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2011 01 12 IAB MinutesINVESTMENT ADVISORY BOARD Meeting January 12, 2011 CALL TO ORDER Regular meeting of the La Quinta Investment Advisory Board was called to order at the hour of 4:07 p.m. by Chairman Park followed by the Pledge of Allegiance. ,PRESENT: Board Members Mortenson, Spirtos and Blum (4:20) ABSENT: None OTHERS PRESENT:John Falconer, Finance Director and Monika Radeva, Secretary II APPOINTMENT OF OFFICERS — This item was deferred until the arrival of Board Member Blum. III PUBLIC COMMENT — None. IV CONFIRMATION OF AGENDA — Confirmed as amended. Mr. Falconer advised of the badges handed out to each board member for the upcoming Bob Hope Chrysler Classic, in addition to the resignation letter from Board Member Rassi due to his relocation. Mr. Falconer further advised that the letter was presented to the Mayor and the City Council, and due to the expiration of Board Member Rassi's term, it was the decision of the City Council to leave the position vacant until July 1, 2011. As a result of Board Member Rassi's resignation, also included on the agenda was the appointment of a Vice - Chairperson. V CONSENT CALENDAR 1. Approval of Minutes of Meeting on December 8, 2010 for the Investment Advisory Board. MOTION - It was moved by Board Members Mortenson / Spirtos to approve the Minutes of December 8, 2010. Motion carried unanimously. Investment Advisory Board January 12, 2011 Minutes VI BUSINESS SESSION A. Transmittal of Treasury Report for November 2010 Mr. Falconer presented and reviewed the staff report for the month of November, advising the Board that the cash balance was slightly over $147 million with an overall decrease of $2 million for the month, in addition to one reinvestment of a $13 million Treasury. The $2 million dollar reduction was due to payments to the Riverside County Sheriff's Department for $855,000 and capital projects estimated at $700,000. As stated earlier there was one reinvestment with the average maturity decreasing by four days. Upon review of the November report, Mr. Falconer advised that on page 3 of the report "48 days" should be corrected to read "84" days. Mr. Falconer advised that the interest rates have remained the same for the past year, with the portfolio previously yielding .53% with the current yield at .49% and the pooled investments at .53 %. In response to Board Member Mortenson, Mr. Falconer advised that he would not be investing in Non -TLG Corporate Notes, Fannie Mae and Freddie Mac due to the current issues with the housing market. In response to Chairman Park, Mr. Falconer advised that there were no comments made at the LAIF Conference in regards to the interest rates. General comments ensued amongst the Board regarding the current interest rates. In response to Chairman Park, Mr. Falconer advised that $700,000 paid for capital improvements were various projects. In response to Board Member Spirtos, Mr. Falconer advised that the Morgan Stanley Medium Term Corporate Notes are backed by the Federal Government and they have no effect on the City's investments. 2 Investment Advisory Board Minutes January 12, 2011 Mr. Falconer summarized for the Board the $37 million investment completed in the month of December. General conversation ensued amongst the Board and staff in reference to possibility of the state's elimination of the RDA's. MOTION – It was moved Board Members Spirtos /Mortenson to review, receive, and file the Treasurers Report for November, 2010. Motion carried unanimously. VII CORRESPONDENCE AND WRITTEN MATERIAL A. Month End Cash Report – December 2010 lk iFiT1;Ir-T,1 B. Pooled Money Investment Board Reports – October 2010 Mr. Falconer advised of the impact to LAIF if the state decides to eliminate the RDA. 10 64* FiT§;lrTl C. November 9, 2010 Joint Meeting Minutes with the City Council I� =— .FT,Tl11rTJ VIII BOARD MEMBER ITEMS – None AT THE TIME ITEM II WAS DISCUSSED Appointment of Investment Advisory Board Vice - Chairperson Board Member Spirtos volunteered herself as Vice - Chairperson Motion - It was moved by Board Members Blum /Mortenson to elect Board Member Spirtos to serve as Vice - Chairperson for the Investment Advisory Board. Motion carried unanimously. 3 Investment Advisory Board Minutes IX ADJOURNMENT January 12, 2011 MOTION - It was moved by Board Members Blum /Mortenson to adjourn the meeting at 4:40 p.m. Motion carried unanimously. Vianka Ofrantia, Senior Slecretary for Monika/Radeva, Secretary M