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HomeMy WebLinkAboutMinutes - Finance Committee 07/28/2020MINUTES MEETING OF THE PALM DESERT FINANCE COMMITTEE (VIRTUAL MEETING) Tuesday, July 28, 2020 CALL TO ORDER Chairman Leo called the meeting to order at 10:00 a.m. II. ROLL CALL All present participated teleconference. Present: Absent: Robert Leo, Chair Russell Campbell, Vice -Chair Karen Alexander, Member Mayor Gina Nestande Mayor Pro Tern Kathleen Kelly Also Present: Lauri Aylaian, City Manager Janet M. Moore, Director of Finance/City Treasurer Jose Luis Espinoza, Assistant Finance Director Thomas Metz, Deputy City Treasurer Anthony Hernandez, Senior Financial Analyst Derek White, General Manager - Desert Willow Golf Resort Martin Alvarez, Director of Economic Development Patty Leon, Recording Secretary III. ORAL COMMUNICATIONS IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF MAY 26. 2020 MOTION was made by Member Campbell to approve the Minutes of the meeting of the Palm Desert Finance Committee held on May 26, 2020. Motion was seconded by Member Alexander and, carried by a 4-0 vote, AYES: Alexander, Campbell, Kelly, Nestande, and Leo; NOES: None. V. NEW BUSINESS A. REPORT ON CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH FOR MAY AND JUNE 2020 FINANCE COMMITTEE MINUTES JULY 28, 2020 Thomas Metz provided a summary of the reports, highlighting the City's book value for May 2020 was approximately $268 million, and the yield -to -maturity rate was 0.84%. MOTION was made by Member Alexander to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Reports for May and June 2020. Motion was seconded by Member Campbell and carried by a 4- 0 vote, AYES: Alexander, Campbell, Kelly, Nestande, and Leo; NOES: None. B. STATEMENTS FOR LOCAL AGENCY INVESTMENT POOL ACCOUNT FOR MAY AND JUNE 2020 Thomas Metz provided a summary of the reports. MOTION was made by Member Alexander to receive and file the reports for Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), and Riverside County Investment Pool for May and June 2020. Motion was seconded by Member Nestande and carried by a 4-0 vote, AYES: Alexander, Campbell, Kelly, Nestande, and Leo; NOES: None. C. FINANCIAL REPORT FOR CITY OF PALM DESERT THROUGH MAY AND JUNE 2020 Janet Moore provided an overview of the report, stating that June's report is preliminary as there are still outstanding expenditures that are not included in June's year-to-date actuals. We are anticipating a bill from the Sheriff's Dept. of approximately $3 - 3.5 million. Mrs. Moore also reported that the City received a sales tax payment that is not included in the report. The report only shows totals through April; an update will be provided at the next Finance Committee meeting. Mrs. Moore further noted that the City did not make an additional payment to CalPERS, the monies were instead saved for operations for the 19/20 year due to COVID 19; the City Council was made aware of this change during the budget study sessions. Member Robert Leo asked if there are speculations on how far down we will be on the sales tax. Mrs. Moore replied that there will be a significant decline in both sales tax and TOT. Sales tax are expected to go down 25% and the City expects a 45% decline in TOT this fiscal year. Staff is closely monitoring revenue 2 FINANCE COMMITTEE MINUTES JULY 28, 2020 comparisons from last year to this year. The City Council has authorized the use of reserves to cover the difference. MOTION was made by Member Alexander to receive and file the financial report for the City of Palm Desert through June 2020. Motion was seconded by Member Nestande and carried by a 5-0 vote, AYES: Alexander, Campbell, Kelly, Nestande, and Leo; NOES: None. D. FINANCIAL REPORT FOR PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT THROUGH JUNE 2020 Mr. Hernandez provided a summary of the revenue and expenses for the Parkview buildings. He stated he is currently negotiating an extended lease with Mountain Conservancy. A new tenant will be presented to the City Council related to CV Link who is currently working with CVAG. MOTION was made by Member Alexander to receive and file the financial report for the Parkview professional office buildings through June 2020. Motion was seconded by Member Kelly and carried by a 5-0 vote, AYES: Alexander, Campbell, Kelly, Nestande, and Leo; NOES: None. E. FINANCIAL REPORT ON DESERT WILLOW GOLF RESORT THROUGH JUNE 2020 Derek White provided a summary of operations through June 2020 highlighting a record breaking year in golf revenue. Food and beverage revenue dropped since the closing; weddings were postponed based on CDC guidelines. Mr. White stated that the Summer Loyalty Program has been very popular and in fact doubled its sales from last year. Mr. White also added that results from a customer service survey, provided to every golf player, showed 3200 surveys returned this year and a net promoter score of just under 90%, a measurement of the question 'would you recommend Desert Willow to a friend or family'. Member Kathleen Kelly commended Mr. White and the Desert Willow team for their hard work. MOTION was made by Member Campbell to receive and file the financial report for the Desert Willow Golf Resort through June 2020. Motion was seconded by Member Alexander and carried by a 5-0 vote, AYES: Alexander, Campbell, Kelly, Nestande, and Leo; NOES: None. 3 FINANCE COMMITTEE MINUTES JULY 28, 2020 VI. CONTINUED BUSINESS None. VII. OLD BUSINESS None. VIII. INFORMATIONAL ITEMS A. PRESENTATIONS (Martin Alvarez, Director of Economic Development) 1. iHUB Director of Economic Development, Martin Alvarez, provided pictures of the Palm Desert IHUB. He stated that iHUB partnered with the Coachella Valley Economic Partnership and California State University San Bernardino. The iHUB will aim to attract technology -based entrepreneurial startup businesses as well as offer local student interns an opportunity to work with technology based companies. Mr. Alvarez stated that there has been a lot of interest, however iHUB remains closed due to COVID. 2. Unite Palm Desert Economic Relief Program Mr. Alvarez provided a power point presentation of the economic relief program. He stated that in May of 2020 the City Council approved a program better known as 'Unite Palm Desert Local Economic Relief Program' that would assist local businesses who were affected by the pandemic in terms of rent/mortgage, utilities, etc. The program was offered to businesses that have less than 25 employees. Submittal of applications closed June 3'd with 288 applications received totaling $3.4 million of funds requested. The City Council pledged $1 million towards this program. A subcommittee was formed to provide guidance, review and scoring of applications. Based on the rankings, a total of 160 businesses were funded totaling $1 million. Mr. Alvarez thanked Mayor pro -temp Kathleen Kelly and councilmember Sabby Jonathan for their participation. Member Nestande asked about additional funding for this program and its progress. Mr. Alvarez stated that an updated report will be presented to the City Council in August which will give an opportunity for discussion of possibly additional funds. Member Leo asked if there is stipulation in the loan grant in the event a business goes out of business during the five-year term. IIs FINANCE COMMITTEE MINUTES JULY 28, 2020 Mr. Alvarez replied that there is wording in the promissory note that protects the . City's funds. The economic development staff will monitor the businesses periodically to ensure they are complying with the terms of the program and that they are still in business. B. COMMITTEE MEMBER COMMENTS Member Alexander commented that the shops on El Paseo are looking "bleak" and also asked who is responsible of maintaining the sidewalks as she has seen lots of debris along the sidewalks. Lauri Aylaian stated that the Economic Development Department continues to recruit businesses to fill in vacancies considering the pandemic. With regard to the cleanliness of the sidewalks, Mrs. Aylaian stated that the City maintains the public right of way which includes a third of the sidewalks. She mentioned she would look further on the current conditions of the sidewalks. C. REQUEST TO ADD POTENTIAL ITEMS TO UPCOMING AGENDA No report. IX. ADJOURNMENT The meeting was adjourned at 10:51 a.m. to the next regular meeting of September 22, 2020. Res ectfully submi5faaj poutq Patty Leon, Re6ording Secretary 5