City of Capitola
Special City Council Meeting Agenda
Thursday, May 19, 2022 – 6:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Sam Storey
Vice Mayor: Margaux Keiser
Council Members: Jacques Bertrand, Yvette Brooks, Kristen Brown Special Meeting of the Capitola City Council – 6 PM
All correspondences received prior to 5:00 p.m. on the day preceding a 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 Jacques Bertrand, Yvette Brooks, Kristen Brown, Margaux Keiser, and Mayor Sam Storey.
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.
A. Consider the minutes from the May 4, 2022, special City Council meeting Recommended Action: Approve minutes.
7. General Government / Public Hearings
1 Special City Council Meeting Agenda – May 19, 2022
City of Capitola Page 2
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. Presentation of the Proposed Fiscal Year 2022-23 Budget for the City of Capitola and the Capitola Successor Agency
Recommended Action: Acting as the City Council and Successor Agency, receive the proposed budget, provide staff direction, and either: 1) Continue budget deliberations to the next scheduled joint budget hearing on June 1, 2022, or 2) Direct staff to prepare the documents for final budget adoption at a regular meeting in June and cancel future planned budget hearings.
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:
Online at https://www.cityofcapitola.org/meetings
Spectrum Cable Television channel 8
City of Capitola, California YouTube Channel
To Join Zoom by Computer or Phone:
Meeting ID: 859 6542 0849
Meeting Passcode: 627185
Meeting link:
https://us02web.zoom.us/j/85965420849?pwd=VDNMRFJyRDJSek1xR3hlRDRZME53dz09 Or dial one of these phone numbers: 1 (669) 900 6833, 1 (408) 638 0968, 1 (346) 248 7799 To make 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. You will have three minutes to speak, and emails will be read aloud for no longer than three minutes. They Mayor will announce the public comment period for each agenda item. If you have joined the Zoom Meeting: Use participant option to “raise hand”. The moderator will unmute you
If called in over the phone: Dial *9 on your phone to “raise your hand”. The moderator will unmute you If you want to send an email: During the meeting, email written public comment to [email protected]
o 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
o Emailed comments should be a maximum of 450 words, which corresponds to approximately 3 minutes of speaking time
o 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 2 Special City Council Meeting Agenda – May 19, 2022
City of Capitola Page 3
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: May 19, 2022
From: City Manager Department
Subject: Consider the minutes from the May 4, 2022, special City Council meeting
Recommended Action: Approve minutes.
Discussion: Attached for Council review and approval are the draft minutes from the special City Council meeting held on May 4, 2022.
Attachments:
1. May 4 draft
Report Prepared By: Chloé Woodmansee, City Clerk
Reviewed/Approved By: Jamie Goldstein, City Manager
4 Item 6 A.
City of Capitola
Special City Council Meeting Minutes
Wednesday, May 04, 2022 – 6:00 PM
City Council Chambers
420 Capitola Avenue, Capitola, CA 95010
Mayor: Sam Storey
Vice Mayor: Margaux Keiser
Council Members: Jacques Bertrand, Yvette Brooks, Kristen Brown Special Meeting of the Capitola City Council – 6 PM
1. Roll Call and Pledge of Allegiance
Council Members Jacques Bertrand, Yvette Brooks, Kristen Brown, Margaux Keiser, and Mayor Sam Storey.
2. Additions and Deletions to the Agenda – none
3. Additional Materials – none
4. Oral Communications by Members of the Public – none
5. Staff / City Council Comments – none
6. General Government / Public Hearings
A. Presentation of the Proposed Fiscal Year 2022-23 Budget for the City of Capitola and the Capitola Successor Agency
Recommended Action: Acting as the City Council and Successor Agency, receive the proposed budget, provide staff direction, and continue budget deliberations to the next joint budget hearing scheduled on May 19, 2022.
City Manager Goldstein introduced the budget hearing schedule and the draft budget.
Finance Director Malberg presented the proposed budget.
During the question period, Council members asked:
Council Member Brooks clarified that staff projects a $1 million loss over two to three years when/if the mall revitalization project begins. Staff replied that the PERS trust could be used to address this revenue loss, with Council approval when necessary.
She confirmed that implicit bias training is included in the proposed training budget and asked about the procedure to consider increasing Council compensation.
Mayor Storey asked that $1,500 be included for Art and Cultural sponsorship of the commemorative Begonia Festival Event.
Council Member Brooks asked that $350,000 be moved from updating the library TOT lot to instead assisting with an update at the Jade Street Park play area; and that Council training/travel budget be restored to the typical amount. 5 Item 6 A.
Special City Council Meeting Minutes – May 04, 2022
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Council Member Bertrand asked about the proposed Development Services Technician position in the Public Works Department. Director Jesberg explained some staffing changes.
Recreation Division Manager Bryant-LeBlond replied to a question from Council Member Brooks that Recreation Program scholarships are no longer relying on restricted money from outside organizations.
Council Member Brown confirmed that Capitol Improvement Projects will be presented at the next budget meeting on May 19.
There was no public comment.
Council identified the following topics to be brought back during the May 19 special budget meeting:
Overview of MBASIA budget – Council Member Bertrand
Report on how the BIA and the Chamber use the funds received from the City – Mayor Storey
Preliminary assessment on an inclusive play structure at Jade Street Park, in response to a request to add $150,000 to this project – Mayor Storey/Council Member Brooks
Report on Recreation programming at the Capitola Branch library – Council Member Bertrand
7. Adjournment
The meeting was adjourned at 7:55pm to the next regular meeting of the Capitola City Council on May 12, 2022.
_____________________
Sam Storey, Mayor
ATTEST:
______________________
Chloé Woodmansee, City Clerk
6 Item 6 A.
Capitola City Council
Agenda Report
Meeting: May 19, 2022
From: Finance Department
Subject: Presentation of the Proposed Fiscal Year 2022-23 Budget for the City of Capitola and the Capitola Successor Agency
Recommended Action: Acting as the City Council and Successor Agency, receive the proposed budget, provide staff direction, and either: 1) Continue budget deliberations to the next scheduled joint budget hearing on June 1, 2022, or 2) Direct staff to prepare the documents for final budget adoption at a regular meeting in June and cancel future planned budget hearings.
Discussion: The City of Capitola proposed Fiscal Year (FY) 2022-23 and FY 2023-24 Budget is a two-year financial plan for the City as outlined by Administrative Policy III-3: Financial Management Policies. This year, the plan incorporates the use of additional available resources programmed toward City Council goals and key projects. The proposed budget was prepared based on a combination of known factors, such as increases in CalPERS (Public Employees’ Retirement System) costs, and conservative estimates for both revenues and expenditures.
The budget is the City’s operating plan and a primary mechanism by which the Council’s goals and vision for the City are transmitted to staff for implementation.
The document is organized to present information in several ways. General Fund revenues and expenditures are shown to provide information about longer-term patterns and overall fiscal stability, then revenues and expenditures for the City’s various departments are shown to provide additional detail and information about the City’s programs and projects.
Overall, the FY 2022-23 proposed budget reflects a local economy that is recovering from the fiscal impacts associated with the COVID-19 pandemic. The budget maintains services for residents of Capitola while simultaneously returning essential expenditures as much as possible.
Nevertheless, the City must also remain focused on the long-term budget picture, which includes continuing CalPERS cost increases, and a challenging economy in coming years.
This second budget hearing will provide an overview of the City’s proposed Capital Improvement Program (CIP), Attachment 1, as well as a focused discussion on the following items that were identified by City Council during the special budget hearing on May 4, 2022.
Items Identified on May 4:
1) Staffing:
The proposed budget includes returning the frozen Police Officer position, the partially filled Administrative Records Analyst position, and Receptionist position, as well as adding one three-quarter time Recreation Coordinator/Lifeguard and one full-time Development Services Technician. The proposed budget maintains frozen vacancies for one three-quarter time position and three partially filled positions (representing a total of one and three-quarters (1¾) equivalent positions).
7 Item 7 A.
2) Restricted Transient Occupancy Tax Revenue – Early Childhood & Youth Programs The Early Childhood and Youth Program (ECYP) is estimated to receive $61,000 of restricted Transient Occupancy Tax (TOT) revenues in addition to the estimated June 30, 2022, ending fund balance of $51,000. The first draft of the proposed budget reported a fund balance of $68,000, however, that did not consider $30,000 of anticipated expenditures expected to be incurred prior to June 30, 2022. The proposed budget currently has a placeholder in the Community Grant Program to utilize the $61,000 of revenue for ECYP community grants, however staff has not programmed any of the $51,000 estimated fund balance. Staff seeks direction on:
a) Utilization of $61,000 estimated revenue; either within the Community Grant program or other ECYP related expenditures
b) How to program the $51,000 fund balance; identify potential uses in Recreation and/or maintaining a target fund balance
c) Creating a policy regarding a target fund balance, if any, and the use of restricted ECYP funding within the community grant program and/or recreation division 3) General Fund Balance
The estimated general fund balance on June 30, 2023, is $1.3 million. Traditionally, the City has maintained a target general fund balance of $500,000 (this was increased to $750,000 during the pandemic). In addition to the general fund balance, the City Council established a COVID stabilization account of $600,000 to mitigate the fiscal impacts associated with the pandemic. Now that the recovery from the pandemic is well under way, City Council has converted the COVID stabilization account into a Resiliency Account with a balance of $385,000.
During the first budget hearing on May 4, staff recommended maintaining the $1.3 million fund balance as well as the $385,000 resiliency account until the City is notified of the status on our federal grant request for the Wharf Project and completes discussions with Soquel Union Elementary School District regarding the community center lease. Staff anticipates the outcome of the grant application, and the conclusion of community center discussions will be known in fall/winter of 2022 and suggests revisiting the fund balance during the mid-year budget report. Staff seeks direction on:
a) Does Council support holding onto the majority of fund balance at this time until the community center lease is resolved, and wharf project funding known? Minor Amendments:
Minor budget amendments discussed during the special budget hearing on May 4, 2022, include increasing general fund revenue by $60,000 and a net increase to expenditures of $31,000.
These minor amendments result in an increase of $29,000 to the estimated June 30, 2023, general fund balance and are detailed below:
Village parking revenue: increase $60,000 – include anticipated revenue for 25 parking spaces currently used for temporary outdoor dining. Modifications to the outdoor dining program in June 2022 will have a revenue impact of approximately $60,000 for 24 parking spaces that will be dedicated to temporary outdoor dining. Police Department staffing: increase $31,750 – the first draft of the proposed budget erroneously programmed one and three-quarter Record Technicians and one half-time Administrative Analyst position in the Police Department. This is not representative of the current staffing level and resulted in the proposed budget to be under stated by 8 Item 7 A.
approximately $31,750. The staffing should have been budgeted for one and three-quarter Record Technicians and one full-time Administrative Analyst. City Council training: increase $7,000 – increase City Council Training & Memberships back to pre-pandemic amount of $2,000 per City Council member. Implicit Bias Training: increase $5,000 – add implicit bias training to the personnel division budget within the City Manager’s Department. This will provide funding for ongoing biannual implicit bias training for elected officials and staff to meet City Council goals, and resources for other training opportunities.
Community Grants: decrease $30,000 – moved eligible Homeless Action Partnership homeless shelter costs to successor agency housing special revenue fund. Art and Cultural: increase $1,500 – increase contract services to include begonia event. Universal Design Play Structure: move $150,000 from Library TOT lot to the Jade Street Community Center playground – pending formal Council direction.
FY 2022-23 Council Goals:
The table below shows funding allocated to the FY 2022-23 City Council goals:
Project Funding
Wharf Rehabilitation $1,500,000
Community Center Repairs 150,000
Universal Park Design 150,000
Local Hazzard Mitigation Projects:
Study City Hall options 50,000
Stockton Bridge reinforcement project 350,000
Bluff / Cliff Drive study 50,000
Noble Gulch engineering feasibility analysis 50,000
Fire risk reduction (eucalyptus groves) 50,000
Minimal City Hall maintenance 100,000
EV charging stations 20,000
Bike / Pedestrian safety projects 100,000
Peery Park Bridge maintenance 50,000
Internal staff projects 50,000
Deposit in CalPERS Retirement Trust 500,000
Establish Resiliency Fund 385,000
Total $3,555,000
Additional Items:
Additional items identified by the City Council during the first budget hearing include the following:
Topics to be presented during the budget hearing on May 19:
o Explanation of the impact of online sales tax
o Explanation of Monterey Bay Area Self Insurance Authority (MBASIA) cost increase
o Potential ECYP uses in Recreation
o Update on recreation / youth programming at the Library o Use of Restricted TOT by Capitola Soquel Chamber of Commerce and the BIA o Information about universal design play structure
Topics with further information attached to this report:
9 Item 7 A.
o Detail of Contingency and Emergency Reserve calculations (Attachment 2) o Report on Measure F revenues and expenditures (Attachment 3) Other:
o A report on City’s liability risk related to American Disability Act (ADA) improvements will be provided in a Council memo from the City Attorney o City Council Compensation will be agendized for the July 2022 regular Finance Advisory Committee meeting
The Proposed FY 2022-23 Capital Improvement Program (CIP) includes updates on $2.7 million of projects currently under construction and $4.7 million of ongoing projects funded in prior years.
In addition, the proposed CIP includes $2.8 million of additional funding for City Council key projects including the pavement management program.
The draft budget has been distributed and is available for public review in the City Hall lobby, as well as on the City’s website.
FISCAL IMPACT: The goal of these deliberations is determining the allocation of funds to maintain a balanced budget, provide for essential City services, and support priority projects.
Attachments:
1. FY 2022-23 Capital Improvement Program
2. Summary of Contingency & Emergency Reserve calculations
3. Summary of Measure F revenues & expenditures
Report Prepared By: Jim Malberg, Finance Director
Reviewed By: Chloé Woodmansee, City Clerk
Approved By: Jamie Goldstein, City Manager
10 Item 7 A.
CAPITAL IMPROVEMENT PROJECTS
2022-23 Capital Improvement Budget Report
Prior Project Appropriations and Status
Project General Fund Measure F Grants & Other Transportation Grant RTC Measure D State SB 1 Total Other Funding Sources Total Prior Year Appropriations Expenses to Date Existing Fund Balance Estimated Construction Cost Estimated Fund Balance Status On-going Projects
Monterey & Park Pedestrian Pathway 50,000 $ 200,000 $ 200,000 $ 250,000 $ 30,400 $ 219,600 $ 219,600 $ In re-design Rispin Park 756,290 $ 177,952 $ 177,952 $ 934,242 $ 50,000 $ 884,242 $ 845,000 $ 39,242 $ In final designRoundabout Capitola Ave and Bay Ave Public Outreach 75,000 $ 18,842 $ 18,842 $ 93,842 $ 93,842 $ 93,842 $ To follow undergroundingUtility Undergrounding 137,400 $ $ 137,400 - $ 34,750 $ 102,650 $ 100,000 $ 2,650 $ PG&E project. Const. this 2203 Emergency Power at City Hall Complex 90,000 $ $ 390,000 300,000 $ - $ 390,000 $ 390,000 $ - $ requesting proposalsMeasure F Projects Capitola Wharf Improvements 2,200,000 $ 3,700,000 5,900,000 $ 5,900,000 $ 1,167,860 $ 4,732,140 $ 2022-23 Recommended Appropriations
Project General Fund Measure F Facility Fund Recovery Act Funding RTC Measure D State SB 1 Total 2023 Funding Total Prior
Project
Available
Funding
Total Project
Appropriation
Estimated
Construction Cost
Funding
Balance
New Project Allocations New Project
City Park Universal Design Project 150,000 $ $ 150,000 New Project Stockton Bridge Protection Project 350,000 $ $ 350,000 New Project City Hall Maintenance $ 100,000 100,000 $ New ProjectCommunity Center $ 150,000 150,000 $ New ProjectCapitola Wharf Improvements 400,000 $ 1,100,000 $ $ 4,732,140 1,500,000 $ 6,232,140 $ 7,000,000 $ (767,860) $ Pavement Management $ 230,000 357,000 $ 587,000 $ 587,000 $ Projects Under Construction
Project General Fund Measure F Air Board Grant Transportation Grants RTC Measure D SB 1 Total Funding Project Costs Project Fund Balance 41st Avenue Adaptive Signal Control 100,000 $ 760,000 $ 860,000 $ 860,000 $ - $ Clares & Wharf Traffic Calming 150,000 $ 833,264 $ 264,432 $ 1,247,696 $ 1,153,000 $ 94,696 $ Pavement Management 386,802 235,568 622,370 $ $ 579,700 $ 42,670 Bid summer 2022
PMP report to Council on June 9th
see 2022/23 appropriations below
Status
11 Item 7 A.
FY19/20
Actual
FY20/21
Actual
FY21/22
Amended
FY21/22
Estimated
FY22/23
Proposed
FY23/24
Planned
Contingency Reserve (15%) 2,004,340 1,784,064 2,167,147 2,131,582 2,372,334 2,327,313 Contingency Balance 2,061,346 2,061,346 2,061,346 2,061,346 2,192,346 2,331,846 Over / (Short) of Target 57,006 277,282 (105,801) (70,236) (179,988) 4,533 Emergency Reserve (10%) 1,336,227 1,189,376 1,444,765 1,421,055 1,581,556 1,551,542 Emergency Balance 1,374,206 1,374,206 1,314,206 1,314,206 1,461,506 1,554,506 Over / (Short) of Target $ 37,979 $ 184,830 $ (130,559) $ (106,849) $ (120,050) $ 2,964 Reserve fund target balances are a percentage of general fund expendiutes not including internal service charges and transfers Personnel $9,761,056 $9,127,895 $10,490,560 $10,430,640 $11,346,548 $11,784,145 Contract Services 2,770,878 2,162,571 3,183,690 3,017,065 3,697,677 2,954,942 Training & Memberships 87,559 64,292 107,499 90,393 136,885 134,885 Supplies 501,164 495,355 540,900 547,449 499,500 506,500 Grants 241,612 43,648 125,000 125,000 134,950 134,950
Total GF Expenditures $13,362,270 $11,893,762 $14,447,649 $14,210,548 $15,815,560 $15,515,422 Reserve Fund Calculations
12 Item 7 A.
Measure F Tracking
Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual Budget Actual (Y-T-D) Revenue 495,966 486,191 1,082,662 1,058,912 1,082,663 954,296 900,000 998,637 2,661,291 2,499,399 1,035,066 746,167 4,596,357 4,244,203 Operations (Public Safety) 858,877 998,637
Total Operations - - - - - - 858,877 998,637 - - - - 858,877 998,637 - -
Capital Expenditures - -
Wharf 132,200 70,548 182,663 59,148 982,663 155,202 81,305 1,268,023 366,203 1,035,066 64,302 2,303,089 430,505 Jetty 95,966 18,097 500,000 128,152 (187,557) 11,864 163,268 408,409 321,381 408,409 321,381 Flume 100,000 11,818 400,000 116,210 50,000 17,264 367,294 550,000 512,586 550,000 512,586 2017 Wharf Repairs 47,800 47,800 - - - - 47,800 47,800 47,800 47,800 Beach Loader 100,000 100,000 - - - - 100,000 100,000 100,000 100,000 Grand Ave. Path 20,000 - - - 12,053 20,000 12,053 20,000 12,053 2020 Wharf Repairs 237,557 237,557 237,557 237,557 237,557 237,557 Total Capital Expenditures 495,966 248,263 1,082,663 303,510 1,082,663 433,940 - 611,867 2,631,789 1,597,580 1,035,066 64,302 3,666,855 1,661,882 Total Expenditures 495,966 248,263 1,082,663 303,510 1,082,663 433,940 858,877 1,610,504 2,631,789 1,597,580 1,035,066 64,302 4,525,732 2,660,519 Measure F
FY 2017-18 FY 2018-19 FY 2019-20
Total Actual Receipts
Total Budget / Expenses
FY 2020-21 Subtotal FY 2021-22
13 Item 7 A.