The URL can be used to link to this page

Home My WebLink About03 SEPTEMBER 1999 AG � NDA INVESTMENT F� FINANCE COMMITTB� A�DN�SDAY, Se}�tember 15, 1�-- 1:30 P.M. NORTH WING CONFT,-'RENCE ROOM I. CALL TO ORDER II. ROLL CAL,L III. APPROVAL OF MINiTTES Rec: Approve the Minutes o{June 16 and July 21, 1999 as submitted. Aation: N. ORAL COMMUNICATIONS A. Any peraon wiehing to diacuse any item not otherwiae on the agenda may address tke Investrnent FI Finance Committee at tkia point by�ivin�his or her name and addrese fox the record. Remar�xs ehall be limited to a maximum o{five minutes unleae additional time is authorized by the Chairman. B. Z'his is the time and place {or any pereon wko wie�es to comment on non- hearing agenda iteme. It eho�ld be noted that at the Inveatment F� Finance Committee'e discretion, these comments may be de�erred until auch time on the agenda, ae the item is diacussed. Remar�xs ahall be limited to a maximum o{{ive minutes unless additional time is authorized by the Chairman. V. OLD BUSINESS A. Statue of Pub�ic and Private Partnerehine Bac�Zdround Chec�xe {or .Section 4 Rec: Report by Carloa Ortega. Action: B. Bond Iseuanee bv Palrn Deeert �inancin¢Aut�aoritv Rec: Statue Report on new Bonds. Action: AGENDA - INVE5TM�N`I' fd FINANC� COMMITTEE September 15, 1999 VI. NEW BU5INESS A. Citv and Redevelopment A�eney Investment Sekedule {or Au�ust. 1q99 Rec: Review and sul�mit to the next City Council agenda. Review the preaentation on the investment �raphe. Review the investment activity durin$ t�e mont� of l�u�ust. R.eview statua o£ capital projecte and caeh {�ow projectione. Aetion: B. Review �S�tort Term Inveetments Maturir�in �September, 1999 Ree: Review investmente in 1) collateralized depoeite; 2) treasury bonde and notes; and, 3) Agenciea diecount notea. Action: C. 5tate of Cali{ornia Local A�encq Investment Fund Mont�v Reporte {or Tune and Tuly, 1999 Ree: In�ormational item {or the �'ommittee to review. No action requized. D. Mont�y Financial Repart {or Citv Council {or Au�ust. 1999 IZee: Report and submit to City Council. Action: �. Par�zview Pro�eesional O{fice Buildin�s - �inaneial Reports �or Au�uet, 1999 Ree: Review and {ile report. Action: F. Deeert Willow Go� Reeort Financial Irt�ormation �or Tulv and An¢uet, 1999 l2ec: Review and �ile report. Action: G. Palin Desert Recreation Facilities Corporation Ineome Analveie �or Julv and Au�uet, 1999 AGENDA - INV�STM�NT 6 PINANCE COMMITI'�� September 15, 1999 Rec: Review and {ile report. Action: H. Oua�i�ication o� Bro�xer-Dealer App�icante 1. Le}unan Brothers 2. Chase Securitiea 3. Zione Ban�x I. 2000 Cit�o� Palxn Deeert Investment Policy Rec: Review and aixbmit to City Council. Action: J. Citv of Pa�n Desert Treaeury Po�icies and Procedures Manual Rec: Review and aubmit to C'ity C'ouncil. Action: VII. REPORTS AND REMARKS A. Reporte and Remar�xe by any Committee Member B. Iteme to be placed on t�e Next.4�enc�a VIII. NEXT MEETING DATE Next regularly acheduled meeting ie: B�. ]LQDQDQD �4 7Le�� .�n �. avJouulvME�r I kereby certi{y under penalty o�perjury under t�e laws o{tke State o{Cali{ornia, that t�e {oregoing agenda {or the Palm Deeert Investment and Finance Committee was poated on the City Hall bulletin board not lese than 72 houre prior to the me in�. Dated this September 9, 1999. �Lil1/�'�, L\1��CJ2C,�J Veronica Abarca, Recordin� Secretary ORDINANCE NO. 899 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, RESCINDING ORDINANCE NO. 784 AND AMENDING SECTIONS 2.34.010 AND 2.34.020 OF THE MUNICIPAL CODE TtEI,ATTVE TO COMMITTEE/COMMISSION MEMBER REQUIREMENTS. WHEREAS, the City Council adopted Ordinance No. 784 on September 14, 1995, amending Ordinance No. 569, relative to absences from City Committee and Commission members; and WHEREAS, the City Council adopted Resolution No. 97-43 on June 26, 1997, revising the appointment date for all City Committee and Commission members and establishing a residence policy for Committee/Commission appointees; and WHEREAS, the City Council adopted Resolution No. 98-22 on March 12, 1998, changing the terms of office to four years for all City Committee and Commission members; and WHEREAS, it is desirable to have all standard regulations for Committee/Commission members within one document. BE IT HEREBY ORDAINED that in effort to continue to attain consistency and efficiency on all of the City's boards, the following will apply: 1. The beginning dates for all terms of appointment to any City Committee or Commission will commence January lst and end on December 31st. 2. Palm Desert residency shall be a requirement for appointment to a City Committee or Commission except in cases where the City Council deems it appropriate to appoint a non-resident to a board which is in need of specific expertise the non-resident offers. 3. Three unexcused absences in any one year (January 1 through December 31) sball constitute an automatic resignation of inembers holding office on boards which meet monthly. 4. Five unexcusad absances in any one year (January 1 through December 31) shall constitute an automatic resignation of inembers holding office on boards which meet twice monthly. 5. All terms of office for City Committee and Commission members will be four(4) years. - 1- OitDINANCE NO. 899 BE IT FURTHER ORDAINED that an "excused absence" may be granted if the member is serving on jury duty, serving in the military, or has suffered a death in the family. PASSED, APPROVED, and ADOPTED by the City Council of the City of Palm Desert, California, at its regular meeting held on the 14th day of January, 1999, by the following vote, to wit: AYES: Benson, Crites, Ferguson, Kelly, Spieget NOES: None ABSENT: None ABSTAIN: None ROBERT A. SPIEGEL, Mayor ATTEST: SHEILA R. GILLIGAN, City Clerk CITY OF PALM DESERT, CALIFORNIA - 2 - r-�--� • � � M�nutes Finance Committee CONVENE On July 21, 1999, the Investment £d Finance Committee was called to order at 1:34 p.m. by Mt. Paul Gibson. ROLL CALL Bufoid Crites, Dave Erwin, Paul Gibson, Thomas Je{frey, Murray Maglo{f, C'ailos Orte�a, Bob Spie�el, Bill Veazie and Veronica Aba=ca, recording secretary. APPROVAL OF MINUTES The Minutes of the June 16, 1999 meeting were continued to the September 1 S, 1999 meeting. ORAI. COMMUNICATION None. OLD BUSINESS A. Status o� Public ana Private Partnerskips Baclx�round Checlzs {or Section 4 There were no chan�es to the pievious month report. B. Bona Issuanoe bv Paim Desert Financind Authoritv Theie were no changes to the previous month report. C. Requali�ication o� Dealer-Brolxer Mr. Je�frey reviewed the atlditional information which was requested and submitted by Dean Wittez Reynolds. On a motion by Mr. Erwin, seconded by Mr. Ortega the committee approved the requal:fication of Dean Witter Reynolds. Mx. Je{�rey reviewed tke additional in�orxnation wkick was iequested and submitted by Noiwest Financia�/Wells Faz�o. On a motion by Mr. Errvin, seconded Mr. Spiegel the committee approved the requal�cation of Norwest Financial/Wells Fargo. N�W BUrSINE.S�S A. C'itv and Redevelopment 1�ency Investment .Sckec�ule 1 Minul;es I�'Inancc Commi�tce Mr.Je{�rey reviewed tke reports. He stated that the overall boo�value of tke Rede�e�opment Agency Portfolio had declined {rom the prior month by�2.7 ' million due to bond drawe for capital pxojecta. Tkere was a decrease of�37.8 million in {idelity aince tke entiie amount was investment in individual securities such as �ederal agency coupons, commercial paper discount and fedexal agency callables. Mr.Je{frey stated t�at tke boolz va�ue o�t�e Czty Poxt�o�io �ad declined {com t�e prior mont�by$4.5 million due to a timing di�eience o�boo�Zing the tax incremen} revenues. 'I�e rnerall portfolio yield is at 5.14%whick is about 1 base point akead o�I,AI�. Receive and �e reports. B. Review .S�kort Term Investments Maturind in Tulv. 1999 Mr.Je{{rey reported tkat thexe were two investments maturing in July wkick would be invested in US Treasuries Coupon bearing notes. Mr.Je{Irey then reviewed the documents wkick�e �as conatructed for all competitive o{feringe. O{�erings aze made in 20 minute segments. The o�erin�s ha�e recently pxoven to be very competitive. IZeceive and �e report. C. state of Califomia Loca1 A�eacy Investment Funcl Mont�X Report Mx. Gibson reviewed the LAIF Statement �o=June and ae�Zed i{tkere were any questions. . Receive and {i�e report. ' D. Mont�v Financial Revort �or Citv Council �or tke montk enaind iune, 1999 Mr. Gibson xeviewed the xeports. Tke revenue {igures �or June do not include the accruals which will actually be posted in July. Mr. Gibson estimates that we will end tke year at agproximately�31 million compared to budgeted �'��.8f>5 million. 2 Minutes I�'Inance Commi�tee Mr. Ciibson sta4ed that the year-to-date expendituxea plus tke encumbrances would probably paint a true picture o�tke expemclituxes at approximately�28.5 ' million. 'Tke Redevelopment Agency total revenuea were $36.16 million actual witk very little accruals, vexsus a budgeted �32.4 million. The tax inerement was �1.6 million abo�e budget. Mr. Spiegel requested an analyeie be provided wit� re�arde to the tax increment and tke agieements made witk t�e various special districts in tke area. Mz. Ortega stated that an analysis was completed and distributed in the budget. Receive and {i�e xeport. E. Parlxview Pro{essional �{�iee Buildinda - Financial Revorks Mr. Gibaon etated tkat the �{fice Complex year-to-date actual revenues were at $741,000 vs. the budgeted $721,000. Year-to-date expendituze weie at �273,000 ve. $378�000� lea�ing us with a net income o�$467�000. Mr. Gibson etated that we are currently out to bid for the tenant improvementa for tke 5tate Rehal�ilitation o{�ice. Bide�11 be opened July 30 and improvements sho�ld be completed by September 30. �I'ke O{�ice Complex has no vacancies on t�e sin�le story building and only 5.6%vacant on t�e two story bui�ding. Sta{�ie very com�ortable with tke , cuxLent etatus o�the O{�ice C�'omplex. Receive and {ile report. " F. Desert Willow Golf Re'sort Finaneial Information �or Tune, 1999. Mr. Gibeon stated that the {inancials �or Desert Willow did not reflect any accruals. Mr. Gibson eatimated t�ey would etay in the$700's. Mz. Orte�a stated that the money =eceived fcom Intra West for the golf course usa�e �ees, not re{�ected in t�e �inanciala, is a tme pro{it to the �.'ity. Mr. �"iibson stated that we �ave received approximately$$rJ�,�� this yeaz wkich has been applied toward the assessment dietrict payo{�, pre-opening costs and perimeter landscaping leaving about �400,000. 3 Minut;es I'Inancc Committce Intra West will begin bui�ding about 65 units thie yeaz in October, 1999. Mr. Ortega stated tkat according to tke Performa done about t�iee years ago, everyt�in$ is on schedule except �or tke operatin� eacpenses at Deaert �illow. Mr. �'rites requested an analyeis comparin� Deserk �illow to a privately owned course and kow we are doin¢ to tkis point. Receive and �e xeport. . G. Palm Desert Recreation �acilities Corporation Income Anaivsis �or June. 1999 Receive and {ile report. H. Canitalization Policv Mr. G�ibson stated that a company apprwed by Counci�will be comin� to the City to do an inventory of all fixed assets. One o�tke iseues deals with the C'ity's C.'apitalization Policy and bringin�+ it up to speed with the other a�encies in tke Coachella Valley. Tke City o�Palm Desert is one of tke �ew cities tkat has the minimum of{ixed asaets valued at �200, most are at�500 oi greater. Mr. Crites as�Zed what we would be saving by changing the policy. To chec�Z tke inventory on an annual basis, each department would spend one day to thxee days. Public �orizs would spend two to t�ree wee�s with a two to t�ree man team. , Mr. Gibson stated t�at any aensitive items continue to receive a tag, but not be included in the inventory. Sy placing a tag on each sensitive item we would have the abi�ity to �ive all information to police in case of being stolen. , Mx. Spie�el sug�ested bar codin� everyt�iu� to eliminate tke number o��ours it will talze to inventory all items. Mr. Crites suggeated as�Zing the company wko will be coming in to inventory all items i�the bar coding would be possible and i� so, �ow muc� moie it would cost to Ixeep t�ings as they axe. Inventory could be done every othei year rat�er t�an eac�year. Mr. Gibson stated tkat t�is iseue would be followed up on at tke Septeml�er meetin�. Tke otkex issue witk GASB and inventory o� in{rastructuxe is muck moxe pertinent at t�is time. 4 � . Minu�es I�'Inancc Commi�tce REPORT AND REMAR S Mr. Je{{rey pointed out that the July numbers will show a di�erential �or City and RDA. 1'ke committee decided that there would not be a meeting in August; kowever, all reports will be �oxwarded to the committee members. . N�XT M�ETING DAT The next Investment Fd Finanee Committee meetin� will be held Wednesday, September 15, 1999 at 1:30 p.m. ' ADJOLTRNMEN'T Upon motion by Munay Magloff and seconded by Bill Veazie the Investment & Finance Committee adjourned at 2:35 p.m. Respect{ully submitted, � � Veronica L. Abarca, Recording Secretary 5 �r--� • � � Minutes Finance Committee CONVENE On June 16, 1999, the Inveatment £� Finance Committee was called to order at 1:36 p.m. by Mr. Paul Gibaon. ROLL C'ALL Russ Campbell, Buford Crites, Ray Diaz, Dave Hrwin, Paul Gibson, 'I'homas Je{{rey, Murray Maglo{�, Bob Spiegel, and Veronica 1�arca, recording secretary. GUE ST Gregg Lindquist, Kemper Sports-Desert Willow Rut�Ann Moore, Busineas Support Manager Dan Lanagei, Business Support Technician Dave Yrigoyen, Redevelopment Managei fox C'arlos Ortega APPROVAL OF MINLI'I'ES Upon motion by Mr. Russ Campbell, and seconded by Mr. Dave Erwin, the Minutes of the May I 9, I 999 meeting were APPROVED as submitted. ORAL COMMiJNICATION Mr. �"iibson statea tkat ke woula talxe Items F F9 �"s unaer New Business out o� order per T'Ir. L,indquiet�s request. F. Desert Willow C'solf Resort Financial Information �or May. 1999. Mx. Lindquist stated that May, again, was another good month. �xpenses were h�gher due to more business which required additional cart usage and tke Prolinlz System. `�he yea=-to-date gross as o�May 31, is at �929,000; that is over�391,000 over budget. Mr. Lindquist stated that June is also doing well �or tl�is time of year and may allow Desert Wi�low to reach ita budgeted goal by t�e end o{June. Receive and {ile report. G. Palm Desert Recreation Facilities Corporation Income Analvsis �or Mav, 1999 Mr. L'utdquist =eviewed tke xeport and as�xed if there were any questions. Receive and �e report. 1 Minut;es I�'Inancc Commii;tce On a motion by Mr. Diaz, seconded by Mr. Erwin the committee � agreed to add the Review of the Small Business Loan Program to the agenda of June 16, 1999. OLD BUSINESS C. small Bueiness Loan Pro�ram Ruth Ann Moore and Dan Lanagez of the Bueiness Support Department weie . present to �ive a revised proposal to tke committee of a Small Buainess Loan Pzogram. Ms. Moore reminded tke committee of tke idea o�a Small Bueiness Loan Progxam tkat was presented at tke previous meeting, kowever t�e committee requested additional reaeaich be done. Programs all over the country were atudied by Ms. Mooze and Mr. Lanagez Ms. Moore stated that the overall goal of t�e City's Buainess Loan Pro�ram ie to promote economic development by aesietin� local existing buaineases t�at wisk to expand remodel oi improve their operatione, create new business categories and ultimately eliminate bligkt. Tke Business Loan Committee will be responeible for guidelines establishing who the City is willing to do business witli and wkat type of businesses tke loans will not be available �or (i.e. adult entertainment or industry). Ms. Moore suggeste that the C'ity uti�izee t�uee types of loana: 1.)Loan Guarantees, 2.)Subsidized Intexest and 3.)a Revolving Program. T�e natuxe• and credit worthiness o�tke business will determine wkat type of loan to be used. • Wit�in tke program we will need to anticipate �ailure. Reseazck indicatea tkat some programs haue up to 20% �ai�ure ratee. Repayment to the City not only , comes in tke payo{f o�tke loan, but also in reapin$ tke bene{its o� economic development, increased revenues to the Ciiy and the improvement to the quality o{life to the citizene. The �oal is to have a succesa�businesa.loan p=ogram, to assist in expanding business within tke City; to generate a new economic nicke, impxove tke aesthetics and stimulate new business. The geneial criteria developed tkus far includes: assisting businesses that kave a good chance o{success and assisting tkose whick compliment t�e economic goals of tke City. 2 Minutes I'Inancc Committce Ms. Moore atated tkat t�ey anticipate wor�ing wit� smaller businesses, start up buainesses and thoae who are wanting to expand. Mr. Je{{rey as�Zed if there would be secured lending. Mr. Lanager stated t�at there would be secured lending included in the underwriting. Mr. Campbell ae�xed about t�e 20% �ai�ure rate and the type o�business w�ick made up that numbes. Mr. Lanager stated that the majority of the fai�ures were attributed to restaurante and start up businesses. Mr. Diaz stated tkat tke types o{bueinesses wkick were attri�uted to the 20% loas would need to be detai�ed prior to submitting t�e request to Counci�. Me. Moore stated that mar�Zeting of tke success etories would be very important in the succeea of the piogram. Mr. Diaz etated that coordination witk the Promotinns Committee would need to be done. Tke committee members for the Businese Loan Program Committee would include two commercial lendexa ancl an alternate. Redevelopment sta{�and the Director o�Finance would be non-voting participanta in t�e committee. Con{identiality of the recoida is being reviewed at this time. Records may posaibly be stored in{ke vault. Mr. Spie�el suggested t�at applicatione be reviewed by Buainess Support eta{{ and then by the Loan Committee. Any and all appeale sliould also be xeviewed by sta�{and {inal decisions made by tke Loan Committee as well. ML. Crites suggested that a budget be establisked and distribution o�the {unds be determined by che Loan Committee. Mr. Crites stated that review of tke applicants by Counci�woixld not be of quality. Mi. Spiegel suggested that Dave Erwin review the possibility of Council bein¢ excluded {xom the final decision. Mr. Yrigoyen stated tkat {ox xedevelopment projects in �.'oachella, loan applicants were asai�ned numbers ae a courtesy to tkeir �'ounci�, to allow �or anonymity. Tke committee agreed t�at t�is idea would be very bene{icial to �.'ounci� and the applicante. Ms. Moore ae�ed tkat t�e Finance C'ommittee concur witk t�e �ollowing: 1. Form a Loan Review C'ommittee t�at will design a loan criteria to review the applications submitted to tlie City; 2. Direct the Business Support Sta{f to mat�Zet t�e program to the local lenders in the community; and 3. Fozmation of the Loan Fund Program wit� �1,000,000 fcom the surplus fund. ' 3 Minut;es I'Inancc Commt�tce Mr. Diaz stated tkat a� iesues be addresaed prior to ta�in� tkis to Counci�. � Mr. Maglo�suggeated creating a new entity and tken endow the �unding to t�at entity. Unti�that point, none of t�e requests skould be addressed. Mr. Maglo{f stated that he was not sure tkat the City should be in the banlzing business. Mr. C'ritea posed t�e question, "Is there a bettex way to spend �200,000 (meaning tke 20% failuLe) for businesses in Palm Desert?". Mz. Spiegel stated tkat i�we loan the money to the emall bueinesses and axe able to improve sections of the City whick would not be able to do so witkout our assistance, we are receiving a g+=eater bene{it t�an the loss of 20%. Mr. Campbell stated tka4 he believed tke Loan Pro�ram was a gxeat idea. On a motion by Mr. Campbell, seconded by Mr. Diaz, the committee unanimously concurred with the rer{uests of the Business Support Staff. OLD BUSINESS A. Status o� Public and Private Parinera}iins Baclzdround C'kecixs {or .5ection 4 �exe were no ahan�es to t�e previoua mont� report. B. Boncl Issuance� Palm Desert Financin�Autkoritv There were no chan�es to the previous montk =eport. N�W BUSIN�S5 A. Citv and Redevelopment Adenep Investment Schedule Mr. Je�ey reviewed the reporfs. The City.portfolio boo�x value shows an increase o� approacimately�14.4 million due to the receipt of sales tax, assessment district pay o{{s and property ta�ces. Mr. Je{{rey pointed out t�e divexsity o�t�e port�olio to tke committee. I�ue to lower inteieat rates, t�e portfolio shows a Iower mas�et value. Compaied to tlie LAIP yield, the City is still akead. The Redevelopment Agency port�olio shows a �12 million increase. The incxease is due to t�e depoeit o�t�e pxoperly ta7ces. Mr. Je�rey stated that the current interest rate of the portfolio is lower than that of the C'ity�s due to many s�ort term investments. Receive and f�e reports. B. Review skort Term Inveatments Maturind in Tune. 1999 4 Minut;es I'Inancc Committce Mx. Je{{rey reported tkat there were no investmenta maturing in June. �eceive and �e report. C'. .�tate o� �.'ali�ornia l.ocal Adenev Investment Fund Montlily Report Mr. Gibson reported that the LAIF Statement fox May had not been received yet and would be reviewecl at tke July 21 meetin�. D. Montklv Financial Report for C'ity C'ouncil for the montk enc�in¢ May. 1999 Mr. Gibson reviewed tke reports and as�xed if there weie any queations. Mr. Gibson higl�li¢hted that the tax inczement zeceived was �1.6 million lugker tkan anticipated. Receive and {ile report. �. Parlxview Pro{essional O{fice Builclin�s - Financial Reports Mr. Gibson stated that t�e O{�ice Complex continues to do well. A new tenant ie cuLrently in t�e process o{{illin� tke laet vacant o{�ice space available. Receive and {i�e report. H. Commercial Paper FI Mec�ium-Term Note Issner Lists , Mx. Je{{rey introduced t�e documentation of his xeaearcli wit� regards to various Commercial Paper and Medium Term Notes. Mr.Je{{rey sought xequested to increase the number of eligible companiea which provide MTN's and CP's in ocdec to diverai{y the City's Investment Portfolio. On a motion by Mr. Erwin, seconded by Mr. Campbell the committee approved to add the eligible Commercial Paper and Medium Term Notes companies as listed in the financial anaTysis. I. Consideration of Assessment District Number 84-1 Liens on Rec�evelonment tldenw ancl Citv Propertv (Toint consideration with t�e Palm Desert Reaevelonment.A�ency� Followin� a review, by MuniFinancial, o{Assessment District 84-1 wkick covers the Desert�illow paxcels, sta{�has realized t�at a new map will �ave to 5 Minu�;es I�'Inancc Commi�tce be done due to various pacls for�otels and timeshaxes. Witk tke recoxdin¢ of tke new map, the property ownexs will need an engineer to reapportion tke assessment to t�e new pazcel map. Sta{f kas met and has agreed that an avexaging method would be �air for both the City and tke Redevelopment Agency. The City sta{{is xecommending that we pay o{{t�e entire assesement wkich would sa�e tke City�133,9fi5 0� interest. The {unds would come �rom a newly created {und called Golf Course Improvement Fund. The RDA is recommendin� to pay tke assessment wer ' tke life of tke bonds. T�ie would most bene�it t�e Redevelopment Agency since they will be able to utilize the funde for various other projects malzing the purchaser responeible �or the payment o�the bond. On a motion by Mr. Campbell, secanded by Mr. Erwin the committee agreed to pay off the City portion in full and pay the RedeveZopment Agency portion over the life of the bond. REPORT AND REMAR S The committee decided t�at t�ere would not be a meetin$ in August; however, all ieports will be �orwarded to the committee mexnbers. Mx. Campbell etated tkat ke would not be at tke July meetin�. N�X`1' M�$TING DAT The ne�ct Investment Fd Pinance Committee meeting will be held Wednesday, july 21, 1999 at 1:30 p.m. ADJOURNMEN'T Upon motion by Murray Magloff and seconded by Russ Campbell the Investment &Finance Committee adjourned at 3:00 p.m. . ' Respect{u�ly submitted, 1� Vexonica 1.. �arca, Recordin� Secretary 6 T � Q O O U Y1 N U Q a � o > ¢" c _ _ � � �� q � _ `o ui a N — � I N � N N O� 1� O m O ,Q, N Q Q a y V p b '_J N N N N r Im�l � Nm (p a �j O � �j > C � I � W N N N N N �ll N V N P O N � O � C O E y � `o U x H � � a d U � � w L � w c n � o .- m � o � m n �n � vi $ " v a V O O m � � � � ^ m N y�j Vl � � c 1� � .- � T � w L .. G U o � d — U � � m m E w � � m u p (p p c � � � �' .0 b � N � N Q � ' o ' N t0 A f � N W � N � �G �j N � � N N � T d o � � ' U N i c � � Q E 'a c o �O I E �`m, °i �� Q tO N b O�i tm0 OI �i N ry N N O I ! O .t.. v O �C+ Hl ^ W O N O� N t0 N Cl O N �' () 'S � Q ory V � m o a E Z y m ' I m o � O � o � in m v M g � $ o ewi, v�i $ � m ' � o � `� � c > � m j � � o � 8 �y m m ^ ri op n b P m ai � V � o u � - Ol O m O O t� b P O T N t� (nO, O � I N E G � ` O N C O O l0 I� th IP� 0 N 0 � N W N � L T L r/y iJ N Q Q Q O �� f� OD t� O C'1 10 l0 m K tl1 �I � y�p � 3 N U LL C m N � P O (O O N P Ul Q O (p (p lD p E W G� 1D � � � °' •= W d � � � ; a o � � � � E � � { I � n n o o � m r � io r� o u m �e � C �7/� ^ j C n M N � � � � J �O vI (Y� I � N � N m a � y I o r .o � U N N O 41 Q O N d N N t0 1� N h O m W N O t�l N N M y n y N N O � = � Q � y O !� T omJ M O> O! O O N O o m �I n o n fp T ^ � ' E O � � ; qj d m O � A �p N m m � g m N p °o OS ' �II ' � p. � L � � O N nl O� t� C� O� b N < O I� W 1� t0 P U � Q N N � O N � W O m N t7 � � N pi N � N C Q � � } L O m O O m 1� N O O t7 I7 fD N W I 0 C] N O LL � C � Oa v v v m o o m m m v e < � m i. �i E o+ y m O1 Q ^ ^ � 10 N 1� N N P N f0 Ip � I '� y � ii U a tO N N � I n I '' ; N N O � '. � i � 5 d � y I ', , '. N � N N �I '� ' Z' O w 3 I U H � y y > o � 0 H n � i N O N O 1� p O O 0 O N p N N � A '] O W O I7 O O O O O N S O p� 1� b Ol � A d jo �O o � S oO oO m g oi g g ' C o 0 O Of O Oi O O O 1p O Y O O � � !1 V N N N VI N N O O O O t7 tp pj N (V q h � W Q Y] � N O n 0 O N N O l7 l�l fp � W tp O O V t�l P o 0 o n] th m O �(I p (p q L � ^ 0 HI N � � O fD N N (O N O �I 1O A �I I� V e 'r o a ii � I "f N J W � Q � y I II Z r N N � Z W �I LL W � N F � -- y �I W N C N C � d W m N F � E � Q � L W dp � � C � O � Q � � � � � N C 6 5 '� » � � U � E � � w> ° w � � ° a5 � m �y a u � A d O a > Z > p a � N a � > « �a m � � N � � U � Z Y Z Z d N O' W � Z � I Y T � � 9 N m � N `I � > p w U w � � w r � a w E u c �' c W o� �` :: n � - � K H (� Z C� K Q � d' N U (� y a�. y N C N N A w E �' a � ¢ a �' � ~ N ¢ m a � 'Z E a m m n > m d v) d S m ¢ � 4a qa � �� E w 4a � °o� v U U W c � � � r u d �' o U o o � w r x r w q t � __ � � � m �^ T� m 2� o ' y � w o w w o o m � r °w o m � o u o 0 0' > > � a c� � � � U LL J LL � U ti � = fn LL I� U d� Q H F� f�. U Q W � d r A � $ � o g o o g o o � � � � � � g o m o � � E � o � m � ~ Q o g A m� h � m � � C � � o � C � C C C C C � � C C C � � C C V > p f � m � m C � � n @@ � � m � � � � $ m a o a n N N � C � � o g > o � o 0 0 0 0 0 � � � � o � o 0 0 0 � o 0 0 0 $ o om � op 0 �q � O W � N m � � � � N m N � � � N h � � � ' I � � � N � O � N a � � � � dl pypy8 o LL h Q Q, m � r r m m m m m 0 m n r � � Q O b Y N N H O � � � � ^ O D a � W N N N N N N N N N N N N h h Q ? 6 a O N N N N b N O N N N N N d � � N N N � N N N N N N N N N N N � � N W N N N N R N N N A a � a � � � � � � � � � < � < � � � � < � aaal � � < < 8 s D� N O N O N O O N N N N N N O O O � � N O N � O � � � O � O « A r N ' N N O N N ! n � N N N O N � m N 9� m N N b N N � 0 m � m r n n N N N O ry O N P r n y � N r � N � � � N � � b b N n n N N N N N b N N m r h N N � r M Q n N Q M m � � Q b N M M � � Q A � N T T S S Q Y r N � m � b � n O r m � N m � N � P O 0 N N � ' O o O m h b N � � ' � m � h m M N � N N � O S Y r q � N Y Oy O O A Np � N � A Q �p N q m r r N Q q O T N r N N b m O N � � � O � O � m W m N � T A O r � � M O O S n O m N N S � O M � � N m N N P a o m o 0 o m o e � � b � N � N � M N N � M � N � N � N � I � I m O N O 0 N N O N ^ Q M � N h h ' N m N O N �� N N N O O r 0 0 � � N r O m r N O N Y N �p r r r A O r � m p � M � O W ro r N j � � � � � � M M V M N b m � �Q � b m N N f m a n � A � m Q � � Q � � m Oy N r N N n M Y O � � � � O � � rn m � 9 N 9 m m � � � � � O O Q O � m r A O � q � � O � m O O N O � � y F � � � 0 � � N � N V O m � � � N � N � n N N C w � W G�i � W Gi � � .°1i o 0 0 0 0 0 0 0 0 0 0 0Q 0 0 0 0 0 0 0 0 0 ��I rn m ' o o g g $ o 0 0 � f0 C � � og0000aooa � 25ggggogg � o � m 'ml oog �ug $ oo � C � f y O �p � Orf � ' � O O�i � m Q t�p O Op [pV O b O(p n N O O I S M1 S O O O O O J (a (� (� O M (7 m N 0 N LO m f0 O 1� t"1 Ol O O O O OI O O O O O P QC � � � � ^ � N �- N �- O� P Y C] � N �- fV (V (V � a O � ' 1"1 N N O O O � d« N I� h I� 1� 1� 1� !� I� 1� I� 1` 1� 4� m m m m A 1� W Oi N 0 t0 W A F � p � m rn m m m m m m m m m m m m rn m m rn m m m m m m m m m a t o �,' m m m m m m m m m m m m m m rn m m a m m m m m m m m m (,) � � �l � � � � � � � � � � � � � m �o �o �o �'o m $ � u� A m m m a . O o .- .- F F � � � � � � F � � � � .- .- .- .- . � rv � .- .- � � Lv 1 I� G. N f f N ' f f N N N (V N (� N N ' N N N !� '' � m N N N IA I(f N 1 �L � � � � � � � � O ''.i O O O O O O O N O V ' N ' rn u w e� mc u i �c rt V v U iGo ae ! rv' p 0000 � � Z Y Y �N/1 N N1 y �N/1 > > > > Y > y y ) > > > r > > > > > > > n a �l ¢ Z Z ¢ ¢ ¢ ¢ ¢ 6.' CC d' R' R' 0.' 0.' d' 6.' 0.' K C K IY CL K IY R' R' R' O N � J � � 7 � � � J J � � J 7 J J 7 7 7 � m Q Q [7 U' (7 (9 U' tQ� 41 V1 N f� N tQ� t� tQ� t� UQ1 N t/1 UQJ V1 NQ NQ tQ� UQ1 tn ti � m m � � � H F- W W W W W W W W W W W W W W W W W W W W W � W Q Q � � � � � � K K K K � � K K � tt � K K K K K K � K ' r r r r r r r r r r r r r r r r r r r r '�. w , v o o Z Z Z Z Z f/1 f/1 f/J fn N N f/) f/J f/1 N fA fn f/J fn f/) tn fn N N f/1 0 � W W O O O O O W W W W W W W w w w w W W w w w W W W w y � d � f g F F F F F r r r �- r r r r r r r r r r r r r r r r m Q q LL = = Z Z Z Z Z ¢ ¢ ¢ a a a a ¢ ¢ ¢ a ¢ a ¢ a a a a ¢ ¢ � � � r r r r r r � r � � � r � r- � � r C I/J (n (n (n N (/J (/J (/I (n N N N N N N I/1 N (/J (/J (n M d N J J J J J J J J W W W W W W �W W W W �W W W W W W W W W W a ', � a � � � � � � � � ^' r �- r r r r r r r r- r r r r r r r r r r o �, o w w w w w w w w � c , � c � 0 � � � O O o a z z z z z z z z z z z z z Z z z z z z z wi m � w w w w w w w w � 7 7 � � � � � � � � � � � � � � � 7 � �i U � � LL LL LL LL LL LL LL LL O O ' a a ! u � ' N N I 2 u I E tp la � Z O N N N � N O N m p H N C N f0 1� m ' � N O p N 10 1` Of y N (p (p (p (p1p1p I� 1� 1� 1� !� 1� l�1 t�l p N N N N � O O O O O O O O O O O O O O O O O O O O O O O O O O O � � � � � � � � � � � � � � � � � � � � � � � I V � � � � � � � � U O Y $ � U iZ ? O Q � � n (7 N � N m J a �' iFi O O � S m m � � Y U a I JQ � � Y � � � > '0 2 � � � k � � � � � � � � � k � � m 3 3 � � � li K � n e Z ap °p LL LLp �. � � m ro m m m �w ro ro m w m m m m m m m m m m fr �i W �n � n �n � y N N N N N N N N N N N N N N N N N N N N r I W m m m m m m � m � U � m` m m m m m m m m m m m m m m m m m m m U 'I LL m m m m m �n �n �n � y �w I g S o o � � g o o g � � m w � a o m a� �� e n � � � � C C m II N N U ¢ � a � � � o $ o o � a o 0 0 � � $ � �o � �.� m m �n � o � � p in pp� m m pOJ o1�. � < a .- � � � � � � � h � N N � N m N y p N c0 !O N f7 Y a ry 10 q � � 6 I N > N N 17 O O O T q t7 (p O O N p� h N N 0 O O O o O O O � �D '� N N lV �p o I� m OJ ln ' 0 �p 1� G! O� ' b ' 17 (7 l7 (y CI 17 f7 4 O! Q N fV N N O l� O 1� O O O� O M I m OJ 0 0 m 41 � � W N N N Vl 1U N �O b h N N (O N N N Y! Y! N �t> N O p p P O Q O d K t�l N R N N t7 R R � � $ a" '� � a � `� a 'aa � a" `� `� dd '� a" a" aa '� '� 0 0 f I E� N � M O g O � N N O O � O N Op O I O O O � � O O d N �p ` t� 1� � N O O I 0 � m 0 b m � y a N N O C) O N t7 1D m m CI I � � N � �D O 1D N h N N tp N N i Y Q ej p Q Q Q � � p p Y h 1� P I O O O p p O� N h Ol �p N N O O g � O O O O N Omi N '�J Y l7 N I O O O O O N(p q t7 Op� th Pp t0 IO O O � O m 0 ' O O O O O O+ On! W t0 � Q O O � O�f P n I O O O O � < � f W T O O T ty O mV O O O O O O O O O 1` f0 1� 0 1� �p O) 01 1� I � O N w m m g g g $ e � N Gl W m o � n rn n m o n a a v o n .- o m w m o �i v v m . ry a � P Y fV lV N P O N N N � � � N � 10 lV fV f j I i � 0 m � O T Oml � 0 O� OJ W Ol I� I� W Ol W O O O O O p O N Ol N ; 10 (yp O OQI N � Ih pQi I� e- F m N Of 1� C (p �p O O O O t0 h 1+�1 A 01 �I 1� OI O O h f0 W N fV O O fD Q 0 �Q O N t0 Y Im+l W < < V �.� U�. �f �f_ Of m N O O A � O�i m VI O I O N O m N N � N � N I P O ' � � � C'I 01 N N N � � � �- 1p '. N N N N Q' N ' I W d � I I N £ �n er I p � ' W d � d OI ^ � �� pp p O pO pp 000 O ' p O 00pp NTN Q T ' � 9 I7 , S O O O O S O O O O O O � S O O �I O O p O N � N W OO O Y O O O O OO p O O O O O O O O '� O O C O O O O N YI � C r 7 O m q �� O O O O O O O O O O O O O '� O O O j Iy c �O O T 0� � O O O O O O O O O O O O S O O O O I �D c M C C � r R N O O ' p000 O 00000000 O � pO O 00N 4 1� m Ol � O O O O O O O O O O O N N '� O N N o] O 1� J IO y M � P O . O O O O O N S O O O O O N O j �(1 b O N N Q^ C � � N O Y � N N N V O N N N N N N N � t0 I N N N �I I�L O W = I LL • Q � ��i � '�i. O Q 7 i il O Q I } � ' u e; '� ''� m m m m rn m m m m m m m �I m m � � O n � i � m m rn rn m m m m m m m m i i. a �. t O i 'I m m m m m m m w m m m m rn m U � � � � N � � � � O M N N ` � m �I i a. p' ��i O o 0 0 0 0 0 0 0 0 0 0 0 0 a a d N N N I O �I � � WC T O O O O fV n A o 2 � o K K U U o K w�i W W ¢'m �: LL oP O O O ' I k � � Z Z °i �V �U oi d F H I � (n (n O . � J Q Q N F J q N Z ri I Y (n N (� o d d Q Q F H ti ❑ a �O . w � zaaa � 3 � � r- raa .- w � I E < [7 (7 [9 z O O a a w w ¢ a i I- m h 1- 1- '� Q U U Q Q U U U Q I U) U) N tA N N Vi z s E E �� w � � c� c� c� c� U � �- t� F- r � � � W Q J J J ❑ Q Q �'. N $ Z Z Z Z Z I Z � < < Q I > W W U U N N . W V I W W W W W W W i � Z Z Z W m d' K � � � � �' � � � � � � E E y W O O O I Z � U U U U O O d U w N v1 tn m tq N w I! z m O a a a o,I ¢ ¢ � � � w � � y�'�, w J y w w w w w w w � � w � x z z z A I rj a � � w w � E A iI Z w A i z z z z z z � a' �� a al �a � � �n a' acai � � �a �a �a �a a' � �a a � � � � � � � d 9 Q y W W W W 9 � � � 0 W W W W 9 W W y J J J J J J J C . U G ' ❑ O � � C � � K � Z 2 Z Z G Z C W W W W W W W h A � O • W W W W W O Q Q Q W W W W q E W W ❑ � � 0 0 � � � � '� Q J � . LL LL LL LL � � IL LL LL U' fD U' U' g a (� � li LL LL LL LL LL LL LL O $ O . O O F, O '�. Y N LL y ,. W � I � I ? y �i `u II Z �,�. aa0 I �I O � � o I� j m ... �p �n � m M �n N o � O �n ��p n m o ry i II tn 8 8 g 25 g g o 0 C W N II U ^ O � m �'. (n Om S OJ 0 O� m m W . � S S L � N N � � � � _ � z > Iwo � � � a ? � � � $ ��. r = _ 'Ia y o U iW f ! J < w . W �,iQ W a � � U Fy' 3+ ��,. J �li � � Zy Y� ry � Q Q � U ¢ Z ¢ n W 3 3 F 8' y �: U I O � c�i �'i Xi � e ry m u� �i �i g g � w � W J ti m o f=.1 .. � .� LL in n n n f tev �i �i �i �i �i m n I U o �i LL rc . r� m �o � < „ m m U � a i o � o � E Z � � � � � � �- � � � � � � � � � � � � � � � e.. � � � � � � � � � � � � � p N ° � a �� u � gi M cQi m m m m n � �i gi eQi �i m m n � n �i �i �i n � � c4i cQi n � n �i �i �i w�i � m � a n s m m m m m m m ro m ro m m m m m m w m m m m m m ao m m m m m m m m m m m m � S' W Q P O O O V Y O O O Q P Q O Y O P O O Q O Y Y Q Q Q Y O P Q Q Q V O O P � M N R R N N R N N N N N N R N N N N N N N N N N N N N W N N 2 0 W W W W N � 8 < < < a � < a < aa � � aaaaBBa � a8 � � 8 � aa � � � � aT � 0 f � o g o 0 0 0 0 0 0 � o 0 0 0 0 0 0 � � o 0 0 0 0 � o 0 0 0 � o 0 0 0 0 0 0. 0 .d. n � � n n � � m m m .� n n n n n n n m m n n m M m n � m m w� m n �a, m m m m m m m m m m m m w w m m m m m m m m m m m m w m m m m w m m m m y V Y < < V Y < C P P P O O O O < P P O Q Y Y < P Q Q C O P P P Q C < Q P J Y O O O O O�i P b r m N O O O � O O O O O m N n N Vf M O P S P N r O O O O ; O O O O O 0 O1p m O (V I(�p N O < Q O O O O m 1p � t� Ol n � N ry O � � O O O O O r 01 M ID � N w O y m � t7 1p� �(f M th TC N N tV t+i m m V b b m r m ' O h � Vf Omi m V r P 1� N N N � N N � � Q O O O O W P 10 1� 0 N O O O � O S O O O m N 1� � N � p P O O N h O O O O ; O O O O O � � � O N � N O m Q O O O O � tp V 10 N m � m N p N N � O O O O n Of N � � Np �O I�O m P n ' Y N 0 N 0�1 m P r q < � 1� N N N � � � � N N � � C d W a� � N E y rn W m r+ o 0 0 0 0 �o � o r o g � � o 0 o g gi o m v� � N m m u� o <o ry H S g $ g Q � 7 � � e o 0 0 o m v r w �n o � o 0 o m ti n m o v o v w o 0 0 0 0 oi o o H in o � � d 6 d o m �d m oi � ri o o cV n o o c c o i0 C � � � m m m `� `�' `�i m � m �n' v�i m m m ry ry rv � � C � � `m n ui e oi ai vi r oi ui w m m n J C10 Vl M a �+ Q e m � n � ' � v� '� � v°'i ry rv � QI� L � � �(1 N � Yi O Y ' LL - 0 � O � c ¢' � d � � � mm � a � t� m rn m m V � � o Q o � a a � r r r 0 0 0 0 ry ry o�u w c N Q m tn t� t� N Ul t� t� t� (� tn N N y N U) U) //1 Nr fll f11 f11 fn N t� VJ Vl N fA tyf-) N Ul fll N f/1 f� tA Z Z Z Z Z Z Z Z Z Z Z 2 Z � Z Z Z Z Z Z Z Z Z Z Z 2 2 2 Z Z Z Z Z Z Z Z W W W W W W W W W W W w W w w w W W w W W W W W W W W w w w W W W W W W � � � � � � � � E � � � � � E � E � � � � � E � � � � E � E � � � � � � N N N f J y N y y N N N N N N f~/1 N N f~/1 N N N y N f~/1 y y �~/1 N N y N y � y y y W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W D D D > > > > > > > > > > > > > > > > > > > > > � > > > > > > D D > > > Z Z) Z) Z) Z) Z> Z> Z) Z> Z> Z> Zy Z> Z> Z> Z> Z} Z> Z> Z> Z) 2) Z> Z} > Z> Zy Z) Zy Z Z) Z> Z> Z> Z 2) H F F F 1- 1- F F F F F F F F F F F F F F 1- F F F F F F F F � V- F F F � F d J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J W W W W W W W W W W W W W W W W w w w w w w w w W W W yJ W W W W W W W W N 0 � � O � O O O 0 O O O O � 0 0 O O � � O O O O O O O 0 O 0 O O 0 O � � N LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL � LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL � C � O � � 1D N P VI � (O � Ih l7 l7 m l�l m O O O O O O O O O O O O O O O O O O O O O y Q N N N N N 17 l7 � a N N N �N N N N N N N N N N N N H H N IV N N N ^ � � ' ' ' ' ' ' ' � } � � � � � � e� � G N W � fY � r � d J - g' j p o' U LL � N Z`� a> ;O � Q � q q V � 1 S� p y o € o � � � � � � � � � � � � � � � � � � .- � � � � � � � � � � .- .- � � � � � � a d p p pppQpp LL N > O O O O O O t+ � O� O� I7 m m M I7 m m � t+J M th C� m I7 m t��l m m m m � t") � t��f m m 6 c� m m � m m � m m m m m m m m m aD m m m m aD aD m m m m m m m m m m m al m m m m m m m m '� w 6 6 6 6 o e v v v v v v v o v v e 6 a 6 6 6 v v a e e a a 6 6 v e e e 6 � � a � 'd� TI < a � '8� � � � < � IIe � � I � � a '8� 'd� � � � a < aaa � � � '8� � � s a;; o � � � o � � o 0 0 0 0 � o 0 0 0 � � � o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 �� m n n � n � M m w� � � � m m n .� n n � m n n M m m m n � m m m m m m m m m m m m w m m w m w m m m m m m m m m m m m m ro ao m m m y P < O O O V V O O O Q Y O P Q Q O Y O P Q Q Q P Q Q O O Q Q O V Q P P Q � O O � O O S O O O S O O O O O O O O O O O O O N 1� O S S O S O O 10 (p S N ; N O O O O O O O O O O O O O O O O O O O O N O O P O O O O O O O O 0� O N Y m O_ " �' N N M p O N p m A 0 (7 l7 N OI m � m � m j O O � O S O O O O O O O O O S O O O O O O P O N I� O O O O O O O �D tmp O N jN O O O O O O O O O O O O O O O O O O O O N O ! ' O O O O O O O � O O N W V N< N t� ;' � . � f�l N T m m m � y f m � C N W a� y W GI � � � O O � O O O O O O O O S O O O O O O O O O V O N r O O O O S S O � � O N Q QI C � N V1 O m O O O O O O O O O O O O O O O O O O tp O 1� N O O O O O O O < O O N IC � � m Q � � N N t� . �L C � � rt o vi ti r Qw � y M n � " m ro m Y W I.L O � � O} � O a m u m m m m rn rn rn rn rn rn rn rn rn m m m m m m m m rn m m m 0 p m� m m �i �+ �, �imrnmrnmmmmm �i �i m m � � � mrn m m m � a � to m m rn rn m rn rn m m m m m rn m m m m U � � � � � � � � L L L L L � L � � L � � � � � � � ? � � j o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 i � a � � � n n n � � r � � n n n � n n � n n n n n n n r � d o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 tl Y WY W C > A Q m N h N N (9 y N (9 N N N N N N N N N N N N N N (A N N f� (O fq (p (p f0 f0 f/1 f0 N Ul � � � r r � � � r t- t- r r r r r r � � � � � �z z i z z z z z z rz z rz rz z z z z z z z z z z z z z z z z z z z z z z z w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w � E r r � � � � � � � � � � � � � � � � � � r � � � � � � � � � r w w � w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w w z z z z i i z z z z z z z z z z i z i i i z z z i z z z z i i i i z i i _ _ ... _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ � � � � � � � �� d J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J J W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W p � 0 0 � 0 � � � 0 0 0 0 0 0 0 0 � � � � � 0 � 0 � � � 0 � � � � 0 � � � LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL # C E � � u O n(pp �(pp m�pp o � � � � � � � � � � $ o o � o 0 0 0 �' S' �' o 0 0 o S o o $ o `8 0 � a N N N N N N N N N N N N N N N ! N ' f N N H f f f f N f H ' ' � � � � e- � � � �- O � C N � Q a C � � a -1 - u � o 0 U LL K �p 2.� N N N N m ` a w � g � g �� $ / o m o o m r �O Q ui a � '� v� o n � v� U � Q o � 0 0 � � o 0 0 � � m n � .- fo r � Q r �- rp E � O � � � � � � � � mo ' �I � ' �I ' m a � a a m - cQi c4i �i � � m n �i � °D v v � ' $ $ g gi � m a p •1 Q m m m m m t0 m m m 'N O O N � � W 0 P Q Q O O O N Yf YI Y P O O O O O Y N Yl Mi d � p N W W W N N N W N R q W ga" a" � a" � '� ¢ � I a" a" '� � � 4� � M t"1 M � t") m N d e P N �p 9� t0 m eJ a0 m m O O 1� W y V V V O O C �n �ti < O V Y < � t�l O S Omf S O O N b !'! N N � N O � S 10 N � T � (� O O O O O � 10 NQ f V Np Q (� �'l Op O o0 m n A „ x V] N N Ir0 Q � N P O O I O S O lV �D 01 N p N � �'J m W 1� 1� N Vf W O tn N W O� O N � � u' � � n � M m � m v °' � � M m n o m Q � C V l7 � N I i N � Y � I ' � � � S O Oml S S O O � � N In 0 N I O S O � � � N q O O O O O Ol tQp N N O �p �'1 Op S O fp N N� V! � � ry Im0 n t0 N N O O Y I O O O � b A IWO 1 N n t0 O I� N YI b O � N N h 0 � ^ N O ' � r! N t7 ' rl C') M b fn N N V •l 17 t7 a� OI V O p O O N � (n � O h N N m � N N N O h � y N b F � � � c E � w d � W N ; � 7 (7 O O A O O O I�� Op Op Op '' N N m N O O O I O O O O�1 Q OI C � R N O O �O O O 0 � O O O �'�. O r m � S S O 1 O � O T C 10 � �n �i u �. o 0 0 �, v� v v a o 0 0 � o g p p, C C � � W N � OI ; O b - I� N 1A b O N N1p � 1� N N W Q/� G y � a � � �'1 �' � � � �,. m 0 � C! Q m Q � O O N � LL � H p lV ��i (O 10 � f7 � N i N N V � W � 0 01 I� O0 p a a q m m m m S'i m m li m m m rn F- a � r� w w m m m m m i w m m m V � ? � � L L � � . � � � � � � o 0 0 0 0 � � . \ � � � i d a o 0 0 0 0 '�, � � ' ' � � o 0 rvry a ' u � m ', o pl V 0 �'1 ' q � O N � q OI N Ip ' Op � 1` O 0 � N � O '. 01 1� i m m m U U Q m N �. 1� . N �. Q O W 01 rv ,., Q '� ,-. m O 10 i fn fq m W I m � w O N N M m H �I � � d �'�. � d � II K K Q a Y n N f9 tA fA V! U1 I � � d w > > U' (7 r r H H r r � N m W w � N N ~ ~ 2 Z Z Z 2 2 � � �, Q Q � � � � E f � � � ¢ a ai X '� � � . z z �i �i ai u~i N � w w W o � '� w w �' O O > > > > > > w � � �'... 3 J a u ' r �- m '�. rF m m Z> Z> Z> Z> ZT Z> n F F w N � m F � n I Z Z A W F F F F F F � I N N > , Q 3 U � t� N � � J i i J J J J J J a W W a I'I � �' U a W 0 a � � < a � W W W W W W C � ~ ~ C � (A IL C ~ ~ C � 0 L C N ❑ 0 O O � O A � Z Z A W LL w Z Z A h W W � A _ LL LL LL LL LL LL 9 '�, J J 9 U 0 O � � � � LL LL � JV O O O I O O � Y(. Y � a9 f/� � ! � i f J L N N r N � V1 �. Z y b e Z W > = � � F- � _' �� O � O o o � m ry ry � � n I U n m m f oo y m o %y 0 > a ` f ! ' ^ ' li O o o �, U e v v � �m g u�i � � � i N '. a N N N O N N � 7 ❑ W � (� O N W J Q Y T� < W � � Ij Y I10 Q � y J Q 1� J o m � w ° c� a :. °° � � � � a W W 1- m m = I F II W N mro A � j O Vl � � � ' F W "� "� � U 1� I 7 m m 2 i N t� M n � r � � Q o a C7 > o Q �.� .- � � � � n� � €. N ° � a � � Q O O O O O O N � f, W O O O O O O Yl � F 6 Y a � f a m 5w 9� N tl � t7 1� Oi �- N M N t7 7 N OI N l7 Y OI 1� O 1� 1` W N � 1� O O+ N 0 q �p � m m 10 N 1� p O I� y Y Ol N�p 0 0 (p A b V Na p N m fD lh N M 1O m I m 0 m t0 �O tD o'i n Y � [7 1� OI � M 'J N O� N M O m 1p W N � h 'a� O! N N � m 0 tp N I� O m N(p m m fD if N {np (p (7 N � r R m � � � � tO Y A LL C t W G� � W d V � � . � � 0 � ur � > � � C 'ip � `w a Q � � M a m � N � LL � O � O � � Q' } m d �'i m m m �i �i � a a L C T O� O� O� N 01 V � ; ; ; ; ; ; ; o 0 0 0 0 0 � a i� � r r r n � o 0 0 0 0 0 ma u aiOo e R C m Y1 N N m m � � N i m � 7 � Z �+ o . z Ur y � Y N Y u w ✓ U U � _ � U Z U O � Q w u 3 o w � J a � U O � � � �rn n a J� O Z 3 � O � '� u d u � F- a � y U � w � U ¢ y a m � ) n > p lLLi F W m LL W q A t C _ O v � � O ¢ 9 m � c � a d � q i! � � C R C L Y� p U u N � � .q E '^ V A O � r m n in m o U u U F � n � gi � � n a 9 � � � o — r 3 � � � z e y o a U - a+ j = o - U U � c - — — --- � : ; �. -� � � � , , � a � � � . , r �,. <. , .,�*n, :, g� � , . . � � , . , � , o � �' o u�i �+ � � °v c v a:�, S i � s€ '".a F Nx„"," S� i, , i ..1 l" < , � � � � ¢ � � � . � � O yrj � w o n ii Ji � ..�01 ia M1�� O i j O j� � ' T � V l i� ��i' �Fv 1 v.kn � �1.1iM. � r c S � a � � � � , � �, 9 � �.� � �< � m �x � � W � � p � � ._' .Jk w�ime,��` X h- � ' Q ¢ W ' d � 3 � a N ¢ ��al > W N �u , , , � o > wo , m � y p s 9 , , , , � N O , . � �g� m m ' LL , .r�.;, � , m/, m N ¢O W 7 �'� ir" �xy ,lf� � �'�� ti � � � � � � � � � s �6 O iy Q ■ � FLL- ¢ O � � ' �z zx � rn LL d � � ` �,'�"'�^ m o m � � �b y 1 .��M j,.� 14 � q � � ' ' ' m � ib �_ ' � � � � � m V m F � � � � � , m g . �. . N � .�1 i�ry �G� 1 1.; � W . i � N Y � � . � � o n m � a• � .J. ^r'� m o '„J � � � � � � � � � � n � �p a v ; , � a G �,An^ i �i � � . � � � p m 0 < N O � • � � � � � m � ::" A a rsn '� .' � , . . , , , d (%) 011OdltlOd ,;,: � � in o vi o u� o m n v a m n v, a m �j � .a- � � vi vi vi vi v v a a ei � O � a SNOIIIIW S (°�)O131A Og �- N � o � a —�. � � ^ °' a U _ N 'gJ� a $ $ �$ S o� a 'f�' � 53 � ffi 3 mm8 Ny ((p.�^ e ' WZ t 0�O N � � l f J t(DV m V F N : m Q N v O � A `-' W n`n�'r � �O R' .�� . C U e a, ai �i � v a a O 2 W � �. W U a � � y w � oa wwwwww.»�nwww ww � o �� w � r a Y mr I- �U a° 2 "� i. �n ec�$)gQ o�i��i u�8Qin� g �i,ui�i y ¢ � 7 tq �� R � O � � ��i25�eD�^�$�^� �� F � 2 W fJ/l W � � d' rn < rn n � p rn y ��S��F`�,�� ¢ � _ � s � � � � � c°�i�� ee.iN6vi �cee m � � ¢ � � w $ ¢ ' o � � QtA 9 ' o Z w � � � d o o g o -i � �,«,�,«,��,�,�,�,«, �,«, _ � � � � � �,am� ��s�� s � W o � � � g , ,� „ , � Sm �� ° < � I� m o (n y LL � O�i cn $$ I�I� ml� NtOc] W � O ^ Q U y �e�<�a��l��Or I�N O � 6 Q ¢ � � � = V ^oJ O N aD V m t0 v t4 n ^ ¢ � W F- U C { J � ' W V mQ � Q � ^ N J J � 19 f9 di f9 di(9 f9 19 fA i9 i9 tli e9 W U PD IL a? Z � � Z c'� 5 � � ri Q z � � C7 rn � w � N Q U �� > W �� Z J Z �.1��.T A4�11 O Zg g Z�W � w w Z O Q < � tp �� '�Q�W Q Q � I k � O� V� �'C��wc�7�ra v� � ¢w wp�23�a�wa � � I �JQ JQQ��aw��HQ� ��DQ I � �tY s." . . l �`.ua'i `,. S � QCC f2��LLa��W >�� I W �W W JJF-=F�W� YZ � O c0 N t� O � �;ege�o��we� �a< Z � �; � � �; �LL LLUlL72 V1`1LLU C7� C (%)U131A CITY OF PALM DESERT INVESTMEN7 ACTIVITY REPORT AUGUST 1999 EXECUTIVE SUMMARY As of 8/31/99, total portfolio book value was approximately$167MM. This reflected a net decrease of approximately$4.7MM from prior month due to debt service payments. There was an unrealized portfolio net gain (market value- book value)of approximately$183M, based upon prevailing market interest rates. This was only a "paper"gain since there was no profit-taking. Significant changes in investment position are shown below: "United States Treasury.Cou�", The City buys interest-bearing U.S. Treasury notes with maturities of 2- 10 years to invest assessment bond proceeds. Although unrated, considered "AAA". THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$4.6MM DUE TO MATURING SECURITIES. "Federal Aqency -Coupon". The Ciry buys U.S. government agency and instrumentality notes with maturities of 2- 10 years to invest assessment bond proceeds. Agency debt guaranteed by U.S. Treasury; instrumentality debt is not (guarantee, instead, believed to be U.S. GovernmenYs"moral obligation"). Although unrated, considered "AAA." THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$7M DUE TO AMORTIZATION OF PREMIUMS. "Local Ag�y Investment Pund (LAIFI". The City temporarily invests proceeds of matured securities in $13MMM pool managed by State Treasurer's Office for 2,600 governmental entities. LAIF has diversified portfolio (BAs, CP, Treasuries, agencies, corporates, repos, reverse repos, CDs)with weighted average maturity of 180 -540 days. THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$4MM DUE TO WITHDRAWALS FOR DEBT SERVICE PAYMENTS. "Federal Agency •Callable". The City purchases federal agency securities that may be called prior to maturity, in order to obtain an additional premium for that risk, thereby increasing overall portfolio profitability. THIS ACCOUNT BALANCE BALANCE DID NOT CHANGE. "Citv Loa�to RDA". The City has made long-term cash advances at LAIF interest rate to RDA for property purchases. Advances will be repaid in future years from tax increment revenue generated by associated redevelopment projects. THIS ACCOUNT BALANCE DID NOT CHANGE. "Fideli Treasury Pool". The City invests assessment bond proceeds (construction, cost of issuance, and bond reserve reserve monies) in "Fidelity Institutional Money Market Fund: Treasury Portfolio- Class I." This$3.9MMM fund invests in U.S. Treasury bills and notes, and repurchase agreements for those securities. Weighted average maturity is 60 days or less. S&P credit quality rating of"AAAm"; Moody's of"Aaa". THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$8.8MM DUE TO MATURING SECURITIES. "United States Treasury -DiscounP'. The City buys noninterest-bearing zero coupon securities ("STRIPS")with maturities of 6 months- 30 years, to invest assessment bond proceeds. Purchased at discount; face value paid at maturity(difference is yield). Although unrated, considered "AAA". THIS ACCOUNT BALANCE DID NOT CHANGE. "Hi_ahMark Sweep Accounts". The City sweeps excess checking balances into"HighMark 100% U.S. Treasury Money Market Fund". This$905MM fund invests only in U.S. Treasury bills, notes, and STRIPS (no repos or reverse repos). Weighted average maturity is 90 days or less(per SEC regs). Although unrated, underiying securities considered "AAA". THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$3MM DUE TO DEBT SERVICE PAYMENTS. "State& Lacal Govt Series -Time". The City buys special noninterest-bearing U.S. Treasury certificates of indebtedness with maturities of 15 days- 1 year, to invest assessment bond proceeds (to comply with IRS yield &arbitrage rebate regs). Nonmarketable. Although unrated, considered "AAA". THIS ACCOUNT BALANCE DID NOT CHANGE. "Medium-Term Notas". The City buys interest-bearing corporate medium-term notes with maturities of five years or less, to invest revenues. THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$!3M DUE TO AMORTIZATION OF PREMIUMS. "Federal A;ency -DlscounY'. The City buys noninterest-bearing federal agency notes at a discount. THIS ACCOUNT BALANCE DID NOT CHANGE. "Commercial Paoer". The City buys high-grade, uosecured commercial paper at a discount, with maturities of 1 SO days or less, from Fortune 500 companies--=HIS ACCOUNT BALANCE DECREASED�°1'APPROX/MATELY$2MM DUE TO A MATURING SECURITY. — � �. z ` a cn �n rn v� v� v� �n�'"p';�n cn �n u, �n cn v� v� v� v� �n v� v� Z J W W W W W W WC �,�.W W W W W W W W W W W W W - a � � � YY } � � Y � � } � r >- � r >- > r � O U N ' ' ' N O ' O ' ' ' � O O N ('� T (O O J J � � O O O O � O A � � M OQ r h O O OC7 NM �(i � oD lLL�- = � � O O 00 � � C ��f7 N � OaV V O O Na0 t0 �OCOc�7NN a u> » f» �, ca n �if» «nv> v, v,fs, w v, cnu,v, e� v� O rn � Z �� W � � � � � � � � � � � � � � o�° � � � � � LL () o o e o 0 0 0 0 o e o 0 0 0 � e e o 0 0 F � � MOOOI`') <O O tD000 O � � � V' 7 N N � � aa (� � a W � J � � (j � a o in El d C1 . U � � N � � O N 0 O � U F } � U � O � � � N O O � � U d J � M O � � � � � } } V � U � �` �. O J V a ^ � O d Y N Y � � O O . �,..m. a 5 � F ("� � � d O � G N N ¢ N � N O a 01 U l40 U N U Z J - °o aa a mm � � y «� � � C ;.. (� V � y w O .3 � o o ,� in e o yar � a° e va oQ �, a"i � a m � � � o c� a ro � � ,� �n o � 'c �' � y � y � ya oo v �' � '� � o v LU oS y F c c � cv �n � U � � � e � a � ?� o mW > V a �' �' �' ao � � .. N � E �. � z � r� mmo - - � o Zo � U .. W � vi c � �j > � > U a aa 07rno .- Nco � � 22 F � � v, m `c-o � a�i a�i `9 c o �,� �, ,� o � ,� � rrn0000 — aaa � _ � P � � o °' d A /� h y W N N C � N N N N ��L �l �l Q � � F- C C lL U U � Q N N � UUO � � Nc � N �N M � N M�ln W a � 2 y d W � � � y Z a y �' W •= e E rn � > y Of � � N Z �0 Q {� � - 7 y � d � �' g --, �-.� w � z a v� v, v� �n �n �n �n �n �n �n �n �n v� Z J W W W W W W W W W W W W W � d } �- } } } } } } } } } } } � O U � r� o � u� . J J � � � n � M O � O = O�f � � N H � OQ V N N � a e,rss�s, �, f» e� fa u> O � J Z � O V e e e e e o � � a. O O M � � O N H � aa c7 � a i W Z N Q N • J d a a a � � .. . �p >. Q C w V y V � � y V � � � y y � E � a � o v� V � in � � u�s � � U V rn y � � o a �n > o d J J y p p ^ � y N p � � O w � � C O C () a a } TC� 2 a L � N V a � � m � � � M C N � � C r J � o ° 03o� ° ° mV ina`°ioo °�-� v � `oy �o � W aY Nor�i QoJ � � � � � � ro °�' yTa`�i � �N ° o ti F H a v > Ua ya v � W o y c �v H �o �� y � � �o u"s {y! V « o N IO N C '...�- � � W G � � � � fn � f0 N n y � a V Z l� 'C � p C > �j � N y y N 7 � N L U � 7 � N � `� � � N L y N N � v a� � v�i �0 � a� c a�i n �0 v m o o .� o r o' � v E � y � f � N f V m a� E N � y rn LL � � U LL Z LL m ¢ ¢ 5 a � aaa .=_ c7 ¢ o0o c � ¢ � o � c a� � > mmcn U �' s (� cJv� c� UU �n � � �nz � mv� � � � N (`') '- N M� � � N M V � N C7�N c0 � a e w ii a � � � d z e o a y w � ; a e d a � � = a W tVi 4 O d � � � � Q % Gyi m CCi . � ' Z � � Cr�l � Q d E � � d � G m V U � J ..__._..... ..._ -- � � � oaos � � "> : E " 4 $> h � q W � N � � � n a ^� d �Cm) O�y p Ny Cf YryI N C�p 8 N O 0(p S y � ay� Y � � O� OD 0 N t�I N O N O h � tp � O � C a' y W LL� � W N N O N N YI N 1(I O 1n Q 1A N O y O � � y �C 'F. � � � aEi q � $ � � � c m � N N ' e r ^ � r m � m I Yf � I N N Fj � A n ^ N � �B � N Y O O Q A J O !' � J � Q W '2 � �j g C 9 W Nq N Cry p EN .0 m N ' O N ' Q O� 1� N � N N � H d W X G. T� [V O) ry Y t�i ' tn b �O � C V1 V A q U ls = N � � dt � o E E d (pY N O� C d � E '- O� t�i n m (7 Ol p h � O W Y1 N O 4 � � O I ye� ai & vi � n vi ri d ri ri � oi o �m d t c a E o `� E ? E `� o s o ' n �n n m m n o �n v+ ' (j � w e � � $(ymN{pnn �p�imgQm �nrv�p � w� m gp � � c � m� t7 f0 N V m N CJ � N � 1`m'! N � f� (O N R Ol I�' Y O t0 O� p OI 10 N th �- 1` m 0 1� � � � N C � Ol Oi N t� Q 01 m �p O � 1� W N N �p �0 U N (7 01 O N 1+1 OI N N ry h m O1 O 3 {J � Q� W ♦a a n o r �n n a v m ry r — �i o o m C M t0 O) N � 1� N b Q N N M m �(p I C O Q N � ` � tD ` O f N Q � Q � cC0 � � � �a a�i z E C� � Or � 2c o E _ Q Z � O1 « l7 A N U 'n 'O � � l" I q W M Q � j y" L {L � N M p � p � O L p � a � � y ' A � W ° s � d O 0 7 d � N g m m g ua'i u00i ry g n in m g m � o a Y � rn � N W � � 7 � � � � NNf � ' � i7iNmiYi o � m � $ n q � � c � 3 � � � A tpD O�pp byp t0 t�p7 O 1ry� Qm 0 1� m Y C l0 N y a � rtl P m O O� N M P Y N N �G �'1 m � tm�l r ' LL y N � W Oa CI � GC lV � Ih b 10 Y 10 N c'1 O1Q� � ' j O Cy� O � C � � l W O C N N N � � � J � _ N = m � I H a° o E . � 9 O O f�0 O O N O O O O N S n I � � W ^ ♦ O 8 �p 8 8v� 888 8O C N Y � O iO O�i O O (O Op(/j Dp� C�(pp)� Oyp� r(y OOpJ1 M�p W N1� C m I�f/ N N m P � O O N Q l7 O l� N 1� N m O t � m � �n 1$ m N H n u> �O Q 0 cV M VJ Y) C 1� � N N � h r � N 7 W � Q O I Z 2 � � N O � LL � m W d O Z ] W � Z m c H c � � � m Q U � � � N O � � V O C � � 10 V � e U a w � w o a � � � m a �`�S � � � � 5 > > 5o o a 3 > A > � � g a � > U (J S w Y e s m a' � '° c m w aV � � � c�i w r a(J > 3 w E . y,.c d � m c � w n � �2 C Q O � W V W Q � O 7 Y Q m Up = L t � N C � � N e � � °0 � s w < q� � `° � a q� c �S .$ U � W c � � t� � g w � .� _ � J w-� � � � w t � 5 2 d L° u m ,L^ a �i wro °wop °wu~i � u�i � °w b A Aa 8 0 0 0 � > � av ; � C LL N LL � U J LL � N � = LL � U d v Q � I� f U Q W � _... __.__. I ... _. � ,- -� m 'a � � � � g � I $ � oas $ z "> a �' •- � Q � > � O� o o � `�a � 8 S G C o � � � O �tD O O T O P W m � O W N � 0 m m 0 0 m � m 0 m m c�D m 0 m O � b e0 � � � W N 10 (O 1A t0 t0 N t7 f0 Yf a 6 Q Q O O < < Y O Q O Q Y Q O O < Y Y O P ET� p 10 N n Y N �ryp� 1'1 p�p 01 � � � � � � � � � � � � � � � � e� � � � � � g QW t7 t'� t�+l N N N( lV � OI I N . � � " � � aa � �l a � a � a � aai � aaaaa � � aa � a � � a � $: r000J � � $ � $ $ RRRR � �.4RR `�, RR � RR ,.4 �4 �4. �4 �o 0 8 � m e°�, � m m m m m m m m `au ao m m m ao m `ar m m m m m m N� vi .d �c vi vi �v m �d d < 6 v v a a v a a o 6 6 v a o 6 6 a a a e � rogg � �oop � gg g mmem �piNu�yieNgvm�pogg � mmn � q'ona � O�1 g g 1� ^�p Ol 19 N � ��p � m (O N N 6t m � � m Oi � � V�I N � 1� N Cf g � mm O O cD 1p0 O�p+ Oyp a�pp0� OD Nq Nry N OI A 1p O �Ni d N N (o � �p OV m m � � O O P N t0 r : N � � N m n t"1 � 0 � I(f � N � 1N � IlI C Ip 17 tD b ? CY C> ^ � Of 1� V O O O N N t� p O N ('1 N � N t7 0 O O O N t+l In ' A N NO O O O 1� tV O O O A T Ip W (V hp Op N O t7 O O O r m m n .n np ; ' 8 m�p N O{p� � I�t � 0 N N N 1� Q m Q t+i Q O N � N O O � t�0 � t0 N N OO � !� N OI N O N V m 1� N lh 0 Ip N OI N 1� N I` N (p q O N � .� m m rn m m � � m a �i r m � �o m n n n � . ` maemma m ro � a r c� r u'"i r 1/1 � N � N � 1'1 1f1 O b 1+1 � y� 10 �e Z = d W d E � E y � a d > Oi 2 0 0 0p $p g $p e 8 g1� $ m m � �pi ry np v N g e n�p o $ $ � m m n � m np a ~ I�O C � � O O 8 8 O 8 O N f7 10 0 � 0 N N RI 0 O � N W � O N N � n N N 8 � Z � OS O8 8 p O O m�p 0 10 fV N t� OI {O Q � P N N {p � fpp W C , � a O N N N O � N OJ P N N � � t0 �N M C�') � m N C 1� y M n r m �o r a w m ry n u� h � C y fV N � N � �'! N O � (� G �O 0 � d p� � O � � ,°o_ Q �+ �+ I Q a o na �ibima�'imm ' m n W O � � � mCCa II � � �' d °' `Boo '8 `8 � o0 � w� a ��o 'o U U w �i 6!a � 00 � I'I tl . Z Z Z � 6 G x , � � � � ' I, >Q >Q � I N N f� f� N f� 41 4J N N f0 fr� 4r1 Nr Nr trq trq trq Nr Nr Nr Nr � � � O � � , w w 2 2 2 Z 2 2 2 � � Z 2 Z Z Z Z Z Z Z Z Z Z Z W W W W W W W W W W W W W W W W W W W W W W O O O Z � Z ' � � I�- H H 1�- � � � f � � g � f � I�- 1�- � � F�- � � H W W W Q O O �/1 f9 (�1p1 Ny>1 N N N N N tq Ny>� N N�>y Ny>1 4�>l1 N N Ny>� Nw> NW> Nw> Nw> Nw> NW> S S S W 2 2 � Q Q W Zy Z) Z) Z) Z) Z) 2> Z) Z) Z) Z> Z) Z> Z) ZT Z> 2> Z> Z) Z) Z) Z) J J J � J J' Y tq N O F F F F F F F F F F r F F F F r F r F F F F _ � � � � ` W W ` � J J J J J J J J J J J J J J J J J J J J J J � p � � Q 0 0 G H f C W W W W W W W W W W W W W W W W W W W W W W p w w w w w w w Z Z w � o � � � 0 0 � 0 O 0 � 0 O � O O O � � O O � LL LL LL LL LL LL � , J J � LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL IL IL LL LL ll IL O ' � I Z d Y J y a y- � m 7 � 5 0 8 � (p-V � _p ��pp �pp _pp� _ � W ry � � � Q O � � U m � � O � O O O O O O O O O O M b al O! � N 1� � OI O c? 5 a � � � � _ � � _ � � � _ S' S' S^' S' 0000d8 _ � � � y V � IN � � Q � � < p i J ~ � "� Y NU�i Oi � 1'qi � d� � N O n Z � ¢ � �y I f ' W m , � W m � m �i� � c4 � F p o U It n .%� n n M in i N LL � I p -- -�, � n, $ �a a ¢ � a f o fi g � � ra R �i �i $ �iR �iRF, RR $ � � � � � � � � � � `Qm' m "� mm � �d `9m"m�' m � `9m"Qm' m a � � �V m to m m m aD m m m m m m ry � Y Q f Q O P Y Q O O P P P P Q P O < P O O Q O d v Y O P O Q V Y P Q Q O � ai « D � � � � � � � � � � � � � .- � .- � � � � � � � � � � � .- � � � � .- � � � z �z � � � � ` � i � � a � � � 3 � � a � l333 � i � � � � � ii � 3 � � � � � aa � � � B� � � � � � � � � � � � � � � m � � � � � m � � � � � m � � � � mm � � � �� mmmmmmm y 6 a v a a a 6 a a a v v v f a a a a 6 6 v v v < v 6 6 v o o a 6 6 a o v § m `F� � �. g ��'cv� rv $' S'i � � n $ g � 88gg $ g8ga � ggg � ggggg � j � � � m o m n a � u� w o 0 o ry o 0 0 0 0 � o o � �m � o o � o 0 0 0 o n oe �, � os � � � � < ,�; � w m � rC fV N C �G � 1O O 'YJ W 1+l �(p N O t�O N N O N ID W n � O � O S O O O O S O Y O O O O � O O O O O � � O � l'1 N O O O N N N � m Q O O N O O O O O �- OO O (� N � O C ' G O O O O N � � 0 m � a� N N O 10 � � � � b O W C � d � Q � N O> j W tp�1 Ol N O t0 N N O N 10 01 n � O � O O O O O O O O Q O O O O � S O O O S � � 'rn C r � n ip �Yi � � M N < M w M � O O O N O O O O O �- G C t� N � O O t7 O G O O O N Z �O � � O Q t'! N O O N N 1n W Q W C , � 6 m n�'1 N N N N O fU � � !0 y �+f �o 0 a g '_ a O � d � J � C � W p Q wa � ro � � � � � � � � � � � � � � � � Wo � Q ; ; ; ; ; ; ; oo ' � eeQe � a � 22 QQQBB `nn �n � rnr` n a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 i 0 0 au q C m�q �m N N N N h N N N N N N N N N Nr N Nr N N W N cF0 N N tq 41 41 Nr Nr fr� W N t0 NF N N Z � Z Z � Z Z � Z Z Z � � Z Z � Z � � � � Z Z � � Z Z Z Z Z � � � Z Z � W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W W � � f � � � � � 3 3 � 3 3 � � � � � � � � � 1 f � � � � � � � � � � � � r r r F f Y^ 1^ f 1^ 1� 1� 1� F� Y� F� H H F� F� 1� F� 1� F� 1� H H H H N N N f� Vi N N N fA fA f� N fd fd fd fA N N N N N N V1 41 N f/1 41 4J N Iq fq 41 f9 N (� N � zzzzzzzz � � � � � � � � � � z � � � � z � z � z � z � � � � � - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - � z � � � � � � � � � z � � � � � � � � � zz � � � z � � � � � z � � � d J J J J J J �1 J J J J J J J J J J J J J J J J J J J J J J J J J J J J J : o00000000000 �"� �' �"� �' 0000 `� 000000000000 `� � LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL LL O C � J g �[ �Q ?� �+ � d � o 0 0 0 0 � � LS LS S � o 0 0 0 0 0 0 0 � � � � � o � o 0 o g' S � a �i in in in �i n n n n n n n n m m m `8i 8 0 � y � � � � � � � � � � � � � � � � � .- .- r .- .. � � � .- � � � � � � � � � � _ � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � a N W � C F � LL J ' � y W O U li � K •— --., m �'� � � � � � � � � o < � _ a '�` a ' � 3 � e a e 4. > � � aa � � � � o � � � �i �i �i �igie9i �i �i �i �i �i �ie6mla �I �Ti n $ $ mN �u �ilin �iy,l "� a €. �� ic m m m m m m m m m m m m �� Y Y d O 6 6 6 6 Y O f Y Y Y V IN MI N N IA N N 1N Yl N N 1C � E � � � � � � � � � � � � e� e� I O O 11� O O n N f�V N N ( 1 T � �� g g �` � � � � � � � � � � a 8 a � '� a a a a a a n �I � �� gi �i �i �i �i �i �i n �i � � � � � g N Si 8i m m �i n ry ' � m m m m m m m m m n N N f Y O O O O f O Q Y Q Q Q O IO N IA N N N h N N '0J O O O O � S � � � N 1�0 O O W W N 1�Y � f�Y N t0 O O O n N b ; O O O P 0 � O O O fD � O O O N � � O! � �O W W � W W f�p V N �� y p N � N 1`I tV � N � r �A fp P $ � N h O O �i O Oi Oi O� �D � I� ri � �� q N N N � � N A 1� � O S O P m � O � � N f�O O O N INO W W OO�p � O O O O O O N N ; O O O P o � O O O f� o O O O m b O V u�i N n T Omi � O � tl N O) 1 � O W 1p� 1p� Nq N h aoD� Nq t�l O m O � U � � N A O O OI Q O1 OI OI t0 n W h (O N N N �' N � 1� 1� � � W W d � i a d > ; � sss. < ma. s. ss � �pss � m a 8 � � 8 sssssss. s Z � C � ; O C O P � e- O C O t� O! O O O O�1 O O �I O O O O O O O O N m W to � � ' N � 8 � � � � � � 8 � � � � � � N M _ Ol' N M t7 � N � N N 1� 1� a � y O � d � W ° o Q wa o n: � � � � � � � � � ' � � � � � � � � � � �° � _ _ , , , , , a ' a', a a � m � � W a a o 0 0 0 0 0 0 0 o C C C C � � � � g � � � ; N B N I� N qq V �O N , 1� T ` A 1� �'l � N n � � j a �-q m n Q m � �i W IL 1N h O F � N m � W m Z Z Z 2 Z 2 Z Z Z � � Z � Z � > W W W W W W W W W W W W W W y y N N N fq � � � � � K R R K K K wNNNr~i� ~iv~i � uFiv~ivFitqv~i N d O u � OOOOOO � Y U H H 1- H H F U � � > > �' �' �' �' �' � � „ � „ 000000a „ z g, � Zz = Z � � z : w e ssssssy e w e � � � � � � � � � � � � � � Q o Q > a "> ` Z � � � � � � � � m J J J J J J J J J J J J J J � U Q W W W W W W p Q Q � W W W W w W W W W W W W W W e Z C z z z z z z � �J � 000 O O 00 � D 00000 W Q m W W W W W W O i (j q � LL LL LL IL LL LL LL LL LL LL LL LL LL-LL m C� V� U� U� C� U� U� Q J 0 o r o z o S S Z � LL E � N N O b � N 2 � J y g �+ W � o o � � o �i � � c1 <n a rn � m g � g 25 S ' �n e ng � q c ' ' ^ ' ' ' ' ' ' ' ^ �y o 0 0 25 ' a � � � W N W N N N N N N I�Y ; N � ~ a z � r u� Z a —y ' rc � 1 < W � � � � W � ��y} ��y} � 8002 � � d � _ � LL � wu7iil www 5 Q d W Q Cl ! N N N N N N NP � � '^ � W � p $ $ S83Sb � U u. i S' o U m M M m n oi t+i �J � i � ,— —. : �a � � � � � ss "s � "s � � 's � � � ��v � � � s � 's "s � oQ = � � � � a�i a �3 a � $ � � s � � � s � � o � � ��Qg � � oQ � $Q �Q � � �Q �Q � � o � e = c� r ry N m n M "d a a a a �n' "� vi $ 25 25 25 25 25 25 25 25 25 25 25 25I 8 a € S W $ �I o m e�' e� �i �n m w� � Y Yl M) 1p Yl 1fl N N N 1n 1n N N 1A N YI O O O O O O O O O C O O OO � Q; � 10( r W m 1n In � q � � O � � N I OI � t�! Oi N N O h In � n C�l.^ q � . a i � � a � � � 3a � i3 � a3 � i ii � a � i � i � � a �l � O p h o N a p p p In N p N N N N � N N N N � 1� N �� I� � 1� N (D N N N N l7 1� N Y N 1� 1� f0 N (O (D f0 (G !G !G (O N 3 � a �7i '�.4 � $ � '.°. m � r � 'r° oRm � 888888888888 S W N N O t0 OI N O h O (O � t7 C O! O �p � 1� � 1") h {p r b 1` �p p� ♦ � �p N m Y �p p f0 (O N h ' tp t7 N � N A h N 1� u� N N O) Cp1� �Y1 �I �'1 10 O NO 1� 0 N {Np N Nm Ip (p ED Nm t0 Qyi �O O f0 A ^1p � t�+l O IN! O �O ' O O�i p� O Y � M Yi tr0- ' � ^ s � 1p N � tp � 0 � � Y Q N e- � ' f7 {' � '� Y � � � � �i g ry ug g g �' m � g °' N n g $ g g g g � g 8 g $ $ g > $ `8 ' mg � mrv � g nmu' a�o �y �imv�im � n �i � '�irv �i �' � N a m ro a r a m 3 m �'p mg $' J� �o � m m c1 �o m m m fo n � � � m n $ io � � °�rm a � m n �7'i m r � � � � � �i � � � � � u°'i �i m � w U (A � O � N � � � 1D � � �- m V � W d aF I � a d °y' � � B, S, 8 � 8888. 88888888 $ 88. 88. 888. 8888. 8. 8 Z R c °-' > � � � � �p � ��p � � � 888 � � � � � �' � �' � � � mY � m � � ��D W � y � 6 � � N I O t�O fO � � m Q P � t�l N ID � ' � •N- � � N .�- Ip � m0 � � p� G � . f0 � O y 3 rn llA C C a La �'iFu' �' Pn' � �'i � � nPn' � �'im �' �'im8'im � mm �' " mmQ n $imm8i �'imm5i o a e � a � aa 'a 'aaa 'aaaaa �, aaaa < < aaaaaa w o = � 2 ecccccccc ccccccccccca � a a o 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 o d , °'° � � $ L° p r ri in <a3 (O,l � x e N f/! VJ N p N (/� N f � m Q Q � R R K K � K � K K K C � � K R C K K K R R K K K K r � V' � 7 � 7 7 J � 7 7 > > > > > 7 > > > 7 7 > > > 7 �' � fA N N N N UJ U1 N N t� fA N N N U1 fq N N fq � � ww � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � O O f� N N N N N (� N f/! f� y h f� N N N N N N fq fq V1 f� N � f, m W W W W W W W W W W W W m W W W W W W W W W W W W m aa w FFt- � r r r i- � � ri- � ti �- �- `- r r � rr '- r �- a z z a a a a a a a a a a ¢ a ` a ¢ a a a a a a a a a a E r r r r r � � r r r r r � r r � � � � � r r r � C � � a' y N (I) (/1 fq N N N N t/J f/l fq Y N f� fd 41 N fq fq t� N N N Vl O � � < � � � O O O O � 0 O p p i � � O O O � 0 � � O O O < � � wwwwwwwwww wwwwwwwwwwwwg = oa � � � � � � � � � � � g � � � � � � � � � � � � N W W A Z Z $ 2 2 2 2 2 Y Z Z Z W Z Z Z Z Z Z 2 Z Z Z Z Z 9 _ LL LL 9 > > > J � J � J J > > > � 7 � 7 � 7 J > > > > > > � o O � S a a � � Z �1 N i0 � O ¢ Q � � N � n O o � S o o Pa' o � �' �' $' � ~ c � c c �n �u r m m n S b o S3 a � � � � � � � � C � � � S � 8 � � $ 8 $ $ EB �, _ o o „ V U V' Q 7 O a ` o �° I Q m m n n w n n n �n � $ i � � � � m rc � k � �� u+ � mN i � mmm � � mmmm � � m � - � W 1") CI � (n N N N N fV N N N !V IV N N F O � U LL � m , 7 m m m m rn w m m` m m m m N rc ,— .-� a �� s � � ss � � ss � � � � � _ "� � � � � � � � � � c � � S 4 ` g . o o � � o S � $ b S a c 8 a � "� 2 a@ oa o yNrm ao � Q Iw '$ � ^ ' � x � o o �n � g g 7S � �m, $ � n m v� 7b � +. a ��.^ � W N N b h N YI Y Y f Yl Vf YI N Vf N N IA N N � � = � M�p 0 O yp P1 � ' {� p � Q m � p� IA Ymf M K T� N I�G m P � A t�l N VI N Q O �� O! f'I � � a � • a � � � � � � � � � � � � � � � s �� O N O+ �fp �tp O O 8 � � � 8 � N � N 1� 10 N {O {O N OI (O Q Y 1A 10 y� Q O O Q Q P Q N Q N IA 0 N Q IA Ip '�J W T N Q Q W On+ N N T f0 O t0 Q � O � m N � W N 1� Ol C �O O 01 1� I�Np 1� NO� m Opl O I�pV EC YA � 1n0, Npp� N � <�p N A m �q N n�p O npp� typ0� N O � c0 � � m q CI N W O � N � OI Oni O! O�l O! N Ol � A N m Q N N ' IV � � N N � ,9 S r 9 OI Q � m m 1� O�1 � N r N � O I(l m Q {np O O S ; C � C N t� el C Oi t,l N N (ryp M Np 8 + ap 1� N N Ip Q N Wy� POp�� P Ol O q N Of m O O ��p N A Ntp t7 �ro � � � � O 1 � i0 � O�i N r O O � N O � Ol Ol N OI N � O b A N Q N IV Uy � �(I 10 N � N � � N N � !! O! U C O Z C d ' W d E � E a o� Q d GI O� � 8gggg g mYi n $ ggg8gggg $ n > o� Z � c � > � � � g �py �qq ��p � � �QQ� �S8S �S �C � � � �m � ^ W � ' � 6 Omi W T N t+i '! O N N O O O O O� O t�] � Y m e�l � � N M ' M 1� O N ' N � N M � N � O! N 0 � d � � � W � p Q o g m a� m m m m m &i m �i wao c ~ � � � � � � �, � � � �, � � � � w o =� ccccc "c 'a 'a < � � < 'a � a a a o 0 0 0 0 $ � � � � o � � � � ! � I w� m ' � � � m c Qm O�I O QQQQ m Y ry � � W W W N N!� � � � � � � � W w � Z¢ ZQ ZQ 2Q iQ ¢ a < < '� y N > > y �W � W W � W �5 �5 �5 m ai F F f 3w� c� c� c� c� z � a a �d a � � � � � aaa � � x � 00000q� q� zz H H H f f U F J J J J J N !A N N t� _ = W W W W W O O O O W W W W w o � � d � � � � � � � � � m g � � � � � CI aa � i � = � = zzzz C L° a ¢ ¢ a a N N fn N UI b (J (f L JQ .Q! JQ JQ JQ J JQ JQ JQ CI b � Q C K K KLL1 KIyI � K R' KI�1 < Q O � � � � Q Z 2 j F H F F H � > > e � O � O O � 0 � ❑ e e R Z Z Z Z Z R O O • W W W W W W W W W • A � J � � � J g 2 S � LL LL LL LL LL LL LL LL LL � a O O � s � s s � a c H f y 2 � S C Z � 0 �p � y � N N N N N V �p ^p � Np 1pV Np Np � Np Np t'p1 mp ¢ � U m m m 0 m Q tO b V N N N N N N N N N F� N N H a y � � W U � 2 • K N f7 � � Y Q p �p �p ; � S Y � � -f I � Jay' X U! U' U' � O U = d� � a � � `� M � c� � ' W � f f f m LL� (7 Ti � u H , ? N N N N N N U� W 1�1 � l7 I��f l7 t7 � U � m m m m m 2 LL in �+f oi in n m m m n � ,-� -. r n � Q � a � � o � � 1O O O O � � N {I � f ai Ei � � N p � $ _ � i � a � � � �� N J Yi .�- � � I�G O � W �O 1� (p YI p�p� {yp N Yr N m m CI 1� b � 8 N � O OI N Nm Q � Q N 0 OI Ivl .�. m y < J N � {�0 O � � N {p q f� N 0 r � Y N t7 O n { m a � } ^ "' V � a W C y (� d m � � Q a� V � ; � Z � m � > � �i g d w a � a o y '° O ° a ' 'J O O � W O � a as O1 � � Q a a LC �i m m W a 2 a e � O p p 1 �p P Y b N N C m Wq ry � Q m (0 1� � � ur m N m Z ? � � U � S ti = U � S a w � �l a a a � � „ _ � � g a' o � � w 00 w ^ i0 = ^ vi x x 9 � Y a - � c S° `m a " i � C A H $ A V E ^q : m $ v �n �o U u U i- � o e � � N a F � C9 �Y j = o V U rc � � ; ; , � � ; , . , , , , $ : ; ; ; : ; ; o > ' ; ; , , � o � , , ; ; : ' ; m; � � .. , � ; ; ; , , , � O , � � � � � � a tl�l n T 9 � , Oi W ' ' R j � W � � �. > � � r � �� i Y � � q Y i . � i . i � � m � A b � q � i � . Q �� i k � � � . 0 !4 � . � . � .a � m �.� W a � , � � . + � � F , , , , , , , � 3 $ i $ Q , , . , �; � o' ec � � �� ' n� = po � . � . � , � � ,� . , , � m, � �F�x o i � F m , i ' , , , , � m a-a � F � ` � . , , , , � g ; ; ; ; ; ; � ge �t ;� � � ti,� � .;.;� � „ , , , LL , , � � m� m � ^$ � 'i � � � � , . � � ; ; ; ; ; m; ; " � a $ ° � : ; , , . . � W � � , . . � m� � -a¢>� ; , , , . . _, m � : ; ' ' $ i � � . � � i N m � � W i i i � � � �� N Z ; i � i � . i � � � � � � � � � � �h.,i. �.i., .0Y4'� � � � � � � � Z W v m W R :B R � _ '° V 1 m � � . � . � � � � ; � � � � � � > (YJ d�fYJ1NOd g � $ � � . . , � . � o sNomiw s o, n a a m r a a a 7 �ri ui vi vi 6 v e a vi LL g � (%)Q731A w �� W� a �N �, � �� " �` � , �gs�s �� . � ; ��W� ' �� ' �� W y � � ��M �� `"� �� 8 y � � � NYIHNHNKHHNH MN � �m �� .� {��'•..� :.. � � � Y � 8�8S�S�8o��"C �S3S g � `� � � � � � ��&�� m�o � ¢ ¢ _ �a � "��* W � � � ��I��o� �:� � � Q �a6 r vi�e<ui ni'�e��+. � � � � Z � ¢ � f i �b�'..;M �{ W Z m ^ ' � OQ � �+� a M HHHHIAHHHHHM HH � 6 � w °� o �� : '=,.t .,:�:�;, � (� 8"d9t�`�8�,�,.��C�.� B$6w � c', a �i ��Q��i+1��0 ��t� � LL W � ^ W � t� (��y�qp �yRp� Np {y^ Y $j l W I�W ID�Ol�f�1�001 �ON W � �LL 1Q � � b $ (� j f00^l�tDObN^�N17 � � F ` � 2! O LL Q � ro � � j ¢ Nlll ILL- m U g g w � y ,, S . .t�� N H N H H H H H N M N N N � � t � � � 2 � W ¢ � yQ � � � '!—. N � � U �1 ❑ u.�.:r.,Yu "' � U H 2 WWW NJ � ' V ' `� W � WF=�� Q � � .� ° ..` S a .�M.�.:.� O W a. �� 53gy3� ¢ Z 5a �'�5� �W��"O 3 �` � yy ,. . �¢ �"3�W��g't� �Q , 8 �� W¢�¢W3W°' 6 � J (� Fn �� w O� � ��Y�—UF< > jz y .. � � ¢ Q ¢< W� 1y J� C7 � .�. -, e fY � � - WQ�LL�~6~�� ppZQg2 . ' _ . ~�i��LL�~�2�LL g LL m a 2 I N N eD . .d O vi u e e a (%)Q13U �—_ —_ ...- .,..__,__ ._ REDEVELOPMENT AGENCY INVESTMENT ACTIVITY REPORT AUGUST 1999 EXECUTIVE SUMMARY - As of S/31/99,totai portfolio book value was approximately$149MM (with SLGS). This reflected a net decrease of ' $9.6MM from prior month due to debt service payments and land purchases. There was an unrealized portfolio net gain (market value-book value)of approximately$417M, based upon prevailing market interest rates. This was oniy a "paper" gain since there was no profit-taking. Significant changes in investment position, by security type, are discussed below: "Stata & Local Govt Series .Coupon." Palm Desert Financing Authoriry buys special interest-bearing U.S.Treasury notes with maturities of 2- 10 years to invest proceeds of advance refundings held in escrow(to comply with IRS yield and arbitrage rebate restrictions).Although unrated, considered "AAA". THIS ACCOUNT BALANCE D/D NOT CHANGE. "Fidelity Treasury Pool." RDA invests tax-exempt bond proceeds (construction, cost of issuance, and reserve monies)in Fidelity Institutional Money Market Fund: Treasury Portfolio-Class I." This$3.9MMM fund invests in U.S.Treasury bills and notes, and repurchase agreements for those securities. Weighted average maturity is 60 days or less. S&P credit qualiry rating of"AAAm"; Moody's of"Aaa:' TH/S ACCOUNT BALANCE DECREASED BYAPPROX/MATELY$458M DUE TO DEBT SERVICE PAYMENTS. "Local AQBn�y Investment Fund (LAIF1." RDA invests City's loan in $13MMM pool managed by State Treasurer's Office for 2,600 govemmental entities. LAIF has diversified portfolio(BAs, CP, Treasuries, agencies, corporates, repos, reverse repos, CDs)with weighted average maturity of 180-540 days. THIS ACCOUNT BALANCE DECREASED BY APPROX/MAtELY$6.7MM DUE TO W/THDRAWALS FOR DEBT SERVICE PAYMENTS AND LAND PURCHASES. "United States Treasury-Couoon:' RDA buys interest-bearing U.S. Treasury notes with maturities of 2- 10 years to invest tax-exempt bond proceeds. Although unrated, considered "AAA". TH/S ACCOUNT BALANCE DECREASED BY APPROXIMATELY$158M DUE PRIMARILY TO A MATUR/NG SECURITY. "State & Local Govt Series-Time." Palm Desert Financing Authority buys special noninterest-bearing U.S. Treasury certificates of indebtedness with maturities of 15 days- 1 year to invest proceeds of advance refundings held in escrow(to comply with IRS yieid and arbitrage rebate restrictions). Nonmarketable.Although unrated, considered"AAA." THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$372M DUE TO A MATUR/N6 SECURITY. •'United Statas Treasury-Discount," RDA buys noninterest-bearing zero coupon securities ("STRIPS")with maturities of 6 months-30 years to invest tax-exempt bond proceeds(construction monies). Purchased at discount;face value paid at maturity(difference is yield). Although unrated, considered "AAA". THIS ACCOUNT BALANCE D/D NOT CHANGE. •'HiahMark Swaen Accounts:' RDA sweeps excess checking balances into"HighMark 100% U.S.Treasury Money Market Fund." This$905MM fund invests only in U.S. Treasury bills and notes (no repos or reverse repos). Weighted average maturity is 90 days or less(per SEC regs). Although unrated, underlying securities considered"AAA." THIS ACCOUNT BALANC6 INCREASED BY APPROXIMATELY$35M DUE TO/NTEREST/NCOME. "Federal Ayes,y-Coupon." RDA buys U.S. govemment agency and instrumentality notes with maturities of 2- 10 years to invest advance refundings and tax-exempt construction funds. Agency debt guaranteed by U.S.Treasury; instrumentality debt is not(guarantee, instead, believed to be U.S. GovemmenYs"moral obligation"). Although unrated, considered "AAA" THIS ACCOUNT BALANCE INCREASED BY APPROX/MATELY$3M DUE TO AMORTIZAT/ON OF D/SCOUNTS. "Federal qency-DtscounY'. The City buys noninterest-bearing federal agency notes at a discount. THIS ACCOUNT BALANCE DECREASED BY APPROX/MATELY$2MM DUE TO A MATURING SECURITY. "Commercfal Paoer". The City buys high-grade, unsecured commercial paper at a discount,with maturities of 1 SO days or less,from Fortune 500 companies. THIS ACCOUNT BALANCE DID NOT CHANGE. 'Federal Aqency-Callahle". The City purchases federal agency securities that may be called prior to maturity, in order to obtain an additional premium for that risk, thereby increasing overall portfolio profitability. TH/S ACCOUNT BALANCE INCREASED BYAPPROX/MATELY$2M DUE TO AMORTIZATION OF DISCOUNTS. "Medium-Term Notes". The City buys noninterest-bearing corporate medium-term notes with maturities of five years or less,to invest revenues. THIS '-":OUNT BALANCE DECREASED BY AP^OX/MATELY$2M DUE TO AMORTIZATION OF PREMIUMS. -- � --, W V K Z a y �C:�Otcn m m v� m v� rn �n �n m m m �n �n . ZJ W��. W W W: WWW WWW WWWW W a �. . , r � r, � �- r � > r >- � rr �- • � O c� , � M ao .- N � � � � � � m oo m �c � � �ir� u� � LL7 � � a�ON � O TOO�i N .�N- . HH � 1� 0101 O) 01 � 1� � O O . O Q 7 � f M � N � N . N N � d Ei9 ffl b9 b9 fi9 fA fR fA (A H9(A d3 b9 fA i9 b9 tA fA � F � � W � � �4 ° �E �E ° � � � � � ° � � � IL („� o 0 3e o d� 3e e e 3� e e o 0 0 3�' 3� o 0 F � ar 00 �- f7 � � OOf 000 at V' � � � 00 � aa t7 7 Q W V Q I j N d Np C � �' () a O N y d � O �p O � C V rn N d o o w o L� U p a U � > � V �j o EL �+ ma10iw ° � � M p O � O U �p y } O y � } y a y � O a � N 1' f7 � � � TU d a () 0I � 'O O �" p C OQ N V �naa y f0 Q `� p _ O z -� '� c � aa 3° mgr y � ? o ° = o � e w o � o ... �n e e o m .� caa 'v_ � � o � Q � y a o � v � � � _ = m o � t o v a v � � W � � w c � e � V y > � g. L' L' �' �io v v � � Eo � � zo � V � °� o � ? o a�0i m m 'om a`�i a"i a10i �' ZZZ Z �'" � v y �� v '—� QMvh o � � � yrn0000 rn� a_°i � � � . Z �'� W � � � N A h A N W U U O ^ N N N N N �l �L �L Q � � F" C C m � Q Q C � N .—... [dmfn � N � N (�7 �'- N CJ � 4Y .- N P7 � W � a � � '� H y C � y O a F� N C Z � � y d a W � m � Q OI � N � � Q ~ L , ~ m � Y y '�pg� C � �L � m _ __ -.___.__.. .. - .— -, w c� z z � ww ww ww wwwww w w � — a � � > � � } � } rr � � � • � O t� � � y � � � � J J W O O Q r� ri .- � H °�' o � rn OU � rnc� o a a w fa�a » n 3 � � Z vo � � V a'o c�o '��i o �n ~ � W � � a � 7 a W � V O Z y N J � � N a C Y .. T Q �, `o � O C y p � C C N 0 C� � � �`Q � � QVJ N � C 7 W � � � p O 'Q " 7 �j p �j � � � � a . p m U C O. � � � s� � � �` � a O, m V p °D � C � C V C � V o ; �� o ° � � y � oo � � o o � o 0 W � . Q o; °�r° �'�" oQ �vJ � .}- p � N i. N � c pf o p � � . Q p �' .c p afa mmac $ '' ma r� y 0 � V � m a .�. o W o H p � F o � 'n � � � � � �{j d. N � c N O N � � o j o d 07 W m � � � ) _ � N o � �p G O . o � fn A NO oO C ? y N .� r � � l" �E'. f9 ..�. � � �r � T+ E � � N N d � N m .- m t0 O � ._ � V E � � � � � rnro O N � y rn LL � � ULL = '- LL a�'i a v, aa � c� c7 000 � � a � o � � cZi � > U y � UU (A UUUN � � fAZ � 1pfq � 5 �N M� � �Nc�� N<+7 �Y � t0 .- I a G W tL a .. � d 2 y a H W � C LL � f � o m � � � � d � � ° � , Z m � g Q � : � — �o ci � � � �,-, �, , � Qes � o �> � � �b O � e< a � N LLI' O1 a w � a � z E � � i u �� s � � 53 y N Yl C N 2� O O � O O O �N� Op O O Op �O♦p Oa�p � N N C 0 N lV N N fV m m � O � ~ e N 0�1 E � � � � w2 i Q � � € C� w o W C a aa N N m � W � d � G +' p, : � y y a � � c w J C � a a U LL C � U U N 0 � w � a � � � � N � � � � � d � rc � C� d a � � y i � w W ~QZ ~ a Z W J N y `o � � � W W r- g w � W W Z RB ¢ C7 LL 7 8�s C a O v � a ; � m � K LL U rn U m � C �p C � S � � � ��z1y a N p� m N �p � � � � � m U o c�i n w x�s ' A � � � � s so « aaaa � � � � o � o � � _ � __. . ___ _ ,--� ,-, oQss. z � o g; � r � : a° " � 'n �i n � o � a ,� a & E � y �F m � A N �� n � lif C'f N NO N Y1 YI N �� 8888888. 8 S �� : : �o � � � � g � � � � Q iV � CI � CI IV g Ob N � B � I r M= V M w ` E W � � g°' � � � E d a � :: s z d a 8 � mm � � � � W > y � � � a °' o� O c o� � J •� � a > > > > > v c� > >tQ/� > i 0 � � � � � K R N � . ! W � O N N O O = y R' � � � oo " � 1 Y � F f � � �3 f � d � � W � � Q � N oM wZ = wwoZ LL 77C7U' C77 � �° a ❑ g � � � �� f LL 3gUUUH d � � a O E � � �� g � LL K � n N � � C � N � t� � h8 � I C � � 17 N N N O � � � Q � y m w w � n � � S' gg < N ' � f.1 m n w� �i rn $ .�'o � � � � � � � g � aaeeaa v � aa �, � ma � o 0000000 . ; � ;_ __ ___ _ — � V ' v w g � � � 2 2 ' G � � w � d dW' :��.4 C 6 � � ^-� '� � C � m � � � � a. 5+ � ::3�+ N ^r� a � W .`d Q:��.o o :S w �on 0.l ,� . , ._ ... o n. :��a a. iu 'x z �'�.� a' \ o 0 o r'. o 0 0 0 0 0° .. a o +n <+t V eh. a� �c cn oo �n N �p � t--M .-{ 1'� .-!�*ai � � W � M 1� 00 � O � m m �� W y � � '�/� � , a �/1 {..�, � N y� M m cl' f'+ m U3 «w' vi M R N O� O M O � k, � 'sl^��ob M ch G�. r�r t* Qe W /� � Q r! �/1 ,r Q N ? ? r+ N N � O m � O v�i O a� ^ [7y' d �:�+ C Q C? C7 O `C Q --' ^-� O -- O �n O .d I�1 �i � �^ p � � U �° � � a � a ,~ � a � aQ � � � � o � � � �n O� M N �n �n �, oo N o0 7 vi O> >` �„[�� ' ; ,' 00 O O O O O � O N � ` .��t ti � v' �.w r a `_ '� . j� ♦wr I� �� // F�+ �.�, .� � ✓.1 � � �. W O y !�y 01 � l Y O G CY 'C N tY' N .-. 00 �n Oi O O M T .�e F-i Tt� a b �..a o �n �t�- rn oa co c� v c� r o v� o � , ea cy :m o q c+� cv, a �O,i A v, m ry .-. �o 0 00 0 >. � w t�l o� � ,a.c? cca000 --�' � o -: -. 000 r; o g �`I � � d' a rI--li � 3��+ y o �./ ,;. .w ;d, '. „ ,� ,� ,� � '. �, � � � � � � � � � � � � � � � � � ,.* � C :oa vti a+ m vi: v � rn v v o co 0 ae � �u� � aa vi .'+ t+a� v r m m � rn o eo o � nn :<+s o c c� -� a. en rn �n a� �-, o0 0 � o � {3 Ci:Cb O O G+ �CS C 'O' � o -+ o O O O � o � Q�' � y � Q o r�+ ' �' a> > �°� � � � � � � � � � {S O .b �O C t+i Cx N 4�. � o 0 0 0 0 o iO 4 G,7 O� Q v'i xt v4: C o 0 0 0 0 o V .CC� M'.Co N 40 1+ 49 '7 +L5'. O C o o O o 0 0 � . � q�p CS W�;.N N � � -+ ^+ �:: �" i O O O G G G +'�+ m o ^o : �' �o a ti E � � a' d � � � 00 � 01 N Q� N M � � ; � h � r � � b r �" -� � rn o 00 � o °' — o � � � � C � O �D �D N G O N �" o ' � �qp � ^ p U � .� 7 > � O 0.1 w - � ' ri ., c � � � � LL > m � A LL t m �.s �.� �, O W Q r� N c °' � U �� , � � � � � � • � °' qe F , w w C � -� .' � ,b . "� ,� a� `d�i �j, 77 �, m � a�i C O .O fin";. � ai 0.1 .C. +;+� � � ,� � ��: � i� ° o Q F W � b 3,.. � 9' • � m O N ..� .0 :W �,m Iw .G. � �.: y 7 C7 � K (� ep ¢ . rn � e m � :: ti :� '�" '^1"' � c"� ;fl a � ❑ 7 � .. � N � � yp � � d V � v � � � 6t'i. � Q p dy �' �G�p�: y �'4 '�' ,y ,y Q '�( y .� � � � � y O� ? t� 4�..�. i4. fa � y�+ �` i++.� 4 O v � iE O q F y 'z' °: a u,�•'t�+ �1 a w � va � a; W a. c7 a. a. U �-' � w v � ooro o � $ 0000S � g � o � oo � o 0 � O O N O C � O O O O O O � Q O G ^ O O Q1 d �1 ' d N � � p�i p� C . 0 � � � � � �« O (�O o f�0 (� �U p � �O 7 O � L � � v Z c5 on m LL LLa � � � V o 0 00 � � o o c Q W � `r � � m � S � m aa W O 0 0 0 � M O C C N a` a` a � � � o m t� � iti o �ti QI �1 N � � a0 O OD Q (p W N O N m � � Of O Oi � « aa � rpi a C � m Cy a a v � o � � p x oi oi oi oi oi W N O O N N y � d � � � � N N N � � � Q M m C m C � � � � I d w o(p 0 0 0 0 0 o(p O O o 0 0 0 0 0 � � o o � I QO m a00 � 0 � � a0 � t� 00 � � � 0 � �� 3 d � m o o m r� o N co o n u� o 7 'O Cl O l"1 � (V G f`') Q O �f �(1 Z � 9 � (V N OD r' N m (V O f0 O N o � N m m a v ' r. c� v� m ao� � m m � a y � � Oi O t'�! � N °� N N p v � y � '- � E y � 3 � v � Q a L y � c m = Em •� � m Q � � ° � N � a"i3 y U nQ `� � L t C � C N > W � l U � � Ol W C = � � . � j N � � � � N 3 E L a y " = (7 � U = a�S � v, � p � N � .S `mo y SU � c0 � o �'� E � U � v t U � a�i v � 3 c d � c aaci � ° > din ¢ S � cii E ¢ O .°� �, � � m o � y o � m ` c � w � c�i � a O �O � E `� a � ' � L o y Ha - :? � tlJ U y O � � „N � 7 N h C N H 0 N O. fp � � �.�.. � V O d C d y � N � t' C y N � � 'O N �U ` U! Ui N 0 C 2 7 '- d E d C F C a d C C C �- � G � N � .� y m C � O O N O O ^ � YI t� l� t� N L j H C (/� � � F- a¢ o. a` amm C � � HHH I- H 61 % C' W F- , 88888 8 8 � � 88 888888 � 8 � 88888888 8 �3 00000 0 0 oi � oo 00000a c0000000 o m � �1Q �� p � � � �h � N N N ��[l N �ri r N � $ 2 $ LL � � G O V a� W O � a o 6 ~ aa a U 8 m � � �, � � � � � N in ��np O�p Q S� � O W � a` .. 8 `e�'. �u'o. N 8 8 '�' � � N � � � � � W N NOp N Oi OD N O � a r lV N I� l�l <p r > 88888 8 88 „ , 888888 $ $ 888 , . , , , , , , , 8 W � �� o��s� � � � � � � � � � � " �� W F � m � � � (V O10 mNN 'C � 7 ' 2 v W d a k Y3 r� O u+ � W C � � �A � W � d `B � a � Y7 n W C 5 LL � ' � � � � � � W � 7 ►�- a�i o W � �'� �' � 2 L ,'9_ � r w o � W �t � .� � ��e � y� o � � � �N = �� W ?� � - {3 E � � � �� y� � � a �Q� � �N.�N �,- � � O� w t�d m � � �� 5 c � � W '� �U � Oc0 w c g 1O �, �' a a a ¢ � y � 's = � � � � � ~ ` � � a � 8goo ��{ = ww � o d fA j � � '� E L � p 'E � �� 0 � 7 �LLlalLSZKO � � � � � r � � _= in ¢ S a � aa` � a � � � � W X A � C W U � STATE OF CAGFORNIA -^ �—,. PHILIP ANGELIDES, Treasuier ' -- ----. ... OFFICE OF THE TREASUREk SACRAMENTO Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 June, 1999 3tatement Hcconnt Nnmber : 98-33-621 C1TY OF PALM DESERT Attn: CITY TREASURER � 73510 FRID WARING DRNE PALM DESERT CA 92260 , Accouat Summar�( Total Deposit : 0.00 Beginning Balance : 26,21 T,139.13 Total Withdrawal : 0.00 Ending Balance : 26,21T,139.13 ^^,iC ' ��--, � ��`�\ �i� � � _ _. � _- �:, r- -. �', �� - Y' _ (-.J (� y .' L 1 Page : 1 of 1 � .. � � �y ` r� q , . � w } � ' g��. x . � � t � ., i '. s �� ?�� x �i, y �.v ir y.*.zk��, s� �.h g� 3 i � J n� ;oa r r r e #� � , c' �'a )'�'�•y�,�'�� .�+�h�.41 m , ..."� s ;�,� 5 t1 ��. . . r t�sr'� 2�'"�?l �'n M 1 P ��"r 1 � w+ a � R r; � . .. . � ��r+f s � y {y � � 4 �, '� a ,. � A < �. � �� July 1�6, 1999 �� ' " "�' � _ .f , � . � . . . �a�r�� y 5 � . . . - � . - ,��r; . " . . � . . � . `r�.:;-� - . . . . ... :J�.��' i t . . ' � . . �. � ' � �r d� . � � � yn _ . - � •> r ,.'�fi., � . ' . . �. � �. ' � s�� - � . y��ps : � - . ' F k F�'�'A 1#Y ....gg '� � . .. ... . ' . . r,.,.y yk e h�+�� ry ,. � . . . � v � � . ^ � �n�` a - � � . . . . _ ' :.* . �4��"��., , ., . . TOALL LOCAL AGENCY INVESTMENT FUND ` PARTICIPANTS ' �� f � ��' , ,., �ti3r,b �� ,� b"Tr � � � . . . . . tr�g{,f 1 g,s�tu�S�` �� r �� . .. � � ws�� ,,� ` � � _ " t,�� tr q��'r�� er^' a ., ! �i � �� . , �r}�'�� :. �L �E �.,��;K` i` • . , � °r° $�vl�� '� � : � 4.�t � . . � .��. .. . . .� . .. �.. x�.�i ' ;� .<„Y, ,}� .�i :. ' s e . �� Attached is the 1999 LAIF Annual Upd VUe�dwould� �m., u� `, � � ,r ��..��- • appreciate your taking time from,your,busy schedule to validate ^� , the information: Please add any"missing information such as ,�,�'��} °� ,: � . your agencies fax number or e mail address.�, ��, �;�� W ,k4` . ` � � � � �� rYt •' i1 ��, � A, �� '-'�'YS � vi .� . . ' . f �`t� rae tiq � }�_ y .. � ` ' R h'�r�.i� �' r W Yvr�:�'d d J'�� -*�1+� P F i'4 x�'ettii�.x�" '�tt p F""u t\�'Jj ' ,P l e a s e ma ke any c hanges direc t ly f o t he ongina form, ' �r� x,�,� �� . . •� z��w,��^��.,�.n-. * including changes to your telephone number and area code r�„ �'}�t-(}�:4^,, � :..1 ..1� I �Fy c��' P {�t� � .'4 �� yR � �'tbA�`� G�i .�'.Wr p��1w�' . . ..9a �. . ..� � � �. .T' � ,��N l it.�: �` in � � �" . �� It is impe�ative that the original fonn is returned to the LAIF, � ';��. � �_ � � ,�.4 r.H. �� r a.�_�� with or without changes,`including the arig�nal signatures of ' ' two cur�ent/yauthorized persons ��`�>� �� :" , , � � d: �. .. '` - � �k�tt� $ � vrv�:'i i�V '}w�A^'�L� � . . � , i"''^M�i'.SF,�� q p,4- . � �� . . � � �� We have enclosed a self-addressed'envetopeforyour convenience and would appreciate receiving your forms no � later than August 31, 1999 -� _ ' �� ` �`'��`-�`�� . �' � � "�,.:. � v � ��, :,, , - ' . . . . . ,. - . ' ��. i�''�"} :.��t i7,.. . ��:4 a x�.�'A ' Should you have questions regarding the Annua� Update, ' ' please call LAIF at (916) 653-3001 � � , , ��.,��'.��, :; . .. � . . . �. ,+.9�, r. ,�,y . . . . . . . . � . . . . . . .�.1 . . . . ' Sti�i�Y�� . . . . . . . � . t . . T \` . . . . �• • STATE OF CALIFORNIA . . . . PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER SACRAMENTO LOCAL BGENCY IIWESTIV�NT FQND PO BOR 842809 SHCRAMENTO,CALIFOR1vIA 94208-0001 1999 ANNUAL INFORMATION UPDATE Please verify the follawing information and indicate any needed changes. Please return all original forms. � LBIF Hccouat Nnmbes: 98-33-623 Jul. T, 1999 C1TY OF PALM SPRINGS AT1N: CITY TREASURER P.O. BOB 2T43 '' PALM SPRiNGS CA 92263-2T43 Phone Number(sl (760) 323-8223 Ext: 0 Fax: (760) 322-8320 E Mail: SIITHORIZED PERSON{,S� Please indicate additions, deletions or changes Name Title DALLAS J. FLICEK ASSISTANT CITY MANAGER SHARON AIIdSWORTH DEPUTY CITY TREASURER THOMAS M. KANARR DIRECTOR OF FIIQANCE&TREASURER Page: 1 STATE OF CALIFORNIA .-- — PHILIP ANGELIDES, Treasurer OFPICE OF THE TREASURER SACRAMENTO � I.7[IF Hcconnt Nnmbe:: 88-33-623 BANHI�iG INFORMATION Please indicate additions, deletions or changes WM BUSINESS BANK WM BUS VN 5805 SEPULVEDA BOULEVARD ` VAN NUYS CA 91411 (800) 273-5967 Bank Acct Number: 54050017701 ; ABA Number: 123204550 Coxrespondent Bank: B/A BANK OF AMERICA Wire Instructions: SIGNATURES OF TWO PERSONS CIIRRENTLY AUTHORIZED ON LAIF HCCOIINT REQIIIItED: Authorized Signature Authorized Signature Print Name Print Name Title Title Page: 2 �_:��;; � # �( ��, . 3' 3 � r+'ar� •�'1'�s�* Y F w.�.y' '�, � , �v;.: ,�..�*�,r,in �x a.r n. , �. �i."�ir e'4 +�^' . .a, .�e, .r w`�.YF'�" �' s?+r" '` �a'�" `�t.G 1 �. ��,�� ,� ,, �� "�a ' 4A�ENGYINI/ES�MEN'��iNt��-��"��`�� "�,�.�� A�ryq �� t@�� s�h�<Ekn � �rrt� ��SUMMARY.OFACTI�IITY?y�`*�' a � ' �a_<rd � ��;A � .'�``'t'{`�id�� ,$A A�x�'msx�x+.^'raa..t ��h„ 5��,.�e$e yt'x� �Fz�yµ 'wS'3{^,�' �'K.�' ,�" � sh at��$ u+,... �l i 7 �'24�� a � � � ' T+m+, v'`: e v,u �r�� f51 x's ra� '�j'�T��7�+xt � ae _.� ��`*ro'i k `r ,.'�i.y'.9F 1 '�;i�+� ,a�,�`.� K�rmr , �r �sz «. �i�"' "`....e(.�'-5a1r�f' r .e��..�,.�s.,.:}}£ fi` ". ,. �' �`.` `*- � BEt31NNINQ�rEALANCE � �:DEPOSITSi`��' `':� WITHDRAW/lLS }; MONTH END HALANCE �,��.`��4`�A3v�m70$.h72.i��; �1,,�54,509.969.62 '� $1,941,429,35Q;26 ��St4.156,78�,691 �i ` 'tl S°TT °�w'x �r�e4 � � y � � t`'. �,�5,� � �<cx �. �.a i^$ y e �4 r�.fb�9� m'L �L� '' "�i:S � . � �' Y F � i £mw�>'i�'y b trn�.. naa;. 7-n^". '�" vY �' '�� '"�"��—�._^"�° POOLED�MQNEY"TNVESTMENT�/KCCOUNT, ' : •" � ;:, �� " `�" " SUMMARY OF INVESTMENT DA7A - � ��r i �� *rn ,� � � '� �. . � �- � �°�< '� A COMPARISON AF)UNE 1999 WITtf�.�U E t998 x g , :`�� ^ `.(uowrs tn_Thou�n�) � ' ' ' � � �� Ju�e,1999� < f : ;. � ',� �,� � , /�ryp �{�� +. yii c+8"� �Y e i� � � : �. b, a p} �V� �AaP �i� VFIi7�� ^'' ....v, 9*� ati:�ly .. ' ,.-. _ �� a "I;0.TI�t Avera�e Dafl� Pcrtfalio , - =` � °. < < " r s � ,�;ri.� �-r� , G � , .. � " ,�37,534,707 �: i = $33,843,34U ,+$3,691;367 ..� _•� �� 5.095 5 87'� :�76 .w , �, �� Averege LNe-Marrth End (in days) ` ` � � :, � 206 '` 212 � -� �` ''�_�L��RANGELIDES ' ,: '�'�F, � AL` DATES ,�, M ,-.APPOINI'S NEW 4 =` ;I.AIE ADVISOBY.BOARD , =' �"" � ` .��' Enclosed with your June 1999 � . ._: statement is �the LAIF Annual Update , including a self addressed envelope for Joe Shapiro has been appointed Your convenience. tofillthevacancyofMr.GeorgeJeffiies. The Annual Update contains Joe Shapiro is a graduate of the Harvard important account information including Law School. He was formally �e list of authorized individuals and Executive Vice President of the Walt bank information. In order to keep your Disney Company. He is presently a account current, it is important that you professor in the School of Business and verify all information and make changes Economics of California State direcdy to the original form. Please return University,Los Angeles. the original form to LAIF by August 31, 1999. . � �� aD O 1 . � r � 0 ++ � ? � Q + N N N � � � w � n � � m N � N M N � m C � A � � � V O x M N N N � �� . H /0 N 10 9y W ° � �: INH_ � OMD '7 p - 8 a '-, ` � � �, o t a � w N N r► � Q , 1A'!_ M ON1_ � M � � Z � e- N' t0 A Q � N M N M N N � � � r Q � � ^ � N � � ON! e� Q �' N l'�f M M N N N N � 0 O m C N a °° �n � ro . t n O N N N N ' a�.. . Zv � � c . .".. ��q �'p � Q ��(f O O wI � h V t+f N CO :� p► li � � C � ,r�' ,� N M N N N M � � Q II� O I� N O �fi (� � C � d = g N � � � ^ a a $. m .�+ � a � ? a N •� �; M M N N N N N � V � l0 W 3 ,,, Y O � � w °° < � oMi � � ^ � ,� � c 'Q .,, � M ' � c E LL - � � N N N N M M M � � � � �+ � ' ��p �p eN0 m �p � N O. V � C M Q N N Y P se � �„ � W Q � N � l0 C � � , � � �� N N N N N N M � � m C1 C 6 e ep � C W � ,� N Y � � A � M � ar IA w �p � �� ,�.�: � N a � � � d m � �� M N N N M M M , � y� C m � y 'S 10 i�0 t�0 t�0_ N A N !C W Y1 C a 1+1 r 10 Qj �/ W V .� A t< v► �► w w �► w � a � � O $ C A y C � � � Z Z la- � � O O Ol p a ,. y } m m 0 � W LL � IL G v + a � � W M W Q.' V ai Cf G1 di W p C9 Q a G O W O O O O � � � < m c� c� c� M a z z z z STATE OF CALIFORNiA � --�. PHILIP ANGELIDES, Tieasurer O FICE OF THE TREASURER SACRAMENTO � Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 June, 1999 Statement Hcconnt Nnmbe: : 65-33-015 PALM DESERT RIDEVELOPMENT AGENCY Attn: PAUL GIBSON, TREASURER ` T3-510 FRID WARING DRNE PALM DESERT CA 92260 t ACC011lit S1iMM814 Total Deposit : 0.00 Beginning Balance : 19,512,522.15 Total Withdrawai : 0.00 Ending Balance : 19,512,522.15 r� �� '-r\ r�;, ,; i{ � i .� �� . _� � c, - - c_: - < .-- _� s iv —. F-� -n i_J ' . r.^, -' JS C.'� - Page : 1 of 1 � : �. . �._.� �� , � . �' a� .I�-�'y J�1 'ybS��M..ry4f'. ' .. i J i i' � 1 � YT -y 'Kq�; �. . . � �'�. . 1 � . �d u:a• S ,a � ,�x o,��.�-��.� ' r r s'N"� :<, y`.� _ ��( y�..� � s� �.e � : r s. ti�:�� > � "" k � !ra.�� ,. .y r r"' '��rfs�^r.l^ . s l� July 16, 1999 , , , , , ,; � � , ' TO ALL LOCAL AGENCY INVESTMENT FUND PARTICIPANTS � ; � < � � � � r�, � ; „� . � , :� .. , �_ � ,. F � � , s � Fa Mx 3 a 1 � �" h} k � r�'� � c.S�b'- � ` � �r . q � e hX }y . > ... ' . t c ,; .. . � � . _, S . �. .. � .. L, � ��l� ,�.,1 �r . . , �... , . �. P . �, �- n . ` ; .,.. ... . . �.. . . r ` . � . y i ..: � , Attached is the 1999 LAIF Annual Update. We would , , < �: � ` . ' appreciate your taking time from your busy schedule to validate ;: , . " the information.� Please add any'missing information such as ` � your agencies fax number or e mail address "�' �'"�' ' > +� u Y 't2',F m�� F+��.s �§¢$ ,,�it'�i'�'. �a t�::aS r� .a ��a ^ �+( �'4tn� � ' d i � t � ��. ,- + �F4��h„�^#4�'��;Fe �.�r",�'•�i �wxs �l��i`�'�:�^fk�J. '�,'s"`,�^ Sv, iv1�t x..k;� k. +,t�,.kd ' . . � Please make any changes directJy to the or�ginal form, }°� �;'`� ' including chang�( ey�s to your tel'ey,, phone nu�mber and area code . . ��4 �6,"��r�".��'*#k'(�1F��!��'�d,�"�KK�;��1��Sty(Y��a,h.�� " � � It is imperative that the original form is returned to the LAIF, with or without changes; including the orig'inal signatures of two current/yauthorized persons 5 ' ' � � �,� t ,�� ' , ` ' . "� .aY�� r'' ��`'��*`��y�r��,,'¢��1ar4'y y sj �'Ri �\� p'�''✓ i k 3� . _ . ° ,n�+ a .a 4�k ��3b�hxS w,,b. x� '�4t '� 4 �_�, 1,�. , � :�'e �y'� � �. . .'"` ,. ` . ' We have enclosed a self-addressed envelope for your � ' ' convenience and would appreciate receiving yourforms no � later than August 31, 1999 " �`"' ' " w., � , ° t . , , ,k�J , <�' , , . Should you have q�uestions regarding the Annual Update, ' please call LAIF at (916) 653-3001. ` ' <, t . i. STATE OP CAL'IFORNIA- � �. PHILIP ANGELIDES, Tieasurer OFFICE OF THE TREASURER SACRAMENTO LOCHL AGENCY IIWESTMENT F[fND PO BO%942809 SBCRAMENTO,CHLIFORNIA 84208-0001 1999 ANNOAL INFORMATION IIPDATE Please verity the tollowing information and indicate any needed changes. Please return�,U original torms. � LEIF Hcconat Nnmber: 65-33-015 Jul. 7, 1999 PALM DESERT REDEVELOPMENT AGENCY AT1N: PAUL GIBSON,TREASURER T3-510 FRED WARING DRNE �• PALM DESERT CA 92280 Phoi►e Number(s) (760) 346-0611 Fax: E Mail: AUTHORIZED PERSON(Sl Please indicate additions, deletions or changes Name Title JOSE LULS ESPINOZA FINANCE OPERATIONS M1iNAGIIt PAUL S. GIBSON DIRECTOR OF FINANCE THpMAs]gFFREY INVESTMENT MANAGER Page: 1 STATE OF CAUFORNIA' ..- PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER SACRAMEN70 . I�SIF Accona4 Nnmber: 65-33-015 BANSIIHG INFORMATION Please indicate additions, deletions or changes LTI�TION BANK OF CALIFORNIA UBC 21 T 1800 HARRISON STREET#1450 ` p�D CA 94612-0000 (800) 798-6466 Ext: 0 Bank Acct Number: 2170000466 ; ABA Number: 122000496 Correspondent Bank: UBC LTNION BANK OF CALIFORNIA Wire Instructions: SIGNATURES OF TWO PERSONS CIIRRENTLY AIITHORIZED ON LAIF ACCOIINT REQIIIItED: Authorized Signature Authorized Signature Print Name Print Name Title Title Page: 2 � �o 0 i r \' �„ n i �e C � ;: � O � � w w w u < m � r. « � i. eo 0 � m N � � .,.:�.E. N N M � M C Ol A � � m a C W M M N O m i..�.. . H r p � � . 8 a . � � . � � � o t a � �► N N w '' A N N � N O�! e � M'� pf !+f Ol N �+f � � Z � � Qj tp' 1` . Q � � N N N N M N ' 1 � �O � i0 ^ CO N � Of Q � N � N N M N N N � � O m C r N °° � � m e [!� 0 N N N N ' �d.. . �r '� � � Z N N O Y�f O 41 N � . A � P! N C� s$ OI I.I. � C ' ' ° � .� r► w a w r► w Y' � a d g a � � � � ' ;e o, m � •`� � � ' ' c � 3 � r► w w w w w w a c�i > o W « �c _ .r+ � � ' n °°. v � � � r�. n � � � c J '' � o c � LL ; w r► w M N w w � � c � — � �..� l�.f O N N 'Q � � � am � � 41 Q �.... i � N pp G W C � � ��, N N N N N N M � W m � C � C r W .: F�.. � � � � A A � � � � � � n N a � m � m � �rr �' v ' � � m Q o w v► �n w w w w m � � m 'o '�° a�o a°�o m � N a � m � � � Q t0 tG 10 /0 h N +� W � V t _: � M e= �p R C A M W N N M M ' C A � C O Y.. a �p ,, � J � � �f O Z Z Fa- � 1— O O � p O 7 �' m m O vi Z 4. �' IL G a �.. f A 0 W N 1+1! Q' ~ t� V C f 4 1 C f C I o�c w o c� a a o o w o 0 0 0 F- � � a m c,� c� c� r► a z z z z ;t..'�6.. . h ' t �� P. 0iF'`�y':t''.. :.:��':�`� / I � a., .�-��,u�`.�r .� :s�t" +'�.0. �a � b. .._ , ,.. ,. ^r afi.eo,y s< E*:vr�"'.,, �,�' > `a.�'.. "`"'�F3* '�""'� . * �.��:�,�. �.� ��A�-��"1:OCA4 AGENCY INYES�MENT�.FUN�� _ � � , .� �- z�� .�� "�"'��'SUMMARY OF ACRVITY :��`� ,; � �'�� ,� : � ��,� ,�y�, .� ,'t � �,�� - ` ',7UNE 1999 `'��` �"' � �� -�.� �: � �,�� :� � � ��. -�, � �� ,� �� -- � � � � E , ��- ,� „ ^ �r � -'d� ��.y� . ei . « w "'e '. r d�. :«. .+', �q ..��i r�+ � ..P�; � r �"j(`nN _..r„ ,r i« Fs't : i�;'Ref M � A. =BEGINNING BALANCE . ...AEP081T5 ° r� YYITHdRAVYAL3 ��^ MONTH END�BALANCE' .,� . $14�$43,708;072.4T �� $1.154,5Q9,989 62 ��.��1,5d1,429.35�:2��:St4,156x78�,694;�i � hr = ' ✓ - ', - s.., a �., . s y% . y„. ; .� : : � �. �"54,:q*M1'" Z' .. ,.,5`+YEa,m a. �` �n'�'""8xsg, ''"�W+^ .�.e ��`+�: -h � ,� . . �. . ^ .v� w��.. ., .�;:r+5"r, r..b�,3: � �k s;z'u-r� ao-ct' ,», � , ,. . , . . ,�b , ti S � � "" " "� �� .POOLED MONEY�INVESTMENT�/�CCOUNT � ``,,.� , ,... �� ,,.:. , . - . �_ ' � ' t . s;... SUMMARY OF INVESTMENT DATA + � : ...�`. , ' :; t �..�, =:.'A COMPARISON OF�UNE 19'99`W1TH JU�E 199$ `t,� � �A`,�h¢ . ' � � • (Dollars ln Thanands) `, r ' t . r [y� �1 � �'�Fy �.�� /�� z � :> t�,� `June 19�7i r YV��1D�8 fi �.��r{Iqn�� "�r£ r ." + ir+�,�y.$+r i � Average Daily Poctfolb � � � r� ��': x � �- t R, � $37,534,TU7 $33.843,340 .+$3,899,367 Effective Yield 5.095 �4 .` 5.6i�1. `" �' _.576 ' :� }: Averege l.ife�Mornh End (in days) x ; w. '; �� .s..� - ` . . . . . � �� 206 . . ;l . . 212� �,.;� . =6 �� fiBEASUBERANGELIDES ' s`� _ : „' A�POINTS NEW LAIF AL DATES ' LAlFADYLS08Y:BOARD ; �� Enclosed with your June 1999 statement is the LAIF Annual Update � including a self addressed envelope for Joe Shapiro has been appointed Your convenience. tofillthevacancyofMr.GeorgeJefTiies. The Annual Update contains Joe Shapim is a graduate of the Harvard important account information including Law School. He was formally �e list of authorized individuals and Executive Vice President of the Walt bank information. In order to keep your Disney Company. He is presently a account current, it is important that you professor in the School of Business and verify all information and make changes Economics of California State au�ecdY to the original form. Please return University, Los Angeles. the original form to LAIF by August 31, 1999. STATE OF CALIFORNIA i^ � -�, !� PHILIP ANGELIDES, Tieasure� OFFICE OF THE TREASURER ' _ SACRAMENTO �r � � . . � i - � y , r - =� '; � �,, Local Agency Investment Fund - PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 july, 1999 Statement Accouat Number : 98-33-621 CITY OF PALM DESERT Attn: CITY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 Transactions Effective 'IYansaction Tran Confirm Authorized Date Date Type Number Caller Amount OT-13-1999 07-13-1999 RW 485051 THOMAS JEFFREY - 4,000,000.00 OT-15-1999 07-14-1999 QRD SYSTEM 328,845.24 07-16-1999 07-16-1999 RW 540990 THOMAS JEFFREY - 4,065,000.00 Account Summary Total Deposit : 328,845.24 Beginning Balance : 26,21T,139.13 Total Withdrawal : - 8,065,000.00 Ending Balance : 18,480,984.37 � � � �� ' I J�\.'� Page : 1 of 1 �� e, ;,i: � : ,,.� � , , , S.€+^ _.,7^[ ) f ; t�+. �.a ' ..a�'3�ay�`d4�XMUFtPYy%"'F�5'�µ1W�Hph��. t i.yi�t .. lL '*4 �a.:� ...:Lh�lt9 u�RF'4K u a� s, �,� � LOCAL AGENCY�nINVESTMENT FUND ""� `" ��°;�� SUMMARX:OF`ACTIVTiY ' �"�� ' a�� a ��,H� � �~� � '�aULY 1999� � ��:�� . �� ;��"r[,",,n*tdn - r . L ,. ,�.ru'R*,s °�i -� ..'�,�'��..;-'�' � ,ur vM 4 .. ...,�.,�� ^��`tAif =�� .R;A=�c'iS�J�x.�SI"' t'*�k �',- S. i . BEGINNING BALANCE � DEPOSITS �� WITHDRAWALS MONTH END BAtANCE a"'r ,kP � + y , �i ` . ' as� ' �' _�� 4�3Fa, .� $14,156,788,691 53 '� $1,315,198,0$613 $1,781,125,889.47 $13,691t8&0,88819 - �'z� �F r� � >�� tK� `� � ' ?�q •�"=sdt '* n•• `�' ;a - s � *' 'r � r�,��`�'�a�` d T=�"�'F`. . . ' . � �..,.t..Fry ,C.. . ` . " .,. �`'Y.m.A "�"�� u,... - wj�}f � � v�, r _iv POOLED MONE1f INVESTMENT ACCOUNT :,' � ' ;� :. SUMMARY OF INYESTMENT DATA = s�"�' " ° A COMPARISON OF 7ULY 1999 WITH ]ULY 1998' _ (Do11ars in Thousands) July 1999 July 1998 Change . , . �.. .. ... � ,.t.. .LiY.. :�. Average DailyPortfolio $34,345,259 $31,541,591 � +$2,g03,668 Effective Yield 5.178 5.652 -.474 Average Life-Month End (in days) 223 202 +2� !�9 LA/F CONfEREN[E �A�F �3F�'HEDULED TO NEGYDATE G¢n¢ral Hous¢k¢¢ping � Each participating agency should have received their 1999 Annual Update forms with Update your calendars! The their June 1999 statements. The information 1999 LAIF Conference has on the Annual Update contains important been rescheduled to October 15, 1999. account information that must be verified it The conference will be held at the correct or updated if necessary. Please be Sacramento Convention Center from thorough in completing the Annual Update forms 9:30 a.m. to 2:30 p.m. and return the original form to LAIF by August 31, 1999. A pre-conference and tour will be The LAIF continues to receive Audit 0� OCtObe� 14, 1999 ffOm 1 :00 p.m. to Confirmations for June 30, 1999. These 4:00 p.m. at the State Treasurer's Office. confirmations are completed on a first-come, The regist�ation p3CketS first-serve basis. To expedite your request, containing conference details will soon Please provide your LAIF account number on the audit confirmation. LAIF has returned all be mailed to each participating agency. audit requests to dace. it you nave not received your confirmation, please notify LAIF staff. ' ' � - 11 . ' • . • . . � STATE OF CALIFORNIA � "� PHILIP ANGEIIDES, Treasurer OFFICE OF T�i� Tt ASUF2ER � � SACRAMENTO �� p� Local Agency Inve�:tment Fund PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 July, 1999 Statement Aacount Number : 65-33-015 PALM DESERT REDEVELOPMENT AGIIVCY Attn: PAUL GIBSON, TREASURER 73-510 FKED WARING DRIVF PALM DESERT CA 92260 Transactlons Eftective Transaction Tr.an Confirm Authorized Date Date Type Number Caller Amount , 07-15-1999 07-14-1999 QRD SYSTEPJ! 219,133.44 i OY-16-1999 0?-16-1999 RW 885052 THOMI4S JEFFRE:Y - 5,558,000.00 Ac ount Susnmary Total Deposit : 219,133.44 Beginning Balance : 19,512,522.15 Total Withdrawal : - 5,558,000.00 Ending Balance : 14,173,655.59 1 � �� " � C� �� J ��-l� i Page : 1 of 1 . _. ! ' City of Palm Desert Parkview Office Complex August-99 August-99 # % Y'I'D YTD # % Budget Actual Vaziance Variance Bud et Actual Vaziance Vaziance Revenues Rental $ 62,500 $ 56,744 $ (6,056) 90.36% $ 125,600 $ 119,552 $ (8,048) 93.59% Dividends/Interest $ 1,250 $ 4,065 $ 2,815 325.19% $ 2,500 $ 7,804 $ 5,304 312.15% Total Revenues $ 64,050 $ 60,809 $ 3,241 94.94% $ 128,100 $ 125,356 $ 2,744 97.56% Expenses Professional-AccounHng&Auditing $ 5,800 $ 5,800 $ - 100.00% $ 11,600 $ 11,600 $ - 100.00% Professional-Management Fee $ 5,500 $ 8,281 $ (2,781) 150.57% $ ll,000 $ 14,261 $ (3,261) 129.65% Tenant Improvements $ 3,700 $ - $ 3,700 0.00% $ 7,400 $ 272 $ 7,125 3.67% Repairs&Maintenance Building $ 9,100 $ 5,293 $ 3,807 58.16% $ 18,200 $ 9,779 $ 8,421 53.73% Repairs&Maintenance-Landscapin $ 1,079 $ - $ 1,079 0.00% $ 2,758 $ - $ 2,155 0.00% Utllities-Water $ 250 $ 102 $ 14S 40.89% $ 500 $ 102 $ 398 20.45% Utilifies-Gas/Electric $ 5,500 $ 6,430 $ (930) 116.91% $ 11,000 $ 6,430 $ 4,570 58.46% Utilitles-Trash $ 450 $ 635 $ (185) 141.14% $ 900 $ 1,745 $ (845) 193.92% Telephone $ 150 $ 141 $ 9 94.29% $ 300 $ 277 $ 23 92.48% Insurance $ 520 $ - $ 520 0.00% � $ 1,040 $ - $ 1,040 0.00% Total Expenses $ 32,049 $ 26,683 $ 5,366 8326% $ 64,098 $ 44,467 $ 19,631 69.37% EquipmentReplacementReserve $ 9,186.00 $ 9,635.58 $ (453) 104.93`Yo $18,372.00 $ 19,277.16 $ (905) 104.93% �31VQ6I�2�0�-llIVPb� ,.. _ Parkview Office Complex Vacancy Rate Schedule by Suite August 1999 Suite Square No. Tenant Feet 73-710 Fred Waring Drive-Two (2) Story Building 100 Hanover 2,560 102 Bergren 1,360 103 Multiple Sclerosis 488 104 Arthritis Foundation 960 106 Vacant(space has no unprovements) 92S 108 Senator Kelly 785 112 Assemblyman Battin 1,406 114 Chamber of Commerce 1,478 118 U.S.Filter 1,250 119 City/CVAG Conference Room 1,380 120 Golf Dimensions 1,750 200 CVAG 4,292 200A Vacant(space is not available to lease) S41 201 U.S. District Court 604 203 Accounting Services 480 205 Coachella Valley Economic ParMership 700 208 Desert Springs Investments 960 210 Wilson,Pesota&Pichardo 3,040 211 Alzheimer's Association 937 217 Mcmillan 775 Irnest;Vacancy Report Parkview Office Complex Vacancy Rate Schedule by Suite August 1999 Suite Square No. Tenant Feet 220 CA.State Dept. of Agriculture 1,607 222 WMA Securities 2,981 Total square footage(2 story Building) 31,562 Vacancy Rate----1,769/31,562= 5.609'0 73-720 Fred Waring Drive-One Story Building 100 State of California-Water Resources 15,233 102 Vacant(Construction has begun-expected completion date is 9/30/99 4,396 TotalSquare Footage 19,629 Vacancy Rate---4,396/19,629=22.4% Overall Vacancy Rate for Both Buildings: Vacancy Rate--6,165/51,191= 12.04% Imest;Vacancy Report � x � a � x x s g �xuxxx: x � � x�� . � � o w g n m � o m .N �rvi��.x o ry N a a m°m�m m�m m o � m � i � _ ry _n�„ � � _ �H N 5 : T7 . _ _._ _ .. . . __ __. _._ . _._ _ _ g ._. . _ ._. . . . . . . .. . . .. "'.�x'+. . a W N� m '�i o'uf��a n m m 'm� ry e' m � �e n py � e � u�' H�i�_ Nom ui m a ��ry mo� a m �v�o m CF � 3 ae � x :� K ae � xxxxxaex � a' � � e a� � r� a` n a° '_ � N O m m �'1 � e .� �V � m � � � m � � � 0 1 . . . .. . .p_ _q ._ _p _.. . . . . . . . . . � GdCe O d4�O d� O N r i4$� S 8��N W� O�N..�O�'.Oo O N • N < O O ry O o n n n � n� n � � y�j N 4� �O IV n ��'1 b �N v� � � n N O YN N O a C � ] ��vry � � � e4i ry F m C T _. .�.b.'.N.N.$.$.m N.X.n.� $ . q,�,j m n � o rn o . . . . m$b�i�i��tTi� ��M rv�n� I�i m v O n �m n O a L 0 i ry fn � o n O� v � a m _ .v �^, C ` p ta � Oo w ^e � � m �v c :RK`V mma'a' N a` ae _ '"=f =` a c � f y O - � N N �.N�� N � ^ ^ � ry ry � � �' W � . . .�.m. , N.�. . N.g. � � � . �$.m.ry.m N .$. O Q} ' rv � .. e .� n � m ' nm — � F M 9 P > a ;¢ a m :� ma°XX;e ;eae Xaea':� :�;eX a° a a � " ' _ ^ m ' � '" � . � n � � � _ _ ` '" _ o � \ m I -. �N�'.�Ne.m�ry�n� ��xm«�$ �=�st�o� ^ mn�� ee _ _�n - _ - _ - _ � � m �� a � m; . .m:� _ $�m: s m��oe o � „� �R �� N� � M tV�I YI H tV V P� P V P IV ' v m .- �N �cO h n f � � .2 N {� � �� r = � � ��z� � � ; � � _ � � � 5 € �$�� : $ � a 3 4 e e v + w o Y ¢ � � C K Z �� a. €� 8'.E� tl y 4 b c = a ,o, � yn ! s Z k b �q w m � � � g � £ � �e t�i �� €� � ti ; b „ y � co �Ub tf � e L. s ¢ >' �� S � a LL��.�,��.�.�'3 ��8 '�$�3�ob a E S :u�'ui�c�i '�oW � a a�: . � 8 . � �� .� � $ $ 8 a S s � � : e e e e � � � � R � ' N ^ O N Q O O o y ; N 7 sE J � . -_ ._ _... ... _—. ___.__ ._' " __ "_-_' _._ __-'_._ _____ . . t'l l") N ('1 t7 t") tp9 N O YI q O O C�'] N f0 t0 N V V � Y ao ro vi ee oi wi n oi qi Y in 9 � o a" a o � aE ae. � � ^ N Sl n � O O 1n p N � � � T" � � _ __ _.. . _ ._._ _—. _ _ __ _ __ _. ..___ . . .. _ . �v�i. N . .t+�i � S S W V � O r r Q N N O t'� Yl G OI � e�- P � � � N �' � Y � m . _ _.. .. _ . _ .. . . . ..__ - - _ _-"_. . . . .. . . . .. . . .O. V .O CN'). ..f0 (G O N O I(1 o n � n ad o cti vi N R Y � � > Q � .. � � e e aQ a a�pe ae �° N 0 OJ .- � N N N �V d � F q N ^ O O � � � Y � � O H � v ' � c _ _ ____ _. . . . � . . . . .�. � .N. .m_ � � � �p .� � � C q O O M N t0 tD N �< IL � N W a0 �(f CD M Pl !� 01� 01 r Y T � N L ', C � � o e � o e a� a o N N [O 1� O � O N Q N U e $' > IL a m' °u Q.' d . . .o o .N. .�. . .o. g _ m . .�p, .o. m . . . A n V � N N O C'f 1"f � � ^ y O ^ t7 N1 N m Oj � 7 m . . . . . .� � .�. .n. . .m. m _ � _ _ .o. ' p O O t7 �C t0 O N �lf Q ? ! M1 CO O Ih �'1 N Y Y � Q � w Y n N � Y � � � m a�i W C > n m � W � m x � d V W M � O ;, � H � � S ' = � >m Y yN y > �{ � P > 61 C 8 CN m WY M C � � NY °a p � _ yKnl b LY � 6 0 � d . � � O � � O O v LL 0 ry = � � LL O O A { �y d LL H , 7 LL 1- V 6 O � � i Z g Citq of Palm Desert Desert Willow Budget Ve Actual For the month of July 1999 , � Budgeted Actual Budgeted Actual July 7uly S Percentage Yearto Yearta 5 Percentage Revenue 1999 1999 Variance Variaoce Date Date Variance Variance Course&Ground $ 76,499 $ 125,407 $ 48,908 163.93% $ 76,499 $ 125,407 $ 48,908 163.9396 Carts $ 8,125 $ 6,145 $ (1,980) 75.63% $ 8,125 $ 6,145 $ (1,980) 75.6396 GoffShop $ 13,550 $ 19,395 $ 5,845 143.14% $ 13,550 $ 19,395 $ 5,845 143.14R� Range $ 500 $ 255 $ (1A5) 51.0046 $ 500 $ 255 $ (?AS) 51.00% Food&Beverage $ 13,750 $ 17,483 $ 3,733 127.15% $ 13,750 $ 17,483 $ 3,733 12715% InterestIncome $ 1,500 $ 4,784 $ 3,284 318.93% $ 1,500 $ 4,784 $ 3,284 318.93% To 1 4 173 4 . 7 I13 7A 17 9 4 152.27 Payroil Proshop $ 6,41A $ 7,755 $ (1,331) 120.72% $ 6,424 $ 7,755 $ (1,331) 120.7296 Can $ 11,371 $ 13,538 $ (2,16'� 119.06� $ 11,371 $ 13,538 $ (2,167) 119.06% Course&Ground $ 96,297 $ 89,456 $ 6,841 9290% $ 96,297 $ 89,456 $ 6,841 92.90% Oolf Operadons $ 16,321 $ 20,580 $ (4.259) 126.10% $ 16,321 $ 20,580 $ (4,259) 1?b.10% Generai&Adminisvation $ 24,823 $ 25,645 $ (1,022) 104.12% $ 24,823 $ 25,845 $ p,022) 104.12% Pood&Bevecage $ 14,164 $ 10,357 $ 3,807 73.12h $ 14,164 $ 10,357 $ 3,807 73.1296 a roll 16 167 31 1 4 1 1 69 Other Ezpenditures Perimerer Landscaping $ 2,651 $ - $ z,651 0.009F $ 2.651 $ - $ 2,651 0.00% Proshop $ 800 $ 2,235 $ (1,435) 279.38% $ S00 $ 2,235 $ (1,435) 279.38% Proshop-COCS $ 7.453 $ 12.867 $ (5,414) 192.64% $ 7,453 $ 12,867 $ (5,414) 172.b4% Can $ 2�,614 $ 15,756 $ 5,858 72.90% $ 21,614 $ 15,756 $ 5,858 72.9096 Course&Ground-North Course $ 56,645 $ 50,657 $ 5,988 89.43% $ 56,645 $ 50,657 $ 5,958 89.43% Coucae&GroundSouthCoorse $ 50,400 $ 31,165 $ 19,239 61.84% $ SQ400 $ 31,165 $ 19.235 61.84% Course&Ground-DesenPallet-N $ 3,000 $ 104 $ 2,896 3.47% $ 3,000 $ 104 $ 2,896 3.47% Couree&GmuM-DeaertPalle[-S $ 2,500 $ 1,508 $ 992 60.32% $ 2,500 $ 1,508 $ 992 6032% dolPOpecarione $ 1,600 $ 264 $ 1,336 16.5046 $ 1,600 $ 264 $ 1,336 16.50% General&Administration $ 40.054 $ 47.161 $ (7,10'n 117J4% $ 40,054 $ 47,161 $ (7.107) 117J496 Range $ 250 $ 107 $ t43 42.80% $ 250 $ 107 $ 143 42.80% Pood&Beverage � $ 3,500 $ 3,689 $ p89) 105.40% $ 3,500 $ 3,689 $ (189) 105.40% Pood&BeverageCOGS $ 4,434 $ 8,028 $ (3,594) 181.06% $ 4,434 $ 8,028 $ (3,594) I81.06% ManagementFee $ 25,000 $ 25,000 $ - 100.00% $ 25,000 $ 25,000 $ - 100.00% Pinancmg/Leue $ 7,867 $ 6,475 $ 1,392 8291% $ 7,567 $ 6,475 $ t,392 82.31% 1 ther E e i r 227 7 2 16 7 .Ol 7 76 0 1 22 7 2 . 1 David Leadbetter Academy Leacniug Center Revenues $ 5,000 $ 6,402 $ 1,402 I28.04% $ 5,000 $ 6,402 $ 1,402 128.04% Reimbursemenrs ro David I.eadbettec $ (4,230) $ (5,442) $ (1,192) 128.05% $ (4,250) $ (5,442) $ (1,192) 128.05% Othec EapendiNres $ (1,450) $ (1,37'n $ 73 90..97% $ (1,450) $ p,37'n $ 73 94.97% Learnin¢Center Income(Loes) $ (700) $ (417) $ 283 59.57% $ (700) $ (417) $ 283 59.57% Opereling Income(Lacc) $ (283,944) $ (199,495) $ 54.449 7026% $ (283,944) $ (199,495) $ 84,449 70.26% HquipmentReserveReplacement 17,164 30,565 $ 13,401 178.08� 17,164 30,565 $ 13,401 178.08% N roe oss 1 1 7l 7 .4 2 7 76.40 Dw2000;Finencial Statement � ti M N � � � � N � � � o � � O � 3 p ^ � ti ti � � � S y Q � � � N � N a a Q M h �7 N � n • � A e a, E e ++ � o a, „ '� � � � � � � � � aa � 9 � �yy � � ro " � �yy � � � � � � '� h C� �p � � ¢ � 7 4 �p � C � U U U C7 �0.�' C7 p F U C7 � C7 � � � 4�' F 0 � � o '" b V c � 9 ? �4 m � � � Y1 C � � ^ � � O � � � A + � W b U �8 � 3 � � � o� � � � � � � � " � "d �u � � � � � � N � a � N m� � � a01 � o S �n 9 � � � � � � m �� N �� N � � N � � .�. � � Y a � � a" � � � € ' � � : �� d = � o &> � � �n m � > 'a :, � � �m � a � � N O a °� 8 V � � � 7 � � � � 7 K L r � o c $ am U Q � C � a � y m � o �Q oV O 6p U � Q � � ti � a " "' � : � �y � a� � '� "' ry > � � � ,.,K � � � a T � �. � 0. 0 . � � !� � .� ^ BF.- �B A 6F Q � .r > j N •• « � U y � Z h y — ," � S $ e d �! 9 [� Q � �. v # fi g � ��m U > c Z � � �� r�, ry 9� n � � � � ` p � �a'� i-°sa z '� o a z W ;; ' � 6 � � `�" `�^ � � P (((�� § o� � � � �� .� N az > Fd, > ee � a g � q oO � � � � �9 0 � #� v §� � � > � a > U � ^ � e � 09 P P � v � N x� p99 �K Om �Z �m E W �p V s ry O C P P �a �0.� P Q �9 m. t`��f 4� 3 m 'y Zi„ 2 9 rrc F'¢a �� '�< 's n �E � F F �+ � � � m � w � w � a n � z � t r e � � U � V � U ° U C s a a y � BQ y `S C � N W C' �'� g� � r n 7 b C v � � �a 5m' 0 � m �m,� �� ¢ O � � � �` "' � > v � c ^ > a„ � � � v eo� � om U tlt @4 O m $ o � [-� E 6 ~ N `00 0 se V ce � tp' n �^ $ a k � � `° M � � O$ �.� 11 � � � g� � &.�7 h � a e � � N � � � � � � � " �.c & o g � � ° n � � � ~ u Q 'U Y � 's " H tjy � S6 �ry1' v e � � O ' R.�a pq9 Ro a F` �9 U � o Z � �e $ 9 d � y � �� N � � O1� r f�l �(-C � OC2 N BZZ � Yo� F �6 m '� Z ce eJ � v ce Be q l� L�a�4 .rr S � � N �'� � � `� Q M m � � � n z' > � F� > ce W $ �. �`y � '��8 � � n `oS " �o ' .ri a.� Q@f � � � [- . K > > ^� > V a � �� _ � o � n s � v � � � � o'O O u � #1' N k�e �'� C.p 0O .i�.,��9'J C 061 YZ �Cl a $ g a o 'Q^ ry y �' o g v � '^ ° J� � `�� f� 3 p� o a� en F F a y�. � 6 U � a o � � � � ,� � = E ,s� F = F E W � K �° � � E�• � i. � > ; � � � .. V ti V .. V 3 g fi Desert Willow - Combiaed Analysis-July 1999 Resident 642 $ 20,798 $ 32.40 18.97% Non-Resident 2,400 $ 101,074 $ 42.11 70.90% Other 62 $ 695 $ 11.21 1.83% Complimentary 281 $ 2,350 $ 8.36 8.30% Desert Willow Totals 3,385 124,917 36.90 100.00% CV 9U�` ��'^ O 2 Y a+ � � b � � � � N � �(� � �m � ~ � � � yPS� "' O � � �,F O � r � � � ` w � � �y '" 3 � � � � � � p u � T W N � V , � n ~ � ?� F � y � Y � � m � � � .� � � Eo m n � N � � g � ,; � m � ` �� Q � 4 � � 0 0 � � � � � � �.� ssn F � � � � � Y i � � N � � � � � ° a � _ � � � �� o �1 �R G 1(� Y C�� °� � 'rw0 O � Z U � Y � � A � A � � � � � � g F � s �' B � �� # � � �m � � � m �� r � � _ � � � � FIRECLIFF COURSE-JULY 1999 Description No. Of Revenue Avg. Per Pct to Rounda PerPOS Round Total Reaident Rounds Resident Fee- Weekend-summer 163 $ 5,660 $ 34.72 5.33% Resident Fee-Weekday-Summer 265 $ 9,255 $ 34.92 8.66% Resident Twilight 116 $ 2,900 $ 25.00 3.79% Total Resident 544 17,815 32.75 17.78% Noa Resideat Summer Fee- Posted Replay 32 $ 800 $ 25.00 1.05% Summer Fee- Passbook-'l�vilight 14 $ 560 $ 40.00 0.46% Summer- Posted Weekend 467 $ 25,565 $ 54.74 15.27% Summer- Posted Weekday 292 $ 13,808 $ 47.29 9.55% Summer Fee- IROC MBR WKDY 3 $ 120 $ 40.00 0.10% Summer Fee-IROC Des. PR1'Y Wkdy 1 $ 48 $ 48.00 0.03% Summer Fee-Iroc Member WKND (1) $ (54) $ 54.00 -0.03% Summer Fee - P.S Golfer Weekend 6 $ 240 $ 40.00 0.20% Summer Fee-Wholesale Weekend 112 $ 4,480 $ 40.00 3.66% Spring Fee-Wholesale Weekday 45 $ 1,350 $ 30.00 1.47% Summer Fee- 'ltvilight 339 $ 13,212 $ 38.97 11.08% Spring Fee- P.S. Golfer Fee (wkdy) 26 $ 1,040 $ 40.00 0.85% Summer Passbook- WKDY 250 $ 10,000 $ 40.00 8.17% Summer Fee-Passbook WKND 323 $ 12,780 $ 39.57 10.56% Fee Special Event Variable 340 $ 11,133 $ 32.74 11.11% Total Non Resident Rounds 2,249 95,082 42.28 73.52% Other Rouads Junior Walking 33 $ 330.00 $ 10.00 1.08% TotalOther 33 330.00 10.00 1.08% Complimeatary VIP 118 $ - $ - 3.86% PGA Member 91 $ 1,250.00 $ 13.74 2.97% COD/PDHS - �$ - $ - 0.00% Donation 14 $ - $ - 0.46% Employee 8 $ - $ - 0.26% Employee Guest 2 $ - $ - 0.07% Total Complimeatary 233 1,250.00 5.36 7.62% Total Round (FireCliff) 3,059 114,477 $ 37.42 100.00% � � MOUNTAINVIEW COURSE-JULY 1999 Description No. Of Revenue Avg. Per Pct to Rouads PerPOS Round Total Resident Rounda Resident Fee- Weekend 57 $ 1,838 $ 32.25 17.48% Resident Fee-Weekday 12 $ 420 $ 35.00 3.68% Resident'l�vilight 29 $ 725 $ 25.00 8.90% Total Resident 98 2,983 30.44 30.06% Non Reaident Summer Fee- Posted Weekend 43 $ 1,995 $ 46.40 13.19% Summer Fee- Posted Weekday 16 $ 650 $ 40.63 4.91% Summer Fee- Wholesale Replay (6) $ (150) $ 25.00 -1.84% Summer Fee-Wholesale Weekend 6 $ 240 $ 40.00 1.84% Summer Fee-Wholesale Weekday S $ 190 $ 23.75 2.45°/o Summer Fee- ltvilight 37 $ 1,448 $ 39.14 11.35% Summer Fee- Passbook-T�vilight 2 $ 80 $ 40.00 0.61% Spring Fee- Passbook -WKND 19 $ 715 $ 37.63 5.83% Summer Fee- Passbook (WKDY � 7 $ 280 $ 40.00 2.15% Fee Special Event Variable 19 $ 544 $ 28.63 5.83% Total Non Resideat Rouads 151 5,992 39.68 46.32% Other Rounds Junior Walking 24 $ 240 $ 10.00 7.36% Charity Event 5 $ 125 $ 25.00 1.53% TotalOther 29 365 12.59 8.90% Complimentary VIP - $ - �$ - 0.00% PGAMember 47 $ 1,100 $ 23.40 14.42% COD/PDHS - $ - $ - 0.00% Donation - $ - $ - 0.00% Employee 1 $ - $ - 0.31% Employee Guest - $ - $ - 0.00% Total Complimentary 48 1,100 22.92 14.72% Total Round (Mountainview) 326 $ 10,440 $ 32.02 100% City of Palm Desert Desert Wi11ow Cash Reserve Aaalysis Cash Reserve Analysis One Month Re uired Reserve $ 500 000.00 Cash on Hand $ 1,478,097.45 Variance- Favorable Unfavorable $ 978,097.45 � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � � v N5 � Wo b � � M O n N h � d M �O g � P N h b r � V So O � � � 8 O V � W �.9 � V b m � P N N N � w V N < h O N ti N m O h O � N P h r W T W b N � O O N � b � r N N � N Q � g m 8 O � N N � � N � N M N � N ti ti � N ti ti � N V 7 � � Q O b b � � N O Q C b y � � O b � O O b N O a N W N N � b � y W N V V m � M � r N h n N O M N N b N � r h � h � t r � N b � r m r T N g h r N M r � � v ti V M w O N ti v � v m � � � H.0 R 7 Yr Yr tA tA H M di Vi Vi Vi tA H di M Vi tA K N N Yi Yi sY f/i Vf 69 Vf Vi di tA M M Vi W b � T � O V W V T r N N vPl N O W b Q r � t�+� �O m V� b N V�1 W ��+f t�l c�'� ' t��f A �N ti 00 N r N Yl�h 00 00 O� Vl 00 N� b try Y1 ti�G � O W r � � R �� v `� � � �P � Vi Vi E9 t9 Yi N. Y] Y]Yi h Vi Vi Yi f.9(.9 f9 f9 Vi V{H H E9 H M H W V]69 f9 f9 f9 1� Vl Y� Vl m � Q Yl a0 �D O Vl h .r Yl 1� �i m �O S m a0 vl �O �y N 1� ^ v1 v� Q p J ,0�+1 V1 oJ �O V'1 V1 W M b �O N 1� p ay 1� O� �O � y � < _ _N < 1� C f� N C N � N � N � l� d N �O O < O C 4 t�l S < h U � � � � P .ri � r ^ .�.� W �N N � b � ti � m � � � N � N b �� pQi � N a y v � � � � � � La 0 "' v��».n»wes vi vi».nnsvw ss »viwwwv.ww.n»•nr. w ww«�f w w w � BU � 6e 62 B' BV2 BF 6E 8O� BQ 9' Be B� B° � BQ B2 BQ � � � � 8F B� B2 6F 6F 6F BF � � EE 6F BE � BF �y Y L CD V � O. r �O O; vf N N N h < N N oo vt 1� 1� N O oo r O� N � $ AaNv+ 8 �en a8o 8 e 8 � v 8 00 0 L � p q p vi h w O� �O N O p O N �O p h N bV t� N $ .�. O 4 t+� S O �S �O < b n � C .-+ N V N V v1 < N ~ O N nf ti S O� N b O c� O� �j Q N �� N N � �+ N � N �+f N f+ N � � N � � � � �+ � N � � � � � ... ... � _ �p P v) � N vl m O � N 'p O W O O �O N O O�O �O vt v) � �O N O. O � � � g � �O � m �nmrvi � �v �vr �u � o� o� m �n �v w �n n V l� N 1� O �n N N �O N N � 1� 1� O t� M vl �D G � l�l l� P N O Y1 h Ni ^ 1� .v � �.Y V l�1 OJ O N � � 1� O (M1 O �O V>.vS O " 6 � fh fA f5 N]tq tfI q A M Vi M M tq W H M fq f9 tfI tq tq H1 H Y1 H•H f9 f5 yf y� h Yi Vi Vi �O � P � O V m V Si r N N v�i N O � b � r � a M m rn Vl b N vl � M t1 M �+f O P N � w N N N vl �O 1� w 01 vl w N V �O �+1 vl N �O t� OO W� t�i �+i b W d' .y 1� 1� .y .r 1� M .-r �O .-. v v '��. p q `�-' � o Q � � y w(A w fA Ni Vi V Vi Vi fA Vi N di di fA N N df di Ni Ni Nf df Ni Hi Vi Ni Vr(A(A Ni Ni di p V P�p N W �O p N 1� .y N �l�p �O < y�p 1� Q fry0 8 Vl �O �py N F 1� � V�pl p�p V p �P+1 N a � V r �Mh V v�l � M Vml ' N oj r V N `O O b O O V O V � tn�l V V h O u vl b Q� r C �+1 l� ti � O V� O 1� N Ni ti w 1� Cl O]Vl �O Vl �O Vl .r qq O O � y Q Ni h N N �O C N N v y �+1 N � � e � h z �,�,.q«s«9�, .A ..,..,«9 d.«��, � ..,..,a,.��«��«9 d,d,.A � «>..,.., .A «� «, e 9 u � " � u $ q 6 � d ;, `a ' _ ° °u o v� � � v e a o � a �' W � �' � c a � �' e � E � a � °' g :F �, � ��p g 'S �m � a mr�Ua 5 `E Ap, �o �p p d E '�i � O 9 � '�• � O �c7 Ci O � � � �L �q {i� S O 'a C a u a �-I O � � o d V. 'a 6 > � `.9 CJj U' 'a 6 v u c .3 y`x a U U n U m � v 3 ,y o m .°. ' ,y � dl m°' x V dl �' a! m m E �a�Q O fa °" °" K .9 :� °1 ° ° � � �af " � �° � g � ay! a � a° a° � g' � �dySdyS �'� '� 'o `v e i0 n � V V c7 r� � � e � A o' o °v b � `v � � � o' 'o v � b S—�. � o ;Q ry '� a� p � v wS F " V V c7 [7w F aaa V V C7C7r� w �� is, F .330 .1 O u� Z � � � a a � 0 g 0 � � � � � o � g � N rl � Q � S � �I O p � w m .y7 0 0 � � q .� g � � � � � � � � � � w � o � a o � �Qv q o , o s o � � o � � � � � � g � �'. C�°�+ o � o G� � � � � E m °°'° o c N � � v � � U o .+ m � � � � V � � v � � 0 C w a �y U Uk H' � � � � � � � oi � � � � � � � � r g � $j r 25 �"� � Ri �t �i w Gy � 5� o `1 N 25 . M LL � • �C M � � d C � � � �� x � w a � o a o p � �� y C pCf � � W p •� N � a� � 0 V r � � � � � f/1 v $Z zs 0 � c LL O0 m o = g m � ` di � � v � m .'�2� V' U a C . c 'E � w $ �E m � � LL � � y m � � � � � m m �`m a �� PalmDesert Recreatioa Facilities Corporation Income Statement Jul-99 Jul-99 N % Budget Actual Variance Variance Food & Beverage Revenues $13,750 $17,483 $3,733 127.15% Total Revenues $13,750 $17,483 $3,733 127.15% Salaries $14,164 $10,357 $3,807 73.12°k Cost of Goods Sold-F&B $4,434 $3,689 $745 83.20%a Food &Beverage Expense $3,500 $8,028 ($4,528) 229.37% Total Eacpenses $22,098 $22,074 $24 99.89% Net Income (Loss) ($8,348) ($4,591) Note: The above revenues and expenditures are also included in the Desert Willow analysis. Da2000;PDRFC Budget City of Palm Desert Internal Correspondence Date: 30 August 1999 Subject: Approval of Three New Primary Dealers From: Paul S. Gibson, Finance Director & City Treasurer ��/� To: Members of the Finance Committee Recommendations That Lehman Brothers, Chase Securities, and Zions Bank be approved as brokers. Background In the course of buying S57 million of securities during June-July 1999, the City Financ� staff observed that some of the most competitive pricing came from Banc ofAmerica ("BOA'J LLC, one of the City's two approved primary dealers. The rationale for adding BOA to the City's Approved Provider List had been that the City would benefit from the deeper and broader product inventory, and more aggressive pricing that a primary dealer would provide, due to its size and volume. When the City had held its annual qualification of new brokers in February 1999, it had hoped to add several primary dealers for those very reasons. Only BOA couid be added, however, because the City's other two prospects, Goldman Sachs and J.P. Morgan, declined to bid since they typically targeted public agencies with S1 billion + portfolios. Thus, the City fell significantly short of its goal. Accordingly, in August 1999, the City heid a second qualification round for new brokers, sending Requests for Information ("RFI") to primary dealers that the City had approached for business, or that had approached the City for business. The following is a complete list of the firms involved: fiim Name Contact Nistoiv Siatus 1 . Lehman Brathers, Inc. Solicited by City Submitted RFI 2. Chase Securities, Inc. Solicited by City Submitted RFI 3. Zions Bank Solicited by City Submitted RFI 4. Credit Suisse First Boston Solicited by City No Submission 5. Merrill Lynch & Company Approached City No Submission 6. Bear, Stearns & Company Approached City Refused to Sign City Questionnaire and Certification A�oroval of Three New Primary Dealers 30 August 1999 Page 2 of 2 The City solicited RFIs from four firms, after obtaining references on the firms and on their traders through a telephone survey of 20 prominent California public agencies, and through a review of NASD Regulation Public Disclosure Program complaint histories. The firms that submitted RFIs are discussed below: Lehman Brothers. The fifth-largest Wall Street investment bank with a global clientele, and one of the last two that is independently owned, Lehman Brothers is noted for the depth of its Treasury, and Agency inventories (S6 trillion in 1998 transactionsl. Lehman recently ranked second in Institutional Investor's poll of top fixed-income trading firms, for the fourth consecutive year. Lehman has a current SEC Rule 15c3-1 net capital position of approximately S1 .4 billion, and did not report any political contributions in its most recent MSRB Form G-37/G-38 filing. The trader who would serve the City is a senior vice president and a 15-year Lehman veteran who is based in San Francisco, and who has B.A. and M.B.A. degrees in business (no NASD complaint history and good references). Recommended for immediafe approva/. Chase Securities. Chase Securities, Inc. ("CSI") is a wholly-owned subsidiary of Chase Manhattan Corporation, the third-largest U.S. bank holding company, which acquired Manufacturers Hanover and Chemical Bank, and which operates in 180 nations over six continents. CSI is a "Section 20" non-bank subsidiary under the "Glass-Steagall Act", that engages in securities underwriting, dealing, and brokerage activities. It has a current SEC Rule 15c3-1 net capital position of approximately $1 .5 billion, and did not report any political contributions in its most recent MSRB Form G-37/G-38 filing. CSI has a start-up office in EI Segundo, California that is staffed with three fuil-time investment officers. CSI's California ciient list includes the City of Los Angeles; the Counties of Los Ange%s and Orange; and the California State Teache�s Retirement Fund (all 51 billion+ portfolios). Recommended for immediate approval. Zions Bank. Zions Bank Capital Markets, a primary dealer, is a wholly-owned bank subsidiary of Zions Bancorporation, the 67`" largest U.S. bank holding company. Zions has a branch office in Oakland, California, and focuses principally on trading Treasuries (5711 billion in 1998 transactions), and Agencies ($233 billion in 1998 transactions). Zions has a current net capital position of S1 billion, and did not report any political contributions in its most recent MSRB Form G-37/G-38 filing. Zions's California client list includes LAIF; the Cities of Los Ange%s, San Jose, and Redondo Beach; the Counties of Los Angeles, and Kern; and the San Diego County Water Authority. Recommended for immediate approva/. OFFICE OF THE TREASURER C/TY OF PALM DESERT BROKER-DEALER REQUEST FOR INFORMATION For Calendar Year 1999 ��•�� . • ... , �- •, . ., - • , . . -.. -, -- -, Paul S. Gibson Treasurer 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 CANDIDATE: ��6 y.� ��ir �v �c.�/ SECTION I: STATEMENT OF POSITION AND GENERAL REQUIREMENTS The City of Palm Desert, the Palm Desert Redevelopment Agency, and the Palm Desert Housing Authority (hereafter referred to collectively as the "City") are local governmental agencies that operate under the laws of the State of California. The City manages a portfolio with a combined book value of approximately $330 million, which includes United States Treasury and Agency obligations, corporate obligations, and selected money market instruments. The City has adopted a written "Statement of Investment Policy" which governs the operation of its investment program. A copy of this document is enclosed. The City annually reviews Requests for Information ("RFI") which are completed and submitted by broker-dealers that wish to qualify as authorized providers of financial services to the City. The City will notify all broker-dealer candidates, in writing, on whether their request for such status has been approved or denied. If a candidate's request is denied or if its RFI is rejected for being incomplete or late, then that candidate shall not be eligible to reapply for three years. Regional broker-dealers shall be eligib/e for consideration as authorized providers of financia!services to the City on/y if they: 1. Have a net capita/position in excess of S 100 million; 2. Have been in existence for more than five years; 3. Are currenily licensed as a broker-dealer by the State of Ca/ifornia; and 4. Are headquartered or have a branch office in California. The City shall not transact business with an authorized broker-dealer until all of the documentation that both parties require, has been executed and delivered. City of Pa/m Desert 1999 Broker-Dealer RFI Page 2 of 9 SECTION II: APPLICATION DEADLINE AND REQUIRED DOCUMENTS The City must receive the following documents from each broker-dealer candidate by no /ater than 4:30 p.m, on Friday, 20 August 1999: � A completed "Broker-Dealer Request for Information". � A copy of the firm's most recent Annual Report and Form 10-K. � A copy of the firm's Form BD — Uniform A lication for Broker-Dealer Registration. � A copy of the firm's most recent Form BD Status Report. � A copy of the Form U-4 — Uniform Application for Securities Industry Reqistration or Transfer for each employee with whom the City would be trading. � A copy of the most recent Form U-4 Status Report on each firm employee with whom the City would be trading. � A copy of the firm's most recent SEC Form X-17 A-5 filing or, in the case of a trading department within a commercial bank, its most recent Consolidated Reports of Condition and Income for A Bank With Domestic and Foreiqn Offices — FFIEC 031 filing. � A resume on each firm employee with whom the City would be trading. � A trading resolution from the firm. � A copy of the firm's wiring and delivery instructions. � Samples of research reports or market information that the firm regularly provides to public sector clients. � Samples of the firm's trade documentation. City of Pa/m Desert 1999 Broker-Dealer RFI Page 3 of 9 These documents may be delivered in person, by post, or by courier to: City of Palm Desert Attention: Thomas W. Jeffrey Investment Manager 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 lf a broker-dea/er candidate fai/s to submit the above-�eferenced documents by the specified deadline, then its RF/shall be deemed to have been automatically reiected by the City. That candidate shall not be e/iqib/e to reannl for three vears If you have any questions about this RFi, then please call Mr. Jeffrey at 760.346.0611 , extension 383. SECTION III: REQUEST FOR GENERAL INFORMATION FROM BROKER-DEALER CANDIDATE 1 . Firm Name: Zions Bank, Capital Markets 2. Contact Address: One South Main Street Suite 1340, Salt Lake City, UT 84111 3. Contact Personnel: Sales Representative Supervisinq Manaqer Name: Theodore M. Dutkanych Name: Scott Burnett Title: Institutional Investment Officer Title: Vice President Assistant Vice President TEL: (801)524-4819 TEL: (801)524-4819 TEL: (8001524-4819 TEL: (800)524-4819 City of Pa/m Dese�Y 1999 Broker-Dealer RFI Page 4 of 9 4. Please identify all personnel who would be_trading with or quoting securities prices to the City. # of Years in # of Years Name Title Institutional Sales with Firm Telephone Ted Dutkanych Asst. VP 17 8 (801)524-8960 Brad Mayeda Institutional 17 11 (8011524-4819 Investment Officer Mark McKinnon Institutional 5 5 (801 )524-4819 Investment Officer Please provide information on the history, details, and status or disposition of any disciplinary actions or complaints, arbitration, or litigation involving the above personnel. (There are none.) 5. Which of the personnel who are listed in Question 4 have read the City's "Statement of Investment Policy", as amended 10 June 1999? (All of them have read the Investment Policy.) 6. Please describe any formal program of supervision that your firm has established for the sales representative who is listed in Question 3. (All trades are supervised by the traders and sales managers. They are checked for 1 . suitability, 2. Excessive mark-up and 3. Excessive trading. 7. Please provide four references from California public sector clients that have established relationships with the sales representative who is listed in Question 3. Indicate: (a) name of governmental agency; (b) contact person; (c) address; (d) telephone number; and (e) length of relationship. Orange County, Treasurer-Tax Collector 12 Civic Center Plaza, Rm. G76 Contact: Judy Jacobson P.O. Box 4515 (714) 483-45508 Santa Anna, CA 92702 State of California, Treasurer 915 Capitol Mall, and Rm. 107 Contact: Dan Dowel Sacramento, CA 95814 (916) 653-3147 City of San Jose, Finance Department, Treasury Division Contact: Bonnie Kobayashi 801 N. First Street. Rm. 217 San Jose, CA 95110 Finance Agency, Controller-Treasurer Department County Government Center, East Wing, 6`h FI 70 West Hedding Street San Jose, CA 95110 City of Pa/m Desert - 1999 Broker-Dealer RFI Page 5 of 9 8. Is your firm: (check onel ❑ A Dealer ❑ A Broker � A Broker/Dealer 9. Ooes your firm regularly report to the Market Reports Division of the Federal Reserve Bank of New York as a "primary dealer"? (check one) � Yes ❑ No •*If yes, how long has your firm been a primary dealer? In August of 1993, Zions purchased Discount Corporation of New York, one of the original 16 primary deaiers in U.S. Government securities that had been in operation since 1918 10. Please answer the following questions only if your firm IS NOT a primary dealer. (ZIONS BANK IS A PRIMARY DEALER.) a. Does your firm have a net capital position in excess of 5100 million? (check one) m Yes ❑ No b. Has your firm been in existence for more than five years? (check onel � Yes ❑ No c. Is your firm currently licensed as a broker-dealer by the State of California? (check one/ � Yes ❑ No d. Is your firm headquartered or does it have a branch office in California? (check onel � Yes ❑ No City of Pa/m DeseK 1999 Broker-Dealer RFI Page 6 of 9 1 1 . Is your firm a member of the National Association of Securities Dealers? (check onel ❑ Yes � No if "no", why not? (Zions Bank is a national bank broker/dealer and is regulated by the OCC. Zions Investment Securities, Inc. (ZISI) a subsidiary of Zions Bank and not Capital Markets, maintains membership in the NASD. Their original NASD registration was effective July 3, 1986. All registrations for registered representatives of Zions Bank (i.e. Series 7,24,52,53,63, etc.) are held by ZISI). 12. Which of the following entities has the authority to oversee the operation of your firm, in terms of examinations, rules, and regulations? (check appropiiate choicesl � FDIC � SEC ❑ NYSE (� Comptroller of Currency � Federal Reserve System ❑ Other (example: state regulatory agency) (specifyl Multistate firms please note: It is not necessary to include regulatory agencies that do not have jurisdiction over the your firm's activities in California. 13. Is your firm owned by a holding company? (check onel � Yes ❑ No If "yes", what is the holding company's name and It's net capitalization? (Owned by Zions Bancorp, banks do not have capitalation requirements.) 14. Has your firm consistently complied with the Federal Reserve Bank's capital adequacy guidelines? (check onel � Yes ❑ No if "no", please explain. 15. What was your firm's total volume in United States Treasury and Agency securities trading last year? Firm-Wide: Average Agency 5233,323,402,322 # ofi Transactions: � Average Treasury 5711 ,441 ,115,653 Avg. Agency 24,898 Avg. Treasury 168,409 Your Office: Same as Firm-Wide # of Transactions: Same As Firm-Wide City of Pa/m Deseii 1999 Broker-Dealer RFI Page 7 of 9 16. Which of the following instruments are regularly offered by your trading desk? (check appropriate choicesl � T-Bills (�f Banker's Acceptances (Domestic) � T-Notes � Banker's Acceptances (Foreign► � T-Strips � Certificates of Deposit � Repurchase Agreements � Commercial Paper � Reverse Repo Agreements � Corporate Medium-Term Notes � Agencies (specify) � Money Market Mutual Funds 17. Which of the financial instruments that are described in Question 16 does your firm specialize in marketing? (discount notes, commerciai paper, repo, agency bullets, callable structures, treasures and money market funds. 18. Please describe the capital line and trading limits of the branch office of your firm that would be trading with the City. Total Capital as of 12/31/98 was 51 ,358,812,000. (See page 66 of the annual reportl. Trading limits are approved by the Board of Directors annually. S1 Billion may be held in inventory. 19. Is your firm a member of the Securities Investor Protection Corporation ("SIPC")? (check onel As a bank dealer registered under Section 15CIa1(1 )�B) of the Securities and Exchange Act of 1934, Zions is not eligible for SIPC membership. Zions does, however, maintain errors and omissions coverage through St. Paul Fire & Marine Insurance Co. with a limit of 520 million, and excess liability coverage with Travelers Indemnity Co. of Illinois with limit of S40 million. (6/99) In addition, the Bank's capital serves as protection against loss. ❑ Yes � No ,- - City of Pa/m Desert 1999 Broker-Dealer RFI Page 8 of 9 20. If "no" to Question 19, does your firm participate in any program that provides securities insurance coverage for a public sector client which buys the financial instruments that are listed in Question 16, on a delivery-versus- payment ("DVP") basis? (check onel ❑ Yes � No If "yes", please explains. 21 . If "no" to Question 20, please explain why your firm does not carry any securities insurance coverage for its customers. (See reply to question 19.) 22. Please indicate a percentage breakdown ot your firm's client base by portfolio size. (30% 5 billion or greater, 35% 5 billion to 1 billion, 35% billion or less.) 23. How many and what percentage of your securities transactions failed last month? Last year? **Approximately 2%. (The majority are fails to deliver to us) 24. What precautions does your firm take to protect the interests of the public when dealing with public sector clients as investors? (Strong management and supervision of all trades done with public sector clients, with the main focus on suitability.) 25. What trade documentation (e.g., transaction information, confirmations, statements, etc.) would your firm provide to the City? Daily confirmations for each transaction. If the client utilizes our safekeeping capabilities, a monthly statement will be provided. 26. What portfolio information, if any, does your firm request from its public sector clients? (In addition to a monthly copy of the client's portfolio holding, an update to investment strategies is suggested.) 27. What makes your firm the best broker/dealer for the City? What advantage would the City gain by trading with your firm? (Long term relationships with over 20 different municipalities and with the state of California along with California bank and trust, being the tive largest banks in California. With our long-term relationship, we know the needs of the city, the county and the state.l City of Pa/m Desert 1999 Broker-Dealer RFI Page 9 of 9 SECTION IV: REQUEST FOR BROKER-DEALER CANDIDATE DISCLOSURE 28. Have any of your firm's public sector clients sustained a loss on a securities transaction within the last five years, arising from a misunderstanding or misrepresentation of the risk characteristics of a financial instrument that was recommended by and purchased through your firm? (check onel ❑ Yes � No If "yes", please describes each matter briefly. 29. Have any of your firm's public sector clients claimed, in writing, within the last five years, that your firm was responsible for any investment losses? (check onel ❑ Yes � No If "yes", please describes each matter briefly. 30. Has your firm been subject to any litiqation, arbitration, or requlatory proceedings, either pending, adjudicated, or settled, within the last five years, that involved allegations of improper, fraudulent, disreputable or unfair activities related to the sale of securities to or the purchase of securities from institutional clients? (check onel ❑ Yes � No If "yes", please describes each matter briefly. 31 . Has your firm been subject to a regulatory, state, or federal agency investipation, within the last five years, for alleged improper, fraudulent, disreputable, or unfair activities related to the purchase or sale of securities? (check onel ❑ Yes � No If "yes", please describes each matter briefly. City of Pa/m Desert 1999 Broker-Dealer RFI Page 10 of 9 SECTION V: CERTIFICATION I hereby certify that I have read and that I understand the investment policies and objectives of the City of Palm Desert, the Palm Desert Redevelopment Agency, and the Palm Desert Housing Authority (hereafter referred to collectively as the "City"1, as represented in the City's "Statement of Investment Policy", as amended 10 June 1999. My firm will ensure that ali affected sales personnel will be routinely informed of the City's investment objectives, horizon, outlook, strategies, and risk constraints, as the City provides such information. My firm will notify the City Treasurer immediately, by telephone, and, in writing, in the event of a material adverse change in its financial condition, or of any violation of Municipal Securities Rulemaking Board Rule G-37. My firm pledges to exercise due diligence in informing the City Treasurer of all foreseeable risks associated with any financial transactions that my firm undertakes with the City. I attest to the accuracy ot my firm's response to the City's Request for Information. NOTE: Completion of this Requesi For /nformation is only part of the City of Palm DeserYs review process, and DOES NOT guarantee that the candidate will be authorized to provide financial se�vices to the City. The sales representative who is listed in Question 3 must sign this section. Firm: Zions Capital Markets Signed: �/ // , ��j,� �rr— Title: Assistant Vice Presi nt Date: August 18, 1999 This section must be countersigned by the Managing Director or by the most senior person in charge of the government securities operations section. Firm: Z� s Capit J Markets Signed: ,l,u.��,1�'�l��i/ Title: Sales Manager Date: August 18, 1999 � 1 OFFICE OF THE TREASURER CITY OF PALM DESERT BROKER-DEALER REQUEST FOR INFORMATION For Calendar Year 1999 /�'1•'� � .' . • •., '• , . . Paul S. Gibson Treasurer 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 CANDIDATE: LEHMAN BROTHERS INC. SECTION I: STATEMENT OF POSITION AND GENERAL RE�UIREMENTS City of Pa/m Desert 1999 Broker-Dealer RFI Page 2 of 13 The City of Palm Desert, the Palm Desert Redevelopment Agency, and the Palm Desert Housing Authority (hereafter referred to collectively as the "City') are local governmental agencies that operate under the laws of the State of California. The City manages a portfolio with a combined book value of approximately $330 million, which includes United States Treasury and Agency obligations, corporate obligations, and selected money market instruments. The Ciry has adopted a written "Statement of Investment Policy" which govems the operation of its investment program. A copy of this document is enclosed. The City annually reviews Requests for Information ("RFI") which are completed and submitted by broker-dealers that wish to qualify as authorized providers of financial services to the City. The City will notify all broker-dealer candidates, in writing, on whether their request for such status has been approved or denied. If a candidate's request is denied or if its RFI is rejected for being incomplete or late, then that candidate shall not be eligible to reapply for three years. Regional broker-dealers shall be eligib/e for consideration as authorized providers of financial services to the City onlv if they: 1. Have a net capital position in excess of$100 million; 2. Have been in existence formore than five years; 3. Are current/y licensed as a broker-dea/er by the State of Califomia; and 4. Are headquartered or have a branch office in Califomia. The City shall not transact business with an authorized broker-dealer until all of the documentation that both parties require, has been executed and delivered. SECTION II: APPLICATION DEADLINE AND REQUIRED DOCUMENTS The City must receive the following documents from each broker-dealer candidate by no /ater than 4:30 p.m, on Friday, 20 August 1999: � A completed "Broker-Dealer Request For Information". � A copy of the firm's most recent Annual Report and Form 10-K. � A copy of the firm's Form BD — Uniform A�alication for Broker-Dealer Reaistration. City of Palm Desert 1999 Broker-Dealer RFI Page 3 of 13 � A copy of the firm's most recent Form BD Status Re�ort. � A copy of the Form U-4 — Uniform A�olication for Securities Industry ReQistration or Transfer for each employee with whom the Ciry would be trading. � A copy of the most recent Forrn U-4 Status Re�ort on each firm employee with whom the City would be trading. � A copy of the firrn's most recent SEC Forrn X-17 A-5 filing or, in the case of a trading department within a commercial bank, its most recent Consolidated Reports of Condition and Income for A Bank With Domestic and Foreiqn Offices — FFIEC 031 filing. � A resume on each firm employee with whom the City would be trading. � A trading resolution from the firm. � A copy of the firm's wiring and delivery instructions. � Samples of research reports or market information that the firm regularly provides to public sector clients. � Samples of the firm's trade documentation. These documents may be delivered in person, by post, or by courier to: City of Palm Desert Attention: Thomas W. Jeffrey Investment Manager 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 If a broker-dealer candidate fails to submit the above-referenced documents by the specified deadline. then its RFI shall be deemed to have been automaticallv rejected by the Citv. That cand�date shall not be eligib/e to reaoplv for three years If you have any questions about this RFI, then please call Mr. Jeffrey at 760.346.0611, extension 383. SECTION III: REQUEST FOR GENERAL INFORMATION FROM BROKER- DEALER CANDIDATE 1. Firm Name: LEHMAN BROTHERS INC. City of Palm Desert 1999 Broker-Dealer RFI Page 4 of 13 2. Contact Address: 555 California Street,30`�floor San Francisco, CA 94104 3. Contact Personnel: JAMES C. TLJLL Sales Representative Suoervisinq Manager Name: JAMES C. TULL Name: WILLIAM WELSH III Title: Senior Vice President Title: Senior Vice President TEL: (415) 263-4499 TEL: (415) 263-3333 TEL: (800) 227-3325 TEL: (800) 227-3325 4. Please identify all personnel who would be trading with or quoting securities prices to the City. # of Years in # of Years Name Title Institutional Sales with Firm Teleohone James C. Tull SVP 16 15 (415) 263-4499 Please provide information on the history, details, and status or disposition of any disciplinary actions or complaints, arbitration, or litigation involving the above personnel. None 5. Which of the personnel who are listed in Question 4 have read the City's "Statement of investment Polic�', as amended 10 June 1999? James C. Tull 6. Please describe any formal program of supervision that your firm has established for the sales representative who is listed in Question 3. Lehman Brothers has in place procedures to monitor sales and trading activities, as well as employee personal investments, outside affiliations and political contributions. Lehman Brothers supervisory structure and processes have been set up to meet SEC, MSRB, NASD, NYSE and other relevant requirements including those that require periodic audits, which are performed by specially trained personnel independent of the business units they examine. Moreover, as no system of detection can be guaranteed perfect, we have implemented written policies and City of Palm Desert 1999 Broker-Dealer RFI Page 5 of 13 procedures, including a Code of Conduct distributed to all employees; and have made focused efforts to train and educate our employees with respect to the importance of compliance, business ethics and their responsibilities as employees. 7. Please provide four references from Califomia public sector clients that have established relationships with the sales representative who is listed in Question 3. Indicate: (a) name of govemmental agency; (b) contact person; (c) address; (d) telephone number; and (e) length of relationship. See attached references 8. Is your firm: (check one) ❑ A Dealer ❑ A Broker � A Broker/Dealer 9. Does your firm regularly report to the Market Reports Division of the Federal Reserve Bank of New York as a "primary dealer"? (check one) � Yes ❑ No If yes, how long has your firm been a primary dealer? Lehman Brothers has been a primary dealer for more than 25 years. 10. Please answer the following questions only if your firm IS NOT a primary dealer. a. Does your firm have a net capital position in excess of $100 million? (check one) ❑ Yes ❑ No b. Has your firm been in existence for more than five years? (check one) ❑ Yes ❑ No c. Is your firm currently licensed as a broker-dealer by the State of California? (check one) ❑ Yes ❑ No d. Is your firm headquartered or does it have a branch office in Califomia? (check one) ❑ Yes ❑ No City of Pa/m Desert • 1999 Broker-Dealer RFI Page 6 of 13 11. Is your firrn a member of the National Association of Securities Dealers? (check one) � Yes ❑ Nolf "no", why not? 12. Which of the following entities has the authority to oversee the operation of your firm, in terms of examinations, rules, and regulations? (check appropriate choices) ❑ FDIC � SEC � NYSE ❑ Comptroller of Currency ❑ Federal Reserve System � Other (example: state regulatory agency) (s eci Multistate firms please note: It is not necessary to include regulatory agencies that do not have jurisdiction over the your firm's activities in Califomia. State of California securities regulators 13. Is your firm owned by a holding company? (check one) � Yes ❑ Nolf "yes", what is th� holding company's name and its net capitalization? Lehman Brothers Holdings Inc. See enclosed Annual Report 14. Has your firm consistently complied with the Federal Reserve Bank's capital adequacy guidelines? (check one) ❑ Yes ❑ Nolf "no", please explain. As a registered broker-dealer Lehman Brothers is subject to SEC Rule 15c 3- 1, the Net Capital Rule. Lehman Brothers has consistently complied with this rule and is currently in compliance with the rule. We have enclosed a copy of our most recent Form 10-Q which sets forth Lehman Brothers' net capital. 15. What was your firm's total volume in United States Treasury and Agency securities trading last year? Firm-Wide: $ $6Trillion # of Transactions: 200,000 City of Pa/m Desert • 1999 Broker-Dealer RFI Page 7 of 13 Your Office: $ 4% of Total # of Transactions: 8,000 i 6. Which of the following instruments are regularly offered by your trading desk? (check appropriate choices) � T-Bills � Bankers's Acceptances (Domestic) � T-Notes � Bankers's Acceptances (Foreign) � T-Strips � Certificates of Deposit � Repurchase Agreements � Commercial Paper � Reverse Repo Agreements � Corporate Medium-Term Notes � Agencies (s eci � Money Market Mutual Funds Agency issuers include FHLB, FNMA, FHMLC, F'FCB 17. Which of the financial instruments that are described in Question 16 does your firm specialize in marketing? The Firm acts as a market maker in all major equity and fixed income products in both the domestic and international markets. Lehman Brothers is a member of all principal securities and commodities exchanges in the United States and holds memberships in several principal international securities and commodities exchanges. 18. Please describe the capital line and trading limits of the branch office of your firm that would be trading with the City. Capital lines and trading limits vary depending on the specific instrument involved and are determined on a case by case basis. 19. Is your firm a member of the Securities Investor Protection Corporation ("SIPC")? (check one) � Yes ❑ No 20. If "no" to Question 19, does your firm participate in any program that provides securities insurance coverage for a public sector client which buys the financial instruments that are listed in Question 16, on a delivery-versus-payment ("DVP") basis? (check one) City of Palm Desert - 1999 Broker-Dealer RFI Page 8 of 13 ❑ Yes ❑ Nolf "yes", please explain. 21. If "no" to Question 20, please explain why your firm does not carry any securities insurance coverage for its customers. 22. Please indicate a percentage breakdown of your firm's client base by portfolio size. The Firm, to the best of our knowledge, does not make the statistical analysis requested. If you have any particular concerns or questions, we would be happy to review them with you. 23. How many and what percentage of your securities transactions failed last month? Last year? The percentage of transaction that fail in any month is quite low. For example, the fail rate for commercial paper and tri-party transactions is less than 1%. To the extent you have speci�c areas of concern we would be happy to discuss them. 24. What precautions does your firm take to protect the interests of the public when dealing with public sector clients as investors? Please refer to the response to Item#4 above. 25.What trade documentation (e.g., transaction information, confirmations, statements, etc.) would your firm provide to the City? All customers receive contirmations for specific transaction, as well as periodic statements. We would be happy to discuss the types of additional reports you feel you might need. 26. What portfolio information, if any, does your firm request from its public sector clients? At the current time we would not require any specific portfolio information. 27.What makes your firm the best broker/dealer for the City? What advantage would the Ciry gain by trading with your firm? Given the size and scope of Lehman Brothers Fixed Income business, the City would benefit in terms of product offerings, pricing and execution versus our competition. An additional benefit is the experience and expertise of the sales coverage involvement with California public sector clients. Ciry of Pa/m Desert • 1999 Broker-Dealer RFI Page 9 of 13 SECTION IV: REQUEST FOR BROKER-DEALER CANDIDATE DISCLOSURE 28. Have any of your firm's public sector clients sustained a loss on a securities transaction within the last five years, arising from a misunderstanding or misrepresentation of the risk characteristics of a financial instrument that was recommended by and purchased through your firm? (check one) ❑ Yes ❑ Nolf '�res", please describe each matter briefly. The County of Orange, California has claimed that it sustained a loss on securities transactions, in part arising from a misunderstanding or misrepresentation of the risk characteristics of a tinancial instrument that it purchased through Lehman or its affiliates or subsidiaries. Lehman however has denied this claim. See the response to Item#29. 29. Have any of your firm's public sector clients claimed, in writing, within the last five years, that your firm was responsible for any investment losses? (check one) ❑ Yes ❑ Nolf "yes", please describe each matter briefly. Ia December, 1996, the County of Orange, California (the "County") filed a complaint naming 15 broker-dealers, including Lehman, as defendants. The complaint alleged that defendants sold the County unsuitable securities and entered into unsuitable reverse repurchase transactions with the County that were ultra vires. The County sought a declaration that the transactions were void and unenforceable and violated the California Constitution and Government Code, and it claimed that the defendants committed negligence. The Court granted summary judgment on the ultra vires claims. In January 1999, the County amended the Complaint to add breach of fiduciary duty and aiding and abetting breach of fiduciary duty claims. In June, 1999 the County announced a settlement with all remaining broker-dealer defendants, including Lehman. 30. Has your firm been subject to any liti ation, arbitration, or regulatory aroceedinas, either pending, adjudicated, or settled, within the last five years, that involved allegations of improper, fraudulent, disreputable or unfair activities related to the sale of securities to or the purchase of securities from institutional clients? (check one) � Yes ❑ Nolf "yes", please describe each matter briefly. The Firm is involved in a number of civil legal proceedings and arbitration proceedings concerning matters arising in connection with the conduct of its business. The Firm has denied, or believes it has a legitimate defense and City of Pa/m Desert 1999 Broker-Dealer RFI Page 10 of 13 will deny, liability in all significant cases pending against it and intends to defend actively each such case. All material proceedings in which there has been a final determination againsf the Firm, and all material litigation's involving the Firm, have been reported on the Firm's Annual Report on Form 10-K, Quarterly Report on Form 10-Q or on the Firm's Form BD, each of which is on file with the Securities and Exchange Commission. Copies will be furnished upon request. 31. Has your firm been subject to a regulatory, state, or federal agency investigation, within the last five years, for alleged improper, fraudulent, disreputable, or unfair activities related to the purchase or sale of securities? (check one) � Yes ❑ Nolf "yes", please describe each matter briefly. From time to time and currently, the Firm and its employees are the subject of inquiries and investigations conducted by regulatory authorities, including but not limited to the SEC, MSRB, NASD, NYSE and state securities regulators. The Firm routinely cooperates freely with such investigations and, to the best of its knowledge, is currently in compliance with all applicable requirements of the regulatory bodies having jurisdiction over it. SECTION V: CERTIFICATION I hereby certify that I have read and that I understand the investment policies and objectives of the City of Palm Desert, the Palm Desert Redevelopment Agency, and the Palm Desert Housing Authority (hereafter referred to collectively as the "City"), as represented in the City's "Statement of Investment Policy", as amended 10 June 1999. My firm will ensure that all affected sales personnel will be routinely informed of the City's investment objectives, horizon, outlook, strategies, and risk constraints, as the City provides such information. My firm will notify the City Treasurer immediately, by telephone, and, in writing, in the event of a material adverse change in its financial condition, or of any violation of Municipal Securities Rulemaking Board Rule G-37. My firm pledges to exercise due diligence in informing the City Treasurer of all foreseeable risks associated with any financial transactions that my firm undertakes with the City. I attest to the accuracy of my firm's response to the City's Request For information. NOTE: Completion of this Request For Information is only part of the City of Palm Desert's review process, and DOES NOT guarantee that the candidate will be authorized to provide financia/services to the City. City of Palm Desert 1999 Broker-Dealer RFI Page 11 of 13 This section must be signed by the sales representative who is listed in Question 3. Firm: ��/�1 ��j -(�'�-� Signed: � �� Title: ��i�- �1� ` ' ��-Gi ( �� Date: %'1l;(;tf�� `l` �� I --� This section must be countersigned by the Managing Director or by the most senior person in charge of the govemment securities operations section. F��,: L17�/fnl �tR�n n� Signed: j� C��'`-„-�--f Title: C� �auj�� .�?_ l��fi-n� Ml�+�y,�-z� Ui�ei..nZ . Date: y��g�9� / OFFICE OF THE TREASURER CITY OF PALM DESERT BROKER-DEALER REQUEST FOR INFORMATION For Calendar Year 1999 �1�'� - .� . , . ..,_ _ . . . Paul S. Gibson Treasurer 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 CANDIDATE:Chase Securities Inc. SECTION I: STATEMENT OF POSITION AND GENERAL REQUIREMENTS City of Palm Desert 1999 Broker-Dealer RFI Page 3 of 11 � A copy of the Form U-4—Unifornt Application for Securities Industry Reeistration or Transfer for each employee with whom the City would be trading. � A copy of the most recent Fortn U-4 Status Renort on each firm employee with whom the City would be trading. � A copy of the firm's most recent SEC Form X-17 A-5 filing or, in the case of a trading department within a commercial bank, its most recent Consolidated Reports of Condition and Income for A Bank With Domestic and ForeiFn Offices—F'FIEC 03] filing. � A resume on each firm employee with whom the City would be trading. � A trading resolution from the firm. � A copy of the firm's wiring and delivery instructions. � Samples of reseazch reports or market information that the firm regularly provides to public sector clients. � Samples of the firm's trade documentation. These documents may be delivered in person, by post, or by courier to: City of Palm Desert Attention: Thomas W. Jeffrey Investment Manager 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 If a broker-dealer candidate fails to submiz the above-referenced documents bv the specified deadline, ihen its RFI sHall be deemed ro have been automaticallv rejected bv the Citv That candidate shall not be eligible to reapplv for three vears If you have any questions about this RFI, then please call Mr. Jeffrey at 760.346.0611, extension 383. SECTION III: REQUEST FOR GENERAL INFORMATION FROM BROKER- DEALER CANDIDATE 1. Firm Name: Chase Securities Inc. 2. Contact Address: 840 Apollo Street, Suite 223 Ei Segundo, CA 90245 City of Palm Desert 1999 Broker-Dealer RFI Page 2 of 11 The City of Palm Desert, the Palm Desert Redevelopment Agency, and the Palm Desert Housing Authority (hereafter referred to collectively as the"City") are local governmental agencies that operate undex the laws of the State of California. The City manages a portfolio with a combined book value of approximately $330 million, which includes United States Treasury and Agency obligations, corporate obligations, and selected money market instruments. The City has adopted a written "Statement of Investment Policy" which governs the operation of its investment program. A copy of this document is enclosed. The City annually reviews Requests for Inforrnation ("RFP') which are completed and submitted by broker-dealers that wish to qualify as authorized providers of financia] services to the City. The City will notify all broker-dealer candidates, in wri[ing, on whether their request for such status has been approved or denied. If a candidate's request is denied or if its RFI is rejected for being incomplete or late, then that candidate shall not be eligible to reapply for three years. Regional btoker-dealers shall be eligible for consideration as authorized providers of financial services to the City onlv if they: 1. Have a net capital position in excess of$100 million; 2. Have been in existence for more than five years; 3. Are currently licensed as a broker-dealer by the State of California; and 4. Are headquartered or have a branch office in California. The City shall not transact business with an authorized broker-dealer until all of the documentation that both parties require, has been executed and delivered. SECTION II: APPLICATION DEADLINE AND REQUIRED DOCUMENTS The City must receive the following documents from each broker-dealer candidate by no later than 4:30 p.m. on Friday,20 August 1999: � A completed `Broker-Dealer Request For Information". � A copy of the firm's most recent Annual Report and Form 10-K. � A copy of the firm's Form BD—Uniform Application for Broker-Dealer Registration. � A copy of the firm's most recent Form BD Status Report. City of Palm Desert 1999 Broker-Dealer RFI Page 4 of 11 3. Contact Personnel: Thomas J. Brennan Sales Representative Suoervising Manaeer Name: Thomas J. Brennan Name: Kevin Clare Title: Global Markets Officer Title: Managing Director TEL: (3l0) 563-1900 TEL: (310) 563-]900 TEL: (800) 395-5823 TEL: (800) 395-5823 Name: Jeffrey B. Horn Tide: Vice President TEL: (310) 563-1900 TEL: (800) 395-5823 4. Please identify all personnel who would be trading with or quoting securities prices to the City. # of Years in #of Years Name Title Institutional Sales with Firm Teleohone Thomas J. Brennan Global Markets 3 1+ (310) 563-1900 Officer Jeffrey B. Horn VP ]0 1+ (310) 563-1900 Kevin T. Clare MD 15 2+ (3l0) 563-1900 Please provide information on the history, details, and status or disposition of any disciplinary actions or complaints, arbitration, or litigation involving the above personnel. U-4s enclosed. 5. Which of the personnel who are listed in Question 4 have read the City's "Statement of Investment Policy", as amended ]0 June 1999? Thomas J. Brennan and Jeffrey B. Horn City of Palm Desert 1999 Broker-Dealer RFI Page 5 of 11 6. Please describe any formal program of supervision that your firm has established for the sales representative who is listed in Question 3. We are in the process of revising and updating our written supervisory procedures which provide the supervision framework as required by the NASD. 7. Please provide four references from California public sector clients that have established relationships with the sales representative who is listed in Question 3. Indicate: (a) name of governmental agency; (b) contact person; (c) address; (d) telephone number; and (e) length of relationship. 1) Califomia State Teachers Retirement Fund 3) Los Angeles County California John Perez Richard Davis 7667 Folsom Blvd., Ste. 250 500 West Temple, Rm. 434 Sacramento, CA 95826 I.os Angeles, CA 90012 (916) 229-3737 (213) 974-2191 6 months 1 year 2) City of L.os Angeles 4) Orange County Treasurer Henry W. Davis III William C. Ebechardt, Jr. 215 W. 6�' St., 8'� F7oor 12 Civic Center Plaza Los Angeles, CA 900]4 Rm. G-76 (213) 485-6183 P.O. Box 4515 1 year Santa Ana, CA 92702 (714) 834-4774 1 year 8. Is your firm: (check one) ❑ A Dealer ❑ A Broker � A Broker/Dealer 9. Does your firm regularly report to the Market Reports Division of the Federal Reserve Bank of New York as a "primary dealer"? (check one) � Yes ❑ No If yes, how long has your firm been a primary dealer? Our firm has been a primary dealer for over 15 years, prior to the mergers of Manufacturer's Hanover and Chemical Securities. 10. Please answer the following questions only if your firm IS NOT a primary dealer. a. Does your£rm have a net capital position in excess of$]00 million? (check one) ❑ Yes ❑ No City ol Palm Desert 1999 Broker-Dealer RFI Page 6 of 11 b. Has your firm been in existence for more than five yeazs? (check one) ❑ Yes ❑ No c. Is your firm currently licensed as a broker-dealer by the State of California? (check one) ❑ Yes ❑ No d. Is your firm headquartered or does it have a branch office in California? (check one) ❑ Yes ❑ No 11. Is your firm a member of the National Association of Securities Dealers? (check one) � Yes ❑ No If"no", why not? 12. Which of the following entities has the authority to oversee the operation of your firm, in terms of examinations,rules, and regulations? (check appropriate choices) ❑ FDIC � SEC ❑ NYSE ❑ Comptroller of Cucrency � Federal Reserve System � Other (example: state regulatory agency) (s eci ) Multistate firms please oote: It is not necessary to include regulatory agencies that do not have jurisdiction over the your firm's activities in California. We are subject to the authoriry of state regulatory agencies in all 50 states. 13. Is your firm owned by a holding company? (check one) � Yes ❑ No If"yes", what is the holding company's name and �its net capitalization? The Chase Manhattan Corporation. Please see enciosed Annual Report. Chase Securities Inc.'s net capital as of 6- 30-99 was $900,347,028. 14. Has your firm consistenUy complied with the Federal Reserve Bank's capital adequacy guidelines? (check one) � Yes ❑ No If"no", please explain. City of Palm Desert 1999 Broker-Dealer RFI Page 7 of 11 15. What was your firm's total volume in United States Treasury and Agency securities trading last yeaz? Firm-Wide: $ 2,917,111,409,984 #of Transactions: N/A Your Office: $ 6,934,29Q080 #of Transactions: N/A 16. Which of the following instruments are regularly offered by your trading desk? (check appropriate choices) � T-Bills � Bankers's Acceptances (Domestic) � T-Notes � Bankers's Acceptances (Foreign) � T-Strips � Certificates of Deposit � Repurchase Agreements � Commercial Paper � Reverse Repo Agreements � Corporate Medium-Term Notes � Agencies (s eci ) ❑ Money Market Mutua] Funds FHLB, FHLMC, FNMA, GNMA, FFCB, TVA, SALLIE MAE 17. Which of the financial instruments that are described in Question 16 does your firm specialize in marketing? All instruments listed except Money Market Mutual Funds. 18. Please describe the capital line and trading limits of the branch office of your firm that would be trading with the City. Not applicable. This branch does not trade. 19. Is your firm a member of the Securities Investor Protection Corporation ("SIPC")? (check one) � Yes ❑ No 20. If"no" to Question 19, does your firm participate in any program that provides securities insurance coverage for a public sector client which buys the financial instruments that are listed in Question ]6, on a delivery-versus-payment ("DVP") basis? (check one) ❑ Yes ❑ No If"yes", please explain. City of Palm Desert 1999 Broker-Dealer RFI Page 8 of 11 21. If"no" to Question 20, please explain why your firrn does not carry any securities insurance coverage for its customers. 22. Please indicate a percentage breakdown of your firm's client base by portfolio size. We are an institutional broker/dealer. This information is not tracked. 23. How many and what percentage of your securities transactions failed last month? L.ast year? Six months— ]0%. Other numbers are not readily available. Failures are due to incorrect instructions or non-receipt of securities. 24. What precautions does your firm take to protect the interests of the public when dealing with public sector clients as investors? CSI is subject to the rules and regulations of the NASD and SEC which codify regulations on suitability and just and equitable principles of trade with investor clients. 25. What trade documentation (e.g., transaction information, confirmations, statements, eta) would your firm provide to the City? Confirmations and statements. 26. What portfolio information, if any, does your firm request from its public sector clients? Generally, CSI makes inquiries as to the investment objective and parameters of imestor clients. 27. What makes your firm the best broker/dealer for the Ciry? What advantage would the City gain by trading with your firm? Our firm is the best broker/dealer for Palm Desert and hence would give the City an advantage based on the following: 1) we would be a new entity for the City; 2) we are an affiliate of The Chase Manhattan Bank, one of the premier banks in the United States; 3) we are a primary broker/dealer; 4) we aze based out of New York City, the leading financial capital in the world; 5) we have one of the fastest growing money market departments in the United States; 6) we have a number of municipality clients throughout the United States and are actively looking to expand this client base. SECTION IV: REQUEST FOR BROKER-DEALER CANDIDATE DISCLOSURE 28. Have any of your firm's public sector clients sustained a loss on a securities transaction within the last five years, arising from a misunderstanding or misrepresentation of the risk characteristics of a financial instrument that was recommended by and purchased through your firm? (check one) City of Palm Desert 1999 Broker-Dealer RFI Page 9 of 11 ❑ Yes � No If"yes", please describe each matter briefly. 29. Have any of your firm's public sector clients claimed, in writing, within the last five years, that your firm was responsible for any investment]osses? (check one) ❑ Yes � No If"yes", please describe each matter briefly. 30. Has your firm been subject to any liti ation, arbitration, or re ul�ator_v proceedin�s, either pending, adjudicated, or settled, within the last five years, that involved allegations of improper, fraudulent, disreputable or unfair ac[ivities related to the sale of securities to or the purchase of securities from institutional clients? (check one) ❑ Yes � No If"yes", please describe each matter briefly. 31. Has your firm been subject to a regulatory, state, or federal agency investi ation, within the last five years, for alleged improper, fraudulen[, disreputabie, or unfair activities related to the purchase or sale of securities? (check one) ❑ Yes � No If"yes", please describe each matter briefly. RUG 30 '99 09:59AM CHRSE�CURITIES INC , P.2 Cfty of Pafm Desert 1999 Broker-Dealer RFI Page 10 of 11 SECTION V: CERTIFICATION I hereby certify that I have read and that I understand the investment policies and objectives of the City of Palm Desert, the Palm Desert Redevelopment Agency, and the Palm Desert Mousing Authority (hereafter referred to collectively as the "City"), as represented in the City's "Statement of Investment Policy', as amended 10 June 1999 (the "StatemenP� provided by the City as an attachment to the Oftice of the Treasurer, City of Palm Desert Broker-Dealer Request for Information for Calendar Year 1999 (the "RFI"). I have not read any of the statutes, municipal codes or procedures referenced in the Statement. The firm named below (the"Firm'� has implemented what we believe to be reasonable procedures and controls to attempt to preclude investment transactions inconsistent with the Statement. When notified in writing of the Firm's appointment tor inclusion on the City's Approved Provider List (as such term is defined in the Statement), I certify that the Firm's sales personnel who will be trading with or quoting securities prices to the City will be familiar with the then current investment objectives, eligible investments, and risk constraints as specified in the Statement attached to the RFI and shail exercise due diligence in disclosing fundamental risks associated with investments presented to the City. Upon actual receipt by the Supervising Manager oi the Firm identified in Section III, �uestion 3 of the RFI of written notification of a change to the investment objectives, eligible investment and risk constraints in the Statement, natification of such changes will be provided to the Firm's sales personnel trading with or quoting securities prices to the City. In the event of a change in the financial condition of the Firm that materially or adversely affects the Firm's ability to perform our obligations to you, the Firm will promptly notify the City Treasurer by telephone and in writing. In addition, the firm will exercise reasonabie diligence to notify promptly the City Treasurer by telephone and in writing of any violation of MuniCipal Securities Rulemaking Board Rule G-37. I attest to the accuracy of the Firm's response to the City's Request For Information. NOTE: Completion ol this Request For Information is only part ol the City of Palm Desert's review process, and DOES NOT gusranfee that the candidate will be authoriaed to provide financisl services to the City. RUG 30 '99 10:00RM CHRSE�CURITIES INC _, p,3 City of Palm Desert 1999 Broker-Dealer RFI Page 11 of 11 This section must be signed by the sales representative who is listed in Question 3. Firm: Chase Securities Inc. Signed; �ff```-�•, �- ��u.�.�.� Title: C�Lc ►�A � M�I �kc"�S � Fr�� 2 Date: � � 3� �99 This section must be countersigned by the Managing Director or by the most senlor person in charge of the Institutional Sales section. Firm: Chase Securities Inc. Signed; ,��— � i �� `� l._<< Title: /��. ,_ . . ��r=�� Date: � � 3 , �5 a� City of Palm Desert Internal Correspondence �ate: 9 September 1999 Subject: Annual Review of Statement of Investment Policy From: Thomas W. Jeffrey, Investment Manager �'� To: Paul S. Gibson, Director of Finance & City Treasurer As part of the City's annual review process, I recommend that the following changes be made to the Statement of Investment Policy for the Year 2000 for the City of Palm Desert, the Palm Desert Redevelopment Agency, and the Palm Desert Housing Authority (hereafter referred to collectively as the "City"1. All of the changes that are outiined below are substantive in nature. Paae 3 • Deletes paragraph 4 to avoid duplication with "Internal Controls" section; most of deleted contents are incorporated into paragraph 7 on page 3. • Revises paragraph 6 so that either the City Manager oi an Assistant City Manager could authorize an investment transaction if Finance management were unavailable. The current rigid, hierarchial approach is unnecessary. Page 5 • Adds paragraph 5 which: (1 � limits the maximum number of approved brokers to eight; (2) establishes that the City will solicit and accept new broker applications on an "as needed" basis; and (3) restricts potential applicants to the institutional securities sales departments of primary and regional brokers. • Revises paragraph 7, item #2 so that SEC Form 10-Ks are required. • Deletes paragraph 7, item #3 since this reportedly is now done electronically, not in certificate form. • Revises paragraph 7, item #f4 so that the correct SEC Form for banks is listed. Page 6 • Adds paragraph 1 , item #8 for the purpose of obtaining specific net capital position information. • Adds paragraph 1 , item #10 for the purpose of monitoring political contributions and any related violations. • Deietes paragraph 1 , item #11 since this reportedly is now done electronically, not in certificate form. Annual Review of Statement of Investment Policv 9 September 1999 Page 2 of 2 • Revises paragraph 2 by requiring that Investme�t Officers verify a prospective broker's Department of Corporations and NASD membership, which are now reportedly done electronically. • Deletes paragraph 3, sentence 3 which is irrelevant if the solicitation and acceptance of broker applications is done on an "as needed" basis. Page 9 • Under No. 1 , deletes three-year maturity limit on zero coupon Treasuries. This is impractical due to investment requirements of bond proceeds. • Under No. 2, changes "cost" to "book value" in order to reflect amortized portfolio cost. Also, increases callable agencies concentration limit from five to 10 percent per year in order to improve portfolio yield. Also, increases maximum concentration limit in a single government agency from 25 to 30 percent due to limited number of Agencies currently being offered to City (City and County of San Fiancisco use a 30 percent limit). • Under No. 3, incorporates language from California Government Code that allows purchase of inedium-term notes from commercial banks. Page 10 • Under No. 4, corrects error in California Government Code on maximum maturity of bankers's acceptances (180 days correct; 270 days incorrect). • Under No. 7, deletes language limiting investment to U.S. Treasury money market funds ("MMF") and incorporates language of California Government Code which allows investment in "prime" MMFs that hold Treasury, Agency, and corporate short-term securities. This would be consistent with the recent restructuring of the City and the RDA investment portfolios, with the aim of enhancing profitability through the acquisition of commercial paper, callable agencies, and medium-term notes. Paae 11 • Revises paragraph 1 so that the current requirements of the California Government Code are incorporated. Paae 13 • Revises paragraph 2 to reflect relatively low priority given to this item due to high quality and conservative profile of the City and the RDA portfolios. Page 16 • Adds three new primary dealers that are under concurrent review. • Adds CalFed and Wells Fargo Bank as potential public depositories. Adopted by the Ciry Council on FT CITY OF PALM DESERT STATEMENT OF INVESTMENT POLICY 2000 Certified by the Municipal Treasurers's Association of the United States and Canada (MTA US&C) on 4 June 1996 �'��'� � � PREPARED BY THE C1TY FINANCE DEPARTMENT Thomas W. Jeffrey, Investment Manager REVIEWED AND APPROVED BY Paul S. Gibson, City Treasurer City of Palm Desert Siatement of lnvestment Policy TABLE pF CONTENTS - PSE� I. OVERVIEW Inuoducdon Scope Standazd of Care Objectives II. INVESTMENT AUTHORITY Delegation of Authority Intemal Controls Conflicts of Interest III. PROVIDERS OF FINANCIAL SERVICES Authorized Broker-Dealers Authorized Public Depositories Safekeeping and Custody Collateralization IV. INVESTMENT INSTRUMENTS Authorized Investments Prohibited Investments and Practices Investment Pools V. PORTFOLIO MANAGEMENT Diversification Maximum Maturiry Portfolio Rebalancing Credit Downgrading Bond Proceeds VI. PERFORMANCE MEASUREMEN'[' Portfolio Benchmark Performance Reporting VII. POLICY REVIEW AND ADOPTION VIII. APPROVED PROVIDER LIST IX. GLOSSARY OF INVESTMENT TERMS Ciiy of Palm Desert Statement of/nvestment Policy I. OVERVIEW INTRODUCTION It is the policy of the City of Palm Desert, the Palm Desert Redevelopment Agency, and the Palm Desert Housing Authority (hereafter referred to collectively as the "City") to predicate their investment policies, procedures, and practices upon the limitations placed upon them by governing legislative bodies. These policies shall have three primary goals: • To assure compliance with federal, state, and local laws governing the investment of public monies under the control of the Ciry Treasuter. • To protect the principal monies entrusted to the City. • To generate the maximum amount of investment income within the parameters of prudent risk management as defined in this Statement of Investment Policy. For the purposes of this policy, "Investment Officers" shall be defined as the City Treasurer and the Ciry Investment Manager. SCOPE This Statement of Investment Policy shall apply to all funds that are under the control of the Ciry Treasurer including but not limited to the general fund; special revenue funds; debt service funds; capital project funds; enterprise funds; trust and agency funds; and any other funds under the conuol of the Ciry Treasurer. These funds are accounted for in the Ciry's Comnrehensive A�nual Financial Reportc. The City's Deferred Compensation Plan shall be excluded from the scope of this Statement of Investment Policy since it is managed by a third-party administrator and invested by individual plan participants. Investment Officers, however, shall be responsible for presenting quarterly reports to the Finance Committee and to the City Council that describe the investment of the Ciry's Deferred Compensation Plan assets. STANDARD OF CARE Investment Officers as trustees of public monies shall adhere to the "prudent investor" standard when managing the City's investment portfolios. They shall invest "...with cue, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic condidons and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidiry needs of the agency." _ � City of Palm Desert Statement of/nvestment Policy Investment O�cers who follow the provisions of this Statement of Investment Policy, and who exercise due diligence shall be relieved of personal responsibility for a security's credit risk or market price risk: nrovided, that they report substandal deviadons from expectations to the City Manager and to the City Finance Committee ("Finance Committee") in a timely manner, and that they take appropriate action to control adverse developments. OBdECTIVES The City's investment objectives, in order of priority, shall be: 1. Safetv. Safery of principal shall be the foremost objecave. Investmenu shall be made with the aim of avoiding capital losses due to issuer default; broker-dealer default; or market value erosion. Principal shall be preserved by mitigating: A. Credit Risk, the risk of loss due to the failure of the issuer of the security, shall be mitigated by investing in only ffie highest quality securities; by diversifying investments; and by pre-qualifying broker-dealers and public depositories; and B. Market Risk, the risk of loss due to a decline in bond prices because of rising market interest rates, shall be mitigated by structuring the portfolios so that issues mature concurrently with the City's anticipated cash requirements, thereby eliminating the need to sell securities prematurely on the open market. It is recognized, however, that in a diversified portfolio, occasional measured losses are inevitable and must be considered within the context of overall investment retum. 2. Lianiditv. An adequate percentage of the portfolios shall be maintained in liquid, short- term securities that can be converted to cash, if necessary, to meet disbursement requiremenu. Since all cash requirements cannot be anticipated, the portfolios should consist largely of securities with active secondary markets. These securities should have a relatively low sensitivity to market risk. Maximum overall portfolio maturities are referenced on page 12, paragraphs 2 and 3 of this Statement of Investment Policy. 3. Yield. Yield shall be considered only after the basic requirements of safety and liquidity have been met. Whenever possible and in a manner consistent with the objectives of safety and liquidity, a yield higher than the market rate of return shall be sought. ' 2 City of Palm Desert Statement of lnvestment Policy II. INVESTMENT AUTHORTTY p • • . ATION OF AUTHO iTY C'alifo ia ove ment Code Sections 53607 and 53608 authorize the legislative body of a local agency to invest, deposit, and provide for the safekeeping of the local agency's funds or to delegate those responsibilities to the treasurer of the local agency. Citv of Palm Desert Municjpal Code Section 3.08.010 delegates the authority to invest, deposit, and provide for the safekeeping of City public monies to the Ciry Treasurer. �jZy of Palm Desert Municipal Code Section 2.16.010 authorizes the City Director of Finance to serve ex o�cio as City Treasurer. The City Treasurer shail be responsible for all investment uansactions that are executed on behalf of the City. • , , , • The City Treasurer and the Investment Manager shall have the exclusive authority to buy and sell securities on behalf of the Ciry. 'They shall engage in mutual consultation and in collective decisionmaking on economic trends, investrnent opportunities, and portfolio swcturing. The Investment Manager may execute investment uansactions on behalf of the City only if the City Treasurer has previously authorized the transactions, in writing. If the City Treasurer is unavailable, , ' �4enage�;-ef{3�en , � , ' ' ' then the F �� e `s+�"1Ck�&q"w^�"9ry k+ztw., ' '�' ' v+asr W�G r r.�. G . author��the mvestment uansacuons, in wntmg�`�n�to,ex cuu n.: I : �vianager��s,un�available, Wen either the City Manager oi��sS� ��Ci � ranage a autho;ize the investment transacrions� in.K✓nting;'pnor,tq�gXecuuon. INTERNAL CONTROLS The Ciry Treasurer shall be responsible for ensuring that all investment transactions comply with the City's Statement of Investment Policy and for establishing internal controls that are desi�o�revent losses due to fraud, negli ence, and third Pa�r� misr resentation. �iCc rdmgTy, the Cify Treasui�er shall';es�ati�ish:`��'n::�'"i`�ure��fo a"th�� e b .-t.�, . � � x � �„,�. , �;: � Cit�+ mv�estment program that arg�`�g�s s�,gnt'- ,t�,pro��sionsw�s� 1a "` Investment Policy. ' 3 City of Palm Desert Statemeni of/nvestment Po/icy Internal controls deemed most important shall include: control of collusion; separation of dudes and administrative controls; sepazating transaction authority from accounting and record keeping; custodial safekeeping; clear delegadon of authority; management approval and review of investment transactions; specific limitarions regazding securides losses and remedial action; written confirmation of telephone transactions; and documentation of investment transacdons and strategies. The City Treasurer shall establish an annual process of independent review by an external audit firm. The external auditor shall review the management of the City's investment program in terms of compliance with the internal controls previously established in the City's Treasur; Policies and Procedures Manual. A Finance Committee consisting of City officials and community representatives shall be responsible for reviewing the Ciry investment reports, transactions, policies and procedures, and saategies, on a monthly basis. The Mayor; the Mayor Pro Tempore; the City Manager; the City Attomey; the Redevelopment Agency Executive Director; the City Treasurer; the Investment Manager; and various citizens who are appointed by the Palm Desert City Council ("City Council") pursuant to City ordinance shall sit on this committee. CONFLICTS OF INTEREST Investment Officers shall refrain from personal business activity that could conflict with the proper execution of the Ciry's investment program or impair their ability to make impartial investment decisions. They shall disclose to tl�e Ciry Council any material fmancial interest in financial institutions that conduct business within the City's jurisdiction. They shall also disclose any large personal invesunent positions that could be related to the performance of the City's invesUnent portfolios. Investment Officers shall subordinate their personal investment transactions to those of the Ciry, particularly with regard to the tuning of securities purchases and sales, and shall avoid transactions that might impair public confidence. Investment Officers and their immediate relatives shall not accept or solicit any gifts, gratuides, honorariums, or favors from persons or entities who provide or who are seeking to provide financial services to the City. " 4 City of Palm Desert Statement of/nvestment Po/icy III. PROVIDERS OF FINANCIAL SERVICES AUTHORIZED BROKER-DEALERS 1'he City Treasurer shall maintain an Approved Provider List (see page 16) of all securities broker-dealers that the Finance Committee and the City Council have authorized to engage in securities trading with the City. This list shall be provided to all members of the City Council and the Finance Committee. Any broker-dealer that has made a polidcal contribution within any consecudve four-year period Following 1 January 1996 in an amount that exceeds the limits in Municipal Securities Rulemaking Board ("MSRB") Rule G-37, to any member of or candidate for the Ciry Council, the Redevelopment Agency Board, the Housing Authority Commission, or the Finance Committee shall not be eligible to transact business with the City. Only primary dealers that regularly report to the Federal Reserve Bank of New York shall be eligible to apply for inclusion on the Approved Provider List. The only exception to the foregoing requirement shall be that the Finance Committee and the City Council may, at their discretion, accept, review, and approve applications from regional brokers that: (1) have been in existence for more than five years; (2) have a net capital position in excess of$100 million; (3) are licensed as broker-dealers by the State of California; and (4) are headquartered or have a branch office in California. The number of prima,ry dealers and regional,„brokqrs on ttie'App"o`��'�"d'°r'�: ezceed"a combined tofal of'eight at any smgle time The City "'� , " r ' w b_roker-dealer,applicapons only when theiei's an immediate need tq� ` "'�a� nc .. -t' . . . r a�, x ,,,�!: �Y�� ; �1,` '�rov�Pr�o�vid�r�Ias� �In all,cases� tlie�yt stiall o,�,nl�,accep��i bu�pes�with the inst►tuUonal.�ecunpes sales degartmenfs o, Pr�uar5�•r�e�.e�s�;s_'� S • �\.µ x.. b'rokers. Broker-dealers that wish to apply for inclusion on the Approved Provider List must, at a minunum, provide the City Treasurer with a copy of the following documents unless otherwise noted: 1. Completed Broker-Dealer Questionnaire and Certi cat�on �s�;� ` ,� . 2. Most recent Annual Repon and,mg,�t rgcent�5ecynues and,�xc,�nge�Gi��i�,;� (�SEC")Fqrm:lOnK; Y ff M M 4. National Association of Secundes Dealers ("NASD") Form BD Uni orm A�plication -.,v7+�-�-:c�ac�q,•�Ta� �t`� .ran�•raznr.r �IM; for Broker Dealer Registrat�on or,,m the�case,,,�,vg.inyestment departuieg��t►�, � ;�•� ,.. commercial bank; SEC Form MSD; 5. C�rrent NASD Form BD Status Report. ' 5 City of Palm Desert Statemeni of lnvesiment Policy 6. NASD Form U-4 — Uniform Application for Securides Industry Registration or Transfer for each employee with whom the City would be trading. - 7. C�rrent NASD Form U-4 Status Repon on eaeh employee with whom the City would be tradin . 8. 9. A resume from each em lo ee with whom the City would be vading. 10. �� : ' 11. A trading resolution. � Investment O�cers shall investigate all broker-dealer applicants in order to determine if they: (1) are adequately capitalized; (2) are subject to pending legal action (either the firm or the trader); (3) make markets in securities that are a ro riate for the Ci 's needs; e- - ; �i,�"u,�bgr,�. ; .��'a„�,�; Broker-dealer applicants may be requested to provide local government or other client references from within California. The Finance Committee and the City Council shall review the submitted documents, along with the Investment Officers's recommendations, and shall decide if any broker-dealer applicants should be added to the Approved Provider List. If a broker-dealer applicant fails to complete and submit the required documents on tune, then its application shall be deemed to have been automatically rejected. > . , The City Treasurer shall conduct an annual review, in March, of the financial condition and the registrations of all approved broker-dealers in order to determine whether they should remain on the Approved Provider List. In addition to other requirements, the City shall give all approved broker-dealers a copy of the City's current Statement of Investment Policy and a certification form. The completion and submission of the certification form by an approved broker-dealer shall constitute proof that it has received the City's Statement of Investment Policy, read it, and intends to comply with it. The City Treasurer shall keep current audited annual financial statements on file for each approved broker-dealer with which the City does business. AUTHORIZED PUBLIC DEPOSITORIES The City Treasurer shall maintain an Approved Provider List (see page 16) of all commercial banks and all savings and loan associations that the Finance Committee and the City Council have authorized as public depositories of Ciry monies. This list shall be provided to all members of the Ciry Council and the Finance Committee. " 6 City of Palm Desert Statement of lnvestment Policy The City shall only deposit public monies izt financial institudons that have: (1) at least $5 billion in total assets; (2) a core capital-to-total assets ratio of at least five percent; (3) favorable statistical ratings from a nadonally recognized rating service, as determined by the Ciry Treasurer; (4) a federal or a state charter; and (5) a branch office within Riverside Counry. Under no circumstances shall the City's deposits in a financial institudon exceed the total shareholders's equity of that instiNtion. SAFEKEEPING AND CUSTODY Investment Officers shall conduct all security uansactions on a delivery-versus-payment ("DVP") or on a receipt-versus-payment ("RVP") basis. A third-party bank trust departrnent that acts as an agent for the City under the terms of a custody agreement executed between both parties shall hold the securities. The only exception to the foregoing shall be securities purchases made with: (1) local govemment investment pools; (2) money market mutual funds; and (3) Federal Reserve Banks ("Treasury Direct Program") since the purchased securities are not deliverable. No securities broker-dealer or invesunent advisor shall have access to City monies, accounts, or investments. Any uansfer of monies to or through a securities broker-dealer must have the Ciry Treasurer's prior written approval. If the City Treasurer is unavailable, then the management authorization chain-of-command specified on page 3, paragraph 6 of this Statement of Investment Policy shall be followed. The City shall require Broker Trade Confirmations for all trades. Investment Officers shall review these confirmations immediately upon receipt, for conformity with the terms of the Ciry's Trade Sheets. COLLATERALIZATION Investment Officers shall ensure that all demand deposits and all non-negotiable certificates of deposit that exceed $100,000 shall be fully collateralized with securities authorized under state law and under this Statement of Invesanent Policy. Collateral may be waived for the first $100,000 since this will be insured by the Federal Deposit Insurance Corporation. Any amount on deposit over $100,000 plus accrued interest, however, shall be collateralized with United States Treasury or federal agency securities at a constant margin ratio of 110 percent or with mortgage-backed collateral at a constant margin ratio of 150 percent. Collateralized invesunents and demand deposits may require substitution of collateral. The City Treasurer must approve all requests from financial institutions for substitution of collateral that involve interchanging classes of security. " 7 City of Palm Desert Statement of lnvestment Policy An independent third party with which the City has a current custpdial agreement shall always hold the collateral. The independent third party shall provide the City Treasurer with a safekeeping receipt which he shall retain. _ $ City of Palm Desert Statement of lnvestment Policy IV. INVESTMEIVT INSTRUMENTS AUTHORIZED IlWESTMENTS 'The City is authorized to invest in the following financial instruments pursuant to �3]jf4iIIi3 Government Code Section 53600 et seq. Ciry investment policy is more than conservative than state law. 1. United States Treasury Bi1Ls, Notes, Bonds, and Certificates of Indebtedness There shall be no concentration limit on the purchase of Treasuries other than for zero coupon securities. �. Purchases of zero coupon Treasuries shall not exceed 10 percent of the cost value of the City's investment portfolios (excluding the gross proceeds of tax-exempt bonds). 2. Federal Agency and Instrumentality Notes Invesunent shall be permitted in the following discount and coupon securiry issuers: the Federal Farm Credit Bank, the Federal Home Loan Bank, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, the Tennessee Valley Authority, the Export-Import Bank of the United States, the Federal Land Bank, the Small Business Administration, and the Farm Credit Consolidated System. Purchases of callable securities shall not exceed 20 percent of the eesE �ook value of the City's investment portfolio. Purchases of callable securities shal[ not ezceed more than a s•-� �,. percent of the eesf book value of the City's investment portfohos fex��ding: ,.�-.. p�oceeds of tgx-exempt bonds) in any one year. No more than �3-30 percent of the ees� b�k value of the Ciry's investment portfolios (e.rcluding the gross proceeds of tax-exempt bonds) may be invested in any one issues, 3. Medium-Term Notes Investment shall be limited to medium-term notes ("MTN") rated "A" or better by Standard & Poor's Corporation ("Standard & Poor's") or by Moody's Investors Service, Ina ("Moody's"), that are issued by corporations organized and o�eraun m the United �,,. States or l�y; depository, insdtudop� licensed,by�e;�U�uted;:�tate� o�,b „�� pperating within the:United States. Purchases of 'A" rated MTNs shall not exceed nvo years to maturity; i1A" rated M7'Ns three years to maturiry; and "AAA" rated MTNs five years to maturiry. Purchases of MTNs shall not exceed 30 percent of the eesE �� value of the City's investment portfolios. No more than five percent of the eesF So� value of the City's investment portfolios shall be invested in the MTNs of any one issuer. Commercial paper holdings shall be included when calculating the n:aximum concentration amount for any one issuer. ' 9 City of Palm Desert Statement of lnvestment Policy 4. Bankers's Acceptances Investment shall be permitted in�effies�ie� bankers's acceptances ("BA") issued by commercial banks that are , , . . . �� . � . Purchases of BAs shall not exceed �B ,- days to maturiry. Purchases of BAs shall not exceed 40 percent of the eesF� value of the City's investment portfolios. No more than 30 percent of the ees� � value of the City's investment portfolios shall be invested in BAs issued by any one bank. 5. Commercial Paper Investment shall be permitted in prime commercial paper ("CP") that is rated "Al" by Standard & Poor's or "Pl" by Moody's. The issuing corporation must be organized and operating in the United States; have total assets of $500 million or more; and have long- term debentures that have been rated "A" or higher by Standazd & Poor's or by Moody's. Purchases of CP shall not exceed 180 days to maturity. No more than 15 percent of the sesa book value of the Ciry's investment portfolios shall be invested in CP. No more than 10 percent of the outstanding CP of any one issuer shall be purchased. 6. Non-Negotiable Certificates of Deposit Investment shall be permitted in non-negotiable, collateralized certificates of deposit ("CD") issued by qualified public depositories that meet the criteria specified on page 7, paragraph 1 of this Statement of Investment Policy. CDs shall be centralized at one designated office location for each financial institution. CDs that exceed $100,000 shall be collateralized pursuant to the collateralizadon provisions of this Statement of Investment Policy. Purchases of CDs shall not exceed one year to maturity. No more than IS percent of the eesE book value of the Ciry's investment portfolios shall be invested in CDs. If collateralization will not be involved, then no more than $90,000 may be invested in any one issuer. 7. Money Market Funds Investment shall be permitted in ' , , , �� R•:nti� M.. �. S��.f }en�fici�n�"eres �, � i maziagemen�mpanies that aze'm ne"y mark�nds;("MMF".reg�r `�w`it7t'�� under tlie Inves�ent Company,Act of"19�30: In seeking to maintain a stable share price of$1.00, the IviMF shall have a dollar-weighted average maturity of 90 days or less and shall purchase securities with an effective maturity of 13 months or less. Commission (e.g., sales load on purchases, reinvested dividends, redemptions, and exchanges) shall not be included in the purchase of any fund shares. A qualifying MMF must have: (1) ' 10 City of Palm Desert Siatement of/nvestment Policy total portfolio net assets of$S00 million or more; and (2) the highest rating of the two largest nationally recognized rating services Q$ an investment advisor who is registered with the SEC, and who has five years's or more of experience investing for MMFs of $500 million or more in total portfo[io net assets. The City shall require audited annual financial statements and a "Statement of Additional Infortnation" from each MMF in which it has ublic monies invested. 8. Local Agency Investment Fund ("LAIF") Investment shall be permitted in this pool which is organized and managed by the State Treasurer's Office for the benefit of local agencies, pursuant to Califomia Goveramenr �g Section 16429.1. The City Council and the Redevelopment Agency Board approved City participation in LAIF on 12 December 1981 in Resolution Number 81- 161. Investment shall be limited to the masimum amount per legal entity that is permitted under state law. PROHIBI'fED INVESTMENTS AND PRACTICES Investment Officers shall not invest public monies in financial instruments that are not authorized under this Statement of Investment Policy. Prohibited investments shall include, but shall not be limited to, equity securities, bond mutual funds, when-issued ("WI") purchases, repurchase agreements, reverse repurchase agreements, and derivative contracts (forwards, futures, and options). The purchase of derivative securities shall be prohibited except for callable and for zero coupon Treasury ("STRIPS") securities. InvesUnent Officers shall not engage in securities lending, short selling, or other hedging saategies. LAIF and MMFs shall be exempt from the prohibitions on derivative contracts, derivauve securities, repurchase agreements, reverse repurchase agreements, securities lending, WI purchases, short selling, and other hedging strategies. INVESTMENT POOLS Investment Officers shall investigate all local government investment pools ("LGIPs") prior to investing public monies and periodically thereafter while City public monies are invested in the LGIP. With the excepdon of LAIF, all LGIPs shall meet the criteria specified for money market funds in this Statement of Investment Policy. ' 11 City o{Palm Desert Siatement of lnvestment Policy V. PORTFOLIO MANAGEII�NT DIVERSIFICATION � Investment Officers shall diversify the City's investment portfolios by securiry rype and by issuer, except for bond reserve monies; bond escrow monies; and any other monies that the City Council or the Finance Committee designates. Investment Officers shall not invest in securides with maturities exceeding five yeazs. The Finance Committee and the City Council, however, may approve longer maturities for the investment of bond reserve, bond escrow, and other funds if the maturities of such investments are expected to coincide with the expected use of the funds. At least 50 percent of the Ciry portfolio shall mature in three years or less; 30 percent in two years or less; and 20 percent in one year or less. The only e�ception to these maturiry limits shall be the investment of the gross proceeds of tax-exempt bonds. PORTFOLIO F.BA AN IN In the event that portfolio percentage constraints are violated due to a temporary imbalance in the portfolio, then Investment Officers shall hold the affected securities to maturiry in order to avoid capital losses. If no capital losses would be realized upon sale, however, then Investment Officers shall consider rebalancing the portfolio after evaluating the expected length of time that it will be imbalanced. Portfolio percentage limits are in place in order to ensure diversification of the City invesunent portfolio; a small, temporary imbalance will not significandy impair that strategy. CREDIT DOWNGRADING This Statement of Investment Policy sets forth muumum credit risk criteria for each type of security. This credit risk criteria applies to the initial purchase of a security; it does not automatically force the sale of a security if its credit risk ratings fall below policy limits. If a security is downgraded below the minimum credit risk criteria specified in this Statement of Investment Policy, then Investment Officers shali evaluate the downgrade on a case-by-case basis in order to determine the security should be held or sold. The City Treasurer shall inform the Finance Committee at its next monthly meeting of the credit downgrade and of the Investment Officers's decision to hold or sell the downgraded security. ' 12 City of Palm Desert Statemenf of lnvestment Po/icy Investment Officers shall review the credit standing of all securides in the City's investment portfolios ea-aq�� SQ,Ns-a—O-�Ya--�SF - BOND PROCEEDS i The City Treasurer shall segregate the gross proceeds of tax-exempt bonds from the Ciry general pool and shall keep them in a separate pool. They shall be invested pursuant to the instructions in the respective bond indentures of trust. If the bond indenture authorizes investments that conflict with this Statement of Investment Policy, then such investments shall be made only with the Finance Committee's prior approval. All securities shall be held in third-party safekeeping with the bond trustee and all DVP and RVP rules shall apply. Investment Officers shall use competitive offerings, whenever practical, for all investment transacaons that involve the gross proceeds of tax-exempt bonds. The City shall obtain a minimum of three competitive offers. Any exceptions to this policy shall be documented and shall be reported to the Finance Committee at its next monthly meeting. The City is required under the U.S. Tax Reform Act of 1986 to perform annual arbivage calculations and to rebate excess earnings to the United States Treasury from the investment of the gross proceeds of ta�c-exempt bonds that were sold after the effective date of that law. The Ciry Treasurer may contract with qualified outside financial consultants to provide the necessary technical expertise that is required to comply with this law. ' 13 City of Palm Desert Statement of lnvestment Policy VI. PERFORMANCE MEASUREMENT The City's investment portfolios, for the most part, shall be passively managed with porifolio securities being held to maturity. On selected occasions, the City's portfolios may be actively managed for purposes of improving portfolio risk structure, liquidity, or yield in response to market condidons or to meet City requirements. Profit-taking may only be done if capital gains would: (1) exceed the retum that would be realized by holding the security to maturity; and (2) more than offset any income reduction due to reinvestment rate risk. • The City shall use a one-year United States Treasury bill that is traded on the secondary market as a benchmark to measure whether or not the City's portfolio yields are matching or surpassing the market yield. PF.RFORMANCE �PORTING The City Treasurer shall provide a monthly invesUnent report to the Finance Committee and to the City Council within 30 days of month-end or at the next scheduled City Council meeting following a Finance Committee meeting. This report shall include a complete portfolio inventory with details on issue, par value, book value, coupon/rate, original settlement date of purchase, final maturity date, CUSIP number, average weighted yield, average days to maturity, and market value (including source of market valuation). The report will include a statement on compliance or noncompliance with the Ciry's Statement of Investment Policy and a statement on whether there are or are not sufficient funds to meet the City's anticipated cash requirements for the next six months. ' 14 City of Palm Desert Statement of lnvestment Policy VII. POI.ICY REVIEW AND ADOPTION The City Treasurer shall submit a Statement of Investment Policy to the Finance Committee; the Ciry Councit; the Redevelopment Agency Board; and the Housing Authority Commission annually for their review and adoption. The City Treasurer shall submit this Statement to the Finance Committee by 30 November of each year. ' 15 City of Palm Desen Statement of lnvestment Policy VIII. APPROVED PROVIDER LIST The following institutions have been authorized by the City of Palm Desert, the Palm Desert Redevelopment Agency, and the Palm Desert Housing Authority to provide financial services to the City. iJNITED STATES GOVERNMENT 1. Federal Reserve Bank PRIMARY DEALERS 1. Banc of America Securities LLC 2. sri,w �ac:+� xe; 3. �,e _ � c� 4. Salomon Smith Barney, Inc. ��, �:� �-, 5. ZionsBanco�Uon REGIONAL BROKERS 1. Dean Witter Reynolds, Inc. 2. Union Bank of California 3. Wells Fazgo Bank PUBLIC DEPOSITORIES 1. Bank of America 2. California Federal Bank 3. Downey Savings & Loan 4. Glendale Federal Bank 5. Home Savings of America 6. Union Bank of Califomia 7. Washington Mutual Bank 8. Wells Fargo Bank CUSTODIAN 1. Union Bank of California TRUSTEE I. U.S. Bank " 16 City of Palm Desert Statement of lnvestment Policy IX. GLOSSARY OF IlWESTMENT TERMS AGENCIES. Federal agency and insuumentality securities. ASKED. The price at wlvch securities aze offered. BANKERS'S ACCEPTANCE (°BA"). A draft, bill, or exchange accepted by a bank or a trust company. Both the issuer and the accepting institution guarantee payment of the bill. BID. The price offered by a buyer of securities (when you are selling securities, you ask for a bid). See "Offer". BROKER. A broker brings buyers and sellers togeffier so that he can earn a commission. CERTIFICATE OF DEPOSIT (0°CD"). A time deposit with a specific maturity, as evidenced by a certificate. Large-denomination CDs are typically negotiable. COLLATERAL. Securities, evidence of deposit, or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies. COMPREHENSIVE ANNLJAL FINANCIAL REPORT ("CAFR"). The official annual report for the City of Palm Desen. It includes five combined statements for each individual fund and account group, that are prepared in conformity with GAAP. It also includes supporting schedules that are necessary to demonstrate compliance with finance-related legai and contractual provisions, extensive introductory material, and a detailed statistical section. COUPON. (a) The annual rate of interest that a bond's issuer promises to pay the bondholder on the bond's face value. (b) A certificate attached to a bond, that evidences interest due on a payment date. DEALER. A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his own account. DEBENTURE. A bond secured only by the general credit of the issuer. DELIVERY VERSUS PAYMENT. There are two methods of delivery of securities: (1) delivery versus payment (DVP); and (2) delivery versus receipt (DVR). DVP is delivery of securities with an exchange of money for the securities. DVR is delivery of securities with an exchange of a signed receipt for the securities. ' 17 City of Palm Desert Statement of/nvestment Po/icy DERIVATIVES. (1) Financial instruments that aze linked to, or derived from, the movement of one or more underlying indexes or securities, and may include a leveraging factor; or (2) financial conuacts based upon a nodonal amount whose value is derived from an underlying index or security (e.g., interest rates, foreign exchange rates, equities, or commodities). DISCOiJNT. The difference between the acquisition cost of a security and its value at maturity, when quoted at lower than face value. A security that sells below originat offering price shortly after sale, is also is considered to be at a discount. DISCOUNT SECURITIES. Non-interest bearing money market instruments that are issued a discount and that are redeemed at maturiry for full face value (e.g., U.S. Treasury Bills). DIVERSIFICATION. Aividing investment funds among a variery of securities that offer independent retums. FEDERAL CREDTT AGENCIES. Agencies of the Federal Government that were established to supply credit to various classes of institutions and individuals (e.g., S&Ls, small business firms, students, farmers, farm cooperatives, and exporters). FEDERAL DEPOSTT INSURANCE CORPORATION ("FDIC"). A federal agency that insures bank deposits, currendy up to $100,000 per deposit. F'EDERAL FUNDS RATE. The rate of interest at which Fed funds aze traded. This rate is currenlly pegged by the Federal Reserve through open-market operations. FEDERAL HOME LOAN BANKS ("FHLB"). Govemment-sponsored wholesale banks (currenUy 12 regional banks) which lend funds and provide conespondent banking services to member commercial banks, thrifr institutions, credit unions, and insurance companies. The mission of the FHLBs is to liquefy the housing-related assets of its members, who must purchase stock in their District Bank. FEDERAI. NATIONAL MORTGAGE ASSOCIATION ("FNMA"). FNMA, like GNMA, was chartered under the Federal National Mortgage Association Act in 1938. FNMA is a federal corporation working under the auspices of the Department of Housing and Urban Development (HUD). It is the largest single provider of residential mortgage funds in the United States. Fannie Mae, as the corporation is called, is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and aze widely accepted. FNMA assumes and guarantees that all security holders will receive timely payment of principal and interest. ' 18 City of Palm Desert Statement of lnvestment Policy FEDERAL OPEN MARKF.T COMA�IIITEE ("FOMC"). The FOMC consists of seven members of the Federal Reserve Boazd and five of the 12 Federal Reserve Bank Presidents. The President of the New York Federal Reserve Bank is a permanent member, while the other Presidents serve on a rotating basis. The Committee periodically meets to set Federal Reserve guidelines regazding purchases and sales of government securities in the open market, as a means of influencing the volume of bank credit and money. FEDERAL RESERVE SYSTEM. The cenval bank of the United States created by Congress and consisting of a seven-member Board of Govemors in Washington, D.C., 12 regional banks, and about 5,700 commercial banks that aze members of the system. GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ("GNMA" or "Ginnie Mae"). Securities that influence the volume of bank credit which is guaranteed by GNMA and issued by mortgage bankers, commercial banks, savings and loan associations, and other institutions. A security holder is protected by the full faith and credit of the U.S. Govemment. Ginnie Mae securities are backed by the FHA, VA, or FMAM mortgages. The term "passthroughs" is often used to describe Ginnie Maes. LIQUIDITY. A liquid asset is one that can be converted easily and rapidly into cash without a substantial loss of value. In the money market, a security is said to be liquid if the spread between bid and asked prices is narrow, and reasonable size can be done at those quotes. LOCAL GOVERNMENT INVESTMENT F'UND ("LAIF"). Monies from local governmental units may be remitted to the Califomia State Treasurer for deposit in this special fund for the purpose of invesunent. MARKET VALLTE. The price at which a security is trading and could presumably be purchased or sold. MASTER REPURCHASE AGREEMENT. A written conuact covering all future transactions between the parties to repurchase-reverse repurchase agreemenu, that establishes each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer (lender) to liquidate the underlying securities in the event of default by the seller (borrower). MAT[7RITY. The date upon which the principal or stated value of an investment becomes due and payable. MONEY MARKET. The market in which short-term debt instruments (e.g., bills, commercial paper, bankers's acceptances) are issued and traded. OFFER. The price asked by a seller of securities (when you are buying securities, you ask for an offer). See `:4sked" and "Bid". " 19 City of Palm Desert Statement of/nvestment Policy OPEN MARKET OPERATIONS. Purchases and sales of govemment and certain other securities in the open market by the New York Federal Reserve Bank, as d'uected by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit; sales have the opposite effect. Open market operations aze the Federal Reserve's most important and most flexible monetary policy tool. PORTFOLIO. A collection of securides held by an investor. PRIMARY DEALER. A group of government securities dealers that submit daily reports of market activity and positions, and monthly financial statements to the Federal Rese.rve Bank of New York, and are subject to its informal oversight. Primary dealers include Securities and Exchange Commission (SEC) -- registered securides broker-dealers, banks, and a few unregulated firms, PRUDENT INVESTOR RULE. An investment standard. A fiduciary, such as a trustee, may invest in a security if it is one that would be bought by a prudent investor acting in like capacity, who is seeking reasonable income and preservation of capital. QUALIFIED PUBLIC DEPOSITORIES. A financial institution that: (1) dces not claim exemption from the payment of any sales, compensating use, or ad valorem taxes under the laws of this state; (2) has segregated for the benefit of the commission eligible collateral having a value of not less than its maximum liability; and (3) has been approved by the Public Deposit Protection Commission to hold public deposits. RATE OF RETURN. The yield obtainable on a security based on its purchase price or its current market price. REPURCHASE AGREEMENT ("RP" OR �°REPO"). A holder of securities sells them to an investor with an agreement to repurchase the securities at a fixed price on a fixed date. The securiry "buyer", in effect, lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate him for this. Dealers use RP extensively to finance their positions. Exception: when the Fed is said to be doing RP, it is lending money (increasing bank reserves). SAFEKEEPING. A service to customers rendered by banks for a fee whereby securities and valuables of all types and descriptions are held in the bank`s vaults for protection. SECONDARY MARKET. A market made for the purchase and sale of outstanding issues following the initial distribution. SECURITIES AND EXCHANGE COMMISSION. An agency created by Congress to administer securities legislation for the purpose of protecting investors in securides transactions. ' 20 City of Palm Desert Statement of lnvestment Po/icy SEC RiTLE 15c3-1. See "Uniform Net Capital Rule". STRUCTURED NOTES. Notes issued by instrumentalities (e.g., FHLB, FNMA, SLMA) and by corporadons, that have imbedded opdons (e.g., call features, step-up wupons, floating rate coupons, derivative-based returns) in their debt structure. The market performance of structured notes is affected by fluctuating interest rates; the volatility of imbedded options; and shifts in the yield curve. TREASURY BILLS. A non-interest bearing discount security that is issued by the U.S. Treasury to finance the national debt. Most T-bills are issued to mature in three months, six months, or one year. TREASURY BONDS. Long-term, coupon-bearing U.S. Treasury securides that aze issued as direct obligations of the U.S. Government, and having initial maturities of more than 10 yeazs. TREASURY NOTES. Medium-term, coupon-bearing U.S. Treasury securities that are issued as direct obligations of the U.S. Government, and having initial maturities of two to 10 years. UNIFORM NET CAPITAL RULE. SEC requirement that member firms, as we1T as no�unember broker-dealers in securities, maintain a maximum ratio of indebtedness-to-liquid capital of 15 to 1. Also called net capital rule and net capita ratio. Indebtedness covers all money that is owed to a firm, including margin loans and commitments to purchase securides (one reason that new public issues are spread among members of underwriting syndicates). Liquid capital includes cash and assets easily converted into cash. YIELD. The rate of annual income return on an investment, expressed as a percentage. (a) INCOME YIELD is obtained by dividing the cunent dollar income by the current market price for the security. (b) NET YIELD or YIELD TO MATURITY is the current income yield minus any premium above par or plus any discount from par in purchase price, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond. ' 21 NEW BUSINESS -- ITEM J TREASURY POLICIES AND PROCEDURES PREVIOUSLY DISTRIBiTTED POR REVIEW P,L�AS�BRTN� TO M��TING