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`q44:09 City Council Staff Report
December 10, 2024
Agenda Item No. 5
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Jason AI -Imam, Finance Director/Treasurer - 949-644-3126, [email protected]
PREPARED BY: Jason AI -Imam, Finance Director/Treasurer TITLE: Resolution No. 2024-91: Amending the Term for Finance Committee Members to Provide that any Seat on the Finance Committee Held by a Councilmember or the Councilmember's Citizen Appointee is Automatically Vacated Once the Councilmember is No Longer a Member of the City Council
ABSTRACT:
At its November 19, 2024 meeting, the Newport Beach City Council unanimously voted, via a straw poll, in favor of staff returning with a resolution that provides that any seat on the Finance Committee held by a Councilmember or a Councilmember's appointee is automatically vacated once the Councilmember is no longer a member of the City Council.
RECOMMENDATIONS:
a) Determine this action is exempt from the California Environmental Quality Act (CEQA) pursuant to Sections 15060(c)(2) and 15060(c)(3) of the CEQA Guidelines because this action will not result in a physical change to the environment, directly or indirectly; and
b) Adopt Resolution No. 2024-91, A Resolution of the City Council of the City of Newport Beach, California, Amending the Term for Finance Committee Members to Provide that any Seat on the Finance Committee Held by a Councilmember or the Councilmember's Citizen Appointee is Automatically Vacated Once the Councilmember is No Longer a Member of the City Council.
DISCUSSION:
On November 19, 2024, pursuant to City Council Policy A-1, Mayor Will O'Neill requested that the City Council consider adopting a resolution that provides that any seat on the Finance Committee held by a Councilmember or Councilmember's appointee is automatically vacated once the Councilmember is no longer a member of the City Council. The City Council unanimously voted, via a straw poll, in favor of bringing the item back at a future meeting.
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Resolution No. 2024-91: Amending the Term for Finance Committee Members December 10, 2024
The Finance Committee is comprised of three City Councilmembers, appointed by the mayor, subject to City Council approval, and four citizen members appointed by the City Councilmembers not on the Finance Committee, subject to City Council approval (Citizen Appointees). Resolution No. 2017-58 established the term of Citizen Appointees to align with the fiscal year and clarified the duration of a Citizen Appointee's term to be one year or until a Citizen Appointee's successor is appointed. Because the fiscal year runs July through June, the Finance Committee term does not align with Councilmember terms. The proposed resolution provides that any seat on the Finance Committee held by a Councilmember or Councilmember's appointee is automatically vacated once the Councilmember is no longer a member of the City Council.
FISCAL IMPACT:
There is no fiscal impact related to this item.
ENVIRONMENTAL REVIEW:
Staff recommends the City Council find this action 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.
NOTICING:
The agenda item has been noticed according to the Brown Act (72 hours in advance of the meeting at which the City Council considers the item).
ATTACHMENT:
Attachment A — Resolution No. 2024-91
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Attachment A
Resolution No. 2024-91
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RESOLUTION NO. 2024-91
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
NEWPORT BEACH, CALIFORNIA, AMENDING THE TERM
FOR FINANCE COMMITTEE MEMBERS TO PROVIDE
THAT ANY SEAT ON THE FINANCE COMMITTEE HELD
BY A COUNCIL MEMBER OR THE COUNCIL MEMBER'S
CITIZEN APPOINTEE IS AUTOMATICALLY VACATED
ONCE THE COUNCIL MEMBER IS NO LONGER A
MEMBER OF THE CITY COUNCIL
WHEREAS, the City of Newport Beach ("City") is governed, in part, by its Charter, Municipal Code, and adopted City Council Policies;
WHEREAS, the City Council 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 adopted Resolution No. 94-110 on December 12, 1994, establishing the Finance Committee, whose duties and responsibilities have been amended throughout the years to further protect and safeguard the public's money; WHEREAS, the Finance Committee is charged with a variety of tasks including, but not limited to, reviewing and monitoring events and issues that may affect the financial status of the City and making recommendations to the City Council regarding amendments to financial policies;
WHEREAS, the existing Finance Committee is composed of three City Council Members, appointed by the Mayor, subject to City Council approval, and four citizen members, appointed by City Council Members not on the Finance Committee, subject to City Council approval ("Citizen Appointees");
WHEREAS, the City Council adopted Resolution No. 2017-58 on September 12, 2017, establishing the term of its Citizen Appointees to align with the fiscal year and clarifying the duration of a Citizen Appointee's term to be one year or until a Citizen Appointee's successor is appointed and qualified; and
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Resolution No. 2024-
WHEREAS, the City Council desires to amend the term for Finance Committee members to provide that a seat on the Finance Committee held by a Council Member or the Council Memebr's Citizen Appointee be automatically vacated once the Council Member is no longer a member of the City Council.
NOW, THEREFORE, the City Council of the City of Newport Beach hereby resolves as follows:
Section 1: The City Council hereby amends the term for Finance Committee members as described in Attachment A, which is incorporated herein by this reference.
Section 2. The City Council herebyrepeals all prior resolutions related to the Finance Committee that conflict with this resolution.
Section 3: The recitals provided in this resolution are true and correct and are incorporated into the operative part of this resolution.
Section 4: 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.
Section 5: The City Council finds the adoption of this resolution is not subject to the California Environmental Quality Act ("CEQA") pursuant to Sections 1 a060(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, Division 6, Chapter 3, because it has no potential for resulting in physical change to the environment, directly or indirectly.
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Resolution No. 2024-
Section 6: This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting the resolution.
ADOPTED this 101h day of December, 2024.
Will O'Neill
Mayor
ATTEST:
Leilani I. Brown
City Clerk
APPROVED AS TO FORM:
CITY ATTORNEY'S OFFICE
Xarob C. Harp
City Attorney
Attachment A: Finance Committee Description
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ATTACHMENT A
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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.
Responsibilities 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 encourage public participation.
TERM OF COUNCIL
MEMBERS: Indefinite, unless the Council Member ceases to be a member of the City Council (which shall result in automatic vacation of the Council Members membership on the Finance
Committee), or action is taken by the City Council to replace the member.
WK
TERM OF CITIZEN
APPOINTEES: Citizen Appointees shall be appointed annually on a fiscal year (July 1 to June 30) basis and shall serve for a one-year term, or until a successor citizen is appointed and qualified, unless: (1) the Council Member who appointed the Citizen Appointee ceases to be a member of the City Council (which shall result in the automatic vacation of the Citizen
Appointee's membership on the Finance Committee); or (2) action is taken by the City Council to replace the Citizen Appointee.
QUALIFICATIONS OF
CITIZEN APPOINTEES:
A. Must be a resident of the city of Newport Beach.
B. Must be a registered voter in Newport Beach.
C. Must be appointed by a City Council Member.
D. Recommended, but not required, that the appointee be a CPA, CFA or BusinesslFinance, major or other such
designation as may be appropriate.
PURPOSE &
RESPONSIBILITIES: A. Review and monitor events and issues which may affect the 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);
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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
erm compensation and benefit program liabilities;
I. 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 5-10
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
M. Make recommendations to the City Council in any
aspect of the financial affairs of the City.
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