This facility is disabled accessible.  Auxiliary aids and services are available for individuals with speech, vision or hearing impairments (48-hour notice is required).  Please contact the ADA Coordinator at (818) 238-5021 voice or (818) 238-5035 TDD with questions or concerns.

                                                                      6:30 P.M.

INVOCATION:          

                                                The Courts have concluded that sectarian prayer as part of City

                                                Council meetings is not permitted under the Constitution.

FLAG SALUTE:

ROLL CALL:

JOINT MEETING WITH THE CITY COUNCIL, REDEVELOPMENT AGENCY, HOUSING AUTHORITY AND YOUTH ENDOWMENT SERVICES FUND BOARD:

1.         DECEMBER 2006 QUARTER END INVESTMENT REPORT AND 2007 INVESTMENT POLICY:

The 2007 Investment Policy for the Investment Pool comprised of the City, Redevelopment Agency, Parking Authority, Youth Endowment Services and separately for the Housing Authority is being presented for approval.

The recommended changes are:

1) Page 2 (II) Investment Philosophy to incorporate the new language that the State of California revised in California Government Code Section 53600.3;

2) Page 3 (III Objectives, Sec B, Liquidity) Increasing the liquidity needed monthly from $61 million to $69 million calculated as eight weeks of annual appropriations less purchased power.  Also increase the maximum allowed to invest between five years to ten year maturities from $10 million to five percent of the portfolio;

3) Page 6 (VI Authorized Investments, Sec F, Commercial Paper) Decrease from 10 percent to two percent of the pool may be invested in commercial paper issued by any one corporation;

4) Page 6 (VI Authorized Investments, Sec H, Medium-Term Notes) Change from the rating to be by a nationally-recognized rating service to rated by two of the three major nationally-recognized rating services.  Decrease from 10 percent to five percent the amount of the pool that may be invested in notes issued by one corporation;

5) Page 8 (IX Qualified Dealers and Institutions) Added �and qualified regional dealers� to the language for clarification;

6) Page 15 (Exhibit A) List of Qualified Brokers�.Change Jason Hamblen to Countrywide Securities, and add Joe Alan Sexton, First Tennessee, and Don Collins, Brookstreet Securities; and,

7) Page 16 (Exhibit B) Commercial Paper changed to 25 percent Legal Limit and the first and last lines under other constraints.  These changes are governed by the State of California Statutes applicable to Municipal investments.

Recommendation:

Staff recommends the Council approve the December 2006 Quarter End Investment Report and 2007 Investment Policy.

RECESS to continue the Youth Endowment Services Fund Board and the City Council meetings.

ADJOURNMENT.