Ordinance No. 1679~ o
ORDINANCE NO. 1679
AN ORDNANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO
ADDING CHAPTER 2.88 TO THE CUPERTINO MUNICIPAL CODE TO
ESTABLISH AN AUDIT COMMITTEE
THE C[TY COUNCIL OF THE CITY OF CUPERTINO ORDAINS AS
FOLLOWS:
SECTION I -AMENDMENTS
Chapter 2.88 is to be entitled "Audit Committee", and sections are hereby enacted
to be numbered, entitled and to read as follows:
Section 2.88.010 Established-Composition
The Audit Committee of the city is hereby established. The Audit Committee
shalt consist of five members as follows:
Two City Council members,
Two stafl'members,
Representative from a Cupertino business.
The representative from a Cupertino business shall not be an official or employee
of the city, nor cohabit with, as defined by law, nor be related by blood or marriage to any
member of the committee, the City Manager or the staff person(s) assigned to this
committee.
Section 2.88.020 Members-Residency-Selection
An Audit Committee member who is a representative of a business is not required
to be a Cupertino resident, but the business represented must be located in Cupertino.
In selection of Cupertino business members, the City Council may give priority to
inviduals who hav experience in reviewing financial information, understand internal
controls, or are familiar with audit techniques.
Section 2.88.030 Terms of office.
A. Audit Committee members serve at the pleasure of the City Council. The
term of office of the members of the Audit Committee shall be for four years
commencing on the date of their respective appointments to the Audit Committee and
shall end on January 15 of the year the terms are due to expire. No Audit Committee
ORDINANCE N0. ~) •
PAGE2
member shall serve more than two consecutive terms unless he or she has been appointed
to the committee to fill an unexpired term of less than two years.
B. The appointment, reappointment and rules governing incumbent members
of the Audit Committee are governed by Resolution No. 8828 of the Cupertino City
Council.
Section 2.88.040 Members-Vacancy prior to expiration of a term.
If a vacancy occurs other than by expiration of a term, it shall be filled by the City
Council's appointment for the unexpired portion of the term.
Section 2.88.050 Chairperson.
The committee shall elect its chairperson and vice chairperson from among its
members and shall appoint a secretary. Terms of the chairperson and vice chairperson
shall be for one year and shall begin on January 15. Upon approval of the City Council,
the City Manager may appoint a secretary who need not be a member of the committee.
Section 2.88.060 Meetings.
A. The Audit Committee shall establish a regular time and place of meeting
and rules of conduct thereof and shall hold at least one regular meeting quarterly.
B. A majority of the Audit Committee shall constitute a quorum for the
purpose of transacting the business of the committee.
Section 2.88.070 Compensation-Expenses.
Members shall serve on the Audit Committee without compensation, but all
necessary expenses reasonably incurred by them while acting in their official capacity
shall be paid by appropriate action of the City Council.
Section 2.88.080 Majority vote required.
A majority vote of the quorum is required to approve a recommendation on any
matter that is presented to the committee which requires a vote.
Section 2.88.090 Records.
The committee shall keep an accurate record of its proceedings and transactions
and shall render such reports to the City Council and Planning Commission as may be
required.
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Section 2.88.100 Duties-Powers-Responsibilities.
The powers and functions of the Audit Committee shall be as follows:
A. To review the annual audit report and management letter.
B. To recommend appointment of auditors.
C. To review the Monthly Treasurer's Report.
D. To recommend a budget format.
E. To review city investment policies and internal controls of such policies.
Section 2.88.110 City staff assistance.
The Audit Committee shall have available to it such assistance of city staff as may
be required to perform its functions, the staff assignments and administrative procedures
to be under the general direction and supervision of the Director of Administrative
Services.
Section 2.88.120 Procedural rules.
The Audit Committee may adopt from time to time such rules of procedure as it
may deem necessary to properly exercise its powers and duties. Such rules shall be
subject to approval by the Council before becoming effective. All such rules shall be
kept on file with the chairperson of the Audit Committee, the Mayor, and the City Clerk
and a copy thereof shall be famished to any person upon request.
Section 2.88.130 Effect.
Nothing in this chapter shall be construed as restricting or curtailing any powers
of the City Council or city officers.
SECTION II -PUBLICATION
The City Clerk shall cause this ordinance to be published at least once in a
newspaper of general circulation published and circulated in the city within fifteen (IS)
days after its passage, in accordance with Section 36933 of the Government Code; shall
certify to the adoption of this ordinance and shall cause this ordinance and her
certification, together with proof of publication, to be entered in the Cupertino Municipal
Code.
ORDINANCE NO. I~J
PAGE 4
INTRODUCED at a regular meeting of the City Council of the City of Cupertino
this 6th day of February , 1995, and ENACTED at a regular meeting of the
City Council of the City of Cupertino this 21st day of February , 1995, by
the following vote:
yqj~: Members of the City Council
AYES: Bautista, Burnett, Koppel. Sorensen, Dean
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
~ ~~
APPR VED:
Mayor, ity upettino
STATE OP CALIFORNIA
COUNTY OF SANTA CLARA j
CITY OF CUPERTINO )
I, KIMBERLY SMITH, City Clerk and ex-officio Clerk of the City Council of the City
of Cupertino, Califomia, do hereby certify the attached to be a full, true, and correct copy of
Ordinance No. i~ 79 enacted on c J.-t.~, -~ ;i_ ~~ iyo,-
IN WITNESS WHEREOF, I have hereunto set my hand and seal'thisl ~'r,a7 day of
t~
KIMBERLY S ITH; City Clerk and
ex-officio Cletk`pfithe City Council of
the City of Cupertino, California