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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 �� QJ15 �z V > OF TNT 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 )0'/'-'aZ7-:)Oate.wTotal No. of Pages (Including haver pages). TO: % J Ida Facsimile No.: � Company or beparl znent: From: Re: Telephone No.: 7 41V G. Monica Fspinoza Trust Officer Corporate Trust Dept., W11-1 Telephone: (213) 614-2359 Facsimile: (,2x3) 614.-2457 70 � 0 Message: 2A Me �6? FAX-WP.70 We go the extra mile foryouu. - 11/28/95 16:36 00213 614 2457 CORP. TRUST _. . _ . - ..rv++ JV'i,a rlt;A TNUS'i SYS. 2 002/008 z 001 ON-LINE IlNFORMA ON EX CELA.L 1 G 11!2$/95 16:37 $CORP. TRUST a 003/008 est �0 213 614 2457 � OOz .....�.. i. . Vy r91OOV U044 FICA TRUST SYS. 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 .LJ.- �", W.1 JLr . vo r+,% 010 DOU 4V4Z FICA TRUST SYS. Q006 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.