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Home My WebLink AboutMinutes - Audit Investment and Finance Commitee 02-23-2010 �� MINUTES � �� REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, February 23, 2010 I. CALL TO ORDER Chairman Gibson cailed to order a regular meeting of the Palm Desert Audit, Investment and Finance Committee at 10:00 a.m. II. ROLL CALL Present: Absent: Paul Gibson, Finance Director Luis Espinoza, Asst. Finance Director Thomas Jeffrey, Deputy City Treasurer Cindy Finerty, Mayor Bob Spiegei, Council Member John Wohlmuth, City Manager Justin McCarthy, ACM/Redevelopment David Erwin, City Attorney Jono Hildner, Committee Member Patricia Kent, Committee Member Everett Wood, Committee Member James Walker, Committee Member CITY COtINCILACTIt)1�' Also Present: AYPROVF:D � ��a1'�''�,�� _-- Jan Harnick, Memberofthe Public RECEIVED � �� }�r�� ------- Anthony Hernandez, Senior Financial An��+ -- ----- - Niamh Ortega, Recording Secretary MEF.TING DAT -� �� - Veronica Tapia, RDA Accountant AYF.S: � � '-- Derek White, Desert Willow NOES:1S�r��F ABSENT: �°� �' ABSTAIN: � � III. ORAL COMMUNICATIONS VERIFIED BY; Original on File with �ty Clerk's Office None. IV. APPROVAL OF MINUTES A. MINUTES OF THE REGULAR MEETING OF JANUARY 26, 2010 MOTION was made by Member Hildner and seconded by Member Wood to adopt and approve in their entirety the Minutes of the regular meeting of the Pa/m Desert Audit, lnvestment and Finance Committee he/d on January 26, 2010. Member Spiegel abstained. G:\Finance\Niamh Ortega\Investment Committee\2010\Minutes 022310.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES February 23. 2010 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR JANUARY 2010 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended January 31, 2010 was approximately $218 million. Interest earnings were approximately $221,000. Yield-to-maturity was approximately 1.31%. The book value of the Redevelopment Agency Portfolio for the period ended January 31, 2010 was approximately $287 million. Interest earnings were approximately $183,000. Yield-to-maturity was approximately 0.72%. MOT/ON was made by Member Finerty and seconded by Member Wood to recommend that the City Council receive and file the City and Redeve/opment Agency Investment Schedules and Summary of Cash Reports for January 2010 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.) ACCOUNT STATEMENTS FOR JANUARY 2010 MOTION was made by Member Finerty and seconded by Member Erwin to receive and file the Loca/ Agency Investment Fund account statements for January 2010 as presented. Motion unanimously approved. C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR JANUARY 2010 MOTION was made by Member Finerty and seconded by Member Erwin to receive and file the California Asset Managemenf Program account statements for January 2010 as presented. Motion unanimous/y approved. D. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR JANUARY 2010 Chairman Gibson indicated that the ERAF and Proposition 1A payments have been received. General government expenditures are slightly above the expected year-to-date expenditures due to Outside Agency funds and early retirements paid out in July 2009. Ms. Tapia reported monthly revenues in the amount of $21.8 million and expenditures in the amount of $15 million. Cumulative revenues are $47.5 million and expenditures are approximately $44.2 million. MOTION was made by Member Finerty and seconded by Member Erwin to receive and file the City and Redeve/opment Agency financia/ reports for January 2010 as presented. Motion unanimously approved. 2 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES February 23. 2010 E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR JANUARY 2010 There are two small spaces, 400 sq. ft. and 700 sq. ft. available for lease. No interest has been expressed in leasing these spaces. The Water Resources board is currently in the design process for tenant improvements. MOTION was made by Member Finerty and seconded by Member Hildner to receive and file the Parkview Professiona/ Office Buildings financial reports for January 2010 as presented. Motion unanimously approved. F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR JANUARY 2010 Mr. White reported that January was an excellent month, and although it was just shy of budgeted figures, it ended about $70,000 ahead of prior year, which is about 8%. Operating expenses were about the same, and even with the slight shortfall in revenue, they still beat budget by approximately $9.000. Overall, year- to-date is about $71,000 ahead. February green fees are currently about $80,000 ahead of prior year. The Committee was reminded that if the cash flow fell below $500,000, Kemper Management is held responsible for funding. MOTION was made by Member Finerty and seconded by Member Wood to receive and file the Palm Desert Go/f Course Facilities Corporation financial reports for January 2010 as presented. Motion unanimously approved. G. AWARD OF BANKING AND CUSTODY SERVICES CONTRACT MR. Jeffrey offered a summary of the interviews that took place and the differences between the banking firms as determined in the application and interview process. While a number of firms were solicited and the project was advertized through the normal bidding process, there were only two firms submitting a bid. JP Morgan and Union Bank were both interviewed, and it was decided based on a number of factors that Union Bank was the better choice for the upcoming term, and that JP Morgan's bid was considered unresponsive. MOTION was made by Member Hildner and seconded by Member Spiege/ to recommend that the City Council award the Banking and Custody Services contracf to Union Bank for a term of five years. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS None. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES February 23. 2010 V111. INFORMATIONAL ITEMS It was noted that the singie audit has been completed and will come before the Committee at the next meeting. Member Hildner questioned if it was appropriate for the Committee to review services contracts such as auditing and banking, and other services that are contracted out rather than staff perform the work. Member Spiegel answered that because Palm Desert is a contract city, almost everything is contracted out. Chairman Gibson also responded that each department handles their own contracts, and all go through the regular bidding process and are approved by Council. As such, it was not a necessary function of this Committee to review all contracts. Additionally, the audit includes a sampling of City contracts to ensure they are in compliance with bidding procedures. IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:28 a.m. to the next regular meeting of March 23, 2010. � � �,}�,�: �.�_C\ Niamh Ortega, R ording Secretary 4