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Home My WebLink AboutMinutes - Audit Invesment and Finance Committee - March 22, 2011♦ MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, March 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 IV. 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 Also Present: CITY COUNCIL ACTION Richard Mogensen, Desert Willow Golf Resortxl'I'ROVEI) 1)F,N;E1) Niamh Ortega, Recording Secretary RECEIVEDg- 0 r 11ER _— Veronica Tapia, RDA Accountant r- Derek White, Desert Willow Golf Resort 1WIEETING DATE ORAL COMMUNICATIONS None. APPROVAL OF MINUTES AYES: ncn S);Gee isi �cn ]NOES: Nance ABSENT: ABSTAIN: &/1, V E R I FI F. D BY: - Original on File with City Cler s Office A. MINUTES OF THE REGULAR MEETING OF FEBRUARY 22 2011 MOTION was made by Member Spiegel and seconded by Member Wohlmuth to adopt and approve in their entirety the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on February 22, 2011, with an amendment to reflect Mayor Benson's attendance. G:TinanceWiamh Ortega\Investment Committee\2011\Minutes 032211.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES March 22 2011 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR FEBRUARY 2011 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended February 28, 2011 was approximately $195.4 million. Interest earnings were approximately $96,000. Yield -to -maturity was approximately 0.56%. The book value of the Redevelopment Agency Portfolio for the period ended February 28, 2011 was approximately $256.7 million. Interest earnings were approximately $142,000. Yield -to -maturity was approximately 0.71 %. MOTION was made by Member Spiegel and seconded by Member Wohlmuth to recommend that the City Council receive and file the City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for February 2011 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT FUND (L.A.I.F.) ACCOUNT STATEMENTS FOR FEBRUARY 2011 MOTION was made by Member Kent seconded by Member Spiegel to receive and file the Local Agency Investment Fund account statements for February 2011 as presented. Motion unanimously approved. C. CALIFORNIA ASSET MANAGEMENT PROGRAM (C.A.M.P.) ACCOUNT STATEMENTS FOR FEBRUARY 2011 MOTION was made by Member Spiegel and seconded by Member Kent to receive and file the California Asset Management Program account statements for February 2011 as presented. Motion unanimously approved. D. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR FEBRUARY 2011 Chairman Gibson presented the City's report. He indicated that sales tax is above projected figures, and TOT has increased compared to last year. Licenses and permits are up, while property tax and interest earnings are down. Expenses are down because the Sheriff billing has not been received, and seems to be falling behind again. 2 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES March 22 2011 MOTION was made by Member Spiegel and seconded by Member Wohlmuth to receive and file the City financial report for February 2011 as presented. Motion unanimously approved. Ms. Tapia reviewed the monthly revenues and expenses for the Redevelopment Agency. Year-to-date revenue for the end of February 2011 was $51.9 million, and expenditures were $58.4 million. MOTION was made by Member Spiegel and seconded by Member Wohlmuth to receive and file the Redevelopment Agency financial report for February 2011 as presented. Motion unanimously approved. E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR FEBRUARY 2011 The Water Resources Control Board tenant improvements will be completed in approximately two weeks, and the vacancy rate is 7.1 %. MOTION was made by Member Spiegel and seconded by Member Kent to receive and file the Parkview Professional Office Buildings financial reports for February 2011 as presented. Motion unanimously approved. F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR FEBRUARY 2011 Revenue was reported at $1.33 million versus a budget of $1.2 million, an increase of 11 %. Staff was able to realize a $20,000 savings as favorable weather allowed them to skip a fertilizer treatment. Retail sales and food and beverage are higher than budget. Overall, February was another good month for the course, and March is also looking good. MOTION was made by Member Wohlmuth and seconded by Member Spiegel to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for February 2011 as presented. Motion unanimously approved. G. RENEWAL OF CORPORATE TRUST AGREEMENT WITH WELLS FARGO BANK Member Jeffrey reviewed the contents of the staff report, and highlighted that he called the entities to verify pricing. Wells Fargo's fees are reasonable and have been guaranteed for the next five years. Mr. Jeffrey summarized that his research has led him to feel very comfortable with continuing the Corporate Trust agreement with Wells Fargo. 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES March 22 2011 MOTION to recommend that the City Council renew the Corporate Trust Agreement with Wells Fargo Bank made by Member Spiegel, seconded by Member Wohlmuth, and unanimously approved. H. AUTHORIZATION OF THE INVESTMENT OF SURPLUS MONIES IN A RABOBANK MONEY MARKET ACCOUNT (This item was added to the agenda by a motion made by Member Wohlmuth, seconded by Member Kent, and unanimously approved.) Member Jeffrey informed the Committee of the opportunity to invest surplus funds in Rabobank, a "AAA" -rated Dutch bank with six branches in the Coachella Valley, including one in Palm Desert. This bank offers a money market account specifically designed for California local agencies, offers a yield of 15 basis points over the LAIF rate, and pays monthly interest versus LAIF's quarterly interest payment. Staff research included contacting various agencies currently using Rabobank, and all provided positive references regarding their usage and experiences. MOTION to recommend that the City Council authorize the investment of surplus monies in a Rabobank money market account made by Member Kent, seconded by Member Woh/muth, and unanimously approved. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE Member Gibson discussed the current situation of Project Area No. 2 bond issuance. Property taxes affect tax increment collection, and currently debt payments equal tax increment, but if tax increment drops any further, it would affect the ability to pay the debt service. There are some improvements being made to the Marriott property in that project area which may trigger an increase in property tax collected, and there are some projects that have not been added to the tax roll yet, which will help raise assessed values and in turn will raise property taxes. An estimate has been received from the Assessor's office for the upcoming year, and a decrease is not anticipated. CI AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES March 22 2011 VIII. INFORMATIONAL ITEMS Member McCarthy updated the Committee on the status of the State's proposal to eliminate all redevelopment agencies. He discussed some options that will be brought forth to the State in a bid to retain funding for redevelopment. 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 April 26, 2011. Niamh Ortega, Recordi Secretary e 5