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2002 07 10 IAB Minutes INVESTMENT ADVISORY BOARD Meeting July 10, 2002 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 Mahfoud, followed by the Pledge of Allegiance. PRESENT: Board Members Moulin, Olander, and Chairman Mahfoud, Board Member Felice (via videoconference) ABSENT: Board Members Osborne, Lewis and Mortenson OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia, Secretary II APPOINTMENT OF OFFICERS A. Appointment of Investment Advisory Board Chairperson Chairman Mahfoud opened nominations for Chairperson. Board Member Moulin nominated Chairperson Mahfoud for reappointment. Chairperson Mahfoud closed nominations for Chairperson MOTION - It was moved by Board Members Moulin/Olander to appoint Chairperson Mahfoud for a second term. Motion carried unanimously. B. Appointment of Investment Advi.~;ory Board Vice Chairperson Chairman Mahfoud opened nominations for Vice Chairperson. Board Member Moulin nominated Board Member Olander. Investment Advisory Board July 10, 2002 Minutes Chairperson Mahfoud closed nominations for Vice Chairperson. MOTION - It was moved by Board Member Moulin/Mahfoud to appoint Board Member Olander for Vice Chairman. Motion carried unanimously. III PUBLIC COMMENT - (This is the time set aside for public comment on any matter not scheduled on the agenda.) IV CONFIRMATION OF AGENDA V. CONSENT CALENDAR A. Approval of Minutes of Meeting on June 12, 2002 for the Investment Advisory Board. MOTION - It was moved by Board Members Moulin/Olander to approve the minutes of June 12, 2002. IVlotion carried unanimously. VI BUSINESS SESSION A. Transmittal of Treasury Report for May 2002 In response to Board Member Moulin, Mr. Falconer advised the Board that on page 007, in reference to the comments on major changes and cash flow that the revenues received were the second half of the property tax increment installment, in the month of May. This balance caused an increase in the City's cash balance, and is reflected in changes over $121/2 million. Mr. Falconer also advised the Board that in the month of June, the City purchased the Ranch property and bonds were issued. The project will be going to Council at the next scheduled council meeting to select the designer. Mr. Falconer stated to the Board that the overall interest rate on the bonds recently issued, currently were at 5.1% and the term of the bonds is thirty years. In response to Board Member Moulin, Mr. Falconer advised the Board that due to the receipt of: monies from the County at the end of May, the bulk of the funds were placed into Mutual Funds and will be placed into commercial paper by the following month. Mr. Falconer advised the Board that on page 009, the average maturity was lengthened in the month of May. 2 Investment Advisory Board July 10, 2002 Minutes MOTION - It was moved by Boar.d Members Olander/Moulin to review, receive and file the Treasurer's Fleport for May 2002. Motion carried unanimously. B. FY 2002/2003 Meeting Schedule Mr. Falconer advised the Board that due to the LAIF Conference, that the scheduled September meeting be changed from September 11 th to September 18th. Board Member Moulin suggested to the Board that for the month of August that the Board goes dark. Board concurred. MOTION - It was moved by Board Members Moulin/Olander to continue to meet on a monthly schedule with the Board going dark for the month of August, with the exception of the September meeting, which will be rescheduled from the 11'htothe 18,h. Motion carried unanimously. C. Consideration of Approval of Investment Advisory Board 2002/2003 Work Plan Chairman Mahfoud suggested to the Board that GSE's should be reviewed in the month of December or January, along with LAIF. Board Member Moulin suggested 1:hat Commercial Paper be added to the review. MOTION - It was moved by Board Members Moulin/Olander that the 2002/2003 Work Plan consist of the review of GSE's, LAIF and Commercial Paper. Motion carried unanimously. D. LAIF Conference Mr. Falconer advised the Board that an agenda has not been released, but Mr. Falconer was able to receive a tentative outline for the conference from Elaine Parks of L.AIF. Mr. Falconer advised the Board that two Board Members and one, Staff member are budgeted to attend conference subject to Council review. Investment Advisory Board July 10, 2002 Minutes Chairman Mahfoud volunteered to attend the conference only if there were no other Board Members interested. Board Member Olander also volunteered. MOTION - It was moved by Board Members Moulin/Felice authorizing two Board Members, Chairman Mahfoud and Board Member Olander, to attend the conference subject to council approval. Motion carried unanimously. VII CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report In response to Chairman Mahfoud, Mr. Falconer advised the Board that the Police Department under spent a $1 million due to the delay of submittal of their invoices. Mr. Falconer also informed the Board that the Public Works Department has not started a few of their projects due to current vacancies within their department. Noted and Filed B. Pooled Money Investment Board Reports - April 2002 As a follow-up to Board Member Lewis' request at the June meeting regarding loans, Mr. Falconer informed the Board that he received a call from Mr. Spitler of the State Treasurer's office, regarding limited restrictions for general fund loans. Mr. Falconer stated that the PMIA Report, listed on page 2, indicates a total portfolio of $50 billion, of which LAIF is a portion of this amount, approximately $20 billion. Mr. Spitler stated that there is no set percentage, the loans vary between $9 and $12 billion a month which are borrowed by the general fund to meet its cash needs. Mr. Spitleralso stated that an analysis was done several years ago that went through the various funds the Treasurer maintains and through this analysis it identifies funds that can be borrowed against and funds that cannot be borrowed against LAIF. LAIF is a fund that cannot be borrowed against. Mr. Falconer also advised the Board that LAIF has dropped about thirty basis points in the last week, whiich currently brings it to 2.58% rate. Noted and Filed Investment Advisory Board July 10, 2002 Minutes C. Distribution of Investment Policies for Fiscal Year 2002/2003 Board Member Moulin advised th(; Board that one Council Member was not comfortable about policy due to the continued investment of LAIF at 20%, but the policy was unanimously approved. Noted and Filed VIII BOARD MEMBER ITEMS Board Member Moulin stated that at the Council Meeting, that Council Member Henderson was not satisfied with the interview process for all commissions and boards and Council Member Henderson suggested that the Council select the Chairman for each board and commission. Mr. Falconer stated that the past practice is for the board and/or the commission to select a chairperson. General discussion ensued regarding the selection process of the Investment Advisory Board. IX. ADJOURNMENT MOTION - It was moved by Board Members Moulin/Olander to adjourn the meeting at 6:32 p.m. Motion carried unanimously. Submitted by, / / Vianka Orrantia Secretary