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Home My WebLink AboutMINUTES - 03162004 - C.32 Contra TO: BOARD OF SUPERVISORS 1 1 1Costa FROM: William J. Pollacek, Treasurer-Tax Collector DATE, March 16, 2004 County ce 30wo� SUBJECT: TREASURER'S INVESTMENT POLICY AS OF MARCH, 2004 SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION Recommendation: ACCEPT the Treasurer's Investment Policy as of March, 2004 with changes effective January 1, 2004. BACKGROUND/REASON (S) FOR RECOMMENDATION (S): To revise the Treasurer's Investment Policy to include the amendment pursuant to Senate Bill 787, Chapter 197. The amendment is on instruments authorized for investment, specifically on commercial paper quality. The primary change is the substitution of!Nationally Recognized Statistical-rating Organization (NRSRO) in place of naming specific rating agencies. The government code amendment is effective January 1, 2004. Pursuant to Government Code Section 27133, at the February 17, 2004 Treasury Oversight Committee meeting, the committee reviewed and recommended the inclusion of the amendment in the Treasurer's Investment Policy. Except for the aforementioned amendment of the Government Code, all other policy items remain the same. A copy of the new section in the Treasurer's Investment Policy is submitted to the Board of Supervisors for review and acceptance. WJP:mb Attachment CONTINUED ON ATTACHMENT: YES SIGNATURE: le**e4& ^Ao/ RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDAT ON F BOARD COMMITTEE APPROVE OTHER SIGNATURES. rzoe, ACTION OF BAR ONr� c7L'00 APPROVED�. ED AS RECOMMENDED 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. UNANIMOUS(ABSENTr „ AYES: NOES: ABSENT: ABSTAIN: Contact: Cc: Treasurer-Tax Collector's Office ATTESTED � � - JOHN SWEETEN,CLERK OF E BOARD OFSUPERVISORS AND COUNTY ADMINISTRATOR BY: ,DEPUTY ,E low CONTRA COSTA COUNTY TREASURER'S OFFICE 625 COURT STREET, ROOM 102 MARTINEZ, CA 94563 DATE: January 6, 2004 TO: INVESTMENT OVERSIGHT COMMITEE FROM: Clarissa V. Javier ry SUBJECT: INVESTMENT POLICY -COMMERCIAL PAPER,11ECTION UPDATE Pursuant to Senate Bill 787, Chapter 197, the section on commercial paper has been amended effective January 1, 2004. Attached is the amended section in the context of the current investment policy (letter G. pages 2 and 3). The changes are underlined 'or noted in bold letters or strikeouts for the eliminated language. The primary change is the substitution of Nationally Recognized Statistical-rating Organization (NRSRO) in place of naming specific rating agencies. CONTRA COSTA COUNTY INVESTMENT POLICY JANUARY, 2004 INSTRUMENTS AUTHORIZED FOR INVESTMENT §5360'1. Instruments Authorized for Investment A. Bonds issued by the local agencies, including bonds payable solely out of the revenues from a revenue-producing property, owned, controlled, or operated by the local agency or by a department, board, agency or authority of the local agency. B. United States Treasury notes, bonds, bills or certificates of indebtedness, or those for which the faith and credit of the United States are pledged for the payment of principal and interest. C. Registered state warrants or treasury notes or bonds of this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by the state or by a department, board, agency or authority of the state. D. Bonds, notes, warrants or other evidences of indebtedness of any local agency within this state, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled or operated by the local agency, or by a department, board, agency or authority of the local agency. E. Federal agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. F. Bankers acceptances otherwise known as bills of exchange or time drafts drawn on and accepted by a commercial bank. Purchases of banker's acceptances may not exceed 180 days' maturity or 40 percent of the agency's money that may be invested pursuant to this section. However, no more than 30 percent of the agency's money may be invested in the banker's acceptances of any one commercial bank pursuant to this section. This subdivision does not preclude a municipal utility district from investing any money in its treasury in any manner authorized by the Municipal Utility District Act (Division 6, commencing with Section 11501, of the Public Utilities Code). G. Commercial paper of "prime" quality of the highest ranking or of the highest letter r,- _ and number rating as provided for by BIVAN e.0 o,cdy'�ve_,6W,,l:6z * - . InIhAnndAf'QI 1 %OLI n ;anjz Ina hn a tonn 4=2 0 1%%01 5 1 IW%0%11 Is! 9%0.RfnndArd 2nd pnr%C oz IRE r [:;tnh ENnnnnoni Rnni %0%08 M%15 11.41.1wo 9 hnII hn n a 'd Ang[Mnrgkt;nr1 UI*th;n thn I I n;tAncl t hat, issuee, thtm.. r.,elmme. 1%.0011 A.F%0 %00,% %.A %0%1 9 %I51%wo sztntnizz izhall hnum tntni nc_ _Q,!Nt_Q in eXGe6_Q cif flum h1indr,=1 tv *11;nn d n I In C_Q %0 an 5 5%.4 W VkW0 16W 46%.015 %0%WW%0 16%0 on 0 WW W 1 6 11 V%.0 1%41 5%As 258115%02 1 %AW41%.Al W ntheg thnn GOM 0 a, nnnnkr of nnu thnt I0%tfr%F 0;Of 0%,1 0%,Q 0 000-) -and is shl%:a Is In -a sws u e d..efto&h.A.1 %,%.§owl %.I l%.Al I WAR M%.0KM%0lj am UANIZI "A" cir Wahnr hit h4nn !Q D n r F4trh ;no E:Ihte & Is WN a INUR N*.fl NO I lwv%owqy��E%.&T 5 1 %011 a nationally recognized statistical-rating organization NRSRo . The entitv that issues the commercial 2 M Y CONTRA COSTA COUNTY INVESTMENT POLICY JANUARY, 2004 paper shall meet all of the folloWin-a .conditions in either pawraph 1 or paragraph (2): (1) The entity meets the following criteria: (A) Is or anized and operating in the United States as a general corporation. (B) Has total assets in excess of five hundred million dollars ($500 1000jr000). (C) Has debt other than commercial paper, if anv, that is rated "A" or higher by a national/y reco sized statistical-ratin or anization (NRSRO). (2) The entity meets the following criteria: (A) Is organized within the United States as a s ecial purvose corporation, trust, or limited liability companv. (B) Has i7rocramwide credit enhancements includina but not limited to overcollateralization, letters of credit, or suretv bond. (C) Has commercial paper that is rated "A-111 or hi heror the equivalent b a national/ recognized statistical-ratin or anizationNRSRO . Eli ible commercial a er shall have a maximum maturi of 270 days or less. Local agencies, other than counties or a cily and counly, May invest no more than 25 percent of their money in eligible commercial paper. Local agencies, other than counties or a city and county, may purchase no more than 10 percent of the outstandinq commercial a er of any single issuer. Counties or a citv and counly may invest in commercial paper pursuant to the concentration limits in subdivision (a) of Section 53635. Following are the concentration limits (Government Code Section 53635, subdivision (a)): 1. Not more than 40 percent of the local agency's money may be invested in eligible commercial paper. 2. Not more than 10 percent of the local agency's money may be invested pursuant to this may be invested in the outstanding commercial paper of any single issuer. 3. No more than 10 percent of the outstanding commercial paper of any single corporate issuer may be purchased by the local agency. H. Negotiable certificates of deposit issued by a nationally- or state-chartered bank or a savings association or federal association (as defined by Section 5102 of the Financial Code), a state or federal credit union, or by a state-licensed branch of a foreign bank. Purchases of negotiable certificates of deposit may not exceed 30 percent of the agency's money that may be invested pursuant to this section. For purposes of this section, negotiable certificates of deposits do not come within Article 2 (commencing with Section 53630), except that the amount so invested shall be subject to the limitations of Section 53638. The legislative body of a local agency and the treasurer or other official of the local agency having legal custody of the money are prohibited from investing local agency funds, or funds in the custody of 3