2012 07 11 IAB MinutesINVESTMENT ADVISORY BOARD
Meeting
July 11, 2012
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 Mortenson (via teleconference), Blum,
Spirtos, Park and Donais
ABSENT: None
OTHERS PRESENT: John Falconer, Finance Director and Vianka Orrantia, Senior
Secretary
11 APPOINTMENT OF OFFICERS
A. Appointment of Investment Advisory Board Chairperson
Chairperson Spirtos opened nominations for Chairperson.
Board Member Park nominated Board Member Blum for the position of
Chairperson.
With no other nominations, Chairperson Spirtos closed the nominations.
VOTE: All Ayes
B. Appointment of Investment Advisory Board Vice -Chairperson
Board Member Blum opened nominations for Vice -Chairperson.
Chairperson Spirtos nominated Board Member Mortenson as Vice -
Chairperson.
With no other nominations, Board Member Blum closed the nominations.
VOTE: Ali Ayes
III PUBLIC COMMENT - None
IV CONFIRMATION OF AGENDA - Confirmed
V CONSENT CALENDAR
A. Approval of Minutes of Meeting on June 13, 2012 for the Investment Advisory
Board.
Board Member Spirtos requested a correction be made to page 4, item A.,
second paragraph to read, "in response to Mr. Spevacek, Mr. Falconer advised
that he WW unsure [ ... I
MOTION - It was moved by Board Members Park/Donais to approve the Minutes
of June 13, 2012, as amended. Motion carried unanimously.
VI BUSINESS SESSION
A. Transmittal of Treasury Report for May 2012
Mr. Falconer presented and reviewed the staff report for the month of May
advising the Board that the cash balance had increased slightly by $7.1 million,
ending the month at $179.29 million. The cash balance was a result of the
following: the city was in receipt of $1.78 million in property taxes, $916,000
in Transient Occupancy Tax collections, $1.54 million in sales tax and triple flip
sales tax revenue, $1.58 million in motor vehicle in lieu fee revenue from the
County and $418,000 in lighting and landscaping collections. Mr. Falconer
noted that historically the cash balance increased by approximately $20 million
but due to the dissolution of the RDA, the City is no longer receiving RDA tax
increments. Mr. Falconer advised that the Capital Expenditures totaled $40,000
for the month May, a decrease from previous months due to the completion of
the "A" Street project and the current closure of the Adams Street Bridge. Mr.
Falconer further advised that the average maturity and rates remain unchanged.
In response to Board Member Spirtos, Mr. Falconer clarified that the dollar
amount reflected for SilverRock for the month of October on page 9 are
projected food and merchandise sales.
In response to Board Member Mortenson, Mr. Falconer advised that CD's
purchased are usually kept below $250,000, and as they mature staff usually
rolls them over. Mr. Falconer noted that with the current economy the new
interest rates on any purchased and/or rolled CD's will be at a lower rate. He
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further noted that the current CD's have been purchased through local banks
located within the City.
General discussion ensued amongst the Board and staff regarding the possibility
of purchasing additional CD's.
In response to Chairman Blum, Mr. Falconer summarized for the Board the term
.claw back" and explained how this process is used by the State.
MOTION — It was moved by Board Members Spirtos/Donais to review, receive,
and file the Treasurers Report for May 2012. Motion carried unanimously.
B. FY 2012/2013 Meeting Schedule
Mr. Falconer presented the 2612/2013 meeting schedule for the Board's
approval.
Board Member Mortenson suggested that the Board go dark in the month of
August. Board concurred.
Mr. Falconer suggested that the Board continue to meet on a monthly basis due
to the commencement of a new Finance Director. Board concurred.
MOTION — It was moved by Board Members Park/Spirtos to accept the Fiscal
Year 2012/2013 Meeting Schedule with the Board going dark in the month of
August. Motion carried unanimously.
VII CORRESPONDENCE AND WRITTEN MATERIAL
A. Month End Cash Report — June 2012
Noted and Filed
B. Pooled Money Investment Board Reports — May 2012
Mr. Falconer presented the pooled money investment board report advising the
Board that the LAIF pooled investment account reported a $2.9 billion decrease
in cash position for Fiscal Year 2011/2012. Mr. Falconer further advised that
the yield decreased by approximately 5 basis points and the maturity increased
by approximately 40 days.
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In response to Chairman Blum, Mr. Falconer advised that any significant
changes to the pooled money investment account are neither explained and/or
reported to pooled participants.
Noted and Filed
C. Distribution of.investment Policies for Fiscal Year 2012/2013
Mr. Falconer advised the Board that the City Council approved the 2012/2013
Investment Policy in June and presented the policy to the Board.
In response to Board Member Spirtos, Mr. Falconer clarified that the third
paragraph on the cover page of Item C should have been omitted and had no
impact to the approved investment policy.
Noted and Filed
Vill BOARD MEMBER ITEMS
The Board at this time commended Mr. Falconer for his dedication, efficiency,
accuracy, integrity and commitment to the City.
IX ADJOURNMENT
MOTION - It was moved by Board Members Spirtos/Blum to adjourn the meeting at
4:36 p ion carried unanimously.
S�t mitted b
Vianka Orrantia
Senior Secretary
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