~en Siegel, City Manager

10/3/2017 City of San Juan Capistrano Agenda Report E7 TO: FROM: Honorable Mayor and Members of the City Council ~en Siegel, City Manager SUBMITTED BY: Maria Morris, City Clerk VV\V</'\ DATE: October 3, 2017 SUBJECT: Consideration of Declaring Vacancies on the Citizens' Bond Oversight Ad-Hoc Committee RECOMMENDATION: By motion, declare all positions on the Citizens' Bond Oversight Ad-Hoc Committee vacant as of December 10, 2017; and direct the City Clerk to prepare and post appropriate notices to solicit applications. EXECUTIVE SUMMARY: The Citizens' Bond Oversight Ad-Hoc Committee is to be comprised of at least five City residents who are registered voters in San Juan Capistrano. 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. No City Official, City employee, City Commission or Committee Member, or City Contractor will be allowed to serve on the Committee. The Citizens' Bond Oversight Ad-Hoc Committee does not have decision-making authority, but reviews and provides recommendations to the City Council for expenditure of bond proceeds, and reports on whether such expenditures conform to the purposes stated in Ordinance 940 (Open Space Measure Y - 2008 Election), adopted by the City Council on August 19, 2008. The Committee also reviews audits and reports of expenditures of bonds proceeds, and informs the public concerning the same. Staff recommends that the City Council declare vacancies now to allow time for soliciting applications, application review and applicant interviews by the Mayor's Sub-Committee. Appointments by the City Council will be scheduled by the December 5, 2017, City Council meeting in order to fill the vacancies that will occur on December 10, 2017.

City Council Agenda Report October 3, 2017 Page 2 of 2 DISCUSSION/ANALYSIS: Not applicable. FISCAL IMPACT: Not applicable. ENVIRONMENTAL IMPACT: Not applicable. PRIOR CITY COUNCIL REVIEW: Not applicable. COMMISSION/COMMITTEE/BOARD REVIEW AND RECOMMENDATIONS: Not applicable. NOTIFICATION: The Citizens' Bond Oversight Ad-Hoc Committee has received notification. The City Clerk will solicit applications by contacting committee applicants from the last appointment process, posting notices, posting information on the City's website, and issuing press releases. ATTACHMENT(S): Attachment 1 - City Council Resolution 09-1 0-06-04

RESOLUTION NO. 09-10-06-04 RESOLUTION OF THE CITY COUNCIL OF THE. CITY OF SAN JUAN CAPISTRANO ESTABLISHING A CITIZENS' BOND OVERSIGHT COMMITTEE AND APPROVING BYLAWS THEREFORE WHEREAS, the City Council of the City of San Juan Capistrano (the "City") previously adopted a resolution calling an election for general obligation bonds (the "Bond Election") held on November 4, 2008; and WHEREAS, notice of the Bond Election was duly given; a nd on November 4, 2008, 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 $30,000,000 ("Measure Y"); and WHEREAS, based on the Canvass and Statement of Results for the County, more than two-thirds of the votes cast on Measure Y were in favor of issuing the aforementioned bonds; and WHEREAS, the City Council of the City wishes hereby to establish an independent citizens' bond oversight committee in connection.with any issuance of bonds under Measure Y. and t9 approve Bylaws governing such committee. NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SAN JUAN CAPISTRANO DOES HEREBY FIND, DETERMINE AND CERTIFY AS FOLLOWS: Section 1. Authorization. Measure Y was authorized pursuant to Article XIIIA of the California Constitution and in accordance with Ordinance No. 940 of the City Council (the "Ordinance"). Section 2. Establishment of Committee. An independent citizens' bond oversight committee (the "Committee") is hereby established for the purposes set forth in the Ordinance. -Section 3. Bylaws. 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. The Bylaws, as submitted herewith and attached hereto, are hereby approved. Section 4. Other Actions. O.fficers 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. ATTACHMENT 1

APPROVE AS TO FORM: STATE OF CALIFORNIA COUNTY OF ORANGE CITY OF SAN JUAN CAPISTRANO ) ) ss. ) I, Maria Morris, Acting City Clerk of the City of San Juan Capistrano, hereby :. certifies. that the foregoing resolution was duly adopted by the City Council of said City a.t a regular meeting. of said City Council held on the 5TH day of October, 2009, and that it was so adopted by the following vote: A YES: Council members: Allevato, Freese, Hribar, I.) so and Mayor Nielsen NOES: Councilmembers: None ABSENT: Councilmembers: None.[.... 2 10-6-2009

CITIZENS' BOND OVERSIGHT COMMITTEE BYLAWS Section 1. Committee Established.. The City of San Juan Capistrano (the "City") was successful at the election conducted on November 4, 2008 (the "Bond Election") in obtaining authorization from the City's voters to issue up to $30,000,000 aggregate principal amount of the City's general obligation bonds ("Measure Y"). Pursuant to Ordinance No. 940 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 San Juan Capistrano (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 Measure Y. Other open space projects and all monies generated under other sources shall fall outside the scope of the Committee's review. 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 the Measure Y. The Committee shall have no jurisdiction over the following types of activities: (a) Approval of contracts, 1 Exhibit A

(b) (c) (d) (e) (f) (g) Approval of change orders, Expenditure of bond funds, Handling of all legal matters, Approval of project plans and schedules, Approval of all maintenance plans, and Approval of the sale of bonds. 3.3 Measure Y Projects 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 shall be outside the authority of the Committee. (b) The establishment of priorities and order of construction for the bond projects, which shall be made by the City Council in its sole discretion. (c) 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. (d) 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. (e) The selection of independent audit firm(s), performance audit consultants and such other consultants as are necessary to support the Activities of the Committee. (f) The approval of an annual budget for the Committee that is sufficient to carry out its activities. (g) 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. 2 Exhibit A

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. City. (c) Review copies of maintenance proposals or plans developed by the (d) Review efforts by the City to maximize bond proceeds by implementing various cost-saving measures. Section 5. Membership. 5.1 Number. The Committee shall consist of at least 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. age. (a) To be a qualified person, he or she must be at least 18 years of (b) The committee may not include any employee, official of the City, City Commission or Committee Member or any vendor, contractor or consultant of the City. (c) Must be a Register Voter of the City of San Juan Capistrano. 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. 3 Exhibit A

5.4 Term. Except as otherwise provided herein, each member shall serve a term of two (2) years, commencing on the date of the first meeting of the Committee subject to Article 1 of Chapter 2 of Title 2 of the San Juan Capistrano Municipal Code (Sections 2-2.101 to 2-2.109). 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: (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) equipment; provision of a meeting room, including any necessary audio/visual (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. 4 Exhibit A

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 an initial two (2) year term. The Committee shall elect an initial Vice-Chair. Thereafter, the Committee shall elect a Chair and a Vice-Chair who 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 Measure Y 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. 5 Exhibit A

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 San Juan Capistrano; COMMITMENT TO CITY. A Committee member shall place the interests of the City above any personal or business interest of the member. 1 Attachment A