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HomeMy WebLinkAboutJANUARY - MARCH 2000 INVESTMENT AND FINANCE COMMITTEE INVESTMENT 8i FINANCE COMMITTEE ATTENDANCE LIST July 1999 - June 2000 NAMES Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 21 18 15 20 17 15 19 23 15 19 17 21 Mayor Crites X N A A A A A X X Russ Campbell A 0 E X X X X X X Ray Diaz A M X X X X X X A Dave Erwin X E X X X A X A A Jim Ferguson X A X A Paul Gibson X E X X X X X X X Thomas Jeffrey X T X X X X X X X Bob Spiegel X 1 X X X X Replaced by Mayor Pro Tempore Murray Magloff X N X X X X X X X Carlos Ortega X G X X A X X A A Oct. 20 - Dave Yrigoyen for Carlos Ortega Nov. 17 - John Wohlmuth for Ray Diaz Dec. 15 - Sheila Gilligan for Ray Diaz Dec. 15 - Bob Spiegel for Buford Crites Members: 10 Quorum: 6 E: Excused A: Absent X: Present Revised 3/15/00 vla cc:Noreen Bouchard, City Clerk *Note: Quorum equals half of total plus one. AGENDA INVESTMENT & FINANCE COMMITTEE WEDNESDAY, March 15, 2000-- 11:00 A.M. NORTH WING CONFERENCE ROOM I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES Rec: Approve the Minutes of February 23, 2000 as submitted. Action: IV. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not otherwise on the agenda may address the Investment & Finance Committee at this point by giving his or her name and address for the record. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. B. This is the time and place for any person who wishes to comment on non- hearing agenda items. It should be noted that at the Investment & Finance Committee's discretion, these comments may he deferred until such time on the agenda, as the item is discussed. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. V. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks for Section 4 Rec: Report by Carlos Ortega. Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status Report on issuing new bonds. Action: C. Review of Request for Proposals for Trustee Services 1. Union Bank of California 2. Wells Fargo 3. Bank of New York 4. U.S. Trust 5. State Street Bank AGENDA - INVESTMENT & FINANCE COMMITTEE March 15, 2000 VI. NEW BUSINESS A. City and Redevelopment Agency Investment Schedule for February, 2000 Rec: Review and submit to the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity during the month of February. Review status of capital projects and cash {low projections. Action: B. Review Short Term Investments Maturing in March, 2000 Rec: Review investments in 1) collateralized deposits; 2) treasury bonds and notes; and, 3) agencies discount notes. Action: C. State of California Local Agency Investment Fund Monthly Reports for, anuary. 2000 Rec: Informational item for the Committee to review. No action required. D. Monthly Financial Report for City Council for February. 2000 Rec: Report and submit to City Council. Action: E. Parkview Professional Office Buildings - Financial Reports for February. 2000 Rec: Review and file report. Action: F. Desert Willow Golf Resort Financial Information for February. 2000 Rec: Review and file report. Action: G. Palm Desert Recreation Facilities Corporation Income Analysis for February, 2000 Rec: Review and file report. Action: AGENDA - INVESTMENT & FINANCE COMMITTEE March 15, 2000 VII. REPORTS AND REMARKS A. Reports and Remarks by any Committee Member 1. Trustee Service Agreement B. Items to he placed on the Next Agenda VIII. NEXT MEETING DATE Next regularly scheduled meeting is: 'Welnegaayy A1prJ 29, 2000 at 11-00 Demme IX. ADJOURNMENT I herehy certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert Investment and Finance Committee was posted on the City Hall hulletin hoard not less than 72 hours prior to the meeting. Dated this March 9, 2000. Veronica Aharca, Recording Secretary Minutes Finance Committee CONVENE On February 23, 2000, the Investment & Finance Committee was called to order at 11:05 a.m. by Mr. Paul Gibson. ROLL CALL Russell Campbell, Ramon Diaz, Jim Ferguson, Paul Gibson, Thomas Jeffrey, Murray Magloff, Carlos Ortega, Bill Veazie and Veronica Aharca, recording secretary. Gregg Lindquist, Kemper Sports Bill Veazie, Jr., Guest APPROVAL OF MINUTES On a motion by Mr. Diaz, seconded by Mr. Campbell, the Minutes of the January 26, 2000 meeting were approved as submitted. ORAL COMMUNICATIONS None. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks for Section 4 Information has been received with regards to the background checks. A sub- committee meeting will need to be held to review the information. B. Bond Issuance by Palm Desert Financing Authority . There were no changes to the previous months report. NEW BUSINESS A. Citv and Redevelopment Agencv Investment Schedule Mr. Jeffrey stated that the boot value of the City Portfolio as of January 31, 2000 was $171 million. The increase from December is due to the tax increment received. 1 T MinutesO Finance Committee The book value of the Redevelopment Agency Portfolio as of January 31, 2000 was $149 million. The increase from December is again, due to tax increment received. Receive and file reports. B. Review Short Term Investments Maturing in February. 2000 There were no changes to the previous month's report. C. State of California Local Agency Investment Fund Monthly Report Mr. Gibson stated that the LAIF Statement for January, 2000 had not been received in time to distribute to the committee. Mr. Gibson stated that New Business Items F, G and Old Business Item C would be taken out of order so Mr. Lindquist could be excused from the remainder of the meeting. F. Desert Willow Golf Resort Financial Information for Ianuary. 2000 Mr. Lindquist stated that there were 7,646 total rounds for January, 2000, compared to a budgeted 8,056. The decrease in rounds is to ten days of morning frost compared to three days in January, 1999. Mr. Lindquist stated that all revenues were below budget for January, however are still ahead of 1999. The decrease in revenue compared to budget is due the extended completion date of the Clubhouse. It had originally been scheduled for opening in November, 1999. In total Desert Willow is 6%below budget in revenues. Mr. Lindquist stated that the expenses for the month of January are ahead of budget $20,000. The increase is due to refunds due to the Golf Shop which have not yet been received. Once received, this should reverse. Year to date we are behind budget by$201,778, with the bulk being attributed to the month of January. Mr. Lindquist contributed the delusion of rounds to new courses opening up in the Valley, following a consensus he did with local golf courses. Mr. Diaz ...n.... : .: v ;... .... .. .n - n....:....nn. T. .a.ti. �: .:�r....a a. ..va..Nr�'Jiaal'.. a ....1. .a.•n ..� .v M1.a• vr. ..r. .f. • a a Minut a Finance Committee asked if it was possible to get a list of rounds at other courses to compare. Mr. Lindquist stated that all courses seem to be in the situation. Receive and file report. G. Palm Desert Recreation Facilities Corporation Income Analysis for Ianuarv. 2000 Mr. Lindquist reviewed the report and asked if there were any questions. Receive and file report. D. Monthly Financial Report for City Council for the month ending January, 2000 Mr. Gibson stated that currently revenues are at$13.5 million compared to a budgeted$10.9 million. Overall TOT reflects an 15% increase in revenues. Property taxes are at 9$1.2 million compared to a budgeted $.9 million. Year to date we are $2.5 million over budget. Mr. Gibson stated that the expenditures are all on track with budget. The Redevelopment Agency received the tax increment in January. Receive and file report. E. Parkview Professional Office Buildings - Financial Reports for the month ending Tanugry. 2000 Mr. Gibson stated that Parkview Office Complex is doing well. Revenues are $39,000 ahead of budget and expenditures are below budget. The State Rehabilitation Department has moved in. There are three issues which we are currently addressing with regards to the tenant improvements. Receive and file report. H. City of Palm Desert CAFE for the Year Ended June 30..1999 Receive and file report. a 3 Minutes* Finance Committee I. Palm Desert Redevelopment Agency C U F R for the year ending Tune 30, 1999 Receive and We report. REPORTS AND REMARK Request for Proposal for Trustee Services The current contract for trustee services with U.S. Bank expires in June. Over the summer, U.S. Bank went through reformation and we have incurred several problems. Since that time there have been mistakes such as, $3 million going to the wrong agency, making wrong investments, the processing' time has changed since we now deal with east coast operations. Proposals are due to the city by Friday, March 3, 2000. A direct questionnaire, unique to the State of California, was developed in order to assist in the process. NEXT MEETING DATE The next Investment & Finance Committee meeting will be held Wednesday, March 15, 2000 at 11:00 a.m. ADJOURNMENT Upon motion by Mr. Ortega and seconded by Mr. Crites the Investment & Finance Committee adjourned at 11:50 a.m. Respectfully submitted, Veronica L. Abarca, Recording Secretary 4 Z D > 0 ;a -4 0 z X X ^D m m (a » — c < » o u�i y 01 O 0) N , C o AA) nO � � m CD ; � mm c CD 90 go (0 O m to a' c y m °, CD G) y CD n K H CD to � a 3 CDCD 0 d C (D w a a t0 N (A N CD W A N OD 00 s 0 C 01 W 00 V A -4 -4 CVO 00 Ul N (D) O W O W O O7 . V to 0 O OD U) W T O) co W N CN to A CT OD O N N C W O W (n A N 00 W OD A V O —I 0) CD CD x to o — w n 0) CD O CD W A N cn C77 O tD CT W V " O j -4 N O O O A A 0) N C. 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N wz ._7,- _ _. m a arm--.. m -� A�'SwY�k±:fids;F'k.Y�¢"fd�CSTie'l�SkE . O m r r m S I� N < 4a Et rm my W � iy >♦ }iaC.ri$P.�tc Aa Yr.�V.,�'•e1.k`++}.a'.R. 6 � N o Z 2 � 0 mO D n V N O m � g 9tAf C a��'sfYxG t 'iti�wki�F4i#ilk€ g T � + ,YOY O J CITY OF PALM DESERT • INVESTMENT ACTIVITY REPORT• FEBRUARY 2000 EXECUTIVE SUMMARY As of 2/29/00, total portfolio book value was approximately$166.7MM. This reflected a net decrease of approximately$4.9MM from prior month due to payment of debt service. There was an unrealized portfolio net loss (market value-book value)of approximately$212M, based upon prevailing market interest rates. This was only a "paper" loss since there was no profit-taking. Significant changes in investment position are shown below: "United States Treasury-Coupon". 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$2MM DUE TO A MATURING SECURITY. "Federal Agency-Coupon". The City 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.Government's"moral obligation"). Although unrated,considered"AAA." THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$2MM DUE TO A MATURING SECURITY. "Local Agency Investment Fund (LAIF)". 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 INCREASED BY APPROXIMATELY$3MM DUE TO MATURING SECURITIES. "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. "City Loan 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. "Fidelity 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$3.1MM DUE TO MATURING SECURITIES. "United States Treasury-Discount". 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. "HtphMark 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, underlying securities considered"AAA". THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$4.9MM DUE TO MATURING SECURITIES. "State & Local 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 Notes". 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$13M DUE TO AMORTIZATION OF PREMIUMS. "Federal Agency-Discount'. The City buys noninterest-bearing federal agency notes ate discount. THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$2MM DUE TO A MATURING SECURITY. "Commercial Paper". The City buys high-grade, unsecured commercial paper at a discount, with maturities of 180 days or less, from Fortune 500 companies. THIS ACCOUNT BALANCE DID NOT CHANGE. y ti n y z N 3 m o (A c H m m � z 1 m m 0) A W N W N --. 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N Am A° T �O=O •+O O N+OI IJ NtON O � C D 0)N J+ Gf+�O pp V ttnnpp j O p + _ i0 z O +N W .� N �O)b�O 2 =O z (m.W� N(Qro� N¢+¢ oNp�O W ow N AO W YE FDA tW0 N m Lj 8 v _ m N T y m �r ,emy S Ty]1 mmm a� v c s YIELD(%) W A A A A N N N N § OM b N A J tO N a V fD C z $MILLIONS O a m O p p m • o 0 0 °J PORTFOLIO � .#, <,a.=�r•�.;�aarcw.;:va e '". � >s s s Mama P-01 i O `� +3fr#d:"'+-ksY,2i, x4 `��'�z'tsi'� m N • .xR^ ,by M' *?�, q v.,✓.�Wssti,dy�...ad. ■ $ -u $ m b, O D a$ m N $ V m 9 H O z Z y m G mom O < m m m C x 5„t. . ;vm..t »c: r s,•.^r. 0 6 4 n a m m '� N c p ■ Z m C yam0 . "i r m rD W. n D C O m m 9 ry y N m �+. ra�aa ;v^a'tu�vawi: < i Yn'�'a D ; m 0 c r m z 6 = z N N o N �' O r D • H a ,n a..zaezS,i' Fz rd.PYr.�+.e Pd,S m < N O s m N � � Y=.ivW✓s..h.,""lA^.H,'4`.-"�.�,d_b'�5AV a2rs �7 y m b �C 8 %i(.SM �fiS kii"-a•7�tPat':„iC(.�%ot.M r;4 . O T y II REDEVELOPMENT AGENCY I* INVESTMENT ACTIVITY REPORT • FEBRUARY 2000 EXECUTIVE SUMMARY As of 2/29/00, total portfolio book value was approximately$149MM (with SLGS). This reflected a net decrease of $39M from prior month due to payment of debt service. There was an unrealized portfolio net gain (market value-book value)of approximately$186M, based upon prevailing market interest rates. This was only a "paper"gain since there was no profit-taking. Significant changes in investment position, by security type, are discussed below: "State& Local Govt Series -Coupon." Palm Desert Financing Authority 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 DID 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 $3.91MMM 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 BYAPPROXIMATELY$381M DUE TO MATURING SECURITIES. "Local Agency Investment Fund (LAIR." RDA invests City's loan 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 INCREASED BY APPROXIMATELY$1MM DUE TO MATURING SECURITIES. "United States Treasury-Coupon." RDA buys interest-bearing U.S. Treasury notes with maturities of 2- 10 years to invest tax-exempt bond proceeds. Although unrated, considered "AAA". THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$162M DUE TO A MATURING 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 yield and arbitrage rebate restrictions). Nonmarketable.Although unrated, considered"AAA." THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$394M DUE TO A MATURING SECURITY. "United States 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 DID NOT CHANGE. "HighMark Sweep 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 BALANCE INCREASED BY APPROXIMATELY$130M DUE TO INTEREST COUPON INCOME. "Federal Agency-Coupon." RDA buys U.S. government 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. Government's"moral obligation"). Although unrated, considered "AAA." THIS ACCOUNT BALANCE INCREASED BYAPPROXIMATELY$5M DUE TO AMORTIZATION OF DISCOUNTS. "Federal Agency -Discount". The City buys noninterest-bearing federal agency notes at a discount. THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$999M DUE TO A MATURING SECURITY. "Commercial Paper". The City buys high-grade, unsecured commercial paper at a discount, with maturities of 180 days or less, from Fortune 500 companies. THIS ACCOUNT BALANCE DID NOT CHANGE. "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 INCREASED BYAPPROXIMATELY$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 ACCOUNT BALANCE DECREASED BY APPROXIMATELY$2M DUE TO AMORTIZATION OF PREMIUMS. a ti n 1 O eni 3 � y -myi � a o y 3 m m z n " 1 N m m W N 01 A W N W N -i (1_) aom ^ cn3v =v cn 0C) 0 mN -Ti TT7 m m x m co N y, 2�p Z , CD CD m cC O o O O (° 0 0 N O M. O N W Z Z N O O N CD W N O CO N Ch CD CCDD - C z CD ov`° CD h o c O z 3 0 3 3 c n n °o m CD A ° , C-D c K v Z) CD CD CD l ..a N Q > fn n -0 n o � n o y m o o n o o v N D 3 O ° co a o � D E CD C, Z 7 0 CD O ° j 0 O. z o '. o O CD 0 o O CD �° o ydrn {n <° o . p 'o � ° ^ ° a T m . O O T n,< O O -0 — , rN y N q ° ° °Op ° n o n u ° O v, ° m p y O ol o .. > r N D z A m T m W T c 00 AA OOOcoO CD A nT � 0 0 0 0 0 0 0 0 0 0 0 0 0 0 e e o o e o c e c c c o 0 o m 0 0 it o0 O <n E» rn vi En va vi 4919 t» En to v+ ss D O N N N 0 _CA Cl) W cn nM v O O co Nc0 00 0 N C co O O OD (0 O a 0 A_ A ri el) K) c0 cD W N V O O Cl) CA W N i N N O 0 O 3 m mmmm mmm m m cn rz cn mmcncn cnmcn v, m cn D z n m g n n 3 W Q - n z i O N < v O `OC 0, fmA 3 m � 3 w a o z N N � W � w T m c n -+ Ot ? co N A W N (n A W N (D 3 2 n ° ID 0 D w N co m D a cD 3 N N 41 3 `G N C 'z9 y o C y N (n < O 0 V 3. C o +' 0 o C o m m C S m m (o CD m _ p °d fn O �(a 7 0 (D Vi ° � O O D O D M z ° N N N o o o ra _ O C o = 0 o r o CD o o o00• ) a o ° O� F ° n v C) z =o. CD OW O N N N V O O CD CD D C ^ CD 3 Oii 3 n o N ° o A N n o 0 1 0 0 CD CD CD o m � N c °- o m � CA 3 (D N J — M N ^ d r? 0 C 0 N < c N Z 0 n 1 m m m W X v c 0 o zA < CY) o o nT N m0 0 1 r o0 O fA fH FA w w n0 M w DO a cn y r N O 0 n 0 3 m m m m m m r z cn (n (n co to (n D z n m ' ..:..� . ....a::. .a_: .a ... ... ... .:... ..._ i .. .. �• u:... •1..�� a.�: �. . ... .a.. ..•a ,..� !4 ..a., •.in. .I..IJV Hlr. 1. ..a .ate..� STATE OF CALIFORNIA • • PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER SACRAMENTO Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January,2000 Statement CITY OF PALM DESERT Account Number : 98-33-621 Attn: CITY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 Transactions Effective Transaction Tran Confirm Authorized Amount Date Date Type Number Caller 01-14-2000 01-13-2000 QRD SYSTEM 185,496.84 01-26-2000 01-25-2000 RD 829625 THOMAS JEFFREY 10,500,000.00 Account Summary Total Deposit : 10,685,496.84 Beginning Balance : 12,115,828.37 Total Withdrawal : 0.00 Ending Balance : 22,801,325.21 V 1 {c"I fCd _L'� � Page : 1 of 1 STATE OF CALIFORNIA PHILIP ANGELIDES. Treasurer OFFICE OF THE TREASURER SACRAMENTO Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January,2000 Statement PALM DESERT REDEVELOPMENT AGENCY Account Number : 65-33-015 Attn: TREASURER 73-510 FRED WARING DRIVE PALM DESERT CA 92260 Transactions Effective Transaction Tran Confirm Authorized Amount Date Date Type Number Caller 01-05-2000 01-04-2000 RW 58923 THOMAS W. JEFFREY - 5,829,000.00 01-14-2000 01-13-2000 QRD SYSTEM . 105,367.39 01-26-2000 01-25-2000 RD 576842 THOMAS W. JEFFREY 10,500,000.00 Account Summary Total Deposit : 10,605,367.39 Beginning Balance : 7,655,294.71 Total Withdrawal : - 5,829,000.00 Ending Balance : 12,431,662.10 J f\ f VA `�� C� Page : I of 1 PALM DESERT REDEVELOPMENT A COMBINED STATEMENT REVENUE AND EXPENDITURES CO Mid-year adjustments are included. 29-Feb-00 TOTAL RDA -RDA _ RDA %OF ACTUAL (FAV)UNFAV BUDGET YTD BUDGET ACTUAL TO YTD BUDGET VARIANCE REVENUES 1 Tax increment 28,323,686.00 18,882,457.33 16,003,843.88 85% 2,878,613.45 2Interest 2,060,000.00'` 1,373,333.33 1,647,474.70 120% (274,141.37) Sales of Property - - 0% 3 Reimbursement From Other Agencies -725,000.00 483,333.33 250,729.52 52% 232,603.81 Other Revenue - 40,890.42 0% (40,890.42) Transfers to/from other funds - - 0% - TOTAL REVENUES - 31,108.686.00 :, 20739,124.00 '17942,938;52 ..... ,2,796,185.48 FAV(UNFAV) EXPENDITURES Administrative Costs :776,720.00 517,813.33 408,975.62 79% 108.837.71 Professional Services 1{005,988.00 670,658.67 217,457.02 32% 453,201.65 6 Property Tax Administrative Fee 520,000.00; 346,666.67 502,395.00 145% (155,728.33) Cost of Inventory Sold 0% Payments to Other Governmental Agencies 9,383,200.00 6,255,466.67 811,522.86 13% 5,443,943.81 Bond Issuance Costs - 0% Bond Discount 0% 4 Interest And Fiscal Charges 10,924,886.00 7,283,257.33 4,982,809.22 68% 2,300,448.11 Principal Payments 3,100,000.00= 2,066,666.67 390,000.00 19% 1,676,666.67 0% Capital Outlay - - - 0% - Office Equipment 19,825.00; 13,216.67 8,957.74 68% 4,258.93 Undergrounding Projects '21,665.00`' 14,443.33 - 0% 14,443.33 Deep Canyon&Hwy 111 3,078.00. 2,052.00 0% 2,052.00 El Paseo Improvements '_ 2,755,000.00 1,836,666.67 - 0% 1,836,666.67 Parking Spaces 10,000,000.00, 6,666,666.67 - 0% 6,666,666.67 Fred Waring Dr. Street Improvements 5,265,000.00.: 3,510,000.00 427.539.64 12% 3,082,460.36 1-10 Cook St Interchange ;,250,060.00 250,000.00 250,000.00 100% 5 No.Sphere Infrastructure 9118,641.00 6,079,094.00 7,524,617.66 124% (1,445,523.66) RDA Projects 5,005,144.00 3,336,762.67 - - 0% 3,336,762.67 Desert Willow 5,145,729.00 3,430,486.00 39,198.97 1% 3,391,287.03 Land Purchases/Property Acquisition 4,300,000.00-' 2,866,666.67 - 0% 2,866,666.67 0% 0% 0% Transfers - - - 0% - Transfer Out Administrative Costs - - 0% - Transfer(InyOut Capital Exp Reimb (9,068.46) 0% 9,068.46 Transfer Out Low/Mod Set-Aside - 5i664,737.00 3,776,491.33 - 0% 3,776,491.33 0% TOTAL EXPENDITURES :,-73,259,613.00 ".; 48,923,075.33 15554,405.27 _ 33;368;670.06 1. Tax increment is received in Jan&May 2. Interest is received as securities mature 3. Reimbursements are posted at various times during the year. 4. 10/1 debt payments of$5M are included here 5. Includes land Purchase 6. Administrative fee taken once a year O M O 0 0 O n m N 0 0 O h 0 0 0 O O m 0 0 0 0 0 0 0 0 0 O V c a0000 o m. ¢i coo o � 0000m $ � om000 000 C! c : y H c m rn, rn M rn n o 0 0 .n� m O "�.: mOV U ~ T.; r N' N , LL N (0 M M Ol. W 1 ILN Cl! m �. Q N A F o d n n a a` a Q U 9 U N O m O O M M LL o y N e0 _ M M m m d a M <7 fV Y1 m= NN a � 00 O N N co m -. 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N C O -'N d U N O - N N c00_ O 1Lq O O ttq d d QI d �O N M t7 O r 0) � O) O -e �+ �+ M M N N C C aa rnrn i ui 000 rn Moi Oo - rO W U , M N = M m N O o co 'ad c a rn o cl O O O O a) cl O LO co wa � N O O co o v r- y c d � o 0 00 0 of -.. 0 0 0 0 0 0 0 o.o o o� d .� o00000 0 0o0.0000.0 o o y O m o o o 0 0 o o tri o:o 0 o'co o' 'o Q d mo 0 .m too0 coo m �. c (o o -c (q r 0 N m (= r tn. 3 7 'O m O 0) -c0. N O M 7 O a Ln L O. N O ;m 4) N w N:O CoO- y c d m c 0) ,ef' - r N to M 0) _ 0 m O t aD Oi Oi O M O N, N d U) N N a w c N O C d E d C ?i c N O L A � d LL LU US Q o 7 Z y U 3 C d d C E c d Z �ELcg � 4) a 5 3 c (D 5 ° > daiQO cii E a0 � a d o f o m m 3 v m 5 5 �j d y lmmy mmot- � � � Qa Oc0 2 'y ,A 0. y m d d aa+ U O C N t9 N t ICrO ~ C O O N O O '� N fC`0 t`C9 A ~ N L > F U) = 0E- aaaaammsEL C F 1' W f PALM DESERT REDEVELOPMENT AGENCY 29-Feb-00 Schedule of Revenue and Expenditures HOUSING FUND 8 yTp (FAV)UNFAV Budget Budget Actual YTD Variance REVENUES 2 Transfer in of 20% Set-Aside 51664,737.00 3,776,491.33 3,776,491.33 3lnterest 115,000.00 76,666.67 12,339.12 64,327.55 Rental Income 45,000:00 30,000.00 22,493.82 7,506.18 Sales of Property 110,018.00 ; 73,345.33 134,517.64 (61,172.31) 1 Reimbursement From Other Agencies (93,163.20) 93,163.20 2 Housing Mitigation Fees 53,000.00 35,333.33 35,333.33 Other Revenue - 578.00 (578.00, TOTAL REVENUES 5,987,755.00 3,991,836.67` 76,765:38 3915,071.29 , EXPENDITURES FAV(UNFAV) Administrative Costs 286,850.00 191,233.33 173,490.00 17,743.33 Professional Services ,195,245.00 130,163.33 67,535.54 62,627.79 Property Tax Administrative Fee Cost of Inventory Sold Interest And Fiscal Charges 2,657,982.00 1,771,988.00 1,458,302.04 313,685.96 Principal Payments 880,000M ` 880,000.00 8810,000.00 - Capital Outlay Office Equipment Acquisition Rehab/Resale#7 500,330.00 . 333,553.33 30,110.20 303,443.13 Home Improvement Program 1-6 44,067.00 62,711.33 923.13 61,788.20 Santa Rosa 568,197.00 378,798.00 61,766.77 317,031.23 4 Property Purchases 476,772.00 317,848.00 472,077.65 (154,229.65) 5 Desert Rose 183 159`.00 122,106.00 85,093.35 37,012.65 Portola Palms Mobilehome Park 200,600.00' 133,333.33 158,910.92 (25,577.59) Transfers Transfer(In)/Out Administrative Costs 100,000.00` 66,666.67 66,666.67 Transfer(In)/Out Capital Exp Reimb TOTAL EXPENDITURES 6,142;602.00 4,388,401.33 3,388,209.60 1000,191.73 Notes: 1 Includes prior year adjustment for tax increment calculation change 2 This transfer is done once a year only. 3 Interest is posted with investment maturities or dividend payments 4 Purchase of Rental property on Santa Rosa 5 Includes re-purchases and re-sales 1;­­-0.1�ll ,.,1�li.1 jljll i1,11 , 1_1-:1 ._1 ..1 .. ........ City of Palm Desert Parlcview Office Complex February-00 February-00 # % YTD YTD # % Budget Actual Variance Variance Budget Actual Variance Variance Revenues Rental $ 66,500 $ 69,394 $ Z894 104'35%[* $ 521,000 $ 499,054 $ (21,946) 95.79% Dividends/Interest $ 1,250 $ 4,935 $ 3,685 394.83% $ 10,000 $ 34,040 $ 24,040 340.40% Total Revenues $ 67,750 $ 74,329 $ 6574 109.71% . $ 531,000 $ 533,094 $ 2,094 100.39% Expenses Professional-Accounting&Auditing $ 5,800 $ 5,800 $ - 00,00% $ 46AM $ 46,400 $ - 100.00%I Professional-Consultants $ 5,500 $ 5,551 $ (51) 100.93% $ 44,000 $ 55,803 $ (11,803) 126.82% Tenant Improvements $ 3,700 $ - $ 3,700 0.00% $ 29,600 $ 3,472 $ 26,128 11.73% Repairs&Maintenance Building $ 9,100 $ 466 $ 8,634 5.12% $ 72,800 $ 44,740 $ 28,060 61.46% Repairs&Maintenance-Landscapi $ 1,079 $ - $ 1,079 0.00% $ 8,632 $ - $ 9,632 0.00% Utilities-Water $ 250 $ 95 $ 155 38.09% $ ZODO $ 697 $ 1,303 34.86% Utilities-Gas/Electric $ 4,300 $ 3,251 $ 1,049 75'61% $ 38,900 $ 34,381 $ 4,519 88.38% Utilities-Trash $ 450 $ - $ 450 0.00% $ 3,600 $ 5,471 $ (1,871) 151.97% Telephone $ 150 $ - $ ISO 0.00% $ 1,200 $ 972 $ 228 81.02% Insurance $ 521 $ - $ 521 0.00% $ 4,166 $ - $ 4,166 0.00% Total Expenses $ 30,850 $ 15,164 $ 15,686 49.15% $ 251,298 $ 191,935 $ 59,363 76.38% $ Turs $ i9:7$. 61,457-a-J21ER Equipment Replacement Reserve $ 91196 $ 9,639 $ (453) 104.93% $ 73,488 $ 67,470 $ 6,018 91.81% $ 17;7141 49,527i, t"21,813: fit 273A9L_' tnvest;2000-invest • Parkview Office Complex • `' Vacancy Rate Schedule by Suite February 2000 Suite Square No. Tenant Feet 73-710 Fred Waring Drive-Two (2) Story Building 100 Hanover (Options expires on December 31,00) 2,560 102 Bergren(May not continue lease beyond lease expirati 1,360 103 Multiple Sclerosis 488 104 Arthritis Foundation 960 106 Vacant (space is unimproved) 928 108 Senator Kelly(Lease determined by election results) 785 112 Assemblyman Battin(Lease determined by election res 1,406 114 Chamber of Commerce 1,478 118 Goodwill Industries 1,250 119 City/CVAG Conference Room 1,380 120 Golf Dimensions (Actively looking for a sub-tenant) 1,750 200 CVAG 4,292 200A Vacant(space is not available to lease) 841 201 U.S.District Court 604 203 Accounting Services . 480 80 205 Coachella Valley Economic Partnership 700 208 Desert Springs Investments 960 210 Wilson,Pesota&Pichardo 3.040 211 Alzheimer's Association 937 Investvacancy Report • Parkview Office Complex • Vacancy Rate Schedule by Suite February 2000 Suite Square No. Tenant Feet 217 Mcmillan 775 220 CA.State Dept. of Agriculture(Requested a Month to M 1,607 lease agreement-Staff report will go before council 3/9/00) 222 WMA Securities 2,981 Total square footage(2 story Building) 31,562 Vacancy Rate-1,769/31,562= 5.60% 73-720 Fred Waring Drive- One Story Building 100 State of California-Water Resources 15,233 102 State of California-Rehabilitation Department 4,396 Total Square Footage 19,629 Vacancy Rate-0.00% Overall Vacancy Rate for Both Buildings: Vacancy Rate--1,769/51,191= 3.46% Occupancy Rate-49,422/51,191 96.54% Invest:Vacmcy Report d to f� M 0) CD h CV) r In Co N •� C 0) Cn 0 Iq CM 00 a r m 00 .1- N 0> 0) COI, I,- 1,- O M 1_ 0) 0 0 N m •� co N N N N N to N m Q > t0 N M O In n N W W O Cn N CM ti G1 0 N to m O N 1l- 0) I.- N 't r t0 to CO CA d_ 00 co tD M Cl) M O M 0) _ Q M LJ6 O CD M leM CD V r O 1, r 00 00 r N l CD > CI LL d N M O co co N OD OD O O O O O C V CO M In co r V O 19T r r r 0 0 C M � O co N In A N O 00 CD •07 N ON M V 0 d d > (D O O O O 'IT O 1 O 91 CD M W O to 0) a 1` O CD o CD cc 1l- CO ti (n "a N CO V -e O O O N n O r 1n m M Cn O O 0) .�- V r 0) , O to 00 ONO r Co m M to le o k o � 00 00 t0 N CD co W to 0 N r N CD 00 to a (A In N CO 00 w M In CO CD O O n (D O M O M to QN Cn C70 t: 4r leh WM r C tf! CA 1.- n co m co = 1,` co r CO cc lv U- N n d1 'D C d d, L ayi a o l0 N 2 to LU C N c CL >. c 0 x c to m c c U w W m o :r tan c N C 3 °ts `D a�i 0O C °� y d CD Q) c a) t U = n a a aCO ° Lz tr 1.- z ) a I-- z INTEROFFICE MEMORANDUM TO: INVESTMENT COMMITTEE FROM: ANTHONY HERNANDEZ,ACCOUNTANT SUBJECT: DESERT WILLOW FEBRUARY 2000 FINANCIAL REPORT DATE: 3/14/00 CC: FILE The February 2000 investment report is not completed. We have not received the financial data from Desert Willow's accounting department. The reports will be available during the next scheduled meeting. r � s w u 4 C to Ix Vl �T p0 �O O ON a, h 01 7-i pC {q On M VNl M O 00 G �fy O OZ ^��♦1 p 'r p � G � !Ak � � � v�i N O Val O u M M M O N 0 7 0 0 tot 2 c J u C aep cn op �sr; � sa � y O s� EG; ^ O .r. O Cp M O N u '& b' W O �D V1 N d' 00 f i p U m 9 c c m. Y t >_ � A f m ro y 'a' .O. " d " "' y �. �K y > x E a m 0.1 ear + n o � u0` U3a m �a a O .ft F 'i8 ii tY 'O u w o „ `'w 4' g O N d a, o at W p a a GO F�.4 P+ W �+-�rn�" F- � a C7 MEMORANDUM To: Thomas Jeffrey FROM: David J. Erwin DATE: March 3, 2000 RE: City of Palm Desert/Trust Services Agreement I have no problem with the format of the Trust Services Agreement that you forwarded to me. I suggest that you discuss with Ken Weller the provisions dealing with insurance. Ken has some terminology that we are trying to utilize in most of our contracts. If you have questions regarding this matter, please do not hesitate to contact me. UJ -1 LJ • SECTION E • RFP NO. 00-01 : TRUST SERVICES AGREEMENT THIS TRUST SERVICES AGREEMENT (hereafter referred to as the "Agreement") is made and entered into this day of May, 2000, by and between the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Financing Authority, and the Palm Desert Housing Authority (hereafter referred to collectively as the "Municipality"), acting through the treasurer of the Municipality; and , a that is organized under the laws of the State of and authorized to conduct a trust business in the State of California, having a corporate trust office located at (hereafter referred to as the "Trustee"), acting through a managing director of the Trustee.. WITNESSTH: 1 . Employment. The Municipality does hereby contract with, retain, and employ the Trustee in the matters hereafter mentioned. 2. Term. This Agreement shall be effective for the five (5) fiscal years of: 1 July 2000 through 30 June 2001 ; 1 July 2001 through 30 June 2002; 1 July 2002 through 30 June 2003; 1 July 2003 through 30 June 2004; and 1 July 2004 through 30 June 2005. 3. Scope of Services. During the term of this Agreement, the Trustee shall perform such trust services as specified in the Municipality's Request for Proposals ("RFP") Number 00-01 , dated 4 February 2000, that is attached to this Agreement and incorporated by reference herein, and as specified in the Indentures of Trust for the Municipality's outstanding bond issues. 4. Contract Administration. The contracting officer for RFP Number 00-01 shall be: City Treasurer City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 The contracting officer shall be authorized to accept the Trustee's invoices for payment; to inspect the Trustee's records and services; and to provide other guidance as required. The contracting officer shall not be authorized to 1of8 SECTION E RFP NO. 00-01: TRUST SERVICES AGREEMENT change any of the terms and conditions of the Agreement unless the Municipality's City Council has previously authorized such changes. 5. Approval and Payment of Billing Statements. The Municipality shall make progress payments to the Trustee on the basis of services rendered. Interim billings shall cover a period of not less than one calendar month. The Trustee shall submit to the Municipality a statement of services rendered, with each corresponding billing statement. The Municipality shall pay all billing statements within thirty (30) days of receipt. If there is a dispute over the fees and/or expenses being charged by the Trustee, then the Municipality shall not be obligated to pay the disputed amount until the dispute is resolved. Both parties agree that they shall attempt to resolve such disputes promptly and informally through good faith negotiations. The Municipality shall not be obligated to pay for any expenses that the Trustee incurs in preparing or submitting a proposal in response to RFP Number 00-01, or in traveling to or attending the Pre-Proposal Conference or the finalist interviews. 6. Independent Contractor. The Trustee enters into this Agreement, and will remain throughout the term of this Agreement, as an independent contractor. The Trustee agrees that it is not and will not become an employee or agent of the Municipality while this Agreement is in effect. The Trustee agrees that it is not entitled to the rights and benefits afforded to the Municipality's employees, including disability or unemployment insurance, worker's compensation, medical insurance, sick leave, or any other employment benefits. The Trustee is responsible for providing, at its own expense, disability, and other insurance, training permits, and licenses for itself and for its employees. The Trustee is responsible for paying, when due, all income taxes, including estimated taxes, incurred as a result of the compensation paid by the Municipality to the Trustee for services rendered under this Agreement. The Trustee agrees to indemnify the Municipality for any claims, costs, losses, fees, penalties, interest, or damages suffered by the Municipality, resulting from the Trustee's failure to comply with this provision. 2 of 8 SECTION E • RFP NO. 00-01: TRUST SERVICES AGREEMENT 7. Indemnification. The Trustee agrees that the Municipality's officers, employees, and agents should, to the extent permitted by law, be fully protected from any loss; injury; damage; claim; lawsuit; cost; expense; attorneys's fees; litigation costs; defense costs; court costs; or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the parties to be interpreted and construed to provide the fullest protection possible under the law to the Municipality. The Trustee acknowledges that the Municipality would not enter into this Agreement in the absence of the commitment of the Trustee to indemnify and protect the Municipality as set forth here. To the full extent permitted by law, the Trustee shall defend, indemnify, and hold harmless the Municipality, its employees, agents, and officials, from any liability; claims; suits; actions; arbitration proceedings; administrative proceedings; regulatory proceedings; losses, expenses, or costs of any kind, whether actual, alleged, or threatened; actual attorney fees incurred by the Municipality; court costs; interest defense costs, including expert witness fees; and any other costs or expenses of any kind whatsoever without restriction or limitation incurred in relation to, as a consequence of or arising out of or in any way attributable actually, allegedly, or impliedly, in whole or in part, to the performance of this Agreement. All obligations under this provision are to be paid by the Trustee as they are incurred by the Municipality. 8. Insurance. The Trustee covenants that it currently has and will maintain in effect during the performance of any duties under this Agreement, the following insurance coverages: a. Financial Institution Bond. The Trustee shall maintain a Financial Institution Bond (primary) with a policy limit of no less than One Hundred Million Dollars ($100,000,000.00). The Trustee shall supplement this Bond with excess securities insurance (over primary) with a policy limit of no less than Two Hundred Million Dollars ($200,000,000.00) The Financial Institution Bond and the excess securities insurance shall cover dishonesty; forgery or alteration of written instruments; counterfeit currency; and loss or destruction of cash and securities, by the Trustee's officers, employees, or agents. 3 of 8 SECTION E RFP NO. 00-01: TRUST SERVICES AGREEMENT b. Professional Liability (Errors and Omissions). The Trustee shall have Professional Liability insurance with a policy limit of no less than Seventy-Five Million Dollars ($75,000,000.00). This insurance shall cover willful or negligent acts or omissions of the Trustee's officers, employees, or agents. { P The Trustee further agrees to indemnify and hold the Municipality free and harmless from any and all claims arising from any such dishonesty; forgery or alteration of written instruments; counterfeit currency; loss or destruction of cash and securities;_and negligent.act(s) or omission(s), by the Trustee's officers, employees, or agents. 9. Licenses. The Trustee warrants that it has completed, obtained, and performed all registrations, filings, approvals, authorizations, consents, or examinations that are required by federal or state authorities for acts contemplated under this Agreement. 10. Ethical Conduct. The Trustee agrees to inform the Municipality of all of the Trustee's interests, if any, that are or that the Trustee believes to be, incompatible with the Municipality's interests. Neither the Trustee nor its employees or agents shall offer gifts, gratuities, favors, or entertainment, directly or indirectly, to any of the Municipality's current employees, Finance Committee members, or City Council members. 11. Assignment. The Trustee shall not assign any of the duties or obligations of this Agreement without the Municipality's prior written consent: provided, however, that claims for money due or to become due to the Trustee from the Municipality under this contract may be assigned without such approval. The Trustee shall promptly provide notice to the Municipality of any such assignment of money. 12. Inspection of Records. The Trustee shall make its working papers, memoranda, records, and all other documents (hereafter referred to collectively as "Information") on the Municipality available, and shall respond to all reasonable inquiries from successor trustees and from others to review this Information if: (1) it has received the Municipality's prior written consent; or (2) such disclosure is required by law or by regulation. The Trustee shall retain all Information pertaining to the Municipality, at the Trustee's expense, for a minimum period of three (3) years after the final payment under this Agreement. 4 of.8 • SECTION E • RFP NO. 00-01: TRUST SERVICES AGREEMENT The Municipality's treasurer shall have the right, exercisable directly or indirectly through the Municipality's external auditor, to examine and audit securities and cash that the Trustee holds for the Municipality, and any related records, during the Trustee's normal business hours, without notice. 13. Right to Acquire Services. Nothing in this Agreement shall prohibit the Municipality from acquiring equivalent services from other sources, when deemed by the Municipality to be in its best interest. 14. . , Confidentiality. All financial, statistical, personal, and technical data and other information that relates to the Municipality's operations; that the Municipality designates as being confidential; and that the Municipality makes available to the Trustee in order to carry out this Agreement, shall be PY rotected b the Trustee from unauthorized use and disclosure, provided that such protection is not in conflict with applicable federal and state laws and regulations. 15. Nonconforming Services. If any services performed hereunder are not in conformity with the specifications and requirements of this Agreement, then the Municipality shall have the right to require the Trustee to perform the services in conformity with said specifications and requirements at no additional cost to the Municipality. If the Trustee fails to perform the services promptly or to take the necessary steps to ensure future performance of the service in conformity with the specifications and requirements of this Agreement, then the Municipality shall have the right either to: (1) have the services performed, by contract or otherwise, in conformity with the specifications, and to charge to the Trustee any cost incurred by the Municipality that is directly related to the performance of such services; or (2) terminate this contract for default as provided for in the termination clause. 16. Termination of Contract. This Agreement may be terminated at any time, with or without cause, either by the Municipality or by the Trustee, -provided that the party terminating this Agreement provides at least ninety (90) days's written notice to the other party by certified mail or by personal delivery. If so terminated, the Trustee shall be entitled to compensation for services requested and actually performed up to the date of contract termination. 5 of 8 • SECTION E • RFP NO. 00-01: TRUST SERVICES AGREEMENT 17. Termination on Occurrence of Stated Events. Termination of this Agreement shall take place upon the bankruptcy or insolvency of either party; material breach by either party; or assignment without the consent of either party. 18. Unauthorized Contact. If, during the proposal process, the Trustee had unauthorized contact with any of the Municipality's current employees, Finance Committee members, or City Council members other than the Municipality's treasurer or investment manager, regarding RFP Number 00- 01 , then this Agreement shall be deemed to be null and void, and the Municipality shall not be obligated to.pay for any expenses that the Trustee has incurred in connection with this RFP. 19. Undisclosed Relationships. If, during the proposal process, the Trustee failed to disclose any business or financial relationships with the Municipality or with any of the Municipality's current employees, Finance Committee members, or City Council members over the prior five (5) years, then this Agreement shall be deemed to be null and void, and the Municipality shall not be obligated to pay for any expenses that the Municipality has incurred in connection with this RFP. 20. Other Applicable Agreements. The following documents shall be incorporated by reference into this Agreement: a. City of Palm Desert Request for Proposals Number 00-01 , dated 4 February 2000. b. response to RFP Number 00-01 , dated 21 . Entire Agreement. This Agreement (including the agreements and documents incorporated by reference herewith and in Article 20) supersedes any and all other agreements, either oral or written, between the Municipality and the Trustee with respect to the tendering of services by the Trustee to the Municipality. This Agreement contains all of the representations, covenants, and agreements between the parties with respect to the renderingof those services, and each art to this Agreement acknowledges party 9 that no representations, inducements, promises, or agreements have been made by or on behalf of any party except those covenants and agreements embodied in this Agreement. No agreements, statements, or promises not contained in this Agreement shall be valid or binding. In the event of a 6 of 8 • SECTION E • RFP NO. 00-01: TRUST SERVICES AGREEMENT conflict between this Agreement and the items listed in Article 20, then this Agreement shall be controlling. 22. Amendment. This Agreement may be modified or amended only with the signed and written consent of both parties. t r 23. Severability. Should any part of this Agreement be held to be invalid, void, or unenforceable by a court of competent jurisdiction, then the remainder of the Agreement shall continue in full force and effect without being invalidated in any way by either party. The remainder of the Agreement shall be considered as the whole Agreement and shall be binding upon the contracting parties. 24. Notices. All notices required or permitted under this Agreement by either party, shall be in writing and shall be deemed delivered when delivered in person, or deposited in the United States mail, postage prepaid, and addressed as follows: City Treasurer City of Palm Desert 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx Each party may change its address by giving written notice in accordance with this Article. Notices delivered personally shall be deemed communicated as of actual receipt. Mailed notices shall be deemed communicated as of the day of receipt or the fifth day after mailing, whichever occurs first. 25. Governing Law. This Agreement shall be governed by and construed in accordance with the laws and the implementing regulations of the State of California. Any ambiguities contained herein shall be construed in a manner consistent with such laws or regulations. The validity of this Agreement and of any of its terms and provisions, as well as the rights and duties of the parties under this Agreement, shall be construed pursuant to and in 7 of 8 • SECTION E • RFP NO. 00-01: TRUST SERVICES AGREEMENT accordance with the laws of the State of California on the date of this Agreement. 26. Duplicate Originals. This Agreement is being executed in two (2) duplicate originals, each of which together shall constitute one and the same instrument. The Municipality shall retain one (1 ) duplicate original and the Trustee shall retain one (1) duplicate original. Have read, understood, and agreed to all of the terms and conditions set forth herein,_we.affix our signatures below:_ . On behalf of the City of Palm Desert, the Palm Desert Redevelopment Agency, the Palm Desert Financing Authority, and the Palm Desert Housing Authority: Signed: Paul S. Gibson City Treasurer On behalf of xxxxxxxxxxxxxxxxxxxxxxxxx: Signed: xxxxxxxxxxxxxxxxxx Managing Director 8 of 8 § « o z § 2LU ƒ u § < m < 7 § $ q c & ƒ ) 2 62R2777 ) ) _ $ 2 { } / / $ _ n E CCCDN\l ® cE ( § i < o < § § ± 2 § = 0Aa 0 / ) o / Z ZC\j ; \ 3 ] ± / _ & » o - # $ _ ] / , Co \& ) $ C) \ o § i \ § / § > & to \ ) z % § f � co) ° � a) o @ _ | Cl)69 (L a � LL ® ) 2 7 / ( ) Cl) ° � 22222 � 0 w § ^ ) \ $ > ° � § � Z \ a ) co z a LL 0 k k ` £ ) 0z ) m of § § = § 7 > 5 3 $ I0 % e ) a % B » ° ° j / 7 ) u § U) A6C co G ) ] \ ( \ f ) & m ) « @ ; ) ) \ / k \ ) \ 3 ) - - 3a _ > � : 7 ] . 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Q Q OM m C d o o Cl) L LO 7 0 U N ( N c y o o r 0 0 o V 3 � N — N O — W C } m ` } Z Z } N Z Z Z F- Z o 'er Nam — m LL r- m Z Z N Q ao Z Y o a co D 0O x m F .O-. x L O om Lf) L _ a- W � 6A a Z p nNU a) tm N O N eO O OZC � V ` \ ?: OO >: Z Z } ce) ZZZ ZOOZ � N � O O Q ZC C (0 69 N Q CL 2 m � N m a c m m LL p O m J G N N y c N LL G N 'c y m o a o ° a c Q. y ° o c Q m ; y o C m m coy c °3n `° tea LLcycm 03 Co z � ° 00 = Co z o Q y E -Com rj) c- .. WN cu = Ny co coco co Nm � p' y N O) O N ai CON +7 c o p 0 N 11 N UO � a ac = � Uoo EQ>i °° occ0 00 �c LL r- o ` y ` m ° mcpi It m m m LL` co � M c a a a c y m c U. m m Q a y y o o ; � o 0Co mmcpic = > > 0 � N :y � � Eoo .0aa .� � � � � �iiiwm � _ � cai � p �i w ¢ c°� 0zz° aa' a City of Palm Desert Internal Correspondence Date: 14 March 2000 Subject: Interviews with Prospective Successor Trustees From: Paul S. Gibson, City Treasurer '✓W i To: Members of the Finance Committee t Enclosed please find the following: ➢ A letter from Chase Manhattan indicating its decision not to bid. ➢ A table comparing the Price Proposals that prospective successor trustees have submitted. ➢ A table comparing the terms of the Technical Proposals that prospective successor trustees have submitted (with gray shading to highlight key areas of concern). ➢ The Price Proposals and Technical Proposals (Trust Services Questionnaire) that all prospective successor trustees have submitted. it Prospective successor trustees that submitted bids were: ➢ Bank of New York ➢ Union Bank of California ➢ U.S. Trust Company ➢ State Street Bank ➢ Wells Fargo Bank Chase Manhattan Bank declined to bid since it sold its Dutch Auction Securities business last year, and the City's Request For Proposals (RFP) specifies that the successor trustee must administer Dutch Auction Securities. Deutsche Bank (Bankers Trust) failed to bid because it mistakenly believed that the City would only seriously entertain bids from California-based commercial banks. Interviews with Prospective Successor Trustees 14 March 2000 Page 2 of 2 Recommendations Based upon a comparative analysis of fees and technical proposals, I recommend that the City interview the following prospective successor trustees: ➢ Bank of New York ➢ Union Bank of California ➢ U.S. Trust Company - ➢ State Street Bank Wells Fargo is omitted from the interview list due to continuing business concerns. Pre-merger Wells Fargo sold its trust business to Bank of New York in 1997. The current "Wells Fargo" applicant is an untested Norwest start-up marketing in California under the Wells Fargo name. If it fails to develop a sufficient book of business, then Wells Fargo may decide to sell its trust business again. Enclosures: (1 ) Chase Manhattan Letter (2) Comparison of Price Proposals by Unit Cost (3) Comparison of Technical Proposals (4) Bank of New York Bid (5) Union Bank of California Bid (6) U.S. Trust Company Bid (7) State Street Bank Bid (8) Wells Fargo Bank Bid L � Q Q � Q N o � n L o +� o P m x O W O L W m E • � � �o t _ N ca ^ Cl E J ^^,, — W ° • • '^ Q N J co (uCL - 0 88 E � v N � N G E S fL0 a o -0 Q w E n Q 'a ? o CD • :3 cuCU m � . //�� N c S Q i� 1 N t W sa O Et 1 L ■ Q a ,S 2 W Y Gl N C Y Y X G N N C 2 N W G N N } m U O ~ O N ? Co x d N " N Z r V— = V 7 m ii F 7 Y Y N N 3 Z p C o �- E 03 �a OPCHASE Chase Manhattan Bank and Trust Company, N.A. Susan M.Minnehan 101 California Street,Suite 2725 Vice President San Francisco,CA94111-5830 Tel 415-954-9580 Fax415-693-8850 susan.minnehan@chase.com I March 2, 2000 Mr. Thomas Jeffrey Investment Manager City of Palm Desert Palm Desert City Hall 73-510 Fred Waring Drive Palm Desert, CA 92260-2578 Re: Request for Proposal Dear Mr. Jeffrey: Thank you for giving Chase Manhattan Bank and Trust Company the opportunity to provide a proposal with respect to furnishing trust services for the City. We have reviewed the request and are not able to provide administration services for Dutch Auction Securities as Chase sold its business last year. Due to the fact that we would not be able to certify that we can provide all the "required services"we must decline to bid on your successor business. Thank you again for the opportunity. We at Chase recognize the need for a knowledgeable and experienced trust agent to deliver accurate and timely processing. As an established r L provider of trust services, we would welcome the opportunity to bring our experience and capabilities to you in the future. Respectfully Yours, n Susan Minnehan Vice President Solutions to Investors and Issuers Worldwide" Successor Trustee Services for City of Palm Desert March 3, 2000 BNY Western Trust Company Jose Matamoros Vice President (213) 630-6.157 JBSWI kIRIOF TILE B,I.\'K OF\EN'YOW(COMPANY.INC. • � SECTION C RFP NO. 00-01: FEE PROPOSAL ESTIMATED TOTAL DIRECT SERVICES ANNUAL VOLUME UNIT PRICE FEE PRICE Acceptance Fees Conversion 13 $ 100.00 $ 1,300.00 Counsel Fees Conversion 0 $0 $Waived Trustee Fees 7 $ 1,975.00 $ 13,825.00 Fiscal Aclent Fees 3 $ 1,700.00 $ 5,100.00 Paying Agent Fees 0 $0 $Waived Registrar Fees 0 $ 0 $Waived Transfer Agent Fees 0 $ 0 $Waived Defeasance Escrow Agent Fees 3 $ 400.00 $ 1,200.00 Depository Agent Fees 0 $0 $Waived Tender Agent Fees 0 $0 $ 0 Letter of Credit Draw Changes 0 $0 $ 0 Bondholder Account Maint. Charges 0 $ 0 $Waived Wire Transfer Charges 0 $ 0 $Waived Redemption Changes 0 $ 0 $ Waived Security Trade Charges 96* $ 35.00 $ 3,360.00 Collateral Maintenance Charges 0 $0 $Waived Out-of-Pocket Charges $20,125.00 $6 %of billed fees $ 1,207.50 Itemize All Other Expenses Below: Requisition/Disbursement 96" $ 35.00 $ 3,360.00 TOTAL ANNUAL FEES $ $29,352.50 *Security Trade charges in excess of eight per bond issue will be waived. The maximum security trade charge per issue is$280.00 •• Requisition/Disbursement charges in excess of eight per bond will be waived. The maximum disbursement charge per issue is$280.00 Please note that the respective total annual charges for security trades and requisition/disbursements in the amount of $3,360.00 are most likely overstated. Some bond issues may have more than eight security trades and eight requisition charges while others may have less. The 96 security trade charges and%requisition charges assume that all security trade and requisition/disbursement charges are spread evenly among 13 bond issues. City of Palm Desert SUCCESSOR TRUSTEE SERVICES FEE SCHEDULE ❑ Palm Desert Redevelopment Agency 1995 Series Tax Allocation Revenue Bonds (Project Area No. 1) ❑ Palm Desert Redevelopment Agency 1995 Series Tax Allocation Revenue Bond! (Project Area No. 2) ❑ Palm Desert Redevelopment Agency 1995 Series Tax Allocation Revenue Bonds (Project Area No. 1 As Amended) _ ❑ Palm Desert Redevelopment Agency 1995 Series A—Tax Allocation Revenue Refunding Bonds ❑ Palm Desert Redevelopment Agency 1996 Tax Allocation Revenue Refunding Bonds ❑ Palm Desert Redevelopment Agency 1998 Tax Allocation (Housing Set-Aside) Revenue Bonds ❑ Palm Desert Redevelopment Agency 1998 Tax Allocation Revenue Bonds (Project Area No. 4) ❑ Palm Desert Redevelopment Agency 1997 Tax Allocation Refunding Revenue Bonds (Fully Escrowed) ❑ City of Palm Desert 1995 Revenue Bonds (1915 Special Improvements Act) (Fully Escrowed) ACCEPTANCE FEE/ per issue $100.00 This one time charge is payable at the time of the transfer and includes the review and execution of the Trust Indenture and all documents submitted in support thereof, acceptance of the trust, and attendance by the administrator at the pre-closing and closing, if necessary. ANNUAL ADMINISTRATION FEE / per issue $1,975.00 This fee is paid in advance for said period, or any portion thereof that any Bonds are outstanding. ANNUAL ESCROW AGENT FEE $400.00 This fee paid in advance, covers the normal administrative functions of the escrow agent. Y' INVESTMENT CHARGE/per transaction $ 35.00 Investment charges in excess of 8 transactions will be waived. The maximum investment charge per issue is $280.00. Transaction fees include the settlement, upon purchase, sale or maturity of trust funds invested under the terms of the Trust Indenture. REQUISITION/DISBURSEMENT FEE (check or wire) /per transaction $35.00 Requisition/Disbursement Fee charges in excess of 8 transactions will be waived. Tht maximum disbursement fee charge per issue is $280.00. TERMINATION FEE $250.00 LETTER OF CREDIT OR INVESTMENT AGREEMENT DRAWS/per draw $50.00 Investment agreement draw fees include the settlement, upon purchase, sale or maturity of trust funds invested under the terms of any investment agreement. Letter of Credit draw fees cover the preparation of required documentation for each individual draw under any letter of credit. ANNUAL OUT-OF-POCKET EXPENSES 6 % of Billed Fees Out-of-pocket expenses including, but not limited to, stationery, postage, telephone, and retention of records will be billed annually in an amount equal to 6 % of all fees billed for the year. Express mail, Federal Express and outside messenger services will be billed to the account at actual cost and are not covered by the 6 % expense charge. MISCELLANEOUS SERVICES Out-of-pocket expenses of administrator to attend closings or special meetings, outside counsel, accountants, special agents, etc. will be charged at the actual cost incurred. The charges for performing services not contemplated at the time of execution of the Trust Indenture or not specifically covered elsewhere in the Schedule will be commensurate with the service. These extraordinary services include, but are not limited to: supplemental agreements; consent operations; unusual releases or sinking fund redemptions; the preparation of special or interim reports which the Trustee must submit to security holders; custody of collateral which is diversified, voluminous in bulk or which involves the Trustee in more than the usual activity. TERMS OF PROPOSAL Final acceptance of the appointment as Trustee under the Trust Indenture is subject to the full review of all documentation related hereto and acceptance by our trust committee. Trustee fees and the estimated counsel fees may be increased if all documentation required for this financing is not in substantially good order, an inordinate number of drafts are required, or the closing is unduly delayed. Please note that if this transaction does not close, you will be responsible for paying any expenses incurred including counsel fees for this transaction. This offer may be deemed terminated by us if we do not enter into a written agreement within three months from the date of transmittal. Fees may be subject to adjustment for the life of the issue. City of Palm Desert SUCCESSOR FISCAL AGENCY SERVICES FEE SCHEDULE ❑ City of Palm Desert Assessment District No. 94-2 (1915 Special Improvements Act) ❑ City of Palm Desert Assessment District No. 94-3 (1915 Special Improvements Act) ❑ City of Palm Desert Assessment District No. 98-1 (1915 Special Improvements Act) ❑ City of Palm Desert 1997 Revenue Bonds (1915 Special Improvements Act& 1982 Mello-Roos Community.Facilities Act) (Fully Escrowed) ACCEPTANCE FEE /per issue $100.00 This one time charge is payable at the time of the transfer and includes the review and execution of the Agreement and all documents submitted in support thereof, acceptance of the fiscal agency, and attendance by the administrator at the pre-closing and closing, if necessary. Based upon the transaction as described, we do not anticipate the need to hire outside counsel but reserve the right to employ counsel and bill at cost if deemed appropriate or required. ANNUAL ADMINISTRATION FEE/per issue $1,700.00 This fee is paid in advance for said period, or any portion thereof that any Bonds are outstanding. ANNUAL ESCROW AGENT FEE $400.00 This fee paid in advance, covers the normal administrative functions of the escrow agent. INVESTMENT CHARGE/per transaction $ 35.00 Investment charges in excess of 8 transactions will be waived. The maximum investment charge per issue is $280.00: Transaction fees include the settlement, upon purchase, sale or maturity of trust funds invested under the terms of the Trust Indenture. REQUISITION /DISBURSEMENT FEE (check or wire) /per transaction $35.00 Requisition/Disbursement Fee charges in excess of 8 transactions will be waived. The maximum disbursement fee charge per issue is $280.00. TERMINATION FEE $250.00 LETTER OF CREDIT OR INVESTMENT AGREEMENT DRAWS/per draw $50.00 Investment agreement draw fees include the settlement, upon purchase, sale or maturity of trust funds invested under the terms of any investment agreement. Letter of Credit draw fees cover the preparation of required documentation for each individual draw under any letter of credit. ANNUAL OUT-OF-POCKET EXPENSES 6 % of Billed Fees Out-of-pocket expenses including, but not limited to, stationery, postage, telephone, and' retention of records will be billed annually in an amount equal to 6 % of all fees billed for the year. Express mail, Federal Express and outside messenger services will be billed to the account at actual cost and are not covered by the 6%expense charge. MISCELLANEOUS SERVICES Out-of-pocket expenses of administrator to attend closings or special meetings, outside counsel, accountants, special agents, etc. will be charged at the actual cost incurred. The charges for performing services not contemplated at the time of execution of the Agreement or not specifically covered elsewhere in the Schedule will be commensurate with the service. These extraordinary services include, but are not limited to: supplemental agreements; consent operations; unusual releases or sinking fund redemptions; the preparation of special or interim reports which the Agent must submit to security holders; custody of collateral which is diversified, voluminous in bulk or which involves the Agent in more than the usual activity. TERMS OF PROPOSAL Final acceptance of the appointment as Fiscal Agent under the Agreement is subject to the full review of all documentation related hereto and acceptance by our trust committee. Fiscal Agent fees and the estimated counsel fees may be increased if all documentation required for this financing is not in substantially good order, an inordinate number of drafts are required, or the closing is unduly delayed. Please note that if this transaction does not close, you will be responsible for paying any expenses incurred including counsel fees for this transaction. This offer may be deemed terminated by us if we do not enter into a written agreement within three months from the date of transmittal. Fees may be subject to adjustment during the life of the issue. Fees may be subject to adjustment for the life of the issue. SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE 1. Firm Name: BNY Western Trust Company 2. Contact Address: 700 South Flower Street, Suite 500 P Los Angeles, CA 90017-4104 3. Contact Personnel: Account Representative Supervising Manager Name: Alicia Roeschlein Name: Todd Duncan Title: Trust Officer Title: Vice President & Deputy Director TEL: (213) 630-6237 TEL: (213) 630-6430 TEL: (800) 358-0963 TEL: (800) 358-0963 FAX: (213) 630-6215 FAX: (213) 630-6285 4. Please provide resumes for the account representative, the supervising manager, and any other employees who would be assigned to the Municipality's account. Please identify the current average trust client caseload for each employee. Mike Klugman Director, Trust Services (213) 630-6233 Mike Klugman is currently Director of Trust Services for BNY Western Trust Company and BNY Trust Company of Missouri, subsidiaries of The Bank of New York, a leading provider of Corporate Trust Services throughout the United States and internationally. The trust companies offer a variety of fiduciary and agency services for debt financings, with special emphasis on complete trust services for cities, counties and public entities located in the Western and mid-Western United States that issue debt in the domestic, international and private securities markets. Mike has over 30 years experience in the Trust field and has received a Certified Corporate Trust Specialist designation from the Institute of Certified Bankers. Previously, Mike held similar managerial positions with Wells Fargo Bank and First SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE Interstate Bank of California. Prior to joining First Interstate, Mike was employed by Bankers Trust Company holding a number of managerial positions in the Administration, Operations and Marketing Groups, both domestically and internationally. Mike is a member of the Technical Advisory Committee of the California Debt and Investment Advisory Commission and is associated with a number of municipa organizations. He was also the former Chairperson of the CUSIP Agency Board o Trustees for the American Bankers Association. Mike received a BS in Industrial and Labor Relations from Cornell University and an MBA in Banking and Finance from New York University. Todd H. Duncan Vice President & Deputy Director (213) 630-6430 Todd Duncan, Vice President and Deputy Director, is responsible for all Corporate Trust Administration for the California Region. He has been in the corporate trust field in both managerial and administrative capacities for over seventeen years in both Los Angeles and San Francisco and is experienced in all types of debt financings. He has completed both the Bachelor of Business Administration undergraduate and Master of Science graduate programs at Wichita State University emphasizing in Economics and Finance. Alicia Roeschlein Trust Officer, Primary Administrator (213) 630-6237 aroeschlein,nbankofm.corn Alicia has over eight years in trust and banking experience. Her prior experience involved the administration and management of mortgage and asset-backed securities. Alicia has a highly knowledgeable background in Municipal and Corporate Servies with exceptional client relationship skills. She is experienced in the administration of a wide variety of municipal and corporate trust accounts including Tax Allocation, Assessment District, Single and Multifamily Housing, Certificates of Participation, Mortgage Backed and Revenue Bonds. Alicia is responsible for the administration of several of the Bank's high profile accounts which include Southern California Public Power Authority, County of Orange and City of Long Beach. Alicia holds a Bachelor of Arts degree in Communications from California State University at Long Beach. SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE Alicia currently administers a portfolio of 76 issues. Allen Taylor Trust Officer, Back-Up Administrator (213) 630-6240 atavl orn.bankofnv.com Allen has been with the Bank for 2 % years. Prior to joining the Bank, Allen gained his experience while working for another institution where he provided corporate and municipal trust and banking services. . Allen, a native of Australia, completed his certification in portfolio management before coming to America to pursue his career in providing financial and securities processing services. Allen currently administers a portfolio of 85 issues. Fe R. Tuzon Operations Administrator (213) 630 6238 ftuzon,u:banko fm.com Fe Tuzon recently.joined BNY Western Trust Company's Los Angeles office. Fe brings 13 years of securities industry experience. Early in her career, Fe worked in Corporate Trust Operations for 10 Years. For the last 3 years, Fe administered a portfolio of 90 accounts while employed at another Bank. Fe's full time duties at BNY Western Trust Company are to support 3 administrators. She holds a degree in Business Administration from Divine World College, Philippines. As an Operations Administrator, Fe's duty is to assist 3 administrators and is not responsible for the administration of any accounts. SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE Eladia Burgos Vice President& Team Leader (213) 630-6231 eburaos(a)bankofnv.com Eladia Burgos is a Vice President with over 16 years experience in Corporate an4 Municipal Trust Administration. She is knowledgeable in the servicing, administration and management of municipal and corporate debt issues including hospitals, residential housing, educational and conduit financings. She holds an Associate Degree in Secretarial Science from St. John's College, Belize. Eladia currently administers a portfolio of 69 issues. 5. Please provide five references from California cities that have an established relationship with the account representative who is listed in Question 3. Indicate: (a) name of city; (b) contact person; (c) address; (d) telephone number; and (e) length of relationship. ❑ Mr. Jose Gomez Director of Finance City of Paramount 16400 Colorado Avenue Paramount, CA 90723 (562) 220-2022 ❑ Ms. Joya De Foor City Treasurer City of Long Beach Civic Center Plaza 333 West Ocean Blvd. Long Beach, CA 90802 562-570-6845 ❑ Ms. Jane Hootman Senior Analyst County of Orange County Executive Office 10 Civic Center Plaza 3rd Floor Santa Ana, CA 92701-4062 (714) 834-2436 SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE ❑ Mr. Graham Mitchell Senior Management Analyst City of Moorpark 799 Moorpark Avenue Moorpark, CA 93021 (805) 529-6864 ❑ Ms. Therese Savery Investment Manager Southern California Public Power Authority 111 North Hope Street Los Angeles, CA 90051 (213) 367-4670 6. Please provide two references from California cities that no longer have a relationship with your firm. Indicate: (a) name of city; (b) contact person; (c) address; (d) telephone number; and (e) length of relationship. Please explain why your firm no longer manages these accounts. As the leading provider of corporate and municipal trust services, The Bank of New York is committed to the corporate trust business. We have readily filled the gap left in the industry by resigning trustees. During the last five years alone, the Bank has acquired 29 corporate trust businesses. The fact that we have retained 98% of the debt issuers who became clients through these acquisitions attests to their satisfaction with our services. To my knowledge, I am unaware of any existing clients removing BNY Western Trust Company due to service complaints. 7. Please identify the number of professionals and support staff that your firm has in the corporate trust office that would serve the Municipality. BNY Western Trust Company has over 100 professionals dedicated to municipal trust in Los Angeles, San Francisco and Seattle. BNY Western Trust Company will dedicate four professionals to administer the City's portfolio. Alicia Roeschlein (Primary Administrator) — Alicia would be the City's main account contact. She would be responsible for all aspects of Corporate Trust Administration. Her responsibilities would include the initial setup and transfer of accounts; review of all legal documents; closing new bond issues; receipts, transfers, investments and disbursements of all redemptions; maintenance of compliance items as required under the governing documents. SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE Fe Tuzon (Operations Administrator) - Fe would be the City's secondary contact. Fe will work hand-in-hand with Alicia Roeschlein. Fe's duties include assisting Alicia with; the transfer of accounts; preparing the bank's Account Synoptics after each closing; arranging for and/or inputting receipts, transfers, investments and disbursements of trust funds; assisting with account related correspondence and compliance. Allen Taylor (Back-up Administrator) —Allen would step-in to assist the City in Alicia's absence (primary contact) and if Fe (Operations Administrator) were temporarily unavailable. Allen would be familiar with the Department's accounts and can perform all duties of the Primary Administrator. Eladia Burgos (Team Leader) — Eladia would be responsible for the supervision of Alicia, Fe and Allen. Eladia's duties include: annual account reviews for the City accounts; ensuring all of the City's compliance ticklers are completed on. a timely basis; ensuring constant investment of the Municipality's funds. 8. How many of the employees in Question 7 devote a majority (>50%) of their time to municipal debt administration? All of the employee's in Question 7 (Alicia, Fe, Allen and Eladia) devote 100% of their time to municipal debt administration. 9. What percentage of time does the account representative whom is listed in Question 3, devote to municipal debt administration? . Alicia Roeschlein devotes 100% percent of her time to municipal debt administration. 10. What is your firm's fiduciary classification? (check all that apply) ❑ Bank - National Association ❑ Trust Company - National ® Bank— State Association ❑ Trust Company — State ❑ Affiliate of Investment Bank ❑ Limited Purpose Trust Company ❑ Affiliate of Foreign Bank ❑ Affiliate or Subsidiary of a Bank Holding Company ❑ Joint Venture with Another ❑ Other (describe) Firm (describe) SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE 11. Please describe your firm's ownership structure. If your firm is owned by a parent bank holding company or corporation, then please identify that entity's name; its net capitalization, and where it is headquartered (city and state). BNY Western Trust Company is a subsidiary of The Bank of New York. Ou� parent company, The Bank of New York is headquartered in New York, New York. The net capitalization of The Bank of New York is $74,000,000,000. 12. Where is your firm headquartered (city and state)? BNY Western Trust Company is a State of California Banking Corporation headquartered in Los Angeles, California. 13. Based upon currently available information, is your firm a possible merger or acquisition candidate? (check one) ❑ Yes ® No If"yes", please discuss and identify the possible merger partner or acquiring organization. 14. What federal or state agency supervises or examines your firm? The State of California Department of Financial Institutions and the FDIC are responsible for examining BNY Western Trust Company. 15. What is the total amount of your firm's combined capital (exclusive of borrowed capital) and surplus as of 31 December 1999? BNY Western Trust Company's combined capital and surplus as of 12/31/99 is $216,884,011. 16. What is your firm's Tier 1 capital ratio (to risk-adjusted assets) as of 31 December 1999? BNY Western Trust Company's Tier 1 capital ratio (to risk-adjusted assets) as of 31 December 1999 is 2.31. SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE 17. What is the total amount of outstanding municipal bond principal for which your firm provides corporate trust services? The outstanding government and non-government principal amount outstandin for The Bank of New York is $700,000,000,000. The municipal bond principal fol BNY Western Trust Company is $65,000,000,000. 18. Does your firm have a corporate trust office that is physically located within the State of California? (check one) ® Yes ❑ No If"yes", please identify the location, the business hours, and how long your,firm has been providing corporate trust services in California. BNY Western Trust Company BNY Western Trust Company 700 South Flower Street 550 Kearny Street, Suite 600 Suite 500 San Francisco, CA 94108 Los Angeles, CA 90017 BNY Western Trust Company has been providing corporate trust services in California for 12 years. BNY Western Trust Company's business hours are Monday through Friday 8:OOAM to 5:00 PM PST. 19. Is your firm's corporate trust administration centralized at one physical location? (check one) ® Yes ❑ No If"yes", please identify the city and state. BNY Western Trust Company's corporate trust administration is centralized in Los Angeles, California with satellite offices in San Francisco, California and Seattle, Washington. 20. Does your firm own a securities clearing operation or does it subcontract that responsibility to another firm? (check one) ® Own ❑ Subcontract If"subcontract", please identify the subcontractor and how long your firm has done business with the subcontractor. • SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE 21. Where is the securities clearing operation located (city and state)? What is the time zone? What are the "cut-off" times for "cash" trades, corporate securities, Treasuries, Agencies, and bankers's acceptances? The securities clearing operation for The Bank of New York is located in New York, New York and is on Eastern Standard Time. The Bank of New York ha� two deadlines for securities settlement. Deadlines for settlements initiated by independent broker/dealers through The Bank of New York's settlement desk. All deadlines are Pacific Standard Time. T - Bills 9:00 AM Certificates of Deposit 8:30 AM T-Notes 9:00 AM Commercial Paper 8:30 AM T-Strips 9:00 AM Corporate MTN or Bonds 8:30 AM BA 12:00 PM Mortgage Backed Securities 8:30 AM Repos 8:30 AM Agencies 9:00 AM Deadlines for settlements initiated by the City of Palm Desert's broker/dealers. All deadlines are Pacific Standard Time. T - Bills 11 :00 AM Certificates of Deposit 11 :00 AM T-Notes 11 :00 AM Commercial Paper 8:30 AM T-Strips 11 :00 AM Corporate MTN or Bonds 11 :00 AM BA 12:00 PM Mortgage Backed Securities 11 :00 AM Repos 11 :00 AM Agencies 11 :00 AM As the worlds largest custodian, The Bank of New York is flexible and will undertake what ever action is necessary to settle the Municipality's securities. 22. Which of the following investment instruments is your firm capable of clearing? (check appropriate choices) ® T-Bills ® Certificates of Deposit ® T-Notes ® Commercial Paper ® T-Strips ® Corporate MTNs and Bonds ® Bankers's Acceptances ® Mortgage-Backed Securities ® Repurchase Agreements ® Agencies (specify) • SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE 23. Please describe your firm's policy regarding failed transactions and its method of compensating customers in the event that your firm is at fault Please provide a description of the compensation formula and the methodology that is used to calculate compensation. BNY Western Trust Company's policy regarding failed transactions is to make th4 Municipality whole based on the rate associated with the security that failed. The compensation formula for the failed trades is: (Principal X Rate / 365 X Number of days security failed). 24. How many and what percentage or your securities transactions failed last month? During the last 12 months? As the world's largest custodian, The Bank of New York settled over 900,000 securities in January 2000. Out of the 900,000 settlements, 420 trades failed as a result of administrative errors and not due to computer system errors. During the last 12 months The Bank of New York settled over 10,860,000 trades. Out of the 10,860,000 trades that settled within the last 12 months, 5,160 failed due to administrative errors. The percentage of trades that failed last month and the past 12 months is approximately 0. 25. What is the limit on your firm's errors and omissions insurance policy and who is the insurance carrier? Please refer to Exhibit G. 26. Where is the vault facility in which you firm would hold the Municipality's physical securities (street address, city, and state)? DTC book entry bonds, bearer bonds and registered physical bonds are housed at 101 Barclay, New York, New York. This secured vault currently stores approximately fourteen million certificates and has the capacity to store an additional twenty-one million certificates. An additional three million certificates are kept in our temporary working supply, housed in lektrievers on the eleventh floor of 101 Barclay Street in a secured print room. Vault access is limited to four authorized personnel. No employee can be in the vault at any time unless accompanied by another authorized employee. Letters of Credit, Bond Insurance, Surety Bonds, Guaranteed Investment Contracts and UCC filings are housed at 700 South Flower Street, Los Angeles, California. This secured vault currently stores over 500,000 documents and has the capacity to store an additional 700,000. BNY Western Trust Company uses MBMS, a leading tracking system, to keep inventory of the documents. SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE 27. Please describe how your firm would ensure that all of the Municipality's securities that it holds in trust will qualify for a GASB 3, Category 1 rating. Alternatively, if your firm does business with the Municipality as a broker/dealer, please identify and describe the exact amount of its insurance coverage with respect to securities that it trades and also holds in trust (GASB 3, Category 2 rating). P BNY Western Trust Company does not act as a broker/dealer. We will hold all securities belonging to the Municipality in the name of BNY Western Trust Company as trustee for the City of Palm Desert. By not acting in the capacity of a broker/dealer, BNY Western Trust Company will ensure the Municipality a GASB 3, Category 1 rating. The Bank of New York has a trading desk that is capable of getting 3 bids from various broker/ dealers. The Municipality can then instruct the BNY Western Trust Company to buy/sell a particular trade. 28. Please identify and describe your firm's trust accounting data processing system; its reporting capabilities; how it can be accessed on-line; and how often, over the last 12 months, it has been inaccessible because of technical problems. The corporate trust recording function for investment balances is performed by Trust Accounting System (TAS). TAS is a proprietary system owned by The Bank of New York. As a proprietary system, TAS can be customized to meet our client's needs. With regards to the City of Palm Desert, we have the technology and resources to set up an interface between INFORM and SymPro. INFORM will allow the Municipality immediate on-line Internet access to review bond proceeds and account transactions directly from the Municipality's personal computers. For more information on TAS and INFORM please refer to Tab ill. TAS has been inaccessible twice over the last 12 months due to technical problems. 29. Does your firm have an existing interface program that is capable of electronically linking your firm's trust accounting data processing system with SymPro, and directly transferring cash balance data into individual SymPro investment files? (check one) ® Yes ❑ No If"yes", please describe the interface program's capabilities with respect to SymPro and how long the interface program has been operational. Please also list three references from California public agencies that are currently using the interface program. • SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE The Bank of New York's internet based reporting system (INFORM), allows users to export cash balance information from our Trust Accounting System (TAS) to any third party accounting system. The system has been operational for over 2 years and is used by over 50 of The Bank's largest custody clients. t P Users select the report writer function within the INFORM system and specify what data fields they wish to extract. The resulting data is then saved as a standard ASCII Delimited file that can be imported into third party accounting systems. The Bank of New York would require 90 days lead time to setup an account for data extract capabilities. _ r mom w = r "Ump, &*driy.=WtevWs/im kav?ob +M10230138NaoadT9os-0 CASH CREDITS 1/1r1m 0.000000 0.0000N 007290163 CASH CREDITS 1!7l2000 0.00D000 0.000000 000280163 CASH DEBITS 12/30/1999 0.000000 0.00W00 000290163 CASH DEBITS 1110000 0.000000 101.780000 000290163 CASH DEBITS 117f2000 0.000000 1,465,304.260000 000280163 x 1,5/2000 0.000000 0.000000 000MI63 1MI999 0.000000 0.000000 000290163 1 fi= 0.000000 0.000000 000290163 Export Report As ®®- s anus s. s.esss r Comma Delimited File r HTML File r Acmbm File �— 11 30. Please describe the procedures that your firm would use to ensure that all of the Municipality's bonds are in compliance with their Indentures of Trust. The Primary Administrator is a member of a team consisting of two officers, an operations administrator and a Team Leader. The Primary Administrator reads all SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE the required governing documents. After document review, the Primary Administrator sets up all compliance, flow of funds and investments ticklers in The Bank of New York's proprietary tickler system (Corporate Trust Administrative System). Our Corporate Trust Administrative System generates a tickler report that enables the Primary Administrator to comply with the Indentures of Trust. The Corporate Trust Administrative System generates several reports that enable th team leader, compliance officer and division manager to track delinquent ticklers. All administrators are responsible for providing proof taken in order to sign off on the delinquent ticklers. The designated Team Leader is responsible for reviewing the account set-up as well as the ticklers in the Corporate Trust Administrative System. The Team Leader is also responsible for ensuring that all the Administrators sign off on current and past due ticklers on a monthly basis. The Team Leader performs an annual account review for every issue on the Primary Administrator's municipal bond portfolio. BNY Western Trust Company also has a Compliance Officer. The duties of the Compliance Officer include monitoring ticklers, random account reviews, legal advice and implementation of new regulations. The team work among the Primary Administrator, Team .Leader and Compliance Officer ensured that BNY Western Trust Company maintain a Satisfactory Rating in its most recent State of California Department of Financial Institutions' audit. In addition, we will prepare a detailed account synoptic including information relating to investments, debt service, compliance and requisition payments, (see Tab VII) for each issue. This synopsis serves as an aid for our clients, and assists the administrators as well, by allowing them to become familiar with the governing documents and establish ticklers and procedures in the process. SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE 31. Will your firm charge acceptance fees and counsel fees for the Municipality's outstanding bond issues if it becomes the successor trustee? (check one) ® Yes ❑ No If"yes", please identify the charges in the Fee Proposal. BNY Western Trust Company will charge the Municipality a nominal acceptance fee of$100 per bond issue for the transfer of successor trustee duties. 32. Please describe the capabilities and the experience of your firm in providing all services that are listed under "Required Services" in this RFP. As one of the leading providers of Corporate Trust services in the nation, The Bank of New York has the capabilities and experience to provide the services that are listed under "Required Services". The Bank of New York has been providing trust services to municipalities since 1887. The Bank of New York currently administers 67,000 accounts representing over $700 billion in debt outstanding. As Trustee, BNY Western Trust Company is prepared to dedicate a California based administrative team with systems support to perform all of the applicable duties as trustee or fiscal agent including: • The preparation of a detailed account synoptic including information relating to investments, debt service, compliance and requisition payments for each issue. • Review all documents supporting new accounts; consult with counsel, underwriter, representatives of the County; negotiate mutually satisfactory terms and conditions for administration of the account. • Represent the Bank at meetings, RFP sessions, pre-closings and closings of new accounts; prepare standard instructions for administrative, and investment digests; control, coordinate and follow-up original issuance of securities and the transfer and investment of funds. • Ensure that new accounts and account changes are properly briefed and that proper operating instructions and controls are in place. • Monitor the day-to-day administration of accounts. r SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE • Work closely with clients in assuring the proper and timely administration of their accounts; assists in problem solving; coordinate new business and product opportunities with marketing officers. • Schedule a regular face to face customer calling program with County personnel in developing a cooperative and mutually beneficial relationship. • Assure user/administrator contact and liaison with Operations and Technology management on specifications covering new products. BNY Western Trust Company also pledges to set up the Municipality's bond issues on INFORM. INFORM allows clients to access, view, print, and archive management reports directly from their PCs through standard Internet software. The Bank of New York will also set up an interface between INFORM and SymPro. • Maintain all collateral required under the terms of the agreement, arrange all safekeeping provisions, collect and receive interest income, and provide periodic reports ofsu ch holdings as required. • Ensure all compliance items are maintained in accordance with the terms of the Indenture. Conduct regular compliance reviews during the life of the issue and provide written notification of upcoming indenture requirements. • Provide the Municipality with confirmation documents on receipt and delivery of securities or monies as they occur. If trades fail, BNY Western Trust Company pledges to notify the City by 11:30 PM. 33. Please describe any "Optional Services" that you believe would be of benefit to the Municipality. Any associated costs should be itemized in the Fee Proposal. The Bank of New York is currently providing its clients with BNY SMART Services. This affordable windows based portfolio management software designed for the public sector, is a great tool as you track the investment and safekeeping of your operating funds and bond proceeds. Our technological capabilities have enabled us to establish links with other financial institutions you may be working with to electronically feed information directly into this software. This reduces much of the time spent in the monthly reconcilement and reporting process. Please refer to Tab V for additional information on BNY SMART Services. The associated cost for BNY SMART Services varies depending on the size and complexity of the Municipality's portfolio. SECTION D • RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE 34. Please list and describe the money market funds that your firm offers as part of its automated cash sweep program. Please provide a breakdown of the basis points that,would be charged for each fund. BNY Hamilton Treasury Fund — AAA ratings by S&P and Moodys • Underlying assets — Treasury Obligations and Repos • 60 day maturities Federated Treasury Obligations Fund — AAA ratings by S&P and Moodys • —Underlying assets — Treasury Obligations and Repos • 90 day maturities Wells Fargo Treasury Plus — AAA ratings by S&P and Moodys • Underlying assets - Treasury Obligations and Government Obligations • 90 day maturities Management Servicing Other Fee Fee and Expenses Total 12B-1 Fees BNY Hamilton .10% .25% .16% .51 % Federated Investors .10% .25% .35% .70% Wells Fargo .35% .0% .30% .65% 35. Why should your firm be retained as the Municipality's trustee? Please elaborate on any competitive advantages that the Municipality would gain by selecting your firm, as opposed to other firms. • Customer Service As part of our commitment to provide the Municipality with exceptional service, we have designated Alicia Roeschlein, an experienced and customer service oriented administrator, to work as the Municipality's primary contact. Alicia is the Municipality's single point of contact, dedicated to servicing the Municipality's portfolio. Alicia currently administers several bond issues that have Dutch Auction Floating Securities and Inverse Floating Securities similar to the Municipality's 92 Tax Allocation (Project Area No. 1) financing. Alicia and her Assistant, Fe Tuzon, as well as other team members are available during normal business hours, Pacific Standard Time. What we essentially offer SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE the Municipality is an informed administrator who will handle every detail of your account with an administrative process that is not fragmented. • Commitment to Corporate Trust and Securities Processing The Bank of New York's commitment to Corporate Trust and Securities Processing i� unparalleled. Since 45% of The Bank of New York's income is derived from securities processing and related services, the Bank considers these businesses, including Municipal and Corporate Trust, primary to its success. Unlike our competitors whose main business is retail and commercial banking, The Bank of New York's Municipal Trust is a business that receives senior management support and resource allocation. Over the last 5 years alone, The Bank of New York has spent over $1 billion on Securities Processing Systems upgrades and enhancements. Our competitors invest their capital in technology for retail and commercial banking. Our Custody unit, Corporate Trust and Municipal Trust all share the same trust accounting system. Since the Bank of New York's core product is in securities processing, we are able to invest greater sums of capital in technology dedicated to securities processing. Over the past few years, the corporate trust industry has experienced a steady period of consolidation. Many Banks that were once major Corporate Trust providers, have decided to exit the business. As major banks exit the corporate trust industry, we have shown a commitment unmatched by any other Corporate Trust provider. We have acquired 29 corporate trust books of business within the last five years. Specific to California, no other institution can demonstrate their commitment to providing trustee services to the public finance marketplace better than BNY Western Trust Company. We have acquired the following California corporate/municipal trust businesses. • Meridian Trust Company of California— 1995 • Wells Fargo Bank— 1997 • Harris Trust of California—(announced January 2000) Through our fully staffed offices in both Los Angeles and San Francisco, our business has grown by providing attentive and professional service to our clients. Our commitment will continue to be demonstrated by adding resources and staff to both of our California offices as we grow. Our staff in Los Angeles and San Francisco has grown by 14% in the last year. • Technology INFORM — Through INFORM (please see response to Question 428), clients can have Internet access to review bond proceeds and transactions. INFORM grants immediate SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE access to your account balances and transactions at no charge. Reports may be customized to accommodate the Borrower's accounting requirements. The Bank of New York will also create an interface between INFORM and Sympro. BNY SMART Services — Through BNY SMART services (please see response to Question #33), we provide comprehensive asset reporting, portfolio management, custody, accounting, reconciliation, and safekeeping services. These services relieve our clients of the time-consuming work associated with monitoring, tracking and providing consolidated portfolio reporting as well as the infrastructure necessary to get the job done. Our services bring these tasks into an efficient, automated environment. BNY CROSSROADS - Our Strategic Initiatives Group is preparing to launch "BNY CROSSROADS". BNY CROSSROADS should be available to the Municipality very soon. For a nominal fee BNY CROSSROADS will essentially deliver to our clients, via e- mail, their monthly statements and holdings in an excel spreadsheet format ready for internal use. • Successor Trustee Experience As the leader in corporate trust consolidation, The Bank of New York has had to perform successor trustee duties for all the 29 corporate trust portfolios that have been acquired in the last 5 years. These corporate trust acquisitions have given The Bank of New York the experience to process the transfer of the City of Palm Desert's book of business. Like US Bank, The Bank of New York uses BondMaster as a bond registrar system. If appointed successor trustee, The Bank of New York will be able to do an electronic tape to tape transfer of bond holder records with US Bank. The result would be an accurate transfer of bond holder information. As a result, the Municipality's bond holders and investors will not be affected by the transfer of trustee services. In 1999, BNY Western Trust Company successfully transferred duties from prior trustees for several issuers including: The City of Fairfield (16 issues); The City of Tracy (22 issues); City of Adelanto (12 issues); Fairfield-Suisun Sewer District (2 issues), and others. During each conversion we successfully coordinated all aspects of the transfer in accordance with a pre-set timeline to aid the process. We encourage you to contact these issuers to discuss their experience. Please refer to Tab IV "Transfer of Duties to a Successor Trustee" for specific information regarding the simplified process of changing your trustee as well as successor trustee references. Please note that BNY Western Trust Company will generate the (Sample Letters) for the Municipality as discussed in the Sample Letters section of the Transfer of Duties to a Successor Trustee in Tab IV. • Account Synoptic SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE We pledge to provide our customers with a detailed Account Synoptic for existing and future issues within 60 days after a bond closing. The Account Synoptic contains unique features pertaining to the bond issue including contacts, payable dates, redemption provisions, investment language, compliance responsibility and a debt service schedule The account synoptic will assist the Municipality in managing its debt. • Coachella Valley References BNY Western currently serves as trustee to several cities in the Coachella Valley. We encourage the Municipality to contact these neighboring cities. Mr. Tom Kanarr Finance Director/Treasurer City of Palm Springs P.O. Box 2743 Palm Springs, CA 92263 (760) 323-8229 Mr. Stephen Compton Finance Director City of Indio 100 Civic Center Mall Indio, CA 92202 (760) 342-6560 Mr. Dudley Haines Finance Director City of Cathedral City 68-700 Avenida Lalo Guerrero Cathedral City, CA 92234 (760) 770-0354 36. Have any of your firm's public sector clients claimed, in writing, within the last 12 months, that your firm was responsible for any investment losses? (check one) p Yes ® No If"yes", please describe each matter briefly. 37. Has your firm been subject to any litigation, arbitration, or regulatory proceedings, either pending, adjudicated, or settled, within the last 12 months, that involved allegations of improper, fraudulent, disreputable, or SECTION D RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE unfair activities related to the purchase, sale, or settlement of securities on behalf of institutional clients? (check one) ❑ Yes ® No If"yes", please describe each matter briefly. 38. Has your firm been subject to a regulatory, state, or federal agenc�t investigation within the last 12 months, for alleged improper, fraudulen{, disreputable, or unfair activities related to the purchase, sale, or settlement of securities? (check one) ❑ Yes ® No If"yes", please describe each matter briefly. CITY OF PALM DESERT PROPOSAL FOR CORPORATE TRUST SERVICES UNION BANK OF • R N I • PREPARED BY Carl J. Boyd, M.B.A C.C.T.S. Vice President PRESENTED ON 3 March 2000 _ t SECTION C • RFP NO. 00-01: FEE PROPOSAL ESTIMATED TOTAL DIRECT SERVICES ANNUAL VOLUME UNIT PRICE FEE PRICE Acceptance Fees Conversion $ $ WAIVED Counsel Fees Conversion $ $ WAIVED Trustee Fees 11 $ varies $ 16,800 Fiscal A ent Fees 3 $ 1,500 $ 4,500 Paying Agent Fees 0 $ 500 $ 0 Registrar Fees $ 0 $ 0 Transfer Agent Fees $ 0 $ 0 Defeasance Escrow Agent Fees 3 $ 500 $ 1,500 Depository Agent Fees $ 0 $ 0 Tender Agent Fees 0 $ 2 $ Letter of Credit Draw Charges 0 $ $ Bondholder Account Maint. Charges $ 0 $ Wire Transfer Charges 99 $ 19 $ qAa Redemption Charges n $ isn $ Security Trade Charges 79 $ rn $ Collateral Maintenance Charges $ $ Out-of-Pocket Cha Is varies $ 6% of annual $ 1,338 ltenlze.8lf�1h&Y' i9eioLv: a Certificate Cancellation 0 $ 5 $ 0 Certificate Issuance 0 $ 3 $ Tax Re ortin $ 1, 50 $ Bond Payment 0 $ 1.50 $ 0 TOTAL ANNUAL FEES $ $ 26,438 Each offeror shall be responsible for contacting the Municioality's.current trustee, U.S. Bank, for information on the annual volume for each service. 3 ; 3 Ww W 00000mmomm$omm m mmmNnmmomm nmm 4 _ - nnn- oomoon mo N pp pp pp pp pp tt pp pp pp iOpJ N W OImmNOONOOfON OO A 0 0 0 0 0 0 0 0 0 00 O R 0 0 0 0 0 0 0 0 0 0 0 000 O n nnnnnnnnnnnnn m ' is m 88 8 m 088888 88 g N m m O m m m Y o 0 o m o o o > > > > > > > > > > > > > > 33333333333333 000 a a a o 0 0 0 0 o m o 0 0 0 N g 0 2 2 2 2 2 2 2 2 2 2 2 iz LLV- FI- I- FFHHFHF m ^ O O r L Z o @ m N u m mZ 0 m g m o 0 o c 0 C 0 Z p a O O Z N O = w a < - = Q N o E m m o m c c Zmm S Ti ry O Z a Z$ N N a N V 0N a A N m m m O y V 0 e._ m m o m 0 o O p c cca` p m m p p 4 'o a` c 0 m o m m » p "aa mSOG o w m m o m 0 0 0 0 m m m ¢4 0 K M C oc LL' E V > > c c c c c c cc o c c $ o $ o 0 0 0c 0 0 c O E M > > zoom, naaaaaaaaa x w x x x x x x � EQ mmFm-/� Fff Hlm- IpH m 0 0 TQZ "' v '�' m �!a 3 a c3 mm � �� c N �pgo�HOH�OOOpM ry (m O N N 55jj O N m fm N L I -7 mo 25�N � mnO u OI n lc;0 O m O Mq g q q M M q q M M M M q F N Fee Proposal Terms of Proposal r Acceptance and Set-up Fee: WAIVED (Due and payable on the closing date.) Annual Administration Fee:. . $1,800 per Trustee (Fee varies by type of appointment) $1,500 per Fiscal Agent (Due and payable in advance on the transfer date) $ 500 per Paying Agent Annual Escrow Agent Fee: (ifrequired) $ 500.00 (Due and payable on the closing date.) Set-up and Review of Investment Agreement: (ifrequired) $ 500.00 Legal Counsel Fee: No Charge (use of Union Bank in-house legal counsel) Transactional Charges: Serial Maturities: No Charge Redemptions: ($350minimumfee) Cancellation per Certificate: $ 5.00 Issuance per Certificate: $ 3.00 Payment per Bond/Coupon: $ 1.50 Tax reporting ($150 minimum) $ 1.50 Disbursements /wires (each): $ 35.00 Investments (per sale/purchase/transfer): $ 60.00 Dissemination Agent (per event): $ 225.00 Out-of-Pocket Expenses: 6% of annual fee Termination Fee: By Appraisal Fees subject to acceptance and review by Union Bank of California ofall documents pertaining to this offer. Cost Proposal Summary Our calculations indicate a total annual fee of approximately $2,098 per bond issue where Union Bank of California serves as Trustee and a total annual fee of approximately $1,780 per bond issue where Union Bank of California acts as Fiscal Agent. If the account is not Book-Entry only, there may be other fees relating to certificate issuance, cancellation and redemption. The total fees estimated for all bond issues is $21,300 in annual fees excluding transaction fees and $26,438 total fees including transaction fees. Section D RFP No. 00-01: Trust Services Questionnaire 1. Firm Name: Union Bank of California,N.A. 2. Contact Address: 120 S. San Pedro Street, Suite 406 Los Angeles, CA 90012 ` r 3. Contact Personnel: Account Representative Supervising Manager Name: Vivian Savedra Name: Andrew Ball Title: Assistant Vice President Title: Vice President TEL: (213) 972-5673 TEL: (213) 972-5676 4. Please provide resumes for the account representative,the supervising manager, and any other employees who would be assigned to the Municipality's account. Please identify the current average trust client caseload for each employee. Vivian Smvedra, Assistant Dice President (213) 972-5673 Vivian is an Assistant Vice President with over 11 years experience in the administration of corporate trust accounts, including those involving Certificates of Participation, Mortgage-Backed securities, Hospital and Water Revenue and corporate debt issues. She attended Rio Hondo college and is a graduate of the Canon Financial Institute. Prior to joining Union Bank of California, Vivian worked as an administrator in the corporate trust department of First Interstate Bank of California on a wide variety of issues. Vivian's current account load is approximately 85 accounts. Andrew Ball, Vice President (113) 972-5676 Andy has been with Union Bank's Corporate Trust Department since 1991. He currently manages many important client relationships. His experience includes over 14 years in Corporate Trust and the management of all types of accounts. Some of his clients include San Diego Unified School District, the City of Lake Elsinore and the City of Big Bear Lake. He received his B.S. in Business and his M.B.A. from the University of Southern California. He is a graduate of the Cannon Financial Institute and is a Certified Corporate Trust Specialist. Andy's current account load is approximately 85 accounts. See the attached organization chart for more information. 5. Please provide five references from California cities that have an established relationship with the account representative who is listed in Question 3. Indicate: (a) name of city; (b) contact person; (c)address; (d) telephone number; and (e) length of relationship. City of Anaheim Charlene Jung, Treasurer 201 South Anaheim Blvd., Suite 901 Anaheim, CA 92805 714-765-5117 length ofrelationship: 5 years City of National City MaryLou Matienzo, Finance Director 1243 National City Blvd. National City, CA 91950 619-336-4331 length of relationship: 5 years City of Colton Mike Williams, Treasurer 650 N. La Cadena Drive Colton, CA 92324-2893 909-370-5049 length of relationship: 5 years City of Buena Park Stephen Dunn, Finance Director/Treasurer 6650 Beach Blvd. Buena Park, CA 90622 (714) 562-3772 length of relationship: 1 year City of Riverside Bill Hansen, Debt Administration 3900 Main Street Riverside, CA 92522 (909) 782-5539 length of relationship: 2 years 6. Please provide two references from California cities that no longer have a relationship with your firm. Indicate: (a) name of city; (b)contact person; (c) address; (d)telephone number; and (e) length of relationship. Please explain why your firm no longer manages these accounts. We have never lost a relationship due to client dissatisfaction. We have only lost one account from this department which was lost through a bid process. The City of Fairfield consolidated their U.S. Bank accounts with one Corporate Trust provider. They had 36 accounts with U.S. Bank and one issue with Union Bank of California. We bid on the entire relationship but it was not awarded to us due to price. Our one account was moved to the new Trustee. City of Fairfield Oscar G. Reyes, Jr., Treasurer 1000 Webster Street Fairfield, CA 94533 (707)429-7497 length of relationship: 2 years 7. Please identify the number of professionals and support staff that your firm has in the corporate trust office that would serve the Municipality. There are eight administration personnel in the Los Angeles office, eight administration personnel in the San Francisco office and ten operations personnel in the Los Angeles office. There are a total of 26 employees in the Corporate Trust Department. 8. How many of the employees in Question 7 devote a majority (>50%) of their time to municipal debt administration? Every employee in the administration area devotes more than 50% of their time to municipal debt administration. Most of the operations employees support municipal bond administration functions. 9. What percentage of time does the account representative who is listed in Question 3, devote to municipal debt administration? Vivian Savedra devotes 100%of her time to municipal bond administration. 10. What is your firm's fiduciary classification? Union Bank of California, N.A., is a national banking association. 11. Please describe your firm's ownership structure. If your firm is owned by a parent bank holding company or corporation, then please identify that entity's name; its net capitalization, and where it is headquartered (city and state). Union Bank of California, N.A. is the primary banking subsidiary of UnionBanCal Corporation. UnionBanCal Corporation is headquartered in San Francisco. The Corporation's capital information as of December 31, 1998 is: Total capital (to risk-weighted assets) $3,396,596,000 Tier 1 capital (to risk-weighted assets) $2,895,757,000 Tier I capital (to quarterly average assets) $2,895,757,000 12. Where is your firm headquartered (city and state)? UnionBanCal Corporation is headquartered in San Francisco. Union Bank of California is the second largest bank headquartered in California and the 281° largest bank in the United States based on assets. 13. Based upon currently available information, is your firm a possible merger or acquisition candidate? No. Union Bank of California greatly benefits from its relationship with its majority shareholder, The Bank of Tokyo-Mitsubishi, Ltd. It is among the largest banks in the world with approximately $600 billion in total assets and offices in more than 40 countries. The Bank of Tokyo-Mitsubishi, Ltd. owns approximately 64.1 percent of UnionBanCal Corporation. Therefore, the Bank of Tokyo-Mitsubishi, Ltd. solely controls the decision to merge, acquire or be acquired. The Bank of Tokyo-Mitsubishi, Ltd. has a Corporate Trust Division. In 1999, Union Bank of California purchased the trust portfolio of Imperial Trust Company. 14. What federal or state agency supervises or examines your firm? Union Bank of California, N.A. is regulated by the Office of Comptroller of the Currency. 15. What is the total amount of your firm's combined capital (exclusive of borrowed capital) and surplus as of 31 December 1999? (1999 figures are not available) The Bank's total capital as of December 31, 1998 is: Total capital (to risk-weighted assets) $3,396,596,000 16. What is your firm's Tier 1 capital ratio (to risk-adjusted assets) as of 31 December 1999? (1999 figures are not available) The Bank's Tier 1 capital ratio as of December 31, 1998 is: Tier 1 capital (to risk-weighted assets) $2,895,757,000 9.52% 17. What is the total dollar amount of outstanding municipal bond principal for which your firm provides corporate trust services? The total dollar amount of all outstanding bond principal (government and non-government) for which your firm provides corporate trust services? We have approximately $8 billion in municipal debt under administration and $11 billion total debt under administration. Union Bank of California is a West Coast provider of Corporate Trust services. We believe we are able to provide a higher level of service to our clients by maintaining a concentrated focus on the western United States and more specifically, California. 18. Does your firm have a corporate trust office that is physically located within the State of California? Yes. We have administration offices located in Los Angeles and San Francisco. Our operations office is in Los Angeles. Our normal business hours are 8:00 am to 5:OOpm. However, our office staff has flexible schedules to support our client's needs. We have been providing Corporate Trust services in California since 1923. 19. Is your f irm's corporate trust administration centralized in one physical location? No. Our administration offices are located in Los Angeles and San Francisco, in close proximity to visit our clients. We are in the same state and time zone as the vast majority of our clients. We have no intention of centralizing administration. 20. Does your firm own a securities clearing operation or does it subcontract that responsibility to another firm? We clear our own trades. 21. Where is the securities clearing operation (city and state)? What is the time zone? What are the "cut-off" times for"cash" trades, corporate securities, Treasuries, Agencies, and bankers acceptances? Securities are cleared in our San Francisco office, the same time zone as our clients. The standard cut-off times are as follows: Union Bank of California is a member of the 12''Federal Reserve District. The security transfer cut-off time is 2:30 P.M. EST. The money transfer cut-off time is 2:30 PM EST. 22. Which of the following investment instruments is your firm capable of clearing? We can clear all items listed. Attached are our settlement instructions for all types of trades. 23. Please describe your firm's policy regarding failed transactions and its method of compensating customers in the event that your firm is at fault. Please provide a description of the compensation formula and the methodology that is used to calculate compensation. All transactions will be settled on contractual settlement date. The Bank will follow-up on buy/sell fails. Generally, banks compensate.clients using the Fed Funds rate. Most of our municipal clients purchase securities through our bank, minimizing the risk of a failed trade. 24. How many and what percentage of your securities transactions failed last month? During the last 12 months? We average about three failed trades per month in our department. These trades are generally for corporate accounts that were to be delivered by a broker that failed. The fail rate for municipal trades is essentially zero. 25. What is the limit on your firm's errors and omissions policy and who is the insurance carrier? The Bank Carries Professional Liability insurance with a limit of$15,000,000. The insurance is maintained through Marsh Risk & Insurance Services and American International Specialty Insurance Co. 26. Where is the vault facility in which your firm would hold the Municipality's physical securities (street address, city, and state)? Bond inventory for the bond issues would be held in our vault at 120 S. San Pedro Street, 4'" Floor, Los Angeles, CA. Securities purchased would be held as follows: Federal Reserve Bank U.S. Governments and Agencies Citibank Repo's, BA's CD's Depository Trust Company Bonds,Notes, Commercial Paper, Equity Participants Trust Company GNMA's Euroclear Operations Center Foreign Issues 27. Please describe how your firm would ensure that all of the Municipality's securities that it holds in trust will qualify for a GASB 3, Category 1 rating. Alternatively, if your firm does business with the Municipality as a broker/dealer, please identify and describe the exact amount of its insurance coverage with respect to securities that it trades and also holds in trust (GASB 3, Category 2 rating). It is standard practice for municipal bond issuers to direct the trustee to purchase securities through their trading desk. If we are directed by the Municipality to purchase a security, we would use our own trading area. This is the standard practice for most bond issuers. The securities will be held in trust and registered as Union Bank of California.as Trustee for the City of Palm Desert. These would be separate trust assets and not assets of the bank. Most Corporate Trust clients use Union Bank as their broker/dealer for trust assets. The purchase of securities by the Trustee is normally authorized in the Investment section of the relevant Trust Indenture. 28. Please identify and describe your firm's trust accounting data processing system; its reporting capabilities; how it can be accessed on-line; and how often, over the last 12 months, it has been inaccessible because of technical problems. The Bank contracts for the SEI system, which is the most widely used trust accounting system in the world. The system is distinguished for providing marked-to-market asset valuation, comprehensive reporting and third-party on-line real-time access via a modem. Internet on-line access should be available in March or April of this year. The system provides comprehensive statements detailing all portfolio activities such as: detailed listing of all transactions, asset holdings with market value, and cash flow reports, which can be generated by our clients on-site. The system has been down much less than 1% of the time and is generally always available during business hours and weekends. We are very satisfied with the system's availability. 29. Does your firm have an existing interface program that is capable of electronically linking your firm's trust accounting data processing system with SymPro, and directly transferring cash balance data into individual SymPro investment files? Yes. The City of Palm Desert is currently using this program. It has been operational for approximately six years. Three references are: City of Huntington Beach Shari Freidenrich, Treasurer P.O. Box 190 Huntington Beach, CA 92648 (714) 536-5200 City of Cerritos Becky Lingad, Finance Manager P.O. Box 3130 Cerritos, CA 90703-3130 (562) 860-0311 City of Corona Elray Konkel, Finance Director P.O. Box 940 Corona, CA 91720 (909) 279-3505 30. Please describe the procedures that your firm would use to ensure that all of the Municipality's bonds are in compliance with their Indentures of Trust. Each account is set-up in accordance with the governing documents. Each compliance requirement is entered on our tickler system to automatically manage the process. A very large file room is maintained with the compliance materials. Additionally, each account is reviewed every three years by the supervising manager. 31. Will your firm charge acceptance fees and counsel fees for the Municipality's outstanding bond issues if it becomes the successor trustee? No. 32. Please describe the capabilities and the experience of your firm in providing all services that are listed under"Required Services" in this RFP. A. Bond Administration Since 1923 issuers have relied on us to enhance positive investor relations and manage post-issuance activities through our Corporate Trust services. Our broad experience with Trust services ensures that your financing is smoothly implemented and properly maintained. You can be confident that your trust accounts, investments and cash flows are expertly managed. We are a West Coast Trustee. You and your bondholders will appreciate working with a local Trustee. All statements and checks are mailed from California providing you with information and funds quickly. All of our Corporate Trust offices and operations are in California, in the same state and time zone as our clients. We have state-of-the-art bondholder recordkeeping and trust accounting systems. All trust officers utilize the latest computers and software to aid our clients. We can also offer our clients on-line access to their trust account statements through their personal computer. If you desire, you can also communicate with us via e-mail. Service and competence are the most important assets a Trustee can offer. Each administrator intentionally has a comparably smaller account load to be able to provide first-class attention to our clientele. We distinguish ourselves in the marketplace by the responsiveness of our administrators to the needs of our clients and we are readily available to meet any client at their place of business. Our average level of experience is 12 years per administrator and each administrator is highly skilled and competent in handling Trust matters. Each administrator is supported by an assistant and backed up with another administrator. For new municipal issues, we were recently ranked among the top 15 Trustees in the nation and the top 3 Trustees in California. We consistently lead the industry in compliance with Depository Trust Company requirements based upon our performance of timely and accurate payment of principal and interest as well as our compliance with notifications and redemptions. Regardless of our growth, we remain focused on our quality of service to our clients. We work with various auditors and arbitrage rebate analyst firms. Information is provided timely. We provide these firms with statements or on-line access as desired. B. Clearing and Safekeeping The Corporate Trust Department executes trades daily and safekeeps trust assets. The, Bank is a broker-dealer and can accommodate virtually any trade request. C. Trade Confirmations We would allow the Municipality on-line access to their accounts to view real-time information. Trade confirmations can be mailed automatically upon execution of the trade. D. On-Line Trust Reports On-line access would be available to the Municipality for Corporate Trust accounts. In a few weeks, we expect internet access to our trust accounting system to be available. E. Failed Trades The Bank will settle failed trades on contractual settlement date. The Bank will research and attempt to resolve failed trades. The Bank will also notify the Municipality of any failed trades. F. Collect and Transfer Interest Collection of interest and proceeds will be collected routinely. Since the Municipality is a banking client, transfers from the trust accounts to the DDA accounts can easily be performed with an internal transfer at no charge. G. Wire Transfers We initiate and receive wires daily. We will perform these functions as required by the trust documents and the Municipality's instructions. H. Sympro Interface The Bank has been using a Sympro interface for approximately six years. The Bank does not charge for this service. 33. Please describe any "Optional Services" that you believe would be of benefit to the Municipality. Any associated costs should be itemized in the Fee Proposal. For bonds issued after July 1, 1995 SEC Rule 1502-12 requires the issuer to disseminate information. We are willing to perform Dissemination Agent services. Fees are disclosed in the fee proposal. Union Bank of California has entered into an agreement with Orrick, Herrington & Sutcliffe, LLP to provide Arbitrage Rebate Compliance Services for our clients. A fee schedule for this service is available upon request. 34. Please list and describe the money market funds that your firm offers as part of its automated cash sweep program. Please provide a breakdown of the basis points that the mutual fund and your firm would charge for each fund. We offer various funds. The most commonly used funds by Corporate Trust clients are: Provident T-Fund Provident charges approximately 20 basis points to operate the fund and the bank charges 25 basis points for shareholder servicing fees. All charges are fully disclosed to our clients. Highmark 100% U.S. Treasury Money Market Fund Highmark has total annual fund operating expenses of 54 basis points. Mghmark Capital Management is a subsidiary of UnionBanCal Corporation. Other funds are available including Dreyfus funds. 35. Why should your firm be retained as the Municipality's trustee? Please elaborate on any competitive advantages that the Municipality would gain by selecting your firm, as opposed to other firms. With the many mergers and changes in the banking and corporate trust industry, there have been many dissatisfied customers recently. We have consistently been recognized as an excellent provider of service and responsive to client requests. Our personnel are professional, experienced and a pleasure to work with. We do not overburden our employees and realize the long-term benefits of customer satisfaction. Union Bank of California is a pleasant alternative to high-volume, low-service providers. We take the time to visit our clients and develop a relationship. We have recently been appointed by many cities to serve as their successor trustee due to dissatisfaction with their current provider. Some cities that have recently appointed us as successor trustee include: City of Colton Mike Williams, Treasurer (909) 370-5049 City of Buena Park Stephen Dunn, Finance Director (714) 562-3710 City of Indian Wells Greg Johnson, Finance Director (760) 346-2489 City of Grass Valley Wes Peters, Finance Director (530) 274-4300 City of Murrieta Teri Ferro, Finance Director (909) 698-1040 City.of Napa Jed Christensen, Finance Director (707) 257-9510 City of Rialto Andy Green,Finance Director (909) 820-2542 City of Richmond Anna Vega, Finance Director (510) 620-6740 City of Westminster Brian Mayhew, Finance Director (714) 898-3311 We value our city relationships. Many cities utilize more than one of our services which include banking, custody, corporate trust and capital markets. The following cities maintain both custody and corporate trust services with Union Bank of California: City of Anaheim Charlene Jung, Treasurer (714) 765-5117 City of Arcadia James Dale, Finance Director (626) 547-5425 City of Buena Park Stephen Dunn, Finance Director (714) 562-3710 City of Del Mar Suzanne Wellcome, Finance Director(619) 755-9354 City of Grass Valley Wes Peters, Finance Director (530) 274-4300 City of Indian Wells Greg Johnson, Finance Director (760) 346-2489 City of Murrieta Teri Ferro, Finance Director (909) 698-1040 City of Napa Jed Christensen, Finance Director (707) 257-9510 City of Richmond Anna Vega, Finance Director (510) 620-6740 City of Riverside Jerry Rogers, Finance Director (909) 782-5660 City of San Marcos Lupe Cano, Finance Director (760) 744-1050 City of Westminster Brian Mayhew, Finance Director (714) 898-3311 We are differentiated from our competitors by providing a high level of personal service and our local operations. Many cities have realized the convenience and potentially lower costs of utilizing Union Bank of California for all or most of their financial services needs. We have been providing Corporate Trust services in California for over 75 years. Our local operations and local work schedules provides clients with the expertise and information they desire when they need it. We maintain the same working hours as our clients. We are not a satellite office of a Mid-West of East Coast bank. We are based here in California, employing thousands of Californians and investing in local neighborhoods. We maintain two offices within the City of Palm Desert. Union Bank of California recently received a Satisfactory rating on its Community Redevelopment test. Our location, our technology, our service and our professional staff separates us from our competitors. We encourage you to experience the Union Bank of California difference. 36. Have any of your firm's public sector clients claimed, in writing,within the last 12 months, that your firm was responsible for any investment losses? No. 37. Has your firm been subject to any litigation, arbitration, or regulatory proceedings, either pending, adjudicated, or settled,within the last 12 months, that involved allegations of improper, fraudulent, disreputable, or unfair activities related to the purchase, sale, or settlement of securities on behalf of institutional clients? No. 38. Has your firm been subject to a regulatory, state, or federal agency investigation within the last 12 months,for alleged improper, fraudulent, disreputable, or unfair activities related to the purchase, sale, or settlement of securities? No. UNION BANK OF CALIFORNIA SECURITIES AND CASH DELIVERY INSTRUCTIONS FOR CORPORATE TRUST ACCOUNTS EFFECTIVE 12/01/99 DOMESTIC SECURITIES. GLOBAL SECURITIES. P DEPOSITORY TRUST COMPANY EUROCLEAR DTC Participant 2145 A/C 93366,UBOC Global Custody Institutional ID#25196 FTC: UBOC Domestic Clients Agent ID#25196 For a/c: UBOC Trust Account Number CEDEL A/C 33898,UBOC Global Custody NEW YORK PHYSICAL SECURITIES FTC: UBOC Domestic Clients CITIBANI, N.A. 20 Exchange Place,Level C EURO CD'S New York,NY 10043 Bank One,London A/C 087036,UBOC A/C 505-7116,UBOC Global Custody FFC: UBOC Trust Account Number PTC-ELIGIBLE SECURITIES(GNMA) Please contact your account administrator for CITIBANK,N.A. additional information regarding foreign issues held PTC Contra Code: CBANK at agent banks. For a/c: 087036,UBOC FFC: UBOC Trust Account Number FEDERAL RESERVE BANK FRB Eligible Securities Only UNION BK CA LA/TRUST ABA 122000496 FFC: UBOC Trust Account Number CASH WIRES ABA 122000496 Union Bank of California Monterey Park,CA 91755 TRUSDG Trust Department San Diego Branch 263 FFC: Trust Account Name&Number MUTUALFUNDS Union Bank Tr Nominee FBO• A/C: P.O. Box 85484 San Diego,CA 92186 Tax ID#33-0566999 CITY OF PALM DESERT REQUEST FOR PROPOSALS FOR CORPORATE TRUST SERVICES RFP NO. 00-01 PROPOSAL OFFERED BY �i�S TR�/ST Z al$ Iz I � � DED�� U.S. TRUST COMPANY, N.A. SECTION C RFP NO. 00-01: FEE PROPOSAL The fees proposed are guaranteed for the life of the transactions ESTIMATED TOTAL DIRECT SERVICES ANNUAL VOLUME UNIT PRICE FEE PRICE Acceptance Fees (Conversion) 22 (one time) $250 $ 5,500 Counsel Fees (Conversion) N/A' $ $ Trustee Fees 8 $1,900/$2,500(Bond $15,800 #8) Fiscal Agent Fees 6 $ 1,500 $9,500 - Paying Agent Fees $ $ Registrar Fees $ $ Transfer Agent Fees N/A $ $ Defeasance Escrow Agent Fees 8 $750 $6,000 Depository Agent Fees N/A $ $ Tender Agent Fees 1 $750 $750 Letter of Credit Draw Charges Unknown $50 $ Bondholder Account Maint. Charges 74 $5 $370 Wire Transfer Charges 300 (estimated) $25 $7,500 Redemption Charges $ $ Security Trade Charges 300 (estimated) $35 $10,500 Collateral Maintenance Charges N/A $ $0 Out-of-Pocket Charges AT COST' $ $ Dissemination Agent Charges Optional' $ 35 per transmission $ Failed Remarketings Unknown $100 each $ Review of Investment Agreements $250 each $ TOTAL ESTIMATED ANNUAL FEES $ $55,920 .'Please also refer to our version of the fee schedule that adds clarifying language for most services required. SECTION C RFP NO. 00-01: FEE PROPOSAL *Please also refer to our version of the fee schedule that adds clarifying language for most services required. Each offeror shall be responsible for contacting the Municipality's current trustee, U.S. Bank, for information on the annual volume for each service. So noted. Mr. Ashfraf Almurdah of U.S. Bank Trust disclosed to me that th Municipality's accounts average between 20 — 25 wires and 20 — 25 investmen transactions a month. For the purposes of this proposal, I assumed a high number of 25 per month for both wires and investments. I have calculated the bondholder fees based on information provided by the Municipality on 3/1/00. SECTION C REFP NO. 00-01: FEE PROPOSAL ACCEPTANCE FEE $250 per issue For review and complete analysis of the trust indenture, fiscal agent agreement, escrow agreement or trust indenture and other relevant documents, meetings and conferences with all parties, execution of documents relating to the transfer of administration, and conversion of bondholder accounts assuming book entry issuance. If bonds were issued in certificated form additional fees will apply for bondholder conversions. COUNSEL FEES: We don't anticipate the need for counsel review to covert the transactions for U.S. Trust administration. In the event that counsel is needed in response to challenges posed by U.S. Bank, counsel will be engaged and charged for at cost. ANNUAL ADMINISTRATION FEES As Paying Agent $750 per issue As Escrow Agent $750 per issue As Fiscal Agent $1,500 per issue As Trustee: $1,900 per issue As Trustee for Variable Rate Issue (#8) $2,500 For normal administrative functions as specified in the issuing documents, including maintenance of administrative records and duties in connection with security provisions. Any extraordinary services will be charged based on our appraisal of the services rendered. REGISTRAR AND PAYING AGENT SERVICES The following fees applied to physically issued bonds. For bonds that are book-entry only issuance through DTC, there will be no charge. If the issues are refunded, the charges will be at rates current at the time. Certificate Issuance $2 Per Certificate Payment of Interest No Charge Payment of Principal at Maturity, full redemption $.15 per $1,000 or mandatory tender principal amount Payment of Principal based upon partial redemption $.20 per $1,000 principal amount Account Maintenance (Per account, annually) $5 SECTION C REFP NO. 00-01: FEE PROPOSAL OTHER CHARGES Annual Escrow Agent Fees $750 per escrow Annual Tender Agent Fees $750 Charge for Failed Remarketings $100 Review of investment or repurchase agreements $250 ` For complete review of agreement and set up of all necessary accounts. Cost for legal opinion billed is negotiable and billed at cost. Letter of Credit Draws $50 Per draw Purchase, sale, receipt, delivery, maturity or redemption of securities (investment transactions) $35 Per transaction Wire transfers $25 Per wire transfer Out-of-pocket expenses AT COST We only charge for out of pocket expenses m response to specific tasks assigned by the client. Therefore, we cannot anticipate a specific out of pocket expenses to be incurred. Such possible expenses could be for but are not limited to postage, telephone, insurance, express mail and messenger charges, travel expenses to attend the closing or other meetings. Indirect out of pocket expenses NO CHARGE Dissemination Agent Services $35 per transmission For transmission of all mandated notifications to NRMSIRs and MSRB. If notice of a material event defined by SEC Rule 15c-12 needs to be filed, any extraordinary activities performed by U.S. Trust Company, N.A. will be billed commensurate with the services rendered. Debt service payments NO CHARGE Disbursement processing NO CHARGE Charges for arty services not specifically covered in this schedule will be billed commensurate with the services rendered. This schedule reflects charges which are now in effect for our normal and regular services and are minimal only, subject to modification where unusual conditions or requirements prevail. SECTION D 0 RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE 1. Firm Name: U.S. Trust Company, N.A. 2. Contact Address: 515 South Flower Street, Suite 2700 Los Angeles, CA 90071-2291 3. Contact Personnel: Stuart Weiss, Vice President 213-861-5084 213-438-4384 (fax) sweiss@ustrust.com Account Representative Supervising Manager Name:Sandee Parks Name: Sandra Leess Title: Vice President and Title: Senior Vice President Trust Officer and Manager TEL: 213-861-5066 TEL: 213-861-5050 TEL: (800) n/a TEL: (800) n/a 4. Please provide resumes for the account representative, the supervising manager, and any other employees who would be assigned to the Municipality's account. Please identify the current average trust client caseload for each employee. Should the Municipality appoint U.S. Trust as trustee for this financing, Ms. Sandee Parks will be assigned the administrative relationship. Sandee has over fourteen years of administrative experience and is a Certified Corporate Trust Specialist as designated by the Cannon Financial Institute. Sandee has extensive experience with complicated bond issues such as those that employ Dutch auctions. Sandee has a current caseload of approximately 147 transactions. In coordination with her assistant, Mr. Dani Garcia, Assistant Administrator, Sandee is easily able to assume the responsibilities proposed. Dani has over 18 years of experience in income collection, institutional custody and trust administration. Dani's caseload is variable to the monthly activities in the Department. As Department Manager, Sandra Leess does not administer any specific accounts but will serve as back-up for Sandee during vacations, illness, off-site training, etc. Sandy established U.S. Trust Corporate Trust office in Los Angeles in 1988. She has over nineteen years experience in Corporate Trust Administration. Sandee and Stuart Weiss, as well as Sandra Leess, Senior Vice President and Manager, are available to meet with Municipality staff during the stated interview period. 1 of 20 0 SECTION D RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE 5. Please provide five references from California cities that have an established relationship with the account representative who is listed in Question 3. Indicate: (a) name of city; (b) contact person; (c) address; (d) telephone number; and (a) length of relationship While Sandee has extensive experience in corporate trust administration, she presently administers only a limited number of California city accounts. What follows are five references from municipal bond issuers for Sandee Parks: $34,980,000 City of Rancho Mirage Joint Powers Financing Authority (Eisenhower Memorial Hospital) Certificates of Participation Series of 1992 Contact: Mike Bernstein, Senior Vice President\CFO Eisenhower Medical Center 39006 Bob Hope Drive Rancho Mirage, CA 92770 (760) 773-1345 The relationship has been in place since initial issuance. $209,500,000 California Statewide Communities Development Authority (The Internext Group) 1999 Certificates of Participation Contact: Roy S. Haugen The Internext Group 2835 North Naomi Street, Suite 300 Burbank, CA 91504 (818) 729-8120 - The relationship has been in place since initial issuance. Sandee had worked with Mr. Haugen on earlier issues that have been refunded. $109,175,000 California Statewide Communities Development Authority (Children's Hospital Los Angeles) 1999 Certificates of Participation Contact: Lannie Tonnu Children's Hospital Los Angeles 4650 Sunset Boulevard Los Angeles, CA 90027 (323) 669-2235 The relationship has been in place since initial issuance. $10,600,0000 Agoura Hills Financing Authority Lease Revenue Bonds (Civic Center and Library Project) Series 1999 2 of 20 SECTION D RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE Contact: Georgette Holt, Finance Officer 30101 Agoura Court, Suite 102 Agoura Hills, CA 91301 818-597-7319 Sandee's relationship with Ms. Holt dates back to 1991 when Ms. Holt was the Finance Director for the City of Atwater, Merced County. $39,345,000 Sonnenblick-Del Rio Asset Leasing Corporation(The City of El Monte) Certificates of Participation (County of Los Angeles Department of Public Social Services Facility) Series of 1998 Contact: Robert Sonnenblick, Principal Sonnenblick-Del Rio Asset Leasing Corporation 12011 San Vicente Boulevard, Suite 310 Los Angeles, CA 90049 310-471-9200 The relationship has been in place since initial issuance. Last month, Sandee closed a transaction for another Corporation project located in the City of Los Angeles. 6. Please provide two references from California cities that no longer have a relationship with your firm. Indicate: (a) name of city; (b) contact person; (c) address; (d) telephone number; and (a) length of relationship. Please explain why your firm no longer manages these accounts. We have had only one California city ask us to resign our appointment as trustee. This occurred in 1995 after approximately three years of service. The request came as the City received a successor trustee proposal that was bundled with banking services at reduced costs. The proposal came from First Interstate Bank. The Contact information is as follows: The City of Victorville (San Bernardino County) Adair Most, Director of Finance P.O. Box 5001 Victorville, CA 92393 760-955-5060 What follows is an additional issuer who asked us to resign our trustee appointment: John Oester, Vice President, Business and Finance Loyola Marymount University 7900 Loyola Boulevard Los Angeles, CA 90045-8313 310-338-2738 3of20 0 SECTION D • RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE We had been trustee for the University's issues for approximately two years. We were appointed as successor trustee for First Trust (now U.S. Bank Trust.) The University asked us to resign in order to re-appoint U.S. Bank Trust. This action came in response to a request from John F. Grundhofer, U.S. Bancorp chairman and chief executive officer. Mr. Grundhofer is a larger benefactor to the University. 7. Please identify the number of professionals and support staff that your firm has in the corporate trust office that would serve the Municipality. Four. They would be: Ms. Sandee Parks, Vice President and Trust Officer Mr Dani Garcia, Assistant Administrator Ms. Sandra Leess, Senior Vice President and Manager i Mr. Stuart Weiss, Vice President, Sales and Marketing S. How many of the employees in Question 7 devote a majority (>50%) of their time to municipal debt administration? One (Ms. Parks.) 9. What percentage of time does the account representative who is listed in Question 3, devote to municipal debt administration? Approximately 62%. 10.What is your firm's fiduciary classification? (check all that apply) X❑ Bank - National Association ❑ Trust Company - National ❑ Bank — State Association ❑ Trust Company — State ❑ Affiliate of Investment Bank ❑ Limited Purpose Trust Company ❑ Affiliate of Foreign Bank © Affiliate or Subsidiary of a Bank Holding Company ❑ Joint Venture with Another ❑ Other (describe) Firm (describe) 11.Please describe your firm's ownership structure. If your firm is owned by a parent bank holding company or corporation, then please identify that entity's name; its net capitalization, and where it is headquartered (city and state). 4of20 SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE Founded in 1853, U.S. Trust Corporation is the oldest trust institution in the nation. U.S. Trust Company, N.A. was chartered in 1987 and is a wholly owned subsidiary of U.S. Trust Corporation. In combination with our parent corporation, our capital and surplus is in excess of $300M. Our subsidiary headquarters are in Los Angeles. We maintain additional offices for asset management and private banking in Costa Mesa, Larkspur, Los Angeles, San Francisco and Portland, OR. 12.Where is your firm headquartered (city and state)? U.S. Trust Corporation is headquartered in New York City, New York. 13.13ased upon currently available information, is your firm a possible merger or acquisition candidate? (check oneJ ©Yes ❑ No If "yes", please discuss and identify the Possible merger partner or acquiring organization. On January 13th, U.S. Trust Corporation entered into a definitive agreement to merge with the Charles Schwab Corporation. The transaction is scheduled to close during the 2nd Quarter of this year. The merger will enhance U.S. Trust's corporate trust business, as Schwab will bring both cutting edge technology and added operating capital to U.S. Trust. Schwab will operate U.S. Trust as a stand-alone division of the Firm. 14.What federal or state agency supervises or examines your firm? The Office of the Comptroller of the Currency. 15.What is the total amount of your firm's combined capital (exclusive of borrowed capital) and surplus as of 31 December 1999? For U.S. Trust Company, N.A.: $ 26,427,000 (as of 12/31/99) For U.S. Trust Corporation: $301,452,000 (as of 9/30/99) 16.What is your firm's Tier 1 capital ratio (to risk-adjusted assets) as of 31 December 1999? For U.S. Trust Company, N.A.: 18.25% (as of 12/31/99) For U.S. Trust Corporation: 12.10% (as of 9/30/99) 17.What is the total dollar amount of outstanding municipal bond principal for which your firm provides corporate trust services? The total dollar amount of all outstanding bond principal (government and non-government) for which your firm provides corporate trust services? 5of20 SECTION D RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE Our California offices oversee approximately $13,000,000,000 in municipal bond principal while providing corporate trust services. U.S. Trust Corporation (including California) oversees approximately $236,000,000,000 in bond principal (government and non-government) while providing corporate trust services. 18.Does your firm have a corporate trust office that is physically located within the State of California? (check one) ©Yes ❑ No If "yes", please identify the location, the business hours, and how long your firm has been providing corporate trust services in California. U.S. Trust has operated a corporate trust office in Los Angeles since 1988. Our San Francisco office was established in 1998. Our regular business hours are from 8am — 5pm, Monday through Friday. 19.Is your firm's corporate trust administration centralized at one physical location? (check one) X1 Yes ❑ No If "yes", please identify the city and state. The administration provided by Sandee Parks and Dani Garcia would take place in our Los Angeles office. Sandee would direct all aspects of the administrative duties for the Municipality's accounts. 20.Does your firm own a securities clearing operation or does it subcontract that responsibility to another firm? (check one) ❑ Own © Subcontract If "subcontract", please identify the subcontractor and how long your firm has done business with the subcontractor. We subcontract our securities clearing operation to Chase Manhattan Bank of New York City, NY. We have been doing so for approximately three years. 21.Where is the securities clearing operation located (city and state)? What is the time zone? What are the "cut-off" times for "cash" trades, corporate securities, Treasuries, Agencies, and banker's acceptances? New York City, NY which is located in the Eastern Time Zone. The cut-off times for the transaction of business are as follows: For same day settlement of trades: 7:45 a.m. PST/PDT For processing of requisitions: 11:00 a.m. PST/PDT 6of20 SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE For wire transfers: 12:00 p.m. PST/PDT 22.Which of the following investment instruments is your firm capable of clearing? (check appropriate choices), X❑ T-Bills © Certificates of Deposit © T-Notes © Commercial Paper © T-Strips © Corporate MTNs and Bonds X❑ Bankers's Acceptances 0 Mortgage-Backed Securities X❑ Repurchase Agreements © Agencies (specify) We can clear all securities issued by Agencies of the U.S. Government. 23.Please describe your firm's policy regarding failed transactions and its method of compensating customers in the event that your firm is at fault. Please provide a description of the compensation formula and the methodology that is used to calculate compensation. We address failed transactions on a case by case basis. For failed transactions, we would calculate any compensation payment based on the amount of un-invested funds in question, the amount of time the funds were un-invested and the interest rate that would have been earned for the un-invested time period. We credit the issuers account with payment. 24.How many and what percentage or your securities transactions failed last month? During the last 12 months? We do not keep such statistics, as the numbers of failed trades are very few. 25.What is the limit on your firm's errors and omissions insurance policy and who is the insurance carrier? U.S. Trust is a member of the Federal Reserve Bank and is a Federally chartered commercial bank having insurance on accounts through the appropriate federal insuring agency of the United States. These coverages do not apply to any corporate trust account or custodial account administered in our department. We carry a complete schedule of insurance for our corporate trust activities. What follows are U.S. Trust Corporation's various insurance coverages: 7of20 SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE COVERAGE TYPE LIMIT DEDUCTIBLE CARRIERS POLICY PERIOD A combined single aggregate limit of liability of$200 million (See Note 1 for reinstatement)— each Loss or Claim and in the aggregate covered for: Financial Institution.Bond $200,000,000 $1,000,000 Led by Lloyd's 8/1/98— and St. Paul, a 8/1/01 Professional Liability consortium of $200,000,000 $1,000,000 carriers 8/1/98— c. Directors &Officers Liability participate in 8/1/01 -Company Reimbursement - - this program. Program $200,000,000 $1,000,000 8/1/98- 8/1/01 Mail Policy Various Seaboard 5/1/99— Surety 5/l/01 Directors & Officers Liability $50,000,000 $0 Lloyd's and St. 8/1/98— Non-Indemnifiable Program Primary. Paul 8/l/01 ("D&O-NI")—(Note 2) Pension &Welfare Fund $10,000,000 $25,000 Travelers 6/1/9 i— Fiduciary Responsibility Primary 6/l/00 ("P&WFR")—(Note 2) Workers Compensation Statutory Chubb 1/l/00- 1/1/01 *Property & Casualty Insurance $166,000,000 $25,000 Chubb 8/10/1998— (a) Package Policy $ 75,000,000 $10,000 Chubb, Zurich, 1/31/2000 (b) Umbrella/Excess Liabilitv Fireman's Lost Instrument Bond Premium Statutory Chubb 8/10/98- 8/1/01 *Subject to renewal. Note 1: One full reinstatement of$200 million applies to the Program during the policy period. Note 2: $200 million coverage in excess of D&O-NI ($50 million primary) and P&WFR ($10 million primary); and the LIB Premium of$10 million in excess of the $200 million Bond Limit. U.S. Trust's insurance agent for all of the above programs is J&H Marsh &McLennan. 26. Where is the vault facility in which you firm would hold the Municipality's physical securities (street address, city, and state)? Chase Manhattan Bank Four New York Plaza, 1Ith Floor New York City, NY 10003 8of20 SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE 27. Please describe how your firm would ensure that all of the Municipality's securities that it holds in trust will qualify for a GASB 3, Category 1 rating. Alternatively, if your firm does business with the Municipality as a broker/dealer, please identify and describe the exact amount of its insurance coverage with respect to securities that it trades and also holds in trust (GASB 3, Category 2 rating). r In order to be considered Category 1 pursuant to GASB Statement 3, the custodian must be the government's agent and is not the Counterparty or the Counterparty financial institution's trust department. The custodian holds the securities in the government's name. Generally, securities held by a custodian are registered in a nominee name, held by a depository such as Depository Trust Company or held in book entry form at the Federal Reserve Bank. This is done to facilitate the transfer of the beneficial ownership of securities from one party to another without re-registration and with a minimum of physical movement of the paper. For securities owned by a government and registered in the nominee of a custodian or held at the Federal Reserve Bank for the custodian, the criterion of "held in the name of the government" is met if the custodian's internal records identify the government as the owner of the securities. That would definitely be the situation for assets held by U.S. Trust. The issue of acting as Counterparty is less clear cut. A Counterparty is defined as the party that pledges collateral or repurchase agreement securities to the government or that sells investment to or buys them for the government. The implementation guide to GASB 3 indicates that if investments are both acquired and held in custody by a trust department, the investments would be classified in category 3. However, the implementation guide seems to make a distinction between acquiring securities and settling transactions. The guide does not view being involved in the settlement function as conferring Counterparty status on the custodian. U.S. Trust can either place orders for the Municipality or merely settle trades that the Municipality has placed. It would seem that limiting our role to settlement of transactions would result in category 1 treatment. Assets held as trustee under a bond indenture appear to be treated as category 3 and there does not appear to be any remedy to that. We do not act as a broker/dealer for the City. 28. Please identify and describe your firm's trust accounting data processing system; its reporting capabilities; how it can be accessed on-line; and how often, over the last 12 months, it has been inaccessible because of technical problems. The Asset Management System (AMS) is U.S. Trust's on-line customer communications system and is designed to support ours as well as our customers' operations, investment and administrative functions. 9 of 20 • SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE AMS provides on-line access to securities transactions showing the real-time status of trades due to settle on date of inquiry. Portfolio holdings and daily securities valuations, transaction activity dating back eighteen months, cash balances, mortgage- backed paydown and valuation data, fail positions and various accounting and investment data are available. This access to holdings as well as current activity provides our customers with real time information about their accounts. It enables them to manage their cash more efficiently thereby managing their risk and maximizing their return on investments. INQUIRY FUNCTIONS Schedule Of Property: provides an on-line valuation of all account holdings with prices updated as of close of previous business day. Holdings can be viewed on either a trade date or settled date basis. Valuations combining multiple accounts are also available on-line. The following can be viewed through the Schedule of Property: Category Summary: summary of holdings and valuation data by the categories of temporary investments, bonds, convertible securities, preferred stock and common stock. Security Details: valuation data (i.e. cost, market, percent of market) for all holdings by category. Cost Lot Information: unit cost, tax cost (on average, high cost or low cost basis), capital gain/loss, individual dividends, price and date of price per unit, acquisition date, CUSIP number, ticker symbol. Bond Maturity Schedule: i.e., bond holding by year, showing par value, average life, coupon, and current yield. Temporary Investment Summary: short-term holdings (less than one year), by groups of days, showing average life and current yield. S&P Sector and Industry Summaries: summaries of common stocks versus S&P weightings. Security Characteristics -- for each common stock holding: twenty-five characteristics (e.g. Beta, P/E data, R2, EPS). Prior Day's Work: This schedule provides a classified statement of the pervious day's settled activity. Data is accessible in the form of summaries for multiple account relationships or in the form of detailed schedules for individual accounts. 10 of 20 • SECTION D RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE Summary: (for clients with multiple accounts) call up all accounts by specifying "closing balances," "accounts with overdrafts," "fails," or "pending items." Account Statement: summarizes prior day's activity by broad categories, i.e., trades pending, cash balances, fails, and free units. Each of these categories can be analyzed for specific detail. Clearance Inquiry: Through various formats, this function shows the real-time status of current day's trades. Clearance inquiry is primarily used to check the status of trades that are expected to settle today. Trades pending for future settlement can also be accessed. Account Activity Summary: a real time view of trade activity for today's settlement. Settled transactions and pending items are indicated as separate categories with full detail available by transaction. Cash Management: anticipates on either a summary basis (for multiple accounts) or on an individual account basis all events which are expected to occur on day of inquiry, i.e., trades, dividends and interest, maturities. Specific detail can be analyzed for certain categories. You would also use this function to determine available cash balances. Estimated Closing Balances, Summary: summarizes all events which are to occur today, showing the anticipated closing balance. Estimated Closing Balances, Detail: reflects opening balances, anticipated activity by category (i.e. dividends and interest, maturities, fails, trades), and estimated closing balances. Mortgage-Backed Securities: provides pool numbers, payable dates, original face value, current face value, current market value, interest payments and principal paydowns/payups for GNMA's, FNMA's and FHLMC's. Preliminary data is available prior to payable date. A cumulative current value is also given, totaling interest and principal payups/paydowns. Transaction/Security History: provides an on-line history of all transactions and cash balances dating back eighteen months. Security History: allows access to historical activity for a specific security by account or an alphabetical listing of holdings. Transaction History: provides cash balances, transaction activity and income and principal totals by account for any day in an eighteen month historical period. 11 of 20 • SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE Management Position Summarv: allows you to obtain a summary of all accounts that hold a particular security or type of security, or that hold securities maturing within the next 1 to 60 days. This function is particularly useful if a security is volatile, if a tender offer on a security is made, or if it is important to know your aggregate exposure to a particular issuer. Security List of Holders: By entering ticker symbol or CUSIP number, a list of holders is shown. Maturing Securities: details of all securities maturing within specified time frame (up to 60 days) In addition, access to historical financial information of all securities maintained within the Trust Company's data base is available. Price and Dividend Historv: Information is retained on-line for a period of four months. Price History: Close, High, Low, Bid, Asked, and Mean Prices for a specific date Dividend History: current Dividend Rate, Annualized Dividend, Ex Date, Record Date and Payable Date for the last dividend recorded in our database Category Summary: summary of holdings and valuation data by the categories of temporary investments, bonds, convertible securities, preferred stock and common stock. UPDATE/INPUT FUNCTION Trade Authorization: provides on-line instruction capability for same-day, as well as future day, trade settlements and cash transactions. It also allows customers to input their trades and affirm trades that are loaded into our system via the DTC/ID system. Trade information can be entered, held, changed or canceled. As clients are inputting directly into our system or ID trades are being loaded directly onto the pending file, errors are minimized and hands-off automatic upcoming settlement is maximized. In addition, transactions including upcoming capital changes can be monitored for accounts and issue, as well as broker information can be accessed. Non-Order Room Authorization: This screen is used to input trade information. Seven fields must be completed. If a CUSIP number is needed, or if a broker is unknown, appropriate databases can be accessed on-line to provide this information. 12of20 • SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE Monitor Authorization: views trades received from DTC via CCF, any trades input by user, or any trades input for you by the administrator. Also view capital changes on pending file. CUSIP Inquiry: allows you to input pertinent information about a particular security and obtain the CUSIP number. Broker Inquiry: allows you to input the beginning letters of a broker name and obtain a� specific broker and the broker mnemonic. This ability to input directly into our system provides total control for our customers of their data. The trading information can be entered as soon as it is known from the investment manager and the settlements can occur in a totally non-interventive environment. Promptness coupled with accuracy of reporting on-line can also be replicated in hard copy through a print capability for daily reports. We are prepared to demonstrate the AMS system to Municipality staff during the interview period. The cost is negotiable. Over the past 12 months, AMS has been operable 99% of the time. There were no technical problems with AMS in connection with change from 1999 to Y2K. 29. Does your firm have an existing interface program that is capable of electronically linking your firm's trust accounting data processing system with SymPro, and directly transferring cash balance data into individual SymPro investment files? (check oneJ ❑ Yes © No If "yes", please describe the interface program's capabilities with respect to SymPro and how long the interface program has been operational. Please also list three references from California public agencies that are currently using the interface program. I have had discussions with Mr. James Conner, President, SymPro, Inc. regarding the Municipality's needs. While an electronic interface is a future possibility based on the continued development of our on-line access system, we can provide the Municipality with cash balance data via a comma delimited ASCI file. The information could be sent to the Municipality for separate downloading either via an e-mail attachment or by overnight mail on a diskette (s). The cost for this service is negotiable. We invite the opportunity to facilitate and test this information transmission concept with appropriate Municipality staff and SymPro staff. Mr. Connor will be available for further consultations upon request. 13of20 • SECTION D • RFP NO.O0-01 : TRUST SERVICES QUESTIONNAIRE 30. Please describe the procedures that your firm would use to ensure that all of the Municipality's bonds are in compliance with their Indentures of Trust. Upon the completion for transfer of all accounts, we will set up a tickler file that will contain all of the requisite information, requirements and actions necessary in order to ensure compliance with all bond indentures and custody responsibilities. Both Sandee Parks and Dani Garcia will monitor the ticklers on an ongoing basis. As previously stated, Sandra Leess will also supervise the account administration and serve as a bacw up administrator in the case of vacations, illness, offsite training, etc. After the files are set up, we will schedule an appointment with appropriate Municipality staff to present copies and answer all questions. 31. Will your firm charge acceptance fees and counsel fees for the Municipality's outstanding bond issues if it becomes the successor trustee? (check one) X1 Yes ❑ No If "yes", please identify the charges in the Fee Proposal. Please refer to Section C for clarifying language. 32. Please describe the capabilities and the experience of your firm in providing all services that are listed under "Required Services" in this RFP. Bond Administration Serve as indenture trustee; fiscal agent; paying agent; defeasance escrow agent; tender agent; registrar; transfer agent; or depository agent for the Municipality's debt issues. As presented above, we are qualified to serve in the required capacities. Administer all bonds as specified in the Municipality's Indentures of Trust, Fiscal Agent Agreements, and Official Statements. This includes monitoring the performance of bond covenants. U. S. Trust is fully prepared to administer the City's bond transactions. We will never allow the bonds to be out of compliance with the indentures, Fiscal Agent agreements, Escrow Agreements and Official statements. Hold and administer the Debt Service Funds, which include capitalized interest accounts, and the Debt Service Reserve Funds, while providing for the investment of these funds at the direction of the City Treasurer's Office. As presented above, we are qualified to serve in the required capacities. 14 of 20 • SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE Disburse principal and interest from the Debt Service Funds to the bondholders on each payment date, pursuant to the terms of the bonds. As presented above, we are qualified to serve in the required capacities. Administer Dutch Auction Floating securities and Inverse Floating securities on a monthly basis. i Sandee Parks has experience with the Dutch Auction financing shown below, her role involved the receipt of the auction results, payment of the remarketing fee to the agent and ultimate payout to the bondholders. Once Sandee received the auction results, she verified the numbers for accuracy, transferred the information into a spreadsheet which was then disseminated to the Depository Trust Company for further payout to their participants. The securities paid out every 35 days. $243,639,425.05 CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY Insured Health Facilities Revenue Certificates of Participation (UniHealth America) 1993 Series A Provide investment and disbursement information to the Municipality's external auditor and to its appointed arbitrage rebate analyst, as requested. We are prepared to do so when called upon. Offer a variety of money market funds from mutual fund industry leaders, that could be used as part of an automated cash sweep program for individual trust accounts. We do so. See reponse#34 for detail. Clearing and Safekeeping Clear and safekeep all securities as the Municipality's agent on a delivery-versus- payment ("DVP") or on a receipt-versus-payment ("RVP") basis. U. S. Trust is capable of clearing and safekeeping all securities as authorized by California Code Section 53601. U.S Trust will safekeep and clear all securities as an agent of the Municipality on a delivery-versus-payment or receipt-versus-payment basis. Possess the capability to clear, at a minimum, United States Treasuries; Federal Agency securities; commercial paper; and bankers's acceptances. We do so. 15of20 • SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE Safekeep all of the Municipality's securities so they will qualify for a Governmental Accounting Standards Board ("GASB") 3, Category 1 rating. Alternatively, if the offeror does business with the Municipality as a broker/dealer, submit proof of insurance r a for all securities that it would trade with and clear su a coverage and safekeep for the Municipality (GASB 3, Category 2 rating). i i We are prepared to do so. Please refer to response 27 for added detail. Accept into safekeeping, on a free-delivery basis, all securities that the Municipality owns, at the time that the Municipality and the successful offeror begin a contractual relationship. Upon implementation of the services, securities already owned by the Municipality will be delivered into safekeeping on a free delivery basis. Trade Confirmations Provide the Municipality with confirmation documents on the receipt and delivery of securities or monies as they occur, identifying the asset description; purchase, sale, maturity, call or transfer date; accrued interest; total cost; par value; coupon rate; and purchase yield, as may be applicable to the transactions. U.S. Trust will provide confirmation documentation to the Municipality for each receipt and delivery of securities or funds identifying asset description, purchase, sale, maturity, call or transfer date, accrued interest, total cost, par value and eoupon rate as may be applicable to the transactions. Such documentation will be presented in the Municipality's monthly statements, on-line a day after the transaction and via our AMS System immediately. Mail confirmations no later than one working day after the transaction has occurred. An example of a "hard copy" trade confirmation (also known as a Security Advise) is presented in Section VIII. Such a confirmation could be sent to the Municipality one working day after the transaction has occurred. Most of our clients either utilize our AMS system (see Response #28) for iminediate trade confirmations or, utilize our website for 24 hour delayed confirmations. On-Line Trust Reports Provide the Municipality with on-line access to a client-based proprietary computer system for retrieval of trust account information and reports that describe assets, cash receipts, and disbursements; each transaction; and each asset. 16of20 i • SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE On line access via the Internet is available to the Municipality at no charge. We can demonstrate this access upon request. In addition, U.S. Trust's AMS System is available to the Municipality for a negotiable charge. See Answer 28 for further detail. Make such statements available by no later than five working days following month- end. Report trust assets at cost and at market value at month-end. fP U.S. Trust will provide a monthly statement of assets and cash receipts and disbursements, detailing each transaction during the month and describing each asset completely. Assets shall be reported at cost and market values as of the end of each month. The monthly statements must be postmarked no later than five working days following month end. Failed Trades Notify the Municipality, by telephone, by no later than 11 :30 p.m. Pacific Standard Time of any failure to deliver or to receive securities or monies that underlie investment transactions. U.S. Trust can notify the Municipality by phone no later than 11:30 a.m. Pacific Standard Time or Pacific Daylight Savings Time (whichever is appropriate) of any failure to deliver or failure to receive securities or funds in connection with any transaction. All broker/dealers have until as late as 12:30 p.m. PST/PDT to reclaim sales and purchases. The Municipality might consider a later notification time. Collect and Transfer Interest Collect and receive interest income, maturity, and sale proceeds for securities that the offeror holds for the Municipality, and transfer such monies, if required, to the Municipality's main checking account on the same day. We are prepared to do so subject to the collection of the proceeds. Wire Transfers Initiate and receive wire transfers on behalf of the Municipality in accordance its instructions. We are prepared to do so. 33. Please describe any "Optional Services" that you believe would be of benefit to the Municipality. Any associated costs should be itemized in the Fee Proposal. 17of20 • SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE U.S. Trust is qualified to take responsibility as manager for bond proceeds and the Municipality's other assets. What follows is a list of public agencies for which we manage bond proceeds and other assets: Alameda Corridor Transportation Agency (Los Angeles County, CA) Chicago Heights Fire & Police (Illinois) City of Petersburg (Alaska) City of Winston-Salem (North Carolina) County of Henrico (Virginia) Foothill/Eastern Transportation Corridor Agency (Orange County, CA) ➢ Ketchikan Gateway Borough (Alaska) San Diego Area Local Governments a.k.a. SANDAG (San Diego) The fees vary according to the portfolio size and investment program being utilized. Further information on our specific capabilities and programs are available upon request. U.S. Trust can act as dissemination agent. Fees are presented in Section C. 34. Please list and describe the money market funds that your firm offers as part of its automated cash sweep program. Please provide a breakdown of the basis points that the mutual fund and your firm would charge for each fund. We employ the use of three selected Federated Funds as our sweep vehicles. They are as follows: Prime Obligations Fund The fund seeks to provide investors with a high level of current income, high quality portfolio and liquidity. The fund pursues its objective through corporate money market securities including commercial paper, repurchase agreements, variable rate instruments and bank instruments. All securities are domestic income sourced only. The fund is currently rated AAA from all four credit rating agencies: Standard & Poor's, Moody's, Fitch and Duff& Phelps. The total investment advisory fee for the fund is equal to 45 basis points of the fund's average daily net assets. U.S. Trust receives 25 basis points of the stated advisory fee. There are no transaction fees attached to the use of the fund. Further information including a prospectus is available upon request. Treasury Obligations Fund The fund seeks to provide conservative investors with a high quality portfolio, current income and relative safety. The fund pursues its objective through U.S. Treasurys and repurchase agreements backed by U.S. Treasurys. The fund is currently rated AAAm by Standard and Poor's and Aaa by Moody's. 18of20 J • SECTION D • RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE The total investment advisory fee for the fund is equal to 45 basis points of the fund's average daily net assets. U.S. Trust receives 25 basis points of the stated advisory fee. There are no transaction fees attached to the use of the fund. Further information including a prospectus is available upon request. Automated Government Cash Reserves The fund seeks to provide conservative investors with a high quality portfolio, tax- advantaged income and relative safety. The fund pursues its objective through U.St Treasurys and government agency securities. The fund is currently rated AAAm by Standard and Poor's and Aaa by Moody's. The total investment advisory fee for the fund is equal to 60 basis points of the fund's average daily net assets. U.S. Trust receives 25 basis points of the stated advisory fee. There are no transaction fees attached to the use of the fund. Further information including a prospectus is available upon request. 35. Why should your firm be retained as the Municipality's trustee? Please elaborate on any competitive advantages that the Municipality would gain by selecting your firm, as opposed to other firms. Unlike most other institutions offering corporate trust services, U.S. Trust is not a money center bank. Because of this, our corporate trust customers need never be concerned with conflicts of interest arising out of multiple relationships and are treated to a level of service generally not available from an institution where corporate trust is a sideline. The objective of U.S. Trust is to facilitate long-standing relationships with our clients. We invite the opportunity to work closely with Municipality staff and all other professionals involved with the bonds and custody accounts. We pledge to maintain the relationship with the Municipality by having regular contact with Municipality staff including periodic in-person meetings. We will assist the Municipality's professional consultants in obtaining information as needed and/or requested. Our philosophy regarding our role as trustee, fiscal agent, escrow agent and custodian are that of consultant and team member. Our clients know that we are always available to promptly assist them when called upon. When we see issues that our clients should be aware of, we initiate the call. We view ourselves as quasi-members of our client's Finance Departments. Regular contact and periodic visits are a must. This insures the familiarity that helps our relationships go smoothly. The success of our business is not based on the number of transactions we do but by the successful relationships that grow into new ones based on performance, service and reputation. 19of20 l • SECTION D • RFP NO.00-01 : TRUST SERVICES QUESTIONNAIRE 36. Have any of your firm's public sector clients claimed, in writing, within the last 12 months, that your firm was responsible for any investment losses? (check onel ❑ Yes ®No If "yes", please describe each matter briefly. 37. Has your firm been subject to any litigation, arbitration, or regulatory proceedings, either pending, adjudicated, or settled, within the last 12 months, that involved allegations of improper, fraudulent, disreputable, or unfair activities related to the purchase, sale, or settlement of securities on behalf of institutional clients? (check one) ❑ Yes © No If "yes", please describe each matter briefly. 38. Has your firm been subject to a regulatory, state, or federal agency investigation within the last 12 months, for alleged improper, fraudulent, disreputable, or unfair activities related to the purchase, sale, or settlement of securities? (check onel ❑ Yes ©No If "yes", please describe each matter briefly. 20 of 20 STATE STREET SECTION C RFP NO. 00-01: FEE PROPOSAL SERVICES ESTIMATED ANNUAL UNIT TOTAL DIRECT VOLUME PRICE FEE PRICE Acceptance Fees(Conversion) $6,650.00 Counsel Fees(Conversion) Included Trustee Fees $20,750.00 Fiscal Agent Fees $7.500.00 Paying Agent Fees Included in Annual Fee Registrar Fees Included Transfer Agent Fees Included Defeasance Escrow Agent Fees No Charge Depository Agent Fees If Applicable,$300.00 Tender Agent Fees Included in Trustee Annual Fee for Deal#8 Letter of Credit Draw Charges Included in Tender Agent Fee for#8 Bondholder Account Maintenance Charges Included in Annual Fee Wire Transfer Charges See Ancillary Schedule Redemption Charges See Ancillary Schedule Security Trade Charges See Ancillary Schedule Collateral Maintenance Charges See Ancillary Schedule Out-of-Pocket Charges Billed At Cost Itemize All Other Expenses Below: TOTAL ANNUAL FEES $34,900.00 See attached spreadsheet with Bid Specification Breakdown. NOTE: The transaction underlying this proposal, and all related legal documentation, is subject to review and acceptance by State Street in accordance with its policies and procedures. Should the actual transaction materially differ from the assumptions used herein,State Street reserves the right to modify this proposal., In the event that the subject transaction fails to close for reasons beyond the control of State Street,the party requesting these services agrees to pay State Street's acceptance fees,legal fees and out-of-pocket expenses. This proposal is a confidential document and should not be duplicated and/or distributed. 042-copd Hr o � LR N w = us Y q N < m ¢ q q q q q y x m q q y x 9 m 0 rCr rmr rmr F N LL Win u Oy O o Y 8 w Oq N g tli W w u Q c 3I� Z R m m m m Z Z 2 Z Z Z ccm Z Q Y O 0 0 o S E g S o S S o 0 0 O fV 8 N y$ �L O n O O N N q nq m Lj � D W W W W W c m U U U U m m m m m w t LL LL LL LL Y Y O U O m _Y a A m m 1 C 25 m `m li IL li IL IL IL lL lL IL Y 7 x LL D U Z 2 Z Z Z Z Z Z Z Z D O a` m Q Z Q Z m to fo a: m m Cc 3 QC 3 L Q L Q LL LL 2 m o U 60 °c morn m o mmm '' 0 0 corn O M 6 = Z5 Z � m � Z � � Z g20 � < � ZDZ m m .� m > m mm > vm vmc U yy c m ¢m mmm mQ < _C _ It0c m Q m ¢ yE Q >m O E 2 O m o m 0 C V O) m d m OO m O mo mG O O - O O mUo Y O < d m o cjm Um ❑LLUDYC Q 0 �a mo o0 cc ommc9mroo -Nd < Zo o OFo a m m m m N c m i O OE EN mO m m mQ : m m m aC A 0 w � w_ W u [ d O O O l Y w w w r U a d Z Z Z Y O 0 0 0 0 a m N W (9 f9 N O d r Y W W W C C m m m W � Y d O V O O7 d a m — Y & ¢ 8 LK 8 8 c x LL _T d U � a U d 2 Z Z U O a d q u w LL Q Q y V ~ ~ LL a A Y O m O t m d O p W C C7 Z Z _p Y A J j m > M. ` .. na o v m4d1 O m —r= O C d N C U O C —N O ¢ m O d m 0 C m c ;Q d m `d m C j d m F day UoamNc� Ei °i o x a y m t t o m voi m min m° Fm oa � m Ey m d m m m a Q+ N a a M m A d O • ANCILLARY FEES INVESTMENT FEES(per transaction buy or sale): STATE STREET Book-Entry Delivery $ 65.00 Physical Delivery $ 100.00 Competitive Bid-3 brokers $ 25.00 pa bid process Money Markel Funds Money Market Funds with compensating fees to SSB No Charge Reinvestment of income $ 35.00 per remipt,per trust account Reconcilement of Conf rm ition Statements $ 25.00 per statement Investment ContractioTlexible Repurchase Agreements: Document review-No Collateral $ 750.00(includes counsel review) Document review-Collateral $1,000.00(includes counsel review) Income verification,collection and reporting S 35.00 per posting,per trust account Reconcilement of Confirmation Statement $ 25.00 Maintenance of Collateral S 35.00 per delivery or receipt Mark to Market $ 35.00 per account,per valuation Forward Float Contract - S 750.00(includes counsel review) Legal Opinion,if required $1,000.00 FUND DISBURSEMENT FEE: S 15.00 per requisition Additional checks S 3.75 per payee WIRE FEE(Investment-related wires at no charge): $ 20.00 each REGISTRAR&PAYING AGENT RELATED SERVICES Non-Book Entry Registration Fee: Issuance and Transfer(each) $ 2.00 Annual Maintenance of Registered Holder Accounts $ 6.00 per account Interest Payment $ .50 per check issued Principal Payment: At maturity $ 150 per certificate Called prim to maturity, S 3.50 per certificate Preparation of Initial Notice and Lottery Calls: $ 500.00 Preparation of each Subsequent Notice and Lottery Calls: $ 250.00 Bondholder List: $ 60.00 per list Tendered Certificates: Book-Entry Bond (each) S 25.00 Physical Bond(each) S 50.00 Postage: Bondholder Notices At cost Monthly Statement: General Obligation Bond Issues $ 15.00 annually per recipient All Others $ 30.00 annually per recipient Audit Confltion: $ 25.00(plus statement reproduction costs) Accounting Statements:(two recipients at no charge) S 66.00 annually,including postage(in excess of two) UCC FEES: Copying S 5.00 CSC Networks/Prentice Hall - $ 100.00 Continuation Filing S 175.00 MISCELLANEOUS FEES: Microfiche Copying Fee: $ 2.00 per page($25 minimum) Fax (five pages at on charge): $ 2.00 per page(in excess of five) Agreement Copying: $ .20 per page ($25 minimum) Statement Reproduction: S 2.75 per suffix,per accounting period EXTRAORDINARY SERVICES: Billed at cost OUT-OF•POCRET•EXPENSE: Billed at cost Dared 0911511999 STATE STREET SECTION D RFP NOM-01: TRUST SERVICES QUESTIONNAIRE 1. Firm Name: State Street Bank and Trust Company of California,N.A. 2. Contact Address: 633 West 5`s Street, 12`"Floor,Los Angeles, CA 90071 3. Contact Personnel: Lynda A. Vogel Account Representative Supervising Manager Name: Paula Oswald Name: Lynda A. Vogel Title: Vice President Title: Senior Vice President TEL: (213) 362-7338 TEL: (213)362-7399 TEL: (800) TEL: (800) 4. Please provide resumes for the account representative, the supervising manager, and any other employees who would be assigned to the Municipality's account. Please identify the current average trust client caseload for each employee. Primary Contact: Ms. Paula Oswald, Vice President and Account Manager, Los Angeles Before joining State Street, Paula's experience spans 17 years with several major California corporate trust providers. For the last 7 years, Paula has served as Relationship Manager for a large book of corporate and municipal issuers at a subsidiary of a major east coast bank. She was responsible for managing strategic accounts representing $1.2 billion in outstanding debt. She was the point contact position for clients within the bank for resolution of highly complex business issues and client education on financial and compliance terms. At State Street, Paula is responsible for the overall management and administration of a diverse account base in excess of$4.0 billion principal amount. Paula received her B.S. in Business Administration from California State University, Long Beach. Phn: 213-362-7338 Fax: 213-362-7357 Email: poswald@fmg-statestreet.com The current average trust client caseload for Paula Oswald is 163 deals. 042-coed STATE STREET Srrviny In i,i,u,i,mn nrc„on NpMxm Back-up Office Contact: Mr. Stephen Rivero,Vice President and Account Manager, Los Angeles Before joining State Street in 1988, Steve served as Senior Administrator for seven years at a major west coast bank. He was responsible for a diversified account base, in excess of $2 billion principal amount, consisting of corporate debentures and municipal bonds, with emphasis on highly active mortgage issues and complex hospital bonds. Stephen is involved with the ABA as well as a member of the Western Securities Transfer Association (WSTA). At State Street, Steve is responsible for the overall managemenq and administration of a diverse account base in excess of$4.5 billion principal amount. F Steve received his B.A. in Political Studies from Pitzer College, Claremont, California. Phn: 213-362-7345 Fax: 213-362-7357 Email: srivero@statestreet.com The current average trust client caseload for Stephen Rivero is 221 deals. Cash Administrator: Ms.Madeliena J. Hall,Administrator,Los Angeles Maddie joined our State Street team in 1993. Before joining State Street, Maddie worked as a Data Entry Clerk perforating various office duties for Transamerica Life Insurance. As a Senior Corporate Trust Administrator at State Street, Maddie manages all aspects of Investment Agreements including verification of interest income, tracking of principal drawdowns and ensuring receipt of Investment Confirmations. She also monitors and actively pursues all items necessary to comply with financing documents for all Bond Issues. Maddie received her B.A. in Law & Society from University of California, Santa Barbara. Phn: 213-362-7340 Fax: 213-362-7357 Email: mhall@statestreet.com The Los Angeles office is staffed with five experienced trust professionals designated as Account Managers. Averaging 15 years experience in the trust industry, our Account Managers combine technical proficiency with creativity in developing innovative solutions to enable our clients to manage their capital programs that often utilize complex debt structure and a host of derivative securities such as swaps, Ribs and Savrs, and inverse floaters. The Account Manager (AM) works directly with the financing team including the Bond Counsel, Issuer, Financial Advisor and Underwriter to achieve a successful closing of the financing. Between the five Account Managers in the Los Angeles office, each maintains their assigned relationships but is the designated back up to another AM and fully acquainted with those accounts as well. This provides State 042-copd STATE STREET Street clients with unparalleled continuity and quality of service even during the absence of their primary Account Manager. The relationship with our clients is further strengthened by our team of Administrators, who are responsible for the day-to-day activity associated with your trust account, (e.g. investments, debt service monitoring, disbursement requisitions and normal account administrative duties). Our Administrators report to and are managed by a State Street Officer, providing the quality control of our service. One of the primary benefits that the client base of State Streets' Los Angeles office enjoys is the convenience and ease of transacting with a large institution organized on a regional or decentralized model. This allows the client to deal only with the local Account Manager or supporting Administrator. Through this single point of contact the client can access the trust accounting system, referred to as the SEI system, track debt disbursements, and administrative issues such as compliance, cash management, and account analysis. This system also offers on line capabilities for an additional cost, to all clients, and is of particular interest to clients where we administer several debt issues. There are only a few functions that are centralized in Boston and those include security processing, trade settlement, and bond payments. These centralized functions obviously allow greater security and reconcilement accuracy for quality control purposes, thereby, further enhancing the clients experience with State Street. The Account Managers and the Administrative Supervisor report directly to Lynda Vogel, Sr. Vice President and Managing Director of State Street California. As the on-site manager, she is active in monitoring all legal and regulatory requirements of the California Trust Company. Her role is to coordinate, control and manage all of the activities of the trust department. State Street takes pride in being a pro-active member of the financing team. The Account Manager assigned to the client relationship along with Trustee's Counsel will work closely with all of the team members to review the Indenture and associated transaction documents in order to achieve a quality-working instrument. State Street approaches each transaction within the context of the unique requirements of each relationship. This often is determined by the level of market experience of the issuer and their staff. State Street will work directly with the issuer's assigned staff to ensure a complete understanding of the Indenture and the specific responsibilities of the trustee and the issuer. 5. Please provide five references from California cities that have an established relationship with the account representative who is listed in Question 3. Indicate: (a) name of city; (b) contact person; (c)address; (d) telephone number; and(e)length of relationship. We offer the following representation of several accounts that Paula Oswald handles at State Street Bank and Trust Company of California. 042-copd STATE STREET — _ kmg aan„em„n mrcvuNVo,m-mr City of California City City of Pico Rivera Mr. Terry Hicks Randy Rassi Finance Director Director of Financial Management 21000 Hacienda Blvd. 6615 Passons Blvd. Califortia City, CA 93505 Pico Rivera, CA 90660 (760) 373-8661 (310) 801-4391 State Street Customer Since 1988 State Street Customer Since 1989 County of Riverside City of San Jose Linda Thomason Ms. Julia H. Cooper Assistant Finance Director Debt Coordinator 4080 Lemon St., 12th Floor 801 North First Street, Room 227 Riverside;CA 92501 San Jose, California 95110 (909)955-1130 (408) 277-4695 State Street Customer Since 1990 State Street Customer Since 1991 City of Needles Ms. Virginia Tasker Director of Finance 817 3rd Street Needles, CA 92363 (760)326-2115 State Street Customer Since 1995 6. Please provide two references from California cities that no longer have a relationship with your firm. Indicate: (a) name of city; (b) contact person; (c) address; (d) telephone number; and(e) length of relationship. Please explain why your firm no longer manages these accounts. State Street is proud to state that none of our public agency relationships have terminated their service relationship over the past three years. 7. Please identify the number of professionals and support staff that your firm has in the corporate trust office that would serve the Municipality. State Street's Corporate Trust department in Los Angeles has 20 dedicated professionals who are supported by an additional 550 professionals located in Boston, New York, Hartford and St. Louis. 8. How many of the employees in Question 7 devote a majority (>50%) of their time to municipal debt administration? Of the 20 individuals located in the Los Angeles Corporate Trust department, 100% devote a majority of their time to municipal debt administration. 042-copd STATE STREET 9. What percentage of time does the account representative who is listed in Question 3, devote to municipal debt administration? The current book of business for account officer,Paula Oswald,consists of 53%municipal debt administration. 10. What is your firm's fiduciary classification?(check all that apply) ❑ Bank—National Association OO Trust Company-National ❑ Bank—State Association ❑ Trust Company- State ❑ Affiliate of Investment Bank ❑O Limited Purpose Trust Company ❑ Affiliate of Foreign Bank O Affiliate or Subsidiary of a Bank Holding Company ❑ Joint Venture with Another Firm ❑ Other(describe) 11. Please describe your firm's ownership structure. If your firm is owned by a parent bank holding company or corporation, then please identify that entity's name; its net capitalization, and where it is headquartered(city and state). State Street Bank and Trust Company of California, N.A., established in 1986, is a wholly owned subsidiary of State Street Bank and Trust Company, headquartered in Boston. The Regional National Associations and our Boston Parent are part of State Street Corporation. Entity Name: State Street Corporation Headquarters: 225 Franklin Street Boston,MA 02110 Net Capitalization: Net income for the full year 1999 was$619 million. 12. Where is your firm headquartered(city and state)? Divisional Headquarters State Street Bank and Trust Company 2 Avenue De Lafayette, 6's Floor Boston, MA 02111-1724 042copd STATE ST 3rwf REET $edrn91n31lurumnllnrc Wd Mnbe' 13. Based upon currently available information, is your firm a possible merger or acquisition candidate?(check one) ❑ - Yes ❑O No If"yes", please discuss and identify the possible merger partner or acquiring organization. State Street is committed to growing its corporate trust business to enhance ott geographic diversification and further leverage our competitive advantages by addingf market share and operational scales of efficiency. Our strategic acquisitions in the past five years include the Corporate Trust businesses of Bank of New England, Connecticut Bank and Trust Company, BayBank,Bank of Boston, Citibank Municipal Trust and Agency business, Mercantile Bancorporation's Corporate Trust and Agency business and Fleet Financial Group's Corporate Trust. While growth is an important element for any business and State Street does intend to grow its corporate trust portfolio in California as well as nationally, we do not emphasize growth for growth's sake alone. State Street strategically balances the growth of its corporate trust business against our high standards of client response, efficiency of service and return on investment. If our growth exceeds our ability to service our clients' needs we lose their confidence and future business. When a trust service provider 'buys' the business with fees below the cost of delivering service they have growth but without the return on investment required to employ and keep qualified experienced staff. Much of the consolidation of the trust industry over the past several years is a direct result of unbalanced growth without reasonable profitability. State Street maintains a long-term view of the trust services market with the goal of controlled sustainable and managed growth. 14. What federal or state agency supervises or examines your firm? Office of the Comptroller of Currency (OCC), Regional National Association, Federal Reserve Bank, and our Parent company in Boston. 15. What is the total amount of your firm's combined capital (exclusive of borrowed capital) and surplus as of 31 December 1999? The bank holding company's total risk-adjusted capital is $3.1 Billion. The bank holding company's total risk-weighted assets are $21.2 Billion. 16. What is your firm's Tier 1 capital ratio(to risk-adjusted assets)as of 31 December 1999? Capital Base—December 31, 1999 Capital urrent Ratios Current Requirement I Re uirements Tier I Capital Ratiol 14.7% 1 6% 042-copd STATE STREET _ _ $rmng lnfl.iulnnnl lnvr,lorSNrvMwvlr During 1992, bank regulators adopted five capital categories based on capital ratios and other factors, which are applicable to banks for certain regulatory supervisory purposes. These categories range from "well capitalized" to "critically undercapitalized." The "well capitalized" category requires a bank to maintain a minimum Tier 1 risk-based ratio of 6%. State Street manages and monitors its capital ratios to assure that they exceed the minimum standards for"well capitalized." 17. What is the total dollar amount of outstanding municipal bond principal for which yours firm provides corporate trust services? The total dollar amount of all outstanding boj principal (government and non-government)for which your firm provides corporate trust services? `Corporate Trust Division acts as Trustee and Paying Agent for more than $542 billion of outstanding bonds. Over$62 billion of our trusteeships are mortgage-backed securities; the remainder are CLOs, CBOs, medium term notes, leveraged lease financing and straight corporate and municipal debt. 18. Does your firm have a corporate trust office that is physically located within the State of California?(check one) 0 Yes ❑ No If"yes",please identify the location, the business hours, and how long your firm has been providing corporate trust services in California. Location: State Street Bank and Trust Company of California, N.A. Corporate Trust 633 West 5`s Street, 12'h Floor Los Angeles, CA 90071 Business Hours: 8:30—4:45 pm Length of Service: 13 years providing trustee services in California 19. Is your firm's corporate trust administration centralized at one physical location? (check one) 1] Yes ❑ No If"yes", please identify the city and state State Street Bank and Trust Company of California, N.A. Corporate Trust 633 West 5`s Street, 12`s Floor Los Angeles, CA 90071 042-copd man STATE STREET ♦ — Xnin9/n,llulmnnllnrc>lOn Ww MnxM , 20. Does your firm own a securities clearing ,operation or does it subcontract that responsibility to another firm?(check one) ❑O - Own ❑ Subcontract If"subcontract",please identify the subcontractor and how long your firm has done business with the subcontractor. clearing operation located(city and state)? What is the time zone? 21. Where is the securities clea g p ( ty ) What are the "cut-off' times for "cash" trades, corporate securities, Treasuries, Agencies, and banker's acceptances? Clearing securities is done through DTC, Federal Reserve Bank, and PTC. If it is a physical security it can be cleared through our vault in Boston or DTC's vault in New York. DTC, FRB and PTC have established a 3:00 pm Eastern Standard Time deadline. 22. Which of the following investment instruments is your firm capable of clearing?(check appropriate choices) 1] T-Bills El Certificates of Deposit px T-Notes 0 Commercial Paper p T-Strips ❑O Corporate MTNs and Bonds ❑O Banker's Acceptances ❑O Mortgage-Backed Securities ❑x Repurchase Agreements ❑O Agencies(specify) 23. Please describe your firm's policy regarding failed transactions and its method of compensating customers in the event that your firm is at fault. Please provide a description of the compensation formula and the methodology that is used to calculate compensation. State Street Bank is a member of the US Council on International Banking (USCIB) and the National Council for Uniform Interest Compensation (NCUIC) and is first governed by USCIB. As such, any claims for compensation would be considered in light of the rules promulgated by these organizations. 24. How many and what percentage of your securities transactions failed last month? During the last 12 months? Our settlement rate is very high. Approximately, less than 1% of our total volume during any given month represents failed trades. 042-coed STATE STREET ,� — Amng m nweoem m..,on wo,wao. 25. What is the limit on your firm's errors and omissions insurance policy and who is the insurance carrier? OurMemorandum of Insurance is attached to this proposal as an Exhibit. 26. Where is the vault facility in which your firm would hold the Municipality's physical securities(street address, city and state)? State Street Bank and Trust Company State Street Bank and Trust Company,N.A. 225 Franklin Street 61 Broadway Boston,MA 02110 New York,NY 10006 27. Please describe how your firm would ensure that all of the Municipality's securities that it holds in trust will qualify for a GASB 3, Category 1 rating. Alternatively, if your firm does business with the Municipality as a broker/dealer, please identify and describe the exact amount of its insurance coverage with respect to securities that it trades and also holds it trust(GASB 3, Category 2 rating). Securities that we hold are in Book-Entry form and are held in our nominee of State Street Bank as Trustee. The securities are then booked on our trust accounting system in the name of the City of Palm Desert. State Street has no broker/dealer relationship with the City of Palm Desert. However, if established, State Street has suffice insurance to support our activities as broker/dealer. 28. Please identify and describe your firm's trust accounting data processing system; its reporting capabilities; how it can be accessed on-Iine; and how often, over the last 12 months, it has been inaccessible because of technical problems. The SEI Trust 3000 system is used to perform trust accounting. The Trust 3000 SMAC (Security Movement & Control) subsystem enables Corporate Trust to monitor and control the movement of securities in and out of the vault, the Federal Reserve, and The Depository Trust Company, as well as other depositories and custodians. The SMAC product is fully integrated with SEI's Trust 3000, Trade 3000, Deplink, Custodylink and Custodian Trade Interface products, all of which support securities-related activities, and provide automated interfaces with all major depositories. Trades Trade instructions are received by Administration and are entered into the Trade 3000 system as either open or executed orders. Open orders are automatically routed to the appropriate trading desk for executions. Executed trades automatically update SMAC, which is then used by the Operations area for settlement processing. The SEI SMAC system is fully integrated with the Deplink product, which provides an automated communications interface between The Depository Trust Company(DTC) and 042-copd STATE STREET _ _ $emng lm Llu/nunlln.p lOn Nbp�9r' Trust 3000. This includes automated confirm/affirm processing, settlement updates, dividend/interest postings, and position reconciliation, which are performed daily. The SEI SMAC system also interfaces with State Street's internal SMAC system, and supports the automated processing of non-DTC trades, including securities held at the Federal Reserve and other depositories and custodians, thereby eliminating the manual, duplicate entry and transmission of trade instructions. Interest and dividend payments and actual trade settlements are automatically updated on the trust accounting systeM through this interface. Daily position reconciliation files are also produced. t Over 61,000 securities transactions are processed on a monthly basis by the Operations Area, which supports Corporate Trust. Of all trades settled at The Depository Trust Company, 85% of those trades are processed in a fully automated manner through the Deplink interface with the ID system. Contractual Settlement Accounting On contractual settlement date, the client is credited with proceeds from security sales and debited for the cost on security purchases. The security side is settled upon notification of actual settlement in the local market. Reporting in this manner provides the client with the benefits of contractual cash reporting, as well as an awareness of the actual status of the transaction in the local market. Through ongoing analysis, research, and stringent operating procedures, State Street strives to minimize exceptions to the parameters of contractual settlement accounting. We work very closely with local market participants to keep abreast of market events that may impact settlements or the finality of payments. Through these efforts we seek to avoid reversing previously posted transactions; however, where circumstances occur that are beyond our control, State Street may need to reverse a previously posted transaction, or adjust relevant interest information accordingly. In those cases where a client is entitled to interest compensation due to State Street's negligence, State Street will compensate the client accordingly. DepUnk Overview SEI's Depository link System (DepLink) provides an automated accounting and communications link between your bank and a custodian bank or depository. Depository Link is fully integrated with your existing TRUST 3000 systems, including Security Movement and Control (SMAC), and works in conjunction with the DTC Interactive Institutional Delivery (ED) System. For all of your DTC-DD-eligible assets, Depository Link simplifies the process of affirming trades and creating SMAC pending items. Trade information can be pended directly to the SMAC System on a daily basis, so your account data is always current. Depository Link also automatically processes the settlement of these trades and posts any income received to the trust account. 042-coed STATE STREET � _ Srmny msne nnem m.ninn lVorM.w Remote Access One of State Street Corporate Trust's largest strategic technology initiatives for 1998 was the implementation of a new trust accounting system. On September 8, 1998 State Street completed the integration of SEI's TRUST 3000 trust accounting system in a service bureau environment. Client access to account information is now available through your office PC and modem, by dialing in through CompuServe. The Client has access to on-line, real-timt information for their accounts, such as transaction history, cash balances, anticipated casff projections, asset holdings and pending trades. We will work with clients individually to understand their business needs and computing -environment and to find the right delivery product for them. State Street has very strict security requirements for all systems. Clients will only be able to access their own accounts and will not have the ability to execute transactions. Trust 3000 Availability Statistics Trust 3000 availability during the hours of 9 am and 5 pm are as follows: Jan 2000-99.69% Dec 1999-98.99% Nov 1999 - 98.91% Oct 1999 - 99.38% In addition to system availability, State Street also tracks database specific outages of longer than 15 minutes and experienced NO outages during the 4 months listed above between the hours of 9 am and 5 pm greater than 15 minutes. 29. Does your firm have an existing interface program that is capable of electronically linking our rm's trust accounting data processing stem with S mPro and directly trans errin Y .fi 8 P gsY Y Y f g cash balance data into individual SymPro investment files?(check one) El Yes ❑ No If"yes",please describe the interface program's capabilities with respect to SymPro and how long the interface program has been operational. Please also list three references from California public agencies that are currently using the interface program. State Street offers information in the form of two data files: Transactions and Positions. Once scheduled, one or both of these files can be downloaded by the Client on a scheduled basis (daily, weekly, monthly). The download would be accomplished by the Client dialing in via CompuServe to access the State Street Mainframe, where files would reside. To implement this option, the client must execute the "Data Access Services 042-copd STATE STREET Agreement," at which time a systems request will be initiated in order to create the client- specific file(s). It is then the responsibility of the Client to parse and work with the data, within their in-house technology group, to use the data as needed. We can also consider reformatting the file, however, there would be an additional cost for the development, as well as an ongoing maintenance fee. In order to determine if this is feasible and able to be scheduled within our Product Management Department on an acceptable timeframe, the client would need to provide us with the file layout requirements and the code translation requirements for the development work. At this time, none of our California clients have elected to use the interface program. However, we have included three out-of-state references for your review. Maine Health &Higher Educational Facilities, Michael Goodwin, Phn: 207-622-1958 Boston Water& Sewer,Luciano Petruzziello, Phn: 617-737-9112 City of Kansas City, Missouri, Willie Romon, Phn: 816-513-1031 30. Please describe the procedures that your firm would use to ensure that all of the Municipality's bonds are in compliance with their Indentures of Trust. State Streets' proprietary tickler system allows for our client transactions to be aggressively monitored by senior management. Once Indentures of Trust are received, the assigned account officer extracts all compliance items that are date sensitive and enters them into our tickler system. Subsequently, the system can be checked by back-up account officers, our administrative team and senior management. Ticklers are managed on a daily basis and are moved between open and complete status,in order to ensure continual upkeep. 31. Will your firm charge acceptance fees and counsel fees for the Municipality's outstanding bond issues if it becomes the successor trustee?(check one) ❑O Yes ❑ No If"yes", please identify the charges in the Fee Proposal. 32. Please describe the capabilities and the experience of your firm in providing all services that are listed under "Required Services" in this RFP. The City has identified under the heading"Required Services functions that any competent Trustee will perform. 33. Please describe any "Optional Services" that you believe would be of benefit to the Municipality. Any associated costs should be itemized in the Fee Proposal. All services provided by State Street are itemized in the Fee Proposal. 042-copd STATE STREET — $,rving In Viulnnnl lnrnlgl NbrM.G,' 34. Please list and describe the money market funds that your firm offers as part of its automated cash sweep program. Please provide a breakdown of the basis points that the mutual fund and your firm would charge for each fund. State Street offers several money market funds: Federated Automated Government Cash Reserves - Automated Government Cash Reserves seeks current income consistent with stability of principal and liquidity. To this end, the fund is invested in U.S. Treasury and federal agency securities. No repurchase agreements. Fund rated in the highest rating categories by Moody's and Standard & Poor's. Rate changes daily. Interest paid monthly. No minimum/no sweep fee. 30-Day Net Yield is 5.19%. Federated U.S.Treasury Cash Reserves -U.S. Treasury Cash Reserves seeks current income consistent with stability of principal and liquidity. To this end, the fund is invested in U.S. Treasury securities maturing in 13 months or less. No repurchase agreements. Fund rated in the highest rating categories by Moody's and Standard & Poor's. Rate changes daily. Interest paid monthly. No minimum/no sweep fee. 30-Day Net Yield is 5.19%. Federated Treasury Obligations Fund -Treasury Obligations Fund seeks to provide current income consistent with stability of principal. To this end, the fund invests in short-term U.S. Treasury obligations, and may also invest in repurchase agreements collateralized by U.S. Treasury securities.. Fund rated in the highest rating categories by Moody's and Standard & Poor's. Rate changes daily. Interest paid monthly. No minimum/no sweep fee. 30-Day Net Yield is 5.19%. State Street's Insured Money Market Account -A money market deposit account that meets the requirement of Section 204(d)(1)Federal Reserve Regulation D. The Interest Rate is equal to the most recent 7-day yield of the Donoghue Money Fund average for government funds less 40 basis points. Interest paid monthly. No minimum/no sweep fee based on net assets invested. 30-Day Net Yield is 5.30%. 35. Why should your firm be retained as the Municipality's trustee? Please elaborate on any competitive advantages that the Municipality would gain by selecting your firm, as opposed to other firms. State Street Corporation's primary focus is servicing financial assets for a worldwide base of institutional clients. Corporate trust is a core business line. This focused strategy enables State Street to devote our resources to developing leading-edge systems for securities processing, record keeping and corporate trust administration. Our commitment to Corporate Trust is recognized in the industry and demonstrated by our substantial investments in technology and acquisitions. In an era of rapid consolidation 042-copd STATE STREET ' — — $Iviny lnflrlulrrinnllnwtlors Warp.M among the providers of corporate trustee services, our demonstrated commitment gives our clients the comfort of knowing that we seek to form long-term relationships. Services are delivered from a client-focused perspective. This translates into adding value to every transaction by applying our expertise and creativity in developing the solutions necessary for our clients to manage their capital programs while concentrating on their specific public mission. To put it in more simplified terms, when appointed, State Street becomes an extension of the City of Palm Desert's staff. We approach every relationship from this perspective. Additionally, State Street's excellent reputation as a quality provider and our long-term commitment to trust services has provided opportunities for State Street to serve as 'Successor Trustee on several other issues. Most recently we were appointed Successor Trustee for the Housing Authority of the City of Santa Barbara and for the County of Contra Costa. Please contact Susan Boehlje at (805) 963-9644 and Laura Lockwood at (925) 335-1093, respectively, for additional insight relative to our Successor appointments. 36. Have any of your firm's public sector clients claimed in writing, within the last 12 months, that your firm was responsible for any investment losses?(check one) ❑ Yes ❑x No If"yes",please describe each matter briefly. 37. Has your firm been subject to any litigation, arbitration, or regulatory proceedings, either pending, adjudicated, or settled, within the last 12 months, that involved allegations of improper, fraudulent, disreputable, or unfair activities related to the purchase, sale, or settlement of securities on behalf of institutional clients?(check one) ❑ Yes El No If"yes",please describe each matter briefly. 38. Has your firm been subject to a regulatory, state, or federal agency investigation within the last 12 months,for alleged improper fraudulent, disreputable, or unfair activities related to the purchase, sale or settlement of securities?(check one) ❑ Yes ❑O No If"yes",please describe each matter briefly. 042-copd City of Palm Desert Request for Proposal To serve as Successor Trustee and Escrow Agent for: Various Bond Issues 3 March 2000 L L S Presented By: John T. Deleray Vice President 213.253.6310 STATEMENT OF CONFIDENTIALITY The information contained in this document is proprietary to Wells Fargo Bank. Wells Fargo submits this document with the understanding that it will be held in strict confidence and will not be disclosed. duplicated or used, in whole or in part,for any purpose other than the evaluation of Wells Fargo's qualification without the prior written consent of Wells Fargo Bank. PROPOSAL LIFE This information and all enclosed pricing will remain valid until the following date, unless otherwise agreed to by Wells Fargo Corporate Trust to extend the deadline: 3 May 2000 WELLS FARGO BANK RFP NO.00-01: FEE PROPOSAL ESTIMATED TOTAL DIRECT SERVICES ANNUAL VOLUME UNIT PRICE FEE PRICE Acceptance Fees (Conversion) Per Bond Issue Waived $0.00 Counsel Fees (Conversion) Per Bond Issue Waived 50.00 Trustee\Fiscal Agent Fees— Per Bond Issue All Fixed Rate Total Annual ANNUAL ADMINISTRATION Assessment District Administration Fee i &Tax Allocation P Revenue Bonds- for all issues - NOTE: It is Wells Fargo's $2.300.00* $29,700.00 practice to charge an "all inclusive" Annual Fee. No 1995 Revenue Bonds additional add-on or transactional (marks-Roos -- - Financing.includes fees for tasks performed such as underlying Fiscal the production of checks or wires Agent or the processing of construction responsibilities)- requisitions will be charged. $3'500'00 1997 Revenue Bonds &Escrow(All payments in escrow) -$1.000.00 1992 Series A Tax Allocation Revenue Bonds(Project Area No. 1 as amended)- $3.500.00 1996 Tax Allocation Revenue Bonds& Escrow(All payments in escrow) -S 1.000.00 i j Fiscal Agent Fees As shown above Included in Annual Administration Paving Agent Fees Waived $0.00 Registrar Fees Waived $0.00 Transfer Agent Fees Waived $0.00 Defeasance Escrow Agent Fees S $ De ository Agent Fees Waived $0.00 Tender Agent Fees Waived 50.00 Letter of Credit Draw Charges Waived $0.00 Bondholder Account Maint. Charges Waived $0.00 I Wire Transfer Charges Waived $0.00 Redemption Charges Waived 50.00 Security Trade Charges Waived $0.00 ®- I I Collateral Maintenance Charges $500 per annum Depends on #of (assuming we are accounts for which responsible for collateral calculating mark- maintenance is to-market, necessary otherwise—to be waived) Out-of-pocket Charges As incurred As incurred Itemize All Other Expenses Below: $ $ Investment Contracts—One time Per Agreement- $500 per agreement charge to set-up and review $500 $ $ TOTAL ANNUAL FEES $ $29,700.00 ** Each offeror shalI be responsible for contacting the Municipality's current trustee, U.S. Bank, for information on the annual volume for each service *$2,300 Annual Administration Charge is for the following issues: Assessment District 94-2, Assessment District 94-3,Assessment District No.98-1, 1995 Tax Allocation Revenue Bonds (Project Area No. 1), 1995 Tax Allocation Revenue Bonds (Project Area No.2), 1995 Series A—Tax Allocation Revenue Refunding Bonds, 1997 Series Tax Allocation Refunding Revenue Bonds, 1998 Series Tax Allocation (House Set-Aside) Revenue Bonds & 1998 Series Tax Allocation Revenue Bonds (Project Area No.4) ADDITIONAL INFORMATION RELATING TO FEES: Terms and Conditions I. Fees for extraordinary services will be negotiated and charged based upon time expended and personnel involved. ?. Billings over 30 days past due are subject to a 1.59c per month late payment penalty on balance due. li'ells Fargo/:Vorwest's bid is based on the following assumptions: • All issues are book entry or fully certificated This proposal is based upon the assumptions listed above which pertain to the responsibilities and risks P P P P involved in Wells Fargo undertaking the role(s)of Trustee,Fiscal Agent,Escrow Agent,Registrar and Paying Agent. These assumptions are based on information provided to us as of the date of this proposal. Our proposal is subject to review and acceptance of the final documents. Should any of the assumptions,duties or responsibilities change,we reserve the right to affirm,modify or rescind our proposal. 0- 12 SECTION D - RFP NO.00-01: TRUST SERVICES QUESTIONNAIRE 1. Firer Name: Wells Fargo& Company 2: Contact Address: Wells Fargo Corporate Trust 333 S. Grand Ave., Suite 740 Los Angeles, CA 90017 3. Contact Personnel: Account Representative Supervising Manager Name: Jeanie Mar Name: Jenni Minardi Title: Vice President Tide: Vice President/Regional Manager TEL: 213.253.6320 TEL: 213.253.6331 4. Please Provide resumes for the account representative, the supend cing manager, and anv other emploveec who would he assigned to the Municipalin 's account. Please identify the current average trust client caseload for each employee. Jenni Minardi — Regional Manager tel: 213.253.6331 Vice President fax: 213.680.1827 Email:Jenni.minardi@Norwest.com Jenni Minardi has been in the corporate trust industry for over 17 years. She joined Wells Fargo/ Norwest's Corporate Trust Services Division in April 1999 with her initial responsibility having been to open and staff new Corporate Trust offices in Los Angeles and San Francisco. Jenni's corporate trust career began at Bank of America in 1982, where she worked through part of 1996, having started as an administrative assistant to two trust officers. Over the years,Jenni advanced her career through various corporate trust positions to include Trust Officer, Senior Trust Officer,Team Leader and Manager of BofA's Los Angeles Corporate Trust office. In 1996, Jenni joined State Street as their CA Corporate Trust Salesperson. She had responsibility for developing new business, principally within the State of California. Through her many years of experience, Jenni has developed an excellent reputation in the public finance community, and is well-respected within the Corporate Trust industry. This was instrumental in her ability to hire the best Corporate Trust professionals when staffing our CA offices. Jenni holds a Bachelor of Science degree from the University of the Pacific. ®- 14 Jeanie Mar—Account Manager tel: 213.253.6320 Vice President fax: 213.680.1827 Email: Jeanie.Mar@Norwest.com Ms. Mar has over 10 years of Corporate Trust experience, having recently joined Wells Fargo from State Street Bank and Trust Company of California,N.A., where she was responsible for the management and administration of a portfolio of 166 trust accounts. Her accounts portfolio consisted of all types of financings, including but not limited to escrows,paying agencies, CFDs.COPS, and Housing and Marks- Roos transactions. Jeanie has been charged with maintaining some of our biggest and newest trust relationships. Her customers include the City and County of San Francisco, the County of Kern and the City of East Palo Alto. Within the Corporate Trust industry,Jeanie is viewed as one of the top account managers in the state. It is not uncommon for issuers to ask for Jeanie by name when a trust is to be administered by us. We are honored to have Jeanie as an employee. It is people like Jeanie who will help us to create the finest trust department in the state. Ms. Mar holds a Bachelor of Sciences degree from the University of Southern California. Aracelv Padilla— Account Representative tel: 213.253.6335 fax: 213.680.1827 Email:Aracely.padilia@Norwest.com Ms. Padilla has over 6 years of Corporate Trust experience, having recently joined Wells Fargo Bank from Bank of New York Western Trust where she was responsible for the administration of over 200 trust accounts. She worked on all types of financings including but not limited to Revenue Bonds, Certificates of Participation. Assessment District Bonds, Refunding Escrows, Housing transactions and other complex financings. Ms. Padilla has completed courses I, II, & III in Corporate Trust at the Cannon Financial Institute and is a Certified Corporate Trust Specialist. CURRENT AVERAGE TRUST CLIENT CASELOAD FOR EACH ADMINISTRATOR: APPROXIMA TELY 15 ACCOUNTS ®- 15 5. Please provide five references from California cities that have an established relationship with the account representative who is listed in Question 3. Indicate: (a)name of city; (b)contact person; (O address: (d) telephone number; and(e) length of relationship. Note: Because Norwest/Wells Fargo entered into the California municipal marketplace in mid- 1999, we do not have a complete list of references for Jeanie Mar during her tenure at Wells Fargo. However,when considering the information provided, please remember that Wells Fargo is the nation's 4" largest provider of trust services,that we have recently opened up offices in both Los Angeles and San Francisco and that all of Wells Fargo's California Corporate Trust employees have at least six years of trust experience and have reputations within the California marketplace of being the best in their field. r Listed below are references pertaining to Jeanie Mar with Wells Fargo (County of Kern and City and County of San Francisco), Wells Fargo as successor trustee(California Statewide Communities Development Authority) and Jeanie Mar at her previous place of business (County of Riverside, City of Fontana and City of San Jose). We urge you to contact California Statewide Communities Development Authority. We are in the process of successoring a great number of trust accounts that were previously maintained by U.S. Bank Trust. PUBLIC AGENCY REFERENCES FOR WELLS FARGO CORPORATE TRUST & JEANIE MAR: County of Kern City and County of San Francisco California Statewide Communities Mr.Jordan Kaufman Ms.Sarah Hollenbeck Development Authority Deputy County Administrative Financial Analyst Mr.Gerald Burke Officer Mayor's Office of Public Finance Finance Director 1115 Truxton Ave.,5" Floor Citv Hall.Room 336 1470 Maria Lane,Suite 400 Bakersfield,CA 93301 1 Dr.Carlton B.Goodlett Place Walnut Creek,CA 94956 P: 661.868.3174 P:415.554.6240 P: 925.933.9229 (Length of relationship—6 (Length of relationship—8 (Length of relationship—4 months,Jeanie Mar @ Wells months,Jeanie Mar @ Wells months,Wells Fargo only) Fargo) Fargo) Housing Authority of the County City of Fontana City of San Jose of Riverside Ms.Lisa Strong Mr.Julia Cooper Mr. Rudv Tamayo Finance Manager Debt Administrator Assistant Executive Director Deputy City Treasurer Finance Department 5555 Arlington Avenue 8353 Sierra Avenue 801 N. First St.,Room 110 Riverside.CA 92504 Fontana.CA 92335 San Jose,CA 95110 P: 9419.351.0700 P: 909.350.7671 P: 408.277.4695 (Length of relationship— 10 years, (Length of relationship— 10 years, (Length of relationship—6 years, Jeanie Mar while at State Street) Jeanie Mar while at State Street) Jeanie Mar while at State Street) 0. PMase provide nro re oences from California cities that no longer have a relationship with Your firm. 111dicate: (a)namc of city: (b) contact person: (c)address: (d) telephone number: and(e) lengilt of relationship. Please explain hchv wmr firm no longer nucnage.s these accounts. Wells Fareo Bank currently manages all accounts for which it was appointed Trustee. Since our establishment in the state of California in April. 1999. we have not lost any Trust relationships. ®- 16 7. Please idenrifi the number of professionals and support staff that your firm has in the corporate trust office that would serve the Municipalin. Wells Fargo/Norwest's Corporate Trust staff presently numbers 691 nationally. The size of our rapidly growing staff in California currently is eight—five in Los Angeles and three in San Francisco. Over the last two years, acquisitions, internal reorganizations and the addition of new public finance regional offices have contributed to significant, but controlled staff growth. Year Corporate Trust Services Staff January 1, 1995 165 P January 1, 1996 367 January 1, 1997 529 January 1, 1998 700 January I, 1999 700 January I, 2000_ 691 An Account Team consisting of Jeanie Mar and Aracely Padilla located in our Los Angeles office would be directly responsible for serving the City of Palm Desert. R. Htm munc of the employees in Question 7 devote a mujorin'(>50%) of their time to municipal debt administration? Of the 691 employees referenced above, over 400 devote a majority of their time to municipal debt administration. In our Los Angeles office 3 of 5 employees (including Jeanie Mar and Aracely Padilla) devote more than 50% of their time to municipal debt administration. 9. tt"hut percentage of time dues the account representative who is listed in Question 3, devote to mmhicipul debt adminis'n'ation.., Approximately 75% of Jeanie Mar's time is currently devoted to municipal debt administration. However, if we are awarded the City of Palm Desert's corporate trust business, we expect this % to increase to around 95%. 10. tthut is yourfirm'.c liducimi classification.'fcheck all that apply) Bank — National Association XX Trust Company —National Bank—State Association Trust Company —State Affiliate of Investment Bank Limited Purpose Trust Company Affiliate of Foreign Bank Affiliate or Subsidiary of a Bank _ Holding Company Joint Venture with Another Other(describe) Firm(describe) 0- 17 11. Please describe your firm's ownership structure. If your firm is owned by a parent bank bolding company or corporation, than please identify that entity's name; its net capitalisation, and where it I s headquartered(city and state). Wells Fargo&Company (of which Norwest Bank is a subsidiary) is a publicly owned institution listed and traded on the New York Stock Exchange. On November 2, 1998 Norwest Corporation and Wells Fargo&Company completed a "merger of equals" which created the Western Hemisphere's most extensive and diversified financial services network. Wells Fargo's headquarters is in San Francisco,but we're decentralized in such a way that every local Wells Fargo store is a headquarters for satisfying all our customer's financial needs and helping them succeed financially. F The combined company which has assumed the name Wells Fargo&Company, has over$201 billion in assets, more than 101.000 employees, approximately 15 million customers, and more than 6,000 financial services stores in all 50 states.Canada, the Caribbean,Latin America and elsewhere internationally. Dick Kovachevich,the former Chairman and CEO of Norwest Bank and now CEO of the Wells Fargo & Company, has emphasized that the merger has had "absolutely no effect" on our commitment to outstanding customer service, local marketplace decision-making and community investment programs. 12. Where is eour firm headquartered(cite and state)? Although Wells Fargo& Co. is headquartered in San Francisco, Minneapolis. MN serves as the location of the Corporate Trust headquarters. 1?. Based upon currently available b7forntation, is ynarfirm a possible merger or acquisition candidate:? if heck one) Yes X No If"yes", please discuss and identify the possible merger partner or acquiring organization. 14. lVhar federal or stare alency supervises or examines your fiirm? Wells Fargo & Company uses internal auditors and is governed by The Office of the Comptroller of the Currency (OCC) which charters. regulates, and supervises national banks. . LVhat is the total anunau of your firm'.s combined capital(exclusive of borrowed capital)and.surplus as of'il December 1999a Wells Fargo& Company (of which Norwest Bank Minnesota is a subsidiary) reported total shareholders equity of$21.4 billion, surplus of $8.764 billion and retained earnings of$10.028 billion for the period ending December 31, 1999. 10. What is your f rtn's Tier l capital ratio (to risk-adjusted assets)as of 31 December /999? Wells Fargo & Company's Tier I capital ratio is 7.95%. 17. What is the total dollar amount of out stondinK Municipa bond principal for which your firm provider rnrporene trust services.' . Wells Fargo/Norwest currently has 5356.6 Million outstanding of Municipal bond principal. 0- 18 18. Does your firm have a corporate trust office that is physically located within the State of California? XX Yes No If"yes", please identify the location, the business hours,and how long your firm has been providing corporate trust services in California. Wells Fargo currently has Corporate Trust offices in Los Angeles and San Francisco. Business hours are 8 a.m. to 5 p.m. We are the nation's 4`" largest Corporate Trust provider and have been doing Corporate Trust business in California since April 1, 1999. 19. Is your firm'.s corporate trust administration centralized at one physical location? (check one) Yes XX No If"yes", please discuss and identify the possible merger partner or acquiring organization. 20. Does vour fern own a securities clearing operation or does it subcontract that responsibilit. to anotherfnrm? (checkone) XX Yes No If"subcontract", please identify the subcontractor. And how long your firm has done business with the subcontractor. 21. 1"here is the .securities clearing operation located(cit).and state)? What is the time zone' What are the "cur-off' limes for "cash" rrades, corporate securities, Treasuries. Agencies, and bunker's at c'eprcmc'es.' Cash trades: Varies depending upon selected money market fund (earliest possible—9:15 a.m. P.S.T.) Corporate Securities: 12:00 Noon P.S.T. Treasuries: 10:30 a.m. P.S.T. Agencies: 10:30 a.m. P.S.T. Banker's Acceptances: 10:30 P.S.T. ". Which of the follotu ill" investment instruments is your firm capable of clearing? (check appropriate choices) T-Bills XX Certificates of Deposit XX T-Notes XX Commercial Paper XX T-Strips XX Corporate MTNs and Bonds XX Banker's Acceptances XX Mortgage-Backed Securities XX Repurchase Agreements XX Agencies (specify-all normally traded) XX 23. Please describe vour frrm's pnlia_v regnrding,failed transactions and its method of compensating customers in the event that vour firm is at fault. Please provide a description of'the compensation formula and ill(, nrethodologv that is used to calculate compensation. Our policy is simple: If we make a mistake. we pay the customer the interest lost due to the trade failure. Compensation Calculation: Interest Rate X Principal/365 X #of days of interest lost ®- 19 24. How trzam anti ghat percetztaSe ar your securities transactions failed last month? During the last 12 months' We are unable to determine a precise answer to this question. We are confident stating that less than 2% of our trades in the last month and during the past 12 months have failed. 25. What is the limit on your firm's errors and omissions insurance policy and who is the insurance carrier. Wells Fargo maintain a fidelity blanket bond in the amount of$150,000,000 per occurrence and aggregate for direct financial loss caused by or resulting from: employee dishonesty, in-transit and on- premises burglary, robbery and/or damage, forgery, unauthorized signatures,counterfeit,electronic and r computer crime, wire transfer. and mail and transit carrier claims related to negotiable and non-negotiable items. The Insurers are: Superior Guaranty Insurance Company reinsured by National Union Fir Insurance Company of Pittsburgh.PA and Federal Insurance Company. 20. tViiere is the vault facility in which your firm would hold the Municipalitv's physical securities (street address, cite, and state):' The vault facility is located at Norwest Bank, 608 2nd Ave. S., Minneapolis, MN. 27. please describe hover vour firm would ensure that all of the Municipality's securities that it holds in truss will qualilp for a GASB 3, Category 1.rating. Alternativeh, if your firm does business with the dunicipalin as a brokerldealer, please identiif and describe the exact amount of its insurance coverage with respect to securities that it trades and also holds in trust(GASB 3, Category 2 rating). c Wells Fargo will do business with the Municipality as a broker/dealer, using Wells Fargo Securities Inc. which is a member of SIPIC and there for is fully covered. In addition the firm carries supplemental insurance of S 100.000.000 per customer. 28. please iclentih and describe N our firm's trust accounting data processing .system: its reporting capabilities: how it can be accessed on-line: and hover often, over the last 12 months, it has been umccessible because of technical problems. Wells Fargo Trust Svstems The core trust systems currently supporting account and portfolio management.compliance monitoring and payment/security processing are: SEI Trust 3000, BondMaster,CertMaster, and AccountControl. SEI Trust 3000 is a real-time processing system. It records actual cash and securities held in all trust accounts with up-to-the minute reporting. SEI is the nation's leading provider of trust service software, and provides Wells Fargo the automation, information and financial capabilities to service its clients. Between 1997 and 2002. SEI will reinvest S125 million in Wells Fargo's trust systems. Since Wells Fargo is one of the four largest users of SEI's applications, we are an influential member of the R&D Steering Committee that drives the strategic direction of future system development. BondMaster is a comprehensive registered, bearer, mixed-issue and book-entry reporting system for Paying Agent. Registrar and Trustee bond issues. The system is designed and supported by SunGard Shareholder Systems. It is the most widely used financial data reporting/processing system, servicing 70`7c of the Top 100 U.S. banks. CertMaster is a comprehensive and flexible debt accounting system that supports registered and book-entry accounts for asset-backed. mortgage-backed, Flex-term note, medium-term note and commercial paper products. AccountControl. also supported by SunGard Shareholder Services, is the automated account monitoring system Norwest utilizes as its trust database. This account E- 20 management system assists the Account Team with compliance monitoring and the proper and accurate administration of each customer's account. Wells Fargo ACCESS (Optional Reporting Service available for an additional fee) For on-line data delivery,Wells Fargo offers its clients the option of utilizing our electronic ACCESS product which provides an interface with the Wells Fargo SEI Trust 3000 system. Wells Fargo ACCESS is a PC-based electronic link to the client's portfolio. It allows the client immediate access to trust account information including account balances, asset lists, and transaction history. ACCESS information is up-to-date as of the close of the previous day's business, and is available at 7:00 a.m. CT each morning. ACCESS is based on the Microsoft Excel for Windows application, which allows commands through f' easy-to-use pull down menus and graphic icons. Customized reports can be created with the use of databases and graphics to make projections, perform"what-if calculations and to build charts that ACCESS updates automatically. The key to ACCESS is the flexibility it can offer. Not only does ACCESS offer a selection of pre-formatted reports, but it also permits the user to create customized reports with an extensive ad-hoc reporting feature. Experienced Staff The sixteen national offices of Public Finance (Corporate & Municipal Marketing Group), together with the Investor and Payment Services(IPS) Unit,employ a staff of over 100 to administer Wells Fargo's bond portfolio of debt issues. The IPS Unit is centralized in Minneapolis. This operations unit is responsible for bond registration, ownership transfers,bondholder payments, bond calls and tax reporting. To assure timely and accurate processing, IPS regularly tracks performance against 45 performance statistics dictated by the SEC, the banking industry and Wells Fargo's own internal control standards. IPS has been able to consistently achieve a record of attaining 98.5 - 100 percent of its prescribed performance goals. The IPS Unit also staffs a Customer Service Inquiry Line for Bondholders where phone inquiries are answered by full-time staff Monday.through Friday. (The toll free number is: 1-800- 344-5128). To the best of our knowledge, these systems have not been inaccessible over the last 12 months. A sample of our SEI Trust 3000 Monthly Report may be viewed in Section 9. 29. Does Voan_first have an existing interface program that is capable of electronicalh linking your firm'.s nest accounriq;data Processing .s_Vstetn with SymPro, and directly transferring cash balance data into individual S.vmPi'o investment files? (check one) _ Yes No If"yes", please describe.the interface program's capabilities with respect to SymPro and how long the interface program has been operational. Please also list three references from California public agencies that are currently using the interface program. We are unable to determine whether Wells Fargo ACCESS can be linked directly to SymPro. Both Sympro and us believe it can. However, without actually having attempted to link with SymPro, we are hesitant to answer"Yes" unconditionally. Please refer to Question 28 for a full description of Wells Fargo ACCESS. Wells Fargo ACCESS is compatible with CSV-Files. TAB Duel Limited, Excel, Access, and Text File. ® 21 30. Please describe the procedures that your firm would use to ensure that all of the Municipalin•'s bonds are in compliance with their Indentures of Trust. To assist the Account Team in the compliance and risk management tasks of a customer portfolio, . Corporate Trust Services utilizes a corporate trust database management system from Stellar rP rP g Technologies, referred to as AccountControl,or STELLA. This system incorporates compliance tracking along with on-going database needs for each issue. STELLA is well equipped to handle the specific requirements of a portfolio. For example, STELLA is designed to track payments and generate reports outlined within the financing structure of the issue or the governing documents, at either the Obligor. Resolution or Borrower level. Further,the Account Team receives the benefit of automated account monitoring to ensure integrity within complex cash flow structures or multi-faceted debt structures within our more complex bond programs. 31. lVill vour firm charge acceptance.fees and counsel fees for the Municipality's outstanding bond I ssues if it becomes the successor trustee? (check one) Yes XXX No If"yes", please identify the charges in the Fee Proposal 32. Please describe the capabilities and the experience of pour fnrnt in providing all services that are listed under "Required Services" in this RFP. As a full service Trustee, we frequently perform all services listed under the "Required Services" section of the UP. 33. Please describe anv "Optional Services" that you believe would be of benefit to the Municipality. Any associated costs should he itenti:.ed in the Fee Proposal. SEI Trust 3000 Third Party Access (Fee waived) Wells Fargo Bank recognizes that clients would like to have easy access to their cash and asset holdings as well as a daily transaction log. Because of this. Wells Fargo offers our clients the ability to log on via modem to the Wells Fargo SEI database. This allows you, one account at a time, to see the exact same information that our Administrators view. In order to insure privacy, each client is allowed access to his or her accounts only. Currently, SEI is working on making account information available through the Internet and hope to have this service available within the next year. Wells Fargo will provide training to the City in the system applications. Wells Fargo Institutional Brokerage(Fee waived) Wells Fargo is dedicated to helping municipalities and all public entities in their efforts to manage their overall investment portfolio needs. We have dedicated investment specialists on staff who have expertise in servicing public entities and their unique investment needs. Institutional Brokerage offers an extensive variety of investment products and services. It works in conjunction with Corporate Trust to provide comprehensive investment solutions. Other Financial Services Wells Fargo Bank and its associates can assist you with any of the following: - Guaranteed Investment Contract Bidding Agent - Arbitrage Rebate Calculation (through Orrick. Herrington & Sutcliffe) - Insurance: Property, Casualty. D&O. E&O, Malpractice, Etc. 0- 22 34. Please list and describe the nionev market lands that. oin-firm offers as part of its automated cash .sweep program. Please pirovide a breakdown of the basis points that mould be charged for each _find. All money market funds are provided by Wells Fargo(current 30 day yields after basis points have been deducted are shown in parenthesis): I. Treasury Fund (5.04%. AAA rated)—Backed solely by Treasuries—36 basis points charged in total 2. Government Money Market Fund (5.40%, AAA rated)—Backed by Treasury instruments, U.S. Government Agency instruments and repurchase agreements - 40 basis points charged in total 3. Treasury Plus Money Market Fund (5.07%. AAA rated)—Backed by Treasury instruments and i repurchase agreements— 36 basis points charged in total P 4. Cash Investment Money Market Fund (5.58%, Not rated)—Backed by Treasury instruments, U.S. Government Agency instruments, repurchase agreements, bank/S&L obligations, short-term corporate instruments, eurodollar and foreign CDs—38 basis points charged in total 351 Wh% should vow firm be retained as the Municipalir)"s trustee? Please elaborate on am competitive advantages that the Mirnicipaliry would gain by selecting your firin, cis opposed to other firnis. Wells Fargo Corporate Trust should be selected by the City of Palm Desert for the following reasons: 1. Wells Fargo is committed to providing Corporate Trust Services in California Wells Fargo(formerlv Norwest Bank) has provided Corporate Trust Services nationally for 65 years and is backed by a AA rating. However. it is our recent entry into the California marketplace which serves to benefit the City of Palm Desert. In April. 1999 Wells Fargo opened up a Corporate Trust office in Los Angeles and in October. 1999 we opened up a Corporate Trust office in San Francisco. We did not purchase an existing book of business to start these offices, rather we are growing them from the ground up. Our entrance into the California marketplace has quickly yielded great results. Many California municipal issuers have elected to have Wells Fargo act as their Trustee during the past year. California Statewide Communities Development Authority (the nations 4`h largest issuer of bonds) recently chose Wells Fargo to act as Trustee on all of their outstanding and future Industrial Development Bond Issues. They also elected to have us act as Trustee on the great majority of their other types of debt issuances. The bottom line is: WE NEED CUSTOMERS IN CALIFORNIA! We have hired experienced professionals who currently average only 15 municipal accounts per administrator. WE ARE IN THE PERFECT POSITION TO ACCEPT AND PROPERLY ADMINISTER LARGE SUCCESSOR RELATIONSHIPS! We are committed to hiring additional staff proactively as our account load necessitates. The City of Palm Desert would not be just another trust client to us. You would immediately become one of our largest trust clients in California. It would be extremely beneficial to us to serve the City of Palm Desert and serve you well. M- 23 II. Wells Fargo is a National Leader in Corporate Trust Nationally, Wells Fargo currently ranks#2 in Housing Finance Issues,#2 in Student Loan Finance Issue, #4 in Healthcare Finance Issues and #4 in all Trustee Issues. Our strength nationally along with our dedication to provide all Corporate Trust administration functions locally allows us to "out-local the nationals and out-national the locals:' III. Wells Fargo is Committed to Corporate Trust t Norwest continues to demonstrate a strong commitment to our corporate trust business. Building for the future. Norwest has: I. Made significant investments in technology: We recently completely upgraded to SEI Trust 3000, completed installation of Risk Management System and developed two on-line access systems for our clients; 2. Opened new offices in California,Oregon and Virginia in 1999,Maryland in 1996 and Texas in 1995: 3. Aggressively increased our portfolio size: Since 1995, Wells Fargo (formerly Norwest) has more than doubled its portfolio size to over 7,000 accounts; 4. Doubled earnings: In 1995. Dick Kovacevich,former Chairman of Norwest Banks and current CEO of Wells Fargo & Co., established an aggressive goal of doubling the contribution of the company's eaming from our trust, investment and insurance businesses by the year 2000. During this time. Corporate Trust has contributed heavily towards this goal by more than doubling its earnings. IV. Wells Fargo's Corporate Trust is Building Technology for the Future I. Wells Fargo's Commitment to Technology Contrary to many of our competitors.Wells Fargo believes that all customer inquiries related to their accounts should be addressed by an Account Manager and Account Representative (an "Account Team')assigned to their accounts. This structure has made it imperative that the Account Team has at its disposal the most efficient tools to answer its customer requests and accomplish its daily processing. Recognizing that tact, effective October 1, 1999, we made the decision to move one of our most experienced managers out of the daily management of her Corporate Trust Services("CTS") business line and to make her responsible for the development of key operating applications for use by the administrative teams and our customers. Patricia Fisher has been with Norwest for over 34 years, with 29 of those years with Corporate Trust in various positions from Account Representative through Account Manager/Sales and, finally, managing the Project Finance(IDB)Group. For the year 2000, we have allocated over S 1.000.(X)0 for the analysis and development of two initiatives to bring greater efficiencies to our account teams and, ultimately,continued superior service to our customers. II. Administrative Desktop and CTS Data Warehouse Development is currently in process on the administrative desktop application which will allow our account teams to input all key data related to each account only once using a single point of entry into a user friendly data"gateway". From that application,those key data elements will be automatically transferred to as many as 16 other legacy and internal systems. Not only is this data transferable TO each of those systems, this application allows for transfer of data FROM those systems for output to other applications. This also allows for the future development of customer reporting not currently available from most, if any.banks in the corporate trust business. The first three phases of E- 24 this development are scheduled for completion by mid 2000 with implementation to continue through the next quarter. III. Debt Service System Wells Fargo currently uses the Bondmaster and Certmaster systems to track bondholders,bond transfers and generate all associated principal and interest payments. However,the administrative teams use numerous Excel, Word.and Access applications to perform the debt service billing, variable rate calculations, letter of credit draws. reserve fund calculations.etc. To further enhance our technology, work is currently underway in writing the requirements for an application that will use the bond terms entered into Bondmaster for fixed rate debt to automatically generate a debt service schedule for use by the administrators as well as our customers. In addition. it will calculate the amount of any reserve requirement(s)and any accrued interest to be received from the purchasers at closing. Movement of funds from the trust accounts to the paying agent DDA account and scheduled sinking r fund redemption's will be processed automatically,and rules specified in the governing documents related to unscheduled redemption's will be housed in this application to assure compliance with those documents. The requirements phase of this project is scheduled for completion by June 30, 2000 and the first phases of this application could be operational by the end of the year. While variable rate processing is not scheduled as a part of the first phases.of this initiative,it is currently slated for the next phase of development sometime in the year 2001. Currently, our variable rate processing is handled through the use of Excel spreadsheets used to calculate the monthly rates linked to Word documents to automatically generate the required documents for the draws on the letters of credit and notification to the borrowers of the amounts due. IV. Outlook Our commitment to technology is unprecedented in the industry. Not only do we have an experienced individual responsible for the advancement of our Corporate Trust systems. we also have 75 people dedicated to improving our technology within our Corporate Trust Services Division. Rest assured that if it's on the cutting edge of Corporate Trust technology. then it's probably at Wells Fargo. ?6. Hare am of roar firms public sector clients claimecl, in writing, irithin the last 12 months, that Your firer was responsible,fa'am investment losses. Yes XX No If"yes", please describe each matter briefly. %. Has ynur.lirm been subject to nny 1iti;4 itinn, arbitration, or regulatory proceedings, either pending, adjudicated, or settled• n irhin the last 12 months, that involved allegations of improper,fraudulent, disreputable, or ur fair tit-tit ities related ret the purchase, sale, or settlement of securities on behalf of instinuional clients° (che(k one) Yes XX No If"yes', please describe each matter briefly. d'. Has sour firm been subject to it regalator,c% state, or federal agenc.v investigation within the last 12 months,for alle-,ed improper.fraudulent. disreputable, or unfair activities related to the purchase, sale, or settlement nl'securitie.s' (check one) Yes XX No If"yes", please describe each matter briefly. 0- 25 AGENDA INVESTMENT & FINANCE COMMITTEE 'WEDNESDAY, February 23, 2000 -- 11:00 A.M. NORTH WING CONFERENCE ROOM I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES Rec: Approve the Minutes of January 26, 2000 as submitted. Action: IV. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not otherwise on the agenda may address the Investment & Finance Committee at this point by giving his or her name and address for the record. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. B. This is the time and place for any person who wishes to comment on non- hearing agenda items. It should be noted that at the Investment & Finance Committee's discretion, these comments may be deferred until such time on the agenda, as the item is discussed. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. V. OLD BUSINESS A. Status of Public and Private Partnerships Backaound Checks for Section 4 Rec: Report by Carlos Ortega. Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status Report on issuing new bonds. Action: AGENDA - INVESTMENT & FINANCE COMMITTEE February 23, 2000 VI. NEW BUSINESS A. City and Redevelopment Agency Investment Schedule for Tanuary 2000 Rec: Review and submit to the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity during the month of January. Review status of capital projects and cash flow projections. Action: B. Review Short Term Investments Maturing in February. 2000 Rec: Review investments in 1) collateralized deposits; 2) treasury bonds and notes; and, 3) agencies discount notes. Action: C. State of California Local Agency Investment Fund Monthly Reports for Tanuary, 2000 Rec: Informational item for the Committee to review. No action required. D. Monthly Financial Report for City Council for January, 2000 Rec: Report and submit to City Council. Action: E. Parizview Professional Office Buildings - Financial Reports for January, 2000 Rec: Review and file report. Action: F. Desert Willow Golf Resort Financial Information for Tanuarv. 2000 Rec: Review and file report. Action: G. Palm Desert Recreation Facilities Corporation Income Analysis for January, 2000 Rec: Review and file report. Action: �I L • AGENDA - INVESTMENT & FINANCE COMMITTEE February 23, 2000 H. City of Palm Desert C A F R for the year ending June 30, 1999 Rec: Report and submit to City Council. Action: I. Palm Desert Redevelopment Agency C U F R for the year ending June 30, 1999 Rec: Report and submit to City Council Action: VII. REPORTS AND REMARKS A. Reports and Remarks by any Committee Member 1. Request for Proposal for Corporate Trust Services B. Items to be j2laced on the Next Agenda VIII. NEXT MEETING DATE Next regularly scheduled meeting is: Meannegazy, March 15 2000 ,st 111-30 man. IX. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert Investment and Finance Committee was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this February 17, 2000. D12Ckl Veronica Abarca, Recording Secretary AGENDA INVESTMENT & FINANCE COMMITTEE WEDNESDAY, February 23, 2000-- 11:00 A.M. NORTH WING CONFERENCE ROOM I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES Rec: Approve the Minutes of January 26, 2000 as submitted. Action: IV. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not otherwise on the agenda may address the Investment & Finance Committee at this point by giving his or her name and address for the record. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. B. This is the time and place for any person who wishes to comment on non- hearing agenda items. It should be noted that at the Investment & Finance Committee's discretion, these comments may be deferred until such time on the agenda, as the item is discussed. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. V. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks for Section 4 Rec: Report by Carlos Ortega. Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status Report on issuing new bonds. Action: AGENDA - INVESTMENT & FINANCE COMMITTEE February 23, 2000 VI. NEW BUSINESS A. City and Redevelopment Agency Investment Schedule for Tanuary. 2000 Rec: Review and submit to the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity during the month of January. Review status of capital projects and cash flow projections. Action: B. Review Short Term Investments Maturing in February. 2000 Rec: Review investments in 1) collateralized deposits; 2) treasury bonds and notes; and, 3) agencies discount notes. Action: C. State of California Local Agency Investment Fund Monthly Reports for Tanuary. 2000 Rec: Informational item for the Committee to review. No action required. D. Monthly Financial Report for City Council for Tanuary. 2000 Rec: Report and submit to City Council. Action: E. Parkview Professional Office Buildings - Financial Reports for lanuary, 2000 Rec: Review and file report. Action: F. Desert Willow Golf Resort Financial Information for Tanuary. 2000 Rec: Review and file report. Action: G. Palm Desert Recreation Facilities Corporation Income Analysis for Tanuary. 2000 Rec: Review and file report. Action: AGENDA - INVESTMENT & FINANCE COMMITTEE February 23, 2000 H. City of Palm Desert C A F R for the year ending Tune 30, 1999 Rec: Report and submit to City Council. Action: I. Palm Desert Redevelopment Agengy C U F R for the year ending Tune 30, 1999 Rec: Report and submit to City Council Action: VIL REPORTS AND REMARKS A. Reports and Remarks by any Committee Member 1. Request for Proposal for Corporate Trust Services B. Items to be placed on the Next Agenda VIII. NEXT MEETING DATE Next regularly scheduled meeting is: Teamegasy, March 15, 2000 at 11-00 a.m. IX. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert Investment and Finance Committee was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this February 17, 2000. Veronica Abama, Recording Secretary STATE OF CALIFORNIA • PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER SACRAMENTO Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January,2000 Statement CITY OF PALM DESERT Account Number : 98-33-621 Attw CrrY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 - Transactions Effective Transaction Tran Confirm Authorized Amount ✓ Date Date Type Number Caller 01-14-2000 01-13-2000 QRD SYSTEM 185,496.84 01-26-2000 01-25-2000 RD 829625 THOMAS JEFFREY 10,500,000.00 Account Summary Total Deposit : 10,685,496.84 Beginning Balance : 12,115,828.37 Total Withdrawal : 0.00 Ending Balance : 22,801,325.21 IN J Page : 1 of 1 STATE OF CALIFORNIA • PHILIP ANGELIDES, Treasurer OFFICE OF THE TREASURER SACRAMENTO Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 January,2000 Statement PALM DESERT REDEVELOPMENT AGENCY Account Number : 65-33-015 Attn: TREASURER 73-510 FRED WARING DRIVE PALM DESERT CA 92260 Transactions Effective Transaction Tran Confirm Authorized Amount Date Date Type Number Caller 01-05-2000 01-04-2000 RW 58923 THOMAS W. JEFFREY - 5,829,000.00 01-14-2000 01-13-2000 QRD SYSTEM 105,367.39 01-26-2000 01-25-2000 RD 576842 THOMAS W. JEFFREY 10,500,000.00 Account Summary Total Deposit : 10,605,367.39 Beginning Balance : 7,655,294.71 Total Withdrawal : - 5,829,000.00 Ending Balance : 12,431,662.10 1 , s CZVA (T3 Page : 1 of 1 ,--� • IIIY 01 PALM OESERI 73-510 FRED WARING DRIVE: PALM DESERT, CALIFORNIA 92260-2578 TEL: 760 34 —o6i x FAX: 760 340-0574 info@palm-&...t..,g NOTICE OF POSTPONED MEETING OF THE PALM DESERT INVESTMENT AND FINANCE COMMITTEE NOTICE IS HEREBY GIVEN that the Investment and Finance Committee regular scheduled meeting of Wednesday, February 16, 2000, at 11:00 a.m. was postponed to Wednesday, February 23, 2000 at 11:00 a.m. in the North Wing Conference Room due to lack of quorum. Noticed and Posted, i Veronica L. Abarca, Recording Secretary Investment and Finance Committee February 11, 2000 L^a oo.nuaaEnnmruv CITY OF PALM DESERT' MEMORANDUM FINANCE DEPARTMENT FEBRUARY 1 19 2000 To: Investment Committee Members FROM: Veronica Abarca, Administrative Secretaryl;�— SUBJECT: February 16, 2000 Meeting Confirmation: The impending Investment Committee Meeting scheduled for February, 16tb has been changed to Wednesday, February 23, 2000. The meeting will be held at its usual time, 11:00 a.m., in the NWCR. All secretaries have been notified of this change, please let me know if you are unable to attend. Distribution: Buford Crites Jim Ferguson Ray Diaz Carlos Ortega Thomas Jeffrey cc: Jose Luis Espinoza, Finance Operations Manager 73-510 Fred Waring Drive,Palm Desert,California 92260 Phone:(760)346-0611 www.palm-desert.org Fax:(760)341-6372 CIIY Uf P101M DESER �""�� ' 73-510 FRED WARING DRIVE PALM DESERT, CALIFORNIA 92 260-2 5 78 TEL: 760 346-o6i L FAX: 760 340-0574 info@palm-desert.org ze�� NOTICE OF ADJOURNED MEETING OF THE PALM DESERT CITY COUNCIL NOTICE IS HEREBY GIVEN that the Palm Desert City Council adjourned its regular i meeting of February 10, 2000, to 11:30 a.m. on Wednesday, February 16, 2000, in the Council Chamber Conference Room of the Palm Desert Civic Center, 73-510 Fred Waring Drive, Palm Desert, California 92260. Said meeting will be for the purpose of conducting a Closed Session: Conference with Legal Counsel regarding existing litigation pursuant to Government Code Section 54956.9(a): a) Denise Oakley and Denise Weller v. City of Palm Desert, United States District Court - Central District of California, Case No. 99-07432MMM S ;) LS RACHELLE D. KLASSEN, XCTING CITY CLERK CITY OF PALM DESERT, CALIFORNIA FEBRUARY 11, 2000 l VY1 AAFCyla • AGENDA ME COPY INVESTMENT & FINANCE COMMITTEE REDNESDAY, February 16, 2000 -- 11:00 A.M. NORTH WING CONFERENCE ROOM I. CALL TO ORDER IL ROLL CALL III. APPROVAL OF MINUTES Rec: Approve the Minutes of January 26, 2000 as submitted. Action: IV. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not otherwise on the agenda may address the Investment & Finance Committee at this point by giving his or her name and address for the record. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. B. This is the time and place for any person who wishes to comment on non- hearing agenda items. It should be noted that at the Investment & Finance Committees discretion, these comments may be deferred until such time on the agenda, as the item is discussed. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. V. OLD BUSINESS A. Status of Public and Private Partnerships Background Cheeps for Section 4 Rec: Report by Carlos Ortega. Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status Report on issuing new bonds. Action: AGENDA - INVESTMENT & FINANCE COMMITTEE February 16, 2000 VI. NEW BUSINESS A. Citand Redevelopment Agency Investment Schedule for Tanuary,, 2000 Rec: Review and submit to the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity during the month of January. Review status of capital projects and cash flow projections. Action: B. Review Short Term Investments Maturing in February. 2000 Rec: Review investments in 1) collateralized deposits; 2) treasury bonds and notes; and, 3) agencies discount notes. Action: C. State of California Local Aden Investment Fund Monthly Reports for Tanuary, 2000 Rec: Informational item for the Committee to review. No action required. D. Monthly Financial Report for City Council for lanuaKy, 2000 Rec: Report and submit to City Council. Action: E. Parkview Professional Office Buildings - Financial Reports for January. 2000 Rec: Review and file report. Action: F. Desert Willow Golf Resort Financial Information for lanuary. 2000 Rec: Review and file report. Action: G. Palm Desert Recreation Facilities Corporation Income Analysis for lanuarv. 2000 Rec: Review and file report. Action: AGENDA - INVESTMENT & FINANCE COMMITTEE February 16, 2000 H. City of Palm Desert C A F R for the year ending Tune 30, 1999 Rec: Report and submit to City Council. Action: I. Palm Desert Redevelopment Agency C U F R Tor the year ending Tune 30, 1999 Rec: Report and submit to City Council Action: VII. REPORTS AND REMARKS A. Reports and Remarks by any Committee Member B. Items to be placed on the Next Agenda VIII. NEXT MEETING DATE Next regularly scheduled meeting is: weaimpo&® Mam h Ili 2000 at I1.00 a. m. IX. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert Investment and Finance Committee was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this February 9, 2000. Veronica Abarca, Recording Secretary Minutes Investment Committee CONVENE On January 26, 2000, the Investment & Finance Committee was called to order at 11:05 a.m. by Mr. Paul Gibson. ROLL CALL Russell Campbell, Ramon Diaz, Dave Erwin, Paul Gibson, Thomas Jeffrey, Murray Magloff, Carlos Ortega, and Veronica Abarca, recording secretary. Gregg Lindquist, Kemper Sport Manager (Desert Willow) APPROVAL OF MINUTES Qn a motion by Mr. Diaz, seconded by Mr. Campbell, the revised Minutes of the December 15, 1999 meeting were approved as submitted. ORAL COMMUNICATION None. OLD BUSINESS A. status of Public and Private Partnerships Background Checks for .Section 4. Mr. Ortega stated that there is a draft agreement with regards to the developer of the hotels at Desert Willow. We are currently completing background checks on the individuals involved. They have indicated that they do business with Los Angeles County. L.A. County continues to give them work at this time. Based on the information we are receiving back on the individuals indicates that they're able to perform. A subcommittee will be called between now and the February meeting to further review and make a recommendation. B. Bond Issuance by Palm Desert Financing Authority Mr. Ortega stated that there were no planned bond issues. However, they are formulating a five year plan identifying the potential projects they may do and their potential revenue sources. Additionally, City Council has requested that they look beyond five years and review the total financing capacity of the five project areas. Minutes Investment Committee OLD BUSINESS CONT. Mr. Ortega stated that the good news is that we are able to finance a substantial number of the projects. The bad news is that we can not fund every one of them. Specifically there is over$70 million of "under grounding" which will fall under the category of"We Need To Find Other Sources". Mr. Magloff asked for clarification of the future developments within the five project areas. Mr. Gibson requested that Mr. Ortega give copies of the list of projects once approved by City Council. Mr. Magloff had a concern with the open space in the desert. Mr. Gibson stated that we are in fact purchasing land, approximately 300 to 500 acres, up against the mountain hillside which will stay that way forever. Mr. Gibson then addressed the Cash Balances Available to fund Projects. Mr. Gibson reviewed the various funds and their restrictions with regards to availability. With all the restrictions placed on the various funds, there remains a balance of$8.8 million to which we are able to use without obligations. Mr. Gibson pointed out to Mr. Diaz that by loaning the $6.6 million to the Redevelopment Agency to build the new golf course as well as the $10.5 million for the parking lot at the mall, we no longer meet the requirement of at least "one year operating funds" in reserve in case of emergency. Mr. Diaz stated that there are projects which could be borrowed from or eliminated, in case of emergency, in order to meet that requirement. As treasurer, Mr. Gibson felt it was very important to keep the committee informed of these issues. There were no questions. Items F & G under New Business were taken out of order. NEW BUSINESS F. Desert Willow Golf Resort Financial Information for the months ending November & December 31, 1999 Mr. Gregg Lindquist of Kemper Sports stated that we exceeded the projected number of rounds for November by about 3%, which converted to revenues of$481,000. The food & Minutes Investment Committee NEW BUSINESS CONT. P deposits which are kept for layers who are "no shows". The revenues were affected by the lower attendance in all areas except the pro shop retail revenue. Year to date we are ahead of budget by$77,000. Mr. Lindquist noted that complimentary rounds are given times that do not displace paying customers. Mr. Diaz stated that with the clubhouse being incomplete and the 14 days of frost we still remain ahead of budget with a year end goal to he "in the black". Receive and file report. G. Palm Desert Recreational Facilities Corporation Income Analysis for the month ending November 30 and December 31, 1999 Mr. Lindquist stated that for November, 1999, the Food & Beverage did a total of$33,000 which was under the budgeted $53,000 due to the beverage missed budget by about $20,000 due to the anticipated completion date of the clubhouse which initially was October. The payroll and expenses also reflect the lack of the clubhouse. The Operating Budget was estimated to be at a negative $13,000 and actual is a negative $26,000 for November, 1999. Year to date we are ahead of budget by$155,000. Mr. Lindquist stated that the rounds for December, 1999 were budgeted at 5,600 and actual were a little over 4,800 the difference is due to fourteen days of frost in December, 11 more days than in December, 1998. Mr. Gibson stated that due to Y2K, the hotel rentals were substantially lower for December, 1999 compared to last year which could have affected the participation. Mr. Diaz requested that a footnote be placed on the financials to show the clubhouse being incomplete. Mr. Lindquist stated that again in December, the Food & i Minutes Investment Committee Beverage was under budget by$176,000 due to the clubhouse being incomplete. It was projected to be using the clubhouse for holiday parties and banquets. Receive and file report. A. City and Redevelopment Agency Investment Schedule Mr. Jeffrey stated that the book value of the City Portfolio as of December 31, 1999 was $161 million. The increase is a result of the sales tax received. The book value of the Redevelopment Agency Portfolio as of December 31, 1999 was $144 million. The increase is a result of interest income. Receive and file reports. B. Review Short Term Investments Maturing in TanuaKy, 2000 Mr. Jeffrey stated that there were no new investments maturing in January. Receive and file report. C. State of California Local Agenev Investment Fund Monthly Report Mr. Gibson reviewed the LAIF Statement for November and December, 1999. The City had a balance of$14.5 million and the Redevelopment Agency had a balance of$7.5 million at an interest rate of 5.274% as of November 30, 1999. The City had a balance of$ and the Redevelopment Agency had a balance of$ million at an interest rate of% as of December 31, 1999. Receive and file report. D. Monthly Financial Report for City Council for the month ending December 31, 1999 Minutes Investment Committee Mr. Gibson stated that the year-to-date sales tax are $1 million ahead of last year. Hotel rentals were low due to the Y2K issues. Overall TOT reflects an 8% increase in revenues. Property taxes will not be reflected until January, 2000. Mr. Gibson stated that expenditures are all on track with budget. The Redevelopment Agency will not show any revenues until the Tax Increment is received in January. Receive and file report. E. Parkview Professional office Buildings - Financial Reports for the month ending Decemher 31, 1999 Mr. Gibson state that Parkview Office Complex continues to do well. There is a current net income by$42,000. The State Rehabilitation are set to move in February 3, 2000. Receive and file report. H. The McCallum 'Theatre Finance Reporting for 99100 Mr. Gibson stated that this is merely an informational item. Receive and file report. I. Management Letters for Housing Authority and Desert Willow Golf Resort for the year ending Tune 30, 1999 Mr. Gibson stated that the management letters pointed out internal control issues which need to be monitored the City. The memo indicates what we will verify, to the auditors, that their actually doing the recommendations . Receive and file report. Mr. Gibson stated that the handout pertains to some Technical Amendments to the California Code Section. This handout will be going to the legislative committee and is merely to inform the Investment Committee of what we are requesting. i • Minutes Investment Committee Mr.Jeffrey gave a brief legislation update with regards to the wording of bankers acceptance maturities and commercial paper maturities. The time limits are juxtaposed. This is something that everyone is aware of, but noone has taken the time to change. This reversal limits the investments for the City of Palm Desert. We are suggesting with the approval of City Council that through the appropriate legislative representatives that the City sponsor the initiative to change the codes to reflect the correct amount of time. The next Investment &Finance Committee meeting will be held wednesday, February 1 M, 2000 at 11:00 a.m. Upon motion by Murray Magloff and seconded by Russell Campbell the Investment & Finance Committee adjourned at 11:50 a.m. Respectfully Submitted, V, wv Veronica Abarca, Recording Secretary 3 c otr 4+ 'Y i(5 Sa1r C SI �. Sfl u b !b W f r y � W y } @' d4 i`• e+[ 4a C {3f N N M Vi N f� Op, T7 V'i T F- N Vi tib 4" ,•� [+S Gt V7 li 7 [� 00 0o 7 O y TTT qp r N N •-� C? L'9 p C} .--� F N N N O N 7 vl O W z o � ( ty cl U bC yx c•I. N en N" we C� M 7 q q O 7 It It � UM- cc x C7 p 6 +C p ecs Ch £"1 uoi o v o o u 00f!wt`v � � � trs.. c o v, rnpo �n Y b y E (A d d y lO I b h Y p O CO M O o. O 4yi O �O vi N V N N m 0 > o O a - c a y o O N WL 0 7 C7 O c a CW7 an d ro. afi e v x d q o I� N W -.4 V.F N. W P. C7 P. P. V F W .. PALM DESERT REDEVELOPMENT A COMBINED STATEMENT REVENUE AND EXPENDITURES CO 31Jan-00 TOTAL RDA RDA I RDA %OF ACTUAL (FAV)UNFAV BUDGET YTD BUDGET ACTUAL TO YTD BUDGET VARIANCE REVENUES 1 Tax increment 28,323;686.00i 16,522,150.17 16,003,843.88 97% 518,306.29 2 Interest 2,060,000.00 1,201,666.67 1,647,474.70 137% (445,808.03) Sales of Property - 0% - 3 Reimbursement From Other Agencies 725,000.00 422,916.67 221,704.74 52% 201,211.93 Other Revenue - - 37,804.01 0% (37,804.01) Transfers to/from other funds - - 0% - j TOTAL REVENUES 31,108,686.00 18,146,733.50 17,910,827.33 - 235,906.17'i FAV(UNFAV) EXPENDITURES Administrative Costs 776,720.00 i 453,086.67 355,628.70 78% 97,457.97 Professional Services j 917,988.001 535,493.00 180,212.58 34% 355,280.42 Property Tax Administrative Fee { 520,000.00 303,333.33 502,395.00 166% (199,061.67) Cost of Inventory Sold - - 0% Payments to Other Governmental Agencies 9,363,200.00 5,473,533.33 811,522.86 15% 4,662,010.47 Bond Issuance Costs 0% Bond Discount ? - 0% - 4 Interest And Fiscal Charges 10,924,886.00 6,372,850.17 4,874,736.17 76% 1,498,114.00 Principal Payments ! 3,100,000.00 1,808,333.33 390,000.00 22% 1,418,333.33 - 0% Capital Outlay - j - 0% Office Equipment 10,000.00 5,833.33 1,546.67 27% 4,286.66 Undergrounding Projects I 21,665.00 12,637.92 - 0% 12,637.92 Deep Canyon&Hwy 111 3,078.00 i 1,795.50 - 0% 1,795.50 El Paseo Improvements 2,755,000.00 j 1,607,083.33 - 0% 1,607,083.33 Parking Spaces 10,000,000.00 j 5,833,333.33 - 0% 5,833,333.33 Fred Waring Dr.Street Improvements 5,265,000.00 j 3,071,250.00 422,504.59 14% 2,648,745.41 1-10 Cook St Interchange .250,000.00 1 250,000.00 250,000.00 100% - 5 No. Sphere Infrastructure 8,960,307.00 1 5,226,845.75 7,496,400.66 143% (2,269,554.91) RDA Projects i 5;005,144.00 j 2,919,667.33 - 0% 2,919,667.33 Desert Willow i 5,139,019.00 2,997,761.08 37,561.51 1% 2,960,199.57 Land Purchases/Property Acquisition 4,300,000.00 1 2,508,333.33 - 0% 2,508,333.33 0% 0% I 0% Transfers 0% _ Transfer Out Administrative Costs - - 0% Transfer(In)/Out Capital Exp Reimb - - - (9,068.46) 0% 9,068.46 Transfer Out Low/Mod Set-Aside 1 5,664,737.00 3,304,429.92 - 0% 3,304,429.92 0% I ' TOTAL EXPENDITURES [,__72,996,744.00 42,685,600.67 15,313,440.28 _ 27,372160.39 1. Tax increment is received in Jan&May 2. Interest is received as securities mature 3. Reimbursements are posted at various times during the year. 4. 10/1 debt payments of$5M are included here 5. Includes land Purchase o (oo o �� or o0 or0000mo (oo 000 000 (0 0 0 � oMo v o o r� r (noo o <00000 u� o (oo in000 000v o o Nl _ oaidcdv o oii � eod d � oo oo v000 ooddoo � d d �:, .n.�.. OJ N h 06, V] N N O t0 r W l0: V N V � r fD Ni Q M Mi N �t 7 U LL m m M M.; rn mk f 'o d - r r U a a e �' W yy 0. N N! OI a c c'! m w( 16 FN N (Oj p y (c a a a a in mi m O a — aD (p (O (O bj Q c> N MI < O O.. C N N of N NI N N r M _ M M OI N C O O O Ml rn o rn; r a (o [fli O d O r m: N N N O m (O Oi a` a M M (O N r a N � O Ni CO OJ: M r � @ O O O O• NM O {{ppr 00000 O W N .OI O O r N - O (p 0 0 0 0 0 CJ 0 0 -, Q _ _ _ '. O � O O � N �"� O N N; (O N O :m N mj N N O b O � O m; r 0 m 0 M aD N N Q O� N w C W 2 a H C N W C c p y ry >LU rn d n a o K Q 7 a LL H E rn d U o. 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O M M (D M O a O O M N M O O O N x o a of v CO co o r- O W OJ M m o rn m N V M N N ' O r` r` G d' m (•1 � O N O' N N > N O O O O O O O O O O O O O O O O O D O O O O O O 0 0 0 O O O D O O O C y O (00000o co. O0000d (o o n d N o o co 000 m0 7 9: M (d M (D N'O M V c d' O' c ,m. N (O co N N Co N O (O O y G = 3 M O 7 C: N (O M (D OJ O G co N W O M LO N.' g N lC tf N IL y 5 o E y oa- @ N c Q y E w y O( N O LL V C7 N =0 E y p ? E U> W a W c mo w c o i oO 3 E dC d E N 3y_3y0 f o E a0 0c cCL 0 o yam°. K > m m 3 c 'o a w 5 c 5 w a m aci c' 0 > (` m `� o ~ � y ti Q a 0 O c aO = a y 0c w .5 U =O C0 E t O e c c F x N � � cmm0 � o.a a` a` n. m m5 a` CHHF- w PALM DESERT REDEVELOPMENT AGENCY 31-Jan-00 Schedule of Revenue and Expenditures HOUSING FUND 7 YTD (FAV)UNFAV Budget Budget Actual YTD Variance REVENUES 2 Transfer in of 20% Set-Aside 5,664,737.00 3,304,429.92 3,304,429.92 3 Interest 115,000.00 S 67,083.33 11,739.49 55,343.84 Rental Income 45,00000 i 26,250.00 16,777.06 9,472.94 Sales of Property - 85,517.64 (85,517.64) 1 Reimbursement From Other Agencies - (96,163.20) 96,163.20 2 Housing Mitigation Fees 53,000.00 30,916.67 78.00 30,838.67 Other Revenue TOTAL REVENUES 5,877,737.00 3,428,679.92 17,948.99 3,410,730 93 EXPENDITURES FAV(UNFAV) Administrative Costs 286,850.00 167,329.17 151,512.51 15,816.66 Professional Services 137,525.00 80,222.92 41,269.66 38,953.26 Property Tax Administrative Fee - - Cost of Inventory Sold - Interest And Fiscal Charges 2,657,982.001 1,550,489.50 1,336,973.64 213,515.86 Principal Payments 880,000.00 1 880,000.00 880,000.00 - i Capital Outlay Office Equipment - Acquisition Rehab/Resale#7 500,330.00 291,859.17 28,706.50 263,152.67 Home Improvement Program 1-6 94,067.00 54,872.42 895.29 53,977.13 Santa Rosa 168,197.00 98,114.92 61,766.77 36,348.15 4 Property Purchases - 471,952.00 (471,952.00) 5 Desert Rose 3,850.00 F' 2,245.83 85,080.09 (82,834.26) Portola Palms Mobilehome Park 200,000.00 116,666.67 99,480.92 17,185.75 , Transfers Transfer(In)/Out Administrative Costs 100,000.00 58,333.33 58,333.33 Transfer(In)/Out Capital Exp Reimb TOTAL EXPENDITURES 5,028,801.00 3,300,133.92 3,157,637.38 142,496.54 Notes: 1 Includes prior year adjustment for tax increment calculation change 2 This transfer is done once a year only. 3 Interest is posted with investment maturities or dividend payments 4 Purchase of Rental property on Santa Rosa 5 Includes re-purchases and re-sales j |� 7 | 2 K \ 77 ¢ - \\ | % ■ ; ` � [ ! ` § | § \| � ) ( ( \ \ .M ■ ! K § \§ � ` � \ ` } \ . k ( \ . - § - . {k \\ EP ( � - . - � § ! ! 3 § ° ! ) - |2 » !) /\` - \ _ \ / ( j - \ \ } } , • City of Palm Desert • Parkview Office Complex January-99 January-99 # % YTD YTD # % Budget Actual Variance Variance Budget Actual Variance Variance Revenues Rental $ 66,500 $ 59,177 $ (7,323) 88.99% $ 454,500 $ 429,661 $ (24,839) 94.53% Dividends/Interest $ 1,250 $ 4,682 $ 3,432 374.59% $ 8,750 $ 29,104 $ 20,354 332.62% Total Revenues $ 67,750 $ 63,859 $ (3,891) 94.26% $ 463,250 $ 458,765 $ (4,485) 99.03% Expenses Professional-Accounting&Auditing $ 5,800 $ 5,800 $ - 100.00% `.' $ 40,600 $ 40,600 $ - 100.00% Professional-Consultants $ 5,500 $ 6,251 $ (751) 113.66% . $ 38,500 $ 50,251 $ (11,751) 130.52% Tenant Improvements $ 3,700 $ - $ 3,700 0.00% '- $ 25,900 $ 3,472 $ 22,428 13.40% Repairs&Maintenance Building $ 9,100 $ 5,842 $ 3,258 64.20% >. $ 63,700 $ 44,274 $ 19,426 69.50% Repairs&Maintenance-Landscapi $ 1,079 $ - $ 1,079 0.00% $ 7,553 $ - $ 7,553 0.00% Utilities-Water $ 250 $ 93 $ 157 37.38% $ 1,750 $ 602 $ 1,148 34.40% Utilities-Gas/Electric $ 4,300 $ 3,806 $ 494 88.51% '+ $ 34,600 $ 31,130 $ 3,470 89.97% Utlites-Trash $ 450 $ 1,834 $ (1,384) 407.58% : $ 3,150 $ 5,471 $ (2,321) 173.67% Telephone $ 150 $ 140 $ 10 93.01% '.'. $ 1,050 $ 972 $ 78 92.59% Insurance $ 521 $ - $ 521 0.00% $ 3,645 $ - $ 3,645 0.00% Total Expenses $ 30,850 $ 23,767 $ 7,083 77.04%1 1t $ 220,448 $ 176,771 $ 43,677 80.19% tlyeralinginrome $ 36,9 5 $ :. 4U092 $ d 3,192 14&fi k $ 24;te $ 231,994 $ 39,192 31634#t# Equipment Replacement Reserve $ 9,186 $ 9,639 $ (453) 104.93% $ 64,302 $ 67,470 $ (3,168) 104.93% 27714 $ 3OA54 $ 7740 109. 1# .,. $ Mi$00 $ 2$4,324 $ 30,024 120;18°- lnvest2000-invest • Parkview Office Complex • Vacancy Rate Schedule by Suite January 1999 Square S Suite 9 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 is unimproved) 928 108 Senator Kelly 785 112 Assemblyman Battin 1,406 114 Chamber of Commerce 1,478 118 Goodwill Industries 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) 841 201 U.S.District Court 604 203 Accounting Services 480 205 Coachella Valley Economic Partnership 700 208 Desert Springs Investments 960 210 Wilson,Pesota&Pichardo 3,040 211 Alzheimer's Association 937 InvespVacancy Report 0 Parkview Office Complex • Vacancy Rate Schedule by Suite January 1999 Suite Square No. Tenant Feet 217 Mcmillan 775 220 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= 5.60% 73-720 Fred Waring Drive-One Story Building 100 State of California-Water Resources 15,233 102 Vacant(Lease has been signed and sent to the State Department-Moved in February 5,2000) 4,396 Total Square Footage 19,629 Vacancy Rate-0.00% Overall Vacancy Rate for Both Buildings: Vacancy Rate--1,769/51,191= 3.46% Occupancy Rate-49,422/51,191 96.54% Invest;Vacancy Report • City of Palm Desert Desert Willow Budget Vs Actual For the month of January 2000 Budgeted Actual Budgeted Actual January January $ Percentage Year to Year to $ Percentage Revenue 2000 2000 Variance Variance Date Date Variance Variance Course&Ground $ 732,570 S 544.473 $ (188,097) 74.32% $ 2,313,167 $ .2,239.022 $ (74,145) 96.79% Cans $ 46,175 $ 32,435 $ (13,740) 70,24% S 166.900 $ 94,237 $ (72,663) 56.46% Golf Shop $ 72,500 $ 63,918 $ (8.582) 88.16% $ 257,050 $ 322,207 $ 65357 125.35% Range $ 5,000 $ 1,615 $ (3,385) 32.30% $ 18,000 $ 7,132 $ (10.868) 39.62% Food&Beverage $ 97,550 $ 46,501 $ (51,049) 47.67% $ 345,300 S 240,192 $ (105,108) 69.56% Interest Income - $ 1,500 $ 1,929 $ 429 128,60% $ 10,500 $ 20,815 S 10,315 198,24% Total Revert es 95 295 S 690 871 S f264.424) 72.17% S 3.110.917 2 92 605 187 12 93.98 Payroll Proshop $ 8,983 $ 16,626 $ (7,643) 185.08% $ 54,617 $ 77,062 $ (22,445) 141.10% Can S 33,581 S 16.972 $ 16,609 50.54% $ 164,780 S 98,416 $ 66,364 59.73% Course&Ground $ 97,828 S 121,037 $ (23,209) 123.72% $ 708,132 $ 779,716 $ (71,584) 110.11% Golf Operations $ 21,564 $ 26,684 $ (5,120) 123.74% $ 137,261 $ 153,601 $ (16,340) 11L90% General&Administration $ 30,977 $ 23,850 $ 7,127 76.99% $ 196,992 $ 179,046 S 17.946 90.89% Food&Beverage $ 40,121 $ 30,486 $ 9,635 75.99% $ 196,850 $ 142,234 S 54,616 72.26% Total Pa roll 233,054 235,655 2 1 101.12% S 1,458,632 1 430 075 S 28,557 98.04% Other Expenditures Perimeter Landscaping S 2,651 $ - $ 2,651 0,00% S 18,557 $ - $ 18.557 0.00% Proshop $ 5.125 $ 15,296 $ (10,171) 298.46% $ 30,275 $ 46,731 S (16,456) 154.36% Proshop-COGS $ 39,875 $ 31,343 $ 8,532 78.60% $ 141,380 $ 181,981 $ (40,601) 128.72% Can $ 44,612 $ 43,056 $ 1,556 96.51% $ 222,930 $ 204,665 $ 18,265 91.81% Course&Ground-North Course S 41,345 $ 41,807 $ (462) 101.12% $ 399,945 $ 431,511 $ (31,566) 107.89% Course&Ground-South Course S 47,400 $ 51,907 $ (4,507) 109.51% $ 387,000 $ 456,114 $ (69.114)• 117.86% Course&Ground-Desert Pallet N 3,000 $ 2,842 $ 158 94.73% $ 18,800 $ 20,257 $ (1,457) 107.75% $ Course&Ground-Desert Pallet-S $ 2,500 $ 2,344 $ 156 93.76% $ 15.300 $ 17,226 S (1,926) 112.59% Golf Operations $ 1,100 $ 3,172 $ (2,072) 288.36% $ 25,400 $ 20,816 S 4,584 81.95% General&Administration $ 69,652 $ 57,274 $ 12,378 82.23% S 410,571 $ 352,137 $ 58.434 85.77% Ran¢e $ 300 $ 2,532 $ (2,232) 844.00% $ 18,050 $ 16,394 S 1,656 90,83% Food&Beverage $ 7,565 $ 9.931 $ (2,366) 131.28% $ 46,805 $ 58.I05 $ (11.300) 124.14% Food&Beverage COGS $ 32.191 $ 17.080 $ 15,111 53.06% $ 113,829 $ 93,795 $ 20,034 82,40% Management Fee S 25,000 $ 25,000 $ 100.00% $ 175,000 $ 173,299 $ 1,701 99.03% Financing/Lease $ 7.293 $ 5.952 $ 1,341 81.61% $ 53,071 S 44,017 $ 9.054 82.94% Total Other Expenditures 329 609 309 536 20 073 93.91% S 2.076.913 2,117,W 40,135 101.93% David Leadbetter Academy Learning Center Revenues S 50,000 $ 47,456 $ (2,544) 94.91% S 138,500 $ 129,424 $ (9,076) 93.45% Reimbursements to David Leadbetter S (42,500) $ (40,338) $ 2,162 '94.91% $ (117,725) $ (109,348) $ 8,377 92.88% Other Expenditures S (100) $ (1,377) $ (1,277) 1377,00% S (7,450) $ (9,639) $ (2,189) 129.38% Learning Center Inc (Loss) $ 7,400 $ 5.741 $ (1,659) 77 58% S 13 325 S 10,437 $ (2.888) 78.33% Operating Income(Loss) S 400,032 $ 151,421 $ (248,611) 37.85% $ (411,303) $ (613,081) $ (201,778) 149,06% Equipment Reserve Replacement 17,164 40.822 $ 23.658 237.84% 120.148 285,754 S 165,606 237.84% Net Income Loss 82 968 S 110.599 272 269 28.89% (531.451) 899 835 367 384 169.1 Snapshot of Golf Rounds Budgeted mo Actualmoo) Variance Variance% Budgeted td Actual vtd Variance Variance% Resident 2,972 2,113 (859) 71% 12,371 9,433 (2,938) 76% Non Resident 5,192 3,855 (1,337) 74% 20.438 22,071 1,633 108% Other 88 26 (62) 30% 471 208 (263) 44% Com limentary 361 449 88 124% 1454 2058 604 142% Total 8,613 6,443 (2,170) 75% 34,734 33,770 (964) 97% Dw2000;Financial Statement \ § { $ c:l00 ; § ; , § on ■ \ ) /! ) k ( / ) / ° ° ! ! 2 ) ) ) }! 3 ) § ® ) } ` ) < {} / �a | a � } �ƒ00 | | ) § ) � ) � ) ! / $ . § \\\ -----. - 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M C y h$8 a O O O P o y N v m N c _ ��b - �S ac `om YZ Km LL a n ? n n n -n O N ❑ N �"'C N FQL' YC FCQ o pp� o c O C a g }E d g Yi EE.8 d g g x C g E E � � E 2 E v v � . a �� E E E B Ktt � v> > �m oa tt tttttttttt > > qKu rmm =�Qa Y FEm' 6 uy4� nttKK pF '" en_ �Up 00 FE6 ABC rv_ _ KKKKKKK P U � > O �. tttttt g't 6e 6e Ge 6e 6e�� m y > co #u° Q z° eKKtt d$ rESvg: �__sSn agE >�c a z= C j j E j Y� jm �Z ~gym Fs nvnn �<Y rvvnn �� - ma �m6 2 f } F F f� y EyEy ` _Ey EyEy ^ yCy� rEgEEy� �EgYy eE Y �$` / ƒ � 7§ } \ ; § � � ( ) J ; f 7 { Z . | ! | ! a (- , § § 7 = a ! ! t ■ 7 § ; B2 } 0) � O ra 12 f a o /) � k ) / kt 7 ! \ / E CL ° ! § t � -D Goa _ & § 0 2t2 0 § § Ir I § 0 , & v ) | c ` ƒ 0CL 0 ! � § � , L + ) cc k It { ) 0 0 ` \ kkk % § k4 \ . § § / $ § • Desert Willow • Breakdown of Rounds per point of sale system Desert Willow - Combined Analysis- January 2000 Resident 2,113 $ 95,085 $ 45.00 32.80% Non-Resident 3,855 $ 453,748 $ 117.70 59.83% Other 26 $ 260 $ 10.00 0.40% Complimentary 449 $ 1,260 $ 2.81 6.97% Desert Willow Totals 6,443 550,353 85.42 100.00% Dw2000;Disz AVG RD SDesert Willow • Breakdown of Rounds per point of sale system FIRECLIFF COURSE- JANUARY 2000 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 343 $ 15,435 $ 45.00 8.87% Resident Fee-Weekday 631 $ 28,395 $ 45.00 16.32% Resident Fee-Twilight 17 $ 765 $ 45.00 0.44% Total Resident 991 44,595 45.00 25.63% Non Resident Wholesale - Replay 37 $ 3,145 $ 85.00 0.96% Posted- Replay 18 $ 1,530 $ 85.00 0.47% Posted Weekend 558 $ 86,236 $ 154.54 14.43% Posted Weekday 576 $ 70,748 $ 122.83 14.90% Leadbetter Fee 2 $ 150 $ 75.00 0.05% IROC Member Guest Twilight 5 $ 400 $ 80.00 0.13% IROC Des. PRTY Wkdy 38 $ 2,470 $ 65.00 0.98% IROC Member Guest Twilight 3 $ 240 $ 80.00 0.08% IROC Designated Party WKND 59 $ 4,690 $ 79.49 1.53% IROC Designated Party-Twilight 12 $ 648 $ 54.00 0.31% IROC- Replay 2 $ 160 $ 80.00 0.05% Wholesale Weekend 143 $ 18,304 $ 128.00 3.70% Wholesale Weekday 156 $ 16,224 $ 104.00 4.04% Super Twilight 29 $ 1,305 $ 45.00 0.75% Twilight 283 $ 24,474 $ 86.48 7.32% Fee Special Event Variable 557 $ 58,891 $ 105.73 14.41% Total Non Resident Rounds 2,478 289,615 $ 116.87 64.10% Other Rounds Junior Walking 20 $ 200.00 $ 10.00 0.52% Total Other 20 200.00 10.00 0.52% Complimentary VIP 48 $ - $ - 1.24% PGA Member 135 $ 1,200.00 $ 8.89 3.49% COD/PDHS 50 $ - $ - 1.29% Donation 44 $ 60.00 $ 1.36 1.14% Employee 100 $ - $ - 2.59% Employee Guest - $ - $ - 0.00% Total Complimentary 377 1,260.00 3.34 9.75% Total Round (FireClifi) 3,866 $ 335,670 $ 86.83 100.00% Da2000;Die AVG RD ' • Desert Willow • Breakdown of Rounds per point of sale system MOUNTAINVIEW COURSE- JANUARY 2000 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 351 $ 15,795 $ 45.00 13.62% Resident Fee-Weekday 745 $ 33,525 $ 45.00 28.91% Resident Twilight 26 $ 1,170 $ 45.00 1.01% Total Resident 1,122 50,490 45.00 43.54% Non Resident Posted Fee - Weekend 298 $ 47,040 $ 157.85 11.56% Posted Fee - Weekday 298 $ 36,832 $ 123.60 11.56% IROC- Designated Party (WKDY) 19 $ 1,235 $ 65.00 0.74% IROC- Designated Party (WKND) 16 $ 1,280 $ 80.00 0.62% IROC- Mbr. Guest- (WKND) 2 $ 224 $ 112.00 0.08% IROC- Mbr.Twilight 1 $ 80 $ 80.00 0.04% IROC- Des. Party Twilight 1 $ 90 $ 90.00 0.04% Wholesale Weekend 132 $ 16,896 $ 128.00 5.12% Wholesale Weekday 194 $ 20,176 $ 104.00 7.53% Twilight Fee 145 $ 12,686 $ 87.49 5.63% Super Twilight 40 $ 1,800 $ 45.00 1.55% Wholesale - Replay Fee 15 $ 1,275 $ 85.00 0.58% Passbook (WKND) 2 $ 220 $ 110.00 0.08% Leadbetter Fee 2 $ 100 $ 50.00 0.08% Fee Special Event Variable 212 $ 24,199 $ 114.15 8.23% Total Non Resident Rounds 1,377 164,133 $ 119.20 53.43% Other Rounds Junior Walking 6 $ 60 $ 10.00 0.23% Total Other 6 60 10.00 0.23% Complimentary VIP 14 $ $ - 0.54% PGA Member 33 $ $ - 1.28% COD/PDHS 4 $ $ - 0.16% Donation 5 $ $ - 0.19% Employee 16 $ $ - 0.62% Total Complimentary 72 - 2.79% Total Round (Mountainview) 2,577 $ 214,683 $ 83.31 100% Dw2000;Diaz AVG RD City of Palm Desert Desert Willow Cash Reserve Analysis for the month of January 2000 Cash Reserve Analysis One Month Required Reserve $ 500.000.E Cash on Hand $ 713,946.60 Variance- Favorable Unfavorable $ 213,946.60 PalmDesert Recreation Facilities Corporation Income Statement Jan-00 Jan-00 k % Budget Actual Variance Variance Food & Beverage Revenues $97,550 $46,501 ($51,049) 47.67% Total Revenues $97,550 $46,501 ($51,049) 47.67% Salaries $40,121 $30,486 $9,635 75.99% Cost of Goods Sold-F&B $32,191 $17,061 $15,130 53.00% Food & Beverage Expense $7,565 $9,931 ($2,366) 131.28% Total Expenses $79,877 $57,478 $22,399 71.96% Net Income (Loss) $17,673 ($10,977) Note: The above revenues and expenditures are also included in the Desert Willow analysis. Dw2000;PDRFC Budget AGENDA INVESTMENT & FINANCE COMMITTEE WEDNESDAY, January 26, 2000-- 11:00 A.M. NORTH WING CONFERENCE ROOM I. CALL TO ORDER II. ROLL CALL III. APPROVAL OF MINUTES Rec: Approve the Minutes of December 15, 1999 as submitted. Action: IV. ORAL COMMUNICATIONS A. Any person wishing to discuss any item not otherwise on the agenda may address the Investment & Finance Committee at this point by giving his or her name and address for the record. Remarks shad be limited to a maximum of five minutes unless additional time is authorized by the Chairman. B. This is the time and place for any person who wishes to comment on non- hearing agenda items. It should be noted that at the Investment & Finance Committees discretion, these comments may he deferred until such time on the agenda, as the item is discussed. Remarks shall be limited to a maximum of five minutes unless additional time is authorized by the Chairman. V. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks for Section 4 Rec: Report by Carlos Ortega. Action: B. Bond Issuance by Palm Desert Financing Authority Rec: Status Report on issuing new bonds. Cash Balance available to fund projects. Action: AGENDA - INVESTMENT & FINANCE COMMITTEE January 26, 2000 VI. NEW BUSINESS A. City and Redevelopment Agency Investment Schedule for December. 1999 Rec: Review and submit to the next City Council agenda. Review the presentation on the investment graphs. Review the investment activity during the month of December. Review status of capital projects and cash flow projections. Action: B. Review Short Term Investments Maturing in January. 2000 Rec: Review investments in 1) collateralized deposits; 2) treasury bonds and notes; and, 3) agencies discount notes. Action: C. State of California Local Agency Investment Fund Monthly Reports for November, 1999 Rec: Informational item for the Committee to review. No action required. D. Monthly Financial Report for City Council for December, 1999 Rec: Report and submit to City Council. Action: E. Parkview Professional Office Buildings - Financial Reports for December. 1999 Rec: Review and file report. Action: F. Desert Willow Golf Resort Financial Information for November and December, 1999 Rec: Review and file report. Action: G. Palm Desert Recreation Facilities Corporation Income Analysis for December. 1999 Rec: Review and file report. Action: AGENDA - INVESTMENT & FINANCE COMMITTEE January 26, 2000 H. McCallum Theatre Finance Reporting for 99/00 Rec: Review and file report. Action: I. Management Letters for Housing Authoritxand Desert Willow Golf Resort for the year ending June 30. 1999 Rec: Report and submit to City Council. Action: VII. REPORTS AND REMARKS A. Reports and Remarks by any Committee Member 1. Legislation Update—Thomas Jeffrey B. Items to be placed on the Next Agenda VIII. NEXT MEETING DATE Next regularly scheduled meeting is: IX. ADJOURNMENT I hereby certify under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert Investment and Finance Committee was posted on the City Hall bulletin board not less than 72 hours prior to the meeting. Dated this January 20, 1999. Veronica Abarca, Recording Secretary Al Minutes Finance Committee CONVENE On December 15, 1999, the Investment & Finance Committee was called to order at 11:00 a.m. by Mr. Paul Gibson. ROLL CALL Russell Campbell, Jim Ferguson, Paul Gibson, Thomas Jeffrey, Murray Magloff, Carlos Ortega, Bill Veazie and Veronica Aharca, recording secretary. Sheila Gilligan, Assistant City Manager for Ray Diaz Bob Spiegel, Council Member for Buford Crites APPROVAL OF MINUTES On a motion by Mr. Campbell, seconded by Mr. Ortega, the Minutes of the November 17, 1999 meeting were approved as submitted. ORAL COMMUNICATIONIN None. OLD BUSINESS A. Status of Public and Private Partnerships Background Checks for Section 4 There were no changes to the previous month's report. B. Bond Issuance by Palm Desert Financing Authority There were no changes to the previous month's report. NEW BUSINESS A. City and Redevelopment Agency Investment Schedule Mr.Jeffrey stated that the hook value of the City Portfolio as of November 30, 1999 was $153 million. The decrease from October is due to debt service and improvement costs at Bighorn. The hook value of the Redevelopment Agency Portfolio as of November 30, 1999 was $143.8 million. The increase from October is a result of interest income. 1 Minot Finance Committee Receive and file reports. B. Review Short Term Investments Maturing in Decemher, 1999 Mr. Jeffrey stated that some commercial paper would be maturing in December,those funds will be used to meet cash requirements until the tax increment is received for the City and Redevelopment Agency in January. Mr. Jeffrey asked if there were any questions. Mr. Ferguson asked if the County administered the City portion of the tax increment for the City. Mr. Gibson stated that they do manage our portion of the tax increment and distribute it to the City in January and May. The Redevelopment Agency hold improvement funds in a trust and administers those funds for the County of Riverside. Receive and file report. C. State of California Local Agency Investment Fund Monthly Report Mr. Gibson reviewed the LAIF Statement for October, 1999. The City had a balance of$14.4 million and the Redevelopment Agency had a balance of $7.5 million at an interest rate of 5.274% as of October 31, 1999. Receive and file report. D. Monthly Financial Report for City Council for the month ending November. 1999 Mr. Gibson stated that currently revenues are at 87 million compared to a budgeted $6.6 million. Overall TOT reflects an 8% increase in revenues. Property taxes will not be reflected until December/January. Year to date we are $1 million over budget. Mr. Gibson stated that the expenditures are all on track with budget. The Redevelopment Agency will not show any revenues until the Tax Increment is received in January. Receive and file report. 2 Minut Finance Committee E. Parkview Professional Office Buildings - Financial Reports for the month ending November. 1999 Mr. Gibson stated that Parkview Office Complex is doing well. Revenues are $41,000 ahead of budget and expenditures are below budget. The current net income is at$164,361. The tenant improvements have been completed and the final agreement has been reached. Currently awaiting execution of the agreement by the State of California Rehabilitation. Their move in date is now estimated at February 1, 2000. Receive and file report. F. Desert Willow Golf Resort Financial Information for November, 1999. Mr. Gibson stated that normally Gregg Lindquist of Kemper Sports gives a summary, with regards to items F & G, to the committee. This month however, the computer's hard drive went down. The hard drive has been replaced and information is being retrieved from the hack up tapes. A report will be available for the committee at the January meeting. G. Palm Desert Recreation Facilities Corporation Income Analysis for November. 1999 Continued to the January meeting. REPORTS AND REMAR NCS Mr. Gibson stated that due to,the Annual CMTA Conference, the January 19, 2000 meeting will need to he postponed to January 26, 2000 at 11:00 a:m. Mr. Gibson stated that the final draft of the Treasury Policies and Procedures Manual is currently being bound and printed. The manual will then he submitted to the Government Finance Officers Association for award. Mr. Ferguson requested a meeting with Mr. Gibson and Mr.Jeffrey to review the Investment Committee's policies and materials. NEXT MEETING DATE The next Investment & Finance Committee meeting will be held Wednesday, January 26, 2000 at 11:00 a.m. 3 Minute Finance Committee ADJOURNMENT Upon motion by Murray Magloff and seconded by Russell Campbell the Investment& Finance Committee adjourned at 11:50 am. Respectfully submitted, 1 Veronica L. Abarca, Recording Secretary 4 City of Palm Desert Cash Balances Available 6/30/99 Trust Refunded Amount Funds Bonds General Fund: 27,396,901 Special Revenue Fund #1.#2 25,385,757 1,081,368 Debt Service Funds#1.#2 31,109,998 21,688,725 72,000,000 Trust Deposits#1.#2 1,880,474 2,445,804 Enterprise Funds 2,771,911 Capital Projects 22,231,274 68,014,119 Total All Funds(City&RDA) 276,006,3311 110,776,315 93,230,016 72,000,000 #1(Not available for use to purchase Land other than for specific use of revenue) #2(May not loan or transfer to another fund.) General Fund Review Current Fiscal Year General Fund: Amount Beginning Cash Balance $ 27,396,901 Less: Reserved Cash for Encumbrances, Equipment,Retiree Health (7,877,371) Plus: Cash in Other Funds Contributed by G.F. 13,423,917 Revised Beginning Balance $ 32,943,447 Additions/Deletions 1999/2000 Less: RDA Loan for Land (6,600,000) Less: Negative Cash Loan to Fund 400 (10,500,000) Less: Minimum Cash Flow Requirement (Dry Revenue Months) (7,000,000) Balance Available#1 $ 8,843,447 #1 Note:Amount available to purchase land, loan to RDA or construct Capital Imp. #2 Note: Policy to have one year worth of cash in G.F. Below level now. #3 Note: Interest that will not be received due to loan & Negative Cash 850,000 M1 Year 2000 Fund (400) Current Fiscal Year Beginning Cash 5,155,023 Transfer to new Fund (Mall Parking Structure) (10,000,000) RDA Projects shifted to City (5,646,731) Ending Cash (10,491,708) STATE OF CALIFORNIA • PHILIP ANGELIDES, Treasure OFFICE OF THE TREASURER SACRAMENTO Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 December, 1999 Statement CITY OF PALM DESERT - Account Number : 98-33-621 Attu: CITY TREASURER 73510 FRED WAKING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 12,115,828.37 Total Withdrawal : 0.00 Ending Balance : 12,115,828.37 cam . \/A/T Page : 1 of 1 0 0 0 0 N O o D a o m W o o n X + y Z y O D 3 m (a1 om 0 0 1 oZ Z W = N D (A c 0 IA N 140 N N N N N C + • dy 7 y y V O + N O• p a 0. O N AAgo a ? ' N coo W OOo V coo Im O W N Co W y CL A M N N N N N N jD ie ccn a W W i oo o ro � NmtoUn O CDAl a w In W Oo Pi N w1,40" In OO N i N O y dS , O CL N N N N N N C "v W °= ' ^' w N S w CL D Q1 O1 'D ►; to + co A m ° 0 W ' N N V tAn o w -y m T 3 M 7 V N N N N N N N N f CL CL Co L C w W pr w � m y ° O N N N N N N M n _ N 0. CO) C O N co y C e co to en 0 N .. CL .6- O V O o cnn coo O - y _ •a M D d V N N N N N N n .n c 10 � OD N + I► m e .Oa N V ca O o C O 6 ry a as w H m ca //Zol N N N N Y/ O O w .O► C CL CL W in V °. 0 _ N A N tJ1 A y. ,*1 . C N N N N •N N r ac'o o ea W y y� ca — 171 N N N M M M r;:',: y Z o A 171 O IWO t'71 N t •--Ym. _ N O O O r N N N N O. o V in N �71 3 N N ° � W � m se O G 'coo y O N N N A .•,N. 3 M Of O 0 N lw N N A. C STATE OF CALIFORNIA . PHILIP ANGELIDES, Treasure OFFICE OF THE TREASURER SACRAMENTO Local Agency Investment Fund ro PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 December, 1999 Statement PALM DESERT REDEVELOPMENT AGENCY Account Number : 65-33-015 Attn: TREASURER 73-510 FRED WARING DRIVE PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 7,655,294.71 Total Withdrawal : 0.00 Ending Balance : 7,655,294.71 r 1 .. ,S\ -j otel•, Page : 1 of I M e to a w N w Q m r. 0 N o p N N N > C W..- c. COO IS lu ci O d N N N N 4* N in in CD CD CM 94 ci Z W N Vol N 4* N M .T _ �. W O .9 .9. 9 V �O It O Q r ^ N Q N N N N N 4* m O N N N N M Cq Z t0 m m A N fa � ��y f9 t0 w N N to a O ^L .� c tD C Go N M A O co to o or� O c N m 0 N 0m �° a L a m y� _ �. inN M N N M w N O 0 > C W �+ 0 O V O V a V l~0.0 C 0 Am N t00 two W N a a 'O O O C to N N N w 4* 40 �y0 cn 0O ` a cc to CO coo N N �Of 'N C 9 r O IQ �' 10 li to W w 4* N w 4* tl► ' O O 0to 9 to t0 to O N N O O O a C y n t0 (aU) A to O c0 O " Cq to Of II r 'O t0 t0 aj � ` O m O t f f00 w w N w N N 1 w ' fi CL ti m m C y cm T ti ttoo m O � t09 Hfion \° O � 0 u O 'O a0 Uf. 'O .- 0 m N toH O C N �t0 M w w w w w w O t0 0 O C O O C _ O 0 } 'AO Q CN.) N 7 m Z ZI- " F 0 0 wO O � V m m � tm W tL � ILC a Z + d U LU w a a w a a R' Cc .m. .O. .O. .0 w w w p a Q a o 0 to o 0 0 0 F F w F 4 m tJ c) 0 w a Z Z Z Z T E R MEMO - 0 F F I C E To: The Legislative Committee of the Cq of Palm Desert From: Paul S. Gibson, City Treasurer Subject: Technical Amendments to California Government Code Date: 24 January 2000 RECOMMENDATION By minute motion, that the Legislative Committee recommend to the City Council that the City of Palm Desert sponsor technical amendments to California Government Code Sections 53601(f) and (g) in order to correct errors in the maturities of investment instruments. BACKGROUND The City Treasurer is currently authorized, under both the California Govemment Code and the City of Palm Desert("City' Statement of Investment Policy, to buy bankers's acceptances and commercial paper as short-term investment instruments. The purchase of commercial paper is particularly important since it is the most profitable short-term investment instrument. alifomia Government rode Sections 53601 (t)and(g)limit the maximum stated maturity of bankers's acceptances and commercial paper that local agencies can purchase, to 270 days and to 180 days, respectively. These figures are in error. In the financial markets,bankers's acceptances and commercial paper have maximum stated maturities of 180 days and 270 days, respectively(Girard Miller, Investing Public Funds, 2nd Edition, Government Finance Officers Association, Chicago, IL, 1998,pp. 139-140). The net effect of the aforementioned Cade errors is to deprive the City of the ability to invest in commercial paper beyond six months. Consequently, the City must invest in alternative short- term instruments that are less profitable. Staff recommends that the City of Palm Desert sponsor a technical amendment bill during the current legislative session to correct these errors. No opposition is anticipated. On 22 January 2000, the Board of Directors of the California Municipal Treasurers Association voted 13-0 to support the City of Palm Desert if it sponsors these amendments. 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N " Z 8 N Q1 V q O T O W N b O O m j < yn O N C ~ O m ; m m m8 YIELD(%) $MILLIONS mom W A A A A m 0 m N w V O yy V m cm tD N A V �D N P V rC O t)i O fn O (T 0 ^. PORTFOUO (%) r ;'.. NO fts s A RMJN � ^"A.•t'M'�'.n1f',�"�.'d}.+E3nTH;!i's"'J:SE.��Ji �p N v + a 9 D , w m a+"5&•�'d^yv'r3r£.+`"c�i 16�€zYr. D �c q H 2� W F o 8 O .gm m zz� o �o � yyya m > m C i0m• j ^2 '9 m N IJ t0 uFiv m'� Tv � m 6 6 = x ° 0 v O a r>r D < m N m 9 c < 9 r m ro N v fA D K3 exLi§.r,rr\�tiRSrup-C��` �%vStt::' < o D O 0 2 � � T'c s'tk A"Fki�':�;` 7& •Y-=�>sa� r„: tO 9 0 Z o � i O CITY OF PALM DESERT • INVESTMENT ACTIVITY REPORT • DECEMBER 1999 EXECUTIVE SUMMARY As of 12/31/99, total portfolio book value was approximately$161.3MM. This reflected a net increase of approximately$8.2MM from prior month due to an RDA advance and sales tax receipts. There was an unrealized portfolio net loss (market value- book value)of approximately$4M, based upon prevailing market interest rates. This was only a "paper" loss since there was no profit-taking. Significant changes in investment position are shown below: "United States Treasury-Coupon'. 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$30M DUE TO AMORTIZATION OF PREMIUMS. "Federal Agency-Coupon". The City 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. Government's"moral obligation"). Although unrated, considered "AAA." THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$7M DUE TO AMORTIZATION OF PREMIUMS. "Local Agency Investment Fund (LAIF)". 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 DID NOT CHANGE. "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. "City Loan 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 INCREASED BY APPROXIMATELY$6.6MM DUE TO AN ADVANCE TO RDA. "Fidelity 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$1.8MM DUE TO MATURING SECURITIES. "United States Treasury-Discount". 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. "HiphMark 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, underlying securities considered "AAA". THIS ACCOUNT BALANCE INCREASED BYAPPROX/MATELY$2.7MM DUE MOSTLY TO SALES TAX RECEIPTS. "State & Local 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 Notes". The City buys interest-bearing corporate medium-term notes with maturities of five years or less, to invest revenues. THIS ACCOUNT BALANCE DECREASED BYAPPROXIMATELY$13M DUE TO AMORTIZATION OF PREMIUMS. "Federal Agency-Discount". The City buys noninterest-bearing federal agency notes at a discount. THIS ACCOUNT BALANCE DID NOT CHANGE SIGNIFICANTLY. "Commercial Paper". The City buys high-grade, unsecured commercial paper at a discount,with maturities of 180 days or less, from Fortune 500 companies. 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G * $ z : kk ) ■ 2 § � ■ 2 „ ; \ � ■ kkk ,2 � \ , } YIELD(%) a A A (1� � ) �OQQQ111 T;()TSC�C Tr Tye O Z? cm J�yOm9e2yyy D8D DTTHIT g �_ oo z �V)m LD"�m �O�f�CO MO DO Om� m M*M>MM N> �Om�m O i c0 ym , Ts00 O co >No cm ycy(�j ommo�Of�l18 8(n m T D MM m O Z 1 m z�C r m c 00 o o m O m c 'R 0 m s eD 0 m 8 m Cn N F bl fA bl bl fA i9 f9(A f9 VI fA f9 di 31 m m gy 0 m T n z o tp y .� 8 7J D y+y y p� O< O L O r j yA W WNW WNtlf>W ppApp���� pV�mW Mmo o O 9 9 y p Np p Ap 8 P j N T fV N m '.f O (mTA++Q +rT�ppNm+mNOpp mIJ 5O6� 8 m A m NbN ONtC + m NtJiAON b T =J +a V +W 6 C moo8 �i+omPim'j8�$�og `�° o o P ++ Z z o N O N m pp y p ;p N m D 08 >W OOfObtTN m mma�pp Am OmJ+pO(N�fTA+pN (p V + { 2 N N foil V(T N(J=8 f�$�A 8 � g D y m c > 9 m wv, wv+w inwwwwwwv. �" �" z 8 agA c ° _ g O e2 9 e TO T WO ON m O T yC C O V V W«00000 W N p N �O p O Z 1 z (n o M n zo � <m O O y m Omm 0 m m�� YIELD(%) ro r 3 a A a A m m a N m O m cz P . W $MILLIONS O y L O m .n. ...;es-1:✓was":,r.dir: r o o $ z S . 8 8 8 PORTFOLIO (%) i N r b at1P q m u R fF 8 St S Q L row " 4�r,"sYCTY ".:?afl5i . D N r W A Gl � m c w c A r T O D D O y Z D + o r m Dm �. P Lu a i r C r1i " C O`m _ r r O F tmz 8 v . . , ersnss � =r p m a Nam D 0 3 Oam N y D Z m arD 'W' m m c D m m y Ar r y 00 O o N m( `.' . . . C r m a�n«,x�.tara-an„AY. ts55di.A,3sa.tFi.`rJ D Y y A m e a 9. . . . r . , m O < 6 e v r m w < o o . . . . r . G �p A � RVE+34zA'm2'-"�'?' -k=Y_Y.�,Y,aKFfe;; tet+ll aCit'r rD REDEVELOPMENT AGENCY• INVESTMENT ACTIVITY REPORT• DECEMBER 1999 EXECUTIVE SUMMARY As of 12/31/99, total portfolio book value was approximately$144.2MM (with SLGS). This reflected a net increase of $360M from prior month due to maturing discount securities and interest income. There was an unrealized portfolio net gain (market value-book value)of approximately$212M, based upon prevailing market interest rates. This was only a "paper" gain since there was no profit-taking. Significant changes in investment position, by security type, are discussed below: "State& Local Govt Series-Coupon." Palm Desert Financing Authority 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 DID 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 quality rating of"AAAm"; Moody's of"Aaa." THIS ACCOUNT BALANCE INCREASED BYAPPROXIMATELY$3.7MM DUE TO MATURING SECURITIES. "Local ocal Agency Investment Fund(LAIF)." RDA invests City's loan in $13MMM pool managed by State Treasurers 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 DID NOT CHANGE. "United States Treasury-Co 1pon." RDA buys interest-bearing U.S.Treasury notes with maturities of 2- 10 years to invest tax-exempt bond proceeds. Although unrated, considered"AAA". THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY$3M DUE TO AMORTIZATION OF PREMIUMS. "State &Local Goyt 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 yield and arbitrage rebate restrictions). Nonmarketable.Although unrated, considered "AAA." THIS ACCOUNT BALANCE DID NOT CHANGE. "United States 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 DID NOT CHANGE. "HighMark Sweep 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 BALANCE INCREASED BY APPROXIMATELY$99M DUE TO INTEREST COUPON INCOME. "Federal Agency-Coupon." RDA buys U.S.government 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. Govemmenfs"moral obligation"). Although unrated, considered"AAA." THIS ACCOUNT BALANCE INCREASED BY APPROXIMATELY$3M DUE TO AMORTIZATION OF DISCOUNTS. "Federal Agency-Discount". The City buys noninterest-bearing federal agency notes at a discount. THIS ACCOUNT BALANCE DID NOT CHANGE. "Commercial Paper'. The City buys high-grade, unsecured commercial paper at a discount,with maturities of 180 days or less,from Fortune 500 companies. THIS ACCOUNT BALANCE DECREASED BY APPROXIMATELY $3.4MM DUE TO MATURING SECURITIES. '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 INCREASED BY APPROXIMATELY$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 ACCOUNT BALANCE DECREASED BY APPROXIMA TEL Y$2M DUE TO AMORTIZATION OF PREMIUMS. to • c C � y n C m A ; m 30 N a p y m w Z n y � T m Cn co a) ^ L,) D cn 000 m N DD 03 m -4 TTT9 NNNN -+ = m m x CD c° N c f° Z D -ID 0 CD (a O. a`° 0 C0 0 O O ni d m O y O C On y A K -jZ d O 0 y W N -aO cps N to C 7 co =CD CD mC� coZ � � c � n � o A y N N 7 ^ n o ff ^ N C = o o n T y D 3 tJ O O Ln C ». � N Q W = ^ T m a o o N o > > o o 0 o O z '00 � o �D W A Gov ' ov CD r v M O y O y A N 7 0 O N O O 0 0 l v O O A W N y 0 0 O ° _r r p y �. N fD d N O O O C7 ° 3 -< O 0) y T� O 0 O 1 A ° n y ° w w o y O m o w o 5 ~ n 3 y+ D m r l< D N z n m mm m - m 00 -+ - N ? ? 0 0 0 ' O A n � m 18 ° o \ o o e o 0 0 0 0 e e o o , ° m O z r fo O co v+ En to <n to <n En to to to <n en V) to D O J N N NO) en W W (71 n-4 CD coA O O CO - CD co N C -n (n Vt O) O) (O A A O D O pp r co W N O n O 3 m m m m m m m m m m m m m m m C _ m mmmm mmm mmmmm m m rz cn � � mcn wcno wv, wu, cn cn � -y z A m � k B CP g k � 2 ) � . & < \ E ` k/�\ �\\\ �\\ '\\ 3 k \ ( � 0 DA v \ ^ � 7 ( ) ° a � SJ & - - E , z CD M� kk � 772 \ CD CD \ ( � § 69 a CD CD \ ( A 0 >— ; 2 . CD CD > M m \ % K� i A m � « E 22k0 P & = CL 2 © E - / fi § ( /ƒ} \ ) / } § < = > ( / E e \ © ] (n q . 0 � ( ( $ 0 ( CD § 8 g £ > ® ? ƒ # _ = C . .. ® ` CL - CD , ( m m loo w 0n m z / 2 - - - T \ \ > 0 % , , � § m m m m m m � � 0 STATE OF CALIFORNIA PHILIP ANGELIDES. Treasurer OFFICE OF THE TREASURER SACRAMENTO Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 November, 1999 Statement CITY OF PALM DESERT Account Number : 98-33-621 Attn: CITY TREASURER 73510 FRED WARING DRIVE PALM DESERT CA 92260 Transactions Effective Transaction Tran Confirm Authorized -Amount Date Date Type Number Caller 11-18-1999 11-17-1999 RW 610189 THOMAS JEFFREY - 2,600,000.00 Account Summary Total Deposit : 0.00 Beginning Balance : 14,715,828.37 Total Withdrawal : 2,600,000.00 Ending Balance : 12,115,828.37 r\, n C\j 1 _ 1 �-i O.' T Page : 1 of 1 F SYNOPSIS OF MINUTES LOCAL AGENCY ADVISORY BOARD Meeting of October 14, 1999 The first issue was an update of the Bay Area Toll Authority (BATA). Statute changed the Bay Area Toll Authority from a state entity to a local government, effective July 1 , 1998. BATA requested an exemption to the allowable limit of funds per agency to allow them time to hire staff to begin the process of investing their own funds. An exemption was granted from July 1 , 1998 through January 29, 1999, with the understanding that all monies exceeding the $30 million cap would be withdrawn on the specified dates. BATA complied with the exemption. The second issue was a report that LAIF is Y2K compliant and has a Business Continuity and Contingency Plan tested and approved. LAIF is currently operating on the Oracle system which has been tested and proven Y2K compliant by the Department of Information Technology. The third issue was the announcement that Agricultural Boards and Commissions have been approved to participate in LAIR ^.ALIFORNIA • • PHILIP ANGELIDES, Traasmai �1 V THE TREASURER _aro Local Agency Investment Fund PO Box 942809 Sacramento, CA 94209-0001 (916) 653-3001 November, 1999 Statement PALM DESERT REDEVELOPMENT AGENCY Account Number : 65-33-015 Attu: TREASURER 73-510 FRED WARING DRIVE ' PALM DESERT CA 92260 Account Summary Total Deposit : 0.00 Beginning Balance : 7,655,294.71 Total Withdrawal : 0.00 Ending Balance : 7,655,294.71 1 17 I Page : 1 of 1 A - SYNOPSIS OF MINUTES LOCAL AGENCY ADVISORY BOARD Meeting of October 14, 1999 The first issue was an update of the Bay Area Toll Authority (BATA). Statute changed the Bay Area Toll Authority from a state entity to a local government, effective July 1 , 1998. BATA requested an exemption to the allowable limit of funds per agency to allow them time to hire staff to begin the process of investing their own funds. An exemption was granted from July 1 , 1998 through January 29, 1999, with the understanding that all monies exceeding the $30 million cap would be withdrawn on the specified dates. BATA complied with the exemption. The second issue was a report that LAIF is Y2K compliant and has a Business Continuity and Contingency Plan tested and approved. LAIF is currently operating on the Oracle system which has been tested and proven Y2K compliant by the Department of Information Technology. The third issue was the announcement that Agricultural Boards and Commissions have been approved to participate in LAIF. POAD MONEY INVESTMENT A OUNT SUMMARY OF INVESTMENT DATA A COMPARISON OF OCTOBER 1999 WITH OCTOBER 1998 (DOLLARS IN THOUSANDS) OCTOBER 1999 OCTQBER 199ti CHANGE Average Daily Portfolio $ 31,939,867 $ 31,218,919 $ +720,948 Accrued Earnings ; 145,832 $ 147,354 $ (1,522) Effective Yield 5.391 5.557 -0.166 Average Life-Month End (In Days) 194 184 +10 Total Security Transactions Amount $ 14,156,318 $ 19,270,925 $ (5,114,607) Number 314 431 -117 Total Time Deposit Transactions Amount $ 678,600 $ 1,147,790 $ (469,190) Number 64 76 -12 Average Workday Investment Activity $ 741,746 $ 972,320 $ (230,574) Prescribed Demand Account Balances For Services $ 211,828 $ 177,619 $ +34,209 For Uncollected Funds $ 132,800 $ 130,565 $ +2,235 1 • PHILIP ANGELIDES • TREASURER STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) OCTOBER 31, 1999 PERCENTAGE CHANGEFROM TYPE OF SECURITY AMOUNT PERCENT PRIOR MONTH Government Bills S 2,01T,602 . 6.44 -0.34 Bonds 0 0.00 0 Notes 2,747,815 8.76 +0.13 Strips 0 0.00 0 Total Government S 4,765,417 15.20 -0.21 Federal Agency Discount Notes $ 3,262,514 10.41 +1.0 Ceritficates of Deposit 5,179,103 16.52 -2.17 Bank Notes 1,892,982 6.04 +0.4 Bankers'Acceptances - 0.00 0 Repurchases - 0.00 0 Federal Agency Discount Notes 3,538,064 11.29 +0.37 Time Deposits 2,575,490 8.21 +1.09 GNMAs 1,545 0.00 0 Commercial Paper 6,356,740 20.28 -3.89 FHLMC 15,190 0.05 +0.01 Coporate Bonds 2,298,060 7.33 +0.74 Pooled Loans 1,875,882 5.98 -0.61 GF Loans 727,700 2.32 +2.32 Reversed Repurchases (1,137,631) 3.63 -1.07 Total(All Types) $31,351,056 100.00 INVESTMENT ACTIV OCTOBER 1999 SEPTEMBER 1999 NUMBER AMOUNT NUMBER AMOUNT Pooled Money 314 $14,156,318 385 $17,460,262 Other 59 157,230 20 11,409 Time Deposits . 64 678,600 79 875,640 Totals 437 $14,992,148 484 $18,347,311 PMIA Monthly Average Effective Yield 5.391 5.274 Year to Date Yield Last Day of Month 5.265 5.224 2 I Pooled Money Investment Account 10/31/99 Portfolio Composition $31 .4 Billion Reverses Loans -3.63% Treasuries 8.30% Ix 15.2090 Corporate Bonds I 7.33% Time Deposits 8.21% STreasuries i . :: ;:: 9Time Deposits ................ _ Mortgages=;1'•ii€:. ■Mortgages 0.05% ®Agencies it Commercial i i': €.. i'• '•'•i:F�i iEii:= ■CD's/BN's Paper 20.28% = i i i i ; €'_. '•`' El Bankers Acceptances ■Repo 0 Commercial Paper Agencies p Corporate Bonds • 21.70% 0 Loans ®Reverses CD's/BN's 22.56% 3 _ POOLED MONEY INVESTMENT ACC&'. ,.w►tuwrY - ,rwws Art VAYs mouerr EFFECTIVE Raw' -FARKEQ 10/01/99 REDEMPTIONS BN FNB Chic 5.170% 10/01/99 5.170 $15,000 78 $168,025.00 5.241 BN FNB Chic 5.170% 10/01/99 5.170 50,000 78 560,083.33 5.241 BN FNB Chic 5.170% 10/01/99 5.170 50,000 78 560,083.33 5.241 CD Deutsche 5.250% 10/01/99 5.250 25,000 59 215,104.17 5.322 CD Deutsche 5.250% 10/01/99 5.250 50,000 59 430,208.33 5.322 CP GECC 10/01/99 5.550 50,000 1 7,708.33 5.627 CP GECC 10/01/99 5.550 50,000 1 7,708.33 5.627 CP GECC 10/01/99 5.550 50,000 1 7,708.33 5.627 CP GECC 10/01/99 5.550 50,000 1 7,708.33 5.627 CP Heller 10/01/99 5.360 50,000 46 342,444.44 5.471 CP GECC 10/01/99 5.090 50,000 78 551,416.67 5.218 CP GECC 10/01/99 5.090 50,000 78 551,416.67 5.218 CP Heller 10/01/99 5.240 50,000 87 633.166.67 5.380 CP FMCC 10/01/99 5.160 50,000 94 673,666.67 5.303 CP FMCC 10/01/99 5.160 50,000 94 673,666.67 5.303 CP GMAC 10/01/99 5.180 50,000 94 676,277.78 5.323 CP GMAC 10/01/99 5.180 50,000 94 676,277.78 5.323 CP JP Morgan 10/01/99 5.190 50,000 94 677,583.34 5.334 CP JP Morgan 10/01/99 5.190 50,000 94 677,583.34 5.334 CP GMAC 10/01/99 5.160 50,000 95 680,833.33 5.303 CP GMAC 10/01/99 5.160 50,000 95 680,833.33 5.303 Disc Notes FHLMC 10/01/99 4.460 50,000 361 2,236,194.44 4.733 Disc Notes FHLMC 10/01/99 4.460 50,000 361 2,236,194.44 4.733 PURCHASES CP Assoc 10/04/99 5.370 50,000 CP Assoc 10/04/99 5.370 50,000 CP Assoc 10/04/99 5.370 50,000 CP Assoc 10/04/99 5.370 50,000 CP GMAC 10/04/99 5.400 50,000 CP GMAC 10/04/99 5.400 50,000 CP Amer Exp 10/05/99 5.330 50,000 CP Amer Exp 10/05/99 5.330 50,000 10/04/99 REDEMPTIONS CP Assoc 10/04/99 5.370 50,000 3 22,375.00 5.447 CP Assoc 10/04/99 5.370 50,000 3 22,375.00 5.447 CP Assoc 10/04/99 5.370 50,000 3 22,375.00 5.447 CP Assoc 10/04/99 5.370 50,000 3 22,375.00 5.447 CP GMAC 10/04/99 5.400 50,000 3 22,500.00 5.477 CP GMAC 10/04/99 5.400 50,000 3 22,500.00 5.477 CP Household 10/04/99 5.300 50,000 35 257,638.89 5.401 CP Heller 10/04/99 5.360 50,000 49 364,777.78 5.474 CP GMAC 10/04/99 5.200 50,000 62 447,777.78 5.319 CP GMAC 10/04/99 5.200 50,000 62 447,777.78 5.319 CP JC Penney 10/04/99 5.360 50,000 90 670,000.00 5.508 CP FMCC 10/04/99 5.200 10,000 96 138,666.67 5.346 CP FMCC 10/04/99 5.200 50,000 96 693,333.33 5.346 4 POOLED.MONEY INVESTMENTIV al- d MA TURITY TRANS PAR DAYS AMOUNT EFFECTIVE: OAIE.,_ 3=-----DESGS®OH . ..__._ pAg .._.... YIELQ �Q➢1..---- -HELD _EARNED . ;YIELQ 10/04/99 REDEMPTIONS (continued) CP FMCC 10/04/99 5.200 50,000 96 693,333.33 5.346 CP FMCC 10/04/99 5.180 50,000 97 697,861.11 5.326 CP FMCC 10/04/99 5.180 50,000 97 697,861.11 5.326 CP JP Morgan 10/04/99 5.190 50,000 97 699,208.34 5.336 CP JP Morgan 10/04/99 5.190 50,000 97 699,208.34 5.336 CP FMCC 10/04/99 5.160 50,000 98 702,333.33 5.306 CP FMCC 10/04/99 5.160 50,000 98 702,333.33 5.306 MTN GMAC 6.050% 10/04/09 6.100 35,000 717 4,191,434.72 6.102 PURCHASES - CP Amer Exp 10/05/99 5.300 15,000 CP Amer Exp 10/05/99 5.300 50,000 CP Household 10/05/99 5.300 50,000 CP Household 10/05/99 5.300 50,000 CP Merrill 10/05/99 5.300 50,000 CP Merrill 10/05/99 5.300 50,000 CP SRAC 02/08/00 5.950 50,000 10/05/99 REDEMPTIONS CP Amer Exp 10/05/99 5.300 15,000 1 2,208.33 5.374 CP Amer Exp 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Household 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Household 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Merrill 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Merrill 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Amer Exp 10/05/99 5.330 50,000 4 29,611.11 5.407 CP Amer Exp 10/05/99 5.330 50,000 4 29,611.11 5.407 CP Comnwealth 10/05/99 5.650 10,000 5 7,847.22 5.732 CP Heller 10/05/99 5.400 50,000 7 52,500.00 5.533 CP Merrill 10/05/99 5.300 30,000 12 53,000.00 5.383 CP ConAgra 10/05/99 5.440 20,000 13 39,288.89 5.526 PURCHASES CP ConAgra 10/06/99 5.350 50,000 CP Amer Exp 10/08/99 5.230 50,000 CP Amer Exp 10/08/99 5.230 50,000 CP Text Fin 10/12/99 5.350 45,000 CP Heller 10/21/99 5.420 50,000 j CP GECC 03/01/00 5.830 40,000 CP GECC 03/06/00 5.830 50,000 CP GECC 03/06/00 5.830 50,000 10/06/99 SALES Trees Notes 5.625% 12/31/99 5.075 50,000 615 4,672,697,47 5.533 Trees Notes 5.625% 12/31/99 5.075 50,000 614 4,664,928.13 5.533 Trees Notes 5.375% 01/31/00 5.175 25,000 588 2,268,248.69 5.653 5 POOLED MONEY INVESTMENT ACC MATURITY TRANS PAR DAYS AMOUNT EFFECTIVE DATE. IYEE'. _ ➢ESCRQMOH ` ' DAZE l01 YIELQ _. HELD EARNED Y�LQ 10/06/99 SALES (continued) Trees Notes 5.375% 01/31/00 5.175 25,000 588 2,268,248.70 5.653 Treas Notes 5.375% 01/31/00 5.175 50,000 588 4,536,497.38 5.653 Trees Notes 5.500% 03/31/00 5.214 50,000 463 3,576,430.25 5.641 REDEMPTIONS CP ConAgra 10/06/99 5.350 50,000 1 7,430.56 5.425 CP Rohm 10/06/99 5.450 7,952 14 16,853.82 5.537 NO PURCHASES 10/07/99 REDEMPTIONS CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5:363 PURCHASES CP Armstrong 10/08/99 5.370 18,500 CP GECC 10/08/99 5.260 50,000 CP GECC 10/08/99 5.260 50,000 CP GECC 10/08/99 5.260 50,000 CP GECC 10/08/99 5.260 50,000 CP Rohm 10/08/99 5.300 50,000 CP Rohm 10/08/99 5.300 50,000 MTN Assoc 6.680% 06/05/00 6.030 7,000 MTN Assoc 6.330% 06/09/00 6.027 18,500 10/08/99 REDEMPTIONS CP GECC 10/08/99 5.260 7,000 1 1,022.78 5.333 CP Armstrong 10/08/99 5.370 18,500 1 2,759.58 5.444 CP GECC 10/08/99 5.260 50,000 1 7,305.56 5.333 CP GECC 10/08/99 5.260 50,000 1 7,305.56 5.333 CP GECC 10/08/99 5.260 50,000 1 7,305.56 5.333 CP Rohm 10/08/99 5.300 50,000 1 7,361.11 5.374 CP Rohm 10/08/99 5.300 50,000 1 7,361.11 5.374 CP Amer Exp 10/08/99 5.230 50,000 3 21,791.67 5.304 CP Amer Exp 10/08/99 5.230 50,000 3 21,791.67 5.304 CP ConAgra 10/08/99 5.600 14,200 9 19,880.00 5.685 CP GMAC 10/08/99 5.200 50,000 66 476,666.67 5.322 CP GMAC 10/08/99 5.180 50,000 98 705,055.56 5.327 CP GMAC 10/08/99 5.180 50,000 . 98 705,055.56 5.327 CP Household 10/08/99 5.170 50,000 102 732,416.67 5.319 CP FMCC 10/08/99 5.080 50,000 107 754,944.44 5.229 CP FMCC 10/08/99 5.080 50,000 107 754,944.44 5.229 6 o � • 3 0 v L y 0 t��••(}l, '� +n O � x v 1 P r Q u O a � * N N N M N O F � .. YY.O +!S .-� �A'O".-+ •O h � v1 � En o0 M O h O T W O ^ M d0 GM1 VE O +n h+:. R CO D\ C O o O GG',.i C ¢. � N N N O N O 6 O O Ca O ++ O O M m N2 'OD iD h 0 Vt N'1 p) M ✓b. Op M V1 a0 0 7 0 N 0 E N ^ N 0 7 0 U AO xt st It 4t 7t xt xt 'O O O O aO O W,":T N O R O �D En O o O O O R O\ O VY '0 %D � 0 7 �D O O N W � m M ao,N �o r- �o � Ya W n — G O ^ OLL po M O y j O \O h N 7 0p N O _ N o cc _ 7 O U m Z LL « cc OP? C U N m a y d l •• .o " a ra � o o .. `a E A ro W a°i 0a. a. 0 F w �1 PALM DESERT REDEVELOPMENT A COMBINED STATEMENT REVENUE AND EXPENDITURES CO 31-Dec-99 TOTAL RDA RDA RDA %OF ACTUAL (FAV)UNFAV BUDGET - YTD BUDGET ACTUAL TO YTD BUDGET VARIANCE REVENUES 1 Tax increment 28,323,686:00 14,161,843.00 995,076.13 7% 13,166,766.87 2 Interest 2,060,00600 1,030,000.00 514,362.26 50% 515,637.74 Sales of Property 0% - 3 Reimbursement From Other Agencies 725,000,00� 362,500.00 188,165.43 52% 174,334.57 Other Revenue - - 1,540.00 0% (1,540.00) Transfers to/from other funds 0% TOTAL REVENUES - 31,108,686:00- 15,554,343.00 1,699,143.82 13,855,199.18 FAV(UNFAV) EXPENDITURES Administrative Costs 776 720.00 388,360.00 303,038.85 78% 85,321.15 Professional Services 917,968.00 458,994.00 138,718.80 30% 320,275.20 Property Tax Administrative Fee - 520,000.00 260,000.00 - 0% 260,000.00 Cost of Inventory Sold 0% Payments to Other Governmental Agencies 9,383,200.00 4,691,600.00 (261,812.19) -6% 4,953,412.19 Bond Issuance Costs ' - - 0% - Bond Dismount - - 0% - 4 Interest And Fiscal Charges 10,924,886.00. . 5,462,443.00 4,160,214.44 76% 1,302,228.56 Principal Payments 3,100,000.60 1,550,000.00 340,000.00 22% 1,210,000.00 0% Capital Outlay - - - 0% - Office Equipment 10,000.00 5,000.00 1,105.20 22% 3,894.80 Undergrounding Projects 21,665.00 10,832.50 - 0% 10,832.50 Deep Canyon&Hwy 111 3,078.00 1,539.00 - 0% 1,539.00 El Paseo Improvements 2,755,000.00 1,377,500.00 - 0% 1,377,500.00 Parking Spaces 10,000,000.00 5,000,000.00 - 0% 5,000,000.00 Fred Waring Dr. Street Improvements 5,265,000.00 2,632,500.00 407,096.10 15% 2,225,403.90 1-10 Cook St Interchange 250.000.00 250,000.00 250.000.00 100% - 5 No. Sphere Infrastructure 8,960,307.00 4,480,153.50 7,219,303.65 161% (2,739,150.15) RDA Projects 5,005,144.00 2,502,572.00 - 0% 2,502,572.00 Desert Willow 5,139,019.00 2,569,509.50 32,123.54 1% 2,537,385.96 Land Purchases/Property Acquisition 4,300,000.00 2,150,000.00 0% 2,150,000.00 0% 0% 0% Transfers - - - 0% - Transfer Out Administrative Costs - - - 0% - Transfer(In)/Out Capital Exp Reimb - - 8.92 0% (8.92) Transfer Out Low/Mod Set-Aside 5,664,737.00 2,832,368.50 0% 2,832,368.50 0% TOTAL EXPENDITURES - 72,996,744.00 36,623,372.00 12,589,797.31 24,033,574.69 1. 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' ) � � . � � k |■ j § § \ " ) § ) § °Li • City of Palm Desert Parkview Office Complex December-99 December-99 # % YTD YID # % Budget Actual Variance Variance Budget Actual Variance Variance Revenues Rental $ 66500 $ 59,791 $ (6,709) 8991% ,�. $ 388,000 $ 370,484 $ (17,516) 95.49% Dividends/Interest $ 1,250 $ 4,286 $ 3,036 342.89% $ 7,500 $ 24,422 $ 16,922 325.62% Total Revenues $ 67,750 $ 64,077 $ (3,673) 9458% $ 395500 $ 394,906 $ (594) 99.85% Expenses Professional-Accounting&Auditing $ 5,800 $ 5,800 $ - 100.00% - $ 34,800 $ 34,800 $ - 100.00% Professional-Management Fee $ 5,500 $ 8,675 $ (3,175) 157.73% $ 33,000 $ 44,000 $ (11,000) 133.33% Tenant Improvements $ 3,700 $ - $ 3,700 0.00% 'z $ 22,200 $ 3,472 $ 18,728 15.64% Repairs&Maintenance Building $ 9,100 $ 15,968 $ (6,868) 175.48% $ 54,600 $ 38,431 $ 16,169 70.39% Repairs&Maintenance-Landscapi $ 1,079 $ - $ 1,079 0.00% <, $ 6,474 $ - $ 6,474 0.00% Utilities-Water $ 250 $ 100 $ 150 40.10% $ 1,500 $ 508 $ 992 33.90% Utilities-Gas/Electric $ 4,300 $ 3,384 $ 916 78.70% "` $ 30,300 $ 27,324 $ Z976 90.18% Utilities-Trash $ 450 $ 633 $ (183) 140.72% _' $ Z700 $ 3,637 $ (937) 134.69% Telephone $ 150 $ 168 $ (18) 112.01% '-. - $ 900 $ 833 $ 67 92.52% Insurance $ 521 $ - $ 521 0.00% -S $ 3,124 $ - $ 3,124 0.00% Total Expenses $ 30,850 $ 34,729 $ (3,879) 112.570/t _3 $ 189,598 $ 153,005 $ 36,593 80.70% rOperatfngncome $ . 36 900 $ 29,348 $ fifS52} '7953°fa $ ?C1 'Ni2 $ 243 901 $ 351999 117A8iTo� Equipment Replacement Reserve $ 9,186 $ 9,639 $ (453) 104.93% $ 55,116 $ 48,193 $ 6,923 87.44% eflilcdfne,- $ V,714 $ 19,769 $.>w.(8,005) .'71.72%. $ 150,786 $ V3,708 .$ 42,922, 128:47°e 1.vest;20004.nv st • Parkview Office Complex Vacancy Rate Schedule by Suite December 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 is unimproved) 928 108 Senator Kelly 785 112 Assemblyman Battin 1,406 114 Chamber of Commerce 1,478 118 Goodwill Industries 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) 841 201 U.S. District Court 604 203 Accounting Services 480 205 Coachella Valley Economic Partnership 700 208 Desert Springs Investments 960 210 Wilson,Pesota&Pichardo 3,040 211 Alzheimer's Association 937 Invest;Vacmcy Report • Parkview Office Complex Vacancy Rate Schedule by Suite December 1999 Suite Square No, Tenant Feet 217 Mcmillan T75 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= 5.60% 73-720 Fred Waring Drive-One Story Building 100 State of California-Water Resources 15,233 102 Vacant(Lease has been signed and sent to the State Department-Expected Occupancy-March 2000) 4,396 Total Square 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% [nvest;Vacmcy Report City of Palm Desert Desert Willow - Budget Vs Actual For the month of November 1999 Budgeted Actual Budgeted Actual November November $ Percentage Year to Year to $ Percentage Revenue 1999 1999 Variance Variance Date Date Variance Variance Course&Ground $ 360,331 $ 371,138 $ 10,807 103.00% $ 1,155,354 $ 1,380,944 $ 225,590 119.53% Cans $ 24,150 $ 14,240 $ (9,910) 58.96% $ 87,125 $ 48,585 $ (38,540) 55.76% Golf Shop $ 38,550 $ 48,525 $ 9,975 125.88% $ 138,250 $ 210,099 $ 71,849 151.97% Range $ 4,000 $ 2,052 $ (1,948) 51.30% $ 10,000 $ 4,242 $ (5,758) 42.42% Food&Beverage $ 53,400 $ 33,699 $ (19,701) 63.11% $ 172,950 $ 163,260 $ (9,690) 94.40% Interest Income $ 1.500 $ 1,708 $ 208 113.87% $ 7,500 $ 17,486 $ 9,986 233.15% Total Revenues 481.931 47 10 569 7.81% 1571179 1,824,616 $ 253,437 116.1 Payroll Proshop $ 8.621 $ 9,166 $ (545) 106.32% $ 37,013 $ 47,725 $ (10,712) 128.94% Cart $ 31,779 $ 13,227 $ 18,552 41.62% $ 99,080 $ 66,680 $ 32,400 67.30% Course&Ground $ 111,858 $ 117,072 $ (5,214) 104.66% $ 512,699 $ 551,486 $ (38,787) 107.57% Golf Operations $ 21,564 $ 24,357 $ (2,793) 112.95% $ 94,133 $ 105,921 $ (11,788) 112.52% General&Administration $ 30,335 $ 27,147 $ 3,208 89.43% $ 135,562 $ 130,689 $ 4,873 96.41% Food&Beverage $ 35,363 $ 21,509 $ 13,954 60.82% $ 93,974 $ 84,776 $ (902) 101.08% Total Pa oll $ 239.m S 212478 27_Q62 88.70% 962,361 1 987.277 (24.916) 102,59% Other Expenditures Perimeter Landscaping $ 2,651 $ - $ 2,651 0.00% $ 13,255 $ - $ 13.255 0.00% Proshop $ 3,125 $ (2,198) $ 5,323 -70.34% $ 21,175 $ 25,921 $ (4,746) 122.41% Proshop-COGS $ 21,203 $ 27,433 $ (6,230) 129.38% $ 76,040 $ 121,022 $ (44,982) 159.16% Can $ 30,612 $ 30,828 $ (216) 100.71% $ 144,206 $ 130,170 $ 14,036 90.27% Course&Ground-North Course $ 38,595 $ 54,061 $ (15,466) 140.07% $ 318,125 $ 353,314 $ (35,189) 111.06% Course&Ground-South Course $ 36,700 $ 49,996 $ (13,296) 136.23% $ 299,000 $ 365,784 $ (66,784) 122.34% Course&Ground-Desen Pallet-N $ 3,000 $ 2,694 $ 306 89,80% $ 13,800 $ 9,542 $ 4,258 69.14% Course&Ground-Desert Pallet-S $ 2,500 $ 2,458 $ 42 98.32% $ 11,300 $ 11,974 $ (674) 105.96% Golf Operations $ 1,100 $ 3,736 $ (2,636) 339.64% $ 23,200 $ 10,720 $ 12,480 46.21% General&Administration $ 61.011 $ 64,352 $ (3,341) 105,48% $ 291,018 $ 257,889 $ 33,129 88.62% Range $ 300 $ 2,042 $ (1,742) 690.67% $ 17,450 $ 13.833 $ 3,617 79,27% Food&Beverage $ 7,390 $ 9,070 $ (1,680) 122.73% $ 30,300 $ 33,143 $ (2,843) 109.38% Food&Beverage COGS $ 17,678 $ 13,685 $ 3,993 77.41% $ 56,690 $ 64,720 $ (8,030) 114.16% Management Fee $ 25,000 $ 25,000 $ - 100.00% $ 125,000 $ 123,299 $ 1,701 98.64% Financing/Lease $ 7,487 $ 6,094 $ 1,393 81.39% $ 38,387 $ 32,017 $ 6,370 83.41% Total Other E enditures S 258 352 299.251 0 9 111.96% 1 478 946 1553.348 (74,402) 105.03% David Leadbetter Academy Learning Center Revenues $ 25,000 $ 33,965 $ 8,865 135.46% $ 58,500 $ 62,439 $ 3,939 106,73% Reimbursements to David Leadbetter $ (21,250) $ (28,785) $ (7,535) 135,46% $ (49,725) $ (52,410) $ (2,685) 105.40% Other Expenditures $ (1,450) $ (1,377) $ 73 94.97% $ (7,250) $ (6,885) $ 365 94.97% Learning Center Income(Loss) $ 2,300 $ 3,703 $ 1,403 161.00% $ 1,525 S 3.144 $ 1,619 206.16% Operating Income(Loss) $ (13,661) $ (26,664) $ (13,003) 195.18% $ (869,603) $ (712,865) $ 155,738 82.07% Equipment Reserve Replacement 17,164 40,822 $ 23,658 237,84% 85,820 204,110 $ 118,290 237.84% Ne Income oss (30.8251 $ (67,486 6.661) 218.93% 423 916 975 7 44 96.08% Snapshot of Golf Rounds Budgeted mo Actual mo Variance Variance% Budgeted d Actual vtd Variance Variance% Resident 1,632 1,472 (160) 90% 7,495 5,546 1,949 74% Non Resident 2,810 3,022 212 108% 11,937 15,572 (3,635) 130% Other 46 13 (33) 28% 327 141 186 43% Complimentary 113 235 122 208% 762 1,262 500 166% Total 4,601 4,742 141 103% 20,521 22,521 (2,000) 110% D 2000;Financial Statement . � ) \ \ ( j/} j \ } \ } \ ' \ 00 -It CO ! a � ` M ` N ` 00 . § ) / ©] \ { § m ) k � k a7 77 . f ) ! ) / | ){ ) & \ ; » § � \ # . 2 . » - 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6e._ r�mo Pr n Y N B z e � m•OPn � « Y. Y • `o N ., a o N h .... A8 Y o > > y ,e� v •n -N Y, a � '- U > om Z Z om c a Z _-_ •� se ea tlt az tlt � ry om =o_ „ tlt tl'. � ce ce g4 o } cC Z > F > Ob Y 00 v 0 V C o9 YZ Fym P E P P a F F F F �i' - a' ,S z° c� a'�Xz° u' 6 • 1 / - � � Lq § L - ' a 22 � a - , | 7 u ) � \ \ � ! . a « ) k2 \ ! ) . . % City of Palm Desert Desert Willow Cash Reserve Analysis for the month of November 1999 Cash Reserve Analysis One Month Required Reserve $ 500,000.00 Cash on Hand $ 590,468.42 Variance- Favorable Unfavorable $ 90,468.42 9 MOUNTAINVIEW COURSE- NOVEMBER 1999 Description No. Of Revenue Avg. Per Pet to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 386 $ 17,370 $ 45.00 8.98% Resident Fee-Weekday 962 $ 43,290 $ 45.00 22.38% Resident Twilight 50 $ 2,250 $ 45.00 1.16% Total Resident 1,398 62,910 45.00 32.52% Non Resident Fall Fee- Advance 10 $ 1,400 $ 140.00 0.23% Fall Fee-Posted Weekend 452 $ 64,744 $ 143.24 10.51% Fall Fee- Posted Weekday 432 $ 49,740 $ 115.14 10.05% IROC- Designated Party(WKDY) 81 $ 4,680 $ 57.78 1.88% IROC- Designated Party(WKND) 79 $ 5,728 $ 72.51 1.84% IROC- Mbr. Guest- (WKND) 22 $ 2,552 $ 116.00 0.51% IROC- Mbr. Guest- (WKDY) 12 $ 1,152 $ 96.00 0.28% IROC - Mbr. (WKDY) 10 $ 960 $ 96.00 0.23% IROC - Mbr. (WKND) 10 $ 1,160 $ 116.00 0.23% IROC- Mbr.Twilight 4 $ 256 $ 64.00 0.09% IROC- Des. Party Twilight 28 $ 1,120 $ 40.00 0.65% Fall- Wholesale Weekend 148 $ 17,168 $ 116.00 3.44% Fall- Wholesale Weekday 118 $ 11,273 $ 95.53 2.74% Fall-Twilight Fee 208 $ 16,458 $ 79.13 4.84% Fall-Super Twilight 37 $ 1,665 $ 45.00 0.86% Fall - Charity Event 3 $ 90 $ 30.00 0.07% Fall - Passbook (WKDY) 2 $ 150 $ 75.00 0.05% Fall- Leadbetter Fee 9 $ 576 $ 64.00 0.21% Golf Cart Fee 14 $ 420 $ 30.00 0.33% Fee Special Event Variable 1,048 $ 103,560 $ 98.82 24.38% Total Non Resident Rounds 2,727 284,852 $ 104.46 63.43% Other Rounds Junior Walking 5 $ 50 $ 10.00 0.12% Total Other 5 50 10.00 0.12% Complimentary VIP 52 $ - $ - 1.21% PGA Member 17 $ - $ - 0.40% COD/PDIiS 62 $ - $ - 1.44% Donation 16 $ $ - 0.37% Employee 22 $ $ - 0.51% Total Complimentary 169 - 3.93% Total Round (Mountainview) 4,299 $ 347,812 $ 80.91 100% in FIRECLIFF COURSE- NOVEMBER 1999 Description No. Of Revenue Avg. Per Pct to Rounds PerPOS Round Total Resident Rounds Resident Fee- Weekend- Fall 25 $ 1,125 $ 45.00 5.64% Resident Fee-Weekday-Fall 49 $ 2,205 $ 45.00 11.06% Total Resident 74 3,330 45.00 16.70% Non Resident Fall Fee - Posted Replay 2 $ 160 $ 80.00 0.45% Fall- Posted Weekend 79 $ 10,986 $ 139.06 17.83% Fall- Posted Weekday 70 $ 7,806 $ 111.51 15.80% IROC Member Guest Weekday 6 $ 576 $ 96.00 1.35% IROC Member Twilight 2 $ 128 $ 64.00 0.45% IROC Des. PRTY Wkdy 12 $ 720 $ 60.00 2.71% IROC Member Guest Twilight 2 $ 128 $ 64.00 0.456/6 IROC Designated Party WKND 4 $ 290 $ 72.50 0.90% IROC Designated Party-Twilight 7 $ 280 $ 40.00 1.58% Fall Fee-Wholesale Weekend 8 $ 928 $ 116.00 1.81% Fall Fee-Wholesale Weekday 2 $ 192 $ 96.00 0.45% Fall Fee- Golf Car Fee 8 $ 240 $ 30.00 1.81% Fall Fee- Twilight 50 $ 4,000 $ 80.00 11.29% Fall Fee- Passbook WKDY 1 $ 96 $ 96.00 0.23% Fee Special Event Variable 42 $ 4,107 $ 97.77 9.48% Total Non Resident Rounds 295 30,637 $ 103.85 66.59% Other Rounds Junior Walking 8 $ 80.00 $ 10.00 1.81% Total Other 8 80.00 10.00 1.81% Complimentary VIP 14 $ 175.00 $ 12.50 3.16% PGA Member 13 $ - $ - 2.93% COD/PDHS 3 $ $ - 0.68% Donation 11 $ $ - 2.48% Employee 22 $ $ - 4.97% Employee Guest 3 $ 75.00 $ 25.00 0.68% Total Complimentary 66 250.00 3.79 14.90% Total Round (FireCliff) 443 $ 34,297 $ 77.42 100.00% �I i • Desert Willow- Combined Analysis-November 1999 Resident 1,472 $ 66,240 $ 45.00 31.04% Non-Resident 3,022 $ 315,489 $ 104.40 63.73% Other 13 $ 130 $ 10.00 0.27% Complimentary 235 $ 250 $ 1.06 4.96% Desert Willow Totals 4,742 382,109 80.58 100.00% rt r City of Palm Desert Desert Willow Budget Vs Actual For the month of December 1999 Budgeted Actual Budgeted Actual December December $ Percentage Year to Year to $ Percentage Revenue 19" 19" Variance Variance Date Date Variance Variance Course&Ground $ 425,243 $ 313,605 $ (111.638) 73.75% $ 1,580,597 $ 1,694,549 $ 113.952 107,21% Cam $ 33,600 $ 13,217 $ (20,383) 39.34% $ 120,725 $ 61,802 $ (58,923) 51.19% Golf Shop $ 46,300 $ 48,190 $ 1,890 104.08% $ 184,550 $ 258,289 $ 73,739 139.96% Range $ 3,000 $ 1,275 $ (1,725) 42.50% $ 13,000 $ 5,517 $ (7,483) 42.44% Food&Beverage $ 74,800 $ 30.431 $ (44,369) 40.68% $ 247,750 $ 193,691 $ (54,059) 78.18% Interest Income $ 11500 $ 1,400 $ (100) 93.33% $ 9,000 $ 18,886 $ 9,886 209.84% 1 594.443408 1I8 (176.3251 69,83% S 2.155.622 2132.734 77 112 1 Payroll Proshop $ 8,621 $ 12.711 $ (4,090) 147.44% $ 45,634 $ 60,436 $ (14,802) 132.44% Can $ 32,119 $ 14,764 $ 17,355 45.97% $ 131,199 $ 81,444 $ 49,755 62.08% Course&Ground $ 97,605 $ 107,193 $ (9,588) 109.82% $ 610,304 $ 658,679 $ (48,375) 107.93% Golf Operations $ 21,564 $ 20,996 $ 568 97.37% $ 115,697 $ 126,917 $ (11,220) 109.70% General&Administration $ 30,453 $ 24,507 $ 5,946 80.47% $ 166,015 $ 155,196 $ 10,819 93.48% Food&Beverage $ 37,492 $ 26,972 $ 10.520 71.94% $ 156,729 $ 111,748 $ 44,981 7L30% Total Pavroll 227 207.143 $ 20.71190.9 % S 1.225.578 194 420 S 31.158 97.46 Other Expenditures Perimeter Landscaping $ 2,651 $ - $ 2,651 0.00% $ 15,906 $ - $ 15,906 0.00% Proshop $ 3,975 $ 5,514 $ (1,539) 138.72% $ 25,150 $ 31,435 $ (6,285) 124.99%, Proshop-COGS $ 25,465 $ 29,616 $ (4,151) 116.30% $ 101,505 $ 150,638 $ (49,133) 148.40% Cart $ 34,112 $ 31,439 $ 2,673 92.16% $ 178,318 $ 161,609 $ 16,709 90.63% Course&Ground-North Course $ 40,475 $ 36,390 $ 4.085 89.91% $ 358,600 $ 389,704 $ (31,104) 108.67% Course&Ground-South Course $ 40,600 $ 38,423 $ 2,177 94.64% $ 339,600 $ 404,207 $ (64,607) 119.02% Course&Ground-Desert Pallet-N $ 2,000 $ 7,873 $ (5,873) 393.65% $ 15,800 $ 17,415 $ (1,615) 110.22% Course&Ground-Desert Pallet-S $ 1,500 $ 2,908 $ (1,408) 193.87% $ 12,800 $ 14,882 $ (2,082) 116.27% Golf Operations $ 1,100 $ 6,924 $ (5,824) 629.45% $ 24,300 $ 17,644 $ 6,656 72.61% General&Administration $ 49,901 $ 36,974 $ 12,927 74.09% $ 340,919 $ 294,863 $ 46,056 86.49% Range $ 300 $ 29 $ 271 9.67% $ 17,750 $ 13,862 $ 3,888 78,10% Food&Beverage $ 8,940 $ 15,031 $ (6,091) 168.13% $ 39,240 $ 48,174 $ (8,934) 122.77% Food&Beverage COGS $ 24,948 $ 11,995 $ 12,953 48.08% $ 81,638 $ 76,715 $ 4,923 93,97% Management Fee $ 25,000 $ 25,000 $ - 100.00% $ 150,000 $ 148,299 $ 1,701 98.87% Financing/Lease $ 7,391 $ 6,048 $ 1,343 81.83% $ 45,778 $ 38,065 $ 7,713 83.13% Total Other E enditures 1 261,111 S 214,164 14,194 94,71% 1,747,304 1,107,112 2 103.41% David Leadbetter Academy Learning Center Revenues $ 30,000 $ 19,529 $ (10,471) 65.10% $ 88,500 $ 81,968 $ (6,532) 92.62% Reimbursements to David Leadbener $ (25,500) $ (16,600) $ 8,900 65.10% $ (75,225) $ (69,010) $ 6,215 91.74% Other Expenditures $ (100) $ (1,377) $ (1,277) 1377.00% $ (7,350) $ (8,262) $ (912) 112.41% Learning Center Income(Loss) $ 4,400 $ 1,552 $ (2,848) 35.27% $ 5,925 $ 4.696 $ (1,229) 79.26% Operating Income(Loss) $ 92,631 $ (51,637) $ (144,268) -55.74% $ (811,335) $ (764,502) $ 46,833 94.23% Equipment Reserve Replacement 17,164 40,822 $ 23,658 237.84% 102,984 244,932 $ 141,948 237.84% Nel Income ss 75 467 92 459 167 926 -122.52% 914 3l9 1 009 4 4 9 I15 110.40 Snapshot of Golf Rounds Bud eted mo Actual mo Variance Variance% Budgeted d Actual d Variance Variance% Resident 1,904 1,774 (130) 93% 9,399 7,320 (2,079) 78% Non Resident 3,309 2,644 (665) 80% 15,246 18,216 2,970 119% Other 56 41 (15) 73% 383 182 (201) 48% Complimentary 331 347 16 105% 1093 1,609 516 147% Total 5,600 4,806 (794) 86% 26,121 27,327 1,206 105% 1h 2000;Financial Statement ' w w ce w ce ce w ce w w w„rR ce ce w w w a*w w w ce w w w w o w ee ce eR w d, *ewe w m oe�Bo B maom a m�or2�a^g«'""�m - 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'c d �cm 09 m N i[ n 0� U _— O a Iv nr 7 pT Ei Fac Fare _ ys` Fza e e o o r 5 i c SE 7 u o � E � v a v vE 31 � Mi° V' � a'JS� zB c° <JSSzB U 5 s 3 0 6 �Cj5 v ry — v v Om 5a O 6 E cm U E¢!R tR eR eR aF BE '^ n yCy ob 'b'Icco � FOQ > YY cececececece a agr��a R �`c� -_ .. r ce > u° > a E ` u a> �m q z ce cecececece $ Ey N3$�e Be � � _ion n a z � CQ eR tR ex tlt eR ae __�n � eR e2 eR ee ee ee � r z m > M' b'tl3 tlt eR a2 BE — mo vn n ___r� F BP > u a� om Tz F�m a �6C w 1aS n } g E Eg E Xg ° E Eu ° 8' Ep Y 'o . u E ; _ mN o € — m u v a _ m g u u ;3tSz U ,< fSz u <�tz u d<' XfSz° V L , E a � § | | ) 7 [ ) ! a § a ` � /§ ] ! !! d ) � § 7 a ! \ � ® _ ) ! ) 7 ■ 22 ; $ 2 \ } 13M � . ! a a � ) I k / / ` 0 k § � CL r ! . a ) § ir | we t ! a 6 - + & ( ) ■ � � U. \ k � � o ° *\ ® 72 C t � k ` i ■ 2 f k ! ) u ) ( { Ir - § } k 0 \ k G e e e e G G S S S ) § \ \ \ -If / � 2 2 2 2 2 w ® + Ncli / k • Desert Willow • Breakdown of Rounds per point of We system Desert Willow - Combined Analysis-December 1999 Resident 1,774 $ 77,071 $ 43.44 36.91% Non-Resident 2,644 $ 235,889 $ 89.22 55.01% Other 41 $ 410 $ 10.00 0.85% Complimentary 347 $ 1,620 $ 4.67 7.22% Desert Willow Totals 4,806 314,990 65.54 100.00% D Da2000;Die AVG RD a P • Desert Willow • Breakdown of Rounds per point of sale system FIRECLIFF COURSE- DECEMBER 1999 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee- Weekend 134 $ 5,949 $ 44.40 8.17% Resident Fee-Weekday 391 $ 17,342 $ 44.35 23.84% Resident Fee-Twilight 18 $ 810 $ 45.00 1.10% Total Resident 543 24,101 44.38 33.11% Non Resident Winter Fee - Posted Replay 119 $ 17,360 $ 145.88 7.26% Fall- Posted Weekend 240 $ 28,876 $ 120.32 14.63% IROC Member Guest Weekday 4 $ 464 $ 116.00 0.24% IROC Des. PRTY Wkdy 75 $ 4,690 $ 62.53 4.57% IROC Member Guest Twilight 3 $ 208 $ 69.33 0.18% IROC Designated Party WKND 24 $ 1,755 $ 73.13 1.46% IROC Designated Party-Twilight 47 $ 2,115 $ 45.00 2.87% Wholesale Weekend 5 $ 640 $ 128.00 0.30% Wholesale Weekday 30 $ 3,120 $ 104.00 1.83% Super Twilight 9 $ 405 $ 45.00 0.55% Twilight 125 $ 10,444 $ 83.55 7.62% Fee Special Event Variable 215 $ 13,480 $ 62.70 13.11% Total Non Resident Rounds 896 83,557 93.26 54.63% Other Rounds Junior Walking 26 $ 260.00 $ 10.00 1.59% Total Other 26 260.00 10.00 1.59% Complimentary VIP 31 $ - $ - 1.89% PGA Member 59 $ 510.00 $ 8.64 3.60% COD/PDHS $ - $ - 0.00% Donation 32 $ - $ - 1.95% Employee 53 $ - $ - 3.23% Employee Guest $ - $ - 0.00% Total Complimentary 175 510.00 2.91 10.67% Total Round (FireCliff( 1,640 $ 108,428 $ 66.11 100.00% Da2000;Diaz AVG RD to • Desert Willow • Breakdown of Rounds per point of sale system MOUNTAINVIEW COURSE- DECEMBER 1999 Description No. Of Revenue Avg. Per Pct to Rounds Per POS Round Total Resident Rounds Resident Fee-Weekend 319 $ 14,076 $ 44.13 10.08% Resident Fee-Weekday 894 $ 38,084 $ 42.60 28.24% Resident Twilight 18 $ 810 $ 45.00 0.57% Total Resident 1,231 52,970 43.03 38.88% Non Resident Fall Fee-Advance 2 $ 330 $ 165.00 0.06% Posted Fee - Weekend 259 $ 36,591 $ 141.28 8.18% Posted Fee -Weekday 350 $ 40,794 $ 116.55 11.05% IROC- Designated Party (WKDY) 114 $ 6,875 $ 60.31 3.60% IROC- Designated Party (WKND) 81 $ 5,873 $ 72.51 2.56% IROC- Mbr. Guest- (WKND) 4 $ 464 $ 116.00 0.13% IROC- Mbr. Guest- (WKDY) 16 $ 1,536 $ 96.00 0.51% IROC - Mbr. (WKDY) 2 $ 192 $ 96.00 0.06% IROC - Mbr. (WKND) 4 $ 464 $ 116.00 0.13% IROC- Mbr.Twilight 4 $ 288 $ 72.00 0.13% IROC- Des. Party Twilight 48 $ 2,014 $ 41.96 1.52% Wholesale Weekend 17 $ 2,020 $ 118.82 0.54% Wholesale Weekday 84 $ 7,588 $ 90.33 2.65% Twilight Fee 208 _$ 16,788 $ 80.71 6.57% Super Twilight 23 $ 1,035 $ 45.00 0.73% Charity Event 4 $ 120 $ 30.00 0.13% Passbook (WKND) 2 $ 190 $ 95.00 0.06% 1.eadbetter Fee 4 $ 256 $ 64.00 0.13% P.S. Golfer (WKDY) 3 $ 225 $ 75.00 0.09% Fee Special Event Variable 519 $ 28,689 $ 55.28 16.39% Total Non Resident Rounds 1,748 152,332 87.15 55.21% Other Rounds Junior Walking 15 $ 150 $ 10.00 0.47% Total Other 15 150 10.00 0.47% Complimentary VIP 43 $ - $ - 1.36% PGA Member 55 $ 1,110 $ 20.18 1.74% COD/PDHS 3 $ - $ - 0.09% Donation 34 $ - $ - 1.07% Employee 37 $ - $ - 1.17% Total Complimentary 172 1,110 6.45 5.43% Total Round (Mountainview) 3,166 $ 206,562 $ 65.24 100% Dn2000;1)ia AVG RD City of Palm Desert Desert Willow Cash Reserve Analysis for the month of December 1999 Cash Reserve Analysis One Month Required Reserve $ 500,000.00 Cash on Hand $ 775,328.78 Variance- Favorable Unfavorable $ 275,328.78 IZ PalmDesert Recreation Facilities Corporation Income Statement Nov-99 Nov-99 M % Budget Actual Variance Variance Food & Beverage Revenues $53,400 $33,699 ($19,701) 63.11% Total Revenues $53,400 $33,699 ($19,701) 63.11% Salaries $35,363 $21,509 $13,854 60.82% Cost of Goods Sold-F&B $17,678 $13,685 $3,993 77.41% Food & Beverage Expense $7,390 $9,070 ($1,680) 122.73% Total Expenses $60,431 $44,264 $16,167 73.25% Net Income (Loss) ($7,031) ($10,565) Note: The above revenues and expenditures are also included in the Desert Willow analysis. s Dw2000;PDRFC Budget PalmDesert Recreation Facilities Corporation Income Statement Dec-99 Dec-99 # % Budget Actual Variance Variance Food & Beverage Revenues $74,800 $30,431 ($44,369) 40.68% Total Revenues $74,800 $30,431 ($44,369) 40.68% Salaries $37,492 $26,972 $10,520 71.94% Cost of Goods Sold-F&B $24,948 $11,995 $12,953 48.08% Food & Beverage Expense $8,940 $14,891 ($5,951) 166.57% Total Expenses $71,380 $53,858 $17,522 75.45% Net Income (Loss) $3,420 ($23,427) Note: The above revenues and expenditures are also included in the Desert Willow analysis. Dw2000;PDRFC Budget i Aft IMMLL THE MCCALLUM THEATRE THE BOB HOPE CULTURAL CENTER 73-000 Fred Waring Drive•Palm Desert,California 92260 C3 Executive Offitc 760.346,6505 r' January 3, 2000 Box Office:760.340.2787•Fax:760.341,9508 HAND-DELIVERED info@mcra(!um-theatre.org - Mr. Paul Gibson ' Director of Finance/City Treasurer City of Palm Desert 73-5 10 Fred Waring Drive Palm Desert, CA 92260 Re: City of Palm Desert Charitable Contribution- $125,000 Received July 1999 $50,000 to McCallum Theatre Institute &AEP Program $75,000 to unrestricted general funding Dear Mr. Gibson: This letter serves as the McCallum Theatre's finance reporting for the first six months of the above-referenced charitable contribution from the City of Palm Desert. The report includes Schedule B to the contract, Report of Services Rendered and To Be Rendered, the narrative supporting the accounting of funds expended to date and Exhibit"A", the actual accounting. The second annual cycle of the Aesthetic Education Program (AEP) of the McCallum Theatre Institute officially began on Monday, April 12, 1999 with an Introductory Workshop for New Teachers joining the AEP for the first time. This two hour workshop was led by Teaching Artist/Field Repre- sentative Jean Taylor from the Lincoln Center Institute (LCI) in New York. Ms. Taylor trained'during . the pilot year as well. Early evening a reception for 60+ MTI supporters from the MTI Steering, Advisory and Partnership Committees, Coachella Valley city officials, representatives from Valley arts organizations, MTI grantors and the media took place in the Gerald R. Ford Founders Room. The con- gregation was welcomed by Education Director Kajsa Thuresson-Frary who offered an MTI progress report from the past year and highlights for the coming year - in particular Summer Session 1999 where Coachella Valley classroom teachers will come to the Institute to be trained. The evening concluded with a discussion of the Aesthetic Education philosophy and the work of the Lincoln Center Institute by LCI Deputy Director Cathryn Williams. The next four days, April 13-16, current Teaching Artist faculty and new Teaching Artists— 18 total - participated in dawn to dusk training workshops led by Ms. Williams, Ms. Taylor and Ms. Thuresson-Frary in the study of the aesthetic education philosophy which is concerned with discovery, action, problem solving and questioning. Tuesday evening, April 131h, a workshop for participating classroom teachers (PT's) and school principals was led by the same team of trainers and centered on the focus work performance by professional storyteller David Novak. Page 2. Summer Session 1999 took place the week of June 21-25 with 43 classroom teachers (an increase of 18 teachers from the pilot AEP) from the three Coachella Valley school districts and Morongo Unified School District participating. A brochure profiling Summer Session and a schedule of the week's activities is enclosed for your information and review. The focus works of art for study during Summer Session were the following: MUSIC: San Jose Taiko; THEATRE: Storyteller Brenda Wong Aoki's "Uncle Gunjiro's Girlfriend" and "Tales from the Pacific Rim" (age appropriate works); DANCE: Repertory Dance Theatre — selected works from 1948 through 1997; VISUAL ARTS: Twelve Figurative Artworks Spanning Centuries, Cultures and Media in the permanent collection of the Palm Springs Desert Museum (for returning teachers only, as this was pilot year for. visual arts). Summer Session week also included two lectures, one appropriate for new teachers and one for the experienced returning teachers by the AEP's Teacher of Record, Dr. Sue Teele, Director of Education Extension at the University of California and Director of The Renaissance Project — a research study on the theory of multiple intelligence and its impact in the educational setting. Both new teachers and returning teachers are eligible to earn up to 4 graduate credits from UCRiverside by fulfilling the credit course requirements as taught by Dr. Teele. Summer Session having concluded, the next phase of the aesthetic education process began in October when Teaching Artists began planning sessions with teachers at the schools. The Teaching Artists and teachers work together and plan 6 classroom sessions for the chosen focus work of art. Three classroom sessions are taught by the Teaching Artist and three taught by the classroom teacher. Upon the completion of the classroom work, the students will come to the McCallum to view the art work they have been studying or to the Palm Springs Desert Museum if the visual art offering was chosen. The first focus work, Repertory Dance Theatre was performed on Tuesday, November 2, 1999 at 10:30 A.M. Twenty teachers selected this focus work bringing their 672 students to see the performance. Before the season ends in May 2000, 1,700+ students will have participated in the program, an increase of almost 700 over the pilot year. Planning Sessions for the next focus work, "San Jose Taiko", began in December and the Teaching Artist Residencies will begin in mid January with the performance scheduled for February 23, 1999. Thirty-one teachers have selected this focus work and will be bringing close to 1,000 students to experience "San Jose Taiko" live at the McCallum. The third focus work, storyteller Brenda Wong Aoki's "Uncle Gunjiro's Girlfriend" and "Tales from the Pacific Rim" will be per- formed May 24 and 25, 2000. The Planning Sessions and Teaching Artist Residencies will begin in mid-April. The visual arts focus work is available for planning, residencies and viewing from Novem- ber through May. This past summer the Palm Springs Friends of the Los Angeles Philharmonic donated to the McCallum Theatre a brand new "state of the art" orchestra shell at a cost to the Philharmonic of $173,210.00. Installation of the shell, requiring costly special "rigging", became the financial responsibility of the Theatre. The cost: $38,000. A donor came forward contributing a portion of the Page 3. cost; the City's funding paid for the balance, $13,000. The shell is used for all classical performances, whether the performance be a full orchestra, a chamber ensemble, or single performer.The McCallum historically has had and continues to have strong support from local classical music patrons. On January 17, 2000 a formal dedication of the shell will be held just prior to PSFLAP sponsored performance of The Royal Philharmonic Orchestra at the Theatre. Before the McCallum opened in January 1988, a brand new state-of-the-art Mitel telephone system was installed. The system, which had served the Theatre well, was "technically" out-of-date by 1988 when computerized telephones were introduced. For some years now, parts for that system have been obsolete; only available were costly refurbished parts...and we had purchased our share. The system, year by year, became less and less reliable —all share output ports had failed. The next failure would result in considerable expense to repair, as circuit cards would need to be replaced — one each year at a cost of approximately $1,000 per year. The decision was made late spring 1999 to "bite the bullet" and purchase a MITEL SX-200 ML DIGITAL ELECTRONIC BRANCH EXCHANGE TELEPHONE SYSTEM at a cost of$28,000. The new system, along with other cost savings, towers our local phone bill by $400.00 per month by utilizing T-I service with no metered charges — we had been paying approximately &0I per minute (daytime) for local calls. This system offers us voice mail and auto-attendant features which have increased staff efficiency and productivity—and improved our telephone "image" with our patrons and vendors who had complained regularly about our phones and the lack of voice mail service. Addition- al features include built-in head set connections on box office sales lines, busy lamp fields which will allow staff to monitor phone usage, and the ability to close box office sales lines without taking the phone off the hook. The cost was funded in part by the R.C. Baker Foundation ($5,000.00) and in significant part from the City of Palm Desert funding ($23,000). Attached to this narrative is an accounting to date of the City of Palm Desert charitable contri- bution totaling $107,260.00. Some targeted expenses for the balance of the contribution received ($17,740.00) include the following to be incurred over the next five months: 1. Spring 2000 week long visit to MTI by Cathryn Williams and Jean Taylor from Lincoln Center Institute. As was done last year, this trip will include the reception for MTI supporters, Teaching Artist training (advanced Teaching Artist training for our current TA faculty and Teaching Artist Training for new teaching artists being added to the AEP faculty) by Ms. Williams, Ms. Taylor and Education Director Kajsa Thuresson-Frary, and an introductory aesthetic education workshop for teachers and administrators from the four involved school districts with our mentors from LCI. The 1999/2000 AEP includes all four disciplines—with the visual arts to be expanded to serve all �I `+ Page 4. participating teachers (last year visual arts was only available to returning teachers). For this reason, as well as for the reason that it is anticipated the AEP teacher participation will grow to include another 25-27 teachers for 2000/2001 (total 68-70)1 additional Teaching Artists (5-6) will have to be hired to join our current faculty of fourteen (14) to meet the needs of increased enrollment and the expansion of the visual arts component. Last year's costs for the week long Teaching Artist training was $9,200+. It is anticipated costs this spring will be approximately $12,500.00. 2. Continuing with the AEP will be Dr. Sue Teele, Director of Extension at the University of California, Riverside and Director of The Renaissance Project as Teacher of Record for the Aesthetic Education Program. Dr. Teele will again lecture during Summer Session and is the professor for those classroom teachers will will take the AEP for graduate degree credit. Dr. Teele's fee last year was $1,500.00. We are anticipating a similar cost for 2000/2001. 3. Over the last four years the Theatre has collaborated (the first three years with Palm Valley School and last year MTI with The English Speaking Union) to host a Shakespeare Competition for high school students. MTI and The English Speaking Union (ESU) co-producing the event in 1999 took the local competition to a higher level and broadened its outreach significantly. Last year 45 student competitors (vs. 12-14 the first three years) from three counties, Riverside, San Bernardino and Kern participated in the competition with the winner going to Lincoln Center in New York for the national finals in April 1999. On February 24, 2000 students who have won at their local competitions will converge on the McCallum with the winner, again, being sent to New York for the national finals. Coordination of this event is very time consuming and involves many elements. MTI and The English Speaking Union determined that a paid coordinator was needed to plan and produce the event. Neither organization had the staff resources to coordinate the event itself. The cost to MTI for the expertise and time of the coordinator, Mr. David Koslow of The Shakespeare Reading Club - from September 1999 through February 2000 - is $3,000.00, with the ESU picking up the balance of the coordinator fees as well as other significant costs of the event, i.e. all paid advertising. Last year's costs to MTI were $1,325.00 for backstage labor. February 2000 costs will include the backstage labor estimated at $1,500.00 plus the $3,000.00 ($1,200 having been paid to date with City funds) for the event coordinator. As was done last year, promotional efforts will begin in earnest January 2000 to attract local residents to watch the FREE evening performance of the Competition's Finalists. MTI's Aesthetic Education Program is designed as a continuing education program for the classroom teacher. Teachers who have successfully completed the 1998/1999 and 1999/2000 AEP will return to Summer Session 2000/2201 and will participated in specialized/advanced workshops for AEP trained classroom teachers. New teachers joining the program will participate in a week and a half of Summer Session training in fundamental aesthetic education.The 2000/2001 Summer Session is being increased from five days to eight days of workshops to meet the needs dictated by program expansion. Page 5. Our second report is due to the City not later than April 30, 2000 and at that same time we will submit our proposal for the funding year 1999/2000. Again, we thank the City for its continuing generosity and support — it is sincerely appreciated. We continue to endeavor to use the financial contribution responsibly and productively. Please know, as always, that our CEO, Mr. Giatas, Ms. Thuresson-Frary, Education Director, and I welcome your comments, observations and questions. Very truly yours, LOIS GIANNOPULOS Development Associate— Grants and Administration Cc:Mr.Ray Diaz,City Manager Mr. Ted Giatas, Executive Director/CEO, McCallum Theatre Ms. Kajsa Thuresson-Frary, Education Director, McCallum Theatre Institute enclosures EXHIBIT "A" Accounting—July 1999 through December 1999 City of Palm Desert$125,000.00 Charitable Contribution 1. McCallum Theatre Institute (MTI) Education Director salary for period July 1999 through Decem- ber 1999. Ms. Thuresson-Frary's salary: $ 18,750.00 2. McCallum Theatre Institute (MTI) Grant Administrator salary for period July 1999 through Decem- ber 1999. Ms. Giannopulos' salary: $ 8,340.00 3. McCallum Theatre Institute (MTI)part-time administrative assistant wages for period October through December 1999. Mrs. Yeates' wages: $ 800.00 4. Aesthetic Education Program (AEP) Summer Session focus works: artist fees: Summer Session Focus Work artist fees: San Jose Taiko- $6,000 Repertory Dance Theatre- $7,750 Brenda Wong Aoki- $7,500 $ 21,250.00 5. Aesthetic Education Program (AEP) Summer Session focus works: backstage labor: Summer Session Focus Work backstage labor fees: San Jose Taiko- $1,756 Repertory Dance Theatre- $3,043 Brenda Wong Aoki- $3,713.00 $ 8,512.00 6. Aesthetic Education Program(AEP) Summer Session: Teaching Artist mileage: Summer Session Teaching Artist mileage: Mark Almy- $478 Steven Schmidt- $444 Scott Smith - $50 Xavier Cortez-$429 Carey Smith - $447 Jeanette Knight- $393 Patrick O'Neill- $86 Michele Gaines- $109 Robert Todd-$208 Steve Graham- $105 Terri Hayes- $57 Paul Cracchiolo- $44 Shea New- $112 $ 2,962.00 i Page 2. 7. Aesthetic Education Program (AEP) Teaching Artist Planning Session and Residency wages for Repertory Dance Theatre focus work: Teaching Artist wages for Repertory Dance Theatre focus work: Shea New- $1,590 Michele Gaines- $3,000 Jeanette Knight-$2,625 $7,215.00 8 Aesthetic Education Program(AEP) Teaching Artist mileage for Repertory Dance Theatre Planning Sessions and Residencies: Teaching Artist mileage costs for Repertory Dance Theatre: Shea New- $38 Michele Gaines- $325 Jeanette Knight- $639 $1,002.00 9. Aesthetic Education Program(AEP)Repertory Dance Theatre November 2, 1999 student perform- ance: backstage labor: Backstage labor costs: $2,220.00 10. Aesthetic Education Program (AEP)Repertory Dance Theatre performance: miscellaneous costs: Miscellaneous costs: Meals- $45 Allied Vaughn - $109 Supplies- $34 KajsaTF(mileage) - $20 $209.00 11. Orchestra Shell Rigging equipment& installation: $13,000.00 12. Mitel SX-200 NIL Digital Exectronic Branch Exchange Telephone System: $23,000.00 TOTAL: $107,260.00 SCHEDULE B REPORT OF SERVICES RENDERED AND TO BE RENDERED (DUE JANUARY, 2000) CONTRACTORS, by its duly authorized official, hereby submits to the CITY OF PALM DESERT its report on services rendered and to be rendered by Contractor pursuant to that certain "Agreement by Non-Profit Organization to provide services to the CITY OF PALM DESERT' effective the first day of July, 1999. CONTRACTOR certifies that it has maintained its office during the hours contracted for, and has continuously provided all services contracted for, and assures the City it will conduct all programs contracted for. Included in the services provided, Contractor has, during the period covered by this Report, performed the following approximate services during the period July 1, 1999 to December 31, 1999. The undersigned,the duly authorized official of the Contractor, certifies that the information provided herein is true and correct. Dated: January 3, 2000 By: Ted that s Execut a Director/CEO I N T E R 1 , MEMO r�� O F F I C E To: Investment & Finance Committee From: Paul S. Gibson, Finance Director V'° Subject: Management Letter on the Internal Control Review of Kemper Sports Management, Inc. in connection with the Desert Willow Golf Resort audit for the year ending June 30, 1999. Date: January 20, 2000 In connection with the financial audit for the year ending June 30, 1999, our auditors are required to review their prior year management letter. All prior year comments have been addressed by Kemper Sports Management, Inc. except two (Cash Receipts and Property, Plant & Equipment). Our auditors have also issued an internal control management letter for Desert Willow for the fiscal year ending June 30, 1999. The following are the City's solutions to the management letter issued by the auditors regarding the internal controls of Kemper Sports Management, Inc. Cash Receipts We have addressed this problem on several occasions with the staff at Desert Willow and they have assured us that procedures have been implemented to correct the problem. The City's staff will be conducting reviews on this area and several others on a quarterly basis and will be reporting findings to the City Manager. Properly, Plant& E ui ment Prior to the operations of Desert Willow opening, we instructed Kemper Sports Management, Inc. staff to tag and keep track of the City's assets as they were purchased. The City will conduct a quarterly review to ensure that Kemper's staff has tagged all equipment that has been purchased. H:\JESPIN-I\ACCTG99\AUDIT99\MAGADW99.WPD DESERT WILLOW GOLF RESORT MANAGEMENT LETTER YEAR ENDED JUNE 30, 1999 6*f Evaas & C'onz#any,_f2 CERTIFIED PUBLIC ACCOUNTANTS&CONSULTANTS Oita¢ 0. c-14¢ml/o CERTIFIED PUBLIC ACCOUNTANT 2121 ALTON PARKWAY,SUITE 100 a joint venture 74-133 EL PASEO, SUITE 8 IRVINE,CALIFORNIA 92606-4906 September 29, 1999 PALM DESERT,CALIFORNIA 92260 (949)757.7700 (760)773.4078 The Honorable Major and Members of City Council City of Palm Desert Palm Desert, California In planning an performing our audit of the financial statements of Desert Willow Golf Resort for the year ended June 30, 1999, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole and we do not express such an opinion. The management of Desert Willow Golf Resort(Kemper Sports Management, Inc.) is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly. During our audit, we noted other matters involving the internal control structure and its operation that we wish to call to your attention. These matters are set forth below with our recommendations for improvement. Property, Plant & Eft uioment Auditor Comment and Recommendation: During our testing of property, plant & equipment we noted that the property subsidiary ledger did not reconcile to the general ledger control accounts and did not include the current year's depreciation charges for each depreciable asset. We recommend that detailed property record's be reconciled to general ledger control accounts and be modified to include monthly and year to date depreciation charges. 1 Property. Plant & Equipment (continued) Management Response: We agree with the auditor's recommendation and are currently working on the reconciliation. As additions are made, we will update the property records and complete a full reconciliation on a quarterly basis. Cash Receipts Auditor Comment and Recommendation: Our testing of cash receipts disclosed instances were small cash shortages were still occurring. In addition, we noted several instances where payments from credit cards were not posted correctly in the Golf Course's cash register. We recommend management to continue to monitor cash shortages and the posting of credit card payments. Management Response: We agree with the auditor's recommendation and will continue to monitor all cash and credit card shortages. In addition, the on site Controller will continue to review all cash and credit card shortages with the senior management team at their weekly management meetings. These matters were considered in determining the nature, timing and extent of the audit tests to be applied in our audit of Desert Willow Golf Resort's financial statements and this letter does not affect our report on these financial statements dated September 29, 1999. This report is intended for the information and use of the City Council and Management. However, this report, upon acceptance by the City, is a matter of public record and its distributions is not limited. // �✓ D ue.1.�,(,��"[aNW oM.d. U �Llama 2 I N T E R i MEMO W i O F F I C E To: Investment& Finance Committee From: Paul S. Gibson, Finance Director Subject: Management Letter on the Internal Control Review of RPM Company In connection with the Palm Desert Housing Authority audit for the year ending June 30, 1999. Date: January 20, 2000 In connection with the financial audit for the year ending June 30, 1999, our auditors are required to review their prior year management letter. All prior year comments have been addressed by RPM Company except one (Cash Disbursement) Our auditors have also issued an internal control management letter for the Palm Desert Housing Authority for the fiscal year ending June 30, 1999. The following are the City's solutions to the management letter issued by the auditors regarding the internal controls of RPM Company. Cash Disbursement Our staff will conduct reviews to ensure that RPM Company has implemented the auditor's recommendation. Tenant Files We will be working with RPM staff to ensure that tenant files are completed and have all the information they need. Rent Change Procedure Our staff will be testing to see if RPM is increasing tenant rent by the method set up by the Housing Authority. H:V ESPIN-1\ACCTG99VAUDIT99\MAGH0M99.W PD PALM DESERT HOUSING AUTHORITY MANAGEMENT LETTER YEAR ENDED JUNE 30, 1999 L7r'hL, Evans & Com#a)2? CERTIFIED PUBLIC ACCOUNTANTS d CONSULTANTS Divas 6 og¢ml/o CERTIFIED PUBLIC ACCOUNTANT _ 2121 ALTON PARKWAY,SUITE 100 a Joint ventur®ctober 22, 1999 74.133 EL PASEO,SUITE 8 IRVINE,CALIFORNIA 92606-4906 PALM DESERT,CALIFORNIA 92260 (949)767-7700 (760)773-4078 Agency Members Palm Desert Redevelopment Agency Palm Desert, California In planning an performing our audit of the financial statements of Palm Desert Housing Authority for the period ended June 30, 1999, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole and we do not express such an opinion. The management of Palm Desert Housing Authority (RPM Company) is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly. During our audit, we noted other matters involving the internal control structure and its operation that we wish to call to your attention. These matters are set forth below with our recommendations for improvement. Cash Disbursements Auditor Comment and Recommendation: During our testing of cash disbursements we noted instances where approval of invoices was not documented. We also noted that paid invoices are not canceled upon payment. To prevent possible duplication of payments or payment of unauthorized expense, we recommend that all vendor invoices be stamped "paid" at the time of payment and a policy to be implemented which will prevent the processing of invoices that have not been properly approved. 1 Management Response: We agree with the auditor's recommendation and have already implemented stamping the invoices "paid" at time of payment. We will also assure that all invoices have the proper authorization before they are processed for payment. Missing_Documents - Tenant Files Auditor Comment and Recommendation: During our review of tenant files, we noted that a copy of the tenant's driver license or picture ID was missing in 15 of the 99 files tested, and a copy of the social security card was missing in 14 of the 99 files tested. Management Response: When RPM Company was hired to manage the apartment complex, we inherited the Riverside County Housing Authority tenant files. We have been diligent in updating the tenant file in order to get them complete. We agree with the auditor's finding and will be reviewing the files to insure that all documentation that is required is in the files. Rent Change Procedure Auditor Comment and Recommendation: During our review of tenant files, we noted that in 14 of the 93 files tested, the procedure for a change in rent was not being followed. In all of these cases, the rent was being increased over fewer periods then what the procedure called for. Management Response: The files in question were not according to the increase criteria approved by the Housing Authority, however, it did agree with our initial recommendation to the Housing Authority. This misunderstanding has been corrected and now only rent increases are based on the Housing Authority criteria. These matters were considered in determining the nature, timing and extent of the audit tests to be applied in our audit of the Palm Desert Housing Authority's Financial Statements. This report is intended for the information and use of the Palm Desert Housing Authority and management. However, this report, upon acceptance by the Agency, is a matter of public record and its distribution is not limited. I N T E R MEMO O F F I C E To: Investment &Finance Committee From: Paul S. Gibson, Finance Director Subject: Management Letter on the Internal Control Review of RPM Company In connection with the Palm Desert Housing Authority audit for the year ending June 30, 1999. Date: January 20, 2000 In connection with the financial audit for the year ending June 30, 1999, our auditors are required to review their prior year management letter. All prior year comments have been addressed by RPM Company except one(Cash Disbursement) Our auditors have also issued an internal control management letter for the Palm Desert Housing Authority for the fiscal year ending June 30, 1999. The following are the City's solutions to the management letter issued by the auditors regarding the internal controls of RPM Company. Cash Disbursement Our staff will conduct reviews to ensure that RPM Company has implemented the auditor's recommendation. Tenant Files We will be working with RPM staff to ensure that tenant files are completed and have all the information they need. Rent Change Procedure Our staff will be testing to see if RPM is increasing tenant rent by the method set up by the Housing Authority. RVESPIN-1\ACCTG99\AUDIT99\MAGH0M99.W PD PALM DESERT HOUSING AUTHORITY MANAGEMENT LETTER YEAR ENDED JUNE 30, 1999 I 2)1-k, Evani & Com#any,tff-P CERTIFIED PUBLIC ACCOUNTANTS&CONSULTANTS Coiea2 -9. c4¢mfio CERTIFIED PUBLIC ACCOUNTANT 2121 ALTON PARKWAY,SUITE 100 a Joint ventur6ctober 22, 1999 74-133 EL PASEO,SUITE 8 IRVINE,CAUFORNIA 92606.4906 PALM DESERT,CAUFORNIA 92260 (949)757-7700 (760)773-4078 Agency Members Palm Desert Redevelopment Agency Palm Desert, California In planning an performing our audit of the financial statements of Palm Desert Housing Authority for the period ended June 30, 1999, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole and we do not express such an opinion. The management of Palm Desert Housing Authority (RPM Company) is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly. During our audit, we noted other matters involving the internal control structure and its operation that we wish to call to your attention. These matters are set forth below with our recommendations for improvement. Cash Disbursements Auditor Comment and Recommendation: During our testing of cash disbursements we noted instances where approval of invoices was not documented. We also noted that paid invoices are not canceled upon payment. To prevent possible duplication of payments or payment of unauthorized expense, we recommend that all vendor invoices be stamped "paid" at the time of payment and a policy to be implemented which will prevent the processing of invoices that have not been properly approved. 1 Management Response: We agree with the auditor's recommendation and have already implemented stamping the invoices "paid" at time of payment. We will also assure that all invoices have the proper authorization before they are processed for payment. Missing Documents - Tenant Files Auditor Comment and Recommendation: During our review of tenant files, we noted that a copy of the tenant's driver license or picture ID was missing in 15 of the 99 files tested, and a copy of the social security card was missing in 14 of the 99 files tested. Management Response: When RPM Company was hired to manage the apartment complex, we inherited the Riverside County Housing Authority tenant files. We have been diligent in updating the tenant file in order to get them complete. We agree with the auditor's finding and will be reviewing the files to insure that all documentation that is required is in the files. Rent ChanPe Procedure Auditor Comment and Recommendation: During our review of tenant files, we noted that in 14 of the 93 files tested, the procedure for a change in rent was not being followed. In all of these cases, the rent was being increased over fewer periods then what the procedure called for. Management Response: The files in question were not according to the increase criteria approved by the Housing Authority, however, it did agree with our initial recommendation to the Housing Authority. This misunderstanding has been corrected and now only rent increases are based on the Housing Authority criteria. These matters were considered in determining the nature, timing and extent of the audit tests to be applied in our audit of the Palm Desert Housing Authority's Financial Statements. This report is intended for the information and use of the Palm Desert Housing Authority and management. However, this report, upon acceptance by the Agency, is a matter of public record and its distribution is not limited. 2 I N T E R a ; MEMO O F F I C E To: Investment &Finance Committee From: Paul S. Gibson, Finance Director Subject: Management Letter on the Internal Control Review of Kemper Sports Management, Inc. in connection with the Desert Willow Golf Resort audit for the year ending June 30, 1999. Date: January 20, 2000 In connection with the financial audit for the year ending June 30, 1999, our auditors are required to review their prior year management letter. All prior year comments have been addressed by Kemper Sports Management, Inc. except two (Cash Receipts and Property, Plant & Equipment). Our auditors have also issued an internal control management letter for Desert Willow for the fiscal year ending June 30, 1999. The following are the City's solutions to the management letter issued by the auditors regarding the internal controls of Kemper Sports Management, Inc. Cash Receipts We have addressed this problem on several occasions with the staff at Desert Willow and they have assured us that procedures have been implemented to correct the problem. The City's staff will be conducting reviews on this area and several others on a quarterly basis and will be reporting findings to the City Manager. Property, Plant & Equipment Prior to the operations of Desert Willow opening, we instructed Kemper Sports Management, Inc. staff to tag and keep track of the City's assets as they were purchased. The City will conduct a quarterly review to ensure that Kemper's staff has tagged all equipment that has been purchased. H:VESPIN-I WCCTG99�AUDIT99UAAGADW99.W PD DESERT WILLOW GOLF RESORT MANAGEMENT LETTER YEAR ENDED JUNE 30, 1999 1�IehZ, 2' . & Coin#any, fYr-JD CERTIFIED PUBLIC ACCOUNTANTS&CONSULTANTS &s.eaz -. 4�:-4zmil'o CERTIFIED PUBLIC ACCOUNTANT 2121 ALTON PARKWAY,SUITE 100 a Joint venture 74.133 EL PASEO,SUITE 8 IRVINE,CALIFORNIA 92606-4906 September 29, 1999 PALM DESERT,CALIFORNIA 92260 (949)757-7700 (760)773-4078 The Honorable Major and Members of City Council City of Palm Desert Palm Desert, California In planning an performing our audit of the financial statements of Desert Willow Golf Resort for the year ended June 30, 1999, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole and we do not express such an opinion. The management of Desert Willow Golf Resort(Kemper Sports Management, Inc.) is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgements by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly. During our audit, we noted other matters involving the internal control structure and its operation that we wish to call to your attention. These matters are set forth below with our recommendations for improvement. Property- Plant & Equipment Auditor Comment and Recommendation: During our testing of property, plant & equipment we noted that the property subsidiary ledger did not reconcile to the general ledger control accounts and did not include the current year's depreciation charges for each depreciable asset. We recommend that detailed property record's be reconciled to general ledger control accounts and be modified to include monthly and year to date depreciation charges. 1 Property. Plant & Equipment (continued) Management Response: We agree with the auditor's recommendation and are currently working on the reconciliation. As additions are made, we will update the property records and complete a full reconciliation on a quarterly basis. Cash Receipts Auditor Comment and Recommendation: Our testing of cash receipts disclosed instances were small cash shortages were still occurring. In addition, we noted several instances where payments from credit cards were not posted correctly in the Golf Course's cash register. We recommend management to continue to monitor cash shortages and the posting of credit card payments. Management Response: We agree with the auditor's recommendation and will continue to monitor all cash and credit card shortages. In addition, the on site Controller will continue to review all cash and credit card shortages with the senior management team at their weekly management meetings. These matters were considered in determining the nature, timing and extent of the audit tests to be applied in our audit of Desert Willow Golf Resort's financial statements and this letter does not affect our report on these financial statements dated September 29, 1999. This report is intended for the information and use of the City Council and Management. However, this report, upon acceptance by the City, is a matter of public record and its distributions is not limited. n 2 ��z/ THE MCCALLUM THEATRE THE BOB HOPE CULTURAL CENTER J c; 73-000 Fred Waring Drive•Palm Desert,California 92260 CD - -_ Executive Office.760.346.6505 January 3, 2000 Box Office:760.340.2787• Fax:76o.341.9508 HAND-DELIV_ERED c ittfv@mccallum-theatre.org - x Mr. Paul Gibson Director of Finance/City Treasurer City of Palm Desert W ', 73-5 10 Fred Waring Drive _ Palm Desert, CA 92260 Re: City of Palm Desert Charitable Contribution - $125,000 Received July 1999 $50,000 to McCallum Theatre Institute & AEP Program $75,000 to unrestricted general funding Dear Mr. Gibson: This letter serves as the McCallum Theatre's finance reporting for the first six months of the above-referenced charitable contribution from the City of Palm Desert. The report includes Schedule B to the contract, Report of Services Rendered and To Be Rendered, the narrative supporting the accounting of funds expended to date and Exhibit"A", the actual accounting. The second annual cycle of the Aesthetic Education Program (AEP) of the McCallum Theatre Institute officially began on Monday, April 12, 1999 with an Introductory Workshop for New Teachers joining the AEP for the first time. This two hour workshop was led by Teaching Artist/Field Repre- sentative Jean Taylor from the Lincoln Center Institute (LCI) in New York. Ms. Taylor trained during the pilot year as well. Early evening a reception for 60+ MTI supporters from the MTI Steering, Advisory and Partnership Committees, Coachella Valley city officials, representatives from Valley arts organizations, MTI grantors and the media took place in the Gerald R. Ford Founders Room. The con- gregation was welcomed by Education Director Kajsa Thuresson-Frary who offered an MTI progress report from the past year and highlights for the coming year - in particular Summer Session 1999 where Coachella Valley classroom teachers will come to the Institute to be trained. The evening concluded with a discussion of the Aesthetic Education philosophy and the work of the Lincoln Center Institute by LCI Deputy Director Cathryn Williams. The next four days, April 13-16,current Teaching Artist faculty and new Teaching Artists— 18 total - participated in dawn to dusk training workshops led by Ms. Williams, Ms. Taylor and Ms. Thuresson-Frary in the study of the aesthetic education philosophy which is concerned with discovery, action, problem solving and questioning. Tuesday evening, April 13a`, a workshop for participating classroom teachers (PT's) and school principals was led by the same team of trainers and centered on the focus work performance by professional storyteller David Novak. Page 2. Summer Session 1999 took place the week of June 21-25 with 43 classroom teachers (an increase of 18 teachers from the pilot AEP) from the three Coachella Valley school districts and Morongo Unified School District participating. A brochure profiling Summer Session and a schedule of the week's activities is enclosed for your information and review. The focus works of art for study during Summer Session were the following: MUSIC: San Jose Taiko; THEATRE: Storyteller Brenda Wong Aoki's "Uncle Gunjiro's Girlfriend" and "Tales from the Pacific Rim" (age appropriate works); DANCE: Repertory Dance Theatre — selected works from 1948 through 1997; VISUAL ARTS: Twelve Figurative Artworks Spanning Centuries, Cultures and Media in the permanent collection of the Palm Springs Desert Museum (for returning teachers only, as this was pilot year for visual arts). Summer Session week also included two lectures, one appropriate for new teachers and one for the experienced returning teachers by the AEP's Teacher of Record, Dr. Sue Teele, Director of Education Extension at the University of California and Director of The Renaissance Project — a research study on the theory of multiple intelligence and its impact in the educational setting. Both new teachers and returning teachers are eligible to earn up to 4 graduate credits from UCRiverside by fulfilling the credit course requirements as taught by Dr. Teele. Summer Session having concluded, the next phase of the aesthetic education process began in October when Teaching Artists began planning sessions with teachers at the schools. The Teaching Artists and teachers work together and plan 6 classroom sessions for the chosen focus work of art. Three classroom sessions are taught by the Teaching Artist and three taught by the classroom teacher. Upon the completion of the classroom work, the students will come to the McCallum to view the art work they have been studying or to the Palm Springs Desert Museum if the visual art offering was chosen. The first focus work, Repertory Dance Theatre was performed on Tuesday, November 2, 1999 at 10:30 A.M. Twenty teachers selected this focus work bringing their 672 students to see the performance. Before the season ends in May 2000, 1,700+ students will have participated in the program, an increase of almost 700 over the pilot year. Planning Sessions for the next focus work, "San Jose Taiko", began in December and the Teaching Artist Residencies will begin in mid January with the performance scheduled for February 23, 1999. Thirty-one teachers have selected this focus work and will be bringing close to 1,000 students to experience "San Jose Taiko" live at the McCallum. The third focus work, storyteller Brenda Wong Aoki's "Uncle Gunjiro's Girlfriend" and "Tales from the Pacific Rim" will be per- formed May 24 and 25, 2000. The Planning Sessions and Teaching Artist Residencies will begin in mid-April. The visual arts focus work is available for planning, residencies and viewing from Novem- ber through May. This past summer the Palm Springs Friends of the Los Angeles Philharmonic donated to the McCallum Theatre a brand new "state of the art" orchestra shell at a cost to the Philharmonic of $173,210.00. Installation of the shell, requiring costly special "rigging", became the financial responsibility of the Theatre. The cost: $38,000. A donor came forward contributing a portion of the Page 3. cost; the City's funding paid for the balance, $13,000. The shell is used for all classical performances, whether the performance be a full orchestra, a chamber ensemble, or single performer. The McCallum historically has had and continues to have strong support from local classical music patrons. On January 17, 2000 a formal dedication of the shell will be held just prior to PSFLAP sponsored performance of The Royal Philharmonic Orchestra at the Theatre. Before the McCallum opened in January 1988, a brand new state-of-the-art Mitel telephone system was installed. The system, which had served the Theatre well, was "technically" out-of-date by 1988 when computerized telephones were introduced. For some years now, parts for that system have been obsolete; only available were costly refurbished parts...and we had purchased our share. The system, year by year, became less and less reliable—all share output ports had failed. The next failure would result in considerable expense to repair, as circuit cards would need to be replaced — one each year at a cost of approximately $1,000 per year. The decision was made late spring 1999 to "bite the bullet" and purchase a MITEL SX-200 ML DIGITAL ELECTRONIC BRANCH EXCHANGE TELEPHONE SYSTEM at a cost of$28,000. The new system, along with other cost savings, lowers our local phone bill by $400.00 per month by utilizing T-1 service with no metered charges — we had been paying approximately $.01 per minute (daytime) for local calls. This system offers us voice mail and auto-attendant features which have increased staff efficiency and productivity—and improved our telephone "image" with our patrons and vendors who had complained regularly about our phones and the lack of voice mail service. Addition- al features include built-in head set connections on box office sales lines, busy lamp fields which will allow staff to monitor phone usage, and the ability to close box office sales lines without taking the phone off the hook. The cost was funded in part by the R.C. Baker Foundation ($5,000.00) and in significant part from the City of Palm Desert funding ($23,000). Attached to this narrative is an accounting to date of the City of Palm Desert charitable contri- bution totaling $107,260.00. Some targeted expenses for the balance of the contribution received ($17,740.00) include the following to be incurred over the next five months: 1. Spring 2000 week long visit to MTI by Cathryn Williams and Jean Taylor from Lincoln Center Institute. As was done last year, this trip will include the reception for MTI supporters, Teaching Artist training (advanced Teaching Artist training for our current TA faculty and Teaching Artist Training for new teaching artists being added to the AEP faculty) by Ms. Williams, Ms. Taylor and Education Director Kajsa Thuresson-Frary, and an introductory aesthetic education workshop for teachers and administrators from the four involved school districts with our mentors from LCI. The 1999/2000 AEP includes all four disciplines—with the visual arts to be expanded to serve all Page 4. participating teachers (last year visual arts was only available to returning teachers). For this reason, as well as for the reason that it is anticipated the AEP teacher participation will grow to include another 25-27 teachers for 2000/2001 (total 68-70)1 additional Teaching Artists (5-6) will have to be hired to join our current faculty of fourteen (14) to meet the needs of increased enrollment and the expansion of the visual arts component. Last year's costs for the week long Teaching Artist training was $9,200+. It is anticipated costs this spring will be approximately $12,500.00. 2. Continuing with the AEP will be Dr. Sue Teele, Director of Extension at the University of California, Riverside and Director of The Renaissance Project as Teacher of Record for the Aesthetic Education Program. Dr. Teele will again lecture during Summer Session and is the professor for those classroom teachers will will take the AEP for graduate degree credit. Dr. Teele's fee last year was $1,500.00. We are anticipating a similar cost for 2000/2001. 3. Over the last four years the Theatre has collaborated (the first three years with Palm Valley School and last year MTI with The English Speaking Union) to host a Shakespeare Competition for high school students. MTI and The English Speaking Union (ESU) co-producing the event in 1999 took the local competition to a higher level and broadened its outreach significantly. Last year 45 student competitors (vs. 12-14 the first three years) from three counties, Riverside, San Bernardino and Kern participated in the competition with the winner going to Lincoln Center in New York for the national finals in April 1999. On February 24, 2000 students who have won at their local competitions will converge on the McCallum with the winner, again, being sent to New York for the national finals. Coordination of this event is very time consuming and involves many elements. MTI and The English Speaking Union determined that a paid coordinator was needed to plan and produce the event. Neither organization had the staff resources to coordinate the event itself. The cost to MTI for the expertise and time of the coordinator, Mr. David Koslow of The Shakespeare Reading Club - from September 1999 through February 2000 - is $3,000,00, with the ESU picking up the balance of the coordinator fees as well as other significant costs of the event, i.e. all paid advertising. Last year's costs to MTI were $1,325.00 for backstage labor. February 2000 costs will include the backstage labor estimated at $1,500.00 plus the $3,000.00 ($1,200 having been paid to date with City funds) for the event coordinator. As was done last year, promotional efforts will begin in earnest January 2000 to attract local residents to watch the FREE evening performance of the Competition's Finalists. t MTPs Aesthetic Education Program is designed as a continuing education program for the classroom teacher. Teachers who have successfully completed the 1998/1999 and 19992000 AEP will return to Summer Session 2000/2201 and will participated in specialized/advanced workshops for AEP trained classroom teachers. New teachers joining the program will participate in a week and a half of Summer Session training in fundamental aesthetic education.The 20002001 Summer Session is being increased from five days to eight days of workshops to meet the needs dictated by program expansion. Page 5. Our second report is due to the City not later than April 30, 2000 and at that same time we will submit our proposal for the funding year 1999/2000. Again, we thank the City for its continuing generosity and support — it is sincerely appreciated. We continue to endeavor to use the financial contribution responsibly and productively. Please know, as always, that our CEO, Mr. Giatas, Ms. Thuresson-Frary, Education Director, and I welcome your comments, observations and questions. Very truly yours, LOIS GIANNOPULOS Development Associate— Grants and Administration Cc: Mr. Ray Diaz,City Manager Mr.Ted Giatas,Executive Director/CEO,McCallum Theatre Ms. Kajsa Thuresson-Frary,Education Director,McCallum Theatre Institute enclosures EXHIBIT "A" Accounting—July 1999 through December 1999 City of Palm Desert$125,000.00 Charitable Contribution 1. McCallum Theatre Institute (MTI)Education Director salary for period July 1999 through Decem- ber 1999. Ms. Thuresson-Frary's salary: $ 18,750.00 2. McCallum Theatre Institute (MTI) Grant Administrator salary for period July 1999 through Decem- ber 1999. Ms. Giannopulos' salary: $ 8,340.00 3. McCallum Theatre Institute (MTI)part-time administrative assistant wages for period October through December 1999. Mrs. Yeates' wages: S 800.00 4. Aesthetic Education Program(AEP) Summer Session focus works: artist fees: Summer Session Focus Work artist fees: San Jose Taiko- $6,000 Repertory Dance Theatre- $7,750 Brenda Wong Aoki- $7,500 $ 21,250.00 5. Aesthetic Education Program(AEP) Summer Session focus works: backstage labor: Summer Session Focus Work backstage labor fees: San Jose Taiko- $1,756 Repertory Dance Theatre- $3,043 Brenda Wong Aoki-$3,713.00 $ 8,512.00 6. Aesthetic Education Program(AEP) Summer Session: Teaching Artist mileage: Summer Session Teaching Artist mileage: Mark Almy- $478 Steven Schmidt- $444 Scott Smith - $50 Xavier Cortez- $429 Carey Smith - $447 Jeanette Knight-$393 Patrick O'Neill- $86 Michele Gaines- $109 Robert Todd- $208 Steve Graham- $105 Terri Hayes- $57 Paul Cracchiolo- $44 Shea New- $112 S 2,962.00 Page 2. 7. Aesthetic Education Program (AEP) Teaching Artist Planning Session and Residency wages for Repertory Dance Theatre focus work: Teaching Artist wages for Repertory Dance Theatre focus work: Shea New- $1,590 Michele Gaines- $3,000 Jeanette Knight- $2,625 $7,215.00 8 Aesthetic Education Program(AEP) Teaching Artist mileage for Repertory Dance Theatre Planning Sessions and Residencies: Teaching Artist mileage costs for Repertory Dance Theatre: Shea New- $38 Michele Gaines-$325 Jeanette Knight- $639 $1,002.00 9. Aesthetic Education Program (AEP)Repertory Dance Theatre November 2, 1999 student perform- ance: backstage labor: Backstage labor costs: $2,220.00 10. Aesthetic Education Program (AEP)Repertory Dance Theatre performance: miscellaneous costs: Miscellaneous costs: Meals- $45 Allied Vaughn - $109 Supplies- $34 KajsaTF(mileage) - $20 $209.00 11. Orchestra Shell Rigging equipment& installation: $13,000.00 12. Mitel SX-200 ML Digital Exectronic Branch Exchange Telephone System: $23,000.00 TOTAL: $107,260.00 SCHEDULE B REPORT OF SERVICES RENDERED AND TO BE RENDERED (DUE JANUARY, 2000) CONTRACTORS, by its duly authorized official, hereby submits to the CITY OF PALM DESERT its report on services rendered and to be rendered b Contractor pursuant to that certain ES P Y "Agreement by Non-Profit Organization to provide services to the CITY OF PALM DESERT" effective the first day of July, 1999. CONTRACTOR certifies that it has maintained its office during the hours contracted for, and has continuously provided all services contracted for, and assures the City it will conduct all programs contracted for. Included in the services provided, Contractor has, during the period covered by this Report, performed the following approximate services during the period July 1, 1999 to December 31, 1999. The undersigned,the duly authorized official of the Contractor, certifies that the information provided herein is true and correct. Dated: January 3, 2000 By: Ted iat s Execut a Director/CEO `rl �•� ummer ession MCCALLUM THEATRE INSTITUTE AESTHETIC EDUCATION PROGRAM theatre dance music visual art 1999 INTRODUCTION It's been almost two years since the McCallum Theatre Institute MTI), the education wing of the ° ' ° /A\CCm McCallum Theatre for the Performing Arts, was established. In two short years so many things have been accomplished, new projects and programs have been developed, and experiences tilo-m-ld l� 11" Jm@ A Sd and breakthroughs shared. Through the Aesthetic Education Program, MTI has developed ongo Czg5f IdrQi,fli.=etrf,,4+u *,Ji* ing partnerships with students, teachers and school administrators in Coachella Valley, Desert m4641146 .dworw,i ,au_Wk roI Sands, Palm Springs and Marengo Unified School Districts. As MTI opens its doors to the sec- ft'tw& .734 tt"la wig hq wsAUA If, IIM and annual Summer Session- 156 classroom sessions in aesthetic education later-it seems hard 1-4 t9tC:�&Jn7 At c�u`EiBtdt�i CraiM`K�SP�i to believe that this program is only one year old. nwdj IMp 1! 3 rig,t o btytis'OD 6t d4( °7 AD CPA 0 0io W,11acatrawaill jpwii irk I It is the Institute's belief that perceiving and understanding the aesthetic dimension in art and in Crzo P—JIlcs)(hW16Wtr 4"gwt-rG!w{b} life is as basic to enlightened citizenship as understanding the working of numbers, of words, of flkat,"am-i kX )W6 111 Iikom v noco,hw)�1 history, and social traditions and that achieving that kind of understanding should be part of the C�946(iff Wim 11i awl if s.,,46•3uu0 of learning experiences of all students. As practiced by McCallum Theatre Institute, aesthetic edu- .jT,tsc4kre7PeoXaligay`k--stirpr�i on-ji. Ilk- cation refers to helping students of all ages develop two interrelated capacities: a receptivity to AM', A °rA v'[,.eaWmJ'I ©i, a�tr�9'rolnYaA experiencing any given work of art, and the ability to reflect on that experience. By cultivating r ya u!cwgroltiv W N#, 1W ip III (4)4? , '�;4..� these capacities, students can gain practical insights and capabilities that can be applied to (r irpt;q ttA0 wis.n o I stq n7YfCe6 s�r)-4bg, other studies and other areas of life. Abstract thinking and problem-solving ability, for example, 1.'3L�'At9.�kv 9Wl i wegaffi 'fL which are improved through this practice,are equally important in studying a modern dance per- iN RIN6,1 (ii'imi wafw, WA (6)arAlr*0A °@ formance, conducting a biology experiment, or solving a mathematical equation. In the aesthetic n ° rk-T®rrn-df ° ° nWT flit ww °v..., a i education process, these skills are developed as educators and their students become involved c§r f9 ww ay4a5 C�(ii"dt%7n mA s '4'`f w In carefully planned encounters with works of art. In these encounters the participants are active iti,.` r'�hr", v nrtf.C+ �r,L-1 yl 7f' Ik'C."moft�c tf>,Y�,o ly engaged in observing, listening to, researching and discussing the works, and exploring them 'OM;TIM F11], T i t%?)rrorm eUid& or, through participatory activities. ' (6615,,@rn0 zs4pAli A,Now +wow-Y, r[atK�t si'».�ii lfY:?rs:�ib%r�r rz�Ft°rre�-c, This educational process is designed to heighten students' perceptual ability; expand their under- r ri�s:ai- &4 ✓ltavjil 'o;i @.,ii r°.ra�i`'va, standing of the underlying structure - including the social, cultural and historical contexts from '1'> -°f'rq- r "aw kg"'+a. which a work of art is created, illuminate the choices made by artists which help shape the per- QF>i u,9 mr'44F 19 ° v0nls� tv Airs, vmi1j'" ceiver's experiences, and highlight the relationship of aesthetic experiences to other educational NMI, tgaafd r kwve 'l r i vo, and human experiences- � a- < ry fe'°tr;ltaU t�r`CaA [=s 97u �S.h As perceives we have a tendency to Ld e a work of art at first lance, saying we either like it A°Yu0 ++7FxaC } ;°70."oU2aGi tj yraiigii7fy, P Y judge g Y is ilrC �`^, Cif'+� or we don't. The aesthetic education process encourages us to go beyond this Initial response ; fi*j1iU:+(rXs il;°�t it,4ilIr9 c,� and instead describe, analyze or interpret before judging, and to support and justify the judge rmkorTtsrt+i, �"� `°°1hP a ; r a t Yer ments using the insights that we have gained working with a specific work of art. 1;W! { rtu�f l; tip wwj° fi7ir.. Ali w"Wry F tb o t9�78 aa�D d �gf1t This summer MTI offers an introductory course for new teachers and also specialized workshops "�ff "`"mil_--Ors;Vs Awwj ' 1friovigN r`�4 for returningteachers-teachers who entered the Aesthetic Education Program last summer. New 9 Jb uWY,r III .+itkglBulL�t w t6hi ,P00�' g hZi� for our second year is also the visual arts component, which has been developed in partnership rIj WWI Awiu co"l 'y('D_�afi`w yoR. � � with Palm Springs Desert Museum. (&,;illl AltAkw #@l'kkl�',co AP,vnG oiw�ifs ill ljww"itux v,9 a Uoia a�% Sixty educators will participate in Summer Session 1999. The focal point for study is four live Ikak"N&Vxwk performances and one exhibit of visual artworks - the Focus Works At the beginning of the '�ctCaoj{kiG? 1�I1 n`Y�'*g rG plYa emrw pf i W g g ,-uyr � I Aw— wt 6) school year, participating teachers will select Iwo Focus Works for study in their classroom_MTI Ldrw-A ifs @ 6 ' r(�I,'1J.`6)yV*u a � will send out professional artists trained in aesthetic education to collaborate with the classroom PO7�-,t Ir�W�4ffj Ct�C)44h7 f�c, °°it�r if,�§'nte n oj`nK?7u. teachers on planning and implementation of o unit of study around the selected Focus Work. As °Ngt4�F��,� e part of the unit, the teachers and students see a live performance of the work at the McCallum, 'fix(I-i Cl+c, 'fir°°j'&%Iokojl�u or visit the Museum to see the Exhibit. Approximately 2,500 students will be Involved in aes- thetic education studies through MTI during the 1999/2000 school year. MUM San Jose Taiko The music of San Jose Taiko weaves traditional Japanese sounds with a the beat of world rhythms. Japanese, African, Balinese, Latin and American rock and jazz merge to produce an innovative comempo- 0 1 F fYl • rary sound that bridges diverse styles. With its roots in the folk tradi- a ? �i h �k Fy tion of Japan, the taiko has served many purposes. Priests used taiko o to chase evil spirits and insects from the rice fields; samurai used taiko to bolster their courage and to instill fear in the enemy; villagers used y. taiko to pray for rain, to enliven festivals, and to give thanks for boun-tiful harvests. The practice and performance of taiko requires selfless _� Ci dedication, physical endurance, harmony and a collective spirit. San Jose Taiko has adopted these traditional values and infused the art of s x taiko with the vitality and freshness of their American spirit to create a dynamic and compelling art form. Monday June 21, 3 PM DANCE t } ORepertory Dance Theatres Repertory Dance Theatre IRDTI, founded in 1966 in Salt Lake City, is a professional modern dance company dedicated to the creation, Nti 't, perpetuation and appreciation of American modern dance. RDT is both a museum and contemporary gallery representing the scope and � s _ •- / .,i diversity of modern dance past and present. The dance works pre- J sented as part of the McCallum Theatre Institute Focus Work are: V) Septet, choreography by Merce Cunningham (1953); Spanish Dance, choreography by Daniel Nagrin 119481; The Envelope, cho- reography by David Parsons (1984); and Turf, choreography by Shapiro and Smith 11997) Tuesday June 22, 3 PM Q- ' EThursday June 24, 3 FM D �lt II` THEATRE i /1 Brenda Wong Aoki V Ji v Brenda Wong Aoki creates intense, lyrical, solo theatre pieces. Her o work is a distinctive blend of dance, music and theatre from both < Western and Japanese dramatic traditions. Uncle Gunpro's Girlfriend J is based on the true story of the first mixed marriage in California - an incredible tale of forbidden love between Aoki the Samurai and O the Archdeacon's Daughter that made headlines across the nation in -a r 1909. This is a multimedia production featuring composer and musi- cian Mark Izu. Tales from the Pacific Rim is a performance of folktales \/ co / and oral histories, which includes: Twilight Crane, Monkey Defeats Death, Okiku and the Saucers, Why Some People are Left-Handed and Grandpa, A Reflection. 4 Uncle Gunlim's GirNriend-Wednesday June 23,3 PM Tales from the Pacific Rim•Friday June 25,3 PM p VISUAL ARTS LL Twelve Figurative Artworks m ` A Selection of Twelve Figurative Artworks Spanning Centuries, l Cultures and Media The breadth of time and media to be explored 0 Il in these figurative artworks invites us to engage our imagination with f the ancient and the contemporary. Twelve artworks in the permanent O Q collection of the Palm Springs Desert Museum have been carefully C a selected for us to investigate and experience. Among other artworks, - - Gt the selections include an artwork created in Egypt 3,000 years ago, aa) o Auguste Radius The Thinker and John Buck's contemporary Brazilia. N (Open to Returning Teachers only) Q LL Friday June 25 Fwgusrne Rodin french,18461917 THE THINKER,1880neduce6 in 1898 bronze, June M T W- �T 3-a SUMMER SESSION SCHEDULE NEW TEACHERS ' g 9 10 11 12 13 JUNE 21 -25,1999 14 IS 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 Lead Teaching Artists:Paul Cracchiolo,Music;Michele Gaines,Dance;Jeanette Knight, Theatre. Wednesday :00 : ; g 115 ' :30 AM :45 :00 9:00 AM•9:20 AM 9:00 AM-12:30 PM Lecture 9:00 AM-10:45 AM The 9:00 AM.10:45 AM Dance 9:00 AM-10:45 AM Aesthete 9 Welcome! Dr.Sue Teele Palm Desert Workshop 1 Workshop 1 is Education in the Class- :15 ,9:30 AM-10:45 AM Music Library,Community Room TAa:Jeanaoe Knignt Steven TA Miele Gaines mom Session 1 Graham a Panel,O'Neill - TAW.ira1sa Thuresson-Frary. 73q Workshop 1 PaulC acohio1'.Mian TAs:Pool CrocNiolo and Gaines 3 Jeanette Knight 4M :45 Ste esrlunidt -:00 10:45 AM-11:00 AM Break 10:45AM-II:OOAMBreak 10:45 AM-11:00 AM Break 10:45AM•11:00AMBreak 10:45 AM-11:00 AM Break 10 :30 AM :45 :00 11:00 AM-12:30 PM Music II:OOAM-12:30PMTheat- ll:OOAM-12:30PMDancc 11:00 AM-12:30PMAesthe- 11 Workshop 2 re Workshop 2 Workshop 2 tic Education in the Class- :15 room Session 2 :30 AM :00 12:30 PM-1:30 PM Lunch 12:30 PM-1:30 PM Lunch 12:30 PM-1:30 PM Lunch 12:30 PM-1:30 PM Lunch 12:30PM•1:30 PM Lunch 12 ;30 PM :45 ;00 1:30 PM-3:00 PM Music 1:30 PM 3:00 PM Dance 1:30 PM-3:00 PM Theatre 1:30 PM-3:00 PM Dance 1:30 PM-3:00 PM Theatre 1 15 Workshop 3 Workshop 1 Lobby Workshop 3 Workshop 3 WMurkswoapu Knight Steven TA Michele Gaines Graham 8 Patdck GNeill :36 PM '45 2 :15 '36 PM 00 3:00 PM-4:00 PM San Jose 3:00PM-4:00PMRepenery 3:OOPM-4:15PMBrenda 3:OOPM•4:OOPMRepenary 3:00PM-4:00PMBrenda 3 Taiko Performance Dance Theatre Perfor- Wong Aoki"Lode Gunjir- Dance Theatre Pedar- Wong Aoki"Tales of the :15 man n e One ds Girlfriend" mane Two Pacific Rim"Performance :30 Performance PM ,00 4:00 PM-4:15 PM Break 4:00 PM-4:15 PM Break 4:15 PM-4:45 PM Q&A 4:00 PM-4:15 PM Break 4:00 PM-4:ISPM Break 4 4:15 PM-4:45 PM Q&A 4:15 PM-4:45 PM Q&A with Brenda Wong Aoki 4:15 PM-4:45 PM Q&A 4:l5PM-4:45PMQAAwith :15 with San Jose Taiko with Repertory Dance 4:45 PM-5:00 PM Postshow with Repertory Dance Brenda Wang Aoki :30 4:45 PM.5:00 PM Postshow Theatre Discussion Theatre 4:45 PM-5:00 PM Postshow - - Discussion 4:45 PM•5:00 PM Posshow 4:45 PM-5:00 PM Postshow Discussion PM % D scussion - Discussion 5:00 PM-6:00 PM Closing S :00 , Reception-Wine&Hors :15 D'oeuvres '30 ' PM :45 6 ' Go .30 ' PM :45 An Introduction to Aesthetic Education for New Teachers,Summer Session June M TM T WTr2 T S SUMMER SESSION SCHEDULE RETURNING TEACHERS 7 8 9 10 11 12 13 JUNE 21 - 25, 1999 14 15 16 17 18 19 20 21 22 23 24 25 26 27 Teaching Artists:Mark Almy&Scott Smith, Music;Xavier Cortez& Terrie Hayes, Visual 28 29 30 Arts; Carey Curtis Smith, Theatre; Shea New&Robert Todd, Dance. 21 Monday 22 Tuesday 23 Wednesday 24 Thursday 25 Friday 'OQ 8:00 AM-12:30 PM Visual i 8:00 AM•10:00 AM Visual :15 T XavierC nftand Tena TT a Xaviets r Workshop and Tent 8 30 HayesHayes AM:;' QQ 9:00 AM-9:20 AM Welco- 9:35 AM-9:40 AM Break 9:OOAM-10:45AMTheatm 9:OOAM-10:45AMDance 15 mel Lobby Workshop 1 Workshop 1 TA Carey Cwas Sm ,9:30 AM•10:45 AM Music ith TAsaew Shea N.and Robert 5:30 Workshop 1 Smth my and seob oQ 10:45 AM-I1:00 AM Break 10:45AM-11:OOAMBreak 10:45AM-11:00AMBrmk 10:OOAM-10:45AMBreak 1 O -transport to Palm Springs 15 10:45 AM-I2:30 PM Exhibit of 30 PS1Desert Mu m eu arks, AM r i45 -QQ 11:00 AM-12:30 PM Music ll:10AM-11:25AMBreak 11:00AM-12:30PMThcm- 11:00 AM-12:30 PM Dance Workshop re Workshop Workshop 30 AM -45 ;QQ 12:30 PM-1:30 PM Lunch 12:30 PM-1:30 PM Lunch 12:30 PM-1:30 PM Lunch 12:30 PM-1:30 PM Lunch 12:30 PM-1:30 PM Lunch 12 30 PM : :45 .•QQ 1:30 PM-3:00 PM Music 1:30 PM-5:00 PM Lecture 1:30 PM-3:00 PM Theatre 1:30 PM-3:00 PM Dance 1:30 PM-3:00 PM Theatre - Workshop Dr.Sue Tmle"Rainbow Workshop Workshop Workshop 15 oflntelligences-How TA Carey Curtis Smim 1 :3Q Students Learn" PM. .'`.45 .Location: Conn nuniN R mmsen Library. '00, 15 :30 PM :45 3 ;00 3:OOPM-4:O0PMSan Jose 3:00 PM-3:15 PM Break 3:00 PM-4:15 PM Brenda 3:00 PM-4:00 PM Repet4:OOPM -4:00 PM Brenda Taiko Performance Wong Aoki"Uncle Gunjir• Dance TheatreAoki"Tales of the :15 os Girlfriend" Performance Rim"Performance :30 Performance PM , ;45 '00 4:00 PM-4:15 PM Break 4:15 FM 4:45 PM Q&A 4:00 PM-4:15 PM Brea -4:15 PM Break 4:15 PM-4:45 PM Q&A with Brenda Wong Aoki 4:15 PM-4:45 PM Q&A -4:45 PM Q&A with- 15 with San lou Taiko4:45 PM-5:00 PM Postshow with Repertory Dance Wong Aoki 4 '".30 4:45 PM-S:OO PM Postshow discussion Theatre -3:00 PM Postshow discussion 4:45 PM-5:00 PM Postssion PM -.45 discussion -•00 , :30 PM:_- - :45 :00 , 15 30 pM. 1-1 :45 Summer Session for Returning Teachers,1999 Philip Angelides r� y tv Y I � # a � 1 /V 1, � NIAL"OY, 0 N -- T \ IN Vtg. Ti t 0ARD" 0RT October 1999 STATE OF CALIFORNIA STATE TREASURER'S OFFICE POOLED MONEY INVESTMENT BOARD REPORT OCTOBER 1999 , TABLE OF CONTENTS SUMMARY...........................................................................1 SELECTED INVESTMENT DATA.............................................2 PORTFOLIO COMPOSITION...................................................3 INVESTMENT TRANSACTIONS...............................................4 TIME DEPOSITS..................................................................14 DEMAND BANK DEPOSITS...................................................22 POOLED MONEY INVESTMENT BOARD DESIGNATION..........23 POOLED MONEY INVESTMENT ACC•NT SUMMARY OF INVESTMENT DATA A COMPARISON OF OCTOBER 1999 WITH OCTOBER 1998 (DOLLARS IN THOUSANDS) OCTOBER 1998 97 ER 1998! CHANGE Average Daily Portfolio $ 31,939,867 $ 31,218,919 $ +720,948 Accrued Earnings $ 145,832 $ 147,354 $ (1,522) Effective Yield 5.391 5.557 -0.166 Average Life Month End (In Days) 194 184 +10 Total Security Transactions Amount $ 14,156,318 $ 19,270,925 $ (5,114,607) Number 314 431 417 Total Time Deposit Transactions Amount $ 678,600 $ 1,147,790 $ (469,190) Number 64 76 -12 Average Workday Investment Activity $ 741,746 $ 972,320 $ (230,574) Prescribed Demand Account Balances For Services $ 211,828 $ 177,619 $ +34,209 For Uncollected Funds $ 132,800 $ 130,565 $ +2,235 1 • PHILIP ANGELIDES TREASURER . STATE OF CALIFORNIA INVESTMENT DIVISION SELECTED INVESTMENT DATA ANALYSIS OF THE POOLED MONEY INVESTMENT ACCOUNT PORTFOLIO (000 OMITTED) OCTOBER 31, 1999 PERCENTAGE CHANGE FROM TYPE OF SECURITY AMOUNT PERCENT PRIOR MONTH Government Bills $ 2,017,602 . 6.44 -0.34 Bonds 0 0.00 0 Notes 2,747,815 8.76 +0.13 Strips 0 0.00 0 Total Government $ 4,765,417 15.20 -0.21 Federal Agency Discount Notes $ 3,262,514 10.41 +1.0 Cerifficates of Deposit 5,179,103 16.52 -2.17 - Bank Notes 1,892,982 6.04 +0.4 Bankers'Acceptances 0.00 0 Repurchases - 0.00 0 Federal Agency Discount Notes 3,538,064 11.29 +0.37 Time Deposits 2,575,490 8.21 +1.09 GNMAs 1,545 0.00 0 Commercial Paper 6,356,740 20.28 -3.89 FHLMC 15,190 0.05 +0.111 Coporate Bonds 2,298,060 7.33 +0.74 Pooled Loans 1,875,882 5.98 -0.61 GF Loans 727,700 2.32 +2.32 Reversed Repurchases (1,137,631) -3.63 -1.07 Total(All Types) $31,351,056 100.00 INVESTMENT ACTIVITY OCTOBER 1999 SEPTEMBER 1999 NUMBER AMOUNT NUMBER AMOUNT Pooled Money 314 $14,156,318 385 $17,460,262 Other 59 157,230 20 11,409 Time Deposits 64 678,600 79 875,640 Totals 437 $14,992,148 484 $18,347,311 PMIA Monthly Average Effective Yield 5.391 5.274 Year to Date Yield Last Day of Month 5.265 5.224 2 Pooled Money Investment Account 10/31/99 Portfolio Composition $31 .4 Billion Reverses Loans -3.63% Treasuries 0 8.30/o 15.20% Corporate A Bonds 7.33% ;* Time Deposits 821% gTreasuries 6Time Deposits Mortgages ■Mortgages 0.05% ©Agencies Commercial € i CD's/BN's Paper 20.28% El Bankers Acceptances ■Repo --------------- 0 Commercial Paper Agencies p Corporate Bonds 21.70% O Loans ®Reverses CD's/BN's 22.56% 3 POOLED.MONEY INYESTMENT;ACCUNT=_ H/ ` MATURITY !;TRANS ?DAYS A�IIOUNT EFFECTIVE = `- _ E .> 10/01/99 REDEMPTIONS BN FNB Chic 5.170% 10/01/99 5.170 $15,000 78 $168,025.00 5.241 BN FNB Chic 5.170% 10/01/99 5.170 50,000 78 560,083.33 5.241 BN FNB Chic 5.170% 10101/99 5.170 50,000 78 560,083.33 5.241 CD Deutsche 5.250% 10/01/99 5.250 25,000 59 215,104.17 5.322 CD Deutsche 5.250% 10101199 5.250 50,000 59 430,208.33 5.322 CP GECC 10/01/99 5.550 50,000 1 7,708.33 5.627 CP GECC 10/01/99 5.550 50,000 1 7,708.33 5.627 CP GECC 10/01/99 5.550 50,000 1 7,708.33 5.627 CP GECC 10/01/99 5.550 50,000 1 7,708.33 5.627 CP Heller 10/01/99 5.360 50,000 46 342,444.44 5,471 CP GECC 10/01/99 5.090 50,000 78 551,416.67 5,218 CP GECC 10/01/99 5.090 50,000 78 551,416.67 5.218 CP Heller 10/01/99 5.240 50,000 87 633,166.67 5.380 CP FMCC 10/01/99 5.160 50,000 94 673,666.67 5.303 CP FMCC 10/01/99 5.160 50,000 94 673,666.67 5.303 CP GMAC 10/01/99 5.180 50,000 94 676,277.78 5.323 CP GMAC 10/01/99 5.180 50,000 94 676,277.78 5.323 CP JP Morgan 10/01/99 5.190 50,000 94 677,583.34 5.334 CP JP Morgan 10/01/99 5.190 50,000 94 677,583.34 5.334 CP GMAC 10/01/99 5.160 50,000 95 680,833.33 5.303 CP GMAC 10/01/99 5.160 50,000 95 680,833.33 5.303 Disc Notes FHLMC 10/01/99 4.460 50,000 361 2,236,194.44 4.733 Disc Notes FHLMC 10/01199 4.460 50,000 361 2,236,194.44 4.733 PURCHASES CP Assoc 10104/99 5.370 50,000 CP Assoc 10/04/99 5.370 50,000 CP Assoc 10/04/99 5.370 50,000 CP Assoc 10/04/99 5.370 50,000 CP GMAC 10/04/99 5.400 50,000 CP GMAC 10/04/99 5.400 50,000 CP Amer Exp 10/05/99 5.330 50,000 CP Amer Exp 10/05/99 5.330 50,000 10/04199 REDEMPTIONS CP Assoc 10104/99 5.370 50,000 3 22,375.00 5.447 CP Assoc 10/04/99 5.370 50,000 3 22,375.00 5.447 CP Assoc 10/04/99 5.370 50,000 3 22,375.00 5.447 CP Assoc 10/04/99 5,370 50,000 3 22,375.00 5.447 CP GMAC 10/04/99 . 5,400 50,000 3 22,500.00 5.477 CP GMAC 10/04/99 5A00 50,000 3 22,500.00 5.477 CP Household 10/04/99 5.300 50,000 35 257,638.89 5.401 CP Heller 10/04199 5.360 50,000 49 364,777.78 5.474 CP GMAC 10/04/99 5.200 50,000 62 447,777.78 5.319 CP GMAC 10/04/99 5.200 50,000 62 447,177.78 5.319 CP JC Penney 10/04/99 5.360 50,000 90 670,000.00 5.508 CP FMCC 10/04/99 5.200 10,000 96 138,666.67 5.346 CP FMCC 10/04/99 5.200 50,000 96 693,333.33 5.346 4 POOLED MONEY INVESTMENT AGCOU d, i ag a1 MATURITY TRANS_• PAR - `DAYS AMOUNT EFFECTIVE nc5G2PT10N 10/04/99 REDEMPTIONS (continued) CP FMCC 10/04/99 5.200 50,000 96 693,333.33 5.346 CP FMCC 10/04/99 5.180 50,000 97 697,861.11 5.326 CP FMCC 10/04/99 5.180 50,000 97 697,861.11 5.326 CP JP Morgan 10/04/99 5.190 50,000 97 699,208.34 5.336 CP JP Morgan 10/04/99 5.190 50,000 97 699,208.34 5.336 CP FMCC 10/04/99 5.160 50,000 98 702,333.33 5.306 CP FMCC 10/04/99 5.160 50,000 98 702,333.33 5.306 MTN GMAC 6.050% 10/04/09 6.100 35,000 717 4,191,434.72 6.102 PURCHASES CP Amer Exp 10/05/99 5.300 15,000 CP Amer Exp 10/05/99 5,300 50,000 CP Household 10/05/99 5.300 50,000 CP Household 10/05/99 5.300 50,000 CP Merrill 10/05/99 5.300 50,000 CP Merrill 10/05/99 5.300 50,000 CP SRAC 02/08/00 5.950 50,000 10/05/99 REDEMPTIONS CP Amer Exp 10/05/99 5.300 15,000 1 2,208.33 5.374 CP Amer Exp 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Household 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Household 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Merrill 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Merrill 10/05/99 5.300 50,000 1 7,361.11 5.374 CP Amer Exp 10/05/99 5.330 50,000 4 29,611.11 5.407 CP Amer Exp 10/05/99 5.330 50,000 4 29,611.11 5.407 CP Comnwealth 10/05/99 5.650 10,000 5 7,847.22 5.732 CP Heller 10/05/99 5.400 50,000 7 52,500.00 5.533 CP Merrill 10/05/99 5.300 30,000 12 53,000.00 5.383 CP ConAgra 10/05/99 5.440 20,000 13 39,288.89 5.526 PURCHASES CP ConAgra 10/06/99 5.350 50,000 CP Amer Exp 10/08/99 5.230 50,000 CP Amer Exp 10/08/99 5.230 50,000 CP Text Fin 10/12/99 5.350 45,000 CP Heller 10/21/99 5.420 50,000 CP GECC 03/01/00 5.830 40,000 CP GECC 03/06/00 5.830 50,000 CP GECC 03/06/00 5.830 50,000 10/06/99 SALES Treas Notes 5.625% 12/31/99 5.075 50,000 615 4,672,697.47 5.533 Trees Notes 5.625% 12/31/99 5.075 50,000 614 4,664,928.13 5.533 Treas Notes 5.375% 01/31/00 5.175 25,000 588 2,268,248.69 5.653 5 't r" A _4. .. POOLED MONEY INVESTMENT A UNT a( a<. MATURITY TRANS, PAR,- ' $'DAYS; AMOUNT - EFFECTIVE �OAATE_ _ )ypE DEscR�anoNw ___, BAIE_ ,YIELQ .. "_tG4G1 HELR "..... EARNED 10/06/99 SALES (continued) Treas Notes 5.375% 01/31/00 5.175 25,000 588 2,268,248.70 5.653 Trees Notes 5.375% 01/31/00 5.175 50,000 588 4,536,497.38 5.653 Treas Notes 5.500% 03/31/00 5.214 50,000 463 3,576,430.25 5.641 REDEMPTIONS CP ConAgra 10/06/99 5.350 50,000 1 7,430.56 5.425 CP Rohm. 10/06/99 5.450 7,952 14 16,853.82 5.537 NO PURCHASES 10/07/99 REDEMPTIONS CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 CP FMCC 10/07/99 5.280 50,000 13 95,333.33 5.363 PURCHASES CP Armstrong 10108199 5.370 18,500 CP GECC 10/08/99 5.260 50,000 CP GECC 10/08199 5.260 50,000 CP GECC 10/08/99 5.260 50,000 CP GECC 10108/99 5.260 50,000 CP Rohm 10/08/99 5.300 50,000 CP Rohm 10/08/99 5.300 50,000 MTN Assoc 6.680% 06/05/00 6.030 7,000 MTN Assoc 6.330% 06109/00 6.027 18,500 10108/99 REDEMPTIONS CP GECC 10/08/99 5.260 7,000 1 1,022.78 5.333 CP Armstrong 10/08/99 5.370 18,500 1 2,759.58 5.444 CP GECC 10/08/99 5.260 50,000 1 7,305.56 5.333 CP GECC 10/08/99 5.260 50,000 1 7,305.56 5.333 CP GECC 10/08/99 5.260 50,000 1 7,305.56 5.333 CP Rohm 10/08/99 5.300 50,000 1 7,361.11 5.374 CP Rohm 10/08/99 5.300 50,000 1 7,361.11 5.374 CP Amer Exp 10/08/99 5.230 50,000 3 21,791.67 5.304 CP Amer Exp 10/08/99 5.230 50,000 3 21,791.67 5.304 CP ConAgra 10/08/99 5.600 14,200 9 19,880.00 5.685 CP GMAC 10/08/99 5.200 50,000 66 476,666.67 5.322 CP GMAC 10/08/99 5.180 50,000 98 705,065.56 5.327 CP GMAC 10/08/99 5.180 50,000 . 98 705,055.56 5.327 CP Household 10/08/99 5.170 50,000 102 732,416.67 5.319 CP FMCC 10/08/99 5.080 50,000 107 754,944.44 5.229 CP FMCC 10108199 5.080 50,000 107 754,944.44 5.229 6 POOLED MONEY INVESTMENT ACCOUNT , - ;, a dC AMOUNT EFFECTIVE' g/..,. of MATURITY TRANS PAR • -DAYS , 6ESGBIP�Dd DALE _ YIELf2 . —_ HELR _ EABtiEQ. _ _YIELR 10/08/99 REDEMPTIONS (continued) CP GECC 10/08/99 5.000 50,000 126 875,000.00 5.159 CP GECC 10/08/99 5.000 50,000 126 875,000.00 5.159 CP GECC 10/08/99 5.000 50,000 126 875,000.00 5.159 CP GECC 10/08/99 5.000 50,000 126 875,000.00 5.159 Disc Notes FHLMC 10/08/99 4.680 15,000 171 333,450.00 4.852 PURCHASES MTN Chase 5.818% 12/10/01 6.335 17,500 10/12/99 REDEMPTIONS CP Text Fin 10/12/99 5.350 45,000 7 46,812.50 5.429 CP Countrywide 10/12/99 5.410 33,000 13 64,469.17 5.495 Disc Notes FNMA 10/12/99 4.560 50,000 277 1,754,333.33 4.791 NO PURCHASES 10/13199 REDEMPTIONS CP GMAC 10/13/99 5.310 50,000 44 324,500.00 5.418 CP Salomon 10/13/99 5.220 10,000 68 98,600.00 5.345 CP GECC 10/13/99 5.190 50,000 71 511,791.67 5.316 CP GECC 10/13/99 5.190 50,000 71 511,791.67 5.316 CP GECC 10/13/99 5.190 50,000 71 511,791.67 5.316 CP GMAC 10/13/99 5.180 20,000 103 296,411.11 5.330 CP GMAC 10/13/99 5.180 50,000 103 741,027.78 5.330 CP Household 10/13/99 5.170 50,000 107 768,319.44 5.323 CP GECC 10/13/99 5.000 50,000 131 909,722.22 5.163 CP GECC 10/13/99 5.000 50,000 131 909,722.22 5.163 PURCHASES CP GECC 10/14/99 5.200 50,000 CP GECC 10/14/99 5.200 50,000 CP GECC 10/14/99 5.200 50,000 10/14/99 REDEMPTIONS CD Bayer Lnds 5.170% 10/14/99 5.165 50,000 80 573,339.64 5.231 CD Bayer Lnds 5.170% 10/14/99 5,165 50,000 80 573,339.64 5.231 CD Deutsche 5.190% 10/14/99 5.190 50,000 86 619,916.67 5.262 CD Deutsche 5.190% 10/14/99 5.190 50,000 86 619,916.67 5.262 CD CIBC 5.190% 10/14/99 5.190 50,000 90 648,750.00 5.262 CD CIBC 5.190% 10/14/99 5.190 50,000 90 648,750.00 5.262 CP GECC 10/14/99 5.200 50,000 1 7,222.22 5.272 CP GECC 10/14/99 5.200 50,000 1 7,222.22 5.272 CP GECC 10/14/99 5.200 50,000 1 7,222.22 5.272 CP GMAC 10/14/99 5.170 50,000 83 590,222.22 5.253 CP GMAC 10/14/99 5.170 50,000 83 590,222.22 5.253 7 POOLED MONEY INVESTMENTANT - • " " ) atMATURITY. TRANS .PAR' `. DAYS - AMOUNTI EFPEC7NEj D6TE .._ IYPE _QESCRIPTION _YIELQ _:, LQIIGI w HELQ _ ..EABNEQ' Y{ELD» i . ..OAg 10/14/99 REDEMPTIONS (continued) CP JP Morgan 10/14/99 5.100 50,000 84 595,000.00 5.233 CP JP Morgan 10/14/99 5.100 50,000 84 595,000.00 5.233 Treas Bills 10/14/99 4.440 50,000 339 2,090,500.00 4.698 Treas Bills 10/14/99 4.440 50,000 339 2,090,500.00 4.698 Treas Bills 10/14/99 4.197 50,000 344 2,005,472.22 4.433 Treas Bills 10/14/99 4.197 50,000 344 2,005,472.22 4.433 Treas Bills 10/14/99 4.200 50,000 344 2,006,666.50 4.436 Treas Bills 10/14/99 4.200 50,000 344 2,006,666.50 4.436 Treas Bills 10/14/99 4.135 50,000 345 1,981,354.17 4.365 Treas Bills 10/14/99 4.135 50,000 345 1,981,354.17 4.365 Treas Bills 10/14/99 4.140 50,000 345 1,983,750.00 4.370 Treas Bills 10/14/99 4.140 50,000 345 1,983,750.00 4.370 RRP Treas Bills 10/14/99 4.555 50,000 80 (501,038.36) -4.618 Treas Bills 10/14/99 4.555 50,000 80 (501,038.36) -4.618 Treas Bills 10/14/99 4.500 50,000 83 (512,265.62) -4.562 Treas Bills 10/14/99 4.500 50,000 83 (512,265.62) -4.562 Treas Bills 10/14/99 4.527 50,000 84 (522,629.07) -4.589 Treas Bills 10/14/99 4.527 50,000 84 (522,629.07) -4.589 Treas Bills 10/14/99 4.590 50,000 86 (542,306.97) -4.653 Treas Bills 10/14/99 4.590 50,000 86 (542,306.97) -4.653 Treas Bills 10/14/99 4.640 50,000 90 (573,350.30) -4.704 Treas Bills 10/14/99 4.640 50,000 90 (573,350.30) -4.704 PURCHASES BN B/A 6.030% 02/29/00 6.030 50,000 CP Rohm 10/15/99 5.300 28,030 CP GECC 03/01/00 5.880 50,000 CP W/F 03/08/00 5.870 25,000 CP W/F 03/08/00 5.870 50,000 10/15/99 REDEMPTIONS CP Rohm 10/15/99 5.300 28,030 1 4,126.64 5.374 CP JP Morgan 10/15/99 4.790 50,000 178 1,184,194.45 4.974 CP JP Morgan 10/15/99 4.790 50,000 178 1,184,194.45 4.974 Disc Notes FNMA 10/15/99 4.680 25,000 178 578,500.00 4.857 Disc Notes FNMA 10/15/99 4.680 25,000 178 578,500.00 4.857 Disc Notes FNMA 10/15/99 4.190 50,000 359 2,089,180.56 4.433 PURCHASES CD Deutsche 6.050% 01/10/00 6.050 15,000 CD Deutsche 6.050% 01/10/00 6.050 50,000 CP GECC 02/08/00 5.970 50,000 8 _.�R .. R -e .,3E 3` ) _ • _ ._ ry POOLED MONEY INVESTMENT ACCOU y MATURITY TRANS PAR DAYS AMOUNT EFFECTIVEE . _ . "DESCRIPTION �.LTATE YIELQ _ :_.- __-HELD ..%__ .. -. -' _. ._GATE r TYPE _ .__ __._. YELD 10/18/99 REDEMPTIONS CP Text Fin 10/18/99 5.400 15,450 19 44,032.50 5.490 CP GECC 10/18/99 5.310 50,000 19 140,125.00 5.398 CP GECC 10/18/99 5.310 50,000 19 140,125.00 5,398 CP Heller 10/18/99 5.400 50,000 19 142,500.00 5.490 PURCHASES CD Dresdner 6.060% 02/16/00 6.055 30,000 CP GECC 01/27/00 6.000 20,000 CP GECC 03/06/00 5.900 50,000 CP GECC 03/06/00 5.900 50,000 CP W/F 03/10/00 5.900 50,000 10119/99 NO SALES PURCHASES CP Morg Stan 02/16/00 5.960 30,000 CP Morg Stan 02/16/00 5.960 50,000 CP GECC 03/01/00 5.920 50,000 CP GECC 03/01/00 5.920 50,000 CP GECC 03/02/00 5.920 50,000 CP GECC 03/02/00 5.290 50,000 CP GECC 03/06/00 5.920 50,000 CP GECC 03/06/00 5.920 50,000 16/20/99 REDEMPTIONS CP Hertz 10/20/99 5.200 50,000 78 563,333.33 5.332 PURCHASES CP Heller 02/29/00 6.080 50,000 CP Heller 03/01/00 6.080 50,000 10/21/99 REDEMPTIONS CD Soc Gen 5.315% 10/21/99 5.315 50,000 57 420,770.83 5.388 CD Soc Gen 5.315% 10/21/99 5.315 50,000 57 420,770.83 5.388 CP Heller t0121/99 5.420 50,000 16 120,444.44 5.508 CP GECC 10/21/99 5.310 50,000 22 162,250.00 5.401 CP GECC 10/21/99 5.310 50,000 22 162,250.00 5.401 PURCHASES CP Morg Stan 01/10/00 6.100 5,000 CP Morg Stan 01/10/00 6.100 50,000 Trees Bills 10/12/00 5.142 50,000 Treas Bills 10/12/00 5.142 50,000 9 POOLED MONEY INVESTMENT AC-mNT _. .` . it �- ";se/ MATURITY TRANS `PAR "DAYS . AMOUNT --EFFECTNEi . .. J*M _ DAIS I=.__,:.DESCRIPTION r w Yji:t,Q .IQQQj. . -'AP2-...,, Q...-...., _ � .:_ _ _. 10/21/99 PURCHASES SJ Disc Notes FNMA 01/26/00 5.125 4,380 Disc Notes FNMA 03/10/00 5.125 50,000 Disc Notes FNMA 03/10/00 5.125 50,000 10/22/99 SALES r/ Disc Notes FNMA 01/26/00 5.125 4,380 1 601.62 5.196 Disc Notes FNMA 03/10/00 5.125 50,000 1 6,817.25 5.186 Disc Notes FNMA 03/10/00 5.125 50,000 1 6,817.25 5.186 PURCHASES CP Rohm 10/25/99 5.230 49,744 CP Morg Stan 01/12/00 6.100 50,000 CP Morg Stan 03/02/00 5.960 50,000 CP Morg Stan 03/02/00 5.960 50,000 CP GECC 03/29/00 5.910 50,000 CP GECC 03/29/00 5.910 50,000 CP GECC 03/29/00 5.910 50,000 Tress Bills 10/12/00 5.175 50,000 10/25/99 REDEMPTIONS I CP Rohm 10/25/99 5.230 49,744 3 21,680.09 5,304 NO PURCHASES 10/26/99 REDEMPTIONS CD B/A 4.700% 10/26/99 4.700 50,000 365 2,382,638.89 4.765 NO PURCHASES 10127/99 REDEMPTIONS BN B/A 5.310% 10/27/99 5.310 50,000 63 464,625.00 5.383 BN B/A 5.310% 10/27/99 5.310 50,000 63 464,625.00 5.383 CD U/B Calif 5.030% 10/27/99 5.030 50,000 153 1,068,875.00 5.099 CD U/B Calif 5.030% 10/27/99 5.030 50,000 153 1,068,875.00 5.099 CD Mellon 4.900% 10/27/99 4.900 50,000 181 1,231,805.56 4.968 CD Mellon 4.900% 10/27/99 4.900 50,000 181 1,231,805.56 4.968 CD Mellon 4.900% 10/27/99 4.900 50,000 181 1,231,805.56 4.968 CD Morg Guar 4.900% 10/27/99 4.900 50,000 188 1,279,444.44 4.968 CD Morg Guar 4.900% 10/27/99 4.900 50,000 188 1,279,444.44 4.968 CD Morg Guar 4.900% 10/27/99 4.900 50,000 188 1,279,444.44 4.968 CD Morg Guar 4.900% 10/27/99 4.900 50,000 188 1,279,444.44 4.968 CD Bkrs Trst 4,930% 10/27/99 4.920 50,000 189 1,291,566.10 4.988 CD Bkrs Trst 4.930% 10/27/99 4.920 50,000 189 1,291,566.10 4.988 CD Bkrs Trst 4.930% 10/27/99 4.920 45,000 190 1,168,560.11 4.988 CD Bkrs Trst 4.930% 10/27/99 4.920 50,000 190 1,298,400.12 4.988 10 POOLED MONEY INVESTMENT=ACCOU ,` aV _ dl MATURPTY TRANS PAR DAYS AMOUNT EFFECTNE EARNED YIELQ_ 10/27/99 REDEMPTIONS (continued) CD Westpac Bk 4.925% 10/27/99 4.915 50,000 190 1,297,080.61 4.983 CD U/B Calif 4.960% 10/27/99 4.960 35,000 191 921,044.44 5.028 CD U/B Calif 4.960% 10/27/99 4.960 50,000 191 1,315,777.78 5.028 CD Bkrs Trst 4,960% 10/27/99 4.950 50,000 191 1,313,192.89 5.018 CD BkrsTrst 4.960% 10/27/99 4.950 50,000 191 1,313,192.89 5.018 CP GECC 10/27/99 5.310 25,000 28 103,250.00 5.406 CP GECC 10/27/99 5.310 50,000 28 206,500.00 5.406 CP Household 10/27/99 5.310 50,000 28 206,500.00 5.406 CP Household 10/27/99 5.310 50,000 28 206,500.00 5.406 CP Comnwealth 10/27/99 5.500 26,000 44 174,777.78 5.614 CP GMAC 10/27/99 5.310 50,000 71 523,625.00 5.440 CP GMAC 10/27/99 5.310 50,000 71 523,625.00 5.440 CP GECC 10/27/99 5.160 40,000 110 630,666.67 5.315 CP GECC 10/27/99 5.160 50,000 110 788,333.33 5.315 CP GECC 10/27/99 5160 50,000 110 788,333.33 5.315 CP GECC 10/27/99 5.160 50,000 110 788,333.33 5.315 CP FMCC 10/27/99 5.150 50,000 110 786,805.56 5.305 CP FMCC 10/27/99 5.150 50,000 110 786,805.56 5.305 CP FMCC 10/27/99 5.150 50,000 110 786,805.56 5.305 CP FMCC 10/27/99 5.150 50,000 110 786,805.56 5.305 CP B/A 10/27/99 5.170 50,000 117 840,125.00 5.331 CP B/A 10/27/99 5.170 50,000 117 840,125.00 5.331 CP GMAC 10/27/99 5.240 50,000 120 873,333.33 5.407 CP GMAC 10/27/99 5.240 50,000 120 873,333.33 5.407 CP GMAC 10/27/99 5.140 50,000 126 899,500.00 5.306 CP Bear 10/27/99 5.070 50,000 132 929,500.00 5.237 CP Bear 10/27/99 5.070 50,000 132 929,500.00 5.237 PURCHASES CP Heller 02/08/00 6.150 x000 CP GECC 03/27/00 5.910 50,000 CP GECC 03/27/00 5.910 50,000 10/28/99 NO REDEMPTIONS PURCHASES CP Rohm 11/04/99 5.420 50,000 CP Rohm 11/05/99 5.420 50,000 CP Amer Exp 11/08/99 5.270 5,000 CP Amer Exp 11/08/99 5.270 50,000 CP Amer Exp 11/08/99 5.270 50,000 CP Assoc 11/08/99 5.270 50,000 CP Assoc 11/08/99 5.270 50,000 CP Amer Exp 11/09/99 5.270 50,000 CP Amer Exp 11/09/99 5,270 50,000 CP ConAgra 11/10/99 5.470 23,885 CP Assoc 11/10/99 5.270 50,000 CP Assoc 11/10/99 5.270 50,000 11 POOLED MONEY,INVESTMENT AC . NT 8/ d/ MATURITY TRANS. - PAR, , _-DAYS :AMOUNT, EFFECTIVE; . DATE DESCRIPTION - -� _ --__ ._ . ._DAB_ .._YIELB_, 10/28/99 PURCHASES 4/ Disc Notes FHLMC 01/20/00 5.350 7,870 Disc Notes FNMA 01/26/00 5.350 50,000 Disc Notes FNMA 01/26/00 5.350 50,000 Disc Notes FNMA 03/10/00 5.350 50,000 Disc Notes FNMA 03/10/00 -5.350 50,000 I 10/29/99 REDEMPTIONS s CP GMAC 10/29/99 5.310 50,000 73 538,375.00 5.442 CP GMAC 10/29/99 5.310 50,000 73 538,375.00 5.442 SALES Sd Disc Notes FHLMC 01/20/00 5.350 7,870 1 1,128.85 5.424 Disc Notes FNMA 01/26/00 5.350 50,000 1 7,171.08 5.424 Disc Notes FNMA 01/26/00 5.350 50,000 1 7,171.08 5.424 Disc Notes FNMA 03/10/00 5.350 50,000 1 7,125.61 5.424 Disc Notes FNMA 03/10/00 5.350 50,000 1 7,125.61 5.424 PURCHASES BN B/A 6.010% 03/29/00 6.010 50,000 BN B/A 6.010% 03/29/00 6.010 50,000 CP Assoc 11/01/99 5.330 50,000 CP Assoc 11/01/99 5.330 50,000 CP Assoc 11/01/99 5.330 50,000 CP GMAC 11/01/99 5.330 50,000 CP GMAC 11/01/99 5.330 50,000 CP Household 01/10/00 6.020 50,000 CP Household 01/10/00 6.020 50,000 CP Morg Stan 01/10/00 6.100 50,000 CP Morg Stan 01/10/00 6.100 50,000 CP GECC 03/27/00 5.880 30,000 CP GECC 03/27/00 5.880 50,000 �f 12 al The abbreviations indicate the type of security purchased or sold; i.e., (U.S.)Bills, Bonds,Notes, Debentures, Discount Notes, and Participation Certificates: Federal National Mortgage Association (FNMA),Farmers Home Administration Notes (FHA), Student Loan Marketing Association(SLMA), Small Business Association (SBA), Negotiable Certificates of Deposit(CD),Negotiable Certificates of Deposit Floating Rate(CD FR),Export Import Notes (E)UM), Bankers Acceptances(BA), Commercial Paper(CP),Government ` National Mortgage Association(GNMA), Federal Home Loan Bank Notes (FHLB),Federal Land Bank Bonds (FLB),Federal Home Loan Mortgage Corporation Obligation(FHLMC PC) & (FHLMC GMC), Federal Farm Credit Bank Bonds(FFCB),Federal Farm Credit Discount Notes (FFC),Corporate Securities (CB),U.S. Ship Financing Bonds (TITLE XPS), International Bank of Redevelopment(IBRD), Tennessee Valley Authority (TVA) Medium Tenn Notes(MTN). h/ Purchase or sale yield based on 360 day calculation for discount obligations and Repurchase Agreements. g/ Repurchase Agreement. dJ Par amount of securites purchased, sold, or redeemed. J Securities were purchased and sold as of the same date. f/ Repurchase Agreement against Reverse Repurchase Agreement. g/ Outright purchase against Reverse Repurchase Agreement. hl Security"SWAP"transactions. y Buy back agreement. RRS Reverse Repurchase Agreement. RRP Termination of Reverse Repurchase Agreement. 13 TIME DEPOSIT NAME DEPOSIT DATE YIELD PAR AMOUNT M MATURITY DATE AGOURA HILLS Pacific Crest Bank 10/12/99 5.180 5,000,000.00 04/17/00 Pacific Crest Bank 10/12/99 5.390 5,000,000.00 10/16/00 ALHAMBRA East West Bank 08/17/99 4.740 38,000,000.00 11/15/99 East West Bank 10/07/99 4.830 35,000,000.00 01/14/00 East West Bank 10/14/99 4.960 8,000,000.00 01/21/00 East West Bank 07/16/99 4.710 27,000,000.00 01/21/00 Grand National Bank 09/08/99 4.910 3,000,000.00 12/07/99 Grand National Bank 10/15/99 4.960 1,000,000.00 01/14/00 Grand National Bank 07/16/99 4.730 2,000,000.00 01/14/00 Grand National Bank 09/20/99 4.830 3,095,000.00 01/20/00 Grand National Bank 08/13/99 5.140 3,000,000.00 02/07/00 BEVERLY HILLS City National Bank 05/19/99 4.820 20,000,000.00 02/28/00 City National Bank 03/31/99 4.740 50,000,000.00 03/31/00 City National Bank 05/04/99 4.820 25,000,000.00 05/03/00 City National Bank 07/27/99 5.040 10,000,000.00 07/26/00 City National Bank 09/15/99 5.280 20,000,000.00 09/15/00 City National Bank 10/12/99 5.360 25,000,000.00 10/16/00 CAMERON PARK Roseville First National Bank 07/26/99 4.740 1,000,000.00 01/24/00 Western Sierra National Bank 08/04/99 4.970 3,000,000.00 11/05/99 CHICO j North State National Bank 04/06/99 4.730 1,000,000.00 04/06/00 North State National Bank 10/04/99 5.020 1,000,000.00 04/07/00 li North State National Bank 08/24/99 5.210 1,000,000.00 08/24/00 North State National Bank 09/07/99 5.240 500,000.00 09/01/00 North State National Bank 08/30/99 5.160 1,000,000.00 09/01/00 Tri Counties Bank 09/09/99 4.920 10,000,000.00 12/09/99 Tri Counties Bank 09/16/99 4.860 10,000,000.00 12/16/99 Tri Counties Bank 09/21/99 4.730 10,000,000.00 12/21/99 Tri Counties Bank 07/14/99 4.740 10,000,000.00 01/11/00 14 TIME DEPOSIT NAME DEPOSIT DATE YIELD PAR AMOUNT(31 MATURITY DATE CITY OF INDUSTRY EverTrust Bank 09/14/99 4.760 1,000,000.00 12/13/99 EverTrust Bank 09/22/99 4.670 2,000,000.00 12/21/99 EL CENTRO Valley Independent Bank 08/11/99 5.150 3,750,000.00 02/07/00 Valley Independent Bank 08/11/99 5.250 3,750,000.00 08/11/00 FRESNO United Security Bank 08/20/99 5.090 10,000,000.00 02/16/00 INGLEWOOD Imperial Bank 10/14/99 5.190 20,000,000.00 04/13/00 Imperial Bank 10/21/99 5.290 25,000,000.00 05/25/00 Imperial Bank 10/28/99 5.450 20,000,000.00 06/22/00 Imperial Bank 05/19/99 4.860 25,000,000.00 11/18/99 Imperial Bank 06/28/99 5.100 25,000,000.00 12/22/99 Imperial Bank 09/16/99 4.970 25,000,000.00 01/27/00 Imperial Bank 07/15/99 4.800 50,000,000.00 02/03/00 Imperial Bank 09/23/99 5.050 18,000,000.00 02/24/00 Imperial Bank 08/23/99 5.040 25,000,000.00 03/02/00 Imperial Bank 09/09/99 5.220 25,000,000.00 03/09/00 Imperial Bank 07/29/99 4.840 18,000,000.00 03/30/00 Imperial Bank 08/12/99 5.100 26,000,000.00 04/27/00 LM 1 Bank of Lodi 09/16/99 4.860 1,000,000.00 12/15/99 Bank of Lodi 10/08/99 5.110 2,000,000.00 04/10/00 LOS ANGELES Broadway Federal Bank 07/01/99 5.160 1,250,000.00 12/28/99 Broadway Federal Bank 07/01/99 5.200 1,250,000.00 06/30/00 Broadway Federal Bank 09/29/99 5.230 2,500,000.00 10/02/00 15 TIME DEPOSIT NAME DEPOSIT DATE YIELD PAR AMOUNT (S) MATURITY DATE LOS ANGELES (cont.) Community Bank 06/10/99 5.000 5,000,000.00 12/07/99 Community Bank 06/14/99 5.070 10,000,000.00 12/13/99 Community Bank 07/13/99 4.750 20,000,000.00 01/10/00 Community Bank 06/22/99 5.030 5,000,000.00 06/22/00 Community Bank 08/11/99 5.230 15,000,000.00 08/11/00 Community Bank 10/25/99 5.490 5,000,000.00 10/27100 Founders National Bank of L.A. 06/17/99 5.020 95,000.00 12/14/99 General Bank 10/12/99 4.590 10,000,000.00 11/12/99 General Bank 07/20/99 4.680 7,000,000.00 01/21/00 General Bank 10/25/99 5.130 28,000,000,00 01/24/00 General Bank 07/27/99 4.730 15,000,000.00 02/02/00 General Bank 08/03/99 4.900 15,000,000.00 02/14/00 General Bank 08/13/99 5.110 25,000,000.00 03/10/00 Manufacturers Bank 08/11/99 4.900 10,000,000.00 11/09/99 Manufacturers Bank 09/07/99 4.970 10,000,000.00 12/06/99 Preferred Bank 08/18/99 4.840 4,000,000.00 11/16/99 Preferred Bank 08/26/99 4.970 2,000,000.00 11/30/99 Preferred Bank 09/03/99 4.940 5,000,000.00 12/03/99 Preferred Bank 09/16199 4.820 9,000,000.00 12115199 Preferred Bank 09/20/99 4.710 9,000,000.00 12/20/99 Preferred Bank 09/28/99 4.820 3,000,000.00 01/04/00 Preferred Bank 07/16/99 4.700 3,000,000.00 01/18/00 Wilshire State Bank 08/31/99 5.290 4,000,000.00 08/31/00 OAKDALE Oak Valley Community Bank 03/30/99 4.630 1,000,000.00 01/31/00 Oak Valley Community Bank 09/20199 5.070 1,000,000.00 03/24/00 Oak Valley Community Bank 03/30/99 4.750 1,000,000.00 03/31/00 Oak Valley Community Bank 05/06/99 4.830 500,000.00 05/22/00 Oak Valley Community Bank 08/10/99 5.220 500,000.00 08/09/00 Oak Valley Community Bank 09/27/99 5.190 500,000.00 09/29/00 ONTARIO Citizens Business Bank 03/09/99 4.850 5,000,000.00 03/08/00 Citizens Business Bank 03/23/99 4.780 10,000,000,00 03/22/00 Citizens Business Bank 04/07/99 4.720 10,000,000.00 04/06/00 Citizens Business Bank 08/23/99 4.970 20,000,000,00 05/25/00 Citizens Business Bank 06/16/99 5.150 10,000,000.00 06/15/00 Citizens Business Bank 07/07/99 5.100 5,000,000,00 07/06/00 Citizens Business Bank 08/10/99 5.220 10,000,000.00 08/09/00 16 TIME DEPOSIT NAME DEPOSIT DATE YIELD PAR AMOUNT ISl MATURITY DATE PALO ALTO Bay Area Bank 10/08/99 5.140 5,000,000.00 04/17/00 Cupertino National Bank 08/06/99 4.980 10,000,000.00 02/04/00 Cupertino National Bank 08/30/99 5.120 10,000,000.00 02/25/00 Cupertino National Bank 10/19/99 5.090 10,000,000.00 03/22/00 Mid-Peninsula Bank 08/06/99 4.980 15,000,000.00 02/04/00 Mid-Peninsula Bank 08/30/99 5.120 10,000,000.00 02/25/00 Mid-Peninsula Bank 03/10/99, 5.180 10,000,000.00 03/08/00 POMONA PFF Bank and Trust 05/25/99 4.900 8,000,000.00 11/30/99 PFF Bank and Trust 09/08/99 5.600 10,000,000.00 03/10/00 PETALUMA Bank of Petaluma 08/10/99 5.140 1,000,000.00 02/07/00 REDDING North Valley Bank 03/23/99 4.780 3,000,000.00 03/22/00 RICHMOND Mechanics Bank 03/08/99 4.840 10,000,000.00 03/07/00 Mechanics Bank 04/05/99 4.740 10,000,000.00 04/04/00 Mechanics Bank 05/06/99 4.810 10,000,000.00 05/05/00 Mechanics Bank 06/11/99 5.150 10,000,000.00 06/12/00 Mechanics Bank 08/12/99 5.250 10,000,000.00 08/11/00 Mechanics Bank 10/07/99 5.330 10,000,000.00 10/13/00 SACRAMENTO American River Bank 09/29/99 4.990 1,000,000.00 04/03/00 Bank of Sacramento 09/02/99 5.060 500,000.00 12/03/99 River City Bank 07/13/99 4.780 5,000,000.00 01/10/00 River City Bank 07/30/99 4.870 5,000,000.00 01/31/00 River City Bank 08/18/99 5.210 5,000,000.00 08/18/00 Sanwa Bank of California 08/03/99 4.900 7,000,000.00 02/07/00 Sanwa Bank of California 07/15/99 5.000 10,000,000.00 07/14/00 Sanwa Bank of California 07/27/99 5.010 5,000,000.00 07/26/00 17 TIME DEPOSIT NAME DEPOSIT DATE YIELD PAR AMOUNT f$1 MATURITY DATE SACRAMENTO(cont.) Sanwa Bank of California 08/16/99 5.190 50,000,000.00 08/15/00 Sanwa Bank of California 08/23/99 5.180 10,000,000.00 08/22/00 Union Bank of California 08/03/99 4.740 100,000,000.00 11/02/99 Union Bank of California 08/17/99 4.730 50,000,000.00 11/16/99 Union Bank of California 10/27/99 5.150 50,000,000.00 01/25/00 Union Bank of California 08/26/99 5.160 100,000,000.00 02/23/00 Union Bank of California 09/28/99 5.040 100,000,000.00 03/28/00 SALINAS Bank of Salinas 07/22/99 4.680 8,000,000.00 01/26/00 Bank of Salinas 09/16/99 4.930 12,000,000.00 01/27/00 SAN DIEGO San Diego First Bank 06/01/99 4.840 1,500,000.00 11/30/99 San Diego First Bank 06/22/99 5.030 1,500,000.00 06/21/00 San Diego First Bank 08/04/99 5.150 1,000,000.00 08/07/00 SAN FRANCISCO Bank of Canton California 05/06/99 4.810 5,000,000.00 05/05/00 Bank of Canton California 05/13/99 4.780 5,000,000.00 05/12/00 Bank of Canton California 06/01/99 5.000 5,000,000.00 05/31/00 Bank of Canton California 06/02/99 5.000 5,000,000.00 05/31/00 Bank of Canton California 07/21/99 4.950 5,000,000.00 07/21/00 Bank of Canton California 09/01/99 5.280 5,000,000.00 09/01/00 Bank of Canton California 09/13/99 5.290 5,000,000.00 09/13/00 Bank of the West 07/07/99 4.990 34,000,000.00 01/05/00 Bank of the West 07/13/99 4.770 25,000,000.00 01/12/00 Bank of the West 07/13/99 4.770 25,000,000.00 01/12/00 Bank of the West 07/21/99 4.680 25,000,000.00 01/31/00 i Bank of the West 06/08/99 4.820 25,000,000.00 02/16/00 Bank of the West 04/29/99 4.760 51,500,000.00 04/29/00 Bank of the West 08/27/99 4.960 25,000,000.00 05/25/00 Bank of the West 05/19/99 4.890 30,000,000.00 05/25/00 Bank of the West 05/26/99 4.860 87,000,000.00 05/25/00 California Federal Bank 09/27/99 4.840 3,000,000.00 01/05/00 California Federal Bank 10/04/99 4.890 5,000,000.00 01/05/00 California Federal Bank 07/16/99 4.720 100,000,000.00 01/18/00 18 • • j TIME DEPOSIT NAME DEPOSIT DATE YIELD PAR AMOUNT(S) MATURITY DATE SAN FRANCISCO (cont.l Millennium Bank 10/27/99 5.390 2,000,000.00 05/01/00 Oceanic Bank 03/05/99 4.920 2,000,000.00 03/07/00 Oceanic Bank 03/12/99 4.780 2,000,000.00 03/15/00 Trans Pacific National Bank 09/13/99 5.260 800,000.00 03/17/00 United Commercial Bank 08/13/99 5.150 20,000,000.00 02/11/00 United Commercial Bank 10/04/99 5.030 20,000,000.00 04/05/00 United Commercial Bank 09/20/99 5.100 20,000,000.00 04/27/00 United Commercial Bank 09/03/99 5.310 20,000,000.00 09/01/00 United Commercial Bank 10/07/99 5.360 10,000,000.00 10/13/00 SAN JOSE San Jose National Bank 07/12/99 5.010 5,000,000.00 07/11/00 SAN LEANDRO Bay Bank of Commerce 10/07/99 4.84 5,000,000.00 01/13/00 SAN LUIS OBISPO First Bank of San Luis Obispo 08/02/99 4.750 3,600,000.00 11/03/99 First Bank of San Luis Obispo 08/10/99 4.880 2,000,000.00 11/08/99 First Bank of San Luis Obispo 08/24/99 4.930 2,500,000.00 11/22/99 First Bank of San Luis Obispo 10/04/99 4.890 1,000,000.00 01/14/00 First Bank of San Luis Obispo 10/27/99 5.180 1,000,000.00 01/25/00 San Luis Trust Bank 09/23/99 4.850 350,000.00 01/13/00 San Luis Trust Bank 10/27/99 5.170 1,000,000.00 01/31/00 SAN RAFAEL Westamerica Bank 08/13/99 4.860 50,000,000.00 11/15/99 ! Westamerica Bank 07/13/99 4.770 25,000,000.00 01/12/00 Westamerica Bank 07/21/99 4.680 25,000,000.00 01/27/00 Westamerica Bank 07/20/99 4.680 25,000,000.00 01/31/00 Westamerica Bank 07/27/99 4.770 25,000,000.00 01/31/00 19 TIME DEPOSIT NAME DEPOSIT DATE YIELD PAR AMOUNT fS) MATURITY DATE SANTA BARBARA FNB of Central California 08/11/99 5.140 5,000,000.00 02/07/00 FNB of Central California 10/01/99 5.000 5,000,000.00 03/31/00 Santa Barbara Bank&Trust 07/08/99 4.760 5,000,000.00 01/07/00 Santa Barbara Bank&Trust 07/16/99 4.740 5,000,000.00 01/14/00 Santa Barbara Bank&Trust 07/19/99 4.740 5,000,000.00 01/21/00 Santa Barbara Bank&Trust 08/13/99 5.150 5,000,000.00 02/11/00 Santa Barbara Bank&Trust 08/31/99 5.200 5,000,000.00 03/03/00 Santa Barbara Bank&Trust 09/13/99 5.180 5,000,000.00 03/17/00 Santa Barbara Bank&Trust 10/04/99 5.010 5,000,000.00 04/07/00 Santa Barbara Bank&Trust 10/08/99 5.110 5,000,000.00 04/17/00 SANTA CLARITA Valencia Bank&Trust 9/23/99 5.28 1,000,000.00 9/22/00 SANTA CRUZ Coast Commercial Bank 09/15/99 4.820 20,000,000.00 12/14/99 SARATOGA Saratoga National Bank 06/22/99 5.100 1,750,000.00 06/30/00 Saratoga National Bank 10/01/99 5.150 5,000,000.00 06/30/00 STOCKTON Union Safe Deposit Bank 10/15/99 4.990 10,000,000.00 01/14/00 Union Safe Deposit Bank 08/16/99 5.140 10,000,000.00 02/15/00 Washington Mutual Bank 09/17/99 5.260 15,000,000.00 09/15/00 Washington Mutual Bank 10/13/99 5.370 15,000,000.00 10/27/00 it TORRANCE China Trust Bank(USA) 08/16/99 4.810 5,000,000.00 11/15/99 China Trust Bank(USA) 09/07/99 4.950 10,000,000.00 12/06/99 China Trust Bank(USA) 09/15/99 4.860 10,000,000.00 12/10/99 China Trust Bank(USA) 09/20/99 4.730 5,000,000.00 12/17/99 China Trust Bank(USA) 09/27/99 4.840 10,000,000.00 01/05/00 China Trust Bank(USA) 10/25/99 5.130 15,000,000.00 01/24/00 South Bay Bank 05/06/99 4.780 2,000,000.00 11/02/99 South Bay Bank 06/15/99 5.140 2,000,000.00 12/13/99 South Bay Bank 07/21/99 4.750 1,000,000.00 01/31/00 20 TIME DEPOSIT NAME DEPOSIT DATE YIELD PARAMOUNT(S) MATURITY DATE TUSTIN First Fidelity Thrift& Loan 10/18/99 5.090 5,000,000.00 01/18/00 First Fidelity Thrift& Loan 10/25/99 5.120 4,000,000.00 01/28/00 Sunwest Bank 10/12/99 4.870 3,500,000.00 01/11/00 Sunwest Bank 10/07/99 4.830 3,300,000.00 01/13/00 Sunwest Bank 07/20/99 4.680 1,000,000.00 01/21/00 Sunwest Bank 10/08/99 4.830 4,000,000.00 01/21/00 Sunwest Bank 09/10/99 5.170 1,000,000.00 03/08/00 TOTAL TIME DEPOSITS AS OF OCTOBER 31, 1999 2,575,490,000.00 I 21 •BANK DEMAND DEPOSITS• OCTOBER 1999 ($ in thousands) DAY OF BALANCES WARRANTS MONTH PER BANKS OUTSTANDING 1 $ 429,666 $ 2,517,985 2 429,666 2,517,985 3 429,666 2,517,985 4 482,236 2,235,238 5 209,146 2,140,174 6 224,230 1,900,800 7 131,870 1,646,324 8 179,795 1,710,755 9 179,795 1,710,755 10 179,795 1,710,755 11 179,795 1,710,755 12 82,072 1,568,278 13 307,814 1,515,454 14 98,861 1,295,853 15 437,968 1,301,690 16 437,968 1,309,934 17 437,968 1,309,934 18 587,077 1,369,454 19 321,562 1,456,686 20 253,287 1,407,956 21 451,673. 1,331,369 22 124,250 1,251,278 23 124,250 1,251,278 24 124,250 1,251,278 25 182,774 1,110,114 26 346,390 1,132,331 27 223,341 1,034,271 28 430,951 1,258,220 29 419,067 1,086,553 30 419,067 1,086,553 31 419,067 1,227,341 AVERAGE DOLLAR DAYS $ 299,526 The prescribed bank balance for October was$344,628.This consisted of $195,877 in compensating balances for services, balances for uncollected funds of$148,751 and a deduction of$15,951 for September delayed deposit credit. 22 DES ATION BY POOLED MONEY INVESTMENT BO OF TRqWRY POOLED MONEY INVESTMENTS AND DEqW No. 1604 In accordance with sections 16480 through 16480.8 of the Government Code,the Pooled Money Investment Board,at its meeting on October 20, 1999,has determined and designated the amount of money available for deposit and investment under said sections. In accordance with sections 16480.1 and 16480.2 of the Government Code,it is the intent that the money available for deposit or investment be deposited in bank accounts and savings and loan associations or invested in securities in such a manner so as to realize the maximum return consistent with safe and prudent treasury management, and the Board does hereby designate the amount of money available for deposit in bank accounts,savings and ban associ- ations,and for investment in securities and the type of such deposits and investments as follows: 1. In accordance with law,for deposit in demand bank accounts as Compensating Balance for Services $208,462,000 The active noninterest-bearing bank accounts designation constitutes a calendar month average balance. For purposes of computing the compensating balances,the Treasurer shall exclude from the daily balances any amounts contained therein as a result of nondelivery of securities purchased for"cash"for the Pooled Money Investment Account and shall adjust for any deposits not credited by the bank as of the date of deposit. The balances in such accounts may fall below the above amount provided that the balances computed by dividing the sum of daily balances of that calendar month by the number of days in the calendar month reasonably approximates that amount. The balances may exceed this amount during heavy collection periods or in anticipation of large impending warrant presentations to the Treasury,but the balances are to be maintained in such a manner as to realize the maximum return consistent with said and prudent treasury management. 2. In accordance with taw,for investment insecurities authorized by section 16430,Government Code,or in term interest- bearing deposits in banks and savings and loan associations as follows: Time Deposits in _ various Financial Institutions In Securities (sections 16503a Estimated From To Transactions (section 16430)' and 16602)" Total (1) 10/18/99 10/22/99 $ 833,600,000 $ 30,939,110,000 $ 2,575,490,000 $ 33,514,600,000 (2) 10/25/99 10/29/99 $ (606,500,000) $ 30,332,610,000 $ 2,575,490,000 - $ 32,908,100,000 (3) 11/01/99 11/05/99 $ 2,039,500,000 $ 32,372,110,000 $ 2,575,490,000 - $ 34,947,600,000 (4) 11/08/99 11/12/99 $ 47.700,000 $ 32,419,810,000 $ 2,575,490,000 $ 34,995,300,000 (5) 11/15/99 11/19/99 $ 838,700,000 $ 33,258,510,000 $ 2,575.490,000 $ 35,834,000,000 (6) 11/22/99 11/26/99 .$ (717,200,000) $ 32,541,310,000 $ 2,575,490,000 - $ 35,116,800,000 (7) 11/29/99 12/03/99 $ (272,200,000) $ 32,269,110,000 $ 2,575,490,000 $ 34,844,600,000 (8) 12106/99 12/10/99 $ 83,000,000 $ 32,352,110,000 $ 2,575,490,000 $ 34,927,600,000 (9) 12/13/99 12/17/99 $ 2,361,300,000 $ 34,713,410,000 $ 2,575,490,000 $ 37,288,900,000 From any of the amounts specifically designated above,not more than 30 percent in the aggregate may be invested in prime commercial paper under section 16430(e),Government Code. Additional amounts available in treasury trust account and in the Treasury from time to time,in excess of the amounts and for the same types of investments as specifically designated above. Provided,that the availability of the amounts shown under paragraph 2 is subject to reduction in the amount by which the bank accounts under paragraph 1 would otherwise be reduced below the calendar month average balance of $208,462,000. POOLED MONEY INVE MENT BOARD: c_ �tha �er o rf ember Dated: October 20, 1999 Cal 'Government Code Member 23