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Home My WebLink AboutAIF Cmte - 01-28-2014 � ��_� �� ,.--�T--.., M I N UTES '� ;��M��` REGULAR MEETING OF THE PALM DESERT �� AUDIT, INVESTMENT & FINANCE COMMITTEE . i �� .!''.. ��, � Tuesday, January 28, 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 Ron Crisp, Committee Member David Erwin, City Attorney Paul Gibson, Committee Chair/ Finance Director Stanley Sperling, Committee Member Van Tanner, Mayor CITYCOLJNCILACTION Susan Marie Weber, Mayor Pro-Tempore AI'E'ROVF.D DF.NI�;D John Wohlmuth, City Manager RECEIVED �' F�� (YTF II�,R Also Present: MET�TlNG DATE � - �'7' ��l� Jared Burns, Desert Willow Golf Resort ,,�5: ,�,�r„�,�-�a�n i[��/r l,[,� .�J,��, �i7r��r.,_ Jose Luis Espinoza, Assistant Finance Dire F�. NG'�1N _ Anthony Hernandez, Senior Financial Analy BSENT: N �`n�'� --- Thomas Jeffrey, Deputy City Treasurer Niamh Ortega, Recording Secretary AI3STA11�T: N �'�� --- Derek White, Desert Willow Golf Resort VERIFIED I3Y: � � - Original on File with City Clcrl:'s t'fice III. ORAL COMMUNICATIONS Chairman Gibson reported on recent changes to the Brown Act taking effect as of January 1, 2014. Of particular importance to this Committee is a change in voting procedures, requiring a roll call vote for each action. IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF NOVEMBER 26, 2013 MOTION was made by Member Wohlmuth to approve as presented the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on November 26, 2013. Motion was seconded by Member Campbell and carried by a 5-0-2 vote, with Campbell, Erwin, Gibson, Sperling and Wohlmuth voting AYE, Tanner and Weber ABSTAIN. INVESTMENT & FINANCE COMMITTEE MINUTES January 28, 2014 V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR NOVEMBER AND DECEMBER 2013 Member Jeffrey reported that the book value of the City portfolio for the period ended December 31, 2013 was approximately $208.7 million. Interest earnings were approximately $47,000. Yield-to-maturity was approximately 0.28%. 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 November and December 2013. Motion was seconded by Member Erwin and carried by a 7-0 vote, with Campbell, Erwin, Gibson, Sperling, Tanner, Weber and Wohlmuth voting AYE. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR NOVEMBER AND DECEMBER 2013 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 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 November and December 2013. Motion was seconded by Member Wohlmuth and carried by a 7-0 vote, with Campbell, Erwin, Gibson, Sperling, Tanner, Weber and Wohlmuth voting AYE. C. CITY FINANCIAL REPORT FOR DECEMBER 2013 Chairman Gibson provided an overview of the report and highlighted the activity for the month of December. The most recent sales tax report reflects an increase of 1.9%. Valley cities with auto dealerships show an increase of 10% for the same quarter; however, all other valley cities reflect a decrease in their sales tax. TOT is increasing, with current numbers showing a $300,000 increase over last year's amount of$9.1 million, which is a record for the City. Licenses and permit charges are up approximately $1 million over last year, franchise fees are equal to last year and interest income is within budget. MOTION was made by Member Campbell to receive and file the City financial report for December 2013 as presented. Motion was seconded by Member Tanner and carried by a 7-0 vote, with Campbell, Erwin, Gibson, Sperling, Tanner, Weber and Wohlmuth voting AYE. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR NOVEMBER AND DECEMBER 2013 Mr. Hernandez provided an overview of the report. Year-to-date revenue is approximately $127,000, year-to-date expenditures are approximately $288,000. Operating income is $139,000 prior to equipment replacement reserve. 2 INVESTMENT & FINANCE COMMITTEE MINUTES January 28, 2014 The upper restrooms are being modified to bring them into ADA compliance at a cost of$7,000 to$10,000. There are currently 14 air conditioning units that are over 20 years old and in need of replacement. It is expected that the project will go out to bid in February and work will commence in March. MOTION was made by Member Tanner to receive and file the Parkview Professional Office Buildings financial reports for November and December 2013 as presented. Motion was seconded by Member Campbell and carried by a 7-0 vote, with Campbell, Erwin, Gibson, Sperling, Tanner, Weber and Wohlmuth voting AYE. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORT FOR NOVEMBER AND DECEMBER 2013 Mr. Burns provided a summary of the report. He highlighted that the total revenue year-to-date is $31,772 better than budget. Rounds year-to-date showed an increase of 1,559 over budget, and over 2,000 better than prior year. Overall, year- to-date is showing fantastic numbers with an aggressive budget, and is currently $212,000 better than prior year. January is looking great,and is expected to surpass budget. MOTION was made by Member Wohlmuth to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for November and December 2013 as presented. Motion was seconded by Member Campbell and carried by a 7-0 vote, with Campbell, Erwin, Gibson, Sperling, Tanner, Weber and Wohlmuth voting AYE. F. INDEPENDENT ACCOUNTANTS' REPORT ON AGREED-UPON PROCEDURES PERFORMED ON THE MEASURE A TRANSPORTATION FUND FOR THE FISCAL YEAR ENDED JUNE 30 2013 Mr. Gibson reviewed the report and noted that there were no findings. MOTION was made by Member Tanner 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, 2013. Motion was seconded by Member Wohlmuth and carried by a 7-0 vote, with Campbell, Erwin, Gibson, Sperling, Tanner, Weber and Wohlmuth voting AYE. G. STATE CONTROLLER'S REPORT OF THE CITY OF PALM DESERT'S SPECIAL GAS TAX STREET IMPROVEMENT FUND FOR THE PERIOD OF JULY 1 2008 THROUGH JUNE 30 2013 TRAFFIC CONGESTION RELIEF FUND ALLOCATIONS FOR THE PERIOD OF JULY 1 2008 THROUGH JUNE 30 2011 AND PROPOSITION 1B ALLOCATIONS FOR THE PERIOD OF JULY 1, 2007 THROUGH JUNE 30, 2013 Mr. Gibson reported that the State Controller conducts a review every five years on gas tax, traffic congestion relief, and Proposition 1 B allocations. During this time period, Prop 1 B was used for resurfacing Country Club and Highway 111. 3 INVESTMENT & FINANCE COMMITTEE MINUTES January 28, 2014 MOTION was made by Member Tanner to recommend that the City Council receive and file the State Controller's Report of the City of Palm Desert's Special Gas Tax Street Improvement Fund for the period of July 1, 2008 through June 30, 2013, Traffic Congestion Relief Fund Allocations for the period of July 1, 2008 through June 30, 2011, and Proposition 16 Allocations for the period of July 1, 2007 through June 30, 2013. Motion was seconded by Member Wohlmuth and carried by a 7-0 vote, with Campbell, Erwin, Gibson, 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 Campbell to adjourn the meeting at 10:25 a.m. Motion was seconded by Member Tanner and carried by a 7-0 vote, with Campbell, Erwin, Gibson, Sperling, Tanner, Weber and Wohlmuth voting AYE. ��L��____��,-�-�.. Niamh Ortega, Recording etary � 4