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HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee October 26, 2010�T MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, October 26, 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 IV. Present: Absent: Paul Gibson, Finance Director Cindy Finerty, Mayor Luis Espinoza, Asst. Finance Director Patricia Kent, Committee Member Thomas Jeffrey, Deputy City Treasurer CITY COUNCIL ACTION Robert A. Spiegel, Council Member APPROVED DENIED John Wohlmuth, City Manager RECEIVED_►' OTHER Justin McCarthy, ACM/Redevelopment Robert Hargreaves, City Attorney MEETING DATE Jono Hildner, Committee Member AYES: ir1Pr4i4, ., � arn�r�n , -,e4el, 8ens;n James Walker, Committee Member NOES: K LOC —_ Everett Wood, Committee Member ABSENT: tv We _ ABSTAIN: [,i NP Also Present: VERIFIED BY: Anthony Hernandez, Senior Financial AnMy4oinal on File with City Clerk Office Richard Mogensen, Desert Willow Golf Resort Tom Mortensen, Public Attendee Niamh Ortega, Recording Secretary Veronica Tapia, RDA Accountant ORAL COMMUNICATIONS None. APPROVAL OF MINUTES A. MINUTES OF THE REGULAR MEETING OF SEPTEMBER 28 2010 MOTION was made by Member Erwin and seconded by Member Hildner to adopt and approve in their entirety the Minutes, as amended, of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on September 28, 2010. G:Tinanceftamh Ortega\Investment Committee\2010\Minutes 102610.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES October 26, 2010 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR SEPTEMBER 2010 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended September 30, 2010 was approximately $195.7 million. Interest earnings were approximately $155,000. Yield -to -maturity was approximately 0.96%. The book value of the Redevelopment Agency Portfolio for the period ended September 30, 2010 was approximately $257.1 million. Interest earnings were approximately $166,000. Yield -to -maturity was approximately 0.59%. MOTION was made by Member Walker and seconded by Member Spiegel to recommend that the City Council receive and file the City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for September 2010 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.) ACCOUNT STATEMENTS FOR SEPTEMBER 2010 MOTION was made by Member Spiegel and seconded by Member Walker to receive and file the Local Agency Investment Fund account statements for September 2010 as presented. Motion unanimously approved. C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR SEPTEMBER 2010 MOTION was made by Member Hildner and seconded by Member Wood to receive and file the California Asset Management Program account statements for September 2010 as presented. Motion unanimously approved. D. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR SEPTEMBER 2010 Chairman Gibson reported that Transient Occupancy Tax revenue is improving due to increased convention bookings, and sales tax revenue is looking promising with the June quarter up 13.1%. Expenses are higher than budgeted due to public safety bills being submitted on time, Outside Agency funds disbursed at the beginning of the fiscal year, and street resurfacing also in progress. 2 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES __ October 26, 2010 Ms. Tapia reviewed the monthly revenues and expenses for the Redevelopment Agency. Year-to-date for the end of September 2010 was $1.2 million in revenue and $21.4 million in expenditures. MOTION was made by Member Spiegel and seconded by Member Wohlmuth to receive and file the City and Redevelopment Agency financial reports for September 2010 as presented. Motion unanimously approved. E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR SEPTEMBER 2010 Mr. Hernandez reported that revenues exceed budget by $11,000, and expenditures exceeded budget by $15,000. One tenant will be vacating in October, and another in December, resulting in a total of four vacancies. Tenant improvements are currently in progress for the Water Resources building. The City covers the expenses upfront, and the State will reimburse 100% of the cost. The rooftop reflective seal is being reapplied, and the rooftop solar panel project is currently out to bid. MOTION was made by Member Walker and seconded by Member Wood to receive and file the Parkview Professional Office Buildings financial reports for September 2010 as presented. Motion unanimously approved. F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR SEPTEMBER 2010 Mr. Mogensen reported that the Desert Willow renovation would be complete by the end of January 2011. The terrace is behind schedule by two to three weeks, and the kitchen is on schedule. In September, the cost of goods sold was high, and merchandise sales were low. Payroll was down $15,000, but $35,000 better than last year. Rack rate earned was down, and resident play was down in September by 270 rounds. Outings were double the budgeted amount, and the Westin timeshare resort has been supplying a lot of business to Desert Willow. MOTION was made by Member Walker and seconded by Member Wood to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for September 2010 as presented. Motion unanimously approved. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES October 26, 2010 VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. VIII. INFORMATIONAL ITEMS Mr. Gibson pointed out that the December meeting will fall on the Tuesday between Christmas and New Year's holidays. To ensure a quorum, it was suggested to move the meeting to the week before. The November meeting will take place as scheduled, and a special meeting will be held on Tuesday, December 21, 2010 at 10:00 a.m. in place of the regular December 28 meeting. IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:30 a.m. to the next regular meeting of November 23, 2010. _.r Niamh Ortega, Rec rding Secretary 4