1994 08 31 IAB Minutes INVESTMENT~ADVISORY BOARD
MINUTES
SPECIAL MEETING
AUGUST 31, 1994
I CALL TO ORDER
Special meeting of the La Quinta Investment Advisory board was
called to order at the hour of 5:40 P.M. by Chairman Lewis,
.followed by the Pledge of Allegiance.
PRESENT: Board Members Brown, sales and Chairman Lewis
ABSENT: Board Members *Gilreath and Wilson
OTHERS PRESENT: Richard Parzonko, Finance Director and Debbte
DeRenard, Secretary
II PUBLIC COMMENTS
JOE IRWIN, 44-065 Camlno La Cresta, spoke regarding.the
City's investment strategy
III CONSENT CALENDAR - None
IV BUSINESS SESSION
A. Continued Consideration of. Banking Services Request for
Proposal.
Mr. Parzonko presented the final draft Banking RFP for
review and approval by the Investment Advisory Board.
Mr. Parzonko advised that the Banking RFP has been
edited and custodial service have been included.
Mr. Parzonko reviewed the Banking RFP (Exhibit A) with
the Board. Sections reviewed are listed as follows:
1, Proposal Calendar
2. Introduction
3. Bidding Instructions
4. Bank Credit Evaluation
5. Scope of Banking Services
6. Current City Operations
7. Required Banking Services
8. Account Maintenance Services
9. Optional Services
10. Custodial Services for Investments
11. Bidding Forms.
Mr. Parzonko advised that it would be a good idea to
send an Investment Policy along with the Banking RFP.
Board Members concurred.
MOTION - It was moved by Board Members Brown/sales to
approve the Banking Services RFP for submission to the
City Council for approval. Motion carried unanimously.
B. Investment Policy Compliance Review.
Mr. Parzonko advised that this item is in regards to
compliance with the Investment Policy as to whether the
City should take action regarding the transferring of a
portion of the government pools investment into another
security. This would bring the City into compliance
with the Investment Policy.
Mr. Parzonko advised that the Board previously
discussed the potential of looking at a U.S. Treasury
investment. He presented the Board with a five (5)
year U.S. Treasury Note Yield schedule.
In response to Board Member Sales, Mr. Parzonko advised
that the 1994-95 Budget has a surplus of $120,000. He
further indicated that there are conservative budget
estimates for the Transient Occupancy Tax.
In response to Board Member Sales, Mr. Parzonko advised
that the City is over invested in the Government Pools.
In order to come into compliance the City would need to
invest $1,000,000 into another investment account.
In response to Board Member Sales, Mr. Parzonko
suggested an investment in two (2) year Treasury Notes.
Board Member Brown commented that the Investment
Advisory Board has been very successful in regards to
the Investment Policy and it is incumbent upon the
Investment Advisory Board to make the recommendation to
come into compliance with what the City Council has
identified as acceptable.
Mr. Parzonko advised that it is not necessary for him
to have Council's approval to invest the $1,000,000 in
a approved investment account.
MOTION - It was moved by Board Members Sales/Brown to
recommend to the Finance Director to come into
compliance with the City's Investment Policy that has
been established. The Investment Advisory Board
suggests that the Finance Director review the two (2)
year Treasury Note. Motion carried unanimously.
V BOARD MEMBER COMMENTS - None
VI ADJOURNMENT
MOTION - It was moved by Board Members Brown/Sales to
adjourn the meeting. Motion carried unanimously.