Sacramento Budget and Audit Committee Meeting - November 30, 2021

The Budget and Audit Committee of the Sacramento City Council met on Tuesday, November 30, 2021, from 3:03 p.m. to 3:50 p.m. via teleconference due to the COVID-19 pandemic. The committee, chaired by Vice Chair Eric Guerra (with Mayor Darrell Steinberg joining later), reviewed three items: the City Auditor's first quarter activity report, an audit of the Sacramento Community Police Review Commission (CPRC), and a continuous cannabis review of the Business Operations Tax (BOT). All items were approved unanimously and forwarded to the full City Council for final action. The meeting included extensive discussion on improving the structure and effectiveness of police oversight.

Consent Calendar

• Item 1 – City Auditor's Activity Report for 1st Quarter FY2021/22: The committee unanimously accepted the report and forwarded it to the City Council. The motion was made by Mayor Steinberg and seconded by Councilmember Vang, with all members voting yes.

Public Comments & Testimony

• No members of the public provided testimony on any agenda item.

Discussion Items

• Item 2 – Audit of the Sacramento Community Police Review Commission (CPRC): City Auditor Jorge Oseguera presented findings from an audit that examined the CPRC's structure, authority, and effectiveness. The audit reviewed 110 recommendations issued by the commission between 2018 and 2021 and found that less than half received written responses from the Sacramento Police Department (though written responses were not required). The audit identified three findings with 16 recommendations, including the need to clarify the commission's scope and authority, provide adequate staffing and training, require formal police responses, and establish a tracking system for recommendations. The committee discussion highlighted broad frustration with the current system. Mayor Steinberg stated, "this is not working," and outlined four key questions regarding the commission's scope, staffing (including OPSA's role), police department interaction, and council consideration of recommendations. He proposed presenting a set of recommendations to the City Council in January. Councilmember Jennings supported a broader workshop with all stakeholders, including the commission, police, and OPSA. Councilmember Vang stressed the need for a clear structure and timeline to implement audit recommendations. Police Chief Lester concurred with the audit and noted the importance of process and transparency. Councilmember Guerra requested that the commission's own process improvement suggestions, which align with the audit, be included when the item goes to council. The committee passed a motion (4-0) to forward the audit to the City Council with direction to include recommendations concurred with by the commission and to allow the commission to present and respond to the audit at the council meeting.

• Item 3 – Continuous Cannabis Review: Business Operations Tax (BOT): The auditor presented findings from a continuous audit of the revenue division's cannabis BOT process. The audit identified four entities operating without a BOT certificate that may owe over $200,000 in taxes; the revenue division has already contacted them to bring them into compliance. The audit made eight recommendations in three findings, including strengthening security controls for badge access, improving BOT verification, and expanding compliance audits to all cannabis business types. The committee unanimously accepted the audit and forwarded it to the City Council on a motion by Councilmember Guerra, seconded by Councilmember Vang.

Key Outcomes

• Item 2 (CPRC Audit): Motion passed 4-0 to accept the audit and forward to the City Council with directions: (1) include recommendations that are in concurrence between the audit and the commission, and (2) allow the commission to present and respond to the audit at the council meeting. The committee also signaled that the Mayor would bring forward a set of policy recommendations for council consideration in January 2022.
• Item 3 (Cannabis BOT): Motion passed 4-0 to accept the audit and forward to the City Council for approval.
• OPSA RFP Update: Councilmember Guerra requested a report back on the OPSA RFP previously discussed at a council meeting. The Mayor agreed to properly agendize the item for the next Budget and Audit Committee meeting.
• The meeting adjourned at 3:50 p.m.