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 abo ut joining the meeting. 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, June 6, 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
1. Presentation by the Youth Commission Regarding 2022 -2023 Work P lan Accomplishments
Recommended Action: Receive the Campbell Youth Commission presentation.
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.
2. Minutes of City Council Study Session Meeting of April 25, 2023 Recommended Action: Approve the study session meeting minutes of April 25, 2023.
3. Minutes of City Council Executive Session Meeting of May 16, 2023 Recommended Action: Approve the executive session meeting minutes of May 16, 2023.
4. Minutes of City Council Regular Meeting of May 16, 2023 Recommended Action: Approve the regular meeting minutes of May 16, 2023.
5. Approving Bills and Claims
Recommended Action: Approve the bills and claims in the amount of $2,457,605.58.
6. Monthly Investment Transactions Report (April 2023)
Recommended Action: That the City Council review and accept the Monthly Investment Transactions Report for April 2023.
7. Monthly Treasurer's Report (April 2023)
Recommended Action: That the City Council review and accept the Monthly Treasurer’s Report for the month ended April 30, 2023.
8. Second Reading of Ordinance 2296 Amending Chapter 5.50 of the Campbell Municipal Code (Ordinance/Roll Call Vote)
Recommended Action: That the City Council approve the second reading and adopt Ordinance 2296 amending Chapter 5.50 - Special Events Permit of the Campbell Municipal Code.
9. Resolution Authorizing Fourth Amendment to Agreement with the County of Santa Clara to Provide a Senior Nutrition Program f or Fiscal Year 2023 - 24 (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution authorizing the City Manager to execute a Fourth Amendment to the Agreement with the County of Santa Clara for the provision of congregate mea l services, extending the Agreement and providing funding for Campbell's Senior Nutrition Program for Fiscal Year 2023-24.
10. Approval of Tract Map No. 10570 Including Acceptance of Street Dedication and Publ ic Service Easements Shown on Said Map – 600 Ea st Campbell Avenue (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution approving the Tract Map for Tract No. 10570 and accept the street dedication and public service eas ements as shown on the map for the property located at 600 East Campbell Avenue.
11. Resolution Preliminarily Approving Engineer’s Report and Resolution Declaring Intention to Levy Lighting and Landscaping District L LA-1 Assessments for Fiscal Year 2023 -24, and Setting Time and Place for Public Hearing (Resolutions/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution preliminarily approving the Engineer’s Report for the annual levy and collec tion of assessments for City of Campbell Lighting District LLA -1 for Fiscal Year (FY) 2023-24; and adopt a resolution declaring City Council’s intention to levy and collect assessments within the City of Campbell Lighting District LLA -1 for FY 2023-24, and setting forth the time and place for a required Public Hearing.
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.
12. Introduction of Proposed Fiscal Year (FY) 2024 Operating Budget and 2024 - 2028 Five-Year Capital Improvement Plan (CIP)
Recommended Action: That the City Council review the Proposed Fiscal Year (FY) 2024 Operating Budget and 2024 -2028 Capital Improvement Plan (CIP) as presented; provide direction t o staff to proceed with finalizing the budget; and establish June 20, 2023 as the date for a public hearing and adoptio n of the FY 2024 Operating Budget and CIP, as well as the Gann Appropriations Limit.
NEW BUSINESS
13. Purchasing System Organizational Assessment
Recommended Action: That the City Council receive a Purchasing System Organizational Assessment.
UNFINISHED BUSINESS
14. Approval of the Plans, Specifications, and Estimate (PS&E), and Authorization for the Public Works Director to Solicit Bid P roposals from the List of Pre -Qualified Contractors, for the Measure O – Library Renovations Project (No. 23-SS) (Resolution/Roll Call Cote) Recommended Action: That the City Council adopt a resolution approving the plans, specifications, and estimate (P S&E), and authorizing the Public Works Director to solicit bid proposals from the list of pre -qualified contractors, fo r the Measure O - Library Renovations Project (No. 23-SS).
COUNCIL COMMITTEE REPORTS
15. 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 Council 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 the 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. All 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
Report
TITLE: Presentation by the Youth Commission Regarding 2022 -2023 Work Plan Accomplishments
RECOMMENDED ACTION
Receive the Campbell Youth Commission presentation.
BACKGROUND
The Campbell Youth Commission is comprised of fourteen Campbell youth ranging from 7th to 12 th grade. These students apply annually to participate in the Campbell Youth Commission from August to May of each year. The 2022 -2023 Youth Commission recently completed their term in May 2023.
DISCUSSION
The fourteen members of the Youth Commission developed a work plan that connected youth with the Campbell community through meaningful events and a “We Love Campbell” campaign. Mem bers from the Youth Commission will be presenting the highlights from their 2022-2023 Work Plan.
Prepared by:
Natasha Bissell, Recreation and
Community Services Director
Item: 1
Category: SPECIAL PRESENTATIONS
AND PROCLAMATIONS
Meeting Date: June 6, 2023
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Presentation by the Youth Commission Page 2 of 2
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Approved by:
Brian Loventhal, City Manager
CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California
STUDY SESSION MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, April 25, 2023 – 9:00 AM
City Hall Council Chamber
70 N. First St., Campbell, California
This City Council meetin g was duly noticed pursuant to open meeting requirements of the Ralph M. Brown Act (G.C. Section 54956).
CALL TO ORDER
The City Council of the City of Campbell convened this day in the special 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 Absent
Staff Present:
Brian Loventhal, City Manager; Andrea Sanders, City Clerk, Bill Seligmann, City Attorney; Will Fuentes, Finance Director; Norite Vong, Manager Vong; Rob Eastwood, Community Development Director; Angelique Gaeta, Assistant City Manager; Todd Capurso, Public Work s Director; Gary Berg, Police Chief; Cecil Lawson, Information Technology Manager; Je nny Le -Christensen, Human Resources Manager; and Recreation and Community Services Director; Natasha Bissell.
PUBLIC COMMENT
There were no public comments.
NEW BUSINESS
1. Fiscal Year 2023 -24 Budget Study Session - Preliminary Workplans, Operating Budget, and Capital Improvement Plan (CIP)
Recommended Action: That the City Council receive an update and provide feedback on preliminary Fiscal Year (FY) 2023 -24 Workplans, th e FY 2023 -24 Operating Budget, and the 2024 - 2028 Five -Year Capital Improvement Plan (CIP).
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Minutes Acceptance: Minutes of Apr 25, 2023 9:00 AM (CONSENT CALENDAR)
Minutes of April 25, 2023 City Council Meeting Page 2
City Manager Loventhal provided an introduction and meeting overview. He spoke of the Priority -based budgeting approach to link City resources with strategic priorities of the City Council and Community.
Community Development Director Eastwood presented workplan items related to Land Use Planning and Housing.
Public Works Director Capurso presented information related to Measure O.
Finance Director Fuentes pr esented information related to Fiscal Stability, noting the continued efforts to complete approved workplans for current Fiscal Year (FY) 23 and steps taken to achieve new workplan objectives.
Community Development Director Eastw ood presented information related to Sustainability.
Police Chief Berg presented information related to Community Health and Safety noting ongoing and proposed efforts.
Within the Community Health and Safety category, Public Works Director Capurso presen ted information related to ongoing traffic calming, increased bike/ped safety, and battery backup at signals and intersections.
Council asked questions related to the staff presentations.
Director Fuentes presented information related to the City Operat ing Budget and noted expen diture adjustments as they relate to Council Priorities; these were broken down by one -time expenses, re -occurring expenses and personnel requests.
Councilmembers were provided with an opportunity to ask questions related to the operating budget.
Council took a 5-minute recess and reconvened at 11:05 a.m.
Finance Director Fuentes presented an American Rescue Plan (ARPA) funding allocation discussion.
Finance Director Vong presented information on the FY2024 -2028 Capital Improvement Plan, (CIP) noting F Y2024 projected CIP expenditures, and changes to the CIP compared to the prior FY2022-2026 CIP.
Councilmembers were provided with an opportunity to ask questions related to the CIP presentation.
Councilmember Lopez appreciated the new process and approach. He stated if a position is unfunded but a need arises, staff should bring that forward. Some of his priorities were the Hamilton Area Plan and the Climate Action Plan. He acknowledged that while it may not be a current FY priority he would like to 2 Packet Pg. 8
Minutes Acceptance: Minutes of Apr 25, 2023 9:00 AM (CONSENT CALENDAR)
Minutes of April 25, 2023 City Council Meeting Page 3
continue discussions related to the signals and public transit. He suggested using ARPA funds towards homelessness prevention programs or direct assistance.
Councilmember Furtado was supportive of homelessness discussions and suggested collaborations with nei ghboring cities for a more regional approach.
He stated support for movi ng forward with the HVAC system replacement; but suggested postponing carpet replacements. He commented on the staffing requests stating support for reclassified positions as well as t he Recreation Supervisor position. At this time, he was not supportive o f funding 2 police officers for this FY. He stated support for replenishing reserve funds.
Vice Mayor Landry commented on the Engineer position requested the title and description needs to be updated and would like to the .75 position go to 1. She requested a study to evaluate sidewalks near the Orchard City Green and other Civic Center improvements. She was supportive of using ARPA funds to address homelessness issues. She stated that instead of using funds for carpet replacement to focus more on building structural integrity. Priorities included a Climate Action Plan and additional revenue sources. She would be supportive of some funding going towards studies for a Cannabis Ordinance.
Mayor Bybee was generally supportive of staff recommendations. She was generally supportive of the increased General Fund expenditures and suggested looking at other options such as contract, limited -term or temp staffing to fulfill personnel needs. She stated support for the Housing Manager position, the Mental Health Clinician and crossing guards. She was supportive of using ARPA funds towards homeless and transitional housing services. In regard to the Emergency Services Coordinator she suggested contr acting and working with the County. Mayor Bybee was generally supportive of CIP recommendations.
She did see a need for Orchard City Green sidewalk improvements. Priority items also included revenue enhancements and replenishing Reserve Funds.
ADJOURN
Mayor Bybee adjourned the meeting at 11:54 a.m.
APPROVED:
ATTEST:
Anne Bybee, Mayor
Andrea Sanders, City Clerk
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Minutes Acceptance: Minutes of Apr 25, 2023 9:00 AM (CONSENT CALENDAR)
CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California
CITY COUNCIL EXECUTIVE SESSION
Tuesday, May 16, 2023 – 6:30 p.m.
Ralph Doetsch Conference Room
70 N. First Street, Campbell, California
This City Council meeting was duly n oticed pursuant to open meeting requirements of the Ralph M. Brown Act (G.C. Section 54956).
CALL TO ORDER
The City Council of the City of Campbell convened this day in the special meeting place, at Campbell City Hall, 70 N. First Street, Campbell Californ ia in the Ralph Doetsch Conference Room.
ROLL CALL
Attendee Name Title Status
Sergio Lopez Councilmember Present
Elliot Scozzola Councilmember Present
Dan Furtado Councilmember Present
Susan M. Landry Vice Mayor Present
Anne Bybee Mayor Present
PUBLIC COMMENT
There was no public comment.
MOVE INTO CLOSED EXECUTIVE SESSION
A. Personnel
B. Litigation – CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION (Paragraph (1) of subdivision (d) of California Government Code section 54956.9) Name of Case: FPPC v. City of Campbell et. al.
C. Real Property
D. Labor Negotiations
The City Council met in Executive Session to discuss item B. City Manager, Brian Loventhal; City Attorney, William Seligmann; and outside counsel Gary S. Winuk were in attendance.
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Minutes Acceptance: Minutes of May 16, 2023 6:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 2
In open session at the Regular meeting of May 16, 2023, City Attorney Seligmann reported on the Council’s Executive Session actions to authorize the City to defend former Councilmembers Elizabeth Gibbons and Paul Resnikoff in the Closed Sess ion matter which is FPPC Case #201700125, by unanimous vote of the Council,
ADJOURN
Mayor Bybee adjourned the meeting at 7:12 p.m.
APPROVED:
Anne Bybee, Mayor
ATTEST:
Andrea Sanders, City Clerk
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Minutes Acceptance: Minutes of May 16, 2023 6:30 PM (CONSENT CALENDAR)
CITY COUNCIL MINUTES
City of Campbell, 70 N. First St., Campbell, California
REGULAR MEETING OF THE CAMPBELL CITY COUNCIL
Tuesday, May 16, 2023 7:30 p.m.
City Hall Council Chamber – 70 N. First Street
This City Council meeting was duly noticed pursuant 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.campbellca.gov/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
Agent Martin Rivera led the Pledge of Allegiance on behalf of the Campbell Police Department in recognition of May 14-20, 2023 as National Police Week.
SPECIAL PRESENTATIONS AND PROCLAMATIONS
1. Proclamation Declaring the Week of May 21 - 27, 2023, National Public Works Week
Recommended Action: That the City Council proclaim the week of May 21 -27, 2023 as National Public Works Week for the City of Campbell.
Mayor Bybee invited Public Works Director Todd Capurso to accept the proclamation recognizing the week of May 21-27, 2023 as National Public Works Week for the City of Campbell. She read the proclamation and spoke of the significance of National Public Works Week and commended staff for all their efforts.
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Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 2
Councilmembers expressed their appreciation to Director Capurso and his Engineering and Maintenance staff for the excellent job they preform.
Public Works Director Capurso thank ed the Mayor and City Council for the recognition. He acknowledged his staff a nd spoke of their outstanding efforts in maintaining parks, streets, signals, and fleet, as well as the Engineering team that reviews projects, the environmental programs, and ou tside agency partnerships such as West Valley Clean Water, West Valley Solid Waste and the West Valley Sanitation Authority.
COMMUNICATIONS AND PETITIONS
Mayor Bybee invited the City Attorney to report out on any Executive Session actions.
City Attorney Seligmann stated, in Executive Session the City Council authorized the City to defend former Councilmembers Elizabeth Gibbons and Paul Resnikoff in the Closed session matter which is FPPC Case #201700125, by unanimous vote of the Council.
ORAL REQUESTS
Veronica Harris spoke about the importance of having accessibility and legal access to medical marijuana in Campbell and spoke of the benefits to the community.
COUNCIL ANNOUNCEMENTS
Be sure to visit the 45 th annual Boogie Music Festival in downtown Campb ell this weekend, Saturday, May 20 and Sunday May 21. There will be four stage s of live music from all genres by the best local bands, a KidZone with activities, arts and craft booths and a variety of great food, beer and wine. For additional informatio n, please visit campbellchamber.net.
Join the Campbell Veterans Memorial Foundation in honoring the men and women who have died while serving in the United States military on Monday, May 29 from 9:00 a.m. to 10:00 a.m. at the Orchard City Green located here at City Hall.
Back to school museum field trips are open for reservations. The Campbell Historical Museum & Ainsley House are available for school trips. Programs are designed to complement study units for 2nd and 3 rd grade students. Activities invite students to engage in experiential learning as they rotate through exhibit stations and tour the Ainsley House. To find out more, please visit campbellca.gov.
Event tickets are available for the Ainsley House Spring Garden Conce rts. On Sunday, June 18, Campbell welcomes Ren Geisick a singer song writer from Los Gatos. Enjoy elements of jazz, blues, country and soul. Ren delivers a heartfelt performance of original music and reimagined classics. To purchase tickets, or to find out more about other concert events, please visit campbellmuseums.com.
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Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 3
City offices will be closed for business Monday, May 29 in observance of M emorial Day.
Police and emergency services will remain open.
CONSENT CALENDAR
Mayor Bybee asked if anyone wished to remove an item from the Consent Calendar.
Items 17 and 18 were removed from the consent calendar. Mayor Bybee noted a “No” vote on Item 16 of the Resolution relating to the Campbell Chamber of Commer ce Promissory Note.
The Consent Calendar was considered as follows:
2. Minutes of City Council Special Meeting of April 18, 2023 Recommended Action: Approve the special meeting minutes of April 18, 2023.
This action approves the special meeting minutes of April 18, 2023.
3. Minutes of City Council Executive Session Meeting of May 2, 2023 Recommended Action: Approve the executive session meeting minutes of May 2, 2023.
This action approves the executive session meeting minutes of May 2, 2023.
4. Minutes of City Council Regular Meeting of May 2, 2023 Recommended Action: Approve the regular meeting minutes of May 2, 2023.
This action approves the regular meeting minutes of May 2, 2023.
5. Approving Bills and Claims
Recommended Action: Approve the b ills and claims in the amount of $1,037,815.90.
This action approves the bills and claims in the amount of $1,037,815.90 as follows: payroll checks dated April 13, 2023, in the amount of $33,8 93.75; bills and claims checks dated April 17, 2023, in the amount of $392,231.17; bills and claims checks dated April 24, 2023, in the amount of $538,554.22; and payro ll checks dated April 27, 2023, in the amount $73,136.76.
6. Investment Report - Quarter Ending March 2023
Recommended Action: That the City Council approve the Investment Report for the quarter ending March 2023 and the report be noted and filed.
This action notes and files the Investment Report for the quarter ending March 2023.
7. Second Reading of Ordinance 2294 Amending Provisions of the Campbell Municipal Code to Revise the Business License Tax Rates Effective in Fiscal Year 2024 (Ordinance/Roll Call Vote)
Recommended Action: That the City Council approve the second reading and adopt Ordinance 2294 amending provisions of the Campbell Municipal Code to revise the business license tax rates, effective in Fiscal Year (FY) 2024.
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Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 4
Ordinance 2294 amends provisions of the Campbell Municipal Code to revise the business license tax rates, effective in Fiscal Year (FY) 2024.
8. Second Reading of Ordinance 2295 Renewing City of Campbell Ordinance 2280, Per the Requirements Set Forth in California Government Co de § 7070, Et. Seq. (Ordinance/Roll Call Vote)
Recommended Action: That the City Counci l approve the second reading and adopt Ordinance 2295 renewing the Military Equipment Policy set forth in Chapter 8.44 of the Campbell Municipal Code as adopted by Ordi nance 2280 and per the requirements set forth in California Government Code § 7070, et. seq.
Ordinance 2295 renews the Military Equipment Policy set forth in Chapter 8.44 of the Campbell Municipal Code as adopted by Ordinance 2280 and per the requirements set forth in California Government Code § 7070, et. seq.
9. Authorization to Purchase and Install Three (3) York Heating, Ventilation and Air Conditioning (HVAC) Units, in an Amount Not to Exceed $64,980, for the Campbell Community Center C -Wing Building; and Dispensing of Bidding Requirements as Specified in Campbell Municipal Code Sectio ns
3.20.030 (7) (8) (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution authorizing the City Manager to execute a service agreement with Environmental Services Incorporated (ESI) for the purchase and installation of th ree (3) York Heating, Ventilation and Air Conditioning (HVAC) Units, i n an amount not to exceed $64,980, for the Campbell Community Center C -Wing Building; and Dispensing of Bidding Requirements as Specified in Campbell Municipal Code Sections
3.20.030 (7) (8).
Resolution 12980 authorizes the City Manager to execute a servi ce agreement with Environmental Services Incorporated (ESI) for the purchase and installation of three (3) York Heating, Ventilation and Air Conditioning (HVAC) Units, in an amount not t o exceed $64,980, for the Campbell Community Center C -Wing Building; a nd Dispensing of Bidding Requirements as Specified in Campbell Municipal Code Sections 3.20.030 (7) (8).
10. Approval to Submit a Grant Application to the Santa Clara Valley Transportation Authority (VTA) for $34,541 in Guaranteed Transportation Development Act (TDA) Article 3 Funds for the Fiscal Year 2024 Campbell Bicycle and Pedestrian Project (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a resolution aut horizing the Public Works Director to submit a grant application to th e Santa Clara Valley Transportation Authority (VTA) for $34,541 in guaranteed Transportation Development Act (TDA) Article 3 Funds, for improvement efforts incorporated under the Campbell Bicycle and Pedestrian Project for Fiscal Year 2024.
Resolution 12 981 authorizes the Public Works Director to submit a grant application to the Santa Clara Valley Transportation Authority (VTA) for $34,541 in guaranteed Transportation Development Act ( TDA) Article 3 Funds, for 4 Packet Pg. 15
Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 5
improvement efforts incorporated under the C ampbell Bicycle and Pedestrian Project for Fiscal Year 2024.
11. Authorization to Issue a Request for Proposals (RFP) for Design Services for the Hamilton Avenue Resurfacing Project (No . 23-BB), the Public Works Director to Negotiate the Terms of the Cons ultant Services Agreement, and the City Manager to Execute Said Agreement (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a resolution to authorize the issuance for a Request for Proposals (RFP) for design services for the Hami lton Avenue Resurfacing Project (No. 23 -BB), the Public Works Director to negotiate the terms of the Consultant Services Agreement, and the City Manager to execute said agreement.
Resolution 12982 authorizes the issuance for a Request for Proposals (RFP) for design services for the Hamilton Avenue Resurfacing Project (No. 23 -BB), the Public Works Director to negotiate the terms of the Consultant Services Agreement, and the City Manager to execute said agreement.
12. Resolution Authorizing the Use of FY 2024 Road Maintenance and Rehabilitation Account (RMRA) Funds for the Annual Street Maintenance Project (FY 2023 through FY 2025) for Resurfacing of Hamilton Avenue, Project No. 23-BB (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution authorizing the use of Fiscal Year 2024 Road Maintenance and Rehabilitation Account (RMRA) Funds for the Annual Street Maintenance Project (FY 2023 through FY 2025) for the resurfacing of Hamilton Avenue, Project No. 23-BB.
Resolution 12983 authorizes the use of Fiscal Year 2024 Road Maintenance and Rehabilitation Account (RMRA) Funds for the Annual Street Maintenance Project (FY 2023 through FY 2025) for the resurfacing o f Hamilton Avenue, Project No. 23-BB.
13. Approval for Vacation of the Light and Air / Building Lines Within Lot 15 of Tract Map No. 148 (621 W. Parr Avenue) and Directing the City Clerk to Record the Resolution (Resolution/Roll Call Vote)
Recommended Act ion: That the City Council adopt a r esolution approving the vacation of the Light and Air/Building Lines within Lot 15 of Tract Map No. 148 and directing the City Clerk to record the resolution.
Resolution 12984 approves the vacation of the Light and Air/Building Lines within Lot 15 of Trac t Map No. 148 and directs the City Clerk to record the resolution, including the desk item.
14. Authorize Issuance of Request for Proposals (RFP) for Rent Dispute Mediation Services (Resolution/Roll Call Vote)
Recommended Action: That the City Council ad opt a Resolution authorizing the Community Development Director to issue a Request for Proposals (RFP) for rent dispute and mediation services; and authorize the City Manager to a execute a service contract with the most responsible bidder.
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Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 6
Resolution 12985 authorizes the Community Development Director to issue a Request for Proposals (RFP) for rent dispute and mediation services; and authorizes the City Manager to execute a service contract with the most responsible bidder, including the desk item.
15. Authorize Issuance of Affordable Housing Nexus Studies RFP (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a Resolution authorizing the Community Development Director to issue a Request for Pro posals for preparation of Affordable Housing nexus studies and authorize the City Manager to execute a service contract with the most responsive bidder.
Resolution 12986 authorizes the Community Development Director to issue a Request for Proposals for pr eparation of Affordabl e Housing nexus studies and authorize the City Manager to execute a service contract with the most responsive bidder.
16. Adopt a Resolution Authorizing a Downtown Special Event Permit and Fee Waiver and Approving an Amendment to the Promissory Note with t he Campbell Chamber of Commerce (Resolution/Roll Call Vote) Recommended Action: That the City Council adopt a resolution (1) authorizing the issuance of a Downtown Special Event Permit to the Campbell Chamber of Commerce (2) authorizing a fee waiver for a not-to-exceed amount of $25,000 in permit fees, and (3) approving an amendment to the promissory note between the City of Campbell and the Campbell Chamber of Commerce for a decrease in permit fees due.
Resolution 12987 authorizes the issuance of a Downt own Special Event Permit to the Campbell Chamber of Commerce; authorizes a fee waiver for a not -to- exceed amount of $25,000 in permit fees; and approves an amendment to the promissory note between the City of Campbell and the Campbell Chamber of Commerce for a decrease in permit fees due.
Mayor Bybee voted no on approving an amendment to the promissory note between the City of Campbell and the Campbell Chamber of Commerce for a decrease in permit fees due.
M/S: Landry/Lopez - That th e City Council approve the consent calendar with the exception of items 17 and 18. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Landry
SECONDER: Lopez
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
ITEMS CONSIDERED SEPARATE FROM CONSENT
17. Resolution Commending Officer James Cooper for Over 7 Years of Service to the City of Campbell (Resolution/Roll Call Vote)
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Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 7
Recommended Action: That the City Council adopt a resolution commending Officer James Cooper for his over 7 years of service to the City of Campbell.
Mayor Bybee highlighted some of Officer Cooper’s career achievements in public service and with the City of Campbell Police Department.
Police Chief Berg noted the contributions Officer Cooper made to the Campbell community, congratulated him on his retirement and thanked him for his service.
Councilmembers recognized and thanked Officer Cooper for his service and dedication to the Campbell community.
M/S: Landry/Lopez – That the City Council adopt Reso lution 12988 commending Officer James Cooper for his over 7 years of service to the City of Campbell. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Landry
SECONDER: Lopez
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
18. Resolution Commending Agent Martin Rivera for Over 26 Years of Service to the City of Campbell(Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution comme nding Agent Martin Rivera for his over 26 years of service to the City of Campbell.
Mayor Bybee highlighted some of Agent Rivera’s achievements during his time with the City of Campbell Police Department.
Police Chief Berg noted the contributions Agent Rivera made to the Campbell community, congratulated him on his retirement and thanked him for his service.
Councilmembers recognized and thanked Agent Rivera for his service and dedication to the Campbell community.
Agent Rivera recognized his wife Nicole for her support, thanked the City Council for the rec ognition and spoke of the great relationships he built with City staff over the years.
M/S: Landry/Lopez – That the City Council adopt Resolution 12989 commending Agent Martin Rivera for his over 7 years of service to the City of Campbell. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Landry
SECONDER: Lopez
4 Packet Pg. 18
Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 8
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
PUBLIC HEARINGS AND INTRODUCTION OF ORDINANCES
Mayor Bybee asked the City Council if there were any disclosures, they would like to make in regards to the Public Hearing items. There were no disclosures made.
19. Public Hearing to Consider the Request of Loretz Construct ion, Inc. on Behalf of David M. Foulkes, Trustee, for a Zoning Exception to Allow an Approximately 666 Square -Foot Expansion (Inclusive of a 557 Square -Foot Garage Addition and 109 Square -Foot Living Area Addition) of an Existing Accessory Dwelling Unit (" Carriage House") Previously Approved by a Conditional Use Permit (UP 96 -04), on a Landmark P roperty Listed on the Campbell Historic Resource Inventory (HRI), Commonly Known as the Littleton-Martin House, Located at 1690 Littleton Place in the R -1-9-H (Single-Family Residential / Historic Overlay) Combining Zoning District), Including Exceedance o f the Maximum Allowable Size for an Accessory Dwelling Unit, an Exception to the Expansion Prohibition for Legal Non - Conforming Structures, and Exceptions to the Sp ecial Provisions for Accessory Dwelling Units Located on Historic Properties. (Resolution/Ro ll Call Vote)
Recommended Action: The Planning Commission and Historic Preservation Board recommend that the City Council adopt a Resolution approving a Zoning Exception to allow an approximately 666 square -foot expansion of an existing accessory dwelling unit ("carriage house").
This is the time and place for a public hearing to consider the request of Loretz Construction, Inc. on behalf of David M. Foulkes, Trustee, for a Zoning Exception to allow an approximately 666 Square -Foot Expansion (Inclusive o f a 557 Square-Foot Garage addition and 109 Square -Foot Living Area addition) of an Existing Accessory Dwellin g Unit ("Carriage House") previously approved by a Conditional Use Permit (UP 96 -04), on a Landmark Property Listed on the Campbell Historic Resou rce Inventory (HRI), commonly known as the Littleton - Martin House, located at 1690 Littleton Place in the R -1-9-H (Single -Family Residential / Historic Overlay) Combining Zoning District), including exceedance of the maximum allowable size for an Accessory Dwelling Unit, an exception to the Expansion Prohibition for Legal Non -Conforming Structures, and exceptions to the Special Provisions for Accessory Dwelling Units located on Historic Properties.
Senior Planner Fama presented a staff report dated May 16, 2023.
Council asked general questions related to the staff report presentation.
Mayor Bybee opened the public hearing and asked if anyone wished to speak.
4 Packet Pg. 19
Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 9
Property owner Mike Foulkes provided a background on the project, gave information about the Carriage House and stated the goal is to unify the property structure while maintaining the historical integrity of the homes.
Seeing no one else wishing to speak, Mayor Bybee closed the public hearing.
Councilmembers expressed their support for the project.
M/S: Landry/Scozzola – That the City Council adopt Resolution 12990 approving a Zoning Exception to allow an approximately 666 square -foot expansion of an existing accessory dwelling unit ("carriage house"). The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Landry
SECONDER: Scozzola
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
20. Introduction of Ordinance Amending 5.50 of the Campbell Municipal Code Regarding Special Events Permit and Introduction of City Pa rk Special Event Policy (Ordinance/Resolution/Roll Call Vote)
Recommended Action: That the City Council introduce and hold first reading of an Ordinance amending Chapter 5.50 of the Campbell Municipal Code and adopt a Resolution approving a new administra tive policy titled City Park Special Event Policy.
This is the time and place for a public hearing to consider introduction of an Ordinance amending Chapter 5.50 of the Campbell Municipal Code regarding Special Events Permit and adopt a Resolution approvi ng a new administrative policy titled City Park Special Event Policy.
Recreation a nd Community Services Director Bissell presented a staff report dated May 16, 2023.
Council asked general questions related to the staff report presentation.
Mayor Bybee o pened the public hearing and asked if anyone wished to speak.
Seeing no one wishing to speak, Mayor Bybee closed the public hearing.
Councilmembers expressed support for the staff recommendation.
After discussion, M/S: Scozzola/Furtado – That the City Co uncil introduce and hold first reading of Ordinance 2296 amending Chapter 5.50 of t he Campbell Municipal Code and adopt Resolution 12994 approving a new administrative policy titled City Park Special Event Policy. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
4 Packet Pg. 20
Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 10
MOVER: Scozzola
SECONDER: Furtado
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
City Clerk Sanders read the full title of Ordinance 2296.
M/S: Furtado/Landry - That the City Council waive further reading of Ordinance 2299. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Furtado
SECONDER: Landry
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
NEW BUSINESS
21. Approval of Special Event Permit for the Historic Downtown Camp bell Classic Car Show (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopts a Resolution approving the issuance of a Special Event Permit for the Downtown Campbell Business Association's Historic Downtown Campbell Classic Car Show s ubject to the findings and conditions of approval as described in the Resolution.
Police Captain Livingston presented a staff report dated May 16, 2023.
The Council asked general questions related to the staff report presentation.
Mayor Bybee asked if anyone from the public wished to speak.
DCBA member Mike Van Sant, stated how Covid had really hurt the downtown businesses and that they were trying to bring a fun, family event to the community that will bring revenue to the businesses.
DCBA member Car ol Pouya stated the purpose of the f undraising event was to encourage families to come and patronize businesses while providing the enjoyment of a classic car show. She noted that the DCBA is a non -profit organization and that the money made from this even t would help fund other community ev ents such as the Bunnies and Bonnet Parade and the Carol of Lights.
The City Council expressed support for the DCBA event. Councilmembers discussed the DCBA requested fee waiver or approving a not -to-exceed amount for permit fees as a one -time consideration. A majority of the Council expressed support for a not-to-exceed amount of $5,500.
Mayor Bybee suggested using American Rescue Plan Ac t (ARPA) funds to subsidize staff costs.
4 Packet Pg. 21
Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 11
After discussion, M/S: Landry/Scozzol a – That the City Council adopt Resolution 12991 approving the issuance of a Special Event Permit for the Downtown Campbell Business Association's Historic Downtown Campbell Classic Car Show subject to the findings and conditions of approval as described i n the Resolution; and authorize a not -to-exceed amount of $5,500; and authorize staff to use ARPA funds to subsidize the City’s cost.
The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Landry
SECONDER: Scozzola
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
22. Receive Housing Program Audit and Authorize Application for a Destination Home Grant to Support an Unhoused Specialist Position (Resolution/Roll Call Vote)
Recommended Action: That the City Council receive an d provide comments on the Housing Program Audit Report and adop t a Resolution authorizing the City Manager to apply for, negotiate, and execute a Capacity Building Grant with Destination: Home for an Unhoused Specialist position.
Community Development Dir ector Eastwood introduced the item and Housing Program consultant Rebecca Garcia.
Ms. Garcia presented a staff report dated May 16, 2023.
Councilmembers asked questions related to the staff report presentations.
Mayor Bybee asked if anyone from the publ ic wished to speak. There was no one wishing to speak.
Council discussed the accuracy of the homeless data presented. The Council expressed general support for the Housing Program Audit and associated staff recommendations.
M/S: Landry/Lopez - That the City Council receive and provide comments on the Housing Program Audit Report and adopt Resolution 12992 authorizing the City Manager to apply for, negotiate, and execute a Capacity Building Grant with Destination: Home for an Unhoused Specialist position. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Landry
SECONDER: Lopez
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
UNFINISHED BUSINESS
23. Authorize the City Manager to Execute a Contract Amendment to the Consultant Services Agreements for Building Plan Check and I nspection 4 Packet Pg. 22
Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 12
Services with True North, Bureau Veritas, O’Brien Code Consulting, and West Code Consulting (Resolution/Roll Call Vote)
Recommended Action: That the City Council adopt a resolution increas ing the not to exceed contract amounts and authorizing th e City Manager to execute a contract amendment to the existing agreements with True North, Bureau Veritas, O’Brien Code Consulting, and West Coast Code Consulting for Building Plan Check and Inspection services.
Community Development Director Eastwood pre sented a staff report dated May 16, 2023.
City Attorney Seligmann provided clarification on the Desk Item stating the change was to reference that the City Council is approving the contract rather than the City Manager who will be executing the contract.
The City Council asked general questions related to the staff report presentation.
Mayor Bybee asked if anyone from the public wished to speak. There was no one from the public wishing to speak.
After discussion, M/S: Landry/Furtado – That the City Council adopt Resolution 12993 increasing the not to exceed contract amounts and authorizing the City Manager to execute a contract amendment to the existing agreements with True North, Bureau Veritas, O’Brien Code Consulting, and West Coast Code Consulting for Building Plan Check and Inspection services, including the desk item. The motion was adopted by the following roll call vote:
RESULT: ADOPTED [UNANIMOUS]
MOVER: Landry
SECONDER: Furtado
AYES: Bybee, Landry, Furtado, Lopez, Scozzola
COUNCIL COMMITTEE REPORTS
24. Council Committee Reports
Recommended Action: That the City Council report on activities from their committee assignments.
Councilmember Furtado attended the West Valley Sanitation District meeting; the Silicon Valley Regional Interoperability Authority (SVRIA) meeting; and noted he was appointed to the Santa Clara County Emergency Operational Area Council by the Cities Association Selection Committee.
Vice Mayor Landry viewed Congressw oman Anna Eshoo’s virtual 2023 Congressional Art Competition; and stated she was appointed Chair to the Santa Clara County Library District JPA Governing Board and will be meeting with County Librarian Jennifer Weeks to discuss their upcoming meeting.
4 Packet Pg. 23
Minutes Acceptance: Minutes of May 16, 2023 7:30 PM (CONSENT CALENDAR)
Minutes of May 16, 2023 City Council Meeting Page 13
Councilmember Scozzola spoke of a Silicon Valley Clean Energy website eHub; and attended the Santa Clara Valley Transportation Policy Advisory Committee meeting; and attended an Asian American Pacific Islander event hosted by Supervisor Simitian, also in attendance was Councilmember Furtado.
Councilmember Lopez congratulated Councilmember Furtado and Vice Mayor Landry on their new appointments; he attended several meetings for the Santa Clara County Valley Transportation Authority Board of Directors; and th e Bay Area Quality Management District Board of Directors; and attended the Legislative Subcommittee meeting with staff from Senator Cortese’s Office and Assemblymember Berman’s Office.
Mayor Bybee attended the Cities Association of Santa Clara Board meet ing and the Cities Selection Committee meeting; and the Legislative Subcommittee meeting with Councilmember Lopez where a Letter of Opposition was issued on AB 742 related to law enforcement canines.
ADJOURN
Mayor Bybee adjourned the meeting at 9:43 p.m.
APPROVED:
ATTEST:
Anne Bybee, Mayor
Andrea Sanders, City Clerk
4 Packet Pg. 24
Minutes Acceptance: Minutes of May 16, 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 $2,457,605.58.
DISCUSSION
The bills and claims that have been au dited and approved by staff for payments made are noted below:
Type Check Date Amount
Bills & Claims May 01, 2023 $342,629.12
Bills & Claims May 08, 2023 $1,549,648.52
Payroll May 11, 2023 $29,007.99
Bills & Claims May 15, 2023 $536,319.95
Total $2,457,605.58
FISCAL IMPACT
The r equested action does not require a budget adjustment. Adequate funding was available to cover all expenses as listed.
Prepared by:
Celia Deniz, Accounting Clerk II
Item: 5
Category: CONSENT CALENDAR
Meeting Date: June 6, 2023
5 Packet Pg. 25
Approving Bills and Claims Page 2 of 2
Brian Loventhal, City Manager
5 Packet Pg. 26
Approved by:
City
Council
Report
TITLE: Monthly Investment Transactions Report (April 2023)
RECOMMENDED ACTION
That the City Council review and accept the Monthly Investment Transactions Report for April 2023.
BACKGROUND
As required by California Government Code (GC) Section 53607, staff will submit to the City Council Monthly Investment Transaction Reports within 45 days of the prior month end that show a listing of investments purchased, sold, ca lled, or that have reached maturity, along with any Local Agency Investment Fund ( LAIF) transfers. This is in addition to the Quarterly Investment Report, which shows a number of other items listed under Section VII.A of the City’s Investment Policy and ha s been historically prepared by staff and submitted to the City Council within 30 days from the end of the prior quarter.
DISCUSSION
This Monthly Investment Transaction Report covers April 2023. As shown in Attachment A, staff deposited $3.5 million into and withdrew $0.6 million from the City’s Local Agency Investment Fund (LAIF) account to manage cash as $5.6 million in Secured Property taxes was received during the month. The April LAIF investment rate rose to 2.870%. Consistent with the recommended FY 2022-23 Investment Strategy approved by the City Council on August 1 6, 2022, staff continues to watch for longer- term investment opportunities outside of LAIF , as interest rates continue to rise to provide the highest yet still safe return s, consistent wi th the City’s Investment Policy.
Please note that all investment purchases made adhere to the City’s Investment Policy.
FISCAL IMPACT
There is no fiscal impact associated with the review and acceptance of the Monthly Investment Transactions Report.
Item: 6
Category: CONSENT CALENDAR
Meeting Date: June 6, 2023
6 Packet Pg. 27
Monthly Investment Transactions Report (April 2023) Page 2 of 2 Prepared by:
John Formale, Accountant
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Monthly Investment Activity Report-4.30.23
6 Packet Pg. 28
CITY OF CAMPBELL
Monthly Investment Transactions Report
April 1 to April 30, 2023
Account Trans. Date April 2023
LAIF - ******137
Average Monthly Yield 2.870%
Beginning Balance 70,749,222$
Transactions
Deposit 04/03/2023 600,000
Withdrawal 04/12/2023 (300,000)
Quarterly interest earned 04/14/2023 487,195
Deposit 04/17/2023 2,100,000
Withdrawal 04/24/2023 (300,000)
Deposit 04/26/2023 800,000
Monthly Total 3,387,195
Ending Balance 74,136,417$
Account*** Trans. Date April 2023
Bank of New York (BNY) - ******818
Beginning Balance 25,999,860$
Transactions
Monthly Total -
Ending Balance 25,999,860$
***Investment interest received and posted to Wells Fargo cash account -$
6.a
Packet Pg. 29
Attachment: Monthly Investment Activity Report-4.30.23 (Monthly Investment Transactions Report (April 2023)) City
Council
Report
TITLE: Monthly Treasurer's Report (April 2023)
RECOMMENDED ACTION
That the City Council review and accept the Monthly Treasurer’s Report for the month ended April 30, 2023.
BACKGROUND
California government code section 41004 requires that the City Treasurer submits to the City Clerk and the legislative body a written report and accounting of all receipts, disbursements, and fund balances. The City of Campbell’s Fina nce Director has the responsibility of City Treasurer. This report is prepared to fulfill this requirement.
This report provides financial transaction data for the City of Campbell’s Funds collectively, including the City’s General (Operating) Fund.
DISCUSSION
This Monthly Treasurer’s Report details and summarizes receipts, disbursements, and fund balances for the month ended April 30, 2023. As shown in Attachment A, the City recognized $10.4 million in revenues and incurred $ 6.4 million in expenditures in total, for all City funds. The City’s overall ending fund balance for April 2023 is $99.5 million, an increase of $4 million from the prior month.
For the month of April 2023, the City’s General Fund recognized $ 9.2 million in revenues and incurred $ 4.9 million in expenditures. Of the revenues received, $ 5.5 million and $1.0 million are attributed to property tax and sales tax, respectively. The City’s ending General Fund balance for April 2023 is $22.0 million, an increase of $4.0 million from the prior month.
FISCAL IMPACT
There is no fiscal impact associated with the review and acceptance of the Monthly Treasurer’s Report.
Item: 7
Category: CONSENT CALENDAR
Meeting Date: June 6, 2023
7 Packet Pg. 30
Monthly Treasurer's Report (April 2023) Page 2 of 2
Prepared by:
Carolina Vargas, Accounting Clerk
Approved by:
Brian Loventhal, City Manager
Attachment:
a. 2023.04 Fund Balance Report
7 Packet Pg. 31
City of Campbell
Changes in Total Fund Balance
For the month ended April 30, 2023
Beginning Fund
Balance
07/01/2022
Increase/
Decrease
Jul - Mar
Current
Revenue
Current
Expenditure
Transfer
In
Transfer
Out
Fund Balance
as of
04/30/2023
General Fund
Restricted Fund Balance - - - - - - - -
Committed Fund Balance -
General Plan Update - - - - - - - Compensated Absences 994,762.00 - - - - - 994,762.00 Liability insurance 105,930.00 - - - - - 105,930.00 Available Capital Improvement Reserve 1,144,790.00 - - - - - 1,144,790.00 Committed Capital Improvement Reserve 897,782.36 - - - - - 897,782.36 Community Center Facility 71,019.06 - - - - - 71,019.06 Heritage Theater 268,542.19 - - - - - 268,542.19 Historic Preservation - - - - - - - -
Assigned Fund Balance -
Capital Projects (Construction Tax) 517,241.90 - - - - - 517,241.90 Unemployment insurance 90,000.00 - - - - - 90,000.00 PERS 2,252,000.00 - - - - - 2,252,000.00 OPEB 347,321.00 - - - - - 347,321.00 Encumbrances 711,874.11 - - - - - 711,874.11 -
Unassigned Fund Balance -
Unassigned 1,000,000.00 (1,796,100.36) 9,238,332.85 (4,868,952.51) 593,528.25 (3,057,785.75) 1,109,022.48 City Council Reserve 362,624.00 - - - - - 362,624.00 Economic fluctuations 9,955,452.00 - - - - - 9,955,452.00 Emergency 3,207,453.65 - - - - - 3,207,453.65 General Fund Total 21,926,792.27 (1,796,100.36) 9,238,332.85 (4,868,952.51) 593,528.25 (3,057,785.75) 22,035,814.75 Special Revenue
Vehicle Impact 2,472,588.22 612,691.18 60,555.65 - - - 3,145,835.05 Gas Tax (365,514.38) 62,162.11 160,506.09 (169,181.16) 1,385,475.00 - 1,073,447.66 Asset Forfeiture 113,752.93 17,546.96 - - - 131,299.89 Lighting & Landscape District 1,197,274.65 (635,534.53) 304,982.84 (335,764.68) 705,255.75 (83,475.00) 1,152,739.03 Housing & Community Development 345.85 - - - - - 345.85 Environmental Services 663,921.97 391,586.22 92,542.16 (54,932.50) 378,750.00 (893,828.25) 578,039.60 Supplemental Law Enforcement 268,112.52 (81,614.37) 29,461.77 (14,233.80) - - 201,726.12 State & Other Grants (1,765,042.94) 293,491.73 - - - - (1,471,551.21) TDA Grant 389,463.19 29,453.49 - - - - 418,916.68 Federal Grants 485,117.55 368,405.71 19,611.91 - - - 873,135.17 ARPA Fund (48,224.63) 105,175.27 - - - - 56,950.64 Housing Assistance 8,769,588.00 (160,788.94) - (78,564.74) - - 8,530,234.32 Community Restitution Fund - 51,969.15 10,275.00 - - - 62,244.15 Community Facilities District #1 3,373.66 82,345.84 - (960.56) - (107,250.00) (22,491.06) Community Facilities District #2 181,495.32 16,042.64 - (1,837.06) - (9,000.00) 186,700.90 Parkland Dedication 3,304,721.07 1,113,570.37 112,763.00 - - - 4,531,054.44 Recreation - Private Grants 5,891.46 144.92 - - - - 6,036.38 Adult Center 16,320.94 400.97 - - - - 16,721.91 Special Revenue Fund Total 15,693,185.38 2,267,048.72 790,698.42 (655,474.50) 2,469,480.75 (1,093,553.25) 19,471,385.52 Debt Service
Measure O 5,821,476.10 (2,868,896.95) 13,777.08 - - - 2,966,356.23 LID #30 31,630.40 777.11 - - - - 32,407.51 2016 Refunding Lease Revenue Bond 11,951.65 (677,912.10) 32.56 (80,400.00) 574,350.00 - (171,977.89) Debt Service Fund Total 5,865,058.15 (3,546,031.94) 13,809.64 (80,400.00) 574,350.00 - 2,826,785.85 Internal Service Fund
Motor Vehicle Pool 1,211,824.41 297,116.22 91,755.67 (70,159.59) 368,150.00 (37,500.00) 1,861,186.71 Information Technology Pool 304,071.88 (184,019.45) 96,832.65 (130,630.28) 220,530.00 (37,200.00) 269,584.80 Worker's Compensation 405,180.01 306,726.68 53,045.73 (31,478.35) - - 733,474.07 Internal Service Fund Total 1,921,076.30 419,823.45 241,634.05 (232,268.22) 588,680.00 (74,700.00) 2,864,245.58 Trust/Agency
Successor Agency 281,097.15 790,232.56 368.22 (162,978.25) - - 908,719.68 West Valley Solid Waste JPA 291,540.27 351,343.26 75,000.00 (171,473.31) - - 546,410.22 SCC Specialized Enforcement Team - - - - - - Trust/Agency Fund Total 572,637.42 1,141,575.82 75,368.22 (334,451.56) - - 1,455,129.90 Capital Project
Capital Projects Fund 947,216.58 (3,251,774.10) - (96,439.42) - - (2,400,996.94) Measure O CIP Fund 50,462,160.78 2,905,452.95 - (103,608.98) - - 53,264,004.75 Capital Project Fund Total 51,409,377.36 (346,321.15) - (200,048.40) - - 50,863,007.81 Total City 97,388,126.88 (1,860,005.46) 10,359,843.18 (6,371,595.19) 4,226,039.00 (4,226,039.00) 99,516,369.41 Fund Description
7.a
Packet Pg. 32
Attachment: 2023.04 Fund Balance Report (Monthly Treasurer's Report (April 2023)) City
Council
Report
TITLE: Second Reading of Ordinance 2296 Amending Chapter 5.50 of the Campbell Municipal Code (Ordinance/Roll Call Vote)
RECOMMENDED ACTION
That the City Council approve the second reading and adopt Ordinance 2296 amending Chapter 5.50 - Special Events Permit of the Campbell Municipal Code.
DISCUSSION
On May 16, 2023 the City Council held a public hearing to consider an Ordinance amending Chapter 5.50 of the Campbel l Municipal Code relating to Special Events Permit and adopted Resolution 12994 approving a new administrative policy titled City Park Special Event Policy.
This item was approved by a unanimous vote and the City Council took first reading of Ordinance 2296. In accordance with Gov. Code 36933, the full text of Ordinance 2296 will be published in the Metro Silicon Valley, a newspaper of general circulation for the City of Campbell, County of Santa Clara on June 14, 2023, following approval of second reading. O rdinance 2 296 will become effective 30 days following the second reading approval.
FISCAL IMPACT
Nominal publication costs are associated with approving the Ordinance second reading to meet the requirement of Gov. Code 36933, but can be absorbed within the current FY 2023 Operating Budget. Costs for codification of the Ordinance in the Campbell Municipal Code are also included in the current budget by way of purchase order. Other fiscal impacts are included in the staff report introducing the Ordinance on May 16, 2023.
Prepared by:
Andrea Sanders, City Clerk
Item: 8
Category: CONSENT CALENDAR
Meeting Date: June 6, 2023
8 Packet Pg. 33
Second Reading of Ordinance 2296 Page 2 of 2
Approved by:
Brian Loventhal, City Manager
Attachment:
a. 2296 - Special Events Permit
8 Packet Pg. 34
ORDINANCE NO. 2296
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF CAMPBELL AMENDING CHAPTER 5.50 OF THE CAMPBELL MUNICIPAL CODE R EGARDING SPECIAL
EVENTS PERMIT
THE CITY COUNCIL OF THE CITY OF CAMPBELL DOES HEREBY ORDAIN AS FOLLOWS:
Section 1: 5.50.010 of the Campbell Municipal Code is hereby amended to read as follows with strikethroughs (strikethroughs) indicating deleted text, and underlining ( underlining) indicating added test:
5.50.010 – Definitions
For the purposes of this chapter, the fo llowing words shall have the meanings respectively ascribed to them in this section, unless the context or the provision clearly requires otherwise:
(a) "Festival” means a fair, exhibition, ceremony, art show, program, celebration or other public assemblage of people for the conduct of a festivity, involving the complete or partial use or closure of any public highway, street, alley, sidewalk, or other public right -of-way in the city to normal vehicular or pedestrian traffic and includes the complete or partial use of a city park .
(b) "Footrace" means an event generally open to members of the public and sponsored by a person, organization or group, wherein the partic ipants run or jog following an established route over public highways, streets, alleys, sidewalks , or other public rights -of-way within the city , city parks or trails within the city . (c) "Parade" means a march, procession, motorcade or walk upon any publi c highway, street, alley, sidewalk or other public right -of-way in the city. The term "parade" as used in this chapter, does not include a funeral procession consisting of a single direct movement from a mortuary or church to a place of burial. (d) "Special event" means a parade, footrace or festival, as such terms are defined in this section. However a "block party" shall not be considered a "special event" for purposes of this chapter.
(e) "Block party" means a large public party involving more than twent y people in which members of a single residential neighborhood congregate, either to observe an event of some importance or simply for mutual enjoyment, involving the complete or partial use or closure of any public highway, street, alley, sidewalk, or other public right-of-way in the city to normal vehicular or pedestrian traffic.
8.a
Packet Pg. 35
Attachment: 2296 - Special Events Permit (Second Reading of Ordinance 2296) Section 1: 5.50.020 of the Campbell Municipal Code is hereby amended to read as follows with strikethroughs (strikethroughs) indicating deleted text , and underlining (underlining) indicating added test:
5.50.020 - Permit required – Prohibited activity
(a) No person shall hold, conduct, carry on or cause to be held, conducted or carried on any special event in the city which will impede the normal flow of traffic or requires the closure of a public street, without first having obtained from the city council a permit to do so issued pursuant to this chapter. (b) No person shall hold, conduct, carry on or cause to be held, conducted or carried on any block party in the city without first having obtained from the police department a permit to do so issued pursuant to an adopted city administrative policy.
(c) No person shall hold, conduct, carry on or cause to be held, conducted or carried on any special event in a city park without first having obtained from the recreation and community services department a permit to do so issued pursuant to an adopted city administrative policy.
(cd) No person may engage in any of the following activities:
(1) Participate in a special event or block party for which a permit has not been issued;
(2) Participate in a permitted special event or block party in violation of the terms of the permit;
(3) Participate in a permitted special event or block party without the consent of the permittee;
(4) Interfere with the orderly conduct of a permitted special event or block party; (5) Sell or offer for sale on public streets, sidewalks or rights-of-way any goods, wares or merchandise from vehicles, wagons, pushcarts, stalls, booths or other methods, during or in connection with a permitted special event, unless such sales activity is conducted pursuant to and in accordance with the terms and conditions of the special event permit and with the authorization of the permittee.
Section 3: 5.50.040 of the Campbell Municipal Code is hereby amended to read as follows with strikethroughs (strikethroughs) indicating deleted text, and underlining ( underlining) indicating added test:
5.50.040 Investigation of application.
(a) The recreation and community services director shall transmit a copy of the application for review and comment by each of the following departments:
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Attachment: 2296 - Special Events Permit (Second Reading of Ordinance 2296) (1) Police department; and
(2) Public works department.
The foregoing departments shall be requested to indicate on the application that the proposed permit is either approved or disapproved or approved subject to specified conditions, and to return the application to the recreation and community services director within twenty days.
(b) Upon receipt of the comments and recommendations from the persons and agencies referred to in subsection (a) of this section, but in no event later than thirty sixty days after the date the application is filed, the recreation and community services director police department shall cause the application to be agendized for the hearing and determination by the city council if event includes street closures or alcohol sales. For events held in city parks an authorization or denial letter will be provided by the Recreation and Community Services Department.
SECTION 5. If any section, subsection, sentence, clause or phrase of this ordinance is for any reason held to be invalid, such decision or decisions shall not affect the validity of the remaining portions of this ordinance. The City Council hereby declares that it would have passed this ordinance, and each section, subsection, sentence, clause and phrase thereof irrespective of the fact that any one or more sections, subsections, sentences, clauses or phrases be declared invalid.
SECTION 6. This ordinance shall become effective thirty (30) days following its passage, and shall be published one time within fifteen (15) days upon passage and adoption in the Metro Silicon Valley , a newspaper of ge neral circulation in the City of Campbell, County of Santa Clara.
PASSED AND ADOPTED this _____ day of May, 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: 2296 - Special Events Permit (Second Reading of Ordinance 2296) City
Council
Report
TITLE: Resolution Authorizing Fourth Amendment to Agreement with the County of Santa Clara to Provide a Senior Nutrition Program for Fiscal Year 2023-24 (Resolution/Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt a Resolution authorizing the City Manager to execute a Fourth Amendment to the Agreement with the County of Santa Clara for the provision of congregate meal services, extending the Agreement an d providing funding for Campbell's Senior Nutrition Program for Fiscal Year 2023-24.
BACKGROUND
The City of Campbell (City) has provided a congregate Senior Nutrition Program (Program) since 1975. The goal of the Program is to provide nutritionally bala nced meals five days per week to help promote the health, dignity, and independence of older adults and to provide socialization activities that enable older adults to remain active and productive members of the Campbell community. This Program would not b e possible without the support of state and federal funds, administered by the County of Santa Clara (County) through an agreement between the City and the County allowing for the City to be reimbursed for costs incurred and related to this Program, up to a maximum amount.
Specifically, on July 1, 2019, the City entered into an agreement (Agreement) with the County where the County agreed to reimburse the City for the cost of providing meals for persons 60 years of age and older and consistent with the C ity’s Program. The Agreement also provided that reimbursements would be funded and authorized by the Older Americans Act of 1965, the terms would extend from July 1, 2019 through June 30, 2020, and the authorized reimbursements to the City would not excee d $78,590.
The Agreement was amended on July 1, 2020 to extend the term through June 30, 2021, and increase the amount of authorized reimbursements to the City not to exceed a total of $80,262.72. The Agreement was amended a second time on July 1, 2021 to extend the term through June 30, 2022, and include a total not to exceed amount of $79,939.08 for allowable reimbursements. Thereafter, the Agreement was amended a third time on July 1, 2022 to extend the term through June 30, 2023, and include a total not to exceed amount of $83,041.50 for allowable reimbursements.
Item: 9
Category: CONSENT CALENDAR
Meeting Date: June 6, 2023
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Fourth Amendment Senior Nutrition Program FY 2023-2024 Page 2 of 3 The purpose of this memorandum is to seek Council authorization for the City Manager to execute a fourth amendment to the Agreement with the County to continue the County’s obligation to reimburse the City for costs related to the operation of its Program for Fiscal Year (FY) 202 3-24, in an amount not to exceed $8 8,238.40. Attached to this report is the County Budget Justification for FY 202 3-24 (Attachment B), which outlines the specific terms and maximum reimbursements for the coming year.
DISCUSSION
A fourth amendment to the Agreement with the County will extend the term and all provisions for the County’s administrative oversight of the Program funds for one more year, from July 1, 2023 through June 30, 2024. A fourth amendment would also include a maximum reimbursement amount for Program expenses in FY 202 3-24. Specifically, a fourth amendment would allow for the provision of 14, 880 meals, at a per meal rate of $5.93 per meal, with a maximum reimbursement amount to the City of $88,238.
The FY 202 3-24 Program budget includes a 3% cost of living adjustment (COLA) from the County. The COLA helps to offset negligible meal increases. The total cost of operating the City’s Senior Nutrition Program for FY 202 3-24 is $203,110 (including personnel costs), with the County covering and reimbursing the City for a maximum of $88,238 in food and non -food costs as well as other miscellaneous program items and the City programming the remaining $11 4,872 into the Program’s proposed budget (101.525) in the General Fund. Please note that budget unit 101.525 also has other costs in it not directly related to providing senior nutrition meals.
The City and County share in covering the cost of providing mea ls for individuals participating in the City’s Senior Nutrition Program in the City of Campbell. While the participants contribute to the cost of their meals, these contributions are minimal and are considered by the County to be voluntary. The City pays f or personnel costs to cover the cost of staff necessary to run the Program and the County reimburses the City for costs related to providing meals to seniors participating in the Pro gram at a per meal rate of $5.93 (which covers food, supplies and materials, and other non-personnel costs related to the Program).
FISCAL IMPACT
The FY 202 3-24 Program budget includes a 3% cost of living adjustment (COLA) from the County. The COLA helps to offset negligible meal increases. The total cost of operating the Cit y’s Senior Nutrition Program for FY 202 3-24 is $203,110 (including personnel costs), with the County covering and reimbursing the City for a maximum of $88,238 in food and non -food costs as well as other miscellaneous program items and the City programming the remaining $11 4,872 into the Program’s proposed budget (101.525) in the General Fund. Please note that budget unit 101.525 also has other costs in it not directly related to providing senior nutrition meals.
ALTERNATIVE
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Fourth Amendment Senior Nutrition Program FY 2023-2024 Page 3 of 3 Do not authorize the City Man ager to execute a Fourth Amendment to the Agreement with the County and provide alternative direction to staff.
Prepared by:
Tina Wong-Erling, Senior Services
Supervisor
Reviewed by:
Natasha Bissell, Recreation and
Community Services Director
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Resolution County Agreement FY 2023-24
b. SNP Budget Campbell FY 2023-24
9 Packet Pg. 40
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
AUTHORIZING THE CITY MANAGER TO EXECUTE A FOURTH AMENDMENT OF
THE AGREEMENT WITH THE COUNTY OF SANTA CLARA TO EXTEND THE TERM
OF THE AGREEMENT AND TO INCREASE FUNDING IN THE SENIOR NUTRITION
PROGRAM IN
FISCAL YEAR 2023-2024
WHEREAS, the City of Campbell recognizes the need for a nutritious meal program for senior citizens in Campbell; and
WHEREAS, the County receives funding through the Older Americans Act of 1965; and WHEREAS, the City and the County hav e worked collaboratively since 1975 to share the cost and administration of operating a Senior Nutrition program in Campbell; and WHEREAS, the current A greement was established on July 1, 2019 and has been amended annually; and
WHEREAS, the Fourth Amendment of the Agreement with the County of Santa Clara is required to extend the term for one year, from July 1, 2023 through June 30, 202 4, and clarify the financial obligations of each party to include a m aximum reimbursement to the City of $88,238 for program expenses and the provision of 14,880 meals, at a per meal rate of $5.93 per meal.
NOW, THEREFORE, BE IT RESOLVED that the City Council of the City of Campbell does hereby authorize the City Manager to execute the Fourth Amendment to extend the Agreement with Santa Clara County through June 30, 2024 and to provide increased funding, the amount of $88,238 for the Senior Nut rition Program for Fiscal Year 2023-2024.
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 County Agreement FY 2023-24 (Fourth Amendment Senior Nutrition Program FY 2023-2024)
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Attachment: SNP Budget Campbell FY 2023-24 (Fourth Amendment Senior Nutrition Program FY 2023- City
Council
Report
TITLE: Approval of Tract Map No. 10570 Including Acceptance of Street Dedication and Public Service Easements Shown on Said Map – 600 East Campbell Avenue (Resolution/Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt a resolution approving the Tract Map for Tract No. 10570 and accept the street dedication and public service easements as shown on the map for the property located at 600 East Campbell Avenue.
BACKGROUND
On December 3, 2019, the City Council adopted Resolution No. 12542 conditionally approving a Vesting Tentative Subdivision Map (PLN2016 -380) to merge five existing parcels into one lot to accommodate 59 residential condominium units over on e ground floor commercial unit on the property located at 600 East Campbell Avenue.
On September 28, 2020, Governor Newsom signed AB 1561 (Garcia/Greyson) extending approved Tentative Maps for 18 months due to the Covid-19 pandemic.
DISCUSSION
The Tract Map includes the public street dedication and public service easements necessary to accommodate the approved use of the property. Staff has reviewed the map and found it in compliance with the approved Vesting Tentative Subdivision Map, the Subdivision Ma p Act, and Title 20 of the Campbell Municipal Code. The attached resolution has been prepared for Council’s consideration for approval of the Tract Map, and acceptance of the street dedication and public service easements offered on said map.
While the T entative Map would have expired on December 17, 2021, 24 months after approval of the associated PD permit by City Council, previously mentioned State legislation (AB1561) provided an automatic 18 -month extension to the Tentative Map’s expiration date, keeping the Tentative Map current and valid.
FISCAL IMPACT
Item: 10
Category: CONSENT CALENDAR
Meeting Date: June 6, 2023
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Tract Map 10570 Page 2 of 2
The fiscal impacts associated with this subdivision were previously discussed at the time City Council approved the Vesting Tentative Subdivision Map (PLN2016 -380) on December 3, 2019. To summarize, the project will be generating the following revenue:
1) Traffic Signal Fair Share Contribution ($187,000); 2) Parkland Dedication In -Lieu Fee ($420,000); 3) Building Permit/Plan -Check Fees ($975,000); and 4) Property Tax Increase ($82,500/annually).
ALTERNATIVES
Determine that the Tract Map is not consistent with the Tentative Map or applicable codes, and do not approve the Tract Map with the proposed dedication Prepared by:
Roger Storz, Senior Civil Engineer
Reviewed by:
Todd Capurso, Director of Public Works
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Resolution
b. E Campbell Ave Tract Map 10570
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RESOLUTION NO. ______________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL APPROVING THE TRACT MAP FOR TRACT NO. 10570 AND ACCEPTING THE
PUBLIC STREET AND PUBLIC SERVICE EASEMENTS OFFERED FOR
DEDICATION FOR THE PROPERTY LOCATED AT
600 EAST CAMPBELL AVENUE
WHEREAS, on December 3, 20 19, th e City Council adopted Resolution No. 12542 approving a Vesting Tentative Subdivision Map (PLN2016-380) for the property located at 600 East Campbell Avenue; and
WHEREAS, while the Tentative Map would have ex pired on December 17, 2021, 24 months after approval of the associa ted PD permit by City Council , on September 28, 2020, Governor Newsom si gned AB 1561 extending approved Tentative Maps for 18 months due to the Covid-19 pandemic; and
WHEREAS, public stree t dedication and public service easements are necessary to accommodate the approved use of the property and have been offered for dedication on the Tract Map; and
WHEREAS, the Tract Map has been prepared, reviewed by staff, and found to be in compliance w ith the Tentative Map, the Subdivision Map Act and Titl e 20 of the Campbell Municipal Code.
NOW, THEREFORE, BE IT RESOLVED by the City Cou ncil of the City of Campbell that Tract Map 10 570 is hereby approved, and th e public streets and publi c service easements offered for dedication as shown on said map are here by acce pted i n conformity with the terms for which they are offered.
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 (Tract Map 10570)
TRACT 10570
CivilEngineeringAssociates• •
VICINITY MAPNOT TO SCALE
Hamilton Ave
Campbell Ave
Bascom Ave
Winchester Blvd
Dillon AveRailway Ave
SITE17
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Attachment: E Campbell Ave Tract Map 10570 (Tract Map 10570)
REFERENCES
TRACT 10570
CivilEngineeringAssociates• •
NOTES
BASIS OF BEARINGS
LEGEND
DETAIL A
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Attachment: E Campbell Ave Tract Map 10570 (Tract Map 10570) City
Council
Report
TITLE: Resolution Preliminarily Approving Engineer’s Report and Resolution Declaring Intention to Levy Lighting and Landscaping District LLA -1 Assessments for Fiscal Year 2023 -24, and Setting Time and Place for Public Hearing (Resolutions/Roll Call Vote)
RECOMMENDED ACTION
That the City Council adopt a resolution preliminarily approving the Engineer’s Report for the annual levy and collection of assessments for City of Campbell Lighting District LLA-1 for Fiscal Year (FY) 2023 -24; and adopt a resolution declaring City Council’s intention to levy and collect assessments within the City of Campbell Lighting District LLA-1 for FY 2023 -24, and setting forth the time and p lace for a required Public Hearing.
BACKGROUND
On April 4, 2023, pursuant to City Council Resolution No. 5831 approving the formation of the city -wide City of Campbell Lighting District LLA -1 (LLA-1) and the Landscaping and Lighting Act of 1972 (LLA), the City Council adopted Resolution No. 12956 directing staff to prepare a preliminary Engineer’s Report and initiate proceedings in support of levying assessments on properties within the LLA -1 for Fiscal Year FY 2023 -24, as more fully described in the April 4, 2023, City Staff Report. The purpose of the LLA -1 is to help the City of Campbell (City) fund the installation, operation, and maintenance of a range of public improvements within the district, including public lighting, traffic signals, street and m edian landscaping, parks and recreational improvements, curbs, gutters, sidewalks, and irrigation systems and associated drainage improvements.
DISCUSSION
The Engineer’s Report for FY 2023-24 has been prepared and filed with the City Clerk’s Office, and is available for viewing by the public. The report includes a diagram showing the exterior boundaries of the Assessment District, and the lines and dimensions of each parcel of land within the District is referenced to that parcel as shown on the County A ssessor’s map for FY 2023 -24; each of which parcels are identified by a distinctive number on said County Assessor map. The report contains a proposed assessment roll consisting of the total amount of the estimated costs and expenses of proposed improveme nts (which there are none) in accordance with Section 22569 of Item: 11
Category: CONSENT CALENDAR
Meeting Date: June 6, 2023
11 Packet Pg. 48
Lighting and Landscaping District LLA-1 Page 2 of 3
the California Streets and Highways Code, and the maintenance and/or operation thereof, and of any existing improvements, to be assessed upon the parcels in said District in proportion to the e stimated benefits to be received by such parcels respectively from said improvements, including the maintenance and/or servicing, and of the incidental expenses as provided in the Rules for Spreading Assessments, Exhibit A of the attached Resolution for th e Preliminary Approval of the Engineer’s Report for LLA-1, except that such assessments are not imposed upon a Federal, State, or local agency or upon a public utility or other special government district. The Engineer’s Report also includes a list of improvements as shown in the Description of Work, Exhibit A, of the attached Resolution of Intention to Levy and Collect Assessments for LLA -1.
No new improvements are proposed within LLA-1 for FY 2023-24.
The Engineer’s Report anticipates total expenditure s for needed installation, operation, and maintenance activities in FY 2023 -24 to amount to approximately $4.00 million.
These anticipated expenditures are incorporated into the FY 2023 -24 Proposed Budget and 2024 to 2028 Proposed Capital Improvement Plan (CIP).
Based on the LLA -1 assessment formula, the level of special assessments is only anticipated to total approximately $1,210,000 in FY 2023 -24. To make up the difference to cover the needed maintenance, signal and lighting activities required, a comb ined contribution of approximately $2.79 million will be derived from other revenue sources including the General Fund, Construction Tax, and Gas Tax in FY 2023-24.
To support the levying and collection of assessments in the district in the amount of $1,210,000, City staff proposes the City Council approve the Engineer’s Report for the annual LLA-1 assessment and declare its intention to levy and collect the annual LLA -1 assessment, and direct City staff action as follows:
June 6, 2023 City Council grant s preliminary approval of Engineer’s Report and adopts Resolution of Intention. Time and place for the Public Hearing are set.
June 28, 2023 Resolution of Intention published in in a local newspaper of general circulation.
July 5, 2023 Resolution of Intention published in in a local newspaper of general circulation.
July 18, 2023 Public Hearing is held at the regular City Council Meeting. The City Council considers adoption of a Resolution Overruling Protests, if any, ordering the improvements and confirming the diagram and assessments for FY 2023-24.
August 2, 2023 Diagram and assessment filed with County Auditor no later than August 2, 2023.
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Lighting and Landscaping District LLA-1 Page 3 of 3
To proceed with the assessment process for FY 2023 -24, it is also necessary for the City Council to conduct a Public Hearing on the levy of the proposed assessment at the regular City Council meeting on July 18, 2023. Notices will be published notifying Campbell residents of the upcoming Public Hearing.
FISCAL IMPACT
Although there is no direct fiscal imp act associated with this action, failure to preliminarily approve the Engineer’s Report and set the Public Hearing date would jeopardize the ability of the City to levy the annual Lighting and Landscaping District assessment, which provides approximately $1.21 million to the City for needed services.
ALTERNATIVES
Do not proceed with the annual Lighting and Landscaping District assessment process and designate alternative funding sources for staff to use to replace the LLA -1 revenue or direct staff to reduce or suspend services historically funded by LLA-1 revenue.
Prepared by:
Roger Storz, Senior Civil Engineer
Reviewed by:
Todd Capurso, Director of Public Works
Approved by:
Brian Loventhal, City Manager
Attachment:
a. FY 23-24 LLA Resolution of Approval
b. FY 23-24 LLA Resolution of Intention
11 Packet Pg. 50
RESOLUTION NO. ________________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL PRELIMINARILY APPROVING THE ENGINEER’S REPORT FOR THE ANNUAL
LEVY AND COLLECTION OF ASSESSMENTS FOR
CITY OF CAMPBELL LIGHTING DISTRICT
LLA-1 FOR FISCAL YEAR 2023-24
BE IT RESOLVED, by the City Council of the City of Campbell as follows:
1. On April 4, 20 23, the City Council adopted Resolution No . 12956, initiating proceedings and directing the City Engineer to prepare a report in accordance with Division 15, Part 2, Chapter 1, Article 4 of the California Streets & Highways Code (Sections 22565 et seq.) for the purpose of the annual levy and collection of assessments for the City of Campbell Lighting District LLA-1 for Fiscal Year (FY) 2023-24;
2. The report has been filed with the City Clerk;
3. The City Council finds that the report adequately sets forth the following information:
a) Plans and specifications for proposed new improvements, if any, to be made within the Assessment District;
b) An estimate of the costs of said proposed new improvements, if any, to be made and the costs of maintenance or operation, or both, thereof, and an estimate of the costs for maintenance and operation of any existing improvements, together with the incidental expenses in connection therewith;
c) A diagram showing the exterior boundaries of the Assessment District and the lines and dimensions of each parcel of land within the District as such parcel of land is shown on the County Assessor’s map for FY 2023-24; e ach o f which parcels shall be identified by a distinctive number or letter on said diagram; and d) A proposed assessment, consisting of the total amount of the estimated costs and expenses of the proposed new improvements in accordance with Section 225 69 of the California Streets and Highways Code, including the installation, if any, and the maintenance and/or operation thereof, and of any existing improvements , to be assessed upon the parcels in said District in proportion to the estimated benefits to be received by such parcels respectively from said improvements, including the maintenance or servicing, or both, therefore, and of the expenses incidental thereto, as provided in the Rules for Spreading Assessments, which is attached hereto as Exhibit A and hereby adopted.
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Attachment: FY 23-24 LLA Resolution of Approval (Lighting and Landscaping District LLA-1) NOW, THEREFORE, the City Council hereby preliminarily approves the Engineer’s Report as presently submitted.
I hereby certify that the foregoing is a full, true and correct copy of a Resolution duly passed and adopted by the City C ouncil of the City of Campbell, California, at a meeting thereof held on the _______ of __________, 2023, by the following vote of the members thereof:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
APPROVED:
__________________________________
Anne Bybee, Mayor
ATTEST:
__________________________
Andrea Sanders, City Clerk
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Attachment: FY 23-24 LLA Resolution of Approval (Lighting and Landscaping District LLA-1)
EXHIBIT A
LLA-1 RULES FOR SPREADING ASSESSMENTS
1. District is to be assessed for all costs of forming the Distri ct and maintaining the street landscaping and the lighting systems located within the boundaries of the District.
2. The City Council is h ereby authorized to annually increase the assessment by not more than ten percent (10%) per year to cover increased costs.
3. Total costs shall be apportioned to all parcels within the district boundary in accordance with the benefit received. Parcels without curbs, gutters or sidewalks pay no assessment for sidewalk repair.
4. The benefit for each parcel has been det ermined to be proportional to the land area of that parcel.
5. The area for condominium and townhouse developments shall be determined by assigning to each unit in the development an area equal to that unit’s proportionate share of the total land area in the development.
6. Parcels zoned single-family residence or agriculture are assessed up to a maximum of 10,000 square feet.
7. Three categories of benefits have been established:
A. All parcels having existing zoning of R -1, R-D, R-M-S, R-2-S, R-3-S, P-F or PD (Residential).
B. All parcels having existing zoning of C -1-S, C -2-S, C -3-S, P -O, or PD (commercial or professional).
C. All parcels having existing zoning of M-1-S, M-2-S, or C-M-B.
8. Assessment for lighting and curbs, gutters and sidewalks shal l be a pportioned as follows:
All parcels in Category B have been determined to receive benefit on an area basis in the amount of 1.25 time s the amount of benefit to an equal area in Category A or C.
This additional benefit is attributed to wider sidewalk s and to increased lighting intensity which provide additional security and advertisement for those types of land uses.
9. Assessments for arterial street landscaping shall be apportioned among the parcels in Category B and C of Paragraph 7 above . Residential st reet landscaping shall be apportioned among the parcels in Category A of Paragraph 7 above.
10. In the event that any provision of these rules is held void or unenforceable by a court of competent jurisdiction, such rule shall be deemed severable from the remaining rules, and the remaining rules shall remain in full force and effect.
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Attachment: FY 23-24 LLA Resolution of Approval (Lighting and Landscaping District LLA-1) RESOLUTION NO. ___________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
DECLARING ITS INTENTION TO LEVY AND COLLECT
ASSESSMENTS WITHIN THE CITY OF CAMPBELL LIGHTING
DISTRICT LLA-1 FOR FISCAL YEAR 2023-24
WHEREAS, the City Council, pursua nt to the provisions of the Landscaping and Lighting Act of 1972, Part 2, Division 15 of the Streets and Highways Code of the State of California, conducted proceedings for the formation of the City of Campbell Lighting District LLA-1 and for the levy and collection of Assessments for Fiscal Year 1980-1981, and on June 23, 1980, pursuant to proceedings duly had, adopted Resolution 5831, Overruling Protests and Ordering the Formation of an Assessment District, Improvements, and Confirming the Diagram and Assessment; and
WHEREAS, the public interest, convenience and necessity require, and it is the intention of said Council to undertake proceedings for the levy and collection of assessments upon the parcels of land in said District, for the installation of i mprovements, including the maintenance or operation, or both, thereof for the Fiscal Year 2023-24, and WHEREAS, the City Council has given preliminary approval to the Engineer’s Report which is on file with the City Clerk.
NOW, THEREFORE, BE IT RESOLVED as follows:
1. The City Council declares its intention to levy and collect assessments within the boundaries of City of Campbell Lighting District LLA-1 for Fiscal Year 2023-24, except that such assessments shall not be imposed upon a Federal, State, or local agency or upon a public utility or other special government district.
2. The existing and proposed improvements are generally described in Exhibit A attached to this Resolution, along with any substantial changes proposed to be made in existing improvements.
3. The Assessment District, distinctly referred to as City of Campbell Lighting District LLA-1, is located within all the area of the City Limits of the City of Campbell.
4. The Engineer’s Report setting forth a full and detailed descrip tion of the improvements, the boundaries of the Assessment District, and the proposed assessments upon assessable parcels of land within the District, is on file with the City Clerk and available for viewing by the public.
6. The City Council shall condu ct a Public Hearing on the levy of the proposed assessment at the r egular Council meeting on July 18, 20 23 at 7:30 p.m., or as soon thereafter as the matter may be heard, in the Council Chambers at Campbell City Hall, 70
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Attachment: FY 23-24 LLA Resolution of Intention (Lighting and Landscaping District LLA-1) North First Street, Campbell, California 95008.
I hereby certify that the foregoing is a full, true and correct copy of a Resolution duly passed and adopted by the City Council of the City of Campbell, California, at a meeting thereof held on the ______ day of _______, 2023, by the follo wing vote of the members thereof:
AYES: Councilmembers:
NOES: Councilmembers:
ABSENT: Councilmembers:
APPROVED:
___________________________________
Anne Bybee, Mayor
ATTEST:
__________________________
Andrea Sanders, City Clerk
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Attachment: FY 23-24 LLA Resolution of Intention (Lighting and Landscaping District LLA-1) Exhibit A
City of Campbell
Lighting District LLA-1
Description of Work
The installation, maintenance and operation of public light and traffic signal facilities including standards, luminaires, poles, conduits, wires, transformers, attachmen ts and appurtenances, the furnishing of electric energy, and any expenses incidental thereto.
The maintaining and servicing of trees, shrubs, grass, other ornamental vegetation, irrigation and appurtenances, including repair, removal and replacement of al l or any part thereof, providing for the life, growth, health and beauty of landscaping, including cultivation, trimming, spraying, fertilizing, treating for disease or injury, the removal of trimmings, rubbish, debris and other solid waste, water for irri gation an d any expenses incidental thereto.
The installation and maintenance of curbs, gutters and sidewalks, park and recreational improvements, including play equipment and public restrooms.
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Attachment: FY 23-24 LLA Resolution of Intention (Lighting and Landscaping District LLA-1) City
Council
Report
TITLE: Introduction of Proposed Fiscal Year (FY) 2024 Operating Budget and 2024 - 2028 Five-Year Capital Improvement Plan (CIP)
RECOMMENDED ACTION
That the City Council review the Proposed Fiscal Year (FY) 2024 Operating Budget and 2024-2028 Capital Improvement Plan (CIP) as presented; provide direction to staff to proceed with finalizing the budget; and establish June 20, 2023 as the da te for a public hearing and adoption of the FY 2024 Operating Budget and CIP, as well as the Gann Appropriations Limit.
BACKGROUND
The Proposed Fiscal Year (FY) 202 4 Operating Budget and 202 4 - 2028 Five-Year Capital Improvement Plan (CIP) has been poste d on the City’s website at https://www.ci.campbell.ca.us/151/Budget . Also posted at this location is the complete First Update of the Seven-Year Financial Forecast which covers FY 2024 through FY 2030. The purpose of this agenda item is to formally introduce the Proposed Operating Budget and CIP to the City Council and the public and to obtain feedback and direction prior to the scheduled adoption on June 20, 2023.
DISCUSSION
For ease of viewing, staff has also attached to this report the City Manager’s Transmittal Letter (Attachment A). Thank you for your review and consideration of the Proposed Fiscal Year (FY) 202 4 Operating Budget and 202 4 - 2028 Five-Year Capital Improvement Plan (CIP). Staff looks forward to speaking with you further on June 6 , 2023.
FISCAL IMPACT
Complete fiscal impacts are provided with the City Manager’s Transmittal Letter and the Budget and CIP documents.
Item: 12
Category: PUBLIC HEARINGS AND
INTRODUCTION OF
ORDINANCES
Meeting Date: June 6, 2023
12 Packet Pg. 57
Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets Page 2 of 2 Prepared by:
Will Fuentes, Finance Director
Approved by:
Brian Loventhal, City Manager
Attachment:
a. City Manager's Transmittal Letter
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June 6, 2023
Honorable Mayor, Vice-Mayor, and City Councilmembers:
I am pleased to introduce to you the Proposed Fiscal Year (FY) 202 4 Operating Budget and 2024 - 2028 Five-Year Capital Improvement Plan (CIP) . The Operating Budget and CIP serve as a policy document, a financial plan, a communication's device, and an operation’s guide; reflecting the policies, goals, programs , and service priorities and values of the City Council and the Campbell community. Specifically, the current budget and CIP process emphasizes a Priority-based Budgeting approach to link City resources with the strategic priorities of the City Council and community . This process started at the February
16th Special Meeting and continued through the March 21st Regular Meeting, in which the City Council set the organizations’ priorities shown as Exhibit A . These meetings were then followed up by the April 25th Budget Study Session, in which Council provided staff input and direction on the items below:
• Preliminary FY 2024 Workplans
• Preliminary FY 2024 Operating Budget (General Fund)
• Preliminary 2024 – 2028 CIP
Using Council input and direction received, staff has collaboratively p repared FY 2024 Proposed Workplans shown as Exhibit B as well as the Proposed Budget and CIP. The budget development process though continues to be an iterative process and there will be additional opportunities for Council feedback as well as community input on June 6 (Budget Introduction) and June 20 (Budget Adoption). Any further Council feedback that reaches majority consensus at the June 6 Budget Introduction will be incorporated into the June 20 Budget Adoption if it is fiscally feasible. In preparation for those meetings and so as to provide a high-level overview of the proposed budget and CIP, this transmittal letter will address the following items:
• A – Financial Summary
• B – FY 2024 Budget Requests Update Fiscal Summary
• C – Proposed American Rescue Plan Act (ARPA) Usage
• D – Economic Update and Outlook
• E – Long-Range Forecast
• F – Federal, State, and Other Aid
• G – Budget Awards
• H – Next Steps
• I – Conclusions and Acknowledgements
• Exhibit A - FY 2024 Adopted City Council Priorities
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) • Exhibit B – FY 2024 Proposed Workplans
• Exhibit C – FY 2024 Budget Requests Update Detailed Listing
A - FINANCIAL SUMMARY
General Fund – Financial Summary
Table 1 – Fund Balance Report (Condensed): All Funds Summary
For a more detailed Fund Balance Report, please see the Fund Summaries section of the Budget book
Currently Proposed FY 2024 Operating and Capital expenditures for the General Fund equal $68.6 million and include:
• $ 3.2 million in interfund operating transfers out to support operations in other funds; including $767,000 to pay for 2016 Lease Revenue Bond (LRB) debt service, • $ 1.9 million in interfund capital transfers out to support Capital Improvement Plan Reserve (CIPR) projects; with $1.4 million proposed to be offset by a transfer in from the ARPA fund and to be discussed in Section B,
• $300,000 in interfund capital transfers out to support Construction Tax projects; with the entire amount proposed to be offset by a drawdown of Construction Tax reserves, • 4% assumed salary growth for employees due to approved bargaining agreements, • Other compensation special adjustments to bring certain positions to median, • 8% assumed healthcare premium growth based on historical trends, • Assumption that all vacancies will be filled in FY 2024, except for Economic Development Specialist and Arborist; pending studies and further review on each, • Assumption that filling of remaining vacancies will be staggered based on priority, • $483,000 million in one-time requests,
• $736,000 in recurring requests, and
• $ 789,000 million in staffing requests
Please note that one-time, recurring, and staffing requests currently incorporated into the Proposed Budget and CIP were previously discussed with Council at the April 25th Budget Study Session and will be further detailed in Section B and Exhibit C of this transmittal letter
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) along with requests that are recommended be deferred to future fiscal years, pending necessary fiscal resources to support them.
Related General Fund revenue sources total $68.8 million and include:
•
$2.5 million in interfund operating transfers in to support General Fund operations ; i
ncluding an approximately $ 900,000 proposed transfer from the ARPA fund in addition to the $1.4 million capital transfer in noted above and to be discussed in Section B, and
• $300,000 fund balance draw from Construction Tax reserve to support capital projects This results in estimated General Fund expenditures being fully balanced against estimated General Fund revenues in FY 2024; with a slight estimated surplus of approximately $214,000. In summary, in the General Fund, expenditures for FY 2024 show a 3.8% increase when compared to FY 2023 Year-End Estimates. Conversely , General Fund revenues for FY 2024 show a 3.3% increase when compared to FY 2023 Year-End Estimates.
All City Funds – Financial Summary
T
able 2 – Fund Balance Report (Condensed): All Funds Summary For a more detailed Fund Balance Report, please see the Fund Summaries s ection of the Budget book Currently Proposed FY 2024 Operating and Capital expenditures across all City funds equal $103.2 million and include:
•
$6.1 million in interfund operating transfers out to support operations, • $6.0 million in interfund capital transfers out to support capital projects, • $4.4 million in scheduled Measure O debt service payments, • 4% assumed salary growth for employees due to approved bargaining agreements, • Other compensation special adjustments to bring certain positions to median, • 8% assumed healthcare premium growth based on historical trends, • Assumption that all vac ancies will be filled in FY 2024, except for Economic Development Specialist and Arborist; pending studies and further review on each, • Assumption that filling of remaining vacancies will be staggered based on priority,
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) • $ 2.6 million in one-time requests,
• $1.0 million in recurring requests, and
• $1.2 million in staffing requests, with staggered hiring based on priority
One-time, recurring, and staffing requests currently incorporated into the Proposed Budget and CIP will again be further detailed in Section B of this transmittal letter as well as Exhibit C.
Related revenue sources total $101.5 million and include:
• $6.1 million in interfund operating transfers in to support operations, • $6.0 million in interfund capital transfers in to support capital projects, and • $300,000 fund balance draw from Construction Tax reserve to support capital projects
This results in an annual deficit of approximately $1.7 million across all City funds. However, this deficit is largely due to proposed spending down of some of the City’s one-time remaining ARPA funds by $2.7 million (also to be discussed in Section B and Section C) and the draw down of $1.4 million in accumulated Measure O bond premiums to partially pay for the aforementioned $4.4 million in scheduled Measure O debt service payment s; with the remaining $3.0 million in debt service expected to be supported by estimated Measure O special property tax assessments in FY 2024. Please note that similar to prior years, staff will return to Council by early August 2023 to seek approval of Measure O tax rates for FY 2024 that are sufficient to support the remaining annual debt service payments.
In summary, across all City funds, expenditures for FY 2024 show a 37.3% decrease when compared to FY 2023 Year-End Estimates. This variance is largely due to the appropriation of the majority of Measure O bond funds in FY 2023 to support multi-year projects for a new police station and remodeled library. Additionally, across all City funds, revenues for FY 2024 show a 1.8% decrease when compared to FY 2023 Year-End Estimates. This slight decrease in FY 2024 estimated revenues is due in part to a large one-time back payment made by a top Sales Tax producer in FY 2023 that will not occur again in FY 2024 as well as a high amount of interfund capital transfers in for FY 2023 that are planned to be less in FY 2024.
However, these annual decreases in revenue are almost entirely offset by significant improvements in Property Tax, Transient Occupancy Tax, and potential Intergovernmental grant awards (to be discussed in Section F of this report). Please also note that since the April 25
th Budget Study Session and due to more current information from the County Assessor’s Office as well as the City’s Sales Tax consultants, FY 2024 Property Tax estimates have been increased by $368,000 and FY 2024 Sales Tax estimates by $272,000.
Additionally, due to Council approval of the new FY 2024 Master Fee Schedule and Business License rates at the May 2
nd Regular Meeting, staff increased FY 2024 Charges for Service estimates by $205,000 and FY 2024 Business License estimates by $14,200. In total, these adjustments add $859,000 to FY 2024 revenue estimates; all in the General Fund.
General Fund and Citywide revenue estimates and proposed expenditures by type and department are shown in the Fund Summaries and Departments sections of the Budget Book.
And for more information on the assumptions used to estimate key revenues and other significant items of note, please see the
Funding Sources sections of the Budget Book.
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) B – FY 2024 Budget Requests Update Fiscal Summary
At the April 25 Budget Study Session, staff presented to Council a number of recommended one-time, recurring, and staffing requests for FY 2024 to meet Council priorities, Workpl an objectives, or operating needs. Given Council input and direction received at the April 25 meeting as well as limited financial resources, staff has worked collaboratively to refine those requests. Summarized below is a listing of one-time, recurring, and staffing requests that are incorporated into the Proposed Budget and CIP and those which are recommended be deferred to future fiscal years, pending necessary fiscal resources to support them. Staff has also provided a detailed listing of each incorporated and deferred request in Exhibit C. Staff will be available at the June 6 Budget Introduction to discuss the items in more detail and answer any questions . Additional detail on each request can also be found in the agenda packet materials for the April 25th Budget Study Session. Please note that proposed sources of funding are shown below and any proposed uses of the City’s remaining ARPA allocations will be explained in more detail in Section C of this transmittal letter.
One-Time Requests - Summary
Summary - One-Time Requests INCLUDED
101-General Fund $482,963
221-ARPA $2,082,000
295-Parkland $0
TOTALS $2,564,963
Summary - One-Time Requests DEFERRED
101-General Fund $260,000
221-ARPA $0
295-Parkland $0
TOTALS $260,000
TOTAL – All One-Time Requests (Included & Deferred)
101-General Fund $742,963
221-ARPA $2,082,000
295-Parkland $100,000
TOTALS $2,924,963
Recurring Requests - Summary
Summary - Recurring Requests INCLUDED
101-General Fund $735,865
221-ARPA $280,000
TOTALS $1,015,865
Summary - Recurring Requests DEFERRED
101-General Fund $86,000
221-ARPA $0
TOTALS $86,000
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets)
TOTAL – All Recurring Requests (Included & Deferred)
101-General Fund $821,865
221-ARPA $280,000
TOTALS $1,101,865
Staffing Requests - Summary
Summary - Staffing Requests INCLUDED FTEs
101-General Fund 5.08 $789,448
221-ARPA 2.00 $345,097
233-Housing 0.50 $40,000
TOTALS 7.58 $1,174,545
Summary - Staffing Requests DEFERRED FTEs
101-General Fund 4.00 $427,392
221-ARPA 0.00 $0
233-Housing 0.50 $77,238
TOTALS 4.50 $504,630
Summary – All Staffing Requests (Included & Deferred) FTEs
101-General Fund 9.08 $1,216,840
221-ARPA 2.00 $345,097
233-Housing 1.00 $117,238
TOTALS 12.08 $1,679,175
C – PROPOSED AMERICAN RESCUE PLAN ACT (ARPA) USAGE
The City was allocated $9.997 million in ARPA funds; with equal payments of $4.999 million each received in FY 2021 and FY 2022. Per ARPA guidelines, the City must obligate (appropriate and/or encumber through contractual agreements) these funds by December 31, 2024 and spend them down fully by December 31, 2026. Any uncommitted or unspent funds after these deadlines are subject to be returned to the federal government. As a precautionary note, while the threat is low, there has been some talk at the Federal level of “clawing back” unspent and uncommitted ARPA funds as part of ongoing debt ceiling negotiations. This has been a Republican proposal that has gotten little traction, but it is a threat that the Council should be aware of as it considers spending ARPA funds.
Additionally, per US Treasury guidance, ARPA funds may be used for the following purposes in order to support recovery from the pandemic and fiscal stability and resiliency:
1. Replace lost public sector revenue, using this funding to provide government services to the extent of the reduction in revenue experienced due to the pandemic
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets)
2. Support public health expenditures, by, for example, funding COVID-19 mitigation efforts, medical expenses, behavioral healthcare, and certain public health and safety staff
3. Address negative economic impacts caused by the public health emergency, including economic harms to workers, households, small businesses, impacted industries, and the public sector
4. Provide premium pay for essential workers, offering additional support to those who have and will bear the greatest health risks because of their service in critical infrastructure sectors
5. Invest in water, sewer, and broadband infrastructure, making necessary investments to improve access to clean drinking water, support vital wastewater and stormwater infrastructure, and to expand access to broadband internet
Using ARPA funds to replace lost public sector revenue provides cities the most flexibility in how they can use the funds; with little prohibitions on use other than reserve replenishment, debt payments, pension paydowns, or tax deferrals. Initially though, when the US Treasury released its Interim Final Rule on ARPA, a very complex formula and set of factors were required to calculate a city’s level of pandemic related revenue loss. However, in the Final Rule released in late January 2022, cities may now claim a standard revenue loss of up to $10.0 million (without calculation) and use its ARPA allocations up to that amount to provide any service traditionally provided by local governments . This is analogous to the Standard Deduction on one’s personal taxes and reduces compliance reporting significantly. As such, it is welcome news to smaller agencies with limited staffing as it relieves them from having to perform the complex revenue loss calculation. And it is especially beneficial to the City of Campbell, which received just under the $10.0 million minimum revenue loss allowance.
Thus, this affords the City the greatest flexibility in broadly using its ARPA funds to provide government services. The City may still chose to fully or partially use its ARPA allocations in the other allowable areas shown above, but there is now no federal requirement to do so.
As shown in Table 3 below, as of the end of FY 2024, the City is estimated to have $6.2 million remaining from its ARPA allocations, before the one-time, recurring, and staffing uses recommended by staff in the Proposed Budget and CIP:
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) Table 3 – ARPA Fund Status (Status Quo)
Consistent with Federal guidance and as shown in Section B above, staff is recommending that approximately $ 2.7 million of the City’s remaining ARPA allocations be used for one- time, recurring, and staffing requests in FY 2024; leaving $3.7 million to be spent on other purposes. If Council agrees with these requests and the method of funding them, staff would further recommend reserving the remaining balance for future allocations such as community- based programs or capital projects. Staff requests Council confirmation that the method of funding these requests is acceptable. The alternative is to fund with the General Fund or outside grants, which are uncertain.
D - ECONOMIC UPDATE AND OUTLOOK
Following the Federal Open Market Committee Meeting on May 3 the most anticipated economic release of the week ending May 12 was the April Consumer Price Index (CPI). Both
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) the headline and core (excluding food and energy) came in right on top of consensus expectations at 0.4% month-over-month nationwide. The year-over-year CPI numbers remain elevated at 4.9% for the headline and 5.5% for core, however, the ‘base effect,’ with an extremely high monthly number from May and June of 2022 rolling out of the index, will assist in improving the optics of inflation moderating in the coming months. Some economists continue to forecast inflation will move lower but will be challenged to migrate all the way down to the 2% Federal policy objective ov er an intermediate time horizon. The Producer Price Index was also updated week ending May 12 for April 2023 and the trends are encouraging; both headline and core came in at 0.2% month-over-month with the year-over- year numbers at 2.3% for the headline and 3.2% for core. The other notable economic release was weekly jobless claims breaching 250,000 nationwide to a slightly elevated 264,000 for the week ending May 5th. Staff will be watching the evolution of the jobless claims data closely; if jobless claims move sustainably above the 250,000 threshold it will be another affirmation the tightening of financial conditions is having the desired impact in helping to slow down the economy.
As of the writing of this transmittal lett er, advance retail sales nationwide increased 0.4% month-over-month in April 2023, bouncing back from a dismal March 2023 report of -0.7%.
Auto dealers, online sales, and restaurant spending contributed to the gain and the components that are used to calculate US GDP advanced a robust 0.7% in the month of April.
The indicates that the US consumer is still willing to spend despite higher prices and an increasing reliance on credit cards, but it’s important to note that the 1.6% year -over-year increase in retail sales is not adjusted for inflation. The Federal Reserve Bank of New York’s Empire Manufacturing Survey plummeted to - 31.8 as manufacturing activity in the region contracted sharply in May. Conversely, industrial production beat expectations for another flat reading in April 2023, rebounding 0.5% month-over -month, driven by auto and parts manufacturing. Meanwhile, the Conference Board’s Leading Economic Index declined 0.6% month-over-month and 8.0% year -over-year in April on weakness in the US economic outlook.
Housing starts nationwide unexpectedly rose 2.2% month-over -month to 1.4 million units annualized, a partial recovery from the downwardly revised -4.5% reading for March 2023.
Both single and multi-family housing starts registered gains despite the Freddie Mac 30-year fixed rate mortgage rate ticking back up to 6.5%. Tight inventory levels and pent-up demand have been helping to stabilize the recent softening in the housing market, but affordability remains an issue. Existing home sales, which comprise approximately 90% of the housing market, fell 3.4% month-over-month for April 2023. In Santa Clara County, the average home price increased slightly to $1.84 million in Q1 of calendar year 2023 when compared to an average home price of $1.83 million in Q4 of calendar year 2022; with home sales equaling 1,454 units and 1,823 units in the respective quarters. And in Campbell, the average home price decreased slightly to $1.84 million in Q1 of calendar year 2023 when compared to an average home price of $1.93 million in Q4 of calendar year 2022; with home sales equaling 25 units and 53 units in the respective quarters.
Recently representatives from both sides of the aisle worked to negotiate an agreement to raise the debt ceiling to avoid a US government default. The US Treasury could run out of cash as early as the first week of June if the debt ceiling isn’t raised by Congress. Talks were temporarily suspended on Friday, May 19, but resumed later in the day . Staff’s view is that there is a high probability that a deal will be reached before the X-date when the US Treasury
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) runs out of funds. Stock market participants are likely to continue to focus on the progress of debt ceiling negotiations along with an update on Personal Consumption Expenditures (PCE), the Fed’s preferred gauge of inflation, which is due out this week. Please note again that ARPA “claw backs” have been discussed as one possibility to bring a closure to debt ceiling negotiations, but as of yet it has not gained traction.
T
he April 2023 nationwide employment report demonstrated resilience in the labor market and supported the Fed’s forecast for higher rates for a longer period. The US economy added 253,000 jobs in March 2023, and the prior two months were revised downward by 149,000.
The private sector reported broad gains, led by professional and business services, healthcare, and leisure and hospitality. The unemployment rate fell to 3.4% nationwide, and the participation rate remained unchanged at 62.6%. The U-6 underemployment rate, which includes those who are marginally attached to the labor force and employed part time for economic reasons, declined to 6.6% from the prior month at 6.7%. Average hourly earnings rose 4.4% year-over-year in April, up from a 4.3% increase in March, adding to inflationary pressures. Separately, according to the March JOLTS (Job Openings and Labor Turnover) report, the number of available positions decreased for a third consecutive month to 9.59 million, indicating a slower demand for labor and increased layoffs. The ratio of openings to unemployed people ticked down to 1.6 in March, the lowest since October 2021. While the overall pace of hiring is slowing, levels remain consistent with a solid labor market.
I
n California, total nonfarm employment in the state increased by 67,000 jobs over the month of April 2023. Additionally, statewide unemployment equaled 4.5% in April 2023; up from a rate of 4.4% in March 2023 and a rate of 4.1% in April 2022. In Santa Clara County, the rate decreased to 2.9% in April 2023; down from 3.2% in March 2023, but up from 2.5% in April 2022. And in Campbell, the rate decreased to 2.6% in April 2023; down from 2. 7% in March 2023, but up from 2.3% in April 2023. Thus, the County and City have seen some slight impacts due to recent layoffs in the technology sector, but it has not been a significant impact to unemployment numbers. At its pandemic high point in April 2020, the Campbell unemployment rate had reached 11.7%.
S
taff continues to forecast positive but below trend growth over the course of calendar year 2023. Financial conditions have clearly tightened and are having the desired Treasury impact of slowing down the velocity of the economy. We believe inflation will move lower but not with a pace and magnitude to justify a quick pivot by the Federal Reserve to lower policy rates early in the second half of 2023. Many economists continue to look for the Federal Reserve to pause and hold its policy rate at the current range of 5.00% to 5.25% for the balance of 2023, putting downward pressure on economic growth and inflation. Thus, Campbell will likely see some revenue growth in FY 2024, but it will be limited.
E - LONG-RANGE FORECAST
The First Update of the Seven-Year Financial Forecast is shown and discussed in more detail in a separate section of this Budget book called “Long-Range Financial Forecast ”. The forecast is meant to assist Council and staff in determining whether current expenditure decisions made in FY 2024 can be supported long-term over through FY 2030. While all budgetary requests can be supported by the General Fund in FY 2024, based on staff’s initial analysis and reasonable growth projections in expenditure and revenues, FY 2025 show s a slight deficit; followed by a return to balanced financials in out years . This weakness in FY 2025 could be addressed through the exploration of new revenues sources; thereby allowing
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) the City to better meet its priorities and service needs. As such, as part of its FY 2024 Proposed Workplans, staff will be exploring new revenue measures such as development and other impact fees and tax measures for placement on the November 2024 ballot.
F – FEDERAL, STATE, AND OTHER AID
As previously noted, the City is received $9.997 million total in one-time American Rescue Plan Act (ARPA) funding; with the first payment of $4.999 million received in FY 2021 and the second payment of $4.999 million received in FY 2022. These are one-time monies and must again be obligated (appropriated and/or encumbered through contractual agreements) by December 31, 2024 and spent down fully by December 31, 2026.
In addition to ARPA, staff has submitted a $7.2 million federal budget request to Representative Eshoo’s office for a Community Center Accessibility Enhancements project ($1.2 million) and a Hamilton Avenue Rehabilitation and Complete Streets Improvements project ($6.0 million). Staff is cautiously optimistic about being awarded these funds, but has not received notice as of yet.
At the State level, staff has also submitted a $1.5 million request for ADA and other associated improvements at City Hall. In light of the State’s budget issues, staff is not optimistic about being awarded these funds, but has not received notice as of yet.
And lastly, the current Proposed Budget and CIP assume the following grants will be awarded to the City for the following projects. Staff hopes to receive notice on most of these grants by the time of the June 20
th Adoption. If the City is not awarded these grants, the Council may wish to continue funding the projects entirely with City funds or defer the projects to a later date when necessary funding is available:
• Unhoused Coordinator (Destination Home) – Total Annual Cost - $150,000; Grant - $150,000; City Match - $0 (Housing Fund); Probability of grant success: HIGH; Note – Staff r eceived Council approval to apply for this grant on May 16, 2023 and if awarded, it would pay for three years of costs at $150,000 per year / $450,000 total.
• Climate Adaptation Plan – Total Project Cost - $300,000; Grant - $150,000; City Match - $150,000 (ARPA Fund); Probability of grant success: LOW
• Citywide Mulitmodal Transportation Plan – Total Project Cost - $650,000; Grant - $572,000; City Match - $78,000 (General Fund); Probability of grant success:
MEDIUM; Note – Staff recommends deferring if not awarded
• Hamilton Avenue/Highway 17 Bicycle Overcrossing Planning Study – Total Project Cost - $380,000; Grant - $266,000; City Match - $114,000 (General Fund); Probability of grant success: MEDIUM
• Hamilton Avenue Precise Plan – Total Project Cost - $400,000; Grant - $192,000; City Match - $208,000 (ARPA Fund); Probability of grant success: MEDIUM
The City also hoped to receive a $100,000 grant for the Parks and Recreation Master Plan, with a City match of $100,000 proposed to be funded by the Parkland Fund. However, the
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) City was recently informed that it did not receive this grant and staff recommends deferring this project to a later date; potentially applying to another grant program or using the Parkland Fund to support the entire project.
G - BUDGET AND FINANCIAL AWARDS
For the 30th consecutive year, the City's FY 2023 budget received national recognition by earning the Government Finance Officers Association (GFOA) “Distinguished Budget Award.” To receive the Distinguished Budget Presentation Award, a city must publish a budget document that serves as a policy document, a financial plan, a communications device, and an operations guide. We believe the FY 2024 budget conforms to GFOA program requirements. Additionally, FY 2023 is the 25
th year an award of “Excellence in Budgeting” has been received from the California Society of Municipal Finance Officers (CSMFO). Copies of both awards appear in the “Budget Reference Materials” section of this document. It also should be noted that the City’s Annual Financial Report has also been an award-winning document for excellence in financial reporting at both the State and national levels for many years.
H - NEXT STEPS
• June 6: Introduction of Operating Budget and CIP
• June 20: Adoption of Operating Budget, CIP, and Gann Limit
I - CONCLUSION AND ACKNOWLEDGEMENTS
The development of the Proposed Fiscal Year (FY) 2024 Operating Budget and 2024 - 2028 Five- Year Capital Improvement Plan (CIP) was made possible through the knowledge and contribution of the City’s employees, input and support from our community, and direction of the City Council.
Despite the economic pressures of the past few years, the City has done well to preserve core services and is benefitting from a recovering economy. Nevertheless, we continue to remain cautious, conservative, and strategic in our operational growth to ensure long- term fiscal sustainability.
I wish to thank everyone who participated in the budget process this year including the City Council and members of the Executive Team. Finally, I would like to recognize the staff within the Finance Department for their dedication and hard work that went into coordinating, developing, and publishing this budget document.
Respectfully submitted,
Brian Loventhal
City Manager
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) Exhibit A
FY 2024 Adopted City Council Priorities
Strategic Objectives Council Priorities Comments by Council Members Land Use
Long-Term Land Use
Planning and Housing
• Approve and begin implementation of the
General Plan, Housing Element and Objective
Standards
• Comprehensive Bike/Ped Safety Plan
• Hamilton Avenue Precise Plan
• Develop objective standards for residential
single-family neighborhoods
• Address homelessness
• Consider tenant rights such as rent control
• Park deficiencies: Meet the needs of
residents
• Evaluate Cannabis Program
Measure O • Next steps for Measure O, approving
bids and specs, going to bid, start
construction
• Continue to support Oversight
Committee
• Would like to see some money for ADA
improvements at City Hall
Financial Health
Financial Stability • Be strategic about seeking funding from other public agencies
• Make sure we have enough resources to
support housing programs
• Support software and technology for
organizational and community resiliency
(HRIS, Permitting, etc.)
• Support development of short-term and long-
term Economic Development Plan
• Consider ARPA funding allocations
• Support periodic and routine financial
reporting
• Review unfunded pension liability
• Support asset valuation study and assessment
of maintenance costs
• Explore potential revenue sources
• Look strategically for funding to implement
Housing Element
• Continue to pursue grant funding
opportunities
• Support personnel recruiting efforts
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) Strategic Objectives Council Priorities Comments by Council Members Environment
Sustainability • Support development of Climate Action Plan • SB 1383 implementation, equity for all
housing types
• Support resiliency of City facilities
• Consider efforts to preserve City tree canopy
Community
Community Health and
Safety
• Support traffic calming program
• Support small businesses
• Promote mental health through first
responders and partnerships
• Promote 988 program
• Inclusivity: consider ways to be more
inclusive, for example: ADA access, sign
language translation, etc.
• Support Gun Safety public information
campaign
• Promote Council and City initiatives: Promote
what we do
• Consider Governance policies
• Boards and Commissions structure
• Support crossing guard program: Look to
school districts for cost sharing
• Support Emergency Management
development and training
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) Exhibit B
FY 2024 Proposed Workplans
City Manager
• Provide staff support to the City Council’s evaluation of cannabis ordinance [Council Priority - Long-Term Land Use Planning and Housing]
• Provide staff support to the Civic Improvement Commission [Operational Need] • Coordinate, plan and provide staff support for the State of the City event and All Hands Meeting [Operational Need]
• Coordinate tracking of state legislation (that may impact City) with Legislative Subcommittee [Operational Need]
• Continue to provide guidance and support for labor related issues [Operational Need] • Promote City Council initiatives through various forms of media [Operational Need]
Measure O
• Provide overall coordination of Measure O Police, Library, and related projects [Council Priority – Measure O]
• Conduct public bid process to construct both the Library and Police Building projects [Council Priority – Measure O]
• Begin the construction of both the Library and Police Building projects [Council Priority – Measure O]
• Provide support to the Measure O Citizens’ Oversight Committee [Council Priority – Measure O]
Human Resources
• In collaboration with the Finance Department and Information Technology (IT) Division as well as other key stakeholders, complete the implementation, testing, and training for a new Human Resources Information and Payroll System LEAD DEPARTMENT - IT [Council Priority – Financial Stability]
• Coordinate and plan Benefits Fair and Volunteer Program for City staff [Operational Need] • Work with Liebert Cassidy Whitmore on meet and confer items with CMEA, CPCEA, CPOA, and CARP [Operational Need]
• Develop plan to fill key leadership and vacant positions with a strategic approach [Operational Need]
• Launch Citywide Mandatory Training Series to cover essential topics such as H arassment Prevention, Ethics, Anti- bias, Front Counter Security Training, and Active Shooter Training [Operational Need]
• Conduct a needs assessment to determine which policies and procedures require updating and prioritize them based on their level of importance and impact on the organization [Operational Need]
Information Technology
• Provide IT consultation regarding Measure O projects [Council Priority – Measure O]
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) • Adapt Zero-Trust security stance for all enterprise technology platforms [Financial Stability] • Deploy a new Human Resource Information System [Financial Stability] • Deploy electronic Payroll System [Financial Stability] • Assist in the purchase of a new Finance System [Operational Need] • Purchase and deploy replacement of Storage Area Network [Operational Need] • Purchase and deploy replacement Network Firewall system [Financial Stability] • Extend publicly accessible Wi-Fi at Community Center [Operational Need] • Replace 25% of antiquated desktop computers [Operational Need] • Deployment of new PRA automation [Operational Need]
• Continue public meeting recording and management [Operational Need] • Replace public meeting video and recording systems [Operational Need] • PD - Upgrades related to DOJ mandates (NIBRS) [Operational Need] Economic Development
• Evaluate the provision of Economic Development services and consider alternatives [Council Priority – Financial Stability]
• Implement short-term development strategy to minimize sales tax leakage and fill commercial vacancies [Council Priority – Financial Stability]
• Continue to work on update to the City’s long- term Economic Development Plan [Council Priority – Financial Stability]
• Develop programs to support small business [Council Priority – Financial Stability]
City Clerk
• Conduct Boards and Commissions Brown Act Trainings [Council Priority – Community Health and Safety]
• Implement automated public records request system [Operational Need] • Comprehensive review of citywide records, coordinate and implement a revised records retention schedule and procedures [Operational Need]
Community Development
Administration
• In coordination with the Finance Department, City Council, key stakeholders, and outside consultants (as needed), develop funding strategies and options to support Housing Element programs. CO-LEAD DEPARTMENTS - Finance and Community Development [Council Priorities – Financial Stability and Long-Term and Land Use Planning and Housing] • Upgrade permit tracking system to create greater efficiencies and increase performance in permit processing. [Operational Need]
Policy Development
• Prepare a Citywide Climate Action Plan (Spring 2023) [Council Priority – Sustainability] • Complete update to Zoning Ordinance and objective standards for single family residential in conformance with state laws. [Council Priority – Long - Term Land Use Planning and Housing]
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) • In coordination with the Public Works Department, start preparation of Hamilton Avenue Precise Plan [Council Priority – Long - Term Land Use Planning and Housing] • In coordination with the Recreation and Community Services and Public Works Departments, prepare a Citywide Parks and Recreation Facilities Master Plan [ Council Priority – Long - Term Land Use Planning and Housing]
• In coordination with the Public Works Department, preparation of a Citywide Multimodal plan with bicycle and pedestrian improvements [Council Priority – Long - Term Land Use Planning and Housing]
Building
• Expand capacity to provide plan check and inspection services to support volume of existing and future permit applications [Operational Need]
Housing Assistance
• Implement BMR Housing program improvements as identified in Housing Program audit in association with Housing Element implementation [Council Priority – Long - Term Land Use Planning and Housing]
• Prepare nexus studies to consider modifications to the City's Inclusionary Housing Ordinance and creation of a Commercial Linkage Housing Fee to support Affordable Housing production [[Council Priority – Long - Term Land Use Planning and Housing] • Prepare Affordable Housing Overlay Zone to support affordable housing development [Council Priority – Long -Term Land Use Planning and Housing] • Conduct feasibility studies for potential development of corporation yard for affordable housing [Council Priority – Long Term Land Use Planning and Housing] • Expand homelessness programs including development of a Homekey project and hiring of an unhoused coordinator [Council Priority – Long - Term Land Use Planning and Housing]
Economic Development
• Complete Update to Economic Development Plan & Short -Term Strategic Plan [Council Priority – Financial Stability]
• In coordination with the Public Works Department, complete implementation of downtow n Semi-Permanent Parklet Program [Operational Need]
Finance
• Develop strategies to systematically address Unfunded Pension Liabilities in the short - and long-term [Council Priority – Financial Stability]
• In collaboration with the Human Resources and Information Technology (IT) Divisions as well as other key stakeholders, complete the implementation, testing, and training for a new Human Resources Informat ion and Payroll System LEAD DEPARTMENT - IT [Council Priority – Financial Stability]
• Where feasible, implement recommendations regarding modifications and improvements to the City’s purchasing policies, procedures, operations, and systems [Council Priority – Financial Stability]
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) • Using results of completed facilities condition assessment, collaborate with the Public Works and Recreation and Community Services Departments to prepare capital projects to address Citywide deferred maintenance issues in future Capital Improvement Plans (CIP) LEAD DEPARTMENT - Public Works [Council Priority – Financial Stability] • In coordination with an outside consultant, the City Manager’s Office, all members of the Executive Team, and other key stakeholders, explore potential new revenue sources to add to the FY 2025 Master Fee Schedule and/or place on the 2024 General Election ballot LEAD DEPARTMENTS – City Manager’s Office and Finance Department [Council Priority – Financial Stability]
• In coordination with the City Manager’s Office and all members of the Executive Team, consider how to most effectively, appropriately, and timely use the City’s remaining American Rescue Plan Act (ARPA) allocations LEAD DEPARTMENTS – City Manager’s Office and Finance Department [Council Priority – Financial Stability] • In coordination with the Community Development Department, City Council, key stakeholders, and outside consultants (as needed), develop funding strategies and options to support Housing Element programs. CO-LEAD DEPARTMENTS - Finance and Community Development [Council Priorities – Financial Stability and Long- Term and Land Use Planning and Housing]
Legal Services
• Work with Community Development and Public Works to finish update of Subdivision Ordinance [Council Priority - Long-Term Land Use Planning and Housing] • Assist in City Council’s evaluation of cannabis ordinance [Council Priority - Long-Term Land Use Planning and Housing]
• Provide support on implementation of Measure O [Council Priority – Measure O] • Assist City Clerk with revised records retention schedule and procedures [Operational Need]
• Assist Community Development with/review Citywide Climate Action Plan [Council Priority – Sustainability]
• Assist Community Development with completing update to Zoning Ordinance and objective standards for single family residential in conformance with state laws. [Council Priority – Long - Term Land Use Planning and Housing]
• Review Hamilton Avenue Precise Plan [Council Priority – Long - Term Land Use Planning and Housing]
• Assist Community Development with/review nexus studies to consider modifications to the City's Inclusionary Housing Ordinance and creation of a Commercial Linkage Housing Fee to support Affordable Housing production [Council Priority – Long - Term Land Use Planning and Housing]
• Assist Community Development with/review Affordable Housing Overlay Zone to support affordable housing development [Council Priority – Long -Term Land Use Planning and Housing]
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) Police
• Support and provide feedback regarding the design of new Police Station funded by Measure O bonds [Council Priority - Measure O]
• Work jointly with the City Manager’s office, Public Works, and Finance to confirm Furniture, Fixture, and Equipment (FFE) needs for the new Public Safety building and sufficiency of state grant finding LEAD Department – Public Works [Council Priority – Measure O] • Implement new technologies including Axon Computer Aided Dispatch (CAD) system and Next Generation 911 [Council Priority – Community Health and Safety] • Work with Campbell Union School District and Moreland School District to enter into an MOU for contracted crossing guard services [Council Priority – Community Health and Safety] • Coordinate with Santa Clara County Behavioral Health to enter into an MOU to obtain a PERT clinician to provide alternative responses to mental health crises [Council Pr iority – Community Health and Safety]
• Recruit and hire qualified candidates for police officer and dispatch vacancies and upcoming retirements [Council Priority – Community Health and Safety]
Public Works
Administration
• Manage and implement Measure O design process; complete design of Library and Police building projects; conduct bid process; award construction contracts [Council Priority - Measure O Implementation]
• Represent Campbell in long range regional transportation planning efforts - Envision Silicon Valley and Plan Bay Area 2050 process [Council Priority - Long-Term Land Use Planning and Housing]
Transportation Engineering
• Review and consider revisions to the City’s Traffic Calming Policy [Council P riority – Community Health and Safety]
• Manage, design, and implement traffic calming improvements [Council Priority – Community Health and Safety]
• In coordination with the Community Development Department, manage, design, and implement bicycle and pedestrian enhancements and safety improvements [Council Priority - Long-Term Land Use Planning and Housing]
• Manage Safe Routes to School Maps Project [Council Priority – Community Health and Safety]
• In coordination with the Community Development Department, manage Hamilton Avenue/State Route 17 Bicycle Overcrossing Planning Study (tentative, pending VTA scoring committee results) [Council Priority - Long-Term Land Use Planning and Housing] • Apply for and manage grant funds as provided through VTA and other granting agencies [Council Priority – Financial Stability]
• Manage the construction of the Citywide ITS Enhancements Project [CIP Support]
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) Engineering
• Review development proposals for compliance with the reissued Storm Water Municipal Regional Permit (MRP 3.0), including necessary updates to the Green Infrastructure Plan [Council Priority – Long-Term Land Use Planning and Housing] • Implement the Annual Street Maintenance Program [Council Priority – Financial Stability] • Complete Camden Avenue Resurfacing project (Under bid/award and construction) [Operational Need]
• Manage and implement all other approved Capital Improvement Projects [Operational Need] • Complete Standard Details and Technical Specifications for Public Works Construction [Operational Need]
• Review applications and issue permits for small-cell wireless projects [Operational Need] • Maintain streetlight inventory and assist with street lighting needs for projects [CIP Support] • Review and approve land development projects for compliance with City policies adopted plans, and City standard plans and details, and identify associated improvements on public rights-of-way [Operational Need]
• In coordination with the Community Development Department, facilitate construction of Semi- permanent Parklets in Downtown Campbell [Operational Need] • In coordination with the Recreation and Community Services and Community Development Departments, prepare a Citywide Parks and Recreation Facilities Master Plan [ Council Priority – Long - Term Land Use Planning and Housing]
Maintenance
• Complete a comprehensive Inventory and Condition Assessment of all City Facilities [Council Priority - Financial Stability]
• Complete all approved Capital Improvement Projects, including the John D Morgan Parking Lot Renovation and Virginia Park playground replacement [Council Priority – Sustainability]
• Complete Maintenance Zones 1 & 6 removal and replacement of City -owned displaced sidewalks, curb and gutter and structural tree trimming [Council Priority – Community Health and Safety]
• Complete installation of new Tesco Battery Backup Systems to all signalized intersections [Council Priority – Community Health and Safety]
• Implement water conservation strategies including turf and irrigation controller upgrades for the Community Center and sports fields [Council Priority – Sustainability] • Support volunteer events such as Keep America Beautiful and Campbell Garage Sale [Operational Need]
• Complete the acquisition and installation of a new Traffic Signal and Lighting Modular Building at the Service Center [CIP Support]
• Complete replacement of the Ainsley House Garden Fencing along Grant Avenue [Operational Need]
• Complete the installation and implementation of the new Honeywell HVAC controls system supervisory software program in coordination with IT team[Operational Need] • Coordinate with Recreation on the improvements to Building M room 50 [Grant Funding] • Complete all approved vehicle and equipment purchases and lease acquisitions [Operational Need]
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) • Complete replacement of three diesel -powered heavy -duty trucks with gasoline power ed v
ehicles to meet EPA Tier 4 motor requirements [Operational Need] • Complete asphalt repairs, seal coating, and striping for the Los Gatos Creek Trail [Operational Need]
• Complete Annual Crack Seal Project [Operational Need] • Complete installation of Calsense Irrigation Controller for John D Morgan Park [Operational Need]
E
nvironmental
• Provide grant support for the turf conversion project at the Campbell Community Center [Council Priority - Sustainability]
• Provide solid waste, stormwater, and water conservation expertise for the Campbell Climate Action Adaptation Plan [Council Priority - Sustainability] • Coordinate and support efforts to implement the requirements of SB 1383 [Council Priority - Sustainability]
• Coordinate and support the RFP process for the solid waste hauler rebranding effort [Council Priority - Sustainability]
• Provide support to the Solid Waste Management Authority when implementing the new solid waste hauler agreement and associated requirements [Council Priority - Sustainability] • Provide support to the West Valley Clean Water Authority when implementing the regional stormwater MRP 3.0 [Council Priority - Sustainability]
Measure O – (City Manager’s Office)
• Complete design process for both Police and Library buildings [Council Priority - Measure O]
• Conduct Bid process and award construction contracts for both the Library and Police Building projects [Council Priority - Measure O]
• Begin the construction of both the Library and Police Building projects [Council Priority - Measure O]
• Implement Civic Center site staging plan to accommodate City Hall customers and employee parking [Council Priority - Measure O]
• Provide support to the Citizens’ Oversight Committee [Council Priority - Measure O] Recreation and Community Services
• Collaborate with Public Works and Community Development for Parks and Recreation Master Plan if grant funded is awarded [Council Priority – Long-Term Land Use Planning and Housing]
• Develop strategies and engage the community on long term needs of the community center as community wellness hub [Council Priority – Long-Term Land Use Planning and Housing]
• R enew Age- Friendly Cities designation with World Health Organization (WHO) [Operational Need]
• Revise Recreation Youth Scholarship policy to be more inclusive and expand financial resources [Operational Need]
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets)
Museum
• Increase accessible searchable Museum collection records by 5% [Operational Need]
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) Exhibit C
FY 2024 Budget Requests Update Detailed Listing
One-Time Requests
I
NCLUDED
• Initial implementation of Economic Development Strategy - $25,000; Department:
CMO; Funding Source – General Fund; Council Priority – Financial Stability • Contractual Economic Development Staffing - $48,505; Department: CMO ; Funding Source – General Fund; Council Priority – Financial Stability; Note - Net c
osts between staffing savings and contractual costs shown • Finish Implementation of HR/Payroll System - $60,000; Department: Finance ; Funding Source – General Fund; Council Priority – Financial Stability • Contractual Finance Manager Support - $37,158; Department: Finance; Fundi ng Source – General Fund; Council Priority – Financial Stability • 20th Anniversary Show at Heritage Theatre - $30,000; Department: Recreation ; Funding Source – General Fund; Council Priority – Operational • Mobile Inspector Workstation - $2,000; Department: CDD; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing • Misc. Office - Monitors and Equipment for Staff - $11,000; Department: CDD ; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing
• MGO Project Manager - $60,000; Department: CDD; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing • Training on MFDDS / Objective Standards - $10,000; Department: CDD; Funding Source – General Fund ; Council Priority – Long-Term Land Use Planning and Housing
• Climate Adaptation Plan - $150,000; Department: CDD; Funding Source – ARPA Fund; Council Priority – Sustainability; Note - City grant match shown. Full cost $300,000.
• Citywide Mulitmodal Transportation Plan - $78,000; Department: CDD; Funding Source – General Fund ; Council Priority – Long-Term Land Use Planning and Housing; Note - City grant match shown. Full cost $650,000. Will defer if not awarded. • Hamilton Avenue/Highway 17 Bicycle Overcrossing Planning Study - $114,000; Department: CDD; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing; Note - City grant match shown. Full cost $380,000.
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets)
• Hamilton Avenue Precise Plan - $208,000; Department: CDD/PW; Funding Source – ARPA Fund; Council Priority – Long-Term Land Use Planning and Housing; Note - City grant match shown. Full cost $400,000. Council previously approved use of ARPA to apply for OBAG Planning Grants for Hamilton Area Specific Plan (Resolution #12936) and Hamilton/Highway 17 Bicycle Overcrossing Study (Resolution #12935).
• Employee Health Screenings - $56,000; Department: Police ; Funding Source – ARPA Fund; Council Priority – Community Health and Safety
• CopLogic Online Reporting Integration Fee - $9,000; Department: Police; Funding Source – General Fund; Council Priority – Community Health and Safety
• Boiler & HVAC Replacement - $31,000; Department: Public Works; Funding Source – ARPA Fund; Council Priority – Financial Stability
• Refinish Hardwood Floor in CCC N76 - $13,000; Department: Public Works; Funding Source – General Fund; Council Priority – Financial Stability
• Additional Track Lighting at Historical Museum - $5,500; Department: Public Works; Funding Source – General Fund; Council Priority – Operational
• Install Water Fill Station in Theatre Lobby - $7,500; Department: Public Works; Funding Source – General Fund; Council Priority – Sustainability
• Replace Carpet in CCC K59 - $5,000; Department: Public Works; Funding Source – General Fund; Council Priority – Financial Stability
• Replace Carpet in CCC Q82 - $5,000; Department: Public Works; Funding Source – General Fund; Council Priority – Financial Stability
• Backup Storage NAS w/ 10TB of External Storage - $2,000; Department: Public Works; Funding Source – General Fund; Council Priority – Operational
• Replace Carpet in CCC C35 w/ Vinyl Floor - $20,000; Department: Public Works; Funding Source – General Fund; Council Priority – Financial Stability
• Replacement Storage Area Network System - $132,000; Department: NonDept ; Funding Source – ARPA Fund; Council Priority – Operational
• 23OO Campbell Water Tower Light Replacement - $50,000; Department:
NonDept; Funding Source – ARPA Fund; Council Priority – Financial Stability
• 24HH ADA Transition Plan - FY24 - $50,000; Department: NonDept ; Funding Source – ARPA Fund; Council Priority – Community Health and Safety
• 24NN Citywide ITS Enhancement Phase 2 - $100,000; Department: NonDept ; Funding Source – ARPA Fund; Council Priority – Operational
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets)
• 24OO CCC - Heritage Theatre Boiler - $90,000; Department: NonDept ; Funding Source – ARPA Fund; Council Priority – Financial Stability
• CCC - Building A HVAC Controls - $85,000; Department: NonDept; Funding Source – ARPA Fund; Council Priority – Financial Stability
• CCC - Building A Sewer Line Replacement - $45,000; Department: NonDept ; Funding Source – ARPA Fund; Council Priority – Financial Stability
• CCC - Building M Roof Replacement - $400,000; Department: NonDept; Funding Source – ARPA Fund; Council Priority – Financial Stability
• CCC & Corp Yard Roof Replacements - $475,000; Department: NonDept; Funding Source – ARPA Fund; Council Priority – Financial Stability
• City Hall - HVAC Chiller Replacement - $150,000; Department: NonDept; Funding Source – ARPA Fund; Council Priority – Financial Stability
DEFERRED
• Digitizing Paper Records - $20,000; Department: Finance; Funding Source – General Fund; Council Priority – Operational
• Replace Carpet in Finance Dept - $13,000; Department: Public Works; Funding Source – General Fund; Council Priority – Financial Stability; Note - if receive a State grant for $1.5 million, may wrap into a larger City Hall project
• Office Furniture for Payroll & Accounting - $7,000; Department: Public Works; Funding Source – General Fund ; Council Priority – Financial Stability; Note - if receive a State grant for $1.5 million, may wrap into a larger City Hall project
• Parks and Recreation Master Plan - $100,000; Department: CDD; Funding Source – Parkland Fund; Council Priority – Long-Term Land Use Planning and Housing; Note - City grant match shown. Full cost $200,000. Deferred since not awarded grant for this project.
• City Hall Public Counters and Accessibility Impr - $220,000; Department: CMO; Funding Source – General Fund; Council Priority – Community Health and Safety; Note - if receive a State grant for $1.5 million, may wrap into a larger City Hall project
Recurring Requests
INCLUDED
• Social Services Sub-grants - $10,000; Type - Increase; Department: City Council; Funding Source – General Fund; Council Priority – Community Health and Safety
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) • Consultant Services - $20,000; Type – New; Department: City Council ; Funding Source – General Fund; Council Priority – Operational
• HR Staff Overtime - $15,000; Type – Increase; Department: CMO; Funding Source – General Fund; Council Priority – Financial Stability
• Central Tuition Reimbursement - $35,000; Type – Increase; Department: CMO ; Funding Source – General Fund; Council Priority – Operational
• Customer Service Clerks (RCS Admin) - $33,020; Type – Increase; Department:
Recreation; Funding Source – General Fund; Council Priority – Operational; Note – Offset with revenue
• Lifeguards & Class Ins (Sr. Citizens) - $14,230; Type – Increase; Department:
Recreation; Funding Source – General Fund; Council Priority – Operational; Note – Offset with revenue
• Various temp staff (Sports/Aquatics/Fitness) - $85,200; Type – Increase; Department: Recreation; Funding Source – General Fund; Council Priority Operational; Note – Offset with revenue
• Various temp staff (Trips/Tours/Classes) - $40,975; Type – Increase; Department:
Recreation; Funding Source – General Fund; Council Priority – Operational; Note – Offset with revenue
• Planning Overtime - $20,000; Type – Increase; Department: CDD; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing
• Significant Recruitment Efforts - $150,000; Type – New; Department: Police ; Funding Source – General Fund; Council Priority – Financial Stability ; Note – Limited-term and will be reevaluated as to need in FY 2025.
• Contracted Mental Health Clinician - $100,000; Type – New; Department: Police; Funding Source – ARPA Fund; Council Priority – Community Health and Safety ; Note – Proposed to be funded by ARPA for FY 2024 and FY 2025 and then placed into General Fund
• Public Safety Assistant for Property and Evidence - $37,440; Type – New; Department: Police; Funding Source – General Fund; Council Priority Community Health and Safety
• PERT Clinician - $180,000; Type – New; Department: Police; Funding Source – ARPA Fund; Council Priority – Community Health and Safety; Note – Proposed to be funded by ARPA for FY 2024 and FY 2025 and then placed into General Fund
• CIPR Set Aside (New) - $275,000; Type – Increase; Department: NonDept; Funding Source – General Fund; Council Priority – Financial Stability
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets)
DEFERRED
• Mgmt. Intern (Eng. Assistant) 0.25 FTEs - $12,000; Type – New; Department:
Public Works; Funding Source – General Fund; Council Priority – Operational
• 0.25 FTE for Office Intern - $10,000; Type – New; Department: Public Works; Funding Source – General Fund; Council Priority – Operational
• Temp. Building Maint. Worker 0.50 FTE - $25,000; Type – New; Department: Public Works; Funding Source – General Fund; Council Priority – Financial Stability
• Proj. Mgr. (One -Time Projects) 0.50 FTEs - $39,000; Type – New; Department:
Public Works; Funding Source – General Fund ; Council Priority – Financial Stability
Staffing Requests
INCLUDED
• PLAN CHECK ENGINEER - $187,805; FTE – 1.00; Type - Add; Hire by Date – 7/1/2023; Department: CDD; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing
o SR. BLDG. INSPECTOR – ($193,596); FTE – (1.00); Type - Reduce; Hire by Date – N/A; Department: CDD; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing
o NE T COST: ($5,791)
• SR. BLDG. INSPECTOR - $199,187; FTE – 1.00; Type - Add; Hire by Date – 7/1/2023; Department: CDD; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing
o BLDG. INSPECTOR – ($185,143); FTE – (1.00); Type - Reduce; Hire by Date – N/A; Department: CDD; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing
o NE T COST: $14,044
• PRINCIPAL PLANNER - $227,393; FTE – 1.00; Type - Add; Hire by Date – 7/1/2023; Department: CDD; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing
o SR. PLANNER – ($215,681); FTE – (1.00); Type - Reduce; Hire by Date – N/A; Department: CDD; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing
o NE T COST: $11,712
• HOUSING MANAGER - $210,585; FTE – 1.00; Type - Add; Hire by Date – 7/1/2023; Department: CDD; Funding Source – ARPA Fund; Council Priority – Long-Term
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) Land Use Planning and Housing; Note – ARPA funding proposed for two fiscal years with costs shifted back to Housing Fund in FY 2026
• PT. OFFICE ASSISTANT - $40,000; FTE – 0.50; Type - Add; Hire by Date – 7/1/2023; Department: CDD; Funding Source – Housing Fund; Council Priority – Long-Term Land Use Planning and Housing; Note - Temporary employee with previously requested permanent part-time employee deferred below
• ENVIRONMENTAL PROGRAMS SPECIALIST - $134,512; FTE – 1.00; Type - Add; Hire by Date – 7/1/2023; Department: CDD; Funding Source – ARPA Fund; Council Priority – Sustainability; Note – Limited-term for two fiscal years to develop Climate Action Plan. Previously shown as an Administrative Analyst I at a cost of $168,829.
• IT ADMINISTRATOR - $151,338; FTE – 1.00; Type - Add; Hire by Date – 10/1/2023; Department: CMO; Funding Source – General Fund; Council Priority – Financial Stability
• PERMIT TECHNICIAN - $65,329; FTE – 1.00; Type - Add; Hire by Date – 1/1/2024; Department: CDD; Funding Source – General Fund; Council Priority – Long-Term Land Use Planning and Housing
• ADMIN ANALYST I - $133,911; FTE – 1.00; Type - Add; Hire by Date – 10/1/2023; Department: Finance; Funding Source – General Fund; Council Priority – Financial Stability
• EXECUTIVE ASSISTANT - $139,194; FTE – 1.00; Type - Add; Hire by Date – 7/1/2023; Department: Finance; Funding Source – General Fund; Council Priority – Financial Stability
o PT EXECUTIVE ASSISTANT – ($111,736); FTE – (0.80); Type - Reduce; Hire by Date – N/A; Department: Finance; Funding Source – General Fund; Council Priority – Financial Stability
o NE T COST: $27,458
• ASSISTANT FINANCE DIRECTOR - $218,457; FTE – 1.00; Type - Add; Hire by Date – 9/1/2023; Department: Finance; Funding Source – General Fund; Council Priority – Financial Stability
o FINANCE MANAGER – ($188,810); FTE – (1.00); Type - Reduce; Hire by Date – N/A; Department: Finance; Funding Source – General Fund; Council Priority – Financial Stability
o NE T COST: $29,647
• PT EMERGENCY SERVICES COORDINATOR - $110,610; FTE – 0.50; Type - Add; Hire by Date – 7/1/2023; Department: Police ; Funding Source – General Fund; Council Priority – Community Health and Safety
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) • ASSISTANT ENGINEER - $187,648; FTE – 1.00; Type - Add; Hire by Date – 10/1/2023; Department: Public Works; Funding Source – General Fund; Council Priority – Community Health and Safety
o PT ASSISTANT ENGINEER – ($98,974); FTE – (0.50); Type - Reduce; Hire by Date – N/A; Department: Public Works; Funding Source – General Fund; Council Priority – Community Health and Safety
o NE T COST: $88,674
• PT SR CIVIL ENGINEER - $141,839; FTE – 0.75; Type - Add; Hire by Date – 9/1/2023; Department: Public Works; Funding Source – General Fund; Council Priority – Financial Stability; Note – Possible CIP Project Funding
• PT RECREATION SPVSR - $152,864; FTE – 0.88; Type - Add; Hire by Date – 7/1/2023; Department: Recreation; Funding Source – General Fund; Council Priority – Operational
o PT RECREATION SPVSR – ($132,187); FTE – (0.75); Type - Reduce; Hire by Date – N/A; Department: Recreation ; Funding Source – General Fund; Council Priority – Operational
DEFERRED
• PT. OFFICE ASSISTANT - $77,238; FTE – 0.50; Type – Add; Hire by Date – 7/1/2023; Department: CDD; Funding Source – Housing Fund; Council Priority – – Long-Term Land Use Planning and Housing ; Note - replaced in staffing requests by Temporary employee above
• HR ANALYST - $87,914; FTE – 1.00; Type – Add; Hire by Date – 1/1/2024; Department: CMO; Funding Source – General Fund ; Council Priority – Financial Stability
• PURCHASING AGENT/CONTRACTS ADMIN. - $148,822; FTE – 1.00; Type - Add; Hire by Date – 10/1/2023; Department: Finance; Funding Source – General Fund; Council Priority – Financial Stability
• POLICE OFFICER - $95,328; FTE – 1.00; Type – Add; Hire by Date – 1/1/2024;; Department: Police; Funding Source – General Fund; Council Priority – Community Health and Safety
• POLICE OFFICER - $95,328; FTE – 1.00; Type – Add; Hire by Date – 1/1/2024;; Department: Police; Funding Source – General Fund; Council Priority – Community Health and Safety
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Attachment: City Manager's Transmittal Letter (Introduction of Fiscal Year (FY) 2024 Operating & Capital Budgets) City
Council
Report
TITLE: Purchasing System Organizational Assessment
RECOMMENDED ACTION
That the City Council receive a Purchasing System Organizational Assessment.
BACKGROUND
On January 18, 2022, staff provided City Council with a preliminary assessment of the City’s purchasing policies, procedures, systems, and resources. For reference purposes, a copy of the January 2022 assessment is shown as Attachment C. At that time, staff recomm ended hiring an outside consultant to more fully assess the City’s purchasing policies, procedures, and systems, offer recommendations for revisions where necessary to bring into alignment with best practice, state and federal guidelines, and other related City policies (such as Travel/Training and Credit Card Usage), and perform a needs assessment to determine the appropriate staffing resources and structure to have an efficient and effective City purchasing function.
While Council was supportive of the initiative, they expressed concerns with the timing and directed staff to instead defer it to FY 2023. As such, $89,000 for this initiative was included in the FY 2023 Adopted Budget under the Finance Department (Acct. # 101.535.7430). Additionally, the fo llowing Workplan item was also assigned to the Finance Department in FY 2023:
In coordination with an outside consultant, fully assess the City’s policies, procedures, and systems, offer recommendations for revisions where necessary to bring into alignmen t with best practice, state and federal guidelines, and other related City policies, and perform a needs assessment to determine the appropriate staffing resources and structure to have an efficient and effective City purchasing function. [Council Priority – Financial Stability]
To achieve this Workplan objective, the City Council approved entering into a one -year Consultant Agreement with Baker Tilly (formerly Management Partners) via Resolution 12890 on September 20, 2022. Since that approval and over a six month period, Baker Tilly held interviews and small group discussions with 24 City staff members from 8 departments and divisions, conducted several follow -up meetings with staff members from the Finance and Public Works Departments and the City Manag er’s Office, Item: 13
Category: NEW BUSINESS
Meeting Date: June 6, 2023
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Purchasing System Organizational Assessment Page 2 of 5 reviewed existing policies and procedures, analyzed two sets of purchasing transactions, facilitated two process mapping sessions, and evaluated purchasing positions and structures of peer agencies . The end product of this effort by Baker Til ly and City staff is a Purchasing System Organizational Assessment (Attachment A) and a Purchasing Review Draft Implementation Plan (Attachment B). Council is only asked to review and accept these reports at this time and is not asked to take any action on them, but may wish to use the recommendations contained within to inform future budgetary decisions and allocations of fiscal resources.
DISCUSSION
As shown in Attachment A, Baker Tilly has provided 34 recommendations for improvement designed to facil itate clarity and consistency of purchasing policies and procedures, mitigate risk, and incorporate best procurement practices in a decentralized purchasing environment . In addition, as shown i n Attachment B, Baker Tilly has developed a draft Implementati on Action Plan (IAP). The IAP prioritize Baker Tilly’s recommendations into short -, medium - and longer -term timeframes, provide s implementation action steps, and designate s a responsible staff member to implement each recommendation.
At the June 6 meeting , Baker Tilly will provide a high -level overview of the Purchasing System Organizational Assessment and IAP. In summary, these are their major observations and recommendations:
Major Observations:
• The absence of a purchasing subject matter expert coupled with a highly decentralized procurement system results in varying practices across the City without the necessary oversight that ensures compliance with policies and procedures.
• Manual processes and inconsistent and outdated procedures are inefficient and frustrating to users leading to policy workarounds.
• Current practices may put the City at risk for incidents of waste and fraud. • Existing purchasing policy and procedures as well as financial system limitations are contributing to purchasing practices that may expose the City to risk. • The Finance Department lacks the necessary systems and staffing to effectively provide purchasing oversight and periodic training across the organization to help ensure purchasing policy compliance.
Major Recommendations:
• Establish two new positions in the Finance Department including a Purchasing Officer who reports to the Finance Director and a Buyer position who reports to the newly added Purchasing Officer position.
• Develop a Partnership-Based procurement system where for mally designated department liaisons collaborate with purchasing staff to plan for and conduct procurements.
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Purchasing System Organizational Assessment Page 3 of 5 • Develop specific plans that ensure department directors and management understand purchasing policies and procedures and that they are communicate d throughout the organization and consistently applied.
• Modify current purchasing practices such as procuring operational goods and services without contracts and/or purchase orders when required to do so. • Revise the purchasing chapter of the municipal c ode and associated administrative policies and procedures to reflect best practices, provide greater clarity and internal consistency, and ensure compliance with changes in federal and state law.
• Eliminate paper -based purchasing, payment, and monitoring p rocedures by automating business systems.
To address these observations and recommendations, a staffing request for a new Purchasing Agent position at an estimated annual cost of approximately $199,000 was included in the FY 2024 Budget Study Session mat erials provided to Council on April 25, 2023; with the intent that a Buyer position with an estimated annual cost of approximately $159,000 might be requested in FY 2025 pending further review and analysis of need by the Purchasing Agent over the course of FY 2024. To provide clarity and address Council questions raised at the Budget Study Session, Table 1 below provides Examples of Responsibilities and Distinguishing Characteristics of Purchasing Agent and Buyer positions:
Table 1 - Examples of Responsibilities of Purchasing Agent and Buyer Positions Position Examples of Responsibilities Distinguishing Characteristics Purchasing
Agent
Essential functions include the following:
• Plan, direct and supervise work of the
Purchasing Division and manage assigned
programs.
• Advise elected officials, department heads,
managers and staff on procurement matters
of particular interest, sensitivity or legal
consequence.
• Interpret procurement-related policies, laws
and regulations.
• Conduct the most complex procurements.
• Review purchase requests for compliance
with policies and procedures. And approve
purchase orders and contracts as assigned.
• Collect and analyze data for fact-based
decision-making.
• Develop strategic procurement plans and
programs.
• Stay informed on purchasing trends, laws
and regulations to ensure compliance and
effective functioning.
• Conduct training on purchasing policies and
procedures.
Distinguishing characteristics
from a buyer position include the
following:
• Leads and manages the
Purchasing Division
• Conduct the most
complex procurements
• Works with considerable
independence
• Responds to bid protest
actions
• Interfaces with city
attorney
• Typically requires a
higher level of education,
knowledge, skills,
abilities and professional
certification
Buyer Essential functions, under direction of the Distinguishing characteristics from a purchasing agent position
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Purchasing System Organizational Assessment Page 4 of 5 Position Examples of Responsibilities Distinguishing Characteristics purchasing agent, include the following:
• Assist departments with purchasing-related
activities.
• Conduct solicitations for the purchase
supplies, materials, equipment, and
services; monitor supplier performance.
• Review purchase requisitions for
completeness and compliance.
• Determine where products may be
obtained; secure price quotations and
compares prices interview prospective
vendors.
• Prepare purchasing-related
correspondence through the use of a
variety of templates.
• Advises departments in the development of
specifications.
• Evaluates and analyzes bids; prepares
routine contracts and written reports.
• Participates in the development of
Purchasing Division policies and
procedures.
• Participates in the training of City
employees and provides professional
procurement information and assistance to
City employees at all organizational levels.
include the following:
• Can be a position series
with progressive
responsibility
• Performs technical and
professional duties
under the direction of the
purchasing agent
• May be authorized with
approving purchase
orders
While staff feels that these positions and certainly the Purchasing Agent are high priority, due to fisc al constraints, staff has chosen to defer the request of a Purchasing Agent until at least FY 2025 and the request of a Buyer until at least FY 2026; with duties for both positions being temporarily assumed by the Assistant City Manager and Administrative Analyst in the City Manager’s Office over the course of FY 2024. As Council may recall, purchasing with the City has historically been decentralized amongst all departments with some Purchasing Officer duties being assigned to the former Deputy City Manager; supported by the Administrative Analyst and the Executive Assistant within the City Manager’s Office as well as Accounts Payable (AP) staff within the Finance Department. Due to vacancies in the City Manager’s Office starting in September 2022 , the Finance Director was temporarily assigned Purchasing Officer duties pending the completion of the Purchasing System Organizational Assessment .
Staff feels that having the Assistant City Manager and Administrative Analyst assume these duties can be a workable, temporary solution, but continues to recommend that additional expert resources be considered for FY 2025. For reference, the City of Cupertino, with similar needs to the City of Campbell, had a different consult ing firm (Moss Adams) perform a Procureme nt Operational Review in FY 2022. As a result of this review, the City of Cupertino approved a budget of approximately $369,000 in FY 2023 for a new Purchasing program, which included the addition of one new Purchasing Manager position. While staff has c hosen to defer staffing requests until at least FY 2025, Council may also choose to provide staff with direction to include new purchasing 13 Packet Pg. 91
Purchasing System Organizational Assessment Page 5 of 5 staffing within the FY 2024 Budget. This could be done at the start of the fiscal year or at any point over the course of the fiscal year dependent on need and fiscal resources.
FISCAL IMPACT
None. Council is only asked to review and accept these reports at this time and is not asked to take any action on them, but may wish to use the recommendations contained within to inform future budgetary decisions and allocations of fiscal resources.
ALTERNATIVES
1) Direct staff to include new purchasing staffing within the FY 2024 Budget. 2) Provide staff with other direction.
Prepared by:
Will Fuentes, Finance Director
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Purchasing System Organizational Assessment
b. Draft Implementation Action Plan (IAP)
c. Agenda Report - Tuesday, January 18, 2022
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April 2023
City of Campbell
Purchasing System Organizational Assessment
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Attachment: Purchasing System Organizational Assessment (Purchasing System Organizational Assessment)
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Attachment: Purchasing System Organizational Assessment (Purchasing System Organizational Assessment) BAKER TILLY • 1730 MADISON ROAD • CINCINNATI, OH 45206 • 513 861 5400 • FAX 513 861 3480 • BAKERTILLY.COM A
pril 25, 2023
M
r. Will Fuentes
Finance Director
City of Campbell
70 North First Street
Campbell, CA 95008
Dear Mr. Fuentes:
Baker Tilly, formerly Management Partners, is pleased to transmit this report outlining our recommendations for optimizing the City of Campbell’s decentralized purchasing system. Our engagement focused on evaluating the citywide procurement function for consistency, policy clarity and compliance, and overall best practices and ethics.
Our project team held interviews and small group discussions with 24 staff members from 8 departments and divisions, conducted several follow-up meetings with staff members from the Finance and Public Works Departments and the City Manager’s Office, reviewed existing policies and procedures, analyzed two sets of purchasing transactions, facilitated two process mapping sessions, and evaluated purchasing positions and structures of peer agencies.
Our analysis of purchasing transactions served to validate concerns expressed by City leaders about current purchasing practices that elevate procurement risk, and our process mapping sessions helped to identify opportunities to automate paper-based workflows.
We are providing 34 recommendations for improvement designed to facilitate clarity and consistency of policies and procedures, mitigate risk, and incorporate best procurement practices in a decentralized purchasing environment. We believe that when the recommendations are implemented, these objectives will be achieved.
Our final project deliverable will be a draft Implementation Action Plan (IAP). The IAP will prioritize our recommendations into short-, medium- and longer-term timeframes, provide implementation action steps, and designate a responsible staff member to implement each recommendation. We anticipate sending you the IAP by April 28.
Sincerely,
Carol Jacobs
Managing Director
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Attachment: Purchasing System Organizational Assessment (Purchasing System Organizational Assessment)
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Table of Contents Baker Tilly
i
Table of Contents
Executive Summary .................................................................................................................................. 1 Decentralized Procurement System ............................................................................................... 1 Major Observations .......................................................................................................................... 2 Major Recommendations ................................................................................................................ 2 Organization of the Report ............................................................................................................. 3 Project Approach ....................................................................................................................................... 4 Interview Themes ............................................................................................................................. 4 Process Mapping .............................................................................................................................. 5 Analysis of Purchasing Transactions ............................................................................................. 6 Procurement Function Organization Structure ................................................................................... 8 Partnership Approach Required .................................................................................................. 10 Executive-Level Commitment ...................................................................................................... 10 Procurement Planning .............................................................................................................. 11 Purchasing Practices ............................................................................................................................... 12 Contract Signing Authority Practices .......................................................................................... 13 Contract Templates ................................................................................................................... 14 Bid and Contract Splitting ....................................................................................................... 15 Purchase Orders vs. Check Requests........................................................................................... 15 Central Expense Tracking and Encumbrance Control ............................................................. 16 Staff Augmentation and Recreation Instructor Service Contracts .......................................... 17 Over-reliance on Sourced Purchases ........................................................................................... 18 Purchasing Card Program............................................................................................................. 19 Financial System Limitations ........................................................................................................ 22 Procurement Efficiency and Effectiveness ......................................................................................... 24 Formal Solicitation Requirements ................................................................................................ 24 Purchasing Tracking and Monitoring Systems .......................................................................... 25 Existing Procurement Processes and Procedures Require a Comprehensive Update ......... 26 Training ........................................................................................................................................... 27 Other Business Process Considerations ...................................................................................... 28
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Table of Contents Baker Tilly
ii
Procurement Diversity, Equity and Inclusion ......................................................................... 28 Spend Analysis ......................................................................................................................... 29 Conclusion ................................................................................................................................................ 30 Attachment A – List of Recommendations ......................................................................................... 31 Tables
Table 1. Common Themes from Staff Member Interviews .......................................................... 5 Table 2. Inefficient Processes Identified During the Workflow Mapping Sessions .............. 6 Table 3. Purchasing-related Responsibilities of Operating Departments and the Finance Department................................................................................................................................................. 8 Table 4. Current Purchasing Practices, Impacts, and Associated Best Practices .................... 12 Figures
Figure 1. Purchasing Card Spend by Department, FY 2021-22 .................................................... 20 Figure 2. Top Purchasing Card Citywide Spend Categories by Merchant, FY 2021-22 .......... 21
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Executive Summary Baker Tilly
1 Executive Summary
Baker Tilly was engaged by the City of Campbell to perform a comprehensive assessment of the City’s purchasing policies, procedures, and management information systems. City leaders engaged Baker Tilly for this project to ensure that:
• Purchasing practices are being conducted in accordance with established policies and procedures,
• The purchasing function is optimally structured and
appropriately staffed,
• Policies and procedures reflect best practices, and
• Purchasing workflow processes are optimized for efficiency and effectiveness.
A portion of our work scope included analyzing purchasing transactions, in part to address interests by City executive staff in understanding procurement practices across the City. Our review of purchasing transactions spanned the COVID-19 pandemic, which likely impacted purchasing procedures as the City responded to an unprecedented health emergency.
Another portion of our scope included two workflow mapping sessions, which surfaced process inconsistencies and inefficiencies. These scope items are summarized in the Project Approach section that follows and are incorporated into the observations and recommendations throughout the report.
Decentralized Procurement System
Campbell operates in a completely decentralized environment where end-user departments are responsible for managing their respective procurements regardless of the dollar value of transactions. The Finance Department provides support to departments by offering guidance on procurement procedures when asked, issuing purchase orders where applicable, and processing invoices approved for payment. The Finance Department is also responsible for ensuring policy compliance.
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Executive Summary Baker Tilly
2 Pursuant to the City’s municipal code, the city manager or designee serves as the City’s purchasing officer. Through our interviews with staff members, we learned that a deputy city manager fulfilled that role. After that person retired, responsibility shifted informally to the finance director, who is also the City’s designated risk manager.
City leaders are considering the addition of purchasing resources and possibly positions to mitigate the issues raised in this report.
Baker Tilly was not engaged to conduct an audit of purchasing practices or transactions. Nonetheless, given our collective experiences as practitioners of and consultants to local governments across the country, we are mindful of the issues and risk factors that can give rise to waste and fraud. This report provides our observations regarding the areas where we believe the City may be at risk.
Major Observations
The following represent Baker Tilly’s major observations that informed our recommendations for change and improvement.
• The absence of a purchasing subject matter expert coupled with a highly decentralized procurement system results in varying practices across the City without the necessary oversight that ensures compliance with policies and procedures.
• Manual processes and inconsistent and outdated procedures are inefficient and frustrating to users leading to policy
workarounds.
• Current practices may put the City at risk for incidents of waste and fraud.
• Existing purchasing policy and procedures as well as financial system limitations are contributing to purchasing practices that may expose the City to risk.
• The Finance Department lacks the necessary systems and staffing to effectively provide purchasing oversight and periodic training across the organization to help ensure purchasing policy compliance.
Major Recommendations
We have identified 34 recommendations (see Attachment A) to improve the procurement function throughout the organization. Our major recommendations are summarized below.
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Executive Summary Baker Tilly
3 • Establish two new positions in the Finance Department including a purchasing officer who reports to the finance director and a buyer position who reports to the newly added purchasing officer position.
• Develop a partnership-based procurement system where formally designated department liaisons collaborate with purchasing staff to plan for and conduct procurements.
• Develop specific plans that ensure department directors and management understand purchasing policies and procedures and that they are communicated throughout the organization and consistently applied.
• Modify current purchasing practices such as procuring operational goods and services without contracts and/or purchase orders when required to do so.
• Revise the purchasing chapter of the municipal code and associated administrative policies and procedures to reflect best practices, provide greater clarity and internal consistency, and ensure compliance with changes in federal and state law. • Eliminate paper-based purchasing, payment, and monitoring procedures by automating business systems.
Implementing the recommendations contained in this report will require a considerable effort to ensure that the decentralized purchasing system is optimized for efficiency, effectiveness, compliance, and minimal risk exposure. In support of these objectives, our final project deliverable will be a draft Implementation Action Plan (IAP) to aid City staff in prioritizing and making meaningful improvements.
Organization of the Report
This report is organized into the following major sections:
• Project approach
• Procurement function organization structure
• Purchasing practices
• Procurement efficiency and effectiveness
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Project Approach Baker Tilly
4 Project Approach
Our analysis included several approaches and tools to help us gain an understanding of current purchasing practices, including the following:
• A review of existing procurement policies and procedures; • One-on-one interviews and small group discussions with 24 staff members from eight departments and divisions across the organization;
• Meetings with Finance and user department staff members (e.g., the City Clerk’s Office and Public Works);
• Analysis of purchasing transactions made by purchase order, purchasing card, and check request;
• Two process mapping sessions, one of which addressed a formal request for proposals (RFP) process and the other to evaluate steps to request and close out a purchase order;
• Comparative analysis of peer agencies with respect to purchasing positions and structure (provided under separate cover to the City); and
• Industry best practices research.
The remainder of this section summarizes the common themes from the staff interviews and small group discussions, provides an overview of the process mapping work, and identifies key takeaways from the analysis of purchasing transactions.
Interview Themes
Conducting interviews is an important tool Baker Tilly uses to understand what is and is not working well. Our interviews are confidential so we can receive candid responses and learn about pain/pinch points and whether they emanate from inefficient or ineffective processes; communication, collaboration, or customer service challenges; or issues from leadership and/or management.
The result of the interviews is presented in the form of common themes.
Table 1 describes what those interviewed generally believe about the procurement function. The table allocates the common themes into two groups: one for city departments and divisions and one specifically for
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Project Approach Baker Tilly
5 the Finance Department. The two most common themes include a sense that policy and procedural workarounds are routinely occurring and purchasing policies and procedures are outdated and lack clarity/consistency.
Table 1. Common Themes from Staff Member Interviews
City Departments and Divisions Finance Department
• Purchasing policies and procedures lack clarity
and consistency and are outdated.
• Request for proposals/qualifications (RFP/RFQ)
processes vary due to lack of policies and
procedures and guidance.
• There is an interest in training, but it is not
consistently occurring.
• There is considerable frustration with delayed
purchase order and payment approvals.
• Most purchasing and payment approval
processes are inefficient, using manual and
paper-based systems.
• The Finance Department has been slow to
implement automated purchasing and payment
improvements.
• Competitive bidding and contract award
thresholds are too low.
• Policy and procedure workarounds are routinely
occurring.
• There is an inconsistent application of purchasing
procedures across departments due to new staff
and the lack of their training.
• The municipal code and administrative policies and
procedures are not necessarily consistent and there
is a lack of clarity regarding delegation of contract
award authority.
• City employees do not know how or where to access
information about purchasing policies and
procedures.
• There is confusion about purchasing roles and
responsibilities, e.g., obtaining and monitoring
insurance and sureties.
• The check request process is inappropriately being
applied to purchases above $5,000 when a purchase
order should be used.
• There is confusion regarding when and how
solicitations should be conducted.
• Resources are needed to expedite automation of
purchasing processes.
• Efforts to make real improvements cannot be made
without a dedicated purchasing officer.
• Current practices may be exposing the City to risk
and there is an overall sense that policy and
procedural workarounds may be occurring.
Process Mapping
Baker Tilly conducted two process mapping sessions to document the primary activities and steps related to: (1) the purchase order requisition through closeout process and (2) a formal request for proposals (RFP) process. Our initial objective was to create workflow maps based on existing or “as-is” processes to identify opportunities for efficiency improvements.
In consultation with the Finance Department, Baker Tilly mapped the two processes with various user departments chosen because of their different perspectives and knowledge of purchasing procedures including the following divisions and departments:
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Project Approach Baker Tilly
6 • City Manager’s Office
• Community Development
• Finance
• Information Technology
• Public Works Engineering
• Public Works Service Center
• Recreation and Community Services
Once the process maps were validated by City staff, we prepared process maps based on the desired or “to be” state to illustrate recommended changes to the two processes going forward. Both sets of process maps were provided to the City under separate cover.
Table 2 provides examples of inefficiencies and pain/pinch points identified and discussed with session attendees. Associated recommendations to improve process workflows are included throughout this report.
Table 2. Inefficient Processes Identified During the Workflow Mapping Sessions Conducting a Formal Request for Proposals (RFP) Purchase Requisition to Purchase Order Closeout • City Council approval is required prior to the
issuance of every request for proposals (RFP)
process.
• At the time City Council approval is sought,
authorization is requested for the city manager to
award a contract following the RFP process. If
such authorization is not sought, a second Council
report is required to award a contract.
• Due to the lack of clear written procedures or
regular training, staff members who infrequently
conduct RFP processes tend to rely on practices
used by other departments rather than requesting
assistance from Finance employees responsible
for purchasing.
• Standard RFP templates are not being used to
conduct solicitations.
• Different and/or inconsistent methods are being
used by departments to obtain best and final
offers, route contracts for signature, and to reject
non-responsive proposals.
• The purchase requisition to purchase order
closeout process is manual and paper based and
a major source of frustration across city
departments.
• Some of the manual processes are due in part to
financial system limitations.
• Departments use different methods to submit
backup documentation, ranging from insufficient
detail to no backup at all; this results in a delay in
processing purchase orders.
• Requisitions are routinely submitted after a
purchase has already been made in violation of
policy requirements.
• Accounts payable staff members are included in
both purchasing and payment workflows, which
is inconsistent with best practices for appropriate
segregation of duties (internal controls).
Analysis of Purchasing Transactions
As our review progressed, it became apparent that a greater focus on reviewing purchasing transactions was needed to inform our analysis more fully. This was necessary to provide the information requested in the scope of work and to validate common themes and concerns about
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Project Approach Baker Tilly
7 purchasing practices heard during interviews. Accordingly, we reviewed more than one fiscal year’s worth of transactions (July 2021 to October 2022), including those made by purchase order, purchasing card, and check request. Key takeaways from our analyses include the following items:
• Purchases are being made that are not compliant with City policy and procedures.
• A significant number of purchases are directly made without purchase orders.
• Departments are not consistently providing key procurement details when purchase orders are requested, which impacts the ability of the Finance Department to perform necessary policy compliance checks.
• Financial system limitations and policy/procedural
inconsistencies are contributing to concerning practices. • Additional in-depth analysis beyond the scope of this engagement would be required to determine any liability or waste exposure.
When our data analysis was complete, we prepared a PowerPoint presentation of observations and preliminary recommendations that was presented to the finance director, assistant city manager, and city manager.
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Procurement Function Organization Structure Baker Tilly
8 Procurement Function Organization Structure
The procurement function in Campbell is highly decentralized with departments responsible for managing nearly all aspects of the purchasing processes. While it is not uncommon for cities to have decentralized purchasing, such systems require a central support function to serve as a resource to operating departments and ensure compliance with municipal code requirements, and applicable policies and procedures. Table 3 shows the purchasing-related roles and responsibilities of operating departments and the Finance Department, respectively.
Table 3. Purchasing-related Responsibilities of Operating Departments and the Finance Department City Operating Departments Finance Department
• Prepare plans, specifications and scopes of work
• Conduct solicitation processes
• Negotiate price and scope with vendors when
required
• Obtain insurance coverage when required
• Prepare staff reports when required
• Route contracts for signature execution
• Ensure governmental requirements are met
• Facilitate vendor setup in financial system
• Request purchase orders when required
• Submit invoices for payment
• Monitor vendor performance
• Provide procurement process guidance when
requested
• Conduct training when necessary
• Ensure procurement policy and procedural
compliance
• Evaluate procurement risk
• Facilitate vendor setup in financial system
• Process purchase orders and invoice payments
At one point in the past, a deputy city manager performed the roll of Campbell’s purchasing officer (in addition to other duties). After that person’s retirement, responsibility shifted informally to the finance director who is also responsible for all the financial activities of the City, including the risk management function. The finance director does not have sufficient bandwidth or resources to ensure effective, ongoing policy compliance.
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Procurement Function Organization Structure Baker Tilly
9 Currently, Campbell also lacks dedicated procurement subject matter expertise. Adding such expertise would be beneficial not only for performing oversight and control (thereby strengthening the internal control environment) and serving as a resource to departments, but also for providing strategic procurement planning and management, evaluating procurement risk, and implementing ongoing process improvements.
At the City’s request, Baker Tilly conducted a survey of seven cities within Campbell’s geographic region to identify purchasing positions, position functions, and their salary ranges. The cities included Fremont, Milpitas, Mountain View, Palo Alto, Santa Clara, Sunnyvale, and Cupertino. Each jurisdiction has varying degrees of purchasing system centralization and decentralization.
The analysis was intended to inform the City’s decision regarding what position(s) they may wish to add to support the purchasing function, and what salary range(s) may be necessary to be competitive. The survey data were provided under separate cover and includes purchasing positions, salary ranges for each position, organization charts demonstrating how positions are arranged, and job descriptions for each position.
Five of the seven cities surveyed have a dedicated purchasing manager with at least one buyer position (Milpitas, Mountain View, Palo Alto, Santa Clara, and Sunnyvale). The City of Fremont has a finance manager who oversees purchasing and accounts payable (and two buyer positions).
It is interesting to note that Cupertino created a purchasing manager position in Fiscal Year 2022-23 following an internal audit which recommended that the City take steps toward greater centralization of procurement activities and elevate procurement to a strategic function (Cupertino Fiscal Year 2022-23 Adopted Budget
, see page 320). As
indicated in the adopted budget, the purchasing manager will be responsible for managing the internal audit implementation plan, providing central procurement oversight, implementing policies and procedures, and training staff.
Recommendation 1. Establish a purchasing officer
position reporting to the finance director to provide
centralized oversight of the procurement process.
Recommendation 2. Create a buyer position reporting to
the purchasing officer to assist with central oversight and to implement systemwide improvements.
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Procurement Function Organization Structure Baker Tilly
10 Partnership Approach Required
In decentralized environments where departments are responsible for conducting procurement processes, the Finance Department is typically viewed less as a value-added partner and more of a payment facilitator (which is a segregated role performed by the Accounts Payable Division).
In such an environment, the finance, risk management and legal functions are mainly focused on back-end policy compliance. As a result, though, delays often occur at the end of a purchasing process if the procurement was not done in compliance with policy. For example, sources of frustration and delay in Campbell are associated with obtaining appropriate insurance coverage, documentation, and purchase order approval.
Nonetheless, Baker Tilly heard during the interviews that, while department staff members understand they are responsible for conducting procurement processes, they would like to rely on guidance from Finance when it is needed. The establishment of a purchasing officer and the potential addition of a buyer position will help facilitate collaboration with departments.
Framing the purpose of the procurement function as an internal service partner that approaches procurements from a critical path perspective to reduce total cycle time would improve workflow and strengthen relationships between key process stakeholders. The focus would be on a combination of customer service, efficiency, and compliance with City policies.
Recommendation 3. Develop a partnership-based
procurement system where formally designated
department liaisons collaborate with purchasing staff to plan for and conduct procurements.
Executive-Level Commitment
The convergence of several factors including the absence of procurement subject matter expertise, inconsistent policies and procedures, lack of training programs, and a desire to quickly obtain needed goods and services, has placed the City at risk. To effectively address current purchasing practices and make meaningful and sustained improvements, it will be critical to have the full understanding and support of the executive leadership team.
Recommendation 4. Develop a plan for department
directors to ensure that necessary changes are understood and supported by executive leadership, effectively
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11 communicated throughout the organization, and
consistently applied.
Currently, the Finance Department’s role is to provide process guidance.
With additional resource(s) at commensurate levels of expertise, the department would be staffed to post and administer competitive bids or perform other process-related tasks, if such assistance is desired by user departments.
Recommendation 5. Provide opportunities for
purchasing staff members in the Finance Department to
be engaged in all phases of the procurement cycle.
Procurement Planning
Effective procurement planning is an important component of best practice procurement functions. In our experience, many local agencies do not emphasize the importance of procurement planning, especially in decentralized environments when purchasing assistance at the beginning of a process is not maximized or required. Consequently, department staff members may spend weeks or months preparing for and conducting a procurement process without the knowledge or visibility of purchasing staff. This often occurs without sufficient time to move through the contract award and purchase order approval processes (that can be delayed if policies and procedures were not followed).
Recommendation 6. Schedule procurement planning
meetings following annual budget adoption to discuss
and prioritize anticipated procurements. Meetings should be coordinated and scheduled by department purchasing
liaisons.
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12 Purchasing Practices
Baker Tilly has identified several purchasing practices across the City that we believe are important for the City to address in the near term. Again, we did not conduct an audit of each purchase, nor did we review every purchase across all departments. Table 4 is intended as representative of current practices that we observed, the impact of such practices, and the associated best practice to address the issue.
Table 4. Current Purchasing Practices, Impacts, and Associated Best Practices Current Practice1 Impact Best Practice
Exceeding approved
contract/purchase order amounts
without obtaining necessary
approval from the appropriate
award authority.
• Erodes confidence in the integrity of
the public purchasing system.
• Results in a lack of awareness about
contract overages.
• May jeopardize public confidence in
City financial controls.
• Robust internal control
systems to ensure all
contracts are approved by
the appropriate award
authority.
Signing service contracts without
clear authority to legally bind the
City.
• Unfavorable contract terms and
conditions may lead to contract
disputes.
• May result in employee discipline.
• Consistent use of City
contract templates.
• Limit the number of
employees who can execute
contracts.
Splitting purchases into smaller
components to circumvent
competitive bidding/contract
award thresholds and purchase
order requirements.
• Erodes confidence in the integrity of
the public purchasing system.
• Limits full and open competition.
• Is inefficient and may result in higher
costs.
• Strictly prohibit the splitting
of purchases.
Procuring goods and services
without contracts and/or
purchase orders when required to
do so.
• Exposes the City to liability risk.
• May result in expending public funds
without necessary compliance
reviews.
• Is inefficient and may result in higher
costs.
• Limit the use of check
requests to pay for
operational goods and
services.
Making purchases without a
purchase order when one is
already in place or issuing a
separate purchase order if the
first purchase order is exceeded.
• May result in exceeding approval
thresholds.
• Limits the ability to effectively monitor
expenditure levels.
• Require all expenses tied to
a specific purchase order
are recorded against it.
Using augmentation contracts by
firms that typically employ
CalPERS annuitants.
• May expose the City to CalPERS
requirements regarding the
employment of annuitants.
• Require disclosures about
the use of CalPERS
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13 Current Practice1 Impact Best Practice
• Risk of claims by employees of
contract firms.
annuitants from contract
firms.
Using recreation instructor
contracts that lack a provision for
state-mandated reporting of
suspected child abuse; not
ensuring required insurance
coverage is in place.
• Poses liability risk in the event a claim
is filed.
• May damage the City’s reputation and
expose the City to litigation.
• Use of standard contracts
for all recreation
instructors.
• Robust system for
monitoring insurance
compliance.
Employing sole source and
“emergency” purchases as a path
around the purchase order
system.
• Lost opportunities for competition,
best value.
• Erodes confidence in the integrity of
the public purchasing system.
• Clear definitions and
procedures for sole sourced
and emergency purchases.
1These practices were identified through data analysis, document reviews, interviews, and process mapping. They may be occurring in as few as one department or as many as all the departments Baker Tilly interviewed and/or mapped.
The lack of clarity in the City’s existing policy and procedures and their inconsistent application, as well as financial system limitations, are contributing to these purchasing practices. The following sections set forth Baker Tilly’s recommendations to address the issues, all of which will require comprehensive updates to Chapter 3.20 of the municipal code (or purchasing ordinance, titled “Purchasing Procedures”) and associated administrative policies and procedures (Administrative Policies and Procedures: Purchasing Procedures and Payment Methods, hereafter “administrative policies and procedures for purchasing” or “purchasing procedures”).
Contract Signing Authority Practices
Section 3.20.020 of the municipal code establishes the city manager or designee as the purchasing officer and indicates that the duties of the position may be combined with “those of any other office or position(s).” Section 3.20.100 (Authority to Enter and Execute Contracts) authorizes the purchasing officer to approve and sign contracts up to $49,999.99 and authorizes department heads to approve and sign contracts up to $4,999.99.
The city manager (or finance director as the de facto purchasing officer), therefore, is presumed to be the signature authority for contract awards between $4,999.99 and $49,999.99 unless otherwise delegated; however, the City’s policies are not clear as to how or when this authority may be delegated.
As a complicating factor, the purchasing procedures state that the authority to award informal contracts for public works projects (currently up to $200,000 as established by state law) is delegated to director of
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14 public works, city manager, building official, or another appropriate person (Section B. 1, Public Projects, page 6).
In the absence of policy clarity, contracts are signed by department heads and other staff members at various dollar thresholds that would otherwise require the city manager’s signature authorization (or the purchasing officer as delegated).
It is important that the municipal code and associated administrative policies and procedures for purchasing are clear about contract signing authority and require that such signing authorities are observed.
Adhering to these requirements will ensure confidence that the City’s procurement system is being conducted in accordance with best practices and in compliance with expenditure controls intended by the city manager, finance director and policymakers.
Recommendation 7. Revise Chapter 3.20 of the
municipal code to clarify contracting authorities and
their delegation. This should be followed by clear
purchasing procedures to all City staff regarding contract award authority.
Recommendation 8. Establish and implement
management and internal control systems that ensure all contracts are approved by the appropriate award
authority.
Contract Templates
Through our data review we learned that some service contracts with unfavorable terms and conditions are being authorized. This can result in contract disputes down the road or legal action if a dispute arises and the City is then subject to such terms and conditions. This can be especially problematic if employee discipline ensues.
If staff members are presented with vendor agreements, the first course of action should be to indicate that the City prefers to use its own contract template. If the vendor refuses, it will be important to consult with the city manager (or designated purchasing officer), city attorney, or risk manager as appropriate to determine whether the terms and form are acceptable or if a City contract template will be required.
Recommendation 9. Establish and enforce policy and
procedures for the consistent use of contract templates as prepared by the city attorney.
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15 Recommendation 10. Require approval by the designated City authority when use of a vendor contract is proposed.
Bid and Contract Splitting
During our data review, we found instances where purchases were split into smaller components for the purpose of expedience. This practice results in the circumventing of competitive bidding and contract award thresholds required by City policy. The practice limits full and open competition, can result in higher costs, and serves to erode confidence in the integrity of the procurement system; it needs to be carefully monitored.
Recommendation 11. Revise the municipal code and
administrative policies and procedures for purchasing to strictly prohibit the splitting of purchases into separate components.
Purchase Orders vs. Check Requests
Chapter 3.20 of the municipal code includes a provision requiring all goods and services to be procured only by purchase order, except for purchases made under approved petty cash procedures (Section 3.20.040).
In contrast, the purchasing administrative policies and procedures establish a threshold of $5,000 for requiring a purchase order. As a result, a significant amount of goods and services purchases used for city operations are directly made without a purchase order and payments are made by submitting an invoice with a check request form. During Fiscal Year 2021-22, nearly 30% of procurement transactions for goods and services (2,049) were made without a purchase order and paid for by check request (excluding an additional 2,347 transactions made via purchasing card).
Additionally, we noted instances of procuring onsite and consulting services without a purchase order or contract that would include the City’s standard terms and conditions to ensure that vendors appropriately insure and indemnify the City from liability. In the event of a claim or dispute, the City would be challenged to limit its liability due to the lack of an enforceable City contract. This is a significant risk factor.
The purchasing procedures include a provision that indicates check requests can be used to directly purchase and pay for several types of purchases that typically would not require a purchase order, such as refunds, membership dues, subscriptions, expense advances, personal property damage payments, etc., but the practice is more broadly applied to operational good and services.
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16 Recommendation 12. Eliminate the use of check requests to pay for operational goods and services.
Implementation of this recommendation would result in a corresponding increase in purchase orders.
Our data review revealed that operational purchases greater than $5,000 are being made without purchase orders and potentially without executed contracts. (As contracts are not typically sent to the Finance Department or included as backup documentation when requesting purchase orders, we believe it is likely that some purchases are being made without contracts or purchase orders where they would otherwise be required. We are unable to make a full assessment without an in-depth review.) Additionally, we noted instances of purchasing transactions that were paid for by check request even though purchase orders were in place for the same goods and services during the same timeframe.
Recommendation 13. Ensure City contracts and purchase
orders are consistently used when required by policy
and/or to mitigate risk. City leaders may wish to consider lowering the dollar threshold at which a purchase order is required.
Similarly, the Finance Department raised concerns about a high incidence of invoices over $5,000 presented for payment after goods or services have been received that would have required a purchase order. If/when these instances are encountered, the finance director may require a purchase order to be obtained after-the-fact (also called confirming purchase orders).
While requiring a confirming purchase order may be acceptable upon occasion and in compliance with certain policies and procedures, it is important to ensure that this is not a common practice after goods or services have already been provided. From a best practices perspective, eliminating confirming purchase orders is desirable, but this must be accompanied by strong policy provisions and departmental accountability.
Recommendation 14. Eliminate the practice of issuing
confirming purchase orders and limit their occurrence to emergency situations. Applicable purchasing procedures
should also be updated accordingly.
Central Expense Tracking and Encumbrance Control
In our experience, many cities require awarded contracts to be accompanied by purchase orders as a means of encumbrance control and
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17 to facilitate centralized expense tracking. This practice is not consistently followed in Campbell. Consequently, the Finance Department is not aware of a significant number of contracts awarded each year, or whether associated expenses are within contractual and/or budgeted amounts.
Recommendation 15. Require all contracts to be
accompanied by a corresponding purchase order.
Staff Augmentation and Recreation Instructor Service Contracts During our data review, we reviewed purchase transactions with consulting firms that provide staff augmentation services for plan checking and building inspections. This is a typical local government practice. These types of staff augmentation firms often employ retirees from the California Public Employee Retirement Systems (CalPERS) who are presumed under contract to be independent contractors. Retired CalPERS annuitants cannot cumulatively work more than 960 hours for California public agencies in any one fiscal year. This requirement was suspended during the COVID pandemic but the temporary allowance to exceed 960 hours ended in April 2022.
Additionally, a 2021 decision by the California Supreme Court makes it more difficult to justify the use of independent contractors for performing functions that are typically performed by existing employees and may subject public and private employers to claims by contractors that they are in fact performing staff work. A violation of the 960-hour rule can result in a local jurisdiction having to enroll an annuitant in CalPERS, and making an incorrect determination on independent contractor status can open a city to a claim by an independent contractor, both of which would result in adverse financial impacts.
Cities can address these potential impacts by incorporating relevant contract terms such as disclosing CalPERS annuitants and requiring contracted firms to provide reports so that hours spent by annuitants performing staff augmentation functions can be tracked and periodic rotations made. Additionally, cities can benefit from developing a checklist to determine independent contractor status.
Recommendation 16. Require all staff augmentation
firms to disclose CalPERS annuitants who may be used
to support city services and provide monthly reports of billable hours for tracking purposes.
Recommendation 17. Develop and deploy a checklist for
determining independent contractor status.
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18 Like most cities, Campbell also contracts with instructors for various recreation and instructional programs as a necessary means to deliver recreation programs and services. Contracting with instructors, especially those who provide services to children and the elderly, requires careful due diligence to assure that the City is appropriately insured from potential liability claims.
In our review of several contracts for recreation instructors, we noted that endorsement pages were missing from insurance certificates. The policy endorsement pages, not the certificate itself, are the most important factor in verifying that the instructor’s insurance has been extended to the City.
Additionally, state law requires individuals and entities who provide instructional services to minors to report instances of suspected child abuse. From a best practices perspective, instructor contracts should contain provisions regarding this state mandated reporting requirement.
Recommendation 18. Update the City’s contract template
for recreation instructors to include a provision for
reporting suspected child abuse in accordance with state law.
Recommendation 19. Require policy endorsement pages
that verify insurance coverage are submitted with
required insurance certificates.
Recommendation 20. Require sufficient detail is
submitted with each purchase requisition so that policy compliance can be determined.
Over-reliance on Sourced Purchases
In our experience, local agencies tend to over rely on sourced purchases due to the desire to quickly conduct a procurement, coupled with real or perceived delays, by “purchasing” using traditional bidding methods (purchasing in this context consists of legal review, risk management/ insurance requirements, and length of cycle time from bid to award).
Often, sourced contracts are awarded to the same vendor for many years under the justification that they are familiar with city processes and systems and can provide more cost-effective services. Though well meaning, these sentiments are misplaced and impact the integrity of the purchasing system by awarding sourced contracts to favored vendors, limiting competition, and compromising efforts to increase supplier diversity.
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19 Another practice that we encounter is the justification of non-competition, or limited competition, due to “emergency” situations. Most governmental agencies define emergencies as those that pose an imminent threat to life or property or would significantly compromise an agency’s ability to provide essential services. Additionally, when seeking federal reimbursement for expenses incurred during declared emergencies, claims are often denied due to the lack of competition.
The best practice is to incorporate clear definitions and instructions for justifying sourced and/or emergency purchases.
Recommendation 21. Revise the purchasing chapter and
other applicable municipal code provisions to clearly
define sourced and/or emergency purchases. Once the
ordinances are updated, the administrative procedures can be revised to provide instructional examples on justifying sourced purchases.
Purchasing Card Program
Most local agencies have adopted purchasing card programs to facilitate the purchase of lower dollar goods and offsite services (onsite services are typically not allowed due to potential liability). When used and managed appropriately, a purchasing card program is an efficient and effective tool for making small dollar purchases. Purchasing card programs are most effective when robust controls are in place to ensure use is appropriate and consistent with established policies and best practices.
Part of our engagement included the review of purchasing card (p-card) transactions, with a focus on Fiscal Year 2021-22 (total expenditure of $454,000). Our analysis includes the following high-level data points and observations:
• 42% of the City’s workforce have p-cards, which is high for a city the size of Campbell’s.
• 40% of the total FY 2021-22 expenditures were made by the Police Department ($183,000); nine other City departments averaged approximately $30,000 during the same period.
• Monthly p-card limits are high relative to actual spend amounts, suggesting under-utilization.
• The average citywide single transaction limit amount of $3,250 is high in comparison to the average actual spend amount per transaction of $196.
• Wholesale trade and office supplies (equipment, supplies, durable goods, computers, software, telecommunications equipment,
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20 grocery stores, etc.) accounted for 35% of the total spend amount ($157,000).
• Amazon accounted for $51,000, or 11% of the total p-card spend, p
rimarily for office supplies (the average spend for the next 14 top vendors was approximately $8,600).
Figure 1 provides the actual p-card expenditures by City department.
Figure 1. P urchasing Card Spend by Department, FY 2021-22
F
igure 2 describes the expenditure categories for the fiscal year. $183,228
$68,553 $60,196
$44,511 $40,233
$22,041 $18,261 $11,571 $4,879 $380
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
$160,000
$180,000
$200,000
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21 Figure 2. Top Purchasing Card Citywide Spend Categories by Merchant, FY 2021-22
Our review of the purchase card data and related documentation suggests that the City should reassess its purchase card practices with the following overall objectives:
• Determine if 42% of City employees need p-cards.
• Lower spending limits in alignment with actual spending.
From a best practices perspective, p-card utilization should be periodically reviewed to ensure that the purchasing card program is optimized. This includes assessing actual cardholder spending levels relative to transaction limits and making necessary adjustments unless higher limits are needed for emergency purposes.
Recommendation 22. Require that department directors
assess each cardholder’s usage annually and present a
business justification for continued use.
The City’s administrative policies and procedures document on p-cards (“Credit Card Policy” or “policy”) dates to 2014. The purpose of the Credit Card Policy is stated as follows in the first paragraph:
City of Campbell credit cards are assigned for the purpose of emergency or non-recurring expense coverage when there are no $79,308
$77,741
$66,603
$61,118
$58,772
$56,452
0 10,000 20,000 30,000 40,000 50,000 60,000 70,000 80,000 90,000
WHOLESALE TRADE
OFFICE SUPPLIES
OFFICE SERVICES
BUSINESS EXPENSES
TRAVEL
OTHER
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22 other readily available means to pay for goods or services (e.g., conference or seminar reservations, travel costs, and hotel or rental car expenses, depending upon to whom a card is issued).
The policy is just two pages in length and includes a requirement that requests p-cards be submitted to the assistant to the city manager, a position that was converted to a deputy city manager several years ago.
The stated purpose of the policy includes references to using p-cards for “non-recurring” expenses but cites conferences, training, and travel costs as examples, which are actually recurring costs (see also Recommendation 29 regarding the need to update all purchasing-related policies and procedures for clarity and consistency).
The policy contains a section for unauthorized uses, but it is silent as to whether the City has prohibitions on purchases of food outside of conferences, classes, or meetings; alcoholic beverages; or gifts as they may relate to employee recognition events (areas that require policy clarity).
Additionally, the policy suggests that construction or remodeling projects could be paid for with p-cards with pre-approval of the public works director and assistant to the city manager, which is inconsistent with best practices and could result in liability risk if contractors perform work on City property without a contract or insurance in place. Finally, we note that the policy could benefit from stronger accountability provisions regarding the review of monthly statements.
Recommendation 23. Update the purchasing card policy
to ensure it reflects best practices.
The spend data, cardholder usage trends, and outdated procedures suggest that the p-card program should be reviewed in greater detail and in ongoing fashion to ensure it reflects best practices and efficient spending. (Additional analytical detail on p-card transactions was provided under separate cover.)
Recommendation 24. Schedule an independent third-
party review of the purchasing card program and conduct periodic reviews at least every three years thereafter.
Financial System Limitations
The City’s current financial system is limited in functionality that presents challenges to purchasing practice improvements. For example, if a purchase order (PO) amount is exceeded, the system cannot accommodate a change to increase the PO amount. Instead, departments are required to request a new purchase order, without a central internal
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23 control connection to the initial purchase order or a written contract if one was initially required.
Currently, the City has no immediate plans to upgrade the financial system. However, the absence of an automated control system that can centrally track purchasing transactions and tie them back to an initial request compromises the overall internal control framework and contributes to unnecessary risk.
Additionally, purchase requisitions and purchase orders are manually prepared, printed, and filed separately in the Finance Department, and submitted requisitions do not contain sufficient detail to allow Finance to make an informed decision on policy and procedure compliance.
Recommendation 25. Establish necessary controls and
systems so that all expenses tied to a purchase order for a specific purpose are recorded against it. Implementation of this recommendation will require an interim tracking solution until financial system upgrades can be made.
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24 Procurement Efficiency and Effectiveness
This section describes Baker Tilly’s observations and recommendations to improve the overall efficiency and effectiveness of the City’s procurement function.
Formal Solicitation Requirements
The City’s current practice is to obtain City Council approval before issuing a formal solicitation through competitive bidding or via request for proposals (RFP) process (estimated to be greater than $50,000). The practice is required by the purchasing ordinance (Municipal Code Sections 3.20.050 and 3.20.091). The practice is also applied to public works construction bids, although the state law the City follows for such solicitations does not require it. (State law allows the governing body of a local agency to designate approval authority.)
The current practice presents challenges and lengthens the process for efficiently and effectively obtaining bids. It invites City Council involvement in operational details and decisions that are typically best made by professional staff and considerably lengthens the procurement cycle timeframe.
When seeking Council approval before issuing a competitive solicitation, staff reports typically include a recommendation to authorize the city manager to award a contract resulting from the procurement process.
However, if this recommendation is not included in the staff report, a second report must be submitted to recommend a contract award.
Additionally, many of these solicitations include annual renewal provisions, with the opportunity for price escalation, and there is no central tracking system in place to ensure that annual contract renewals conform to the terms of the initial pre-solicitation approval or any renewal terms that may have been included in the solicitation itself.
Baker Tilly recommends eliminating the practice of obtaining Council approval prior to conducting formal solicitations and obtaining such approval after the solicitation is conducted. This would promote transparency and visibility when awarding large contracts, improve
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25 efficiencies by reducing overall cycle times and potential “touches” by Council, and maintain the segregated roles of policy making and administering policies.
Recommendation 26. Eliminate the practice of requesting Council approval prior to conducting formal competitive solicitation processes.
Purchasing Tracking and Monitoring Systems
As previously discussed, current purchasing practices are resulting in unnecessary risk exposure, especially in the areas of contract approvals, expenditure control and tracking, and contracting practices with certain service providers. Directly related to this is how the absence of centralized, consistent, and unified monitoring systems contribute to such exposure. The following are examples of gaps we believe should be addressed:
1. No central database for tracking insurance coverage. Some staff members are unsure who is responsible for obtaining certificates and verifying coverage. Additionally, it is apparent that staff members are not certain how to verify whether the City is actually covered.
2. Performance and/or payment bonds are not always required. The City does not routinely require performance and/or payment bonds (sureties) for lesser maintenance work or public works construction when it may otherwise be desired for limiting liability (project cost is not necessarily indicative of risk).
3. Verification of prevailing wage requirements is inconsistent. The Engineering Division has established verification/monitoring processes for construction work, but other operational divisions that manage contracts where prevailing wage is required may not be doing so or using the system established by Engineering.
4. Policies regarding purchases using Federal grant funds are not clear. The City’s purchasing policy does not contain applicable provisions for following federal procurement standards required for making purchases that use grant funding.
Recommendation 27. Develop and implement system
solutions for monitoring insurance coverage and
contractor sureties and ensuring compliance with
prevailing wage requirements and federal procurement
standards.
Recommendation 28. Review recently awarded
construction and maintenance bidding documents and
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26 contracts to ensure applicable prevailing wage
documentation was verified and is being monitored.
Existing Procurement Processes and Procedures Require a Comprehensive Update
The following procurement efficiency and effectiveness issues emerged during staff interviews, were corroborated during the engagement, and especially highlighted in the process mapping sessions:
• Purchasing policies and procedures are outdated and are not internally consistent, resulting in confusion about roles and responsibilities.
• Purchasing policies and procedures do not adequately reflect changes in federal and state laws for making purchases that use grant funding and for ensuring prevailing wage compliance. • Procurement and payment processes are manual and paper based, causing considerable frustration throughout the City organization.
• Financial system limitations greatly impact effective procurement.
Additionally, the Travel and Expense Reimbursement policy is outdated and is not internally consistent with the policies associated with purchasing (Purchasing Procedures and Payment Methods) and purchasing cards (Credit Card policy). An update to clarify when it is appropriate to use a purchasing card for travel and how to request reimbursement for travel related expenses paid directly by employees is needed.
To reduce confusion, ensure policy compliance and procedural consistency, procurement policies and procedures must be comprehensively updated on a regular basis.
Recommendation 29. Revise the purchasing ordinance
and associated administrative procedures to reflect best practices, provide greater clarity, and ensure compliance with changes in federal and state law.
Manual processes include paper form submittals, printing multiple purchase orders in different colors, paper invoice processing and purchasing card statement processing, pen ink signatures on contracts, etc. Additionally, some departments use varying digital tools for purchasing-related tasks (Adobe and DocuSign). The City also does not use a modern automated software solution for conducting competitive solicitations.
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27 While automating purchasing and payment processes will be time consuming and costly, such updates are necessary for ensuring policy compliance, reducing risk, and increasing efficiency, and must be addressed as resources allow.
Recommendation 30. Allocate resources to automate
purchasing and payment processes.
Recommendation 31. Implement a citywide automated
system for executing contracts.
During our interviews, many staff members indicated that competitive bidding and contract award thresholds were low in comparison to other jurisdictions and should be revisited to account for changes in economic conditions over time. For example, formal sealed bidding is required for purchases estimated to cost more than $50,000, with a contract award required by the City Council.
Based on our experience in conducting purchasing reviews, we concur with this objective. While we support increasing the city manager’s contract award authority, the formal solicitation threshold should be kept as is until improvements in current practices can be assessed. Increasing the dollar threshold required for City Council contract approval is largely based on changing economic conditions over time and the administrative efficiencies that can be gained by reducing the number of staff reports; keeping the formal solicitation threshold lower represents a form of internal control.
Recommendation 32. Increase the city manager’s contract award threshold for goods and services to $100,000 and
index it for periodic adjustments based on economic
conditions. If necessary, the city manager can provide the City Council with regular updates on the number of
contracts awarded.
Training
A consistent theme heard during interviews was the lack of purchasing training, especially in the areas of determining what bidding method to use and how to evaluate submittals resulting from request for proposals/qualifications (RFP/Q) processes. And as we noted, staff members are not sure when insurance is required or how to verify coverage.
As a best practice, conducting regular formal and informal training sessions is essential to increase awareness of policies and procedures,
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28 inform City staff about policy changes and ensure consistent communication. An opportune time to provide training is during new employee orientation sessions as employees begin their tenure with the City.
Such training sessions should include representatives from the City Attorney’s Office, Accounts Payable, and other policy compliance stakeholders so that employees understand respective roles and responsibilities, and the importance of insurance coverage and limiting City liability exposure.
Recommendation 33. Schedule, conduct and record a
training session on purchasing policies and procedures
geared for citywide distribution. Training sessions should be updated and conducted at least once annually
thereafter.
Recommendation 34. Ensure that new employee
orientation sessions include a component about
purchasing policies and procedures.
Other Business Process Considerations
As we have noted, there is a clear need for dedicated procurement subject matter expertise. Once added and the highest priority improvements are underway, the Finance Department can begin to focus on more strategic areas of procurement such as those briefly described below.
Procurement Diversity, Equity and Inclusion
Diversity, equity, and inclusion (DEI) in public procurement has taken on greater significance in the last several years. Establishing goals for contracting with disadvantaged business enterprises has traditionally been associated with procurements using federal or state grant funding, or in large cities or counties with inclusionary policies. However, smaller cities are recognizing the importance of supplier diversity.
Diversity, equity, and inclusion in public procurement has evolved to include:
• Policies and programs that promote the representation and participation of groups of individuals, including people of different ages, races and ethnicities, abilities and disabilities, genders, religions, cultures, and sexual orientation.
• Emphasis on supply chain management to ensure inclusionary factors are considered.
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29 A good resource for information on DEI is the International City/County Management Association’s ICMA Equity and Inclusion Toolkit.
Spend Analysis
Spend analysis1 is a best practice commonly used in the private sector and less so in the public sector. Spend analysis goes well beyond the transaction analysis envisioned for this engagement and digs deeper into supply chain analytics to understand details about when and where a purchase was made, how many suppliers were used, and how much was spent with each supplier. Spend analysis is a powerful tool for fact-based decision making (see Global Procurement Best Practice: Spend Analysis).
Spend analysis is a critical component for the strategic sourcing of procurements, another tool widely used by the private sector to produce the best possible value of commodity or service purchases over the total life cycle. Strategic sourcing can be used by local governments to justify long-term vendor relationships that align with strategic plan elements or where the total cost of ownership over the long term would provide the greatest value by reducing overall agency costs, increasing efficiency, and mitigating supply risks.
Strategic sourcing is commonly used for office supplies, print services, IT hardware, and fleet vehicles/maintenance (see
National Association of
State Procurement Officials Procurement Toolbox: Strategic Sourcing).
1 As noted in this report, approximately 30% of the purchasing transactions we reviewed were made via check request without a purchase order. Additionally, the City does not maximize its use of blanket purchase orders for goods and services used by most departments (a minimum of 30% is considered a best practice by the National Purchasing Institute (NPI)).
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Conclusion Baker Tilly
30 Conclusion
Baker Tilly was engaged to assess the City’s decentralized purchasing system, including the use of best practices. At the outset of our engagement, City leaders expressed concerns about whether current practices were being performed in accordance with established policies and whether policy and procedural updates were needed for clarity and consistency. These concerns were well founded as we observed many purchasing practices that expose the City to unnecessary risk.
Our recommendations for improvement provide the opportunity for City leaders to make meaningful changes in current purchasing practices that will mitigate risk, promote collaboration, enhance process integrity, and increase value and efficiency.
Once we receive your feedback, we will finalize the report and develop a draft Implementation Action Plan to help facilitate positive and sustained procurement system changes.
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Attachment A – List of Recommendations Baker Tilly
31 Attachment A – List of Recommendations
Recommendation 1. Establish a purchasing officer position reporting to the finance director to provide centralized oversight of the procurement process.
Recommendation 2. Create a buyer position reporting to the purchasing officer to assist with central oversight and to implement systemwide improvements.
Recommendation 3. Develop a partnership-based procurement system where formally designated department liaisons collaborate with purchasing staff to plan for and conduct procurements.
Recommendation 4. Develop a plan for department directors to ensure that necessary changes are understood and supported by executive leadership, effectively communicated throughout the organization, and consistently applied.
Recommendation 5. Provide opportunities for purchasing staff members in the Finance Department to be engaged in all phases of the procurement cycle.
Recommendation 6. Schedule procurement planning meetings following annual budget adoption to discuss and prioritize anticipated procurements.
Recommendation 7. Revise Chapter 3.20 of the municipal code to clarify contracting authorities and their delegation.
Recommendation 8. Establish and implement management and internal control systems that ensure all contracts are approved by the appropriate award authority.
Recommendation 9. Establish and enforce policy and procedures for the consistent use of contract templates as prepared by the city attorney.
Recommendation 10. Require approval by the designated City authority when use of a vendor contract is proposed.
Recommendation 11. Revise the municipal code and administrative policies and procedures for purchasing to strictly prohibit the splitting of purchases into separate components.
Recommendation 12. Eliminate the use of check requests to pay for operational goods and services.
Recommendation 13. Ensure City contracts and purchase orders are consistently used when required by policy and/or to mitigate risk.
Recommendation 14. Eliminate the practice of issuing confirming purchase orders and limit their occurrence to emergency situations.
Recommendation 15. Require all contracts to be accompanied by a corresponding purchase order.
Recommendation 16. Require all staff augmentation firms to disclose CalPERS annuitants who may be used to support city services and provide monthly reports of billable hours for tracking purposes.
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Attachment A – List of Recommendations Baker Tilly
32 Recommendation 17. Develop and deploy a checklist for determining independent contractor status.
Recommendation 18. Update the City’s contract template for recreation instructors to include a provision for reporting suspected child abuse in accordance with state law.
Recommendation 19. Require policy endorsement pages that verify insurance coverage are submitted with required insurance certificates.
Recommendation 20. Require sufficient detail is submitted with each purchase requisition so that policy compliance can be determined.
Recommendation 21. Revise the purchasing chapter and other applicable municipal code provisions to clearly define sourced and/or emergency purchases.
Recommendation 22. Require that department directors assess each cardholder’s usage annually and present a business justification for continued use.
Recommendation 23. Update the purchasing card policy to ensure it reflects best practices.
Recommendation 24. Schedule an independent third-party review of the purchasing card program and conduct periodic reviews at least every three years thereafter.
Recommendation 25. Establish necessary controls and systems so that all expenses tied to a purchase order for a specific purpose are recorded against it.
Recommendation 26. Eliminate the practice of requesting Council approval prior to conducting formal competitive solicitation processes.
Recommendation 27. Develop and implement system solutions for monitoring insurance coverage and contractor sureties and ensuring compliance with prevailing wage requirements and federal procurement standards.
Recommendation 28. Review recently awarded construction and maintenance bidding documents and contracts to ensure applicable prevailing wage documentation was verified and is being monitored.
Recommendation 29. Revise the purchasing ordinance and associated administrative procedures to reflect best practices, provide greater clarity, and ensure compliance with changes in federal and state law.
Recommendation 30. Allocate resources to automate purchasing and payment processes.
Recommendation 31. Implement a citywide automated system for executing contracts.
Recommendation 32. Increase the city manager’s contract award threshold for goods and services to $100,000 and index it for periodic adjustments based on economic conditions.
Recommendation 33. Schedule, conduct and record a training session on purchasing policies and procedures geared for citywide distribution.
Recommendation 34. Ensure that new employee orientation sessions include a component about purchasing policies and procedures.
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City of Campbell
Draft Implementation Action Plan
April 2023
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Attachment: Draft Implementation Action Plan (IAP) (Purchasing System Organizational Assessment)
Making the Most of the Draft Implementation Action Plan
Baker Tilly, formerly Management Partners, has developed this draft Implementation Action Plan to assist the City of Campbell with the phasing and scheduling of 34 recommendations in the project report. That report sets forth the analysis leading to each recommendation. The work involved in implementing the recommendations will need to be integrated into the other work of the departments and divisions tasked with their completion, along with appropriate assignments of responsibility and with identification of specific planned completion dates. The draft Action Plan begins that process with guidance about a recommended priority assignment. Priority 1 recommendations are those that we believe are the most important to accomplish without delay or are easy to accomplish. Priority 2 have less importance in the near term or have an added element of complication to complete or require a significant amount of resources (perhaps internal and external) to assist with completion. Priority 3 are the least urgent to complete, either because they require action by a third party over which the Finance Department has no direct control, or due to complexity or their relative importance to department goals.
We suggest that you use this document to prepare a final Action Plan. In doing so, the executive leadership team will need to identify specific target dates for completing implementation activities associated with each recommendation. Additionally, you may want to modify the described activities for implementing an individual recommendation based on internal knowledge of what will be required for completion or adjust the assignment of responsibility based on pending or future workload or other considerations.
Where a draft task calls for an event to occur “regularly” or with a pre-set frequency (e.g., quarterly, monthly), you’ll want to ensure that your implementing procedure or policy is written to accomplish that objective. Prudent implementation of most recommendations will require “circling back” after the work of implementation has begun to fine-tune the work or the milestones based on experience. This step is not explicitly called out for each recommendation; however, assessing the progress of implementation (via “circling back”) should be a part of your normal management system. We would be happy to set up a consultation with you to support the conversion of this draft into the implementation Action Plan you can use to manage.
To turn this draft into the Action Plan that is used to manage implementation, replace the column titled “Priority” with actual completion dates. Target dates can be specific (e.g., September 1) or by month or quarter (e.g., Q3 2024), as appropriate to the individual action.
All of the work to implement the strategies is in addition to the normal work of involved City staff. Baker Tilly has staff associates who are experienced in implementing many of the actions identified in this report. We welcome the opportunity to assist you in doing so, and in any case, we remain available to consult with you in whatever way we can be helpful. Please do not hesitate to contact Pete Gonda at 831-345-0025. Pete can be reached by email at [email protected].
The discipline of successful project planning is basic to successful execution of the work ahead. We hope that you find the draft Action Plan useful in that regard.
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Draft Implementation Action Plan Baker Tilly
1 Rec
No. Recommendation Implementation Steps Priority1
Person
Responsible2 Comments
1 Establish a purchasing officer position reporting to the finance director to provide centralized oversight of the procurement process. • Include a purchasing officer position in the FY 2023-24 Proposed Operating Budget
• Recruit and fill the position
1 Finance director Collaboration with Human
Resources will be important
2 Create a buyer position reporting to the purchasing officer to assist with central oversight and to implement systemwide improvements. • Include a buyer position in the FY 2024-25 Proposed Operating Budget cycle or consider a mid-year adjustment in FY 2023-24 • Recruit and fill the position
2 Finance director Collaboration with Human
Resources will be important
3 Develop a partnership-based procurement system where formally designated department liaisons collaborate with purchasing staff to plan for and conduct procurements.
• Develop and incorporate the partnership framework/concept in a memorandum and distribute to department heads for review and comment
• Discuss this change in approach with the executive leadership team
• Set deadline for identification of purchasing liaisons by department head
• Task the finance director with coordinating the initial meeting with purchasing liaisons to discuss roles and responsibilities 1 City manager Transition to purchasing
officer once hired
In conjunction with
Recommendation 5
4 Develop a plan for department directors to ensure that necessary changes are understood and supported by executive leadership, effectively communicated throughout the organization, and consistently applied.
• Review observations and recommendations from Baker Tilly’s project report at an executive leadership meeting
• Task department heads with communicating the importance of policy and procedural changes to departmental staff
• Obtain feedback from department heads on communications with staff
1 Assistant city
manager
With assistance from the
finance director and/or
consultant support
5 Provide opportunities for purchasing staff members in the Finance Department to be engaged in all phases of the procurement cycle. • Upon hire, schedule meetings with managers from City
departments to discuss opportunities to provide procurement process assistance
• Continuously assess potential opportunities to collaborate with departments on procurement processes and monitor progress • Share success stories with staff
2 Purchasing officer Include reference in
memorandum to be sent by
city manager in conjunction
with Recommendation 3
1Priority 1: Important to accomplish without delay and/or easy to accomplish.
Priority 2: Second tier of importance to accomplish and/or may involve some complexity or time to complete Priority 3: Least urgent to complete and/or may take longer to set up or to execute 2To establish clear accountability there should be a single manager assigned responsibility for completing implementation of each recommendation. Where more than one manager is identified in this column, responsibility should be clarified when the Final Action Plan is prepared.
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2 Rec
No. Recommendation Implementation Steps Priority1
Person
Responsible2 Comments
6 Schedule procurement planning meetings following annual budget adoption to discuss and prioritize anticipated procurements. • Upon hire, notify purchasing liaisons about the annual procurement planning process
• Schedule initial meeting with the liaisons to discuss procurement priorities and establish expectations for cycle times
• Hold annual procurement planning meetings thereafter, or more frequently if required/desired
2 Purchasing officer
7 Revise Chapter 3.20 of the municipal code to clarify contracting authorities and their delegation.
• Discuss necessary code revisions with city manager, assistant city manager, and city attorney
• Draft recommended code revisions for city attorney review • Seek Council approval
• Review revised code chapter with executive leadership team and s
end memorandum to management and executive support staff 2 Finance director In conjunction with
Recommendations 8, 11, 21,
26, 29 and 32
Transition to purchasing
officer once hired; May
require consultant support
8 Establish and implement management and internal control systems that ensure all contracts are approved by the appropriate award authority. • Task assistant city manager with identifying current contract award thresholds for each department and verifying if/how delegated authority was provided
• Communicate contract award authority expectations to
department heads
• Establish consistent dollar thresholds at which delegated c
ontract award authority may be provided
• Implement a formal means of delegating contract award authority to department heads and their staff
• Task the finance director with updating policies and procedures accordingly
1 City manager In conjunction with
Recommendations 7, 11, 21,
26, 29 and 32
T
ransition policy/procedure
updates to purchasing officer
once hired
9 Establish and enforce policy and procedures for the consistent use of contract templates as prepared by the city attorney.
• Prepare and distribute a memorandum to all staff on the required use of contract templates
• Monitor progress and make necessary adjustments
1 City attorney
10 Require approval by the designated City authority when use of a vendor contract is proposed.
• Prepare and distribute a memorandum to all staff on review/ approval process when considering use of vendor-provided co
ntracts
• Monitor progress and make necessary adjustments
1 City attorney
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3 Rec
No. Recommendation Implementation Steps Priority1
Person
Responsible2 Comments
11 Revise the municipal code and administrative policies and procedures for purchasing to strictly prohibit the splitting of purchases into separate components.
• Discuss necessary code revisions with city manager, assistant city manager, and city attorney
• Draft recommended code revisions for city attorney review • Obtain Council approval
• Review revised code chapter with executive leadership team and send memorandum to management and executive support staff 2 Finance director In conjunction with
Recommendations 7, 8, 21,
26, 29 and 32
Transition to purchasing
officer once hired; may
require consultant support
12 Eliminate the use of check requests to pay for operational goods and services.
• Discuss current procedures regarding the appropriate use of check requests with executive leadership team
• Draft a memorandum that clarifies existing procedures and send to all staff
• Task each department head with monitoring progress and periodically updating executive leadership team
• Task the purchasing officer upon hiring with clarifying policy/procedures
1 Assistant city
manager
With support from the finance
director and executive
leadership team
In conjunction with
Recommendation 4
13 Ensure City contracts and purchase orders are consistently used when required by policy and/or to mitigate risk.
• Review examples of concerning purchasing practices with executive leadership team
• Develop a memorandum that clearly describes when contracts and purchase orders are to be used and send to all management and executive support staff
• Evaluate the merits of lowering the dollar threshold for requiring a purchase order and make necessary adjustments
• Monitor and periodically report on progress
2 Finance director With support from the finance
director and executive
leadership team
14 Eliminate the practice of issuing confirming purchase orders and limit their occurrence to emergency situations.
• Discuss current practice and expected improvement outcomes with executive leadership team
• Draft a memorandum that clarifies existing procedures and send to all staff
• Task the finance director with monitoring progress and periodically reporting results
• Task the purchasing officer upon hire with updating
administrative policy/procedures
1 Assistant city
manager
With support from the finance
director and executive
leadership team
In conjunction with
Recommendation 4
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4 Rec
No. Recommendation Implementation Steps Priority1
Person
Responsible2 Comments
15 Require all contracts to be accompanied by a corresponding purchase order.
• Evaluate current financial system capabilities and implement solution as resources allow
3 Finance director May require manual process
until future automated
solution can be implemented
16 Require all staff augmentation firms to disclose CalPERS annuitants who may be used to support City services and provide monthly reports of billable hours for tracking purposes.
• Ask all staff augmentation firms currently under contract with the City to identify CalPERS annuitants providing services to City • Review all staff augmentation contracts currently in use to determine annual hours worked by annuitants
• Ensure existing contracts/contract templates are appropriately amended to include relevant terms and conditions for disclosing annuitants, reporting hours, and periodically rotating annuitants • Monitor hours worked to ensure annuitants do not exceed threshold requirements
2 Community
development
director
With support from city
attorney and human resources
manager, and other
department heads as
applicable
17 Develop and deploy a checklist for determining independent contractor status.
• Send emails to list serves of professional organizations to request sample checklists and procedures
• Draft checklist and associated procedures for executive leadership team review
• Finalize checklist/associated procedures and distribute to department heads
• Provide procedures to purchasing officer for incorporation in administrative policy/procedures and training materials • Periodically review department documentation to ensure independent contractor determinations are appropriately made 2 Human resources
manager
Requires recordkeeping by
City departments
18 Update the City’s contract template for recreation instructors to include a provision for reporting suspected child abuse in accordance with state law.
• Review sample contract provisions provided by Baker Tilly • Draft suggested edits to contract template for city attorney review
• Determine City reporting requirements and develop procedure • Discuss updated provisions with department staff members 1 Recreation and
community
services director
With city attorney support
19 Require policy endorsement pages that verify insurance coverage are submitted with required insurance certificates.
• Discuss additional insured requirements and associated policy endorsements with executive leadership team
• Draft a memorandum that clarifies best practice procedures and send to all staff members
• Task department heads with monitoring progress and
periodically updating executive leadership team
1 Finance director In conjunction with
Recommendation 4
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5 Rec
No. Recommendation Implementation Steps Priority1
Person
Responsible2 Comments
• Task the purchasing officer with incorporating best practice procedures in training materials
20 Require that sufficient detail is submitted with each purchase requisition so that policy compliance can be determined.
• Discuss best practice requirements with executive leadership team
• Draft a memorandum that clarifies best practice requirements and send to all staff
• Task department heads with monitoring progress and
periodically updating executive leadership team
• Task purchasing officer with incorporating best practice procedures in training materials
1 Finance director In conjunction with
Recommendation 4
21 Revise the purchasing chapter and other applicable municipal code provisions to clearly define sourced and/or emergency purchases. • Discuss necessary code revisions with city manager, assistant city manager, and city attorney
• Draft recommended code revisions for city attorney review • Obtain Council approval
• Review revised code chapter with executive leadership team and send memorandum to management and executive support staff 2 Finance director In conjunction with
Recommendations 7, 8, 11,
26, 29 and 32
Transition to purchasing
officer once hired; may
require consultant support
22 Require that department directors assess each cardholder’s usage annually and present a business justification for continued use. • Task department heads with making initial assessment with the goals of reducing the overall number of cards and aligning transaction thresholds with actual spending
• Establish expectations of appropriate card use and monthly statement monitoring with executive leadership team
• Establish a schedule for annual review
• Task the finance director with evaluating business justifications provided by department heads and making necessary changes 1 City manager
23 Update the purchasing card policy to ensure it reflects best practices • Conduct best practices research for incorporation in policy revisions
• Revise the current policy for city manager review/approval and finalize it
• Distribute revised policy to cardholders, approvers and department heads
• Incorporate new procedures in training materials
2 Purchasing officer May require consultant
support
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6 Rec
No. Recommendation Implementation Steps Priority1
Person
Responsible2 Comments
24 Schedule an independent third-party review of the purchasing card program and conduct periodic reviews at least every three years thereafter.
• Solicit proposals for conducting an initial third-party review and establish a shortlist for future reviews
• Share results of initial review with executive leadership team and implement recommendations resulting from the review
• Conduct periodic reviews thereafter
3 Finance director
25 Establish necessary controls and systems so that all expenses tied to a purchase order for a specific purpose are recorded against it. • Develop and deploy an interim manual expense tracking solution • Evaluate options for leveraging existing financial system capabilities
• Solicit proposals to develop functional requirements for a new financial system
• Develop a funding plan and schedule for upgrading the financial system (see Recommendation 30)
• Make necessary upgrades in accordance with funding plan and schedule
3 Finance manager With support from
Information Technology staff
Will require third party
support and/or term limited
position to assist with financial
system upgrade
26 Eliminate the practice of requesting Council approval prior to conducting formal competitive solicitation processes.
• Conduct a survey of peer jurisdictions to determine if Council approval is required before conducting formal competitive solicitations
• Prepare staff report and make recommendations for policy and procedural changes
• Ensure changes are incorporated in municipal code and associated administrative policies and procedures
2 City manager Include similar change for
Council approval of plans and
specifications for construction
projects
In conjunction with
Recommendations 7, 8, 11,
21, 29 and 32
27 Develop and implement system solutions for monitoring insurance coverage and contractor sureties and ensuring compliance with prevailing wage requirements and federal procurement standards. • Review tracking processes currently in use and develop needs assessments for each solution
• Develop funding plans and implementation schedules for inclusion in future budget cycles
• Implement solutions in accordance with funding plans and schedules
3 Public works
director
With support from
Information Technology staff
Will require third party
support
28 Review recently awarded construction and maintenance bidding documents and contracts to ensure applicable prevailing wage documentation was verified and is being monitored.
• Review construction and maintenance bid documents and contracts awarded within the last year to determine if prevailing wage compliance requirements are being followed
• Make necessary changes and monitor progress on ensuring ongoing compliance
1 Public works
director
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7 Rec
No. Recommendation Implementation Steps Priority1
Person
Responsible2 Comments
29 Revise the purchasing ordinance and associated administrative procedures to reflect best practices, provide greater clarity, and ensure compliance with changes in federal and state law.
• Discuss necessary code revisions with city manager, assistant city manager, and city attorney
• Draft recommended code revisions for city attorney review • Obtain Council approval
• Review revised code chapter with executive leadership team and send memorandum to management and executive support staff 2 Finance director In conjunction with
Recommendations 7, 8, 11,
21, 26 and 32
Transition to purchasing
officer once hired; may
require consultant support
30 Allocate resources to automate purchasing and payment processes. • Review current processes and develop priority order needs assessment for system solutions
• Develop functional requirements and system solutions
• Develop a funding plan and schedule for implementing system solution upgrades
• Make necessary upgrades in accordance with funding plan and schedule
3 Purchasing officer With finance manager,
information technology and
third-party support
In conjunction with
Recommendation 25
31 Implement a citywide automated system for executing contracts. • Evaluate existing automated solutions currently in use • Discuss current systems with executive leadership team and determine which system best meets the City’s needs
• Propose funding to implement citywide solution is included in the FY 2023-24 operating budget
• Coordinate implementation
1 City clerk
32 Increase the city manager’s contract award threshold for goods and services to $100,000 and index it for periodic adjustments based on economic conditions.
• Propose threshold change to the City Council and seek approval in concept
• Draft ordinances to Incorporate threshold change in the municipal code
• Obtain City Council approval
• Prepare and provide periodic reports to Council on the number of contracts awarded, if desired
2 Finance director In conjunction with
Recommendations 7, 8, 11,
21, 26 and 29
May require consultant
support
33 Schedule, conduct and record a training session on purchasing policies and procedures geared for citywide distribution.
• Draft presentation in collaboration with key purchasing process stakeholders for finance director review
• Schedule and provide initial training session on updated policies and procedures, and post recording on purchasing intranet site • Update/provide presentation at least once annually
3 Purchasing officer
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8 Rec
No. Recommendation Implementation Steps Priority1
Person
Responsible2 Comments
34 Ensure that new employee orientation sessions include a component about purchasing policies and procedures.
• Draft presentation in collaboration with key purchasing process stakeholders for finance director review
• Obtain new employee orientation session schedule from Human Resources
• Deliver presentation at periodic new employee orientation sessions
3 Purchasing officer In collaboration with Human
Resources Division
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13.c
Packet Pg. 142
Attachment: Agenda Report - Tuesday, January 18, 2022 (Purchasing System Organizational Assessment) /0/1/2/3/4/1/5/6/5/7/8/i255/10/5/1/11/12/3/5/13/i255/14/i255/15/16/7/16/17/5/6/5/7/8/i255/0/16/1/8/7/5/1/13/i255/18 /19/20/21/i255/23/i255/24/25/i255/26/i255 /28/25/25/29/30/21/31/32/i255/33/34/35/21/31/36/32/i255/19/37/38/i255/24/39/40/21/31/i255/36/34/41/41/24/31/39/i255/36/39/19/25/25/i255/19/36/i255/37/21/30/21/36/36/19/31/35/i255/42/19/36/21/38/i255/24/37/i255/39/40/21/i255/36/29/43/21/i255/19/37/38/i255/30/24/44/41/45/21/46/29/39/35/i255 /24/25/i255/39/40/21/i255/24/31/20/19/37/29/43/19/39/29/24/37/47/i255/48/24/31/i255/21/46/19/44/41/45/21/32/i255/19/i255/25/34/45/45/i255/36/21/31/49/29/30/21/i255/30/29/39/35/i255/50/29/39/40/i255/19/i255/45/19/31/20/21/i255/41/24/41/34/45/19/39/29/24/37/i255/44/19/35/i255/40/19/49/21/i255 /20/31/21/19/39/21/31/i255/41/34/31/30/40/19/36/29/37/20/i255/37/21/21/38/36/i255/39/40/19/37/i255/19/i255/36/44/19/45/45/21/31/i255/30/29/39/35/i255/39/40/19/39/i255/30/24/37/39/31/19/30/39/36/i255/24/34/39/i255/36/21/31/49/29/30/21/36/i255/36/34/30/40/i255/19/36/i255/18/24/45/29/30/21/i255 /19/37/38/i255/48/29/31/21/47/i255/i255/51/37/38/i255/38/34/21/i255/39/24/i255/29/39/36/i255/25/29/38/34/30/29/19/31/35/i255/37/19/39/34/31/21/32/i255/41/34/31/30/40/19/36/29/37/20/i255/29/36/i255/24/25/39/21/37/i255/19/i255/25/34/37/30/39/29/24/37/i255/24/25/i255/39/40/21/i255/48/29/37/19/37/30/21/i255 /52/21/41/19/31/39/44/21/37/39/47/i255/i255/i255
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13.c
Packet Pg. 143
Attachment: Agenda Report - Tuesday, January 18, 2022 (Purchasing System Organizational Assessment) /0/1/2/3/4/1/5/6/5/7/8/i255/10/5/1/11/12/3/5/13/i255/14/i255/15/16/7/16/17/5/6/5/7/8/i255/0/16/1/8/7/5/1/13/i255/18 /19/20/21/i255/23/i255/24/25/i255/26/i255 /28/29/30/31/32/21/30/33/24/30/21/34/i255/35/31/19/25/25/i255/30/21/36/24/33/33/21/37/38/35/i255/31/32/19/31/i255/31/32/21/i255/39/40/31/41/i255/19/42/42/30/24/43/21/i255/31/32/21/i255/21/37/36/44/24/35/21/38/i255/30/21/35/24/44/29/31/40/24/37/i255 /45/46/47/47/48/49/50/51/52/53/47/i255/46/55/i255/19/37/38/i255/38/40/35/42/21/37/35/21/i255/56/40/31/32/i255/57/40/38/38/40/37/20/i255/30/21/58/29/40/30/21/33/21/37/31/35/i255/29/37/38/21/30/i255/59/21/36/31/40/24/37/i255/23/60/61/62/60/23/62/45/26/55/i255/24/25/i255 /31/32/21/i255/39/63/39/i255/56/32/40/36/32/i255/35/31/19/31/21/35/i255/31/32/19/31/i255/57/40/38/38/40/37/20/i255/30/21/58/29/40/30/21/33/21/37/31/35/i255/33/19/41/i255/57/21/i255/38/40/35/42/21/37/35/21/38/i255/56/40/31/32/i255/56/32/21/37/i255/64/31/32/21/i255/39/40/31/41/i255 /35/21/21/65/35/i255/31/32/21/i255/35/42/21/36/40/19/44/i255/35/21/30/43/40/36/21/35/34/i255/36/24/37/35/29/44/31/19/31/40/24/37/i255/24/30/i255/19/38/43/40/36/21/i255/40/37/i255/25/40/37/19/37/36/40/19/44/34/i255/21/36/24/37/24/33/40/36/34/i255/19/36/36/24/29/37/31/40/37/20/34/i255 /21/37/20/40/37/21/21/30/40/37/20/34/i255/44/21/20/19/44/34/i255/19/38/33/40/37/40/35/31/30/19/31/40/43/21/i255/24/30/i255/24/31/32/21/30/i255/33/19/31/31/21/30/35/i255/25/30/24/33/i255/42/21/30/35/24/37/35/i255/35/42/21/36/40/19/44/44/41/i255/31/30/19/40/37/21/38/34/i255 /21/66/42/21/30/40/21/37/36/21/38/i255/19/37/38/i255/36/24/33/42/21/31/21/37/31/i255/31/24/i255/42/21/30/25/24/30/33/i255/31/32/21/i255/35/42/21/36/40/19/44/i255/35/21/30/43/40/36/21/35/i255/30/21/58/29/40/30/21/38/60/67/i255/63/19/37/19/20/21/33/21/37/31/i255 /18/19/30/31/37/21/30/35/i255/19/37/38/i255/63/30/60/i255/68/24/37/38/19/i255/19/30/21/i255/42/30/24/43/40/38/40/37/20/i255/25/40/37/19/37/36/40/19/44/i255/36/24/37/35/29/44/31/40/37/20/i255/35/21/30/43/40/36/21/35/i255/19/37/38/i255/19/30/21/i255/40/38/21/19/44/44/41/i255 /35/29/40/31/21/38/i255/31/24/i255/31/32/40/35/i255/56/24/30/65/60/i255/i255/69/32/21/41/i255/19/30/21/i255/31/32/21/i255/44/21/19/38/21/30/35/i255/40/37/i255/31/32/21/40/30/i255/25/40/21/44/38/i255/19/37/38/i255/35/31/19/25/25/i255/40/35/i255/37/24/31/i255/19/56/19/30/21/i255/24/25/i255/24/31/32/21/30/i255 /43/21/37/38/24/30/35/i255/56/32/24/i255/57/30/40/37/20/i255/19/35/i255/33/29/36/32/i255/21/66/42/21/30/40/21/37/36/21/34/i255/35/65/40/44/44/34/i255/19/37/38/i255/42/24/35/40/31/40/43/21/i255/36/44/40/21/37/31/i255/19/36/36/24/44/19/38/21/35/60/i255 /i255
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13.c
Packet Pg. 144
Attachment: Agenda Report - Tuesday, January 18, 2022 (Purchasing System Organizational Assessment) /0/1/2/3/4/1/5/6/5/7/8/i255/10/5/1/11/12/3/5/13/i255/14/i255/15/16/7/16/17/5/6/5/7/8/i255/0/16/1/8/7/5/1/13/i255/18 /19/20/21/i255/23/i255/24/25/i255/23/i255 /27/28/i255/29/24/i255/30/24/31/i255/21/30/31/21/32/i255/33/30/31/24/i255/19/i255/34/24/30/35/36/37/31/19/30/31/i255/19/20/32/21/21/38/21/30/31/i255/25/24/32/i255/39/32/24/34/36/32/21/38/21/30/31/i255/35/21/32/40/33/34/21/35/i255/19/31/i255/31/41/33/35/i255/31/33/38/21/i255 /19/30/42/i255/33/30/35/31/21/19/42/i255/43/19/33/31/i255/31/24/i255/33/30/34/37/36/42/21/i255/33/30/i255/31/41/21/i255/44/45/i255/46/47/46/48/i255/49/36/42/20/21/31/28/i255 /i255
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Attachment: Agenda Report - Tuesday, January 18, 2022 (Purchasing System Organizational Assessment)
City
Council
Report
TITLE: Approval of the Plans, Specifications, and Estimate (PS&E), and Authorization for the Public Works Director to Solicit Bid Proposals from the List of Pre -Qualified Contractors, for the Measure O – Library Renovations Project (No. 23-SS) (Resolution/Roll Call Cote)
RECOMMENDED ACTION
That the City Council adopt a resolution approving the plans, specifications, and estimate (PS&E), and authorizing the Public Works Director to solicit bid proposals from the list of pre-qualified contractors, for the Measure O - Library Renovations Project (No. 23-SS).
BACKGROUND
The Campbell Library (Library) is a City facility that has been operated by the Santa Clara County Library District (SCCLD) for over 40 years. Located within the City’s Civic Center Complex, the building was constructed in the early 1970’s and has been operated by the SCCLD through a lease agreement as part of the County’s public library system. Unde r this lease agreement, SCCLD managed the Library’s daily operations which included maintaining the facility’s building systems and mechanical components that supported their programs and operational service needs. Meanwhile, the City maintained responsibility for the overall condition of the building’s infrastructure.
Although the building’s primary use was for Library services, a portion of the lower level was home to the City’s Emergency Operations Center (EOC). However, increasing mechanical failures, inefficient energy resources, and space limitations impacted SCCLD’s ability to effectively operate current and future library programs. In addition, outdated building components and structural deficiencies were occurring more frequently and becoming increasingly more costly.
In November 2018, Campbell voters passed Measure O authorizing the City to issue $50,000,000 in general obligation (GO) bonds to finance the design and construction of a new Police Operations Building (with a new EOC) and renovati ons to the Campbell Library. Of the $50M in Measure O funds available, $20M was originally allocated to each project (Library and Police) with $10M allocated to Shared Improvement Costs.
Later, as the design process began, further allocations were made fr om the $10M in Shared Improvement Costs to the individual projects, resulting in a total Measure O funded project budget of $20.5M for the Library Renovations (No. 23 -SS) and $25M for the Police Operations Building (No. 23-RR).
Item: 14
Category: UNFINISHED BUSINESS
Meeting Date: June 6, 2023
14 Packet Pg. 146
Project 23-SS PSE Page 2 of 5
On May 19, 2020, Jayson Arc hitecture was awarded the Library’s design consultant services contract, with the City Council directing staff to return later for further review and approval of the project’s schematic design. As such, staff returned on April 6, 2021, where the City Coun cil subsequently reviewed and approved the Library’s schematic design and overall proposed concepts. Based on these approved concepts, Jayson Architecture continued working on the plans and specifications that would serve as the eventual blueprint for its construction.
In early 2022, staff issued a Request for Qualifications (RFQ) on behalf of each Measure O Project to solicit contractors who were interested in (and qualified) for invitation to bid on the respective construction projects. After evaluatin g the applications received in response to the respective RFQs, staff determined that all four firms that applied for the Library Renovations Project had met the required qualifications. Upon completion of this selection process, the following contractors were deemed to be qualified and will be invited to bid on the project’s construction contract following Council’s approval of the final plans, specifications, and estimates (PS&E):
1. Gonsalves & Stronck Construction Company, Inc.
2. BHM Construction
3. Lathrop Construction Associates, Inc.
4. BOBO Construction, Inc.
DISCUSSION
Between 2018 and 2023, the Library Renovations Project also received additional funding from various State and local programs. In 2019, the Santa Clara County Library District (SCCLD) cont ributed $510k in funding to the Library project that would be applied to the project’s construction budget. These funds were originally programmed by the SCCLD for infrastructure improvements that would no longer be needed upon completion of the building’ s renovations. Additional funding was received from the California State Library Building Forward Grant Program ($4.7M) and Silicon Valley Clean Energy (SVCE) Demonstration Grant Program ($500k), both of which were based on competitive grant application p rocesses for qualifying improvement projects with energy-efficient upgrades supporting the critical service needs of local library programs and their facilities. The City received these funds upon the execution of their respective grant agreements in Dece mber 2022 (State Library) and April 2023 (SVCE Decarbonization). This funding has been added to the project budget.
Separately, SCCLD has agreed to fund and manage the purchase of the Library’s new fixed furniture and equipment (FF&E). As such, SCCLD will coordinate with staff throughout the procurement process to provide updates on the status of the equipment and subsequent plans for its installation during the construction phase. 14 Packet Pg. 147
Project 23-SS PSE Page 3 of 5
As a result, the additional funds received by these programs created capacity within the Library’s existing budget to address infrastructure improvements that were included in the project’s original scope of work but were later omitted due to budgetary constraints.
With sufficient funding available for their associated re -design and construction costs, the project’s final plans, specifications, and engineer’s estimates (PS&E) will transform the Library’s existing 24,000 square foot site into a new state -of-the-art, all -electric facility; complete with upgrades and amenities that not only enhance the building’s aesthetics and functionality, but also advance the City’s long -term energy conservation efforts and commitment to maintain valuable services to the community.
In January 2023, the City Council approved authorization t o amend the existing consultant services agreement with Jayson Architecture for additional design and engineering services to incorporate (re -design) these elements back into the project’s scope of work. When the re -design work was completed in March 2023 , the City’s construction management firm, Griffin Structures, began their constructability review of the associated plans and specifications (as earlier directed by Council). At the end of their review, Griffin did not find any issues or conflicts with t he re -designed scope of work.
On April 4, 2023, the City Council conducted a Measure O study session to receive updates from staff on project budget allocations, status/timelines, constructability reviews, and construction phasing and staging. During the study session, the Library’s design details were discussed by the City Council and feedback was provided to staff.
Council’s comments were subsequently forwarded to Jayson Architecture for further consideration as preparations were underway to finalize th e project’s PS&E. The completed plans and specifications are available for review at the City Clerk’s office.
As previously mentioned, the Library was initially allocated $20.5M in Measure O funding and has since received additional funding from outsid e sources. With these developments, the following is a summary of the project’s total fund ing (current budget) listed by source:
Source of Funds – Library Project (No. 23-SS)
Funding Source Amount
Measure O ($20M Initial Allocation + $500k Shared Site Work Allocation) $ 20,500,000 State Library Building Forward Grant Program $ 4,718,450 SVCE Decarbonization Demonstration Grant Program $ 500,000 Santa Clara County Library District (SCCLD) $ 510,000 Total Available Funds (current project budget) $ 26,228,450 Later, Jayson Architecture forwarded the project’s final plans and specifications to their subconsultants, Mack 5, to analyze these details and generate the associated cost 14 Packet Pg. 148
Project 23-SS PSE Page 4 of 5
estimate. Based on the results of this effort, the constructi on contract (engineer’s estimate) includes both the base scope of work and the three additional alternates, with a 10% change order construction contingency, all identified as separate project expenditures (see Attachment B). With the cost estimate complet ed, the project’s funds are being allocated as follows:
Use of Funds – Library Project (No. 23-SS)
Costs/Expenditures Amount
Design, Planning, & Management $ 1,815,580
Plan Review / Permits $ 50,000
Construction Contract (Base Cost + (3) Add. Alternates) $ 20,000,000 Change Order Contingency (10% of Construction Contract) $ 2,000,000 Utility Fees (Fire, Water, Electrical/Gas, Sanitary, etc.) $ 125,000 Testing & Special Inspections $ 180,000
Other City Costs / Design Contingencies $ 180,000
Total Costs for Library Project (estimated) $ 24,350,580 With the project’s estimated total ($24.3M), and the funds currently available ($26.2M), the project is projected to have a surplus of approximately $1.84M in Measure O funds.
NEXT STEPS
Staff is recommending City Council approval of the Library’s final PS&E and authorization which would allow staff to invite the project’s list of prequalified contractors to bid on the corresponding construction contract. Should the Council gran t its approval, staff will later return to Council to present the bid results and request approval to award the project’s construction contract at that time.
Based on staff’s projected timeline, the following is an updated tentative schedule for the Library Renovations Project:
Campbell Library Renovations (Project No. 23-SS) Date
Invite list of pre -qualified contractors to submit bid proposals for the Library project’s construction contract. June 26, 2023 Construction Bid Opening August 2, 2023
City Council to award Library Renovations Construction
Contract to the lowest responsible, and responsive bidder September 5, 2023 Start of Library Renovations Construction October 2, 2023 14 Packet Pg. 149
Project 23-SS PSE Page 5 of 5
Completion of Library Renovations Project June of 2025, ±
FISCAL IMPACT
Sufficient funding is available to proceed with the Library Renovations Project in the City’s approved CIP budget for ‘Civic Center Improvements – Library Renovations (Project No. 23-SS).’
ALTERNATIVES
1. Do not proceed with the bid process for the Libr ary Renovations Project at this time.
2. Provide alternative direction to staff.
Prepared by:
Carina Shattuck, Administrative Analyst I
Reviewed by:
Todd Capurso, Director of Public Works
Approved by:
Brian Loventhal, City Manager
Attachment:
a. Resolution
b. Mack 5 - Bid Set Document Cost Estimate Update for Campbell Library Renovation 14 Packet Pg. 150
RESOLUTION NO. ________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CAMPBELL
APPROVING THE PLANS, SPECIFICATIONS, AND ESTIMATE (PS&E) AND
AUTHORIZING THE PUBLIC WORKS DIRECTOR TO SOLICIT BID PROPOSALS FROM THE LIST OF PRE-QUALIFIED CONTRACTORS, FOR THE MEASURE O – LIBRARY RENOVATIONS PROJECT (NO. 23-SS)
WHEREAS, the Campbell Library (Library) is a City facility that has been operated by the Santa Clara County Library District (SCCLD) for over 40 years – through a lease agreement – as part of the County’s public library system; and
WHEREAS, over time, frequent mechanical failures, outdated building components and structural deficiencies were becoming increasingly more costly and impacting SCCLD’s ability to operate current and future library programs; and
WHEREAS, in November 2018, Campbell voters passed Measure O authorizing the City to issue $50,000,000 in general obligation (GO) bonds to finance the design and construction of a new Police Operations Building (with a new EOC) and renovations to the Campbell Library; and
WHEREAS, a total of $20.5M in Measure O funds has been allocated for the Library Renovations project (No. 23-SS); and
WHEREAS, on May 19, 2020, Jayson Architecture was awarded the Library’s design consultant services contract and was followed by the City Council’s approval of the project’s schematic design on April 6, 2021; and
WHEREAS, in early 2022, after evaluating the applications received in response to the Request for Qualifications (RFQ) advertised for construction services, staff deemed the following contractors qualified for invitation to bid on the Library’s construction contract upon the City Council’s approval of the final plans, specifications, and estimates (PS&E):
1. Gonsalves & Stronck Construction Company, In c., 2. BHM Construction, 3. Lathrop Construction Associates, Inc., and 4. BOBO Construction, Inc.; and
WHEREAS, between 2018 and 2023, the Library project also received additional funding from the Santa Clara County Library District ($510k); California State Library Building Forward Grant Program ($4.7M); and Silicon Valley Clean Energy (SVCE) ($500k); and
WHEREAS, these additional funds created capacity within the Library’s existing budget to address infrastructure improvements that were included in the project’s original scope of work but were later omitted due to budgetary constraints; and
WHEREAS, in January 2023, the City Council approved authorization to amend the existing consultant services agreement with Jayson Architecture for additional design and engineering services to incorporate (re -design) these elements back into the project’s scope of work; and
WHEREAS, upon completion of the re -design work in March 2023, Griffin Structures performed a constructability review and granted their subsequent approval of the project’s final plans; and
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Attachment: Resolution (Project 23-SS PSE)
WHEREAS, during the April 4, 2023, Measure O study session , the Library’s design details were discussed by the City Council – with comments forwarded to Jayson Architecture for consideration during their preparations of the project’s final PS&E; and
WHEREAS, as a result, the project’s updated engineer’s estimate includes both the base scope of work and the three add alternates, with a 10% change order construction contingency, all identified as separate expenditures for a total estimated project cost of $24,386,580; and
WHEREAS, based on this total estimate, and the Library’s current budget of $26,228,450, the project is projected to have a surplus of approximately $1.84M in Measure O funds; and
WHEREAS, sufficient funding is available to proceed with the Library Renovations project in the City’s approved CIP budget for ‘Civic Center Improvements – Library Renovations (Project No. 23-SS); and
WHEREAS, staff is recommending City Council approval of the Library’s final PS&E and authorization to invite the project’s list of prequalified contractors to bid on its construction contract.
NOW, THEREFORE, BE IT RESOLVED that the City of Campbell hereby approves the the final plans, specifications, and estimate (PS&E) for the Campbell Library Renovations Project (No. 23 -SS), authorizing the Public Works Director to solicit bid proposals from the project’s list of pre-qualified general contractors; and staff to later return to Council to present the bid results and request approval to award the project’s construction contract at that time.
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 (Project 23-SS PSE)
Bid Set Document Cost Estimate Update
for
Campbell Library
Renovation
1900 Powell Street, Suite 470
Emeryville, CA 94608
ph: 510.595.3020
www.mack5.com
April 27, 2023
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Attachment: Mack 5 - Bid Set Document Cost Estimate Update for Campbell Library Renovation (Project 23-SS PSE) Job #20692
April 27, 2023
CONTENTS Page
1 - 4
5 - 34
35 - 36
37 - 38
Table of Contents
Commentary……………..…………..…………………………...……………………………………… …
Alternates…………………………………….……………………………...…………………………… …
Variance Report………………………………………….……………………………………………… …
Building & Site Improvement…………………….....…………………………………………………… …
14.b
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Attachment: Mack 5 - Bid Set Document Cost Estimate Update for Campbell Library Renovation (Project 23-SS PSE) Bid Set Document Cost Estimate Update
Commentary
Campbell Library
Introduction
Basis of Cost
Assumptions
Exclusions
Risk Register
April 27, 2023