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HomeMy WebLinkAboutMinutes - Audit Investment Finance Committee 02/23/2016MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, February 23, 2016 — 10:00 a.m. CALL TO ORDER Chairman Espinoza called the meeting to order at 10:00 a.m. ROLL CALL Present: Absent: Russ Campbell, Community Member Luis Espinoza, Acting Chair/Asst. Finance Director Abram Goldman, Community Member Robert Hargreaves, City Attorney Jan Harnik, Mayor Pro Tempore (10:07 a.m.) Bob Leo, Community Member Stanley Sperling, Committee Member Robert Spiegel, Mayor John Wohlmuth, City Manager Also Present: Anthony Hernandez, Senior Financial Analyst Thomas Metz, Deputy City Treasurer Niamh Ortega, Recording Secretary Nitin Patel, White Nelson Diehl Evans, LLP Jared Burns, Desert Willow Golf Resort Todd Kelly, Desert Willow Golf Resort Darrel Souza, Desert Willow Golf Resort III. ORAL COMMUNICATIONS None. IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF JANUARY 26. 2016 MOTION was made by Member Campbell to approve as presented the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on January 26, 2016. Motion was seconded by Member Leo and carried by a 8-0 vote, with Campbell, Espinoza, Goldman, Hargreaves, Leo, Sperling, Spiegel and Wohlmuth voting AYE; Harnik ABSENT. INVESTMENT & FINANCE COMMITTEE MINUTES February 23, 2016 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR JANUARY 2016 Member Metz reported that the book value of the City portfolio for the period ended January 31, 2016 was approximately $206.9 million. Interest earnings were approximately $101,000. Yield -to -maturity was approximately 0.60%. 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 January 2016. Motion was seconded by Member Wohlmuth and carried by a 8-0 vote, with Campbell, Espinoza, Goldman, Hargreaves, Leo, Sperling, Spiegel and Wohlmuth voting AYE; Harnik ABSENT. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENT FOR JANUARY 2016 Chairman Espinoza provided an overview of the various reports. 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 for January 2016. Motion was seconded by Member Wohlmuth and carried by a 8-0 vote, with Campbell, Espinoza, Goldman, Hargreaves, Leo, Sperling, Spiegel and Wohlmuth voting AYE; Harnik ABSENT. C. CITY FINANCIAL REPORT FOR JANUARY 2016 Chairman Espinoza provided an overview of the report and highlighted the activity for the month of January 2016. MOTION was made by Member Leo to receive and file the City financial report for January 2016 as presented. Motion was seconded by Member Campbell and carried by a 8-0 vote, with Campbell, Espinoza, Goldman, Hargreaves, Leo, Sperling, Spiegel and Wohlmuth voting AYE; Harnik ABSENT. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR JANUARY 2016 Mr. Hernandez provided an overview of the reports. MOTION was made by Member Campbell to receive and file the Parkview Professional Office Buildings financial report for January 2016 as presented. Motion was seconded by Member Wohlmuth and carried by a 9-0 vote, with Campbell, Espinoza, Goldman, Harnik, Hargreaves, Leo, Sperling, Spiegel and Wohlmuth voting AYE. K INVESTMENT & FINANCE COMMITTEE MINUTES February 23, 2016 E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR JANUARY 2016 Mr. Burns provided a summary of the report, and reported that while year to date revenues are down, Desert Willow is experiencing its best February to date excluding the leap year day. Food & Beverage is down, and the value of the Canadian dollar is impacting business and the number of Canadian visitors in the area. Staff continues to look for ways to increase revenue, and has added 12 nighttime events with the Jazz Jam Series and additional Dining Under the Stars events. MOTION was made by Member Leo to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for January 2016 as presented. Motion was seconded by Member Sperling and carried by a 9-0 vote, with Campbell, Espinoza, Goldman, Harnik, Hargreaves, Leo, Sperling, Spiegel and Wohlmuth voting AYE. F. CITY OF PALM DESERT AUDITED FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 (Joint Consideration with Items V.G & H) Mr. Nitin Patel, Partner with White Nelson Diehl Evans, LLP, presented an overview of the financial reports, summarized the responsibilities of his firm and City management, and reported that his firm issued an unmodified (clean) opinion for the fiscal year ended June 30, 2015. Mr. Patel highlighted several sections in the CAFR that provided additional information on the City's accounts. G. PALM DESERT RECREATIONAL FACILITIES CORPORATION AUDITED FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30. 2015 (Joint Consideration with Items V F & H) This report audits the food and beverage operation at Desert Willow. An unmodified opinion was issued for the operation. H. SINGLE AUDIT OF FEDERALLY ASSISTED GRANT PROGRAMS FOR THE FISCAL YEAR ENDED JUNE 30, 2015 (Joint Consideration with Items V.F & G) There is a requirement that if a City spends more than $500,000 from certain funds, a single audit must be performed. There were no material issues, and no findings in the single audit. Next year the threshold requirement increases to $750,000. MOTION was made by Member Leo to recommend that the City Council receive and file the City of Palm Desert Audited Financial Reports, the Palm Desert Recreational Facilities Corporation Audited Financial Reports, and the Single Audit of Federally Assisted Grant Programs for the fiscal year ended June 30, 2015. Motion was seconded by Member Campbell and carried by a 9-0 vote, with Campbell, Espinoza, Goldman, Harnik, Hargreaves, Leo, Sperling, Spiegel and Wohlmuth voting AYE. 3 INVESTMENT & FINANCE COMMITTEE MINUTES February 23, 2016 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 Campbell to adjourn the meeting at 10:34 a.m. Motion was seconded by Member Leo and carried by a 9-0 vote, with Campbell, Espinoza, Goldman, Harnik, Hargreaves, Leo, Sperling, Spiegel and Wohlmuth voting AYE. Respectfully submitted, C Niamh Ortega, Rec Secretary 4