Minutes - Investment - 2008-11-20_:
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COSTA MESA SANITARY DISTRICT
MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING
November 20, 2008
CALL TO ORDER The meeting was called to order at 5:00 p.m. by Treasurer /Finance Director
Marc Davis
ROLL CALL Committee Members Present:
Director Arlene Schafer (rotating committee member)
Director Gary Monahan (rotating committee member)
Mr. Rob Hamers, Manager /District Engineer
Staff Members Present:
Mr. Marc Davis, Treasurer /Finance Director
Mr. Thomas Fauth, Assistant Manager
Ms. Sherry Kallab, Management Analyst
Ms. Teresa Gonzalez, Accountant
NEW BUSINESS Review of Treasurer's Report
Mr. Davis reported that the District's portfolio was earning approximately
3.4% as of October 31, 2008, compared to LAIF earning approximately 2.7 %.
Mr. Davis made a reference to the Yield Curve Data of the October 31, 2008
Treasurer's report and reported that the District's yield is on top of all
benchmarks. The yield is the reflection of the District being in the market and
available to invest at the right time. Two of the securities in the portfolio with
an aggregate value of $2 million have call features in December and Mr.
Davis anticipates both securities will be called, because these securities are
at an interest rate of approximately 4 %. If the securities are called, the
District will be reinvesting at the current market rates, which will be lower
than the current rate of the securities held. Mr. Davis stated that we are in
the hold mode pending receipt of the tax assessments from the County. The
first tax apportionment in the amount of approximately $1 million was
received from the County today, November 20, 2008.
CaITRUST Investment Pool
Tonight, at the Regular Board meeting, a Resolution authorizing the
Treasurer to place idle funds in the Investment Trust of California
(CaITRUST) will be presented to the Board for consideration. Mr. Davis
reported that CaITRUST is an alternative to LAIF. CaITRUST offers three
fund options: Short-Term, Medium -Term and Long -Term Funds. Presently
the Long -Term Fund is unavailable. The Short -Term Fund allows for an
unlimited number of deposits and withdrawals and immediate access to the
funds, while the Medium -Term Fund limits transactions to once a month. Mr.
MINUTES OF INVESTMENT OVERSIGHT COMMITTEE MEETING
November 20, 2008
Page 2
Davis' intentions are to invest in the Medium -Term Fund for the purpose of
• obtaining a higher yield, yet maintain some liquidity. Agencies can join
CaITRUST as a participant or as a member. The difference between a
participant and a member is that a participant does not have the ability to
vote on items. Mr. Davis stated that the resolution to be adopted
recommends that at the present time we join as a participant. He believes
that with the expected small investment in CaITRUST, it would not warrant us
to take responsibility for equity and liability that a member would take on. In
the future, we would have the ability to change to a member.
Mr. Hamers asked how long CaITRUST had been around and also inquired
about the investment's team experience. Mr. Davis responded that
CaITRUST has been around since 2005. It is currently managed by
Wachovia Portfolio Services, which was recently bought by Wells Fargo
Bank. Wachovia Portfolio Services was set up for purposes of providing
services to public agencies; therefore, the investment team is very familiar
with the securities allowable by the government code.
PUBLIC COMMENTS There were no items discussed under public comments.
ADJOURNMENT The meeting adjourned at 5:12 p.m.
Approved by:
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Secretary, Costa e a m a ary District
Board of -Directors
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resident, Costa-Mesa Wnitary District
Board of Dire tors