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Home My WebLink AboutAudt Inv & Fin Cmte - 05/26/09 �,._�� MINUTES � � REGULAR MEETING OF THE PALM DESERT � AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, May 26, 2009 I. CALL TO ORDER Chairman Gibson called to order a regular meeting of the Palm Desert Audit, Investment and Finance Committee at 10:02 a.m. II. ROLL CALL Present: Absent: Paul Gibson, Finance Director Robert A. Spiegel, Mayor Luis Espinoza, Asst. Finance Director Cindy Finerty, Mayor Pro-Tempore John Wohlmuth, City Manager Justin McCarthy, ACM/Redevelopment Thomas Jeffrey, Deputy City Treasurer David Erwin, City Attorney Stephanie Loog, Community Member James Walker, Community Member Everett Wood, Community Member CI'�'Y COl1NCILACT�nN Also Present: ��'�'f�{��'�'-�� _ ?a�:�,Ar;;�� Anthony Hernandez, Senior Financial Analyst ��-c�-jV�U E i �, ��-G ��,�� - Richard Mogensen, Desert Willow �T- Niamh Ortega, Recording Secretary ��-��=��'1'�(� �)ATE ` ']�C2 � �� Veronica Tapia, RDA Accountant AYf;�:�`'iY� n.Fe��i�o�, �i)PF�v � ��;�� --- Derek White, Desert Willow Golf Resort N()ES: _N��. t'��1'��._____._ f4[3�i;1�IT: ��'n�- A��S�'�t:�: N�n� III. ORAL COMMUNICATIONS VE6Zi�t�:[) �3v�_ n �-q Ori�;inal on I+ile with City Clerf.'s U(�iice None. IV. APPROVAL OF MINUTES A. MINUTES OF THE REGULAR MEETING OF APRIL 28 2009 MOTION was made by Member Wohlmuth and seconded by Member Loog to adopt and approve in their entirety the minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on April 28, 2009. Motion passed. G:\Finance\Niamh Ortega\Investment Committee�2009\Minutes\Minutes 052609.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES MAY 26. 2009 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR APRIL 2009 Member Jeffrey presented the report highlighted the following points: The book value of the City Portfolio for the period ended April 30, 2009 was approximately $218 million. Interest earnings were approximately $360,000. Yield-to-maturity was approximately 2.09%. The book value of the Redevelopment Agency Portfolio for the period ended April 30, 2009 was approximately $252.5 million. Interest earnings were approximately $219,000. Yield-to-maturity was approximately 1.05%. $50 million in Redevelopment Agency bonds were moved to LAIF, and the remainder should be moved over the next two weeks, which will result in an improvement in yield. MOTION to recommend that Council receive the report as presented made by Member Finerty, seconded by Member Erwin, and unanimously approved. B. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.) ACCOUNT STATEMENTS FOR APRIL 2009 The report was received and filed. C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR APRIL 2009 The report was received and filed. D. CITY FINANCIAL REPORTS FOR AUGUST AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR APRIL 2009 Chairman Gibson reported that the City's revenue is $29.4 million for the year to date. Last year's total for the same time was $31.4 million. Ms. Scott reported that RDA revenues were approximately $532,000, and expenditures were $1.5 million. E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR APRIL 2009 Staff recently met with State planners to discuss ADA building requirements for the Parkview building. At this point, the requirements involve re-carpeting and re- painting in the offices, and lowering some countertops. 2 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES MAY 26, 2009 F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR APRIL 2009 April's revenue is down by 15% over last year. Payroll is an 11% reduction, and operation expenditures are also down. The rounds mix indicates a drop in public and outing play. Rounds to date are down 6% overall, and the average rate is down 14%. Redevelopment staff is reviewing the feasibility of a solar proposal for Desert Willow. The Mountain View course is currently under renovation. This was not something that was budgeted for this fiscal year, and will be reflected in the upcoming months. Golf shop revenues are down substantially, and clothing sales are seeing the largest decline. Inventory has been reduced to mitigate expenses. Discussion took place regarding how to reduce the expense and entice buyers at the golf shop. Mr. Mogensen stated that it is more cost-effective to run the shop in-house rather than contracting it out, and it typically shows a gross profit of 50%. Member Finerty noted that the budgeting for Desert Willow has been optimistic. It was agreed that the budget for Desert Willow should be reviewed by the Audit, Investment Committee prior to Council review at their June meeting. There was concern regarding the timing of the renovations of the golf course. Member McCarthy responded that the City follows a policy of maintaining the quality of play and experience at the course. While there are many things that could be done, they would ultimately degrade the asset long-term. The renovations are designed to restore the greens so that quality play continues. Starwood will be opening their new timeshares at the course in January, and it is to the City's advantage to have the course in the best shape possible at that time. It is anticipated that approximately one round per unit per week will come from the timeshare, and fifty or sixty units will be released in the first phase. At the conclusion of the project, approximately 312 units will be in place. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PUBLIC AND PRIVATE PARTNERSHIP BACKGROUND CHECKS No report. B. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE Staff is moving ahead with the bond issuance through Wells Fargo, and expects to go to City Council for authorization on June 25, 2009. Funds should be available by the end of July. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES MAY 26 2009 VIII. INFORMATIONAL ITEMS None. IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:34 a.m. to the next regular meeting of June 23, 2009. ��-,.,,��C� Niamh Ortega, Recordi Secretary 4