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HomeMy WebLinkAbout2018-71 - Amending Various Responsibilities of the Finance CommitteeRESOLUTION NO. 2018-71 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF NEWPORT BEACH, CALIFORNIA, AMENDING VARIOUS RESPONSIBILITIES OF THE FINANCE COMMITTEE WHEREAS, the City Council of the City of Newport Beach ("City") has a long and established history of being good guardians and stewards of the public's money; WHEREAS, appropriations, expenditures and other budgetary matters are a primary concern of the City Council; WHEREAS, the City Council has adopted various policies regarding financial matters, WHEREAS, the City Council has adopted policies regarding income property and annexations, which may have an impact on the City's finances; WHEREAS, on December 12, 1994, the City Council adopted Resolution No. 94- 110 establishing the Finance Committee, whose duties and responsibilities have been amended throughout the years to further protect and safe guard the public's money, WHEREAS, the existing Finance Committee is composed of three City Council Members and four citizen appointees charged with a variety of tasks, including, but not limited to: reviewing and monitoring events and issues which may affect the financial status of the City; and making recommendations to the City Council regarding amendments to financial and budgetary policies; and WHEREAS, the City desires to amend various Finance Committee responsibilities as described in this resolution in alignment with the actual responsibilities the Finance Committee undertakes to fulfill its charge. NOW, THEREFORE, the City Council of the City of Newport Beach resolves as follows.. Section 1: The City Council hereby amends the Finance Committee as described in Attachment 'A" which is attached hereto and incorporated herein by reference. Section 2: The City Council hereby repeals all prior resolutions, or parts thereof, related to the Finance Committee that are in conflict with this resolution. Section 3: If any section, subsection, sentence, clause or phrase of this resolution is for any reason held to be invalid or unconstitutional, such decision shall not affect the validity or constitutionality of the remaining portions of this resolution. The City Council hereby declares that it would have passed this resolution and each section, subsection, sentence, clause or phrase hereof, irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid or unconstitutional. Resolution No. 2018-71 Page 2 of 2 Section 4: The recitals provided in this resolution are true and correct and are incorporated into the substantive portion of this resolution. Section 5: The City Council find the adoption of this resolution and the amendment of the Finance Committee is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment) and 15060(c)(3) (the activity is not a project as defined in Section 15378) of the CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly. Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution. ADOPTED this 25th day of September, 2018. ATTEST: c � 2a Leilani I. Brown City Clerk APPROVED AS TO FORM: CITY ATTORNEY'S OFFICE Aaro C arp City Attorney F, V c �ORN1PP Marshall "Duffy" Duffield Mayor Attachment A: Amended Finance Committee Description FINANCE COMMITTEE AUTHORIZATION: Established by Resolution No. 94-110 adopted on December 12, 1994. Modified by Resolution No. 96-100 adopted on December 9, 1996. Disbanded by Resolution No. 98-32 adopted on May 11, 1998. Re-established by Resolution No. 2000-103 adopted on December 12, 2000. Duties and membership amended by Resolution No. 2007- 21 adopted on April 10, 2007. Purpose and responsibilities amended by Resolution No. 2013-32 adopted on April 9, 2013. Membership, qualifications and term of members, and purpose and responsibilities amended by Resolution No. 2015-5 adopted on January 13, 2015. Administrative practices amended by Resolution No. 2015- 40 adopted on May 26, 2015. Term of citizen appointees amended by Resolution No. 2017-58 adopted on September 12, 2017. Various other changes amended by Resolution No. 2018-70 adopted on September 25, 2018. MEMBERSHIP: Seven (7) total. Three (3) Council Members appointed by the Mayor subject to full City Council approval. Four (4) citizen members appointed by the Council Members not on the Committee subject to approval of the full City Council ("Citizen Appointees"). Citizen Appointees have equal voting status. The Mayor shall appoint the chairperson subject to confirmation of the full City Council. Staff support shall be provided primarily by the City Manager and the Finance Director and by other staff as necessary. Meetings shall be held as required by the business needs of the Finance Committee in the City Council Chambers or such other locations as allowed by the Ralph M. Brown Act, on weeknights or weekdays (M -Th) at a time that is convenient for the Finance Committee and the public to TERM OF encourage public participation. COUNCIL MEMBERS: Indefinite pending City Council action. TERM OF CITIZEN APPOINTEES: Appointed annually on a fiscal year (July 1 to June 30) basis. Citizen Appointees shall serve for a one-year term or until their successor is appointed and qualified. QUALIFICATIONS OF CITIZEN APPOINTEES: 1. Must be a resident of the City of Newport Beach. 2. Must be a registered voter in the City of Newport Beach. 3. Must be appointed by a City Council Member. 4. Recommended, but not required, that the appointee be a CPA, CFA or Business/Finance major or other such designation as may be appropriate. PURPOSE & RESPONSIBILITIES: A. Review and monitor events and issues which may affectthe financial status of the City; B. Make recommendations to the City Council regarding amendments to financial and budgetary policies; C. In accordance with Sections 504 & 1101 of the City Charter, review the City Manager's proposed operating budget and give recommendations to the City Manager. Any changes the Committee recommends to the City Manager's Budget shall be provided in writing to the City Council along with the City Manager's presented budget; D. Recommend approval of the final City Manager's operating budget (excluding the budget checklist); E. Recommend for Council approval goals designed to maximize the City's revenues consistent with existing taxation structures and inter -governmental funding opportunities, fee generation consistent with market rate charges for City provided services and market rate fees for utilization of City owned assets. Recommend to Council major initiatives to accomplish identified goals; F. Recommend for Council approval goals designed to minimize the City's cost to provide core services and required activities, consistent with the desired service level for residents and other internal and external customers. Recommend to Council major initiatives to accomplish identified goals; G. After approval of the Capital Improvement Program by the City Council, identify, review and recommend to City Manager the most advantageous methods to fund the City Council's approved Facilities Financing Plan; H. Identify, review and annually recommend to Council the most advantageous methods to fund the City's long term compensation and benefit program liabilities; Review and recommend to Council policies related to the setting of funding goals for reserves, and review on-going progress related thereto; J. Review the structure and documentation of any proposed debt financing to assess the risk associated with such proposed debt usage; K. Conduct audit conference meeting(s) with the auditors to provide independent review and oversight of the City of Newport Beach's financial reporting processes, framework of internal control and to provide a forum in which auditors can candidly discuss concerns in the absence of staff; L. Monitor, and review activities related to Investment Guidelines for City Reserve and investment funds,- and unds;and M. Make recommendations to the City Council in any aspect of the financial affairs of the City. STATE OF CALIFORNIA } COUNTY OF ORANGE } ss. CITY OF NEWPORT BEACH } I, Leilani I. Brown, City Clerk of the City of Newport Beach, California, do hereby certify that the whole number of members of the City Council is seven; the foregoing resolution, being Resolution No. 2018-71 was duly introduced before and adopted by the City Council of said City at a regular meeting of said Council held on the 251h day of September, 2018; and the same was so passed and adopted by the following vote, to wit: AYES: Council Member Diane Dixon, Council Member Jeff Herdman, Council Member Kevin Muldoon, Council Member Scott Peotter, Mayor Pro Tem Will O'Neill NAYS: None ABSENT: Council Member Brad Avery, Mayor Duffy Duffield IN WITNESS WHEREOF, I have hereunto subscribed my name and affixed the official seal of said City this 26th day of September, 2018. Leilani I. Brown City Clerk Newport Beach, California dK ��1 F0,