Sales Tax Oversight Board

SALES TAX OVERSIGHT BOARD Sales Tax Oversight Board Minutes MONDAY, DECEMBER 19, 2022 – 5:30 PM Mr. Newton called the meeting to order at 5:30pm. Roll Call of Councilmembers Present: Ardito, Bortle, Downing, Heath, & Newbold Mr. Newton suggested that the Board approve the agenda with item number 4A being heard prior to the consent calendar. 1. APPROVAL OF AGENDA: Moved by Downing; seconded by Ardito to approve the agenda with the suggested change. Motion Carried: 5 - 0 Voting For: Ardito, Bortle, Downing, Heath, Newbold Voting Against: None 2. BUSINESS FROM THE FLOOR: No public comment. 4.A Consider the appointment of Chair and Vice Chair for the 2023 Calendar Year. Item moved during agenda approval. Mr. Newton explained the process of nominating a Chair and Vice Chair for the Board. Ms. Newbold nominated Mr. Ardito for Chair, he declined. Mr. Bortle nominated Ms. Heath for Vice Chair, she declined. Mr. Ardito nominated Mr. Downing as Chair, seconded by Ms. Newbold. Motion carried unanimously. Ms. Heath nominated Mr. Bortle, seconded by Mr. Ardito. Motion carried unanimously. 3. CONSENT CALENDAR: 3.A Minutes of the Sales Tax Oversight Board's November 28, 2022, regular meeting. 221128stob.min.draft.pdf Motion to waive oral reading and approve minutes of the Sales Tax Oversight Board's November 28, 2022, regular meeting. Moved by Bortle; seconded by Ardito to approve. Motion Carried: 5- 0 Voting For: Ardito, Bortle, Downing, Heath, Newbold Voting Against: None 4. NEW BUSINESS: 4.A Consider the appointment of Chair and Vice Chair for the 2023 Calendar Year. Item heard following Business from the Floor. 4.B Consider the City of Susanville Sales Tax Oversight Board Governance Practices Mr. Newton presented draft governance practices to the Board for review. He stated that he researched other jurisdictions that have a Sales Tax Oversite Board, and he drafted the Goverance Practices based on those areas. He stated that there are three times throughout

the year where the Board is charged with reviewing the budget. Those times being the annual budget proposal to City Council, the mid-year budget review proposal to City Council and the Year End Final Expenditure review. He added that someone will have to write a report for Council review and continued with the review of the entire document. Ms. Heath asked if the governance practices help establish the procedures for future boards. Chair Downing also responded that yes, this document would establish meeting standards but, as a Board, they could be altered when needed. Vice Chair Bortle stated that he agreed with everything in the document however, he had concerns with the frequency of the meetings on the front end to which Mr. Newton responded that the document specifies regular meetings, but special meetings can also be called when needed. Boardmember Ardito inquired as to whether they would offer the report before or after the Council adopts the annual budget. Mr. Newton responded that before the budget is approved, staff should be able to include the report findings within the STOB report into the budget. Chair Downing requested that staff draft the report with input from the Board. The Board agreed unanimously. It was added that it should also state that city staff will prepare the report in the format approved by the STOB for STOB's final review and approval. Chair Downing also inquired as to whether staff should be live streaming the meetings. The Board agreed that it should be but asked about the capability of doing so. Mr. Newton responded that there are limitations with the current system but, added that staff is currently working with IT in Redding to get upgrades to make the streaming more stable. Boardmember Heath inquired as to who she would ask questions if she had them, who is the Board permitted to talk to. Mr. Newton responded that there is a line between asking questions and providing direction. There should not be an issue as there is no direction, only recommendations, coming from the Board. He added that both he and Ms. Jabbs would be contacts. He also went into how items get on the agenda. As a board, he stated that the Boardmembers could request items to be placed on the agenda. Ms. Heath asked how the report should be written to which Mr. Newton stated that he would start by reviewing the Ordinance. Ms. Heath requested clarity as to what the Board’s role is. For instance, the intent of the tax is that it should be used on the three items (Public Safety, Streets and Economic Development) as previously discussed. Mr. Newton responded yes; however, the Council could opt to spend the money on something else as it is a general tax, not a special tax. If the Council does choose to spend it elsewhere, the Board could address that in the report provided to the Council.

Mr. Newton inquired as to whether or not the Board had additional areas they wanted to review. Boardmember Ardito inquired as to how the money will be split out from the other city monies to which Ms. Jabbs provided an explanation. Mr. Newton offered that a narrow focus may be better for them at first instead of reviewing too much information. Boardmember Heath requested that information be broken down in a very easy way so that everyone will understand what the city has done. Chair Downing offered that it can be included in the report, perhaps an attachment that is placed in bulletpoint structure for easy review. Boardmember Ardito requested to see a sample report from another jurisduction. Boardmember Ardito also asked if they will be able to see what each department does with the money provided to them from the Measure P funding. Mr. Newton stated that police, fire, etc... will not be reconciled individually so, we may not know all of the spending as there are other funds going into their fund as well. A review of the entire document occurred to find any additional items needing to be changed. Mr. Newton made changes as requested. Motion to recommend that the City Council approve the Sales Tax Oversight Board Governance Practices as provided in the staff report OR as amended at the meeting. Moved by Heath; seconded by Bortle to approve. Motion Carried: 5- 0 Voting For: Ardito, Bortle, Downing, Heath, Newbold Voting Against: None 4.C California Public Meeting Law / Brown Act Information Margaret Long, City Attorney, provided a brief presentation of the Brown Act and what the Board's requirements are. She also reviewed the requirements of the FPPC as well as the Conflict of Interest Code, Rosenberg's Rules of Order, etc... Chair Downing inquired as to whether or not FPPC filings are required. He then requested that tonight's presentation be provided to the board so they can access the links. 5. CONTINUING BUSINESS: 5.A Receive Presentation on City Budget Chair Downing stepped away at 7:05pm and returned at 7:07pm. Ms. Jabbs provided financial documents for review and stated that the Council does not review line items but, instead sees a "broad overview" at the fund level. She reviewed the difference between the revenues and expediture numbers and overall, how to read the documents provided. She provided a discription of how the city pools cash, transfers

funds and other information that would help the Board understand the workings of the budget. Ms. Jabbs then reviewed last year's mid-year budget review. Mr. Newton provided information to the Board stating that there is a video on each department on Facebook regarding the budgets as well. Vice Chair Bortle asked how much the city actually had in reserves to which Mr. Newton stated approximately $1.4 million. However, he added that it is typically earmarked for something else. The Council would have to approve it to be spent on something. He added that there is also a rate stabalization fund and available operating funds. Chair Downing inquired as to whether Vice Chair Bortle was concerned with the pooled cash to which he responded no, he just wanted to understand how it works. Ms. Jabbs also pulled up a cash balance sheet to show the Board exactly where the city money currently is. Mr. Newton provided an explanation of how the city charges enterprise funds for items where a nexis can be shown. Boardmember Ardito asked if the departments had a wishlist for items that they need/want since the measure passed. Mr. Newton responded that the city was looking at a $1.2 million deficit this year. Wants or needs were not reviewed because staff has only been looking at ways to cut costs. The tax will bring in a bit more than the $1.2 million but, it would be bad if after the increase, a deficit budget comes back next year. He did state that the Police Department is typically low, but they are currently fully staffed and just recieved a raise. 6. ADJOURNMENT: Chair Downing stated that the next meeting would be on MLK day so suggested the Board meet the Monday the 23rd instead to which everyone agreed. Moved by Bortle; seconded by Heath to adjourn at 8:01pm. Motion Carried: 5 - 0 Voting For: Ardito, Bortle, Downing, Heath, Newbold Voting Against: None __________________________ Tom Downing, Chair Respectfully submitted by: ____________________________ Approved on January 23, 2023 Heidi Whitlock, City Clerk

CALL TO ORDER ROLL CALL 1. APPROVAL OF AGENDA: (Additions and/or Deletions) 2. BUSINESS FROM THE FLOOR: Any person may address the Board at this time upon any subject on the agenda or not on the agenda within the jurisdiction of the Board. However, comments on items on the agenda may be reserved until the item is discussed and any matter not on the agenda that requires action will be referred to staff for a report and action at a subsequent meeting. Presentations are subject to a five-minute limit. 3. CONSENT CALENDAR: All matters listed under the Consent Calendar are considered to be routine by the Board. There will be no separate discussion on these items. Any member of the public or the Board may request removal of an item from the Consent Calendar to be considered separately. 3.A Minutes of the Sales Tax Oversight Board's November 28, 2022 regular meeting. 4. NEW BUSINESS: 4.A Consider the appointment of Chair and Vice Chair for the 2023 Calendar Year. 4.B Consider the City of Susanville Sales Tax Oversight Board Governance Practices 4.C California Public Meeting Law / Brown Act Information 5. CONTINUING BUSINESS: 5.A Receive Presentation on City Budget 6. ADJOURNMENT: The next meeting of the Board to be determined. Reports and documents relating to each agenda item are on file in the Office of the City Clerk and are available for public inspection during normal business hours and at the meeting. These reports and documents are also available at the City’s website www.cityofsusanville.net, unless there were systems problems posting to the website. Accessibility: An interpreter for the hearing-impaired may be made available upon request to the City Clerk seventy-two hours prior to a meeting. A reader for the vision-impaired for purposes of reviewing the agenda may be made available upon request to the City Clerk. The location of this meeting is wheelchair-accessible. CITY OF SUSANVILLE 66 N. Lassen Street • Susanville CA Tony Ardito • Curtis Bortle • Tom Downing • Rita Heath • Jan Newbold Sales Tax Oversight Board Sales Tax Oversight Board • City Council Chambers 66 N. Lassen Street, Susanville, CA 96130 Monday, December 19, 2022 – 5:30 PM

I, Heidi Whitlock, certify that I caused to be posted notice of the meeting scheduled for December 19, 2022 in the areas designated on December 16, 2022.

CALL TO ORDER ROLL CALL 1. APPROVAL OF AGENDA: (Additions and/or Deletions) 2. BUSINESS FROM THE FLOOR: Any person may address the Board at this time upon any subject on the agenda or not on the agenda within the jurisdiction of the Board. However, comments on items on the agenda may be reserved until the item is discussed and any matter not on the agenda that requires action will be referred to staff for a report and action at a subsequent meeting. Presentations are subject to a five-minute limit. 3. CONSENT CALENDAR: All matters listed under the Consent Calendar are considered to be routine by the Board. There will be no separate discussion on these items. Any member of the public or the Board may request removal of an item from the Consent Calendar to be considered separately. 3.A Minutes of the Sales Tax Oversight Board's November 28, 2022 regular meeting. 4. NEW BUSINESS: 4.A Consider the appointment of Chair and Vice Chair for the 2023 Calendar Year. 4.B Consider the City of Susanville Sales Tax Oversight Board Governance Practices 4.C California Public Meeting Law / Brown Act Information 5. CONTINUING BUSINESS: 5.A Receive Presentation on City Budget 6. ADJOURNMENT: The next meeting of the Board to be determined. Reports and documents relating to each agenda item are on file in the Office of the City Clerk and are available for public inspection during normal business hours and at the meeting. These reports and documents are also available at the City’s website www.cityofsusanville.net, unless there were systems problems posting to the website. Accessibility: An interpreter for the hearing-impaired may be made available upon request to the City Clerk seventy-two hours prior to a meeting. A reader for the vision-impaired for purposes of reviewing the agenda may be made available upon request to the City Clerk. The location of this meeting is wheelchair-accessible. CITY OF SUSANVILLE 66 N. Lassen Street • Susanville CA Rita Heath • Jan Newbold • Tom Downing • Curtis Bortle • Tony Ardito Sales Tax Oversight Board Sales Tax Oversight Board • City Council Chambers 66 N. Lassen Street, Susanville, CA 96130 Monday, December 19, 2022 – 5:30 PM 1

I, Heidi Whitlock, certify that I caused to be posted notice of the meeting scheduled for December 19, 2022 in the areas designated on December 16, 2022. 2

AGENDA ITEM NO. 3.A Action Item Submitted By: Heidi Whitlock, Administrative Services Action Date: December 19, 2022 SUBJECT: Minutes of the Sales Tax Oversight Board's November 28, 2022 regular meeting. PRESENTED BY: Dan Newton, City Administrator SUMMARY: Attached for review are the minutes of the Sales Tax Oversight Board's November 28, 2022 regular meeting. FISCAL IMPACT: None. ACTION REQUESTED: Motion to waive oral reading and approve minutes of the Sales Tax Oversight Board's November 28, 2022 regular meeting. SALES TAX OVERSIGHT BOARD AGENDA ITEM ATTACHMENTS: 221128stob.min.draft.pdf 3

SALES TAX OVERSIGHT BOARD Sales Tax Oversight Board Minutes MONDAY, NOVEMBER 28, 2022 – 5:30 PM Mr. Newton called the meeting to order at 5:33pm. He provided a brief explanation of what will be discussed and offered that this board is subject to the Brown Act. Roll Call of Councilmembers Present: Tony Ardito, Curtis Bortle, Tom Downing, Rita Heath, Jan Newbold 1. APPROVAL OF AGENDA: Moved by Downing; seconded by Ardito to approve. Motion Carried: 5 - 0 Voting For: Ardito, Bortle, Downing, Heath, Newbold Voting Against: None 2. BUSINESS FROM THE FLOOR: Mr. Newton stated that, as this Board is subject to the Brown Act, a public comment area is required. No public comment received. 3. NEW BUSINESS: A Discussion regarding Sales Tax Oversight Board's responsibilities and expectations Mr. Newton stated that the goal of staff is to have the meeting move forward in two ways. One would be the establishment of the members, to positions, the meeting schedule, etc.. The other goal is to start the review of the budget. Mr. Newton reviewed Resolution No. 22-5970 and mentioned the important notes including how the tax is a general tax, not a special tax, and can be used for any city business. However, the advisory committee was requested to assist in keeping the intent of the tax. The intent includes items such as public safety, streets, and economic development. Mr. Newton stated that items would be brought to the committee to review and then they would provide a report/recommendation to council. Ms. Heath asked if there was a set percentage to each area of intent to which Mr. Newton responded no, being that it is a general tax, it can be spent anywhere; however, it can be reported to council and recommendations can be made for consideration. Mr. Newton stated the money from Measure P funding should be set up to be tracked and shown to the Committee to show transparacy. Mr. Bortle stated that it appears that the advisory board is a watch dog committee for the public. He added that they would be shown the spending that has occurred to review and, if the spending is not done in the way the Board thinks the city should, they would report and make a recommendation to the Council. Mr. Ardito commented that it appeared that this would be reactive instead of proactive and inquired as to why they, as the Board, could not state how they would recommend the money be spent. 4

Mr. Downing responded that it was his believe that the role of the Board is to verify that enough information is being shared with the public to be transparent and not to state what the funds need to be spent on. Mr. Bortle agreed and added that the Board is in place to show that there is another level of oversite on the spending but, it is the council's place to decide where funds are spent. Mr. Newton responded that this is new right now and the city wants to ensure it is being set up correctly and that something is in place that will remain once staff and board members change. He added that staff envisions two pots of money. He wants to be able to state which pot is which meaning, if there is a surplus, is it in the Measure P pot or the "other" General Fund pot. Chandra Jabbs, Finance Manager, provided a brief overview of what is typically budgeted to different departments specifically mentioning the Fire and Police Departments. Mr. Newton also reveiwed the change of setting up seperate funds for both Police and Fire and talked about the vacancy rate. He added that, when there is a surplus, it stays in their fund and encourages savings. Mr. Newton reviewed the cash report, the restricted funds vs. nonrestricted funds and provided a few explanations. Mr. Bortle inquired about the SB1 funding and details regarding a match of funding requirement to which Mr. Newton responded. Mr. Newton paused to ask if anyone had any questions and stated that all of the attachments can be sent to the board and if there were additional questions, they can reach out to him. No comments. Mr. Newton read the language in Measure Q and asked if there any additional questions regarding the measure. Mayor McCourt addressed the Board from the audience and stated that people will ask them questions and they will be able to respond. He also added that the meetings will eventually be livestreamed which will help with transparancy. Mr. Newton requested to know when to meet again, and who would be the Chair and Vice Chair if that is the terminology the Board is going with. The Board discussed the location and concerns with the meetings being welcoming so the public will attend. It was the consensus of the Board to meet in the Council Chambers but, to create a round table area and not use the dais. Mr. Bortle stated that there will still need to be a Chair and Vice Chair since it's a Brown Act board. Ms. Heath inquired as to who responds to questions from the public. 5

Mr. Newton responded that, due to the Brown Act, if it is a question related to an agendized item, then the board can respond. However, he will be in attendance at all of the meetings, and they can recommend that he respond. Mr. Bortle stated that the manner in which the Board discusses items will set the tone of the meetings. Mr. Newton recommended that the roles for Chair and Vice Chair be set to make it easier for whoever fills those roles. He added that staff can bring an item back at the next meeting and then go to council to be approved once approved by this Board. Ms. Heath stated that she wanted to avoid bureaucracy and wanted to be able to move things forward. Mr. Newton responded that the city also sees the importance of moving this forward, which is why staff suggested a two spoke approach and is discussing both meeting details and the budget tonight. Mr. Downing inquired about training and what the Board can and cannot talk about and when. Mr. Newton responded that the board cannot talk to more than one other Board member about any topic as an individual member cannot know what the majority of the board is thinking. He stated that he, at the staff level, can know what everyone is thinking but, he cannot share with the board members. Mr. Downing inquired about future meetings. Mr. Newton responded that there is a need to come up with a way to identify the two pots of money. He added that staff and the Board will want to discuss that at the next meeting as there will be changes needed already to the mid-year budget. Mr. Downing inquired as to how the city would suggest the structure to be set up and suggested the Board do so in order to keep moving forward. Mr. Bortle suggested Rosenburg’s Rules of Order. Ms. Heath asked if the Board can choose now, to which Mr. Newton stated yes, and no. Since it is not agendized no action can be taken; however, it can come back at the next meeting to approve as well as the appointment of the chair and vice chair. It was the consensus to meet again on December 19, 2022, at 5:30pm. 22-1035 Tax Measure.pdf 4. CONTINUING BUSINESS: No business. 5. ADJOURNMENT: Moved by Downing; seconded by Ardito to approve adjourning at 6:39pm. Motion Carried: 5 - 0 Voting For: Ardito, Bortle, Downing, Heath, Newbold Voting Against: None 6

_________________________ , Chair Respectfully submitted by: ________________________________ Approved on: Heidi Whitlock, City Clerk 7

AGENDA ITEM NO. 4.A Action Item Submitted By: Heidi Whitlock, Administrative Services Action Date: December 19, 2022 SUBJECT: Consider the appointment of Chair and Vice Chair for the 2023 Calendar Year. PRESENTED BY: Dan Newton, City Administrator SUMMARY: The Sales Tax Oversight Board is in need of a Chairperson and Vice Chairperson to serve during the 2023 calendar year. At this time, appointments to this position will be accepted. FISCAL IMPACT: None ACTION REQUESTED: Appoint Chair and Vice Chair for the 2023 Calendar Year SALES TAX OVERSIGHT BOARD AGENDA ITEM ATTACHMENTS: 8

AGENDA ITEM NO. 4.B Action Item Submitted By: Dan Newton, Administrative Services Action Date: December 19, 2022 SUBJECT: Consider the City of Susanville Sales Tax Oversight Board Governance Practices PRESENTED BY: Dan Newton, City Administrator SUMMARY: As a newly created advisory board, the Sale Tax Oversight Board has an opportunity to recommend that City Council adopt a resolution memorializing the governance of STOB. Relevant items include: 1) The roles of the Chair and Vice Chair 2) Meeting Schedule 3) Meeting Rules of Order Consider providing a recommendation to City Council to adopt the a resolution establishing the City of Susanville Sales Tax Oversight Board Governance Practices. A DRAFT Governance Practices document is provided for the Board's review and consideration. FISCAL IMPACT: None ACTION REQUESTED: Motion to recommend that the City Council approve the Sales Tax Oversight Board Governance Practices as provided in the staff report OR as amended at the meeting. SALES TAX OVERSIGHT BOARD AGENDA ITEM ATTACHMENTS: 9

AGENDA ITEM NO. 4.C Discussion Item Submitted By: Dan Newton, Administrative Services Action Date: December 19, 2022 SUBJECT: California Public Meeting Law / Brown Act Information PRESENTED BY: Dan Newton, City Administrator SUMMARY: As an advisory board appointed by the Susanville City Council, the Sales Tax Oversight Board (STOB) is subject to the provisions of the Ralph M. Brown Act. Margaret Long, City Attorney will provide information to the STOB board members regarding public meeting requirements. FISCAL IMPACT: None. ACTION REQUESTED: Receive Presentation From Margaret Long, City Attorney via Zoom SALES TAX OVERSIGHT BOARD AGENDA ITEM ATTACHMENTS: 10

AGENDA ITEM NO. 5.A Discussion Item Submitted By: Dan Newton, Administrative Services Action Date: December 19, 2022 SUBJECT: Receive Presentation on City Budget PRESENTED BY: Dan Newton, City Administrator SUMMARY: City staff will present line item budgets for information and discussion. Including revenue and expense projections. FISCAL IMPACT: None. ACTION REQUESTED: Discussion item. SALES TAX OVERSIGHT BOARD AGENDA ITEM ATTACHMENTS: 11