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HomeMy WebLinkAboutMinutes - Finance Committee 11/26/2019�. El MINUTES REGULAR MEETING OF THE PALM DESERT FINANCE COMMITTEE Tuesday, November 26, 2019 CALL TO ORDER Chairman Leo called the meeting to order at 10:00 a.m. Committee Members: Absent: Karen Alexander, Member Russell Campbell, Vice -Chair Robert Leo, Chair Susan Marie Weber, Mayor Gina Nestande, Mayor Pro -Temp Also Present: Guests: Lauri Aylaian, City Manager (armved at 10 41 a.m.) Janet M. Moore, Director of Finance Anthony Hernandez, Senior Financial Analyst Veronica Tapia, Senior Management Analyst Patty Leon, Recording Secretary Eric Ceja, Principal Planner Derek White, General Manager - Desert Willow Golf Resort ORAL COMMUNICATIONS III. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF SEPTEMBER 24, 2019 MOTION was made by Member Campbell to approve the Minutes of the regular meeting of the Palm Desert Finance Committee held on September 24, 2019. Motion was seconded by Member Alexander and carried by a 4-0 vote, with Alexander, Campbell, Nestande, and Leo voting AYE. IV. NEW BUSINESS A. REPORT ON CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH FOR SEPTEMBER AND OCTOBER 2019 Mrs. Janet Moore provided a summary of the reports, reporting the yield -to - maturity interest has gone down. The City's investment portfolio has been laddered out for 2 to 3 years in an attempt to lessen the effects in the event FINANCE COMMITTEE MINUTES NOVEMBER 26, 2019 the rumors about negative interest rates are of any consequence. She reminded the Committee of a time when interest rates were .01 % back in 2015 and 2016. MOTION was made by Member Campbell to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Reports for September and October 2019. Motion was seconded by Member Alexander and carried by a 5-0 vote, with Alexander, Campbell, Nestande, Weber and Leo voting AYE. B. STATEMENTS FOR LOCAL AGENCY INVESTMENT POOL ACCOUNT FOR SEPTEMBER AND OCTOBER 2019 Mrs. Moore reported the same types of returns for CAMP and LAIF at approximately 2% rate. She noted that staff decided to divest from the Riverside County accounts as the returns are lower than CAMP and LAIF. MOTION was made by Member Campbell to receive and file the reports for Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), and Riverside County Investment Pool for September and October and August 2019. Motion was seconded by Member Campbell and carried by a 5-0 vote, with Alexander, Campbell, Nestande, Weber and Leo voting AYE. C. FINANCIAL REPORT FOR CITY OF PALM DESERT THROUGH OCTOBER 2019 Mrs. Moore summarized the report, highlighting the City's actuals were very close to last year. The hotel, formerly known as Fairfield Inn, that was destroyed by a fire 5 years ago, was issued a Certificate of Occupancy and is anticipated to open soon. She further noted that sales tax remains consistent with what was projected. Member Nestande commented that a report from the Greater Palm Springs Convention and Visitors Bureau (CVB) showed TOT was down 7% from last year as well as short-term rentals were down 33%. She asked how this would affect the City financially. Mrs. Moore stated that staff took into consideration the reduction in TOT for short-term rentals at the time the City Council extended the phase out period to December. Therefore, TOT received from July to December was not included into projections for FY 19/20 so the effect of such a reduction in the Coachella Valley may offset the increase that was not included. Mr. Derek White commented that the CVB report indicated that the whole market was down in September but moving forward looked good. 2 FINANCE COMMITTEE MINUTES NOVEMBER 26, 2019 MOTION was made by Member Campbell to receive and file the financial report for the City of Palm Desert through October 2019. Motion was seconded by Member Alexander and carried by a 5-0 vote, with Alexander, Campbell, Nestande, Weber and Leo voting AYE. D. FINANCIAL REPORT FOR PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT THROUGH OCTOBER 2019 Mr. Hernandez provided a summary of both September and October reports. MOTION was made by Member Campbell to receive and file the financial report for the Parkview professional office buildings through April 2019. Motion was seconded by Member Weber and carried by a 5-0 vote, with Alexander, Campbell, Nestande, Weber and Leo voting AYE. E FINANCIAL REPORT ON DESERT WILLOW GOLF RESORT THROUGH OCTOBER 2019 Mr. White provided a summary of operations through October 2019, highlighting a record -breaking revenue for the month of October. Member Leo asked if an increase to minimum wage is anticipated. Mr. White responded that minimum wage has increased by 10% every year and has been included in the budget projections. MOTION was made by Member Campbell to receive and file the financial report for the Desert Willow Golf Resort through August 2019. Motion was seconded by Member Alexander and carried by a 5-0 vote, with Alexander, Campbell, Nestande, Weber and Leo voting AYE. V. CONTINUED BUSINESS None. VI OLD BUSINESS None. VII. INFORMATIONAL ITEMS 3 FINANCE COMMITTEE MINUTES NOVEMBER 26, 2019 A. PRESENTATION RELATIVE TO UPCOMING PROJECTS (ERIC CEJA, PRINCIPAL PLANNER) Eric Ceja, Principal Planner, provided a presentation of upcoming projects relative to transportation, housing and commercial in Palm Desert. He provided a brief overview of the following projects: 1) Desert Surf Project proposed at Desert Willow; 2) El Paseo's crosswalks, considered a demonstration project; 3) Housing at University Park, Ponderosa Homes, and the Revel/Avenida communities both considered for active seniors: 4) The Sands project has been placed on hold until a new developer is on board, 5) CV Link project anticipates a construction date of May 2020; 6) San Pablo project phase 2 to start May 2020; and 7) Development of commercial stores and hotels are being considered on Avenue of the States (Casey's Lot), Technology Drive, and Monterey Crossings. B. COMMITTEE MEMBER COMMENTS C. REQUEST TO ADD POTENTIAL ITEMS TO UPCOMING AGENDA D. STAFF NOTES Member Weber thanked the Committee members for their service and distributed thank you cards from the City Council. VIII ADJOURNMENT The meeting was adjourned at 10.51 a.m, to the next regular meeting of January 28, 2020. P,espectfully submitte PattyLeon R�ordin Secreta � 9 rY El