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HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee February 22, 2011MINUTES REGULAR MEETING OF THE PALM DESERT VP AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, February 22, 2011 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: Paul Gibson, Finance Director Jean Benson, Mayor Luis Espinoza, Asst. Finance Director Everett Wood, Committee Member Thomas Jeffrey, Deputy City Treasurer Robert A. Spiegel, Mayor Pro Tempore John Wohlmuth, City Manager David Erwin, City Attorney Justin McCarthy, ACM/Redevelopment Patricia Kent, Committee Member Susan Marie Weber, Committee Member James Walker, Committee Member Also Present: Anthony Hernandez, Senior Financial Analyst Richard Mogensen, Desert Willow Gol ,�s )I" CII ACTION Niamh Ortega, Recording Secretary A PPROV1:la Veronica Tapia, RDA Accountant IZECEIVF.D 0- F.Ic IFIt Derek White, Desert Willow Golf Resort MEETING DAZf �- a$���C 1 � AVES: ni ryonrnIII. ORAL COMMUNICATIONS NOES: NL,ae_ ABSENT: O None. ABSTAIN: NOOL VERIFIED BY: ( IV. APPROVAL OF MINUTES Original on File with City Clerk's ffice A. MINUTES OF THE REGULAR MEETING OF JANUARY 25, 2011 MOTION was made by Member Spiegel and seconded by Member Erwin to adopt and approve in their entirety the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on January 25, 2011. G-TinanceWiamh Ortega\Investment Committee\2011\Minutes 022211.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES February 22, 2011 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR JANUARY 2011 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended January 31, 2011 was approximately $191.6 million. Interest earnings were approximately $115,000. Yield -to -maturity was approximately 0.66%. The book value of the Redevelopment Agency Portfolio for the period ended January 31, 2011 was approximately $270.5 million. Interest earnings were approximately $135,000. Yield -to -maturity was approximately 0.68%. MOTION was made by Member Walker and seconded by Member Erwin to recommend that the City Council receive and file the City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for January 2011 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.) ACCOUNT STATEMENTS FOR JANUARY 2011 MOTION was made by Member Walker seconded by Member Erwin to receive and We the Local Agency Investment Fund account statements for January 2011 as presented. Motion unanimously approved. C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR JANUARY 2011 MOTION was made by Member Walker and seconded by Member Spiegel to receive and file the California Asset Management Program account statements for January 2011 as presented. Motion unanimously approved. D. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR JANUARY 2011 Chairman Gibson presented the City's report. He indicated that overall the City was performing above budget, TOT numbers are slightly better than last year, and sales tax is above last year's figures. AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES February 22, 2011 Ms. Tapia reviewed the monthly revenues and expenses for the Redevelopment Agency. Year-to-date revenue for the end of January 2011 was $58.9 million, and expenditures were $54.3 million. MOTION was made by Member Walker and seconded by Member Erwin to receive and file the City and Redevelopment Agency financial reports for January 2011 as presented. Motion unanimously approved. E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR JANUARY 2011 Mr. Hernandez reviewed the monthly report. MOTION was made by Member Spiegel and seconded by Member Walker to receive and file the Parkview Professional Office Buildings financial reports for January 2011 as presented. Motion unanimously approved. F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR JANUARY 2011 Revenue was reported at $973,000 versus a budget of $977,000. Operations were $282,000 versus a budget of $256,000 and $228,000 for the prior year. Expenses are over budget due to those incurred for the grand opening of the restaurant in January. Year to date overall, the course is ahead of budget by $152,000. Golf is holding at budgeted levels, and while ADR is still a challenge, it is doing well. Resident play is high at 41 %, and loyalty programs continue to do well. MOTION was made by Member Spiegel and seconded by Member Erwin to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for January 2011 as presented. Motion unanimously approved. G. SINGLE AUDIT OF FEDERALLY ASSISTED GRANT PROGRAMS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 Mr. Espinoza summarized the report and highlighted that the expenditures can be found on Pages 5 and 6. He also pointed out that there were no findings. MOTION to recommend that the City Council receive and file the Single Audit of Federally Assisted Grant Programs for the Fiscal Year ended June 30, 2010 made by Member Erwin, seconded by Member Wohlmuth, and unanimously approved. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES February 22, 2011 H. PARTICIPATION OF THE CITY OF PALM DESERT AND THE PALM DESERT REDEVELOPMENT AGENCY IN THE RIVERSIDE COUNTY TREASURER'S POOL INVESTMENT FUND Member Jeffrey reviewed the staff report and indicated that he had conducted a site visit to meet those most involved with the investment pool. He expressed his satisfaction with the availability of competent staff and advanced technology as well as their overall investment performance. MOTION to recommend to the City Council that: 1) the City and its Redevelopment Agency participate in the Riverside County Treasurer's Pooled Investment Fund; and 2) that the Palm Desert Statement of Investment Policy be amended to allow such investment made by Member Walker, seconded by Member Erwin, and unanimously approved. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE Mr. Gibson informe VIII. INFORMATIONAL ITEMS d A. CONTINUATION OF CONTRACT WITH DIEHL, EVANS & COMPANY LLP TO PERFORM AUDITING SERVICES FOR THE CITY OF PALM DESERT, PALM DESERT REDEVELOPMENT AGENCY, AND THE PALM DESERT RECREATIONAL FACILITIES CORPORATION FOR THE FISCAL YEAR ENDING JUNE 30, 2011 (YEAR 4 OF APPROVED 7 YEAR CONTRACT) Mr. Gibson informed the Committee that staff would recommend that Council continue the contract with Diehl, Evans & Company, LLP, unless there were concerns that should be considered regarding their performance. No concerns were expressed. B. PRESENTATION RELATIVE TO REDEVELOPMENT Ms. Tapia presented a slideshow highlighting Redevelopment's successes and achievements in Palm Desert. Mr. McCarthy provided additional 4 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES February 22. 2011 insight into the State's budget crisis and Ms. Tapia outlined the impact should California redevelopment agencies, and in particular Palm Desert's agency, be eliminated as proposed by Governor Brown. The presentation was received by the Committee. IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:55 a.m. to the next scheduled meeting of March 22, 2011. Niamh Ortega, Recordin ecretary 5