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2020 08 05 FAC FINANCIAL ADVISORY COMMISSION AGENDA 1 AUGUST 5, 2020 REGULAR QUARTERLY MEETING FINANCIAL ADVISORY COMMISSION AGENDA CITY HALL COUNCIL CHAMBERS 78-495 Calle Tampico, La Quinta REGULAR MEETING ON WEDNESDAY, AUGUST 5, 2020 AT 4:00 P.M. ****************************** SPECIAL NOTICE Teleconferencing and Telephonic Accessibility in Effect 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 in the Ralph M. Brown Act (Government Code § 54950 et seq.), members of the Financial Advisory Commission, the City Manager, City Attorney, City Staff, and City Consultants may participate in this meeting by teleconference. Additionally, pursuant to the above-referenced executive orders, the public is not permitted to physically attend at City Hall the meeting to which this agenda applies, but any member of the public may listen or participate in the open session of this meeting as specified below. Members of the public wanting to listen to this meeting may do so by tuning-in live via https://laquinta.12milesout.com/video/live. Members of the public wanting to address the Financial Advisory Commission, either for public comment or for a specific agenda item, or both, are requested to send an email notification to the La Quinta Finance Department Management Assistant at jdelgado@LaQuintaCA.gov , and specify the following information: 1) Full Name 4) Public Comment or Agenda Item Number 2) City of Residence 5) Subject 3) Phone Number 6) Written or Verbal Comments Financial Advisory Commission agendas and staff www.laquintaca.gov FINANCIAL ADVISORY COMMISSION AGENDA 2 AUGUST 5, 2020 REGULAR QUARTERLY MEETING Verbal public comments requests to speak must be emailed to the Finance Department Management Assistant no later than 3:00 p.m. on the day of the meeting; the City will facilitate the ability for a member of the public to be audible to the Financial Advisory Commission and general public for the item(s) by contacting him/her via phone and queuing him/her to speak during the discussion. Only one person at a time may speak by telephone and only after being recognized by the Financial Advisory Written public comments, received prior to the adjournment of the meeting, will be distributed to the Financial Advisory Commission, incorporated into the agenda packet and public record of the meeting, and will not be read during the meeting unless, upon the request of the Financial Advisory Commission Chair, a brief summary of any public comment is asked to be read, to the extent the Finance Department Management Assistant can accommodate such request. It would be appreciated that any email communications for public comments related to the items on the agenda, or for general public comment, are provided to the Finance Department Management Assistant at the email address listed above prior to the commencement of the meeting. If that is not possible, and to accommodate public comments on items that may be added to the agenda after its initial posting or items that are on the agenda, every effort will be made to attempt to review emails received by the Finance Department Management Assistant during the course of the meeting. The is taken on any agenda item to allow the Finance Department Management Assistant to review emails and share any public comments received during the meeting. All emails received by the Finance Department Management Assistant, at the email address above, until the adjournment of the meeting, will be included within the public record relating to the meeting. ****************************** CALL TO ORDER Roll Call: Commissioners: Batavick, Hoffner, Hunter, Rosen, Twohey and Chair Mills PLEDGE OF ALLEGIANCE PUBLIC COMMENT At this time members of the public may address the La Quinta Financial Advisory Commission on any matter not listed on the agenda. Please email Written Public Comments to jdelgado@laquintaca.gov and limit your comments to three minutes (approximately 350 words). The Commission values your comments; however, in accordance with State law, no action shall be taken on any item not appearing on the agenda unless it is an emergency item authorized by the Brown Act [Government Code Section 54954.2(b)]. FINANCIAL ADVISORY COMMISSION AGENDA 3 AUGUST 5, 2020 REGULAR QUARTERLY MEETING CONFIRMATION OF AGENDA ANNOUNCEMENTS, PRESENTATIONS AND WRITTEN COMMUNICATIONS 1. Capital Improvement Program and Development Updates CONSENT CALENDAR NOTE: Consent Calendar items are routine in nature and can be approved by one motion. 1. Approve Minutes Dated June 3, 2020 2. Approve Minutes Dated June 9, 2020 3. Receive and File Revenue and Expenditure Report Dated May 31, 2020 BUSINESS SESSION 1. Appoint a Financial Advisory Commissioner Chairperson and Vice-Chairperson to serve for fiscal year 2020/21. STUDY SESSION None DEPARTMENTAL REPORTS 1. Verbal update on -19 Small Business Emergency Economic Relief Program 1. Sub-Committee verbal update on Police Services ADJOURNMENT The La Quinta Financial Advisory Commission (Commission) will hold a special meeting on October 7, 2020 and the next regular quarterly meeting of the Commission will be held on November 4, 2020. Both meetings will be held at the La Quinta Study Session Room, 78-495 Calle Tampico, La Quinta, CA 92253 and commencing at 4:00 p.m. DECLARATION OF POSTING I, Jessica Delgado, Management Assistant, of the City of La Quinta, do hereby declare near the entrance to the Council Chamber at 78-495 Calle Tampico, and the bulletin boards at 78-630 Highway 111, and 51-321 Avenida Bermudas, on July 30, 2020. DATED: July 30, 2020 Jessica Delgado, Management Assistant City of La Quinta, California FINANCIAL ADVISORY COMMISSION AGENDA 4 AUGUST 5, 2020 REGULAR QUARTERLY MEETING Public Notices The La Quinta City Hall Council Chambers is handicapped accessible. If special equipment is needed for the hearing impaired, please call the -7092, twenty- four (24) hours in advance of the meeting and accommodations will be made. If special electronic equipment is needed to make presentations to the Commission, (760) 777-7092. A one (1) week notice is required. If background material is to be presented to the Commission during a Commission meeting, please be advised that eight (8) copies of all documents, exhibits, etc., must be supplied to the Management Assistant for distribution. It is requested that this take place prior to the beginning of the meeting. Any Writings or documents provided to a majority of the Commission regarding any item(s) on the agenda will be made available for public inspection at the Community Development counter at City Hall located at 78-495 Calle Tampico, La Quinta, California, 92253, during normal business hours. FINANCIAL ADVISORY COMMISSION MINUTES 1 JUNE 3, 2020 SPECIAL MEETING FINANCIAL ADVISORY COMMISSION MINUTES WEDNESDAY, JUNE 3, 2020 CALL TO ORDER A special meeting of the Financial Advisory Commission (Commission) was called to order at 2:00 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, City Manager McMillen, and City Attorney Ihrke PLEDGE OF ALLEGIANCE Commissioner Batavick led the audience in the Pledge of Allegiance. PUBLIC COMMENT ON MATTERS NOT ON THE AGENDA – None CONFIRMATION OF AGENDA Commissioner Hoffner requested to update the Commission on the status of the City’s COVID-19 Small Business Emergency Economic Relief Program under Commissioners’ Items. The Commission concurred. ANNOUNCEMENTS, PRESENTATIONS, AND WRITTEN COMMUNICATIONS – None CONSENT CALENDAR ITEM NO. 1 FINANCIAL ADVISORY COMMISSION MINUTES 2 JUNE 3, 2020 SPECIAL MEETING CONSENT CALENDAR ITEMS 1. APPROVE MINUTES DATED MAY 13, 2020 2. RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED APRIL 30, 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. BUSINESS SESSION 1. APPOINT TWO COMMISSIONERS TO SERVE ON THE AD-HOC COMMITTEE FOR POLICE SERVICES REVIEW Finance Director Romero presented the staff report, which is on file in the Finance Department. Finance Director Romero provided the Commission with a summary of tasks and objectives and anticipated timeline for the police services review process required to be conducted by the members appointed to serve on the ad-hoc committee. The Commission and staff discussed the proposed fiscal year 2020/21 police services presented to Council at the June 2, 2020 regular meeting; revenue options available to the Riverside County Sheriff’s Department; the scope of the police services study prepared by Matrix Consulting; and fiscal year 2020/21 anticipated police services cost increase. Commissioners Batavick and Rosen expressed their willingness to serve on this ad- hoc committee. Motion – A motion was made and seconded by Commissioners Hoffner/Twohey to appoint Commissioners Batavick and Rosen to serve on the ad-hoc committee for police services review. Motion passed: ayes 6, noes 0, vacancy 1. 2. APPROVE FISCAL YEAR 2020/21 INVESTMENT POLICY Financial Services Analyst Hallick presented the staff report, which is on file in the Finance Department. Motion – A motion was made and seconded by Commissioners Twohey/Hoffner to approve fiscal year 2020/21 Investment Policy as presented. Motion passed: ayes 6, noes 0, vacancy 1. FINANCIAL ADVISORY COMMISSION MINUTES 3 JUNE 3, 2020 SPECIAL MEETING 3. REVIEW AND APPROVE FISCAL YEAR 2020/21 MEETING DATES Finance Director Romero presented the staff report, which is on file in the Finance Department. Staff noted Commission meetings’ start time will remain at 4:00 p.m. Motion – A motion was made and seconded by Commissioners Hunter/Twohey to approve the fiscal year 2020/21 meeting dates. Motion passed: ayes 6, noes 0, vacancy 1. STUDY SESSION 1. 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 the expense increases to special funds; Measure G funds reserved for the Highway 111 Corridor Plan (Plan); the request for proposal for form-based code planning services & engineering services (RFP) for the Plan currently posted on the City’s website; and the committee members appointed to review the RFP proposals for the Plan. Chairperson Mills expressed his willingness to join the committee for the Plan and represent the Commission in the RFP review process. The Commission concurred. Finance Director Romero said she would communicate Chairperson Mills’ desire to represent the Commission and participate on the committee to Design and Development staff. Further discussion followed on the general fund expenses for the Music Line project and the contribution commitments by the Cities of La Quinta, Indio and Coachella; possible staff reductions and furloughs being presented to Council for review and consideration during a special meeting on June 3, 2020; and Measure G reserve fund balance. The Commission expressed general opposition on fulfilling the City’s financial obligation to contribute to the Music Line project at this time due to the financial constraints imposed by COVID-19. The Commission requested a special meeting be held on Tuesday, June 9, 2020, to review and discuss Measure G fund balance in reserves. FINANCIAL ADVISORY COMMISSION MINUTES 4 JUNE 3, 2020 SPECIAL MEETING DEPARTMENTAL REPORTS 1. FINANCE DEPARTMENT CURRENT AND FUTURE INITIATIVES Finance Director Romero presented the departmental report, which is on file in the Finance Department. Finance Director Romero also thanked the Commission for their continued commitment to serve on the Commission. COMMISSIONERS’ ITEMS 1. COMMISSION ENGAGEMENT STRATEGY TO ALLOW ABILITY TO ACT PROACTIVELY VERSUS REACTIVELY Chairperson Mills requested projects being brought to the Commission should be brought sooner rather than later and thanked staff for highlighting upcoming projects in the Departmental Report No. 1 – Finance Department Current and Future Initiatives of this Agenda, was helpful to this request. 2. UPDATE OF SUBCOMMITTEE REVIEW FOR THE CITY’S COVID-19 SMALL BUSINESS EMERGENCY ECONOMIC RELIEF PROGRAM Commissioner Hoffner gave a update on the funding and review process for the City’s COVID-19 Small Business Emergency Economic Relief Program. ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Hunter/ Rosen to adjourn this meeting at 4:06 p.m. Motion passed: ayes 6, noes 0, vacancy 1. Respectfully submitted, Jessica Delgado, Management Assistant City of La Quinta, California FINANCIAL ADVISORY COMMISSION MINUTES 1 JUNE 9, 2020 SPECIAL MEETING FINANCIAL ADVISORY COMMISSION MINUTES TUESDAY, JUNE 9, 2020 CALL TO ORDER A special 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, Accounting Manager Martinez, City Clerk Radeva PLEDGE OF ALLEGIANCE Commissioner Hunter 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 – None BUSINESS SESSION 1. DISCUSS FISCAL YEAR 2020/21 PROPOSED BUDGET AND APPROVE ALLOCATION OF MEASURE G SALES TAX REVENUE Finance Director Romero presented the staff report, which is on file in the Finance Department. CONSENT CALENDAR ITEM NO. FINANCIAL ADVISORY COMMISSION MINUTES 2 JUNE 9, 2020 SPECIAL MEETING Staff recommended the partial allocation of 2017/18 Measure G reserve balance for the SilverRock Event Site and to increase the amount allocated for Public Safety Contract Services in 2020/21 in order to fund the capital improvement project program budget as presented and balance the General Fund budget. The Commission and Staff discussed the Measure G fund savings for police services; possible options for future savings; and reviewed the Measure G Revenue and Expenditures Summary (Attachment 2). Further discussion followed on the Music Line project contribution commitments by the Cities of La Quinta, Indio, and Coachella. The Commission suggested changing the budget memorandum for the Music Line project (Attachment 4) to state that the letter is supported by the majority of the Commission not unanimously. Finance Director Romero said that she would make the edit to Attachment 4 and include it as an attachment to the final budget recommendation to Council. The Commission showed their support of the strategy to have a balanced budget with the consensus that police services would be reviewed, and any potential savings would reduce the allocation for Measure G. Motion – A motion was made and seconded by Commissioners Hunter/Hoffner to receive and file fiscal year 2020/21 proposed budget, as submitted. Motion passed: ayes 6, noes 0, vacancy 1. Finance Director Romero said staff would provide the Commission with updated budget documents along with charts and graphs after final review. The Commission commended staff on their hard work and efforts in preparing the 2020/21 budget. STUDY SESSION – None DEPARTMENTAL REPORTS – None COMMISSIONERS’ ITEMS – None ADJOURNMENT There being no further business, it was moved and seconded by Commissioners Hunter/Rosen to adjourn this meeting at 4:35 p.m. Motion passed: ayes 6, noes 0, vacancy 1. Respectfully submitted, Claudia Martinez, Accounting Manager City of La Quinta, California City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING:August 5, 2020 STAFF REPORT AGENDA TITLE: RECEIVE AND FILE REVENUE AND EXPENDITURE REPORT DATED M 31, 2020 RECOMMENDATION Receive and file revenue and expenditure report dated May 31, 2020. EXECUTIVE SUMMARY The report summarizes the City’s year-to-date (YTD) revenues and period expenditures for May 2020 (Attachment 1). These reports are also reviewed by the City Council. FISCAL IMPACT – None BACKGROUND/ANALYSIS Below is a summary of the column headers used on the Revenue and Expenditure Summary Reports: Original Total Budget – represents revenue and expenditure budgets the Council adopted in June 2019 for fiscal year 2019/20. Current Total Budget – represents original adopted budgets plus any Council approved budget amendments from throughout the year. Period Activity – represents actual revenues received and expenditures outlaid in the reporting month. Fiscal Activity – represents actual revenues received and expenditures outlaid YTD. Variance Favorable/(Unfavorable) - represents the dollar difference between YTD collections/expenditures and the current budgeted amount. Percent Used – represents the percentage activity as compared to budget YTD. CONSENT CALENDAR ITEM NO. The revenue report includes revenues and transfers into funds from other funds (income items). Revenues are not received uniformly throughout the year, resulting in peaks and valleys. For example, large property tax payments are usually received in December and May. Similarly, Redevelopment Property Tax Trust Fund payments are typically received in January and June. Any timing imbalance of revenue receipts versus expenditures is funded from the City’s cash flow reserve. The expenditure report includes expenditures and transfers out to other funds. Unlike revenues, expenditures are more likely to be consistent from month to month. However, large debt service payments or CIP expenditures can cause swings. Prepared by: Rosemary Hallick, Financial Services Analyst Approved by: Karla Romero, Finance Director Attachment 1: Revenue and Expenditure Report for May 31, 2020 MTD YTD YTD Percent of Budget General Fund 1,486,362$ 40,406,378$ 76.42% All Funds 2,809,275$ 79,368,104$ 46.16% MTD YTD YTD Percent of Budget General Fund 3,208,238$ 43,239,577$ 59.50% Payroll - General Fund* 638,311$ 12,343,874$ 87.05% All Funds 7,307,701$ 96,569,736$ 49.89% May Expenditures May Revenues General Fund Non-General Fund Measure G Sales Tax 361,233$ County Government Revenue -Library/Museum 299,012$ Transient Occupancy (Hotel) Tax 225,481$ County Sales Tax (Measure A) 208,886$ Sales Tax 193,077$ Pension Trust Earnings 195,176$ Franchise Fees- Cable Television 175,551$ Surface Transportation Program Grant 173,623$ Fire Service Credit 101,788$ SilverRock Greens Fees 152,402$ General Fund Non-General Fund Sheriff Contract (February and March) 2,210,345$ Capital Improvement Program (CIP) - Construction (1)2,220,561$ Contract Legal Services 49,896$ Small Business Emergency Economic Relief Program 490,000$ Parks Landscape Maintenance 41,890$ Library Operations 299,012$ Engineering Professional Services 22,081$ SilverRock Maintenance 110,006$ Coronavirus Expenses 21,878$ Homelessness Assistance (Martha's Village) 83,333$ Top Five Revenue/Income Sources for May Top Five Expenditures/Outlays for May (1) CIP Construction: Village Complete Streets, Highway Safety Improvement Program, SilverRock Park, Washington/Fred Waring triple left turn project, pavement management program, Hwy 111 signs, and Cove restroom project. City of La Quinta FINANCIAL ADVISORY COMMISSION MEETING:August 5, 2020 STAFF REPORT AGENDA TITLE: APPOINT A FINANCIAL ADVISORY COMMISSIONER CHAIRPERSON AND VICE-CHAIRPERSON FOR FISCAL YEAR 2020/21 RECOMMENDATION Appoint a Financial Advisory Commissioner Chairperson and Vice-Chairperson to serve for fiscal year 2020/21. EXECUTIVE SUMMARY The August 5, 2020 meeting is the first scheduled meeting of the Financial Advisory Commission (FAC) for 2020/21. Pursuant to La Quinta Code 2.06.050 the FAC, at its first meeting held after June 30, shall vote to elect one of its members as Chairperson and elect another as Vice-Chairperson. FISCAL IMPACT -None. BACKGROUND/ANALYSIS In accordance with La Quinta Code 2.06.050, “unless otherwise provided by law, ordinance or resolution of the city council, each board, commission and committee shall choose one of its members as Chairperson and one as Vice- Chairperson at its first meeting held after June 30th of each year.” Pursuant to this section, staff has placed this item on the agenda for appointment of a Chairperson and a Vice-Chairperson. ALTERNATIVES This action is required by City Code, staff does not recommend an alternative. Prepared by: Jessica Delgado, Management Assistant Approved by: Karla Romero, Finance Director BUSINESS SESSION ITEM NO. 1 POWER POINT FAC MEETING August , 20