Addendum with Attachments
PREPARED BY: Arn Andrews
Assistant Town Manager
Reviewed by: Town Manager, Finance Director, and Town Attorney
110 E. Main Street Los Gatos, CA 95030 ● 406-354-6832
www.losgatosca.gov
TOWN OF LOS GATOS
COUNCIL AGENDA REPORT
MEETING DATE: 8/6/2019
ITEM NO: 7
ADDENDUM
DATE: August 5, 2019
TO: Mayor and Town Council
FROM: Laurel Prevetti, Town Manager
SUBJECT: Adoption of Revised Enabling Resolutions for the Sales Tax Oversight
Committee and Finance Committee Respectively to Allow for Finance
Committee Members to Serve as Sales Tax Oversight Committee Members
when Vacancies exist, and Rescission of Resolutions 2018-056 and 2017-008
REMARKS:
Attachment 6 contains public comment received after the distribution of the staff report and
before 11:00 a.m. August 5, 2019.
While the Measure G Sales Tax Ordinance 2274 was explicit that the Town Council has the sole
discretion over “The number, qualifications and duties of Committee members…”, staff is
providing updated revisions to the enabling Resolutions (Attachments 7 and 8) to avoid
additional confusion among the electorate and to facilitate the efficient convening of the Sales
Tax Oversight Committee. Staff recommends that the Town Council consider adopting the
Resolutions contained in Attachments 7 and 8.
Attachments:
1. Measure G Ordinance 2274
2. Sales Tax Oversight Committee Resolution 2018-056
3. Finance Committee Resolution 2017-008
4. Draft Revised Enabling Resolution for the Sales Tax Oversight Committee Redline
5. Draft Revised Enabling Resolution for the Finance Committee Redline
Attachments distributed with this Addendum:
6. Public comment received after the distribution of the staff report and before 11:00 a.m.
August 5, 2019.
PAGE 2 OF 2
SUBJECT: Adoption of Revised Enabling Resolutions for the Sales Tax Oversight Committee
and Finance Committee Resolutions Respectively to Allow for Finance
Committee Members to Serve as Sales Tax Oversight Committee Members when
Vacancies exist, and rescission of Resolutions 2018-056 and 2017-008
DATE: August 5, 2019
7. Updated Draft Revised Enabling Resolution for the Sales Tax Oversight Committee
Redline
8. Updated Draft Revised Enabling Resolution for the Finance Committee Redline
From: Phil Koen <pkoen@monteropartners.com>
Sent: Friday, August 02, 2019 11:56 AM
To: Steven Leonardis <SLeonardis@losgatosca.gov>; Marcia Jensen <MJensen@losgatosca.gov>; Marico
Sayoc <maricosayoc@gmail.com>; BSpector <BSpector@losgatosca.gov>; Rob Rennie
<RRennie@losgatosca.gov>
Cc: Laurel Prevetti <LPrevetti@losgatosca.gov>; Robert Schultz <RSchultz@losgatosca.gov>;
jvannada@gmail.com; Maria Ristow <ristows@comcast.net>; tduryea@aol.com; Rick Tinsley
<rnt97@yahoo.com>; leefagot@gmail.com; vlado.herman@gmail.com; melaniehanssen@yahoo.com;
Lee Quintana <leeandpaul@earthlink.net>; Peter Hertan <phertan@yahoo.com>; Rick Van Hoesen
(rick.vanhoesen@gmail.com) <rick.vanhoesen@gmail.com>; eclendaniel@bayareanewsgroup.com;
sandydeckerinlg@gmail.com
Subject: Agenda Item 7 - Council meeting August 6, 2019
Dear Honorable Mayor and Council Members,
I am extremely concerned about the changes being proposed by the Staff. I urge the Council to reject
this poorly conceived and potentially illegal proposal and instruct the Staff to increase their recruiting
efforts and to fully comply with the specific terms of Measure G and Resolution 2018 - 056.
Embedding two Council members on the Sales Tax Oversight Committee, by way of their membership
on the Finance Committee, does not make this an independent citizen committee. Establishing an
independent citizen Oversight Committee was a core requirement of Measure G. The Town Manager
clearly states this in the Background section of her staff memo. Simply because the Town is finding it
“challenging” to fill the independent citizen oversight committee is not a reason to gut the oversight
mandate in Measure G. This is deeply troubling and goes against the oversight responsibility that was
mandated by voters.
Secondly, Resolution 2018-056 which established the Sales Tax Oversight specifically states in Section
11 that “prior to the Town’s expenditure of any Sales Tax revenues, the Los Gatos Sales Tax Oversight
Committee shall review the Town’s proposed expenditures and advise the Town Council on whether
such expenditures meet the Town Council’s objectives stated in Ordinance 2274 and Measure G”. How
can Council members on the Sales Tax Oversight Committee advise themselves as members of the Town
Council? Clearly this poses a major conflict of interest for the two members on the Oversight Committee
who are also Council Members.
Lastly, I want to draw the Council’s attention to the specific requirement imposed by section 11 of
Resolution 2018-056. The Town is absolutely precluded from expending any Sales Tax revenues until the
Sales Tax Oversight Committee has reviewed and advised the Council as to whether such proposed
expenditures meet the Town Council’s objectives.
In summary, the Staff’s proposal seems to be a blatant end run around an independent citizen lead
oversight role that was approved by the voters. The sole reason given by the Staff to justify this end run
is that filling the available positions is “challenging”. Frankly this appears to be of their own making and
is not a compelling reason to ignore the will of voters.
I urge this Council to reject this proposal, comply with the wishes of the voters, and instruct the Staff to
aggressively recruit qualified candidates.
Thank you.
Phil Koen
ATTACHMENT 6
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Resolution
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ATTACHMENT 7
DRAFT RESOLUTION
A RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS, CALIFORNIA
RESCINDING RESOLUTION 2018-056 AND ADOPTING A REVISED ENABLING
RESOLUTION TO, ESTABLISHING A SALES TAX OVERSIGHT COMMITTEE
WHEREAS, on June 19, 2018 the Los Gatos Town Council adopted Ordinance No. 2274
imposing a General Transaction and Use Tax (“Ordinance 2274”) for a period of twenty years.
WHEREAS, the purpose of the Ordinance 2274 is to impose a local one-eighth cent (0.125%)
sales tax on retail transactions (“Sales Tax”) within the town limits of the Town of Los Gatos;
and
WHEREAS, on November 6, 2018, the citizens of the Town approved imposition of the Sales
Tax by approving ballot Measure G on the November 6, 2018 ballot; and
WHEREAS, Ordinance 2274 and Measure G state that funds raised from the Sales Tax shall
be used to fund essential Town services such as maintaining neighborhood police patrols;
improving traffic flow to reduce congestion; repairing potholes and fixing neighborhood streets;
and maintaining the Town' s long -term financial stability; and
WHEREAS, the Ordinance 2274 and Measure G require Citizens Oversight, mandatory
financial audits, and yearly reports to the community to ensure funds are spent as promised;
and
WHEREAS, in accordance with the provisions of Section 2.60.140 of Ordinance 2274, the
Town Council shall appoint a Committee to advise the Town Council on the expenditures
funded by the Sales Tax revenues in order to ensure that said revenues are spent in accordance
with the Town Council objectives stated in Ordinance 2274 and Measure G.; and
WHEREAS, on December 18, 2018, the Town Council adopted Resolution 2018-056 to
establish the Sales Tax Oversight Committee; and
WHEREAS, the Town needs a viable Committee structure to ensure the Sales Tax Oversight
Committee can meet and fulfill its obligations.
NOW, THEREFORE, BE IT RESOLVED, that the Los Gatos Town Council orders as follows:
Section 1. The Town Council hereby establishes the Town of Los Gatos Sales Tax Oversight
Committee pursuant to Ordinance 2274 and Measure Grescinds Resolution 2018-056.
Section 2. The Town Council hereby adopts a revised enabling Resolution to establish the Town
of Los Gatos Sales Tax Oversight Committee pursuant to Ordinance 2274 and Measure G.
Resolution
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ATTACHMENT 7
Section 23. The Los Gatos Sales Tax Oversight Committee shall consist of a minimum of five
seven (57) members.
Section 43. The members of the Los Gatos Sales Tax Oversight Committee shall be appointed
by a majority vote of the Town Council.
Section 45. Each member of the Los Gatos Sales Tax Oversight Committee shall, on the date of
appointment and throughout the member’s term on the Los Gatos Sales Tax Citizens Oversight
Committee, be a resident of the Town of Los Gatos.
Section 65. The term of each member of the Los Gatos Sales Tax Oversight Committee shall
be four (4) years.
Section 76. The terms of office of the resident members of the Los Gatos Sales Tax Oversight
Committee shall be staggered and over lapped in such a manner that the terms of no more
than one-third of the members expire each year.
Section 87. The Town Council shall fill any resident member vacancies of the Los Gatos Sales
Tax Oversight Committee occurring during the term of the Committee. In the event there are
insufficient applicants for the Town Council to fill Committee vacancies, the resident members
of the Town’s Finance Committee may fill those vacancies so a Sales Tax Oversight Committee
meeting can be convened.
Section 98. The members of the Los Gatos Sales Tax Oversight Committee shall serve without
compensation, provided that with advance budgetary approval of the Town Council, the actual
and necessary expenses (if any) incurred by the members in the conduct of Town business shall
be reimbursable pursuant to the provisions of the current Administrative Policy.
Section 109. The Los Gatos Sales Tax Oversight Committee shall meet semi-annually and all
meetings shall be noticed and conducted in accordance with the applicable provisions of the
Brown Act and Robert’s Rules of Order and Town Policies established for Commissions and
Committees.
Section 110. Minutes of the actions taken during the Los Gatos Sales Tax Oversight Committee’s
meetings shall be kept and shall be a public record.
Section 121. The function of the Los Gatos Sales Tax Oversight Committee shall be to serve in
an advisory capacity to the Town Council. Prior to the Town’s expenditure of any Sales Tax
revenues, the Los Gatos Sales Tax Oversight Committee shall review the Town’s proposed
expenditures and advise the Town Council on whether such expenditures meet the Town
Council’s objectives stated in Ordinance 2274 and Measure G. It shall not be within the purview
of the Sales Tax Oversight Committee to direct staff, recommend any particular contract or
project but only to determine whether such expenditures meet the Town Council’s objectives
stated in Ordinance 2274 and Measure G. In addition, the final determination o f whether such
expenditures meet the Town Council’s objectives and the approval of any such expenditure
Resolution
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ATTACHMENT 7
shall be made by Town Council. The Los Gatos Sales Tax Oversight Committee shall issue an
annual public report of the expenditures and appropriations of the Sales Tax revenues which
were approved by the Town Council during the applicable fiscal year. The Los Gatos Sales Tax
Oversight Committee shall undertake such other and additional duties as the City Council may
direct.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 6th day of August, 2019 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
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Draft Resolution ATTACHMENT 8
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DRAFT RESOLUTION
RESOLUTION OF THE TOWN COUNCIL OF THE TOWN OF LOS GATOS
RESCINDING RESOLUTION 2017-008 AND ADOPTING REVISED ENABLING
RESOLUTION TO ESTABLISHING THE TOWN COUNCIL FINANCE COMMITTEE
WHEREAS, the Town Council of the Town of Los Gatos has determined that there is
a need for adult resident input to Council and staff regarding financial policy issues, and to
promote citizens participation and understanding regarding the financial condition of the
Town; and
WHEREAS, the Town Council of the Town of Los Gatos does hereby establish the
terms and conditions for citizen appointment to and conduct of the Town Council Finance
Committee. The Committee is advisory to the Town Council and operates in the manner
herein after prescribed; and
WHEREAS, on March 7, 2017, the Town Council adopted Resolution 2017-008 to
establish the Council Finance Committee; and
WHEREAS, the Council Finance Committee contains the necessary expertise to
support the Town’s Sales Tax Oversight Committee; and
WHEREAS, the Town needs a viable Committee structure to ensure the Sales Tax
Oversight Committee can meet and fulfill its obligations.
WHEREAS, the Council Finance Committee shall be formed, convened, and
governed by the following bylaws as adopted by the Town Council:
A.The Town Council Finance Committee shall consist of five (5) members - two (2)
Town Council Members as voting members, appointed annually by the Mayor, and
three (3) adult residents as non-voting members, appointed by the Town Council,
whose term of office shall be for three (3) years with no limitations on
reappointments.
B.A quorum shall consist of the two voting Council Members. The resident members
of the Finance Committee shall participate in all meetings.
Draft Resolution ATTACHMENT 8
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C.Resident applicants shall follow the Town's standard recruitment and selection
process and shall have the following qualifications to serve on the Council Finance
Committee:
1.Resident of Los Gatos and a registered voter;
2.Five years of experience in at least one of the following:
a.Financial experience in a corporate, business, or government setting;
b.Principal or officer at a financial auditing firm;
c.Investment banking;
d.Finance or budget management;
e.Certified public accountant (CPA)
D.The terms of office of the resident members shall be staggered and overlapped in
such a manner that the terms of no more than one -third of the members expire
each year.
E.Resident members shall conform with all current Town Resolutions and Policies.
F.The Town Council shall fill any resident member vacancies occurring during the
term of the Committee.
G.The members of the Committee shall serve without compensation, provided that
with advance budgetary approval of the Town Council, the actual and necessary
expenses (if any) incurred by the members in the conduct of Town business shall be
reimbursable pursuant to the provisions of the current Administrative Policy.
H.The Committee shall establish a regular time and location for its meetings and shall
conduct its meetings in compliance with the provisions of the Ralph M. Brown Act
(Government Code Sections 54950).
I.Minutes of the actions taken during the Committee's meetings shall be kept and
shall be a public record.
J.The function of the Committee shall be to serve in an advisory capacity to the Town
Council regarding the following:
1.Annual review of the Town's investment policy;
2.Annual review of the independent financial audit (Comprehensive Annual
Financial Report);
3.Annual review of and potential recommendations to address the Town's
CalPERS unfunded pension and Other Post-Employment Benefits (OPEB)
liabilities;
4.Annual review of proposals and make recommendations regarding
new and increased revenue sources;
5.In the event the Town’s Sales Tax Oversight Committee does not have
the required fiveseven (57) members, the Council Finance Committee
resident members will serve as members of theat Sales Tax Oversight
Committee.
Draft Resolution ATTACHMENT 8
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5.6. Special projects as directed by the Town Council, Town Manager,
or Finance Director.
K.It is not the purpose of the Committee to advise on regular or routine
financial administration, nor to become involved in other than the
financial impact of the projects/programs they are asked to review.
NOW, THEREFORE, BE IT RESOLVED, that the Town Council Finance Committee is
hereby established as an advisory committee to the Los Gatos Town Council.
PASSED AND ADOPTED at a regular meeting of the Town Council of the Town of Los
Gatos, California, held on the 6th day of August, 2019 by the following vote:
COUNCIL MEMBERS:
AYES:
NAYS:
ABSENT:
ABSTAIN:
SIGNED:
MAYOR OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
ATTEST:
TOWN CLERK OF THE TOWN OF LOS GATOS
LOS GATOS, CALIFORNIA
DATE: __________________
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