Audit Committee - Regular Meeting

We call the order. We have a special calling calling today? May. Yeah. Can we have a roll call?

Sorry. Council member Mohan? Here. Vice mayor Moore? Here. Han Yanwu is absent and chair.

Here. Great. We've got a quorum. Let's get started. We've got a special item on our special agenda here. So I don't see anybody from the public. And so we're gonna jump right to item one of the new business, which is information item to receive the treasurer's investment report for the quarter ending 03/31/2025. Jonathan, you wanna kick it off, and then we'll proceed.

I'll start us off with, the investment report. Hopefully, between here and the next few minutes, Carlos, our channel will be able to jump.

So

before you is the, third quarter, 03/31/2025, investment report.

Oh, yes. Sorry. One.

And before and here's our cash balances, for various balances. As you can see, our Wells Fargo balance has increased, approximately $4,000,000. This is a net difference between cash received of additional 4,000,000. What is key to note here is we did spend or remit about $12,000,000 to that as part of our tax sharing agreement. This was offset by a larger increase in revenues, relating to sales tax and property taxes and VTC or or, people like VLC prior taxes.

Workers' comp, predominantly decreased, and this is just adjusted each month based off of the need. Our cash equivalents for late for local agency investment fund, increased by about 800,000, and this is just strictly interest earnings that that that that Lath earned in q q four fiscal year the calendar year 2024. And then investments, as you can see, it's increased by $1,300,000, and this is also just strictly due to interest earnings with with Chandler. Far as a a decrease in that is largely based off of, their their earnings? So do you have any questions?

Or Yeah. Katie.

Thank you. Do

we have a limit for how much can be in Leith?

Leith is capped at 75.

5. Okay.

So if we were to I have yet to hear whether if we were to take that to the max, let's say it because their interest is allocated the following of each quarter. So it'll be January, April, July. What happens if we're at 75,000,000 and interest is earned? Does that mean they automatically, remit those funds to the city and maintain that that 75,000,000. I I am unsure. I can get that information back to you. Susan, want to pursue that.

Okay. And there's a second part of the question because I noticed in the Chandler report, they had a purchase of local agency investment fund state pool in there. It wasn't much. I mean, considering we have 75,000,000, it was 773,000. So maybe when we get to the Chandler report, we can look at that. Because I I it's like the first I've seen it, and I knew there was some limit.

This one Yeah. I'm not sure how that would play if the city has a direct investment versus using a third party like Chandler that would also invest Yes. Funds because the it's held in a custodial account. Right? So I'm not sure how that would you're saying that they invested into LACE? Because I didn't see that

Like, it's acquisitions purchase 03/31/2025.

Is that possibly a consolidated element of where

That that may be the Oh. What we're seeing here.

So So 800,000, it's your

ah, yes. So there's gotta be. Yeah. So that's they're what they're trying to do and this is what we're we're moving towards is having Chandler capture all of our cash, accounts, which includes Wells Fargo and, Lathe. So you would be able to go into one report and see everything that's going on with the city. And this is part of that adjustment that I want us to to make, and we'll see a complete view of that in our next meeting in July. Okay. So it'll it'll have our beginning balances, our and our ending balances for both 03/31/2025 and 07/30/2025.

Okay. So to that point, it it just needs to kind of highlight who's the custodian of what in this list so that I don't or other people don't make the same.

There's some formatting that we we we did recognize that that we would wanna adjust. And so, yeah, that that'll just take some some some adjustments.

Okay. Well, I'll I'll be a good for that.

Why don't you continue, gentlemen? Unless you're finished, we can go through the staff report even while we're waiting for Carlos. I've got some questions. We may the rest of us may have some more.

Yeah.

If you have some questions, we can go ahead and address the staff report. There were some changes, as you know, to the staff report to condense it and to make it more streamlined and to to get straight to the point. So if there was additional inform well, there weren't additional information that were, one, either not static because we hadn't had the opportunity to close on our books, and there's some cash flow or items that were redundant because they were also located in Chandler's report. So we went ahead and stripped that out of the report just to make it a little more user friendly and kind of so that someone coming in and has not been familiar with the report look at a twelve, thirteen page document and not know what to to kinda focus in on. So by limiting it to the the third the the six pages or so, it kind of highlight the the more important information.

We are still looking to to to kind of weed out some of the more, some of the information that we may not need, but, I am open to any suggestions if you want me to keep anything specifically or, something that you would want to, maybe agree with me. Why don't we I'm gonna add,

ask and is but I don't know that it's particularly relevant. You you talk about the RFP on page four. Twenty eight nineteen, the city conducted a RFP for management services, selected Chandler. We did approve what I'm in was interested in was what amendment we're on. So we approved the third amendment to that was agreement 18 Dash245 in May 05/21/2024, and it expired 2028 with a one year extension.

And then there's a part of that where it's kind of like a Greg card question. Are still within, like, our purchasing policy, how much money that they've gotten or, you know, when are we gonna need to go out for another RFP in the future?

If we could add that in. I've had discussions on this with with Greg, and he these are one of those interesting, cutouts that a lot of agencies aren't miss I'm not saying they don't follow a procurement policy, but it's it's a bit nuanced, very similar to legal cost. Right? So that's not something that typically follows a very strict, procurement policy. And so, I can go ahead and, we'll be sure to add something in next time to see what what what kind of, how we'd follow our purchasing policy and and so that it's a little more clear apart from the amendment amendment number and what the current terms of the the agreement

is with Challenge.

Does this The audit committee I don't think we do, but does the audit committee go over the ever?

No. That's not part of the from my understanding, it's not part of the rules and responsibilities as stated in the municipal code.

Mhmm. Because I was hitting the same kind of a question with regards to some of our parks and rec contracts that can get well over the 200 and something thousand as time goes on and they use the same, like, math Olympiads person or ceramics person and then many, many years pass. So okay.

In terms of audit committee, just as as a comment, that's one of the beauty parts of having the internal audit team. We can if we can remember these various things, we can add it into their work plan because I think they've looked at purchasing it for some departments. They haven't necessarily looked at that particular, but maybe they looked at the the limit for the department that they looked at. But we could add that into what we want them to look at in some future work plan, and then we would be addressing it as an audit committee, I think. That would be one way, for example.

Just to add to that, I recall the amendment that we did that you did last year, and there was we had some in-depth discussion about should we go out and do an RFP, or should we continue with With the or others? Yeah.

With With China.

With China.

Yeah. It it as you may recall, we did go to council on on this. And I to be frank, I don't remember the exact where we've landed. I think we we extended it a couple years, and we did put in a about to exceed amount. And I so yeah. So I'm highlighting the there there is a cost associated with having, Chandler, as part of our asset manager.

Right. Right. I'm seeing the the percentages. Yeah. So it was a a 600,000 not to exceed $20.28 with a one year extension. Yeah. I've I've pulled it up to look at it. But, anyway, if we had a mention because when this comes back again, if the staff report can have it have that agreement number, and then I can go through these steps again faster. I'm sort of certainly helping myself out.

And if we we can either continue this this q and a, or we do have Carlos on online now.

Well, let's continue the q and a, and then we'll maybe we'll get Carlos. I've got one. Do you have one on the

I have one.

Why don't you go?

Okay. No. My question was about the section one fifteen trust. And so this reasonable explanation, but I still wanted to hear it from you. The investment return was sort of a negative point four four and point four three for the two different than just wondered what the rationale for that.

So there

as you can see, it's a bit different than what Chandler is showing here because they do follow different investment guidelines and goals. So they as you you may remember, PARs can invest in equities, and and so the values for those equities, there there could be losses. Right? However, the others are also a huge positive upswing if, the market's doing well. So for that reason, you'll you saw that negative, balance at June 30 or June 30 March 31 for pars. And I think they they touched on it of last two weeks ago?

Yes. Two weeks ago. Yeah.

So we had a robust discussion, and and I hope they're they're gonna PFM or US Bank will come back with some variance analysis as what accounted for because the index was not down by that much, the benchmark that we're using. So that was a big question that we spent some time on, and I hope hope they'll come back with something.

Yeah. We've been we've been in discussions trying to get to be able to provide that that that supplemental report or incorporate it in the current report so that we have a a more I wouldn't say user friendly, but more comprehensive report to kinda guide us through how are they how are they bench benchmark. Because currently, they are not following the benchmark to a t. It's just a essentially an indicator of how our particular market's doing or a particular set of of investments are doing. And that's what we we strive for.

So if there is if there's a if you would like to move towards nearing that, benchmark, they can certainly do that, or if we're gonna deviate from that benchmark, depending on what your investors are saying, the strategist. Why are we doing that, and what what what is the this upswing or what is the downswing that have been making those investments? And that's what that supplemental report or additional page kind of bridging the two, with with, what that's the the purpose of that additional page.

I think it's a great point, though. We like we can accept deviation, but when it's a negative deviation, then it's less acceptable. Right? We so we we we're gonna spend a lot of time that we might wanna budget even more time for US Bank when they're going to we'll find out what the markets do, course, June 30 in our July meeting, but looking forward to another robust discussion. I'd like to kick off and maybe Carlos is on board now, but there's a compliance section at the very end of the staff report.

And over the years, it's been a a topic of discussion. So let's my my question for it is, for example, the the the sentence that I'm particularly interested in is that in compliance with California government code five three six four six b three, the city maintains the ability to meet its expenditure requirements for the next six months. So that's a very nice statement of the compliance. And in prior treasurer's reports, we would have a series of graphs. Before that, we would have a series of tables.

We've had all kinds of of goals of bridging that, state the facts of the cash balances, for example, that you just gave us. So I took a quick look at, AI and intelligence can help us. So our four neighboring cities do it somewhat differently. They they, and I sent to city staff what my research uncovered for for what it's worth. But the bold statement here, I think even if we go back to the ancient history of the graphs that we had in the previous report, it would include revenues, for example, that are the property tax, for example, is asynchronous.

It doesn't come in every month, so it throw it's it throws off a a simple projection. But there are revenues that come in that also offset your expenditures. It's not just the cash sitting in the which fortunately Cupertino has a very liquid situation. The lathe you were just raising, it's a pretty high balance. It could cover unexpected elements.

But so what I'm driving at is there's two points to to this compliance statement. You could add in as some of the other cities in our neighbor neighboring cities do where they say, taking into account the revenues from property taxes, sales taxes, other revenues that are gonna come in and the the cash balances, and the projected expenditures, the compliance is satisfied. And, of course, the bigger cities have a lot bigger staff, so they can do these little tables of liquidity and cash projection, which maybe isn't appropriate for maybe a smaller staff like Cupertino. But he to me, we could go back five years and see what the average six month rolling net expenditure was and say over the last five years for six on six month periods, it was a range of a minus 2,000,000 to a plus 4,000,000 or or whatever the number is. And then that that allows us to say, well, yeah, the liquidity is way over that.

We could sell a lathe or we could do whatever. So then clearly, you your statement is is supported by information in your report. And then last question on this statement, some cities even take into account capital expenditures in the word expenditures. And I don't know what you're got you're you are thinking about, but to me expenditures probably would include capital expenditures. But what what's what's your thinking on that? Because I guess you could still do the five year look back that takes six years rolling. But if you put capital expenditures in there, it's kind of a little bit more high. You could have big jumps at times.

Yeah. Great questions. We can certainly together to have that that rolling, six month average over

the course of five years and, provide that number. The benefit is you wouldn't have to update it every every three months. Drawback to having those graphs that we used to have because So

what we can probably do is set that that that, balance. And unfortunately, for the city, there's we've had some budget cuts. So some of those numbers might be, I wouldn't say artificially, but in a sense, it's artificially decreased. Right? Because we did cut back due to the CDTFA audit, some of those expenses, and as we're trying to ramp some of that getting finding that new normalcy. Right? The the that that six months could be greater now. So, however, the city is quite liquid right now. I have no doubt that even within that's sitting in our checking, plus what's sitting in late, we're gonna have more than enough to cover a a six month average. But, yeah, we can certainly do something along those lines that kind of support that that that assertion.

I think even the generation of those graphs was because we can this statement makes perfect sense, but without more behind it. If if had a $100,000,000 expenditure coming up in the next six months, that that might stress the ability to satisfy the compliance requirements. So okay. And and I'm not saying by any means we should go back to the 20 page commentary and things, but that rule over years, I think, in response to trying to satisfy some more color, which can be done in many different ways. Okay. Maybe it's time we've got a little bit of time left here. Yeah. Perfect. Did Carlos have something to say? We're happy to always hear from Carlos.

Absolutely. So, first of all, I apologize. I I when this invitation landed in my inbox, on my calendar, it landed from 04:00. So I'm not quite sure what why that happened. That's happened in the past. So we just we'll to connect them just to make sure that that doesn't happen in the future. Secondly, I've I've been listening in on the conversation, so I I I wanna make sure that I address any questions you may have. The investment portfolio was not covered the last time because I think you guys bumped me to the next time period. I'm not sure if that's what you'd like me to cover now. We did spend some time on the investment policy. Think there were some questions around the reporting and what's required from California code. I'd just like to know from this body which direction you'd like me to go and how long you'd like me to take to do that.

Sure, Carl. So sorry for the time. I think what happened is through a glitch, we didn't get this on the agenda in time for public notice. So we would have covered it probably with you, but we couldn't, because of the Brown Act, or or Notification Act. So what we did was come up with a special meeting in advance of a forty five day requirement that's out there, and this meeting is just barely within that limit.

We set thirty minutes for it, so we've got another five minutes that we can spend. I think we we have had some questions. I think one question, if I can speak for vice mayor Orr, was in future or maybe even now, we we're gonna have a consolidated report in from you guys that includes what we've been seeing from the city separately. That it might be nice if you could expand on what you think that's gonna be like or what the purpose of that is, the benefits. And then the compliance question, if you were just listening to, I think, a little bit more other cities do provide more, like, color around the compliance statement. So I'm I'm striving to get something simple but doable.

You got it. Let's answer vice mayor Moore's question first, which is which is about the reporting and the consolidated. I think it's important to note that the so so Chandler obviously manages a portion of the city's investments, but doesn't manage all of it. There's other amounts that are sitting in the state pool in local agency investment fund, And there's also some at at the bank, which is invested in a money market mutual, fund, which acts like a sweet vehicle. At night, it pulls it out of that bank account, and it gets invested in short term investments, and it gets moved back.

It has a high degree of liquidity, but it's earning some decent yields right now. So the combination of all of those plus some cap some some balances at the bank itself are the totality of your investment program. We're only about a portion of it. We're only about a portion of it, but we have the ability to report on all of it so long as staff provides us with the balances. We can only do that on a month end basis, and anything that the staff passes on to us, we can report the month end balance.

In terms of the earnings, it it just depends on the security. If it's late, we can usually keep up with with the late factors and report an accrual so that you get an idea so that it flows through your earnings in our statements. But if it's at the bank, we we we have no access to that. We don't know what the factors are. So you just see the the the balance on there.

How this is helpful to you, vice mayor, is it gives you one place where you can go and see your entire investment program. That's the value of that. It allows you as a policymaker to very quickly ascertain how much money the the the the investment program has and where is it invested, and you'll see that broken out on a consolidated basis. There is anything that you are that that that's that staff is pushing on to us again, we since we don't manage the entire value, it means it means that we rely on staff to get us those balances, and as quickly as they can get them to us after month end, the better. But we generate a monthly compliance report, and we do that on a consolidated basis.

And and that's not done by the investment team, which of which I'm a part of. It's done by our independent compliance team. So they're looking at the entire investment program, and they have a summary of your investments, and they list whether you're in compliance or not. And that's another report that you, as a policymaker, can very quickly go in and see whether we're in compliance or not. California code's requirements on reporting are very minimal, very, very minimal.

The only requirement that California code has is that the staff report monthly transactions, and even that is open to interpretation. Now staff goes above and beyond that. They have their own staff report and write up. It's a treasurer's report that they write up, and they also use our materials, which give you everything that there is under California code fifty three six four six. But fifth fifty three six four six, I just wanted to make sure you're aware, is optional.

It's not you know, it's a good idea to maintain it. Policymakers have to know what they're dealing with, and 53646 does a good job of of feeding you that information, but it is optional. You're not required to do it, and not all cities do this amount of of reporting. Lastly, I'll say this. The returns that we generate can only be generated on the amounts that we manage.

We cannot generate returns or any other additional or specific information on balances that we do not manage, you know, but we can generate some positions. You know, if we we know what's in there, we can you know, if it's late, we can tell you how much you have in late and then roll it up so that you can see it on a consolidated basis with everything else that you own. So there is value to that, but but it's limited, and it's only at points during the month, meaning after month end. We can't during we can't provide data during the course of the month like we do already for the for the assets that we do manage. Let me pause there, and maybe you have some questions.

Mhmm. Go ahead. Yes.

So I'm I'm looking thank you for that information, and I'm I'm looking at the the holdings report, and you're showing I I can tell that, like, the first part is what's at Chandler. This first account, 10659, that must be what you're managing, given what I see is in that account. And then you have a separate, and I I'm gonna say this is a consolidated account, 10663, because it has LAFE here, and then you have cash, a custodial cash account, and then some other ones. So there I I'd like to understand what this is a, like, a this is a consolidation of. It's, page 44 of your report or 54 of the PDF, page numbering.

So vice mayor Moore, if I may share my screen, I'm about to do that right now. So K. Correct. In the holdings report, as you correctly identified, this one zero six five nine is the main portfolio that we manage. And, of course, if you go to the very end of it, that's a 171,000,000 $171,300,000, which I'm zooming in on right now. Okay? So and that's and then another million 1,100,000.0 in accrued interest. When you include accrued when you include accrued interest, it's a 172. And then we get to the next page that you mentioned. This is just when you see the word reporting, this is a reporting account, meaning these are the balances that staff has reported to us, meaning we don't manage it.

And that's cash custodial can't. So this is this is some of the monies that are invested in that money market fund sweep, and then this receivable is some dividends or accruals that haven't come to you. And then, of course, the WAIF component. That's just the reporting, meaning we don't manage this, so this just this is just but a segment. This is valued at $113,000,000 If you go beyond that section, there's a divider.

Wait a minute. Let's see. We we I don't see it in here, but in the past, we have in the holdings in the holdings themselves, we can give you a consolidated holdings that shows you everything. And if you go back up in those in this report, which I'm doing right now, so you'll notice that there's there's the information for 10659, the account that we manage. There's your returns. There's the net of fee. There's the the there's the actual return. There's the benchmark, and then the net of fee return, which is something that this committee has requested in the past. And then we go ahead, there's the reporting on a cons on a total basis, 113,000,000. That includes accrued interest.

There's the holdings, how much in life, and how much is considered cash. And then you have a consolidated section. So this is everything. The 285 that you see here, that is everything. And then the average yield, the average market yield, which refers to reinvestment, the average credit quality, the average days to maturity. So if I go forward, then you can see a breakout of where that is. So you can tell immediately that treasuries make up a quarter, LAIF makes up a little bit less than that. That's your second biggest holding there. And then you can see how it's diversified. So this includes everything.

It includes the portion we manage and the portion that we do not. Now in the holdings report where you went where you can see it by asset level, it it isn't in here, but that's something we can include, a consolidated holdings report. That's not a problem.

Okay. And and, thank you. I appreciate that we have the the LAFE and parse the actual statement, but I'm going to wanna see the statements from the other accounts to have some kind of backup here because we don't have any check-in, from seeing the statement to this report to, like, verify.

I understand. So, just to if Carlos can get us back to page 44, I just wanna highlight something and then So one of the reasons we've discussed earlier is that we want us I'm probably gonna roll this back just to the basic essentials, which does not include these cash accounts for this quarter. We have that report. This one was adjusted afterwards to include some of those balances. This is where we ironically line three, we got cash for a 164,000.

That should not have been included. I provided that in, that number to Chandler. This is that, flex benefit account that should not so, what we're gonna do is we're we're gonna provide this report to counsel, but, again, that is how it's historically been reported, which did not include these cash accounts. Starting next, quarter, we'll have that comparison. What is the late balance for the beginning of the bal the the the quarter, which is your the q, March 31 balance as well as the June 30 balance.

So you'll be able to see that change. So that's an adjustment we will be making on the next run. And so it'll clean up that that that balance there, and then then we'll be able to consolidate this. Because there is apart from this, you can also see the change there's other reports, I believe, in or other section of this report that would misrepresent these balances. So page 30.

Carlos, can you go to that page?

Yes. Of course.

Okay. So my question is is to would we have any, like, attachments? Like like, I it's great that we have the statement of transactions for where the Chandler account actually is, but it'll have but what we're missing is I think it's the custodial cash account.

That's our Wells Fargo checking account.

Yeah.

And the other the 16,000, that would be our workers' comp account that the city also has.

So even a heavily redacted one would be would suffice. I'm just looking for some way to check Zach and go, oh, yeah. Yeah. It's the same. And it so in Okay. Case because you're handing off information to another organization, there's there is an opportunity for something to not blow. And then then we have that surety that, yeah. Yeah. You see this? We see that? And then it's all good.

Yeah. We can we can put something together, whether it's a separate statement. If you can get Wells Fargo to provide us a a very rudimentary, hey. This is your balance at the end of the the kind of supporting that number rather than a statement that's been heavily redacted.

Yep. Okay. That works. Good.

Okay. Any other we we appreciate I I think you didn't comment on my particular compliance question other than saying it was voluntary, which is news to me. So but a lot of cities do provide that statement, I think you're saying. To me, you may may remember we frequently ask you how often do you do a cash flow projection with the city staff? And when you first came on board, you did a more detailed one or your team did, and then periodically, you ask staff whether there's any items that that might be unusually large that you should take into account because your portfolio planning involves that.

Correct. We we did do one when you we initially came on board. There were a couple things. Remember that the kind of cash flow analysis that we do is a statistical analysis. So it it it relies on on the seasonality and the the the repetitive nature of the revenue collection cycle and the expenditure cycle that any typical city has.

When that breaks down, you know, kinda breaks down the model, so there was a season where there was a lot of unknowns. The city had a lot of unknowns in related to this tax dispute that that that the city had. Now that that's been solved, it may be worth revisiting. Having said that, staff always has had a pretty good handle on what they needed from a cash basis, and and they communicate that. That's a discussion that we've had all all along the way.

To to your first comment, you're looking at California government code fifty three six four six. In the case of a county, the treasurer may annually render may annually render a policy. In the case of a local agency, may annually render a statement of investment policy. And then here it is. The treasurer or fiscal officer may, and the keyword is may, which I'm highlighted highlighting right there, may render a quarterly report to the chief executive officer, the internal auditor, and the legislative body of the local agency.

If you do it, then you have to follow these precepts. That's how fifty three six four six reads, but the keyword is the word may. It's it's optional. The only requirement from code that you'd report comes directly out of fifty three fifty threes fifty three six five hundred point three, I think it is. Hold on a second. I'll give it right there. I'll find it for you. I've got it somewhere here.

607.

3607. The authority may be to the authority to sell or exchange or buy may be delegated for a one year period, and then it says to a treasurer who who, in in your case, is usually the finance director, who shall thereafter assume full responsibility for transactions, and here it is, and shall make a monthly report of those transactions. That's the only requirement from a reporting standpoint that the law has. And the word shall is a very strict word as you're all aware.

This is very helpful. The vice mayor has just pointed out the investment policy that the city we we just did a review at our last meeting with you has the word shall in the some of the compliance elements. So I guess the city's adopted a more stringent reporting requirement than we had realized the law may be imposed, or at least I personally had realized. But that very good to know. In the context of how much more detail we want around that sentence, it's, maybe city staff will come back with some more amplification or not depending on what they determine is appropriate.

Thank you very much. Anything any other comments from any of us? This has all been very helpful. Even though we've read this for ten years or or more, it's Always learn something more. Anything else that we're we'll just proceed to accept this then, which is our Christina and Jonathan, we need a vote because this has got a forty five day or usually when we say accept, I accept as as chair.

I I don't think there's actual action needed.

Perfect. Well, then we're open. We are cue by duly accepted the report. Much appreciate everybody's participation, and thanks, Carlos, for coming.

Very welcome. Take care, you guys.

Bye bye. Bye. Okay. So I think that was our main purpose here. There are other items on the agenda, but the the committee meeting at upcoming meetings and events, there's a mayor commissioner meeting that I'm planning to get to on May 21, but I'm still waiting for what what exactly I'm gonna report on. So there's a format that, I guess, maybe is it Serena that's helping form form that meeting?

Sabrina, and I think Lauren may have been help coordinating.

So possibly if it because I missed the March 19 meeting, I don't actually have something that shows whatever the current format is. I've got something from last year, so maybe you could make sure Work together. I get it. I guess it's ten days away. I hate to since I missed the last one,

I know.

Delinquented reporting on this one.

Yeah. Maybe we can also catch up. There's we'll be going to counsel on the investment policy, and I believe it's counts what was approved last time for the May 2020. Correct? Yeah. Yes. That meeting. So I believe it's been council's direction to have the the chair attend those meetings where something that's sent from from the committee or from the commission to them for

Well, I'm glad we're talking about this. This so what exactly is it that when when we do something that's a vote? Sometimes we just do it we used to vote on a lot more things in the past, and now I'm still a little confused. So we do forward many things to the city council, but we don't always Well, if

it's if it's an action item such as the policy that fits the desire of the city council to have the the chair in attendance. Ah,

okay. Well, I'm glad you mentioned that. So I will put put it out in the book. We'll take it. Now this is important. And May 20 is what it's scheduled. And if if city staff can help us remember which which ones are actually subject to these attendance issues, that would be very helpful. So we wouldn't wanna inadvertently not attend, which I would not have done if you hadn't just brought it up. So thank you. Okay. Anything else? Let's see. We're done. There's no public staff. We are

Sir, did you wanna add something?

Please.

Yeah. A new feature agenda setting item here. Yeah. Sure.

If we have one, let's cover it.

I I'm not sure. So I when I was looking at the investment policy about the 45 days, there was a reference to 05/2007, and this was something I had kind of dropped the ball on. And and then and I think the investment policy probably should have addressed this language a little more clearly, but it's the it's the delegation of investment, the authority That the policy sort of says it, but it doesn't just, like, really pin it down that it says subject to review, the legislative body may renew the delegation of authority pursuant to this section each year. And then in in the past, this the council would renew it by resolution and that this the investment policy sort of mentions it, but not super clearly. So I don't know because it's already this has already passed through the audit committee.

It's on its way to the council. I don't know how to

If we were we can certainly revisit it unless we were to have another special meeting before it goes to council because the current investment policy is set to expire June 30. So we would have another special meeting, a special yeah, that audit committee meeting in order to discuss this. We can push this through. And then if you wanna have a further discussion or put in a a future agenda to have that discussion, we can certainly do so.

I wanna say, city, we strengthen the policy is passed via resolution by council. And in the reso, I believe the city attorney kind of strengthened up the language. I remember that was either in the policy or within the res where it was kind of more solidified. We can try to

Yeah. We can look for the the resolution, but I do remember last year, there was some language change. I mean, it I can look into it, and I can get back to you on that.

So in terms of maybe when we have more information, we can figure out whether we'd put it on a future agenda. Perfect. I I wasn't aware of those resolution. Nice to do. We gotta be careful. So very good. Okay. Any other future agenda item? No. I think we're set. Alright. We are now adjourned. Thanks, everybody.