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
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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
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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
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