City Council Agenda
City of Campbell, 70 N. First St., Campbell, California
NOTE: To protect our constituents, City officials, and City staff, the City requests all members of the public follow the guidance of the California Department of Health Servi ces', and the County of Santa Clara Health Officer Order, to help control the spread of COVID -19. Additional information regarding COVID-19 is available on the City's website at www.campbellca.gov.
This City Council Regular meeting will be conducted in person as well as telecommunication and is compliant with provisions of the Brown Act.
The City Council meeting will be live -streamed on Channel 26 or Channel 88, the City's website and on YouTube https://www.youtube.com/user/CityofCampbell for those who only wish to view the meeting.
Those members of the public wishing to provide public comment virtually are asked to register in advance at: https://www.campbellca.gov/signup. After registering, you will receive a confirmation email containing information about joining the mee ting. Members of the public may attend the meeting in person at Campbell City Hall - Council Chambers.
Public comment will also be accepted via email at [email protected] prior to the start of the meeting. Written comments will be posted on the website and distributed to the Co uncil. If you choose to email your comments, please indicate in the subject line “FOR PUBLIC COMMENT” and indicate the item number.
REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, February 21, 2023 7:30 p.m.
City Hall Council Chamber – 70 N. First Street
CALL TO ORDER
ROLL CALL
PLEDGE OF ALLEGIANCE
SPECIAL PRESENTATIONS AND PROCLAMATIONS
COMMUNICATIONS AND PETITIONS
ORAL REQUESTS
NOTE: This portion of the meeting is reserved for persons wishing to address the City Council on any matter not on the agenda. Persons wishing to address the Council are requested, but not required to complete a Speaker’s Card. Speakers are limited to two (2) minutes. The law generally prohibits the Council from discussion or taking action on such items. However, the Council may instruct staff accordingly regarding Oral Requests.
COUNCIL ANNOUNCEMENTS
CONSENT CALENDAR
NOTE: All matters listed under consent calendar are considered by the City Council to be routine and will be enacted by one motion. There will be no separate discussion of these items unless a request is made by a member of City Council, City staff, or a member of the public.
Any person wishing to speak on any item on the consent calendar should ask to have the item removed from the consent calendar prior to the time the Council votes to approve. If removed, the item will be discussed in the order in which it appears.
1. Minutes of City Council Regular Meeting of February 7, 2023 Recommended Action: Approve the regular meeting minutes of February 7, 2023.
2. Approving Bills and Claims
Recommended Action: Approve the bills and claims in the amount of $1,048,944.10.
3. Authorize the City Manager to Execute a First Amendment to the Consultant Services Agreement with CSG Consultants, Inc., for City Surveyor Services (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution authorizing the City Manager to execute a first amendment to the existing agreement with CSG Consultants, Inc. for City Surveyor services.
4. Authorization to Su bmit Planned Development Area Planning Grant Application (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution authorizing the Community Development Director to submit a Planned Development Area Planning Grant application for the Hamilton Avenue Precise Plan.
5. Authorize Staff to Move Forward with the Virginia Park Improvements Project (No. 20 -QQ) in the Current Fiscal Year (FY23) and Approve an Agreement with Miracle Play Systems to Provide Equipment and Installation Services in an Amount Not to Exceed $88,120.14, by Way of the City’s Cooperative Purchasing Agreement with Sourcewell, and Dispense of Bidding Requirements as Specified in Campbell Municipal Code Section
3.20.030(6); and Authorize the Finance Director to Ex ecute a Budget Adjustment in the Amount of $110,000 (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a resolution to: (1) authorize staff to move forward with the Virginia Park Improvements Project (No. 20 -QQ) in the current fi scal year (FY23), for the amount of $110,000, to be funded b y the re-allocation of CIP funds previously dedicated for use in Fiscal Years 25 and 26; (2) approve an agreement with Miracle Play Systems in an amount not to exceed $88,120.14 to provide Equipme nt and Installation Services through the City’s participation in a Cooperative Services Agreement with Sourcewell (a Cooperative Purchasing Firm), and dispense with bidding requirements as authorized in Campbell Municipal Code Section 3.20.030(6) for profe ssional services intended to provide information for staff’s use during project development and routine contractual services during subsequent project implementation; and (3) authorize the Finance Director to execute a budget adjustment in the amount of $110,000.
6. Commending James Redmond for Over 25 Years of Ser vice to the City of Campbell (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution commending James Redmond for his 25 years of Service to the City of Campbell.
PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES
NOTE: Members of the public may be allotted up to two (2) minutes to comment on any public hearing item. Applicants/Appellants and their representatives may be allotted up to a total of five (5) minutes for opening statements and up to a total of three (3) minutes maximum for closing statements. Items requested/recommended for continuance are subject to Council’s consent at the meeting.
NEW BUSINESS
7. Fiscal Year 2023 Mid-Year Financial Update and Budget Adj ustments (Resolution/Roll Call Vote)
Recommended Action: Staff recommends that the City Council accept the Fiscal Year 2023 Mid-Year Financial Update Report and adopt a Resolution authorizing the Fiscal Year 2023 Mid-Year Budget Adjustments.
8. Response to 2022 Civil Grand Jury Report on Financial Transparency Recommended Action: That the City Council authorize the Mayor to submit, on behalf of the City Council, the attached letter as the City’s response to the 20 22 Santa Clara County Civil Grand Jury R eport, “Show Me the Money: Financial Transparency Needed.”
9. Approval and Authorization to Purchase Five (5) New Police Ford Interceptor Utility Vehicles from Folsom Lake Ford, in an Amount Not to Exceed $382,400 by Way of the California E -Procurement Sta tewide Contract, and Authorization of a Budget Adjustment (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution authorizing the City Manager to execute a purchase agreement for fi ve (5) Ford Hybrid Interceptor Utility V ehicles, including the installation of after -market equipment, through Folsom Lake Ford, in the not -to-exceed amount of $382,400, by way of the City’s use of the California e -Procurement Statewide Contract, and authorizing the Finance Director to execute a budget adjustment.
UNFINISHED BUSINESS
10. Economic Development Strategy Workplan
Recommended Action: That the City Council receive the report regarding an overview of the Economic Development Strategy Workplan.
COUNCIL COMMITTEE REPORTS
11. Approve Appointments to the Parks & Recreation Commission Recommended Action: That the City Council approve the recommendation of the Advisory Commissioner Appointment Interview Subcommittee regarding appointments to the Parks & Recreation Commission for two four -year terms expiring December 2026.
12. Council Committee Reports
Recommended Action: That the City Council report on activities from their committee assignments.
ADJOURN
IMPORTANT NOTICE: Materials related to an item on this agenda submitted to the City C ouncil after distribution of the agenda packet are available for public inspection wit h the agenda packet in the lobby of City Clerk’s Office, 70 N. First Street, Campbell, CA 95008, during normal business hours. These materials will also be available on t he City website at https://www.ci.campbell.ca.us/agendacenter with the agenda packet following the last item of the agenda, subject to staff’s ability to post the documents prior to the meeting. Al l documents not posted prior to the meeting will be posted the next business day.
In compliance with the Americans with Disabilities Act, listening assistive devices are available for all meetings held in the City Council Chambers. If you require accommodation, please contact the City Clerk’s Office, (408) 866-2117, at least one week in advance of the meeting.
CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California
REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, February 7, 2023 – 7:30 p.m.
City Hall Council Chamber – 70 N. First Street
This City Council meeting was duly noticed pu rsuant to open meeting requirements of the Ralph M. Brown Act (G.C. Section 54956).
This meeting was recorded and can be viewed in its entirety at www.cityofcampbell.com/agendacenter.
CALL TO ORDER
The City Council of the City of Campbell convened this day in the regular meeting place, the City Hall Council Chamber, 70 N. First St., Campbell, California.
ROLL CALL
Attendee Name Title Status
Anne Bybee Mayor Present
Susan M. Landry Vice Mayor Present
Dan Furtado Councilmember Present
Sergio Lopez Councilmember Present
Elliot Scozzola Councilmember Present
PLEDGE OF ALLEGIANCE
The Pledge of Allegiance was led by Manasvini Singh and Sanskriti Singh in recognition of their participation in the Sa nta Clara County 2022 Synopsis Championship Science Fair. Mayor Bybee presented them each with a certificate of recognition for leading t he Pledge of Allegiance.
SPECIAL PRESENTATIONS AND PROCLAMATIONS
1. Present Certificates of Recognition to the STEM Wi nners of the Santa Clara Valley Science and Engineering Fair Association (SCVSEFA) 2022 Synopsis Championship Science Fair.
Recommended Action: That the City Council recognize the Campbell student winners of the Santa Clara County 2022 Synopsis Championship Science Fair.
Forrest Williams, former San Jose Councilmember and current Board Member of the Santa Clara Valley Science and Engineer ing Fair Association (SCVSEFA), spoke about their mission to promote the importance of science and engineering to encourage students to consider engineering or STEM as a career option. He 1 Packet Pg. 5
Minutes Acceptance: Minutes of Feb 7, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of February 7, 2023 City Council Meeting Page 2 introduced science fair participants and Campbell students Manasvini Singh and Sanskriti Singh and asked them to discuss their projects.
Sanskriti Singh, 11 th grader at Basis Independent Silicon Valley School, discussed her science fair project, “Automated Coronary Calcium Scoring using U-Net Models through Semi -supervised Learning on Non -Gated CT Scans.” She thanked the City Council for the recognition.
Manasvini Singh, 7th grader at Rolling Hills Middle school, discussed her science fair project, “The Detection and Segmentation of Pneumonia on CXR Images Using Unet Architecture.” She thanked the City Council for the recognition.
Mayor Bybee presented the students with certificates of recognition f or their efforts. She acknowledged Harker School student Aeliya Grover, who was unable to attend the Council meeting, for her science fair project, “Comparing the Quantity of Micro-plastics in Wild and Farmed Fish.”
The Councilmembers congr atulated the students on their projects and thanked Mr. Williams for his work on the SCVSEFA.
COMMUNICATIONS AND PETITIONS
There were no communications and petitions.
ORAL REQUESTS
Raja Pallela, Campbell resident, spoke about the upcoming Objective Standards discussions that will be coming before the City Council and noted its importance.
Indu Adhikary, Campbell resident, requested an expanded Mills Act program in recognition of the high costs required to maintain her historic home.
COUNCIL ANNOUNCEMENTS
Spread the love February is “Black History Month” and a time to honor the contributions and legacy of African Americans across U.S. history and society —from activists and civil rights pioneers, such as Harriet Tubman , Martin Luther King Jr. , Malcolm X and Rosa Parks, to leaders in industry, politics, science, culture and more. Beginning with President Gerald Ford in 1976, every American president has designated February as Black History Month and endorsed a s pecific theme. The 2023 theme is “ Black Resistance” and explores how "African A mericans have resisted historic and ongoing oppression, in all forms, especially the racial terrorism of lyn ching, racial pogroms and police killings," since the nation's earliest days.
For 131 years, Early Settlers & Heritage Day has been a Campbell tra dition, and it is now the longest running community celebration in California. The event pays tribute to the history of Campbell and those who pioneered its beginnings. The 2023 celebration is scheduled for Monday, February 20, from 11:00 am to 2:00 pm at Orchard City Banquet Hall. The guest speaker is Janan Boehme, House Historian and Special 1 Packet Pg. 6
Minutes Acceptance: Minutes of Feb 7, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of February 7, 2023 City Council Meeting Page 3 Projects Manager for the Winchester Mystery House. Additional details can be found at the Campbell Chamber of Commerce website.
Campbell’s 46th annual Valentine 5K Fun Run/Walk is on Saturday, February 11 at 9:00 am. Don’t delay, get registered in advance to receive y our free race shirt and medals! Please visit campbellca.gov for more information and to register.
The AARP Tax Aid Program will provide income tax assistance free of charge through April 14 at the Campbell Community Center. The AARP Tax-Aide Program provides tax assistance to anyone, free of charge, with a focus on taxpayers who are over 50 and have a low to moderate income. For more information, please visit campbellca.gov.
The Campbell Youth Commission is hosting a Teen Job Fair for part time, seasonal and internships on Saturday, March 4 from 12:30 pm to 2:30 pm at the Campbell Community Center, Orchard City Banquet Hall located at One W. Campbell Avenue.
Employer’s interested in hosting a table, please visit bit.ly/campbelljobfair. Forms must be completed by February 17, and spaces are limited.
City Hall offices will be closed on Monday, February 20 in observance of Presidents Day. Police and Emergency services will remain open to the public.
CONSENT CALENDAR
Due to technical difficulties with an online public speaker, the Consent Calendar was taken out of order and heard following Item seven.
Mayor Bybee asked if anyone wished to remove an item from the Consent Calendar.
The Consent Calendar was considered as follows:
2. Minutes of City Council Executive Session Meeting of January 23, 2023 Recommended Action : Approve the executive session meeting minutes of January 23, 2023.
This action approves the executive session meeting minutes of January 23, 2023.
3. Minutes of City Council Regular Meeting of January 23, 2023 Recommended Action : Approve the regular meeting minute s of January 23, 2023.
This action approves the regular meeting minutes of January 23, 2023.
4. Approving Bills and Claims
Recommended Action: Approve the bills and claims in the amount of 914,219.48.
This action approves the bills and claims in the amou nt of $914,219.48 as follows: payroll checks dated January 5, 2023, in the amount of $70,458.66; bills and claims checks dated January 9, 2023, in the amount of $316,042.15; bills and claims checks dated January 16, 2023, in the amount of $495,027.41; and payroll checks dated January 19, 2023, in the amount of $32,691.26.
5. Investment Report - Quarter Ending December 2022
1 Packet Pg. 7
Minutes Acceptance: Minutes of Feb 7, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of February 7, 2023 City Council Meeting Page 4 Recommended Action: That the City Council approve the Inves tment Report for the quarter ending December 2022 and the report be noted and filed.
This action notes and files the Investment Report for the quarter ending December 2022.
6. Authorization to Submit 2016 Measure B Bicycle & Pedestrian Planning Studies Gr ant Application for the Hamilton Avenue/Highway 17 Bicycle Overcrossing Planning Study (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt the resolution authorizing the Public Works Director to submit a 2016 Measure B Bicycle & Pe destrian Planning Studies Competitive Grant Program grant application for the Hamilton Avenue/Highway 17 Bicycle Overcrossing Planning Study.
Resolution 12935 authorizes the Public Works Director to submit a 2016 Measure B Bicycle & Pedestrian Planning St udies Competitive Grant Program grant application for the Hamilton Avenue/Highway 17 Bicycle Overcrossing Planning Study.
M/S: Lopez/Landry - That the City Council approve the consent calendar.
The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Lopez
SECONDER: Landry
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES
Due to technical difficulties this item was taken out of order and heard following the Council Announcements.
7. Public Hearing to Consider an Interim Ordinance to Adopt Urgency Revisions to Title 21 Related to Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) to Conform with Recent State Legislation (AB-2221 and SB -897). File No. PLN -2022-166 (Ordinance/Roll Call Vote).
Recommended Action: It is recommended that City Council adopt an interim ordinance approving urgency revisions to Title 21 to conform with recent State legislation (AB-2221 and SB-897).
This is the time and place for a public hearing to consider adopting an interim ordinance approving urgency revisions to Title 21 r elated to Accessory Dwelling Units (ADUs) and Junior Accessory Dwelling Units (JADUs) to conform with recent State legislation (AB-2221 and SB-897).
Senior Planner Fama presented a staff report dated February 7, 2023.
Councilmembers asked general questions related to the staff report.
Mayor Bybee opened the public hearing and asked if anyone wished to speak. 1 Packet Pg. 8
Minutes Acceptance: Minutes of Feb 7, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of February 7, 2023 City Council Meeting Page 5
Raja Pallela, Campbell resident, requested tha t development standards exemptions apply to Accessory Dwelling Units up to 1,200 sq. ft. rather than 800 sq. ft. in the San Tomas Area , because the San Tomas Area Neighborhood Plan (STANP) is more restrictive.
Seeing no one else wishing to speak, Mayor Bybee closed the public hearing.
After discussion, M/S: Landry/Scozzola - That the City Council adopt interim Ordinance 2291 approving urgency revisions to Title 21 to conform with recent State legislation (AB -2221 and SB -897). The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Landry
SECONDER: Scozzola
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
City Clerk Sanders read the full title of Ordinance 2291.
M/S: Landry/Lopez – That the City Council waive further readi ng of Ordinance 2291. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Landry
SECONDER: Lopez
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
NEW BUSINESS
There was no new business.
UNFINISHED BUSINESS
8. Campbell’s Plan for Housing (2023 -2031 Housing Element) (File No. PLN - 2021-12)
Recommended Action: Provide direction to staff on modifications to Campbell’s Plan for Housing (2023-2031 Housing Element) in response to feedback received from the California Department of Housing and Community Development (HCD).
Community Development Director Eastwood introduced the item, sta ff, and Opticos consultant team members Jeff Bradley, Karen Warner and Asher Kohn, and presented an overview and purpose for the discussion.
Senior Planner Rose presented a staff report dated February 7, 2023. He recommended four main topics for discussio n: emergency shelters, permanent supportive housing, parking requirements and microunit production.
Councilmembers asked general questions rela ted to the staff presentation.
Councilmember Furtado requested the Housing Element have a section on definitions and acronyms. Vice Mayor Landry asked questions related to 1 Packet Pg. 9
Minutes Acceptance: Minutes of Feb 7, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of February 7, 2023 City Council Meeting Page 6 Economy Lumber and its location in the map for emergency shelters and how that would affect sales tax.
Mayor Bybee asked if anyone from the public wished to speak.
A member of the Local 405 Carp enters Union requested information be included in the Housing Element related to labor, local hires, apprenticeship programs and health care ben efits for laborers. He noted the importance of implementing Area Labor Standards and referenced San Mateo and Menlo Park as examples.
Raja Pallela, Campbell resident, noted that the Dell area is greatly underused and would be a great area to be rezoned fo r an emergency shelter housing designation. He commented on parking and requested reduced parking requirements.
Councilmembers were generally supportive of the staff recommendations with the exception of Economy Lumber remaining as part of the emergency s helter designation. There was a general consensus to exclude Economy Lumber from the emergency shelter zone.
COUNCIL COMMITTEE REPORTS
9. Council Committee Reports
Recommended Action: That the City Council report on activities from their committee assignments.
Councilmember Furtado attended the West Valley Clean Water JPA meeting, noting he was appointed Vice Chair for the committee; and attended the West Valley Solid Waste Authority JPA meeting.
Vice Mayor Landry attended the Santa Clara Valley Water Di strict County Water Commission meeting, where they discussed their proposed water conservation ordinance and requested that staff look into adopting a City water conservation ordinance; and attended the Santa Clara County Library District JPA forum and Education Subcommittee meeting with Councilmember Scozzola.
Councilmember Scozzola attended the Santa Clara County Library District JPA forum and Education Subcommittee meeting with Vice Mayor Landry.
Councilmember Lopez attended the Bay Area Quality Manage ment District Board of Directors meeting; the League of Citi es Peninsula Division Executive Committee’s Housing Policy meeting; a meeting to discuss upcoming events including an upcoming mental health event to be held in March; a Santa Clara Valley Transpo rtation Authority workshop and a Santa Clara Valley Transportation Authority Board of Directors meeting.
Mayor Bybee attended the West Valley Mayors and Managers meeting with City Manager Loventhal; attended the Cities Association of Santa Clara County meeting; attended the State of the County 2023, which include d the swearing in 1 Packet Pg. 10
Minutes Acceptance: Minutes of Feb 7, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of February 7, 2023 City Council Meeting Page 7 of Board of Supervisors President Susan Ellenberg; and attended the swearing in of Santa Clara County Sheriff Robert Jonsen.
Mayor Bybee announced that the City Council will be holding a Council Priorities Session on February 16, 2023 from 4:00-7:00 p.m.
ADJOURN
Mayor Bybee adjourned the meeting at 9:23 p.m.
APPROVED:
ATTEST:
Anne Bybee, Mayor
Andrea Sanders, City Clerk
1 Packet Pg. 11
Minutes Acceptance: Minutes of Feb 7, 2023 7:30 PM (CONSENT CALENDAR)
City
Council
Report
TITLE: Approving Bills and Claims
RECOMMENDED ACTION
Approve the bills and claims in the amount of $1,048,944.10.
DISCUSSION
The bills and claims that have be en audited and approved by staff for payments made as noted below:
Type Check Date Amount
Bills & Claims January 23, 2023 $312,343.53
Bills & Claims January 30, 2023 $666,485.00
Payroll February 02, 2023 $70,115.57
Total $1,048,944.10
FISCAL IMPACT
Requested action does not require a budget adjustment. Adequate funding was available to cover all expenses as listed.
Prepared by:
Celia Deniz, Accounting Clerk II
Reviewed by:
Norite Vong, Finance Manager
Item: 2
Category: CONSENT CALENDAR
Meeting Date: February 21, 2023
2 Packet Pg. 12
Approving Bills and Claims Page 2 of 2
Approved by:
Angelique Gaeta, Assistant City
Manager
2 Packet Pg. 13
City
Council
Report
TITLE: Authorize the City Manager to Execute a First Amendment to the Consultant Services Agreement with CSG Consultants, Inc., for City Surveyor Services (Resolution/Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt a resolution authorizing the City Manager to execute a first amendment to the existing agreement with CSG Consultants, Inc. for City Surveyor services.
BACKGROUND
The City’s review of subdivision maps is subject to the requirements of the State of California Subdivision Map Act which requires a California licensed land surveyor to review and sign all subdivision maps certifying them as technically correct. Larger cities typically have the need and the resources to maintain a licensed land surveyor on staff who is designated the City Surveyor for the purpose of reviewing and signing subdivision maps. To comply with the Map Act’s requirements and without a California licensed land surveyor on staff, the City must contract for services performed under the functions of the “City Surveyor”.
On January 19, 2021, the City Council authorized the City Manager to issue a Request for Proposals (RFP) for City Surveyor services. The approval allow ed for an initial two - year agreement to be negotiated and signed by the City Manager to take effect beginning July 1, 2021, for a not-to-exceed amount of $60,000 plus the option to include up to five (5) additional one (1) year extensions for a total of se ven (7) years.
Furthermore, each one -year extension would also add an additional $30,000 to the agreement.
The City received eight proposals in response to the RFP. After staff review of the proposals, CSG Consultants, Inc. (CSG) was found to be the most qualified for the work.
On July 1, 2021, the City of Campbell and CSG entered into an agreement to provide City Surveyor services with the initial two-year period expiring on June 30, 2023.
On September 16, 2021, Senate Bill No. 9 (SB -9) was signed int o law by Governor Newsom, to become effective on January 1, 2022. Among other changes, SB -9 allows Item: 3
Category: CONSENT CALENDAR
Meeting Date: February 21, 2023
3 Packet Pg. 14
CSG Contract Amendment Page 2 of 4
all properties within a "single -family residential zone" to be subdivided into two parcels using a new process known as an "Urban Lot Split". Urban Lot Spl its are processed as Parcel Maps, but per SB -9 the City cannot require any street dedications or street improvements, making it easy and cost -effective for property owners to split their single family lots with minimal up -front costs. As a result, in cale ndar year 2022, the City received five (5) applications for Urban Lot Splits which were processed as Parcel Maps.
DISCUSSION
With CSG under contract with the City as the City Surveyor, it provides the review of all Parcel Maps, Tract Maps, Lot Line Adjus tments, Easement Dedications and other miscellaneous documents. Staff has found CSG to be responsible, responsive, and effective in assisting with these reviews, ensuring that our customers have their projects processed in a timely manner.
The executed a greement with CSG is essentially a time and materials agreement. As applications requiring City Surveyor reviews such as Parcel Maps, Tract Maps, Lot Line Adjustments, Street Dedications, and occasionally a Street Vacation are submitted, the application f ees are collected up -front as set by the current City Fee Schedule. The application fee collected for such work pays for both the associated City staff time and the costs for the surveying services provided by CSG. The City compensates CSG only for the work they complete in doing their reviews. In the event that economic conditions result in a slowdown in application activities, the work performed by CSG would decrease accordingly, as would their billing and payments under the agreement.
Conversely, based on current experience, an increase in application activities results in a commensurate increase in work and payments.
As previously mentioned, the adoption of SB -9 by the State and the creation of the Urban Lot Split process has resulted in a signific ant increase in map review workload, above and beyond the historical projections used to develop the original budget for the CSG Agreement. Current projections estimate an additional seven (7) SB -9 Urban Lot Splits per year going forward.
The initial term of the current agreement with CSG expires on June 30, 2023, and as of December 31, 2022, the current contract amount of $60,000 has $6,644 remaining. An estimated contract increase of an additional $20,000 is required to provide services through the rema inder of this fiscal year. Additionally, the initial estimate of approximately $30,000 per year for subsequent years for these services will not be enough going forward given the increased workload to support SB -9 Urban Lot Splits.
Based on the anticipat ed additional seven (7) SB -9 Urban Lot Splits per year, the annual budget with CSG will need to be increased to $50,000. Since the CSG Agreement allows for Consumer Price Index (CPI) adjustments (up to 5% annually) to the CSG hourly rates, the annual budge t amount should be adjusted annually based on the CPI for the San Francisco Bay Area, consistent with the annual increase to the City’s Fee Schedule. Additionally, with State housing legislation changes as 3 Packet Pg. 15
CSG Contract Amendment Page 3 of 4
experienced recently, workload is unpredictable and can fluctuate significantly from year to year; therefore, staff is also requesting the inclusion of a 15% contingency to the annual contract amount.
Staff is therefore recommending that the current agreement with CSG Consultants, Inc. be amended to: 1) increase the new maximum amount for the initial two -year term to $80,000 from the current limit of $60,000 through June 30, 2023; and 2) increase the annual extension authorization from $30,000 to $50,000, adjusted annually per the Consumer Price Index fo r the San Francisco Bay Area, plus an additional 15% contingency as necessary based on projections of application trends for future years.
The attached resolution has been prepared to authorize the City Manager or his designee to execute the first amendmen t to the current agreement with CSG Consultants, Inc.
FISCAL IMPACT
Funding for the additional $20,000 being requested is available in the current FY 22/23 Public Works Operating Budget, Program 740, Land Development, and is funded from revenues collect ed from the fees charged for various engineering and subdivision applications and permits. Per the current Fee Schedule, the City charges applicants $5,784 per Parcel Map application, which will result in additional annual revenue estimated at $40,488. Funding for the increased expenditures for FY 23/24 and beyond will be addressed as part of the upcoming budget process.
ALTERNATIVES
Do not approve an amendment to the agreement with CSG Consultants to increase funds and defer any remaining and newly rec eived map reviews until July 2023 when new funding becomes available under the terms of the existing agreement.
Prepared by:
Roger Storz, Senior Civil Engineer
Reviewed by:
Todd Capurso, Director of Public Works
3 Packet Pg. 16
CSG Contract Amendment Page 4 of 4
Approved by:
Angelique Gaeta, Assistant City
Manager
Attachment:
a. Resolution
3 Packet Pg. 17
RESOLUTION NO. ______________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
AUTHORIZING THE CITY MANAGER TO EXECUTE A FIRST
AMENDMENT TO THE AGREEMENT WITH CSG CONSULTANTS, INC.
FOR CITY SURVEYOR SERVICES
WHEREAS, the Subdivision Map Act re quires a California licensed land surveyor to review and sign all subdivision maps as the City Surveyor; and
WHEREAS, the City desires to continue consulting services for the purpose of reviewing and signing parcel and tract maps by a licensed land surve yor acting as the City Surveyor; and
WHEREAS, on July 1, 2021, the City entered into an agre ement with CSG Consultants, Inc. to provide City Surveyor services; and
WHEREAS, CSG Consultants has the expertise, means, and ability to perform the services as the City Surveyor; and
WHEREAS, the terms of the existing agreement entered into on July 1, 2021 allow for an initial two -year agreement through June 30, 2023 for a not to exceed amount of $60,000 plus the option to include up to five (5) additional one (1) year extensions for a total of seven (7) years; and
WHEREAS, each one -year extension would also add an additional $30,000 to the agreement; and
WHEREAS, on January 1, 2022, Sen ate Bill No. 9 went into effect and has since resulted in a significant in crease in map review workload, above and beyond the historical projections used to develop the original budget for the CSG Agreement; and
WHEREAS, the terms allow the agreement to be amended in writing.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby authorizes the City Manager or his designee to execute a first amendment to the agreement between the City of Campbell and CSG Consultants, Inc. to increase the not to exceed amount for the in itial two-year term from $60, 000 to $80,000, through June 30, 2023 ; increase the not to exceed amount previously authorized for the annual extensions from $30,000 to $50,000 , to be adjusted annually per the Consumer Price Index for the San Francisco Bay Area ; and add to the agreement an additional 15% contingency as necessary based on projections of application trends for future years.
PASSED AND ADOPTED this _______ day of __________, 2023 by the following roll call vote:
AYES: Councilmembers:
NOES: Councilmembers:
3.a
Packet Pg. 18
Attachment: Resolution (CSG Contract Amendment)
ABSENT: Councilmembers:
APPROVED:
____________________________
Anne Bybee, Mayor
ATTEST:
_______________________________
Andrea Sanders, City Clerk
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Attachment: Resolution (CSG Contract Amendment)
City
Council
Report
TITLE: Authorization to Submit Planned Development Area Planning Grant Application (Resolution/Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt a Resolution authorizing the Community Development Director to submit a Planned Development Area Planning Grant application for the Hamilton Avenue Precise Plan.
BACKGROUND
The Draft Envision Campbell General Plan update identified the creation of a Precise Plan along the Hamilton Avenue corridor (“Hamilton Avenue Precise Plan”), east and west of the Highway 17 interchange (see Figure 1) , with the objective of identifying new transportation improvements that would support future development in this area.
Under the Draft 2023 Housing Element (“Campbell’s Plan for Housing”), the City of Campbell (City) has identified several housing opportunity sites within the identified Hamilton Avenue Precise Plan Area (up to 1,500 units total). The majority of these sites, including the former Electronic Fry’s site located at Salmar and Hamilton Avenue, are planned for high density residential development under a “ Transit-Oriented Mixed Use” land use designations of 75 dwelling units per acre.
On July 5, 2022, the City Council authorized the Public Works Director to submit grant applications for One Bay Area Grant Cycle 3 (“OBAG 3”) grants. The applications included two grants for capital improvements, the Hamilton Avenue Street Resurfacing Project and the P riority Developoment Area Enhancements Project, and a planning grant application for the Hamilton Avenue Precise Plan.
In the fall of 2022, the OBAG 3 Gran ts were evaluated by the Santa Clara Valley Transportation Authority for ranking and for recommendations to the Metropolitan Transportation Commission (MTC) for funding. The Hamilton Avenue Precise Plan was ranked the highest for all planning grants submi tted, but ranked lower compared to other applications identified to fund infrastructure improvements.
In January 2023, the MTC reviewed all OBAG 3 grant applications and identified projects for funding. The Hamilton Avenue Precise Plan application was ranked lower than other applications and was not identified to be awarded for funding. The Hamilton Item: 4
Category: CONSENT CALENDAR
Meeting Date: February 21, 2023
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PDA Planning Grant Application Page 2 of 4
Avenue Precise Plan was then placed on a contingency list to be available for potential future funding by MTC.
In December 2022, MTC separately announced the opening of grant applications for the Priority Development Area (“PDA”) Planning Grant, with a deadline of February 23, 2023 to submit a grant application. The PDA Planning Grant is intended to fund planning activities within PDA’s, including the pr eparation of precise, specific, or similar plans. Earlier this month, Community Development Department staff contacted MTC staff to obtain initial feedback on the suitability of the City applying for a PDA Planning Grant for the Hamilton Avenue Precise Pl an. MTC Staff provided feedback that the Hamilton Avenue Precise Plan would qualify and encouraged the City to apply.
DISCUSSION
The PDA Planning Grant program has a total amount of funding of $15 million, provides funding of up to $1.2 million per project, and does not require a local match.
Staff is proposing that the City apply for a PDA Planning Grant to fund preparation of the Hamilton Avenue Precise Plan at a cost of $400,000. The Hamilton Avenue Precise Plan project would support the devel opment of high -density residential development around the Hamilton Avenue Light Rail Station in conformance with the City’s General Plan and Housing Element and consistent with transit -oriented development principles.
One identified challenge associated w ith this planned housing will be providing safe pedestrian access for the housing sites west of Highway 17 (up to 1,500 units total) to the VTA Hamilton Light Rail Station on the east side of the Highway 17.
The project would include the following key deliverables in its scope of work:
• Redevelopment of commercial properties identified as housing opportunity sites in Campbell’s Plan for Housing (2023 -2031 Housing Element Update) (e.g., former Fry’s Electronics and Elephant Bar) under a ‘Transit -Oriented Mixed-Use’ land use designation which will support a range of housing options.
• Preliminary design and cost -estimation of connectivity and infrastructure enhancements, such as a pedestrian bridge, to provide safer east -west connectivity across Highway 17 to Hamilton Light Rail Station for bicycles and pedestrians.
• Identification of urban design enhancements in association with new development, recognizing the Hamilton / Highway 17 interchange as a key gateway to the City.
• Nexus study and establishme nt of development impact fees for projects within the plan area to support the construction of planned connectivity enhancements and design improvements.
• Environmental Impact Report (EIR) evaluating future development and improvements in the Precise Plan area.
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PDA Planning Grant Application Page 3 of 4
Figure 1: Draft Boundary of Hamilton Avenue Precise Plan Area
• Development of the Hamilton Avenue Precise Plan will complement MTC’s Transit Oriented Communities Policy and promote transit ridership. • Establishment of planning b oundaries that overlap with a local Priority Development Area (PDA) and Transit -Rich Areas identified by the Plan Bay Area 2050 Growth Geographies map.
Staff believes that the City’s PDA Planning Grant application will be rated favorably as the Hamilton Avenue Precise Plan project is consistent with many of the program objectives within MTC’s Plan Bay Ar ea 2050, listed in the grant application guide as following:
• Increase in affordable housing production and preservation, • Overall housing production and increase in transit ridership, • Decrease in in vehicle miles travelled (VMT).
The Hamilton Avenu e Precise Plan area is located partially within Campbell’s PDA – identified as the “Campbell Central Redevelopment Area”. Development and implementation of the Hamilton Avenue Precise Plan will support the objectives of the PDA to link new development wit h mass transit. As part of the Hamilton Avenue Precise Plan preparation process, the City can evaluate if the PDA should be expanded to include all areas within the Hamilton Avenue Precise Plan area. Application for a PDA Planning Grant requires a local jurisdiction to be consistent with MTC’s Transit Oriented Communities (TOC) policies. Staff has reviewed the TOC Policies and identified that the City is consistent with most of the policies, specifically the targeted residential densities and priorities for housing development.
To support the City’s application, City staff has reached out to staff in the following agencies to solicit letters of sup port – Santa Clara Valley Transit Authority (VTA), CatalyzeSV, Santa Clara County Office of Supportive Housing, and the Santa Clara County Housing Authority.
FISCAL IMPACT
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PDA Planning Grant Application Page 4 of 4
The PDA Planning grant does not require a local match and thus all funding for the Hamilton Avenue Precise Plan (estimated at $400,000) is proposed to be funded through grant funding from MTC.
In the prior authorization by the City Council on July 5, 2022 to apply for OBAG 3 grant funding, the City acknowledged the need to commit $100,000 in local match funding consistent with the OBAG 3 requirements. If the PDA Planning Grant application is successful, this match funding required form the City will no longer be needed.
ALTERNATIVES
Do not submit the PDA Planning grant appl ications for the Hamilton Avenue Precise Plan project. Pursuant to Council direction, staff will identify other potential funding sources to support development of the project.
Prepared by:
Rob Eastwood, Community Development
Director
Approved by:
Angelique Gaeta, Assistant City
Manager
Attachment:
a. Resolution - PDA Planning Grants Hamilton Ave Precise Plan b. Combined Letters of Support - PDA Planning Grant
4 Packet Pg. 23
RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
AUTHORIZING THE COMMUNITY DEVELOPMENT DIRECTOR TO SUBMIT A
PRIORITY DEVELOPMENT AREA (PDA) PLANNING GRANT APPLICATION
WHEREAS, on December 1, 2022, the Metropolitan Transportation Commission (MTC) announced a Call for Projects for Priority Development Area (PDA) Planning Grants, and informed local jurisdictions of a February 23, 2023 deadline for submittals of Applications, as well as grant requirements including compliance with the Transit Oriented Communities Policy; and
WHEREAS, the MTC PDA grant funding may be used for three types of planning activities including preparing, amending, or implementing plans; and WHEREAS, the City of Campbell has established a Priority Development Area (PDA) in Campbell entitled the Central Redevelopment Area PDA; and WHEREAS, the Draft 2040 General Plan (“Envision Campbell”) contemplates the creation of a Hamilton Avenue Precise Plan , with a planning area that would extend along the Hamilton Avenue corridor , east and west of the Highway 17 interchange ; and
WHEREAS, a primary objective of the Hamilton Avenue Precise Plan would be to identify new transportation improvements that would support future development within the planning area; and
WHEREAS, under the Draft 2023 Housing Element (“Campbell’s Plan for Housing”), the City has identified several housing opportunity sites within the identified Hamilton Avenue Precise Plan Area (up to 1,500 units total) , the majority of which are planned for high density residential development under a “Transit-Oriented Mixed Use” land use designation of 75 dwelling units per acre; and WHEREAS, the MTC PDA Planning Grant would fund preparation of the Hamilton Avenue Precise Plan which is substantially located within the Central Redevelopment Area PDA; and
WHEREAS, the preparation of the Hamilton Avenue Precise Plan will act to support the development of transit-oriented housing development around the Hamilton Avenue Light Rail station and will identify improvement to help facilitate safe access to the light rail station, including crossing Highway 17; and WHEREAS, staff estimate s the cost of this effort to be $400,000 where the maximum grant award for the preparation of a specific, precise, or similar plan eligible under the MTC PDA grant funding application is 1.2 million; and
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Attachment: Resolution - PDA Planning Grants Hamilton Ave Precise Plan (PDA Planning Grant Application) WHEREAS, the development of a Hamilton Avenue Precise Plan meets the MTC PDA grant application requirements for preparing a precise plan and through its development would further the implementation of the Draft General Plan and Housing Element.
NOW, THEREFORE, BE IT RESOLVED , that the City Council of the City of Campbell authorizes the Community Development Director to submit a Planned Development Area Planning grant application to MTC for the Hamilton Avenue Precise Plan.
PASSED AND ADOPTED this _____ day of ________, ______, by the following roll call vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS
ABSENT: COUNCILMEMBERS:
APPROVED:
______________________________
Anne Bybee, Mayor
ATTEST:
_________________________________
Andrea Sanders, City Clerk
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Attachment: Resolution - PDA Planning Grants Hamilton Ave Precise Plan (PDA Planning Grant Application)
February 8, 2023
Mark Shorett
PDA Program Manager
Metropolitan Transportation Commission
375 Beale Street, Suite 800, San Francisco CA 94105-2066 [email protected]
RE: Letter of Support for the City of Campbell “Hamilton Avenue Precise Plan” (Priority Development Area Planning Grant)
Dear Mark:
Please accept this letter from the Silicon Valley-based nonprofit organization Catalyze SV supporting the City of Campbell’s application for a Priority Development Area Planning Grant (“PDA Planning Grant”) for the Hamilton Avenue Precise Plan.
Catalyze SV collaborates with local governments to envision and create sustainable, equitable & vibrant places for people. Campbell is making strides on these essential outcomes and we wish to support their further efforts.
Campbell’s proposed Hamilton Avenue Precise Plan aligns with the goals and objectives of Plan Bay Area 2050 by planning for transit-oriented development surrounding the Valley Transportation Authority Hamilton Light Rail Station.
Catalyze SV members support inclusive communities that provide housing for all. So we are grateful the City of Campbell is planning for up to 1,200 housing units in the area surrounding the Hamilton Light Rail Station using a Transit-Oriented Mixed-Use land use designation that will support residential densities of 75 dwelling units per acre. That level of density is a great start!
With it’s 2023-2031 Housing Element, Campbell has also identified several programs that will support the development of affordable housing in the Hamilton Avenue Precise Plan area, including enhancements to the City’s Inclusionary Housing Ordinance and the creation of an Affordable Housing Overlay Zone.
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Attachment: Combined Letters of Support - PDA Planning Grant (PDA Planning Grant Application) In addition, Catalyze SV is very supportive of the City’s consideration of reducing its parking requirements to support housing development in transit areas, which will further the goals of this Grant.
All these efforts from Campbell will make progress on shared state, regional and local goals of increasing housing supply and affordability, lowering vehicle miles traveled, and reducing greenhouse gas emissions.
Please accept Catalyze SV’s support for the City of Campbell in their application to obtain a PDA Planning Grant for the Hamilton Avenue Precise Plan.
Please do not hesitate to contact me with any questions at 408-599-9817.
Sincerely,
Alex Shoor, Executive Director
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Attachment: Combined Letters of Support - PDA Planning Grant (PDA Planning Grant Application) February 6, 2023
Mark Shorett
PDA Program Manager
Metropolitan Transportation Commission
375 Beale Street, Suite 800, San Francisco CA 94105-2066 [email protected]
RE: Letter of Support for the City of Campbell “Hamilton Avenue Precise Plan” (Priority Development Area Planning Grant)
Dear Mr. Shorett:
I am writing this letter in support of the City of Campbell’s application for a Priority Development Area Planning Grant for the development of the Hamilton Avenue Precise Plan.
When I was a member of the City’s General Plan Advisory Committee (GPAC), I was quite familiar with the area where Hamilton Avenue crosses over Highway 17 since I live less than a mile away. As a driver using Hamilton Avenue and entering Highway 17, either northbound or southbound, I frequently encountered pedestrians attempting to cross my path at the crosswalk of the on-ramp/off- ramp. This encounter requires special attention be paid by both the driver and the pedestrian to avoid sudden braking, since the configuration of the lanes of vehicle travel and crosswalks are somewhat unfamiliar to the elderly, the very young, or the distracted pedestrian.
To be safe when crossing the southbound on-ramp it is necessary for the pedestrian to turn his head and look back over his left shoulder at approaching traffic to avoid being hit. When pedestrians are also pushing a baby stroller or walking a dog this can become problematic. And when a bicycle rider decides to utilize the pedestrian option and use the crosswalk in front of oncoming traffic the situation becomes more dangerous. In the past few years I have avoided walking along Hamilton Avenue as it crosses these three problematic vehicle interfaces in rapid succession. A pedestrian overpass from the light rail station to Hamilton Avenue would be a welcome improvement.
Since the GPAC identified the area of Hamilton Avenue from the Creekside Drive/Light Rail Station to Salmar Avenue for high density housing developments, the addition of 1,200 new housing units will bring much heavier pedestrian traffic to the area surrounding the Light Rail Station. The housing development plans cited in the Hamilton Avenue Specific Plan should also require pedestrian safety improvements be made at the same time.
Please do not hesitate to contact me with any questions at (408) 866-0942.
Sincerely,
Barry Shilman
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Attachment: Combined Letters of Support - PDA Planning Grant (PDA Planning Grant Application)
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Attachment: Combined Letters of Support - PDA Planning Grant (PDA Planning Grant Application)
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Attachment: Combined Letters of Support - PDA Planning Grant (PDA Planning Grant Application)
City
Council
Report
TITLE: Authorize Staff to Move Forward with the Virginia Park Improvements Project (No. 20-QQ) in the Current Fiscal Year (FY23) and Approve an Agreement with Mir acle Play Systems to Provide Equipment and Installation Services in an Amount Not to Exceed $88,120.14, by Way of the City’s Cooperative Purchasing Agreement with Sourcewell, and Dispense of Bidding Requirements as Specified in Campbell Municipal Code Sect ion 3.20.030(6); and Authorize the Finance Director to Execute a Budget Adjustment in the Amount of $110,000 (Resolution/Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt a resolution to: (1) authorize staff to move forward with the Virginia Park Improvements Project (No. 20 -QQ) in the current fiscal year (FY23), for the amount of $110,000, to be funded by the re -allocation of CIP funds previously dedicated for use in Fiscal Years 25 and 26; (2) approve an agreement with Miracle Play Systems in an amount not to exceed $88,120.14 to provide Equipment and Installation Services through the City’s participation in a Cooperative Services Agreement with Sourcewell (a Cooperative Purchasing Firm), and dispense with bidding requirements as authorized in Campbell Municipal Code Section 3.20.030(6) for professional services intended to provide information for staff’s use during project development and routine contractual services during subsequent project implementation; and (3) authorize the Finance Dir ector to execute a budget adjustment in the amount of $110,000.
BACKGROUND
For over 20 years, the children’s play structure at Virginia Park in the City of Campbell (City) has been enjoyed by visitors of all ages . The park has also been routinely maintained to ensure availability of its amenities to members of the Campbell Community. In addition to occasional equipment repairs and landscaping improvements, the City’s maintenance efforts have been successful in sustaining the public’s access to park amenities without the need for major upgrades or closures during those years.
In 2014, the Public Works Maintenance Division performed a series of asset reviews and condition assessments throughout City parks to develop a plan that would systematically improve the City’s park system . Based on those results, the Public Works Department Item: 5
Category: CONSENT CALENDAR
Meeting Date: February 21, 2023
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Virginia Park Improvements Project Page 2 of 5
established the ‘Parks and Maintenance Program Asset Management Plan’ which was subsequently completed in 2015. Virginia Park was included in staff’s assessment and categorized as a ‘moderate priority’ rehabilitation project based on the needs of similar - ranked parks throughout the City.
Since 2015, the City has completed most of the improvement projects identified through its Parks and Maintenance Program Asset Management Plan that were considered ‘high’ or ‘moderate’ priorities. Recent examples include the Campbell Park Improvement Project completed in 2022 and the John D. Morgan All -Inclusive Playground Project completed in 2021. Although many projects were successfully completed (or nearing completion) by the end of 2021, the improvements needed at Virginia Park and identified in the Virginia Park Improvements Project (Project) had yet to begin and the Project was one of the few projects remaining from the collective li st of all park improvements identified in the 2015 Parks and Maintenance Program Asset Management Plan.
In June 2022, the City Council approved the Virginia Park Improvements Project as part of the City’s Capital Improvement Plan (CIP) for Fiscal Years 2 023 – 2027. Funded through the City’s Park Dedication Fund, the Project was approved for a total of $320,000 in the CIP Budget, with funding allocated for use over Fiscal Years 24/25 and 25/26 ($70,000 and $250,000, respectively). The Project was intende d to enhance and expand the play amenities located at Virginia Park based on improvements identified in the 2015 Parks Asset Management Plan. The renovation was originally scheduled to occur in Fiscal Years 25 and 26, based on the condition of the equipme nt at that time. However, this timeline was subject to change pending changes in the park’s condition.
DISCUSSION
In November 2022, staff from the Public Works Maintenance Division discovered significant deterioration of Virginia P ark’s original w ooden playground structures, prompting staff to immediately tag the equipment for closure to restrict public access.
Upon further investigation, the advanced level of deterioration presented potential health and safety risks to the public, forcing staff t o completely remove the damaged play structures. Although the wooden play structure was removed, the park’s existing children’s swing set remained in good condition and open for public use. With these latest developments, staff is recommending advancing the Project to the current fiscal year.
Mindful of the loss of play value to the community, staff contacted Miracle Play Systems (Miracle), a company with a successful work history with the City and an ability to facilitate both the development and implem entation phases of play -based projects. Miracle has been timely and positive in completing projects with the City, and most recently, assisted the City with the completion of additional play improvements at Hyde Park. With a similar concept in mind, staf f was interested in developing an improvement plan for Virginia Park that expanded accessibility of amenities while enhancing the park’s overall appearance, all in a timely manner.
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Virginia Park Improvements Project Page 3 of 5
Subsequently, Miracle developed and presented various design concepts, eq uipment procurement strategies, and installation services for staff to consider (Attachment 2 – Proposed Virginia Park Design Layout and Visual Renderings of Equipment). In line with staff’s improvement goals, the proposed scope of work will incorporate t he installation of new ADA -compliant play structures with proper surface treatments and landscaping renovations to expand accessibility of amenities and enhance the park’s appearance. The new structures will be installed within the existing footprint of the current play area and offer play features similar to those of the recently removed equipment, as well as expanded play opportunities. The park’s existing children’s swing set will not be replaced at this time.
The proposed improvements, with an estima ted cost of $88,000, include the purchase and installation of the play structure, as well as the installation of a new ADA ramp. Miracle has also applied a discount to the equipment costs in recognition of the City’s membership with Sourcewell - a Coopera tive Purchasing Firm that operates as a facilitator between vendors/firms and the government agencies seeking particular goods and/or services.
Sourcewell provides recommendations based on their pre -qualification process of vendors that meets the same ind ustry standards used by public agencies for their own vetting and competitive procurement processes.
Furthermore, the City may utilize its membership with Sourcewell (certified through the purchase of project equipment from Miracle Play Systems) in plac e of the standard Request for Qualifications (RFQ) process under the provisions of the Campbell Municipal Code Section 3.20.30(6). Considering the time and resources spent on the RFQ process alone (i.e., drafting, reviewing, advertising, Council authoriza tion, etc.), it could take anywhere from three to six months before a contract is executed and services commence.
The City can use this time more efficiently by moving directly into the construction phase and providing a new play structure to the community in a timelier manner. Also, purchasing the equipment from Miracle through the Sourcewell Cooperative Agreement will result in a savings of $10,648 when compared to standard pricing.
Should the City Council approve this strategy, staff anticipates const ruction to begin in the spring of 2023. Staff also made outreach efforts to keep neighboring residents (and the general public) informed of the recent events taking place at Virginia Park. As such, residents within the park’s direct vicinity were mailed an informational letter regarding the conditions of the play structure that prompted its recent removal and the City’s plans to implement improvements upon an early commencement of the related CIP Project. The information was also printed on a sign for pu blic viewing on -site at Virginia Park.
Additionally, the letter and sign included staff’s intent to present the proposed improvement plans to the City’s Parks and Recreation Commission (PRC) at its meeting on February 1, 2023. With attendance open to all , staff’s presentation would provide all attendees with additional information about the Project’s scope of work and the opportunity to engage in discussions regarding the Project’s impact on the community.
During the February 1, PRC meeting, staff pres ented information that included renderings of the proposed design layout and new equipment features. Staff also highlighted how the proposed improvements would advance the City’s efforts to increase play value for the 5 Packet Pg. 33
Virginia Park Improvements Project Page 4 of 5
community while ensuring compliance w ith current safety and ADA standards. Upon completion of discussions, the PRC voted to approve a recommendation in support of staff’s proposed plans and early commencement of the Project.
Since the removal of the wooden play structure, the only avail able play amenities at Virginia Park are the existing children’s swing set and sand play area. Staff is aware that this has greatly reduced the park’s play value and will continue to do so until the Project’s implementation begins. However, before staff can move forward through the design and construction phases, authorization from City Council is required as the Project exceeds the $50,000 threshold. This is a critical step in the Project’s overall timeline considering the average wait time between manu facturing and delivery of such equipment is currently estimated at four to six months. As such, staff is requesting approval from City Council to accelerate commencement of the Project to the current fiscal year. Upon Council’s authorization, staff will also reflect this change in the proposed CIP which will be presented to Council later this spring. The previously budgeted $320,000 will revert to fund balance and will be available for other park improvement projects.
FISCAL IMPACT
Staff is requesting funding in the amount of $110,000 for this Project, to be allocated as follows:
Project Expenditures Amount
Site Preparation $5,000
Design Review/Inspection $4,000
Play Equipment Procurement/Installation $88,120
Other Site Improvements $12,880
Total $110,000
Sufficient funding is available in the City’s Park Dedication Fund. Should the Project commence this current fiscal year, staff will re -allocate the requested funding amount of $110,000 from the $320,000 of total funding previously allocated for the Project in FY25 and FY26. This will result in a savings of approximately $210,000 , which becomes available to fund other projects.
ALTERNATIVES
1. Begin the Virginia Park Improvements Project in Fiscal Years 2 4/25 and 2 5/26, as scheduled, per the a pproved CIP budget timeline and previous allocation s of funding.
2. Accelerate commencement of Virginia Park Improvements Project to Fiscal Years 23/24 and 24/25.
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Virginia Park Improvements Project Page 5 of 5
Prepared by:
Carina Shattuck, Administrative Analyst I
Reviewed by:
Todd Capurso, Director of Public Works
Approved by:
Angelique Gaeta, Assistant City
Manager
Attachment:
a. Resolution
b. Virginia Park Design and Visual Renderings
c. Budget Adjustment Form
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RESOLUTION NO.________________
A RESOLUTION OF THE COUNCIL OF THE CITY OF CAMPBELL TO AUTHORIZE
STAFF TO MOVE FORWARD WITH THE VIRGINIA PARK IMPROVEMENTS PROJECT (NO. 20-QQ) IN THE CURRENT FISCAL YEAR (FY23) AND APPROVE AN
AGREEMENT WITH MIRACLE PLAY SYSTEMS FOR EQUIPMENT AND
INSTALLATION SERVICES IN AN AMOUNT NOT TO EXCEED $88,120.14, BY WAY OF THE CITY’S COOPERATIVE PURCHASING AGREEMENT WITH SOURCEWELL, AND
DISPENSE OF BIDDING REQUIREMENTS AS SPECIFIED IN CAMPBELL MUNICIPAL CODE SECTION 3.20.030(6); AND AUTHORIZE THE FINANCE DIRECTOR TO EXECUTE A BUDGET ADJUSTMENT IN THE AMOUNT OF $110,000
WHEREAS, for over 20 years, the children’s play structure at Virginia Park has be en routinely maintained to ensure availability of its amenities to members of the Camp bell community; and
WHERAS, in 2014, the Public Works Maintenance Division performed a series of asset reviews and condition assessments on all City parks as part of staff ’s development of the ‘Parks and Maintenance Progr am Asset Management Plan ’ which was subsequently completed in 2015; and
WHEREAS, Virginia Park was included in staff’s assessment and categorized as a ‘moderate priority’ rehabilitation project based on the needs of similar -ranked parks throughout the City; and
WHEREAS, by the end of 2021, the Virginia Park Improvements Project was one of the few projects that had yet to begin from the collective list of park improvements identified in the 2015 Asset Management Plan; and
WHEREAS, in June 2022, the City Council approved the Virginia Park Imp rovements Project as part of the City’s Capital Improvement Plan (CIP) for Fiscal Years 2023 – 2027, allocating $320,000 of Park Dedication funds in the CIP Budget for use over Fiscal Years 25 and 26 ($70,000 and $250,000, respectively); and
WHEREAS, in November 20 22, staff from the Public Works Department discovered significant deterioration of the park’s original wooden playground structures that presented potential health and safety risks to the public and prompted staff’s complete removal of the impacted equipment; and
WHEREAS, with these latest developments, staff recommends advancing the Virginia Park Improvements Project to begin this current Fiscal Year (FY 23); and WHEREAS, staff has pursued the development of a timely improvement plan for Vir ginia Park that expands accessibility of amenities that meet all current safety and ADA standards, while enhancing the park’s overall appearance; and WHEREAS, Miracle Play Systems , due to their successful p revious work history with the City, has developed a design concept that includes equipment procurement and installation services to improve and expand play opportunities at Virginia Park; and WHEREAS, Miracle Play Systems would also apply a dis count to equipment costs on behalf of the City’s membership in the Sourcewell Purchasing Cooperative Agreement; and
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Attachment: Resolution (Virginia Park Improvements Project) WHEREAS, the City may utilize its membership wi th Sourcewell in place of the standard Request for Qualifications (RFQ) process under the provisions of the Campbell Municipal Code Section 3.20.30(6); and
WHEREAS, staff presented the proposed plan to the Parks and Recreation Commission at the February 1, 2023, meeting and the Commission voted to approve a recommendation in support of staff’s propos ed plans and early commencement of the Virginia Park Improvements Project; and
WHEREAS, City Council authorization is required as the Project exceeds the $50,000 threshold; and
WHEREAS, staff has estimated a budget of $110,000 for all project-related expenditures; and
WHEREAS, funds previously allocated for the Virgin ia Park Project in future years will revert to the City’s Park Dedication Fund for use on other park improvement projects.
NOW, THEREFORE, BE IT RESOLVED that the Council of the City of Campbell hereby authorizes staff’s commencement of the Virginia Park Improvements Project (No. 20-QQ) this current fiscal year (FY23) and approves an agreement with Miracle Play Systems, in an amount not to exceed $88,120.14 , to provide Equipment and Installation Services, through the City’s participation in a Cooperative Services Agreement with Soucewell (a Cooperative Purchasing Firm) , and dispenses with bidding requirements as author ized in Campbell Municipal Code Section 3.20.030(6) for professional services intended to provide information for staff’s use during project development and routine contractual services during subsequent project implementation.
BE IT FURTHER RESOLVED that the City Council hereby authorizes the Finance Director to execute a budget adjustment in the amount of $110,000 for all project-related costs, with changes to be reflected in the proposed CIP Budget scheduled for presentation to Council in spring 2023.
PASSED AND ADOPTED this 21st day of February, 2023 by the following roll call vote:
AYES: Council Members:
NOES: Council Members:
ABSENT: Council Members:
APPROVED:
Anne Bybee, Mayor
ATTEST:
Andrea Sanders, City Clerk
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Attachment: Resolution (Virginia Park Improvements Project)
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Attachment: Virginia Park Design and Visual Renderings (Virginia Park Improvements Project)
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Attachment: Virginia Park Design and Visual Renderings (Virginia Park Improvements Project) Beige
Brown-Stone Azure
Blue
Forest
Green
MIRACLE PLAYSYSTEMS. DESIGNING PLAY
Creating Fun Play Environments to Enrich Communities
MIRACLE PLAYSYSTEMS. DESIGNING PLAY
Creating Fun Play Environments to Enrich Communities
Colors Used In Rendering: *Colors shown in rendering are for illustrative purposes only. Actual color and pattern may vary slightly.
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Attachment: Virginia Park Design and Visual Renderings (Virginia Park Improvements Project) MIRACLE PLAYSYSTEMS. DESIGNING PLAY
Creating Fun Play Environments to Enrich Communities
MIRACLE PLAYSYSTEMS. DESIGNING PLAY
Creating Fun Play Environments to Enrich Communities
*Colors shown in rendering are for illustrative purposes only. Actual color and pattern may vary slightly.
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Attachment: Virginia Park Design and Visual Renderings (Virginia Park Improvements Project) MIRACLE PLAYSYSTEMS. DESIGNING PLAY
Creating Fun Play Environments to Enrich Communities
MIRACLE PLAYSYSTEMS. DESIGNING PLAY
Creating Fun Play Environments to Enrich Communities
*Colors shown in rendering are for illustrative purposes only. Actual color and pattern may vary slightly.
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Attachment: Virginia Park Design and Visual Renderings (Virginia Park Improvements Project) MIRACLE PLAYSYSTEMS. DESIGNING PLAY
Creating Fun Play Environments to Enrich Communities
MIRACLE PLAYSYSTEMS. DESIGNING PLAY
Creating Fun Play Environments to Enrich Communities
*Colors shown in rendering are for illustrative purposes only. Actual color and pattern may vary slightly.
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Attachment: Virginia Park Design and Visual Renderings (Virginia Park Improvements Project) MIRACLE PLAYSYSTEMS. DESIGNING PLAY
Creating Fun Play Environments to Enrich Communities
MIRACLE PLAYSYSTEMS. DESIGNING PLAY
Creating Fun Play Environments to Enrich Communities
*Colors shown in rendering are for illustrative purposes only. Actual color and pattern may vary slightly.
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Attachment: Virginia Park Design and Visual Renderings (Virginia Park Improvements Project) City of Campbell
Request for Budget Adjustments
Department/Program Division Date Request No.
February 21, 2023 BA-16
Budget to be Reduced
Fund/Program Account Number Description Amount
Budget to be Increased
Fund/Program Account Number Description Amount
EXPENDITURES
435.20QQ 7883 Virginia Park Improvements 110,000.00
295.990 9999 Capital Transfers Out 110,000.00
EXPENDITURES
435.990 6999 Capital Transfers In 110,000.00
REASON FOR REQUEST - BE SPECIFIC:
Public Works
Will Fuentes Todd Capurso Brian Loventhal
To appopriate $110,000 in Park Dedication Funds for the Virginia Park Improvement Project (20-QQ). This project was initially budgeted for FY2025 and FY2026 for a total of $320,000. Advancing this project to FY2023 will realize a net $210,000 in savings. 20-QQ Virginia Park Improvements
Finance Director Public Works Director City Manager
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Attachment: Budget Adjustment Form (Virginia Park Improvements Project)
City
Council
Report
TITLE: Commending James Redmond for Over 25 Years of Service to the City of Campbell (Resolution/Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt a Resolution commending James Redmond for his 25 years of Service to the City of Campbell.
BACKGROUND
Recreation Specialist James Redmond from the Aquatics division retired from the City of Campbell on February 13, 2023. At this time, it would be appropri ate for the City Council to adopt a Resolution commending James Redmond for outstanding service and commitment to the City of Campbell.
DISCUSSION
James Redmond began his career with the City of Campbell on September 22, 1997, as a temporary fitness instr uctor. In 2001, James began working with the Campbell Wave Swim Team as an Assistant Swim Coach until he was hired permanently on August 10, 2014 as the Recreation Specialist. During his time with the City, he has demonstrated a commitment to providing excellent customer service and providing a safe place to swim for thousands of people throughout the Campbell Community. James has led the Junior Lifeguards and the Lifeguard Academy that has trained and certified countless lifeguards for the Campbell Communi ty Center. There have been multiple incidents where lifeguards certified by James have performed life saving skills while on duty.
James has been a critical member of the Recreation and Community Services Department overseeing the daily operations of the pool. He has built strong relationships with our patrons and takes pride in serving the community. His fun sense of humor and can do attitude will truly be missed. It is with gratitude that staff recommends that the City Council adopt a Resolution commending James Redmond for his outstanding service to the City of Campbell.
FISCAL IMPACT
There is not fiscal impact associated with this commendation.
Item: 6
Category: CONSENT CALENDAR
Meeting Date: February 21, 2023
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Commending James Redmond for Over 25 Years of Service to the City of Campbell Page 2 of 2 Prepared by:
Natasha Bissell, Recreation and
Community Services Director
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Resolution - James Redmond
6 Packet Pg. 47
RESOLUTION NO. _____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL COMMENDING JAMES REDMOND ON HIS 25 YEARS OF SERVICE TO THE CITY OF
CAMPBELL
WHEREAS, James Redmond was hired as a temporary fitness instructor for the City of Campbell in September 1997; and
WHEREAS, James later became the Assistant Swim Coach for the Campbell Wave Swim Team; and
WHEREAS, James was hired permanently with the City of Cam pbell as the Recreation Specialist in the Aquatics Division in August of 2014; and WHEREAS, James has committed to providing excellent customer service and training and certifying countless lifeguards during his tenure; and WHEREAS, training provided by James has resulted in life saving efforts by lifeguard staff while on duty which have saved lives; and WHEREAS, James is a critical member of the Recreation and Community Services Department with his role of supervising the daily operations of the pool; and WHEREAS, James has built strong relationships within the Campbell Community and has been a dedicated public servant.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell recognizes and commends James Redmond on his retirement from the City of Campbell after 25 years of service.
AYES: Councilmembers
NOES: Councilmembers
ABSENT: Councilmembers
APPROVED:
_____________________
Anne Bybee, Mayor
ATTEST:
_____________________
Andrea Sanders, City Clerk
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Attachment: Resolution - James Redmond (Commending James Redmond for Over 25 Years of Service to the City of Campbell) City
Council
Report
TITLE: Fiscal Year 2023 Mid-Year Financial Update and Budget Adjustments (Resolution/Roll Call Vote)
RECOMMENDED ACTION
Staff recommends that the City Council accep t the Fiscal Year 2023 Mid -Year Financial Update Report and adopt a Resolution authorizing the Fiscal Year 2023 Mid -Year Budget Adjustments.
BACKGROUND
The City’s Financial policies require staff to provide the City Council with a mid -year financial status update report each fiscal year. The report discusses how the City’s year- to-date actual results are progressing with respect to their prior -year actual and current- year budgeted revenues and expenditures, including a discussion of recommended budgetary adjustments, if any. The current mid -year report before Council is for Fiscal Year (FY) 2023 and the basis for year -end estimates is current trends through December 31, 2022, Executive Team analysis, and discussions with the City’s property and sales tax consultants. The main focus of this report will be the General Fund (101), which supports most of the City’s ongoing and essential operations, but recommended budgetary adjustments, where necessary, may also be included for other funds as well.
DISCUSSION
Attachment A of this report provides Council with a high -level overview of the items described above and incorporates mid -year budget corrections and requests so that their full impact can be seen if approved by Council. Proposed mid -year budget corrections and requests are further detailed in Attachment B and Attachment C .
Furthermore, a full reconciliation of the FY 2023 Adopted Budget to the FY 2023 Amended Budget is shown in Attachment D. This attachment provides a summary of Council approved bu dgetary adjustments since July 1, 2022, as well as any encumbrance and Capital Improvement Program (CIP) carryovers from FY 2022 that are still expected to be expended.
General Fund Overview
As a whole, projected year -end General Fund revenues exceed pro jected year -end General Fund expenditures by approximately $543,000 and the General Fund is Item: 7
Category: NEW BUSINESS
Meeting Date: February 21, 2023
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FY 2023 Mid-Year Update and Budget Adjustments Page 2 of 19 expected to be fully balanced in FY 2023 ; not accounting for any other unknown and unexpected budget adjustments that might be needed between now and the end of FY 2023. D espite the challenges of inflation, rising interest rates, and geo -political forces, the economy is still stable and performing well; albeit with slowing growth expected in the near future . This performance and relative current stability is reflected in favorable FY 2023 year-to-date revenue numbers for the City, which will be explained in more detail below:
• Revenues – In summary, a s of December 31, 2022, General Fund revenues equaled approximately $23.90 million; an increase of $4.85 million or 25.49% when compared to the same time period last fiscal year, which showed approximately $19.04 million in year -to-date revenues. And when compared to budgetary estimates for FY 202 3, revenues are at 37. 55%. Last fiscal year at the same time period, General Fund revenues equaled 33.24% of year -end actual revenues. After extensive analysis, staff now expects year -end General Fund revenues for FY 2023 to equal approximately $66.66 million; an increase of $3.01 million from the budgetary estimates for FY 2023. The following will discuss key factors leading to the revision of year-end revenue estimates:
o Property Tax – FY 2023 Budget Estimate of $20,654,000 vs. Revised Year-End Projection of $20,526,000 (Decrease of $128,400) – The City relies on property tax es timates from both a consultant as well as the Santa Clara County Office of the Assessor and Controller -Treasurer Department. The latter two County agencies provide quarterly projections and recently provided an update on February 10. While most property t ax categories are tracking very close to initial budgetary estimates for FY 2023, the County expects the City to receive $316,500 less in excess Educational Revenue Augmentation Funds (ERAF) than originally expected. The calculation methodology for these funds has been a source of contention between the State and the County for the past several years and remains a source of contention. Staff will continue to keep the Council updated should a significant portion of Campbell ERAF funds come into jeopardy. Nevertheless, the projected decrease in ERAF funds for FY 2023 is almost fully offset by a projected $244,900 increase in secured property taxes; demonstrating the relative overall strength in core property taxes despite the slowdown in the housing market. o Sales Tax – FY 2023 Budget Estimate of $15,903,012 vs. Revised Year - End Projection of $18,221,459 (increase of $2,318,447) – The City relies on sales tax estimates from a qualified consultant and recently received revised FY 2023 year-end estimates on February 8. Based on very strong year-to-date results thus far as well as the recovery of approximately $800,000 in mis -allocated prior period sales tax revenue from one of the City’s largest sales tax generators, the consultants project a significant increase in year -end sales tax estimates. Despite signs of economic weakness and slowing growth, Campbell saw significant sales tax growth 7 Packet Pg. 50
FY 2023 Mid-Year Update and Budget Adjustments Page 3 of 19 on a year -over-year basis in the Restaurants and Hotels, Building and Construction, Fuel and Services Stations, Auto and Transportation, and Food and Drugs sectors. Some of this increase is due to inflation and higher overall prices, but it is also fueled by continued consumer demand.
Nevertheless, sales tax growth is expected to slow and remain flat in FY 2024 and will b e without the one -time $800,000 adjustment for Campbell mentioned previously.
o Other Taxes – FY 2023 Budget Estimate of $8,622,400 vs. Revised Year- End Projection of $8,602,100 (decrease of $20,300). This revenue category consists of Franchise Taxes, Construction Tax, Business License Tax, Real Property Tax Transfers, and Transient Occupancy Tax (TOT).
Most of these categories are expected to meet budgetary estimates in FY 2023, with TOT showing a continued rebound from the pandemic and now expected to exc eed budgetary estimates by $4 50,000. Nevertheless, due to rising interest rates, home sale activity and prices have declined over the last several months and thus, staff has lowered its estimates for Real Property Transfer Tax by $387,500. In addition, wh ile TOT revenue has rebounded significantly since it’s pandemic low, it is still projected to be nearly $1 million below its pre -pandemic levels in FY 2023. Year -to-date TOT revenue through December 2022 has been strong at $1.85 million, but in making its revised year-end projection of $3.65 million, staff factored in a potential slowdown in business related travel in the second half of the fiscal year. Prior to the pandemic, TOT revenue equaled approximately $4.7 million for the City annually. At its pandemic low it was $1.6 million. o Licenses and Permits - FY 2023 Budget Estimate of $3,894,820 vs.
Revised Year-End Projection of $4,173,500 (increase of $278,680). This category consists primarily of Community Development Construction Permit Fees and Plan Check Fees. Based on year -to-date activity as well as known and planned developments throughout the remainder of the fiscal year, staff expects significant increases in this area in FY 2023.
Nevertheless, due to the recent slowdown in the housing market, this category may also show slower growth in the near-term.
o Fines and Forfeitures - FY 2023 Budget Estimate of $105,000 vs.
Revised Year-End Projection of $107,500 (increase of $2,500). This is a relatively small revenue category for the City, but staff has planned for increased code enforcement activity in FY 2023, which could raise revenue estimates by $40,000. However, this is projected to be largely offset by a continued decrease in Vehicle Code Fine revenue of $37,500.
Although traffic court has r esumed in Santa Clara County, following the shutdown during the pandemic, the Santa Clara County Superior Court ordered all traffic citations issued prior to January 1, 2021 be dismissed, resulting in lost revenue.
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FY 2023 Mid-Year Update and Budget Adjustments Page 4 of 19 o Investment Income - FY 2023 Budget Estim ate of $310,900 vs. Revised Year-End Projection of $610,900 (increase of $300,000). During the pandemic, the City’s investment return in fixed income secu rities such as Federal Agency Notes and the Local Agency Investment Fund (LAIF) dropped precipitously to levels of 1% of below. This resulted in a significant decline in actual and market value investment returns.
However, largely buoyed by the Federal Reserve raising the Federal Funds Rate by nearly 450 basis points since early 2022, the investment rates for allowable City investments has also increase significantly. Staff has taken advantage of this through its investment purchases over the past year and as a result, expects year -end investment income to greatly exceed budgetary estimates in FY 2023.
o Intergovernmental Revenue - FY 2023 Budget Estimate of $1,074,100 vs. Revised Year-End Projection of $1,075,700 (increase of $1,600). This revenue category largely consists of smaller limited restriction federal, state, and county grants, state mandated cost reimbursements, contractual arson investigator payments from the Santa Clara County Fire Department. While year-end projections are expected to slightly exceed budgetary estimates in FY 2023 based on year -to-date receipts, Intergovernmental Revenue i s expected to meet budgetary estimates across most associated revenue accounts in this category. o Charges for Service - FY 2023 Budget Estimate of $4,880,200 vs.
Revised Year-End Projection of $4,980,430 (increase of $100,230). This category consists of f ee based programs, camps, and classes in the Recreation and Community Services (RCS) Department as well as service fees in the Community Development, Public Works, and Police Departments. Due to increased year-to-date activity and public demand coming out of the pandemic, RCS fee based year -end revenues are expected to exceed budgetary estimates by approximately $190,000 in FY 2023. Public Works related year -end service fees are also expected to exceed budgetary estimates by approximately $60,000 in FY 20 23.
However, these two increases are slightly offset by a projected $151,000 decrease in year -end Zoning and General Plan Maintenance fees when compared to budgetary estimates in FY 2023.
o Leases and Rentals - FY 2023 Budget Estimate of $2,933,200 vs.
Revised Year-End Projection of $2,965,800 (increase of $32,600). While rentals at the Heritage Theatre have been slow this fiscal year and are expected to miss budgetary estimates by $144,000 in FY 2023, they are more than offset by better than expected leas e and rental activity at the Campbell Community Center . The latter is expected to exceed budgetary estimates by approximately $175,000 in FY 2023.
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FY 2023 Mid-Year Update and Budget Adjustments Page 5 of 19 o Miscellaneous Revenue - FY 2023 Budget Estimate of $134,800 vs.
Revised Year-End Projection of $168,346 (increase of $33,546). This is a relatively small revenue category for the City consisting of Donations, In - Lieu fees, and other miscellaneous and sporadic revenue sources. In FY 2023, the City received a previously unexpected Youth Scholarship donation of $ 10,000 and is also seeing higher than expected in -lieu fees and other miscellaneous fees which are expected to exceed budgetary estimates by approximately $14,000 in FY 2023.
o OFS - Operating Transfers In - FY 2023 Budget Estimate of $3,152,083 vs. Revise d Year -End Projection of $3,238,579 (increase of $86,496).
There are various repairs and improvements necessary in FY 2023 to keep the Heritage Theatre safe and in good operational order. These costs though can be funded though by a transfer from The Her itage Theatre Preservation Reserve in FY 2023.
On the other side of the ledger, expenditures are holding fairly close to FY 2023 amended appropriations, but there is also the need for several mid -year adjustments to account for unexpected expenditures, emergency repairs, increased fee based service demand, and inflation. These will be detailed in the subsequent sections as well as in Attachment B and Attachment C . The expenditure summary below as well as Attachment A again reflects the inclusion of req uested mid -year appropriations adjustments so that their full impact can be seen if approved by Council:
• Expenditures - As of December 31, 2022, General Fund expenditures equaled approximately $30.60 million ; an increase of $3.41 million or 12.54% when compared to the same time period last fiscal year, which showed approximately $27.19 million in year -to-date expenditures. And as Attachment A shows, staff now expects year -end General Fund expenditures for FY 2023 to equal approximately $66.12 million; an increase of $1.77 million from the budgetary appropriations for FY 2023 . This is again primarily due to unexpected expenditures, emergency repairs, increased fee based service demand, and inflation. Where necessary, mid - year appropriations adjustments a re being requested to account for these cost increases. Nevertheless, despite increased costs, revenues detailed previously are also expected to increase at rate necessary to fully absorb the expenditures; resulting in a fully balanced budget. As a note, increased costs to date also reflect recently negotiated salary and benefit increases for all bargaining groups , which were already factored into current FY 2023 appropriations and require no further budgetary adjustments.
Requested Mid-Year Budget Adjustments (General Fund)
As previously stated, staff requests budget appropriation increases to General Fund expenditure accounts totaling $1.77 million in FY 2023. All are either offset by expected revenues increases as detailed previously or proposed bu dget 7 Packet Pg. 53
FY 2023 Mid-Year Update and Budget Adjustments Page 6 of 19 shifts/reductions from other accounts that are expected to have savings in FY 2023.
Table 1 below provides a summary of staff recommendations followed by more detailed descriptions immediately after the table as to why these items are being requested during the FY 2023 mid-year update:
Table 1 – FY 2023 Requested Mid -Year Budget Adjustments to Appropriations (General Fund Only)
DEPARTMENT / DESCRIPTION AMOUNT
Citywide
Increased sales tax audit fees due to significant sales tax recovery offset by revenue
$173,000
Decrease to actual general liability and property insurance premium costs
($25,657)
Increased Other Post-Employment Benefits (OPEB) Actuarially Required Contribution (ARC)
$107,978
Higher than expected utility costs citywide $163,000
Correction to ESCO Loan Payments $80,000
City Manager’s Office
Vacancy savings – Administrative Analyst ($60,000)
Temporary administrative support in Human Resources $65,000 Council and Executive Team Strategic Collaboration facilitation $24,900 Transfer to IT Fund to support higher than expected equipment and software licensing costs
93,780
City Clerk’s Office
Vacancy savings – Deputy City Clerk ($108,000)
Temporary administrative support in City Clerk’s Office $52,500 Recreation & Community Services
Increased temporary staffing at Adult Center office offset by revenue
$8,000
Increased training for new staff and attendance at state conference
$3,000
Decreased need for Senior Nutrition meals supported by City funding
($20,000)
Increased Adult Services class offerings offset by revenue $10,000 Reduced Adult Services trip offerings ($18,000)
Vacancy savings – Building Attendant at CCC ($21,400)
Lower than expected security costs at CCC ($13,800)
Higher than expected credit card fees at CCC offset by
increased program activity and revenue
$44,000
Shifting of credit card fees for Sports, Aquatics, and Fitness to CCC
($16,000)
Shifting of credit card fees for Preschool, Day Camps, and Enrichment Classes to CCC
($16,000)
Additional Summer Concert Series expenses paid in FY 2023 $3,200 Increased expenses for Historical Museum exhibits $5,300 7 Packet Pg. 54
FY 2023 Mid-Year Update and Budget Adjustments Page 7 of 19
DEPARTMENT / DESCRIPTION AMOUNT
Decreased reimbursable labor costs for Heritage Theatre rentals ($44,445) Lower than expected actual annual insurance premiums ($10,016) Building repairs/improvements at Heritage Theatre offset by transfer in from Heritage Theatre Preservation Reserve
$86,496
Increased supply and material costs for Sports, Aquatics, and Fitness offset by revenue
$64,500
Increased temporary staffing expenses for Youth Basketball and Drop in Sports offset by revenue
$12,900
Increased costs for Youth Basketball League uniforms and supplies offset by revenue
$10,500
Reduction in temporary staffing for Preschool ($29,076) Increased Day Camp expenses offset by revenue $77,500
Higher than expected utility costs at CCC $297,364
Higher than expected utility costs at the Historical Museum $11,008 Higher than expected utility costs at the Heritage Theatre $9,270 Finance
Vacancy savings – Office Assistant ($90,900)
Temporary Office Assistant support $66,000
Upgrade Vacant Office Assistant to Accounting Clerk II effective April 1, 2023
$2,500
Ad Hoc support by former permanent Payroll Accounting
Technician
$10,000
GASB 75 Actuarial Study $12,400
Community Development
Contract Plan Check support offset by revenue $200,000
Contract Permit Technician support offset by revenue $10,000 Police Department
Vacancy savings – various positions in PD Administration ($25,000) Contracted online advertising recruitment management services $25,000 Vacancy savings – various positions in PD Special Enforcement ($52,708) New 3D laser scanner to document major traffic collision scenes and major crime scenes
$52,708
Public Works
Vacancy savings – temporary staffing in Public Works
Administration
($10,000)
Unplanned, but needed initial Structural Study of Ainsley House $10,000 Vacancy savings – Building Maintenance permanent staff ($35,000) Vacancy savings – Building Maintenance temporary staff ($33,000) Unplanned, but needed HVAC control replacement at CCC
Building Q
$14,000
Corp Yard Admin Building emergency roof repair $19,600
Unplanned, but needed auto-door replacement at CCC Building M Room 50
$23,000
Unplanned, but needed replacement of 3 HVAC units CCC K Wing $55,000 7 Packet Pg. 55
FY 2023 Mid-Year Update and Budget Adjustments Page 8 of 19
DEPARTMENT / DESCRIPTION AMOUNT
Unplanned, but needed re-piping existing lines to new heat pumps at CCC Building B
$10,000
Unplanned, but needed air handler repairs at City Hall $13,000 Emergency repairs of 2nd Street Garage elevator $27,800 Emergency replacement of CCC pool boiler replacement $62,000 Unplanned, but needed replacement of failing HVAC units (3) at CCC Building C
$65,000
Transfer to Increase CIPR Funding for CCC C-wing Breezeway Re-Roofing
$9,000
Transfer to Fleet Fund to support outright purchase of five (5) new Police Ford Interceptor Utility Vehicles
$307,400
Total Requested Budget Adjustments to Appropriations $1,768,602 Citywide
• Increased sales tax audit fees +$173,000 – As mentioned in the revenue section of this report, the City’s sales tax auditors were able to discover and correct a misallocation of sales tax revenue by one of the City’s largest sales tax generators to another municipality in California. This resulted in a one -time back sales tax payment to the City of approximately $800,000 in FY 2023 and will also result in sales tax revenue of approximately $500,000 to $600,000 annually going forward. Per contractual agreement approved by City Council ( Resolution # 12729), the City’s sales tax auditors receive 15% of all sales tax errors corrected as well as 15% of ongoing sales tax revenue from the date of correction for 8 quarters. In FY 2023, the City is expected to pay $173,000 for this case. And in future years, the City is expected to pay up to $90,000 for this sales tax recovery, which will be programmed into the FY 2024 Proposed Budget. However, the recovery fee for this case will end after the second quarter of calendar year 2024 (June 30, 2024) and is again offset by ongoing sales tax revenue from this case. • Decrease to general liability and property insurance premium costs ($25,657) – The City is self -insured for general liability and property claims , but purchases excess insurance through the Pooled Liability Assurance Network Joint Powers Autho rity (PLAN JPA). Initial premium costs for FY 2023 were based off of preliminary budget numbers presented to member agencies by PLAN JPA in March 2022. This budget was finalized in late June 2022, but after the City had adopted its FY 2023 budget. As su ch, while insurance costs have increased sharply the past few years, final premium costs for FY 2023 came in slightly less than originally projected by PLAN JPA.
• Increased Other Post-Employment Benefits (OPEB) Actuarially Required Contribution (ARC) +$107,978 – The City pays for certain Other Post - Employment Benefits (OPEB) for its retired employees such as retiree healthcare up to prescribed limits . The City’s policy is to fund these obligations annually at the level of the actuarially required contribut ion (ARC). Additionally, per government accounting standards, an actuarial study should be done every two 7 Packet Pg. 56
FY 2023 Mid-Year Update and Budget Adjustments Page 9 of 19 years to determine the current level of funding necessary to meet the ARC. As such, the City recently engaged with an actuarial firm to perform its latest study.
As a result of that study and several factors, the ARC rose over what was initially expected for FY 2023. However, to ensure that the OPEB plan is financially stable, all obligations are met to the City’s retirees, and that City policy is followed, staff recommends increasing the budgetary appropriation for this item. • Higher than expected utility costs citywide +$163,000 – Despite efforts at conservation, the City is seeing higher than expected utility costs due to significant increases in rates by utility companies. This increase is to account for higher than expected utility costs at City Hall, the Corp Yard, City garages, and all other non-Campbell Community Center (CCC) locations. • Correction to ESCO Loan Payments +$80,000 – To improve energy efficiency, the City upgraded lighting, electrical, and HVAC systems citywide; funded by loan agreements from the State and PGE and offset by anticipated utility savings.
While utility savings have not yet fully materialized due to significant incr eases in utility rates referenced in the previous adjustment, absent the energy efficiency project, utility costs would have been much higher in FY 2023 and going forward.
This correction is to account for an error in the loan payment amounts to the State and PGE budgeted for FY 2023. They were budgeted too low.
City Manager’s Office
• Vacancy savings – Administrative Analyst ($60,000) – An Administrative Analyst position in the City Manager’s Office was vacant for approximately 3 months; resulting in vacancy savings that can be shifted towards other costs. • Temporary administrative support in Human Resources +$65,000 – Due to a high level of recruitment efforts to ramp up staffing after the pandemic as well as significant filing, copy, and other needs, the Human Resources Division has had temporary need for administrative support in FY 2023. This support has increased capacity in the Division and allowed permanent Human Res ources staff to focus on recruitments, onboarding, negotiations, and other core duties. • Council and Executive Team Strategic Collaboration facilitation +$24,900 – To assist in enhancing communication, collaboration, policy setting, and strategic planning, the City engaged outside consultant s to facilitate several meetings between the Cit y Council, City Manager, and Executive Team. These costs though were not included in the FY 2023 Adopted Budget. • Transfer to IT Fund to support higher than expected equipment and software licensing costs +$93,780 – The IT fund (#647) is an internal servi ce fund and is mainly supported by user charges to other City departments. The fund was expected to be fully balanced in FY 2023. However, the City has realized greater than expected costs for staff support of City Council and commission meetings, desktop computer replacements, necessary IT employee 7 Packet Pg. 57
FY 2023 Mid-Year Update and Budget Adjustments Page 10 of 19 training, Internet connection fees, software licensing, and Water Tower lighting maintenance. This adjustment accounts for those unexpected items in the IT fund and transfers a corresponding amount from the General Fund to support the increased costs.
City Clerk’s Office
• Vacancy savings – Deputy City Clerk ($108,000) – A Deputy City Clerk position is expected to be vacant for approximately 9 months; resulting in vacancy savings that can be shifted towards other costs until filled permanently. • Temporary administrative support in City Clerk’s Office +$52,500 – Due to the vacancy in the Deputy City Clerk position, the City Clerk has had the need for temporary administrative support in FY 2023. This support is ex pected to be needed only through the time that the Deputy City Clerk position is filled permanently.
Recreation & Community Services (RCS)
• Increased temporary staffing at Adult Center office offset by revenue +$8,000 – Due to increase demand for services coming out of the pandemic, RCS requests i ncreasing temporary staffing to cover the Adult Center office 20 hours per week . Added temporary staffing costs are expected to be covered by increases in fee based programs in RCS.
• Increased training for new staff and attendance at state conference +$3,000 – Requested i ncrease so all that new staff can attend trainings and to send 5 staff members to the annual California Park & Recreation Society (CPRS) conference.
• Decreased need for Senior Nutrition meals suppor ted by City funding ($20,000) – Based on actual meals served to date , there is unlikely to be the need/use th is City funding of the Senior Nutrition program; with a substantial portion supported by Santa Clara County funding.
• Increased Adult Services clas s offerings offset by revenue +$10,000 – Due to increase demand for services coming out of the pandemic, RCS requests increasing temporary staffing to operate Adult Services programs (outside of office support referenced previously) . Added temporary staffi ng costs are expected to be covered by increases in fee based Adult Services programs. • Reduced Adult trip offerings ($18,000) – There are reduced trip offerings from the original FY 2023 Adopted Budget and thus reduced actual costs. • Vacancy savings – Building Attendant ($21,400) – RCS have not been able to successfully recruit building attendant s and have been operating with minimum staffing levels in FY 2023. This will result in vacancy savings in FY 2023. 7 Packet Pg. 58
FY 2023 Mid-Year Update and Budget Adjustments Page 11 of 19 • Lower than expected security costs at CCC ($13,800) – RCS has had difficulty securing a security company for needed rentals and Campbell PD has assisted in the meantime. Thus, the contractual services budget can be reduced with the goal of entering into a contract with new security company in March 2023.
• Higher than expected credit card fees at CCC offset by increased program activity and revenue +$44,000 – RCS credit card fees are being charged to the Campbell Community Center (CCC) onl y. Thus, r eductions proposed in other divisions to offset a porti on of the increase. High volume of credit card sales for all recreation programs is also indicative of high program demand and an increase in fee based program revenue.
• Shifting of credit card fees for Sports, Aquatics, and Fitness to CCC ($16,000) – Relates to item above.
• Shifting of credit card fees for Preschool, Day camps, and Enrichment Classes to CCC ($16,000) – Relates to item above.
• Additional Summer Concert Series expenses paid in FY 2023 +$3,200 – These are additional costs for portable toilets, storage rental, and signage for the 2022 Summer Concert Series paid in FY 2023.
• Increased expenses for Historical Museum exhibits +$5,300 – Increased expenses for exhibits to reopen Historical Museum after the pandemic as well as program supplies for education program restarting in March 2023. • Decreased reimbursable labor costs for Heritage Theatre rentals ($44,445) – There are reduced actual expenditures for reimbursable labor due to decrease in projected rentals at the Heritage Theatre.
• Lower than ex pected annual insurance premiums ($10,016) – Based on actual RCS insurance premiums already paid in full for FY 2023, the budget for this item can be reduced.
• Building repairs/improvements at Heritage Theatre offset by transfer in from Heritage Theatre Pr eservation Reserve +$86,496 – There are various repairs and improvements necessary in FY 2023 to keep the Heritage Theatre safe and in good operational order . These costs though can be funded though by a transfer from The Heritage Theatre Preservation Reserve in FY 2023. • Increased supply and material costs for Sports, Aquatics, and Fitness offset by revenue +$64,500 – There has been i ncreased enrollment and class offerings for Sports, Aquatics, and Fitness. The added expense of offering these expanded programs is offset by a $115,000 increase in fee based revenue. 7 Packet Pg. 59
FY 2023 Mid-Year Update and Budget Adjustments Page 12 of 19 • Increased temporary staffing expenses for Youth Basketball and Drop in Sports offset by revenue +$12,900 – Expenses for the Youth Basketball program and Drop In Sports programs were accidentall y omitted from the FY 2023 Adopted Budget. Expenses for these programs are offset by corresponding fee based revenue.
• Increased costs for youth basketball league uniforms and supplies offset by revenue +$10,500 – These are e xpenses for the Youth Basketball uniforms and supplies which are offset by corresponding fee based revenue. • Reduction in temporary staffing for Preschool ($29,076) – There was a reduction in temporary personnel due to one less preschool class offered ; thereby resulting in lower expected costs in FY 2023.
• Increased Day Camp expenses offset by revenue +$77,500 – There has been increased Day Camp enrollment and class offerings ; resulting in higher expense that is also offset by a $136,000 increase in fee based program revenue. • Higher than expected utility costs at CCC +$297,364 – Similar to increased utility costs at other City buildings, the City is also seeing higher than expected utility costs at the Campbell Community Center (CCC) due to significant increases in rates by utility companies.
• Higher than expected utility costs at the Historical Museum +$11,008 – Similar to increased utility costs at the CCC and other City buildings, the City is also seeing higher than expected utility costs at the Historical Museum due to significant increases in rates by utility companies.
• Higher than expected utility costs at the Heritage Theatre +$9,270 – Similar to increased utility costs at the CCC, Historical Museum, and other City buildings, the City is also seeing higher than expected utilit y costs at the Heritage Theatre due to significant increases in rates by utility companies.
Finance
• Vacancy savings – Office Assistant ($90,900) – An Office Assist position working in business licensing and at the Finance public cashiering counter is expected to be vacant for approximately 9 months; resulting in vacancy savings that can be shifted towards other costs until filled permanently. • Temporary Office Assistant support +$66,000 – Due to the vacancy in the Office Assistant position, Finance has h ad the need for to backfill this position with temporary staffing in FY 2023. This support is expected to be needed only through the time that the permanent position is filled permanently. • Upgrade Vacant Office Assistant to Accounting Clerk II +$2,500 – To improve operational effectiveness and efficiency and to allow for more complex 7 Packet Pg. 60
FY 2023 Mid-Year Update and Budget Adjustments Page 13 of 19 work, cross -training, rotational assignments, succession planning, and growth, Finance requests an upgrade in its vacant Office Assistant position to Accounting Clerk II and potentially hir ing from a recent recruitment and eligibility list for Accounting Clerk II expiring July 2023. This is part of Finance’s Succession Plan and something Finance intended to include within its FY 2024 Proposed Budget request, but the current v acancy provides a n opportunity to make the upgrade now in order to utilize the eligibility list , without having to spend the time and resources on opening up a new recruitment. The upgrade , if approved, would also accomplish the following goals and be a recurring incremental annual cost of approximately $10,000. The incremental cost for FY 2023 is for 3 months only:
o Account for a greater role in business license systems implementations and more complex activities such as business license audit and discovery o Align all three (3) desks at the Finance public counter; thereby allowing for proper cross training and a two -year rotational assignment between all three desks (A ccounts Payable , A ccounts Receivable , and Business Licensing)
The alternative to this upg rade is to open up a recruitment for Office Assistant immediately and continue to backfill the duties through temporary staffing until filled permanently. However, staff must note that temporary staffing has been difficult to keep since the position came open in July 2022 and the City is currently on its third temporary staff member, with a fourth likely to start in April 2023 if the position is not filled permanently.
• Ad Hoc support by former permanent Payroll Accounting Technician +$10,000 – The City’ s former Payroll Accounting Technician left the City for a promotional opportunity in November 2022. To cover critical payroll functions since that time, the City has utilized a contractual payroll consultant who trained with the former permanent Payroll Accounting Technician for approximately one month. However, there is still the need from time to time to contact and get support from the former permanent Payroll Accounting Technician for any items, such as year -end reporting and tax filings, that couldn ’t be covered during the initial training. There will also be a similar need when a new permanent Payroll Accounting Technician starts on February 22, 2023. The ad hoc support contract with the former permanent Payroll Accounting Technician has a one -year term through November 2023 and is not expected to exceed $10,000. • GASB 75 Actuarial Study +$12,400 – As described previously, there is the need every two years to perform an OPEB Actuarial Study per accounting standards (GASB 75). However, this cost w as accidentally omitted from the FY 2023 Adopted Budget.
Community Development
• Contract Plan Check support offset by revenue +$200,000 – There has been a large increase in building permit applications needing third party plan check . 7 Packet Pg. 61
FY 2023 Mid-Year Update and Budget Adjustments Page 14 of 19 Nevertheless, these services are fully cost neutral to the City and paid through Building Construction Permit fees.
• Contract Permit Technician support offset by revenue +$10,000 – There has been i ncreased need for part-time contractual Permit Technician services associated with an increase in building permit applications. These services are fully cost neutral to the City and paid through Advanced Plan Check fees.
Police Department
• Vacancy savings – various positions in PD Administration ($25,000) – There is anticipated to be salary savings in Police that can be shifted towards other needed costs. While the Police Department is only requesting to shift $25,000 of savings in PD Administration to other purposes, the level of anticipated vacancy savings in the whole Police Depart ment for FY 2023 is anticipated to be over $470,000. This is due to vacancies in the following positions: four (4) Police Officer positions, two (2) Public Safety Dispatcher positions, and four (4) Crossing Guard positions ; with an additional six Police Of ficer retirements expected in the next 12 -18 months. However, a large portion of this anticipated savings is already included within the 2% vacancy savings factor built into the FY 2023 Adopted Budget. Thus, Police, along with other departments, are only shifting vacancy savings to other purposes that are unusual in duration and over and above the pre-established 2% vacancy factor in FY 2023. • Contracted online advertising recruitment management services +$25,000 – In the current fiscal year, the Police D epartment budgeted $25,000 for recruitment. Despite persistent efforts, the recruitment and hiring of Police Officers to fill the vacancies detailed above has remained a significant challenge, not just for the Campbell Police Department, but for law enforc ement organizations across the United States. Over the past two years, department staff has conducted extensive research into recruitment and marketing strategies within the industry and developed an initial recruitment strategy with the aim of minimizing costs by managing most of the work in -house. Considering this, the Police Department is requesting an increase in the recruitment expenditure account to pay for contracted online advertising management through the end of FY 2023. Staff plans to present additional information to Council during the FY24 budgeting process, seeking approval to implement a comprehensive marketing campaign for Police Officer hiring.
• Vacancy savings – various positions in PD Special Enforcement ($52,708) – There is anticipated t o be salary savings in Police Special Enforcement that can be shifted towards other needed costs. Again, w hile the Police Department is only requesting to shift $ 52,708 of savings in PD Special Enforcement to other purposes, the level of anticipated vacan cy savings in the whole Police Department for FY 2023 is anticipated to be over $470,000. Please see previous section for more details.
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FY 2023 Mid-Year Update and Budget Adjustments Page 15 of 19 • New 3D laser scanner to document major traffic collision scenes and major crime scenes +$52,708 – The Police Department’s Major Accident Investigation Team (MAIT) and Crime Scene Response Team (CSRT) currently use a Faro 3D laser scanner to document major traffic collision scenes and major crime scenes.
The laser scanner, software, and required training was purchased and implemented in 2016 for $73,134. In September 2022, the Police Department was advised that its current scanner would no longer be supported after the software renewal expired in December 2022. This request is for the purchase of a new 3D laser scanner w ith Faro that is supported and can produce a scan in approximately one tenth the time of Police’s current system (approximately 10 minutes total time at a major collision).
Public Works
• Vacancy savings – temporary staffing in Public Works Administration ($10,000) – There is anticipated to be salary savings in temporary staff in Public Works Administration that can be shifted towards other needed costs. • Unplanned, but needed initial Structural Study of Ainsley House +$10,000 – The Ainsley House is a valuable historic asset of the City, but due to its age, staff also needs to determine whether any structural issues need to be addressed to ensure that it can be maintained long -term. Thus, staff requests funding to perform an initial structural study of the Ainsley House. • Vacancy savings – Building Maintenance permanent staff ($35,000) – There is anticipated to be salary savings in permanent staff in Building Maintenance that can be shifted towards other needed costs.
• Vacancy savings – Building Maintenance temporary staff ($33,000) – There is anticipated to be salary savings in temporary staff in Building Maintenance that can be shifted towards other needed costs.
• Unplanned, but needed HVAC control replacement at CCC Building Q +$14,000 – This request is to pay for an unplanned HVAC control replacement at the Campbell Community Center Building Q.
• Corp Yard Admin Building emergency roof repair +$19,600 – This request is to pay for emergency roof repairs at the Corp Yard Admin istration Building emergency roof due to continuous leaks in the existing roofing that are no longer patchable.
• Unplanned, but needed auto-door replacement at CCC Building M Room 50 +$23,000 – This request is to pay for unplanned auto -door replacement at the Campbell Community Center Building M Room 50.
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FY 2023 Mid-Year Update and Budget Adjustments Page 16 of 19 • Unplanned, but needed replacement of 3 HVAC units CCC K Wing +$55,000 – This request is to pay for unplanned emergency work at the Campbell Community Center K Wing to replace 3 HVAC units.
• Unplanned, but needed re -piping existing l ines to new heat pumps at CCC Building B +$10,000 – This request is to pay re-piping existing lines to new heat pumps at the Campbell Community Center Building B.
• Unplanned, but needed re -piping existing lines to new heat pumps at CCC Building B +$10,000 – This request is to pay re-piping existing lines to new heat pumps at the Campbell Community Center Building B.
• Unplanned, but needed air handler repairs at City Hall +$13,000 – This request is to pay for unplanned air handler repairs at City Hall. • Emergency repairs of 2nd Street Garage elevator +$27,800 – This request is to pay for emergency repairs of 2nd Street Garage elevator doors due to failure as a result of age and usage over time.
• Emergency replacement of CCC pool boiler replacement +$62,000 – This request is to pay for Campbell Community Center emergency pool boiler replacement. The existing boiler was deemed beyond repair and locked out by the annual State inspection team.
• Unplanned, but needed replacement of failing HVAC units (3) at CCC Building C +$65,000 – This request is to pay for failing HVAC units (3) at the Campbell Community Center Building C.
• Transfer to Increase CIPR Funding for CCC C -wing Breezeway Re -Roofing +$9,000 – The CCC C-wing breezeway roof is in need of repair and is sho wn in the Adopted 2023 -2027 CIP as Project 22AA; with $70,000 in funding currently committed by the CIPR. However, the c ost of materials has increased since first approved and the l owest bid was $9,000 more than budgeted. This budget adjustment transfers additional CIPR funding to the project so that it can be completed.
• Transfer to Fleet Fund to support outright purchase of five (5) new Police Ford Interceptor Utility Vehicles +$307,400 – As described in greater detail in a separate staff report to be p resented to Council during this same meeting, it would be more financially beneficial for the City to make an outright purchase of five (5) new Police Ford Interceptor Utility Vehicles for a cost of $382,400 rather than leasing them. Lease costs have incr eased significantly since the order for these vehicles was first placed. $75,000 of this cost can be supported by the FY 2023 Adopted Budget in the Motor Vehicle Pool Fund (#641). The remaining $307,400 is proposed to be funded by the General Fund (#101) as a mid -year adjustment.
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FY 2023 Mid-Year Update and Budget Adjustments Page 17 of 19 Economic Update
Although economic data was relatively light for the week ending February 10 th, numerous members of the Federal Reserve including Fed Chief Powell were consistent in their messaging regarding the need for addition al rate increases to curtail inflation.
Another consistent theme among all Fed members interviewed was the strength of the latest labor market report showing employers nationwide added 517,000 workers in January and an unemployment rate of 3.4%, the lowest rate since 1969. Hiring was broad-based across industries nationwide with leisure and hospitality, professional and business services, and government hiring leading the gains. In addition, upward revisions for November and December totaled +71,000 jobs. T he labor force participation rate ticked up slightly to 62.4%, although still running below the pre - pandemic level of 63.3%. Average hourly earnings declined to 4.4% year -over-year in January from 4.8% year -over-year in December, a sign that a key componen t of inflation is moderating. Nevertheless, Chairman Powell in a moderated discussion at the Economic Club of Washington, D.C. referenced the employment report, stating that “it shows you why we think this will be a process that takes a significant period of time.” In addition, Federal Reserve Bank of New York President John Williams at a Wall Street Journal event in New York referenced wage growth, which is above levels necessary to reach the Federal Reserve’s 2% goal for inflation.
Additionally, the University of Michigan Consumer Sentiment index moved up to 66.4 in early February 2023, higher than the survey of economist’s expectations and up from
64.9 in January 2023. Consumer inflation expectations in February also moved higher; the 1-year measure was 4.2% in February 2023 up from 3.9% in January 2023, and the 5-year measure was unchanged from the prior month at 2.9%. The survey showed 42% of consumers expect increases in unemployment in the coming year, up significantly from a year ago when the future unemployment expectation gauge was only 25%.
Elevated concerns regarding unemployment could result in reduced consumer spending in the months ahead.
U.S. Consumer Credit numbers were also recently released reflecting the smallest increase since January of 2021. Of note, the revolving credit outstanding component , which includes credit cards , climbed $7.2 billion, the smallest increase since August of 2021. Although these numbers reflect a decline of consumer use of credit cards and other loan types, many U .S. consumers continue to struggle with higher prices, and according to the U.S. Census Bureau Survey, one in three households reported using credit cards or loans to meet their spending needs in January 2023.
The December 2022 Producer Price Index (PPI ) confirmed a declining inflation trend, and weak retail sales provided evidence of slower consumer spending and economic growth. Producer prices fell 0.5% month-over-month nationwide in December 2022 and increased 6.2% year -over-year, decelerating from N ovember’s 7.3% year -over-year increase. The Core Producer Price Index (PPI Ex -Food and Energy) rose just 0.1% for 7 Packet Pg. 65
FY 2023 Mid-Year Update and Budget Adjustments Page 18 of 19 the month and 5.5% year-over-year in December 2022, down from 6.2% year-over-year growth last month. Energy disinflation was the most signif icant factor in December’s lower numbers, while food prices came down marginally as well. Retail sales dropped
1.1% in December 2022 after a downward revision to a 1% decline in November 2022.
Retail sales rose 6% year -over-year in December 2022, unchanged from November’s year-over-year gain. Weakness was widespread among core retail and food service sectors. Non -store retailers, motor vehicles, and gasoline all softened as well. Softer inflation and growth data could provide support for a downshift in the magnitude and pace of Fed rate hikes, but again, Fed Chair Powell may not agree.
Industrial production nationwide fell 0.7% in December 2022 after a downward revision to -0.6% in November. The decrease was due to declines in production for manufacturing and mining, while utilities output rose sharply due to cold weather.
Capacity utilization dropped to 78.8% in December from 79.4% in November.
The housing sector continued to demonstrate weakness in December 2022, but trends are moderating with lower mo rtgage rates. Housing starts nationwide fell 1.4% month - over-month in December to 1.382 million units and were down 21.8% compared to December 2021. The dip was entirely due to a 19% decline in starts of multi-unit homes but was somewhat offset by an incr ease in starts of single -family homes as mortgage rates eased. Existing home sales fell 1.5% in December to 4.02 million units and were down 34% compared to a year ago. While home resales declined for the 11th month in a row, the pace of decline is decele rating. The 30 -year fixed rate mortgage fell to an average of 5.95% last week according to Freddie Mac, down from a peak of over 7% in November.
In California, total nonfarm employment in the state increased by 16,200 jobs over the month of December 2022. Additionally, statewide unemployment decreased to a rate of
4.1% in December 2022; equal to the rate in November 2022 and lower than the rate of
5.8% in December 2021. In Santa Clara County, the rate decreased to 2.0% in December 2022; down from 2.4% in November 2022 and 2.8% in December 2021. And in Campbell, the rate decreased to 1.9% in December 2022; down from 2.2% in November 2022 and 2.4% in December 2021. At its pandemic high point in April 2020, the Campbell unemployment rate had reached 11.7%.
FISCAL IMPACT
If approved, staff proposed adjustments would result in a n increase to General Fund budgeted revenues of $3,005,399 and an increase to General Fund budgeted expenditures of $1,768,602; as shown in Attachment s A, B, and C. However, the requested actions will not result in any General Fund reserves being utilized in FY 2023.
Additionally, if approved, the General Fund will continue to be fully balanced in FY 2023; with a slight projected surplus of $542,688.
ALTERNATIVES
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FY 2023 Mid-Year Update and Budget Adjustments Page 19 of 19
1. Approve requested budget adjustments, but modify as desired.
2. Do not approve requested budget adjustments, but ask staff to return at a later date with modifications.
3. Provide staff with other direction.
Prepared by:
Will Fuentes, Finance Director
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Summary of General Fund Revenues vs Expenditures FY 2023 (Mid-Year) b. Resolution - FY 2023 Mid-Year Adjustments
c. Line-Item Detail for Mid-Year Adjustments (FY 2023)
d. Reconciliation of FY 2023 Adopted Budget to FY 2023 Amended Budget 7 Packet Pg. 67
SUMMARY ‐ Fiscal Year (FY) 2023 Attachment A
Q2 ‐ Ending December 31, 2022
GENERAL FUND
YTD Actuals Amd. Budget % of Budget Proj YE Proj vs Bud YTD Actuals Year‐End % of YE YTD Growth ($) YTD Growth (%)
REVENUES
Property Tax 4,948,859$ 20,654,400$ 23.96% 20,526,000$ (128,400)$ ‐ 4,526,895$ 19,510,782$ 23.20% 421,963$ 9.32% Sales & Use Taxes 6,659,874$ 15,903,012$ 41.88% 18,221,459$ 2,318,447$ + 5,334,797$ 16,419,362$ 32.49% 1,325,077$ 24.84% Other Taxes 3,572,549$ 8,622,400$ 41.43% 8,602,100$ (20,300)$ ‐ 3,066,792$ 7,894,353$ 38.85% 505,758$ 16.49% Licenses and Permits 1,868,755$ 3,894,820$ 47.98% 4,173,500$ 278,680$ + 1,775,774$ 3,742,394$ 47.45% 92,981$ 5.24% Fines/Forfeits/Penalties 42,101$ 105,000$ 40.10% 107,500$ 2,500$ + 33,107$ 222,721$ 14.86% 8,995$ 27.17% Investments Income 451,837$ 310,900$ 145.33% 610,900$ 300,000$ + 5,809$ (317,035)$ ‐1.83% 446,028$ 7678.55% Intergovernmental Revenue 246,944$ 1,074,100$ 22.99% 1,075,700$ 1,600$ + 348,156$ 985,556$ 35.33% (101,212)$ ‐29.07% Charges for Service 2,243,052$ 4,880,200$ 45.96% 4,980,430$ 100,230$ + 2,022,715$ 4,843,230$ 41.76% 220,336$ 10.89% Leases & Rentals 1,663,836$ 2,933,200$ 56.72% 2,965,800$ 32,600$ + 1,400,258$ 2,779,743$ 50.37% 263,578$ 18.82% Miscellaneous Revenues 67,803$ 134,800$ 50.30% 168,346$ 33,546$ + 57,746$ 274,216$ 21.06% 10,057$ 17.42% Other Revenues 31,381$ 84,600$ 37.09% 84,600$ ‐$ = 39,548$ 77,059$ 51.32% (8,167)$ ‐20.65% OFS ‐ Operating Transfers In 1,150,056$ 3,152,083$ 36.49% 3,238,579$ 86,496$ + 433,213$ 866,425$ 50.00% 716,843$ 165.47% OFS ‐ Committed / Assigned Reserves 952,302$ 1,904,603$ 50.00% 1,904,603$ ‐$ = ‐$ ‐$ N/A 952,302$ N/A TOTAL REVENUES 23,899,349$ 63,654,118$ 37.55% 66,659,517$ 3,005,399$ + 19,044,810$ 57,298,806$ 33.24% 4,854,539$ 25.49%
TRUE TRUE TRUE TRUE TRUE
YTD Actuals Amd. Budget % of Budget Mid‐Year Adj Adj vs Bud YTD Actuals Year‐End % of YE YTD Growth ($) YTD Growth (%)
EXPENDITURES
City Council 158,910$ 346,065$ 45.92% 346,065$ ‐$ = 154,800$ 316,539$ 48.90% 4,110$ 2.65% City Manager's Office 1,159,903$ 3,120,211$ 37.17% 3,150,111$ 29,900$ ‐ 887,895$ 2,365,432$ 37.54% 272,009$ 30.64% City Clerk's Office 191,629$ 665,073$ 28.81% 609,573$ (55,500)$ + 245,819$ 535,646$ 45.89% (54,191)$ ‐22.04% Recreation & Comm Srvcs 2,812,058$ 6,163,202$ 45.63% 6,617,503$ 454,301$ ‐ 2,355,415$ 4,581,380$ 51.41% 456,643$ 19.39% Finance 1,033,200 $ 2,458,255$ 42.03% 2,458,255$ ‐$ = 905,185$ 1,977,207$ 45.78% 128,015$ 14.14% Community Development 1,834,987$ 4,704,253$ 39.01% 4,914,253$ 210,000$ ‐ 1,288,996$ 3,120,853$ 41.30% 545,992$ 42.36% Legal Services 205,069$ 582,809$ 35.19% 582,809$ ‐$ = 272,306$ 544,434$ 50.02% (67,237)$ ‐24.69% Police Department 10,091,586$ 21,228,832$ 47.54% 21,228,832$ ‐$ = 9,853,311$ 20,668,639$ 47.67% 238,275$ 2.42% Fire Services 5,155,320$ 10,310,640$ 50.00% 10,310,640$ ‐$ = 4,933,614$ 9,867,228$ 50.00% 221,706$ 4.49% Public Works 2,994,274$ 6,512,858$ 45.97% 6,734,258$ 221,400$ ‐ 2,731,629$ 5,750,100$ 47.51% 262,645$ 9.61% COVID‐19 (Payroll) 5,679$ ‐$ N/A ‐$ ‐$ = 87,608$ 275,135$ 31.84% (81,929)$ ‐93.52% COVID‐19 (Non‐Payroll) 35,041$ 103,468$ 33.87% 103,468$ ‐$ = 25,688$ 55,521$ 46.27% 9,353$ 36.41% Non‐Departmental (Other) 4,926,573$ 8,152,562$ 60.43% 9,061,063$ 908,501$ ‐ 3,452,697$ 6,230,349$ 55.42% 1,473,876$ 42.69% TOTAL EXPENDITURES 30,604,229$ 64,348,227$ 47.56% 66,116,829$ 1,768,602$ ‐ 27,194,963$ 56,288,463$ 48.31% 3,409,266$ 12.54% Revenues vs. Expenditures (6,704,880)$ (694,109)$ 542,688$ 1,236,797$ (8,150,152)$ 1,010,342$ FY 2022 Year over Year FY 2023
FY 2023
FY 2022 Year over Year
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Attachment: Summary of General Fund Revenues vs Expenditures FY 2023 (Mid-Year) (AFY 2023 Mid- CHART REVENUES VS. EXPENDITURES ‐ Fiscal Year (FY) 2023 Attachment A Q2 ‐ Ending December 31, 2022
GENERAL FUND
FY 2023 YTD FY 2022 YTD Growth (%)
Revenues 23,899,349 $ 19,044,810$ 25.49%
Expenditures 30,604,229 $ 27,194,963$ 12.54%
$‐
$5,000,000
$10,000,000
$15,000,000
$20,000,000
$25,000,000
$30,000,000
$35,000,000
FY 2023 YTD FY 2022 YTD
Revenues vs. Expenditures ‐ Q2 Fiscal Year (FY) 2023
Revenues Expenditures
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Attachment: Summary of General Fund Revenues vs Expenditures FY 2023 (Mid-Year) (AFY 2023 Mid- RESOLUTION NO. _________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
AUTHORIZING MID-YEAR BUDGET ADJUSTMENT S TO REFLECT CHANGES IN
PROJECTED REVENUES AND REQUESTED EXPENDITURE NEEDS FOR FISCAL (FY) YEAR 2023
WHEREAS, the City Council adopted an annual budget for the operation of all municipal departments and facilities for Fiscal Year (FY) 2023 and a capital improvement plan (CIP) for 2023-2027 on June 21, 2022; and
WHEREAS, at the February 21, 2023 City Council meeting, staff presented a Mid- Year Report on the City’s General Fund revenues and expenditures f or FY 2023 along with necessary revenue and expenditure adjustments in other funds; and
WHEREAS, staff has reviewed and presented recommended re venue and expenditure budget adjustments shown in Attachment C of the accompanying staff report; and
WHEREAS, staff projects that year-end General Fund revenues for FY 202 3 will be greater than budget estimates by approximately $3,005,399; and
WHEREAS, staff requests General Fund expenditure increases of $1,768,602 for FY 2023; and
WHEREAS, after all mid-year adjustments, the General Fund will be fully balanced for FY 2022 with a slight projected surplus of $542,688; and
WHEREAS, staff requests other revenue and expenditure adjustments outside the General Fund for FY 2023 and shown in Attachment C of the accompanying staff report; and
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell hereby authorizes Mid-Year General Fund Revenue Budget Adjustments for FY 202 3 shown in Attachment C of the accompanying staff report and incorporated by reference.
PASSED AND ADOPTED this _ day of 2023, by the following roll call vote:
AYES: COUNCILMEMBERS:
NOES: COUNCILMEMBERS:
ABSENT: COUNCILMEMBERS:
APPROVED:
___________________________
Anne Bybee, Mayor
ATTEST:
___________________________
Andrea Sanders, City Clerk
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Attachment: Resolution - FY 2023 Mid-Year Adjustments (AFY 2023 Mid-Year Update and Budget Adjustments) GENERAL FUND (#101)
1) Revenue Revisions
Account Title Category Dept GL Account Amount
PROP TAXES ‐ CURR SECURE A ‐ PROPERTY TAX FN 101.535.4001 244,900 PROP TAXES ‐ CURR UNSECR A ‐ PROPERTY TAX FN 101.535.4002 (16,800) PROPERTY TAX PASS THRU A ‐ PROPERTY TAX FN 101.535.4007 (7,500) RESIDUAL RPTTF DISTRIBUT A ‐ PROPERTY TAX FN 101.535.4008 (32,500) PROP TAXES ‐ ERAF A ‐ PROPERTY TAX FN 101.535.4011 (316,500) A ‐ PROPERTY TAX Total (128,400)
SALES AND USE TAXES B ‐ SALES TAX FN 101.535.4110 2,093,909 TRANSACTIONS & USE TAX B ‐ SALES TAX FN 101.535.4112 224,538 B ‐ SALES TAX Total 2,318,447
FRANCHISES ‐ CABLE TV C ‐ OTHER TAXES CM 101.510.4122 (36,500) AT&T FRANCHISE FEE C ‐ OTHER TAXES CM 101.510.4125 (43,000) TRANSIENT OCCUPANCY TAX C ‐ OTHER TAXES FN 101.535.4150 450,000 REAL PROP TRANSFER TAX C ‐ OTHER TAXES FN 101.535.4153 (387,500) CONSTRUCTION TAX C ‐ OTHER TAXES CD 101.554.4151 (10,800) FARMERS MARKET IN LIEU C ‐ OTHER TAXES CM 101.556.4155 7,500 C ‐ OTHER TAXES Total (20,300)
CONSTRUCTION PERMITS D ‐ LICENSES & PERMITS CD 101.554.4210 222,000 ADVANCED PLAN CHECK FEE D ‐ LICENSES & PERMITS CD 101.554.4211 67,200 GENERAL REVENUE‐BLDG DEP D ‐ LICENSES & PERMITS CD 101.554.4212 4,600 PLN CHECK‐TITLE 24 ENERG D ‐ LICENSES & PERMITS CD 101.554.4213 4,600 TECHNOLOGY ENHANCEMNT FE D ‐ LICENSES & PERMITS CD 101.554.4214 (19,720) D ‐ LICENSES & PERMITS Total 278,680
CODE ENFORCEMENT FINES E ‐ FINES/FORFEITS/PENALTIES CD 101.559.4371 40,000 VEHICLE CODE FINES‐COUNT E ‐ FINES/FORFEITS/PENALTIES PS 101.604.4320 (25,000) VEHICLE CODE FINES‐STATE E ‐ FINES/FORFEITS/PENALTIES PS 101.604.4330 (12,500) E ‐ FINES/FORFEITS/PENALTIES Total 2,500
INVESTMENT EARNINGS F ‐ INVESTMENT INCOME FN 101.535.4410 (200,000) Line‐Item Detail for Mid‐Year Adjustments (FY 2023)
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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2023) (AFY 2023 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2023)
UNREALIZED GAINS/LOSSES F ‐ INVESTMENT INCOME FN 101.535.4431 500,000 F ‐ INVESTMENT INCOME Total 300,000
ST HOMEOWNERS PROP TAX RG ‐ INTERGOVERNMENTAL REVENUE FN 101.535.4581 (3,900) OTHER GRANTS G ‐ INTERGOVERNMENTAL REVENUE PS 101.604.4523 3,500 TRANSIT SHELTER ADVERTIS G ‐ INTERGOVERNMENTAL REVENUE PW 101.720.4544 2,000 G ‐ INTERGOVERNMENTAL REVENUE Total 1,600
ADULT SERVICES ‐ CLASSES H ‐ CHARGES FOR SERVICES RC 101.526.4612 26,775 ADULT SERVICES ‐ PROGRAM H ‐ CHARGES FOR SERVICES RC 101.526.4626 (17,200) COMM GRP SPON‐SPEC EVENT H ‐ CHARGES FOR SERVICES RC 101.527.4630 1,930 FACILITY RENTAL SURCHARG H ‐ CHARGES FOR SERVICES RC 101.527.4634 2,000 THEATER PRESERVATION CHG H ‐ CHARGES FOR SERVICES RC 101.529.4632 (20,550) THEATRE FACILITY FEE H ‐ CHARGES FOR SERVICES RC 101.529.4633 (9,300) THEATER TICKET SALES H ‐ CHARGES FOR SERVICES RC 101.529.4644 (56,600) SPONSORSHIP INCOME H ‐ CHARGES FOR SERVICES RC 101.529.4645 6,500 THEATER PROGRAM ADS H ‐ CHARGES FOR SERVICES RC 101.529.4646 225 PROGRAM FEES‐SPORTS H ‐ CHARGES FOR SERVICES RC 101.531.4613 115,000 PROGRAM FEES‐FITNESS H ‐ CHARGES FOR SERVICES RC 101.531.4622 9,000 SKATE PARK INCOME H ‐ CHARGES FOR SERVICES RC 101.531.4628 5,700 PROGRAM FEES‐DAY CAMPS H ‐ CHARGES FOR SERVICES RC 101.532.4617 60,000 PROGRAM FEES‐CLASSES H ‐ CHARGES FOR SERVICES RC 101.532.4619 136,500 PROGRAM FEES‐PRESCHOOL H ‐ CHARGES FOR SERVICES RC 101.532.4620 (68,500) ZONING FEES H ‐ CHARGES FOR SERVICES CD 101.551.4660 (160,000) GENERAL PLAN MAINT FEE H ‐ CHARGES FOR SERVICES CD 101.552.4670 (56,600) MICROFILM FEES H ‐ CHARGES FOR SERVICES CD 101.554.4661 (100) TRAINING & EDUCATION FEE H ‐ CHARGES FOR SERVICES CD 101.554.4672 16,000 STOP WORK FEE H ‐ CHARGES FOR SERVICES CD 101.554.4673 50,000 FALSE ALARM FEES‐PD H ‐ CHARGES FOR SERVICES PS 101.602.4693 (1,000) COMM GRP SPON‐SPEC EVENT H ‐ CHARGES FOR SERVICES PS 101.604.4630 31,950 COST RECOVERY‐PD DUI H ‐ CHARGES FOR SERVICES PS 101.604.4698 (2,500) COST RECOVERY‐PD H ‐ CHARGES FOR SERVICES PS 101.604.4704 (26,700) PROJECT OVERHEAD OFFSET H ‐ CHARGES FOR SERVICES PW 101.720.4725 2,000 TRAFFIC ENGINEERING FEES H ‐ CHARGES FOR SERVICES PW 101.720.4728 3,000
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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2023) (AFY 2023 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2023)
PROJECT OVERHEAD OFFSET H ‐ CHARGES FOR SERVICES PW 101.730.4725 (30,000) SMALL CELLS PERMIT–PUBLI H ‐ CHARGES FOR SERVICES PW 101.730.4737 10,000 SALE‐MAPS & PUBLICATIONS H ‐ CHARGES FOR SERVICES PW 101.730.4760 (20,000) ENGR & SUBDIV FILING FEE H ‐ CHARGES FOR SERVICES PW 101.740.4722 42,000 PROJECT OVERHEAD OFFSET H ‐ CHARGES FOR SERVICES PW 101.740.4725 50,000 COMMUNITY GARDEN FEES H ‐ CHARGES FOR SERVICES PW 101.745.4735 700 H ‐ CHARGES FOR SERVICES Total 100,230
RENTS/LEASES (REAL & PER I ‐ LEASES & RENTALS RC 101.527.4810 50,000 OTHER RENTAL INCOME I ‐ LEASES & RENTALS RC 101.527.4819 125,000 OTHER RENTAL INCOME I ‐ LEASES & RENTALS RC 101.529.4819 (144,000) RENTS/LEASES (REAL & PER I ‐ LEASES & RENTALS FN 101.540.4810 200 RENTS/LEASES (REAL & PER I ‐ LEASES & RENTALS PW 101.701.4810 1,400 I ‐ LEASES & RENTALS Total 32,600
DONATIONS‐SR CITIZENS CT J ‐ MISC. & OTHER REVENUE RC 101.526.4813 240 J ‐ MISC. & OTHER REVENUE Total 240
OTHER REVENUE J ‐ MISCELLANEOUS REVENUE CM 101.510.4965 1,050 DONATIONS‐YOUTH SCHOLAR J ‐ MISCELLANEOUS REVENUE RC 101.524.4821 10,894 OTHER REVENUE J ‐ MISCELLANEOUS REVENUE CD 101.554.4965 1,200 IN‐LIEU FEES J ‐ MISCELLANEOUS REVENUE CD 101.554.4974 5,000 OTHER REVENUE J ‐ MISCELLANEOUS REVENUE PS 101.604.4965 75 OTHER REVENUE J ‐ MISCELLANEOUS REVENUE PS 101.605.4965 1,587 TREE IN LIEU FEE J ‐ MISCELLANEOUS REVENUE PW 101.701.4971 10,000 NOTICE/IMPROVE/OBLIGATIO J ‐ MISCELLANEOUS REVENUE PW 101.730.4924 3,500 J ‐ MISCELLANEOUS REVENUE Total 33,306
OPERATING TRANSFERS IN O ‐ OFS ‐ OPERATING TRANSFERS FN 101.980.6899 86,497 O ‐ OFS ‐ OPERATING TRANSFERS Total 86,497
Grand Total 3,005,399
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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2023) (AFY 2023 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2023)
2) Expenditure Revisions
Department Description GL Account Amount
City Manager's Office CITY MANAGER: Admin Analyst Savings 10‐16‐22 to 01‐23‐23 101.510.7001 (60,000) City Manager's Office CITY MANAGER: Council and Executive Team Facilitator 101.510.7435 18,100 City Manager's Office HR: Temporary staff support 101. 515.7430 65,000 City Manager's Office HR: Executive Team Facilitator 101.515.7437 6,800 City Manager's Office Total 29,900
City Clerk's Office CITY CLERK: Depty City Clerk Savings through 03‐19‐23 101.511.7001 (108,000) City Clerk's Office CITY CLERK: Temporary City Clerk help 101.511.7430 52,500 City Clerk's Office Total (55,500)
Recreation & Comm Srvcs RCS: Increase temporary staffing to cover Adult Center office 101.524.7002 8,000 Recreation & Comm Srvcs RCS: Training for new staff and attendance at state conference
101.524.7435 3,000
Recreation & Comm Srvcs RCS: Reduced need for Senior Nutrition meals City funding 101.525. 7432 (20,000) Recreation & Comm Srvcs RCS: Increased adult services class offerings 101.526.7002 10,000 Recreation & Comm Srvcs RCS: Reduced trip offerings 101.526.7441 (18,000) Recreation & Comm Srvcs RCS: Building Attendant vacancy savings 101.527.7002 (21,400) Recreation & Comm Srvcs RCS: Higher than expected utility costs 101.527.7420 297,364 Recreation & Comm Srvcs RCS: Lower actual costs for security company; offset by use of CPD
101.527.7432 (13,800)
Recreation & Comm Srvcs RCS: Higher than expected credit card fees due to increase in program activity
101.527.7438 44,000
Recreation & Comm Srvcs RCS: Additional Summer Concert Series expenses 101.527.7441 3,200 Recreation & Comm Srvcs RCS: Higher than expected utility costs 101.528.7420 11,008 Recreation & Comm Srvcs RCS: Increaed musuem exhibit expenses 101.528.7427 5,300 Recreation & Comm Srvcs RCS: Higher than expected utility costs 101.529.7420 9,270
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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2023) (AFY 2023 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2023)
Recreation & Comm Srvcs RCS: Decreased materials needs for rentals due to decreased demand
101.529.7430 (44,445)
Recreation & Comm Srvcs RCS: Lower than expected annual premium for insurance 101.529.7433 (10,016) Recreation & Comm Srvcs RCS: HT Preservation Reserve ‐ offset with draw down from reserve
101.529.7883 86,496
Recreation & Comm Srvcs RCS: Increased expenses for youth basketball and drop in sports
101.531.7002 12,900
Recreation & Comm Srvcs RCS: Increaed costs for sports, acquatics, and fitness; offset by higher fee revenue
101.531.7432 64,500
Recreation & Comm Srvcs RCS: Reduction in credit card fees which are being charged to another division instead
101.531.7438 (16,000)
Recreation & Comm Srvcs RCS: Youth Basketball League uniforms and supplies 101.531.7441 10,500 Recreation & Comm Srvcs RCS: Reduction in temporary personnel for one less preschool class offerred
101.532.7002 (29,076)
Recreation & Comm Srvcs RCS: Increased day camp expenses offset by fee revenue 101.532.7432 77,500 Recreation & Comm Srvcs RCS: Reduction in credit card fees which are being charged to another division instead
101.532.7438 (16,000)
Recreation & Comm Srvcs Total 454,301
Finance FN: Vacancy savings Office Assistant through 03‐31‐23 / OA to ACII Upgrade
101.535.7001 (88,400)
Finance FN: Ad Hoc Payroll Support / Temp Office Assistant Support / GASB 75 Actuarial Study
101.535.7430 88,400
Finance Total ‐
Community Development CDD: Third Party Plan Checks / PT Permit Tech Services 101.554.7430 210,000 Community Development Total 210,000
Police Department PD: Various vacancy savings 101.601.7001 (25,000) Police Department PD: Contracted online advertising recruitment management 101.601.7427 25,000 Police Department PD: Various vacancy savings 101.604.7001 (52,708)
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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2023) (AFY 2023 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2023)
Police Department PD: New 3D laser scanner to document major traffic collision scenes and major crime scenes
101.604.7427 52,708
Police Department Total ‐
Public Works PW: Vacancy savings for temporary staff 101.701.7002 (10,000) Public Works PW: Initial Structural Study of the Ainsley House 101.701.7430 10,000 Public Works PW: Vacancy savings various 101.780.7001 (35,000) Public Works PW: Vacancy savings temporary positions 101.780.7002 (33,000) Public Works PW: Unplanned HVAC control replacement at the Campbell Community Center Building Q / Corp Yard Admin Building
emergency roof repair / unplanned auto‐door replacement at the Campbell Community Center Building M Room 50
101.780.7428 56,600
Public Works PW: Campbell Community Center K Wing to replace 3 HVAC units / Unplanned Air Handler Repairs at City Hall / Re‐piping existing lines to new heat pumps at the Campbell Community Center Building B / 2nd Street Garage Elevator repairs / Campbell Community Center emergency pool boiler
replacement / failing HVAC units (3) at the Campbell
Community Center Building C
101.780.7429 232,800
Public Works Total 221,400
Non‐Departmental (Other) IT: Transfer to cover IT mid‐year adjusts / PW: Outright fleet purchase
101.980.9899 401,180
Non‐Departmental (Other) NonDept: Higher than expexted utility costs 101.540.7420 163,000 Non‐Departmental (Other) FN: Former Sales Tax Consultant Audits / Trace3 Recovery New Sales Tax Auditors
101.540.7430 173,000
Non‐Departmental (Other) FN: PLAN JPA final premium #'s 101.540.7433 (25,657) Non‐Departmental (Other) FN: Correct ESCO Loan Payment Budget 101.540.7438 80,000 Non‐Departmental (Other) FN: Revised OPEB ARC Costs 101.540.7626 107,978 Non‐Departmental (Other) NonDept: Transfer to support CIP project 22AA CCC C‐wing Breezeway Re‐roofing
101.990.9999 9,000
Non‐Departmental (Other) Total 908,501
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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2023) (AFY 2023 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2023)
Grand Total 1,768,602
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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2023) (AFY 2023 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2023)
OTHER FUNDS
Fund Desription Rev or Exp GL Account Amount
207 ‐ LLD Fund Vacancy Savings Exp 207.770.7001 (60,000) 207 ‐ LLD Fund Signalized Intersection Battery Backup Project Exp 207.770.7429 60,000 207 ‐ LLD Fund Vacancy Savings Exp 207.775.7001 (80,000) 207 ‐ LLD Fund Tree Trimming Exp 207.775.7432 50,000 207 ‐ LLD Fund Campbell Community Center Turf Renovation Project Exp 207.775.7428 30,000 212 ‐ State & Local Grants Increased funding for CIP 22OO ‐ Measure B Bike/Ped Education & Encouragement
Rev 212.535.4571 264.96
212 ‐ State & Local Grants Increased funding for CIP 22OO ‐ Measure B Bike/Ped Education & Encouragement
Exp 212.990.9999 264.96
212 ‐ State & Local Grants Increased funding for CIP 23QQ ‐ Measure B Bike/Ped Education & Encouragement
Rev 212.535.4571 4,220.46
212 ‐ State & Local Grants Increased funding for CIP 23QQ ‐ Measure B Bike/Ped Education & Encouragement
Exp 212.990.9999 4,220.46
233 ‐ Housing Fund Housekeys Contractual Services Exp 233.537.7430 20,000 233 ‐ Housing Fund Housing Program Audit Consultant Savings Exp 233.557.7430 (160,000) 237 ‐ CFD #2 Actual Assessment Revenue Increase Rev 237.741.5005 17,150 435 ‐ Capital Projects Harriet Ave Sidewalk Exp 435.21QQ.7130 (1,502) 435 ‐ Capital Projects Harriet Ave Sidewalk Exp 435.20GG.7130 1,502 435 ‐ Capital Projects Increased Funding for CCC C‐wing Breezeway Re‐roofing Exp 435.22AA.7883 9,000 435 ‐ Capital Projects Increased Funding for CCC C‐wing Breezeway Re‐roofing Rev 435.990.6999 9,000 435 ‐ Capital Projects Increased funding for CIP 22OO ‐ Measure B Bike/Ped Education & Encouragement
Exp 435.22OO.7130 264.96
435 ‐ Capital Projects Increased funding for CIP 22OO ‐ Measure B Bike/Ped Education & Encouragement
Rev 435.990.6999 264.96
435 ‐ Capital Projects Increased funding for CIP 23QQ ‐ Measure B Bike/Ped Education & Encouragement
Exp 435.23QQ.7883 4,220.46
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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2023) (AFY 2023 Mid-Year Update and Budget Line‐Item Detail for Mid‐Year Adjustments (FY 2023)
435 ‐ Capital Projects Increased funding for CIP 23QQ ‐ Measure B Bike/Ped Education & Encouragement
Rev 435.990.6999 4,220.46
641 ‐ Motor Pool Vacancy Savings Exp 641.750.7001 (60,000) 641 ‐ Motor Pool Greater than Expected Fuel Costs Exp 641.750.7426 60,000 647 ‐ MIS Pool Fund Desktop Computer Replacement Exp 647.547.7438 45,000 647 ‐ MIS Pool Fund Employee Training Exp 647.547.7437 20,000 647 ‐ MIS Pool Fund Overtime to support public meetings after hours Exp 647.547.7003 6,000 647 ‐ MIS Pool Fund secondary internet line to 1G synchronous Exp 647.547.7421 3,600 647 ‐ MIS Pool Fund Archive Social‐ used to archive Social Media posts for PRA Exp 647.547.7429 4,880 647 ‐ MIS Pool Fund Adobe Acrobat Pro licenses Exp 647.547.7429 900 647 ‐ MIS Pool Fund Lynx technology GIS‐related costs over budget because of online GIS Permit Application with GIS layer
Exp 647.547.7430 10,000
647 ‐ MIS Pool Fund Water Tower lighting maintenance Exp 647.547.7430 3,400 647 ‐ MIS Pool Fund Transfer In from General Fund Rev 647.980.6899 93,780
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Attachment: Line-Item Detail for Mid-Year Adjustments (FY 2023) (AFY 2023 Mid-Year Update and Budget Reconciliation of FY 2023 Adopted Budget to FY 2023 Amended Budget
Table 1 – FY 2023 Budget Adjustments Approved Since July 1, 2021
Adopted
Budget
Adjustment Amended
Budget
Adopted Revenues $61,453,515
Encumbrance Carryover(1) 685,798
CIP Carryover(2) 1,108,805
General Plan Maintenance Fee Usage for Housing
Element consultant(3)
110,000
OTS Grant Usage(4) 75,000
Parklet Program Funding(5) 56,000
HRIS Implementation Support(6) 165,000
Sub‐Total Revenue Adjustments $2,200,603
Amended Revenues $63,654,118
Adopted Expenditures
$61,453,515
Encumbrance Carryover(1) 685,798
CIP Carryover(2) 1,108,805
General Plan Maintenance Fee Usage for Housing
Element consultant(3)
150,000
OTS Grant Usage(4) 75,000
Parklet Program Funding(5) 48,000
HRIS Implementation Support(6) 165,000
Zoning and Objective Standards Consultants(7) 662,109 Sub‐Total Expenditure Adjustments $2,894,712
Amended Expenditures $64,348,227
Surplus/(Deficit) $0 ($694,109)
(1) Shown as both a revenue and an expenditure since it is charged against Assigned Fund Balance within the General Fund and does not impact Unassigned Fund Balance when calculating reserve sufficiency. (2) Shown as both a revenue and an expenditure since charged against Assigned and Committed Fund Balances within the General Fund and does not impact Unassigned Fund Balance when calculating reserve sufficiency. (3) Shown as both a revenue and an expenditure since charged against Committed Fund Balances within the General Fund and does not impact Unassigned Fund Balance when calculating reserve sufficiency. $110,000 is shown as adjustment in General Plan Maintenance Fee revenues since $40,000 was already included in FY 2023 Adopted Budget. See resolution 12925 (11‐29‐22). $150,000 though is the anticipated expenditure in FY 2023. (4) Resolution 12908 (11‐15‐22) to accept and use OTS Grant in amount of $75,000. (5) Resolutions 12859 (07‐05‐22) and 12899 (10‐04‐22) to fund a Parklet grant program using new parklet program fees as well as $48,000 in funding from the ARPA fund as a Transfer In to the General Fund. (6) Resolutions 12892 (09‐20‐22) and 12918 (12‐06‐22) to fund HRIS implementation support services in payroll with funding from the ARPA fund as a Transfer In to the General Fund. (7) Resolution 12884 (08‐17‐22) to fund Zoning and Objective Standards Consultants using General Fund reserves.
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Attachment: Reconciliation of FY 2023 Adopted Budget to FY 2023 Amended Budget (AFY 2023 Mid-Year Update and Budget Adjustments)
City
Council
Report
TITLE: Response to 2022 Civil Grand Jury Report on Financial Transparency
RECOMMENDED ACTION
That the City Council authorize the Mayor to submit, on behalf of the C ity Council, the attached letter as the City’s response to the 2022 Santa Clara County Civil Grand Jury Report, “Show Me the Money: Financial Transparency Needed.”
BACKGROUND
The 2022 Santa Clara County Civil Grand Jury (“Civil Grand Jury”) is an investi gative arm of the judicial branch of government consisting of 19 members of the public, appointed by a Superior Court Judge, for a one -year term. The primary function of the Civil Grand Jury is devoted to “civil watchdog responsibilities” including analyzing procedures, methods and systems utilized by county/city government to determine whether more efficient and economical programs may be employed . During its term, the Civil Grand Jury may issue report(s) with findings of encountered problems and recommendations for solutions.
Pursuant to California Penal Code (CPC) Section 933(c), the City Council must comment on the findings and recommendations of a Civil Grand Jury report within 90 days of the release of the Civil Grand Jury report. Furthermore, and pu rsuant to CPC §933.05, the response shall indicate the City’s agreement or disagreement (wholly or partially) with the findings, specifying the portion of the finding that is disputed with an explanation of the reasons therefor. The City shall also indicat e when t he recommendation has or has not been implemented, with a summary regarding the implemented action or timeframe for implementation. Alternatively, the City could explain why the recommendation requires further analysis or that the recommendation will not be implemented because it is not warranted or is not reasonable. If additional analysis is desired, the City shall provide an explanation, scope and parameters of the analysis, and a timeframe for the matter to be prepared for discussion (not to exceed six months from the date of publication of the Civil Grand Jury report).
DISCUSSION
The 2022 Civil Grand Jury Report dated December 14, 2022 and titled “Show Me the Money: Financial Transparency Needed ” (Attachment B) investigated whether general law cities within Santa Clara County, including the City of Campbell, complied Item: 8
Category: NEW BUSINESS
Meeting Date: February 21, 2023
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Response to Civil Grand Jury - Financial Transparency Page 2 of 4 with California Government Code section 41004 (Section 41004), which states, “at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances. The city treasurer shall file a copy with the legislative body.”
The Civil Grand Jury concluded that there is widespread noncompliance with this state requirement throughout the County by the gener al law cities. As of the date of this report, six of the nine general law cities /towns in the County are noncompliant with this state law: Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno.
Additionally, the City of Cupertino was initially noncompliant until the city took corrective action during the Civil Grand Jury’s investigation. The City of Saratoga and City of Morgan Hill were the only two cities compliant prior to the investigation.
Pursuant to the Penal Code, the Grand Jur y requests that the City of Campbell respond to finding 6 and recommendation 6 by March 1 4, 20 23. The finding and recommendation, along with the City’s draft responses , are included below and in Attachment A . In addition, the City’s responses to each have been drafted in accordance with the requirements of California Penal Code § 933.05.
Finding 6
The City of Campbell does not produce monthly treasurer’s reports as required by California Government Code section 41004.
Response: Partially Agree
The C ity’s Finance Director, acting as City Treasurer, along with Finance Department staff, prepares several recurring financial reports to both comply with various sections of the California Government Code (GC) and to ensure financial transparency. These are submitted to Council and include the following:
• Bi-Monthly Bills and Claims Reports – To comply with GC Section 41004, displays all accounts payable and payroll disbursements. • Monthly Investment Transactions Report - To comply with GC Section 53607, dis plays account balances in City investment funds as well as deposits, withdrawals, and investment purchases.
• Quarterly Investment Report – Displays account balances in all City investment funds as well as cash balances in the City’s checking account, current market investment asset values, investment purchases and maturities, and actual receipts and disbursements (both in accounts payable and payroll).
• Annual Comprehensive Financial Report (ACFR) – Displays income statements and balances sheets for every City fund.
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Response to Civil Grand Jury - Financial Transparency Page 3 of 4 Nevertheless, City staff acknowledges that its recurring reports, many of which have remain unchanged for years, could be enhanced to more fully comply with GC Section 41004 as outlined in the Santa Clara County Civil Grand Jury report.
Recommendation 6
The City of Campbell should comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.
Response: The recommendation will be implemented
Financial transparency is highly valued by the City of Campbell in order to ensure accountability to the public for entrusting their funds with the City. As such, City staff will seek to model the compliant reports prepared by the Cities of S aratoga and Morgan Hill and submit to City Council a compliant Treasurer Report monthly, starting with the March 7, 2023 meeting. To allow for normal processing time to enter and close all financial transactions for a month, the first compliant Treasurer Report submitted to City Council shall be for the period of January 2023. All future Treasurer Reports will be submitted the first Council meeting of the month.
FISCAL IMPACTS
There are no fiscal impacts associated with staff’s recommendation contained in this Council Report. Staff will make the proper operational changes with existing resources to prepare compliant treasurer’s reports monthly.
ALTERNATIVES
1) Modify the letter and responses to the Civil Grand Jury; or 2) Provide other direction to staff.
Prepared by:
Will Fuentes, Finance Director
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Response to Civil Grand Jury - Financial Transparency Page 4 of 4 Approved by:
Brian Loventhal, City Manager
Attachment:
a. 2022 Civil Grand Jury Response Letter - Financial Transparency b. Show Me the Money - Financial Transparency Needed
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February 22, 2023
Honorable Beth McGowen
2023 Presiding Judge
Superior Court of California
County of Santa Clara
191 North First Street
San Jose, CA 95113
RE: Response to the Santa Clara County Civil Grand Jury Report, “Show Me the Money: Financial Transparency Needed” Dated December 14, 2022 Dear Honorable Judge McGowen,
The City of Campbell thanks you and the members of the Civil Grand Jury for your work on this important topic. Attached, p lease find the City’s response to the San ta Clara Civil Grand Jury Report, “Show Me the Money: Financial Transparency Needed.” The response was reviewed and approved by the Campbell City Council on February 21, 202 3. The attached document contains the City’s responses to F inding 6 and Recommendations 6.
If you have any questions, please contact Brian Loventhal, City Manager at [email protected] or (408) 866-2125.
Sincerely,
Anne Bybee
Mayor
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Attachment: 2022 Civil Grand Jury Response Letter - Financial Transparency (Response to Civil Grand Jury - Financial Transparency) City of Campbell Response to the Santa Clara County Civil Grand Jury Report Attachment: City of Campbell Response t o the Santa Clara County Civil Grand Jury Report
cc: City of Campbell City Council
Foreperson, 2022 Santa Clara County Civil Grand Jury
Clerk of the Santa Clara County Superior Court
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Attachment: 2022 Civil Grand Jury Response Letter - Financial Transparency (Response to Civil Grand Jury - Financial Transparency) City of Campbell Response to the Santa Clara County Civil Grand Jury Report Finding 6
The City of Campbell does not produce m onthly treasurer’s reports as required by California Government Code section 41004.
Response: Partially Agree
The City’s Finance Director, acting as City Treasurer, along with Finance Department staff, prepares several recurring financial reports to both comply with various sections of the California Government Code (GC) and to ensure financial transparency. These are submitted to Council and include the following:
• Bi-Monthly Bills and Claims Reports – To comply with GC Section 41004, displays all accounts payable and payroll disbursements. • Monthly Investment Transactions Report - To comply with GC Section 53607, displays account balances in City investment funds as well as deposits, withdrawals, and investment purchases.
• Quarterly Investment Repor t – Displays account balances in all City investment funds as well as cash balances in the City’s checking account, current market investment asset values, investment purchases and maturities, and actual receipts and disbursements (both in accounts payable and payroll).
• Annual Comprehensive Financial Report (ACFR) – Displays income statements and balances sheets for every City fund.
Nevertheless, City staff acknowledges that its recurring reports, many of which have remain unchanged for years, could be en hanced to more fully comply with GC Section 41004 as outlined in the Santa Clara County Civil Grand Jury report.
Recommendation 6
The City of Campbell should comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.
Response: The recommendation will be implemented
Financial transparency is highly valued by the City of Campbell in order to ensure accountability to the public for entrusting their funds with the City. As such, City staff will seek to model the compliant reports prepared by the Cities of Saratoga and Morgan Hill and submit to City Cou ncil a compliant Treasurer Report monthly, starting with the March 7, 2023 meeting. To allow for normal processing time to enter and close all financial transactions for a month, the first compliant Treasurer Report submitted to City Council shall be for the period of
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Attachment: 2022 Civil Grand Jury Response Letter - Financial Transparency (Response to Civil Grand Jury - Financial Transparency) City of Campbell Response to the Santa Clara County Civil Grand Jury Report
January 2023. All future Treasurer Reports will be submitted the first Council meeting of the month.
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Attachment: 2022 Civil Grand Jury Response Letter - Financial Transparency (Response to Civil Grand Jury - Financial Transparency)
Release date here Page 0 of 22
SHOW ME THE MONEY:
FINANCIAL TRANSPARENCY NEEDED
2022 Santa Clara County
Civil Grand Jury
December 14, 2022
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Attachment: Show Me the Money - Financial Transparency Needed (Response to Civil Grand Jury - Financial Transparency)
SHOW ME THE MONE Y: FINANCIAL TRANSPARENCY NEEDED
TABLE OF CONTENTS
GLOSSARY AND ABBREVIATIONS ...................................................................................... 2 SUMMARY ................................................................................................................................... 3 BACKGROUND ........................................................................................................................... 4 METHODOLOGY ....................................................................................................................... 5 INVESTIGATION ........................................................................................................................ 6 CONCLUSION ........................................................................................................................... 11 FINDINGS AND RECOMMENDATIONS ............................................................................. 12 REQUIRED RESPONSES ......................................................................................................... 15 APPENDIX ................................................................................................................................. 16 REFERENCES ............................................................................................................................ 19
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Attachment: Show Me the Money - Financial Transparency Needed (Response to Civil Grand Jury - Financial Transparency)
SHOW ME THE MONE Y: FINANCIAL TRANSPARENCY NEEDED
GLOSSARY AND ABBREVIATIONS
Government Code, Section
41004
California Government Code section 41004 states :
“Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and
accounting of all receipts, disbursements, and fund
balances. The city treasurer shall file a copy with the legislative body.”
Treasurer’s Reports
The reports required by Government Code section 41004
may have various styles and titles. For purposes of this report, the Civil Grand Jury will refer to these reports throughout as "treasurer's reports."
Charter City
Article XI, section 3(a) of the California Constitution authorizes the adoption of a city charter and provides that the charter has the force and effect of state law. Article XI, section 5(a), the "home rule" provision, grants to charter cities the ability to govern over "municipal affairs."
There are six c harter cities in Santa Clara County: San José, Palo Alto, Santa Clara, Sunnyvale, Gilroy, and
Mountain View.
General Law City
A general law city may only have a form of government
authorized by state general law . A city that has not
adopted a charter is bound by the state’s general laws even with respect to municipal affairs.
There are nine general law cities and towns in Santa Clara County: Los Altos, Los Altos Hills, Los Gatos , Milpitas, Campbell, Monte Sereno, Cupertino, Saratoga and
Morgan Hill. The scope of this investigation is limited to general law cities.
GAAP Generally Accepted Accounting Principles : a set of accounting rules and s tandards established by the
accounting industry.
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SUMMARY
General law cities in California are required to comply with California Government Code section 41004 (Section 41004), which states, “at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances.
The city treasurer shall file a copy with the legislative body.” The benefit of the law is to ensure financial accountability and public transparency as well as to foster better fiscal affairs. Treasurer's reports provide city c ouncils with timely and accurate financial information necessary to make reliable and sound decisions.
The 2022 Santa Clara County Civil Grand Jury (Civil Grand Jury) found that there is widespread noncompliance with this state requirement throughout Santa Clara County (County) by the general law cities . As of the date of this report, six of the nine general law cities 1 in the County are noncompliant with this state law: Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno. Additionally, the City of Cupertino was initially noncompliant until the city took corrective action during the Civil Grand Jury’s investigation. The City of Saratoga and City of Morgan Hill were the only two cities compliant prior to the investigation.
Based on responses from city officials, the Civil Grand Jury determined that there is a widespread misunderstanding among these general law cities in the County regarding Section 41004 reporting requirements. The Civil Grand Jury recommends that the noncompliant cities – Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno – comply with Section 41004.
1 The Town of Los Altos Hills and the Town of Los Gatos are general law cities.
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BACKGROUND
The State Legislature established the office of c ity treasurer by enactment of California Government Code, Title 4 - Government of Cities, Division 3 - Other Officers, Chapter 3 - City Treasurer. The statutory duties for city treasurers may generally be found in the following sections:
Section 41001: The city treasurer shall receive and safely keep all money the treasurer receives.
Section 41002: (a) The city treasurer shall comply with all laws governing the deposit and securing of public funds and the handling of trust funds in their possession; and (b) if the city has issued bonds, the city treasurer shall use a system of accounting and auditing that adheres to generally accepted accounting principles.
Section 41003: The city treasurer shall pay out money only on warrants signed by legally designated persons.
Section 41004: Regularly, at least once each month, the city treasurer shall submit to the city clerk a written report and accounting of all receipts, disbursements, and fund balances.
The city treasurer shall file a copy with the legislative body.
Pursuant to California Government Code section 36502, the city treasurer is an elective office.
California Government Code section 36508 and California Elections Code section 9222 permit cities to submit to the electors the question of whether the city treasurer position should be an appointive office. In that instance, the financial duties assigned by the state statutes to the city treasurer are transferred from an elected tr easurer to an appointed officer if approved by the electorate. Only one general law city in the County, Morgan Hill, continues to have an elected city treasurer, who serves for four years. All other cities in the County have opted to assign city treasurer duties to senior administrative staff.
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METHODOLOGY
Upon receiving a complaint regarding G overnment Code section 41004 noncompliance in Cupertino, the Civil Grand Jury decided to expand the investigation to review all nine general law cities in the C ounty: Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, Monte Sereno, Cupertino, Saratoga, and Morgan Hill. From March to August 2022, the Civil Grand Jury began the process by polling these Cities to determine if they produced treasurer’s reports.
The Civil Grand Jury took the following steps:
• Contacted a total of 22 officials across nine cities who were responsible for tasks relevant to the topic of this report.
• Reviewed relevant sections of the California Government Code, California Elections Code, and examined the ordinances, policies, and memos of each city relevant to their city treasurer duties.
• Reviewed published city council and city committee agendas relevant to Section 41004.
• Reviewed other relevant city documents, including but not limited to financial audits, city organizational charts, and relevant job descriptions.
• Verified the six most recent treasurer’s reports of each city, if submitted.
The Civil Grand Jury inspected the contents of each report to verify the inclusion of the required elements: monthly disbursements, receipts, and fund balances. The Civil Grand Jury also determined whether the reports were published at least once each month to be compliant with Section 41004.
It should be noted that most cities do not call their report “Treasurer’s Report.” Appendix A provides links to examples of compliant Section 41004 reports, showcasing variations in terms of report name, style, layout, and appearance.
The Civil Grand Jury used the 2011-2012 Solano County Civil Grand Jury report entitled “City Treasurer Functional Review” as a reference for this report.
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INVESTIGATION
All interviews and email correspondence were designed to determine if general law cities complied with Section 41004. To be deemed compliant, a city must produce a financial document at least once each month that details all of the following: monthly disbursements, receipts, and fund balances – and must be filed with the legislative body. Six months of repor ts were requested to verify an existing track record. Data collection and verification took place from March to July 2022.
The results of this investigation are depicted in Table 1 below.
Table 1. Section 41004 Compliance Among Nine General Law Cities
City/Town Compliant Noncompliant
Los Altos X
Los Altos Hills X
Los Gatos X
Milpitas X
Campbell X
Monte Sereno X
Cupertino X*
Saratoga X
Morgan Hill X
*During the investigation, Cupertino started complying with Section 41004.
There are a number of reasons for cities’ noncompliance:
• Some cities were under the impression that the Section 41004 mandate was a discretionary guideline.
• Others adopted the practice of other cities that did not produce the requisite monthly reports.
However, the primary error among the cities was that they produced abbreviated reports that omitted required information such as receipts, disbursements, and fund balances. Some of the deficient reports lacked substance, with abbreviated information presented without context or details.
The Civil Grand Jury believes there is no fiscal impact involved in complying with Section 41004.
Outside resources should not be required since existing staff already make some financial reports, collect this type of data, and should be able to produce treasurer’s reports. Therefore, each of the deficient cities can be compliant with minimal effort or burden.
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Noncompliant Cities and Towns
Los Altos
The City of Los Altos does not have an elected city treasurer. Further, the Los Altos Municipal Code does not specifically state which official performs the duties of a city treasurer . Los Altos Municipal Code Section 2.01.060, however, provides that the city manager is the administrative head of the city and is specifically empowered “keep the council at all times fully advised as to the financial condition and needs of the city.” In the City of Los Altos, monthly treasurer’s reports are not prepared and submitted to the city clerk in accordance with Section 41004.
At the time of the Civil Grand Jury inquiry in June 2022, the City of Los Altos did not submit any treasurer’s reports. According to the C ity of Los Altos , Government Code section 37208 indemnified them from the Section 41004 mandate. However, the language of Government Code Section 37208 refers to payroll warrants or checks and makes no mention of the reporting required by Section 41004, which requires a report of “receipts, disbursements and general fund balances.” Moreover, the language of Government Code Section 37208 neither excuses a city from complying with Section 41004 nor makes any reference to Section 41004.
Further, the city erroneously noted that its Generally Accepted Accounting Principles (GAAP) policy on financial reporting excused noncompliance with Section 41004 reporting requirements.
In 2015, t he city adopted a “Financial Policy” that reads in part, “The city’s accounting and financial reports are to be maintained in accordance with GAAP. ” GAAP accounting does not address the Section 41004 mandated requirements.
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The Civil Grand Jury determined that the C ity of Los Altos does not produce t reasurer’s reports and thus is noncompliant.
Los Altos Hills
The Town of Los Altos Hills does not have an elected city treasurer. The town’s Municipal Code is silent on who performs the duties of the t reasurer; however, the Civil Grand Jury learned that the treasurer responsibilities fall to the director of administrative services.
The Civil Grand Jury received monthly treasurer ’s reports in June 2022. Upon inspection, however, they contained only disbursements and lacked receipts as well as fund balances; thus the reports are incomplete and noncompliant.
Los Gatos
The Town of Los Gatos does not have an elected city treasurer. The town’s Municipal Code Section 2.30.035 delegates the responsibility of the treasurer and the ability to assign those duties to the town manager. The director of finance is responsible for the town’s financial matters. The Town of Los Gatos produces quarterly reports, not monthly reports as required by Section 41004.
While the disbursements, receipts, and fund balances are in the reports, they must be published at least once each month to comply with Section 41004. Because the production intervals are quarterly, the Town of Los Gatos is not in compliance.
Milpitas
The City of Milpitas does not have an elected city treasurer. Milpitas Municipal Code section VI- 1-3.02 vests the duties of a city treasure r with the city manager, who is empowered to appoint a city treasurer pursuant to Section VI-1-3.04. In the City of Milpitas, the finance director produces weekly disbursement reports, quarterly receipt and investment reports for the general and special districts’ funds, and annual reports for all other reporting.
At the time of inquiry in June 2022, the Civil Grand Jury noted well -prepared reports. However, the frequency of report submission does not meet Section 41004 criteria, which requires monthly reports. Reports showing all receipts, disbursements, and fund balances must be filed with the city clerk at least once each month. Due to submission infrequency, the C ity of Milpitas is not in compliance.
Campbell
In November of 2010, voters in the C ity of Campbell approved Measure O, which changed the office of the city treasurer (and city clerk) from an elected to an appointed office. The City of
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Campbell’s Municipal Code is silent on who has officially assumed those duties.2 The Civil Grand Jury learned that the city’s finance director has the responsibilities of a treasurer and oversees the preparation of financial reports. The reports are prepared by the accounting clerk, reviewed by the finance manager and the finance director, and approved by the city manager for inclusion in the council packet.
At the time of inquiry in June 2022, 21 reports were submitted. The submitted documents had no payroll records and accounts payable balances with paid or disbursed funds. Additionally, the required information was not published at least once each month.
The City of Cam pbell’s submitted reports do not comply with S ection 41004 because disbursements, receipts, and balances are not filed at least once each month.
Monte Sereno
The City of Monte Sereno does not have an elected city treasurer. The Monte Sereno Municipal Code section 2.04.010 designates the c ity manager as the director of finance and tasks the c ity manager with “performing all duties of City treasurer as set forth in Government Code sections 41000 et seq.” At the time of inquiry in June 2022, six treasurer ’s reports were received by the Civil Grand Jury. While the reports did contain the required fund balances, the receipts and disbursements were not compliant with the Section 41004 requirement.
Compliant Cities
Cupertino
The City of Cupertino does not have an elected city treasurer. The City of Cupertino’s Municipal Code section 2.24.030 states:
The treasurer shall make monthly reports which conform to the requirements of Government Code Section 41004. Said reports shall be delivered to the City Council, city manager and made available for review by such other persons who may so request.
Until 2022, no staff member for the City of Cupertino had been preparing and delivering a monthly treasurer’s report to the Cupertino City council. However, during the Civil Grand Jury's
2 The City of Campbell’s Municipal Code does not appear to have been updated. The City of Campbell’s Municipal Code section 2.08.010 still states that the elected officers shall be those designated by general laws, which includes a city treasurer. Further, the code has other references to an elected city treasurer. (See Sections 2.16.040 [city treasurer compensation] and 2.16.010 [establishment of salaries].)
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investigation, the belated monthly t reasurer’s reports for January and February 2022 were published and placed on the Cupertino Audit Committee agenda.
The Civil Grand Jury recognizes the action taken by the City of Cupertino as soon as it was brought to their attention. The City of Cupertino is now compliant with Section 41004 as of March 2022, despite the stated history of not submitting the required reports.
Saratoga
The City of Saratoga does not have an elected city treasurer. The City of Saratoga Municipal Code section 2-20.035 states that the city manager shall serve as the city treasurer and be responsible for “other duties and responsibilities as required by law to be performed by the City Treasurer.” Thus, the city manager is responsible for the preparation and submission of monthly treasurer’s reports.
The Civil Grand Jury verified in June 2022 that regular monthly treasurer’s reports are filed with the City of Saratoga and are fully compliant with Section 41004. These reports can also be found by the public on the city’s website. An example is shown in Appendix A.
Morgan Hill
The City of Morgan Hill has an elected city treasurer. The treasurer, in conjunction with the finance director, prepares the treasurer’s reports.
The Civil Grand Jury verified in June 2022 that regular monthly treasurer’s reports are produced.
The reports contain all the required components of disbursements, receipts, and fund balances.
Thus, the C ity of Morgan Hill is compliant with Section 41004. A compliant Morgan Hill treasurer’s report is shown in Appendix A.
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CONCLUSION
Within the County, there is widespread noncompliance with California Government Code section 41004 by the general law cities. The Civil Grand Jury commends the cities of Saratoga and Morgan Hill for being in full compliance and notes the City of Cupertino’s quick action to become compliant. The Civil Grand Jury recommends that the noncompliant cities of Los Altos, Los Altos Hills, Los Gatos, Milpitas, Campbell, and Monte Sereno comply with Section 41004. This is to be done by producing treasurer’s reports at least once each month containing the required disbursements, receipts, and fund balance information. The benefit of implementing this recommendation overshadows any limited cost impact since existing staff could compile the report. In short , there is great benefit in producing these reports , as they improve financial transparency to the residents of the cities.
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FINDINGS AND RECOMMENDATIONS
It is recommended that noncompliant cities start producing treasurer’s reports as required by law.
Some cities produce abbreviated information that does not include requisite financial information as defined in state Government Code section 41004. Some cities produce requisite reports, but not on a monthly basis.
Finding 1
The City of Los Altos is not submitting monthly treasurer’s reports in compliance with California Government Code section 41004.
Recommendation 1
The City of Los Altos should comply with Government Code section 41004 by submitting monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances and by filing those reports with the city. This recommendation should be implemented by March 15, 2023.
Finding 2
The City of Los Altos does not produce t reasurer’s reports in compliance with California Government Code section 41004. The reason provided for non- compliance was that the City of Los Altos’ financial policy does not require the preparation and submission of treasurer’s reports.
It is an erroneous belief that internal policies excuse compliance with Government Code section 41004.
Recommendation 2
The City of Los Altos should amend its financial policy to require that monthly treasurer’s reports be prepared and submit ted in accordance with California Government Code section 41004 by March 15, 2023.
Finding 3
The Town of Los Altos Hills produces monthly treasurer’s reports but the content of those reports lacks monthly disbursements, receipts, and fund balances required by California Government Code section 41004.
Recommendation 3
The Town of Los Altos Hills shoul d update their existing monthly reports to include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 4
The Town of Los Gatos produced reports that contain the required content but does not produce the treasurer’s reports on a monthly basis as required by California Government Code section 41004.
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Recommendation 4
The Town of Los Gatos should produce its reports on a monthly basis to comply with California Government Code section 41004 by March 15, 2023.
Finding 5
The City of Milpitas does not produce monthly t reasurer’s reports as required by California Government Code section 41004.
Recommendation 5
The Civil Grand Jury recommends that the C ity of Milpitas comply with California Government Code section 41004 by producing monthly treasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 6
The City of Campbell does not produce monthly t reasurer’s reports as required by California Government Code section 41004.
Recommendation 6
The City of Campbell should comply with California Government Code section 41004 by producing monthly t reasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 7
The City of Monte Sereno does not produce monthly treasurer’s reports as required by California Government Code section 41004.
Recommendation 7
The City of Monte Sereno should comply with California Government Code section 41004 by producing monthly t reasurer’s reports that include monthly disbursements, receipts, and fund balances by March 15, 2023.
Finding 8
When the Civil Grand Jury began this investigation, the City of Cupertino was not in compliance with California Government Code section 41004. However, s tarting in March 2022, the C ity of Cupertino began producing treasurer’s reports compliant with Section 41004.
Recommendation 8
The City of Cupertino should maintain compliance with California Government Code section 41004. Continued compliance is recommended.
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Finding 9
The Civil Grand Jury commends the C ity of Saratoga for producing monthly treasurer’s reports that include disbursements, receipts, and fund balances. The City of Saratoga is in full compliance with California Government Code section 41004.
Recommendation 9
No recommendation.
Finding 10
The Civil Grand Jury commends the elected city treasurer for producing monthly t reasurer’s reports that include monthly disbursements, receipts, and fund balances. The City of Morgan Hill is in full compliance with California Government Code section 41004.
Recommendation 10
No recommendation.
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REQUIRED RESPONSES
Pursuant to California Penal Code section 933(b) et seq. and California Penal Code section 933.05, the Civil Grand Jury requests responses from the following governing bodies:
Responding Agency Findings Recommendations
City of Los Altos 1, 2 1, 2
Responding Agency Findings Recommendations
Town of Los Altos Hills 3 3
Responding Agency Findings Recommendations
Town of Los Gatos 4 4
Responding Agency Findings Recommendations
City of Milpitas 5 5
Responding Agency Findings Recommendations
City of Campbell 6 6
Responding Agency Findings Recommendations
City of Monte Sereno 7 7
Responding Agency Findings Recommendations
City of Cupertino 8 8
Responding Agency Findings Recommendations
City of Saratoga 9
Responding Agency Findings Recommendations
City Treasurer of Morgan Hill 10
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APPENDIX A: EXAMPLES OF COMPLIANT TREASURER’S
REPORTS
On the following pages are two examples of monthly treasurer’s reports that contain the required disbursements, receipts, and starting and ending f und balances and are therefore compliant with California Government Code section 41004. They are included to show that there are various names and formats that the reports may take. Following the examples are links to the full reports for ease of access.
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Example 1. Page 3 of 7 from Saratoga August 2022 Treasurer’s Report
https://legistarweb-
production.s3.amazonaws.com/uploads/attachment/pdf/1578630/Treasurer_Report_for_August_ 2022.pdf
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Example 2. Page 12 of 21 from Morgan Hill March 2022 Financial and Investment Report
https://www.morgan-hill.ca.gov/DocumentCenter/View/40944/March-2022-Financial-and- Investment-Report-PDF
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REFERENCES
Bibliography
Campbell City Council meetings: December 7, 2021-June 7, 2022. Regular agenda item from the Finance Department, titled Approving Bills and Claims. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meeting: February 1, 2022. Regular agenda item from the F inance Department, titled Investment Report – Quarter Ending December 2021. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meeting: May 3, 2022. Regular agenda item from the Finance Department, titled Investment Report – Quarter Ending March 2022. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meetings: December 7, 2021 – June 7, 2022. Regular agenda item from the Finance Department, titled Monthly Investmen t Transactions Report. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
Campbell City Council meeting: April 25, 2022, Study Session Meeting of the Campbell City Council. https://campbellca.gov/AgendaCenter/ (Accessed November 28, 2022).
City of Cupertino, A- Payments to Chamber Jan 2015- Mar 2022. Report, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
City of Cupertino Administrative Services Department Finance Division, Fiscal Year 2019- 2020 Comprehensive Annual Financial Report. https://cupertino.legistar.com/ (Accessed November 28, 2022).
City of Cupertino, Audit Committee meeting, May 23, 2022. https://cupertino.legistar.com/MeetingDetail.aspx?ID=923553&GUID=0C41F4A6-93D2-4B90- AAEB-7E5FF0F1EF8C&Search= (Accessed November 28, 2022).
City of Cupertino, B- Festivals – City Fees Waived & City Expenses. Report, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting , April 21, 2022: March 2022 Report of City -wide Fund Balances/Net Position. http://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting April 21, 2022: March 2022 Report of City -wide Receipts, Disbursements, and Cash Balances Cash Investments. htt p://cupertino.legistar.com/ (Accessed November 28, 2022).
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Cupertino City Council meeting, April 25, 2022. Administrative Services Department, Audit Committee Staff Report for March, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting, May 3, 2022. City Manager’s Office, City Council Staff Report. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino City Council meeting, May 19, 2022. Amended Agenda of the Cupertino City Council. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino Office of the City Clerk, Notice of Adjournment of the May 17, 2022. Notice, May 17, 2022. https://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino, Payment Register. Report, December 21, 2021. http://cupertino.legistar.com/ (Accessed November 28, 2022).
Cupertino, Resolution NO. 22- 015. Resolution, 2022. http://cupertino.legistar.com/ (Accessed November 28, 2022).
City of Lancaster, Excerpt from A Quick Summary for the Press and Researchers, https://www.cityoflancasterca.org/home/showpublisheddocument/10103/635775792210230000 (Accessed November 28, 2022).
Los Altos City Council meetings, Januar y, 2022 – May, 2022. Monthly Disbursement Listing. https://www.losaltosca.gov/calendar/month?field_microsite_tid=2131&field_microsite_tid_1=Al l (Accessed November 28, 2022).
Los Altos City Council meeting, May 24, 2022. Quarterly Investment Portfolio Report – Quarter Ended March 31, 2022. https://www.losaltosca.gov/citycouncil/page/city-council-meeting-155 (Accessed November 28, 2022).
Los Altos City Council meeting, March 8, 2022. Quarterly Investment Portfolio Report – Quarter Ended December 31, 2021. https://mccmeetingspublic.blob.core.usgovcloudapi.net/losaltosca- meet-419c5823741c494d9706451908d3061f/ITEM-Attachment-001- 0979a9a16c5c4dc898b8e8d7d4d4a6e1.pdf (Accessed November 28, 2022).
Los Gatos Town Council meeting, February 15, 2022. Second Quarter Investment Report (October through December 2021) for Fiscal Year 2021/22.
https://mccmeetings.blob.core.usgovcloudapi.net/losgatos-pubu/MEET-Packet- 94e86df454424b8b95ccc3f6eff96e41.pdf (Accessed November 28, 2022).
Los Gatos Town Council meeting, May 17, 2022. Third Quarter Investment Report (January through March 2022) for Fiscal Year 2021/22
https://mccmeetings.blob.core.usgovcloudapi.net/losgatos-pubu/MEET-Packet- 997ea555609c4af9b94eeb28b34fc7e3.pdf (Accessed November 28, 2022).
Monte Sereno City Council meetings: December 28, 2021 – June 3, 2022. Regular agenda item from the Finance Department submitting the monthly Treasurer’s Report. https://montesereno.civicweb.net (Accessed November 28, 2022).
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City of Morgan Hill Finance Division, Monthly Financial and Investment Reports . March 31, 2022. https://www.morgan-hill.ca.gov/DocumentCenter/View/40944/March-2022-Financial-and- Investment-Report-PDF (Accessed November 28, 2022).
City of Saratoga Administrative Services, Treasurer’s Report for the Month Ended August 31, 2022. Final Report, October 5, 2022. https://legistarweb- production.s3.amazonaws.com/uploads/attachment/pdf/1578630/Treasurer_Report_for_August_ 2022.pdf (Accessed November 28, 2022).
Solano County 2011-2012 Grand Jury, City Treasurer Functional Review . Final Report, January 12, 2012. https://solano.courts.ca.gov/wp-content/uploads/2020/01/111227-City-Treasurer- Final.pdf (Accessed November 28, 2022).
California Government Code Sections 34000 – 45345.
Los Gatos Municipal Code 2.30.035.
Milpitas Municipal Code VI-1-3.04.
Interviews
Interviews were conducted with 16 individuals between April 25, 2022, and June 16, 2022.
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This report was ADOPTED by the 2022 Santa Clara County Civil Grand Jury on this 14th day of December, 2022.
______________________________
Karen Enzensperger
Foreperson
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City
Council
Report
TITLE: Approval and Authorization to Purchase Five (5) New Police Ford Interceptor Utility Vehicles from Folsom Lake Ford, in an Amount Not to Exceed $382,400 by Way of the California E -Procurement Statewide Contract, and Authorization of a Budget Adjustment (Resolution/Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt a resolution authorizing the City Manager to execute a purchase agreement for five (5) Ford Hybrid Interceptor Utility Vehicles, including the installation of after -market equipment, through Folsom Lake Ford, in the not -to-exceed amount of $382,400, by way of the City’s use of the California e -Procurement Statewide Contract, and authorizing the Finance Director to execute a budget adjustment.
BACKGROUND
Each fiscal year, the Public Works Department plans, schedules, and budgets for the replacement of fleet vehicles and equipment that meet the City’s replacement criteria.
The City’s current vehicle replacement policy aligns with the American Public Works Association’s recommended replacement criteria. In some cases, staff will recommend deferring the replacement of a vehicle if it is still in good, serviceable condition and replacement parts are readily available. When a vehicle is replaced, all fleet vehicles, including police cars, are placed on a maintenance and replacement schedule upon purchase to balance annual fiscal impacts and provide safe, reliable, and effective vehicle operations in support of citywide services.
The City’s Police Department has a fleet of fourteen marked patrol vehicles that are used to provide 24/7 emergency police services across the City , and four un -marked police vehicles assigned to police administration. The current replacement criteria for marked police vehicles is five years or 80,000 miles , while the replacement criteria for un-marked vehicles is seven years or 75,000 miles.
Historically, the replacement schedule, availability, and reliability of thi s fleet has been problematic despite attempts to streamline the process. Many factors have played into these issues including the delay of replacements due to budgetary constraints, increased incidents of mechanical failures, downtime for repairs as vehic les continue to wait beyond their replacement schedule, and vehicle upfitting delays. These factors have led to a shortage of regularly available vehicles, and at times of increased Item: 9
Category: NEW BUSINESS
Meeting Date: February 21, 2023
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Authorization to Purchase Five (5) New Police Ford Interceptor Utility Vehicles Page 2 of 7 emergency staffing, have left officers without vehicles to respond to cal ls. It has also placed increased mileage and use on those vehicles that are available, thereby increasing the vehicle’s wear and tear and long-term maintenance costs.
To create more stability in the year -to-year budget, the City Council has expressed a desire to standardize the vehicle purchasing budget as it relates to the Police Vehicle fleet. However, the COVID -19 pandemic created additional budgetary constraints that needed to be considered while staff worked to identify ways to maintain a fully functional vehicle fleet. In recent years, significant supply chain delays have also made the purchase and delivery of fleet vehicles unreliable and further complicated. In some circumstances, vehicles have taken more than a year from point -of-order to deliver y.
These delays have prompted staff to evaluate the replacement schedule of older fleet vehicles and adjust ordering timelines to better reflect estimated delivery dates based on information provided by the vehicle manufacturer.
In June 2021, staff began research to identify different funding mechanisms and purchasing strategies to improve the City’s overall vehicle procurement process and mitigate the long -term costs associated to potential manufacturing delays. As such, staff identified the California e-Procurement Statewide Contract as a timely and efficient funding mechanism to facilitate the City’s procurement process and purchase of new fleet vehicles. The California e-Procurement Statewide Contract provides government agencies with access to pre -qualified (i.e., already vetted) vendors offering goods and services to public agencies at discounted and/or competitive rates. By using the California e-Procurement Statewide Contract , the City could dispense with its standard bidding procedures when the City Council, by a majority vote, determines that it is in the best interest of the public to dispense with the requirements of Section 3.20.050 of the Municipal Code, in which case the City Council shall prescribe the appropriate method of purchase. Furthermore, Section 3.20.070 of the Municipal Code authorizes the City to make purchases of supplies, materials and equipment through the State of California, the County of Santa Clara or any other California county or municipality. Since the California e-Procurement Statewide Contract is a State -sponsored contract, the City is authorized to make purchases directly through i ts use and expedite the procurement process under those exemptions granted.
At the same time, staff identified two different purchasing strategies that presented timely and cost-effective options for the City to consider. The first strategy was the Ford Credit Municipal Finance leasing program, which assists public agencies with the replacement of older, less -effective vehicles in their respective fleets. This program allows municipal agencies to acquire vehicles without having to incur major cash outlays or long -term debt obligations. This financing option allows an agency to spread the costs of these vehicles over a fixed number of fiscal years.
The second strategy was the outright purchase of the replacement vehicles through an authorized Ford dealership (Folsom Lake Ford). This option would allow the City to purchase the vehicles by way of a one -time, lump -sum payment; thereby avoiding additional interest costs typically accrued over time as part of the payment terms of a traditional financing agreement. While this was a more straightforward option, the City 9 Packet Pg. 113
Authorization to Purchase Five (5) New Police Ford Interceptor Utility Vehicles Page 3 of 7 would need to consider any fiscal impacts associated with a one-time purchase that had the potential to create any long-term budgetary constraints.
Furthermore, staff would place the ini tial vehicle order with Folsom Lake Ford, who in turn, would act as a liaison between the manufacturer and the City - providing updates to staff regarding the status of production and expected delivery. In addition, Folsom Lake Ford recognizes the Califor nia e-Procurement Statewide Con tract and accepts purchases made by public agencies through use of th at contract. This would also extend any discounts or promotions offered by Folsom Lake Ford to agencies participating in the use of the contract for their procurement of goods and/or services.
With the City’s use of the Statewide contract, Folsom Lake Ford would apply discounts to the bottom-line manufacturing prices and allow the City to select whatever purchasing method it preferred to pay for the related costs at the time of delivery.
In the end, staff recommended the purchase of the five new Ford Interceptors by way of the California e -Procurement State Contract (Contract ID 1 -18-23-14B) and the five - year financing plan offered through Ford Credit M unicipal Finance (FCMF) to help the City accomplish several of its vehicle replacement goals over time. With this financing plan, payments would be made yearly and fixed for the term of the contract. Eventually, financing the entire fleet through this method would smooth-out (normalize) year-to-year fleet replacement costs, providing the City with more predictable budget expenses. 9 Packet Pg. 114
Authorization to Purchase Five (5) New Police Ford Interceptor Utility Vehicles Page 4 of 7 Proposed Purchasing Options (2021)
On June 15, 2021, the City Council approved Resolution No. 12736, authorizing the procurement of five (5) new marked patrol cars, funded by the City’s FY 2022 Operating Budget, and use of the California State e-Procurement Contract to finance the purchase through FCMF over the terms of a 5-year lease. Per these terms, the City would pay an amount not-to-exceed $81,713 annually, at an interest rate of 4.4%, for a total cost of $408,565 over five years. Annual payments would cover the associated manufacturing costs, aftermarket upgrades, and delivery of all five vehicles to an authorized Ford location.
Following Council’s authorization, staff finalized and submitted the order to Folsom Lake Ford for the five marked police vehicles. Although manufacturing delays were expected, staff worked quickly to expedite its own role in the procurement process to avoid prolonging these anticipated delays. Staff was also preparing for the possibility of the vehicles arriving earlier than expected should manufacturing issues subside, and production times return to normal.
Ford Credit
Municipal Finance
Outright Purchase
(Folsom Lake Ford)
Unit Price Per Vehicle
(Includes upgrades, taxes, fees) $75,000 $75,000
Beginning Total Asset Cost
(Unit Price x 5 Vehicles) $375,000 $375,000
Underwriting Fee $545 N/A
Amount Financed $375,545 N/A
Total # of Payments 5 1
Payment Timing Annual One-time
Interest Rate 4.4% N/A
Annual Payment Amount $81,713 N/A
Total Due Now (at time of delivery) $0 $375,000
Total Cost at End of (5) Years $408,565 N/A
Additional Financing Costs Paid
Over the 5-Year Agreement
(vs. Outright Purchase)
$33,565
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Authorization to Purchase Five (5) New Police Ford Interceptor Utility Vehicles Page 5 of 7 Regardless of production complications, the financing terms with FCMF would also be subject to change (re -calculated) pending significant economic developments between time of order and eventual delivery. Staff was aware and prepared for an increase in prices and/or interest rates as the economy is in a constant state of fluctuation and this is to be expected. While the City would begin issuing payments only upon delivery of the vehicles, those payments would be re -calculated upon delivery and based on current market values. The City would commence financing per the new rates and prices issued by FCMF upon delivery and disregard any previous terms issued prior to that latest adjustment (i.e., the prices and rates from th e 2021 breakdown would no longer be valid). As such, should the original finance terms significantly increase by the time of delivery, staff will re -evaluate the related fiscal impacts on the City’s current budget and implement a different purchasing strategy as needed.
DISCUSSION
In mid -2022, the estimated delivery date for the new vehicles (with aftermarket upgrades) was early 2023. This update prompted staff to contact both FCMF and Folsom Lake Ford for the new prices and rates to be expected upon de livery. With the new rates, staff would analyze the fiscal impacts to the City’s current budget and compare them to the results generated by the proposed figures in 2021. In November 2022, staff requested and received an updated agreement from FCMF with the new rates and terms currently in effect for the five -year financing plan. Staff also contacted Folsom Lake Ford who proceeded to provide a similar breakdown of their updated rates and pricing as related to the outright purchase option.
Considering s ubstantial fluctuations in the economy throughout the past 18 months, staff was prepared to see an increase in pricing and rates from the two purchasing options proposed. Even so, the new figures for the five -year financing plan offered by FCMF displayed a significant variance when compared to the original proposal. Within this 18 -month timeframe (June 2021 to December 2022), there was a significant increase in the annual interest rate (4.4% to 8.04%) and overall cost differential at the end of the five-year term increased from $408,565 to $444,335. There was also a price increase of approximately $8,000 to the outright purchase total with Folsom Lake Ford (from $375,000 to $382,400). However, the difference between the outright purchase totals (increase of approximately $8,000) was still significantly less than the difference in the total cost paid by the City at the end of the five -year financing term ( which is now estimated at $61,935). Per current market conditions, the updated pricing and rates for each purchasing option are now summarized as follows:
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Authorization to Purchase Five (5) New Police Ford Interceptor Utility Vehicles Page 6 of 7 Updated Proposed Purchasing Options (2022)
The increases related to both purchasing options provided staff with a real-time example of how quick and impactful the recent supply chain demands, and material shortages, can impact City operations. Although staff previously intended to purchase the vehicles by way of the five-year financing plan through FCMF, the updated pricing and interest rates will have more significant fiscal impacts to both short-term and long- term costs for the City. To avoid creating unnecessary budgetary constraints from the five-year financing plan (based on the higher interest rate and additional cost accrued over time), staff is now recommending the outright purchase of the five new police vehicles from Folsom Lake Ford per the current pricing breakdown provided to the City.
However, for this to occur, Council must also approve a budget adjustment. Funding up to $75,000 is available and planned for in the FY 2023 Adopted Budget for the Motor Pool Fund (Fund 641). The remaining $307,400 can be supported by the General Fund (Fund 101) and is included within the mid-year fiscal update to be considered during the same meeting as this item.
Ford Credit
Municipal Finance
Outright Purchase
(Folsom Lake Ford)
Unit Price Per Vehicle
(Includes upgrades, taxes, fees) $76,480 $76,480
Beginning Total Asset Cost
(Unit Price x 5 Vehicles) $382,400 $382,400
Underwriting Fee $545 N/A
Amount Financed $382,945 N/A
Total # of Payments 5 1
Payment Timing Annual One-time
Interest Rate 8.04% N/A
Annual Payment Amount $88,867 N/A
Total Due Now (at time of delivery) $0 $382,400
Total Cost at End of (5) Years $444,335 N/A
Additional Financing Costs Paid
over the 5-Year Agreement
(vs. Outright Purchase)
$61,935
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Authorization to Purchase Five (5) New Police Ford Interceptor Utility Vehicles Page 7 of 7
FISCAL IMPACT
Costs associated with the recommended action are in the amount of $382, 400.
Funding up to $75,000 is available and planned for in the FY 2023 Adopted Budget for the Motor Pool Fund (Fund 641). The remaining $307 ,400 can be supported by the General Fund (Fund 101) and is included within the mid -year fiscal update to be considered during the same meeting as this item.
ALTERNATIVES
1. Approve the outright purchase and fund with an alternative funding source. This would require an alternate budget adjustment.
2. Proceed with original five-year payment plan under the updated financing terms from Ford Credit Municipal Finance. No budget adjustment would be required at this time. However, the increase in costs would be re flected in the proposed Operating Budget for FY 2024.
Prepared by:
Carina Shattuck, Administrative Analyst I
Reviewed by:
Todd Capurso, Director of Public Works
Approved by:
Angelique Gaeta, Assistant City
Manager
Attachment:
a. Resolution
9 Packet Pg. 118
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
AUTHORIZING THE PURCHASE OF FIVE NEW FORD INTERCEPTOR UTILITY
VEHICLES FROM FOLSOM LAKE FORD, IN AN AMOUNT NOT TO EXCEED $382,400, BY WAY OF THE CALIFORNIA STATE e-PROCUREMENT CONTRACT;
AND AUTHORIZING A BUDGET ADJUSTMENT
WHEREAS, On June 15, 2021, the City Council approved Resolution No. 12736, authorizing the procurement of five (5) new marked patrol cars, funded by the City’s F Y 2022 Operating Budget, with use of the California State e-Procurement Contract to finance the purchase through Ford Credit Municipal Finance ( FCMF) over the terms of a 5 -year lease; and
WHEREAS, per the terms of the agreement and pricing provided by FCMF at the time, the City would pay an amount not-to-exceed $81,713 annually, at an interest rate of 4.4%, for a total cost of $408,565 over five years; and
WHEREAS, upon Council’s approval, staff placed the order for the five vehicles with Folsom Lake Ford, by way of the California State e-Procurement Contract and discounts offered to agencies using the contract for procurement of goods and/or services; and
WHEREAS, staff was aware that regardless of manufacturing delays, the financing terms with FCMF would also be subject to change (re -calculated) pending significant economic developments between time of order and eventual delivery of the vehicles; and
WHEREAS, the City would commence payments under any new rates and terms issued by FCMF in effect at the time of delivery; and
WHEREAS, the revised five-year financing plan offered by FCMF displayed a significant increase in the annual interest rate (4.4% to 8.04%) and overall cost differential at the end of the five-year term ($408,565 to $444,335); and
WHEREAS, to avoid the payment of additional financing charges resulting from the updated financing terms provided by FCMF, staff is now recommending the outright purchase of the five police vehicles from Folsom Lake Ford , in an amount not to exceed $382,400, by way of the California State e -Procurement Contract and updated pricing provided to the City; and
WHEREAS, funding up to $75,000 is available and planned for in the FY 2023 Adopted Budget for the Motor Pool Fund (Fund 641) and the remaining $307,400 can be supported by the General Fund (Fund 101) via a budget adjustment; and
WHEREAS, for this to occur, the City Council must grant authorization for a budget adjustment reflecting the updated purchasing strategy proposed by staff.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell approves the outright purchase of five (5) new Ford Interceptor Utility Vehicles from Folsom
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Attachment: Resolution (Authorization to Purchase Five (5) New Police Ford Interceptor Utility Vehicles)
Lake Ford, in an amount not to exceed $382,400, by way of the City’s procurement through the California State e-Procurement Contract, and updated pricing provided by Folsom Lake Ford.
BE IT FURTHER RESOLVED that the City Council hereby authorizes a budget adjustment to proceed with the outright purchase of the five new police vehicles from Folsom Lake Ford (as opposed to the original five-year financing plan offered by FCMF), funded by the one-time use of the City’s General Fund and Motor Pool Fund for the related purchase.
PASSED AND ADOPTED this 21st day of February 2023, by the following roll call vote:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
APPROVED:
________________________
Anne Bybee, Mayor
ATTEST:
____________________________
Andrea Sanders, City Clerk
9.a
Packet Pg. 120
Attachment: Resolution (Authorization to Purchase Five (5) New Police Ford Interceptor Utility Vehicles)
City
Council
Report
TITLE: Economic Development Strategy Workplan
RECOMMENDED ACTION
That the City Council receive the report regarding an overview of the Economic Development Strategy Workplan.
BACKGROUND
At the June 7, 2022, City Council meeting, upon the recommendation of the Economic Development Sub -committee, Council approved combining a short -term Economic Development Strategy that would focus on addressing commercial va cancies with a comprehensive update to the City's Economic Development Plan. The City issued a Request for Proposals (“RFP”) on September 16, 2022 from qualified firms to prepare an economic development strategy and the City Manager was authorized to ex ecute a contract with the selected service provider in an amount not to exceed $200,000.
Proposals were received from four firms. An interview panel comprised of the Assistant City Manager, the Directors of Community Development and Finance, the Economic Development Manager, an Administrative Analyst, and the Economic Vitality Manager from the City of Mountain View selected Chabin Concepts, located in Chico, California (https://www.chabinconcepts.com/) to de velop the City’s economic development strategy.
Chabin’s core business service is economic development. The firm has completed strategies and plans for public sector clients such as Fairfield, Benicia, Dublin, Merced, Chico, Vallejo, and Vacaville as w ell as numerous communities and public agencies throughout the country. In addition to Audrey Taylor, President of Chabin Concepts, the consulting team includes:
• Christine Firstenberg, principal of Retail Real Estate Resources (RRER).
Christine has worked with several cities in the region on retail plans, retail market assessment and is also a practicing real estate broker which will help address challenges and opportunities in City’s retail and office sector. • Brian Curtis and Frank Roccio, principals o f Lone Fir Creative, a marketing and branding firm with experience creating campaigns for public agencies and communities.
Item: 10
Category: UNFINISHED BUSINESS
Meeting Date: February 21, 2023
10 Packet Pg. 121
Economic Development Strategy Overview Page 2 of 4
• Thatch Moyle, principal of Urban Scenarios, a planning firm with expertise in land development, master planning, GIS modeling and a nalysis and 3D visualization.
DISCUSSION
Project Workplan
Phase I of the strategy development will address the City’s short -term priority concerning vacancies in retail and office space. This effort includes a detailed assessment of available space and properties to identify leasing challenges and opportunities and a sales tax leakage analysis to identify any gaps, weaknesses and opportunities for locating sales and use tax generators currently not located in the City.
Phase II will entail a comprehens ive update to the City’s Economic Development plan.
It will include an economic “Strength, Weaknesses, Opportunities and Threats” (SWOT) analysis of the three key market sectors listed below which comprise a city’s economy:
• The traded sector market comprised of businesses that provide goods and services to customers outside the region and is a strong source of city revenue;
• The population-driven market comprised of businesses that provide goods and services to residents. This sector circulates the same d ollars (earned and spent) but is still very important to the local economy; • The visitor-serving market consisting of venues and businesses that attract or serve visitors, e.g., hotels, destination attractions and shopping opportunities.
The Chabin team wi ll also review the historic and current performance of general fund tax revenues and complete a competitive analysis of the City as a preferred location for existing and new businesses. The latter will also assess the City’s current economic development program focusing on the relevance and effectiveness of business assistance, activities, tools, and resources.
The work will inform potential changes in land use policies that may affect supply and demand trends (i.e., conversion of commercial and industri al space for housing) and support streamlined permitting of identified commercial and industrial uses desired in the City. The longer -term assessment will include a City -wide branding and visioning process that that will result in a plan for future implementation.
The final deliverable is an updated economic development strategy and plan that cohesively incorporates all the information and deliverables produced in Phase I and Phase II. It includes an action plan to address retail and office vacancies a nd a longer- term, updated economic development plan for achieving the City’s priority economic goals, an implementation schedule, and recommendations for aligning and 10 Packet Pg. 122
Economic Development Strategy Overview Page 3 of 4
strengthening the City’s economic development program with the new strategy. Finally, the strategy will provide a detailed plan for launching a branding campaign for the City.
Community and Stakeholder Outreach
The strategy process includes extensive outreach to businesses, residents and other stakeholders including
• focus groups,
• interviews
• a community survey;
In addition, the process will include c reation of an advisory committee that will have representation from the Chamber of Commerce and Downtown Campbell Business Association, different economic sectors in the city, property owners, residents, and the real estate community . The advisory committee will act as a guidepost and sounding board for the strategy team’s work.
Staff and the consulting team will provide updates to the Council’s Economic Development Sub -Committee and Council a t appropriate milestones during development of the strategy , including a branding and visioning study session with Council, planning commission and the advisory committee.
Timeframe
Staff estimates the strategy will take a minimum of eight months to twel ve months to complete.
FISCAL IMPACT
Chabin’s budget for the strategy development is $200,000, the amount approved by the City Council and allocated in the FY 2023 -24 budget. Overall, the strategy is expected to have a fiscal benefit to the City as it will identify strategies to support economic development and the fiscal health of the city. Any specific actions resulting from the implementation of the economic development strategy and plan that has fiscal impacts will be disclosed in the future.
Prepared by:
Leslie Parks, Economic Development
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Economic Development Strategy Overview Page 4 of 4
Reviewed by:
Rob Eastwood, Community
Development Director
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Chabin Concepts - Strategy Update 2-3-2022
b. Consultant Service Agreement - Chabin Concepts
10 Packet Pg. 124
Chabin Concepts, Inc. 530.345.0364 voice . 2550 Lakewest Dr, Suite 10 Chico, CA 95973 . www.chabinconcepts.com Page | 1
Project: Campbell Economic Development Strategy Update
Date: February 3, 2023
PROJECT INITIATION
▪ Confirm deliverables, timeline, or tasks (review following pages) ▪ Kick-off Council, Feb 21 – Zoom Presentation (expectations, time) ▪ Base Camp for managing project – web portal.
PROJECT INFORMATION REQUEST
▪ Roster for public engagement via Zoom, in person community sessions, e-surveys, interviews ▪ City Council
▪ Advisory Council
▪ City’s Economic Development Sub-Committee
▪ City Managers
▪ Department Managers to meet with
▪ Key Businesses
▪ Chamber, Downtown & other business groups
▪ Workforce Development
▪ Tourism, Visitor Group
▪ Developers, Brokers (commercial and industrial)
▪ Upload to Base Camp information, reports, studies, or other relevant materials for our review including but not limited to:
▪ General Plan
▪ Specific Plans
▪ Housing Studies, Plans
▪ Transportation Studies, Plans
▪ Capital Improvement Projects
▪ Economic & workforce development
▪ Retail, downtowns
▪ Website analytics
▪ Items to be sure to align with in General Plan and/or existing Economic Development Plan ▪ Sensitive areas with community
▪ Council priorities
▪ List of any capital or development projects underway or pending Team calls, status updates, and other administrative items:
▪ Internal team meeting every other week.
▪ Suggest once per month with City Team
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Attachment: Chabin Concepts - Strategy Update 2-3-2022 (Economic Development Strategy Overview)
Chabin Concepts, Inc. 530.345.0364 voice . 2550 Lakewest Dr, Suite 10 Chico, CA 95973 . www.chabinconcepts.com Page | 2
PHASE I TEAM/CITY FEB MAR APR MAY JUN JULY AUG SEP OCT
Deliverables:
▪ Economic Scan
▪ Tax Revenue
▪ Property Analysis
▪ Competitive Analysis
▪ Real Estate – Story Map start
Team/City Kick Off
City Council Kick Off – Zoom
All Team
Audrey, Project Lead
2/3
2/21
Initial Review
1. 2017 Economic Development Plan. Identify what has
been completed, what is currently happening, and
identify new initiatives or challenges not covered by the plan. Discuss who did implementation (past and
current) i.e., staff and/or partners.
2. Review with staff and with Advisory Council what
components should remain and what are priorities in
today’s venue.
All Team
Schedule Zoom call with staff
Key staff we will be working
with to get information?
City – do you want early
meetings with Advisory Council
– are they selected?
Can sub-committee be
incorporated into Advisory mtg?
GIS connection at City, access,
CoStar Report – GIS?
Review Items Identified during Proposal Research
3. City’s economic development team and Business
Concierge process and services—who is involved, what
are the activities, roles and responsibilities?
4. Review any identified prime opportunities sites for
development.
5. Review properties that will be proposed to convert from an existing use to housing to meet state mandated RHNA
requirements.
6. Results of the small business survey on the city’s
website.
7. ED Department service fact sheets on the website—
programs and services noted as business attraction,
All Team/Economic
Development Manager
Included in initial Zoom call or
schedule second call.
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Attachment: Chabin Concepts - Strategy Update 2-3-2022 (Economic Development Strategy Overview)
Chabin Concepts, Inc. 530.345.0364 voice . 2550 Lakewest Dr, Suite 10 Chico, CA 95973 . www.chabinconcepts.com Page | 3
PHASE I TEAM/CITY FEB MAR APR MAY JUN JULY AUG SEP OCT
recognition, just because and vacant storefront window
treatment—how are these used, updated?
8. How does the city work with the technology businesses that are highlighted on website,
https://campbellca.gov/1039/Technology-in-Campbell
to ensure they stay and grow in Campbell?
9. Review traffic to the Economic Development website
page.
Review all tax Revenue.
10. Property, sales and use, utility, franchise, business, TOT, supplemental, construction development—and any
other tax generated by economic activity.
Christine
City to provide tax data from
their consultant. Details need
from Team. Est time when city
can provide?
City Tour
11. Tour economic centers with city staff.
All Team
Start Stakeholder Engagement
Advisory Committee-Outline our
scope; Input Session, others
to engage?
Schedule 4 days? Arrive
Monday, tour Tuesday, AC
Wednesday, briefing to staff.
Who will help organize? Can
city set up?
CF
2/17
Land Use Policies and Specific Plans
12. Review land use policy and direction to understand
potential changes to land use policy accounting for
current supply and demand trends (i.e., land conversions to housing).
13. Review specific plan overlays—Hamilton Avenue and
special planning areas—Pruneyard/Creekside District,
North of Campbell Avenue (NOCA) District, South of
Campbell (SOCA) District, Winchester Blvd Master Plan.
14. Identify sub-market impacts, positive and negative.
Christine & Thatch
Schedule Zoom call and during
onsite
Opportunity Sites
Review opportunity sites identified by the City and the Advisory Committee and areas identified in General Plan, Christine & Thatch
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Attachment: Chabin Concepts - Strategy Update 2-3-2022 (Economic Development Strategy Overview)
Chabin Concepts, Inc. 530.345.0364 voice . 2550 Lakewest Dr, Suite 10 Chico, CA 95973 . www.chabinconcepts.com Page | 4
PHASE I TEAM/CITY FEB MAR APR MAY JUN JULY AUG SEP OCT
such as transit-oriented and mixed-use. Development near the light rail station in Downtown Campbell (LU 5.5)
Should this be discussed
reviewed with Advisory Council?
Incorporate above.
WORKING PAPERS
Current Conditions – Retail (Deliverable) Christine
Current Conditions – Office (Deliverable) Christine
Current Conditions – Industrial (Deliverable) Thatch & Audrey Competitive Assessment & Economic Scan
(Deliverable)
Audrey
Set up of StoryMap – Real Estate Inventory (GIS Map)
Branding – Image Research (Working Paper) Brian & Michael Stakeholder Engagement – Interviews, Meetings,
Survey
All Team
Need list from City.
Key organizations, businesses
Internal/external survey?
workers, businesses
If so schedule to determine
information to obtain, best
method.
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Attachment: Chabin Concepts - Strategy Update 2-3-2022 (Economic Development Strategy Overview)
Chabin Concepts, Inc. 530.345.0364 voice . 2550 Lakewest Dr, Suite 10 Chico, CA 95973 . www.chabinconcepts.com Page | 5
PHASE II TEAM/CITY FEB MAR APR MAY JUN JULY AUG SEP OCT Deliverables
▪ Update SWOT-Finding Report
▪ List of Priorities
▪ Goals & Objectives
▪ Results of Branding Work Session
Meetings
The Consulting Team will work with City staff to schedule several meetings with the:
▪ Advisory Committee,
▪ City’s Economic Development Sub-Committee
▪ Council (TBD by City/Consultant).
These meetings are critical to setting the path for preparing an Economic Development Plan. Phase II has extensive
engagement with stakeholders.
Advisory Committee
Sub-Committee
Council – Update?
Meeting with Planning
Commission?
Meeting with external ED
Professionals?
Advisory Committee Work Session
The Team will facilitate an Advisory Committee Work
Session to set the stage for an economic development
strategic process and implementation of the final plan
Work Session
Will Advisory Committee also be
work group for branding?
Schedule same day.
Commercial Brokers
Engage with the commercial brokers who have retail listings in Campbell and review their marketing materials for retail location criteria relevance.
Christine
Chamber of Commerce
Make presentation to the Chamber of Commerce. As a
leading community organization, we will want to identify opportunities for the Chamber to take a role in the
engagement and outreach to members and residents
Audrey & Brian
Outreach
15. With staff identify other organizations that should be engaged in discussions.
16. Discuss possible surveys to obtain resident and business input and structure of a survey if that is a goal.
Downtown
17. Meet with Downtown stakeholders to understand the
status and management of Downtown based on
Christine & Audrey
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Attachment: Chabin Concepts - Strategy Update 2-3-2022 (Economic Development Strategy Overview)
Chabin Concepts, Inc. 530.345.0364 voice . 2550 Lakewest Dr, Suite 10 Chico, CA 95973 . www.chabinconcepts.com Page | 6
PHASE II TEAM/CITY FEB MAR APR MAY JUN JULY AUG SEP OCT General Plan Land Use policy, goals for Downtown,
implementation of Farmers’ Markets, and community
and cultural events.
Branding Work Sessions
18. Facilitate a half-day branding workshop with the
Advisory Committee, Economic Development
Subcommittee, Council members and other key
stakeholders to discover the city’s DNA, brand
positioning, values, plans and desired representation.
Based on those insights, and research conducted in Phase I, a guiding document for the brand is created and brought back to the Workshop Group for review.
MC2
Schedule with Advisory
Workshop
Does meeting with Council need
to be separate.
Schedule second meeting or
Zoom?
Do Planning Commissioners
attend?
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Attachment: Chabin Concepts - Strategy Update 2-3-2022 (Economic Development Strategy Overview)
Chabin Concepts, Inc. 530.345.0364 voice . 2550 Lakewest Dr, Suite 10 Chico, CA 95973 . www.chabinconcepts.com Page | 7
PHASE III TEAM/CITY FEB MAR APR MAY JUN JULY AUG SEP OCT Phase III is taking all the information in Phase I and II and finalizing documents. This will include
meetings with staff.
Deliverables
▪ Updated 2023-28 ED Plan & Implementation Schedule
▪ Action plan focused on Commercial Vacancies
▪ Website Story Map
▪ Branding Strategy
All Team Members
Work Session Advisory Committee
Can this be Advisory Committee
and Sub-Committee? Or need
to be separate?
Presentation to City Council
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Attachment: Consultant Service Agreement - Chabin Concepts (Economic Development Strategy Overview) City
Council
Report
TITLE: Approve Appointments to the Parks & Recreation Commission
RECOMMENDED ACTION
That the City Council approve the recommendation of the Advisory C ommissioner Appointment Interview Subcommittee regarding appointments to the Parks & Recreation Commission for two four-year terms expiring December 2026.
BACKGROUND
Pursuant to Council Policy No. 1.9b regarding Advisory Commission Reappointments, current Commissioners were notified of their term expiration and notices of the upcoming vacancies were posted at City Hall, the temporary Campbell Library location and on the City’s website for a minimum of 60 days . Several social media posts were made to encourage interested individuals to apply.
Parks & Recreation Commission : The terms of Sharon Teeter and Liraz Abraham expired on December 31, 2022. Sharon Teeter submitted a request for reappointment and Liraz Abraham did not seek reappointment. One new app lication to serve was received by the City Clerk’s Office.
DISCUSSION
The Advisory Commissioner Appointment Interview Subcommittee ( Councilmember Furtado and Vice Mayor Landry) met on February 9, 2023 and interviewed two applicants (Sharon Teeter and Ti na Lee) to fill the two four-year terms available on the Parks & Recreation Commission . The Advisory Commissioner Appointment Interview Subcommittee will report on the interviews and make recommendations regarding the appointments to the Parks & Recreation Commission.
FISCAL IMPACT
There is no fiscal impact as serving on this advisory commission is an unpaid position.
Item: 11
Category: COUNCIL COMMITTEE
REPORTS
Meeting Date: February 21, 2023
11 Packet Pg. 162
Approve Appointments to the Parks & Recreation Commission Page 2 of 2 Prepared by:
Andrea Sanders, City Clerk
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Applications
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Attachment: Applications (Approve Appointments to the Parks & Recreation Commission)
CITY OF CAMPBELL
70 N. FIRST STREET
CAMPBELL, CA 95008-1423
APPLICATION FOR APPOINTMENT AS
__________________________________________________________
REQUIREMENTS:- Campbell resident and at least 18 years of age.
Name _______________________________________________________________________
Address _____________________
Telephone No: Home ork _______________ Email
Have you served in a similar capacity previously? Yes _____ No _______
If "Yes", give name of City or other jurisdiction:
____________________________________________________________________________
Present Occupation __________________________________________________________ (Give Title)
Name and Address of Present Employer (If employed)
____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________
Education: High School _____________________________________________________
College _________________________________________________________
Degree(s) Obtained ________________________________________________
What is your specific interest in this appointment?
____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________ ____________________________________________________________________________
Signature _______________________________________ Date _______________________
Rev. 12/10
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City
Council
Report
TITLE: Council Committee Reports
RECOMMENDED ACTION
That the City Council report on activities from their committee assignments.
DISCUSSION
This is t he section of the City Council Agenda that allows the City Councilmembers to report on items of interest and the work of City Council Subcommittees.
MAYOR BYBEE
Cities Association of Santa Clara County:
Board Representative
Legislative Action Committee and City Selection Committee City Attorney Performance/Compensation Subcommittee
City Clerk Performance/Compensation Subcommittee
City Manager Performance/Compensation Subcommittee
Finance Subcommittee
Friends of the Heritage Theater Liaison
Legislative Subcommittee
Silicon Valley Animal Control Authority Board (SVACA)
West Valley Mayors and Managers
VICE MAYOR LANDRY
Advisory Commissioner Appointment Interview Subcommittee City Attorney Performance/Compensation Subcommittee
City Clerk Performance/Compensation Subcommittee
City Manager Performance/Compensation Subcommittee
Education Subcommittee
Economic Development Subcommittee
Santa Clara Valley Water District County Water Commission Santa Clara County Library District JPA Board of Directors
West Valley Clean Water JPA (Alt.)
West Valley Solid Waste Authority JPA (Alt.)
West Valley Mayors and Managers (Alt.)
Item: 12
Category: COUNCIL COMMITTEE
REPORTS
Meeting Date: February 21, 2023
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Council Committee Reports Page 2 of 3
COUNCILMEMBER FURTADO
Advisory Commissioner Appointment Interview Committee
DCBA Liaison
Silicon Valley Regional Interoperability Authority (SVRIA) West Valley Clean Water JPA
West Valley Sanitation District
West Valley Solid Waste Authority JPA
Association of Bay Area Governments (Alt.)
Silicon Valley Animal Control Authority Board (SVACA) (Alt.) Valley Transportation Authority Policy Advisory Committee (Alt.)
COUNCILMEMBER LOPEZ:
Association of Bay Area Governments
Bay Area Quality Management District Board of Directors** Economic Development Subcommittee
Finance Subcommittee
League of Cities Peninsula Division Executive Committee** Legislative Subcommittee
Santa Clara County Housing and Community Development Advisory Committee Silicon Valley Clean Energy Finance and Audit Committee Valley Transportation Authority Board of Directors**
Campbell Historical Museum & Ainsley House Foundation Liaison (Alt.) Cities Association of Santa Clara County:
Board Representative (Alt.)
Legislative Action Committee and City Selection Committee (Alt.) Friends of the Heritage Theater Liaison (Alt.)
Santa Clara Valley Water District: County Water Commission (Alt.) Silicon Valley Clean Energy JPA Board of Directors (Alt.) West Valley Sanitation District (Alt.)
COUNCILMEMBER SCOZZOLA
Campbell Historical Museum & Ainsley House Foundation Liaison Education Subcommittee
Silicon Valley Clean Energy JPA Board of Directors
Valley Transportation Authority Policy Advisory Board
DCBA Liaison (Alt.)
Santa Clara County Housing and Community Development Advisory Committee (Alt.) Santa Clara County Library District JPA Board of Directors (Alt.)
**appointed by other agencies
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Council Committee Reports Page 3 of 3
Prepared by:
Andrea Sanders, City Clerk
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