California Debt and Investment Advisory Commission

APPROVED MINUTES
CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION MEETING
December 5, 2006
2:00 P.M.

Jesse M. Unruh State Office Building
915 Capitol Mall, Room 587
Sacramento, CA 95814

  1. ROLL CALL

    Deputy Treasurer Laurie Weir for Treasurer Phil Angelides called the meeting to order at approximately 2:03 p.m. Members present included: Laurie Weir for Treasurer Phil Angelides, Vincent P. Brown for Governor Arnold Schwarzenegger, Windie Scott for State Controller Steve Westly, Senator Dave Cox, Colin Grinnell for Senator Mike Machado, José Cisneros and Donna Linton. A quorum was present.
  2. APPROVAL OF THE MINUTES (from June 27, 2006 meeting)

    A motion was made by José Cisneros to approve the minutes of the June 27, 2006. Vincent P. Brown seconded the motion and the minutes were approved (6-0).
  3. EXECUTIVE DIRECTOR'S REPORT

    Ms. Jane Thompson presented a summary of CDIAC's data collection activities, seminars, and publications since the June 27, 2006 Commission Meeting.

    Ms. Thompson updated the Commission on the collection of debt issuance data using forms in an electronic format. CDIAC submitted language to be amended into Senate Bill 1196 (Local Government Omnibus Act of 2006) authorizing collection of information in an electronic format. Senate Bill 1196 was chaptered on September 29, 2006 and takes effect on January 1, 2007. Ms. Thompson informed the Commission that CDIAC staff has begun implementing the electronic version of its current debt issuance forms, backed up by paper versions virtuald with the same information.

    Ms. Thompson informed the Commission that electronic offsite archival storage is being investigated for easy back up of documents in case of STO loss of server storage due to an emergency. Added benefits would be decreased storage of paper documents as wells as easy electronic access for research purposes.

    Ms. Thompson also reported on the seminars and workshops held since June. Debt issuance-related programs included "Revealing OPEBs in Your Financials" as a pre-conference for The Bond Buyer's 16th Annual California Public Finance Conference in San Francisco and CDIAC's "The Fundamentals of Debt Financing Conference" in San Diego. Public investment-related programs were the "Cash-Flow Forecasting Workshop" in San Mateo and the "Advanced Concepts and Practices for Investment Public Funds" seminar in Long Beach.

    Ms. Thompson shared that CDIAC completed three publications since June 2006. These publications were Investment Policy Reporting Practices: An Informational Guide, OPEBs and GASB 45: A Question and Answer Guide, and Understanding Interest Rate Swap Math and Pricing. The CDIAC research staff has also developed an electronic interface that allows external users to interact with CDIAC's debt issuance database through provided fields.

    Ms. Thompson reported that CDIAC's role continues as an important information resource for state and local government officials on municipal debt issuance and investment portfolio reports/practices. The information CDIAC collects is given out over the phone and through seminar and research programs.
  4. ACTION ITEMS

    Item 4.a. Approval of RESOLUTION 06-02: UPDATED EXECUTIVE DIRECTOR OR ACTING EXECUTIVE DIRECTOR AUTHORITY TO ENTER INTO CONTRACTS ON BEHALF OF THE COMMISSION


    Ms. Thompson presented Resolution 06-02 to the Commission for approval. This resolution was in response to a request by STO Administrative Division staff for CDIAC to update its contract delegation authority, bringing it in alignment with the State Administrative Manual (SAM).

    Senator Cox wanted specifics on the cost versus income for each contracted seminar or conference. Senator Cox asked to see the specifics as soon after the event as possible. Mr. Frank Moore indicated that he would provide invoices of specific amounts. It was determined that all members want this information.

    A motion was made by Senator Cox to approve Resolution 06-02. Ms. Donna Linton seconded the motion and the resolution was approved (6-0).
  5. INFORMATIONAL ITEMS

    Item 5.a. Summary of Recent Contracting Activities


    Mr. Moore updated the Commission on contracts and interagency agreements entered into on behalf of the Commission since the June 27, 2006 Commission Meeting. Mr. Moore shared information about five on-going contracts and three one-time contracts. Two of the on-going contracts with the State Treasurer's Office were the Interagency Agreement for fiscal year 2006-07 providing administrative support services for CDIAC and Interagency Agreement for fiscal year 2006-07 paying for rental of office space and security. The final three on-going contracts were with TravelStore Inc., Language Line and U.S. Bank, each with "$0.00" as the dollar amount stated. TravelStore was for travel agency contract services at a flat $15.00 per use fee. Language Line was for interpretive services at an hourly rate and U.S. Bank was for Cal Card purchasing cards with no fee charged for it.

    The three one-time contracts were with Sodexho, Hilton San Diego Mission Valley and Renaissance Long Beach Hotel. Each of the three contracts dealt with seminar costs. Sodexho's contract was $1,398.59 for catering. Contracts providing meeting space, catering and audio-visual services were entered into with The Hilton San Diego Mission Valley contract not to exceed $20,000.00 and the Renaissance Long Beach Hotel contract not to exceed $10,000.00.

    Item 5.b. Seminar Activities for 2007

    Ms. Linda Louie outlined the seminar and workshop schedule for 2007. Upcoming seminars and workshops will include CDIAC and the California Association of School Business Officials: ABCs of School Debt Financing, Fundamentals of Land-secured Financing, CDIAC sessions at the CSMFO Annual Conference, Mechanics of a Bond Sale, Living with an Issue: On-going Bond Administration Seminar, Investing Public Funds: Fundamentals of Managing Your Portfolio, CDIAC Pre-conference at The Bond Buyer's 17th Annual California Public Finance Conference and Fundamentals of Debt Financing. Seminars and workshops usually have between 70 and 140 attendees.

    Item 5.c. Update on Research Reports/Publications

    Ms. Kristin Szakaly-Moore shared with the Commission CDIAC's current status on various research projects. Three of the projects being printed are Investment Policy Reporting Practices: An Informational Guide, Understanding Interest Rate Swap Math and Pricing, OPEBs and GASB 45: Question and Answer Guide.

    Three projects under review are 2005 Annual Report, Understanding Duration and Qualified Zone Academy Bonds (QZABs). The 2005 Annual Report provides information on debt issuance activity and CDIAC activities for the 2005 year. The issue brief, Understanding Duration, is a helpful overview of the use and benefits of duration. The Qualified Zone Academy Bonds (QZABs) issue brief gives potential issuers an overview of the QZAB program.
  6. PUBLIC COMMENT

    Ms. Weir complimented the Executive Director and CDIAC staff on a great year. Ms. Weir stated that it had been a busy time, and that staff have done a great job, accomplishing a number of noteworthy items.
  7. ADJOURNMENT
    There being no further business, the meeting was adjourned by acclamation at 2:33 pm.