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HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee 03/26/2019MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, March 26, 2019 CALL TO ORDER Chairman Leo called the meeting to order at 10:00 a.m. II. ROLL CALL Present: Absent: Karen Alexander, Community Member Lauri Aylaian, City Manager Russell Campbell, Community Member Robert Hargreaves, City Attorney Brian Holcombe, Community Member Janet Moore, Finance Director Gina Nestande, Mayor Pro-Tempore Susan Marie Weber, Mayor Robert Leo, Chair Also Present: Jared Burns, Desert Willow Golf Resort Jose Luis Espinoza, Assistant Finance Director Anthony Hernandez, Senior Financial Analyst Thomas Metz, Deputy City Treasurer Niamh Ortega, Recording Secretary Derek White, Desert Willow Golf Resort III. ORAL COMMUNICATIONS Chairman Leo welcomed new Committee Member Karen Alexander, and conducted a round -table introduction of members and staff. IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF JANUARY 22, 2019, MOTION was made by Member Hargreaves to approve the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on January 22, 2019. Motion was seconded by Campbell carried by a 9-0 vote, with Alexander, Aylaian, Campbell, Hargreaves, Holcombe, Moore, Nestande, Weber and Leo voting AYE. INVESTMENT & FINANCE COMMITTEE MINUTES MARCH 26, 2019 V. NEW BUSINESS A. REPORT ON CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH THROUGH FEBRUARY 2019 Mr. Thomas Metz provided a summary of the report, highlighting that the City's book value for February 28, 2019 was $251.7 million, and the yield -to -maturity rate was 2.44%. He noted that the book balance was $5 million higher than the previous month due to the property tax revenue payment arriving on February 1. It is usually received in January each year. MOTION was made by Member Weber to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Report through February 2019. Motion was seconded by Member Campbell and carried by a 9-0 vote, with Alexander, Aylaian, Campbell, Hargreaves, Holcombe, Moore, Nestande, Weber and Leo voting AYE. B. STATEMENTS FOR LOCAL AGENCY INVESTMENT POOL ACCOUNTS THROUGH FEBRUARY 2019 Mr. Metz reported no change to the LAIF account. Funds were transferred from the County account to the CAMP account to take advantage of higher earnings rates. Funds will be redistributed once rates are comparable in both accounts. 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 through February 2019. Motion was seconded by Member Weber and carried by a 9-0 vote, with Alexander, Aylaian, Campbell, Hargreaves, Holcombe, Moore, Nestande, Weber and Leo voting AYE. C. FINANCIAL REPORT FOR CITY OF PALM DESERT THROUGH FEBRUARY 2019 Member Moore provided an overview of the report. She highlighted that sales tax is comparable to budget and on track with expectations. Member Holcombe asked if Hotel Paseo's opening has led to an increase in TOT. Member Moore responded that with 150 rooms, this property would not significantly raise or lower the overall TOT for Palm Desert. A larger hotel such as Marriott's Desert Springs property with almost 900 rooms would have a considerably greater impact. MOTION was made by Member Campbell to receive and file the financial report for the City of Palm Desert through February 2019. Motion was seconded by Member Weber and carried by a 9-0 vote, with Alexander, Aylaian, Campbell, Hargreaves, Holcombe, Moore, Nestande, Weber and Leo voting AYE. PAI INVESTMENT & FINANCE COMMITTEE MINUTES MARCH 26, 2019 D. FINANCIAL REPORT FOR PARKVIEW PROFESSIONAL OFFICE BUILDINGS THROUGH FEBRUARY 2019 Mr. Anthony Hernandez provided a brief summary of the report. He highlighted that a current tenant has requested to lease additional space. This request will be taken to Council, and general tenant improvements will be performed as soon as the lease is approved. MOTION was made by Member Campbell to receive and file the financial report for the Parkview professional office buildings through February 2019. Motion was seconded by Member Weber and carried by a 9-0 vote, with Alexander, Aylaian, Campbell, Hargreaves, Holcombe, Moore, Nestande, Weber and Leo voting AYE. E. FINANCIAL REPORT FOR DESERT WILLOW GOLF RESORT THROUGH FEBRUARY 2019 Mr. Derek White reported that February was a wet and chilly month, and the revenue was down due to frost delays and rain days. The weather also affected food and beverage performance and there were some savings on labor costs. Year-to-date revenue was $698,000 versus a prior year of $667,000. MOTION was made by Member Weber to receive and file the financial report for the Desert Willow Golf Resort through February 2019. Motion was seconded by Member Hargreaves and carried by a 9-0 vote, with Alexander, Aylaian, Campbell, Hargreaves, Holcombe, Moore, Nestande, Weber and Leo voting AYE. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS None. VIII. INFORMATIONAL ITEMS A. PRESENTATION RELATIVE TO COST RECOVERY FOR EMERGENCY SERVICES (STEPHEN ARYAN, RISK MANAGER) Member Moore reported that Mr. Aryan was unable to attend the meeting due to illness, and offered apologies on his behalf. He will present at the next regularly scheduled meeting. She stated that although the presentation was postponed, she wanted to inform the Committee that cost recovery was approximately $495,000 since the program began. 3 INVESTMENT & FINANCE COMMITTEE MINUTES MARCH 26, 2019 B. COMMITTEE MEMBER COMMENTS None. C. REQUEST TO ADD POTENTIAL ITEMS TO UPCOMING AGENDA Member Moore noted that staff has drafted bylaws for the Committee, and it is currently awaiting the City Attorney's review. She continued that staff is proposing a revision to the composition of the Committee, removing staff and the City Attorney as voting members and potentially adding a fifth member of the public in addition to the two Council members. Member Moore hopes to present this item at the next regular meeting. Member Moore also stated that staff was working on a bond refunding for University Park and requested two members of the Committee to serve as subcommittee members for underwriter selection. Chairman Leo and Member Holcombe volunteered to participate in the process. Chairman Leo asked that a future presentation be considered for retail sales and trends over the last couple of years. Member Moore stated that at a future meeting she would facilitate a presentation relative to San Pablo improvements once construction begins. IX. ADJOURNMENT By Minute Motion duly made and seconded, the Committee meeting was adjourned at 10:29 a.m. to the next regular meeting of May 28, 2019. Respectfully submitted, Niamh Ortega, Recording retary 4