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1996 07 10 IAB Minutes INVESTMENT ADVISORY BOARD MINUTES July 10, 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 Chairman Lewis, followed by the Pledge of Allegiance. PRESENT: Board Members Brown, Irwin, Sales and Chairman Lewis (5:37) ABSENT: Board Member Frame, Osborne and Rodriguez OTHER PRESENT: John Falconer, Finance Director, Debbie DeRenard, Secretary and Pamela Stull, Secretary II APPOINTMENT OF OFFICERS A. Appointment of Investment Advisory Board Chairperson. Board Member Sales asked if the Board should wait until all members are present. Chairman Lewis advised that this meeting is the organizational meeting and the first items on the agenda are the elections. MOTION - It was moved by Board Member Sales/Irwin to select Board Member Brown as the Investment Advisory Board Chair. Motion carried unanimously. Board Member Lewis turned the meeting over to Chairwoman Brown. B. Appointment of Investment Advisory Board Vice-Chairperson. MOTION -It was moved by BOard Members Irwin/Lewis to appoint Board Member Sales as the Investment Advisory Board Vice Chair. Motion carried unanimously. III CONFIRMATION OF AGENDA - Confirmed Investment Advisory Board July 10, 1 996 Minutes IV PUBLIC COMMENT- N/A V CONSENT CALENDAR A. Approval of Minutes of Meeting on June 12, 1996 for the Investment Advisory Board. MOTION -It was moved by Board Members Lewis/Sales to approve the minutes of June 12, 1996. Motion carried unanimously. VI BUSINESS SESSION A. Transmittal of Treasury Report for May 31, 1996 In response to Board Member Lewis, Mr. Falconer advised that the original book value is shown on the Treasurers Report as opposed to the fair market value due to current accounting practices. He further advised that the column titled Unrealizable Gain/Loss would be used in the event that the investment is sold. Board Member Lewis advised that if the investment was sold before Maturity the City would not have the investment on the cash investments report. Mr. Falconer agreed with Board Member Lewis and advised that he would remove the column. He further advised that this information would need to be disclosed in the Treasurers Report. Board Member Sales advised that he is concerned with the Ordinance regarding the Investment Advisory Board. The Ordinance indicates that the Board should report to the City Council. He further advised that when he attended the City Council meeting, he got the impression that the City Council would like a report from the Investment Advisory Board. If the Board could generate a report every month for the City Council - it would keep the City Council posted on financial events. Mr. Falconer advised that the Finance Department can provide any report that the Board would like. The issue would be how valuable the report would be to Staff, the Board and City Council. If it's valuable to the Board, the Finance Department will work on it. Investment Advisory Board July 10, 1996 Minutes Mr. Falconer advised that the City is required to generate Financial Statements quarterly and they are generated monthly. He also advised that a Daily Cash report is generated. Board Member Irwin advised that in the last two months the City has moved large amounts of money in accounts and he would like current documentation regarding the large accounts. Mr. Falconer advised that a daily cash report is generated every day. On this report cash received and disbursed is reviewed. Board Member Irwin questioned if it would take more than 30 minutes to generate a report listing major cash and investment accounts. Mr. Falconer advised that he has been reviewing the procedures of Finance Department and a report can be generated that would show daily account balances that might be helpful to the Board. He further advised that he would prepare a staff report that provides a copy of daily cash report summary. In response to Board Member Sales, Mr. Falconer advised that an additional report can be generated to show the total cash investments, less the seven days cash disbursements. He further advised that he could also list the actual and the surplus percentages. Board Member Irwin requested a report that can be prepared before the monthly meeting that will give cash balances, market values of the t-bills, estimate of the LAIF balance and if material, the accruals. Chairwomen Brown suggested having a report that gave the Board the percentages of the investments. In response to Board Member Irwin, Mr. Falconer advised that a report can be given to the Board that will show the balance in the major bank accounts, the two LAIF accounts and the investments. MOTION -It was moved by Board Members Lewis/Sales to Accept, Receive and File the May 31, 1996 Treasury Report. Motion carried unanimously. Investment Advisory Board July 10, 1 996 Minutes B. Meeting Schedule for Fiscal Year 1996197 Board Members reviewed the Fiscal Year 1996/97 Meeting Schedule and the following motion was made: MOTION - It was moved by Board Members Sales/Lewis to cancel the August meeting and approve the monthly meeting schedule as modified. Motion carried unanimously. C. Selection of Broker/Dealer In response to Board Member Irwin, Mr. Falconer advised that Bank of America responded to the request for the Broker/Dealer selection, however, they typed their own certification without notifying the City. MOTION -It was moved by Board Members Irwin/Lewis to approve Smith Barney, Newport Beach as a City of La Quinta broker/dealer and place them on the Listing of Financial Institutions. Motion carried unanimously. VII BOARD MEMBER COMMENTS - N/A VIII INFORMATIONAL' ITEMS A. Distribution of Investment Policies for Fiscal Year 1996/97 Noted and filed. B. Workplan for Fiscal Year 1996/97 Mr. Falconer advised the Board that this item was placed on the Agenda for Staff to gather information regarding the goals for this fiscal year. The Board concurred on bringing information back to staff at the next regular Board meeting. ADJOURNMENT MOTION - It was moved by Board Members Irwin/Lewis to adjourn the meeting. Motion carried unanimously.