HomeMy WebLinkAboutMINUTES - 01151985 - 1.42 A/ �--
-so:- . � BOARD OF SUPERVISORS }
FROM: Phil Batchelor, County Administrator COYItt'a
Costa
DATE: January 15, 1985 County
SUBJECT: Investment of County Retirement Funds
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1. Withhold issuing instructions to the Contra Costa County Retirement
Board relating to investment practices and investment portfolio.
2. Indicate intent to consider sensitivity to social issues, as well as
financial knowledge, when making public member appointments to the
Retirement Board.
3. Adopt policy statement indicating opposition to South Africa policy
of apartheid.
BACKGROUND
On October 30, 1984 your Board referred to the County Administrator and
Retirement Board the issue of a reexamination of the retirement system
investments in South Africa; this matter was referred as a result of a
news article submitted by Supervisor Tom Torlakson. As a result of our
review of this matter, we find the following:
1. The Retirement Board is charged with management of the retirement
system pursuant to provisions of the California Government Code,
especially Section 31520.
2. The 1984 Audit Report on the County Retirement System indicates that
the gross assets of the system on December 31 , 1983 were $386,110, 689,
of which $238 , 616,812 was invested in bonds, $90,950, 853 in stocks,
and the remainder largely in short-term investments, $24 ,874, 903 ,
and real estate. Of the $90,950,853 stock portfolio, $44 , 900 , 000 was
invested in mutual funds.
3. The Retirement Board employs professional investment counsel to provide
advice, and make decisions on investments, on its behalf. In this
manner Retirement Board members discharge their fiduciary responsibility
for management of the assets of the retirement system.
4. The Retirement Board at its December meeting discussed this matter
especially on the issue of whether social values and concerns such as
the ownership of equities of companies with investments in South
Africa are appropriately considered in Retirement Board investment
decisions. The Retirement Board concluded thatt existing polic ' s
/v
CON TI D ON ATTACHMENT: YES SIGNATURE: '
00
COMMENDATION OF COUNTY ADMINISTRATOR`-. RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
(�
SIGNATURE(S)
ACTION OF BOARD ON ua y APPROVED AS RECOMMENDED OTHER XX
REFERRED said report to the Internal Operations Committee (Supervisors
Torlakson and Powers ) for review on January 28, 1965.
VOTE OF SUPERVISORS
XxUNANIMOUS (ABSENT --- ) I HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
cc : Internal Operation Cte. 19b5
County Administrator ATTESTED January 15,
Retirement Board PHIL BATCHELOR, CLERK OF THE BOARD OF
County Counsel SUPERVISORS AND COUNTY ADMINISTRATOR
Auditor-Controller
M382/7-83 BY �'�'E ` J �� DEPUTY
-2-
should continue to apply in its investment decisions. However,
it did express its opposition to apartheid and voted to
affirmatively vote its stock proxies of companies doing
business in South Africa to demonstrate that opposition.
5. Your Board' s responsibility with respect to the retirement
system is primarily through appointment of the four public
members of this nine member Board. Once appointed the public
and other members - the Treasurer-Tax Collector and represent-
atives of the employees and retirees - are vested with respon-
sibility for the management of the system including investment
of the assets of the system.
Inasmuch as investment of retirement funds is within the jurisdiction
of the Retirement Board, consideration of this matter properly belongs
to that Board.
The apartheid policy of the government of South Africa is not in keeping
with the concern for human services and rights consistently shown by
the Board. This concern could be reiterated indicating your intent to
consider sensitivity to social issues, as well as financial knowledge,
when making public member appointments to the Retirement Board.
Additionally, you could, i•f you so desire, adopt a statement of policy
in opposition to the apartheid policy of the government of South Africa.
A draft of such a policy is attached should you wish to take this action.
Orig: County Administrator
cc: Retirement Board
County Counsel
Auditor-Controller