HomeMy WebLinkAbout1977-09-12 Min - Board SPECIAL MEETING
SEPTEMBER 12, 1977
The Special Meeting of the Board of Directors was called to
order by the President at 7:00 P.M. in the District office.
,00.
ROLL CALL: Directors Sutton, Huber, Maass, and Kuttel were present.
EMPLOYEES PRESENT: A. Milton Seymour.
CONSULTANTS PRESENT: District Counsel Grumer.
EXECUTIVE SESSION
The meeting was adjourned into Executive Session at 7:04 P.M.
and reconvened into Public Session at 12: 15 A.M. , September 13, 1977.
RESOLUTION REGARDING LOCAL AGENCY INVESTMENT PROGRAM
The Manager, Mr. Seymour, opened the discussion by submitting
a copy of the Local Agency Investment Program booklet, a letter from the
Treasurer, Jesse M. Unruh, and a copy of the subject resolution, No. 7728.
District Counsel Grumer indicated he would have the subject
resolution wording changed to read, ''Be it further resolved that any one
of the following officers , or their successors in office, shall be auth-
orized to order the deposit or withdrawal of monies in the Local Agency
Investment Fund: Pat Sutton, President; Roberta Huber, Treasurer; A.
Milton Seymour, Manager.''
r- Director Sutton clarified the fact that the interest earned
and other increments derived from investments are distributed by the State
Controller at the conclusion of each calendar quarter and will collect interest
on one day only per quarter.
The following points were emphasized:
1 . Monies will be deposited into the TDPUD checking account
through a paper transaction from the LAIF Fund.
2. The rate of interest fluctuates , compounding on a quarter-
ly basis.
3. The withdrawal or deposit of monies from the fund simply
requires a telephone call from any one of the above mentioned officers.
(President, Treasurer, or Manager)
The Board then briefly discussed the money in the General Fund.
Mr. Seymour suggested that the $100,000.00 plus presently in
the General Fund be earning interest in a savings account; such an amount
is not needed in the checking account. He then proposed the following:
1 . To keep all monies including customer deposits in the fund
and only have enough money in the checking account to run the District on
a day today basis.
2. To change the Rules and Regulations to pay customers interest
on their security deposits.
No action was taken on these suggestions by the Board.
Director Maass moved to adopt Resolution 7728, authorizing the
investment of monies in the Local Agency Investment Fund. The motion was
seconded by Director Huber. ROLL CALL: Huber, aye; Kuttel , aye; Maass,
aye; Sutton, aye. SO ORDERED.
9/12/77
RESOLUTION NO. 7728
OF
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
AUTHORIZING INVESTMENT OF MONIES
IN THE LOCAL AGENCY INVESTMENT FUND
WHEREAS, pursuant to Chapter 730 of the Statutes of 1976
Section 16429.1 was added to the California Government Code to
create a Loacl Agency Investment Fund in the State Treasury for
the deposit of money of a local agency for purposes of investment
by the State Treasurer; and
WHEREAS, the TRUCKEE-DONNER PUBLIC UTILITY DISTRICT does
hereby find that the deposit and withdrawal of money in the Local
Agency Investment Fund in accordance with the provisions of
Section 19629.1 of the Government Code for the purposes of
investment as stated therein are in the best i.nterests of the
District,
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors
of the TRUCKEE-DONNER PUBLIC UTILITY DISTRICT as follows:
The Board of Directors do hereby authorize
the deposit and withdrawal of monies in the
Local Agency Investment Fund in the State
Treasury in accordance with the provisions
of Section 16429.1 of the Government Code
for the purpose of investment as stated
therein.
BE IT FURTHER RESOLVED that any one of the
following officers, or their successors in
office, shall be authorized to order the
deposit or withdrawal of monies in the
Local Agency Investment Fund:
PAT SUTTON President
ROBERTA HUBER Treasurer
A. MILTON SEYMOUR Manager
Passed and adopted by the TRUCKEE-DONNER PUBLIC UTILITY
DISTRICT, by its Board of Directors, at a meeting held within
the District on the 12th day of September, 1977, by the following
roll call vote:
AYES: R. HUBER, J. MAASS, K. KUTTEL, P. SUTTON.
NOES: NONE
ABSENT: NONE
TRUCKEE-DONNER PUBLIC UTILITY DISTRICT
ATTEST:
By
Clerk Thereof T SUTTO , President
The meeting was adjourned by general consensus at 1 :38 A.M. ,
September 13, 1977•
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Pat Sutto - President
Approved: l-'ZZZ7
Signed:
III
I
i
A. Milton Seymour
Clerk of the Board
9/12/77
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Assembly Bill No. 3107 Notwithstanding any other provisions of law,a
local ).2. There is created the Local Investment �Qscrvv
government official, with consent of the t+uvisory Board consisting of five members. The
governing body of that agency, having money in chairman shall be the State Treasurer or his or her
CHAPTER 730 its treasury not required for immediate needs,may designated representative. Two members who are
remit such money to the State Treasurer for qualified by training and experience in the field of
deposit in the Local Agency Investment Fund for investment or finance, shall be appointed
n act to add Article 11(commencing with Sec- the purpose of investment: State Treasurer.Two members w are treasurers,16429.1)to Chapter 2 of Part 2 of Division 4 The local governmental unit has the exclusive finance or fiscal officers or business managers, LOCAL
"1 itle 2 of the Government Code,relating to the determination of the length of time its mone will employed by any county, city or local district or
gal Agency Investment Fund, and making an be on deposit with the State Treasurer. y municipal corporation of this state, shall be
ropriation therefor. appointed by the Treasurer.
1pproved by Governor September 3, 1976. Filed with The State Treasurer may invest the money of the The term of office of each appointed member of AGENCY
Secretary of State September 7, 1976.1 fund in securities prescribed in Section 16430.The the board is two years,but each appointed mem-
State Treasurer may elect to have the money of the ber serves at the pleasure of the appointing
LEGISLATIVE COUNSEL'S DIGEST fund invested through the Surplus Money Invest- authority.A vacancy in the appointed membership,
ment Fund as provided in Article 4(commencing occurring other than by expiration of term,shall INVESTMENT
B 3107,Knox. Local Agency Investment Fund. with Section 16470) of Chapter 3 of Part 2 of be filled in the same manner as the original
xisting law does not provide for a Local Division 4 of Title appointment, but for the unexpired term only.
ncy Investment Fund as a special fund in the
e Treasury, nor for a local Investment Money in the fund shall be invested to achieve
Members of the board who are not tate officers
isory Board. the objective of the fund which is to realize the or employees shall not receive a salary,but hall be
maximum return consistent with safe and prudent entitled to a per diem allowance of fifty dollars
his bill would establish such a fund;prescribe treasury management.
aus duties for state officials regarding the fund; FUND
($50)for each day's attendance at a meeting of the
board, not to exceed three hundred dollars
permit local agencies to remit money to the All instruments of title of all investments of the ($300)in any month.All members shall be entitled
e Treasurer for deposit in the fund for the pur- fund shall remain in the State Treasurer's vault or of investment. to reimbursement for expenses incurred in the
beheld in safekeeping under control of the State performance of their duties under this part, in-
ie bill would also establish the local Investment Treasurer in any Federal Reserve bank, or any cluding travel and other necessary expenses.
sory Board and prescribe various duties for branch thereof, or the Federal Home Loan Bank
board. of San Francisco,with any trust company,or the The board's primary purpose shall be to advise
�propriation: yes. trust department of any state or national bank, and assist the State Treasurer in formulating the
investment and reinvestment of moneys in the E
people of the State of California do enact as Immediately at the conclusion of each calendar Local Agency Investment Fund, and the acquisi-
`t's' quarter, all interest earned and other increment tion, retention, management, and disposition of
derived from investments shall be distributed by investments of the fund.The board,from time to
:CTION 1. Article 11(commencing with Sec- the State Controller to the contributing govern- time, shall review those policies and advise
considers necessary or desirable. The 1
16429.1) is added to Chapter 2 of Part 2 of mental units directly proportionate to the respec- therein as it cons
ion 4 of Title 2 of the Government Code,to tive amounts deposited in the Local Agency board shall advise the State Treasurer in the
f f th
management manag of fund and consult the State
Investment Fund and the length of time such
amounts remained therein. An amount equal to Treasurer on any matter relating to the invest-
the reasonable costs incurred in carrying out the ment and reinvestment of moneys in the fund.
ticle 11. Local Agency Investment Fund provisions of this section, not to exceed a maxi-
mum�of one-quarter of 1 percent of the earnings 16429.3. Money placed with the State Treasurer
g for deposit in the Local Agency Investment Fund
129.1.There is in the State Treasu 'the Local of this fund, shall be deducted from the earnings ,or special districts shall not be
� prior to distribution and shall be deposited in the by cities,counties
;cy Investment Fund, which fund is hereby General Fund. subject to impoundment or seizure by any state
ed. All money in the fund is hereby appro- official or state agency.
d without regard to fiscal years to carry out )ESSE M. UNRUH
urpose of this section. The State Controller The State Treasurer shall prepare for distribu-
maintain a separate account for each govern- tion a monthly report of investments made during State Treasurer
al unit having deposits in this fund. the preceding month.
appointing authority for period of tv. 5.Lower Investment Cost
LOCAL AGE.."T PP g Y P " a deposit to the credit of Jesse M. Unr
The boards primary purpose shall be to By pooling cash balances and buying California State Treasurer, Demand B.,
INVESTMENT FUND advise and assist the State Treasurer in instruments in large amounts the charges Account,Sacramento Main Office of one
formulating the investment and reinvestment generally placed on small lot purchases are the following nine banks which will act
The Local Agency Investment Fund is a of monies in the Local Agency Investment eliminated. our depository:
special fund in the State Treasury created by Fund, and the acquisition, retention, manage- 6.No Minimum Investment Period Bank of America Security Pacific Bank
law. The law permits a local government ment, and disposition of investments of the There will be no minimum investment Bank of California Union Bank
official,with consent of the governing body of Fund. period. Monies deposited for investment one Central Bank United California Bank
that agency,to remit money in its treasury not ADVANTAGES OF NEW LEGISLATION FOR day may be withdrawn the next. Also, monies Crocker Bank Wells Fargo Bank
required for immediate need, to the State LOCAL GOVERNMENT AGENCIES Lloyds Bank
Treasurer for deposit in this special fund for the could be deposited on Friday and withdrawn
P P 1.A Voluntary Program on Monday to earn three days interest. B. The authorized government official t-
purpose.of investment. The legislation offers local government units also notify, by telephone, the Investm,
The-local government unit has the exclusive the opportunity to voluntarily invest tempo- HOW TO PARTICIPATE IN THE LOCAL Division of the State Treasurer's Office(A;
determination of the length of time its money rarity idle monies more advantageously. Local AGENCY INVESTMENT FUND Code 916/445-5911) stating the date a
will be on deposit with the State Treasurer. goverment officials have complete discretion The operational features for depositing, amount of the deposit,and the name of i
The State Treasurer will have the monies in as to whether or not they wish to deposit withdrawing or distributing monies in the Local correspondent bank that will be used by t
the Local Agency Investment Fund (LAIF) their surplus monies with the State Treasuer. Agency Investment Fund (LAIF) are easy and local bank. The same correspondent ba
invested with State monies through the Pooled The local government agency determines the uncomplicated in order to encourage partici- will be used for withdrawals unless the St,i
Money Investment Account. term of the investment. pation by local government agencies. The Treasurer is instructed otherwise.
Money in the LAIF shall be invested to achieve the objective of the Fund which is to 2. g g P Hi her Interest Rates following rocurdures have been established C. Telephone calls referred to in 3B must realize the maximum return consistent with The new legislation permits the pooling of by the State Treasurer in connection with the received by the Investment Division by 9:
safe and prudent treasury management. P a.m. if de
surplus cash balances of the State with the operation of the LAIF. posits received on that day are
The State Treasurer is responsible for the surplus cash (deposited for the purpose of 1. Before any deposits will be accepted, the be invested on the same day.
control and safekeeping of all instruments of investment) of the local government agencies local government agency will file with the State D. Verification of receipt of the deposits
title of all investments of the Fund. creating a multi-billion dollar money pool and the State will be made by the State Control
enabling the investment in diversified instru- Treasurer a resolution which will contain the • who will provide you with a co of 6
At the end of each calendar quarter, all g following: y PY
interest earned and other increment derived ments. Some of these instruments have A. Name and address of agency. Controller's Remittance Advice.
from investments shall be distributed, by the minimum denominations of one hundred B. A statement that the agency agrees to 4. Procedure for withdrawals from the LA;
State Controller, to the participating govern- thousand dollars ($100,000) and because of deposit or withdraw money in the Local A. The authorized government official A
agencies directly proportionate to the respec- their size usually provide higher yields than Agency Investment Fund in the State notify the Investment Division of the Sta
tive amounts deposited in the Fund and the instruments with smaller denominations. Local Treasury in accordance with the provisions Treasurer's Office(Area Code 916/445-591
length of time such amounts remained therein. government units do not have the authority to of Section 16429.1*of the Government Code stating the date and amount of the wit!
Prior to the distribution, an amount equal to take advantage of the higher rates of return drawal, the name and address of the loc
q for the purpose of investment as stated
the reasonable costs of making the investments, offered by these large denomination therein. bank that will be receiving the transfer
not to exceed one-quarter of 1 percent of the instruments. C. The names and titles of the officials withdrawal and the agencies account nur,
earnings of the Fund, shall be deducted from 3.More Liquidity authorized by this resolution, to order the ber at the local bank.The same correspon(
the earnings. Local government agencies will be able to deposit or withdrawal of money in the Local ent bank will be used for withdrawals as w,
The State Treasurer shall prepare a monthly convert their deposits in the Local Agency Agency Investment Fund. used for deposit unless the State Treasurer
report of investments made during the Investment Fund to cash in twenty-four hours instructed otherwise.
D. Resolution number and date passed by
preceding month. or less depending on time of notice.No interest B. Telephone calls must be received b tl
earnings are lost because an investment is the governing body. Y
LOCAL INVESTMENT ADVISORY BOARD E. Signature of the person authorized to Investment Division by 9:30 a.m.if the witl
withdrawn sooner than the term originally sign resolutions. drawal of deposits is to be received by th,
The legislation creates the Local Investment ff ll i if contemplated. F. Seal of the agency one s usually affixed
agency on the same day.
Advisory Board consisting of five members.The 4.Investment Expertise 5. After the end of each calendar quarter, i.
Board includes the State Treasurer as Chairman to resolutions.
The State Treasurer's Office is in constant 2 De terest income derived from investments sha.
or his designee, two members who are touch with investment markets and currentlyposits or withdrawals must be in multiples
treasurers,finance or fiscal officers or business or one thousand dollars($1,000) and the mini- be distributed by the State Controller to the
has average daily investment transactions of participating governmental units direct) pro
Mini-
managers employed by participating local approximately three hundred million dollars mum transaction size is five thousand dollars Y P
government agencies, and two members who ($300,000,000) a day. The local government ($5,000). portionate to the respective amounts deposiw'
in the Local Agency Investment Fund and th
are qualified by training and experience in the agencies will be able to take advantage of the 3. Procedure for deposits in the LAIF: length of time such amounts remained therein.
field of investment or finance.The four board investment experts already available in the A. The authorized government official will
members shall be appointed by the State Treasurer's Office at no additional expense to instruct their Inral g nle to wino tra„ef—+t,, The State Controller's warrant for thes{: