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HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee 02/28/2012MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, February 28, 2012 — 10:00 a.m. CALL TO ORDER Chairman Gibson called the meeting to order at 10:00 a.m. ROLL CALL Present: Paul Gibson, Finance Director Luis Espinoza, Asst. Finance Director Thomas Jeffrey, Deputy City Treasurer Robert A. Spiegel, Mayor John Wohlmuth, City Manager Justin McCarthy, ACM/Redevelopment David Erwin, City Attorney Absent: William Kroonen, Mayor Pro-Tempore Susan Marie Weber, Committee Member CITY COUNCIL ACTION APPROVED Ron Crisp, Committee Member -- -- Patricia Kent, Committee Member MEETING DATE AYES: NOES: M 0 01- Also Present:--- Al Colombo, Desert Willow Golf Resort ABSENT: _�`irr:� ��n ,� ABSTAIN: 00L_ Anthony Hernandez, Senior Financial Ana tIFIED BY.--- Richard Mogensen, Desert Willow Golf Rlgonal on File with City Clerk's )l'tice Niamh Ortega, Recording Secretary Derek White, Desert Willow Golf Resort III. ORAL COMMUNICATIONS None. IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF NOVEMBER 22, 2011 Mr. Jeffrey requested that the sentence in Section V, B be revised to read, "Mr. Jeffrey stated that the 2012 Issuer Lists were revised." No other changes were requested. MOTION was made by Member Spiegel and seconded by Member Erwin to adopt and approve in their entirety the amended Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on November 22, 2011. INVESTMENT & FINANCE COMMITTEE MINUTES FEBRUARY 28, 2012 V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR JANUARY 2012 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended January 31, 2012 was approximately $230.4 million. Interest earnings were approximately $68,000. Yield -to -maturity was approximately 0.4%. The book value of the Redevelopment Agency Portfolio for the period ended January 31, 2012 was approximately $185.9 million. Interest earnings were approximately $81,000. Yield -to -maturity was approximately 0.27%. MOTION was made by Member Erwin 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 January 2012 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR JANUARY 2012 MOTION was made by Member Erwin 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 January 2012. Motion unanimously approved. C. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR JANUARY 2012 Member Gibson reported that sales tax was up 10% for the third quarter, but TOT for January, February and March are likely to be lower than last year for the same period. It appears that expenditures are under budget, but this is due to a timing issue of when payments are made relative to the street resurfacing project. Cumulative revenue for the Redevelopment Agency was $49.5 million, and expenditures were 27.8 million. Year-to-date revenue is 51.7 million and expenditures are $52.5 million. This is the final report for the agency since it was dissolved as of February 1, 2012. Reports for the successor agency will not be brought to this Committee; rather, the newly -created oversight committee will receive all future reports. 2 INVESTMENT & FINANCE COMMITTEE MINUTES FEBRUARY 28, 2012 MOTION was made by Member Wohlmuth and seconded by Member Erwin to receive and file the City and Redevelopment Agency financial reports for January 2012 as presented. Motion unanimously approved. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR JANUARY 2012 Mr. Hernandez provided an overview of the report. He reported that there are 5 vacancies, which is equal to a 15% vacancy rate. MOTION was made by Member Spiegel and seconded by Member Erwin to receive and We the Parkview Professional Office Buildings financial reports for January 2012 as presented. Motion unanimously approved. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR JANUARY 2012 Mr. Mogensen reported that January was a changing month with a decrease in overall participation and $122,000 under budget. He expects that February will make up for the shortfall, as it is currently 10% over last year. He expects that he will be ahead of budget by the end of February, and March looks positive also. With respect to the rounds mix, wholesale rounds are down 400 rounds and public play is down 10% from last year. On the restaurant side, food and beverage was slow last month, although year-to-date dining covers are 10,000 over last year. February will be better than last year, and catering continues to improve. MOTION was made by Member Spiegel and seconded by Member Wohlmuth to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for January 2012 as presented. Motion unanimously approved. F. ADOPTION OF AMENDMENTS TO PALM DESERT "STATEMENT OF INVESTMENT POLICY" Mr. Jeffrey discussed how the dissolution of the Palm Desert Redevelopment Agency had changed how investment concentrations are calculated. The elimination of the RDA could cause concentration levels to rise. It was suggested that the concentration limit for local agency investment pools be raised from 30% to 50%. MOTION made by Member Spiegel and seconded by Member Erwin to recommend that the City Council adopt the amendments to the Palm Desert "Statement of Investment Policy" as presented, with the modification of the concentration limit for local agency investment pools from 30% to 50%. Motion unanimously passed. 3 INVESTMENT & FINANCE COMMITTEE MINUTES FEBRUARY 28, 2012 G. ADOPTION OF RESOLUTION OF THE RDA SUCCESSOR AGENCY — PALM DESERT AUTHORIZING INVESTMENT OF MONIES IN LOCAL AGENCY INVESTMENT FUND (LAIF) MOTION made by Member Spiegel and seconded by Member Wohlmuth to recommend that the City Council adopt the resolution of the RDA Successor Agency — Palm Desert authorizing investment of monies in LAIF. Motion unanimously passed. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. VIII, INFORMATIONAL ITEMS None. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:41 a.m. to the next scheduled .meeting of March 27, 2012. Niamh Ortega, Recordi71ecretary M