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Home My WebLink AboutMinutes - Audit Investment and Finance Committee 01/24/2012MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, January 24, 2012 — 10:00 a.m. CALL TO ORDER Chairman Gibson called the meeting to order at 10:02 a.m. ROLL CALL Present: Absent: Paul Gibson, Finance Director David Erwin, City Attorney Luis Espinoza, Asst. Finance Director Patricia Kent, Committee Member Thomas Jeffrey, Deputy City Treasurer Robert A. Spiegel, Mayor William Kroonen, Mayor Pro-Tempore John Wohlmuth, City Manager Justin McCarthy, ACM/Redevelopment Susan Marie Weber, Committee Member CITY COUNCIL ACTION APPROVED DENIED RECEIVED % iv i /F O"I fl['R 1r�If�.E"['INCH DATE Also Present: AYES: LLISL/3 Al Colombo, Desert Willow Golf Resort NOES: �0/1 Anthony Hernandez, Senior Financial Analy§�,I,, NT: rc,Q(1ef7 Richard Mogensen, Desert Willow Golf Rek -rAly: \jop, C Niamh Ortega, Recording Secretary VERIFIED BV:_ Nitin Patel, White Nelson Diehl Evans, LLIbriginal on File with City Clerk's Office Derek White, Desert Willow Golf Resort III. ORAL COMMUNICATIONS Chairman Gibson reminded members that in accordance with AB 1234, Liebert Cassidy Whitmore in association with the Coachella Valley Employment Relations Consortium will offer its course, Ethics in Public Service, to Council and Committee members as well as select employees at La Quinta City Hall on February 15, 2012. The information included in the agenda packet provides detailed information on how to register for the training. IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF NOVEMBER 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 November 22, 2011. INVESTMENT & FINANCE COMMITTEE MINUTES JANUARY 24, 2012 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR NOVEMBER AND DECEMBER 2011 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended November 30, 2011 was approximately $192.6 million. Interest earnings were approximately $68,000. Yield -to -maturity was approximately 0.44%. The book value of the Redevelopment Agency Portfolio for the period ended November 30, 2011 was approximately $212.7 million. Interest earnings were approximately $95,000. Yield -to -maturity was approximately 0.53%. The book value of the City Portfolio for the period ended December 31, 2011 was approximately $207 million. Interest earnings were approximately $64,000. Yield -to -maturity was approximately 0.37%. The book value of the Redevelopment Agency Portfolio for the period ended December 31, 2011 was approximately $193.6 million. Interest earnings were approximately $88,000. Yield -to -maturity was approximately 0.53%. Mr. Jeffrey reported that the Rabobank accounts are now closed. Mr. Wohlmuth commended staff on making the recommendation to end the City's relationship with Rabobank at the right time. MOTION was made by Member Spiegel and seconded by Member Wohlmuth to recommend that the City Council receive and We the City and Redevelopment Agency Investment Schedules and Summary of Cash Reports for November and December 2011 as presented. Motion unanimously approved. B. APPROVAL OF 2012 ISSUER LISTS FOR COMMERCIAL PAPER AND MEDIUM -TERM NOTES Mr. Jeffrey stated that the 2012 Issuer Lists were revised to reflect the best yields. MOTION was made by Member Spiegel and seconded by Member Wohlmuth to recommend that the 2012 Issuer Lists for Commercial Paper and Medium -term Notes be approved as presented. Motion unanimously approved. 2 INVESTMENT & FINANCE COMMITTEE MINUTES JANUARY 24, 2012 C. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR NOVEMBER AND DECEMBER 2011 MOTION was made by Member Spiegel and seconded by Member Wohlmuth to receive and file the reports for Local Agency Investment Fund (LAIF), California Asset Management Program (CAMP), Riverside County Investment Pool, and Rabobank Investment Pool for November and December 2011. Motion unanimously approved. D. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR NOVEMBER AND DECEMBER 2011 Member Gibson reported that sales tax was up 10% for the third quarter, and that licenses and permits also exceeded budget. Property tax continues to remain below budget, and overall revenues remain in line with prior year to date. Expenses reflect timing issues with regard to budget and actual expenses for sheriff billing and Public Works resurfacing work. There will be adjustments made to expenditures in the near future as the City continues to work on issues with the successor agency for the Redevelopment Agency. A Redevelopment Agency report will be provided at the next meeting, which will be the final one for the agency since it will be dissolved as of February 1, 2012. MOTION was made by Member Spiegel and seconded by Member Wohlmuth to receive and file the City financial reports for November and December 2011 as presented. Motion unanimously approved. E. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR NOVEMBER AND DECEMBER 2011 Mr. Hernandez provided an overview of the report. Tenant improvements for Suite 210 were approved by Council for the relocation of John Benoit's office. MOTION was made by Member Spiegel and seconded by Member Wohlmuth to receive and file the Parkview Professional Office Buildings financial reports for November and December 2011 as presented. Motion unanimously approved. F. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR NOVEMBER AND DECEMBER 2011 Mr. White introduced Al Colombo as the new Desert Willow Controller. He will attend future Investment Committee meetings. Mr. White reported that December showed actual revenues of $543,000 versus a budget of $572,000 which was 5% under budget, but 11 % over prior year. Labor was $396,000 versus a budget of $401,000, and expenses were $265,000 versus a budget of $316,000. 3 INVESTMENT & FINANCE COMMITTEE MINUTES JANUARY 24, 2012 Mr. Mogensen reported that for January, wholesale golf is down 10-15% over last year, and the numbers do not look good for the month. Customer loyalty has increased, but revenue has decreased from wholesalers such as Stand-by Golf and Intrawest. He is optimistic for February and March. MOTION was made by Member Wohlmuth and seconded by Member McCarthy to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for November and December 2011 as presented. Motion unanimously approved. G. PRESENTATION OF THE CITY OF PALM DESERT AUDITED FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 (White Nelson Diehl Evans LLP) Mr. Nitin Patel introduced himself to the Committee and provided an overview of the audit completed by his firm. He outlined the audit procedures followed for the City, Redevelopment Agency and Palm Desert Recreational Facilities Corporation, and provided a summary of the reports. The firm issued an unqualified (clean) opinion for all entities audited. He also indicated that there is some concern relative to the uncertainty for the upcoming year in light of the loss of the Redevelopment Agency. MOTION made by Member Weber and seconded by Member McCarthy to recommend that the City Council receive and file the City of Palm Desert audited financial reports for the fiscal year ended June 30, 2011. Motion unanimously passed. H. PRESENTATION OF THE PALM DESERT REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2011 (White Nelson Diehl Evans LLP) See discussion under Section V, New Business, Item G. MOTION made by Member Spiegel and seconded by Member McCarthy to recommend that the City Council receive and file the Palm Desert Redevelopment Agency financial reports for the fiscal year ended June 30, 2011. Motion unanimously passed. PRESENTATION OF THE PALM DESERT RECREATIONAL FACILITIES CORPORATION FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30 2011 (White Nelson Diehl Evans LLP) See discussion under Section V, New Business, Item G. MOTION made by Member Wohlmuth and seconded by Member Weber to recommend that the City Council receive and file the Palm Desert Recreational Facilities Corporation financial reports for the fiscal year ended June 30, 2011. Motion unanimously passed. 0 INVESTMENT & FINANCE COMMITTEE MINUTES JANUARY 24, 2012 J. LIMITED PROCEDURES REVIEW OF VARIOUS PALM DESERT OPERATORS FOR COMPLIANCE WITH THE CITY OF PALM DESERT'S TRANSIENT OCCUPANCY TAX ORDINANCE FOR THE 2009 AND 2010 CALENDAR YEAR (White Nelson Diehl Evans LLP) Mr. Patel reported that several operators were reviewed during the audit, and all underpayments have been collected. Overpayment will be returned to one operator upon Council review. MOTION made by Member Wohlmuth and seconded by Member Weber that the City Council receive and file the Limited Procedures Review of various Palm Desert operators for compliance with the City of Palm Desert's Transient Occupancy Tax Ordinance for the 2009 and 2010 calendar years. Motion unanimously approved. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. Vill. INFORMATIONAL ITEMS None. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:52 a.m. to the next scheduled meeting of February 28, 2012. Niamh Ortega, Recording S tretary 5