Fullerton City Hall - 303 West Commonwealth Avenue
Third Floor - Room 301
Administrative Services Department Conference Room
City Treasurer Garrova assumed the role of Chair due to the resignation of Victoria Beatley following the last meeting of the Committee. She called the meeting to order at 4:10 p.m.
|Members present:||Steven Foeller, Citizen Member|
Phyllis Garrova, City Treasurer
Lynn Lauderdale, Citizen Member
Glenn Steinbrink, Acting Director of Administrative Services
Chris Meyer, City Manager
|Members absent:||Patrick Griffin, Citizen Member|
F. Richard Jones, M.D., Councilmember
None. City Treasurer Garrova noted there were no members of the public in attendance.
City Treasurer Garrova stated that nominations for Chair and Vice Chair were Citizen Members Steve Foeller and Lynn Lauderdale, respectively, and requested a motion to close nominations. City Manager Chris Meyer so moved, Acting Director of Administrative Services Glenn Steinbrink seconded, and the motion passed unanimously.
Ms. Garrova asked for a vote of those in favor of Steve Foeller as Chair.
|AYES:||Foeller, Garrova, Meyer, Steinbrink, Lauderdale|
Ms. Garrova then asked for a vote of those in favor of Lynn Lauderdale as Vice Chair.
|AYES:||Foeller, Garrova, Lauderdale, Meyer, Steinbrink|
With the election of Chair and Vice Chair concluded, Chair Foeller assumed control of the meeting.
Chair Foeller asked if there were any comments or suggested changes to the May 31, 2001, minutes. With no response, Chair Foeller asked for a motion to approve. City Manager Meyer moved to approve the minutes. Ms. Garrova seconded.
|AYES:||Foeller, Garrova, Lauderdale, Meyer|
City Treasurer Garrova provided the Committee members with a copy of the latest investment report (as of 2/28/02), which provided the current status of the portfolio with previous month and previous quarter comparisons, along with a listing of activity that occurred during the reporting period. Ms. Garrova pointed out that the increase in the portfolio balance in December was due to property tax increment, the substantial increase in January was due to receipt of $6 million from Amerige Heights for park dwelling fees, and the slight decrease in February was due to payables.
Ms. Garrova noted there was little change from the quarter ending 9/30/01 to quarter ending 12/31/01. She also informed the Committee that she had stopped investing in commercial paper for the time being, and pointed out that investments had increased in Treasury bills and discount notes because of interest rates being within the same range.
Ms. Garrova advised that investments totaling $18.5 million had matured and that $22.5 million had been purchased during the reporting period.
Vice Chair Lauderdale asked if any commercial paper had been sold due to credit quality, and Ms. Garrova responded that had not happened.
Chair Foeller asked about the revenue from Amerige Heights received in January. Acting Director of Administrative Services explained that the Fullerton School District had issued bonds for the Amerige Heights Community Facilities District, and that $6 million of the bond proceeds was paid to the City for park dwelling fees. City Manager Meyer explained that park dwelling fees were charged to developers in order to construct new community services facilities for a new development. He also noted that the Amerige Heights park dwelling fees amounted to $5,280 per dwelling unit, and that with those funds, the City will be constructing a sports field. Mr. Steinbrink added that a new community center was also part of the project.
Vice Chair Lauderdale asked if the sports field would necessarily benefit the residents of Amerige Heights. City Manager Meyer indicated that it would clearly benefit the residents because the sports field will be located on the eastern border of Amerige Heights.
City Treasurer Garrova continued with the presentation of the investment portfolio update, noting that the "Summary by Issuer" page showed the diversity of the investments, as well as the value, average yield to maturity, and average days to maturity.
City Manager Meyer noted that LAIF rates were continuing to drift down.
Vice Chair Lauderdale asked what LAIF's average maturity was. City Treasurer Garrova advised that the LAIF portfoilio was, in general, under a year.
Chair Foeller asked if Committee members could receive similar investment portfolio reporting information about LAIF. Ms. Garrova indicated that she had just received the December report booklet, which shows the entire makeup of the portfolio. City Manager Meyer asked Ms. Garrova to mail each of the Committee members a copy of the LAIF booklet.
Mr. Steinbrink stated that he had heard the information was now available on LAIF's website, and Ms. Garrova advised she would e-mail the Committee members the website address information.
Vice Chair Lauderdale asked if the City was "lightening up" on LAIF. Ms. Garrova informed the Committee that she was staying close to the maximum, but because of the continuing decline in LAIF rates, alternative investments were being explored.
Chair Foeller pointed out that at this particular meeting (the first meeting of the calendar year) the Committee typically goes through the Investment Policy to determine if any changes, other than those required by law, are needed.
City Treasurer Garrova noted that the two changes required by law in 2002 are: 1) an increase from 15% to 25% of the cost value of the portfolio for commercial paper purchases, and 2) an increase in the maximum allowable investment in LAIF from 60% or $30 million to 65% or $40 million.
Chair Foeller asked if there were other changes the Committee members wanted to consider.
Ms. Garrova suggested that a glossary section be added to the policy, similar to that used by the Municipal Treasurers' Association United States & Canada investment policy model, noting that it would be helpful to not only the public but to City Council members as well. She provided copies of the glossary to the Committee members. Chair Foeller indicated that the glossary section should be added to the Investment Policy, and asked the Committee members to review the glossary for thoroughness.
City Treasurer Garrova also suggested that the Committee consider adding a section pertaining to bond proceeds. She indicated she would draft a section for the Committee to review at the next meeting and distributed a copy of the bond proceeds section from the City of Whittier's investment policy as an example.
Chair Foeller directed City Treasurer Garrova to prepare a redlined draft of the Investment Policy, which included the addition of the glossary section, bond proceeds section, and changes required by law, for review and approval by the Committee at the next meeting.
Chair Foeller asked if anyone had any problems with the proposed meeting dates for the remainder of 2002: May 30, August 22, and November 21. With no response, Chair Foeller confirmed the meeting dates.
With no further business, Chair Foeller asked for a motion to adjourn. City Treasurer Garrova so moved, City Manager Meyer seconded. Motion was unanimously approved.
Meeting adjourned at 4:30 p.m.
Next meeting scheduled for May 30, 2002, at 4:00 p.m. in the Administrative Services Department Conference Room.