HomeMy WebLinkAbout02-12-2015 IOC MinutesCITY OF SAN LUIS OBISPO
INVESTMENT OVERSIGHT COMMITTEE
MINUTES
February 12, 2015
1:00 PM
Council Hearing Room 990 Palm Street
San Luis Obispo, California
MISSION: As set forth in the Investment Management Plan, this committee is responsible for reviewing
the City's portfolio on an ongoing basis to determine compliance with the City's investment policies and
for making recommendations to the City Treasurer (Director of Finance and Information Technology)
regarding investment management practices.
CALL TO ORDER
A meeting of the Investment Oversight Committee was called to order on Thursday, February 12, 2015, at
1:30 p.m. in the Council Hearing Room at 990 Palm Street, San Luis Obispo, California, by Chairperson
Padilla.
ROLL CALL
Committee Members
Present: Committee Members Steve Barasch, Michael Codron, Katie Lichtig, Jan Marx,
Vilma Warner, and Chairperson Wayne Padilla
Committee Members
Absent: None
Others Present: Al Eschenbach, Independent Auditor and ex- officio member, Carlos Oblites, Public
Financial Management (City's Investment Advisor); Anthony Mejia, City Clerk
PUBLIC COMMENT
None,
I. REVIEW OF INVESTMENT OVERSIGHT COMMITTEE MEETING MINUTES OF
NOVEMBER 13 2014
MOTION BY COMMITTEE MEMBER CODRON, SECOND BY COMMITTEE MEMBER
MARX, CARRIED 6 -0, to approve the Investment Oversight Committee Meeting minutes of
November 13, 2014.
Investment Oversight Committee Minutes — February 12, 2015 Page 2
2. PRESENTATION OF THE QUARTERLY INVESTMENT REPO_ RT ON PORTFOLIO
PERFORMANCE
City Treasurer Padilla distributed the Quarterly Investment Report and City Investment Advisor
Oblites reviewed the contents of the report and summarized the portfolio's performance and
responded to inquiries from the floor and Committee.
Following discussion, MOTION BY COMMITTEE MEMBER MARX, SECOND BY
COMMITTEE MEMBER LICHTIG, CARRIED 5 -1 (COMMITTEE MEMBER BARASCH
VOTING NO), to confirm the Quarterly Investment Report, for the period ending December 31,
2014, is in compliance with the City's Investment Policy.
3. DISCUSSION OF THE CONTENT OF THE QUARTERLY INVESTMENT REPORT
AND IDENTIFY RECOMMENDED CHANGES TO FORMAT AND /OR CONTENT
During the course of discussion, the Committee requested: 1) that the Quarterly Investment
Report's Economic Focus section include relevant California economic indices, 2) that the
report's Account Profile section incorporate an articulation of the City's investment policies and
an explanation related to compliance with such policies; 3) that the Investment Performance chart
be clearly labeled as total rate of return "since inception annualized"; and 4) that a table of
contents be added to the report..
4. DISCUSSION REGARDING THE CONTINUED USE OF THE EXISTING INVESTMENT
STRATEGY AS WELL AS ALTERNATIVE PERFORMANCE BENCHMARKS
City Investment Advisor Oblites explained that an analysis of the City's current investment
strategy and potential alternative performance benchmarks will presented to the Committee at its
next meeting.
5. DISCUSSION OF PUBLIC FINANCIAL MANAGEMENT'S REVIEW OF THE CITY'S
INVESTMENT POLICY
City Investment Advisor Oblites reviewed his recommendations for possible amendments to the
City's Investment Management Plan, noting that a draft plan will be presented to the Committee
at its next meeting; reviewed major criteria considerations for determining whether to deposit
funds in local financial institutions; responded to inquiries from the floor and Committee.
During the course of discussion, it was requested that staff analyze the possibility allowing the
deposit of funds with credit unions as well as financial institutions.
6. ITEMS TO BE ADDRESSED AT A FUTURE MEETING
City Treasurer Padilla noted that the following items will be presented at a future meeting:
• Draft revisions to the City's Investment Policy.
• Assessment of the liquidity needs versus investing additional cast into the portfolio.
• Consideration of a Socially Responsible Investment Policy.
Investment Oversight Committee Minutes — February 12, 2015 Page 3
ADJOURNMENT
MOTION BY COMMITTEE MEMBER LICHTIG, SECOND BY COMMITTEE MEMBER
WARNER, CARRIED 6 -0, to adjourn at 3:05 p.m. A
Approved: 05/14/15