Summary of Responses to the 2017-2018 Stanislaus County Civil Grand Jury’s Final Reports

Additional Recommendations 3

These recommendations are not explicitly linked to specific findings.

• R14
  Ensure LAFCO website shows the correct monthly board meeting time and location and update when necessary by X September 1, 2018.
• R50-70
  At Risk Hughson 71 Good 0-49 Poor Modesto 50 At Risk Newman 61 At Risk Oakdale 61 At Risk Patterson 61 At Risk Riverbank 71 Good Stanislaus County 49 Poor Turlock 61 At Risk Waterford 71 Good Source: League of California Cities “California Statewide Local Streets and Roads Needs Assessment”, 2016 Stanislaus County’s estimated population in 2017 was 547,899. By the year 2040, the projected population will reach approximately 707,000 people. Population growth of 29% is forecast to result in over 50,000 new housing units and 47,000 new jobs. Increases in population and housing also create a greater need for road improvement. Nearly every trip – whether by car, bus, bike, or foot – begins and ends on a local street or road. Unmaintained roads cost consumers 4 needless repairs to damaged vehicles and tires and decreases safety for drivers and pedestrians. The local system is critical for the economy, the safety and mobility of the traveling public, emergency responders, law enforcement, and other transportation modes such as bicycles and buses. Stanislaus County Voters Approve Measure L In November 2016 more than 70% of Stanislaus County voters approved Measure L, a 25-year one-half cent special sales tax used exclusively for regional and local transportation improvements. Stanislaus County then joined over 20 other California counties designated Self- Help Counties. Self-Help Counties can address and improve transportation infrastructure needs allowing leverage of a larger share of future local, state, and federal transportation funding opportunities. All Measure L funds generated by this special tax stay in Stanislaus County. Safe, efficient streets and roads in Stanislaus County are the most important components of getting from Point A to Point B. With the passage of Measure L, local jurisdictions now can improve more roads, thus upgrading the appearance and infrastructure of the entire community. StanCOG distributes Measure L sales tax revenues to local cities. Each entity identifies and prioritizes specific streets and roads for repair and/or refurbishment. These funds are used exclusively for repair and maintenance. No new roads can be funded. Measure L mandates that local jurisdictions use the funds to augment current transportation spending but not replace a local entity’s general fund expenditures. Measure L Timeline November 8, 2016 June 2017 Stanislaus County StanCOG receives voters approve Measure L Measure L funds April 1, 2017 Funds allocated to Local Jurisdictions One-half cent added to beginning FY17/18 Stanislaus County sales tax rate 5 StanCOG Investigation The Stanislaus Council of Governments (StanCOG) is the Local Transportation Authority (LTA) that administers Measure L. Initial steps taken in the Measure L investigation were requests for documents. SCCGJ mailed document requests to StanCOG on October 4, 2018 with another request for additional documents on November 7, 2018. The agency responded quickly, submitting organized, easy-to-read groups of documents. SCCGJ interviewed StanCOG on November 22, 2018. A StanCOG representative answered all questions without hesitation. The decision to interview StanCOG prior to interviewing the three local jurisdictions was very beneficial for SCCGJ. SCCGJ gained a greater understanding of the measure from development to inception. Major interview topics included the following:  Ordinance 16-01  Resolution 17-10  Resolution 17-11 Ordinance 16-01  Measure L Local Roads First Transportation Funding Measure Ordinance 16-01 was adopted by the Local Transportation Authority on June 22, 2016, establishing and implementing a retail transaction and use tax (Appendix A). This ordinance provides the execution of the Measure L Expenditure Plan. The ordinance includes local street and road improvements, traffic management, and bicycle and pedestrian safety. Each jurisdiction must create a special fund account into which Measure L allocations are deposited. Sales tax revenues are distributed monthly to StanCOG by the California Board of Equalization (BOE). The BOE Measure L sales tax collection began on April 1, 2017 with the first distribution to StanCOG in June 2017. StanCOG is a “pass-through” agency which allocates monthly funds to local jurisdictions but has no control or oversight of entities’ projects. In FY17/18 StanCOG received the following Measure L funds from BOE: Total StanCOG FY 17/18 Measure L Funds Received* July 2017 Aug Sept Oct Nov Dec 2017 2,310,300 3,080,400 4,816,568 2,406,400 3,208,500 5,375,999 Jan 2018 Feb March April May June 2018 2,727,300 3,636,400 4,541,240 2,622,200 4,385,509 3,234,554 *Source: StanCOG interviewee 6  Maintenance of Effort (MOE) The intent of the Legislature and the LTA is that revenues provided from Ordinance 16-01 be used to supplement existing revenues for transportation projects, improvements and programs. Pursuant to the intent of the Public Utilities Code section 180001, a jurisdiction cannot redirect monies currently being used for transportation purposes to other uses, and subsequently replace the redirected funds with local street maintenance and improvement dollars from the sales and use tax. To meet the requirements of state law and to receive local streets and roads funds, a local jurisdiction must demonstrate maintenance of a minimum level of street and road expenditures to conform with the provision below: “Annual expenditures of a local jurisdiction’s general funds for transportation purposes shall not be an amount less than the three-year average of its annual expenditures from its general fund during the prior three fiscal years. In calculating the three-year average annual general fund expenditures, any unrestricted funds which the local jurisdiction may expend at its discretion, expended for transportation purposes are expenditures from the general fund.” Source: Ordinance #16-01 Section 9.03.01  Safeguards The Measure L Oversight Committee was established to review an independent fiscal audit of local jurisdictions’ expenditures. The committee issues an annual report of its findings to StanCOG regarding compliance with the Measure L Expenditure Plan and the Measure L Ordinance. The committee is responsible for oversight of the proper use of sales tax funds, implementation of the programs and projects set forth in the expenditure plan, and recommendations to StanCOG. The committee is not a policy-making body. The committee consists of one representative from each of the following jurisdictions: Ceres, Hughson, Modesto, Newman, Oakdale, Patterson, Riverbank, Turlock, Waterford, and County of Stanislaus. Members of the Measure L Oversight Committee are not permitted to be members of any other authority or StanCOG committee(s). Resolution 17-10 Resolution 17-10 was approved on November 15, 2017 by the StanCOG Policy Board adopting the Measure L Master Funding Agreement (MFA). Each local jurisdiction entered into a three- year Measure L Master Funding Agreement with StanCOG. In 2020 the MFA will be renegotiated with StanCOG. An MFA requires:  StanCOG to allocate local control funds as received from Measure L o The following chart indicates 100% of funds allocated to each jurisdiction: 7 Local Control Funds* Ceres 6.36% Hughson 1.26% Modesto 35.79% Newman 1.26% Oakdale 3.86% Patterson 4.55% Riverbank 3.42% Turlock 15.26% Waterford 1.26% Stanislaus County 26.98% Total 100% *Source: Measure L Expenditure Plan  Breakdown of allocations for local jurisdictions to be 65% of total Measure L receipts (see chart above): Local Streets and Roads 50%; Traffic Management 10%; and Bike and Pedestrian Safety 5%  Local jurisdictions to submit copies of capital improvement plans and all other approved projects and programs annually  Local jurisdictions to provide annual calculation of the MOE  Annual reports of all related activities due 90 days after end of fiscal year  A separate fund for all Measure L allocations including accounting efficiencies for easy tracking Measure L Allocations  Compliance reporting requirements including a monthly 7% Local Streets and Roads revenue and Traffic Management expenditure report by 28% 50% Bike and Pedestrian project and cash Regional Projects 5% balances 10% Transit Providers  Quarterly Milestone Reports providing a narrative of progress of projects using Measure L funds  Signage at all Measure L projects  Dedicated space on its city website informing the public of funding use 8 Total Local Jurisdictions FY 17/18 Measure L Funds Received* Ceres Hughson Modesto Newman Oakdale Patterson Riverbank Turlock Waterford 1,828,270** 362,204 10,288,329 362,204 1,109,610 1,307,960 983,126 4,386,697 362,204 *Source: StanCOG **Rounded to nearest dollar Program Allocations of Est. FY 17/18 Revenue Assumptions Total Allocation from BOE 40,845,607* Less StanCOG Administration 1% 408,456* Remaining Allocations 40,437,151* Expenditure Plan Allocation Categories/Funds Percentages Jurisdiction Categories/Funds TOTAL CATEGORY LOCAL CONTROL 65% 26,284,148 Local Streets and Roads - 50% 20,218,576 6.36% Ceres - Local Streets & Roads 1,285,901 1.26% Hughson - Local Streets & Roads 254,754 35.79% Modesto - Local Streets & Roads 7,236,228 1.26% Newman - Local Streets & Roads 254,754 3.86% Oakdale - Local Streets & Roads 780,437 4.55% Patterson - Local Streets & Roads 919,945 3.42% Riverbank - Local Streets & Roads 691,475 15.26% Turlock - Local Streets & Roads 3,085,355 1.26% Waterford - Local Streets & Roads 254,754 26.98% Stanislaus County - Local Streets & Roads 5,454,972 100.00% Traffic Management - 10% 4,043,715 6.36% Ceres - Traffic Management 257,180 1.26% Hughson - Traffic Management 50,951 35.79% Modesto - Traffic Management 1,447,246 1.26% Newman - Traffic Management 50,951 3.86% Oakdale - Traffic Management 156,087 4.55% Patterson - Traffic Management 183,989 3.42% Riverbank - Traffic Management 138,295 15.26% Turlock - Traffic Management 617,071 1.26% Waterford -Traffic Management 50,951 26.98% Stanislaus County - Traffic Management 1,090,994 100.00% Bike and Pedestrian - 5% 2,021,858 6.36% Ceres - Bike and Pedestrian 128,590 1.26% Hughson - Bike and Pedestrian 25,475 35.79% Modesto - Bike and Pedestrian 723,623 1.26% Newman - Bike and Pedestrian 25,475 3.86% Oakdale - Bike and Pedestrian 78,044 4.55% Patterson - Bike and Pedestrian 91,995 3.42% Riverbank - Bike and Pedestrian 69,148 15.26% Turlock - Bike and Pedestrian 308,535 1.26% Waterford - Bike and Pedestrian 25,475 26.98% Stanislaus County - Bike and Pedestrian 545,497 *Source: StanCOG. Includes Stanislaus County regional projects 9 Resolution 17-11 Resolution 17-11 was approved on November 15, 2017 by the StanCOG Policy Board adopting Measure L Policies and Procedures: Local Control Funds. The policies and procedures were written to ensure each jurisdiction expend Measure L allocations appropriately. It holds local jurisdictions to a high standard of government spending with accountability to cities, residents, and government agencies. Resolution 17-11 includes:  Measure L purpose  Purpose of Measure L Policies and Procedures: Local Control Funds  Signed Measure L Master Funding Agreement  Reporting requirements  Administrative and staff costs  Fund Exchange StanCOG Interview Summary At the time of the interview, the StanCOG interviewee stated all local jurisdictions were compliant for FY17/18. Requirements for a jurisdiction’s compliance include meeting all reporting and submittal requirements described in the Measure L Master Funding Agreement and the Measure L Policies and Procedures: Local Control Funds. A Reporting and Submittal Requirements template is available to jurisdictions in
• R71-85
  Good Ceres 61 At Risk