HomeMy WebLinkAboutMinutes - Audit Investment Finance Committee 06/27/2017 ...............
MINUTES
i_ �► REGULAR MEETING OF THE PALM DESERT
w . AUDIT, INVESTMENT & FINANCE COMMITTEE
v.*;1 ` --(i Tuesday, June 27, 2017
I. CALL TO ORDER
Chairman Leo called the meeting to order at 10:00 a.m.
Present Absent
Lauri Aylaian, City Manager Brian Holcombe, Community Member
Russell Campbell, Vice-Chairman Sabby Jonathan, Mayor Pro Tempore
Jan Harnik, Mayor
Robert Leo, Chairman
Janet Moore, Director of Finance
Stan Sperling, Community Member
Jill Tremblay, City Attorney
Also Present
Luis Espinoza, Assistant Finance Director
Anthony Hernandez, Senior Financial Analyst
Thomas Metz, Deputy Treasurer
Niamh Ortega, Recording Secretary
Derek White, Desert Willow Golf Resort
II. ORAL COMMUNICATIONS
A. None
B. None
III. APPROVAL OF MINUTES
A. MINUTES OF THE MEETING OF MAY 23, 2017
MOTION was made by Member Campbell to approve the Minutes of the regular
meeting of the Palm Desert Audit, Investment and Finance Committee of May 23,
2017 as presented. Motion was seconded by Member Sperling and carried by a vote
of 6-0-1, with Aylaian, Campbell, Moore, Sperling, Tremblay and Leo voting AYE;
Holcombe and Jonathan ABSENT; Harnik ABSTAIN.
AUDIT, INVESTMENT & FINANCE COMMITTEE
MINUTES June 27, 2017
IV. NEW BUSINESS
A. FINANCIAL REPORT ON CITY INVESTMENT SCHEDULE AND SUMMARY
OF CASH THROUGH MAY 2017
Mr. Metz provided the report and stated that the book value for the month
ended May 31, 2017 was $2.82 million, interest earnings were $243,000, and
yield to maturity was 1.0%.
MOTION was made by Member Campbell to recommend that the City Council
approve the City Investment Report for the period ended May 31, 2017. Motion was
seconded by Member Harnik and carried by a vote of 7-0, with Aylaian, Campbell,
Harnik, Moore, Sperling, Tremblay and Leo voting AYE; Holcombe and Jonathan
ABSENT.
B. FINANCIAL REPORT ON LOCAL AGENCY INVESTMENT POOL
ACCOUNT STATEMENTS FOR MAY 2017
Mr. Metz provided the report. He indicated that there were no significant
changes this month. He noted that CAMP permits a higher balance, so he will
be allocating monies to CAMP to take full advantage of rising rates.
MOTION was made by Member Sperling to receive and file the reports for
Local Agency Investment Fund (LAIF), California Asset Management Program
(CAMP) and Riverside County Investment Pool through May 2017 as presented.
Motion was seconded by Member Harnik and carried by a vote of 7-0, with Aylaian,
Campbell, Harnik, Moore, Sperling, Tremblay and Leo voting AYE; Holcombe and
Jonathan ABSENT.
C. FINANCIAL REPORT ON CITY THROUGH MAY 2017
Member Moore reported property tax and sales tax have both increased over
last year. The City is on track with expenditures to budget at approximately
$50.5 million. She reminded the Committee that there are still a number of
revenue payments that have not been received by the City. Once these are
received, the report will reflect that the City is right on target with the budget.
Member Moore noted that there are amendments to the budget that occur
during the year but are not included on this report because staff wishes to
present a clear picture of actuals from prior year to current year.
Member Aylaian asked if the actual versus budgeted expenditures include
police service billings. She noted that the report reflects that the City is
approximately $3 million ahead of last year and 120% of year to date budget
with two more months to go. Member Moore responded that this was pretty
typical for the police account and explained that there are still invoices
outstanding. She furthered that the report compares expenditures to last
year's expenditures at this point in the year, and last year may not include as
many payments.
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AUDIT, INVESTMENT & FINANCE COMMITTEE
MINUTES June 27, 2017
MOTION was made by Member Campbell to receive and file the City financial
report through May 2017 as presented. Motion was seconded by Member Harnik and
carried by a vote of 7-0, with Aylaian, Campbell, Harnik, Moore, Sperling, Tremblay
and Leo voting AYE; Holcombe and Jonathan ABSENT.
D. FINANCIAL REPORT ON PARKVIEW PROFESSIONAL OFFICE
BUILDINGS THROUGH MAY 2017
Mr. Hernandez provided a summary of the report as provided. He informed
the Committee that staff would be taking an item to Council at the next
meeting to negotiate a lease.
MOTION was made by Member Sperling to receive and file the Parkview Office
Building financial report through May 2017 as presented. Motion was seconded by
Member Campbell and carried by a vote of 7-0, with Aylaian, Campbell, Harnik,
Moore, Sperling, Tremblay and Leo voting AYE; Holcombe and Jonathan ABSENT.
E. FINANCIAL REPORT ON PALM DESERT RECREATIONAL FACILITIES
CORPORATION THROUGH MAY 2017
Mr. White reported that May was a great month for Desert Willow, one of the
best on record. Food and beverage enjoyed its largest revenue to date when
compared to the month of May in previous years. There were a number of
prom nights and events such as the 20th anniversary celebration, Mother's
Day and other special events throughout the month. Expenses were higher
than both the budget and prior year expenditures, with the bulk of the
increase in payroll due to the minimum wage increase. Mr. White stated that
for the summer the restaurant would be open for breakfast and lunch, with the
kitchen closing around 3:30 p.m. daily.
Member Leo shared that he went to Desert Willow for Father's Day lunch,
and the restaurant was very accommodating with great service.
MOTION was made by Member Campbell to receive and file the Palm Desert
Recreational Facilities Corporation financial report through May 2017 as presented.
Motion was seconded by Member Sperling and carried by a vote of 7-0, Aylaian,
Campbell, Harnik, Moore, Sperling, Tremblay and Leo voting AYE; Holcombe and
Jonathan ABSENT.
F. MEMORANDUM RELATIVE TO THE UNIFORM GUIDANCE
PROCUREMENT REQUIREMENTS
Member Moore noted that this memorandum is being shared with the
Committee as information relative to requirements that will be implemented in
the near future.
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AUDIT, INVESTMENT & FINANCE COMMITTEE
MINUTES June 27, 2017
MOTION was made by Member Campbell to receive and file the memorandum
relative to the Uniform Guidance Procurement requirements. Motion was seconded
by Member Sperling and carried by a vote of 7-0, Aylaian, Campbell, Harnik, Moore,
Sperling, Tremblay and Leo voting AYE; Holcombe and Jonathan ABSENT.
V. CONTINUED BUSINESS - None
VI. OLD BUSINESS - None
VII. INFORMATIONAL ITEMS
Member Moore shared that she had recently met with Chairman Leo to discuss this
Committee's history and direction, and that he had shared a number of ideas and
observations that he would like the Committee to take into consideration. Chairman
Leo added that he would like to see an item added to the agenda in the future to
discuss any trends identified in the community that may affect the City's finances.
Committee members should also add any thoughts or views that they have so that
staff and members can be prepared for upcoming events and trends.
Mayor Harnik informed members that at a recent International Council of Shopping
Centers (ICSC) conference, there was a great deal of discussion surrounding the
need to redefine retail. Trends and thinking have changed significantly over the past
30 years, so it would serve staff and Council well to explore this topic and make sure
that Palm Desert remains relevant.
Chairman Leo stated he also attended a conference with an emphasis on housing.
He shared that the population and communities are moving away from single-family
residences and are looking to occupy more multi-family residences. This is good to
keep in mind for any new projects with which the City may become involved.
VIII. ADJOURNMENT
With Committee concurrence, Chairman Leo adjourned the meeting at 10:28 a.m.
Niamh Ortega, Recordin retary
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