RESOLUTIO O. 201 2-140

A RESO LUTIO OF THE COUNCIL OF THE CITY OF FRES 0 ,CALIFORN IA, RESOLUTION SUBM ITTI G TO CITY ELECTORS APROPOSAL TO AMEND THE CHARTE R RELATING TO FISCALMANAGEM ENT, BY REQUIRING COUNCIL TO ESTABLISH APOLICY FOR MANAGING RESERV ES, A POLI CY FORMANAGING DEBTS, AND A POLI CY FOR ESTABLISHING A DUEDILIGENCE PRO CESS WHEN THE PRIVATE SECTOR REQUESTSC ITY FINANC IAL ASS ISTANCE THAT EXCEEDS ONE MILLIONDO LLARS, A D PROVIDIN G FOR TI-IE PLACEME r TH EMEASURE ON TI-IE OVEMBER 6, 2012 GE ERAL ELECTIO .

RESOLVED, by the Council of the City of Fresno, California, as follows:

SECTIO 1. The Council, on its own motion, submits to the electors of the City ofFresno at its general municipal election to be conso lidated with the statewide general electionto be held on November 6, 2012, a ballot measure proposing to amend the Charter of the Cityof Fresno as set forth in Exhibit A attached hereto , and incorporated herein by reference.

SECTION 2. The question to be submitted to the electors with respect to the proposedCharter amendments as set forth in Exhibit A shall be printed on the election ballot with thetitle and in the form here inafter set forth:

FISCALMA AGEMENT

Sha ll the Charter be amended to require Council to estab lish: a YESpol icy for managing City reserves; a pol icy for issu ing andmanaging debts with Controller certificat ion on the reliabi lity offunds for debt repayment ; and a policy establishing a duedi ligence process for evaluating requests by the private sectorfor City financial assistance that exceeds one million dollars?

NO

SECTIO 3. The following constitutes the synopsis of the measure to be voted on forthe purpose of meeting the publ ication requ irements of Elections Code Sect ion 12111:

Mpld l--:t Ie -l '2-.

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lof3Resolution Submitting to City Electors a Proposal

to Amend the Charter Relating to Fiscal Management

A measure amending the Charter of the City of Fresno relating to fiscal management, byrequiring Council to establish a policy for managing City reserves, a policy for issuing andmanaging debts with Controller certification on the reliability of funds for debt repayment,and a policy establishing a due diligence process for evaluating requests by the private sectorfor City financial assistance that exceeds one million dollars.

SECTION 4. The City Clerk shall file a certified copy of this resolution with theFresno County Elections Office on or before August 10, 20 I2.

SECTION 5. The Fresno County Clerk/Registrar of Voters shall give the appropriatenotices for the election and shall conduct the election pursuant to appropriate provisions ofstate law.

SECTION 6. The City shall reimburse the County of Fresno for the above mentionedservices performed by the Fresno County Clerk/Registrar of Voters, upon presentation of thebill to the City.

SECTION 7. The City Attorney shall prepare an impartial analysis of the measure inaccordance with Elections Code Section 9280.

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20f3Resolution Submitting to City Electors a Proposal

to Amend the Chaner Relating to Fiscal Management

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STATE OF CALIFORNIA )COUNTY OF FRESNO ) ss.CITY OF FRESN O )

I YVO E SPE CE, City Clerk of the City of Fresno , certify that the foregoing Resolutionwas adopted by the Counci l of the City of Fresno , at a regular meeting held on the 26t h dayof July , 2012.

AYES:NOES:ABSENT:ABSTA IN:

Baines, Bor geas ,Quint er o, XiongWesterlundNone

Brand , Olivier

July 31N/AN/AN/A

APPROVED AS TO FORM:CITY ATTORNEY'S OFFICE

YVONNE SPENCECity Clerk

BY: /'v!o-

Attachment: Exhibit A

TY:cg: 59357cg/RESO]- 07/12/12

30f3Resolution Submittingto City Electors a Proposal

to Amend the Charter Relating to Fiscal Management

July 26, 2012

TO: MAYOR ASHLEY SWEARENG I

FROM: YVONNE SPENCE, CMCCity Clerk

RECEI .1 <E:>~nci l Adoption : 7/26/12MayorApproval:

2JIJI_3 I MilO: 5~ayo~ Veto:'Override Request:

::I TYCLE PK , FRESIi OCI-

SUBJECT: TRANSMITIAL OF COUN L ACTION FOR APPROVAL OR VETO

At the Council meeting of 7/26/12 , Council adopted the attached Resolution No. 2012-140entit led Submitting to City electors a proposal to amend the Charter relating to fiscalmanagement, Item No. General Administration A, by the following vote:

AyesNoesAbsentAbstain

Baines , Borgeas, Brand, Olivier,Quintero , XiongWesterlundNone

Please indicate either your formal approval or veto by completing the following sections andexecuting and dating your action. Please file the completed memo with the Clerk's office onor before August 6,2012. In computing the ten day period required by Charter, the first dayhas been excluded and the tenth day has been included unless the io" day is a Saturday,Sunday, or holiday, in which case it has also been excluded. Failure to file this memo withthe Clerk's office within the required time limit shall constitute approval of the ordinance,resolution or action, and it shall take effect without the Mayor's signed approval.

Thank you.************************************************************

INO RETURN: __

VETOED for the following reasons: (Written objections are required by Charter; attachadditional sheets if necessary.)

COUNCIL OVERRIDE ACTION:AyesNoesAbsentAbstain

Date: _

EXHIB IT "A" TO RESOLUTION __

PROPOSED AMENDMENTS TO CHARTER OF CITY OFFRESNO TO BE SUBMITTED TO CITY ELECTORS AS ABALLOT MEASURE AT THE GENERAL MUNICIPALELECTION TO BE HELD ON NOVEMBER 6, 2012

SECTION 1. Sect ion 1212 of the Charter shall be amended to read:

[Section 1212. UNAPPROPRIATED RESERVE FUND. [POLICY FOR

RESERVE MANAGEMENT. The Council shall establish a speci fic reserve management

policy to contro l future spendi ng, enhance the City's credit rating, and establish reserve

policies to meet the City 's debt obligations. An affirmative vote of at least five members of

the Council shall be required for amendment to the policy.]

The Council shall establish a fund known as the "Unappropriated Reserve Fund" for

the purpose of meeting unforeseen contingencies and emergencies of the City for such

amount as established by the Council. Said fund shall remain intact except by the

affi rmat ive vote of at least five members of the Counc il with a statement declaring the

reason for its use.

SECTION 2. Sect ion 1214 shall be added to the Charter to read:

[Section 1214. POLICY FOR DEBT MANAGEMENT. The Council shall

establish a debt management policy for the purpose of issuing and managing the City's debt

consistent with sound financial management practices. The Controller shall certify prior to

each issuance decision the specific funding source(s) for the repayment of the debt and the

reliability of the funding for the life of the debt. An affirmative vote of at least five

members of the Counci l shall be required to amend the debt management policy, or to

authorize debt other than as a part of the adoption of the annua l budget.]

SECTIO 3. Section 1215 is added to the Charter to read:

[Section 1215. POLICY FOR COMPREHE SIVE REVIEW OF

APPLICATIO S FOR CITY FINANC IAL ASSISTANCE. The Council shall establish

a policy regarding the procedures and scope for conducting a due diligence process for any

proposed project that includes a request for direct or indirect financial assistance, including

extensions(s) or renewals(s) of assistance, but excluding City requests for proposal(s), that

exceeds one million dollars ($1,000.000). The due diligence process shall include any

material financial. legal. business. legislative. and regulatory issues associated with the

proposed project. Any amendments to the policy describing this due diligence process or

approval of a proposed project that requires this due diligence process shall require an

affirmative vote of at least five members of the Council.]

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