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COSTA MESA SANITARY DISTRICT
MINUTES OF BOARD OF DIRECTORS SPECIAL MEETING
AUGUST 25, 2015
CALL TO ORDER The Board of Directors of the Costa Mesa
Sanitary District met in special session on
August 25, 2015 at 9:00 A.M. at 628 W. 19th
Street, Costa Mesa.
ROLL CALL DIRECTORS PRESENT: Michael Scheafer, Arthur Perry, Robert
Ooten, Arlene Schafer, James Ferryman
DIRECTORS ABSENT: None
STAFF PRESENT: Scott Carroll, General Manager; Marc Davis,
District Treasurer; Wendy Davis, Finance
Manager; Noelani Middenway, District Clerk;
Kaitlin Tran, Accountant
OTHERS PRESENT: Jim Mosher, Resident
PUBLIC COMMENT
President Scheafer invited members of the public to address the Board.
Jim Mosher, resident, suggested making the District's investment policy easier to find
on the District's website and commented on the City of Newport Beach Finance
Committee's discussions regarding the possible annexation of Newport Beach's sewer
system to a special district.
Discussion followed regarding the potential annexation.
Seeing no one further, President Scheafer closed public comments and deferred to
Marc Davis, District Treasurer, for a report.
INVESTMENT POLICY
Mr. Davis presented details of the District's allowable investments, investment
technology, investment objectives, investment philosophy, placing investments, current
COSTA MESA SANITARY DISTRICT PAGE 2
MINUTES OF THE BOARD OF DIRECTORS SPECIAL MEETING
HELD AUGUST 25, 2015
environment, and District impact.
Discussion ensued regarding allowable investments, investments in commercial papers,
CalTrust and supranationals.
Mr. Davis outlined the five objectives when purchasing investments including legality,
safety, liquidity, diversification and yield.
Wendy Davis, Finance Manager, noted that the custodial company had been changed
and has saved the District a significant amount of money.
Discussion ensued regarding budgeting for capital improvement projects.
Scott Carroll, General Manager, suggested that the Board consider investing in CalTrust
to potentially increase earnings.
President Scheafer recessed the meeting at 10:12 A.M. and reconvened at 10:17 A.M.
Mr. Davis provided a demonstration of the eConnect Direct system and further
discussed the current investment environment and District impact.
General Manager Carroll requested direction from the Board on increasing the District's
return by 1.5 percent.
Discussion followed and the Board of Directors expressed favor of looking into
investment options to increase the District's rate of return.
President Scheafer invited members of the public to provide comment.
Mr. Mosher commented regarding rates of return and amending the District's
Investment Policy to include supranationals as an allowable investment. He also
commented that the draft of the revised Investment Policy available at the time showed
a limi being placed on the allowable investment in supranationals (on page 6) but did
not add them to the list of authorized investments on page 2.
The Board of Directors concurred to amend the Investment Policy.
ADJOURNMENT
There being no further business to come before the Board, President Scheafer
adjourned the meeting at 10:45 A.M.
VZO—e./( Atti
Robert Ooten Michael Scheafer
Secretary President