BOARD MEETING DATE: July 9, 2010
AGENDA NO. 27

PROPOSAL:

Proposed Procedures for Mandated Brown Act Cost Reimbursement by the State of California Controller's Office

SYNOPSIS:

Staff will present information on the Open Meetings/Brown Act Reform Cost Reimbursement Program, which provides reimbursement to local agencies for compliance with the Brown Act.

COMMITTEE:

Administrative, June 11, 2010, Recommended for Approval 

RECOMMENDED ACTIONS:

Receive and file.
 

Barry R. Wallerstein, D.Env.
Executive Officer

Background

The Open Meetings Act/Brown Act Reform (OMA/BAR) state-mandated cost program provides reimbursement from the State to local agencies for costs associated with Brown Act compliance. The program was set aside by the State Legislature in 2005 but was reinstated in 2010 as the result of litigation. The Office of the State Controller provided claim instructions for Fiscal Years 2005-06 through 2008-09 with a filing deadline of May 20, 2010. Staff has filed four claims for this time period totaling $49,463 on behalf of the AQMD using a flat-rate reimbursement method.

There are three methodologies for computing reimbursement – flat rate, standard time and actual time. The flat-rate method provides an allowance per meeting set by the State Controller and adjusted annually, and the only documentation required for audit purposes are the actual meeting agendas. Using the Flat-Rate method the annual average reimbursement for Fiscal Years 2005-06 through 2008-09 was $12,365. This method has a low impact on staff time and resources but yields a smaller reimbursement.

The standard-time method requires increased cost analysis, including calculation of direct and indirect cost, benefits and salaries by classification/individual, and tracking of percentage of time spent on creating and posting agenda items by staff. Recordkeeping would require maintaining agendas and calculation methods for determining productive hourly rate and blended productive hourly rate. This method would also require the implementation of a time-tracking system. Staff estimates that the standard time method would yield a higher reimbursement than the flat rate method of reimbursement.

The actual-time method would require the implementation of a time-tracking system and documentation of reimbursable activities by name, job classification, and productive hourly rate (total wages and related benefits divided by productive hours). The reimbursement is estimated to be higher than the standard time option; however, significant staff time could be required in the event of a state audit.

All methods of reimbursement are subject to an appropriation set in the State Budget, and possible delays and/or reductions in the claim amount paid by the State.

Proposal

Staff has submitted reimbursement requests based on the flat-rate method. Although this method provides the lowest level of reimbursement, the increased staff time required by the other methodologies does not result in a commensurate level of return. Staff will collect and analyze data that may support use of the higher-paying methodologies for subsequent reimbursement periods, and will report to the Board prior to future submissions for reimbursement.