MINUTES
MALIBU ADMINISTRATION & FINANCE SUBCOMMITTEE
SPECIAL MEETING
May 2, 2024
CITY HALL — Multipurpose Room
1:00 P.M.
CALL TO ORDER
Mayor Pro Tem Stewart callod the meeting to order at 1:03 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; Rene’e Neermann, Finance Manager; and Cynthia Alba, Executive Assistant.
REPORT ON POSTING OF AGENDA
Executive Assistant Alba reported that the agenda for the meeting was properly posted on posted on May l, 2024.
APPROVAL OF AGENDA
MOTION
ITEM 1
ITEM 2
ITEM 3
Mayor Pro Tem Stewart moved, and Councilmember Silverstein seconded a motion to approve the agenda. The question was called, and the motion carried unanimously.
PRESENTATIONS
None.
OLD BUSINESS
None.
NEW BUSINESS
Approval of Minutes — January 17, 2024 and April 10, 2024 Recommended Action: Approve the minutes for the Administration and Finance Subcommittee Special meeting of January 17, 2024 and April 10, 2024.
Malibu Administration and Finance Subcommittee
Special Meeting
Minutes of May 2, 2024
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 January l7, 2024, and April 10, 2024.
Proposed Budget for Fiscal Year 2024-25
Recommended Action: Provide a recommendation to the City Council regarding the Fiscal Year (FY) 2024-25 Proposed Budget.
Assistant City Manager Toney provided a presentation on the proposed budget. As recommended by the City Council he added items surrounding speed cameras, rental rates for facility use, Wi-Fi at the parks, and the feasibility of adding a dog park at Las Flores Park. He added that there was a previous discussion regarding a dog park and the information has been added to the agenda report. He stated that it was reviewed in 2021 and presented to the Parks and Recreation Commission and it was recommended not to move forward at the Las Flores location, vacant lands were proposed, due to ESHA limitations, parking, and size of the location.
Councilmember Silverstein inquired if any public beaches allowed dogs on the beach, and inquired if the city could pursue the possibility of designating a Malibu beach as a dog beach.
Assistant City Manager Toney stated that this has been done in other areas such as the City of Long Beach and Santa Barbara County.
City Manager McClary added that Malibu will need to inquire with both the county and the state as there are beaches owned by both jurisdictions.
Mayor Pro Tem Stewart spoke about the facility use rental rates, he stated that the marathon and triathlon are on county parking property and Malibu spends money to support this.
Finance Manager Neermann clarified that the agencies who oversee the marathon and triathlon cover the Sheriff s fees.
City Manager McClary explained that most of the impact has been on the administration side of the agreement and is unsure of the impact on the day—to—day, the'Community Services Department staff, or other staff.
Mayor Pro Tem Stewart stated that the city should aim to recover funds where possible. He added that regarding speed cameras, the flgure wouldn’t have to be specific, and an estimated allocation would suffice as a placeholder.
Assistant City Manager Toney explained that there are multiple ways of appropriating funds, either upfront or throughout the flscal year.
Malibu Administration and Finance Subcommittee
Special Meeting
Minutes of May 2, 2024
In response to Assistant City Manager Toney, Mayor Pro Tem Stewart stated that his goal is to ensure that there is an expedited process When it comes to the speed camera prOJ ect.
City Manager McClary stated that it is best to come up with a placeholder value because Senator Ben Allen's office is requesting an estimated figure for the appropriations committee.
Mayor Pro Tem Stewart recommended gathering that estimated figure based on nine cameras. He also inquired about the funding process for funding projects that may come out of surveys.
Finance Manager Neermann explained that this could also be funded while the request for proposals and contracts are being finalized.
Councilmember Silverstein inquired about Los Angeles County Sheriff and California Highway Patrol coverage overnight between 10 pm to 5 am.
City Manager McClary stated that nighttime coverage is sparse in comparison to daytime coverage.
Councilmember Silverstein recommended allocating resources for nighttime coverage to patrol nighttime speeding.
City Manager McClary recommended meeting with Captain Seetoo to harther discuss resource allocation and any challenges they may have. He stated that CHP is also limited to assignments.
Mayor Pro Tem Stewart said that patrol assignments are based on availability and should be accepting the help they can get. He highlighted an issue of overtime versus dedicated officers and added that the officers are doing the best they can. He explained that a discussion with Captain Seetoo would be beneficial. He also stated that there would be a second request to use funds for the Malibu Education Fund and inquired if a line item should be added at that time.
Assistant City Manager Toney stated that the Administration and Finance Subcommittee can make a recommendation to the City Council to set aside funds to be included as a line item in the budget as an appropriation, however, they would still need to submit a request for those funds.
Councilmember Silverstein recommended that they make a formal request first before any funds get allocated.
Assistant City Manager Toney continued his presentation and explained that there are currently Prop A funds totaling about $1.1 million. He stated that these funds are limited to transportation services and if they are left unused, they are lost. He Malibu Administration and Finance Subcommittee
Special Meeting
Minutes 0f May 2, 2024
added that another city is interested in purchasing those funds for a discount. He explained that transportation services in the city are limited and include items such as Dial a Ride.
Councilmember Silverstein posed several questions to staff.
Finance Manager Neermann stated that this was most recently done in 2019. She added that Prop A funds are distributed to the city each year and selling the funds at a discount this year will not impact future year’s funds. She added that these funds have very specific uses such as building a bus stop and explained that it cannot be used for parking-related items.
Councilmember Silverstein asked if the funds could be used for school transportation for kids.
City Manager McClary stated that spending the money will require staff time to complete the proj ects.
Mayor Pro Tem Stewart stated that the funds were to be used or lost and inquired if the discount was market rate.
Finance Manager Neermann stated that only one city was interested in purchasing those funds for a discount.
Councilmember Silverstein agreed that he would be okay with selling the funds this year as long as the funds returned are general funds and future Prop A funds are not impacted by this transaction.
Assistant City Manager Toney explained that this current year’s transaction can be executed at the City Manager level. He explained that there are multiple reasons to increase the CIP budget; one of those being the permanent skatepark, which was originally estimated at $1.1 million and is now estimated closer‘to $2.5 million within the next fiscal year.
City Manager McClary added that there were prior discussions at the Parks and Recreation Commission regarding fundraising or sponsorship opportunities and discussions were shifted towards the city funding this project.
Mayor Pro Tem Stewart recommended having further discussions regarding naming rights at the City Council level.
Assistant City Manager Toney stated that a public hearing will be held on May 28th and the budget is scheduled to be adopted at the end of June. He reviewed the status of revenues and expenditures and added that they are structurally balanced for the most part. He continued with his presentation to introduce proposed staffing changes including several new positions, a 3.4% cost of living adjustment, and Malibu Administration and Finance Subcommittee
Special MeetingMinutes of May 2, 2024
completion of the classification and compensation study. He continued to review each department's budget changes. He also touched on the Baker Tilly report and reported that they have made headway on culture and retention and are still making improvements across all 46 recommendations. He added that three main recommendations included establishing a Community Development Department; it was recommended to add a placeholder for a Community Development Director.
He explained that most cities do not have separate Planning and Building Departments. He stated that this would need to be researched further and returned to the City Council with the options and analysis, and this would be a placeholder for a position for future leeway.
City Manager McClary stated that the most modem option is to have a unified department, as he has not seen many cities lead towards separating departments.
Councilmember Silverstein inquired ifthe Baker Tilly Report was a receive and file only.
Assistant City Manager Toney explained that the findings were presented to the City Council for feedback, and provided to the City Manager for implementation.
He added that there were both short-term and long-term solutions.
Mayor Pro Tem Stewart recommended that an item be brought to the City Council to provide a progress report on implementation.
Councilmember Silverstein commended staff for the great budget presentation at the last City Council meeting. He inquired about the Sheriffs Department allocations.
Assistant City Manager Toney explained at a high level how the services are allocated and explained that it would be more expensive to have a Police Department or Fire Department.
Mayor Pro Tem Stewart, requested more details when it came to the pie charts for example Management Administration Services Department to include information on IT, Human Resources, or Media.
Assistant City Manager Toney shared that a further breakdown of divisions can be found on page 11 of the budget and that additional slides can be added to the presentation.
Mayor Pro Tem Stewart stated that he would leave that decision up to staff but would like to see further breakdowns to ensure confidence in incoming income; including confidence levels.
Malibu Administration and Finance Subcommittee
Special Meeting
Minutes of May 2, 2024
ATTEST:
ADJOURNMENT
At 2:30 p.m., Mayor Pro Tem Stewart adjourned the meeting.
Approved and adopted by the Administration and Finance
Subcommittee of the City of u on May 30, 2024.
DOUG WART, Mayor Pro Tem
' /%.
Cynthi%lba, Executive Assistant
City Manager McClary stated that although currently, the city is on an upward trend, those assumptions cannot be made each year.
Assistant City Manager Toney stated that property taxes swing but historically they have been at six percent. He added that inelasticity was the reason why most organizations such as schools are based on property taxes. He added that hotel and private have leveled off within the past two years, between 9 10 million.
Mayor Pro Tem Stewart inquired if there was a process to track TOT payments to ensure full compliance.
Finance Manager Neermann stated that the city is doing everything possible and has a consultant who scans websites and spot-checks individual locations to ensure compliance.
Assistant City Manager Toney explained that when the budget was developed, the department was going off the current year quarter two for the estimates. He stated that the fmance team will be going back to those estimates for revenue and expenses.
City Manager McClary stated that as a follow-up to the budget workshop he has tasked the Community Services Department to draft a policy on city land and facility rentals.
Councilmember Silverstein encouraged staff to have different rates for non-profit agenc1es.
MOTION Councilmember Silverstein moved, and Mayor Pro Tem Stewart seconded a motion to recommend to the City Council to adopt recommendations of staff subject to feedback.