1995 12 13 IAB4
78-495 CALLE TAMPICO — LA QUINTA, CALIFORNIA 92253 - (619) 777-7000
FAX (619) 777-7101
INVESTMENT ADVISORY BOARD
AGENDA
Study Session Room
78-495 Calle Tampico- La Quinta, CA 92253
December 13, 1995 - 4:30 P.M.
I CALL TO ORDER
a. Pledge of Allegiance
b. Roll Call
II CONFIRMATION OF AGENDA
III PUBLIC COMMENT -(This is the time set aside for public comment on any matter not scheduled on the agenda.)
IV CONSENT CALENDAR
A. Approval of Minutes of November 8, 1995.
V BUSINESS SESSION
A. Transmittal of Treasury Report for October 31, 1995.
VI BOARD MEMBER COMMENTS
VII INFORMATIONAL ITEMS
A. Presentation of Draft Comprehensive Annual Financial Report - Cash Footnote by Ken
Ali -man, Partner with Conrad & Associates.
B. Online Services Information From Bond Trustees.
VII ADJOURNMENT
MAILING ADDRESS - P.O. BOX 1504 - LA QUINTA, CALIFORNIA 92253 ��
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INVESTMENT ADVISORY BOARD MEETING: December 13, 1995
Business Session: A
ITEM TITLE
Transmittal of Treasury Report
for October 31, 1995
ISSUE AND DISCUSSION:
Attached please find the Treasury Report for October 31, 1995.
RECOMMENDATION:
Review, Receive and File the Treasury Report for October 31, 1995.
Approved for submission to the Investment Advisory Board:
Jo n M. Falcone
Finance Director
INVESTMENT ADVISORY BOARD MEETING: December 13, 1995
INFORMATIONAL ITEM: A
ITEM TITLE
Presentation of Draft Comprehensive
Annual Financial Report - Cash Footnote
ISSUE AND DISCUSSION:
The draft Comprehensive Annual Financial Report (CAFR) was not available when the
agenda was distributed. A copy of the draft CAFR will be distributed at the meeting.
Mr. Ken AI -Imam, Partner with Conrad & Associates, CPA's will be in attendance
to discuss the cash and investment aspects of the financial statements and will be
available for questions.
Approved for subrpission to the Investment Advisory Board:
in M. Falcbne
ance Director
INVESTMENT ADVISORY BOARD MEETING: December 13, 1995
INFORMATIONAL ITEM: B
ITEM TITLE
Online Services Information
From bond Trustees
ISSUE AND DISCUSSION:
Attached please find correspondence from our two bond trustees:
First Interest Bank (FIB)
First Trust
The majority of City bond trustee funds are with FIB.
FIB has agreed to send a computer representative to our offices from the Los Angeles area and
install the software necessary to access financial information from our computers. There is no
hookup fees or maintenance fees. The only fees would be local access charges through
CompuServe and a one time charge in which the City would have to purchase Procomm 2.1 for
Windows software. This software has been purchased. See attachments for the services that will be
available.
First Trust has provided us with a similar list of services and a pricing schedule. The price that they
have given us is excessive based upon the anticipated use. We will continue to obtain information
over the phone from our trustee as required. I have spoken to the Regional Vice President and
expressed my thoughts that this service should not be as costly as it is.
Once the FIB software is up and running I will contact them again to see if it can be furnished,
hopefully at no charge and with no maintenance fees. I have attached the services that are
available.
Approy#d for submipion�o the Investment Advisory Board:
In M. Falcon6r
ance Director
11/28/95 16:36 0213 614 2457 CORP. TRUST
First Interstate Bank
of C.antorni*
Cofpormte Trust aept.
FjInterstate 707 Wilshire Qoulevard• ws 1 • t
Bank
Los Angeles, CA 90017
FACMD—L19 TRA—MASS YON0 R. LETTER
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Facsimile No.:
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Company or beparl znent:
From:
Re:
Telephone No.: 7
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G. Monica Fspinoza
Trust Officer
Corporate Trust Dept., W11-1
Telephone: (213) 614-2359
Facsimile: (,2x3) 614.-2457
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Message:
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FAX-WP.70
We go the extra mile foryouu. -
11/28/95 16:36 00213 614 2457 CORP. TRUST
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ON-LINE IlNFORMA ON
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ON-LINE IN ORMATTON EXCHANGE
First Interstate Bank's interactive customer information access system, On -Line Information
Exchange, operates in an on-line, real-time environment. By linking the capabilities of this
system with your Institutional trust account, an entire new set of electronic account management
techniques are unleashed.
The Can -Line Information Exchange was designed with one purpose in mind: To provide your
company with a mechanism which allows instant access to information pertaining to your trust
account portfolio_ ne On -Line Information Exchange system allows you to view your daily,
weekly, or monthly account activity whenever you want during the business day,
The On -Line Information Exchange makes full use of menu -driven screens and instructions,
malting it easy to use. The system maintains a 16--month account history and has many different
reports available. If you cannot find time during the day to access the system, our unique
"mailbox" feature allows you to automatically send reports to your computer, which you can
theft print or download to a spreadsheet at your convenience.
Although the On -Line Information Exchange is easy to use, it has many security features to
protect your information. Each user is required to enter IDs and passwords when accessing the
system, and the system will automatically log out users if nothing is entered within a specified
time,
The On -Line Information Exchange system is another example of First Interstate Bank's
commitment to quality, innovation, and customer service. New features and services will be
introduced to ensure that the system continues to meet your evolving requirements for financial
management, It is our fundamental belief that when you, our client, are successful in the
management of your portfolio, we are successful.
We welcome your comments suggestions, and questions on the On -Line Information Exchange
or any Institutional Trust service.
11/28/95 16:37 V213 614 2457. CORP. TRUST
1 ".0 A If - va c.i.i 0J.0 0 5u 4043 FICA TRUST SYS.
2 004/00s
Q 003
EQUIPMENT rT SET -LT
To access the system with a personal computer (PC), you need the fallowing;
■ A personal computer (such as an IBM PC, XT, AT, PS/2, or compatible).
■ A Hayes -Compatible modern (either 1200, 2400 or 9600 baud).
a Communications software (F.IB Supports Procomm).
11/28/95 16:37 10213 614 2457 CORP. TRUST 005/008
%J aia onu JU43 FICA TRUST SYS, 004
REPORTS AVAILABLE SOUGH ON-LINE INTORMATION EXCHANGE
Balances Summary Report
Gash and Account Summary Report
Holding List Report
Transactions Report
Position Detail Report
Pending Trades Report
Anticipated Cash Projections Report
Summary of Assets Report
Security Master Detail Report
Security List of Holders Report
Bond Quality Schedule Report
Selected Holding Reports
Income Accruals Report
Income Accruals Report
List of Assets Deport
Maturity Schedule Report
Market Value Report
Portfolio Analysis Report
Transaction Schedule Report
11/28/95 16:38 '0213 614 2457 CORP. TRUST
.. , -- . ebb .,J6Q 90U 0UViCA TRUST SYS.
2 006/008
9005
SUMMARY OF REPORTS
The following reports are available through On -Line Information Exchange:
Balances Suntrnary Compares the currentcash and investment balances for an account
with balances from the last statement, Iast month, and last tax
year. Also shows long-term and short-term wins and losses for
current fiscal year.
Cash and Account Shows general account information and summary cash and asset
Summary information for an account. Report includes pending trade cash,
date of last transaction, current market value, and current cash
summary.
Holdings List Identifies the asset holdings in a portfolio and helps reconcile
holdings with records maintained in your office. The report can
be limited to a specific major asset or major industry class and
includes the shares/PV, ticker symbol, market value, tax cost, and
percentage of total market for each security held.
Transactions Provides a detailed description of all transactions made for an
account within a specified date range. There are 16 months of on-
line history information available. The report can be sorted by
transaction activities such as buys, sales, maturities, free
receive/deliver, and transactions by CUSIP number.
Position Detail Shows total amount of shares or par value of a security by taxlot-
level (individual purchase). Derail includes CUSIP number, book
value, market value, unrealized gain/loss, tax cost, registration
code, and location code. .
Pending Trades Identifies all or specified pending items for an account, including
buys, sales, maturities, and free receives/delivers.
Anticipated Cash Shows a projection of an account's cash balance on a future date,
Projections This real-time report lists all scheduled activities, such as pending
trade settlements, maturities, dividends, interest, and principal
payments that will affect the cash balance within the specified
timeframe. The report also includes an aggregate total of cash for
the specified timeframe identified by type of activity.
11/28/95 16:38 $213 614 2457 CORP. TRUST 2007!008
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Summary of Assets Shows market values, tax cost, percentage of markets estimated
annual income, and cash required for pending trades for an
account's holdings by major asset class. Using the ZOOM
function, you can generate a report listing assets only for a
specified major asset class.
Security Master Shows how an individual security is set up on the First Interstate
Detail Central Asset File. The security to be reported is identified by
ticker symbol or CUSIP number. The report lists the security short
and long name, minor asset type, annual income,, next two income
dates, current price, record date, payable date, and market price
for nine previous month -ends.
Security List of Lists all accounts holding a specified ascot. You can use the
Holders ZOOM function to list Position Detail report information for any
account displayed (for customers with multiple accounts.)
Bond (duality Sorts bond holdings (highest to lowest) according io a pre -selected
rating system. Rating systems available include Moody's and
Standard &. Poors. The book and market vaiues, current price,
and annual income figures are included for each bond position_ In
addition, unrealized gain/loss is calculated by comparing tax cost
to current market value, and yield to maturity is calculated using
a formula called "Fisher's algorithm".
Selected Moldings This report is similar to the Moldings List report but includes
registration and location codes for each asset held in the portfolio_
The report can be sorted by major asset category, major asset
category then minor asset class, major industry category, or major
industry category then minor industry class.
Income Accruals Lists all earned income amounts for account holdings. The report
can include all assets in an account or a single asset. A date range
can be specified and the report can be produced on trade date or
settlement date.
LW of Assets Provides an abbreviated list of assets for a selected account.
Assets are grouped by major asset category, with sub -totals of
market and book values, tax costs, and projected annual income
included for each asset.
Maturity Schedule Lists maturity dates for account holdings sorted by year. Each
position reflects book and market values, estimated annual income,
unrealized gains and losses, tax costs, and yield to maturity.
11/28/95 16:39 1&213 614 2457 CORP. TRUST 2 008/008
_-, _-• -- I.-. ..liii �-Le oov .avge FICA TRUST SYS. Q007
Market Valise provides a listing of asset positions for a single account, with an
emphasis on showing market values based on current price or end -
of -month price. Account holdings are grouped by minor asset
class, and the price, date of price, and pricing method used are
identified for each position. Income frequently and rate
information are also provided.
Portfolio Analysis Provides a breakdown of an account's holdings by security type,
including liquid assets, equity assets fixed income assets, and
other assets. The report reflects the asset names number of units,
market value, and percentage of total portfolio market value
represented.
Transaction Schedule The same as the Transactions report, except that it lists changes in
income, principal cash, and principal investments white the
Transactions report lists changes in income and principal cash
only.
The following pages contain samples cif the reports summarized above_ Variations of these
reports . are available by choosing from multiple sort options,
First Trust
333 South Beaudry Avenue
Los Angeles, CA 90017
November 21, 1995
Mr. John Falconer
La Quinta
78495 Calle Tampico
La Quinta, California 92253
Re: First Access
Dear Mr. Falconer:
In your discussion with Mr. Terry McRoberts, you had expressed great interest in our
First Access product. First Access allows on-line access to trust account and transaction
information via a PC and modem. It offers a variety of capabilities including the ability to
view daily account activity, confirm payment of a requisition, verify projected investment
income, check trade status and print reports in your office. Download capabilities allow
you to manipulate data and customize reports. First Trust also provides ongoing training
and assistance. The fee schedule for this service is as follows:
DOS One -Time Set -Up Fee $750.00
Windows One -Time Set Up Fee: $750.00
DOS to Windows Migration Fee: $100.00
Basic Service Annual Fee: $1,250.00
Extended Service Annual Fee: $21,500.00
Basic Service includes inquiry and printing including AccuTrust and Distribution
information. Extended Service is the Basic Service plus download/upload of AccuTrust,
trades and distribution information.
We would be pleased to demonstrate the power and flexibility of this customer designed
product at your convenience. We have also enclosed a brochure for your further
reference. If you have any questions, please feel free to call me at (213) 345-0688.
Thank you.
K,West r ards,
Ysall
Vice President and Manager
Member First Bank System
• FirstTrust
Minnesota North Dakota
180 East Fifth Street 200 North 3rd Street
Saint Paul, MN 55101 Bismarck, ND 58502
155 First Avenue Southwest 505 2nd Avenue North
Rochester, MN 54902 Fargo, ND 58102
130 West Superior Street South Dakota
Duluth, MN 55802 141 North Main Avenue
Sioux Falls, SD 57102
Montana
303 North Broadway Wisconsin
Billings, MT 59103 201 West Wisconsin
Milwaukee, Wl 53259
�kn i a Bank o ado
Trust and kT4esWwft CiDUP
950 17th Street 422 White Avenue
Denver, CO 80202 Grand Junction, CO 81501
• Flrst7wst
078-0461 (9/93C) CONTAINS 10% POST CONSUMER WASTE
Easy Log -on: Log -on is similar to regular
PC DOS. You enter the application name,
then give your assigned ID and password.
Security Checks: Only you know your
authorized password for First Access. You
have the option to change your password
at any time but if you do not change it
within 30 days, First Access prompts a
change. Other security checks come
into effect for specific tasks, such as the
continuous print feature and the download
function.
Auto Maintenance: To streamline
maintenance and support, our application
automatically checks to make certain we
have not made any changes to the software
(enhancements, system bug fixes, etc.). If
we have, your software will automatically
update itself after you log on.
Menu Driven Screens: User friendly
menus make movement within the
program easy. Understandable, color -
coded prompts aid your choices, and
item- or letter -select options help you
quickly move from menu to menu or
receive detailed information on specific
items from various lists.
Unattended Download- Schedule
downloads of data for off-peak times,
such as over lunch or in the early morning
hours, to keep your PC available for other
functions during computer rush hours.
Continuous Print; Continuous print is
available for transaction activity or asset
positions. Instead of requesting screen
prints of data separately, let First Access
print continuously and you can walk away!
32 Dedicated Lines: On-line service
when you need it — no busy signals!
Bulletin Board• Gives you up-to-date
information about First Access with news
about scheduled upgrading times and special
new features.
ON-LINE INQUIRY
Schedule of Property: View account's
prior day's property holdings in varying
levels of detail.
Prior Days Work:• Account status
information at your fingertips, including
prior day transaction activity; closing
balances, accounts showing overdrafts, j
pending transactions (in summary and
detail). Good for cash management issues.
Transaction Activity: Shows up to 18
months of transactions for inquiry with
four transactions per screen. Continuous
print can be used for specific time periods.
Management Position Summary: Gives
list of accounts with total cost and market
value; projection of maturing securities
for up to 60 days, and a list of holders for
specific securities.
Cash Management Shows daily sweep
and daily balances based on previous day's
transactions and current days projections.
Up to five days of projections are available
upon request.
Authorize Trades (TAS): Gives you access
to input your own trades into AccuTrust.
Also, you may search for cusip numbers by
entering the company's name. The authorize
trades function may be added at your request.
Security History: Will give up to 18
months of securities history (account
positions and security -specific activity).
Investment Movement (SMAC): Provides
real-time security movements.
Performance Measurement Provides
high level summary by sector with current
portfolio performance and historical
performance returns plus comparable indices.
DIRECT TRADE INPUT
This on-line interface to our trade settlement
desk allows you or your investment manager
to input trades directly for execution.
11 • f _�
First Access enables you to download data
right into your PC, in a variety of PC file
formats. You can even schedule the download
to occur before office hours so your reports
are waiting for you when you come in to
work. Month -end reports and statements
can also be scheduled to download in your
office as soon as they are available, further
expediting the delivery of your information.
Our clients on the east and west coasts
especially appreciate this time saving feature.
A quality system such as First Access is only
as good as the people who stand behind it
and who are available to help you get the
most from it. Currently, First Trust has one
dedicated product manager, six full-time
support professionals, and two programmers
dedicated to First Access. These individuals
not only install First Access for you, but also
train your employees. To use the system to
its fullest advantage, training is given in
your office; on your own equipment. Our
support staff are available during regular
business hours to answer your questions,
either by phone or in person.
First Trust's First Access is your dynamic link
to plan information. With this system you
enjoy direct access to a variety of reports, may
enter your own trades, and are able to create
and print your own statements in your office.
First Trust provides fully -tested, sophisticated
technology assuring you easy log -on, effective
security checks, auto maintenance, user-
friendly menu -driven screens, unattended
downloads, and continuous printing. With
the support of our outstanding professionals,
you can be confident of getting the most
from this popular software. Let us show you
the wonders of First Access so that you may
take advantage of this exciting system soon.
For more information
regarding First Access,
please call 612-244-0441.
(71/
Xirstcess gives you easy, flexible access
to your account information at First Trust.
Through your PC, a modem, and our
innovative software, you and your investment
managers are able to view asset positions,
account balances, trade settlement activity,
historical data, and many other reports
on-line. In addition, you may download
both position and transaction detail in a
variety of formats. First Access also features
unattended download, so you can schedule
reports to automatically download at your
convenience. Direct trade input is also
available. These are just some of the many
features that put First Access in a class of its
own when it comes to client satisfaction.
From its inception, First Access has been
dedicated to meeting the reporting needs
of our clients. First Access originated from
one of First Trust's many client focus groups.
This particular group had very definite
ideas about applying PC technology to the
tremendous amount of data First Trust
stores in its mainframe, AccuTrust, on their
behalf. These clients wanted access to a
variety of reports. They wanted a program
that was user friendly, easy to run. They
wanted a system with built-in security
checks. They wanted an auto -upgrade
feature so they didn't have to load new soft-
ware whenever there was an enhancement.
They wanted to enter their own trades, or
allow their investment managers to do so.
They wanted to be able to create their own
statements, right in their own offices.
These needs, and many others, are met
with First Access.