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2005 09 14 IAB Minutes INVESTMENT ADVISORY BOARD Meeting September 14, 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: Board Members Lewis, Olander and Moulin ABSENT: Board Members Deniel and Mahfoud OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia, Secretary II PUBLIC COMMENTS III CONFIRMATION OF AGENDA - None. IV CONSENT CALENDAR A. Approval of Minutes of Meeting on July 13, 2005 for the Investment Advisory Board. MOTION - It was moved by Board Members Moulin/Olander to approve the Minutes of July 13, 2005. Motion carried unanimously. V. BUSINESS SESSION A. Transmittal of Treasury Report for June and July 2005 June 2005: Mr. Falconer updated the Board on the investments that matured in the month June. Mr. Falconer informed the Board that the new GASB pronouncement (regarding interest rate risks) was implemented at the end of the fiscal year, which is reflected in the June Treasurer's Report. Investment Advisory Board Minutes SEPTEMBER 14, 2005 l30ard Member Moulin stated that page 6 reflects yield for only one of the three T -Bills, which is listed under the "Summary of Activity." Mr. Falconer stated that the yield is reflected on the fiscal agent located on page 4, one of which is currently at 2.97% and the other at 3.29%. It was agreed that this should be reported as a Treasury Bills. Board Member Moulin suggested that the U.S. Government Securities title on page 5 read "U.S. Government Sponsored." Staff concurred. July 2005: Mr. Falconer updated the Board on the investments that were rolled for the month of July, which are reflected on page 17. The yield of maturity was a little over 4% and the maturing security was a little over 2.3%. Chairman Lewis advised staff that the graph on page 22 in comparison to the footnote on page 14 the annualized earnings, including the six month Treasury rate is at about 3.54%, the graph on page 22 reflects an earning at about 3.20%. Staff will verify the amounts. MOTION - It was moved by Board Members Olander/Moulin to approve, receive and file the Treasury Report for June and July 2005. Motion carried unanimously. B. Continuation of Distribution of Investment Policies for Fiscal Year 2005/2006 Mr. Falconer informed the Board that at the previous meeting in July, this item was not agendized; staff has brought this item back for the Board. There was some discussion about Appendix I and some of the language, staff researched what was adopted by the Council, and the first page is the page adopted by Council and the second page which was the page reviewed by the lAB at the July meeting. Staff has indicated the changes to be compared by the Board. Mr. Falconer stated that the comparison might answer a few of the questions asked at the July meeting. In response to Board Member Moulin, Mr. Falconer advised the Board that the portfolio manager would not be allowed to invest in LAIF. The second page of Appendix I does indicate cash as a "yes," as 2 Investment Advisory Board Minutes SEPTEMBER 14, 2005 opposed to the one approved by Council, which indicates cash as a "no." Mr. Falconer stated that there was some discussion between Chairman Lewis and Board Member Moulin at the June me~ting pertaining to some changes to Appendix I, which were made and incorporated into Appendix I for Council approval. MOTION - It was moved by Board Members Olander/Moulin to receive and file the 2005/2006 Investment Policy. Motion carried unanimously. VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - August 2005 Mr. Falconer informed the Board that the draft financial statements from the auditors shouid be received the week of September 1 9, 2005. Noted and Filed B. Pooled Money Investment Board Reports - May and June 2005 Mr. Falconer stated that the LAIF portfolio is still currently at $61 billion. Noted and Filed C. Update on Fiscal Year 2005/2006 Investment Advisory Board Work Plan Mr. Falconer informed the Board that Board Member Moulin was at the Council meeting when the work plan was approved. The City Council did ask staff about cash utilization. Board Member Moulin stated that due to the current events, this does raise a question about a back up plan for the City, is it possible to add to the work plan. Staff did concur that this was a good idea. Noted and Filed 3 Investment Advisory Board Minutes SEPTEMBER 14, 2005 VII BOARD MEMBER ITEMS Chairman Lewis informed the Board that he will not be in attendance at the October meeting and not sure if he will be in attendance at the November meeting. Chairman Lewis also informed the Board that there is a possibility he will be turning in his resignation from the Board by December. Chairman Lewis stated that in the event that he is not able to return, he thanked the Board and Staff. Mr. Falconer asked Chairman Lewis if possible can he give the City a definite date so that Council can possibly arrange some type of farewell. In response to Board Member Moulin, Mr. Falconer stated that there will be no Board members in attendance for the upcoming LAIF Conference. Chairman Lewis asked staff if the joint meeting with the City Council has been set. Mr. Falconer replied that the date has not been set. Board Member Moulin advised the Board and staff that he will not be available from October 13 through November 3, 2005. VIII Adjournment MOTION - It was moved by Board Members Moulin/Olander to adjourn the meeting at 6:00 p.m. Motion carried unanimously. 4