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HomeMy WebLinkAboutMinutes - Audit Investment Finance Committee 10/25/2011NIVA AMI. T MINUTES REGULAR MEETING OF THE PALM DESERT x AUDIT, INVESTMENT, AND FINANCE COMMITTEE _. Tuesday, October 25, 2011 I. CALL TO ORDER Chairman Gibson called to order a regular meeting of the Palm Desert Audit, Investment and Finance Committee at 10:05 a.m. II. ROLL CALL Present: Absent: Luis Espinoza, Asst. Finance Director Paul Gibson, Finance Director Bob Hargreaves, City Attorney Thomas Jeffrey, Deputy City Treasurer Patricia Kent, Committee Member William Kroonen, Council Member Justin McCarthy, ACM/Redevelopment Robert A. Spiegel, Mayor Pro Tempore Susan Marie Weber, Committee Member John Wohlmuth, City Manager CITY COUNCIL ACTION Also Present: APPROVED DENIED Anthony Hernandez, Sr. Financial Analyst RECEIVED FT 0,111ER Richard Mogensen, Desert Willow Golf Resort Niamh Ortega, Recording Secretary MEETING - DATF. -�-CIS Ed Pack, Palm Desert resident _ AYES: ��Fin�r+� Veronica Tapia, Redevelopment Accountant NOES: NCrte. Derek White, Desert Willow Golf Resort ABSENT: i�r1r ABSTAIN: NDn ---___ --_. VERIFIED BY: -_.___._____ III. ORAL COMMUNICATIONS Original on File wit�C�yL�Cjer,�,s None. IV. APPROVAL OF MINUTES A. MINUTES OF THE REGULAR MEETING OF SEPTEMBER 27, 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 September 27, 2011. Motion unanimously approved. G:TinanceWiamh Ortega\Investment Committee\2011\Minutes 102511.docx AUDIT, INVESTMENT, AND FINANCE COMMITTEE OCTOBER 25 2011 MINUTES V. NEW BUSINESS A. CITY AND REDEVELOPMENT AGENCY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR SEPTEMBER 2011 Mr. Espinoza presented the report. He stated that funds had been transferred from Rabobank to LAIF and CAMP as agreed at the previous meeting. Mr. McCarthy stated that following the Committee's decision, an article in the Financial Times reported that there was discussion at the EU at the ministerial level of constraining the rating agencies from posting the ratings on sovereign debt. He went on to note that there is not as much transparency as desired in Europe. While Rabobank is extremely conservative and well -capitalized, there is so much high leverage in the banking industry in Europe, that taking a cautious approach is a wise course of action. MOTION was made by Member Spiegel and seconded by Member Wohlmuth that the Council receive and file the report as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR SEPTEMBER 2011 MOTION was made by Member Spiegel seconded by Member Wohlmuth 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 September 2011 as presented. Motion unanimously approved. C. CITY FINANCIAL REPORTS AND REDEVELOPMENT AGENCY FINANCIAL REPORTS FOR SEPTEMBER 2011 Mr. Espinoza presented the City's report. He explained how the original budget is changed during the year by appropriations approved by Council. Member Wohlmuth elaborated and provided additional detail on specific projects. Ms. Tapia presented the RDA's report. Year to date revenues were $957,000, primarily from rental income, and expenditures were $20 million, the majority of which were debt service payments. Member Wohlmuth discussed several projects that were funded from sources other than the general fund, explaining why they are not included in the City's general fund financial report. MOTION was made by Member Spiegel and seconded by Member Kent to receive and file the City and Redevelopment Agency financial reports for September 2011 as presented. Motion unanimously approved. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR SEPTEMBER 2011 Mr. Hernandez reported that the year-to-date actual revenue is $248,000 versus a budget of $252,000. The majority is the result of interest being lower than N AUDIT, INVESTMENT, AND FINANCE COMMITTEE OCTOBER 25 2011 MINUTES expected, and rent was also less than anticipated due to a rent reduction in order to extend a lease for an additional five years. Currently there is a 17% vacancy rate at the two -storey building; the single -storey building is 100% occupied, resulting in an overall vacancy rate of 10%. There is no interest in the available space, and advertising continues in an effort to attract tenants. MOTION was made by Member Wohlmuth and seconded by Member Spiegel to receive and file the Parkview Professional Office Buildings financial reports for September 2011 as presented. Motion unanimously approved. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR SEPTEMBER 2011 Mr. Mogensen reported that things are going well and the course just concluded a very successful month and quarter. This is typically the toughest quarter of the year to achieve budget, and overall the course has done well. Mr. White reported that revenues came in ahead of budget by over 13% and ahead of prior year by 41 %. Merchandise sales were up 55% over prior year, and pro shop revenue was up 64%. Member Spiegel asked about the connector that would be built to the Westin property. Mr. Mogensen indicated that they are receiving a large amount of business from Westin, with 348 rounds attributed to them last month, and 216 attributed to Intrawest (IROC). Approximately 10% of the rounds are from timeshare properties. Mountainview has been closed for overseeding, and is scheduled to reopen this Friday. Firecliff will then be taken offline, reopening after Christmas. Mr. White highlighted operating expenses and income, resulting in being $85,000 ahead of budget for the month of September, and $225,000 ahead of budget for the quarter. Group business has been very positive for September, and catering also did well. Overall, the resort has been very successful at maintaining market share in a difficult economy. 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 September 2011 as presented. Motion unanimously approved. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS 3 AUDIT, INVESTMENT, AND FINANCE COMMITTEE MINUTES OCTOBER 25 2011 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 10:28 a.m. to the next scheduled meeting of November 22, 2011. i Niamh Ortega, Record Secretary Il