BUDGET MEETING
BUDGET AND PERSONNEL COMMITTEE
WEDNESDAY, FEBRUARY 23, 2022
2:00 PM
1 1. CALL TO ORDER
2. ROLL CALL
3. COMMUNICATIONS
Members of the Public may address the Budget/Personnel Committee on matters not appearing on the Budget/Personnel Committee Agenda at this time for up to three minutes. In order that the Budget/Personnel Committee Secretary may later identity the speaker in the minutes of the meeting, it is helpful if the speakers state their names.
Public comments regarding items on the scheduled agenda will be heard at the time the item is
AGENDA
BUDGET AND PERSONNEL COMMITTEE
Budget Meeting - Wednesday, February 23, 2022
2:00 PM
THIS MEETING WILL BE HELD VIRTUALLY AND IS COMPLIANT WITH ASSEMBLY BILL (“AB”) 361, SIGNED INTO LAW ON SEPTEMBER 16, 2021, WHICH AMENDS GOVERNMENT CODE SECTION 54953 TO PROVIDE AUTHORITY FOR PUBLIC
AGENCIES TO HOLD VIRTUAL MEETINGS DURING A PROCLAIMED STATE OF EMERGENCY AND REMAIN IN COMPLIANCE WITH THE BROWN ACT (GOV. CODE §§ 54950 ET SEQ.).
TO PARTICIPATE IN THE ZOOM BUDGET/PERSONNEL COMMITTEE MEETING LIVE:
https://us02web.zoom.us/j/4614728829
Meeting ID: 461 472 8829
To participate telephonically by calling the number below:
(669) 900-6833
Meeting ID: 461 472 8829#
If prompted to enter a participant ID, press #
How to submit written Public Comments:
If any member of the public would like to provide written comments at the meeting, please do as set forth below. Written: All comments received before 8:00 am the day of the meeting will be posted on the City’s website as “Correspondence” under the relevant agenda item and provided to the City Council members at the meeting. Please email your comments to: [email protected].
Read Aloud During the Meeting: Email your comments to [email protected] when the Mayor opens the public comment period for the relevant agenda item; please indicate the agenda item and title in your email subject line. If you want your comment read aloud, prominently write “Read Aloud at Meeting” at the top of the email and your comments will be read into the record (not to exceed three minutes at staff’s cadence).
DURING EACH MEETING, members of the public may participate by calling and speaking live during the designated time(s), subject to time limits that may be imposed pursuant to the Brown Act at the number provided above.
2 being considered by the Budget/Personnel Committee.
4. ORDER OF BUSINESS
4a. Approval of December 2, 2022 Budget/Personnel Committee Meeting Minutes
12.2.21 Budget.Personnel Committee Minutes.pdf
4b. Consideration and Discussion of Amendment #1 to the Fiscal Year 2021-2022 Budget
Staff Memo Budget Amendment #1 for Fiscal Year 2021-2022.pdf
5. ADJOURNMENT
The current agenda is available in PDF format on our website at:
www.sandcity.org
If you have a request for a disability-related modification or accommodation, including auxiliary aids or services, which will allow you to participate in a Sand City public meeting, please call the City Clerk at (831) 394-3054 extension 220, or give your written request to the City Clerk at 1 Pendergrass Way, Sand City, CA 93955 at least 48 hours prior to the scheduled meeting to allow the City Clerk time to arrange for the requested modification or accommodation.
3 AGENDA ITEM
4a.
Approval of December 2, 2022
Budget/Personnel Committee Meeting
Minutes
4 _____________________________________________________________________________________________ Budget/Personnel Committee Meeting Minutes
December 2, 2021
MINUTES
BUDGET AND PERSONNEL COMMITTEE
Budget Meeting - Thursday, December 2, 2021
10:00 AM
As allowed per Assembly Bill (AB361), this meeting was conducted in person and by teleconference
AGENDA ITEM 1, CALL TO ORDER
Chair Carbone called the meeting to order at 10:02 a.m.
AGENDA ITEM 2, ROLL CALL
Members Present: Committee Member Mary Ann Carbone
Committee Member Kim Cruz
Staff Present: Acting City Manager Vibeke Norgaard
City Clerk/Committee Secretary Connie Horca
Police Chief Brain Ferrante
Finance Specialist Devon Lazzarino
Guest: Mike Nolan, Hayashi & Wayland
Maira Reid, Hayashi & Wayland
Therese Courtney (virtual attendance)
AGENDA ITEM 3, COMMUNICATIONS
10:05 a.m. Chair Carbone opened the floor for public comment and seeing none, closed the floor to public comment.
AGENDA ITEM 4, ORDER OF BUSINESS
4a. Approval of Sand City Budget/Personnel Committee Meeting Minutes, November 9, 2021
Motion to approve the November 9, 2021 Budget/Personnel Committee meeting minutes was made by Committee Member Cruz, seconded by Committee Member Carbone. Roll call vote AYES: Committee Members Carbone, Cruz. NOES: None.
ABSENT: None. ABSTAIN: None. Motion carried.
4b. Review of the Fiscal Year 2020/2021 Draft Audit
Mr. Mike Nolan from Hayashi and Wayland presented the draft audit and financial statements for fiscal year ending June 30, 2021. He noted that the audit went smoothly, that no significant issues or difficulties arising from the audit were discussed and that the audit provided a clean result. The financial statements referred to present fairly, in all material respects,
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December 2, 2021
the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Sand City and the respective changes in financial position for the year then ended in accordance with accounting principles, as of June 30, 2021.
Mr. Nolan addressed Committee Member Cruz's concern regarding the follow-up of any small deficiencies that were noted in the previous years, and confirmed that they have been corrected.
Committee Member Carbone received clarification from Therese Courtney of Hayashi & Wayland regarding the recognition of the Successor Agency payment that was placed into revenues, and also received information regarding the reporting of pension liability as related to GASB 97 that would occur in 2022.
Maira Reid from Hayashi & Wayland, reported on the summary of net position with an increase of $1.2 million form the precious fiscal year, the City's net investment assets, and noncurrent receivables. Long-term liabilities increased due to an increase in the pension liability of $392,000 and compensated absences of $149,000 for the police department. A decrease of $576,00 in expenditures occurred due to COVID-19 and budgeted revenues increased by $32,420.
There was Committee discussion regarding the TAMC Measure X reporting, IRWMP, funds spent for City Hall remodel, and actions taken. 10:40 a.m. Chair Carbone opened the floor for public comment, and seeing none, closed to public comment.
Ms. Reid concluded that it was a pleasure working with Ms. Lazzarino and staff.
On a motion by Committee Member Cruz, and seconded by Committee Member Carbone, the draft audit was unanimously approved with a final audit to be brought for Council consideration at the December 21, 2021 meeting. 4c. Consideration of Police Fleet Maintenance
Police Chief Ferrante reported on the current status of the department’s vehicles, the CIP program that included a five-year plan for the replacement of the vehicles.
The current fiscal year has a budget for one vehicle and is requesting that a second vehicle be purchased to remain in line with the CIP program. The purchase of the second vehicle if approved by the budget committee can be included in the amended budget for the fiscal year.
There was discussion regarding the Crown Victoria, resale of inventory, and replacement of the unmarked vehicle.
10:47 a.m. Chair Carbone opened the floor for public comment, and seeing none, closed to public comment.
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December 2, 2021
Motion to approve the purchase of a second vehicle was made by Committee Member Cruz, seconded by Committee Member Carbone. Roll call vote AYES:
Committee Members Carbone, Cruz. NOES: None. ABSENT: None. ABSTAIN:
None. Motion carried.
4d. Consideration of Bicycle Patrol Funding
Chief Ferrante presented the staff report and summarized the costs for a bicycle patrol program. The cost would include an e-bike, uniform, training and per diem for 1 officer at approximately $8,000.
There was Committee discussion regarding the value to Sand City by establishing a bicycle patrol program, staffing, purchase of a bike rack for the police vehicle, liability, and delaying this program to a future date.
10:58 a.m. Chair Carbone opened the floor for public comment, and seeing none, closed to public comment.
There was no action taken by the Budget/Personnel Committee at this time and the item will be brought back for Committee consideration at a future meeting.
Chair Carbone announced that the closed session item will be continued to December 3, 2021 at 10:30 am. due to time constraints.
AGENDA ITEM 5, CLOSED SESSION
5a. Budget/Personnel Committee to adjourn to Closed Session regarding:
1) Closed session pursuant to Cal. Gov Code § 54957.6 (Conference with Labor Negotiator):
Agency designated representatives: City Attorney, Vibeke Norgaard Unrepresented employee: City Clerk
2) Closed session pursuant to Cal. Gov Code § 54957.6 (Conference with Labor Negotiator):
Agency designated representatives: City Attorney Vibeke Norgaard Unrepresented employee: Public Works Foreman
3) Closed session pursuant to Cal. Gov Code § 54957.6 (Conference with Labor Negotiator):
Agency designated representatives: City Attorney Vibeke Norgaard Unrepresented employee: Finance Specialist
4) Closed Session pursuant to Cal. Gov. Code §
54957.6 Position: City Manager
AGENDA ITEM 6, ADJOURNMENT
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December 2, 2021
There was consensus of the Budget/Personnel Committee to adjourn the meeting at 10:59 a.m. to the continued Budget/Personnel Committee meeting on Friday, December 3, 2021 at 10:30 a.m.
_______________________________
Connie Horca, City Clerk
8 AGENDA ITEM
4b.
Consideration and Discussion of
Amendment #1 to the Fiscal Year 2021-
2022 Budget
9 MEMO
To: Budget and Personnel Committee Members
From: Devon Lazzarino, Finance/HR Specialist
Date: February 16, 2022
Re: Budget Amendment #1 Fiscal Year 2021-2022
Discussion:
The Proposed Budget Amendment #1 for fiscal year 2021-2022 is based on a larger increase of projected sales tax revenues than expected. The City continues to recover nicely from pandemic related revenue losses. The enclosed Sales Tax Update from HdL shows that Sand City’s third quarter 2021 sales tax increased by 8.3% compared to third quarter 2020, and Measure J increased by 5.4% for the same time period.
Fiscal Impact:
The increase in revenues for Budget Amendment #1 is $839,372, which reflects the HdL analysis for increased sales and transaction taxes, an increase in City business licenses (new businesses), the Cal-Am reimbursement of the Desal new wells, and the DBO Edgewater habitat endowment.
Because of the increase in revenues, staff has added capital outlay/projects for fiscal year 2021-2022 that have been on the Council approved CIP list. These include 2 new vehicles for the Police Department (up from one in the adopted budget), a storage container unit for Police records, improvements to the Police Department lobby area, rehabilitation for the street sweeper purchased in 2020, a new dump truck for Public Works (ordered, but not yet received), completing the City Hall improvements (windows and electrical), completing the Art Park improvements, and the Pendergrass Way project. It is our goal to have these items completed by June 30, 2022.
The increase in expenses for Budget Amendment #1 is $838,958, which reflects increases in the City’s liability premium (per MBASIA), employee cash outs, one new police hire to replace a retired officer, the reinstatement of City events (Xmas and BBQ), City projects (West Bay Observation Platform, Calabrese Park, Pendergrass Way, and the Art Park), an extra police vehicle, and street sweeper rehabilitation. 10 2
Recommendation:
Staff recommends that the Budget and Personnel Committee approve budget amendment #1, and authorize staff to forward to the City Council for consideration. 11 12
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