.
TO:
FRO
M:
DA
TE:
SUBJECT:
Honorable Mayor and Council Members
Maria O. Martinez, City Clerk
June 17, 2024
Correction on the June 18, 2024, City Council Meeting Agenda item 11c, 11g and 11h
Due to an oversight, the correct supporting documentation was not attached to items 11c, 11g and 11h. The supporting documentation for said items is attached.
Item 11 c – Investment Policy
• R
esolution
• Investment Policy
Item 11g and 11h - TDA Claim
• Exhibit 4-Resolution
• Exhibit 2-Proof of Publication
• Exhibit 3- Minutes
STAFF REPORT
City of Wasco
RESOLUTION NO. 2024 -_________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WASCO ADOPTING THE ANNUAL
STATEMENT OF INVESTMENT POLICY
WHEREAS, California Government Code Section 53646 (a) (2) states, “The Treasurer or Chief Fiscal Officer shall annually render to the legislative body of the local agency a Statement of Investment Policy”; and
WHEREAS, The Statement of Investment Policy attached hereto and by this reference incorporated herein as if fully set forth herein is in compliance with state statute pertaining to local agency investments pursuant to Government Code Sections 53600 et seq; and WHEREAS, the City Council has reviewed and considered said Statement of Investment Policy and finds that it fairly represents well established, soun d investment practices intended to safeguard the public financial assets of the City.
NOW THEREFORE BE IT RESOLVED, by the City Council of the City of Wasco as follows:
SECTION 1: The City Council adopts the Statement of Investment Policy as required by law.
SECTION 2: The Finance Director and Treasurer are hereby directed and authorized to do all things necessary to implement said Statement of Investment Policy
SECTION 3: Pursuant to Government Code Sections 53601 et. Seq., the City of Wasco hereby authorizes and directs the City Finance Director and City Treasurer to invest funds not required for the immediate necessities of the City in accordance with the attached Statement of Investment Policy, which is hereby adopted.
-o0o-
I HEREBY CERTIFY that the foregoing Resolution No. 2024 - was passed and adopted by the Council of the City of Wasco at a regular meeting thereof held on June 18, 2024, by the following vote:
COUNCIL MEMBERS: GARCIA, MEDINA, MARTINEZ, REYNA, SALDAÑA AYES:
NOES:
ABSTAIN:
ABSENT:
__________________________________
ALEXANDRO GARCIA
MAYOR of the City of Wasco
Attest: _______________________
__________________________
MARIA O. MARTINEZ, CMC
CITY CLERK and Ex Officio Clerk of
the Council of the City of Wasco
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
I. Introduction
The purpose of this document is to identify various policies and procedures that enhance opportunities for a prudent and systematic investment process and to organize and formalize investment-related activities. Related activities, which comprise sound cash management, include accurate cash flow projections, control of disbursements, expedient collection of revenues, cost effective banking relations and a short-term borrowing program, which coordinates investment opportunity with working capital requirements. The ultimate goal is to enhance the economic status of the City of Wasco while protecting its pooled cash resources.
The investment policies and practices of the City of Wasco are based on state law and prudent money management. All funds will be invested in accordance with the City's Investment Policy and the authority governing investments for municipal governments as set forth in the California Government Code, Sections 53601 through 53659. Any investment s of bond proceeds are to be restricted by the provisions of the relevant bond documents.
II. Scope
It is intended that this policy cover all funds and investment activities of the City. These funds are accounted for in the annual audited financial statements, and include:
O General Fund
O Special Revenue Funds
O Debt Service Funds
O Capital Projects Funds
O Enterprise Funds
O Internal Service Funds
O Fiduciary Funds
This investment policy applies to all City transactions involving the financial assets and related activity of the above-mentioned funds. Any additional funds that may be created from time to time shall also be administered with the provisions of this policy and comply with the current State Government Code.
III. Prudence (Standard of Care)
The City of Wasco operates its pooled idle cash investments under the prudent man rule (Civil Code Section 2261, et. seq.). In addition, Government Code Section 53600.3 provides that those persons to whom investment decisions have been delegated are trustees with a fiduciary responsibility to act as a prudent investor.
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
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
as well as the probable income to be derived. This affords a broad spectrum of investment opportunities as long as the investment is deeded prudent under current law.
The standard of prudence to be used by investment officials shall be the "prudent person" standard and shall be applied in the context of managing an overall portfolio. All persons investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds shall act with care, skill, prudence and diligence under the circumstances then prevailing 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.
It is the City's intent at the time of purchase to hold all investments until maturity to ensure the return of all invested principal dollars but sales prior to maturity are permitted.
IV. Objectives
A. Investment Criteria:
Government Code Section 53600.5 states: “When investing, reinvesting, purchasing, acquiring, exchanging, selling and managing public funds, the primary objective of the trustee shall be to safeguard the principal of funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a return on the funds under its control”.
Simply stated, safety of principal is the foremost objective, followed by liquidity and return on investment (known as yield). Each investment transaction shall seek to first ensure the capital losses are avoided, whether they are from market erosion or security defaults.
The primary objectives, in priority order, of the City's investment activities shall be:
1. Safety - Safety of principal is the foremost objective of the investment program.
The City's investments shall be undertaken in a manner that seeks to ensure preservation of capital in the portfolio. The City shall seek to preserve principal by mitigating the two types of risk: credit risk and market risk. Investment decisions should not incur unreasonable credit or market risks in order to obtain current investment income.
a. Credit Risk: Defined as the risk of loss due to failure by the issuer of a security
b. Market Risk: Defined as the risk of market value fluctuations due to overall changes in the general level of interest rates.
2. Liquidity - The City's investment portfolio will remain sufficiently liquid to enable the City to meet its cash flow requirements. An adequate portion of the portfolio should be maintained in liquid short-term securities which can be converted to cash and guarantee the City’s ability to meet operating expenditures.
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
3. Return on Investment (Yield) - The City's invest ment portfolio shall be designed with the objective of attaining a market rate of return on its’ investments consistent with the constraints imposed by its safety objective and cash flow considerations. Yield is to be a consideration only after the basic requirements of adequate safety and liquidity have been met.
B. Market Rate of Return
The investment portfolio shall be managed to attain a market average rate of return throughout budgetary and economic cycles. This takes into account the City’s cash flow requirements and investment risk constraints, state and local laws and ordinances or resolutions that restrict the placement of short-term funds.
C. Performance Standards
The investment portfolio shall be managed with the objective of producing a yield meeting or exceeding the average return on the one- year U.S. Treasury. This index is considered a benchmark for low to moderate risk investment transactions. Therefore, they comprise a minimum standard for the portfolio’s rate of return. The investment program shall seek to augment returns above this threshold, consistent with risk limitations identified herein and prudent investment principles. This benchmark will be reviewed thoroughly and may be adjusted as required by market conditions to prevent incurring unreasonable risks to attain yield.
D. Diversification
The investment portfolio shall be diversified to prevent incurring unreasonable and avoidable risks regarding specific security types, individual financial institutions or maturity segments.
E. Public Trust
All participants in the investment process shall act responsibly as custodians of the public trust. Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. The overall program shall be designed and managed with a degree of professionalism that is worthy of the public trust.
V. Delegation of Authority
The management and oversight responsibility for the investment program in hereby delegated to the Chief Financial Officer or Treasurer who shall monitor and review all investments for consistency with this investment policy. The Finance Director and Treasurer are authorized to transfer City funds within the accounts established by the City that are held by financial institutions and depositories in order to ensure the daily cash flow needs of City operations. The Chief Financial Officer or Treasurer shall establish procedures to implement and monitor this investment policy. Such procedures shall include explicit delegation of persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the limits of this policy.
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
VI. Ethics and Conflict of Interest
Officers and employees involved in the investment process shall refrain from personal business activities that could conflict with proper execution of the investment program, or that could impair their ability to make impartial decisions.
VII. Selection of Financial Institutions and Broker/Dealers To provide for the optimum yield in the City's portfolio, the City's procedures shall be designed to encourage multiple bids and offers on investment transactions from an approved list of broker/dealers. The Chief Financial Officer or Treasurer shall maintain a list of authorized broker/dealers and financial institutions, which are approved for investment purposes, in the State of California, and it shall be the policy of the City to purchase securities only form authorized institutions or firms. The investment guidelines and procedures shall identify the criteria under which brokers and dealers may qualify to conduct business with the City.
In order to assist in identifying qualified financial institutions, the Chief Financial Officer or Treasurer shall forward copies of the City’s investment policy to those financial institutions with which the City is interested in doing business and will require written acknowledgment of the policy. In addition, all dealers approved to do business with the City shall receive a copy of the Investment Policy annually. Confirmation of receipt of this policy shall signify that the dealer understands the Investment Policy and intends to present only appropriate investments.
VIII. Permitted Investment Instruments
Allowable investment instruments are defined in the Calif ornia Government Code Section 53600 et. seq., as amended. If the Code is further revised to allow additional investments or is changed regarding the limits on certain categories of investments, the City is authorized to conform to these changes, excluding those changes that may be prohibited by this policy.
Where Government Code Section specifies a percentage limitation for a particular category of investments, that percentage is only applicable at the date of purchase.
Investments may be made in the following instruments:
1. Government obligations pledged by the full faith and credit of the United States for the payment of principal and interest.
2. Obligations issued by Agencies or Instrumentalities of the U.S. Government.
3. Repurchase Agreements used solely as short-term investments not to exceed one year.
The following collateral restrictions will be observed: Only U.S. Treasury securities or Federal Agency securities will be acceptable collateral. All securities underlying Repurchase Agreements must be delivered to the City's custodian bank versus payment.
The market value of securities that underlay a Repurchase Agreement shall be valued at 102 percent or greater of the funds borrowed against those securities and the value shall be reviewed on a regular basis and adjusted no less than quarterly. Since the market
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
value of the underlying securities is subject to daily market fluctuations, the investment in repurchase agreements shall be in compliance if the value of the underlying securities is brought back to 102 percent no later than the next business day. Repurchase Agreements are required to be signed with a bank or dealer prior to investment.
4. Banker's Acceptances issued by domestic or foreign banks, which are eligible for purchase by the Federal Reserve System, the short -term paper of which is rated in the highest category by Moody's Investors Services or by Standard & Poor's Corporation.
Purchases of Banker's Acceptances may not exceed 180 days maturity or 40 percent of the City's surplus money. However, no more than $2,000,000 of the City's surplus funds may be invested in the Banker's Acceptance of any one commercial bank.
5. Commercial paper rated in the highest short-term rating category, as provided by Moody's Investors Service, Inc. (P-1) or Standard & Poor's Corporation (A-1) provided that the issuing corporation is organized and operating within the United States, has total assets in excess of $500 million, and has an "A" or higher rating for its long-term debt, (if any, as provided by Moody's or Standard & Poor's).
Purchases of eligible commercial paper may not exceed 270 days maturity nor represent more than $1,000,000 from an issuing corporation.
Purchases of commercial paper may not exceed 15 percent of the City's surplus money that may be invested.
6. Medium term corporate notes of a maximum of five years maturity 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. Medium term corporate notes shall be rated in a rating category of “A” or its equivalent or better by a nationally recognized rating agency.
Investments will be limited to a maximum of 30% of the City's portfolio. The maximum principal amount in any one company will not exceed $1,000,000.
7. FDIC insured or fully collateralized time certificates of deposit in financial institutions located in California, including United States branches of foreign banks licensed to do business in California. The maximum maturity of a time deposit shall not exceed 180 days. All time deposits must be collateralized in accordance with California Government Code section 53651 and 53652, either using:
a) 150% of promissory notes secured by first mortgages and first trust deeds upon improved residential property in California eligible under Section 53601 (m), or b) 110% of eligible marketable securities listed in subsections (a) through (l) and (n).
8. Negotiable certificates of deposit or deposit notes issued by a nationally or state chartered bank or a state or federal savings and loan association or by a state licensed
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
branch of a foreign bank; provided that the senior debt obligations of the issuing institution are rated "AA" or better by Moody's or Standard & Poor's.
Purchase of negotiable certificates of deposit may not exceed 30 percent of the City's surplus money.
9. State of California's Local Agency Investment Fund. (LAIF) Investment in LAIF may not exceed limits as set forth by the LAIF Board and adjusted from time to time. The current per account limit is $75 million per account.
10. Joint Powers Authority Investment Pools organized pursuant to Section 6509.7 of the California Government Code; additionally, the investment pool must meet the requirements set forth in California Government Code Section 53601(p).
11. Shares of beneficial interest issued by diversified management companies (Money Market Mutual Funds) investing in the securities and obligations authorized by sections a through l of Government Code section 53601. To be eligible for investment pursuant to this subdivision these companies shall either: (1) attain the highest ranking letter or numerical rating provided by not less than two of the three largest nationally recognized rating services or (2) have an investment advisor registered with the Securities and Exchange Commission with not less than five years’ experience investing in securities and obligations authorized by Government Code Section 53601 and with assets under management in excess of $500,000,000.
The purchase price of shares shall not exceed 10 percent of the City's surplus money.
Table A summarizes the maximum percentage and maturity limits, plus other constraints, by instrument, established for the City's total pooled funds portfolio.
IX Safekeeping of Securities
To protect against fraud or embezzlement or losses caused by collapse of an individual securities dealer, all securities owned by the City shall be held in safekeeping by a third party bank trust department. Designated third parties shall act as agent for the City under the terms of a custody agreement or PSA agreement (repurchase agreement collateral). All trades executed by a dealer will settle delivery vs. payment (DVP) through the City's safekeeping agent. Original copies on non- negotiable certificates of deposit and confirming copies (safekeeping receipts) of all other investment transactions must be delivered to the City.
Investment officials shall be bonded to protect the public against possible embezzlement or malice.
Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings.
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
X Maximum Maturity
Investment maturities shall be based on a review of cash flow forecasts. Maturities will be scheduled so as to permit the City to meet all projected obligations.
Investments that mature more than five years from the date of purchase cannot occur without prior approval of the City Council or Agency Board. As defined in Government Code Section 53601, “no investment shall be made in any security... that at the time of investment has a term remaining to maturity in excess of five years, unless the legislative body has granted express authority to make that investment either specifically or as a part of an investment approved by the legislative body no less than three months prior to the investment.” XI Ineligible Investments
Certain investments are prohibited under Government Code Sections 53601.6 and 53631.5.
Security types, which are prohibited, include, but are not limited to:
(a) "Complex" derivati ve structures such as range notes, dual index notes, inverse floaters, leveraged or deleveraged floating rate notes, or any other complex variable rate or structured note.
(b) Interest only strips that are derived from a pool of mortgages or any security that could result in zero interest accrual if held to maturity.
(c) Reverse Repurchase Agreements.
Purchasing these types of instruments does not coincide with this Policy’s objectives and would require a thorough review and monitoring of the underlying security.
Although some of these transactions are legal under Government Code, they do not meet the objectives contained herein.
By virtue of the allowable investment in the State or CLASS Pools, the City is investing idle cash with a large number of government agencies. The Pools are managed by outside administrators and are subject of the Government Codes as well as polices put in place by their governing boards. Either Pool’s investment policy may allow for investment in some of the prohibitions noted above for Wasco. Investment in the State and County Pools is permitted, assuming a diminutive portion of their portfolio (10% or less) is tied to the high -risk products noted above. The Chief Financial Officer or Treasurer is responsible to monitor and review the Pooled funds portfolio on an ongoing basis. The City shall take any necessary action should either Pool exceed the allowable 10% limit.
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
XII Reporting Requirements
Pursuant to Government Code Section 53646, the Chief Financial Officer or Treasurer shall render to the City Council and agency board a separate monthly investment report, which shall include, at a minimum, the following information for each individual investment:
- Type of investment instruments (i.e. Treasury Bill, medium term note) - Issuer names (i.e., General Electric)
- Purchase date (trade and settlement date)
- Maturity date
- Par value
- Current rate of interest
- Purchase price
- Current market value and the source of the valuation
- Overall portfolio yield based on cost
- Weighted average days to maturity
This monthly report shall be submitted to the City Council and within 45 days following the end of the month. The monthly report also shall (i ) state compliance of the portfolio to the statement of investment policy, or manner in which the portfolio is not in compliance, (ii) include a description of any of the City's funds, i nvestments or programs that are under the management of contracted parties, including lending programs, and (iii) include a statement denoting the ability of the City to meet its expenditure requirements for the next six months, or provide an explanation as to why sufficient money shall, or may, not be available.
Market value adjustments, as required under Government Accounting Standards Board (GASB) Statement No. 31, are treated as year -end accounting adjustments to the financial records of the City. Monthly investment reports will demonstrate market fluctuations and continue to compare purchase price versus market value status. Accounting adjustments under GASB Statement No. 31, which compare changes to beginning and ending par market value in each fiscal year, are not included as part of monthly investment reports.
XIII Policy Adopting Changes and Updates
The Chief Financial Officer or Treasurer shall annually render to the Council a statement of investment policy, which the Council shall consider at a public meeting.
The policy shall be reviewed annually by the Finance Director and Treasurer to ensure its consistency with the global objective of preservation of investment principal, sufficient liquidity, rate of return and relevance to current laws and financial trends. Any modifications to the policy must be approved by the City Council.
XIV Internal Controls
The Chief Financial Officer or Treasurer shall establish and implement a system of internal controls, which shall be documented in writing. The controls shall be designed to prevent losses of public funds arising from fraud, employee error, and misrepresentation by third
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
parties, unanticipated changes in financial markets or imprudent actions by employees and officers of the City.
XV Depositories
The Chief Financial Officer or Treasurer shall establish selection criteria for pre- approval of institutions that do business with the City of Wasco. To qualify for consideration, an institution must have an office in California and that office must perform the transactions with the City.
The Chief Financial Officer or Treasurer will maintain a listing of approved institutions.
XVI Risk Tolerance
The City recognizes that investment risk can result from issuer defaults, market price changes or various technical complications leading to temporary illiquidity. Portfolio diversification is employed as a way to minimize and control these risks.
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
GLOSSARY OF TERMS
Bankers' Acceptances - negotiable time drafts or bills of exchange drawn on and accepted by a commercial bank. Acceptance of the draft obligates the bank to pay the bearer the face amount of the draft at maturity. In addition to the guarantee by the accepting bank, the transaction is identified with a specific commodity. The sale of the underlying goods will generate the funds necessary to liquidate the indebtedness. Banker's Acceptances are usually created to finance the import and export of goods, the shipment of goods within the United States and the storage of readily marketable staple commodities. Banker's Acceptances are sold at a discount from par and the amount and maturity dates are fixed. Bankers' Acceptances have the backing of both the bank and the pledged commodities with no known principal loss in over 70 years. State law permits cities to invest up to 40% in bankers' acceptances.
Certificate of Deposit - A deposit insured up to $250,000 by the FDIC at a set rate for a specified period of time.
Collateral - Securities, evidences of deposit or pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposit of public moneys.
Corporate Medium-Term Notes - Unsecured promissory notes issued by corporations operating within the United States. The notes mature in one to five year periods. Purchase of these notes may not exceed 30% of the City's portfolio and the notes must have at least an "A" rating by a nationally recognized rating service.
Commercial Paper - An unsecured promissory note of industrial corporations, utilities and bank holding companies having assets in excess of $500 million and an "A" or higher rating for the issuer's debentures. Interest is discounted from par and calculated using the actual number of days on a 360- day year. The notes are in bearer form, mature from one to 270 days and generally start at $100,000. There is a secondary market for commercial paper and an investor may sell them prior to maturity. Unused lines of credit back commercial paper from major banks.
State law permits cities to invest up to 30% in commercial paper.
Credit Risk - Defined as the risk of loss due to failure of the issuer of a security. This loss shall be mitigated by investing in investment grade securities and by diversifying the investment portfolio so that the failure of any one issuer does not unduly harm the City's capital base and cash flow.
Current Yield - The interest paid on an investment expressed as a percentage of the current price of the security.
Custody - A banking service that provides safekeeping for the individual securities in a customer's investment portfolio under a written agreement which also calls for the bank to collect and pay out income, to buy, sell, receive and deliver securities when ordered to do so by the principal.
Delivery vs. Payment (DVP) - Delivery of securities with a simultaneous exchange of money for the securities.
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
Fannie Mae - Trade name for the Federal National Mortgage Association (FNMA), a United States sponsored corporation.
Federal Reserve System - The central bank of the United States which consists of a seven- member Board of Governors, 12 regional banks and 5,700 commercial banks that are members.
Federal Deposit Insurance Corporation (FDIC) - Insurance provided to customers of a subscribing bank that guarantees deposits to a set limit (currently $250,000) per account.
Freddie Mac - Trade name for the Federal Home Loan Mortgage Corporation (FHLMC), a United States sponsored corporation.
Ginnie Mae - Trade name for the Government National Mortgage Association (GNMA), a direct obligation bearing the full faith and credit of the United States Government.
Interest Rate - The annual yield earned on an investment, expressed as a percentage.
Liquidity - Refers to the ability to rapidly convert an investment into cash.
Local Agency Investment Fund (LAIF) Demand Deposit - Was established by the state to enable treasurers to place idle funds in a pool for investment. Each agency is currently limited by LAIF to an investment of $75 million plus any bond proceeds.
Market Risk - Defined as market value fluctuations due to overall changes in the general level of interest rates. Adverse fluctuation possibilities shall be mitigated by limiting the maximum maturity of any one security to five years, structuring the portfolio based on historic and current cash flow analysis, and eliminating the need to sell securities prior to maturity. Also, avoiding the purchase of long-term securities for the sole purpose of short-term speculation mitigates marker risk.
Market Value - The price at which a security is trading and could presumably be purchased or sold.
Maturity - the date the principal or stated value of an investment becomes due and payable.
Portfolio - Collection of securities held by an investor.
Purchase Date - The date in which a security is purchased for settlement on that or a later date.
Rate of Return - The yield obtainable on a security based on its purchase price or its current market price. This may be the amortized yield to maturity on a bond or the curr ent income return.
Repurchase Agreement (REPO) - Are contractual arrangements between a financial institution or dealer and an investor. The investor puts up their funds for a certain number of
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
days at a stated yield. In return, they take title to a given block of securities as collateral. At maturity, the securities are repurchased and the funds are repaid with interest.
Reverse Repurchase Agreement (Reverse REPO) - A transaction where the seller (City) agrees to buy back from the buyer (bank) the securities at an agreed upon price after a stated period of time.
Sallie Mae - Trade name for the Student Loan Marketing Association (SLMA), a United States sponsored corporation.
Treasury Bills - United States Treasury Bills which are short term, direct obligations of the United States Government issued with original maturities of 13 weeks, 26 weeks and 52 weeks; sold in minimum amounts of $10,000 in multiples of $5,000 above the minimum.
Issued in book entry form only. T-bills are sold on a discount basis.
United States Government Agencies - Instruments issued by various United States Government Agencies most of which are secured only by the credit worthiness of the particular agency.
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
Permitted Investments
Table A
State Code City Policy Maximum
Legal Limit Legal Limit Maturity City Policy Permitted Investments (% or $) (% or $) Constraints Other Constraints U.S. Government
Obligations
Unlimited Unlimited 5 years * None
U.S. Government
Agencies &
Unlimited Unlimited 5 years * None
Repurchase
Agreements
Unlimited Unlimited 1 year 102% Market value on
underlying securities
Bankers
Acceptances
40% 40% 180 days No more than $2,000,000
invested in any one
commercial bank
Commercial Paper 30% 30% 270 days U.S. Corporations with assets in excess of $500,000,000; “A”
debt rating; maximum of
$1,000,000 from an issuing
corporation
Medium-Term
Corporate Notes
30% 30% 5 years U.S. Corporations; “A” debt
rating maximum of $1,000,000
per issuing company
Certificates of
Deposit
Unlimited Unlimited 5 years * Must be collateralized to 110% of the CD value by other eligible
securities or 150% by
promissory notes secured by
California Deeds & mortgages
Negotiable
Certificates of
Deposit
30% 30% 5 years * State and Federally chartered
banks and savings institutions,
“AA” rating by one agency
LAIF State Pool $75,000,000 ** $75,000,000 ** N/A Limited to 10 transactions per month, per account, per State
Policy
Mutual Funds 15% 10% N/A Funds invested as defined in
Section 53601 (a) to (l); highest
debt rating from 2 of top 3
national rating services OR
investment advisor registered
with SEC for at least 5 years
and assets under management
in excess of $500,000,000.
CITY OF WASCO
INVESTMENT POLICY Revised 6/2023
Joint Powers
Authority
Investment Pools
as Authorized by
Government Code
53601(p)
Unlimited Unlimited or
any %
restriction
Council
chooses to
set
N/A Stable Net Asset Value (NAV)
funds must be rated AAAm.
Variable NAV funds must be
rated a minimum of AAf/S1.
*Maximum terms unless the City Council expressly authorizes longer maturities and within the prescribed time frame for said approval.
**Not set by Government Code, but instead by LAIF Governing Board.
DocuSign Envelope ID: DFBE6B9A- 414E- 4025- 979E- 42FD44792E95 RESOLUTION NO, 2022 - 3720
A RESOLUTION OF Inc CITY COUNCIL OF THE CITY OF WASCO DECLARING THERE ARE NO
UNMET TRANSIT NEEDS THAT CAN REASONABLY BE MET WITHIN THE CITY OF WASCO WHEREAS, the City Council of the City of Wasco, on April 19, 2022, conducted a public hearing for the purpose of receiving oral and written testimony regarding unmet transit needs for the incorporated area of the City of Wasco; and WHEREAS, pursuant to Public Utilities Code 99401. 5, Kern Council of Governments ( Kern COG) is required to establish and define the terms " unmet transit needs." Kern COG Resolution 90-04 defines " unmet transit needs" as follows: " An unmet transit need exists if an individual of any age or physical condition is unable to transport himself or herself due to deficiencies in the existing transportation system. Excluded are 1) Those requests for minor operational improvements and 2) Those improvements funded and scheduled for implementation in the following year. The term " reasonable to meet" is defined: A) Operational Feasibility: The requested improvement must be safe to operate, and there must be adequate roadways for transit vehicles; B) Duplication of Service: The proposed service shall not duplicate other transit services; C) Timing: The proposed service shall be in response to an existing rather than a future need; and D) Service must meet the legally required farebox ratio ( PUC Sections 99268. 2, 99268. 5 and CAC Sections 6633. 2, 6633. 5) with fares close to fares of similar service."; and,
WHEREAS, a public hearing was duly advertised and held on April 19, 2022, to receive public comments regarding unmet transit needs that are reasonable to meet; and, WHEREAS, the City of Wasco is required to submit findings from the annual unmet transit needs public hearing to Kern COG by the end of April 2022, NOW THEREFOREBEITRESOLVED, by the City Council of the City of Wasco as follows:
SECTION1: That it does hereby find that within the City of Wasco, there are no unmet transit needs that can be reasonably met through modification or expansion of the Wasco transportation system.
SECTION 2: The City claims its share of Transportation Development Act Funds for FY 2022-2023.
SECTION3: TheAdministrative Manager isdirected to submit thisfinding and the supporting documentation to Kern COG.
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ORIGINAL
DocuSign Envelope ID: DFBE6B9A- 414E- 4025- 979E- 42FD44792E95 HEREBYCERTIFYthat the foregoing Resolution No. 2022 - 3720 was passed and adopted by the Council of the City of Wasco at a regular meeting thereof held on April 19, 2022,_by the following vote:
COUNCIL MEMBERS:
AYES:
NOES:
ABSTAIN:
ABSENT:
4/ 21/ 2022
Attest:
REYNA, PALLARES, GARCIA, LYNCH, MARTINEZ
NONE
NONE
NONE
DocuSi ne
MARIA O. MARTINEZ
CITY CLERK and Ex Officio Clerk of
the Council of the City of Wasco
DocuSfgned by:
GILBERTO REYNA,
MAYOR of the City of Wasco
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DocuSign Envelope ID: 935E2048- 3636- 442A- BBFA- 46D207F89020
MINUTES
WASCO CITY COUNCIL
and Successor Agency to the
Former Redevelopment Agency
and the Wasco Public Finance Authority
Tuesday, April19, 2022Regular
Meeting - 6: 00p. m. Via
ZoomWebinarREGULAR
MEETING - 6: 00pm 1)
CALLTO ORDER: This
meetingwas calledto orderby MayorReyna at 6: 08p. m. andannouncedthe meetingwas beingheld Pursuantto AB361issuedby GovernorNewsom on September 20, 2021, and GovernmentCode 54953( e). All membersare joiningthis meetingremotely via ZoomWebinar, 2)
ROLLCALL: Present:
Mayor Reyna, Mayor Pro TemPallares, Council Members: Garcia, Lynch, Martinez Deputy
City ClerkFlores informedthe councilthere was a requestfor interpretationin Spanish for this meetingand gave instructionson howto selectthe languagefor interpretation.
The
translatorthen proceededto conductthe Spanishtranslation. 3) FLAGSALUTE: Led by MayorReyna 4)
INVOCATION: by PaulHernandez, Freewill Baptist Church. 5) Approvalto continueto holdall CityCouncilmeetings until furthernotice by teleconference pursuant to AssemblyBill 361and GovernmentCode Section54953( e) 1 and findingthat thereis a proclaimedstate of emergencyin thestateand city and that state and localofficialshave recommendedmeasures to promotesocial distancing, all as requiredin AB361 and Section54953( e). ( Hurlbert) City ManagerHurlbert gave an oralreport. No
publiccommentsMotion
was madeby CouncilMember Garcia, secondedby CouncilMember Lynch, to approve holding all CityCouncilmeetingsby teleconferencepursuant to AB361until further notice by thefollowingroll callvote: AYES:
REYNA, PALLARES, GARCIA, LYNCH, MARTINEZNOES:
NONE ABSTAIN:
NONE ABSENT:
NONE City
of WascoCity CouncilRegular Meeting Minutes, April 19, 2022 DocuSign Envelope ID: 935E2048- 3636- 442A- BBFA- 46D207F89020 6) PRESENTATIONS:
a. Community Service Award Recognition to Sharon Nicol and Nancy Waterhouse Mayor Reyna presented the recognition certificate to Sharon Nicol and Nancy Waterhouse.
Mayor Reyna mentioned that Fire Chief Appleton has requested that his item be moved after the presentations.
15) REPORTS FROM THE PUBLIC SAFETY DEPARTMENTS:
a. Kern County Fire Department ( Appleton)
Fire Chief Joe Appleton gave an oral report.
7) PUBLIC COMMENTS: None
8) SUCCESSOR AGENCY BUSINESS: None
9) WASCO PUBLIC FINANCE AUTHORITY BUSINESS: None
CITY COUNCIL BUSINESS:
10) CONSENT CALENDAR:
The Consent Calendar consists of items that, in the staff' s opinion, are routine and non- controversial. These items are approved in one motion unless a Council Member or member of the public requests the removal of a particular item. a. Approval of City Council Special Meeting Minutes for April 2, 2022 b. Receive and file departments bill pay totaling $ 1,602, 273. 97 c. Adopt a Resolution Approving the Amended City Annual Calendar for the 2022 Calendar Year.
Reso# 2022- 3718
d. Adopt A Resolution Approving the Submittal of an Application to PG& E Better Together Giving Program and Authorize the City Manager or his Designee as the Signature Authority for the Execution of the Grant Agreement and any Amendments Thereto.
Reso# 2022- 3719
No public comments.
Motion was made by Mayor Reyna, seconded by Council Member Lynch, to approve the Consent Calendar by the following roll call vote:
AYES: REYNA, PALLARES, GARCIA, LYNCH, MARTINEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
City of Wasco City Council Regular Meeting Minutes, April 19, 2022 DocuSign Envelope ID: 935E2048- 3636- 442A- BBFA- 46D207F89020 11) PUBLIC HEARINGS:
a. Conduct a public hearing to receive oral comments
needs, consider comments, if any, and adopt Resolution
Needs Finding for the Fiscal Year 2022-2023.
Reso# 2022- 3720
City Clerk Martinez gave an oral presentation.
Mayor Reyna opened the public hearing at 6:33 pm.
No public comments.
Mayor Reyna closed the public hearing at 6:34 pm.
concerning unmet transit
Establishing Unmet Transit
Motion was made by Council Member Garcia, seconded by Mayor Reyna, to approve item 11a by the following roll call vote:
AYES: REYNA, PALLARES, GARCIA, LYNCH, MARTINEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
b. Conduct a Public Hearing and Adopt a ResolutionApproving the 5-year solid waste rate adjustment schedule for customers of record ( property owners or tenants).
Reso# 2022- 3721
Comments by City Manager Hurlbert.
Mayor Reyna opened the public hearing at 6:40 pm.
No public comments.
Mayor Reyna closed the public hearing at 6:41 pm.
City Clerk Martinez explained the tabulation processand mentioned there would be no attempts to validate the protest letters at the time of tallying the letters, only to determine the number of protest letters received. She stated that there were a total of net parcels of 5,474, and to reach a majority of protests, a total amount of 50%+ 1, which is2,738 protest letters, would be required.
City ClerkMartinezproceeded to tally the protestletters. An insufficientmajorityof protest letterswere received, totaling 183, and ended the protest process.
Motion was made by Council Member Garcia, seconded by Council Member Martinez, to adopt a Resolution approving the 5-year solid waste rate adjustment schedule for customers of record by the following roll call vote:
AYES: REYNA, PALLARES, GARCIA, LYNCH, MARTINEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
City of WascoCity Council RegularMeeting Minutes, April 19, 2022 DocuSign Envelope ID: 935E2048- 3636- 442A- BBFA- 46D207F89020 Mayor Reyna adjourned the meeting for a five- minute recess at 7:22 pm.
Mayor Reyna resumed the meeting at 7:28 pm.
12) DEFERRED BUSINESS:
a. Adopt a Resolution upholding or a Resolution overturning the City of Wasco Planning Commission' s decision to deny an extension request for Conditional Use Permit 18- 06, A Conditional Use Permit to allow off - site alcohol sales at a new 24- hour convenience store and service station at 1300 Highway 46. ( Cobb) Reso# 2022- 3722
Oral report by Community Development Director Cobb.
Public comments by:
Gary Langley
Anthony Oliveri
Commissioner Ward and Commissioner Clendenen explained the reasons the Planning Commission denied an extension request for Conditional Use Permit 18-06, Motion was made by Mayor Reyna, seconded by Council Member Garcia, to overturn the Planning Commission' s decision to deny an extension request for Conditional Use Permit 18- 06, A Conditional Use Permit to allow off - site alcohol sales at a new 24-hour convenience store and service station at 1300 Highway by the following roll call vote:
AYES: REYNA, GARCIA, LYNCH
NOES: PALLARES, MARTINEZ
ABSTAIN: NONE
ABSENT: NONE
13) NEW BUSINESS:
a. Nomination and Appointment of a Representative and Alternate Representative to serve on the San Joaquin Valley Air Pollution Control District Special City Selection Committee.
Oral presentation by City Clerk Martinez.
No public comments.
Mayor Reyna nominated Council Member Martinez for the Alternate position and affirmed Council Member Garcia as the Representative.
Motion was made by Mayor Reyna, seconded by Council Member Garcia, to appoint Council Member Garcia as a Representative and to appoint Council Member Martinez as an Alternative to serve on the San Joaquin Valley Air Pollution Control District Special City Selection Committee by the following roll call vote:
AYES: REYNA, PALLARES, GARCIA, LYNCH, MARTINEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
City of Wasco City Council Regular Meeting Minutes, April 19, 2022 DocuSign Envelope ID: 935E2048- 3636- 442A- BBFA- 46D207F89020 b. Nomination and Appointment of second Council Member to serve on an ad hoc Council Committee regarding California High -Speed Rail Authority issues.
City Manager Hurlbert gave an oral presentation.
No public comments.
Council Member Martinez nominated Council Member Lynch to serve on the ad hoc committee.
Motion was made by Council Member Martinez, seconded by Council Member Garcia, to appoint Council Member Lynch to serve on the ad hoc Council Committee regarding California High -Speed RailAuthority issuesby the following roll call vote:
AYES: REYNA, PALLARES, GARCIA, LYNCH, MARTINEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
c. Receive updates regarding California High -Speed Rail Authority issues, and authorize the City Manager to continue agreement negotiations. ( Hurlbert) PowerPoint presentation by City Manager Hurlbert
Wasco High - Speed Rail April 2022 Update
No public comments.
Informational item only; no action
14) REPORTS FROM COMMISSION AND COMMITTEES:
a. Kern Economic Development Corporation ( Garcia)
No reports
b. Kern Council of Government ( Reyna)
No reports
c. Wasco Task Force ( Martinez & Reyna)
No reports
15) REPORTS FROM THE PUBLIC SAFETY DEPARTMENTS:
a. Kern County Fire Department ( Appleton)
per Chief Appleton' srequest item 15a was presented after item 6a. b. Kern County Sheriff Department ( Shinn)
Sargent Shinn gave a PowerPoint presentation on recent crimes.
Announced on Thursday, April 28, 2022, Wasco deputies will be City of Wasco City Council Regular Meeting Minutes, April 19, 2022 DocuSign Envelope ID: 935E2048- 3636- 442A- BBFA- 46D207F89020 16) REPORTS FROM THE CITY MANAGER:
City Manager Hurlbert updated the council on the following.
Dial A Ride is on track for a soft start next month, and staff continues to recruit for an additional driver and implement a new dispatch system.
Staff received an evaluation camera system and installed it to begin testing the equipment during the soft opening. If all goes well, the equipment can be ordered and moved to the new electric vans once we receive them in the future.
Attended the League of California Cities General Membership Meeting in Coalinga, California, on Thursday, April 14, 2022, with Mayor Pro Tem Pallares and Council Members Garcia and Lynch.
Notified he had been accepted to the League of California Cities City Managers Working Group on the Sales Tax Reform Committee.
17) REPORTS FROM THE CITY COUNCIL:
Mayor Pro Tem Pallares:
Thanked the Public Works Department staff for repairing a water line break at a residence in hisdistrict and provided a temporary repair for the resident' sdriveway.
Council Member Garcia:
Thanked Sergeant Shinn for his report presentation. He suggests discussion at a future meeting regarding tools to be proactive for catalytic converters' thefts.
Council Member Lynch:
Attended the League of California Cities General Membership Meeting in Coalinga, California, on Thursday, April 14, 2022, with City Manager Hurlbert, Mayor Pro Tem Pallares, and Council Member Garcia
Council Member Martinez:
The deadline to submit the Veteran' s Banner Program application will be the last day of April 2022. Encouraged the public to sponsor a Veteran' s banner at 80 dollars each for Deputy Sheriff Phillip Campas and local Wasco residents.
Mayor Reyna:
Announced six additional Veterans banner applications received before the last deadline.
Attended the Rose Garden Project on Saturday, April 9, 2022, and thanked Sharon Nicol, Nancy Waterhouse, and all the volunteers for their hard work.
Thanked staff for their hard work with reports and preparing for the meeting.
Mayor Reyna adjourned into Closed Session at 8: 55 PM.
Mayor Reyna adjourned out of Closed Session at 9: 21 PM.
Council Member Garcia logged off at 9:21 PM after the Closed Session and did not join the Regular session.
18) CLOSED SESSION:
a. Approved Closed Session meeting minutes for March l , 20220 b. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph ( 2) of subdivision ( d) and paragraph ( 1) of subdivision ( e) of Section 54956.9
City of Wasco City Council Regular Meeting Minutes, April 19, 2022 DocuSign Envelope ID: 935E2048- 3636- 442A- BBFA- 46D207F89020 19) CLOSED SESSION ACTION:
City Attorney Schroeter reported out.
a. Approved Closed Session meeting minutes for March l , 2022.
Motion was made by Mayor Reyna, seconded by Council Member Garcia, to approve the March 1, 2022, Closed SessionMeeting Minutes by the following roll call vote:
AYES: REYNA, PALLARES, GARCIA, LYNCH, MARTINEZ
NOES: NONE
ABSTAIN: NONE
ABSENT: NONE
b. CONFERENCE WITH LEGAL COUNSEL - ANTICIPATED LITIGATION Significant exposure to litigation pursuant to paragraph ( 2) of subdivision ( d) and paragraph ( 1) of subdivision ( e)
20) ADJOURNMENT:
of Section 54956. 9
Mayor Reyna adjourned the meeting at 9:24 p. m.
n—
DMocuSigned by:
14c t Tcol, Y
q uvmvio v4in...
Monica Fores, Deputy City Clerk
DocuSigned by:
GilbertoJReyria, Mayor
City of Wasco City Council Regular Meeting Minutes, April 19, 2022