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RESOLUTION NO. 1378
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF THE
TOWN OF LOS ALTOS HILLS URGING THE CALIFORNIA PUBLIC
EMPLOYEES' RETIREMENT SYSTEM TO INCREASE ITS RATE OF
RETURN ON INVESTMENTS
RESOLVED, by the City Council of the City of the Town of Los
Altos Hills , County of Santa Clara, State of California, that
WHEREAS, cities in California have urged the California Public
Employees' Retirement System (PERS) Board of Administration to
review its investment policies in order to maximize the rate of
return and to change its investment policies to take advantage of
short term investment opportunities, such as Federal Treasury Bills
which are guaranteed by the Federal Government; and
WHEREAS, PERS has a 12 . 85 billion dollar investment portfolio
on which PERS has failed to capitalize on the investment opportunities
presented by short term investment vehicles currently paying high
interest rates; and
WHEREAS, adoption of a flexible and aggressive investment policy
by PERS would be mutually advantageous to public agencies who make
employer contributions and their employees who make employee contri-
butions to PERS,
NOW, THEREFORE, IT IS HEREBY ORDERED as follows:
1. The League of California Cities is hereby requested to do
the following:
a. To take appropriate action to influence the PERS
Board of Administration to change its investment
strategy in order that a significantly higher
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percentage of new revenue could be placed in per-
formance investment vehicles with high yield when
market conditions so justify in order to maximize
earnings from investments .
b. To take appropriate action to influence the PERS
Board of Administration to examine the maturity
period when purchasing new, long term bonds to deter-
mine whether they should be shortened.
c. To aggressively oppose passage of Senate Con-
stitutional Amendment 21, or any similar legislation
which would increase the existing twenty-five percent
PERS portfolio ceiling on PERS stock market invest-
ments, which investments have notprovided a satis-
factory rate of return over the eleven year period
ending June 30 , 1979 .
d. To sponsor legislation which would extend mem-
bership of the PERS Board of Administration and the
PERS investment committee to insure representation
of public agency employers who are PERS members and
that such additional positions be filled by appoint-
ment of the president of the League of California
Cities .
e. To inform fully public employee labor organiza-
tions and other interested organizations and
committees concerning the importance of this issue
and legislation related thereto and to seek their
support.
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d
f. To give support to the Investment Practices
Sub-committee of the Finance, Insurance and
Commerce Committee, Assemblyman Louis J. Papan' s
Assembly Committee, which is conducting an inves-
tigation of the investment policies of PERS in
order to insure that PERS maximizes its rate of
return from investments .
g. To encourage PERS member cities, member
counties and individual members and public
agency employer organizations to write letters
to the PERS Board of Administration to personally
appear before the Board to demonstrate why public
agency and employee organizations support
a full review of and change,e appropriate, of
as
current investment policy.
2 . That certified copies of the within Resolution be forwarded
to the League of California Cities , Assemblyman Papan and members of
the Finance, Insurance and Commerce Committee of the State Assembly,
and to the PERS Board of Administration.
REGULARLY passed and adopted this 19th day of August, 1981.
By
Mayor
ATTEST:
ity Clerk
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