A G E N D A
SPECIAL MEETING OF THE CITY COUNCIL
STRATEGIC PLANNING WORKSHOP
Tuesday, January 30, 2024 ~ 5:30 PM
Fire Station #48 – Community Room
3131 North Gate road
Seal Beach, California
SCHELLY SUSTARSIC
MAYOR
Fourth District
LISA LANDAU
MAYOR PRO TEM
Third District
JOE KALMICK
COUNCIL MEMBER
First District
THOMAS MOORE
COUNCIL MEMBER
Second District
NATHAN STEELE
COUNCIL MEMBER
Fifth District
This Agenda contains a brief general description of each item to be considered. No action or discussion shall be taken on any item not appearing on the agenda, except as otherwise provided by law. Supporting documents, including agenda staff reports, and any public writings distributed by the City to at least a majority of the Council Members regarding any item on this agenda are available for review on the City’s website at www.sealbeachca.gov.
City Council meetings are broadcast live on Seal Beach TV3 and on the City's website www.sealbeachca.gov). Check the SBTV3 schedule for rebroadcast of — meetings are available on- demand on the website (starting 2012).meeting In compliance with the Americans with Disabilities Act of 1990, if you require disability - related modification or accommodation to attend or participate in this meeting, including auxiliary aids or services, please call the City Clerk' s office at (562) 431 -2527 at least 48 hours prior to the meeting.
CALL TO ORDER
COUNCIL ROLL CALL
ORAL COMMUNICATIONS
At this time members of the public may address the Council regarding items on the agenda. Pursuant to the Brown Act, the Council cannot discuss or take action on any items not on the agenda unless authorized by law. Matters not on the agenda may, at the Council' s discretion, be referred to the City Manager and placed on a future agenda.
Those members of the public wishing to speak are asked to come forward to the microphone and state their name for the record. All speakers will be limited to a period of five (5) minutes. Speakers must address their comments only to the Mayor and entire City Council, and not to any individual, member of the staff or audience. Any documents for review should be presented to the City Clerk for distribution.
CITY COUNCIL WORKSHOP
ADJOURNMENT
City of Seal Beach
City Council Workshop
Carol Jacobs | Managing Director
Steve Alexander | Special Advisor
January 30, 2024
9:00 a.m. to 3:00 p.m.
Orange County Fire Authority Station 48
Welcome and Call to Order by Mayor Sustarsic
Councilmember
Thomas Moore
District 2
Mayor
Shelley Sustarsic
District 4
Councilmember
Joe Kalmick
District 1
Mayor Pro Tem
Lisa Landau
District 3
Councilmember
Nathan Steele
District 5
2 Public
Comments
3 3
Comments from the City Manager
4 City Manager
Jill Ingram
5 Today’s
Objectives
Council Governance/Leadership
Accomplishments/Challenges
Seek consensus on FY 2024-25 Strategic
Priorities
Strengthen teamwork
6 Agenda
Icebreaker
Introduction to the day
Governance/leadership
Key accomplishments and challenges
Context for priority setting
Establish top priorities for FY 2024-25
Wrap-up and closing comments
7 Listen to
understand each
other’s point of
view
Seek consensus Assume good
intent
Speak up if we
need course
correction
Stay focused
Suggested Ground Rules
Bike Rack
Time
Management Tool
Items to discuss at a
later time
8 9
Icebreaker Exercise
Councilmembers’ Service to Seal Beach
What inspired
you to serve on
the City Council?
What about your
service on the
City Council do
you find most
satisfying?
What legacy
would you like to
leave the
community?
Share one fun
fact that others
may not know
about you.
Good Governance Is About…
• Effective leadership by the Mayor and Council
• Responsive management and leadership by the
City Manager
• Meaningful communication that is honest, direct,
respectful, proactive
• Understanding roles and fulfilling expectations
• Fostering mutual respect and building trust
• Ethics
Building relationships through:
10 What Makes a Council Work Well?
11 Institute for Local Government
Effective Councils
Unity of Purpose Clear Roles and
Responsibilities
Positive
Governance
Culture
Norms,
Protocols &
Policies
1. Treat everyone courteously;
2. Listen to others respectfully;
3. Exercise self-control;
4. Give open-minded consideration to all viewpoints;
5. Focus on the issues and avoid personalizing debate; and,
6. Embrace respectful disagreement and dissent as democratic rights, inherent components of an inclusive public process, and tools for forging sound decisions.
The City’s Civility Principles
12 Seal Beach Council Norms
1) Maintain a citywide perspective, while
being mindful of our districts.
2) Move from I to we, and from campaigning
to governing.
3) Work together as a body, modeling
teamwork and civility for our community.
4) Assume good intent.
5) Utilize long range plans to provide big
picture context that is realistic and
achievable.
6) Stay focused on the topic at
hand. Ensure each member of Council
has an opportunity to speak.
7) Share information and avoid surprises.
8) Keep confidential things confidential.
9) Respect the Council/Manager form of
government and the roles of each party.
10) Communicate concerns about staff to
the City Manager; do not criticize staff
in public..
Good City Council Leadership Is…
• Creating a shared vision by the City Council and
staff
• Empowering employees to carry out policy
• Inspiring through modeling behavior
• Identifying opportunities to lead change in an
inclusive and collaborative way
• Considering the needs of those who do not engage
in city government
Leading effective organizations requires:
14 15
Leadership Comes at a Cost
Each leader has to make a conscious decision on whether they are willing to pay that cost or not.
“Three debts that will have to be paid are…
1. You will have to make hard decisions that negatively affect people you care about
2. You will be disliked despite your best attempt to do the best for the most
3. You will be misunderstood and won’t always have the opportunity to defend yourself.”
From Kirby Smart – Football Coach, University of Georgia 16 Leadership What Would You Do?
A divisive community issue has arisen. The City has projected a $1,000,000 need for ongoing revenue to keep the level of services the community expects going. After much community debate the Council has two choices:
1. Cut a million dollars out of the budget which equates to the Parks and Recreation Department; or
2. Allow a car dealership into the City on the north side of PCH.
The Council Chamber is filled with angry residents who do not want the car dealership in their neighborhood. No one speaks in favor of the car dealership or identifies the loss of the Parks and Recreation Department as something they care about.
17 Discussion
What are your
options?
What tools do
you have to put
the community first?
18 Stretch Break
Seal Beach
Mythology
From change is bad to Seal Beach
has unqualified staff, myths
abound. Some definitions of smalltown character have contributed to current challenges, and a feeling
that infrastructure is not
glamorous, while a doomed
budget seems to lurk and no one is
doing anything about it!
Some counterpoints …
20 Popular Myths City Budget
Employees Consultants
21 22
Change Is Bad
Change happens, every day.
Shape it meaningfully and inclusively
where we can, but don’t ignore it.
• The Shops at Rossmoor and Old Ranch
Town Center power the City’s budget.
• Expansion to pickleball has put the
SBTPC in the black.
• STRs and ADUs have not eroded
neighborhoods.
• The Blaney House moved.
• We welcome community events.
MYTHBUSTER
23 Small-Town Character Makes Us Thrive
Hmmm…That’s a good
discussion
(see “change is bad”)
So, what actually makes a
place special?
Some Suggestions:
• Low crime rates
• Short response times
• Junior guards
• Trimmed trees
• Locally owned shops
• Senior transportation
• Christmas Parade
• Courteous employees
MYTHBUSTER
24 Infrastructure Is Not Glamorous and Investment Can Wait Water, sewer, and storm
drain systems are critical
to human health and
safety.
• $13.5 million Lifeguard Headquarters
• $60 million to get other facilities
rehabilitated/useful life
• $150 million needed for storm drain
improvements
(To name a few)
Quality of Life Is Expensive and
Requires Discipline
MYTHBUSTER
25 The City Is Not Transparent
• Website
• Agendas and staff reports for every
meeting
• Broadcast, streamed, and recorded
City Council and Planning Commission
meetings
• 40 (average) annual press releases
• Bi-monthly City Manager Newsletter
• Always seeking to improve!
4 Facebook
Pages
7 Instagram
Accounts
1 X Account
MYTHBUSTER
26 Measure BB Solved It
Issues out of our control
deeply influence the budget,
despite all staff efforts to
optimize and make do.
• Increased labor costs
• Increased purchasing regulations
• Inflation, utility costs, gas pricing
• Increased regulatory compliance
Examples:
• OCFA contract costs up
$1.4 million (24%) in five years
• Landscaping company contract
nearly doubled in two years
MYTHBUSTER
27 The City Is Broke
Despite all the bad news, revenues have
increased
Seal Beach continues to attract businesses
and shoppers
Each year, staff presents, and Council adopts
a balanced budget
MYTHBUSTER
28 Overpaid/Too Many Employees
Salary and Benefit Comparison
MYTHBUSTER
*does not include fire
29 Staff Is Unqualified
Many Staff
Members
Have
College and advanced degrees
Decades of experience
Certifications
Positions in professional organizations
MYTHBUSTER
Staffing may
be limited,
but is not
incompetent
30 We Hire Too Many Consultants
Consultants are
important tools for
small cities in
particular
Consultants provide:
• Economical manpower
• Short-term service
• Expertise we cannot afford to
staff
MYTHBUSTER
31 Consultants Mean Staff Is Not Involved
Consultants are great, but they are still a tool.
• Consultant must be placed on the right path and managed • All work product must be vetted and edited
• Ultimately, having a consultant is still a collaborative effort, typically with more than one staff member involved
MYTHBUSTER
32 Recent
Accomplishments
(from Council interviews)
• Project completion
▪ New phone system
▪ Settled parklets
▪ Revamped pickleball and tennis courts
• Community engagement and relations
▪ Return to normalcy post-COVID; return of events, reopening of restaurants ▪ More transparency and public input
▪ Residents can be heard before approving consent calendar ▪ Opening of new businesses
• Financial management
▪ Allocation and use of second half of ARPA funding for valuable projects (e.g., West-End Pump Stations)
▪ Awareness and addressing of financial challenges, including rising overhead costs and the need to balance the budget
• Collaboration
▪ Recognition of cohesive Councilmembers who can agree to disagree ▪ Positive relationship with Chamber of Commerce
▪ Good working relationship with City Manager
• Infrastructure improvements
▪ Implementation of West-End Pump Station Storm Management Upgrades 33 Upcoming
Challenges
(from Council interviews)
Challenging
financial
forecast
Need for new
revenue
sources
Unfunded
mandates
Adapting to
new state laws
Restaurant on
the pier
Flooding
issues
Jail facility and
animal control
Financial
Outlook
34 General Fund Revenues/Expenditures
*Includes CIPs and one-time revenues of 2020 $2.8M Fire Insurance, 2021 $3M Pier Insurance, 2022 $5.7M ARPA, 2023 $1.4M Settlement $0.0
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024B Millions
Revenues Expenditures
General Fund Five-Year Forecast
36 • The City has a balanced budget policy and must adopt a balanced budget by June 30 every fiscal year
• Reasonable set of economic and operational assumptions • Forecast is a snapshot in time, an approximate view of what could occur if no measures are taken
• Independent, each year’s projections are considered separately • The forecast serves as a planning tool, indicating potential challenges and opportunities before they arise
• Allows for planned programming
FORECAST SUMMARY 2023B 2024B 2025F 2026F 2027F 2028F
TOTAL REVENUES AND SOURCES 40,346,400 42,154,700 42,499,462 43,362,652 44,365,457 45,185,918 TOTAL EXPENDITURES AND USES 40,319,900 42,134,517 44,149,288 46,750,586 48,921,581 50,728,645 NET OVER/(UNDER) 26,500 20,183 (1,649,825) (3,387,934) (4,556,124) (5,542,727)
REVENUE EXPENDITURES
2023-24 2027-28 2023-24 2027-28
2.3% Average
Five-Year Projection
+4.7% Average
Five-Year Projection
May June March to
April
January
to
February
December
to
February
Finance Develops
Salary & Benefit and
Revenue Estimates;
Public Works Begins
Assessment for
Capital Projects
Budget Kickoff;
Departments Review
Budget Goals and
Priorities, Prepare
Operating and
Capital Budgets
Budget Balancing
and Development
of the Proposed
Budget
Budget
Workshops with the
City Council and
Community
Budget Adoption
Upcoming Budget Process
37 38
Priority Setting
We can’t do
everything,
But we can do
some things
very well
Successful City Governments
• Respect the ongoing work of City departments as the
day-to-day operations must be well managed – and that
takes time
• Have a collaborative, trusting relationship between the City Council and staff
• Set a few focused priorities, with a staff work plan to achieve them
39 Balancing Capacity and Council Goals
40 Don’t fill up the bucket
with so many small
rocks that there isn’t
room for the big ones
Put the big
rocks in first
Then add the small
ones where there is
room
“Big Rocks”
41 How
Management’s
Time Is Spent
85%
5%
5%
5%
Day-to-day management of municipal services
Unforseen challenges
New initiatives
Strategic improvements and training
Solutions for
fiscal
constraints
Promote
forward
thinking
The one big
thing
Council Comments Provided to Baker Tilly
Regarding Their Thoughts on Priorities for FY2024-25
42 43
Lunch Break
Strategic Priority Setting for FY 2024
• Council and staff identified projects
• Review projects as provided in handout
• Council questions on projects
44 Process Overview
Current Capital Project Set Asides
Pier Restaurant $1,395,638
Community Pool $4,395,824
Total $5,791,462
City Council Priorities
46 Category Item Benefits Challenges (Revenue)/Costs Finance Sales tax measure New Revenue Opportunities
Public vote/perception/
pushback ($3,000,000)
Oil tax measure New Revenue Opportunities Public vote/political action ($100,000) Subtotal Finance Category (3,100,000)
Public Safety
Lifeguard Headquarters Critical public safety facility Cost $13,500,000 License Plate Reader System Upgrade
Necessary for effective public safety, parking
enforcement Cost $325,000
Subtotal Public Safety Category $13,825,000
Environment
CDS storm drain debris capture in Old
Town/Bridgeport
State Trash Amendment regulatory compliance,
and storm water conveyance operational
enhancement Cost $710,000
Subtotal Environment Category $710,000
City Council Priorities
47 Category Item Benefits Challenges (Revenue)/Costs Parks and Recreation Pool-make a decision Community amenity, water safety Cost/location $18,500,000 Gas line and heater at McGaugh Pool Extend life of existing pool Cost $200,000 Update park amenities and facilities
Community amenity; buildings necessary for
classes, activities, rentals Cost - Up to $10,000,000 $10,000,000 Subtotal Parks and Recreation Category $28,700,000
Maintenance
Repave 8th/10th Parking Lots with ADA
upgrades
Rehabilitate deteriorating parking lots, and
required ADA barrier removals Cost $800,000
Bridgeport alleys
Necessary alley pavement rehabilitation where
restricted roadway funds cannot be used Cost $1,500,000 Subtotal Maintenance Category $2,300,000
Community
Amenity
Restaurant on the pier
Addition to beach amenity, potential revenue
source Cost and management $3,025,000
Update Main Street Specific Plan Modernize an old plan, community engagement Politically challenging $500,000 Subtotal Quality of Life Category $3,525,000
City Council Priorities
48 Total Cost of all Items: $49,420,000/Revenue Enhancements: $3,675,000 Category Item Benefits Challenges (Revenue/Costs) High Performing Organization IT Master Plan
Critical to maintain service delivery;
update systems, maintain equipment, etc.
Includes mobile dispatch terminals, body
worn cameras, GIS, softwares Cost
$ 75,000
Review and assess staffing resources
(study) Identify critical needs
Cost - Assessment $60,000 and Class & Comp
$50,000 $110,000
Talent management/sucession
planning (study) Employee retention and skill development Cost $50,000 Additional staffing to meet the needs
of the City Council/community Four employees (budget discussion) Cost per year $785,000 Subtotal High Performing Organization Category $1,020,000 Dot Voting
Priority Ranking
49 What priority items do you want to
accomplish in FY 2024-25?
• Six colored dots per
Councilmember
• One dot per priority item
• Priority ranking will be
determined by the items receiving
the most dots
• Council will direct which of the
priorities staff will focus on for
2024-25
Next
Suggestions for Steps
Staying on Track
with Priorities
50 Regular
progress
reporting
Hold off on new
Council initiatives until
next goal setting cycle
or mid-cycle in the twoyear budget
Next
Steps Best Practice
Criteria for Adding
Initiative and
Projects Mid-Cycle
Emergency (natural disaster, pandemic, civil unrest)
New outside funding opportunity that is time-sensitive
New multi-agency opportunity that cannot be
rescheduled
Community safety issue that must be addressed in
near term
Changes in law or mandates
Otherwise – wait until next
priority-setting process
51 Next
Steps
Additional Items Council Wanted to Discuss
• Define who we are and what our central purpose is
• Communication is still key
• Discuss municipal finance crisis
• Loss of cordiality between Council, respect opinions differing from own
• Can’t just look to supporters
52 Next
Steps Wrap Up and
Next Steps
53 Baker Tilly will
prepare a
summary
workshop report
Closing comments
from
Councilmembers
and the City
Manager
Workshop
evaluation form
Thank you!
Carol Jacobs| [email protected]
Steve Alexander| [email protected]