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CC Ordinance No. 20-2208 Amending City Code Chapter 2.88 Audit Committee Duties-Powers-ResponsibilitiesORDINANCE NO.20-2208 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CUPERTINO AMENDING CITY CODE [CHAPTER 2.88: AUDIT COMMITTEE §100 DUTIES - POWERS -RESPONSIBILITIES The City Council of the City of Cupertino finds that: 1. On February 11, 2020, the City's Audit Committee recommended a proposed amendment to the City's Municipal Code in accordance with the establishment of an internal audit function within the City. The proposed amendment to the Code is an addition to Section 2.88.100 (Audit Committee Duties -Powers - Responsibilities). to include two additional duties: "To recommend appointment of internal auditors and "To review internal audit reports." 2. The City Council of the City of Cupertino held a duly noticed public meeting on July 7, 2020, and after considering all testimony and written, materials provided in connection with that meeting introduced this ordinance and waived the reading thereof. NOW, THEREFORE, THE CITY COUNCIL OF THE OF CITY OF CUPERTINO DOES ORDAIN AS FOLLOWS: SECTION 1. Adoption. The Cupertino Municipal Code Section 2.88.100 (Audit Committee Duties -Powers - Responsibilities) is hereby amended as shown below (additions to existing text show with double underlined bold text). 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; F. To recommend appointment of internal auditors: G. To review internal audit reports. Ordinance No. 20-2208 Page 2 SECTION 2: Severability and Continuity. The City Council declares that each section, sub -section, paragraph, sub -paragraph, sentence, clause and phrase of this ordinance is severable and independent of every other section, sub -section, paragraph, sub -paragraph, sentence, clause and phrase of this ordinance. If any section, sub -section, paragraph, sub -paragraph, sentence, clause or phrase of this ordinance is held invalid, or its application to any person or circumstance, be determined by a court of competent jurisdiction to be unlawful, unenforceable or otherwise void, the City Council declares that it would have adopted the remaining provisions of this ordinance irrespective of such portion, and further declares its express intent that the remaining portions of this ordinance should remain in effect after the invalid portion has been eliminated. To the extent the provisions of this Ordinance are substantially the same as previous provisions of the Cupertino Municipal Code, these provisions shall be construed as continuations of those provisions and not as an amendment to or readoption of the earlier provisions. SECTION 3: California Environmental Quality Act. This Ordinance is not a project under the requirements of the California Quality Act of 1970, together with related State CEQA Guidelines (collectively, "CEQA") because it has no potential for resulting in physical change in the environment, either directly or ultimately. In the event that this Ordinance is found to be a project under CEQA, it is subject to the CEQA exemption contained in CEQA Guidelines section 15061(b)(3) because it can be seen with certainty to have no possibility of a significant effect on the environment. CEQA applies only to projects which have the potential of causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. In this circumstance, the amendments to the City Code would have no or only a de minimis impact on the environment. The foregoing determination is made by the City Council in its independent judgment. SECTION 4: Effective Date. This Ordinance shall take effect thirty days after adoption as provided by Government Code Section 36937. SECTION 5: Publication, The City Clerk shall give notice of adoption. of this Ordinance as required by law. Pursuant to Government Code Section 36933, a summary of this Ordinance may be 8/19/2020 19th