RESOLUTION NO. 11387
A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ORANGE ELIMINATING THE
AUDIT COMMITTEE AND THE INVESTMENT
ADVISORY COMMITTEE, ESTABLISHING A
NEW INVESTMENT AND AUDIT COMMITTEE,
REPEALING RESOLUTION NOS. 10166 AND
11356, AND STATING QUALIFICATIONS FOR
APPOINTMENT TO ALL CITY COUNCIL
CREATED COMMITTEES.
WHEREAS, the City Council of the City of Orangecreatesboards, commissions, and committees to assistin the carrying out of the City' s businessandto further the public interest; and
WHEREAS, on September 14, 2021 by Resolution No. 11356, the City Council established criteria for such boards, commissions, and committees; and WHEREAS, the City Council establishedthe Audit Committee andthe Investment Advisory Committee in July 1997to provide advice andrecommendationsandto assistthe City Council in discharging its responsibility for the overall stewardship of the City' s financial affairs including review of City investments; and WHEREAS, despite efforts by the City to find qualified candidates, the Audit Committee and the Investment Advisory Committee currently have vacanciesthat remain unfilled and, in somecases, areunable to establish a quorum; and WHEREAS, the purposes of the existing Audit Committee and Investment Advisory Committee arevital to the proper oversight of the City' s financial affairs; and WHEREAS, the City Council hasdeterminedthat combining the functions of these two Committees into one, named the Investment and Audit Committee, will ensure that the purposes of each Committee are carried out in an effective manner by a full Committee of qualified members; and
WHEREAS, the City Council desiresto revise andupdatethe membership criteria for citizen appointment to such boards, commissions, and committees to reflect the elimination of the Audit Committee andthe Investment Advisory Committee and creation of the Investment and Audit Committee.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Orange as follows:
1. That Resolution Nos. 10166 and 11356 are hereby repealed in their entirety.
2. That the Audit Committee and the Investment Advisory Committee of the City of Orange arehereby eliminated in their entirety.
3. That the Investment and Audit Committee of the City of Orange is hereby created as set forth in Exhibit A.
4. That in order to be considered for appointment to specified City Council created boards, commissions, or committees, a citizen must fulfill the applicable qualifications set forth in attachedExhibit A and, pursuant to Orange Municipal Code Section 2.55.020, must meetthesequalifications at all times while serving as a member of such board, commission, or committee.
ADOPTED this 12th day of April 2022.
14/1A ‘. N ,
11Mark A. Murphy, Mayor, City • • ange
ATTEST:
4 zacti rw
Pamela Coleman, City Clerk, City of Orange
STATE OF CALIFORNIA )
COUNTY OF ORANGE ) ss.
CITY OF ORANGE
I, PAMELA COLEMAN, City Clerk of the City of Orange, California, do hereby certify that the foregoing Resolution was duly andregularly adoptedby the City Council of the City of Orange at a regular meeting thereof held on the 12th day of April 2022, by the following vote:
AYES: COUNCILMEMBERS: Nichols, Monaco, Barrios, Dumitru, Tavoularis, Gutierrez, and Murphy
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
ABSTAIN: COUNCILMEMBERS: None
1/1A4,e6C.06teM,LA-- --
Pamela Coleman, City Clerk, City of Orange
EXHIBIT A
QUALIFICATIONS FOR CITY COUNCIL CREATED COMMITTEES
I. Community Development Block Grant Program Committee Number: The Committee shall consist of five members
Qualifications: Members shall have their primary residence in the City.
Members should show an interest in and knowledge of housing and community development issues, especially as they relate to affordable housing andpublic service for residentsof low and moderate income.
Purpose: To provide a public engagement process in the allocation of CDBG funds asrequired by 24 C.F.R. Part 91.105
Duties: Duties are set forth in the CDBG Program Policies and Procedures Manual maintained by the City.
Compensation: None.
2. Design Review Committee
Number: The Committee shall consist of five members.
Qualifications: Members shall have their primary residence or primary place of employment in the City. Members shall be qualified to analyze and interpret architectural and site planning information, including, but not limited to, licensed landscape architects, architects, urban planners, engineersandlicensed generalcontractors.At leasttwo membersshall have professional experiencein urban planning, architectural history or historic preservation and possessa general knowledge of architecture in the Old Towne Historic District.
Purpose: As set forth in Section 17. 08. 020. D of the Orange Municipal Code.
Duties: Duties are set forth in Section 17. 08. 020. D of the Orange Municipal Code.
Compensation: As determined by Resolution of the City Council.
3. Investment and Audit Committee
Number: The Committee shall consist of five members: the City Treasurer and four citizen representatives.
Term: Two years with staggered terms. For the initial Committee, two of the four citizen representativesshall be appointed to a one-year term, then henceforth thosetwo seatsshall be appointed every two years.
Qualifications: The qualifications of the applicants for the citizen representativeswill bereviewed by the City Manager, the Finance Director, andan outside expert in finance, investments,or auditing. Those candidates passing the qualification review process will be presented to the Mayor.
These citizen Committee members shall then be appointed by the City Council in accordancewith proceduresestablishedfor appointing members of the City' s commissions, boards, and committees. The citizen representatives must reside or be permanently employed in the City of Orange. In addition, they must meet at least one of the following criteria:
a) have the designation of Certified Public Accountant ( CPA) or other business- related experience; and/ or ( b) have substantial education and demonstratedmanagerial experience [of no less than five years] in one or more of the following areas: investment banking, investment brokerageand sales, investment management, financial management and planning, or commercial banking. The City Council shall endeavorto ensurethat there is at least one citizen representativethat meetsthe qualifications of criteria a) above, and one citizen representative that meets the qualifications of criteria ( b) above. No member of the Committee shall be financially interested in any contract, or otherwise conduct any business with any member of the City Council, the City Manager, the Finance Director, the City Treasurer, or the City or any of its agencies, either on an individual basisor as a partner, major shareholder, member, or employee of anyfirm.
Purpose:Theprimarypurposeof theCommitteeisto assisttheCity Council in discharging its responsibility for the overall stewardship of the City' s financial affairs, including determining that the City' s investments are consistentwith the City' s investment policy' s principal objectives of safety first, liquidity second, and total rate of return third.
Duties: The Investment and Audit Committee reports to and acts as an advisory body to the City Council, and is to augment management's accountability to the City Council. The Committee shall act solely as an advisorybodyandshallnot exercisedecision-makingauthority,nor shallit be involved in day-to-day financial and accounting operations of the City.
The Committee shall not make, or direct City staff to make, any particular investment, purchase any particular investment products, or do business with any particular investment companies, brokers, or advisors.
Its duties shall consist of the following:
o Select the independent financial auditor for the financial statement audit;
o Monitor the progressand evaluatethe results of the financial statement audit;
o Ensurethe prompt and effective remedy of any control weaknesses and legal compliance violations identified in the course of the financial statement audit;
o Serveasa direct communications link betweenthe City Council and the independent auditor;
o Monitor the adequacyof the City' s internal control structure on an ongoingbasis, suchascashdisbursements, cashreceipting,treasury transactions, etc., asexaminedby the internal audit function and the independent financial auditor;
o Review results of contract compliance audits and financial statement reviews conductedby the City's internal audit function, such as trash contracts, internal controls, and revenue audits; o Review results of compliance audits and reviews conducted by outside agencies, such as Department of Transportation grants, M2 funds for the Senior Mobility program and the Ground Emergency Medical Transport( GEMT) supplementalreimbursement program; o Review the City' s InvestmentPolicy annually and recommend revisions as necessary;
o Review the Treasurer's Report as defined by the Stateof California Government Code Section 53646 to ensure conformance with the City' s Statementof InvestmentPolicy andreview relatedfactors such as risk, diversification, and maturity;
o Provide advice regarding potential investment, potential investment strategies, and suitability of pools such as the Local Agency Investment Fund ( LAIF);
o Provide written recommendationsto the City Council;
o Maintain minutes of the Committee proceedings and report to the City Council quarterly.
Compensation: None.
Meetings: The Committee will meet at least once each quarter and shall hold other meetings on an as needed basis. Meetings will be conducted in compliance with the Brown Act. Meeting days and times shall be establishedby separateResolution of the City Council.
4. Park Planning and Community Events Commission
Number: The Commission shall consist of seven members.
Qualifications: Members shall have their primary residence in the City.
Committee membersshall haveknowledge of sportscomplexesand/or park development, and knowledge of City- sponsoredevents.
Duties: Duties are set forth in Chapter 2. 60 of the Orange Municipal Code.
Compensation: None.
5. Planning Commission
Number: The Commission shall consist of five members.
Qualifications: Members shall have their primary residence in the City.
Members shall have generalknowledge of land use and development.
Purpose: As set forth in Section 17. 08. 020. B
Duties: Duties are set forth in Section 17. 08. 020 of the Orange Municipal Code.
Compensation: As determinedby Resolution of the City Council.
6. Traffic Commission
Number: The Commission shall consist of five members.
Qualifications: The Commission members shall have their primary residence in the City. One member shall be submitted to the Mayor for appointment by the OrangeUnified School District. The Chief of Police or designee and the City Traffic Engineer or designee, shall be non-voting members of the Commission.
Duties: Duties are set forth in Chapter 10. 06 of the Orange Municipal Code.
Compensation: None.