2012 06 13 IAB MinutesINVESTMENT ADVISORY BOARD
Meeting
June 13, 2012
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.
(At this time Ms. Orrantia placed the conference call to the City Attorney.)
PRESENT: Board Members Blum, Spirtos, Park & Donais
ABSENT: Board Member Mortenson
OTHERS PRESENT: John Falconer, Finance Director, Frank J. Spevacek, City
Manager, Kathy Jenson City Attorney, (via teleconference
call) and Vianka Orrantia, Senior Secretary,
11 PUBLIC COMMENT - None
III CONFIRMATION OF AGENDA - Confirmed
Ms. Orrantia noted a correction to the meeting minutes dated May 9, 2012,
page 1, section V. Business Session, Item A, first sentence, in addition to a
correction to the attachment to V. Business Session A, Item B, page 4 of the
proposed Investment Policy, corrected copies were distributed to the Board.
IV CONSENT CALENDAR
1 Approval of Minutes of Meeting on May 9, 2012 for the Investment Advisory
Board.
MOTION - It was moved by Board Members Park/Donais to approve the Minutes
of May 9, 2012, as amended. Motion carried unanimously.
V BUSINESS SESSION
A. Transmittal of Treasury Report for April 2012
Mr. Falconer presented and reviewed the staff report for the month of April
advising the Board of a decrease in the portfolio size by $764,000 ending the
month of April at $172.2 million. Mr. Falconer also reported on the maturity of
two notes, a U.S. Government Sponsored Enterprises Federal Home Loan
Discount Note and the maturity of a U.S. Treasury Note; both were reinvested.
In addition, Mr. Falconer reported on the maturity of the 2004 Non -Housing
bond issue for the Nissan expansion. Mr. Falconer further advised that the
primary reason for the decrease in the cash balance was a result of various
capital improvement projects payments, which totaled $708,000 for the month
of April. Page three included the breakdown of the total as follows: Coral
Mountain Apartments totaled $598,000; Washington Street Apartment
Rehabilitation totaled $40,000 and the proposed roundabout at Eisenhower and
Sinaloa totaled $20,000.
Mr. Falconer reported that the portfolio's average maturity had decreased by 13
days from the prior month, with the current average maturity at 61 days. He
further reported that the portfolio performance had increased by 1 basis point
from the prior month, ending the month at .35 % and the pooled cash
investments at .45%.
Mr. Falconer noted that any future short-term investments would be made in
commercial paper.
Mr. Falconer advised that page 6 reflects an unrealized gain of approximately
$11,000 for the month, with an overall total of $172,000,600 in investments;
with the portfolio near amortized costs. It was noted that this year's portfolio
will not include a GASB 31 adjustment recognizing interest income. Mr.
Falconer further advised that page 7 reflects a draw down in LAIF ending the
quarter at $35,210 and Rabobank's draw down ending the month at $16,478.
In response to Board Member Donais, Mr. Falconer advised that the interest
income for Rabobank currently remains at 49 basis points.
In response to Chairperson Spirtos, Mr. Falconer advised that the Coral
Mountain Apartment project is a multi -year project with a projected completion
of approximately four years.
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General discussion ensued amongst the Board and Frank Spevacek, City
Manager regarding the funding of the Coral Mountain Apartments and its
estimated completion.
MOTION - It was moved by Board Members Donais/Park to review, receive, and
file the Treasurers Report for April 2012. Motion carried unanimously.
B. Consideration of the Fiscal Year 2012/2013 Investment Policy and Work Plan
Items
Mr. Falconer gave a brief overview of the Investment Advisory Board Work Plan
and the Investment Policy.
Mr. Falconer advised that the Investment Advisory Board's Work Plan for Fiscal
Year 2012/2013 is to ensure that the Board's responsibilities comply with
Municipal Code section 2.70.030.
Mr. Falconer advised that the 2012/2013 Investment Policy is presented in two
versions, a final redlined version and a revised version with the corrections
and/or changes incorporated within the policy.
Chairperson Spirtos noted that within the policy in various places the policy still
reads "City of La Quinta Redevelopment Agency," and should be corrected to
read "Successor Agency to the City of La Quinta Redevelopment Agency."
Chairperson Spirtos also noted the following correction:
Page 9 second paragraph should read: In addition, the Treasurer may
investment in an interest bearing active deposit [ ... I
Kathy Jenson, City Attorney noted the following correction:
Page 24 Appendix E - Item 4. Broker/Dealer Services - Banc of America
Securities/ -Merrill Lynch, San Francisco. (Delete space between
slash and Merrill.)
MOTION - It was moved by Board Members Blum/Park to approve the
Investment Policy for 2012/2013 with the minor corrections. Motion carried
unanimously.
VI CORRESPONDENCE AND WRITTEN MATERIAL
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A. Month End Cash Report — May 2012
Mr. Falconer presented and reviewed the month end cash report for the month
of May.
In response to Mr. Spevacek, Mr. Falconer advised that he was unsure if LAW
had caps on investments or if they had maximum limits.
Noted and Filed
B. Pooled Money Investment Board Reports — April 2012
Mr. Falconer presented and reviewed the Pooled Money Investment Board
reports for the month of April.
Noted and Filed
Vil BOARD MEMBER ITEMS
Chairperson Spirtos advised the Board of the upcoming City Council meeting on
June 19, 2012 at 3:00 p.m., which will entail the interviews for the vacancies
for all Boards and Commissions. She further advised that Board Member Blum's
term will expire on June 30, 2012 and that he will be reapplying to the Board.
In response to Chairperson Spirtos, Mr. Falconer advised that the Investment
Advisory Board meeting schedule is approved at the July Investment Advisory
Board meeting as well as the approval by the Board to go dark in the month of
August.
Chairperson Spirtos at this time thanked the Mr. Spevacek and Ms. Jenson for
their attendance.
Vill ADJOURNMENT
MOTION - It was moved by Board Members Park/Blum to adjourn the meeting at 4:45
p.m. _Motion carried unanimously.
Senior Secretary
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