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HomeMy WebLinkAbout08. Approve Resolution No. 2024-022 authorizing investment of monies in the Local Agendcy Investment Fund (LAIF) and removing the delegation of authority with the Contra Costa County Treasurer's Office and establishing staff as authorized signersO��ENTRAL S. MEETING DATE: AUGUST 15, 2024 BOARD OF DIRECTORS POSITION PAPER Page 1 of 5 Item 8. SUBJECT: APPROVE PROPOSED RESOLUTION NO. 2024-022 AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND ("LAIF"),AND REMOVING THE DELEGATION OF AUTHORITY WITH THE CONTRA COSTA COUNTYTREASURER'S OFFICE AND ESTABLISHING SPECIFIED CENTRAL SAN STAFF AS AUTHORIZED SIGNERS SUBMITTED BY: INITIATING DEPARTMENT: KEVIN MIZUNO, FINANCE MANAGER ADMINISTRATION -FINANCE REVIEWED BY: PHILIP LEIBER, DEPUTYGM -ADMINISTRATION Roger S. Bailey General Manager ISSUE Board authorization is required to update records with LAI F in conjunction with Central San's transition to an in-house treasury structure. BACKGROUND Many independent California special districts use the State of California "LAI F" managed investment pool to hold their money for short-term investment purposes that also provides to immediate liquidity, and which generally earns higher interest than other highly liquid fixed income investment alternatives. Central San currently has an account with LAI F, however the authorized parties were delegated to County of Contra Costa Treasury staff while Central San was a voluntary participant of the County Treasury pool. I n discussions with LAI F staff, it has been conveyed to Central San that the Board can return administrative responsibility to Central San staff by adopting the attached Resolution (Attachment 1) and an Authorization for Transfer of Funds Form (Attachment 2). While authorized signatures will continue to protect the integrity and safety of moving Central San funds, the change to Central San officers having the authorization will allow for a speedier process and ultimately help facilitate smooth transition to an in-house treasury structure. August 15, 2024 Regular Board Meeting Agenda Packet - Page 33 of 189 Page 2 of 5 ALTERNATIVES/CONSIDERATIONS The Board may opt not to approve the proposed resolution. Not doing so would result in the County maintaining control over Central San's LAI F account, which is not in alignment with the strategic objectives of implementing an in-house treasury function. The Board may also wish to add additional Central San staff or specific Board members as authorized parties with LAI F or make other changes. Doing so is not recommended as the General Manager, Treasurer (Deputy General Manager of Administration), and Finance Manager are the appropriate management -level staff for Central San considering its size (roughly 300 full time employees) and complexity. Smaller public agencies with fewer staff and less ability to accommodate proper segregation of duties would likely consider appointing members of the governing body, where more involvement in operational and administrative matters is common. FINANCIAL IMPACTS There are no direct financial impacts resulting from the adoption of the proposed Resolution. COMMITTEE RECOMMENDATION The Finance Committee reviewed this matter at its meeting on July 23, 2024 and recommended Board approval. RECOMMENDED BOARD ACTION Approve Resolution No. 2024-022 authorizing investment of monies in the LAI F state investment pool removing the delegation of authority with the Contra County Treasurer's Office and establishing specified Central San staff as authorized signers. Strategic Plan re -In GOAL FOUR: Governance and Fiscal Responsibility Strategy 1 - Promote and uphold ethical behavior, openness, and accessibility, Strategy 3 - Maintain financial stability and sustainability ATTACHMENTS: 1. Proposed Resolution 2. LAI F Authorization for Transfer of Funds August 15, 2024 Regular Board Meeting Agenda Packet - Page 34 of 189 Page 3 of 5 Attachment 1 RESOLUTION NO. 2024-022 A RESOLUTION OF THE BOARD OF DIRECTORS OF THE CENTRAL CONTRA COSTA SANITARY DISTRICT AUTHORIZING INVESTMENT OF MONIES IN THE LOCAL AGENCY INVESTMENT FUND WHEREAS, The Local Agency Investment Fund is established in the State Treasury under Government Code section 16429.1 et. seq. for the deposit of money of a local agency for purposes of investment by the State Treasurer; and WHEREAS, the Central Contra Costa Sanitary District (Central San) Board of Directors (Board) hereby finds that the deposit and withdrawal of money in the Local Agency Investment Fund in accordance with Government Code section 16429.1 et. seq. for the purpose of investment as provided therein is in the best interests of the Central San NOW, THEREFORE, IT BE RESOLVED, that the Board hereby authorizes the deposit and withdrawal of Central San monies in the Local Agency Investment Fund in the State Treasury in accordance with Government Code section 16429 et. seq. for the purpose of investment as provided therein. BE IT FURTHER RESOLVED, as follows: Section 1. The following Central San officers holding the title(s) specified hereinbelow or their successors in office are each hereby authorized to order the deposit or withdrawal of monies in the Local Agency Investment Fund and may execute and deliver any and all documents necessary or advisable in order to effectuate the purposes of this resolution and the transactions contemplated hereby: Roger A. Bailey Philip Leiber T. Kevin Mizuno General Manager Deputy General Manager/ Finance Manager Treasurer Section 2. This Resolution shall remain in full force and effect until rescinded by the Board by Resolution and a copy of the Resolution rescinding this Resolution is filed with the State Treasurer's Office. August 15, 2024 Regular Board Meeting Agenda Packet - Page 35 of 189 Page 4 of 5 Central Contra Costa Sanitary District Resolution No. 2024-022 Page 2 of 2 PASSED AND ADOPTED this 15th day of August 2024 by the Board of Directors of Central San by the following vote: AYES: Members: NOES: Members: ABSENT: Members: Michael R. McGill President Pro Tem Central Contra Costa Sanitary District County of Contra Costa, State of California COUNTERSIGNED: Katie Young, CPMC, CMC Secretary of the District Central Contra Costa Sanitary District County of Contra Costa, State of California Approved as to form: Joan Cox, Esq. Counsel for the District August 15, 2024 Regular Board Meeting Agenda Packet - Page 36 of 189 SPY IN YES,, lV / - 9FfrV.111 11Q0151,0. Effective Date 8/1/2024 California State Treasurer's Office Local Agency Investment Fund (LAIF) Authorization for Transfer of Funds Agency's LAIF Resolution # Agency Name Central Contra Costa Sanitary District or Resolution Date Page 5 of 5 PRINT CLEAR Attachment 2 LAIF Account # 70-07-001 8/1/2024 ONLY the following individuals whose names appear in the table below are hereby authorized to order the deposit or withdrawal of funds in LAIF. This authorization REPLACES AND SUPERSEDES all prior authorizations on file with LAIF for the transfer of funds. Name Title Roger A. Bailey General Manager Philip Leiber Deputy General Manager / Treasurer T. Kevin Mizuno I Finance Manager Two authorized signatures required. Each of the undersigned certifies that he/she is authorized to execute this form under the agency's resolution, and that the information contained herein is true and correct. Signature Belinda Zhu Print Name Assistant County Treasurer Title 925-608-9550 Phone Number Please provide email address to receive LAIF notifications. Name Signature Ammy Pluth Print Name Investment Officer Title 925-608-9550 Phone Number Email F. Kevin Mizuno kmizuno@centralsan.org Diana Diaz ddiaz@centralsan.org Please email the completed form for review to laif@treasurer.ca.gov and allow 2 days for a response. DO NOT mail the original form until you receive approval. Mail the approved form to: CA State Treasurer's Office Local Agency Investment Fund P.O. Box 942809 Sacramento, CA 94209-0001 ��� J 1 �A� %'� ���' is 0 �, r:�l ���! �ia: U �,.�.'t (: IR :1 /':a i . • :a • 85of 89 STO-LAIF-4008 Revised 1/2024