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HomeMy WebLinkAbout08.02.2023 @630 Regular Measure W COCWednesday, August 2, 2023 6:30 PM City of South San Francisco P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA City Hall, City Manager's Conference Room 400 Grand Avenue, South San Francisco, CA Measure W Citizens' Oversight Committee Engy Del Rosario, Chair Edmund de Guzman, Vice Chair William Zemke, Committee Member Mike Brosnan, Committee Member Jamie Rey, Committee Member William Romero - Alternate Regular Meeting Agenda 1 August 2, 2023Measure W Citizens' Oversight Committee Regular Meeting Agenda How to submit written Public Comment before the Meeting: Members of the public are encouraged to submit public comments in writing in advance of the meeting by emailing: [email protected] How to provide Public Comment during the Meeting: COMMENTS ARE LIMITED TO THREE (3) MINUTES PER SPEAKER Under the Public Comment section of the agenda, members of the public may speak on any item not listed on the Agenda. Pursuant to provisions of the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The Chair may direct staff to investigate and/or schedule certain matters for consideration at a future meeting. If there appears to be a large number of speakers, the Chair may reduce speaking time to limit the total amount of time for public comments (Gov. Code sec. 54954.3(b)(1).). American Disability Act: The City Clerk will provide materials in appropriate alternative formats to comply with the Americans with Disabilities Act. Please send a written request to City Clerk Rosa Govea Acosta at 400 Grand Avenue, South San Francisco, CA 94080, or email at [email protected]. Include your name, address, phone number, a brief description of the requested materials, and preferred alternative format service at least 24-hours before the meeting. Accommodations: Individuals who require special assistance of a disability -related modification or accommodation to participate in the meeting, including Interpretation Services, should contact the Office of the City Clerk by email at [email protected], 24-hours before the meeting. Page 2 City of South San Francisco Printed on 1/5/2024 2 August 2, 2023Measure W Citizens' Oversight Committee Regular Meeting Agenda CALL TO ORDER ROLL CALL AGENDA REVIEW ITEMS FROM STAFF MEMBERS PUBLIC COMMENT MATTERS FOR CONSIDERATION Motion to approve the meeting minutes for the Measure W Citizens’ Oversight Committee meeting of June 7, 2023 1. Presentation to the Measure W Citizens’ Oversight Committee regarding the Ralph M. Brown Act (Kimia Mahallati, Assistant City Attorney) 2. Presentation and Discussion on Measure W Financials (Karen Chang, Director of Finance) 3. Consider and Move to Approve Measure W Citizens’ Oversight Committee regular meeting schedule to quarterly meetings (Karen Chang, Director of Finance) 4. ITEMS FROM BOARD MEMBERS, COMMISSIONERS, COMMITTEE MEMBERS ADJOURNMENT Page 3 City of South San Francisco Printed on 1/5/2024 3 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:23-649 Agenda Date:8/2/2023 Version:1 Item #:1. Motion to approve the meeting minutes for the Measure W Citizens’ Oversight Committee meeting of June 7, 2023 City of South San Francisco Printed on 7/28/2023Page 1 of 1 powered by Legistar™4 CALL TO ORDER Chair Del Rosario called the meeting to order at 6:39 p.m. ROLL CALL Chair Del Rosario, present Vice Chair DeGuzman, present Committee member Zemke, present Committee member Brosnan, present Committee member Rey, absent. AGENDA REVIEW No changes. REMOTE PUBLIC COMMENTS No public comments made. WELCOME AND INTRODUCTIONS Finance Director Karen Chang briefly went over the agenda for the evening. MATTERS FOR CONSIDERATION 1. Motion to approve the Minutes from the meeting January, 23, 2023 and April 5, 2023. Motion – Committee Member Zemke/Second – Chair Del Rosario: To approve the Minutes from the meeting January, 23, 2023 and April 5, 2023, by roll call vote: AYES Committee member Brosnan, Committee member Zemke, Vice Chair DeGuzman, Chair Del Rosario NAYS: None; ABSENT: Committee member Ray; ABSTAIN: None. Motion passes unanimously. 2. Presentation to the Measure W Citizen’s Oversight Committee regarding Roles and Responsibilities. Assistant City Attorney Ali Wolf gave a brief introduction to her presentation. She stated it was important to revisit so Committee members can reestablish the purpose of the Measure W roles and responsibilities. Vice Chair DeGuzman asked if she would be stating the legislative intent, and Assistant City Attorney Wolf answered that it would be included in the presentation. She explained that Measure W was approved by the voters by a half cent sales tax. It was approved November 3, 2015, and the tax went into effect April 1, 2016. Assistant City Attorney Wolf stated the intent was MINUTES SPECIAL MEETING MEASURE W CITIZENS’ OVERSIGHT COMMITTEE CITY OF SOUTH SAN FRANCISCO Wednesday, June 7, 2023 6:30 p.m. IN-PERSON MEETING 5 MEASURE W COC SPECIAL MEETING MINUTES June 7, 2023 PAGE 2 that it would be a general tax. There are two different taxes that could be adopted: general tax and special tax. Voters approved the general tax, which essentially establishes the way in which the city can spend the tax dollars. In the case of Measure W, the tax dollars may be spent for any legitimate government purpose, even though there are certain priorities that were listed in the tax that was adopted. Vice Chair DeGuzman stated that the government purpose is very broad language, and anyone can define it. For a governmental purpose, it is broad, and it includes certain priorities of what the funds could be spent on. Vice Chair DeGuzman asked if the Committee is supposed to go down the expenditure list and go through each line item to see if they are for government purposes. Assistant City Attorney Wolf responded that there are challenges in understanding the role of committee vs the role of staff members. It’s the role of staff member to spend funds on an individual project in a way that’s consistent with the Measure W Tax Measure that voters approved. It’s not necessarily the role of the Measure W committee to go line by line through project expenditure and spending to determine whether each individual expenditure was a government purpose. The purpose is to get an overall understanding of the revenues that come in from the tax, the expenditures that have been made on projects, and if that is consistent with the Measure W tax. It’s to ensure the independence of the Measure W committee and staff that are doing the day-to-day operations to ensure that the funds are being spent in the way that the City Council has directed. Vice Chair DeGuzman asked if the City Council budgeted for the specific expenditure, then is it already covered as a government purpose. Assistant City Attorney Wolf confirmed. Vice Chair DeGuzman then asked if it’s up to the City Council to analyze if the expenditures are for governmental purposes. Assistant City Attorney Wolf explained that the City Council does not approve every single expenditure because there are different levels of spending authority throughout the City. For example, department heads and city managers have different spending authority, if the spending meets a certain amount, then the City Council would have to approve it. Line-by-line is generally left to the staff to ensure how a project is supposed to proceed and is managed by the department head/manager. All revenue and expenditure are brought forth by the finance director, so the Measure W committee is able to see what the City has been spending Measure W funds on. Chair Del Rosario was under the impression that the Committee is supposed to go line by line through expenditures. She thought they were missing something because they don’t have all the details. Assistant City Attorney Wolf explained that while the Committee has the right to access detail records, it would not be considered as part of the role of the Committee to go line by line through each spending item. The role of the committee is partially reviewing the audit results. Committee member Brosnan asked if there was an inappropriate use of funds, how would the Committee see that? Finance Director Chang stated that each project manager will review and approve the vendor invoices, then finance will review the invoices again to make sure that there’s enough supporting documents and issued payments. Committee member Brosnan explained that he was playing devil’s advocate since they are the Committee that provide oversight. Committee member Brosnan does not agree that they do not get the detailed information. Committee member Zemke expressed his opinion that what he is asking to do is different than what the auditors do. Finance Director Chang informed the Committee that she would invite the auditors back in the Fall to explain the audit process. Committee member Brosnan asked how he could evaluate the audit results. Finance Director Chang stated that based on the auditor’s presentation and if there’s any issues, auditor will issue audit findings. Committee member Brosnan asked if he gets the detailed revenue and expenditure report, will he be able to see the revenue income and see that there are expenditures by month? Assistant City Attorney Wolf stated that part of what the voters approved is for the Committee to see how Measure W funds are being spent towards City projects. The Committee’s role is to ensure the money is spent on those expenditures approved by the Council. Vice Chair DeGuzman asked if something is presented to them and they have some questions about the 6 MEASURE W COC SPECIAL MEETING MINUTES June 7, 2023 PAGE 3 numbers or the expenditure, can they have a talk with the auditors about it? Assistant City Attorney Wolf stated that communications with the auditor is the responsibility of staff. The Measure W committee would be able to talk to the auditor in a public meeting or through staff regarding any questions. Finance Director Chang stated that there was a hierarchy of City staff reviewers. If someone has a question, they should go to the Finance Director first and then the City Manager. 3. Presentation and Discussion on Measure W Financial Update and FY 2022-23 Audit Calendar Finance Director Chang gave a brief overview of the Financial Status as of April 30, 2023. As of today, June 7, 2023, the City has received revenue of about $10 million instead of $8 million. The City is on track in terms of revenue projections. The City is projecting higher revenue next fiscal year if the economy continues. For the debt service payment, $8.2 million covers two bonds. If the City starts to pay 2022A bond debt service payment, the total will be about $13 million. Committee member Brosnan asked as they move on from the completed projects, is there a line item that speaks specifically to maintenance, to these assets for the next 30 years? Finance Director Chang stated that that was a good point, and if there is excess money, they’ll be sure to mention that the concern regarding maintenance to staff. Committee member Brosnan expressed that there were not enough parking for the PD Building. As the Police Department building was completed, Finance Director Chang responded that she’s not sure what else can be done in terms of parking. On the audit calendar, there are two times scheduled for when the Committee will meet with the auditor. One time will be during the interim audit. The purpose of this is for the auditor to come in and check the internal controls, i.e. whether there might be any weakness that is susceptible to fraud. The auditor will pick the samples more closely related to the identified weakness. There is a time lag, and the auditors will not come and audit until they have everything. Therefore, the auditors will come at the end of the review process when everything is entered. Sometimes they focus on fixed assets. Based on Finance Director Chang’s previous experience with auditor, she stated that each year auditor will have a slightly different focus for their audit based on information that auditors received during the interim audit questionnaire. Member Brosnan stated that it’s their understanding that Committee hasn’t been meeting with auditor during the last few years. Finance Director Chang responded that she hoped that the process that the Committee experienced last year was a good process. The auditor will review the end result of the audit with the Committee members, staff will help to draft a report for the Committee to present to the City Council. Chair del Rosario would like the auditor to come in to discuss before she has to sign anything. Staff should schedule a time for the Committee to meet with the auditor during a regular meeting of the Measure W Committee. Chair del Rosario asked if the Committee would have an opportunity to see the report prior to the meeting. Finance Director Chang explained that the draft audit will be in November or December, so the meeting in October would be the auditor explaining the process, not the results. The auditor is able to provide the Committee with preliminary results of the audit. Chair del Rosario inquired whether the auditor is performing the audit in person or remotely. Director Chang stated that they conduct the audit remotely. There is a portal for the requested backup and supporting documents to be uploaded for the auditor’s review during audit. The City can request the auditor to work on the premises during audit, however, it seems more efficient for the auditor to work remotely. 4. Consider and Move to Approve Measure W Committee Regular Meeting Schedule Change to Quarterly Regular Meetings Finance Director Chang stated that the Committee approved bi-monthly meetings in 2016. Finance Director Chang explained that there is currently only one type of revenue at the end of each 7 MEASURE W COC SPECIAL MEETING MINUTES June 7, 2023 PAGE 4 quarter. It is more meaningful to make the meeting quarterly. Committee members asked whether there is any legislative intent that says that we have to meet bi-monthly? Assistant City Attorney Wolf responded that the Committee established regular meetings for every even number month. It is up to the Committee to amend the regular meeting schedule. Committee member Zemke stated that they seemed to just choose every two months. Committee member Brosnan explained how the process has changed over time. He spent many meetings talking about how that has changed, and then COVID-19 hit. Now they are back to meeting in person, and he thinks they have a group that wants to be active. Finance Director Chang stated that she could still send out the quarterly reports. It’s just a lot of information. If the Committee prefers, staff can run the report on a regular basis and continue meeting every two months. Chair Del Rosario stated they think they saw a report that was slightly more detailed with the civic campus paving program and debt service. Committee member Brosnan wants to see the individual invoice. Finance Director Chang asked whether everyone else wants to see that so much detail as well? Finance Director stated that it is not difficult to run the report but it’s not the Committee’s role to review each individual expenditure. Finance Director Chang suggested a review of what documentation other oversight committees get. The Committee wants to meet regularly. When the pool is done, there will not be a lot of activity. There will not be a lot of funds coming out of Measure W. Finance Director Chang can reach out to the Director of Capital Projects Gilchrist to set up a tour of the LPR since Chair del Rosario missed the last one. Committee member Zemke asked what would fit best? The Committee must review the audit process, so maybe the Committee should have a staggered schedule and always have the option to call a special meeting. Finance Director Chang will bring the item back in a few months and revisit the question of changing the meeting schedule. They will report back to the Committee in August. A Brown Act training will be provided, and staff will bring back the status and examples of other City’s oversight committees. ADJOURNMENT Being no further business, Chair Del Rosario adjourned the meeting at 8:00 p.m. Submitted by: Approved by: _____________________ ______________________________ Amanda Parker Del Rosario Secretary Chair Approved by the Measure W Citizens’ Oversight Committee: / / 5417368.1 8 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:23-650 Agenda Date:8/2/2023 Version:1 Item #:2. Presentation to the Measure W Citizens’ Oversight Committee regarding the Ralph M. Brown Act (Kimia Mahallati, Assistant City Attorney) City of South San Francisco Printed on 7/28/2023Page 1 of 1 powered by Legistar™9 Brown Act Training Measure W Citizens’ Oversight Committee Kimia Mahallati, Assistant City Attorney August 2, 2023 Government code Section 554957.5 SB 343 Agenda: 08/02/2023 Reg Measure W COC - Item 2 10 City of South San Francisco Presentation Overview I.What is the Brown Act? II.What does the Brown Act Require? III.Common Pitfalls IV.Quiz 11 City of South San Francisco What is the Brown Act? 12 City of South San Francisco Brown Act Key Elements •Meetings… •Of Legislative Bodies… •Shall be open and public •And all persons shall be permitted to attend any meeting Open Meeting Requirements City of South San Francisco Default: All committee meetings must be open and public, unless an exception is permitted. 13 City of South San Francisco Who Does the Brown Act Apply To? The Brown Act applies to Legislative Bodies: •Committees, Commissions, Advisory Bodies –Created by action of the City Council –Continuing subject matter jurisdiction –Fixed meeting schedule 14 City of Walnut Creek •A congregation of a majority of Commissioners at the same time and place to hear, discuss, or act on public business. •Exceptions: What is a “Meeting”? •Individual contacts •Conferences * •Open community meetings * •Another body of the agency * •Social or ceremonial events * •Standing committee meetings *Provided that a majority of the members do not discuss among themselves, other than as part of the scheduled program, City business. City of South San Francisco15 City of South San Francisco Meetings Avoiding Serial Meetings: •Outside of an open and noticed public meeting, a majority of a Committee may not discuss, deliberate, or take action by direct communication, intermediaries, or technology –Does not prevent employees and officials from engaging in separate conversations outside of a meeting provided that the comments or positions of other members are not communicated 16 City of South San Francisco Examples of Serial Meetings Hub and spoke A staff member or Committee member (hub) communicates with other members of the Committee (spokes) one-by-one for input on a proposed action During this process, members’ positions are revealed to other members. Daisy chain Chain conversation results in a quorum discussing and taking action 17 City of South San Francisco Serial Meetings •Do not reply-all when responding to emails or texts copying other Committee members •Social Media, Blogs, NextDoor (AB 992) –Commissioners may not discuss, or respond directly to any communications posted online by other committee members,regarding a matter within its jurisdiction. –i.e. posting or using emojis Email, Texts and Social Media 18 City of South San Francisco Agendas 19 City of South San Francisco Agendas •Posting requirements: –Regular meetings must be posted 72 hours before meeting –Special meetings must be posted 24 hours before meeting Discuss & act only on items on a posted agenda •Exceptions: –Emergency Meetings –Urgency  need for immediate action came to agency’s attention after posting the agenda 20 City of South San Francisco Items on the Agenda •Those that are within the Committee’s jurisdiction •The scope of the Committee’s review is limited to what has been assigned to it by the City Council. What items can be agendized? 21 City of South San Francisco Public Participation •Regular meetings must provide an opportunity for the public to speak regarding any matter within the body’s jurisdiction –Legislative body may briefly discuss these items and refer matters to staff, but cannot take action. –Public can address the legislative body on agendized matters before or during consideration. •Special meetings –Agenda topics only •Reasonable time limits and other management measures are okay –Speaker cards must be voluntary/optional –May not limit “negative” comments 22 City of South San Francisco Consequences-Summary Violations of the Brown Act can result in: •Nullification of a decision made in violation of the Brown Act’s requirements; •Willful violation can incur criminal penalties; •A possible award of attorneys’ fees to the party successfully bringing a Brown Act lawsuit; •Loss of public confidence. 23 QUIZ 24 City of South San Francisco Question •A Committee member e-mails his concerns about the current Measure W financial report to the other 4 Committee members in regards to an item on the next meeting agenda. •Two members respond back to the email group and indicate that they also have concerns about the financial report. Was this a Brown Act violation? 25 City of South San Francisco Answer to Question •Yes ; the Committee members have participated in a discussion of an item within the jurisdiction of the body that was not noticed, open, or public. 26 City of South San Francisco Questions? Q&A 27 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:23-648 Agenda Date:8/2/2023 Version:1 Item #:3. Presentation and Discussion on Measure W Financials (Karen Chang, Director of Finance) City of South San Francisco Printed on 7/28/2023Page 1 of 1 powered by Legistar™28 Karen Chang, Director of Finance August 2, 2023 Presentation to Measure W Citizens’ Oversight Committee 29 Overview of Measure W Financials 2 Fiscal Year Ended Cumulative Total as of 6/30/2020 6/30/2021 6/30/2022 7/1- 6/30/23 (Preliminary) Total (Inception thru 6/30/2023) REVENUES $45,891,353 $13,379,292 $15,399,766 $13,085,563 $87,755,974 EXPENDITURES Civic Campus 24,569,553 16,693,441 3,019,534 1,412,301 45,694,829 Paving Program 5,935,264 964,312 174,279 49,240 7,123,095 Debt Service 407,155 2,767,200 8,287,833 8,289,450 19,751,638 TOTAL EXPENDITURES 30,911,972 20,424,953 11,481,646 9,750,991 72,569,562 Revenues less Expenditures 14,979,381 (7,045,661)3,918,120 3,334,572 15,186,412 FUND BALANCE 14,979,381 7,933,720 11,851,840 15,186,412 15,186,412 30 FY 2022-23 Revenue/ Expenditures Summary 3 Expenditure Budget Actual (06/30/2023) Remaining Balance Revenues*$13,800,000 $13,085,563 $714,437 Expenditures Civic Campus $14,581,039 $1,412,301 $13,168,738 Paving Program 1,160,626 49,239 1,111,386 Debt Service 8,289,450 8,289,450 - Total Expenditures 24,031,115 9,750,991 14,280,124 Revenues Less Expenditures (10,231,115) 3,334,572 (13,565,687) *Sales taxes receipt has a 2-month lag 31 Measure W Regular Meeting Schedule Change •Current: Bi-monthly •Proposed: Quarterly 32 QUESTIONS 533 City of South San Francisco Legislation Text P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, CA File #:23-651 Agenda Date:8/2/2023 Version:1 Item #:4. Consider and Move to Approve Measure W Citizens’ Oversight Committee regular meeting schedule to quarterly meetings (Karen Chang, Director of Finance) City of South San Francisco Printed on 7/28/2023Page 1 of 1 powered by Legistar™34