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HomeMy WebLinkAboutMinutes - Audit Investment and Finance Committee 03/27/2012MINUTES REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, March 27, 2012 — 10:00 a.m. CALL TO ORDER Chairman Gibson called the meeting to order at 10:04 a.m. ROLL CALL Present: Absent: Paul Gibson, Finance Director David Erwin, City Attorney Luis Espinoza, Asst. Finance Director Thomas Jeffrey, Deputy City Treasurer William Kroonen, Mayor Pro-Tempore CITY COUNCIL ACTION Robert A. Spiegel, Mayor APPROVED DENIED RECEIVED F+gyp OTHER John Wohlmuth, City Manager Justin McCarthy, ACM/Redevelopment Russell Campbell, Community Member _ MEETING DATE AYES: n,rtr)6r+y. s)I Ron Crisp, Committee Member _L%KK NOES: Nc(1e Patricia Kent, Committee Member One - Susan Marie Weber, Committee MembeABSENT:.Lyy.._, ABSTAIN: Present: Present: VERIFIED BY: kn< 11-111fAlso Al Colombo, Desert Willow Golf Resort Original on File with City Clerk's O ,ce 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 FEBRUARY 28. 2012 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 February 28, 2012. INVESTMENT & FINANCE COMMITTEE MINUTES MARCH 27, 2012 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULES AND SUMMARY OF CASH REPORTS FOR FEBRUARY 2012 Member Jeffrey presented the report and highlighted the following points: The book value of the City Portfolio for the period ended February 29, 2012 was approximately $212.5 million. Interest earnings were approximately $68,000. Yield -to -maturity was approximately 0.41 %. MOTION was made by Member Campbell and seconded by Member Wohlmuth to recommend that the City Council receive and file the City Investment Schedules and Summary of Cash Reports for February 2012 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR FEBRUARY 2012 MOTION was made by Member Spiegel and seconded by Member Kroonen 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 February 2012. Motion unanimously approved. C. CITY FINANCIAL REPORTS FOR FEBRUARY 2012 Mr. Gibson reported that TOT is up over last year; all other renevues should be in line with budget for the end of the year. Sheriff's expenses are expected to be lower than budget. MOTION was made by Member Wohlmuth and seconded by Member Spiegel to receive and file the City financial reports for February 2012 as presented. Motion unanimously approved. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORTS FOR FEBRUARY 2012 Mr. Hernandez provided an overview of the report. He reported that there is a 15% vacancy rate, which is better than the regional market. Rates vary from $1.25/sq. ft. to $1.50/sq. ft. depending on the organization and lease terms. MOTION was made by Member Campbell and seconded by Member Wohlmuth to receive and file the Parkview Professional Office Buildings financial reports for February 2012 as presented. Motion unanimously approved. 2 INVESTMENT & FINANCE COMMITTEE MINUTES MARCH 27, 2012 E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR FEBRUARY 2012 Mr. Mogensen reported that February numbers turned out better than January. One of the things working against this area is that the weather is good in other parts of the country, meaning less people travelling to the area. Cost of goods sold is better than prior year, and labor is about 13% over budget, but only 1 % over prior year. Expenditures are $258,000 versus a budget of $292,000. This is mostly a timing issue. Year to date overall budget is a negative amount of $208,000 versus a negative of $500,000. MOTION was made by Member Spiegel and seconded by Member Wohlmuth to receive and We the Palm Desert Golf Course Facilities Corporation financial reports for February 2012 as presented. Motion unanimously approved. F. SINGLE AUDIT OF FEDERALLY ASSISTED GRANT PROGRAMS FOR THE FISCAL YEAR ENDED JUNE 30 2011 The audit was reviewed. MOTION made by Member Spiegel and seconded by Member Kroonen to recommend that the City Council receive and file the Single Audit of Federally Assisted Grant Programs for the fiscal year ended June 30, 2011. Motion unanimously passed. G. RECEIVE AND FILE THE CONTRACT WITH WHITE NELSON DIEHL EVANS LLP TO PERFORM AUDITING SERVICES FOR THE CITY OF PALM DESERT SUCCESSOR AGENCY TO THE PALM DESERT REDEVELOPMENT AGENCY AND THE PALM DESERT RECREATIONAL FACILITIES CORPORATION FOR THE FISCAL YEARS ENDING JUNE 30, 2012, 2013 AND 2014 Mr. Gibson reported that when the contract originally went out to bid, it was for a period of seven years. Staff is satisfied with the work being performed, and wishes to continue with the company for the remaining three years of the seven-year term. Mr. Gibson reminded the Committee that the Request for Proposals was originally sent to local firms as well as those out of town (White Nelson Diehl Evans, LLP is based in Irvine). Unfortunately, local firms do not have the expertise required for local government, particularly with the complication of current Redevelopment issues. The current firm is well versed and educated in the issues the City is currently facing. MOTION made by Member Spiegel and seconded by Member Wohlmuth to recommend that the City Council receive and file the contract with White Nelson Diehl Evans, LLP to perform auditing services for the City of Palm Desert, Successor Agency to the Palm Desert Redevelopment Agency, and 3 INVESTMENT & FINANCE COMMITTEE MINUTES MARCH 27, 2012 the Palm Desert Recreational Facilities Corporation for the fiscal years ending June 30, 2012, 2013 and 2014. 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. ADJOURNMENT There being no further business, this meeting, upon motion duly made, seconded and carried was adjourned at 10:49 a.m. to the next scheduled meeting of April 24, 2012. Niamh Ortega, Recording Secr ary 112