RPVCCA_CC_SR_2013_08_06_04_FAC_Proposed_2013-14_Work_PlanCITY OF
MEMORANDUM
TO:
·FROM:
DATE:
SUBJECT:
REVIEWED:
HONORABLE MAYOR & CITY COUNCIL MEMBERS
DENNIS McLEAN, DIRECTOR OF FINANCE & ~
INFORMATION TECHNOLOGY
AUGUST 6, 2013
FINANCE ADVISORY COMMITTEE PROPOSED 2013-
14 WORK PLAN
CAROLYN LEHR, CITY MANAGER ~
Project Manager: Kathryn Downs, Deputy Director of Finance & Information
Technology ll{)
RECOMMENDATION
Approve the proposed 2013-14 Work Plan for the Finance Advisory Committee (FAG) (see
Attachment A).
DISCUSSION
The Finance Advisory Committee (FAG) has been appointed to provide citizen input
regarding financial matters of the City. The City Council's fiduciary responsibility cannot be
delegated; and includes review and adoption of financial policies, models and the annual
budget. ·
The City Council allocates significant Staff and budget resources to support its advisory
bodies. To help control the use of these resources and avoid "scope creep", the FAC's
establishing resolution (No. 2008-064, see Attachment B) requires preparation of an
annual work plan to be approved by the City Council. The work plan outlines tasks
assigned, and identifies resources allocated to the advisory body. Advisory bodies do not
direct Staff effort and allocation of resources; as such actions can be in conflict with the
City Council's and City Manager's role in setting priorities.
The proposed 2013-14 Work Plan for the FAC includes the following assignments:
1. Receipt of the Comprehensive Annual Financial Report (CAFR);
2. Review of the draft 2014 Five-Year Financial Model;
3. Study infrastructure financing alternatives; and
4. Continue to study outside impacts to the City's employee pension plan.
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FINANCE ADVISORY COMMITTEE PROPOSED 2013-14 WORK PLAN
August 6, 2013
Page 2 of 2
The estimated Staff time to support the 2013-14 FAC assignments is estimated to be about
93 hours, which is consistent with prior year allocations of Staff resources.
The FAC reviewed the draft 2013-14 Work Plan on July 24, 2013, and approved it by
consensus.
Attachments:
A -Proposed Finance Advisory Committee 2013 Work Plan
. B -Resolution No. 2008-064, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
RANCHO PALOS VERDES ESTABLISHING THE FINANCE ADVISORY COMMITTEE'S
MISSION STATEMENT, SIZE OF MEMBERSHIP AND FREQUENCY OF MEETINGS
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Attachment A
CITY OF RA!iCHO PALOS VERDES
PROPOSED FINANCE ADVISORY COMMITTEE 2013-14 WORK PLAN
Page 1 of 8
MISSION STATEMENT
The Finance Advisory Committee provides citizen input to the City Council and
Staff regarding financial matters of the City of Rancho Palos Verdes. The
Committee shall review short and long-term financial information of the City and
other financial issues as assigned by the City Council. The Committee shall
provide advice regarding economic development matters such as methods to
improve the business climate and how to better work with local businesses and
shall recommend specific areas for review to the City Council. The Committee
will serve to advise the City Council regarding the City's financial condition.
SUMMARY OF SPECIFIC 2013-14 ASSIGNMENTS
1. Receive a presentation of the City's Comprehensive Annual Financial
Report (CAFR) prepared annually, including the audit report;
2. Review and provide comments and recommendations regarding the Five-
Year Financial Model to the City Council;
3. Study infrastructure financing alternatives in conjunction with Staff
development of an Infrastructure Management Plan and make
recommendations to the City Council;
4. Continue to study new financial reporting standards impacting the City's
employee pension plan, as well as changes to pension plan provider
assumptions and methodologies; and
5. In addition to the above specific assignments, the FAC is prepared to
meet on an as-needed basis to review any additional projects assigned to
it by the City Council.
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Attachment A
SUMMARY OF STAFF TIME
A summary of the total Staff time estimated for the assignments outlined in this
2013-14 work plan follows:
Assignment
Study Impacts to Pension Plan
Study Infrastructure Financing
Receiw CAFR Presentation
Review 2014 Fiw-Year Model
Total Staff Time
Potential Staff Support
No. Meeting Date Hours
4 Dec-Jan 14
3 Dec-Feb 53
1 January 2
2 Apr-May 24
93
Note: The Staff time estimated herein is exclusive of the time to prepare work
product for the City Council.
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Attachment A
SPECIFIC 2013-14 ASSIGNMENTS
1. RECEIVE A PRESENTATION OF THE CITY'S COMPREHENSIVE ANNUAL
FINANCIAL REPORT (CAFR) PREPARED ANNUALLY, INCLUDING THE
AUDIT REPORT
The Comprehensive Annual Financial Report (CAFR) is an annual report that
includes the City's audited financial statements, as well as other financial and
statistical information. Receipt of this presentation is an annually recurring item
intended to provide the Committee with relevant financial information.
Staff Responsibilities:
~ Present an oral overview of the CAFR and accompanying staff report to
the Committee and answer Committee Member questions.
Timeline
Staff expects that this presentation will take place during a meeting with another
Work Plan assignment in January 2014.
Staff Time:
Committee Member Advance Q&A
Staff preparation for presentation
Total Staff Time Required
1 hour
1 hour
2 hours
2. REVIEW AND PROVIDE COMMENTS AND RECOMMENDATIONS
REGARDING THE FIVE-YEAR FINANCIAL MODEL TO THE CITY COUNCIL
The Five-Year Financial Model (the "Model") is a financial schedule which is
annually prepared by Staff, as required by City Council Policy No. 18. The Model
includes the proposed budget for the coming fiscal year, as well as estimates of
revenues, expenditures, fund transfers and ending fund balance for all funds of
the City over a five-year time period. The Model is prepared as part of the
budget process for each fiscal year, and is a planning tool used to identify
structural problems in the budget and future fiscal challenges.
Committee Responsibilities:
~ Review and comment on the draft 2014 Model prepared by Staff focusing
on noteworthy changes, trends, and key assumptions; and
~ Provide recommendations to City Council.
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Attachment A
Staff Responsibilities:
~ Prepare the draft 2014 Model with accompanying staff reports explaining
key assumptions and noteworthy changes;
~ Present an oral overview of the draft 2014 Model and accompanying staff
report to the Committee and answer Committee Member questions; and
~ Forward the Committee's comments and recommendations to the City
Council for its consideration prior to adoption of the FY14-15 City budget.
Timeline
Staff expects that review of the draft 2014 Model will take place at two
Committee meetings during April and/or May 2014.
Staff Time:
Staff report preparation for the Committee
Agenda preparation with Chair & distribution
Committee Member Advance Q&A
Staff preparation for presentation
Meeting attendance for 1 staff person
Minute preparation
Total Staff Time Required
6 hours
2 hours
4 hours
4 hours
6 hours
2 hours
24 hours
Note: The Staff Time estimated herein is exclusive of the time to prepare the
Model and Staff Report for City Council.
3. STUDY INFRASTRUCTURE FINANCING ALTERNATIVES IN
CONJUNCTION WITH STAFF DEVELOPMENT OF AN INFRASTRUCTURE
MANAGEMENT PLAN AND MAKE RECOMMENDATIONS TO THE CITY
COUNCIL
The 2012-13 Work Plan included an assignment to "Review the Financing Plan
for the San Ramon Canyon Stabilization Project". On March 6, 2013, the FAC
recommended that a decision about debt financing the San Ramon Canyon
Stabilization project be postponed until after an Infrastructure Management Plan
is underway. On May 7, 2013, the City Council awarded a contract to a
consultant for preparation of an Infrastructure Report Card, which will be used to
develop an Infrastructure Management Plan. On June 1, 2013, the City Council
followed the FAC recommendation by deferring the decision until more
information is available about the condition of the City's infrastructure based
upon completion of the Infrastructure Report Card.
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Attachment A
Once the City's infrastructure needs are identified and prioritized as part of the
planning process noted above, the FAC will study various alternatives of
financing the City's infrastructure; which could include use of City reserves, new
revenue, and/or the issuance of debt.
Committee Responsibilities:
~ Review alternatives for financing the City's infrastructure; and
~ Prepare comments and recommendations to be forwarded to the City
Council.
Staff Responsibilities:
~ Present available alternatives for financing the City's infrastructure, and
answer Committee Member questions; and
~ Forward the Committee's comments and recommendations to the City
Council.
Timeline
Staff expects that study of infrastructure financing alternatives will take place at
three consecutive meetings that may begin as early as the end of calendar year
2013.
Staff Time:
Staff report preparation for the Committee
Agenda preparation with Chair & distribution
Committee Member Advance Q&A
Staff preparation for presentation
Meeting attendance for 2 staff persons
Minute preparation
Prepare Report to City Council
Total Staff Time Required
18 hours
3 hours
3 hours
6 hours
18 hours
3 hours
2 hours
53 hours
4. CONTINUE TO STUDY NEW FINANCIAL REPORTING STANDARDS
IMPACTING THE CITY'S EMPLOYEE PENSION PLAN, AS WELL AS
CHANGES TO PENSION PLAN PROVIDER ASSUMPTIONS AND
METHODOLOGIES
In 2012, the FAC received an assignment from the City Council to study the
alternatives to accurately ascertain the City's unfunded pension liability. The
FAC completed its assignment and issued a Memorandum to the City Council
dated April 25, 2012. The 2012-13 Work Plan included an assignment to update
the FAC Memorandum after study of the 2012 Actuarial Valuation Report. The
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Attachment A
FAC completed its assignment and issued an updated Memorandum to the City
Council dated March 6, 2013.
In light of new financial reporting standards for pension plans and recent changes
in assumptions and methodologies used by the California Public Employees
Retirement System (CalPERS), the FAC will continue to study factors impacting
the City's employee pension plan and provide recommendations to the City
Council as appropriate.
Committee Responsibilities:
);;:-Review the 2013 CalPERS Actuarial Valuation Report; and
);;:-·Update the FAC Memorandum with additional recommendations to the
City Council as appropriate.
Staff Responsibilities:
);;:-Provide a presentation of the 2013 CalPERS Actuarial Valuation Report
and information relevant to this assignment, and answer Committee
Member questions; and
);;:-Forward the Committee's updated Memorandum to the City Council.
Timeline
Staff expects this assignment can be completed during two meetings with other
Work Plan assignments.
Staff Time:
Staff report preparation for the Committee
Committee Member Advance Q&A
Staff preparation for presentation
Prepare Report to City Council
Total Staff Time Required
6 hours
2 hours
4 hours
2 hours
14 hours
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Attachment A
•'4
CrTY OF • RANCHO PALOS VERDES
PROPOSED FINANCE ADVISORY COMMITTEE 2013-14 WORK PLAN
Page 7 of 8
COMMITTEE RESOURCES
Budget
Historically, the City's budget has included an allocation for hiring outside
consultants to assist in researching particular issues. Although this draft work
plan does not include assignments with an apparent need for consulting help,
additional assignments may come from the City Council in the future. Staff
believes the City's budget is adequate to meet the needs of the Committee.
ROLES
City Council
The five-member City Council is the legislative and policy making body for the
City, charged with providing overall leadership by enacting laws and allocating
City resources for programs, services and activities. The City Council appoints
members to serve on this committee and makes special assignments to
research, discuss, and provide comments and recommendations to the Council.
Finance Advisory Committee
Advisory committees are a structured way for individual citizens to share their
opinions and perspectives, and to formulate comments and recommendations in
a focused, small group structure. The primary purpose of advisory committees is
to provide judicious advice, from a citizen perspective, to the City Council.
Committee activities may include the study of critical issues, hearing public
testimony, and reviewing staff reports and recommendations -all of which is
intended so that the committee is prepared to discuss, formulate, and forward
well-developed, thoughtful comments arid recommendations to the City Council
in a timely manner. All appointees to the Committee should act at the direction of
the whole or the majority of the City Council and not upon the request or direction
of an individual member of the Council.
The City Manager has assigned staff liaisons to each Committee to maintain
communication between the Committee, City Council and City Manager. Staff
works under the direction of the City Manager. Reports prepared by Staff are
generally for the ultimate review and action of the City Council subsequent to the
Committee's review and comment. Staff is responsible for the work product that
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Attachment A
the Committee reviews and administration of the Committee's activities including,
but not limited to the following:
• Ensuring that meeting notifications and consistent recordkeeping occurs.
• Serving as a communication link between the Committee, City
administration, departments, and the City Council, as appropriate.
• Providing professional guidance, issue analysis and recommendations.
• Assisting the committee with report preparation, and correspondence in
keeping with the committee's Council-approved work plan.
• Making sure the intent of the advisory committee is not lost after the
Committee acts to make a comment or recommendation, and that it is
conveyed accurately to the City Council in a timely manner.
• Assisting the advisory committee in staying focused on the assignment
and agenda.
• Ensuring compliance of the Committee's actions with the Brown Act.
• Presenting advisory committee comments and recommendations to the
City Council, if requested to do so by either the committee or the City
Council.
• Maintaining a positive working relationship with the Chair and committee
members.
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RESOLUTION NO. 2008-64
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF RANCHO PALOS VERDES ESTABLISHING THE
FINANCE ADVISORY COMMITTEE'S MISSION
STATEMENT, SIZE OF MEMBERSHIP AND FREQUENCY
OF MEETINGS.
Attachment B
WHEREAS, on February 19, 2008, the City Council received the 2008
Organization-Wide Assessment Report from Management Partners, which
prompted the City Council to request Staff and the Finance Advisory ComlT)ittee
to review the Committee's Mission Statement and Work Plan, size of
membership and frequency of meetings for possible adjustments to achieve a
more focused purpose and efficient structure; and,
WHEREAS, on June 12, 2008, the Finance Advisory Committee held a
. meeting and took action to forward its recommendations to the City Council; and,
WHEREAS, on July 1, 2008, the City Council received a presentation from
Staff regarding the Committee's Mission Statement and Work Plan, size of ·
membership and frequency of meetings.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF RANCHO
PALOS VERDES DOES HEREBY FIND, DETERMINE AND RESOLVE AS
FOLLOWS:
Section 1. Mission Statement: The mission of the Finance Advisory
Committee shall be to provide citizen input to the City Council regarding financial
matters of the City of Rancho Palos Verdes. The Committee shall review short
and long-term financial information of the City and other financial issues as
assigned by the City Council. The Committee shall advise on economic
development matters such as methods to improve the business climate and how
to better work with local businesses and shall recommend specific areas for
review to the City Council. The Committee will serve to advise the City Council
regarding the City's financial condition. ·
Section 2. Membership: The Finance Advisory Committee shall consist of
five (5) members.
Section 3. Frequency of Meetings: The Finance Advisory Committee shall
meet on an as needed basis as determined by their annual work plan. They shall
have the ability to cancel any meeting with the consent of the Chair and Staff
liaison.
Section 4. Annual Work Plan: The Finance Advisory Committee and Staff
liaison shall prepare an annual work plan to be presented to the City Council for
approval.
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Attachment B
Section 5: Resolution No. 93-113 is hereby rescinded and replaced by ti1is
Resolution.
Attest:
City Clerk
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss
CITY OF RANCHO PALOS VERDES )
I, Carla Morreale, City Clerk of The City of Rancho Palos Verdes, hereby
certify that the above Resolution No. 2008-64, was duly and regularly passec;l
and adopted by the said City Council at regular meeting thereof held on July ·15,
2008.
~~
City Clerk
Resolution No. 2008-64
Page 2 of 2
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