Good morning, ladies and gentlemen.

Welcome to this November 14th meeting of the City Council's Rules Committee.

For the record, we have a quorum consisting of Council President Pro Tem Emerald, Councilmember Cole, Councilmember Kercy, and Councilmember Kate.

Also present are Felipe Monroy, the Mayor's Deputy Chief of Staff, and Community Engagement.

Are you Okay, committee engagement?

Independent budget analyst, Deputy Director Jeff Kowar.

Committee consultant Nika Bukolova, Chief Deputy City Attorney Priscilla Dugard.

Also assisting is Sarah Munjabi from my office and council administration committee liaison Mary Ann Wallace.

Beginning with the committee record of actions for the October 26, 2016 rules committee meeting.

They are deemed approved by unanimous consent unless pulled for discussion.

Seeing no interest in pulling the items, they are deemed approved.

We have no we have no non-agenda public comment today.

Do any of the committee members, mayor's office, IBA, or city attorney have any comments to make at this time.

Okay.

And uh you've offered great guidance and uh exhibited uh wonderful discipline and humor and uh vision.

And thank you for your service to the city, Sherry.

Can I second back in that?

Yeah, it's a motion, yeah.

There we go.

Thank you very much.

And and back at you, Marty.

Thanks.

For working with you on so many things.

Um this is my very last meeting as the chair of the rules committee, so I wanted to thank everyone that I had the privilege of serving with on this committee.

And I think it has been a very productive and wonderful time working together on uh the things that we have uh achieved.

And I am uh very grateful to be able to have the opportunity to serve with you.

Very proud of our efforts.

And um I look forward to seeing what you all get done.

I'll be watching.

Okay.

Oh, Gail, she's gonna sit this one out.

Granowich, um David Walters.

Yes, funds commission chair, Michael Levin with Canterbury Consulting, our investment consultant, and I believe it's Liz.

Correa, who is a financial operations manager with the Office of the City Treasurer.

Thank you all for being here today.

And you do uh have the floor for your presentation and Mr.

Walters will be conducting the presentation today, and we'll need about 15 minutes.

Good morning.

Uh, like you, this is going to be my last presentation as the head of the funds commission.

So by the time this happens again, my successor will be in place.

So good for you, good for me.

Um the funds commission was created back in the 30s under City Charter 41A.

And it was originally created to oversee the investments that supported the Mount Hope Cemetery.

Since then there have been additional funds added to that, four of which were to support specific or are to support specific libraries.

These were created through bequest or donations from various benefactors.

And then the sixth one supports the maintenance and support of the Peñosquitos Canyon.

So we have a total of six funds at this point with just over 20 million dollars in total investments that we supervise.

The funds commission basically oversees the investment of those funds.

We do not oversee the disbursements and payments from that.

Those all go through the Treasurer's office.

So in that regard, the investment structure of all except the cemetery fund is very similar.

That is 65 percent in stocks and 35 percent in bonds.

However, for the cemetery fund, because the principal cannot be paid, it's a perpetuity fund, the corpus cannot be invaded.

And 20 percent of the sales of any new niches or plots within the cemetery goes back into that principal, whereas 80 percent of it goes toward the support and maintenance of the cemetery itself, uh, along with all of the earnings from the investments that we oversee.

So to the extent that the maintenance exceeds the total of that 80 percent plus the earnings, that those funds come out of the general fund of the city.

So that's who we are.

We have a five-member funds commission, uh, one of which has to be a banker, which is yours truly.

I am with Bank of Southern California.

We have two investment managers who are uh citizens.

We have our representative from the City uh Treasurer's office, which is Gil Granowich and also now Liz, and we also have uh Stu Sweat from the City Attorney's Office, so the five of us meet quarterly to review the investment structures and the returns, which are quarterbacked by my colleague Mike Labin of Canterbury, who I will now turn this over to so he can talk to you about the performance.