2014 03 12 IAB MinutesINVESTMENT ADVISORY BOARD
MINUTES
March 12, 2014
CALL TO ORDER
A regular meeting of the La Quinta Investment Advisory Board was called to order
at 4:00 p.m. by Chairperson Mortenson.
PRESENT: Board Members Godbey, Donais, Mortenson, Spirtos and Park
ABSENT: None
STAFF PRESENT: Interim Finance Director, Patrick Griffin, Public Works Director,
Tim Jonasson, Senior Partner, Brian Gruber with Lance Soll and
Lunghard (LSL) and Senior Secretary, Vianka Orrantia
PUBLIC COMMENT — None
Mr. Griffin requested that upon approval of the confirmation of the agenda that the
Director's Item be the first item of discussion followed by Business Session — Item
1 .
CONFIRMATION OF AGENDA — Confirmed
APPROVAL OF MINUTES
Approval of the Minutes of January 8, 2013
Motion — A motion was made by Board Members Spirtos/Park to approve the
Minutes of January 8, 2014. Motion passed unanimously.
CONSENT CALENDAR ITEMS
1. Transmittal of Treasury Report for December 31, 2013
Mr. Griffin presented and reviewed the staff report for December 31, 2013.
Motion — A motion was made by Board Members Spritos/Donais to review and file
the Treasurer's Report for December 31, 2013 as submitted, which includes the
corrected handout for page 4. Motion passed unanimously.
INVESTMENT ADVISORY MINUTES March 12, 2014
BUSINESS SESSION
1. Consideration of Fiscal Year 2014/2015 Investment Policy and Work Plan Items
Mr. Griffin presented the draft 2014/2015 Investment Policy and the approved
2013/2014 work plan item staff report from the previous year for the Board's
review and consideration for the upcoming fiscal year. Mr. Griffin suggested that
the Board bring to the next scheduled meeting any recommended
changes/additions/deletions.
Board Member Mortenson recommended the following changes/additions/deletions
to the policy:
Page 9: Listed under Permissible Investments and Limitations, items two and three,
restriction columns, "3 - 10 years - delete - redundancy to the maximum maturity
column.
Page 9: Listed under Permissible Investments and Limitations item five, U.S.
Government Agency Securities - requires restriction.
Page 18: Listed under Permissible Deposits and Investments, item six - requires
restriction
Page 19: Footnote - requires restriction
Motion - It was moved by Board Members Donais/Spritos to continue the review of
the 2014/2015 Investment Policy and Work Plan Items. Motion carried
unanimously.
CORRESPONDENCE AND WRITTEN MATERIAL
1. Consideration of Fiscal Year 2012/2013 Audited Financial Statements
Senior Partner, Brian Gruber of LSL presented the Comprehensive Annual Financial
Report (CAFR) for year ended June 30, 2013. Mr. Gruber informed the Board of
the audit and the audit processes.
Mr. Gruber advised that the most significant impact to this year's CAFR was the
decline in the cash and investments (by approximately $45 million) as a result of
the dissolution of the Redevelopment Agency (RDA). In addition, as a result of the
dissolution of the RDA, several debt loans were being paid by the Successor
Agency. These transactions were reviewed and denied by the Department of
Finance resulting in the loans being returned to the City; therefore resulting in the
reporting of these transactions within the CAFR as "extraordinary transactions."
INVESTMENT ADVISORY MINUTES 2 March 12, 2014
Mr. Gruber advised that the City implemented a couple of governmental standard
policies that were newly affected relating to terminology. The term net assets was
changed to net position, which presents information on all of the City of La
Quinta's assets, deferred outflows of resources, liabilities, and deferred inflows of
resources, with the difference between the two reported as net position. In
addition the terms "deferred in -flows" and "deferred out -flows" were added,
separating certain line items and placing them into their own category. Mr. Gruber
further advised of the change to debt issuance costs, previously when the City
issued debt, the fees associated with it were amortized over the life of the debt.
The new guidelines state that these fees have to be expensed in the period of the
issuance of the debt.
General discussion ensued amongst the Board and staff further clarifying the
reporting of the debt fees, in addition to the discussion of the City's decline of the
net assessed values within the last three years.
The Board and staff thanked Mr. Gruber for his attendance.
Noted and Filed
2. Month End Cash Report for January 2014 and the Pooled Money Investment
Board Reports for December 2013 and January 2014
Mr. Griffin advised the Board that the handout is a revision to page 2, correcting
the LAIF investment amount.
Noted and Filed
BOARD MEMBER ITEMS — None
DIRECTOR'S ITEMS:
1. Presentation on Proposed Landscape Enhancements and Assessments for North
La Quinta.
Public Works Director, Tim Jonasson presented the proposed Landscape
Enhancements and Assessments for north La Quinta and clarified the fiscal
challenges encountered in the City's efforts to maintain the quality landscaping that
currently exists and the proposed solutions to these challenges.
ADJOURNMENT
There being no further business, it was moved by Board Members Park/Spritos to
adjourn this meeting at 5:19 p.m. Motion passed unanimously.
INVESTMENT ADVISORY MINUTES 3 March 12, 2014
Vianka �"raAitr,--S—enioi Seci
City of/ta Quinta, California
INVESTMENT ADVISORY MINUTES 4 March 12, 2014