City Council
Report
City Council Meeting: May 13, 2025
Agenda Item: 4.H
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To: Mayor and City Council
From: Oscar Santiago, Director, Finance Department
Subject: Adoption of a Resolution Amending and Restating the Audit Subcommittee Rules of Conduct to Clarify the Date, Time, and Location of the Meetings Recommended Action
Staff recommends that the City Council:
1. Make a finding that the attached Resolution is not a project subject to the California Environmental Quality Act;
2. Adopt the attached Resolution of the City Council of the City of Santa Monica Amending and Restating Audit Subcommittee Rules of Conduct to Clarify the Date, Time and Location of the Meetings (Attachment A).
Summary
To address concerns regarding noise and audio/visual equipment in the Santa Monica Institute Training Room (“SMI Training Room”), the Audit Subcommittee of the City Council, has recommended moving the quarterly regular meetings to the City Council Chambers. To ensure consistency in the scheduling of these meetings, staff proposes amending and restating the Audit Subcommittee Rules of Conduct to clearly establish the date, time, and location of regular meetings. The proposed changes include formalizing the practice of holding quarterly regular meetings at 6:00 P.M. on the third Tuesday of February, May, August, and November. By amending the existing resolution that establishes the Rules of Conduct for the Audit Subcommittee, the date, time, and location of these meetings will be explicitly clarified.
Discussion
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On July 28, 2015, Council adopted a resolution establishing an Audit Subcommittee to assist the City Council in fulfilling their oversight responsibilities for the financial reporting process, the framework for internal control, and the audit process. The resolution, which details Audit Subcommittee responsibilities, has been amended several times to clarify the duties and responsibilities of the Subcommittee and to adopt and amend Rules of Conduct. On January 10, 2023, the City Council adopted the Resolution Number 11495 (CCS), which is currently the operative rules of conduct for the Audit Subcommittee.
Resolution 11495 provides that regular meetings of the Audit Subcommittee shall be held at least quarterly on such dates, at such locations, and at such times as may be fixed by the Audit Subcommittee. Historically, the Audit Subcommittee has set the meeting schedule for the following year at the last meeting of the calendar year, typically in November and has held meetings in February, May, August, and November of each year. To promote consistency in establishing the meeting date, time and location of regular meetings, staff propose to amend and restate the audit subcommittee rules of conduct to clarify the date, time and location of regular meetings.
The proposed changes include memorializing the practice of holding quarterly regular meetings at 6:00 P.M. on the third Tuesday of the following months: February, May, August and November. The May 20, 2025 regular meeting of the Audit Subcommittee will be held at the SMI Training Room at 6:00 P.M. Following the May 20th regular meeting in the SMI Training Room, the proposed resolution establishes that the City Council Chamber in City Hall will be the regular location for holding the Audit Subcommittee’s regular meetings thereafter. The resolution allows the Audit Subcommittee to amend the meeting calendar to add or delete a regular meeting (provided that the committee meets at least four times a year).
Past Council Actions
Meeting Date Description
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July 28, 2015 Establishment of an Audit Subcommittee
May 9, 2017 Adoption of Audit Subcommittee Rules of Conduct and Recommendation to Create an Ad Hoc Committee
June 27, 2017 Amendment to the Audit Subcommittee Rules of Conduct – Regarding Quorum March 27, 2018 Amendment to the Audit Subcommittee Rules of Conduct – Regarding Quorum October 22, 2019 Resolution Amending the Audit Subcommittee’s Roles to Support the City’s Confidential Ethics Hotline
January 10, 2023 Resolution of the City Council of the City of Santa Monica Amending and Restating Audit Subcommittee Rules of Conduct to Clarify the Timing of the Election of the Audit Subcommittee Chair and Vice-Chair
March 14, 2023 Resolution of the City Council of the City of Santa Monica Establishing Policies for City Boards, Commissions, Committees, Task Forces, and Regional Advisory Boards, and Repealing Resolution Number 11396
July 09, 2024 Resolution of the City Council of the City of Santa Monica Adopting Administrative Instruction Nos. iii-2-3 Discrimination, Harassment, Abusive Conduct, and Retaliation Prevention Policy and Complaint Procedure; iii-2-4, Violence In The Workplace; iii-2-6, Code of Ethics, Council Rules, and Certain Other Laws, to be Applicable to Appointed Officials and Providing for Processes for Investigating and Resolving Alleged Violations
Environmental Review
The resolution is not a “project” subject to CEQA. The resolution is administrative in nature for the establishment of rules, policies, and procedures. Pursuant to CEQA Section 21065, the resolution does not meet the definition of a “project” subject to CEQA as it will not “cause either a direct physical change in the environment, or a reasonably foreseeable indirect physical change in the environment.” Additionally, per Section 15378(b) of the CEQA Guidelines, a “project” does not include organizational or administrative activities of governments that will not result in direct or indirect physical changes in the environment. Therefore, the resolution is not subject to CEQA.
Financial Impacts and Budget Actions
There is no projected financial impact associated with this report's recommended action. 4 of 4
Prepared By: Adriana Franco, Principal Administrative Analyst Approved Forwarded to Council
Attachments:
A. Resolution of the City Council of the City of Santa Monica Amending and Restating Audit Subcommittee Rules of Conduct to Clarify the Date, Time and Location of Meetings.