AGENDA
REGULAR MEETING OF THE
CITY OF KING CITY COUNCIL
AND
Sitting as SUCCESSOR AGENCY OF
THE RDA FOR THE CITY OF KING
TUESDAY MAY 24, 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
None
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 Any Council Member, the City Manager, or the City Attorney may request that an item be withdrawn from the Consent Agenda to allow for full discussion.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 Items withdrawn from the Consent Agenda may be considered by separate motions at the conclusion of the discussion of each item.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 May 10, 2022, Council Meeting Recommendation: approve and file.
B. Consideration: City of King Check Register May 1, through May 15, 2022 Recommendation: receive and file.
C. Consideration: Successor Agency Register May 1, through May 15, 2022 Recommendation: receive and file.
D. Consideration: King City Swim Team Program and Amendment to Master Fee Schedule
Recommendation: 1) approve the City summer swim team program; and 2) adopt a Resolution amending the Master Fee Schedule to establish enrollment fees for the King City Swim Team.
E. Consideration: Direction Related to City Affordable Housing Incentives, for the CHISPA Mills Ranch Affordable Housing Project and Designate the Police Chief to Sign Documents Related to the CHISPA Mills Ranch Affordable Housing Project
Recommendation: 1) Designate and authorize the Police Chief to sign documents related to the CHISPA Mills Ranch Affordable Housing Project. 2) Authorize the City Attorney to prepare an Agreement between the City and CHISPA related to Affordable Housing Incentives.
F. Consideration: Proposed Staffing and Salary Adjustments Recommendation: 1) approve the creation of one new Planning Technician position, classification and job description; 2) approve the addition of one new Accounting Technician position and amended job description; 3) approve the addition of one new Code Enforcement Officer position and amended job description; 4) approve the elimination of one part-time Animal Control Officer position and one part-time Police Records Clerk position; and 5) approve an amended classification plan to add the new classification and adjust salaries for executive positions.
G. Consideration: FY 2022-23 Street Improvement Project, Including Adoption of Finding of a Categorical Exemption, Pursuant to Section 15301 of the CEQA Guidelines
Recommendation: 1) adopt a Resolution designating street projects for revenues from SB 1 - The Road Repair and Accountability Act of 2017 for FY 2022-23; 2) approve the FY 2022-23 Street Improvement Project; 3) approve a tentative 5-year plan for future street projects; and 4) adopt a finding of a categorical exemption, pursuant to Section 15301 of the CEQA Guidelines.
H. Consideration: Appropriation for a New Slide Pool Pump Recommendation: appropriate $15,000 for a new slide pump.
I. Consideration: A Resolution of the City Council of the City of King Making Findings Related to the Continued Existence of a State of Emergency Due to COVID-19 and Re-Authorizing the Conduct of Public Meetings of the Legislative Bodies of the City Via Remote Teleconferencing for an Initial 30- Day Period Pursuant to the Ralph M. Brown Act as Amended by Assembly Bill No. 361
Recommendation: adopt a Resolution making findings related to the continued existence of a State of Emergency due to COVID-19 and re-authorizing the conduct of public meetings of the legislative bodies of the city via remote teleconferencing for an initial 30-day period pursuant to the Ralph M. Brown act as amended by AB 361.
10. PUBLIC HEARINGS
None
11. REGULAR BUSINESS
A. Consideration: King City Community Power Operational Agreement and Rate Setting Update
Recommendation: approve staff’s recommendations regarding future steps involving operation and customer rate setting of King City Community Power (KCCP).
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
B. Conference with Labor Negotiators
Pursuant to Government Code Section §54957
Agency Representative: Steven Adams
Employee Organization: SEIU Local 521
C. Conference With Legal Counsel—Anticipated Litigation Significant exposure to litigation pursuant to paragraph (2) of Government Code Section 54956.9(d): (One case)
Existing facts and circumstances for closed session consist of the receipt of a written threat of litigation entitled “Notice of Intent to File a Verified Writ of Mandate” from Finney Arnold, LLP, on behalf of proposed petitioners Working Families of Monterey County and Efrain Aguilera, which notice was received by the City Clerk on May 16, 2022. The threatened litigation challenges the City’s approval of a proposed Grocery Outlet store at 1023 Broadway Street in King City, California. The Notice of Intent is attached to the Agenda for public inspection. See attached exhibit A.
13. ADJOURNMENT
The City of King is an equal opportunity provider and employer.
EXHIBIT A
Monthly Schedule, May 2022
Mike LeBarre, Mayor, King City California
MONTHLY MEETINGS:
5-2 Transportation Agency of Monterey County (TAMC), Rail Policy Committee, Chair, Zoom
5-3 Blue Zones Monterey County Steering Committee, Salinas 5-4 Transportation Agency of Monterey County (TAMC),
Executive Committee, Zoom
5-4 Transportation Agency of Monterey County (TAMC), Bicycle and Pedestrian Facilities Committee, Zoom
5-6 Monterey County Water Resource Agency (MCWRA),
Personal and Administration Committee, Zoom
5-6 Monterey County Water Resource Agency (MCWRA),
Finance Committee, Zoom
5-6 Monterey County Mayors Association (MCMA), Zoom
5-6 CA Mayors Association, Zoom
5-6 House America/HUD, Zoom
5-9 BAPC Committee (MST) Chair, Zoom
5-9 Monterey-Salinas Transit (MST) Board of Directors, Zoom 5-10 King City Council, Council Chambers
5-16 Monterey County Water Resource Agency (MCWRA),
Board of Directors, Zoom
5-18 Monterey Bay Air Resource District (MBARD) Board of Directors, Zoom
5-20 Coast Rail Coordinating Council (CRCC), Monterey
5-20 House America/HUD, Zoom
5-23 Salinas Valley Mayors and Managers (SVMM), Greenfield 5-24 King City Council, Council Chambers
5-25 Transportation Agency of Monterey County (TAMC), Board of Directors, 1st Vice Chair, Zoom
5-26 Monterey County Convention & Visitors Bureau (MCCVB), Advisor, Zoom
LOCAL-STATE-FEDERAL BRIEFINGS:
5-4 District 3 Supervisor Lopez/Mayors Briefing, Zoom
5-5 Whitehouse Briefing, Zoom
5-5 Cal OES Briefing, Phone
5-12 Whitehouse Briefing, Zoom
5-12 Cal OES Briefing, Phone
5-19 Whitehouse Briefing, Zoom
5-19 Cal OES Briefing, Phone
5-26 Whitehouse Briefing, Zoom
5-26 Cal OES Briefing, Phone
ADDITIONAL MEETINGS/EVENTS
5-4 South County ITN Steering Committee, Zoom
5-4 Congresswoman Zoe Lofgren City Tour, King City
5-6 King City Mental Health Forum Planning, Zoom
5-6 TAMC/CALTRANS Update/Briefing, Zoom
5-7 Rotary Monarch Butterfly Project Recognition, San Lorenzo Park
5-10 Monterey County Convention & Visitors Bureau (MCCVB), South County Briefing, Zoom
5-11 Patricia Feller Special Recognition, Mee Memorial
5-15 Peace Officers Memorial Day, National
5-16 King City/Supervisor Lopez/DA Briefing, Zoom
5-18 104.3 SMG Radio Interview w/John Michael, Phone
5-19 MBEP Housing Forum, Soledad
5-23 Project Homekey Briefing/Update, Zoom
5-25 King City Mental Health Forum, Rec Center
5-27 Broadband JPA Signing Ceremony, Gonzales
5-30 VFW Memorial Day Ceremony, King City Cemetery
7(A)
Not official minutes of the meeting.
RE D U C E R E U S E R E C Y C L E
“To manage Salinas Valley solid waste as a resource, promoting sustainable, environmentally sound and cost-effective practices through an integrated system of waste reduction, reuse, recycling, innovative technology, customer service, and education.”
BOARD OF DIRECTORS
S P E C I A L M E E T I N G HI G H L I G H T S
April 28, 2022
ATLAS ORGANICS
Atlas Organics was awarded a Professional
Services agreement and Lease agreement for
Organics Processing, Composting, and
Product Marketing Services at the Johnson
Canyon Landfill at the March Board meeting.
Atlas made a presentation to the Board with an update on the design, construction, transition plan, marketing plan, and hiring process taking place to ensure a smooth
transition from the current vendor. Atlas Organics will assume operations beginning July 1, 2022 with an estimated tonnage of over 45,000 tons of organic material expected for fiscal year 2022-23.
RECOGNITIONS
The Authority’s Resources Recovery staff works diligently with the community in the compliance of mandates established by AB 1826 & SB 1383. Natividad School in Salinas and Paleteria y Neveria Maru in Greenfield were recognized for the implementation of their Food Scraps & Diversion Program. Natividad School has
reduced waste by 50% and
Paleteria y Neveria Maru is now
diverting 450lbs
of waste per week or 11 tons
per year. Excellent work!
UPDATE ON THE SUN STREET TRANSFER STATION RELOCATION PROJECT The Board was informed that due to unforeseen permit issues the relocation project is expected to be delayed approximately seven to eight months. Republic Services and the County of Monterey are working diligently to resolve the issues. An adjustment to the Authority’s budget and rate schedule will likely be required due to the extended deadline for relocation. Authority staff will be providing information on the options available to the Board at its May meeting.
FINANCIAL REPORT FOR MONTH ENDED FEBRUARY2022 (66.7% OF THE FISCAL YEAR) Revenue collected $ 16,870,486 (72.5% of Estimated Revenue of $23,271,850) Expenditures for operations $ 13,393,810 (64.6% of Operating Budget of $20,525,000) Cash balance $ 35,189,504
7(A)
Not official minutes of the meeting.
“Manejar los residuos sólidos del Valle de Salinas como un recurso, promocionando prácticas sostenibles y ecológicamente racionales y practicas costos eficaces a través de un sistema integrado de reducción, reutilización, reciclaje, tecnología innovadora, servicio al cliente y educación.”
R E D U C I R R E U T I L I Z A R R E C I C L A R
JUNTA ESPECIAL DIRECTIVA
N O T A S DE S T A C A D A S
28 de abril 2022
(Agencia gubernamental de gestión de residuos sólidos)
ATLAS ORGANICS
Atlas Organics recibió un acuerdo de
Servicios Profesionales y un acuerdo de
Arrendamiento para Servicios de
Procesamiento de Orgánicos, Compostaje y
Comercialización de Productos en el Relleno
Sanitario de Johnson Canyon en la reunión
del Consejo de marzo. Atlas hizo una presentación al
Consejo con una actualización sobre el diseño, la
construcción, el plan de transición, el plan de marketing y el proceso de contratación que se está llevando a
cabo para garantizar una transición sin problemas
desde el proveedor actual. Atlas Organics asumirá las
operaciones a partir del 1 de julio de 2022 con un
tonelaje estimado de más de 45,000 toneladas de material orgánico esperado para el año fiscal 2022-23.
RECONOCIMIENTO
El personal de Recuperación de Recursos de la Agencia trabaja diligentemente con la comunidad en el cumplimiento de los mandatos establecidos por AB 1826 y SB 1383. La Escuela Natividad en Salinas y Paleteria y Neveria Maru en Greenfield fueron reconocidas por la implementación de su Programa de
Desvío y Residuos de Alimentos. La escuela
Natividad ha reducido los desechos en un
50% y Paleteria y Neveria Maru ahora está
desviando 450 libras de residuos por semana
o 11 toneladas por año. ¡Excelente trabajo!
ACTUALIZACIÓN SOBRE EL PROYECTO DE REUBICACIÓN DE LA ESTACIÓN DE TRANSFERENCIA DE SUN STREET Se informó al Consejo que, debido a problemas de permisos imprevistos, se espera que el proyecto de reubicación se retrase aproximadamente entre siete y ocho meses. Republic Services y el Condado de Monterey están trabajando diligentemente para resolver los problemas. Es probable que se requiera un ajuste al presupuesto de la Agencia y a las tarifas debido a la extensión del plazo para la reubicación. El personal de la Agencia proporcionará información sobre las opciones disponibles para el Consejo en su reunión de mayo.
INFORME FINANCIERO DEL MES FIN ALIZADO EN FEB RERO 2022 (66.7% DEL AÑ O FISCAL) Ingresos recaudados $ 16,870,486 (72.5% del Ingreso Estimado de $23,271,850) Gastos de operaciones $ 13,393,810 (64.6% del Presupuesto Operativo de $20,525,000) Saldo de caja $ 35,189,504
City Council Meeting
May 10, 2022
1.__CALL TO ORDER:
Regular Meeting called to order at 6:00pm by Mayor LeBarre. Mayor LeBarre stated that he would be adjourning the meeting tonight in honor of John Serritelli.
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.
City Staff: City Manager Steven Adams; City Attorney Roy Santos; Executive Admin.
Asst./Deputy City Clerk, Erica Sonne.
4. CLOSED SESSION ANNOUNCEMENTS:
None
5.__PRESENTATIONS:
A. Update on Highway 101 Upgrade Project, Adam Rianda, Caltrans. Mr. Rianda stated that they are currently in Stage 4. He reported that First St. N opened last night and Canal N off opened this morning. He shared a schedule of the off and on ramps left to complete.
6. PUBLIC COMMUNICATIONS:
None
7. COUNCIL COMMUNICATIONS:
Council Member Cullen stated that Carlos Victoria is a new Southern Monterey County Foundation Board member. He was made aware by Supervisor Lopez about a 5-minute Narcan training, and it was suggested to do the training at a Council meeting. He would like council to consider adding to a future agenda.
Council agrees.
Council Member Acosta stated today is National Fentanyl Day. She expressed her appreciation for the Police Department and their use of Narcan and stated that more Narcan in hands saves lives.
Council Member DeLeon stated he had nothing to report tonight.
Mayor Pro Tem Victoria stated that we have been having lots of graffiti however kudos to the Police Department and Public Works for getting it cleaned up.
Mayor LeBarre stated the City was fortunate to have Congresswomen Lofgren visit for 4 hours last week.
8. CITY STAFF REPORTS AND COMMENTS:
City Manager Steven Adams stated graffiti has been growing worse from gang members. The city is working on a standard paint color so that we always have it on hand. May 25th is a mental health forum. 9(A)
City Attorney Roy Santos stated nothing from him tonight.
9. CONSENT AGENDA
A. Consideration: Meeting Minutes of April 26, 2022, Council Meeting B. Consideration: City of King Check Register April 16, through April 30, 2022 C. Consideration: Changes to Annual Fire Inspection Program D. Consideration: Letter of Support for AB 1654
E. Consideration: City of King Fiscal Year 2020-21 AB 1600 Development Impact Fee Report F. Consideration: Director of Public Works/ City Engineer Job Description G. Consideration: Riverview Gardens Landscape Maintenance District Annual Assessment for Fiscal Year 2022-23
H. Consideration: Amendment to Financial Incentives for Affordable Housing Projects Action: Motion to approve consent agenda items A-H by Victoria and seconded by DeLeon.
AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon, Victoria NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
10. PUBLIC HEARINGS:
None
11. REGULAR BUSINESS:
A. Consideration: South Salinas Valley Broadband Authority Joint Exercise of Powers Agreement City Manager Adams introduced this item.
Action: Motion to 1) approve and authorize the Mayor to execute a Joint Exercise of Powers Agreement creating the South Salinas Valley Broadband Authority by DeLeon and seconded by Acosta.
AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon, Victoria NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Action: Motion 2) appoint a Director (LeBarre) and Alternate (Cullen) to the Board of Directors by DeLeon and seconded by Acosta
AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon, Victoria NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
Action: Motion 3) appropriate $25,000 from the General Fund unappropriated fund balance for the operation of the Joint Powers Authority (JPA) by Cullen and seconded by DeLeon AYES: Council Members: LeBarre, Acosta, Cullen, DeLeon, Victoria
NOES: Council Members:
ABSENT: Council Members:
ABSTAIN: Council Members:
12. CITY COUNCIL CLOSED SESSION
A. Conference with Labor Negotiators
Pursuant to Government Code Section 54957
Agency Representative: Steven Adams
Employee Organization: At-will Employee, Chief of Police B. Conference with Labor Negotiators
Pursuant to Government Code Section 54957
Agency Representative: Steven Adams
Employee Organization: At-will Employee, Public Works Director C. Conference with Labor Negotiators
Pursuant to Government Code Section §54957
Agency Representative: Steven Adams
Employee Organization: SEIU
ADJOURNMENT:
Mayor LeBarre adjourned the meeting at 6:45p.m. to closed session. City Attorney Santos read the closed session title into the record. Mayor LeBarre opened the meeting in regular session at 7:16 reporting no reportable action. Mayor LeBarre adjourned the meeting in memory of King City Firefighter, Fire Department Administrative Assistant and beloved member of the community, John Serritelli at 7:18 on a motion by Cullen and second by Acosta.
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: MAY 24, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: MIKE HOWARD, FINANCE DIRECTOR
RE: CONSIDERATION OF CITY OF KING CHECK REGISTER MAY 1
THROUGH MAY 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: MAY 24, 2022
TO: HONORABLE CHAIR AND MEMBERS OF THE BOARD
FROM: MIKE HOWARD, FINANCE DIRECTOR
RE: CONSIDERATION OF SUCCESSOR AGENCY CHECK
REGISTER FOR MAY 1 THROUGH MAY 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.
Item No. 9(D)
REPORT TO THE CITY COUNCIL
DATE: MAY 24, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ANDREA WASSON, RECREATION COORDINATOR
RE: CONSIDERATION OF KING CITY SWIM TEAM PROGRAM AND
AMENDMENT TO MASTER FEE SCHEDULE
RECOMMENDATION:
It is recommended the City Council: 1) approve the City summer swim teach program; and 2) adopt a Resolution amending the Master Fee Schedule to establish enrollment fees for the King City Swim Team.
BACKGROUND:
The King City Swim team has been an independently run program for the last 25 plus years. The local coaches are now retiring, and the City Recreation Department is proposing to manage the summer swim team program. Current fees charged are $100 per child, and staff is proposing that same fee structure for the 2022 season. Therefore, staff is recommending an amendment to the City’s Master Fee schedule to address this issue.
DISCUSSION:
Fees are based on the cost of the City’s administration of the program. The swim team program is for children ages 8 – 18 and runs from June 7 through July 29, 2022. The program will be open to 25 swimmers. Coaching of the swim team will be supervised by the Recreation Coordinator, experienced swim team volunteers and lifeguard instructors. Swim team practice will be held Tuesday - Friday for 45 minutes each day. The program is organized and insured through USA Swimming and Coast Valley Aquatic League.
COST ANALYSIS:
Estimated gross revenue involved is projected to be in the range of $2,000 – $2,500. The fee is lower than other jurisdictions, so staff recommends
01222.0005/790152.1
Item No. 9(E)
REPORT TO THE CITY COUNCIL
DATE: MAY 24, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: DOREEN LIBERTO, AICP, COMMUNITY DEVELOPMENT
DIRECTOR
ROY SANTOS, CITY ATTORNEY
RE: DIRECTION RELATED TO CITY AFFORDABLE HOUSING
INCENTIVES, FOR THE CHISPA MILLS RANCH AFFORDABLE
HOUSING PROJECT AND DESIGNATE THE CHIEF OF POLICE,
KEITH BOYD, TO SIGN DOCUMENTS AND AGREEMENTS
RELATED TO THE CHISPA MILLS RANCH AFFORDABLE
HOUSING PROJECT
RECOMMENDATION:
Staff recommends the City Council:
1. Designate and authorize the Chief of Police, Keith Boyd, to sign documents related to the CHISPA Mills Ranch Affordable Housing Project and execute an Agreement, in a form approved by the City Attorney, with CHISPA relating to their receipt of PLHA funding from the City.
2. Authorize the City Attorney to prepare an Agreement between the City and CHISPA related to receiving PLHA funding and In-Lieu Fee funding from the City.
BACKGROUND:
On August 30, 2005, the City Council approved the Mills Ranch Specific Plan and Vesting Tentative Tract Map. To comply with the City’s Inclusionary Housing Ordinance, the project needed to include 15% inclusionary housing for low-income households. This required the project provide 60 affordable housing units. In 2006, the City Council entered into the Mills Ranch Affordable Housing Program Agreement which allowed the developer to provide 10%, or at least 40 units, as affordable housing onsite. The remaining 5% obligation was met by providing $605,000 to the Housing Authority to rehab Leo A. Meyer Senior Plaza. Five parcels MAY 24, 2022
CITY COUNCIL
CHISPA AFFORDABLE HOUSING INCENTIVES
PAGE 2 of 4
01222.0005/790152.1
were identified in the Mills Ranch Specific Plan for the 40 or more affordable housing units. The Community Housing Improvement Systems and Planning Association, Inc. (“CHISPA”) will be constructing the affordable housing units in the Mills Ranch project. Their intent is to obtain government funding to construct the units.
On May 9, 2022, the City Council adopted Resolution No. 2022-4873 approving an Affordable Housing Financial Incentive Program. CHISPA is requesting to take advantage of the City’s Program to better compete for Tax Credits. Since the City Manager lives within 500-feet of the CHISPA project, staff is requesting the City Council designate and authorize the Police Chief to sign documents related to this project. Staff is also requesting the City Council Identify loan terms for the CHISPA Mills Ranch Affordable Housing Project and authorize the City Attorney prepare an Agreement between CHISPA and the City for City Council consideration.
DISCUSSION
In August 2020, the Planning Commission approved architectural review for the CHISPA Mills Ranch Affordable Housing Project (Project). The 40-units Project will be located on five separate lots (8 units on each lot) created as part of the Mills Ranch Specific Plan.
CHISPA is requesting to take advantage of the City’s Affordable Housing Financial Incentive Program. In particular, CHISPA is requesting to make use of the Permanent Local Housing Allocation (PLHA) Program, the Affordable Housing Development Impact Fee Adjustment Program, and the City’s affordable housing in-lieu fee funds. All requests are subject to availability of funds. On December 21, 2021, the City Council adopted a Resolution amending the percentage allocation of the PLHA Program. The State is requesting additional documentation on the percentage allocation; therefore, staff will be returning to the City Council with this information for adoption of another Resolution.
The City Attorney will prepare an Agreement with CHISPA to be consistent with Resolution No. 2022-4873 but needs City Council direction.
1. PLHA Funds: CHISPA is requesting a loan for the maximum allowable amount from the PLHA Fund. (Note that the PLHA Allocation Program must be modified to allocate this amount.) These funds are distributed as a lowinterest loan. The loan interest can be from 1 to 3 percent.
Staff recommends the loan be at 1 percent. The term of the loan will be fiftyfive years. Repayment of the loan should begin immediately. Lastly staff MAY 24, 2022
CITY COUNCIL
CHISPA AFFORDABLE HOUSING INCENTIVES
PAGE 3 of 4
01222.0005/790152.1
recommends the Council designate and authorize the Chief of Police, Keith Boyd, to sign documents related to the CHISPA Mills Ranch Affordable Housing Project and execute an Agreement, in a form approved by the City Attorney, with CHISPA relating to their receipt of PLHA funding from the City.
2. In-Lieu Fee Funds: The City’s Inclusionary Housing Ordinance allows developers to pay an In-Lieu fee rather than building affordable housing onsite. CHISPA is requesting funds from the In-Lieu Fee Funds. This program allows a grant of up to $1,000 per unit up to 50 units per project.
The Rava Employee Housing Project off of Bitterwater is the first project to agree to an In-Lieu fee. However, that project is not far enough along to require payment of the In-Lieu fee to the City.
Staff recommends that Council authorize staff to award CHISPA up to $29,250 in In-Lieu fee funds, should they become available, and authorize the City Attorney to prepare an Agreement between the City and CHISPA relating to their receipt of the In-Lieu fee funds. Lastly staff recommends the Council designate and authorize the Chief of Police, Keith Boyd, to execute an Agreement, in a form approved by the City Attorney, with CHISPA relating to their receipt of In-Lieu fee funding from the City.
Since the adjusted Affordable Housing Development Impact Fee is not an incentive and open to all affordable housing projects, it will be addressed at the building permit stage.
ENVIRONMENTAL REVIEW:
The City of King has determined that the proposed action is not a project as defined by the California Environmental Quality Act (“CEQA”) per Guidelines Section 15378. CEQA Guidelines Section 15061 includes the general rule that CEQA applies only to activities which have the potential for causing a significant effect on the environment. Where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment, the activity is not subject to CEQA. Because the proposed action and this matter have no potential to cause any effect on the environment, or because it falls within a category of activities excluded as projects pursuant to CEQA Guidelines section 15378, this matter is not a project. Because the matter does not cause a direct or foreseeable indirect physical change on or in the environment, this matter is not a project. Any subsequent discretionary projects resulting from this action will be assessed for CEQA applicability.
Item No. 9 (F)
REPORT TO THE CITY COUNCIL
DATE: MAY 10, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF PROPOSED STAFFING AND SALARY
ADJUSTMENTS
RECOMMENDATION:
It is recommended the City Council: 1) approve the creation of one new Planning Technician position, classification and job description; 2) approve the addition of one new Accounting Technician position and amended job description; 3) approve the addition of one new Code Enforcement Officer position and amended job description; 4) approve the elimination of one part-time Animal Control Officer position and one part-time Police Records Clerk position; and 5) approve an amended classification plan to add the new classification and adjust salaries for executive positions.
BACKGROUND:
The City has been through an extended and severe financial crisis. The extreme loss of revenues caused the need for major reductions in staffing, which also led to a drastic decrease in service levels, improvement projects, and maintenance.
During the past several years, budget strategies and measures implemented have been successful in achieving a positive General Fund balance for the first time in over 18 years. Part of this effort also involved measures to address priority needs in the community. Staffing was restructured to address deficiencies as effectively as possible, but the progress was accomplished largely with ongoing staffing levels.
As a result, the increased activity involved in managing and administering the increase in projects, programs and development applications necessary to make progress is now exceeding staff’s capabilities. In addition, a number of new ongoing State, Federal and Local agency requirements have placed an increased burden on staffing demands outside of the City’s control. Currently, the most significant areas where tasks exceed available staff time include the City Manager’s Office, Human Resources, Community Development and Public
CITY COUNCIL
CONSIDERATION OF STAFFING AND SALARY ADJUSTMENTS
MAY 24, 2022
PAGE 2 OF 3
Works. Therefore, staff adjustments are recommended at this time. However, staff has been careful to develop recommendations that will enable the City to meet a variety of needs with a minimal increase in costs. With the exception of a couple potential additional adjustments in the future, staff believes these measures will put the City in a good position to sustain ongoing staffing needs and demands for the foreseeable future.
DISCUSSION:
The following changes are recommended:
Planning Technician
A new classification and position of Planning Technician is recommended. The position would report to the Planner and provide technical and administrative support to both the Community Development and Public Works Departments.
The majority of time will be dedicated to the Community Development Department, but it may fluctuate in the future if a recession is experienced resulting in a decrease in private development activities. Therefore, sharing the position between two departments will enable the City to assign work most cost effectively on an ongoing basis in response to changing workload demands. It is also anticipated that the new position will reduce hours needed for contract services, so a portion of the increased cost will be addressed through savings.
Accounting Technician
The City had a number of Finance Department positions that were eliminated following the financial crisis. Finance and accounting services were contracted out and one in-house Accountant position was maintained. When the incumbent retired, the position was eliminated to help fund a dedicated human resources position. The responsibilities were transferred to a Customer Service Assistant and the Human Resources Manager. It is now necessary to re-establish a fulltime position to help handle ongoing financial records, entries, etc. The position will report to the Human Resources Manager and also provide human resources clerical support. In addition, it will enable the existing Customer Service Assistance position to be reassigned to the Public Works Department, which will help address their existing clerical needs. These needs will be further increased with the addition of the new Public Works Director position.
Code Enforcement Officer
An additional Code Enforcement Officer position is recommended. The job description is being amended to add animal control and office records responsibilities. The majority of the costs will be addressed by eliminating the part-time Animal Control Officer and Records Clerk positions. One of the key
Item No. 9(G)
REPORT TO THE CITY COUNCIL
DATE: MAY 24, 2022
TO: CITY COUNCIL
FROM: OCTAVIO HURTADO, CITY ENGINEER
RE: CONSIDERATION OF FY 2022-23 STREET IMPROVEMENT
PROJECT, INCLUDING ADOPTION OF FINDING OF A
CATEGORICAL EXEMPTION, PURSUANT TO SECTION 15301
OF THE CEQA GUIDELINES
RECOMMENDATION:
It is recommended the City Council: 1) adopt a Resolution designating street projects for revenues from SB 1 - The Road Repair and Accountability Act of 2017 for FY 2022-23; 2) approve the FY 2022-23 Street Improvement Project; 3) approve a tentative 5-year plan for future street projects; and 4) adopt a finding of a categorical exemption, pursuant to Section 15301 of the CEQA Guidelines; and.
BACKGROUND:
With the passage of Measure X and SB 1, funding for street improvements has increased, which has enabled the City to develop a more comprehensive street improvement program. A Street Improvement Program 5-Year Capital Improvement Project was approved as part of the FY 2021-22 FY 2022-23 Biennial Budget. The CIP programs projected funding, but it does not identify the specific streets.
In conjunction with TAMC, the City has also completed a Pavement Management System. The system takes into account data on the condition of each street to determine recommended streets for overlay and slurry seal improvements to manage the projects over time in the most cost-efficient manner. Therefore, this system is used to help identify recommended streets for resurfacing and slurry seal treatments each year.
The State requires the City to specifically designate the projects proposed to be funded with SB 1 funding. The window for submitting proposed SB 1
CITY COUNCIL
CONSIDERATION OF FY 2022-23 STREET IMPROVEMENT PROJECT,
INCLUDING ADOPTION OF FINDING OF A CATEGORICAL EXEMPTION, PURSUANT TO SECTION 15301 OF THE CEQA GUIDELINES
MAY 24, 2022
PAGE 2 OF 4
expenditures for FY 2022-23 ends June 30, 2022 with a second deadline to submit of October 1, 2022. Updated Measure X and SB 1 revenue figures have been received for FY 2022-23. Therefore, staff has prepared a revised list of projects so staff can submit the required documentation for compliance with SB
1. Since many of the street projects utilize a variety of funding sources, the SB 1 report submittal provides a good time to outline and seek Council’s approval for the entire street improvement CIP. This enables staff to coordinate funding sources to address the highest priorities, integrate revenues in the most effective manner, and notify other utilities of upcoming projects so they can schedule their street work prior to resurfacing projects.
DISCUSSION:
The Broadway Street and Broadway Circle street improvement project for FY 2020-21 was delayed in order to coordinate with the Caltrans closure of Broadway Street on and offramps to minimize disruption to the community. In addition, the FY 2021-22 budgeted street improvements to the South San Lorenzo Street area was delayed in order to coordinate with the sidewalk improvement project. Therefore, available funding has accumulated, and street improvements will be more substantial during the upcoming year.
The Pavement Management System maintains staff’s recommended approach of reconstructing a few of the streets in the worst condition each year, while at the same time applying a slurry seal to some of the streets in better condition to prevent them from deteriorating to a point where reconstruction is necessary.
The slurry seal streets will be recommended at a later time. Staff is requesting the City Council approve staff’s recommendations for present and future programmed street projects involving a grind and overlay, which include the following:
FY 2022-23 Broadway Street and Broadway Circle
Talbot Street from Canal Street to South Mildred Street Monte Vista Place from Talbot Street to Reich Street
Reich Street from Canal Street to S San Lorenzo Avenue
Luckett Street from S Mildred Avenue to S San Lorenzo Avenue Seventh Street from Bassett Street to Division Street
South San Lorenzo Avenue from Pearl Street to Division Street FY 2023-24 Division Street and Collins Street
CITY COUNCIL
CONSIDERATION OF FY 2022-23 STREET IMPROVEMENT PROJECT,
INCLUDING ADOPTION OF FINDING OF A CATEGORICAL EXEMPTION, PURSUANT TO SECTION 15301 OF THE CEQA GUIDELINES
MAY 24, 2022
PAGE 3 OF 4
FY 2024-25 Metz Road
FY 2025-26 Broadway Street Phase 1
FY 2026-27 Broadway Street Phase 2
The timing of these projects is tentative at this time and can be escalated if the Local Sales Tax Measure is approved. Staff proposes to include Division Street as a bid alternate for the FY 2022-23 project. If bids are good and revenue is available, staff would then recommend completing it early and the other projects could also move up on the schedule.
COST ANALYSIS:
The current balance of SB 1 funds is $30,854 and Measure X is $469,109. The projected funds from SB 1 in FY 2022-23 are $341,396 and projected funds from Measure X are $526,000, which are recommended to be allocated in full to these projects.
The following are projected funding sources and expenditures for the projects proposed to be programmed:
FY Project SB 1 Measure X RSTP
General
Fund
2022-23 Broadway/Broadway Circle $200,000 $87,047.69 $100,000 2022-23 San Lorenzo Area $372,250 $500,000 $125,000
2022-23 Slurry Seal $295,109
2023-24 Division and Collins $380,000 $300,000 $150,000 2023-24 Slurry Seal $240,000
2024-25 Metz Road $390,000 $250,000 $120,000 $175,000
2024-25 Slurry Seal $250,000
2025-26 Broadway Street Phase I $390,000 $350,000 $200,000 2025-26 Slurry Seal $175,000
2026-27 Broadway Street Phase II $400,000 $350,000 $225,000 2026-27 Slurry Seal $200,000
ENVIRONMENTAL REVIEW:
Staff has performed a preliminary environmental assessment of this project and has determined that it falls within the Class 1 Categorical Exemption set forth in CEQA Guidelines, section 15301 as this project is limited to repair and maintenance of existing facilities and does not involve any expansion of existing uses. Furthermore, staff has determined that none of the exceptions to
RESOLUTION NO. 2022-XXXX
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF KING ADOPTING A LIST OF PROJECTS FOR FISCAL YEAR 2022-23 FUNDED BY
SB 1: THE ROAD REPAIR AND ACCOUNTABILITY ACT OF 2017
WHEREAS, Senate Bill 1 (SB 1), the Road Repair and Accountability Act of 2017 (Chapter 5, Statutes of 2017) was passed by the Legislature and Signed into law by the Governor in April 2017 to address the significant multi-modal transportation funding shortfalls statewide; and WHEREAS, SB 1 includes accountability and transparency provisions that will ensure the residents of King City are aware of the projects proposed for funding in our community and which projects have been completed each fiscal year; and
WHEREAS, the City of King must adopt by resolution a list of projects proposed to receive fiscal year funding from the Road Maintenance and Rehabilitation Account (RMRA), created by SB 1, which must include a description and the location of each proposed project, a proposed schedule for the project’s completion, and the estimated useful life of the improvement; and WHEREAS, the City of King, will receive an estimated $287,776 in RMRA funding in Fiscal Year 2022-23 from SB 1; and
WHEREAS, this is the fifth year in which the City of King is receiving SB 1 funding and will enable the City to continue essential road maintenance and rehabilitation projects, safety improvements, repairing and replacing aging bridges, and increasing access and mobility options for the traveling public that would not have otherwise been possible without SB 1; and WHEREAS, the City used a Pavement Management System to develop the SB 1 project list to ensure revenues are being used on the most high-priority and cost-effective projects that also meet the community’s priorities for transportation investment; and WHEREAS, the funding from SB 1 will help the City maintain and rehabilitate five roads in the City that are in tremendous need of rehabilitation; and WHEREAS, the City has many streets in poor condition and this revenue will help the City establish an ongoing pavement management program that will significantly increase the overall quality of its road system over the next decade; and
WHEREAS, the SB 1 project list and overall investment in the City’s local street and road infrastructure will improve safety, road conditions, appearance of the City, and reduce future costs by enabling the City to maintain its street system in a more efficient manner.
NOW, THEREFORE IT IS HEREBY RESOLVED, ORDERED AND FOUND by the City Council of the City of King, State of California, as follows:
1. The foregoing recitals are true and correct.
2. The following list of proposed projects will be funded in-part or solely with fiscal year 2022- 23 Road Maintenance and Rehabilitation Account revenues:
Grind and Overlay of Talbot Street from Canal Street to S Mildred Street 25 Year Useful Life
Projected Start Date: April 1, 2022
Projected Completion Date: June 30, 2022
Grind and Overlay of Monte Vista Place from Talbot Street to Reich Street 25 Year Useful Life
Projected Start Date: April 1, 2022
Projected Completion Date: June 30, 2022
Grind and Overlay of Reich Street from Canal Street to S San Lorenzo Avenue 25 Year Useful Life
Projected Start Date: April 1, 2022
Projected Completion Date: June 30, 2022
Grind and Overlay of Luckett Street from S Mildred Avenue to S San Lorenzo Avenue 25 Year Useful Life
Projected Start Date: April 1, 2022
Projected Completion Date: June 30, 2022
Grind and Overlay of Seventh Street from Bassett Street to Division Street 25 Year Useful Life
Projected Start Date: April 1, 2022
Projected Completion Date: June 30, 2022
Grind and Overlay of South San Lorenzo Avenue from Pearl Street to Division Street 25 Year Useful Life
Projected Start Date: April 1, 2022
Projected Completion Date: June 30, 2022
This resolution was passed and adopted this 24
th day of May, 2022 by the following vote:
AYES, Council Members:
NAYS, Council Members:
ABSENT, Council Members:
ABSTAIN, Council Members:
APPROVED:
______________________________
Mike LeBarre, Mayor
ATTEST:
__________________________________
Steven Adams, City Clerk
APPROVED AS TO FORM:
__________________________________
Roy Santos, City Attorney
Item No. 9(H)
REPORT TO THE CITY COUNCIL
DATE: MAY 24, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: ANDREA WASSON, RECREATION COORDINATOR
RE: CONSIDERATION OF APPROPRIATION FOR A NEW SLIDE
POOL PUMP
RECOMMENDATION:
It is recommended the City Council appropriate $15,000 for a new slide pump.
BACKGROUND:
The King City Pools slide pump is not working sufficiently to clean the pool water and needs immediate replacement in order to open the slide pool for use.
DISCUSSION:
The slide pool pump was installed in 1995 and is not working well. Without purchasing a new pump, the turnover rate will be insufficient to clean the water properly and the City will not pass inspection from the Health Department.
Therefore, the City will not be allowed to operate the pool until it is replaced, which could potentially delay opening this summer. The slide pool is the busiest pool and is used for pool parties, recreation swim, swimming lessons and water aerobics.
As a result, staff has ordered the replacement parts in order to minimize the delay as much. However, since it exceeds the budget, it will require approval of a supplemental appropriation from the City Council.
COST ANALYSIS:
The funding for the appropriation will all be paid from revenues from the General Fund. There is currently $4,000 left in the equipment and repair and maintenance budget this year. This action will increase the budget to $19,000 for FY 2021-22.
Item No. 9(I)
REPORT TO THE CITY COUNCIL
DATE: MAY 24, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL
OF THE CITY OF KING MAKING FINDINGS RELATED TO THE
CONTINUED EXISTENCE OF A STATE OF EMERGENCY DUE
TO COVID-19 AND RE-AUTHORIZING THE CONDUCT OF
PUBLIC MEETINGS OF THE LEGISLATIVE BODIES OF THE
CITY VIA REMOTE TELECONFERENCING FOR AN INITIAL 30-
DAY PERIOD PURSUANT TO THE RALPH M. BROWN ACT AS
AMENDED BY ASSEMBLY BILL NO. 361
RECOMMENDATION:
It is recommended the City Council adopt a Resolution making findings related to the continued existence of a State of Emergency due to COVID-19 and reauthorizing the conduct of public meetings of the legislative bodies of the city via remote teleconferencing for an initial 30-day period pursuant to the Ralph M.
Brown act as amended by AB 361.
BACKGROUND:
Starting March 2020, the Governor of California declared a State of Emergency to make additional resources available, formalize emergency actions already underway, and help the state prepare for broader spread of the coronavirus (COVID-19). On March 13, 2020, the President declared a National State of Emergency. As a result, on March 16, 2020, the City Manager signed a Proclamation of Local Emergency in King City, which was ratified by the City Council on March 20, 2020.
In March 2020, in response to the spread of COVID-19 in the County of in the County of Monterey, the County proclaimed a state of local emergency for the County of Monterey and thereafter issued orders from the County of Monterey Health Officer aimed at containing COVID-19.
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KING MAKING FINDINGS RELATED TO THE CONTINUED EXISTENCE OF A STATE OF EMERGENCY DUE TO COVID-19 AND RE-AUTHORIZING
THE CONDUCT OF PUBLIC MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY VIA REMOTE TELECONFERENCING FOR AN INITIAL 30-DAY PERIOD PURSUANT TO THE RALPH M. BROWN ACT AS AMENDED BY ASSEMBLY BILL NO. 361
MAY 24, 2022
PAGE 2 OF 4
On March 20, 2020, the City Council adopted Resolution No. 2020-4753 declaring and proclaiming the existence of a local emergency in the City in response to COVID-19.
The Governor subsequently issued a number of executive orders aimed at promoting social distancing to reduce the spread of COVID-19. The Orders included suspending the following requirements of the Ralph M. Brown Act governing how public meetings are conducted:
• the requirement that local agencies provide notice of each teleconference location from which a member of the legislative body will be participating in a public meeting;
• the requirement that each teleconference location be accessible to the public;
• the requirement that members of the public be able to address the legislative body at each teleconference conference location; • the requirement that local agencies post agendas at all teleconference locations; and
• the requirement that at least a quorum of the members of the local body participate from locations within the boundaries of the territory over which the local body exercises jurisdiction.
The legislative bodies conducted many of their meetings via remote teleconferencing consistent with the declaration of local emergency and executive orders issued by the Governor during the shutdown. Equipment was then installed in the Council Chambers that provides the added capability of hybrid simultaneous in-person and virtual meetings.
When the Order expired, State legislation was adopted that extended the ability to meet remotely under specified circumstances. When that expired, the City temporarily discontinued the ability of elected officials and board members to participate in meetings remotely. Additional State legislation has been proposed and is under consideration. In the meantime, the Governor’s declared State of Emergency remains in effect. This, along with the CDC and County Health Officer’s guidelines, provides the City Council the ability to make the findings necessary to continue to participate in meetings virtually.
CITY COUNCIL
CONSIDERATION OF A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF KING MAKING FINDINGS RELATED TO THE CONTINUED EXISTENCE OF A STATE OF EMERGENCY DUE TO COVID-19 AND RE-AUTHORIZING
THE CONDUCT OF PUBLIC MEETINGS OF THE LEGISLATIVE BODIES OF THE CITY VIA REMOTE TELECONFERENCING FOR AN INITIAL 30-DAY PERIOD PURSUANT TO THE RALPH M. BROWN ACT AS AMENDED BY ASSEMBLY BILL NO. 361
MAY 24, 2022
PAGE 3 OF 4
DISCUSSION:
Provisions regarding the ability of Council, Board and Commission members participating in meetings remotely remain the same, which include the following:
• In each instance in which notice of the time of the teleconferenced meeting is given or the agenda for the meeting is posted, the legislative body shall also give notice of the manner by which members of the public may access the meeting and offer public comment;
• The agenda shall identify and include an opportunity for all persons to attend via a call-in option or an internet-based service option; • The legislative body shall allow members of the public to access the meeting, and the agenda shall include an opportunity for members of the public to address the legislative body directly;
• In the event of a disruption which prevents the local agency from broadcasting the meeting to members of the public using the call-in option or internet-based service option, or in the event of a disruption within the local agency’s control which prevents members of the public from offering public comments using the call-in option or internet-based service option, the legislative body shall take no further action on items appearing on the meeting agenda until public access to the meeting via the call-in option or internet-based service option is restored; and
• Written/remote public comment must be accepted until the point at which the public comment period is formally closed; registration/sign-up to provide/be recognized to provide public comment can only be closed when the public comment period is formally closed.
A number of circumstances could involve the need for virtual attendance, such as the following:
• If a member is exposed to COVID-19 and choses to participate virtually in order to limit the risk of exposing others;
Item No. 11 (A)
REPORT TO THE CITY COUNCIL
DATE: MAY 24, 2022
TO: CITY COUNCIL
FROM: STEVEN ADAMS, CITY MANAGER
RE: CONSIDERATION OF KING CITY COMMUNITY POWER
OPERATIONAL AGREEMENT AND RATE SETTING UPDATE
RECOMMENDATION:
It is recommended the City Council approve staff’s recommendations regarding future steps involving operation and customer rate setting of King City Community Power (KCCP).
BACKGROUND:
The City launched its KCCP Community Choice Aggregation (CCA) program on July 2, 2018. The program has been successful in achieving the initial goals of providing lower rates, no-cost solar for low-income households, the addition of solar street and park lights, and increased use of clean energy. It has also provided annual payments to cover City costs in the range of $30,000 to $90,000 on an annual basis.
The City entered into an agreement with Pilot Power Group (Pilot), Inc. on December 12, 2017 to operate KCCP. The agreement is due to expire on December 31, 2023. Under terms of the agreement, if an extension has not been reached by December 31, 2021, Pilot may commence negotiations on a new agreement, automatically extend the agreement one year, or begin the process of transferring KCCP to another provider or back to PG&E. If a new agreement is not entered into by June 30, 2022, they have the ability to select either of the latter two options.
Pilot submitted its request to commence negotiations in December 2021. A new agreement has been drafted and agreed upon, which was scheduled to be presented to City Council at the June 14th meeting and would terminate December 31, 2028. However, a number of issues have occurred over the past few weeks impacting staff’s recommendations. The purpose of this staff report is
CITY COUNCIL
CONSIDERATION OF KING CITY COMMUNITY POWER OPERATIONAL
AGREEMENT AND RATE SETTING UPDATE
MAY 24, 2022
PAGE 2 OF 3
to update Council, provide recommendations on how to proceed, and to seek Council input and direction.
DISCUSSION:
KCCP’s financial position has experienced a significant decline over the past couple years. This is attributed to three primary factors. First, the California Public Utilities Commission (CPUC) approved a substantial Power Charge Indifference Adjustment (PCIA) submitted by PG&E. PCIA is a charge to Community Choice Aggregation (CCA) customers intended to reimburse PG&E for long-term financial obligations the utility incurred on behalf of now-departed customers. As a result, KCCP was forced to lower rates more than anticipated in order to maintain overall fees lower than PG&E. Second, customer load was negatively impacted by the pandemic. Third, the war in Ukraine has dramatically increased the cost of energy.
Pilot is currently preparing rate recommendations for FY 2022-23. They have notified City staff that it will be necessary to forego any City payment from KCCP in FY 2022-23 or set rates above PG&E rates in order to avoid experiencing a negative fund balance. Other CCAs are experiencing similar issues, and Central Coast Energy is currently charging rates higher than PG&E. In addition, KCCP has undergone ownership and control changes during the past weeks.
Staff believes it is essential to maintain rates no higher than PG&E in order to maintain its customer base and credibility given the representations that were made when KCCP was formed. Given the changing circumstances, staff recommends the City and Pilot agree to the one year automatic extension prior to entering into a new long-term agreement to provide time to better determine KCCP’s ability to remain competitive with PG&E in the future. This would provide time over the next 6 month period to monitor the financial position of KCCP, develop new long-range revenue projections, gather additional information about energy markets and PCIA charges, and have time to establish a relationship with the new Pilot ownership. It is also recommended the City forego the payment from KCCP in FY 2022-23 and attempt to reinstate a reduced amount in FY 2023-24. The disadvantage of providing only a one-year extension is that it limits Pilot’s ability to hedge its power purchases in order to reduce costs.
No formal action by Council is required to approve the one-year extension since the existing agreement provides unilateral authority to Pilot for that extension if the City takes no action to terminate. The rate recommendations will be presented at the July 12th meeting, but it is recommended the Council provide direction to maintain rates no higher than equal to PG&E.
CITY COUNCIL
CONSIDERATION OF KING CITY COMMUNITY POWER OPERATIONAL
AGREEMENT AND RATE SETTING UPDATE
MAY 24, 2022
PAGE 3 OF 3
COST ANALYSIS:
The recommendations will result in a reduction of $90,000 in the FY 2022-23 budget.
ENVIRONMENTAL REVIEW:
Rates and the budget are not considered a “project” for the purposes of the California Environmental Quality Act (CEQA). Therefore, this item does 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.
ALTERNATIVES:
The following alternatives are presented for Council consideration:
1. Approve staff’s recommendations;
2. Direct staff to prepare a rate recommendation higher than PG&E in order to maintain the City’s payment;
3. Direct staff to present the new agreement expiring December 31, 2028 for consideration by the City Council at the next meeting; or
4. Provide staff other direction.
Prepared and Approved by: _____________________________________ Steven Adams, City Manager