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2007 04 11 IAB Minutes INVESTMENT ADVISORY BOARD Meeting April 11, 2007 CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 4:30 P.M. by Vice Chairman Olander, followed by the Pledge of Allegiance. PRESENT: Board Members Moulin, Olander, and Rassi ABSENT: Board Members Deniel and Egbert OTHERS PRESENT: John Falconer, Finance Director 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 Moulin suggested that Staff bring the Board up to date on the Audit Committee and their recommendation. Mr. Falconer suggested that this item be discussed under Board Member Items. IV CONSENT CALENDAR Approval of Minutes of Meeting on March 14, 2007 for the Investment Advisory Board. MOTION - It was moved by Board Members Rassi/Moulin to approve the minutes of March 14,2007. Motion carried unanimously. V BUSINESS SESSION A. Transmittal of Treasury Report for February 2007 Mr. Falconer presented and reviewed the staff report advising the Board that the portfolio declined slightly by $5.7 million due to pass-through payments made to taxing agencies for property tax allocations, (this decline is reflected on page three of the Treasurer's report). The report also reflected a large amount of "cash on hand" which was reduced in the month of February by the debt service payment of $6.1 million. Mr. Falconer advised that the portfolio is doing well and at this time investments will remain short, due to possible interest rate hikes by the Federal Government. Investment Advisory Board Minutes April 11, 2007 General discussion ensued by the Board regarding a possible hike in the interest rates. Board Member Moulin commented on the commercial paper yield. Mr. Falconer advised that the closeness of the yields could be warranted from the credit quality of the commercial paper. General discussion ensued by the Board regarding commercial paper. MOTION - It was moved by Board Members Moulin/Rassi to approve, receive and file the Treasury Report for February 2007. Motion carried unanimously. B. Continued Consideration of the Fiscal Year 2007/08 Work Plan - Review of Investment Policy The Board agreed that the draft is ready to be submitted to Council and would continue the review to next month's meeting for one final review. Staff concurred. MOTION - It was moved by Board Members Moulin/Rassi to continue the discussion of the Fiscal Year 2007/08 Work Plan Investment Policy to the May meeting. Motion carried unanimously. VI CORRESPONDENCE AND WRITTEN MATERIAL A . Month End Cash Report and other selected Financial Data - March 2007 Mr. Falconer reported that LAIF continues to do well and their current yield is at 5.22%, along with commercial paper. In addition, Mr. Falconer reported that some of the treasury rates yields have declined slightly, as reported on page four of the Month End Cash Report. Board Member Rassi commented that as a retired sustaining member of the CMT A he is not required to pay for his registration for the annual conference. Noted and Filed 2 Investment Advisory Board Minutes April 11, 2007 B. Pooled Money Investment Board Report - January 2007 Mr. Falconer commented that page one of the Pooled Money report remains the same as prior years and that the yields have climbed substantially. Mr. Falconer advised that the City of Indian Wells currently is utilizing the CDAR's program. He also advised that the issue of the CDAR's audit confirmations was discussed with Palm Desert National Bank and these confirmations could be confirmed through one central depository and will not require confirmation through each savings and loan. Mr. Falconer also stated that funds wired to Palm Desert National over the FDIC limit would still be at risk for one day. Noted and Filed VII BOARD MEMBER ITEMS Board Member Moulin recapped for the Board the meetings held by the Audit Committee and their interview of the four firms, which were; Caporicci & Larson, Lance, Soli & Lunghard, LLP, Mayer Hoffman McCann P.C.., Rogers and Anderson Malody & Scott, LLP and the Committee's recommendation to Council to hire Lance, Soli & Lunghard as the City's new auditors. General discussion ensued among the Board regarding the firms, their representatives and their proposed hours and fees. Board Member Olander advised of the most recent article in regards to Fannie Mae and how the rebuilding of both Fannie Mae and Freddie Mac are slow going along with the real estate market. Board Member Moulin commented on the advertisement for new commissioners. Mr. Falconer advised that the City Clerk's office will not be sending out applications to those Board Members/Commissioners who would like to reapply for another term. The applications can be obtained either on line through the City's website or from the City Clerk's office. 3 Investment Advisory Board Minutes April 11, 2007 VIII Adjournment MOTION - It was moved by Board Members Moulin/Rassi to adjourn the meeting at 5:05 p.m. Motion carried unanimously. ~ _ SuJjmitted by 1.~ ~,~M 'J~ ( )John M. Falconer . Treasurer 4