2010 09 08 IAB MinutesINVESTMENT ADVISORY BOARD
MEETING
September 8, 2010
I. CALL TO ORDER
A regular meeting of the Investment Advisory Board was called to order at
4:00 p.m. by Chairman Park followed by the Pledge of Allegiance.
PRESENT: Board Members Mortenson, Blum, Park, Spirtos and Rassi
ABSENT: None
STAFF PRESENT: John Falconer, Finance Director and Vianka Orrantia,
Senior Secretary
II. PUBLIC COMMENT - John Ingalls, City of La Quinta Resident
III. CONFIRMATION OF AGENDA - Confirmed
IV. CONSENT CALENDAR
A. Approval of Minutes of Meeting on August 11, 2010 for the
Investment Advisory Board
MOTION - It was moved by Board Members Blum/Spirtos to approve
the minutes of August 11, 2010. Motion carried unanimously.
V. BUSINESS SESSION
A. Transmittal of Treasury Report for June and July 2010
Mr. Falconer presented and reviewed the staff reports for the months
of June and July 2010, advising the Board that the June report
presented at the August meeting was a draft with the final June report
presented with no changes.
In response to Board Member Park, Mr. Falconer advised that the new
fire station is located on the corner of Avenue 52 and Bermudas.
Further discussion ensued amongst the Board in reference to the new
fire station.
Mr. Falconer presented and reviewed the July staff report advising the
Board that page 12 reflects the maturing of a three-month Treasury
Bill, which was reinvested. The portfolio decreased by $2.23 million
ending the month at $180 million, with the overall portfolio
performance ending at .47% and the average maturity at 119 days.
Mr. Falconer stated that he feels that the interest rates will remain at
.50% through 2011.
Mr. Falconer advised of the current TLGP notes and their performance.
General discussion ensued amongst the Board and staff regarding the
TLGP Program and Fannie Mae and Freddie Mac.
In response to Board Member Park, Mr. Falconer advised that the
budgeted monthly fee paid to the Riverside County Sheriff's
department is approximately $1 million per month.
Further discussion ensued amongst the Board regarding the cost of
contracted sheriff's services vs. city police services.
In response to Board Member Spirtos, Mr. Falconer summarized for the
Board the housing demand increase on page 15.
In response to Board Member Spirtos, Mr. Falconer advised that a
portion of the Quimby funds reflected on page 18, is budgeted for the
sports center complex, due to be completed by the end of 2010.
In response to Board Member Blum, Mr. Falconer reviewed and
explained the use of the Quimby Funds.
Further discussion ensued amongst the Board regarding the Quimby
Fees.
MOTION - It was moved Board Members Mortenson/Blum to review,
receive, and file the Treasurers Report for June and July 2010.
Motion carried unanimously.
VI CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report - August 2010
Mr. Falconer presented and reviewed the August 2010 report advising
on the City's investment activity reflected on page 2, the Bank of New
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York's investments ended the month at $97 million. In addition,
there was the maturity of several Federal Home Loan investments
which were used to pay pass -through payments and semi-annual debt
service payments. Mr. Falconer also advised that page 3 reflects the
LAIF daily yields with the yields remaining at .51 % and page 7
reflecting the current T-Bill rate, with the three-month T-Bill at .14%.
Mr. Falconer further advised that Board Members Mortenson and Blum
would be attending this year's annual LAW Conference in October.
In response to Board Member Spirtos, Mr. Falconer advised that he
would report back to the Board in reference to the decrease reflected
in the table on page 12, column titled "other".
In response to Board Member Spirtos, Mr. Falconer clarified that the
salaries and fringe benefits increase was due to the fact that eight
days of payroll was accrued in the month of June, which was part of
the prior fiscal year.
Noted and Filed
B. Pooled Money Investment Board Reports - June 2010
Mr. Falconer commented on the average daily portfolio reflected on
page 1 of the report.
Noted and Filed
C. Bank of New York Insurance
Mr. Falconer advised that the Bank of New York Insurance information
provided was for informational purposes only.
Noted and Filed
D. Municipal Code Section 2.06.020
Mr. Falconer advised that the Municipal Code Section 2.06.020 was
for informational purposes only.
Noted and Filed
VII BOARD MEMBER ITEMS - None
VIII ADJOURNMENT
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It was moved by Board Members Spirtos/Blum to adjourn the Investment
Advisory Board meeting at 4:45 p.m. Motion carried unanimously.
Sub�tted b�:
Vianka Orrantia
Senior Secretary
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