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HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee July 26, 2011MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, July 26, 2011 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: David Erwin, City Attorney Jean Benson, Mayor Paul Gibson, Finance Director Luis Espinoza, Asst. Finance Director Thomas Jeffrey, Deputy City Treasurer John Wohlmuth, City Manager Patricia Kent, Committee Member Justin McCarthy, ACM/Redevelopment Robert A. Spiegel, Mayor Pro Tempore Susan Marie Weber, Committee Member Also Present: Richard Mogensen, Desert Willow Golf Resort Niamh Ortega, Recording Secretary Derek White, Desert Willow Golf Resort III. ORAL COMMUNICATIONS None. IV. APPROVAL OF MINUTES A. MINUTES OF THE REGULAR MEETING OF JUNE 28, 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 June 28, 2011. Motion unanimously approved. G:TinanceWiamh Ortega\Investment Committee\2011\Minutes 072611.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE JULY 26. 2011 MINUTES V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR JUNE 2011 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended June 30, 2011 was approximately $223.3 million. Interest earnings were approximately $131,000. Yield -to -maturity was approximately 0.72%. The book value of the Redevelopment Agency Portfolio for the period ended June 30, 2011 was approximately $236.9 million. Interest earnings were approximately $122,000. Yield -to -maturity was approximately 0.63%. MOTION was made by Member Erwin and seconded by Member McCarthy to recommend that the City Council receive and We the City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for June 2011 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR JUNE 2011 MOTION was made by Member Erwin seconded by Member Kent to receive and file the Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), Riverside County Investment Pool, and Rabobank Investment Pool statements for June 2011 as presented. Motion unanimously approved. C. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR JUNE 2011 Chairman Gibson presented the City's report. He indicated that sales tax is up 15% for the first quarter, compared to a Southern California average of 6%. He expects that it would flatten by the end of the following quarter. Revenues will be in line with budget, while transfers from reserves will result in a loss of $5.5 million in expenditures. MOTION was made by Member Erwin and seconded by Member McCarthy to receive and file the City of Palm Desert financial reports for June 2011 as presented. Motion unanimously approved. Member McCarthy reported that cumulative revenue is approximately $4 million, and expenditures are $6.5 million. Year-to-date revenue is approximately $112 million, and expenditures are almost $120 million. 0 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JULY 26. 2011 MOTION was made by Member Spiegel and seconded by Member Erwin to receive and file the Redevelopment Agency financial reports for June 2011 as presented. Motion unanimously approved. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR JUNE 2011 The Water Resources Control Board tenant improvements are complete. The Office on Aging is interested in leasing space at the building, and Virginia Waring will be adding additional square footage to their office by adding an additional suite. MOTION was made by Member Spiegel and seconded by Member Erwin to receive and file the Parkview Professional Office Buildings financial reports for June 2011 as presented. Motion unanimously approved. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR JUNE 2011 Mr. White reported that June figures reflected $827,000 over budgeted revenue for the year-to-date, even with a six-month closure of Food & Beverage. The rounds mix was 3,500 over budget and 3,600 over prior year. ADR is down two dollars compared to budget, but is one dollar over prior year, and the net yield is positive. Desert Willow is one of Kemper's top two performing courses in terms of results. Food and Beverage is down 1 % from prior year in dining, and 4% ahead in banquets. MOTION was made by Member McCarthy and seconded by Member Erwin to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for June 2011 as presented. Motion unanimously approved. F. CONSIDERATION OF ADJOURNMENT OF AUGUST MEETING MOTION was made by Member Erwin and seconded by Member Erwin to adjourn the August meeting to the next regular meeting in September 2011. Motion approved; Member Spiegel abstained. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JULY 26, 2011 A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. VIII. INFORMATIONAL ITEMS PACE FINANCING: Mr. McCarthy stated that the City has been a pioneer in the PACE financing for the energy efficiency arena, and while it is being held up on the residential side, there is some activity to come up with a mechanism to use the financing for large-scale commercial properties. One of the leaders is a consortium of Barclay's Bank, Lockheed -Martin and Willdan. Staff has requested and received a proposal from this group to see if the City could integrate their commercial approach into the portfolio of energy efficiency financing that the City offers. Staff is in the process of reviewing it. The program would not present any cost to the City; it would be an exclusive provider that would be available who would use the assessment financing mechanism to place capital with large commercial users to achieve energy efficiency. The interest rate would be adjusted over time as the markets fluctuate, but it would be approximately 7%. The City is interested in working out an agreement to provide a spread for providing this type of storefront support where they would use the City's name. The administration and financing would be provided by the consortium; no City funds or capital would be used. SINGLE AUDIT: Mr. Gibson reported that the audit was submitted in March to the Federal and State government. A letter was received from the State indicating that the audit was reviewed and everything was fine. REDEVELOPMENT PRESENTATION: Member McCarthy presented a PowerPoint presentation relative to AB26 and AB27 regarding the dissolution of redevelopment agencies and creation of successor agencies as outlined by the bills. He highlighted the difficulties that may be encountered in the areas of housing and construction projects, and gave an approximation as to the potential timeline for the operation of Redevelopment as it currently functions, and the fees that would be paid to the State in order to continue operations. Given the attention these two bills have recently received both in the media and at the local, regional and State level, this presentation clarified the City's position to Committee members and provided a summary of how it intends to move forward as the situation continues to change. 4 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES JULY 26. 2011 IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:50 a.m. to the next scheduled meeting of September 27, 2011. Niamh Ortega, cor i g Secretary 5 B MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT, AND FINANCE COMMITTEE Tuesday, July 26, 2011 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. ROLL CALL Present: David Erwin, City Attorney Paul Gibson, Finance Director Thomas Jeffrey, Deputy City Treasurer Patricia Kent, Committee Member Justin McCarthy, ACM/Redevelopment Robert A. Spiegel, Mayor Pro Tempore Susan Marie Weber, Committee Membei Absent Jean Benson, Mayor Luis Espinoza, Asst. Finance Director John Wohlmuth, City Manager CITY COUNCILACTION Also Present: APPROVED s'F NIED Richard Mogensen, Desert Willow Golf Re$IliWEIVED ��.._ __ _ Gr I-HE1l — Niamh Ortega, Recording Secretary — Derek White, Desert Willow Golf Resort MEETING DATE ORAL COMMUNICATIONS None. APPROVAL OF MINUTES AYES: /ec�� ✓ -- NOES: N-Cy1c- ABSENT: NC)/IC- ABSTAIN: LM VERIFIED BY: Original on File with City Clerk's' ff►ce A. MINUTES OF THE REGULAR MEETING OF JUNE 28, 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 June 28, 2011. Motion unanimously approved. G:TinanceWiamh Ortega\Investment Committee\2011\Minutes 072611.docx