DATE: June 12, 2018
SUBJECT:
Title
RESOLUTION AUTHORIZING THE REQUIRED ANNUAL ADOPTION OF BPC POLICY NO. 115, GUIDELINES FOR PRUDENT INVESTMENTS, WITHOUT ANY RECOMMENDED CHANGES TO THE CURRENT BPC POLICY NO. 115
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EXECUTIVE SUMMARY:
Board of Port Commissioners (BPC) Policy No. 115, Guidelines for Prudent Investments, requires that this policy, which contains the District’s investment policy, be submitted annually to the Board of Port Commissioners for review and adoption by resolution. This policy is also updated for relevant legislative changes to California Government Code Section 53600 et seq. which details numerous requirements on how and where public funds may be invested.
The California Debt and Investment Advisory Commission (CDIAC) published a statutory update dated January 1, 2018 reflecting changes in the law with respect to public funds investments. There were no approved legislative changes to the local agency investment codes during the 2017 Legislative session. As such, staff recommends re-adoption of the existing BPC Policy No. 115, Guidelines for Prudent Investments.
RECOMMENDATION:
Recommendation
Adopt a Resolution authorizing the required annual adoption of BPC Policy No. 115, Guidelines for Prudent Investments, without any recommended changes to the current BPC Policy No. 115.
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FISCAL IMPACT:
This agenda item has no fiscal impact.
Compass Strategic Goals:
This agenda item supports the District’s goal of a financially sustainable Port that drives job creation and regional economic vitality.
DISCUSSION:
As part of best practices and sound financial management and in accordance with BPC Policy No. 115, Guidelines for Prudent Investments, the Board of Port Commissioners reviews and adopts this policy annually taking into consideration changes in State law and other relevant factors and provides transparency and disclosure. Staff contacted the California Debt and Investment Advisory Commission (CDIAC), a State-sponsored commission which provides information and policy research for public fund investments to local public agencies. After review of CDIAC’s report on legislative updates effective January 1, 2018, staff found that there were no approved changes to the local agency investment codes during the 2017 Legislative session. As such, no changes to the District’s BPC Policy No. 115 Guidelines for Prudent Investments are recommended at this time and staff recommends the required annual re-adoption by the BPC. For reference purposes, a listing of the allowable investment instruments per State Government Code is included in Attachment ‘A’ and the District’s BPC Policy No. 115, Guidelines for Prudent Investments, is included in Attachment ‘B.’
General Counsel’s Comments:
The Office of the General Counsel has reviwed and approved this agenda and the proposed BPC Policy as to form and legality.
Environmental Review:
The proposed Board direction or action, including without limitation, authorizing the required annual adoption of BPC No. 115, Guidelines for Prudent Investments, does not constitute a “project” under the definition set forth in California Environmental Quality Act (CEQA) Guidelines Section 15378 because no direct or indirect changes to the physical environment would occur. CEQA requires that the District adequately assess the environmental impacts of projects and reasonably foreseeable activities that may result from projects prior to the approval of the same. Any project developed as a result of Board’s action or direction that requires the District or the Board’s discretionary approval resulting in a physical change to the environment will be analyzed in accordance with CEQA prior to such approval. CEQA review may result in the District, in its sole and absolute discretion, requiring implementation of mitigation measures, adopting an alternative, including without limitation, a “no project alternative” or adopting a Statement of Overriding Consideration, if required. The current Board direction in no way limits the exercise of this discretion. Therefore, no further CEQA review is required.
In addition, the proposed Board direction or action complies with Sections 34 and 35 of the Port Act, which allow for the investment of funds and for the Board to do all acts necessary and convenient for the exercise of its powers. The Port Act was enacted by the California Legislature and is consistent with the Public Trust Doctrine. Consequently, the proposed Board action is consistent with the Public Trust Doctrine.
The proposed Board direction or action does not allow for “development,” as defined in Section 30106 of the California Coastal Act, or “new development,” pursuant to Section 1.a. of the District’s Coastal Development Permit (CDP) Regulations because they will not result in, without limitation, a physical change, change in use or increase the intensity of uses. Therefore, issuance of a Coastal Development Permit or exclusion is not required. However, development within the District requires processing under the District’s CDP Regulations. Future development, as defined in Section 30106 of the Coastal Act, will remain subject to its own independent review pursuant to the District’s certified CDP Regulations, PMP, and Chapters 3 and 8 of the Coastal Act. The Board’s direction or action in no way limits the exercise of the District’s discretion under the District’s CDP Regulations. Therefore, issuance of a CDP or exclusion is not required at this time.
Equal Opportunity Program:
Not applicable.
PREPARED BY:
Robert DeAngelis
CFO/Treasurer
Attachment(s):
Attachment A: List of allowable investment instruments per State Government Code
Attachment B: BPC Policy No. 115, Guidelines for Prudent Investments