Commission begins rewrite of investment policy, asks staff for clean draft and questions

Commissioners discussed a comprehensive update to the City of South Pasadena's investment policy and asked staff to circulate an unmarked, clean draft and a short list of decision questions ahead of the next meeting.

Janet, who volunteered to draft changes, said she used the California Municipal Treasurers Association/state template and compared other city policies to standardize format and language. She inserted an ESG paragraph that would allow prioritization of environmental, social and governance factors but did not propose an absolute fossil‑fuel exclusion.

Commissioners flagged several substantive points for discussion: whether to keep an existing 30% cap on a single allowable asset class, whether to add a 5% cap on any single issuer, and how to treat corporate sectors such as energy that can provide incremental yield. Zen, the city treasurer, said staff will adhere to the California guideline buckets and that any narrower limits would be a policy choice for the commission and council.

Public comment emphasized the constraints of the California government code and urged caution; speakers praised staff for catching up on reporting and reconciliations following prior internal‑control problems and said the state code already limits risky investments.

Commissioners agreed to receive a clean version of the proposed policy and a one‑page list of questions to consider before making a formal recommendation. The commission also asked that the new city manager be given an opportunity to review the draft before the commission forwards a recommendation to council.