HomeMy WebLinkAboutMINUTES - 01091996 - C73 'To: BOARD OF SUPERVISORS I'�'-3 SEL Contra
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FROM: INTERNAL OPERATIONS COMMITTEE a � !s Costa
Count
DATE: December 18, 1995
PROCESS TO BE USED TO MAKE APPOINTMENTS TO THE TREASURY
SUBJECT: OVERSIGHT COMMITTEE. ADOPTION OF ORDINANCE RELATING TO
THE PRUDENT INVESTMENT STANDARD.
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS:
1. REQUEST the Treasurer-Tax Collector to review the applications for the at-
large seats on the Treasury Oversight Committee, including interviewing or
otherwise contacting applicants where necessary, to determine which
applicants would appear to be ineligible for appointment in light of the
restrictions in the law regarding current and future employment and actions
regarding raising money for the county treasurer or a member of the board of
supervisors while a member of the committee. REQUEST the Treasurer-Tax
Collector to report that number and his recommendations for appointment to
the at-large seats on the Treasury Oversight Committee to the 1996 Internal
Operations Committee.
2. INTRODUCE, WAIVE reading and FIX January 16, 1996, for adoption of the
attached Ordinance fully delegating to the County Treasurer the authority and
discretion for the investment of the funds held in the county treasury.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD C MMITIEE
APPROVE WiW OTHER
MARK DeSAULNIER JIM OGERS
SIGNATURE(S):
ACTION OF BOARD ON tea' J' t APPROVED AS RECOMMENDED K— OTHER
VOTE OF SUPERVISORS
I HEREBY CERTIFY THAT THIS IS A TRUE
_X UNANIMOUS(ABSENT none ) AND CORRECT COPY OF AN ACTION TAKEN
AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD
ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN.
ATTESTED January 9. 1996
Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF
CC: See Page 3 SUPERVISORS AND OUNTY ADMINISTRATOR
BY DEPUTY
I.O.4
BACKGROUND:
On November 14, 1995, the Board of Supervisors approved a report from our Committee
which included the following recommendations:
1. AGREE in principle to form a seven-member County Treasury Oversight Committee,as will be
required by SB 866 (Chapter 784, Statutes of 1995) effective January 1, 1996, composed as
follows:
4 One representative appointed by the Board of Supervisors.
O The County Superintendent of Schools or designee.
O One representative selected by a majority of the presiding officers of the governing
bodies of the school districts and the community college district in the County.
O One representative selected by a majority of the presiding officers of the legislative
bodies of the special districts in the County that are required or authorized to deposit
funds in the County Treasury.
4 Three members of the public, a majority of whom shall have expertise in, or an
academic background in, public finance and who shall be economically diverse and
bipartisan in political registration. _
2. REQUEST the County Treasurer to return to the Internal Operations Committee on December
18,1995 with his nominations for the membership of the Oversight Committee,as is provided
for in Government Code Section 27131.
3. REFER to the Internal Operations Committee the question of the"prudent investor"standard
of conduct for members of the Board of Supervisors imposed by SB 866 with a request that the
Committee make further recommendations to the Board of Supervisors regarding what actions
the Board might take in this regard.
On December 18, 1995, our Committee met with the County Treasurer and County
Counsel and considered the attached reports from them. The school districts are in
the process of nominating their appointee. The special districts will be doing the
same. We have received the nomination from the Superintendent of Schools for his
appointee.
The requirements in the law restrict the current and future employment of members
of the Oversight Committee and prohibit individuals from directly or indirectly raising
money for the county treasurer or a member of the board of supervisors while a
member of the committee. The law also requires that the County Treasurer
nominate the members of the Treasury Oversight Committee. We are, therefore,
asking that the County Treasurer do whatever interviewing and screening he wishes
to do in order to make his nominations for membership on the Treasury Oversight
Committee and to insure that all nominees understand and meet or are prepared to
meet the conditions outlined in Government Code Sections 27132.1, 27132.2, and
27132.3. The Special District Association has asked to have until January 20, 1996
to provide its nomination and the school districts have been given until January 3,
1996 to agree on their nominee.
We are asking that the County Treasurer provide his nominations to the 1996
Internal Operations Committee for subsequent reporting to the Board of Supervisors.
The County Counsel has also prepared, at the request of the Board of Supervisors,
an Ordinance which would allow the Board of Supervisors, pursuant to the provisions
of Government Code Section 27000.1, to fully delegate to the treasurer the authority
and discretion for the investment of funds held in the county treasury. Absent the
adoption of such an Ordinance, Government Code Section 53600.3 provides that the
governing body of a local agency is also a trustee subject to the prudent investor
standard.
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I.O.-3
The Board of Supervisors does not now exercise any authority over the investment
of the funds in the County Treasury and we do not believe that the Board wishes to
assume such authority. As a result, we see no reason for the Board of Supervisors
to undertake the additional liability which occurs with the enactment of Government
Code Section 53600.3. As a result, our Committee is recommending that the Board
of Supervisors introduce an Ordinance which would comply with the provisions of
Government Code Section 27000.1.
cc: County Administrator
Treasurer-Tax Collector
County Counsel
Bob Berggren, General Manager
Pleasant Hill Recreation and Park District and
Chairman, Special Districts Association
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CONTRA COSTA COUNTY
TREASURER-TAX COLLECTOR
625 Court Street, Room 100-102
Martinez, CA 94553
DATE: December 13, 1995
TO: INTERNAL OPERATIONS COMMITTEE
Supervisor Mark DeSaulnier, District 4
Supervisor Jim Rogers, District 1
FROM: Alfred P. Lomeli, Treasurer-Tax Collector �� J
SUBJECT: INVESTMENT OVERSIGHT COMMITTEE
At the last meeting, we were instructed to solicit candidates for membership for the
Investment Oversight Committee. A formal recruitment process was initiated and
personal telephone calls were placed to several qualified individuals. At the conclusion
of this recruitment process, the following names are being submitted for your
consideration for membership in this committee.
1. Don Bouchet, former County Auditor-Controller, retired.
2. Frank Fernandez, former Assistant County Administrator and current Board
Member of the Contra Costa County Employees Federal Credit Union.
3. James A. Mills (application attached).
4. James R. Schwartz (application and resume attached).
5. Dr. James R. Wells, Assistant Superintendent of Business, Antioch Unified
School District. (Representing the governing bodies of the school districts
and the community college district in the county).
6. Dr. Joseph A. Ovick, Associate Superintendent of Administration and
Business Services of the Contra Costa County Office of Education.
In the recruitment process, letters were mailed to the special districts requesting that they
select a representative chosen by a majority of the presiding officers to represent them
on this committee. They have until January 3, 1996 to submit their nominee. This
individual will need to be appointed at a later date.
APL:gm
COUNTY COUNSEL'S OFFICE
CONTRA COSTA COUNTY
MARTINEZ, CALIFORNIA
MEMORANDUM
Date: December 14, 1995
TO: Internal Operations Committee
FROM: Victor J. Westman, County Counsel��
Re: Proposed Ordinance to Clarify County Treasurer
Responsibility for "Prudent Investor" Standard
For County Treasury Investments
Attached is a proposed ordinance concerning the above-noted
matter for the Committee's consideration and recommended action
to the Board of Supervisors .
Chapter 784 of the statutes of 1995 (effective January 1,
1994) provides that the County Treasurer is a trustee and
therefore a fiduciary subject to the prudent investor standard
for investment decisions . (Gov. C. S 27000 . 3 . ) In addition,
Chapter 784 provides that governing bodies (e.g. , boards of
supervisors) of local agencies authorized to make investment
decisions on behalf of their local agencies are also trustees and
therefore fiduciaries subject to the prudent investor standard.
(Gov. C. § 53600.3 . )
New Government Code section 27000. 1, as contained in Chapter
784, provides that a board of supervisors may, by ordinance,
fully delegate to its county treasurer the authority and
discretion for the investment of funds held in the county
treasury. When a county board of supervisors so delegates such
authority to a county treasurer, the treasurer is thereafter
fully responsible for such investment decision transactions and
subject to the prudent investor standard. By such delegation, a
board of supervisors clarifies that it does not have any
investment decision authority for the purposes of Government Code
section 53600 . 3.
VJW/jh
attachment
J-102:a:\internal
ORDINANCE NO.
The Contra Costa County Board of Supervisors ordains as follows (omitting the
parenthetical footnotes from the official text from the enacted provisions of the County
Ordinance Code).
SECTION I. Section 24-10.004 is added to the County Ordinance Code to read as
follows:
24-10.004 The county treasurer (treasurer-tax collector) is delegated the
authority to invest or reinvest the funds of the county and the funds of other depositors
in the county treasury, pursuant to Chapter 4 (commencing with Section 53600) of Part
1 of Division 2 of Title 5 of the California Government Code. The county treasurer
(treasurer-tax collector) is fully responsible for those transactions.
(Ord. _; Gov.C. §§ 27000.1, 27000.3 & 53600.3.) .
SECTION II. Effective Date. This ordinance becomes effective 30 days after passage,
and within 15 days after passage shall be published once with the names of
supervisors, voting for and against it in the , by the
following vote:
AYES:
NOES:
ABSENT-
ABSTAIN-
ATTEST-
BSENT:ABSTAIN:ATTEST: PHIL BATCHELOR, Clerk of
the Board and County Administrator
By:
Deputy Board Chair
[SEAL)
HADFOTI\DOCS\TAX-COLL.W PD
ORDINANCE NO. 95-
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