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1995 02 08 IAB Minutes FILF. COPY MI~UTES FEBRUARY 8, 1995 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 Vice-Chairman Brown, followed by the Pledge of Allegiance. PRESENT: Board Members Brown, Cfilreath, Irwin, Sales and Chairman Lewis (5:35) ABSENT: None OTHERS PRESENT' John Risley, Accounting Supervisor, Debbie DeRenard, Secretary II CONFIRMATION OF AGENDA Confirmed PUBLIC COMMENT None IV CONSENT CALENDAR A. Approval of Investment Advisory Board Minutes of January 11, 1995. MOTION - It was moved by Board Members Sales/Gilreath to approve the Minutes of January 11, 1995. Motion carried unanimously. V BUSINESS SESSION A. Transmittal of Treasurers Report dated December 31, 1994. In response to Board Member Irwin, Mr. Risley advised that the Revenue and Expense Report is not part of the Treasurers Report. MOTION- It was moved by Board Members Brown/Sales to approve the Treasurers Report dated December 31, 1994. Motion carried unanimously. Investment Advisory Board February 8, 1995 Minutes VI BOARD MEMBER COMMENTS Chairman Lewis advised that he spoke with Thomas Genovese, the City Manager regarding the search for a Finance Director. He advised that Mr. Genovese indicated that 45+ applications have been received. The actual closing date was February 3, 1995. Mr. Genovese advised that he anticipates having a Finance Director on Board in April. Board Member Irwin asked if Mr. Genovese would be attending the meeting tonight. Chairman Lewis advised that he spoke with Mr. Genovese and he indicated that there would be a large number of handouts at the meeting tonight. Mr. Genovese advised that he would be attending next months meeting to answer any questions the Board might have. Board Member Sales questioned if the Board needs to meet until a Director of Finance is on board. Chairman Lewis advised that this has been discussed at prior meetings. It was the consensus of the Board that there would be a backlog of Treasurers Reports. It was felt that a quarterly meeting would alleviate this. Board Member Irwin advised that he feels the City Manager should be present at every meeting as a routine matter. Board Member Sales stated that the City Manager does not need to be in attendance. The City is without a Finance Director and John Risley is acting staff liaison. Mr. Genovese attended the January meeting and answered questions from the Board. Board Member Gilreath advised that the Board had a lot of criticism because we were not having meetings. Board Member Sales advised that since the City is without a Finance Director, investments are not going to be changed. Mr. Risley advised that changes in investments can occur, but only by the City Manager. Board Member Sales stated that this is fine as long as the City Managers understands that the Investment Advisory Board feels he should not make any changes without consulting with Investment Advisory Board February 8, 1995 Minutes the Investment Advisory Board. Mrs. DeRenard advised that the Treasurers Reports can be mailed to each Member Monthly if the Board chooses to meet Quarterly. Board Member Brown advised that she would like additional information on the following Check numbers: Ck. 20022, $ 147,684.65, Ck. 20143, 80,105.66, Ck. 20199, 111,115.42, Ck. 20231, $17,300.00, Ck. 20262, $30,764.78. Mr. Risley advised that Staff will provide the additional information requested. Board Member Irwin advised that he has received a Revenue and Expense report at the City Council meeting. He asked if this report would be available routinely to the Investment Advisory Board. Mr. Risley advised that it will be available routinely at~er the financial software is converted to the new system. Board Member Irwin thanked staff for sending the LAIF report to the Board. He distributed a list of his personal comments regarding the LAIF Annual Report (Attachment No. 1). VI ADJOtlRNMENT MOTION - It was moved by Board Members Brown/Gilreath to adjourn the meeting. Motion failed. Board Member Sales questioned if the Board was going to continue to meet without a Finance Director. Chairman Lewis advised that the City Manager, Tom Genovese gave the Board a large Investment Advisory Board February 8, 1995 Minutes amount of material for their review. The City Manager has given the Board the opportunity to review the material and have questions answered at next months meeting. The Board concurred on meeting next month and placing the meeting schedule on the agenda for March. Board Member Irwin advised that it's important that the City Manager be around after the Finance Director is on Board for continuity. Chairman Lewis advised that this can be discussed with the City Manager at the March meeting. Board Member Irwin advised that this was discussed two meetings ago. Chairman Lewis advised that it was discussed to request his present at the January meeting, but could not recall requesting his presents at every meeting. Board Member Gilreath advised that she did not recall requesting his presents at every meeting. Board Member Irwin advised that it was his intention to request his presents at every meeting and he would like to repeat this request again. Board Member Brown asked if it's standard operating policy for the City Manager to attend other Boards and Commissions. Mrs. DeRenard advised that the City Manager does not attend any Board or Commission meetings unless his appearance is requested. The City Manager attends every City Council/ Redevelopment Agency meeting. Board Member Brown advised that it was her understanding that Mr. Risley's attendance was to act as a liaison to the Board. Chairman Lewis advised that it is his understanding that any benefit of the City Manager being here monthly would be directly proportional to just how involved in the investment process he is going to be. In response to Board Member Sales, Mr. Risley advised that regarding the handouts given to the Board tonight, the City Manager will be available to answer questions at the next meeting. Investment Advisory Board February 8, 1995 Minutes Board Member Irwin advised that at last months meeting, Mr. Genovese was presem and answered question quickly and efficiently. Chairman Lewis advised that this can be discussed with Mr. Genovese at the next meeting. The Staff present tonight is not able to answer whether Mr. Genovese can attend momhly. VI ADJOURNMENT MOTION- It was moved by Board Members Sales/Brown to adjourn the meeting. Motion carded unanimously. Attachment No. 1 Comments from review of 1992-93 and 1993-94 PIMA Annual Reports · No GAAP financial statements · No audit by independent accounting finn · No registration or regulation with/by SEC · No discussion of investment policies, strategies or view of markets · Unable to compare expense ratio of PIMA to those of other money managers · Slow reporting of results to investors (Seven months compared to 30-45 days of commercial funds) · Annual reporting cycle rather than semi-annual as required by SEC or quarterly cycles of some fund managers · Although FY 1993-94 was a period of rising interest rates PIMA' s average maturity lengthened 21% when a decrease might be expected · Yield disparities of Treasuries in portfolio suggest use of some derivative securities, particularly in FY 1992-93, in addition to repo activity. No disclosure or discussion. (T-Bills yield more than 5 Year Note!) JAI 2/8/95