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2005 12 14 IAB Minutes INVESTMENT ADVISORY BOARD Meeting December 14, 2005 CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 3:00 P.M. by Vice Chairperson Deniel, followed by the Pledge of Allegiance. PRESENT: Board Members Olander, Moulin, and Deniel ABSENT: None. OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia, Secretary - Visitor: Mr. Gary Egbert II PUBLIC COMMENTS III CONFIRMATION OF AGENDA Mr. Falconer advised the Board of the Handout to be added to Item A: Budget Cash Flow Sheet. IV CONSENT CALENDAR A. Approval of Minutes of Meeting on November 9, 2005 for the Investment Advisory Board. MOTION - It was moved by Board Members Moulin/Olander to approve the Minutes of November 9, 2005. Motion carried unanimously. V BUSINESS SESSION A. Transmittal of Treasury Report for October 2005 Mr. Falconer updated the Board on the monthly activity; page 6 reflects a $9 million T -Bill roll off with a yield of maturity of 2 % which was reinvested at 4.19%, bringing the investments closer to the current yield. Investment Advisory Board Minutes December 14, 2005 Mr. Falconer informed the Board that he did draw down on LAI F funds and the balances are currently down around $15 million, from $40 million. General discussion ensued among the Board regarding the current market rates. MOTION - It was moved by Board Members Olander/Moulin to approve, receive and file the Treasury Report for October 2005. Motion carried unanimously. VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report - October 2005 Mr. Falconer informed the Board of the increasing rise of LAIF rates which are currently at 3.73%. Page 5 reflects the increases, September rates were at 3.3%, the end of October rates were at 3.45% and the end of November rates were at 3.63%. Board Member Moulin stated that page 2 of the Treasury Report reflects a substantial increase; it went from $178 million to $185 million. Mr. Falconer advised the Board that $3.5 million was received from the County for a Teeter Cash Credit, this was a result of property taxes being accumulated into a fund held by the County Treasurer, which was up to $95 million total. These monies should have been distributed to the Redevelopment Agency and the City, in prior years. Interest was received on the distribution which amounted to $100,000 for the General Fund and approximately $3.3 million for the Redevelopment Agency. Another reason for the increase was the RDA's sale of the Hammer Poperty to Sam's Club. General discussion ensued among the Board regarding the Teeter Funds and the reporting and booking of funds. Noted and Filed B. Pooled Money Investment Board Reports - September 2005 2 Investment Advisory Board Minutes December 14, 2005 Mr. Falconer informed the Board that the daily portfolio is currently around $50 billion. General discussion ensued among the Board regarding current investments and possible other investments that could be used by the City. Noted and Filed VIII BOARD MEMBER ITEMS Board Member Olander read the article in the local newspaper regarding the award received by Mr. Falconer and accounting staff for financial reporting. Board Member Olander along with the other Board members extended their congratulations. Board Member Moulin asked staff about the audit? Mr. Falconer replied that Mr. Harrison will be present at the January meeting. Board Member Moulin asked if there were any changes in controls or comments affecting investments of cash. Mr. Falconer replied that there were none; just a few housekeeping issues. Mr. Falconer informed the Board that the minutes from the joint meeting with City Council were included for the Board's review. Board Member Deniel asked staff what the status was for the new Board members. Mr. Falconer replied that the submittal for the applications closes at the end of December. Mr. Falconer advised the Board that he has spoken to three potential candidates and the interview process is possibly scheduled for the first council meeting in January. Board Member Deniel asked if the Board will have a chance to review the resumes of the candidates. Mr. Falconer replied that the resumes are included the City Council agenda packet. Board Member Moulin stated that he will try to be in attendance for the interviews. Mr. Falconer advised the Board that as soon as the resumes are available they will be forwarded to the Board. VIII Adjournment MOTION - It was moved by Board Members Moulin/Olander to adjourn the meeting at 3:32 p.m. Motion carried unanimously. 3 Investment Advisory Board Minutes December 14, 2005 Submitted by, I / . ", ~ Vianka Orrantia Secretary ./ ¡ > c (t 4