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1993 09 08 IAB Minutes INVESTMENT ADVISORY BOARD MINUTES September 8, 1993 The regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 5:30 P.M. by Chairman Lewis, followed by the Pledge of Allegiance. PRESENT: Board Members Brown, Gilreath, Sales and Chairman Lewis ABSENT: Board Member Wilson OTHERS PRESENT: Thomas J. O'Reilly, Finance Director and Debbie DeRenard, Secretary. I PUBLIC COMMENT - None II WRITTEN CORRESPONDENCE A. LETTER FROM MAYOR JOHN PENA REQUESTING INPUT REGARDING THE CONTENTS TO BE PLACED IN THE CITY OF LA QUINTA TIME CAPSULE. Mr. O'Reilly advised that if any of the Board Members had suggestions for the Time Capsule, they could be submitted to him or directly to the City Council. The deadline is September 17th, 1993. Board Member Sales suggested a current copy of the Board Multiple Listings Book. Board Member Brown advised that if the City Council approved the Board Multiple Listings Book, she would supply it. Board Member Gilreath'advised that La Quinta's origin should be. included. III CONSENT CALENDAR A. APPROVAL OF MINUTES FROM THE MEETING OF JULY 23, 1993. MOTION - It was moved by Board Members Gilreath/Sales to approve the Minutes of the July 23, 1993 Investment Advisory Board as submitted. Motion carried Unanimously. Investment Advisory Board 2 September 8, 1993 Minutes IV BUSINESS SESSION A. TRANSMITTAL OF TREASURER'S REPORT DATED JUNE 30, 1993. Mr. O'Reilly advised that the June and July Treasurers Reports are before the Investment Advisory Board for their motion to receive and file. The July Treasurers Report has not yet been approved by the City Council. In response to Board Member Sales, Mr. O'Reilly 'advised that the concerns the City Council had in regards to why they formed the Investment Advisory Board was to have the Board review the investments for validity. Chairman Lewis advised that his understanding of why the Board was formed was to review the investments for forgeries and review of the checking accounts. Mr. O'Reilly distributed the Daily Cash Receipt form to the Board. He advised that he receives the form on a daily basis. It lists the checking, savings and the LAIF accounts for both the City and RDA accounts. The form is used as a guide when transferring money. Mr. O'Reilly advised that the City would like to go out to bid for banking service proposals in November or December. Board Member Brown recommended the City make an effort to do business with firms that are located in the Coachella Valley. In response to Board Member Sales, Mr. O'Reilly advised that the June's Treasurers Report did not match the final General Ledger due to year end closing journal entries that were completed after the Treasurers Report was printed. The entries' will show on the July Treasurers Report. Mr. O'Reilly advised that the July Bank Reconciliation is not completed, and the auditors are finishing up the closing entries. In response to Board Member Sales, Mr. O'Reilly advised that the July Treasurers Report is stamped "draft only" and further advised that the Investment Advisory Board cannot be held responsible for the unbalance report. Investment Advisory Board 3 September 8, 1993 Minutes Board Member Sales recommended the Board going to the Council and question their duties. Mr. O'Reilly advised that the Board could ask the Council for clarification on specific areas that they would prefer the Investment Advisory Board review. MOTION - It was moved by Board Members Sales/Brown to request advice from the City Council as what they feel the responsibility of the Investment Advisory Board is with respect to reviewing investment documentation. Motion carried unanimously. MOTION - It was moved by Board Members Brown/Gilreath to receive and file the Treasurers Report for the month of June. Motion carried unanimously. B. TRANSMITTAL OF DRAFT TREASURERS REPORT DATED JULY 31, 1993. It was the unanimous decision of the Board Members to wait for a final Treasurers Report before approving. C. CONSIDERATION OF APPROVAL TO INVEST BOND RESERVE FUNDS, AS APPROVED BY BOND TRUSTEES, WITH L.A.I.F. Mr. O'Reilly reviewed the reserve bond funds at July 3.0, 1993 for the City, Redevelopment Agency, and Financing Authority and indicated that the reports will be going to Council for approval. Board Member Brown advised that she perceives one of the functions of the Board is to research all different types of investments and then make the recommendations, L.A.I.F. being one of them, to the City Council. She further advised that it would be wise for the Board to make a recommendation to move to L.A.I.F as soon as possible. In response to the Board, Mr. O'Reilly advised that he sees no reason in the near future to need the reserve money that is to be possibly invested in LAIF. MOTION - It was moved by Board Member Brown/Sales to approve the investment of bond reserve funds to L.A.I.F., with approval of the bond trustees. Motion carried unanimously. Investment Advisory Board 4 September 8, 1993 Minutes MOTION - It was moved by Board Member Brown/Gilreath to thoroughly investigate other investment opportunities for Board acceptance and make recommendations to the City Council for long term investments. Motion carried unanimously. V. STUDY SESSION - None VI. OTHER - A. STAFF INFORMATION REPORTS. 1. LEVENTHALL REPORT Mr. O'Reilly advised that this information was requested by the Board at the July 23, 1993 meeting. Mr. O'Reilly further advised that this report was requested by the City Council after the Wymer incident happened. Board Member Brown advised that the reports states that a .formalized written policy and procedure should be created. In response to Board Member Brown, Mr. O'Retlly advised that formalized written policies and procedures have been created. The Investment Policy was created and has been amended since the Wymer findings. There have always been policies on who is authorized to sign checks and transfer funds. 2. L.A.I.F. INVESTMENT REPORT Mr. O'Reilly advised that this information was requested by the Board at the meeting of July 23, 1993 meeting. Noted and filed by Board Members. VII. ADJOURNMENT MOTION - It was moved by Board Members Brown/Gilreath to adjourn the meeting. Motion carried unanimously.