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HomeMy WebLinkAboutMinutes Audit INvestment and Finance Committee 01/24/06MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, January 24, 2006 CALL TO ORDER Mr. Gibson called to order a regular meeting of the Palm Desert Audit, Investment, and Finance Committee at ten o'clock in the morning. II. ROLL CALL Present: Absent: Dick Kelly, Mayor Pro-Tempore Jim Ferguson, Mayor Bob Spiegel, Councilmember Paul Gibson, Finance Director/Treasurer Luis Espinoza, Asst. Finance Director Thomas Jeffrey, Deputy City Treasurer Carlos Ortega, City Manager Justin McCarthy, ACM/Redevelopment Russ Campbell, Community Member Dixie Proulx, Community Member Bill Veazie, Community Member Everett Wood, Community Member Also Present: Anthony Hernandez, Senior Financial Analyst Arla Scott, Senior Financial Analyst Veronica Tapia, Redevelopment Accountant Rodney Young, Desert Willow Golf Resort General Manager Niamh Ortega, Recording Secretary Richard K. Kikuchi, Lance, Soll & Lunghard III. ORAL COMMUNICATIONS None. IV. APPROVAL OF MINUTES A. MINUTES OF THE REGULAR MEETING OF NOVEMBER 23, 2005 MOTION was made by Mr. Campbell and seconded by Mr. Wood to adopt and approve in their entirety the minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on November 23, 2005. Motion passed. AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JANUARY 24, 2006 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR NOVEMBER AND DECEMBER 2005 Mr. Jeffrey highlighted the following points of the City and RDA investment reports for November and December 2005, respectively: The book value of the City Portfolio for November 2005 was approximately $146.9 million. Interest earnings were approximately $440,000. Yield -to -maturity was approximately 3.81 %. The book value of the RDA Portfolio for November 2005 was approximately $121.2 million. Interest earnings were approximately $361,000. Yield -to -maturity was approximately 3.68%. The book value of the City Portfolio for December 2005 was approximately $143.2 million. Interest earnings were approximately $460,000. Yield -to -maturity was approximately 3.95%. The book value of the RDA Portfolio for December 2005 was approximately $125.4 million. Interest earnings were approximately $385,000. Yield -to -maturity was approximately 3.82%. Mr. Jeffrey gave the Committee an update on the credit ratings of Ford Motor Company. Mr. Jeffrey noted that Ford continued to have a strong balance sheet and exceptional liquidity, with $25 billion in cash, and $6.5 billion of unrestricted bank lines. Ford made a $2 billion profit in 2005. B. APPROVAL OF 2006 CORPORATE ISSUER LISTS FOR COMMERCIAL PAPER AND MEDIUM -TERM NOTES MOTION was made by Mr. Campbell and seconded by Mr. Veazie that the Audit, Investment, and Finance Committee approve the 2006 Corporate Issuer Lists for Commercial Paper and for Medium -Term Notes, as submitted. Motion passed. C. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.) ACCOUNT STATEMENTS FOR NOVEMBER AND DECEMBER 2005 The reports were reviewed and placed on file. D. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR NOVEMBER AND DECEMBER 2005 The reports were reviewed and placed on file. 2 WAAgenda Items12006-July 13Vnvestment Committee minuteslMinutes 012506.doc AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JANUARY 24, 2006 E. CITY AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR NOVEMBER AND DECEMBER 2005 Reports for the Redevelopment Agency were reviewed and placed on file. Reports for the City will be presented at the next regular meeting. Ms. Arla Scott was introduced to the Committee. Mr. McCarthy announced that Ms. Scott was hired as Senior Financial Analyst for the Redevelopment Agency, and would assume the responsibilities that Mr. Coleman oversaw prior to his departure. F. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR NOVEMBER AND DECEMBER 2005 The report was reviewed and placed on file. Mr. Gibson noted that the State of California recently gave the City notice that all offices leased by the State must comply with energy conservation regulations and that the two-story Parkview building, which consists of primarily State -leased offices, must be certified as such. Mr. Gibson indicated that the air conditioning units should be updated, but that would be the only item that would require attention in order to bring the building up to the standards required by the State. G. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORT FOR NOVEMBER AND DECEMBER 2005 Mr. Young reported that the golf course was continuing to do well. In 2005, the property had revenues of over $9 million, up from $8.1 million for the 2004 calendar year. Net operating income for 2005 calendar year was $312,000. Additionally, for the 2005 calendar year, the course recorded 89,661 rounds versus prior year of 83,765. Mr. Young stated that 2004 was an exceptional year, yet 2005 proved to be even better, and he is optimistic that 2006 will continue in the same trend. H. PRESENTATION BY LANCE, SOLL & LUNGHARD RELATIVE TO 2005 AUDITS FOR CITY OF PALM DESERT, PALM DESERT REDEVELOPMENT AGENCY, PALM DESERT RECREATIONAL FACILITIES CORPORATION, AND LIMITED PROCEDURES REVIEW OF TRANSIENT OCCUPANCY TAX Mr. Gibson introduced Mr. Richard Kikuchi of Lance, Soll & Lunghard, LLP, who performed the 2005 audits. Mr. Kikuchi provided a brief overview of the audit process. He indicated that the audit focused on the balance sheet accounts, cash and investments, receivables and fixed assets, and that it went very smoothly. A management letter was issued and there were no reportable conditions this past year. Mr. Kikuchi stated that the operations of the City of Palm Desert are very efficient. MOTION that the Committee receive Council accept the 2005 audits for the Desert Redevelopment Agency made Campbell, unanimously approved. 3 and file and recommend that the City of Palm Desert and the Palm by Mr. Wood, seconded by Mr. WAAgenda Items12006-July 13Vnvestment Committee minuteslMinutes 012506.doc AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JANUARY 24, 2006 Mr. Gibson reviewed the 2005 audit of the Palm Desert Recreational Facilities Corporation. This item was continued to the next meeting pending review of the full document by the Committee. Mr. Gibson presented the Limited Procedures Review of Transient Occupancy Tax. MOTION that the Committee receive and file and recommend that the Council accept the 2005 Limited Procedures Review of Transient Occupancy Tax made by Mayor Pro-Tempore Kelly, seconded by Mr. Campbell, unanimously approved. REVIEW AND RECOMMEND APPROVAL OF 2005 MEASURE "A" AUDIT Mr. Gibson informed the Committee that the City received funds for Measure "A" and that an audit was conducted to ensure that funds are being spent appropriately. There were no findings. MOTION that the Committee receive and file and recommend that the Council accept the 2005 Measure "A" audit made by Mr. Wood, seconded by Mr. Campbell, unanimously approved. J. DISCUSSION RELATIVE TO REVISED MEETING TIME AND LOCATION Mr. Gibson informed the Committee that the most suitable time for the Council members to meet was on the fourth Tuesday of the month at 10:00 a.m. Members agreed that this time was also suitable for them. MOTION to revise the regular meeting date of the Audit, Investment and Finance Committee to the fourth Tuesday of the month at 10:00 a.m. in the North Wing Conference Room made by Mr. Campbell, seconded by Mr. Wood, unanimously approved. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PUBLIC AND PRIVATE PARTNERSHIP BACKGROUND CHECKS No report. B. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE No report. VIII. MEMBER COMMENTS None. 4 WAAgenda Items12006-July 13Vnvestment Committee minuteslMinutes 012506.doc AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JANUARY 24, 2006 IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded, and carried, was adjourned at 11:10 a.m. Niamh Ortega, Recording Secretary 5 WAAgenda Items12006-July 13Vnvestment Committee minuteslMinutes 012506.doc