1994 08 17 IAB Minutes INVESTMENT ADVISORY BOARD
MINUTES
AUGUST 17, 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, Sales and Chairman Lewis
ABSENT: Board Members *Gilreath & Wilson
OTHERS PRESENT: Richard Parzonko, Finance Director and Debbie
DeRenard, Secretary
*Excused
II PUBLIC COMMENT - None
III CONSENT CALENDAR
A. Approval of Minutes from the June 22, 1994 Investment
Advisory Board meeting.
Board Member Sales advised that on page 5, the second
paragraph should read, "Chairman Lewis/Board Member
Brown did not recall Board Member Wilson being in
attendance for three consecutive meetings".
MOTION - It was moved by Board Members Brown/Sales to
approve the minutes as corrected. Motion carried
unanimously.
IV BUSINESS SESSION
A. Consideration of Banking Services Request for Proposal.
Mr. Parzonko advised that with the comments from the
Board at the previous meeting, a revised draft version
of the draft banking services request has been
presented. He further advised that he has requested
copies of a custodial services agreement RFP that will
be added on the banking services request as an optional
service and will be included as part of the optional
proposals section. The custodial services agreement
RFP is scheduled to arrive within one week.
The Board reviewed the Request for proposal (Exhibit
A).
Board Member Sales questioned if the City of working
under a RFP Contract with Bank of America.
Investment Advisory Board 2 August 17, 1994
Minutes
Mr. Parzonko advised that he would research this and
advise the Board of his findings.
Mr. Parzonko advised that the document is proposed to
be submitted to the City Council at their September 20,
1994 meeting.
The conditions of qualifying at the banking institution
as proposed is standard verbiage that comes from the
Government Finance Officers Model documents.
He advised that the document will be sent to all banks
located between the City of Palm Desert and the City of
Indio.
The Board concurred on including the entire Coachella
Valley in the RFP distribution.
Mr. Parzonko advised that he would modify the Banking
RFP and bring it back to the Investment Advisory Board
before the next regular meeting.
The Board concurred on a special meeting on August 31,
1994 at 5:30.
MOTION - It was moved by Board Members Brown/Sales to
continue and finalize the Banking RFP at the August 31,
1994 Special Meeting. Motion carried unanimously.
B. Investment Advisory Board Attendance/Criteria.
The Board reviewed the attendance record of the Board
Members.
Chairman Lewis advised that Board Member Wilson has
missed three (3) consecutive meeting.
Mr. Parzonko advised that according to the guidelines
that were setup for the Board by the City Council, if a
Board Member misses three (3) consecutive meetings or
over 25% of the meetings they technically are not
adhering to their commitment.
Board Member Brown recommended that this be brought to
the attention of the City Council for their direction.
Mr. Parzonko advised that Joseph Irwin has expressed an
interest to be on the Investment Advisory Board.
Investment Advisory Board 3 August 17, 1994
Minutes
MOTION - It was moved by Board Members Brown/Sales to
bring Board Member Wilson's attendance to the City
Council for their review. Motion carried unanimously.
V STUDY SESSION - None
VI BOARD MEMBER COMMENTS
VII OTHER
Mr. Parzonko presented an analysis on Bond Proceeds and
Operational Funds as an informational item.
He advised that the total operational fund available are
$12,854,505. The portfolio maximum limit for investment in
government pools is 90%. The portfolio compliance limit
would be $11,569,055 for investment in government pools. As
of July 31, 1994 the balance for government pools is
$12,562,052. A negative figures means that the City is not
in compliance with the Investment Policy. In order to come
into compliance the City would need to invest $1,000,000 in
another investment account other than a government pool.
Board concurred on Mr. Parzonko reviewing the investments
and bringing back them back to the Board with charts and
graphs for the Boards review.
VIII ADJOURNMENT
MOTION - It was moved by Board Members Brown/Sales to
adjourn the meeting. Motion carried unanimously.