2010 08 11 IAB MinutesINVESTMENT ADVISORY BOARD
MEETING
August 11, 2010
1. CALL TO ORDER
A regular meeting of the Investment Advisory Board was called to order at
4:00 p.m. by Board Member Spirtos, appointed Acting Chair followed by the
Pledge of Allegiance.
PRESENT: Board Members Mortenson, Blum and Spirtos
ABSENT: Board Members Park and Rassi
STAFF PRESENT: John Falconer, Finance Director and Vianka Orrantia,
Senior Secretary
II. PUBLIC COMMENT - None
III. CONFIRMATION OF AGENDA - Confirmed
IV. CONSENT CALENDAR
A. Approval of Minutes of Meeting on July 14, 2010 for the Investment
Advisory Board
General discussion ensued amongst the Board and staff regarding the
reason for payment for the Supplemental Educational Relief
Augmentation Fund (SERAF).
MOTION: It was moved by Board Members Mortenson/Blum to
approve the minutes of July 14, 2010. Motion carried unanimously.
V. BUSINESS SESSION
A. Transmittal of Treasury Report for June 2010
Mr. Falconer presented the draft Treasurer's Report for the month of
June, advising the Board that due to the City's recent audit, the final
numbers were unavailable at this time, as well as the cash flow report.
Mr. Falconer reviewed the draft report advising the Board that the
portfolio balance ended at $182.67 million, a decline of $3.9 million
F3
VI
as a result of the following city capital improvement projects: the Fire
Station/Corporate Yard Project at $1.27 million, the Laguna de la Paz
Sound wall at $240,000, the Adams Street Bridge Crossing Project at
$160,000, and the Highway 111 Traffic Signal Upgrade Project at
$216,000. Mr. Falconer commented that the month of June is not a
large revenue generating month for the city.
Mr. Falconer further advised that the investment activity resulted in an
average maturity which decreased by 3 days to 134 days at the end
of June. In addition, purchases of two Treasury Bills totaling $16
million and three Certificates of Deposit with local banks totaling
$729,000 were made during the month. The portfolio performance
decreased by one basis point in comparison to the previous month
ending the month at .47% for the month with the pooled cash
investments yielding .50% versus .52% from the prior month.
In response to Board Member Spirtos, Mr. Falconer clarified that page
7 reflects different balances due to monies invested in LAIF versus
monies being drawn down in LAIF.
Mr. Falconer recommended that the Treasurer's Report for the month
of June be continued to the next scheduled meeting. Board
concurred.
MOTION - It was moved by Board Members Blum/Mortenson to
continue the Treasurer's Reports for June 2010 to the next scheduled
meeting in September. Motion carried unanimously.
Investment Advisory Board 2010/2011 Work Plan
Mr. Falconer advised that the approved work plan staff report
approved by the City Council was included in the agenda for the
Board.
Mr. Falconer advised the upcoming LAIF Conference was going to be
attended by Board Members Mortensen and Blum.
MOTION: It was moved by Board Members Blum/Mortenson to
approve the 2010-201 1 Work Plan. Motion carried unanimously
CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report — July 2010
Mr. Falconer presented and reviewed the Month Cash Report for July
2010, reiterating to the Board that the report is used to track the
city's cash position. The current report reflects four CD's purchased
with the local banks: Rabo Bank, One West Bank, Palm Desert
National Bank and 1st Bank. Mr. Falconer advised that page 3 of the
report was a summary of the LAIF performance.
General discussion and questions ensued by the Board in reference to
the Month End Cash Report.
In response to Board Member Mortenson, Mr. Falconer advised that he
would follow-up with Bank of New York in regards to excess
insurance coverage and will report back to the Board.
Mr. Falconer summarized for the Board the City's trade process.
Noted and Filed
B. Pooled Money Investment Board Report — May 2010
Noted and Filed
VII BOARD MEMBER ITEMS - None
VII ADJOURNMENT
It was moved by Members Blum/Mortenson to adjourn the Investment
Advisory ar eting at 4:38 p.m. Motion carried unanimously.
Vianka Orrantia
Senior Secretary