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HomeMy WebLinkAboutResolution 1994 - 0157RESOLUTION NO.94-157 ADOPTING FINANCIAL POLICIES APPLICABLE TO INVESTMENT PROGRAMS AND PROCUREMENT ACTIONS A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF COUNTY SANITATION DISTRICTS NOS.1,2,3,5,6, 7,11,I3AND 14 OF ORANGE COUNTY,CALIFORNIA, ADOPTING FINANCIAL POLICIES APPLICABLE TO INVESTMENT PROGRAMS AND PROCUREMENT ACTIONS WHEREAS,the County Sanitation Districts of Orange County,in accordance with the Joint Ownership,Operation and Construction Agreement,of which each District is a participating member,have utilized the services of the Orange County Treasurer for over 40 years to manage and administer the Districts’monetary deposits and to invest their surplus monies;and, WHEREAS,the program of utilization of the County Treasurer has been extremely successful and beneficial to the Districts over the period of years;and, WHEREAS,on December 6,1994,the County of Orange and the Orange County Treasurer’s Commingled Investment Pool Fund filed a Petition in the United States Bankruptcy Court,seeking protection from creditors and proposing to reorganize and adjust its investment portfotio and debt obligations,pursuant to Chapter 9 of the United States Bankruptcy Code;and, WHEREAS,the Districts,at the time of the bankruptcy petition filing,had approximately $450,000,000.00 on deposit with the County Treasurer for purposes of investments,which were managed by the County Treasurer;and, WHEREAS,it appears that the monetary assets of the Districts are at a risk of suffering a significant devaluation,based on the investment practices and programs of the County Treasurer;and, WHEREAS,the Boards of Directors have determined that the interests of the Districts and the management of their financial affairs require immediate actions to adjust past practices and programs,including the appointment of their own Treasurer, which has been effected by the adoption of a separate Resolution this date by the Boards of Directors;and, WHEREAS,the Boards of Directors wish to provide for immediate new financial policies,practices and programs,so as to best preserve the assets of the Districts,to meet their obligations,and preserve their credit rating. NOW,THEREFORE,the Boards of Directors of County Sanitation Districts Nos. 1,2,3,5,6,7,11,13 and 14 of Orange County,California, DO HEREBY RESOLVE,DETERMINE AND ORDER: Section 1 That the Districts are authorized to enter into an agreement to join with other public agencies who are depositors in the County of Orange Commingled Investment Pool Fund,to form a coalition for purposes of coordination of efforts and information relating to the bankruptcy petition filed by the County of Orange. Section 2 That the Districts authorize the sum of not to exceed $25,000.00 as their contributive share to any such coalition to engage special legal counsel that would be retained by the coalition for purposes related to the bankruptcy petition. 2000-00026 59021 2 Section 3 That the Districts authorize the retaining of the Firm of Bronson, Bronson &McKinnon as Special Bankruptcy Counsel to represent the Districts,and General Counsel is authorized to prepare and execute the necessary engagement letter in accordance with the proposal and fee structure submitted to the Districts by Special Bankruptcy Counsel. Section 4 That the Bank of America,NT&SA is hereby approved as a depository for the Districts’funds,as authorized by California Government Code Sections 53601 and 53635.The Districts’Treasurer is authorized to open appropriate accounts with the depository for payroll purposes and operating expenditure purposes. The account shall be secured by collateral,as required by law,and invested solely in short-term money market funds. Section 5 That in the event Bank of America,NT&SA is unable or unwilling to serve as a depository for the Districts’monies,the Districts’Treasurer is authorized to open accounts with First Interstate Bank or Wells Fargo Bank,which Banks are hereby named as depository banks for the Districts’monies. Section 6 That the Districts’Treasurer is directed to establish associated accounting procedures and to engage the services of KPMG Peat Marwick to assist in the development. Section 7 That the General Manager and General Counsel are authorized to execute an agreement to retain the services of Special Bond Counsel Brown &Wood, San Francisco,California,to assist in all prior debt financing programs of the Districts, in the event of conflict with the Bond Counsel of record for all such transactions. 2000-00026 59021 3 Section 8 That the Finance and Personnel Committee;the Districts’General Manager;the Districts’Treasurer/Finance Director and related Staff;and the Districts’ Consultant,Public Financial Management Company,are directed to proactively communicate and confer with the rating agencies by developing an on-going communication forum and dialog to include a continual exchange of information between the agencies and the Districts,and for the holding of meetings with the rating agencies,as needed,in the future. Section 9 That an Action Team is hereby established,consisting of the Executive Committee of the Joint Boards of Directors,the Districts’Staff,General Counsel and Consultants,together with retained Special Counsel. Section 10 That the Steering Committee is authorized to retain the services of an Investment Advisor Consultant,and the General Manager and General Counsel are authorized to execute the agreement for services. Section 11 That the Steering Committee is authorized to act,on behalf of the Joint Boards of Directors,for expenditures up to $50,000.00 related to the County of Orange bankruptcy proceedings,or the Districts’own financial programs. Section 12 That the General Manager,Treasurer/Finance Director and Staff are directed,in conjunction with Consultants,to seek an alternative source of funds for the Districts’utilization in meeting their obligations. PASSED AND ADOPTED at a Special Meeting of the Joint Boards of Directors held December 8,1994. 2000-00026 59021 4 STATE OF CALIFORNIA) )SS. COUNTY OF ORANGE I,PENNY KYLE,Secretary of the Boards of Directors of County Sanitation Districts Nos.1,2,3,5,6,7,11,1 3 and 14 of Orange County,California,do hereby certify that the foregoing Resolution No.94-1 57 was passed and adopted at a special meeting of said Boards on the 8th day of December,1 994,by the following vote,to wit: AYES:Fred Barrera,George Brown,John C.Cox,Jr.,Jan Debay,Barry Denes,Burnie Dunlap,Norman Z.Eckenrode,James M.Ferryman, James H.Flora,Don R.Griffin,John M.Guilixson,Barry Hammond, Victor Leipzig,Wally Linn,Thomas E.Lutz,Pat McGuigan,Ted R. Moreno,Margie L.Rice,Thomas R.Saltarelli,Sal A.Sapien,George Scott,Sheldon S.Singer,William G.Steiner,Peer A.Swan,Charles E. Sylvia,George L.Zlaket NOES:None ABSENT:Cecilia Age,Chris Norby,Arthur Perry,lrv Pickier IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official seal of County Sanitation District No.1 on behalf of itself and Districts Nos.2,3,5,6,7,11,1 3 and 14 of Orange County,California,this 8th day of December,1994. Penny Kyle,Se,qtafy Boards of Dire~4&s o ounty Sanitation Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,California torms/941f 1 5.157