City of Capitola
Special City Council Meeting Agenda
Tuesday, March 01, 2022 – 5:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Sam Storey
Vice Mayor: Margaux Keiser
Council Members: Jacques Bertrand, Yvette Brooks, Kristen Petersen Special Meeting of the Capitola City Council – 5 PM
All correspondences received prior to 5 p.m. on the day preceding a Special Council Meeting will be distributed to Councilmembers to review prior to the meeting. Information submitted after 5 p.m. on that day may not have time to reach Councilmembers, nor be read by them prior to consideration of an item.
1. Roll Call and Pledge of Allegiance
Council Members Kristen Petersen, Jacques Bertrand, Margaux Keiser, Mayor Sam Storey, and Yvette Brooks
2. Additions and Deletions to the Agenda
3. Additional Materials
Additional information submitted to the City after distribution of the agenda packet.
4. Oral Communications by Members of the Public
Please review the Notice of Remote Access for instructions. Oral Communications allows time for members of the Public to address the City Council on any “Consent Item” on tonight’s agenda, or on any topic within the jurisdiction of the City that is not on the “General Government/Public Hearings” section of the Agenda. Members of the public may speak for up to three minutes, unless otherwise specified by the Mayor. Individuals may not speak more than once during Oral Communications. All speakers must address the entire legislative body and will not be permitted to engage in dialogue. A maximum of 30 minutes is set aside for Oral Communications.
5. Staff / City Council Comments
Comments are limited to three minutes.
6. Consent Items
All items listed as “Consent Items” will be enacted by one motion in the form listed below.
There will be no separate discussion on these items prior to the time the Council votes on the action unless members of the City Council request specific items to be discussed for separate review. Items pulled for separate discussion will be considered following General Government. Note that all Ordinances which appear on the public agenda shall be determined to have been read by title and further reading waived. 1 Special City Council Meeting Agenda – March 01, 2022
City of Capitola Page 2
A. Consider Fiscal Year 2022-23 Budget Calendar
Recommended Action: Approve Budget Calendar for Fiscal Year (FY) 2022-23
7. General Government / Public Hearings
All items listed in “General Government / Public Hearings” are intended to provide an opportunity for public discussion of each item listed. The following procedure pertains to each General Government item: 1) Staff explanation; 2) Council questions; 3) Public comment; 4) Council deliberation; 5) Decision.
A. Fiscal Year 2022-23 Budget Principles and Goals
Recommended Action: Adopt the Fiscal Year (FY) 2022-23 budget principles and goals and identify related key projects and programs.
8. Adjournment
_____________________________________________________
Notice of Remote Access
In accordance California Senate Bill 361, the City Council meeting is not physically open to the public and in person attendance cannot be accommodated.
To watch:
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To submit public comment:
When submitting public comment, one comment (via phone or email, not both), per person, per item is allowed. If you send more than one email about the same item, the last received will be read.
- Zoom Meeting (Via Computer or Phone) Link:
If using computer: Use participant option to “raise hand” during the public comment period for the item you wish to speak on. Once unmuted, you will have up to 3 minutes to speak If called in over the phone: Press *9 on your phone to “raise your hand” when the mayor calls for public comment. Once unmuted, you will have up to 3 minutes to speak - Send Email: During the meeting, send comments via email to [email protected] 2 Special City Council Meeting Agenda – March 01, 2022
City of Capitola Page 3
- Emailed comments on items will be accepted after the start of the meeting until the Mayor announces that public comment for that item is closed.
- Emailed comments should be a maximum of 450 words, which corresponds to approximately 3 minutes of speaking time.
- Each emailed comment will be read aloud for up to three minutes and/or displayed on a screen. - Emails received by [email protected] outside of the comment period outlined above will not be included in the record.
Note: Any person seeking to challenge a City Council decision made as a result of a proceeding in which, by law, a hearing is required to be given, evidence is required to be taken, and the discretion in the determination of facts is vested in the City Council, shall be required to commence that court action within ninety (90) days following the date on which the decision becomes final as provided in Code of Civil Procedure §1094.6. Please refer to code of Civil Procedure §1094.6 to determine how to calculate when a decision becomes “final.” Please be advised that in most instances the decision become “final” upon the City Council’s announcement of its decision at the completion of the public hearing. Failure to comply with this 90-day rule will preclude any person from challenging the City Council decision in court.
Notice regarding City Council: The City Council meets on the 2nd and 4th Thursday of each month at 7:00 p.m. (or in no event earlier than 6:00 p.m.), in the City Hall Council Chambers located at 420 Capitola Avenue, Capitola.
Agenda and Agenda Packet Materials: The City Council Agenda and the complete Agenda Packet are available for review on the City’s website: www.cityofcapitola.org and at Capitola City Hall prior to the meeting. Agendas are also available at the Capitola Post Office located at 826 Bay Avenue Capitola. Need more information? Contact the City Clerk’s office at 831-475-7300.
Agenda Materials Distributed after Distribution of the Agenda Packet: Pursuant to Government Code §54957.5, materials related to an agenda item submitted after distribution of the agenda packet are available for public inspection at the Reception Office at City Hall, 420 Capitola Avenue, Capitola, California, during normal business hours.
Americans with Disabilities Act: Disability-related aids or services are available to enable persons with a disability to participate in this meeting consistent with the Federal Americans with Disabilities Act of 1990.
Assisted listening devices are available for individuals with hearing impairments at the meeting in the City Council Chambers. Should you require special accommodations to participate in the meeting due to a disability, please contact the City Clerk’s office at least 24 hours in advance of the meeting at 831-475- 7300. In an effort to accommodate individuals with environmental sensitivities, attendees are requested to refrain from wearing perfumes and other scented products.
Televised Meetings: City Council meetings are cablecast “Live” on Charter Communications Cable TV Channel 8 and are recorded to be rebroadcasted at 8:00 a.m. on the Wednesday following the meetings and at 1:00 p.m. on Saturday following the first rebroadcast on Community Television of Santa Cruz County (Charter Channel 71 and Comcast Channel 25). Meetings are streamed “Live” on the City’s website at www.cityofcapitola.org by clicking on the Home Page link “Meeting Agendas/Videos.” Archived meetings can be viewed from the website at any time.
3 Capitola City Council
Agenda Report
Meeting: March 1, 2022
From: Finance Department
Subject: Consider Fiscal Year 2022-23 Budget Calendar
Recommended Action: Approve Budget Calendar for Fiscal Year (FY) 2022-23 Background: The Capitola Municipal Code requires the City to prepare and disseminate a budget calendar on or before March 1 of any fiscal year. The attached draft calendar provides dates for budget study sessions, hearings, meetings, and other significant budget events.
Discussion: Staff has prepared the attached draft Budget Calendar for FY 2022-23. The budget cycle begins with the Special City Council/Successor Agency Meeting scheduled on March 1, 2022. This meeting will focus on establishing the FY 2022-23 Budget Principles and Goals, which will guide staff’s preparation of the Proposed Budget.
Pursuant to this calendar, the Proposed Budget will be distributed on Friday, April 29, 2022, and the presentation of the City and Successor Agency Budgets is scheduled for a Special Meeting on Wednesday, May 4, 2022. This is a tentative schedule that may be changed as necessary by the City Manager and/or City Council. Some meetings may be cancelled if they become unnecessary based on prior sessions.
Fiscal Impact: None
Attachments:
1. FY 2022-23 Draft Budget Calendar
Report Prepared By: Jim Malberg, Finance Director
Reviewed By: Chloé Woodmansee, City Clerk
Approved By: Jamie Goldstein, City Manager
4 Item 6 A.
CITY OF CAPITOLA
BUDGET CALENDAR – 2022-23 FISCAL YEAR
The City Manager and/or the City Council may change this tentative schedule.
NOTE: Some meetings may be cancelled if they become unnecessary based on prior sessions.
Meeting
Date
2020
Week/Day Nature of Meeting Description
March 1 1
st Tuesday *Regular City
Council/Successor Agency
Establish Budgeting Principles / midyear presentation
March 15 3
rd Tuesday Finance Advisory Committee Finance Advisory Committee to discuss Budget Principles
April 7 1
st Thursday Planning Commission Planning Commission review of the Capital Improvement Program (CIP)
April 29 5
th Friday N/A Proposed budget distribution
May 3
1 st Tuesday Special Finance Advisory
Committee
Finance Advisory Committee to
discuss proposed Budget and draft
recommendations to Council
May 4 1
st Wednesday
*Special
Joint City Council/
Successor Agency
Presentation of City, Successor
Agency & CIP Budgets
May 12 2
nd Thursday
*Regular City
Council/Successor Agency
May 17 3
rd Tuesday Finance Advisory Committee
Finance Advisory Committee to
discuss proposed Budget and
make recommendations to Council
May 19 3
rd Thursday
*Special
Joint City Council/
Successor Agency
Finance Advisory Committee
Presentation Council Deliberations
May 26 4
th Thursday *Regular City
Council/Successor Agency
June 1 1
st Wednesday
*Special
Joint City Council/
Successor Agency
Council Deliberations
June 9 2
nd Thursday *Regular City
Council/Successor Agency
Reports from Finance:
Appropriations Limit Resolution and
Investment Policy
June 14 2
nd Tuesday Special
Finance Advisory Committee
Finance Advisory Committee to
discuss proposed Budget and draft
presentation
June 16 3
rd Thursday
*Special
Joint City Council/
Successor Agency
Final City Council and Successor
Agency Budget deliberations (If
necessary)
June 23 4
th Thursday *Regular City
Council/Successor Agency
Final Adoption of the City and
Successor Agency Budgets and
Pertinent Resolutions
NOTE: Special meetings will begin at 6:00 p.m., all Regular meetings begin at 7:00 p.m. Meetings with an asterisk (*) are held in the City Hall Council Chambers and will be televised “Live” on Charter Communications Cable Channel 8. The Finance Advisory Committee Meetings begins at 6:00 pm and are scheduled to be held in the Community Room.
5 Item 6 A.
Capitola City Council
Agenda Report
Meeting: March 1, 2022
From: Finance Department
Subject: Fiscal Year 2022-23 Budget Principles and Goals Recommended Action: Adopt the Fiscal Year (FY) 2022-23 budget principles and goals and identify related key projects and programs.
Background: Each year the City prepares and adopts an annual budget. The annual budget drives the City’s operations and gives City Council direction to the City Manager regarding day-to-day functions. The budget not only outlines the City’s financial plan, but also establishes the framework in which the City will provide services to the community. Principles and goals identified in the budget establish metrics against which actual performance can be measured.
Discussion: To ensure the prepared draft budget is consistent with the Council’s direction, the City adopts budget principles and goals for each upcoming fiscal year. While the budget principles and goals provide an overarching guide to budget development, the Council can provide more specific direction by identifying key projects/programs. The key projects/programs for the City Council can be specific projects (such as the library or wharf), planning efforts (such as obtaining Coastal Commission certification of zoning ordinance), or service changes (such as implementing changes from the Recreation Strategic Plan).
One important reason to adopt budget principles and identify key projects is to increase focus on the Council’s overall priorities and help to clearly articulate those priorities to Capitola residents and other stakeholders. Staff suggests that the Council identify five or six key projects for the upcoming fiscal year that are consistent with the overall budget principles and goals. At the hearing, staff can help facilitate a Council dialog to develop these projects. Then in preparing the draft budget, staff will integrate the budget principles and key projects, including attainable goals and metrics associated with each key project.
The intent of this item is to discuss Council’s priorities heading into budget development. The proposed budget principles serve as the high-level policy for the budget development, but the key projects allow for more concrete short-term priorities to be developed.
General Budget Principles
The City of Capitola prioritizes the following budget principal categories:
Fiscal Policy Principles
Maintain a balanced budget that ensures ongoing expenditures can be met with ongoing revenues
Use one-time revenues for one-time expenditures
Ensure the budget plans for future cost increases and attainable revenue projections Public Service Principles
Maintain, and improve upon, the transparency of City operations and accessibility of government
Recognize the high priority the community places on the public’s safety 6 Item 7 A.
Analyze future service level increases with their long-term financial impacts to ensure financial stability
Public Improvement Principles
Maintain the City’s infrastructure by providing maximum funding for the pavement management system
Maintain and improve Capitola’s natural resources and sustainable green programs Ensure maintenance and cleanliness of City facilities, sidewalks, and streets Fiscal Year 2021-22
City Council identified preliminary FY 2021-22 Budget Principles and Goals on February 25, 2021, then formally adopted them during the budget process. The status of the adopted FY 2021-22 workplan is as follows:
Fiscal Policy and Public Service
Budget Goal / Key Project Status
Develop options for Council consideration to
address rising CalPERS costs
Ongoing
Work with the Finance Advisory Committee to
identify future revenue options
Ongoing
Continue working with Capitola Mall ownership
group to redevelop the mall
On hold due to COVID-19 pandemic
Work towards Coastal Commission certification
of zoning code update
Completed, May 2021
COVID-19 Response Administer CDBG Grant funds – ongoing Collaborate with regional partners on State Rental
Assistance Program – ongoing
Maintain City Hall operation protocols to ensure
health and safety of public and staff – ongoing
Worked with local restaurateurs to establish
parameters for temporary COVID-19 outdoor
dining – Complete
Transition from COVID-19 response back to
normal operations, monitor revenue impacts from
COVID-19 quickly
Continue to modify health & safety protocols at all City facilities based on information from the CDC, State, &
County. Continually monitoring revenues &
expenditures.
Explore grant opportunities for public safety, CIP
and environmental policies and outreach
programs, CDBG, Generator, etc.
CDD - Active CDBG application under review that
would cover 3 years of food assistance.
PD – received tobacco grant, applying for alcohol
grant
Review parklets in Village (outdoor dining),
Review village hotel parking permits &
Village parking rates on completion of
outdoor dining
• Sidewalk and Street Dining Ordinance adopted in
December 2021. Currently under Coastal
Commission review
Make available free feminine hygiene for all
public restrooms
Complete
Expand emergency response planning and
pursue grants for City Hall generator
$300,000 grant received for emergency power at City
Hall – project in progress
7 Item 7 A.
Have City Council create and set priorities for
community grants
Will be presented to City Council in April 2022
Seek partnership with school district regarding
soccer field
City and School District have been working toward a
revised agreement for Community Center and Jade St
Park. Since COVID is having a large impact on
School District this year, the soccer field has taken a back burner while agreement is finalized.
Partnership with Scotts Valley regarding
recreation summer programs / services
Scotts Valley City Council elected to work with a nonprofit partner to provide their summer program while they conduct an evaluation of their Recreation
Division.
Update Admin Policies On-going
Monterey Park picnic tables To be completed by June 30, 2022 Signage from Pac Cove lots to beach & village Completed Implicit Bias training for staff Will be completed by June 30, 2022 Prioritize affordable housing and building
community relationships
Update Inclusionary Housing Ordinance, Completed
Affordable Housing Nexus Study and Feasibility
Study, Adopted new Affordable housing in-lieu fees
and impact fees.
Public Improvements
CIP Project Project Status Funding Status
41st Ave. Adaptive Signal Control In construction Grant funded Monterey & Park Railroad Station
Park & Pathway
Pathway in design Pathway funded, RTC funding to
follow
Pavement Management Program On-going – in construction Funded annually Rispin Park Bid in late spring 2022 Fully funded
Utility Undergrounding Working with PG&E Funded
Roundabout Design at Capitola
Ave & Bay Ave
TBD following completion of
utility undergrounding
Pre-design and outreach funded
Wharf Improvement Phase I completed; phase II to
be bid in summer 2022 pending
City Council direction
$4.7 million available. Cost
estimate for full project $7 million
Capitola Ave. Sidewalk Completed Funded
Clares Pedestrian Improvements In design – bid spring 2022 Funded Flume Rehabilitation Completed Funded
Library Completed Funded
Jetty Rehabilitation Completed Funded
8 Item 7 A.
Looking Ahead to Fiscal Year 2022-23
During the FY 2021-22 mid-year budget update staff identified approximate amounts of one-time funding and ongoing funding available for budget planning. Looking ahead to FY 2022-23, staff has tentatively identified the following revenue that could be utilized for City goals.
Item Amount
General fund balance $2.4 million (one-time)1
Additional American Rescue Plan funding $250,000 (one-time) FY 2022-23 Measure F revenues $1.1 million (ongoing through FY 2026-27) Additional unallocated ongoing revenues $385,000
FY 2022-23 revenues and expenditures TBD during budget process Expected minimum total available $4.135 million
In general, staff recommends the City maintain a minimum Fund Balance of approximately $500,000, however with the increased uncertainty associated with the current economic climate, staff suggests a minimum fund balance of approximately $750,000. That would leave approximately $3.4 million available to allocate to Council priorities at this time.
Staff has identified potential goals for the coming fiscal year. These efforts are singled-out because they will likely involve significant funding, staff resources, community input, or multijurisdictional coordination if Council determines to prioritize them as goals for FY 2022-23.
Recommended FY 2021-22 ongoing goals to carryover to FY 2022-23: (These projects generally involve significant staff time, but have limited budget impacts) Develop options for Council consideration to address rising CalPERS costs Work with the Finance Advisory Committee to identify future revenue options Continue working with Capitola Mall ownership group to redevelop the mall COVID-19 Response
Transition from COVID-19 response back to normal operations, monitor revenue impacts from COVID-19 quickly
Explore grant opportunities for public safety, CIP and environmental policies and outreach programs, CDBG, Generator, etc.
Complete parklets in Village (outdoor dining),
o Review village hotel parking permits & Village parking program upon completion of outdoor dining
Have City Council create and set priorities for community grants Seek partnership with school district regarding soccer field Update Admin Policies
Prioritize affordable housing and building community relationships and projects Complete previously approved and funded CIP projects
In addition to the recommended ongoing goals listed above, new potential budget goals for FY 2022-23 include:
1 Includes $600,000 in COVID Reserve account
9 Item 7 A.
Fiscal and Public Service – in general these items require limited budgetary allocations but involve significant allocations of staff time to complete.
Housing Element Update (funded with special revenue)
Enhance community outreach
Launch regional bikeshare program
Update comprehensive city fee study
Consider potential ballot measures for 2022
Memorial bench replacement program
Implement bike patrol for Parking Enforcement Officers Update special event permit process
Staff anticipates these projects could be completed with a budget allocation of $50,000.
Potential Public Improvements and Fiscal Goals – in general these projects require both staff time and significant budgetary allocations to complete. The table below suggests rough project cost ranges for each potential project
Item Amount
Wharf Rehabilitation Project $2.3 million required for full funding. Project can be scaled to match budget allocation
Community Center Significant facility needs. Complete building renovation costs likely $1-2 million.
Addressing near-term needs $150,000 -
$400,000
Local Hazzard Mitigation Projects
Funding to study City Hall options $50,000 - $75,000
Stockton Bridge reinforcement project $350,000 - $4 million Bluff / Cliff Drive study $50,000
Noble Gulch engineering feasibility
analysis
$50,000
Fire risk reduction (eucalyptus groves) $20,000 - $100,000 Minimal City Hall maintenance $100,000
McGregor Sidewalk $750,000 - $1 million
Climate action plan projects
Charging stations $10,000 each
Roundabout at Bay/Cap Ave $1.5 million
Bike/Pedestrian safety projects $50,000 +
Peery Park Bridge maintenance $100,000
10 Item 7 A.
Bike Park renovation Potentially grant/donation funded
Allocate funding to Calpers Trust $1 million to reach funding target Pavement management Varies
In addition, Staff is also seeking input from City Council for potential budget goals that are not listed above.
Fiscal Impact: The annual review and revision of Budget Principles and key projects is the first step in the budget process. The Budget Principles clearly articulate the City’s financial management strategies. Staff will incorporate the City Council budget goals into the 1st draft of the proposed FY 2022-23 budget at which time City Council can prioritize the goals based on available resources.
Report Prepared By: Jim Malberg, Finance Director
Reviewed By: Chloé Woodmansee, City Clerk
Approved By: Jamie Goldstein, City Manager
11 Item 7 A.