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SR 06-27-2017 3A Ci ty Council Report Cit y Council Meeting : June 27, 2017 Agenda Item: 3.A 1 of 2 To: Mayor and City Council From: Gigi Decavalles -Hughes, Director , Finance Department Subject: Amendment to the Resolution Adopting Rules of Conduct for the Audit Subcommittee Recommended Action Staff recommends that the City Council adopt a n amended re solution modifying the Audit Subcommittee Rules of Conduct. Executive Summary On May 9, 2017, Council adopted R esolution No. 11042 adopting Rules of Conduct for the Audit Subc ommittee of the Santa Monica City Council. The Rules required the presence of a ll three Council Committee members for a quorum of the Audit Subcommittee . Staff recommends modifying the rules to define quorum as a majority of members and at least two Council Committee members present for a meeting to occur. The proposed language in t he amended resolution (Attachment A) clarifies rules and provides flexibility in the management of the Audit Subcommittee . Background At its May 9 , 2017 meeting, the City Council adopted Resolution No. 11042 adopting Rules of Conduct for the Audit Subcomm ittee of the City Council . Section 2 of the adopted resolution states that “A majority of Committee Members shall constitute a quorum for the transaction of business, except to adjourn. All three Council Committee members must be present for a meeting to occur.” Discussion A ccording to the current Resolution , all three Council Committee members must be present for a meeting to occur. S taff seeks to modify this language in recognition of scheduling challenges and to ensure Subcommittee business moves for ward in a timely manner . Staff anticipates that this change will continue to allow for an adequate level of Council member participation in the Subcommittee while minimiz ing the need for postponements and cancellations and allowing the Audit Subcommittee to receive 2 of 2 regular reports of findings and provide regular direction to the City’s internal and external auditors. Financial Impacts and Budget Actions There is no immediate financial impact or budget action necessary as a result of the recommended action . Prepared By: Natalie Acosta, Executive Administrative Assistant Approved Forwarded to Council Attachments: A. Resolution REFERENCE:    Amended   Resolution  No. 11046   (CCS)