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1998 07 08 IAB Minutes INVESTMENT ADVISORY BOARD Meeting July 8, 1998 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 Chairperson Irwin, followed by the Pledge of Allegiance. PRESENT: Board Members Bulgrin, Lewis, Mahfoud, Moulin, Osborne and Acting Chairperson Irwin ABSENT: Board Member Brown Mr. Falconer introduced newly appointed Board Members Cyrille Mahfoud and Don Moulin. II APPOINTMENT OF OFFICERS Board Member Moulin advised that the position should go to a Board Member who has been on the Board, he felt that he shouldn't be considered. Acting Chairperson Irwin opened the nominations for the position of Chairperson. Board Members Osborne/Lewis nominated Board Member Irwin for the position of Chairperson. MOTION - It was moved by Board 'Members Lewis/Bulgrin to close nominations and appoint Board Member Irwin as the Chairperson. Motion carried unanimously. Chairperson Irwin opened nominations for the position of Vice Chairperson. Board members Lewis/Bulgrin nominated Board Member Osborne for the position of Vice Chairperson. MOTION - It was moved by Board Members Lewis/Bulgrin to close nominations and appoint Board Member Osborne as the Vice Chairperson. Motion carried unanimously. Investment Advisory Board July 8, 1998 Minutes III CONFIRMATION OF AGENDA Mr. Falconer. advised that an amended copy of the minutes from the June 10, 1998 meeting has been added to the Agenda. IV PUBLIC COMMENT None V CONSENT CALENDAR A. Approval of Minutes of Meeting of June 10, 1998 for the Investment Advisory Board. Board Member Moulin advised that the minutes need to reflect Thomas Genovese and' Dawn Honeywell as present at the June 10, 1998 meeting. He further advised that the dates on pages 2 and 3 should be changed to the meeting date. In response to Board Member Moulin, Chairperson Irwin advised that he voted NO on the investment policy due to his opinion on LAIF. MOTION - It was moved by Board Members Lewis/Bulgrin to approve the minutes as corrected. Motion carried with Board Member Moulin abstaining. VI BUSINESS SESSION A. Transmittal of Treasury Report for May 31, 1998 Board Member Moulin questioned why the bank account has a book overdraft in the checking account and why it's larger now then it has ever been. He further questioned what causes the overdraft. Mr. Falconer advised that outstanding warrants are usually the cause of the overdrafts. Investment Advisory Board July 8, 1998 Minutes Board Member Osborne explained that the City has a "Sweep Account". The general checking account as of any one day and all checks processed as of that day could have a large negative balance because the monies in the sweep account have not been transferred into the general account until they are needed by the bank. In response to Board Member Moulin, Mr. Falconer advised that the sweep account and the balance is listed on the Treasurers Report. In response to Board Member Moulin, Mr. Falconer advised that the City has next day funds available. He further advised that this is effective cash management. In response to Chairperson Irwin, Mr. Falconer advised that the City has had the Sweep Account for approximately one year and it works well for the City. Board Member Osborne commented on the point spread that the City currently has, further advising that the diversification appears to be working well. In response to Board' Member Moulin, Mr. Falconer advised that the purpose of the Reconciliation of Actual and Surplus Funds Report is to track the surplus funds and make sure that the percentages are not exceeded in investments. Surplus funds are described as any funds that are not required to be spent in the next 7 days. MOTION - It was moved by Board Members Osborne/Lewis to review, receive and file the Treasurers Report dated May 31, 1998. Motion carried unanimously. B. Meeting & Time Schedule for Fiscal Year 1998/99 Mr. Falconer advised that the City Council took action at their June 23, 1998 Special Meeting and changed the meeting time for the Investment Advisory Board from 7:00 P.M. to 5:30 P.M. Investment Advisory Board July 8, 1998 Minutes Chairperson Irwin advised that the Investment Advisory Board is only required to meet once a quarter per the Ordinance. The Board has been meeting monthly and in the past the Board has tended to go dark in August. Mr. Falconer advised that historically the Board has been dark in the months of August and December. In the middle of last year, the Board decided to meet on a month-to-month basis. Chairperson Irwin advised that under the Ordinance it states that the purpose of the Investment Advisory Board is to monitor, advising that it would be hard to monitor if the Board met quarterly. Board Member Moulin advised that Section 19 of the Investment Policy states that the Board will meet monthly. He further advised that the Ordinance states that the Board can meet quarterly since the Board just adopted an Investment Policy that states they will meet monthly, its his feeling to meet monthly. He further advised that he agrees to go dark in August and possibly December. Board Member Osborne advised that he would prefer meeting monthly. He further advised that he would like to keep a close watch on LAIF and the other issues that are 'before the Board. Board Member Lewis and Bulgrin both were in agreement with meeting monthly. Board Member Moulin advised that the Staff Report indicates a meeting on October 13, 1998 and it should be October 14, 1998. MOTION - It was moved by Board Members Lewis/Bulgrin to have the Investment Advisory Board. go dark for the month of August, 1998. Motion carried unanimously. MOTION - It was moved by Board Members Lewis/Osborne to approved the amended monthly schedule for the Investment Advisory Board. Motion carried unanimously Investment Advisory Board July 8, 1998 Minutes VII CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report -June, 1998 Chairperson Irwin advised that this report is presented to give the Board a report for the current month ending. It is not intended to give detail. B. Distribution of Investment Policies for Fiscal Year 1998/99 Board Member Moulin advised that he has questions regarding the Investment Policy that he planned on discussing under Board Member Items. He further advised that upon receiving the previous Investment Policy he noticed items that need clarification. Chairperson Irwin advised that this' could be discussed under Board Member items. Mr. Falconer advised that a LAIF Answer Book was included in the agenda packets for the new Board Members. VIII BOARD MEMBER ITEMS Board Member Moulin advised that he has questions regarding the type of investments (Fannie Mae) and Section XIX in the Investment Policy. He further questioned if the Board would want to wait until next April 1999 to review/change the policy or could it be placed on the agenda earlier. Mr. Falconer advised that it would be Staffs recommendation to place the Investment Policy on the next agenda. After further discussion, the Board agreed that the Investment Policy needs to be discussed and placed on the agenda in September 1998. XV ADJOURNMENT MOTION - It was moved by Board Members Moulin/Bulgrin to adjourn the meeting at 6:25 PM. Motion carried unanimously.