Advertising FRIENDS • FRIENDS to have right to unpaid advertising through Upland Today, CITY Website and other CITY advertising resources
Building Decor FRIENDS • FRIENDS to have right to modify decor/wall signs, etc.,with CITY review and approval • FRIENDS to have right to add interior and exterior signage for fundraising programs with CITY review and approval
Facility CITY • CITY to consult with FRIENDS prior to making changes to the shelter facility or use of the facility to Modifications determine impact on FRIENDS operations _ ■ FRIENDS to have right to fund and make modifications to the building,with CITY approval Service CITY • CITY to consult with FRIENDS prior to making changes to the services it offers to determine impact Modifications on FRIENDS operations
Insurance CITY/FRIENDS • CITY to maintain worker's compensation on CITY staff and work release (as it deems necessary) • FRIENDS to maintain worker's compensation insurance on FRIENDS staff • FRIENDS to have right to determine whether to provide worker's compensation insurance to volunteers
• CITY to maintain general liability insurance to cover the building and its operations • FRIENDS to maintain general liability insurance for its operations,but not required to provide general liability covering the building
Banking CITY/FRIENDS • FRIENDS to establish banking services to meet all shelter operations transaction processing. • CITY to maintain banking services to meet transaction processing.
August 2019 Page 8
EXHIBIT"B"
PERFORMANCE GOALS
CITY OF UPLAND ANIMAL SERVICES AND FRIENDS OF UPLAND ANIMAL SHELTER Activity Performance Indicators _ -- Animal Care • FRIENDS will ensure adequate staffing and volunteers to provide the following:
• General care for animals in the custody of FRIENDS to include daily feeding,watering,appropriate exercise,and kennel cleaning
• Necessary medical care for animals in the custody of FRIENDS • Staff and volunteers who create a safe, welcoming environment for animal adoptions and adoption events • Proper protocols to address disease control, sanitation, behavior assessment, and animal isolation/separation.
• Monthly reports detailing: adoptions,returns to owners,transfers to a community partner,euthanized animals, animals in foster care, and available animals. _ Volunteers • FRIENDS will provide a monthly report with the following measurable goals and outcomes of any volunteer program:
• Total number of active volunteers
• Effective coverage of volunteers to ensure all animals receive attention • Retention of existing volunteers
• Number of hours of volunteer labor
• Number of off-site adoption events attended
• Total number of new volunteers(recruitment)
Customer Satisfaction • The CITY will work with FRIENDS to develop a customer satisfaction survey. The survey will include items regarding service level and staff/volunteer competency. The survey will be made available electronically to anyone entering the shelter or adopting an animal. Results will be tabulated monthly and forwarded to FRIENDS. • FRIENDS will review monthly reports and
• Evaluate the feasibility of addressing any valid and substantiated concerns raised • Take corrective measures as may be required
• Discuss concerns and/or new procedures with staff and volunteers • Develop customer service training for staff and volunteers • Provide a monthly report to the CITY that outlines customer satisfaction corrective actions that have been taken or the reasons why no action is warranted
March 201E Page 1
4��a �p19� CITY UPLAND
�5, _�� "The City of Gracious Living"
CltIFOBS
1. Stall(kr°ill
DATE: September 11,2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY,CITY MANAGER
PREPARED BY:STEPHEN PARKER,CPA,ASSISTANT CITY MANAGER
SUBJECT: ADOPTION OF REVISED INVESTMENT POLICY
RECOMMENDED ACTION:
It is recommended that the City Council adopt a Resolution approving and adopting the Revised Annual Statement of Investment Policy for Fiscal Year 2023-2024
GOAL STATEMENT
The proposed action supports the City's goal to provide fiscal stewardship for the City of Upland.
BACKGROUND
On January 1, 1996,the State of California enacted laws that outline standards for investment activities of local public agencies. Common themes in these laws focused on a sound investment policy, oversight of investment activities, safety in managing public funds, and quarterly reporting on the investment portfolio. Pursuant to California Government Code Section 53646, the City Treasurer may annually submit a Statement of Investment Policy to the City Council for the Council's consideration and adoption. Auditors and best practices recommend an annual adoption of such policy.
In summary,the Investment Policy accomplishes the following:
• Defines the City's investment objectives and guidelines,as well as their conformance with California laws; • Delineated the State of California approved investment vehicles that are recommended as suitable to the City of Upland;
• Outlines investment-reporting requirements;and
• Names the City's Investment Officers and delegates investing to those officials.
On June 26,2023,the City Council adopted a Resolution approving and adopting the Annual Statement of Investment Policy for Fiscal Year 2023-2024.
ISSUES AND ANALYSIS
Based on the recommendation of PFM Asset Management,the adopted Investment Policy for Fiscal Year 2022-2023 included a limitation of investment in callable Federal Agency Securities from the previous percentage of 50% to 20%. At the time of the recommendation,the City of Upland had greater than 20%of the portfolio invested in callable Federal Agency Securities. On June 26,2023,with the adoption of the Investment Policy for Fiscal Year 2023-2024, staff requested a modification of the investment portfolio in Section 10.02 to revise the limit of investments in callable Federal Agency Securities to 30%, with staff making no additional purchases of such securities until the City's portfolio goes below the 20% threshold. A thorough review of the City's investments recently identified that the current percentage of the portfolio in callable Federal Agency Securities exceeds the adopted 30%threshold. As such, staff is recommending one modification with this Revised Annual Statement of Investment Policy for Fiscal Year 2023-2024 to amend the 30% limit for callable Federal Agency Securities to a 50% limit, which matches the limit identified in the City's previous investment policies in all years preceding the adoption of the FY 22/23 Investment Policy. As stated previously, staff will not make any new purchases of callable Federal Agency Securities until the City portfolio is below the 20%threshold.
The City of Upland's Statement of Investment Policy for Fiscal Year 2023-2024(Exhibit A)has been prepared in compliance with the State of California Government Code Sections that govern investments. Detailed descriptions of the various recommended allowable investment instruments are included in the policy.
ENVIRONMENTAL DETERMINATION
The proposed action is the adoption of an investment policy,and not subject to the California Environmental Quality Act(CEQA). Section 15378 of the CEQA Guidelines defines a project subject to CEQA. The proposed action is not included within the definition of a"project"and thus is exempt.
FISCAL IMPACTS
There is no fiscal impact associated with this action.
ALTERNATIVES
Provide alternative direction to staff.
CEQA:Not a Project.
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
UPLAND, CALIFORNIA APPROVING AND ADOPTING THE
REVISED ANNUAL STATEMENT OF INVESTMENT POLICY
FOR FISCAL YEAR 2023-2024
WHEREAS, pursuant to Government Code Section 53600.6, the Legislature of the State of California has declared that the deposit and investment of public funds by local officials and local agencies is an issue of statewide concern; and WHEREAS, the City Council may invest surplus monies not required for the immediate necessities of the City in accordance with the provisions of California Government Code Sections 5920 et seq. and 53601 et seq.; and WHEREAS, it shall be the policy of the City of Upland to invest funds in a manner which will provide the highest investment return possible consistent with maximum security while meeting daily cash flow demands and conforming to all other statutes governing the investment of City funds; and
WHEREAS, the City Treasurer of the City of Upland is authorized and shall prepare and submit an annual statement of investment policy and such policy, and any changes thereto, may be considered by the City Council at a public meeting pursuant to Government Code Section 53646 (a) (2); and
WHEREAS, the Assistant City Manager has prepared the annual Statement of Investment Policy (the "Policy"), on behalf of the City Treasurer; and WHEREAS, for the purposes of the Policy, "Investment Officers" shall be defined as the City Treasurer, City Manager, Assistant City Manager, and the Finance Officer; and
WHEREAS, the Policy shall apply without exception to any and all financial assets and funds of the City of Upland.
NOW, THEREFORE, the City Council of the City of Upland hereby finds, determines and resolves as follows:
Section 1. The above recitals are true and correct and are incorporated herein by this reference.
Section 2. The City Council of the City of Upland at a duly noticed public meeting has received, reviewed, and adopts the City of Upland Revised Statement of Investment Policy for Fiscal Year 2023-2024, set forth in Exhibit "A", attached hereto and incorporated herein by this reference.
Section 3. Any and all prior resolutions adopting a Statement of Investment Policy for the City of Upland shall be hereby rescinded.
Resolution No.
Section 4. Pursuant to California Government Code Section 53607, the City Council of the City of Upland hereby delegates the authority to reinvest funds of the City of Upland pursuant to all applicable laws, statutes, and regulations of the State of California as set forth in this Resolution.
Section 5. Compliance with California Environmental Quality Act. The City Council finds that this Resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
Further, if the activity is deemed a project this City Council finds that this Resolution is exempt pursuant to Section 15061(b)(3) of the State CEQA Guidelines.
Section 6. Certification. The City Clerk shall certify to the passage and adoption of this Resolution and enter it into the book of original resolutions.
Section 7. Severability. If any section, subsection, subdivision, sentence, or clause or phrase in this Resolution or any part thereof is for any reason held to be unconstitutional, invalid or ineffective by any court of competent jurisdiction, such decision shall not affect the validity or effectiveness of the remaining portions of this Resolution or any part thereof. The City Council hereby declares that it would have adopted each section irrespective of the fact that any one or more subsections, subdivisions, sentences, clauses, or phrases are declared unconstitutional, invalid, or ineffective.
Section 8. Effective Date. This Resolution shall become effective September 12, 2023.
PASSED, APPROVED and ADOPTED this 11th day of September, 2023.
Bill Velto, Mayor
I, Keri Johnson, City Clerk of the City of Upland, do hereby certify that the foregoing Resolution was adopted at a regular meeting of the City Council held on the 11th day of September, 2023, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAINED:
ATTEST:
Keri Johnson, City Clerk
EXHIBIT A
Revised Statement of Investment Policy
Fiscal Year 2023-2024
POLICY
The purpose of this document is to outline the policy on the investment of public monies.
It is the policy of the City of Upland and the Successor Agency to the Upland Redevelopment Agency (hereafter referred to collectively as the "City") to predicate their investment policies, procedures, and practices upon the limitations placed upon them by governing legislative bodies.
These policies shall have three primary goals:
• To assure compliance with federal, state,and local laws governing the investment of public monies under the control of the City Treasurer.
• To protect the principal monies entrusted to the City. • To generate the maximum amount of investment income within the parameters of prudent risk management as defined in this Statement of Investment Policy.
For the purposes of this policy, "Investment Officers" shall be defined as the City Treasurer, City Manager, Assistant City Manager, and the Finance Officer.
1.0 Scope
This Statement of Investment Policy shall apply to all funds that are under the control of the Investment Officers including, but not limited to, the general fund; special revenue funds; debt service funds; capital project funds; enterprise funds; trust and agency funds; and any other funds under the control of the Investment Officers. These funds are accounted for in the City's Annual Comprehensive Financial Report.
Investment of bond proceeds and related reserve funds shall be governed by the documents authorizing the issuance of such indebtedness. If the bond documents are silent as to the permitted investments, the bond proceeds will be invested in the securities permitted by this Statement of Investment Policy. Notwithstanding the other provisions of this Statement of Investment Policy, the percentage limitations listed in elsewhere in this Statement of Investment Policy do not apply to bond proceeds.
The City's Deferred Compensation Plan ("Plan") shall be excluded from the scope of this Statement of Investment Policy if: (1) a third-party administrator manages the Plan; (2) individual plan participants have control over the selection of investments; and(3)the City has no fiduciary responsibility to act as a "trustee" for the Plan. The only exception to the foregoing shall be that if the City retains the fiduciary responsibility to act as a trustee for the Plan, then the provisions of this Statement of Investment Policy shall apply to the investment of Plan assets.Under these circumstances,the Investment Officers shall provide the Finance Committee and the City Council with a quarterly report on the investment of Plan assets.
Pagel of 17
2.0 Standard of Care
Investment Officers, as trustees of public monies, shall adhere to the "prudent investor" standard when managing the City's investment portfolios. They shall invest "...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 City, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the City. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law." Investment Officers who follow the provisions of this Statement of Investment Policy, and who exercise due diligence shall be relieved of personal responsibility for a security's credit risk or market price risk provided that they report substantial deviations from expectations to the City Manager and to the Finance Committee in a timely manner and that they take appropriate action to control adverse developments. "Substantial deviations" shall be defined as either a decline of 10 percent or more in the market value of a security due to issuer default or a credit risk downgrade or the premature sale of a security at 10 percent or more below its acquisition cost.
3.0 Objective
The City's investment objectives, in order of priority, shall be:
3.1 Safety. Safety of principal shall be the foremost objective. Investments shall be made with the aim of avoiding capital losses due to issuer default; broker-dealer default; or market value erosion. Principal shall be preserved by mitigating:
3.1.1 Credit Risk, the risk of loss due to the failure of the issuer of the security, shall be mitigated by investing in only high-quality securities and by diversifying investments; and
3.1.2 Market Risk, the risk of loss due to a decline in bond prices because of rising market interest rates, shall be mitigated by structuring the portfolios so that issues mature concurrently with the City's anticipated cash requirements,thereby eliminating the need to sell securities prematurely on the open market.
3.1.3 It is recognized, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of the overall investment strategy.
3.2 Liquidity. An adequate percentage of the portfolios shall be maintained in liquid, short-term securities that can be converted to cash, if necessary, to meet disbursement requirements. Since all cash requirements cannot be anticipated, the portfolios should
consist largely of securities with active secondary markets. These securities should have a relatively low sensitivity to market risk. Maximum overall portfolio maturities are referenced in section 15.0,paragraph 2 of this Statement of Investment Policy.
3.3 Yield. Yield shall be considered only after the basic requirements of safety and liquidity have been met.
4.0 Delegation of Authority
California Government Code ("Code") Sections 53607 and 53608 authorize the legislative body of a local agency to invest, deposit, and provide for the safekeeping of the local agency' s funds or to delegate those responsibilities to the treasurer of the local agency. The delegation of investment authority by the City Council to the Investment Officers shall be for a period of one-year period,unless revoked. Subject to review,the City Council may renew the delegation of authority each year.
The Investment Officers shall have the exclusive authority to buy and sell securities on behalf of the City. They shall engage in mutual consultation and in collective decision making on economic trends, investment opportunities, and portfolio structuring.
5.0 Internal Controls
The Investment Officers shall be responsible for ensuring that all investment transactions comply with the City's Statement of Investment Policy and for establishing internal controls that are designed to prevent losses due to fraud,negligence, and third-party misrepresentation.
The Investment Officers shall establish written procedures for the operation of the City's investment program that are consistent with this Statement of Investment Policy.
Internal controls deemed most important shall include: avoidance of collusion; separation of duties and administrative controls; separating transaction authority from accounting and record keeping; custodial safekeeping; clear delegation of authority; management approval and review of investment transactions; specific limitations regarding securities losses and remedial action; written confirmation of telephone transactions; documentation of investment transactions and strategies; and monitoring of results.
6.0 Conflict of Interest
Investment Officers shall refrain from personal business activity that could conflict with the proper execution of the City's investment program or impair their ability to make impartial investment decisions. They shall disclose to the City Council any material financial interest in financial institutions that conduct business within the City's jurisdiction. They shall also disclose any personal investment positions that could be related to the performance of the City's investment portfolios. Investment Officers shall subordinate their personal investment transactions to those of the City, particularly with regard to the timing of securities purchases and sales, and shall avoid transactions that might impair public confidence.
Investment Officers and their immediate relatives shall not accept or solicit any gifts,gratuities, honorariums, or favors from persons or entities who provide or who are seeking to provide financial services to the City.
7.0 Authorized Broker-Dealers
The Investment Officers shall have the authority to select any issuer, or qualified broker- dealer(s) deemed necessary in facilitating investment transactions.
For securities not purchased directly from the issuer, the Investment Officers will maintain a list of approved financial institutions authorized to provide investment services to the City in the State of California. These may include "primary" dealers or regional dealers that qualify under Securities & Exchange Commission Rule 15C3-1 (uniform net capital rule). Best practices include the following: 1) A determination that all approved broker/dealer firms, and individuals covering the City, are reputable and trustworthy; 2)the broker/dealer firms should have the ability to meet all their financial obligations in dealing with the City; 3)the firms, and individuals covering the agency, should be knowledgeable and experienced in public agency investing and the investment products involved; 4)no public deposit shall be made except in a qualified public depository as established by the established State laws; 4) all financial institutions and broker/dealers who desire to conduct investment transactions with the City may supply the Investment Officers with audited financial statements, proof of FINRA certification, trading resolution, proof of State of California registration, a completed broker/dealer questionnaire, certification of having read the City's investment policy and depository contracts.
An annual review of the financial condition and registrations of qualified broker/dealer firms may be conducted by the City and a current audited financial statement requested for each financial institution and broker/dealer in which the City invests. In addition to other requirements, the Investment Officers shall give all approved broker-dealers a copy of the City's current Statement of Investment Policy and a certification form. The completion and submission of the certification form by an approved broker-dealer shall constitute proof that it has received the City's Statement of Investment Policy, read it,and intends to comply with it. The Investment Officers shall keep current audited annual financial statements on file for each approved broker-dealer with which the City does business.
Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded. If there is no other readily available competitive offering, the investment officer shall make their best efforts to document quotations for comparable or alternative securities.
8.0 Authorized Public Depositories
The Investment Officers shall maintain an Approved List of all financial institutions that the Finance Committee and the City Council have authorized as public depositories of City monies. This List shall be provided to all members of the City Council and the Finance Committee.
The City shall only deposit public monies in financial institutions that have: (1) an overall Community Reinvestment Act rating of not less than "satisfactory" of meeting the credit needs of California's communities; (2) at least $100 million in total assets; (3) a core capital-to-total assets ratio of at least five percent; (4) favorable statistical ratings from a nationally recognized rating service,as determined by the Investment Officers;(5)a federal or a state charter;and(6)a branch office within San Bernardino County and/or Los Angeles County.
Under no circumstances shall the City's deposits in a financial institution exceed the total shareholder's equity of that institution.
Any financial institution that has City funds on deposit must comply with the requirements of Code Sections 53630 et seq., including collateralization of deposits. The Investment Officers may waive the collateralization requirements for any portion of the deposit that is covered by Federal Deposit Insurance. As provided by Code Section 53649, the City shall have a signed contract with each financial institution that has City funds on deposit.
9.0 Safekeeping and Custody
Investment Officers shall conduct all security transactions on a delivery-versus- payment ("DVP") or on a receipt-versus-payment ("RVP") basis. A third-party bank trust department ("Custodian") that acts as an agent for the City under the terms of a custody agreement executed between both parties shall hold the securities. The City's Custodian shall be represented on the Approved List.
The only exception to the foregoing shall be securities purchases made with: (1) local government investment pools; (2) money market mutual funds; and (3) Federal Reserve Banks ("Treasury Direct Program") since the purchased securities are not deliverable. No securities broker-dealer or investment advisor shall have access to City monies, accounts, or investments. Any transfer of monies to or through a securities broker-dealer must have the Investment Officers' prior written approval. If they are unavailable, then the management authorization chain-of-command specified in section 4.0, paragraph 2 of this Statement of Investment Policy shall be followed.
The City shall not purchase more than $15 million of securities from the Custodian if the Custodian will subsequently be holding those securities in custody for the City.
The City shall require Broker Trade Confirmations for all trades. Investment Officers shall review these confirmations immediately upon receipt, for conformity with the terms of the City's Trade Sheets.
10.0 Authorized Investments
The City's investments are governed by 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 Statement of Investment Policy and the Code, the more restrictive parameters will take precedence. Percentage holding limits listed in this section apply at the time the security is purchased.
Any investment currently held at the time this Statement of Investment 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 financial institutions.
10.01 United States Instruments
United States Treasury notes, bonds, bills, or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. There is no limitation as to the percentage of City's investment portfolio that may be invested in this category.
10.02 Federal Agency Securities
Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There is no limitation as to the percentage of City's investment portfolio that may be invested in this category. No more than 50 percent of the market value of the City's investment portfolio may be invested in any one issuer. No more than 50 percent of the market value of the City's investment portfolio may be invested in callable securities.
10.03 Municipal Securities
Bonds issued by the City, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the City or by a department,board, agency, or authority of the City. Purchases of any obligation of the City of Upland by an Enterprise Fund of the City shall not require a rating from a Nationally Recognized Statistical Rating Organization(NRSRO).
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.
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.
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.
Purchases are limited to securities rated in a rating category of"A" (long-term)or"A- 1" (short-term) or their equivalents or better by a NRSRO. No more than 30 percent of the market value of the City's investment portfolio shall be invested in this category.
10.04 Medium-Term Notes
Defined as all corporate and depository institutions 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. Investment shall be limited to medium-term notes("MTN")rated in a rating category of"A" or better by an NRSRO.
No more than 30 percent of the market value of the City's investment portfolio shall be invested in this category.
10.05 Bankers' Acceptances
Bankers' acceptances (BAs) otherwise known as bills of exchange or time drafts that are drawn on and accepted by a commercial bank which have short-term debt obligations rated in the rating category of"A-1" or higher by a NRSRO. Purchases of BAs shall not exceed 180 days to maturity. No more than 40 percent of the market value of the City's investment portfolio shall be invested in this category.
10.06 Commercial Paper
Commercial paper of"prime"quality of the highest ranking or of the highest letter and number rating as provided for by a NRSRO. The entity that issues the commercial paper shall meet 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), and(C) Has debt other than commercial paper, if any, that is rated in a rating category of"A" or its equivalent or better by an NRSRO. Purchases of CP shall not exceed 270 days to maturity. No more than 40 percent of the market value of the City's investment portfolio shall be invested in this category. If the City's investable assets fall below $100 million, no more than 25 percent of the market value of the City's investment portfolio shall be invested in this category.
10.07 Asset Backed, Mortgage-Backed, Mortgage Pass-Through securities and Collateralized Mortgage Obligations
A mortgage passthrough security, collateralized mortgage obligation, mortgage- backed or other pay-through bond, equipment lease-backed certificate, consumer receivable passthrough certificate, or consumer receivable-backed bond with a maximum remaining maturity of five years or less. Securities shall be rated in a rating category of"AA"or its equivalent or better by an NRSRO. No more than 20 percent of the market value of the City's investment portfolio shall be invested in this category.
10.08 Negotiable Certificates of Deposit
Negotiable certificates of deposit issued by a nationally or state-chartered bank, a savings association, or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank. Purchases are limited to securities rated in a rating category of"A" (long-term) or"A-1" (short-term) or their equivalents or better by an NRSRO. The Investment Officers can exempt from these rating requirements any Negotiable CDs for which the full amount of the CD
and the interest that may accrue shall at all times be covered by Federal Deposit insurance. No more than 30 percent of the market value of the City's investment portfolio shall be invested in this category.
10.09 Money Market Mutual Funds
Money Market Mutual Funds investments shall be permitted in shares of beneficial interest issued by diversified management companies that are government money market funds ("MMF") registered with the SEC under the Investment Company Act of 1940. Commission (e.g., sales load on purchases, reinvested dividends, redemptions, and exchanges) shall not be included in the purchase of any fund shares. A qualifying MMF must have: (1)total portfolio net assets of$500 million or more; and (2) the highest rating of the two largest nationally recognized rating services OR an investment advisor who is registered with the SEC, and who has five years or more of experience investing for MMFs of$500 million or more in total portfolio net assets. The City shall require audited annual financial statements from each MMF in which it has public monies invested. No more than 20 percent of the market value of the City's investment portfolio may be invested in this category.
10.10 Local Agency Investment Fund("LAIF")
Investment shall be permitted in this pool which is organized and managed by the State Treasurer's Office for the benefit of local agencies,pursuant to Code Section 16429.1. The City Council approved City participation in LAIF on February 22, 1977 in Resolution Number 2716. The Successor Agency to the Redevelopment Agency approved participation in LAIF on February 13, 2012 in Resolution Number 2012-4. Investment shall be limited to the maximum amount per legal entity that is permitted by the program.
10.11 Supranational Securities
United States dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. The securities shall be rated in a rating category of"AA"or its equivalent or better by a NRSRO. No more than 30 percent of the market value of the City's investment portfolio may be invested in this category. No more than 10 percent of the market value of the City's investment portfolio may be invested in any single issuer, and the maximum maturity shall not exceed five years.
10.12 Local Government Investment Pools ("LGIP").
Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized by Code.
The City will limit investments to LGIPs that seek to maintain a stable net asset value. There is no limitation as to the percentage of City's investment portfolio that may be invested in this category.
10.13 Placement Service Deposits.
Funds may be placed with a California financial institution that may utilize a private sector entity that assists in the placement of deposit with eligible financial institutions located in the United States in accordance with Code 53601.8. The full amount of the principal and the interest that may be accrued during the maximum term of the deposit shall always be insured by federal deposit insurance. No more than 30 percent of the market value of the City's investment portfolios may be invested in this category. The maximum investment maturity will be restricted to five years.
10.14 Bank Deposits.
FDIC insured or fully collateralized demand deposit accounts, savings accounts, market rate accounts,or time certificates of deposits in financial institutions located in California. There is no limitation as to the percentage of City's investment portfolio that may be invested in this category, however, no more than 25 percent of the market value of the portfolio may be invested in time deposits. The maximum investment maturity will be restricted to five years.
11.0 Prohibited Investments and Practices
Investment Officers shall not invest public monies in financial instruments that are not authorized under this Statement of Investment Policy.
Prohibited investments shall include,but shall not be limited to,equity securities,bond mutual funds, repurchase agreements, reverse repurchase agreements, and derivative contracts (forwards, futures, and options). The purchase of derivative securities shall be prohibited except for callable and for zero coupon Treasury ("STRIPS")securities.
Investment Officers shall not engage in securities lending, short selling, or other hedging strategies.
LAIF, LGIPs, and MMFs shall be exempt from the prohibitions on derivative contracts, derivative securities, repurchase agreements, reverse repurchase agreements, securities lending, short selling, and other hedging strategies.
12.0 Investment Pools
Investment Officers shall investigate all investment pools (LAIF, LGIPs, MMFs) prior to investing public monies and periodically thereafter while City public monies are invested in the investment pool.
13.0 Diversification
Investment Officers shall diversify the City's investment portfolio by security type and by issuer to avoid incurring unreasonable risks inherent in over-investing in specific instruments, individual financial institutions, or maturities. No more than 5 percent of the total portfolio market value may be invested in securities of any single issuer, except where the issuer is the US Government, its Agencies and GSEs, supranational securities, collateralized deposits,
LAIF, money market mutual funds or local government investment pools.
14.0 Maximum Maturity
For those investment types for which this Statement of Investment Policy does not specify a maturity limit, no individual investment shall exceed a maturity of five years from the date of purchase unless the City Council has granted express authority to make that investment either specifically or as a part of an investment program approved by the City Council no less than three months prior to the investment.
Additionally,the City may purchase a Municipal Security issued by the City from surplus moneys of any fund of the City as a part of an investment program approved by the legislative body no less than three months prior to the investment. This would include investments made to reduce the City's Unfunded Accrued Liability(UAL)with California Public Employees' Retirement System(CalPERS).
This Policy authorizes investing bond project and reserve funds beyond five years if the maturities of such investments do not exceed the expected use of the funds,the investments are deemed prudent in the opinion of the Investment Officers, and the investments are not prohibited by the applicable bond documents.
Maturities may vary from 1 day to five years at the investment officers' discretion.
Municipal Securities of the City to reduce its UAL with CalPERS may have a maturity up to and not exceeding twenty years, and which shall be approved by the City Council. The portfolio should be managed in such a manner as to meet the City's liquidity, safety, and capital preservation needs.
15.0 Portfolio Rebalancing
In the event that portfolio percentage constraints are violated due to a temporary imbalance in the portfolio, then Investment Officers may hold the affected securities to maturity in order to avoid capital losses. If no capital losses would be realized upon sale, however, then the Investment Officers shall consider rebalancing the portfolio after evaluating the expected length of time that it will be imbalanced. Portfolio percentage limits are in place in order to ensure diversification of the City investment portfolio; a small, temporary imbalance, not to exceed three months, will not significantly impair that strategy. Bond or note proceeds shall not be factored into the balance of the portfolio.
16.0 Credit Downgrading
This Statement of Investment Policy sets forth minimum credit risk criteria for each type of security. This credit risk criteria applies to the initial purchase of a security; it does not automatically force the sale of a security if its credit risk ratings fall below policy limits.
If a security is downgraded below the minimum credit risk criteria specified in this Statement of Investment Policy, then the Investment Officers shall evaluate the downgrade on a case-by- case basis in order to determine if the security should be held or sold.
The Investment Officers shall inform the Finance Committee at its next regular meeting of the credit downgrade and of the Investment Officer's decision to hold or sell the downgraded
security.
The Investment Officers shall review the credit standing of all securities in the City's investment portfolios on a semiannual basis.
17.0 Portfolio Benchmark
The City Treasurer shall monitor and evaluate the portfolio's performance relative to a market benchmark,which will be included in the Treasurer's monthly report. The City Treasurer shall select an appropriate,readily available index to use as a market benchmark.
The City's portfolios may be actively managed for purposes of improving portfolio risk structure, liquidity, or yield in response to market conditions or to meet City requirements.
18.0 Reporting
The Investment Officers shall provide a monthly report of investment transactions to the City Council and an investment report to the Finance Committee at the regularly scheduled meeting.
The investment report shall include a complete portfolio inventory with details on issue, par value, market value, coupon/rate, original settlement date of purchase, final maturity date, average weighted yield, and average days to maturity, and market value (including source of market valuation). The report will include a statement on compliance or noncompliance with the City's Statement of Investment Policy and a statement on whether there are or are not sufficient funds to meet the City's anticipated cash requirements for the next six months.
19.0 Policy Review and Adoption
The Investment Officers shall submit a Statement of Investment Policy, including any recommended changes, to the City Council and the Successor Agency Board annually for their review and adoption.
GLOSSARY OF INVESTMENT TERMS
Agencies. Shorthand market terminology for any obligation issued by a government- sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:
FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.
FHLB.The Federal Home Loan Bank provides credit and liquidity in the housing market.
FHLB issues discount notes and bonds.
FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called"Freddie Mac" issues discount notes, bonds, and mortgage pass-through securities.
FNMA. Like FHLB and Freddie Mac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as "Fannie Mae," issues discount notes,bonds, and mortgage pass-through securities.
GNMA.The Government National Mortgage Association, known as "Ginnie Mae" issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.
PEFCO.The Private Export Funding Corporation assists exporters.Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.
TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.
Asked.The price at which a seller offers to sell a security.
Asset Backed Securities. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.
Average Life. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.
Bankers' Acceptance. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which "accepts" the obligation to pay the investor.
Benchmark. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.
Bid. The price at which a buyer offers to buy a security.
Broker. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.
Callable. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issued a security, the issuer will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made.
Certificate of Deposit(CD).A time deposit with a specific maturity evidenced by a certificate.
Large denomination CDs may be marketable.
Collateral. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.
Collateralized Mortgage Obligations(CMO).Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.
Commercial Paper. The short-term unsecured debt of corporations.
Cost Yield. The annual income from an investment divided by the purchase cost. Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.
Coupon. The annual rate of interest which is paid on a bond.
Credit Risk.The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.
Current Yield. The annual income from an investment divided by the current market value.
Since the mathematical calculation relies on the current market value rather than the investor's cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.
Dealer.A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.
Debenture.A bond secured only by the general credit of the issuer.
Delivery vs.Payment(DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser's agent.
Derivative. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components ("Stripped" coupons and principal). A derivative is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.
Discount. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker's acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.
Diversification.Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.
Duration. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).
Federal Deposit Insurance Corporation(FDIC).An independent US agency that insures bank deposits, including deposits in a checking account, negotiable order of withdrawal (NOW) account savings account, money market deposit account (MMDA), time deposit such as a certificate of deposit (CD), or an official item issued by a bank (such as a cashier's check or money order), currently up to $250,000 per depositor, per issued bank, for each account ownership category.
Federal Funds Rate.The rate of interest charged by banks for short-term loans to other banks.
The Federal Reserve Bank through open-market operations establishes it.
Federal Open Market Committee.A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.
Investment Advisor.As defined by the Investment Advisors Act of 1940, any person or group that makes investment recommendations or conducts securities analysis in return for a fee, whether through direct management of client assets or via written publications. An investment advisor who has sufficient assets to be registered with the SEC is known as a Registered Investment Advisor, or RIA. Investment advisors are prohibited from disseminating advice known to be deceitful or fraudulent and from acting as a principal on their own accounts by buying and selling securities between themselves and a client without prior written consent.
Leverage. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.
Liquidity: The speed and ease with which an asset can be converted to cash without a substantial loss in value
Local Agency Investment Fund(LAIF).The aggregate of all funds from political subdivisions that are placed in custody of the State Treasurer for investment and reinvestment.
Local Government Investment Pool (LGIP). A comingled investment pool comprised of funds from political subdivisions that are placed in custody of the program for investment and reinvestment.
Make Whole Call. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option,with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call.With this type of call, an investor is compensated,or"made whole..
Margin: The difference between the market value of a security and the loan a broker makes using that security as collateral.
Market Risk.The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.
Market Value. The price at which a security can be traded.
Marking to Market.The process of posting current market values for securities in a portfolio.
Maturity. The final date upon which the principal of a security becomes due and payable.
Medium Term Notes. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.
Modified Duration. The percent change in price for a 100 basis point change in yields.
Modified duration is the best single measure of a portfolio's or security's exposure to market risk.
Money Market. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker's acceptances) are issued and traded.
Mortgage Pass-Through Securities. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.
Municipal Securities. Securities issued by state and local agencies to finance capital and operating expenses.
Mutual Fund.An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund's prospectus. Mutual funds can be invested
in various types of domestic and/or international stocks and bonds, and money market instruments, as set forth in the individual fund's prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.
Nationally Recognized Statistical Rating Organization (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities,pay credit rating agencies to provide them with ratings.
The three most prominent NRSROs are Fitch, S&P, and Moody's.
Premium. The difference between the par value of a bond and the cost of the bond, when the cost is above par.
Prepayment Speed. A measure of how quickly principal is repaid to investors in mortgage securities.
Prepayment Window. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.
Primary Dealer. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.
Government securities market.
Prudent Person (Prudent Investor) Rule. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as "Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes." Realized Yield.The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.
Regional Dealer. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.
Repurchase Agreement (RP, Repo). Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller's point of view,the same transaction is a reverse repurchase agreement.
Safekeeping. A service to bank customers whereby securities are held by the bank in the customer's name.
Structured Note.A complex,fixed income instrument,which pays interest,based on a formula tied to other interest rates, commodities, or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the
relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.
Supranational. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.
Time Deposit.A savings account or certificate of deposit(CD)that pays a fixed rate of interest until a given maturity date.
Total Rate of Return. A measure of a portfolio's performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.
U.S. Treasury Obligations. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.
Treasury Bills. Treasury securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues "cash management" bills as needed to smooth out cash flows.
Treasury Notes. Treasury securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.
Treasury Bonds. Treasury securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.
Volatility. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.
Yield to Maturity. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.
4,c trpl CITY
UPLAND
„.;
"The City of Gracious Living"
tIFOBS
1. Stall(kr Ctilt
DATE: September 11,2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY,CITY MANAGER
PREPARED BY:BRADEN YU,PUBLIC WORKS DIRECTOR
RICHARD SMIDERLE,OPERATIONS MANAGER
SUBJECT: CONSIDER ACCEPTANCE OF THE NOTICE OF COMPLETION FOR PROJECT NO.23923
LANDECENA BUILDING INTERIOR IMPROVEMENTS
RECOMMENDED ACTION:
It is recommended that the City Council accept the work for Project Number 23923,the Landecena Building Interior Improvement Project;and authorize the City Manager or designee to record the Notice of Completion.
GOAL STATEMENT
The proposed action supports the City's goal in providing a functional, well equipped, and newly remodeled community building asset to be utilized for various events,functions and/or rental opportunities.
BACKGROUND
On April 24, 2023, the City Council awarded the Landecena Building Interior Improvement Project to R.S.
Construction&Development Inc. and authorized a total expenditure amount of$137,000. The project consisted of the renovation of the Landecena building interior infrastructure including new ceiling tiles,wall texturing,painting of all walls,doors,door jambs,and all new flooring.
ISSUES AND ANALYSIS
The contractor,R.S. Construction,has satisfactorily completed the required improvements. The City of Upland can now accept all the work and file the Notice of Completion.
ENVIRONMENTAL DETERMINATION
This project has been assessed in accordance with the authority and criteria contained in the California Environmental Quality Act (CEQA), and the State CEQA Guidelines, and determined to be categorically exempt from further environmental review pursuant to Section 15301(c)(Existing Facilities),of the CEQA guidelines.The project involves repair and maintenance of existing public facilities and does not involve any expansion of use beyond that which is existing.
FISCAL IMPACTS
The final construction cost of$135,808 is within the original authorized appropriation amount of$137,000. Therefore, no additional appropriation is necessary.
ALTERNATIVES
Provide alternative direction to staff.
CEQA: Determined to be categorically exempt from further environmental review pursuant to Section 15301(c) (Existing Facilities),of the CEQA guidelines.
Recording requested by
and when recorded mail to:
City of Upland, City Clerk's Office
460 N. Euclid Avenue
Upland, CA 91786
(Space above this line for Recorder's use)
This document is exempt from the payment of a recording fee pursuant to Government Code Section 27383
Notice of Completion
Pursuant to Civil Code Section 3093, NOTICE is hereby given that:
The undersigned is the owner of the interest or estate stated below in the property hereinafter described. The full name and address of owner is City of Upland, 460 North Euclid Avenue, Upland, California 91786.
Assessors Parcel Numbers N/A, in and to the hereinafter described property.
The work was completed on that certain work known as Project 23923, Landecena Building Interior Improvement Project for the undersigned City of Upland, a Municipal Corporation, on the 30th day of June, 2023.
The City accepted the job on the 11th day of September, 2023.
The Contractor on said job was R.S. Construction & Development Inc. of Ontario, California.
The improvement(s) consisted of new ceiling tiles, wall texturing, painting of all walls, doors, door jambs, and all new flooring; and the location of the improvements occurred at 1325 San Bernardino Rd, Upland, CA 91786.
The surety was Philadelphia Indemnity Insurance Co.
All communications relating to the contract should bear the number above mentioned.
I hereby certify under penalty of perjury that the foregoing is true and correct.
Executed this 11t' day of September, 2023 at Upland, California.
City of Upland, a Municipal Corporation
Michael Blay, City Manager
� �p1
4,� 94" CITY UPLAND
1, i. "The City of Gracious Living"
C.1tIFOBS
1. C-Staff(kr Oilt
DATE: September 11,2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY,CITY MANAGER
PREPARED BY:BRADEN YU,PUBLIC WORKS DIRECTOR
MIKE KITCHEN, SPECIAL FLEET CONSULTANT
SUBJECT: CONSIDER APPROVAL OF THE PURCHASE OF POLICE AND WATER VEHICLES RECOMMENDED ACTION:
It is recommended that the City Council approve the purchase of five(5)new 2024 Police Patrol Dodge Durango's, two (2) new 2024 Police Administration Dodge Durango's, and one (1) new 2024 Water Administration Dodge Durango from National Auto Fleet Group in the amount of$406,569.94; and authorize the City Manager to execute all necessary documents for the purchase of the vehicles.
GOAL STATEMENT
The proposed action supports the City's goal of the ongoing long-term City-wide fleet replacement and modernization program.
BACKGROUND
Sourcewell, formerly known as the National Joints Powers Alliance (NJPA), is a self-sustaining government organization with over forty (40) years of dedicated service helping government, education, and nonprofit organizations operate efficiently by providing contract purchasing solutions through cooperative purchasing.
Cooperative purchasing is "procurement conducted by, or on behalf of, one or more Public Procurement Units" as defined by the American Bar Association Model Procurement Code for State and Local Governments. This arrangement allows multiple agencies to combine their buying requirements into a single contract and aggregate volume to enhance their purchasing power. Participants can negotiate lower prices, reduce their time spent in procurement and contracting,and benefit from more favorable term and conditions.
Participation in Sourcewell is available at no-cost,no obligation,and no liability to public agencies, school districts, state colleges, universities, and local governments. Sourcewell follows the competitive contracting law process to solicit, evaluate, and award cooperative purchasing contracts for goods and services. Sourcewell saves purchasers money by offering better pricing,less time is spent reviewing bids,and combining the purchasing power of more than 50,000 organizations. The City of Upland is a Sourcewell member,and this procurement process meets the State of California's Cooperative Purchasing Code 6500 and 6502; as well as Upland Municipal Code Section 2.48.080 allowing the City to dispense with the bidding procedures when the purchases are beneficial to the interests of the City and from suppliers who have been awarded a contract resulting from a formal competitive bidding process by another governmental agency.
ISSUES AND ANALYSIS
The Public Works Fleet Maintenance Division is responsible for the acquisition,maintenance and repair of City fleet vehicles and equipment. As part of the City's long-term fleet replacement and modernization program, the Fleet Maintenance Division works with all the City's Departments on designing,acquisition,and vehicle replacement.
With the approval of the 2023/2024 budget,the Public Works Fleet Maintenance Division requested a bid quote from National Auto Fleet Group,who was awarded a Sourcewell contract(number 091521-NAF)for the purchase of five (5)new 2024 Dodge Patrol Package Durango's,four(4)new 2024 Dodge Administration Police Package Durango's, and one(1)new 2024 Dodge Durango Administration for the Water Division.
ENVIRONMENTAL DETERMINATION
The purchase of a vehicle for maintenance is not considered a project under the California Environmental Quality Act (CEQA)and is Exempt from CEQA.
FISCAL IMPACTS
The FY 23/24 operating budget includes funds for the purchase of five(5)Police Patrol Durango's account 7523211- 5531 ($257,819.56), two (2) Police Administration Durango's account 7523201-5531 ($99,166.92), and one Water Administration Durango account 6406201-5531 ($49,583.46).No additional appropriation is necessary.
ALTERNATIVES
Provide alternative direction to staff.
CEQA:Not a Project
of.. National Auto Fleet GroupVAVIRAA Divison of Chvrolet of Wtsonille 490 Auto Center Drive, Watsonville, CA 95076
(855) 289-6572 • (855) BUY-NJPA • (831) 480-8497 Fax
[email protected]
July 14, 2023
Mike Kitchen
City of Upland
460 N Euclid Ave
Upland, Ca 91786
Delivery Via Email
Dear Mr. Kitchen,
In response to your inquiry, we are pleased to submit the following for your consideration:
National Auto Fleet Group will sell, service and deliver at Upland, new/unused 2024 Dodge Durango Pursuit V-8 AWD UC Units responding to your requirement with the attached specifications for$ 45,893.00 plus State Sales Tax, and $8.75 tire tax (non-taxable). These vehicles are available under the NJPA master vehicle contract# 091521-NM. Colors TBD
One unit Total Extended units
MSRP Selling Price Savings (4) Total Savings 2024 Durango
Pursuit V-8 AWD
UC Units 49,440.00 45,893.00 7.17% 183,572.00 14,188.00 Sub Total 45,893.00 183,572.00
Sales Tax 3,556.71 14,226.83
Tire Tax 8.75 35.00
Transport 125.00 500.00
Total 49,583.46 198,333.83
Terms are net 30 days.
Delivery 120-180 Days ARO
National Auto Fleet Group welcomes the opportunity to assist you in your vehicle requirements.
Kevin Buzzard
National Law Enforcement Sales Manager
National Auto Fleet Group
626-457-5590 0
714-264-1867 C
[email protected]
TOYOTA &WEi ri51M er NISSAN t ClxC�
} ` `' Page 145 of 149
National Auto Fleet Group
A Division of Chevrolet of Watsonville
490 Auto Center Drive, Watsonville, CA 95076
(855) 289-6572 • (855) BUY-NJPA • (831) 480-8497 Fax
Fleet@NationaIAutoFleetGroup,Com
July 13, 2023
Mike Kitchen
City of Upland
460 N Euclid Ave
Upland, Ca 91786
Delivery Via Email
Dear Mr. Kitchen,
In response to your inquiry, we are pleased to submit the following for your consideration:
National Auto FIeet Group will sell, service and deliver at Upland, new/unused 2024 Dodge Durango Pursuit V-8 AWD Patrol responding to your requirement with the attached specifications for$46,265.00 plus State Sales Tax, and $8.75 tire tax (non-taxable). These vehicles are available under the NJPA master vehicle contract#091521-NAF.
One unit SellingPrice Total Extended units MSRP Savings (5) Total Savings
2024 Durango
Pursuit V-8 AWD
Patrol 49,825.00 46,265.00 7.15% 231,325.00 17,800.00 Black and White
Paint 1,350.00 6,750.00
Sub Total 47,615.00 238,075.00
Sales Tax 3,690.16 18,450.81
Tire Tax 8.75 43.75
Transport 250.00 1,250.00
Total 51,563.91 257,819.56
Terms are net 30 days.
Delivery 120-180 Days ARO
National Auto Fleet Group welcomes the opportunity to assist you in your vehicle requirements.
Kevin Buzzard
National Law Enforcement Sales Manager
National Auto Fleet Group
626-457-5590 0
714-264-1867 C
[email protected]
4.111111.
. ,, 1 Assz=m NISSAN c..... ece-D
NO National Auto Fleet Group
A Division of Chevrolet of Watsonville
Ve'a7.4
490 Auto Center Drive, Watsonville, CA 95076
(855) 289-6572 • (855) BUY-NJPA • (831) 480-8497 Fax
[email protected]
July 13, 2023
Mike Kitchen
City of Upland
460 N Euclid Ave
Upland, Ca 91786
Delivery Via Email
Dear Mr. Kitchen,
In response to your inquiry, we are pleased to submit the following for your consideration:
National Auto Fleet Group will sell, service and deliver at Upland, new/unused 2024 Dodge Durango Pursuit V-8 AWD Admin responding to your requirement with the attached specifications for$45,893.00 plus State Sales Tax, and$8.75 tire tax(non-taxable). These vehicles are available under the NJPA master vehicle contract#091521-NAF. Color to be White.
One unit Selling Price Total Total Savings
MSRP Savings
2024 Durango
Pursuit V-8 AWD
UC Units 49,440.00 45,893.00 7.17% 3,547.00 Sub Total 45,893.00
Sates Tax 3,556.71
Tire Tax 8.75
Transport 125.00
Total 49,583.46
Terms are net 30 days.
Delivery 120-180 Days ARO
National Auto Fleet Group welcomes the opportunity to assist you in your vehicle requirements.
Kevin Buzzard
National Law Enforcement Sales Manager
National Auto Fleet Group
626-457-5590 0
714-264-1867 C
[email protected]
T OYO N 155A N
r ' - ► � Page 147 of 149
4,a trpl CITY
UPLAND
„.;
"The City of Gracious Living"
tIFOBS
1. Stall(kr Ctilt
DATE: September 11,2023
TO: MAYOR AND CITY COUNCIL
FROM: MICHAEL BLAY,CITY MANAGER
PREPARED BY:BRADEN YU,PUBLIC WORKS DIRECTOR
BOB CRITCHFIELD,ENGINEERING MANAGER
NICOLE DEMOET,ENVRONMENTAL COMPLIANCE PROGRAMS MANAGER
JULIAN CHANG,ENVIRONMENTAL DIVISION ASSOCIATE ENGINEER
SUBJECT: REISSUE AWARD OF BID FOR STORM WATER TRASH CAPTURE SYSTEM
INSTALLATION PROJECT
RECOMMENDED ACTION:
It is recommended that the City Council award the construction contract to Downstream Service, Inc. in the amount of$46,060; and approve a construction contingency in the amount of$9,940 for a total amount of$56,000.
GOAL STATEMENT
The proposed action supports the City's goal of remaining in compliance with the Trash Provision Order set forth by the State Water Resources Control Board,which will also be required in the upcoming proposed Regional MS4 Permit.
BACKGROUND
Pursuant to Resolution No.2015-0019 of the State Water Resources Control Board,and the Federal Clean Water Act section 402(p), the City of Upland is in the process of installing, operating, and maintaining Full Capture Systems (FCS)for all storm drains that capture runoff form priority land uses citywide. Priority land uses include high-density residential,industrial,commercial,mixed urban,and public transportation stations. Studies have identified these areas to be significant sources of trash generation. The City is required by the Trash Provision Order to have FCS installed in all Priority Land Use areas by 2030. This project includes furnishing and installing of FCS in five (5) existing Catch Basins (CBs) at the northeast corner of the intersection of Monte Vista Avenue and Foothill Boulevard, and seventeen(17) existing CBs along Mountain Avenue and 9' Street, as well as the installation of a catch basin filter insert inside a curb opening catch basin located at 1200 N.Benson Avenue.
The City evaluated FCS from various manufacturers, and has chosen two specific models (or their approved equivalent) that are a good fit for our application based on ease of maintenance, structural integrity, and future expandability. Below the key dates and events for this project have been outlined in summary:
• On June 5,2023,the City received and opened 3 bids for the Project,under Bid No.2023-01,as follows:
Bidder Bid Amount
Downstream Service,Inc. $46,060.00
C.P. Construction Company,Inc. $149,100.00
United Stormwater,Inc. $38,201.00
• On June 26,2023,the City awarded a construction contract to United Storm Water,Inc.(USW)as the lowest bidder for Project No. 9149, Storm Water Trash Capture System Installation, with a bid amount of $38,201.00.
• On June 27, 2023, USW contacted the City to make a Substitution Request to install their own CPS (Connector Pipe Screen) product in place of the ones specified in the Contract Specifications, stating that they "manufacture and install this device [themselves], and will not install the CPS device of any other manufacturer."
• On June 28,2023,the City requested a formal Affidavit for the Substitution Request. • Only July 11,2023,USW submitted the Affidavit for the substitution Request.
• On August 3, 2023, the City responded with the evaluation of the Request for Substitution, deeming the requested substitution to not be substantially equal to or better than that specified. • On August 7,2023,USW informed the city their intent to withdraw its submittal.
ISSUES AND ANALYSIS
Per California Public Contract Code §5106,the City may now award the construction contract to the second-lowest bidder Downstream Service,Inc.with the bid amount of$46,060. The bid amount of$46,060 from the second-lowest bidder is still lower than the engineer's estimate of$49,800. If awarded by the City Council,construction is anticipated to begin in November and be substantially complete by January 2024, weather permitting. Staff recommends that City Council approve and award the construction contract to Downstream Services, Inc. in the amount of$46,060; and approve a construction contingency in the amount of$9,940,for a total amount of$56,000.
ENVIRONMENTAL DETERMINATION
The project has been assessed in accordance with the authority and criteria contained in CEQA and determined to be categorically exempt from further environmental review pursuant to Section 15301(c). The project involves repair, maintenance,and retrofit of existing public facilities,and does not involve any expansion of use beyond that which is existing. The City filed the Notice of Exemption with the County of San Bernardino on June 7,2023.
FISCAL IMPACTS
The City's adopted Fiscal Year 2023-24 Capital Improvement Program(CIP)budget contains sufficient funds for the project. The estimated project costs and funding are summarized below:
Estimate Project Costs
Basic Bid Amount $46,060.00
Construction Contingency $9,940.00
Total Contract Work: $56,000.00
Construction Administration and Inspection $10,000.00 Total Project Cost: $66,000.00
Funding
FY 23-24 CIP Account No. 640-9149 $66,000.00
Total Project Funding: $66,000.00
ALTERNATIVES
1. Reject all bids and authorize the City clerk to re-advertise the Storm Water Trash Capture System Installation System Installation Project. Due to a successful bidding process and strict timelines associated with the Trash Provision Order compliance,staff does not recommend this alternative.
2. Provide alternative direction to staff.
CEQA: Determined to be categorically exempt from further environmental review pursuant to Section 15301(c).