HomeMy WebLinkAboutResolution 1996-0079RESOLUTION NO.96-79
ADOPTING DISTRICTS’INVESTMENT POLICY
A JOINT RESOLUTION OF THE BOARDS OF DIRECTORS OF COUNTY
SANITATION DISTRICTS NOS.1,2,3,5,6,7,11,13 AND 14 OF ORANGE
COUNTY,CALIFORNIA,ADOPTING DISTRICTS’INVESTMENT POLICY;
ADOPTING INVESTMENT PERFORMANCE REPORTS AND SCHEDULE OF
FREQUENCY OF INVESTMENT PERFORMANCE REPORTS;REPEALING
RESOLUTIONS NOS.95-14,95-15 AND 95-78;AND RESCINDING MINUTE
ORDER OF THE BOARDS OF DIRECTORS OF MAY 24,1995 APPROVING
DISTRICTS’INVESTMENT POLICY
,.
WHEREAS,on February 8,1995,the Boards of Directors adopted Resolutions Nos.95-
14 and 95-15,approving interim investment policies following the Orange County bankruptcy,
and before the Districts’permanent Investment Policy was adopted;and,
WHEREAS,on May 24,1995,the Boards of Directors adopted,by Minute Order,a
comprehensive Investment Policy;and,
WHEREAS,on July 26,1995,the Boards of Directors adopted Resolution No.95-78,
establishing specific performance benchmarks and objectives,together with a schedule of
frequency of investment performance reports;and,
WHEREAS,pursuant to California Government Code Section 53646,the Districts are
required to review their Investment Policy annually and re-adopt their Policy at a public meeting,
which Policy will establish specific performance benchmarks and objectives,and specific
performance monitoring and reporting.
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 Boards of Directors hereby adopt the Investment Policy of the
County Sanitation Districts of Orange County,California,as set forth on Exhibit “A”,attached
hereto and incorporated herein by reference.
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Section 2 That the Boards of Directors hereby adopt the following specific
performance benchmarks for their two investment funds in accordance with Section 14.0 of the
Districts’Investment Policy:
LIQUID OPERATING MONIES -The Short-Term Operating Fund will be
compared to the three-month T-bill rate,and the Callan Active Cash Flow Income Style
Group.The Callan Active Cash Fixed Income Style Group represents a peer group of
,:managers who operate with a maximum maturity of one year.
LONG-TERM OPERATING MONIES -The Long-Term Operating Fund will be
compared to the Merrill Lynch Government and Corporate One-to-Five Year Maturity
Index and to the Callan Defensive Fixed Income Style Group.
Section 3 That the Boards of Directors hereby adopt a performance monitoring and
reporting schedule,as required by Section 15.0 of the Districts’Investment Policy,which
schedule is attached hereto as Exhibit “B”and incorporated herein by reference.
Section 4 That Resolutions Nos.95-14,95-15 and 95-78 are hereby repealed,and
the Minute Order of the Boards of Directors of May 24,1995,approving the Districts’Investment
Policy is hereby rescinded.
PASSED AND ADOPTED at a regular meeting held September 25,1996.
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EXHIBIT “B”
COUNTY SANITATION DISTRICTS OF ORANGE COUNTY
PERFORMANCE MONITORING &REPORTING
FOR THE
DISTRICTS’INVESTMENT PROGRAM
POLICY
REFERENCE PERFORMANCE CHARACTERISTIC REPORTING PARTY*
PIMCO MELLON CALLAN
15.1.1 Cost and market value of the portfolio (monthly mark-to-market).M,Q M,Q Q
15.1.2 Modified duration of the portfolio compared to benchmark.M,Q Q
15.1.3 Dollar change in value of the portfolio for a 1%change in interest rate.M,Q Q
15.1.4 Percent of portfolio invested in reverse repurchase agreements,and a schedule which matches the
maturity of such reverse repurchase agreements with the cash flows which are available to repay
them at maturity.M,Q
15.1.5 For the Liquid Operating Monies account only,the percent of portfolio maturing within 90 days.M,Q Q
‘15.1 .6 Average portfolio credit quality.M,Q Q
15.1.7 Percent of portfolio with credit ratings below ~A”by any rating agency,and a description of such
securities.‘M,Q ‘•Q
15.1.8 Usting of any transactions or holdings which do not comply with this policy or with the California
Government Code.M,Q
15.1.9 Time-weighted total rate of return for the portfolio for the ixior three months,twelve months,year
to-date~and since inception compared to the benchmark returns for the same periods.M,Q Q
ADDL Comparison of portfolio performance to market index benchmark.M,Q Q
ADDL**Comparison of Manager’s performance to peer group benchmark.‘9
ADDL**Monitoring of organizational and structural changes of investment management firm.‘Q
ADDL**Audit portfolios for compliance with investment policy guidelines.Q
15.1.10 CSDOC will report if sufficient funds are available for it to meet operating expenditure requirements for the next six months,or if not,state the
reasons for the shortfall.
Notes
=Monthly
Q=Quarterly
,
ADDL =Monitonng of Additional Performance Characteristics ~
STATE OF CALIFORNIA
)SS.
COUNTY OF ORANGE )
I,PENNY KYLE,Secretary of the Boards of Direbtors of County Sanitation
Districts Nos.1,2,3,5,6,7,11,13 and 14 of Orange County,California,do hereby
certify that the foregoing Resolution No.96-79 was passed and adopted at a regular
meeting of said Boards on the 25th day of September,1996,by the following vote,to
wit:
AYES:Walter K.Bowman,George Brown,John Collins,John C.Cox,Jr.,
Jan Debay,Barry Denes,Shirley Dettloff,Burnie Dunlap,
Norman Z.Eckenrode,James M.Ferryman,James H.Flora,
Don R.Griffin,Barry Hammond,Victor Leipzig,Wally Linn,
Pat McGuigan,Mark A.Murphy,Chris Norby,Margie L.Rice,
Thomas R.Saltarelli,Sal A.Sapien,Sheldon S.Singer,
William G.Steiner,Peer A.Swan,Charles E.Sylvia,
Daniel T.Welch,Bob Zemel
NOES:None
ABSENT:None
IN WITNESS WHEREOF,I have hereunto set my hand and affixed the official
seal of County Sanitation District No.I on behalf of itself and Districts Nos.2,3,5,6,7,
II,13 and 14 of Orange County,California,this 25th day of September,1996.
•
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Penny Kyle,S11c e’t~ry
Boards of Dir~ctfr&jounty Sanitation Districts
Nos.1,2,3,5,~,7,11,13 and 14 of
Orange County,California
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