HomeMy WebLinkAbout2 CITY OF PETALUMA,;CALIFORNI_A
AGENDA BILL . 2
Agenda Title: Meeting Date:
• Investment m'California Asset Management.Program March 5, 2001
Departineiit` Director: Contact Person: Phone Number:
Finance William J. Thomas William J. Thomas 778-4323
Costof Proposal: None Account Number: N/A
Amount Budgeted:N/A Name of Fund:
Attachments to Agenda Packet;Item: Resolution Number 91-169
Summary Statement: The City of Petaluma invests cash in accordance with the Investment Policy
that is adopted annually by the City Council. The City has been 'investing bond proceeds with the
California Asset Management Program. (Program) since 1991. The Program was modified in 1997 to
allow public agencies to invest.monies from any source. Participation in the Program requires the formal
approval of the governing body by Resolution. The City requests this approval to open an investment
account with the California Asset Management Program.
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Council Priority: THIS AGENDA ITEM IS CONSIDERED TO BE PART OF, OR NECESSARY To, ONE OR
MORE OF THE 1999-2000 PRIORITIES.ESTABLISHED BY THE CITY COUNCIL ON JANUARY 30, 1999
AND MARCH 18, 2000
Priority(s):
Recommended City Council Action/Suggested'Motion : Adopt the Resolution
Reviewed by Finance.Director: Reviek.::, :..'ty sstornev: Approved b¢-City Manager:
41 late: /jno�� : // Date:
Liii 1 *1161 .�tQ
odav's Date: Revision # . Ida - Revised: rile Code:
February 9, 2001 # S/agenda/Camp
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CITY OF PETALUMA, CALIFORNIA
DATE
• AGENDAREPORT
FOR
INVESTMENT IN CALIFORNIA ASSET MANAGEMENT PROGRAM
,l. EXECUTIVE SUMMARY: The California Arbitrage Management Program(Program)
was formed in 1991 under the Joint-Exercise of Powers Act by several public agencies. This
;!Program-was originally'designed for the investment of bond.proceeds. The invested funds would
learn a!market rate of return and'the Program would perform a rebate calculation to determine if a
liability was due for arbitrage. The City of Petaluma, CA adopted`:Resolution Number 91-169 to
• join other public agenciesby purchasing shares in the Program with bond proceeds.
2. BACKGROUND:, The Program was modified in 1997 to allow public agencies to invest
monies from any source and thename was changed to California.Asset Management Program.
The Program is now a local agency investment pool, similar to the one offered by the state of
California, and it still offers the arbitrage liability calculation'required for bond proceeds. The
Program meets the criteria in the City of Petaluma's Investment-Policy that was adopted for
2001. The City currently invests in the Local Agency Investment Fund (LAIF) and purchases
federal agencies. The LAIF permits investment of public money up to $30,000,000. The City's
invested amountiis close to that maximum. The rate of return from the Program has been within
• ten basis points of that earned in LAIF during the past two years. The Program offers safety,
liquidity and a reasonable rate of return+on•investments. The City-of Petaluma requests adoption
of this resolution, which will permit the opening of an investment account.
3. ALTERNATIVES:: None
4. FINANCIAL IMPACTS:. None
5. CONCLUSION: The Program offers safety, liquidityand•a reasonable rate of return on
invested money. .An investment account with•this Program will expand the City's opportunities
for investments that follow the adopted'Investment Policy.
6. OUTCOMES OR.PERFORMANCE MEASUREMENTS THAT WILL
INDENTIF.Y SUCCESS OR.COMPLETION:, The City of Petaluma's goal is to reach
the maximum rate of-return on idle cash while maintaining safety and liquidity.
• 7. RECOMMENDATION: Adopt the Resolution
s:/agenda/Camp
1
Resolution No. N.C.S.
•
2 of the City of Petaluma, California.
3
4 AUTHORIZING THE CITY OF PETALUMA TO INVEST •
5 SURPLUS FUNDS IN.'.SIIARES:OF THE
6 CALIFORNIA ASSET MANAGEMENT TRUST
7 AND IN INDIVIDUAL PORTFOLIOS
8
9
10
11
12
13 WHEREAS, ther.Cityof Petaluma,is a Participant in the California Asset Management,Trust
14 (the"Trust") and is`authorzed to invest bond proceeds:in the Trust and in Individual Portfolios '
15 managed by the investment Advisor to the Trust (' Individual Portfolios")' and
16
17 WHEREAS, the Trust will now accept,surplus,funds for investments and the'City of
18 Petaluma desiresto'invest surplus funds in the Trust and in Individual Portfolios;
19
20 NOW, THEREFORE, BE IT RESOLVED'bythe City Council of the City'of Petaluma as
21 follows:
2-
23 Section]. The City of Petaluma is:hereby authorizetIto purchase shares in,the:Trust from
24 time to time with available surplus funds of the City of Petaluma, and to redeem'somelor all of.those
25 shares from time to time;asauch proceeds are:needed. •
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26
27 Section 2. The City of Petaluma is.hereby authorized to invest available surplus funds of the
28 City of Petaluma from time to time in one or more Individual Portfolios.
29.
30 Section 3. The appropriate officers, agentsand employees of the City of Petaluma are hereby
31 authorized and,directed in the name and on behalf of the City of Petaluma to take all actions and to
32 made and execute.any and'all certificates, requisitions;agreements; notices, consents, warrants and
33 other documents, which they, or any of them, might deemonecessary or appropriate in order to
34 accomplish the purposes of this Resolution.
35
36 Section 4. This Resolution.shall take effect at'the earliest date permitted-bylaw.
37
38 Under the power and authority,conferred upontthis Council by the Charter of said_City.
39 REFERENCE: I hereby,certifwthe foregoing Resolution was_introduced and adopted'by the
40 Council of the City'of Petaluma at a Regular meeting on 2000 Approved as to
41 by the•following vote: form:
42
43
44 City.Attorney
45 AYES:
46 'NOES:
47 ABSENT` •
48
49 ATTEST:
50 City Clerk Mayor'
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51
52 Resolution No. NCS
Resolution No. 91-169 _ N.C.S.
r of the City of Petalurria, California
•
1 RESOLUTION AUTHORIZING PARTICIPATION IN THE
2 CALIF,ORNIA ARBITRAGE MANAGEMENT TRUST
3 AND TO INVEST IN SHARES OF THE TRUST
4 AND IN INDIVIDUAL PORTFOLIOS
5
6
7 WHEREAS, Section 6502 of Title 1, Division 7, Chapter 5 of the
8 Government Code of the"State of California (the "Joint Exercise of Powers
9 Act") provides that, if authorized by their legislative or other governing
10 bodies, two or more public agencies by agreement may jointly exercise any
11 power common to the contracting parties; and
12 WHEREAS, under Section 6500 of the Joint Exercise of Powers Act
13 a "public agency" includes but is.not limited to any California county, county
• 14 board of education, county superintendent of schools, city, city and county,
15 public corporation,•public district, regional transportation commission or
16 state department or agency; and
17 WHEREAS, public agencies which constitute local agencies, as that
18 term is defined in Section 53630 of Title 5, Division 2, Part 1, Chapter 4,
19 Article 2 of the Government Code of the State of California, are authorized
20 pursuant to Section 53635 thereof to invest all money belonging to, or in the
21 custodysof, the local agency in certain specified.investments; and
22 WHEREAS, the California Arbitrage Management Trust (the
23 "Trust") was established, pursuant to and in accordance with the Joint
24 Exercise Powers Act, by a Declaration of Trust, made as of
• .
Res.,No91-169 N.C.S.
1 December 15, 1989 (the "Declaration of Trust") by Monterey Peninsula •.
2 Water Management District and Placer County, as the initial Participants,
• 3 as a vehicle for public agencies to jointly exercise their common power to
4 invest bond proceeds, and to secure related record keeping, custodial and
5 Federal arbitrage rebate calculation services; and
6 WHEREAS; pursuant to and in accordance with the Joint Exercise
7 of Powers Act, the City of Petaluma desires to join the other public agencies
8 which are or will be Participants,ofthe Trust by adopting and executing the
9 Declaration of Trust, Exhibit-A attached hereto; and
10 WHEREAS,.the City of Petaluma is a public agency as that term.is
11 defined in the Joint Exercise of Powers,Act; and
12 WHEREAS, there has been presented to this meeting an
13 Information Statement, Exhibit,B.attachedhereto, describing the Trust and
14 the Individual Portfolios to be managed by the Investment Adviser to the •
15 Trust (the "InformationStatenient");
16 NOW, THEREFORE BE IT RESOLVED,the City Council of the
17 City of Petaluma as follows:
18 .Section 1. City of Petaluma shall join with other public agencies
19 pursuant to and in accordance with the Joint Exercise of Powers Act by
20 executing the Declaration of Trusts and thereby becoming a Participant in
21 the Trust, which Declaration of Trust is hereby approved and adopted. A
22 copy of the Declaration of Trust'shall be filed with the minutes of the
23 meeting at which this Resolution was adopted. The City Manager is,hereby
24 authorized to execute, and the City Clerk is hereby authorized;to,:attest;and
25 deliver, the;Declaration of'Trust,;in substantially the form presented at this
26 meeting.
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Reso. 91-169 N.C.S.
1 • Section 2. The City of Petaluma is hereby authorized to purchase
2 shares in the Trust from time to time with available bond proceeds of the
3 City of Petaluma, and to redeem some or all of those shares from time to
4 time as such proceeds are needed for the purposes fOr which such bonds
5 were issued.
6 Section 3. The City of Petaluma is hereby authorized to invest
7 available bond proceeds of the City of Petaluma frorn time to time in one or
8 more Individual Portfolios managedby the Investment Adviser to the Trust
9 and described in the Information Statement.
10 Section 4. The appropriate officers, agents and employees of City of
11 Petaluma are hereby authorized'and directed in the name and on behalf of
12 City of Petaluma to take all actions and to make and execute any and all
13 certificates, requisitions, agreements, notices, consents,warrants and other
41 14 documents, which they, or any of them, might deem necessary or
15 appropriate in order to accomplish the purposes of this Reolution.
16 Section 5. This Resolution shall take effect upon adoption.
Under the povver and authority conferred upon this Council by the Charter of said City.
REFERENCE: I hereby certify the foregoing Resolution was introduced and adopted by the Approved as to
form
Council of the City of Petaluma at a (Regular) (11.11)EtWO4antlidaa meeting
on the day of June , io.S1, by the
following vote:
City Attorney
AYES: Read, Davis, Woolsey, Sobel, Nelson, Vice Mayor Cavanagh
•NOES:
ABSENT: M: Or Allf. :1ISS -4/
ATTEST: ‘40/
y Clerk Ma Vice Mayor
council File.
CA 10 85 Res.Na N C S