2000 07 12 IAB Minutes INVESTMENT ADVISORY BOARD
Meeting
July 12, 2O0O
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 Osborne, followed by the Pledge of Allegiance.
PRESENT: Board Members Filice, Irwin, Lewis, Mahfoud(5:32),
Moulin, Olander and Chairman Osborne
ABSENT: None
OTHERS PRESENT: John Falconer, Finance Director and Debbie DeRenard,
Secretary
II APPOINTMENT OF OFFICERS
A. Appointment of Investment Advisory Board Chairperson
Chairman Osborne opened nominations for Chairperson.
Board Member Moulin nominated Chairperson Osborne for
reappointment.
Chairperson Osborne closed nominations for Chairperson
MOTION - It was moved by Board Members Moulin/Irwin to appoint
Chairperson Osborne for a second term. Motion carried unanimously.
B. Appointment of Investment Advisory Board Vice-Chairperson
Chairperson Osborne opened nominations for Vice Chairperson.
Board Member Irwin nominated Board Member Moulin.
Board Member Moulin declined the nomination.
Board Member Lewis nominated Vice Chairperson Mahfoud for a second
term.
Investment Advisory Board July 12, 2000
Minutes
Chairperson Osborne closed nominations for Vice Chairperson.
MOTION - It was moved by Board Member Lewis/Olander to appoint
Vice Chairperson Mahfoud for a second term. Motion carried
unanimously.
III PUBLIC COMMENT- None
IV CONFIRMATION OF AGENDA - Confirmed
V CONSENT CALENDAR
A. Approval of Minutes of Meeting on June 7, 2000 for the Investment
Advisory Board.
Board Member Moulin advised that on page 5, 3rd and 4th paragraph, the
word de facto is misspelled.
MOTION - It was moved by Board Members Lewis/Moulin to approve the
Minutes of June 7, 2000 as corrected. Motion carried unanimously.
VI BUSINESS SESSION
A. Transmittal of Treasury Report for May 2000
In response to Chairman Osborne, Mr. Falconer advised that the City is
investing it's portfolio paper for a longer period - 200 days. The yields
for new investments look better than the maturing investments. He
advised that in the month of May, the second installment of the property
tax settlement was received and was invested in commercial paper.
In response to Board Member Mahfoud, Mr. Falconer advised that the
City invested four million in commercial paper as a result of changes in
the Investment Policy in the month of July. The City invested for 30
days and the yields were approximately 6.50%.
investment Advisory Board July 12, 2000
Minutes
In response to Board Member Irwin, Mr. Falconer advised that he
invested two million in General Electric, one million in Bell Atlantic and
one million in Salomon Smith-Barney Commercial Paper.
In response to Board Member Lewis, Mr. Falconer advised that the cash
flow analysis projections for TOT taxes are always lower in July and
August. The projections for sales tax are calculated and spread over a
twelve month period.
In response to Board Member Irwin, Mr. Falconer advised that the City
will soon start to receive sales tax revenue from the new car
dealerships. He further advised that sales tax from vehicle leases is
received separately. He advised that as an example, Simon Motors
(GMAC) is pooled at the State and the State Board of Equalization
allocates the funds using a pooled formula. He further advised that the
City does not have the formula that is used to allocate the funds.
In response to Board Member Olander, Mr. Falconer advised that the
City is forbidden to comment on specific dealerships by law, however
he advised that the City has projected sales tax revenues of $250,000
for the Automall for the first year.
In response to Board Member Moulin, Mr. Falconer advised that the
Treasurers Reports is based on the month of May. He further advised
that the amounts will change according to the changes in the Investment
Policy.
MOTION - It was moved by Board Members Lewis/Irwin to review,
receive and file the Treasurers Report for May 2000. Motion carried
unanimously.
B. Fiscal Year 2000/2001 Meeting Schedule
Board Member Lewis advised that he would like to continue meeting
monthly with the exception of the month of August. He further advised
that the Board has always been dark in August.
Board concurred.
Investment Advisory Board July 12, 2000
Minutes
MOTION - It was moved by Board Members Lewis/Moulin to continue to
meet on a monthly schedule with the Board going dark for the'month of
August. Motion carried unanimously.
C. Workplan for Fiscal Year 2000/01
In response to Board Member Moulin, Mr. Falconer advised that Staff
would like further direction for the meeting in September. He further
advised that Staff has included the internal controls that are currently in
effect for the investment activities.
Board Member Irwin advised.that the Government Sponsored Enterprise
(GSE's) is a very in-depth item and will require a lot of time. He
suggested that consolidated financial statements from the Federal Home
Loan Board and Fannie Mae be included in the September agenda
packet.
Board Member Moulin advised that as the Board approaches the review
of the GSE's, he suggested reviewing the GSE's in an analytical sense.
Board Member Irwin advised that some analytical work needs to be
done, specifically on the financials. He further advised that the Federal
Home Loan Board and Fannie Mae are becoming political issues.
Board Member Lewis advised that this item was agendized to gather
more information for Staff to bring back to the meeting in September.
Chairman Osborne requested that each Board Member supply a list of
investments that they feel is a risk for the City. He also requested that
each Board Member supply Staff with information for the September
Agenda packet that would be helpful to the Board.
In response to the Board, Mr. Falconer advised that the list of internal
controls that was attached to the Staff Report is for the Board's review.
MOTION - It was moved by Board Members Moulin/Olander to approve
the 2000/2001 Workplan. Motion carried unanimously.
Investment Advisory Board July 12, 2000
Minutes
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report- June 2000
Noted and Filed.
B. Pooled Money Investment Board Reports - April 2000
Noted and Filed.
C. Distribution of Investment Policies for Fiscal Year 2000/2001
Noted and Filed.
VII BOARD MEMBER ITEMS - None
VIII ADJOURNMENT
MOTION - It was moved by Board Members Lewis/Moulin to adjourn the
meeting at 6:15 p.m. Motion carried unanimously.
Submitted by,
Debbie DeRenard
Secretary