2010 05 12 IAB MinutesINVESTMENT ADVISORY BOARD
Meeting
May 12, 2010
CALL TO ORDER
Regular meeting of the La Quinta Investment Advisory Board was called to order at the
hour of 4:00 P.M. by Chairman Ross followed by the Pledge of Allegiance.
PRESENT: Board Members Ross,. Park and Rassi
ABSENT: Board Member Moulin
OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia, Senior
Secretary
II PUBLIC COMMENT -Andrea Spirtos -None
III CONFIRMATION OF AGENDA -
Chairman Ross advised that due to the cancellation of the previous month's
meeting, he suggested that the following items be added to the agenda:
Treasury Report for February 2010 under Business Session V, Item A; Month
End Cash Report for March 2010 under VI Correspondence and Written
Material, Item A; and Pooled Money Investment Report for January under VI
Correspondence and Written Material, Item B.
MOTION: It was moved by Board Members Park/Rassi to add the suggested
items to the agenda as amended. Motion carried unanimously.
In response to the Chairman Ross, Mr. Falconer advised that the handout in
reference to the "Money Market Refund Reform Rules," from the previous
month's meeting was for informational purposes only. In addition, Mr. Falconer
advised that the reform rule amends the state guidelines from a 90 day
disclosure to a 60 day disclosure, which would eventually affect the City's
investment policy guidelines for the money market funds.
Investment Advisory Board
Minutes
May 12, 2010
MOTION: It was moved by Board Members Park/Rassi to add the handout to
the agenda, (under Business Session itemsl, as amended. Motion carried
unanimously.
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting on March 10, 2010 for the Investment
Advisory Board.
Board Member Ross requested that the following correction be made to page 2,
Section A:
MOTION - It was moved Board members Moulin/Rassi [...1
MOTION - It was moved by Board Members Rassi/Park to approve the Minutes
of March 10, 2010 as amended. Motion carried unanimously.
V BUSINESS SESSION
A. Transmittal of Treasury Report for March 2010
Mr. Falconer advised the Board that the decline in the LAIF balance for
the month of March was due to the 523.5 million owed to the County of
Riverside as part of the state's efforts to balance their budget.
Mr. Falconer presented and reviewed the staff report for the month of
March, advising the Board that the ending balance for the month was at
5185 million with a decrease by 55 million due to the semi-annual debt
service payment that was due March 1, 2010 and the City's two major
construction projects, the new fire station as well as the city's new
corporate yard. Mr. Falconer also advised that page 7 reflects a
reinvestment of a Treasury Bill which was rolled over from .188% to
.284%, which was the only investment activity for the month of March.
He further advised that the portfolio had decreased 14 days to
approximately 172 days (a six-month average maturity) with pooled rates
remaining unchanged and market rates remaining low.
Mr. Falconer advised that with the recent payment to the County of
Riverside, and the funds paid from the LAIF account, the City can
reinvest maturing investments and excess cash back into LAIF.
Investment Advisory Board
Minutes
May 12, 2010
In response to Chairman Ross, Mr. Falconer summarized for the Board
the legal issues regarding the payment to the County of Riverside, the
notification of the payment and how the City made the payment.
General discussion ensued amongst the Board regarding the payment to
the County of Riverside and the hardship of other cities and the impact
that the hardship could possibly have on the City of La Quinta to pay for
additional projects.
In response to Board Member Rassi, Mr. Falconer summarized the Capital
Improvements tentatively scheduled for SilverRock.
General discussion ensued amongst the Board and Staff regarding the
IAB agenda process and whether or not the agenda needs to be approved
by the Chair prior to distribution. It was the consensus of the Board that
the approval by the Chair was not required.
Mr. Falconer presented and reviewed the staff report for the month of
February, advising the Board that report reflects a decrease of S5 million
due to the construction of the fire station and the Dune Palm Road
widening, in addition, he advised that there was no investment activity
for the month of February.
MOTION - It was moved by Board Members Rassi/Park to review, receive
and file the Treasurers Reports for February/March 2010. Motion carried
unanimously.
Mr. Falconer presented the handout in reference to "Money Market
Refund Reform Rules," and asked the Board if they wanted the changes
incorporated into the 2010/1 1 investment policy. Chairman Ross replied
on behalf of the Board and stated that the changes could wait and
possibly implemented upon appointment of the new board.
MOTION - It was moved by Board Members Park/Rassi to continue the
discussion of the Money Market Refund Reform Rules as they pertain to
the City's Investment Policy. Motion carried unanimously.
B. Continued Discussion of the Investment Advisory Board 2009/10 Work Plan and
Fiscal Year 2010/11 Investment Policies
The Board reviewed the attached Investment Policy and
changes/additions/deletions are shown in "strikeout" form.
Investment Advisory Board
Minutes
May 12, 2010
MOTION - It was moved by Board Members Park/Rassi to approve the
Investment Policy for Fiscal Year 2010/11 as amended subject to future
comments and suggestions made by the City Attorney and the City Manager if
any at the next scheduled meeting. Motion carried unanimously.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report -April 2010
Mr. Falconer presented and reviewed the April month end cash report advising
the Board that page 3 reflects the LAIF yields at .54% in comparison to the
City's yields at .51 %, with an overall LAIF ending balance at $69 billion.
Mr. Falconer stated that due to the state's current budget crisis, cities continue
to invest in LAIF. He further stated that there were no issues with LAIF when
he requested a withdrawal of S25 million to pay the County of Riverside $23.5
million owed.
In response to Chairman Ross, Mr. Falconer advised that if LAIF was purchasing
TLGP Bonds they are not listed as individual investments.
Mr. Falconer presented and reviewed the March month end cash report advising
the Board that page 2 reflects the adjusted cash from S 167 million to S 165
million with the LAIF yields at .54% for the month and the previous months
yields at .53% and the portfolio total at $68 billion in February and $69 billion
in March.
General discussion ensued amongst the Board and staff regarding the AB55
loans.
Noted and Filed
B. Pooled Money Investment Board Reports -February 2010
Mr. Falconer presented and reviewed the February Pooled Money Investment
Board Report.
There were no comments in reference to the February 2010 Pooled Money
Investment Board Report.
Noted and Filed
Investment Advisory Board May 12, 2010
Minutes
C. Update on California Municipal Treasurers Association Conference (CMTA)
Mr. Falconer summarized for the Board his attendance to this year's CMTA
Conference, in addition to summarizing his attendance to this year's pre-
conference presented by the CDIAC.
General discussion ensued by the Board and staff regarding municipal bonds,
municipal debt and the issuance of insurance bonds.
In response to Chairman Ross, Mr. Falconer advised that at this time the City is
not issuing any bonds.
Noted and filed.
VII BOARD MEMBER ITEMS -None.
As a general reminder,. Mr. Falconer advised the Board that all applications for the
board must be submitted to the City Clerk's office no later than May 21 s` 2010.
VIII ADJOURNMENT
MOTION - It was moved by Board Members Park/Rassi to adjourn the meeting at 5:07
p.m. Motion carried unanimously.
S mitte ,
Vianka Orrantia /
Senior Secretary