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HomeMy WebLinkAboutMINUTES - 08172004 - C81 TO: BOARD OF SUPERVISORS •;' Contra FROM: JOHN SWEETEN, County Administrator �` _j Costa DATE: AUGUST 4, 2004 County SUBJECT: RESPONSE TO GRAND JURY REPORT NO. 0407, ENTITLED "TOBACCO TAX DOLLARS FOR CHILDREN—HOW IS 1T WORKING?" SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION: APPROVE response to Grand Jury Report No. 0407, entitled "Tobacco Tax Dollars for Children—How is It Working?", and DIRECT the Clerk of the Board to forward the response to the Superior Court no later than September 1, 2004. BACKGROUND: The 2003/2004 Grand Jury filed the above-referenced report on June 4, 2004, which was reviewed by the Board of Supervisors and subsequently referred to the County Administrator, who prepared the attached response that clearly species: A. Whether the finding or recommendation is accepted or will be implemented; B. If a recommendation is accepted, a statement as to who will be responsible for implementation and a definite target date; C. A delineation of the constraints if a recommendation is accepted but cannot be implemented within a six-month period; and D. The reason for not accepting or adopting a finding or recommendation. CONTINUED ON ATTACHMENT: YES SIGNATURE: --------------------------- ------------- -- ----__ 5 "- ----" --� --RECOMMENDATION OF COUNTY ADMINISTRATOR RECO M� ATION OF BOARD COMMITTEE _­�APPROVEOTHER J SIGNATURE(S): -----—---------------------- ACTION OF BOARD/�- — ==- -- - ----- ==�--- - --- ----------------------------------------------------------------------- ---- t,L P _APPROVE AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE `e UNANIMOUS ABSENT 1 AND CORRECT COPY OF AN ACTION TAKEN ( } AND ENTERED ON THE MINUTES OF THE BOARD OF SUPERVISORS ON THE DATE AYES: NOES: SHOWN. ABSENT: ABSTAIN: ATTESTED: AUGUST 17,2004 CONTACT: JULIE ENEA(925)335-1077 JOHN SWEETEN,CLERK OF THE BOARD OF CC: BOARD OF SUPERVISORS MEMBERS SUPERVISORS AND COUNTY ADMINISTRATOR PRESIDING JUDGE OF THE GRAND JURY GRAND JURY FOREMAN COUNTY ADMINISTRATOR HEALTH SERVICES DIRECTOR FIRST 5 COMMISSION!EXECUTIVE DIRECTOR BY f -DEPUTY 1340 ARNOLD DRIVE,MARTINEZ 94553 BOARD OF SUPERVISORS RESPONSE TO GRAND JURY REPORT NO. 0407: TOBACCO TAX DOLLARS FOR CHILDREN - HOW IS IT WORKING? Proposition 10, passed by the voters of California in November 1998, established the California Children and Families Commission, also known as First 5 California. The measure imposed an additional excise tax on cigarettes of 50 cents per pack, and taxes on other types of tobacco products. The revenues derived from this measure are to be used exclusively to fund early childhood development programs for children pre-natal to 5 years of age and their families. The State collects these taxes. It distributes eighty percent of the revenues collected each year to County First 5 commissions to fund local programs. The funds are allocated to counties based upon county birth rate data. First 5 California uses the remaining twenty percent of revenues for statewide education, research and administration. First 5 Contra Costa (previously known as Children and Families Commission)was established in 1998 by the Contra Costa County Board of Supervisors as the county organization to carry out the program. First 5 Contra Costa states its vision as follows: "Contra Costa's young children will be healthy, ready to learn and supported in safe, nurturing families and communities." Comment. Because the First 5 Centra Costa Commission is a public entity separate from the County of Contra Costa, the County Board of Supervisors is not directly knowledgeable about many of the findings in this report and it would not be appropriate for the Board to respond to findings or recommendations directed to First 5 Contra Costa. In the following report, the County will indicate "No response"to any findings or recommendations not related to programs under the jurisdiction of the Board of Supervisors. 1. Responsibility. 1(a) First 5 Centra Costa is governed by 9 commissioners; each commissioner is supposed to have an alternate. Each member of the Board of Supervisors nominates one or more commissioners and alternates. The Board of Supervisors then selects commissioners and alternates from these nominees. In 2002-2003 the Commissioners were representatives of County Health Services, Community Services, and Employment and Human Services, a representative of each Supervisorial District and a representative of the Board of Supervisors. The bylaws require that each commissioner and alternate, other than the representative and alternate from the Beard of Supervisors, have child related qualifications. There is no requirement that there be a Commissioner who has comprehensive knowledge of accounting and financial reporting for government agencies and nonprofit organizations. Tobacco Tax Dollars for Children - How is It Working? August 4, 2004 Board of Supervisors Response to Grand Jury Report No. 0407 Page 2 Commissioners and Alternates serve for three years or until they are replaced or resign. Response: Partially disagree. Each member of the Board of Supervisors nominates only one commissioner and one alternate commissioner. The Board of Supervisors may ratifylapprove or reject those nominations. Commission membership and qualificationslrequirements are governed by county ordinance, which is consistent with the Children and Families Act(Health and Safety Code Section 130140). Terms of appointment are governed by County Ordinance Code section 26-14.090, which states that: - Commission members shall serve at the pleasure of the board and are subject to removal during their terms or other tenure of commission office by the board at its pleasure. if a member's term has expired, the member shall continue to serve until appointment of a successor. - Any board member designated by the chair for service on the commission shall serve at the discretion of the chair for a period not to exceed one year. - The three commission members appointed pursuant to subsection (b) of Section 26-94.006 shall serve without term limit but only as long as they hold their specified county offices. - The initial appointments of the five commissioners specified in subsection (c) of Section 2614.006 shall be of two for four year terms and three for three year terms. Thereafter, all subsequent appointments shall be for three year terms except to fill term vacancies. 1(b) At various times there have been long standing Commissioner and Alternate vacancies. Response: Agree. 1(c) The Commissioners are not compensated by First 5 Contra Costa. They are reimbursed for any out-of-pocket expense incurred for f=irst 5 business. Response: No response.* 1(d) Minutes of the Commission meetings in 2003 show Commissioners and Alternates attendance as follows: - Commissioner attendance was 6710 - Attendance of alternates was 31% Article Ill, Section 2(e)of the First 5 Bylaws says, in part: "Commission members are expected to attend all regular meetings of the Commission. In the event of an absence, the Commission member is required to inform his/her alternate." "Alternate members are expected to attend Commission meetings.,, Response: No response with regard to commissioner or alternate commissioner attendance or to commission by-laws.* To help achieve a meeting quorum, the County Ordinance Code provides that an alternate commissioner may attend and Tobacco Tax Dollars for Children-- How is It Working? August 4, 2004 Board of Supervisors Response to Grand Jury Report No. 0407 Page 3 participate in commission meetings and decisions or votes when substituting for its absent regular commission member. 1(e) The minutes of the 20103 regular meetings of the Commission do not mention any presentations by representatives of grantee organizations or the community at those meetings. Response. No response.* 1(f) The Commissioners appoint, subject to the approval of the Board of Supervisors, an executive director who is responsible for the management of the organization' The Executive Director attends all meetings of the Commission. Response: Partially disagree. The appointment of the Executive director by the First 5 Contra Costa Commission is not subject to the approval of the Board of Supervisors. 2. What First 5 is doing. 2(a) In its early stages, First 5, in collaboration with representatives from the child care community, public agencies, non-profit organizations, and children's advocates, did an overall assessment to determine what they believed to be the needs of children pre-natal to age 5. In a process called MRMA(Meet to— Reach — Mutual—Agreement), it continues to seek such input. Response: No response.* 2(b) It is the policy of First 5 Contra Costa to use its funds to assist, supplement, and enhance the activities of existing county agencies and non-profit organizations (partners), and individuals, which are already providing services associated with First 5 's goals, rather than create new infrastructure for those purposes. This policy has been consistently followed. Response: No response.' 2(c) First 5 makes grants to county agencies and non-profit organizations to advance its strategies in: - Early Childhood Education - Early Childhood Mental Health, Consultation & Therapeutic Services - Family Resource and Learning Centers - Home Visiting Services - Kit for New Barents/Baby Bag Project - Online Information and Referral - Parent Education & Support - Substance Abuse Services - Tobacco Education - Family Friendly Community Grants Tobacco Tax Dollars for Children— How is It Working? August 4, 2004 Board of Supervisors Response to Grand Jury Report No. 0407 Page 4 Response: No response.* 2(d) From its inception thru June 30, 2003, First 5 made grants totaling $20,859,995 to further these strategies. Response: No response.* 2(e) In the fiscal year ended June 30, 2003: - Grants totaling $4.5 million were made to 27 county government and nonprofit organizations; - $343,000 was paid as community grants to 59 other organizations having child related programs; - Grants totaling $3.5 million were made to 1,505 individual child care providers as incentives or them to enhance their child care and development skills; the program was not as successful as hoped and is being replaced with a program having similar goals. Response: NIA. Because the First 5 Contra Costa Commission is a public entity separate from the Contra Costa County, the Board of Supervisors is not directly knowledgeable about this finding. 2(f) While First 5's mission is to assist children pre-natal to age 5 and their families; in doing so, it provides funds to and cooperates with organizations serving a broader age range. Response., NIA. Because the First 5 Contra Costa Commission is a public entity separate from the Contra Costa County, the Board of Supervisors is not directly knowledgeable about this finding. 3. Finances. 3(a) Unlike nearly all County government agencies, First 5 receives its income (other than investment income and grants it applies for from other sources) automatically as long as it stays within the Prop 10 mandate. Response: Agree. 3(b) In 2002-03, First 5 received revenues of$12,673,701, of which $11,969,363 came directly from Proposition 10 tax revenue. Response: No response.* 3(c) For the fiscal year 2003-04, First 5 budgeted $9 million for grants, $2.9 million for Project Support and $0.7 million for Administrative Expense. Project Support and Administrative Expense are the costs of the First 5 operation, as distinguished from the grants it makes to other organizations. Tobacco Tax Dollars for Children —How is It Working? August 4, 2004 Board of Supervisors Response to Grand Jury Report No. 0407 Page 5 Response: No response.* 3(d) First 5's strategy support and administrative expenses for the 2002-2003 fiscal year equated 37% of the grants. The ratio was higher in the earlier, formative years. They are projected to be about 38% for fiscal 2003-2004. These expenses do not include expenses that grantee organizations incur to deliver the services that are the subject of the grants. Response: No response.* 3(e) First 5 anticipates that some agencies and organizations it supports will receive less funding from State and Federal governments because of their budget woes. Response: No response.* 3(f) First 5 has a more predictable source of funds than its grantees, which are more dependent on County, State, and Federal government and private sources and less able to provide services at a consistent level. Response: No response.* 3(g) In 1900, the Commissioners determined that, to ensure its ability to maintain its programs for at least 10 years, it should establish a "Sustainability Fund" so that it could maintain a desired level of service as the costs of delivering services increased and revenue from the tobacco tax decreased. The amount originally thought to be sufficient was $30 million. Rather than embark on programs prematurely, First 5 accumulated most of the money it received in the first years to build up this fund. Its funds, at June 30, 2003, in excess of liabilities, were $41.5 million. Response: No response.* 3(h) First 5 has accumulated $11.5 million more then is required to maintain its sustainability fund. Response: No response.* 4. Other findings. 4(a) As of April 8, 2004, the most current financial information was the"Budget/Actual Comparison for the quarter ended September 30, 2003". More current information is essential to good management. Response: No response.* Tobacco Tax Dollars for Children-- How is It Working? August 4, 2004 Board of Supervisors Response to Grand Jury Report No. 0407 Page 6 4(b) First 5 works with organizations having a range of management and financial sophistication from minimal to comprehensive, which increases First 5 's need for financial acumen. Response: Agree. 4(e) First 5 does not have a listing in any telephone book. Response: No response.* 4(d) A large part of the population First 5 seeks to help is Spanish speaking. Response: No response.* CONCLUSIONS There are many children and families in Contra Costa County that need the type of services that First 5 is designed to provide. The Commission's basic responsibility is to convert the funds it receives into direct services to the children and indirect services to the children through their families and care providers. The sooner First 5 achieves desired results, the fewer the number of children entering school age burdened by health, developmental and social problems. The activities supported by First 5 are so highly dispersed that they risk losing impact. It is difficult, at best, to determine the effectiveness of First 5 's programs, particularly at this early stage. Every child's development is affected by many influences; determining the effect of any one influence is bound to be very subjective. However, First 5 uses "indicators" in evaluating its programs. Examples: cessation of drug or alcohol use in a child's home, enrollment in education programs by care providers, and the number of children participating in the school readiness program. RECOMMENDATIONS The 2003-2004 Contra Costa Grand Jury recommends that: 9. The Commission be alert for opportunities to accelerate delivery of services and be aggressive in overcoming obstacles. Response: No response.* 2. Commission be prepared to increase the amount of grants to a partner if the partner, due to a loss of funding from other sources, would be unable to carry out the strategy without this assistance. Tobacco Tax Dollars for Children— How is It Working? August 4, 2004 Board of Supervisors Response to Grand Jury Report No. 0447 Page 7 Response. No response.* 3. The Board of Supervisors assure that nominees for Commissioner and Alternate be dedicated to the responsibilities of First 5 management and possess related experience and expertise. Response: Has been implemented. Care is taken to assure that all Commission appointees meet the membership criteria prescribed by California law and County Ordinance Code. 4. The Board of Supervisors assure that at least one of the Commissioners representing the Supervisorial Districts has comprehensive understanding of accounting principles and financial reporting for government and non-profit organizations, amending the bylaws if necessary. Response: Will not be implemented because it is not warranted. Four of the nine commissioners either have direct experience with or direct access to expertise on accounting principles and financial reporting for government organizations. Moreover, support services usually provided to county departments are available as necessary to the commission including financial services by the Auditor-Controller and the Treasurer and any legal services required are available from the County Counsel's office. In addition, the Commission has advised that it hired in January 2004 a Fiscal Officer who is responsible for preparing monthly financial reports and the annual financial statement of the Commission. Prior to January 2004, these reports were prepared by a contracted certified public accountant. By law, each year, the Commission's financial statements are subjected to an external audit which is the subject of at least one public hearing. Lastly, placing additional minimum qualifications on one or more of the Commissioners that represent Supervisorial Districts would exacerbate the ongoing challenge of attracting high quality commissioners and filling vacancies promptly. 5. Vacancies on the Commission be filled promptly. Response: Has been implemented. All but one seat on the Commission are currently filled The District 111 Supervisor is currently recruiting to fill the remaining vacancy. 6. Commissioners and Alternates improve their attendance at regular meetings of the Commission and at committee meetings. Response. No response.* 7. The Commission be accessible to recipients of major grants. Response; No response.* Tobacco Tax Dollars for Children —How is It Working? August 4, 2004 Board of Supervisors Response to grand Jury Report No. 0407 Page 8 8. The Commission require major grantees to make regularly scheduled presentations to the Commission. This will give Commissioners a first hand exposure to the people involved, their ideas and recommendations. Response: No response.* g. The Executive Director make available to the Commissioners the evaluations of the strategies for which they contract. Response: No response.* 10. First 5 reduce the project support and administrative costs as a percentage of the annual grants. Response: No response.* 11. Financial information on which the Commissioners rely for guiding First 5 be kept more current than is presently the case. Response: No response.* 12. The Commission exercise its management responsibility to provide more oversight of the First 5 Executive Director and staff. Response: No response.* 18. First 5 have a listing in all Contra Costa telephone books. Response: No response.* 14. First 5 arrange that all organizations to which it provides funds, and are situated in areas having substantial Latino populations, have Spanish speaking ability readily available to callers. Response: No response.* "For explanation,see County's comment on Page 1.