2011 11 09 IAB MinutesN
INVESTMENT ADVISORY BOARD
Meeting
November 9, 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 Chairperson Spirtos followed by the Pledge of Allegiance.
PRESENT: Board Members Blum, Spirtos, Park and Donais
ABSENT: Board Member Mortenson
OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia, Senior
Secretary
II PUBLIC COMMENT - None
III CONFIRMATION OF AGENDA - Confirmed
IV CONSENT CALENDAR
1. Approval of Minutes of Meeting on October 12, 2011 for the Investment
Advisory Board.
Staff advised the Board that the handout is a correction to page 2 of the
meeting minutes, the correction was made under the Business Session, Item A
ninth sentence, the sentence should read:
slightly deeeased f pleaset ending the month at $13 million. L..]
MOTION - It was moved by Board Members Blum / Donais to approve the
Minutes of October 12, 2011 as amended. Motion carried unanimously.
V BUSINESS SESSION
A. Transmittal of Treasury Report for September 2011
Mr. Falconer presented and reviewed the staff report for the month of
September advising the Board that page 2 reflects a decrease of the portfolio by
$15.4 million, as well as the purchases made for the month of September. Mr.
Falconer further advised that the details for the $15.4 million decrease were
listed on page 3. The decrease was due to an $ 11.9 million in semi - annual debt
service payment (which includes principal and interest) and $2.44 million in
capital improvements ($640,830 towards the Adams Street Bridge and $1.37
million towards property in the Village). Mr. Falconer stated that the payments
made towards the bridge are reimbursable and will be reimbursed from the
Surface Transportation funds by 88% and the Coachella Valley Association of
Governments by 12 %.
General discussion ensued amongst the Board and staff regarding the
construction of the bridge.
Mr. Falconer advised that the average maturity had increased by approximately
22 days from the prior month ending maturities at 124 days. Mr. Falconer also
advised of the five purchases in bond funds were made for the month with
three investment maturities.
Mr. Falconer advised the Board that the State Supreme Court hearing has been
scheduled for November 10, 2011 for the Redevelopment Agency.. This hearing
will determine the existence of the Redevelopment Agency, and whether or not
the city will make the January payment of $18 million. Mr. Falconer further
advised the Board that if the January payment is required, that the funds for
payment will be derived from LAIF.
Mr. Falconer commented on the upcoming maturities in January which staff is
considering reinvesting in short -term commercial paper.
Mr. Falconer summarized the investments listed on page 7 as follows: $15
million in Federal Home Loan Bank for six months at .06% yield; Treasury Bills
for one year (Mr. Falconer noted that the investments were made with bond
debt reserve funds); Project Funds from the Housing Account; increased the
Rabobank investments by $39.5 million and advised of a slight decrease in LAIF
due to a withdrawal and the maturity of a Morgan Stanley FDIC TLGP Note.
In response to Chairperson Spirtos, Mr. Falconer clarified for the Board U. S.
Government Sponsored Enterprises; he also noted that page 4 of the report
contained a small summary and a list of permissible securities.
In response to Chairperson Spirtos, Mr. Falconer stated that loss of the Bob
Hope Classic could be a possible increase in TOT due to upcoming scheduled
events in lieu of the classic.
2
MOTION - It was moved by Board Members Park /Blum to review, receive, and
file the Treasurers Report for September 2011. Motion carried unanimously.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - October 2011
Mr. Falconer presented and reviewed the report for October advising of maturing
investments in addition to the transferring of funds reflected on page 2 of the
report.
Mr. Falconer advised that any maturing investments in December would be
invested in LAIF and any other excess funds would temporally be invested in
short-term commercial paper.
Mr. Falconer noted that the yields on page 4 and page 5 reflect the recent Bill
Auctions and Short -Term Note, which still remain at a historical low.
In response to Board Member Donais, Mr. Falconer advised that his reason for
investing in short -term commercial paper was due to the upcoming RDA
payment in January and the fact that they are the highest yielding investment at
this time.
In response to Board Member Blum, Mr. Falconer advised that staff would email
a copy of the investment policy. ,
Noted and Filed
B. Pooled Money Investment Board Reports - August 2011
Mr. Falconer presented and reviewed the report for the month of August
advising the Board that the pooled money portfolio had decreased by $4.1
billion and the life of the pool has increased by 227 days. Mr. Falconer further
advised that the pooled loans in August were at 8.5% and ended at 14.23%
one month later.
Noted and Filed
VII BOARD MEMBER ITEMS
Mr. Falconer advised the Board that the City's Auditors will be in attendance to
review the Financials at the December 14`" Investment Advisory Board Meeting.
K
Staff will include the financials with the agenda for review in preparation for any
questions or comments.
Chairman Spirtos advised the Board of the upcoming City events as follows:
November 11'"
November 15th
December 2n
December 7t'
VIII ADJOURNMENT
Veterans Day Celebration
Stan Sniff 25 Years on City Council
Tree Lighting Ceremony
City Hall Holiday Luncheon
MOTION - It was moved by Board Members Park /Blum to adjourn the meeting at 4:30
p.m. Motion carried unanimously.
Vianka Cftantia
Senior Secretary
4