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HomeMy WebLinkAbout10D Minutes - Audit Investment and Finance Committee 01/27/2015MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, January 27, 2015 — 10:00 a.m. CALL TO ORDER Chairman Gibson called the meeting to order at 10:00 a.m. ROLL CALL Present: Russell Campbell, Community Member Paul Gibson, Committee Chair / Finance Director Abram Goldman, Community Member Joseph Pradetto, Community Member Stanley Sperling, Committee Member Robert Spiegel, Mayor Pro-Tem Susan Marie Weber, Mayor John Wohlmuth, City Manager Also Present: Jared Burns, Desert Willow Golf Resort Jose Luis Espinoza, Assistant Finance Director Anthony Hernandez, Senior Financial Analyst Thomas Jeffrey, 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 Absent: David Erwin, City Attorney A. MINUTES OF THE MEETING OF NOVEMBER 25.2014 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 November 25, 2014. Motion was seconded by Member Wohlmuth and carried by a 7-0-1 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Weber and Wohlmuth voting AYE. Erwin ABSENT. Spiegel ABSTAIN. INVESTMENT & FINANCE COMMITTEE MINUTES JANUARY 27, 2015 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORTS FOR NOVEMBER AND DECEMBER 2014 Member Jeffrey reported that the book value of the City portfolio for the period ended December 31, 2014 was approximately $193 million. Interest earnings were approximately $67,000. Yield -to -maturity was approximately 0.42%. MOTION was made by Member Sperling to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Reports for November and December 2014. Motion was seconded by Member Wohlmuth and carried by an 8-0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Spiegel, Weber and Wohlmuth voting AYE. Erwin ABSENT. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR NOVEMBER AND DECEMBER 2014 Chairman Gibson 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), Riverside County Investment Pool, and Rabobank Investment Pool for November and December 2014. Motion was seconded by Member Campbell and carried by an 8-0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Spiegel, Weber and Wohlmuth voting AYE. Erwin ABSENT. C. CITY FINANCIAL REPORT FOR DECEMBER 2014 Chairman Gibson provided an overview of the report and highlighted the activity for the month of December 2014. MOTION was made by Member Pradetto to receive and file the City financial report for December 2014 as presented. Motion was seconded by Member Campbell and carried by an 8-0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Spiegel, Weber and Wohlmuth voting AYE. Erwin ABSENT. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR NOVEMBER AND DECEMBER 2014 Mr. Gibson provided an overview of the report. He informed the Committee that the HVAC installation project is complete, and they have been advised that the rooftop units must be screened from public view. An engineer has been hired to design suitable wind -resistant screening. MOTION was made by Member Pradetto to receive and file the Parkview Professional Office Buildings financial reports for November and December 2014 as presented. Motion was seconded by Member Campbell and carried 2 INVESTMENT & FINANCE COMMITTEE MINUTES JANUARY 27, 2015 by an 8-0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Spiegel, Weber and Wohlmuth voting AYE. Erwin ABSENT. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR NOVEMBER AND DECEMBER 2014 Mr. Burns provided a summary of the reports and highlighted the income, expenses and overall performance for the month of December. Mr. White added that catering and holiday parties increased significantly over the previous year and December was a great month overall despite bad weather and frost for the last week of the month. He also reported that January is going well so far, and the Dining under the Stars event was sold out. Member Sperling reported that he was at Desert Willow the week before, and was very impressed with great food, entertainment and ambiance. MOTION was made by Member Pradetto to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for November and December 2014 as presented. Motion was seconded by Member Sperling and carried by an 8-0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Spiegel, Weber and Wohlmuth voting AYE. Erwin ABSENT. F. CITY OF PALM DESERT AUDITED FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2014 Mr. Nitin Patel, CPA with White Nelson Diehl Evans, LLP provided a summary to the Committee of the scope of the audit, procedures followed, and responsibilities of the auditors and City staff. He also summarized each of the reports issued, including the GANN report and the Report on Internal Controls. Mr. Patel highlighted that the City received an unmodified, or clean, opinion. There were no material weaknesses and no findings issued. He then explained some of the upcoming GASB rules relative to reporting requirements. He indicated that there had been some difficulty regarding with slow responses from CalPERS when obtaining necessary State information. This will likely be a factor in delayed audit completion next year if the difficulty continues. Mr. Gibson highlighted Page 26 of the CAFR which summarized the operating budget, and indicated that the City had performed well this year. G. PALM DESERT RECREATIONAL FACILITIES CORPORATION AUDITED FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30 2014 Mr. Patel reported that this audit covers the food and beverage operation at Desert Willow. A liquor license is required for the sale of alcohol and California Department of Alcoholic Beverage Control rules state that a government agency cannot be awarded such a license. PDRFC was created for the purposes of obtaining the license, and is required to be audited as a separate component from the City. There were no findings. 3 INVESTMENT & FINANCE COMMITTEE MINUTES JANUARY 27, 2015 VI. CONTINUED BUSINESS None. VII. OLD BUSINESS None. VIII. INFORMATIONAL ITEMS None. IX. ADJOURNMENT MOTION was made by Member Pradetto to adjourn the meeting at 10:25 a.m. Motion was seconded by Member Campbell and carried by an 8-0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Spiegel, Weber and Wohlmuth voting AYE. Erwin ABSENT. Niamh Ortega, Recordi ecretary C!