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Home My WebLink AboutMINUTES - 01282003 - C50 1 : BOARD Fl PERM R $.�� Contra FROM; William J. Pollacek, Treasurer-Tax Collector �., r��ts�r � Costa DATE January 2 , 2003 countye SUBJECT: Authorizing the Contra Costa County Treasurer-Tax Collector to Execute Joint Power Documents and Participate in the California Investment Trust ( a °r st SPECIFIC REQUESTS)OR RECO'M ENDATI N(S)&BACKGROUND AND JUSTIF€CAMON Recommendation: APPROVAL of the Resolution of the Contra Costa Board of Supervisors, County of Contra Gaeta, State of California, authorizing the Contra Gaeta County Treasurer-Tax Collector to join with other public agencies as a participant of the California Investment `rust ( lTRU T) and to invest in shares of the trust and in individual portfolios, FISCAL IMPACT: None AEI , F Q `�be California Investment Trust ( lTRUST) is being created under provisions of the California Joint Exercise of Powers Act to provide California public Agencies with investment management services for public funds and comprehensive investment management, accounting and arbitrage calculation services for proceeds of tax-exempt financing, This fund will offer investment opportunities that do not exist in the several funds currently available for public funds. Four (4) counties and one Special District are scheduled to become the founding member of the California Investment `rust ( aI RUST), Contra Costa County would be one of the founding members, along with Solaro, Riverside and Sonoma Counties, and Westland Water District of Fresno, CA. WJP:rr,. CONTM)ED CPQ ATTACHM.'ENT: x YES S€NATURE: RECOMMENDATION ION OF COUNTY ADIM::1€:S`T BATOR RECOMM.E DAT1 BOARD COMMITTEE APPROVE OTHER SICNATURE S` lkL ACT,;0N OF B��y ON SAINT ARY 28 2003 APPROVED AS RECOMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THS €S A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON MIND ES OF THE BOARD OF SUPERVISORS CN THE DATE SHOIAIN. �es UNANIse OUS(ABSENT AYES: €OES: ABSENT: ABSTAIN: Contact Cc: Tressurer-Tax Cci'sectoes Offlce A`TESTED JANUARY 28 2003 'OHN VVVEETEN,CLERK OF THE BOARD OFSUPERV€SCRS AND COUNTY ADMINISTRATOR BY: .� :f 4.✓" '� DEPUTY RESOLD 1-ON #2Q,23, 48 Contra Costa County Administration Building Martinez, California SOLUTION OF THE BOARD OF SUPERVISORS OF THE COUNTY OF CONTRA COSTA, STATE OF CALIFORNIA,AUTHORIZING THE COUNTY OF CONTRA COSTA "PUBLIC AGENCY" TO JOIN WITH OTHER PUBLIC AGENCIES AS A PARTICIPANT OF THE INVESTMENT TRUST OF CALIFORNIA, CARRYING ON BUSINESS AS "CaIi`R ST" WHEREAS, Section 6502 of Title 1, Division 7, Chapter 5 of the Government. Code of the State of California(the "Joint Exercise of Powers Act" provides that, if authorized by their legislative or other governing bodies, two or inure public agencies by agreement may jointly exercise any pourer common to the contracting parties; and WHEREAS, uric' Section 6500 of the.oint Exercise of Pourers Act, a "public .may" includes but is not limited to the federal government or any federal department or agency, the State of California, another State or any State department or agency, a county, a county board of education, county superintendent of schools, city,public co ooration, public district, or regional transportation coin-mission of the State of California or another State, or any joint pourers authority formed pursuant to the California Joint Exercise of Pourers Act; and WHEREAS, public agencies which constitute local agencies, as that term is defined it Section. 536.3€3 of Title 5, Division 2, Fart 1, Chapter 4, Article 2 of the Government Code of the State of California (the "California Go3ver ent Codd"), are authorized pursuant to Section 53601 and/or 53635 thereof to invest all money belong to, or in the custody of, the local agency in certain specified invest_°nents; and WHEREAS, the Investment Trust of Cali' rnia, carrying on business as Call 2 S (the "Trust") was established, pursuant to and in accordance with the Joint Exercise of Powers Act, by a Declaration of Trust, made as of January28 ,2€03 (the "Declaration of Trust"), as a vehicle for public agencies to ;ornt y exercise their common power to invest funds other t~ran tax-exempt bond proceeds in accordance with an. California law governing the investment of funds by public agencies; and WHEREAS,pursuant to and in accordance with the Joint Exercise of Pourers Act, the Public Agency desires to join the other public agencies which are or will be Participants of the Trust by adapting and executing the Declaration of Trust, a form which Inas been presented to this meeting; and WHEREAS, the Public Agency Is a pablic agency as that tenni is defined in the Joint.Exercise of Powers Act and a local agency as that ter is defined in Section 53630 of the California Government Code; The Trust will be governed by a Board of up to nine trustees, all of whom are officers or employees of public agencies. William I Pollacek, Treasurer-Tax Collector will be Contra Costa County's Trustee. The Trustees are responsible for setting overall policies and procedures for the Trust and for hiring and supervising the activities of the Investment Advisor. The Board of Trustees nnet on Thursday, January 9, 2002 and selected California State Association of Counties (CSAC) Finance Corp. as Fund Administrator; Met- politan West Securities, LLC, (MetWest) as Tnvestrnent Advisor; Orrick, Herrington& Sutch ffe , LLP as Counsel; and Wachovia as Custodian. Norma Lan. niers, Executive Director, CSAC Finance Corp was elected Secretary-Treasurer of the Board of Trustees. Meffest, the Investment Advisor, currently'r-las over$62 billion in assets under managetnent including$2 billion with CaIPERS, $425 million with the California State U-niversity System, $750 mill-on with the California Earthquake Authority, and $80 million with the City of Poway. The initial drafting of all the legal documents was Gone by attorneys with Paul, Hastings, _anofsky and Walker, LL . The draft documents were hen reviewed by attomeys with Orrick, Herrington& Sutcliffe, LLP in their capacity as outside counsel 11 to the CSAC Finance Corp. Subsequently,Norma Lammers, Executive Director of the Finance Corp., nsels to review the documents, as well, prior arranged for a working group of county cou� to Finance Corp. at its Fall 2002 Meeting. their adoption by the CSAI.F The Contra Costa County Treasurer-Tax Collector is requesting approval offthe County's i i participation in this Investment Trust to provide an additional nvCsIm ent.an -on for the County's Pooled Investment Portfolio, This Trust is very consistent with the Treasury policy i I mterest ol icy of preservation of princiDal while seeking to attain a high level of current I V income. The Trust purchases only investments that are pe-,rmfitted by Califon.-1ia Government Code statutes,with the exception that all ieveraging of funds within,the mor"t-bHo are prohibited, The Cal—I,WUST will serve as a highly liquid accou.rA, wit in our invest e-nt asset allocation--o0r gra rn. , and offer two (2) additional investment options, a rn mediurn term option with a target duration of 1.5 —3.5 years and a long term option of 5 —7 years. Therefore, based upon the security that this CalTRUST investment offers, the liquidity and electronic access of the finds, and the cooperation and participation of the other. four (4) Californiapublicagencies, I am requesting approval of the Resolution to Participate in the California Investment Trust and authorize the Contra Costa County Treasurer-Tax — Collector to execute the,Declaration of Trust and all other documents required by the Trust. Boa7dorderldoc WHEREAS,the Public Agency is otherwise permitted to be a Participant of the Trust and to invest funds in the Trust to be managed by the Investment Advisor to the `rust,notwithstanding other investments held by the Public Agency or current investment policies that otherwise:nay be in effect for the Public Agency so long as the Trust Invests in securities a-lid other instruments permitted for investment by public agencies pursuant to applicable California is aw; and WHEREAS, there has been presented to this meeting an Inforrnation Statement describing the Trust (the `InformationStatement"); NOW, THEREFORE, BE IT RESOLVED by the goveming body of the Public .Agency(.the "Gove ing Body ) as follows: Section 1. The public agency shall join with other public agencies pursuant to and in accordance with the joint Exercise of Powers Act by executing the Declaration of Trust and thereby becoming a Participant m the Frust, which Declaration of Frust is hereby approved and adopted,notwithstanding gather investments held by the Public Agency or current investment policies that otherwise may be in effect for the Public Agency so long as the 'Frust invests in securities and other instruments pen-nitted for investment by public agencies pursuant to applicable California law. A copy of the declaration of Trust shall be filed with the minutes ofthe anecting at which this Resolution was adopted. File Governing Body is hereby authorized to execute, and the Attesting Officer of Governing Body is hereby authorized to attest and deliver, the Declaration of Trust, in substantially the form-presented at this meeting. Section 2. The Public Agency is hereby authorized to purchase shares in the Trust Emir time to tune with available finds of the Public Agency, nand to redeem some or all of those shares flora°time to time as such funds are needed, notwithstanding ocher investments held by the Public Agency or current inves'.ment policies that otherwise niay be in effect for the Public Agency so long as the Trust invests in securities and other instruments permitted for invest-ment by public agencies pursuant to applicable California law. Section 3. The appropriate officers, agents, and employees of the Public Agency are hereby authorized and directed in the narne and on behalf of the Public Agency to take all actions and to mage .and execute any and all certificates, requisitions, agreements, notices, consents, warrants, and other documents, which they, or any of them-, might deem necessary or appropriate in order to accomplish the purposes of'his Resolution. Section 4. The Treasurer of the Public Agency is hereby delegated authority of+,he Governing Body of the Public Agency to take all actions and to make and execute any and all instruments which he might deem.necessary or appropriate in order to carry out the purposes of the Governing Body in adopting this Resolution, including, without limitation, the authority to extend the maturity of any investments made pursuant to this Resolution in accordance with applicable California :aw. 2 Section 5. Nothing contained in this Resolution shall be deemed to infringe upon the right of the Public Agency or the overning Body or Treasurer of the Public Agency to make other investments outside ofthe mandate of this Resolution in acco daice with applicable California law to the fullest extent permitted thereunder. Section 6. This Resolution shall tale effect at the earliest date permitted bylaw. PASSED AND ADOPTED this 28th day cf Raquary, 003. SUPERVISORS: Gioia x IJilkema x Gerber x DeSauhiier_. .—._ Aover_x,___._ fyes.�iin � �7$5tes. Alsstary Absent. SO ORDERED. hereby certffy that this is a true and Corrart ccPY Of an action taken and entered on the inUt6s Of the Board of Supervisors on the date shown, JOHN SWEETSN, rd Of-SC-ParVisors and CourityAelminletrator ... -,.moo. `" Deputy BoarC.C2.;it mj.St.Res.doc 3