Title
Consider recommendation from the Finance/Administrative Committee to approve amendments to Article X of the ByLaws of the Edwards Aquifer Authority pertaining to the EAA Investment Policy and Investment Strategy and designating investment officers.
Body
RECOMMENDED MOTION:
Move the board adopt Resolution and Order No. 11-24-110 of the Edwards Aquifer Authority Board of Directors approving amendments to Article X of the EAA Bylaws pertaining to the EAA Investment Policy and Investment Strategy and recommend the board reflect in the minutes that the named persons occupying the positions of Executive Director - Administration and Financial Services and Controller are the Investment Officers under Article X of the Bylaws.
SUMMARY:
The purpose of this agenda item is for the board to consider a Finance/Administrative Committee recommendation to approve amendments to Article X of the EAA Bylaws pertaining to the EAA Investment Policy and Investment Strategy, and to designate the EAA's Investment Officers.
Article X - Investment Policy and Investment Strategy Statement
The Texas Public Funds Investment Act requires that the EAA “…review its investment policy and investment strategies not less than annually. The governing body shall adopt a written instrument by rule, order, ordinance, or resolution stating that it has reviewed the investment policy and investment strategies…” The proposed edits to Article X, recommended by the EAA’s investment advisor (Valley View Consulting), generally include clarifying language in various sections, as well as, the following specific section edits:
• Section 10.05 Authorized Investments: modified and added clarifying language for fully collateralized repurchase agreements.
• Section 10.08 Investment Advisors: added clarifying language that prohibits an investment management firm from investing Authority funds in repurchase agreements using a joint account.
• Section 10.10 Safekeeping & Custodial Agreements: added clarifying language for collateral requirements to include additional Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA) banking language to ensure all bullet points perfecting collateral were included.
Investment Officers
Investment officers for the EAA, as designated in Article X, Section 10.04 of the EAA ByLaws, are as follows:
Executive Director - Administration and Financial Services: Felix Marquez
Controller: Shelly Hendrix
The proposed amendments to the ByLaws and a draft resolution and order, which have been reviewed by legal counsel, are attached.
At the meeting on October 22, the Finance/Administrative Committee voted to recommend the board adopt a resolution and order of the Edwards Aquifer Authority Board of Directors approving amendments to Article X of the EAA Bylaws pertaining to the EAA Investment Policy and Investment Strategy and recommend the board reflect in the minutes that the named persons occupying the positions of Executive Director - Administration and Financial Services and Controller are the Investment Officers under Article X of the Bylaws.
STRATEGIC PLAN REFERENCE:
This agenda item is required by Texas Government Code, Public Funds Investment, Section 2256.005(e).
FISCAL IMPACT:
None.