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HomeMy WebLinkAboutMinutes - Audit Investment Finance Committee 11/24/2015N12 MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, November 24, 2015 -- 10:00 a.m. CALL TO ORDER Chairman Gibson called the meeting to order at 10:00 a.m. II. ROLL CALL IV. Present: Jose Luis Espinoza, Chair/Asst. Finance Director Abram Goldman, Community Member Robert Hargreaves, City Attorney Bob Leo, Community Member Stanley Sperling, Committee Member Susan Marie Weber, Mayor John Wohlmuth, City Manager Also Present: Jared Burns, Desert Willow Golf Resort Anthony Hernandez, Senior Financial Analyst Thomas Metz, Deputy City Treasurer Niamh Ortega, Recording Secretary Derek White, Desert Willow Golf Resort ORAL COMMUNICATIONS Absent: Russ Campbell, Community Member Paul Gibson, Chair/Finance Director Robert Spiegel, Mayor Pro-Tempore Mayor Weber thanked Committee members for their service to the City through the Audit, Investment and Finance Committee, and distributed gift cards to Community Members as a token of appreciation. Mr. Espinoza informed the Committee that Attorney of 42 years, recently passed away. their thoughts. APPROVAL OF MINUTES David Erwin, Committee member and City He asked that they keep Mr. Erwin's family in A. MINUTES OF THE MEETING OF OCTOBER 27.2015 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 October 27, 2015. Motion was seconded by Member Wohlmuth and carried by a 7-0 vote, with Espinoza, Goldman, Hargreaves, Leo, Sperling, Weber and Wohlmuth voting AYE; Campbell and Spiegel ABSENT. INVESTMENT & FINANCE COMMITTEE MINUTES NOVEMBER 24, 2015 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR OCTOBER 2015 Member Jeffrey reported that the book value of the City portfolio for the period ended October 31, 2015 was approximately $196.1 million. Interest earnings were approximately $77,000. Yield -to -maturity was approximately 0.49%. MOTION was made by Member Hargreaves to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Report for October 2015. Motion was seconded by Member Leo and carried by a 7-0 vote, with Espinoza, Goldman, Hargreaves, Leo, Sperling, Weber and Wohlmuth voting AYE; Campbell and Spiegel ABSENT. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR OCTOBER 2015 Chairman Espinoza provided an overview of the various reports. Member Goldman expressed concern regarding conflict and potential confrontations worldwide, and the impact such conflict would have on short-term and long-term investments. Mr. Espinoza assured the Committee that the City's first priority is to protect principal, so any investments made are typically very low -risk. Responding to question regarding investment percentages, Chairman Espinoza stated that some limits are set by the State, others are determined by cash flow. As an example, LA1F has a maximum of 50% of cash flow, whereas CAMP has a $50 million maximum. MOTION was made by Member Leo to receive and file the reports for Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), and Riverside County Investment Pool for October 2015. Motion was seconded by Member Sperling and carried by a 7-0 vote, with Espinoza, Goldman, Hargreaves, Leo, Sperling, Weber and Wohlmuth voting AYE; Campbell and Spiegel ABSENT. C. CITY FINANCIAL REPORT FOR OCTOBER 2015 Chairman Espinoza provided an overview of the report and highlighted the activity for the month of October 2015. He highlighted that TOT would remain close to budget, and although convention business is down, short-term rentals would make up for the majority of the shortfall. The City's sales tax consultant has indicated that earnings are on target to reach the $18.8 million budget. MOTION was made by Member Weber to receive and file the City financial report for October 2015 as presented. Motion was seconded by Member Wohlmuth and carried by a 7-0 vote, with Espinoza, Goldman, Hargreaves, Leo, Sperling, Weber and Wohlmuth voting AYE; Campbell and Spiegel ABSENT. 2 INVESTMENT & FINANCE COMMITTEE MINUTES NOVEMBER 24, 2015 D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR OCTOBER 2015 Mr. Hernandez provided an overview of the report, and informed the Committee that roof repairs would be performed in December. There are no new tenants; the office for the Virginia Waring International Piano Competition is relocating to another suite in the same building. MOTION was made by Member Sperling to receive and file the Parkview Professional Office Buildings financial report for October 2015 as presented. Motion was seconded by Member Hargreaves and carried by a 7-0 vote, with Espinoza, Goldman, Hargreaves, Leo, Sperling, Weber and Wohlmuth voting AYE; Campbell and Spiegel ABSENT. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORT FOR OCTOBER 2015 Mr. Burns provided a summary of the report, and reported that October was a challenging month. Year to date overall is down 9% to budget and 3% to prior year. The exchange rate for the Canadian dollar is having a significant impact, and there were some payroll overages due to maintaining full staff to convert to desert landscaping as part of the water conservation efforts. MOTION was made by Member Sterling to receive and file the Palm Desert Golf Course Facilities Corporation financial report for October 2015 as presented. Motion was seconded by Member Wohlmuth and carried by a 7-0 vote, with Espinoza, Goldman, Hargreaves, Leo, Sperling, Weber and Wohlmuth voting AYE; Campbell and Spiegel ABSENT. F. EXTENSION OF CONTRACT WITH WHITE NELSON DIEHL EVANS. LLP TO PERFORM AUDITING SERVICES FOR ONE ADDITIONAL YEAR MOTION was made by Member Leo to recommend that the City Council authorize an extension of contract with White Nelson Diehl Evans, LLP, to perform auditing services for one additional year ending June 30, 2016. Motion was seconded by Member Sperling and carried by a 7-0 vote, with Espinoza, Goldman, Hargreaves, Leo, Sperling, Weber and Wohlmuth voting AYE; Campbell and Spiegel ABSENT. G. CONSIDERATION OF ADJOURNMENT OF DECEMBER 22. 2015 MEETING TO THE NEXT REGULAR MEETING OF JANUARY 26.2016 MOTION was made by Member Wohlmuth to adjourn the December 22, 2015 meeting to the next regular meeting of January 26, 2016. Motion was seconded by Member Sperling and carried by a 7-0 vote, with Espinoza, Goldman, Hargreaves, Leo, Sperling, Weber and Wohlmuth voting AYE; Campbell and Spiegel ABSENT. 3 INVESTMENT & FINANCE COMMITTEE MINUTES NOVEMBER 24, 2015 VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. Vill. INFORMATIONAL ITEMS None. IX. ADJOURNMENT MOTION was made by Member Wohlmuth to adjourn the meeting at 10:25 a.m. Motion was seconded by Member Leo and carried by a 7-0 vote, with Espinoza, Goldman, Hargreaves, Leo, Sperling, Weber and Wohlmuth voting AYE; Campbell and Spiegel ABSENT. Respectfully submitted, r Niamh Ortega, Recor ' Secretary