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06-27-16 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CIT'Y OF ROLLING AILLS, CALIFORNTA MONDAY,JUNE 27,2016 CALL TO ORDER An adjourned regular meeting o£the City Council of the City of Rolling Hills was calIed to order by Mayor Dieringer at 7:00 p.m. in the City Counci� Chamber at City Hall, 2 Portuguese Bend Road, Rolling Hiils, Caiifornia. ROLL CALL Councilmembers Present: Black,Mirsch, Pieper, Wilson and Mayor Dieringer. Councilrnernbers Absent: None. Others Present: Raymond R. Cruz, City Manager. Mike Jenkins, City Attomey. Heidi Luce, City Clerk. Terry Shea, Finance Duector. Bryan Giuber, LSL CPA's. Laura Walters,Los Angeles County Fire Dept. OPEN AGENDA-PUBLIC COMMENT WELCOME None CONSENT CALENDAR Matters which may be acted upon by the City Council in a single motion. Any Councilmember may request removal of any item from the Consent CaIendar causing it to be considered under Council Actions. A. Minutes -Regular Meeting of June 23, 2Q16. RECOMMENDATION: Approve as presented, B. Paymez�.t of Bills. RECOMIVIENDATION: Approve as presented. C. Financial Statement for the Mont11 of May, 2016. RECOMIVVI�NDAT'ION: Approve as presented. D. Allied Recycling Tonnage Report for May,2016. RECOMIVVI�NDATION: Receive and f le. E. RES�LUTION NO. 11 SG - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ROLLING HILLS FIXING THE DAY, HOUR AND LOCATION OF REGULAR CITY COUNCIL METTINGS, ESTABLISHING AN ALTERNATE LOCATION FOR CITY COUNCIL MEETINGS AND RESCINDING RESOLUTiONS NO. 22 ,AND 465. RECONIlI�NDA�'ION: Adopt as presented. Mayor Pro Tern Black moved that the City Council approve the items on the consent calendar as presented. Co�xncilmember Pieper seconded the motion,which carr.ied without ob�ection. CONIMISSI�N ITEMS None. PUBLIC HEARINGS None. OLD BUSINESS None. -1- NEW BUSINESS CONSIDERATION OF A THREE-YEAR PROFESSIONAL SERVICES AGREEMENT WITH LANCE, SOLL &LUNGHARD, LLC FOR ANNiJAL AUDIT SERVICES. Mayor Dieringer introduced the item and asked for staffls camments. Finance Director Shea presented the staff repart recommending that the City Council award a three-year professianal services agreement for annual audit services to Lance, So�l, Lunghard, LLC (LSL}. He reviewed the RFP process stating that a total of six praposals were received. He stated that staff reviewed the proposals and three firms were selected for interviews with the Finance, Budget, Audit Committee based on their qualifications and price. He stated that all three firms interviewed well and staff selected LSL based on the fact that their proposal was for the lowest cost. He ret�iewed LSL's qualifications stating that the firm currently audits over 60 cites and several special districts; and they have provided good service over the last six years that they have conducted the City's annual audit. In response to Councilmember Wilson, Finance Director Shea explained the single audit process. Councilmember Wilson also asked about the embezzlement situation that arose in �the City of Placentia, which is one of the cities for which LSL provides audit services. Bryan Gruber, Lance, Soll, Lunghard addressed the City Council in response to Councilmernber Wilsan's question regarding the City of Placentia, He explained that LSL began its contract with the City of Placentia this past year and stated that the City had an accounting manager that began embezziing funds fram the City. He stated that from an audit perspective LSL met its obligations and further explained the financial statement audit process. He stated that the individual in Placentia embezzled funds from City via wire transfers through multiple tiers of hiding and altering informatian; and there was clear intent to cover those transactions up. Councilrnember Wilson expressed concern that a similar situation could happen in Rolling Hills. Discussion ensued concerning the policies and procedures that are in place to prevent such an accurrence in Rolling Hills. Further discussion ens�xed concerning the City's process for wire transfers and ACH transfers. City Manager Cruz stated that to help maintain transparency, the �inance, Budget, Audit Committee will be involved in the audit process. Mayor Pro Tem Black comrnented that during the interviews, he asked these same quesfions and he feels com�ortable that LSL performed the audit correctly and this fraud was not identified because of the way the records were falsified. Following discussion, Councilmember Mirsch mo�ed that the City Council approve and autl�orize the City Manager to �xecute a three-year professionaZ services agreement with Lance, Soll, Lunghard, LLC for annual a�dit services. Councilrnernber Wilson seconded the motion,which carried without ob�ection. With regard to the concern raised regarding potential fraud against the City, staff was further directed ta add wire transfers to the list of checks presented to the City Council at each City Council meeting; and to schedule a meeting with the FinanceBudget/Audit Co�nmittee and the audit firm prior to beginning �he next audit to discuss areas of concern or areas that should be considered in the next audit. CONSIDERATION OF AMENDMENTS TO THE FY 2015-17 BUDGET CONCERNING CITY COUNCIL TRAVEL AND SUPPLEMENTAL TRAFFIC ENFORCEMENT. Mayor Dieringer introduced the i�em and asked for stafPs comments. City Manager Cruz stated that the FY 16-17 budget was adopted in June and at #hat time, staff was directed to return with additianal information regarding two potential budge� adjustrnents relating to City Council conference/travel and supplemental traffic enfarcement. He stated that if the City Cauncil wishes to increase funding for either item, such an adjustment could be accomplished by using funds from the contingency account or through a reduction in another budget line item. � Discussion ensued concerning the item related to increasing the budget for City Council conference/travel expenses and whether or not there is value in expending funds in that area. Councilmember Mirsch commented that in some instances there is value in the conferences, specifically for new Councilmembers, but conferences should be evaluated based on the relevancy of the topics being presented. Councilmember Wilson concurred. Mayor Dieringer commented that she finds great value in attending these conferences to learn abont potential issues tliat may impact the City and takes her own personal vacation time to attend. Further discussion ensued concerning historical spending for City Cauncil conference/travel expenses. Councilmernber Mirsch suggested that the conference/travel amount be left as budgeted and if a Minutes City Council Meeting 06-27-16 -2- conference arises that would be beneficial, then it could be adjusted later on an individual basis i� necessary. Fo�lowing further discussion, the City Council decided to Ieave the it�m as orzginally budgeted with the understanding that it may be amended if a con�erence arises that would be beneficial based on the releva�nce of the agenda topics. Discussion then ensued concerning the item related to increasing the budget for suppXemental traffic enforcement. City Mana.ger Cruz stated that this item is before the City Council as a recommendation fram the Traffic Commission that the hours for supplemental traffic enforcement be increased back to 350 hours. Counci7member Wilson commented that in addition to the goal of increasing traffic safety, additional patrol cars in th� City can also serve as a deterrent to crime as we�l as address other issues that arise. He fiu�her commented that the Traffic Commission regularly hears cornpXaints from residents regarding speeding on Crest Road and Portuguese Bend Road as well as other traffic safety concerns. He stated that he bElieves that having additionai dedicated hours from the Sheriffs Dept. is valuable in addressing public safety. Discussion ensued concerning the hours of pa�rol that the City receives from the Sheriff's Dept. as part of�the regular contract and whether or not there is value in add;ing additional hours for supplemental traffic enforcement. Further discussion ensued concerning options for ways that supplemental traff c enforcement hours can be deployed and the best ways to incz�ease traffic safety. Mayor Pro Tem B1ack commented that he is not opposed to increasing the hours, but there should be a way to correlate the increased expense for supplemental traffic enforcement with increased traffic safety. Further discussion ensued concerning other ways for inc�reasing traffic safety including mobife speed boards and decoy cars. Following discussion, no action was taken on either budget adjustment. Staff was directed to schedule further consideration of the budget amendment for supplemental traffic enforcement and to provide additional information ta quantify the benefit of additional enforcement, as well ask the Sheriff's Dept. to be present at the meeting. MATTERS FROM THE C�TY CDUNCIL AND MEETING ATTENDANCE REPORTS DISCUSSION CONCERNING THE PROGRESS OF THE CITY COUNCIL TREES AND VIEWS AD HOC COMMITTEE. (ORAL REPORT) Councilmember Pieper reported that the ad hoc committee met again wiYh Richard Colyear and Lynn Gill on June 23rd and they reached an impasse. The Committee provided a brief overview of the discussion and stated that the ad hoc committee would like to continue to meet to discuss the matter and further report back to the City Council. ADDITTONAL MATTERS FROM THE CITY COUNCIL Mayor Die�ringer provided an update on the issue regarding water budgets and stated they she and City Manager Cruz are still working to get the issues addressed. At the request of several residents,Mayor Pro Tem Btack provided a brief summary of pending iegislation that would eliminate anesthesiolagists from the VA System and repIace them with Nurse Anesthetists and stated that the residents requested that the City submit a letter in opposition to this change. The Ciry Council asked Mayor Pro Tem BIack to have the concerned residents provide a sample letter regarding this matter for further consideration. MATTERS FROM STAFF City Clerk Luce reported that the proposed dates in July and August don't work far everyone for the joint meeting between the City Council and Planning Commission so staff wi�l be laoking at pzopased dates in September and October. PUBLIC COMMENT 4N CLOSED SESSI4N ITEM5 None. CLOSED SESSION None. Minutes City Council Meeting 06-27-16 _3_ RETURN TO OPEN SESS�UN None. ADJOURNMENT Hearing no further 6usiness before the City Council, Mayor Dieringer adjourned the meeting at 8:58 p.m. to the next regular meeting of the City Council scheduled to be held on Monday, July 11, 2016 beginning at 7:00 p.m. in the City Council Chamber at City Hall, 2 Porluguese Bend Road,Rolling Hills, California. Respectfully submitted, Heidi Luce City Clerk Approved, . � ea Dieringer Mayor Minutes City Council Meeting 06-2�-is -4-