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HomeMy WebLinkAboutMINUTES - 08042009 - C.106RECOMMENDATION(S): AUTHORIZE the deposit and withdrawal of funds of the Contra Costa County Redevelopment Agency in the Local Agency Investment Fund of the State Treasury in accordance with the provisions of Section 16429.1 of the Government Code for the purpose of investment as stated therein, and the verification by the State Treasurer's Office of all banking information provided in that regard; and AUTHORIZE the following officers or their successors to order the deposit or withdrawal of Agency funds in the Local Agency Investment Fund: David Twa, Executive Director __________________________________________ (s) Catherine O. Kutsuris, Assistant Executive Director __________________________________________ (s) James Kennedy, Deputy Executive Director __________________________________________ (s) APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 08/04/2009 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Susan A. Bonilla, District IV Supervisor Federal D. Glover, District V Supervisor Contact: Jim Kennedy, 335-7225 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: August 4, 2009 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: Katherine Sinclair, Deputy cc: C.106 To: From:Jim Kennedy, County Redevelopment Director Date:August 4, 2009 Contra Costa County Subject:Investment of Funds in the Local Agency Investment Fund FISCAL IMPACT: None. The recommended action does not involve general funds. This continues previous practice of the redevelopment Agency to invest some of its funds in the Local Agency Investment Fund. Recent actions of the State Legislature have brought into question whether funds invested in the Local Agency Investment Funds can be diverted to resolve the state's budgetary problems. According to a posting on the website of the California State Treasurer the answer is no. California Government Code Section 16429.3 states that monies placed with the Treasurer for deposit in the Local Agency Investment Fund by cities, counties, special districts, nonprofit corporations, or qualified quasi-governmental agencies shall not be subject to either of the following: (a) Transfer or loan pursuant to Sections 16310, 16312, or 16313. (b) Impoundment or seizure by any state official or state agency Furthermore, California Government Code 16429.4 which was added to the Local Agency Investment Fund's enabling legislation during the 2002 session states that the right of a city, county, city and county, special district, nonprofit corporation, or qualified quasi-governmental agency, to withdraw its deposited money from the LAIF upon demand may not be altered, impaired, or denied in any way by any state official or state agency based upon the States failure to adopt a State Budget by July 1 of each new fiscal year. BACKGROUND: A portion of the Redevelopment Agency's funds are invested in the Local Agency Investment Fund. This investment vehicle is managed by the California State Treasurer. This program offers local agencies the opportunity to participate in a major portfolio, which invests hundreds of millions of dollars, using the investment expertise of the Treasurer's Office investment staff at no additional cost to the taxpayer. This in-house management team is comprised of civil servants who have each worked for the State Treasurer's Office for an average of 20 years. The Redevelopment Agency has been utilizing the Local Agency Investment Fund for a portion of its investments since its inception. With the recent changes in staff for the County the authorized officers of the Redevelopment Agency authorized to direct activity related to the Local Agency Investment fund needs to be updated. The following officers of the Agency are to be authorized to direct investment activity: David Twa, Executive Director Catherine O. Kutsuris, Assistant Executive Director James Kennedy, Deputy Executive Director