TO: Board of Supervisors
FROM: Robert Minahen - Treasurer-Tax Collector
REPORT BY: Robert Minahen - Treasurer-Tax Collector
SUBJECT: Delegation of Investment Authority to Treasurer-Tax Collector, Approval of the Napa County Statement of Investment Policy, and Appointment of Patricia Clarey to the Treasury Oversight Committee.
RECOMMENDATION
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Adopt a Resolution to renew delegation of investment/reinvestment authority to the Treasurer-Tax Collector for an additional one-year period beginning April 1, 2025; approve the Napa County Investment Policy; and appoint Patricia Clarey as the Special Districts’ representative to the Treasury Oversight Committee. (No Fiscal Impact; Discretionary)
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BACKGROUND
The California Legislature has enacted a detailed statutory process for the deposit and investment of local agency surplus funds. Since the County is a local agency, the County’s Board of Supervisors is empowered to make investment decisions on the County’s behalf. However, the Board of Supervisors may delegate its investment authority to the county treasurer pursuant to California Government Code sections 53607 and 27000.1. If the delegation of investment/reinvestment authority occurs, the Treasurer-Tax Collector takes full responsibility for investments and reinvestments of local agency surplus funds until the Board of Supervisors either revokes its overall delegation of authority by ordinance, or decides not to renew the annual delegation.
Since the adoption of the ordinance in 1996, the Board of Supervisors’ delegation of authority to the Treasurer-Tax Collector to invest/reinvest has been renewed every year. The current annual delegation period is scheduled to expire at the end of March. Therefore, the Treasurer-Tax Collector is requesting the Board of Supervisors adopt a resolution delegating its authority to invest/reinvest local agency surplus funds held in the Napa County Treasury to the Treasurer-Tax Collector for one year ending March 31, 2026.
The Napa County Investment Policy is presented annually to the Napa County Treasury Oversight Committee (TOC) for review and monitoring in accordance with California Government Code sections 27133 and 53646(a)(1). The proposed Investment Policy has been amended to include subsection 7(L) which adds certain Joint Power Authorities, organized pursuant to Government Code section 6509.7, to the list of permitted investments. Investments in such joint power authorities is allowed under Government Code section 56301(p). This addition to the permitted investments list will provide an additional highly liquid investment option which can be used to invest bond proceeds when an estimated project expenditure plan has not been developed and will also providing a diversification option moving forward.
The Napa County Treasurer-Tax Collector recommends approval of the attached Statement of Investment Policy dated March 11, 2025.
In accordance with Resolution Number 2014-121 which re-authorized the Napa County TOC, the Special District representative to the TOC shall be selected by a majority of the presiding officers of the legislative bodies of those special districts in Napa County who are required or are authorized to and have deposited funds in the Napa County Treasury, and shall be appointed for a four-year term commencing on April 1 and ending on March 31. The Napa County Regional Parks and Open Space District nominated Patricia Clarey, who is serving on their board representing Ward 3. A majority of the presiding officers responding voted in favor of the nomination of Patricia Clarey to serve as the Special Districts’ representative. The Special District member became vacant when Supervisor Pedroza left office.
Patricia Clarey is a St. Helena resident with a wealth of experience in various leadership roles in both the public and private sectors. Patricia’s public sector experience includes service as Chief of Staff to Governor Arnold Schwarzenegger, Deputy Chief of Staff to Pete Wilson, and the National Park Service in Washington, DC. In the private sector Patricia held top executive positions at Transamerica Corporation and Health Net where she retired as President of their Medi-Cal business, the largest Medi-Cal provider in the State of California. Patricia currently serves as the Treasurer of the Napa Valley State Parks Association, Chair of the Finance Committee at the Napa Vine Trail Coalition and serves on the Finance Committee at the Napa Community Foundation.
Requested Actions:
1. Adopt a resolution to renew delegation of investment authority to the Treasurer-Tax Collector;
2. Approve Napa County Statement of Investment Policy;
3. Appoint Patricia Clarey as the Special Districts’ representative to the Treasury Oversight Committee
FISCAL & STRATEGIC PLAN IMPACT
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Is there a Fiscal Impact? |
No |
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Is it Mandatory or Discretionary? |
Discretionary |
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Discretionary Justification: |
The Treasurer-Tax Collector is currently responsible for cash flow forecasting and surplus funds investment decisions, following Prudent Investor guidelines while prioritizing safety and liquidity before yield. The Board does not have discretion to appoint an individual to represent the Special Districts on the TOC unless that individual has been voted for by the Special Districts and nominated by the Treasurer. |
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Consequences if not approved: |
If delegation of authority is not approved, the Board of Supervisors would absorb fiduciary responsibilities under Government Code section 53600.3 for all investment/ reinvestment of surplus funds decisions effective April 1, 2025. If the TOC nominee is not appointed, there may be challenges satisfying TOC quorum/voting requirements. |
ENVIRONMENTAL IMPACT
ENVIRONMENTAL DETERMINATION: The proposed action is not a project as defined by 14 California Code of Regulations 15378 (State CEQA Guidelines) and therefore CEQA is not applicable.