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Title:
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(1) Consideration of the Formation of a Finance Advisory Committee and (2) Adoption of a Resolution Establishing Such Committee and Approving Its Bylaws.
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City of Culver City, California
Agenda Item Report
Meeting Date: 10/08/2012 Item Number: A-2
CITY COUNCIL AGENDA ITEM: (1) Consideration of the Formation of a Finance
Advisory Committee and (2) Adoption of a Resolution Establishing Such
Committee and Approving Its Bylaws.
Contact Person/Dept.:
Jeff S. Muir/Finance
Phone Number: 310/253-5865
Fiscal Impact: Yes [] No [X] General Fund: Yes [] No [X]
Public Hearing: [] Action Item: [] Attachments: [X]
Commission Action Required: Yes [] No [X] Date: _______________
Public Notification: (E-Mail) Meetings and Agendas – City Council (10/04/12)
Department Approval:
Jeff Muir (10/01/12)
City Attorney Approval:
Carol Schwab (by H. Baker) (10/02/12)
Chief Financial Officer Approval:
Jeff Muir (10/01/12)
City Manager Approval:
John M. Nachbar (10/04/12)
RECOMMENDATION:
Staff recommends that the City Council:
1. Consider the formation and proposed structure and duties of a Finance Advisory
Committee (FAC); and
2. If the City Council determines to form an FAC, adopt a Resolution approving the
FAC’s Bylaws; or
3. Provide alternate direction to staff.
BACKGROUND:
At the City Council meeting of July 16, 2012, the necessary actions to place a
temporary half-cent local sales tax increase (Measure Y) on the November ballot
were approved. During the discussion, there was consensus for the formation of a
FAC.
Staff has researched several cities throughout California that have a Finance
Advisory Committee or a similar body. Examples include the cities of El Cerrito,
Eureka, Piedmont, Oakland and Emeryville. Staff is recommending a structure
similar to the City of Emeryville, which recently converted its City Council Finance
Committee (two Council Members) to an Advisory Committee that includes two
Council Members, two residents, two members of the business community and one
labor representative.
There are currently three City Council Subcommittees related to financial matters: City of Culver City, California
Agenda Item Report
(1) Joint Finance and Judiciary Subcommittee;
(2) Treasurer’s Investment Subcommittee; and
(3) Audit, Financial Planning, and Budget Subcommittee.
The Judiciary and Finance Subcommittee has two functions as stated in the Culver
City Municipal Code (Section 3.01.020):
1) A Subcommittee member signs the City Treasurer’s demand sheet to
acknowledge that the demand sheet has been received and filed by the City
Council; and,
2) The Subcommittee reviews demands for payment that the City Treasurer has
denied and makes a recommendation to the City Council on their disposition.
The Audit, Financial Planning and Budget Subcommittee works with the City
Manager to forge long-range financial policies to present to the City Council for
consideration. The Subcommittee also meets with the City’s Auditors to discuss the
annual audit.
The Treasurer’s Investment Subcommittee currently consists of the Chief Financial
Officer/City Treasurer, the City Manager, and one public member and one City
Council Member. The Subcommittee reviews City investment policies and practices.
The current City Council appointees to these Subcommittees are Vice Mayor Cooper
and Council Member O’Leary (with Vice Mayor Cooper as the representative on the
City Treasurer’s Investment Subcommittee).
The Joint Finance and Judiciary Subcommittee is created through the Culver City
Municipal Code, and staff recommends no changes at this time. However the
Investment Subcommittee rarely meets. Also, one of the proposed duties of the
FAC is to review the Audit. Therefore, if the City Council determines to establish a
FAC, it is recommended that it dissolve the Treasurer’s Investment Subcommittee
and rename the Audit, Financial Planning and Budget Subcommittee to the Financial
Planning and Budget Subcommittee.
DISCUSSION:
Should the City Council determine to form the FAC, staff proposes the following
specific items as matters where the Committee may provide advice:
• In the event of its approval by the voters, review of the expenditures of
Measure Y funds consistent with the City Council Adopted Budget.
• The Mid-Year Budget Report.
• The City Council Policies Related to Finance
• The City’s investment policy and portfolio.
• The Results of the Annual Independent Audit. City of Culver City, California
Agenda Item Report
• Selection of the City’s independent auditors.
The FAC would be advisory only.
It is recommended the FAC would consist of two Council Members (who should be
the same members appointed to the Joint Finance and Judiciary Subcommittee to
ensure compliance with the Brown Act), two Culver City residents, two members of
the Culver City business community, and a one labor representative. Applicants
must have education or experience in business, accounting, finance or a related
field. In recognition that government finance is a specialized area of knowledge, it is
highly desirable that each of the members possess knowledge of governmental
accounting or governmental financial operations.
All members would be appointed by the City Council. The recommended term of
each member would be four years, however three of the seats would have an initial
term of approximately two years (to June 30, 2012). Meetings are proposed on an
as-needed basis on the 2
nd
Wednesday of the month. Because the composition of
the FAC would not be solely less than a quorum of the City Council (due to the
appointment of additional members) and because the FAC would address a
continuing subject matter, the FAC would be subject to the Brown Act.
Following the direction to establish the FAC, the City Clerk’s Office will post the
vacancies and notify the public of the opportunity to submit applications. It is
expected this process will allow the City Council to consider appointments to the
FAC in January, 2013.
FISCAL ANALYSIS:
There is no direct fiscal impact associated with the establishment of the Finance
Advisory Committee and the adoption of the proposed Resolution. However, staff
support to this Committee will have to be provided by the Chief Financial Officer and
Finance Department staff. This is outside of the current work plan and will have to
be absorbed within existing workloads.
ATTACHMENTS:
1. Proposed City Council Resolution
2. Exhibit ‘A’ – Proposed Bylaws
MOTION:
That the City Council:
City of Culver City, California
Agenda Item Report
1. Consider the formation and proposed structure and duties of a Finance
Advisory Committee; and
2. If the City Council determines to establish a Finance Advisory Committee,
adopt a Resolution establishing the Committee and approving its bylaws; or
3. Provide alternate direction to staff.
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