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
Amendment of the Napa Municipal Code to Add a New Chapter 3.15 entitled “Measure G Citizen Oversight Committee” and the Establishment of the Measure G Citizen Oversight Committee
LABEL
RECOMMENDED ACTION:
Recommendation
Approve the first reading and introduction of an ordinance amending the Napa Municipal Code to add a new chapter 3.15 entitled “Measure G Oversight Committee” and adopt a resolution establishing the Measure G 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 expected to generate approximately $22 million annually.
On December 10, 2024, City Council adopted a resolution certifying the election results thereby enacting voter approved Ordinance O2024-003 to be codified at 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.”
During the Regular Meeting of the City Council held on January 7, 2024, City Council directed staff to develop an ordinance to amend the Napa Municipal Code to add a new section establishing the Measure G Oversight Committee. Staff was also directed to prepare a resolution for the establishment of the Measure G Oversight Committee in accordance with requirements of Section 3.14.150 of the Napa Municipal Code.
City Council direction also specified the composition of the committee including the number and qualifications of members, committee duties, minimum meeting frequency, terms, and staffing of the committee. These have been incorporated into the proposed ordinance and resolution.
A summary of the direction for the establishment of the Measure G Citizen Oversight Committee includes:
• Composition/Members:
o 5 members, each a City of Napa resident and registered voter
o At least 1 member with professional experience in accounting or finance, preferably for public agencies
o At least 1 member with professional experience in municipal operations or capital project delivery
o Staffed by the City Manager’s Office
o 2-year terms (per City of Napa Policy Resolution 10) with the initial appointment of 2 to 3 members to 3-year terms to stagger expirations
• Duties:
o Review and report on the financial audits of the Measure G retail transactions and use tax revenues and expenditures
o Confirm expenditures are consistent with priorities approved by the 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 the Measure G retail transactions and use tax
o Review financial reports regarding the Measure G retail transactions and use tax requested by City Council
o Make recommendations to the City Council on matters referred to the Committee by the City Council
• Meetings:
o Meetings to be held at least twice annually
o Meetings are public and noticed in compliance with the Brown Act (per City of Napa Policy Resolution 10 and state law)
o Committee may establish its own by-laws consistent with City Council resolutions and ordinances
The approval of the proposed resolution will be effective immediately and will establish the Measure G Citizen Oversight Committee in compliance with Chapter 3.14 of the Napa Municipal Code.
The proposed Ordinance requires introduction and first reading at today’s meeting, and adoption and second reading scheduled for February 18, 2024, with the Ordinance to become effective 30 days thereafter. The Ordinance will reaffirm the establishment of the Measure G Citizen Oversight Committee and is the mechanism to include the Citizen Oversight Committee in the Napa Municipal Code, consistent with other advisory bodies to the City Council.
Following the effective date of the Ordinance, the City will open an application period and solicit applications from residents interested in serving on the Measure G Citizen Oversight Committee. Staff anticipates returning to the Council for selection of committee members in May.
FINANCIAL IMPACTS:
There are no direct costs related to the adoption of the proposed Ordinance.
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 - Ordinance
ATCH 2 - Resolution
NOTIFICATION:
Legal notice of the public hearing was published in the Napa Valley Register on January 25, 2025