2020 05 13 FAC MinutesFINANCIAL ADVISORY COMMISSION MINUTES 1 MAY 13, 2020
REGULAR QUARTERLY MEETING
FINANCIAL ADVISORY COMMISSION
MINUTES
WEDNESDAY, MAY 13, 2020
CALL TO ORDER
A regular quarterly meeting of the Financial Advisory Commission (Commission) was called
to order at 4:00 p.m. by Chairperson Mills.
This meeting was held by teleconference pursuant to Executive orders N -25-20, N-29-20, N-
33-20, and N-35-20, executed by the Governor of California in response to the state of
emergency relating to novel coronavirus disease 2019 (COVID -19) and enabling
teleconferencing accommodations by suspending or waiving specified provisions of the Ralph
M. Brown Act (Government Code § 54950 et seq.).
PRESENT: Commissioners Batavick, Hoffner, Hunter, Rosen, Twohey and Chairperson Mills
ABSENT: None
VACANCY: One
STAFF PRESENT: Finance Director Romero, Financial Service Analyst Hallick, Management
Assistant Delgado, City Clerk Radeva, Management Analyst Mignogna, Public Works
Director/City Engineer McKinney
PLEDGE OF ALLEGIANCE
Chairperson Mills 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 – None
CONSENT CALENDAR ITEMS
1. APPROVE MINUTES DATED FEBRUARY 12, 2020
2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED DECEMBER
31, 2019
3. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED JANUARY
31, 2020
4. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED FEBRUARY
29, 2020
5. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED MARCH 31,
2020
Motion – A motion was made and seconded by Commissioners Twohey/Hoffner to approve
the Consent Calendar, as submitted. Motion passed: ayes 6, noes 0, vacancy 1.
FINANCIAL ADVISORY COMMISSION MINUTES 2 MAY 13, 2020
REGULAR QUARTERLY MEETING
BUSINESS SESSION
1. RECEIVE AND FILE THE COMPREHENSIVE ANNUAL FINANCIAL REPORT
(CAFR) FOR YEAR ENDING JUNE 30, 2019
Finance Director Romero and CPA Partner Phillip White with Eide Bailly auditing firm (EB)
presented the staff report, which is on file in the Finance Department.
The Commission discussed the City’s earthquake insurance coverage with JPIA; CAFR notes
on page no. 62; process to update construction commitments noted on page no. 65 of the
CAFR; footnotes referencing the former Redevelopment Agency of the City ; debt noted in
CAFR that is not a direct obligation to the City; and the fund balance reporting variance from
2016 to 2017.
Mr. White explained EB’s audit purview and scope; circumstances that may cause a
management letter to be issued with the CAFR; and where footnotes pertaining to current
year impacts may be included in the CAFR for year ending June 30, 2020. Staff confirmed
that there were no deficiencies reported in the CAFR for year ending June 30, 2019.
Motion – A motion was made and seconded by Commissioners Hunter/Hoffner to receive and
file the Comprehensive Annual Financial Report for year ending June 30, 2019, as submitted.
Motion passed: ayes 6, noes 0, vacancy 1.
2. RECEIVE AND FILE THE THIRD QUARTER 2019/20 TREASURY REPORTS FOR
JANUARY, FEBRUARY, AND MARCH 2020
Financial Service Analyst Hallick presented the staff report, which is on file in the Finance
Department.
The Commission commended Financial Service Analyst Hallick for her well managing of the
City’s investment portfolio.
Motion – A motion was made and seconded by Commissioners Batavick/Hunter to receive and
file the third quarter 2019/20 treasury reports for January, February, and March 2020, as
submitted. Motion passed: ayes 6, noes 0, vacancy 1.
3. APPOINT TWO COMMISSIONERS TO SERVE ON THE REVIEW AND
SELECTION COMMITTEE FOR REQUEST FOR PROPOSALS (RFP) FOR FEDERAL
EMERGENCY MANAGEMENT AGENCY (FEMA) PROJECT ADMINISTRATION
SERVICES
Finance Director Romero presented the staff report, which is on file in the Finance
Department.
Commissioner Twohey and Chairperson Mills expressed their willingness to serve on the
review and selection committee for the RFP for FEMA Project Administration Services.
Motion – A motion was made and seconded by Commissioners Hoffner/Batavick to appoint
Commissioner Twohey and Chairperson Mills to serve on the review and selection committee
for request for proposals for Federal Emergency Management Agency project administration
services. Motion passed: ayes 6, noes 0, vacancy 1.
FINANCIAL ADVISORY COMMISSION MINUTES 3 MAY 13, 2020
REGULAR QUARTERLY MEETING
4. RECEIVE AND FILE FISCAL YEAR 2019/20 THIRD QUARTER BUDGET REPO RT
Finance Director Romero presented the staff report, which is on file in the Finance
Department.
The Commission and staff discussed the funding and review process for the City’s COVID-19
Small Business Emergency Economic Relief Program.
Chairperson Mills commented that the adjustments and expense reductions were very logical
and well thought out.
Motion – A motion was made and seconded by Commissioners Rosen/Hunter to receive and
file Fiscal Year 2019/20 third quarter budget report, as submitted. Motion passed: ayes 6,
noes 0, vacancy 1.
STUDY SESSION
1. DISCUSS PROJECTS TO INCLUDE IN THE 2020/21 THROUGH 2024/25
CAPITAL IMPROVEMENT PROGRAM (CIP)
Management Analyst Mignogna, Public Works Director/City Engineer McKinney, and City
Consultant Nickerson with NAI Consulting, Inc. presented the staff report, which is on file in
the Finance Department.
Discussion followed on appropriations for Measure G funding for the highway 111 corridor
project; the details of the active request for proposal for highway 111 corridor posted on the
City’s website for form-based code planning services & engineering services; and allocation
of funds to other CIP projects if directed by Council.
The CIP subcommittee, comprised of Commissioners Batavick, Hoffner, and Twohey, provided
an overview of their report (Study Session no. 1, handout no. 2), which included their review
methodology, conclusion of review, and recommendations.
Finance Director Romero said she would like to incorporate subcommittee reports in her
budgetary discussions with Council, so they are aware of the Commissions insights and hard
work provided. The Commission concurred.
2. DISCUSS FISCAL YEAR 2020/21 PRELIMINARY PROPOSED BUDGET
Finance Director Romero presented the staff report, which is on file in the Finance
Department.
The Commission and staff discussed transient occupant tax rebates, and
restrictions/guidelines for filing property tax extensions pursuant to the State of California
Governor’s Executive Order.
The proposed budget subcommittee, comprised of Chairperson Mills and Commissioner Rosen,
provided an overview of their report (Study Session no. 2, handout no. 3), which included
their consensus conclusion. The Commission commended staff on their dedication and efforts
in preparing the 2020/21 proposed budget.
FINANCIAL ADVISORY COMMISSION MINUTES 4 MAY 13, 2020
REGULAR QUARTERLY MEETING
Finance Director Romero noted the subcommittee’s report will be provided in her budgetary
report along with special funding incorporated within the budget going to Council on Tuesday,
May 19, 2020. The Commission concurred.
3. DISCUSS FISCAL YEAR 2020/21 INVESTMENT POLICY
Financial Services Analyst Hallick presented the staff report, which is on file in the Finance
Department.
The Commission concurred with the policy update as presented by staff.
DEPARTMENTAL REPORTS
Staff provided an update on all departmental report items, which are on file in the Fin ance
Department.
1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES
Finance Director Romero noted the following as the Finance Department’s future initiatives:
•Highway 111 Corridor – review of the RFP for form-based code planning services &
engineering services and identify potential funding sources;
•City’s 457 retirement plan – review of plan;
•Financial software system – evaluate current software and determine if there is a need
for software change or improvement;
•City’s reserves fund in fiscal year 2020/21 – continue to monitor; and
•Other post-employment benefits and pension trust – continue to monitor these
benefits, review the established allocation strategies, and determine if additional
funding will be required.
2. FOURTH QUARTER 2019 (OCTOBER–DECEMBER) SALES TAX UPDATE FOR
THE CITY OF LA QUINTA
General discussion followed regarding Measure G sales tax collection for online purchases.
Financial Services Analyst said the Governor of California passed two initiatives related to
sales tax filings: 1) a 90-day extension for businesses with less than one million in sales tax;
2)and a one-year sales tax deferment and ability to go on a payment plan for small businesses
with 5 million in annual sales or less.
3. EXTENDING TERM LIMITS OF MEMBERS SERVING ON CITY BOARDS,
COMMISSIONS, AND COMMITTEES FOR ONE ADDITIONAL YEAR DUE TO
NOVEL CORONAVIRUS DISEASE (COVID-19)
Finance Director Romero said Council adopted Emergency Resolution No. EM-2020-006 on
April 21, 2020, extending the terms of members serving on the all City Commissions with one
additional year; noted the current Commission vacancy will remain and the City will not be
conducting Commission interviews in June 2020; and thanked commissioners for their help
and willingness to continue to serve on the Commission.
FINANCIAL ADVISORY COMMISSION MINUTES 5 MAY 13, 2020
REGULAR QUARTERLY MEETING
COMMISSIONERS’ ITEMS
1. SUBCOMMITTEE UPDATE ON CITY’S COVID-19 SMALL BUSINESS
EMERGENCY ECONOMIC RELIEF PROGRAM (PROGRAM)
Commissioners Hoffner and Hunter provided the Commission with an update on the City’s
Program, including the total fund amount allocated in round one, number of approved
applications, range of loan amounts awarded, and an overview of their experience through
the application review and approval process.
Financial Services Analyst thanked the subcommittee for their time, assistance, and efforts
with executing the Program, and noted the different information resources used to notify
businesses of the Program.
2. COMMISSION ENGAGEMENT STRATEGY TO ALLOW ABILITY TO ACT
PROACTIVELY VERSUS REACTIVELY
Chair Mills requested this item be continued and tabled for discussion at the next Commission
meeting. The Commission concurred.
ADJOURNMENT
There being no further business, it was moved and seconded by Commissioners Rosen/Hunter
to adjourn this meeting at 7:25 p.m. Motion passed: ayes 6, noes 0, vacancy 1.
Respectfully submitted,
Jessica Delgado, Management Assistant
City of La Quinta, California