_
AGENDA
REGULAR MEETING OF THE
CITY OF KING CITY COUNCIL
AND
Sitting as SUCCESSOR AGENCY OF
THE RDA FOR THE CITY OF KING
TUESDAY APRIL 26, 2022
6:00 P.M.
CITY HALL
212 S. VANDERHURST AVENUE
KING CITY, CALIFORNIA 93930
The City Council meeting will be conducted in hybrid in-person/virtual format.
To join the meeting virtually, please use the link below to join the Zoom meeting:
https://bit.ly/3e0zvaR
Meeting ID: 881 5287 9536
Or by telephone: 1-669-900-9128
Passcode: 052933
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1. CALL TO ORDER
2. ROLL CALL: Council Members Darlene Acosta, Robert Cullen, Carlos DeLeon, Mayor Pro Tem Carlos Victoria, and Mayor Mike LeBarre
3. FLAG SALUTE
4. CLOSED SESSION ANNOUNCEMENTS
5. SPECIAL PRESENTATIONS
A. Swearing in of New Officers by Chief Boyd
B. May is Mental Health Month Proclamation presented to Dana Edgull
6. PUBLIC COMMENT
Any member of the public may address the Council for a period not to exceed three minutes’ total on any item of interest within the jurisdiction of this Council that is not on the agenda. The Council will listen to all communications; however, in compliance with the Brown Act, the Council cannot act on items not on the agenda. Comments should be directed to the Council as a whole and not to any individual Council Member. Slanderous, profane or personal remarks against any Council Member, staff member or member of the audience is not permitted.
7. COUNCIL COMMUNICATIONS & COMMITTEE REPORTS
Individual Council Members may comment on Council business, his or her Council activities, City operations, projects or other items of community interest. Council Members may also request staff to report back at a subsequent meeting on any matter or take action to direct staff to prepare a staff report for a future agenda.
8. STAFF COMMUNICATIONS
Comments presented by the City Manager, City Attorney or other staff on City business and/or announcements.
9. CONSENT AGENDA
The following items listed below are scheduled for consideration as a group. The recommendations for each item are noted. Members of the audience may speak on any item(s) listed on the Consent Agenda. Any Council Member, the City Manager, or the City Attorney may request that an item be withdrawn from the Consent Agenda to allow for full discussion.
The Council may approve the remainder of the Consent Agenda on one motion. Items withdrawn from the Consent Agenda may be considered by separate motions at the conclusion of the discussion of each item.
A. Consideration: Meeting Minutes of April 12, 2022, Council Meeting Recommendation: approve and file.
B. Consideration: City of King Check Register April 1, through April 15, 2022 Recommendation: receive and file.
C. Consideration: Successor Agency Check Register April 1, through April 15, 2022
Recommendation: receive and file.
D. Consideration: Meeting Minutes of April 18, 2022, Special Council Meeting Recommendation: approve and file.
E. Consideration: Award of Bid for the King City Police Station Remodel Project Including Adopting Finding of a Categorical Exemption, Pursuant to Section 15301 of the CEQA Guidelines
Recommendation: 1) award the bid alternate 1 for the King City Police Station Remodel Project as proposed by low bidder, Two Team Construction Inc., in the amount of $69,000; 2) authorize the City Manager to approve change orders up to 10%; and 3) adopt a finding of a Categorical Exemption, pursuant to Section 15301 of the CEQA Guidelines.
10. PUBLIC HEARINGS
A. Consideration: Close Out of City of King 20-Cdbg-Cv-1-00018 Community Development Block Grant Agreement with The State of California Recommendation: 1) review the past use of funds and program performance for the City of King Community Development Block Grant (CDBG) contract 20- CDBG-CV-1-00018; 2) open the public hearing, receive public input regarding the outcome and accomplishments of the funding received under the contract, and close the public hearing; and 3) and direct staff to submit the required close out documents per the program requirements.
11. REGULAR BUSINESS
A. Consideration: Project Expenditure Needs and Revenue Strategies Recommendation: direct staff to prepare an Ordinance for Council consideration to be placed on the November 8, 2022, ballot to increase the local sales tax by .5%.
12. CITY COUNCIL CLOSED SESSION
Announcement(s) of any reportable action(s) taken in Closed Session will be made in open session and repeated at the beginning of the next Regular City Council meeting as this portion of the meeting is not recorded.
A. Conference with Labor Negotiators
Pursuant to Government Code Section §54957
Agency Representative: Steven Adams
Employee Organization: KCCEA
13. ADJOURNMENT
The City of King is an equal opportunity provider and employer. 5(B)
Monthly Schedule, April 2022
Mike LeBarre, Mayor, King City California
MONTHLY MEETINGS:
4-1 Monterey County Water Resource Agency (MCWRA),
Personal and Administration committee, Zoom
4-1 Monterey County Water Resource Agency (MCWRA),
Finance committee, Zoom
4-1 Monterey County Mayors Association (MCMA), Zoom
4-1 CA Mayors Association, Zoom
4-1 Special Citizens Bond Oversight Committee (CBOC), Zoom 4-4 California Council of Governments (CalCOG) Legislative Committee, Zoom
4-4 Transportation Agency of Monterey County (TAMC), Rail Policy Committee, Chair, Cancelled
4-6 Transportation Agency of Monterey County (TAMC),
Executive Committee, Zoom
4-6 Transportation Agency of Monterey County (TAMC), Bicycle and Pedestrian Facilities Committee, Zoom
4-8 House America/HUD, Zoom
4-11 Monterey-Salinas Transit (MST) Board of Directors, Zoom 4-12 King City Council, Council Chambers
4-18 Monterey County Water Resource Agency (MCWRA),
Board of Directors, Zoom
4-18 Special King City Council, Council Chambers
4-20 Monterey Bay Air Resource District (MBARD) Board of Directors, Zoom
4-25 Salinas Valley Mayors and Managers (SVMM), Soledad 4-26 King City Council, Council Chambers
4-27 Transportation Agency of Monterey County (TAMC), Board of Directors, 1st Vice Chair, Zoom
4-27 Citizens Bond Oversight Committee (CBOC), Zoom
4-27 Leadership Council/Continuum of Care, Zoom
4-28 Monterey County Convention & Visitors Bureau (MCCVB), Advisor, Zoom
4-29 California Council of Governments (CalCOG) Board of Directors, Zoom
4-29 House America/HUD, Zoom
LOCAL-STATE-FEDERAL BRIEFINGS:
4-6 District 3 Mayors/Supervisor COVID-19 Briefing, Zoom 4-7 Whitehouse Briefing, Zoom
4-7 Cal OES Briefing, Phone
4-14 Whitehouse Briefing, Zoom
4-14 Cal OES Briefing, Phone
4-21 Whitehouse Briefing, Zoom
4-21 Cal OES Briefing, Phone
4-28 Whitehouse Briefing, Zoom
4-28 Cal OES Briefing, Phone
ADDITIONAL MEETINGS/EVENTS
4-1 Youth Violence Conference, Soledad
4-1 Rancho Cielo Casino Night Fundraiser, King City
4-5 Prop 47 teering Committee, Zoom
4-5 APTA Transit Board Members BOARD Talk, Zoom
4-6 Radio Interview, Phone
4-13 South County ITN Steering Committee, Zoom
4-13 Assemblyman Rivas Downtown Plaza/City Tour, King City 4-27 Radio Interview, Phone
4-27 Fort Hunter Liggett Celebration, Fort Hunter Liggett 4-28 CalVIP Diversion Program Coordinating and Advisory Council, Zoom
7(A)
City Council Meeting
April 12, 2022
1.__CALL TO ORDER:
Regular Meeting called to order at 6:00pm by Mayor LeBarre.
2.__FLAG SALUTE:
The flag salute was led by Mayor LeBarre.
3.__ROLL CALL:
City Council: Mike LeBarre, Council member Darlene Acosta, Rob Cullen, Carlos DeLeon.
Mayor Pro Tem Carlos Victoria is absent.
City Staff: City Manager Steven Adams (by teleconference); City Attorney Roy Santos; Executive Admin. Asst./Deputy City Clerk, Erica Sonne.
4. CLOSED SESSION ANNOUNCEMENTS:
None
5.__PRESENTATIONS:
None
6. PUBLIC COMMUNICATIONS:
Liz Hall, Waste Management wanted to take the opportunity to introduce herself. She invited everyone to join her on April 23, 2022, 8a.m. until dumpsters are full at 625 Division St. for cleanup day as Waste Management will have a space where items can be disposed of.
7. COUNCIL COMMUNICATIONS:
Council Member Cullen remined of April 23rd and mentioned that King City in Bloom would be doing a cleanup day around town. The Salinas Valley Fair kick off dinner is April 23rd in person and the fair is May 12-15.
Council Member Acosta stated she appreciates the new chairs.
Council Member DeLeon stated nothing to report.
Mayor LeBarre had nothing to report tonight.
8. CITY STAFF REPORTS AND COMMENTS:
City Manager Steven Adams stated nothing to report tonight.
City Attorney Roy Santos stated nothing from him tonight.
9. CONSENT AGENDA
A. Consideration: Meeting Minutes of March 22, 2022, Council Meeting B. Consideration: City of King Check Register March 16, through March 31, 2022 C. Consideration: Resolution in Support of the County of Monterey Regional Housing Trust Fund 9(A)
(RHTF) Program Application
D. Consideration: Scope of Work for Airport Improvement Program FY 2022 Federal Aviation Administration Grant Application
E. Consideration: King City Chamber of Commerce & Agriculture City-Wide Yard Sale and Sidewalk Sale
Action: Motion to approve consent agenda items A-I by Cullen and seconded by DeLeon.
AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon
NOES: Council Members:
ABSENT: Council Members: Victoria
ABSTAIN: Council Members:
10. PUBLIC HEARINGS:
A. Consideration: An Urgency Ordinance Adopting an Equipment Use Policy Per Assembly Bill 481 Captain Hunt introduced this item.
Mayor LeBarre read the Ordinance by Title only into the Record.
Mayor LeBarre opened the public hearing, hearing and seeing no one come forward, Mayor LeBarre closed the public hearing.
Action: Motion to adopt an urgency ordinance establishing a military equipment use policy to take effect immediately upon adoption by Cullen and seconded by Acosta.
AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon
NOES: Council Members:
ABSENT: Council Members: Victoria
ABSTAIN: Council Members:
11. REGULAR BUSINESS:
A. Consideration: Acceptance of the City and CDA Successor Agency’s Audited Financial Statements for the Fiscal Year 2020-2021
Finance Director Howard introduced this item.
Council would like Finance Director Howard to do a presentation on pension liability at a future meeting.
Action: Motion City Council and the Board of Directors of the King City CDA Successor Agency accept the City and CDA Successor Agency’s Audited Financial Statements for Fiscal Year Ended June 30, 2021 by DeLeon and seconded by Acosta.
AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon
NOES: Council Members:
ABSENT: Council Members: Victoria
ABSTAIN: Council Members:
B. Consideration: Memorandum of Understanding to Strengthen Relations Between Military Installations and Local Governments
City Manager Steve Adams introduced this item.
Mayor LeBarre further introduced this item.
Action: Motion to 1) approve and authorize the Mayor to execute a Memorandum of Understanding between the City of King, City of Paso Robles, Fort Hunter Liggett, Camp Roberts, and Camp San Luis Obispo to strengthen relations between military installations and local governments; and 2) appoint Policy Committee member Mayor LeBarre and alternate Council member Cullen, by Cullen and seconded by DeLeon.
AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon
NOES: Council Members:
ABSENT: Council Members: Victoria
ABSTAIN: Council Members:
Council member Cullen recused himself before the closed session due to a conflict and left the building.
12. CITY COUNCIL CLOSED SESSION
A. Conference with Legal Counsel – Liability Claims (Pursuant to Government Code Section 54956.95) Consideration of claim no. 2022-05, Claimant Ernesto Hernandez; claims regarding a fall at City Park in King City, CA. on 11/10/21.
ADJOURNMENT:
Mayor LeBarre adjourned the meeting at 6:40p.m. to closed session reading the closed session title into the record. Mayor LeBarre opened the meeting in regular session and Attorney Roy Santos stated that council voted to deny claim 2022-05. Mayor LeBarre adjourned the meeting at 6:55 on a motion by Acosta and second by DeLeon. Motion carried 3-0.
Approved Signatures:
Mayor, Michael LeBarre City Clerk, Steven Adams
City of King City of King
Item No. 9(B)
REPORT TO THE CITY COUNCIL
DATE: APRIL 26, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE HOWARD, FINANCE DIRECTOR
RE: CONSIDERATION OF CITY OF KING CHECK REGISTER APRIL
1 THROUGH APRIL 15, 2022
RECOMMENDATION:
It is recommended City Council receive and file.
BACKGROUND:
At least once a month, the City Treasurer shall submit to the City Council, a copy of the invoices paid for the previous month.
DISCUSSION:
The purpose of this item is to provide the Council an opportunity to review and monitor ongoing expenditures. These documents are attached.
COST ANALYSIS:
There is no fiscal impact as a result of this action.
ENVIRONMENTAL REVIEW:
No Environmental Review required for this item.
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Receive and file the report; or
2. Provide other direction to staff regarding requests for additional information.
Item No. 9(C)
REPORT TO THE SUCCESSOR AGENCY TO THE FORMER KING CITY CDA DATE: APRIL 26, 2022
TO: HONORABLE CHAIR AND MEMBERS OF THE BOARD
FROM: MIKE HOWARD, FINANCE DIRECTOR
RE: CONSIDERATION OF SUCCESSOR AGENCY CHECK
REGISTER FOR APRIL 1 THROUGH APRIL 15, 2022
RECOMMENDATION:
It is recommended the City Council acting as the Successor Agency Board receive and file.
BACKGROUND:
At least once a month, the City Treasurer shall submit to the Successor Agency Board, a copy of the invoices paid for the previous month.
DISCUSSION:
The purpose of this item is to provide the Council an opportunity to review and monitor ongoing expenditures. These documents are attached.
COST ANALYSIS:
There is no fiscal impact as a result of this action.
ENVIRONMENTAL REVIEW:
No Environmental Review required for this item.
ALTERNATIVES:
The following alternatives are provided for Council consideration:
1. Receive and file the report; or
2. Provide other direction to staff regarding requests for additional information.
City Council Special Meeting
April 18, 2022
1.__CALL TO ORDER:
Special Meeting called to order at 6:00pm by Mayor LeBarre.
2.__ROLL CALL:
City Council: Mike LeBarre, Council member Darlene Acosta, Rob Cullen, Mayor Pro Tem Carlos Victoria.
Council member Carlos DeLeon is absent.
City Staff: City Manager Steven Adams; Assistant City Attorney Shannon Chaffin (by video conference); Planner Maricruz Aguilar; Executive Admin. Asst./Deputy City Clerk, Erica Sonne.
3.__FLAG SALUTE:
The flag salute was led by Mayor LeBarre.
4. PUBLIC COMMUNICATIONS:
None
5. PUBLIC HEARINGS:
A. Consideration of an appeal of the King City Planning Commission’s adoption of a Class 32 Exemption (Infill Development Projects) under the California Environmental Quality Act and approval of Conditional Use Permit Case No. 210-091, Architectural Review Permit Case No. P21-000-005, Landscaping Permit Case No. L21-000-001, and Sign Permit Case No. SN2-100-001 for a Grocery Outlet project at 1023 Broadway Street.
Disclosures from the Mayor and City Council were presented. Mayor LeBarre received communications and or parties on this matter which are in the agenda packet and have been provided to the public and are here in the chambers for review. Mayor LeBarre will hear and consider the appeal in a fair and acceptable matter and base my decision on the evidence only in record.
Council members stated that all the correspondence went to the full council and is the same as what has been stated by the Mayor.
Mayor LeBarre went over the procedure of the appeal.
Community Development Director Doreen Liberto further introduced this item with a PowerPoint presentation. Planner Aguilar-Navarro further introduced this item with more of the PowerPoint.
Mayor LeBarre opened the public hearing
Attorney James Moose spoke on behalf of the applicant.
UFCW 5, Efrain Aguilera (virtually) stated that he would just use the letter he submitted Saturday to be presented to council as his presentation for tonight.
9(D)
Hector Sanchez owner of a Grocery Outlet and his partner spoke on all the benefits of being an owner of a Grocery Outlet and what it can do for family, the community as far as jobs, healthy food, participating with non-profits, Churches, schools and community.
Chris manager of a Grocery Outlet in Watsonville spoke in favor of opening the Grocery Outlet in King City and the benefits that Grocery Outlet will bring to King City such as jobs, developing skills for young people, and they donate lots of food to the community. He is hoping to own a Grocery Outlet one day.
Veronica Vargas, Latino Caucus for the League of California Cities. She is here asking to reinstate their support. They sent a letter of support to the planning commission. They like to support people who support their people. They like to stand behind good people that do-good work. They would like to ask the City Council to reinstate the Planning Commission approval and deny the appellant’s appeal. They can not partner up with a better company. They are here supporting them.
Grocery Outlet owner in Porterville and his wife they support non-profit organizations high school and elementary school programs with internships. There is no limit on how they support the community. They are flexible with college students so they can work and still go to school. They provide healthy food and snacks for the children.
Sharon Hornlien, Local Loaves and Fishes, what they have to provide families is not enough for a week and it is very important to have food at a discounted price for families.
Garland owner of a Grocery Outlet in Newark, she wanted to speak in Spanish for the Spanish speakers.
They help single mothers and single fathers be able to take their children to school and come back to work. She doesn’t know any other big box store that helps their workers like Grocery Outlet. She thanked the Council for giving the opportunity to have Grocery Outlet in King City.
Jamie, (virtually) community member and member of chamber of commerce, she feels that the store will be a great boom for our town. She feels that Safeway and Rite-aid are so expensive. We are paying the same prices as Monterey. She feels that every argument the appellant has put forward as been addressed by staff. In other experiences of hers with Grocery Outlet has been positive and they are very giving. She hopes that the Council deny the appeal.
Efrain Aguilera, (virtually) community member, stated that Grocery Outlet is a national discount grocery chain that does not provide employees with the dignity of livable wages, affordable medical benefits, and does not live up to industry standards. They will make it hard for businesses that provide good wages and benefits in our community, it is cheap labor and will also likely result in loss of better paying positions for community members in our town. He reminded that we had a Grocery Outlet several years back, if they are so great why did they leave us.
Mayor LeBarre hearing and seeing no one else come forward, closed the public hearing.
Applicant had no rebuttal.
Council member Cullen thanked community that sent comments and spoke tonight. He asked for timeline for COA 63, the 18%.
City Engineer Octavio Hurtado stated that the timeline is basically when it is needed. There will be an independent cost estimate however at this time it is not needed. The City will be looking at the corridor between Mildred to Franciscan Way to see what features can be done.
Council member Cullen wanted to know if the owner of Grocery Outlet is here.
Terry Johnson, Best Development Group stated that they are the owner of the land and would be the landlord.
Action: Motion to adopt Resolution No. 2022-4868, attached as Exhibit 6, denying the appeal of, and affirming the decision of, the Planning Commission’s approval of Conditional Use Permit Case No. 210- 091, Architectural Review Permit Case No. AR – P21-000-005, Landscaping Permit Case No. LPR L21-000- 001, and Sign Design Review Permit Case No. SN2-100-001 for Grocery Outlet project at 1023 S. Broadway street, and approving a Class 32 exemption (in-fill development projects) under the California Environmental Quality Act (“CEQA”), subject to the Conditions of Approval (“COA”), attached as Exhibit A to the Resolution as recommended by staff with staff modifications, adding condition 63 and others by Victoria and seconded by Cullen.
AYES: Council Members: LeBarre, Acosta, Cullen, and Victoria NOES: Council Members:
ABSENT: Council Members: DeLeon
ABSTAIN: Council Members:
6. CITY COUNCIL CLOSED SESSION
A. Conference with Legal Counsel – Liability Claims (Pursuant to Government Code Section 54956.95) Consideration of claim no. 2022-04, Claimant Marcela Vasquez-Garcia; claims regarding a traffic collision on the intersection of N. Vanderhurst Ave. and Ellis St. in King City, CA. on 2/09/22 resulting in alleged damages or injury.
ADJOURNMENT:
Mayor LeBarre adjourned the meeting at 7:07p.m. to closed session. Mayor LeBarre called the meeting back to open session reporting that there was no reportable action. Mayor LeBarre adjourned the meeting at 7:17p.m. on a motion by Cullen and second by Acosta. Motion carried 4-0.
Approved Signatures:
Mayor, Michael LeBarre City Clerk, Steven Adams
City of King City of King
Item No. 9(E)
STAFF REPORT
DATE: MAY 10, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: OCTAVIO HURTADO, CITY ENGINEER
RE: CONSIDERATION OF AWARD OF BID FOR THE KING CITY
POLICE STATION REMODEL PROJECT INCLUDING
ADOPTING FINDING OF A CATEGORICAL EXEMPTION,
PURSUANT TO SECTION 15301 OF THE CEQA GUIDELINES
RECOMMENDATION:
It is recommended City Council: 1) award the bid alternate 1 for the King City Police Station Remodel Project as proposed by low bidder, Two Team Construction Inc., in the amount of $69,000; 2) authorize the City Manager to approve change orders up to 10%; and 3) adopt a finding of a Categorical Exemption, pursuant to Section 15301 of the CEQA Guidelines.
BACKGROUND:
The Police and Public Works Departments have coordinated in designing proposed improvements to the lobby area of the Police Station (Phase 1) and the remodeling of the locker room and restrooms (bid alternate 1). The project is designed to improve safety, add meeting space more easily accessible to the public, improve ADA compliance, and increase storage space.
Bids were solicited for the project. The base bid consisted of making improvements to the lobby windows and existing walls, adding new bullet proof materials, installing new cabinets in the office area, air duct work to split return air at lobby and conference room, revising existing lighting, and installing new interior walls, doors and flooring at front office and lobby. Bid alternate 1 consists of remodeling the locker room and restrooms. Work includes removing nonbearing walls and restroom improvements, including fixtures, doors and flooring.
The base bid was awarded on March 10, 2020 and the work will be completed in May, 2022.
CITY COUNCIL
CONSIDERATION OF AWARD OF BID ALTERNATE 1 FOR THE KING CITY
POLICE STATION REMODEL PROJECT INCLUDING ADOPTING FINDING OF A CATEGORICAL EXEMPTION, PURSUANT TO SECTION 15301 OF THE
CEQA GUIDELINES
APRIL 26, 2022
PAGE 2 OF 3
DISCUSSION:
The City received the following bids:
Contractor Bid Alt 1 Total
Two Team Construction $68,000 $69,000 $137,000
Per the specifications, the basis of award is the lowest responsive responsible bid for the base bid plus bid alternate 1. Although only one bid was received, the project came in within budget and was submitted by a local contractor who has previous bid and work experience on City projects.
Available funding for this project was originally allocated for the lobby improvements only (base bid). Funding has become available to complete bid alternate 1 which was not recommended at the time the base bid was awarded on March 10, 2020. The Police Department is pleased with the workmanship and quality of construction and would like to proceed with the remainder of the project.
COST ANALYSIS:
Funds have been allocated for the project from Supplemental Law Enforcement Fund (SEESF/COPS Grant Contract) in the amount of ($70,000) in FY 2021-22 budget and the City’s Civic Center Capital Outlay Improvement Fund ($9,000).
The total proposed appropriation with construction management and contingencies is $79,000, which is within the amount allocated. Therefore, there will have no impact on the General Fund.
ENVIRONMENTAL REVIEW:
Staff has performed a preliminary environmental assessment of this project and has determined that if it falls within the Categorical Exemption set forth in Section 15301 of the CEQA guidelines because the contract is for the maintenance and repair of existing streets, which will not result in the expansion of capacity of these streets. Furthermore, staff has determined that none of the exceptions to Categorical Exemptions set forth in the CEQA Guidelines, section 15300.2 apply to this project.
Item No. 10 (A)
REPORT TO THE CITY COUNCIL
DATE: APRIL 26, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF CLOSE OUT OF CITY OF KING 20-CDBGCV-1-00018 COMMUNITY DEVELOPMENT BLOCK GRANT
AGREEMENT WITH THE STATE OF CALIFORNIA
RECOMMENDATION:
It is recommended the City Council: 1) review the past use of funds and program performance for the City of King Community Development Block Grant (CDBG) contract 20-CDBG-CV-1-00018; 2) open the public hearing, receive public input regarding the outcome and accomplishments of the funding received under the contract, and close the public hearing; and 3) and direct staff to submit the required close out documents per the program requirements.
BACKGROUND:
The City of King was awarded Community Development Block Grant funds from the Department of Housing and Community Development through the American Reinvestment and Recovery Act under contract number 20-CDBG-CV-1-00018. At the August 11, 2020 meeting, the City Council approved using these funds to provide subsistence payment grants.
Per the requirements of the CDBG contract, the City is required to hold a public hearing to review the past use of funds and program performance for the City of King CDBG contract 20-CDBG-CV-1-00018. This agreement with the State of California Department of Housing and Community Development also requires the City to solicit citizen input regarding the outcome and accomplishments of the funding received under this contract.
CITY COUNCIL
CONSIDERATION OF CLOSE OUT OF CITY OF KING 20-CDBG-CV-1-00018
COMMUNITY DEVELOPMENT BLOCK GRANT AGREEMENT WITH THE
STATE OF CALIFORNIA
APRIL 26, 2022
PAGE 2 OF 3
DISCUSSION:
Under the program, qualified City residents that were eligible for the COVID-19 Relief Grant Program (Program) were provided assistance with a grant up to $5,000 to assist with payment of their rent and utilities for up to 3 months. The City conducted outreach, posted flyers, provide outreach on social media, provided announcements through the faith community, and conducted a direct mail campaign. Individuals completed the pre-qualification form and 36 individuals were found eligible. As a result, the City was able to award grants to 36 households.
Two program documents are attached. The closeout certification form is used to detail that the agreed upon actions of the grant were fully executed and to catalog any equipment that may have been accrued. It also serves to show that the City will continue to follow the reporting and responding requirements even though the money has all been spent. The Disencumber letter is used to report any money that has not been spent and would need to be returned. This does not apply to the City of King for this grant, which is why the amount is listed as $0.
COST ANALYSIS:
There was no direct cost impact to the City for this program. However, existing City staff were reassigned responsibilities on a temporary basis to implement the program. The following is a summary of the expenditures that occurred with the funding received:
The grant funding under this contract was $83,212.00 described as follows:
Activity Grant Award Expended
General Administration $14,146.00 $14,146.00
Subsistence Program $69,066.00 $69,066.00
Total $83,212.00 $83,212.00
ENVIRONMENTAL REVIEW:
The close out of the grant is not considered a “project” for the purposes of the California Environmental Quality Act (CEQA). Therefore, it will not have the potential for resulting in either a direct physical change to the environment or a reasonably foreseeable indirect physical change in the environment. No further action is required under CEQA for City Council action.
Closeout Certification Form
State of California, Dept. of Housing & Community Development Attn: CDBG Program , Sandra Veirs, CDBG Representative
Department of Housing and Community Development
2020 West El Camino Avenue
Sacramento, CA 95833
RE: CLOSEOUT CERTIFICATION of CDBG Grant No. 20-CDBG-CV1-00018 Dear Ms. Veirs:
It is hereby certified that all activities undertaken by the Grantee with funds provided under the above grant agreement have, to the best of my knowledge, been carried out in accordance with the grant agreement; that proper provision has been made by the Grantee for the payment of all costs and claims; that the State of California is under no obligation to make further payment to the Grantee under the grant agreement; and that every statement and amounts set forth in the final CDBG Funding Request and Activity Report is, to the best of my knowledge, true and correct.
Any property acquired in whole or in part with CDBG funds or CDBG Program Income shall be accounted for in accordance with the provisions of Section 7118 and 7104 of the State CDBG regulations pertaining to property management and program income. Please list any property acquired in whole or in part with grant funds or program income expended for the grant or, if applicable, state “none” acquired. Please see Chapter 19, Property Management, in the Grants Management Manual for more detailed instructions.
Note: Future disposition of this property shall be carried out in accordance with Section 7118 of the State CDBG Regulations. Please see CFR 24 Sec. 570.505 Use of real property for instructions.
1. NONE 4.
2. 5.
3. 6.
The Grantee shall continue to comply with the State CDBG program income reporting requirements.
All costs incurred subsequent to the most recent annual audit period will be audited at the time the Grantee’s next annual audit is conducted in accordance with 2 CFR Part 200. The Grantee will resolve any audit findings relating to both the program and financial aspects of the grant. In the event there are any costs which are disallowed by this audit or any subsequent audits which cover CDBG expenditures, and which are sustained by the Department of Housing and Community Development, the amount of such costs shall be returned to HCD.
Date: Typed Name and Title of Authorized Grantee
Representative:
Signature of Authorized Grantee
Representative:
3/15/2022 Name: Steve Adams
Title: City Manager
EXHIBIT 1
212 S. V A N D E R H U R S T A V E N U E ● K I N G C I T Y , C A 9 3 9 3 0 P H O N E : ( 8 3 1 ) 3 8 5 - 3 2 8 1 ● F AX : ( 8 3 1 ) 385 - 6 8 8 7 WWW . K I N G C I T Y . C O M
April 26, 2022
State of California, Dept. of Housing & Community Development Attn: CDBG Program, Sandra Viers, CDBG Representative
Department of Housing and Community Development
2020 West El Camino Avenue
Sacramento, CA 95833
RE: City of King– 20-CDBG-CV1-00018
Disencumber of Funds Request
Dear Ms. Viers:
Please accept this letter as a formal request for the CDBG Department to proceed with disencumbering the following funds for an awarded activity within our contract 20- CDBG-CV1-00018:
Activity Awarded Amount Disencumber Amount
Subsistence Payments $83,212.00 $0
If you have any questions or additional concerns, please do not hesitate to contact our consultant Adams Ashby Group, Inc. Lorie Ann Adams at 916-449-3944.
Thank you again for your attention to these matters.
Sincerely,
Steven Adams
City Manager
cc: Lorie Adams, Adams Ashby Group, Inc.
EXHIBIT 2
Item No. 11(A)
REPORT TO THE CITY COUNCIL
DATE: APRIL 26, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF PROJECT EXPENDITURE NEEDS AND
REVENUE STRATEGIES
RECOMMENDATION:
It is recommended the City Council direct staff to prepare an Ordinance for Council consideration to be placed on the November 8, 2022 ballot to increase the local sales tax by .5%.
BACKGROUND:
At the June 8, 2021 meeting, the City Council adopted the Biennial Budget for FY 2021-22/FY 2022-23. The budget included an update to the City’s Long-Range Financial Plan. Two scenarios were presented. The first was the base plan with 10-year projections of existing revenues and expenditures. The second was the deferred maintenance plan, which included projections of expenditures and revenues to address unfunded needs.
The deferred maintenance plan included a recommendation to fund the additional expenditures through a .5% local sales tax measure. It was proposed to obtain additional public feedback and then present the specific recommendations for consideration prior to the deadline for submitting ballot measures. Staff has provided public information regarding the local sales tax measure through a newsletter article, article in the Rustler, social media, the City’s website, the State of the City Address, the City’s Budget Committee, and community groups. Thus far, the feedback has been minimal and primarily either neutral or supportive.
CITY COUNCIL
CONSIDERATION OF PROJECT EXPENDITURE NEEDS AND REVENUE
STRATEGIES
APRIL 26, 2022
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If directed to proceed, staff recommends presenting the measure for consideration to the City Council at the June 14, 2022 meeting. This would be well in advance of the August 12, 2022 deadline.
DISCUSSION:
Financial Status
The City’s financial audit for FY 2020-21 was presented to the City Council at the April 12th meeting, which indicated the General Fund debt has been repaid and the City has established a reserve of over $1.7 million. Based on current projections for FY 2021-22, the City’s revenue picture continues to improve. As a result, staff projects the City will be able to maintain existing staffing levels on a long-term basis, establish a healthy reserve, address additional priority staffing needs, begin to address some of the top maintenance issues, and withstand anticipated revenue reductions if a likely recession occurs during the next few years.
Therefore, prior revenue and budget measures have accomplished everything they were intended to do. However, remaining future unmet expenditure needs have been identified through the City’s long-range financial planning process. In addition, staff now projects future cannabis tax revenues will be much less than originally projected and may not be a reliable revenue source the City can depend on.
Meaningful progress has been made on the City’s top critical priorities. Staff believes the City should now expand efforts to other priorities that were not part of the initial most critical items but are still important. The following are needs identified that staff believe are urgent and remain unfunded.
Deferred Maintenance of City Facilities
One of the unique things that makes King City special is all the amenities the City provides for such a small community, such as the golf course, pool, rec center, and Airport. However, due to the length of the financial crisis the City has experienced, there is a tremendous amount of repairs and upgrades that have been deferred for a long time. Staff recently prepared an assessment of the most pressing items, which resulted in a list of items estimated to cost approximately $2 million. A copy of the most updated list is attached.
Some of the highest priority items include remodel and termite damage repair of the Recreation Center, resurfacing the pools, resurfacing the tennis courts, and replacement of the well at the City Park/Golf Course. Given the current
CITY COUNCIL
CONSIDERATION OF PROJECT EXPENDITURE NEEDS AND REVENUE
STRATEGIES
APRIL 26, 2022
PAGE 3 OF 6
improvements to the ongoing General Fund balance, staff recommends the City begin to address some of these items in FY 2022-23. However, additional revenue will be needed to address everything necessary in a timely manner. It is recommended the City budget an additional $200,000 annually.
Street Improvements
The City has increased its street improvements with TAMC Measure X and State Gas Tax funds. However, additional funding is needed in order to improve the City’s streets to an appropriate condition within a timely manner. There are a number of streets in poor condition that the City receives frequent complaints about. For example, under the current street improvement plan, the west portion of Broadway Street will not be repaved until 2025, Division Street in 2026, and Metz Road and Third Street later than that. It is recommended that the City increase street improvement funding by $350,000 annually to accelerate these and other projects.
ADA Deficiencies
The City recently contracted with a professional firm to prepare a citywide ADA Assessment Plan as required by law. It identified close to $2 million in improvements needed. The City can address these deficiencies gradually over time, but it is important for the City to demonstrate progress is being made to reduce liability and address this important need. It is recommended the City budget $75,000 annually for access improvements.
Public Safety
The City has made a major investment in implementing the Comprehensive Plan to End Youth Violence, which has resulted in a substantial reduction in violence in the community. Eliminating violence has been a top priority in order to protect local residents; to ensure all youth are safe and have an opportunity to reach their full potential; and to address barriers to other goals important to improving quality of life, such as attracting businesses and jobs, doctors, nurses, teachers, recreation opportunities and other important services.
However, the City has unfortunately experienced an increase in violent crimes again during the past year. Staff believes it is important to continue to invest in improvements to public safety and crime prevention efforts in order to combat efforts by gangs to recruit new members and increase their activity.
Unfortunately, this will likely need to be an ongoing effort for some time in order to permanently eradicate youth violence issues.
CITY COUNCIL
CONSIDERATION OF PROJECT EXPENDITURE NEEDS AND REVENUE
STRATEGIES
APRIL 26, 2022
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Staff recommends increasing staffing to establish a gang unit within the Investigations Section. The Police Department is also working on a number of public outreach and crime prevention activities. It is recommended a minimum of $175,000 annually be allocated for public safety improvements.
Parks and Landscaping Maintenance
The City has been concentrating efforts on improving its sports fields, which has resulted in renovations of every field. However, the Public Works Department staffing levels are not sufficient to properly maintain the City’s parks and facilities on an ongoing basis. The most significant concern is that there will be two large parks added in the Mills Ranch development within the next several years. In addition, the Downtown Plaza project, the streetscape project, and King City in Bloom projects will be substantially expanding landscaping in the downtown and other areas over the next year.
It is important to have a plan in place to be able to maintain these areas effectively to protect this investment. It is estimated that the cost of increased maintenance needs will be approximately $200,000 annually.
Contingency and Discretionary Funding
Staff believes it is important to create the ability to budget contingency and discretionary funds each year in order to maintain long-term financial stability and to ensure the City keeps moving forward in the future. Staff recommends the City plan for $200,000 annually for unanticipated expenses, new improvements identified, and other cost increases that will likely occur.
Advantages of a Sales Tax Increase
There are two key advantages of targeting a local sales tax measure as the primary revenue enhancement recommendation. First, sales tax is always a good revenue option because a large portion is paid by people that reside outside the City due to the large volume of travelers that purchase items at the businesses fronting Highway 101. Second the City’s current sales tax rate is lower than most other jurisdictions in the area, which means the City could increase the rate by .5% and maintain a competitive rate.
Below is a comparison of local sales tax rates for cities in Monterey, Santa Cruz and San Luis Obispo Counties:
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CONSIDERATION OF PROJECT EXPENDITURE NEEDS AND REVENUE
STRATEGIES
APRIL 26, 2022
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Greenfield 1.75%
Atascadero 1.5%
Carmel 1.5%
Del Rey Oaks 1.5%
Grover Beach 1.5%
Marina 1.5%
Monterey 1.5%
Morro Bay 1.5%
Pacific Grove 1.5%
Paso Robles 1.5%
Salinas 1.5%
San Luis Obispo 1.5%
Seaside 1.5%
Soledad 1.5%
Arroyo Grande 1.0%
Gonzales 1.0%
Pismo Beach 1.0%
Sand City 1.0%
King City 1.0%
Of the few remaining cities at 1%, Arroyo Grande is also considering a proposed increase in November. Pismo Beach and Sand City have large tax bases that serve a small community, so they would not have a need for additional revenue.
Sales Tax Measure
If directed to proceed, staff recommends the measure be structured very similar to the wording of the last measure, including the same 10-year sunset period extension. One key change is that staff recommends against including an advisory measure. A new State ballot measure called the Taxpayer Protection and Government Accountability Act has been proposed which is being circulated for signatures to qualify for the November 2022 election. It would establish new restrictions on local tax measures, including a ban on advisory measures, and it would be retroactive to January 2022. Therefore, staff recommends drafting the City’s sales tax measure to be compliant with this proposed State initiative in case it is approved to ensure it does not impact the validity of the City’s measure.