2009 07 08 IAB MinutesINVESTMENT ADVISORY BOARD
MEETING
July 8, 2009
f 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 Chairman Ross, followed by the Pledge of
Allegiance.
PRESENT: Board Members Moulin, Olander, Ross, Rassi and Park
ABSENT: None.
OTHERS PRESENT: John Falconer, Finance Director, Vianka Orrantia, Senior
Secretary, Susan Spirtos and John Ingalls
II. APPOINTMENT OF OFFICERS
A. Appointment of Investment Advisory Board Chairperson
Chairman Ross opened nominations for Chairperson.
Board Member Moulin nominated Chairman Ross for Chairman.
Chairman Ross nominated Board Member Park for Chairman
VOTE: All Ayes for re-election of Chairman Ross.
MOTION - It was moved by the Board to close nominations and
appoint Board Member Ross as the Chairman.
B. Appointment of Investment Advisory Board Vice-Chairman
Chairman Ross opened nominations for Vice-Chairman.
Chairman Ross nominated Board Member Park as Vice-Chairman.
VOTE: All Ayes.
MOTION - It was moved by Board Members Olander/Rassi to appoint
Board Member Park as Vice-Chairman. Motion carried unanimously.
At this point in the meeting, Chairman Ross continued to chair the
meeting.
III PUBLIC COMMENTS -None. Susan Spirtos and John Ingalls attended
for informational purposes only.
IV Confirmation of Agenda -Confirmed
V CONSENT CALENDAR
A. Approval of Minutes of Meeting on June 10, 2009 for the
Investment Advisory Board.
Board Member Rassi requested that a correction be made to page
7, first sentence, changing the sentence to read:
Mr. Falconer advised that he;will investigate the waiving„ of the
X99=899 ~1r10°fo collateral "requrementnon ~nvesimenfs°sin'~ail'er
Board Member Moulin requested that the following corrections be
made to page 2, first sentence:
The portfolio maturity decreased #re+~ 15 days to 54 days, with
three higher yielding investments maturing causing the yield to
drop below 1 %, with the overall investment portfolio :yield ending
[...]
MOTION: It was moved Board Members Rassi/Olander to approve
the minutes of June 10, 2009 as amended. Motion carried
unanimously.
VI BUSINESS SESSION
A. Transmittal of Treasury Report for May 2009
Mr. Falconer presented and reviewed the staff report advising the
Board that the May 315` portfolio balance ended at 5202.6 million
with an increase of 528.9 million in the month of May due to the
remittance of pass-through payments received from the County of
Riverside. Mr. Falconer also advised that page 7 reflects the
portfolio activity with the portfolio increasing from 26 days to 80
days due to the following: one maturing investment and
investments made with the money received from the County, with
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some of those investments in Temporary Liquidity programs,
corporate notes and commercial paper. Mr. Falconer also advised
that the portfolio yield continues to decline with the overall pooled
investments at .92%, this being the second month below 1 %.
With safety being a priority, investments continue to remain short
in six-month treasuries and recent purchase of CD's invested in
local banks totaling just under 51 million.
Mr. Falconer updated the Board on two follow-up items from the
previous meeting: 1) confirmed that the current phone numbers
listed in the investment policy and for FINRA and State
Corporations are current and, 2) Page 9 reflects additional detail on
the cash flow analysis, reflecting three additional categories,
Silverrock Fund, RCTC Fund and the Library Fund.
In response to Board Member Moulin, Mr. Falconer advised that
RCTC is an acronym for the Riverside County Transportation
Commission.
In response to Board Member Rassi's comments from the previous
meeting regarding CD's, Mr. Falconer advised that the CD's
purchased were under 5250,000 and staff did not waive any FDIC
insurance.
General discussion ensued amongst the Board regarding the CD's
yield and the waiving of the FDIC insurance and the security.
In response to Chairman Ross, Mr. Falconer advised that the
acronym TLGP will be spelled out and reflected on the next report.
General discussion ensued amongst the Board and staff regarding
the timing of the purchase of the CD's.
MOTION - It was moved by Board Members Olander/Moulin to
approve, receive and file the Treasury Report for May 2009.
Motion carried unanimously.
B. FY 2009-2010 Meeting Schedule
Chairman Ross presented the meeting schedule for the Board's
review and comments.
Mr. Falconer complemented the Board on their thorough review of
the Treasurer's Report and the investment policy and advised that
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the meeting schedule presented reflects a monthly meeting in line
with the city's ordinance but the Board has the option to go dark,
as the Council does, in the month of August. In addition, Mr.
Falconer asked the Board if they would like to consider a new
meeting time as well.
General discussion ensued amongst the Board regarding the
meeting schedule presented in addition to an alternate meeting
time. It was agreed by the Board to go dark in the month of
August, and to change the current meeting time from 4:30 p.m. to
4:00 p.m.
MOTION - It was moved by Board Members Rassi/Olander to
approve the Fiscal Year 2009-2010 meeting schedule as amended
going dark the month of August as well as changing the meeting
time from 4:30 p.m. to 4:00 p.m. Motion carried unanimously.
C. Consideration of Approval of Investment Advisory Board 2009-
2010 Work Plan
Mr. Falconer gave an overview of the work plan and suggested
that the Board consider adding to the work plan another item
identifying a money market mutual fund in addition to possibly
adding a review of the CDAR's program. Mr. Falconer advised that
the work plan will be presented to the City Council at the August
4"' meeting for their approval.
Chairman Ross stated that the City Municipal Code states that the
policy should be reviewed annually and suggested that the review
of the policy also be placed on the work plan.
General discussion ensued amongst the Board and staff as to
whether or not the review of the investment policy should be listed
as part of the work plan. Staff suggested listing the board's
function within the staff report to Council as part of the upcoming
fiscal year's work plan. Board concurred.
In response to Mr. Falconer, Chairman Ross also suggested adding
CDAR's to the work plan.
Board Member Moulin suggested adding GSE's.
General discussion ensued amongst the Board and staff in regards
to several possible work plan items.
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It was agreed upon by the Board to place the following items on
the upcoming 2009-2010 work plan:
1) Responsibilities listed in the ordinance;
2) Review of LAIF and GSE's;
3) Review of Bank CD's and
4) Consideration of CDAR's and Money Market Fund.
MOTION - It was moved by Board Members Rassi/Moulin to
approve the proposed Fiscal Year 2009-2010 Work Plan and
forward to the City Council. Motion carried unanimously.
In response to Board Member Olander, Mr. Falconer advised that
with the current budgetary issues of the state, staff was reassured
the LAIF funds cannot be accessed: Due to safety as a priority,
the Board vvas asked to consider other next day liquidity tools of
investments.
D. LAIF Conference
Mr. Falconer advised of the upcoming annual LAIF Conference in
October and further advised that Council has approved travel for
one staff member along with two Board members to attend.
General discussion ensued amongst the Board and staff regarding
this year's attendees. It was decided that the first two interested
Board members to notify staff would attend the conference.
MOTION - No motion carried.
VII CORRESPONDENCE AND WRITTEN MATERIAL
A. Month-End Cash Report and other selected Financial Data -May
2009
Mr. Falconer advised that a new column was added to page 2 to
reflect the Certificates of Deposit which currently reflect the CD
activity as of May 31, 2009. Mr. Falconer also advised that the
LAIF yields continue to decline ending the yields at 1 .26% with the
quarter-to-date at 1 %% and a decline in Treasury Bills with the
current rate at .26%, with staff purchasing 520 million in six-
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month Treasuries the first week of July with the current yields at
that time at .30% and a purchase of $25 million the end of June
with the rates at that time at .32%.
Mr. Falconer advised the Board of his conversation with the state
in regards to the portfolio loans on the enclosed staff report.
Noted and Filed
B. Pooled Money Investment Board Reports -April 2009
Mr. Falconer presented the PMIA monthly report advising that the
state's fund balance currently is at 559 billion with the previous
year's balance at 565 billion, with $20 billion of this balance
belonging to other agencies outside the state (i.e. counties, cities,
special districts...-.
Mr. Falconer advised as a follow-up to the concerns of the Board,
staff contacted LAIF in reference to the AB55 Loans and spoke
with Pam Milliron; LAIF Administrator; she advised that all AB55
Loans are current and are paying interest. In addition, Ms. Milliron
referred staff to previous emails regarding these loans, which were
previously distributed to the Board along with comments from the
State Treasurer and the Treasurer's assurance that all LAIF monies
belong to the vested agencies.
General discussion ensued amongst the Board and staff regarding
the AB55 Loans and the issuance of bonds.
Board Member Moulin advised staff that page 3 of the report
reflects the exact same numbers as in previous months and
suggested that staff contact the state to inquire as to whether the
numbers have changed.
Noted and Filed
B. Distribution of Investment Policies for Fiscal Year 2009-2010
Chairman Ross complemented staff compiling this year's
investment policy.
Noted and Filed
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VIII BOARD MEMBER ITEMS
At this time, the visitors shared their comments. Ms. Spiritos advised
the Board that she was a member of the Community Services
Commission and gained an active perspective by observing the
Board's meeting. Mr. Ingalls advised that prior to purchasing a home
in the City of La Quinta; he reviewed the City's CAFR and
complemented staff on their compilation of this report, which helped
with his decision to purchase a home in our city.
IX ADJOURNMENT
MOTION - It was moved by Board Members Moulin/Park to adjourn the
meeting at 5:25 p.m. Motion carried unanimously.
by,
,~-~~
Vianka Orrantia,
Senior Secretary
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