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HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee January 25, 2011MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, January 25, 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 IV. Present-. Paul Gibson, Finance Director Luis Espinoza, Asst. Finance Director Thomas Jeffrey, Deputy City Treasurer Jean Benson, Mayor Robert A. Spiegel, Mayor Pro Tempore John Wohlmuth, City Manager David Erwin, City Attorney Justin McCarthy, ACM/Redevelopment Jono Hildner, Committee Member James Walker, Committee Member Everett Wood, Committee Member Absent: Patricia Kent, Committee Member CITY COUNCILACTION APPROVED DYNIFI) RECEIVED F m iII,,R. MEETING DATE AYES: r 11 NOES: ' --_-- ABSENT: .Kml) e ABSTAIN: VERIFIED BY: Also Present: Original on File with City Clerk's Rice Richard Mogensen, Desert Willow Golf Resort Niamh Ortega, Recording Secretary Nitin Patel, Diehl, Evans & Company, LLP Veronica Tapia, RDA Accountant Derek White, Desert Willow Golf Resort ORAL COMMUNICATIONS None. APPROVAL OF MINUTES A. MINUTES OF THE REGULAR MEETING OF DECEMBER 21, 2010 MOTION was made by Member Spiegel and seconded by Member Wood to adopt and approve in their entirety the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on December 21, 2010. G:Tinanceftamh Ortega\Investment Committee\2010\Minutes 012511.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES January 25, 2011 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR DECEMBER 2010 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended December 31, 2010 was approximately $186.9 million. Interest earnings were approximately $130,000. Yield -to -maturity was approximately 0.72%. The book value of the Redevelopment Agency Portfolio for the period ended December 31, 2010 was approximately $230.5 million. Interest earnings were approximately $116,000. Yield -to -maturity was approximately 0.60%. 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 Schedules and Summary of Cash Reports for December 2010 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.) ACCOUNT STATEMENTS FOR DECEMBER 2010 MOTION was made by Member Wood and seconded by Member Spiegel to receive and file the Local Agency Investment Fund account statements for December 2010 as presented. Motion unanimously approved. C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR DECEMBER 2010 MOTION was made by Member Hildner and seconded by Member Wood to receive and file the California Asset Management Program account statements for December 2010 as presented. Motion unanimously approved. D. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR DECEMBER 2010 Chairman Gibson presented the City's report. He indicated that TOT was similar to last year's figures, and the sales tax for the 3Id quarter was up 5.1 % over the prior year. Property tax is down due to lower assessed values, and interest earnings are also down. 0 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES January 25. 2011 MOTION was made by Member Hildner and seconded by Member Wood to receive and file the City financial reports for December 2010 as presented. Motion unanimously approved. Ms. Tapia reviewed the monthly revenues and expenses for the Redevelopment Agency. Year-to-date for the end of December 2010 increased by $2.78 million in revenue and $2.5 million in expenditures. MOTION was made by Member Hildner and seconded by Member Wood to receive and file the Redevelopment Agency financial reports for December 2010 as presented. Motion unanimously approved. Mr. Gibson informed the Committee that the City had received notice from the State that Palm Desert would be one of eighteen California redevelopment agencies to be audited, and he expected it would be conducted in mid -February. Mr. McCarthy added that staff was currently working to inform the public of the importance of redevelopment agencies in light of Governor Brown's announcement that he would like to eliminate redevelopment agencies as part of his solution to closing the State's budget deficit. E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR DECEMBER 2010 Mr. Gibson reviewed the monthly report and stated that the tenant improvements for the Water Resources building would begin during the upcoming weekend. MOTION was made by Member Walker and seconded by Member Wood to receive and file the Parkview Professional Office Buildings financial reports for December 2010 as presented. Motion unanimously approved. F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR DECEMBER 2010 Mr. Mogensen reported that the clubhouse had a grand re -opening on January 14, 2011. There was a good business mix, and the event was a success. December revenues were $487,000 versus a budget of $470,000, a 4% increase over budget. Labor was up $4,000 and expenses were $40,000 under budget. Currently, the facility is ahead of pace for the year by $203,000. Overall, resident play was down last month, partly due to eight days of rain and an increase in other categories. Cook's Grill is always open, but it is expected that the volume will also decrease due to the re -opening of the kitchen. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES January 25, 2011 MOTION was made by Member Walker and seconded by Member Spiegel to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for December 2010 as presented. Motion unanimously approved. G. PRESENTATION OF THE CITY OF PALM DESERT AUDITED FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 (Nitin Patel, Diehl, Evans & Company, LLP) Chairman Gibson introduced Mr. Nitin Patel, CPA, of Diehl, Evans & Company, LLP. Mr. Patel gave a brief overview of the audit process including the timing and scope of the audit, the various reports prepared for the City and its entities, and the independent auditor's report and opinion. As part of his presentation, he informed the Committee of the guidelines his company is required to follow and stated that there were no difficulties or disagreements with management during the process. Mr. Patel reported that his company issued an unqualified opinion as stated in their letter dated November 29, 2010. Supplemental information was fairly stated, and during various tests it was determined that the City was in compliance with its various policies, including its investment and purchasing policies. MOTION to recommend that the City Council receive and file the City of Palm Desert audited financial reports for the Fiscal Year ended June 30, 2010 made by Member Hildner, seconded by Member Wood, and unanimously approved. H. PRESENTATION OF THE PALM DESERT REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 (Nitin Patel, Diehl, Evans & Company, LLP) See discussion under Item V, G. MOTION to recommend that the City Council receive and file the Palm Desert Redevelopment Agency audited financial reports for the Fiscal Year ended June 30, 2010 made by Member Walker, seconded by Member Spiegel, and unanimously approved. PRESENTATION OF THE PALM DESERT RECREATIONAL FACILITIES CORPORATION FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2010 (Nitin Patel, Diehl, Evans & Company, LLP) See discussion under Item V, G. MOTION to recommend that the City Council receive and file the Palm Desert Recreational Facilities Corporation audited financial reports for the Fiscal Year ended June 30, 2010 made by Member Hildner, seconded by Member Walker, and unanimously approved. n AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES January 25. 2011 VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. VIII. INFORMATIONAL ITEMS None. 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 February 22, 2011. r� Niamh Ortega, Recor g Secretary 5