California Debt and Investment Advisory Commission

Approved Minutes
CALIFORNIA DEBT AND INVESTMENT ADVISORY COMMISSION (CDIAC) MEETING
Thursday, June 6, 2002
2:00 P.M.

State Treasurer's Office Building
915 Capitol Mall, Room 587
Sacramento, CA 95814

1) ROLL CALL

Deputy Treasurer, Barbara Lloyd, called the meeting to order at approximately 2:10 p.m. The members present were Annette Porini for Governor Gray Davis, Bethany Westfall for State Senator Mike Machado, Donna Linton, Cindi Aronberg for State Controller Kathleen Connell, Moira Topp for State Senator Charles Poochigian, and Barbara Lloyd for State Treasurer Philip Angelides. A quorum was present. Assembly member Joseph Simitian arrived at 2:30 p.m. and Susan Leal arrived at 2:35 p.m.

2) ACTION ITEMS

These items were deferred temporarily to allow for the arrival of additional Board Members anticipated shortly.

3) BUSINESS ITEMS

Item 3.a. Executive Director's Report:
Executive Director Lisa M. Harris provided the Commission with highlights of the activities that CDIAC has undertaken since the last Commission meeting in March. She also offered information on upcoming activities, including a swaps seminar, community tools conferences, and projects such as the investment guidelines for elected officials, the resource booklet for community tools, and the annual report on debt issuance.

Item 3.b. CDIAC Workplan:
The Commission was presented with CDIAC's workplan which highlights key and ongoing initiatives including protecting taxpayer dollars and conducting activities targeted towards elected officials. Additionally, it was noted that CDIAC will be increasing its attention on school financing especially in light of the large amount of debt that has been authorized under provisions of Proposition 39.

Item 3.c. Update to Commission Members on Action Items from Technical Advisory Committee Meeting of February 12, 2002 and List of TAC Membership:
This item was deferred to later in the Agenda to allow for the arrival of Commission members.

Item 3.d. Update on Tools to Revitalize California Communities Workshops:
Maureen Dumas briefed the Commission on the new series of CDIAC seminars focusing on economic development tools for local communities. A brief description of the programs that have been held since March and the programs to come in July and September 2002 also was provided. The Commission received a listing of all the associations with which CDIAC has been meeting to promote CDIAC activities. The Commission members expressed an interest in ensuring that all parts of the state, including small and rural counties, are included in CDIAC's networking activities. A suggestion was made to prepare CDIAC information packets to send to members of the Legislature for their constituency services.

Item 3.e. 2002 Technical Assistance Seminar Schedule:
CDIAC debt and investment programs scheduled for the fall were presented to Commission members.

Joseph Simitian and Susan Leal arrived after this business item was presented.

Items 3.f. Presentation on Current Outreach Efforts:
Robert Ingenito discussed a recent presentation he made at the request of the City of Claremont to its governing board on investments made by comparable cities identified using AB 943 data.

2) ACTION ITEMS (The meeting returned to the Action Items after the remaining Commission members arrived)

2.a. Approval of Minutes:
Annette Porini moved that the minutes of the March 19, 2002 meeting be approved. The motion was seconded by Donna Linton and passed (6-0). Representatives for Senators Poochigian and Machado abstained from voting, pursuant to CDIAC statutes.

2.b. Resolution 02-01: Executive Director Contract Delegation Authority for FY 02/03
Resolution 02-01 was presented to the Commission for approval of contract delegation to the CDIAC Executive Director for the 2002-03 fiscal year. Donna Linton moved to approve the resolution, Annette Porini seconded this motion, and the resolution was approved unanimously (6-0). Representatives for Senators Poochigian and Machado abstained from voting, pursuant to CDIAC statutes. It was noted that Commission members would like a courtesy letter informing them of any contracts in the amount of $50,000 or above that are entered into on dates that fall between Commission meetings.

2.c. Resolution 02-02: Deferral of Reporting Fee Increase
Resolution 02-02 was presented to the Commission for approval of deferring an increase in CDIAC's reporting fee from July 1, 2002 to July 1, 2003. Cindi Aronberg moved to approve the resolution. Donna Linton seconded this motion, and the resolution was approved unanimously (6-0). Representatives for Senators Poochigian and Machado abstained from voting, pursuant to CDIAC statutes.

3) BUSINESS ITEMS - CONTINUED (The meeting then returned to the remaining business items for discussion)

Item 3.c. Update to Commission Members on Action Items from Technical Advisory Committee Meeting of February 12, 2002 and List of TAC Membership:
Based upon the Commissioners' request for an update on action items from the Technical Advisory Commission meeting on February 12, 2002, the Commission received an update on these action items. Specifically, the Commission discussed the current National Association of Bond Lawyers' proposal for shifting tax liability from the bondholder to the issuer and CDIAC's survey that will be sent to issuers to gather input for consideration of a possible CDIAC position on the proposal. The survey results will be shared with the Commission at the next Board meeting.

Item 3.g. Presentation on Hiring of Consultant to Analyze CDIAC Database:
This item was deferred to the next CDIAC meeting at the suggestion of the Executive Director.

Item 3.h. Outstanding Debt Project Update:
The Commission received an update on CDIAC's current efforts to complete the Outstanding Debt Report. Based upon the data that has been received to date, CDIAC is recommending completing the report regarding General Obligation debt only and then working over the next several months to research the source for obtaining more reliable outstanding debt data from a private organization such as J.J. Kenny. A project timeline on the efforts to date was included in the Commission packet.

Item 3.i. CDIAC Reports Completed March through June 2002:
Information on the Callable Securities Issue Brief and the 2002 Primary Elections Report was shared with the Commission.

4) PUBLIC COMMENT

There was no public comment.

5) ADJOURNMENT

There being no further business, the meeting was adjourned at 3:05 pm.