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1994 12 14 IAB Minutes INVESTMENT ADVISORY BOARD M1NU~S DECEMBER 14, 1994 I CAI,l, TO ORDER Regular meeting of the La Quinta Investment AdviSOry Board was called to order at the hour of 5:30 P.M. by Vice Chair Brown, followed by the Pledge of Allegiance. PRESENT: Board Members Brown, Gilreath, Irwin, Sales and Chairperson Lewis (5:35) ABSENT: None H CONFIIIMATION OF AGENDA Confirmed. Ill PURl.lC COMMENT None IV CONSENT CALENDAR A. Approval of Investment Advisory Board Minutes of September 14, 1994. MOTION - It was moved by Board Members Gilreath/Sales to approve the minutes of the September 14, 1994 Investment Advisory Board meeting. Motion carded unanimously. V BUSINESS SESSION A. Transmittal of Treasurers Report dated August 31, 1994. Board Member Sales questioned why the LAIF Statement and the Demand Register were not included in the Treasurers Report. Investment Advisory Board 2 November 13, 1994 Minutes John Risley, Accounting Supervisor advised that it was his understanding that the Demand Register was not to be included in the Treasurers Report. The LAIF Statements were inadvertently not included, and would be included in the next agenda packet. Board Member Sales questioned why the bank reconciliation and the Treasurers Report do not balance. Mr. Risley advised that an adjusting entry was not included in the Treasurers Report. Board Member Sales advised that part of the respOnsibility of the Investment Advisory Board is to advise on investment activity and this is not being done. Mr. Risley advised that the City has two acting Finance Directors. Thomas GenoveSe is the acting operating Finance Director. He is currently the only person authorized to make investment changes. He further advised that he was the Accounting Supervisor and for internal control purposes, cannot be involved in investments because he can effect financial records. In response to Board Member Irwin, Mr. Risley advised that the City Manager does not normally attend the Investment Advisory Board meetings. Board Member Irwin advised that because of the turnover, if two senior staff members attend the meetings, the City Manager and Finance Director you have continuity. There was some lack of continuity, in that when the Investment Policy was established, the City Manager made changes without getting input from the Investment Advisory Board. Chairman Lewis advised that the City Manager made some recommendatiOns that were brought back to the Board through the Finance Director. It was moved to continue this item until the January, 1995 meeting. Motion carded. B. Transmittal of Treasurers Report dated September 30, 1994. It was moved to continue this item until the January, 1995 meeting. Motion carded. C. Transmittal of Treasurers Report dated October 31, 1994. It was moved that at~er review of the Treasurers Report the Board is unable to make a recommendation without additional information and requests that this item be resubmitted at the January, 1995 meeting. Investment Advisory Board 3 November 13, 1994 Minutes Board Member Irwin requested that the Council be advised of this problem in additiOn to this recommendation. Chairman Lewis advised that would be a separate issue. Motion carded. Board Member Sales advised that the minutes from the Investment Advisory Board are submitted to the City Council. He further advised that Council Member Bangerter sent the Board a letter advising that she was the Council Liaison and that the minutes from the meetings are reviewed by the City Council. Mr. Risley advised the Board that the City has contracted with an outside firm for the recruitment of the Finance Director position. Chairman Lewis stated that Mr. Genovese is approving the Treasurers Reports and they are not reconciling and for the record the Investment Advisory Board is disappointed in the state of Treasurers Reports that were submitted. VI BOARI~ MEMBER COMMENTS Board Member Brown stated for the record that having gone through the process of looking for a Finance Director, she would like to make a recommendation that when the Investment Advisory Board meets the Members are prepared for the meetings. Board Member Sales requested information on how the meetings are canceled. He advised that the City Manager canceled the last two meetings. Chairman Lewis advised that Mr. Genovese contacted him regarding the canceled meetings and he was under the understanding that Mr. Genovese was going to contact each Board Member. Board Member Brown advised that part of the problem might be that two individuals are responsible for the Finance Department and as a result of this meeting, an individual might be specifically responsible for reconciliation of the Treasurers Report. Investment Advisory Board 4 November 13, 1994 Minutes Board Member Irwin stated that if the City Manager were attending the meetings, there would not be a problem. Chairman Lewis advised that the problem would still exist in the fact that more than one person is .responsible for preparing the reports. Board Member Irwin advised that just the psychology of having two senior staff members attending the meetings instead of one. PartiCUlarly because of the turnover in the Finance Directors position. He further advised that he would suggest that the City Manager attend the IAB meeting several months at, er the new director is on board. Board Member Sales suggested the City Manager attend until the new Finance Directors has been made permanent. Board Member Gilreath advised that she has received several negative comments from big property owners in La Quinta regarding why the Investment Advisory Board meetings were canceled. Chairman Lewis advised that the Board. will need to meet in January, but questioned if it would be necessary to meet after that until a Director is in place. The City is investing their money in LAIF, while they donl have a Finance Director, the money is relatively safe. If the City feels it is necessary to invest their money without a Finance Director, this would be very disappointing to this Board if they did not ask for input from us. In response to Board Member Irwin, Mr. Risley advised that the Banking RFP Staff Report will be submitted to the City Council at their December 20th, 1994 meeting. He further advised that the Council appointed a selection committee that consisted of two Council Members, the City Manager and Accounting Supervisor. The selection Committee selected First Interstate Bank to be recommended to City Council. Board Member Irwin requested information on LAIF. Board Member Sales advised that at the August meeting, it was determined that the City was over-invested in government pools by $1,000,000. Board Member Brown advised that for the records, the City is out of compliance with their Investment Policy and that this should be taken into consideration. Chairman Lewis advised that it should be noted in the Treasurers Report on a monthly basis that the City is not in compliance with its own policy. The Council passes policies and then they rely on staff to police the policies. Investment Advisory Board 5 November 13, 1994 Minutes Board Member Sales stated for the record that just because the City does not have Finance Director, this should not have any thing to do with being in compliance with the policy. The man who is responsible is the man who caused the vacancy and to cause a vacancy like this without backup. Chairman Lewis advised that in the event that their is no meeting, the Investment Advisory Board Members should still receive a copy of the Treasurers Report. In response to Board Member Irwin, Chairman Lewis advised that the Board can request that the City Manager attend the Investmem Advisory Board Meetings. The Board concurred to request that the City Manager attend the January meeting. V ADJOURNMENT MOTION - It was moved by Board Members Brown/Sales to adjourn the meeting. Motion carried unanimously.