Santa Cruz County Civil Grand Jury 2014-2015 Response Packet Parcel Tax Oversight Committee - Oversight or Overlook

R1

Santa Cruz City Schools District should reconstruct and make available on its website an institutional historical record of the Parcel Tax Oversight Committee’s activities. This record should include but not be limited to the official committee charge, membership, and annual reports for the entire span of the committee’s existence, 2003 to the present. Where these records are unavailable, the website should note that absence. X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: This recommendation has been implemented to the extent that records are available. The District updated the website for the Parcel Tax Oversight Committee before the Grand Jury Report was issued. The updated website now includes, among other elements: the Committee’s charge; a description of current parcel tax measures; its current membership; meeting dates, times, and locations; downloadable agendas and minutes; Parcel Tax Budget Summaries; information regarding applicability of the Brown Act; and to the extent feasible, past records and reports of the Committee. Where records are not available, the website notes their unavailability. The District has also added a link to the new Parcel Tax Oversight Committee Bylaws adopted by the District’s Board of Education at its May 20, 2015 meeting. (See link to Bylaws at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee- ptoc.html.)

R2

The Santa Cruz City Schools website for the Parcel Tax Oversight Committee should include the Brown Act requirement, posted meeting times and locations, agendas, minutes, and membership, both for past and upcoming meetings. (F1, F14) HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) X WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: This recommendation has been implemented to the extent records are available. As noted above in the District’s response to Recommendation 1, the District’s website has been updated to include, among other elements, all Parcel Tax Oversight Committee meeting dates, times, and locations for the current year, a reference to the applicability of the Brown Act to the Committee, and current Committee membership. Meeting and membership information will continue to be posted and updated going forward. Minutes, agendas, and membership information for years prior to 2014 are not available. (See http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.).

R3

The Parcel Tax Oversight Committee should ensure that all its members are apprised of the rules and regulations governing their activity, and its officers must require compliance with those rules. Rules should be established for addressing the issue of persistent non-attendance. (F2, F3, F6, F7) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: Following the appointment of new members to the Parcel Tax Oversight Committee (PTOC), Assistant Superintendent of Business Services, Jim Monreal, provided an overview of the Committee’s role and responsibilities to the PTOC at the Committee’s March 2nd 2015 meeting. At the Committee’s April 20, 2015 meeting, Mr. Monreal also reviewed the requirements of the Ralph M. Brown Act as applicable to the Committee. (See PTOC Minutes, available at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.) At the March 25, 2015 Board meeting, before the Grand Jury Report was released, SCCS Administration brought forward draft PTOC Bylaws for first reading by the Board. These Bylaws were then reviewed by the PTOC for their input at the April 20, 2015 PTOC meeting. A final version of the Bylaws was approved and adopted by the Board at its May 20, 2015 meeting. Among other matters, the Bylaws address the issue of persistent non-attendance by Committee members at Section 5.8. A link to the PTOC Bylaws has been posted on the District website. (See link to Bylaws at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight- committee-ptoc.html.)

R3

The Parcel Tax Oversight Committee should ensure that all its members are apprised of the rules and regulations governing their activity, and its officers must require compliance with those rules. Rules should be established for addressing the issue of persistent non-attendance. (F2, F3, F6, F7) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: Following the appointment of new members to the Parcel Tax Oversight Committee (PTOC), Assistant Superintendent of Business Services, Jim Monreal, provided an overview of the Committee’s role and responsibilities to the PTOC at the Committee’s March 2nd 2015 meeting. At the Committee’s April 20, 2015 meeting, Mr. Monreal also reviewed the requirements of the Ralph M. Brown Act as applicable to the Committee. (See PTOC Minutes, available at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.) At the March 25, 2015 Board meeting, before the Grand Jury Report was released, SCCS Administration brought forward draft PTOC Bylaws for first reading by the Board. These Bylaws were then reviewed by the PTOC for their input at the April 20, 2015 PTOC meeting. A final version of the Bylaws was approved and adopted by the Board at its May 20, 2015 meeting. Among other matters, the Bylaws address the issue of persistent non-attendance by Committee members at Section 5.8. A link to the PTOC Bylaws has been posted on the District website. (See link to Bylaws at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight- committee-ptoc.html.)

R7

The Santa Cruz City Schools Board of Education should solicit applications from the public at large whenever vacancies occur or terms expire among Board appointed seats. (F5) HAS BEEN IMPLEMENTED X HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: As set forth in Section 3.3 of the Bylaws adopted by the Board on May 20, 2015, “the Board of Education will solicit applications from the public at large for Board-appointed seats as vacancies occur. Notice of such vacancies and information regarding the application process will be advertised in the local media and published on the District’s website. Applications will be made available in the District Office and on the District website.” (See link to Bylaws at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.)

R3

The Parcel Tax Oversight Committee should ensure that all its members are apprised of the rules and regulations governing their activity, and its officers must require compliance with those rules. Rules should be established for addressing the issue of persistent non-attendance. (F2, F3, F6, F7) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: Following the appointment of new members to the Parcel Tax Oversight Committee (PTOC), Assistant Superintendent of Business Services, Jim Monreal, provided an overview of the Committee’s role and responsibilities to the PTOC at the Committee’s March 2nd 2015 meeting. At the Committee’s April 20, 2015 meeting, Mr. Monreal also reviewed the requirements of the Ralph M. Brown Act as applicable to the Committee. (See PTOC Minutes, available at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.) At the March 25, 2015 Board meeting, before the Grand Jury Report was released, SCCS Administration brought forward draft PTOC Bylaws for first reading by the Board. These Bylaws were then reviewed by the PTOC for their input at the April 20, 2015 PTOC meeting. A final version of the Bylaws was approved and adopted by the Board at its May 20, 2015 meeting. Among other matters, the Bylaws address the issue of persistent non-attendance by Committee members at Section 5.8. A link to the PTOC Bylaws has been posted on the District website. (See link to Bylaws at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight- committee-ptoc.html.)

R3

The Parcel Tax Oversight Committee should ensure that all its members are apprised of the rules and regulations governing their activity, and its officers must require compliance with those rules. Rules should be established for addressing the issue of persistent non-attendance. (F2, F3, F6, F7) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: Following the appointment of new members to the Parcel Tax Oversight Committee (PTOC), Assistant Superintendent of Business Services, Jim Monreal, provided an overview of the Committee’s role and responsibilities to the PTOC at the Committee’s March 2nd 2015 meeting. At the Committee’s April 20, 2015 meeting, Mr. Monreal also reviewed the requirements of the Ralph M. Brown Act as applicable to the Committee. (See PTOC Minutes, available at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.) At the March 25, 2015 Board meeting, before the Grand Jury Report was released, SCCS Administration brought forward draft PTOC Bylaws for first reading by the Board. These Bylaws were then reviewed by the PTOC for their input at the April 20, 2015 PTOC meeting. A final version of the Bylaws was approved and adopted by the Board at its May 20, 2015 meeting. Among other matters, the Bylaws address the issue of persistent non-attendance by Committee members at Section 5.8. A link to the PTOC Bylaws has been posted on the District website. (See link to Bylaws at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight- committee-ptoc.html.)

R6

The required Parcel Tax Oversight Committee annual report at the end of the fiscal year should be prepared in advance and included in the Board book, presented orally at a Board meeting, distributed to local media, and published on the Santa Cruz City Schools website. (F8) HAS BEEN IMPLEMENTED X HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: Guidelines for the PTOC Committee Annual Report are outlined in the Bylaws adopted by the Board at its May 20, 2015 meeting. Specifically, the Bylaws provide, at Section 3.3(C), that the Committee shall “[p]repare and present to the Board, in open session, an annual written report (“Annual Report”) which will include: (1) a statement indicating whether the District’s parcel tax revenue expenditures for the preceding year were made in accordance with the stated purpose of each parcel tax measure; and (2) a summary of the Committee’s proceedings for the preceding year.” The Bylaws further provide that the Annual Report “shall be made available to local media and the public and shall be posted on the District’s website.” (See link to Bylaws at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.) When the PTOC presents their Annual Report to the Board on June 17, 2015, it will be presented both orally and in writing, made available to local media and the public and posted on the District website.

R8

Future parcel tax language should be more precise about the specific responsibilities of the Parcel Tax Oversight Committee, especially regarding the advisory nature of their oversight, required public reporting, and Brown Act compliance. (F8, F12, F13, F14) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) X WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: The limited space allocated to a proposed ballot measure is inadequate to cover the purposes and specific responsibilities of the PTOC. Thus, the Board-adopted PTOC Bylaws address these issues. (See link to Bylaws at http://www.sccs.santacruz.k12.ca.us/community/parcel-tax- oversight-committee-ptoc.html.)

R9

Future parcel tax language should more accurately reflect the intent and priorities of the SCCS regarding spending priorities by including funding percentages where appropriate. (F9, F11) HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) X WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: This recommendation will not be implemented. The current parcel tax language set forth in the text of Measures I, J, and P clearly states the intended purpose and priorities of each measure with regard to support of specific District programs and services. (See Exhibits A, B, and C.) As discussed in the District’s response to Finding 11, Measures I, J, and P do not require the District to allocate specific percentages of funding to supported programs and services. This provides the District with the flexibility needed to make funding decisions within the parameters outlined by each measure that are responsive to changing budgetary and staffing priorities. For example, the amount a program costs varies based on the costs of individual employees. Newer employees will cost less and more experienced employees will cost more. As the majority of the cost of programs funded by the parcel taxes is salaries of individuals that support student programs, the amounts for each program will vary based on the individual employee’s experience, which will vary from year to year. For example, if two librarians who are at the top of the pay scale with longevity choose to retire, librarians hired to replace the retirees may not be at the top of the pay scale, thus significantly shifting percentages of expenditures without any impact to the programs or services offered to students. Assigning specific funding percentages does not give the District the flexibility it needs to adjust funding to address shifting budgetary priorities over the course of each school year.

R5

Santa Cruz City Schools business office should reconstruct from its financial records the parcel tax expenditures for all the years since the parcel tax was collected and post these on its website. (F10) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: The District has implemented this recommendation. Parcel tax expenditures for the years 2002- 2003 to March 2015 are posted on the District’s website. (See http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.)

R4

The Santa Cruz City Schools Board of Education should clarify its position on the percentages for funding priorities to which it committed in 2006, and either explicitly revise those percentages or instruct the District business office to comply with those percentages in its budget. (F11) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: This recommendation will be partially implemented. As discussed in Finding 11, the District’s Board has allocated all parcel tax revenue in accordance with the requirements of each voter- approved parcel tax measure. (See Exhibits A, B, and C.) In October 2005, the Board approved proposed funding percentages for revenue received from Measures A and B. However, Measures A and B have now expired. Therefore, the Board clarifies its position that current parcel tax Measures I, J, and P do not require the Board to allocate funding percentages to programs and services supported by the measures and that, accordingly, its Board has not taken action to allocate specific funding percentages for programs supported by Measures I, J and P. Pursuant to this clarification, the District will not “explicitly revise those percentages or instruct the District business office to comply with those percentages in its budget.”

R9

Future parcel tax language should more accurately reflect the intent and priorities of the SCCS regarding spending priorities by including funding percentages where appropriate. (F9, F11) HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) X WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: This recommendation will not be implemented. The current parcel tax language set forth in the text of Measures I, J, and P clearly states the intended purpose and priorities of each measure with regard to support of specific District programs and services. (See Exhibits A, B, and C.) As discussed in the District’s response to Finding 11, Measures I, J, and P do not require the District to allocate specific percentages of funding to supported programs and services. This provides the District with the flexibility needed to make funding decisions within the parameters outlined by each measure that are responsive to changing budgetary and staffing priorities. For example, the amount a program costs varies based on the costs of individual employees. Newer employees will cost less and more experienced employees will cost more. As the majority of the cost of programs funded by the parcel taxes is salaries of individuals that support student programs, the amounts for each program will vary based on the individual employee’s experience, which will vary from year to year. For example, if two librarians who are at the top of the pay scale with longevity choose to retire, librarians hired to replace the retirees may not be at the top of the pay scale, thus significantly shifting percentages of expenditures without any impact to the programs or services offered to students. Assigning specific funding percentages does not give the District the flexibility it needs to adjust funding to address shifting budgetary priorities over the course of each school year.

R8

Future parcel tax language should be more precise about the specific responsibilities of the Parcel Tax Oversight Committee, especially regarding the advisory nature of their oversight, required public reporting, and Brown Act compliance. (F8, F12, F13, F14) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) X WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: The limited space allocated to a proposed ballot measure is inadequate to cover the purposes and specific responsibilities of the PTOC. Thus, the Board-adopted PTOC Bylaws address these issues. (See link to Bylaws at http://www.sccs.santacruz.k12.ca.us/community/parcel-tax- oversight-committee-ptoc.html.)

R8

Future parcel tax language should be more precise about the specific responsibilities of the Parcel Tax Oversight Committee, especially regarding the advisory nature of their oversight, required public reporting, and Brown Act compliance. (F8, F12, F13, F14) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) X WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: The limited space allocated to a proposed ballot measure is inadequate to cover the purposes and specific responsibilities of the PTOC. Thus, the Board-adopted PTOC Bylaws address these issues. (See link to Bylaws at http://www.sccs.santacruz.k12.ca.us/community/parcel-tax- oversight-committee-ptoc.html.)

R10

The Santa Cruz City Schools Board of Education should provide the Parcel Tax Oversight Committee with a formal charge. (F13) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: At Section 2.2, the Board-adopted PTOC Bylaws provide, in part: “The Committee’s charge is to review and report on the expenditure of parcel tax revenues and to ensure said revenue is expended in accordance with the stated purposes of each parcel tax measure.” The Committee’s charge is also posted on the District website. (See http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.)

R2

The Santa Cruz City Schools website for the Parcel Tax Oversight Committee should include the Brown Act requirement, posted meeting times and locations, agendas, minutes, and membership, both for past and upcoming meetings. (F1, F14) HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) X WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: This recommendation has been implemented to the extent records are available. As noted above in the District’s response to Recommendation 1, the District’s website has been updated to include, among other elements, all Parcel Tax Oversight Committee meeting dates, times, and locations for the current year, a reference to the applicability of the Brown Act to the Committee, and current Committee membership. Meeting and membership information will continue to be posted and updated going forward. Minutes, agendas, and membership information for years prior to 2014 are not available. (See http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.).

R8

Future parcel tax language should be more precise about the specific responsibilities of the Parcel Tax Oversight Committee, especially regarding the advisory nature of their oversight, required public reporting, and Brown Act compliance. (F8, F12, F13, F14) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) X WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: The limited space allocated to a proposed ballot measure is inadequate to cover the purposes and specific responsibilities of the PTOC. Thus, the Board-adopted PTOC Bylaws address these issues. (See link to Bylaws at http://www.sccs.santacruz.k12.ca.us/community/parcel-tax- oversight-committee-ptoc.html.)

R11

The Santa Cruz City Schools Board of Education should require the Parcel Tax Oversight Committee to comply with the Brown Act. (F14) X HAS BEEN IMPLEMENTED HAS NOT BEEN IMPLEMENTED BUT WILL BE IMPLEMENTED IN THE FUTURE - indicate timeframe below REQUIRES FURTHER ANALYSIS - explain scope and timeframe below (not to exceed six months) WILL NOT BE IMPLEMENTED - explain below Response summary, timeframe or explanation: At Section 2.3, the Board-adopted PTOC Bylaws require the Committee to, among other things, “abide by the provisions of the Ralph M. Brown Act (the “Brown Act”) (Gov. Code § 54950 et seq.) and all rules of conduct established in these Bylaws.” (See link to Bylaws at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.) At the April 20, 2015 PTOC Meeting, Assistant Superintendent Jim Monreal, provided training for the Committee on the Brown Act requirements as applicable to the PTOC. This training will be renewed whenever new members are added to the PTOC Committee and will be reviewed annually at the first meeting of each new fiscal year. (See PTOC Minutes, available at: http://www.sccs.santacruz.k12.ca.us/community/parcel-tax-oversight-committee-ptoc.html.) .