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2005 05 11 IAB Minutes INVESTMENT ADVISORY BOARD Meeting May 11, 2005 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 Lewis, followed by the Pledge of Allegiance. PRESENT: Chairman Lewis, Board Members Olander, Deniel and Mahfoud (5:44) ABSENT: Board Member Moulin OTHERS PRESENT: John Falconer, Finance Director; Vianka Orrantia, Secretary II PUBLIC COMMENTS - None III CONFIRMATION OF AGENDA - (This is the time set aside for public comment on any matter not scheduled on the agenda.) IV CONSENT CALENDAR A. Approval of Minutes of Meeting on April 13, 2005 for the Investment Advisory Board. Board Memoer Olander advised the Board that due to his absence at the previous meeting he was unable to make a motion to adjourn. Therefore a correction needs to be made on page 5 of the minutes. Chairman Lewis requested that the Board advise Staff of any grammatical corrections and/or changes to the minutes prior to the Board meeting. Board concurred. MOTION - It was moved by Board Members Olander/Deniel to approve the Minutes of April 13, 2005 as corrected. Motion carried unanimously. V BUSINESS SESSION A. Transmittal of Treasury Report for March 2005 Mr. Falconer informed the Board that the cash balance was reduced by approximately $8 million due to a bond debt service. Mr. Falconer also informed the Board that page 8 reflects several Treasury bills which were purchased at the end of March placing several at a 3 % yield and Investment Advisory Board Minutes May ·11, 2005 Board Member Deniel suggested under item XIX, second sentence should read: The investment portfolio managers will be ap~roved by City Council based upon a request for proposal process as outlined in Appendix H &-f. And Appendix I referenced in the fourth sentence and it will read: Such managers may be granted the discretion to purchase and sell investment securities in accordance with this Investment Policy as outlined in _. Board concurred. Board Member Mahfoud stated that page 1 7, top of the page, it references errors and omissions and insurance, and does the City require a certain dollar amount. Mr. Falconer replied to the Board that the City has a certain standard contract form which outlines what the insurance requirements are and the amount that needs to be maintained. The amount is usually $1 million. Mr. Falconer asked the Board if they should mention that the City will maintain custody of the account. Chairman Lewis replied that the investment policy specifically states that all securities are DVP third party custodian and this is not waived at any point in time. MOTION - It was moved by Board Members Mahfoud/Deniel to continue the review of the Fiscal 2005/06 Investment Policies. Motion carried unanimously. VI CORRESONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - April 2005 Noted and Filed B. Pooled MoneyJnvestment Board Report - February 2005 Chairman Lewis asked what an AB55 Loan is mentioned in the February PIMA Report. Mr. Falconer replied that they are loans used to temporarily construct prisons until the permanent financing comes through. Noted and Filed 3 Investment Advisory Board Minutes May 11, 2005 VII BOARD MEMBER ITEMS Board Member Mahfoud advised the Board that he will not be in attendance at the next scheduled Board meeting. Mr. Falconer advised the Board that ,the next scheduled meeting on June 8th will be held and adjourned for a lack of a quorum and a special meeting will be held on June 15th. VIII ADJOURNMENT MOTION - It was moved by Board Members Olander/Deniel to adjourn the meeting at 6:45 p.m. Motion carried unanimously. Vianka Orrantia Secretary ******************** NEXT MEETING JUNE 15, 2005 ******************** 4