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Home My Public Portal About20080116 - Resolution - Board of Directors (BOD) (3) Cover Sheet for Scanning by ECS Originating Department General Manager Laserfiche Template Board of Directors Template Fields Document Date: 1/16/2008 Document Type: Resolution Preserve Name: Keywords(no more than 4): Renew Investment Authority Project Name: Project Number: Vendor or Other Party: Name (First): Name(Last): Address: APN Number: Document No. 08-03 Additional Field: Additional Field: Additional Field: Additional Field: RESOLUTION NO. 08-1 0 3 RESOLUTION OF THE BOARD OF DIRECTORS OF MIDPENINSULA REGIONAL OPEN SPACE DISTRICT ADOPTING A STATEMENT OF INVESTMENT POLICY AND AUTHORIZING THE CONTROLLER TO INVEST SURPLUS FUNDS ALLOWED BY GOVERNMENT CODE WHEREAS, the District needs to maximize the yield on surplus temporarily idle funds in order to help meet land acquisition objectives; and WHEREAS, Chapter 4, Division 2 of Title 5 of the Government Code authorizes the District to deposit and invest surplus funds in investments which, at times, yield interest rates higher than achievable through the Santa Clara County Pooled Fund, or the California Pooled Investment Authority; and WHEREAS, the District can often improve its yield on surplus funds without sacrificing financial safety and flexibility. NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS: Section One. The Board of Directors of the Midpeninsula Regional Open Space District does hereby authorize the Controller to invest surplus or temporarily idle funds according to the Investment Policy attached hereto as Exhibit "A" and by reference made a part hereof. Section Two. Before any particular investments the Controller shall consult with the General Manager, or a District employee authorized to act in his/her behalf, to determine anticipated cash flow needs of the District. Section Three. This Resolution supersedes Resolution No. 07-02, adopted January 10, 2007. This Resolution shall no longer be in effect as of January 14, 2009, unless extended in time, and inactive funds shall then be deposited in the Santa Clara County Pooled Investment Fund, with the California Pooled Investment Authority, or invested through the District's commercial bank. RESOLUTION No. 08-03 PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space District on January 16, 2008 at a Regular Meeting thereof, by the following vote: AYES: Jed Cyr, Mary Davey, Larry Hassett, Curt Riffle, Ken Nitz, Pete Siemens NOES: None ABSTAIN: None ABSENT. Nonette Ha nko ATTEST: APPROVED: Secretary resident Board of Directors Board of Directors I, the District Clerk of the Midpeninsula Regional Open Space District, hereby certify that the above is a true and correct copy of a resolution duly adopted by the Board of Directors of the Midpeninsula Regional Open Space District by the above vote at a meeting thereof duly held and called on the above day. District Vrk Exhibit"A" Statement of Investment Policy GOALS Goal 1. Capital Preservation The primary goal shall be to safeguard the principal of invested funds. The secondary objective shall be to meet the liquidity needs of the District. The third objective shall be to achieve a return on funds consistent with this Policy. Temporarily idle funds shall be invested in a conservative manner, such that funds can always be withdrawn at, or just above or below, full invested value. Investments that offer opportunities for significant capital gains and losses are excluded. Goal 2. Liquidity Temporarily idle funds will be managed so that normal operating cash needs and scheduled extraordinary cash needs can be met on a same day basis. Investments will be sufficiently liquid to provide a steady and reliable flow of cash to the District to insure that all land purchases can be made promptly(within two weeks). Goal 3. Income Temporarily idle funds shall earn the highest'rate of return that is consistent with capital preservation and liquidity goals and the California Government Code. GUIDELINES 1. Determination of Idle Funds The Controller will prepare a cash flow projection prior to all investment decisions. This cash flow projection will be reviewed and evaluated by the General Manager. The General Manager is responsible for approving the Controller's designation of the amount of funds not required for the immediate necessity of the District and available for investment. 2. Contingency Reserve A contingency reserve of at least$5,000,000 shall be maintained with the Santa Clara County Pooled Investment Fund. The General Manager is responsible for approving the Controller's designation of the size of this contingency reserve. At all times this contingency reserve,together with funds held in trust by bond trustees and pledged to the payment of bonds issued by the District,will be sufficient to satisfy the reserve requirements for all District debt. 3. Non-Invested Funds Idle District funds not otherwise invested as permitted by this Policy,or maintained with trustee paying agents and pledged to the payment of District indebtedness, will be deposited with the Santa Clara County Pooled Investment Fund,the San Mateo County Treasurer's Pooled Investment Fund or the State of California's Local Agency Investment Fund. 4. Selection of Investments The Controller is responsible for selecting investments that fit within the amounts and maturities recommended by the Controller and by the General Manager. The Controller is also responsible for directing security transactions. 5. Investments Instruments and Deposit of-Funds Investments and deposits of funds shall be limited to those allowed by and subject to the procedures of Government Code Section 53600 et seq. and 53635 el seq. In the event of any conflict between the terms of this Policy, and the Government Code,the provisions of the Government Code shall prevail. Investments shall not be leveraged. Investments, and "derivatives,"that offer opportunities for significant capital gains and losses are excluded. All investments,other than investment of bond proceeds and funds held by trustees and pledged to the repayment of bonds or other District indebtedness, shall mature within 180 days. Funds held by such trustees and other bond proceeds may be invested in accordance with the indenture or agreement providing for the issuance of such debt. 6. Diversification Investments other than insured or collateralized deposits at banks and savings and loan associations shall be diversified. 7. Marketability For investments other than deposits and investment of funds held by trustees as set out in Section 5,the breadth of ownership and number of securities outstanding will be sufficient to establish a secondary market in which investments can be readily converted to cash without causing a material change in their market value. 8. Acceptable Banks Bankers' Acceptances and Negotiable Certificates of Deposit may be purchased only from the District's commercial bank or banks and savings and loan associations with over$1,000,000,000 of deposits and reporting profitable operations and which meet all applicable criteria of the Government Code. 9. Acceptable Collateral Securities collateralizing bank or savings and loan deposits must be rated"A"or higher. 10. Investments in Name of District All investments purchased shall stand in the name of the District. 11. Reporting The Controller shall report all security transactions to the Administration and Budget Committee no later than the next Regular Meeting of the Board of Directors after any transaction has been made. The Controller shall submit a report of the District's investments and security transactions to the Administration and Budget Committee by the fourth Wednesday of each month in accordance with Government Code Section 53607. The Controller will render a quarterly investment report to the Board of Directors as required by Government Code Section 53646. Such reports shall also be submitted to the General Manager and to the District's auditor. The Administration and Budget Committee shall act on behalf of the Board of Directors in receiving reports from the Controller required by Government Code Section 53607. 12. Purchase of Securities The Controller is authorized to purchase securities through the investment department of the District's commercial bank and as otherwise permitted by the Government Code. The bank or other investment institution from which authorized securities are purchased shall be instructed in writing only to purchase securities in the name of the District and that all matured funds shall be returned to the District's commercial bank account. The bank shall also be instructed to send receipts for transactions to the General Manager. II