HomeMy WebLinkAbout2018-09-04 Finance Committee Action Minutes
Special Meeting
September 4, 2018
Chairperson Scharff called the meeting to order at 6:07 P.M. in the Community Meeting Room, 250 Hamilton Avenue, Palo Alto, California.
Present: Filseth, Kou arrived 6:08 P.M., Scharff, Tanaka
Absent:
Agenda Items
1. Adoption of Fiscal Year 2019 Investment Policy.
MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to approve the City’s Investment Policy with the following changes:
Add language codifying the existing Environmental, Social and Governance (ESG) practices; and
Increase the Negotiable Certificates of Deposit (NCD) not to exceed limit to 20 percent from 10 percent of the par value of the portfolio to allow for greater investment with community
banks and increase portfolio diversification; and
Add “Supranational Organizations Securities” as authorized investments to increase social investing with not-to-exceed 10 years of maturity, no more than 20 percent of the par value
of the portfolio, no more than 10 percent of par value with any one institution, and with a minimum rating of Double A, and limited to United States dollar denominated senior debt obligations
of International Bank for Reconstruction and Development (IBRD), International Finance Corporation (IFC) and Inter-American Development Bank (IADB). Update Appendix A and C to reflect
the addition of supranational organizations as authorized investments; and
Add Manager of Treasury, Debt & Investments and Senior Management Analyst as authorized investment personnel to align with job duties; and
Increase the Manager of Treasury, Debt & Investments and Senior Management Analyst’s authority to transfer funds from the City’s general (checking) account to an authorized financial
institution to $10 million per day from $8 million per day to better align with increased cash activities; and
Remove the Tennessee Valley Authority (TVA) agency securities as an authorized investment and keep their existing $9.4 million investments to maturity to reflect the transition out of
fossil fuel-related investments; and
Add under SCOPE section that Public Agency Retirement Services (PARS) Section 115 Irrevocable Trust Investments are not covered by the investment Policy; and
Add the rating service agency Fitch as an example of a nationally recognized rating service; currently Moody’s and Standard and Poor’s are only mentioned; and
Review the Investment Policy once a year.
MOTION PASSED: 4-0
2. Prioritization Criteria and Planning for Palo Alto's Natural Gas Utility's Capital Improvement Plan.
NO ACTION TAKEN
3. Review and Discussion of the Colleagues’ Memo From Council Members DuBois, Filseth, Scharff, and Tanaka on Fiscal Transparency in Labor Negotiations.
MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to:
Direct Staff to develop a Draft Implementation Plan for review by all of the bargaining groups; and
Refer this Plan to the Finance Committee; and
Direct Staff to use the Finance Committee’s recommendation to “meet and confer” with the bargaining groups; and
Refer this Item to the City Council for approval.
MOTION PASSED: 3-0 Tanaka absent
ADJOURNMENT: Meeting was adjourned at 8:03 P.M.
ACTION MINUTES
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Sp. Finance Committee Meeting
Action Minutes: 9/4/2018
FINANCE COMMITTEE
ACTION MINUTES
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