Combined Agency minutes
May 24, 2022
MINUTES OF THE BELMONT CITY COUNCIL AND BELMONT FIRE PROTECTION DISTRICT BOARD OF DIRECTORS MEETING, MAY 24, 2022
SPECIAL MEETING
CALL TO ORDER 6:30 pm
COUNCILMEMBERS PRESENT: Lieberman, Stone, McCune, Mates ABSENT: Councilmember Hurt
ITEMS OF BUSINESS
CLOSED SESSION
Conference with Legal Counsel - Significant Exposure to Litigation (Gov’t Code Section 54956.9(d)(2)), one matter
1. Letter from Kevin Shenkman, Esq. dated July 30, 2021, on behalf of Southwest Voter Registration Education Project alleging violation of California Voting Rights Act demanding the city change to its at-large method of electing councilmembers ADJOURNMENT at this time being 6:55 pm
Jozi Plut
City Clerk
CITY COUNCIL REGULAR MEETING
CALL TO ORDER: 7:00 PM
ROLL CALL
COUNCILMEMBERS PRESENT: Lieberman, Stone, McCune, Mates ABSENT: Hurt
PLEDGE OF ALLEGIANCE
Led by Police Chief Stenquist
REPORT FROM CLOSED SESSION
City Attorney Rennie stated that there are no reportable actions from an earlier held closed session.
SPECIAL PRESENTATIONS (Items taken out of order)
Proclamation Celebrating Pride Month
Mayor Mates read the proclamation.
Ishani Dugar, Program Coordinator with Outlet, thanked the Council for recognizing Pride Month.
Combined Agency minutes
May 24, 2022
Public Safety Employee Recognition and Swearing in of New Employee Chief Stenquist introduced new Belmont PD Staff and Officers. He announced officer promotions.
City Clerk Plut administered the Oath of Office to Members of the Belmont Police Department.
Chief Stenquist recognized PD Department employees and volunteers with outstanding dedication and service awards.
Councilmembers provided comments of congratulations to the staff, officers and service award recipients.
PUBLIC COMMENTS ON ITEMS NOT ON THE AGENDA
Caroline Pyrz commented on the pavement condition in the Homeview neighborhood.
Jane Stahl and Michael Shrader commented on the closure of the Michaelson Therapy Pool in San Mateo.
COUNCILMEMBER ANNOUNCEMENTS
Mayor Mates announced the Pride Month celebration at City Hall. She noted that she attended the Public Works Week events.
CONSENT BUSINES
Resolution 2022-047 finding that the COVID-19 statewide emergency remains in effect and that state and local officials continue to recommend measures to promote social distancing, and directing the Council’s Citizen Advisory Bodies to make consistent findings Approved Minutes of January 11, 2022, Special and Regular Meting Approved April 2022 Monthly Financial Reports
Resolution 2022-048 approving a list of proposed projects for FY 2022-23 funded by The Road Repair and Accountability Act of 2017
Resolution 2022-049 to award the contract to O’Grady Paving Inc. for an amount not to exceed $616,076.75, approving a 15% construction contingency of $92,411.50 for unforeseen conditions for a total amount of $708,488.25 and authorize the City Manager to execute a contract for the Belmont Pavement Preservation Project, City Contract Number Resolution 2022-050 authorizing the City Manager to execute a settlement agreement with Recology San Mateo County (Recology) resolving a dispute related to the 2021 solid waste rates and allocating a portion of the Transitional Rate Stabilization Fees (TRSF) to offset costs during the 2021 rate year
Received an update on the 2022 Strategic Planning Session for Budget Year 2023 ACTION: On a motion made by Councilmember McCune and seconded by Councilmember Stone the Consent Business items were approved by a roll call vote. (3-2 Hurt absent, Stone experienced technical difficulties)
PUBLIC HEARINGS (none)
GENERAL BUSINESS
Introduction of the Proposed Fiscal Year 2023 Budget
Combined Agency minutes
May 24, 2022
Finance Director Castaneda introduced the proposed Fiscal Year 2023 process to date. She stated that the budget is balanced and aligned with the Council Strategic Focus Areas. She noted that the City continues fiscal prudence and remains focused on infrastructure and capital improvement while sustaining long tern needs though community identified priorities.
She noted that due to the COVID-19 Pandemic fiscal challenges remain and explained that the one time funds of $3.7 million received from the American Rescue Plan Act federal funding (ARPA) kept the General Fund total resources at $31 million just above the $28.3 million requirements.
She explained that salaries and wages make up half of the General Fund requirements, typical of service organizations. She noted that property and sales tax make up the half of the General Fund revenues.
She explain impact of the Pandemic to the City’s Transit Occupancy Tax. She noted that because business travel is rebounding at a slower pace than leisure travel the recovery is anticipated to be slower. She further explained that decisions made at the California State of Appeals regarding the Redevelopment Agency residuals also negatively impacts the property tax revenues for 2022. She noted that the City successfully dissolved its Successor Agency and recovery should be seen at the beginning of Fiscal Year 2023. She stated that the mitigated impact is a combined $1.6 million dollars to General Fund and the Belmont Fire Protection District.
Ms. Castaneda described the impacts of the State’s proposed property tax takeaway. She noted that the City is in its third year of a Vehicle License Fees (VLF) shortfall and explained the State is proposal to backfill VLF in-lieu with excess Educational Revenue Augmentation Fund (ERAF) monies taken from future growth. She noted that Belmont’s lost ERAF funds are estimated at $1.8 million over five years and growing to over 7 million for 10-year period and continues to grow in perpetuity. She explained that the State added a provision stating that if cities or counties seek legal action against the State, all future requests for VLF reimbursements will be denied.
Ms. Castaneda provided a General Fund forecast, she noted that the forecast does not predict the impacts of inflation, it assumes current funding will remain intact. She noted that as conditions change the forecast is updated. She explained that the City continues to expand and diversify its revenue base including the formation of a City Services Community Facilities District (CFD).
Ms. Castaneda continued the presentation with the Belmont Fire Protection District (BFPD) projections, se noted that the BFPD does not benefit from VLF or ERAF. She noted that the 5- year fund balance projection is recovering well.
Ms. Castana presented that Capital Improvement Plan (CIP), she noted that the FY 2023 CIP plan is proposed at $19.3 million and a 5-year plan at $72.7 million. She noted that investment continues to streets, sewer and storm improvement projects. She also noted that Measure I funds contribute significantly to said improvements.
Belmont Executive staff presented an overview of their perspective department budget highlights and initiatives.
Combined Agency minutes
May 24, 2022
Ms. Castaneda stated that on June 14th the proposed budget will be before the audit committee for review and recommendations followed by Council final adoption.
In response to Council questions Ms. Castaneda stated that local and state representatives are lobbying the State in regard to the VLF and RAF issues. She stated that the current budget projections do not take into account potential measures to be placed on the November 2022 election ballot.
Councilmember Stone stated that due to the current rise in inflation and fuel costs justification other than recovery of cost model for an increase to the City’s fee schedule is required.
Public Comment
Written comments received.
Councilmember Stone stated his concern with the State’s proposed funding takeaways from local municipal budgets, he stated his support for increasing the Transit Occupancy Tax (TOT) and reiterated the need to justify increase in city fees. He stated his support for the proposed budget as presented.
Councilmember McCune stated his support for the proposed budget as presented. He concurred with the concerns with the States position on revoking local finding.
Councilmember Lieberman concurred with his Council colleagues. He stated support for the proposed budget and continued vigilance to mitigate financial concerns.
Councilmember Mates concurred with her Council colleagues and reiterated the need for caution and conservatism.
BRIEF VERBAL REPORTS FROM MEMBERS AND STAFF
Verbal report from Councilmembers on Intergovernmental (IGR) and Subcommittee Assignments
Councilmembers reported on their IGR assignments.
Verbal report from City Manager
None
MATTERS OF INTEREST/CLARIFICATION (none)
ADJOURNMENT at this time being 9:10 PM in memory of the victims of the Robb Elementary, Uvalde, Texas School shooting and victims of the Geneva Presbyterian Church, Orange County shooting and in memory of Belmont Community Member and youth Advocate Keiko Smith.
Jozi Plut
City Clerk