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14. Consideration to Establish an Account with a Certificate of Deposit(CD) Placement Service to Diversify the Town's Investment Portfolio • Finance Director Nick Pegueros introduced the agenda item to Council. Pegueros explained that the item before Council to diversify the Town's investment portfolio had originated with the Finance and Investment Committee (FIC). With the continued uncertainty in the financial markets, the security of the Town's liquid assets is a high priority. Upon their quarterly review of the Town's Investments, the FIC had recommended that the Town minimize its holdings in non FDIC-insured deposits. Pegueros reviewed the Town's cash and investment assets as of April 30, 2009 which totaled $14,599 million. He shared a chart that identified the percentage amount of the Town's funds in the different investment vehicles and the average yields of the investments. The asset distribution included: Federal Agencies 24%, CAMP 9% (money market), LAIF 8% (money market), B of A 4%, US Treasuries 55%. Pegueros explained that funds currently held in the Bank of America's checking account were fully covered by the FDIC and not subject to the $250,000 cap on interest bearing accounts. Staff had solicited proposals from local banks and Comerica Wealth & Institutional Management had a Certificate of Deposit (CD) Program that would place the Town's funds in FDIC.insured CDs. Pegueros reviewed the benefits of the program. They included: all funds were FDIC insured deposits, provided a diversification of investments, funds laddered to provide liquidity, and consolidated monthly statements that provide transparency. He recommended that the initial investment be one million dollars transferred from the LAIF money market account into CDs with no greater than 6 • month terms. Pegueros noted that there was an expectation of low yields in comparison to some of our current yields. Mayor Mordo offered that it was prudent for the Town to take action on the recommendation. MOTION SECONDED AND CARRIED: Moved by Warshawsky, seconded by Larsen and passed unanimously by the following roll call vote to approve Resolution No. 28-09 authorizing the City Manager to execute a contract with Comerica Securities, Inc. for the exclusive purpose of participating in the Certificate of Deposit Placement Program: AYES: Mayor Mordo, Mayor Pro Tem Warshawsky, Councilmember Kerr, Councilmember Larsen and Councilmember Summit NOES: None ABSENT: None ABSTAIN: None PLANNING COMMISSION REPORT Planning Director Debbie Pedro reported on the Planning Commission's actions at their May 7, 2009 meeting. The Commission had reviewed three requests for Site Development Permits. Two applications were for new residences and the third application was a landscape screening plan for the AT&T wireless facilities installation at • Duval Way. All three projects had been unanimously approved. Specific information including the conditions of approval and project staff reports would be forwarded to the 8 City Council Regular Meeting Minutes May 14,2009