Laguna Niguel Municipal Code Art. 2 Investment, Banking and Audit Committee

(a) The investment, banking and audit committee is hereby established.

(b) The investment, banking and audit committee shall consist of seven members, five of whom shall be residents appointed by the city council, and two of whom shall be members of the city council.

(c) The five resident members shall each be appointed by the city council in accordance with the procedures established for appointing members of the city's commissions, boards and committees.

(d) The two city council members of the committee shall be elected by a majority vote of the full city council.

(e) Alternate members: The city council may appoint up to two alternate members to the committee. Alternate members shall be residents of the city and shall be appointed by the city council in accordance with the procedures established for appointing members of the city's commissions, boards and committees. Alternates may fully participate in committee discussions, but shall not have the right to vote unless designated by the chairperson to replace an absent member of the committee. Alternates are required to attend committee meetings and will be deemed to have vacated his/her position if absent from three consecutive committee meetings.

(Ord. No. 2019-198, § 3, 10-1-19)

The resident and alternate members of the committee shall have substantial education and experience in one or more of the following areas:

(a) Investment banking.

(b) Investment brokerage and sales.

(c) Investment management.

(d) Financial management and planning.

(e) Commercial banking.

(f) Governmental entity or private sector financial auditing.

(g) Governmental entity or private sector accounting.

(h) Other relevant experience.

(Ord. No. 2019-198, § 3, 10-1-19)

(a) The term of office for the resident members of the committee shall be for a period of two years, unless the city council, at the time of the appointment, expressly makes the appointment to a term of one year. The two-year term shall run from January 1 of a particular year to December 31 of the following year. The one-year term shall run from January 1 of a particular year to December 31 of that same year. The city council shall appoint the resident members of the committee for a particular term during the November and December of the preceding year. In the event that there is a delay in the appointment of the resident members of the committee for a particular term, then the resident members appointed for the preceding term shall remain in office until the city council appoints their successors.

(b) The terms of office for the resident members of the committee shall be staggered, to the extent feasible, such that the terms of no more than three resident members terminate at the same time.

(c) The term of office for alternate members of the committee shall be one year.

(Ord. No. 2019-198, § 3, 10-1-19)

(a) The duties and responsibilities of the investment, banking and audit committee shall consist of the following:

(1) Annually review the city's investment policy and recommend revisions, as necessary, to the city council.

(2) Periodically review the city's investment portfolio and the city's investment practices to insure conformance with the city's investment policy.

(3) Periodically review the city's investment portfolio to insure that the city's investments are diversified.

(4) Monitor city staff's practices regarding the handling of the investment portfolio and the making of investments to insure that the internal control and safeguards established by the city's investment policy are being followed.

(5) Advise city staff regarding potential investments and potential investment strategies.

(6) Develop and recommend policies to guide the city's banking relationships.

(7) Monitor the city's banking relationships and advise city staff of potential issues and concerns.

(8) Review the draft request for proposals ("RFP") and proposed selection criteria for auditing services with staff before presentation to the full city council and distribution of the RFP to qualified auditing firms.

(9) Review the draft annual financial report with staff and auditors before presentation to the full city council.

(10) Review the management letter and internal control comments and recommendations with staff and auditors before presentation to the full city council.

(11) Following the end of year audit and CAFR preparation, chairperson shall make presentation to the city council regarding investment, banking and audit related matters.

(12) Review current contracts and/or city vendors for compliance with the Laguna Niguel Municipal Code (LNMC) and the city's administrative policies and procedures, including spending limits, related to procurement and contracting.

(13) Provide input into the city's current purchasing and contracting procedures with respect to the LNMC and the city's administrative policies and procedures, including spending limits, related to procurement and contracting.

(14) Inspect any discrepancies found in the current annual audit with respect to spending in accordance with all contracts and agreements and found to be outside the parameters of the city's administrative policies related to procurement and contracting.

(15) Perform such other related duties that may be requested from time-to-time by the full city council.

(b) The city manager and the finance director are responsible for the day-to-day management of the investment portfolio and the making of specific investments. The committee shall not make or direct city staff to make any particular investment, purchase any particular investment products, or do business with any particular investment companies, brokers or banks.

(Ord. No. 2019-198, § 3, 10-1-19)

The investment, banking and audit committee shall determine when and how frequently to meet. All meetings of the committee shall be held at the City of Laguna Niguel City Hall.

(Ord. No. 2019-198, § 3, 10-1-19)

The committee shall, annually at its first meeting of each calendar year, select one of its members to serve as chairperson of the committee and a second member to serve as vice chairperson of the committee.

(Ord. No. 2019-198, § 3, 10-1-19)

The city manager and the finance director shall provide the necessary staff for the investment, banking and audit committee.

(Ord. No. 2019-198, § 3, 10-1-19)

The investment, banking and audit committee members shall be compensated at the rate of $50.00 per meeting of the committee that they attend. This does not apply to members of the committee that are members of the city council. Alternate members shall be compensated at the rate of $25.00 per meeting of the committee that they attend.

(Ord. No. 2019-198, § 3, 10-1-19)