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HomeMy WebLinkAbout12-13-2016 Item 12 Resolution extending the delegation of investment authority to the city treasurer through 2016-17 Fiscal Year Meeting Date: 12/13/2016 FROM: Xenia Bradford, Interim Director of Finance Prepared By: Rico Pardo, Accounting Manager/Controller SUBJECT: RESOLUTION EXTENDING THE DELEGATION OF INVESTMENT AUTHORITY TO THE CITY TREASURER THROUGH THE 2016-17 FISCAL YEAR RECOMMENDATION Approve a resolution extending the delegation of investment authority to the City Treasurer through the 2016-17 Fiscal Year. Background The City Council has previously appointed the Director of Finance to serve concurrently as the City Treasurer and has delegated responsibility for making investment decisions on behalf of the City to the City Treasurer. Each quarter the City Treasurer meets with the Investment Oversight Committee (IOC) to review the performance of the investment portfolio to ensure that the investments are managed in accordance with the City’s investment policy. To date, there have been no instances of non - compliance reported to the IOC. A copy of each quarterly investment report is also provided to the City Council for review at the time that it is prepared. The City currently uses an outside professional fund manager, Public Financial Management (PFM) to manage the City’s investments. PFM was selected through a competitive process and manages investments for public agencies throughout the United States. Staff reviewed the current Investment Management Plan to identify potential changes to the existing guidelines and none are being recommended., California Government Code Section 53607 states that the Council’s delegation of investment responsibility to the City Treasurer must be renewed on an annual basis. This report and the accompanying resolution are intended to provide the City Council with the opportunity to extend this delegation of responsibi lity through the end of the 2016-17 Fiscal Year. CONCURRENCES This recommendation is consistent with the City’s Investment Management Plan and California Government Code Section 53607. FISCAL IMPACT Delegating responsibility for making investment decisions to the City Treasurer does not create a fiscal impact, however the delegation of responsibility to the City Treasurer ensures that timely decisions will be made with regard to the City’s investment portfolio and taking into 12 Packet Pg. 206 consideration the City’s operational needs to maintain adequate liquidity to support its ongoing operations. ALTERNATIVES 1. The delegation of responsibility could be made to another member of staff having adequate knowledge of the City’s investment needs and the requirements imposed by the California Government Code (CGC). 2. If the Council declined to delegate this responsibility, then it would become the responsibility of the full Council to make the investment decisions on behalf of the City as directed by Section 53607 of the CGC. This is not recommended as investment decisions must be timely made and must be consistent will all applicable policies and laws and investment decisions should be based on the advice and counsel of professional fund managers who are informed by complex analytical research and a current and through understanding of relevant financial markets. Attachments: a - Delegation of Duties Resolution 12 Packet Pg. 207 R _____ RESOLUTION NO. (2016 SERIES) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN LUIS OBISPO, CALIFORNIA, EXTENDING THE DELEGATION OF INVESTMENT AUTHORITY TO THE CITY TREASURER THROUGH THE 2016-17 FISCAL YEAR WHEREAS, it is the policy of the City of San Luis Obispo for the Director of Finance to concurrently hold the position of City Treasurer; and WHEREAS, the City Council has previously delegated the responsibility for making investment decisions to the City Treasurer in accordance with California Government Code Section 53607; and wishes to extend the period of time for an additional year; and WHEREAS, the City Council has reviewed the outcome of the City Treasurer’s investment decisions and now desires to extend the delegation of investment authority to the 2016-17 Fiscal Year; NOW, THEREFORE, BE IT RESOLVED by the Council of the City of San Luis Obispo as follows: SECTION 1. The above recitals are true and correct. SECTION 2. The City Council hereby extends the delegation of duties related making investments on behalf of the City to the City Treasurer for the 2016-17 Fiscal Year. SECTION 3. The City Clerk shall cause a certified copy of this Resolution confirming the delegation of investment authority to be forwarded to the City Treasurer. Upon motion of ___________________________, seconded by ___________________, and on the following roll call vote: AYES: NOES: ABSENT: The foregoing resolution was adopted this 13th day of December 2016. ____________________________________ Mayor Heidi Harmon ATTEST: 12.a Packet Pg. 208 Attachment: a - Delegation of Duties Resolution [Revision 1] (1532 : Treasurer Investment Duties Delegation) Resolution No. (2016 Series) Page 2 R _____ ____________________________________ Carrie Gallagher City Clerk APPROVED AS TO FORM: _____________________________________ J. Christine Dietrick City Attorney IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of San Luis Obispo, California, this 13th day of December 2016. ____________________________________ Carrie Gallagher City Clerk 12.a Packet Pg. 209 Attachment: a - Delegation of Duties Resolution [Revision 1] (1532 : Treasurer Investment Duties Delegation)