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HomeMy WebLinkAboutE-1 - Minutes Special Meeting, May 31, 2022 DraftCITY OF AZUSA MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL TUESDAY, MAY 31, 2022 – 6:30 P.M. The City Council of the City of Azusa, met in Special session at the above date following the Utility Board Meeting at Azusa Light & Water located at 729 N. Azusa Ave, Azusa, CA 91702. Mayor Gonzales called the meeting to order at 7:26 P.M. ROLL CALL: Roll call was taken by City Clerk Cornejo. PRESENT: COUNCILMEMBERS: GONZALES, MENDEZ, ALVAREZ, AVILA, BECKWITH (via teleconference) ABSENT: COUNCILMEMBERS: NONE ALSO PRESENT Elected Officials: City Clerk Cornejo. Staff Members: City Manager Gonzalez, Deputy City Manager DeAnda-Scaia, City Attorney Martinez, Director of Administrative Services Johnson, Director of Economic and Community Development Marquez, Director of Public Works/City Engineer Delgadillo, Director of Information Technology and Library Services Graf, Director of Utilities Robledo, Director of Community Resources Carpenter, Chief of Police Wenrick, Budget Administrator Lam, and Chief Deputy City Clerk Garcia. PUBLIC COMMENT None. SCHEDULED ITEMS FISCAL YEAR 2022/23 CITY OF AZUSA, CITY OF AZUSA PUBLIC FINANCING AUTHORITY, AND SUCCESSOR AGENCY PRELIMINARY OPERATING AND CAPITAL IMPROVEMENT PLAN BUDGET REVIEW City Manager Gonzalez introduced the Item. Director of Administrative Services Johnson provided an overview of the budget strategy and development, and presented the economic outlook and potential significant budget impacts. The FY 2022/23 General Fund highlights include a proposed budget of $68.5M with a projected $9M surplus; $1.9M of capital outlay and CIP requests are being proposed; $13M for infrastructure improvements are considered; and 500k for Azusa small business support grants are also included. The FY 2022/23 General Fund Proposed Revenues includes an anticipated $58.5M in revenues, an anticipated 5% increase over the 2021-22 budget; an anticipated increase in property tax due to the rise in home values; an increase in sales tax revenues due to lack of supply and, subsequently, an increase in the cost of things. The FY 2022/23 General Fund Proposed Expenditures includes an anticipated 32% increase, mostly due to upcoming Capital Improvement Projects; the budget reflects increased costs for each department related to current MOUs; the City’s operating expenditures generally remain the same. Director of Administrative Services Johnson provided a review of the Reserve Policy and recommended Council re-affirm the current Reserve funding levels; the budget includes $13.7M for Budget Stabilization and Catastrophic Event, $2M Capital and Infrastructure Replacement, $2.5M for Insurance, and $2M for Retiree Benefits; the anticipated ending reserve balance for Fiscal Year 2022/23 is approximately $33.8M; the projected undesignated reserves are $13.5M, which show that the City maintains strong undesignated Reserves to address future needs. The recommended policy also sets aside 50% of the City’s current reserves and over 30% of Reserves are being reinvested in facility improvements. The proposed FY 2023/22 Citywide Budget is approximately $199M; proposed Citywide Budget Revenues and Transfers In are $175M; anticipated Citywide Proposed Revenues is $175M; the Citywide FTE Summary includes a proposed 4.70 FTE net increase; Director of Administrative Services Johnson also proposed adding 10 full time employees due to increased difficulty of retaining part-time employees and attracting a qualified candidate pool. PAGE ONE – 5/31/2022 CONSENT ITEM E-1 APPROVED CITY COUNCIL 9/19/2022 An overview of the Citywide Five-Year Capital Improvement Program (CIP) was provided; the FY 2022/23 CIP proposed budget is $26.3M; major FY 2022/2023 projects were highlighted and a breakdown of the funding was provided. City Manager Gonzalez briefly introduced two Personnel Requests for the Administration Department which includes a full time Senior Management Analyst position and a salary adjustment for the Chief Deputy City Clerk, and he discussed the cost impacts of the requests. Deputy City Manager DeAnda-Scaia provided budget highlights for the Administration Department which includes $85K for special legal services, $100K for General Municipal Election Expenses, and $500K for the Azusa Small Business Support Grant Program. Key initiatives for FY 2022/23 include continuing to lead the City forward in overcoming the impacts associated with the COVID-19 pandemic, addressing long-term financial sustainability of the City, administering the November General Municipal Election, and fostering effective partnerships between the City, community organizations, and local residents though public outreach and engagement. In response to questions posed by Council, City Manager Gonzalez discussed the necessity of the full time Senior Management Analyst. The position would help increase efficiency in the department by maintaining responsibility for tasks such as homelessness, special projects, and any other department related duties. Director of Administrative Services Johnson presented an overview of the Administrative Services budget and Personnel Requests which includes the addition of a full time Human Resources Administrative Assistant and salary increases of $65K within the Finance and Human Resources divisions. Key FY 22/23 initiatives include updating Finance and HR/Risk Management Policies, optimizing technology to create efficiencies, expand Citywide safety training programs, and focusing on leadership development and opportunities for workplace stability. Director of Community Resources Carpenter introduced two Personnel Requests for salary adjustments and noted that the department has finally hired on a Family Services Manager. She provided an overview of the Community Resources Department Budget and highlights such as the positive impacts of restructuring which included the expected reopening of senior nutrition services, the expansion of family services for seniors and youth, and the expansion of teen programs and services. In addition, the Department received the John Todd Award for Successful Partnerships as a result of collaborating and creating successful external relationships. Library & Information Technology Services Director Graf presented Personnel Requests to make salary adjustments for two positions and to add a full time Administrative Technician to the Information Technology Department. Key Library department initiatives include facilitating and overseeing the creation of an Outdoor Learning Center, promoting digital equity through the California State Library Fund, and connecting residents to vital social services. Key Information Technology department initiatives include evaluating migration to Office 365 and Outlook, upgrading firewall, and completing implementation of Govsense and Mobile Banking and Code Enforcement software solution website refresh. In response to questions posed by the Council, Library & Information Technology Services Director Graf discussed how the City will work with City of Hope and utilize Measure H grants establish temporary housing for homeless individuals. Economic and Community Development Director Marquez presented Personnel Requests to add a full time Economic Development and Housing Coordinator and two salary adjustments. He also provided operating highlights of the Economic & Community Development Budget which include an increase in Building by $174K and a decrease in Planning by $472K due to a reduction in large scale initiatives. Key Department initiatives for FY 22/23 include working on Downtown Azusa in terms of streetscape plans, catalyst projects, and attracting businesses, creating a general plan and city branding for the next 20 years, and housing element implementation. In response to questions posed by Council, City Manager Gonzalez addressed that adding a full time position in the Economic and Community Development department would be a cost saving measure versus hiring a contracted consultant. Chief of Police Wenrick presented Public Safety Personnel Requests which include a request for three full-time positions – a Police Civilian Investigator, a Community Services Officer, and a Body Worn Camera & Digital Evidence Technician. Budget highlights include a decrease in the LA County Fire Services contract; non-personnel budget increases for equipment; a decrease for police IT costs the bulk of which are related to fleet; noteworthy requests include $229K for 4 police vehicles, $181.5K for police firing range upgrade, $68K for 2 police traffic division motorcycles, a $16K police handgun upgrade and replacement, and $71K for police tactical vests replacement. In response to questions posed by the Council, Chief of Police Wenrick provided information regarding the upgrades to the police firing range and its potential lifespan if the handguns were to be upgraded as well. Director of Public Works/City Engineer Delgadillo presented Personnel Requests which includes adding two full time positions – Facilities Maintenance Worker and Senior Engineer, and adding one part time Engineering Technician position. Budget highlights include an overall General Fund budget increase of $83K primarily due to increased costs of landscaping, irrigation, and tree maintenance contract services; significant Capital Outlay requesting $410K; notable Capital Improvement Projects requesting $4.5M; briefly discussed some notable projects the City will be working on. In response to concerns posed by the Council, Director of Public Works/City Engineer Delgadillo explained the plans for the improvements on Arrow Hwy and possibly incorporating reflectors or solar lights in the raised medians for driver safety; also stated Azusa Light and Water is looking for alternatives to bring better lighting along the highway at night. PAGE TWO – 5/31/2022 Director of Utilities Robledo presented the personnel requests for the Light & Water Department which include an adjustment to the salary range for the Assistant General Manager – Customer Service, Assistant General Manager – Water, Utilities Administrative and Financial Services Manager, and the Environmental Programs Manager, the reclassification of the Administrative Technician to Senior Administrative Technician and the reclassification of the Utility Collections Specialist to Utility Billing Specialist. Costs for Light & Water Department Personnel Requests will be funded using enterprise funds. Budget highlights include a $1.67M decrease in water utility operating expenses and a $4M increase in electric utility operating expenses. Capital outlay requests includes a $50K electric utility truck and a $496K Line Truck; Capital Improvement Projects include multiple wat end electric systems upgrade, a well rehabilitation program, a Light & Water Building exterior paint and parking lot resurfacing, and energy efficient (LED) streetlight deployment. Director of Administrative Services Johnson concluded the FY 22/23 budget presentation stating that the overall budget is balanced, the reserves are strong, and the budget reflects the City’s commitment to its residents and businesses. In response to questions posed by Council, Director of Administrative Services Johnson clarified that the proposed budget numbers include salary adjustments, personnel requests, capital outlays, and Capital Improvement Projects; the budget surplus of $9M includes the $6M the City will receive in ARPA funds in July. City Manager Gonzalez discussed salary study the City performed in 2016. Due to frequent changes in staffing and the economic market, the City is doing salary adjustments to retain and attract employees. In response to questions posed by Council, City Manager Gonzalez discussed why the City’s reserved funds are 25%; these reserved funds would be able to cover 3 months’ worth of operating expenses in the event of an emergency; the City will work towards increasing the amount in reserved funds each year. Taking direction from Council, staff will bring back a budget that includes a 30% reserved funds instead of 25% and change the amount of undesignated funds from $13.5M to $11.5M. Council commended Staff for their hard work in preparing the proposed budget. The final budget will be presented for adoption on June 20, 2022. ADJOURNMENT The meeting was adjourned by consensus of the City Council. TIME OF ADJOURNMENT: 10:39 P.M. _______________________________________ CITY CLERK PAGE THREE – 5/31/2022