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 25-20 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 24-14".
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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). Proposed changes to the Investment Policy are as follows:
- Revise the maximum maturity periods for investments in prime quality commercial paper from 270 days to 397 days in Section 8.4 (Commercial Paper) per California Senate Bill 858.
- Add the Liquid Operating portfolio in Section 14.11 which states that no more than 20% of the portfolios may be invested in a combination of non-agency mortgage-backed securities, non-agency collateralized mortgage obligations and private label asset-backed securities.
With adoption of the Resolution, the Board of Directors would readopt OC San's Investment Policy Statement, portfolio performance benchmarks, and monitoring and reporting requirements for calendar year 2026.
RELEVANT STANDARDS
* Comply with OC San Policy: OC San Investment Policy
* Comply with Government Code Sections 53607 & 53646
PROBLEM
Government Code ?53607 allows for the Board of Directors to delegate authority to invest and/or reinvest OC San's funds to the Treasurer for a one-year period. Government Code ?53646...
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