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Home My WebLink AboutAIF Cmte - 09-23-2014 i �--�--� M I N UTES � � REGULAR MEETING OF THE PALM DESERT _ AUDIT, INVESTMENT & FINANCE COMMITTEE Tuesday, September 23, 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 David Erwin, City Attorney Paul Gibson, Committee Chair/ Finance Director Susan Marie Weber, Mayor Pro-Tem Abram Goldman, Community Member Joseph Pradetto, Community Member Stanley Sperling, Committee Member Van Tanner, Mayor John Wohlmuth, City Manager Also Present: CTfY COUNCILACT'ION Shirley Hotwagner, Community Member APPROVED DENTED � Thomas Jeffrey, Deputy City Treasurer RECEIVED OTHER � Niamh Ortega, Recording Secretary w e��iv�e � t� _ Nitin Patel, CPA, White Nelson Diehl Evans, LL�tEETING DATE ��"i3��y Derek White, Desert Willow Golf Resort pyEg; ��+�Son.�✓ricK,Soi�el.Wc�!a �"ra.hnLr NOES: ��o�'''P ABSENT: �� III. ORAL COMMUNICATIONS A}3STAIN: No� VERIFIED BY: �K� r1 m None. Original on File with City Clerk's Office IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF JUNE 24, 2014 MOTION was made by Member Pradetto to approve as presented the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on June 24, 2014. Motion was seconded by Member Wohlmuth and carried by a 7-0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Tanner and Wohlmuth voting AYE. Erwin and Weber ABSENT. V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR JUNE, JULY AND AUGUST 2014 INVESTMENT & FINANCE COMMITTEE MINUTES SEPTEMBER 23, 2014 Member Jeffrey reported that the book value of the City portfolio for the period ended July 31, 2014 was approximately $223.8 million. Interest earnings were approximately $59,000. Yield-to-maturity was approximately 0.31%. The book value of the City portfolio for the period ended August 31, 2014 was approximately $224.4 million. Interest earnings were approximately $60,000. Yield- to-maturity was approximately 0.32%. MOTION was made by Member Tanner to recommend that the City Council receive and file the City Investment Schedule and Summary of Cash Reports for June, July and August 2014. Motion was seconded by Member Campbell and carried by a 7-0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Tanner and Wohlmuth voting AYE. Ervvin and Weber ABSENT. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR JULY AND AUGUST 2014 Chairman Gibson provided an overview of the various reports. 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 July and August 2014. Motion was seconded by Member Pradetto and carried by a 7-0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Tanner and Wohlmuth voting AYE. Erwin and Weber ABSENT. C. CITY FINANCIAL REPORT FOR AUGUST 2014 Chairman Gibson provided an overview of the report and highlighted the activity for the month of August. MOTION was made by Member Tanner to receive and file the City financial report for August 2014 as presented. Motion was seconded by Member Campbell and carried by a 7-0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Tanner and Wohlmuth voting AYE. Erwin and Weber ABSENT. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR JULY AND AUGUST 2014 Mr. Gibson provided an overview of the report. MOTION was made by Member Tanner to receive and file the Parkview Professional Office Buildings financial reports for July and August 2014 as presented. Motion was seconded by Member Pradetto and carried by a 7-0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Tanner and Wohlmuth voting AYE. Erwin and Weber ABSENT. 2 INVESTMENT 8� FINANCE COMMITTEE MINUTES SEPTEMBER 23, 2014 E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORT FOR JULY AND AUGUST 2014 Mr. White provided a summary of the report. Overall, the course is continuing to do well. He mentioned that in the wake of recent rain storms, business actually improved. It was one of the few courses in the area that sustained only minor damage such as felled tree limbs, allowing for the opportunity to accommodate groups originally booked for courses that did not fare as well. MOTION was made by Member Campbell to receive and file the Palm Desert Golf Course Facilities Corporation financial reports for July and August 2014 as presented. Motion was seconded by Member Pradetto and carried by a 7- 0 vote, with Campbell, Gibson, Goldman, Pradetto, Sperling, Tanner and Wohlmuth voting AYE. Erwin and Weber ABSENT. F. REVIEW OF AUDIT GUIDELINES AND AUTHORIZATION FOR WHITE NELSON DIEHL EVANS, LLP TO BEGIN WORK ON AUDIT FOR FISCAL YEAR ENDED JUNE 30, 2014 Mr. Patel was welcomed back by the Committee and presented an outline of his firm's responsibilities in this year's audit, and gave an overview of the intended scope of the audit. He also highlighted two new standards, GASB 66 and 70, which are in effect for this year's audit, and indicated that he does not anticipate any impact to the work performed for the City. The Committee received the presentation and there were no objections to the firm begin�ing its work on the audit. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. VIII. INFORMATIONAL ITEMS Member Goldman, following up on his presentation at a previous meeting, reminded the Committee of his desire for the City to revisit the feasibility of redefining the boundaries between Southern California Edison (SCE) and Imperial Irrigation District (IID). He indicated that his research found that IID would be significantly cheaper than SCE, up to 30%, and with advancements in technology there should be a way to bring cheaper electricity to all of Palm Desert. He stated that he had a resolution to be adopted by the Committee and suggested that the City hire a consultant to further investigate the idea of switching to IID. 3 INVESTMENT & FINANCE COMMlTTEE MINUTES SEPTEMBER 23, 2014 Mayor Tanner responded that this issue has been considered at the Council level at different times, and has come back as cost-prohibitive. Member Wohlmuth furthered that it had been explored a number of times, most recently in 2005 or 2006, and the cost of the infrastructure required in order to make such a project a reality was in the range of $500 million, calculated as a 75-year repayment to Edison should the City choose to purchase the equipment. It was reasonable to think that the cost would have increased since that time, and is a significant cost to pass on to taxpayers. The City was faced with the decision of whether it is more beneficial to invest in a public utility company or to allow residents to make their own cost-saving choices through the use of solar energy and other energy-efficient techniques. It was decided at that time that it was more beneficial to the residents to implement their own strategies. The Audit, Investment and Finance Committee is not a decision-making committee, and solely makes recommendations to Council for its consideration specifically related to audits and investments. Member Gibson, supported by Mayor Tanner, recommended that Member Goldman provide his resolution and supporting information to the City Manager for review to determine if the item should be brought to Council for further action. IX. ADJOURNMENT MOTION was made by Member Tanner to adjourn the meeting at 10:40 a.m. Motion was seconded by Member Campbell and carried by a 6-0 vote, with Campbell, Goldman, Pradetto, Sperling, Tanner and Wohlmuth voting AYE. Erwin, Gibson and Weber ABSENT. l� , �, r�� - �-. r- Niamh Ortega, Recordin ecretary 4