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1999 11 10 IAB Minutes INVESTMENT ADVISORY BOARD Meeting November 10, 1999 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 Chairperson Osborne, followed by the Pledge of Allegiance. PRESENT: Board Members Bulgrin, Lewis, Moulin, Olander and Chairperson Osborne ABSENT: Board Member Irwin and Mahfoud OTHERS PRESENT: John Falconer, Finance Director and Debbie DeRenard, Secretary II PUBLIC COMMENT- None III CONFIRMATION OF AGENDA Mr. Falconer requested that Business Session Item B be discussed after Correspondence and Written Material in order to meet the schedule of the presentations by the Banks. Board concurred. IV CONSENT CALENDAR A. Approval of Minutes of Meeting on October 13, 1999 for the Investment Advisory Board. MOTION - It was moved by Board Members Lewis/Moulin to approve the Minutes of October 13, 1999. Motion carried unanimously. V BUSINESS SESSION A. Transmittal of Treasury Report for September 1999 Board Member Moulin commented on the new format style for the Treasurers Report. Investment Advisory Board November 10, 1999 Minutes Board Member Lewis advised that a small change on Page 2 - Column titled Matured could be changed to read "Matured/Reduced." Mr. Falconer advised that he spoke with Board Member Moulin regarding this and it was suggested to insert another column titled "Other." In response to Chairman Osborne, Mr. Falconer advised that the $5,592,794 was a T-note that matured and was rolled over into a mutual fund until it was reinvested. It matured on 9/30/99 and staff didn't have a chance to invest the funds. He further advised that on page 4 the balance is 7.6 million. In response to Chairman Osborne, Mr. Falconer advised 'that the investment was bond proceeds and could not be invested in LAIF. MOTION - It was moved by Board Members Moulin/Lewis to review, receive and file the Treasurers Report for September 1999. Motion carried unanimously. VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report- October 1999 Noted and Filed. B. Pooled Money Investment Board Reports - August, 1999 Noted and Filed V BUSINESS SESSION - Continued B. Request for Proposals for Banking Services Chairman Osborne commented that Board Member Irwin is not in attendance due to a conflict of interest with the banking services item. Investment Advisory Board November 10, 1999 Minutes In response to the Board, Mr. Falconer advised that four years ago the City was not satisfied with the service from Bank of America and went out to RFP for banking services and selected First Interstate Bank who was eventually bought by Wells Fargo Bank. He advised that up to a year ago he was not happy with Wells Fargo Bank, but after a change of bank staff the City is now pleased with Wells Fargo Bank. He further' advised that he checked on the references that were listed by Wells Fargo in their proposal and the references were als0 pleased with the services. At this time presentations were made' by Bank of America - 6:00 - 6:15 P.M., Union Bank of California - 6:15 - 6:30 P.M., and Wells Fargo Bank - 6:30- 6:45 P.M. Board Member Lewis commented on the FIPO charge variance with the three banks. In response to Board Member Olander, Mr. Falconer advised that he has contact with Pam Baird of Wells Fargo and she is always available within two to three hours. In response to Board Member Olander, Mr. Falconer advised that the presentations by the three banks offered the same services. He further advised that the City of Palm Springs recently switched to Bank of America by way of an RFP and are very pleased. In response to Chairman Osborne's request for staff's evaluation, Mr. Falconer advised that he felt that Union Bank was a little expensive and he rated them third. Bank of America rated second, with Wells Fargo rating first. He advised that Wells Fargo was rated first due to the quality of their service. The costs of switching banks at the present time would be substantial. He further advised that changing at the present time would be risky with the Y2K issues. Board Member Lewis advised that he was not pleased with the automatic sweep account that was offered by Bank of America. He further advised that the sweep account deals with sweeping the funds into a "repo account." According to the Investment Policy this type of account is not allowed and in order for it to be allowed the Investment Policy would have to be changed. 3 Investment Advisory Board November 10, 1999 Minutes Mr. Falconer advised that Wells Fargo offers a local branch in La Quinta. MOTION - It was moved by Board Members Bulgrin/Olander to approve the recommendation of Wells Fargo Bank and forward to the .City Council for their consideration. Motion carried unanimously. VIII BOARD MEMBER ITEMS Board Member Lewis advised that in regards to the Y2K issues, any consultants that were hired by the City for compliance reasons should be from a credible business. IX ADJOURNMENT MOTION - It was moved by Board Members Lewis/Olander to adjourn the meeting at 7:15 p.m.. Motion carried unanimously. Submitted by, Debbie DeRenard Secretary 4