To: Honorable Mayor and Members of City Council
From: Steve Potter, City Manager
Prepared By: Liz Habkirk, Assistant City Manager and Julie Lucido, Public Works Director
TITLE:
Title
Measure G Citizen Oversight Committee
LABEL
RECOMMENDED ACTION:
Recommendation
Receive a report on the proposed Measure G Citizen Oversight Committee and provide direction to staff to develop an Ordinance for the Establishment of the Citizen Oversight Committee.
Body
DISCUSSION:
On November 5, 2024, the electorate of the City of Napa passed Measure G approving a new one cent (1 cent) local transactions and use tax (TUT) until such time as it is ended by voters. The approval of Measure G increases the total of the state and local sales tax on purchases in the City from 7.75% to 8.75%. Measure G is anticipated to generate approximately $22 million annually.
On December 10, 2024, City Council approved a resolution declaring the election results and enacting Ordinance O2024-003 to be codified as Napa Municipal Code Chapter 3.14 entitled "Transaction and Use Tax" (identified on the ballot as Measure G). This Ordinance requires a Citizen Oversight Committee to be established to ensure transparency and accountability for the use of the new local sales tax revenue. Section 3.14.150 of the Ordinance is titled Citizen Oversight and states:
“The City Council shall establish a Citizens Oversight Committee (COC) to review and report annually on the receipt and expenditure of revenue from the tax authorized by this chapter. The COC’s report shall confirm that the expenditures are consistent with the priorities approved by the City Council and that no revenues have been siphoned off by the State or other entity or used for the benefit of other than the Napa community. The City Council shall adopt a resolution establishing the terms, composition, and duties of the COC prior to the operative date.”
General considerations for the creation of the new committee should include:
• Establishing provisions for the committee that support effective oversight and transparency for the Measure G revenues and expenditures
• Setting duties consistent with the Ordinance requirements
• Defining requirements for committee composition and meeting frequency
• Considering consistency with Policy Resolution 10 and the operation of other City commissions, committees, and boards
Policy Resolution 10 (attachment 1) generally establishes the procedures by which City commissions, committees, and boards operate. Staff’s recommendation for the City’s new Measure G COC is that the application process, selection process, and committee operations comply with the existing procedures.
The action for today’s discussion is to provide direction to City staff on the composition of the committee, the duties of the committee, and the desired minimum frequency of the committee meetings. Based on the requirements included in the Ordinance O2024-003, a review of tax oversight committees in other jurisdictions and achieving consistency with other City advisory bodies, staff has outlined the following composition and duties for the COC as a starting point for Council’s consideration:
• 5 members appointed to the committee with each a City of Napa resident and registered voter
o 1 member shall have professional experience in accounting or finance, preferably for public agencies
o 2 members shall have professional experience in municipal operations or capital project delivery
• Duties to include:
o Review and report on the annual audit of Measure G revenues and expenditures
o Confirm expenditures are consistent with the priorities approved by City Council, no revenues have been siphoned off by the State or other entities, and no revenues are used for the benefit of other than the Napa community
o Receive presentations regarding projects, initiatives, and city operations funded by Measure G
o Review any financial reports regarding Measure G requested by City Council
• The term of appointed members shall be 2-years
• The COC shall:
o be staffed by the City Manager or their designee
o meet at least twice annually
o hold public meetings and comply with the Brown Act
The recommendation is that the minimum number of meetings be incorporated into the proposed Ordinance and that in practice, additional meetings may be convened with public noticing requirements. Topics that should be included in COC meetings would cover: budget training and refreshers, Brown Act training, Policy No. 10 provisions, State mandated trainings for advisory bodies, development and review of COC bylaws, and presentations on City Council priorities and guiding principles for work.
During today’s meeting staff will outline the elements of the COC composition, duties, and meeting frequency to gather City Council direction and consensus to develop an Ordinance for the establishment of the COC. Staff would return to a subsequent City Council meeting for final review and approval of the new Ordinance.
FINANCIAL IMPACTS:
There is no direct financial impact.
CEQA:
The City Manager has determined that the recommended action described in this agenda report is not subject to CEQA, pursuant to CEQA Guidelines Section 15060(c).
DOCUMENTS ATTACHED:
ATCH 1 - Policy Resolution 10
ATCH 2 - Composition of Advisory Boards
NOTIFICATION:
None.