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1997 02 12 IAB Minutes INVESTMENT ADVISORY BOARD Meeting February 12, 1997 I CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called t° order at the hour of 5:30 P.M. by Chairwoman Brown, followed by the Pledge of Allegiance. PRESENT: Board Members Irwin, Osborne, Sales and Chairwoman Brown ABSENT: Board Members Frame, Lewis and Rodriguez OTHER PRESENT: John Falconer, Finance Director and Debbie DeRenard, Secretary II CONFIRMATION OF AGENDA - Confirmed III PURLIC COMMENT- N/A IV CONSENT CALENDAR A. Approval of Minutes of Meeting on January 15, 1997 for the Investment AdVisory Board. MOTION - It was moved by Board Members Irwin/Sales to approve the minutes of January 15, 1997 as submitted. Motion carried unanimously. V BUSINFSS SESSION A. Transmittal of Treasury Report for December 31, 1996 Mr. Falconer advised that the title change requested by Board Member Lewis was reflected on the Treasury Report. MOTION - It was moved by Board Members Irwin/Sales to Review, Receive and File the Treasury Report for December 31, 1996. Motion carried unanimously. .' Investment Advisory Board February 1 2, 1997 Minutes VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report- January 1997 Noted and Filed. B. City of La Quinta FY 95~96 Audited Financial Statements Mr. Falconer presented the staff report and advised that last year, Ken AI- Iman with Conrad and Associates was present at the meeting last year to answer any questions for the Board. This year the Financial Statements were issued to the Board, and Staff is prepared to answer any questions. In response to Board Member Irwin, Mr. Falconer advised that the audit letter is addressed to the City Manager and the City Council. Mr. Falconer advised the Board that City Staff will have a Cash-Flow meeting the first week of March and the RFP's for Audit Services will be discussed. Conrad and AssoCiates had a 3-year contract with the City that expires this year. In response to Board Member Sales, Mr. Falconer advised that on Page 29, second paragraph, it reads "City employees who retire at or after age fifty, with five years of credited service are entitled to an annual retirement benefit, payable monthly for life, in an amount equal to the average monthly pay rate for the last twelve consecutive months." This paragraph should include a percentage rate payable at retirement. He further advised that he will clarify this with the Auditors. Board Member Irwin advised that most of the Board Members have CPA degrees, and it is hard to get a general sense out of the combined financial statements. In response to Board Member Sales, Mr. Falconer advised that there are different costs to the audit. He advised that he would have the cost of the audit at the March meeting. Mr. Falconer advised that there are very few qualified auditing agencies for municipalities. He further advised that he would agendize the Auditing RFP for the March meeting. Investment Advisory Board February 1 2, 1 997 Minutes In response to Board Member Sales, Mr. Falconer advised that the fixed assets are expended and recorded. A firm is normally hired every five years to do a physical inventory and the records are adjusted to the actual inventory. Portable assets are tagged and tracked. C. Local Agency Investment Fund (LAIF) Independent Auditor's Report Noted and Filed. D. Pooled Money Investment Board Report November 1996 and Summary of Investment Data as of December 1996 Board Member Irwin advised that LAIF is cleaning up their act, but they are still investing in vehicles that are not permitted by the City policy. Board Member Osborne advised that there are investments that are not permitted by the City, but compared to the size of the LAIF balance, the investments are less than 5%. In response to Board Member Irwin, Mr. Falconer advised that at this point in time, the City does not want an account with a brokerage firm. At the present time, investments are delivery vs. payment and documents are held at the bank. One of the items that is being investigated by Staff is the Money Market account. Currently in a Money Market account, six transactions are permitted per month. Previously, when the City banked with First Interstate, they interpreted the law differently. Wells Fargo has reinterpreted the law and has notified the City that the City has exceeded the six transactions. Staff is considering discussing with Wells Fargo the merger of the Checking and Money Market Accounts into a single Checking Account with an overnight sweep into a T-bill type of account. In response to Board Member Sales, Mr. Falconer advised that this type of account is an option for the City. Board Member Irwin advised that CVAG recently reduced their LAIF percentage to 35%. Board Member Osborne advised that he would not be opposed to reducing the LAIF percentage to 35%. The City has been less than 30% for months. The Board concurred on reviewing LAIF during the next Investment Policy review. Investment Advisory Board February 12, 1997 Minutes E. Boards/Commissions Handbook Mr. Falconer' presented the Staff Report advising that the handbook has information that will be useful to the Board. He further advised that Section No. 6 -"General Duties/Rules of Procedure/Guidelines of Commissions, Boards and Committees" is a very .helpful section for the Board. In response to Board Member Sales, Mr. Falconer advised that the City Clerk maintains the economic interest's statement. He further advised that they are open to the public for review. In response to Board Member Sales advised that in the handbook it states that the recording tapes are to be destroyed after the meeting. Mr. Falconer advised that the handbook states, "Upon approval of minutes at which a recording device was used, the sound recordings shall be held/destroyed in accordance with the City's Records Retention Policy. Ms. DeRenard advised that she thought the City's Records Retention Policy called for the tapes to be held for two (2) years, but that she would review the Policy and bring the information back to the Board. Board Member Sales advised that the Handbook also states that the tapes are to be used for no other purpose except the preparation of the minutes. Chairwoman Brown advised that she could not request a copy of the tape. She further advised that it is her understanding that the tapes are accessible to anyone. In response to Board Member Sales, Mr. Falconer advised that he would have to direct this question to the City Clerk for clarification. Board Member Sales advised that it's pretty clear to him. Board Member Sales advised that the Board discussed detailed vs. summary minutes. The handbook discusses ~summary minutes on Page 17 and detailed minutes on Page 18. He questioned the type of minutes that are required. Investment Advisory Board February 1 2, 1 997 Minutes Mr. Falconer advised that he would refer the question to the City Clerk for clarification. Board Member Osborne questioned if the Board approved of the type of minutes that Staff is preparing for the Board. In response to Chairwoman Brown, Ms. DeRenard advised that the types of minutes being produced for the Board are summary minutes. Mr. Falconer advised that contact with City Council to discuss problems are neither encouraged nor discouraged. He further advised that if a Board Member is going to appear before the City Council and speak regarding an individual matter, they need to make it clear that their opinion is not the opinion of their respective Board/Commission. Chairwoman Brown advised that each Board Member should read the section on Page 24, which states, "Contact with the City Council or appointing authority should always be open and never used to circumvent the staff or fellow commission, board or committee members." Board Member Sales advised that it depends on how you define "circumvent." Board Member Irwin stated that he will cheerfully circumvent the Members of this Board or the Board itself if he thinks its necessary. He further advised that he has already discussed this with Staff. Chairwoman stated that she feels it's not an interpretation, it is clearly there. She further advised that on Page 23, Section 5; it clearly states "Establish a good working relationship with fellow members of your commission, board or committee, the City Council, and your staff liaison." She further advised that in her opinion there are many ways to accomplish a goal and if the Board can work together goals can be accomplished. Board Member Irwin advised that when the Handbook was first distributed, he read Page 24, No. 3 the same, but Staff has advised him that as long as every Board Member of the Board was aware of his intentions, then there was not a problem. Board Member Osborne advised that he agrees, that if every Board Member knows how a Member is going to proceed, then it's not a problem. Investment Advisory Board February 12, 1997 Minutes Chairwoman Brown further advised that she would hope that any Board Member who contacts a City Council Member would have the courtesy to notify the Finance Director of his/her intentions. Chairwoman Brown thanked City Staff for the Board/Commissions Handbook advising that it's a very helpful tool. In response to Board Member Sales, Mr. Falconer advised that the Ordinance for residency requirements for the Board takes precedence over the Handbook. VII BOARD MEMBER ITEMS - None VIII ADJOURNMENT MOTION - It was moved by Board Members Irwin/Sales to adjourn the meeting. Motion carried unanimously.