CITY COUNCIL REGULAR MEETING - FEBRUARY 06, 2023 PAGE 1 OF 3
CITY COUNCIL REGULAR MEETING
Monday, February 06, 2023 at 5:00 PM
94 N. Washington Street, Sonora, CA 95370
(209) 532-4541
AGENDA
NOTICE IS HEREBY GIVEN that the Sonora City Council will have their regular meeting on Monday, February 6, 2023, at 5:00 PM in the City of Sonora Council Chambers located at 94 N. Washington Street Sonora, CA 95370.
NOTICE: THIS MEETING WILL BE HELD IN ACCORDANCE WITH GOVERNMENT CODE SECTION 52953(E) AND THE CITY OF SONORA CITY COUNCIL RESOLUTION NO. 01-17-2023-A.
THIS MEETING IS PHYSICALLY OPEN TO THE PUBLIC AND MEMBERS OF THE PUBLIC MAY PARTICIPATE IN THE MEETING VIA VIDEO CONFERENCING AT:
Zoom Meeting Link:
https://us06web.zoom.us/j/81193397821?pwd=UGdrRTcyaFFac3o0b2JQK2FmMTRyUT09 Dial: (669) 444-9171
Meeting ID: 811 9339 7821
Passcode: 906625
MEMBERS OF THE PUBLIC WILL BE GIVEN THE OPPORTUNITY TO PROVIDE COMMENT.
THIS MEETING WILL BE LIVE STREAMED ON THE CITY'S WEBSITE AT www.sonoraca.com.
Written comments can be submitted to be included as part of the administrative record; they will not be read during the meeting. All comments must be received by 3:00 pm on the day of the noticed meeting and can be submitted to the City Clerk at 94 N. Washington Street Sonora, CA 95370 or via email to [email protected].
CLOSED SESSION - 4:00 PM
CALL TO ORDER
ROLL CALL
PUBLIC COMMENTS
ADJOURN INTO CLOSED SESSION
1 CITY COUNCIL REGULAR MEETING - FEBRUARY 06, 2023 PAGE 2 OF 3
1. Threat to Public Services or Facilities (Government Code §54957); Consultation with: Turu VanderWiel, Police Chief, Melissa Eads, City Administrator.
RECONVENE INTO OPEN SESSION
OPEN SESSION - 5:00 PM
REPORT OUT OF CLOSED SESSION
PLEDGE OF ALLEGIANCE
ROLL CALL
CITY CLERK’S REPORT ON AGENDA POSTING
APPROVAL OF THE AGENDA
PRESENTATIONS
2. Receive an update from Tuolumne County District 1 Supervisor David Goldemberg.
PUBLIC COMMENT (NON-AGENDA ITEMS)
The public may address the Council on any item of public interest not otherwise on the agenda that is within the jurisdiction of the City. No action may be taken. Matters to be addressed may be referred to City Staff or placed on a subsequent meeting Agenda. Speakers are limited to a three (3) minute presentation. If participating via Zoom, please raise your hand using the Raise Your Hand feature or dial *9 (*6 to unmute).
CONSENT CALENDAR
Items on the Consent Calendar are considered routine and will be voted on in one motion unless a Council member or member of the public has a question or wishes to discuss an item. In that case, the item will be removed from the Consent Calendar and considered separately.
3. Consider approval of disbursements in the amount of $163,327.37 for payroll, inclusive of employee salaries, employer and employee taxes, retirement contributions, miscellaneous voluntary employee deductions, holiday pay, and other adjustments, including retro-pay.; Tracy Skelly, Administrative Services Officer.
4. Consider approval of Resolution 02-06-2023-A ending the proclamation of a Local State of Emergency in the City of Sonora due to the Washington Fire; Melissa Eads, City Administrator.
NEW BUSINESS
5. Consider approval of a Contract Award to Citygate Associates LLC in the amount of $73,317 for the completion of the Organization Review and Strategic Financial Plan.
6. Consider acceptance of the Fiscal Year 22/23 Mid-Year Budget Update with recommended changes and consider approval of Budget Adjustments as Presented; Requires a 4/5th vote; Christopher Gorsky, Administrative Services Director.
2 CITY COUNCIL REGULAR MEETING - FEBRUARY 06, 2023 PAGE 3 OF 3
7. Consider approval of Resolution 02-06-2023-B to submit an application to the Executive Officer of the Tuolumne County Local Area Formation Commission for exemption under Government Code Section 56134 for out-of-area fire contract services; Aimee New, Fire Chief.
COUNCIL MEMBER/DEPARTMENT HEAD REPORTS
ADJOURNMENT
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in this meeting, please contact the City Administrator at City Hall (209) 532-4541, [email protected]. Notification 48 hours prior to the meeting will enable the City to make reasonable arrangements to ensure accessibility to this meeting (28 CFR 35.102-35.104 ADA Title II).
Materials related to an item on this Agenda submitted to the City Council after distribution of the agenda packet are available for public inspection in the City Administrator’s Office at 94 N. Washington Street, Sonora, CA 95370 during normal business hours (8:00 am - 4:00 pm, Monday through Friday, excluding holidays). The agenda and supporting public documents are also available on our City website www.sonoraca.com listed under the agenda/minutes link on the Government page. 3 CITY COUNCIL AGENDA REPORT
MEETING DATE: February 6, 2023
TO: City Council Members
FROM: Melissa Eads, City Administrator
SUBJECT: Supervisor David Goldemberg County Update
RECOMMENDATION
Receive an update from Tuolumne County District 1 Supervisor David Goldemberg.
DISCUSSION
District 1 Supervisor Goldemberg will present an update on County-wide issues to the City Council the first meeting of each month.
FISCAL IMPACT
No fiscal impact to the General Fund.
4 Item 2.
CITY COUNCIL AGENDA REPORT
MEETING DATE: February 6, 2023
TO: City Council Members
FROM: Tracy Skelly, Administrative Services Officer
SUBJECT: Disbursements in the amount of $163,327.37 for payroll
RECOMMENDATION
Consider approval of disbursements in the amount of $163,327.37 for payroll, inclusive of employee salaries, employer and employee taxes, retirement contributions, miscellaneous voluntary employee deductions, holiday pay, and other adjustments, including retro-pay.
DISCUSSION
This payroll was the 1st payroll of the month, which was an expected amount.
This payroll is the 15th payroll of 26 for FY22-23, we would have expected to expend 57.70% of the budgeted amount. In total, we have expended 53.4% of the Salaries and Wages for the FY 22/23 budget.
FISCAL IMPACT
Disbursements are part of the approved FY22-23 Budget.
5 Item 3.
CITY COUNCIL AGENDA REPORT
MEETING DATE: February 6, 2023
TO: City Council Members
FROM: Melissa Eads, City Administrator
SUBJECT: Ending the Ratification of a Local State of Emergency in the City of Sonora due to the Washington Fire.
RECOMMENDATION
Consider approval of Resolution 02-06-2023-A ending the proclamation of a Local State of Emergency in the City of Sonora due to the Washington Fire.
DISCUSSION
On August 27, 2021, the City Council of the City of Sonora proclaimed a Local State of Emergency in the City of Sonora due to the Washington Wildland Fire. The purpose of proclaiming a local emergency is to provide for the preparation and carrying out of the plans for the protection of persons and property within the City in the event of an emergency; the direction of the emergency organization; and the coordination of the emergency functions of the City with all other public agencies, corporation, organizations, and affected private persons.
The Emergency Services Director has announced that, although mitigation recovery is still ongoing, the Washington Wildland Fire emergency is over and requests that the Council approve Resolution 02-06- 2023-A to end the City’s Local State of Emergency Proclamation effective February 6, 2023.
FISCAL IMPACT
No fiscal impact to the General Fund.
6 Item 4.
RESOLUTION 02-06-2023-A
____ _________________________________________________________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SONORATO END THE
PROCLAMATION OF A LOCAL STATE OF EMERGENCY IN THE CITY OF SONORA DUE TO THE
WASHINGTON FIRE, AS REQUIRED BY THE CALIFORNIA EMERGENCY SERVICES ACT ARTICLE 14 §8630(b).
WHEREAS, in accordance with Chapter 8.30.050 of the Sonora Municipal Code, which empowers the Mayor of the City of Sonora to proclaim the existence or threatened existence of a local emergency when Sonora is affected or likely to be affected by a public calamity and the City Council is not in session; and
WHEREAS, the Mayor of the City of Sonora did hereby find that conditions of extreme peril to the safety of persons and property had arisen within said City, caused by the Washington Wildland Fire which ignited on August 26, 2021; and
WHEREAS, these conditions were beyond the control of the services,personnel, equipment, and facilities of the City of Sonora; and
WHEREAS, on August 30, 2021, the City Council of the City of Sonora resolved that the Emergency Services Director's proclamation found that the aforesaid conditions of extreme peril warranted and necessitated the proclamation of local emergency in the City of Sonora and imminent threat of disaster as the result of existing and anticipated damages from the Washington Wildland Fire.
WHEREAS, the City of Sonora also requested the Governor of the State of California to Proclaim a State of Emergency and authorize financial assistance under the California Disaster Assistance Act or any other state funding and waive regulations that may hinder response and recovery efforts.
Furthermore, our Council requested assistance via the State of California to expedite access to federal resources and any other appropriate federal disaster relief programs.
WHEREAS, The Emergency Services Director has announced that, although mitigation recovery is still ongoing, the Washington Wildland Fire emergency, is over and requests that the Council approve Resolution 02-06-2023-A to end the City’s Local State of Emergency Proclamation effective February 6, 2023.
NOW, THEREFORE, IT IS HEREBY RESOLVED that the City Council does hereby end the Emergency Services Director's proclamation of local emergency in the City of Sonora due to the Washington Wildland Fire.
PASSED AND ADOPTED as a Resolution of the City Council of the City of Sonora, California, at a special meeting of said City Council held on February 6, 2023, by the following votes:
AYES:
NOES:
ABSENT:
7 Item 4.
Signed and dated:
_______________________________
Mark Plummer
Mayor of the City of Sonora
ATTEST: _______________________________
Tracy Skelly
Deputy City Clerk
8 Item 4.
CITY COUNCIL AGENDA REPORT
MEETING DATE: February 6, 2023
TO: City Council Members
FROM: Melissa Eads, City Administrator
SUBJECT: Approval of Contract Award to Citygate Associates, LLC. for an Organizational Review and Strategic Financial Plan
RECOMMENDATION
Staff recommends approval of a Contract Award to Citygate Associates LLC in the amount of $73,317 for the completion of the Organization Review and Strategic Financial Plan.
BACKGROUND
The Path to Measure Y
Over the past few decades, the City has been in “maintenance” mode. With COVID, a structural deficit, and the threat of a looming recession, the City reached a tipping point. Historically, revenue growth remained relatively flat at 2% per year. And in response, to offset higher expenses, the City stalled wage increases, service expansions, and facilities or infrastructure investments. These costs are now outpacing our ability to provide for growth. And instead, service cuts, lack of maintenance or investment, and the un-funding of vacant positions became the norm. The cost of infrastructure replacement versus maintenance continues to mount as many facilities exceed a standard of useful life.
Unfortunately, numbers to quantify this need are not even available as the City does not have a Capital Expenditure Plan identifying scope and cost. This occurred because year-over-year capital investments were so low, or most likely cut, to afford fixed operational costs.
In support of change, the City Council unanimously agreed to place an initiative before the voters on November 8, 2022. Measure Y, a 1% General Sales Tax Measure, was a success. Importantly, the Measure was predicated on the maintenance of existing service levels while planning the City’s future and a next-generation growth strategy. The added revenue, approximately $4 million, comes with the need to balance a budgetary deficit, the tackling of rising pension costs, and the need for analysis of wages to ensure competitive placement within the region. These things sit amongst a backdrop of lagging infrastructure, deferred maintenance, and the social pressures of the homelessness crisis and economic uncertainty. The most important demand challenging the City is the need to perform for the taxpayer who has entrusted this investment. The City must work quickly and efficiently to identify its service expectations, maintenance needs, and vision for growth.
With the 20-year sunset of Measure Y, the time to get it right in FY 2042, is now. And to ensure we do; Staff needs the support of consultant resources to gather the data necessary to drive the decisions that become the investments needed to support the growth of our community. If everything is a priority, then nothing is a priority. Many of the items on this list, won’t wait. Therefore, our goal is to develop a shared mission and vision, to align the data with strategic investments, and to adopt a community 9 Item 5.
supported Five (5) Year Strategic Financial Plan with measurables for accountability and performance monitoring.
The Process to Solicit Qualifications
On October 17, 2022, Staff prepared and issued a Request for Qualifications (RFQ). The RFQ outlined a brief scope of services to be provided seeking the most qualified team to develop the process and design necessary to accomplish the City’s goals. Please reference the RFQ, Attachment No. 1.
The City received a total of five (5) proposals by the stated deadline of November 30, 2022.
Department Heads were assembled as the Review Panel, and upon initial review, three (3) firms were recommended further for Interview: Citygate, Kosmont, and Baker Tilly. The Proposals received were highly competitive. All three (3) firms adequately addressed City goals and objectives and offered qualified teams with decades of experience capable of shaping the scope of services needed. Upon completion of the Interviews, Citygate was supported as the recommended firm.
DISCUSSION
Citygate has provided a diverse team of consultants available to influence the Scope of Services as negotiated. The Team consists of subject matter experts from Law Enforcement, Public Works, Fire, and Supportive Services for the Unhoused. Citygate also has Team Members experienced in successful Tribal partnerships.
What is the Goal of the Strategic Financial Plan?
The Plan will assess the City and its operations, examine both revenues and expenditures, and report to the City where it is now, both operationally and financially, and what options it has for future revenue growth and expenditure controls and/or reductions. The report and accompanying fiscal models will be used in strategic planning with the Council, staff, and community members. The plan will provide a disciplined spending approach over the next five years that increases operational efficiency, prioritizes critical needs, and pursues long-term growth strategies to grow the tax base.
Highlights of the Project Scope
Each scope element is clearly covered within Citygate’s Work Plan, as described in italics. Please see.
Attachment No. 2., the proposed scope of services.
◆Work with a project Steering Committee to determine areas of focus for the planning process.
Covered in Task 2.1 (also see Task 5.3).
◆Facilitate an Organizational Review including a review and analysis of the organizational structure; department operations; identification of short- and long-term challenges; basic service delivery; staffing and capital/facility infrastructure needs; and evaluation of best practices for small rural cities. Covered in Tasks 3.1 and 3.2.
◆Complete a Budget Stabilization Study with a presentation of sustainable budget scenarios including findings from the Organizational Review; a five-year financial forecast related to the General Fund and other applicable major funds; identification and analysis of expenditure reduction strategies; recommendations for alternative service delivery models which may include contracting opportunities, private partnerships, or consolidation; identification and analysis of revenue enhancements including but not limited to consideration of local funding alternatives, planning considerations, annexation strategies, and other financial recommendations necessary to maintain City service delivery and infrastructure needs. Covered in Tasks 3.3, 3.5, and 3.6 (also see Tasks 5.2 and 5.4). 10 Item 5.
◆Facilitate strategic goal-setting workshops with Council Members and the Community necessary to guide strategic investments with limited resources and prepare for the upcoming annual budget.
Covered in Tasks 2.3 and 4.2.
◆Develop an implementation plan including recommendations for financial policies; growth strategies; exploration of local funding alternatives; and methods, timelines, and prioritization of short- and longterm implementation measures. Covered in Tasks 4 and 5. ◆Review and provide recommendations related to annexation strategies and LAFCO processes, city and county finances, tax share negotiations, economic development, and public safety. Tribal relations and homelessness can be addressed in a second project phase at an additional cost. Covered in Tasks
3.3, 3.4, 3.5, and 5.1.
FISCAL IMPACT
The City allocated $100,000 for the completion of the Classification and Compensation Study and the Organizational Review and Strategic Financial Plan with the adoption of the FY 2022/23 Annual Budget In June of 2022. The Council awarded the Classification and Compensation Study contract in the amount of $31,500. The balance approved in the existing budget towards the Citygate award is $68,500.
Citygate has provided a Scope of Services within the Budget, please refer to page 21 of the proposal.
The base scope of services totals $64,967.
Staff requests the Councils’ consideration of additional funding for a Community Survey and Employee Survey, Subtasks 2.4 and 2.5. The total under this option is $73,317. The additional funding needed to complete the project as requested is $4,817.
Staff also seeks Councils’ input on the remaining options for the Review of Homelessness Options and Strategies, and the Review of Tribal Partnerships and Service Delivery, Section B 3.1 and B3.2. These added options would increase costs by $7,686.
11 Item 5.
FEBRUARY2,2023
12 Item 5.
February 2, 2023
Melissa Eads, City Administrator
City of Sonora
94 N. Washington Street
Sonora, CA 95370
RE: PERFORM AN ORGANIZATIONAL REVIEW AND BUDGET STABILIZATION STUDY FOR THE
CITY OF SONORA
Dear Ms. Eads:
Citygate Associates LLC, founded in 1990, is
pleased to present this proposal to perform an
organizational review and budget stabilization
study for the City of Sonora. Citygate is dedicated
to providing organizational and operational
improvement services for public sector agencies.
Citygate has conducted over 600 consulting
reviews for over 400 government agencies
primarily in the West across virtually every
municipal function. Please visit our website at
www.citygateassociates.com for further
information.
We have read and understand all elements of the City’s Request for Qualifications and Question and Answer Addendum. We look forward to working with you and your team to analyze key funding priorities, evaluate current efficiencies while protecting long-term viability and sustainability of the City’s operations, as well as providing you with viable cost-cutting and revenue-increasing alternatives. We will identify growth strategies that can help address long- and short-term financial liabilities. A key product of our work with the City will be a model for future revenue and expenditures forecasting that the City can use in future budget years.
Citygate is willing to enter into an agreement under the terms and conditions prescribed in the City’s Sample Agreement.
“I really, really enjoyed reading
your work product. I appreciate
the fact that it was direct, it was
constructive, and…it wasn’t
finger-pointing, it was just…the
facts. And I think that the money
was well spent.”
J.T. Martin
Council Member, Salt Lake City
13 Item 5.
Melissa Eads
February 2, 2023
BRIEF SUMMARY OF QUALIFICATIONS
Citygate’s qualifications to perform this organizational and budget review are exceptional.
Sonora will not find a team with more expertise in the key functions of local government. We are unique in that our proposal relies on a team of practitioners with nearly 300 years of combined experience in local government, most as high-level managers, including Citygate’s President, a city manager, a finance director, a development services director, a homelessness services specialist, a public works director, two chiefs of police (including a chief with significant tribal relations expertise and another with rural city experience), an undersheriff, and two fire chiefs.
Citygate has extensive experience with small and rural agencies, as well as a nearly identical project scope. We have worked extensively with small and rural agencies, including currently for the City of Angels, after initially performing an organizational review and budget stabilization study with a scope of work nearly identical to Sonora’s contemplated study.
Citygate has extensive experience with citywide operational efficiency and financial studies.
We have completed numerous successful citywide operational, efficiency, financial, and staffing reviews throughout the western United States.
Citygate has deep experience reviewing every function in the City’s scope, including with reviews focusing on strategic planning and goal-setting, finance, city administration, homelessness, community and economic development, public works, police and fire services, tribal fire service delivery, tax sharing, annexation, and LAFCOs.
We are committed to our clients’ future success. When Citygate commits to a client, we commit to that client’s long-term success, far beyond the scope of an initial project. Our goal is not to serve 1,000 clients once, but rather to serve a small number of clients many times over. We are proud to say that 70 percent of Citygate’s revenue results from repeat business, referrals, and sole source procurements. Our clients are happy and we strongly encourage the City to contact our project references.
* * *
As President of the firm, I am the contact person for this proposal and I am authorized to execute a binding contract on behalf of Citygate. Please feel free to contact me at our headquarters office, located in Folsom, California, at (916) 458-5100, extension 101 or via email at [email protected]. Please also send emails to [email protected] to ensure a prompt response.
Sincerely,
David C. DeRoos, MPA, CMC, President
14 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Table of Contents page i
TABLE OF CONTENTS
Section Page
Section A—Cover Letter.................................................................................................Precedes Table of Contents Section B—Statement of Understanding ...................................................................................................................3 B.1 Project Approach and Study Background...................................................................................3 B.1.1 Project Scope and Objectives ......................................................................................3 B.2 Work Plan...................................................................................................................................4 B.3 Optional Review Elements.........................................................................................................9 B.3.1 Optional Review of Homelessness Options and Strategies .........................................9 B.3.2 Optional Review of Tribal Partnership and Service Delivery .....................................9 B.4 Tentative Project Schedule and On-site Meetings......................................................................9 B.5 Support and Information Required from the City.....................................................................10 B.6 Staffing Required for Requested Services................................................................................10 B.7 Hours per Task .........................................................................................................................11 Section C—Company Information...........................................................................................................................12 C.1 Contact Information..................................................................................................................12 C.2 Consultant Contact Information ...............................................................................................12 C.3 Hourly Rates.............................................................................................................................12 Section D—Qualifications and Experience..............................................................................................................13 D.1 Firm Introduction .....................................................................................................................13 D.2 Project Team Qualifications.....................................................................................................13 D.3 Project Team Members.............................................................................................................14 D.4 Similar Projects Performed within Past Five Years..................................................................17 Section E—References ..............................................................................................................................................20 Section F—Proposal Fees..........................................................................................................................................21 F.1 Core Work Plan Cost................................................................................................................21 F.2 Optional Work Plan Items and Associated Fees.......................................................................21 F.3 Pricing Approach......................................................................................................................21 Appendices
Appendix A Code of Ethics
Appendix B Project Team Resumes
15 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section B—Statement of Understanding page 3
SECTION B—STATEMENT OF UNDERSTANDING
Citygate Associates, LLC (Citygate) is a Virtual City Hall, with extensive expertise in almost every aspect of local government and specialized expertise in operational efficiency and financial stabilization strategies. Our team is comprised of retired executive-level officials who remain committed to public service and supporting the mission of their colleagues. Our consultants possess the years of experience to have seen the best and the worst, and the insight to know how to manage the challenges within the unique political context of local government.
We understand the challenges faced by the City of Sonora (City). Local governments are facing increasing demands for services and rising costs, yet are restrained by limited sources of revenue.
The need to be efficient and effective is paramount to future financial and political sustainability.
To achieve these goals, the City needs an experienced team that can evaluate both the big picture and the small details, that can provide the context of standard benchmarks but the creativity of new solutions, and that has the ability to craft recommendations with an understanding of the specific cultural and contextual needs of Sonora. Further, a Citywide operational efficiency study is a significant investment in time and resources; Sonora needs a team it can trust to meet deadlines and provide responsive, achievable results. Citygate can confidently meet those needs! B.1 PROJECT APPROACH AND STUDY BACKGROUND
The City is soliciting proposals to conduct an organizational review and budget stabilization assessment with the purpose of developing a strategic, goal-focused, sustainable budget strategy.
The Work Plan needs to address the following areas: Steering Committee participation, strategic goal-setting, community and Council participation, organizational review, budget stabilization study, alternative analysis, and an implementation plan.
Essentially, the study to be produced should assess the City and its operations, examine both revenues and expenditures, and report to the City where it is now, both operationally and financially, and what options it has for future revenue growth and expenditure controls and/or reductions. That report and accompanying fiscal models can be used in strategic planning with the City Council, staff, and community members. The study needs to provide a disciplined spending approach over the next five years that increases operational efficiency, prioritizes critical needs, and pursues a long-term growth strategy that can grow the tax base.
B.1.1 Project Scope and Objectives
We understand that the scope of the study encompasses the following objectives. Each scope element is clearly covered within Citygate’s Work Plan, as described in italics. ◆ Work with a project Steering Committee to determine areas of focus for the planning process. Covered in Task 2.1 (also see Task 5.3).
◆ Facilitate an Organizational Review including a review and analysis of the organizational structure; department operations; identification of short- and long-term challenges; basic 16 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section B—Statement of Understanding page 4
service delivery; staffing and capital/facility infrastructure needs; and evaluation of best practices for small rural cities. Covered in Tasks 3.1 and 3.2. ◆ Complete a Budget Stabilization Study with presentation of sustainable budget scenarios including findings from the Organizational Review; a five-year financial forecast related to the General Fund and other applicable major funds; identification and analysis of expenditure reduction strategies; recommendations for alternative service delivery models which may include contracting opportunities, private partnerships, or consolidation; identification and analysis of revenue enhancements including but not limited to consideration of local funding alternatives, planning considerations, annexation strategies, and other financial recommendations necessary to maintain City service delivery and infrastructure needs. Covered in Tasks 3.3, 3.5, and 3.6 (also see Tasks 5.2 and 5.4). ◆ Facilitate strategic goal-setting workshops with Council Members and the Community necessary to guide strategic investments with limited resources and prepare for the upcoming annual budget. Covered in Tasks 2.3 and 4.2.
◆ Develop an implementation plan including recommendations for financial policies; growth strategies; exploration of local funding alternatives; and methods, timelines, and prioritization of short- and long-term implementation measures. Covered in Task 4 and 5. ◆ Review and provide recommendations related to annexation strategies and LAFCO processes, city and county finances, tax share negotiations, economic development, and public safety. Tribal relations and homelessness can be addressed in a second project phase at an additional cost. Covered in Tasks 3.3, 3.4, 3.5, and 5.1.
B.2 WORK PLAN
Citygate’s Work Plan to address the City’s scope of work is comprised of five tasks. Our Work Plan has been developed consistent with our experience in conducting hundreds of organizational assessments as well as our consultants’ experience managing cities through severe economic circumstances.
Task 1: Initiate and Manage the Project
1.1 Discuss Project with the City to Initiate Study
A key to a successful review is a mutual understanding of the project’s scope and objectives.
Citygate will conduct a videoconference with the City Administrator to correlate our understanding of the study’s scope and ensure that our Work Plan and project schedule are mutually agreeable.
1.2 Obtain and Review Documentation
Our document review will include the City budget, audit reports, and departments’ mission statements, overall strategic work plans, goals and objectives, organization charts, staffing 17 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section B—Statement of Understanding page 5
guidelines, position descriptions, operating and capital budgets, ongoing management information reports, special reports, operating and workload statistics, user fees and charges, and pertinent City, state, and federal legislation and guidelines.
1.3 Monitor Engagement Progress and Completion of Tasks We have combined the initial task of starting the project with the ongoing task of monitoring, directing, and administering the project. In addition to ongoing oral progress reports with assigned City staff, we will provide monthly status reports briefly describing work performed in the prior month, work planned for the current month, and any issues related to the study scope, budget, or timeframe.
Task 2: Communicate with Steering Committee and Involve Stakeholders
2.1 Meet On-Site with Steering Committee Members as Part of the On-Site Interviews To determine the areas of focus, Citygate will meet on-site with Steering Committee members.
2.2 Interview Elected Officials, City Management, and Other Stakeholders To enhance our understanding of the issues at stake in this review, we will meet on-site with and interview the Mayor, City Council members, the City Administrator, and department heads. The Project Team will also interview other key staff and/or public stakeholders, as identified in collaboration with the Steering Committee. Some interviews will be conducted in a hybrid format with a consultant on-site and another joining by videoconference. If additional interviews are needed throughout the study, they will be done by videoconference.
2.3 Community Workshop
Citygate will facilitate one on-site strategic goal-setting workshop with the public and gather community input on community priorities, service levels, and goals.
2.4 (Optional) Conduct Employee Survey
Citygate will optionally conduct a confidential, online employee survey, designed in coordination with City management, to allow all City employees the opportunity to participate in Citygate’s evaluation in a constructive, confidential manner. The survey will provide opinions and perceptions about topics such as mission, goals, objectives, workload, staffing, organizational structure, customer service, training, reporting relationships, cost-cutting opportunities, etc.
2.5 (Optional) Conduct Community Survey
Citygate will optionally conduct a community survey to obtain community input on service priorities, revenue growth strategies, cost-cutting measures, and community and cultural values. 1 1
Surveys will be internet-based. We would require the assistance of the City in promoting the survey(s) via available City and Department online and social media platforms. We assume that the survey will be in English only. If other languages are desired, modest additional fees will be incurred to create the additional survey(s). 18 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section B—Statement of Understanding page 6
Task 3: Conduct Organizational Review and Budget Stabilization Study
3.1 Analyze the Systems and Procedures Employed to Deliver Services In this task, we will evaluate deployment, training, competing uses for resources, and the effective use in carrying out tasks assigned. Our analysis will give particular attention to unmet needs, trend analysis, and alternatives to existing current delivery mechanisms. Our objective in this task is to develop an understanding of how the City operates. This will include how each department (1) is designed to work; (2) actually works in practice; (3) positively or negatively interfaces with other systems; and (4) achieves effective and efficient delivery of services.
3.2 Complete Organizational Assessment and Agency Comparison We will ensure our assessment addresses the following questions. We will also compare the City of Sonora to several similar small agencies using three to five agreed-upon metrics with the City Administrator.
◆ Is there an adequate mix of staff skill sets and capabilities to handle the work of each department?
◆ Are the roles of each department clearly established and accepted? ◆ Are there efficiencies or improvements that can be achieved through the consolidation of processes, job duties, the elimination of redundancies, etc.? ◆ Can training improvements add value, efficiency, and effectiveness? ◆ Are the functions of each department organized logically? ◆ Are management and supervisory spans of control efficient and effective? ◆ Is there a structured process for objective-setting, priority-setting, and service delivery planning? If so, is it effective?
◆ Does each department have the resources necessary to achieve their objectives and expected service levels?
◆ Are the facilities and equipment available to the departments adequate to effectively meet service demands? This analysis will be based primarily on interviews, employee survey data, and observations made during Citygate’s on-site visit, not a comprehensive assessment of facilities and equipment.
◆ Are communications within and among the departments effective? ◆ Has each department taken advantage of available technology and modern management practices to improve organizational effectiveness?
◆ Are reporting and records systems adequate?
◆ Is long-term planning conducted?
◆ Is there an effective management system for controlling expenditures? 19 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section B—Statement of Understanding page 7
3.3 Analyze Revenues, Expenditures, and Options for Revenue Enhancement and Cost Cutting
Citygate’s assessment will address the following questions about revenues and expenditures:
◆ What revenue sources exist? What opportunities exist for revenue enhancements, including local funding alternatives, tax-sharing agreements, growing the local tax base, potential land uses within sphere of influence that align with community culture and expectations, and/or annexation of land, and pursuing economic development opportunities? ◆ What expenditures exist? Are there opportunities for contracting, private partnerships, or consolidation?
◆ What cost reduction strategies are available within both present and future scenarios to align service delivery goals with available resources?
3.4 Review of Public Safety
Specifically, regarding public safety, Citygate will perform the following:
◆ Issue a short questionnaire to the public safety leaders regarding staffing, line item budget, and age of facility and fleet.
◆ Issue a Strengths, Weaknesses, Opportunities, and Threats (SWOT) questionnaire to public safety personnel to obtain their input.
◆ Request the Police and Fire Departments to prepare a short memo to describe their envisioned needs/solutions triaged as:
➢ Critical – have to meet regulatory operating and safety laws ➢ Should have – to meet Sonora’s reoccurring workload needs from the public ➢ Nice to have – to meet Sonora’s values for community services ◆ Conduct one follow-up interview to understand their answers and perspectives. ◆ Prepare a summary of opinions, findings, and recommendations for inclusion in the Draft Report.
3.5 Develop a Five-Year Forecasting Model
Citygate will create an instrument that can be readily updated, used, and maintained by the City for use in future budgeting processes and submit a draft to the City for review.
3.6 Complete Budget Stabilization Analysis
Citygate will provide financial and budgetary principals to build best practice policies and procedures necessary to assist with sustainable financial choices.
3.7 Meet with the City Administrator to Review Preliminary Findings via Teleconference At the conclusion of Citygate’s primary analysis in Task 3, Citygate will meet with the City Administrator via videoconference to review and substantiate Citygate’s preliminary findings and 20 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section B—Statement of Understanding page 8
recommendations to date. In addition, Citygate will collaborate with the City Administrator to identify key strategic perspectives that will lay the groundwork for success in Task 4.
Task 4: Facilitate Strategic Goal-Setting and Workshops
4.1 Prepare PowerPoint Presentation for Strategic Goal-Setting Workshops The Citygate team will prepare a PowerPoint presentation summarizing preliminary findings and recommendations and outlining the strategic goal-setting workshop process to be used with the Council Members.
4.2 Meet with City Council Members to Facilitate a Strategic Goal-Setting Workshop Citygate will present preliminary findings and recommendations to the City Council and facilitate a strategic goal-setting workshop, first providing an update on employee and community input and financial projections, and then to focus on strategic goal-setting. This step will allow Citygate and the City to collaboratively guide strategic investments with limited resources based on community goals.
4.3 Summarize Recommendations Based on Goal-Setting Workshops Citygate will prepare a summary of the goal-setting workshops, input received from Council and community members, and financial recommendations for inclusion in Citygate’s Draft Report.
Task 5: Produce and Present the Draft and Final Reports
5.1 Prepare a Draft Report
Once we have integrated all Task 4 feedback, we will then prepare a Draft Report including findings, recommendations, and proposed implementation strategy. Our report will be high level and focus on solution implementation.
5.2 Deliver the Draft Report and Supporting Financial Models Upon completion of the Draft Report, it will be sent to the City Administrator for comments using the track changes and insert comments tools in Microsoft Word.
5.3 Meet with Steering Committee to Review Report
To ensure that the Steering Committee areas of focus have been addressed for the planning process, Citygate will review the Draft Report with the Steering Committee by videoconference.
5.4 Revise the Draft Report; Produce and Present Final Report Once we receive feedback on the Draft Report from the City, we will then make the necessary changes to finalize the report. Citygate will submit the Final Report and final financial models to the City and present the Final Report in a public meeting. 21 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section B—Statement of Understanding page 9
B.3 OPTIONAL REVIEW ELEMENTS
Citygate presents the following options for the City’s consideration. If desired by the City, these can be reviewed in a later project phase, to minimize costs for the core project.
B.3.1 Optional Review of Homelessness Options and Strategies Citygate’s assessment will address the following questions:
◆ Do strategic plans and budgets exist to address and responding to chronic homelessness? ◆ What current organizational efforts are in place to respond to chronic homelessness, including police, public works, fire, and other services? ◆ What is the effectiveness of the existing homeless services ecosystem such as services provided by Amador Tuolumne Community Action Agency, Lambert Community Center, Give Someone a Chance, Nancy’s Hope, and other supportive services including the roles of the State of California, Tuolumne County, Central Sierra Continuum of Care, and local non-governmental organizations?
◆ What opportunities exist for additional funding sources and strengthening the budget structure for responding to homelessness?
◆ What organizational best practices exist to respond to homelessness? ◆ What additional opportunities exist for collaboration and coordination with various City departments, the Continuum of Care, businesses, and homeless service providers? ◆ Can the formal and informal organizational alignment, structure, and staffing related to homelessness be strengthened?
B.3.2 Optional Review of Tribal Partnership and Service Delivery Citygate’s assessment will address the following questions:
◆ What services is the City providing to the Chicken Ranch Band of Mi-Wuk Indians? ◆ Is service provision sufficient and right sized or are enhanced service levels desired now or in the future?
◆ Are any current financial agreements in place with the tribe? If so, are they properly sized and funded?
◆ If not, what opportunities exist to strengthen funding for the desired service levels? ◆ How can the tribe and City best partner in the five-year planning horizon of this study? B.4 TENTATIVE PROJECT SCHEDULE AND ON-SITE MEETINGS
Citygate is prepared to start this engagement in February. Citygate understands the City’s desire to have Council- and community-informed financial recommendations in time to prepare for the 22 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section B—Statement of Understanding page 10
upcoming annual budget. Following is a table showing the duration of each task as well as the onsite meetings and deliverables.
Task Months On-Site Meetings / Deliverables
1: Initiate and Manage the Project Month 1
Submit document request list.
Submit monthly status reports.
2: Communicate with Steering
Committee and Stakeholders Month 1
Meet on-site with Steering Committee members.
Interview elected officials, City management, and
other stakeholders.
Conduct community workshop.
3: Conduct Organizational/Budget
Stabilization Study Months 2–3
Submit draft five-year forecasting model.
Preliminary findings briefing PowerPoint presented
by videoconference.
4: Facilitate Strategic GoalSetting Workshops Month 3
One strategic goal-setting workshop with the Council
Members.
Submit PowerPoint to present findings and
recommendations and facilitate workshops.
Provide financial recommendations based on goalsetting workshops. 5: Produce and Present the Draft
and Final Reports Months 4–5
Submit Draft Report.
One videoconference to discuss the Draft Report
with the City Administrator and the Steering
Committee.
Submit Final Report and final five-year forecasting
model and present in public meeting.
B.5 SUPPORT AND INFORMATION REQUIRED FROM THE CITY
We assume the City support staff will assist with obtaining documents, scheduling interviews, obtaining necessary contact addresses, providing space for on-site meetings and workshops, scheduling and promoting the public workshop, and electronically distributing survey announcements.
B.6 STAFFING REQUIRED FOR REQUESTED SERVICES
As further described in Sections C and D, Citygate has assembled a deep team of specialists possessing a range of skills required to properly conduct this organizational review and budget stabilization study. To demonstrate how our team of specialists is positioned to comprehensively address each of Sonora’s project scope elements, the following matrix outlines key project areas of specialty and the team members positioned to address each area. 23 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section B—Statement of Understanding page 11
Project Scope Areas
David DeRoosStacey BristowAndrew GreenConnie JacksonLyle SmithGraybealSteven FrazerGary ElliottJames OrtegaStewart GarySamuel MazzaNicholas Pinhey Organizational Structure / Department Operations ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Basic Service Delivery ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Staffing Needs ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Capital/Facility Infrastructure Needs ✓ ✓ ✓ ✓ ✓
Best Practices for Small Rural Cities ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ City & County Finances / Budget Stabilization ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Alternative Service Delivery Models ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓ Facilitation / Strategic Goal Setting ✓ ✓ ✓
Tribal Relations ✓ ✓ ✓ ✓ ✓ ✓
Homelessness ✓ ✓ ✓
Annexation Strategies & LAFCO Processes ✓ ✓ ✓ ✓
Tax Share Negotiations ✓ ✓ ✓ ✓ ✓
Economic Development ✓ ✓ ✓ ✓ ✓
Public Safety ✓ ✓ ✓ ✓ ✓ ✓ ✓ ✓
Project Management ✓ ✓ ✓ ✓
B.7 HOURS PER TASK
As required by the RFQ, the following table identifies the estimated hours required per task.
Task Hours*
1: Initiate and Manage the Project 42
2: Communicate with Steering Committee and Stakeholders 55 3: Conduct Organizational/Budget Stabilization Study 79 4: Facilitate Strategic Goal-Setting Workshops 28
5: Produce and Present the Draft and Final Reports 91
*Not included in this amount are the hours for the optional employee and community surveys and optional homelessness and tribal partnerships reviews.
24 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section C—Company Information page 12
SECTION C—COMPANY INFORMATION
C.1 CONTACT INFORMATION
Citygate’s headquarters office is located at 600 Coolidge Road, Suite 100, Folsom, CA 96530.
Citygate’s office staff can be reached by phone at (916) 458-5100. While we have consultants located throughout the United States, Citygate has no other branch offices.
Our headquarters support team provides oversight and project support to all consultants, including a rigorous quality control and production team to assure all documents provided to clients exceed Citygate’s and clients’ standards.
C.2 CONSULTANT CONTACT INFORMATION
Citygate’s President, David DeRoos, can be reached by phone at (916) 458-5100 extension 101, and by email at [email protected]. Citygate’s Project Manager, Stacey Bristow, can be reached by phone at (916) 458-5100 and by email at [email protected].
Citygate’s complete Project Team is introduced in Section D.
Citygate is not utilizing any subcontractors for this project.
C.3 HOURLY RATES
Classification Rate Consultant
Citygate President / Project Oversight $260 per hour David DeRoos Local Government Specialist / Project Manager
/ Facilitator
$195 per hour Stacey Bristow
Local Government Fiscal Specialist / Assistant
Project Manager
$215 per hour Andrew Green
Local Government Specialist $195 per hour Connie Jackson Homelessness Services Specialist $195 per hour Lyle SmithGraybeal Police Services / Tribal Specialist $195 per hour Steven Frazer Police Services Specialist $215 per hour Gary Elliott
Police Services Specialist $195 per hour Jim Ortega
Public Safety Principal $260 per hour Stewart Gary
Senior Fire Services Specialist $250 per hour Samuel Mazza Public Works Specialist $225 per hour Nicholas Pinhey
Report Project / Survey Administrator $140 per hour Citygate Production Team Administrative Support $100 per hour Citygate Finance/Admin Team 25 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section D—Qualifications and Experience page 13
SECTION D—QUALIFICATIONS AND EXPERIENCE
D.1 FIRM INTRODUCTION
Citygate Associates, LLC has conducted well over 600 consulting reviews for nearly 400 government agencies throughout the United States. Please visit our website at www.citygateassociates.com for further information. Citygate’s qualifications to perform organizational review and budget stabilization study are exceptional, based on the following:
◆ Citygate has extensive experience with small and rural agencies, as well as a nearly identical project scope. We have worked extensively with the City of Angels, including on an organizational review and budget stabilization study with a scope of work nearly identical to Sonora’s contemplated study. We also recently served the City of San Juan Bautista by performing an organizational and financial review, including providing financial forecast and budgetary models, and facilitating a goal-setting workshop with the Council. Citygate also recently completed Citygate completed a Fire Master Plan update for the Groveland Community Service District. Several other small and/or rural agencies we have served include the California Cities of Calistoga, Colusa, Copperopolis, Dorris, Emeryville, Sonoma, and Winters.
◆ Citygate has extensive experience with citywide operational efficiency and financial studies. We have completed numerous successful citywide operational, efficiency, financial, and staffing reviews throughout the western United States, including recently for the Cities of San Juan Bautista and West Hollywood, as well as for the Cities of Albany, Colton, Corona, Covina, Delano, Glendale, and Pinole to name several. ◆ Citygate has deep experience reviewing every function in the City’s scope, with reviews focusing on strategic planning and goal-setting, finance, city administration, homelessness, community and economic development, public works, police and fire services, tribal fire service delivery, tax sharing, annexation, and LAFCOs.
D.2 PROJECT TEAM QUALIFICATIONS
Primary members of our Project Team include the
following experienced consultants. Full resumes
of each consultant are provided in Appendix B of
this proposal. Citygate has a number of
experienced consultants available as part of our
“Virtual City Hall” model and depending on what
specific study issues arise throughout the
engagement, we can call upon other Citygate
consultants as required for specific expertise. All
Citygate consultants adhere to the Code of Ethics
presented in Appendix A.
“I very much appreciated
your insight and your
intuitive natures gained
from your experiences in
government services.”
Dennis C.W. Smith
Commissioner, Jackson County
26 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section D—Qualifications and Experience page 14
D.3 PROJECT TEAM MEMBERS
David DeRoos, MPA, CMC, Citygate President / Project Oversight Specific Areas of Focus: Project Management and Oversight Mr. DeRoos is the President of Citygate Associates, LLC. He earned his MPA degree from USC. He has over five years of operational experience as a local government administrator in economic development, redevelopment, land use planning, budgeting, and personnel, and over 30 years of consulting experience performing operations and management reviews of local government functions. Before joining Citygate in 1991, he was a Senior Manager in the State and Local government consulting division of Ernst & Young. He has directed every Citygate consulting engagement including many Citywide reviews.
Stacey Bristow, Local Government Specialist / Project Manager / Facilitator
Specific Areas of Focus: Project Management, Organizational Review, Community and Economic Development, Council and Public Strategic Workshop Facilitation
Ms. Bristow has more than 25 years of experience in high-level local government management. She has experience in both the public- and privatesector, having served Alameda County for 16 years and the City of Hayward for more than 10 years in a variety of capacities, and has extensive experience with city councils, boards of directors, commissions, developers, unions, communities at large, special districts, and homeowner associations. Ms. Bristow most recently served in the roles of Interim Director and Deputy Director of Development Services for the City of Hayward, and was responsible for full operational oversight, serving as chair of the Citywide Complete Communities Strategic Initiatives and First Destination Park. She also served as executive team member for City Council Strategic Priorities and two city master plans, and was responsible for 20-year General Plan development and implementation of more than 100 development projects and a downtown-specific plan and two master plans.
Andrew Green, MBA, Local Government Finance Specialist / Assistant Project Manager
Specific Areas of Focus: Budget Sustainability, Annexation, Tax-Sharing, Economic Development
Mr. Green has over 35 years of experience in all aspects of municipal finance, including as a professional manager. During his career, Mr. Green has had primary responsibility for the development and monitoring of citywide budgets for four municipalities, with total budgets ranging from $70 million to $680 million. He developed and fine-tuned long-range financial plans for multiple municipalities, including playing a lead role in taking the City of Pasadena from a $10 million 27 Item 5.
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Proposal to Perform an Organizational Review and Budget Stabilization Study Section D—Qualifications and Experience page 15
General Fund operating deficit to a $5 million General Fund operating surplus. Mr. Green has extensive experience with all aspects of the operations of a municipal finance department. He has also served on many government finance organizations including California Society of Municipal Finance Officers Chapter Co-chair, League of California Cities Employee Relations Department representative, and the State of Nevada Committee on Local Government Finance committee member.
Connie Jackson, Local Government Specialist
Specific Areas of Focus: Organizational Review of Human Resources and Information Technology, Rural City Best Practices
Ms. Jackson has over 32 years of local government management experience.
She served as City Manager of the Mendocino County coastal community of Fort Bragg, California, for four years and more recently as City Manager of San Bruno, California, for 15 years, where she led the City’s work on establishment of the YouTube and Walmart world headquarter campuses. She previously served for over 13 years in the Office of the City Manager in the City of Hercules, California, as Assistant City Manager, as Budget, Redevelopment, and Economic Development Manager, and as Parks and Recreation Director. Ms. Jackson has extensive experience developing and implementing successful fiscal, organizational, and operational strategies to improve operational effectiveness and resolve serious financial deficit situations, developing and implementing long-term community development strategic plans, addressing complex development-related issues, and developing public engagement strategies.
Lyle SmithGraybeal, MS, Homelessness Services Specialist Specific Area of Focus: Homelessness Services
Mr. SmithGraybeal has over 25 years of experience working with nonprofits and specializes in community development and homelessness reduction strategies. He serves as the Vice President of Community Development with United Way of Weld County, where he has been part of the regional leadership team that received permission from the US Department of Housing and Urban Development (HUD) to found a new continuum of care (CoC) for homelessness services, named the Northern Colorado Continuum of Care (NoCO CoC). Since the beginning of shared regional efforts in February 2016, the NoCO CoC and its partners have assessed over 2,000 individuals and families as experiencing homelessness and helped two-thirds of these regain housing. It is likely there will be an end to veteran homelessness in 2022. 28 Item 5.
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Proposal to Perform an Organizational Review and Budget Stabilization Study Section D—Qualifications and Experience page 16
Chief Steven Frazer, MPA, Police Services / Tribal Specialist Specific Areas of Focus: Police Services and Tribal Service Delivery Chief Frazer has worked in law enforcement for 34 years. He is currently the Chief of Police for the City of Prior Lake, which provides police services for the city and the Shakopee Mdewakanton Sioux Community and has served in this role for the past three years. The majority of Chief Frazer’s career has been spent with the Saint Paul Police Department, where he rose to the rank of Senior Commander. He has also served as the Chief Deputy for the Ramsey County Sheriff Office. In his current role, he has worked with tribal leadership to bring relationships and day-to-day operations to new levels of trust and efficiency. Chief Frazer has extensive operational, investigative, and labor relations experience and developed the training and tactics for crowd management utilized regionally.
Undersheriff Gary Elliott, MS, Police Services Specialist Specific Area of Focus: Police Services
Undersheriff Elliott has over 35 years of public service, including 30 years of law enforcement experience and 35 years in the United States Army Reserve.
As the Second in Command of a medium sized Sheriff’s Office in Northern California, Undersheriff Elliott was responsible for the day-to-day operations of the organization, which included over 560 full-time employees and a budget in excess of $110 million. His Sheriff’s Office experience includes 18 years on the SWAT Team as a tactical operator, team leader, and commander. Undersheriff Elliott also served in the Investigations Bureau for many years. Undersheriff Elliott also has extensive leadership experience as a commissioned officer in the United States Army Reserve. He retired at the full rank of Colonel in September of 2018 after 35 years of service.
Chief James Ortega, MS, Police Services Specialist
Specific Area of Focus: Police Services
Chief Ortega has over 33 years of law enforcement experience. From 2017 through 2020, he served as the Chief of Police for the Placerville Police Department. During his tenure, the Department had a staff of 30 full-time employees (19 sworn and 11 support staff members) and an annual budget of $3.2 million. Prior to his retirement, Chief Ortega initiated a collaborative effort between El Dorado County and the City of Placerville, California, to better address the homeless / mentally ill community. The first six months of this collaboration resulted in a 37 percent decrease in calls for service related to the homeless population. 29 Item 5.
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Proposal to Perform an Organizational Review and Budget Stabilization Study Section D—Qualifications and Experience page 17
Chief Stewart Gary, MPA, Public Safety Principal
Specific Area of Focus: Fire Services
Chief Stewart Gary is the Public Safety Principal for Citygate Associates. Chief Gary is the retired Fire Chief of the Livermore-Pleasanton Fire Department in Alameda County, California. He has consulted for many small fire departments, including many relying partially or fully on volunteers, and knows well the services options available. Chief Gary also led Citygate’s brief fire services assessment for Angels Camp as part of Citygate’s Organization Review and Budget Stabilization Study and a regional fire services study in San Diego County that evaluated fire services provision for all tribes in the County.
Chief Samuel Mazza, CFC, CFO, EFO, Senior Fire Services Specialist
Specific Area of Focus: Fire Services
Chief Mazza is a Senior Fire and Emergency Services Specialist with over 40 years of fire service experience. He is the retired Fire Chief of the City of Monterey, California, where he oversaw a successful consolidation of fire services with the City of Pacific Grove. Prior to his service with Monterey, Chief Mazza spent over 30 years with CAL FIRE in numerous assignments spanning state, county, and fire and special district services. He has extensive collaborative and command experience, including appointment as the Incident Commander on a statewide Incident Management Team, and he continues to serve as a member of the Monterey County Emergency Operations Center staff.
Dr. Nicholas Pinhey, DPA, Public Works Specialist
Specific Areas of Focus: Public Works, Water, and Wastewater Dr. Pinhey has over 33 years experience in the management of municipal utility and public works departments and has served as a Director of Public Works or Assistant Public Works Director for the majority of his career. He recently served as Interim General Manager for the Stanislaus Regional Water Authority. Dr. Pinhey has managed full-service public works departments in cities serving populations of 45,000 to 215,000. Dr. Pinhey has experience in water and wastewater utility operation and management, direct experience in all aspects of Public Works maintenance activities and has directed engineering functions and major capital projects.
D.4 SIMILAR PROJECTS PERFORMED WITHIN PAST FIVE YEARS
Following is a small selection of citywide and departmental reviews covering a variety of disciplines, including public safety, finance, economic development, homelessness, tax sharing, annexation, LAFCOs, and goal-setting workshops with City Councils. 30 Item 5.
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Proposal to Perform an Organizational Review and Budget Stabilization Study Section D—Qualifications and Experience page 18
City of Angels, CA – Strategic Planning and Facilitation Assistance Citygate is currently providing strategic planning and facilitation assistance for the City of Angels, California, as a follow-up to Citygate’s previous two studies for the City. Citygate will review the City’s current fiscal condition at a high level to identify opportunities and challenges. Citygate is facilitating an on-site strategic planning session with the City Council.
Organizational Review and Budget Stabilization Study – Citygate conducted an organizational review and budget stabilization assessment for the City of Angels, California, with the purpose of developing a strategic, goal-focused, sustainable budget strategy. The Work Plan addressed the following areas: steering committee participation, strategic goal-setting, community and council participation, an organizational review including an online employee survey, a budget stabilization study, an alternative service delivery model analysis, and an implementation plan.
City of San Juan Bautista, CA – Observational Organizational and Financial Review with GoalSetting Workshop Citygate completed a high-level observational organizational and financial review for the City of San Juan Bautista, California. This review included analyzing revenues and expenditures for the General Fund and reviewing the City’s Annual Audit to inform Citygate’s budget sustainability recommendations. Citygate’s study included a facilitated goal-setting Council workshop.
City of West Hollywood, CA – Citywide Staffing Analysis and Optimization Plan Citygate completed a staffing analysis and optimization plan for the City of West Hollywood, California. The scope of the study included an in-depth analysis of the City’s current staffing and operations, including the creation of a detailed organizational staffing optimization plan, with the strategic objective of assisting City officials when making important decisions related to services and programs provided to citizens.
Monterey County, CA – Homeless Programs, Funding, and Coordination Review – CURRENT Citygate is currently performing an organizational review and analysis of Monterey County’s current homeless programs, funding, and coordination services. For this review, Citygate will identify, evaluate, and recommend funding sources and budget structure for the Homeless Services function; identify and recommend organizational best practices, including comparisons with like cities and counties; evaluate and recommend best practices for collaboration and coordination with various County departments, the Continuum of Care, local cities, school districts, businesses, and homeless service providers; and evaluate and recommend formal and informal organizational alignment, structure, and staffing for the Homeless Services function.
Review of the Resource Management Agency – Citygate conducted a review of the Resource Management Agency (RMA) of Monterey County, California. The objective of the study was to review current conditions, analyze opportunities for organizational changes and process improvements that can further enhance customer service, evaluate future service demands, and develop a Strategic Action Plan with a prioritized implementation schedule. 31 Item 5.
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Proposal to Perform an Organizational Review and Budget Stabilization Study Section D—Qualifications and Experience page 19
Contra Costa County, CA – Review of Proposed Tax Sharing Agreement Citygate reviewed the proposed tax sharing agreement between Contra Costa County and one incorporated city within the County. This review compared the current tax sharing agreement and the proposed amendment to the current agreement in regard to the County’s allocation pertaining to the development recently approved by the city.
City of Brawley, CA – Operational and Staffing Review of the Public Works Department Citygate is currently performing an operational and staffing review of the Public Works Department for the City of Brawley, California. This review will provide the City with a roadmap of recommendations to improve the public works processes and assure the highest level of timeliness and customer service, particularly for the processing, conditioning, and approval of development projects and anticipated increases in workload due to future economic development opportunities.
City of Hercules, CA – Organizational and Operations Review of the Human Resources Function Citygate is currently performing an organizational and operations review of the Human Resources function in the City of Hercules, California. This comprehensive review will assess the effectiveness of the current Human Resources functions, policies, procedures, and operations and, based on the study findings, identify areas of operational success, and provide a set of recommendations to enhance operations and effectiveness.
Groveland Community Services District, CA – Update of the Fire Master Plan Citygate completed a Fire Master Plan update for the Groveland Community Service District, to include potential development outside the District. This update included an evaluation of impacts of planned new developments outside the current District boundaries.
Solano County LAFCO, CA – Fire Districts Deployment and Fiscal/Governance Options Citygate performed a deployment analysis, with fiscal/governance options analysis, for the County of Solano Local Agency Formation Commission, which includes the Cordelia Fire Protection District, the Vacaville Fire Protection District, the Suisun Fire Protection District, and the Montezuma Fire Protection District.
City of West Sacramento, CA – Comprehensive Police Operations and Staffing Assessment Citygate is currently performing a comprehensive operations and staffing assessment for the Police Department in the City of West Sacramento, California.
City of Jurupa Valley, CA – Comprehensive City-Provided Police Department Feasibility Study Citygate conducted a feasibility analysis for the City of Jurupa Valley to determine the viability of separating from the Riverside County Sheriff’s Department and directly providing police services.
Yuba County, CA – Comprehensive Sheriff Services Delivery and Staffing Review Citygate completed a comprehensive services delivery and staffing review of the Yuba County Sheriff’s Department to examine the current delivery of services and provide recommendations of alternatives needed to meet current best practices concerning appropriate staffing levels. 32 Item 5.
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Proposal to Perform an Organizational Review and Budget Stabilization Study Section E—References page 20
SECTION E—REFERENCES
The following references are described in detail in the preceding section.
City of Angels, CA – Strategic Planning and Facilitation Assistance; Financial Action Plan in Response to COVID-19; Organizational Review and Budget Stabilization Study Contact: Rebecca Callen, City Administrator
Email: [email protected]
Phone: (209) 736-2181 ext 103
Address: 200 Monte Verda Ste B, City of Angels, CA 95222 City of West Hollywood, CA – Citywide Staffing Analysis and Optimization Plan Contact: David Wilson, City Manager
Email: [email protected]
Phone: (323) 848-6524
Address: 8300 Santa Monica Blvd, West Hollywood, CA 90069 Monterey County, CA – Review of the Resource Management Agency; Organizational Review of Monterey County’s Current Homeless Programs, Funding, and Coordination Services Contact: Nick Chiulos, County of Monterey Assistant County Administrative Officer Email: [email protected]
Phone: (831) 682-5772
Address: 168 West Alisal Street,3rd Floor, Salinas, CA 93901 City of Hercules, CA – Organizational and Operations Review of the Human Resources Function Contact: Dante Hall, City Manager
Email: [email protected]
Phone: (510) 799-8200
Address: 111 Civic Drive, Hercules, CA 94547
33 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section F—Proposal Fees page 21
SECTION F—PROPOSAL FEES
Our charges are based on actual time spent by our consultants at their established billing rates, plus reimbursable expenses incurred in conjunction with travel, printing, clerical, and support services related to the engagement. We will undertake this study for a “not-to-exceed” total cost based on our core Work Plan and Scope of Work, outlined here.
F.1 CORE WORK PLAN COST
Consulting Fees of
Project Team
Administration
(7.5% of Hourly Fees)
Reimbursable
Expenses
Total Citygate Core
Fees
$56,620 (295 hours) $4,247 $4,100 $64,967
F.2 OPTIONAL WORK PLAN ITEMS AND ASSOCIATED FEES
Below, Citygate presents the fees for optional Work Plan items, giving the City flexibility to customize the project based on its needs and available budget.
Option Fees
Employee Survey (Subtask 2.4) $3,964
Community Survey (Subtask 2.5) $4,386
Cost of Both Surveys $8,350
Project Cost if Both Surveys Added $73,317
Review of Homelessness Options and Strategies (see Section B.3.1) $3,843 Review of Tribal Partnership and Service Delivery (see Section B.3.2) $3,843 Cost of Both Optional Reviews $7,686
Project Cost if All Options Added $81,003
Citygate’s hourly rates are presented in Section C.3 per RFQ requirements.
F.3 PRICING APPROACH
The City may find our proposed scope or Work Plan consists of elements that are not desired.
Citygate always wants to meet or exceed our client’s expectations. Therefore, if we have “missed the mark” on our pricing or scoping of this project, we will remain flexible to make reductions to tasks, levels of service, and the budget as needed to achieve the City’s desired outcomes.
This price quote is effective for 30 days and includes one Draft Report review cycle as described in Task 5 of our Work Plan to be completed by Citygate and the City within 14 calendar days of delivery of the Draft Report. Additional draft cycles or processing delays requested by the City would be billed in addition to the contracted amount at our time and materials rates. The Draft 34 Item 5.
City of Sonora, CA
Proposal to Perform an Organizational Review and Budget Stabilization Study Section F—Proposal Fees page 22
Report will be considered final if there are no suggested changes within 30 days of the delivery of the Draft Report.
We will invoice monthly for time, reimbursable expenses incurred at actual costs (travel), plus a seven-and-a-half percent (7.5%) administration charge in lieu of individual charges for copies, phone, etc. Our invoices are payable within thirty (30) days. Citygate’s billing terms are net thirty (30) days plus two percent (2%) for day thirty-one (31) and two percent (2%) per month thereafter.
Our practice is to send both our monthly status report and invoice electronically. If we are selected for this project, we will request the email for the appropriate recipients of the electronic documents.
Hard copies of these documents will be provided only upon request. We prefer to receive payment by direct deposit, if available.
We request that ten percent (10%) of the project cost be advanced at the execution of the contract, to be used to offset our start-up costs. This advance would be credited to our last invoice. 35 Item 5.
CITY COUNCIL AGENDA REPORT
MEETING DATE: February 6, 2023
TO: City Council Members
FROM: Chris Gorsky, Administrative Services Director
SUBJECT: Accept the Mid-Year Budget Review for FY22/23; Consider approving the staff recommended budget changes as presented.
RECOMMENDATION
1. Accept the Fiscal Year 22/23 Mid-Year Budget Update with recommended changes.
2. Approve Budget Adjustments as Presented; Requires a 4/5th vote.
DISCUSSION
The City Council adopted the FY22/23 Budget on June 21, 2022. Revenue trends are in line with expectations, Sales and Use Tax revenues are down by 1% from our conservative budget estimates, while Transient Occupancy Tax (TOT) and the Public Benefit Fee for Cannabis dispensaries are up by 7% and 6%, respectively, for the General Fund. Each have been affected by the tentative macroeconomic situation and uncertainty caused by historic inflation rates. The adjusted revenues for all three sources are a net projected increase of $48,000 to the General Fund over what was originally budgeted.
The city received the second, and final, disbursement of Coronavirus State and Local Fiscal Recovery Funds (SLFRF) in FY22/23 of $581,786 and despite receiving those funds the City had a deficit for the first half of FY22/23 of $309,764 (p.14). The FY22/23 budget was a status-quo budget with no capital improvements, fails to address deferred maintenance, and continues the City’s history of critically underfunded departments. This demonstrates how important it was for the City to have passed Measure Y to help address this funding shortfall going forward. Measure Y will become effective April 1, 2023 and the City will begin to benefit in the third quarter of FY22/23.
Staff have identified a set of mid-year budget adjustments for Council’s consideration. The proposed budget changes reflect the revised estimates to revenues and expenditures necessitating the budget changes detailed on page 13 of the FY22/23 Mid-year report and include initial revenue estimates for Measure Y.
FISCAL IMPACT
The General Fund Mid-Year budget changes for the FY22/23 total $725,000, which include initial revenue estimates for Measure Y (p.13).
ATTACHMENTS
Mid-Year Budget Update
36 Item 6.
Mid Year Budget Report
FY 2022-2023
37 Item 6.
Table of Contents
INTRODUCTION 1
Timeframe and Limitations 1
Executive Summary 2
GENERAL FUND – KEY REVENUE ANALYSIS 3
Sales Tax 3
Property Tax 4
Franchise Fees 5
Business License Tax 6
Transient Occupancy Tax 7
Charges for Services 8
Licenses and Permits 9
Cannabis Dispensary Revenues 10
GENERAL FUND – KEY EXPENDITURE ANALYSIS 11
Salaries and Benefits 11
Operating Expenditures 12
FY22/23 RECOMMENDED FIRST HALF BUDGET ADJUSTMENTS 13
Summary of Recommended Budget Adjustments 13
FINANCIAL SUMMARIES, PROJECTIONS AND RECOMMENDATIONS 14 General Fund 14
Special Revenue Fund: Measure I 15
Measure I: Police Department 16
Measure I: Fire Department 17
Measure I: Public Works 18
DEPARTMENT UPDATES 19
COMMUNITY DEVELOPMENT 19
Mid‐Year Goals and Accomplishments 19
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POLICE DEPARTMENT 20
Mid‐Year Goals and Accomplishments 20
FIRE DEPARTMENT 21
Mid‐Year Goals and Accomplishments 21
PUBLIC WORKS DEPARTMENT 22
Mid‐Year Goals and Accomplishments 22
CONCLUSION 23
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Introduction
The City Council adopted the FY22/23 budget at its June 21st, 2022 meeting. The mid-year financial report provides an analysis of the City’s General and Special Revenue Funds revenues and expenditures for the first half of FY22/23, for the six months ending December 31st, 2022.
Recommended adjustments are made to ensure the budget reflects the City’s current revenue outlook and is responsive to changing financial landscape and city priorities.
These budget updates have two purposes. First, to provide regular updates to the City Council regarding revenue and expenditure trends ensuring the City Council has a strong understanding of the current financial condition, this is necessary to proactively respond to unanticipated changes or emerging trends. Second, and equally important, these reports increase the transparency of City finances. The City is ultimately accountable to its residents to use City revenues efficiently and effectively, providing the highest quality services. Ongoing public reporting provides taxpayers with the information they need to hold the City to this standard.
With respect to revenues: The City regularly monitors and adjusts its year-end revenue projections based on actual revenue performance and forecasting models to develop a more accurate picture of the City’s anticipated year-end financial position.
With respect to expenditures: The expenditure information in this report is extracted directly from the City’s financial management system, and adjustments are made to account for certain known payments, reimbursements, or transfers between City departments and funds that have not yet been processed in the system at the time of publication. It represents a snapshot of City expenditures at a certain point in time and does not reflect final FY22/23 adjustments.
Timeframe and Limitations
The information in this report is the most accurate and up-to-date information available at the time of publication. However, this report is not an audited financial statement and the numbers provided herein are preliminary and subject to change as the year progresses. No data on revenues and expenditures is final until the City has completed its annual financial audit, which is released each year for the prior year.
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Executive Summary
The total budget for FY22/23 is $17.8 million. Salaries and Benefits account for 42% of this total and 75% of the General Fund expenditures or Discretionary City Funds. General Fund expenditures for the first half are trending within our expected range, with salaries and benefits trending around 48% as expected, staff expects higher costs in the second half of the year. City staff continue to do a great job controlling operational expenditures with first half expenditures at about 48% of budget.
In total, revenue trends are in line with expectations, Sales and Use Tax revenues are down by 1% from our conservative budget estimates, while Transient Occupancy Tax (TOT) and the Public Benefit Fee for Cannabis dispensaries are up by 7% and 6%, respectively, for the General Fund. Each have been affected by the tentative macro-economic situation and uncertainty caused by historic inflation rates. The adjusted revenues for all three sources are a net projected increase of $48,000 to the General Fund over what was originally budgeted. See the recommended budget adjustments on page 13.
With the noted budget adjustments and six months of data available the City appears to be on budget for the second half of the year, with only the revenue adjustments and the expenditure adjustments, as noted. While projections remain strong the City has several obligations that it has not fully accounted for, such as: infrastructure maintenance, pension obligations, facilities maintenance, fleet replacement and the costs of labor negotiations.
On July 18, 2022, the City Council approved Ordinance No. 890 and on November 8th, 2022, City of Sonora voters approved Measure Y, a 1% Transaction and Use Tax which becomes effective April 1, 2023. The City will begin to benefit from this new revenue in the last months of this Fiscal Year. Part of the recommended budget adjustments are FY22/23 conservative revenue estimates for Measure Y of $600,000.
FY22/23 budget was balanced with one time State and Local Fiscal Recovery Funds, as part of COVID-19 relief. We will begin the FY23/24 budget with that deficit and other unfunded costs, including rising employee costs, pension costs, and other operation costs. Measure Y came just in time.
FY22/23 Recommended Budget Adjustments
The recommended budget adjustments for the mid-year update appear on page 13.
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GENERAL FUND – KEY REVENUE ANALYSIS
The following discussion provides a status of significant General Fund revenue sources as of the first half of FY22/23, ending December 31, 2022. Staff monitors each revenue source closely and may recommend certain revenue adjustments based on revenue actuals or State and Federal budget actions.
Sales Tax
Sales tax is the largest revenue source for the City’s General Fund, accounting for 36% of budgeted General Fund revenues for FY22/23, a projected $3,397,100. Currently, the City’s General Fund receives .87 cents for every 7.75 cents of sales tax paid per dollar on retail sales and taxable services transacted within Sonora. Police, Fire and Public Works receive another ½ percent sales tax from Measure I, as detailed on page 16-19.
South Dakota v. Wayfair decision established that the State collects sales tax from goods that are shipped into the State from out of State merchants. The City sales tax revenues are benefitting from this change.
Analysis – First half sales tax receipts are trending 5% lower than those in the same period last fiscal year and 1% lower than the FY22/23 budget. The uncertain economic times and historically high Consumer Price Index (CPI) along with the associated increases in interest rates are starting to affect the economy. Staff will continue to monitor sales tax receipts and meet with the City’s sales tax consultant to analyze trends. For the second half of FY22/23 sales tax estimates have decreased slightly requiring a budget adjustment in the amount of ($72,000), or (2%). 42 Item 6.
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Property Tax
Property tax is the second largest revenue source for the City’s General Fund, accounting for 10% of budgeted General Fund revenues in FY22/23. Property tax is levied by the Tuolumne County Assessor’s Office at 1% of a property’s assessed value, of which the City receives approximately
12.6 cents per dollar paid on property located within the municipal limits of Sonora.
Analysis – Property Tax distributions are largely received in the second and fourth quarters, however the chart below depicts the first half receipts for the past four years as compared to the current fiscal year. Mid-year receipts are trending consistent with prior years. Property tax revenue for FY22/23 was budgeted for 2% growth over the previous year’s actuals projecting increasing property values on real estate transactions.
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Franchise Fees
Franchise fees are collected by the City for the privilege of operating a utility service within Sonora, and as a fee in lieu of a business license tax. Franchise fees are currently received from Comcast for cable television, PG&E for electric services, and Waste Management for solid waste collection services. Franchise fees represent 1.6% of budgeted General Fund revenues in FY22/23.
Analysis – Historically, franchise payments are not remitted equally throughout the fiscal year; therefore, second quarter receipts are not necessarily predictive. Total franchise fee revenues to date are 31% of budgeted total receipts, and similar to past years.
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Business License Tax
The city requires all businesses located within Sonora, or those that operate within Sonora, to obtain a business license. The amount of business license tax paid by each business is based on the type of business and designated zone the business is in, or operating in, and the number of business employees. These activities account for approximately 1.2% of annual General Fund operating revenues. Approximately 1,020 annual renewals and associated payments are processed each year and are due in January.
Analysis – Business license tax revenue has rebounded from the pandemic affected revenue of FY20-21. In FY20-21 many businesses were shuttered or closed permanently as the lockdown began. In FY21/22 revenues were beginning to see a turnaround and the first half revenues of FY22/23 are consistent with the prior year. Staff will continue to monitor businesses license revenues.
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Transient Occupancy Tax
The City levies a 12% Transient Occupancy Tax (TOT) on all hotel and motel rooms and other transient rentals within the municipal limits of Sonora. This tax helps to fund City services provided to transitory visitors to Sonora and is shared with Visit Tuolumne County, the official Tuolumne County tourism bureau. The Visitors Bureau will receive approximately $110,000 annually. TOT revenues for the FY22/23 are approximately 5% of General Fund revenues.
Analysis – Total TOT revenues had been resilient during COVID-19 and as the pandemic has begun to resolve there continues to be a rebound. FY22/23 continues to see TOT revenues at prepandemic levels and the first half revenues are similar to the prior year, and higher than originally budgeted. For the second half of FY22/23 TOT estimates have increased requiring a budget adjustment in the amount of $60,000, or 12%.
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Charges for Services
City Service revenue consists primarily of Zoning and Subdivision fees, police and fire department services, street cleaning, debris removal and banner installation fees. Many of these fees and charges are assessed based on outdated recovery formulas, which should reflect approximate costs of providing these regulatory services. A fee update is needed to realign these user fees to the costs to provide the services. Charges for Services was budgeted to be less than 1% of General Fund revenues for FY22/23.
Analysis – First half receipts are trending higher than last year and within range of expectations. No budget changes are needed at this time.
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Licenses and Permits
Licenses and permits consist mainly of Building permits and encroachment permits which are collected by the City to offset administrative costs associated with overseeing the proper permitting aspects of development and City activities. These revenues were budgeted to be approximately
1.2% of General Fund revenues.
Analysis – First half licenses and permit revenue are higher than the previous several years as pentup demand post pandemic and the interest in adding solar to area homes has increased the number of projects. Staff recommends an increase in budgeted revenues by $40,000 to reflect the higher first half result.
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Cannabis Dispensary Revenues
This program was created after voters approved Proposition 64, entitled the ‘Control, Regulate and Tax Adult Use Marijuana Act’ (AUMA), legalizing the adult use and possession of cannabis by persons 21 years of age and older. On January 16, 2018, the Sonora City Council adopted Ordinance 18-848 to regulate the operation of commercial cannabis business within the City of Sonora. Currently the city has two operating dispensaries, with the current ordinance allowing up to three dispensaries. This revenue source was budgeted to be approximately 5% of General Fund revenues and is now the third largest revenue source for the City, with only Sales Tax and Property Tax contributing more.
Analysis – First half revenues have exceeded expectations. Revenues for the first half of FY22/23 are 6% above the original budget. The city also receives sales tax on recreational cannabis sales or approximately $90,000. FY22/23 will mark the first-time cannabis revenues will exceed revenues from Transient Occupancy Tax. There is a staff recommended budget increase of $60,000 to reflect higher public benefit revenues than anticipated for the 6 months ending December 31, 2022. 49 Item 6.
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GENERAL FUND – KEY EXPENDITURE ANALYSIS
The following discussion provies a status of significant General Fund expenditures for the first half of FY22/23, for the date ending December 31, 2022. Staff monitors each expenditure source closely and may recommend certain expenditure adjustments based on actual expenditures or state budget actions.
Salaries and Benefits
Salaries and Benefits are 75% of the General Fund budget. Salaries and Benefits include fulltime employee salaries, elected official and volunteer stipends, temporary/relief employees, overtime, all tax related expenses and benefits, including health and CalPERS retirement.
FY22/23 included negotiated increases for each of the employee bargaining units. Under typical circumstances, it would be expected that Salaries and Benefits would be just under 50% of total budget at the end of the second quarter as cost slowly increase over the course of a fiscal year.
Analysis – First half results for salaries and benefits are trending in line with those in similar periods in prior years, at approximately 48% of budgeted totals. Further analysis of these expenditure details indicates that benefits are trending at approximately 46% of budgeted totals in line with total personnel costs. The cost of health insurance increased 5% in January 2023 and was anticipated and built into the current budget.
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Operating Expenditures
Operating expenditures consist of all General Fund costs to provide services, including supplies, materials, utilities, contracted services and are budgeted at $2.2 million for the fiscal year. The categories of supplies, materials and non-capital equipment, the most controllable expenditure category, is 53% expended as many annual contracts renew in the first half of the year. The balance of the operating expenditures is on budget at 50% expended.
Analysis – First half results are trending similar to the same period in prior years, at approximately 52% of budgeted totals. Utilities are trending within range at 48%. There are a few adjustments that are recommended: Measure Y CDTFA Preparatory Costs of $65,000, Additional contracted coverage in Community Development Department of $25,000, Emergency Contract for Main Drain inspections after the historic winter storms of $50,000, for a total budget increase of $140,000, as described on page 13.
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FY22/23 RECOMMENDED FIRST HALF BUDGET ADJUSTMENTS
Summary of Recommended Budget Adjustments
Revenues:
o Sales Tax is down about 5% from FY21/22 and 1% below budget. o First time budgeting for Measure Y Sales and Use Tax revenues. o Increase in TOT revenues as the post covid travel continues to increase. o Increase in Public Benefit Fees for Cannabis, first time 2 dispensaries are operating. o Building Permits at a five year high, pent-up demand post covid, increase in solar panel installations.
o Interest Yield up 400% since start of Fiscal Year.
o Opera Hall Booking up post COVID.
Expenditures:
o Delete Relief Deputy Clerk Position in Administration. Will fund again in FY23/24. o Police Department Over-time running high as department working through recruitments. o Increased contracted coverage for Community Development. o CDTFA preparatory expense for Measure Y implementation. o Budget for Engineering Services - inspection of City’s main drain after historic storms. o Recommending an additional contribution of $150,000 to the City’s Section 115 Trust as part of a Pension Rate Stabilization Program.
o Recommending contribution to City’s Emergency Reserve. o Recommending contribution to the City’s Capital Replacement Reserve. o Budget to use Vision Sonora funds for Linoberg Project
FUND - DEPARTMENT - ACCOUNT DESCRIPTION BUDGET CHANGE
Revenues:
001 - 4000 - 40210 - Sales and Use Tax (72,000) $
001 - 4000 - 40215 - Sales Tax Measure Y 600,000 $
001 - 4000 - 40220 - Transient Occupancy Tax 60,000 $
001 - 4000 - 41040 - Public Benefit Fee Cannabis 60,000 $ 001 - 2000 - 41250 - Building Permits 40,000 $
001 - 4900 - 47010 - Interest 32,000 $
001 - 8000 - 47510 - Opera Hall 5,000 $
TOTAL NET CHANGE TO REVENUES $ 725,000
Expenditures:
001 - 1200 - 50110 - Relief (20,000) $
001 - 5000 - 50120 - Overtime 55,000 $
001 - 2000 - 53010 - Outside Services 25,000 $
001 - 4900 - 53010 - Outside Svs - CDTFA Measure Y 65,000 $ 001 - 2200 - 53050 - General Engineering 50,000 $
001 - 4900 - 59999 - Transfer Out CEPPT 150,000 $
001 - 4900 - 59999 - Transfer Out Emergency Reserves 200,000 $ 001 - 4900 - 59999 - Transfer Out Capital Replacement Reserve 200,000 $ TOTAL NET CHANGE TO EXPENDITURES $ 725,000
$ -
350 - 8200 - 55060 - Linoberg Project - Blue Zones 17,000 $ $ 17,000
NET CHANGE TO FY22/23 General Fund Budget
NET CHANGE TO FY22/23 Vision Sonora Fund Budget
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FINANCIAL SUMMARIES, PROJECTIONS AND
RECOMMENDATIONS
General Fund
The following table is the Schedule of General Fund Operating Revenues. Vs. Operating Expenditures for the first half of FY22/23, which includes comparison information from the prior year’s first half.
City of Sonora
General Fund
Operating Revenues vs Operating Expenditures
For the Period of December 31, 2022
FY21/22
Actual
FY21/22
Mid-Year
FY21/22
% YTD
FY22/23
Adopted
Budget
FY22/23
Mid-Year
FY22/23
% YTD
Revenues
Sales and Use Tax 3,496,261 1,752,041 50.1% 3,397,100 1,662,290 48.9% Property Tax 913,849 386,390 42.3% 942,000 396,616 42.1% VLF Backfill Property Tax 448,465 224,233 50.0% 475,000 236,646 49.8% Franchise Fees 149,478 44,303 29.6% 155,000 47,977 31.0% Business Licenses 120,719 48,078 39.8% 116,000 46,577 40.2% Transient Occupancy Tax 559,545 277,274 49.6% 490,000 264,419 54.0% Licenses and Permits 133,963 58,744 43.9% 120,850 101,101 83.7% Cannabis Public Benefit Fees 499,977 241,064 48.2% 525,000 294,437 56.1% Intergovernmental 48,900 28,762 58.8% 11,000 - 0.0%
American Rescue Plan (SLEFRP) 581,786 581,786 100.0% 581,786 581,786 100.0% Charges for Services 87,195 39,381 45.2% 74,200 45,840 61.8% Fines and Forfeitures 25,699 6,262 24.4% 25,000 9,820 39.3% Interest 7,636 2,430 31.8% 6,500 18,913 291.0%
Other Sources 90,921 52,330 57.6% 85,450 38,793 45.4%
Total Revenues 3,743,078 7,164,394 52.2% 7,004,886 3,745,215 53.5% Transfers In
Tranfers In 2,453,993 1,134,300 46.2% 2,506,450 1,189,300 47.4% Total Transfers 1,134,300 2,453,993 46.2% 2,506,450 1,189,300 47.4% Total Revenues 4,877,378 9,618,387 50.7% 9,511,336 4,934,515 51.9% Expenditures
Salaries and Benefits 6,635,823 3,223,593 48.6% 7,124,850 3,427,033 48.1% Supplies and Materials 2,142,482 1,008,086 47.1% 1,893,000 998,016 52.7% Utilities 312,966 148,452 47.4% 329,950 157,452 47.7%
Total Expenditures 4,380,131 9,091,271 48.2% 9,347,800 4,582,501 49.0% Transfers Out
Transfers Out 66,428 28,997 43.7% 109,000 79,992 73.4%
Total Transfers 28,997 66,428 43.7% 109,000 79,992 73.4% Total Expenditures 4,409,128 9,157,699 48.1% 9,456,800 4,662,493 49.3% 53 Item 6.
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The groups of financial summaries on the following pages present data by governmental fund type: For purposes of this first half report, we have focused on the Measure I Special Revenue Fund. The fund information starts with a beginning fund balance, adds current year revenues, and subtracts current year expenditures, resulting in an ending fund balance. Adopted budget amounts are provided as a basis for comparison of actuals to date.
Special Revenue Fund: Measure I
Special Revenue Funds account for the proceeds derived from specific revenue sources that are legally restricted or assigned to special purposes. The City’s Special Revenue Funds include the Measure I fund which is the focus of the information provided in this first half report. The Measure I fund was established as a result of a 2004 voter approved ½% increase to sales tax within the City limits. With approval of the ballot measure, the sales tax increase took effect January 1, 2005. The purpose of the initiative was to improve city services for residents, businesses, and visitors to the City of Sonora. Measure I revenues for the first half are trending at 51% of total budgeted revenues and across the three Departments expenditures are programmed to be at 50% of budget. Nearly all Measure I funds collected are now fully expended on ongoing fixed costs.
Police % Fire % Public Works %
Beginning Fund Balance 1,020,760 374,841 541,328
Budgeted Revenues 1,390,480 579,575 349,200
Actual Revenues - First Half 704,141 50.6% 292,890 50.5% 178,081 51.0% Budgeted Expenditures 1,300,000 550,000 325,000
Actual Expenditures - First Half 650,000 50.0% 275,000 50.0% 162,500 50.0% Ending Fund Balance 1,074,901 392,731 556,909
Measure I
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Measure I: Police Department
The Police Department receives 60% of Measure I revenue for the support of the Sonora Police Department for personnel, updating safety equipment and supplies, providing educational funding, replacing expired vehicles, and expanding facilities. FY22/23 first half results are trending consistent with the same period in prior years as illustrated in the chart below.
FY18/19 FY19/20 FY20/21 FY21/22 FY22/23
First Half Actual Revenues 476,118 497,037 487,825 681,859 704,141 Fiscal Year Total Actual Revenues 1,144,325 1,164,639 1,295,455 1,411,325 Fiscal Year Total Budgeted Revenues 1,390,480
First Half - Percent of Total 41.6% 42.7% 37.7% 48.3% 50.6% First Half Actual Expenditures 493,545 515,516 550,000 650,000 650,000 Fiscal Year Total Actual Expenditures 1,058,491 1,041,437 1,100,000 1,300,000 Fiscal Year Total Budgeted Expenditures 1,300,000
First Half - Percent of Total 46.6% 49.5% 50.0% 50.0% 50.0% Police Measure I
Revenues
Expenditures
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Measure I: Fire Department
The Fire Department receives 25% of the Measure I revenue for the support of the Sonora Fire Department for personnel, updating equipment and supplies, and providing educational funding.
FY22/23 1st half revenues are trending consistent with the same period in prior years as illustrated in the chart below. There are no budget recommendations at this time.
FY18/19 FY19/20 FY20/21 FY21/22 FY22/23
First Half Actual Revenues 197,397 199,604 202,561 284,007 292,890 Fiscal Year Total Actual Revenues 474,030 469,959 538,841 587,825 Fiscal Year Total Budgeted Revenues 579,575
First Half - Percent of Total 41.6% 42.5% 37.6% 48.3% 50.5% First Half Actual Expenditures 263,693 270,547 175,000 250,000 275,000 Fiscal Year Total Actual Expenditures 503,750 512,469 350,000 500,000 Fiscal Year Total Budgeted Expenditures 550,000
First Half - Percent of Total 52.3% 52.8% 50.0% 50.0% 50.0% Fire Measure I
Expenditures
Revenues
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Measure I: Public Works
The Public Works Department receives 15% of the Measure I generated revenue for the purpose of personnel, equipment and facility enhancements and infrastructure improvements.
FY22/23 first half revenues are trending consistent with the same period in prior years as illustrated in the chart below.
FY18/19 FY19/20 FY20/21 FY21/22 FY22/23
First Half Actual Revenues 120,179 124,390 123,105 170,742 178,081 Fiscal Year Total Actual Revenues 292,689 290,275 325,516 353,654 Fiscal Year Total Budgeted Revenues 349,200
First Half - Percent of Total 41.1% 42.9% 37.8% 48.3% 51.0% First Half Actual Expenditures 144,673 130,299 162,500 157,500 162,500 Fiscal Year Total Actual Expenditures 254,188 239,023 325,000 315,000 Fiscal Year Total Budgeted Expenditures 325,000
First Half - Percent of Total 56.9% 54.5% 50.0% 50.0% 50.0% Public Works Measure I
Expenditures
Revenues
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DEPARTMENT UPDATES
COMMUNITY DEVELOPMENT
Mid-Year Goals and Accomplishments
Linoberg Project - City Engineer is working on project. Snell Street Project - City Engineer is working on project. Woods Creek Park Per Capita Grant Project - Community Development Director will begin in March.
The Stockton-Washington Transit Project - Construction Contract and Construction Management Contracts have been awarded and construction is to begin on March 1st. State Department of Housing and Community Development (HCD) - has approved the use of the City’s CDBG Program Income for the Fire Department projects and Staff is finalizing the grant contracts with HCD.
ADA/504 Plan Update - Staff will be releasing the RFP in March. Accessory Dwelling Unit - Ordinance was adopted.
Sign Ordinance - Ordinance was adopted.
General Plan Update - Staff is currently reviewing for mandated state updates related to the Housing Element and is working on various amendments to the Zoning Ordinance. Stewart Street Shelter Project - Stewart Street Shelter project will begin in accordance with City’s Strategic Plan goals.
City of Sonora
Mid Year Budget by Department
July 1, 2022 to December 31, 2022
Community Development
Revenues
License and Permits $97,277 $116,000 83.9%
Miscellaneous $630 $1,900 33.2%
Total Revenues $97,907 $117,900 83.0%
Expenditures
Salaries and Benefits $194,960 $385,500 50.6%
Supplies and Materials $135,649 $282,300 48.1%
Utilities $3,865 $9,800 39.4%
Total Expenditures $334,474 $677,600 49.4%
Net Gain (Cost) to General Fund ($236,567) ($559,700)
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POLICE DEPARTMENT
Mid-Year Goals and Accomplishments
Continue to Collaborate with City Administration to Enhance Recruitment and Retention o Peace officer compensation increased – Still experiencing vacancies; Since July 2022, 1 PT Dispatcher has been hired, and 1 Sergeant candidate, 3 Police Officer Candidates, and 1 Community Service Officer in various phases of the hiring process. Continue an Ongoing Effort to Strengthen Employee Development o Since July of 2022, department staff has attended 359 hours of professional training. Work with City Administration to Establish a Fleet Management Plan o 1 new patrol vehicle - 1 used patrol vehicle - 1 new detective vehicle purchased Implement Public Safety Surveillance and ALPR Program o 2 ALPR cameras have been purchased, placed and are operational. Currently creating an interface with DOJ for full access/activation.
Facility Improvements and Security
o Property and Evidence Enhancement – Major reconciliation of inventory and automated log; identified and purged numerous items with dispositions. o Identify Storage Areas – Relocated evidence overflow area Replace Outdated and Unsupported Equipment
o Mobile Data Computers – 4 replacement MDC’s purchased o Tasers and Body Worn Cameras and Storage Upgrade – All field staff are now equipped with the latest generation of Axon body cameras and Taser7 devices. Improve Radio Communications
o Complete New Repeater Site Project – Phase 1 equipment is purchased. o Upgrade Unsupported Portable and Mobile Radios.
o Unsupported Base Unit and Console – Purchased but not yet installed. o Purchase Headsets – Suspended; Current system will not support headsets City of Sonora
Mid Year Budget by Department
July 1, 2022 to December 31, 2022
Police Department
Revenues
Current Year
Actual Total Budget
% Budget
Remaining
Prop. 172 Public Safety $17,215 $34,400 50.0%
Fees and Fines $9,820 $15,000 65.5%
Department Services $15,614 $34,000 45.9%
Grant Revenues $112,063 $116,320 96.3%
Miscellaneous $520 $1,250 41.6%
Transfer In $737,500 $1,475,000 50.0%
Total Revenues $892,732 $1,675,970 53.3%
Expenditures
Salaries and Benefits $1,617,411 $3,489,800 46.3%
Supplies and Materials $260,403 $554,250 47.0%
Utilities $37,765 $74,600 50.6%
Total Expenditures $1,915,579 $4,118,650 46.5%
Net Gain (Cost) to General Fund ($1,022,847) ($2,442,680) 59 Item 6.
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FIRE DEPARTMENT
Mid-Year Goals and Accomplishments
Collaborate with local agencies to support growth and increase efficiencies in fire services. - Discussions with County Fire Chiefs. Tuolumne County Fire Advisory Committee member. - Advised on committee. Collaborate with PD on Homeless task force project. - Participating member Recruit and hire third engineer position. - Hired Full Time Engineer. Procure CDBG funding. – Ordered and placed in service Type 6 engine, new SCBA’s and exhaust removal system (in process).
Dialog with Chicken Ranch Rancheria. – Cooperative fire protection agreement. Host 162nd Annual Firefighter Ball. – Completed on November 5, 2022.
City of Sonora
Mid Year Budget by Department
July 1, 2022 to December 31, 2022
Fire Department
Revenues
Department Services $14,150 $22,000 64.3%
Miscellaneous $20 $50 40.0%
Transfer In $275,000 $550,000 50.0%
Total Revenues $289,170 $572,050 50.5%
Expenditures
Salaries and Benefits $714,091 $1,431,600 49.9%
Supplies and Materials $98,503 $165,200 59.6%
Utilities $18,793 $39,000 48.2%
Total Expenditures $831,387 $1,635,800 50.8%
Net Gain (Cost) to General Fund ($542,217) ($1,063,750) 60 Item 6.
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PUBLIC WORKS DEPARTMENT
Mid-Year Goals and Accomplishments
Crosswalk and stop bar striping - Staff continued replacing and painting crosswalks and stop bar striping with Thermo-Plastic in various locations during the summer. Additional locations will be done later in the Spring.
Street Sign Replacement Project - Staff continued with replacing street signs in various locations during the summer. Additional locations will be done later in the Spring. ADA/Trip Hazard Improvement Program - Staff conducted ADA/Trip Hazard evaluation and repairs, including curb repairs, along Washington Street. Potholing and Street Repairs - Due to the recent storms potholing and street repairs will consume a lot of staff time starting in early Spring.
Terzich Parking Structure - Staff upgraded the lighting fixtures within the Terzich Parking Structure with LED lights.
Vegetation Removal Project - Staff has conducted vegetation removal continuously during the year.
Mountain Shadow Cemetery - On-going maintenance and repairs have occurred in the Mountain Shadow Cemetery.
City of Sonora
Mid Year Budget by Department
July 1, 2022 to December 31, 2022
Public Works
Revenues
Department Services $19,729 $43,800 45.0%
Transfer In $251,500 $460,000 54.7%
Total Revenues $271,229 $503,800 53.8%
Expenditures
Salaries and Benefits $342,450 $736,700 46.5%
Supplies and Materials $107,663 $218,300 49.3%
Utilities $79,374 $173,100 45.9%
Total Expenditures $529,487 $1,128,100 46.9%
Net Gain (Cost) to General Fund ($258,258) ($624,300)
61 Item 6.
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CONCLUSION
The financial results for the first half of Fiscal Year 22/23 are based on the most current financial information and economic assumptions available. As this report shows, revenues have been better than anticipated, as the original budget was developed as COVID-19 was still having an influence and the spike in the consumer price index (CPI) was just beginning to affect the economy. Even with relatively strong revenues, without the one-time resources of the Coronavirus State and Local Fiscal Recovery Funds (SLFRF) the City received in FY21/22 and FY22/23 the City’s General Fund would have been operating in the red for the first six months of the year, with a structural deficit of over $309,000. This includes a status-quo budget with no capital improvements, fails to address deferred maintenance, and continues the City’s history of critically underfunded departments. This demonstrates how important it was for the City to have passed Measure Y to help address this funding shortfall going forward. Measure Y will become effective April 1, 2023 and the City will begin to benefit in the third quarter of FY22/23.
On page 13 are the budget adjustments that are needed for the city to complete the fiscal year and to continue to navigate the economic uncertainty ahead.
As the fiscal year progresses, staff will continue to closely monitor revenue and expenditure activity and work to identify opportunities to enhance revenue to support current and future operating capital needs.
62 Item 6.
CITY COUNCIL AGENDA REPORT
MEETING DATE: February 6, 2023
TO: City Council Members
FROM: Aimee R. New, Fire Chief
SUBJECT: Resolution 02-06-2023B, Approval to submit application for exemption to Executive Officer of the Tuolumne County Local Area Formation Commission
RECOMMENDATION
Staff recommends approval of resolution 02-06-2023B to submit an application to the Executive Officer of the Tuolumne County Local Area Formation Commission for exemption under Government Code Section 56134 for out-of-area fire contract services.
BACKGROUND
California Government Code Section 56133-34 provides a district or city may provide new or extended fire protection and emergency services by contract or agreement only if it first requests and receives written approval by the local agency formation commission in the affected county.
Government Code Section 56134 provides for an exemption from Local Agency Formation Commission (LAFCO) consideration of an out-of-agency service agreement where the new or extended services to be added does not transfer the responsibility for providing services in more than 25-percent of the area within the jurisdictional boundaries of any public agency affected by the contract agreement, and where it does not change the employment status of more than 25-percent of the employees of any public agency affected by the contract or agreement
DISCUSSION
The proposed extended fire services outside of the City of Sonora’s current jurisdictional boundaries to the Chicken Ranch Tribe of Me-Wuk Indians meets the exemptions provided in Government Code Section 56134.
The proposed service area is approximately 51 acres of Tribal Trust lands, not governed by LAFCO.
Any agreement for response outside of the Tribal Trust lands would be a separate agreement with all fire agencies in Tuolumne County through an automatic aid agreement, which is not governed by LAFCO.
FISCAL IMPACT
No effect to the General Fund.
63 Item 7.
RESOLUTION 02-06-2023-B
____ _________________________________________________________
A RESOLUTION OF THE CITY COUNCIL OF SONORA PROPOSING EXTENDED FIRE SERVICE BY CONTRACT OUSIDE THE CITY OF SONORA’S CURRENT JURISDICTIONAL BOUNDARIES
TO THE CHICKEN RANCH TRIBE OF ME-WUK INDIANS, AS REQUIRED BY THE CALIFORNIA GOVERNMENT CODE, 56133-34.
WHEREAS, California Government Code Section 56133-34 provides a district or city may provide new or extended fire protection and emergency services by contract or agreement only if it first requests and receives written approval by the local agency formation commission in the affected county; and the City Council to pass by resolution a proposal to provide new or extended services by contract or agreement outside its jurisdictional boundary; and
WHEREAS, Government Code Section 56134 provides for an exemption from Local Agency Formation Commission (LAFCO) consideration of an out-of-agency service agreement where the new or extended services to be added does not transfer the responsibility for providing services in more than 25-percent of the area within the jurisdictional boundaries of any public agency affected by the contract agreement, and where it does not change the employment status of more than 25-percent of the employees of any public agency affected by the contract or agreement; and WHEREAS, the Tribal General Council, Tribal Council and the City of Sonora City Council approved a proposed cooperative fire program fire reimbursement agreement with the Chicken Ranch Tribe of MeWuk Indians; and WHEREAS, the City Council of the City of Sonora does hereby find that:
1. The proposed extended fire services outside of the City of Sonora’s current jurisdictional boundaries to the Chicken Ranch Tribe of Me-Wuk Indians meets the exemptions provided in Government Code Section 56134; and
2. The proposed service area is approximately 51 acres of Tribal Trust lands, not governed by LAFCO; and
3. Any agreement for response outside of the Tribal Trust lands would be a separate agreement with all fire agencies in Tuolumne County through an automatic aid agreement, which is not governed by LAFCO;
NOW, THEREFORE, IT IS HEREBY RESOLVED by the City Council of the City of Sonora as follows:
1. That the City Council does hereby give direction to the Fire Chief and City Administrator to submit an application for exemption to the Executive Officer of the Tuolumne County Local Agency Formation Commission; and
64 Item 7.
PASSED AND ADOPTED as a Resolution of the City Council of the City of Sonora, California, at a regular meeting of said City Council held on February 06, 2023, by the following votes:
AYES:
NOES:
ABSTAIN:
ABSENT:
Signed and Dated:
_______________________________
Mark Plummer,
Mayor of the City of Sonora
ATTEST: _________________________
Tracy Skelly, City Clerk
65 Item 7.