Budget and Personnel Committee

_____________________________________________________________________________________ Budget and Personnel Committee Meeting Minutes February 22. 21 Budget Meeting MINUTES BUDGET AND PERSONNEL COMMITTEE Budget Meeting - Wednesday, February 23, 2022 2:00 PM As allowed per Assembly Bill (AB361), this meeting was conducted in person and by teleconference AGENDA ITEM 1, CALL TO ORDER Committee Chair Carbone called the meeting to order at 2:06 P.M. AGENDA ITEM 2, ROLL CALL Members Present: Committee Member Kim Cruz Committee Chair Mary Ann Carbone Staff Present: Acting City Manager Vibeke Norgaard City Clerk Connie Horca Finance Specialist Devon Lazzarino AGENDA ITEM 3, COMMUNICATIONS 2:07 P.M. Chair Carbone opened the floor for public comment and seeing none, closed the floor to public comment. AGENDA ITEM 4, ORDER OF BUSINESS 4a. Approval of December 2, 2022 Budget/Personnel Committee Meeting Minutes There was no discussion regarding the December 2, 2022 Budget/Personnel Committee Meeting Minutes. Motion to approve the December 2, 2022 Budget/Personnel Committee meeting minutes was made by Committee Member Cruz, seconded by Committee Member Carbone. There was consensus of the Committee to approve the minutes. 4b. Consideration and Discussion of Amendment #1 to the Fiscal Year 2021-2022 Budget Finance Specialist Devon Lazzarino reported that the increase in revenues for the fiscal year budget amendment #1 of $839, 372 reflected HdL’s

_____________________________________________________________________________________ Budget and Personnel Committee Meeting Minutes February 22. 21 Budget Meeting analysis for increased sales and transaction taxes, the addition of capital outlay projects to include the purchase of 2 police vehicles, purchase of a new street sweeper, and other items on the CIP list. The increase in expenses for the budget amendment totaled $838,958 for an extra police vehicle, street sweeper rehabilitation, hiring of a new police officer to replace a retired officer position, and various city projects. Committee Member Cruz received clarification regarding the new police hire, and approval for the purchase of the second police vehicle. Acting City Manager Norgaard explained the details of the recent street sweeper purchase that was bought at an auction, the cost to refurbish it due to mechanical issues, and the pending sale of the current street sweeper. The budget amendment reflects the additional cost for repairs. Chair Carbone stressed the importance of ensuring that items procured should be operable and in good condition. In response to Committee Member Cruz’s inquiry regarding the proposed bike patrol, Acting City Manager Norgaard reported that no action was taken. Acting City Manager Norgaard mentioned that expenses for the we.mural festival would be allocated between two fiscal years to include a $25,000 for fiscal year 21-22, and $50,000 for the proposed fiscal year 22-23 budget. A contract will be going to the City Council at their next meeting for consideration and approval. Ms. Lazzarino indicated that all changes to amendment #1 of the fiscal year 21-22 budget is highlighted in bold. Committee Member Cruz questioned whether staff is adhering to the reduction of overtime in the police department, and that it is something to constantly be aware of. Chair Carbone noted that the public safety department reflects $3.4 million on the city’s budget, and inquired about city contracts. Motion to approve Amendment #1 to the Fiscal Year 21-22 budget and to bring to the Council for consideration was made by Committee Member Cruz, seconded by Committee Member Carbone. There was consensus of the Budget/Personnel Committee to approve the motion. AGENDA ITEM 5, ADJOURNMENT Chair Carbone adjourned the meeting at 2:28 p.m. to the next Budget/Personnel Committee meeting to be announced. _____________________________ Connie Horca, Committee Secretary

BUDGET MEETING BUDGET AND PERSONNEL COMMITTEE WEDNESDAY, FEBRUARY 23, 2022 2:00 PM 1

1. CALL TO ORDER 2. ROLL CALL 3. COMMUNICATIONS Members of the Public may address the Budget/Personnel Committee on matters not appearing on the Budget/Personnel Committee Agenda at this time for up to three minutes. In order that the Budget/Personnel Committee Secretary may later identity the speaker in the minutes of the meeting, it is helpful if the speakers state their names. Public comments regarding items on the scheduled agenda will be heard at the time the item is AGENDA BUDGET AND PERSONNEL COMMITTEE Budget Meeting - Wednesday, February 23, 2022 2:00 PM THIS MEETING WILL BE HELD VIRTUALLY AND IS COMPLIANT WITH ASSEMBLY BILL (“AB”) 361, SIGNED INTO LAW ON SEPTEMBER 16, 2021, WHICH AMENDS GOVERNMENT CODE SECTION 54953 TO PROVIDE AUTHORITY FOR PUBLIC AGENCIES TO HOLD VIRTUAL MEETINGS DURING A PROCLAIMED STATE OF EMERGENCY AND REMAIN IN COMPLIANCE WITH THE BROWN ACT (GOV. CODE §§ 54950 ET SEQ.). TO PARTICIPATE IN THE ZOOM BUDGET/PERSONNEL COMMITTEE MEETING LIVE: https://us02web.zoom.us/j/4614728829 Meeting ID: 461 472 8829 To participate telephonically by calling the number below: (669) 900-6833 Meeting ID: 461 472 8829# If prompted to enter a participant ID, press # How to submit written Public Comments: If any member of the public would like to provide written comments at the meeting, please do as set forth below. Written: All comments received before 8:00 am the day of the meeting will be posted on the City’s website as “Correspondence” under the relevant agenda item and provided to the City Council members at the meeting. Please email your comments to: connie@sandcityca.org. Read Aloud During the Meeting: Email your comments to connie@sandcityca.org when the Mayor opens the public comment period for the relevant agenda item; please indicate the agenda item and title in your email subject line. If you want your comment read aloud, prominently write “Read Aloud at Meeting” at the top of the email and your comments will be read into the record (not to exceed three minutes at staff’s cadence). DURING EACH MEETING, members of the public may participate by calling and speaking live during the designated time(s), subject to time limits that may be imposed pursuant to the Brown Act at the number provided above. 2

being considered by the Budget/Personnel Committee. 4. ORDER OF BUSINESS 4a. Approval of December 2, 2022 Budget/Personnel Committee Meeting Minutes 12.2.21 Budget.Personnel Committee Minutes.pdf 4b. Consideration and Discussion of Amendment #1 to the Fiscal Year 2021-2022 Budget Staff Memo Budget Amendment #1 for Fiscal Year 2021-2022.pdf 5. ADJOURNMENT The current agenda is available in PDF format on our website at: www.sandcity.org If you have a request for a disability-related modification or accommodation, including auxiliary aids or services, which will allow you to participate in a Sand City public meeting, please call the City Clerk at (831) 394-3054 extension 220, or give your written request to the City Clerk at 1 Pendergrass Way, Sand City, CA 93955 at least 48 hours prior to the scheduled meeting to allow the City Clerk time to arrange for the requested modification or accommodation. 3

BUDGET MEETING BUDGET AND PERSONNEL COMMITTEE WEDNESDAY, FEBRUARY 23, 2022 2:00 PM 1

1. CALL TO ORDER 2. ROLL CALL 3. COMMUNICATIONS Members of the Public may address the Budget/Personnel Committee on matters not appearing on the Budget/Personnel Committee Agenda at this time for up to three minutes. In order that the Budget/Personnel Committee Secretary may later identity the speaker in the minutes of the meeting, it is helpful if the speakers state their names. Public comments regarding items on the scheduled agenda will be heard at the time the item is AGENDA BUDGET AND PERSONNEL COMMITTEE Budget Meeting - Wednesday, February 23, 2022 2:00 PM THIS MEETING WILL BE HELD VIRTUALLY AND IS COMPLIANT WITH ASSEMBLY BILL (“AB”) 361, SIGNED INTO LAW ON SEPTEMBER 16, 2021, WHICH AMENDS GOVERNMENT CODE SECTION 54953 TO PROVIDE AUTHORITY FOR PUBLIC AGENCIES TO HOLD VIRTUAL MEETINGS DURING A PROCLAIMED STATE OF EMERGENCY AND REMAIN IN COMPLIANCE WITH THE BROWN ACT (GOV. CODE §§ 54950 ET SEQ.). TO PARTICIPATE IN THE ZOOM BUDGET/PERSONNEL COMMITTEE MEETING LIVE: https://us02web.zoom.us/j/4614728829 Meeting ID: 461 472 8829 To participate telephonically by calling the number below: (669) 900-6833 Meeting ID: 461 472 8829# If prompted to enter a participant ID, press # How to submit written Public Comments: If any member of the public would like to provide written comments at the meeting, please do as set forth below. Written: All comments received before 8:00 am the day of the meeting will be posted on the City’s website as “Correspondence” under the relevant agenda item and provided to the City Council members at the meeting. Please email your comments to: connie@sandcityca.org. Read Aloud During the Meeting: Email your comments to connie@sandcityca.org when the Mayor opens the public comment period for the relevant agenda item; please indicate the agenda item and title in your email subject line. If you want your comment read aloud, prominently write “Read Aloud at Meeting” at the top of the email and your comments will be read into the record (not to exceed three minutes at staff’s cadence). DURING EACH MEETING, members of the public may participate by calling and speaking live during the designated time(s), subject to time limits that may be imposed pursuant to the Brown Act at the number provided above. 2

being considered by the Budget/Personnel Committee. 4. ORDER OF BUSINESS 4a. Approval of December 2, 2022 Budget/Personnel Committee Meeting Minutes 12.2.21 Budget.Personnel Committee Minutes.pdf 4b. Consideration and Discussion of Amendment #1 to the Fiscal Year 2021-2022 Budget Staff Memo Budget Amendment #1 for Fiscal Year 2021-2022.pdf 5. ADJOURNMENT The current agenda is available in PDF format on our website at: www.sandcity.org If you have a request for a disability-related modification or accommodation, including auxiliary aids or services, which will allow you to participate in a Sand City public meeting, please call the City Clerk at (831) 394-3054 extension 220, or give your written request to the City Clerk at 1 Pendergrass Way, Sand City, CA 93955 at least 48 hours prior to the scheduled meeting to allow the City Clerk time to arrange for the requested modification or accommodation. 3

AGENDA ITEM 4a. Approval of December 2, 2022 Budget/Personnel Committee Meeting Minutes 4

_____________________________________________________________________________________________ Budget/Personnel Committee Meeting Minutes December 2, 2021 MINUTES BUDGET AND PERSONNEL COMMITTEE Budget Meeting - Thursday, December 2, 2021 10:00 AM As allowed per Assembly Bill (AB361), this meeting was conducted in person and by teleconference AGENDA ITEM 1, CALL TO ORDER Chair Carbone called the meeting to order at 10:02 a.m. AGENDA ITEM 2, ROLL CALL Members Present: Committee Member Mary Ann Carbone Committee Member Kim Cruz Staff Present: Acting City Manager Vibeke Norgaard City Clerk/Committee Secretary Connie Horca Police Chief Brain Ferrante Finance Specialist Devon Lazzarino Guest: Mike Nolan, Hayashi & Wayland Maira Reid, Hayashi & Wayland Therese Courtney (virtual attendance) AGENDA ITEM 3, COMMUNICATIONS 10:05 a.m. Chair Carbone opened the floor for public comment and seeing none, closed the floor to public comment. AGENDA ITEM 4, ORDER OF BUSINESS 4a. Approval of Sand City Budget/Personnel Committee Meeting Minutes, November 9, 2021 Motion to approve the November 9, 2021 Budget/Personnel Committee meeting minutes was made by Committee Member Cruz, seconded by Committee Member Carbone. Roll call vote AYES: Committee Members Carbone, Cruz. NOES: None. ABSENT: None. ABSTAIN: None. Motion carried. 4b. Review of the Fiscal Year 2020/2021 Draft Audit Mr. Mike Nolan from Hayashi and Wayland presented the draft audit and financial statements for fiscal year ending June 30, 2021. He noted that the audit went smoothly, that no significant issues or difficulties arising from the audit were discussed and that the audit provided a clean result. The financial statements referred to present fairly, in all material respects, 5

_____________________________________________________________________________________________ Budget/Personnel Committee Meeting Minutes December 2, 2021 the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Sand City and the respective changes in financial position for the year then ended in accordance with accounting principles, as of June 30, 2021. Mr. Nolan addressed Committee Member Cruz's concern regarding the follow-up of any small deficiencies that were noted in the previous years, and confirmed that they have been corrected. Committee Member Carbone received clarification from Therese Courtney of Hayashi & Wayland regarding the recognition of the Successor Agency payment that was placed into revenues, and also received information regarding the reporting of pension liability as related to GASB 97 that would occur in 2022. Maira Reid from Hayashi & Wayland, reported on the summary of net position with an increase of $1.2 million form the precious fiscal year, the City's net investment assets, and noncurrent receivables. Long-term liabilities increased due to an increase in the pension liability of $392,000 and compensated absences of $149,000 for the police department. A decrease of $576,00 in expenditures occurred due to COVID-19 and budgeted revenues increased by $32,420. There was Committee discussion regarding the TAMC Measure X reporting, IRWMP, funds spent for City Hall remodel, and actions taken. 10:40 a.m. Chair Carbone opened the floor for public comment, and seeing none, closed to public comment. Ms. Reid concluded that it was a pleasure working with Ms. Lazzarino and staff. On a motion by Committee Member Cruz, and seconded by Committee Member Carbone, the draft audit was unanimously approved with a final audit to be brought for Council consideration at the December 21, 2021 meeting. 4c. Consideration of Police Fleet Maintenance Police Chief Ferrante reported on the current status of the department’s vehicles, the CIP program that included a five-year plan for the replacement of the vehicles. The current fiscal year has a budget for one vehicle and is requesting that a second vehicle be purchased to remain in line with the CIP program. The purchase of the second vehicle if approved by the budget committee can be included in the amended budget for the fiscal year. There was discussion regarding the Crown Victoria, resale of inventory, and replacement of the unmarked vehicle. 10:47 a.m. Chair Carbone opened the floor for public comment, and seeing none, closed to public comment. 6

_____________________________________________________________________________________________ Budget/Personnel Committee Meeting Minutes December 2, 2021 Motion to approve the purchase of a second vehicle was made by Committee Member Cruz, seconded by Committee Member Carbone. Roll call vote AYES: Committee Members Carbone, Cruz. NOES: None. ABSENT: None. ABSTAIN: None. Motion carried. 4d. Consideration of Bicycle Patrol Funding Chief Ferrante presented the staff report and summarized the costs for a bicycle patrol program. The cost would include an e-bike, uniform, training and per diem for 1 officer at approximately $8,000. There was Committee discussion regarding the value to Sand City by establishing a bicycle patrol program, staffing, purchase of a bike rack for the police vehicle, liability, and delaying this program to a future date. 10:58 a.m. Chair Carbone opened the floor for public comment, and seeing none, closed to public comment. There was no action taken by the Budget/Personnel Committee at this time and the item will be brought back for Committee consideration at a future meeting. Chair Carbone announced that the closed session item will be continued to December 3, 2021 at 10:30 am. due to time constraints. AGENDA ITEM 5, CLOSED SESSION 5a. Budget/Personnel Committee to adjourn to Closed Session regarding: 1) Closed session pursuant to Cal. Gov Code § 54957.6 (Conference with Labor Negotiator): Agency designated representatives: City Attorney, Vibeke Norgaard Unrepresented employee: City Clerk 2) Closed session pursuant to Cal. Gov Code § 54957.6 (Conference with Labor Negotiator): Agency designated representatives: City Attorney Vibeke Norgaard Unrepresented employee: Public Works Foreman 3) Closed session pursuant to Cal. Gov Code § 54957.6 (Conference with Labor Negotiator): Agency designated representatives: City Attorney Vibeke Norgaard Unrepresented employee: Finance Specialist 4) Closed Session pursuant to Cal. Gov. Code § 54957.6 Position: City Manager AGENDA ITEM 6, ADJOURNMENT 7

_____________________________________________________________________________________________ Budget/Personnel Committee Meeting Minutes December 2, 2021 There was consensus of the Budget/Personnel Committee to adjourn the meeting at 10:59 a.m. to the continued Budget/Personnel Committee meeting on Friday, December 3, 2021 at 10:30 a.m. _______________________________ Connie Horca, City Clerk 8

AGENDA ITEM 4b. Consideration and Discussion of Amendment #1 to the Fiscal Year 2021- 2022 Budget 9

MEMO To: Budget and Personnel Committee Members From: Devon Lazzarino, Finance/HR Specialist Date: February 16, 2022 Re: Budget Amendment #1 Fiscal Year 2021-2022 Discussion: The Proposed Budget Amendment #1 for fiscal year 2021-2022 is based on a larger increase of projected sales tax revenues than expected. The City continues to recover nicely from pandemic related revenue losses. The enclosed Sales Tax Update from HdL shows that Sand City’s third quarter 2021 sales tax increased by 8.3% compared to third quarter 2020, and Measure J increased by 5.4% for the same time period. Fiscal Impact: The increase in revenues for Budget Amendment #1 is $839,372, which reflects the HdL analysis for increased sales and transaction taxes, an increase in City business licenses (new businesses), the Cal-Am reimbursement of the Desal new wells, and the DBO Edgewater habitat endowment. Because of the increase in revenues, staff has added capital outlay/projects for fiscal year 2021-2022 that have been on the Council approved CIP list. These include 2 new vehicles for the Police Department (up from one in the adopted budget), a storage container unit for Police records, improvements to the Police Department lobby area, rehabilitation for the street sweeper purchased in 2020, a new dump truck for Public Works (ordered, but not yet received), completing the City Hall improvements (windows and electrical), completing the Art Park improvements, and the Pendergrass Way project. It is our goal to have these items completed by June 30, 2022. The increase in expenses for Budget Amendment #1 is $838,958, which reflects increases in the City’s liability premium (per MBASIA), employee cash outs, one new police hire to replace a retired officer, the reinstatement of City events (Xmas and BBQ), City projects (West Bay Observation Platform, Calabrese Park, Pendergrass Way, and the Art Park), an extra police vehicle, and street sweeper rehabilitation. 10

2 Recommendation: Staff recommends that the Budget and Personnel Committee approve budget amendment #1, and authorize staff to forward to the City Council for consideration. 11

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