AGENDA NO. 37
PROPOSAL:
Investment Oversight Committee Appointment
SYNOPSIS:
Board action on April 12, 1996, approved a recommendation to minimize AQMD investments in the Los Angeles County Pooled Surplus Investment Portfolio (PSIP), by directing staff to work with the Los Angeles County Treasurer (AQMD's Treasurer) to make specific investments on behalf of the AQMD. This recommended action included the establishment of an Investment Oversight Committee, a Board advisory committee, to monitor AQMD's investments.
COMMITTEE:
Administrative, April 19, 1996, Recommended for Approval
RECOMMENDED ACTION:
1. Approve the following responsibilities of the Investment Oversight Committee:
- Monitor compliance with the AQMD's specific purpose investment policy.
- Review the quarterly report of investments to the Governing Board.
- Recommend for Board consideration modifications to the annually adopted statement of investment policy.
2. Authorize the Chairman to appoint the Investment Oversight Committee which shall consist of six members: three Governing Board members, of which one shall be Chair of the Investment Oversight Committee; two individuals with local government agency investment responsibilities; and one individual with commercial investment responsibilities.
James M. Lents, Ph.D.
Executive Officer
PHP
Background
Based on an extensive review of the AQMD treasury management operations and the risks and benefits associated with investing in a commingled county investment pool, the AQMD Governing Board, at its April 12, 1996 meeting, directed staff to work with the County to reallocate a significant portion of its short-term investments from the County's commingled Pooled Surplus Investment Portfolio (PSIP) into its non-commingled Special Purpose Investment Portfolio (SPI) and into the Local Agency Investment Fund (LAIF) managed by the State Treasurer. To implement and monitor this change in investment policy, the Board approved the establishment of an Investment Oversight Committee.
Proposal
The Investment Oversight Committee is an advisory committee to the Board, established for the purpose of overseeing the development and periodic update of an AQMD Investment Policy and Guidelines document; the monitoring of compliance with Los Angeles County and AQMD investment guidelines; and the review of the quarterly investment reports to the AQMD Governing Board. The Investment Oversight Committee will be staffed by the Director of Finance, with compliance and investment analysis provided by an independent advisor specializing in municipal investment services.
Resource Impact
Sufficient funding is available in the Draft FY 1996-97 Budget.