HomeMy WebLinkAboutCC Restructure of Voter Approved Tax Measure Oversight Committee____________________________________________________________________________________
FOR CITY CLERK ONLY
Council Meeting: September 6, 2022
Disposition: Resolution 15118
Agenda Item No: 4.c
Meeting Date: September 6, 2022
SAN RAFAEL CITY COUNCIL AGENDA REPORT
Department: City Clerk’s Office
Prepared by: Lindsay Lara,
City Clerk
City Manager Approval: __________
TOPIC: RESTRUCTURE OF VOTER APPROVED TAX MEASURE OVERSIGHT
COMMITTEES
SUBJECT: RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ESTABLISHING AND ADOPTING BYLAWS OF THE VOTER APPROVED
TAX OVERSIGHT COMMITTEE; APPOINTING THE VOTER APPROVED
TAX OVERSIGHT COMMITTEE AS THE TRANSACTION AND USE TAX
OVERSIGHT COMMITTEE, THE SPECIAL LIBRARY PARCEL TAX
OVERSIGHT COMMITTEE, THE INDEPENDENT OVERSIGHT COMMITTEE
OVER THE CANNABIS INDUSTRY TAX REVENUES, AND AS THE
INDEPENDENT OVERSIGHT COMMITTEE OVER VOTER APPROVED
CITY TAX MEASURES; AND DISSOLVING THE EXISTING TRANSACTION
AND USE TAX OVERSIGHT COMMITTEE, THE SPECIAL LIBRARY
PARCEL TAX OVERSIGHT COMMITTEE, AND THE CANNABIS INDUSTRY
TAX OVERSIGHT COMMITTEE
RECOMMENDATION:
1.Adopt a resolution establishing and adopting bylaws of the Voter Approved Tax
Oversight Committee; appointing the voter approved tax oversight committee as the
transaction and use tax oversight committee, the special library parcel tax oversight
committee, the independent oversight committee over the cannabis industry tax
revenues, and as the independent oversight committee over voter approved City tax
measures; and dissolving the Transaction and Use Tax Oversight Committee, the
Special Library Parcel Tax Oversight Committee and the Cannabis Industry Tax
Oversight Committee
BACKGROUND:
San Rafael has three active oversight committees all tasked with providing oversight of voter
approved tax measure expenditures. Each Committee consists of five members and the
Committees each meet around two times annually to ensure the monies have been
expended in accordance with the authorized purposes of each of the measures, as outlined
in the applicable ordinances approved by the voters. In 2020, the electorate approved
Measure R and the ordinance requires an independent oversight committee to monitor
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 2
Measure R revenues and expenditures and conduct an annual report process. Establishing
a new oversight committee for Measure R would bring San Rafael to four oversight
committees, with similar purviews under different ordinances.
Unlike our other boards and commissions, recruitment and retention for oversight
committees is difficult due to meeting one to two times annually, and the limited scope of the
committee to provide oversight of expenditures, but not recommendations. Typically,
recruitments for our oversight committees produce a very low number of applications and
require extending the deadlines in an effort to receive additional applications. Since 2019,
the City Clerk’s office has recruited five different times and only received 17 applications for
the 12 vacancies.
ANALYSIS:
The recommended action would consolidate oversight of all of the City’s voter approved
measures into one five-member committee, the Voter Approved Tax Oversight Committee,
which would provide independent oversight on all voter approved tax measures.
This new committee structure should not negatively impact the level of oversight being
provided by any of our existing oversight committees. The volunteers currently serving on
oversight committees have provided an excellent service to San Rafael and our community.
Not only are oversight committees required by ordinance, but oversight of voter approved
taxes are an important element of good governance and transparency. Unlike our existing
oversight committee structure, the consolidated Voter Approved Tax Oversight Committee
would meet more frequently throughout the year, receive financial information, and
generate/recommend the annual report to be approved by the city council for each measure.
The recommended Voter Approved Tax Oversight Committee’s mission would be to monitor
all current measure revenue and expenditures to ensure the monies have been expended in
accordance with the authorized purposes, and to prepare and submit to the City Council an
annual report on the expenditures and revenues from each tax measure’s revenue from the
previous fiscal year.
A resolution (Attachment 1) would formally establish the Voter Approved Tax Oversight
Committee. Staff recommends that the Committee be composed of five (5) members. All
Committee members would be required to be 18 years of age and live within city limits, and
would serve staggered two- or four- year terms.
Staff recommends the application process begin immediately. The City Clerk’s office would
release the call for applications, with an application filing deadline of three weeks or open
until filled. The City Clerk’s office would contact all members currently serving on an
oversight committee, as well as past applicants, to notify them of the newly established
Voter Approved Tax Oversight Committee and invite them to apply, along with our usual
outreach process for recruitment. The City Clerk’s office is currently recruiting for vacancies
on the Special Library Parcel Tax Oversight Committee (Measure D) and, if approved, staff
would notify applicants of the change and confirm their interest in serving on the Voter
Approved Tax Oversight Committee.
The resolution also dissolves the Measure E, D and G Oversight Committees. While staff is
recommending the oversight committees be dissolved, the newly established Voter
Approved Tax Oversight Committee will serve as the independent citizen oversight
SAN RAFAEL CITY COUNCIL AGENDA REPORT / Page: 3
committee to review the collection and expenditure of the tax revenues collected under the
authority of each of the applicable ordinances.
Each ordinance approved by the voters, with the exception of the cannabis industry tax
ordinance, included a clause related to independent citizen oversight, similar to this:
Independent Citizen Oversight.
A city transactions and use tax committee, to be established by the city council by
resolution, shall review the collection and expenditure of tax revenues collected under
the authority of this chapter. The committee shall consist of at least five (5) members,
who shall be residents of the city. The terms of the committee members and their
specific duties shall be established by resolution of the city council.
Section 3.19.144 of the San Rafael Municipal Code (Measure E Transactions and Use Tax);
see also, section 3.19A.144 (Measure R Transactions and Use Tax); section 3.36.080
(Measure D Special Library Services Parcel Tax). The recommended Voter Approved Tax
Oversight Committee would be consistent with these requirements.
The Measure G Cannabis Industry Tax Oversight Committee was not established by
ordinance but by resolution of the city council on October 21, 2019. The Committee was
established as five (5) members, at least 18 years of age and San Rafael residents, serving
staggered two-or four-year terms. The recommended Voter Approved Tax Oversight
Committee would be consistent with this existing administration of the Committee.
Currently, the staff liaisons for the Committees being dissolved are the Assistant Library and
Recreation Director, Administrative Services Director, and the Director of Economic
Development and Innovation. The Staff Liaison for the recommended Voter Approved Tax
Oversight Committee would be a staff person from the Administrative Services Department,
which includes the City’s finance department, and they would work in collaboration with the
previous oversight committee staff liaisons to provide the Committee with
revenue/expenditure information, as well as to generate the annual report. Additionally, the
bylaws for the recommended oversight committee would be consistent with the bylaws of
our other boards and commissions.
FISCAL IMPACT:
There is no fiscal impact associated with this action.
COMMUNITY OUTREACH:
If approved, the City Clerk’s office would release a call for applications at City facilities,
social media, the City website, and by mass email notification. Additionally, an email has
been sent to all oversight committee members letting them know about the proposed action,
and where and how to provide public comment at this meeting, along with a copy of this staff
report.
OPTIONS:
1. Adopt the resolution as presented.
2. Adopt the resolution as amended.
3. Do not adopt the resolution and direct staff to return with additional information.
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RECOMMENDED ACTION:
1. Adopt a resolution establishing and adopting bylaws of the Voter Approved Tax
Oversight Committee; appointing the voter approved tax oversight committee as the
transaction and use tax oversight committee, the special library parcel tax oversight
committee, the independent oversight committee over the cannabis industry tax
revenues, and as the independent oversight committee over voter approved City tax
measures; and dissolving the Transaction and Use Tax Oversight Committee, the
Special Library Parcel Tax Oversight Committee and the Cannabis Industry Tax
Oversight Committee
ATTACHMENTS:
1. Resolution
RESOLUTION NO. 15118
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SAN RAFAEL
ESTABLISHING AND ADOPTING BYLAWS OF THE VOTER APPROVED TAX
OVERSIGHT COMMITTEE; APPOINTING THE VOTER APPROVED TAX
OVERSIGHT COMMITTEE AS THE TRANSACTION AND USE TAX OVERSIGHT
COMMITTEE, THE SPECIAL LIBRARY PARCEL TAX OVERSIGHT COMMITTEE,
THE INDEPENDENT OVERSIGHT COMMITTEE OVER THE CANNABIS INDUSTRY
TAX REVENUES, AND AS THE INDEPENDENT OVERSIGHT COMMITTEE OVER
VOTER APPROVED CITY TAX MEASURES; AND DISSOLVING THE EXISTING
TRANSACTION AND USE TAX OVERSIGHT COMMITTEE, THE SPECIAL LIBRARY
PARCEL TAX OVERSIGHT COMMITTEE, AND THE CANNABIS INDUSTRY TAX
OVERSIGHT COMMITTEE
WHEREAS, San Rafael has three active tax oversight committees, with 14
different volunteers, and at the General Municipal Election held on November 3, 2020,
San Rafael voters approved Measure R, requiring oversight of new Measure R funds;
and
WHEREAS, staff recommends consolidating all oversight committees into one
Voter Approved Tax Oversight Committee with the purposes of providing oversight over
the collection and use of voter approved tax proceeds, and ensure monies are being
spent as outlined in the establishing ordinances approved by voters, and generating an
annual report for each tax measure; and
WHEREAS, the City Council finds that consolidating the tax oversight function
into one Voter Approved Tax Oversight Committee would meet the requirements of the
San Rafael Municipal Code and each tax ordinance, and would provide the same level
of oversight over voter approved tax revenues as currently provided by the three
existing committees.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of San
Rafael hereby:
1. Establishes the Voter Approved Tax Oversight Committee which shall serve
as the independent tax oversight committee for the purpose of reviewing the
collection and expenditure of tax revenues collected under the authority of
voter approved City tax measures; and
2. Adopts the bylaws of the Voter Approved Tax Oversight Committee, including
its responsibilities and duties, as specifically delineated in Exhibit “A” attached
hereto and incorporated herein; and
3. Appoints the Voter Approved Tax Oversight Committee as the Transaction
and Use Tax Oversight Committee required under Section 3.19.144 of the
San Rafael Municipal Code to review the collection and expenditure of
Transaction and Use Tax revenues collected pursuant to Chapter 3.19 of the
San Rafael Municipal Code, and upon appointment of a quorum of members
of the newly-formed Voter Approved Tax Oversight Committee, dissolves the
existing Transaction and Use Tax Oversight Committee established by
resolution of the City Council on April 7, 2014; and
4. Appoints the Voter Approved Tax Oversight Committee as the Transaction
and Use Tax Oversight Committee required under Section 3.19A.144 of the
San Rafael Municipal Code to review the collection and expenditure of
Transaction and Use Tax revenues collected pursuant to Chapter 3.19A of
the San Rafael Municipal Code; and
5. Appoints the Voter Approved Tax Oversight Committee as the Special Library
Parcel Tax Oversight Committee required under Section 3.36.080 of the San
Rafael Municipal Code to review the collection and expenditure of Special
Library Tax revenues collected pursuant to Chapter 3.36 of the San Rafael
Municipal Code, and upon appointment of a quorum of members of the
newly-formed Voter Approved Tax Oversight Committee, dissolves the
existing Special Library Parcel Tax Oversight Committee established by
resolution of the City Council on May 15, 2017; and
6. Appoints the Voter Approved Tax Oversight Committee as the independent
oversight committee to review the collection and expenditure of Cannabis
Industry Tax revenues collected pursuant to Chapter 3.40 of the San Rafael
Municipal Code, and upon appointment of a quorum of members of the
newly-formed Voter Approved Tax Oversight Committee, dissolves the
Cannabis Industry Tax Oversight Committee established by resolution of the
city council on October 21, 2019; and
7. Appoints the Voter Approved Tax Oversight Committee as the independent
oversight committee over all other voter approved City tax measures that may
hereinafter be enacted, except where otherwise expressly specified.
I, LINDSAY LARA, CLERK of the City of San Rafael, hereby certify that the
foregoing resolution was duly and regularly adopted by the City Council of the City of
San Rafael, Marin County, California, at a regular meeting, held on the 6th day of
September 2022, by the following vote, to wit:
AYES: COUNCILMEMBERS: Bushey, Hill, Kertz, Llorens Gulati & Mayor Kate
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: None
LINDSAY LARA, City Clerk
Voter Approved Tax Oversight Committee Bylaws
Page 1 of 2
VOTER APPROVED TAX OVERSIGHT COMMITTEE BYLAWS
ARTICLE I. NAME AND PURPOSE
Section 1.1. Name. The name of this body shall be the City of San Rafael Voter Approved
Tax Oversight Committee, hereinafter referred to as the “Committee.”
Section 1.2. Purpose. The Committee’s purpose is to review the collection and expenditure
of voter approved tax revenues collected under the authority of voter-approved City tax
measures and Resolution 15118 adopted by the San Rafael City Council on September 6,
2022.
Section 1.3. Committee Responsibility. The Committee’s authority is oversight only.
The responsibilities and duties of the Committee shall be limited to:
1.2 Review expenditures of Measure tax revenues to ensure the monies have been
expended in accordance with the authorized municipal purposes of each Measure.
To complete this review, the Committee shall:
1.2.1 Understand allowable expenses of each existing Measure’s tax funds (as
identified in the enacting Municipal Ordinance)
1.2.2 Review documentation from City Council and from City Council-appointed
advisory committees that pertain to the prioritization of use of each
Measure’s tax funds.
1.2.3 Review annual reports prepared by the City’s Finance Department that track
the receipt and spending of each Measure’s tax funds.
1.2.4 Prepare and submit to the City Council and the community an annual public
report on the expenditures of each Measure’s tax revenues for the previous
fiscal year.
1.2.5 Fulfill the final responsibilities of each Measure’s responsibilities at the
Measure’s termination, repeal or extension: Before submitting a final report:
Review and report on the final expenditures of each Measure during the
previous fiscal year, through its termination, to ensure that monies have
been expended consistent with the authorized purposes of the Measure.
The Committee shall not:
1. Have any budgetary decision authority, shall not allocate financial resources, and shall
not make budget or service recommendations to the City Council.
2. Have authority to direct, nor shall it direct, City staff or officials.
Voter Approved Tax Oversight Committee Bylaws
Page 2 of 2
ARTICLE II. MEMBERSHIP
Section 2.1. Number of Members. The Voter Approved Tax Oversight Committee shall
consist of five (5) voting members.
Section 2.2. Eligibility. Members of the Committee shall be at last 18 years of age and
reside within the City limits.
Section 2.3. Appointment of Committee Members. Members shall be appointed by the
City Council. Appointments shall be published on the website for the City of San Rafael in
accordance with Government Code Section 54973, as amended from time to time.
Section 2.4. Terms of Appointment. Each member shall serve a minimum term of four (4)
years. An effort will be made to ensure that the terms are staggered, and not all of the
appointments expire in the same year.
Section 2.5. Term Limits. Members shall be limited to two (2) consecutive four-year terms.
Additional terms may be served if there is a break between terms.
Section 2.6. Absence and Removal. An unexcused absence from two (2) consecutive
Committee meetings without notification to the Staff Liaison will constitute an immediate
vacancy and shall be considered a voluntary resignation from the Committee. Previously
dismissed Committee members may be eligible for reappointment.
Section 2.7. Compensation. Members shall serve without compensation.
ARTICLE III. MEETINGS
Section 3.1. Time and date of Regular Meeting. Notification of meeting place, date, and
time shall be rendered to the public through posting on the City of San Rafael website.