HomeMy WebLinkAboutFC_2009-08-24_Minutes
Finance Committee
Notes
Monday, August 24, 2009
9:00 a.m.
Atascadero City Hall
6907 El Camino Real, Atascadero, California
Members Present:
Mayor Ellen Béraud, Mayor Pro Tem Roberta Fonzi, City Manager Wade McKinney,
Administrative Services Director Rachelle Rickard.
Members Absent:
City Treasurer Joe Modica
Staff Present:
Deputy Administrative Services Director Jeri Rangel
Administrative Assistant Victoria Randall
Call to order: 9:02 a.m. by Mayor Béraud.
Public Comment:
None.
Mayor Béraud closed the Public Comment period.
Business:
1. City of Atascadero Purchasing Policy – Revisions
Administrative Services Director Rickard reviewed changes to the City’s Purchasing Policy.
She explained that the local vendor preference was increased from 2% to 5% in this revision;
other changes were minor and basically clarified procedures. Mayor Pro Tem Fonzi asked
that preference for local vendors for professional services, when feasible, also be reflected in
the policy.
Ms. Rickard explained that regular meetings are held with Department Heads to review their
budget and monitor expenditures. This communication ensures compliance with City policy
and prudent spending.
Public Comment:
David Bentz said it is important to interject competition into the purchasing policy and said the
lowest responsible bidder award should not rely on price alone, but also on who is able to
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deliver the project. He suggested the City set up a centralized store inventory, as well as a
cooperative purchasing arrangement with surrounding cities to access better pricing. Mr.
Bentz suggested that the City needs someone who can ensure prudence in all purchase
decisions, adding that he did not think the purchasing policy is strictly adhered to in all cases.
Mayor Béraud invited Mr. Bentz to contact City Manager McKinney or Administrative Services
Director Rickard with any concerns.
Mayor Béraud closed Public Comment.
2. City of Atascadero Investment Policy – Revisions
Ms. Rickard stated that the City has been preparing monthly investment reports for the
Council, but is requesting approval for quarterly reports instead. Reconciliations would
continue to be done monthly, and staff would notify the Council of any significant issues,
should they occur. She explained that City Treasurer Joe Modica works with brokers and
dealers to shop for investments and get the best deal. He also reviews all monthly
statements.
Mayor Pro Tem Fonzi suggested money market funds be considered in lieu of normal
checking accounts, since FDIC insures them for $250,000.
Ms. Rickard discussed the Local Agency Investment Fund (LAIF), a statewide fund into which
local agencies can make deposits for short-term use. She stated that LAIF is state-protected
and funds are liquid. Ms. Fonzi requested additional information on LAIF; Ms. Rickard will
follow up.
Ms. Rickard explained that City investments are limited to those allowed by the Government
Code. The City avoids risky investments, using only CDs and government securities.
Public Comment
David Bentz shared his experiences as Administrative Services Director at San Juan
Capistrano. He concurred that LAIF is very safe, but stated that could change. Mr. Bentz
said the City should prepare monthly investment reports instead of quarterly so that the
Council can provide a check-and-balance for the City Treasurer.
Mayor Béraud closed Public Comment.
Mayor Pro Tem Fonzi stated she shared the concerns expressed by Mr. Bentz and opposed
quarterly investment reports. Mayor Béraud stated she supports staff’s recommendation for
quarterly reports and asked that this matter be brought before the City Council for a decision.
Public Comment
David Bentz requested that the City Treasurer explain the investment reports in a monthly,
public meeting of the Council.
Mayor Béraud closed Public Comment.
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Ms. Rickard explained the staffing impacts associated with frequent reporting cycles. City
Manager McKinney said that staff could investigate reporting options, and he suggested that
further discussion on the investment policy be arranged in October.
Mayor Béraud and Mayor Pro Tem Fonzi approved the Purchasing P olicy, but withheld
approval on the Investment Policy until more information can be obtained.
3. General Financial Update
Ms. Rickard provided a general update on the City budget and impacts imposed by the State.
She stated that repayment of the $700,000 Prop 1A take may present an opportunity for the
City, as the State is currently considering 6% interest on the payback. Due to the economic
uncertainty, the City is maintaining a conservative approach on vacant and chilled positions.
Sales tax and property tax figures are not yet finalized. The City’s conservative approach will
allow us to deal with more economic challenges, should they occur.
City Manager McKinney explained changes in coverage at City Hall due to staff reductions
adding that staff is considering a modification of the hours City Hall is open to the public in an
effort to mitigate some of the staffing challenges.
Ms. Rickard discussed the impacts of gas prices, stating that gas taxes are still an unknown.
The City continues to maintain a balance of providing optimal services to the community
within the constraints of existing resources.
Ms. Rickard stated that even with the $1.3 million and $275,000 takes, the RDA will survive,
although projects must be postponed. She added that staff will be working with experts to
determine the City’s bond strategy. In addition, SLESF and Motor Vehicle In-Lieu fees may
both be targeted by the State, but the City is in a position to adjust.
Public Comment:
David Bentz suggested the City do competitive bids for bonds and stated that if CRA wins its
lawsuit, that could impact the bonds. He added that the City might consider borrowing from
the Low-Income Housing Fund to address the takes. Mr. Bentz offered to help locate
software that can run City reports.
Adjournment
Mayor Béraud adjourned the meeting at 10:56 a.m.