Fullerton City Hall - 303 West Commonwealth Avenue
Third Floor - Room 301
Administrative Services Department Conference Room
At the Chair's discretion, public comments may be allowed on items on this agenda at the time each item is considered.
Persons addressing the Committee shall be limited to 10 minutes unless an extension of time is granted by the Chair subject to approval of the Committee. When any group of persons wishes to address the Committee, it shall be proper for the Chair to request that a spokesman be chosen to represent the group.
At the end of this agenda, public comments may be allowed, at the Chair's discretion, on items NOT on the agenda, but within the subject matter jurisdiction of the Committee. However, NO action may be taken on off-agenda items except as provided by law.
Chair Foeller called the meeting to order at 4:07 p.m.
Don Bankhead, Mayor
Steven Foeller, Citizen Member, Chair
Phyllis Garrova, City Treasurer
Lynn Lauderdale, Citizen Member, Vice Chair
Chris Meyer, City Manager
Glenn L. Steinbrink, Acting Director of Administrative Services
Janie L. Sechrest, Citizen Member, arrived at 4:11 p.m.
Guest: Jennifer Phillips, Assistant to the City Manager
City Manager Meyer introduced Jennifer Phillips, the Assistant to the City Manager.
Due to the absence of Citizen Member Janie L Sechrest, the election was delayed.
There were no suggested changes to the June 6, 2002, minutes. Chair Foeller asked for a motion to approve. City Manager Meyer moved to approve the minutes. Vice Chair Lauderdale seconded.
AYES: Foeller, Garrova, Lauderdale, Meyer
ABSTAIN: Bankhead, Steinbrink
Information entitled "Summary by Issuer" was distributed to the committee by City Treasurer Garrova.
Citizen Member Sechrest arrived during the following discussion:
City Treasurer Garrova reviewed details of the portfolio, noting that the market is still not doing well and, therefore, it can be expected that the interest rate on the portfolio will continue to decline; explained month-by-month fluctuations in the portfolio, noting that the reasons include bond and debt service payments, progress payments to contractors, the schedule of property tax payments to the City, accounts payable, and an Orange County Water District payment. She reviewed investment maturities and purchases; and responded to comments, advising that in addition to matching maturities with expenditures, there is concern regarding interest rate earnings.
There was discussion of the percentage of the portfolio that is invested in instruments of one year or less, the maximum percentage allowed for LAIF, the possibility of extending out four to five years to increase yields, and the performance of treasuries vs. discount agencies.
Ms. Garrova explained that the Investment Policy states that maturities should match expenditures and payroll. However, longer maturities are being considered as well.
The election for a new Chair and Vice Chair was conducted at this point in the meeting. The nominations for the office of Chair were opened. Chair Foeller nominated Vice Chair Lauderdale. Vice Chair Lauderdale nominated Chair Foeller. There were no further nominations; the nominations were closed.
City Treasurer Garrova asked for those in favor of Vice Chair Lauderdale for Chair say Aye. Vice Chair Lauderdale was declared Chair by a unanimous vote.
The nominations for the office of Vice Chair were opened. Citizen Member Sechrest nominated Steve Foeller. There were no further nominations; the nominations were closed. Steve Foeller was declared Vice Chair by a unanimous vote.
The meeting was turned over to Chair Lauderdale.
City Treasurer Garrova advised that there are no legislative changes that would affect any of the permitted investments, and no changes are being recommended to the Investment Policy for this year.
Citizen Member Sechrest noted that a new guideline is under development at the California Debt Investment Advisory Committee (CDIAC) and suggested that it be reviewed and considered for the Investment Policy as appropriate.
Ms. Garrova stated that the Investment Policy as well as the second and fourth quarter financial reports are provided to CDIAC, however, she will determine when the guideline is to be published and report back at the next meeting.
City Manager Meyer approved of the idea of waiting for the recommendations of the CDIAC and considering them at that time.
Chair Lauderdale and Vice Chair Foeller recommended no changes to the policy this year.
Vice Chair Foeller stated that he would be unable to attend the meeting of May 29th.
It was decided to approve the dates as presented; however, City Treasurer Garrova stated that she would discuss the May 29th date with Chair Lauderdale and attempt to substitute a different date that does not present a conflict for any of the members.
It was moved by City Manager Meyer, seconded by Vice Chair Foeller, and carried by a unanimous vote to approve the meeting dates as presented.
There being no further business, Chair Lauderdale asked for a motion to adjourn.
It was moved by Vice Chair Foeller, seconded by Mayor Bankhead and carried by a unanimous vote to adjourn the meeting.
Meeting adjourned at 4:29 p.m.
Next meeting scheduled for May 29, 2003, at 4:00 p.m. in the Administrative Services Department Conference Room.