HomeMy Public PortalAboutResolution - 80-12- 19800227 - Authorization to investRESOLUTION NO. 80- 12
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 maximize 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 higher than the Santa Clara
County Fund; and
WHEREAS, the District can 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. 79-9 adopted January 24, 1979. This Resolution shall no
longer be in effect as of February 27, 1981, unless extended
in time, and inactive funds shall then be deposited in the
Santa Clara County commingled investment fund.
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RESOLUTION NO. 80-12
PASSED AND ADOPTED by the Board of Directors of the Midpeninsula
Regional Open Space District on
February 27
19 80
at a regular/special meeting thereof, by the following vote:
AYES: Katherine Duffy, Daniel Wendin, Barbara Green, Edward Shelley, .
Nonette Hanko, Harry Turner and Richard Bishop.
NOES: None.
ABSTENTIONS: None.
ABSENT: None. '
ATTEST: APPROVED:
S retary,Board of Directors
Pxfesident, Board of Directors
I, the District Clerk/Deputy 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 vote.
• 1idd
Dist Q.ct 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 opportunities for signi-
ficant 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 Government Code.
• GUIDELINES
1. Determination of Idle Funds. The Controller will prepare a
complete cashflow 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 desig-
nating 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 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 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. Investments in Name of District. All investments purchased
shall stand in the name of the District.
11. Reporting. The Controller shall report all security trans-
actions to the Budget Committee no later than the next
Regular Meeting of the Board of Directors after any trans-
action has been made. The Controller shall submit a complete
listing of the investment portfolio to the Budget Committee
by the fourth Wednesday of each month.
12. Wiring of Funds. Wiring of funds from the District bank account
for purchase of investments shall in each instance require
prior written authorization of check signatories authorized
by the applicable Board resolution. Authorization shall
specify the destination of the wired funds and the security
to be purchased.
13. Purchase of Securities through Bank. The Controller is authorized
to purchase securities through the investment department of
the District's bank. The Bank shall be instructed in writing
to only purchase securities in the name of the District and
that all matured funds shall be returned to the District's
bank account.