Budget and Audit Committee Special Meeting – December 6, 2022

The Budget and Audit Committee of the Sacramento City Council held a special hybrid meeting on Tuesday, December 6, 2022, beginning at 11:02 a.m. Vice Chair Eric Guerra presided, with Councilmembers Rick Jennings and Mai Vang present. Mayor Darrell Steinberg was absent. The meeting opened with a land acknowledgement led by Councilmember Vang and the Pledge of Allegiance led by Councilmember Jennings. The committee considered six discussion items and a consent calendar, forwarding all recommendations to the full City Council.

Consent Calendar

The committee approved two items by a single motion passed unanimously (3-0, with Mayor Steinberg absent):

• Item 1: Meeting minutes of September 6, 2022.
• Item 2: City Auditor's Activity Report for the first quarter of Fiscal Year 2022/23.

Public Comments & Testimony

Multiple members of the public spoke on discussion items.

• Lambert Davis (speaking on Items 3, 4, 5, 7): On the cannabis audit, he criticized a perceived double standard, stating that the city had created barriers for CORE while two businesses operated without inspection. On the SURA program, he praised the assistance but requested transparency regarding staff salaries. On the Measure U report, he thanked Dr. Kofer, accused the city of stonewalling by not providing data, and questioned the sincerity of equity and inclusion efforts. On language access, he noted he learned Spanish at Grant High School and expressed suspicion about the partnership between the auditor and city manager.
• Carolina Flores (speaking on Item 7 in English and Spanish): She criticized the language access survey for having only 21 Spanish-speaking respondents among 141 total, stating this was insufficient to assess citywide needs. She demanded permanent civil service interpreters instead of bilingual pay, an ironclad budget commitment, and specific services for disabled seniors, the hard of hearing, undocumented residents, homeless individuals, and youth.

Discussion Items

Item 3: Audit of the Cannabis Code Enforcement Unit (CCEU) Senior Auditor Nathan Lugo presented the audit, which found four issues: two businesses uninspected, lack of inspection checklists, incomplete documentation, and no performance metrics or safety equipment tracking. The CCEU had already begun addressing the findings. After public comment, the committee voted unanimously to accept the audit and forward it to the City Council.

Item 4: Sacramento Utility Rate Assistance Program (SURA) Recommendation Utilities Director Bill Busath presented five funding options to sustain the program. Option 5 (staff recommendation) proposed a 40% flat benefit for non-legacy participants, requiring a $200,000–$300,000 augmentation in FY2023 and up to $5.4 million in FY2024. Discussion included requests for demographic data on legacy customers and modeling of net costs to the general fund. The committee voted unanimously to forward the staff recommendation (Option 5) to the City Council.

Item 5: Measure U Community Advisory Committee FY2020/21 Annual Report Dr. Kofer, chair of the committee, presented the report, noting that the committee's recommendations (including no new police funding, increased housing/homelessness investment, and $15 million for participatory budgeting) were largely not adopted. She highlighted the lack of accessible data and the impending expiration of ad hoc committees on December 31, 2022. Councilmember Vang moved to accept the report, forward it to council, and direct staff to work on a stopgap solution for the ad hocs. The motion passed unanimously.

Item 6: Department of Utilities Designated Reserve Fund Policy Ryan Pham presented the policy, which formalizes existing reserves: operating (120 days of working capital), rate stabilization (25% of maximum debt service), and capital (minimum of one year's major expenses, target of five years). The policy was recommended by the city's financial advisor. The committee voted unanimously to forward it to the City Council.

Item 7: Language Access Policy Gap Analysis, Survey Results, and Recommendations City Auditor Jorge Oseguera presented the audit, which reviewed best practices, surveyed employees and the public, and identified gaps. Of 16 recommendations, key ones included developing a citywide language access policy, translating vital documents into Spanish, appointing a LEP coordinator, and establishing a complaint mechanism. Councilmember Vang noted the low public survey response (141 respondents, 21 in Spanish) and stressed the need for innovative outreach. She made a motion to forward the audit to council and to direct the city attorney, auditor, and city manager to develop a council-led language access ordinance. The motion passed unanimously.

Key Outcomes

• All consent and discussion items were approved by votes of 3-0 (Mayor Steinberg absent) and forwarded to the full City Council.
• Item 4 (SURA): Forwarded with staff's recommended Option 5, alongside a request for demographic data and net-cost modeling.
• Item 5 (Measure U report): Forwarded with a direction to find a temporary solution for the committee's ad hocs.
• Item 7 (Language Access): Forwarded with a directive to produce a council-led language access ordinance.
• Future requests: Councilmember Vang requested that the Front Street Animal Shelter be added to the City Auditor's scope of work for 2023 and reminded staff to bring a proposal for a youth department to a future Budget and Audit Committee meeting.