Loading...
1994 03 08 IAB Minutes INVESTMENT ADVISORY BOARD MINUTES MARCH 8, 1994 I CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 3:05 P.M. by Chairman Lewis, followed by the Pledge of Allegiance. PRESENT: Board Members Brown, Gilreath, Wilson and Chairman Lewis ABSENT: Board Member Sales OTHERS PRESENT: Jim Woods, Interim Finance Director, Mary Wagner, Stradling, Yocca, Carlson and Rauth and Debbie DeRenard, Secretary Chairman Lewis advised that Mary Wagner with Stradling, Yocca, Carlson & Rauth was present to answer any questions the Board may have regarding the Investment Advisory Board. Board Member Brown advised that there is a very broad base for investment policy guidelines. This Board feels that this base could include internal policy and the investment of purchasing computers. The Boards concern is to identify a specific task or outline and apply it to the Ordinance. Ms. Wagner indicated that the functions that are set out are the three functions contained in Section 2.70.030 of the Municipal Code. These are the parameters which the Board acts within. In terms of the intent with which the Ordinance was adopted. The areas to which these functions focus are on the fiscal investments of the City and the reviewing of those investments and the insuring that all policies and procedures regarding the investments are met and complied with. Board Member.Brown advised that this addresses tangible cash assets and bank statements, but it does not address other investments such as charitable contributions, computer systems within the City and Internal policy and procedure with regard to how investments are approved. Ms. Wagner indicated that the functions of the Investment Advisory Board are limited to the functions such as selecting banking services and review of bond issuances. This was the intent with which the Board was created. Investment Advisory Board 2 March 8, 1994 Minutes Board Member Wilson questioned if the City was interested in the Board looking at monies that are prescribed to be invested in a certain way by State Code. Should the Board review the City's handling. Ms. Wagner advised that this would fall under the category of monitoring compliance with existing policy and procedure. She further advised that she would review the Code Section for the Finance Section which refers to how the City invests and see if those Sections are referenced. If they are this would clearly put the Investment Advisory Board in the policy. Board Member Wilson advised that you could construe an investment in the City as being a situation where the Council has attempted and then backed away from raising the money for the maintenance districts that would beautify the mediums in the City. Ms. Wagner advised that this would be beyond the scope of the functions as they are setforth and with the intent with which the Board was created. The direction of investments are clearly within the functions of the Board. In response to Board Member Brown, Ms. Wagner advised that if the Board is questioned by the public about their responsibilities, the Board would reference their functions as they are laid out and their concerns can be addressed to the City Council. II PUBLIC COMMENT None at this time. III CONSENT CALENDAR A. APPROVAL OF MINUTES FROM THE MEETING OF FEBRUARY 9, 1994. MOTION - It was moved by Board Members Brown/Gilreath to approve the minutes of February 9, 1994 as submitted. Motion carried unanimously. IV BUSINESS SESSION A. TRANSMITTAL OF TREASURER'S REPORT DATED JANUARY 31, 1994. Board Member Brown advised that on Page 14 of the Treasurers Report a check was made payable to Banque Audi - France. She questions what the check was for. Investment Advisory Board 3 March 8, 1994 Minutes Mr. ~oods advised that this check relates to a property condemnation action that finally came out of the courts and this was the court Judgement on the property. Board Member Brown advised that this would be an item that she needs additional information. She further advised that she would feel uncomfortable proceeding further with the Treasurers Report until the Board was given additional information. Mr. Woods advised that the Board would be furnished with more information. Board Member Brown advised that on page 15 of the Treasurers Report a check was issued to Rosenow Spevacek Group for $14,930. Mr. Woods advised that Rosenow Spevacek Group is under contract for the City and Redevelopment Agency to provide financial consulting services. In response to Chairman Lewis, Mr. Woods advised that the checks require two signatures. Those individuals that have authority to sign checks are the Mayor, Mayor Pro-tem, City Manager and Finance Director. MOTION - It was moved by Board Members Gilreath/Brown to continue the Transmittal of Treasurer's Report dated January 31, 1994 to the April 13, 1994 meeting. Motion carried unanimously. B. CONTINUED 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. Board Member Wilson advised that his mission statement is as follows: The Mission of the Investment Advisory Board is to make recommendations to the City Council about where to invest City money including reserves that fall outside State mandated procedures that encourages monies that must be placed in a prescribed way. This would be done with care looking to safety first and liquidity and yield second. Board Member Brown advised the Board Member Sales had good suggestions in his mission statement regarding the different ways to go through the reporting process. She advised that Board Member Sales should be involved in creating the reporting process. Investment Advisory Board 4 March 8, 1994 Minutes Chairman Lewis advised that the Board should decide if a representative to attend the City Council meeting is favored or having a representative from City Council attend the Investment Advisory Board meetings. The Board concurred on having a representative from the Board attend the City Council meetings if a problem is discovered or if there is a concern. MOTION - It was moved by Board Members Brown/Wilson to have a representative from the Investment Advisory Board attend the City Council meetings on an as needed basis. Motion carried unanimously. Chairman Lewis advised that the task outline would be a procedure that the City could use as a guideline for future Boards as to what the task are. MOTION - It was moved by Board Member Brown/Wilson to continue consideration on a Specific Task Outline including preparation from the Board to bring together a clear task outline and finalize by next meeting. Motion carried unanimously. V STUDY SESSION None at this time. VI BOARD MEMBER COMMENTS Mr. Woods advised that investment policies from three other cities was placed in the Agenda packets for the Boards review and guidance. VII OTHER The Board thanked Mr. Woods for his help and input during the last three months. VI I I ADJOURNMENT MOTION - It was moved by Board Members Wilson/Brown to adjourn the meeting at 4:10 P.M. Motion carried unanimously.