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  Agenda Item   18.    
City Council Meeting
Meeting Date: 08/01/2017  
FROM: Bill Gallardo
Subject:
City of Brea/Successor Agency to the Brea Redevelopment Agency Statement of Investment Policy
RECOMMENDATION

Approve the City of Brea/Successor Agency to the Brea Redevelopment Agency Statement of Investment Policy.
BACKGROUND/DISCUSSION
State law allows the City Council to annually adopt the Statement of Investment Policy. Thus, per the City's fiscal policies, "The City Treasurer will annually submit an investment policy to the City Council for review and adoption." The Investment Policy serves as a guideline for the investment of City and Successor Agency funds.  The Brea Investment Advisory Committee annually reviews the Statement of Investment Policy for the City of Brea and the Successor Agency to the Brea Redevelopment Agency.

There have been no recent State Government code changes that are applicable and need to be reflected in the policy at this time.  On September 12, 2016, the Investment Advisory Committee made a change in its regular meeting dates in order to schedule those meetings following the end of each calendar quarter and to assure the most current information is available.  In order for the Investment Advisory Committee to review the information prior to the City Council, the reporting requirements in the City's Investment Policy need to be updated.  The Investment Advisory Committee recommended that the timing of the monthly Treasurer's Reports be moved from the second to the third City Council meeting following the end of each month.  For example, the Treasurer's Report for the month ended June 2017 would be due by the first City Council in August.   

Also, on April 24, 2017 and on July 17, 2017, the Investment Advisory Committee, including PARS and HighMark Capital Management, reviewed the Statement of Investment Policy and recommended expanding the responsibilities of the Investment Manager to include “Notifying the Investment Advisory Committee when investment portfolios demonstrate low performance, if any, which occurs between each periodic report.”  No other changes are recommended. The draft Statement of Investment Policy is included as Attachment A.

These two amendments have been made to the Reporting Section which begins on Page 1 of the City's Investment Policy.
 
COMMISSION/COMMITTEE RECOMMENDATION
The Investment Advisory Committee at its meeting on July 17, 2017 reviewed the Updated Statement of Investment Policy and approved recommending the updated Statement of Investment Policy.
FISCAL IMPACT/SUMMARY
There is no fiscal impact from the adoption of the Statement of Investment Policy.
RESPECTFULLY SUBMITTED:
William Gallardo, City Manager
Prepared by:  Ana Conrique, Senior Accountant
Concurrence:  Cindy Russell, Administrative Services Director
Attachments
Attachment A

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