RES-8801 Establishing Regulations of Investment Advisory CommitteeRESOLUTION NO. 8801
A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF ORANGE ESTABLISHING
THE PROCEDURES, RULES, AND REGULATIONS
FOR THE INVESTMENT ADVISORY COMMITTEE.
WHEREAS, the City Council, at its meeting of June 10, 1997, established the
Procedures, Rules, and Regulations for the Investment Advisory Committee and directed staff to
prepare a resolution formally adopting these Procedures, Rules, and Regulations. These
procedures apply to the conduct of the business by the Investment Advisory Committee of the
City of Orange.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange
as follows:
1. PURPOSE
The Committee's primary purpose is to independently review the City's investments to
determine their consistency with the City's investment policy's principal objectives of safety
first, liquidity second, and total rate of return third.
2. MEMBERSHIP AND APPOINTMENT
The Investment Advisory Committee shall consist of up to five (5) voting members. The
City Treasurer and Finance Director shall serve as non-voting members of the
Committee.The Qualifications of the applicants for the Committee will be reviewed by a
panel comprised of the City Treasurer, City Manager, Finance Director, and three outside
experts in finance or investments. Those candidates passing the pre-screening process
will be interviewed by the City Council Members. The Committee members shall then
be appointed by the City Council in accordance with procedures established for appointing
members of the City's commissions, boards
and committees.3. QUALIFICATIONS
FOR MEMBERSHIP The members of the Committee must either reside and/or be permanently employed
in the City of Orange. Qualifications being equal, preference will be given to
Orange residents.The members of the Committee shall have substantial education
and demonstrated managerial experience [of no less than five (5) years] in one or more of the
following areas:
Investment Banking Investment Brokerage
and Sales
Investment Management Financial Management
and Planning
No member of the Committee shall be financially interested in any contract, or otherwise
conduct any business with any member of the City Council, the City Manager, the Finance
Director, the Treasurer, the City or any of its agencies, either on an individual basis or as a
partner, major shareholder, member, or employee of any firm.
4. COMPENSATION
Members of the Committee shall serve without compensation.
5. TERM OF MEMBERSIDP
The Investment Advisory Committee members shall serve for a term of two years, or until
his or her respective successor is appointed. In order to provide continuity within the
Committee, term expirations will be staggered. The City council will designate the initial
term expiration of the Committee members' appointments as follows:
Two members on the thirty-first (31 ") day of August following the first year
of
appointment Three members on the thirty-first (31 ") day of August following the second
year
of appointment
6. MEETINGS The Investment Advisory Committee will meet at least once each quarter and
shall hold other meetings on an as needed basis. All meetings shall be held at the City Hall of
the City of Orange located at 300 E. Chapman Avenue, Orange, 92866. Meetings will
be conducted in compliance with the Brown Act. The City Council will be advised of
any Committee member who misses three or more Investment Advisory Committee meetings in
a twelve-
month period.7. DUTIES OF
THE COMMITTEE The Investment Advisory Committee reports to and acts as an advisory body
to, the Investment Oversight Committee. Their duties shall consist of
the following:Review the City's Investment Policy annually and recommend revisions
as necessary.Review the Treasurer's Report as defined by the State of California
Government Code Section 53646 to insure conformance with the City's Statement of Investment
Policy and review related factors such as risk, diversification,
and maturity.Provide advice regarding potential investment, potential investment
strategies, and suitability of pools such as Local Agency Investment
Fund (LAIF) .Provide written recommendations to the Investment Oversight Committee.
The unedited and uncensored copy of the Committees recommendations shall be provided to
the City Council along with the Investment Oversight Committee's recommendations
for any City
Council action.Reso. No. 880 I 2
The Committee members shall act solely as an advisory body and shall not exercise
decision-making authority, nor shall they be involved in the day-to-
day financial and accounting operations of the City. The Investment Committee shall not make,
or direct City staff to make, any particular investment, purchase any particular investment
products, or do business with any particular investment companies,
brokers, or advisors.ADOPTED this 22nd day
of
July 1997.ArrEST:
1AiMAAl~d6dt'~;C Cassandra J.
Cath , City Clerk I hereby certify that the foregoing Resolution was duly and regularly adopted by
the City of Orange at a regular meeting thereof held on nnn of ,T1l1 y , 1997, by
the following vote:AYES:CO~CIL~E~BERS: MURPHY, SLATER,
COONTZ, SPURGEON, ALVAREZ NOES:CO~CIL~
E~BERS: NONE ABSTAIN:CO~CIL~
E~BERS: NONE ABSENT:CO~
CIL~EMBERS: NONE
G~d~ityoforange Reso. No. 880 I