AGENDA
Pismo Beach City Council
Pismo Beach Public Financing Agency
Tuesday, May 7, 2024
Time Meeting Type Physical Location Virtual Viewing Option 5:30 p.m. Regular Meeting 1 2 Council Chamber,
City Hall https://us02web.zoom.us/j/84823715585
Immediately Following
Regular Meeting Closed Session City Hall None
1 Live virtual viewing is offered via Zoom.
2 Broadcast meeting also available for viewing on cable Channel 20 and online at pismobeach.org/agenda.
0.HYBRID MEETING INSTRUCTIONS:
These meetings are being conducted in a hybrid format with both in-person and virtual options. Ways to watch these meetings and submit public comment are provided below.
Watch and participate in person:
•Regular Meeting: Visit the Council Chamber at City Hall, 760 Mattie Road, Pismo Beach, CA 93449. •To make Regular Meeting public comment, please submit an optional blue “speaker slip” to staff; the Mayor will ask you to approach the lectern to speak during the public comment period on your item of interest. •To make Closed Session public comment, please be present in the Council Chamber at the start of Closed Session; the Mayor will call for public comment prior to commencing the closed proceedings.
Watch via Zoom:
•Regular Meeting only: Click this link on any computer or mobile device:
https://us02web.zoom.us/j/84823715585 . This URL may also be typed into a web browser.
Listen via telephone:
•Regular Meeting only: Call 1-669-900-6833 to join by telephone audio only. Enter Meeting ID 848 2371 5585 when prompted.
Watch online:
•Regular Meeting only: Visit www.pismobeach.org/agenda and scroll to “Upcoming Events.” When the live broadcast begins, an “In Progress” link will appear; click this link to watch the livestream. A recording of the meeting will be available on demand shortly after the meeting ends.
Watch on Channel 20:
•Regular Meeting only: Tune to local cable channel 20 in Pismo Beach; the meeting will be broadcast live.
Meetings are also replayed at 9:00 a.m., 6:00 p.m., and 1:00 a.m. each day the following week.
Submit written comment prior to, or during, the meeting:
•Regular Meeting and Closed Session: In advance of the meeting, written comments may be emailed to [email protected] or mailed or delivered to the City Clerk’s Office, 760 Mattie Road, Pismo Beach, CA 93449. During the Regular Meeting no later than the start of the comment period for your item of interest, written comment may be hand-delivered to staff in the Council Chamber. Emails submitted after the start of the meeting may not be fully considered prior to any action taken on the item.
Submit voicemail comment:
•Regular Meeting and Closed Session: Call 805-773-7005 and leave a voicemail before the meeting.
Voicemails submitted after the start of the meeting may not be fully considered prior to any action taken on the item. This automated voicemail line will not be answered or monitored for other purposes.
Please note:
•In the event a Council Member participates in this meeting by teleconference under the provisions of Government Code Section 54953(f), public comment will be accepted via Zoom, including by telephone audio, as required by law. However, the timing of a request by a Council Member to participate remotely may not allow sufficient time to post an agenda containing information on how the public may participate via Zoom or telephone. In such instances, the City Clerk or another staff member will orally provide such information at the meeting.
•Meetings may begin a few minutes after the scheduled start time. •Meetings will be recorded, except closed sessions; these recordings are public record. •Phone numbers of call-in attendees may be visible to other meeting attendees, or in meeting recordings. •Phone numbers of voicemail commenters may be visible in the public record along with transcripts.
Please contact City Clerk Erica Inderlied at [email protected] with questions.
Pismo Beach City Council Agenda May 7, 2024
Regular Meeting—5:30 p.m.
Council Chamber, City Hall, 760 Mattie Road, Pismo Beach, CA 93449
CALL TO ORDER: Mayor Waage
1. ROLL CALL:
Mayor: Waage
Mayor Pro Tem: Reiss
Council Members: Guthrie, Inman, Newton
2. PLEDGE OF ALLEGIANCE
3. ACCEPTANCE OF AGENDA
4. PRESENTATIONS
Item 4.A: Proclamation: Recognizing May 2024 as National Foster Care Month (San Luis Obispo County Department of Social Services)
5. PUBLIC COMMENT PERIOD
At this time, members of the public may comment on any item NOT appearing on the agenda. For items appearing on the agenda, including the Consent Calendar, the public will be invited to make comments during Council consideration of the item. In accordance with state law, matters raised as part of this comment period cannot be discussed or acted upon by the City Council at this time.
However, in response to a matter raised as part of this comment period, the Council may, during Item 13, City Council Comments and Requests, direct staff to assist a speaker, or schedule the matter for consideration on a future agenda.
Please adhere to the following procedures when addressing the Council:
• Please limit your comments to 3 minutes or less.
• Unduly disruptive behavior will not be permitted.
Documents submitted to the Council become public record unless otherwise exempt from disclosure.
6. CITY MANAGER’S REPORT - No action to be taken
7. CITY ATTORNEY’S REPORT / CLOSED SESSION REPORT - No action to be taken
8. COUNCIL COMMITTEE REPORTS
1. Air Pollution Control District, SLO County (Newton/Reiss)
2. California Joint Powers Insurance Authority (Reiss)
3. CAPSLO (Reiss)
4. Central Coast Blue Regional Recycled Water Authority (Waage)
5. Central Coast Community Energy Policy Board (Mayor)
6. Chapman Estate Foundation (Liaison) (Reiss)
7. Coastal Cities Group, League of CA Cities (Waage)
8. Conference and Visitors Bureau / LBID Board (Liaison) (Inman)
9. Friends of Price House Liaison (Waage)
10. Hazard Mitigation & Fire Safety (Inman/Waage)
11. Homeless Services Oversight Council (Guthrie/Reiss)
12. Integrated Waste Management Authority (Newton/Inman)
13. Mobile Home Rent Stabilization Subcommittee (Inman/Reiss)
14. REACH (Newton)
15. Regional Transit Authority, SLO (Waage/Reiss)
16. Shell Beach Improvement Group Liaison (Inman)
17. SLOCOG (Waage/Reiss)
18. South County Chambers Gov’t Affairs (Guthrie/Inman)
19. Visit SLO CAL Advisory Committee (Inman)
20. Water Resources Advisory Committee, SLO (Guthrie/Inman)
21. Zone 3 Water Advisory Committee, SLO (Guthrie/Inman) (Govt Code Section 53232.3)
Pismo Beach City Council Agenda May 7, 2024
9.CONSENT CALENDAR
All Consent Calendar items will be acted upon by a single action of the City Council unless otherwise requested by an individual Council Member for separate consideration. Public comment on Consent Calendar items will be invited prior to action on the Calendar.
Item 9.A: Adoption of Meeting Minutes (Inderlied)
Recommendation:
Adopt Minutes of the April 16, 2024 Closed and Regular Meeting.
Item 9.B: Payroll Register and Register of Demands (Feeser) Recommendation:
1.Approve the Summary of Payroll Register for April 7, 2024 and April 21, 2024;
2.Approve the Register of Demands for April 5, 2024 and April 12, 2024.
Item 9.C: Monthly Investment Transaction Report of the City’s Cash and Investments for March 2024 of Fiscal Year 2024 (Feeser) Recommendation:
No action recommended; for information only.
Item 9.D: Fiscal Year 2024 Third Quarter Financial Status Report (Feeser) Recommendation:
No action recommended; for information only.
Item 9.E: Quarterly Investment Report for the Three Months of January through March 2024 – the Third Quarter of Fiscal Year (FY) 2024 (Feeser) Recommendation:
No action recommended; for information only.
Item 9.F: Approval of the 2022 Paving Project for Proposed Fiscal Year 2025 Road Maintenance and Rehabilitation Account Funding (SB 1); Making a Determination of Exemption under the Environmental Quality Act (Feeser)
Recommendation:
Adopt a Resolution approving the 2022 Paving Project for proposed Senate Bill 1 Road Maintenance and Rehabilitation Account funding for Fiscal Year 2025 and making a Determination of Exemption under the California Environmental Quality Act.
10.ITEMS PULLED FROM CONSENT CALENDAR
Pismo Beach City Council Agenda May 7, 2024
11. PUBLIC HEARINGS - No earlier than 6:00 p.m.
GENERAL PROCEDURES FOR PUBLIC HEARINGS (Mayor/Presiding Officer reserves discretion to set speaking allowances):
1. City staff will present the staff report and recommendation, and respond to technical/clarifying questions from Council;
2. Mayor will open the public hearing, and invite the project applicant, or representative, to present the project (Limited to 10 mins);
3. In an Appeal Hearing, the Mayor will then invite the appellant, or representative, to present their appeal (Limited to 10 mins);
4. Mayor will then ask other interested persons to testify regarding the project (Limited to 3 mins per speaker);
5. Mayor will invite the project applicant, or representative, to make a rebuttal if desired (Limited to 5 mins);
6. In an Appeal Hearing, the Mayor will then invite the appellant, or representative, to make a rebuttal if desired (Limited to 5 mins);
7. Mayor will close the public hearing, following which the Council will deliberate and act on the matter.
Item 11.A: City of Pismo Beach and Pismo Beach Public Financing Agency Authorization for Issuance of 2024 Lease Revenue Bonds to Finance the Public Safety Facility Project (Feeser)
Recommendation:
1. Adopt a Resolution of the City Council of the City of Pismo Beach making required findings authorizing the execution and delivery of documents relating to the sale and issuance of not to exceed $48,500,000 Pismo Beach Public Financing Agency Series 2024A Lease Revenue Bonds (Public Safety Facility Project) to finance construction of a Public Safety Facility Project and authorizing and directing certain actions in connection therewith;
and
2. Adopt a Resolution of the Pismo Beach Public Financing Agency approving the execution and delivery of documents in connection with the sale and issuance of the Pismo Beach Public Financing Agency Series 2024A Lease Revenue Bonds (Public Safety Facility Project) in a principal amount not to exceed $48,500,000 and authorizing and directing certain actions in connection therewith.
12. BUSINESS ITEMS - May be reordered and heard prior to Public Hearings
Item 12.A: SLOCOG Regional Safety Action Plan—Road to Zero (James)
Recommendation:
Receive a presentation from SLOCOG on the Regional Safety Action Plan.
Item 12.B: Residential Sidewalk Policy (Fine)
Recommendation:
Provide staff direction and clarification on a residential sidewalk policy.
13. CITY COUNCIL COMMENTS AND REQUESTS - No action to be taken
14. ADJOURNMENT
Meeting Time Date Location
Closed Session Immediately
following Tuesday, May 7, 2024 Council Chamber, City Hall
Pismo Beach City Council Agenda May 7, 2024
Special Closed Session—Immediately Following Regular Meeting City Hall, 760 Mattie Road, Pismo Beach, CA 93449
CALL TO ORDER: Mayor Waage
1.ROLL CALL:
Mayor: Waage
Mayor Pro Tem: Reiss
Council Members: Guthrie, Inman, Newton
2.ANNOUNCEMENT OF CLOSED SESSION ITEM(S) – Council Chamber Item 2.A: Conference with Legal Counsel – Existing Litigation (Paragraph (1) of subdivision (d) of Government Code §54956.9) Name of Case: V. Lopez Jr. & Sons General Engineering Contractors, Inc. vs. City of Pismo Beach
San Luis Obispo Superior Court Case No. 20CV-0652
3.PUBLIC COMMENT PERIOD – Council Chamber
At this time, members of the public may comment on any item appearing on the agenda.
Please adhere to the following procedures when addressing the Council:
•Please limit your comments to 3 minutes or less.
•Unduly disruptive behavior will not be permitted.
Documents submitted to the Council become public record unless otherwise exempt from disclosure.
4.CLOSED SESSION – Closed Meeting Room
The City Council will convene in Closed Session to discuss the items listed under Item 2 above. In accordance with the Brown Act, public access is not permitted for this portion of the meeting.
5.CLOSED SESSION REPORT – Council Chamber
If a regular meeting immediately follows this Closed Session, the Closed Session Report will be made during the regular meeting.
6.ADJOURNMENT
To the following meeting(s). Special and Closed Session times may be subject to change, as noticed. Meetings will be held in a hybrid in-person / virtual format unless otherwise noted:
Meeting Time Date Location
Regular Meeting 5:30 p.m. Tuesday, May 21, 2024 Council Chamber, City Hall Regular Council meetings will adjourn by 11:00 p.m. unless four-fifths of the Council votes to continue past that time. If the meeting is adjourned at 11:00 p.m., any remaining agenda items will be continued to the next regular meeting (R-97-04).
AFFIDAVIT OF POSTING
I, Erica Inderlied, City Clerk for the City of Pismo Beach, declare under penalty of perjury that the foregoing agenda for the May 7, 2024 meeting(s) of the Pismo Beach City Council was posted on May 2, 2024, at City Hall, located at 760 Mattie Road, Pismo Beach, CA, as well as on the City’s website.
Erica Inderlied, City Clerk
Pismo Beach City Council Agenda May 7, 2024
Meeting Schedule: The City Council of Pismo Beach regularly meets on the first and third Tuesdays of each month at 5:30 p.m., unless otherwise noticed. Closed and Special sessions will be duly noticed as needed.
Council Agendas: Agendas for Regular Meetings are available for public review on the City’s website at pismobeach.org/agenda and upon request from the City Clerk’s Office, typically by 4:00 p.m. on the Thursday prior to the meeting, but no later than 72 hours prior to the meeting. Agendas for Closed Sessions and other Special meetings are made available at least 72 hours prior to the meeting when possible, but no later than 24 hours prior to the meeting.
Related Materials: All materials submitted to the Council relating to items on this agenda are open for public inspection unless otherwise exempt by law. Staff reports and attachments published as part of this agenda packet, as well as copies of correspondence received relating to these agenda items and materials distributed at the meeting, may be obtained 1) in the consolidated online Agenda Center at pismobeach.org/agenda, 2) in the Access Pismo public records portal at pismobeach.org/accesspismo, 3) by request from the City Clerk at [email protected], or 4) in person at the City Clerk's Office, City Hall, 760 Mattie Road, Pismo Beach, Mon–-Fri 8:00 a.m.–-5:00 p.m. Please call (805) 773-7003 with any questions.
Broadcasting: Regular (televised) City Council meetings are available for viewing 24/7 at pismobeach.org/agenda, broadcast live on Channel 20, and re-broadcast during the week following the meeting on Channel 20 at 9:00 a.m., 6:00 p.m., and 1:00 a.m. each day.
Use of Equipment: Please contact the City Clerk’s Office if requesting to use the chamber equipment during public comment or as part of a scheduled presentation, 24 hours prior to the meeting at (805) 773-7003.
Notice Regarding Americans with Disabilities Act
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting or if you need agenda documents provided in an alternative format, please contact the City Clerk’s Office at 773-7003 as soon as possible prior to the meeting to ensure that reasonable arrangements can be made (28CFR 35.102-
35.104 ADA Title II).
A PROCLAMATION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA RECOGNIZING MAY AS “NATIONAL FOSTER CARE MONTH” WHEREAS, the City of Pismo Beach recognizes the importance of providing children safe, healthy and loving homes when they are unable to remain in the home of their biological family; and
WHEREAS, there are more than 420,000 children in the United States in the foster care system; and
WHEREAS, more than 60,000 children in California are in the foster care system; and WHEREAS, there are over 250 children, youth, and teenagers in the County of San Luis Obispo who are in the foster care system; and
WHEREAS, to help these children have a healthy, loving and stable home environment where they can thrive and feel connected to a community that cares for them, and to support the resource families that provide these critical homes, the County of San Luis Obispo Department of Social Services is acknowledging National Foster Care Month to raise awareness about the need for more resource family homes in our county for local children and join other organizations to celebrate resource families in our community; and WHEREAS, this effort, along with similar celebrations in all 50 states and the District of Columbia, will offer children the chance to live with healthy, loving, and stable resource families when they cannot live with their birth families and encourage other dedicated individuals to make a powerful difference in the lives of a child through resource family care.
NOW, THEREFORE, the City Council of the City of Pismo Beach hereby proclaims May as “National Foster Care Month” in the County of San Luis Obispo and in so doing, urges all citizens to join in a national effort to raise awareness about the importance of foster care and resource family care.
Dated this 7th day of May, 2024
________________________
Ed Waage, Mayor
Council Agenda 05-07-2024 4.A-1
Packet Page 1
PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.A
Meeting Date: May 7, 2024
TITLE:
Adoption of Meeting Minutes
RECOMMENDATION:
Adopt Minutes of the April 16, 2024 Closed and Regular Meeting.
DISCUSSION:
Attached for the Council’s consideration are the draft minutes of the subject meetings for review and adoption.
FISCAL IMPACT:
There is no fiscal impact associated with the preparation or adoption of meeting minutes.
ATTACHMENTS:
1.Draft Minutes of the April 16, 2024 Closed and Regular Meeting Submitted by:
Erica Inderlied, City Clerk
City Manager Approval:
9.A-1Council Agenda 05-07-2024
Packet Page 2
DRAFT MINUTES
Pismo Beach City Council
Tuesday, April 16, 2024
Special Closed Session—5:00 p.m.
City Hall, 760 Mattie Road, Pismo Beach, CA 93449
The City Council of the City of Pismo Beach met this date in a special closed session with Mayor Waage presiding.
CALL TO ORDER: Mayor Waage called the meeting to order at 5:00 p.m.
1.ROLL CALL:
Present: Absent:
Mayor Ed Waage None
Mayor Pro Tem Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Stacy Inman
Council Member Scott Newton
Staff Present:
David Fleishman, City Attorney
Jorge Garcia, City Manager
Mike James, Assistant City Manager
2.PUBLIC COMMENT PERIOD
Call for public comment: No comment.
3.ANNOUNCEMENT OF CLOSED SESSION ITEMS
City Attorney Fleishman announced the Closed Session item listed below.
Item 2.A: Conference with Legal Counsel – Existing Litigation (Paragraph (1) of subdivision (d) of Government Code §54956.9) Name of Case: V. Lopez Jr. & Sons General Engineering Contractors, Inc. vs.
City of Pismo Beach
San Luis Obispo Superior Court Case No. 20CV-0652
The Council retired to Closed Session to consider the above items.
9.A-2Council Agenda 05-07-2024
Attachment 1
Packet Page 3
4.CLOSED SESSION REPORT
City Attorney Fleishman would report in the next regular open session that no reportable action was taken on the above item.
5.ADJOURNMENT
At 5:32 p.m., to the 5:30 p.m. Regular Meeting.
9.A-3Council Agenda 05-07-2024
Attachment 1
Packet Page 4
Regular Meeting—5:30 p.m.
Council Chamber, City Hall, 760 Mattie Road, Pismo Beach, CA 93449 The City Council of the City of Pismo Beach met this date in a regular session with Mayor Waage presiding.
CALL TO ORDER: 5:30 p.m.
1.ROLL CALL:
Present: Absent:
Mayor Ed Waage None
Mayor Pro Tem Mary Ann Reiss
Council Member Marcia Guthrie
Council Member Stacy Inman
Council Member Scott Newton
Staff Present:
Nadia Feeser, Administrative Services Director
Scot Graham, Community Development Director
Benjamin Fine, Public Works Director/City Engineer
David Fleishman, City Attorney
Jorge Garcia, City Manager
Erica Inderlied, City Clerk
Gordon Jackson, Director of Tourism and Events
Mike James, Assistant City Manager
Jeff Smith, Chief of Police
Dell Wells, Fire Captain
Other staff present as noted below
2.PLEDGE OF ALLEGIANCE
Mayor Pro Tem Reiss led the Pledge of Allegiance.
3.ACCEPTANCE OF AGENDA
No requests to reorder the agenda.
4.PRESENTATIONS
Item 4.A: Presentation: Visit from Happy Time Preschool Students (Happy Time Preschool)
Presented by Amy Turner, Happy Time Preschool.
9.A-4Council Agenda 05-07-2024
Attachment 1
Packet Page 5
Item 4.B: Presentation: Introduction of New Employees & CDD Update •Michael Stoker, Building Official (Graham)
Community Development Director Graham introduced new Building Official Mike Stoker.
Item 4.C: Proclamation: Sexual Assault Awareness Month (Lumina Alliance) Presented to Kathy Thompkins and Nancy DePue, Lumina Alliance
5.PUBLIC COMMENT PERIOD
Call for public comment:
Don Day commented.
6.CITY MANAGER’S REPORT
City Manager Garcia commented on various topics, including National Public Safety Telecommunicator Week, and the upcoming groundbreaking ceremony for the Public Safety Facility project.
7.CITY ATTORNEY’S REPORT / CLOSED SESSION REPORT
City Attorney Fleishman reported that the Council had taken no reportable action during its 5:00 p.m. Closed Session.
8.COUNCIL COMMITTEE REPORTS
The Council reported on recent and upcoming meetings of various external bodies:
Mayor Waage:
San Luis Obispo Local Agency Formation Commission (SLO LAFCO).
San Luis Obispo County Community Fire Safe Council.
9.CONSENT CALENDAR
Call for public comment:
Don Day commented.
Council Member Inman requested that Item 9.E, Traffic Safety Committee Recommendations to City Council, be pulled for discussion.
9.A-5Council Agenda 05-07-2024
Attachment 1
Packet Page 6
Action: Adopt Consent Calendar.
Motion: Newton
Second: Guthrie
Vote: The motion passed on the following vote (Items 9.A through 9.D; Item 9.F):
Ayes: 5 Newton, Guthrie, Inman, Reiss, Waage
Noes: 0
Absent: 0
Abstain: 0
Recused: 0
Item 9.A: Adoption of Meeting Minutes (Inderlied)
Recommendation:
1. Adopt Minutes of the February 16, 2024 Special Workshop;
2. Adopt Minutes of the April 2, 2024 Regular Joint Meeting.
Item 9.B: Payroll Register and Register of Demands (Feeser)
Recommendation:
1. Approve the Summary of Payroll Register for March 24, 2024;
2. Approve the Register of Demands for March 29, 2024.
Item 9.C: Paid Parking Quarterly Update—Third Quarter of Fiscal Year 2024 (Graham)
Recommendation:
No action recommended, for information only.
Item 9.D: Annual City Weed Abatement Program; Declaration of Nuisances (Lee)
Recommendation:
Adopt a Resolution declaring that grass, weeds, and rubbish on certain lots in the City of Pismo Beach constitute public nuisances and ordering said public nuisances to be abated.
Legislative Record: Resolution R-2024-022 adopted.
Item 9.E: Traffic Safety Committee Recommendations to City Council (Fine)
Pulled from the Consent Calendar for discussion.
9.A-6Council Agenda 05-07-2024
Attachment 1
Packet Page 7
Item 9.F: Award of Contract to Yoda Painting Inc. for the City Hall Exterior Improvements Project (Fine)
Recommendation:
Adopt a Resolution authorizing the City Manager to execute a contract with Yoda Painting Inc. for the City Hall Exterior Improvements Project in the amount of $102,000.
Legislative Record: Resolution R-2024-023 adopted.
10.ITEMS PULLED FROM CONSENT
Item 9.E: Traffic Safety Committee Recommendations to City Council (Fine) Recommendation:
1.Adopt a Resolution authorizing the installation of one Bus Loading Zone sign on Bello Street at the northern most edge of the Lucia Mar bus stop.
2.Receive a report on the items considered at the most recent Traffic Safety Committee meeting.
Presenting staff:
Benjamin Fine, Public Works Director/City Engineer
Jorge Garcia, City Manager
Call for public comment: No comment.
Action: Adopt a Resolution authorizing the installation of one Bus Loading Zone sign on Bello Street at the northern most edge of the Lucia Mar bus stop.
Motion: Inman
Second: Guthrie
Vote: The motion passed on the following vote:
Ayes: 5 Inman, Guthrie, Newton, Reiss, Waage
Noes: 0
Absent: 0
Abstain: 0
Recused: 0
Legislative Record: Resolution R-2024-024 adopted.
9.A-7Council Agenda 05-07-2024
Attachment 1
Packet Page 8
11.PUBLIC HEARINGS
Item 11.A: Resolution Levying the 2% Annual Assessment for the Pismo Beach Lodging Business Improvement District (LBID) for Fiscal Year 2025:
July 1, 2024 through June 30, 2025 (Feeser)
Recommendation:
1.Open public hearing; accept protests, if any, to the proposed assessments; close public hearing;
2.Adopt a Resolution levying a 2% annual assessment for the Pismo Beach Lodging Business Improvement District (LBID) for Fiscal Year 2025: July 1, 2024 through June 30, 2025.
Presenting staff:
Nadia Feeser, Administrative Services Director
Jorge Garcia, City Manager
Guest presenters:
Colleen Jimenez, Pismo Beach Hospitality Association
Public Hearing / Call for public comment: No comment.
The public hearing was closed.
Action: Adopt a Resolution levying a 2% annual assessment for the Pismo Beach Lodging Business Improvement District (LBID) for Fiscal Year 2025:
July 1, 2024 through June 30, 2025.
Motion: Inman
Second: Guthrie
Vote: The motion passed on the following vote:
Ayes: 5 Inman, Guthrie, Newton, Reiss, Waage
Noes: 0
Absent: 0
Abstain: 0
Recused: 0
Legislative Record: Resolution R-2024-025 adopted.
9.A-8Council Agenda 05-07-2024
Attachment 1
Packet Page 9
12.BUSINESS ITEMS
Item 12.A: Paving Project Update and Amendment #1 to the Agreement with Cannon Corporation for Construction Management, Inspection, Materials Testing and Administrative Services for the Paving Project (Fine)
Recommendation:
1. Receive an update on the current status of the 2022 Paving Project;
2.Adopt a Resolution authorizing the City Manager to execute Amendment #1 to the existing Professional Services Agreement with Cannon Corporation in the amount of $148,617.50 for Construction Management, Inspection, Materials Testing and Administrative Services for the 2022 Paving Project.
Presenting staff:
Benjamin Fine, Public Works Director/City Engineer
Jorge Garcia, City Manager
Call for public comment: No comment.
Action: Adopt a Resolution authorizing the City Manager to execute Amendment #1 to the existing Professional Services Agreement with Cannon Corporation in the amount of $148,617.50 for Construction Management, Inspection, Materials Testing and Administrative Services for the 2022 Paving Project.
Motion: Newton
Second: Inman
Vote: The motion passed on the following vote:
Ayes: 5 Guthrie, Inman, Newton, Reiss, Waage
Noes: 0
Absent: 0
Abstain: 0
Recused: 0
Legislative Record: Resolution R-2024-026 adopted.
13.CITY COUNCIL COMMENTS AND REQUESTS
The Council congratulated Police Corporal Patrick Rockwood on being recently promoted.
9.A-9Council Agenda 05-07-2024
Attachment 1
Packet Page 10
14. ADJOURNMENT
At 6:42 p.m.
APPROVED: ATTEST:
________________________________ ________________________________ Ed Waage, Mayor Erica Inderlied, City Clerk
9.A-10Council Agenda 05-07-2024
Attachment 1
Packet Page 11
PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.B
Meeting Date: May 7, 2024
TITLE:
Payroll Register and Register of Demands
RECOMMENDATION:
1. Approve the Summary of Payroll Register for April 7, 2024, and April 21, 2024;
2. Approve the Register of Demands for April 5, 2024 and April 12, 2024.
DISCUSSION:
Attached are the Summary of Payroll Register(s) and Register(s) of Demands (Check Registers) noted above, provided for Council approval.
FISCAL IMPACT:
As demonstrated in the attached payroll and check registers.
ATTACHMENTS:
1.Payroll Summary
2. Registers of Demands
Submitted by: Nadia Feeser, Administrative Services Director/City Treasurer City Manager Approval:
Council Agenda 05-07-2024 9.B-1
Packet Page 12
FOR PERIOD ENDING 04/07/24
CHECKS DATED 04/12/24
PAYROLL CHECKS AND DIRECT DEPOSIT TRANSACTIONS
Checks 557071-557072 2
ACH 128
EARNINGS
REGULAR 385,824.63
HOLIDAY 5,309.30
OVERTIME (Includes Comp Time Payouts)23,809.47
Administration
Building
Conference & Visitors Bureau
Police Department 18,978.15
Parking
Engineering
Fire
Recreation
Public Works 1,695.76
Water 1,305.60
Wastewater 1,829.96
Motor Vehicles
Subtotal-Overtime 23,809.47$
SALARY ADJUSTMENTS 5,474.21
TRAINING / UNIFORM ALLOWANCE 94.50
OTHER EARNINGS 15,451.62
$435,963.73
LESS AUTHORIZED PAYROLL DEDUCTIONS
FEDERAL WITHHOLDING TAX 42,148.96
FICA & MEDICARE 33,858.40
STATE INCOME TAX 15,982.48
STATE DISABILITY INSURANCE 4,646.13
GARNISHMENTS 529.99
HEALTH 4,055.00
SUPPLEMENTAL DISABILITY 1,509.21
SECTION 125 2,176.56
PERS 36,724.18
DEFERRED COMPENSATION 13,230.56
ADDITIONAL LIFE INSURANCE 327.80
UNION DUES 2,326.09
PISMO ATHLETIC CLUB 532.84
OTHER
NET PAYROLL $277,915.53
DIRECT DEPOSIT DEDUCTION 275,941.01
NET PAYROLL AFTER ACH DEPOSIT 1,974.52
SUMMARY PAYROLL REGISTER
Council Agenda 05-07-2024 9.B-2
Attachment 1
Packet Page 13
FOR PERIOD ENDING 04/21/24
CHECKS DATED 04/26/24
PAYROLL CHECKS AND DIRECT DEPOSIT TRANSACTIONS
Checks 557073‐557082 10
ACH 130
EARNINGS
REGULAR 380,229.93
HOLIDAY 5,037.05
OVERTIME (Includes Comp Time Payouts)19,971.09
Administration
Building
Conference & Visitors Bureau
Police Department 15,612.31
Parking
Engineering
Fire
Recreation
Public Works 1,023.00
Water 1,485.15
Wastewater 1,850.63
Motor Vehicles
Subtotal‐Overtime 19,971.09$
SALARY ADJUSTMENTS
TRAINING / UNIFORM ALLOWANCE 132.00
OTHER EARNINGS 13,371.62
$418,741.69
LESS AUTHORIZED PAYROLL DEDUCTIONS
FEDERAL WITHHOLDING TAX 37,622.99
FICA & MEDICARE 32,561.08
STATE INCOME TAX 14,487.45
STATE DISABILITY INSURANCE 4,477.22
GARNISHMENTS 529.99
HEALTH 4,055.00
SUPPLEMENTAL DISABILITY 1,509.21
SECTION 125 2,176.56
PERS 35,650.60
DEFERRED COMPENSATION 13,280.56
ADDITIONAL LIFE INSURANCE 327.80
UNION DUES 2,281.50
PISMO ATHLETIC CLUB 592.67
OTHER
NET PAYROLL $269,189.06
DIRECT DEPOSIT DEDUCTION 264,653.69
NET PAYROLL AFTER ACH DEPOSIT 4,535.37
SUMMARY PAYROLL REGISTER
Council Agenda 05-07-2024 9.B-3
Attachment 1
Packet Page 14
City of Pismo Beach
Final Disbursement List Check Date 04/05/2024
US BANK
ACH/ Vendor Check
Check# Number Payee Amount Description
129253 14760 AHA Shoes, Inc 293.62$ Safety Boots
129254 12275 Airgas West Inc 46.08 Medical Supplies
129255 12433 Alpha Electrical Service Inc 8,647.00 WW Electrical Repairs 129256 11501 Backyard Improvement Center 20.45 Beach Volleyball Courts 129257 14514 BEK Collective Inc 2,901.43 James Way Beautification Design ‐ Jan/Feb 2024 129258 14119 Boone Printing & Graphics, Inc.133.66 Business Cards 129259 10888 Bound Tree Medical LLC 133.90 Cleaning Supplies 129260 10028 Brisco Mill & Lumber Yard 176.34 Maintenance Supplies 129261 13852 California Diesel & RV LLC 304.58 Fire Truck Maintenance 129262 10085 Cannon Associates 2,357.45 Ocean Blvd Improvements ‐ Feb 2024 129263 10269 Carquest Auto Parts 92.57 Vehicle & Fire Truck Maintenance 129264 14649 Luis Castaneda 200.00 Reimb: Class A License 129265 11451 Channel Islands Technology Integrators' Group 13,419.00 Monthly Help Desk March 2024 129266 11227 Cole Chrysler Dodge 61.15 Vehicle Maintenance 129267 14313 Culligan/Santa Maria 252.05 Drinking Water Mar 2024 129268 14797 CultureStoke, LLC 875.00 'Cuz We're Pismo Presentation 3/20/24 129269 14733 Deep Blue Integration 165.00 Quarterly Fire Alarm Monitoring 4/1/24‐6/30/24 129270 12628 Dell Marketing LP 4,202.10 Computer Supplies 129271 14217 Deltina Coffee Roasters 62.50 Coffee
129272 14519 Matthew Downs 376.00 M&IE: K9 School 4/14‐4/19/24 ‐Week 6 129273 11289 eGenoa, LLC 342.57 Vehicle Decals
129274 10746 Electricraft Inc.516.00 Emergency Services Relocation ‐ Fiber Splice 129275 11917 First American Title 500.00 Lot Merger Title Report ‐ Safety Center 129276 13401 Rebecca Forcier 55.01 Reimb: Rental Car Gas 'Cuz We're Pismo 3/18‐3/23/24 129277 10398 Liliana Graham 204.80 Instructor: Ballroom/Latin Dance 3/4/24‐3/25/24 #11359 129278 12952 GSI Water Solutions Inc 4,011.63 NCMA Annual Report ‐ Feb 2024 129279 14619 Brian Hanson 404.00 M&IE: The Academy Supervisory Course 4/14‐4/19/24 129280 11833 Keylock Security Specialists 53.29 Facilities Maintenance 129281 12096 Lee Wilson Electric Co Inc 345.00 Signal Light Maintenance ‐ February 2024 129282 12032 Midwest Motor Supply 218.38 Maintenance Supplies 129283 10097 Miners Hardware 728.63 Maintenance Supplies 129284 14405 Mission Linen Supply 888.53 Uniforms/Mats/Towels Mar 2024 129285 11172 Mullahey Ford 343.26 Vehicle Maintenance
129286 10039 New Times 234.00 Legal Advertising
129287 14343 ODP Business Solutions, LLC 629.58 Office & Kitchen Supplies 129288 12070 Michelle Pearson 822.16 M&IE:AFSS Conference 2024 4/9‐4/13/24 129289 14550 Phillco 72.95 Soft Water
129290 12335 Procare Janitorial Supply Inc 1,746.65 Safety & Janitorial Supplies 129291 10817 PRP Co Dba PRP Companies 338.83 2023 Annual Report Printouts 129292 14613 Dennis Richardson 368.00 Instructor: Tennis with Dennis 3/2/24‐3/30/24 #11355 129293 13201 Rincon Consultants, Inc.800.00 Central Coast Blue ‐ Feb 2024 129294 11266 San Luis Auto Parts Inc 95.27 Vehicle Maintenance 129295 12108 Santa Maria Tire, Inc.205.76 Vehicle Maintenance 129296 14557 Securitas Technology Corporation 2,035.32 Emergency Switch Installation & Service Call ‐ Chapman Estate 129297 10913 Siteone Landscape Supply LLC 292.67 Irrigation Supplies & Maintenance 129298 11412 Jennifer Franco Smith 200.00 Portable Toilets ‐ Chapman Estate Mar 2024 129299 14757 Quincy Storm 900.00 Design Services
129300 11549 Tech Time Communications 225.00 Quarterly Alarm Monitoring ‐ Sta 63 Q2 2024 129301 12461 TJA Advertising 83,967.19 CVB & LBID Advertising & Promotion: Feb 2024 129302 12924 Traffic Management Inc 416.89 Signs
129303 12991 TransUnion Risk and Alternative 150.40 Investigative Services 3/1/24‐3/31/24 129304 10380 Trinity Cyclery 9,678.76 (2) Service Electric L Trek Bikes ‐ Police PD 129305 13392 Urban Planning Concepts 19,665.00 In‐house Planning Services ‐ Feb 2024 129306 14115 Vanir Construction Mgmt, Inc.12,065.77 Professional Services 2/1/24‐2/29/24 129307 14758 WBCP, Inc.9,909.27 Recruitment Services
129308 10059 Western Janitor Supply, Inc 82.18 Cleaning Supplies Total:188,232.63$
Council Agenda 05-07-2024 9.B-4
Attachment 2
Packet Page 15
City of Pismo Beach
Final Disbursement List Check Date 04/12/2024
US BANK
ACH/ Vendor Check
Check# Number Payee Amount Description
ACH 10002 Internal Revenue Service 109,865.76$ Federal Income Tax PD 04/12/24 ACH 11208 SEIU Local 620 AFL/CIO 947.13 SEIU Dues PD 04/12/24 ACH 11305 Public Employees Retirement System 77,550.05 PERS Retirement from Springbrook EE & ER PD 04/12 ACH 12260 dba: Mission Square ICMA Retirement Trust ‐
457
26,299.77 ICMA 457 Deferred Comp EE& ER PD 04/12/24
ACH 12305 Franchise Tax Board 20,652.94 State Income Tax & SDI ‐ PD 04/12/24 ACH 12360 CalPERS 457 Plan 416.67 PERS 457 Deferred Comp EE & ER PD 04/12/24 ACH 12708 dba: Mission Square ICMA Retirement Trust‐
Roth IRA
725.00 ICMA Roth IRA PD 04/12/24
ACH 13455 Wex 1,417.29 Fuel for City Vehicles 03/07/24 ‐ 04/06/24 ACH 14547 Quadient, Inc ‐ Postage 1,000.00 Postage Mar 2024 129309 14078 5‐Cities Community Service Foundation 132.00 Five Cities Men's Club Dues ‐ Feb & Mar 2024 129310 10434 Abalone Coast Analytical Inc 468.00 Water Analysis 129311 12275 Airgas West Inc 65.48 Oxygen ‐ Fire ‐ Mar 2024 129312 10800 Whitney Almaguer 1,404.00 Instructor: Creative Kids Theatre Production 1/23/24‐4/25/24 #11 129313 12433 Alpha Electrical Service Inc 2,902.21 Emergency Service Call ‐ Baker St Lift Station 129314 14123 Amazon Business 22.28 Vehicle Maintenance
129315 11365 American Legal Publishing Corporation 951.52 Ordinance Codification 129316 11096 Arroyo Grande Chevrolet 2,053.22 Vehicle Maintenance 129317 12625 AT&T 9391083592 916.42 PD Migration Internet ‐ 03/01/2024 ‐ 03/31/2024 129318 13460 AT&T Mobility 287284035974 2,744.96 Monthly Phone Service ‐ Feb & Mar 2024 129319 11589 Austin's Wet Pets and Pond Maintenance, Inc 140.00 Chapman Pond Maintenance ‐ March 2024 129320 14369 Badawi & Associates 4,117.00 2023 Audit Final Billing 129321 14119 Boone Printing & Graphics, Inc.144.60 Business Cards 129322 11392 Brenntag Pacific Inc.1,951.69 Sodium Bisulfite 129323 14779 Sally Budd‐Unks 254.40 Instructor: Dance Fit Feb 2024 #11406 & 3/5/24‐3/28/24 #11407 129324 10074 Burdine Printing 93.91 City Seal Labels
129325 14038 Bureau Veritas North America, Inc.32,012.50 Building Division Support Services ‐ Feb 2024 & Plan Review Nov/Dec 2023 & Feb 2024
129326 14476 Burt Industrial Supply, Inc 41.92 Vehicle Maintenance 129327 10271 CA Society Of Municipal Finance Officers 54.38 Reimb: CSMFO Meeting 1/17/2024 129328 13852 California Diesel & RV LLC 1,487.19 Vehicle Maintenance 129329 14414 California State Disbursement Unit 461.53 Tax Withholding Order PD 04/12/24 129330 14771 California State Disbursement Unit 18.46 Tax Withholding Order #2 PD 04/12/24 129331 12610 CalPortland Construction 763.14 Truck Rental & Fill Sand 129332 13328 Campfire Central Coast of CA 500.00 Deposit Refund PBVH Rental 3/17/24 129333 10085 Cannon Associates 24,361.75 James Way CM & Clarifier Rehab Bid Support ‐ Feb 2024 129334 10269 Carquest Auto Parts 294.80 Vehicle Maintenance 129335 10928 Carolyn Casas 1,500.00 Encroachment Permit Bond Release 129336 14649 Luis Castaneda 75.00 Reimb: Office of Water Programs AWWT 129337 12506 CCGC, Inc Attn: AR 772.00 Parking Annex Special Inspection ‐ Feb 2024 129338 11451 Channel Islands Technology Integrators' Group 321.45 IT Professional Services 129339 11169 Coast Riders Powersport Sales 1,284.17 Vehicle Maintenance 129340 10708 Coastline Equipment 1,891.03 Equipment Maintenance 129341 13257 Core & Main LLP 1,303.09 Water System Meters 129342 14146 Pamela Ann Coslick 176.00 Instructor: Tae Kwon Do March #11352 129343 14801 Jeffrey & Kelly Crookston 1,500.00 Encroachment Permit Bond Release 129344 14313 Culligan/Santa Maria 736.84 Drinking Water Mar 2024 129345 14217 Deltina Coffee Roasters 125.00 Coffee
129346 14805 Robert Dockerty 1,100.00 Cash for Grass Rebate 129347 11289 eGenoa, LLC 1,305.00 Vehicle Decals
129348 13646 Eurofins Eaton Analytical, LLC 5,602.00 Influent Testing 129349 14638 F&H Construction 698,313.06 Public Safety Center ‐ Feb 2024 129350 13586 Famcon Pipe & Supply Inc.14,721.01 Paving Project & Distribution Maintenance & Hydrant Guard & Hydrant Repair ‐ 100 S Dolliver
129351 UB*01087 THERESA FOSTER (T)53.12 Refund Check 018288‐000, 390 ESPARTO 129352 13846 Franchise Tax Board‐Tax Withholding‐2 50.00 Tax Withholding Order PD 04/12/24 129353 13575 Jorge Garcia 207.00 M&IE: 2024 LOCC City Leaders Summit 4/16‐4/19/24 129354 13809 Jeffrey Gorham 795.04 M&IE & Mileage: CA Rural Water Association 2024 Expo 4/22‐ 4/26/24
129355 12144 CLA‐VAL Griswold Industries 603.40 Maintenance Supplies Council Agenda 05-07-2024 9.B-5
Attachment 2
Packet Page 16
City of Pismo Beach
Final Disbursement List Check Date 04/12/2024
US BANK
ACH/ Vendor Check
Check# Number Payee Amount Description
129356 11487 Hamner, Jewell And Associates 1,515.74 Cliff Ocean RW Services ‐ Feb 2024 129357 14619 Brian Hanson 404.00 M&IE: Supervisory Course 4/21‐4/26/24 129358 14043 Health & Human Resource Center, Inc.159.80 Capitation for Period of May 2024 129359 UB*01090 ROBERT & MARY HIPSCHMAN (T)24.79 Refund Check 016280‐000, 1308 COSTA BRAVA 129360 14806 Jody Hollaway 8.37 Refund: CC Processing Fee 129361 13385 IPS Group, Inc.2,638.55 IPS Transaction Fees ‐ Feb 2024 129362 12255 Iron Mountain Information Mgmt, Inc 192.13 Shredding Services City Hall ‐ 02/21/2024 ‐ 03/26/2024 129363 11828 Gordon Jackson 165.00 Refund: City Received Credit For 'EE Paid Seat Upgrade‐Go West & M&IE: 2024 CCTC Annual Retreat & Planning Session
129364 12083 Daniel Johnson 795.04 M&IE & Mileage CA Rural Water Association 2024 Expo 4/22‐ 4/26/24
129365 UB*01089 NICOLE CIVEROLO JUAN CARLOS MUNOZ (T)127.99 Refund Check 018803‐000, 265 LEEWARD Council Agenda 05-07-2024 9.B-6
Attachment 2
Packet Page 17
City of Pismo Beach
Final Disbursement List Check Date 04/12/2024
US BANK
ACH/ Vendor Check
Check# Number Payee Amount Description
129366 11833 Keylock Security Specialists 194.98 Facilities Maintenance 129367 10175 Life‐Assist, Inc.560.30 Medical Supplies
129368 14577 LK Graphics 939.07 Nameplates & Council Chamber Restroom Sign & Authorized Personnel Only Signs
129369 13645 MDN Engineering, LLP 10,625.00 Bello Bridge Habitat Monitoring ‐ 3/4‐3/14/24 & Paving Project ‐ Feb/Mar 2024
129370 12960 Med‐Stops Medical Clinic Inc 200.00 DMV/DOT Physical 129371 12032 Midwest Motor Supply 551.82 WWTP Maintenance Supplies 129372 14739 Mike's Coffee and Tea Co.54.00 Coffee
129373 10097 Miners Hardware 563.51 Maintenance Supplies 129374 14405 Mission Linen Supply 2,280.00 Uniforms/Mats/Towels ‐ Mar 2024 129375 11172 Mullahey Ford 4,480.67 Vehicle Maintenance 129376 10039 New Times 425.00 Legal Advertising
129377 14343 ODP Business Solutions, LLC 15.98 Office Supplies 129378 10728 Oilfield Environmental & Compliance, Inc.2,914.50 Lab Analysis 129379 10633 Pismo Beach Athletic Club Inc 976.84 PBAC Dues April 2024 129380 12022 Pismo Beach Police Officer's Association 1,378.96 POA Dues PD 04/12/24 129381 UB*01085 WILLIAM & ALICIA PORTILLO (T)75.80 Refund Check 017438‐000, 108 BEACHCOMBER 129382 14802 Caroline Portzel‐Vaccaro 1,440.00 Instructor: Art Camp Spring 4/1‐4/5/24 #11392 129383 14740 Premier Supply, LLC 127.15 Hydrant ‐ 100 Dolliver 129384 13898 Quadient, Inc.493.20 Neopost Postage Lease 01/16/24 ‐ 04/15/24 129385 11849 Tom Reilly 411.22 Instructor: Pickleball Camp 4/2/24‐4/4/24 #11402 129386 14320 Joey Salazar 251.00 M&IE: CA Rural Water Association 2024 Expo 4/22‐4/26/24 129387 11796 San Luis Powerhouse, Inc.1,372.97 Lift Station Maintenance 129388 12108 Santa Maria Tire, Inc.1,496.19 Vehicle Maintenance 129389 14190 Santa Ynez Valley Elite Event Party Rentals 1,084.35 Deposit: July 4th Celebration Table & Chair Rentals 129390 13994 SBRK Finance Holdings, Inc.656.50 CivicPay IVR Transaction Fees Mar 2024 129391 14076 SCL‐North 3,469.55 Bollard Tops ‐ Pier
129392 10887 Signs Of Success 4,025.61 Visitor Information Pier Airstream Signs 129393 10532 SLO County Sheriff‐Coroner 54.00 Lab Services 129394 12570 SLO Roasted Coffee 37.00 Coffee
129395 10576 SLOCO Data, Inc 68.96 Pismo Beach Info Center Signs 129396 14099 Jeffrey Smith 207.00 M&IE: City Leaders Summit‐ 4/16‐4/19/24 129397 14800 SPICE Integration Corp 437.50 SCADA System Maintenance 129398 14803 State of California 225.00 Elevator Permit Inspection 129399 11323 Streator Pipe & Supply 111.28 Maintenance Supplies 129400 14639 TimeClock Plus, LLC 1,645.31 E‐Timesheet Project Implementation Services Feb 2024 129401 12622 USA Bluebook Acct: 82507 99.02 Lab Supplies 129402 10507 V & V Manufacturing 163.87 Flat Badge
129403 UB*01088 MIKE VARGA 17.70 Refund Check 014023‐004, 185 FOOTHILL 129404 14034 Vital Records Holdings, LLC 182.83 Document Storage April 2024 129405 12527 Water Systems Consulting Inc 480.40 NCMA Staff Extension ‐ Feb 2024 129406 12132 White Flag Pest Control Inc 355.00 Pest Control 129407 12686 Mark Wilson 100.00 Reimb: Pesticide License 2024 ‐ M. Wilson 129408 12686 Mark Wilson 251.00 M&IE: CA Rural Water Association 2024 Expo 4/22‐4/26/24 129409 14020 Daniel Barrett Wrage 960.00 Instructor: Beach Volleyball Spring Camp 4/1/24‐4/4/24 #11393 129410 UB*01086 MATT ZEREGA (T)50.09 Refund Check 018342‐000, 369 HINDS #E Total:1,102,207.72$
Council Agenda 05-07-2024 9.B-7
Attachment 2
Packet Page 18
PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.C
Meeting Date: May 7, 2024
TITLE:
Monthly Investment Transaction Report of the City’s Cash and Investments for March 2024 of Fiscal Year 2024
RECOMMENDATION:
No action recommended; for information only.
DISCUSSION:
This report updates the City Council on the City of Pismo Beach’s monthly transactions of the City’s investment portfolio for the month ending March 31, 2024. California State Government Code Section 53607 states that if the authority of the legislative body to invest or reinvest funds for the City is delegated to the City Treasurer, the City Treasurer shall make a monthly report of those transactions to the legislative body.
The attached report includes all transactions of the City’s investments managed by the City, including funds invested in various securities and the City’s pooled funds invested in various financial instruments.
•Attachment 1 provides a summary of the City’s cash, investments, and monthly interest earnings based on book value as of March 31, 2024. •Attachment 2 provides details on the investment transactions for the General Fund Reserve and City Pooled Funds A (for deferred capital projects), including: purchases or deposits; sales, maturities, calls or withdrawals; and interest earnings. •Attachment 3 provides details of the monthly transactions by fund for City Pooled Funds B (for current year expenditures) for the month ending March 31, 2024.
FISCAL IMPACT:
No fiscal impact from the report itself—information only.
ATTACHMENTS:
1.Summary Table for ALL Funds, including Book Values and Earnings Data for Investments in Other Financial Instruments
2.For the General Fund Reserve and City Pooled Funds A—Transactions on Investments in Securities
3.For City Pooled Funds B—Summary of monthly transactions by fund Prepared by: Vanessa Garris, Finance Manager
Submitted by: Nadia Feeser, Administrative Service Director / City Treasurer City Manager Approval:
Council Agenda 05-07-2024 9.C-1
Packet Page 19
City of Pismo Beach
Investment Name Name of Institution Type of Investment
Current
Earnings
Rate Book Value
Actual Interest
Earned March
2024
Actual Year-to-
Date Interest
Earned Ending
3/31/2024 * Data Sources
General Fund Reserves US Bank CDs/GASs/Corp/
Muni Bonds
2.08% avg 7,658,980 15,492$ 108,915$ 1 City Pooled Funds - A US Bank CDs/GASs/ Corp
Bonds/ Muni Bonds/
US Treasury Note
3.00% avg 34,736,551 204,291 1,052,792 1 Total All Securities 42,395,531$ 219,783$ 1,161,707$ City Pooled Funds - B US Bank Custody 0.00%-$ 172$ 7,590$ 1 City Pooled Funds - B Local Agency Invest.
Fund
State Investment
Pool
4.30%20,033,457 230,104 512,639 2 City Pooled Funds - B US Bank Checking & Sweep 4.91%13,782,202 16,235 25,929 3 City Pooled Funds - B 33,815,659$ 246,511$ 546,158$ City Pooled Funds total A + B 68,552,211$ 450,801$ 1,598,949$ Funds Held with Fiscal
Agent
Bond funds:
Wilmington Trust
2017 Pier Project 586$ 2$ 594$ 4
Funds Held with Fiscal
Agent
Bond funds:
Wilmington Trust
2017 CREB's
Project
1,021 4 511 4
CalPERS Benefit Trust
OPEB Trust Account CalPERS Benefit
Trust Account
Various managed by
CalPERS
5,500,858$ 188,412$ 496,152$ 5 TOTAL, Cash and Investments at March 31, 2024:81,713,656$ 654,712$ 2,205,120$ TOTAL for City Managed Portfolio, Cash and Investments:76,211,190$ 466,293$ 1,707,865$ Notes:
* Data Sources for Book Values and Actual Interest Earned:
1 = Monthly Customer Statement from US Bank
2 = Monthly statement from Local Agency Investment Fund 3 = Monthly reconciled bank statement from US Bank
4 = Monthly statement from Wilmington Trust
5 = Monthly statement from CalPERS Benefit Trust Account Attachment 1: Summary Table for All Funds,
including Book Values and Earnings Data for Investments in Other Financial Instruments Attachment 1
Council Agenda 05-07-2024 9.C-2
Packet Page 20
CITY OF PISMO BEACH
Attachment 2: For the General Fund Reserve and City Pooled Funds A Transactions on Investments in Securities
March 31, 2024
INVESTMENT ACTIVITY
PURCHASES OR DEPOSITS
03/06/24 Purchase Morgan Stanley Bank 245,000$
03/21/24 Purchase US Treasury Bill 8,003,991
Total 8,248,991$
SALES, MATURITIES, CALLS OR WITHDRAWALS
03/21/24 Matured US Treasury Bill 7,992,713$
03/28/24 Matured US Treasury Bill 5,899,666
Total 13,892,380$
ACTIVITY TOTAL (5,643,388)$
INTEREST REVENUE
GENERAL FUND RESERVE INVESTMENTS
Interest Earned on Investments 15,492$
POOLED INVESTMENTS
Interest Earned on Investments 204,291$
TOTAL INTEREST EARNED 219,783$
Data Source: Monthly Download of Transactions from US Bank Attachment 2
Council Agenda 05-07-2024 9.C-3
Packet Page 21
Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund City of Pismo Beach - Bank Account Proof of Cash for the month ending:3/31/2024 Bank Account Description Bank ID
Beginning
Balance Cash Receipts Disbursements Transfers-In Transfers-Out Ending
Balance
General Checking US Bank 3,875,302$ 3,215,844$ (4,992,286)$ 12,108,342$ (425,000)$ 13,782,202$ LAIF LAIF 26,033,457 - - - (6,000,000) 20,033,457 Total all Bank Accounts 29,908,759$ 3,215,844$ (4,992,286)$ 12,108,342$ (6,425,000)$ 33,815,659$ Fund Description Fund #
Beginning
Balance Cash Receipts Disbursements Transfers-In Transfers-Out Ending
Balance
General Fund
General Fund 1001-10101 6,475,682 5,533,326 (2,799,923) - - 9,209,084 General Fund-Reserve 1001-10105 371,006 15,519 - - - 386,525 Half Cent Sales Tax Fund 1002 1,783,546 390,417 - - - 2,173,962 Special Revenue Funds
Gas Tax Fund 2001 177,899 33,540 - - - 211,439 LTF - Streets 2002 271,729 (62) - - - 271,667 PEG Access Fund 2003 94,855 (321) - - - 94,534 Police Grant Fund 2004 169,175 (20,395) - - - 148,780 Housing In Lieu Fund 2005 114,421 31 - - - 114,452 LBID Fund 2006 2,300,488 125,254 (139,010) - - 2,286,732 Chapman House 2007 81,169 15,956 (28,288) - - 68,838 Capital Projects Funds
Capital Projects Fund 3001 597,035 1,156,608 (1,120,110) - - 633,533 Public Facilities Fund 3002 891 - - - - 891 Park Development Fund 3003 302,120 11,302 - - - 313,421 Circulation Fund 3101 531,593 7,874 - - - 539,468 Development Impact Fee Fund 3102 62,876 13,516 - - - 76,392 Developer Impact Fee Fund 3103 169,601 - - - - 169,601 Underground Utility Fund 3201 16,767 - - - - 16,767 Attachment 3
Council Agenda 05-07-2024 9.C-4
Packet Page 22
Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund City of Pismo Beach - Bank Account Proof of Cash for the month ending:3/31/2024 Fund Description Fund #
Beginning
Balance Cash Receipts Disbursements Transfers-In Transfers-Out Ending
Balance
Debt Service Funds
Public Finance Authority Fund 4001 - - - - - - Public Finance Authority Fund 4002 - - - - - - Freeway Foothills AD Fund 4101 776 - - - - 776 Spyglass AD Fund 4102 12,915 - - - - 12,915 Indio-El Portal AD Fund 4112 750 - - - - 750 Visalia Street AD Fund 4113 4,816 366 - - - 5,182 Enterprise Funds
Water Enterprise/Tax Fund 6101/6102 4,131,455 413,288 (230,363) - - 4,314,379 Water Construction Fund 6103 847,242 29,913 (29,911) - - 847,244 Water Expansion Fund 6104 880,610 12,143 - - - 892,753 Wastewater Enterprise Fund 6201 407,782 424,356 (394,203) - - 437,935 Wastewater Construction Fund 6202 1,660,830 3,950 (3,950) - - 1,660,830 Wastewater Expansion Fund 6203 2,017,444 19,417 - - - 2,036,862 LTF - Transit Fund 6301 28,661 - - - - 28,661 Pier Operations Fund 6401 (2,092) 5,583 (6,497) - - (3,007) Parking Fund 6501 1,981,414 320,914 (46,342) - - 2,255,986 Internal Service Funds
Technology Service Fund 7101 123,832 117,541 (64,621) - - 176,752 Motor Vehicle Fund 7201 3,135,613 122,056 (283,743) - - 2,973,925 Trust & Agency Funds
SLO County TMD 8201 85,907 99,637 (92,086) - - 93,457 Control Funds
Payroll Control Fund 9301 898,510 266,320 8,725 - - 1,173,555 Interest Control Fund 9302 1,694 16,235 - - - 17,929 Utility Billing Control Fund 9304 169,747 2,940 - - - 172,688 M/R Control Fund 9305 - - - - - - Total all cash funds 29,908,759 9,137,222 (5,230,322) - - 33,815,659 Attachment 3
Council Agenda 05-07-2024 9.C-5
Packet Page 23
Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund City of Pismo Beach - Bank Account Proof of Cash for the month ending:3/31/2024 Fund Description Fund #
Beginning
Balance Cash Receipts Disbursements Transfers-In Transfers-Out Ending
Balance
INVESTMENTS
General Fund
General Fund Money Mrkt Csh 1001-10108 0 - - - - 0 General Fund - CD's 1001-10404 6,605,033 - - - - 6,605,033 General Fund - Fed Agency 1001-10405 4,049,000 - - - - 4,049,000 GF - Half Cent Sales Tax CD's 1002-10404 735,000 - - - - 735,000 GF - Half Cent Sales Tax Fed Age1002-10405 500,000 - - - - 500,000 GF - Half Cent Sales Tax Mny Mkt1002-10108 0 - - - - 0 GF Reserve Money Mkt Cash 1001-10109 0 - - - - 0 GF Reserve - CD's 1001-10403 3,182,967 - - - - 3,182,967 GF Reserve - Fed Agency 1001-10402 2,208,000 - - - - 2,208,000 GF Reserve - Building 1001-10406 202,000 - - - - 202,000 GF Reserve - Building - Federal A1001-10146 298,000 - - - - 298,000 GF Reserve - Risk Mgmt - CD's 1001-10407 150,000 - - - - 150,000 GF Reserve - Risk Mgmt - Fed Ag1001-10140 50,000 - - - - 50,000 GF Corp Bond - Pooled 1001-10141 529,143 - - - - 529,143 GF Corp Bond - Reserve 1001-10145 500,000 - - - - 500,000 GF Municipal Bonds Pooled 1001-10142 897,022 - - - - 897,022 GF Municipal Bonds Reserve 1001-10143 1,018,013 - - - - 1,018,013 Risk Mgmt Muni Bonds Reserve 1001-10144 50,000 - - - - 50,000 Half Cent Sales Tax - Pooled 1002-10141 - - - - - - Half Cent Sales Tax - Muni Bond 1002-10142 - - - - - - GF CREB's Fiscal Agent 1001-10515 (0) - - - - (0) GF Treasury Note 1001-10410 10,961,122 (4,957,131) - - - 6,003,991 Special Revenue Funds
Housing In Lieu - Mny Mkt Csh 2005-10108 (0) - - - - (0) Housing In Lieu Fund 2005-10404 385,000 - - - - 385,000 Housing In-Lieu Fed Agencies 2005-10405 140,000 - - - - 140,000 Housing In-Lieu Treasury Note 2005-10410 - - - - - - Capital Projects Funds
Park Develop. Fund Mny Mkt 3003-10108 - - - - - - Park Development Fund 3003-10404 - - - - - - Park Develop Federal Agencies 3003-10405 - - - - - - Circulation Fees Mny Mkt 3101-10108 - - - - - - Circulation Fees 3101-10404 - - - - - - Develop. Impact Fee Mny Mkt 3102-10108 0 - - - - 0 Development Impact Fee Fund 3102-10404 245,000 - - - - 245,000 Impact Fees Federal Agencies 3102-10405 - - - - - - Attachment 3
Council Agenda 05-07-2024 9.C-6
Packet Page 24
Attachment 3: For City Pooled Funds B - Summary of monthly transactions by fund City of Pismo Beach - Bank Account Proof of Cash for the month ending:3/31/2024 Fund Description Fund #
Beginning
Balance Cash Receipts Disbursements Transfers-In Transfers-Out Ending
Balance
INVESTMENTS
Debt Service Funds
Public Fin Fiscal Agent-Pier 4002-10510 584 2 - - - 586 Public Fin Fiscal Agent-CREBs 4002-10515 1,017 4 - -- 1,021 Visalia Street CD's 4113-10404 100,000 - - - -100,000 Enterprise Funds
Water Fund Money Mrkt Csh 6101-10108 0 - - - - 0 Water Fund CD's 6101-10404 735,000 - - - - 735,000 Wtr Fund Federal Agencies 6101-10405 2,155,000 - - - - 2,155,000 Wtr Fund Corp Bond - Pooled 6101-10141 - - - - - - Water Fund Treasury Note 6101-10410 1,015,796 (15,796) - -- 1,000,000 Water Construction Money Mkt 6103-10108 (0) - - - -(0) Water Construction 6103-10404 504,363 - - - -504,363 Wastewater Fund Money Market C6201-10108 0 - - - -0 Wastewater Fund CD's 6201-10404 490,000 - - - -490,000 Wastewater Fund Fed Agencies 6201-10405 2,100,000 - - - -2,100,000 WWtr Fund Corp Bond - Pooled 6201-10141 1,062,000 - - - -1,062,000 WWtr Fund Treasury Note 6201-10410 1,015,796 (15,796) - -- 1,000,000 Parking Enterprise Money Mrkt 6501-10108 (0) - - - -(0) Parking Fund Corp Bond-Pooled 6501-10141 500,000 - - - -500,000 Parking Enterprise 6501-10404 980,000 245,000 - -- 1,225,000 Parking Fund Federal Agencies 6501-10405 1,750,000 - - - -1,750,000 Parking Fund Treasury Note 6501-10410 899,666 (899,666) - - - - Internal Service Funds
MVR Fund Money Mrkt Csh 7201-10108 0 - - - - 0 MVR Fund CD's 7201-10404 1,526,000 - - - - 1,526,000 MVR Fund Federal Agencies 7201-10405 500,000 - - - - 500,000 CalPers Benefit Trust
OPEB Trust Account 8101-10408 5,133,541 367,317 - - - 5,500,858 Total all Investments 53,174,061$ (5,276,065)$ -$ -$ -$ 47,897,996$ Total all Funds 83,082,820$ 3,861,158$ (5,230,322)$ -$ -$ 81,713,656$ Attachment 3
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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.D
Meeting Date: May 7, 2024
TITLE:
Fiscal Year 2024 Third Quarter Financial Status Report
RECOMMENDATION:
No action recommended; for information only.
EXECUTIVE SUMMARY:
This report updates the City Council on the Fiscal Year (FY) 2023-24 ending on June 30, 2024, or FY 2024, financial status based on actual revenues and expenditures during the first nine months of the fiscal year.
Overall, the City of Pismo Beach’s funds are projected to be financially stable, with sufficient fund balances. The FY 2024 ending General Fund unassigned fund balance is projected to be $5.68 million, which is $10.15 million less than the FY 2023 ending unassigned fund balance. This decrease is largely due to the projected spending of various large capital projects, including $2.87 million for the Public Safety Facility project, $2.50 million for the current Paving project, $2.67 million for the James Way Beautification project, and $1.73 million for the Chumash and Palisades Parks improvements projects, drawing down from the beginning unassigned fund balance.
For most of the City’s other funds, revenues and expenditures are projected to be on budget and the ending fund balances are in line with the FY 2025 Adopted Budget beginning fund balances. In all the funds, there are sufficient fund balances and projected revenues to cover projected expenditures.
The following sections provide details of the General Fund financial picture, followed by a summary and highlights of the City’s other funds.
I. General Fund Budget Summary
In summary, based on early projections from the first nine months of the fiscal year, the General Fund is projected to end FY 2024 with a $5.68 million unassigned fund balance.
The FY 2024 projected $5.68 million unassigned fund balance is $2.86 million greater than the FY 2024 Revised Budget. This increase is attributable to $2.51 million in additional projected operating expenditure savings compared to the Revised Budget and $716 thousand additional projected operating revenues compared to the Revised Budget, offset by $357 thousand fewer projected one-time revenues compared to the Revised Budget.
The unassigned fund balance is used to pay for future one-time investments included in the FY 2024 and FY 2025 Budgets and in the 10-year Capital Improvement Plan.
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In addition to the General Fund unassigned fund balance, the General Fund includes the Budget Stabilization Reserve set-aside of $2.00 million and a Transient Occupancy Tax (TOT) 1% set-aside of $1.00 million. The TOT 1% set-aside represents the amount collected for the additional 1% of gross lodging revenues to be allocated for the Public Safety Facility project.
Table 1 is a summary of the FY 2023 actuals and the FY 2024 General Fund revised budget, projected actuals, and a variance comparing the budget to projected actuals.
Table 1: FY 2024 General Fund Budget Summary
II. General Fund Beginning Fund Balance
The General Fund beginning fund balance is comprised of two different components:
The unassigned fund balance, which are funds that are not committed for any specific purpose and could be used for various one-time projects, and The committed or carryforward fund balance, which are funds that are committed for a specific budgeted use.
As illustrated in Table 2, the FY 2024 Adopted Budget General Fund beginning fund balance was projected to be $12.26 million. Based on changes during FY 2023 and carrying forward fund balance to cover previously budgeted but not-yet-spent expenditures, the actual fund balance is revised to $25.03 million. This includes $19.24 million of unassigned fund balance and $5.80 million of carryforward fund balances.
AB CD = C - B
($ thousands)
FY 2023
Actuals
FY 2024
Revised
Budget
FY 2024 Year-
End Projected
Actuals
Variance
(Actuals-
Budget)
Unassigned Fund Balance 8,469$ 19,236$ 19,236$ -$ Committed Fund Balance 17,259 5,798 5,798 -
a Beginning Fund Balance 25,727 25,034 25,034 -
b Operating Revenues 32,544 31,724 32,440 716
c Operating Expenditures 24,665 30,210 27,702 (2,507) d = b - c Net Operating Surplus/(Deficit) 7,879 1,514 4,737 3,224 e One-time Revenues 337 709 352 (357)
f One-time/Capital Expenditures 8,098 22,824 13,510 (9,314) g =
a+d+e-f Ending Fund Balance 25,845$ 4,433$ 16,613$ 12,181$ Unassigned Fund Balance 15,829$ 2,822$ 5,681$ 2,867$ Committed Fund Balance 5,798 - 9,314 9,314
Contribution to Reserves 811 (1,728) (1,728) -
Budget Stabilization Set-Aside 2,000 2,000 2,000 -
TOT 1% Set-Aside for PSF 1,407 1,338 1,346 8
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Table 2: FY 2024 General Fund, Beginning Fund Balance
III. General Fund Reserve
The City maintains various General Fund reserves totaling $6.05 million for emergency operations, building depreciation, and risk management. These reserves are crucial to avoid disrupting the City’s operations following unanticipated events. The reserves are shown in Table 3, followed by a summary of each reserve.
Table 3: General Fund Reserves
Reserve Amount ($ thousands)
General Fund 25% Reserve $5,296
City Building Reserve 500
Risk Management Reserve 250
Total $6,046
General Fund 25% Reserve
The City has adopted a fiscal policy to fund a General Fund Reserve of 25% of General Fund budgeted annual operating expenditures for FY 2024. The General Fund reserve should be equal to $7.55 million, which is 25% of the total FY 2024 budgeted annual operating expenditures of $30.21 million. On October 17, 2023, the City Council adopted Resolution R-2023-081 allocating $2.00 million of the General Fund Reserve to support the Public Safety Facility project. Currently, the General Fund Reserve is $5.28 million, which reflects $2.00 million already allocated to the Public Safety Facility project. Of this $5.28 million, $4.91 million is invested in various securities and $387 thousand is pending investment. This reserve allows the City to maintain its operations for a few months in the event that an emergency or disaster impacts the City’s finances, and can also be used for emerging opportunities. The City Treasurer will be investing an additional $272 thousand during FY 2024 to support the additional amount required to meet the 25% of the total FY 2024 budgeted annual operating expenditures. Based on the projected FY 2024 ending unassigned fund balance that is $2.86 million greater than budget, the City Treasurer may reach out to Council to restore all or part of the General Fund 25% Reserve towards the end of FY 2024 or during FY 2025 to get back to fully funding the General Fund Reserve.
($ thousands)
Adopted
Budget
Budget
Revisions Actuals
Unassigned Fund Balance 12,263$ 6,973$ 19,236$
Capital Funds Carryforward 5,114 5,114
Purchase Orders Carryforward 615 615
Prepayment Carryforward 69 69
Total Fund Balance 12,263$ 12,771$ 25,034$
$5,798
Carryforward
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City Building Reserve
The City Council created a City Building Reserve of $500 thousand, for the maintenance and upkeep of City facilities and buildings, particularly if funds are not available. This amount is equal to five years of annual depreciation on City-owned buildings.
Risk Management Reserve
The City Council established a Risk Management Reserve, contributing $50 thousand each year to the budget for unanticipated risk management costs. This reserve has a balance of $250 thousand, which is the maximum contribution level.
IV. General Fund Revenues
The FY 2024 Revised Budget revenues total $32.43 million. FY 2024 projected actual revenues are $32.79 million, or $360 thousand greater than budget. Compared to the previous year, FY 2024 projected actual revenues are $89 thousand, or 0.3% less than FY 2023. This decrease over the prior year is largely due to a projected reduction of $674 thousand in Transient Occupancy Tax revenues compared to the previous fiscal year, offset by a projected increase of $883 thousand in Other Revenues to reflect additional overhead charges to other funds and additional interest income compared to the previous fiscal year. Table 4 summarizes the General Fund revenue budget and projected actual revenues for FY 2024, which is followed by a brief discussion of the top three FY 2024 projected actual sources of revenues.
Table 4: FY 2024 General Fund Revenue Budget and Projected Actuals A B C D = C - B E = C - A F = C/A-1
($ thousands)
Revenue Category
FY 2023
Actuals
FY 2024
Revised
Budget
FY 2024
Projected
Actuals
Variance
(Projected
Actuals -
Revised
Bdgt)
Variance
(FY24 Proj
Act - FY23
Actuals)
% Variance
(FY24 Proj
Act v FY23
Actuals)
Proj
Actual
% of
Total
Transient Occupancy Tax 15,481$ 14,715$ 14,807$ 92$ (674)$ -4.4% 45.2% Property Related Taxes 7,046 7,009 7,079 70 32 0.5% 21.6% Sales and Use Tax 4,041 3,835 3,847 12 (195) -4.8% 11.7% Other revenues 2,121 2,615 3,004 389 883 41.7% 9.2% Permits 1,336 1,241 1,316 75 (19) -1.5% 4.0%
Departmental Revenues 865 893 857 (36) (8) -0.9% 2.6% Franchise Taxes 800 698 800 103 - 0.0% 2.4% Business Tax 291 244 291 47 - 0.0% 0.9% Transfers In 140 140 140 - - 0.0% 0.4%
Other Taxes 170 139 139 - (31) -18.1% 0.4%
Other Finan Sources 114 87 87 - (26) -23.1% 0.3%
Intergovernmental Revenue 85 70 49 (21) (37) -43.0% 0.1% Grants 54 37 25 (12) (30) -54.7% 0.1%
Total Operating Revenues 32,544$ 31,724$ 32,440$ 716$ (104)$ -0.3% 98.9% One-time Revenues 337 709 352 (357) 15 4.5% 1.1% Total Revenues 32,880$ 32,432$ 32,792$ 360$ (89)$ -0.3% 100.0%
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Transient Occupancy Tax (TOT) revenues are projected to be $92 thousand greater than budget, but are projected to be $674 thousand, or 4.4%, less than the previous year’s TOT revenues. TOT revenues are generated by charging 11% of the rent for all lodging businesses that provide occupancy for a period of 30 consecutive days or less. The decline in TOT revenue is partly attributed to a 4.1% drop observed over the first eight months of the fiscal year, with an anticipated annual decrease of 4.3% by the end of FY 2024 compared to FY 2023. Notably, adverse weather conditions in February contributed to a significant 18.4% reduction in revenue for the month.
Conversely, projections for March show a recovery, with revenues expected to be
17.0% higher than in March of the previous year with a busy spring break. April has also been impacted by rainy weather, leading to an expected 15.0% decline in revenue compared to April 2023. Looking ahead to the final months of the fiscal year, revenue in May and June is projected to be 5.0% lower than the same period last year based on projected occupancy and room rates. Chart 1 provides a detailed comparison of TOT revenues collected in FY 2024 relative to FY 2023, illustrating these trends.
Chart 1. TOT Revenues FY 2024 compared to FY 2023
Analysis from Smith Travel Research Inc., which specializes in providing competitive benchmarking and research services to the hotel industry, reveals that the reduction in Transient Occupancy Tax (TOT) revenues primarily stems from lowered average daily room rates and a slight decrease in occupancy rates during the first eight months of FY 2024. During this period, the average daily rate decreased by 2.0% compared to the same period in FY 2023. However, occupancy rates experienced a slight improvement, increasing by 0.3% compared to the same timeframe in the previous fiscal year. Based on these trends, staff anticipates that TOT revenues will total $14.81 million for FY 2024. This figure not only represents a $92,000 surplus over the $-
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
TO
T
A
m
o
u
n
t
FY 2024
FY 2023
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budgeted amount but also a 4.4% or $674,000 decrease from the previous year's TOT revenues.
Property-related tax revenues are projected to be $70 thousand greater than budget and $32 thousand, or 0.5%, greater than previous year’s property-related tax revenues. There are two sources of property-related tax revenues:
o Property Tax Assessed Value revenues: equivalent to 1% of assessed values o Property Tax In-Lieu of Vehicle License Fees: 1% tax on the market value of a registered vehicle.
Assessed value cannot increase by more than 2.0% per year per Section 2 of Article XIIIA of the California Constitution. The San Luis Obispo County Auditor-Controller’s office is projecting assessed values to increase by 2.0%. Sales and Use Tax revenues are projected to be $12 thousand greater than budget and $195 thousand, or 4.8%, less than the prior year. Sales and use tax revenues are made up of two sources:
o Bradley-Burns uniform sales and use tax, which is a 1.0% tax on taxable sales within the City.
o Public safety tax, which is a 0.5% tax on taxable sales for specified public safety purposes.
Based on actual sales tax received to date, the Bradley-Burns uniform sales and use tax is expected to be $14 thousand greater than budget, but $189 thousand less than the prior year. Based on actual revenues received to date and projections from the City’s sales tax consultant, City staff estimates that Bradley-Burns sales and use tax revenues will be $3.72 million. This reflects a projected decline in sales and use tax receipts compared to FY 2023 for the following industry groups: autos & transportation, fuel & service station, and food & drugs. These declines are offset by growth in sales and use tax receipts from restaurants & hotels and general consumer goods compared to the previous fiscal year. Chart 2 illustrates sales tax revenues received in FY 2023 and FY 2024 by the month in which the sales tax was collected.
Chart 2. Bradley Burns Sales Tax Revenues FY 2024 compared to FY 2023 $-
$100,000
$200,000
$300,000
$400,000
$500,000
Sa
l
e
s
T
a
x
A
m
o
u
n
t
FY 2023
FY 2024
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The public safety sales tax revenues are budgeted at $125 thousand in FY 2024 and are anticipated to be $2,500 less than budget. This FY 2024 projected amount is $5 thousand less than the FY 2023 public safety sales tax revenues and follows the same trends as the Bradley Burns uniform sales and use tax revenues.
In summary, sales and use tax revenues are projected to be $12 thousand greater than budget, but are projected to be $195 thousand, or 4.8%, less than the prior year.
V. General Fund Expenditures
The FY 2024 Revised Budget expenditures total $53.03 million and projected actual expenditures total $41.21 million. Operating expenditures are projected to be $2.51 million less than the Revised Budget based on the first three quarters of expenditures.
One-time capital costs are projected to be $9.31 million less than budget largely attributable to the timing of cash flow for the Paving project that is anticipated to be completed in FY 2025 and the Public Safety Facility project that is projected to continue into FY 2025. These savings will be carried forward to next fiscal year and do not contribute to an increase in fund balance.
Total operating expenditures for the first three quarters should be about 75% of the budget, assuming the timing of expenditures is consistent throughout the year. This year, about 64% of the operating budget has been spent in the first three quarters, while only 12% of the one-time capital expenditure budget has been spent in the first three quarters.
These one-time costs are dependent on the timing of construction of these projects. Table 5 provides details of actuals as a percentage of budget by expenditure category, followed by explanations of the large variances from the 75% mark.
Table 5. FY 2024 General Fund Expenditure Budget and Projected Actuals A B C D = C/B E F = B - E
($ thousands)
Expenditure Category
FY 2023
Actuals
FY 2024
Revised
Budget
FY 2024
Third
Quarter
Actuals to
Date
Third Quarter
Actuals % of
Budget
FY 2024
Projected
Actuals
Variance
(Revised
Bdgt -
Projected
Actuals)
Proj
Actual
% of
Total
Salaries & Wages 8,350$ 10,046$ 6,859$ 68%8,916$ 1,130$ 21.6% Benefits 5,144 5,580 4,242 76%5,140 440 12.5% Professional Services 4,267 4,887 2,368 48%4,354 533 10.6% Contract Services 2,805 3,711 2,400 65%3,381 330 8.2% Operations & Maintenance 1,367 1,647 1,055 64%1,573 74 3.8% Other Expenses 980 1,504 967 64%1,504 - 3.6% Other Financing Uses 143 1,036 114 11%1,036 - 2.5% Transfers Out 717 811 494 61%811 - 2.0% Retiree Medical Insurance 443 431 328 76%431 - 1.0% Debt Service 432 429 305 71%429 - 1.0% Capital Projects 17 127 118 0%127 - 0.3% Total Operating Expenditures 24,665$ 30,210$ 19,248$ 64% 27,702$ 2,507$ 67.2% One-time Capital Costs 8,098 22,824 2,721 12% 13,510 9,314 32.8% Total Expenditures 32,763$ 53,034$ 21,970$ 41% 41,213$ 11,821$ 100.0%
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Some operating costs that do not reflect consistent monthly spending include:
Professional Services, which reflects that 48% was spent in the first three quarters.
These costs are based on the timing of work performed and are not set amounts per month.
Other Financing Uses, which includes a $1.00 million general contingency budget and reflects that only 11% of the budget has been spent in the first three quarters. This budget is allocated over time based on unanticipated costs that come up throughout the year and are not a consistent allocation of expenditures. Transfer Out to other funds, which includes support for the Chapman Estate Fund and Pier Enterprise Fund and reflects that only 61% of the budget has been spent in the first three quarters. The majority of these transfers are scheduled for the end of FY 2024, pending the need for General Fund support in those funds.
VI. General Fund Contingency Budgets
General Contingency
The FY 2024 Adopted Budget included $1.00 million in the General Fund general contingency account that may be used for various one-time items that come up during the year. Of this amount, $91,200 thousand of this appropriation was allocated. Details of the allocation are provided in Table 6.
Table 6: FY 2024 General Fund General Contingency
Council Contingency
The FY 2024 Adopted Budget also includes a $5 thousand City Council contingency appropriation that may be used for various one-time items that come up during the year.
None of this contingency has been allocated in the first three quarters of FY 2024.
VII. Next Level Budget
The FY 2024 Adopted Budget includes $400 thousand in the General Fund non- department contract services account that may be used for various “next-level” contract services. To date, none of this budget has been formally allocated during the first three quarters of FY 2024. However, staff plans to allocate approximately $160,000 to support enhancements of various services, including additional cleaning of sidewalks, restrooms, and other facilities managed by the Public Works Facilities Division. Additionally, staff plans to allocate approximately $40,000 to equip Public Works trucks with essential tools, Beginning Balance July 1, 2023 1,000,000$
Appropriations
Planning Services 91,200
Total Appropriations 91,200
Ending Balance as of March 31, 2024 1,091,200$
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enhancing their capacity for maintaining government buildings, parks, and streets. And finally, staff is proposing to add a transit van to the replacement fleet to support Recreation events, for an estimated one-time cost of $60,000 and ongoing financial contributions for a future replacement starting in FY 2026. The total of these estimated allocations is $260,000, leaving $140,000 remaining as illustrated in Table 7. Staff will appropriate these funds in the mid-cycle budget adjustments currently scheduled for August 6, 2024.
Table 7: FY 2024 Next Level Service
Beginning Balance July 1, 2023 400,000$
Estimated Appropriations
Additional cost and expansion of sidewalk cleanings, restrooms, and other facilities (160,000)
Tools for Public Works trucks (approximate)(40,000)
Recreation transit van (estimate)(60,000)
Total Estimated Appropriations (260,000)
Ending Balance as of March 31, 2024 140,000$
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VIII. Other Funds
Table 8 reflects fund balance, projected revenue, and projected expenditure activity in the City’s other funds. For most funds, revenues and expenditures are projected to be on budget and the ending fund balances are in line with the FY 2025 Adopted Budget beginning fund balances.
Table 8. Other Funds
AB CD = B ‐ CE = A + DFG = E ‐ F
Fund
Type Fund Fund Title
Beginning
Fund Balance
Projected
Actual Revenue
Projected Actual
Expenditure Net Rev ‐ Exp
Projected
Ending Fund
Balance Carryforward
Unrestricted
Fund Balance
General Operating Funds
1001 General Fund 25,033,776 32,791,918 41,212,601 (8,420,683) 16,613,093 9,313,703 9,026,965 1002 Half‐Cent Sales Tax Fund 3,205,576 1,998,765 1,827,888 170,876 3,376,452 1,414,000 1,962,452 Special Revenue Funds
2001 Gas Tax Fund 300,722 423,509 460,737 (37,228) 263,493 ‐ 263,493 2002 Local Transportation 415,770 196,658 305,535 (108,877) 306,893 ‐ 306,893 2003 PEG Fund 73,720 29,534 3,849 25,685 99,405 37,887 61,518 2004 Grants‐NonCapital 62,847 187,233 231,452 (44,219) 18,627 ‐ 18,627 2005 Housing In Lieu Fee 4,047,150 60,132 2,653,130 (2,592,998) 1,454,153 ‐ 1,454,153 2006 LBID Operations 719,530 1,362,593 1,507,896 (145,302) 574,228 16,000 558,228 2006 LBID Improvements 495,132 1,362,593 15,083 1,347,511 1,842,642 1,200,000 642,642 2007 Chapman Estate 78,323 973,429 1,018,369 (44,940) 33,383 (4,405) 37,788 Capital Project Funds
3001 Capital Projects 738,719 18,548,451 18,519,265 29,185 767,904 767,904 ‐ 3002 Public Facilities Fund 844 ‐ ‐ ‐ 844 ‐ 844 3003 Park Development Fund 336,724 44,738 85,437 (40,699) 296,025 145,029 150,996 3101 Circulation Fees 556,181 35,886 89,999 (54,112) 502,069 ‐ 502,069 3102 Impact Fees 491,886 62,210 250,879 (188,669) 303,217 ‐ 303,217 3103 Developer Impact Fee 56,352 ‐ ‐ ‐ 56,352 ‐ 56,352 3201 Underground Utility Fnd 15,890 ‐ ‐ ‐ 15,890 ‐ 15,890 Debt Service Funds
4001 PFA Debt Service ‐ 3,368,380 3,368,380 ‐ ‐ ‐ ‐ 4002 PF Agency Debt 893 704,530 704,530 ‐ 893 ‐ 893 4101 Reass 92‐1 Fwy Fthlls 735 9 ‐ 9 744 ‐ 744 4102 Spyglass 92‐412,239 147 ‐ 147 12,386 ‐ 12,386 Enterprise Funds
6101 Water Enterprise 8,492,793 6,159,606 5,967,560 192,047 8,684,840 8,684,840 ‐ 6102 Water Tax (Lopez/State) 296,671 2,127,000 2,395,720 (268,720) 27,951 27,951 ‐ 6103 Water Construction Fund 1,257,703 431,400 482,138 (50,738) 1,206,965 1,206,965 ‐ 6104 Water Expansion Fund 805,404 51,941 ‐ 51,941 857,344 857,344 ‐ Water Enterprise Funds 10,852,570 8,769,947 8,845,417 (75,470) 10,777,100 10,777,100 ‐ 6201 Wastewater Treatment 9,219,597 6,227,248 14,182,383 (7,955,135) 1,264,462 1,264,462 ‐ 6202 Wastewater Capital Proj 1,349,394 3,634,263 341,413 3,292,850 4,642,244 4,642,244 ‐ 6203 Wastewater Expansion 1,863,327 93,861 ‐ 93,861 1,957,188 1,957,188 ‐ Wastewater Enterprise Fund 12,432,318 9,955,372 14,523,796 (4,568,424) 7,863,894 7,863,894 ‐ 6301 Local Trans Transit 27,158 325 ‐ 325 27,483 27,483 ‐ 6401 Pier Enterprise 97,885 81,151 146,857 (65,706) 32,178 32,178 ‐ 6501 Parking Enterprise 5,846,885 3,130,276 7,430,587 (4,300,310) 1,546,575 1,546,575 ‐ Internal Service Funds
7101 Technology Service Fund 114,799 1,717,313 1,784,948 (67,636) 47,163 ‐ 47,163 7201 Motor Vehicle Fund 4,681,754 1,590,957 3,109,109 (1,518,152) 3,163,602 ‐ 3,163,602
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Highlights of Other Funds
Half-Cent Sales Tax Fund (1002)
The Half-Cent Sales Tax Fund is part of the General Fund which includes a 0.50% transaction sales and use tax. This tax was approved by Pismo Beach voters in June 2008, effective October 1, 2008, and renewed in November 2014, which extends the tax to March 31, 2027. The tax proceeds are used exclusively for infrastructure projects. This fund started the year with a $3.21 million beginning fund balance (after including carryforward fund balances). Projected actual revenues are $2.00 million. Projected actual expenditures are $1.83 million. After accounting for a $1.41 million carryforward of project budgets, there is a projected $1.96 million projected ending fund balance in this fund. Table 9 lists the budgeted projects and projected actual expenditures in this fund for FY 2024.
Table 9: Half-Cent Sales Tax Fund FY 2024 Budgeted Projects and Projected Actuals
Gas Tax Fund (2001)
The Gas Tax Fund is a Special Revenue Fund whose revenues include State gas tax funds based on the State’s apportionment formula. These funds are used for City street light costs, City traffic signal maintenance costs, and street repairs and/or capital improvements. This fund started the year with a $301 thousand beginning fund balance (after including carryforward fund balances). Projected actual revenues are $424 thousand and projected actual expenditures are $461 thousand, including $319 thousand for the Paving project and $140 thousand for General Fund street light electricity costs.
Based on the projected revenues and expenditures for the current year, there is a $263 thousand projected ending fund balance in this fund that could be used for future street paving projects.
Local Transportation Fund (2002)
The Local Transportation Fund is a Special Revenue Fund whose funds are used for construction and maintenance of streets, bluff protection, and beach access. Revenues for this fund consist of State Transportation Development Act funds, which remain after funds are allocated for regional transit, local transit, and Ride-on services. Projected actual revenues are $197 thousand and projected actual expenditures are $306 thousand, primarily for the Paving Project. Based on the projected revenues and Projects
FY 2024
Budget
FY 2024 Projected
Actuals
Paving Project $ 1,527,888 $ 1,527,888
Shell Beach Parking Lot 1,000,000 - Signalize Bello/Price Canyon Rd 389,000 - FY 2025 Paving project 300,000 300,000 City Hall Parking Lot 25,000 - Total $ 3,241,888 $ 1,827,888
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expenditures for the current year, there is $307 thousand projected ending fund balance for this fund that could be used for future street paving projects.
Public Education Government Fund (2003)
The Public, Educational, and Governmental (PEG) Access Fee Fund includes revenues from a PEG Access Fee collected from cable television providers (i.e. Charter Communications) with franchise operations within city limits. Expenditures include capital costs related to governmental cable broadcasting and equipment. Based on projected revenues of $30 thousand, projected expenditures of $4 thousand and accounting for a carryforward of $38 thousand, the PEG Fund is expected to end the year with a $62 thousand fund balance.
Housing In-Lieu Fund (2005)
The Housing In-Lieu Fund is a Special Revenue Fund with revenues from a development impact fee paid to the City as an alternative to the production of affordable housing (housing in-lieu fee). These funds are used for the acquisition, construction, or rehabilitation of affordable housing. The fund is projected to have $1.45 million of funds available by the end of the year for this purpose.
Lodging Business Improvement District Fund (2006) Operations The Pismo Beach Lodging Business Improvement District (LBID) Fund for operations reflects a 1% assessment on transient rents at transient lodging providers as revenues and budgeted expenditures to promote Pismo Beach lodging businesses. The LBID Fund started the year with a $720 thousand beginning fund balance. City staff projects that LBID assessment revenues and interest earnings will be $1.36 million. Operating expenditures are projected at $1.51 million. The fund is expected to end the year with a $558 thousand unrestricted fund balance.
LBID Fund (2006) Improvements
The LBID Fund for improvements includes a 1% assessment to support visitor-serving physical improvements. The LBID Fund started the year with a $495 thousand beginning fund balance. City staff projects that LBID assessment revenues and interest earnings will be $1.36 million. Budgeted expenditures include $1.20 million for the Addie Street Restroom Improvement project, $15 thousand for replacement beach wheelchairs and beach swing replacement projects. Projected actual expenditures are $15 thousand for the beach wheelchairs and swings. The fund is expected to end the year with a $1.84 million unrestricted fund balance. Of this amount, the $1.20 million for the Addie Street Restroom Improvement project will be carried forward to next year, leaving a projected $643 thousand ending available balance. This amount plus the FY 2025 projected assessment revenues are anticipated to support future visitor-serving physical improvements.
Chapman Estate Fund (2007)
The Chapman Estate Fund reflects donations or other contributions for the Chapman Estate as revenues and ongoing maintenance and one-time infrastructure improvements to the Chapman Estate as expenditures. The fund started the year with $78 thousand and
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is expected to receive $973 thousand in revenues, including $857 thousand from the General Fund for Chapman Estate improvements project and $100 thousand from the General Fund to support operations, and $15 thousand from private event revenues.
Projected actual expenditures are $1.02 million, including $857 thousand for the Chapman Estate improvements project, $119 thousand for operating costs of the home and grounds and monthly maintenance costs for utilities and gardening, and $42,500 for a condition assessment and appraisal of the property. Staff plans to come back to Council at the mid-cycle budget update in August 2024 to appropriate the funds for the condition assessment and appraisal. The remaining projected ending balance of this fund is $38 thousand.
Park Development Fund (3003)
The Park Development Fund is a Capital Project Fund with Quimby Act (park development in-lieu) fees and Impact Fees as funding sources to support construction costs of new parks and park lands, and the enhancement of existing parks to serve new development. The fund started the year with $337 thousand and is projected to receive $45 thousand in impact fee and permit revenues. Projected actual expenditures total $85 thousand and include the projects in the following table. Table 10 lists the budgeted projects in this fund for FY 2024.
Table 10: Park Development Fund FY 2024 Budgeted Projects The fund is expected to end the year with a $151 thousand ending fund balance.
Water Enterprise Fund (6101)
The Water Enterprise Fund is an Enterprise Fund consisting of revenues from water billings and expenditures for: contract meter reading; direct water services and supplies; on-going inspection, repair, and maintenance of the City’s wells, tanks, booster stations, hydro-pneumatic system, and water distribution system components; water conservation efforts; and ensuring that a safe, drinkable supply of water is provided to Pismo Beach.
Water revenues are projected to be $6.16 million and expenditures are projected to be $5.97 million.
The projected ending fund balance for the Water Enterprise Fund is $8.68 million, which is allocated for future water system capital costs. Note that the Water Enterprise Fund also includes the Water Tax, Water Construction, and Water Expansion Funds and the projected ending fund balance across all these funds is $10.78 million.
Projects
FY 2024
Budget
FY 2024
Projected
Actuals
Price Historic Park/ Meherin House 85,029$ -$
Palisades and Chumash Park Improvements 80,000 80,000 South Palisades Outdoor fitness equipment/trail 60,000 - Overhead costs 5,437 5,437
Total 230,466$ 85,437$
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Wastewater Treatment Fund (6201)
The Wastewater Treatment Fund is an Enterprise Fund consisting of revenues from wastewater billings and expenditures for direct services and supplies; operation and maintenance of the City’s wastewater treatment plant and the wastewater collection facilities including pumps and pipelines; and ensuring the City’s treatment and collection system operations meet City, federal, and state laws and requirements. Wastewater revenues are projected to be $6.23 million and expenditures are projected to be $14.18 million. The ending fund balance is $1.26 million which is already allocated for other wastewater capital projects. Note that the Wastewater Treatment Funds also include the Wastewater Capital Fund and the Wastewater Expansion Fund. The total combined projected ending fund balance across all these funds is $7.86 million.
Pier Enterprise Fund (6401)
The Pier Enterprise Fund includes revenues from a concession lease on the Pier and expenditures for repair and maintenance of the Pier, Promenade, and nearby facilities.
The beginning fund balance is $98 thousand and projected revenues are $81 thousand, from revenues from the Pier Airstreams. Projected expenditures include $147 thousand for Pier and Pier Plaza operating costs. The Pier Enterprise Fund is expected to end the year with a $32 thousand ending fund balance.
Parking Enterprise Fund (6501)
The Parking Enterprise Fund is an Enterprise Fund consisting of revenues from parking kiosks, parking citations, and parking permits to support a Parking Supervisor and Parking Enforcement Officer, implement the goals of the Pismo Beach Parking Management Plan, to administer existing parking more efficiently, provide more downtown parking, improve enforcement and parking management, and provide funds for future parking structures.
Revenues are projected to reach $3.13 million.
As shown in Table 11, in addition to operating expenditures, the budget includes $6.85 million for one-time projects, including $4.00 million for the Public Safety Facility project, $1.31 million for the purchase of property to increase the City’s parking inventory, $1.16 million for the Police Department Parking Division Substation, $292 thousand for additional parking meters on Price Street, $88 thousand for Addie Street Parking and Access Improvements, $4 thousand for a radio system upgrade and reliability project, and $1 thousand for other projects. Of these projects, staff projects $6.54 million will be spent during FY 2024 while the other projects are delayed. The FY 2024 projected ending fund balance is $1.55 million.
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Table 11: Parking Enterprise Fund FY 2024 Budgeted Projects Motor Vehicle Replacement Fund (7201)
The Motor Vehicle Replacement (MVR) Fund is an Internal Service Fund that funds the City’s motor vehicle operations and maintenance and motor vehicle replacements for various City departments. These costs are funded by accumulated fund balance, transfers from other funds, and motor vehicle rental charges to other funds. The MVR Fund started the year with a $4.68 million beginning fund balance. The FY 2024 projected ending fund balance is $3.16 million, which are accumulated funds necessary to fund future replacements.
Conclusion and Recommendation
Staff recommends that Council receive this report as information only.
FISCAL IMPACT:
There is no fiscal impact from receiving this report as it is information only.
ATTACHMENTS:
None
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:
Projects
FY 2024
Budget
FY 2024 Projected
Actuals
Public Safety Facility 4,000,000$ 4,000,000$
Parking Property 1,305,496 1,305,496
Police Dept/Parking Substation 1,159,056 849,528
Parking Kiosk Machines 291,884 291,884
Addie St Parking & Access Impr 88,398 88,398
Radio System Reliability Upgrd 4,000 4,000
Other projects 1,097 1,097
Total 6,849,931$ 6,540,403$
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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.E
Meeting Date: May 7, 2024
TITLE:
Quarterly Investment Report for the Three Months of January through March 2024 – the Third Quarter of Fiscal Year (FY) 2024
RECOMMENDATION:
No action recommended; for information only.
EXECUTIVE SUMMARY:
This report updates City Council on the City’s investment portfolio as of the quarter ending on March 31, 2024. This report complies with regulations set forth in California State Government Code Section 53646 in which the City Treasurer is required to submit to the legislative body (City Council) a quarterly report containing various information on the City’s investments.
The report includes all investments managed by the City, including funds invested in various securities, the City’s pooled funds invested in various financial instruments, and funds held in reserve with fiscal agents.
Table 1 (Attachment 1) provides a summary of the City’s cash, investments, and earnings based on book value as of March 31, 2024.
Tables 2 and 3 (Attachments 2 and 3) provides details on the investment type, issuer, maturity date, book value, market value, and interest rates as of March 31, 2024 for the General Fund Reserve and City Pooled Funds A, respectively.
All of the City’s investments and the City’s allocation of funds in the various financial instruments comply with State Government Code Sections 53610—53686 and with the City’s Investment Policy’s primary objective to safeguard the principal. Additionally, the City of Pismo Beach’s invested funds as described in this report comply with the City’s Investment Policy and meet the City’s pooled expenditure requirements for the next six months.
Description of Cash and Investment Accounts
Negotiable Certificates of Deposit (CDs), US Government Agency Securities (GASs), Corporate Bonds (Corp Bonds), US Treasury Notes, and Municipal Bonds (Munis) General Fund Reserves: The City has three reserves invested in various financial instruments that mature at various periods over the next five years. The total amount invested for these three reserves is $7.66 million, earning a projected 2.08% average interest rate during Fiscal Year (FY) 2024. Specifics of each reserve are provided below:
o General Fund Reserve: The City adopted a Fiscal Policy that maintains a General Fund Reserve of 25% of budgeted annual operating expenditures. This Reserve should be $7.55 million, which is 25% of the FY 2024 budgeted annual operating expenditures. Currently, $6.91 million is invested in various CDs, GASs, Corp Council Agenda 05-07-2024 9.E-1
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Bonds, and Munis earning 2.03% on average per year. Note that on October 17, 2023, Council approved Resolution R-2023-081 allocating $2.00 million of the General Fund Reserve to support the Public Safety Facility project. A future Quarterly Investment Report will reflect this shift.
o City Building Reserve: The City Council created a City Building Reserve of $500 thousand for the maintenance and upkeep of City facilities and buildings. Currently, this Reserve is invested in various CDs and GASs earning on average 2.38% per year during FY 2024.
o Risk Management Reserve: The City Council established a Risk Management Reserve, contributing $50 thousand each year to a maximum of $250 thousand.
Currently, this Reserve is $250 thousand, which is invested in CDs, GASs, and Munis earning 3.10% on average per year.
City-Pooled Funds A (for deferred capital projects): Based on the City’s 10-year capital plan and the cash flow needs for the next five years, the City has invested $34.74 million in various CDs, GASs, Corp Bonds, Treasury notes, and Munis that mature at various periods over the next five years and have a 3.00% average interest rate during FY 2024.
Other Financial Instruments
City-Pooled Funds B (for current year expenditures): The City follows the practice of pooling cash for all funds in financial instruments. Interest earned on pooled cash and investments is allocated quarterly to the various funds based on the respective fund’s average quarterly cash balance. As of March 31, 2024, the City-Pooled Funds B are allocated or invested as described below.
$20.03 million in Local Agency Investment Fund (LAIF): LAIF is a State investment pool earning 4.30% annually and is the City’s main savings account where the majority of cash is held for current year expenditures.
$13.78 million in U.S. Bank Checking & Sweep: This account is the City’s primary checking account and with the addition of a new sweep account, the account earned on average 4.91% in March.
OPEB Trust Account
The Governmental Accounting Standards Board (GASB) requires public-sector entities to account for the promise to provide other post-employment benefits (OPEB) over the working life of the employee rather than on a pay-as-you-go basis. The City has an actuarial study performed every two years to determine how much to set aside each year to partially or completely fund the City’s future obligations for retiree health costs.
The OPEB Trust Account is the California Employers’ Retiree Benefit Trust (CERBT) Fund that was set up for the purpose of receiving employer contributions to prefund retiree health and OPEB costs for retirees and their beneficiaries. This trust fund helps finance future costs in large part from the investment earnings provided by CalPERS, rather than the City’s restricted investment earnings. The projected earnings are 6.75% per year and fluctuate from quarter to quarter. The City contributed to the account at the Actuarial Determined Contribution amount of $180 thousand for this year toward the City’s Council Agenda 05-07-2024 9.E-2
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unfunded liability. This contribution now appears as an asset for the City’s future retiree health costs instead of a significant liability on the City’s balance sheet.
Portfolio Allocation
Per California Government Code 53600 et seq., and the City's Investment Policy, the City may invest up to a maximum percentage of the entire portfolio of funds in authorized financial instruments. The following table shows a summary of the authorized financial instruments, the maximum percentage limits, the book value as of March 31, 2024 of the City’s funds, and the percentage of the total City’s pooled funds that are invested in each financial instrument.
Financial Instrument
Maximum
%
Book Value as
of 3/31/24
% of
Portfolio
Local Agency Investment Fund 100% 20,033,457$ 26%
Negotiable Certificates of Deposit 30% 16,085,363 21% Checking Account 100% 13,782,202 18%
US Government Agency Obligations 50% 13,750,000 18% US Treasury Issues 100% 8,003,991 11%
Corporate Bond 30% 2,591,143 3%
Issues of Other California entities 30% 1,965,035 3% 76,211,190$ 100%
Bond funds: Wilmington Trust 1,607$
OPEB Trust Account 5,500,858
Total Book Value 81,713,656$
Local Agency
Investment
Fund, 26%
Negotiable
Certificates of
Deposit, 21%Checking
Account, 18%
US
Government
Agency
Obligations,
18%
US Treasury
Issues, 11%
Corporate
Bond, 3%
Issues of Other
California
entities, 3%
Portfolio Allocation
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Portfolio Liquidity
The portion of the City’s portfolio that is managed by the City Treasurer (all accounts except the Bond Funds and OPEB Trust Account) is sufficiently liquid to meet the City’s expenditure requirements for the next 6 months. The majority of funds are invested in LAIF, which has a liquidity of one day. The following table and chart illustrate the liquidity of the City’s managed portfolio.
Liquidity Amount
0 to 30 days 33,815,659$
FY 2024 145,000
FY 2025 17,215,169
FY 2026 8,250,000
FY 2027 9,170,363
FY 2028 6,145,000
FY 2029 1,470,000
76,211,190$
0 10,000 20,000 30,000 40,000
0 to 30 days
FY 2024
FY 2025
FY 2026
FY 2027
FY 2028
FY 2029
Portfolio Amount ($ thousands)
Li
q
u
i
d
i
t
y
P
e
r
i
o
d
Portfolio Liquidity
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Investment Value
Book Value: The book value represents the initial outlay for an investment and is the amount carried on a balance sheet. In the past quarter ending March 31, 2024, the City’s total book value of cash and investments was $81.71 million. This is $33 thousand less than the last quarter’s ending balance. There are a number of factors that impact changes in cash and investment balances from quarter to quarter. These changes may include receiving periodic payments (e.g., property taxes are received in December and April), large payments on debt service or capital projects, seasonal revenues and expenditures, and other factors affecting cash flow.
Market Value: The market value represents the current price at which a security can be traded and is the value of an investment comparing the various aspects of the security to other factors in the market such as interest rates. The market value as of March 31, 2024 for CDs, GASs, Municipal Bonds, Treasury Notes, and Corporate Bonds was $42.40 million, which is $1.56 million less than the book value. The City expects to hold onto the majority of its investments to maturity and would receive the book value of its investment.
Investment Name Type of Investment
Book Value as
of 3/31/24
Book Value as of
12/31/23 Variance
General Fund Reserve CDs/GASs/Corp
Bonds/Muni Bonds
7,658,980$ 7,658,980$ -$
City Pooled Funds - A CDs/GASs/ Corp
Bonds/ Muni Bonds/
US Treasury Note
34,736,551 39,893,145 (5,156,594)
City Pooled Funds - B Various 33,815,659 29,059,795 4,755,864 Bond funds Blackrock Federal
Fund
1,607 1,588 20
OPEB Trust Account Benefit Trust Account 5,500,858 5,133,541 367,317 TOTAL 81,713,656$ 81,747,049$ (33,393)$
Investment Name Type of Investment
Book Value as of
3/31/24
Market Value as
of 3/31/24 Variance
General Fund Reserve CDs/GASs/ Corp
Bonds/ Muni Bonds
7,658,980$ 7,248,175$ (410,804)$
City Pooled Funds - A CDs/GASs/ Corp
Bonds/ Muni Bonds/US
Treasury Note
34,736,551 33,587,945 (1,148,606)
Total All Securities 42,395,531$ 40,836,121$ (1,559,410)$ Council Agenda 05-07-2024 9.E-5
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Investment Earnings and Performance
Interest Earnings: In the past quarter ending March 31, 2024, the City’s total interest earnings were a gain of $832 thousand, including a $644 thousand gain in the City’s managed portfolio and a $188 thousand gain in OPEB. The estimated interest earnings for FY 2024 are $2.94 million, which is a gain of 3.59% for the year for the City’s entire portfolio and a gain of 2.95% for the City’s managed portfolio. Note that as the City’s cash and investments change, the interest earnings change correspondingly.
Performance: The projected annual interest earnings rate for FY 2024 is 3.59% for the City’s entire portfolio. The projected annual interest earnings rate for FY 2024 is 2.95% for the City’s managed portfolio (excludes Bond funds and OPEB Trust Account). This is compared to LAIF, which is earned 4.30% as of March 31, 2024, or the 1-year U.S.
Treasury Note, which earned 5.03% as of March 31, 2024. The following table lists the various performance measures regarding the various annual earnings rate for the City’s entire portfolio, the City’s managed portfolio, and the two benchmarks of LAIF and the 1- year U.S. Treasury Note.
Performance Measure Earnings
Rate
City’s Annual Earnings Rate for entire Portfolio 3.59%
City’s Annual Earnings Rate for Managed Portfolio 2.71% LAIF Average Annual Earnings Rate 4.30%
1-Year U.S. Treasury Note 5.03%
Investment Name Type of Investment
Book Value as
of 3/31/24
Actual
Interest
Earned 3rd
Quarter
Year-to-Date
Interest Earned
Ending 3/31/24
Estimated
Annual
Interest
Earnings
Estimated
Annual Interest
Earnings Rate
General Fund Reserves CDs/GASs/Corp
Bonds/Muni Bonds
7,658,980$ 28,673$ 108,915$ 148,824$ 1.94% City Pooled Funds - A CDs/GASs/ Corp
Bonds/ Muni Bonds/
US Treasury Note
34,736,551 362,404 1,052,792 1,313,471 3.78%
City Pooled Funds - B Various 33,815,659 252,653 546,158 789,525 2.33% Bond funds Wilmington Trust 1,607 20 1,104 1,124 69.93% OPEB Trust Account* Benefit Trust
Account
5,500,858 188,412 496,152 684,564 12.44%
TOTAL 81,713,656$ 832,162$ 2,205,120$ 2,937,507$ 3.59% Total Managed Portfolio 76,211,190$ 643,730$ 1,707,865$ 2,251,820$ 2.95% Council Agenda 05-07-2024 9.E-6
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Future Outlook
Recent economic data indicate a robust expansion of economic activity, characterized by strong job growth and a persistently low unemployment rate. Although inflation has declined over the past year, it remains above target levels.
The Federal Open Market Committee (FOMC) is committed to achieving maximum employment and stabilizing inflation at 2 percent in the long term. As of March 20, 2024, the FOMC has chosen to keep the federal funds rate steady at 5.25 to 5.50 percent. The Committee will continue to monitor incoming data to guide future monetary policy decisions, maintaining the current rate until it is confident that inflation is consistently approaching the 2 percent goal.
With the elevated federal funds rate, market interest rates are greater than the City’s overall portfolio. This environment offers the City an opportunity to enhance its investment returns as existing investments mature and new investments are made at higher yields.
Currently, the yield curve is inverted, with longer-term rates lower than short-term rates.
In response, the City Treasurer is strategically allocating more idle cash into short-term investments to capitalize on these higher rates, ensuring both liquidity and principal security.
FISCAL IMPACT:
No fiscal impact from the report itself—information only.
ATTACHMENTS:
1. Table 1: Summary Table for ALL Funds, including Book Values and Earnings Data for Investments in Other Financial Instruments
2. Table 2: For the General Fund Reserve—Basic Data on Investments in Securities
3. Table 3: For City Pooled Funds A—Basic Data on Investments in Securities Submitted by: Nadia Feeser, Administrative Services Director/City Treasurer City Manager Approval:
Council Agenda 05-07-2024 9.E-7
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Investment Name Name of Institution Type of Investment Current
Earnings
Rate
Book Value
as of 3/31/24
Actual Interest
Earned 3rd
Quarter Ending
3/31/24
Year-to-Date
Interest
Earned
Ending
3/31/24
* Data
Source
Estimated
Annual Interest
Earnings **
General Fund Reserves US Bank CDs/GASs/Corp
Bonds/Muni Bonds
2.08% avg 7,658,980$ 28,673$ 108,915$ 1 148,824$ City Pooled Funds - A US Bank CDs/GASs/ Corp
Bonds/ Muni Bonds/
US Treasury Note
3.00% avg 34,736,551 362,404 1,052,792 1 1,313,471 Total All Securities 42,395,531$ 391,077$ 1,161,707$ 1,462,295$ City Pooled Funds - B US Bank Custody 0.00%-$ 4,620$ 7,590$ 1 12,210 City Pooled Funds - B Local Agency Invest.
Fund
State Investment Pool 4.30%20,033,457 230,104 512,639 2 742,744 City Pooled Funds - B US Bank Checking 4.91%13,782,202 17,929 25,929 3 34,572 City Pooled Funds - B 33,815,659$ 252,653$ 546,158$ 789,525$ City Pooled Funds total A + B 68,552,211$ 615,057$ 1,598,949$ 2,251,820$ Funds Held with Fiscal
Agent
Bond funds: Wilmington
Trust
2017 Pier Project 586$ 7$ 594$ 4 601
Funds Held with Fiscal
Agent
Bond funds: Wilmington
Trust
2017B CREBs 1,021 13 511 4 523
Calpers Benefit Trust
OPEB Trust Account CalPERS Benefit Trust
Account
Various managed by
CalPERS
5,500,858$ 188,412$ 496,152$ 5 684,564
TOTAL, Cash and Investments at March 31, 2024:81,713,656$ 832,162$ 2,205,120$ 2,937,507$ TOTAL for City Managed Portfolio, Cash and Investments:76,211,190$ 643,730$ 1,707,865$ 2,251,820$ Notes:
* Data Sources for Book Values and Actual Interest Earned:
1 = Monthly Customer Statement from US Bank
2 = Monthly statement from Local Agency Investment Fund. 3 = Monthly reconciled bank statement from respective bank. 4 = Monthly statement from Wilmington Trust
5 = Monthly statement from CalPERS Benefit Trust Account ** Estimated Annual Interest Earnings for the current Fiscal Year (FY) 2024:
1. Estimated Earnings on Investments are based on scheduled Interest Payments during FY 2024
2. Estimated Earnings on Other Financial Instruments are based on anticipated average account balances (Book Values) and interest rates during FY 2024.
City of Pismo Beach
Table 1: Summary Table for All Funds,
including Book Values & Earnings Data for Investments in Other Financial Instruments Council Agenda 05-07-2024 9.E-8
Attachment 1
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City of Pismo Beach
March 31, 2024 QUARTERLY INVESTMENT REPORT
Table 2: For the General Fund Reserves - Basic Data on Investments in Securities:
Government Agency Securities, Bank Certificates of Deposit, Municipal Bonds, Corporate Bonds CUSIP Issuer Name Coupon Acq Date Maturity Type S&P Par Value Book Value IDC Market Value
Gain/
Loss
Days to
Stated
Maturit y
020080BL0 Alma Bank 1.75% 09/11/19 09/11/24 CD 98.398 245,000 241,075 (3,925) 73 02589ACE0 American Express
(59.76%)
2.90% 05/03/22 04/27/27 CD 95.121 147,000 139,837 (7,163) 1,031 052392BT3 Austin Telco Federal
Credit Union
3.80% 09/21/22 09/21/27 CD 97.769 245,000 239,534 (5,466) 1,178 06406RBA4 Bank New York Mellon
(32.69%)
2.05% 01/26/22 01/26/27 CD A 92.67 245,000 227,204 (17,796) 940 05600XQL7 BMO Harris Bank
(56.73%)
4.45% 05/24/23 05/24/28 CD 102.39 139,000 142,310 3,310 1,424 13063CLW8 California State GO
Bonds (41.83%)
5.00% 05/08/20 10/01/24 Municipal Bond AA- 100.828 245,000 210,882 (34,118) 93 13063CLW8 California State GO
Bonds (8.54%)
5.00% 05/08/20 10/01/24 Municipal Bond AA- 100.828 50,000 43,054 (6,946) 93 14042TFP7 Capital One Bank
(47.76%)
2.90% 04/27/22 04/27/27 CD 95.121 117,000 111,303 (5,697) 1,031 24951TAL9 Department of
Commerce FCU
(20.41%)
1.25% 01/07/22 01/07/27 CD 91.088 50,000 45,548 (4,452) 921 24951TAL9 Department of
Commerce FCU
(22.45%)
1.25% 01/07/22 01/07/27 CD 91.088 55,000 50,101 (4,899) 921 27004PCV3 Eaglemark Savings Bank
(20%)
3.25% 06/22/22 06/22/27 CD 96.059 50,000 47,069 (2,931) 1,087 291916AB0 Empower Federal Credit
Union (53.06%)
5.10% 09/29/23 09/29/28 CD 103.191 130,000 134,145 4,145 1,552 29367RLM6 Enterprise Bank
(63.27%)
0.85% 05/18/20 05/14/25 CD 95.436 155,000 147,937 (7,063) 318 3130APB87 FHLB 1.10% 10/13/21 10/13/26 Agency AA+ 91.603 500,000 458,015 (41,985) 835 3130AQZ55 FHLB 2.50% 03/10/22 03/10/27 Agency AA+ 94.338 500,000 471,690 (28,310) 983 3130ALYC2 FHLB (19.2%)1.14% 04/29/21 04/29/26 Agency AA+ 92.874 192,000 178,318 (13,682) 668 3130AMCY6 FHLB (2.5%)1.00% 05/27/21 05/27/26 Agency AA+ 92.433 50,000 46,217 (3,784) 696 3130AQAU7 FHLB (24.5%)1.45% 12/29/21 12/29/26 Agency AA+ 91.423 245,000 223,986 (21,014) 912 3130AMCY6 FHLB (25.8%)1.00% 05/27/21 05/27/26 Agency AA+ 92.433 516,000 476,954 (39,046) 696 3130ARF55 FHLB (49%)2.60% 03/30/22 03/30/27 Agency AA+ 94.531 245,000 231,601 (13,399) 1,003 3130ALYC2 FHLB (5.3%)1.14% 04/29/21 04/29/26 Agency AA+ 92.874 53,000 49,223 (3,777) 668 3130ARF55 FHLB (51%)2.60% 03/30/22 03/30/27 Agency AA+ 94.531 255,000 241,054 (13,946) 1,003 32024JAM5 First Federal Credit
Union - (78.35%)
4.40% 02/17/23 02/17/28 CD 100.088 191,967 192,126 159 1,327 33847E3J4 Flagstar Bank 0.90% 05/15/20 05/15/25 CD 95.479 245,000 233,924 (11,076) 319 39573LEM6 Greenstate Credit Union
(20.4%)
5.00% 09/26/23 09/26/28 CD 102.776 50,000 51,367 1,367 1,549 46632FRU1 JP Morgan Chase Bank 0.70% 01/22/21 01/22/26 Corporate Bond A+ 90.311 500,000 451,555 (48,445) 571 50625LBN2 Lafayette Federal Credit
Union
3.25% 06/15/22 06/15/27 CD 96.057 245,000 235,340 (9,660) 1,080 59013KPN0 Merrick Bank 1.10% 11/09/21 11/09/26 CD 91.126 245,000 223,259 (21,741) 862 6966674G6 Palm Springs USD GO
Bonds (95.66%)
0.85% 10/28/20 08/01/24 Municipal Bond AA 98.5 773,013 758,512 (14,501) 32 835104BZ2 Somerset Tr Co 1.00% 03/19/20 03/19/25 CD 96.103 245,000 235,452 (9,548) 262 87164X2C9 Synchrony Bank 4.60% 09/15/23 09/15/28 CD 101.085 245,000 247,658 2,658 1,538 88413QDL9 Third Federal Savings
Bank
3.50% 06/28/22 06/28/27 CD 96.801 245,000 237,162 (7,838) 1,093 89235MLC3 Toyota Financial Savings
Bank
0.95% 07/15/21 07/15/26 CD 91.74 245,000 224,763 (20,237) 745 Total $ 7,658,980 $ 7,248,175
Council Agenda 05-07-2024 9.E-9
Attachment 2
Packet Page 49
City of Pismo Beach
March 31, 2024 QUARTERLY INVESTMENT REPORT
Table 3: For City Pooled Funds A - Basic Data on Investments in Securities:
Government Agency Securities, Bank Certificates of Deposit, Municipal Bonds, Corporate Bonds, Treasury Notes CUSIP Issuer Name Coupon Acq Date Maturity Type S&P Par Value Book Value IDC Market Value
Gain/
Loss
Days to
Stated
Maturit y
00257TBH8 Abacus Federal Savings
Bank
1.70% 09/18/19 09/18/24 CD 98.309 245,000 240,857 (4,143) 80 01025RAN9 Alabama Credit Union 4.35% 02/28/24 02/28/28 CD 99.953 245,000 244,885 (115) 1,338 011852AE0 Alaska USA Federal
Credit Union
4.60% 03/08/23 03/08/28 CD 100.87 245,000 247,132 2,132 1,347 01664MAB2 All In Federal Credit
Union
4.40% 12/20/22 12/20/27 CD 99.924 245,000 244,814 (186) 1,268 01882MAB8 Alliant Credit Union 4.95% 12/30/22 12/30/27 CD 101.863 245,000 249,564 4,564 1,278 02554BDA6 American Eagle Bank 1.10% 03/13/20 03/13/25 CD 96.254 245,000 235,822 (9,178) 256 02589ACE0 American Express
(40.24%)
2.90% 05/03/22 04/27/27 CD 95.121 99,000 94,161 (4,839) 1,031 037833AZ3 Apple Inc 2.50% 03/05/20 02/09/25 Corporate Bond AA+ 97.758 1,062,000 977,580 (84,420) 224 062119BS0 Bank Five Nine (40.82%) 4.60% 04/14/23 04/13/28 CD N/A 100.965 100,000 100,974 974 1,383 062119BS0 Bank Five Nine (59.18%) 4.60% 04/14/23 04/13/28 CD N/A 100.965 145,000 146,390 1,390 1,383 06406RBA4 Bank New York Mellon
(67.31%)
2.05% 01/26/22 01/26/27 CD A 92.67 504,363 467,821 (36,541) 940 06048WS43 Bank of America Corp 2.00% 02/18/22 08/18/25 Corporate Bond A- 94.157 500,000 470,785 (29,215) 414 06740KQE0 Barclays Bank 3.00% 05/11/22 05/11/27 CD 95.389 245,000 233,703 (11,297) 1,045 05600XQL7 BMO Harris Bank
(43.27%)
4.45% 05/24/23 05/24/28 CD 102.39 106,000 108,545 2,545 1,424 05580AW59 BMW Bank North
America
4.60% 03/10/23 03/10/28 CD 100.832 245,000 247,038 2,038 1,349 13063CLW8 California State GO
Bonds (49.63%)
5.00% 05/08/20 10/01/24 Municipal Bond AA- 100.828 290,655 250,205 (40,450) 93 14042TFP7 Capital One Bank
(52.24%)
2.90% 04/27/22 04/27/27 CD 95.121 128,000 121,743 (6,257) 1,031 14042RQU8 Capital One National
(20.41%)
2.90% 04/27/22 04/27/27 CD 95.121 50,000 47,565 (2,435) 1,031 14042RQU8 Capital One National
(79.59%)
2.90% 04/27/22 04/27/27 CD 95.121 195,000 185,482 (9,518) 1,031 15118RUR6 Celtic Bank 1.35% 04/02/20 04/02/25 CD 96.321 245,000 235,986 (9,014) 276 15201QCJ4 Centerstate Bank 1.00% 03/30/20 03/31/25 CD N/A 96.038 245,000 235,293 (9,707) 274 12547CAX6 CIBC Bank USA Chicago 4.45% 04/14/23 04/14/28 CD 100.401 245,000 245,982 982 1,384 17286TAG0 Citadel Federal Credit
Union
1.65% 02/25/20 02/27/25 CD 96.898 245,000 237,400 (7,600) 242 19058RAE1 Coastal1 Credit Union 4.15% 01/31/24 01/31/28 CD 99.158 245,000 242,937 (2,063) 1,310 19075JAB4 Cobalt Federal Credit
Union
3.60% 09/15/22 09/15/27 CD 97.123 245,000 237,951 (7,049) 1,172 22551KAU6 Credit Union of Texas 4.40% 12/09/22 12/09/27 CD 99.898 245,000 244,750 (250) 1,257 23204HPB8 Customers Bank 4.50% 06/14/23 06/14/28 CD 103.077 245,000 252,539 7,539 1,445 24951TAL9 Department of
Commerce FCU
(57.14%)
1.25% 01/07/22 01/07/27 CD 91.088 140,000 127,517 (12,483) 921 254673D94 Discover Bank 3.20% 05/19/22 05/19/27 CD 95.963 245,000 235,109 (9,891) 1,053 27004PCV3 Eaglemark Savings Bank
(80%)
3.25% 06/22/22 06/22/27 CD 96.059 195,000 188,276 (6,724) 1,087 291916AB0 Empower Federal Credit
Union (46.94%)
5.10% 09/29/23 09/29/28 CD 103.191 115,000 118,673 3,673 1,552 29367SJQ8 Enterprise Bank 1.80% 11/08/19 11/08/24 CD 97.916 245,000 239,894 (5,106) 131 29367RLM6 Enterprise Bank
(36.73%)
0.85% 05/18/20 05/14/25 CD 95.436 90,000 85,881 (4,119) 318 Council Agenda 05-07-2024 9.E-10
Attachment 3
Packet Page 50
City of Pismo Beach
March 31, 2024 QUARTERLY INVESTMENT REPORT
Table 3: For City Pooled Funds A - Basic Data on Investments in Securities:
Government Agency Securities, Bank Certificates of Deposit, Municipal Bonds, Corporate Bonds, Treasury Notes CUSIP Issuer Name Coupon Acq Date Maturity Type S&P Par Value Book Value IDC Market Value
Gain/
Loss
Days to
Stated
Maturit y
30002CAT5 Everett Co-Operative 3.90% 01/23/23 01/19/27 CD 98.265 245,000 240,749 (4,251) 933 3130ALD76 FHLB 0.70% 02/25/21 02/25/26 Agency AA+ 92.515 500,000 462,575 (37,425) 605 3130ANSB7 FHLB 1.00% 09/17/21 09/17/26 Agency AA+ 91.376 1,000,000 913,760 (86,240) 809 3130ARGQ8 FHLB 2.88% 04/14/22 04/14/27 Agency AA+ 95.233 500,000 476,165 (23,835) 1,018 3130ATDV6 FHLB 5.00% 09/30/22 09/30/27 Agency AA+ 99.737 500,000 498,685 (1,315) 1,187 3130AQAU7 FHLB (14%)1.45% 12/29/21 12/29/26 Agency AA+ 91.423 140,000 127,992 (12,008) 912 3130AMS37 FHLB (20%)1.00% 06/24/21 06/24/26 Agency AA+ 92.183 400,000 368,732 (31,268) 724 3130AMCY6 FHLB (25%)1.00% 05/27/21 05/27/26 Agency AA+ 92.433 500,000 462,165 (37,835) 696 3130AMS37 FHLB (30%)1.00% 06/24/21 06/24/26 Agency AA+ 92.183 600,000 553,098 (46,902) 724 3130AMCY6 FHLB (46.7%)1.00% 05/27/21 05/27/26 Agency AA+ 92.433 934,000 863,324 (70,676) 696 3130AMS37 FHLB (50%)1.00% 06/24/21 06/24/26 Agency AA+ 92.183 1,000,000 921,830 (78,170) 724 3130ARGE5 FHLB (50%)3.00% 04/21/22 04/21/27 Agency AA+ 95.515 250,000 238,788 (11,213) 1,025 3130ARGE5 FHLB (50%)3.00% 04/21/22 04/21/27 Agency AA+ 95.515 250,000 238,788 (11,213) 1,025 3130AV6C1 FHLB (50%)5.71% 03/27/23 03/27/28 Agency AA+ 100.433 250,000 251,083 1,083 1,366 3130AV6C1 FHLB (50%)5.71% 03/27/23 03/27/28 Agency AA+ 100.433 250,000 251,083 1,083 1,366 3130AQAU7 FHLB (61.5%)1.45% 12/29/21 12/29/26 Agency AA+ 91.423 615,000 562,251 (52,749) 912 3130ALYC2 FHLB (75.5%)1.14% 04/29/21 04/29/26 Agency AA+ 92.874 755,000 701,199 (53,801) 668 32024JAM5 First Federal Credit
Union - (21.65%)
4.40% 02/17/23 02/17/28 CD 100.088 53,033 53,089 56 1,327 32110YE84 First National Bank
America
4.60% 09/21/23 09/21/28 CD 101.138 245,000 247,788 2,788 1,544 32112UDJ7 First National Bank
McGregor
1.80% 12/30/19 12/30/24 CD 97.495 245,000 238,863 (6,137) 183 334342CD2 First National Bank
Syracuse
1.85% 08/30/19 08/30/24 CD 98.557 245,000 241,465 (3,535) 61 33715LED8 First Technology 3.70% 08/19/22 08/19/27 CD 97.426 245,000 238,694 (6,306) 1,145 3136G4WV1 FNMA 0.75% 06/16/20 06/16/25 Agency AA+ 95.193 1,000,000 951,930 (48,070) 351 3136G4J61 FNMA 0.57% 08/26/20 08/26/25 Agency AA+ 94.14 750,000 706,050 (43,950) 422 3136G43L5 FNMA 0.55% 09/30/20 09/30/25 Agency AA+ 93.654 1,000,000 936,540 (63,460) 457 38149MAJ2 Goldman Sachs Bank 2.70% 05/22/19 05/22/24 CD 99.592 145,000 144,408 (592) (39) 39573LEM6 Greenstate Credit Union
(79.6%)
5.00% 09/26/23 09/26/28 CD 102.776 195,000 200,434 5,434 1,549 472207AE9 Jeanne D Arc Federal
Credit Union
3.80% 09/30/22 09/30/27 CD 97.789 245,000 239,583 (5,417) 1,187 502516QY6 La Canada California
USD
1.75% 04/28/20 08/01/24 Municipal Bond N/A 98.821 571,288 558,339 (12,950) 32 51210SSD0 Lakeside Bank 1.40% 03/30/20 03/31/25 CD N/A 96.393 245,000 236,163 (8,837) 274 58404DSM4 Medallion Bank Utah 4.40% 06/16/23 06/16/28 CD 100.257 245,000 245,630 630 1,447 60425SKB4 Minnwest Bank 4.25% 05/01/23 05/03/27 CD 98.975 245,000 242,489 (2,511) 1,037 61690UJ68 Morgan Stanley Bank 3.25% 05/19/22 05/19/27 CD N/A 96.099 245,000 235,443 (9,557) 1,053 61768ET29 Morgan Stanley Bank 4.35% 03/06/24 03/06/29 CD 100.193 245,000 245,473 473 1,710 67054NBC6 Numerica Credit Union 4.95% 11/04/22 11/04/27 CD 101.631 245,000 248,996 3,996 1,222 694231AF8 Pacific Enterprise Bank 1.35% 04/09/20 04/09/25 CD N/A 96.257 245,000 235,830 (9,170) 283 69506YRG6 Pacific Western Bank 1.35% 04/16/20 04/16/25 CD 96.223 245,000 235,746 (9,254) 290 6966674G6 Palm Springs USD GO
Bonds (4.34%)
0.85% 10/28/20 08/01/24 Municipal Bond AA 98.5 35,078 34,413 (665) 32 70962LAS1 Pentagon Federal Credit
Union
0.90% 09/29/21 09/29/26 CD 90.971 245,000 222,879 (22,121) 821 75472RAE1 Raymond James Bank 2.00% 08/23/19 08/23/24 CD 98.655 245,000 241,705 (3,295) 54 Council Agenda 05-07-2024 9.E-11
Attachment 3
Packet Page 51
City of Pismo Beach
March 31, 2024 QUARTERLY INVESTMENT REPORT
Table 3: For City Pooled Funds A - Basic Data on Investments in Securities:
Government Agency Securities, Bank Certificates of Deposit, Municipal Bonds, Corporate Bonds, Treasury Notes CUSIP Issuer Name Coupon Acq Date Maturity Type S&P Par Value Book Value IDC Market Value
Gain/
Loss
Days to
Stated
Maturit y
79772FAG1 San Francisco Federal
Credit Union
4.35% 02/03/23 02/03/28 CD 99.871 245,000 244,684 (316) 1,313 856285K91 State Bank India 2.00% 03/23/22 03/23/27 CD 92.688 245,000 227,086 (17,914) 996 88241THJ2 Texas Exchange Bank 1.00% 06/10/20 06/13/25 CD 95.273 245,000 233,419 (11,581) 348 89236TGT6 Toyota Motor Corp 1.80% 06/05/20 02/13/25 Corporate Bond A+ 97.034 257,893 242,585 (15,308) 228 90348JTH3 UBS Bank USA 1.25% 03/25/20 03/25/25 CD N/A 96.287 245,000 235,903 (9,097) 268 90331HMS9 US Bank National 2.80% 05/29/20 01/27/25 Corporate Bond A+ 97.854 271,250 244,635 (26,615) 211 912797KK2 US Treasury Bill
(12.50%)
5.11% 03/14/24 09/12/24 Treasury Note N/A 97.676 1,000,000 1,001,179 1,179 74 912797KK2 US Treasury Bill
(12.50%)
5.11% 03/14/24 09/12/24 Treasury Note N/A 97.676 1,000,000 1,001,179 1,179 74 912797KK2 US Treasury Bill
(75.00%)
5.11% 03/14/24 09/12/24 Treasury Note N/A 97.676 6,003,991 6,007,074 3,083 74 917352AH9 Utah Community Credit
Union
4.50% 06/07/23 06/07/28 CD 102.771 245,000 251,789 6,789 1,438 92891CCP5 Vystar Credit Union 4.45% 09/30/22 09/30/27 CD 99.882 245,000 244,711 (289) 1,187 938828BN9 Washington Federal
Bank
1.95% 08/28/19 08/28/24 CD 98.616 245,000 241,609 (3,391) 59 98138MCC2 Workers Federal Credit
Union
5.25% 11/15/23 11/15/28 CD 103.928 245,000 254,624 9,624 1,599 Total 34,736,551$ 33,587,945$
Council Agenda 05-07-2024 9.E-12
Attachment 3
Packet Page 52
PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #9.F
Meeting Date: May 7, 2024
TITLE:
Approval of the 2022 Paving Project for Proposed Fiscal Year 2025 Road Maintenance and Rehabilitation Account Funding (SB 1); Making a Determination of Exemption under the Environmental Quality Act
RECOMMENDATION:
Adopt a Resolution approving the 2022 Paving Project for proposed Senate Bill 1 Road Maintenance and Rehabilitation Account funding for Fiscal Year 2025 and making a Determination of Exemption under the California Environmental Quality Act.
DISCUSSION:
On April 28, 2017, the Governor signed Senate Bill (SB) 1, which is known as the Road Repair and Accountability Act of 2017. SB 1 increases fuel excise taxes, diesel fuel sales taxes, and vehicle registration fees to help address basic road maintenance, rehabilitation, and critical safety needs for state highway and local streets and roads.
Beginning November 1, 2017, the State Controller began depositing these revenues into local governments’ newly created Road Maintenance and Rehabilitation Account (RMRA).
So far, the City has received the $835,744 of RMRA funds through fiscal year (FY) 2023:
Fiscal Year RMRA Funds Received
FY 2018 $48,324
FY 2019 150,978
FY 2020 142,698
FY 2021 150,885
FY 2022 163,247
FY 2023 179,611
Total $835,744
The City is projected to receive $192,682 in FY 2024 of RMRA funds. The City anticipates another $205,967 in FY 2025 per the CaliforniaCityFinance.com RMRA Estimates as of January 2024. These funds are deposited in the City’s Gas Tax Fund RMRA account to support a budgeted street maintenance project. The California Transportation Commission (CTC) requests that cities and counties submit a Council-approved project list identified for proposed RMRA funding no later than July 1, 2024 to receive these funds in FY 2025. This project list 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.
Council Agenda 05-07-2024 9.F-1
Packet Page 53
Maintenance of Effort
The amount that each City receives is based on a portion of the average of General Fund and Half-Cent Sales Tax Fund costs spent on street repairs and maintenance as reported to the State Controller’s Office for FY 2010, FY 2011, and FY 2012. For the City of Pismo Beach, this amount has been calculated to be $558,874. This level of funding is the City’s Maintenance of Effort, or required annual funding, from discretionary funds for street projects. Staff have reviewed the budgets for FY 2025 and project that the City will meet this requirement. The 2022 Paving Project is included in the City of Pismo Beach’s budget as approved by the City Council on April 19, 2022.
Proposed Project for Road Maintenance and Rehabilitation Account Funding Staff has identified the 2022 Paving Project as a proposed project for RMRA funding. The 2022 Paving Project budget includes support from the RMRA funds. This project meets the eligibility requirements as described in State and Highways Code Section 2030(b)(1).
The 2022 Paving project (Project) is located on Mattie Road, Ocean Boulevard, Wadsworth Avenue, Price Street, Solar Way, Bluffs Trail, City Hall Parking Lot, and roadways in the neighborhood northeast of James Way feeding Ventana and Highland Drives and within the Las Ventanas del Mar development in Pismo Beach, California. The Project includes maintenance and rehabilitation of existing roadways, accessibility improvements, striping reconfiguration, and improving pedestrian and bicyclist safety.
Construction of the Project began in the summer of 2022 and is projected to be completed by November 30, 2024. And finally, the Project has a useful life ranging from 20 to 50 years.
Conclusion and Recommendation
Staff recommends that the City Council adopt a resolution (Attachment 1) identifying the FY 2022 Paving project for proposed RMRA funding.
FISCAL IMPACT:
The fiscal impact of approving the attached resolution is an additional $205,967 of funds to help offset the 2022 Paving project.
ATTACHMENTS:
1. Resolution
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:
Council Agenda 05-07-2024 9.F-2
Packet Page 54
RESOLUTION NO. R-2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH, CALIFORNIA APPROVING THE 2022 PAVING PROJECT FOR PROPOSED SENATE BILL 1 ROAD MAINTENANCE AND REHABILITATION ACCOUNT FUNDING FOR FISCAL YEAR 2025 AND MAKING A DETERMINATION OF
EXEMPTION UNDER THE CALIFORNIA ENVIRONMENTAL QUALITY ACT 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 our 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 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, beginning November 1, 2017, the State Controller began depositing these revenues into local governments’ newly created Road Maintenance and Rehabilitation Accounts (RMRA), including $835,744 from fiscal year (FY) 2018 through FY 2023, a projected $192,682 in FY 2024 and $205,967 in FY 2025 for the City of Pismo Beach; and
WHEREAS, the City has undergone a robust public process to ensure public input into our community’s transportation priorities/the project list; and WHEREAS, the City used a Pavement Management Program 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 2021 California Statewide Local Streets and Roads Needs Assessment found that 73% of the City’s streets and roads are in an “good” to “fair” condition and this revenue will help us increase the overall quality of our road system and over the next decade will bring our streets and roads into a “good” condition; and WHEREAS, the SB 1 project list and overall investment in our local streets and roads infrastructure with a focus on basic maintenance and safety, investing in complete streets infrastructure, and using cutting-edge technology, materials, and practices, will have significant positive co-benefits statewide.
Council Agenda 05-07-2024 9.F-3
Attachment 1
Packet Page 55
WHEREAS, the California Transportation Commission (CTC) requests that cities and counties submit a Council-approved project list identified for proposed RMRA funding no later than July 1, 2024 in order to receive these funds in FY 2025, and which the project list 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, staff has identified the 2022 Paving Project located on Mattie Road, Ocean Boulevard, Wadsworth Avenue, Price Street, Solar Way, Bluffs Trail, City Hall Parking Lot, and roadways in the neighborhood northeast of James Way feeding Ventana and Highland Drives and within the Las Ventanas del Mar development in Pismo Beach, California, as a proposed project for RMRA funding and this project meets the eligibility requirements as described in Streets and Highways Code Section 2030(b)(1); and WHEREAS, the 2022 Paving Project includes maintenance and rehabilitation to existing roadways, accessibility improvements, striping reconfiguration, and improving pedestrian and bicyclist safety; and
WHEREAS, the 2022 Paving project is estimated to be completed by November 30, 2024 and has a useful life ranging from 20 to 50 years; and
WHEREAS, the 2022 Paving Project is included in the City of Pismo Beach budget as approved by the Pismo Beach City Council on April 19, 2022; and WHEREAS, the proposed action is not a “project” as defined in the California Environmental Quality Act (CEQA), Public Resource Code Section 21065 and Section 15378 (b) (4) and (5) of the State CEQA Guidelines, because the proposed action is an organizational or administrative activity that will not result in direct or indirect physical change in the environment.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pismo Beach as follows:
1. The City Council hereby approves the re-listed 2022 Paving Project (Project) for proposed RMRA funding for FY 2025;
2. The Project is located on Mattie Road, Ocean Boulevard, Wadsworth Avenue, Price Street, Solar Way, Bluffs Trail, City Hall Parking Lot, and roadways in the neighborhood northeast of James Way feeding Ventana and Highland Drives and within the Las Ventanas del Mar development in Pismo Beach, California;
3. The Project includes maintenance and rehabilitation to existing roadways, accessibility improvements, striping reconfiguration, and improving pedestrian and bicyclist safety;
3. Construction of the Project began in the summer of 2022 and is anticipated to be completed by November 30, 2024; and
4. The Project has a useful life ranging from 20 to 50 years;
5. The City Manager, or designee, is hereby authorized to submit the project list and application to the California Transportation Commission for any and all RMRA Council Agenda 05-07-2024 9.F-4
Attachment 1
Packet Page 56
funds that may become available to the City and execute any and all documents necessary to implement and secure any and all such RMRA funds.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 7th day of May 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on _______________________. ________________________
Erica Inderlied, City Clerk
Council Agenda 05-07-2024 9.F-5
Attachment 1
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PISMO BEACH CITY COUNCIL and
PISMO BEACH PUBLIC FINANCING AGENCY
STAFF REPORT
Agenda Item #11.A
Meeting Date: May 7, 2024
TITLE:
City of Pismo Beach and Pismo Beach Public Financing Agency Authorization for Issuance of 2024 Lease Revenue Bonds to Finance the Public Safety Facility Project
RECOMMENDATION:
1. Adopt a Resolution of the City Council of the City of Pismo Beach making required findings authorizing the execution and delivery of documents relating to the sale and issuance of not to exceed $48,500,000 Pismo Beach Public Financing Agency Series 2024A Lease Revenue Bonds (Public Safety Facility Project) to finance construction of a Public Safety Facility Project and authorizing and directing certain actions in connection therewith;
and
2. Adopt a Resolution of the Pismo Beach Public Financing Agency approving the execution and delivery of documents in connection with the sale and issuance of the Pismo Beach Public Financing Agency Series 2024A Lease Revenue Bonds (Public Safety Facility Project) in a principal amount not to exceed $48,500,000 and authorizing and directing certain actions in connection therewith.
DISCUSSION:
On March 19, 2024, the City Council adopted a resolution setting forth Council’s intention to proceed with the issuance of proceeds of tax-exempt bonds, notes, certificates of participation, revenue bonds or other forms of tax-exempt debt for the purpose of financing (the “Financing”) certain costs of designing and constructing a new Public Safety Facility located in the city (the “Facility Project”).
On April 29, 2024, the City Manager and Administrative Services Director met with Standard & Poor’s (S&P) in order to obtain a rating for the Series 2024A Lease Revenue Bonds (the “Bonds”). The City, Municipal Advisor, and Underwriter prepared a comprehensive presentation that included pertinent information on the City’s management, demographics, and relevant financial information as well as a description of the Bonds. The City expects to receive the rating the week of May 6, 2024.
Next Steps
It is anticipated that the Bonds will be sold on a “negotiated” basis with BofA Securities, Inc., serving as underwriter (“Underwriter”) pursuant to a Bond Purchase Agreement (the "Bond Purchase Agreement"). In addition, it is anticipated that the pricing (the “Pricing”) and sale of the Bonds will be completed during the week of June 24, 2024, and that the Bonds will be issued mid-July of 2024. However, the Bonds could be sold earlier if market conditions are advantageous. Finally, in order to avoid the need for capitalized interest, Council Agenda 05-07-2024 11.A-1
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the City is encumbering several City government facilities, parks, and other assets as leased assets. Once the Facility Project is completed, City Hall and the Facility Project will remain as leased assets, and all other assets will be released.
Bond Structure
The Bonds are being scheduled to mature over a thirty-year payback period. The final interest rate and aggregate principal amount of the Bonds will be determined during the Pricing and will become final upon execution of the Bond Purchase Agreement and the Bonds are closed. However, in no case will the final aggregate principal amount exceed $48,500,000, nor will the Underwriter’s discount exceed 0.30% of the principal amount of the Bonds, nor will the true interest cost exceed 5.50%.
Public Hearing
In accordance with Government Code Section 6586 (a), (c) and (d), the City must hold a public hearing to consider public testimony concerning the possible issuance of Bonds by the Pismo Beach Public Financing Agency (“Agency”) to finance certain public capital improvements within the boundaries of the city, including the Facility Project. The City resolution approves the sale of the Bonds by the Agency and finds that there are significant public benefits in connection with the Facility Project, and the associated Financing thereof with the proceeds of the Bonds.
This meeting has been convened as a joint meeting of the City Council and the Agency Board of Directors in order to allow the City Council, and the Council Members acting in their capacity as the Agency Board, to hold the hearing as described above and consider adoption of a resolution of each body authorizing the issuance of the bonds and approving the form of related financing documents and other actions.
Summary of Financing Documents
The resolutions that are recommended for adoption (Attachments 1 and 2) authorize and approve the form of all the legal documents (“Financing Documents”) necessary to provide for the successful issuance of the Bonds.
The Financing Documents (Attachments 3 through 6) are being presented to the City Council and Agency Board as form documents, as they cannot be fully completed at this time because certain components will not be finalized until after the Pricing of the Bonds.
This method of approval is the normal method of approving a bond issue in California.
Due to the volume of these documents, they are provided as online attachments only.
These documents are available online in the Access Pismo public records portal at www.pismobeach.org/accesspismo1 , or upon request from the City Clerk’s Office.
The individual Financing Documents needed to complete this financing are each briefly described below. Several of the documents are supplements to the documents of the 2017 Lease Revenue Bonds (Pismo Beach Municipal Pier Project) (the “Pier Bonds”) and the 2017B Lease Revenue Bonds (Federally Taxable Clean Renewable Energy Bonds). 1 Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=529015&dbid=0&repo=Laserfiche Council Agenda 05-07-2024 11.A-2
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The supplements add the Bonds to the documents, and the terms of the original documents apply to the 2024A Lease Revenue Bonds.
1. Second Supplement to Site and Facility Lease Agreement and Second Supplement to the Lease Agreement: The City will lease the Leased Property to the Agency under the Site and Facilities Lease, which was initially entered into in connection with the Pier Bonds, as supplemented by the Second Supplement to Site and Facility Lease, and the Agency will lease the Leased Property back to the City under the Lease Agreement, which was initially entered into in connection with the Pier Bonds, as supplemented by the Second Supplement to Lease Agreement, in consideration of the payment by the City to the Agency of semi-annual rental payments (the “Base Rental Payments”), which are pledged to the repayment of the Bonds. In addition, the City agrees to annually budget for and appropriate the Base Rental Payments for the use and occupancy of the Leased Property. The City further agrees to provide specified forms of insurance and to maintain the Leased Property. See Attachment 3 and Attachment 4.
2. Second Supplement to Indenture: Under the Indenture (under which the Pier Bonds and the 2017B Bonds were previously issued), as supplemented by the Second Supplement to Indenture, Wilmington Trust, N.A., as the Trustee, agrees to deliver the Bonds to the Underwriter in exchange for the purchase price of the Bonds. The majority of the Bond proceeds are deposited into a Project Fund maintained by the Trustee, and are disbursed by the Trustee to pay for costs of the Facility Project in accordance with requisitions from the City.
The Indenture and Second Supplement to the Indenture further provide for the Trustee to receive directly the Base Rental Payments made by the City under the Lease Agreement, which are equal in amount to the interest and principal payments due on the Bonds, the Pier Bonds and the 2017B Bonds. The Trustee receives and disburses the Base Rental Payments semiannually. Finally, the Indenture and Second Supplement to the Indenture set forth the covenants and specifics of the Bonds, including the flow of funds, prepayment provisions, investment and management of funds and accounts, repayment mechanisms and Bond owners’ rights and remedies.
See Attachment 5.
3. Second Supplement to Assignment Agreement: Under the Assignment Agreement, the Agency agrees to assign to the Trustee its right to receive the Base Rental Payments made under the Lease Agreement. The Second Supplement to Assignment Agreement is being entered into to provide for the assignment of the additional Base Rental Payments relating to the Bonds. See Attachment 6.
4. Preliminary Official Statement: As a necessary prerequisite to the public marketing and selling of the Bonds, a preliminary official statement (the “Preliminary Official Statement”) has been prepared by Stradling Yocca Carlson & Rauth LLP, as Disclosure Counsel to the City and Agency, with the help of the Municipal Advisor, Underwriter, and City staff. This document describes the City, the Financing, the Council Agenda 05-07-2024 11.A-3
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Facility Project, the Leased Property, the Bonds, the Financing Documents, and the risk factors associated with an investment in the Bonds. The Preliminary Official Statement is the central source of information to potential bond buyers, and is subject to federal securities law, which requires that the information contained in the Preliminary Official Statement be accurate and complete, except for certain permitted missing information that will be inserted following Pricing. Once the Bond Purchase Agreement (described below) is executed, the final pricing detail will be used to fill in the blanks of the Preliminary Official Statement, which will then be used as the basis for the final Official Statement. See Attachment 7.
Important Information about Securities Disclosure: The Preliminary Official Statement has been reviewed and approved for transmittal to the City Council and Agency Board by staff and the financing team. The Preliminary Official Statement must include all facts that would be considered material to an investor in the Bonds. Material information is information that there is a substantial likelihood would have actual significance in the deliberations of the reasonable investor when deciding whether to buy or sell the Bonds.
Members of the City Council and Agency Board are obligated to review the Preliminary Official Statement to make sure they feel comfortable that it includes all material facts.
5. Bond Purchase Agreement: This is an agreement among the City, the Agency, and the Underwriter, which provides the terms and conditions for the sale of the Bonds to the Underwriter, and once signed, locks in the final terms and interest rates of the Bonds. See Attachment 8.
6. Continuing Disclosure Certificate: This agreement obligates the City to continue providing certain information regarding the City and the Bonds as long as they are outstanding. See Attachment 9.
Financing Team and Cost of Issuance
Through a Request for Proposals and historical experience working with various members of the financing team to issue the Bonds, City staff has selected the following firms as part of the bond issuance:
Municipal Advisor: Urban Futures, Inc.
Bond and Disclosure Counsel: Stradling Yocca Carlson & Rauth LLP Underwriter: BofA Securities, Inc.
Underwriter’s Counsel: Hawkins Delafield & Wood LLP
Trustee/Filing Agent: Wilmington Trust, N.A.
Conclusion and Recommendation
Staff recommends that the City Council adopt a Resolution (Attachment 1) of the City Council of the City of Pismo Beach making required findings authorizing the execution and delivery of documents relating to the sale and issuance of not to exceed $48,500,000 Pismo Beach Public Financing Agency Series 2024A Lease Revenue Bonds (Public Council Agenda 05-07-2024 11.A-4
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Safety Facility Project) to finance construction of a Public Safety Facility Project and authorizing and directing certain actions in connection therewith.
Staff recommends that the Board of the Pismo Beach Public Financing Agency adopt a Resolution (Attachment 2) of the Pismo Beach Public Financing Agency approving the execution and delivery of documents in connection with the sale and issuance of the Pismo Beach Public Financing Agency Series 2024A Lease Revenue Bonds (Public Safety Facility Project) in a principal amount not to exceed $48,500,000 and authorizing and directing certain actions in connection therewith.
FISCAL IMPACT:
The attached resolutions and other documents provide a not-to-exceed principal amount of $48,500,000. This figure represents an upper limit, while the actual proceeds from the bonds are anticipated to be approximately $41,106,732 (net of finance charges), reflecting the current estimated cost of the Facility Project. Based on these projections, staff expects to issue approximately $38,530,000 in principal amount of the 2024A Lease Revenue Bonds for Public Safety Facility. Annual lease payments (amortized over a period of 30 years), payable from the City’s General Fund and expected to be supported by amounts transferred from the Parking Enterprise Fund to the General Fund, are expected to be approximately $2.5 million per year. Total aggregate base rental payments are estimated to be $76.1 million over the 30-year period. The final payment date of the Bonds will be December 1, 2054 and no later than December 1, 2055. In accordance with Government Code § 5852.1, good faith estimates are provided with respect to the Bonds below.
Table 1: 2024A Lease Revenue Bonds for Public Safety Facility Financing Terms and Structure*
Description Details
Term 30 years
True Interest Rate 4.40%
Principal Amount $38,530,000 + Premium $2,928,034
Matures December 1, 2054
Finance Charge $351,302
Proceeds Amount (for
Facility Project) $41,106,732
Total Base Rental Payment $76,130,243
Annual Base Rental Payment General Fund $2.5 million/year Call Provisions 10-year call with no prepayment penalty of outstanding par amount
*Preliminary and subject to change.
ATTACHMENTS:
1. City Resolution
2.Pismo Beach Public Financing Agency Resolution
3. Second Supplement to Lease Agreement (online attachment) Council Agenda 05-07-2024 11.A-5
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4. Second Supplement to Site Lease (online attachment)
5. Second Supplement to Indenture (online attachment)
6. Second Supplement to Assignment Agreement (online attachment)
7. Preliminary Official Statement (online attachment)
8. Bond Purchase Agreement (online attachment)
9. Continuing Disclosure Certificate (online attachment) Online attachments are available online in the Access Pismo public records portal at www.pismobeach.org/accesspismo2 , or upon request from the City Clerk’s Office.
Submitted by: Nadia Feeser, Administrative Services Director City Manager Approval:
2 Full URL:
https://accesspismo.pismobeach.org/WebLink/DocView.aspx?id=529015&dbid=0&repo=Laserfiche Council Agenda 05-07-2024 11.A-6
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RESOLUTION NO. R-2024-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PISMO BEACH,
CALIFORNIA MAKING REQUIRED FINDINGS AUTHORIZING THE EXECUTION
AND DELIVERY OF DOCUMENTS RELATING TO THE SALE AND ISSUANCE OF NOT TO EXCEED $48,500,000 PISMO BEACH PUBLIC FINANCING AGENCY SERIES 2024A LEASE REVENUE BONDS (PUBLIC SAFETY FACILITY PROJECT)
TO FINANCE CONSTRUCTION OF A PUBLIC SAFETY FACILITY PROJECT AND
AUTHORIZING AND DIRECTING CERTAIN ACTIONS IN CONNECTION
THEREWITH
WHEREAS, the City of Pismo Beach (the “City”) is a municipal corporation and a general law city duly organized and existing under and pursuant to the Constitution and laws of the State of California (the “State”); and
WHEREAS, the Pismo Beach Public Financing Agency (the “Agency”) has assisted the City to finance certain improvements of the City through the prior issuance of various series of bonds (the “Prior Bonds”) pursuant to that certain Indenture, dated as of June 1, 2017, as supplemented by a First Supplement to Indenture, dated as of December 1, 2017 (together, the “Original Indenture”), each by and between the Agency and Wilmington Trust, N.A., as trustee (the “Trustee”); and WHEREAS, in connection with the issuance of the Prior Bonds, the Agency and the City entered into that certain Site and Facilities Lease, dated as of June 1, 2017, as supplemented by a First Supplement to Site and Facilities Lease, dated as of December 1, 2017 (together, the “Original Site Lease”), pursuant to which the City leased to the Agency certain real property and the improvements thereon (the “Leased Property”), and that certain Lease Agreement, dated as of June 1, 2017, as supplemented by the First Supplement to Lease Agreement dated as of December 1, 2017 (together, the “Original Lease Agreement”), pursuant to which the Agency subleased the Leased Property back to the City; and
WHEREAS, the Original Indenture allows for the issuance of Additional Bonds (as such term is defined in the Original Indenture) to finance additional improvements for the City; and
WHEREAS, the City desires to cause the Agency to issue the Pismo Beach Public Financing Agency Series 2024A Lease Revenue Bonds (Public Safety Facility Project), in the aggregate principal amount not to exceed $48,500,000 (the “2024 Bonds”), which 2024 Bonds will be secured by certain Base Rental Payments (as such term is defined in the Original Indenture) to be made pursuant to the Lease (as defined below), in order to provide financing for the costs of the design and construction of a public safety facility and related improvements to be located within the City (the “Project”); and WHEREAS, to accomplish the sale, preparation and issuance of the 2024 Bonds, the City and the Agency desire to enter into a Second Supplement to Site and Facilities Lease Attachment 1
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(the “Second Supplement to Site Lease” and, together with the Original Site Lease, the “Site Lease”) and a Second Supplement to Lease Agreement (the “Second Supplement to Lease Agreement” and together with the Original Lease Agreement, the “Lease”), in order to make certain amendments thereto; and
WHEREAS, to facilitate the issuance of the 2024 Bonds, the City desires to approve the Agency’s execution and delivery of a Second Supplement to Indenture (the “Second Supplement to Indenture”), by and between the Agency and the Trustee, and a Second Supplement to Assignment Agreement (the “Second Supplement to Assignment Agreement”), by and between the Agency and the Trustee; and WHEREAS, the 2024 Bonds will be issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, commencing with Section 6584 of the California Government Code (the “Act”); and
WHEREAS, the City and the Agency have selected BofA Securities, Inc. (the “Underwriter”) to serve as the underwriter of the 2024 Bonds and, in connection therewith, to purchase the 2024 Bonds from the Agency pursuant to a Bond Purchase Agreement (the “Bond Purchase Agreement”); and
WHEREAS, Rule 15c2-12 promulgated under the Securities Exchange Act of 1934, as amended (“Rule 15c2-12”), requires that, in order to be able to purchase or sell the 2024 Bonds, the Underwriter thereof must have reasonably determined that the City has undertaken in a written agreement or contract for the benefit of the holders of the 2024 Bonds to provide disclosure of certain financial information and certain events on an ongoing basis; and
WHEREAS, in order to cause such requirement to be satisfied, the City desires to execute and deliver a Continuing Disclosure Certificate (the “Continuing Disclosure Certificate”); and
WHEREAS, a form of the Preliminary Official Statement with respect to the 2024 Bonds (the “Preliminary Official Statement”) has been prepared; and WHEREAS, the City is a member of the Agency and the Project is located within the boundaries of the City; and
WHEREAS, the City has prior to the consideration of this Resolution held a public hearing on the issuance of the 2024 Bonds in accordance with Section 6586.5 of the Act, which hearing was held at 760 Mattie Road, Pismo Beach, California, on May 7, 2024; and WHEREAS, in accordance with Section 6586.5 of the Act, notice of such hearing was published once at least five days prior to the hearing in a newspaper of general circulation in the City; and
WHEREAS, the City Council has been presented with the form of each document referred to herein to be executed and delivered in connection with the financing contemplated Attachment 1
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hereby, and the City Council desires to authorize and direct the execution of such documents and the consummation of such financing; and
WHEREAS, all acts, conditions and things required by the Constitution and laws of the State to exist, to have happened and to have been performed precedent to and in connection with the issuance of the 2024 Bonds do exist, have happened and have been performed in regular and due time, form and manner as required by law, and the City is now duly authorized and empowered, pursuant to each and every requirement of law, to consummate such financing for the purpose, in the manner and upon the terms herein provided.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of Pismo Beach as follows:
SECTION 1. Approval of Recitals. Each of the above recitals is true and correct.
SECTION 2. Findings and Determinations.
A.The City Council hereby specifically finds and declares that each of the statements, findings and determinations of the City set forth in the foregoing recitals and in the preambles of the documents approved herein is true and correct.
B.Following a duly noticed and conducted public hearing, the City Council hereby finds and determines that there are significant public benefits to the citizens of the City through the use of the Act to assist the City with the financing for the Project and the issuance of the 2024 Bonds and otherwise hereunder within the meaning of Section 6586(a)-(d), inclusive, of the Act and that the issuance of the 2024 Bonds and related transactions will result in more efficient delivery of local agency services to residential and commercial development.
SECTION 3. Authorization of 2024 Bonds. The City Council hereby authorizes the preparation, sale and issuance of the 2024 Bonds in one or more series in a combined aggregate principal amount not to exceed $48,500,000 in order to finance: (i) design and construction of the Project, and (ii) costs of issuing the 2024 Bonds. The 2024 Bonds may be issued as tax-exempt or taxable bonds, or any combination thereof.
SECTION 4. Approval of Second Supplement to Lease Agreement. The form of the Second Supplement to Lease Agreement presented at this meeting and on file with the City Clerk (the “Clerk”), is hereby approved. Each of the City Manager of the City (the “City Manager”) and the Administrative Services Director of the City (the “Administrative Services Director”) or their authorized designee(s), and any other proper officer of the City (collectively, the “Authorized Officers”), is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver to the Second Supplement to Lease Agreement in substantially said form, with such changes therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the amount of the principal component of the payments attributable to the Second Supplement to Lease Agreement shall not exceed $48,500,000 and the final scheduled payment shall not be Attachment 1
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later than December 1, 2055 (subject to extension as provided in the Lease). The property to be leased pursuant to the Second Supplement to Lease Agreement to finance the Project shall consist of the Leased Property, provided that, in the event that it is determined by an Authorized Officer that there are limitations or restrictions on the ability of the City to lease or sublease any portion of the Leased Property as contemplated by the Lease, the Authorized Officers may designate other or additional real property of the City to be leased or subleased pursuant to the Site Lease and the Lease, with such designation to be conclusively evidenced by the execution and delivery of the Lease by the Authorized Officer, and the City Council hereby finds and determines that the annual lease payments and additional payments due under the Original Lease Agreement as amended and supplemented by the Second Supplement to Lease Agreement in each fiscal year will not exceed the fair rental value of the Leased Property during such fiscal year.
SECTION 5. Approval of Second Supplement to Site Lease. The form of the Second Supplement to Site Lease presented at this meeting and on file with the Clerk is hereby approved. Each of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Second Supplement to Site Lease in substantially said form, with such changes therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.
SECTION 6. Approval of Second Supplement to Indenture. The form of the Second Supplement to Indenture presented at this meeting and on file with the Clerk is hereby approved for execution and delivery by the Agency.
SECTION 7. Approval of Second Supplement to Assignment Agreement. The Second Supplement to Assignment Agreement substantially in the form on file with the Clerk is hereby approved for execution and delivery by the Agency.
SECTION 8. Approval of Bond Purchase Agreement. The form of the Bond Purchase Agreement presented at this meeting and on file with the Clerk is hereby approved. Each of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Bond Purchase Agreement in substantially said form, with such changes therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the aggregate underwriter’s discount shall not exceed 0.30% of the aggregate principal amount of the 2024 Bonds (not including any original issue discount or premium) and the all-in true interest cost applicable to the 2024 Bonds shall not exceed 5.50% per annum.
SECTION 9. Approval of Preliminary Official Statement; Official Statement. The preparation and distribution of the Preliminary Official Statement, in substantially the form presented at this meeting and on file with the Clerk, with such changes, insertions and omissions therein as may be approved by an Authorized Officer, is approved. The Authorized Officers are hereby authorized to sign a certificate pursuant to Rule relating to the Preliminary Official Statement. Each Authorized Officer is hereby authorized and Attachment 1
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directed to execute, approve and deliver the final Official Statement (the “Official Statement”) in the form of the Preliminary Official Statement, with such changes, insertions and omissions as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. The Underwriter is hereby authorized to distribute copies of the Preliminary Official Statement to persons who may be interested in the initial purchase of the 2024 Bonds and are directed to deliver copies of the final version of the Official Statement to all actual initial purchasers of the 2024 Bonds.
SECTION 10. Continuing Disclosure Certificate. The form of the Continuing Disclosure Certificate presented at this meeting and on file with the Clerk is hereby approved. Each of the Authorized Officers is hereby authorized and directed, for and in the name and on behalf of the City, to execute and deliver the Continuing Disclosure Certificate in substantially said form, with such changes therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.
SECTION 11. Retention of Financing Professionals. Wilmington Trust, N.A. shall continue to act as trustee under the Second Supplement to Indenture unless and until replaced in accordance with the provisions of the Original Indenture. Stradling Yocca Carlson & Rauth LLP is hereby appointed as Bond Counsel and Disclosure Counsel, and Urban Futures, Inc. is hereby appointed as Municipal Advisor. The City Manager or any Authorized Officer is hereby authorized and directed to execute contracts with such consultants.
SECTION 12. Attestations. The Clerk and such person or persons as may have been designated by the Clerk to act on her behalf, are hereby authorized and directed to attest the signature of the Authorized Officers designated herein to execute any documents described herein, and to affix and attest the seal of the City, as may be required or appropriate in connection with the execution and delivery of the Second Supplement to Lease Agreement and the Second Supplement to Site Lease.
SECTION 13. Official Actions. The Authorized Officers are each hereby authorized and directed, jointly and severally, to do any and all things and to execute and deliver any and all documents which each may deem necessary or advisable (including the payment of other costs of issuance approved by the City Manager or his designee) in order to consummate the sale and issuance of the 2024 Bonds and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution, the 2024 Bonds, the Second Supplement to Lease Agreement, the Second Supplement to Indenture, the Second Supplement to Site Lease, including but not limited to, adding property to, substituting property for or removing property from the Leased Property and making such further amendments to the Original Site Lease, the Original Lease Agreement and the Original Indenture as may be necessary to facilitate the issuance of the 2024 Bonds in accordance with the terms of such agreements and paying for fees and other costs of issuance of the 2024 Bonds as agreed to by the City and the respective parties thereto and causing documents to be recorded with the County Recorder of San Luis Obispo County. Such actions heretofore taken by such officers or designees are hereby ratified, Attachment 1
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confirmed and approved. Each of the Authorized Officers is hereby authorized and directed to determine which of the other real property assets of the City, if any, shall be included as a part of the Site (as such term is defined in the Original Site Lease) and the Leased Property.
The City Manager or any other Authorized Officer, acting on behalf of the City, is hereby authorized to evaluate and determine whether to (a) procure a municipal bond insurance policy (“Insurance Policy”) and/or a municipal bond debt service reserve fund surety or policy (a “Reserve Policy”) with respect to the 2024 Bonds, and (b) to negotiate and enter into such contracts or agreements as may be necessary and appropriate in connection with the purchase of such Insurance Policy and/or Reserve Policy.
SECTION 14. Good Faith Estimates. In accordance with Government Code Section 5852.1, there has been presented to this City Council in the Staff Report accompanying this Resolution certain good faith estimates provided to the City by its municipal advisor with respect to the 2024 Bonds.
SECTION 15. Effective Date. This Resolution shall take effect immediately upon its passage and adoption.
UPON MOTION OF Council Member , seconded by Council Member , the foregoing resolution was adopted by the City Council of the City of Pismo Beach this 7th day of May 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Mayor Erica Inderlied, City Clerk
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the City of Pismo Beach, California, on _______________________. ________________________
Erica Inderlied, City Clerk
Attachment 1
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RESOLUTION NO. PFA2-R-2024-XXX
A RESOLUTION OF THE PISMO BEACH PUBLIC FINANCING AGENCY
APPROVING THE EXECUTION AND DELIVERY OF DOCUMENTS IN CONNECTION
WITH THE SALE AND ISSUANCE OF THE PISMO BEACH PUBLIC FINANCING AGENCY SERIES 2024A LEASE REVENUE BONDS (PUBLIC SAFETY FACILITY PROJECT) IN A PRINCIPAL AMOUNT NOT TO EXCEED $48,500,000 AND
AUTHORIZING AND DIRECTING CERTAIN ACTIONS IN CONNECTION
THEREWITH
WHEREAS, the Pismo Beach Public Financing Agency (the “Agency”) is a joint exercise of powers authority with the authority to assist in the financing of the construction, reconstruction, modernization and equipping of certain capital improvements on behalf of the City of Pismo Beach (the “City”); and
WHEREAS, the Agency has assisted the City to finance certain improvements of the City through the prior issuance of various series of bonds (the “Prior Bonds”) pursuant to that certain Indenture, dated as of June 1, 2017, as supplemented by a First Supplement to Indenture, dated as of December 1, 2017 (together, the “Original Indenture”), each by and between the Agency and Wilmington Trust, N.A., as trustee (the “Trustee”); and WHEREAS, in connection with the issuance of the Prior Bonds, the Agency and the City entered into that certain Site and Facilities Lease, dated as of June 1, 2017, as supplemented by a First Supplement to Site and Facilities Lease, dated as of December 1, 2017 (together, the “Original Site Lease”), pursuant to which the City leased to the Agency certain real property and the improvements thereon (the “Leased Property”), and that certain Lease Agreement, dated as of June 1, 2017, as supplemented by the First Supplement to Lease Agreement, dated as of December 1, 2017 (together, the “Original Lease Agreement”), pursuant to which the Agency subleased the Leased Property back to the City; and
WHEREAS, in connection with the issuance of the Prior Bonds, the Agency and the Trustee entered into an Assignment Agreement, dated as of June 1, 2017, as supplemented by a First Supplement to Assignment Agreement, dated as of December 1, 2017 (together, the “Original Assignment Agreement”), each by and between the Agency and the Trustee pursuant to which, among other things, all rights to receive the Base Rental Payments (as such term is defined in the Original Indenture) under the Original Lease Agreement have been assigned without recourse by the Agency to the Trustee; and
WHEREAS, the Original Indenture allows for the issuance of Additional Bonds (as such term is defined in the Original Indenture) to finance additional improvements for the City; and
WHEREAS, the Agency desires to issue the Pismo Beach Public Financing Agency Series 2024A Lease Revenue Bonds (Public Safety Facility Project), in the aggregate Attachment 2
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principal amount not to exceed $48,500,000 (the “2024 Bonds”), which 2024 Bonds will be secured by certain Base Rental Payments to be made pursuant to the Lease (as defined below), in order to provide financing for the costs of the design and construction of a public safety facility and related improvements to be located within the City (the “Project”); and
WHEREAS, to accomplish the sale, preparation and issuance of the 2024 Bonds, the City and the Agency desire to enter into a Second Supplement to Site and Facilities Lease (the “Second Supplement to Site Lease” and, together with the Original Site Lease, the “Site Lease”) and a Second Supplement to Lease Agreement (the “Second Supplement to Lease Agreement” and together with the Original Lease, the “Lease”), in order to make certain amendments thereto; and
WHEREAS, to facilitate the issuance of the 2024 Bonds, the Agency desires to enter into a Second Supplement to Indenture (the “Second Supplement to Indenture”), by and between the Agency and the Trustee, and a Second Supplement to Assignment Agreement (the “Second Supplement to Assignment Agreement”), by and between the Agency and the Trustee; and
WHEREAS, the 2024 Bonds will be issued pursuant to the Marks-Roos Local Bond Pooling Act of 1985, commencing with Section 6584 of the California Government Code (the “Act”); and
WHEREAS, the City and the Agency have selected BofA Securities, Inc. (the “Underwriter”) to serve as the underwriter of the 2024 Bonds and, in connection therewith, to purchase the 2024 Bonds from the Agency pursuant to a Bond Purchase Agreement (the “Bond Purchase Agreement”); and
WHEREAS, a form of the Preliminary Official Statement with respect to the 2024 Bonds (the “Preliminary Official Statement”) has been prepared; and WHEREAS, the City is a member of the Agency and the Project is located within the boundaries of the City; and
WHEREAS, the City has prior to the consideration of this Resolution held a public hearing on the issuance of the 2024 Bonds in accordance with Section 6586.5 of the Act, which hearing was held at 760 Mattie Road, Pismo Beach, California, on May 7, 2024; and WHEREAS, in accordance with Section 6586.5 of the Act, notice of such hearing was published once at least five days prior to the hearing in a newspaper of general circulation in the City; and
WHEREAS, the Board of Directors of the Agency (the “Board of Directors”) has been presented with the form of each document referred to herein to be executed and delivered in connection with the financing contemplated hereby, and the Board of Directors desires to authorize and direct the execution of such documents and the consummation of such financing.
Attachment 2
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NOW, THEREFORE BE IT RESOLVED by the Board of Directors of the Pismo Beach Public Financing Agency as follows:
SECTION 1. Approval of Recitals; Finding of Public Benefits. Each of the above recitals is true and correct. The Board of Directors has determined and hereby finds that the Agency’s assistance in financing the Project by the issuance of the 2024 Bonds will result in significant public benefits of the types described in Section 6586 (a) through (d), inclusive, of the Act, in that the issuance of the 2024 Bonds and related transactions will result in more efficient delivery of local agency services to residential and commercial development.
SECTION 2. Second Supplement to Site Lease. The Second Supplement to Site Lease presented at this meeting is approved. Each of the Chair, Vice Chair, Executive Director, Assistant Executive Director, Treasurer and Secretary of the Agency, or their authorized designee(s), and any other proper officer of the Agency (collectively, the “Authorized Officers”), in the name and on behalf of the Agency, is authorized and directed to execute and deliver the Second Supplement to Site Lease. The Second Supplement to Site Lease shall be executed in substantially the form hereby approved, with such changes therein as the Authorized Officer executing the same may require or approve (including, without limitation, the description of the Leased Property to be leased thereunder), such approval to be conclusively evidenced by the execution and delivery thereof.
SECTION 3. Second Supplement to Lease Agreement. The Second Supplement to the Lease Agreement presented at this meeting is approved. Each Authorized Officer, in the name and on behalf of the Agency, is authorized and directed to execute and deliver the Second Supplement to Lease Agreement. The Second Supplement to Lease Agreement shall be executed in substantially the form hereby approved, with such changes therein as the Authorized Officer executing the same may require or approve (including, without limitation, the description of the Leased Property to be leased thereunder), such approval to be conclusively evidenced by the execution and delivery thereof.
SECTION 4. Second Supplement to Indenture. The Second Supplement to the Indenture presented at this meeting is approved. Each Authorized Officer, in the name and on behalf of the Agency, is authorized and directed to execute and deliver Second Supplement to Indenture. The Second Supplement to Indenture shall be executed in substantially the form hereby approved, with such changes therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, that such changes shall be consistent with the terms of the 2024 Bonds established at a negotiated sale pursuant to the Bond Purchase Agreement; provided further, that the aggregate principal amount of the 2024 Bonds shall not exceed $48,500,000, the final maturity date of the 2024 Bonds shall be no later than December 1, 2055 and the true interest cost applicable to the 2024 Bonds shall not exceed 5.50% per annum. In the event that it is determined by the Treasurer, or her designee, that the funding or financing of capitalized interest on the 2024 Bonds would be in the best interests of the Agency, the Second Supplement to the Indenture may be modified to provide for capitalized interest on such basis as is Attachment 2
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determined by the Treasurer or her designee, such determination to be conclusively evidenced by the execution and delivery of the Second Supplement to the Indenture by an Authorized Officer.
SECTION 5. Approval of 2024 Bonds. The issuance by the Agency of not to exceed $48,500,000 aggregate principal amount of the 2024 Bonds, in one or more series, in the principal amounts, bearing interest at the rates and maturing on the dates as specified in the Second Supplement to Indenture as finally executed, is hereby authorized and approved. The 2024 Bonds may be issued as tax-exempt or taxable bonds, or any combination thereof.
SECTION 6. Second Supplement to Assignment Agreement. The Second Supplement to Assignment Agreement presented at this meeting is approved. Each Authorized Officer, in the name and on behalf of the Agency, is authorized and directed to execute and deliver the Second Supplement to Assignment Agreement. The Second Supplement to Assignment Agreement shall be executed in substantially the form hereby approved, with such changes therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof.
SECTION 7. Bond Purchase Agreement. The Bond Purchase Agreement presented at this meeting is approved. Each Authorized Officer, in the name and on behalf of the Agency, is authorized and directed to execute and deliver the Bond Purchase Agreement.
The Bond Purchase Agreement shall be executed in substantially the form hereby approved, with such changes therein as the Authorized Officer executing the same may require or approve, such approval to be conclusively evidenced by the execution and delivery thereof; provided, however, that the aggregate underwriter’s discount shall not be in excess of 0.30% of the aggregate principal amount of the 2024 Bonds (not including original issue discount or premium).
SECTION 8. Preliminary Official Statement; Official Statement. The preparation and distribution of the Preliminary Official Statement, in substantially the form presented at this meeting, with such changes therein as may be approved by an Authorized Officer, is approved. The Authorized Officers are hereby authorized to sign a certificate pursuant to Rule 15c2-12 promulgated under the Securities Exchange Act of 1934 relating to the Preliminary Official Statement. Each Authorized Officer is hereby authorized and directed to execute, approve and deliver the final Official Statement (the “Official Statement”) in the form of the Preliminary Official Statement, with such changes as may be approved by an Authorized Officer, such approval to be conclusively evidenced by the execution and delivery thereof. The Underwriter is hereby authorized to distribute copies of the Preliminary Official Statement to persons who may be interested in the initial purchase of the 2024 Bonds and are directed to deliver copies of the final version of the Official Statement to all actual initial purchasers of the 2024 Bonds.
SECTION 9. Official Actions. The officers and agents of the Agency are hereby authorized and directed, jointly and severally, to do any and all things which they may deem necessary or advisable in order to consummate the transactions herein authorized Attachment 2
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and otherwise to carry out, give effect to and comply with the terms and intent of this Resolution, including but not limited to, adding property to, substituting property for, or removing property from the Leased Property and making such further amendments to the Original Site Lease, the Original Lease Agreement, the Original Assignment Agreement and the Original Indenture as may be necessary to facilitate the issuance of the 2024 Bonds in accordance with the terms of such agreements and paying for fees and other costs of issuance of the 2024 Bonds as agreed to by the City and the respective parties thereto. All actions heretofore taken by the officers and agents of the Agency with respect to the transactions set forth above are hereby approved, confirmed and ratified.
SECTION 10. Good Faith Estimates. In accordance with Government Code Section 5852.1, there has been presented to this Board of Directors in the Staff Report accompanying this Resolution certain good faith estimates provided to the Agency by its municipal advisor with respect to the 2024 Bonds.
SECTION 11. Effect. This Resolution shall take effect immediately upon its passage and adoption.
UPON MOTION OF Board Member , seconded by Board Member , the foregoing resolution was adopted by the Governing Board of the Pismo Beach Public Financing Agency this 7th day of May 2024, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
RECUSED:
Approved: Attest:
________________________ ________________________
Ed Waage, Chairperson Erica Inderlied, Secretary
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the official seal of the Pismo Beach Public Financing Agency, on _______________________. ________________________
Erica Inderlied, Secretary
Attachment 2
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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.A
Meeting Date: May 7, 2024
TITLE:
SLOCOG Regional Safety Action Plan—Road to Zero
RECOMMENDATION:
Receive a presentation from SLOCOG on the Regional Safety Action Plan.
DISCUSSION:
In October 2023, the San Luis Obispo Council of Governments (SLOCOG) Board of Directors made a Policy Proclamation – “‘Road to Zero’ Regional Fatalities and Serious Injuries by 2050” – that is a commitment by the SLOCOG Board to an eventual goal of zero roadway fatalities and serious injuries. This was the result of an ongoing effort to address the fact that fatalities on the nation’s roads have remained high for the past decade, and in the San Luis Obispo region there were a total of 155 fatalities and 832 serious life-changing injuries between 2018 and 2022.
SLOCOG received a Federal Safe Streets for All (SS4A) grant to prepare a Regional Safety Action Plan to identify actions that can significantly make a difference in evolving our roadway network into a safe mobility network. The Plan will help formulate the best approaches, philosophies, and programs to meet the region’s current and future road safety needs, while identifying opportunities for beneficial safety investments. The plan takes a regional look to establish vision and goals, include holistic and inclusive public engagement, conduct crash data and equity analysis to enhance locally adopted safety plans, and provide data and engagement tools for ongoing use. The plan will conclude with project and programmatic strategies and recommendations for both improving the built environment with safety countermeasures but also regional public safety engagement activities such as campaigns to discourage speeding, drunk, and distracted driving. The plan will position the region and agencies to be eligible for future state and federal implementation grants.
FISCAL IMPACT:
There is no fiscal impact associated with this item.
Submitted by:
Mike James, Assistant City Manager
City Manager Approval:
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PISMO BEACH CITY COUNCIL STAFF REPORT
Agenda Item #12.B
Meeting Date: May 7, 2024
TITLE:
Residential Sidewalk Policy
RECOMMENDATION:
Provide staff direction and clarification on a residential sidewalk policy.
DISCUSSION:
Over the last several years the City Council has received information on sidewalks including responsibility for their construction and maintenance.
Public improvements, including curbs, gutters, sidewalks, streets and other infrastructure are typically installed by developers when tracts are developed. These costs are factored into the selling price of the houses and therefore ultimately paid for by the homeowner.
Streets and Highways Code Section 5610 places the maintenance of sidewalks on the adjacent property owner in residential neighborhoods. It has long been the City’s position that the City does not install sidewalks and that it is homeowners’ responsibility to build missing sidewalks throughout the City when a parcel is developed, redeveloped, or a major modification has been made to an existing house.
On November 1, 2022, the City Council gave direction to staff that moving forward sidewalks shall be installed in the following circumstances:
New development – In practice, this means development of a vacant lot Redevelopment – An existing dwelling is completely, or mostly demolished and a new dwelling is built in its place.
50% renovation/addition – The addition and/or remodel of a dwelling when the total square footage being added and/or remodeled equals 50% or more of the existing dwelling.
Accessory Dwelling Units (ADU) shall not be included in the definition of new construction, or the calculation of remodel percentage for the requirement of sidewalk.
Sidewalk shall not be required where not feasible, i.e. not enough right-of-way.
More recently, at the February 16, 2024, Goal-Setting Workshop the City Council directed staff to return with a revised sidewalk policy that would require sidewalk for projects that met the criteria outlined above only when 50% or more of the street already had sidewalks, and when City right-of-way is 50 feet wide or more, and to not require sidewalks in “Old Shell Beach,” defined as Cliff Avenue to Vista Del Mar Avenue.
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Items Needing Clarification
Staff seeks clarification on several points and will return at the next Council meeting with a resolution that reflects the City Council's direction on this item.
Defining Fifty Percent
Depending on the definition of “street,” there are currently no streets in the city that have sidewalk on 50% of one side of the street, however there are some streets, such as Longview Avenue and Ocean Boulevard, that have sidewalk on one side of the street.
Does this mean that 50% of the street has sidewalk and therefore, the other side of the street shall install sidewalk?
Figure 1. Longview Avenue at Fresno Street
Figure 1, above, shows a section of Longview Avenue with sidewalk on the right side of the street, however a 2-foot substandard sidewalk on the left side of the street.
Figure 2. Longview Avenue from Taft Street to Bakersfield Street Figure 2, above, shows Longview Avenue from Taft Street, on the left side of the picture to Bakersfield Street, on the right side of the of the picture with half of the block having a 4-foot sidewalk and the other half having a 3-foot sidewalk. 4’ Sidewalk 3’ Sidewalk
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Bluff Top Areas
Ocean Boulevard currently has a bluff top trail from just north of Wawona Avenue to the end of the street, which is just north of Vista del Mar Avenue. However, the city continues to see bluff failure in this area, which has required the relocation of the path and relocation and/or removal of several benches. Should sidewalk be required on the inland side of the street to allow for planned retreat?
Substandard Sidewalk
Most of the streets in Pismo Heights have a substandard sidewalk which varies in width from 2 feet to 3 feet. Should these sidewalks be brought up to current standards? Figure 3. Bakersfield Street
Figure 3, above, shows Bakersfield Street with substandard sidewalks on each side of the street.
For reference, staff has provided a map of the city (Attachment 1) showing the current status of sidewalks in each neighborhood.
Additionally Required Work
If the City Council’s direction is to not require sidewalks in Shell Beach, the current Council-adopted Shell Beach Design Standards and Guidelines (Guidelines) and the General Plan and Local Coast Program (General Plan) will need to be revised. Currently, Guidelines require sidewalks when a new single-family or multi-family home is built.
Specifically, SP S.1 page 7 of the Guidelines states:
“Where a new single-family structure is proposed on a lot without curb, gutter and/or sidewalk improvements within the street right-of-way, the City shall require the installation of one (1) or all of these improvements as part of a project approval.
Permeable pavers, decomposed granite or decorative pea gravel shall be provided Council Agenda 05-07-2024 12.B-3
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within the street right-of-way in instances where the installation of a standard sized sidewalk is determined to be infeasible due to lot size limitations to the satisfaction of the Director of Public Works. Changes to existing drainage patterns shall not be altered in a way that would negatively affect neighborhood properties.” and page 19 of the Guidelines states:
“Where a new multi-family development is proposed on a lot without curb, gutter and/or sidewalk improvements within the street right-of-way, the City shall require the installation of one (1) or all of these improvements as part of a project approval.
Permeable pavers, decomposed granite or decorative pea gravel shall be provided within the street right-of-way in instances where the installation of a standard sized sidewalk is determined to be infeasible due to lot size limitations to the satisfaction of the Director of Public Works. Changes to existing drainage patterns shall not be altered in a way that would negatively affect neighborhood properties.” These sections of the Guidelines will need to be revised or removed so that the Guidelines are not in conflict with Council’s direction.
The Circulation Element of the City’s General Plan lists four goals, one of which states the City will “plan and provide pedestrian and bicycle facilities to encourage and meet the walking and bicycling needs of the City.” Further, Subsection 2.4 “Existing Facilities” of Section 4.0 “Multimodal Policies” states that the City will “… Complete a network of bicycle lanes and paths, sidewalks and pedestrian paths within existing developed parts of the City, and extend the system to serve new growth areas.” Subsection 2.10 “Universal design” states that the City will “Provide pedestrian facilities that are accessible to persons with disabilities and ensure that roadway improvement projects address accessibility by using universal design concepts.” These subsections of the General Plan will need to be revised to only apply to new tracts and not infill development, which is in conflict with Council’s current direction. These changes could be incorporated into the current General Plan and Local Coastal Plan revisions.
Conclusion and Recommendation
Staff recommends that the City Council provide direction and clarification regarding the following components of the City’s residential sidewalk development policy:
How to define “fifty percent” as it relates to existing sidewalk Whether to account for coastal retreat when developing blufftop streets Whether to require that substandard sidewalks be brought to current standard In addition to the items above, staff will carry forward the existing aspects of residential sidewalk development policy pertaining to new development, redevelopment, and 50%- or-more remodels, with ADUs being excepted from those calculations, and with “Old Shell Beach” being excepted from the requirements entirely, unless the Council directs otherwise at this time.
Staff will return on May 21, 2024 with a resolution for the Council’s adoption. Staff recommends that the resolution be retroactive and supersede any conditions of approval Council Agenda 05-07-2024 12.B-4
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for all projects that have planning approval, but not yet an issued building permit, as of the date of the adoption of the resolution. Staff further recommends that the City Council direct staff to update the Shell Beach Design Guidelines and applicable General Plan policies so that those documents are not in conflict with the Residential Sidewalk Policy.
FISCAL IMPACT:
There is no direct fiscal impact associated with this report.
ATTACHMENTS:
1. Map of current neighborhood sidewalk status
Submitted by: Benjamin A. Fine, P.E., Director of Public Works/City Engineer City Manager Approval:
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HOA – Policy does not apply
Does not have sidewalk, nor streets with 50% sidewalk
Has sidewalk
Attachment 1
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HOA – Policy does not apply
Does not have sidewalk, nor streets with 50% sidewalk
Has sidewalk
Blufftop sidewalk on oceanside of street
Attachment 1
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HOA – Policy does not apply
Does not have sidewalk, nor streets
with 50% sidewalk
Has sidewalk
Sidewalk on one side of street
Missing some sidewalk
Attachment 1
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HOA – Policy does not apply
Has sidewalk
Attachment 1
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