On November 6, 2018, the voters of the City of Garden Grove passed Measure O – Garden Grove Public Safety/9-1-1 and Vital City Services Measure, an initiative ordinance authorizing a one-cent (1%) transactions and use (sales) tax. The ordinance calls for the City to establish a Measure O Citizens’ Oversight Committee.

The ordinance states that the measure will be “subject to a clear system of accountability, including public audits and disclosures of all funds spent to ensure that all funds are spent properly” and “include strict Citizen Oversight, giving an independent voice in overseeing the measure’s funds”. This report discusses the implementation of Measure O specifically as it relates to the formation of a Citizens’ Oversight Committee, its purpose, composition, structure and other related committee matters.

The attached resolution provides a suggested structure and organization of the Measure O – Citizens’ Oversight Committee. Major topics included in the Oversight Committee policy include the following:

• Purpose of the Oversight Committee

• Member composition and term of office
• Scope of responsibilities and authority
• Committee structure and applicability to existing City policies and practices
• Committee meeting schedule and reporting responsibilities

Committee Purpose:

The purpose of the Measure O Citizens’ Oversight Committee will be to review the City’s annual general fund budget, mid-year budget, and year-end audited financial information in regards to the receipt and expenditure of the fiscal year’s one-cent transactions and use (sales) tax revenue. This review will be based on the City’s Measure O Ordinance No. 2897 and input received via the Community Priorities Survey. The committee will communicate its findings to the public and the City Council annually.

Committee Composition:

The Oversight Committee shall consist of seven members. At least one member must represent the business community as an owner or representative of a local business; at least one member must be an active senior resident (age 62 or older); at least two members must have background in finance/accounting; and the remaining three members will be members of the community at-large. All members must be at least 18-years of age and reside within the State of California and be residents or business owners/representatives in the City of Garden Grove. All members shall be registered voters. With seven members, the Committee will provide strong oversight of the Measure O revenues and expenditures without creating the challenges posed by larger committees.

Committee Member Terms of Office:

Pursuant to Garden Grove Municipal Code Section 2.21.012 Terms of Office, the term of office for all members of boards, commissions, and committees shall be from the date of appointment to the date of the first meeting of the City Council following each regular municipal election; provided, however, that a member shall remain in office until his or her successor is appointed or as otherwise set forth herein.

Committee Appointments:

The Committee shall be appointed through the normal City Council Committee/Commission Appointments process. Pursuant to Garden Grove Municipal Code Section 2.21.010, the Mayor, with the approval of the City Council, shall make all appointments to boards, commissions, and committees unless otherwise specifically provided by statute. As with other city commissions and committees, there will be an application required for Measure O Oversight Committee consideration.

Upon approval of the Oversight Committee resolution and adoption of policies, the dates for the filling of the initial oversight committee positions will be the following:

Committee Organization and Use of Existing City Practices:

Staff recommends that the Committee follow all relevant existing City practices in terms of organization and conduct. Specifically, that the Committee:

• Elect the Chair and Vice Chair;
• Operate in accordance with the Ralph M. Brown Public Meetings Act and shall conduct its meetings in accordance with the provisions thereof;
• Operate in accordance with City of Garden Grove - City Council Policy, Commission/Committee Appointments, except where the Measure O Citizens’ Oversight Committee Resolution (Policies) specifically addresses a topic;
• Operate in accordance with City of Garden Grove Administrative Directives or Policies related to Ethics Training for Elected Officials; Appointees to Certain Boards, Commissions, and Committees; and Designated Employees;
• Comply with all State and local mandated conflict of interest/economic interest disclosure requirements, if required by law;
• Receive no compensation for service on the Committee.

Committee Meeting Schedule:

The City’s budget development occurs from January through August; the audited financial statement is typically complete by the end of January; and the mid-year financial report is normally completed in March. Consequently, the Committee will be active from January through August each year with two meetings anticipated annually. The exact meeting schedule (days/times/locations) will be dependent upon the budget preparation schedule, which changes slightly from year to year. No specific hearing dates and times have been established in this resolution in order to allow staff to work with the appointed Committee members to identify days/times that work well for the membership. All Oversight Committee meetings will be public and will be agendized in accordance with the Brown Act.

Committee Reports:

The Committee shall present to the Council, in public session, an annual written report which shall include the following:

• A summary of the Committee’s proceedings and activities during the most recent review period.
• A response to the following questions will be addressed in the annual report:

1. Does the current audited financial information reflect that the Measure O – Public Safety and Vital City Services tax was collected and appropriately spent?
2. Does the City’s General Fund annual budget and CIP plan protect and maintain the City’s core services including public safety?

The report prepared by the Committee documenting their findings and recommendations will be presented to the City Council at a public meeting and will be public record. The report will also be posted on the City’s website.

More detail is provided in the attached Measure O – Citizens’ Oversight Committee Policies.

No direct costs, although there will be indirect soft costs associated with staff support of the Oversight Committee.

It is recommended that the City Council:

• Adopt a Resolution defining the composition of the Measure O – Citizens’ Oversight Committee, its purpose, terms of office, scope of responsibilities and other related matters.