HomeMy WebLinkAbout02-25-2016 IOC MinutesCITY OF SAN LUIS OBISPO
INVESTMENT OVERSIGHT COMMITTEE
MINUTES
February 25, 2016
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, February 25, 2016, 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 Member Marx arrived at 1:33 p.m.
Committee Members
Absent: None
Others Present: Al Eschenbach, Independent Auditor and ex- officio member, Sarah Meacham and
Charles Cook, Public Financial Management (City's Investment Advisor); Heather
Goodwin, Deputy City Clerk
PUBLIC COMMENT
Allen Cooper, San Luis Obispo, expressed concerns regarding developmental impact fees, questioned
whether there is sufficient money to cover capital improvement projects in the City.
Investment Oversight Committee Minutes — February 25, 2016 Page 2
1. REVIEW OF INVESTMENT OVERSIGHT COMMITTEE MEETING MINUTES OF
AUGUST 13 AND NOVEMBER 19, 2015
ACTION: MOTION BY COMMITTEE MEMBER MARX, SECOND BY COMMITTEE
MEMBER WARNER, CARRIED 6 -0, to approve the Investment Oversight Committee Meeting
minutes of August 13 and November 19, 2015 (COMMITTEE MEMBER MARX
ABSTAINING FROM THE AUGUST 13, 2015 INVESTMENT OVERSIGHT COMMITTEE
MINUTES).
2. PRESENTATION OF THE QUARTERLY INVESTMENT REPORT ON PORTFOLIO
PERFORMANCE
Chair Johnson distributed the Quarterly Investment Report. City Investment Advisors Meacham and
Cook reviewed the contents of the report and summarized the portfolio's performance. Committee
questions followed.
Alien Cooper, San Luis Obispo, inquired about the City's cash investments and stated that the
portfolio percentage seems to be high for a non - interest bearing cash account.
Mila Vujovich- LaBarre, San Luis Obispo, questioned the difference between the terms
consolidated vs. PFM Managed as referenced on page 13 and 26 of the quarterly investment
report and inquired about how the City services debt.
Committee Member Barasch distributed hard copies of an email from FIN Facts entitled "Weekly
Financing News from George Smith Partners," Coast Hills mailer, and political cartoons.
ACTION: MOTION BY COMMITTEE MEMBER MARX, SECOND BY COMMITTEE
MEMBER BRADFORD, CARRIED 5 -1 (COMMITTEE MEMBER BARASCH VOTING NO),
to confirm the Quarterly Investment Report for the period ending December 31, 2015 is in
compliance with the City's Investment Policy.
3. DISCUSSION OF CASH FLOW AND CITY INVESTMENTS
Chair Johnson distributed the Cash Flow Analysis report. City Investment Advisor Meacham
reviewed the contents of the report. Committee questions followed.
Leslie Hall, San Luis Obispo, stated that the City could consider paying off long term debt and
recommended that the City invest in more aggressive managed accounts to get a better rate of
return.
Allen Cooper, San Luis Obispo, questioned and received clarification about whether the water
resource recovery facility upgrade would be funded with the City's cash reserves.
Mila Vujovich- LaBarge, San Luis Obispo, expressed concerns regarding the City's water
availability, asked if the City considered the impacts of a building moratorium on the City's
projected cash flow.
Following discussion, the Committee received and filed the Cash Flow Analysis Report.
Investment Oversight Committee Minutes — February 25, 2016 Page 3
4. ITEMS TO BE ADDRESSED AT A FUTURE MEETING
Chair Johnson noted that the following items will be presented at a future meeting:
1. Continued discussion regarding moving the August 11, 2016 Investment Oversight
Committee meeting to maximize public participation, allow the Committee members an
opportunity to plan vacations, and to reduce meeting absences.
2. Continued discussion regarding the City's cash flow and investments.
ADJOURNMENT
The meeting adjourned at 2:55 p.m.
Heather Goodwin
Deputy City Clerk
Approved: 05/12/2016