Title
Consider recommendation from the Finance/Administrative Committee to amend Article IX of the Bylaws of the Edwards Aquifer Authority pertaining to the EAA Investment Policy and Investment Strategy.
Body
RECOMMENDED MOTION:
Move the board adopt Resolution and Order No. 10-17-884 of the Edwards Aquifer Authority Board of Directors amending Article IX of the EAA Bylaws pertaining to the EAA Investment Policy and Investment Strategy.
SUMMARY:
The purpose of this agenda item is for the board to consider a Finance/Administrative Committee recommendation to amend Article IX of the EAA Bylaws - the EAA Investment Policy and Investment Strategy. Attached to this summary is Article IX, reflecting staff’s proposed edits as well as a resolution and order adopting the amendment, both of which have been reviewed by legal counsel. The recommended edit is for Section 9.01 refining the definition of a business organization as defined by the Texas Local Government Code to include a local government investment pool and a discretionary investment management firm. This section also includes an amendment to clarify investment transactions made through accounts or other contractual arrangement are also subject to reasonable procedures and controls to preclude unauthorized transactions. Section 9.05 specifically identifies Federal Home Loan Banks and letters of credit as obligations. All of these recommended edits are the result of amendments to the Texas Public Funds Investment Act made during the 2017 Texas Legislative session.
At the September 26 meeting, the Finance/Administrative Committee voted to recommend the board adopt a resolution and order of the Edwards Aquifer Authority Board of Directors amending Article IX of the EAA Bylaws pertaining to the EAA Investment Policy and Investment Strategy. On September 28, 2017, the proposed amendments were distributed to the board as required by Section 14.02 of the Bylaws.
STRATEGIC PLAN REFERENCE:
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