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HomeMy WebLinkAbout17 - Council Policy Manual Update for 2003 & Consideration of Policy F-1CITY OF NEWPORT BEACH CITY COUNCIL STAFF REPORT Agenda Item No. 17 April 8, 2003 TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: City Manager's Office Dave Kiff, Assistant City Manager Shirley Oborny, Administrative Assistant 949/644 -3002 or dkiff @city.newport - beach.ca.us SUBJECT: Council Policy Manual Update for 2003 and Public Meeting to Consider City's Statement of Investment Policy (Policy F -1) RECOMMENDATION: Approve the proposed revisions or additions to the Council Policy Manual: Revisions to F -1, F -2, F -3, F -20, 1 -1, 1 -2, 1 -3, 1 -4, 1 -5, 1 -13, 1 -14, 1 -15, 1 -16, 1 -17, 1 -18, 1 -19, 1 -20, 1 -21, 1 -22, 1 -23, 1 -24, 1 -25, 1 -26, 1 -27, 1 -28, L -16, L -20 and; Addition of I -13. DISCUSSION: This agenda item contains two parts: Part I — The annual review of the City Council's Council Policy Manual (with recommended changes to or additions of 34 separate policies); and Part II — The annual affirmation of the City's Statement of Investment Policy (Council Policy F -1) as required by California law. Part I -- Policy Manual Review. Council Policy D -3 directs the City Council to review the more than 100 policies in the Council Policy Manual annually. These policies exist to instruct the Council and City staff on how to process a variety of different issues -- from airport and annexations to voice mail and water service outside the City limits. This year, the 35 policies proposed for change or for addition are summarized in Attachment A. Many of the proposed changes are minor and are NOT all summarized below. Noteworthy changes include the following: Council Policy Manual Update for 2003 April 8, 2003 Page 2 Statement of Investment Policy (F-1) The Administrative Services Director recommends specific changes to F -1 that reflects his recommendations and that of the City's financial advisors as well as updates for code changes and new or modified types of securities. Reserves /Designation of Fund Balance (F -2) The Administrative Services Director recommends specific changes to F -2 that provide a more comprehensive and descriptive breakout of the various monies being set aside for special purposes by the City. Budget Adoption and Administration (F -3) The Administrative Services Director recommends specific changes to F -3; a couple of textual format clarifications, and one procedural change that would simplify City Council action regarding acceptance and appropriation of many Grant Revenues from a two step process to a one step process. Contracts with Former City Employees (F -20) This policy requires that that City Council approve all contracts with former City employees, but it sets no time threshold at which City department heads or the City Manager could hire the former employee instead of taking the item before City Council. As such, an employee who has left the City 15, 18, or 20 years prior still must go before the City Council for formal approval. We propose setting a 5 -year threshold for this requirement. Policy Manual Section I (and subsections 1, 2, 3. 4, 5, 6, 7. 8. 9. 11, 23, 24, 25, 26. 27, and 28 The Recreation and Senior Services Director recommends separating the above policy subsections from the remaining Policy I subsections that pertain to either the Library or Arts and Cultural Services. At the July 23, 2002, City Council meeting, the City Council approved the recommendation to restructure the Community Services Department into two separate departments, Library Services and Recreation and Senior Services. As such, the above - referenced Policy I subsections that refer to recreation activities should be moved to the vacant Policy Section B as follows: Current Reassianed to 1 -1 B -1 1 -2 B -2 1 -3 B -3 1-4 B-4 1 -5 B -5 1 -6 B -6 1 -7 B -7 1 -8 B -8 1 -9 B -9 Council Policy Manual Update for 2003 April 8, 2003 Page 3 Current Reassigned to 1 -11 B -10 1 -23 B -11 1 -24 B -12 1 -25 B -13 1 -26 B -14 1 -27 B -15 1 -28 B -16 In addition to reassigning the above policy subsections, the terms "Community Services Director" or "Community Services Department" have been changed to either "Recreation and Senior Services Director" or "Recreation and Senior Services Department" in Subsections 1 -6, 1 -7, 1 -11, 1 -25 and 1 -26. Policv Manual Section I (and subsections 10. 12. 13, 14. 15. 16. 17, 18. 19. 20. 21, and In correlation to the Policy I discussion above, the Library Director recommends keeping the remaining policy subsections in Section I but reassigning them by order of priority as follows: Current Reassigned to 1 -10 1 -12 1 -12 1 -10 1 -13 1 -11 1 -14 1 -1 1 -15 1 -2 1 -16 1 -3 1 -17 1 -4 1 -18 1 -9 1 -19 1 -5 1 -20 1 -6 1 -21 1 -7 1 -22 1 -8 In addition to reassigning the above policy subsections, the terms "Community Services Department" or "Community Services Director' have been changed to either "Library Services Department" or "Library Services Director' in Subsection 1 -21. Donation of Art to the Citv of Newoort Beach (1 -13. to be reassigned to 1 -11) The Arts and Cultural Coordinator recommends a new version of this policy. Several revisions of this policy have been approved by the Arts Commission but have never been submitted to the City Council for approval. The new version rewrites the policy in an outline format as well as provides criteria in which the Arts Commission should use in making recommendations for accepting a donation of art. Council Policy Manual Update for 2003 April 8, 2003 Page 4 Art in Public Places (1 -18, to be reassigned to 1 -19) The Arts and Cultural Coordinator recommends the new version of this policy. Several revisions of this policy have also been approved by the Arts Commission but never submitted to City Council for approval. The new version rewrites the policy in an outline format and provides criteria in which the Arts Commission should use in making recommendations for Art in Public Places projects. Library Policy for Use of Library Grounds (to be assigned as 1 -13) This is a NEW policy. At their March 18, 2003, meeting the Board of Library Trustees voted to allow only the Library and Library support groups to hang banners on the front of the Central Library building. The original policy did not include any comments on the use of banners on the front of the building and a request had been received. Discussion of the issue included concern that frequent use of the Library as an advertising space would destroy the architectural integrity of the building and dilute its identity as a library. The use of the Library in this manner would also create conflicts over issues of priority and fairness to all applicants, require development of policies on what could and could not be used, require review sessions for each request and reduce the effectiveness of the banners used by the Library support groups. Water Services Outside the City (L -16) As a result of the Utilities Division becoming the "Utilities Department" in July 2001, the Utilities Director recommends changing throughout the policy the terms "Public Works Director" or "Public Works Department" to "Utilities Director" or "Utilities Department ". Water Rates (L -20) The Utilities Director recommends removing the information in Section B and referring the reader to the section in F -2 that discusses Reserves /Designations of Fund balance because the information in Section B essentially says the same thing in the F -2 section. Part II -- Affirmation of City's Investment Policy. Following the County of Orange's bankruptcy in late 1994, the State Legislature adopted SB 564 (Johnston) which requires each local agency to consider its Statement of Investment Policy (the City Council's Policy F -1) annually at a public meeting. The law reads as follows: Government Code § 53646 -- (a) The treasurer or chief fiscal officer shall annually render to the legislative body of the local agency and any oversight committee a statement of investment policy, which the legislative body of the local agency shall consider at a public meeting. Any changes in the policy shall also be considered by the legislative body of the local agency at a public meeting. Council Policy Manual Update for 2003 April 8, 2003 Page 5 The Council's review of this policy at a public meeting (the April 8, 2003, City Council Meeting) completes this obligation. Prepared by: Assistant City Vager Shirley Obomy, Adminis rofive Assistant Attachments: A — Summary of Proposed Council Policy Changes B — Council Policies — Strikeout and Underline Versions (except 1 -13, which is new) \ § � k / Q k 2 ¢t a0 r 0!: o #£ ub« !I / \ } /c0 9 c z9 c -6 V t {§ ) \) /k) ) `� _/ - / \G). \ / !); *$ /9 . /! /fh! !;!l;rf;!! ;!! =r!!! ! { /v.6 $ !)« {!}) \i[ \)(]{�) \|(# G4 R _ !7 }1! ! � ���� x =( \ \\ #.���� : \ \ \ \\ ®\ \ \ \4L} ; ; ;;) } \ \\ } \ : /f® T !6 § 6 fE2 « G : \§: g EE { / /ƒ t / § \/; a 7 4 < \ / � / \ } /c0 9 c z9 c -6 V t {§ ) \) /k) ) `� _/ - / \G). \ / !); *$ /9 . /! /fh! !;!l;rf;!! ;!! =r!!! ! { /v.6 $ !)« {!}) \i[ \)(]{�) \|(# G4 R _ !7 }1! ! � ���� x =( \ \\ #.���� : : /f® / / EE / t a < \ / _> _E ; Q S !G !/ / u \ > // // \R ! 2 / \ } /c0 9 c z9 c -6 V t {§ ) \) /k) ) `� _/ - / \G). \ / !); *$ /9 . /! /fh! !;!l;rf;!! ;!! =r!!! ! { /v.6 $ !)« {!}) \i[ \)(]{�) \|(# G4 R _ !7 }1! ! � ���� x =( \ \\ #.���� : r co Q M O O N N d C1 C l0 L U m C l0 V u - a p m ao z 3 o ro Una a 2 v W C Z v Z ao� ¢a KC _ u wou c Tim cOd �W 6'SQmc v u J p LL LLN C Z N S C O N J N N LL w dG -Od �daw wN _ md� oyy O cq N d c W a E O 2 K 00 U 5 W O Q C m a `o 0 g °a d rc LL O O i3 nQ i� Yj i_ 3E� 3 rgppd �On _mm °o O On Sc � co a `ou °m m W o 4 Q M L 7 0 S E a c 0 o° °a a m u Y O q m o v c q 9 yU Fb " & q ba dg 5 v �U J a O 5 n & a @ o o v $-°Tc C aE0 2 O Z 0 s E w V E`v LL z 0 V u v m CL , \ ) S CM $ c § _ Q k � �t a§ Z �0- o ». oaCL !I { L ) h 0 \ \o ;# / 0 Ro \/} )) i 0 \0ma \ / \ \\}\ \y \} �0 .. ` .. �\ G \ \0 7! ` }0C; | ][: !: _ £ /)_\ .-- m 00 00 }\ 0 > 0 u in o 0 HNZ--o o \ \\ /! \00 :; !r!! E0\ \ ®\ \ \ ) \ \ -- ] /j\] ! ] { { L ) h 0 \ \o ;# / 0 Ro \/} \ \ \ \0ma \ / \ \\}\ \y \} \ \0 �){ £ /)_\ .-- m { \ \ ; o # \ / \}o \ o \ \(\ \\ \ \ o \ { }\ ! ;!) o 00 , ! \ ! }/ Es o o 0 } \ \\ o !` {!!f \ } \ \/ ( IL \ ) h 0 \ \o ;# \/} \ \ \ o \ \\}\ \y \} \ \0 �){ > u in HNZ--o \ \ ; o # \ / \}o \ o \ \(\ \\ \ \ o \ { }\ ! ;!) o 00 , ! \ ! }/ Es o o 0 } \ \\ o !` {!!f \ } \ \/ ( IL \ El \ , q q k § v k � ¢i ƒ0 kz �0- U /< ! ! \\ \\)| E E c {f! ) § \ ) ( wt../ <);! t (;!( { %))) /! }) (/ i �t /)\ c u \> \( \ \) ; { \ .E . \! !�! \\ ) §! �gƒ \)) \ \. ! ( Nr CL Cl a� Ei t U N Q M O O N U) d C1 C f0 t U is c ca A z V u m ao CL o 0 r N N Z O O y 'a 0 () ¢ v m a STATEMENT OF INVESTMENT POLICY PURPOSE To set forth the City's policy concerning the investment of temporarily idle funds. It is the policy of the City to invest funds not required for immediate expenditures. Investments will be in compliance with governing provisions of law and the policy contained herein. Primary investment goals are security of principal, adequate liquidity maintenance, and yield, in that order. Investments shall be placed only in securities as outlined below. The balance between various investment instruments may change in order to provide the City with the best combination of yield, liquidity, and a consideration for other factors, such as placement of an appropriate percentage of available investment funds locally. It shall be the main responsibility of the City Council, in adopting this policy and reviewing the investment holdings on a monthly basis, to preserve the investment principal. INVESTMENT AUTHORITY Under the direction of the City Manager, the investment authority has been delegated to the Director of Administrative Services, who is responsible for administration of the City's investment program, and who shall thereafter provide a monthd� report rukirding the status and changes in the City',; -of-ti j ; investmcnt pitta( ho to the City Council. This authority shall be renewed annually as part of the review and update of this Policy. In addition to the monthly investment report that is submitted to the City Council, the Administrative Services Director shall provide more detailed investment information to the City Council as requested. The City Council shall be briefed directly by the City's investment advisors on a quarterly basis whenever possible. Sections 53600 -53601 of the California Government Code provide basic investment limits and guidelines for government entities. In the event an apparent discrepancy is found between this policy and Sections 53600 - 53601, the more restrictive parameters will take precedence. FINANCIAL INSTITUTIONS The City shall not deposit funds with any financial institution not receiving a minimum overall satisfactory rating for meeting the credit needs of California Communities in its most recent evaluation ( §53635.2). - LIQUIDITY 1 of! Sufficient funding to accommodate at least two- week's projected cash outflow is to be maintained in immediately available investments, such as the State Local Agency Investment Fund, maturing certificates of deposit, or similar liquid instruments. An analysis of cash flow must be conducted at least weekly to serve as the basis for determining appropriate maturities for investments. At no time shall the liquid cash on hand be less than 5 percent of the City's total investment portfolio. For purposes of this policy, cash on hand includes all cash and investments accessible within 48 hours.- ACCEPTABLE INVESTMENT INSTRUMENTS- The following are types of investments made by the City and the guidelines for investing in each. -In all cases, investments shall be made in the context of the "Prudent Man" rule whieh states, in part-, that� There are many sli�xhtly vaFied versions of thill rule but the one spelled out in the California Government Code, Section 53600.3 is gxeted-as follows: "When investing, reinvesting, purchasing, acquiring, exchanging, selling, and or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the ag*encv, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part th�of —an overall investment strategy, investments may be acquired as authorized by law. " - In this light, the City of Newport Beach does not purchase or sell securities on margin. Additionally, any institution, which holds either the collateral or the investment instruments themselves in safekeeping for the City, must maintain at least one billion dollars ($1,000,000,000) in assets.- A. Certificates of Deposit Only fully collateralized certificates of deposit with FDIC insured institutions will be utilized in investment of City funds. Government securities having a market value of 110 percent of the total amount of investment are acceptable as collateral. Noncollateralized CD investments may be made in amounts less than $100,000 so long as they are fully insured by the FDIC.- 101L Not more than 10 percent of the City's investment portfolio shall be invested in certificates of deposit with any one institution. CD's will not be placed for a period of longer than one year. Further, an institution must meet the following criteria to be considered by the City:- 1. The institution must maintain at least $1 billion in assets ($100 million for fully insured CD's of $100,000 or less).- 2. The institution must have been in business at least three years.- 3. The institution must have a net worth to asset ratio of at least 6 percent: 4. The institution must place and maintain on file with the City an audited financial statement not more than one year old. 5. Interest shall be paid to the City on a monthly basis.- B. Negotiable Certificates of Deposit- As a matter of policy, the City invests in Negotiable Certificates of Deposit only with U.S. Banks whose underlying securities are rated A -1 or P -1 by one of the top two rating agencies and having assets in excess of $10 billion, so as to insure security and a large, well - established secondary market. Ease of subsequent marketability is further ascertained prior to initial investment by examining currently quoted bids by primary dealers and the acceptability of the issuer by these dealers. No one issuer shall exceed more than 10 percent of the portfolio, and maturity shall not exceed one year. -The California Government Code Section 53601 limits investment in negotiable certificates of deposit to 30 percent of the portfolio.- C. Bankers Acceptances- The City may invest only in Bankers Acceptances issued by the 100 largest banks in the world, which are eligible for purchase by the Federal Reserve System, the short term paper of which is rated at the highest category by Moody's and Standard & Poor's. -In the case of foreign banks, the Bankers Acceptances must be written by their U.S. branches. Maximum maturity shall be 180 days. No more than 30 percent of the City's overall investment portfolio shall be placed in Bankers Acceptances, with no more than 10 percent of the City's portfolio invested in the banker's acceptances of any one commercial bank.- D. U.S. Treasury Issues • 1•••• The City may invest in treasury notes, bills and bonds. Safekeepintg L4f) .ri entatiI&n or tlie.;c —�'i ns_ ru,T= � `.�u-- +cEure c"'" �ceeeu-r t inn —the ran e is reguil-e . Maximum maturity of any U.S. Treasury issue shall be five years. E. Securities of Federal Agencies and Federal InstrumentalitiesAgene -r a��- � Securities of this type that are acceptable for the City's investments are Federal National Mortgage Association, Federal Home Loan Bank notes, Federal National Mortgage Association notes, Federal Farm Credit Bank notes, or any other. U. S. Government Agency security. Secur-ity requirements and matu limitations th same cncaca ccc.�, c� are the same as those for U.S. TreaSttrF ti3�l E'S. F. Commercial Paper- The City may only invest in commercial paper issued by large, exceptionally well - established firms (firms with assets greater than $1 billion and their subsidiaries) organized and operating in the United States with the highest Moody's or-e-F Standard & Poor' ratings (Al /Pl �). Commercial paper shall be used solely as a short -term investment not to exceed 270 days. No more than 25 percent of the City's portfolio may be invested in commercial paper. Seearity requirements aretke sate as t-hase lisle' above. Investment in commercial paper of any one issuer shall not exceed 10 percent of the portfolio.- G. Repurchase Agreements ( Repos) and Reverse Repurchase Agreements- Repos and reverse repos shall be used solely as a short -term investment not to exceed 30 days. The institution from which the City purchases a Repo must deliver adequate collateral to the City's safekeeping account (either directly or through a third party safekeeping agent), consisting of U.S. Treasury or Agency securities at the rate of 102 percent of the face value of the repo. The amount of this collateral must be sufficient to compensate for fluctuating market conditions. Repos will only be purchased from Primary Dealers.- The City must own assets for more than 30 days before they can be used as collateral for a reverse repurchase agreement. No more than 10 percent of the portfolio can be involved in reverse repos.- H. Passbook Savings Accounts- Savings accounts may be used as a repository for customer deposits, or for similar purposes. Consistent with the requirements for CD investments, funds deposited in savings accounts must either be FDIC insured or collateralized.- `I I. Local Agency Investment Fund (LAIF) (State of California)- State Regulation of I. -All' is sot forth in California Government Code Section See# e>316129.1. "l he currente- Err+entiv limits on any one City's investment in this fund #i--is $10-40 million z one time , and the number of transactions (deposits or xvithdrawals )is limited to 15 prt)h:' - :,r ' - -- I G 4 ;_ .4 e�Ersit° :4' ' - .- per month. The City's participation in LAIF shall conform to State Regulation. -In general, it is the Citv's intention to use investment in LAIF investor . ,4 ,, this Pool is me e,i 4,, >„ . d as a temporary repository for short -term funds used needed for liquidity purposes. -,__I he. \Jhnini >trativc 4 n ico'; Dircctor shall mauitain on file - appropriate information - - - -- ....... - -- — - - -- — ...... concerning L_;V!:'� c- irrcnt investment .policies, practices and performance; as well a.tiohw a„R it,, r,, iiwnicntti fOr artici?.;ti n.- i;irluc,ini;, 1,ut tnt 1 11 itc 1 kl >, l._._..._ ..._.._. -..... -1.. -t. li:nitatievi; oll u_ ; n;it5 or \cithdnia �,als and the composition of the portfolio. 44+e eafftposition of - the -iw i t, 4 �. ...7 ..1, ..1� L.,, :... -1 .. •a.. ! .J ,4.. -ac-te ki-ItS tl �-f3€ all }rtv eti#uti�Es -xrv' a 1 J. County Investment Funds- Los Angeles County provides a service similar to LAIF for municipal and other government entities. -This Fund is available to certain cities outside of Los Angeles County, including Newport Beach, Investment in this pool is intended to be used as a temporary repository for short -term funds used for liquidity purposes. At no time shall more than 5 percent of the City's total investment portfolio be paced in this Pool.----' lic \,_. n.,..., a.i 1_ti1'1_\ ices [.n, < <_,__. -_: nl .intai-) eni tik appropriate information concerning the county pool's cun_ent investment policies, practices and performance; as well as its requirements for participation, including, but not limited to,_ limitations on deposits or withdrawals and the composition of the portfolio, E<ruv —p r;n tni�E'!itfile''kt lie= -- 'rli�' ". -rcT- „ ottirenients i for n4:.- :12n4:on ( 1:. :H4 '4r Pr<r�c rics OF Of th-1 i tia- the {- Aiil-lffl- The City shall not invest funds with the Orange County Pool: K. Medium Term Corporate Bonds /Notes- Wefks tee Fae. Investments of this type will n ronly be in corporations rated in the top three nk-Ae- eateg+m4es -AA or better by tllvo of the .i,_„ 1i.. es4 nationally recognized rating services. Maximum term to maturity for individual securities shall not exceed fire -four years, - the ,r4F..�.lc+nxtri iCriii I)e , ,-te 7 iR lnl, dillm po of R14hlr441 greater than 7 J mars. No more than 30 percent of the City's investment funds shall be placed in securities of this type. As a additional "on, -not move n.«perc �an two yeaFs to maturity. be invested in "A," rated seEuvities, and none of these investments shall exceed L. Mortgage— backed Securities and Asset - backed Securities- hnvestments in securities of this type are limited to mortgage- backed pass - throu�h securities issued Up a US government agencv; or consumer receivable pass - through certificates or bonds. Securities eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by Moody s Investor Services and S &P. The security itself shall be rated in a rating category of "AAA" or its equivalent or better by Moodv's Investor Services and S &P. The maximum final stated maturity of anv securitti- of this type shall be five years. No more than 20% of the Cityys investment funds shall be placed in securities of this tie. ;kr City's est;. ea f M.M. Municipal Bonds- California MMunicipal bonds rated AAA, or AA and insured, are acceptable investments for the City. Not more than 15 percent of the portfolio shall be in investments of this type.- NN. Money Market Funds- The City may invest in Money Market Funds subject to the following constraints. Investment in these funds is primarily intended for short -term "sweep account" purposes, not for longer -term investments.- 1. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a -1.)- 2. The company shall have met either of the following criteria:- a. Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations.- b. Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than ten years' experience managing money market mutual funds with assets under management in excess of one billion dollars ($1,000,000,000).- 3. The purchase price of shares of beneficial interest purchased shall not include any commission that the companies may charge.- 4. No more than 20 percent of the City's investment portfolio shall be invested in money market funds.- 7 of 109999 5. The City shall invest only in Money Market Ffunds that have a police of maintaining a constant daily net asset value per share of $1.00.t-he market value of which is or has been less than $1 per share. PROHIBITED INVESTMENTS- Consistent with California Government Code 53601.6, inverse floaters, range notes, mortgage derived interest -only strips, or any security that could result in zero interest accrual if held to maturity are specifically prohibited, except to the extent that they are shares of diversified management companies registered under the Investment Company Act of 1940: The City shall not purchase any security rated Al and or A+ or below if that security has been placed on "credit watch" for a possible downgrade by either Moody's Investor Services or Standard and Poor's.- Investments not specifically approved by this policy are prohibited.- ASSET/ INVESTMENT MANAGEMENT AGREEMENTS- The City may employ the services of asset/ investment management companies. Such companies must have a history of producing no losses and relatively high net returns. They must also be well established and exceptionally reputable. Members of the staffs of such companies who will have primary responsibility for managing the City's investments must have a working familiarity with the special requirements and constraints of investing municipal funds in general and this City's funds in particular. They must contractually agree to conform to all provisions of governing law and the collateralization and other requirements contained herein. At no time shall more than 30 percent of the City's total investment portfolio be placed in any one investment management account. In order to implement this requirement, the City's portfolio assets will be reallocated annually among its investment managers: SAFEKEEPING/ THIRD PARTY CUSTODIANS All cash and securities in the City's portfolio, including those that are being managed by private sector asset / investment managenent companies, shall be held in safekeeping in the City's name by a third party bank trust department, acting as agent for the City- under the terns of a custody agreement executed by the bank and the Citv. Cash and - -- - f:.:, - in the GitH 'S portfolio, ..i,,,.i, ape being managed by - private se asset/investment management companies, wil.1 not be in the cu-tedy of t eetwpanies -The City will contract separately with major banks or other well - established, reputable financial institutions, which provide custodial services to maintain custody of cash and securities in the City' portfoliois categefy. -In the case of a 8 of 109999 t� major financial institution, the City may have an asset/ investment management relationship, and a custodial relationship, with the same entity. However, the services must be provided by separately managed departments within that entity, and the City's _.,,,.,l:r ;l•l,i must be hc'i.i in the City's namr completely separate and distinct from the assets of the institution and from all other portfolios managed by the institution.- ,vuriHcs will be rccei\ cd and delivered usin'* standard drli\_ery very '; I a\ meat A.! _.. -- -- —r - - - --- I Wfl) u(u lurc,; th(r C ity :s.safekce,int; months, and shall also include a statement of compliance with investment policy for assets under his direct management. In addition, the City Council shall be notified whenever 5 percent or more of the total portfolio is invested, withdrawn, or moved from one Investment Advisor or Pool to another. 10 of 109999 '1 RESERVES/ DESIGNATIONS OF FUND BALANCE PURPOSE F -2 To establish City Council policy for the administration of financial reserves and fund balances. DISCUSSION A Background. Prudent financial management dictates that some portion of the funds available to the City be reserved for future use. Future uses are categorized as either pre - planned projects or unforeseen financial emergencies. For clarification, the Cite also has a number of Special Revenue Funds. These Funds are somewhat similar to reser\ es in that they act as a repository for money drat can only be used for specific purposes. Rosen es are generally distinguished tram Lpecial Revenue Funds in that decisinnti re Ta�niinLI the purpose anti /or the amounts to be set aside, as well as the circumstances for use normally fall within the authoritN. of the Cite Council = +r_z _ = { -h zt* r:: That authority nurmalk T sts_I3mely with an external entity in the case of:Special Revenue 1 wins. H. 4.---Structure and Funding of Reserves. This Policy establishes Reserve Accounts or designated Fund Balance levels for moneys being held in reserve. In addition, the sources and eventual use of Reserve Funds are set forth. It is the policy of the City Council that each Reserve identified herein is to be fully funded as part of the annual budget process. If operational or other considerations require the City Council to temporarily override this policy during any fiscal year, the City Manager will recommend to the City Council a plan to restore any Reserves falling below required minimum levels. Reserve levels will be restored as soon as practical, but in not more than 5 years. Each of the City's fiscal reserves is established and maintained for one of four purposes listed in general order of importance below. If the reserve requirements of this policy are unmet in any fiscal year, the City Manager will recommend funding prioritization to the City Council as part of the Budget. 1 F -2 Use of Reserves. The City Council decides whether to appropriate funds from Reserve Accounts. Even though a project or other expenditure qualifies as a proper use of Reserves, the Council may decide that it is more beneficial to use current year operating funds or bond proceeds instead, thereby retaining the Reserve funds for future use. Reserve Funds will not be spent for any function other than the specific purpose of the Reserve Account from which they are drawn without a separate City Council Resolution approving that specific action. Information regarding Annual Budget Adoption and Administration is contained in City Council Policy F -3. C. D Categories of Reserves. 1. Accounting Reserves. Generally accepted governmental accounting practices require identification of generic reserve funds for certain purposes. These accounts represent the unspendable portions of fund balance, such as inventories and long tn-«don r -term receivables, as well as funds that are legally restricted by some external source, such as debt service reserves and encumbrances. Reserving funds for a contract awarded in one year but not completed until a succeeding year is one example of an accounting reserve for encumbrance. 2. Contingency Reserves. Contingency Reserves represent funds for unexpected financial emergencies. One example requiring the use of this Reserve is the adverse impact of natural disasters such as earthquake or flooding on revenue availability, as well as increased demand for City services. Other examples are unexpected loss or reduction of a key revenue source; special projects, programs, or price changes mandated by another government entity, and emergency capital projects needed to deal with unforeseen structural failure. 3. Designated Reserves. These Reserves are designated for known or anticipated events. Such events require large, non - recurring financial outlay, such as the replacement of systems and equipment or major capital improvements. 4. Stabilization Reserves. Stabilization Reserves enhance the orderly management of the Operating Budget by stabilizing revenues and expenditures, which fluctuate beyond the ability of City staff to control or predict. One example is the annual change in retirement contribution 2 ' L` F -2 rates mandated by the Public Employee Retirement System (PERS). Other examples are changing prices for utilities and fuel, as well as the volatility in certain special program funding. These Reserves provide stability by "smoothing out" v ear —� ,ear -to -year volatility in the City's finances. FUNCTION AND ADMINISTRATION OF RESERVE ACCOUNTS Reserves are identified below by fund, category and specific function. The specific numbers of accounts where these Reserves are physically located change from time to time as the overall account structure is updated and modified. However, the Fund Balance Statement, which is available for ready reference in the City's Annual Budget document, identifies balances, past -year activity, and projected current year activity for each of these Reserves. A. General Fund. 1. Accounting Reserves. a. Reserve for Inventories. The value of inventories purchased by the City but not yet issued to the operating Departments is reflected in this account. b. Reserve for Debt Service. Funds are placed in this Reserve at the time debt is issued. The provisions governing the Reserve are established in the Bond Indenture, and the Reserve itself is controlled by the Trustee. C. Reserve for Long Term Receivables. This Reserve is used to identify and segregate that portion of the City's financial asks whkhassets, which are not due to be received for an extended period, so are not available during the budget year. d. Reserve for Encumbrances. This Reserve accommodates spending for contracts or other items, which are legally committed but not expended by fiscal year end. n, c2 n. �`atiens, Try.: ito t, funds P.E4 j vet ttr�}i �• „7 in tile annual 1 get— it isS- nc.== r mail = v=- kYSeti- l�' x'Ij =- t�l- ri�..'the- �'t'F,�t'E 3 F -2 2. Contingency Reserve. This Reserve has a target balance of not less than ten percent (10 %) of annual General Fund expenditures. The City Council authorizes expenditures from this Reserve. 3. Designated Reserves. a. a Capital Improvement. Generally accepted governmental accounting practices do not provide for the depreciation of assets of Governmental Funds such as the General Fund. Therefore, special procedures are required to set aside money (a "sinking fund ") for replacement or renovation of fixed assets such as, but not limited to, City Hall and Police Department buildings, Fire Stations, and Library Branches. The Capital Improvement Reserve will accumulate funds only for infrastructure items financed through the General Fund. Infrastructure assets of Enterprise Funds, as well as those of Governmental Fund, for which non - general fund money is available, are not components of this Reserve. Funds from this Reserve are restricted to replacement or acquisition of periodic, major projects or improvements typically exceeding 0.7 percent 0.7% of the annual General Fund Operating Budget (not including capital projects). Projects for which this Reserve is intended generally have the effect of extending the useful lives of infrastructure items. The City Manager will update the status of items of the General Fund infrastructure inventory on an annual basis. Included as part of the City Manager's budget proposal will be a plan to fund this Reserve at a level of not more than one hundred percent (100 %) of the replacement cost of each asset by the year in which replacement is anticipated. b. b-.—Senior Citizen Site. This Reserve is established by Council Policy I -5, which specifies that ten percent (10 %) of revenue collected from rental of facilities at the Oasis Center be set aside for equipment replacement and/or refurbishment at the Center. 0 F -2 c. e -- -Park Fees. This Reserve contains Park Fees collected by the construction permit process. Use of Park Fees is governed by Council Policy I -1, which limits their expenditure to park, open space, and recreational facilities. d. d —Off Street Parking. Newport Beach Municipal Code 12.44.025 establishes this Reserve and governs its administration. Fifty percent (50 %) of parking meter revenue collected in designated areas is set aside for acquisition, development, and improvement of off street parking facilities within those areas. r. WIN imi r r e_ —�— Paramedic Program (Hoag - This Reserve was established by the City in conjunction with debt issuance agreements with Hoag Hospital. In addition to the original amount(s) deposited to this reserve, effective July 1, 2000, any excess revenues generated by this program, after accounting for General City Overhead of fifteen 4-65--percent 15% shall be deposited to this reserve account for future paramedic related purposes, to a maximum of $250,000. Funds in this reserve account may be used for any paramedic related purpose as directed by the City Council. Target level for this reserve is 2-5- twenty -five percent 25% of the annual budget for operations and capital expenditures. t. 13g-.—Recreational Instruction Reserve. City Council Policy I -2 establishes reserves for surfboard replacement and refurbishment, development of tennis courts, and development of new recreational activities. The Policy requires twenty percent (20 %) of gross annual revenues derived from specified recreational classes be set aside. IV. F -2 g. In Lieu Parking Reserve. This Reserve is established by NBMC 12.44.125. The City requires commercial businesses to provide adequate off - street parking. In some cases where this is not possible, businesses are afforded the opportunity to pay an annual fee and use parking spaces in a municipal lot, providing such a lot is located within specified proximity to the business. This Reserve is the repository for these fees. Special purposes of the use of these funds have not been established by the Citv Council. h. Park In Lieu Reserve. This Reserve was established by NBMC 19.52. The City requires dedication of land or payment of fees for park or recreational purposes in conjunction with residential development. When fees are paid, the funds are placed in this Reserve. Specific guidance re ;arding use of the funds is contained in 19.52.030 anti 19.52.070. i. Neighborhood Enhancement Reserve A. This Reserve was established by NBMC 12.44.027, which directs that Revenues from Pparking Mmeters in Zone 9 shall be apportioned to this Reserve. Funds in the Reserve will then be used for the purpose of enhancing and supplementing services to the West Newport area. Both the nature of the supplemental services and the definition of the area served are set forth in the Code Section above. Neighborhood Enhancement Reserve B. This Reserve is almost the same as Reserve A above. The difference is that this Reserve pertains to the Balboa Peninsula, and it specifies that fifty percent (50% ) of the Pparking Mmeter Rrevenue will be apportioned to the Reserve. Specific details are contained in the Code Section. k. f0cean Front Restoration Reserve. . In the early 1990's, it was discovered by survey that improvements to several ocean front parcels were encroaching onto the public beach. The encroachment was relatively minor. The negotiated solution was for the property owners to pay a permit fee each year to the City. Revenue thus generated may only be used for ocean front restoration projects as approved by the City COUnCil. This Reserve is the repository for those funds. City Council Policy L -b contains additional background and details about the encroachment issue. 6 F -2 1. Reserve for Debt Service. For most types of General Fund debt financing, such as equipment lease - purchase agreements and other relatively short term debt obligations, it is the Cit1,'s police to set aside the full amount for the purchase price as part of the budget Process (cyith offsetting lease - purchase revenue). 'this Reserve will be used for that purpose. The intent is to draw down the Reserve as part of the budget process each year to provide funds for debt seryia• t)�Iymcnts. m. Other Designated Reserves. The Administrative Services Director may add additional designated reserves as required. This will normally be done in response to new programs or policies established by the City Council or another government entity providing funds to the City. Examples are the 3a -rkia Rt erg, -Oil Spill Recovery Reserve, and the Public Library Fund Reserve. 1. i Stabilization Reserves. a. Tl-Tt-General Fund Stabilization Reserve. This Reservc has a target balance of two percent (2 %) of the budgeted expenditures within the General Fund. Each year, the City Manager will analyze uncontrollable revenues and expenditures. When expenditures are required from this Reserve, the City Manager will note the reasons in the preliminary and final budget. The Stabilization Reserve may have subdivisions. b. Reserve for Appropriations. This is a temporary repository for funds not yet fulls appropriated in the annual budget. It is normally used - during the budget process to set aside funds for known ur strongly anticipated expenses that will need to be addressed bti budget amendment during the budget year. Sometimes the dollar amount and /or appropriate account breakdown for such expenses cannot be specifically identified at the time the budget is adopted, even though the funds will be needed. In such cases, the funds will normally be budgeted to the Reserve for Appropriations. 7 F -2 C. Change in Fair Value of Investments. -The City is required to adjust annual investment earnings up or down each year for the difference between their investments valued on a "- -'Cost Basis " -' and their relative "- -'Fair Market Value." -On one hand, this market value adjustment is valuable because it provides an indication of what the portfolio is worth if it has to be liquidated on short notice. On the other hand, it sometimes generates artificial volatility in apparent annual earnings and leads to confusion about how much real cash revenue is being generated for use in the annual budget process. The purpose of this Reserve is to identify the difference between the Fair Market Value based revenue and actual cash revenue. This difference is "set aside" on the Fund Balance Statement before detail work on the annual budget begins. It maNt be either a positive or negative number, depending on the Fair Market Value adjustment made in the CAFR each year. d. PERS Rate .Reserve. This Special Subdivision of the Stabilization Reserve has been established for the specific purpose of helping to smooth out (for internal budgeting purposes) the year -to -year fluctuations in PERS rat• I + + -1 PERS rates have been one of the most volatile and unstable elements on the expense side of the City's annual budget process. The long -term goal is to budget the normal cost of PERS rates, setting aside the extra money in this Reserve when actual rates are below that level. Converselv, when actual rates are above that level, funds from this Reserve can be drawn upon. At this writing- (2003 ) significant PERS rate increases in the out vears are anticipated. Therefore extra "seeE r -e n<< -funds will be placed in this Reserve, subject to availability. B. B —Tide and Submerged Land Fund. - Within this Special Revenue Fund, a special. Designated Reserves has been created. Upper Newport Bay Restoration Reserve. This reserve is the revository for .funds mandated by SB573, as well as 'special fees charged to pernut holders :• he cannot mitigate certain impacts 14u ?.as an alternative to meeting certain specified mitigation criteria. In addition to the mitigation fees, 10% of Beacon bav lease revenue is placed in this Reserve. Funds in the Reserve are designated for Upper .Newport Bay restoration projects. m F -2 :'ermancnt Endowment Fund (Robinson Skinner Annuitv). Similar to the above Fund there is a Designated Reserve within this special Purpose Fund. The Newport Bay Dredging Reserve. ( Robinson- Skinner Annuitv) -3s—. This Ne,;crn c is the repository fur the Robinson- Skinner Annuity funds. In general, the endowment specifies that the principal amount will not be depleted, but that investment earnings maNr be used for dredging; projects in Newport Bay. D. _ Water Fund. (City Council Policy L -20 contains additional information concerning budgeting and rate setting within the Water Fund.) Contingency Reserve. a: - - -Water System Reserve. This Reserve is used for emergency repair to the water system. The target level for this Reserve is 2a-,2,5thirty -five percent 35% of the annual budget for operations ateal 2. Designated Reserves. a - ----- -- - --------- - - - - -- _ - Future Water Infrastructure Reserve. This Reserve is used for large designated projects that are part of the water distribution system. _System replacement/ upgrade and most improvement/ major maintenance projects are funded within that amount. However, certain large -scale projects are projected on a ten -year horizon, which is updated and refined each year. The purpose of this Reserve is to set aside partial funding for those projects in advance. Included as part of the City Manager's annual budget proposal will be a plan to fund this Reserve at a level of not more than one hundred percent (100 %) of the projected cost of planned projects by the year in which contract award is anticipated. Projected future costs notwithstanding, a minimum of f-iN-e -ten percent (510 %) of the annual budget for operations anti ,-apical expeR i4ilres will be set aside to this reserve each year. The City Council must approve the ultimate fund transfer from this Reserve to a designated Water Enterprise Fund Capital Project Account as part of the Budget process. ;J F -2 3. Stabilization Reserve. Water Rate Stabilization Reserve. This Reserve is used for water rate or fee stabilization to offset large expenditures changes such as water purchase-cests, energy eests -or treatment costs. The intent of the Reserve is to provide funds to offset cost increases that are projected to be short - lived, thereby partially eliminating the volatility in annual .rate adjustments. It is not intended to offset ongoing, long -term pricing structure changes. The tarF et level of this reserve is 25twenty-five percent (25 %) of the annual budget for operations. Funds will be set aside only if target Contingency Reserve level is met. The City Council must approve use of these funds, based on City Manager recominendation. See also Cih- Council Policv L -20. E. E. 4) Wastewater Fund. 1. Contingency Reserve. a. Wastewater System Reserve. This Reserve is used for emergency repair to the Wastewater system. The target level for this Reserve is 33 78seventy percent 70% of the annual budget for operations -... expenditur-e 2. Designated Reserve. a. Future Wastewater Infrastructure Reserve. This Reserve is used for large designated projects that are part of the City's Wastewater system. Funds are reserved for large -scale future projects, which cannot be accommodated within the annual budget of the year in which they are planned. In the years prior to estimated contract award, the City Manager's budget proposal will include a plan to set money aside in this Reserve sufficient to accumulate not more than one hundred percent (100 %) of the projected cost of such projects. 3. Stabilization Reserve. Wastewater Rate Stabilization Reserve. This Reserve is used for wastewater rate or fee stabilization to offset large expenditures changes such as energy eests -or operational costs. The intent of the Reserve is to 10 F -2 provide funds to offset cost increases that are projected to be short- Hvv.d, thereby partially eliminating the volatility in annual rate adjustments. It is not intended to offset ongoing, long -term pricing structure changes. The target level of this reserve is 2-5twenty -five percent (25 %) of the annual budget for operations. Funds will be set aside only if target Con tin e_�ncy Reserve level is met. The City Council must approve use of these funds, based on City Manager recommendation. See also City Council Policy L- 20. — F. P Internal Service Funds. Internal Service Funds receive moneys from departmental operating budgets. There are two Internal Service Funds: the Equipment Maintenance and Replacement Fund, and the Insurance Reserve Fund. One of the functions of Internal Service Funds is to act as reserve accounts. 1. Equipment Maintenance and Replacement Fund. The Equipment Maintenance and Replacement Fund receives operating moneys from the Departments to provide equipment maintenance and to fund the regular replacement of major pieces of equipment (mostly rolling stock) at their economic obsolescence. a. Equipment Maintenance Account. In order to provide adequate funds for unexpected extraordinary costs due to damage or mechanical failure to a large piece of equipment, five percent (5 %) of the total annual budget for equipment maintenance is retained in the Fund. b. Equipment Replacement Account. Departmental operating funds are charged amounts sufficient for the replacement of rolling stock in accordance with Council Policy F -9. Equipment replacement needs vary from year to year; therefore the year -end Fund balance will fluctuate. It will increase substantially in the years preceding major purchases or when an unusually large percentage of the fleet is scheduled for replacement. The City Manager annually determines and adjusts the rates for collection of funds from the Departments based on pricing, future replacement schedules, and other variables. 11 F -2 2. Insurance Reserve Fund. The operating budgets of City's Departments are charged for Liability, Workers' Compensation, and Compensated Absences. a. Liability and Workers' Compensation Accounts. These accounts each serve three purposes: Payment of insurance premiums; Payment of the deductible (self - insured retention) for liability or workers' compensation claims; Reserve for future claims. i. Collection of Funds. Each year, the City Manager will determine and adjust the internal collection rates from the Departments. ii. Short Term Expenditures. The Budget will account for projected expenditures during the coming year. iii. Future Costs. Money will be set aside each year to accommodate projected l g termlong -term cash outflow. The annual funding level will be sufficient to offset the estimated cost of known claims. Resolution of most claims fallResolution of most claims falls within a three -year window. At this time, the target fund balance each year is f}fty­ei ht percent (850 %) of the estimated overall liability for known or anticipated claims, based on the City's general experience in the past. 3. Compensated Absences Fund. a. Background. Employee benefits such as accumulated flex leave, vac =tioa, vacation leave, and sick leave, have a cash value. Accounting practices require that the book value of the City's compensated absences liability reflect the cash outflow as if all absences were cashed out immediately. Much of this cash outflow will never occur, since the benefits will be taken in the form of time off, rather than cash. Additionally, the cash outflow could occur all 12 F -2 at once only if the City dissolved and made full payment for all accumulated leave amounts. The largest portion of leave -to -cash conversion is at an employee's retirement. That amount can be estimated with reasonable accuracy. b. Policy and Practice. The City will fund an appropriate amount, but not the entire long -term book liability, for compensated absences. Each year, the City Manager will project the amount of expected short -term cash liability for compensated absences and budget expenditures from the Compensated Absences Account. ii. The City Manager will establish a target closing balance that will fund not less than twenty-five percent (25 %) of the long- term liability for compensated absences. 4. Retiree %Medical Fund Reserve. The Cite has established a special orncram whereby medical insurance costs of its retirees are partially offset by limited contributions from lithe Cite and members of the active duty workforce. I n a ddition to coyering each vear's required custs on a_`kIa as you go" basis, a special Reserve has been established for the lon, term accumulation of money to offset the unfunded liability of this program. I he Cite contributes S20 per full —time active employee per month to this Reserve, and each full —time active employee contributes 510 per month. -phis Reserve is the repository for these lung -term accumulation funds. Money in this Reserve is not to be used to partially offset annual costs of the program at any time until the unfunded liability of this program is fully covered by the balance in the Reserve. At that point, funds in the rescrvc may be depleted for use in paying annual expenses, or replenished each year if inadequate, depending on the status of the unfunded liability. The goal is for the balance in the Reserve to coyer the unfunded liability on an ongoing basis. Adopted - January 24,1994 Amended - April 10, 1995 13 Amended - April 27,1998 Amended - March 14, 2000 Amended - May S, 2001 Amended - April 23, 2002 F -2 14 BUDGET ADOPTION AND ADMINISTRATION PURPOSE To establish the policy for the preparation, adoption, and administration of the City's Annual Budget. POLICY A. Organization and Development of the Annual Budget. Each year the City shall prepare and adopt, by formal Resolution, an annual budget as required by the City's Charter and as provided for in the City's Budget Instructions. - -- The Annual Budget is published in three volumes, the Resource Allocation Plan (RAP), the Budget Detail and the Capital Improvement Program (CIP). The RAP provides an overview of each department's mission, functions, statistical information, and budget. It also provides summary information regarding the Capital Improvement Program, as well as summary information for budgeted and historical overall City revenues, expenditures, and fund balances. The Budget Detail contains line by line information regarding operating expenditures for the prior year, current year and budget year. The CIP document provides a summary of current and future planned projects, basic descriptions of each project, the funding source and the scope of work to be performed. The City programs expenditures into four classifications. These are Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures. Capital Expenditures are subdivided into Capital Outlay, which is generally used for items of operating equipment or other purchases in excess of $500, and Capital Projects, which generally deal with Public Works related improvements for a distinct and identifiable purpose and function. Budgeted Expenditures for all four classifications are aligned in the Budget Documents by Department Budget Units, which usually coincide with Operating Divisions within the City's organizational structure; and, separately, by Capital Projects. Therefore within each Division Budget, there will be sections for Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Outlay. During December of each year, the Administrative Services Department shall prepare preliminary fund balance estimates for the current year and preliminary revenue estimates for the next fiscal year. In January of each year, the Administrative Services Department shall prepare a budget calendar and issue budget instructions and expenditure detail to each department for use in preparation of the next year's City budget. Included in these instructions will be budget guidelines and appropriation limits for each department. These guidelines will be developed by the Administrative Services Director and approved by the City Manager. In accordance with City Council Policy F -2 (Reserves/ Designations of Fund Balance), the status and possible changes in Reserve Accounts shall be addressed as part of this process.- After submission of revenue and appropriation requests by each department, the Administrative Services Department shall summarize the requests for review by the City Manager and Department Heads. After review by the City Manager and Department Heads, the Administrative Services Department shall prepare the City's proposed budget for the next fiscal year and shall submit said proposed budget to the City Council. Thereafter, the City Council shall hold as many budget study sessions as it deems necessary. Council budget study sessions shall be recorded. All proposed Council changes in the City Manager's proposed budget shall be added to a budget checklist. - Subsequent to Council review and prior to its final adoption, the City Manager shall provide each Council Member with an itemized list of all proposed changes to permit a roll call vote by the City Council on each item during a Council meeting.- The City Council shall hold a budget hearing and shall adopt a budget on or before June 30 as required by the City Charter.- B. Administration of the Annual Budget. During the budget year, Department Heads and their designated representatives may authorize only those expenditures that are based on appropriations previously approved by City Council action, and only from accounts under their organizational responsibility. In addition, budget expenditures may only be authorized in the year appropriated. Any unexpended appropriations, except valid encumbrances, expire at fiscal year end unless specifically reappropriated by the City Council for expenditure during the new fiscal year. Department Heads are responsible for not authorizing expenditures above budget appropriations in any given expenditure classification within their purview, without additional appropriation or transfer as specified below: 1. New Appropriations. During the Budget Year, the City Council may appropriate additional funds for special purposes by a City Council Budget Amendment. The City Manager has authority to approve requests for budget increases not to exceed $5000 in any Budget Activity or Capital Project. (This must be specifically included in each year's Budget Resolution to remain valid.) - 2. ?: Grants & Donations. The City Manager may accept donations or grants of up to $5000 on behalf of the City and appropriate the funds for the purpose intended. The City Council will be formally notified of such actions on a quarterly basis by way of the City Manager newsletter to the City Council. (This provision must be specifically included in each year's Budget Resolution to remain valid.) — Additionally, grant appropriations approved by City Council may be carried forward to the following fiscal year(s) as long as the grant terms remain valid, the expenditures are consistent with the previous Council authorization, and the funds would otherwise need to be returned to the granting or donor agency. Grant contracts and restricted donations in excess of 55,000 must be specifically approved by the Cite Council. Often such a rg ant is approved in advance of receipt by the City Council, but the funds are not appropriated to carryout the grant at that time. In such cases, the Cite klanatrmay appropriate the funds when they are received, provided the expenditures clearly meet the amount, terms, nature and intent of the grant or donation previously approved b� City Council. - 33. Transfers. During the fiscal year, actual expenditures may exceed budget appropriations for specific expenditure line items within departmental budgets. If a total departmental budget, within a specific Classification, is not exceeded, the Administrative Services Director has the authority to transfer funds within that Classification and Department, to make the most efficient use of funds appropriated by the City Council. (Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures are the City's four Classifications.)- 44. Realignments. Further, funds may be realigned between one Department Budget Activity and another, within the same Classification, with City Manager approval. For example, if a Fire Department function and the employee who accomplishes it are replaced by a slightly different function assigned to the Police J�i Department, the City Manager may authorize the transfer of appropriate funds to support this function: eD. Reprogramming. Any reprogramming of funds among the four Classifications (Salaries and Benefits, Maintenance and Operations, Other Charges, and Capital Expenditures) within a given fund requires the City Manager's approval. Any budget revision that changes the total amount budgeted for any fund (other than the minor provisions contained in paragraphs B.1. and B.6.b.) must be approved by the City Council.- 66. Capital Projects. The Department Head having primary responsibility for a Capital Project (usually the Public Works Director) is authorized to — encumber and approve subsequent expenditure of City funds for Capital Projects. However, contracts in excess of $30,000 require specific City Council authorization at the time of contract award. In addition, any contracts not of format and wording already approved by the City Attorney require specific City Attorney review and approval prior to contract award. Once a contract has been awarded, change orders may be approved by the Public Works Director, or other Department Head having responsibility for the Project, so long as the net total amount committed to the Project remains below 110 percent of the original contract award amount; and so long as the original amount appropriated for the Project by City Council is not exceeded. Change orders exceeding the above thresholds may be approved by the City Manager as follows:- a. Total spending for any single contract may not exceed 125 percent of the original contract award amount without City Council approval.— b. The total amount authorized for a capital improvement project may be increased by transferring funds from one Project to another or by reprogramming funds from any of the other three classifications (see B.5), so long as the new total does not exceed 110 percent of the original amount appropriated by Council. - C. In the event that the transfer or reprogramming action in B.6.a. or B.6.b. above would result in a material reduction in the scope of the capital project or other City activity from which funds are to be withdrawn, City Council authorization is required. For example, the movement of 5five percent 5/. of the funding from one large project to another large project of the same general category could be approved by the City Manager, whereas the elimination or significant reduction of two small, unrelated projects to provide funds for a 5—five percent 5% increase in a much larger project would require City Council approval. In all instances, notification of any changes to capital project contract amount or budget authority must be communicated to the Administrative Services Director: All unexpended and unencumbered capital projects will be canceled on June 30 of each fiscal year. The appropriation balance of these canceled projects will be recorded in the Reserve for Capital Improvements or another appropriate Reserve Account by the Administrative Services Director at fiscal year end (see also paragraph C.2. below).- 77. Reserves. Funds from unappropriated contingency reserves may be transferred to active Classification accounts only by City Council Budget Amendment: C. Additional City Council, City Manager, and Administrative Services Director Responsibilities. The Administrative Services Director is responsible for checking purchase requests against availability of funds and authorization as per the approved Budget. The City Manager is responsible for approving expenditures which do not conform to the approved Budget, but which fall within the exceptions noted in this policy statement. It is the responsibility of the City Manager to administer the City's budget within the framework of policy and appropriation as approved by the City Council.- 1. Special City Council Expenditure Approval. Once the final Budget has been approved by the City Council, specific City Council approval to make expenditures consistent with the Budget will not be required, with two exceptions (see also Purchasing and Accounts Payable Procedures):- a- Capital Projects in excess of $30,000.- b. Consultant Contracts in excess of $30,000.- All other budget administration actions, including the routine filling of vacancies in staff positions authorized within the Budget, will not require further City Council approval. However, new positions and other new expenditures do require City Council approval, and the City Council and City Manager reserve the right to impose any special fiscal control measures, including a personnel hiring freeze, and other spending controls, whenever circumstances warrant. —Since the annual Budget is approved by formal Resolution, a request by a City Council Member for review of a portion or portions of the Budget, with a view toward changing amounts appropriated or the purposes for which they were appropriated, requires a majority vote of the City Council: 2. At fiscal year end, the Administrative Services Director is authorized to realign, reprogram, and /or transfer money among accounts within each Fund in order to close the books of accounts of the City of Newport Beach in accordance with generally accepted governmental accounting principles as established by the Government Accounting Standards Board, Government Finance Officers Association, and other appropriate accounting or auditing pronouncements. Any net shortage within a Fund will be recorded as a decrease in Fund Balance and reported to the City Council. Any net excess will be recorded as an increase to one or more appropriate Reserve Accounts as recommended by the Administrative Services Director and approved by the City Manager. (Information regarding appropriation of Funds from the Reserve Accounts is contained in City Council Policy F -2.)- Adopted - January 24, 1994 Amended - February 27, 1995 Corrected - February 26, 1996 Amended - May 13, 1996 Amended - May 26, 1998 Amended - August 8, 2000 Amended - May 8, 2001 Amended - April 23, 2002 Formerly F -10, F -11, F -12, and F -21 PARK FEE POLICY PURPOSE I -1 The City of Newport Beach maintains an extensive park and open space system. The acquisition and development of our park and open space properties is funded, in part, through the payment of park fees paid by persons or entities who subdivide properties. The Subdivision Map Act requires park fees to be used only for the purpose of developing new or rehabilitating existing neighborhood or community park or recreational facilities to serve the subdivision that paid the fees. The City is required to develop a schedule specifying how, when and where the park fees will be used. The purpose of this Policy is to establish the criteria to be used in deciding which facilities serve subdivision residents and schedule whereby park fees are properly and timely committed to appropriate projects. POLICY A. Service Criteria. The Recreation and Open Space Element of the General Plan states that community parks and view parks serve the entire City. Community parks are those with improvements such as community buildings, parking, swimming, facilities for picnicking, active sports and other facilities that serve a larger population. Neighborhood parks which include unique recreational facilities, such as basketball courts, tennis courts, turf areas, active sports fields, community buildings, unique play areas or view parks are also considered City -wide resources used by all citizens. Accordingly, park fees generated by any subdivision within the City may be used to develop new or rehabilitate existing community parks, view parks, and those neighborhood parks listed on Exhibit A. The Recreation and Open Space Element divides the City into 11 services areas consisting of relatively discrete residential communities. These service areas were created for the purpose of determining whether particular geographical areas were deficient in terms of park and recreational facilities and to identify acquisitions or improvements which would provide residents with greater recreational opportunities. Accordingly, park fees generated by a subdivision within any services area may be used to create new, or rehabilitate, existing park or recreational facilities within that services area and as provided in the Recreation and Open Space Element. A-.B. Implementation Schedule. Park fees shall be placed in the General Fund immediately upon receipt with a special designation as Park Fees. These funds, after special designation, shall be used solely for the acquisition or establishment of new, or the rehabilitation of existing, park, open space and recreational facilities. The park fees shall also be placed on a schedule that lists the location of the subdivision, the fees paid, the date on which the fees were paid or the date on which building permits had been issued for '/� of the lots created by the subdivision (whichever occurs later), the service area within which the subdivision is located, the neighborhood park, recreation and open space facilities eligible for park fees generated by that subdivision, the date on which the park fees must be committed to specific project of improvements. The park fees shall be used only for the park and recreation facilities identified in the Recreation and Open Space Element and shall be utilized in accordance with the policies and standards specified in the General Plan. Designations for expenditures will be made as part of the annual budget adoption. [Attachment — Exhibit A] Adopted —June 27, 1994 Amended — April 23, 2002 EXHIBIT A PARK DEDICATION POLICY PARKS GUIDE The following view parks serve as citywide resources by reason of their unusual beauty and the view provided: Bayview Park Begonia Park Channel Place Park Cliff Drive Park Corona del Mar State Beach Park Ensign View Park Galaxy View Park Inspiration Point Irvine Terrace Park Castaways Park Jasmine View Park Kings Road Park Lido Park Lookout Point Newport Island Park Peninsula Park Rhine Wharf Park West Jetty View Park Westcliff Park The following Community and Neighborhood Parks serve as citywide resources by reason of the unique recreational opportunities they offer: Arroyo Park — Lighted multi - purpose field, basketball court, picnic areas and playground. Bonita Canyon Sports Park — (Anticipated opening of June 2003) Four youth baseball fields, one multi - purpose field, one soccer field, tennis courts, basketball court and connecting trail to Arroyo Park. Bonita Creek Park — Community center, lighted softball and multi - purpose field, and basketball court. Buffalo Hills Park — Basketball court, baseball /softball diamond, volleyball court, multi- purpose fields. Carroll Beek Community Center and Balboa Island Park — Basketball court and community center. Community Youth Center /Grant Howald Park — Basketball court, tennis courts, community center, softball and multi - purpose field. Eastbluff Park — Baseball diamond, multi - purpose field, and view of the Back Bay. Harbor View Nature Park — Natural vegetation area. Las Arenas Park - Lighted tennis court and basketball court. z Lincoln Athletic Center — Gymnasium, lighted baseball /softball diamond and multi- purpose fields. Manners Park — Multi- purpose room, baseball /softball facilities, racquetball courts, lighted tennis courts, multi - purpose fields, and an ADA equipped play area. The Oasis Center — Multi- purpose senior facility with classrooms and large multi - purpose room. Peninsula Park — Beach sited multi - purpose field, picnic and barbecue facilities, baseball/softball diamond and gazebo. San Joaquin Hills Park — Tennis courts and lawn bowling facility. San Miguel Park — Ball diamond, athletic field, four racquetball courts, basketball court and an ADA equipped play area. Theater Arts Center — Ninety seat community theater. West Newport Park — Tennis courts, racquetball courts, basketball court. 38`h Street Park — Basketball courts. NEWPORT THEATRE ARTS CENTER BACKGROUND I -6 The Newport Theatre Arts Center (Theatre) has been the site of community theatre productions since 1979. The Friends of the Newport Theatre Arts Center (Friends), a non - profit public benefit corporation, have, since 1980, managed the Theatre and offered first class theatrical productions and shows using dedicated volunteers from the community. The Friends have presented at least four productions a year, have funded their program through ticket sales and donations from the private sector, and have used excess funds to purchase theatrical equipment. The plays and shows presented by the Friends are affordable to all economic segments of this community and offer residents a unique opportunity to attend or participate in theatrical productions. The Friends represent the epitome of "community theatre" - a volunteer effort using principally non - equity performers that is self funded and offers performers of all skill levels an opportunity to develop their talents. MANAGEMENT/PRIMARY USE The City Council has, pursuant to a written management agreement, appointed the Friends as the primary user and manager of the Theatre in recognition of their dedication, skill and effort over the years. The City Council is aware that the consistent presentation of first class community theatre requires extensive pre - production use of the venue for rehearsal, set construction and related activities. The City Council has determined that the community theatre program offered by the Friends requires exclusive use of the Theatre for continuous and extended periods of time throughout the year and from year to year. As manager, the Friends are required to make the Theatre available, and to supervise its use, by other groups or organizations selected by the City (Third Party /Third Parties) for stage plays or artistic events during no less than three (3) two -week periods each year (Reserved Periods). The Friends are also required to allow and supervise use by residents and local business owners for short meetings or events of limited duration. The City Council expects the Friends, in supervising the use of the Theatre by any Third Party, to serve as a resource, if called upon, to facilitate the efforts of community groups authorized by City to present stage plays at the Theatre. RESERVED PERIODS The City, through the fotnmujtity-Recreation & Senior Services Director, is responsible for selecting the Third Party /Third Parties that will be permitted to use the Theatre to present stage plays or other artistic productions during the Reserved Periods. Third Party use of the Theatre shall be granted pursuant to a special event permit and license agreement (permit). In selecting among applicants, preference shall be given to public benefit non - profit corporations in good standing that have received a tax exempt determination pursuant to Section 501(c)(3) of the Internal Revenue Code. Since the theatre is one of very few venues in the area that is capable of accommodating live stage performances, preference shall be given to an applicant seeking permission to use the Theatre for live theatrical performances presented during at least one entire Reserved Period. The City shall use the following criteria in selecting among qualified applicants that have submitted timely applications requesting use of the Theatre at the same time during all or a portion of any Reserved Period: A. Previous experience in presenting live stage productions of a magnitude similar to that proposed in the application; B. Firm commitments from technical, artistic and support staff capable of producing a live stage play; C. The extent to which Newport Beach residents are involved in the production; D. The extent to which the production involves or generates educational opportunities for youth; E. Whether the applicant has secured the rights to produce the play and the extent to which the applicant can demonstrate the ability to pay required fees and charges. F. The potential for recurring use by the applicant. In the event that no application is submitted and approved by the City authorizing presentation of a live theatrical performance during any Reserved Period, preference shall be given to the applicant who first submits a timely application to present a cultural or artistic event that is consistent with the historical usage of the Theatre. The C-oiqi i;iu„iy, Recreation .& Senior Services Director is authorized to meet and confer with applicants who have submitted conflicting requests in an effort to determine if the applicants are willing to modify the requests to avoid the conflict. The y Re_cication,_ &. Scnior Services Director is also authorized to partially grant or modify any application to eliminate conflict or to preserve use of the Theatre for the City or for other purposes. While the Goiri ntttnity Recreation.. & Senior Services Director will generally determine Third Party use of the Theatre pursuant to the application process. However, the City Council may, upon a determination that a requesting group substantially complies with the selection criteria in A - F and at a noticed public meeting, authorize Third Party use of the Theatre for multiple or consecutive Reserved Periods subject only to execution of the required permit. PROCEDURES A. Subject to the provisions of Subsection B, any individual, group or organization requesting permission to use the Theatre during all or a portion of any Reserved Period, or for any event that requires a special event permit pursuant to Chapter 5.10 of the Newport Beach Municipal Code (applicant) shall file an application for a permit. The application shall be filed with the E= erxfltunity- Recreation & Senior Services Department no less than 45 days prior to the first date of the Reserved Period during which applicant proposes to use the Theatre and shall be accompanied by the fee established by resolution of the City Council. The application shall be submitted on forms provided by the Gomiii ±nity-Recreation& Senior Services Department, all requested information shall be provided and an individual authorized to bind the applicant shall sign the application. The applicant shall clearly specify the requested dates and times for use of the Theatre and describe, in detail, the production to be presented as well as the technical, artistic and support personnel to be involved in the production. B. In the event that the City Council has authorized use of the Theatre by a Third Party pursuant to the provisions of the "Reserved Periods" section, the Third Party shall submit the information required by Subsection A within fifteen days after the action by the City Council but is not otherwise required to comply with the procedures specified Subsection A. CONDITIONS All use of the Theatre shall be subject to strict compliance with this Policy, the application submitted, the "House Rules" (Exhibit A) and the terms and conditions of the Special Event Permit and License Agreement (Permit). The House rules and the Permit shall be provided to the applicant when the application is filed. In addition, each Permittee shall strictly comply with the following conditions: A. The Theatre shall not be used, or open for use, by any person before 8:00 a.m. or after 11:30 p.m. on any day. B. The Permittee shall take all reasonable steps to ensure that all users respect nearby residents by minimizing noise, parking and other impacts. C. The Permittee shall use the property, the Theater and the Theatre Equipment with due care and in a manner that avoids any damage, any injury to any person, and minimizes wear and tear. D. The Permittee shall comply with all applicable laws and shall take all reasonable steps to ensure that guests and invitees also comply with all applicable laws. E. The Permittee shall fully and immediately comply with all requests of the C Recreation & Senior Services Director and the Chief of Police or their employees. FEES Use of the Theatre by any Third Party shall be subject to the payment of fees to the City for the use of the Theatre (Property Fee) and to the Friends, to the extent applicable, for use of the stage and sound equipment (Equipment Fees) and skilled personnel qualified to operate the Equipment (Operator Fees). The Property Fee, Equipment Fees and Operator Fees are as specified in the Fee Schedule (Exhibit B). The Gammunity- Recreation & Senior Services Director may waive r i all or a portion of the Property Fee upon request and a showing of good cause. The Ct *rrrnitmity Rccvcc .tipn & S..c..nior_.Servlces Director shall collect, and remit to the Friends, any Equipment Fees and/or Operator Fees. [Exhibit A — House Rules] [Exhibit B — Fee Schedule] Adopted -July 27, 1981 Amended - October 22, 1984 Amended - November 28, 1988 Amended - October 22, 1990 Amended - January 24, 1994 Amended — May 22, 2001 Formerly I -18 HOUSE RULES The following rules apply to all use of the Newport Theatre Arts Center (Theatre) by any Third Party using the Theatre. A. THEATRE USE The right to use the Theatre includes only the main theater consisting of the 90 seat auditorium and stage, "green room ", entry lobby and public restrooms, box office area, two downstairs dressing rooms and bathroom, all access ways, parking area and exterior grounds. In no event shall Permittee use any office equipment or telephones owned by the Friends of the Newport Theatre Arts Center (Manager), the kitchen/office maintained by the (Manager), backstage workroom, or costume, prop and set storage rooms. Use of these areas is non - exclusive and Manager's agents may also occupy the designated areas provided they do not interfere with Permittee's use of the Theatre or the production. Only technical personnel approved by the Manager are allowed to enter the tech booth. B. MANAGERS PROPERTY /EQUIPMENT Permittee shall not use Manager's tools, costumes, props, or sets. Permittee may use the telephone provided by the City. C. SUPERVISION Access to, and use of, the Theatre shall be pursuant to the supervision of a Stage Manager or House Manager designated by the Manager. D. MARQUEE Permittee is to provide the layout for inclusion of text in the marquee and Manager approved personnel will install the lettering or supervise the installation by Permittee. Only layouts that utilize existing Theatre lettering will be allowed. The marquee will be available to Permittee only during the Use Period. E. CLEANING J' The carpeted areas and seats in the Theatre must be completely covered by Permittee during any set construction, painting or other work on the stage or in the auditorium area to protect those facilities against dust and damage. At the conclusion of the Use Period, Permittee shall return all facilities and equipment to the condition immediately prior to use by Permittee. F. SOUND MONITORS The sound monitors are permanently located and Permittee shall not move or relocate the monitors. G. FOOD BEVERAGES Food or drink is permitted only in the lobby. No food or drink may be taken into the auditorium. Permittee shall consult with Manager, and receive Manager's approval, prior to any sale or distribution of food or beverages on or from the Theatre. H. BOX OFFICE PERSONNEL Permittee shall provide box office personnel as well as tickets and/or reservation services. Permittee shall also provide any security or admission personnel. Manager may be able to supply box office personnel if Permittee makes a timely request and pays required fees. I. DECORATIONS Permittee shall not use confetti, glitter, spray paint, liquid paint, burning objects or helium balloons on the property. Permittee shall obtain Manager's approval of a decorating plan prior to installing any decorations. J. DRESSING ROOMS The dressing rooms are reserved for the use of the actors and stage personnel. In no event shall the dressing rooms be used for entertainment of guests or the storage of equipment. Smoking and alcohol are prohibited in dressing rooms. K. RIGHTS AND ROYALTIES Permittee shall provide evidence that they have applied for the rights to stage, at the Theatre, the production described in the application for permit and that all required royalties and rentals have been paid. In no event shall Permittee be allowed access to the Theatre without providing proof of rights and royalties. Permittee shall not film or reproduce any production unless and until Permittee provides evidence that publisher or owner of the performance rights has given express permission to do so. Adopted — May 22, 2001 FEESCHEDULE Effective Mav 1, 2003 through July 31 2004. A. Lighting Designer to hang, focus and program lights - $300.00 - $500.00 -or - Lighting Technician who will program existing hanging lights only and operate lights for shows - $25.00 per hour with 3 hr. minimum. B. Sound Designer to place sound equipment in locations, adjust microphones and program equipment, etc. $250 -400. C. Additional technicians to operate lights and/or sound equipment during performance -- each $20. 00 per hour w/3 hour minimum. D. Stage Manager who will monitor backstage activities and assist with matters involving use of stage and curtain only $20.00 per hour with 3 hour minimum. E. House Manager who will monitor front of house, direct ushers and assist with matters involving front of house only $18.00 per hour with 3 hour minimum. F. Ushers - $15 per usher per show, from 30 minutes before performance thru intermission. G. Lamp and lighting equipment use, including dimmer packs, computers, light board, hanging fixtures, lamps and gels - $30 per hour or part of hour, including programming time, as well as running time for show. Rate to be $36 per hour if both lighting and sound equipment are used. H. Permittee reimburse the City or Manager for all charges or costs associated with services requested by Permittee. No charge for use of small piano other than tuning charge if user wants piano tuned. Small piano moving and replacement to original location to be done by Permittee. I. Property Fee is $300.00 per day. Adopted — May 22, 2001 cy SPECIAL EVENT PERMIT REQUEST PROCESSING PURPOSE I -7 To set forth City policy concerning administration and control of special events. Special events include activities as defined by Municipal Code Chapter 5.10. Requests that include activities for which the Municipal Code requires that a permit be obtained may be included in the special event permit process. POLICY It is the policy of the City Council to ensure that the numerous special event activities permitted by the City do not negatively affect the community, that requests for permits are efficiently processed by staff, that City liability is eliminated, that all appropriate insurance requirements are met, and that costs for municipal services provided are kept at a reasonable level and recovered from the event sponsors. Affected City departments shall be notified of special event permit requests in accordance with the schedule attached and provide recommendations on how to conduct the event safely, lawfully and with a minimum negative impact on the community. It is the responsibility of the G,)fl amity Recreation & Senior Services Director to coordinate the administration of special events and to be the central contact point for residents or other event sponsors, as well as the various City Departments having influence or control over aspects of any given event. Requests for special event permit applications will be received by a special event coordinator in E' R�- R.crcati�n- ._.Scnicr_Services and routinely routed to appropriate departments for investigation. Each department will investigate the proposed event and make a recommendation for approval or denial of the event. If recommended for approval, recommended conditions for approval will also be presented. Events that include the following activities or aspects shall be additionally reviewed by the departments indicated: ACTIVITY Fireworks Tents & Canopies Requests on the Harbor Requests on the Balboa Pier Requests on McFadden Plaza Requests on the Newport Pier Requests on Public Beaches REVIEWING DEPARTMENT Fire Department - City Manager Fire Department* Building Department 'Harbor Resources Division - �Sheriffs Harbor Department Public Works Public Works Public Works .Harbor Resources Division t ,General Services Fire Dcpartmcut �Gamnnunity— Recreation & Senior Services Requests in a Public Park Department{ (General Services 'Requests to Deviate from Use Permit (Planning Department i Requests at a Commercial Location Planning Department iGarage Sales Planning Department Signs & Banners on Private Property (Planning Department Signs & Banners on Public Property -Public Works ! Amplified Sound at a Commercial Location Planning Department Amplified Sound at a Residential Location ;Police Department Temporary Street or Sidewalk Closures Public Works/ General Services Sidewalk Sales Public Works ,Use of Public Property ;Public Food Service :Use of Back Bay Drive Manager Department ment of Fish & Game< 11 Services" Works If each department reviewing a special event permit application recommends approval of issuance of the permit, a permit will be issued to the applicant listing the conditions provided by each department. The City Council shall authorize approval of any request for special event permit when: A. Required by Municipal Code. B. One or more reviewing departments recommends denial. C. The applicant desires to deviate from the conditions recommended by reviewing departments. Adopted - January 24, 1994 Amended - February 24, 1997 J I -8 BIKE, FOOT RACE AND SURF CONTEST POLICY The purpose of this policy regarding the use of City streets and beaches for conducting bicycle races, running events, surf contests and other athletic contests is to minimize the inconvenience to City residents, and to eliminate any potential City liability for injuries resulting from the event. All bicycle races, running events, surf contests and similar athletic contests shall be required to secure a Special Event Permit, comply with all of the conditions to the permit, and comply with the provisions of this Policy. Races, running events and other athletic contests using City streets shall not be conducted during the summer (June 15 through September 15). No more than twelve (12) such events shall be permitted during any calendar year. Surf contests using City beaches shall not be conducted during Memorial Day weekend or summer (June 15 - September 15). No more than eight (8) large and /or commercial events shall be permitted during any calendar year and events shall be scheduled at least three (3) weeks apart. All Surf competitions. no matter what the size, are required to register with the Recreation Senior Services Department a minimum of one month prior responsible lbr administering the to the scheduled event in order to receive approval for use of the requested location. There is no fee for registration of a surf competition, only for the Special Even Permit. if needed. All responsible parties must be able to provide upon request proof of a valid registration approval during the hours of the surf competition. The person or entity primarily responsible for administering the event must prove their ability to pay for all required City safety and maintenance services prior to issuance of any permit. Proof of ability to pay for these services shall be in the form of a cash deposit, bond, or similar instrument. The permittee shall, prior to the event, provide the City with evidence of insurance, with the City named as an additionally insured, with minimum coverage of one 1) million dollars per occurrence unless the City Attorney and City Manager determine that due to the circumstances surrounding the event, more insurance coverage is necessary. No permit shall be issued for any race, running event, surf contest or athletic contest which is sponsored or financially supported by a tobacco or alcohol company and no alcohol or tobacco shall be permitted to be dispensed or available in the event there are participants under the age of 21. Surf contest permits will be granted for specific dates only. No more than one surf contest will be scheduled per day. Surf contest permits do not allow for the exclusive use of the ocean or contest area and are always subject to blackball rules and regulations. There can only will -be a maximum of six (6) large and or commercial contests at any one location per calendar year. The Fire Department determines acceptable locations for surf contests. Adopted - February 14, 1983 Amended - November 14,1983 Amended - September 22, 1986 Amended - January 24, 1994 Amended - July 25, 2000 Formerly I -21 I -11 USE, PRIORITIES AND FEES FOR MARIAN BERGESON AQUATIC CENTER The Marian Bergeson Aquatic Center is a 50 meter pool complex located on the Corona del Mar High School campus. The Newport-Mesa Unified School District, as the legal owner of the property, has entered into an agreement with the City of Newport Beach to allow public use of the facility after official school use. This agreement has resulted due to the significant contribution to the pool construction by the City. PURPOSE OF USE The foregoing facilities and equipment therein shall be used for activities which are recreational, social or civic in character, and offer services of interest or need to the community. PROCEDURE Any group desiring to use the Marian Bergeson Aquatic Center shall make application on forms provided by the (.= omtnun -+ --_ Rccrcation _&.._Scnior_Services Department and shall provide such additional information as may be required by the Department to assure compliance with priorities. Applicants may be required to satisfy the Department that activities will be conducted in an orderly manner and that such person(s) or groups are financially able to respond to damages arising therefrom. Prior to the use of any facility, the application must have been approved by the — Recreation & Scnior Services Director or a designated representative. SCHEDULE The City of Newport Beach and the Newport-Mesa Unified School District establishes the use of the aquatic center as follows: Pool Use Criteria (As Dictated by School District -City Agreement) School Year A. 6:00 A.M. - 3:00 P.M. District use only. B. 3:00 P.M. - 6:00 P.M. _._ Joint use City/District w/District as first priority. C. 6:00 P.M. - 9:00 P.M. City exclusive use. Holidays, Summer Vacation, Saturdays A. 6:00 A.M. - 9:00 A.M. _ _. _..- ......._._____Joint scheduling w /City priority. ti B. 9:00 A.M. - 9:00 P.M. City exclusive use. Sundays A. 6:00 A.M. - 9:00 P.M. Joint City/District. (Use includes showers, restrooms and ancillary facilities.) A. All official C—emtnurrity Recreation & Senior Services /City of Newport Beach initiated and/or conducted activities. B. All official Gam unity— Recreation & Senior Services co- sponsored groups and/or activities. The aforementioned are community groups and activities which are nonprofit, self - governing, privately organized and of a recreational nature which may be brought tmder the sponsorship of the Gammunity- Recreation & Senior Services Department by application. C. Official School District sponsored programs and activities. D. Official public agency sponsored programs and activities not included in the above categories. E. Recreational, social or civic activities and/or groups (resident) promoted and sponsored by local nonprofit organizations which are open to the public and have 50% or more of memberships consisting of Newport Beach residents. F. Recreational, social or civic activities and/or groups (non- resident) promoted and sponsored by nonprofit organizations which are open to the public, not qualifying under Priority No. E. G. Private resident and non - resident use. H. Commercial or profit making groups. SPECIFICATIONS FOR AQUATIC CENTER USERS A. Determining factors of priority shall include, but not be limited to, the number of Newport Beach residents on the playing teams, recognized seasonal sports, and past contributions to facilities by sponsoring groups. This policy shall not be exclusionary to any group. Staff has the right to revoke a permit for specific times if the facility is not being used. B. Recognized seasonal sports shall be determined where at all possible one year in advance. All non - seasonal sports shall be accommodated, but scheduled secondarily to seasonal sports. Special tournaments /regional playoffs, even if off - season, shall be accommodated whenever possible. Applicable fees will be charged to the hosted group. Special events shall be applied for at least six months in advance and not more than 18 months in advance. C. Staff will coordinate and chair quarterly meetings to determine equitable use of available athletic facilities. Groups not satisfied with the results of this procedure can appeal the staff determinations to the Parks, Beaches and Recreation Commission. The Parks, Beaches an4-&, Recreation Commission designated committee members will attend two of these meetings (early fall and early spring) for the purpose of. reviewing the success of the programs, and gathering input for needed capital improvements and policy interpretations. D. The _Aquatic Center may be closed for periodic maintenance and renovation at a time determined by School District staff to be least disruptive to all parties. E. Any group claiming nonprofit status must submit, at request of staff, a copy of the group's constitution, bylaws or rules and regulations. Membership and meetings or activities must be open to the public. Fees, donations or admissions charged by the group must be limited to essential expenses of the group. The group treasurer will be required to submit a financial report following each activity when any of the above is collected. Activities shall not involve individual gain or be in the nature of a commercial enterprise. FEES AND DEPOSITS A. The fees charged for use of the Aquatic Center shall be established and periodically adjusted by a resolution of the City Council following Commission review. B. The intent of these fees shall be that the Marian Bergeson Aquatic Center be operated on a self - supporting basis. C. The C -'onin \_ ewport- Nl_esa Ln fied,.._,School District requires a custodial,.e- 4caxing fee from groups to clean. d - maintain ft€�+rtraet -f a eerxrr�c t trrtterranee;ertiee tc3 edcttn the facility hQ h_iiurig -and after a rental, rxurewr ■ir r�r rr swMN-.. .Tr I— ELYeM r- rr�isui�ran Adopted - June 25, 1990 Amended - January 24, 1994 Formerly 1 -24 I -13 DRAFT 09102 DONATION OF ART TO CITY OF NEWPORT BEACH 1. The City of Newport Beach believes that art placed in public sites or in public buildings increases the aesthetic appeal and beauty of such public sites and buildings, and of the City in general. All proposals for donations of art to the City shall be reviewed by the Arts Commission for recommendation to the City Council. 3. The responsibility of the Arts Commission is to: a. Confer with persons who have offered to donate art to the City, informing them of the donation policy, including criteria for accepting artwork and the scope of the approval process. b. Advise the City Council of the artistic merit and value of paintings, sculpture, drawings and other art offered to the City as donations. c. Advise the City Council regarding appropriate public sites or buildings for display of such art, in conjunction with the City Commission and/or Department which has responsibility for planning or maintaining the proposed location. 4. The Arts Commission shall consider the following criteria in making a recommendation for accepting a donation of art to the City: a. The art should be an original creation, and be of the highest quality and level of artistic excellence. b. The art should add significantly to the balanced inventory of the City's collection, representing a variety of style, design and media. c. The ..-t should net be illegally a fed by the dene....e f be of doubtful p the dene_must have ,.le.... °..a valid legal title to the °-' The donor should complete a standardized donation form. d. The art should be of satisfactory physical condition, be sufficiently durable as to not be easily damaged or destroyed, should not require restoration or extensive long term conservation, and should be of a physical size and weight that it can be managed in storage, transport and public display without difficulty. e. The art should be consistent with and relevant to the civic interests and broad variety of tastes within the Newport Beach community. A donation of art to the City must have a majority agreement within the Arts Commission prior to making a recommendation to the City Council. in case of c split vote of c a :ffe renee of opinion, an .,..r.- professional outside ...:11 be consulted at no Best to the City. / I� 6. Art accepted into the City collection is done with the understanding that the Arts Commission reserves the right to place the work on public display on either a permanent or temporary basis, and to store the work when not on display. No gifts will be accepted with the understanding that the art will be displayed in perpetuity. 7. Art being considered for donation to the City Art in Public Places Program must conform with to the tenets of the approved Art in Public Places Policy. 8. The City does not provide valuations or appraisals of art being donated to the City. The appfaisal value of a work should be presented by the donor to the City at the time of donation. It is the responsibility of the donor to furnish a valuation to the appropriate government tax agency. 9. The City shall assume all intellectual and photographic property rights to art donated to the City. Adopted - February 24, 1986 Reaffirmed -January 24, 1994 Reaffirmed Formerly F -23 I 148 DRAFT 09102 ART IN PUBLIC PLACES 1. The City of Newport Beach ''G:..silt recognizes the importance and desirability of enhancing and beautifying the public places within the City, by acquiring and displaying publicly accessible works of art for the cultural benefit of the City, its citizens and its visitors. 2. The City seeks to involve professional artists in City planning and design projects; to integrate artworks in City eensWaetien capital improvement projects; and to commission and/or purchase new artworks for public places. Public art can include but is not limited to permanent and temporary sculpture, murals, as well as artist- designed fountains, mosaics and tile work, banners, park benches and other street furniture, water features, bus shelters, streetlights and lanterns, kiosks, retaining walls, and/or hardscape treatments. 4 To #hy end the n#s Commission small be al ea in The responsibility of the Arts Commission is to: a. Identify and assess potential Art in Public Places.projects and sites; b. onfer with other Boards and Commissions that may be impacted by the recommended list of art projects; c. Make appropriate recommendations to City Council; d. Participate in the selection of artists for Art in Public Places projects; e. Plan and oversee implearent the artistic design process; f. Work with appropriate City Departments to ensure correct installation at the site and long term maintenance and conservation of the art work. 5. The Arts Commission shall consider the following criteria in making recommendation for an Art in Public Places project: a. The aesthetic concept, quality, scale, and form of the work of art, and its appropriateness for the site; b. A site that is easily visible and/or accessible to the general public; c. The experience, skill and ability of the artist to produce the work of art; d. The proper medium for the work of art, considering durability against vandalism, theft and weather, and the safety of the viewer; e. The cost for the City to acquire, install and maintain the work of art; f. No art objects will be considered that are mass - produced from a standard design, are reproductions of original art work, and/or are decorative or functional elements that are designed by an architect as opposed to the project artist. g. Temporary art may be acquired and placed through the same procedures as permanent works. Jc� 6. From time to time, the Arts Commission may submit to the City Manager's Office a list of projects with estimated costs. Said list is to be considered in the preparation of the next fiscal year budget. Funding for this program shall be determined by the City Council, and may be derived from the City Art in Public Places Reserve Fund, Arts Commission events, the Newport Beach Arts Foundation, private individual, corporate and foundation donations; government grants, other City funds, and/or voluntary participation by private developers. In addition, to maintain the artistic integrity of designated Art in Public Places sites/works, the Arts Commission shall review any future modifications, relocation, repairs, and/or replacement of parts or works at these sites. The Arts Commission shall consult with the original artist if possible or a recognized expert in the field, and shall then make the appropriate recommendation for modification to the City Council. Adopted - September 8, 1986 Reaffirmed -January 24, 1994 Amendcd -May 26, 1998 Amended- 2 CENTRAL LIBRARY FRIENDS MEETING ROOM BACKGROUND I -21 The large meeting room in the Newport Beach Central Library is known as the Friends Meeting Room (Friends Room). The Library Board of Trustees and the Community Library Services Department (Department) administer the Library and the Friends Room. The Friends Room is the primary source of meeting space for library programs and activities. The City has a shortage of large meeting space and City officers and employees frequently need to use the Friends Room for City business on very short notice. Moreover, public use of the Friends Room takes library staff away from their normal duties and can, if uncontrolled, interfere with the public's use and enjoyment of the library. The City needs to limit the amount and timing of the use of the Friends Room by other than Library and City officials and employees to protect the public interest. APPLICATION This Policy shall not apply to use of the Friends Room for Library or Library sponsored activities and programs and City or City sponsored activities and programs. The Library staff, the Board of Library Trustees, the City and its officers and employees and the Friends of the Library and Library Foundation when used for programs and activities directly related to Library functions and purposes; shall be entitled to use the Friends Room at any time subject only to confirming availability with the Peen Library Services Director. The purpose of this Policy is to establish: A. Procedures for processing and approving or disapproving requests from private persons, groups or organizations for permission to use the Friends Room; B. Priorities for the use of the Friends Room to ensure its availability to the City and its officers and employees and to resolve any conflict related to requests for use by others; and C. Standards and criteria for the use of the Friends Room to ensure there is no conflict with the public's use of the Central Library and no significant impact on the workload of Department staff. 1 I -21 PROCEDURE Any person, group or entity seeking permission to use the Friends Room (applicant) shall submit an application on the form provided by the Department. The applicant shall provide all information requested in the application and such additional information as may reasonably be required by the IOepaa-ta t Library Services Director to enable him /her to determine if use by the applicant will comply with this Policy. Applications shall not be considered complete unless accompanied by required fees and proof of insurance. No person, group or entity shall be entitled to use of the Friends Room unless their application has been approved by the De aFtm n Library Services Director or his /her designee. No application shall be approved within one year after the applicant's failure to comply with the standard conditions of use or any special conditions imposed by the Department Director. No application shall be approved until the applicant establishes that any fees, donations or admissions charged for use of the Friends Room will be for non - profit fundraising purposes or limited to defraying the actual costs and expenses of the activity or program for which the application is submitted. STANDARD CONDITIONS TO USE Applications for use of the Friends Room are approved subject to permittee's compliance with the following standard conditions to use: A. The use of alcoholic beverages is prohibited unless expressly approved in writing by the Director and subject to the approval of the Alcoholic Beverage Control Board. B. Smoking is prohibited in the Friends Room, and the entire Library facility, including restrooms. C. At least one (1) adult shall be present in the Friends Room for every twenty (20) minors in attendance. Each adult necessary to maintain the required adult /minor ratio shall remain in the Friends Room for the duration of the permitted use. D. No person shall interfere with the normal use and activities of the Library by way of noise, disturbance or other activity. E I -21 E. Groups of one hundred (100) or more persons shall be required to provide proof of off -site parking availability (off -site parking plan) prior to approval of the application and shall strictly comply with the parking plan. F. Meetings or activities conducted at the Friends Room may not be advertised or promoted as City or Library sponsored activities. All materials used for advertising or announcing a meeting or activity to be conducted at the Friends Room shall be submitted to the Depart R Library Services Director at least ten (10) days prior to the use for the sole purpose of determining if the material complies with this condition. The Pepa� -A Library Services Director shall notify the permittee of his /her determination that the material complies or does not comply with the condition within two business days after submittal. G. Meetings or activities in the Friends Room shall not exceed 150 persons. H. The Friends Room shall not be used for private social functions such as weddings, music rehearsals, etc. unless rehearsals are necessary as part of a Library or City sponsored public concert, or production which is scheduled to be performed in the Friends Room. I. Use of the Friends Room is limited to 9:15 a.m. to 8:30 p.m. Monday through Thursday and 9:15 a.m. to 5:30 p.m. Friday through Saturday. J. The provision of insurance should be general liability naming the City and its officers agents, officials, mid employees and volunteers as additional insureds, providing coverage in the amount of not less than $1,000,000 for any claim, loss, injury, damage or other casualty that is in any way related to the use and /or occupancy of the Friends Room by the permittee authorized to use the Friends Room pursuant to this Policy. K. The agreement of the permittee to defend, indemnify and hold harmless the City and its officers and employees with respect to any claim, loss, or injury that arises out of, or is in any way related to permittee's use and occupancy of the Friends Room. L. Applications for reservations may be made no more than 90 days in advance and no more than once every 90 days. 3 I -21 PRIORITIES OF USE A. FIRST PRIORITY 1. Any official Newport Beach Public Library co- sponsored and /or conducted programs and activities that are directly related to library functions and purposes. 2. Any meeting or activity conducted by any organization of which the City is a member and whose purpose is consistent with the educational and informational function of the Library. B. SECOND PRIORITY Use of the Friends Room may be granted by the QLpa-rtn t Library Sen iccs Director to those persons, organizations or entities listed below on a first come first serve basis: 1. Sponsored educational or informational programs and activities of other state or local public agencies such as local public schools or special districts. 2. Recreational, social or civic organizations and /or groups that are promoted and sponsored by City residents or City non - profit organizations that are open to the public and have fifty percent (50 %) or more of memberships consisting of Newport Beach residents. 3. Recreational, social or civic organizations and /or groups that are non- resident promoted and sponsored by non - profit organizations that are open to the public, but do not qualify under B.2. 4. Schools, colleges, hospitals or other similar civic groups not qualifying under the definition of non - profit. Non - profit status is defined as an organization that is so defined by the Internal Revenue Service Section 501C3 and has a state of California Tax Identification Number. FEES, DEPOSITS AND CANCELLATION PROCEDURES Fees may be charged for the use of the Friends Room. Fees shall be established by Resolution of and periodically adjusted by the City Council on the recommendation of the Board of Library Trustees. Fees shall be limited to an amount necessary to defray 4 I -21 the costs associated with the administration of this policy and the maintenance and repair associated with the public's use of the Friends Room. Adopted - July 14,1980 Amended - November 28,1988 Amended - October 28,1988 Formerly 0-1 Amended - February 27,1995 Amended - February 24,1997 Amended - May 8, 2001 5 PUBLIC USE OF CITY FACILITIES PURPOSE I -25 City facilities, which include parks, playing fields, gymnasiums, community rooms and swimming pools, are available to the public for civic, social, educational, athletic and cultural activities. It is the intent of this Policy to provide use regulations and application and scheduling procedures to accommodate all groups that wish to use City facilities. PROCEDURE A. Applications to use the City facilities must be made on forms provided by the Community Services Department. Applicants must provide all information as may be required by the Department to assure compliance with the requirements and regulations of this Policy. B. Applicants will be required to pay a security deposit in an amount that will promote use of the Ctar >}+m+n4vRecreation_.fi.._Senigr Services facilities in an orderly manner without damage to the facilities. Security deposit will be refunded upon inspection of facilities and confirmation that no property damage has occurred. C. Applicants will be required to acknowledge that neither the City nor the Recreation & Senior Services Department assumes any liability for injury or loss of personal property. Prior to the use of the facility, the application must have approval of the E'oinmuiiita•Rccrcatiun & Senior Services Director /City Librarian or designated representative, D. Approval or denial of an application will be provided within five working days of receipt of a completed application. E. Reservations for use of C o ,..., ' Recreation K Sc nior Services facilities may be made up to six months in advance, but no later than five working days before the event. Any organization using City facilities on an ongoing basis shall notify the E rrrrTm+rHyRecreation_& Senior Services Department when there is a change of officers or of organizational policy. F. The City of Newport Beach is not liable for any and all accidental injury to any and all persons or loss or damage to group or individual property. When it is deemed to be in the best interest of the general public, the City of Newport Beach will require the permittee to furnish a Certificate of Insurance naming the City of Newport Beach as an additional insured. The amount of the insurance shall not be less than $1,000,000 per occurrence of commercial general liability insurance. G. A contract shall not be transferred, assigned or sublet. All contracts will be issued for specific facilities and for specific hours, and the premises must be vacated as scheduled. M H. The application must be completed and signed by an adult aye 21 and over m;e o F the adults who will attend, and- supervise and be responsible the entire event or activities. Proof of residencv may be required at the time of application in order to receive the resident rate. REGULATIONS AND RESTRICTIONS All uses of £ unityRecreation & Senior Services facilities will be subject to the following regulations and restrictions: A. Alcoholic beverages are prohibited and shall not be permitted in or on any municipal facilities operated by the CYmnityRecreation & Senior Services Department, except beer and wine may be served for special occasions at the Oasis Senior Center multi- purpose room when done in compliance with State Alcohol Beverage Control regulations and approved in writing by the Gorair trrityRecreation & Senior Services Director. Approval to serve beer and wine at the Oasis Senior Center shall not be deemed to approve service of alcohol in violation of Section 25604 of the Business and Professions Code. The Ga r Recreation & Senior Services Director will require the permittee to pay City costs to provide additional security. B. Smoking is prohibited in all City facilities including restrooms. C. For all indoor facility rentals involving young people, 18 years and under, there shall be at least one adult for every 20 minors, or increments thereof, in attendance, who shall remain in the facility for the duration of the activity. D. No group's activities shall interfere with the administration of the GamittueityRecreatioll & Senior Services Department. E. Non - profit 501 (c) (3) groups may use the facility for fundraising activities and charge entrance fees and collect donations provided that a detailed plan of the event, including the expenses, marketing plan and procedure for collecting fees, is submitted with the rental application. The group treasurer will be required to submit a financial report following any such activity. F. Facilities and equipment are to be left in the same condition as they were prior to the rental. The permittee is responsible to pay for any damage to property or loss of property. A fee equal to total replacement cost will be charged. It shall be the responsibility of the permittee to see that unauthorized portions of the facility are not used. Continued or repeated use of City facilities will be contingent upon care of the facility, property and equipment, and observance of all approved rules and regulations. G. No gambling of any kind shall be conducted on, or in, City facilities, and the permittee shall insure that no disorderly or illegal conduct shall be allowed in any facility. H. The use of public address equipment will be limited to that provided by the facility, unless written approval has been secured by the feiRrtxmityRecreation & Senior Services Department through a Special Event Permit. /J I. Private groups wishing to collect fees, donations or admission charges will be considered commercial users. J. The capacity of City facilities shall not be exceeded. K. Storage space will not be granted to any ongoing activity or uses. L. Facilities are not available for reservations on the following holidays: Christmas Eve, Christmas Day, Easter, President's Day, Independence Day, Labor Day, Memorial Day, New Year's Eve, New Year's Day, Thanksgiving and Veteran's Day. M. All persons using the facilities shall observe and obey regulations of this policy, the rules of the E-o;;,fteffl- 9Recreation & Senior Services Department and all applicable City, State and Federal laws, rules and regulations. FEE CLASSIFICATIONS — PRIORITIES OF USE Permission for use of City facilities shall be granted on a first come first served basis, subject to the following priorities: A. All official Corrirrtut4yRccrcatiun... &___.Sei i_gr Services Department initiated and/or conducted activities, including those of the Friends of Oasis at the Oasis Senior Center. B. All official City of Newport Beach activities. C. All official City co- sponsored groups and/or activities such as community groups and activities which are non - profit, self governing, privately organized and of an educational nature which may be brought under the sponsorship of the Goninit tyReercation_b Senior Services Department. D. Official public agency sponsored programs and activities not included in A, B, and C above. E. Recreational, social or civic activities of groups which are resident promoted and sponsored by local non - profit* organizations which are open to the public and have 50% or more of memberships consisting of Newport Beach residents. F. Recreational or social activities of private Newport Beach residents which are not open to the public. G. Recreational, social or civic activities and/or groups which are non - resident promoted and sponsored by non - profit organizations which are open to the public, but not qualifying under D above. H. Schools, colleges, hospitals and other similar civic groups not qualifying under the definition of non - profit. I. Others. * Non-profit status is defined as an organization that is so defined by the Internal Revenue Service, § 501(c) (3) and has a State of California Tar Identification Number. FEES, DEPOSITS AND CANCELLATION PROCEDURES Fees may be charged for the use of City facilities and shall be established and periodically adjusted by the Parks, Beaches and-&, Recreation Commission and approved by the City Council. Fees are imposed to cover overhead, processing, deposits, maintenance and replacement costs for application and scheduling and maintenance of the facilities. A. A security deposit will be required for all room rentals. All or a portion of the deposit may be retained by the Cammuxit Recreation & Senior Services Department after inspection of the facility by the Goyim ttnityRecreati.on & Senior Services Director or a designated representative and a determination that the facility has not been left clean and/or in good repair. B. A separate additional cleaning fee will be charged for rental of the Oasis Senior Center multi - purpose room. C. No fee or deposit shall be charged for use of City facilities by the City of Newport Beach, the Friends of Oasis when utilizing the Oasis Senior Center, during normal business operational hours, or events co- sponsored by the City of Newport Beach or its departments, with the exception of set -up charges and fees for lighting usage. D. Cancellations for any facility other than the Oasis Senior Center multi - purpose room may occur seventy -two hours prior to the scheduled use of facilities without forfeiting fees collected by the City, with exception of a City service refund processing fee. Cancellations with less than seventy -two hours notice will be charged a cancellation fee established by resolution of the City Council. In the event of cancellation by the City, notice will be given as far in advance of the scheduled use as possible. E. Cancellation of rentals by users for the Oasis Senior Center multi - purpose room that occur less than thirty days prior to the scheduled use of the facility will be charged 25% of the rental fee. Cancellations with less than seventy -two hours notice will be charged the entire rental fee. Adopted — May 26, 1998 Amended - May 8, 2001 Amended - April 23, 2002 r I -26 TEMPORARY SIGNS WITH SPONSORSHIP RECOGNITION IN CITY PARKS AND BEACHES Temporary signs which recognize sponsorship of City sponsored or co- sponsored sports programs may be posted in a City park or beach when the signage complies with the criteria set forth in this policy. The Director of the F- Offi+rm+rity Recreation & Senior Services Department will require that sponsorship signs meet the following guidelines and that any other approvals which may be required are obtained: A. The signage must relate to a program sponsored or co- sponsored by the City of Newport Beach. B. The signage must: 1. Not exceed twenty -four (24) square feet in size; 2. Be posted in a location not visible from public streets and pre- approved by the F=oirrHtunitv-Recrcation & Senior Services Department; 3. Be posted only during the designated priority season for that sports group; 4. Be aesthetically appealing, with consideration for the surrounding area. C. No signage for alcohol or tobacco is permitted. D. The applicant is responsible for placement and removal of signage and for storage, damage, theft, or loss of any sign posted. Adopted — September 14, 1998 LIBRARY POLICY FOR USE OF LIBRARY GROUNDS The City of Newport Beach Libraries have been designed and are operated for the purpose of meeting the educational, cultural and literary needs of Newport Beach residents. The Library has received requests from the public to engage in Expressive Activity such as soliciting signatures for ballot initiatives, distributing leaflets or flyers, or providing information, on matters of community interest. The Board of Library Trustees recognizes the public's interest in communicating with Library customers in a manner that does not obstruct or interfere with the customers' desire to use the Library facilities and grounds for quiet reading, research, and contemplation. The Board of Library Trustees desires to adopt reasonable regulations: 1. To accommodate the public's desire to engage in Expressive Activity outside City Libraries and on City Library grounds in a manner compatible with Library purposes; 2. To protect Library customers' rights to access and use City Libraries and Library grounds for their intended purposes; 3. To maintain City Libraries and Library grounds in a manner that is without visual clutter, that detracts from and is incompatible with the design of the Library, and use of Library grounds; 4. To maintain safe and convenient circulation for customers with walkway access directly into City Libraries and Library grounds without obstruction or interference, and 5. To comply with the State and Federal Constitution and interpretive case law so as to allow for Expressive Activity in a manner which is compatible with the intended purpose of City Libraries without suppressing speech on the basis of content. THEREFORE, the Board of Library Trustees adopts the following rules and regulations for Expressive Activity at City Libraries: 1. All persons desiring to use the Expressive Activity Area shall report to the Library Services Director or designee prior to use, and if the use includes solicitation, shall be required to show proof of compliance with permitting requirements of the City's Solicitation Ordinance (Chapter 5.42 NBMC). All solicitations shall comply with the City's Solicitation Ordinance including sections pertaining to the time, place, and manner of solicitation. 2. Expressive Activity inside City Libraries is prohibited. All Expressive Activity outside City Libraries, on Library grounds shall be limited to the designated Expressive Activity Area shown in the attached Exhibits "A ", "B ", "C" and "D ". 3. Only one (1) chair and one (1) small table, not to exceed three feet by three feet (3' by 3'), are permitted. No other tables, chairs, umbrellas, or other furniture are permitted. 4. Posters not to exceed six square feet in size are permitted so long as posters are held by a person or placed on, leaned against or hung from the permitted table. 5. The benches, bike racks, public telephones and book drops located within the Library grounds are intended for Library customer use only. Access to the use of City Libraries and Library grounds by customers shall not be obstructed in any manner. 6. Loud talking, shouting, or yelling in a manner that is unreasonably disruptive to use of City Libraries and Library grounds by customers and other person(s) is prohibited. Person(s) using the Expressive Activity Area shall not approach customers outside the designated area. 7. Commercial activity is prohibited. No peddlers or vending of any merchandise or services is permitted. 8. Banners may be hung on the Library facade to publicize Library and Library support group events only. They must be hung by City personnel, cannot exceed eleven feet ten inches by four feet (11' 10" by 4') with nine (9) grommet holes in the top. Banners can be hung no more than five (5) days before the event and must be removed the day after the event. All banner designs must be submitted to the Library Services Director for approval at least six (6) weeks prior to the event. Adopted November 16, 1999 Revised March 18. 2003 L. /EMCmiOion/PO4cy B Procedares&ibrary, Policy For Use of Library Grounds.doc i � STATEMENT OF INVESTMENT POLICY PURPOSE F -1 COU1NCiL AG N A PLO. ►� � � 03 To set forth the City's policy concerning the investment of temporarily idle funds. It is the policy of the City to invest funds not required for immediate expenditures. Investments will be in compliance with governing provisions of law and the policy contained herein. Primary investment goals are security of principal, adequate liquidity maintenance, and yield, in that order. Investments shall be placed only in securities as outlined below. The balance between various investment instruments may change in order to provide the City with the best combination of yield, liquidity, and a consideration for other factors, such as placement of an appropriate percentage of available investment funds locally. It shall be the main responsibility of the City Council, in adopting this policy and reviewing the investment holdings on a monthly basis, to preserve the investment principal. INVESTMENT AUTHORITY Under the direction of the City Manager, the investment authority has been delegated to the Director of Administrative Services, who is responsible for administration of the City's investment program, and who shall thereafter provide a monthly report regarding the status and changes in the City's investment portfolio to the City Council. This authority shall be renewed annually as part of the review and update of this Policy. In addition to the monthly investment report that is submitted to the City Council, the Administrative Services Director shall provide more detailed investment information to the City Council as requested. The City Council shall be briefed directly by the City's investment advisors on a quarterly basis whenever possible. Sections 53600 -53601 of the California Government Code provide basic investment limits and guidelines for government entities. In the event an apparent discrepancy is found between this policy and Sections 53600- 53601, the more restrictive parameters will take precedence. FINANCIAL INSTITUTIONS The City shall not deposit funds with any financial institution not receiving a minimum overall satisfactory rating for meeting the credit needs of California Communities in its most recent evaluation ( §53635.2). LIQUIDITY Sufficient funding to accommodate at least two- week's projected cash outflow is to be maintained in immediately available investments, such as the State Local Agency 1 of 8 F -1 Investment Fund, maturing certificates of deposit, or similar liquid instruments. An analysis of cash flow must be conducted at least weekly to serve as the basis for determining appropriate maturities for investments. At no time shall the liquid cash on hand be less than 5 percent of the City's total investment portfolio. For purposes of this policy, cash on hand includes all cash and investments accessible within 48 hours. ACCEPTABLE INVESTMENT INSTRUMENTS The following are types of investments made by the City and the guidelines for investing in each. In all cases, investments shall be made in the context of the "Prudent Man" rule, spelled out in the California Government Code, Section 53600.3 as follows: "When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the agency. Within the limitations of this section and considering individual investments as part of an overall investment strategy, investments may be acquired as authorized by law." In this light, the City of Newport Beach does not purchase or sell securities on margin. Additionally, any institution, which holds either the collateral or the investment instruments themselves in safekeeping for the City, must maintain at least one billion dollars ($1,000,000,000) in assets. A. Certificates of Deposit Only fully collateralized certificates of deposit with FDIC insured institutions will be utilized in investment of City funds. Government securities having a market value of 110 percent of the total amount of investment are acceptable as collateral. Noncollateralized CD investments may be made in amounts less than $100,000 so long as they are fully insured by the FDIC. Not more than 10 percent of the City's investment portfolio shall be invested in certificates of deposit with any one institution. CD's will not be placed for a period of longer than one year. Further, an institution must meet the following criteria to be considered by the City: 2of8 F -1 1. The institution must maintain at least $1 billion in assets ($100 million for fully insured CD's of $100,000 or less). 2. The institution must have been in business at least three years. 3. The institution must have a net worth to asset ratio of at least 6 percent. 4. The institution must place and maintain on file with the City an audited financial statement not more than one year old. 5. Interest shall be paid to the City on a monthly basis. B. Negotiable Certificates of Deposit As a matter of policy, the City invests in Negotiable Certificates of Deposit only with U.S. Banks whose underlying securities are rated A -1 or P -1 by one of the top two rating agencies and having assets in excess of $10 billion, so as to insure security and a large, well - established secondary market. Ease of subsequent marketability is further ascertained prior to initial investment by examining currently quoted bids by primary dealers and the acceptability of the issuer by these dealers. No one issuer shall exceed more than 10 percent of the portfolio, and maturity shall not exceed one year. The California Government Code Section 53601 limits investment in negotiable certificates of deposit to 30 percent of the portfolio. C. Bankers Acceptances The City may invest only in Bankers Acceptances issued by the 100 largest banks in the world, which are eligible for purchase by the Federal Reserve System, the short term paper of which is rated at the highest category by Moody's and Standard & Poor's. In the case of foreign banks, the Bankers Acceptances must be written by their U.S. branches. Maximum maturity shall be 180 days. No more than 30 percent of the City's overall investment portfolio shall be placed in Bankers Acceptances, with no more than 10 percent of the City's portfolio invested in the banker's acceptances of any one commercial bank. D. U.S. Treasury Issues The City may invest in treasury notes, bills and bonds. Maximum maturity of any U.S. Treasury issue shall be five years. 3of8 F -1 E. Securities of Federal Agencies and Federal Instrumentalities Securities of this type that are acceptable for the City's investments are Federal National Mortgage Association, Federal Home Loan Bank notes, Federal National Mortgage Association notes, Federal Farm Credit Bank notes, or any other U. S. Government Agency security. F. Commercial Paper The City may only invest in commercial paper issued by large, exceptionally well - established firms (firms with assets greater than $1 billion and their subsidiaries) organized and operating in the United States with the highest Moody's, or Standard & Poor' ratings (Al /Pl). Commercial paper shall be used solely as a short -term investment not to exceed 270 days. No more than 25 percent of the City's portfolio may be invested in commercial paper. Investment in commercial paper of any one issuer shall not exceed 10 percent of the portfolio. G. Repurchase Agreements ( Repos) and Reverse Repurchase Agreements Repos and reverse repos shall be used solely as a short -term investment not to exceed 30 days. The institution from which the City purchases a Repo must deliver adequate collateral to the City's safekeeping account (either directly or through a third party safekeeping agent), consisting of U.S. Treasury or Agency securities at the rate of 102 percent of the face value of the repo. The amount of this collateral must be sufficient to compensate for fluctuating market conditions. Repos will only be purchased from Primary Dealers. The City must own assets for more than 30 days before they can be used as collateral for a reverse repurchase agreement. No more than 10 percent of the portfolio can be involved in reverse repos. H. Passbook Savings Accounts Savings accounts may be used as a repository for customer deposits, or for similar purposes. Consistent with the requirements for CD investments, funds deposited in savings accounts must either be FDIC insured or collateralized. I. Local Agency Investment Fund (LAIF) (State of California) State Regulation of LAIF is set forth in California Government Code Section 16429.1. The current limit on any one City investment in this fund is $40 million, and the number of transactions (deposits or withdrawals) is limited to 15 per 4of8 F -1 month. The City's participation in LAIF shall conform to State Regulation. In general, it is the City's intention to use investment in LAIF as a temporary repository for short -term funds needed for liquidity purposes. The Administrative Services Director shall maintain on file appropriate information concerning LAIF's current investment policies, practices and performance; as well as its requirements for participation, including, but not limited to, limitations on deposits or withdrawals and the composition of the portfolio. J. County Investment Funds Los Angeles County provides a service similar to LAIF for municipal and other government entities. This Fund is available to certain cities outside of Los Angeles County, including Newport Beach. Investment in this pool is intended to be used as a temporary repository for short -term funds used for liquidity purposes. At no time shall more than 5 percent of the City's total investment portfolio be placed in this Pool. The Administrative Services Director shall maintain on file appropriate information concerning the county pool's current investment policies, practices and performance; as well as its requirements for participation, including, but not limited to, limitations on deposits or withdrawals and the composition of the portfolio. The City shall not invest funds with the Orange County Pool. K. Medium Term Corporate Bonds /Notes Investments of this type will only be in corporations rated AA or better by nationally recognized rating services. Maximum term to maturity for individual securities shall not exceed four years. No more than 30 percent of the City's investment funds shall be placed in securities of this type. L. Mortgage- backed Securities and Asset - backed Securities Investments in securities of this type are limited to mortgage- backed pass - through securities issued by a US government agency; or consumer receivable pass- through certificates or bonds. Securities eligible for investment under this subdivision shall be issued by an issuer having an "A" or higher rating for the issuer's debt as provided by Moody's Investor Services and S &P. The security itself shall be rated in a rating category of "AAA" or its equivalent or better by Moody's Investor Services and S &P. The maximum final stated maturity of any security of this type shall be five years. No more than 20% of the City's investment funds shall be placed in securities of this type. 5of8 F -I M. Municipal Bonds California Municipal bonds rated AAA, or AA and insured, are acceptable investments for the City. Not more than 15 percent of the portfolio shall be in investments of this type. N. Money Market Funds The City may invest in Money Market Funds subject to the following constraints. Investment in these funds is primarily intended for short -term "sweep account' purposes, not for longer -term investments. 1. Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec. 80a -1.) 2. The company shall have met either of the following criteria: a. Attained the highest ranking or the highest letter and numerical rating provided by not less than two nationally recognized statistical rating organizations. b. Retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than ten years' experience managing money market mutual funds with assets under management in excess of one billion dollars ($1,000,000,000). 3. The purchase price of shares of beneficial interest purchased shall not include any commission that the companies may charge. 4. No more than 20 percent of the City's investment portfolio shall be invested in money market funds. 5. The City shall invest only in Money Market Funds that have a policy of maintaining a constant daily net asset value per share of $1.00. PROHIBITED INVESTMENTS Consistent with California Government Code 53601.6, inverse floaters, range notes, mortgage derived interest -only strips, or any security that could result in zero interest accrual if held to maturity are specifically prohibited, except to the extent that they are F -I shares of diversified management companies registered under the Investment Company Act of 1940. The City shall not purchase any security rated Al and or A+ or below if that security has been placed on "credit watch" for a possible downgrade by either Moody's Investor Services or Standard and Poor's. Investments not specifically approved by this policy are prohibited. ASSET /INVESTMENT MANAGEMENT AGREEMENTS The City may employ the services of asset/ investment management companies. Such companies must have a history of producing no losses and relatively high net returns. They must also be well established and exceptionally reputable. Members of the staffs of such companies who will have primary responsibility for managing the City's investments must have a working familiarity with the special requirements and constraints of investing municipal funds in general and this City's funds in particular. They must contractually agree to conform to all provisions of governing law and the collateralization and other requirements contained herein. At no time shall more than 30 percent of the City's total investment portfolio be placed in any one investment management account. In order to implement this requirement, the City's portfolio assets will be reallocated annually among its investment managers. SAFEKEEPING /THIRD PARTY CUSTODIANS All cash and securities in the City's portfolio, including those that are being managed by private sector asset /investment management companies, shall be held in safekeeping in the City's name by a third party bank trust department, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. The City will contract separately with major banks or other well - established, reputable financial institutions, which provide custodial services to maintain custody of cash and securities in the City' portfolio. In the case of a major financial institution, the City may have an asset/ investment management relationship, and a custodial relationship, with the same entity. However, the services must be provided by separately managed departments within that entity, and the City's assets must be held in the City's name completely separate and distinct from the assets of the institution and from all other portfolios managed by the institution. All securities will be received and delivered using standard delivery versus payment (DVP) procedures, the City's safekeeping agent will only release payment for a security after the security has been properly delivered. The only exception to the foregoing shall be depository accounts and securities purchases made with: (i) local government 7of8 F -1 investment pools; and, (ii) money market mutual funds, since the purchased securities are not deliverable. BOND PROCEEDS The investment of bond proceeds will be made in accordance with applicable bond indentures. RATING AGENCY CHANGES In the event a security held by the City is the subject of a rate drop which brings it below accepted minimums specified herein, or the security is placed on negative credit watch, where downgrade could result in a rate drop below acceptable levels, the investment advisor who purchased the security will immediately notify the Administrative Services Director or Deputy Director of that fact. The course of action to be followed will then be decided on a case by case basis, considering such factors as the reason for the rate drop, prognosis for recovery or further drop, and market price of the security. The City Council will be advised of the situation and intended course of action by e -mail or fax. REPORTING REQUIREMENTS In addition to the Monthly Investment Report, the City Council and City Manager shall receive a detailed quarterly listing of all investments in the City portfolio. The report must show the type of investment, issuer, date of maturity, par and dollar amount of deposit /investment, and rate of interest. Quarterly reports from outside investment managers must also include market valuation of assets under their management and the source of that valuation, and shall also include a statement of compliance with investment policy. Current ratings of non - government securities, either Moody's or Standard & Poor's, will be included. In his report to Council, the Director of Administrative Services shall include a statement denoting the ability of the City to meet its expenditures for the next six months, and shall also include a statement of compliance with investment policy for assets under his direct management. In addition, the City Council shall be notified whenever 5 percent or more of the total portfolio is invested, withdrawn, or moved from one Investment Advisor or Pool to another. RM F -20 CONTRACTS WITH FORMER CITY EMPLOYEES PURPOSE To establish a city policy regarding contracting with former city employees. POLICY When not more than 5 years has passed since a person who is a former City employee has left service with the City: 1. All professional services contracts with former city employees or temporary employment contracts with retiring or former city employees shall require approval of the City Council 2. Council approval shall also be required for professional services contracts with a corporation or other business entity owned or operated by a former City employee or that employs a former City employee. Adopted - November 10, 1997 Amended - March 9,1998 Amended - March 22,1999 Amended -- April 8, 2003 Formerly J -1 1 L -16 TEMPORARY BANNERS EXTENDING OVER THE PUBLIC RIGHT -OF -WAY FINDINGS AND PURPOSE Temporary banners and signs pose risks to the public in the form of potential physical obstructions in or over the right of way and by distracting an individual who otherwise would, and should, focus on other users. The City Council also finds that, in the absence of the size and number limits specified in this policy, temporary banners or sign could reduce property values, adversely impact land uses, and interfere with the recreational objectives of visitors to the City of Newport Beach. A total prohibition on the installation of temporary banners and signs is appropriate with the exception of the provisions of this Policy and Chapter 20.67 of the Newport Beach Municipal Code because there are adequate alternative means of communication for those wishing to engage in commercial or non - commercial speech except for temporary real estate signs and non - profit groups organizations conducting community wide events co- sponsored by the City of Newport Beach and open to the general public. Finally, the City Council has determined that the restrictions contained in this policy and the provisions of Title 20 of the Newport Beach Municipal Code are the least restrictive means available to accomplish the public safety, economic and aesthetic objectives of the City Council. GENERAL PROVISIONS Temporary banners and signs shall not be permitted within or over any public street or pedestrian right of way with the exception of temporary real estate signs as specified in Chapter 20.67 of the Newport Beach Municipal Code and banners notifying the general public of a community wide event, open to the general public without charge, conducted by a non - profit corporation or organization, and co- sponsored by the City of Newport Beach. Temporary banners and signs shall be installed in strict compliance with the provisions of this Policy and any conditions imposed on the permit by the Public Works Dire, torUtilities Director. PERMIT PROCESS A. Except as provided in Title 20 of the Newport Beach Municipal Code, no person shall install any temporary banner or sign within any public right of way without first obtaining a permit issued by the Public Works Director Department. 1 L -16 B. Applications for a temporary banner permit shall be submitted to the Public Works Pireetor Department on a form supplied by the City, and prior to 30 days of planned installation date. C. The Public Woi-ks Utilities Director shall determine if the application complies with the standards specified in this policy. D. The Utilities Director shall approve /deny /recommend City Council approval of the application within five (5) working days. E. The Public Utilities Director shall approve the permit if the application conforms with the standards contained in this policy. F. The -5 Utilities Director shall deny the permit if the application does not conform to the standards in this policy and shall give the applicant written notice of, and the reasons for, the denial. G. Permittee shall submit a $300.00 refundable security deposit to be applied to any damages, repairs to standards or poles not corrected by permittee within 14 days of banner removal or any special services required by City. H. The contractor shall agree to indemnify and hold harmless the City of Newport Beach. I. The contractor shall maintain a minimum of $1,000,000 in liability insurance from a company with a Best's Key Rating Guide parameter of "A" or better and a financial size category of "VIII" or higher. 6911►11►19TS9169 A. Manner of Installation. 1. Permittee shall install no more than one hundred (100) banners; 2. Banners shall be no more than 2.5 feet wide and 8.0 feet high and approved by the Utilities ;Tzsie the I -iblic Works Department. Wind load calculations, determined by a registered engineer, will be required for banners greater than 20 square feet; 2 L -16 3. Banners shall not encroach on or above any portion of a right of way utilized by motor vehicles; 4. No more than one (1) banner shall be installed on any pole or standard and banners may not be installed between poles or standards; 5. The banners shall contain only the name of the permittee and the date, time and the name of the event to be conducted by the permittee; 6. All anner brackets must be mounted at least fourteen (14) feet above the ground surface; 7. All banner brackets must be installed using stainless steel band clamps and the brackets must be sufficiently strong to withstand wind -load generated by ninety (90) mile per hour winds; 8. Poles or standards must be wrapped with forty five (45) ml thick black rubber sheet or other pre- approved material under all steel brackets and clamps and no portion of any bracket shall be in direct contact with the surface of any street light pole or standard. In addition, all street light pole(s) being used must be inspected and approved by the Utilities nUbli - Works Department; 9. Banners shall be installed only at locations specified on the permit; 10. Permittee shall install and remove banners in strict compliance with the traffic control, signage and warning device criteria specified in the WATCH handbook and /or the Caltrans manual of traffic control; and 11. If more than one permittee requests the use of the same street light pole(s) at the same time, the City may require removal of some of the banners to allow other organizations to install banners authorized under City policies. B. Time of Installation. 1. Permittee shall contact the City Electrician of the Public Works Utilities Department of the City of Newport Beach at least forty eight (48) hours prior to the installation of any banner pursuant to the permit; 3 L -16 2. All banners and supporting material shall be removed within thirty (30) days after the date of installation; 3. Banners may be installed only between September 1 and May 31. C. Place of Installation. 1. Banners shall only be installed on City owned poles and standards; 2. Banners shall not be installed on any pole or standard which could create sight distance problems for pedestrian or vehicular traffic; 3. Banners shall not be installed on poles or standards in any residential district. 4. Banners shall only be installed at the approved locations indicated on the plan submitted with the banner application. Adopted - January 24,1994 Amended - February 26,1996 Amended - February 24,1997 Amended - May 8, 2001 Formerly M -4 11 L -20 WATER RATES A. The City's water rates shall provide sufficient revenue to offset the following costs: 1. Water purchased from the Metropolitan Water District (MWD) through Coastal Municipal Water District of Orange County. 2. Water purchased from the Orange County Water District. 3. Operation and maintenance of the water system. 4. Water system betterments and improvements. 5. Transfers to the General Fund for administrative support. 6. Water for sewer, water main, and storm drain flushing, and fire fighting. 7. System losses. S. Operating reserves. Water rates shall not be used to offset costs of City department activities not directly related to the cost of providing water. In the case of overlapping responsibilities and activities, the City Manager or the City Manager's designee shall review and recommend to the City Council activities or responsible fees directly attributable to the cost of providing water. 7 The desired unappropriated water Cued reserve balance should , ld not .,need L the cost ofEReserves - See Policy F -2 Reserves/ Designations of Fund Balance. 1 L -20 ._ C. The City will attempt to set water rates and utilize reserves in a manner that will facilitate uniform rate increases over the long term rather than sporadic or large increases. D. Water rates shall be reviewed annually. Additional review of the water rates may be performed in the event special circumstances such as unanticipated MWD rate increases or unanticipated major capital expenditure needs occur. Adopted - October 26, 1976 Amended - November 27,1978 Amended - April 27,1987 Amended - January 24,1994 Amended - February 26,1996 Amended - February 24,1997 Amended - May 26,1998 Formerly M -5