Vacaville Lagoon Valley GAD appoints GAD Treasurer, Inc. to manage district funds

The Lagoon Valley Geologic Hazard Abatement District (GAD) board voted June 10 in Vacaville to appoint GAD Treasurer, Inc. as the district treasurer and to approve a contract for treasurer services.

The resolution, introduced during the GAD meeting at Vacaville City Council Chambers, was approved by motion from Council Member Roy Stockton and carried on a voice vote with all board members present voting "aye." The consent calendar—containing meeting minutes from Oct. 22, 2024—was also approved earlier in the meeting.

The appointment responds to a statutory requirement that a treasurer be named for a GAD, and it comes as revenues for Lagoon Valley begin to accrue. Haley Ralston, a geologist with NGO who serves as manager for the Lagoon Valley GAD, told the board that GADs are established "for the purpose of protecting communities from geologic hazards" and that a treasurer is required to manage routine budgets, emergency responses and long-term reserves. Ralston added that staff recommended GAD Treasurer, Inc. and that the contract outlining services and scope was included in the staff report.

Dave Fernandez, representing GAD Treasurer, Inc., described the firm's background and safeguards. He said the company has $20,000,000 under management for GAD funds and that the treasurer business originated from a longer tenure in the same field after a corporate reorganization. Fernandez said the firm maintains a formal investment policy and annual review with the GAD manager and that the primary objective is "the preservation of the capital" for the district and contributors.

Fernandez outlined how the firm segments assets for safety and liquidity: one year of budgeted operating expenses is held in treasury-like or cash instruments, a secondary short-term reserve is maintained, and any additional reserves are invested conservatively to grow over time. He stated the overall equity allocation would be capped at "no more than 40% overall equities" with the remainder in fixed-income securities, and that the firm uses conservative, exchange-traded U.S. and non-U.S. equities as part of that mix.

Board members asked about protections against market risk and whether Lagoon Valley funds would be co-mingled with other accounts. Ralston and Fernandez told the board the funds collected from Lagoon Valley residents would remain in an account dedicated to the Lagoon Valley GAD and would be used only for that district's operations as described in the GAD's previously approved plan of control and engineer's report. Fernandez said that, to date in other GADs he serves, budgets have allowed for minor emergency responses and larger repairs have been planned for and funded in subsequent fiscal years when needed.

There were no public speakers on the item. After discussion, Council Member Roy Stockton moved to approve the appointment and contract; a second was not recorded on the transcript. The board voted unanimously in favor.

The board adjourned; the next regularly scheduled City Council meeting was set to begin at 6:00 p.m.