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Home My WebLink About2010-02-11 FA Regular Meeting Agenda POSTED AGENDA PALM DESERT FINANCING AUTHORITY MEETING THURSDAY, FEBRUARY 11, 2010 CIVIC CENTER COUNCIL CHAMBER I. CALL TO ORDER II. ROLL CALL Reports and documents relating to each of the following items listed on the agenda are on file in the Office of the City Clerk and are available for public inspection during normal business hours, Monday – Friday, 8:00 a.m. – 5:00 p.m., 73510 Fred Waring Drive, Palm Desert, CA 92260, (760) 346-0611. III. CONSENT CALENDAR ALL MATTERS LISTED ON THE CONSENT CALENDAR ARE CONSIDERED TO BE ROUTINE AND WILL BE ENACTED BY ONE ROLL CALL VOTE. THERE WILL BE NO SEPARATE DISCUSSION OF THESE ITEMS UNLESS MEMBERS OF THE CITY COUNCIL OR AUDIENCE REQUEST SPECIFIC ITEMS BE REMOVED FROM THE CONSENT CALENDAR FOR SEPARATE DISCUSSION AND ACTION UNDER SECTION XI, CONSENT ITEMS HELD OVER, OF THE AGENDA. A. MINUTES of the Financing Authority Meeting of October 8, 2009. Rec: Approve as presented. B. REQUEST FOR APPROVAL of the Palm Desert "Statement of Investment Policy," As Amended (Joint Consideration with the Palm Desert City Council, Palm Desert Redevelopment Agency, and Palm Desert Housing Authority). Rec: By Minute Motion, adopt the Palm Desert "Statement of Investment Policy," as amended. Action: IV. CONSENT ITEMS HELD OVER POSTED AGENDA PALM DESERT HOUSING AUTHORITY MEETING FEBRUARY 11, 2010 V. RESOLUTIONS None VI. NEW BUSINESS None VII. CONTINUED BUSINESS None VIII. OLD BUSINESS None IX. PUBLIC HEARINGS None X. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. CHIEF ADMINISTRATIVE OFFICER B. AUTHORITY COUNSEL C. PRESIDENT AND MEMBERS OF THE AUTHORITY XI. ADJOURNMENT I hereby certify, under penalty of perjury under the laws of the State of California, that the foregoing agenda for the Palm Desert City Council was posted on the City Hall bulletin board not less than TH 72 hours prior to the meeting. Dated this 5 day of February, 2010. ________________________________ RACHELLE D. KLASSEN, CITY CLERK 2 DRA,FT � � PRELIMINARY MINUTES PALM DESERT FINANCING AUTHORITY MEETING THURSDAY, OCTOBER 8, 2009 CIVIC CENTER COUNCIL CHAMBER 73510 FRED WARING DRIVE, PALM DESERT, CA 92260 I. CALL TO ORDER - 3:00 P.M. President Spiegel convened the meeting at 3:00 p.m. II. ROLL CALL Present: Commissioner Jean M. Benson Commissioner Jim Ferguson arrived at 3:06 p.m. Vice President Cindy Finerty Commissioner Richard S. Kelly President Robert A. Spiegel Also Present: John M. Wohlmuth, City Manager/RDA Executive Director David J. Erwin, City Attorney Justin McCarthy, ACM for Redevelopment Stephen Y. Aryan, Assistant to the City Manager Rachelle D. Klassen, City Clerk Bo Chen, City Engineer Lauri Aylaian, Director of Community Development Paul S. Gibson, Director of Finance/City Treasurer Janet M. Moore, Director of Housing Mark Greenwood, Director of Public Works Frankie Riddle, Director of Special Programs Ignacio Otero, Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Dorian Cooley, Division Chief, Palm Desert Fire/Riverside Co. Fire Dept./Cal Fire Andrew Shouse, Asst. Chief, Palm Desert Police/Riverside Co. Sheriff's Dept. Grace L. Mendoza, Deputy City Clerk Upon a motion by Finerty, second by Kelly, and 4-0 vote of the Authority Board, with Ferguson ABSENT, President Spiegel adjourned the meeting to Closed Session of the City Council and Redevelopment Agency Board at 3:03 p.m. He reconvened the meeting at 4:00 p.m. � u� ,:. ;. PRELIMINARY MINUTES PALM DESERT FINANCING AUTHORITY MEETING OCTOBER 8, 2009 III. CONSENT CALENDAR A. MINUTES of the Financing Authority Meeting of August 27, 2009. Rec: Approve as presented. B. REQUEST FOR APPROVAL of the City of Palm Desert "Statement of Investment Policy" (Joint Consideration with the Palm Desert City Council, Palm Desert Redevelopment Agency, and Palm Desert Housing Authority). Rec: By Minute Motion, approve the City of Palm Desert "Statement of Investment Policy," as presented. Upon a motion by Ferguson, second by Benson, and 5-0 vote of the Authority Board, the Consent Calendar was approved as presented. IV. CONSENT ITEMS HELD OVER None V. RESOLUTIONS None VI. NEW BUSINESS None VII. CONTINUED BUSINESS None VIII. OLD BUSINESS None IX. PUBLIC HEARINGS None � ` �� PRELIMINARY MINUTES PALM DESERT FINANCING AUTHORITY MEETING OCTOBER 8, 2009 X. REPORTS, REMARKS, AND AGENCY BOARD ITEMS REQUIRING ACTION A. CHIEF ADMINISTRATIVE OFFICER Mr. Wohlmuth reminded City Council/Authority Board Members that a Study Session was scheduled for Thursday, October 15, 2009, at 2:00 p.m., to talk about Desert Willow Terraces and the Redevelopment Agency Implementation Plan. B. AUTHORITY COUNSEL 1►C•7T C. PRESIDENT AND MEMBERS OF THE AUTHORITY None XI. ORAL COMMUNICATIONS - C None XII. ADJOURNMENT Upon a motion by Finerty, second by Kelly, and 5-0 vote of the Authority Board, President Spiegel adjourned the meeting at 5:38 p.m. ROBERT A. SPIEGEL, PRESIDENT ATTEST: RACHELLE D. KLASSEN, SECRETARY PALM DESERT FINANCING AUTHORITY K3 CITY OF PALM DESERT OFFICE OF THE CITY TREASURER Staff Report REQUEST: ADOPTION OF THE PALM DESERT "STATEMENT OF INVESTMENT POLICY", AS AMENDED DATE: February 11, 2010 SUBMITTED BY: Paul S. Gibson, Finance Director CONTENTS: 1) Excerpt from Palm Desert "Statement of Investment Policy" 2) LAIF Press Release on Deposit Limit Increase Recommendation By Minute Motion, that the City Council adopt the Palm Desert "Statement of Investment Policy", as amended. Committee Recommendation The Audit, Investment, and Finance Committee reviewed the proposed changes at their January 26, 2010 meeting, and unanimously recommended that the City Council adopt the policy as amended. Background The State of California Local Agency Investment Fund ("LAIF") was established in 1977 to strengthen the financial security of local agencies. The State Treasurer, who administers LAIF, invests local agency trust monies in a $24.8 billion diversified fixed - income portfolio. Investments are limited, by law, to U.S. Treasury securities; government agency securities; domestic corporate bonds; interest -bearing time deposits in California banks, savings and loan associations, and credit unions; prime - rated commercial paper; repurchase and reverse repurchase agreements; security loans; banker's acceptances, negotiable certificates of deposit; and loans to various bond funds. Local agencies can withdraw their monies on a same -day basis. LAIF has never lost any investment principal in 32 years of operation. On October 8, 2009, the Palm Desert City Council approved Revision No. 15 to the City of Palm Desert "Statement of Investment Policy", as part of an annual policy review. In that revision, the LAIF deposit limit was identified as $40 million per account (the maximum allowed by state law at that time). Staff Report Adoption of Statement of Investment Policy as Amended February 11, 2010 Page 2 of 2 On November 16. 2009, State Treasurer Bill Lockyer raised the LAIF deposit limit from $40 million per account to $50 million per account. More deposit limit increases are likely since LAIF is a lucrative source of income for both local agencies and the State of California. Staff recommends that the City "Statement of Investment Policy" be amended by substituting language that authorizes investment in LAIF "up to the maximum allowed by state law", as opposed to identifying a specific dollar limit. This will provide the City with operational flexibility in the event that the LAIF deposit limit is changed again. Fiscal Impact There is no direct impact as a result of this action. However, the City will have the advantage of a higher deposit limit in the LAIF account. Submitted By: Paul S. Gibson, CCMT, City Treasurer Approved By: Jo r n M. Wohlmuth, City Manager CITY COUNCIL ACTION APPROVED / DENIED RECEIVED OTHER, oYYI Qr► 4 ► Thomas W. Jeffrey, c y Treasurer MEETING DATE -1C/0 AYFS•bi15o/7, (egascn,'ke/y, :,`1 / 7/, ///erjy NOES: AI nnc' ABSENT: N nne Ai3STAIN: niT i r 'VI'Rill E1) BY- l� n l rep Orif.zinal on File with City Clerk's Office BY RDA (5-0) ON --9 VERIFIED BY____JS Original on file with CityClerk's ° s Office a (f)f' BY FIN AUTH (5 C, Original an fife with City Clerk's Office BY HOUSG AUTH ON ,--//-9C/C VERIFIED BY: Original on file with City Clerk's Office ATTACHMENT 1 Palm Desert Treasury Policies and Procedures No. 2: "St atement of Investment Policy' ' No. Type of Investment 10. State of California Local Agency Investment Fund ("LAIF") that is managed by the State Treasurer's Office. 11. Structured Notes in the form of callable securities or "STR IPS" issued by the United States Treasury or by Federal Agencies or government -sponsored enterprises ("GSE"). % of Portfolio Authorized See note -› Revision No. Adopted: Other Restrictions MMF must have dollar - weighted average maturity of 90 days or less. MMF must buy securities that mature in 13 months or less. No commission may be charged. $40 million limit Maximum deposit per account allowed by State law with LAIF, except for bond trustee accounts (no deposit limit). City Council and Redevelopment Agency approved participation in LAIF on 1 2/1 2/81 in Resolution No. 81-161 . 20% Maximum maturity: 5 years DELETED LANGUAGE REPRESENTED BY "STRIKER". ADDED LANGUAGE REPRESENTED BY "SHADING". Page 12 LAIF Deposit Limits ATTACHMENT 2 Page 1 of 1 i.clitl+!1 1110 ''*L11(' "T) c'i1_111 Pooled Money Investment Account State Treasurer to Increase Local Agency Investment Fund (LAIF) Deposit Limit Effective November 16, 2009, State Treasurer Bill Lockyer will increase the Local Agency Investment Fund's deposit limit for regular accounts from the current $40 million to $50 million based upon a recommendation presented by the Local Investment Advisory Board (LIAB). Based on the needs voiced by local government participants, the LIAB has periodically requested changes to the policy related to limits on account balance. The last time the Treasurer increased the LAIF's deposit limit for regular accounts was January 1, 2002, as requested by the LIAB, the deposit limit was increased from $30 million to the current $40 million per regular account. Please direct questions regarding LAIF's policies to the LAIF staff at (916) 653-3001. http://www.treasurer.ca.gov/pmia-laif/news/deposit_limits.asp 1/20/2010