Res 2017-092/adopting revised Investment Policies for Operating Funds and Reserve Funds

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newly appointed Investment Officer must attend a training session of at least 10 hours of instruction within twelve months of the date the officer took office or assumed investment officer duties. The investment training sessions shall be provided by an independent source approved and authorized to issue PFIA training certification. For purposes of this Policy, an "independent source" from which investment training shall be obtained shall include a professional organization, an institution of higher education or any other sponsor authorized to issue PFIA training certification.. Investment Committee An Investment Committee consisting of the Finance and Audit committee members, and Accounting Manager is established to review quarterly reports and Policy changes as well as advise the City Council on investment matters. The Investment Committee shall, at least annually or as required by market conditions, review, revise, and adopt a list of authorized broker/dealers that may engage in investment transactions with the City based on the annual review of the financial condition and registrations of dealers and institutions conducted by the Investment Officer(s) (in accordance with this Policy). VII. INVESTMENT PROCEDURES The Investment Officer(s)shall establish reasonable commercial written procedures for the operation of the investment program consistent with this Policy. The procedures should include to safekeeping, repurchase agreements,wire transfer agreements, banking service contracts and collateral/depository agreements. No person may engage in an investment transaction except as provided under the terms of this Policy and the procedures established by the Investment Officer(s). Investment Committee will make the recommendation when to contract with an Investment Advisor/ Manager firm depending on market conditions and review/ analysis of contract cost versus investment portfolio return. All investment purchases will be executed using the competitive bidding process and settled on a delivery versus payment(DVP) basis.A minimum of three competitive offers on the purchase/sale of every security will be obtained or approval from an Investment Committee officer on a competitive offer due to market conditions and time constraints. All investment purchases will be executed in compliance with the Internal Revenue Service's Fair Market Rules. VIII. ETHICS AND CONFLICTS OF INTEREST Investment officers and employees involved in the investment process shall refrain from any personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions. Investment officers shall disclose in writing to the City Manager any material financial interests in financial institutions that conduct business with the City, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City's portfolio. Investment officers involved in the investment process with personal business relationships or relatives within the second degree of affinity or consanguinity seeking to sell investments/securities to the City shall disclose the relationship and file a statement with the Texas Ethics Commission and the City Council. Personal business relationships are defined in the Act. IX. AUTHORIZED BROKER/DEALERS AND FINANCIAL INSTITUTIONS The objective of safety requires that the City transact business with financially strong broker/dealers and financial institutions. Therefore, financial broker/dealers and institutions shall be subject to a screening process by the Investment Officers and/or City contracted Investment Advisor/Manager to eliminate those dealers and institutions that lack economic viability or whose past practices put the safety of public capital at risk. The Investment Advisor/Manager under contract will observe the instructions of the City with respect to broker/dealers who are approved to execute transactions involving the City's Managed Funds and in the City of San Marcos Investment Policy Page 3