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HomeMy WebLinkAboutMinutes - Audit Investment Finance Committee 04/26/2016IV MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, April 26, 2016 — 10:00 a.m. CALL TO ORDER Chairman Gibson called the meeting to order at 10:00 a.m. ROLL CALL Present: Russ Campbell, Community Member Paul Gibson, Chair/Finance Director Abram Goldman, Community Member Robert Hargreaves, City Attorney Jan Harnik, Mayor Pro Tempore (10:10) Bob Leo, Community Member Justin McCarthy, Interim City Manager Stanley Sperling, Committee Member Absent: Robert Spiegel, Mayor Also Present: 011ie Becker, Desert Willow Golf Resort 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 ORAL COMMUNICATIONS Chairman Gibson introduced Interim City Manager Justin McCarthy, who provided a summary of his prior experience and past employment for members who were new to the Committee since Mr. McCarthy last served. Mr. White introduced Mr. Casey Negrete and Mr. 011ie Becker, who recently joined Desert Willow staff. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF MARCH 22, 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 March 22, 2016. Motion was seconded by Member Campbell and carried by a 7-0 vote, with Campbell, Gibson, Goldman, INVESTMENT & FINANCE COMMITTEE MINUTES April 26, 2016 Hargreaves, Leo, McCarthy and Sperling voting AYE; Harnik and Spiegel ABSENT. V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR MARCH 2O16 Member Metz reported that the book value of the City portfolio for the period ended March 31, 2016 was approximately $182.9 million. Interest earnings were approximately $116,000. Yield -to -maturity was approximately 0.79%. The Committee was reminded that cash flow was negatively affected by the dissolution of the Redevelopment Agency, and it is still evident in ongoing monthly reports. 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 March 2016. Motion was seconded by Member Sperling and carried by a 7-0 vote, with Campbell, Gibson, Goldman, Hargreaves, Leo, McCarthy and Sperling voting AYE; Harnik and Spiegel ABSENT. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENT FOR MARCH 2016 Chairman Gibson provided an overview of the various reports. 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 March 2016. Motion was seconded by Member Leo and carried by a 7-0 vote, with Campbell, Gibson, Goldman, Hargreaves, Leo, McCarthy and Sperling voting AYE; Harnik and Spiegel ABSENT. C. CITY FINANCIAL REPORT FOR MARCH 2O16 Chairman Gibson provided an overview of the report and highlighted the activity for the month of March 2016. MOTION was made by Member Leo to receive and file the City financial report for March 2016 as presented. Motion was seconded by Member Campbell and carried by an 8-0 vote, with Campbell, Gibson, Goldman, Hargreaves, Harnik Leo, McCarthy and Sperling voting AYE; Spiegel ABSENT. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR MARCH 2O16 Mr. Hernandez provided an overview of the reports, and indicated that staff is currently gathering input and suggestions from tenants regarding a potential renovation of the Parkview building. 2 INVESTMENT & FINANCE COMMITTEE MINUTES April 26, 2016 MOTION was made by Member Campbell to receive and file the Parkview Professional Office Buildings financial report for March 2016 as presented. Motion was seconded by Member Leo and carried by an 8-0 vote, with Campbell, Gibson, Goldman, Hargreaves, Harnik Leo, McCarthy and Sperling voting AYE; Spiegel ABSENT. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR MARCH 2O16 Mr. White reported that the course was doing well until the last week of the month. He summarized the report provided to the Committee and indicated that he expects payroll costs to rise as the minimum wage continues to increase. He also reported that staff intends to reduce the hours of operation during the summer months to offset payroll and other miscellaneous expenses, and cited currency exchange rates and decreased Canadian visitors as factors for decreased play. Ms. Harnik requested a matrix that shows the costs to operate various courses. Mr. White responded that such information is included in the marketing report, and he will provide it to the Committee at an upcoming meeting. The information will also provide a direct comparison to the Indian Wells courses. A more legible version of the regular monthly report is being finalized as software issues are resolved. These reports should be available at the next meeting. MOTION was made by Member Leo to congratulate Desert Willow staff, and receive and file the Palm Desert Golf Course Facilities Corporation financial reports for March 2016 as presented. Motion was seconded by Member Campbell and carried by an 8-0 vote, with Campbell, Gibson, Goldman, Hargreaves, Harnik Leo, McCarthy and Sperling voting AYE; Spiegel ABSENT. F. APPROVAL OF INVESTMENT BROKERS Member Metz provided a summary of his report. MOTION was made by Member Leo to recommend that the City Council approve Wells Fargo Securities, Jefferies, Piper Jaffray and Stifel, Nicolaus, and conditionally approve J.P Morgan Securities as broker -dealers for the City of Palm Desert. Motion was seconded by Member Campbell and carried by an 8-0 vote, with Campbell, Gibson, Goldman, Hargreaves, Harnik Leo, McCarthy and Sperling voting AYE; Spiegel ABSENT. G. RECEIVE AND FILE THE INDEPENDENT ACCOUNTANTS' REPORTS ON APPLYING AGREED -UPON PROCEDURES OF VARIOUS PALM DESERT OPERATORS FOR COMPLIANCE WITH THE CITY OF PALM DESERT'S TRANSIENT OCCUPANCY TAX ORDINANCE FOR THE 2014 AND 2014 CALENDAR YEARS MOTION was made by Member McCarthy to receive and file the Independent Accountants' Reports on Applying Agreed -Upon Procedures of Various Palm Desert Operators for Compliance with the City of Palm Desert's Transient Occupancy Tax Ordinance for the 2014 and 2014 Calendar Years. 3 INVESTMENT & FINANCE COMMITTEE MINUTES April 26, 2016 Motion was seconded by Member Leo and carried by an 8-0 vote, with Campbell, Gibson, Goldman, Hargreaves, Harnik Leo, McCarthy and Sperling voting AYE; Spiegel ABSENT. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. VIII. INFORMATIONAL ITEMS Member McCarthy congratulated Chairman Gibson on his upcoming retirement at the end of the week after 31 years with the City of Palm Desert. He thanked Chairman Gibson for bringing the City through some tough times during his career, and wished him well in the next chapter of his journey. Chairman Gibson responded that he had enjoyed working for the City and was proud of what was accomplished. He thanked his staff for their assistance over the years. IX. ADJOURNMENT MOTION was made by Member Campbell to adjourn the meeting at 10:41 a.m. Motion was seconded by Member Leo and carried by an 8-0 vote, with Campbell, Gibson, Goldman, Hargreaves, Harnik Leo, McCarthy and Sperling voting AYE; Spiegel ABSENT. Respectfully submitted, � 1\ Niamh Ortega, c rding Secretary 0