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Consider Parameters of Citizen's Oversight Committee for Measure X Revenue January 15, 2019 Page 2 This report offers alternatives and recommendations for the establishment of a Citizens' Oversight Committee (Committee). Staff gathered data regarding oversight committees formed by other cities. The information is presented in Exhibit 1 to this report. • Cities that have populations greater than 200,000, have increased the local sales tax rate, and have a citizens' oversight committee — Long Beach, Riverside, Sacramento, San Bernardino, and Stockton. • Cities in Orange County that have increased the local sales tax rate, and have a citizens' oversight committee — Fountain Valley and Westminster. • The City of La Palma in Orange County also increased the local sales tax rate, but the ballot allowed the City Council to decide whether to establish a citizens' oversight committee. No oversight committee was formed. • The Executive Director of the City's Finance and Management Services Agency (Executive Director) also has experience with the City of Carson's citizens' oversight committee, which was established for utility users tax and oil industry business license tax approved by the city's voters. There is a wide variety of options when establishing a committee, including the number of members and the method of selection. For example, a preference for members with financial expertise may be established. The Executive Director has experience with the City of Rancho Palos Verdes Finance Advisory Committee that is primarily comprised residents with some kind of financial background, and the Committee is very effective. The City of Carson Citizens' Oversight Committee has no Members with a financial background, and as a result the Committee struggles to understand basic financial concepts. The Government Finance Officers Association (GFOA) has a best practice advisory for Audit Committees (found at http://gfoa.ora/audit-committees), but not one specific to Oversight Committees. The only best practice advisories staff could locate for citizen oversight was for law enforcement (found at https://www.nacole.org/standards practices) and issuance of school bonds in California (state law found at https://leginfo.legislature.ca.gov/faces/billTextC]ient.xhtml?bill id=201720180SB341). Recommended By -Laws and Selection Process Based on commonalities of all 3 resources and staff experience, we recommend the following City Council actions. Adopt By -Laws via resolution outlining the duties of the Committee: a. Purpose is advisory only; b. Santa Ana residency required; c. Nine members, with a quorum of five; d. Minimum meeting frequency of quarterly, additional meetings as needed or directed by Council; e. Annual report to City Council; f. Review revenue derived from Measure X; g. Meetings are subject to the Brown Act; h. Chair to be elected by the Committee; 65A-2