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HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee - April 24, 2012MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, April 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 F"Hb*&qTFhW Member Luis Espinoza, Asst. Finance Director APPROVED DENIED Thomas Jeffrey, Deputy City Treasurer RECEIVED a-- E leW OTHER William Kroonen, Mayor Pro-Tempore Robert A. Spiegel, Mayor MEETING DATU. John Wohlmuth, City Manager AYES: David Erwin, City Attorney NOES: L O/ - — Justin McCarthy, ACM/Redevelopment ABSENT: AI bile ---- Russell Campbell, Community Member ABSTAIN: 1� d1?C — -- Ron Crisp, Committee Member VERIFIED BY: k,3K Ira -- Susan Marie Weber, Committee MemberOriginal on File with City Crerk' o� lfice Also Present: Al Colombo, Desert Willow Golf Resort Anthony Hernandez, Senior Financial Analyst 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 MEETING OF MARCH 27, 2012 MOTION was made by Member Spiegel and seconded by Member Wohlmuth to adopt and approve as amended the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on March 27, 2012. Minutes were amended to reflect the presence of Member Campbell. Motion unanimously approved. INVESTMENT & FINANCE COMMITTEE MINUTES APRIL 24, 2012 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR MARCH 2O12 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended March 31, 2012 was approximately $210.6 million. Interest earnings were approximately $74,000. Yield -to -maturity was approximately 0.45%. It was noted that uncertainty continues with regard to interest rates, and that uncertainty is based in part on current and future events taking place in the European market. MOTION was made by Member Spiegel and seconded by Member Wohlmuth to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Report for March 2012 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR MARCH 2012 MOTION was made by Member Kroonen and seconded by Member Campbell 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 March 2012. Motion unanimously approved. C. CITY FINANCIAL REPORT FOR MARCH 2O12 Mr. Gibson reported that fourth quarter sales tax has increased 8.5%. Actual revenues are $21.8 million versus a prior year of $21.2 million, and expenditures are $26.6 million versus prior year of $27.9 million. MOTION was made by Member Weber and seconded by Member Erwin to receive and file the City financial reports for March 2012 as presented. Motion unanimously approved. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR MARCH 2O12 Mr. Hernandez provided an overview of the report. He reported that there is a 16% vacancy rate, which is better than the regional market. As a follow-up to last month's meeting he provided an overview of the System Energy Output relative to the Parkview building's solar panels, and indicated that he would have an estimate on savings realized once the panels had been operational for 12 months. MOTION was made by Member Wohlmuth and seconded by Member Erwin to receive and file the Parkview Professional Office Buildings K INVESTMENT & FINANCE COMMITTEE MINUTES APRIL 24, 2012 financial reports for March 2012 as presented. Motion unanimously approved. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR MARCH 2O12 Mr. Mogensen and Mr. White provided an overview of the reports in the agenda packet, and indicated that while the course achieved budget, business continues to be slower than anticipated. There was some discussion relative to the recent action taken by the City of La Quinta to raise the cost of their resident cards, and subsequent discussion as to how the City of Palm Desert subsidizes its course with discounted play for residents. It was noted that the City of La Quinta uses the cost of its resident cards to subsidize the course, while Palm Desert charges a nominal fee of $10 to cover the cost of processing the card. MOTION was made by Member Campbell and seconded by Member Erwin to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for March 2012 as presented. Motion unanimously approved. F. INDEPENDENT ACCOUNTANTS' REPORT ON AGREED -UPON PROCEDURES PERFORMED ON THE MEASURE A TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED JUNE 30, 2011 The audit was reviewed. There was discussion regarding uses of Measure A funds within the City and the types of projects that have been and will be funded. MOTION made by Member Weber and seconded by Member Campbell to recommend that the City Council receive and file the Independent Accountants' Report on agreed -upon procedures performed on the Measure A Transportation Fund for the fiscal year ended June 30, 2011. Motion unanimously passed. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE Mr. McCarthy reported that staff is still looking at the feasibility of a commercial PACE program. Vill. INFORMATIONAL ITEMS None. 9 INVESTMENT & FINANCE COMMITTEE MINUTES APRIL 24, 2012 IX. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:40 a.m. to the next scheduled meeting of May 22, 2012. Niamh Ortega, Recording Secr ry El