Finance & Asset Management - Meeting Agenda

Transcription

1 Finance & Asset Management - Meeting Agenda Date: Thursday, January 16 th,, 2014 Time: 4:00 p.m. 6:00 p.m. Location: Elliott Bay Room Committee Members: Gloria Skouge (Chair), Ann Magnano (Vice Chair), Betty Halfon, Patrick Kerr, Patrice Barrentine, Jim Savitt and David Ghoddousi 4:00pm I. Administrative: A. Approval of Agenda B. Approval of the December 17 th, 2013 Finance & Asset Management Committee Minutes Chair 4:05pm II. Announcements and/or Community Comments 4:10pm III. Presentations and Discussion Items A. Review of the Financial Statements for December 31 st, Checking Account Activity Report 5:00pm IV. Reports and Action Items A. Action Item: Proposed Resolution 14-01: New Bank Accounts and Signature Authority - Pike Place Market PDA Investment Account with Cetera Investment Services B. Action Item: Proposed Resolution 14-03: Authorization for Contract Authority - Consolidate all PDA Security Camera Recordings to New Server and Software Sabina Proto Sabina Proto Ben Franz-Knight 5:15pm V. Public Comment 5:20pm VI. Property Management A. Residential Property Management Report B. Closed Session (RCW [c]) I. Review of Lease Proposals II. Lease Renewal - Mee Sum Pastries Pike Place III. Review of Delinquency Report a. Vacancy Report b. Current Lease Negotiations C. Open Session: Approval of Lease Proposals D. Action Item: Proposed Resolution 14-02: Lease Proposals - January 2014 John Turnbull Jennifer Maietta Jennifer Maietta 5:50pm VII. Resolution(s) to be Added to Consent Agenda 5:55pm VIII. Concerns of Committee Members Chair 6:00pm IX. Adjournment Chair

2 Pike Place Market Preservation and Development Authority (PDA) FINANCE & ASSET MANAGEMENT COMMITTEE Meeting Minutes Tuesday December 17 th, :00 p.m. to 6:00 p.m. Goodwin Library Committee Members Present: Gloria Skouge, Ann Magnano, Jim Savitt, Betty Halfon, Patrice Barrentine, David Ghoddousi Other Council Members Present: Staff Present: Ben Franz-Knight, Sabina Proto, Jay Schalow, Steve Nelson, Matt Holland,, Bob Beckstrom, Jennifer Maietta, Carl Wagoner Others Present: Mike Smith, Andre Zita The meeting was called to order at 4:03p.m. by Gloria Skouge, Chair I. Administrative A. Approval of the Agenda The agenda was approved by acclamation. B. Approval of the November 19 th, 2013 Finance & Asset Management Committee Minutes. II. Announcements and Community Comments None III. Presentations and Discussion A. Review of the Financial Statements for November 2013 Sabina Proto gave a brief overview of the Financial Statements for November The following content was included with the Financial Statements for November Current Assets were almost stable compared to the prior month. Designated Cash decreased related to the capital expenditures during the month of November. Restricted Cash increased die to the monthly contribution to the debt service accounts. Current Liabilities decreased mainly in the category of Other Liabilities. Long Term Debt decreased due to the monthly payments on our long term obligations. Our Net Position for the current year operating result increased from the prior month by $235,382. Under Accounts Receivable Report, the accounts receivable decreased in November compared to October in the commercial, residential and daystall categories. Under the PDA Operating Statement, the Total Revenue for the end of November 2013 was $14,439,185 or over budget by $569,308. The Total Operating Expense YTD was $10,085,419 or under budget by $62,562. The Net Operating Result YTD for November was $4,353,766 or $631,870 over budget. Under the Net Result after Debt Service & Reserves, the Annual Budget was $ 1,884,836 and for the end of November the actual amount was $2,411,009 which exceeded the annual projection by $ 632,153. Finance & Asset Management Packet Page 2

3 Footnotes on the Operating Expenses noted the following: Commercial Revenue was over budget; Base Rent was on track and the Percent Rent was $336,797 over budget. Residential Revenue was over budget overall by $ 20,881. Surface Revenue was on track for the end of November, Garage Revenue was over budget by $103,100 and Miscellaneous Revenue was over budget at the end of November in Trademark. Under Operating Expenses, Residential expenses were over budget mostly in payroll and in Bad Debt, Daystall expenses were over budget due to the spending of the Arcade Lights Event, Surface Lots expenses were over budget because of the larger amount of the Management fee due to the increase in Revenue and the Utilities were over budget mainly due to the higher electricity consumption and the price rate increases. Percent Rent was over Budget by $336,797 compared to the same period of the last year. 1. Checking Account Activity Report The Checking Account Activity Report was distributed to Dianna Goodsell, Administrative Services Coordinator. IV. Reports and Action Items A. Action Item: Proposed Resolution 13-77: Authorization for Contract Authority Installation of Cameras in the Sky bridge Elevator Cabs Ben Franz-Knight introduced the resolution which states that the Pike Place Market Preservation and Development Authority (PPMPDA) was chartered by the City of Seattle pursuant to RCW et. Seq with the mission of promoting enterprises essential to the functioning of the Pike Place Market, including the preservation and expansion of the low-income residential community, the promotion and survival of small businesses, and the expansion of services to the public market and community; and, WHEREAS, in order to maintain the viability of the Pike Place Market buildings the PPMPDA has determined that the Garage CCTV System should be upgraded to include cameras in the Skybridge Elevator Cabs WHEREAS, the PPMPDA has solicited a bid to add a camera in each Skybridge Elevator. BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA Executive Director or his designee to enter into a contract with Schindler Elevator in an amount not to exceed $20, for the execution of installing a camera in each Skybridge Elevator Cab. The funds for this project will be drawn from Capital Projects Budget Accounting Code Ann Magnano moved, Betty Halfon seconded For: Gloria Skouge, Ann Magnano, Jim Savitt, Betty Halfon, Patrice Barrentine, David Ghoddousi Against: 0 Abstain: 0 Resolution passed unanimously V. Public Comment Items None VI. Property Management A. Residential Property Management Report John Turnbull distributed a copy of the Residential Property Management Report. A copy of the Residential Property Management Report was included with the meeting minute s record. Closed Session started at 4:25p.m. B. Closed Session (RCW [c]) I. Review of Lease Proposals II. Lease Renewal Mee Sum Pastries Pike Place III. Review of Delinquency Report a. Vacancy Report b. Current Lease Negotiations C. Open Session: Approval of Lease Proposals 85 Pike Street, Room 500 Seattle, WA (206) Finance & Asset Management Packet Page 3

4 Closed Session ended at 4:34p.m. Open Session started at 4:34p.m. E. Action Item: Proposed Resolution 13-74: Lease Proposals - December 2013 Jennifer Maietta introduced the resolution which states the Lease Proposals for December 2013 below: Tenant Term Start Date Mee Sum Pastries Five (5) Years January 1, 2013 Jack and Melissa Fong Ann Magnano moved, David Ghoddousi seconded For: Gloria Skouge, Ann Magnano, Jim Savitt Betty Halfon, Patrice Barrentine, David Ghoddousi Against: 0 Abstain: 0 Resolution passed unanimously VII. VIII. IX. Resolution(s) to be added to the Consent Agenda Resolutions and were moved to the Consent Agenda. Concerns of Committee Members None Adjournment The meeting was adjourned at 4:36 p.m. by Gloria Skouge, Chair Meeting minutes submitted by: Dianna Goodsell, Administrative Services Coordinator 85 Pike Street, Room 500 Seattle, WA (206) Finance & Asset Management Packet Page 4

5 Pike Place Market Preservation and Development Authority (PDA) PROPOSED RESOLUTION 14-01: New Bank Accounts and Signature Authority - Pike Place Market PDA Investment Account with Cetera Investment Services January 2014 WHEREAS, The Pike Place Market PDA has opened a new account to invest funds with Cetera Investment Services. LET IT BE RESOLVED, that the following banks be, and hereby are, authorized to honor and pay checks or other appropriate orders for the payment or withdrawal of money drawn in the name of Pike Place Market Preservation and Development Authority (PPMPDA) in this new account, and all accounts set forth below: Bank of America: Operating Account Payroll Account PC1 General Reserve Fund Basic Account PC1 Revenue Fund PC 1 Revenue Fund II Parking Trust Account HUD Depository Account (Checking and Saving) Sanitary Market Replacement Reserves In Trust for Residents Low Income Housing Reserve PC1 South Condominium Association Pine Residential Revenue Fund Pike Place Market PDA Levy Funds Farm Program Account (SNAP and Credit/Debit Cards) Waterfront Project (new) US Bank - Bond Accounts: Refunding Bonds Series 2002 Debt Service Fund Refunding Bonds Series 2002 Debt Service Reserve 2002 Refunding Bonds Sinking Funds State of Washington Local Government Investment Pool: L.G.I.P. - PPMPDA Cetera Investment Services: Finance & Asset Management Packet Page 5

6 Portfolio Investment as follows Investment Grade Fixed Income PIMCO GNMA P Pioneer Government Income Y Municipal Bonds Nuveen In term Duration Muni Bond I Nuveen Short Term Municipal Bon I Short-Duration Bond(STB) Loomis Sayles LTD Term Govt and Agency Y BE IT FURTHER RESOLVED, that the following persons are duly designated to authorize deposits and withdrawals of funds for the above listed accounts: (a) Checks up to $250.00: Any one of the following: Ben Franz-Knight (Executive Director) alone; Sabina Proto (Director of Finance) alone, John Turnbull (Director of Asset Management) alone. (b) Checks over $250.00: Ben Franz-Knight, Sabina Proto, John Turnbull All signatories are reminded, especially those who are co-signing checks, to verify that the check is completely filled out and the purpose of the check is clearly known before signing, including, and not limited to: Against what invoice is the check being drawn? To satisfy what obligation is the check being written? Is the amount of the check appropriate to its purpose? For what reason are monies being transferred between accounts? The Market relies on the diligence of its check signatories. These public funds are deposited in accordance with laws of the State of Washington. This authority revokes all previous authorities for these accounts, and shall continue in force until notice in writing of its revocation shall have been received by said bank. Gloria Scourge, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Finance & Asset Management Packet Page 6

7 MEMO Date: January 16 th, 2014 To: From: Subject: PPM PDA Council Sabina Proto, Director of Finance Investments Summary The PDA currently has $12,309, invested with the LGIP account which has been significantly underperforming for several years. The 2013 earning rate was 0.13%, with a total annual yield of $18,990. Administrative fees are %, annually $1,583. In order to secure a higher rate of return on investments, the PDA has reviewed alternative options for investing its funds. Discussion Primary objectives during this process are: 1) protecting the capital and 2) improving the return on the investments. We have followed a very conservative approach through the years by investing with the Local Governmental Investment Pool and Treasury Bills. Based on the very poor performance of these two categories during the last three years, we looked into other options of investing, always complying with the restrictions upon the public funds. We approached RBC Wealth Management (our Pension Plan Advisors) and the Investment Department at Home Street Bank (Home Street Bank investment department operates through Cetera Investment Services). We provided them with an outline of the main objectives we want to accomplish and the list of the eligible investments options for the Public Funds in our state, Along with the following conditions: Selected Risk Activity: conservative income Amount to be invested: $2,500,000 Length of time months We received the following proposals: RBC Portfolio is allocated: $500,000 in Municipal Bonds; $1,000, 0000 in Agency Bonds, and $1,000,000 in CD. This portfolio is very conservative; Yield to maturity 1.62% with an Estimated Annual income $40,625; Fee amount $23,000 annually. Finance & Asset Management Packet Page 7

8 Cetera Portfolio is allocated: $1,000,000 in State Municipal Bonds and $1,500,000 in Federal Bonds. Projected Yield is 2.93% with an Estimated Annual Income$73,250; Fee amount $18,750 annually. Recommendation Based on these facts, we are recommending investment of funds in the amount of $2,500, with Cetera Investment Services LLC. Finance & Asset Management Packet Page 8

9 Pike Place Market Preservation and Development Authority (PDA) PROPOSED RESOLUTION 14-03: Authorization for Contract Authority Consolidate all PDA Security Camera Recordings to New Server and Software January 2014 WHEREAS, WHEREAS, WHEREAS, The Pike Place Market Preservation and Development Authority (PPMPDA) was chartered by the City of Seattle pursuant to RCW et. seq with the mission of promoting enterprises essential to the functioning of the Pike Place Market, including the preservation and expansion of the low-income residential community, the promotion of survival of small businesses, and the expansion of services to the public market community; and, in order to maintain the quality, reliability, and usefulness of the PPMPDA s security camera recordings and services the PPMPDA has determined that the current recording systems are fragmented and unproductive and need to be replaced; and, the PPMPDA has executed a competitive pricing review process to upgrade and consolidate the PPMPDA s current security camera systems into a single server and expandable recording software platform THEREFORE, BE IT RESOLVED that the PPMPDA Council authorizes the PPMPDA to purchase the server hardware and associated software from Insight and Siemens in an amount not to exceed $16,000.00, for the upgrading and consolidation of the PPMPDA s security camera systems The funds for this project will be drawn from the Capital Projects Budget. The Accounting Code for this project is Capital Inventory Computer Equipment. Gloria Scourge, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Finance & Asset Management Packet Page 9

10 Pike Place Market Preservation and Development Authority (PDA) PROOSED RESOLUTION 14-02: Lease Proposals JANUARY 2014 Tenant Term Start Date Slow Loris Studio One (1) Year March 1, 2014 Jessica Lynch & Arlo Rumpff Pen & Ink Three (3) Years February 1, 2014 Patrick Kerr Rotary Grocery Three (3) Years February 1, 2014 Henry & Jane Kim Gloria Skouge, Secretary/Treasurer Date Date Approved by Council: For: Against: Abstained: Finance & Asset Management Packet Page 10

11 Date: 01/18/2014 Pike Place Market Preservation and Development Authority (PDA) LEASE SUMMARY Business Name/Owner: Slow Loris Studio / Jessica Lynch & Arlo Rumpff Address/Building/Square feet: 1501 Pike Place #316 / Fairley / 285 sf Tenant Since: New Tenant Primary Term: One (1) Year Options: Two (2) Years Use Description: Hand printed/screened shirts and prints produced by Slow Loris Studio Business Name/Owner: Pen & Ink Drawings / Patrick Kerr Address/Building/Square feet: 1501 Pike Place #323 / Fairley / 340 sf Tenant Since: Since 2001 Primary Term: Three (3) Years Options: N/A Use Description: Pen and ink drawings and architectural renderings of Seattle by Patrick Kerr Business Name/Owner: Rotary Grocery / Henry & Jane Kim Jessica Lynch & Arlo Rumpff Address/Building/Square feet: 1504 Pike Place / Fairley / 2,271 sf Tenant Since: Since 2001 Primary Term: Three (3) Years Options: N/A Use Description: Retail business specializing in products normally sold in grocery stores Finance & Asset Management Packet Page 11

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