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File #: 20-0569    Version: 1 Name:
Type: Time Certain Item Status: Agenda Ready
File created: 6/30/2020 In control: Board of Directors
On agenda: 7/28/2020 Final action:
Title: Approve the Revised Fiscal Year 2020-2021 Santa Clara Valley Water District Investment Policy and Approve an Update Executive Limitations Policy EL 4.7, Financial Management.
Attachments: 1. Attachment 1: Revised Investment Policy, 2. Attachment 2: Powerpoint, 3. Attachment 3: Sample ESG Evaluation Report for Deutsche Bank
BOARD AGENDA MEMORANDUM


SUBJECT:
Title
Approve the Revised Fiscal Year 2020-2021 Santa Clara Valley Water District Investment Policy and Approve an Update Executive Limitations Policy EL 4.7, Financial Management.


End
RECOMMENDATION:
Recommendation
A. Approve the Revised Fiscal Year 2020-2021 Santa Clara Valley Water District Investment Policy;
B. Approve an update to Executive Limitation Policy EL-4.7, Financial Management; and
C. Provide additional direction to staff as necessary.


Body
SUMMARY:
Executive Summary
Staff recommends that the FY 2020-21 Investment Policy be amended as follows:

3.5.1 California Bank Investments

Keeping investments to local banks, within the Bay Area, to keep money at home and jobs local; invest only in banks with below $10 billion in assets; and keep a minimum of 4% of liquid cash in banks with up to $10 billion in assets and 1% in banks with up to $2 billion in assets for a limit of 5 years (short term) at the discretion of the treasurer; such investments may be in the form of collateralized deposits, FDIC/NCUA insured CDs, CDARS, or any other legally allowable deposits.

7.13.3 Prohibited Banks
No investments will be made in any banks who do not have an Environmental, Social and Governance (ESG) ranking at or better than the "Average/Medium" category by at least one of the professional ESG research companies such as Sustainalytics, or other equivalent rankings published by other ESG research firms. Small and local banks/credit unions located within the nine Bay Area counties with total assets at or below $10 billion are exempt from this provision.

To ensure consistency in implementing the ESG policy related to banking and financial management, staff also recommends that Executive Limitation 4.7 Financial Management be updated to include the following new section:



E.L. 4.7.7
Valley Water shall not do business with banks who do not have an ESG ranking at or better than the "Average/Medium" category by at least o...

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Notice to Public:

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