Loading...
1994 06 22 IAB Minutes INVESTMENT ADVISORY BOARD MINUTES JUNE 22, 1994 I CALL TO ORDER 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: Richard Parzonko, Finance Director and Debbie DeRenard, Secretary II PUBLIC COMMENT - None III CONSENT CALENDAR - None IV BUSINESS SESSION A. Transmittal of Treasurer's Report Dated April 30, 1994. In response to Board Member Sales, Mr. Parzonko advised that the Treasurers Report has a new format. We have replaced the bank statements with the demand register reports. The demand register is a report that is approved by the City Council. Board Member Sales advised that he would like to received copies of the bank statement reconciliations along with the demand registers. MOTION - It was moved by Board Members Brown/Sales to approve the Treasurers Report B. Internal Controls - Warrant Register Noted & filed. Investment Advisory Board 2 June 22, 1994 Minutes C. Investment Policy Review In response to Board Member Sales, Mr. Parzonko advised that the Investment Policy is currently in draft form and under review by the Board Members. Following this meeting's approval process, the formal draft will be completed and forwarded to the City Attorney and City Manager for their review. A tentative meeting date of July 19th has been set for submission to the City Council for their consideration. Board Member Brown advised that she would like to have the investment policy approach any investment with a bidding process instead of placing it with a particular broker or agency. She further added that another criteria that needs to be added is background on the broker/agency and completed investment transactions that will be verified by City Staff. Chairman Lewis suggested adding "that a resume with references be required of the Broker/Agency" in Section IX. Board Member Brown stated that the identification of fees should be listed in the policy as part of the Broker/ Agency criteria. Chairman Lewis advised that the Federal Savings and Loan Insurance Corporation no longer exists. Mr. Parzonko clarified that the Board would like more verbiage as to the Broker background. Board Member Brown advised that the Policy should also request the length the Broker has been in business. In response to Board Member-Brown, Mr. Parzonko advised that the City Attorney would review the Investment Policy prior to formal review by City Council. Board Member Sales questioned where the Investment Advisory Board fits into the Investment Policy. Mr. Parzonko advised that the Investment Advisory Board is involved in developing the investment strategy and monitoring the results. They also will be involved in the financial reporting. Investment Advisory Board 3 June 22, 1994 Minutes In response to Board Member Sales, Mr. Parzonko advised that the Investment Advisory Board's role can be identified in Section X and XI and the Philosophy section. MOTION - It was moved by Board Members Sales/Gilreath to accept the Investment Policy with the changes discussed. Motion carried unanimously. D. Assessment District Money Market Fund Analysis Mr. Parzonko presented the staff report and advised that currently the City has a variety of bond reserve fund. Among these are Assessment District funds that are invested through the Bank of America and First Interstate Banks. After researching these issues it has been discovered that the City is not maximizing the yield of the Assessment District Bond Reserve Funds. Even if the City stayed within the same investment parameter the City could increase their yield substantially. This would mean shifting monies from one Assessment District Money Market Fund to another. He further advised that the fees being charged by Bank of America and First Interstate are substantially higher then those of other institutions. Board Member Sales requested a prospectus on AIM Short- Term Investments Trust. Mr. Parzonko advised that he would bring the comparison back to the Board. E. General Fund Loan to Redevelopment Agency Mr. Parzonko advised that the City's Redevelopment Agency is projected to have a $2.2 million negative cashflow deficit in the Capital Project Area #1 Fund as a result of the Phase V project. A loan at the end of the fiscal year will be necessary to cover the cashflow shortage. The General Fund is recommended to provide the loan to the Agency. Mr. Parzonko advised that last years lending rate was 10%. In response to Board Member Sales, Mr. Parzonko advised that a loan from an outside source was being looked as a secondary option. Investment Advisory Board 4 June 22, 1994 Minutes In response to Board Member Sales, Mr. Parzonko advised that a loan would have to be approved by the City Council and Redevelopment Agency. In response to Board Member Sales, Mr. Parzonko advised that City-owned land would be put up as collateral. The Board concurred that the interest rate for the City loan should be the same as the prime lending rate v Study Session A. FY 94-95 Objectives Mr. Parzonko presented the staff report and advised that he listed the critical objectives that will effect the Investment Advisory Board. Noted and filed. B. Banking/Custodian Services Agreement Mr. Parzonko advised that the Banking/Custodian Services Agreement RFP is proposed in the near future. Mr. Parzonko suggested that the Board to review the sample RFP and bring comments back to the July Board meeting. In response to Board Member Sales, Mr. Parzonko advised that he would send each Board Member a fee analysis of Bank of America. VI BOARD MEMBER COMMENTS Chairman Lewis advised that at the June 21st Council Meeting the Council reappointed Board Members Brown, Gilreath and Sales for another term. Board Member Brown recommended that Council have a minimum criteria concerning attendance. Having served a year it is important to note that it is an attendance issue that helps the Board accomplish as much as the Board can. Investment Advisory Board 5 June 22, 1994 Minutes Debbie DeRenard, Investment Advisory Board Secretary, advised the Board that the Ordinance states that "if a member misses three (3) consecutive regular meetings within any fiscal year without advanced permission his/her office shall become vacant and shall be filled as any other vacancy. Chair~nan Lewis/Board Member Brown did not recall Board Member Brown being in attendance for three consecutive meetings. Mrs. DeRenard advised that she would research the attendance for the Board Members. Board Member Brown advised that she has the most respect for Board Member Wilson, but feels it is very important for criteria to be established and followed regarding attendance. VII OTHER VIII ADJOURNMENT MOTION - It was moved by Board Members Brown/Gilreath to adjourn the meeting. Motion carried unanimously.