CITY OF HIDDEN HILLS
REGULAR CITY COUNCIL MEETING
(IN-PERSON AND VIDEO CONFERENCE)
6165 Spring Valley Road
:
Monday, June 10, 2024
5:30 p.m.
MINUTES
CALL TO ORDER AND PLEDGE OF ALLEGIANCE
A regular meeting of the City Council of the City of Hidden Hills was duly held via teleconference and in person on Monday, June 10, 2024, at the hour of 5:30 p.m. Mayor Eniko Gold called the meeting to order and presided thereover.
ROLL CALL
Council: Mayor Eniko Gold
Mayor Pro Tem Larry G. Weber
Council Member Joe Loggia
Council Member Laura McCorkindale
Council Member Adam Wasserman
Staff: Interim City Manager Marcella Marlowe
Interim Assistant City Attorney Ryan Guiboa
City Clerk Deana L. Gonzalez
Accounting Specialist Theresa Hernandez
City Engineer Dirk Lovett
Administrative Analyst Aaron Williams
PUBLIC COMMENT
No Public Comment.
CITY COUNCIL COMMENTS
Mayor Gold made several comments during the meeting. She acknowledged the concerns raised about student safety at the little red bus stop in Hidden Hills and expressed support for the proposal to relocate it to a safer, less trafficked area. He encouraged collaboration with the school district to explore this idea further.
Additionally, Mayor Gold reflected on the success of the "Be Prepared for Safety" Multi-City Fair held at the Community Center in Calabasas. She expressed pride in the city's representation at the event and thanked the interim city manager and staff for their hard work.
City Council Minutes
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June 10, 2024
Lastly, she reminded everyone that Independence Day would soon be upon them, noting that City Hall and the building and safety department would be closed on July 4th, and no inspections would be conducted that day.
STAFF COMMENTS
Interim City Manager Marlowe made several important comments during the meeting. She addressed the concerns regarding student safety at the little red bus stop in Hidden Hills, expressing his support for relocating the stop to a safer location and committing to discussing this proposal with the school district. Dr.
Marlowe also spoke about the success of the recent "Be Prepared for Safety" Multi-City Fair, thanking everyone involved in its organization and execution, highlighting the city's professional representation. In addition, she noted the upcoming closure of the Long Valley entrance, assuring residents that the exit lanes would remain open while encouraging them to use alternative gates during the closure. Finally, Dr. Marlowe emphasized the city staff's ongoing efforts to improve safety and communication within the community.
PUBLIC SAFETY
A. Michael Grant, Public Safety and Emergency Services Manager Public Safety and Emergency Manager Mike Grant provided a report highlighting several key initiatives and updates. He expressed appreciation for the successful "Be Prepared for Safety" fair, where valuable connections were made with various emergency services personnel. Grant noted the importance of community involvement in safety initiatives and encouraged residents to participate in upcoming training and programs.
He emphasized the collaboration with the Los Angeles County Sheriff's Volunteer Arson Watch, which seeks to recruit Hidden Hills residents to assist in community safety efforts. He outlined the plans for home ignition zone assessments being offered by the Los Angeles Emergency Preparedness Foundation, which will help residents better protect their homes from potential fire hazards. Grant also reiterated Marlowe's commitment to monthly radio checks for the emergency operations management system, ensuring that the city remains prepared for any emergencies. Additionally, he discussed the forthcoming CERT kickoff meeting scheduled for July, encouraging both current and prospective members to engage in emergency preparedness training.
Deputy Christopher Jauregui (Jag), Los Angeles County Sheriff's Department Deputy Jauregui provided a report on public safety and law enforcement activities in the city. He noted that crime statistics were positive, indicating no significant incidents in the area, which is encouraging for community safety. He also highlighted the successful intervention involving youth causing disturbances, where the motor deputy issued citations for violations, aiming to reduce such behavior in the future. Additionally, Deputy Jauregui discussed ongoing efforts to maintain safety in the community, including patrols, community engagement initiatives, and any upcoming safety programs or events. He encouraged residents to continue reporting any concerns and to participate in community safety efforts.
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C. Chief Drew Smith, Los Angeles County Fire Department In April and May, the Los Angeles County Fire Department continued to show its commitment to the community through effective response to emergencies and proactive engagement with residents. Our partnership with local agencies, including the Sheriff's Department and the cities we serve, notably Hidden Hills, has never been stronger. Together, we are ensuring the safety and well-being of our community members. During this reporting period, we handled 19 medical calls. This figure reflects our ongoing dedication to swift and effective emergency medical services. Also, the department recorded 5 fire-related calls, comprising one in April and four in May. This low volume of fire calls is a positive indicator of community vigilance and safety practices. One aspect that particularly stands out is the number of "good intent" calls received. These calls are crucial as they signify that residents are observant and engaged with their surroundings. Good intent calls allow us to assess potential concerns, ensuring that we provide the necessary support and resources to address them. Encouraging our community to "see something, say something" is imperative, and it is gratifying to note that residents are responsive in this regard.
In conclusion, our call volume reflects the proactive measures taken by both the fire department and the community. We encourage all residents to continue being vigilant and to contact us whenever they suspect something may be amiss. Our department is here to serve and evaluate any concerns you may have, reinforcing the message that no call is too small when it comes to community safety.
The City Council commended Chief Drew on his presentation that he gave at the Safety Fair. It was outstanding.
CONSENT CALENDAR
A. Approval of the City Council Minutes for March 11, 2024, April 27, 2024, and May 22, 2024 B. Approval of the Register of Demands for June 10, 2024 Receive and File the Disbursement List for April 2024
D. Receive and File the Financial/Treasurer's Report for April 2024 E. Receive and File the Investment Statement for April 2024 F. Receive and File the City Engineering and Community Development Report for April 2024 G. Receive and File the Las Virgenes Malibu Council of Governments (LVMCOG) Report for May 21, 2024 H. Approval of Resolution No. 1028 to Approve a Project List for 2024-25 to Receive an Estimated $44,300 in SB1, Road Maintenance and Rehabilitation Act of 2017 Funding I. REMOVED FOR DISCUSSION
J. Approval of Resolution No. 1030 of the City Council of the City of Hidden Hills, approving a Five-Year Municipal Law Enforcement Services Agreement with the County of Los Angeles for Public Services Provided by the Los Angeles County Sheriff's Department and Authorizing the City Manager to Procure Services of the Los Angeles County Sheriff's Department Up to an Amount Authorized in the City's Operating and Capital Budget for the Period of July 1, 2024 Through June 30, 2029 K. Approval of an Amendment to the Janitorial Service Agreement with Suite Renovation L. REMOVED FOR DISCUSSION
M. Approval of a Traffic Control Reimbursement Agreement with the Hidden Hills Community Association (HHCA)
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N. Approval of Vendor Agreements for the 2024 Hidden Hills Fiesta - A Rental Connection, Bella Donna Special Events, Inc., and Christiansen Amusements/Southland Shows and Payment of Deposits Upon MOTION by Council Member Loggia, seconded by Council Member McCorkindale and unanimously carried on roll call vote, it was moved to approve items A, B, C, D, E, F, G, H, J, K, M, N of the Consent Calendar as submitted.
71. Approval of Resolution No. 1029 Calling the City's November 5, 2024, General Municipal Election, Requesting the County to Consolidate the City's General Municipal Election with the Statewide Election and Adopting Regulations for Candidates and Candidate Statements This item was pulled to highlight it, and the City Council feels that any time there is an election resolution or something of that nature, it should be listed as an item of business with a brief staff report.
Upon MOTION by Council Member Loggia, seconded by Council Member Wasserman and unanimously carried on roll call vote, it was moved to approve item 71 of the Consent Calendar. 7L. Adoption of Ordinance No. 391, Amending Section 1-8-1 Of Chapter 8 of Title 1 of the Hidden Hills Municipal Code, relating to the City Manager Powers and Duties, Removal Procedures, Compensation, and Bond Requirements Thereof and Finding the Action Exempt from CEOA - Second Reading
This item was pulled to be addressed at a future meeting.
NEW BUSINESS
A. Appointment of City Manager and Approval of Employment Agreement for City Manager Services Interim Assistant City Attorney Guiboa presented the following report:
This report addresses the important matter of appointing a new City Manager and approving the corresponding employment agreement for the role. In February, the City Council initiated a search for a new city manager by engaging the services of an executive recruiting firm. This comprehensive nationwide search yielded over 50 applications from qualified candidates. A Council Subcommittee worked diligently with the recruitment firm throughout this process, conducting a thorough screening and interview protocol. After careful consideration, we are pleased to announce that Claire Whitley has been selected for the position of City Manager. Ms. Whitley brings extensive experience to our city. Since 2015, she has served as the Assistant City Manager and Human Resources Director for the City of Ormond Beach, Florida. Prior to this role, she was employed by the State of Florida, where she worked as a staff attorney and HR consultant. Academically, Ms. Whitley holds a bachelor's degree from the University of Hawaii and a law degree from the Florida State University College of Law.
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The employment agreement presented contains several key provisions and has been updated from the previous version included in the agenda packet. For your review, the agreement is available on the dais and in the meeting room for the public. Key terms of the proposed employment agreement include: 1) a term of five years; 2) an annual base salary of $240,000; 3) a $500 monthly vehicle allowance; 4) a $100 monthly cell phone allowance; 5) a one-time relocation allowance of $10,000; and 6) a monthly retention payment of $1,500.
We anticipate Ms. Whitley's expected start date will occur next month.
Upon MOTION by Council Member McCorkindale, seconded by Council Member Loggia and unanimously carried on roll call vote, it was moved to approve the appointment of City Manager Claire Whitley and an Employment Agreement for City Manager Services
B. Discussion and Direction Regarding the Gann Limit
The report provided by Interim City Manager Marlowe addresses the current issue related to the Gann Limit that affects our city's financial capabilities. The Gann Limit establishes the maximum amount the city can retain in tax revenues, influenced by spending metrics, population growth, and the Consumer Price Index (CPI). The current status is that the city has exceeded the Gann Limit by approximately $35,000 for FY 23/24.
Budget forecasts indicate an anticipated overage of approximately $192,000 in the next fiscal year, suggesting that this is an ongoing issue rather than a one-time occurrence. The Gann Limit is designed to regulate government fiscal growth based on population and economic factors. It encompasses certain revenue types that are calculated to determine how much a city can legally collect. The city has three potential courses of action: Option 1: Make Up the Overage which this option is unfeasible, as future projections show expected increases in overage; Option 2: Refund the Excess Revenues - 50% of the excess would be remitted to the State Education Fund and remaining funds would need a mechanism to be refunded to taxpayers, reducing the city's available resources for services; or Option 3: Ballot Measure for Override - this would allow voters to permit the city to exceed the Gann Limit. A successful ballot measure would authorize the city to access and expend the previously limited funds for a period of four years, which may require future votes for continuation. Staff recommends Option 3 as this provides community members the opportunity to express their preferences regarding fiscal policies directly tied to their tax money. The ballot measure should be structured as an all-mail election for efficiency and cost-effectiveness. The Gann Limit issue presents a unique challenge for the city, requiring timely and appropriate action. Implementing the ballot measure strategy will enhance accountability and community involvement in financial decisions. The next steps are to determine if the council will proceed with the ballot measure option or consider the refund option. If proceeding with the ballot measure, further planning and specifics regarding the election logistics will be required.
Mayor Gold asked Interim City Manager Marlowe her option as to why she feels it is more favorable to separate the measure out from the November election. Mayor Gold thinks residents would want it as part of their election pamphlet.
In Dr. Marlowe's opinion, given the crowded nature of the upcoming November ballot, it may be beneficial to consider a separate special election to avoid confusion. Mayor Gold agreed.
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Mayor Pro Tem Weber asked if this the first year the city has officially encountered a Gann Limit issue, despite approaching the threshold in previous years? If the city were to retund the excess collected due to exceeding the Gann Limit, the amounts refunded to residents could vary significantly. For instance, some residents might receive a refund of just $1, while others could get as much as $1,000, depending on the overall distribution of property tax revenues and how refunds are calculated. And if this does go to the voters, what does it have to pass by? Assistant City Attorney Guiboa answered that it is a simple majority.
Council Member Loggia asked that as a point of clarification, does the Gann Limit apply to property tax only? Financial Consultant Jay Goldstone explains the different types of tax revenues, including property tax, vehicle license fees, property transfer tax, and interest income related to tax revenues. He notes that fees charged for services are not considered taxes if they only cover service costs. However, if a fee exceeds the cost of the service, it is classified as a tax. In this case, there are four categories of tax revenues totaling approximately $2.6 million in the budget, with about $1.7 million coming from property tax.
Council Member Loggia inquired about the rules concerning public communication related to a special election versus a general election. He seeks clarification on how the public is informed about the election and the implications of the assorted options presented. The emphasis is on understanding what information must be provided to ensure the electorate is well-informed about the election process and its potential outcomes.
In response, Interim City Manager Marlowe reiterates that the rules for public information regarding elections apply equally to both special and general elections. She emphasizes that the focus is on providing neutral, information without advocating for or against any outcomes. The city typically prepares this informational content, often involving the city attorney's office and potentially finance specialists for ballot measures.
Additionally, she notes that while community groups may form to conduct political campaigns regarding the measures, the city itself is not allowed to engage in such advocacy activities.
Mayor Gold posed a question to Mr. Goldstone about the calculation of refunds. She asks if the refunds would be based on property taxes or if they include other taxes, seeking clarity on how the refund amount for each resident is determined.
In response to Mayor Gold's question, Jay Goldstone explains that there is no fixed definition or approach for calculating the refunds; it falls to the discretion of the City Council. He mentions that the calculation could be based on a per capita basis or assessed valuation, particularly if linked to property taxes. Additionally, he notes that the refund would be applicable only to current residents, which raises the question of whether someone who moved in after the tax payment should be entitled to the refund, suggesting that it might only apply to the current property owner. Interim City Attorney Guiboa responded that he would need to confirm.
The City Council directed staff to research holding a special election well after the November election, in either the first or second quarter of next year and bring this item back to a future meeting.
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June 10, 2024
C. Adoption of Resolution No. 1031, Adopting a General Fund Reserve Policy and Transferring Funds Unappropriated as of June 30, 2024 to the Reserve Categories Set Forth in the General Fund Reserve Policy, Approving an Investment Policy for Fiscal Year 2024-25, Adopting the City's Budget, and Establishing the Appropriations Limit for the Fiscal Year Commencing July 1, 2024; and Adoption of Resolution No. 1032, Approving the City's Classification Plan and Payment Schedule
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIDDEN HILLS TRANSFERRING FUNDS UNAPPROPRIATED AS OF JUNE 30, 2024, TO THE RESERVE CATEGORIES SET FORTH IN THE GENERAL FUND RESERVE POLICY, APPROVING AN INVESTMENT POLICY FOR FISCAL YEAR 2024 25, ADOPTING THE CITY'S BUDGET AND ESTABLISHING THE APPROPRIATIONS LIMIT FOR THE FISCAL YEAR COMMENCING JULY 1, 2024
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF HIDDEN HILLS APPROVING THE CITY'S
CLASSIFICATION PLAN AND PAYMENT SCHEDULE
Interim City Manager, Marlowe, acknowledged the hard work of various individuals and committees involved in preparing the budget, specifically thanking the Budget and Finance Subcommittee, finance consultants Jay Goldstone and Mike Blazenski, and finance manager Theresa Hernandez for their contributions.
Dr. Marlowe outlines five key actions the council is being asked to undertake that evening:
Adoption of the Investment Policy: Revised by the city attorney's office and reviewed by the Investment Subcommittee.
2. Adoption of the Reserve Policy: Also revised and reviewed by the Budget Subcommittee.
Authorization of Fund Transfers: Authorizing the transfer of unappropriated funds at the end of the fiscal year to specific reserve categories.
4. Adoption of the Budget: Establishing the appropriations limit for fiscal years 2024 and 2025.
5. Adoption of the Hidden Hills Classification Plan: A separate resolution regarding the pay schedule for the year.
Dr. Marlowe discussed the operating budget, noting that most changes are mandated by contractual obligations or standard cost increases rather than discretionary spending. She emphasized the importance of maintaining transparency in accounting and mentioned that some budget changes will require support from at least three Council Members. She also addresses two notable items not included in the budget: the sale of an outdated city vehicle and funding related to a waste hauler consultant contract. Regarding the new city manager's contract, she suggests adjustments to account for changes in salary and allowances, recommending a transfer of funds from CalPERS retirement rather than the City Manager's salary. She concludes her report by inviting questions and expressing readiness to provide further details, highlighting that there is always more to discuss regarding the budget.
Council Member McCorkindale asked if staff consulted the Blue Book, so the city can determine the market value of its current vehicles and subtract the cost of the new vehicle from this value. This calculation enables City Council Minutes
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the city to input a realistic number into the budget that reflects both potential revenue and anticipated expenses.
In response, staff confirmed the Blue Book was used to obtain an accurate market valuation for vehicles. The city is currently projecting to receive approximately $6,000 from the sale of a hybrid vehicle. Moreover, it was noted that proceeds from the sale of the vehicle must be reinvested back into the AQMD Fund. This fund is designated specifically for purchasing fuel-efficient or hybrid vehicles, thereby aligning with the city's broader goal of sustainability. The reason there is not a number in the budget as of now is that the vehicles under consideration have a wide variety of price points, which could affect the overall budget and how funds are allocated, so staff will bring that back once a more definitive number is available for approval by the Council.
The conversation shifted to the city's increasing attorney fees, drawing attention to another significant budgetary consideration. The previously budgeted amount was based on a different city attorney firm that was charging below market rates. The new law firm's fees reflect a shift to more standard pricing, with an hourly rate rising from $190 to $325. This transition is anticipated to result in an increase of $85,000 in the budget for legal services, driven by not only the higher hourly rates but also by the increased number of service hours being utilized.
Mayor Pro Tem Weber asked what determines miscellaneous expense? Dr. Marlowe responded that in the recent budget subcommittee discussion, it was decided to allocate funds to be set aside for unexpected expenses. This amount serves as a contingency reserve for unforeseen occurrences that may arise throughout the fiscal year. Given that the Council only meets once a month, having this fund is essential. If an urgent need arises that falls within the City Manager's spending authority of $5,000, and there are no funds available in the budget, we would be unable to address that need without going back to the council for an appropriation. The funds are intended for situations we cannot foresee, so there is not a specific list of anticipated expenditures associated with this allocation. It acts as a safety net, ensuring that we have the flexibility to respond to emergencies. The Council has the discretion to adjust this amount as necessary based on our evolving needs.
Mayor Pro Tem Weber continued with his question, asking that last year the budgeted amount was spent and this year, the same amount is being budgeted this year. Should this amount be increased? Dr. Marlowe responded that initially, the amount set aside was $15,000, but we added another $30,000 to account for the expenses related to the recruitment of the new City Manager. Our expectation was that we might spend the entire $15,000 for additional needs; however, the amount has not been fully utilized. By keeping the total allocation at $45,000, we are ensuring that the new City Manager has sufficient flexibility to address any immediate needs or initiatives that may arise as they settle into their role.
Council Member Loggia asked that the need for a City Treasurer be explained.
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Dr. Marlowe stated that the need for a City Treasurer is mandated by our municipal code. This requirement exists to ensure the city has a good steward of the City's investments. Currently, the municipal code specifies that while the City Manager serves as the Finance Director, the role of City Treasurer is delineated separately.
At present, the city does not have a designated City Treasurer, and although the city has finance consultants, neither of them fulfills this specific role. This is an issue that needs to be resolved. Recently, discussions among the Investments Committee, including Council Member Loggia and Council Member Wasserman, suggested that the Council might want to pursue this position as a contracted service. To facilitate this, there is a placeholder amount in the budget for this purpose, but any procurement would need to be brought back to the Council for approval. This is not something the City Manager can unilaterally decide.
Mayor Gold announced they will now focus on the Council discussion about the budget. There are three major components we need to consider: revenue, operating expenses, and capital improvement projects. With the Council's consent, we will address each component one at a time, starting with revenue. It is encouraged for any Council Members to engage in further discussion or propose adjustments. Feel free to ask staff additional questions to help formulate your thoughts. Any changes will require the agreement of at least three Council Members to proceed.
As there was no discussion regarding the revenue section, the Council next addressed the expenses.
At this time, Interim City Manager Marlowe asked for consensus from the Council on the moving of the two items for the City Manager salary that she suggested in her staff report. The Council approved.
Council Member Loggia posed a question to Accounting Specialist Hernandez regarding the unfunded liability from CaPERS. "Theresa, what are you doing with the unfunded liability from CaPERS? Specifically, how do you calculate it? Why do you calculate it? Additionally, where do you allocate the funds? Is there a plan for ensuring that these liabilities are covered, or is there an expectation that the necessary funds will be available from the general fund in the future?" Also, Council Member Loggia noted that the city currently has $0 allocated for the unfunded liability in this year's budget and only $9,000 projected for the following year.
Ms. Hernandez elaborated on the city's annual evaluations received from CalPERS, noting that these evaluations typically arrive in July each year. Along with the evaluation, CaPERS provides an amortization schedule detailing the amount of unfunded liability the city needs to pay annually. The required payment fluctuates based on the actual valuation each year, helping to mitigate the previously experienced financial burden, which included payments of several hundred thousand dollars. In referring to past payments, Hernandez reminded the council that the last significant payment amounted to approximately $500,000, as the Council had chosen to pay the full amount to avoid accruing interest on the unfunded liability. However, for the current year, the city is scheduled to pay annual fees concurrently with the regular contributions.
Hernandez confirmed that, while last year reflected a $O allocation in the budget for this liability, the city now owes $8,900 based on the latest valuation. This ongoing attention to unfunded liabilities is crucial for the city's financial health and for managing future obligations effectively.
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Council Member Loggia commented on the amount in elections and legislation and inquired if the amount needs to be what is budgeted or can it be less. Council Member McCorkindale replied that it is always prudent to have a cushion for unexpected legislation.
Mayor Pro Tem Weber said he thought the amount reflected in staff training is too low and wants that number increased. He believes staff training is especially important, especially with such a small staff in a small city, and he believes it would broaden staff's knowledge to implement in their jobs.
Council Member McCorkindale shared that she appreciated the proposed increase for this year, but she has some serious reservations about the value of many seminars the Council has attended in the past. She is concerned that many of these events seem to function more as networking opportunities than substantive training. She had discussed this item with Interim City Manager Marlowe, and she proposed that moving forward, there should be a policy implemented requiring staff to submit a brief report after attending any paid conference or seminar. By having staff write up their experiences and insights, Council can better evaluate what has been beneficial for our city. This will help ensure informed decisions about future budget allocations for seminars are being made.
Mayor Gold voiced her agreement with Council Member McCorkindale's concerns regarding the allocation for staff training seminars. She further noted that Interim City Manager Marlowe stands firmly behind the proposed budget increase of $16,000, and given her insight, it is believed there is a good foundation to support this increase while also establishing a reporting policy as suggested by Council Member McCorkindale.
There were no questions or comments about Public Safety. The next item is Building and Safety.
Council Member Loggia raised concerns regarding the budget allocation for the general plan, specifically the $600,000 set aside for this initiative. He acknowledged the intention behind the funding but questioned whether it was the right time to move forward with such a significant investment, especially given the widely varying cost estimates ranging from half a million to two million dollars. He highlighted difficulties in reaching a consensus on which components of the general plan to prioritize. He suggested that it might be more prudent to delay the expenditure until the new City Manager is onboard, and it would be advantageous to allow the incoming manager to evaluate the city's current needs and objectives before committing to such a financial allocation. Council Member McCorkindale and Mayor Gold were in agreement, so that amount will be removed from the budget dropping it down to $100, 100.
Mayor Pro Tem Weber mentioned the possibility of removing the City Hall remodel project or moving it to a different category. After some discussion by the City Council, staff asked the Council to turn to Page 25 which lists the potential capital projects for next year.
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Interim City Manager Marlowe addressed the council's concerns by providing clarity on the budget for potential capital projects. He explained that the summary on page 25 includes a comprehensive list of all the capital projects proposed for the upcoming year. Since the council did not hold a goal-setting session this year, he included all potential projects, anticipating that the evening's discussions would facilitate the council's goal setting. She cautioned that simply looking at the transfers might be misleading, as this perspective focuses solely on projects funded by the general fund. She emphasized that this approach does not give a complete picture of the entire capital budget. To illustrate her point, she mentioned the City Council Chamber remodel, which is fully funded by the general fund with no grant assistance.
She proceeded to highlight specific figures, such as the funding allocated for undergrounding projects. While the budget might show only a $67,000 allocation from the general fund on one page, she pointed out that additional funding from grants, including a recent award from Cal OES, would significantly bolster the resources available for these projects. She concluded by stressing the importance of having a holistic view of the budget. By examining the complete financial landscape, the Council would better understand the potential projects and the various funding sources available, enabling them to make informed decisions on how to allocate resources effectively.
Council Member Weber asked how the amount $67,000 came about? To which, Accounting Specialist Hernandez provided an update on the funding status for the upcoming fiscal year related to the undergrounding projects at Jed Smith and Little Hollow. She explained that the estimated cost for these two projects totals approximately $2.293 million. The city has already secured $850,000 in grant funding from Santa Monica, which was awarded two years ago under the SB 85 program and is specifically allocated for the Jed Smith project. Additionally, she noted that a new grant of $1.383 million has just been awarded, although the application process is still ongoing. She clarified that this new funding would be distributed between the two projects, with around $650,000 designated for Jed Smith and approximately $733,000 for Little Hollow. Ms.
Hernandez highlighted that despite the grants, the city still faces a shortfall of about $67,000, which would need to be sourced from the general fund to fully finance the projects. She emphasized the necessity of moving forward with these initiatives, reiterating that failing to do so might result in losing the available grant funding, which is critical for advancing the city's infrastructure goals.
Council Member McCorkindale addressed the future of City Hall, recalling discussions from 2019 when a full rebuild was estimated at $4 million. The council opted for a $2 million remodeling instead, a decision she now views as unfortunate. She emphasized the importance of formally maintaining the goal of updating City Hall and credited new council members for their fresh perspectives on necessary improvements. She compared City Hall to the Homeowner Association's newer building, which is set for a $3 million remodel, and stressed the need for City Hall to be a safe and appealing space for public engagement. Additionally, she sought clarification on the $1 million budget allocation, questioning whether it was strictly for the chambers or would also cover other needs within the building, highlighting a previously discussed phased approach to addressing staff-related issues.
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Interim City Manager Marlowe stated that the $1 million budget for the City Hall remodel is currently a placeholder, as updated designs and quotes are still pending. Discussions with Camille indicated the remodel could cost between $1 million and $2 million, but the exact figure remains unclear. Should the Council choose to proceed with the project, approval will be required since the amount exceeds the city manager's spending authority. The remodel aims to address not just the council chambers but also safety and deferred maintenance issues throughout the building, potentially including the roof. There are ADA compliance concerns to resolve as well. Additionally, there is a proposed outdoor landscaping project that ties into the remodel, and it would be more logical to pursue both simultaneously. However, the outdoor project has significant grant funding attached, which may impact timing and decision-making.
Council Member McCorkindale expressed concern that the $1 million budget is being overanalyzed since it is merely a placeholder. She suggested that if the Council wishes to remove the City Hall update as a goal, it should be done formally during the next goal-setting session. She conveyed a willingness to support removing it but emphasized that the building's condition cannot continue to deteriorate year after year, especially as costs continue to rise.
Mayor Pro Tem Weber suggested that instead of the $1,000,000 in City Chamber remodel, that it be merged with City Hall Improvements to make the total of that account $1,080,000, and it will give more flexibility for the usage.
As the budget discussion ended, the mayor asked Interim City Manager to recap the adjustments and provide a motion.
The proposed adjustments to the budget include several key changes: 1) transitioning two salary items from CalPERS retirement contributions to auto allowance and cell phone allowance; 2) updating the organizational chart to reflect the city manager's name and title while removing the previous manager's details; 3) eliminating the $600,000 item for the general plan update; and 4) moving the $1 million allocated for the Council Chamber remodel to a broader category labeled "City Hall improvements and upgrades." These changes would take effect if the motion to adopt Resolution 1031 is approved. This resolution includes approving the investment and reserve policies, amending the city budget for fiscal year 2024-25, transferring unappropriated funds as of June 30, 2024, to appropriate reserve accounts, and establishing the appropriations limit. Additionally, Resolution 1032, which approves the city's classification plan and pay schedule, would also be adopted. A motion was then requested to approve these recommendations, including the amended budget.
Upon MOTION by Council Member Wasserman, seconded by Council Member Loggia and unanimously carried on roll call vote, it was resolved to approve the recommendations and the amended budget as stated by Interim City Manager Marlowe.
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10. ADJOURNMENT
There being no further business to come before the Council, the meeting was adjourned.
Eniko Gold, Mayor