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Home My WebLink AboutAIF Cmte - 02-25-2014 � r �7� MINUTES � � REGULAR MEETiNG OF THE PALM DESERT AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, February 25, 2014 — 10:00 a.m. I. CALL TO ORDER Chairman Gibson called the meeting to order at 10:00 a.m. � � II. ROLL CALL Present: Absent: Russell Campbell, Community Member p � ,� David Erwin, City Attorney � � �• Paul Gibson, Committee Chair/ Finance Director W � =' Abram Goldman, Community Member p p ra ' � :� , Joseph Pradetto, Community Member , Stanley Sperling, Committee Member Z ,�, -�% Van Tanner, Mayor `' Susan Marie Weber, Mayor Pro-Tempore (10:07 a.m.) �� , John Wohlmuth, City Manager .� � �� .. ' Also Present: U Q� � r" - Jared Burns, Desert Willow Golf Resort � A p A �' '°�" � .. : . Jose Luis Espinoza, Assistant Finance Director(10:05 a.m.) � � W �' �' �;.� ;� ;;_ Thomas Jeffrey, Deputy City Treasurer U O � ~ �°� � "�` �,,,v r�7 E' ;e :ir ;� T. Bruce Na tion, Dese rt Wi l low Go l f Res o rt � �, v �= �:.: c�. :F; �� ' - Niamh Ortega, Recording Secretary � �- �= � %"' � �`�� ` Nitin Patel, White Nelson Diehl Evans, LLP V Q � � � ` � +`~ � ' III. ORAL COMMUNICATIONS Chairman Gibson noted that two committee members, Patricia Kent and Ron Crisp, had resigned in recent weeks, and welcomed Abram Goldman and Joseph Pradetto as newly appointed members to the Committee. IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF JANUARY 28. 2Q14 MOTION was made by Member Campbell to approve as presented the Minutes of the regula� meeting of the Palm Desert Audit, Investment and Finance Committee hetd on January 28, 2014. Motion was seconded by Member Wohlmuth and carried by a 6-0-2 vote, with Campbell, Erwin, Gibson, Sperling, Tanner, and Wohtmuth voting AYE, Goldman and Pradetto ABSTAIN. Weber ABSENT. INVESTMENT & FINANCE COMMITTEE MINUTES February 25, 2014 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR JANUARY 2014 Member Jeffrey reported that the book value of the City portfolio for the period ended January 31, 2014 was approximately $213.3 million. Interest earnings were approximately $48,000. Yield-to-maturity was approximately 0.29%. MOTION was made by Member Tanner to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Report for January 2014. Motion was seconded by Member Campbell and carried by a 8-0 vote, with Campbell, Erwin, Gibson, Goldman, Pradetto, Sperling, Tanner and Wohlmuth voting AYE. Weber ABSENT. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR JANUARY 2014 Chairman Gibson provided an overview of the various reports and provided information regarding the purpose and uses of such accounts. MOTION was made by Member Tanner 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 2014. Motion was seconded by Member Campbell and carried by a 8-0 vote, with Campbell, Erwin, Gibson, Goldman, Pradetto, Sperling, Tanner and Wohlmuth voting AYE. Weber ABSENT. C. CITY FINANCIAL REPORT FOR JANUARY 2014 Chairman Gibson provided an overview of the report and highlighted the activity for the month of January. MOTION was made by Member Tanner to receive and file the City financial report for January 2014 as presented. Motion was seconded by Member Campbell and carried by an 8-0 vote,with Campbell, Erwin, Gibson, Goldman, Pradetto, Sperling, Tanner and Weber voting AYE. Wohlmuth ABSENT. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR JANUARY 2014 Mr. Gibson provided an overview of the report. Year-to-date revenue is $499,172, year-to-date expenditures are $312,709. Operating income is $186,463 prior to equipment replacement reserve. ADA compliance construction at the building is almost complete. 2 INVESTMENT & FINANCE COMMITTEE MINUTES February 25, 2014 MOTION was made by Member Tanner to receive and file the Parkview Professional Office Buildings financial report for January 2014 as presented. Motion was seconded by Member Sperling and carried by a 9-0 vote, with Campbell, Erwin, Gibson, Goldman, Pradetto, Sperling, Tanner, Weber and Wohlmuth voting AYE. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORT FOR JANUARY 2014 Mr. Burns provided a summary of the report. MOTION was made by Member Tanner to receive and file the Palm Desert Golf Course Facilities Corporation financial report for January 2014 as presented. Motion was seconded by Member Campbell and carried by a 9-0 vote, with Campbell, Erwin, Gibson, Goldman, Pradetto, Sperling, Tanner, Weber and Wohlmuth voting AYE. (NOTE• With the Committee's consent, Items F, G AND H were discussed concurrentiv Please see the resultinq action noted under each item.) F. CITY OF PALM DESERT AUDITED FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 Mr. Nitin Patel presented the financial reports for the City, PDRFC and the Single Audit. He outlined the scope of each of the audits, the responsibility of the auditors and the responsibility of management. He also highlighted changes to the Audit Standards that are applicable to this year's audit. He indicated that it was a clean audit and found everything tested to be in compliance. There was one finding on the single audit which related to a new requirement regarding reporting. The issue was fixed and the report was filed once it was discovered. There was discussion surrounding potential situations that may occur in the future with upcoming changes to reporting requirements, and suggestions made as to how to handle them should they occur. Mr. Gibson added that he would like the Committee to review the information contained in the notes as it provides a lot of detail that enhances the report. In particular, he highlighted: Pages 48-54, Cash and Investments; Pages 74-75, Pension Plan; Page 76, Fund Balance; and Pages 83-86, OPEB. MOTION was made by Member Tanner to recommend that the City Council receive and file the City of Palm Desert audited financial reports for the fiscal year ended June 30, 2013. Motion was seconded by Member Wohlmuth and carried by a 9-0 vote, with Campbell, Erwin, Gibson, Goodman, Pradetto, Sperling, Tanner, Weber and Wohlmuth voting AYE. G. PALM DESERT RECREATIONAL FACILITIES CORPORATION AUDITED FINANCIAL REPORTS FOR THE FISCAL YEAR ENDED JUNE 30, 2013 (P/ease see discussion under Item F.) 3 INVESTMENT & FINANCE COMMITTEE MINUTES February 25, 2014 MOTION was made by Member Tanner to recommend that the City Council receive and file the Palm Desert Recreational Facilities Corporation audited financial reports for the fiscal year ended June 30, 2013. Motion was seconded by Member Campbell and carried by a 9-0 vote, with Campbell, Erwin, Gibson, Goodman, Pradetto, Sperling, Tanner, Weber and Wohlmuth voting AYE. H. SINGLE AUDIT REPORT FOR THE FISCAL YEAR ENDED JUNE 30, 2013 (P/ease see discussion under/tem F.) MOTION was made by Member Tanner to recommend that the City Council receive and file the Single Audit report for the fiscal year ended June 30, 2013. Motion was seconded by Member Campbell and carried by a 9-0 vote, with Campbell, Erwin, Gibson, Goodman, Pradetto, Sperling, Tanner, Weber and Wohlmuth voting AYE. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. VIII. INFORMATIONAL ITEMS None. IX. ADJOURNMENT MOTION was made by Member Tanner to adjourn the meeting at 10:40 a.m. Motion was seconded by Member Wohlmuth and carried by a 9-0 vote,with Campbell, Erwin, Gibson, Goldman, Pradetto, Sperling, Tanner, Weber and Wohlmuth voting AYE. � Niamh Ortega, Rec ing Secretary 4