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1994 02 09 IAB Minutes INVESTMENT ADVISORY BOARD MINUTES FEBRUARY 9, 1994 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: Jim Woods, Interim Finance Director and Debbie DeRenard, Secretary I. PUBLIC COMMENT - None II. CONSENT CALENDAR A. APPROVAL OF MINUTES FROM THE MEETING OF JANUARY 12, 1994. MOTION - It was moved by Board Members Gilreath/Sales to approve the minutes of January 12, 1994 as submitted. Motion carried unanimously. III. BUSINESS SESSION A. TRANSMITTAL OF TREASURER'S REPORT DATED DECEMBER 31, 1994. MOTION - It was moved by Board Members Brown/Gilreath to accept and file the Treasurers Report dated December 31, 1994. Motion carried unanimously. B. CONSIDERATION AND DISCUSSION OF INVESTMENT ADVISORY BOARD REPRESENTATIVE TO ATTEND CITY COUNCIL MEETING AND PRESENT INVESTMENT-ADVISORY BOARD'S CONCERNS/QUESTIONS ABOUT A CITY COUNCIL LIAISON AND A SPECIFIC TASK OUTLINE. Chairman Lewis requested that each Board Member read their view of the Mission of the Investment Advisory Board. Investment Advisory Board 2 February 9, 1994 Minutes Board Member Brown - It is necessary to identify a written outline/task enumeration from Council in order to clarify the purpose and function of the Investment Advisory Board. This need was identified early by Board Member Wilson as he questioned the .need to spend significant Board time with the Treasurers report each month. If, in fact, our function is to thoroughly review these reports and statements should our board be concerned with issues such as methods or reporting/approving including internal policy recommendations? More importantly, it is necessary to develop contact with the Council Members on a regular basis. Through this exposure and communication questions, directions and requests can be promptly addressed. This can be accomplished by a representative from Council attending regular Board meetings either as a permanent or rotating assignment. Further, it may be necessary for the Board to reorganize the date/time of meetings in order to accomplish this goal and accommodate Council. Finally, staff should be commended for their constant assistance through these first several meetings of the Investment Advisory Board development. Board Member Sales - The City of La Quinta Investment Advisory Board was created by an Ordinance for the purpose of strengthening the internal controls for safeguarding cash and investment owned or controlled by the City. Ordinance No. 222 added Chapter 2.70 of the Municipal Code which sets forth the functions of the Board. Investment Advisory Board 3 February 9, 1994 Minutes 1) Review account statements and verifications to ensure accurate reporting. 2) Monitor compliance with existing policy and procedure. 3) Review and make recommendations concerning investment policy and procedures, investment contracts, and investment consultants. The mission of this initial Board should be to establish specific guidelines to accomplish the functions set forth in the ordinance. Such specific guidelines could include. Under 1) A. Request Staff that account statements be in such form and content to be readily understood by all members of the Board. B. Sufficient back-up detail be provided to ensure accuracy. Again, staff recommend the detail C. Require a report from someone other than the preparer, that such reports are independently verified. Under 2) A. Request from Staff details of current policies and procedures. Under 3) Establish some method to determine when an investment is contemplated and or actually made. Devise a standard method of reporting to the City Council in accordance with the ordinance. Board Member Gilreath - I believe that the primary purpose of the Investment Advisory Board is to act as a "watchdog", therefore preventing any recurrence of the Wymer debacle. I also believe that there are instances in which this Board could act as an investigative body thereby relieving the Council Members to pursue more important problems. As an example of this possibility: In the minutes of the Council Meeting of January 18th, 1994, there was a request made for financial assistance from Coachella Valley Youth, Inc. Council Member McCartney wished to have more detail with regards to the use of which such money would be put, etc. A Member of this Board could easily undertake such a project. Investment Advisory Board 4 February 9, 1994 Minutes Board Member Brown stated that this Board has been in place for several months and has not received the actual directive of responsibilities. If it means setting internal policy or getting involved with how things are reported then this should be determined. Chairman Lewis agreed that this Board needs clarification of functions of the Board. Whether this Board gives a report with recommendations to the City Council or the Board gives the City Council a checklist of responsibilities and request there input on each. Board Member Sales advised that the Board should have a template of how reports should be prepared. The Board concurred on having the City Attorney present at the next meeting. Jim Woods, Interim Finance Director advised that he has a procedures manual that is out of date. He further advised that the Investment Advisory Board has suggested that they become involved in each and every investment. He questioned if the Board would be available at a moments notice to come in and make decisions. He advised that the Board may want to limit their activities in this area and set policies and guidelines that would have to be approved by the City Council. The City has regulations that must be followed. Setting investment guidelines and obtaining regular reports as to compliance with these guidelines . The Board would not want to have the City delay an investment program activity until they could come in and concur with each other as to where the money should be invested. Chairman Lewis advised that this could be avoided by set policies. Board Member Brown stated that the Investment Advisory Board is not a policy setting type Board. It is a Board that makes recommendations to the City Council. In response to Board Member Sales, Mr. Woods advised that it is standard operating procedures to invest sizable monies received into LAIF. Board Member Sales advised that what concerns him the most is that this Board sits here without guidelines. Board Member Brown advised that there seems to be a need to incorporate some type of a familiar and comfortable guideline. Investment Advisory Board 5 February 9, 1994 Minutes Mr. Woods advised that if the Board has the desire to set a format as to how they would like to see reports completed, it should be done soon. Council has approved the acquisition of current computer equipment and there will be computer programming involved. It would be a lot easier to set it up going in, then it would be to change it. In response to Board Member Sales, Mr. Woods advised that the City in is in the process of preparing the bid specification for the computer equipment. In response to Board Member Sales, Mr. Woods advised that he would contact the City Manager and City Attorney and set up a time that is convenient for the City Attorney and the Investment Advisory Board. MOTION - It was moved by Board Members Brown/Sales to Continue Consideration and Discussion of Investment Advisory Board Representative to Attend City Council Meeting and Present Investment Advisory Board's Concerns/Questions about a City Council Liaison and a Specific Task Outline. Motion carried unanimously. IV. STUDY SESSION - None V. BOARD MEMBER COMMENTS - None VI. OTHER - None VII. ADJOURNMENT MOTION - It was moved by Board Member Brown/Gilreath to adjourn the meeting at 6:30 P.'M. Motion carried unanimously.