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2019 05 15 FAC Minutes FINANCIAL ADVISORY COMMISSION MINUTES 1 MAY 15, 2019 REGULAR QUARTERLY MEETING FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, MAY 15, 2019 CALL TO ORDER A regular quarterly meeting of the La Quinta Financial Advisory Commission (Commission) was called to order at 4:00 p.m. by Vice-Chair Twohey. PRESENT: Commissioners: Batavick, Hunter, Lopez, Rosen, Turbow, and Vice- Chair Twohey ABSENT: Chairperson Mills PLEDGE OF ALLEGIANCE Commissioner Lopez led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA – Confirmed ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS 1. HIGHWAY 111 CORRIDOR AREA PLAN Senior Planner Flores gave a brief presentation on the 3-day charrette related to the Highway 111 Corridor Area Plan that was held on April 24, 25, and 26. He explained and gave details to the commission regarding the different sessions that took place. CONSENT CALENDAR ITEMS 1. APPROVE FINANCIAL ADVISORY COMMISSION MINUTES DATED April 10, 2019 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MARCH 31, 2019 3. RECEIVE AND FILE THIRD QUARTER 2018/19 TREASURY REPORTS FOR JANUARY, FEBRUARY, AND MARCH 2019 Motion – A motion was made and seconded by Commissioners Rosen/Batavick to approve the Consent Calendar, as submitted. Motion passed: ayes 6, noes 0, absent 1 (Mills). BUSINESS SESSION 1. REVIEW AND APPROVE RECOMMENDED CHANGES TO SURPLUS PROPERTY AND EQUIPMENT POLICY FINANCIAL ADVISORY COMMISSION MINUTES 2 MAY 15, 2019 REGULAR QUARTERLY MEETING Finance Director Campos presented the staff report, which is on file in the Finance Department. The Commission and staff discussed the different procedures pertaining to surplus property with estimated value of $500 or less and the recommended time frame for policy review by the Finance Director. The Commission inquired on disposition of surplus property by individual employees. Staff replied that section IV (4) states the personal scrapping, recycling and disposal that is unauthorized by individual employees. Motion – A motion was made and seconded by Commissioners Lopez/Hunter to recommend Council approval for changes to surplus property and equipment policy. Motion passed: ayes 6, noes 0, absent 1 (Mills). 2. REVIEW AND APPROVE RECOMMENDED CHANGES TO PURCHASING AND CONTRACTING POLICY Account Technician Armendariz presented the staff report, which is on file in the Finance Department. Account Technician Armendariz provided the Commission with an overview of all changes recommended for the Purchasing and Contracting Policy (Policy). Staff provided the Commission with the process of expending and reporting to Council expenditures between $15,000 to $50,000. The Commission inquired and requested clarification to what a “responsible bidder” was that’s stated in section III (6) of the Policy. City Attorney, Ihrke explained that the Policy is set forth by law and legal guidelines and provided a brief explanation on the difference between a responsive and responsible bidder. The Commission recommended the following changes: • Adding that expenditures from $15,000 to $50,000 are reviewed quarterly by City Council. Motion – A motion was made and seconded by Commissioners Rosen/Lopez to recommend Council approval for changes to Purchasing and Contracting Policy and incorporate the amendment listed above. Motion passed: ayes 6, noes 0, absent 1 (Mills). 3. REVIEW AND APPROVE THE FISCAL YEAR 2019/20 MEETING DATES Financial Service Analyst Hallick presented the staff report, which is on file in the Finance Department. Motion – A motion was made and seconded by Commissioners Lopez/Hunter to approve the fiscal year 2019/20 meeting dates, as submitted. Motion passed: ayes 6, noes 0, absent 1 (Mills). 4. APPROVE FISCAL YEAR 2019/20 INVESTMENT POLICY Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. FINANCIAL ADVISORY COMMISSION MINUTES 3 MAY 15, 2019 REGULAR QUARTERLY MEETING General discussion followed on scope of changes; state code restrictions; and additional recommended changes by Commission. Motion – A motion was made and seconded by Commissioners Lopez/Rosen to recommend Council approval for the fiscal year 2019/20 Investment Policy. Motion passed: ayes 6, noes 0, absent 1 (Mills). STUDY SESSION 1. DISCUSS INTERFUND LOAN REPAYMENT OPTIONS Finance Director Campos presented the staff report, which is on file in the Finance Department. The Commission and staff discussed the outstanding loans for the SilverRock Resort Fund, the different types of Development Impact Fee (DIF) loans, the history and overview of the outstanding loans due to the General Fund, and the options available for repayment of the DIF Fund loans. The Commission inquired how the City would write-off these types of loans. Staff explained that the loans are disclosed annually in the City’s financial statements, a write- off would be disclosed as an extraordinary expense, it would remove the receivable completely because it’s not collectable and there’s no cash value to the accounting journal entry, and it would drop the total Reserves Fund balance. The Commission requested Staff prepare a draft financial statement note disclosure for the write-off and provide examples of financial statement impacts. Staff agreed to bring back the requests at a special meeting on June 5, 2019. 2. FISCAL YEAR 2019/20 PRELIMINARY PROPOSED BUDGET Finance Director Campos presented the staff report, which is on file in the Finance Department. The Commission and staff discussed the General Fund Summary for budgeted surplus request; revenue projections; the General Fund expenses for capital improvements; Art in Public Places Fund and other Special Funds for the proposed budget that will be presented at the next Council meeting on June 4; and Internal Service Fund expenses. 3. DISCUSS BANKING AND MERCHANT SERVICES Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. COMMISSIONER ROSEN LEFT THE DAIS AT 5:43 P.M The Commission and staff discussed the process and possible fees associated with the City’s transfer from one bank to another and the Selection Committee’s recommended choice from the top two banks that were given a second interview. FINANCIAL ADVISORY COMMISSION MINUTES 4 MAY 15, 2019 REGULAR QUARTERLY MEETING Commission Batavick complimented staff on the effort put forth during the interviews and selection process. He provided his perspective of the second interview and the overall selection process for banking and merchant services. Finance Director Campos provided the Commission with her recommended timeline for issuing another request for proposal for banking and merchant services in the future. Commissioner Batavick motioned to support the selection committee and staff’s recommendation of Bank of the West for banking and merchant services for Council approval. Motion – A motion was made and seconded by Commissioners Batavick/Turbow to recommend Council approval for new banking and merchant services with Bank of the West. Motion passed: ayes 5, noes 0, absent 2 (Mills and Rosen). DEPARTMENTAL REPORTS All departmental reports are on file in the Finance Department. 1. ANNUAL BOARD AND COMMISSION RECRUITMENTS Staff provided the Commission with the annual board and commission recruitment process and timeline. They also mentioned the other vacancies for all of the City of La Quinta’s board and commissions. 2. FOURTH QUARTER 2018 (OCTOBER – DECEMBER 2018) SALES TAX UPDATE FOR THE CITY OF LA QUINTA Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. Staff and Commission discussed the timing for sales tax disbursements. COMMISSIONERS’ ITEMS – None ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Turbow/Lopez to adjourn this meeting at 6:08 p.m. Motion passed: ayes 5, noes 0, absent 2 (Mills and Rosen). Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California