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Home My WebLink AboutAIF Cmte - 05-27-2014 ,P / .--�----•� M I N UTES REGU�AR MEETING OF THE PALM DESERT ' AUDIT INVESTMENT & FINANCE C MMI � ` , O TTEE � Tuesday, May 27, 2014 — 10:00 a.m. � � �� , � I. CALL TO ORD�R Chairman Gibson called the meeting to order at 10:01 a.m. II. ROLL CALL Present: Absent: Russell Campbell, Community Member John Wohlmuth, City Manager David Erwin, City Attorney Paul Gibson, Committee Chair/ Finance Director Abram Goldman, Community Member Joseph Pradetto, Community Member Stanley Sperling, Committee Member Van Tanner, Mayor Susan Marie Weber, Mayor Pro-Tempore CITYCOUNCILAS.TION APPROVED V DENIED Also Present: RECEIVED OTHER Jared Burns, Desert Willow Golf Resort Anthony Hernandez, Senior Financial Analyst MEETING DATE ____,. ��'F' .._._.. Thomas Jeffrey, Deputy City Treasurer Ay�s�"�'�Q,�nl� _� ln 1 P doer: '�nt'�G,I� Niamh Ortega, Recording Secretary NOES: Derek White, Desert Willow Golf Resort ABSENT��:�+� III. ORAL COMMUNICATIONS ABSTAIN: � VERIFIED BY:. �� rlm None. Original on File with City Clerk's Oftice IV. APPROVAL OF MINUTES A. MINUTES OF THE MEETING OF APRIL 22. 2014 MOTION was made by Member Erwin to approve as presented the Minutes of the regular meeting of the Palm Desert Audit, Investment and Finance Committee held on April 22, 2014. Motion was seconded by Member Tanner and carried by a 8-0 vote, with Campbell, Erwin, Gibson, Goldman, Pradetto, Sperling, Tanner, and Weber voting AYE. Wohlmuth ABSENT. V. NEW BUSINESS A. CITY INVESTMENT SCHEDULE AND SUMMARY OF CASH REPORT FOR APRIL 2014 Member Jeffrey reported that the book value of the City portfolio for the period ended April 30, 2014 was approximately $218.5 million. Interest earnings were approximately $50,000. Yield-to-maturity was approximately 0.39%. INVESTMENT & FINANCE COMMITTEE MINUTES MAY 27, 2014 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 April 2014. Motion was seconded by Member Erwin and carried by a 8-0 vote,with Campbell, Erwin,Gibson,Goldman, Pradetto,Sperling,Tanner, and Weber voting AYE. Wohlmuth ABSENT. B. LOCAL AGENCY INVESTMENT POOL ACCOUNT STATEMENTS FOR APRIL 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 April 2014. Motion was seconded by Member Erwin and carried by an 8-0 vote,with Campbell, Erwin,Gibson,Goldman, Pradetto,Sperling,Tanner,and Weber voting AYE. Wohlmuth ABSENT. C. CITY FINANCIAL REPORT FOR APRIL 2014 Chairman Gibson provided an overview of the report and highlighted the activity for the month of April. MOTION was made by Member Tanner to receive and file the City financia{ report for April 2014 as presented. Motion was seconded by Member Campbell and carried by an 8-0 vote,with Campbell, Ervvin, Gibson, Goldman, Pradetto, Sperling, Tanner, and Weber voting AYE. Wohlmuth ABSENT. D. PARKVIEW PROFESSIONAL OFFICE BUILDINGS FINANCIAL REPORT FOR APRIL 2014 Mr. Hernandez provided an overview of the report. A new tenant is signing a lease at the end of the month, and there will be some tenant relocations at United Way changes suites to allow the new tenant to occupy two adjacent suites. Thirteen air conditioning units have been replaced and that phase of the project is complete. MOTION was made by Member Tanner to receive and file the Parkview Professional Office Buildings financial report for April 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. E. PALM DESERT GOLF COURSE FACILITIES CORPORATION FINANCIAL REPORT FOR APRIL 2014 Mr. Burns and Mr. White provided a summary of the report. Overall, the course is continuing to do well. The classic car and concert was a sold-out event with 500 guests, and additional marketing programs and incentives are being considered. May is shaping up to be a good month. 2 INVESTMENT 8� FINANCE COMMITTEE MINUTES MAY 27, 2014 MOTION was made by Member Campbell to receive and file the Palm Desert Golf Course Facilities Corporation financial report for April 2014 as presented. Motion was seconded by Member Enivin and carried by an 8-0 vote, with Campbell, Erwin, Gibson, Goldman, Pradetto, Sperling, Tanner, and Weber voting AYE. Wohlmuth ABSENT. F. WELLS FARGO INDEPENDENCE BONDS Chairman Gibson provided an overview of the staff report. MOTION was made by Member Tanner to recommend that the City Council appropriate, and authorize the Finance Director to use and apply, $2.1 million from the Energy Independence Fund and approximately$2.5 million from the Generat Fund to prepay the lease agreement with respect to, and redeem, the outstanding Palm Desert Financing Authority Energy Independence Program, Variable Rate Demand Lease Revenue Bonds, Series 2009 (Federally Taxable). Motion was seconded by Member Erwin and carried by an 8-0 vote, with Campbell, Ennrin, Gibson, Goldman, Pradetto, Sperling, Tanner, and Weber voting AYE. Wohlmuth ABSENT. VI. CONTINUED BUSINESS None. VII. OLD BUSINESS A. PALM DESERT FINANCING AUTHORITY BOND ISSUANCE None. VIII. INFORMATIONAL ITEMS Member Goldman asked that the City look at changing districts and bringing Palm Desert into the Imperial Irrigation District (IID) instead of Edison Company. Member Erwin explained that the district boundaries end in Imperial County, but that IID had an agreement with Edison to provide service to the eastern end of the Coachella Valley. (For purposes of clarification, the service boundary allows IID to provide service east of Washington Street and north of 1-10, including Thousand Palms and other communities to the northeast with a few exceptions south of the I-10 in the northemmost part of Palm DesertJ. Member Erwin indicated that the City had considered this a number of years ago and had explored the cost of doing so, and at the time it was not feasible or prudent as the funds would be required to come from the General Fund. Member Goldman indicated that staff should research and determine if it was feasible now. Member Tanner said that it was likely that the City could not afford to undertake such a project at this time, and did not want to have staff spend time conducting research or studies that would ultimately lead to the same decision. 3 INVESTMENT � FINANCE COMMITTEE MINUTES MAY 27, 2014 Member Goldman requested that the City take another look as it did not make sense to him as to why a less expensive service would not be offered to Palm Desert residents. Chairman Gibson responded that if Member Goldman would provide him whatever information he had, he would take his suggestion and refer it to the City Manager for review and determination as to how to proceed. IX. ADJOURNMENT MOTION was made by Member Tanner to adjourn the meeting at 10:26 a.m. Motion was seconded by Member Erwin and carried by an 8-0 vote, with Campbell, Erwin, Gibson, Goldman, Pradetto, Sperling, Tanner, and Weber voting AYE. Wohlmuth ABSENT. Niamh Orte , cording Secr ry 4