2001 09 25 CC Minutes LA QUINTA CITY COUNCIL
MINUTES OF A SPECIAL MEETING
HELD JOINTLY WITH
THE PLANNING COMMISSION
THE ARCHITECTURAL AND LANDSCAPING REVIEW COMMITTEE
THE COMMUNITY SERVICES COMMISSION
THE CULTURAL ARTS COMMISSION
THE HISTORIC PRESERVATION COMMISSION
AND
THE INVESTMENT ADVISORY BOARD
SEPTEMBER 25, 2001
A special joint meeting of the La Quinta City Council, Planning Commission,
Architectural and Landscaping Review Committee, Community Services Commission,
Cultural Arts Commission, Historic Preservation Commission, and the Investment
Advisory Board was called to order at 5:10 p.m. by Mayor John Pe~a.
I. CITY COUNCIL ROLL CALL
PRESENT: Council Members Adolph, Henderson, Perkins, Sniff, Mayor Pe~a
ABSENT: None
PLANNING COMMISSION ROLL CALL:
PRESENT: Commissioners Butler, Kirk, Robbins, Tyler, Chairman Abels
ABSENT: None
ARCHITECTURAL AND LANDSCAPING COMMITTEE ROLL CALL:
PRESENT: Committee Members Bobbitt, Cunningham
ABSENT: None
II. PLEDGE OF ALLEGIANCE
Mayor Pe~a led the audience in the pledge of allegiance.
PUBLIC COMMENT- None
CONFIRMATION OF THE AGENDA - There were no changes or additions.
La Quinta City Council
Special Meeting- September 25, 2001
Page 2
STUDY SESSION
1. DISCUSSION OF MATTERS OF JOINT INTEREST TO THE MEMBERS OF THE
CITY COUNCIL, PLANNING COMMISSION, AND ARCHITECTURAL AND
LANDSCAPING REVIEW COMMITTEE.
Mayor Pe~a suggested the meeting be conducted in an informal manner with
both the Planning Commissioners and City Council Members feeling free to ask
questions and bring up concerns. He suggested the Planning Commission start
the discussion.
Commissioner Tyler stated he understood Southwest Community Church is
looking for a site to construct an upscale, assisted-living project. Community
Development Director Jerry Herman advised the church group has been looking
at sites in La Quinta.
Council Member Sniff asked Director Herman to bring the Council and
Commission up to date on projects in progress. Director Herman reported the
following:
· The Embassy Suites project will begin with 144 casitas north and south
of the hotel site - the hotel is expected to be started in January 2002;
· Tim Bartlett has applied for a Supermarket at the southeast corner of
Avenue 52 and Jefferson Street and would like approval to temporarily
locate a bank in the small house on the site;
· Chez Monique is being converted from a bar to a restaurant with parking
in the rear and at the side of the building;
· Palmer's restaurant is in plan check; and
· A small office building (Zeke Coronel) in the Village is in plan check.
In response to Chairman Abels, Public Works Director Chris Vogt explained the
La Quinta Court project has progressed slowly due to the number of changes
requested by CalTrans. He reported it has been difficult getting approvals from
CalTrans on the street improvements and the location of traffic signal controllers
at Washington Street and Highway 111. He stated these issues must be
resolved before the center can be completed.
Council Member Henderson noted the project was scheduled to be completed
in three phases and the road work is in the third phase. She asked how long it
will take for construction to get underway once approvals are received and if
the construction will coordinate with the City's improvements on the rest of
La Quinta City Council
Special Meeting - September 25, 2001
Page 3
Washington Street. Director Vogt responded he does not know at this time, but
the Washington/Highway 111 improvements will take 60 to 90 days from start
to completion.
Council Member Sniff commented on the difficulty of moving projects along
when so many agencies are involved.
Commissioner Tyler spoke regarding the "swampy" situation at Washington
Street just south of Simon Drive.
Mayor Pe~a noted during recent considerations of zoning amendments the
Council addressed the three-car garage problem that had been plaguing the
Planning Commission.
Director Herman reported the City has received submittals for a new retail
building at Point Happy and an Alzheimer Convalescent Center called "The
Point" at the old Point Happy Ranch. In response to Council Member Adolph,
Planning Manager Christi Di Iorio said the convalescent center is being
developed by the owner of the Point Happy Ranch.
In response to comments regarding status of the theater, Council Member Sniff
stated he understood the developer expects to be underway in October.
Mayor Pe~a advised a speaker at the recent Coachella Valley Economic
Partnership meeting seemed to think the economic outlook for the valley is still
very positive due to the Valley's close proximity to Los Angeles and other large
centers of population.
Chairman Abels stated he heard there have been 7,500 room cancellations at
the La Quinta Resort since September 11th.
Mayor Pe~a agreed the September numbers are going to be bad but expects a
definite up-turn.
Council Member Henderson reported she understood three local resorts are
booked solid for the weekend and noted the Convention and Visitors Authority
is saying the Valley resorts may be charging too much compared to other
locations like Las Vegas.
Council Member Sniff noted decreased gas prices have helped draw travelers
in the 50 to l00-mile radius of the valley and stated he felt the resort/hotel
La Quinta City Council
Special Meeting - September 25, 2001
Page 4
industry will make a quick recovery. Commissioner Robbins noted airlines are
also offering very competitive fares to encourage air travel.
Committee Member Cunningham remarked that Valley traffic has not decreased
and retail sales haven't dropped since the recent tragedy in New York and
Washington D.C. He believed the Valley housing market is in better shape than
heavily-populated areas like Los Angeles and Orange County because of
relatively reasonable prices.
Commissioner Robbins stated he felt the short-term result will be people driving
to closer resort/recreation destinations rather than flying to long distance
locations.
Council Member Henderson suggested three items for discussion: berm heights,
lighting standards, and strip malls. She felt a general understanding of what a
strip mall is would be helpful.
Council Member Sniff said he understood staff would be coming back to Council
with code amendments on the berm issue and he asked for an update on
commercial activity along Jefferson Street.
Director Herman advised an Albertson's food market at Jefferson Street and
Avenue 50 was recently approved by the Planning Commission. Additionally,
Longs Drugs is looking at that location and Trader Joe's is looking for a site in
La Quinta.
Council Member Sniff commented on the need for the Planning Commission and
City Council to be in agreement on the definition of "good commercial
development." He felt commercial development is the City's future and that
Highway 111, the Village, and Jefferson Street are the City's major areas for
commercial development. He also wished to see support for more diverse hotel
development.
Mayor Pe~a spoke regarding the need for industrial development in the City. He
also felt there's a need to once again address the issue of parking
recreational/commercial vehicles in residential areas.
Chairman Abels said he felt the property behind the Auto Mall would be good
for industrial use.
La Quinta City Council
Special Meeting - September 25, 2001
Page 5
Council Member Adolph spoke regarding the City's need for industrial uses that
provide professional and technical employment opportunities with above
minimum pay scales.
Mayor Pe~a noted the issues of local water usage and residential water waste
surfaced at the General Plan Public Hearing.
Commissioner Robbins commented on the number of sprinklers in landscape
areas, including City maintenance areas, that are left unrepaired for several
days.
Chairman Abels mentioned "water cops" have been used in Northern California
to cite people for over-watering, broken sprinklers, etc. He felt there's a need
to educate residents on water usage.
Council Member Perkins spoke regarding the responsibility of City workers to
report broken sprinklers. Chairman Abels suggested City vehicles carry tape
recorders for recording such problems and the tapes turned in at City Hall.
City Manager Genovese advised all City vehicles have radios but only 8 to 10
workers drive the streets on a daily basis. He suggested putting an article in
The Gem to ask residents to help in reporting such problems.
Mayor Pe~a recommended putting something on the City's web site as well so
people can report the problems there.
Commissioner Robbins mentioned the problem of not having code enforcement
on weekends to address violations such as construction work on Sundays.
Council Member Henderson pointed out the City has a 24-hour telephone
service that can be used to report violations and followed up on Monday
morning. Mayor Pe~a noted the Animal Control Officers work weekends and
can address some of the violations.
Council Member Henderson asked if the ALRC had addressed landscaping
changes to the zoning code, to which Committee Member Bobbitt responded
not yet.
Committee Member Bobbitt suggested utilizing homeowners associations to get
the word out to residents about over-watering and reporting broken sprinklers.
La Quinta City Council
Special Meeting - September 25, 2001
Page 6
Commissioner Robbins suggested listing specific numbers on the web site for
reporting complaints but added he felt some people are uncomfortable reporting
infractions by their neighbors and would prefer leaving a message on the web
page.
Commissioner Kirk suggested reducing turf in parkways to address the water
spillage problem. Council Member Sniff noted the City has addressed that
through the planting of desert landscape.
Council Member Henderson said some developers feel we will lose some of the
market by moving away from lush landscaping. Mayor Pe~a noted Phoenix has
done a very attractive job with desert scape in their medians.
Committee Member Cunningham stated he felt some of the Valley's native
desert landscape material is ugly such as the creosote bush. He also spoke
regarding the need for developers to utilize their landscape architects to verify
the finished planting and irrigation is according to plan. He commented that the
industry is starting to have landscape architects work with someone versed in
horticulture to inspect the planting and plant materials.
Commissioner Robbins stated he felt it's the City's responsibility to look at the
long-term effectiveness of landscaping.
Committee Member Bobbitt agreed and said cities in Orange County all have
landscape and horticulture inspectors who know what is called for in the
landscaping plans and make sure they are properly planted and the plant
material is what was approved.
Commissioner Robbins remarked CVWD inspects the landscape plans but
there's no system to verify the finished landscaping is according to the plan or
that it's working according to design after a few years.
Council Member Sniff noted there are differing types of soil in the City; some
absorb water and some cause the water to run off.
Council Member Henderson expressed appreciation for the ALRC's efforts and
attention, as well as the way they function with the Planning Commission.
Council Member Sniff encouraged the Commission Members to submit their
written comments relative to the General Plan by the October 5t' deadline. He
La Quinta City Council
Special Meeting - September 25, 2001
Page 7
also suggested separate public hearings for the Planning Commission and the
City Council.
Commissioner Kirk stated he felt the Planning Commission's perspective on land
use is different from the Council's because the Planning Commission does not
take the financial aspects of a project, such as generation of Transient
Occupancy Tax (TOT), into account when making a recommendation. He
supports having a large planning area and aggressive changes to the circulation
patterns.
Council Member Sniff said he felt a large planning area is necessary as well as
a sphere of influence with annexations under that umbrella and a core area.
Chairman Abels recessed the Planning Commission to a regular meeting to be
held at 7:00 p.m.
..... IV. 6:15 P.M. - Meetin_~ Jointly with the Community Services Commission
ROLL CALL:
PRESENT' Commissioners Davis (arrived at 6'45), Boudreau, Rebich,
Chairperson St. Johns
ABSENT: Commissioner Bechard
I. DISCUSSION OF MATTERS OF JOINT INTEREST TO THE MEMBERS OF THE
CITY COUNCIL AND THE COMMUNITY SERVICES COMMISSION.
Mayor Pe~a called the joint meeting with the Community Services Commission
to order at 6:25 p.m. He asked newly-appointed Commissioner Michelle
Boudreau to introduce herself to the Council Members who might not know her.
Commissioner Boudreau briefly outlined her previous background and present
activities.
In response to Council Member Sniff, Chairperson St. Johns outlined the new
format for the Youth Forum and stated the first Youth Forum this year will be
a luncheon held at the La Quinta High School. She advised the participants will
come from the Leadership Group. As for the Commission's participation on the
City's Anniversary Committee, they plan to alternate participation because the
commissioners work and it's diffie~lt tn ~tt~.nd d~v-tim~_ m~tJnn~
La Quinta City Council
Special Meeting - September 25, 2001
Page 8
Council Member Henderson commented alternating participation makes it
difficult because the beginning of each meeting is spent bringing people up to
date on the previous meetings. She stated the next meeting is November 5,
2001, at 10:00 a.m.
Commissioner Boudreau said she would attend the November 5~ meeting unless
Commissioner Davis wants to attend. She also advised the School Siting
Council has a new Director and is enthusiastic that they may now be able to
complete their work.
Council Member Adolph asked if the Commission would look into ways for the
Coachella Valley Recreation and Parks District (CVRPD) to extend the pool hours
at Fritz Burns Park, at least past Labor Day. He also suggested the Commission
work with CVRPD on the poor conditions of the Fritz Burns Park maintenance
and restroom facilities.
Mayor Pe~a noted the lighting at the new La Quinta Community Park may be a
challenge for the Commission to deal with in the upcoming year.
Council Member Henderson stated meetings with the School District on the high
school lighting have not reached any satisfaction but the City's lighting
consultant has made suggestions regarding positioning of the light shields that
should make a difference.
In response to Council Member Sniff, Director Horvitz stated the construction
drawings for the La Quinta Community Park are underway and that staff is
being very conservative on the lighting issue. Council Member Sniff encouraged
staff to expedite the project
Commissioner Rebich advised they will be meeting with the Planning
Commission once the plans and specifications are ready. Chairperson St. John
felt January 2002 is a reasonable estimate for starting construction.
Mayor Pe~a suggested the Commission also discuss joint use of facilities when
meeting with the School District.
Council Member Henderson thanked the Commission for supporting the Council
on the animal shelter issue and requested their input on the General Plan update.
She also asked that the Commissioners be provided copies of the new park
regulations recently adopted by the City.
La Quinta City Council
Special Meeting- September 25, 2001
Page 9
Mayor PeRa commented on the importance of communication between the City
Council and City Commissions.
Commissioner Davis arrived at 6:45 p.m.
Council Member Henderson suggested staff provide the Commission with copies
of the monthly department reports for Public Works and Community
Development. She also commented on the reality of a new fire station in the
northern part of the City and the importance of the Commission being aware the
Council is considering putting a special tax proposal on the March ballot in order
to increase the level of fire services in the City.
Commissioner Rebich asked about annexation efforts to the southeast. Mayor
PeRa explained some property owners in that area have asked the City to look
at potential annexation but no. annexation applications have been filed by the
City. He added the area has been included in the City's planning area as a
planning tool. Council Member Henderson noted some small areas within the
City's sphere of influence are being annexed.
Council Member Adolph observed that press reports about La Quinta's General
Plan and potential annexation areas have been greatly exaggerated.
Mayor Pe~a noted most of the City's development areas are coming in at a
lower density than projected for planning purposes.
Commissioner Davis asked if the September 1 l~h incident has created problems
for the City. Council Member Henderson responded the City is doing very well
financially and moving forward with the projects approved in the budget.
Chairperson St. John adjourned the Community Services Commission at 7:02
p.m. to their next regularly scheduled meeting.
V. 7'05 P.M. - Meeting Jointly with the Cultural Arts Commission
Mayor Pe~a called the meeting with the Cultural Arts Commission to order at
7'05 p.m. '
La Quinta City Council
Special Meeting - September 25, 2001
Page 10
1. DISCUSSION OF MATTERS OF JOINT INTEREST TO THE MEMBERS OF THE
CITY COUNCIL AND THE CULTURAL ARTS COMMISSION.
ROLL CALL:
PRESENT: Commissioners Diamond, Loudon, Reynolds, Baxley, Chairperson
Shamis
ABSENT: None
At the request of Mayor Pe~a, Commissioners Baxley and Loudon gave brief
introductions on their backgrounds.
Chairperson Shamis thanked the Council for having the joint meeting and stated
she felt it's important for the Commission to be involved at the beginning of
projects in order to include public art in the design. She then reviewed some of
the Commission's accomplishments over the past year and stated the
Commission is looking forward to presenting performing arts to the community,
such as the Riverside Philharmonic performing back-to-back with the fireworks
at the City's 20th anniversary.
Commissioner Diamond commented on the positive feedback received from last
year's symposium and expressed hope that the Council will support the three
events planned for this year. She stated the Commission's work plan has
identified various locations for temporary and permanent art and the
Commission would like to use their expertise in recommending placement of
three art pieces during the next year. She felt the prototypical street in the
Village is an example of how the Commission is left out of the loop during the
planning process.
Chairperson Shamis said she felt the Commission should be part of the entire
flow of the City and master plan for the Village.
Council Member Henderson stated Calle Estado was part of a total street
improvement project and noted the Commission has been in the forefront in the
planning process for the Civic Center .Campus.
Council Member Sniff voiced concern about overlapping roles. He suggested
the Commission consider suitable locations for temporary art but wasn't
comfortable with the Commission having a major role in designing projects. He
encouraged the Commissioners to provide input on projects at the City Council
meetings.
La Quinta City Council
Special Meeting - September 25, 2001
Page 11
Commissioner Diamond expressed disappointment about the Commission not
being involved with the fountains on Calle Estado.
Council Member Henderson stated she felt the fountains should have been
considered as artwork and funded from the APP Fund but it was funded as part
of street improvements because of the need to get the project completed.
Council Member Sniff asked if the Commissioners felt the fountains are not
artistic or attractive. Commissioner Diamond stated she believes something can
be very attractive but not necessarily artistic.
Commissioner Reynolds said she loves the look and feel of Calle Estado and has
no complaints. She showed a photo from Palm Springs Life and stated the
artist, John Kennedy, is willing to pay for installation and insurance for a
temporary art piece at the La Quinta Senior Center. She suggested a public
event to recognize the art placement and generosity of the artist.
Commissioner Loudon asked if funds are available for performing arts such as
puppet shows and other similar entertainment venues to be included at Citywide
events.
Council Member Henderson noted under the Commission's work plan the
Council has given support to explore such things and that the Council will then
decide whether or not they wish to allocate additional funding.
Mayor Pe~a noted the City will have an appropriate venue for such events once
the Civic Center Campus and/or La Quinta Arts Foundation are completed.
Commissioner Loudon reported their first fund-raiser will be held December 6TM
at the Ritz Carlton to benefit the Arts Alliance and she hoped the City Council
would attend.
Commissioner Baxley expressed appreciation for the Commission being able to
work with the City Council in providing a more meaningful quality of life in
La Quinta.
Council Member Sniff suggested the Commission designate three to five
appropriate locations for temporary art and consider the Senior Center as one
of the locations for multiple art pieces. He stated he views the program as
beina a chanaina kaleidnsnnn~, nf diff~.r~.nt ~rt ni~_r_~__~
La Quinta City Council
Special Meeting- September 25, 2001
Page 1 2
Commissioner Reynolds noted artists have a difficult time funding the insurance
and installation costs. She suggested placing a large temporary art piece in the
roundabout.
Council Member Henderson commented on the City's generous funding for the
arts which includes allocations to the La Quinta Arts Foundation, La Quinta On
Stage, and the La Quinta Arts Association. Additionally, this year the City has
budgeted $5,000 for Cultural Arts special events, $7,500 for the Civic Center
Art Purchase Program, $240,000 for Civic Center Campus artwork, $35,000
to enhance the "Gem" at Highway 111 and Washington Street, and is looking
at artistic railing enhancements for the bridges on Jefferson Street, Eisenhower
Drive, and Washington Street (north of Highway 111 ).
Chairperson Shamis spoke regarding the Commission's need to obtain hotel
rooms for the Symposium speakers.
Mayor Pe~a encouraged the Commissioners to attend the General Plan meetings
and to provide input on the General Plan Update process.
Chairperson Shamis adjourned the Cultural Arts Commission at 7'50 p.m. to
their next regularly scheduled meeting.
VI. 7:55 P.M. - Meetin_~ Jointly with the Historic Preservation Commission
ROLL CALL:
PRESENT: Commissioners: Irwin, Sharp, Puente
ABSENT: Commissioners: Mitchell, Chairperson Wright .
I. DISCUSSION OF MATTERS OF JOINT INTEREST TO THE MEMBERS OF THE
CITY COUNCIL AND THE HISTORIC PRESERVATION COMMISSION.
Mayor Pe~a announced Country Club of the Desert has acquired the "starter
shack" from the historic golf course at St. Andrews in Scotland and suggested
the Commission get involved with handling of this piece of history.
Council Member Perkins expressed appreciation for the Commission and stated
he is pleased with the progress on the La Quinta Historical Museum.
I 1,"1,
.
La Quinta City Council
Special Meeting - September 25, 2001
Page 1 3
Council Member Henderson concurred and spoke regarding the potential Historic
Preservation District.
Commissioner Irwin commented on the Commission's involvement with
archiving artifacts found in the area. She stated the artifacts are currently
stored in a portion of the project office trailer at Fritz Burns Park. They hope to
have full use of the trailer for storage once the contractor moves out until the
museum is completed. In response to Council Member Sniff she advised the
artifacts consist of animal bones, shards, clay pieces, etc.
In response to Council Member Henderson, Commissioner Irwin stated a number
of things can be learned from the bone artifacts such as IIrabbit drives" that
took place during Native American activity in the valley. She stated through
carbon dating, some of the finds date back 1 ,650 years. She reported the
Commission has been approached by the Coachella Valley Archeology Society
to accept materials from other valley communities but she felt the rules for such
a determination must be made by the City Council. She advised the artifacts
do not take up much room and noted the Fort Irwin curation facility houses a
20-year collection in one large room.
In response to Council Member Adolph, Planning Manager Christi di Iorio,
advised the City has a volunteer who is working to catalog the artifacts.
Council Member Sniff stated he felt there are people in the community who may
wish to place significant pieces of pottery in a suitable facility.
Council Member Henderson commented on a request at the General Plan
meeting for tribe representation on the Commission and asked if the Historical
Society has been successful in their attempts to communicate with the local
tribes. Commissioner Irwin responded the Agua Caliente have indicated some
interest because they lack a storage facility.
Council Member Sniff asked at what point an item becomes historical, to which
Planning Manager di Iorio responded 50 years.
In response to Council Member Sniff, Commissioner Irwin advised the artifacts
are collected by archeologists who then determine what should be kept before
passing them along to the Historical Society.
Commissioner Puente said she felt storage space is very important to house the
growing collection.
- n
I 1m!
La Quinta City Council
Special Meeting - September 25, 2001
Page 14
In response to Council Member Sniff, Commissioner Irwin advised most of the
artifacts come from new developments.
Commissioner Sharp said he is learning a great deal as a member of the
Commission and has a very special interest in the local Native American Tribes.
Council Member Sniff asked if there have been discoveries of other native tribes
in the La Quinta area. Commissioner Sharp responded the area was very quiet
and there was little activity to draw other native groups.
The Historical Preservation Commission was adjourned at 8'1 5 p.m. to their
next regularly scheduled meeting.
Council Member Adolph left the meeting at 8:1 5.
VII. 8'16 P.M. - Meetin_~ jointly with the Investment Advisory Board
ROLL CALL:
PRESENT: Board Members Lewis, Moulin, Olander, Chairman Osborne
ABSENT: Board Members Felice, Mahfoud, Mitchell
1. DISCUSSION OF MATTERS OF JOINT INTEREST TO THE MEMBERS OF THE
CITY COUNCIL AND THE INVESTMENT ADVISORY BOARD.
Mayor Pe~a opened the joint meeting by expressing appreciation for the
performance of the Investment Advisory Board.
Council Member Sniff asked how the recent financial crisis has affected the
City's investments.
Board Member Moulin stated there has been some effect and asked the City
Treasurer to make a report on the events since September 11, 2001.
Finance Director/City Treasurer John Falconer reported the City was about to
invest $5 million of commercial paper on September 11'~ when the tragedy
occurred but was unable to make the investments due to closure of the financial
institutions. He advised the City's access to funds was never in jeopardy
because LAIF was open the following day and he made the investments the
following week when things began to get back to normal.
La Quinta City Council
Special Meeting - September 25, 2001
Page 1 5
Council Member Sniff asked if there has been a significant loss of interest on
the City's investments, to which Finance Director Falconer responded they have
been plummeting. '
Council Member Sniff asked what the prognosis is for an upward turn in the
relatively near future. Board Member Olander said he felt a reduction in the
interest rate by the Federal Government will help and he was encouraged by the
Valley's strong economic outlook.
Board Member Moulin noted the flexibility built into the City's Investment Policy
allowed alternative means for the City to retain liquidity. He felt the importance
of continuing with LAIF was also supported because they were the only
financial window open for a while.
Board Member Olander noted the program set up by the Board several months
ago to address financial emergencies worked very well during the recent
disaster.
Council Member Perkins spoke about his concerns with LAIF investments but
stated he feels the Investment Policy is well designed and he has no concerns
with it.
Council Member Henderson questioned that a LAIF percentage policy of up to
15% instead of 20% would have made any difference in the City's liquidity.
She also noted the reason she voted against the Investment Policy this year was
because she didn't support a LAIF percentage of 20% and her request for that
issue to be pulled for separate vote was not honored.
Mayor Pe~a stated he supported the increase in LAIF and was pleased it was
readily available had there been a need for it.
Council Member Henderson asked the Board to reconsider their position on
reducing their membership to five members and noted the other City
Commissions have been reduced to five members. Board Member Lewis
remarked the original Board was a five-member body.
Council Member Sniff stated he felt there's value in diversity and didn't see a
problem maintaining seven members on the Board. He also voiced his support
for the LAIF investment of up to 20%
La Quinta City Council
Special Meeting - September 25, 2001
Page 1 6
Mayor Pe~a asked if any "red flags" came out of the recent, situation that the
Board feels should be addressed in the Investment Policy. Board Member
Olander noted there could have been a liquidity problem had the City's
investments been 100% in U. S. Treasuries.
Board Member Moulin noted U.S. Treasuries are the only investment backed by
the full force and faith of the U.S. Government. He further noted LAIF provides
the best yield and is the only investment source that allows deposits and
withdrawals in the same day. His only small concern with LAIF is their
investments in GSE's.
Board Member Olander agreed and said the GSE's are not supervised by the
Securities Exchange Commission.
Council Member Sniff complimented and thanked the City Manager and City
Treasurer for doing a good job keeping the City fiscally sound.
Council Member Perkins addressed the size of the Board and stated it has been
his experience that a five-member Board works best. His concern with LAIF is
that it's a political organization and he fears the State Government could raid
its funds as it did with PERS.
Chairman Osborne assured the Council that the Board keeps a close watch on
LAIF every month and that at least two Board Members attend the LAIF
meetings at the State Treasurers Conference.
Board Member Olander complimented Finance Director Falconer on the City's
financial audits and said they are the cleanest audits he has ever seen.
.,
Finance Director Falconer referred to three items he 'would like to discuss with
the Board at the next Board meeting: increasing the fund transfer amount with
Wells Fargo; listing three people at the brokerage firms so at least two people
are available in the event of vacations or illness; and the addition of another
staff person in the "check and balance" process for wire transfers.
Council Member Henderson remarked that the bond investors in New York were
favorably impressed with the City's Investment Policy and the percentage
limitation on investments in LAIF.
La Quinta City Council
Special Meeting - September 25, 2001
Page 17
It was moved by Board Members Lewis/Moulin to adjourn at 9:04 p.m. to the
next regularly scheduled meeting of the Investment Advisory Board. The motion
carried.
It was moved by Council Members Perkins/Sniff to adjourn the City Council
meeting to the next regularly scheduled meeting. The motion carried and the
meeting was adjourned at 9'06 p.m.
Respectfully submitted,
June S. Greek, City Clerk
City of La Quinta, California