Buellton City Council
May 12, 2022

CITY OF BUELLTON

CITY COUNCIL AGENDA
Regular Meeting of May 12, 2022 – 6:00 p.m.

City Council Chambers, 140 West Highway 246
Buellton, California
Council meetings will be conducted in person and the public is welcome to attend.

Consistent with Assembly Bill 361, written comments will not be read aloud but can be sent to the City Council via email at [email protected] (please reference agenda item number/subject matter, and include your name and address). The public can observe Council meetings via City TV Live Stream at: http://www.cityofbuellton.com/government/cityTV.php Pursuant to AB 361, cities are allowed to hold City Council meetings via teleconferencing and members of the public can observe and address the meeting electronically by clicking here.

CALL TO ORDER
Mayor Holly Sierra

PLEDGE OF ALLEGIANCE

ROLL CALL
Council Members Ed Andrisek, Elysia Lewis, John Sanchez, Vice Mayor Dave King, and Mayor Holly Sierra

REORDERING OF AGENDA

PUBLIC COMMENTS
Speaker Slip to be completed and turned in to the City Clerk prior to commencement of meeting. Any person may address the Council on any subject pertaining to City business, including all items on the agenda not listed as a Public Hearing, including the Consent Agenda and Closed Session. Limited to three (3) minutes per speaker. By law, no action may be taken at this meeting on matters raised during Public Comments not included on this agenda. Public Speakers using a translator are allotted a total of six (6) minutes to speak, unless simultaneous translation equipment is used.

CONSENT CALENDAR (ACTION)
The following items are considered routine and non-controversial and are scheduled for consideration as a group. Any Council Member, the City Attorney, or the City Manager may request that an item be withdrawn from the Consent Agenda to allow for full discussion. Members of the Public may speak on Consent Agenda items during the Public Comment period.

1. Minutes of April 28, 2022 Regular City Council Meeting

2. List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2021/2022

City Council Meeting Agenda Page 2 May 12, 2022

3. Resolution No. 22-17 – “A Resolution of the City Council of the City of Buellton, California, Adopting the Fiscal Year 2022/2023 List of Projects Funded by SB1: The Road Repair and Accountability Act of 2017”
 (Staff Contact: Public Works Director Rose Hess)

4. Financial Report for the Third Quarter Ending March 31, 2022 (Staff Contact: Finance Director Shannel Zamora)

5. Resolution No. 22-15 – “A Resolution of the City Council of the City of Buellton, California, Proclaiming the Continuing Need to Meet by Teleconference”  (Staff Contact: City Attorney Greg Murphy)

6. Approval of Technology Purchase Agreement with GSolutionz to provide Voiceover-Internet Phone (VoIP) Service through Elevate (Staff Contact: Finance Director Shannel Zamora)

PRESENTATIONS

PUBLIC HEARINGS

COUNCIL MEMBER COMMENTS/ITEMS

WRITTEN COMMUNICATIONS
Written communications are included in the agenda packets. Any Council Member, the City Manager, or City Attorney may request that a written communication be read into the record.

COMMITTEE REPORTS
This Agenda listing is the opportunity for Council Members to give verbal Committee Reports on any meetings recently held for which the Council Members are the City representatives thereto.

BUSINESS ITEMS (POSSIBLE ACTION)

7. Presentation by Central Coast Community Energy
 (Staff Contact: City Manager Scott Wolfe)

8. Discussion Regarding Request to Use City-Owned Property at SE Corner of Second Street and Central Avenue for Community Garden
 (Staff Contact: City Manager Scott Wolfe)

9. Resolution No. 22-16 – “A Resolution of the City Council of the City of Buellton, California, for the Purpose of Budget Amendments from Operational Changes Related to Fiscal Year 2021-22 Budget through the Third Quarter Ending March 31, 2022”
(Staff Contact: Finance Director Shannel Zamora)

City Council Meeting Agenda Page 3 May 12, 2022

10. Establishment of City Council Priorities for the Year 2022-23  (Staff Contact: City Manager Scott Wolfe)
CITY MANAGER’S REPORT

ADJOURNMENT
The next regular meeting of the City Council will be held on Thursday, May 26, 2022 at 6:00 p.m.

City Manager Review: SW
Council Agenda Item No.: 1

CITY OF BUELLTON

CITY COUNCIL MEETING MINUTES
Regular Meeting of April 28, 2022
City Council Chambers, 140 West Highway 246
Buellton, California

CALL TO ORDER
Vice Mayor King called the meeting to order at 6:04 p.m.

PLEDGE OF ALLEGIANCE

ROLL CALL

Present: Council Members Ed Andrisek, Elysia Lewis, John Sanchez, and Vice Mayor Dave King
Via Zoom: Mayor Holly Sierra
Staff: City Manager Scott Wolfe (via Zoom), City Clerk Linda Reid, City Attorney Greg Murphy, Public Works Director Rose Hess, Finance Director Shannel Zamora (via Zoom), and Recreation Supervisor Kyle Abello

REORDERING OF AGENDA
None

PUBLIC COMMENTS
Ray Mortezai, owner of San Marcos Motel, read a letter into the record discussing his disapproval with the proposed project at 518 Avenue of Flags due to the density, lack of parking, and the height of the project that reduces his mountain view. Mr. Mortezai asked the Council to consider the density of the proposed project on a 1.22 acre lot.

CONSENT CALENDAR

1. Minutes of April 14, 2022 Regular City Council Meeting

2. List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2021/2022

3. Monthly Treasurer’s Report – March 31, 2022

City Council Meeting Minutes Page 2 April 28, 2022

4. Acceptance of City of Buellton Transportation Development Act (TDA) Fund Financial Statements for Years Ended June 30, 2021 and June 30, 2020 with Independent Auditor’s Report
MOTION:

Motion by Council Member Lewis, seconded by Council Member Sanchez, approving Consent Calendar Items 1 through 4 as listed.

VOTE:

Motion passed by a roll call vote of 5-0.

Council Member Andrisek – Yes
Council Member Lewis - Yes
Council Member Sanchez – Yes
Vice Mayor King – Yes
Mayor Sierra - Yes

PRESENTATIONS

None

PUBLIC HEARINGS

None

COUNCIL MEMBER COMMENTS/ITEMS
Council Member Sanchez thanked the Public Works Department staff for replacing the tattered American flags on the Avenue of Flags.

Mayor Sierra announced that she was invited to meet Vice President Harris at Vandenberg Space Force Base on April 18 and she invited City Manager Wolfe and City Clerk Reid to accompany her to the event and that it was a great experience.

Mayor Sierra announced that the City of Solvang will be spending ten million dollars on wastewater treatment plant improvements and stated that the Buellton City Council made a great decision to purchase the Willemsen property, which will allow expansion of the City’s Wastewater Treatment Plant.

WRITTEN COMMUNICATIONS
None

COMMITTEE REPORTS
Council Member Andrisek announced that he attended the Central Coast Water Authority (CCWA) Board Meeting and provided an oral report regarding the meeting.

City Council Meeting Minutes Page 3 April 28, 2022
Vice Mayor King and Council Member Sanchez announced that they attended an Ad Hoc Committee meeting pertaining to the Santa Ynez Valley Community Aquatics Center and provided an oral report for the record.

Council Member Sanchez announced that he attended the Buellton Chamber of Commerce and Visitors Bureau board meeting and provided an oral report for the record.

Council Member Sanchez announced that he attended the Arts & Culture Committee meeting and provided an oral report for the record.

BUSINESS ITEMS

5. Consideration of Arts & Culture Project Applications:

A. Santa Ynez Botanic Garden Video
B. Art on the Avenue
RECOMMENDATION:

That the City Council consider approving funding for the Santa Ynez Botanic Garden Video project in the amount of $5,000 and the Art on the Avenue project in the amount of $10,000.

STAFF REPORT:

Recreation Supervisor Abello presented the staff report.

SPEAKERS/DISCUSSION:

A. Santa Ynez Botanic Garden Video
The City Council questioned how the videos will be distributed upon completion. The video project creator, Grey Bear Erickson stated he would like the videos to be available via YouTube and various social media outlets. He announced that the video footage will be owned by the City to be used for promotional purposes. Mr. Erickson was asked to return to a future Council meeting to display the completed video project.

SPEAKERS/DISCUSSION:

B. Art on the Avenue
Kristin Merz, spoke about the Art on the Avenue project and indicated the project will contain eight designs to be used for social media and for light pole banners in the City.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

MOTION:

Motion by Council Member Lewis, seconded by Council Member Sanchez, approving funding for the Santa Ynez Botanic Garden Video project in the amount of $5,000.

City Council Meeting Minutes Page 4 April 28, 2022
VOTE:

Motion passed by a roll call vote of 5-0.

Council Member Andrisek – Yes
Council Member Lewis – Yes
Council Member Sanchez - Yes
Vice Mayor King – Yes
Mayor Sierra – Yes
MOTION:

Motion by Mayor Sierra, seconded by Council Member Lewis, approving funding for the Art on the Avenue project in the amount of $10,000.

VOTE:

Motion passed by a roll call vote of 5-0.

Council Member Andrisek – Yes
Council Member Lewis – Yes
Council Member Sanchez - Yes
Vice Mayor King – Yes
Mayor Sierra – Yes

6. Consideration of Request for Sheriff Deputies for Open Streets Event RECOMMENDATION:

That the City Council consider funding two extra duty Sheriff Deputies for the Open Streets event on October 30, 2022.

STAFF REPORT:

Recreation Supervisor Abello presented the staff report.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

MOTION:

Motion by Mayor Sierra, seconded by Council Member Lewis, approving funding two extra duty Sheriff Deputies for the Open Streets event on October 30, 2022.

VOTE:

Motion passed by a roll call vote of 5-0.

Council Member Andrisek – Yes
Council Member Lewis - Yes
Council Member Sanchez - Yes
Vice Mayor King – Yes
Mayor Sierra – Yes

City Council Meeting Minutes Page 5 April 28, 2022

7. Selection of Auditor for Fiscal Years Ending June 30, 2022, 2023 and 2024, with the City’s Option for Renewal for Two Subsequent Fiscal Years RECOMMENDATION:

That the City Council authorize the City Manager to enter into a three-year contract with the firm of Moss, Levy & Hartzheim, LLP for auditing services for the Fiscal Years ending June 30, 2022, 2023, and 2024, with the City’s option for renewal for each of the two subsequent fiscal years.

STAFF REPORT:

Financed Director Zamora presented the staff report.

DOCUMENTS:

Staff Report with attachments as listed in the staff report.

MOTION:

Motion by Council Member Lewis, seconded by Council Member Andrisek, authorizing the City Manager to enter into a three-year contract with the firm of Moss, Levy & Hartzheim, LLP for auditing services for the Fiscal Years ending June 30, 2022, 2023, and 2024, with the City’s option for renewal for each of the two subsequent fiscal years.

VOTE:

Motion passed by a roll call vote of 5-0.

Council Member Andrisek – Yes
Council Member Lewis – Yes
Council Member Sanchez – Yes
Vice Mayor King – Yes
Mayor Sierra – Yes

8. Resolution No. 22-13 – “A Resolution of the City Council of the City of Buellton, California, Declaring Stage Two Water Conservation Requirement Pursuant to the State’s Water Conservation Emergency Regulations”
RECOMMENDATION:

That the City Council adopt Resolution No. 22-13.

STAFF REPORT:

Public Works Director Hess presented the staff report.

SPEAKERS/DISCUSSION:

Len Fleckenstein, Buellton, submitted written comments for the record expressing support for Resolution No. 22-13.

Nancy Emerson, WE Watch, submitted written comments for the record expressing support for Resolution No. 22-13.

City Council Meeting Minutes Page 6 April 28, 2022
DOCUMENTS:

Staff report with attachments as listed in the staff report.

MOTION:

Motion by Council Member Sanchez, seconded by Council Member Andrisek, adopting Resolution No. 22-13 - “A Resolution of the City Council of the City of Buellton, California, Declaring Stage Two Water Conservation Requirement Pursuant to the State’s Water Conservation Emergency Regulations”
VOTE:

Motion passed by a roll call vote of 5-0.

Council Member Andrisek – Yes
Council Member Lewis – Yes
Council Member Sanchez – Yes
Vice Mayor King – Yes
Mayor Sierra – Yes

9. Authorization to Reclassify Position in the Planning Department, Adopt Associated Job Description, and New Salary Range
RECOMMENDATION:

That the City Council authorize the reclassificaton of a position in the Planning Department, adopt the associated job description, and new salary range.

STAFF REPORT:

H.R. Director Reid presented the staff report.

SPEAKERS/DISCUSSION:

Vice Mayor King discussed the current labor market shortage.

DOCUMENTS:

Staff report with attachments as listed in the staff report.

MOTION:

Motion by Vice Mayor King, seconded by Council Member Lewis authorizing the reclassification of a position in the Planning Department (Assistant/Associate Planner), adopt the associated job description/salary range, abolish the original Assistant Planner classification, and direct staff to create the appropriate budget adjustment.

City Council Meeting Minutes Page 7 April 28, 2022
VOTE:

Motion passed by a roll call vote of 5-0.

Council Member Andrisek – Yes
Council Member Lewis – Yes
Council Member Sanchez - Yes
Vice Mayor King – Yes
Mayor Sierra – Yes

ADJOURNMENT
Vice Mayor King adjourned the regular meeting at 6:51 p.m. The next regular meeting of the City Council will be held on Thursday, May 12, 2022 at 6:00 p.m. _________________________________
Dave King
Vice Mayor
ATTEST:
_________________________________
Linda Reid
City Clerk

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 2

To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: May 12, 2022
Subject: List of Claims to be Approved and Ratified for Payment to Date for Fiscal Year 2021/2022
______________________________________________________________________________

BACKGROUND
Staff is required to submit a check register to the City Council for approval every council meeting for the most recently completed check register (Attachment 1).

The check register for the period 04/16/2022 through 04/29/2022 has been prepared in accordance to Government Code section 37202 and Buellton Municipal Code section

3.08.070. The check register lists all vendor payments for the specified period above, along with claimant’s name, a brief description of the goods or service purchased, amount of demand, check number, check date and the account number(s) associated with each payment.

The total amount of checks, 04/16/2022 through 04/29/2022, and electronic fund transfers issued for the period of 04/16/2022 through 04/29/2022 was $339,841.26.

FISCAL IMPACT
Payments made to the various vendors were consistent with the approved City’s Budget for FY 2021/22. Cash is available for the payment disbursements of the above liabilities.

RECOMMENDATION
That the City Council review and accept the check register for the period 04/16/2022 through 04/29/2022.

ATTACHMENTS
Attachment 1 – Claims

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 3
To: The Honorable Mayor and City Council
From: Rose Hess, Public Works Director
Meeting Date: May 12, 2022

Subject: Resolution No. 22-17 - “A Resolution of the City Council of the City of Buellton, California, Adopting the Fiscal Year 2022/2023 List of Projects Funded by SB1: The Road Repair and
Accountability Act of 2017”
______________________________________________________________________________

BACKGROUND
In April 2017, the Governor signed Senate Bill 1 (SB1), also known as the Road Repair and Accountability Act (RRAA) of 2017. Beginning November 1, 2017, the State Controller will begin to deposit funds generated from increased fuel taxes and vehicle registration fees, into the newly created Road Maintenance and Rehabilitation Account (RMRA). The four sources of revenues for the RMRA are:
 A 12-cent per gallon gasoline excise tax, effective November 1, 2017  A 20-cent per gallon diesel excise tax increase, effective November 1, 2017  Vehicle registration surcharge, effective January 1, 2018  A $100 per year zero-emission vehicle registration surcharge, effective January 1, 2020
A portion of the RMRA funds will be distributed annually to eligible cities and counties for basic road maintenance, rehabilitation, and critical safety projects on local streets and road systems. The distribution will be made using the same formula that applies to the existing base 18-cent per gallon gasoline excise tax. The City’s annual allocation estimate for FY 2022/23 is $123,889.

SB1 emphasizes the importance of accountability and transparency in the delivery of California’s transportation programs. As outlined in the RRAA Reporting Guidelines, recipients of the RMRA funding are held accountable through performance goals that are tracked and reported. In order to be considered for funding in Fiscal Year 2022/23, agencies must provide a proposed list of projects to the California Transportation Committee by July 1, 2022. Exhibit A to Resolution 22-17 is the list of streets included in the 2022/23 Road Maintenance Project. This will enable the RMRA funds to be included in the City’s annual road maintenance budget.

Resolution No. 22-17 Page 2 May 12, 2022
In addition to an approved project list, the guidelines state all projects proposed to receive funding shall be included in the agencies’ adopted budgets. The FY 2022/23 Road Maintenance Project has already been identified as CIP # 092-321.

Also, this bill includes a “Maintenance of Effort” (MOE) requirement for local funds contributed to street and road repairs to help ensure that the new funding augments existing budgets for road repairs. Specifically it requires each city to spend no less than the annual average from its general fund during FY 2010 through FY 2012. The estimated MOE for the City of Buellton (posted on August 7, 2017) is $98,220.

FISCAL IMPACT
Estimated FY 2022/23 annual revenue anticipated from SB1 is approximately $123,889.

This amount will be included in the Revenues for FY 2022/23 and add this as a funding source for CIP# 092-321. These monies will augment the General, Gas Tax and Measure A funds for the annual road maintenance project.

RECOMMENDATION
That the City Council consider adoption of Resolution No. 22-17 – “A Resolution of the City Council of the City of Buellton, California, Adopting the Fiscal Year 2022/23 List of Projects Funded by SB1: The Road Repair and Accountability Act of 2017”

ATTACHMENTS
Resolution No. 22-17 (Exhibit A)

RESOLUTION NO. 22-17

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF BUELLTON, CALIFORNIA, ADOPTING THE FISCAL
YEAR 2022/2023 LIST OF PROJECTS FUNDED BY SB1:

THE ROAD REPAIR AND ACCOUNTABILITY ACT OF
2017
WHEREAS, Senate Bill 1 (SB1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statues of 2017) was passed by the Legislature and signed into law by the Governor in April 2017 in order to address the significant multi-modal transportation funding shortfalls statewide; and
WHEREAS, SB1 includes accountability and transparency provisions that will ensure the residents of our City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and WHEREAS, the City must adopt by resolution a list of all projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB1, which must include a description and location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City of Buellton will receive an estimated $123,889 in RMRA funding in Fiscal Year 2022/23 from SB1; and
WHEREAS, this is the fourth year in which the City of Buellton is receiving SB1 funding and will enable the City of Buellton to continue essential road maintenance and rehabilitation projects, safety improvements, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB1; and WHEREAS, the City of Buellton has a public process to ensure public input into our community’s transportation project list; and
WHEREAS, the City of Buellton regularly and routinely reviews its pavement management plan to ensure that all areas of the community’s transportation system are addressed; and
WHEREAS, the funding from SB1 will help the City of Buellton maintain and rehabilitate its streets/roads and active transportation infrastructure throughout the City this year and into the future; and

Resolution No. 22-17 Page 2 May 12, 2022
WHEREAS, the SB1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting edge technology, materials and practices, will have significant positive benefits statewide.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Buellton as follows:

SECTION 1. The City Council finds that all of the above recitations are true and correct and, accordingly, are incorporated as a material part of this Resolution.

SECTION 2. The biennial budget for fiscal years 2021/22-2022/23 shall include $123,889 of SB1 monies under the Schedule of Revenues for FY 2022/23.

SECTION 3. The City of Buellton does hereby adopt the attached list of streets that will be included in the FY 2022/23 Road Maintenance Project (Exhibit “A”) to be funded in part with SB1 revenues.

SECTION 4. The City of Buellton certifies that it will include in its budget an amount of local discretionary funding for local streets and roads sufficient to comply with the Maintenance of Effort requirements for SB1.

SECTION 5. The City of Buellton has complied with all other applicable provisions and requirements of SB1.

SECTION 6. The City Clerk shall certify to the adoption of this Resolution.

PASSED, APPROVED and ADOPTED this 12
th day of May, 2022.
_________________________________
Holly Sierra
Mayor
ATTEST:
__________________________________
Linda Reid
City Clerk

EXHIBIT A
CITY OF BUELLTON SB1 – 2022/23 PROJECTS:

FY 2022-23 ROAD MAINTENANCE PROJECT CIP # 092-321
Road maintenance activities to include crack sealing, localized ac removals and replacement and type II slurry seal with black rock, pavement markings and striping and appurtenant repairs such as curb and gutter and sidewalk repairs.

Estimated Schedule – Design – Winter 2022-23, Construction Spring/Summer 2023 Estimated Useful Life = 15 years
STREETS INCLUDED:
 Easy Street
 Commerce Drive
 Thomas Road
 Central Ave (south of SR246)
 Zaca Street
 Six Flags Circle
 Victory Drive
 Shadow Mountain Drive,
 Freedom Place
 Bundy Circle
 Bear Creek Drive
2022/23 Road Maintenance

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 4

To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: May 12, 2022
Subject: Financial Report for the Third Quarter Ending March 31, 2022 ______________________________________________________________________________

BACKGROUND
Four times each year, City staff completes a comprehensive analysis of City finances, including projected fund balances, revenues to date, departmental budgets, expenditures, encumbrances and potential budget adjustments. This financial report focuses on the Third Quarter of FY 2021-22 and summarizes the quarter ended March 31, 2022 for the General Fund, Enterprise Funds and Capital Improvement Fund.

Attachment 1 provides an overview of the current economic outlook on the local, state and national levels; General Fund revenues, expenditures, projected fund balances; and activity in the Enterprise Funds. Though this information is not audited and does not contain all the usual periodic adjustments, accruals or disclosures, the information does provide a picture of the City’s activity and developing financial trends. Attachment 2 focuses on the status of the Capital Improvement Budget at the end of the quarter ended March 31, 2022.

FISCAL IMPACT
The Interim financial statement provides the community with an understanding of the financial activity of the City’s primary funds.

RECOMMENDATION
That the City Council receive and file the Third Quarter Financial Report.

ATTACHMENTS
Attachment 1 - Quarterly Financial Report for the period March 31, 2022 Attachment 2 - Quarterly Capital Improvement Project Report for the period ending March 31, 2022

Unaudited Financial Data
Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 1

CITY OF BUELLTON

QUARTERLY FINANCIAL REPORT
Third Quarter Ending March 31, 2022
May 12, 2022
Overview
The purpose of this financial report is to provide
financial information for the City of Buellton. This
report focuses on the third quarter of fiscal year
2021/22 and covers the period July 1, 2021 through
March 31, 2022. The report is presented quarterly
and concentrates on the General Fund and
Enterprise Funds. The quarterly financial report
presents the City’s financial position, considers
economic factors and highlights trends based on the
City’s budget versus what actually occurred during
the period. A discussion of other economic factors
provides a means of comparing the local economy
against larger economic events that may affect the
City of Buellton. This quarterly financial report is a
valuable tool to the Council, staff and general public.

U.S. Economy
The year 2022 started off with rising COVID-19 cases
which hampered activities after the Holidays. In
addition, inflation surged at levels not seen since the early 1980s, and the Russian invasion of Ukraine in
February contributed to the current economic
status. Prices for energy, agricultural commodities,
and metals have spiked as a result of the invasion.

Gross domestic product (GDP) in the U.S. declined
at a 1.4 percent pace in the first quarter of 2022. The decline mostly resulted from the way inventories
and trade figures are calculated, as well as a
reduction in government spending as COVID-19
efforts wind down.

Even with inflation, consumer spending rose. In an
effort to slow price increases, the Federal Reserve
plans to enact a series of rate hikes throughout the
year.

According to the BLS, the consumer price index (CPI)
for all items over the last 12 months rose 8.5
percent. Increases in the indexes for gasoline,
shelter, and food were the largest contributors to
the increase. The gasoline index rose 18.3 percent in
March and accounted for almost half of the all-items
monthly increase.

According to the Bureau of Labor Statistics(BLS), the
national unemployment rate through March 2022
was 3.6 percent. Total nonfarm payroll employment
rose by 431,000. Notable job gains continued in
leisure and hospitality, in professional and business
services, retail trade and manufacturing.

State Economy
According to the Employment Development
Department (EDD), California’s unemployment rate
fell to 4.9 percent in March 2022 compared to 5.3
percent in February 2022 and 8.4 percent in March
2021. California has regained 90 percent of nonfarm
jobs lost during March and April of 2020 due to the
COVID-19 pandemic. For the second month in a row,
none of California’s 11 industry sectors lost jobs and
the Leisure and Hospitality sector posted the largest
job growth. Professional & Business Services also
posted a large increase due to Accounting, Tax
Preparation and Bookkeeping services.

According to the BLS, CPI in California’s Los Angeles
area in March 2022, increased 8.5 percent from a
year ago. Food prices increased 8.6 percent and
energy prices increased 36.7 percent, largely the
result of an increase in the price of gasoline. CPI for all items less food and energy increased 6.2 percent
over the year. The factors contributing to the
increase include prices of new and used motor
vehicles (17.9 percent), household furnishing and
operations (12.7 percent), recreation (11.1 percent)
and shelter (4.1 percent).

According to HDL, housing demand in California
remained strong through the end of March 2022.

Unaudited Financial Data
Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 2

The effects of rising interest rates have yet to unfold while the statewide median home price set another
record high at $849,080, primarily due to a surge in
sales of higher-priced homes. The March 2022
median price was 11.9 percent higher than what
was recorded in March 2021, and up 10.1 percent
from a month ago in February. The median price in
California rose above the $800,000 benchmark for
the first time in 6 months.

City of Buellton
The City’s General Fund ended the third quarter of
2021/22 with about $9.7 Million in Cash Balance of
which $114,345 is reserved for the ENGIE Energy
Project. Revenues reached 58.24 percent of budget
while expenditures ended the quarter at 62.28
percent of budget.

The City has experienced a fast recovery from
previous revenue losses at the start of the
pandemic. The City is heavily reliant on sales tax and
transient occupancy taxes (TOT) which were the two
revenue sources hardest hit by the pandemic. The
City’s hotel occupancy rates continue to increase to
pre-pandemic levels. Sales tax showed drastic
improvement as well. This trend is expected for the
current fiscal year. The City is fortunate that these
two revenue streams exceeded budget projections
for Fiscal Year 2020-21 and continue to exceed
projections for the current fiscal year.

The Water Fund ended the third quarter with a Fund
Balance of about $6.5 Million and $6.1 Million in
cash of which $420,996 is reserved for the ENGIE
Energy Project. Water Fund Operating revenues
ended the third quarter at 74 percent while
operating expenditures were at 69 percent.

The Sewer Fund ended the third quarter with a Fund
Balance of about $2.4 Million and $2.6 Million in
cash of which $89,394 is reserved for the ENGIE
Energy Project. Wastewater operating revenue
ended the third quarter at 77 percent while
expenditures were at 67 percent.

As a response to the pandemic, on April 1, 2020, City
Council passed Resolution No. 20-10, authorizing
the deferral of water and wastewater payments and
the waiving of fees. The City had many residents
take advantage of the deferral. This deferment
ended December 31, 2021. Penalties and water
reconnection fees have resumed.

Unaudited Financial Data
Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 3

GENERAL FUND
General Fund Balance
Table 1 below shows that with 75 percent of the fiscal year complete, revenues are below projections at about 58 percent while expenditures are within budget at about 62 percent of appropriations.“Revenue versus budget” gaps are explained in the next section.

General Fund - Fund Balance Original Budget Current Budget Actual Percent Fund Balance at Start of Year $ - $ - $ 9,668,279
Revenues* 11,166,928 11,883,570 $ 6,921,078 58.24%
Expenditures* (10,439,197) (10,595,288) $ (6,599,169) 62.28% Fund Balance at End of Quarter $ 9,990,188
Change in Fund Balance 727,731 1,288,282 $ 321,909
* Includes transfers for Capital Improvement Projects
Table 1: General Fund Balance
Table 2 below provides summary comparison information on revenues and expenditures through the quarter ending March 31, 2022 versus the prior year quarter ending March 31, 2021.

Q3 FY 2021-22 Q3 FY 2020-21
Increase
(Decrease) Percent
Revenues:

Taxes $ 6,281,032 $ 5,164,191 $ 1,116,841 21.63%
Fees and Permits 18,587 11,885 $ 6,702 56.39%
Fines and Penalties 7,900 6,085 $ 1,815 29.83%
Charges for Current Services 109,824 65,801 $ 44,024 66.90% Use of Monies and Properties 21,366 88,718 $ (67,352) -75.92% Revenue from Other Agencies 467,789 473,988 $ (6,198) -1.31% Other Revenue* 14,580 844,776 $ (830,197) -98.27%
Total Revenue $ 6,921,078 $ 6,655,443 $ 265,634 3.99%
Expenditures:

Employee Services $ 1,488,068 $ 1,421,992 $ 66,076 4.44% Operating and Maintenance $ 4,304,785 $ 3,778,523 $ 526,262 12.23% Transfers for Capital Outlay $ 789,223 $ 1,702,124 $ (912,901) -115.67% Minor Capital 17,092 51,170 (34,077) -199.37%
Total Expenditures $ 6,599,169 $ 6,953,808 (354,640) -5.37% Change in Fund Balance $ 321,909 $ (298,365) 620,274 -207.89% Table 2: Previous Year Comparison
* Misc. Revenue and Cost Reimbursements

Unaudited Financial Data
Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 4

Total revenues during the current fiscal year are $265,634 (3.99%) higher than the previous fiscal year during the same quarter. Total expenditures are $354,640 (5.37%) lower than the previous fiscal year during the same quarter.

The revenue category with the largest increase was the “Taxes” category. Most of the revenue gain in this category is attributed to the rapid recovery in Transit Occupancy Tax (TOT) revenue. Compared to the same prior year quarter, TOT revenue is $1,122,368 (57.47%) higher.

The revenue category with the second largest increase was the “Charges for Current Services” category. The increase is due to revenue from park reservation fees. Last year through the same quarter, the City was under the Shelter-at-Home order and was not accepting park reservations. Since the economy opened back up after June 15, 2021, the number of park reservations has increased, and the City is generating revenue from this source once again. In addition, revenue generated from the Buellton Recreation Center has increased as more sessions and programs are being offered.

The revenue category with the largest decrease was “Other Revenue”. Last year, the City recognized $829,589 in capital lease proceeds from Sterling National Bank to fund the ENGIE energy savings projects. New revenue in “Other Revenue” includes General Liability insurance refund of $4,855, the first of 5 annual installments.

The revenue category with the second largest decrease in revenue was “Use of Monies and Properties” category. With interest rates at a historic low, monies invested with the Local Agency Investment Fund (LAIF) earned an interest rate of .32%, or $3,381 in interest revenue as of March 31, 2022 compared to last year’s earnings at .44% or $3,907. In addition, the fair value of some the Certificate of Deposits (CDs) held by the City have decreased in value. Per GAAP, the City recognizes increases/decrease in fair market value as interest revenue.

Total General Fund expenditures are $354,640 (5.37%) less compared to the prior year quarter ended March 31, 2021. The majority of the decrease in General Fund expenditures is in the Transfer for Capital Outlay category. Last fiscal year, the majority of those expenditures were for the constuction of Median 2. That project was completed in August 2021. The current General Fund Capital Improvement Projects expenditures are:
 Road Maintenance Project FY 2020/21 YTD expenditure $195,670  McMurray Road Widening YTD expenditures $86,778
 Completion of Median 2 at Avenue of Flags $56,689
 ENGIE energy savings project YTD expenditures $450,086 General operating and maintenance expenditures increased $526,262 (12.23%) compared to the prior year quarter. The majority of the increase was in the increased cost of Sheriff services ($260,762.17 or 16.15% higher than previous year quarter). In addition, the cost for Fire Department services increased $14,000 from the prior year quarter. Other factors that contributed to the increase in expendituers include a $25,000 increase in the CalPERS Unfunded Accrued Liability (UAL), increase of $5,400 for community organization support, $34,305 in principal and interest expenditure, along with other increases in contract services such as the landscape maintenance contract, which now includes the Willemsen Property. Furthermore, there were various unexpected repairs throught the City that required immediate response.

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Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 5

Employee services increased $48,057 (4.66%) from the prior year quarter. The increase is due to a 2% cost-ofliving adjustment for full-time employees effective July 1, 2021. In addition, City Council authorized the reclassification of the Parks Foreman to Facilities Supervisor/Utility Fieldworker and Facilities Maintenance Worker to Facilities Foreman/Utility Fieldworker, which required a higher salary. Furthermore, a proposed increase in salary step levels was approved for the Maintenance and Utility Fieldworker I, Staff Assistant/Planning Technician and Youth Recreation Coordinator.

A decrease in Minor Capital was the result of the prior year acquisition of security cameras at City parks and message board trailer.

Top Five Revenues
*Other Revenues include charges for current Park and Recreation Services, Grants, Interest, and Cost Reimbursements.

Sales Tax
At the end of the third quarter, the City received 72 percent of the total projected Sales Tax revenue. Payments are recorded when received and applied to the corresponding month of sales; usually payment is received from the State of California two months after the sales tax is collected. Revenue from sales tax has been received through February 2022. Sales Tax revenue fluctuates each month in conjunction with seasonal flows.

Transient Occupancy Tax (TOT)
TOT revenue is a major component of the City’s General Fund. TOT payments for the reporting period are due on the 20th of the following month and cause revenue streams to lag one month. The City received 85 percent of anticipated revenue at the end of the third quarter. Projected revenue is expected to exceed budget projections by the end of the fiscal year.

Property Tax
The City’s property tax revenues are at intervals set by the Santa Barbara County Auditor-Controller, usually in December and April. Property tax is at 58 percent of projected revenue and is expected to meet budget projections by the end of the fiscal year. The City’s ongoing share of property tax is projected to increase as property values continue to grow and new development is added to the City’s property assessed value.

Top Five Revenues
Original
Budget
Current
Budget YTD Actual Percent
Sales Tax $ 2,805,724 $ 2,805,724 $ 2,028,413 72%
Transient Occupancy Tax 2,856,358 3,600,000 3,075,185 85% Property Tax 1,739,052 1,739,052 1,015,730 58%
MVLF Swap 552,716 552,716 278,204 50%
Franchise Fees 308,265 308,265 161,704 52%
Other Revenues* 588,117 588,117 361,842 62%
Total Revenues $ 8,850,232 $ 9,593,874 $ 6,921,078 72%
Use of Reserves 2,316,696 2,316,696 - 0%
Total Funding Sources $ 11,166,928 $ 11,910,570 $ 6,921,078 58% Table 3

Unaudited Financial Data
Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 6

Property Tax in Lieu of Motor Vehicle License Fee (MVLF Swap) Payments from the Santa Barbara County Auditor-Controller are received throughout the year, usually January and June. The City has received 50 percent of projected MVLF revenue. This revenue is trending upwards based on historic receipts. MVLF fees are expected to be on course within budget by the end of the fiscal year.

Franchise Fees
Franchise fees are received monthly, quarterly and annually. The majority of the City’s Franchise Fees are collected from Marborg Industries, the City’s solid waste service provider. Other franchise fees are received from Comcast, PG&E and SoCal Gas. Franchise fees ended the third quarter at 52 percent. PG&E and SoCal Gas franchise fees are received in April. This revenue source experiences time delays and is expected to be on target by the end of the fiscal year.

Expenditures
Table 4 below summarizes operating costs by department. As of March 31, 2022, or 75 percent of the year expended, the General Fund ended the fiscal year at 45 percent expended (including CIP). Actual General Fund expenditures were approximately $6.6 Million. Almost all Budget Units ended the third quarter within budget with the exception of Non-Departmental, Library and Recreation.

Department Expenditures
Adopted
Budget
Current
Budget YTD Actual % Expended
City Council 156,170 156,170 103,713 66%
City Manager 293,710 295,310 212,134 72%
City Clerk/Human Resources 135,201 135,201 91,905 68%
City Attorney 195,000 195,000 100,853 52%
Non-Departmental 1,123,449 1,103,810 870,447 79%
Finance 209,123 209,123 154,873 74%
Police and Fire 2,725,148 2,725,148 2,048,936 75%
Library 199,929 199,929 198,940 100%
Recreation 624,103 628,759 492,734 78%
Street Lights 65,000 65,000 39,876 61%
Storm Water 335,700 335,700 108,772 32%
Public Works - Parks 440,685 461,839 329,612 71%
Public Works - Landscape 166,985 180,785 78,917 44%
Public Works - General 732,702 732,702 483,634 66%
Planning (Comm Dev) 719,596 854,116 494,600 58%
Transfer to CIP Fund 92 2,316,696 2,316,696 789,223 34% Total All Departments 10,439,197 10,595,288 6,599,169 62% Table 4: General Fund Expenditures by Department
The Non-Departmental budgetary unit includes one-time annual payments paid during the First quarter. Those annual payments include: Property and liability insurance, Worker’s Compensation Insurance, CalPERS Accrued Unfunded Liability (UAL), support for community organizations and support for the Buellton Senior Center.

These annual payments amount to approximately $294,000 which is about 34 percent of the total year-to-date expenditures. Other significant expenditures in Non-Departmental include monthly payment for contract services with the Buellton Visitors Bureau and monthly lease payments for office equipment.

Top Five Revenues for the City of Buellton’s General Fund are Sales Tax, Property Tax, Transient Occupancy Tax (TOT), Motor Vehicle License Fee (MVLF) and Franchise Fees. These revenues account for about 94% of total General Fund Revenues.

Unaudited Financial Data
Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 7

The City of Buellton contracts with the City of Goleta for Library services. The annual cost of providing library services is paid as a lump-sum in July causing the Library Department to nearly meet its budget at the end of the first quarter. The Library Department is expected to remain within budget at the end of the fiscal year.

The Recreation department is slightly over budget projections. Overages in the Recreation Department are mainly due to unexpected repairs, merchant fees for online credit card transactions as more customers purchase Recreation Programs online, and correction of benefit expenditure. These overages will require a budget amendment.

Major Expenditure Variances
Expenditures By Type
Original
Budget
Current
Budget YTD Actual
% of Total
Expenditures % Expended
Staffing 2,070,896 2,070,296 1,488,067 22.5% 71.9%
Contract Services 4,444,599 4,594,434 3,281,918 49.7% 71.4% Telecomm and Utilities 302,296 302,296 210,760 3.2% 69.7% Supplies and Materials 27,475 27,475 21,134 0.3% 76.9%
Repair and Maintenance 305,165 315,821 200,269 3.0% 63.4% Transfer to Other Funds 2,342,275 2,342,275 789,223 12.0% 33.7% Other Operating Costs 910,491 904,491 595,386 9.0% 65.8% Minor Capital 36,000 38,200 12,411 0.2% 32.5%
Total by Type 10,439,197 10,595,288 6,599,169 100.0% 62.3% Table 5: Expenditure Categories
Table 5 and Figure 1 above show General Fund operating costs and minor capital expenditures summarized by type. With 75 percent of the fiscal year completed, one of the budget categories exceeds budget projections.

The top three spending categories are: Contract Services, Staffing, and Transfer to Other Funds. Contract Services include services for Police, Fire Department, Legal Services, Engineering, Landscaping Services, Visitor’s Bureau services and other services.

The Supplies and Materials category is slightly over budget and is expected to be within budget at year-end.

Staffing, 22.55%
Contract Services,

49.73%
Telecomm and
Utilities, 3.19%
Supplies and
Materials, 0.32%
Repair and
Maintenance,

3.03%
Transfer to Other
Funds, 11.96%
Other Operating
Costs, 9.02%
Minor Capital,

0.19%
Expeditures By Type
Figure 1

Unaudited Financial Data
Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 8

General Fund Trend
Figure 2 illustrates the Quarterly General Fund Revenue versus Expenditure Trend. As illustrated in the figure, revenue cash flows tend to lag a couple of quarters and usually exceed expenditures by the end of the fiscal year.

$0
$5,000,000
$10,000,000
$15,000,000
FY 18-19 Q1FY 18-19 Q2FY 18-19 Q3FY 18-19 Q4FY 19-20 Q1FY 19-20 Q2FY 19-20 Q3FY 19-20 Q4FY 20-21 Q1FY 20-21 Q2FY 20-21 Q3FY 20-21 Q4FY 21-22 Q1FY 21-22 Q2FY 21-22 Q3 Quarterly Rev vs. Exp
Revenue
Expenditures
Figure 2

Unaudited Financial Data
Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 9

ENTERPRISE FUNDS
The Enterprise Fund Balance and Statement of Net Position for the Third Quarter of Fiscal Year 2021-22 are shown below.

Fund Balance Summary
Enterprise Fund Balance Water Water Capital Wastewater
Wastewater
Capital
Beginning Fund Balance $ 7,181,784 $ 376,774 $ 3,245,026 $ 217,513 Operating Revenue & Transfers 1,974,344 15,190 942,335 - Operating Expenses & Transfers (2,612,343) (55,758) (1,711,891) (48,264) Profit(Loss) $ (638,000) $ (40,568) $ (769,555) $ (48,264) Ending Fund Balance $ 6,543,784 $ 336,206 $ 2,475,470 $ 169,249 Change in Fund Balance (638,000) (40,568) (769,555) (48,264) Table 6 Note: Operating expenses excludes depreciation.

Table 6 illustrates the ending Fund Balance of each Enterprise Fund. The change in Fund Balance is attributed to the excess or deficit of revenue over expenses. Table 7 is the Statement of Net Position and illustrates total assets minus total liabilities for the period.

Statement of Net Position Water Water Capital Water Funds Total Wastewater
Wastewater
Capital
Wastewater
Funds Total
ASSETS
Current assets:

Cash and Investments 6,153,475 (1,182,920) 4,970,555 2,692,682 (613,761) 2,078,922 Receivables 213,270 - 213,270 156,689 - 156,689
Inventory 33,962 - 33,962 - - -
Prepaid Items 260,995 - 260,995 2,500 - 2,500
Total current assets 6,661,702 (1,182,920) 5,478,782 2,851,871 (613,761) 2,238,111 Capital assets (net of
accumulated depreciation) 2,523,855 1,519,126 4,042,981 1,464,317 783,010 2,247,327 Other assets 125,900 - 125,900 125,796 - 125,796
- -
Total Assets: $ 9,311,457 $ 336,206 $ 9,647,663 $ 4,441,984 $ 169,249 $ 4,611,233 -

LIABILITIES
Current Liabilities 100,087 - 100,087 47,870 - 47,870
Noncurrent Liabilities 2,641,790 - 2,641,790 1,902,324 - 1,902,324 Other Liabilities 25,797 - 25,797 16,321 16,321 - -
Total Liabilities: $ 2,767,674 $ - $ 2,767,674 $ 1,966,514 $ - $ 1,966,514 - -
NET POSITION (Assets - Liabilities) $ 6,543,783 $ 336,206 $ 6,879,989 $ 2,475,470 $ 169,249 $ 2,644,719 Net Position Breakdown
Net Investment in Capital Assets 2,523,855 336,206 2,860,061 1,464,317 169,249 1,633,566 Restricted for capital expansion 420,996 - 420,996 89,394 - 89,394 Unrestricted 3,598,932 - 3,598,932 921,760 - 921,760
Total Net Position $ 6,543,783 $ 336,206 $ 6,879,989 $ 2,475,470 $ 169,249 $ 2,644,719 Table 7

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Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 10

Figure 3 summarizes Enterprise Fund revenue, expenses, connection fees and CIP transfers per fund:

Water Fund
Revenue and Expenses
Water Funds Water
Water
Capital Total
Revenues
Charge for Services 1,966,392 - 1,966,392
Interest Income 4,609 - 4,609
Connection Fees - 15,190 15,190
Total Operating Revenue 1,971,001 15,190 1,986,191
Other Revenues 3,343 - 3,343
Total Revenues 1,974,344 15,190 1,989,534
Transfers In - CIP - - -
Expenses
Operating 822,583 - 822,583
Depreciation* 168,300 27,750 196,050
State Water 827,422 - 827,422
Total Operating Expenses 1,818,305 27,750 1,846,055
Operating Profit(Loss) 156,038 (12,560) 143,478
Transfers Out - CIP** 962,338 55,758 1,018,096
Net Profit (Loss) (806,300) (68,318) (874,618)
* Depreciation is estimated. Final depreciation posted at the end of fiscal year. **For informational purposes. Capital expenditures are capitalized, at the end of the FY, not expensed.

Table 8
Table 8 summarizes Revenue and Expenditures for the Water and Water Capital Funds. On the Financial Statements, both funds are combined as one fund. The Water Capital Fund is structured to record capital contributions and is used to record capital improvements that enhance capacity. Water Capital will be discussed in detail later in this report.

Water Fund operating revenues have exceeded expenditures by $156,038 at the end of the third quarter 2021- 22 (excludes Capital Improvement expenses). Per Generally Accepted Accounting Principles (GAAP), capital items are expensed in the depreciation category. The amount spent on capital projects are capitalized and -
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Water Fund Water Capital Wastewater
Fund
Wastewater
Capital
Operating Revenue
Operating Expense
Transfer to CIP
Figure 3

Unaudited Financial Data
Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 11

shown on the Balance Sheet at the end of the fiscal year. The Water Fund is currently operating with a surplus compared to operating in a deficit for over a decade. The Water Fund ended the third quarter with approximately $6.1 Million in cash (Table 7) and Fund Balance of approximately $6.5 Million. $420,996 of the cash balance is restricted to expenditures related to the ENGIE Energy Project.

Table 9 illustrates the Water Fund budget to actuals. Charges for Services are within budget projections at 74 percent. Interest income is below budget projections due to the interest earnings. Interest rates continue to be at its all-time low, and there will be some relief if the Federal Reserve decides to hike interest rates in the upcoming month.

The Water Fund utilizes reserves to fund Capital Improvement projects (CIPs). The budgeted transfer out for CIPs for FY 2021/22 is $2,049,386. The Water Fund has expensed 47 percent of the CIP budget at the end of the quarter. These expenses are for the ENGIE Energy Project. Overall, Water Fund expense categories were within budget and ended the third quarter at 60 percent expended.

Water Capital
Water Capital Fund records Connection Fees and CIP expenditures. The change in Fund Balance is due to planned expenditures for CIPs exceeding estimated Connection Fee revenue and offset by any existing Fund Balance.

The Fund Balance at the end of the third quarter is $336,206 (Table 7). In accordance with Generally Accepted Accounting Principles (GAAP), capital expenditures are not recorded as expenditures; rather, depreciation expense is recorded over each asset’s useful life. At year-end, the Water Fund will transfer funds to the Capital Fund to cover any deficit. Table 10 illustrates the Water Capital budget to actuals.

Water Capital 021 Current Budget YTD Actuals Percent
Revenues
Connection Fees - 15,190 0%
Interest Income - - 0%
Transfers from Reserves - - 0%
Transfer In from Fund 020 437,000 - 0%
Total Revenue 437,000 15,190 3%
Expenses
Depreciation* 37,000 27,750 75%
Transfer to CIP Projects 400,000 55,758 14%
Total Expenditures 437,000 83,508 19%
Table 10
*Depreciation is estimated.

Water Fund 020 Original Budget Current Budget YTD Actuals Percent Revenues
Charge for Services 2,648,500 2,648,500 1,966,392 74%
Interest Income 10,000 10,000 4,609 46%
Total Operating Revenue 2,658,500 2,658,500 1,971,001 74% Other Revenues - - 3,343 0%
Transfer from Reserves 2,014,057 2,014,057 - 0%
Total Revenues 4,672,557 4,672,557 1,974,344 42%
Expenses
Operating 1,098,871 1,098,871 822,583 75%
Depreciation* 224,400 224,400 168,300 75%
State Water 1,300,000 1,300,000 827,422 64%
Total Operating Expenses 2,623,271 2,623,271 1,818,305 69% Transfers Out for CIP** 2,049,286 2,049,286 962,338 47% Total Expenses 4,672,557 4,672,557 2,780,643 60%
Net Surplus (Deficit) - - (806,300)
*Depreciation is estimated. Capital Expenditures recorded here and depreciated annually. ** For information purposes only, capitalized at the end of the fiscal year.

Table 9

Unaudited Financial Data
Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 12

Wastewater
Wastewater and
Wastewater Capital Funds Wastewater
Wastewater
Capital Wastewater Total
Revenues
Charge for Services 939,400 - 939,400
Interest Income 2,329 - 2,329
Connection Fees - - -
Total Operating Revenue 941,728 - 941,728
Other Revenues 607 - 607
Total Revenues 942,335 - 942,335
Transfers In -CIP - - -
Expenses
Operating 725,593 (0) 725,593
Depreciation* 210,375 27,000 237,375
Total Operating Expenses 935,968 27,000 962,968
Operating Profit(Loss) 6,367 (27,000) (20,633)
Transfers Out - CIP** 986,297 48,264 1,034,561
Net Profit (Loss) (979,930) (75,264) (1,055,194)
*Depreciation is estimated. Capital Expenditures recorded here and depreciated annually. ** For information purposes only, capitalized at the end of the fiscal year.

Table 11
Revenue and Expenses
Table 11 summarizes Revenue and Expenditures for the Wastewater and Wastewater Capital Funds. On the Financial Statements, both funds are combined as one fund. The Wastewater Capital Fund is structured to record capital contributions and used to record capital improvements that enhance capacity. Wastewater Capital will be discussed in detail later in this report.

Wastewater Fund operating revenue slightly exceeded operating expenses causing the Wastewater fund to experience a net operating surplus of $6,367 in the third quarter of FY 2021/22 (excluding Capital Improvement Project expenses). The previous years’ rate increases are narrowly covering the current operating costs and will not be feasible in the future. The Wastewater Fund ended the third quarter with about $2.6 Million in cash (Table 7) and Fund Balance of approximately $2.4 Million. $89,394 of the cash balance is reserved for the ENGIE Energy Project.

Table 12 on the following page illustrates the Wastewater Fund budget to actuals. Charges for Services met budget projections at 77 percent received. Interest income is below budget projections due to the interest earnings. Interest rates continue to be at an all-time low, and there will be some relief if the Federal Reserve decides to hike interest rates in the upcoming month.

The Wastewater Fund utilizes reserves to fund Capital Improvement Projects (CIPs). The budgeted transfer out for CIPs for FY 2021/22 is $1,899,415. The Wastewater Fund has expensed 52 percent of the CIP Budget at the end of the quarter. These expenses are for the ENGIE Energy Project. Overall, the Wastewater Fund expenses are within budget at 58 percent.

Unaudited Financial Data
Quarterly Financial Report – Third Quarter Ending March 31, 2022 Page 13

Sewer Fund 005 Original Budget Current Budget YTD Actuals Percent Revenues
Charge for Services 1,222,428 1,222,428 939,400 77%
Interest Income 6,400 6,400 2,329 36%
Total Operating Revenue 1,228,828 1,228,828 941,728 77% Other Revenues - - 607 0%
Transfer from Reserves 2,059,872 2,059,872 - 0%
Total Revenues 3,288,700 3,288,700 942,335 29%
Expenses
Operating 1,108,785 1,108,785 725,593 65%
Depreciation* 280,500 280,500 210,375 75%
Total Operating Expenses 1,389,285 1,389,285 935,968 67% Transfers for CIP** 1,899,415 1,899,415 986,297 52%
Total Expenses 3,288,700 3,288,700 1,922,266 58%
Net Surplus (Deficit) - - (979,930)
*Depreciation is estimated. Capital Expenditures recorded here and depreciated annually. ** For information purposes only, capitalized at the end of the fiscal year.

Table 12
Wastewater Capital
Wastewater Capital Fund records Connection Fees and CIP expenditures. The change in Fund Balance is due to planned expenditures for CIPs exceeding estimated Connection Fee revenue and offset by any existing Fund Balance. The Fund Balance at the end of the third quarter is $169,249 (Table 7). In accordance with Generally Accepted Accounting Principles (GAAP), capital expenditures are not recorded as expenditures; rather, depreciation expense is recorded over each asset’s useful life. At year-end, the Wastewater Fund will transfer funds to the Capital Fund to cover any deficit. Table 13 below illustrates the Wastewater Capital budget to actuals.

Wastewater Capital 006 Current Budget YTD Actuals Percent Revenues
Connection Fees - - 0%
Interest Income - - 0%
Transfers from Reserves - - 0%
Transfer In from Fund 005 886,000 - 0%
Total Revenue 886,000 - 0%
Expenses
Depreciation 36,000 27,000 75%
Transfer to CIP Projects 850,000 48,264 6%
Total Expenses 886,000 75,264 8%
Table 13

Budget Report
Account Summary
City of Buellton, CA For Fiscal: 2021-22 Period Ending: 3/31/2022 Percent
Used
244,518.22 48.44%
1,527,472.82 34.07%
559,857.43 28.61%
828,853.85 55.52%
994,189.55 50.59%
10,000.00 0.00%
4,164,891.87 44.18%
Department: 102 - Storm Drain Outfall Repairs and Re-Establishment 40,000.00 0.00%
40,000.00 0.00%
Department: 205 - City Hall Repairs
50,000.00 0.00%
50,000.00 0.00%
Department: 207 - Santa Ynez River Trail
50,000.00 0.00%
50,000.00 0.00%
Department: 214 - City Hall Generator/Electrical Replacement 40,000.00 0.00%
40,000.00 0.00%
Department: 215 - Avenue of Flags Specific Plan-Phase 1 -56,689.35 #DIV/0!
-56,689.35 #DIV/0!
Fund: 092 - Capital Improvement Project Fund
Revenue
092-49726 Transfer from Gas Tax Fund 474,195.00 474,195.00 229,676.78 092-49727 Transfer from General Fund 2,316,696.00 2,316,696.00 789,223.18 092-49728 Transfer from Measure A 784,245.00 784,245.00 224,387.57 092-49729 Transfer from Sewer Fund 1,863,415.00 1,863,415.00 1,034,561.15 092-49732 Transfer from Water Fund 2,012,286.00 2,012,286.00 1,018,096.45 092-49733 Trsfr from Local Trans Fund 10,000.00 10,000.00 0.00 Revenue Total: 7,460,837.00 7,460,837.00 3,295,945.13
Expense
092-102-74100 Construction and Improvements 40,000.00 40,000.00 0.00 Department: 102 - Storm Drain Outfall Repairs and Re-Establishment Total: 40,000.00 40,000.00 0.00 092-205-74100 Construction/Improvements 50,000.00 50,000.00 0.00 Department: 205 - City Hall Repairs Total: 50,000.00 50,000.00 0.00 092-207-70000 Conceptual Plan and Feasibility 50,000.00 50,000.00 0.00 Department: 207 - Santa Ynez River Trail Total: 50,000.00 50,000.00 0.00 092-214-74100 Construction and Improvement 40,000.00 40,000.00 0.00 Department: 214 - City Hall Generator/Electrical Replacement Total: 40,000.00 40,000.00 0.00 092-215-74100 Construction and Improvements 0.00 0.00 56,689.35 Department: 215 - Avenue of Flags Specific Plan-Phase 1 Total: 0.00 0.00 56,689.35 Fiscal
Activity
Current
Total Budget
Original
Total Budget
Variance
Favorable
(Unfavorable)
Status: Not started.

Status: Not started.

Status: Not started.

Status: Not started.

Status: Project Complete.

Percent
Used
Department: 217 - River View Park Basketball Court Resurfacing 80,000.00 0.00%
80,000.00 0.00%
Department: 219 - Engie Project
608,049.82 42.54%
608,049.82 42.54%
Department: 307 - McMurray Road Widening/TS (13/14)
13,115.00 22.85%
319,130.45 31.37%
50,000.00 0.00%
200,000.00 0.00%
582,245.45 20.46%
Department: 308 - No. Ave of the Flags Park and Ride
50,000.00 0.00%
50,000.00 0.00%
Department: 319 - Road Maintenance Project FY 2020/21
48,850.00 34.87%
139,392.55 80.09%
188,242.55 75.71%
Department: 320 - Road Maintenance (2021/22)
75,000.00 0.00%
85,000.00 0.00%
500,000.00 0.00%
660,000.00 0.00%
092-217-74100 Construction and Improvement 80,000.00 80,000.00 0.00 Budget Report For Fiscal: 2021-22 Period Ending: 3/31/2022 Department: 217 - River View Park Basketball Court Resurfacing Total: 80,000.00 80,000.00 0.00 092-219-74100 Engie Improvements 1,058,136.00 1,058,136.00 450,086.18 Department: 219 - Engie Project Total: 1,058,136.00 1,058,136.00 450,086.18 092-307-70005 Design and Permitting 17,000.00 17,000.00 3,885.00

0.00 Department: 307 - McMurray Road Widening/TS (13/14) Total: 732,000.00 732,000.00 149,754.55 092-307-71200 Right of Way Acquistion 465,000.00 465,000.00 145,869.55 092-307-71500 Project Management and Inspections 50,000.00 50,000.00 0.00 Construction and Improvements 200,000.00 200,000.00
Department: 319 - Road Maintenance Project FY 2020/21 Total: 775,000.00 775,000.00 586,757.45 092-320-70005 Design and Permitting 75,000.00 75,000.00 0.00 092-319-71500 Project Management and Inspections 75,000.00 75,000.00 26,150.00 092-319-74100 Construction and Improvements 700,000.00 700,000.00 560,607.45 092-308-70005 Design and Permitting 50,000.00
Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity
092-320-74100 Construction/Improvements 500,000.00 500,000.00 0.00 092-320-71500 Project Management and Inspection 85,000.00 85,000.00 0.00 50,000.00 0.00
Department: 308 - No. Ave of the Flags Park and Ride Total: 50,000.00 50,000.00 0.00 092-307-74100
Department: 320 - Road Maintenance (2021/22) Total: 660,000.00 660,000.00 0.00 Status: Not started.

Status: Project is on-going.

Status: Project is pending Right0f-Way aquisition. Design in progress.

Status: On-going.

Status: Project Complete.

Status: Pending.

Percent
Used
Department: 401 - Misc. River View Park Improvements
50,000.00 0.00%
50,000.00 0.00%
Department: 603 - WTP Facilities Improvement (13/14)
150,000.00 0.00%
150,000.00 0.00%
Department: 605 - WTP Backwash Reclamation Improvement Project 35,000.00 0.00%
65,000.00 0.00%
100,000.00 0.00%
Department: 609 - Supplemental Well/WTP Feasibility
50,000.00 0.00%
50,000.00 0.00%
Department: 610 - Water Distribution System Improvements 44,241.57 55.76%
44,241.57 55.76%
Department: 612 - Engie Project
649,947.98 59.69%
649,947.98 59.69%
092-401-74100 Construction and Improvements 50,000.00 50,000.00 0.00 Department: 401 - Misc River View Park Imp. Total: 50,000.00 50,000.00 0.00 092-603-74100 Construction and Improvements 150,000.00 150,000.00 0.00 Department: 603 - WTP Facilities Improvement (13/14) Total: 150,000.00 150,000.00 0.00 092-605-71500 Project Management and Inspections 35,000.00 35,000.00 0.00 092-605-74100 Construction and Improvements 65,000.00 65,000.00 0.00 Department: 605 - WTP Backwash Reclamation Improvement Project Total: 100,000.00 100,000.00 0.00 092-609-70000 Conceptual Plan and Feasibility 50,000.00 50,000.00 0.00 Department: 609 - Supplemental Well/WTP Feasibility Total: 50,000.00 50,000.00 0.00 092-610-74100 Construction and Improvements 100,000.00 100,000.00 55,758.43 Department: 610 - Water Distribution System Improvements Total: 100,000.00 100,000.00 55,758.43 092-612-74100 Engie Improvements 1,612,286.00 1,612,286.00 962,338.02 Department: 612 - Engie Project Total: 1,612,286.00 1,612,286.00 962,338.02 Budget Report For Fiscal: 2021-22 Period Ending: 3/31/2022 Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
Fiscal
Activity
Status: Not yet started.

Status: Not yet started.

Status: Not yet started.

Status: Not-yet started.

Status: On-going.

Status: On-going.

Percent
Used
Department: 704 - Sewer Line Replacement
50,000.00 0.00%
200,000.00 0.00%
250,000.00 0.00%
Department: 706 - WWTP Facilities Improvement
251,736.12 16.09%
251,736.12 16.09%
Department: 710 - WWTP Lift Station and Plant Power Reliability 20,000.00 0.00%
280,000.00 0.00%
300,000.00 0.00%
Department: 711 - Improvement
27,117.73 97.32%
27,117.73 97.32%
4,164,891.87 44.18%
Fund Balance Analysis - Capital Improvement Project (CIP) Funding Sources (2021-2022) 092-704-71500 Project Management and Inspections 50,000.00 50,000.00 0.00 092-704-74100 Construction and Improvements 200,000.00 200,000.00 0.00 Department: 704 - Sewer Line Replacement Total: 250,000.00 250,000.00 0.00 092-706-74100 Construction and Improvements 300,000.00 300,000.00 48,263.88 Fund 092 - Capital Improvement Project Fund Total: 7,460,837.00 7,460,837.00 3,295,945.13 092-711-74100 Engie Improvements 1,013,415.00 1,013,415.00 986,297.27 Department: 711 - Improvement Total: 1,013,415.00 1,013,415.00 986,297.27 Fiscal
Activity
092-710-74100 Construction/Improvements 280,000.00 280,000.00 0.00 Department: 710 - WWTP Lift Station and Plant Power Reliability Total:

Budget Report For Fiscal: 2021-22 Period Ending: 3/31/2022 Variance
Favorable
(Unfavorable)
Original
Total Budget
Current
Total Budget
300,000.00 300,000.00 0.00
Department: 706 - WWTP Facilities Improvement Total: 300,000.00 300,000.00 48,263.88 092-710-71500 Project Management and Inspections 20,000.00 20,000.00 0.00 Status: Not yet started.

Status: On-going.

Status: On-going.

Status: On-going.
6/30/2021 FY 21-22 YTD FY 21-22 YTD FY 21-22 YTD Est. 3/31/22 Change in Fund Equity Revenue Expenditures CIP Funding Fund Equity Fund Balance 001 - General Fund $ 9,668,278.96 $ 6,921,078.00 $ 5,809,945.82 $ 789,223.18 $ 9,990,187.96 $ 321,909.00 005 - Wastewater $ 3,245,025.89 942,335.00 725,594.00 986,297.00 $ 2,475,469.89 $ (769,556.00) 006 - Wastewater Capital $ 217,512.80 - - 48,264.15 $ 169,248.65 $ (48,264.15) 020 - Water $ 7,181,783.92 1,974,344.00 1,650,004.84 962,338.35 $ 6,543,784.73 $ (637,999.19) 021 - Water Capital $ 376,774.06 15,190.00 - 55,758.10 $ 336,205.96 $ (40,568.10) 025 - Gas Tax $ 462,570.17 237,947.26 83,698.50 229,676.78 $ 387,142.15 $ (75,428.02) 027 - Local Transportation Fund $ 241,229.42 4,150.60 17,961.04 - $ 227,418.98 $ (13,810.44) 031 - Measure A $ 715,758.72 274,238.99 - 224,387.57 $ 765,610.14 $ 49,851.42 Totals: 22,108,933.94 $ $ 10,369,283.85 $ 8,287,204.20 $ 3,295,945.13 $ 20,895,068.46 $ (1,213,865.48) Fund

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 5

To: The Honorable Mayor and City Council
From: Gregory Murphy, City Attorney
Meeting Date: May 12, 2022
Subject: Resolution No. 22-15 – “A Resolution of the City Council of the City of Buellton, California, Proclaiming the Continuing Need to Meet by Teleconference”
______________________________________________________________________________

BACKGROUND
On September 16, 2021, Governor Newsom signed Assembly Bill 361 (AB 361), which modified the Brown Act to allow a legislative body to continue to meet under teleconferencing rules during a proclaimed state of emergency and where local officials recommend measures to promote social distancing.

On September 28, 2021, the Santa Barbara County Public Health Department recommended that social distancing continue during public meetings via use of teleconferencing in order to help prevent the spread of COVID-19. This message was set forth in the Santa Barbara County Public Health Department’s press release entitled, “Health Officials AB 361 Social Distance Recommendation”, which is attached to Resolution No. 22-15 as (Exhibit A).

Public Health Officials have recommended measures to promote social distancing, including holding virtual meetings for legislative bodies within the County of Santa Barbara. Therefore, in consideration of the State of Emergency declared by Governor Newsom and findings that the State of Emergency still warrants the option of teleconferencing for public meetings, it is in the interest of public health and safety, and in response to the local recommendation for measures to promote social distancing, it is necessary to invoke provisions of AB 361 related to teleconferencing.

A Special City Council Meeting was held on January 13, 2022, allowing teleconferenced meetings to continue, Resolution No. 22-02 was adopted on February 10, 2022, Resolution No. 22-06 was adopted on March 10, 2022, Resolution No. 22-11 was adopted on April 14, 2022, documenting the continued need for meetings to occur via teleconference if necessary, to allow for social distancing to continue for both Council and Commission meetings, especially given the compact area that houses the Council Chambers. Resolution

Resolution No. 22-15 Page 2 May 12, 2022
No. 22-15 would allow teleconferenced meetings to continue for another 30 days, if needed.

RECOMMENDATION
That the City Council consider adoption of Resolution No. 22-15 - “A Resolution of the City Council of the City of Buellton, California, Proclaiming the Continuing Need to Meet by Teleconference”

ATTACHMENTS
Resolution No. 22-15 (Exhibit A)

RESOLUTION NO. 22-15

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF BUELLTON, CALIFORNIA, PROCLAIMING THE

CONTINUING NEED TO MEET BY TELECONFERENCE
WHEREAS, the City of Buellton is committed to preserving and nurturing public access and participation in meetings of the City Council; and
WHEREAS, all meetings of the City of Buellton’s legislative bodies are open and public, as required by the Ralph M. Brown Act (Cal. Gov. Code 54950 – 54963), so that any member of the public may attend, participate, and watch the City’s legislative bodies conduct their business; and
WHEREAS, the Brown Act, Government Code section 54953(e), makes provisions for remote teleconferencing participation in meetings by members of a legislative body, without compliance with the requirements of Government Code section 54953(b)(3), subject to the existence of certain conditions; and
WHEREAS, a required condition is that a state of emergency is proclaimed and state or local officials have imposed or recommended measures to promote social distancing; and WHEREAS, on March 4, 2020, Governor Newsom declared a State of Emergency as a result of the COVID-19 pandemic; and
WHEREAS, on September 28, 2021 the Santa Barbara County Public Health Department put into effect measures requiring social distancing and other public health measures and restrictions to help combat the COVID-19 pandemic as referenced in Exhibit A; and WHEREAS, the State of Emergency and social distancing and other public health measures remain in effect; and
WHEREAS, COVID-19 continues to threaten the health and lives of Buellton City residents notwithstanding the City’s vaccination rates and the Omicron variant is highly transmissible in indoor settings; and
WHEREAS, the City of Buellton has a relatively compact City Council chambers that does not allow for social distancing and a return to solely in-person meetings may discourage public participation and expose those present to a risk of COVID-19 transmission.

NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Buellton that:

Section 1. State of Emergency and Social Distancing. Due to COVID-19, the State of California continues to be in a state of emergency and the County of Santa Barbara continues to impose and recommend measures requiring social distancing and other, which measures make holding solely in-person City Council and other legislative body meetings difficult due to the compactness of the City Council chambers, the inability to have sufficient public presence at the meetings due to social distancing, and the potential of transmission of COVID-19 at meetings.

Resolution No. 22-15 Page 2 May 12, 2022
Section 2. Compliance with Government Code Section 54953. The City Council and other legislative bodies will continue to offer teleconference meetings and provide access to the public in accordance with Government Code section 54953(e).

Section 3. Effective Date of Resolution. This Resolution shall take effect immediately upon its adoption and shall be effective until the earlier of (i) 30 days from the date of adoption of this Resolution, or (ii) such time the City Council adopts a subsequent resolution in accordance with Government Code section 54953(e)(3) to extend the time during which the legislative bodies of Buellton may continue to teleconference without compliance with paragraph (3) of subdivision (b) of section 54953.

PASSED, APPROVED and ADOPTED this 12
th day of May, 2022.

__________________________________
Holly Sierra
Mayor
ATTEST:
__________________________________
Linda Reid
City Clerk

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 6
To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: May 12, 2022
Subject: Approval of Technology Purchase Agreement with GSolutionz to provide Voice-over-Internet Phone (VoIP) Service through Elevate ______________________________________________________________________________

BACKGROUND
On August 2017, the City of Buellton entered into a 60 month lease agreement with CIT BANK, N.A, for the current AVAYA IP500 phone system. The monthly lease payment is $384.38. The AVAYA phone system lease will expire on August 18, 2022. The City has the option to purchase the leased equipment at the end of the term, or renew the lease in three-month terms until the equipment is returned. The City must provide at least a 90-day notice if it will no longer renew the lease. The deadline for the written notice is May 18, 2022.

City staff has been exploring options to upgrade our current phone system to enhance communication between employees and the citizens of Buellton. The rapid transition to remote working at the start of the pandemic highlighted the need for a more modernized phone system that allows efficiency through portability. The largest advantage of a portable phone system is connecting employees anywhere, whether in the office, working remotely or in the field. Our current phone system lacks this capability. Although employees can forward calls from the desk phones to their cell phones to receive calls, the incoming call lacks an accurate Caller ID function. The current system is also not enabled to dial out remotely, nor can forwarded calls be transferred to or conferenced with other users. Since the current phone lease is about to expire, it is the appropriate time to move to a modernized system that allows the City to collaborate from anywhere and meets the City’s need for a more productive, efficient, and accessible phone system.

GSolutionz Inc. is the supplier of the current phone system and has suggested various phone system solutions to replace the City’s existing telephone system. Attachment 1 is the list of suggested solutions and their cost. Included on this list is a potential solution offered by Frontier. This solution appears to cost less on an annual basis, but lacks several

Upgraded Phone System Page 2 May 12, 2022
key features such as file sharing, e-fax and web meeting ability, which would drive the costs upward to exceed those of the Elevate system, if included.

Upon evaluation of all the options, it was determined that Elevate represented the best solution and value for the City. Gsolutionz is the reseller of Elevate and will provide the equipment, installation and implementation of the Elevate VoIP system for an estimated one-time cost of $4,483.14. The implementation costs will be offset by savings from the termination of the phone lease and switching phone service providers from Frontier to Elevate. The average monthly Frontier phone bill is $2,060. Ongoing Elevate monthly service charges will be $1,011.73. Implementation will be scheduled on or after July 1, 2022.

The table below shows a price comparison between the current phone environment and the new environment with Elevate.

The new system will utilize Internet protocol technology with features that will benefit the City, including:
 Improved call logging and tracking to improve customer service queue movement  Management reporting on call hold times and wait queues across multiple departments to reduce wait time
 A phone system that is more reliable and flexible to support 24/7 operations even in the event of a power outage
 Full-featured phone system combined with chat, web/video conferencing, and file collaboration and backup capabilities
 Access to Elevate Mobile App and Desktop App
 Ability to E-fax
 Integrated voicemail with Microsoft Outlook
 Lower cost due to the reduction in phone system hardware and operating costs

FISCAL IMPACT
The fiscal impact of the Technology purchase agreement is $12,140.76 annually. The current FY 2022/23 budget for telephone services will result in budget savings in the amount of $17,187.

Current City of Buellton Environment
Monthly Charges
 Phone Service (Frontier): $ 2,059.60
 Phone Lease (Avaya) : $ 384.38
Total Monthly Charges: $ 2,443.98
Annual Charges: $ 29,327.76
Upgrade to Elevate Environment
Monthly Charges:
 Elevate: $ 1,011.73
Annual Charges: $ 12,140.76
Upgrading to Elevate saves the City $17,187
annually.

Upgraded Phone System Page 3 May 12, 2022

RECOMMENDATION
That the City Council authorize the City Manager to execute the Technology Purchase agreement with Gsolutionz to purchase a voice-over-internet phone system through Elevate in the estimated annual cost of $12,140.76.

ATTACHMENTS
Attachment 1 – Quote Comparison

Solution: Avaya IP Solution* Elevate DialPad
Unified
Communications by
Frontier
Term: 3-years 3-year 3-year 1-year
Monthly Charges: $1,135.52* $1,011.73 $1,090.96 $867.95 One-Time Charges
(Equipment, Installation): $5,254.45 $4,483.14 $7,767.98 $0 Annual Reoccurring Cost: $13,626.24 $12,140.76 $13,091.52 $10,415.40 * Note: Keeps existing phones
Phone Profiles 27 27 27 30
Fax Adapters 3 3 3 0
Hard Phones 0 26 16 27
Headsets 11 11 11 11
File Sharing x x x NA
Video Conferencing x x x
additional fees apply per
user
Instant Messaging x x x x
Mobile/Desktop App x x x x
E-fax x x x NA
Phone System Comparison - 2022
Technical Specifications Proposed:

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 7
To: The Honorable Mayor and City Council
From: Scott Wolfe, City Manager
Meeting Date: May 12, 2022
Subject: Presentation by Central Coast Community Energy ______________________________________________________________________________

BACKGROUND
In January of 2022, Buellton residents and businesses transitioned from having their electric power provided by Pacific Gas and Electric (PG&E) to having it provided by Central Coast Community Energy (3CE).

As a 3CE member agency, the City receives an annual update so that the City Council and the public can be made aware of the status of 3CE, as well as its current initiatives, special programs, and progress in developing new energy sources. To deliver this annual update, 3CE will make a brief presentation to the City Council at tonight’s meeting.

This item in informational in nature only, and no action is required of the City Council at this time.

FISCAL IMPACT
No fiscal impact is associated with any direction requested in this report.

RECOMMENDATION
Staff recommends that the City Council receive the presentation by 3CE.

ATTACHMENTS

Attachment 1 - Annual Update Slide Presentation

Annual Member Agency
Update
City of Buellton
May 12, 2022

How Does CCA Work?
“A Partnership to support shared customers”

WHO WE ARE?

CCCE GOVERNANCE
Policy Board: Meets 4 Times Annually including Annual Meeting Operations Board: Meets 10 Times Annually including Annual Meeting Community Advisory Council: Meets 7 Times Annually including Annual Meeting County of
Santa Cruz
City of Santa
Cruz
City of
Watsonville
County of
Monterey
City of
Salinas
County of
San Benito
County of
Santa
Barbara
City of Santa
Maria
Coastal
Cities
Marina
Sand City*
Seaside
Del Rey
Oaks
Peninsula
Cities
Carmel
Monterey
Pacific*
Grove
Salinas
Cities
Greenfield
Gonzales
Soledad*
San Benito
Cities
Hollister*
San Juan
Bautista
Santa Cruz
Cities
Capitola*
Scotts
Valley
San Luis
Obispo
Cities
San Luis
Obispo*
Morro Bay
Paso Robles
South
County
Cities
Arroyo
Grande
Grover
Beach
Pismo*
Beach
SB County
Cities
Guadalupe
Solvang*
Buellton
SB County
Cities
Goleta
Carpinteria*
*City representative currently serving in a shared seat.

CCCE

ACCOMPLISHMENTS
Local
Choice
Economic
Vitality
Local
Support
Financial
Stability
Clean
Energy
• 3Cchoice – clean &
renewable offering
• 3Cprime – 100%
renewable offering
• 95% enrollment
• Contracts with Local
Vendors Over
$1,000,000
• 40 full time
employees
• 2 offices – Monterey
& San Luis Obispo
• Received an A rating
with S&P
• Over $150 Million in
Rate Stabilization
Fund
• Service and Loans
Paid Off
• 453.3 MWs of
Renewables – solar,
wind, geothermal
• 200 MWs of battery
storage
• Pathway to 100%
clean & renewable
• $14.1 million –
Energy programs
• $50+ million –
Customer benefits
• $25 million –
Resiliency Fund

Photo Credit: 2020 Rutgers, The State University of New Jersey

FAST TRACKING NEW ENERGY DEVELOPMENT
Cost of Service (COS) Rate Design
These projects will serve about 61% of CCCE’s retail load when all are online, expected in 2025.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2021 2022 2023 2024 2025 2026 2027 2028 2029 2030
CCCE Long-term (LT) Contracting Status as a % of Retail Load 3CE Executed PPA % State RPS Requirement %
State RPS LT Contracting Requirement % 3CE's Procurement Policy % CCCE's Executed Contract Summary
Project Type Count Gen Capacity (MW) Storage Capacity
(MW)
Solar + Storage PPAs 9 633 201
Solar Only PPAs 1 150
Wind PPAs 1 33
Geothermal PPAs 2 73
RA Only Agreement 1 60
14 889 261

CCCE COMMITMENT TO RENEWABLE

PROCUREMENT
• Contracted for approximately $1 billion in long term solar plus storage contracts since 2018
• Shortlisted 7 local projects through its local renewables RFP • Joined other CCAs to advance long duration storage RFP to support grid reliability through existing and new technologies • Issued an RFQ for up to 100MW of front of the meter battery storage, with the potential to island projects for increased resiliency

CCCE HISTORIC RATES & COVID-19

RESPONSE
2018
3% rebate
2019
5% rebate
Jan – April
2020
7% monthly
discount
May &
June 2020
50% Bill
Reduction
July 2020 –
Feb 2022
2%
discount

Long-term rate adoption increases predictability and rate stability Customer choices and transparency improve with simplified customer classes
New rates increase customer rate equity throughout customer segments
New rate structure maintains competitive rates across all customer segments
https://3cenergy.org/2022-energy-choices/
GOALS OF 2022 CCCE SERVICE OFFERINGS

City of Buellton
(99.08% Enrollment)
• Total 2,268 Enrolled Customers
• 1,694 Residential
• 561 Commercial
• 7 Agricultural

ENERGY PROGRAM FUNDS
• Electrify Your Ride $2,000

Overview:
• $1.3 million in FY 18/19
• $5.4 million in FY 19/20
• $6.2 million in FY 20/21
• Estimated $14.1 million in FY
21/22
• 4% of operating revenue in FY
21/22
Electrification in building and
transportation sectors could
result in $3 billion of
untapped revenue market
wide
CCCE Energy Programs
13 FY 21/22 Energy Programs
Electrify Your Ride - $2.8 million – NOVEMBER 2021
School Bus Electrification - $1 million - OCTOBER 2021
Agriculture Electrification - $600k - OCTOBER 2021
Residential Electrification - $1.6 million
New Construction Electrification - $1.5 million – OCYOBER 2021 Reach Code - $60k
Battery Energy Storage Pilot - $350k
Summer Readiness - $400k
Energy Education, Workforce Development and Innovation Grants - $1 million
Greenhouse Gas Inventory - $64k

September 30, 2021
COMING MID-NOVEMBER 2021
New and expanded Electrify Your Ride program will incentivize EV's, EV Chargers AND Electric Bikes with our largest energy program budget to date!

Locally Sited Front of the Meter
Distributed Energy Storage Projects
Benefits
• Rate Stability reduced energy cost & reduced RA cost
• Grid Stability local power supply, critical period imports reduced => fewer outages
• Grid services balance power flows
• Reduced GHGs evening dispatch of day-time “solar” electrons • Local jobs building and maintaining facilities
• Potential “microgrid” islanding => resiliency

Medium and Heavy-Duty Vehicle Electrification
Program
• Intended to support the electrification of Member Agency medium and heavy-duty fleet vehicles
• Potential applications include street sweepers, refuse trucks, dump trucks, and first response vehicles
• CCCE will reserve funds for qualifying projects and funds will be dispersed once purchases and/or projects are completed
• Intended to work in coordination with city/county purchasing schedules and policies
• Incentives likely to be tied to increased cost of electric models from standard internal combustion options

LOCAL OUTREACH & ENGAGEMENT
Farm Worker Outreach
•10 Farm Worker Outreach events in 2021
•Sponsoring La Tri-Color & La Ley radio stations events •Educate on CCCE services & programs in person
Underserved Community Outreach
•Presentations to stakeholders & organizations
•Latino Elder Outreach Network
•Promotores
•Lideres Campensinas
•Mexican Consulate
•Public Engagement Team & Community Advisory Council
created a committee to improve outreach to;
•Low-income, food insecure, renters, senior citizens w/ fixed income, tribal & migrant indigenous communities

Vendor Registry

Stay Connected with CCCE
Follow us online, join our newsletter and board agenda notification list, and check our extensive FAQ section on the website.
www.3Cenergy.org
[email protected]

1.888.909.6227
@3CEnergy
@3CEnergy
@3CEnergyEnEspanol

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 8
To: The Honorable Mayor and City Council
From: Scott Wolfe, City Manager
Meeting Date: May 12, 2022
Subject: Discussion Regarding Request to Use City-Owned Property at SE Corner of Second Street and Central Avenue for Community Garden ______________________________________________________________________________

BACKGROUND
City staff has received a request from a local resident to utilize the City-owned property at the southeast corner of Second Street and Central Avenue for the creation of a community garden. In keeping with a model utilized for the PAWS Park and the Santa Ynez Valley Botanical Garden, a not-for-profit organization is making this request for use of the property and for City-provided water.

While the use of the property would not result in a direct cost to the City, the provision of water would. At this time, staff is unable to determine just what the cost of such water service would be, and would need City Council direction to study the matter further. With these resources, however, a community garden could be created at the site, allowing residents without their own space to grow fruit and vegetables to have the resources necessary to do so. An additional benefit would also be the beautification of the site, as it now exists in a vacant condition.

Ms. Annie Yakutis will make a presentation with the request of the City Council at tonight’s meeting. She will be available to answer any questions.

Should the City Council direct staff to proceed with analysis of the request, staff would return to the City Council with an evaluation of anticipated costs, as well as a draft agreement for use of the property for the City Council’s consideration.

FISCAL IMPACT
No fiscal impact is associated with any direction requested in this report.

RECOMMENDATION
Staff recommends that the City Council receive the presentation by Ms. Yakutis, consider the request, and direct staff as appropriate.

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 9
To: The Honorable Mayor and City Council
From: Shannel Zamora, Finance Director
Meeting Date: May 12, 2022
Subject: Resolution No. 22-16 - A Resolution of the City Council of the City of Buellton, California, for the Purpose of Budget Amendments from Operational Changes related to Fiscal Year 2021-22 Budget through the Third Quarter Ending March 31, 2022 ______________________________________________________________________________

BACKGROUND
As part of the City’s budget process, staff periodically presents to the City Council for consideration various operational and personnel adjustments in conjunction with the quarterly financial report. Amendments during the fiscal year are accomplished at quarterly intervals while staff outlines current economic conditions.

Staff is presenting the following additional operational recommendations for incorporation into the 2021-22 budget. Some of the proposed adjustments have been previously authorized by City Council.

General Government – Changes to appropriations ($222,330)  Non-Departmental – 001-410-60800 Contract Services-: $4,000 appropriation increase for GASB 87 implementation services.
 Non-Departmental – 001-410-77000 Transfer Out for Capital Outlay-: $170,000 appropriation increase for design and architectural services for the Willemsen House ($100,000) and design of the Willemsen Parking lot ($70,000).  Recreation – 001-511-50400 Medical Benefit-: $11,330 appropriation increase for correction in the calculation of medical benefits on the original budget. It excluded one employee.
 Recreation – 001-511-60270 Vehicle Maintenance -: $5,000 appropriation increase for the repair of the Recreation buses.
 Recreation – 001-511-60900 Miscellaneous -: $2,000 appropriation increase  Recreation – 001-511-67140 Buellton Recreation Program -: $15,000 appropriation increase for Recreation program expenditures. More sessions are

Resolution No. 22-16 Page 2 May 12, 2022
being offered creating more payments to instructors. The instructor payments are offset with revenue received from a portion of those sessions.  Planning – 001-565-60800 Contract Services -: $15,000 appropriation increase for the hiring of temporary Planning Department staffing. Increase will be partly offset with salary and benefit savings.

Wastewater Fund – Changes to appropriations ($5,675), Changes to revenue projection ($5,675)
 005-701-60210 Computer Maintenance and Software-: $2,675 increase in appropriations to reflect the increased cost of software licensing, internet and the purchase of printers and cables.
 005-701-67575 Regulatory Compliance-: $3,000 increase in appropriations to reflect the increase in regulatory permit costs.
 005-49652 Transfer from Reserves –: $5,675 increase in projected transfer from reserves to cover the increases mentioned above.

Water Fund – Changes to appropriations ($136,400), Changes to revenue projection ($136,400)
 020-601-60250 Maintenance and Repairs-: $135,000 increase in appropriations for unexpected repairs due to erosion at Well 8, valve and pump repairs at the McMurray booster station, tree removals at McMurray Water Treatment Plant and multiple breaks throughout the City.
 020-601-60270 Maintenance-Vehicles-: $1,400 increase in appropriations for additional repairs on vehicles and increase in fuel costs.  020-49661 Transfer from Reserves –: $136,400 increase in projected transfer from reserves to cover the increases mentioned above.

Capital Improvement Project Budget – Changes to appropriations ($170,000), Changes to revenue projection ($170,000)
 092-220-70005-: $70,000 increase in appropriation for architectural services and design for the renovation of the Willemsen House.
 092-221-70005-: $100,000 increase in appropriations for the design of the Willemsen Parking lot.
 092-49727–: $170,000 increase in projected transfer from the General Fund to cover the increases mentioned above.

Resolution No. 22-16 Page 3 May 12, 2022

FISCAL IMPACT
The proposed amendments to the General Fund increases appropriation in the amount of $222,330. There is an existing operating surplus that will be used to offset the increase in General Fund expenditures.

The proposed amendments to the Wastewater Fund increases appropriations by $5,675 offset with a transfer from reserves of $5,675, and results in a net change of $0.

The proposed amendments to the Water Fund increases appropriations by $136,400 offset with a transfer from reserves of $136,400, and results in a net change of $0.

The proposed Capital Improvement Budget increases appropriation by $170,000. The appropriation is offset by a $170,000 transfer-in from the General Fund, and results in a net change of $0.

RECOMMENDATION
That the City Council consider adoption of Resolution No. 22-16 - “A Resolution of the City Council of the City of Buellton, California, for the Purpose of Budget Amendments from Operational Changes related to Fiscal Year 2021-22 Budget through the Third Quarter Ending March 31, 2022”

ATTACHMENTS
Resolution No. 22-16 (Exhibit A)

RESOLUTION NO. 22-16

A RESOLUTION OF THE CITY COUNCIL OF THE CITY

OF BUELLTON, CALIFORNIA, FOR THE PURPOSE OF

BUDGET AMENDMENTS FROM OPERATIONAL
CHANGES RELATED TO FISCAL YEAR 2021-22 BUDGET
THROUGH THE THIRD QUARTER ENDING MARCH 31,
2022

WHEREAS, the City Council adopted the Biennial Fiscal Year 2021-22 and 2022-23 Budget on June 10,2021; and
WHEREAS, it was necessary to make further amendments to Biennial Fiscal Year 2021- 22 as part of the First Quarter Financial Report on December 10, 2021; and WHEREAS, it was necessary to make further amendments to Fiscal Year 2021-22 Budget as part of the Mid-Year Review on February 24, 2022; and WHEREAS, it is necessary to make further amendments to Biennial Fiscal Year 2021-22 as part of the Third Quarter Financial Report.

NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Buellton as follows:

That proposed budget amendments on the attached Exhibit A for the Fiscal Year 2021-22 are approved.

The proposed operational changes are intended to maximize operational efficiencies and enhance service delivery. The proposed amendments to the General Fund increases appropriation in the amount of $222,330. There is an existing operating surplus that will be used to offset the increase in General Fund expenditures.

The proposed amendments to the Wastewater Fund increases appropriations by $5,675 offset with a transfer from reserves of $5,675, and results in a net change of $0.

The proposed amendments to the Water Fund increases appropriations by $136,400 offset with a transfer from reserves of $136,400, and results in a net change of $0.

The proposed Capital Improvement Budget increases appropriation by $170,000. The appropriation is offset by a $170,000 transfer-in from the General Fund, and results in a net change of $0.

Resolution No. 22-16 Page 2 May 12, 2022
PASSED, APPROVED and ADOPTED this 12th day of May, 2022 ____________________________
Holly Sierra
Mayor
ATTEST:
___________________________
Linda Reid
City Clerk

May 12, 2022
Exhibit A FY 2021-22 Third Quarter
Budget Amendments
City of Buellton
Fiscal Year 2021-2022 Budget Amendments - Third Quarter Schedule of Expenditures for FY 2021-22: 3rd Quarter Operating Budget Amendments Fund Revenue Expenditures
Surplus
(Deficit)
001- General $ 11,883,570 $ 10,817,618 $ 1,065,952
005- Wastewater $ 3,294,375 $ 3,294,375 $ -
006- Wastewater Capital $ 886,000 $ 886,000 $ -
020- Water $ 4,808,957 $ 4,808,957 $ -
021- Water Capital $ 437,000 $ 437,000 $ -
023- Housing $ 1,225 $ 3,000 $ (1,775)
024 - Traffic Mitigation $ 80 $ - $ 80
025- Gas Tax $ 611,195 $ 611,195 $ -
027- Local Transportation $ 124,000 $ 124,000 $ -
029- Transportation Planning $ 50,064 $ 45,000 $ 5,064
031- Measure A $ 847,745 $ 847,745 $ -
032 - ARPA Funding $ 610,253 $ - $ 610,253
092 - Capital Project $ 7,630,837 $ 7,630,837 $ -
Total $ 31,185,301 $ 29,505,727 $ 1,679,574
Fund Balance Analysis

BUDGET AT A GLANCE
(WITH PROPOSED BUDGET AMENDMENTS)
May 12, 2022
Previous Related Resolutions:

Resolution No. 22- 03
"A Resolution of the City Council of the City of
Buellton, California, Regarding Mid-Year Budget
Amendments for FY 2021-22"
Resolution No. 21- 15
"A Resolution of the City Council of the City of
Buellton, California, for the Purpose of Budget
Amendments from Operational Changes Related to
Fiscal Year 2021-22 Budget through the First Quarter
Ending September 30, 2021"
Resolution No. 21- 10
"A Resolution of the City Council of the City of
Buellton, California, Adopting the Biennial Fiscal Year 2021-22 and 2022-23 Budget"
Budget Amendment Summary:

The proposed operational changes are intended to maximize operational efficiencies and enhance service delivery. The proposed amendments to the General Fund increases appropriation in the amount of $222,330. There is an existing operating surplus that will be used to offset the increase in General Fund expenditures.

The proposed amendments to the Wastewater Fund increases appropriations by $5,675 offset with a transfer from reserves of $5,675, and results in a net change of $0.

The proposed amendments to the Water Fund increases appropriations by $136,400 offset with a transfer from reserves of $136,400, and results in a net change of $0.

The proposed Capital Improvement Budget increases appropriation by $170,000. The appropriation is offset by a $170,000 transfer-in from the General Fund, and results in a net change of $0.

Fund
Beginning Fund
Balance
Operating
Revenue
Operating
Expenditures Transfers In Transfers Out
Use of
Reserve Ending Balance
001- General $ 9,668,279 $ 9,566,874 $ 8,330,922 $ - $ 2,486,696 $ 2,316,696 $ 8,417,535 005- Wastewater $ 3,232,043 $ 1,228,828 $ 1,394,960 $ - $ 1,899,415 $ 2,065,547 $ 1,166,496 006- Wastewater Capital $ 217,513 $ - $ 36,000 $ 886,000 $ 850,000 $ - $ 217,513 020- Water $ 7,178,498 $ 2,658,500 $ 2,759,671 $ - $ 2,049,286 $ 2,150,457 $ 5,028,041 021- Water Capital $ 376,774 $ - $ 37,000 $ 437,000 $ 400,000 $ - $ 376,774 023- Housing $ 491,315 $ 1,225 $ 3,000 $ - $ - $ - $ 489,540 024 - Traffic Mitigation $ 36,165 $ 80 $ - $ - $ - $ - $ 36,245 025- Gas Tax $ 462,570 $ 321,542 $ 137,000 $ - $ 474,195 $ 289,653 $ 172,917 027- Local Transportation $ 241,229 $ 4,921 $ 114,000 $ 89,079 $ 10,000 $ 30,000 $ 211,229 029- Transportation
Planning $ (103,160) $ 50,064 $ 45,000 $ - $ - $ (98,096) 031- Measure A $ 715,759 $ 391,630 $ 63,000 $ 784,745 $ 456,115 $ 259,644 032 - ARPA Funding $ - $ 610,253 $ - $ - $ 610,253
092- CIP $ - $ 7,630,837 $ 7,630,837 $ -
Total $ 22,516,985 $ 14,833,917 $ 20,551,390 $ 9,042,916 $ 8,954,337 $ 7,308,468 $ 16,888,091

May 12, 2022
Exhibit A FY 2021-22 Third Quarter
Budget Amendments
City of Buellton Fiscal Year 2021-2022 Operating Budget Amendments Schedule of Expenditures for FY 2021-22: 3rd Quarter Operating Budget Amendments Fund
Original
Budget Current Budget
Proposed
Amendments
Amended
Budget % Change % of Budget
001- General 11,166,928 11,883,570 - 11,883,570 0.00% 50.45% 005- Wastewater 3,288,700 3,288,700 5,675 3,294,375 0.17% 13.99% 006- Wastewater Capital 886,000 886,000 - 886,000 0.00% 3.76% 020- Water 4,672,557 4,672,557 136,400 4,808,957 2.92% 20.42% 021- Water Capital 437,000 437,000 - 437,000 0.00% 1.86% 023- Housing 1,225 1,225 - 1,225 0.00% 0.01%
024 - Traffic Mitigation 80 80 - 80 0.00% 0.00%
025- Gas Tax 571,195 611,195 - 611,195 0.00% 2.59%
027- Local Transportation 123,500 124,000 - 124,000 0.00% 0.53% 029- Transportation Planning 50,064 50,064 - 50,064 0.00% 0.21% 031- Measure A 847,245 847,745 - 847,745 0.00% 3.60%
032 - ARPA Funding - 610,253 - 610,253 0.00% 2.59%
Total 22,044,494 23,412,389 142,075 23,554,464 0.61% 97.41% By Fund Type
General Fund 11,166,928 11,883,570 - 11,883,570 0.00% 50.45% Enterprise Fund 9,284,257 9,284,257 142,075 9,426,332 1.53% 40.02% Special Revenue Funds 1,593,309 2,244,562 - 2,244,562 0.00% 9.53% Total: 22,044,494 23,412,389 142,075 23,554,464 0.61% 100.00% FY 2021-22 3rd Quarter Expenditure Budget Amendment Requests Fund Budget Action
Adjustment
Amount Council Action
Wastewater $ 5,675
Water $ 136,400
Budget Amendments by Account Number
Account Number Budget Item Current Budget
With Proposed
Amendment $ Change % Change
005-49652 Transfer from Reserves $ 2,059,871 $ 2,065,546 $ 5,675 0.27% 020-49661 $ 2,014,057 $ 2,150,457 $ 136,400 6.34%
Amendment Total: $ 142,075
Budget Amendments by Funding Source Type
Fund Type Current Budget
With Proposed
Amendment $ Change % Change
Wastewater $ 3,288,699 $ 3,294,374 $ 5,675 0.17%
Water Revenue and Transfers $ 4,672,557 $ 4,808,957 $ 136,400 2.84% Transfer from Reserves
Revenue and Transfers
Increase in transfer from reserves to cover increase in expenses. To be taken on May 12, 2022.

Increase in transfer from reserves to cover increase in expenses. To be taken on May 12, 2022.

May 12, 2022
Exhibit A FY 2021-22 Third Quarter
Budget Amendments
City of Buellton Fiscal Year 2021-22 Operating Budget Amendments Schedule of Expenditures for FY 2021-22: 3rd Quarter Operating Budget Amendments Fund
Original
Budget Current Budget
Proposed
Amendments Amended Budget % Change % of Budget
001- General 10,439,197 10,595,288 222,330 10,817,618 2.13% 49.45% 005- Wastewater 3,288,700 3,288,700 5,675 3,294,375 0.17% 15.06% 006- Wastewater Capital 886,000 886,000 - 886,000 0.00% 4.05% 020- Water 4,672,557 4,672,557 136,400 4,808,957 2.92% 21.98% 021- Water Capital 437,000 437,000 - 437,000 0.00% 2.00% 023- Housing 3,000 3,000 - 3,000 0.00% 0.01%
024 - Traffic Mitigation - - - - 0.00% 0.00%
025- Gas Tax 571,195 611,195 - 611,195 0.00% 2.79%
027- Local Transportation 123,500 124,000 - 124,000 0.00% 0.57% 029- Transportation
Planning 45,000 45,000 - 45,000 0.00% 0.21%
031- Measure A 847,245 847,745 - 847,745 0.00% 3.88%
032- ARPA Funding - - - - 0.00% 0.00%
Total 21,313,394 21,510,485 364,405 21,874,890 1.71% 100.00% By Fund Type
General Fund 10,439,197 10,595,288 222,330 10,817,618 2.13% 49.45% Enterprise Fund 9,284,257 9,284,257 142,075 9,426,332 1.53% 43.09% Special Revenue Funds 1,589,940 1,630,940 - 1,630,940 0.00% 7.46% Total: 21,313,394 21,510,485 364,405 21,874,890 1.71% 100.00% FY 2021-22 3rd Quarter Expenditure Budget Amendment Requests Fund Budget Action
Adjustment
Amount Council Action
General $ 70,000
General $ 100,000
General $ 15,000
General $ 4,000
General $ 5,000
General $ 2,000
General $ 15,000
General $ 11,330
Water $ 135,000
Water $ 1,400
Wastewater $ 2,675
Wastewater $ 3,000
To be taken on May 12, 2022.

Increase appropriation for additional repairs on vehicles and increase in gas costs.

To be taken on May 12, 2022.

Increase appropriation for GASB 87 implementation services. To be taken on May 12, 2022.

Increase appropriation for design of the Willemsen parking lot.

City Council authorized staff to pursue
preliminary design of parking lot on its
February 24, 2022 regular City Council
Increase appropriation for architectural services and design for the renovation of the Willemsen House.

City Council approved Architectural Services
Contract with Marchi and Associates on its
March 24, 2022 regular City Council meeting.

City Council authorized temporary Planning
Department staffing at its April 14, 2022
regular City Council meeting.

Increase appropriation for the hiring of temporary Planning Department staffing. Increase will be partly offset with salary budget savings.

Increase in appropriation for repair of Recreation buses. To be taken on May 12, 2022.

Increase in appropriation due to the increase in merchant fees associated with credit card charges taken over the Recreation Center website and insite. To be taken on May 12, 2022.

Increase in appropriation to medical benefit for the Recreation Department to correct benefit cost.

Increase in appropriation to Recreation program expenditures. To be taken on May 12, 2022.

To be taken on May 12, 2022.

Increase appropriation for increase of regulatory permit costs. To be taken on May 12, 2022.

Increase appropriation for increase of software licensing and internet cost, purchase of printers and cables. To be taken on May 12, 2022.

Increase appropriation for unexpected repairs due to erosion at Well 8, valve and pump repairs at the McMurray booster station, tree removals at McMurray Water Treatment Plant and multiple breaks throughout the City.

May 12, 2022
Exhibit A FY 2021-22 Third Quarter
Budget Amendments
Budget Amendments by Account Number
Account Budget Item Current Budget
With Proposed
Amendment $ Change % Change
001-410-60800 Contract Services 7,232 11,232 4,000 55.31% 001-410-77000 Transfer Out for Capital Outlay 2,276,696 2,446,696 170,000 0.00% 001-511-50400 Medical Benefit 25,170 36,500 11,330 45.01% 001-511-60270 Maintenance- Vehicles 11,000 16,000 5,000 0.00% 001-511-60900 Miscellaneous 5,500 7,500 2,000 36.36%
001-511-67140 Buellton Recreation Program 60,000 75,000 15,000 25.00% 001-565-60800 Contract Services 307,545 322,545 15,000 100.00% 005-701-60210 14,325 17,000 2,675 18.67%
005-701-67575 Regulatory Compliance 27,000 30,000 3,000 11.11% 020-601-60250 Maintenance and Repairs 65,000 200,000 135,000 200.00% 020-601-60270 Maintenance - Vehicles 6,100 7,500 1,400 22.95% Amendment Total: $ 364,405
Department Summary
Fund Department Current Budget
With Proposed
Amendment $ Change % Change
001 410 - Non-Departmental 3,380,506 3,554,506 174,000 5.15% 001 511 - Recreation 628,759 662,089 33,330 5.30%
001 565 - Planning 854,116 869,116 15,000 1.76%
005 701- Wastewater 3,288,700 3,294,375 5,675 0.17%
020 601- Water 4,672,557 4,808,957 136,400 2.92%
Amendment Total: $ 364,405
Computer Maintenance and Software

May 12, 2022
Exhibit A FY 2021-22 Third Quarter
Budget Amendments
City of Buellton Fiscal Year 2021-2022 Capital Improvement Budget Amendments Project Number PROJECT DESCRIPTION
FY 2021-22 Original
Budget
FY 2021-22 Current
Budget
FY 2021-22
Additions/
(Deletions)
FY 2021-22
Proposed
Amended Total % Change
092-102 Storm Drain Outfall Repairs & Re-Establishment 40,000 40,000 - 40,000 0.00% 092-205 City Hall Repair (Roof) 50,000 50,000 - 50,000 0.00% 092-207 Santa Ynez River Trail 50,000 50,000 - 50,000 0.00% 092-214 City Hall Emergency Generator/Electrical Replacement 40,000 40,000 - 40,000 0.00% 092-217 River View Park Basketball Court Resurfacing 80,000 80,000 - 80,000 0.00% 092-219 ENGIE Energy Project 3,683,837 3,683,837 3,683,837 0.00% 092-220 Willemsen Parking Lot - - 100,000 100,000 0.00% 092-221 Willemsen House Renovation - - 70,000 70,000 0.00% 092-307 McMurray Road Widening/ TS Improvements 732,000 732,000 - 732,000 0.00% 092-308 North Avenue of Flags Park & Ride 50,000 50,000 - 50,000 0.00% 092-319 Road Maintenance (20/21) 775,000 775,000 - 775,000 0.00% 092-320 Road Maintenance (21/22) 660,000 660,000 - 660,000 0.00% 092-401 Misc. River View Park Improvements 50,000 50,000 - 50,000 0.00% 092-603 WTP Facilities Improvement 150,000 150,000 - 150,000 0.00% 092-605 Water Treatment Plant 100,000 100,000 - 100,000 0.00% 092-609 Supplemental Well/WTP Feasibility 50,000 50,000 - 50,000 0.00% 092-610 Water Distribution System Improvements 100,000 100,000 - 100,000 0.00% 092-704 Sewer Line Replacement 250,000 250,000 - 250,000 0.00% 092-706 WWTP Facilities Improvements 300,000 300,000 - 300,000 0.00% 092-710 Plant Power Reliability 300,000 300,000 - 300,000 0.00% Total Capital Improvement Budget: 7,460,837 7,460,837 170,000 7,630,837 2.28% Funding Source Budget Action
Adjustment
Amount Council Action
General Fund $ 70,000
General Fund $ 100,000
General Fund $ 170,000
Budget Amendments by Account Number
Account Budget Item Type Current Budget
With Proposed
Amendment $ Change % Change
092-220-70005 Design and Permitting Expenditure - 100,000 100,000 0.00% 092-221-70005 Design and Permitting Expenditure - 70,000 70,000 0.00% 092-49727 Transfer from General Fund Revenue 2,316,696 2,486,696 170,000 7.34% Increase in transfer from General Fund. To be taken on May 12, 2022.

FY 2021-22 3rd Quarter CIP Budget Amendment Requests
City Council approved Architectural
Services Contract with Marchi and
Associates on its March 24, 2022
regular City Council meeting.

Project #092-221: Increase appropriations for architectural services and design for the renovation of the Willemsen House.

Project #092-220: Increase appropriations for design of the Willemsen Parking lot.

City Council authorized staff to pursue
preliminary design of parking lot on its
February 24, 2022 regular City Council
meeting.

CITY OF BUELLTON
City Council Agenda Staff Report
City Manager Review: SW
Council Agenda Item No.: 10
To: The Honorable Mayor and City Council
From: Scott Wolfe, City Manager
Meeting Date: May 12, 2022
Subject: Establishment of City Council Priorities for the Year 2022-23 ______________________________________________________________________________

BACKGROUND
In an effort to ascertain policy direction on items of particular interest of the City Council, staff has requested each City Council Member provide the City Manager with priorities that he or she would like to see prioritized in the coming year. To date, no specific priorities have been identified for the coming year.

The list of priorities previously adopted by the City Council is attached (Attachment 1).

These are listed in no particular order and without reference to which City Council Member proposed each one. Each item also has a status identified, with each item being identified as either Incomplete, Complete, or On-going. A status of On-going indicates that while the initial concern may have been addressed, longer-term monitoring or additional work may be required to ensure that the intent of the City Council is met.

The City Manager would like to facilitate a discussion at tonight’s City Council meeting to allow the City Council to collectively determine those priorities that reflect the general will of the City Council for the coming year, and then subsequently direct staff to work toward the achievement of those priorities. These priorities should be considered more specific than the general goals established in the budget document, which tend to be very broad in scope (Maintain a balanced budget, Continue to support economic development, Emergency Preparedness, etc.), but are more in line with some of the objectives listed in the budget document (Update Circulation Element, Acquire a generator for City Hall, Create an arts and culture committee). While the budget goals and objectives are tied specifically to points of the Vision Plan, there is no requirement that these City Council priorities do so, although they very well may.

Staff will then undertake work to achieve each of these priorities and periodically report back to the City Council on the progress of each of them. The City Council will have an opportunity at the time of these reports to adjust each priority as is deemed appropriate at the time, or to deem a priority reached or determine that a priority which has not been achieved yet is no longer necessary or desirable.

2022 City Council Goals Page 2 May 12, 2022
The establishment of priorities serves several purposes. First and foremost, it allows the City Council to set the direction of the City for the coming year. These priorities then become a portion of the work plan for the City Manager, who will then use them to inform the work plan of each City department head. By following up on the progress of these priorities, the City Council can also gauge the effectiveness of the City Manager and staff, and help determine areas where adjustment of staffing resources may be needed.

FISCAL IMPACT
The establishment of City Council priorities is not anticipated to result in direct fiscal impacts to the City. Individual priorities may require expenditure of funds which will be addressed at a future date following staff analysis and a report back to the City Council.

RECOMMENDATION
Staff recommends that the City Council identify any further priorities for addition to the existing list, take any public comment that may be given on the matter, and adopt those priorities which the City Council deems appropriate as official City Council Priorities.

ATTACHMENTS
Attachment 1 - List of existing City Council priorities

Adopted
City Council Priorities
May 2022 Update on Progress
(Completed priorities are shown as underlined)

1. Investigate the possibility of acquiring property (including portions of the Willemsen property) for future use by the City. (City Manager) STATUS: Complete (but investigation of future opportunities will continue) o February 27, 2020 – City Council discussed properties for possible acquisition in closed session.
o May 28, 2020 – Escrow closed on Willemsen Property (23.69 acres) o October-December 2020 – Staff seeking resident input on future use of the property. Discussions on future use by City Council continuing.

2. Investigate new adult fitness equipment for installation at various parks (and possibly other City-owned properties) within the City. (Recreation) STATUS: On-going
o June 2020 – Staff has been researching a variety of different outdoor fitness equipment with a particular emphasis on durability and ease of maintenance.

Locations being considered at this time are River View Park, Village Park, and possible future River Trail sites. Next steps are to arrange site visits to investigate examples of outdoor fitness equipment in other jurisdictions and gather information on the actual reliability and manufacturer maintenance support from the agency perspective, and to get cost estimates on recommended brands/models. o December 2020 - Staff has continued to research various brands of outdoor fitness equipment that may be a good fit for Buellton. Smaller packages of 3-4 pieces of equipment are in the $8,000-15,000 range not including installation. The City of Lompoc is in the process of installing a large adult fitness course at Beattie Park adjacent to a new kids playground. Lompoc Parks & Rec staff had high praise for the quality of the equipment they selected from Gametime, a manufacturer of such equipment. The most popular pieces are shown below along with prices.

2022 Council Priorities update Page 2 May 12, 2022
o April 2021 – A discussion on allocation of Proposition 68 Grant funding by the City Council resulted in a removal of exercise equipment from the grant application, as similar equipment was available at Buellton Recreation Center.

However, this has not removed the Priority from the list, and staff will continue to work on this priority without the use of Prop 68 funding.

3. Perform an audit of City Engineering responsibilities; establish that the City is getting the highest and most cost effective service through an RFP process.(Public Works)
STATUS: Complete
o Feb. 27, 2020 – City Council approved the release of the RFP for engineering services. Proposals Due by April 16, 2020.
o May 28, 2020 – City Engineering contract awarded (Complete)

4. Pursue Solar Lighting installation on Industrial Way. (Public Works) STATUS: Complete
o Feb. 27, 2020 - City Council directed staff to release RFP for equipment purchase for solar lighting, using a mixture of pedestrian height and street height lights. o December 10, 2020 – City Council to consider an agreement for a City facility energy efficiency project, which would include the installation of solar streetlights on Industrial Way. If approved by the City Council, construction could begin as early as January 2021.
o January 2022 – Installation of Solar Street lights on Industrial Way and Central Avenue was completed as part of the ENGIE project.

2022 Council Priorities update Page 3 May 12, 2022

5. Evaluate City’s sewer infrastructure to determine potential repair needs before issues arise, particularly including analysis of the potential damage to the sewer/water main along Hwy 246 across from Hitching Post II restaurant and the preparation of a plan to prevent such damage, or to respond to a line failure due to such damage. (Public Works)
STATUS: On-going
o Since the initial priority list, the trees in this vicinity have been removed by Caltrans. In prior CCTV videos/inspections/line cleaning – the sewer collection system in this area was not found to rank a high priority for repair. The City is currently preparing another RFP for the next series of CCTV/sewer line cleaning to occur over the next 3 year period. The City still has the previously prioritized list of repairs that will be worked on for repair/maintenance.

6. Create a community get-together event, possibly at Buellton Rec center. It may center around emergency preparedness, meeting City staff, or some other topic. (City Manager/Recreation)
STATUS: On-going
o June 2020 – At this point, bans on large gatherings make planning a community get-together event a little difficult. We are considering a fall event, provided large gatherings are allowed at that time, which would incorporate the Egg Hunt and some kids activities that we weren’t able to have at Easter. We are branding it as “Reopening Rockout” with Saturday TBA, 10am at River View Park. We could include staff introductions and/or emergency preparedness or health info into this event if Council wants to hit all the bases mentioned in the priority or we could keep it simple and focus on the community fun part. o December 2020 – With current gathering restrictions still in place, planning a community get-together has been tricky, but we’ve been doing our best to get creative. In addition to adapting our existing community events to follow public health guidelines, Recreation staff assisted the City Manager and Central Coast Film Society with producing a new event— a Drive-In Movie at the Willemsen Lower Field. We will also be working with Ethan Turpin, the “Walk into Wildfire” Arts & Culture Project applicant, on the Fire Safety Event to be held in the spring. As other restrictions are lifted, we look forward to ramping back up our events to bring the community together.

2022 Council Priorities update Page 4 May 12, 2022
o May 2021 – Memorial Day event at Avenue of Flags Median 4. Flag raising event held on Median 4 with local veterans group leading program. Arts and Culture Committee project provided patriotic art displays created by local school children. o November 2021 – Fall Fest was held on Avenue of Flags. Carnival Rides, Community organizations, and local music took center stage as this multi-day event came to Buellton for the first time.
o January 2022 – City staff hosted an emergency preparedness/CERT training session at the Willemsen Barn. Approximately 25 persons participated in the training event.
o June 2022 – A Community Music Festival is scheduled as part of projects associated with the City’s Arts and Culture Committee programming.

7. Have City’s landscaping contractor evaluate all City irrigation systems (particularly in the Parks) to ensure proper operation and adjust as necessary to ensure that landscaping is adequately watered. (Public Works)
STATUS: On-going
o JC Velazquez, Parks Foreman is working with Valley Gardener to audit the city’s irrigation systems and create a CIP plan for replacements. At this time, JC manages the landscape contract for Valley Gardener and oversees their work.

8. Investigate need for supplemental Asphalt Crack Sealing or other necessary repairs in Meadow Ridge sub-division. (Public Works)
STATUS: Complete (but being monitored and prioritized, if needed) o Crack sealing was completed with the 20/21 road maintenance project. This neighborhood is scheduled for its regular road maintenance in this 21/22 road maintenance project which is under design and will be out to bid soon.

9. Produce for public distribution a periodic Avenue of Flags Development Update. (Planning)
STATUS: On-going
o A publicly-distributed update on Avenue of Flags development was first published in March 2019. Subsequent updates have been published and distributed by the Planning Department as changes have taken place. Staff anticipates continuing to provide updates on average once or twice per year, or more frequently if there are sufficient items to include in an update.

2022 Council Priorities update Page 5 May 12, 2022

10. Create Additional opportunities for public engagement and participation in local government (City Manager).

STATUS: Incomplete
o The City Council added this priority in 2021, and identified opportunities such as public forums with topics such as traffic safety. The intent for one such forum was to bring in representatives from CalTrans and CHP, and possibly other state and local agencies, to discuss safety issues on Highway 246. However, as the year progressed and the COVID-19 pandemic eased and then resurged, such gatherings were impractical given public health orders in place. Staff will look for opportunities in coming months to hold such a forum with public safety or another timely topic as the focus.