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HomeMy WebLinkAbout11-06-2017 IOC Minutes  Minutes Investment Oversight Committee Monday, November 6, 2017 Regular Meeting of the Investment Oversight Committee CALL TO ORDER A Regular meeting of the Investment Oversight Committee was called to order on Monday, November 6, 2017, at 1:30 p.m. in the Council Hearing Room at 990 Palm Street, San Luis Obispo, California, by Chair Johnson. ROLL CALL Present: Committee Members Steve Barasch, Derek Johnson, Rico Pardo, Chair Xenia Bradford, and Greg Hermann Absent: Committee Member Heidi Harmon Others Present: Al Eschenbach, Independent Auditor and ex-officio member, Izac Chyou, PFM Asset Management LLC (City’s Investment Advisor); Brandon Rake, Analyst for PFM Asset Management LLC; Kelly Medina, Finance Administrative Assistant & Recording Secretary PUBLIC COMMENT ON ITEMS NOT ON THE AGENDA Leslie Halls ---End of Public Comment--- 1. OATH OF OFFICE OF NEW COMMITTEE MEMBER (HERMANN) City Clerk Gallagher administered the Oath of Office to Committee member Hermann prior to the Investment Oversight Committee meeting. 2. REVIEW OF INVESTMENT OVERSIGHT COMMITTEE MEETING MINUTES OF AUGUST 17, 2017 ACTION: MOTION BY COMMITTEE MEMBER JOHNSON, SECOND BY COMMITTEE MEMBER PARDO, CARRIED 5-0 (COMMITTEE MEMBER HARMON ABSENT, COMMITTEE MEMBERS BARASCH & HERMANN ABSTAINED) to approve the Investment Oversight Committee Meeting minutes of August 17, 2017. Per the record, Committee Member Barasch requests Mayor Harmon be up to date on review of meeting minutes from which she was absent. City of San Luis Obispo, Title, Subtitle    Minutes - Investment Oversight Committee Minutes of November 6, 2017 Page 2   3. PRESENTATION OF THE QUARTERLY INVESTMENT REPORT ON PORTFOLIO PERFORMANCE City Investment Advisor Izac Chyou reviewed the contents of the report and summarized the portfolio’s performance. Public Comment: None. ---End of Public Comment--- ACTION: MOTION BY COMMITTEE MEMBER JOHNSON, SECOND BY COMMITTEE MEMBER BARASCH, CARRIED 5-0, (COMMITTEE MEMBER HARMON ABSENT) to accept the Quarterly Investment Report for the period ending September 30, 2017 is in compliance with the City’s Investment Policy. 4. REVIEW INVESTMENT POLICIES AND PRACTICES, FOLLOW-UP ITEM FROM AUGUST 17, 2017 City Investment Advisory Izac Chyou presented. Committee questions followed. Public Comment: None. ---End of Public Comment--- ACTION: MOTION BY COMMITTEE MEMBER JOHNSON, SECOND BY COMMITTEE MEMBER HERMANN, CARRIED 5-0, (COMMITTEE MEMBER HARMON ABSENT) to accept and present to the City Council the proposed investment policy recommendations and make changes to recommended policies as presented by PFM. 5. ANNUAL REVIEW OF THE ALLOCATION OF CASH PORTFOLIO City Investment Advisory Izac Chyou presented the Cash Flow Analysis. Committee questioned followed. Public Comment: Leslie Halls City of San Luis Obispo, Title, Subtitle    Minutes - Investment Oversight Committee Minutes of November 6, 2017 Page 3   ---End of Public Comment--- ACTION: MOTION BY CHAIR BRADFORD, SECOND BY COMMITTEE MEMBER JOHNSON, CARRIED 5-0 (COMMITTEE MEMBER HARMON ABSENT AND COMMITTEE MEMBER BARASCH ABSTAINED), to make a recommendation to increase the portfolio managed by PFM to 75% of the total City portfolio by transferring funds from current City managed portfolio equal to 31% of total reducing the City managed portfolio to 25%.. 6. ITEMS TO BE ADDRESSED AT A FUTURE MEETING Continue Cash Flow Analysis Discussion 7. DISCUSSION OF INVESTMENT OVERSIGHT COMMITTEE CALENDAR The next committee meeting is scheduled for February 15, 2018. ADJOURNMENT The meeting was adjourned at 2:36 pm. APPROVED BY INVESTMENT OVERSIGHT COMMITTEE: XX/XX/2017