06-20-2008 VC SP-M• MINUTES OF THE SPECIAL SESSION
VILLAGE COUNCIL OF NORTH PALM BEACH, FLORIDA
JUNE 20, 2008
Present: William Manuel, Mayor
David B. Norris, Vice Mayor
Darryl Aubrey, President Pro Tem
Dr. Edwazd M. Eissey, Councilman
T.R. Hernacki, P.E., Councilman
Jimmy Knight, Public Safety Duector
Melissa Teal, CMC, Village Clerk
ROLL CALL
Mayor Manuel called the meeting to order at 3:40 p.m. All members of Council were present,
except Councilman Hernacki, who arrived at 3:50 p.m. All members of staff were present,
except the Village Attorney. Finance Director Samia Janjua was present. The following
members of the Audit Committee were present: Chairman Tom Magill, Bob Gebbia, and
Christina Ivaldi.
PURPOSE OF THE SPECIAL SESSION
• The purpose of the Special Session was to discuss investment options with Mel Hamilton of
PFM Asset Management LLC, and to provide input and guidance to Village Administration
concerning Village investments.
Mr. Knight advised that activity in the State Business Administration (SBA) Local Government
Investment Pool (LGIP) is monitored daily by the Finance Director. Mr. Knight noted a number
of recent withdrawals by participants in the LGIP. Mr. Knight discussed the possibility of
litigation regarding certain investment policies of the SBA and the concern that any remaining
participants will be responsible for litigation costs.
Mr. Knight reviewed the history of the Village's use of the SBA fund, and actions taken since
November 2007 to ensure the safety and liquidity of Village funds. Mr. Knight detailed the
amount of Village funds currently on deposit in LGIP "A" and "B", Wachovia Bank, and
Evergreen Investment Fund. Mr. Knight noted that all Village funds in LGIP "A" are available
for withdrawal without fees.
Mr. Knight introduced Mel Hamilton of PFM Asset Management LLC. Mr. Hamilton
distributed an informational packet to the Council, including information about the SBA and
background on PFM. Mr. Hamilton advised that PFM focuses exclusively on governmental and
not-for-profit assets. Mr. Hamilton detailed the types of services PFM provides to municipalities.
• Mr. Hamilton stated that PFM used SBA as a cash pool for its clients until September 2007, and
noted that its lazgest client, Palm Beach County School District, liquidated all holdings in SBA
by mid-October 2007. Mr. Hamilton briefly reviewed the composition of SBA investments.
Minutes of Village Council Special Session held June 20, 2008 Page 2 of 2
• Mr. Hamilton wmpazed recent SBA percentage yields to other funds, and recommended the
Village invest in institutional money mazket funds. Mr. Hamilton advised that expenses on
institutional money mazket funds should be less than 20 basis points.
Discussion ensued on money market funds, treasury funds, and prime funds.
Mr. Knight expressed the desire of Village Administration to diversify Village investments further.
Discussion took place concerning moving Village funds from the SBA. It was noted that less than
two months ago, the SBA LGIP "A" was paying around 4%; however, it has since dropped to just
slightly more than other investments, such as money market accounts, aze paying. Mrs. Janjua
distnbuted a list ofthe top participants in the SBA LGIP and their current available liquid balances.
Discussion was held on the Village's investment policy. Mr. Knight suggested engaging the
Audit Committee to assist Administration in drafting an investment policy.
Mr. Knight will provide Council with a copy of the current investment policy, and a resolution
allowing for investment allocations other than only in the SBA (if necessary) by the Council
meeting on June 26, 2008.
By consensus, the Village Council tasked the Audit Committee with assisting Administration in
drafting a new investment policy. The consensus of the Village Council and members of the
• Audit Committee was that all Village funds in the SBA LGIP "A" be withdrawn.
ADJOURNMENT
With no further business to come before the Council, the meeting adjourned at 4:45 p.m.
Melissa Teal, CMC, Village Clerk
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