Page | 1 City Council Meeting Minutes (June 18, 2024)
CITY OF SAN JUAN BAUTISTA
CITY COUNCIL
UNOFFICIAL MEETING MINUTES
JUNE 18, 2024
1. CALL TO ORDER
Mayor Freels called the regular meeting to order at 5:00 p.m. in the Council Chambers, 311 Second Street, San Juan Bautista California.
Mayor Freels announced that Mayor Pro Tem Jordan will not be in attendance at today’s meeting.
PLEDGE OF ALLEGIANCE
ROLL CALL
Present:
Councilmember John Freeman
Councilmember Jackie Morris-Lopez
Councilmember EJ Sabathia
Mayor Scott Freels
Absent:
Mayor Pro Tem Leslie Q. Jordan
Staff Present:
Don Reynolds, City Manager
Jon R. Giffen, City Attorney
Elizabeth Soto, CMC, CPMC, Acting City Clerk
2. CLOSED SESSION – 5:00 P.M. – 6:00 P.M.
The City Council will recess to closed session pursuant to:
a. Conference with Legal Counsel—Anticipated Litigation – (Significant exposure to litigation pursuant to paragraph (2) of subdivision (d) of Government Code section 54956.9: One case.).
b. Public Employee Performance Evaluation – (California Government Code section §54957(b)(1)) – the City Manager.
No public comment.
Mayor Freels adjourned to a closed session at 5:03 p.m.
Page | 2 City Council Meeting Minutes (June 18, 2024)
Mayor Freels reconvened the meeting at 6:03 p.m.
City Attorney Giffen reported that there was no reportable action.
Jill – one is for visitors and the other is for locals
3. PRESENTATION
A. Spirit of San Juan Annual Report
Jill Pagaran, Spirit of San Juan, provided an annual report for 2023/2024. The City Council thanked Ms. Pagaran for her presentation.
No public comments.
B. Caltrans Eucalyptus Tree Removal Project at US 101/Rocks Road Lisa Lowerison, Project Manager, Caltrans described the project that will take place along US Highway 101 and Rocks Road. The project aims to improve safety for the traveling public by removing trees near the roadway that are in declining health or pose a risk of falling onto the highway. Approximately 228 blue gum eucalyptus trees in poor health or weak condition within 40 to 60 feet of the pavement edge will be removed. Replacement planting with native species will be done to restore the landscape to a more native habitat and improve habitat for the California red-legged frog. The project cost is $2.6 million and is part of the State Highway Operation and Protection Program. Construction is scheduled to begin in September 2024 and end in November 2024.
The following members of the public commented on the report:
Elizabeth Welch
4. PUBLIC HEARING
A. Community Facilities District No. 2018-1 (“Copperleaf” and “Rancho Vista” Neighborhoods) Annual Levy
Doug Pike City Engineer (MNS Engineers) provided the report. The purpose of Community Facilities District No. 2018-01 is to collect funds from property owners to maintain certain public improvements within the boundaries of the district. These funds are used for services such as landscape maintenance, street lighting, streets, and sidewalks. The district was formed to levy a special tax to fund these public services and ensure that the improvements are built and maintained according to the City Engineer's standards. The district is responsible for managing the funds separately from other funds, and it is required to submit an annual report.
The annual special tax levy for the district is determined through a Resolution adopted by the City Council. The Method of Apportionment, which is outlined in the Formation Report, is used to calculate the annual special tax amount for each parcel in each tax area (Copperleaf and Rancho Vista). The Method of Apportionment allows for an annual escalator to the maximum special tax amounts. The annual escalator is equal to the greater of 2% or the annual Consumer Price Index-All Urban Consumers (CPI-U) for the San Francisco-Oakland-Hayward area. For Page | 3 City Council Meeting Minutes (June 18, 2024)
Fiscal Year 2024/25, the annual CPI-U was 3.80%. This percentage is then applied to the maximum special tax for each tax area, establishing the adjusted maximum special tax for the fiscal year.
Mayor Freels opened the public hearing.
No public comments.
Mayor Freels closed the public hearing.
MOTION:
Upon motion by Councilmember Freeman, second by Councilmember Sabathia, Resolution Levying the Annual Special Tax for Community Facilities District No. 2018-01, Fiscal Year 2024/25, was approved.
AYES: Councilmembers: Freeman, Morris-Lopez, Sabathia, and Mayor Freels; NOES: None; ABSENT: Mayor Pro Tem Jordan; ABSTAIN: None
B. Valle Vista Landscape and Lighting Maintenance Assessment District No. 1 for Fiscal Year 2024-25
Doug Pike City Engineer (MNS Engineers) provided the report. The proposed assessments for Fiscal Year 2024-25 have been increased to cover the cost of contract maintenance, but they are set below the maximum rates calculated at the formation of the District. The fiscal impact of the proposed maintenance within the Valle Vista Lighting and Landscaping Maintenance District is within the anticipated revenues, including reserves, indicating no additional financial burden.
Mayor Freels opened the public hearing.
The following members of the public commented on the report:
Elise Brentall, requested the item be tabled and expressed concerned regarding dying trees, brown grass, lack of tree maintenance, debris accumulation.
Sharon Gerber asked the item be tabled. There are issues such as, fence repairs not covered by the association, and the quality of work and maintenance of sidewalks.
Councilmember Sabathia asked about the annual increase.
Approximately $95 a month based on last year's expenditures. It is important to maintain a certain reserve to enable a level pay plan and prevent significant assessment jumps annually.
City Manager Don Reynolds requested the item be tabled for a later date to effectively address residents' questions and concerns.
Page | 4 City Council Meeting Minutes (June 18, 2024)
City Manager Reynolds announced that he will be scheduling a community meeting for the Valle Vista Landscape and Lighting Maintenance Assessment District to allow for public input.
5. PUBLIC COMMENT
Received comments from the following members of the public Laurie Tankersley reviewed upcoming events.
Sharon Gerber concerned with the increase in traffic.
6. INFORMATIONAL ITEMS AND REPORTS
A. Treasurer’s Report and Monthly Financial Statements
Acting Treasurer Wendy Cumming, CPA reported on the Financial statement for April 2024.
No public comment.
B. Reports from City Council Representatives to Regional Organizations and Committees
Councilmember Freeman and Mayor Freels reported on the meetings they attended.
No public comment.
C. City Council Announcements
Mayor Freels announced that on June 13th lifelong resident Richard Velasco passed away.
No public comment.
D. City Manager’s Report
City Manager Don Reynolds provided the report followed by a PowerPoint presentation.
The City Manager is actively working on Personnel Policies, specifically addressing Violence in the Workplace. The budget for the next fiscal year is almost ready. An analysis of Sales Tax is underway, as well as exploring other revenue potential. The City of Hollister is preparing a 270 Notice to terminate the fire contract, changing the contract end date from December 2025 to March 2025. There is a potential change in the fire services provided to the city and the need for further analysis of cost recovery options. Fire services are critical for public safety, and any changes in the contract can have significant implications for the community.
The City Manager highlights efforts related to historic preservation, including reviewing building changes without HRB review, issuing Stop Work Notices, and making inventories of eligible properties available online. Historic preservation is important for maintaining the city's cultural heritage and identity. Ensuring compliance with preservation regulations and providing public access to information about eligible properties helps protect and celebrate the city's history.
No public comment.
Page | 5 City Council Meeting Minutes (June 18, 2024)
a. Fire Department Update –
Nobody was present to report.
No public comment.
b. Sheriff Department Update –
No report.
No public comment.
c. Public Safety Department Update –
Public Safety Coordinator Roy Morales provided an update for May 2024.
No public comment.
7. CONSENT
A. Approve the Affidavit of Posting Agenda.
B. Workplace Violence Prevention Plan.
Recommendation: Approve a RESOLUTION adopting the City of San Juan Bautista Workplace Violence Prevention Plan for inclusion in the City’s Personnel Policies.
C. Adopting a List of Projects for Fiscal Year 2024-25 Funded by Sb 1: The Road Repair and Accountability Act of 2017.
Recommendation: Approve a RESOLUTION subject to final review, revision, and approval by the City Manager and the City Engineer a Resolution “Adopting the Fiscal Year 2024/25 List of Projects Funded by SB1: The Road Repair and Accountability Act.”.
D. Master Agreement Administering Agency-State Agreement for State Funded Projects.
Recommendation: Approve a RESOLUTION and agreement, subject to final review, revision, and approval by the City Manager and the City Attorney, and authorize the City Manager to execute the Agreement with the State of California through its Department of Transportation (Caltrans) to administer a state-funded road rehabilitation project.
E. Adoption of a Volunteer Program.
Recommendation: Approve a RESOLUTION naming volunteers as employees for the purpose of providing Workers’ Compensation benefits when that individual provides services to the City (Amended).
F. Approve the Regular Meeting Minutes of April 16, 2024.
G. Approve the Regular Meeting Minutes of May 21, 2024.
Page | 6 City Council Meeting Minutes (June 18, 2024)
No public comments.
MOTION:
Upon motion by Councilmember Freeman, second by Councilmember Sabathia, Consent Items A, B, C, D, E, F, and G, were approved.
AYES: Councilmembers: Freeman, Morris-Lopez, Sabathia, and Mayor Freels; NOES: None; ABSENT: Mayor Pro Tem Jordan; ABSTAIN: None
8. ACTION ITEMS
A. Fiscal Year 2024/25 Budget Adoption
Recommendation: Approve a RESOLUTION adopting the City Operations and Capital Improvement Budgets for Fiscal Year 2024/25.
City Manager Don Reynolds presented the City Operations and Capital Improvement Budgets for Fiscal Year 2024/25. The Strategic Plan for Fiscal Year 2024/25 includes 25 priorities that need to be completed, such as developing an Economic Development program, conducting facility assessment and inventory, updating the zoning code, increasing youth and senior recreation activities, and implementing a 5-year Capital Improvement Program and Storm Water Master Plan.
During the budget workshop on June 3, 2024, it was discussed that there are sufficient reserves to manage a one-time budget adjustment to the Fire contract if needed next fiscal year. There is also a potential for a sales tax increase, and a recommendation to issue a 270-day notice to terminate the fire services contracts if no new agreement is negotiated.
The recommended positions are the Economic Development Specialist to the budget and increasing the Recreation Assistant position from part-time to full-time. The budget includes a non-profit grant program and a Storm Water Master plan to address localized flooding.
The revised Fund Balance for FY 2024/25 shows a surplus of $53,591 in the General Fund and surpluses in other funds such as Sewer Enterprise, Water Enterprise, and Gas Tax.
Discussion
During the Budget workshop on June 3, 2024, the following points were discussed:
The General Fund balance was reported to be $143,591, which includes a recommended $100,000 Disaster Reserve as one of the top priorities in the Strategic Plan.
The vulnerability of public safety expenses, particularly the Fire contract, was discussed. It was reported that there are sufficient reserves to manage a one-time budget adjustment to the Fire contract if needed in the next fiscal year.
The potential for a sales tax increase was introduced, with a range of between .25 cents and .50 cents, which would increase the total sales tax from 9% to between 9.25% and 9.5%.
Page | 7 City Council Meeting Minutes (June 18, 2024)
At the Hollister City Council meeting, it was directed to issue a 270-day notice to terminate the fire services contracts if no new agreement was negotiated by March 2025. San Juan Bautista is currently paying $260,000 per year gross for nine firefighters with 24/7 coverage. There is a discrepancy in costs, with the city paying about $130 per capita, while the county pays $205 per capita for fire services. The potential increase in costs if the city were to pay based on the percentage of calls from their ZIP code could lead to a rise from $260,000 to $476,000 annually.
Negotiating an interim agreement with Hollister was mentioned to address financial implications and ensure the general fund can accommodate any cost increases. The formation of a district and setting aside funds in reserve for potential cost adjustments related to the fire contract was recommended.
Staff recommended setting aside $40,000 from the General Fund balance to study potential strategies to increase revenue, including a sales tax initiative for the November 2025 ballot.
Citygate recommended adding an Economic Development Specialist to the budget, focusing on business retention and working with existing businesses to help them with their economic challenges.
It was recommended to increase the Recreation Assistant position from part-time to full-time to further the Council's goal of growing a strong Recreation program. This would help establish a non-profit grant program with a $50,000 annual budget and a City Council ad-hoc committee assigned to evaluate grant proposals from local non-profits.
The new General Fund balance would be decreased by $90,000 if the two initiatives (sales tax revenue study and recreation's non-profit grant program) were approved, resulting in a new adjusted balance of $53,591.
The Capital Improvement Plan discussed adding a Storm Water Master plan to address localized flooding at the City's northern and southern boundaries.
Recommended Personnel Changes
Savings from a Re-org of Community Development from Assistant City Manager to Associate Planner; No net cost increase in costs; Recreation–from 30-hour per week to full-time position; Economic Vitality Specialist PT position based on the Strategic Plan’s (Citygate) 25-Top Priorities.
Councilmember Morris-Lopez, Sabathia and Mayor Freels expressed concerned with funding the Part time Economic Vitality Specialist.
No public comments were received.
The City Council discussed the budget and were in favor of adopting budget with the understanding, that the Part-Time Economic Vitaly Specialist position would not be funded.
Page | 8 City Council Meeting Minutes (June 18, 2024)
Councilmember Sabathia motioned to approve the proposed budget with the removal of the Economic Vitality position.
MOTION:
Upon motion by Councilmember Sabathia, second by Councilmember Morris-Lopez, the Resolution Adopting the City Operations and Capital Improvement Budgets for Fiscal Year 2024/25 as amended, was approved.
AYES: Councilmembers: Freeman, Morris-Lopez, Sabathia, and Mayor Freels; NOES: None; ABSENT: Mayor Pro Tem Jordan; ABSTAIN: None
B. Memorandum of Understanding (“MOU”) Between the City and San Benito County Regarding Development in the Planning Area Outside City Limits.
City Manager Don Reynolds provided the report. The MOU establishes a sphere of influence and urban growth boundary, with maps provided for reference. The importance of the MOU as a temporary solution before potentially pursuing an ordinance or public vote was highlighted. The MOU was seen as a starting point and an opportunity for the city to have input in future developments. Faith in the county's willingness to work with the city and the importance of being informed about developments impacting the city were emphasized. The historical lack of representation for the city in county matters was acknowledged, viewing the MOU as a step towards addressing this issue.
No public comment was received.
MOTION:
Upon motion by Councilmember Sabathia, second by Councilmember _____, the Resolution approving an MOU between the City and the County regarding coordinated development review for proposed projects within the City’s proposed Planning Area, which is that area outside of the Sphere of Influence and City Political Boundary, was approved.
AYES: Councilmembers: Freeman, Morris-Lopez, Sabathia, and Mayor Freels; NOES: None; ABSENT: Mayor Pro Tem Jordan; ABSTAIN: None
9. FUTURE AGENDA ITEMS
Councilmember Morris-Lopes asked about backup personnel designation in the absence of key individuals, and inquired about the total count and categorization of current business licenses in the city. Councilmember Morris-Lopez further added that she would like to review the attendance policy for the Planning Commission and would like to address the Commission vacancy and stated that the City Council is responsible reviewing attendances.
Councilmember Sabathia requested a draft vacancy tax be brought forward to the Council for review.
Page | 9 City Council Meeting Minutes (June 18, 2024)
10. ADJOURNMENT
Motion to adjourn the meeting by Mayor Freels, second by Councilmember Freeman. All in favor.
There being no other business, Mayor Freels adjourned the meeting at 8:27 p.m.
Mayor Freels adjourned the meeting in honor of Richard Velasco.
APPROVED:
_____________________
Scott Freels, Mayor
ATTEST:
____________________________
Elizabeth Soto, Acting City Clerk
Item: 8.A
City Council Meeting
August 20, 2024
Page | 1
CITY OF SAN JUAN BAUTISTA
CITY COUNCIL STAFF REPORT
DATE: AUGUST 20, 2024
DEPARTMENT: CITY MANAGER
FROM: DON REYNOLDS
BY: DON REYNOLDS
TITLE: END THE URBAN GROWTH BOUNDARY/SPHERE OF
INFLUENCE COMMITTEE
RECOMMENDED MOTION:
Approve a Resolution ending the Urban Growth Boundary (“UGB”)/Sphere of Influence (“SOI”) Committee.
RECOMMENDATION:
Consider the work of the UGB/SOI Committee as complete, and end it by adopting the attached Resolution. Direct staff to negotiate a Planning Area policy agreement with County staff.
EXECUTIVE SUMMARY:
After considering a draft MOU between the City and County June 18, and July 16, 2024, without taking action, a majority of the City Council after receiving public testimony on this matter, has agreed to that the remaining work to be completed to submit an application to LAFCO to amend the SOI, can proceed without the UGB/SOI Committee, and has agreed to end the Committee by adopting the attached Resolution.
BACKGROUND:
The Recitals in the attached Resolution provide an accounting for the work of the UGB/SOI Committee since August 2020. This work culminated November 14, 2023, with the adoption of Resolution 2023-71 announcing the City’s intent to initiate a targeted General Plan Amendment, and accepting the UGB/SOI and Planning Area maps. The Committee then met in December, January, and February to discuss the third task in the Resolution:
“3. Direct the UGB Ad Hoc Committee to work with San Benito County to establish a Planning Area and related Memorandum of Agreement/Understanding.”