HomeMy WebLinkAbout8 SRF Reserve fund Agenda Item # 8
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Public Utility District
ACTION
To: Board of Directors
From: Mary Chapman
Date: April 02, 2008
Subject: Consideration of Authorizing the Fiscal Agent to Invest the SRF
Reserve Fund in the State of California's Local Agency Investment
Fund.
1. WHY THIS MATTER IS BEFORE THE BOARD
The Bank of New York Trust Company, N.A., the Fiscal Agent for the State Revolving
Fund loan needs authorization to open an account with the State of California's Local
Agency Investment Fund. Only the Board can authorize opening an account with
LAIF.
2. HISTORY
In 2004, The Bank of New York Trust Company, N.A. was appointed as the Fiscal
Agent for the Truckee Donner Public Utility District Department of Water Resources
(DWR) State Revolving Fund loan. They were required by the Fiscal Services
Agreement to set up two accounts. The first account is for receiving principal and
interest payments from the District and forwarding the money to DWR. The second
account is to accumulate semi-annual reserve fund deposits from the District into a
reserve fund account.
3. NEW INFORMATION
When the account was established, the Fiscal Agent was not given direction as to
where to invest the funds. The intent at the time was to have BNY invest the funds in
LAIF. Both The Bank of New York Trust Company, N.A. and LAIF need
authorization from the Board to open an account and to invest the reserve funds in
that account.
4. FISCAL IMPACT
There is no direct fiscal impact.
5. RECOMMENDATION
Adopt the attached resolution to authorize the Fiscal Agent to open an account with
the State of California's Local Agency Investment Fund entitled the Truckee Donner
Public Utility District State Revolving Fund Reserve Fund and to invest reserve fund
deposits in this account. Authorize the Fiscal Agent, the Board President and the
Treasurer to execute all required documents.
Mary Chap an, dministrative Services Michael D. Holley, General Manager
Manager
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Public utility District
Resolution No. 2008 - XX
AUTHORIZING THE FISCAL AGENT FOR THE DISTRICT'S
DONNER LAKE WATER SYSTEM IMPROVEMENT LOAN
WITH THE STATE OF CALIFORNIA, DEPARTMENT OF
WATER RESOURCES TO OPEN THE RESERVE FUND
ACCOUNT WITH THE STATE OF CALIFORNIA
LOCAL AGENCY INVESTMENT FUND
WHEREAS, the Truckee Donner Public Utility District entered into a loan agreement with the
State of California, Department of Water Resources, relating to the Donner Lake water
system improvements; and
WHEREAS, on March 3, 2004 the Board of Directors appointed the Bank of New York
Western Trust Company(now Bank of New York Trust Company, N.A.)as the Fiscal Agent to
receive loan payments from the District and forward them to the Department of Water
Resources and to receive and maintain the required semi-annual reserve fund payments; and
WHEREAS, direction from the Board did not include authorization to invest the accumulating
reserve fund payments into an investment to earn interest for the term of the loan; and
WHEREAS, the Treasurer has made arrangements with the State of California, Local Agency
Investment Fund to have the Fiscal Agent open a trust account with LAI F for accumulating the
semi-annual reserve fund payments until the fund reaches a total of$800,852 as required by
the Fiscal Services Agreement;
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the Truckee Donner
Public Utility District that the Safe Drinking Water State Revolving Fund loan Fiscal Agent is
authorized to establish an account with the State of California Local Agency Investment Fund
which will be called the Truckee Donner Public Utility District State Revolving Fund Reserve
Fund Account;
BE IT FURTHER RESOLVED THAT any changes in the investment of the Truckee Donner
Public Utility District State Revolving Fund Reserve Fund Account may be made by the
Treasurer provided that the change is in accordance with the District's Investment Policy;
1 Res. 2008-XX
BE IT FURTHER RESOLVED THAT the Fiscal Agent, the Board President and the Treasurer
are authorized to execute any and all documents for the establishment and maintenance of
this account.
PASSED AND ADOPTED by the Board of Directors at a meeting duly called and held within
the District on the 2nd day of April 2008 by the following roll call vote:
AYES:
NOES:
ABSENT:
TRUCKEE DONNER PUBLIC UTILITY DISTRICT
By
Tim F. Taylor, President of the Board
ATTEST:
Michael D. Holley, District Clerk
2 Res. 2008-XX