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2023 Sept 05 CC PACKETAGENDA EL SEGUNDO CITY COUNCIL REGULAR MEETING TUESDAY, SEPTEMBER 5, 2023 4:00 PM CLOSED SESSION 6:00 PM OPEN SESSION CITY COUNCIL CHAMBER 350 MAIN STREET, EL SEGUNDO, CA 90245 Drew Boyles, Mayor Chris Pimentel, Mayor Pro Tern Carol Pirsztuk, Council Member Lance Giroux, Council Member Ryan W. Baldino, Council Member Tracy Weaver, City Clerk Matthew Robinson, City Treasurer Executive Team Darrell George, City Manager Barbara Voss, Deputy City Manager Jaime Bermudez, Police Chief Michael Allen, Community Development Dir. Jose Calderon, IT Director Aly Mancini, Recreation, Parks & Library Dir. Mark Hensley, City Attorney David Cain, Interim CFO Robert Espinosa, Interim Fire Chief Rebecca Redyk, HR Director Elias Sassoon, Public Works Dir. MISSION STATEMENT: "Provide a great place to live, work, and visit." VISION STATEMENT: "Be a global innovation leader where big ideas take off while maintaining our unique small-town character." 1 Page 1 of 93 The City Council, with certain statutory exceptions, can only act upon properly posted and listed agenda items. Any writings or documents given to a majority of City Council regarding any matter on this agenda that the City received after issuing the agenda packet are available for public inspection in the City Clerk's Office during normal business hours. Such documents may also be posted on the City's website at www.elsegundo.org and additional copies will be available at the City Council meeting. Unless otherwise noted in the agenda, the public can only comment on City -related business that is within the jurisdiction of the City Council and/or items listed on the agenda during the Public Communications portions of the Meeting. Additionally, members of the public can comment on any Public Hearing item on the agenda during the Public Hearing portion of such item. The time limit for comments is five (5) minutes per person. Those wishing to address the City Council are requested to complete and submit to the City Clerk a "Speaker Card" located at the Council Chamber entrance. You are not required to provide personal information in order to speak, except to the extent necessary for the City Clerk to call upon you, properly record your name in meeting minutes and to provide contact information for later staff follow-up, if appropriate. When a Council Member duly requires AB 2449 teleconferencing to attend the City Council meeting the public will also be able to access the meeting and provide public comment via Zoom. To access Zoom from a PC, Mac, iPad, iPhone, or Android device, use URL https://zoom.us/m/ 81951332052 and enter PIN: 903629 or visit www.zoom.us on device of choice, click on "Join a Meeting" and enter meeting ID: 81951332052 and PIN: 903629. If joining by phone, dial 1-669-900-9128 and enter meeting ID and PIN. To reiterate, attending a City Council meeting by Zoom will only be used when AB 2449 is used. NOTE: Your phone number is captured by the Zoom software and is subject to the Public Records Act, dial *67 BEFORE dialing in to remain anonymous. Members of the public will be placed in a "listen only" mode and your video feed will not be shared with City Council or members of the public. REASONABLE ACCOMMODATIONS: In compliance with the Americans with Disabilities Act and Government Code Section 54953(g), the City Council has adopted a reasonable accommodation policy to swiftly resolve accommodation requests. The policy can also be found on the City's website at https.11www.elsegundo.or_q/govemmentldepartments/city-clerk. Please contact the City Clerk's Office at (310) 524-2308 to make an accommodation request or to obtain a copy of the policy. 2 Page 2 of 93 4:00 PM CLOSED SESSION — CALL TO ORDER / ROLL CALL PUBLIC COMMUNICATION — (RELATED TO CITY BUSINESS ONLY — 5-MINUTE LIMIT PER PERSON, 30-MINUTE LIMIT TOTAL) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow City Council to take action on any item not on the agenda. City Council and/or City Manager will respond to comments after Public Communications is closed. SPECIAL ORDERS OF BUSINESS RECESS INTO CLOSED SESSION: City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et seq.) for purposes of conferring with City's Real Property Negotiator; and/or conferring with City Attorney on potential and/or existing litigation; and/or discussing matters covered under Government Code Section §54957 (Personnel); and/or conferring with City's Labor Negotiators. CONFERENCE WITH CITY'S LABOR NEGOTIATOR (GOV'T CODE §54957.6): -2- MATTER(S) Employee Organizations: Police Management Association (PMA) and Fire Fighter Association (FFA). Representative: City Manager, Darrell George, Human Resources Director, Rebecca Redyk, Laura Droltz Kalty, and Alex Volberding 6:00 PM — CONVENE OPEN SESSION — CALL TO ORDER / ROLL CALL INVOCATION — Rabbi Dovid Lisbon, Jewish Community Center PLEDGE OF ALLEGIANCE — Council Member Baldino SPECIAL PRESENTATIONS 1. Young Entrepreneurs of El Segundo Commendation 2. ESHS Boys Volleyball Commendation PUBLIC COMMUNICATIONS — (RELATED TO CITY BUSINESS ONLY — 5 MINUTE LIMIT PER PERSON, 30 MINUTE LIMIT TOTAL) Individuals who have received value of $50 or more to communicate to the City Council on behalf of another, and employees speaking on behalf of their employer, must so identify themselves prior to addressing the City Council. Failure to do so shall be a misdemeanor and punishable by a fine of $250. While all comments are welcome, the Brown Act does not allow Council to take action on any item not on the agenda. The Council will respond to comments after Public Communications is closed. 3 Page 3 of 93 CITY MANAGER FOLLOW-UP COMMENTS — (Related to Public Communications) • Hyperion Water Reclamation Plant Update A. PROCEDURAL MOTIONS Read All Ordinances and Resolutions on the Agenda by Title Only Recommendation - Approval B. CONSENT 3. City Council Meeting Minutes Recommendation - 1. Approve Regular City Council meeting minutes of August 15, 2023. 2. Alternatively, discuss and take other action related to this item. 4. Warrant Demand Register for July 10, 2023 through July 16, 2023 Recommendation - 1. Ratify payroll and employee benefit checks, checks released early due to contracts or agreements, emergency disbursements and/or adjustments, and wire transfers. 2. Approve Warrant Demand Register numbers 2A: warrant numbers 3046505 through 3046568. 3. Alternatively, discuss and take other action related to this item. 5. Fiscal Year 2023-24 Adopted Budget Increase for Fiscal Year 2022-23 Continuing Appropriations Recommendation - 1. Approve continuing appropriations from FY 2022-23 to FY 2023-24, thereby amending the Fiscal Year 2023-24 Adopted Budget in the Funds and by the amounts contained in Attachment A. 2. Alternatively, discuss and take other action related to this item. 0 Page 4 of 93 6. Second Reading of an Ordinance Amending El Segundo Municipal Code Chapter 1-6 (Personnel Merit System) to Expand List of Positions Exempt from the Civil Service Svstem Recommendation - Conduct a second reading and adopt the proposed Ordinance amending El Segundo Municipal Code Chapter 1-6 to expand the list of positions exempt from the Civil Service System. 2. Alternatively, discuss and take other action related to this item. 7. Purchase of Three Replacement Police Vehicles Recommendation - Authorize waiving the formal bidding requirements pursuant to El Segundo Municipal Code § 1-7-9(A) to replace two police K9 patrol vehicles originally due for replacement in September 2020 and a Sergeant's patrol vehicle due for replacement in September 2024 for $162,497.90, with an additional $24,374.69 as a contingency fund for potential unforeseen supply chain issues. 2. Authorize Public Works to auction three police vehicles following their replacement. 3. Authorize the City Manager to execute any necessary agreements or associated documents necessary to complete the purchase of three police vehicles and auction of the vehicles to be replaced. 4. Alternatively, discuss and take other action related to this item. C. PUBLIC HEARINGS D. STAFF PRESENTATIONS 8. S&P Global Ratings Increase of El Segundo's Long -Term Credit Rating to "AAA" from "AA+" Recommendation - Receive and file Standard and Poor's Global (S&P) Rating report and letter for the City of El Segundo's August 8, 2023 credit rating upgrade to "AAA." 2. Alternatively, discuss and take other action related to this item. 5 Page 5 of 93 9. Resolution to Waive Fees Associated with the World Series Championship Parade and Team Recognition Ceremony for the El Segundo Little League Recommendation - 1. Pursuant to El Segundo Municipal Code § 8-8-7(D), adopt the proposed resolution to waive all fees for the El Segundo Little League championship parade on September 10, 2023. 2. Alternatively, discuss and take other action related to this item. E. COMMITTEES, COMMISSIONS AND BOARDS PRESENTATIONS F. REPORTS - CITY CLERK G. REPORTS - CITY TREASURER 10. Investment Portfolio Report for June 2023 Recommendation - 1. Receive and file the Investment Portfolio Report dated June 2023. 2. Alternatively, discuss and take other action related to this item. H. REPORTS - COUNCIL MEMBERS COUNCIL MEMBER BALDINO COUNCIL MEMBER GIROUX COUNCIL MEMBER PIRSZTUK MAYOR PRO TEM PIMENTEL MAYOR BOYLES I. REPORTS - CITY ATTORNEY J. REPORTS/FOLLOW-UP - CITY MANAGER CLOSED SESSION The City Council may move into a closed session pursuant to applicable law, including the Brown Act (Government Code Section §54960, et seq.) for the purposes of conferring with the City's Real Property Negotiator; and/or conferring with the City Attorney on potential and/or existing litigation; and/or discussing matters covered under Government Code Section §54957 (Personnel), and/or conferring with the City's Labor Negotiators. REPORT OF ACTION TAKEN IN CLOSED SESSION (if required) MEMORIALS 0 Page 6 of 93 ADJOURNMENT POSTED: DATE: August 30, 2023 TIME: 5:30 PM BY: Tracy Weaver, City Clerk Page 7 of 93 MEETING MINUTES OF THE EL SEGUNDO CITY COUNCIL TUESDAY, AUGUST 15, 2023 CLOSED SESSION — Mayor Boyles called the meeting to order at 4:30 PM due to lack of quorum at 4:00 PM 001111111110N_1II Mayor Boyles - Present Mayor Pro Tern Pimentel - Present Council Member Pirsztuk - Present Council Member Giroux - Present Council Member Baldino - Present PUBLIC COMMUNICATION — (Related to City Business Only — 5-minute limit per person, 30-minute limit total) SPECIAL ORDER OF BUSINESS: Mayor Boyles announced that Council would be meeting in closed session pursuant to the items listed on the agenda. CONFERENCE WITH LEGHAL COUNSEL — EXISTING LITIGATION (GOV'T CODE §54956.9(D)(1): -5- MATTER(S) 1. City of El Segundo v. Wiseburn Unified School District, Los Angeles Superior Court Case No. 23TRCV01031. 2. Retired Police Officer Rex Flower Workers Compensation Claim (WCAB) No.: ADJ7459554). 3. Retired Police Officer Kenneth McShane Workers Compensation Claim (WCAB) No.: ADJ 11083019). 4. Retired Police Officer Darrell Lewis Workers Compensation Claim (WCAB) No.: ADJ9634084). 5. Retired Fire Fighter Scott Marinez Workers Compensation Claim (WCAB) No.: ADJ2810794). CONFERENCE WITH CITY'S LABOR NEGOTIATOR (Government Code §54957.6): - 2- MATTER(S) 1. Employee Organizations: Police Management Association (PMA) and Fire Fighter Association (FFA). Representative: City Manager, Darrell George, Human Resources Director, Rebecca Redyk, Laura Droltz Kalty, and Alex Volberding. EL SEGUNDO CITY COUNCIL MEETING MINUTES AUGUST 15, 2023 PAGE 1 Page 8 of 93 Adjourned at 5:50 PM OPEN SESSION — Mayor Boyles called to order at 6:01 PM ROLL CALL Mayor Boyles - Present Mayor Pro Tern Pimentel - Present Council Member Pirsztuk - Present Council Member Giroux - Present Council Member Baldino - Present INVOCATION — Council Member Pirsztuk _1��xe11_V[�1��.1�1'iT.11�►�[ai�1OM39711 0 2 Ii SPECIAL PRESENTATIONS: 1. Proclamation read by Council Member Baldino, honoring the Diamond Jubilee birthday, celebrating 75 years of immeasurable contributions, and inspiring our community. Mark Herbert, Library Manager received the proclamation. PUBLIC COMMUNICATIONS — (Related to City Business Only — 5-minute limit per person, 30-minute limit total) Marsha Hansen — 2023 Main Street Car Show invitation for all, Saturday, August 19, 2023. Brett Moore — Resident commented on Arts & Culture Advisory Committee Land Acknowledgement Kristen Dorsey — Resident commented on Arts & Culture Advisory Committee Land Acknowledgement Debbi Shrum — Resident commented on Hilltop Park CITY MANAGER FOLLOW-UP COMMENTS: Darrell George, City Manager gave an update on the Hyperion Water Reclamation Plant. Printed information was provided on day of meeting, the printed material was posted to the City's website and made available to the public at the meeting. City of El Segundo received a Financial AAA Credit Rating, former CFO, Joe Lillio here to speak on rating that City received. A. Read all Ordinances and Resolutions on the Agenda by Title Only. MOTION by Council Member Giroux, SECONDED by Council Member Pirsztuk to read all ordinances and resolutions on the agenda by title only. MOTION PASSED BY A UNANIMOUS VOICE VOTE. 5/0 EL SEGUNDO CITY COUNCIL MEETING MINUTES AUGUST 15, 2023 PAGE 2 Page 9 of 93 B. CONSENT: 2. Approve Special (CCB Interviews) City Council meeting minutes of June 16, 2023, Regular City Council meeting minutes of June 20, 2023, Special (Open Session) City Council meeting minutes of June 28, 2023, Special (Joint with ESUSD-Team Building) City Council meeting minutes of June 28, 2023, Special (CCB Interviews) City Council meeting minutes of July 10, 2023 and Special (Closed Session) City Council meeting minutes of July 12, 2023. (Fiscal Impact: None) 3. Approve warrants demand register for May 29 through July 9, 2023, numbers 23A, 23B, 24A, 24B, 25A: warrant numbers 3045830 through 3046504, and 9002932 through 9002988. Ratify Payroll and employee benefit Checks; Checks released early due to contracts or agreement; Emergency disbursements and/or adjustments; and, Wire transfers. (Fiscal Impact: $16,693,165.36 ($3,705,009.94 in check warrants and $12,988,155.42 in wire warrants)) 4. Adopt Resolution No. 5428 acknowledging receipt of the El Segundo Fire Department's annual inspection compliance report, as required by California Health and Safety Code §§ 13146.2 and 13146.3. (Fiscal Impact: None) 5. Accept Checkout Building Restroom Facilities Improvement by Union Construction Company as complete and authorize the City Clerk to file a Notice of Completion with the County Recorder's Office. Project No. PW 21-09. (Fiscal Impact: $$553,295.14, included in adopted FY 2022-23 budget) 6. Approve the designation of Voting Delegates and alternates to the Cal Cities Annual Conference and Exposition. (Fiscal Impact: None) 7. Approve continuing appropriations in FY 2023-24 for ongoing Capital Improvement Program (CIP) projects funded through Gas Tax, Prop C, Measure M, and Smoky Hollow Parking in Lieu Fee Accounts as part of the FY 2022-23 budget. (Fiscal Impact: $1,880,013 (budgeted in FY 2022-23). Staff requests continuing appropriations in the following accounts by rolling over unencumbered ongoing CIP projects funding from FY 2022-23 to FY 2023-24: New appropriations for FY 2023-24 for continuing appropriations: 001-400-4101-6304 (Smoky Hollow Parking in Lieu Fee) - $241,915.00, 106-400-8203-8606 (Gas Tax, Sidewalk Repair) - $248,768.00, 114-400-8203-8943 (Prop C, Local Street rehab.) - $1,296,640.00, 127-400-0000-8382 (Measure M Expenditures) - $92,690.00) 8. Adopt Resolution No. 5430 Appointing Human Resource Director Rebecca Redyk as an alternate representative to the Independent Cities Risk Manager Authority ("ICRMA") governing board ("ICRMA Board") and maintaining Interim EL SEGUNDO CITY COUNCIL MEETING MINUTES AUGUST 15, 2023 PAGE 3 Page 10 of 93 Chief Financial Officer David Cain as Primary Board Member and Council Member Carol Pirsztuk as an alternate representative. (Fiscal Impact: None) 9. Waive formal bidding requirements pursuant to El Segundo Municipal Code § 1- 7-9(A) and authorize the City Manager to enter into Agreement No. 6725 with Emergency Planning Consultants to update the City's Hazard Mitigation Plan. (Fiscal Impact: $52,500, included in the adopted FY 2023-24 budget) MOTION by Council Member Giroux, SECONDED by Council Member Pirsztuk, approving Consent items 2, 3, 4, 5, 6, 7, 8, and 9. MOTION PASSED BY A UNANIMOUS VOICE VOTE. 5/0 PUBLIC HEARING: STAFF PRESENTAIONS: (Items D15, D16 & D14 order switched) 10. Amendment to the City Manager's Employment Agreement to Increase the Annual Base Salary (Fiscal Impact: Retroactive to January 1, 2023 is $6,941 for FY 2022-23. The ongoing fiscal year impact is $13,882 for FY 2023-24. Funding for this proposed amendment is not included in the adopted FY 2023-24 General Fund budget, therefore, staff is requesting the following budget increases: new appropriations for FY 2023-24: Total $13,882 - 001-400-2101-4100 Salaries Full Time - $10,800.00, 001-400-2101-4201 Retirement CalPERS - $1,100.00, 001-400-2101-4202 FICA - $826.00, 001-400-2101-4203 Workers' Compensation - $76.00, 001-400-2101- 4211 401(a) Employer's Contribution - $1,080.00) Rebecca Redyk, Human Resources Director reported on the item. Council Discussion MOTION by Council Member Baldino, SECONDED by Council Member Giroux approving the amendment No. 6420A to the City Manager's Employment Agreement to provide a four percent annual base salary increase ($270,000 to $280,800). MOTION PASSED BY A UNANIMOUS VOTE. 5/0 Mark Hensley, City Attorney read by title only; RESOLUTION NO. 5431 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO, CALIFORNIA, MODIFYING THE ANNUAL SALARY FOR THE CITY MANAGER JOB CLASSIFICATION. MOTION by Council Member Baldino, SECONDED by Council Member Giroux adopting Resolution No. 5431. MOTION PASSED BY A UNANIMOUS VOTE. 5/0 EL SEGUNDO CITY COUNCIL MEETING MINUTES AUGUST 15, 2023 PAGE 4 Page 11 of 93 11. First Reading of an Ordinance Amending El Segundo Municipal Code Chapter 1- 6 (Personal Merit System) to Expand the List of Positions Exempt from the Civil Service System (Fiscal Impact: None) Rebecca Redyk, Human Resources Director reported on the item. Council Discussion Mark Hensley, City Attorney read by title only; ORDINANCE NO. 1650 AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE CHAPTER 1-6 (PERSONNEL MERIT SYSTEM) TO EXPAND THE LIST OF POSITIONS EXEMPT FROM THE CIVIL SERVICE SYSTEM. Council Member Pirsztuk introduced the item. Second reading and possible adoption of the Ordinance is scheduled for the September 5, 2023 Regular Council Meeting. 12. Resolution of Intention and First Reading of an Ordinance Authorizing an Amendment to the City's CalPERS Contract to Implement Additional Government Code § 20516 Employee Cost Sharing for Classic Police Services Support Employees' Association Members (Fiscal Impact: The retirement contract amendment will have an estimated $3,698 annual savings to the City as the employees will be picking up a portion of the "employer share" of their retirement cost) Rebecca Redyk, Human Resources Director reported on the item. Council discussion Mark Hensley, City Attorney read by title only; RESOLUTION NO. 5429 A RESOLUTION OF INTENTION TO APPROVE AN AMENDMENT TO CONTRACT BETWEEN THE BOARD OF ADMINISTRATION CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM AND THE CITY COUNCIL CITY OF EL SEGUNDO MOTION by Council Member Pimentel, SECONDED by Council Member Giroux adopting Resolution No. 5429. MOTION PASSED BY A UNANIMOUS VOTE. 5/0 MOTION by Council Member Pimentel, SECONDED by Council Member Baldino authorizing the City Manager and City Clerk, to execute CalPERS forms as required for submission to CalPERS to facilitate CalPERS contract amendment process. MOTION PASSED BY A UNANIMOUS VOTE. 5/0 EL SEGUNDO CITY COUNCIL MEETING MINUTES AUGUST 15, 2023 PAGE 5 Page 12 of 93 Mark Hensley, City Attorney read by title only; ORDINANCE NO. 1651 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF EL SEGUNDO AUTHORIZING AN AMENDMENT TO THE CONTRACT BETWEEN THE CITY OF EL SEGUNDO AND THE BOARD OF ADMINISTRATION OF THE CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM. Council Member Pimentel introduced the item. Second reading and possible adoption of the Ordinance is scheduled for the September 5, 2023 Regular Council Meeting. 13. Resolutions Amending Chapter 1A2 of the City's Administrative Code for the Management Confidential Series Relating to Salary Increases and Benefit Changes, Including Retiree Health Benefit Changes (Fiscal Impact: The fiscal impact of the proposed salary and benefit changes to Chapter 1A2 of the Administrative Code for the Management and Confidential Series is approximately $928,607 for FY 2023-2024. This cost assumes that all forty-two (42) incumbent employees elect the voluntary arbitration agreement in exchange for a $10,000 bonus payment. Additional Appropriation: Staff is requesting an additional appropriation of $928,607 in FY 2023-24 for implementing the terms of the salary and benefit changes for the Management and Confidential Series employees. Account Numbers: $800,552 to 001-400-XXXX (General Fund), $2,322 to 106- 400-XXXX (State Gas Tax Fund), $23,215 to 126-400-XXXX (CUPA Fund), $24,376 to 501-400-XXXX (Water Utility Fund), $34,823 to 502-400-XXXX (Sewer Fund), $10,818 to 602-400-XXXX (Liability Insurance Fund), $32,501 to 603-400-XXXX (Workers' Comp Reserve/Insurance Fund)) Rebecca Redyk, Human Resources Director reported on the item. Council discussion Mark Hensley, City Attorney read by title only: RESOLUTION NO. 5432 A RESOLUTION OF THE CITY OF EL SEGUNDO, CALIFORNIA AMENDING THE CITY'S ADMINISTRATIVE CODE TO UPDATE SECTIONS FOR SPECIFIC UNREPRESENTED CLASSIFICATIONS UNDER CHAPTER 1A2 (MANAGEMENT — CONFIDENTIAL SERIES) MOTION by Council Member Giroux, SECONDED by Council Member Baldino adopting Resolution No. 5432. MOTION PASSED BY A UNANIMOUS VOTE. 5/0 Mark Hensley, City Attorney read by title only: RESOLUTION NO. 5433 EL SEGUNDO CITY COUNCIL MEETING MINUTES AUGUST 15, 2023 PAGE 6 Page 13 of 93 FIXING THE EMPLOYER CONTRIBUTION UNDER THE PUBLIC EMPLOYEES' MEDICAL AND HOSPITAL CARE ACT AT AN EQUAL AMOUNT FOR EMPLOYEES AND ANNUITANTS WITH RESPECT TO A RECOGNIZED EMPLOYEE ORGANIZATION 001 EL SEGUNDO MID-MANAGEMENT/CONFIDENTIAL MOTION by Council Member Pirsztuk, SECONDED by Council Member Giroux adopting Resolution No. 5433. MOTION PASSED BY A UNANIMOUS VOTE. 5/0 15. Consideration of Two Acre Land Dedication Offer by CDC Mar East Campus 1 LLC to City (Fiscal Impact: See agenda staff report for details) Mark Hensley, City Attorney and Michael Allen, Community Development Director and Alex Rose, CDC Mar reported on the item. Council discussion MOTION by Council Member Pimentel, SECONDED by Council Member Baldino directing City Attorney, staff to explore land options. MOTION PASSED BY A UNANIMOUS VOTE. YES 4/1 Giroux, NO 16. Agreement with KOA Corporation for Construction Management Services for the Urho Saari Swim Stadium ("The Plunge") Project (Fiscal Impact: See agenda staff report for details) Elias Sassoon, Public Works Director reported on the item. KOA Consultant answered council questions. Council Discussion MOTION by Council Member Pirsztuk, SECONDED by Council Member Giroux authorizing the City Manager to execute professional services Agreement No. 6726 with KOA Corporation for $998,589.82 for construction management services for the Urho Saari Swim Stadium project and authorize an additional $100,000 for contingency. MOTION PASSED BY A UNANIMOUS VOTE. 5/0 14. Urho Saari Swim Stadium ("The Plunge") Capital Campaign (Fiscal Impact: No additional appropriation is needed in FY 23-24. The design and installation of the proposed Legacy Wall is estimated to be $20,000 from account 702-233-5101- 5418 (Trust Fund for Plunge Rehab Reserve). The revenue potential for the Urho Saari Swim Stadium Capital Campaign is $3,000,000 for account 702-233-5101-5418) Aly Mancini, Recreation, Parks, and Library Director reported on the item. EL SEGUNDO CITY COUNCIL MEETING MINUTES AUGUST 15, 2023 PAGE 7 Page 14 of 93 Council discussion MOTION by Council Member Pirsztuk, SECONDED by Council Member Baldino approving the proposed Urho Saari Swim Stadium Capital Campaign. MOTION PASSED BY A UNANIMOUS VOTE. 5/0 E. COMMITTEES, COMISSIONS AND BOARDS PRESENTATIONS: None F. REPORTS — CITY CLERK — No report G. REPORTS — CITY TREASURER — Not present H. REPORTS — COUNCIL MEMBERS C TOWNT IOTA[aii1: 11n. rlliT E 17. Discussion of Possibly Creating a Planning Commission Subcommittee to Review, Update, and Implement the South Bay Bicycle Master Plan and Other Multi -Model City Initiatives (Fiscal Impact: None) Council Member Baldino reported on the item. Council discussion MOTION by Council Member Pirsztuk, SECONDED by Council Member Baldino approving the establishment of a Planning Commission subcommittee to review, update and implement the South Bay Bicycle Master Plan and other Multi -Model City Initiative. MOTION PASSED BY A UNANIMOUS VOTE. 5/0 18. Alternate Uses for the Abandoned Reservoir Area at Hilltop Park (Fiscal Impact: None) Council Member Baldino reported on the item. Council discussion MOTION by Council Member Baldino, SECONDED by Council Member Giroux directing staff to analyze alternate uses for the abandoned reservoir area at Hilltop Park. MOTION PASSED BY A UNANIMOUS VOTE. 5/0 Council Member Giroux — 19. Diversity, Equity, and Inclusion Committee Student Representatives (Fiscal Impact: None) Council Member Giroux reported on the item. EL SEGUNDO CITY COUNCIL MEETING MINUTES AUGUST 15, 2023 PAGE 8 Page 15 of 93 MOTION by Council Member Baldino, SECONDED by Council Member Giroux approving a one-year pilot program that would designate two adult representatives from ESUSD and/or DaVinci High School to the City's Diversity, Equity, and Inclusion (DEI) Committee in lieu of filling the two current vacancies and bring back the bylaws to be amended at a subsequent meeting. MOTION PASSED BY A UNANIMOUS VOTE. 5/0 Council Member Pirsztuk — Thanked Rec, Park & Library staff for all summer activities and summer concerts in the park. Park & Rec subcommittee is meeting ongoing for Phase 1 planning of various locations at Rec Park. Thanked Public Works staff for slurry seal project improvements around town. Schools commence next week, lots of E-Bikes on the roads so please drive safe. Mayor Pro Tern Pimentel — California of Governments transportation meeting will begin in September. League of Cities annual advisory looking for volunteers, LA county sanitation meeting tomorrow, attended meeting at Air Force base with City Manager. For Slurry program issue use the Reportlt App on the City's website. City is partnering with SideBar firm to bolster City's reputation as a home for startups. Mayor Boyles — Attending the SCAG meeting tomorrow regarding RHNA and Housing Element Reform on affordable housing. Congratulations to El Segundo Little League Western Champs. Added the Art Walk is next weekend. REPORTS — CITY ATTORNEY — No report J. REPORTS/FOLLOW-UP — CITY MANAGER — No report MEMORIAL —John Stroh and Mary Strenn. Adjourned at 8.21 PM Lili Sandoval, Deputy City Clerk EL SEGUNDO CITY COUNCIL MEETING MINUTES AUGUST 15, 2023 PAGE 9 Page 16 of 93 City Council Agenda Statement F I, F �' t 1\ 1) 0Meeting Date: September 5, 2023 Agenda Heading: Consent Item Number: B.4 TITLE: Warrant Demand Register for July 10, 2023 through July 16, 2023 RECOMMENDATION: Ratify payroll and employee benefit checks, checks released early due to contracts or agreements, emergency disbursements and/or adjustments, and wire transfers. 2. Approve Warrant Demand Register numbers 2A: warrant numbers 3046505 through 3046568. 3. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: The warrants presented were drawn in payment of demands included within the FY 2023-2024 Adopted Budget. The total of $4,449,540.51 ($997,011.36 in check warrants and $3,452,529.15 in wire warrants) are for demands drawn on the FY 2023-2024 Budget. :1_T61201:tell] Z 113 California Government Code Section 37208 provides General Law cities flexibility in how budgeted warrants, demands, and payroll are audited and ratified by their legislative body. Pursuant to Section 37208 of the California Government Code, warrants drawn in payments of demands are certified by the City's Chief Financial Officer and City Manager as conforming to the authorized expenditures set forth in the City Council adopted budget need not be audited by the City Council prior to payment, but may be presented to the City Council at the first meeting after delivery. In government finance, a warrant is a written order to pay that instructs a federal, state, county, or city government treasurer to pay the warrant holder on demand or after a specific date. Such warrants look like checks and clear through the banking system like Page 17 of 93 Warrant Demand Register September 5, 2023 Page 2 of 2 checks. Warrants are issued for payroll to individual employees, accounts payable to vendors, to local governments, and to companies or individual taxpayers receiving a refund. DISCUSSION: The attached Warrants Listing delineates the warrants that have been paid for the period identified above. The Chief Financial Officer certifies that the listed warrants were drawn in payment of demands conforming to the adopted budget and that these demands are being presented to the City Council at its first meeting after the delivery of the warrants. CITY STRATEGIC PLAN COMPLIANCE: Goal 5: Champion Economic Development and Fiscal Sustainability Objective 5B: El Segundo approaches its work in a financially strategic and responsible way. PREPARED BY: Liz Lydic, Management Analyst REVIEWED BY: Wei Cao, CPA, CPFO, Finance Manager APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. 2a - summary Page 18 of 93 CITY OF EL SEGUNDO WARRANTS TOTALS BY FUND 3046505 3046668 DATE OF APPROVAL: AS OF 8101123 0- 0 001 GENERAL FUND 76D,gss.38 003 EXPENDABLE TRUST FUND -OTHER 1.500.00 104 TRAFFIC SAFETY FUND - 106 STATE GAS TAX FUND 4,32 108 ASSOCIATED RECREATION ACTIVITIES FUND - 109 ASSET FORFEITURE FUND Ill COMM. DEVEL BLOCK GRANT 112 PROP"A'TRANSPORTATIOH - 114 PROP"C" TRANSPORTATION - 115 AIR OUALRY INVESTMENT PROGRAM - 116 HOME SOUND INSTALLATION FUND - Ill HYPERION MITIGATION FUND - lie TDA ARTICLE 3.5S 821 SIKEWAY FUND - 119 MTAGRANT 121 FEMA 120 C.O.P.S. FUND - 122 LAW.A FUND 123 PSAF PROPERTY TAX PUBLIC SAFETY - 124 FEDERAL GRANTS - 125 STATE GRANT - 126 AIP CUPA PROGRAM OVERSIGHT SURCHARGE 71.82 127 MEAURE"M" - 128 5s•l 129 CERTIFIED ACCESS SPECIALIST PROGRAM - 130 AFFORDABLEHOUSING - 131 COUNTY STORM WATER PROGRAM 18,050.25 132 MEASURE"B" - 301 CAPITAL IMPROVEMENT FUND 153,025.32 302 INFRASTRUCTURE REPLACEMENT FUND - 405 FACILITIES MAINTENANCE 501 WATER UTILITY FUND 13.448,06 502 WASTEWATER FUND 6,533.18 $03 GOLFCOURSEFUNO - SOS SOLID WASTE FUND 601 EQUIPMENT REPLACEMENT - 602 LIABILITY INSURANCE 24,44 603 WORKERS COMP. RESERVEIINSURANC£ 59.65 701 R£TIREOEMP. INSURANCE - 702 FXPENDASL£TRUST FUND -DEVELOPER FEES 136.83 704 EXPENDABLE TRUST FUND - OTHER - 706 OUTSIDE SERVICES TRUST 23,074.00 TOTAL WARRANTS 3 997.011,36 STATE OF CALIFORNIA COUNTY OF LOS ANGELES Information orr actual expenditures is available in the Director of Finance's office In the City of El Segundo. I certify as to the accuracy of the Demands and the availability of fund forpayment thereof, For Approval: Regular checks held for City council authorization 10 release. CODES: VOID CHECKS DUE TO ALIGNMENT: NIA R = Computer generated checks for all non•emergencylurgency payments for materials, supplies and services in support of City Operations VOID CHECKS DUE TO INCORRECT CHECK DATE: For Ratification: A- Payroll and Employee Benefit checks VOID CHECKS DUE TO COMPUTER SOFTWARE ERROR: B - F = Computer generated Early Release disbursements andlor adjustments approved by the City Manager. Such as: payments for utility services, petty cash and employee travel expense NOTES reimbursements, various refunds, contract employee services consistent with current contractual agreements, instances where prompt payment discounts can be obtained or late payment penalties can be avoided or when a situation atises that the City Manager approves. H = Handwritten Ead Release disbursements and/or adjustments approved by the City Manager. INTERIM CFO CITY MANAGER ' •`" �-„ DATE: DATE: -z'3 REGISTER 8 24 Page 19 of 93 CITY OF EL SEGUNDO PAYMENTS BY WIRE TRANSFER 7/10/23 THROUGH 7/16123 Date Payee Description 7/10/2023 IRS 296,628.48 Federal 941 Deposit 7/10/2023 Employment Development 4,977.70 State SDI payment 7/10/2023 Employment Development 68,095.34 State PIT Withholding 7/10/2023 Cal Pers 616,130.46 EFT Health Insurance Payment 7/10/2023 West Basin 2,173,129.34 H2O payment 7/11/2023 Cal Pers 58,395.51 EFT Retirement Safety Police Classic - 1 st Tier 28 7/11/2023 Cal Pers 59,869.98 EFT Retirement Misc - PEPRA New 26013 7/11/2023 Cal Pers 49,437.27 EFT Retirement Safety Fire- Classic 30168 7/11/2023 Cal Pers 30,631.69 EFT Retirement Safety-Police-PEPRA New 25021 7/11/2023 Cal Pers 35,247.16 EFT Retirement Misc - Classic 27 7/11/2023 Cal Pers 15,070.39 EFT Retirement Safety-Fire-PEPRA New 25020 7/11/2023 Cal Pers 8,183.49 EFT Retirement Sfty Police Classic-2nd Tier 30169 7/11/123 Cal Pers 811.20 Survivor Benefit Employer Contributions - Police 28 7/11/123 Cal Pers 736.80 Survivor Benefit Employer Contributions - Police PEPRA 25021 7/11/123 Cal Pers 720,00 Survivor Benefit Employer Contributions - Fire 30168 7/11/123 Cal Pers 374.40 Survivor Benefit Employer Contributions - Fire PEPRA 7/11/123 Cal Pers 112.80 Survivor Benefit Employer Contributions - Police 30169 7/11/2023 Chase Bank 223.57 Deluxe - Deposit slips 7/13/2023 California EDD 498.67 Reconciliation payment 7/01/23-7109/23 Workers Comp Activity 21,499.36 SCRMA checks issued 7/01/23-7109123 Liability Trust - Claims 11,755,54 Claim checks issued/(voided) 7/01/23-7/09/23 Retiree Health Insurance - Health Reimbursment checks issued 3,452, 529,15 DATE OF RATIFICATION: 7120/23 TOTAL PAYMENTS BY WIRE: Certified as to the accuracy of the wire transfers by; Treasury & Customer Services Manager Date Chief Financial Offic Date City Manager Date 3,452,529.15 Information on actual expenditures is available in the City Treasurer's Office of the City of El Segundo, PACity TreasurerMire Transfers`Wrre Transfers 07-01-23 to 6-30-24 7/20/2023 1/1 Page 20 of 93 CITY OF EL SEGUNDO WARRANTS TOTALS BY DEPARTMENT AS OF 8/01/23 REGISTER # 2a DEPT# NAME TOTAL GENERAL FUND DEPARTMENTAL EXPENDITURES GENERAL GOVERNMENT 1101 City Council 1201 City Treasurer 7,196.53 1300 City Clerk 177.26 2101 City Manager 3,253,90 2102 Communications 90.82 2103 El Segundo Media 2201 City Attorney 2401 Economic Development 2402 Planning 7,067.00 2405 Human and Health Services 2,040.00 2500 Administrative Services 11,222.95 2601 Government Buildings 5,941.29 2900 Nondepartmental 3,659.14 6100 Library 2,072,86 42, 721.75 PUBLIC SAFETY 3100 Police 583,649,54 3200 Fire 17,844.61 2403 Building Safety 62.85 2404 Ping/Bldg Sfty Administration 601,557.00 PUBLIC WORKS 4101 Engineering 31,594.21 4200 Streets 37.02 4300 Wastewater 19,427.17 4601 Equipment Maintenance 26.44 4801 Administration 51,084.84 COMMUNITY DEVELOPMENT 5100,5200 Recreation & Parks 48,552.58 5400 Centennial 48, 552.58 EXPENDITURES CAPITAL IMPROVEMENT 153,025.32 ALL OTHER ACCOUNTS 100,069.87 TOTAL WARRANTS 997,011.36 Page 21 of 93 City Council Agenda Statement F I, F, G t I) O Meeting Date: September 5, 2023 Agenda Heading: Consent Item Number: B.5 TITLE: Fiscal Year 2023-24 Adopted Budget Increase for Fiscal Year 2022-23 Continuing Appropriations RECOMMENDATION: Approve continuing appropriations from FY 2022-23 to FY 2023-24, thereby amending the Fiscal Year 2023-24 Adopted Budget in the Funds and by the amounts contained in Attachment A. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: Amount Budgeted: $0 Additional Appropriation: Carryover of $13,819,763.14 from FY 2022-2023 to FY 2023-2024 Account Number(s): Various BACKGROUND: Continuing Appropriations At the end of the fiscal year, staff prepares a summary of budgeted appropriations that are required to be carried over to the next fiscal year in order to complete multi -year Capital Improvement Program (CIP) projects, professional service agreements (PSAs) that continue over multiple fiscal years, projects that were anticipated to be completed by June 30 but were not, and large purchases that were not completed by June 30. The funds associated with these projects and services should carry-over into the new budget year in order to be completed. Page 22 of 93 Continuing Appropriations Fiscal Year 2023-24 September 5, 2023 Page 2 of 3 DISCUSSION: The attached schedule (Attachment A) identifies projects/purchase orders that were included in the FY 2022-23 budget but were not completed by June 30, 2023. The attached document provides detail of each request and its justification. As a result, staff is requesting to carryover total appropriations of $13,819,763.14 to FY 2023-24. These items represent previously approved purchase orders and therefore should be carried over to FY 2023-24. The carryover of these encumbrances also requires the appropriation be carried over, as sufficient appropriations would not exist in the current year budget to fund both the continued projects and the new projects approved in the Fiscal Year 2023-24 adopted budget. Attachment A - PO Carryover and Budget Adjustment for FY 2023-24 lists the purchase order number, vendor, department, account/fund number, purchase order balance, and a brief reason/justification. The annual strategic planning and budgeting process over the past several years has resulted in staff estimating operational needs, processes, and timing of projects with greater precision, which has resulted in more accurate budget projections. The following table is a summary of the requests listed by fund. Table 1: Fund Name Fund Number Total Request 1 State Gas Tax 106 $10,758 2 Asset Forfeiture Fund 109 29,692 3 Measure R Fund 110 5,489,186 4 Prop C 114 2,351,186 5 Federal Grant Fund 124 786,537 6 State Grant Fund 125 16,686 7 Measure M 127 4,224,219 8 Storm Water "Measure W" 131 7,466 9 CIP Fund 301 622,413 10 Water Fund 501 65,121 11 Sewer Fund 502 84,498 12 Senior Housing 504 12,480 13 Trust Fund/Special Rev 708 119,522 Total $13,819,763 Page 23 of 93 Continuing Appropriations Fiscal Year 2023-24 September 5, 2023 Page 3 of 3 The continuing appropriations from ongoing projects/purchases and encumbrances at the end of the fiscal year do not represent an additional appropriation of funds, but a carryover of unexpended funds from the prior fiscal year. Approval of these continuing appropriations items will have minimal impact on estimated ending fund balances at June 30, 2024. CITY STRATEGIC PLAN COMPLIANCE: Goal 5: Champion Economic Development and Fiscal Sustainability Objective 5B: El Segundo approaches its work in a financially strategic and responsible way. PREPARED BY: Liz Lydic, Management Analyst REVIEWED BY: Wei Cao, CPA, CPFO, Finance Manager APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. Attachment A -PO Carryover and Budget Adjustment for FY 23-24 Page 24 of 93 P09 Vendor Name City of El Segundo Schedule of Purchase Orders and Budget Carryovers Fiscal Year 2022-2023 to Fiscal Year 2023-2024 Dept Fund / Account Number PO Balance 42-00365 Bureau Veritas Technical Assessments, LLC PW 31-00960 SBRPCA 30-00445 Moffatt & Nichol 30-00447 Michael Baker International 30-00445 Moffatt & Nichol 30-00447 Michael Baker International 30-00470 MNS Engineers, Inc. 30-00478 Z&K Consultants 30-00478 Z&K Consultants 30-00481 Sully -Miller Contracting Co 30-00481 Sully -Miller Contracting Cc 30-00477 J.C. Chang & Associates Inc. 41-00199 RTI Consulting Inc 30-00473 Dash Construction Company 30-00474 KOA Corporation 30-00476 FS Contractors, Inc. 30-00481 Sully -Miller Contracting Cc 41-00176 Geosyntec Consultants 30-00455 Westberg White, Inc. 30-00456 IBI Group, A California Partnership 30-00452 Corral Construction & Development, Inc 30-00462 Miller Architectural Corporation 41-00197 Union Construction Company 30-00418 Ras Consulting & Investigation, LLC 30-00471 Kardent 30-00477 J.C. Chang & Associates Inc. 41-00199 RTI Consulting Inc 30-00472 Kardent 30-00480 LPA, Inc. 30-00446 Hirsch & Associates, Inc. 41-00171 Ninyo & Moore 30-00476 FS Contractors, Inc. 71-00380 Omnis Consulting Inc. 71-00397 Omnis Consulting Inc. 41-00196 MNS Engineers, Inc. 41-00198 Omnis Consulting Inc. 43-00274 Downstream Services, Inc. 43-00272 Alcom Fence 30-00479 Omnis Consulting Inc. PD PW PW PW PW PW PW PW PW PW PW PW PW PW PW PW PW PW PW PW PW PW PW PW PW PW PWFire PW Reasons/Justifications 106-400-4202-6214 $10,758.32 Ongoing CIP 106 State Gas Tax $10,758.32 109-400-3105-8104 $29,691.70 Not all vehicles have been outfitted 109 Asset Forfeiture Fund $29,691.70 110400-8203-8929 $5,399,185.50 Ongoing CIP 110400-8203-8929 $90,000.00 Ongoing CIP 110 Measure R Fund $5,489,185.50 114400-8203-8929 $142,440.23 Ongoing CIP 114400-8203-8929 $160,000.00 Ongoing CIP 114400-8203-8943 $39,687.50 Ongoing CIP 114400-8203-8943 $58,058.30 Ongoing CIP 114400-8203-8995 $201,501.70 Ongoing CIP 114400-8203-8995 $1,749,498.30 Ongoing CIP 114 Prop C $2,351,186.03 124-400-8203-8995 $786,537.00 Ongoing CIP 124 Federal Grant Fund $786,537.00 125400-6101-3625 $10,961.88 Ongoing CIP, 50:50 with Fund 301 125400-6101-3625 $5,724.50 Ongoing CIP, 50:50 with Fund 301 125 State Grant Fund $16,686.38 127400-0000-8382 $122,810.28 Ongoing CIP 127400-0000-8382 $28,257.12 Ongoing CIP 127400-0000-8382 $23,151.23 Ongoing CIP 127400-8203-8995 $4,050,000.00 Ongoing CIP 127 Measure M $4,224,218.63 131400-0000-6214 $7,465.75 Ongoing CIP 131 Storm Water "Measure W" $7,465.75 301400-8183-8236 $34,120.00 Ongoing CIP 301400-8186-8236 $349,779.83 Ongoing CIP 301400-8201-8209 $18,611.50 Ongoing CIP 301400-8201-8209 $5,310.56 Ongoing CIP 301400-8201-8209 $10,000.00 Ongoing CIP 301400-8201-8410 $10,250.00 Ongoing CIP 301400-8201-8416 $14,164.50 Ongoing CIP 301400-8201-8710 $10,961.88 Ongoing CIP, 50:50 with Fund 125 301400-8201-8710 $5,724.50 Ongoing CIP, 50:50 with Fund 125 301400-8202-8216 $7,908.37 Ongoing CIP LPA design services will be presented to 301400-8202-8421 $145,918.00 Commision and Council until fall of 2024 301400-8203-8214 $9,664.00 Ongoing CIP 301 CIP Fund $622,413.14 PW 501400-7102-6214 $16,545.00 Ongoing CIP Pw 501400-7102-6256 $13,500.00 Ongoing CIP PW 501400-7103-8207 $25,260.00 Ongoing CIP Pw 501400-7103-8207 $9,816.00 Ongoing CIP 501 Water Fund $65,121.00 PW 5024004301-6206 $13,537.50 Ongoing CIP Pw 5024004301-6206 $8,540.00 Ongoing CIP PW 5024004301-6206 $39,022.51 Ongoing CIP PW 5024004301-6215 $15,000.00 Ongoing CIP Pw 502400-8204-8647 $8,398.00 Ongoing CIP 502 Sewer Fund $84,498.01 30-00393 C&J Technical Solutions and Services, Inc. PW 504400-0000-8103 $12,480.00 Ongoing CIP 504 Senior Housin¢ $12,480.00 24-00361 RRM Design Group CDD 708400-2402-8220 $119,521.69 Active 708 Trust Fund/Special Rev $119,521.69 Grand Total $13,819,763.14 Page 25 of 93 City Council Agenda Statement F 1 F �' t 1) �� Meeting Date: September 5, 2023 Agenda Heading: Consent Item Number: 13.6 TITLE: Second Reading of an Ordinance Amending El Segundo Municipal Code Chapter 1-6 (Personnel Merit System) to Expand List of Positions Exempt from the Civil Service System RECOMMENDATION: Conduct a second reading and adopt the proposed Ordinance amending El Segundo Municipal Code Chapter 1-6 to expand the list of positions exempt from the Civil Service System. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: None. BACKGROUND: Exempt positions from the civil service system do not have the same rights as classified positions. Civil service provides a range of job protections for City employees, including merit -based hiring and promotions, opportunity for employees to correct performance issues, and "for cause" termination. In contrast, employees exempt from civil service may be appointed without a competitive hiring process and are subject to "at -will" employment (i.e., employment that may be terminated at any time for any reason not prohibited by law). El Segundo Municipal Code ("ESMC") §§ 1-6-1 and 1-6-1 require civil service membership for all City employees except those specifically exempted. ESMC § 1-6-4 exempts department heads, elective officers, and certain specified positions listed therein. The "at -will" classifications in the "Management and Confidential" unrepresented group are based upon positions requiring a particularly high degree of professional Page 26 of 93 Second Reading of an Ordinance September 5, 2023 Page 2 of 3 responsiveness, individual accountability, broad management responsibilities, and independent discretion required to perform assigned responsibilities. The proposed Ordinance was introduced and the first reading was waived at the August 15, 2023 City Council meeting. Staff was directed to schedule the second reading at the September 5, 2023 regular City Council meeting. DISCUSSION: The proposed Ordinance would add nine positions to the list of those exempted from the civil service system. The positions proposed or addition are noted below in bold text. A civil service exemption for each of the five positions noted below with an asterisk (*) will become effective upon vacation of each position and City Council approval of a revised classification specification for the position. Positions Excluded from Civil Service System Assistant City Clerk (At -Will) Assistant City Manager (At -Will) Building Safety Manager* City Attorney City Engineer (At -Will) City Manager Communications Manager (At -Will) Deputy City Manager Finance Manager (At -Will) General Services Superintendent (At -Will) Human Resources Manager (At -Will) Information Systems Manager (At -Will) Library Services Manager* Park Maintenance Superintendent* Page 27 of 93 Second Reading of an Ordinance September 5, 2023 Page 3 of 3 Planning Manager (At -Will) Principal Civil Engineer* Recreation Superintendent* Risk Manager (At -Will) Senior Civil Engineer (At -Will) Senior Executive Assistant (At -Will) Treasury and Customer Service Manager (At -Will) Utilities Superintendent (At -Will). Implementation Actions To implement the above actions, modification to ESMC Chapter 1-6 is needed to comply with City's personnel policies and practices and state law. The proposed Ordinance would exclude the positions listed above from the merit system. Two readings of the Ordinance are required for approval. Staff recommends a second reading and adoption of the proposed Ordinance at the regular September 5, 2023 City Council meeting. I:NIAA&II:7_A1Xr]Los aw_1ZEgo] iyilall /_10[N4 Goal 3: Promote a Quality Workforce Through Teamwork and Organizational Efficiencies Objective: El Segundo is an employer of choice and consistently hires for the future, with a workforce that is inspired, world -class, engaged and innovative. PREPARED BY: Rebecca Redyk, Human Resources Director REVIEWED BY: Rebecca Redyk, Human Resources Director APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. Ordinance Amendment ESMC Chapter 1-6 Civil Service Page 28 of 93 ORDINANCE NO. AN ORDINANCE AMENDING EL SEGUNDO MUNICIPAL CODE CHAPTER 1-6 (PERSONNEL MERIT SYSTEM) TO EXPAND THE LIST OF POSITIONS EXEMPT FROM THE CIVIL SERVICE SYSTEM. The City Council of the City of El Segundo does ordain as follows: SECTION 1. The City Council finds and determines as follows: A. State law allows cities to adopt civil service programs that are adaptable to their respective sizes and types via ordinance (Gov. Code, § 45000 et seq.) B. The City has adopted a civil service system which is set forth in El Segundo Municipal Code ("ESMC") Chapter 1-6 (Personnel Merit System). C. The City Council desires to adopt this Ordinance to memorialize updates to the positions excluded from the City's civil service system. SECTION 2. El Segundo Municipal Code ("ESMC") § 1-6-4 is amended in its entirety to read as follows: "1-6-4: EXCLUSIONS: Effective , 2023, those officers and members of departments, in addition to department heads and elected officers who are expressly excluded from the merit system, are: Assistant City Clerk (At -Will) Assistant City Manager (At -Will) Building Safety Manager* City Attorney City Engineer (At -Will) City Manager Communications Manager (At -Will) Deputy City Manager Finance Manager (At -Will) General Services Superintendent (At -Will) Page 29 of 93 City of El Segundo Ordinance No. Page 2 of 4 Human Resources Manager (At -Will) Information Systems Manager (At -Will) Library Services Manager* Park Maintenance Superintendent* Planning Manager (At -Will) Principal Civil Engineer* Recreation Superintendent* Risk Manager (At -Will) Senior Civil Engineer (At -Will) Senior Executive Assistant (At -Will) Treasury and Customer Service Manager (At -Will) Utilities Superintendent (At -Will). *NOTE: Any position designated above with an asterisk will only be excluded from the personnel merit system under this section upon both the vacancy of such position after the date first set forth in this section and City Council approval of a revised classification specification for the position." SECTION 3. Validity of Previous Code Sections. If this entire Ordinance or its application is deemed invalid by a court of competent jurisdiction, any repeal of the ESMC or other regulation by this Ordinance will be rendered void and cause such ESMC provision or other regulation to remain in full force and effect for all purposes. SECTION 4. Enforceability. Repeal or amendment of any previous Code Sections does not affect any penalty, forfeiture, or liability incurred before, or preclude prosecution and imposition of penalties for any violation occurring before this Ordinance's effective date. Any such repealed part will remain in full force and effect for sustaining action or prosecuting violations occurring before the effective date of this Ordinance. SECTION 5. Severability. If any part of this Ordinance or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provision or application and, to this end, the provisions of this Ordinance are severable. Page 30 of 93 City of El Segundo Ordinance No. Page 3 of 4 SECTION 6. The City Clerk, or her duly appointed deputy, is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City of El Segundo's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within fifteen (15) days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 7. Construction. This Ordinance must be broadly construed to achieve the purposes stated in this Ordinance. It is the City Council's intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance. SECTION 8. Environmental Review. This Ordinance was reviewed pursuant to the California Environmental Quality Act (Public Resources Code §§ 21000, et seq., "CEQA") and the regulations promulgated thereunder (14 Cal. Code of Regulations §§15000, et seq., the "CEQA Guidelines"). Based upon that review, this Ordinance is exempt from further review pursuant to CEQA Guidelines §15061(b)(3) because it can be seen with certainty that there is no possibility that the Ordinance may have a significant effect on the environment. SECTION 9. Recording. The City Clerk is directed to certify the passage and adoption of this Ordinance; cause it to be entered into the City's book of original ordinances; make a note of the passage and adoption in the records of this meeting; and, within 15 days after the passage and adoption of this Ordinance, cause it to be published or posted in accordance with California law. SECTION 10. Execution. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Ordinance signifying its adoption by the City Council of the City of El Segundo, and the City Clerk, or duly appointed deputy, is directed to attest thereto. SECTION 11. Effective Date. This Ordinance will take effect on the 30th day following its final passage and adoption. ORDINANCE NO. HAD ITS FIRST READING ON , ITS SECOND READING ON , AND WAS DULY PASSED, APPROVED, AND ADOPTED BY THE CITY COUNCIL OF THE CITY OF EL SEGUNDO AT ITS REGULAR MEETING OF Drew Boyles, Mayor Page 31 of 93 City of El Segundo Ordinance No. Page 4 of 4 ATTEST: Tracy Weaver, City Clerk APPROVED AS TO FORM: Mark D. Hensley, City Attorney Page 32 of 93 City Council Agenda Statement F I, F, G t I) O Meeting Date: September 5, 2023 Agenda Heading: Consent Item Number: B.7 TITLE: Purchase of Three Replacement Police Vehicles RECOMMENDATION: 1. Authorize waiving the formal bidding requirements pursuant to El Segundo Municipal Code § 1-7-9(A) to replace two police K9 patrol vehicles originally due for replacement in September 2020 and a Sergeant's patrol vehicle due for replacement in September 2024 for $162,497.90, with an additional $24,374.69 as a contingency fund for potential unforeseen supply chain issues. 2. Authorize Public Works to auction three police vehicles following their replacement. 3. Authorize the City Manager to execute any necessary agreements or associated documents necessary to complete the purchase of three police vehicles and auction of the vehicles to be replaced. 4. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: The total amount for three (3) vehicles will be $162,497.90. Amount Budgeted: $151,112.00 Additional Appropriation: $35,760.59 (Asset Forfeiture 109-400-3109-8105) Account Number(s): 601-400-3101-8105 1. $151,112.00 from 601-400-3101-8105 (Equipment Replacement) 2. $35,760.59 from 109-400-3109-8105 (Asset forfeiture) Page 33 of 93 Purchase Vehicles September 5, 2023 Page 2 of 3 BACKGROUND: In 2022, the City Council approved the purchase of 10 patrol vehicles to replace the existing fleet. At the time, two K9 patrol vehicles were not initially replaced with the other patrol vehicles due to their relatively low mileage at the time. Since then, the vehicles have incurred extensive repairs which have kept them out of service for weeks at a time. Some of the units have become inoperable during the officer's shift. Currently, one K9 patrol vehicle has been permanently taken out of service due to significant mechanical issues. The K9 patrol vehicles are outfitted with specialized equipment including an air- conditioned rear kennel, internal vehicle temperature monitoring system, warning system to alert the officer if the internal vehicle temperature increases to a dangerous level, and a remote door release in the event the K9 officer needs to urgently deploy the K9 and is away from the vehicle. The Sergeant patrol vehicle is also equipped with additional equipment to serve as a command vehicle including a command board designed to assist in managing critical incidents, a 40mm launcher with specialized less lethal munitions, breaching equipment, maps, a ballistic shield, and other critical incident management equipment. DISCUSSION: The vehicles that are currently on the City's Equipment Replacement Schedule are as follows and were slated for replacement in the below listed years: Two Canine Vehicles One Patrol Vehicle (Sergeant) September 2020 September 2024 Manufacturing and production of vehicles, including police vehicles, has been plagued with delays, supply chain issues, and a worldwide microchip shortage causing increased wait times. As a result of the shortage of available police vehicles nationwide, Ford and Chevrolet have very limited windows in which to order police vehicles. Based on current projections and adding the average time it will take South Bay Regional Public Communications Authority (SBRPCA) to outfit each vehicle (2 vehicles per month), we estimate the patrol vehicles will be in service by late 2024. The cost for the outfitting of the vehicles will be covered under an existing contract with SBRPCA. City Council authorization will allow the City Manager or designee to execute all necessary agreements to effectuate the approvals recommended in this report, and staff believes it is in the City's best interest to waive competitive bidding and issue a direct contract award given the volatile vehicle market. Page 34 of 93 Purchase Vehicles September 5, 2023 Page 3 of 3 CITY STRATEGIC PLAN COMPLIANCE: Goal 2: Support Community Safety & Preparedness Objective A: El Segundo is a safe and prepared community. PREPARED BY: Jeff Darringer, Police Sergeant REVIEWED BY: Jaime Bermudez, Police Chief APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: None Page 35 of 93 City Council Agenda Statement F I, F, G t I) O Meeting Date: September 5, 2023 Agenda Heading: Staff Presentations Item Number: D.8 TITLE: S&P Global Ratings Increase of El Segundo's Long -Term Credit Rating to "AAA" from „AA+.. RECOMMENDATION: 1. Receive and file Standard and Poor's Global (S&P) Rating report and letter for the City of El Segundo's August 8, 2023 credit rating upgrade to "AAA." 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: This rating upgrade demonstrates that investors will recognize that El Segundo continues to move in a positive direction and that the City's financial future is bright. This positive rating allows the City to obtain even lower financing rates if it were to choose to issue bonds in the future, although there is not a plan for the General Fund to issue any bonds. El Segundo is one of 51 cities in California with a "AAA" rating. BACKGROUND: The City of El Segundo received its inaugural Standard & Poor's (S&P) Global credit rating of "AA+" in May 2021 in connection with the City's issuance of pension obligation bonds (POB). At the time of the POB rating, S&P noted in their report the possibility of raising the City's credit rating in the future. The S&P report of May 19, 2021 stated S&P could raise the credit rating if the City's economic and revenue performance improved, coupled with a defined policy goal that would put the City on the path to substantially increasing and maintaining its available General Fund position, as S&P would view significantly stronger reserves as more effectively insulating the City's financial operations from exposure to potentially volatile revenue streams. City staff has worked hard over the last two years to meet and exceed the requirements necessary to receive a "AAA" rating based on a white paper issued by S&P and the comments contained in the May 2021 report. Page 36 of 93 S&P Global Ratings Raises El Segundo Long -Term Credit Rating to `AAA' from `AA+' September 5, 2023 Page 2 of 5 City staff, including City Manager, Darrell George; Interim Chief Financial Officer, David Cain and City Treasurer, Matt Robinson, made a credit rating update presentation to S&P Global on August 1, 2023. S&P Global issued their letter and revised "AAA" credit upgrade to the City on August 8, 2023. The City emphasized several key improved practices in its presentation to S&P requesting consideration of a rating upgrade to "AAA": • Formally adopted policies continue to be adhered to and enhanced for stronger financial security. • Reserves have improved and are maintained at high levels. • Best practices continue with periodic reporting, long-term budget planning and forecasting, long-term five-year CIP annually adopted, as well as the use of external tax revenue consultants (for independent review), as examples. • Financial management continues to strengthen its policies, including the increase of the General Fund reserve policy from 20% to 25% of appropriations, and a new General Fund CIP reserve of 5%. This is in addition to an Economic Uncertainty reserve of $2M. The City staff also emphasized the significant growth of its local economy, revenues and reserves over the last several years, including new construction, the median house price remaining strong, and the continued improvement of the City's diversified and unique revenue sources. City staff shared that one of the top ten City Council Priorities for 2023-24, which came out of the update to the Strategic Plan in June, was to update and utilize the City's long- term financial plan tool to help make key financial decisions. This could include the following decision points: • Identify the financial impacts of various expenditure options. • Show fiscal ramification of the General Fund subsidizing other programs or funds. • Identify opportunities for new revenues or enhancement of existing revenues. • The exploration of potential funding options to support unfunded capital improvements. • Other key financial decision points. S&P was also shown the long-term financial plan graph which shows that the City will need to make further changes to avoid the projected decrease in reserves and expenditures exceeding revenues in future years. Staff is currently working on an update on various options for the City to consider during the coming months. Page 37 of 93 S&P Global Ratings Raises El Segundo Long -Term Credit Rating to `AAA' from `AA+' September 5, 2023 Page 3 of 5 DISCUSSION: The public report issued by S&P included Credit Highlights, Outlook, Credit Opinion, and Related Research. In its Credit Highlights, S&P stated, "The rating change reflects our improved view of the city's policies and procedures, which have partially fueled multiple positive operating results over the last four years, it's very strong financial position, and its bolstered revenue profile." The Outlook from S&P was a "stable outlook" and reflects their "expectation that the city will maintain a very strong financial position over our outlook period, anchored by its very strong management profile." The credit overview reflects S&P's assessment of the City's- • Very strong economy with access to a broad and diverse metropolitan statistical area (MSA) exhibiting signs of continued growth; • Reserves that have historically been maintained at levels above our very strong threshold; • Very strong management policies and practices, including robust long-term financial and capital planning, and a strong institutional framework; and • Weak debt and liabilities profile and a pension profile which they did not consider a credit pressure. The credit opinion section noted strong financial policies and practices supported by established management team. S&P credited the City's strong financial policies and practices by an established management team, continued commercial and corporate growth, and the quick revenue recovery of its well diversified and flexible general revenues following a decline during the global pandemic as reasons for the upgrade. This year, the City Council increased its General Fund reserve policy goal to 25% and established a 5% General Fund Reserve for CIP was another factor in the upgrade. Highlights of the city's institutionalized policies and practices include: Use of external consultants to build property, sales, and lodging tax revenue assumptions and an internal model that can forecast employee salary and benefit costs under current contracts and memoranda of understanding; Quarterly budget -to -actual updates to the city council; Ten-year financial forecasting model that details revenue and expenditure Page 38 of 93 S&P Global Ratings Raises El Segundo Long -Term Credit Rating to `AAA' from `AA+' September 5, 2023 Page 4 of 5 assumptions that we view as realistic and includes best- and worst -case scenarios; • Annually updated five-year capital practice that includes funding sources and timing by project; • Formal investment policy, with quarterly reporting on holdings and returns and annual policy reviews; • Debt management policy that addresses good governance goals but lacks what we consider substantial quantitative constraints; and • Minimum reserve policy of 25% of appropriation (up from 20%) plus a $2-million economic uncertainty reserve (equivalent to 3% of General Fund expenditures) to manage potential disruptions associated with recessions and a 5% capital reserve fund policy to address future capital needs. S&P stated El Segundo's position as a key employment and entertainment hub within the broad and diverse Los Angeles County metropolitan area continues to spur healthy economic growth for the city. The new Topgolf private investment, in addition to providing over 500 jobs and adding to the tax base, will bring in recurring General Fund revenue, further diversifying the City's revenue structure. El Segundo voters approved Measure BT, which amended the City's ordinance governing the City's business tax which will bring in additional ongoing revenues which will continue to support important City services and programs. The City's residential market remains active, with multiple housing projects underway. S&P noted that a negative rating action could be taken if the City experiences a deterioration in budgetary performance that results in reserves sustained at levels below the City's bolstered reserve policy. The key credit metrics for the City included `very strong economy'; `strong budgetary performance'; 'very strong budgetary flexibility'; 'very strong liquidity'; `very strong management'; 'weak debt and long-term liabilities', and `strong institutional framework. I:NIAA&II:7_'l1*0102:JW_1zK961iyiIUA/_10[N4 Goal 5: Champion Economic Development and Fiscal Sustainability Objective 513: El Segundo approaches its work in a financially strategic and responsible way. Page 39 of 93 S&P Global Ratings Raises El Segundo Long -Term Credit Rating to `AAA' from `AA+' September 5, 2023 Page 5 of 5 PREPARED BY: Liz Lydic, Management Analyst REVIEWED BY: David Cain, Interim Chief Financial Officer APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: 1. S&P Global Ratings letter re: El Segundo Taxable Pension Obligation Bonds, California 2. S&P Global Ratings Direct summary rating report Page 40 of 93 One California Street, 31st S&P Global Floor San Francisco, CA 94111-5432 Ratings tel 00 reference no.: 40 546151 August 8, 2023 City of El Segundo 350 Main Street El Segundo, CA 90245 Attention: David Cain, Interim Finance Director Re: El Segundo Taxable Pension Obligation Bonds, California Dear David Cain S&P Global Ratings has reviewed the rating on the above -listed obligations. Based on our review, we have raised our credit rating from "AA+" to "AAA" while affirming the stable outlook. A copy of the rationale supporting the rating and outlook is enclosed. This letter constitutes S&P Global Ratings' permission for you to disseminate the above -assigned ratings to interested parties in accordance with applicable laws and regulations. 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No person is intended as a third party beneficiary of any credit rating engagement or of a credit rating when issued. PF Ratings U.S. (4/28/16) Page 1 4 Page 44 of 93 S&P Global Ratings RatingsDirect @ Summary: E1 Segundo, California; General Obligation Primary Credit Analyst: Malcolm Simmons, Chicago +1 3122337081; malcolm.simmons@spglobal.com Secondary Contact: Chris Morgan, San Francisco + 1 (415) 371 5032; chris.morgan@spglobal.com Table Of Contents ............................................................................................................. Credit Highlights Outlook Credit Opinion Related Research WWW.STANDARDANDPOORS.COM/RATINGSDIRECT AUGUST 8, 2023 1 Page 45 of 93 Summary: E1 Segundo, California; General Obligation El Segundo taxable pension obligation bnds Long Term Rating AAA/Stable Upgraded Credit Highlights • S&P Global Ratings raised its long-term rating to 'AAA' from 'AA+' on El Segundo, Calif's outstanding pension obligation bonds (POBs). • The rating change reflects our improved view of the city's policies and procedures, which have partially fueled multiple positive operating results over the last four years, its very strong financial position, and its bolstered revenue profile. • The outlook is stable. Security The city's outstanding POBs are an absolute and unconditional obligation of the city, which we consider a form of general fund/non-ad valorem obligation. Despite the lack of a specific full -faith -and -credit general obligation (GO) pledge, our rating is equivalent to our view of the city as obligor because our assessment of the city already includes our view of its ability to raise revenue. Credit overview El Segundo's position as a key employment and entertainment hub within the broad and diverse Los Angeles County metropolitan statistical area (MSA) continues to spur healthy economic growth. Furthermore, sales taxes, the city's largest general revenue source, quickly recovered in fiscal 2022 following a minor decline in 2021. These gains, coupled with an influx of COVID-19-related aid, relatively stable results in most of the city's main revenue sources, and what appears to be prudent management strategies, have resulted in three surpluses over the last four years and the bolstering of the city's fund balance position. We note that the city's lodging taxes continue to recover from the pandemic and have largely returned to pre -pandemic levels. The city is positioned to post another general fund surplus in fiscal 2023 but plans to draw down on its current fund balance position in 2024. While we expect to see some fluctuations in reserve levels as these excess funds are allocated for one-time capital needs, management does not plan to reduce the fund balance below its 25% policy. The rating further reflects our assessment of the city's: • Very strong economy with access to a broad and diverse MSA exhibiting signs of continued growth; • Reserves that have historically been maintained at levels above our very strong threshold; • Very strong management policies and practices, including robust long-term financial and capital planning, and a WWW.STANDARDANDPOORS.COM/RATI NGSDIRECT AUGUST 8, 2023 2 Page 46 of 93 Summary: El Segundo, California; General Obligation strong institutional framework; and • Weak debt and liabilities profile and a pension profile that we do not consider a credit pressure. Environmental, social and governance We believe that the city has elevated exposure to environmental risks, with the likelihood of major earthquakes and the potential for waste and pollution associated with a strong industrial presence the most prominent. We believe the state's strong building code partially mitigates the seismic risk. We consider the city's social and governance risks neutral. Outlook The stable outlook reflects our expectation that the city will maintain a very strong financial position over our outlook period, anchored by its very strong management profile. Downside scenario We could take a negative rating action if the city experiences a deterioration in budgetary performance that results in reserves sustained at levels below the city's bolstered reserve policy. Credit Opinion Commercial -oriented city near Los Angeles experiencing continued growth Located just south of Los Angeles International Airport, the city of El Segundo has a population of approximately 17,000. However, the city has an array of popular entertainment and commercial attractions and management reports that its daytime population often swells to over 75,000. The city is an established commercial center, specializing in defense aerospace as well as sports entertainment administration. Its largest taxpayer, Chevron, has been in the city for over a century and makes up nearly 10% of the city's assessed value (AV). We note that the slight contraction in AV in fiscal year 2022 was largely tied to a property tax appeal by Chevron. However, the city currently has a tax agreement with Chevron that extends through 2028 and provides the city with a measure of budgetary predictability as well as reducing the risk of volatility associated with property tax assessment revisions. Most recently, Topgolf, a golf and recreation facility, constructed a nine -hole golf course and an entertainment center in the city that will result in over 500 new jobs. In addition, the L.A. Chargers recently agreed to build a 143,000-square-foot facility in the city, scheduled for completion sometime in 2024. The city's residential market also remains active, with multiple housing projects underway. Lastly, we note that the city has experienced some commercial and corporate vacancies which, in our view, are largely tied to the increased number of employees working from home. Despite this, given the city's reputation as a business -friendly city, its proximity to the larger metropolitan area, and its current development pipeline, we expect its AV to trend positively over the next few years. WWW.STANDARDANDPOORS.COM/RATI NGSDIRECT AUGUST 8, 2023 3 Page 47 of 93 Summary: El Segundo, California; General Obligation Financial position remains strong despite decreases in lodging tax results Despite seeing a steep reduction in its occupancy taxes in 2021 largely tied to the pandemic, El Segundo has posted general fund surpluses in three out of the last four years. Lodging taxes have continued to recover and in 2022 reached approximately 80% of their pre -pandemic level. In addition, the city's revenue structure, which largely consists of sales taxes (17% of general fund revenues), lodging taxes (14%), business license fees (13%), property taxes (13%), and user fees (13%), is well diversified and flexible. Its largest revenue source, sales taxes, experienced a minor decline (after adjusting for a nine -month fiscal year) during fiscal 2021 but quickly recovered the following year, signaling a resilient consumer base. The city's remaining revenues were mostly resilient during that time and have continued to trend positively. This, coupled with cost-cutting initiatives and an influx of COVID-related federal aid, has helped the city continue to build its fund balance well above our very strong threshold. The city received approximately $4 million in federal pandemic relief aid and used most of the funds on public safety. The new Topgolf private investment, in addition to providing jobs and adding to the city's tax base, will bring approximately $2 million (3% of general fund expenditures) in recurring general fund revenue, further diversifying the city's revenue structure. The city plans to use most of the funds on pension obligations but is earmarking the remainder for a variety of general operation uses. Furthermore, in fiscal 2023, El Segundo voters approved Measure BT, which amended the city's ordinance governing the city's business tax rates and other business -related measures and, starting in fiscal 2024, will bring in approximately $3 million (4% of general fund expenditures) annually. The city is positioned to post a sizable surplus in fiscal 2023 but does expect to draw down on its fund balance in fiscal 2024. The expected drawdown of approximately $10 million (16% of expenditures) will mainly be used to fund various capital projects but will also be allocated toward the city's pension trust and future personnel costs. Still, we expect that the city will maintain its very strong reserves given its long track record of reporting available fund balances of more than 30% of operating expenditures and its formal fund balance policy that includes a long-term goal of maintaining at least 25% of appropriations. Lastly, we note that 2021 results, in addition to showing a slowdown in economic activity, also incorporate the city's decision to shift to a June fiscal year-end and therefore account for only nine months, which could be artificially depressing results. Strong financial policies and practices supported by established management team Highlights of the city's institutionalized policies and practices include: • Use of external consultants to build property, sales, and lodging tax revenue assumptions and an internal model that can forecast employee salary and benefit costs under current contracts and memoranda of understanding; • Quarterly budget -to -actual updates to the city council; • Ten-year financial forecasting model that details revenue and expenditure assumptions that we view as realistic and includes best- and worst -case scenarios; • Annually updated five-year capital practice that includes funding sources and timing by project; • Formal investment policy, with quarterly reporting on holdings and returns and annual policy reviews; • Debt management policy that addresses good governance goals but lacks what we consider substantial quantitative constraints; and • Minimum reserve policy of 25% of appropriation (up from 20%) plus a $2-million economic uncertainty reserve WWW.STANDARDANDPOORS.COM/RATI NGSDIRECT AUGUST 8, 2023 4 Page 48 of 93 Summary: El Segundo, California; General Obligation (equivalent to 3% of general fund expenditures) to manage potential disruptions associated with recessions and a 5% capital reserve fund policy to address future capital needs. The institutional framework score for California municipalities required to submit a federal single audit is strong. Elevated debt profile not expected to grow over the medium term The city's net direct debt includes POBs that were issued in 2021 to restructure the baseline forecast with a flat payment pattern and ultimately lower long-term expenses if the city's assumptions regarding investment returns are realized. The city's debt profile also includes alternative financing that we do not consider a contingent liquidity risk. Management reports no additional debt plans. Pension profile not a significant credit pressure We do not consider the city's pension and other postemployment benefit (OPEB) liabilities an immediate source of credit pressure, including factoring in the effects of recent asset contributions using general city resources and the contribution associated with the series 2021 POBs. The city participated in the following plans as of Sept. 30, 2021: • Ca1PERS safety plan: $13.3 million in net assets, and 107% funded; and • Ca1PERS miscellaneous plan: $5.6 million in net assets, and 104% funded. Ratings' relationship with the U.S. sovereign rating The rating reflects our view that the city's general creditworthiness is above that of the U.S. sovereign. We do not expect the city to default in a stress scenario likely to accompany a sovereign default given its autonomy from sovereign intervention. We view the city as exhibiting relatively low funding interdependency with the federal government, as local taxes represent most of the total governmental funds revenue. However, consistent with our view that U.S. state and local governments are moderately sensitive to country risk, we would be unlikely to set ratings on the city's obligations more than two notches above the U.S. sovereign rating. Most recent Historical information 2022 2021 2020 Very strong economy Projected per capita EBI % of U.S. 185.3 Market value per capita ($) 917,149 Population 16,621 16,762 16,988 County unemployment rate(%) 4.9 Market value ($000) 15,243,934 15,403,646 14,200,895 Ten largest taxpayers % of taxable value 31.9 Strong budgetary performance Operating fund result % of expenditures 5.4 2.5 (4.3) Total governmental fund result % of expenditures 18.6 4.3 3.6 WWW.STANDARDANDPOORS.COM/RATI NGSDIRECT AUGUST 8, 2023 5 Page 49 of 93 Summary: El Segundo, California; General Obligation Most recent Historical information 2022 2021 2020 Very strong budgetary flexibility Available reserves % of operating expenditures 47.8 53.2 31.3 Total available reserves ($000) 36,197 31,672 23,343 Very strong liquidity Total government cash % of governmental fund expenditures 156.1 174.0 115.1 Total government cash % of governmental fund debt service 4,821.8 46,882.1 827.5 Very strong management Financial Management Assessment Strong Weak debt and long-term liabilities Debt service % of governmental fund expenditures 3.2 0.4 13.9 Net direct debt % of governmental fund revenue 158.6 Overall net debt % of market value 3.6 Direct debt 10-year amortization (%) 52.6 Required pension contribution % of governmental fund expenditures 6.4 OPEB actual contribution % of governmental fund expenditures 4.7 Strong institutional framework Data points and ratios may reflect analytical adjustments. EBI--Effective buying income. OPEB--Other postemployment benefits. Related Research • Through The ESG Lens 3.0: The Intersection Of ESG Credit Factors And U.S. Public Finance Credit Factors, March 2, 2022 • Pension Spotlight, California, July 13, 2021 • U.S. Local Governments Credit Brief: California Counties And Municipalities Means And Medians, Sept. 7, 2022 Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column. 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WWW.STANDARDANDPOORS.COM/RATINGSDIRECT AUGUST 8, 2023 7 Page 51 of 93 City Council Agenda Statement F I, F �' t I) �� Meeting Date: September 5, 2023 Agenda Heading: Staff Presentations Item Number: D.9 TITLE: Resolution to Waive Fees Associated with the World Series Championship Parade and Team Recognition Ceremony for the El Segundo Little League RECOMMENDATION: Pursuant to El Segundo Municipal Code § 8-8-7(D), adopt the proposed resolution to waive all fees for the El Segundo Little League championship parade on September 10, 2023. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: Due to the short timeframe to plan the parade, the fiscal impact will be included in the staff presentation at the September 5, 2023 City Council meeting. Fiscal impact is anticipated to include all fees and expenses associated with the parade (e.g. police, recreation, and public works personnel, AV equipment rentals, signage, restroom facilities and other related items). Since these costs were not included in the FY 2023- 24 adopted budget, staff will include the necessary budget appropriation as part of the mid -year budget process. Staff will attempt to generate sponsorship revenue to offset these costs. BACKGROUND: On August 27, 2023, the El Segundo Little League's 12U All -Stars won the Little League World Series, defeating Curagao 6-5 in dramatic walk -off fashion. The team is the first team from Los Angeles County to participate in the Little League World Series since 1993 and the first Little League team ever from El Segundo to play on a national stage. The win has created a sense of civic pride that has brought the community together to celebrate this historic event. To recognize and honor the championship team, and the countless hours of hard work that these young athletes dedicated to their sport, the Little League proposes conducting a parade and team recognition ceremony on September 10, 2023. The parade would entail street closures and multiple vehicles Page 52 of 93 Parade Fee Waiver September 5, 2023 Page 2 of 2 showcasing the players and coaches. The parade is expected to begin at noon on Main Street from Imperial Avenue to Grand Avenue. The parade will be followed by a team recognition ceremony at Stevenson Field. DISCUSSION: El Segundo Municipal Code Chapter 8-8 governs events proposed in streets, sidewalks, and public rights -of -way, such as parades and block parties. As part of the application and permitting process, an event proponent must pay certain fees, including: 1. public property use fees set by resolution; 2. service charges for non-public safety overhead, admin, equipment, etc.; and 3. public safety personnel and materials for traffic control. (ESMC, § 8-8-7 (A)-(C).) The City Council may waive such fees, upon applicant request, for 501(c)(3) or 501(c)(6) status nonprofit groups, government agencies, or public schools. The Council may also waive fees for community service groups or organizations without 501(c)(3) or 501(c)(6) status (such as El Segundo Little League) if it, "by resolution," determines that the proposed event provides services that meet community needs and it is in the public interest to waive such fees," Given the fact that the championship game was held on August 27, 2023, staff is in the process of determining the amount of the fee waiver, which will be presented at the City Council meeting on September 5, 2023. The proposed Resolution would authorize the waiver of fees for the Little League parade and ceremony. CITY STRATEGIC PLAN COMPLIANCE: Goal 1: Enhance customer service, diversity, equity, inclusion and communication. Goal 2: Support community safety and preparedness. PREPARED BY: Joaquin Vazquez, Deputy City Attorney REVIEWED BY: Darrell George, City Manager APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: ES - Resolution El Segundo Little League Championship Parade Page 53 of 93 RESOLUTION NO. A RESOLUTION WAIVING FEES FOR THE EL SEGUNDO LITTLE LEAGUE CHAMPIONSHIP PARADE PURSUANT TO EL SEGUNDO MUNICIPAL CODE § 8-8-7(D). The City Council of the city of El Segundo does resolve as follows: SECTION 1. Findings. The City Council finds and determines as follows: A. On August 27, 2023, the El Segundo Little League's 12U All -Stars won the Little League World Series, defeating Curagao 6-5 in dramatic walk -off fashion. It is the first Little League World series championship team from Los Angeles County since 1993. B. To recognize and honor the championship team, the parade applicant proposes to conduct a parade on September 10, 2023. C. The parade would entail street closures and multiple vehicles showcasing the players and coaches. D. El Segundo Municipal Code Chapter 8-8 governs events proposed in streets, sidewalks, and public rights -of -way, such as parades and block parties. E. As part of the application and permitting process, an event proponent must pay certain fees, including: public property use fees set by resolution; service charges for non-public safety overhead, admin, equipment, etc.; and public safety personnel and materials for traffic control. F. The City Council finds that the proposed parade provides services and goodwill that meet community needs and it is in the public interest to waive certain parade fees. SECTION 2. Actions. The City Council waives fees, as described in El Segundo Municipal Code ("ESMC") §§ 8-8-7 (A) through (C), inclusive, for the El Segundo Little League championship parade pursuant to El Segundo Municipal Code § 8-8-7(D). SECTION 3. Severability. If any part of this Resolution or its application is deemed invalid by a court of competent jurisdiction, the City Council intends that such invalidity will not affect the effectiveness of the remaining provisions or applications and, to this end, the provisions of this Resolution are severable. SECTION 4. Signature Authority. The Mayor, or presiding officer, is hereby authorized to affix his signature to this Resolution signifying its adoption by the City Council of the City of El Segundo, and the City Clerk, or her duly appointed deputy, is directed to attest thereto. SECTION 5. Effective Date. This Resolution will take effect immediately upon adoption and will remain effective unless repealed or superseded. SECTION 6. City Clerk Direction. The City Clerk will certify to the passage and adoption of this Resolution, enter it in the City's book of original Resolutions, and make a record of this action in the meeting's minutes. Page 54 of 93 PASSED, APPROVED AND ADOPTED this day of , 2023. Drew Boyles, Mayor ATTEST: STATE OF CALIFORNIA ) COUNTY OF LOS ANGELES ) SS CITY OF EL SEGUNDO ) I, Tracy Weaver, City Clerk of the City of El Segundo, California, do hereby certify that the whole number of members of the City Council of said City is five; that the foregoing Resolution No. was duly passed and adopted by said City Council, approved and signed by the Mayor of said City, and attested to by the City Clerk of said City, all at a regular meeting of said Council held on the day of 2023, and the same was so passed and adopted by the following vote: AYES: NOES: ABSENT: ABSTAIN: Tracy Weaver, City Clerk APPROVED AS TO FORM: MARK D. HENSLEY, CITY ATTORNEY Joaquin Vazquez, Assistant City Attorney Page 55 of 93 City Council Agenda Statement F I, F, G t I) O Meeting Date: September 5, 2023 Agenda Heading: Reports - City Treasurer Item Number: G.10 TITLE: Investment Portfolio Report for June 2023 RECOMMENDATION: 1. Receive and file the Investment Portfolio Report dated June 2023. 2. Alternatively, discuss and take other action related to this item. FISCAL IMPACT: None :Y_Tlg 201:16111011:3 The Treasury Department provides an Investment Portfolio Report presented to City Council on a quarterly basis. This current report includes the status of Treasury investment activities and related economic indicators as of June 2023. DISCUSSION: See attached Investment Portfolio Report. CITY STRATEGIC PLAN COMPLIANCE: Goal 5: Champion Economic Development and Fiscal Sustainability Objective 513: El Segundo approaches its work in a financially strategic and responsible way. Page 56 of 93 Presentation of Investment Portfolio Report for June 2023 September 5, 2023 Page 2 of 2 PREPARED BY: Matthew Robinson, City Treasurer REVIEWED BY: Matthew Robinson, City Treasurer APPROVED BY: Barbara Voss, Deputy City Manager ATTACHED SUPPORTING DOCUMENTS: June 2023 Portfolio Report Page 57 of 93 CITY OF ELSEGUNDO City of El Segundo Investment Portfolio Report June 2023 Certified By: City Treasurers Office CITY OF ELSEGUNDO Portfolio J Liquidity a $40,000,000 Portfolio Summary As of June 2023 Portfolio Type / Security Type Reserve $23,759,190 $20,000,000 $5,184,815 $4,584,935 $3,638,141 $5,845,457 $4,372,825 $40,000,000 m > $24,691,019 Y m° $20,000,000 $5,184,815 $4,584,935 $6,094,941 $0 $3,638,141 $4,624,775 40.00% m 30.00% 0 a 20.00% 18.04% 0 10.00% 3.94% 3.48% 2.76 % 4'44% 3.32% 0.00%- 4 3.42 rn 3 a a 2 rn 1.31 3 1 0.96 0 0.00 0.00 0.00 n 6.00% 5.24% -- V 4.13 m 4.00% 3.26% 3.15% a m _._-- ------ 2.58% s 2.00% a % 3 0.00% 0.45 6.00% 5.24% 5.39% 5.27% 5.62% m a' 4.00% 3.26% v a rn 2.00% 'a 3 0.00% 0.45% Security Type CAMP -JPAP $46,474,300 Cash $37,841,954 Government Agency LAIF Medium Term Notes Municipal Bonds Negotiable Certificates of Deposit $46,425,781 U.S. Treasuries $38,657,750 35.29% a _0 2.7 3.00 4.17% 1.86% 5.43% 4.66% CAMP-JPAP Cash LAIF Government Agency Medium Term Notes Municipal Bonds Negotiable Certificates of U.S. Treasuries Deposit Page 60 of 93 $100,000,000 a Y O O 00 $50,000,000 $0 SO% v m > 60% Y O O m f0 0 40 % H O 0 20% O% 3.00 v n T H T T 2.00 f0 O1 Q a 1.00 N 01 0.00 PortfoI io Through Time As of June 2023 March2020 July2020 November2020 March2021 July2021 Portfolio Type $120,494,266 Liquidity Reserve $13,407 �90% 10% November2021 March2022 July2022 November2022 March2023 July2023 Date Page 61 of 93 U.S.Trea $46,47, 35.2< nvestments by Security Type As of June 2023 Negotiable Certificates of Deposit $37,841,954 28.73% CAMP-JPAP $5,184,815 Cash 3.94% $4,584,935 Medium Term Notes $23,759,190 18.04% Bonds 825 6 Security Type CAMP-JPAP Cash Government Agency LAIF Medium Term Notes Municipal Bonds Negotiable Certificates of Deposit U.S. Treasuries Page 62 of 93 $30,000,000 $28,000,000 $26,000,000 $24,000,000 $22,000,000 $20,000,000 $18,000,000 Ol m $16,000,000 7 f0 a $14,000,000 $12,000,000 $10,000,000 $8,000,000 $6,000,000 $4,000,000 $2,000,000 $0 Reserve Portfolio Ladder by Quarter As of June 2023 2023 2024 2025 2026 2027 o I 0 m o o w o 2028 Quarter Q1 Q2 Q3 Q4 Total cY Page 63 of 93 Ladder Diversification As of June 2023 2023 2024 2025 2026 2027 2028 0 0 0 0 0 0 0 $15,000,000 0 0 o 0 0 0 0 o m o 0 0 0 0 0 0 y o 0 0 0 0 0 o v+ o 0 0 0 0 .ti ri ti o .ti o 0o ti 0 0 ,ti = O tPr tR O tR aj O +Pr N tR > $10,000,000 0 0 0 0 m o id 0 m o n o o 0 o m o v+ o ✓�0 0 o uj 0 0 0 � viv3 $5,000,000 � 0 o w ri rj o rvi 0 o w w o v $0 tR tR tR y} 10 % 9.14% 8.08% 8.08% 8.08% 8.08% 8.08% w � M 40.,� I I. I I 7.27 m 5.95 % @` 5.59% a 5% 4.36% 404% 4.52% 4.44% o ~ 3.23% 0 2.83% 2.42% 1.77% 0% 0 0 ■ . 1- 1.41% -.. 0. -- -- --- --- -- -- 0.20% 68.66 % w } 60% a 44.23% 42.59% 44.62% 41.00% 40.65% 40% 32.56°h 37.66% 36.59% a 30.84% N 0 22.10% 22.76% 24.540 16.40°h 18.83% 20% 15.67% 15.67% 14.35% 13.27% 0 6.15 / 7.74% 0% 2.21% 0.92% T > T > N - N a N N 'O N N - N U) - N 1. - N N O o U) O O - V O - V O - O - O - z z o n a Z o n v z n Z n I z n a E o a m o m a E °� m a E 0 m E m E 0 m ., o .� i a o F 1. i n 0 F .� i 0 F i o i i o F E E v E E E m Li E E U ITL'i E E d vi E m Ln E To w ' _ 0 v ' _ w _ > > _ M > _ V V U U V V N N W N N N o o 0 0 o 0 Z Z Z Z Z Z Security Type Government Agency Medium Term Notes Municipal Bonds Negotiable Certificates of Deposit U.S. Treasuries Page 64 of 93 Investments by Maturity Date As of June 2023 $38,000,000 $36,000,000 $34,000,000 $32,000,000 $30,000,000 $28,000,000 $26,000,000 $24,000,000 $23,940,273 $22,000,000 m $20,000,000 m Y $18,000,000 $16,000,000 $14,000,000 $12,000,000 $10,000,000 $ $8,000,000 8,015,987 $6,000,000 $5,184,815 $4,584,935 $4,000,000 $3,638,141 $2,000,000 $1,945,589 $00I a $244,593 " a 975,873 Cash LAIF CAMP-JPAP <30Days 31to90Days 91to180Days 181to365Days 1to2Years $35,550,727 $26,201,780 $21,418,904 2 to 3 Years 3 to 4 Years 4 to 5 Years Page 65 of 93 Security Type Issuer CUSIP Portfolio As of June 2023 Month, Day, Year of Maturity Date Days to Maturity Cash Bank Cash Null 1 LAIF LAIF LAIF Null 1 CAMP-JPAP CAMP-JPAP CAMP -JPAP Null 1 Medium Term Notes AMAZON COM INC AMERICAN HONDA FIN CO APPLE INC ASTRAZENECA FINANCE L BANK NOVA SCOTIA B C BANK OF AMERICA CORP CANADIAN IMP BK COMM CIGNA CORP CITIGROUP INC COCA COLA CO THE COMCASTCORP DEERE JOHN CAPITAL DEUTSCHE BK AG N Y ESTEE LAUDER CO INC GOLDMAN SACHS GROUP I HSBC HOLDINGS PLC IBM CORP INTELCORP INTERCONTINENTAL EXCH MEAD JOHNSON NUTRITIO MITSUBISHI UFJ FIN GR MORGAN STANLEY ORACLE CORP ROYAL BK CDA STRYKER CORP SUMITOMO MITSUI FINL TORONTO DOMINION BANK TOSCO CORP TOYOTA MTR CR CORP FR UNITED PARCEL SERVICE UNITEDHEALTH GROUP IN WELLS FARGO COMPANY 023135CP9 02665WED9 03783BECO 04636NAA1 06418BAE8 06051GFX2 13607HR61 12S523AG5 172967KNO 191216CL2 20030NBWO 24422EWR6 25160PAM9 29736RANO 38141GXJ8 404280BB4 459200ASO 458140CDO 45866FAD6 582839AH9 606822AJ3 61746BDZ6 68389XBL8 78016EZD2 863667AH4 86562MAY6 89115A2M3 891490ARS 89236TKL8 911312BT2 91324PDN9 94974BGL8 December 1, 2027 January 12, 2028 February 8, 2028 May 28, 2026 March 11, 2027 ApriI19,2026 April 7, 2027 November 15, 2025 May1,2026 September 6, 2024 January 15, 2027 January 20, 2028 September 9, 2027 December 1, 2024 April 1, 2025 May 25, 2026 January 15, 2028 February 10, 2026 December 1, 2025 November 15, 2025 September 13, 2026 January 27, 2026 September 15, 2023 May 4, 2027 November 1, 2025 January 17, 2028 January 10, 2028 January 1, 2027 November 10, 2027 September 1, 2024 December 15, 2025 July 22,2027 1,615 1,657 1,684 1,063 1,350 1,024 1,377 869 1,036 434 1,295 1,665 1,532 520 641 1,060 1,660 956 885 869 1,171 942 77 1,404 855 1,662 1,655 1,281 1,594 429 899 1,483 Municipal Bonds CONNECTICUT STTXBL S HOUSTON TX REF SER B NEW YORK NY TXBL FISC ONTARIO CA INTERNATIO OREGON ST DEPT ADM I N I TULSA CNTY OKLA INDPT 20772KGN3 4423315T7 64966QCA6 683042AJ4 68607VT47 899593MG9 Aprill5,2024 March 1, 2024 August 1, 2024 May 15, 2025 Aprill,2024 June 1, 2024 290 245 398 685 276 337 Negotiable Certificates of Deposit 1ST SECURITY BANK OF ABACUS FEDERAL SAVING ACHIEVE FINIL CRUNBE 33625CCP2 00257TBF2 00453NAA9 July 30, 2024 August2,2024 February 17, 2026 396 399 963 Coupon 0.45% Par Value $4,584,935 Market Value $4,584,935 Book Value $4,584,935 UnrealizedP/L $0 3.26% $3,638,141 $3,638,141 $3,638,141 $0 5.24% $5,184,815 $5,184,815 $5,184,815 $0 4.58% $1,000,000 $993,720 $997,630 ($3,910) 4.74% $1,000,000 $991,730 $997,794 ($6,064) 1.38% $500,000 $433,355 $427,219 $6,136 1.33% $500,000 $451,170 $501,040 ($49,870) 3.18% $1,000,000 $927,960 $926,343 $1,617 3.65% $500,000 $479,625 $554,155 ($74,530) 3.68% $1,000,000 $936,690 $948,186 ($11,496) 4.24% $500,000 $486,750 $564,210 ($77,460) 3.58% $500,000 $475,510 $550,715 ($75,205) 1.81% $500,000 $483,245 $493,865 ($10,620) 2.56% $1,000,000 $918,170 $917,335 $835 4.75% $1,000,000 $999,170 $1,004,330 ($5,160) 5.46% $1,000,000 $983,300 $1,005,611 ($22,311) 2.10% $500,000 $476,875 $501,600 ($24,725) 3.64% $500,000 $480,295 $545,605 ($65,310) 4.09% $1,000,000 $952,900 $960,400 ($7,500) 6.12% $1,000,000 $1,062,070 $1,076,510 ($14,440) 4.89% $1,000,000 $997,100 $998,520 ($1,420) 3.86% $500,000 $485,830 $557,000 ($71,170) 4.23% $500,000 $487,690 $565,170 ($77,480) 3.01% $1,000,000 $915,270 $924,800 ($9,530) 4.01% $500,000 $482,655 $561,240 ($78,585) 2.42% $500,000 $496,540 $492,550 $3,990 3.83% $1,000,000 $946,340 $951,709 ($5,369) 3.53% $500,000 $478,450 $548,175 ($69,725) 3.84% $1,000,000 $922,670 $934,451 ($11,781) 5.19% $1,000,000 $993,350 $1,005,769 ($12,419) 7.24% $1,000,000 $1,077,120 $1,107,960 ($30,840) 5.34% $1,000,000 $1,019,970 $1,030,896 ($10,926) 2.28% $500,000 $481,790 $504,105 ($22,315) 3.83% $500,000 $482,590 $560,625 ($78,035) 4.48% $1,000,000 $959,290 $975,500 ($16,210) 3.10% $1,000,000 $980,830 $1,064,850 ($84,020) 2.00% $1,000,000 $976,010 $1,006,410 ($30,400) 2.21% $1,000,000 $963,860 $1,003,750 ($39,890) 3.05% $500,000 $475,035 $538,090 ($63,055) 2.87% $500,000 $490,285 $510,125 ($19,840) 2.67% $500,000 $486,805 $501,550 ($14,745) 2.08% $245,000 $236,058 $245,000 ($8,943) 2.08% $245,000 $236,013 $245,000 ($8,987) Page 66 of 93 Security Type Issuer Negotiable Certificates of Deposit AFFINITY BK COVINGTON ALASKA USA FED CR UN ALL IN FED CR UN DALE ALLIANTCR UN CHICAGO ALLY BK SANDY UTAH ALMA BK ASTORIA NEW Y AMERICAN EXP NATL BAN AMERICAN FIRST CR UN AMERICAN STBKSIOUX AUSTIN TELCO FED CR U BALBOA THRIFT LN ASSN BANK FIVE NINE OCONOM BANK NEW YORK MELLON BANK OF NEW ENGLAND BANK OF PERRY CNTY LO BANK PONTIAC ILL BANK SIERRA PORTERVIL BANK UTAH OGDEN UTAH BANKERS BK MADISON WI BELLCO FEDERAL CR UN Portfolio As of June 2023 CUSIP Month, Day, Year of Maturity Date Days to Maturity 00833JALS September 15, 2026 1,173 011852AEO March 8, 2028 1,713 016641VAE6 February 17, 2028 1,693 01882MAD4 December 30, 2025 914 02007GM42 March 23, 2026 997 020080BLO September 11, 2024 439 02589ACPS May 12, 2025 682 02616ACAS April 27, 2027 1,397 029728BA9 April26,2024 301 052392CH8 December 16, 2026 1,265 05765LAY3 July 19, 2023 19 062119BK7 March 20, 2028 1,725 06405VFG9 March 21, 2025 630 06426KBE7 May 23, 2024 328 06425KCT4 May 31, 2028 1,797 064455AZ1 April 28, 2027 1,398 064860MCO March 15, 2027 1,354 065427ACO May 10, 2028 1,776 0661ORBZ1 November 24, 2027 1,608 07833EAN7 February 24, 2026 970 BLUE RIDGE BK MARTINS 09S82YAG7 March 16, 2026 990 BMO HARRIS BK NATL AS 05600XQA1 May 9, 2025 679 BMW BK NORTH AMER SAL 05580AW83 March 17, 2028 1,722 BRENTWOOD BK BETHEL P 107219BK2 March 17, 2026 991 BRIDGEWATER BK BLOOMI 108622NK3 March 29,2028 1,734 CALIFORNIA CRUNGLEN 130162AU4 February 23, 2026 969 CAPITAL ONE NATL ASSN 14042RURO September 30, 2027 1,553 CATTLEMENS BK ALTUS 0 14947NAA4 March 16, 2026 990 CELTIC BK SALT LAKE C 15118RE78 March 17, 2027 1,356 CENTRAL BK STORM LAKE 15258RBG1 May S, 2025 675 CENTRIS FEDERAL CREDI 15643VAB8 May 27,2025 697 CFBANK FAI RLAWN OH 10 15721UFP9 September 15, 2026 1,173 CHARLES SCHWAB BK SSB 15987UBAS March 28, 2025 637 CHARTWAY FED CR UN VA 16141BACS June 9, 2026 1,075 CHEROKEE ST BK IOWA 164499DE2 March 6, 2026 980 CIBC BK USA CHICAGO I 12547CAU2 March 24, 2026 998 CITADEL FED CR UN EXT 17286TAGO February 27, 2025 608 CITIZENS BK INC ROBER 173851AE6 March 16, 2026 990 CITIZENS ST BK LACROS 176688DA4 March 24, 2028 1,729 CITY NATL BK LOS ANGE 178180GYS March 31, 2028 1,736 COASTLIFE CR UN CORFU 19058LABO February 13, 2026 959 COMMERCE BK GENEVA MI 20056QRZB June 26,2024 362 COMMUNITY FIRST BK IN 20368TDHO May S, 202S 675 COMMUNITY HERITAGE FI 597338AJ1 May 10, 2027 1,410 Coupon Par Value Market Value 4.66% $249,000 $242,900 4.73% $249,000 $241,923 4.73% $249,000 $241,976 5.14% $200,000 $198,554 5.10% $243,000 $240,808 1.83% $245,000 $234,460 3.29% $246,000 $235,907 4.55% $249,000 $240,970 2.56% $245,000 $239,314 5.02% $248,000 $244,771 2.05% $245,000 $244,593 4.78% $249,000 $242,416 5.04% $243,000 $241,246 2.72% $245,000 $239,049 4.30% $249,000 $245,995 4.41% $244,000 $234,923 4.72% $244,000 $237,941 4.45% $249,000 $238,056 4.43% $249,000 $238,761 4.77% $248,000 $244,597 5.05% $230,000 $227,652 4.85% $244,000 $241,292 4.86% $244,000 $238,595 4.83% $235,000 $231,118 4.90% $249,000 $243,963 4.60% $244,000 $238,588 4.47% $200,000 $192,400 4.80% $249,000 $246,366 4.80% $249,000 $243,617 4.71% $249,000 $245,596 5.04% $248,000 $246,090 4.84% $248,000 $243,382 5.08% $243,000 $241,430 4.97% $248,000 $244,627 4.65% $242,000 $236,855 5.05% $243,000 $240,502 1.76% $245,000 $230,302 4.71% $248,000 $247,254 4.82% $249,000 $242,927 5.06% $243,000 $240,125 4.74% $249,000 $244,403 2.37% $245,000 $237,523 4.76% $249,000 $245,813 4.55% $249,000 $240,925 Book Value UnrealizedP/L $249,000 ($6,101) $249,000 ($7,077) $249,000 ($7,024) $199,900 ($1,346) $243,000 ($2,192) $245,000 ($10,540) $237,002 ($1,095) $249,000 ($8,030) $245,000 ($5,686) $248,000 ($3,229) $245,000 ($407) $249,000 ($6,584) $243,000 ($1,754) $245,000 ($5,951) $249,000 ($3,005) $244,000 ($9,077) $244,000 ($6,0S9) $249,000 ($10,944) $249,000 ($10,239) $248,000 ($3,403) $230,000 ($2,348) $244,000 ($2,708) $244,000 ($5,405) $235,000 ($3,882) $249,000 ($5,037) $244,000 ($5,412) $199,800 ($7,400) $249,000 ($2,634) $249,000 ($5,383) $249,000 ($3,404) $248,000 ($1,910) $248,000 ($4,618) $243,000 ($1,570) $248,000 ($3,373) $239,922 ($3,067) $243,000 ($2,498) $245,000 ($14,698) $248,000 ($746) $249,000 ($6,073) $243,000 ($2,875) $249,000 ($4,597) $245,000 ($7,477) $249,000 ($3,187) $249,000 ($8,075) Page 67 of 93 Portfolio As of June 2023 Security Type Issuer Negotiable Certificates of Deposit CONNECTONE BK ENGLEWO CONNEXUSCREDIT UNION CORNERSTONE BK FARGO COUNTY SCHS FED CR UN CROSS RIV BKTEANECK CY FAIR FCU HOUSTON T DISCOVER BK GREENWOOD DORT FINL CR UN GRAND EAGLEBANK BETHESDA MID ENCORE BK LITTLE ROCK ENERBANK USA SALT LAK ENTERPRISE BANK PA FEDERAL SVGS BK CHICA FIDELITY BK NEW ORLEA FIRST FED CR UN CEDAR FIRST FMRSBKTRCONV FIRST NATIONAL BANK 0 FIRST NATL BK DAMARIS FIRST NATL BK OF MICH FIRST ST BK BUXTON ND FIRSTST BK NEW LONDO FIRSTTECHNOLOGY FED FIRST UTD BK TR CO FIRSTWESTN BKTR MIN FLAGSTAR BK NATL ASSN FNCB BK DUNMORE PA FREEDOM FIRST CR UN R FREEDOM NORTHWEST CR FREESTAR FINL CR UN C GENOA BKG CO OHIO GEORGIA BKG CO GOLD COAST BK CHICAGO GRAND RIV BK GRANDVIL GREAT NORTH BK FLOREN GREENSTATE CR UN NORT GREENWOOD MUN FED CR HONOLULU FIRE DEPT FE HORIZON BK WAVERLY NE HUNTINGTON NATL BK CO JOHN MARSHALL BK REST KEY BK NATL ASSN OHIO KNOXTVAEMPLCREDIT LAFAYETTE FED CR UN R LEADERS CR UN JACKSON CUSIP 20786ADG7 20825WBC3 219232CQ6 22258JAF8 227563CH4 23248UAAS 2546732F2 25844MAQ1 27002YFQ4 29260MAM7 29278TMN7 29367RKT2 313812EC9 31617CAY9 32024JAM5 320165JKO 32112UDMO 32117BFR4 32114VCH8 33648RAZ2 336793CD4 33715LEN6 33742CCS4 33749VBP2 33847GAB8 30257YBSO 35638CAH2 356436AK1 35688MAE6 37234809 37312PDD8 38058KEW2 38644ABP3 39103QAZ9 39573LDW5 39729LAF8 438649AES 44042TBQ6 446438SBO 47804GKM4 49306SJ56 499724AD4 50625LAE3 52171MAGO Month, Day, Year of Maturity Date March 23, 2026 August 26, 2025 May 12,2025 March 17, 2026 May 19, 2026 May 19, 2027 March 6, 2028 February 10, 2028 February 24, 2026 August 14, 2023 November 22, 2023 May 16, 2024 February 24, 2026 March 16, 2026 February 17, 2028 September 4, 2024 January 2, 2024 September 23, 2026 March 15, 2028 September 5, 2023 March 12, 2027 February 18, 2025 February 8, 2027 May 12,2025 March 2, 2026 May 7, 2027 April 28, 2025 June 1, 2026 February 22, 2028 July 31, 2024 March 27, 2026 September 22, 2027 August 2, 2024 March 16, 2026 October 28, 2025 June 1, 2027 August 17, 2026 August 29, 2023 May 5,2025 September 2, 2026 March 17, 2025 August 30, 2023 September 27, 2023 March 30, 2028 Days to Maturity 997 788 682 991 1,054 1,419 1,711 1,686 970 45 145 321 970 990 1,693 432 186 1,181 1,720 67 1,351 599 1,319 682 976 1,407 668 1,067 1,698 397 1,001 1,545 399 990 851 1,432 1,144 60 675 1,160 626 61 89 1,735 Coupon 0.79% 3.64% 4.72% 4.87% 4.74% 4.50% 4.61% 4.44% 4.37% 2.01% 1.82% 2.66% 4.33% 4.77% 4.57% 1.83% 1.78% 5.06% 4.73% 1.66% 4.76% 4.90% 4.19% 4.81% 4.51% 4.46% 4.81% 4.92% 4.48% 2.03% 5.01% 4.81% 2.08% 4.92% 4.82% 4.55% 4.53% 1.71% 4.85% 4.57% 5.04% 3.26% 3.32% 5.06% Par Value Market Value $240,000 $211,392 $249,000 $239,299 $249,000 $245,566 $248,000 $244,216 $244,000 $239,127 $249,000 $240,459 $244,000 $235,602 $247,000 $236,549 $244,000 $237,095 $245,000 $244,035 $245,000 $241,661 $245,000 $239,091 $249,000 $241,595 $249,000 $245,516 $249,000 $239,934 $245,000 $234,622 $245,000 $240,644 $248,000 $245,200 $249,000 $241,908 $245,000 $243,408 $244,000 $238,351 $248,000 $245,706 $200,000 $191,156 $249,000 $246,007 $244,000 $240,572 $244,000 $235,297 $248,000 $245,069 $248,000 $244,310 $249,000 $238,893 $245,000 $235,908 $243,000 $240,188 $249,000 $243,273 $245,000 $236,013 $244,000 $240,596 $248,000 $244,409 $249,000 $246,059 $249,000 $241,918 $231,000 $229,838 $244,000 $241,304 $249,000 $242,217 $243,000 $241,255 $245,000 $244,179 $245,000 $243,826 $248,000 $245,061 Book Value UnrealizedP/L $213,854 ($2,462) $238,934 $365 $249,000 ($3,434) $248,000 ($3,784) $244,000 ($4,873) $249,000 ($8,541) $241,897 ($6,296) $247,000 ($10,451) $238,205 ($1,110) $245,000 ($965) $245,000 ($3,339) $245,000 ($5,909) $244,829 ($3,235) $249,000 ($3,484) $249,000 ($9,066) $245,000 ($10,378) $245,000 ($4,356) $248,000 ($2,800) $249,000 ($7,092) $245,000 ($1,593) $244,000 ($5,649) $248,000 ($2,294) $195,050 ($3,894) $249,000 ($2,993) $241,365 ($793) $244,000 ($8,703) $248,000 ($2,931) $248,000 ($3,690) $249,000 ($10,107) $245,000 ($9,092) $243,000 ($2,812) $249,000 ($5,727) $245,000 ($8,987) $244,000 ($3,404) $248,000 ($3,591) $249,000 ($2,941) $249,000 ($7,082) $227,867 $1,971 $244,000 ($2,696) $248,502 ($6,285) $243,000 ($1,745) $245,000 ($821) $245,000 ($1,174) Page 68 of 93 Portfolio As of June 2023 Security Type Issuer Negotiable Certificates of Deposit LIBERTY FED CR UN EVA LIBERTY FIRST CR UN L LIVE OAK BANKI NG COMP LUANA SVGS BK IOWA LYONS NATL BK N Y MAINSTREET BANK MANUFACTURERS TRADERS MEDALLION BK UTAH MIDAMERNCRUNWICHI MIDMOBKSPRINGFIELD MIDWESTBKWESTNIILL MINNWEST BK REDWOOD F MORGAN STANLEY BK N A MORGAN STANLEY PVT BK MOUNTAIN AMER FED CR NEBRASKALAND BK NORTH NEIGHBORS FCU BATON R NORTHWEST BK BOISE ID NUMERICA CR UN SPOKAN ONE CMNTY BK ORE WIS PARKSIDEFINLBKTRC PARTNERS BK MISSION V PEOPLES BK CO COLDWAT PEOPLES SVGS BK WELLS PINNACLE BK NASHVILLE PLAINS ST BK TEX POINT WEST CREDIT UNI POPPY BK SANTA ROSA C POPULAR BK NEW YORK B PORTAGE BK BELLEVUE W PREFERRED BANK LA CAL RAIZ FCU EL PASO TEX RAYMOND JAMES BANK NA RIA FED CR UN ROGUE CR UN MEDFORD 0 SAN FRANCISCO FED CR SANDY SPRING BK OLNEY SAVANNAH BK NATL ASSN SAWYER SVGS BKSAUGER SECURITY ST BK WARROA SIGNATURE FED CR UN A SOUTHERN BK POPLAR BL SOUTHERN FIRST BK N A SOUTHERN MICH BKTR CUSIP 53052LAU3 530520AES 538036GU2 549104C70 552249CHS 56065GAG3 564759SE9 58404DSM4 59522NAD6 59541KBV8 59828PCQ1 60425SKB4 61690UPF1 61760AYR4 62384RAT3 63970MAES 64017AAM6 66736ACE7 67054NBHS 682325DH5 70147AEX8 70212YBN1 710275AC2 71224LAG9 72345SLN9 726547BK7 730716AF4 73319FAF6 73317ABT8 73565MAC9 740367HPS 75102EAG3 75472RAUS 749622ALO 77535MAMS 79772FAG1 800364EX5 804767AB7 805508BYB 81501JAE2 82671DAC1 843383CS7 84287PHU9 843355BP2 Month, Day, Year of Maturity Date June 9, 2025 February 3, 2028 November 27, 2024 March 17, 2026 March 16, 2026 April 26, 2024 March 17, 2027 June 16, 2028 May 23,2025 July 17,2024 March 23,2026 May 3,2027 November 29, 2024 April 11, 2024 April 28, 2026 September 17, 2025 September28, 2023 March 17,2026 June1,2026 October 6, 2026 September 17, 202S March 17, 2025 March 17, 2027 March 8, 2027 May 8,2026 June 21, 2024 ApriI13,2026 March 18, 2025 March 19, 2026 March 24, 2027 August 16, 2024 August 18, 2025 December 30, 2024 December 26, 2023 January 20, 2028 February 3, 2028 March 16, 2026 May 3, 2028 March 10, 2026 May 31, 2028 June 8, 2026 May 17, 2028 November 27, 2026 November8, 2027 Days to Maturity 710 1,679 516 991 990 301 1,356 1,813 693 383 997 1,403 518 286 1,033 810 90 991 1,067 1,194 810 626 1,356 1,347 1,043 357 1,018 627 993 1,363 413 780 549 179 1,665 1,679 990 1,769 984 1,797 1,074 1,783 1,246 1,592 Coupon 5.13% 4.42% 1.94% 4.51% 4.92% 2.66% 4.93% 4.57% 5.04% 1.97% 5.05% 4.42% 2.05% 2.86% 4.79% 4.86% 3.32% 5.05% 4.83% 4.88% 4.68% 5.08% 4.80% 4.54% 4.70% 2.37% 5.05% 1.18% 4.83% 4.85% 2.08% 4.77% 1.95% 2.53% 5.14% 4.52% 4.96% 4.32% 4.65% 4.35% 4.88% 4.40% 4.71% 4.30% Par Value Market Value $248,000 $246,524 $249,000 $239,476 $245,000 $233,046 $244,000 $237,851 $244,000 $240,596 $245,000 $239,510 $244,000 $239,969 $249,000 $239,540 $248,000 $246,098 $245,000 $236,092 $248,000 $245,453 $249,000 $239,655 $245,000 $233,389 $245,000 $240,200 $249,000 $244,416 $249,000 $245,808 $245,000 $243,763 $248,000 $245,465 $248,000 $243,640 $248,000 $243,710 $249,000 $244,772 $243,000 $241,450 $249,000 $243,617 $244,000 $236,346 $244,000 $238,849 $245,000 $237,640 $243,000 $240,466 $245,000 $227,620 $247,000 $242,922 $249,000 $244,025 $245,000 $235,710 $249,000 $245,409 $245,000 $232,297 $245,000 $241,697 $248,000 $246,105 $216,000 $207,738 $244,000 $240,901 $249,000 $236,493 $245,000 $239,752 $249,000 $246,000 $248,000 $243,958 $249,000 $237,494 $249,000 $243,061 $249,000 $237,382 Book Value UnrealizedP/L $248,000 ($1,476) $249,000 ($9,524) $245,000 ($11,954) $244,000 ($6,149) $244,000 ($3,404) $245,000 ($5,490) $244,000 ($4,031) $249,000 ($9,460) $248,000 ($1,902) $245,000 ($8,908) $248,000 ($2,547) $249,000 ($9,345) $245,000 ($11,611) $245,000 ($4,800) $249,000 ($4,584) $249,000 ($3,192) $245,000 ($1,237) $248,000 ($2,535) $248,000 ($4,360) $248,000 ($4,290) $249,000 ($4,228) $243,000 ($1,550) $249,000 ($5,383) $240,906 ($4,560) $244,000 ($5,151) $245,000 ($7,360) $243,000 ($2,534) $245,000 ($17,380) $247,000 ($4,078) $249,000 ($4,975) $245,000 ($9,290) $249,000 ($3,591) $245,000 ($12,703) $245,000 ($3,303) $248,000 ($1,895) $216,000 ($8,262) $244,000 ($3,099) $249,000 ($12,507) $243,177 ($3,425) $249,000 ($3,000) $248,000 ($4,042) $249,000 ($11,506) $249,000 ($5,939) $249,000 ($11,618) Page 69 of 93 Portfolio As of June 2023 Security Type Issuer CUSIP Month, Day, Year of Maturity Date Days to Maturity Coupon Par Value Market Value Book Value Unrealized P/L Negotiable Certificates of Deposit ST VINCENTS MED CTR C 85279AAC6 June 16, 2027 1,447 4.72% $249,000 $242,583 $249,000 ($6,417) STATE BK INDIA NEW YO 856285X89 February 28, 2028 1,704 4.65% $244,000 $236,141 $244,000 ($7,859) SYNCHRONY BK RETAIL C 87164XZW9 August 20, 2026 1,147 1.03% $248,000 $216,901 $219,540 ($2,639) TECHNOLOGY CR UN SAN 87868YAJ2 February 24, 2025 605 5.04% $248,000 $246,274 $248,000 ($1,726) THOMASVILLE NATL BKG 884693BY7 March 24, 2025 633 5.08% $248,000 $246,415 $248,000 ($1,585) TRANSPORTATION ALLIAN 89388CGJ1 March 17, 2025 626 5.04% $248,000 $246,224 $248,000 ($1,776) TRISTATE CAP BK PITTS 89677DJE7 March 30, 2026 1,004 5.05% $243,000 $240,490 $243,000 ($2,510) TRULIANT FED CR UN WI 89789AAD9 February 26, 2027 1,337 4.63% $249,000 $242,006 $249,000 ($6,994) UBS BK USA SALT LAKE 90355GDTO June 1, 2028 1,798 4.50% $249,000 $246,500 $249,000 ($2,500) UFIRST FED CR UN PLAT 902684AA7 August 22, 2025 784 4.77% $249,000 $245,392 $249,000 ($3,608) UNITED FID BK FSB EVA 910286GA5 March 30, 2027 1,369 4.97% $248,000 $244,300 $248,000 ($3,700) UNITED HERITAGE CR UN 91334AAL7 March 21, 2025 630 5.17% $248,000 $246,829 $248,000 ($1,171) UNITED ROOSEVELT SVGS 91139LAF3 May 19, 2027 1,419 4.55% $249,000 $240,895 $249,000 ($8,105) UNIVERSITY BKANN ARB 914098DQ8 April3, 2028 1,739 4.94% $248,000 $243,501 $248,000 ($4,499) UNIVESTNATLBKTRSO 91527PBW6 May 5,2028 1,771 4.32% $249,000 $236,483 $249,000 ($12,517) UPPER PENNISUA STATE 9163OPASO December 27, 2024 546 1.85% $245,000 $232,035 $245,000 ($12,965) USALLIANCE FCU RYE NE 90352RDB8 May 26, 2028 1,792 4.70% $249,000 $241,214 $249,000 ($7,786) UTAH CMNTY CR UN PROV 917352ACO April 27, 2026 1,032 4.70% $249,000 $243,769 $249,000 ($5,231) VALLEYSTAR CR UN MART 92023CAE3 March 20, 2028 1,725 4.86% $248,000 $242,477 $248,000 ($5,523) VIKING BK NATL ASSN A 92675MAAO March 13, 2026 987 4.74% $249,000 $244,286 $249,000 ($4,714) WASHINGTON FEDERAL 938828BJ8 August23, 2024 420 2.13% $245,000 $235,692 $245,000 ($9,308) WELLS FARGO BANK NA 9497631396 May 24, 2024 329 2.72% $245,000 $239,027 $245,000 ($5,973) WESTERN ALLIANCE BK P 95763PLW9 April 28, 2025 668 4.85% $244,000 $241,328 $244,000 ($2,672) Government Agency BIBANKBATON ROUGE LA 098079AM8 May12,2025 682 4.81% $249,000 $246,007 $249,000 ($2,993) CUSTOMERS BK PHOENIXV 23204HNV6 March 31, 2026 1,005 5.05% $243,000 $240,490 $243,000 ($2,510) FEDERAL AGRI MTG CORP 31422BPQ7 November22, 2023 145 1.65% $500,000 $492,515 $499,884 ($7,369) FEDERAL HOME LOAN BKS 3130A1XJ2 3130ASA82 3130ASE96 3130ASH77 June 14, 2024 June 20, 2025 June 27, 2025 June 28, 2024 350 2.95% $2,000,000 $1,951,400 $2,089,405 ($138,005) 721 2.55% $500,000 $490,310 $497,010 ($6,700) 728 3.33% $1,000,000 $961,180 $990,123 ($28,943) 364 3.65% $1,000,000 $978,660 $1,000,000 ($21,340) TENNESSEE VALLEY AUTH 880591ER9 September 15, 2024 443 2.96% $500,000 $484,895 $526,520 ($41,625) U.S. Treasuries U S TREASURY NOTE 91282CCJ8 91282CEX5 91282CHKO 912828ZV5 912828ZW3 June 30, 2026 June 30, 2024 June 30, 2028 June 30, 2027 June 30, 2025 1,096 0.97% $10,000,000 $9,010,200 $8,978,125 $32,075 366 3.07% $10,000,000 $9,764,100 $9,840,625 ($76,525) 1,827 4.02% $10,000,000 $9,945,300 $9,938,281 $7,019 1,461 0.58% $10,000,000 $8,621,900 $8,611,719 $10,181 731 0.27% $10,000,000 $9,132,800 $9,057,031 $75,769 Page 70 of 93 CITY OF ELSEGUNDO Transactions Im I Transactions Prior 3 Months as of June 2023 Year of Transaction Date Month of Transaction Date Day of Transaction Date 2023 April 3 6 12 24 26 27 28 Issuer UNIVERSITY BKC D ONE CMNTY BK C D POINT WEST C D CAPITAL ONE C D UTAH CMNTY CR C D AMERICAN FIRST C D WESTERN C D BANK PONTIAC ILL C D FREEDOM FIRST C D GREENSTATE CR C D MOUNTAIN AMER C D CUSIP 914098DQ8 682325DHS 730716AF4 14042RUR0 917352AC0 02616ACAS 95763PLW9 064455AZ1 35638CAH2 39573LDWS 62384RAT3 Maturity Date 4/03/28 10/06/26 4/13/26 9/30/27 4/27/26 4/27/27 4/28/25 4/28/27 4/28/25 10/28/25 4/28/26 Coupon Par Value Book Value 4.850% $248,000 $248,000.00 4.800% $248,000 $248,000.00 5.000% $243,000 $243,000.00 4.300% $200,000 $199,800.00 4.600% $249,000 $249,000.00 4.400% $249,000 $249,000.00 4.800% $244,000 $244,000.00 4.250% $244,000 $244,000.00 4.750% $248,000 $248,000.00 4.750% $248,000 $248,000.00 4.700% $249,000 $249,000.00 May 1 3 4 5 8 9 10 12 17 19 24 26 30 31 MINNWESTBKCD SAVANNAH BK C D CENTRAL BK C D COMMUNITY FIRST CD HUNTINGTON NATL C D UNIVEST NATL BK C D PINNACLE BK C D SOUTHERN MICH BK C D BMO HARRIS C D BIBANK BATON C D BANK UTAH OGDEN C D COMMUNITY CD CORNERSTONE BK C D FIRST WESTN BK C D ALLIANT CR UN C D FNCB BKC D SOUTHERN BKCD CROSS RIV BK C D CY FAIR FCU C D UNITED C D BANKERS BK C D CENTRIS MTN C D MID AMERN CR UN C D SOUTHERN FIRST D USALLIANCE FCU C D FREEDOM C D NUMERICA CR UN C D BANK OF PERRY C D 60425SKB4 804767AB7 15258RBG1 20368TDH0 446438SB0 91527PBW6 72345SLN9 843355BP2 05600XQA1 098079AM8 065427AC0 597338AJ1 219232CQ6 33749VBP2 01882MAD4 30257YBS0 843383CS7 227563CH4 23248UAAS 91139LAF3 06610RBZ1 15643VAB8 59522NAD6 84287PHU9 90352RDB8 356436AK1 67054NBH5 06425KCT4 5/03/27 5/03/28 5/05/25 5105125 5105125 5/05/28 5/08/26 11/08/27 5/09/25 5112125 5/10/28 5/10/27 5/12/25 5/12/25 12/30/25 5/07/27 5/17/28 5/19/26 5/19/27 5/19/27 11/24/27 5/27/25 5/23/25 11/27/26 5/26/28 6/01/26 6/01/26 5/31/28 4.250% $249,000 $249,000.00 4.100% $249,000 $249,000.00 4.650% $249,000 $249,000.00 4.700% $249,000 $249,000.00 4.800% $244,000 $244,000.00 4.100% $249,000 $249,000.00 4.600% $244,000 $244,000.00 4.100% $249,000 $249,000.00 4.800% $244,000 $244,000.00 4.750% $249,000 $249,000.00 4.250% $249,000 $249,000.00 4.400% $249,000 $249,000.00 4.650% $249,000 $249,000.00 4.750% $249,000 $249,000.00 5.100% $200,000 $199,900.00 4.300% $244,000 $244,000.00 4.200% $249,000 $249,000.00 4.650% $244,000 $244,000.00 4.350% $249,000 $249,000.00 4.400% $249,000 $249,000.00 4.250% $249,000 $249,000.00 5.000% $248,000 $248,000.00 5.000% $248,000 $248,000.00 4.600% $249,000 $249,000.00 4.550% $249,000 $249,000.00 4.850% $248,000 $248,000.00 4.750% $248,000 $248,000.00 4.250% $249,000 $249,000.00 Page 72 of 93 Year of Transaction Date Month of Transaction Date Day of Transact 2023 June 16 30 Transactions Prior 3 Months as of June 2023 ion Date Issuer CUSIP Maturity Date Coupon Par Value Book Value SIGNATURE FED C D 82671DAC1 6/08/26 4.800% $248,000 $248,000.00 CHARTWAY FED CR C D 16141BACS 6/09/26 4.900% $248,000 $248,000.00 LIBERTY FED C D 53052LAU3 6/09/25 5.100% $248,000 $248,000.00 MEDALLION BK C D 58404DSM4 6/16/28 4.400% $249,000 $249,000.00 ST VINCENTS IVIED C D 85279AAC6 6/16/27 4.600% $249,000 $249,000.00 U S TREASURY NT 91282CHK0 6/30/28 4.000% $10,000,000 $9,938,281.20 Page 73 of 93 Transaction Ladder Prior 3 Months as of June 2023 Maturity 13M 12M 11M 1OM 9M 8M 7M 6M sM 4M 3M 2M 1M OM Quarter of Maturity Q2 Q3 Q4 Page 74 of 93 Transaction Summary Prior 3 Months as of June 2023 Medium Term No ($621,753) 2 Municipal Bond ($304,584) 1 U.S. Treasu ($767,02! 3 artificates of Deposit ),634,000 53 Security Type, sum of Cost Basis and count of Cusip. Color shows details about Security Type. Size shows sum of Cost Basis. The marks are labeled by Security Type, sum of Cost Basis and count of Cusip. The data is filtered on Last 3 Months and NonZero. The Last 3 Months filter keeps True. The NonZero filter keeps True. i $5,199,091 Security Type Government Agency Medium Term Notes Municipal Bonds Negotiable Certificates of Deposit U.S. Treasuries Page 75 of 93 Category Q3 $3,000,000 $2,000,000 INTEREST $1,000,000 Interest Received As of June 2023 Transaction Date 2022 Q4 Q1 Category 2023 INTEREST Q2 Grand Total MATURED $3,070,030 PURCHASED $588,989 $420,481 $158,955 $ $207,461 $113,987 $141,458 $248,327 $186,149 $255,578 209,585 $228,058 $311,002 $25,000,000 $20,000,000 $15,000,000 MATURED $10,000,000 $5,000,000 $1,500,000 $2,225,000 $0 $990,000 $245,000 $745,000 $745,000 $0 ($1,471,867) ($248,000) ($248,000) ($20,000,000) ($21,375,964) ($40,000,000) ($46,221,775) PURCHASED ($60,000,000) ($80,000,000) ($100,000,000) $14,951,032 $745,000 $245,000 $1,390,000 ($2,669,800)E � ($7142,900) ($11, $23,781,032 July August September I October November December I January February March I April May June I Total Page 76 of 93 CITY OF ELSEGUNDO Compliance Asset Class Compliance As of June 2023 Security Type In Compliance? Max Weight Weight 3.48% Par Value $4,584,935 Book Value $4,584,935 Market Value $4,584,935 Cash Y 100% LAIF Y 100% 2.76% $3,638,141 $3,638,141 $3,638,141 CAMP-JPAP Y 100% 3.94% $5,184,815 $5,184,815 $5,184,815 Medium Term Notes Y 30% 18.04% $24,500,000 $24,691,019 $23,759,190 Municipal Bonds Y 100% 3.32% $4,500,000 $4,624,775 $4,372,825 Negotiable Certificates of Deposit Y 30% 28.73% $38,762,000 $38,657,750 $37,841,954 Government Agency Y 100% 4.44% $5,992,000 $6,094,941 $5,845,457 U.S. Treasuries Y 100% 35.29% $50,000,000 $46,425,781 $46,474,300 Totals 100.00% $137,161,890 $133,902,157 $131,701,616 Page 78 of 93 Rating Compliance As of June 2023 Security Type Issuer CUSIP S&P Rating Moody Rating In Compliance? Market Value Government Agency BIBANKBATON ROUGE LA 098079AM8 Null N/A Y $246,007 CUSTOMERS BK PHOENIXV 23204HNV6 Null N/A Y $240,490 FEDERAL AGRI MTG CORP 31422BPQ7 N/A N/A Y $492,515 FEDERAL HOME LOAN BKS 3130A1XJ2 3130ASA82 3130ASE96 3130ASH77 AA+ AA+ AA+ AA+ AAA AAA AAA AAA Y Y Y Y $1,951,400 $490,310 $961,180 $978,660 TENNESSEE VALLEY AUTH 880591ER9 AA+ AAA Y $484,895 Medium Term Notes AMAZON COM INC 023135CP9 AA Al Y $993,720 AMERICAN HONDA FIN CO 02665WED9 A- A3 Y $991,730 APPLEINC 037833ECO AA+ AAA Y $433,355 ASTRAZENECA FINANCE L 04636NAAl A A3 Y $451,170 BANK NOVA SCOTIA B C 06418BAE8 A- A2 Y $927,960 BANK OF AMERICA CORP 06051GFX2 A- Al Y $479,625 CANADIAN IMP BK COMM 13607HR61 A- A2 Y $936,690 CIGNACORP 125523AGS A- BAA1 Y $486,750 CITIGROUP INC 172967KNO BBB+ A3 Y $475,510 COCA COLA CO THE 191216CL2 A+ Al Y $483,245 COMCASTCORP 20030NBWO A- A3 Y $918,170 DEERE JOHN CAPITAL 24422EWR6 A A2 Y $999,170 DEUTSCHE BK AG NY 25160PAM9 A- Al Y $983,300 ESTEE LAUDER CO INC 29736RANO A+ Al Y $476,875 GOLDMAN SACHS GROUP I 38141GXJ8 BBB+ A2 Y $480,295 HSBC HOLDINGS PLC 40428013134 A- A3 Y $952,900 IBM CORP 459200ASO A- A3 Y $1,062,070 INTELCORP 458140CDO A A2 Y $997,100 INTERCONTINENTAL EXCH 45866FAD6 A- A3 Y $485,830 MEAD JOHNSON NUTRITIO 582839AH9 A- A3 Y $487,690 MITSUBISHI UFJ FIN GR 606822AJ3 A- Al Y $915,270 MORGAN STANLEY 61746BDZ6 A- Al Y $482,655 ORACLE CORP 68389XBL8 BBB BAA2 Y $496,540 ROYALBKCDA 78016EZD2 A Al Y $946,340 STRYKERCORP 863667AH4 BBB+ BAA1 Y $478,450 SUMITOMO MITSUI FINL 86562MAY6 A- Al Y $922,670 TORONTO DOMINION BANK 89115A2M3 A Al Y $993,350 TOSCO CORP 891490ARS A- A2 Y $1,077,120 TOYOTA MTR CR CORP FIR 89236TKL8 A+ Al Y $1,019,970 UNITED PARCEL SERVICE 911312BT2 A A2 Y $481,790 UNITEDHEALTH GROUP IN 91324PDN9 A+ A3 Y $482,590 WELLS FARGO COMPANY 94974BGLB BBB A3 Y $959,290 Municipal Bonds CONNECTICUT STTXBL S 20772KGN3 AA- AA3 Y $980,830 HOUSTON TX REF SER B 4423315T7 AA AA3 Y $976,010 NEW YORK NYTXBL FISC 64966QCA6 AA AA2 Y $963,860 ONTARIO CA INTERNATIO 683042AJ4 AA N/A Y $475,035 OREGON ST DEPTADMINI 68607VT47 AAA AA2 Y $490,285 TULSA CNTY OKLA INDPT 899593MG9 N/A AA2 Y $486,805 U.S. Treasuries U S TREASURY NOTE 91282CCJ8 91282CEXS 91282CHKO 912828ZVS 912828ZW3 N/A N/A N/A Null N/A AAA AAA N/A AAA AAA Y Y Y Y Y $9,010,200 $9,764,100 $9,945,300 $8,621,900 $9,132,800 Weight Maximum %of Portfolio 0.19% 100.00% 0.18% 100.00% 0.37% 100.00% 1.48% 100.00% 0.37% 100.00% 0.73% 100.00% 0.74% 100.00% 0.37% 100.00% 0.75% 1.00% 0.75% 1.00% 0.33% 1.00% 0.34% 1.00% 0.70% 1.00% 0.36% 1.00% 0.71% 1.00% 0.37% 1.00% 0.36% 1.00% 0.37% 1.00% 0.70% 1.00% 0.76% 1.00% 0.75% 1.00% 0.36% 1.00% 0.36% 1.00% 0.72% 1.00% 0.81% 1.00% 0.76% 1.00% 0.37% 1.00% 0.37% 1.00% 0.69% 1.00% 0.37% 1.00% 0.38% 1.00% 0.72% 1.00% 0.36% 1.00% 0.70% 1.00% 0.75% 1.00% 0.82% 1.00% 0.77% 1.00% 0.37% 1.00% 0.37% 1.00% 0.73% 1.00% 0.74% 1.00% 0.74% 1.00% 0.73% 1.00% 0.36% 1.00% 0.37% 1.00% 0.37% 1.00% 6.84% 100.00% 7.41% 100.00% 7.55% 100.00% 6.55% 100.00% 6.93% 100.00% Page 79 of 93 CITY OF ELSEGUNDO LAI F m I ri J '2 _1 =0 9 8 ac 7 E c 0 0 n Q 7 4 2 1 0 LAI F Apportionment Rates As of June 2023 1979 1984 1989 1994 1999 2004 2009 2014 2019 Date 2024 Page 81 of 93 LAI F Diagnostics As of June 2023 May 1, 19 Sep 1, 19 Jan 1, 20 May 1, 20 Sep 1, 20 Jan 1, 21 May 1, 21 Sep 1, 21 Jan 1, 22 May 1, 22 Sep 1, 22 Jan 1, 23 May 1, 23 Sep 1, 23 Date (Daily Rates) Measure Names Average Maturity Daily Quarterto Date Page 82 of 93 CITY OF ELSEGUNDO City Cash Flows Rolling 13-Month Cash Flow Analysis As of June 2023 $17,000,000 $16,673,9rc $16,000,000 $15,000,000 $14,000,000 $13,000,000 $12,000,000 $11,000,000 $10,000,000 m $9,000,000 $8,000,000 $7,000,000 $6,000,000 $5,922,436 $5,000,000 $4,000,000 $3,000,000 $2,000,000 $1,000,000 $0 June2022 July2022 August2022 September2022 October2022 November2022 December2022 Month of Date $16,791,867 1,974,616 1,373,173 January2023 February2023 March2023 Measure Names Credits Debits Page 84 of 93 $6,000,000 $4,000,000 $2,000,000 $0 ($77, ($2,000,000) ($2,4 ($4,000,000) m ($6,000,000) ($8,000,000) ($10,000,000) ($12,000,000) ($14,000,000) ($16,000,000) ($15,333,461) July Net Change in Cash by Year As of June 2023 August September October November December January Month $6,802,738 February March April May $45,591) 1,520) Years This Year Last Year Two Years Ago Page 85 of 93 Historic Drawdowns As of June 2023 Measure Names $21,769,866 Delta Cash $22,000,000 Rolling 12-Month Cumulative Drawdown $20,000,000 $18,334,437 $18,000,000 $16,979,291 $17,052,791 $16,948,871 $17,762,456 18,217,881 $16,000,000 $15,585,731 6,351,446 $15,792,747 $16,109,241 $16,725,952 $15,462,119 $15,676,23 $14,840,702 $ 4,911,012 $14,000,000 14,761,324 $13,414,296 $13,305,490 $13 5 ,592 $13,023,476 $13, 3,290 $12,000,000 $12,094,066 $11,148,423 $11,850,289 $10,389,932 $10,784,866$11,063,937 $9,984,456 $10,000,000 $10,021,393 $9,444,192 $9,589,722 $8,865,921 $8,550,295 $9,131,765 $9,692,17 $8,000,000 $7 749,892 8,007,816 $6,740,588 $7,136,971 $6,802,738 $6,739,372 $6,000,000 $6,198,61 $5,329,544 $5,497,816 $5,976,411 $6,178,113 $6,333,031 $5,765,409 $5,067,055 $4,851,651 $4,642,243 $3,952,705 $3,893,993 $ ,372,399 ,132,805 $3,715,617 $3,759,255 m $4,000,000 $2 952,653 $3,304,431 $4,143,573 $q 601,442 $2,7 ,224 2,012,203 $3,30 ,584 $2,000,000 ,729,214 419,231 $598,7 4$737,577 $1, 9,657 $0 _._ __............. -- --- ---- ----- ...... ........ -- .............. ..... $990,291 �� .........---------$44Z, 55-- ----- -- -- - . ----- (- 071,301) $638,326) $398,052) ($953,953) ($728,584) ($2,000,000) $2,906,612) $1,773,595) ($2,849,212) ($2,754,597) ($2,628,379) 2,759,684) ($2,316,577) ($4,000,000) ($3,489,461) ($3,977,017) ($3764529) ,, ($3,733,785) ($4,012,919) ($3,298,079) ($4,483,630) ($4,180,579) ($6,000,000) ($8,000,000) ($7,520,128) ($10,000,000) ($9,659, 128) ($9,780,664) $10,751,520) ( ($12,000,000) ($14,000,000) ($16,000,000) ($15,333,461) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Date Page 86 of 93 CITY OF ELSEGUNDO Economic Environment U.S. Treasury Yield Curve As of June 2023 5.50% 5.27% 5.23% 5.16% 5.00% o 4.98 /o 11,92% 4.95% 4.68% 4.78% o 4.76 /o 4.55% 4.50% 4.550%/ 4.61% o 4.39 /° 4.25% 4.26% 4.08% 4.00% 4.19% 4.00% 4.00% 3.95% 3.80% 3.70% 3.69% 3.50% 3.40% 3.38% 3.25% 3.38% 3.23% 0 /0 2.89% 2.95% m 2.72% 2.75% 2.56% 2.50% 2.25% 2.20% 2.00% 1.65% 1.50% 1.00% 0.92% 0 ° 0.65% 0.50% 0.00% 1 Month 2 Month 3 Month 6 Month 1 Year 2 Year 3 Year 5 Year Month June 2022 September2022 December2022 March 2023 June 2023 Page 88 of 93 6.00% 5.50% 5.00% 4.50% 4.00% 3.50% v 3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% U.S. Treasury Maturity Through Time As of June 2023 6.02% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Date Measure Names 1 Month 2 Month 3 Month 6 Month 1Year 2Year 3Year 5Year Page 89 of 93 S.S S.0 4.S 4.0 3.5 3.0 1.0 0.5 0.0 mel 10-Year Minus 3-Month Treasury Yield Spread As of June 2023 1984 1989 1994 1999 2004 2009 2014 2019 2N4 Date Page 90 of 93 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% m 4.00% 3.00% 2.00% 1.00% 0.00% -1.00% -2.00% Unemployment vs Inflation As of June 2023 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Date Measure Names Inflation Pct Unemployment Pct Page 91 of 93 3.5 3.0 2.5 2.0 v 0.5 v CO 0.0 -0 5 10 15 -2 0 -25 5-Year Breakeven Inflation Prediction As of June 2023 i� v 2003 2005 2007 2009 2011 2013 2015 2017 2019 2021 2023 Date Page 92 of 93 CITY OF ELSEGUNDO I certify that this report accurately reflects all pooled investments and it is in conformity with the investment policy as approved by the City Council on 10/1/22. A copy of this policy is available in the office of the City Clerk. The investment program herein shown provides sufficient cash flow liquidity to meet the next six months estimated expenditures. Sources for the valuations are as follows: Federal Agency Issues, Treasury Securities and Miscellaneous Securities: Union Bank, the custodial agent for the City of El Segundo. Detailed information on all purchase and sale transactions follows the Investment Portfolio Details section. Matthew Robinson, City Treasurer Date —