HomeMy WebLinkAboutMintues of August 13 and November 19, 2015CITY OF SAN LUIS OBISPO
INVESTMENT OVERSIGHT COMMITTEE
MINUTES
August 13, 2015
1:30 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, August 13, 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, John Ashbaugh, Vilma
Warner, and Chairperson Wayne Padilla
Committee Members
Absent: Committee Members Katie Lichtig and Jan Marx
Others Present: Al Eschenbach, Independent Auditor and ex-officio member, Carlos Oblites, Public
Financial Management (City’s Investment Advisor); Heather Goodwin, Deputy City
Clerk
PUBLIC COMMENT
None.
1. REVIEW OF INVESTMENT OVERSIGHT COMMITTEE MEETING MINUTES OF
MAY 14, 2015
MOTION BY COMMITTEE MEMBER CODRON, SECOND BY COMMITTEE MEMBER
WARNER, CARRIED 4-0, (COMMITTEE MEMBER ASHBAUGH ABSTAINING) to
approve the Investment Oversight Committee Meeting minutes of May 14, 2015.
Investment Oversight Committee Minutes – August 13, 2015 Page 2
2. PRESENTATION OF THE QUARTERLY INVESTMENT REPORT 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 ASHBAUGH, SECOND BY
COMMITTEE MEMBER WARNER, CARRIED 4-0, (COMMITTEE MEMBER BARASCH
ABSTAINING) to confirm the Quarterly Investment Report, for the period ending June 30, 2015,
is in compliance with the City’s Investment Policy.
3. DISCUSS THE FUTURE INVESTMENT STRATEGY IN LIGHT OF POSSIBLE
FEDERAL RESERVE BANK ACTIONS AFFECTING INTEREST RATES AND THE
RESULTS OF THE RECENT CASH FLOW AND LIQUIDITY ANALYSIS
City Treasurer Padilla distributed the Portfolio Review Report and City Investment Advisor
Oblites reviewed the contents of the report and responded to inquiries from the floor and
Committee.
Committee Member Barasch discussed and distributed hard copies of a document entitled “City
of San Luis Obispo’s Estimated ‘On-Demand’ accounts compared to other City budgets as of
June 30, 2015” and responded to inquiries from the floor and Committee.
Leslie Halls, San Luis Obispo, suggested that the City invest in Certificate of Deposits (CD) with
higher rates of return; opined that the City should consider paying off long term debt.
In response to public inquiry, City Treasure Padilla explained that the staff continues to analyze
the City’s liquidity and outstanding debt; stated that each debt is analyzed on its own merit.
Following discussion, the Committee received and filed the Portfolio Review Report.
4. DISCUSSION OF THE 2015-16 ANNUAL CASH LIQUIDITY REQUIREMENT EQUAL
TO 3 MONTHS OF OPERATING COSTS BASED ON THE MOST RECENTLY
ADOPTED ANNUAL BUDGET
City Treasurer Padilla explained the responsibility of the City Treasurer’s delegated investment
authority for making investment decisions under the City’s Investment Management Plan; stated
that the City Treasurer is required to report to the Committee within 60 days of the end of the
fiscal year regarding the City’s liquidity requirements; advised that the current liquidity
requirements are based on three months or 25% of the annual operating budget of the City with a
resulting value of $23,244,784.
Committee Member Ashbaugh left at 2:40 p.m.
Investment Oversight Committee Minutes – August 13, 2015 Page 3
5. ITEMS TO BE ADDRESSED AT A FUTURE MEETING
City Treasurer Padilla noted that the following item will be presented at a future meeting:
• Continued discussion regarding policy decisions made about the City’s core asset levels
including how to maximize return and determining what is the optimum amount of
invested cash.
ADJOURNMENT
MOTION BY COMMITTEE MEMBER CODRON, SECOND BY COMMITTEE MEMBER
BARASCH, CARRIED 4-0, to adjourn at 2:49 p.m.
Heather Goodwin
Deputy City Clerk
Approved: XX/XX/15
CITY OF SAN LUIS OBISPO
INVESTMENT OVERSIGHT COMMITTEE
MINUTES
November 19, 2015
1:30 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, November 19, 2015,
at 1:30 p.m. in the Council Hearing Room at 990 Palm Street, San Luis Obispo, California, by Chair
Johnson.
ROLL CALL
Committee Members
Present: Committee Members Steve Barasch, Xenia Bradford; Katie Lichtig; Jan Marx;
Vilma Warner, and Chair Derek Johnson
Committee Members
Absent: None
Others Present: Al Eschenbach, Independent Auditor and ex-officio member, Sarah Meacham and
Monique Spyke, Public Financial Management (City’s Investment Advisor); Heather
Goodwin, Deputy City Clerk
PUBLIC COMMENT
Lenard Milstein, local business owner; voiced concerns regarding the City’s return on investments;
stated that he would like to see improvements and a better rate of return on the City’s investments.
Leslie Halls, San Luis Obispo, opined that she would like to see a better rate of return on the City’s
investments; inquired about how Measure G funds are utilized; stated that she would like to see the
City focus on paying off its debts.
Investment Oversight Committee Minutes – November 19, 2015 Page 2
1. INTRODUCE DIRECTOR SARAH MEACHAM AND DIRECTOR MONIQUE SPYKE
OF PFM ASSET MANAGEMENT LLC
Chair Johnson introduced the City’s Investment Advisor, Sarah Meacham and Monique Spyke,
representing Public Financial Management (PFM). Ms. Meacham and Ms. Spyke presented a
brief introduction.
2. INTRODUCE BUDGET MANAGER XENIA BRADFORD
Chair Johnson introduced Budget Manager Xenia Bradford; stated that Ms. Bradford will be
taking on the role of the Acting Assistant City Manager position for the Committee; Ms.
Bradford presented a brief introduction.
3. REVIEW OF INVESTMENT OVERSIGHT COMMITTEE MEETING MINUTES OF
AUGUST 13, 2015
At the request of the City Attorney, this item was continued to the next Investment Oversight
Committee Meeting to be held at the subsequent meeting; noted that this will allow staff ample
time to review the minutes due to the changes in Committee membership.
4. PRESENTATION OF THE QUARTERLY INVESTMENT REPORT ON PORTFOLIO
PERFORMANCE
Chair Johnson distributed the Quarterly Investment Report and City Investment Advisor’s Mecham
and Spyke reviewed the contents of the report and summarized the portfolio’s performance;
responded to inquiries from the floor.
Lenard Milstein, local business owner; voiced concerns related to the City’s investments; opined
that the City would have a greater return on its investments if funds were invested in the private
sector; suggested investing in long-term certificates of deposits.
Leslie Halls, San Luis Obispo, expressed concerns related to the City’s Socially Responsible
Investment Policy; suggested that the Committee review the polices from companies that the City
is invested in; explaining that some of the companies test products on animals and babies.
Independent Auditor and ex-officio member Eschenbach left the meeting at 2:27 p.m.
Following discussion, MOTION BY COMMITTEE MEMBER MARX, SECOND BY
COMMITTEE MEMBER WARNER CARRIED 5-0 (BARASCH ABSTAINING), to confirm
the Quarterly Investment Report, for the period ending September 30, 2015, is in compliance
with the City’s Investment Policy.
Investment Oversight Committee Minutes – November 19, 2015 Page 3
5. ITEMS TO BE ADDRESSED AT A FUTURE MEETING
Chair Johnson noted that the following items will be presented at a future meeting:
1. Discussion of cash flow and the City’s investments.
2. Setting the time and day for future Committee meetings for 2016.
ADJOURNMENT
The meeting adjourned at 2:40 p.m.
Heather Goodwin
Deputy City Clerk
Approved: XX/XX/16