2011 06 08 IAB MinutesINVESTMENT ADVISORY BOARD
MEETING
June 8, 2011
I. 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 Park followed by the Pledge of
Allegiance.
PRESENT: Board Members Mortenson (via conference call)
Blum, Park and Spirtos
ABSENT: None
OTHERS PRESENT: John Falconer, Finance Director, Tom Genovese,
City Manager, Kathy Jenson, City Attorney and
Vianka Orrantia, Senior Secretary
II PUBLIC COMMENT
III CONFIRMATION OF AGENDA - Confirmed
IV CONSENT CALENDAR
A. Approval of Minutes of Meeting of May 11, 2011 for the Investment
Advisory Board.
MOTION - It was moved by Board Members Blum /Mortensen to
approve the Minutes of May 11, 2011. Motion carried unanimously.
V. BUSINESS SESSION
A. Transmittal of Treasury Report for April 2011
Mr. Falconer presented and reviewed the staff report for the month of
March advising the Board that the cash balance decreased by $3.13
million from the previous month ending the month at $154 million.
The decrease was a result of several capital expenditures: $213,000
for the La Quinta Sports complex and $200,000 for the widening of
the bridge at Avenue 50 at the All American Canal (payment was
made to the City of Indio, the lead agency for the project), in addition
$1.7 million was paid towards the Riverside County Sheriff's contract
and as part of the City's economic development plan, $893,000 was
paid toward the new Garff Motors dealership. Mr. Falconer also
advised that the average maturity decreased by 26 days ending the
month at 192 days, (six -month average maturity), in addition the yield
increased by 3 basis points to .48 with the pooled cash yield at
.59 %. Mr. Falconer further advised that he is currently investing in
commercial paper due to decrease in yields and the uncertainty of the
RDA's future.
Mr. Falconer advised the Board that the LAIF RDA balance has been
reduced to a zero balance and will remain until the Governor's budget
proposal has been finalized.
In response to Board Member Blum, City Attorney Kathy Jenson,
advised that the determination of the Redevelopment Agencies is
scheduled to be voted upon on Wednesday, July 6, 2011.
General discussion ensued amongst the Board and staff regarding the
Redevelopment Agencies and the City's decision to reduce the RDA
LAIF account to zero.
In response to Board Member Mortenson, Mr. Falconer summarized for
the Board the agreement between the City and Garff Motors. In
addition, Ms. Jenson clarified that an operating covenant was made
with Gaff Motors and the money received by Garff Motors was funded
through a grant.
Board Member Spirtos requested that the following correction be made
to page 3, first paragraph third sentence:
In addition, $1.7 million was spent fOFWaFd-B the Riverside
County [ ... I
General discussion ensued amongst the Board and staff regarding the
City's agreement with Garff Motors.
MOTION — It was moved by Board Members Spirtos /Mortensen to
review, receive, and file the Treasurers Report for April 2011. Motion
carried unanimously.
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B. CONSIDERATION OF THE FISCAL YEAR 2011/2012 WORK PLAN
AND CONSIDERATION OF THE FISCAL YEAR 2011/2012
INVESTMENT POLICY
Mr. Falconer presented the final redlined version of the Fiscal Year
2011/2012 Investment Policy with minor changes, a draft staff report
in addition to the Executive Summary with staff's recommendations
which included the following:
PAGE EXECUTIVE SUMMARY
8, 9, 18, 24 Interest bearing active bank deposits
investments with RaboBank N.A. The State
Code has no maximum percentage limitation;
the City policy maximum percentage is more
restrictive at 60% or $40,000,000
whichever is less.
In response to Board Member Mortenson, Mr. Falconer advised that he
would follow -up with the City's broker /dealer to reconfirm the Cusip
numbers in question with RaboBank.
In response to Board Member Mortenson, Mr. Falconer clarified that
the Investment Policy does now allow the purchase of City's bonds,.
which are referenced on pages 12 & 13; this change was made mid-
year to the Fiscal Year 2010/2011 Investment Policy.
Board Mortenson advised that on page 6, under item V. Maximum
Maturity, third paragraph second sentence should be corrected due to
the fact that U.S. Treasury Bills maximum maturity is one year.
Mr. Falconer thanked the Board for their dedication to the City and
their hard work in their review of the City's investments, the annual
review of the investment policy and their diligence in making sure that
policy follows the guidelines of the State and City codes.
Ms. Jenson suggested the following change be made to page 7,
Section VII Authority, last sentence should read:
The City Manager or h@/h`° _ s't [ ... I
And page 23:
Acknowledge Investment Selections - responsible parties should read:
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The City Manager or his /her designee
MOTION - It was moved by Board Members Blum /Mortenson to
approve the Investment Policy for Fiscal Year 2011/12 as amended.
Motion carried unanimously.
VI. CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - May 2011
Mr. Falconer presented and reviewed the Month Cash Report for the
month of May 2011.
In response to Board Member Spirtos, Mr. Falconer advised that page
6 the Month End Report now includes information of the Eurodollar
deposits.
Noted and Filed
B. Pooled Money Investment Board Reports - March 2011
Mr. Falconer advised that many State Agencies continue to participant
in the pooled money investments with a large percentage, as reflected
on page 2, invested in U.S. Treasuries.
Noted and Filed
VII. BOARD MEMBER ITEMS
In response to Board Member Spirtos, Mr. Falconer advised that the
Board's schedule for the upcoming fiscal year will be presented at the
July meeting.
VIII. ADJOURNMENT
MOTION - It was moved by Board Members Blum / Spirtos to adjourn the
meeting at 4:30 p.m. Motion carried unanimously.
M
Senior Secretary