RESOLUTION NO.
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COTATI APPROVING
THE UPDATED INVESTMENT POLICY AND AUTHORIZING THE CITY MANAGER
TO EXECUTE ANY REQUIRED AGREEMENTS WITH OPTUM INVESTMENT
PARTNERS, CUSTODIAL BANK, AND BROKER-DEALER TO MOVE TO AN
ACTIVE INVESTMENT MANAGEMENT STRATEGY
WHEREAS, the City of Cotati has established and approves an Investment Policy regarding the Investment of the City’s surplus cash; and WHEREAS, the policy delegates authority for investing the City’s funds to the City Manager and Director of Administrative Services; and
WHEREAS, the Policy specifies the City’s investment objectives in accordance with California Law and provides a framework for managing and investing the City’s funds in accordance with these objectives; and
WHEREAS, the Administrative Services Director and City Manager have reviewed the existing policy and recommends the approval of the amended policy to improve controls and require additional procedures; and
WHEREAS, the Document will be updated periodically, but is designed with a longterm perspective and provides the basic framework and road map for addressing a wide variety of financial and economic conditions that the City will encounter, as well as support long-term planning and enhance the City’s effectiveness in implementing long-term strategies to deliver efficient services to the public; and
WHEREAS, the City of Cotati would like to utilize the services of a registered investment advisory firm to assist with the investments other than LAIF, to ensure compliance with the government code, by safeguarding principal, ensuring appropriate liquidity, and achieving market rates of return, and
WHEREAS, staff have worked with Optum Investment Partners (OIP) to evaluate the City need of an investment partner that support the treasury functions of investment laddering, reporting, and cash flow projection planning while remaining reasonably-priced; and WHEREAS, OIP is a reputable company with a record of providing solid investment portfolio management services and its fees are reasonable given the relatively smaller size pool of investments the City must manage; and
WHEREAS, the City must also establish a relationship with a custodial bank and a brokerdealer to effectuate the asset sales/purchases, as directed by the City; and WHEREAS, the action of adopting Financial Principles and Policies does not constitute a project as defined by California Environmental Quality Act (“CEQA”) and CEQA Guidelines Section 15378; therefore, no further environmental review is required.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cotati hereby:
1) Approves the Investment Policy, attached as Exhibit A to this resolution, and 2) Authorizes the City Manager to execute the agreement between the City and Optum Investment Partners, attached as Exhibit B, for professional services related to the management of the City of Cotati’s investment portfolio, and 3) Provide authorization for the City Manager or Designee to execute other required contracts including those needed for a broker/dealer account and investment holding (custodial) bank, as needed to move forward with the active management principles as outlined within the amended City Investment Policy.
IT IS HEREBY CERTIFIED that the foregoing resolution was duly adopted at a regular meeting of the City Council of the City of Cotati held on the May 9th, 2023, by the following vote, to wit:
Approved:________________________________
Mayor
Attest:____________________________
Kevin Patterson, Deputy City Clerk
Approved as to form:
____________________________
City Attorney
Attachments:
Exhibit A - City of Cotati Investment Policy (PDF)
Exhibit B - Optum Investment Partners Engagment Proposal (DOCX)