HomeMy WebLinkAboutMinutes - Audit Investment Finance Committee 10/25/2016 ..• T--- MINUTES
` �i�, �r► REGULAR MEETING OF THE PALM DESERT
r 4/i r AUDIT, INVESTMENT & FINANCE COMMITTEE
,11W!" . Tuesday, October 25, 2016
I. CALL TO ORDER
Madam Chairman Moore called the meeting to order at 10:05 a.m.
II. ROLL CALL
Present: Absent:
Russ Campbell, Community Member Robert Spiegel, Mayor
Robert Hargreaves, City Attorney Brian Holcombe, Community Member
Jan Harnik, Mayor Pro Tempore Stanley Sperling, Committee Member
Robert Leo, Community Member
Lauri Aylaian, City Manager
Janet Moore, Chair/Finance Director
Also Present:
Anthony Hernandez, Senior Financial Analyst
Thomas Metz, Deputy City Treasurer
Casey Negrete, Desert Willow Golf Resort
Niamh Ortega, Recording Secretary
Derek White, Desert Willow Golf Resort
III. ORAL COMMUNICATIONS
None.
IV. APPROVAL OF MINUTES
A. MINUTES OF THE MEETING OF SEPTEMBER 27, 2016
MOTION was made by Member Leo to approve as presented the Minutes of
the regular meeting of the Palm Desert Audit, Investment and Finance
Committee held on September 27, 2016. Motion was seconded by Member
Campbell and carried by a 5-0-1 vote, with Campbell, Hargreaves, Harnik,
Leo and Moore voting AYE; Holcombe, Sperling and Spiegel ABSENT;
Aylaian ABSTAIN.
INVESTMENT & FINANCE COMMITTEE
MINUTES October 25, 2016
V. NEW BUSINESS
A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR
SEPTEMBER 2016
Mr. Metz reported that the book value of the City portfolio for the period ended
September 30, 2016 was approximately $192.1 million. Interest earnings were
approximately $131,000. Yield-to-maturity was approximately 0.87%. He noted
that four commercial papers had matured, dropping the book value. He assured
the Committee that a current issue surrounding Wells Fargo is confined to the
retail bank, and does not impact the investment side of operations. Additionally,
the City is currently maxed out on its concentration of Wells Fargo and will not be
buying for quite a while. Member Harnik requested that this note be made in the
investment packet that goes to Council.
•
MOTION was made by Member Campbell to recommend that the City
Council receive and file the City Investment Schedule and Summary of Cash
Report for the month of September 2016. Motion was seconded by Member
Leo and carried by a 6-0 vote, with Aylaian, Campbell, Hargreaves, Harnik,
Leo and Moore voting AYE; Holcombe, Sperling and Spiegel ABSENT.
B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR
SEPTEMBER 2016
Mr. Metz provided an overview of the various reports. He highlighted that the LAIF
investment rate is 0.63%, the County Pool is 0.6% and CAMP is the highest at
0.64%.
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
2016. Motion was seconded by Member Leo and carried by a 6-0 vote, with
Aylaian, Campbell, Hargreaves, Harnik, Leo and Moore voting AYE;
Holcombe, Sperling and Spiegel ABSENT.
C. CITY FINANCIAL REPORT FOR SEPTEMBER 2016
Madam Chairman Moore provided an overview of the report for the month of
September 2016. She noted that revenues are staggered throughout the year,
with the majority being received by the City in January and June.
MOTION was made by Member Leo to receive and file the City financial
report for September 2016 as presented. Motion was seconded by Member
Campbell and carried by a 6-0 vote, with Aylaian, Campbell, Hargreaves,
Harnik, Leo and Moore voting AYE; Holcombe, Sperling and Spiegel
ABSENT.
D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR
SEPTEMBER 2016
Mr. Hernandez provided an overview of the report.
2
INVESTMENT & FINANCE COMMITTEE
MINUTES October 25, 2016
MOTION was made by Member Harnik to receive and file the Parkview
Professional Office Buildings financial reports for September 2016 as
presented. Motion was seconded by Member Leo and carried by a 6-0 vote,
with Aylaian, Campbell, Hargreaves, Harnik, Leo and Moore voting AYE;
Holcombe, Sperling and Spiegel ABSENT.
E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL
REPORTS FOR SEPTEMBER 2016
Mr. White informed the Committee that the Firecliff renovation was complete in
September, and was a successful month overall. He reviewed the month-end
report, and indicated that green fees were higher than expected, even with the
ongoing renovation. He highlighted the "Music and Dining under the Stars"
program, and announced that a "classic rock and brew" monthly event would be
added to the lineup.
Mr. White reminded the Committee to make reservations if they planned to attend
the Thanksgiving dinner, as spots fill up fast. They are expecting 400-500 people
this year. He also announced a seven-course wine pairing dinner that is in
process for the near future. It would be limited to 40 people, and he will pass on
new information as it becomes available.
MOTION was made by Member Campbell to receive and file the Palm Desert
Golf Course Facilities Corporation financial reports for September 2016 as
presented. Motion was seconded by Member Harnik and carried by a 6-0
vote, with Aylaian, Campbell, Hargreaves, Harnik, Leo and Moore voting
AYE; Holcombe, Sperling and Spiegel ABSENT.
VI. CONTINUED BUSINESS
None.
VII. OLD BUSINESS
A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE
None.
VIII. INFORMATIONAL ITEMS
A. PRESENTATION RELATIVE TO MEASURE T, MAINTAINING ESSENTIAL
SERVICES IN PALM DESERT (D. Hermann, Sr. Management Analyst)
Mr. Hermann provided an overview of Measure T, which will be on the ballot in
November 2016. Given that this year is a presidential election and the placement
of Measure T as the last one on the ballot, staff wanted to ensure that it was not
overlooked and the public is aware of its purpose.
3
INVESTMENT & FINANCE COMMITTEE
MINUTES October 25, 2016
Mr. Hermann highlighted that Measure T would increase the Transient Occupancy
Tax charged at hotels, vacation homes and other lodging establishments from 9%
to 11%. He stressed that unlike a sales tax increase, the TOT increase would not
affect residents unless they were renting a room or other property requiring TOT
payment. The funds generated would go to the General Fund to offset the rising
costs of public safety among other expenses.
Funds going to the General Fund are used for varying costs, and the City cannot
earmark the 2% increase specifically for public safety without it becoming a
special tax. While the funds cannot be dedicated, the City wants its residents to
know that it is dedicated to public safety.
B. PRESENTATION RELATIVE TO PARKVIEW REFRESH PROJECT (R. Acosta)
Mr. Acosta summarized the process that led staff to the current point of the
project. He informed the Committee that the tenants were surveyed to determine
their priorities. After much discussion and review, a budget estimate of $400,000
to $500,000 was established, dependent upon the extent of restroom renovations.
Mr. Acosta presented some architectural renderings of potential improvements. It
was noted that should the solar panel relocation be a part of the final project, the
budget would change significantly.
The project will be presented to Council as it is currently not a budgeted item. It
also will require presentation to and approval of the Architectural Review
Committee before moving forward.
Members Harnik and Leo both commented that the refresh is certainly needed as
the building is showing its age. Member Aylaian asked why this building was
chosen in particular since other buildings within the Civic Center area are of the
same design. Mr. Acosta responded that this would be the first stage of an overall
refresh project, and Parkview was chosen in part because its leased office space
is a revenue generator for the City.
IX. ADJOURNMENT
With Committee concurrence, Madam Chairman Moore adjourned the meeting at 10:56 a.m.
Respectfully submitted,
Niamh Ortega, Rec..4 g Secretary
4