Del Mar City Council Special Meeting Agenda
Del Mar Town Hall
1050 Camino del Mar, Del Mar, California
May 30 & 31, 2023 City Council Budget Workshop
INFORMATION RECEIVED
AFTER THE COUNCIL AGENDA
WAS DISTRIBUTED
(“Red Dots”)
Council Budget Questions
City Council Budget Workshop
May 30 & 31, 2023
1. How much farther into our work program can we get with the added staff? Council and the community will want to see accomplishments attributable to the staffing increases.
The staff being requested for the Planning Department are necessary in order to efficiently and timely complete the existing Planning Department work plan as identified by the City Council in February 2023, which are largely Tier 1 non-discretionary items that are required per State law. The other two requested positions are operations based and intended to address critical staffing needs in the Community Services and Public Works Department. The costs for these two positions are primarily being covered by a reduction in part-time staffing hours and program revenues.
2. Page 123: How much street can we address with the proposed budget allocations-- $308,500 in 23-24 and $507,500 in 24-25, plus the $391k and $147 k from TRANSNET plus SB1 with totals shown of $745k and 700k in the two budget years at page 132? I’m looking to get an idea of what this can provide.
Unfortunately, we do not have a quantifiable answer at this time. Some streets only need a thin asphalt overlay where other streets need complete full depth repairs (which is three times the price). Public Works construction costs have increased significantly over the last two years and the City has not bid out a large paving project since prior to the pandemic. At that time, the City budgeted over $400,000 a year in paving and the low bid asphalt costs were from $ 2.00/SF (thin overlays) to $5.00/SF (full depth repairs). Reportedly, low bid asphalt costs have increased as much as 40% since then.
During COVID budget reductions, the City spent less than $200,000 per year on paving.
Increasing the budget to $745,000 the first year would provide funding to complete a citywide streets condition assessment ($40,000) and still have over $700,000 remaining for actual paving. Potential streets include Stratford Court, 4th Street to 12th Street (during the 1A Undergrounding Project), Camino Del Mar (CDM) from 4th Street to 9th Street, and Jimmy Durante Boulevard from San Dieguito Drive to Via de la Valle.
Staff’s recommendation for FY 2024 is to proceed with the citywide streets condition assessment, bid out and pave the City’s top priorities (also getting current unit prices for paving projects in Del Mar, which could help the City predict future paving costs), and then reassess the program for future funding/planning.
3. Is Shores Park in the Q budget?
Prior unused funding for the Shores Park Master Planning effort of approximately $34,000 is included in the current year budget and will be carried over to next year if not used in the current year. Since the Shores Park Master Planning effort is currently on hold, there is no additional funding allocated to Shores Park in the Measure Q budget. 1 May 30 & 31, 2023 Item 01
4. Status on Del Mar Civic Center debt? Is refinancing of the loan a possibility? I see it in the cash flow sheets but not elsewhere?
A schedule of the Civic Center outstanding debt service payments will be included in the final budget document that is published on the website after the adoption of the budget. The current interest rate on the debt is 3.24%, which is considered low and it would be unlikely that the City would get a better rate and significantly reduce financing costs if the debt were to be refinanced at this time. This was something staff spent time evaluating during the pandemic when looking for opportunities to reduce overall costs for the City.
5. Are we abandoning the Finnell plan? Sounds like it?
Staff is not abandoning the Finnell Plan (FP), as the current proposed budget meets the Finnell Plan in both years, but believes that minor changes need to be considered in order to create clarity and consistency regarding how the FP calculation is determined. Based on Finance work with staff to evaluate the FP and present any recommended changes to the Finance Committee and Council for consideration, which could be implemented during the Budget Update for the second year of the two-year budget.
6. The budget shows $415k for “Community Support”. Can we have a breakdown of where this goes? I assume the bulk goes to DMVA from their share of TOT? In this context what is meant by “maintenance and operations” and by “contractual services?”
The breakdown for Community Support is as follows:
$292K to DMVA for business support (funded by 1/13 of annual 1% TOT) $60K to DMCC for senior services
$50K to DMVA for economic development
$2K to the Regional Task Force on Homelessness for the Point in Time Count $10K for the Community Support Funding Program (Council grants to local nonprofits)
8. What are the $1,400 in benefits for councilmembers?
The amount includes required City paid Social Security (6.2%) and Medicare (1.45%) taxes.
9. Are there funds in the $344k legal services budget to cover potential litigation over Seaside Ridge?
This funding includes the City Attorney’s base contract amount (monthly retainer) in addition to legal fees charged outside of the monthly retainer, for services related to development projects or otherwise and outside legal fees. The budget is determined based on historical spending in this account and upcoming matters that may require assistance from the City Attorney’s office or outside legal counsel. Depending on the annual volume of claims and litigation or other legal needs of the City, this amount may need to be adjusted during the Midyear or Budget Update process.
2 May 30 & 31, 2023 Item 01
10. Why do we show Household Hazardous Waste as a separate item, and AB 9239 as separate, but not the rest of solid waste handling?
The AB 939 fund was created to record revenues that were obligated to only be used for recycling program expenditures. There are times when new programs or revenue sources are created that require to be reported separately and maintained in a separate fund. The HHW program does not require the City to budget these funds separately, therefore both the expenditure and the money received by RSWA is recorded in the General Fund. Staff is currently evaluating the concept of combining both items to the same program. If that reporting change is done, it will have no impact to the General Fund Contingency.
11. The discussion under City Manager shows grants from the state for the CDM Bridge, but not from the county—didn’t we also get a county grant? Yes, the County of San Diego Board of Supervisors allocated $3.5 million to the project to offset the City’s local match obligation, which was received and recorded in a prior budget.
12. Page 25: The discussion identifies building electrification as happening in 2023— is this still realistic in light of the Berkeley case?
Staff is bringing a recommendation to the City Council on June 5, 2023, regarding the development of a building electrification ordinance for the City of Del Mar given the recent court ruling in the California Restaurant Association v. City of Berkeley.
13. Is consideration of hiring a grant writer, or of expanding Townsend services for this purpose, part of the budget?
The proposed budget does not include hiring a grant writer. The City’s current contract with Townsend Public Affairs (TPA) includes as-needed, a la carte grant writing services on a time and materials basis. To date, the City has been focusing its efforts with TPA on applying for direct State and Federal funding for specific Del Mar projects, with much success (e.g., funding has been secured for the Camino del Mar Bridge Replacement Project, Del Mar River Path Phase 3 Extension Project, and the development of a conceptual design for a living levee. Additional Fiscal Year 2024 State and Federal funding requests for a sand replenishment project, Del Mar River Path Phase 3, and a critical storm drain/sewer infrastructure project are currently pending. Staff has the ability to use TPA for future grants pending Council approval and budget allocation.
14. Page 27: Recites continuing the program for public art at the civic center. Should this be updated in light of council’s recent action?
Yes, this narrative was developed prior to the recent City Council decision regarding placement of permanent art at the Civic Center and will be updated accordingly.
15. Where does the budget address our need for a Prop 218 voting outreach effort re storm water charges?
A Storm Water Rate Study is not included in the proposed budget. Staff’s recommendation is to complete the Prop 218 Water Rate Study/Wastewater Rate Study in 2024, followed by Council consideration of a storm water fee rate study and potential 218 process. 3 May 30 & 31, 2023 Item 01
Prop 218 Water Rate Study is funded 50% to the Water Fund (page 155, included in line item
51.5840.3200) and 50% to the Wastewater Fund (page 174, included in line item
57.5840.3200).
16. Page 38: Reports 432 PRA requests in 2022. Are we looking at ways to reduce the number of PRA claims by posting info on our website, and sending folks there first? Maybe review of strategies to reduce PRA requests should be a city clerk goal on page 39?
Our current PRA software allows for the City to post PRA responses to the City’s website so that members of the public review and obtain information there prior to submitting a PRA request, which we do. Given the legal and transparent nature of the Public Records Act, there is very little that any government agency can do to reduce the number of requests received.
17. Page 52: Why isn’t the city hall debt service shown here under “debt service?” Where is it shown? I see it only in the cash flow sheets at the end.
It will be shown in a separate tab when the final budget document is produced after the budget is adopted.
18. Page 58-59. Am I right this shows we pay about $173k per year for workers comp insurance but expect only about $80k in claims? Can we self-insure to reduce costs? The City is self-insured for workers’ comp but has workers’ comp excess insurance for claims that exceed $125,000 retention. Although this insurance may not be used as frequently, it is a recommended level of coverage that cities are encouraged to have for potential large claims.
19. Page 68: Is work on design guidelines for the business community part of the agenda?
This goal indicates the continuation of implementation of the City’s Design Review process that includes the use of citywide Design Guidelines to guide proposed projects, which includes provisions for commercial development. The work program item related to Objective Design Standards is to establish standards for multi-unit and mixed-use projects.
20. Page 99 and 102: Refers to a zoned tree maintenance program available to the public. If this is a reference to the tree trimming schedule on the website, that is out of date having ended in 2021 https://www.delmar.ca.us/DocumentCenter/View/1667/TreeTrimming-Map?bidId= Yes, which will be updated soon. As you may recall, the City’s Tree Maintenance Program takes care of approximately 1,500 public trees. Pre-COVID, the City would maintain 500 trees per year, therefore maintaining each tree on a three year frequency. The program was postponed during the COVID budget crisis and the program fell behind. The City’s Tree Maintenance Program budget has been reestablished to Pre-COVID levels and the City is currently in a “catch up” phase. Staff is working with the City’s tree maintenance contractor to develop a FY 2024 Maintenance Schedule and will subsequently update the website. 4 May 30 & 31, 2023 Item 01
21. Page 121: Why isn’t there an amount shown for Shores Park? See response to Question #3. The project is on hold, with no activities included in the current work plan authorized by the City Council.
22. Page 128: Shows funds for median improvements--does this include extending reclaimed water to serve these areas? I see extending reclaimed water in the 10 year CIP.
No. The Recycled Water Infrastructure Expansion Project is estimated to cost over $5,000,000 and is being evaluated during the Prop 218 Water Rate Study which will be presented to City Council before the current rates expire in 2024.
23. Page 123: Is the $100k shown here separate from the o/m amounts shown for the civic center?
Yes, this funding is for as-needed major improvement, repairs, and rehabilitation of City facilities.
24. Page 143: Is the public works facility plan to address the long-term relocation of the public works building and yard?
No, that is not a current work plan item nor are any funds budgeted for this activity.
25. Page 146: Shows the 10 year plan for Shores Park as “unknown.” Isn’t it time to start filling in the blanks with reserve markers?
This is a policy question for the City Council. The City Council may provide direction to staff to begin establishing setting aside Measure Q funds for Shores Park. However, the project is on hold at this time, so there is no funding identified in the current proposed budget.
26. I’m pleased to see water recycling expansion in the forecast on page 147.
See Response to Question # 22
27. Attachment C, Pension, item 2: I don’t answer what this is saying—please explain? This whole topic needs explanation, at least for me!
Staff will provide and explanation of the City’s Unfunded Pension Liability and more details regarding the proposed Pension Reserve Policy at the Budget Workshop. 5 May 30 & 31, 2023 Item 01
1 Melinda Gould
From: Carter Chappell <[email protected]>
Sent: Sunday, May 28, 2023 11:21 AM
To: City Clerk Mail Box; Tracy Martinez; Terry Gaasterland; Dwight Worden; Dan Quirk; David Druker; Joe Bride
Cc: Jill And Judd; Phyllis Mirsky; Wayne Dernetz; Henrik Jensen Subject: May 30th and May 31st, 2023 City Council Budget Planning Workshop/ Hoska Alley Storm Drain Repairs and Paving Work
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Dear Mayor and City Council Members,
We are writing regarding your upcoming May 30th and May 31st Budget Planning Workshop. Specifically, we are advocating for the Council’s approval of the Public Works Department’s FY23/FY24 budgeted line of $400,000 for the Hoska Alley storm drainage and paving improvements.
As a reminder, the City initially committed to paving the Hoska Alley in 2016 and the full City Council voted to approve the alley paving at their October 15, 2018 council meeting. Subsequent to this approval, problems with flooding caused by a city installed storm drain were discovered and the Public Works Department engaged an outside engineering company to investigate the flooding and develop alternative remedial design options. The Public Works Department narrative included with your package for your meeting next week states that the work of the outside engineering company, including design options, has been completed.
The Public Works Department is seeking the City Council’s direction regarding the engineering design, environmental permitting and construction of the Hoska Alley work. We urge the Council to provide the requested direction and approve the $400,000 budgeted in FY23/FY24 for the Hoska Alley improvements. While this is a large expenditure, recent experience indicates that pressure on construction costs are not likely to abate. Additionally, the flooding of residences on 8th Street and the contamination created by the unpaved alley must be mitigated.
It’s time to move forward and we thank you for your consideration, Carter and Kathy Chappell
Hoska Drive
Del Mar, CA
cc: Jill Ellis and Judd Westover
Phyllis and Ed Mirsky
Elizabeth and Wayne Dernetz
Henrik Jensen
Sent from my iPad
1 May 30 and 31, 2023 Item 01
1 Melinda Gould
From: City Clerk Mail Box
Subject: FW: Red Dot—Budget workshop— Hoska Alley Repairs and Paving From: Mirsky, Phyllis <[email protected]>
Sent: Sunday, May 28, 2023 1:46 PM
To: City Clerk Mail Box <[email protected]>
Subject: Fwd: Red Dot—Budget workshop— Hoska Alley Repairs and Paving CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Sent from my iPad
Begin forwarded message:
From: "Mirsky, Phyllis" <[email protected]>
Date: May 28, 2023 at 1:27:34 PM MST
To: Tracy Martinez <[email protected]>, Terry Gaasterland <[email protected]>, Dwight Worden <[email protected]>, Dan Quirk <[email protected]>, Dave Drucker <[email protected]>, Joe Bride <[email protected]>
Cc: Jill Ellis <[email protected]>, Wayne Dernetz <[email protected]>, Henrik Jensen <[email protected]>
Subject: Red Dot—Budget workshop— Hoska Alley Repairs and Paving Dear Mayor and City Council Members,
We are writing regarding your upcoming May 30th and May 31st Budget Planning Workshop. Specifically, we are advocating for the Council’s approval of the Public Works Department’s FY23/FY24 budgeted line of $400,000 for the Hoska Alley storm drainage and paving improvements.
We are pleased to see progress in the ongoing efforts to address the long standing problems regarding the Hoska Alley. We urge the Council to support the Public Works Department request regarding the engineering design, environmental permitting and construction of the Hoska Alley work and to provide the requested direction and approve the $400,000 budgeted in FY23/FY24 for the Hoska Alley improvements.
Thank you for your consideration,
Phyllis and Ed Mirsky
605 Hoska Drive
Del Mar, CA
2 May 30 and 31, 2023 Item 01
2 cc: Jill Ellis and Judd Westover
Elizabeth and Wayne Dernetz
Henrik Jensen
Carter and Kathy Chappell
Sent from my iPhone
3 May 30 and 31, 2023 Item 01
1 Melinda Gould
From: Jill Ellis <[email protected]>
Sent: Monday, May 29, 2023 12:25 PM
To: City Clerk Mail Box; Tracy Martinez; Terry Gaasterland; Dwight Worden; Dan Quirk; David Druker; Joe Bride
Cc: Carter Chappell; Phyllis Mirsky; Henrik Wann Jensen; Wayne Dernetz Subject: Red Dot/Budget Workshop/Hoska Alley
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Dear Mayor and City Council Members,
We are writing about the May 30th/May 31st Budget Planning Workshop item regarding Hoska Alley. As long term residents who use that alley daily we urge you to approve the $400,000 expenditure budgeted for the Hoska Alley storm drainage and paving improvements.
We would like to thank the Public Works Department for proceeding with the initial assessment of the Hoska Alley hydrologic and hydraulic analyses and development of initial design alternatives. We would also like to thank the City Council for their commitment to paving the alley and improving the current inadequate drainage situation.
Thank you for your consideration.
Sincerely,
Jill Ellis and Judd Westover
442 8th Street
Del Mar, CA 92014
cc: Carter and Kathy Chappell
Phyllis and Ed Mirsky
Elizabeth and Wayne Dernetz
Henrik Jensen
4 May 30 and 31, 2023 Item 01
1 Melinda Gould
From: City Clerk Mail Box
Subject: FW: Red Dot for City Budget Workshop
From: Kerridge, Carol <[email protected]>
Sent: Wednesday, May 31, 2023 11:28 AM
To: Tracy Martinez <[email protected]>; Dan Quirk <[email protected]>; Dwight Worden-Private <[email protected]>; Terry TG. Gaasterland <[email protected]>; David Druker <[email protected]> Cc: Ashley Jones <[email protected]>
Subject: Red Dot for City Budget Workshop
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
Dear City Council Members,
Thank you so very much for the time and effort you each give to keep our town run smoothly...particularly keeping it financially viable.
I'm writing with concern that our City Staff is recommending that as a town with strong historical environmental concerns, to put the "Riverpath Del Mar" project on the "back burner" for a while. The river path is a much-needed and safe link from the Coast to Crest Trail along the lagoon to the naturally lovely and recently restored Crest Canyon.
I've included a photo and descriptive words from our own Del Mar website to remind you of its beauty.
As a member of the Lagoon Committee, we were all briefed by staff as to the particulars of the construction of the path, and we all unanimously agreed to move forward with this project, but no one (including staff) could understand the increase in estimated cost from when it was first designed till now.
Please consider finding away to keep this project on our "front burner" as it deserves.
Warm regards,
Carol Kerridge
1 May 30 and 31, 2023 Item 01
2 "Originally planned to be part of the Torrey Pines Preserve, Crest Canyon is a small open space park nestled among the residential developments of Del Mar. The canyon is now part of the San Dieguito River Park, and offers a beautiful showcase of coastal sage scrub, chaparral, and some magnificent and rare Torrey Pine trees".
2 May 30 and 31, 2023 Item 01
1 Melinda Gould
From: K Lare <[email protected]>
Sent: Thursday, June 1, 2023 11:32 AM
To: City Clerk Mail Box
Cc: Tracy Martinez; Eddie Lare; Terry TG. Gaasterland; Dave Druker; Dwight Worden-Private; Dan Quirk; Jill Gartman; Carol Kerridge
Subject: Delay of the Lagoon Trail Extension
CAUTION: This email originated from outside of the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.
I was very sorry to hear of the need by the City to propose delaying the construction of the Lagoon Trail Extension. Many residents have pushed for it to go forward for years and another delay is not a good thing. In reading the staff report however, what was even a bit more unsettling was the huge mismatch in the original estimate vs. the current estimate. I can see that the barrier to going forward is insurmountable without another source of funding.
While I agree with the staff's conclusion, I suggest that staff and council take a look at the estimation process to see what can be done to better predict gaps like this. This would allow the staff to seek the appropriate funding needed for the project in the beginning instead of playing catch-up. Can the City look at purchasing materials closer to the time the estimates are done so the price will not fluctuate so much or can they get creative and look at pricing in several different options for building the trail at the time the approvals are done so they have flexibility? Not sure, but truly this is disappointing to hear.
I appreciate all your work on this to date and do look forward to it being completed.
Respectfully,
Karen Lare
161 Sea Cliff Way Del Mar
1 May 30 and 31, 2023 Item 01