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HomeMy WebLinkAboutcc min 2008/05/01 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA May 1,2008 6:30 p.m. An Adjourned Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:33 p.m. in the Chula Vista Council Chambers, located at 276 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers Castaneda, McCann, Ramirez, Rindone, and Mayor Cox ABSENT: None ALSO PRESENT: City Manager Garcia, City Attorney Moore, Interim City Clerk Norris, and Deputy City Clerk Bennett PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE PUBLIC COMMENTS There were none. ACTION ITEMS 1. REPORT ON AUDITING STANDARDS AND SELECTION OF AUDIT COMMITTEE Report by Kathryn Beseau of Moreland and Associates on the new standard associated with auditor communications recently published by the Auditing Standards Board. Statement on Auditing Standards No. 114 establishes a requirement for the auditor of financial statements to communicate certain significant matters related to the audit to those charged with governance. Staff recommendation: Council appoint two Councilmembers to serve on an audit subcommittee for the purpose of communicating with the City's auditors regarding the Fiscal Year 2007/2008 audit, throughout the duration of that audit. Kathryn Beseau, representing Macia Gini & O'Connell, LLP (formerly Moreland and Associates), presented the Statement on Auditing Standards No. 114. She then suggested that the Council establish an Audit Subcommittee comprised of members of the Council to oversee the functions of the audit process. Discussion ensued between the Councilmembers about formation of an Audit Subcommittee. Page 1 - Council Minutes May 1, 2008 ACTION ITEMS (Continued) Mayor Cox suggested that once the Audit Subcommittee was established, that staff maintain a record of minutes of all of the subcommittee meetings. Councilmember Ramirez suggested that staff provide the Council with information about procedures undertaken by other cities in the region with respect to the formation of Audit Subcommittees. Mayor Cox suggested that should the Council accept a two-member Audit Subcommittee, that the subcommittee discuss a protocol for procedures, and provide suggestions to the Council as an information item. Deputy Mayor Rindone suggested reviewing the Metropolitan Transit System's (MTS) Letter of Intent, which covered procedures for formation of the MTS Audit Subcommittee. Councilmember McCann moved to form an Audit Committee and nominated Mayor Cox and Councilmember Ramirez to serve as members of the City of Chula Vista Audit Subcommittee. Deputy Mayor Rindone seconded the motion. Councilmember Castaneda stated he would like to amend the motion, or to seek agreement by the Council, that the Audit Subcommittee be advisory only, to gather information, set a framework, and to bring the information back to the Council for final recommendation. ACTION: Councilmember Ramirez stated that the Audit Subcommittee meetings would need to be public meetings in order for him to consider serving as a member. Councilmember McCann called for the vote. Mayor Cox clarified, and the Council concurred, that the motion was to nominate Mayor Cox and Councilmember Ramirez to be members of the Audit Subcommittee, and that the Audit Subcommittee bring back to the Council, a template of how they plan to work, so that in the event that was unacceptable to the Council, the Council would discuss remedies. The motion carried 5-0. Ms. Beseau suggested a planning meeting with the Audit Subcommittee on May 5, 2008 at 2:30 p.m. in the finance conference room. Mayor Cox suggested that staff advise the subcommittee about the frequency of the meetings and associated time constraints. City Manager Garcia requested that the Audit Subcommittee consider expenses associated with meeting with the consultant, and suggested using conference calls as much as possible. 2. REPORT ON POST EMPLOYMENT BENEFITS OTHER THAN PENSIONS AND THE GOVERNMENTAL ACCOUNTING STANDARDS BOARD STATEMENT NO. 45 Report by the City's actuary, John Bartel of Bartel and Associates regarding Statement 45, "Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions," issued by the Govemmental Accounting Standards Board (GAS B) in June 2004, which requires public agencies to report their costs and obligations pertaining to health and other benefits of current and future retired employees much like Page 2 - Council Minutes May 1, 2008 . ~ ACTION ITEMS (Continued) they now report pension plan obligations. This is a significant change in accounting, reporting and disclosure for OPEBs, which are currently accounted for on a pay-as-you- go basis. The most common types of post-employment benefits include health care insurance, life insurance, long-term care and dental insurance for retirees. (Finance Director) Staff recommendation: Council accept the report. Finance Director Kachadoorian introduced John Bartel, representing Bartel and Associates, who presented the "Governmental Accounting Standards Board Statement 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions". City Manager Garcia stated that staffs recommendation would be to add no new employees to the Post-Employment Benefits program after July 1,2008, and that staff would be coming back to the Council in the future with other options for the new employees. Councilmember Castaneda suggested that staff work with the City's health care providers to look at ways of reducing liability and premium costs to the City by incentivizing preventative health care and reducing healthcare costs. He requested a report from staff to include all available options. Councilmember Ramirez concurred with the comments by Councilmember Castaneda to look at a range of options. Mayor Cox also suggested that staff provide information to the Council about current healthcare related practices by other cities. ACTION: Councilmember McCann moved to accept the report. Councilmember Ramirez seconded the motion and it carried 5-0. Mayor Cox requested that staff forward to the Council, copies of the slide presentation regarding the post employment benefits. 3. REPORT ON THE PROPOSED CAPITAL IMPROVEMENTS PROGRAM BUDGET FOR FISCAL YEAR 2008/2009 The annual Capital Improvement Program budget (CIP) is typically adopted as part of the City's overall budget. The proposed Fiscal Year 2008/2009 CIP budget is $10,550,975. (Engineering and General Services Director) Staff recommendation: Council accept the report. Engineering and General Services Director Griffin presented the proposed capital improvement program for Fiscal Year 2008/2009. Councilmember Ramirez clarified that the meter revenue generated was being spent within the parking district and requested for the future, that staff provide an accounting of revenues generated and the deposit of funds back to the parking district account. Deputy Mayor Rindone requested a written update from staff on the SDG&E undergrounding projects on L Street and Fourth A venue. No formal action was taken by the Council on this item. Page 3 - Council Minutes May 1,2008 4. CITY MANAGER'S REPORTS There were none. 5. MAYOR'S REPORTS There were none. 6. COUNCIL COMMENTS There were none. ADJOURNMENT At 8:19 p.m. Mayor Cox adjourned the meeting to the Regular Meeting of May 6, 2008 at 4:00 p.m. in the Council Chambers. ~ Lorraine Bennett, CMC, Deputy City Clerk ~ ~ -----' Page 4 - Council Minutes May 1,2008