2007 05 09 IAB Minutes
INVESTMENT ADVISORY BOARD
Meeting
May 9. 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, Deniel (4:35), Egbert and
Rassi (4:40)
ABSENT:
None
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 requested the Book "La Quinta Legend in the Making" be
added to Board Member Items for discussion.
IV CONSENT CALENDAR
Approval of Minutes of Meeting on May 9. 2007 for the Investment Advisory
Board.
MOTION - It was moved by Board Members Moulin/Olander to approve the
minutes of May 9.2007. Motion carried unanimously.
V BUSINESS SESSION
A. Transmittal of Treasury Report for March 2007
Mr. Falconer presented and reviewed the staff report and advised that
page 3 reflects a decline in the portfolio by $26.3 million. This was due
to the semi-annual debt service payment of $6.1 million due on March 1"
and the purchase of the Mazella property located near Costco for $20.0
million. Funds from LAIF were used to purchase the Mazella property,
pay the debt service, commercial paper and U.S. Treasuries.
General discussion ensued by the Board regarding the location of the
Mazella property and development possibilities. Also discussed was the
recent annexation of property located on Washington Street to be used
Investment Advisory Board
Minutes
May 9, 2007
for Senior Housing, and Vista Santa Rosa and their desire to form a local
agency.
MOTION - It was moved by Board Members Olander/Moulil") to approve,
receive and file the Treasury Report for March 2007. Motion carried
unanimously.
B. Continued Consideration of the Fiscal Year 2007/08 Work Plan - Review
of Investment Policy
In response to Chairperson Deniel, Mr. Falconer advised the Board that
the next scheduled meeting in June, the Board will meet with the City
Manager and City Attorney to discuss the proposed policy.
Mr. Falconer asked the Board their views and consideration of the
purchase of callable Freddie Mac bonds, wherein the call dates have
already expired. The industry considers this type of bond a "bullet."
Further discussion regarding the bond ensued, with the Board agreeing
that these types of purchases were acceptable.
Chairperson Deniel requested that Staff email the Board the final redlined
draft of the Investment Policy for one last final review.
In response to Board Member Moulin, Mr. Falconer advised that new
auditors have not yet reviewed the City's Investment Policy, and
therefore, have no comments at this time.
MOTION - It was moved by Board Members Moulin/Olander to continue
the discussion of the Fiscal Year 2007/08 Work Plan Investment Policy to
the June meeting. Motion carried unanimously.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A . Month End Cash Report and other selected Financial Data - April
2007
Mr. Falconer advised that the LAIF percentages were up to 5.21 % and
there were no additional changes in investments to report.
Mr. Falconer updated the Board on the CMT A conference in Long Beach,
California that was attended by Mr. Falconer and Board Member Rassi.
2
Investment Advisory Board
Minutes
May 9, 2007
Mr. Falconer stated that during the State Treasurers presentation he
advised everyone the new term currently being used at the State Capital
is the word "Green."
Noted and Filed
B. Pooled Money Investment Board Report - February 2007
Noted and Filed
VII BOARD MEMBER ITEMS
General discussion ensued among the Board regarding the book "La Quinta
Legend in the Making."
Additional discussion ensued among Staff and the Board regarding the CMTA
Conference. Mr. Falconer stated that one of the Keynote Speakers was the
author of "Chicken Soup for the Soul," in addition to the State Treasurer, who
spoke of his background and his thoughts about his current term in office.
VIII Adjournment
MOTION - It was moved by Board Members Egbert/Olander to adjourn the
meeting at 5:05 p.m. Motion carried unanimousl,y.
~
Vianka Orrantia
Secretary
3