HomeMy WebLinkAboutRes 2019-42- Updated Bylaws for the AIF CmteSTAFF REPORT
CITY OF PALM DESERT
FINANCE DEPARTMENT
MEETING DATE: June 27, 2019
PREPARED BY: Thomas J. Metz, Deputy City Treasurer
REQUEST: Adopt Ordinance No. 1349 revising Chapter 2.16 of the Palm Desert
Municipal Code and Resolution No. 2019- 42 approving bylaws
for the Palm Desert Finance Committee
Recommendation
That the City Council:
1. Waive further reading and pass to second reading Ordinance No. 1349
revising Chapter 2.16 of the Palm Desert Municipal Code relative to the
Palm Desert Audit, Investment, and Finance Committee; and
2. Waive further reading and adopt Resolution No. 2019- 42 , approving
bylaws for the committee renamed as the Palm Desert Finance
Committee.
Strategic Plan Obiective
Not applicable.
Executive Summary
The City of Palm Desert ("City") advisory finance committee was originally created in 1974 by
ordinance as an investment committee. It consisted of City staff and a councilmember. Since
that time, the committee has evolved and it now includes councilmembers, staff, the city
attorney, and community members, with each change being made by amendment to the
municipal code.
Most citizen advisory committees are established by resolution; the resolution often includes
committee bylaws. To align this committee with other City committees of similar responsibility,
staff is proposing that the ordinance be revised to reflect simply the existence of the
committee and to establish bylaws by resolution. The proposed bylaws would: 1) rename the
Audit, Investment, and Finance Committee as the Finance Committee; 2) remove City staff
from the committee in order to transform it into a model of democratic governance; and 3)
authorize a maximum of five community members on the committee.
Backaround Analvsis
Although California does not require its municipalities to have finance committees, most
progressive cities have one.
June 27, 2019 — Staff Report
Adoption of Finance Committee Bylaws Resolution
Page 2 of 3
In 1974, the Palm Desert City Council adopted an ordinance authorizing the creation of the
Palm Desert Investment Committee, consisting of a council member (in practice, the mayor),
the city manager, and the director of finance. The committee was authorized to make
collective decisions on the deposit and investment of public funds. This committee was more
inward -looking because, at the time, the City did not have large cash balances, an investment
policy, or an investment officer. Monies were often deposited into a collateralized bank
account for terms that were consistent with the City's cash flow needs.
In 1985, pursuant to state law, the City adopted an Investment Policy that established
conservative and prudent guidelines for the City's investments. The City, as a steward of
public monies, has always had a policy that is more conservative than State law. The current
finance committee annually reviews this policy prior to the presentation to the City Council for
approval. In addition, in 1995, the City hired an investment officer.
With the addition of the Investment Policy and the investment officer, the committee's duties
changed. The committee, having evolved from its original three members to its current nine
(9) members, (four community members, two staff members, two Council members, and the
city attorney) acts as a review and advisory body to the City Council on matters that include
the City's audit, the monthly investment reports, monthly financial reports for the City, the
Parkview Office Complex, Desert Willow, and any other requests of the City Council that are
so directed. Traditionally, the mayor and the mayor pro tem are the two Council members on
the committee.
The committee's name has also changed several times over the years. It is currently called
the Palm Desert Audit, Investment, and Finance Committee (AIFC). The committee has two
staff members who are voting members. Up until 2017, staff chaired the committee. This is
unusual when compared to other citizen committees, so staff examined how other municipal
finance committees operate and has noted the following common denominators:
• The committee advises the legislative body on municipal finance matters.
• The committee has written bylaws.
• The committee has five, seven, or nine community members.
• The committee has no municipal staff as members.
• The city council appoints committee members.
• Committee members typically serve staggered terms.
Unlike other City committees, the AIFC does not have bylaws because it was originally
established by ordinance. Generally speaking, bylaws for this type of committee would not
be codified into the municipal code. To be consistent with other City advisory committees,
staff recommends that the city council adopt a resolution approving bylaws for the AIFC. The
ordinance would be revised to authorize a finance committee, as was first done in 1974.
Therefore, staff wishes to make the following recommendations for the bylaws:
That the AIFC be renamed the Palm Desert Finance Committee. Council members,
community members, and staff commonly refer to the AIFC as the "finance committee"
since the committee's formal name is too long and too cumbersome to use;
G:IFinancelNiamh Ortegallnvestment CommitteelStaff Reportsl4doption of bylaws 0520191SR-Adopt Committee bylaws and
rename 052019. docx
June 27, 2019 — Staff Report
Adoption of Finance Committee Bylaws Resolution
Page 3 of 3
2. That the mayor and the mayor pro tem continue to serve on the Finance Committee.
Due to the mayoral rotation system, each member of the Council has a chance to sit
on the committee and acquire a better knowledge of the City's finances;
3. That all City staff members and the city attorney be removed as voting members of
the Finance Committee; and
4. That the maximum number of community members be increased from four to five. This
would provide the city council with the discretion to decide whether the committee
should have five members or seven members. In either case, community members
would constitute the majority on the committee.
The basic duties of the Finance Committee will not change with these actions. They will simply
be memorialized for both present and future committee members.
Fiscal Analvsis
There is no fiscal impact from this actions contemplated herein.
LEGAL REVIEW DEPT. REVIEW FINANCIAL CITY MANAGER
REVIEW
N/A
R be rgreaves et M. Moore fS^-( Janet M. Moore auri Aylaian
City orney Director of Finance Director of Finance City Manager
ATTACHMENTS: 1) Ordinance No. 1349
2) Resolution No. 2019- 42
3) Exhibit "A" — Palm Desert Finance Committee Bylaws
G:IFinanceMamh Ortegallnvestment CommitteelStaff ReportslAdoption of bylaws 0520191SR-Adopt Committee bylaws and
rename 052019.docx
ORDINANCE NO. 1349
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PALM DESERT,
CALIFORNIA, AMENDING CHAPTER 2.16 RELATIVE TO THE FINANCE
COMMITTEE
THE CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, DOES HEREBY
ORDAIN AS FOLLOWS:
Section 1: That Chapter 2.16 be and the same 2.16 and Section 2.16.010 be and the
same is amended to read as follows:
"2.16.010 Purpose
There is established in the city a finance committee, the composition, duties and bylaws
of which shall be adopted by the City Council by resolution."
Section 2: The City Clerk shall certify to the passage and adoption of this Ordinance
and shall cause the same to be published once in a newspaper of general circulation, printed and
published in the County of Riverside and circulated within the City of Palm Desert, and the same
shall be in force and effect thirty (30) days after its adoption.
PASSED, APPROVED AND ADOPTED by the City Council of the City of Palm Desert,
California, at its regular meeting held this day of , 2019, by the following vote
to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
SUSAN MARIE WEBER, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
RESOLUTION NO. 2019- 42
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALM
DESERT, CALIFORNIA DECLARING ITS INTENTION TO APPROVE
BYLAWS AND RENAME THE AUDIT, INVESTMENT, AND FINANCE,
COMMITTEE TO THE FINANCE COMMITTEE
The City Council of the City of Palm Desert, California (hereafter referred to as the
"City Council") Hereby Finds, Determines, Resolves, and Orders as follows:
WHEREAS, by prior Ordinance No. 59, the City Council of the City of Palm Desert
determined and declared that there is a need for an investment committee to function in the
city and established the Palm Desert Investment Committee; and,
WHEREAS, by prior Ordinance No. 1105, the name of the Palm Desert Investment
and Finance Committee was changed to the Palm Desert Audit, Investment, and Finance
Committee; and,
WHEREAS, the Palm Desert Audit, Investment and Finance Committee desires to
adopt bylaws, simplify the name of the committee to the Finance Committee, and identify
the responsibilities of the committee by resolution.
NOW, THEREFORE, BE IT RESOLVED, DETERMINED, AND ORDERED BY THE
CITY COUNCIL OF THE CITY OF PALM DESERT, CALIFORNIA, AS FOLLOWS:
Section 1. That the above recitals are true and correct and constitute the findings
of the City Council in this case.
Section 2. The bylaws of the Finance Committee, attached hereto as Exhibit A,
are hereby approved and adopted as the official bylaws of the committee.
PASSED, APPROVED, AND ADOPTED this day of 2019 by
the following vote to wit:
AYES:
NOES:
ABSENT:
ABSTAIN:
SUSAN MARIE WEBER, MAYOR
ATTEST:
RACHELLE D. KLASSEN, CITY CLERK
CITY OF PALM DESERT, CALIFORNIA
Exhibit "A"
Palm Desert Finance Committee
Bylaws
Article I — Name. This committee is called the Finance Committee (previously known as
the Audit, Investment, and Finance Committee, or the Investment Committee). ,
Article II — Powers and Duties. The Finance Committee reviews and, if necessary,
advises the city council on: 1) auditing and internal controls; 2) financial reporting; 3)
investments; 4) municipal debt and refunding; and 5) such other functions as the city
council may request.
Article III — Members. The Finance Committee has up to seven members: two city
council members appointed by the mayor and up to five community members appointed
by the city council by majority vote. Community members serve staggered four-year
terms.
Article IV — Officers. The Finance Committee has two elected officers: the chair and
the vice -chair. The chair conducts all meetings. If the chair is absent, then the vice -chair
acts as chair. If the chair and the vice -chair are absent, then the committee appoints a
committee member to act as provisional chair.
Article V — Meeting Notice. Regular meetings are noticed by posting an agenda at least
72 hours (three business days) before meetings (Cal. Gov't Code section 54954.2(a)).
Special meetings are noticed by posting an agenda at least 24 hours (one business day)
before meetings (Cal. Gov't Code section 54956). Emergency meetings can be called if
dire circumstances threaten public health or safety, as long as one -hour notice is given
to media if requested (Cal. Gov't Code section 54956.5).
Article VI — Meetings. The Finance Committee meets at least once a quarter, but may
meet more frequently by majority vote of the committee, subject to availability of
unscheduled space. All Finance Committee meetings are held at Palm Desert City Hall.
A quorum is established if a simple majority of committee members are present.
Article VII — Voting. All committee motions are approved by majority vote. If there is a
tie vote with no abstentions, then the vote is recorded as a tie (no action). A subsequent
motion may be offered and acted upon before finalizing the consideration of the item.
Article Vill — Subcommittees. The city council or the city manager can direct the
Finance Committee to create an ad hoc subcommittee to study an issue. The
subcommittee will report its findings and recommendations to the Finance Committee.
Article IX — Bylaws Amendment. The city council can amend the Finance Committee
bylaws by majority vote.
GARnanceWiamh Ortegallnvestment CommitteelStaff ReportslAdoption of bylaws 0520191BYLAWS-Finance Committee
052019.docx