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Home My WebLink AboutRESOLUTIONS - 01012003 - 2003-048 V . RESOLUTION#2003148 Contra Costa County Administration Building Martinez, California RESOLUTION 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 "CatTRRUST" 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 more public agencies by agreement may jointly exercise any power common to the contracting parties; and WHEREAS,under Section 6500 of the Joint Exercise of Powers Act, a" up blit agency" 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 corporation,public district,or regional transportation commission of the State of California or another State, or any joint powers authority formed pursuant to the California Joint Exercise of Powers Act; and WHEREAS,public agencies which constitute local agencies, as that term is defined in Section 53630 of Title 5, Division 2, Part 1, Chapter 4, Article 2 of the Government Code of the State of California(the"California Government Code"), 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 investments; and WHEREAS, the Investment Trust of California, carrying on business as Ca1TRUST (the"Trust")was established,pursuant to and in accordance with the Joint Exercise of Powers Act,by a Declaration of Trust, made as of January26 ,2003 (the "Declaration of Trust"), as a vehicle for public agencies to jointly exercise their common power to invest funds other than tax-exempt bond proceeds in accordance with applicable California law governing the investment of funds by public agencies; and WHEREAS,pursuant to and in accordance with the Joint Exercise of Powers Act,the Public Agency desires to join the other public agencies which are or will be Participants of the Trust by adopting and executing the Declaration of Trust, a form which has been presented to this meeting; and WHEREAS,the Public Agency is a public agency as that term is defined in the Joint Exercise of Powers Act and a local agency as that term is defined in Section 53630 of the California Government Code; 1 } The Trost will be governed by a Board of up to nine trustees, all of whom are officers or employees of public agencies. William J. 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 met on Thursday, January 9, 2002 and selected California State Association of Counties (CSAC)Finance Corp. as Fund Administrator; Metropolitan West Securities, LLC, (MetWest) as Investment Advisor; Orrick, Herrington& Sutcliffe, LLP as Counsel; and Wachovia as Custodian. Norma Lammers, Executive Director, CSAC Finance Corp was elected Secretary-Treasurer of the Board of Trustees. MetWest, the Investment Advisor, currently has over$62 billion in assets under management including $2 billion with CalPERS, $425 million with the California State University System, $750 million with the California Earthquake Authority, and $80 million with the City of Poway. The initial drafting of all the legal documents was done by attorneys with Paul, Hastings, Janofsky and Walker, LLP. The draft documents were then reviewed by attorneys with Orrick, Herrington& Sutcliffe, LLP in their capacity as outside counsel to the CSAC Finance Corp. Subsequently,Norma Lammers, Executive Director of the Finance Corp., arranged for a working group of county counsels to review the documents, as well,prior to their adoption by the CSAF Finance Corp. at its Fall 2002 Meeting. The Contra Costa County Treasurer-Tax Collector is requesting approval of the County's participation in this Investment Trust to provide an additional investment option for the County's Pooled Investment Portfolio, This Trust is very consistent with the Treasury policy of preservation of principal while seeking to attain a high level of current interest income. The Trust purchases only investments that are permitted by California Government Code statutes, with the exception that all leveraging of funds within the portfolio are prohibited. The Ca1TRUST will serve as a highly liquid account within our investment asset allocation program, and offer two (2) additional investment options, a medium 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 funds, and the cooperation and participation of the other four (4) California public agencies, 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. Boardorderldoc ;1 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 Trust, notwithstanding other investments held by the Public Agency or current investment policies that otherwise may be in effect for the Public Agency so long as the Trust invests in securities and other instruments permitted for investment by public agencies pursuant to applicable California law; and WHEREAS,there has been presented to this meeting an Information Statement describing the Trust(the"Information Statement' NOW,THEREFORE,BE IT RESOLVED by the governing body of the Public Agency(the"Governing 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 in the Trust,which Declaration of Trust is hereby approved and adopted,notwithstanding other investments held by the Public Agency or current investment policies that otherwise may be in effect for the Public Agency so long as the Trust invests in securities and other instruments permitted for investment by public agencies pursuant to applicable California law. A copy of the Declaration of Trust shall be filed with the minutes of the meeting at which this Resolution was adopted. The 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 from time to time with available funds of the Public Agency, and to redeem some or all of those shares from time to time as such funds are needed, notwithstanding other investments held by the Public Agency or current investment policies that otherwise may be in effect for the Public Agency so long as the Trust invests in securities and other instruments permitted for investment 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 name and on behalf of the Public Agency to take all actions and to make 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 this Resolution. Section 4. The Treasurer of the Public Agency is hereby delegated authority of the 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 law. 2 f Section 5. Nothing contained in this Resolution shall be deemed to infringe upon the right of the Public Agency or the Governing Body or Treasurer of the Public Agency to make other investments outside of the mandate of this Resolution in accordance with applicable California law to the fullest extent permitted thereunder. Section 6. This Resolution shall tape effect at the earliest date permitted by law. PASSED AND ADOPTED this 28th day of January, 2003. SUPERVISORS: Gioia x Uilkema x Gerber x DeSaulnier x Glover_X__ Ayes: I,I,iii Iv,v Noes: mm Abstain: Npgg Absent: Nom SO ORDERED. I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the S and of Supervisors on the date shown. ATTESTED- rU JOHN SWEETEN, CWk of the card of Supervisors ap'd County ministratcr Sy Deputy Boud.caltrustRes.doc 3 i I I III II I I jl i I I i j TO:. BOARD OF SUPERVISORS •, �` �� ,� Contra FROM: William J. Pollacek, Treasurer-Tax Collector WL Costa DATE: January 28, 2003 O u my t. •S� SUBJECT: Authorizing the Contra Costa County Treasurer-Tax Collector to Execute Joint Power Documents and Participate in the California Investment Trust (CalTrust) SPECIFIC REQUEST(S)OR RECOMMENDATION(S)S BACKGROUND AND JUSTIFICATION Recommendation: APPROVAL of the Resolution of the Contra Costa Board of Supervisors, County of Contra Costa, State of California, authorizing the Contra Costa County Treasurer-Tax Collector to join with other public agencies as a participant of the California Investment Trust (CaITRUST) and to invest in shares of the trust and in individual portfolios. FISCAL IMPACT: None BACKGROUND/REASON (S) FOR RECOMMENDATION_(S) The California Investment Trust (CaITRUST) 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 Trust (CaITRUST). Contra Costa County would be one of the founding members, along with Solano, Riverside and Sonoma Counties, and Westland Water District of Fresno, CA. WJP:mb Attachment CONTINUED CONTION ATTACHMENT: X YES .SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATIOV 9F BOARD COMMITTEE APPROVE OTHER (3<SIGNATURES ACTION OF B ON. JANUARY 28. 2003 APPROVED AS RECOMMENDED X OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE AND CORRECT COPY OF AN ACTION TAKEN AND ENTERED ON MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE SHOWN. y UNANIMOUS(ABSENT N(1NF ) AYES: NOES: ABSENT: ABSTAIN: Contact: Cc: Treasurer-Tax Collector's Office ATTESTED JANWY 2892003 JOHN SWEETEN,CLERK OF THE BOARD OFSUPERVISORS AND COUNTY ADMINISTRATOR r BY: �,.. � ,DEPUTY