RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

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RESOLUTION IMPLEMENTING GOVERNMENT CODE SECTIONS 53620-53622 FOR THE PURPOSES OF INVESTING FUNDS FOR THE PAYMENT OF EMPLOYEE RETIREE HEALTH BENEFITS AND DELEGATING INVESTMENT AUTHORITY TO THE COUNTY MANAGER

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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that:

WHEREAS, Government Code §53620 authorizes this Board to invest funds designated for the payment of employee retiree health benefits in any form or type of investment deemed prudent by the Board pursuant to Government Code §53622 and this Board desires to invest County funds for this purpose; and

WHEREAS, Government Code § 53621 provides that this Board’s authority to invest or to reinvest funds intended for the payment of employee retiree health benefits, or to sell or exchange securities purchased for that purpose, may be delegated by the Board to designated officers and this Board has determined to designate this authority to the County Manager and his designees.

NOW THEREFORE, IT IS HEREBY DETERMINED AND ORDERED THAT the County Manager and his designees are hereby authorized to invest funds in manner consistent with Government Code §53622, as set forth below:

(a) Funds intended for the payment of employee retiree health benefits shall only be held for the purpose of providing benefits to participants in the retiree health benefit plan and defraying reasonable expenses of administering that plan.

(b) When making investments of the funds, the County Manager and his designee shall discharge its duties with respect to the investment of the funds.

(1) Solely in the interest of, and for the exclusive purposes of providing benefits to, participants in the retiree health benefit plan, minimizing employer contributions thereto, and defraying reasonable expenses of administering the plan.

(2) With the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with these matters would use in the conduct of an enterprise of a like character and with like aims.

(3) Shall diversify the investments of the funds so as to minimize the risk of loss and to maximize the rate of return, unless under the circumstances it is clearly prudent not to do so.

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