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Home My WebLink AboutMinutes - Audit, Investment and Finance Committee - July 24, 2012LLL___------ MINUTES /� REGULAR MEETING OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, July 24, 2012 — 10:00 a.m. CALL TO ORDER Chairman Gibson called the meeting to order at 10:05 a.m. ROLL CALL Present: Absent: Paul Gibson, Finance Director William Kroonen, Mayor Pro-Tempore Luis Espinoza, Asst. Finance Director Ron Crisp, Committee Member Thomas Jeffrey, Deputy City Treasurer Robert A. Spiegel, Mayor John Wohlmuth, City Manager David Erwin, City Attorney Russell Campbell, Community Member Patricia Kent, Committee Member Susan Marie Weber, Committee Member Also Present: Al Colombo, Desert Willow Golf Resort Anthony Hernandez, Senior Financial Analyst Richard Mogensen, Desert Willow Golf Resort ITY COUNCIL ACTION Niamh Ortega, Recording Secretary pPROVF.D DENIED Patel, White Nelson Diehl Evans, LL RECEIVCD � �< < OTHER White, Desert Willow Golf Resort III. ORAL COMMUNICATIONS None. IV. APPROVAL OF MINUTES MEETING DATE (c)-aS-aol a — AYES: 8SO(Ni in414�ni NOES: NQLIC. — ABSENT: Nt)()C- _._.-. ABSTAIN: Hno f, VERIFIED BY: �m � -- - Original on File with City ice A. MINUTES OF THE MEETING OF JUNE 26, 2012 MOTION was made by Member Campbell and seconded by Member Erwin to adopt and approve as presented the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on June 26, 2012. Motion unanimously approved. INVESTMENT & FINANCE COMMITTEE MINUTES JULY 24, 2012 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR JUNE 2012 Member Jeffrey presented the report and highlighted the following points: The book value of the City portfolio for the period ended June 30, 2012 was approximately $216.8 million. Interest earnings were approximately $75,000. Yield -to -maturity was approximately 0.43%. MOTION was made by Member Spiegel and seconded by Member Erwin to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Report for June 2012 as presented. Motion unanimously approved. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR JUNE 2012 MOTION was made by Member Campbell and seconded by Member Erwin 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 June 2012. Motion unanimously approved. C. CITY FINANCIAL REPORT FOR JUNE 2012 Mr. Gibson provided an overview of the report. He stated that the most recent sales tax summary indicated that sales tax had increased 4% over last year for the same period. The City is currently on track for revenue, and expenditures should be a wash with revenue. MOTION was made by Member Wohlmuth and seconded by Member Erwin to receive and file the City financial report for June 2012 as presented. Motion unanimously approved. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR JUNE 2012 Mr. Hernandez provided an overview of the report. There is currently a 17% vacancy rate, which is still better than other market properties that are 50% or even 100% vacant. MOTION was made by Member Spiegel and seconded by Member Erwin to receive and file the Parkview Professional Office Buildings financial reports for June 2012 as presented. Motion unanimously approved. 2 INVESTMENT & FINANCE COMMITTEE MINUTES JULY 24, 2012 E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORTS FOR JUNE 2012 Mr. Mogensen provided an overview of the reports in the agenda packet. The report shows that they exceeded the bottom line by $400,000 over last year. There is a negative trend in the new fiscal year, and this summer has not been as busy as last summer. Overall, he remains pleased with last year's results. 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 June 2012 as presented. Motion unanimously approved. F. REVIEW OF AUDIT GUIDELINES AND AUTHORIZATION FOR WHITE NELSON DIEHL EVANS, LLP TO BEGIN WORK ON AUDIT FOR FISCAL YEAR ENDED JUNE 30, 2012 Chairman Gibson introduced Nitin Patel, auditor with White Nelson Diehl Evans, LLP, to the committee. Mr. Patel provided an overview of the responsibilities his firm has with regard to the audited financial statements. He provided a timeline of when he expects various stages of the audit to be complete, with the final fieldwork being conducted in September. Mr. Patel also summarized the differences with this year's audit compared to previous years as a result of the dissolution of the Redevelopment Agency, and provided information to the Committee regarding A131484, the State's efforts to conduct a review of housing funds. More information will be provided to the Committee once the requirements and/or process is determined. MOTION made by Member Spiegel and seconded by Member Campbell to authorize White Nelson Diehl Evans, LLP to begin the audit work for the fiscal year ended June 30, 2012. Motion unanimously approved. G. CONSIDERATION OF ADJOURNMENT OF NEXT REGULAR MEETING TO SEPTEMBER 25, 2012 MOTION was made by Member Weber and seconded by Member Erwin to adjourn the next regular meeting to September 25, 2012. Motion unanimously approved. VI. CONTINUED BUSINESS None. 3 INVESTMENT & FINANCE COMMITTEE MINUTES JULY 24, 2012 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 10:28 a.m. to the next scheduled meeting of September 25, 2012. lCt , Niamh Ortega, Recording Secre 4