2005 11 09 IAB Minutes
INVESTMENT ADVISORY BOARD
Meeting
November 9, 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 Olander, Moulin, Deniel and Chairman
Lewis
ABSENT:
None.
OTHERS PRESENT:
John Falconer, Finance Director and Vianka Orrantia,
Secretary
II PUBLIC COMMENTS
III CONFIRMATION OF AGENDA
Mr. Falconer informed the Board of a special presentation to be made at the end
of the meeting.
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on October 12, 2005 for the Investment
Advisory Board.
Board Member Moulin advised the Board of the following correction to page
4, Section VIII, third sentence should read: Board Member Moulin advised
the Board that the accounting issue regarding Fannie Mae was largely a
dispute on how they marked to market their obligations and commitments;
these were balance sheet issues that do not affect cash flow. Freddie Mac
was deferring income to smooth variance.
Board Member Deniel advised the Board of the following correction to page
2, Item A, the third paragraph should read: Board Member Deniel stated that
on page 5, the service agent was at 3 % million in the money market, which is
invested at very low interest rate.
Investment Advisory Board
Minutes
November 9, 2005
MOTION - It was moved by Board Members Mahfoud/Olander to approve the
Minutes of October 12, 2005 as corrected. Motion carried unanimously.
V BUSINESS SESSION
A. Transmittal of Treasury Report for September 2005
Mr. Falconer informed the Board of the previous month's transactions
and investments. Page 7 reflects the activity and the reinvestments of
bond proceeds; the bond yields were higher than the maturing investment
yields. Mr. Falconer also informed the Board that he drew down $20
million in LAIF and it was reinvested in six month T-Bills, the interest
earned will be approximately 70 more basis points.
General discussion ensued among the Board regarding the upcoming
maturities and reinvestments.
MOTION - It was moved by Board Members Deniel/Olander to
approve, receive and file the Treasury Report for September 2005.
Motion carried unanimously.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - October 2005
Mr. Falconer informed the Board that LAIF is still lagging behind on the
bench mark. As stated earlier Mr. Falconer informed the Board that when
he drew down $20 million, LAIF requires an advance notice, a
representative from LAIF asked if the City was withdrawing the funds for
a higher yield and his reply to them was lIyes.1I
General discussion ensued by the Board regarding LAIF.
Noted and Filed
B. Pooled Money Investment Board Reports - August 2005
Noted and Filed
2
Investment Advisory Board
Minutes
November 9, 2005
VIII BOARD MEMBER ITEMS
In reference to Board Member Lewis' resignation, Board Member Oeniel
presented to Mr. Tom Lewis a plaque from the City Council in appreciation of
his dedication and commitment to the Investment Advisory Board from 1993 to
2005.
Chairman Lewis briefed the Board on the joint meeting with the City Council and
one of the items of discussion was a money manager.
General discussion ensued among the Board regarding the joint meeting with
City Council and the use of a money manager.
VIII Adjournment
MOTION - It was moved by Board Members Olander/Moulin to adjourn the
meeting at 6:00 p.m. Motion carried unanimously.
Submitted by,
/"
~ ,," ¡,
Vianka Orrantia
Secretary
3