HomeMy WebLinkAboutStaff Report 03/12/2001 (3) CITY OF PETALUMA,,CALIFORNIA.
AGENDA BILL • 2
Agenda.Title: Meeting Date:
Investment In California Asset Manageinent-Program March 5, 2001
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Department: Director: Contact Person: • Phone.Number:
Finance' William.J. Thomas William.J Thomas' , 778-4323
Cost"of Proposal:.None Account.Number: N/A
Amoiint:Budgeted: N/A Name of Fund:
Attachments to Agenda Packet Item: Resolution Number 91-;169
Summary Statement: The'City ofPetaluma 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 C'aliforriia Asset Management Program.
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Council.Priority: THIS-AGENDA1TEM 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`Citp Connell Action/Suggested Motion : Adopt the Resolution
Reviewed by Finance Director: Revle _;;a <_`tornev: Approved byrCity Manager:
4atje: • Date:
7/19 161
odav's.Date: Revision #.lr l a Revised:. File Code:
February 9, 2001 # saageddaCamp.
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CITY OF PETALUMA, CALIFORNIA
:DATE
AGENDA REPORT
• FOR'
INVESTMENT IN'CALIFORNIA.ASSET.MANAGEMENT PROGRAM
1. EXECUTIVESUMMARY: The:Califomia,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 bonchproceeds. The invested funds would
earn a market rate of return and.the Program-would perform a rebate calculation to determine if a
liability was due for arbitrage. .The City ofPetaluiria, CA4adoptedlResolution Number 91-169 to
join other public`agencies bypuIehasing•shares in`thie Program with•`bond proceeds.
2. BACKGROUND: The•Program wacritodified.in 1997-to allow public agencies to invest
monies from any source and the narte was'changed to.California•Asset'Management Program.
The'Program is now^a;local agency investment pool, similar:to the one offered bythe state of
California„and it stilloffers the arbitrage liability calculation required for bond proceeds. The
Program meets 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 amount is close:to that;maximum: The;rate of return from the Program has been within
• j ten basis points';of that earned in LAIF during:the,past two years The;Program offers safety, •
liquidity and a reasonable rate return'on investments The:City of Petaluma requests adoption
of this resolution, which Will.permittEe:opening of an investment•:account.
3. ALTERNATIVES: None
4. FINANCIAL IMPACTS: None
5: CONCLUSION: The'Progiam offers safety,;liquidity and a reasonable rate of return on
invested money. An;investment accountWith this Program will expand the City's opportunities
for investments that follow theadopted Investment,Policy.
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6. OUTCOMES'OR PERFORMANCE:MEASUREMENTS THAT WILL
INDENTIFY'SUCCESS OR COMPLETION 'The City of Petaluma's goal is to reach
the maximum rateiof return on idle cash while.rimaintaining safety and liquidity.
7. RECOMMENDATION: Adopt the Resolution
•� s:/agenda/Camp
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Resolution No. N.C.S.
2 of the City of Petaluma, California
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AUTHORIZINGTHE CITY OFTETALUMA TO:INVEST • •
• SURPLUS FUNDS„IN SHARES•OF THE
6 • CALIFORNIA ASSET MANAGEMENT'TRUST
7 AND IN'INDIVIDUAL PORTFOLIOS
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13 WHEREAS, the City of Petaluma is a Participant-in the.California.Asset=Management..Trust
14 (the `'Trust") and is authorized to invest bond proceeds in the Trust and in Individual Portfolios
15 managed by the investment Advisor to the Trust ("Individual Portfolios")' and
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11 7 WHEREAS, the Trust will now accept funds.for investments and the'City of
18 Petaluma desires1to',investtsurplus funds in the.Trust,and in Individual Portfolios;
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20 NOW, THEREFORE, BE IT RESOLVEDby the City Council of the City ofPetaluma•as •
21 follows:
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23 Section The City of Petaluma is hereby authorized to purchase shares in.the;Trust=from
24 time to,time with available;surplus funds of the,City of Petaluma;,and to redeem some orallsof those
`)shares'from time to timeras such proceeds are needed. •
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27 Section The'Cityof Petaluma is,hereby authorized,to invest available surplus funds of the.
28 Cityof Petaluma from time;5to time in one or more:Individual Portfolios.
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30 •Section 3, The appropriate',officers, agents and employees of the City of Petalumaareshereby
31 authorized 32 made and exec to any and:all certificates.tes. r qu sit onshagrements, notices, consents,,take.all actions arrants and
and
33 other documents,which they, or any of them, might deem necessary or appropriate in,orderto
34 accomplish the purposes of this Resolution.
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36 Section 4. Thi SiResolutionshall:take:effect at the earliest date permitted by law.
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38 Under the power;and authority conferred,upon this Council lby theiCharter of said City.
39 REFERENCE: I hereby certify the foregoing Resolution was introdu'eed'and adopted:.by the
40 Council of the City of Petaluma at a Regular-meeting:on. 2000 Approved as,to
41 by followingvote: forms .
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44. City Attorney
45 AYES:
46 NOES`
47 ABSENT:
49 ATTEST:
50 City Clerk I Mayor
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52 Rcsolutib[P No. NCS
Resolution ;No. 91-169 N.C.S.
of the City of Petaluma, California
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t, RESOLUTION AUTHORIZI_NG PARTICIPATION IN THE
2 CALIFORN IA,ARBITRAGEMANAGEMENT'TRUST
3 • AND To INVEST IN,SHARES OF THE TRUST
4 AND IN INDIVIDUAL PORTFOLIOS
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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") provid'es'that,if authorized by their legislative-'or other governing
10 bodies, two or more public agencies by agreeinent'may jointly exercise any
11 power common to the contiadtirig parties'and
12 WHEREAS, underSe.ction°65.00 of the Joint Exercise of Powers Act
13 a "public agency" includes..but,is not limited to any California county, county
} 14 boardof',education,'countysuperinteifdent 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 tennis defined in Section53630.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'536S5 thereof to invest all money belonging to, or in the
fl custody of,,the local agency'in,.eertain 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, b y a Decla'ration>of Trust,,made as of
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Re' No91-169 <C '- •
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 of the Trust by adopting and executing the.
9 Declaration of Trust;,ExhibitA 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 attached hereto, describing the Trust and
; 14 the Individual Portfolios to be managed by the Investment Advisetto the
1"5 Trust (the"Information Statement");,
16 NOW, THEREFORE BE IT RESOLVED, the City Council of the
17 City of Petaluma.as'follows:
18 Section 1. City of Petalutna,shall join with other public agencies
19 pursuantto and in accordance with the Joint Exercise of Powers Act by
20 executing the Declaration of.Trust and thereby becoming a Participant in
21 the Trust,which Declaration of Trust is hereby approved and adopted. A
22 copy of' he Declaration of Trust shall be filed with the minutes of the
23 meeting aiwhich;this Resolution was adopted. The City Manager is hereby
24 authorized to execute, and the City Clerk is herebyauthorized to attest and
25 deliver, the Declaration of Trust; in substantially the form presented at this
26 .meeting.
Reso. 91-169 N.C.S.
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I Section 2.. The City of Petaluma'is hereby authorized to purchase
2 shares in the trust from time to time withavailable'bohitproeeeds of the
3 City of Petaluma; and:to redeentsome or.all of those sharesirom.time to
4 time as such proceeds are nee'ded.fOr the piifposesibt•which suCh bonds-
5 were issued. •
6 legnona. The City ofTetalurna is hereby.authorized to invest
7 available bond proceed k of the City of PetalumaAreiti time to time in one or
8 more Individual Portfdlios managed'by theJnvestmerit Advier to the Trust
9 and described irrthe InfOrritatibm;Staternent. ,
10 Section 4. The appropriate officers; agerits.land employees of City of
11 Petaluma are hereby authorized and cliretteehinthe,name and on behalf of
12 City of.Petalumalajake all,actionnnd to makeland execute any and all
13 certificates, requisitions, agreements, notiCes„cOnsents,Warranti and other
) 14 documents, which they; or any might deem necessary or
15 appropriate in order to aecontplish,the pm:poses/Millis Renolution.
16 Section 5. This Resolution shall.-talce effeet Upob adoption.
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Under•the.pnvierrindlauthority conferied upon this,entuthiThSy the Cliarter.ofIsaid City.
REFERENCE: Thereby certifytheforegoing Resolution was introduced and adopted by the Approved as to
Council of the City of Petalimarvat;a .(Regular) (224,Xxiiica—appszemtsa meeting form
dit.the 17th. day of ...„... June . ..........„ p..21„ by the
zfollinving vote:
City Attorney
AYES: Read, Davis, Woolsey, Sobel, Nelson, Vice Mayor Cavanagh
proES: 0
ABSENT: M: or :feSS:
A'n'EST: Alt 'Or - /
y Clerk MI Vice Mayor
CA'10-85 .Res.Na VCS