HomeMy WebLinkAboutCC 2025-03-11_09g Citizens' Sales Tax Oversight Committee and BylawsItem 9.g.
MEMORANDUM
TO: City Council
FROM: Matthew Downing, City Manager
Bill Robeson, Assistant City Manager/Director of Public Works
BY: Jessica Matson, Director of Legislative & Information Services/
City Clerk
SUBJECT: Establishment of a Citizens’ Sales Tax Oversight Committee and
Adoption of Committee Bylaws
DATE: March 11, 2025
RECOMMENDATION:
1) Adopt a Resolution establishing a Citizens’ Sales Tax Oversight Committee for the
oversight of Measure E-24 funds and adopting Committee Bylaws; and
2) Determine that adopting a Resolution establishing a Citizens’ Sales Tax Oversight
Committee and adopting Committee Bylaws is not a project subject to the California
Environmental Quality Act (“CEQA”) because it has no potential to result in either a direct,
or reasonably foreseeable indirect, physical change in the environment. (State CEQA
Guidelines, §§ 15060 (c)(2) and (3), 15378.).
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
There are no immediate fiscal impacts associated with the creation of a Citizens’
Oversight Committee. Personnel impacts include time spent administering the
Committee.
BACKGROUND:
In November 2024, voters in the City of Arroyo Grande approved Transactions and
Use/Sales Tax Measure E-24 (E-24)1 that increased the local sales tax rate in Arroyo
Grande by one percent to 8.75%. Arroyo Grande voters passed Measure E-24 to
generate revenue to fund many of the key priorities of the community and the City Council.
The measure is estimated to generate approximately $6 million annually.
As part of the City’s commitment to transparency and accountability, E -24 included
language regarding citizen oversight. Although not required by the language of the
1 https://www.arroyogrande.org/813/Measure-E-24-Sales-Tax
Page 97 of 456
Item 9.g.
City Council
Establishment of a Citizens’ Sales Tax Oversight Committee and Adoption of
Committee Bylaws
March 11, 2025
Page 2
Measure itself, a Citizen Sales Tax Oversight Committee (CSTOC, or Committee) is one
approach by which oversight can be accomplished. The CSTOC will review the annual
reports of E-24 and advise and provide feedback regarding the allocation of E -24 funds.
The Annual Report will highlight how funds will be spent and include metrics and a
narrative on what the funds were used for and what was accomplished with the funds.
After reviewing the annual report and audit, the CSTOC will report their findings to the
City Council.
ANALYSIS OF ISSUES:
At their February 25, 20252 regular meeting, the City Council directed staff to initiate steps
towards creation of a CSTOC and publish a notice seeking applications for the
Committee.
Role and Purpose of a Citizen Oversight Committee
The CSTOC will serve as a key advisory body to the City Council on the allocation and
use of E-24 funds. The CSTOC will be responsible for:
Reviewing the use of E-24 revenue for key community priorities;
Providing feedback to inform City Council direction on funding by E-24; and
Facilitating public input and engagement regarding the expenditure of funds.
Committee Composition
The creation of the CSTOC is fully subject to local control. Staff recommends the CSTOC
consist of 5 members appointed by the City Council based on their knowledge,
experience, and interest in the City’s fiscal health.
Committee Term and Meetings
It is recommended that the CSTOC serve a term coinciding with their appointing Council
Member, consistent with that of other City advisory bodies. Members have the possibility
of reappointment for additional terms. Meetings will be held as needed, at least once
annually, to address key issues related to E-24 funds. The CSTOC will operate in a
transparent manner, with meetings open to the public, and all agendas and minutes
posted on the City’s website in accordance with the Brown Act.
Recruitment and Appointment Process
Following Council direction, staff published a notice seeking applications for Committee
Members on February 28, 2025. The Notice was widely publicized through various City
communications channels and applications are currently being received. Applications will
be forwarded to each member of the City Council for review and recommendation of
appointment. Appointments to the Committee will be made by the full City Council.
2https://pub-arroyogrande.escribemeetings.com/Meeting.aspx?Id=586fd20a-05f6-4770-946e-
9227030ef982&lang=English&Agenda=Agenda&Item=44&Tab=attachments
Page 98 of 456
Item 9.g.
City Council
Establishment of a Citizens’ Sales Tax Oversight Committee and Adoption of
Committee Bylaws
March 11, 2025
Page 3
Pending recruitment of individuals to serve on the CSTOC, Council appointments to the
Committee are anticipated to take place in April with the first Committee meeting
anticipated to take place in 2025.
ALTERNATIVES:
The following alternatives are provided for the Council’s consideration:
1. Adopt a Resolution establishing the CSTOC, and adopting Committee Bylaws;
2. Modify and adopt the Resolution; or
3. Provide other direction to staff.
ADVANTAGES:
The creation of an E-24 CSTOC is one way the City of Arroyo Grande can maintain a
high level of accountability and transparency in the allocation of its sales tax revenue. The
committee will provide valuable community input when reviewing the annual report related
to E-24 revenues and expenditures. Additionally, the adoption of Committee Bylaws will
ensure there are a set of guidelines for the Committee members to abide by.
DISADVANTAGES:
The creation of an E-24 CSTOC will create another Brown Act committee for the City that
requires record keeping and meeting administration.
ENVIRONMENTAL REVIEW:
No environmental review is required for this item.
PUBLIC NOTIFICATION AND COMMENTS:
The Agenda was posted at City Hall and on the City’s website in accordance with
Government Code Section 54954.2. Additionally, a notice seeking applications for
committee members was published on the City’s various communications channels on
February 28, 2025, and again on March 4, 2025.
ATTACHMENTS:
1. Proposed Resolution
Page 99 of 456
ATTACHMENT 1
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ARROYO GRANDE ESTABLISHING A
CITIZENS’ SALES TAX OVERSIGHT COMMITTEE
FOR THE OVERSIGHT OF MEASURE E-24 FUNDS
AND ADOPTING COMMITTEE BYLAWS
WHEREAS, on May 28, 2024, the City Council submitted Ordinance No. 731 to the
electorate of the City of Arroyo Grande, to add Chapter 3.26 to Title 3 of the Arroyo Grande
Municipal Code, and enact a one percent (1%) General Transactions and Use Tax (Sales
Tax); and
WHEREAS, on November 5, 2024, the electorate of the City of Arroyo Grande
approved Measure E, and by extension enacted Ordinance No. 731; and
WHEREAS, on February 28, 2025 City Council directed staff to initiate steps to
establish a Citizens’ Sales Tax Oversight Committee (“Committee”) to review the use of
Measure E sales tax revenues; provide feedback to inform City Council direction on
funding by Measure E, and facilitate public input and engagement regarding expenditure
of funds; and
WHEREAS, a majority vote of the City Council is required to carry forward any
recommendation of the Committee; and
WHEREAS, the bylaws of the Committee, and any amendments to those bylaws,
shall be established by City Council resolution.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Arroyo Grande
does hereby resolve as follows:
1. Recitals. The above recitals are true and correct and are incorporated herein by
reference.
2. The Measure E Citizens’ Sales Tax Oversight Committee is hereby established to
serve in a solely advisory capacity at the pleasure of the City Council.
3. To carry out its stated purpose, the Committee shall perform the following duties:
a. Periodically (at least once annually) review revenue, expenditure and other
related reports and information produced regarding Measure E;
b. Report to City Council on whether revenues were collected and expended as
approved.
Page 100 of 456
RESOLUTION NO.
PAGE 2
c. The Committee will be a Brown Act compliant body.
4. The bylaws of the Committee as contained in Exhibit A, are hereby approved.
5. Measure E Citizens’ Sales Tax Oversight Committee shall consist of five (5)
members selected at-large from a pool of applicants who are registered voters within the
City of Arroyo Grande. Members shall serve for a term ending on the January 31st following
the expiration of the term of the respective appointing Mayor or Council Member.
6. Environmental Review. The City Council hereby determines that establishing the
Committee is not a project subject to the California Environmental Quality Act (“CEQA”)
because it has no potential to result in either a direct, or reasonably foreseeable indirect,
physical change in the environment. (State CEQA Guidelines, Cal. Code Regs., tit. 14,
§§ 15060, subd. (c)(2)-(3), 15378.)
7. Effective Date. This Resolution shall take effect upon adoption.
On motion by Council Member ______, seconded by Council Member _______, and by
the following roll call vote to wit:
AYES:
NOES:
ABSENT:
the foregoing Ordinance was adopted this 11th day of March, 2025.
Page 101 of 456
RESOLUTION NO.
PAGE 3
___________________________________
CAREN RAY RUSSOM, MAYOR
ATTEST:
___________________________________
JESSICA MATSON, CITY CLERK
APPROVED AS TO CONTENT:
___________________________________
MATTHEW DOWNING, CITY MANAGER
APPROVED AS TO FORM:
___________________________________
ISAAC ROSEN, CITY ATTORNEY
Page 102 of 456
RESOLUTION NO.
PAGE 4
EXHIBIT A
CITIZENS’ SALES TAX OVERSIGHT COMMITTEE
SALES TAX MEASURE E-24
ADVISORY BODY BYLAWS
Section 1: Purpose
The official name shall be the “Citizens’ Sales Tax Oversight Committee” (herein referred
to as “Committee”). The Committee advises the City Council on the administration and
use of Measure E-24 Sales Tax funds. The Committee shall annually review revenues
and expenditures from the collection of the tax created by the adoption of Ordinance No.
731, as part of an annual report and audit. The Committee shall, through the City Manager
or their designee, submit the Committee’s findings and conclusions to the City Council.
Section 2: Membership
Committee members shall be appointed by the City Council. The total membership of the
Committee shall consist of five (5) members. The Mayor and each Council Member shall
appoint one representative to the Committee, subject to approval by a majority of the
Council.
Appointees shall be registered voters of the City of Arroyo Grande. Criteria and selection
for membership shall not discriminate based upon sex, race, religion, creed, color, age,
national or ethnic origin, or any other classification protected by law. Committee members
may serve consecutive terms with no term limits.
Those seeking appointment to the Committee must submit an application to the City
Clerk’s Office. Those Committee members whose terms have expired must submit a new
application (terms are not automatically renewed), and the City Clerk will notify said
Committee members with a letter and new application form. Applications shall remain
valid and on file for one year.
All appointees to the Committee are also subject to the City's Ethics Policy and training
requirements.
Section 3: Term
Members of the Committee shall serve for a term ending the January 31st following the
expiration of the term of their appointing Mayor or Council Member, as applicable, unless
re-appointed.
Page 103 of 456
RESOLUTION NO.
PAGE 5
Section 4: Remuneration
The Committee shall serve without compensation.
Section 5: Termination of Membership
Any member of the Committee serving shall be terminated in the event the member is no
longer a registered voter within the City of Arroyo Grande.
Section 6: Removal of Members
Members of the Committee may be removed prior to expiration of their term by a majority
vote of the City Council.
Section 7: Resignation
Any Member wishing to resign their membership prior to the scheduled end of their terms
shall do so by delivering written notice to the City Clerk. If the notice of resignation does
not set forth a resignation date, the resignation will be deemed effective as of the date
the notice is received by the City Clerk or the City Clerk’s designee .
The acceptance of such resignation shall not be necessary to make it effective.
Section 8: Filling of Vacancies
In the event of a vacancy on the Board, the City Council shall appoint an individual to fill
such vacancy as soon as reasonably practicable consistent with these bylaws.
Section 9: Functions and Duties
The functions and duties of the Committee shall include, but not be limited to, the
following:
a. Review the use of E-24 revenue for key community priorities;
b. Provide feedback to inform City Council direction on funding by E-24; and
c. Facilitate public input and engagement regarding the expenditure of funds.
Section 10: Officers
a. At the first regular meeting of the Committee wherein newly appointed Members
are seated, the Members shall elect a Chairperson and Vice Chairperson who shall
hold office for a period of one year.
b. The Chairperson shall preside over all meetings of the Committee, and otherwise
perform such duties as directed by the Committee or Council. The Chairperson
may sign documents necessary to carry out the business of the Committee.
c. The Vice Chairperson shall serve in the absence or incapacity of the Chairperson.
Page 104 of 456
RESOLUTION NO.
PAGE 6
Section 11: Meetings
a. Regular Committee meetings shall be held as needed , at least once annually at a
location accessible to the public, in Arroyo Grande, California.
b. A notice, agenda and other necessary documents shall be posted on the City' s
website and delivered by email to Committee members, at least seventy-two (72)
hours prior for a regular meeting.
c. The meetings shall be open to the public.
d. A quorum shall consist of a majority of the Committee Members then serving on
the Committee.
e. All actions of the Committee shall be by a majority vote or consensus and shall be
directed through the Chairperson.
f. Minutes of each meeting shall be taken, shall be available as a public record and
forwarded to the Council, if needed.
Section 12: Staff Representation
a. The City Manager, or their designee, shall serve as the Staff Representative to the
Committee and shall be responsible for preparing agendas and reports pertaining
to Committee business and shall attend the Committee meeting.
b. The Staff Representative, or their designee, shall designate a person to serve as
the Clerk to the Committee. The Clerk shall keep the records of the Committee,
shall act as clerk at meetings of the Committee, shall record all votes, keep a
record of the proceedings of the Committee in a journal of proceedings to be kept
for such purpose and shall perform all duties incident to the office.
Section 13: Amendments
All amendments to the Bylaws shall be approved by the City Council.
Page 105 of 456