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HomeMy WebLinkAboutItem 8c: Resolution 6767: Creation of Citizens' Bond Oversight Committee, Bylaws & Appointments 4 � o Rc„ d,." P C.4 STAFF REPORT Office of the City Manager DATE: April 19, 2011 TO: Mayor and City Council FROM: Don Penman, City Manager SUBJECT: RESOLUTION NO. 6767 ESTABLISHING A CITIZENS' BOND OVERSIGHT COMMITTEE AND APPROVE BYLAWS THEREFOR; AND MAKE APPOINTMENTS TO THE CITIZENS' BOND OVERSIGHT COMMITTEE Recommendation: Adopt SUMMARY On April 11, 2006 the voters of the City of Arcadia approved an $8 million general obligation bond issue for the construction of a grade separation across Santa Anita Avenue to serve the Gold Line Tight rail project. As part of the measure a Citizens' Bond Oversight Committee was recommended and with voter approval the City Council must now appoint the committee. Each Council member is being asked to nominate one person and then the Council can appoint the entire group. Additionally bylaws must be approved which establish the duties and rights of the Committee. DISCUSSION As part of the voter approval of the issuance of bonds for the Santa Anita grade separation project, a Citizens' Bond Oversight Committee was included to satisfy the accountability requirements of the measure. The essential purpose of the Committee is to ensure that the expenditure of bond proceeds is in conformance with the purpose of the bond issue, which is to pay for the construction of the grade separation. The bond measure did not specify the number of committee members so staff is recommending a five member committee, and that each Council member nominate one person and then the entire Council appoints the Committee. The Council could determine to have a different number of Committee members, say three or seven. Given the limited scope of the work of this group, a smaller number such as three would be reasonable as well. In addition to the appointment of a Committee, the City Council is also being asked to approve by -laws which establish the duties and rights of the Committee. For the Council's general information, it is anticipated that bonds for the grade separation will be sold on or around May 10 with a closing on May 24. Mayor and City Council April 19, 2011 Page 2 RECOMMENDATION It is recommended that the City Council adopt Resolution No. 6767 establishing a Citizens' Bond Oversight Committee and approve Bylaws therefor; and make appointments to the Citizens' Bond Oversight Committee. Attachment: Resolution No. 6767 RESOLUTION NO. 6767 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA ESTABLISHING A CITIZENS' BOND OVERSIGHT COMMITTEE AND APPROVE BYLAWS THEREFOR WHEREAS, the City Council of the City of Arcadia (the "City ") previously adopted a resolution calling an election for general obligation bonds (the "Bond Election ") held on April 11, 2006; and WHEREAS, notice of the Bond Election was duly given, and on April 11, 2006, the Bond Election was duly held and conducted for the purpose of voting a measure for the issuance of bonds of the City in the amount of $8,000,000 ( "Bond Measure A "); and WHEREAS, based on the Certificate of Canvass for the City, more than two - thirds of the votes cast on Bond Measure A were in favor of issuing the aforementioned bonds; and WHEREAS, the City Council of the City wishes to establish an independent citizens' bond oversight committee in connection with any issuance of bonds under Bond Measure A and to approve Bylaws governing such committee. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF ARCADIA, CALIFORNIA, DOES HEREBY FIND, DETERMINE AND RESOLVE AS FOLLOWS: SECTION 1. Authorization. Bond Measure A was authorized in accordance with Ordinance No. 6509 (the "Ordinance ") of the City Council. SECTION 2. Establishment of Committee. An independent citizens' bond oversight committee (the "Committee ") is hereby established for the purposes set forth in the Ordinance. 1 SECTION 3. Bylaws. The Bylaws, as submitted herewith and attached hereto, are hereby approved. The Committee shall operate pursuant to the City approved Bylaws. The Committee shall have only those responsibilities granted to them in the Ordinance and in the Bylaws. SECTION 4. Other Actions. Officers of the City and members of the Committee established hereunder are hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which they may deem necessary or advisable in order to give effect to and comply with the terms and intent of this Resolution. SECTION 5. The City Clerk shall certify to the adoption of this Resolution. Passed, approved and adopted this day of , 2011. Mayor of the City of Arcadia ATTEST: City Clerk APPROVED AS TO FORM: P. 14A,c4 Stephen P. Deitsch City Attorney 2 CITIZENS' BOND OVERSIGHT COMMITTEE BYLAWS Section 1. Committee Established. The City of Arcadia (the "City") was successful at the election conducted on April 11, 2006 (the "Bond Election ") in obtaining authorization from the City's voters to issue up to $8,000,000 aggregate principal amount of the City's general obligation bonds ( "Bond Measure A "). Pursuant to Ordinance No. 2214 of the City (the "Ordinance "), the City Council is now obligated to establish the Committee in order to satisfy the accountability requirements of the Ordinance. The City Council of the City of Arcadia (the "City") hereby establishes the Citizens' Bond Oversight Committee (the "Committee ") which shall have the duties and rights set forth in these Bylaws. The Committee does not have legal capacity independent from the City. Section 2. Purposes. The purposes of the Committee are set forth in the Ordinance, and these Bylaws are specifically made subject to the applicable provisions of the Ordinance as to the duties and rights of the Committee. The Committee shall be deemed to be subject to the Ralph M Brown Public Meetings Act of the State of California and shall conduct its meetings in accordance with the provisions thereof. The City shall provide necessary administrative support to the Committee as shall be consistent with the Committee's purposes, as set forth in the Ordinance. The proceeds of general obligation bonds issued pursuant to the Election are hereinafter referred to as "bond proceeds." The Committee shall confine itself specifically to bond proceeds generated under Bond Measure A. Section 3. Duties. To carry out its stated purposes, the Committee shall perform only the following duties: 3.1 Inform the Public. The Committee will review the audits and reports of bond expenditures, and will inform the public concerning the same. In fulfilling this duty, all official communications to either the City or the public shall come from the Chair acting on behalf of the Committee. The Chair shall only release information that reflects the consensus view of the Committee. 3.2 Review Expenditures. The Committee will not have decision - making authority, but will review recommendations to the City Council for expenditure of bond proceeds, and will report on whether such expenditures conform to the purposes stated in the Ordinance and shall review expenditure reports produced by the City to ensure that (a) bond proceeds were expended only for the purposes set forth in Bond Measure A. The Committee shall have no jurisdiction over the following types of activities: (a) Approval of contracts, (b) Approval of change orders, (c) Expenditure of bond funds, (d) Handling of all legal matters, (e) Approval of project plans and schedules, (f) Approval of all maintenance plans, and (g) Approval of the sale of bonds. 3.3 Bond Measure A Project Only. In recognition of the fact that the Committee is charged with overseeing the expenditure of bond proceeds, the City has not charged the Committee with responsibility for: (a) Projects financed through the State of California, developer fees, redevelopment tax increment, certificates of participation, lease /revenue bonds, the general fund or the sale of surplus property without bond proceeds which shall be outside the authority of the Committee. (b) The selection of architects, engineers, soils engineers, construction managers, project managers, CEQA consultants and such other professional service firms as are required to complete the project based on City criteria established by the City Council in its sole discretion. (c) The approval of the design for each project including exterior materials, paint color, interior finishes, site plan and construction methods (modular vs. permanent) which shall be determined by the City in its sole discretion. (d) The selection of independent audit firm(s), performance audit consultants and such other consultants as are necessary to support the Activities of the Committee. (e) The approval of an annual budget for the Committee that is sufficient to carry out its activities. (f) The appointment or reappointment of qualified applicants to serve on the Committee, subject to legal limitations, and based on criteria adopted in the City Council's sole discretion as part of carrying out its function under the Ordinance. Section 4. Authorized Activities. 4.1 In order to perform the duties set forth in Section 3.0, the Committee may engage in the following authorized activities: (a) Receive and review copies of the City's annual independent performance audit and annual independent financial audit as required by California Government Code Section 53412. (b) Inspect facilities and grounds for which bond proceeds have been or will be expended, in accordance with any access procedure established by the City Manager. (c) Review copies of maintenance proposals or plans developed by the City. (d) Review efforts by the City to maximize bond proceeds by implementing various cost - saving measures. 2 Section 5. Membership. 5.1 Number. The Committee shall consist of five (5) residents of the City appointed by majority vote of the City Council based on criteria established by the Ordinance, to wit: Membership should be balanced and should include individuals with business experience, senior citizens, and knowledgeable professionals in the fields of construction, finance, law and accounting. 5.2 Qualification Standards. (a) To be a qualified person, he or she must be at least 18 years of age. (b) The committee may not include any employee, official of the City or any vendor, contractor or consultant of the City. 5.3 Ethics: Conflicts of Interest. By accepting appointment to the Committee, each member agrees to comply with Articles 4 (commencing with Section 1090) and 4.7 (commencing with Section 1125) of Division 4 of Title 1 of the Government Code. Additionally, each member shall comply with the Committee Ethics Policy attached as "Attachment A" to these Bylaws. 5.4 Term. Except as otherwise provided herein, each member shall serve for the duration of the project. 5.5 Appointment. Members of the Committee shall be appointed by the City Council by majority vote. 5.6 Compensation. The Committee members shall not be compensated for their services. 5.7 Authority of Members. (a) Committee members shall not have the authority to direct staff of the City, (b) individual members of the Committee retain the right to address the City, either on behalf of the Committee or as an individual, and (c) the Committee may only request copies of reports and documents which have been previously presented to the City and which are a public record. Section 6. Meetings of the Committee. 6.1 Regular Meetings. The Committee shall meet at least once a year but no more frequently than bi- monthly. 6.2 Location. All meetings shall be held within the boundaries of the City. 6.3 Procedures. All meetings shall be open to the public in accordance with the Ralph M. Brown Act, Government Code Section 54950 et seq. Meetings shall be conducted according to such additional procedural rules as the Committee may adopt. A majority of the number of Committee members shall constitute a quorum for the transaction of any business of the Committee. 3 Section 7. City Support. 7.1 The City shall provide to the Committee necessary technical and administrative assistance as follows: (a) preparation of and posting of public notices as required by the Brown Act, ensuring that all notices to the public are provided in the same manner as notices regarding meetings of the City Council; (b) provision of a meeting room, including any necessary audio /visual equipment; (c) preparation, translation and copies of any documentary meeting materials, such as agendas and reports; and (d) retention of all Committee records, and providing public access to such records on an Internet website maintained by the City. 7.2 Applicable City staff and/or City consultants shall attend Committee proceedings in order to report on the status of projects and the expenditures of bond proceeds. 7.3 No bond proceeds shall be used to provide City support to the Committee. Section 8. Reports. The Committee may report to the City from time to time in order to advise the City on the Activities of the Committee and to comply with the Ordinance. Section 9. Officers. The City Manager shall appoint the initial Chair to serve for the initial Committee meeting, and, thereafter, the Committee shall elect the Chair and Vice -Chair of the Committee. The Vice -Chair shall act as chair only when the Chair is absent. Section 10. Amendment of Bylaws. Any amendment to these Bylaws shall be approved by a majority vote of the City Council. Section 11. Termination. The Committee shall automatically terminate and disband 180 days after all Bond Measure A bond proceeds are spent. Section 12. Conflict with Ordinance. In the event of any conflict between these Bylaws and the Ordinance, the Ordinance shall control. 4 • CITIZENS' BOND OVERSIGHT COMMITTEE ETHICS POLICY STATEMENT This Ethics Policy Statement provides general guidelines for Committee members in carrying out their responsibilities. Not all ethical issues that Committee members face are covered in this Statement. However, this Statement captures some of the critical areas that help define ethical and professional conduct for Committee members. The provisions of this Statement were developed from existing laws, rules, policies and procedures as well as from concepts that define generally accepted good business practices. Committee members are expected to strictly adhere to the provisions of this Ethics Policy. POLICY • CONFLICT OF INTEREST. A Committee member shall not make or influence a City decision related to: (1) any contract funded by bond proceeds or (2) any construction project which will benefit the committee member's outside employment, business, or a personal finance or benefit an immediate family member, such as a spouse, child or parent. • OUTSIDE EMPLOYMENT. A Committee member shall not use his or her authority over a particular matter to negotiate future employment with any person or organization that relates to: (1) any contract funded by bond proceeds, or (2) any acquisition or construction project. A Committee member shall not make or influence a City decision related to any acquisition or construction project involving the interest of a person with whom the member has an agreement concerning current or future employment, or remuneration of any kind. For a period of two (2) years after leaving the Committee, a former Committee member may not represent any person or organization for compensation in connection with any matter pending before the City that, as a Committee member, he or she participated in personally and substantially. Specifically, for a period of two (2) years after leaving the Committee, a former Committee member and the companies and businesses for which the member works shall be prohibited from contracting with the City with respect to: (1) bidding on projects funded by the bond proceeds; and (2) any acquisition or construction project. • COMMITMENT TO UPHOLD LAW. A Committee member shall uphold the federal and California Constitutions, the laws and regulations of the United States and the State of California and all other applicable government entities, and the policies, procedures, rules and regulations of the City of Arcadia; • COMMITMENT TO CITY. A Committee member shall place the interests of the City above any personal or business interest of the member. Attachment "A" CITIZENS' BOND OVERSIGHT COMMITTEE BYLAWS Section 1. Committee Established. The City of Arcadia (the "City ") was successful at the election conducted on April 11, 2006 (the "Bond Election ") in obtaining authorization from the City's voters to issue up to $8,000,000 aggregate principal amount of the City's general obligation bonds ( "Bond Measure A "). Pursuant to Ordinance No. 2214 of the City (the "Ordinance ") , the City Council is now obligated to establish the Committee in order to satisfy the accountability requirements of the Ordinance. The City Council of the City of Arcadia (the "City ") hereby establishes the Citizens' Bond Oversight Committee (the "Committee ") which shall have the duties and rights set forth in these Bylaws. The Committee does not have legal capacity independent from the City. Section 2. Purposes. The purposes of the Committee are set forth in the Ordinance, and these Bylaws are specifically made subject to the applicable provisions of the Ordinance as to the duties and rights of the Committee. The Committee shall be deemed to be subject to the Ralph M Brown Public Meetings Act of the State of California and shall conduct its meetings in accordance with the provisions thereof. The City shall provide necessary administrative support to the Committee as shall be consistent with the Committee's purposes, as set forth in the Ordinance. The proceeds of general obligation bonds issued pursuant to the Election are hereinafter referred to as "bond proceeds." The Committee shall confine itself specifically to bond proceeds generated under Bond Measure A. Section 3. Duties. To carry out its stated purposes, the Committee shall perform only the following duties: 3.1 Inform the Public. The Committee will review the audits and reports of bond expenditures, and will inform the public concerning the same. In fulfilling this duty, all official communications to either the City or the public shall come from the Chair acting on behalf of the Committee. The Chair shall only release information that reflects the consensus view of the Committee. 3.2 Review Expenditures. The Committee will not have decision - making authority, but shall review expenditure reports produced by the City to ensure that bond proceeds were expended only for the purposes set forth in the Bond Measure A. The Committee shall have no jurisdiction over the following types of activities: (a) Approval of contracts, (b) Approval of change orders, (c) Expenditure of bond funds, (d) Handling of all legal matters, (e) Approval of project plans and schedules, (f) Approval of all maintenance plans, and (g) Approval of the sale of bonds. 3.3 Bond Measure A Project Only. In recognition of the fact that the Committee is charged with overseeing the expenditure of bond proceeds, the City has not charged the Committee with responsibility for: (a) Projects financed through the State of California, developer fees, redevelopment tax increment, certificates of participation, lease /revenue bonds, the general fund or the sale of surplus property without bond proceeds which shall be outside the authority of the Committee. (b) The selection of architects, engineers, soils engineers, construction managers, project managers, CEQA consultants and such other professional service firms as are required to complete the project based on City criteria established by the City Council in its sole discretion. (c) The approval of the design for each project including exterior materials, paint color, interior finishes, site plan and construction methods (modular vs. permanent) which shall be determined by the City in its sole discretion. (d) The selection of independent audit firm(s), performance audit consultants and such other consultants as are necessary to support the Activities of the Committee. (e) The approval of an annual budget for the Committee that is sufficient to carry out its activities. (f) The appointment or reappointment of qualified applicants to serve on the Committee, subject to legal limitations, and based on criteria adopted in the City Council's sole discretion as part of carrying out its function under the Ordinance. Section 4. Authorized Activities. 4.1 In order to perform the duties set forth in Section 3.0, the Committee may engage in the following authorized activities: (a) Receive and review copies of the City's annual independent performance audit and annual independent financial audit as required by California Government Code Section 53412. (b) Inspect facilities and grounds for which bond proceeds have been or will be expended, in accordance with any access procedure established by the City Manager. (c) Review efforts by the City to maximize bond proceeds by implementing various cost - saving measures. Section 5. Membership. 5.1 Number. 2 The Committee shall consist of five (5) residents of the City appointed by majority vote of the City Council based on criteria established by the Ordinance, to wit: Membership should be balanced and should include individuals with business experience, senior citizens, and knowledgeable professionals in the fields of construction, finance, law and accounting. 5.2 Qualification Standards. (a) To be a qualified person, he or she must be at least 18 years of age. (b) The committee may not include any employee, official of the City or any vendor, contractor or consultant of the City. 5.3 Ethics: Conflicts of Interest. By accepting appointment to the Committee, each member agrees to comply with Articles 4 (commencing with Section 1090) and 4.7 (commencing with Section 1125) of Division 4 of Title 1 of the Government Code. Additionally, each member shall comply with the Committee Ethics Policy attached as "Attachment A" to these Bylaws. 5.4 Term. Except as otherwise provided herein, each member shall serve for the duration of the project. 5.5 Appointment. Members of the .Committee shall be appointed by the City Council by majority vote. 5.6 Compensation. The Committee members shall not be compensated for their services. 5.7 Authority of Members. (a) Committee members shall not have the authority to direct staff of the City, (b) individual members of the Committee retain the right to address the City, either on behalf of the Committee or as an individual, and (c) the Committee may only request copies of reports and documents which have been previously presented to the City and which are a public record. Section 6. Meetings of the Committee. 6.1 Regular Meetings. The Committee shall meet at least once a year but no more frequently than bi- monthly. 6.2 Location. All meetings shall be held within the boundaries of the City. 6.3 Procedures. All meetings shall be open to the public in accordance with the Ralph M Brown Act, Government Code Section 54950 et seq. Meetings shall be conducted according to such additional procedural rules as the Committee may adopt. A majority of the number of Committee members shall constitute a quorum for the transaction of any business of the Committee. Section 7. City Support. 7.1 The City shall provide to the Committee necessary technical and administrative assistance as follows: 3 (a) preparation of and posting of public notices as required by the Brown Act, ensuring that all notices to the public are provided in the same manner as notices regarding meetings of the City Council; (b) provision of a meeting room, including any necessary audio /visual equipment; (c) preparation, translation and copies of any documentary meeting materials, such as agendas and reports; and (d) retention of all Committee records, and providing public access to such records on an Internet website maintained by the City. 7.2 City staff and/or City consultants shall attend Committee proceedings in order to report on the status of projects and the expenditures of bond proceeds. 7.3 No bond proceeds shall be used to provide City support to the Committee. Section 8. Reports. The Committee may report to the City from time to time in order to advise the City on the Activities of the Committee and to comply with the Ordinance. Section 9. Officers. The City Manager shall appoint the initial Chair to serve for the initial Committee meeting, and, thereafter, the Committee shall elect the Chair and Vice -Chair of the Committee. The Vice -Chair shall act as chair only when the Chair is absent. Section 10. Amendment of Bylaws. Any amendment to these Bylaws shall be approved by a majority vote of the City Council. Section 11. Termination. The Committee shall automatically terminate and disband 180 days after all Bond Measure A bond proceeds are spent. Section 12. Conflict with Ordinance. In the event of any conflict between these Bylaws and the Ordinance, the Ordinance shall control. 4 CITIZENS' BOND OVERSIGHT COMMITTEE ETHICS POLICY STATEMENT This Ethics Policy Statement provides general guidelines for Committee members in carrying out their responsibilities. Not all ethical issues that Committee members face are covered in this Statement. However, this Statement captures some of the critical areas that help define ethical and professional conduct for Committee members. The provisions of this Statement were developed from existing laws, rules, policies and procedures as well as from concepts that define generally accepted good business practices. Committee members are expected to strictly adhere to the provisions of this Ethics Policy. POLICY • CONFLICT OF INTEREST. A Committee member shall not make or influence a City decision related to: (1) any contract funded by bond proceeds or (2) any construction project which will benefit the committee member's outside employment, business, or a personal finance or benefit an immediate family member, such as a spouse, child or parent. • OUTSIDE EMPLOYMENT. A Committee member shall not use his or her authority over a particular matter to negotiate future employment with any person or organization that relates to: (1) any contract funded by bond proceeds, or (2) any acquisition or construction project. A Committee member shall not make or influence a City decision related to any acquisition or construction project involving the interest of a person with whom the member has an agreement concerning current or future employment, or remuneration of any kind. For a period of two (2) years after leaving the Committee, a former Committee member may not represent any person or organization for compensation in connection with any matter pending before the City that, as a Committee member, he or she participated in personally and substantially. Specifically, for a period of two (2) years after leaving the Committee, a former Committee member and the companies and businesses for which the member works shall be prohibited from contracting with the City with respect to: (1) bidding on projects funded by the bond proceeds; and (2) any acquisition or construction project. • COMMITMENT TO UPHOLD LAW. A Committee member shall uphold the federal and California Constitutions, the laws and regulations of the United States and the State of California and all other applicable government entities, and the policies, procedures, rules and regulations of the City of Arcadia; • COMMITMENT TO CITY. A Committee member shall place the interests of the City above any personal or business interest of the member. Attachment "A"