SR - - REPORTS FOR APRIL MAY JUNE 20161. SUBJECT
MONTHLY TREASURER'S REPORTS FOR APRIL, MAY, AND JUNE 2016.
2. SUMMARY
Presentation of three monthly Treasurer's Reports to the City Council after the end of the quarter
covered by the reports.
3. RECOMMENDED ACTION
Receive and file.
4. FISCAL IMPACT
No fiscal impact as a result of this action.
5. STRATEGIC PLAN GOAL(S)
2d. Be a Fiscally Healthy Community — Effectively manage and develop City assets.
6. GENERAL PLAN IMPLEMENTATION
N/A
7. DISCUSSION and BACKGROUND
The City's current Statement of Investment Policy has been adopted by the City Council of the
City of Orange as Resolution 10866 and is in accordance with the California Government Code
Sections 53600 ET Seq. Per the Investment Policy, three monthly investment reports are to be
submitted to the City Council within 45 days following the end of the quarter.
As required by the City's present Investment Policy, the City Treasurer's report delineates all
investments made by the City Treasurer for the City, its special funds, and the Successor Agency
funds, by investment type and by broker.
The monthly Compliance Report certifying compliance of all investments with both the
Government Code and the City's Investment Policy is included.
The Investment Portfolio Statement accurately reflects all investments held by the City and its
agents as of the end of the month. This investment data is also presented in other summary and
graphic form. A reconciliation between total cash and investments and total cash per the General
Ledger is also included.
SUMMARY OF CHANGES IN TREASURER'S CASH AND INVESTMENTS
Treasurer's Operating
Cash & Investments
Balance @ 3/31/2016 $144,004,401
Monthly Activity:
Cash Received 53,414,735
Cash Disbursed ( 34,700,018)
Balance @ 6/30/2016 $162,719,118
( ' ) Includes operating cash and investments (valued at cost). Does not include deposits with
administrators, imprest cash, fiscal agent cash and investments, and deferred compensation.
For the month of April 2016
The April cash receipts exceeded cash disbursements by $6,998,530. The City received
$8,739,325 in property tax revenue and $2,697,100 in sales tax revenue. During the month, large
disbursements included payments totaling $2,239,621 to PERS for employee benefits, $699,584
to R.J. Noble for annual pavement maintenance, $547,412 to Cora Construction for well
equipping, and $512,959 to All American Asphalt for street and sewer improvements.
In the month of April, the City purchased two Federal National Mortgage Association Notes
(1.45% for 4 years and 1.4% for 3.5 years). One U.S. Treasury matured. The City's balance in
L.A.I.F. on April 30 was $22,300,000 or an increase of $800,000 due to cash receipts exceeding
cash disbursements and the investment activity during the month.
For the month of May 2016
The May cash receipts exceeded cash the City purchased disbursements by $7,349,741. During
the month, the City received $5,947,379 in motor vehicle license fees, $4,867,791 in sales tax
revenue, and $786,627 in property tax revenue. Large disbursements included payments totaling
$2,254,813 to PERS for employee benefits, $259,405 to LPA for the Metrolink Parking Structure,
and $229,034 to Cora Construction for well equipping.
In the month of May, the City purchased three Federal National Mortgage Association Notes
(1.75% for 5 years, 1.5% for 4.5 years, and 1.5% for 3.75 years). Three Federal National Mortgage
Association Notes and one Federal Home Loan Mortgage Corporation Note were called. The
City's balance in L.A.I.F. on May 31 was $27,000,000 or an increase of $4,700,000 due to cash
receipts exceeding cash disbursements and the investment activity during the month.
For the month of June 2016
The June cash receipts exceeded cash disbursements by $4,366,446. The City received $7,091,320
in property tax revenue ($6,078,970 as property tax increment collected for the Successor Agency
and $1,012,350 for the City) and $3,104,917 in sales tax revenue. Large disbursements included
payments totaling $2,298,632 to PERS for employee benefits and $273,428 to Municipal Water
District of Orange County for purchased water.
In the month of June, we purchased one Federal Farm Credit Bank Note (1.36% for 3.65 years).
One commercial paper matured. The City's balance in L.A.I.F. on June 30 was $42,200,000 or an
increase of $15,200,000 due to the investment activity and cash receipts exceeding cash
disbursements during the month.
CREDIT RATING ON INVESTMENTS
During this period, there was no change to the credit rating on the investments in the investment
portfolio.
INVESTMENT ADVISORY COMMITTEE (IAC)
The most recent IAC meeting was May 12, 2016 while the next quarterly Committee meeting is
to be scheduled for August 10, 2016.
8. ATTACHMENTS
Attachment A - Investment Report for April 2016
Attachment B - Investment Report for May 2016
Attachment C - Investment Report for June 2016
CITY COUNCIL MINUTES AUGUST 9, 2016
3. CONSENT CALENDAR (Continued)
3.4 Treasurer's Reports for the months of April, May, and June 2016. (C2500.F)
ACTION: Received and filed.
AGREEMENTS
3.5 Agreement with California Waters Development, Inc. (California Waters) for
ongoing maintenance of City Fountains for a four -year Aggregate amount not to
exceed $70,317. (A2100.0; AGR -6373)
ACTION: Approved agreement with California Waters Development Inc., and authorized
the Mayor and City Clerk to execute on behalf of the City.
(ITEM REMOVED AND HEARD SEPARATELY)
3.6 Appropriation of $123,584 from General Fund Unreserved Fund Balance and Award
of four -year Agreement for Landscape Maintenance of City Parks and Recreation
Trails, Proposal No. 156 -37, to Merchants Landscape, Inc. in the aggregate not -to-
exceed amount of $2,993,600. A2100.0; AGR -6375)
City Manager Rick Otto clarified that this was a four -year agreement for landscape services
for 20 of the City's improved parks including Santiago Creek Trail.
MOTION — Smith
SECOND — Murphy
AYES — Alvarez, Whitaker, Smith, Murphy, Nichols
Moved to: 1) Authorize the appropriation of $123,584 from General Fund 100 unreserved
fund balance to expenditure account 100.7022.51420.00000 (Maintenance Contracts); and
2) Approve agreement with Merchants Landscape Inc. and authorize the Mayor and City
Clerk to execute on behalf of the City.
3.7 Agreement with Stantec Consulting Service, Inc. for professional services for the UCI
Medical Center (UCIMC) Master Meter Program in an amount not -to- exceed
$94,660. (A2100.0; AGR -6374)
ACTION: Awarded Consultant Services Agreement to Stantec Consulting Service, Inc. of
Irvine, CA, in an amount not to exceed $94,660; and authorized the Mayor and City Clerk
to execute the necessary documents on behalf of the City.
3.8 A Consultant Services Agreement with CSG Consultants, Inc., a Private Consultant
Firm, to Provide Plan Review and Field Inspection Services for the Building Division
of the Community Development Department. (A2100.0; AGR- 3375.L)
ACTION: Approved and authorized the Mayor and City Clerk to execute a consultant
services agreement with CSG Consultants, Inc., with the total compensation not to exceed
$80,000.
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