2007 03 14 IAB Minutes
INVESTMENT ADVISORY BOARD
Meeting
March 14.2007
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 Chairperson Deniel, followed by the Pledge of Allegiance.
PRESENT:
Board Members Moulin, Olander, Deniel, Rassi and Egbert
ABSENT:
None
OTHERS PRESENT:
John Falconer, Finance Djrector and 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.)
Board Member Olander requested that the article from The Wall Street Journal
be added to Board Member items for discussion.
IV CONSENT CALENDAR
.
Approval of Minutes of Meeting on February 14. 2007 for the Investment
Advisory Board.
In response to Board Member Olander, Mr. Falconer clarified that Council
Member Osborne suggested that a local CPA sit on the RFP Audit Committee
and volunteered his audit partner with Council approval. Mr. Falconer also
clarified that there would only be a conflict if Councilmember Osborne's firm
responded to the RFP.
MOTION - It was moved by Board Members Moulin/Olander to approve the
minutes of February 14. 2007. Motion carried unanimously.
V BUSINESS SESSION
A. Transmittal of Treasury Report for January 2007
Mr. Falconer presented the Staff report and advised that page two
reflects a significant cash increase and page three clarifies the increase
which was due to the receipt of the first installment of property taxes
from the County, this includes redevelopment tax increment and lighting
and landscape district monies. At the end of January the City also
Investment Advisory Board
Minutes
March 14. 2007
received from the county the sales and motor vehicle in-lieu tax which
totaled $2.67 million. All monies were immediately invested; $2 million
in commercial paper and $2.6 million in LAIF.
General discussion ensued about the Federal government possibly
lowering interest rates. Also discussed was the current performance of
the portfolio and the City's benchmark.
MOTION - It was moved by Board Members Olander/Moulin to approve,
receive and file the Treasury Report for January 2007. Motion carried
unanimously.
B. Continued Consideration of the Fiscal Year 2007/08 Work Plan - Review
of Investment Policy
The Board reviewed the changes made to the policy from the previous
meeting.
General discussion ensued regarding the CDAR's program and it was the
consensus of the Board not to include the program in the 2007/08
investment policy.
Board Member Egbert advised that on page 18; first paragraph, second
sentence, the words "or advisor" should be deleted, in order to stay
consistent with the rest of the policy.
Page 34: General discussion ensued with regard to the estimated
amount to be managed by a portfolio management firm. The Board
agreed to make a change to the first paragraph, third sentence, which
should now read:
"The portfolio to be managed of the invested assets is estimateet to De
$10 million will be approximately 10% of the City's investment portfolio
net of bond proceeds."
And the dollar amount to be managed would be determined prior to the
release of the RFP.
Page 36: Chairperson Deniel suggested that the last two columns be
deleted from the table, to leave Governmental with the last two columns,
and all others would be listed as non-applicable.
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Investment Advisory Board
Minutes
March 14, 2007
MOTION - It was moved by Board Members Moulin/Egbert to continue
the discussion ofthe Fiscal Year 2007/08 Work Plan Investment Policy to
the April meeting. Motion carried unanimously.
C. Investment Advisory Board Meeting Time
As suggested at the previous meeting and with the information provided
by Staff with regard to other City Board/Commission scheduled times, it
was the consensus of the Board to change the meeting time from 5:30
p.m. to 4:30 p.m. beginning the month of April.
MOTION - It was moved by Board Members Olander/Rassi to change the
meeting time of the Investment Advisory Board from 5:30 p.m. to 4:30
p.m. Motion carried unanimously.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A . Month End Cash Report and other selected Financial Data - February
2007
Noted and Filed
B. Pooled Money Investment Board Report
Noted and Filed
VII BOARD MEMBER ITEMS
General discussion ensued among the Board regarding The Wall Street Journal
article, provided by Board Member Olander in reference to Fannie Mae.
VIII Adjournment
MOTION - It was moved by Board Members Egbert/Olander to adjourn the
meeting at 6:25 p.m. Motion carried unanimously.
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