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1996 02 14 IAB Minutes INVESTMENT ADVISORY BOARD MINUTES February 14, 1996 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 Acting Chairman Irwin, followed by the Pledge of Allegiance. PRESENT: Board Members Frame,' Irwin, Osborne, Rodriguez, and Sales ABSENT: Board Member Brown and Chairman Lewis OTHERS PRESENT: John Falconer, Finance Director and Debbie DeRenard, Secretary II CONFIRMATION OF AGENDA Mr. Falconer advised that a Memorandum was received from the City Attorney regarding the Prudent Investors Standards after the posting of the Agenda and a modification to Page 4 of the January 10, 1996 Investment Advisory Board minutes. MOTION - It was moved by Board Members Osborne/Frame to add the Memorandum from the City Attorney regarding the Prudent Investors Standards and the modification to the Investment Advisory Board Minutes of January 10, 1996 to the agenda. Motion carried unanimously. III PUBLIC COMMENT- None IV CONSENT CALENDAR A. Approval of Minutes of January 10, 1996 Investment Advisory Board Meeting. MOTION - It was moved by Board Members Frame/Rodriguez to approve the minutes of the January 10, 1996 Investment Advisory Board as amended. Motion carried unanimously. Investment Advisory Board February 14, 1996 Minutes V BUSINESS SESSION A. Transmittal of Draft Treasury Report for December 31, 1995. MOTION -It was moved by Board Members Sales/Frame to accept, receive and file the Treasury Report for December 31, 1995. Motion carried unanimously. B. Selection of Broker/Dealer Mr. Falconer advised that at the last meeting he advised that he had a recommendation to contact Prudential Securities. They were contacted and have since notified the City they are not interested. The City is awaiting signatures from Merrill Lynch. Staff is recommending that International Securities Group of San Diego and Merrill Lynch of Indian Wells be placed on the Broker/Dealers list of Financial Institutions for the City of La Quinta. The recommendation will be made to the City Council if approved by the Investment Advisory Board. In response to Acting Chairman Irwin, Mr. Falconer advised that International Securities of San Diego is listed in the National Association of securities Dealers Manual and clear through Bear Stearns. In response to Board Member Osborne, Mr. Falconer advised that he is still looking for other broker/dealer. He advised that the questionnaire is a difficult questionnaire to complete. In response to Acting Chairman Irwin, Mr. Falconer advised that the questionnaire is an important tool. It is a very detailed questionnaire and requires the broker/dealers to certify their answers. Board Member Osborne advised that he would like a motion made to endorse the Staffs choice of Merrill Lynch and continue to search for other brokeddealers. Investment Advisory Board February 14, 1996 Minutes Board Member Sales advised that the City needs two broker/dealers as stated in the Investment Policy. He further advised that he is bothered by. the fact that International Securities Group in San Diego is not a primary broker/dealer. Mr. Falconer advised that he feels strongly about having the Broker/Dealer questionnaire completed by potential broker/dealers. Mr. Falconer advised that he would contact other Cities and inquire whom they use as broker/dealers. MOTION - It was moved by Board Members Osborne/Sales to endorse Merrill Lynch as Broker/Dealers for the City of La Quinta and have Staff research for other potential broker/dealers. Motion carried unanimously. VI BOARD MEMBER COMMENTS - None VII INFORMATIONAL ITEMS A. Prudent Investor Act Noted and Filed. B. Review of Investment Policy Mr. Falconer advised that he spoke with Chairman Lewis regarding the investment policy. Chairman Lewis advised that he would encourage all Board Members to attend the California Municipal Treasurers Association (CMTA) Seminar in Palm Desert on March 8, 1996. This workshop would be beneficial to the Investment Advisory Board regarding Investment policies and reports. Board Member Osborne advised that he would like to wait to discuss this item until the Chairman and Vice Chairman are present.' Mr. Falconer advised that he reviewed the'existing policy, and added parts from other policies. Investment Advisory Board February 14, 1996 Minutes Board Member Frame advised that he agrees with Board Member Osborne. His feelings are to wait until the Investment Advisory Board Chair and Vice Chair are present to discuss the policy. Acting Chairman Irwin stated that the Investment Policy document is an outstanding document, but is the size of a handbook. A policy is a document that should be a couple of pages in size. He advised that he reviewed the document and marked the items that should be part of the handbook and the items that should be part of the policy. He would like to see the City develop a policy and a separate handbook. The Board concurred on having a separate procedure handbook and an executive summary. Mr. Falconer advised the Board that he would work with Acting Chairman Irwin and provide the Board with an executive summary before the next meeting. C. CAFR Follow-up Answer on Miscellaneous Revenue Noted & Filed D. California Municipal Treasurers Association (CMTA) Sponsored Investment Seminar in Palm Desert. Mr. Falconer advised that those Board Members that want to attend the California Municipal Treasurers Association meeting in Palm Desert need to RSVP before February 29, 1996 VII ADJOURNMENT MOTION - It was moved by Board Members Sales/Frame to adjourn the meeting. Motion carried unanimously.