ITEM: CONSENT CALENDAR

8. ANNUAL UPDATE ON INVESTMENT POLICY

Meeting Date: January 30, 2003 Budgeted: N/A

Program/Line Item No.: N/A

Staff Contact: Rick Dickhaut Cost Estimate: N/A

General Counsel Approval: N/A

Committee Recommendation: The Administrative Committee reviewed this item at its January 21, 2003 meeting and concurred with the staff recommendation.

CEQA Compliance: N/A

SUMMARY: The State of California Government Code requires the District Board to annually consider the District Investment Policy. The current policy was adopted by the Board on September 20, 1997 and provides guidance for the District Treasurer, who acts on behalf of the Board in all investment matters. Exhibit 8-A is a copy of the investment policy that was last reviewed by the Board on December 17, 2001. There have been no changes to the policy since that date.

RECOMMENDATION: District staff recommends that the Board review and approve the investment policy. The Administrative Committee considered this matter on January 21, 2003 and voted 3 to 0 to recommend that the Board approve the current investment policy. This item will be approved if adopted along with the Consent Calendar.

BACKGROUND: The State of California Government Code requires the District Board to annually review and approve the District Investment Policy. The District=s current policy was adopted on September 20, 1997 and has been reviewed annually by the Board since that time. Additionally, State law, as well as District policy, requires that each quarter the Board receive and approve a report of investments held by the District. This requirement has been met as the Board has received quarterly reports on the contents and performance of the investment portfolio since adoption of the investment policy.

U:\staff\word\boardpacket\2003\2003boardpacket\20030130\ConsentCalendar\8\item8.doc