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Home My WebLink AboutMinutes - Audit Invetment Finance Committee 09/27/2016MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, September 27, 2016 CALL TO ORDER Madam Chairman Moore called the meeting to order at 10:00 a.m. ROLL CALL Present: Absent: Russ Campbell, Community Member Robert Spiegel, Mayor Robert Hargreaves, City Attorney Jan Harnik, Mayor Pro Tempore Brian Holcombe, Community Member Robert Leo, Community Member Justin McCarthy, Interim City Manager (10:07 a.m.) Janet Moore, Chair/Finance Director Stanley Sperling, Committee Member Also Present: Anthony Hernandez, Senior Financial Analyst Thomas Metz, Deputy City Treasurer Niamh Ortega, Recording Secretary Nitin Patel, CPA, White Nelson Diehl Evans, LLP Derek White, Desert Willow Golf Resort III. ORAL COMMUNICATIONS None. IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF JUNE 28, 2016 MOTION was made by Member Harnik to approve as presented the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on June 28, 2016. Motion was seconded by Member Campbell and carried by a 6-0-1 vote, with Campbell, Hargreaves, Harnik, Leo, Sperling and Moore voting AYE; McCarthy and Spiegel ABSENT; Holcombe ABSTAIN. INVESTMENT & FINANCE COMMITTEE MINUTES September 27, 2016 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR JUNE, JULY AND AUGUST 2016 Mr. Metz reported that the book value of the City portfolio for the period ended June 30, 2016 was approximately $192.8 million. Interest earnings were approximately $126,000. Yield -to -maturity was approximately 0.83%. Mr. Metz also reported that the book value of the City portfolio for the period ended August 31, 2016 was approximately $193.7 million. Interest earnings were approximately $137,000. Yield -to -maturity was approximately 0.86%. He highlighted various aspects of the report for informational purposes. MOTION was made by Member Leo to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Report for the months of June, July and August 2016. Motion was seconded by Member Campbell and carried by a 7-0 vote, with Campbell, Hargreaves, Harnik, Holcombe, Leo, Sperling and Moore voting AYE; McCarthy and Spiegel ABSENT. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR JUNE, JULY AND AUGUST 2016 Mr. Metz 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 June, July and August 2016. Motion was seconded by Member Leo and carried by a 8-0 vote, with Campbell, Hargreaves, Harnik, Holcombe, Leo, McCarthy, Sperling and Moore voting AYE; Spiegel ABSENT. C. CITY FINANCIAL REPORTS FOR JUNE, JULY AND AUGUST 2016 Madam Chairman Moore provided an overview of the report and highlighted the activity for the month of June 2016. She noted that sales tax and triple flip payments received were higher than anticipated. TOT also increased due to short-term rentals and non -convention hotel business. Expenditures were within budget. Reviewing the August report, Madam Chairman Moore noted that most of the revenue received was to be applied to the last fiscal year, and this was typical for July and August every year. July's sales tax was estimated at $950,000, which is in line with last year. MOTION was made by Member Campbell to receive and file the City financial reports for June, July and August 2016 as presented. Motion was seconded by Member Leo and carried by a 8-0 vote, with Campbell, Hargreaves, Harnik, Holcombe, Leo, McCarthy, Sperling and Moore voting AYE; Spiegel ABSENT. 2 INVESTMENT & FINANCE COMMITTEE MINUTES September 27, 2016 D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR JUNE, JULY AND AUGUST 2016 Mr. Hernandez provided an overview of the reports, and indicated the occupancy rate is 95%. There was discussion relative to the refresh project occurring at the buildings, and it was suggested that the staff member leading the project, Mr. Rudy Acosta, should be asked to provide a progress update at the next Committee meeting. MOTION was made by Member Harnik to receive and file the Parkview Professional Office Buildings financial reports for June, July and August 2016 as presented. Motion was seconded by Member Campbell and carried by a 8-0 vote, with Campbell, Hargreaves, Harnik, Holcombe, Leo, McCarthy, Sperling and Moore voting AYE; Spiegel ABSENT. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR JUNE, JULY AND AUGUST 2016 Mr. White provided an overview of his report. He mentioned that year-end revenue was down 7%, and this was attributed in part to the decrease in Canadian traffic. He pointed out that despite the decrease Desert Willow is still beating its competition in green fees. Mr. White continued that there had not been a lot of activity over the summer. The Firecliff renovation went well, and staff is excited about the performance of the redesigned bunkers. Overseeding is scheduled, with Firecliff first followed by Mountain View. The first concert of the year is scheduled for November 10. The platinum card program is underway and doing well. MOTION was made by Member Sperling to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for June, July and August 2016 as presented. Motion was seconded by Member Campbell and carried by a 8-0 vote, with Campbell, Hargreaves, Harnik, Holcombe, Leo, McCarthy, Sperling and Moore voting AYE; Spiegel ABSENT. F. REVIEW OF AUDIT GUIDELINES AND DISCUSSION OF WORK BEING PERFORMED ON AUDIT FOR FISCAL YEAR ENDED JUNE 30, 2016 Mr. Nitin Patel, CPA with White Nelson Diehl Evans, LLP introduced himself to the Committee. He discussed the responsibilities, scope and timing of the audit, pointing out that the audit does not relieve management of its responsibilities. The purpose of the audit is to provide reasonable rather than absolute assurance that the City, its officers and staff are using best financial practices to perform the tasks required of a city government, and to communicate any potential concerns at the conclusion of the audit. Mr. Patel informed the Committee that the work is in progress. Auditors traveled to Lodi to review documents housed at RPM's head office of record, and hoped to finish the City's documents by the end of this month. He expects to issue a 3 INVESTMENT & FINANCE COMMITTEE MINUTES September 27, 2016 report in December and attend the Committee meeting in January 2017 to review with staff and members. MOTION was made by Member Leo to receive the report by Mr. Nitin Patel relative to the audit guidelines and discussion of work being performed on the audit for the fiscal year ended June 30, 2016. Motion was seconded by Member Campbell and carried by a 8-0 vote, with Campbell, Hargreaves, Harnik, Holcombe, Leo, McCarthy, Sperling and Moore voting AYE; Spiegel ABSENT. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE, None. Vill. INFORMATIONAL ITEMS A. AUTHORIZE THE PREPARATION OF DOCUMENTS NECESSARY FOR THE ISSUANCE OF TAX ALLOCATION REFUNDING BONDS AND TAKING RELATED ACTIONS Madam Chairman Moore stated that this report was presented at the most recent Council meeting and is provided to the Committee as an informational item only. She indicated that staff is looking at the process of refinancing debt to avail of lower interest rates, resulting in a savings to the City. Member McCarthy added that a representative from the County of Riverside sits on the Oversight Board, and the County has been working with many cities, encouraging them to take advantage of the lower rates. Madam Chairman Moore added that the Successor Agency will pay any incurred costs at bond closure. These costs will not be the City's responsibility. IX. ADJOURNMENT With Committee concurrence, Madam Chairman Moore adjourned the meeting at 10:31 a.m. Respectfully submitted, Niamh Ortega, Reco 'ng Secretary 4