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2010 02 10 IAB MinutesINVESTMENT ADVISORY BOARD Meeting February 10, 2010 CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 4 p.m. by Chairman Ross followed by the Pledge of Allegiance. PRESENT: Board Members Moulin, Ross, and Park ABSENT: Board Member Rassi OTHERS PRESENT: John Falconer, Finance Director and Angela Guereque, Senior Secretary II PUBLIC COMMENT -None III CONFIRMATION OF AGENDA Mr. Falconer provided corrected copies of Correspondence and Written Material Item B - Pooled Money Investment Board Reports for November 2009. Confirmed. IV CONSENT CALENDAR A. Approval of Minutes of Meeting on January 13, 2010 for the Investment Advisory Board. Board Member Ross requested that the following correction be made to page 2, second sentence of Business Session Item A: The portfolio activity on Page 3 reflects an increase in Leo ina€[iriEy, from 62 days to 952 days...... Board Member Ross requested that the following correction be made to page 2, third paragraph of Business Session Item A: The ma "or reason for the decrease was that ex enditures were r / p greater less... MOTION - It was moved by Board Members Moulin/Park to approve the Minutes of January 13, 2010 as amended. Motion carried unanimously. Investment. Advisory Board February 10, 2010 Minutes V BUSINESS SESSION A. Transmittal of Treasury Report for December 2009 Mr. Falconer presented and reviewed the staff report. Mr. Falconer further advised that redevelopment pass-through payments will be remitted in August each year instead of February, June, and August. Mr. Falconer thanked Board Member Moulin for the suggestion to move over the reference to notes on page 2. Chairman Ross requested that the following correction be made to page 3, sixth paragraph, .third sentence: The Treasurer plans to invest these funds in either short term Farm Credit GSE's or Federal Home Loan Bank GSE's. Mr. Falconer commented that at this time he was not comfortable in investing in Fannie Mae or Freddie Mac at this time. Board Member Park asked if any feedback had been received regarding interest rates. Mr. Falconer stated that he has received correspondence from several broker/dealers and also stated that he feels that there will be no change in the interest rate market over the next six months. Board Member Moulin requested eliminating the column "Rank" from page 5 and changing the heading for Certificates of Deposit from "Market Value" to "Cost Plus Accrued Interest." MOTION - It was moved by Board Members Park/Moulin to review, receive and file the Treasurers Reports for December 2009. Motion carried unanimously. B. Continued Consideration of Fiscal Year 2009-10 Work Plan Items and Review the 2010-11 Investment Policy Mr. Falconer advised that presented to the Board is the draft investment policy which is reviewed each year commencing in February for any changes and/or deletions. Mr. Falconer further advised that staff has no recommended changes at this time. Mr. Falconer advised that he was to report on other alternatives to LAIF and 2 Investment Advisory Board Minutes February 10, 2010 would have to do so at the next scheduled meeting. Mr. Falconer further advised that he received a letter regarding the current cash flow of the State and it was reported that the State would be in a cash decline from February to mid April, which was the reason for the alternatives to LAIF. General discussion ensued amongst the Board and staff regarding LAIF and comparable alternatives. Chairman Ross suggested that Board Members review the policy and consider changes at the next Board Meeting. Board Members concurred and Board Member Moulin made note that the glossary may need to be revised. MOTION - It was moved by Board Members Moulin/Park to continue consideration of Fiscal Year 2009-10 Work Plan items and review of the 2010- 2011 Investment Policy. Motion carried unanimously. VI CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report -January 2010 Mr. Falconer presented and reviewed the Month End Cash report advising that the LAIF balance is in line with the State. Board Member Moulin asked when the banking relationship with Wells Fargo will be reviewed. Mr. Falconer stated that the review should be done with next years Work Plan. Noted and Filed B. Pooled Money Investment Board Reports -November 2009 Mr. Falconer presented and reviewed the Pooled Money Investment Board Report for November 2009. Mr. Falconer advised the Board that the Treasurers Conference flyers will be presented at the next meeting. Noted and Filed VII BOARD MEMBER ITEMS 3 Investment Advisory Board Minutes February 10, 2010 General discussion ensured amongst the Board and staff regarding the Investment Advisory Board application process for the vacant seat. VIII ADJOURNMENT MOTION - It was moved by Board Members Park/Moulin to adjourn the meeting at 4:44 p.m. Motion carried unanimously. Subrrrifted by, ~~ Vianka Orrantia Senior Secretary 4