FROM: Robert Thompson, General Manager
Originator: Wally Ritchie, Director of Finance
SUBJECT:
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INVEST AND/OR REINVEST ORANGE COUNTY SANITATION DISTRICT'S FUNDS AND ADOPT INVESTMENT POLICY STATEMENT
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GENERAL MANAGER'S RECOMMENDATION
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RECOMMENDATION:
Adopt Resolution No. OC SAN 23-23 entitled: "A Resolution of the Board of Directors of the Orange County Sanitation District Authorizing the Orange County Sanitation District's Treasurer to Invest and/or Reinvest the Orange County Sanitation District's Funds, Adopting the Orange County Sanitation District's Investment Policy Statement and Performance Benchmarks, and Repealing Resolution No. OC SAN 22-36".
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BACKGROUND
This agenda item presents updates to the Orange County Sanitation District (OC San) Investment Policy Statement for consideration by the Administration Committee as it is the oversight committee for the Investment Policy (Section 19.2). The notable change to State law governing OC San's investments beginning in 2024 is SB 882 which clarifies that agency Mortgage Back Securities/Collateralized Mortgage Obligations/Pass-Through securities are not subject to Section 53601 (o). Language on OC San's Investment Policy Section 8.3 (Authorized and Suitable Investments) was added to reflect this change.
Other changes include:
- Limiting callable Agency exposure to 20% of the portfolio as a further risk mitigation in Section 14.2 (Diversification).
- Adding Local Government Investment Pools (LGIPs) to the list of securities not subject to the 5% max in Section 14.3 (Diversification).
- Adding language to denote quarterly reports must be delivered to the governing body within 45 days in Section 18.0 (Reporting).
- Adding Section 9.0 (Prohibited Investment Vehicles and Practices) to complement some of the restrictive policy language already imbedded in the policy.
With adoption of the Resolution, the Board of Directors would readopt OC San's Investment Policy Statement, p...
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