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Home My Public Portal AboutResolution - 79-09- 19790124 - Author of Board membersRESOLUTION NO. 79-9 RESOLUTION OF THE BOARD OF DIRECTORS OF THE MIDPENINSULA REGIONAL OPEN SPACE DISTRICT AUTHORIZING CERTAIN BOARD EMPLOYEES TO INVEST TEMPORARILY IDLE FUNDS IN SECURITIES ALLOWED BY GOVERNMENT CODE. WHEREAS, the District needs to mazimize its yield on temporarily idle funds in order to help meet land acqui- sition objectives; and WHEREAS, Government Code, Sections 53630 et. seq. authorize the District to invest inactive funds in securities currently yielding interest rates considerably higher than the Santa Clara County Fund; and WHEREAS, the District can markedly improve its yield on temporarily idle funds without sacrificing financial safety or flexibility; NOW, THEREFORE, BE IT RESOLVED as follows: Section One. The Board of Directors of the Midpenin- sula Regional Open Space District does hereby authorize the Controller, or in his/her absence, a District employee author- ized to act on his/her behalf, to invest temporarily idle funds according to the Investment Goals and Guidelines attached here- to as Exhibit "A" and by reference made a part hereof. Section Two. Before any particular investment 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. 79-1 adopted January 10, 1979. This Resolution shall no longer be in effect as of January 24, 1980, unless extended in time, and inactive funds shall then be deposited in the Santa Clara County commingled investment fund. * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * RESOLUTION NO. 79-9 PASSED AND ADOPTED by the Board of Directors of the Midpeninsula Regional Open Space District on January 24 regular meeting thereof, by the following vote: AYES: NOES: , 1979 at a Richard Bishop, Katherine Duffy, Nonette Hanko, Barbara Green, Harry Turner, Daniel Wendin and Edward Shelley None ABSTAIN: None ABSENT: None ATTEST: APPROVED: SLV y, ors President, Board of Directors cretar Board of D e 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 date. District Clerk Exhibit "A" Investment Goals and Guidelines GOALS Goal 1. Capital Preservation Temporarily idle funds shall be invested in a conservative manner such that funds can always be withdrawn at, or just below, full invested value. Investments that offer oppor- tunities for significant capital gains and losses are ex- cluded. Goal 2. Liquidity Temporarily idle funds will be managed so that normal oper- ating 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 Government Code. GUIDELINES 1. Determination of Idle Funds. The Controller will prepare a complete 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 designating the maximum amount of funds available for investment in each month. 2. Contingency Reserve. A contingency reserve of between $500,000 and $1,500,000 shall be maintained with the Santa Clara County Treasurer. The General Manager is responsible for determining the size of this contingency reserve. 3. Non -Invested Funds. Idle District funds not otherwise invested will be deposited with the Santa Clara County Treasurer. 4. Selection of Investments. The Controller is responsible for selecting specific investments that fit within the amounts and maturities designated by the General Manager. The Controller is also responsible for directing security transactions. 5. Investment Instruments. Investments shall be limited to those allowed by the Government Code. 6. Diversification. Investments other than insured or col- lateralized deposits at banks and savings and loan asso- ciations shall be diversified. 7.. Marketability. For investments other than deposits, the breadth of ownership and number of securities outstand- ing 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 Cali- fornia banks and savings and loan associations with over $500,000,000 of deposits. 9. Acceptable Collateral. Securities collaterizing bank or savings and loan deposits must be rated "A" or higher. 10. Preferred Check Signatures. The preferred signatures on checks drawn for investment are the Treasurer and Gen- eral Manager. 11. The Controller shall report all security transactions to the Budget Committee no later than the next Regular Meet- ing of the Board of Directors after any transaction has been made. The Controller shall submit a complete list- ing of the investment portfolio to the Budget Committee by the fourth Wednesday of each month. MF: