HomeMy WebLinkAbout05-14-2015 IOC MinutesCITY OF SAN LUIS OBISPO
INVESTMENT OVERSIGHT COMMITTEE
MINUTES
May 14, 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, May 14, 2015, at
1:36 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 Michael Codron, Katie Lichtig, Jan Marx, Vilma Warner, and
Chairperson Wayne Padilla
Committee Members
Absent: Committee Member Steve Barasch
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
Leslie Halls, San Luis Obispo, thanked the Committee for making progress on the City's finances,
noting her desire to get a better rate of return on investments.
L REVIEW OF INVESTMENT OVERSIGHT COMMITTEE MEETING MINUTES OF
FEBRUARY 12, 2015
MOTION BY COMMITTEE MEMBER MARX, SECOND BY COMMITTEE MEMBER
CODRON, CARRIED 5 -0, to approve the Investment Oversight Committee Meeting minutes of
February 12, 2015, as amended.
Investment Oversight Committee Minutes — May 14, 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.
Leslie Halls, San Luis Obispo, questioned the need to borrow money when the City has cash on
hand.
Following discussion, MOTION BY COMMITTEE MEMBER CODRON, SECOND BY
COMMITTEE MEMBER MARX, CARRIED 5 -0, to confirm the Quarterly Investment Report,
for the period ending March 31, 2015, is in compliance with the City's Investment Policy.
3. REVIEW THE CHANGES PROPOSED FOR THE INVESTMENT MANAGEMENT
PLAN AND THE CITY'S INVESTMENT POLICY
City Treasurer Padilla reviewed the proposed changes for the Investment Management Plan and
the City's Investment Policy and responded to inquiries from the floor and Committee.
Following discussion, MOTION BY COMMITTEE MEMBER MARX, SECOND BY
COMMITTEE MEMBER LICHTIG, CARRIED 5 -0, to amend the Investment Management Plan
as follows:
Section IV (Investment Vehicles), subsection Socially Responsible Investing to read as
"No new investments are to be made to support the direct production or drilling of fossil
fuels."
City Treasurer Padilla discussed and distributed hard copies of Committee Member Barasch's
email entitled "Investment Oversight Committee Agenda and Agenda Items" and responded to
Committee inquiries.
Leslie Halls, San Luis Obispo, summarized Committee Member Barasch's comments, noting that
the City needs additional long -term investments.
Following discussion, MOTION BY COMMITTEE MEMBER LICHTIG, SECOND BY
COMMITTEE MEMBER WARNER, CARRIED 5 -0, to recommend that City Council adopt the
Investment Management Plan with the following amendments:
• The inclusion of roles and responsibilities of the City Treasurer and the City Investment
Advisor.
• Delete Subsection 13 "Asset- Backed Securities (ABS)" of Section IV Investment Vehicles.
• Subsection 14 " Supranationals" of Section IV Investment Vehicles, should be amended to
read as "......No more than 3" 10% of the City's surplus funds may be invested in
supranationals."
(Committee action continued on next page)
Investment Oversight Committee Minutes — May 14, 2015 Page 3
Following discussion, MOTION BY COMMITTEE MEMBER MARX, SECOND BY
COMMITTEE MEMBER CODRON, CARRIED 5 -0, to recommend that City Council approve
the revised City Investment Policy, as presented.
4. DISCUSS THE INVESTMENT STRATEGY IN LIGHT OF POSSIBLE FEDERAL
RESERVE BANK ACTIONS AFFECTING INTEREST RATES AND THE RESULTS OF
THE RECENT CASH FLOW AND LIQUIDITY ANALYSIS
The Committee continued this item to the Investment Oversight Committee meeting of August
13, 2015.
ADJOURNMENT
The meeting adjourned at 3:10 p.m.
- 6aivAvdv) t
Heather Goodwin
Deputy City Clerk
Approved: 08/13/15