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Home My WebLink AboutMinutes - Audit Investment and Finance Committee 03-23-2010 �� MINUTES � � REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, March 23, 2010 I. CALL TO ORDER Chairman Gibson called to order a regular meeting of the Palm Desert Audit, Investment and Finance Committee at 10:00 a.m. II. ROLL CALL Present: Absent: Paui Gibson, Finance Director John Wohlmuth, City Manager Luis Espinoza, Asst. Finance Director James Walker, Committee Member Thomas Jeffrey, Deputy City Treasurer Richard S. Kelly, Council Member Robert A. Spiegel, Council Member Justin McCarthy, ACM/Redevelopment David Erwin, CityAttorney CITYCOUNCILACTtON Jono Hildner, Committee Member AYPROVCD D��iIT;D Patricia Kent, Committee Member RECEIVED f �f�— �TNI,It _ Everett Wood, Committee Member MEF,TINC DATE (c-I "aC'l(�' __� Also Present: AYES: � ,,,.��j.t.�cn.��l r��.Sdi�dr�/, �f/��r� _. Jan Harnick, Member of the Public NOES: 1`��✓�.0 T Anthony Hernandez, Senior Financial Analyst�BSENT: --N�✓�� __ Niamh Ortega, Recording Secretary ABSTAIN: -� ��' r Veronica Tapia, RDA Accountant VERIFIED BY: Derek White, Desert Wiliow Original on File with City Clcrk' Office III. ORAL COMMUNICATIONS Mr. Gibson announced that the fourth quarter results were received from the State of California, indicating the fourth quarter was up 1.5%. This is the first quarter in the last four that has shown an increase. Starwood also submitted their payment of $312,000. IV. APPROVAL OF MINUTES A. MINUTES OF THE REGULAR MEETING OF FEBRUARY 23 2010 MOTION was made by Member Hildner and seconded by Member Spiegel to adopt and approve in their entirety the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee he/d on February 23, 2010. Member Kelly abstained. G:\Finance\Niamh Ortega\Investment Committee�2010\Minutes 032310.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES March 23. 2010 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR FEBRUARY 2010 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended February 28, 2010 was approximately $200.1 million. Interest earnings were approximately $227,000. Yield-to-maturity was approximately 1.41%. The book value of the Redevelopment Agency Portfolio for the period ended February 28, 2010 was approximately $304.2 million. Interest earnings were approximately $168,000. Yield-to-maturity was approximately 0.69%. MOTION was made by Member Hildner and seconded by Member Wood to recommend that the City Council receive and file the City and Redevelopment Agency Investment Schedu/es and Summary of Cash Reports for February 2010 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.) ACCOUNT STATEMENTS FOR FEBRUARY 2010 MOTION was made by Member Hildner and seconded by Member Erwin to receive and file the Loca/Agency Investment Fund account statements for February 2010 as presented. Motion unanimously approved. C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR FEBRUARY 2010 MOT/ON was made by Member Hildner and seconded by Member Erwin to receive and file the California Asset Management Program account statements for February 2010 as presented. Motion unanimously approved. D. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR FEBRUARY 2010 Chairman Gibson stated that sales tax was up 1.5%. Building activity is down to about half of what it was last year at this time. The mid-year report will go to Council in April 2010. MOT/ON was made by Member Erwin and seconded by Member Wood to receive and file the City financial reports for February 2010 as presented. Motion unanimously approved. Ms. Tapia reported monthly revenues in the amount of $1.3 million and expenditures in the amount of $1.39 million. Cumulative revenues are $48.8 million and expenditures are approximately $45.3 million. 2 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES March 23. 2010 Mr. McCarthy reported that the first hearing took place for the lawsuit regarding the ERAF shift. The judge requested additional information from both sides regarding the use of Redevelopment funds. No response is required from the City of Palm Desert. E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR FEBRUARY 2010 The Water Resources board is currently in the design process for tenant improvements. It is anticipated that the Fire Marshal's office will relocate to City Hall, leaving Suite 102 vacant. MOTION was made by Member Hildner and seconded by Member Erwin to receive and file the Parkview Professiona/ Office Buildings financial reports for February 2010 as presented. Motion unanimously approved. F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR FEBRUARY 2010 Mr. White reported that February was a good month. It was about $3,000 short of budget, and ended about $120,000 ahead of prior year, which is about 10%. Payroll expenses were at $378,000 versus a budget of $372,000 and prior year of $352,000. Operating expenses were $229,000, versus a budget of $267,000 and prior year of$198,000. Overall, year-to-date is about $112,000 ahead. March is moving ahead as well as February, and is on track to beat budget figures by about $50,000. Catering, although still slow, is starting to improve. Currently, 30 people a day are walking away from the dining room because there is a wait to be seated. With the terrace expansion, it is expected that seating and turnover will be better. MOTION was made by Member Hildner and seconded by Member Erwin to receive and file the Palm Desert Go/f Course Facilities Corporation financial reports for February 2010 as presented. Motion unanimously approved. G. AWARD OF BANKING AND CUSTODY SERVICES CONTRACT Following presentation to the Audit, Investment & Finance Committee at the January meeting, the contract was presented to and approved by Council. H. SINGLE AUDIT OF FEDERALLY ASSISTED GRANT PROGRAMS FOR THE FISCAL YEAR ENDED JUNE 30, 2009 Mr. Espinoza reported that the City received a good report from the auditors on the Single Audit. The Single Audit is bid as a part of the package for the regular audit, and they audit the grant programs for the City. It is performed after the regular audit and is a separate line item in case it does not need to be performed. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES March 23. 2010 MOTION made by Member Hildner and seconded by Member Wood to recommend that the City Council receive and file the Sing/e Audit of Federally Assisted grant programs for the fiscal year ended June 30, 2009. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE Member McCarthy reported that different options are currently being explored for Energy bond financing. VIII. INFORMATIONAL ITEMS Member Hildner asked when the budget meetings were scheduled for Council's review, and Mr. Gibson responded that they will be held on April 9, 26, and 30, 2010. Upon further question, it was indicated that the specific times would be provided via e-mail to Member Hildner. IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:25 a.m. to the next regular meeting of April 27, 2010. ..l % _ �.-� ^� Niamh Ortega, F� cording Secretary 4