HomeMy WebLinkAboutCSTOC 2026-01-09 Agenda PackageCITIZENS' SALES TAX OVERSIGHT
COMMITTEE MEETING
AGENDA SUMMARY
Friday, January 9, 2026, 10:00 a.m.
Hybrid City Council Chamber/Virtual Zoom Meeting
215 East Branch Street, Arroyo Grande
In person at:
Arroyo Grande Council Chamber
215 East Branch Street, Arroyo Grande, CA 93420
AND via Zoom at:
https://arroyogrande-org.zoom.us/webinar/register/WN_ZvNgSCKXQh6inAITO_kbFQ
Please click the link above to register to join the Zoom Meeting
This Citizens' Sales Tax Oversight Committee Regular Meeting is being conducted in a hybrid in-person/virtual
format.
1.CALL TO ORDER
2.ROLL CALL AND FLAG SALUTE
3.PUBLIC COMMENT
4.RECEIVE AND FILE THE BYLAWS FOR THE CITIZENS' SALES TAX OVERSIGHT COMMITTEE
5.SELECTION OF THE CITIZENS' SALES TAX OVERSIGHT COMMITTEE CHAIR AND VICE CHAIR
FOR 2026
6.RECEIVE AND FILE THE PAVEMENT MANAGEMENT PLAN AND 10-YEAR MEASURE E-24
SALES TAX FUND EXPENDITURE PROGRAM REPORT
7.STAFF COMMUNICATIONS
8.COMMITTEE MEMBER COMMUNICATIONS
9.ADJOURNMENT
All staff reports or other written documentation, including any supplemental material distributed to a
majority of the Committee Members within 72 hours of a regular meeting, relating to each item of
business on the agenda are available for public inspection during regular business hours in the City
Clerk’s office, 300 E. Branch Street, Arroyo Grande. If requested, the agenda shall be made
available in appropriate alternative formats to persons with a disability, as required by the Americans
with Disabilities Act. To make a request for disability-related modification or accommodation, contact
the Legislative and Information Services Department at 805-473-5400 as soon as possible and at
least 48 hours prior to the meeting date.
This agenda was prepared and posted pursuant to Government Code Section 54954.2 Agenda
reports can be accessed and downloaded from the City’s website at www.arroyogrande.org If you
would like to subscribe to receive email or text message notifications when agendas are posted, you
can sign up online through the “Notify Me” feature.
Page 2 of 21
Item 4
MEMORANDUM
TO: Citizens’ Sales Tax Oversight Committee
FROM: Nicole Valentine, Director of Administrative Services
SUBJECT: Receive and File the Bylaws for the Citizens’ Sales Tax Oversight
Committee
DATE: January 9, 2026
RECOMMENDATION:
Receive and File the Bylaws for the Citizens’ Sales Tax Oversight Committee.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
No financial impact is projected from receiving the bylaws.
BACKGROUND:
In November 2024, voters in the City of Arroyo Grande approved Measure E -24, a
Transactions and Use Tax measure, which increased the local sales tax rate by one
percent to 8.75% through 2034. As part of the City’s commitment to transparency and
accountability, on February 25, 2025, the City Council directed staff to initiate steps
toward the creation of a Citizens’ Sales Tax Oversight Committee (CSTOC).
Subsequently, at the March 11, 2025, regular meeting, the City Council adopted
Resolution 2025-0161, officially establishing the CSTOC to act as an advisory body to the
City Council.
ANALYSIS OF ISSUES:
This item is informational in nature and is intended to provide the CSTOC with an
overview of with an overview of the CSTOC and processes by which meetings will be
conducted. No policy decisions or actions are requested as part of this report, and receipt
of the information supports the Committee’s advisory role and the City’s ongoing
commitment to transparency and accountability.
ALTERNATIVES:
The following alternatives are provided for the Committee’s consideration:
1. Receive and File the Bylaws for the CSTOC; or
2. Provide other direction to staff.
1 http://ag-lfiche-2016/WebLink/DocView.aspx?id=355689&dbid=0&repo=ArroyoGrande&cr=1
Page 3 of 21
Item 4
Citizens’ Sales Tax Oversight Committee
Receive and File the Bylaws for the Citizens’ Sales Tax Oversight Committee
January 9, 2026
Page 2
ADVANTAGES:
Provides the CSTOC with timely information with an review of the bylaws and
processes by which meetings will be conducted.
DISADVANTAGES:
No disadvantages have been identified from receiving this report.
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.
ATTACHMENTS:
1. Citizens’ Sales Tax Oversight Committee Bylaws
Page 4 of 21
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.
ATTACHMENT 1
Page 5 of 21
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.
ATTACHMENT 1
Page 6 of 21
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.
ATTACHMENT 1
Page 7 of 21
Item 5
MEMORANDUM
TO: Citizens’ Sales Tax Oversight Committee
FROM: Nicole Valentine, Director of Administrative Services
SUBJECT: Selection of the Citizens’ Sales Tax Oversight Committee Chair and
Vice Chair for 2026
DATE: January 9, 2026
RECOMMENDATION:
Select a Chairperson and Vice Chairperson for the Citizens’ Sales Tax Oversight
Committee (CSTOC) for the calendar year 2026 to preside over meetings and perform
duties as directed by the Committee and City Council.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
No financial impact related to the selection of the CSTOC Chairperson and Vice
Chairperson.
BACKGROUND:
The CSTOC is appointed using a similar approach as the City’s other advisory bodies.
Under this approach, each member of the City Council appoints one member of the
CSTOC, subject to approval by a majority of the City Council. The term of each CSTOC
member coincides with the term of the appointing member of the City Council.
ANALYSIS OF ISSUES:
On July 22, 20251, the City Council appointed five members to the CSTOC pursuant to
the bylaws. In Section 10.a of the CSTOC Bylaws, it states “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.”
Section 10.b states, “The Chairperson shall preside over all meetings of the Board, and
otherwise perform such duties as directed by the Committee or Council. The Vice
Chairperson shall serve in the absence or incapacity of the Chairperson.” Given that this
is the first meeting of 2026, it is recommended that a Chairperson and Vice Chairperson
be selected for calendar year 2026.
1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=15367
Page 8 of 21
Item 5
Citizens’ Sales Tax Oversight Committee
Selection of the Citizens’ Sales Tax Oversight Committee Chair and Vice Chair for
2026
January 9, 2026
Page 2
While no selection process is identified in the CSTOC Bylaws, staff would seek
nominations for the position of Chairperson, with the Committee Members' concurrence
by voice vote. Once the Chairperson is selected, the same process will be utilized to
choose a Vice Chairperson.
ALTERNATIVES:
The following alternatives are provided for the Committee’s consideration:
1. Select a Chairperson and Vice Chairperson for the CSTOC for the calendar year
2026 to preside over meetings and perform duties as directed by the Committee
and City Council; or
2. Provide other direction to staff.
ADVANTAGES:
Establishes clear leadership and meeting facilitation for the CSTOC, supporting
efficient and orderly conduct of meetings.
Provides a designated point of coordination between the Committee, City staff, and
the City Council.
Supports continuity, accountability, and effective fulfillment of the Committee’s
advisory responsibilities during the 2026 calendar year.
DISADVANTAGES:
No disadvantages have been identified from selecting a Chairperson and Vice
Chairperson.
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.
Page 9 of 21
Item 6
MEMORANDUM
TO: Citizens’ Sales Tax Oversight Committee
FROM: Nicole Valentine, Director of Administrative Services
SUBJECT: Receive and File the Pavement Management Plan and 10-Year
Measure E-24 Sales Tax Fund Expenditure Program Report
DATE: January 9, 2026
RECOMMENDATION:
Receive and File the Pavement Management Plan and 10 -Year Measure E-24 Sales Tax
Fund Expenditure Program Report.
IMPACT ON FINANCIAL AND PERSONNEL RESOURCES:
Prior to the passage of the Measure E-24 Sales Tax, approximately $1.25 million per year
of funding was available for pavement maintenance. Through efforts to support the City
Council’s decision to place Measure E-24 on the 2024 General Municipal Election, the
community ranked investments in City infrastructure, such as street repairs and sidewalk
improvements, as well as public safety, as top priorities for the use of Measure E -24
funds. Measure E-24, increases the City’s sales tax by 1%, generating approximately $6
million annually for critical City services, infrastructure improvements, and community
programs through 2034.
BACKGROUND:
In November 2024, voters in the City of Arroyo Grande approved Measure E -24, a
Transactions and Use Tax measure, which increased the local sales tax rate by one
percent to 8.75%. As part of the City’s commitment to transparency and accountability,
on February 25, 2025, the City Council directed staff to initiate steps toward the creation
of a Citizens’ Sales Tax Oversight Committee (CSTOC).
On April 22, 20251, before the passage of Measure E-24, the City Council reviewed the
plan to address pavement maintenance for all streets throughout the City over the next
13 years (Attachment 1). The Council determined that this plan be used for annual
pavement management scheduling and budgeting purposes for the 10 -Year Capital
Improvement Program (CIP) Budget and future budgets. This funding is projected to
address pavement maintenance for nearly all public streets, excepting Harden Street and
1 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14368
Page 10 of 21
Item 6
Citizens’ Sales Tax Oversight Committee
Receive and File the Pavement Management Plan and 10-Year Measure E-24
Sales Tax Fund Expenditure Program Report
January 9, 2026
Page 2
parts of Coach Road and Branch Mill Road. Annual costs over thirteen years are
estimated at $5.0 million to $5.5 million per year, except for FY 2025-26, which is
estimated at $6.45 million. Carryover can be used to address the higher cost for that fiscal
period.
On May 13, 20252, the City Council adopted a Resolution approving the City’s 10-Year
Capital Improvement Program for Fiscal Year 2025 -26 through Fiscal Year 2034-35,
including the Measure E-24 Local Sales Tax Fund Expenditure Program (Attachment 2).
ANALYSIS OF ISSUES:
The City began collecting of Measure E-24 Local Sales Tax funds on April 1, 2025. During
the Fourth Quarter of Fiscal Year (FY) 2024-25 (April 1, 2025 through June 30, 2025),
$1,412,062.51 was collected. Expenditures during this same period totaled $3,034.56 in
fees associated with setting up the new Sales Tax Fund with the California Department
of Tax and Fee Administration. The beginning fund balance for FY 2025 -26 was
$1,409,027.95 and included in the Measure E-24 Local Sales Tax Fund Expenditure
Program.
ALTERNATIVES:
The following alternatives are provided for the Committee’s consideration:
1. Receive and File the Pavement Management Plan and 10 -Year Measure E-24
Sales Tax Fund Expenditure Program Report; or
2. Provide other direction to staff.
ADVANTAGES:
Provides the CSTOC with timely information regarding the implementation and use
of Measure E-24 revenues.
Supports the City’s commitment to transparency, accountability, and public trust.
Establishes a baseline for future reporting and ongoing oversight activities of the
Committee.
DISADVANTAGES:
No disadvantages have been identified from receiving this report.
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.
ATTACHMENTS:
1. 13-Year Pavement Maintenance Schedule
2. 10-Year Measure E-24 Sales Tax Fund Expenditure Program
2 https://pub-arroyogrande.escribemeetings.com/filestream.ashx?DocumentId=14506
Page 11 of 21
ATTACHMENT 1
Page 12 of 21
ATTACHMENT 1
Page 13 of 21
CHMENT 1
ATTACHMENT 1
Page 14 of 21
ATTACHMENT 1
Page 15 of 21
ATTACHMENT 1
Page 16 of 21
ATTACHMENT 1
Page 17 of 21
ATTACHMENT 1
Page 18 of 21
ATTACHMENT 1
Page 19 of 21
ATTACHMENT 1
Page 20 of 21
Request Title FY 2024-25 FY 2025-26 FY 2026-27 FY 2027-28 FY 2028-29 FY 2029-30 FY 2030-31 FY 2031-32 FY 2032-33 FY 2033-34 FY 2034-35 10-Year Total
Mason Street Bridge - - - - - - - - - 3,000,000 - 3,000,000
Striping and Sidewalk Improvements - 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 5,000,000
Pavement Management Program - 3,577,640 5,296,200 5,039,000 4,629,000 4,854,400 4,871,900 5,062,200 5,067,300 4,747,300 9,103,900 52,248,840
Halcyon Road Complete Streets/PMP - 1,875,000 - - - - - - - - - 1,875,000
East Grand St. Streetscape Planning &
Construction - - 50,000 160,000 1,800,000 - - - - - - 2,010,000
Branch Mill Road Slope Stabilization - - - - - 600,000 3,000,000 - - - - 3,600,000
Harden Street Slope Stabilization - - - - - - 200,000 - - - - 200,000
Connectivity from Branch (Coach)- - - - - - - 2,000,000 - - - 2,000,000
Subtotal Improvements - 5,952,640 5,846,200 5,699,000 6,929,000 5,954,400 8,571,900 7,562,200 5,567,300 8,247,300 9,603,900 69,933,840
Annual Audit and Sales Tax Report - 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 75,000
Contingency - 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 25,000 250,000
Subtotal Other Expenses - 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 32,500 325,000
Total Expenses - 5,985,140 5,878,700 5,731,500 6,961,500 5,986,900 8,604,400 7,594,700 5,599,800 8,279,800 9,636,400 70,258,840
Revenue 1,500,000 6,000,000 6,180,000 6,365,400 6,556,400 6,753,100 6,955,700 7,164,400 7,379,300 7,600,700 7,828,700 68,783,700
Revenue Over/(Under) Expenses 1,500,000 14,860 301,300 633,900 (405,100) 766,200 (1,648,700) (430,300) 1,779,500 (679,100) (1,807,700)
Beginning Fund Balance - 1,500,000 1,514,860 1,816,160 2,450,060 2,044,960 2,811,160 1,162,460 732,160 2,511,660 1,832,560
Estimated Ending Fund Balance 1,500,000 1,514,860 1,816,160 2,450,060 2,044,960 2,811,160 1,162,460 732,160 2,511,660 1,832,560 24,860
% Fund Balance of Estimated
Revenues 100%25%29%38%31%42%17%10%34%24%0%
CITY OF ARROYO GRANDE
Measure E-24 10-Year Revenue and Expenditure Plan
ATTACHMENT 2
Page 21 of 21