MINUTES
MALIBU ADMINISTRATION & FINANCE SUBCOMMITTEE
SPECIAL MEETING
JANUARY 17, 2024
CITY HALL — SURFRIDER ROOM
1:00 P.M.
CALL TO ORDER
Mayor Pro Tem Stewart called the meeting to order at 1:00 pm.
ROLL CALL
The following persons were recorded in attendance:
PRESENT: Mayor Pro Tem Doug Stewart and Councilmember Bruce Silverstein ALSO PRESENT: Steve McClary, City Manager; Joseph Toney, Assistant City Manager; Alexis Brown, Deputy City Manager; Rene'e Neermann, Finance Manager; Cynthia Alba, Executive Assistant; and Kathleen Stecko, Deputy City Clerk.
REPORT ON POSTING OF AGENDA
Deputy City Clerk Stecko reported that the agenda for the meeting was properly posted on posted on January 12, 2024.
APPROVAL OF AGENDA
MOTION Councilmember Silverstein moved, and Mayor Pro Tem Stewart seconded a motion to approve the agenda. The question was called, and the motion carried unanimously.
ITEM 1 PRESENTATIONS
None.
ITEM 2 OLD BUSINESS
None.
ITEM 3 NEW BUSINESS
A. Approval of Minutes
Recommended Action: Approve the minutes for the Administration and Finance Subcommittee Special meetings ofNovember 6, 2023 and December 18, 2023.
MOTION Councilmember Silverstein moved, and Mayor Pro Tem Stewart seconded a motion to approve the minutes for the Administration and Finance Subcommittee Special meetings of November 6, 2023 and December 18, 2023.
Malibu Administration and Finance Subcommittee
Special Meeting
Minutes of January 17, 2024
Funding for CitV Owned Vacant Lot Outreach & Education
Recommended Action: Provide a recommendation to the City Council on the appropriation of an additional $55,000 from the General Fund Undesignated Reserve for City—Owned Vacant Lot Outreach and Education.
Deputy City Manager Brown presented the agenda report requesting an additional $55,000 from the General Fund for City Owned Vacant Lot Outreach and Education.
Mayor Pro Tem Doug Stewart requested additional information on feedback and information on what the $55,000 would be allocated for. He also asked for an estimated start timeline.
Deputy City Manager Brown explained that they received nine proposals and narrowed them down to 4 proposals. To lead the project properly, they sought the time and materials needed to reach as many people as possible. She added that with the reconnnended proposal, they would be getting a staff of 11 project managers, passive outreach, and intentional dialogue, along with forming focus groups. She stated that contingent on council approval, they would be looking at an immediate start with a first deliverable within 6—8 months of the launch date.
Mayor Pro Tem Doug Stewart inquired regarding the annual budget procedure and how this allocation would be included in the process. He asked about placing a hold on the budget.
City Manager McClary stated that the outcomes would drive the next steps but shared that there are several ways to move forward. He added that the city would not be in a situation where they are unable to spend funds on the proj ect.
Deputy City Manager Brown stated that funds would be ready for project design and retaining a firm.
Councilmember Silverstein inquired about having meetings recorded.
City Manager McClary stated that if the city were to have live streamed meetings, there would be an added technical and labor component requiring council discussion. He said that individual members are also allowed to record meetings.
Councilmember Silverstein explained that he would like to have meetings recorded and posted on the website after the meeting rather than necessarily requesting hybrid meetings. He also inquired for more information regarding the different outreach tactics and asked if the City Council would get to set some parameters, such as how to conduct surveys.
Malibu Administration and Finance Subcommittee
Special Meeting
Minutes of January 17, 2024
MOTION
Mayor Pro Tem Doug Stewart requested that this item be brought back as an open discussion item.
Councilmember Silverstein stated that he would like to see thorough outreach to ensure that the community is aware of these efforts.
Assistant City Manager Toney explained that this decision would be to appropriate the funds, and the tactics and discussion around policy will be held at the City Council level.
Councilmember Silverstein stated that he would like to understand more about the proposal and its strategies. He said that he would like to see a comparison of the proposals submitted.
City Manager McClary inquired from Deputy City Manager Brown for more information regarding the customization of the outreach efforts by the recommended proposal.
Deputy City Manager Brown stated that the firm being recommended had designed an approach that collaborates with the City Council. The firm would be meeting with the City Council one-on-one before the first deliverable. She explained that this recommended firm is creating a much more comprehensive plan than the others.
Mayor Pro Tem Doug Stewart added that he would also like to see the RFP and a staff analysis of the top proposals.
Councilmember Silverstein agreed that they are relying on staff expertise to create an analysis; however, he added that he would like to see more information about how a decision was made, including pros and cons amongst alternatives. He also added that regarding the Road Race Agreement, he believed it would be a better process if they had additional analysis on RFP comparison.
Mayor Pro Tem Doug Stewart moved, Councilmember Silverstein seconded a motion to approve providing a recommendation to the City Council on appropriation of an additional $55,000 from the General Fund Undesignated Reserve for City Owned Vacant Lot Outreach and Education subject to a more thorough discussion at the City Council level with an explanation of the top 3—4 proposals. The question was called, and the motion carried unanimously.
FY 2022-23 Fourth Quarter Financial Report
Recommended Action: Review FY 2022-23 Fourth Quarter financial information.
Assistant City Manager Toney presented the agenda report and thanked Finance Manager Rene’e Neermann for her hard work. He stated that the team is working on catching up on year—end items. He noted that the revenues came close to the Malibu Administration and Finance Subcommittee
Special Meeting
Minutes of January 17, 2024
projections. He explained that utility users” taxes fluctuated. He added that TOT and sales tax are positive. He stated that the general fund was at $55 million in revenue, Where they had forecasted $54.5 milliOn. He also added that expenditures are lower due to several vacancies in the city; he added that they ended the year with 14 vacancies. As of June 30, 2023, the budget General Fund Undesignated Reserve is $70.30 million; this will be approximately 120.9% of the $58.17 million FY 2023-24 operating budget and will exceed the 65% targeted reserve amount. He stated that there were significant savings that fell to the bottom line. He noted that the total general fund balance had a $ l 3 million increase, and the undesignated fund had an increase of approximately $14 million, leaving the total of $56.5 million to $70.3 million, with more revenues than expenditures.
Councilmember Silverstein requested clarification regarding the undesignated reserve fund, and he inquired if the increase of $14 million came from another fund that was unused.
Assistant City Manager Toney stated that the information would be easier to understand in the following report; however, he added that the bottom line ' increased. He said that they are trying to do a better job at making the designated and undesignated reserve funds easier to understand.
Mayor Pro Tem Stewart inquired about the status of service charges.
Assistant City Manager Toney stated they were in the middle of a fee study. He added that they currently have a placeholder to account for inflation and come back later to adj ust the fee schedule based on those study results.
The report was received and filed.
FY 2023-24 First Quarter Financial Report
Recommended Action: Review FY 2023-24 First Quarter financial information.
Assistant City Manager Toney presented the agenda report; he explained that quarter one would not lead to proj ections yet due to early timing.
Councilmember Silverstein stated that there may be a formula that allows the city to compare quarters to previous years to allow for average comparisons.
Mayor Pro Tem Doug Stewart agreed and added that they may be able to compare trendlines.
Assistant City Manager Toney shared that there are different ways to look at projections and forecasting. He added that history is not an indicator of the future, but it is helpful to see.
Malibu Administration and Finance Subcommittee
Special Meeting
Minutes of January 17, 2024
City Manager McClary added that there are seasonal expenses and revenues.
The report was received and filed.
FY 2023-24 Second Quarter Financial Report and Mid-Year Budget Amendments Recommended Action: 1) Review Fiscal Year 2023-24 Second Quarter Financial Report; 2) Provide a recommendation to the City Council regarding Fiscal Year 2023-24 mid-year budget amendments; 3) Provide a recommendation to the City Council on adopting revised Authorized Positions and Salary Ranges for Fiscal Year 2023-24.
Assistant City Manager Toney reviewed the agenda report. He stated that through the second quarter, they received $25.7 million and said that projections are at $84 million. He reviewed expenditures and revenues and their comparisons to last year. In general, he stated that they are in line with proj ections.
Councilmember Silverstein inquired about property tax procedures.
Assistant City Manager Toney stated that the funds go directly to the county first and is unsure whether those funds are invested.
City Manager McClary stated that the county is not a business and cannot appropriate that money anywhere other than the taxing agencies and added that whether the funds are invested is a good question.
Assistant City Manager Toney continued his presentation and stated that private rental revenues were very close to the same point last year. He added that sales tax revenue is expected to be higher than initially budgeted.
Councilmember Silverstein inquired Whether the city could tax long-term rentals.
Assistant City Manager Toney added that it would fall under income taxes and would not entail an additional tax because no permit is associated with it. He stated that this had been asked in the past and would follow up for more information. He continued with his presentation and noted that revenue proj ections for the general fund are trending positive. He explained that expenditures are at the level due to 22 vacancies and that the city is working on recruitment and retention efforts. He also added that there are additional expected savings within the Public Safety Department. He said that Community Services is trending low in expenditures and expects higher spending in the springtime. He added that there are $1.1 million in general fund amendments; the bulk is Public Works street maintenance and includes benefits for permanent part—time Community Services staff. He also reviewed the difference between ongoing and one-time expenses.
Councilmember Silverstein recommended adding details regarding unused funds that may look like savings versus an increase in revenue.
Malibu Administration and Finance Subcommittee
Special Meeting
Minutes of January 17, 2024
Assistant City Manager Toney shared that the goal is to have 5—year forecasts with those details added. He added that there is a correction in the report, the Fiscal Impact section states the Undesignated Reserve will be approximately 121 .5% but the number should be closer to 117.5% in undesignated reserve.
Mayor Pro Tem Stewart inquired regarding the Malibu Cities grant program.
Deputy City Manager Brown stated that the city just applied for a CalOES grant related to PCH safety; however, added that there are additional opportunities for future grants.
Assistant City Manager Toney stated that the city ended with $550,000 in grant proceeds last year. '
MOTION Councilmember Silverstein moved, and Mayor Pro Tem Stewart seconded a motion to: 1) Provide a recommendation to the City Council regarding Fiscal Year 2023- 24 mid-year budget amendments; 2) Provide a recommendation to the City Council on adopting revised Authorized Positions and Salary Ranges for Fiscal Year 2023-
24. The question was called, and the motion carried unanimously.
ADJOURNMENT
At 2: 11 p.m., Mayor Pro Tem Stewart adjoumed the meeting.
Approved and adopted by the Administration and Finance
Subcommittee of the City of Malibu on May 2, 2024.
Dé% OUG EWART, Mayor Pro Tem
ATTEST:
C
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HIA ALBA, Executive Assistant