City Council/Successor Agency/Public Finance Authority

AGENDA ITEM NO. 5. – A. CITY OF AVENAL “Pistachio Capital of the World®” REGULAR CITY COUNCIL/SUCCESSOR AGENCY/PFA MEETING JUNE 8, 2023; 5:15 P.M. AVENAL THEATER & EVENT CENTER, 233 E. KINGS ST., AVENAL, CA VIA ZOOM VIDEO/WEB CONFERENCING: Web Link: bit.ly/AvenalCouncil or use https://us02web.zoom.us/j/87243440488 Or by calling +1 669 900 6833 and use meeting ID 872 4344 0488 to join. MINUTES CALL TO ORDER & PLEDGE OF ALLEGIANCE: by Mayor Preciado at 5:20 p.m. ROLL CALL: Councilmen’s: Luis Gravelle, Ricardo Verdugo, Mayor Alvaro Preciado. ABSENT: Mayor Pro Tem Ramirez, Councilmen Pablo Hernandez. STAFF: Lopez, Ortiz, Price, Bermudez, Williams, Verdugo. LEGAL COUNCEL: Moses Diaz. CITY CLERK: Government Code Section 54952.3: The members of the City Council/Successor Agency are entitled to receive a total of $300.00 per month because of being elected to the City Council. They receive no other compensation for sitting as a member of Successor Agency. The City Council went into Closed Session at 5:23 p.m. CLOSED SESSION: (City/Successor Agency): It is the intent of this governing body to meet in closed session to review its position and to instruct its designated representatives: Any person may directly address the Council/Agency at this time on items of interest regarding Closed Session. A. PENDING LITIGATION (Government Code § 54956.9). Conference with legal counsel – ANTICIPATED LITIGATION (Government Code § 54956.9(d)). Significant exposure to litigation (Government Code § 54956.9(d)(2)). Number of potential cases is: 1. B. Conference with Labor Negotiator(s) (Government Code § 54957.6). It is the intent of this governing body to meet in Closed Session to review its position and to instruct its designated representatives: Designated representatives: City Employees Bargaining Units 1-5/APOA. C. Personnel (Government Code §54957(b)). Consider Public Employee Performance Evaluation for the Position of: • City Manager Mayor Preciado re-opened the City Council meeting at 6:19 p.m. with nothing to report. PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULED APPEARANCES: Rob Williams, Public Works Director introduced new landscaper – Joshua Moreno: Joshua is in training and hope he stays for many years. Joshua would like to thank you all for the opportunity. CONSENT CALENDAR: All items listed under the consent calendar are routine and enacted by one motion: (Action). A. Consider City of Avenal/Successor Agency’s Approval of Minutes for May 25, 2023. B. Ratify Reinvestment of Certificate of Deposit (CD) for a new five-year term through Multi-Bank Securities, Inc. (MBS). Joint Meeting City Council/Successor Agency/PFA – June 8, 2023 Page 2 of 5 Council Member/Successor Agency Member Verdugo motioned to approve Consent Calendar, seconded by Mayor/Successor Agency Member Preciado, and motion carried. Roll Call Vote: AYES: Verdugo, Preciado. NOES: Gravelle. ABSENT: Ramirez, Hernández. ABSTAIN: None. MAYOR & COUNCIL MEMBERS/ SUCCESSOR AGENCY/ITEMS FOR CONSIDERATION: A. None. ACTIVITY REPORTS/SPECIAL PRESENTATIONS & COMMITTEE REPORTS: A. Activity Reports 1. Activities Department Report: Shelia Verdugo, Recreation Supervisor. Shelia Verdugo, Recreation Supervisor reported the following: 1) working on Summer Kidz Spot – KCAO is scheduled for the Healthy Eating Habits once a week – they are shooting for Mondays; 2) • Summer Staff – Interviews were held on Thursday, 3) Field Trip: July 11th to Island Water Park; 4) Movie at Theater for AES students that met testing benchmarks. May 25 – 51 students and two teachers attended; 5) May 24th Community Garden meeting; 6) • June 16th – 11:00 am the Master Gardener Program will be out to meet at the site to give direction and to discuss how their program can assist or participate in the growth of the garden.; 7) July 11 – 10am meeting with Diane Bernal, KCBH Unit Supervisor. Providing training for staff about services the county is providing and how to access them; 8) Flea Market – June 9th – 7-10 pm in Rice Park. 9) Fireworks Show and Patriotic Program: June 24th in Rice Park 6-10 pm. Working - with Pyro Spectaculars, Kings County Fire Department and RSUSD to make activities and shoot site work. 2. IT Department Activity Report: Humberto Bermudez, IT Manager. Humberto Bermudez, IT Manager reported the following: 1) continuing services Internet, Phone system, Emails, Server, Clerk software; and 2) Other: working with Kings County Behavioral Health on digital signage across the city. Provides schematics and a parts list for a modular dance floor for the Jaripeo. Scheduling a camera demo with Verkada’s cloud-based camera and access control systems. Continues to work with KCAG to allow regular remote viewing and participation of their monthly meetings and maintain the city website and provide tech support across all facilities. Daily duties. 3. Public Works/Code Enforcement/Animal Control Activity Report: Scott Davis, Public Works Supervisor. Rob Williams, Public Works Director, reported on the following: 1) Code Enforcement; 2) Park & Landscaping; 3) Streets;4) Water Distribution; 5) Wastewater Collection; and 6) Vehicle, Equipment, & Building Maintenance. B. Special Presentations/Reports: 1) Background on Community Choice Aggregation (CCE) by EES Consulting, A GDS Associates Company EES Consulting, A GDS Associates Company reported the following: 1) CCE replaces Investor-Owned Utility (IOU - e.g., SCE) as purchaser of power for customers; 2) Utilities still responsible for delivery of power to customers; 3) CCEs typically buy more renewable power. CCEs have greater regulatory flexibility; 4) than IOU on buying power. CCEs receive customer revenues from IOU, pay off operating expenses, retain net revenues. CCEs can still work with IOUs to develop reliable electric grids in their communities. Utilities still responsible for delivery of power to customers. PUBLIC HEARING(s): Joint Hearing of the City of Avenal Successor Agency RDA Trust Obligations Fund/Public Finance Authority: Antony Lopez, City Manager reported that The City, Successor Agency/RDA and Public Financing Authority are required to have adopted budgets in place by July 1, 2023. Due to uncertainties, Staff is recommending the following: 1) continue the Public Hearing(s); 2) adopt FY 2023/24 Operating Budgets by Resolution (City, Successor Agency/RDA & Public Financing Authority); 3) continue monitoring activity that could affect the City's finances over the next few months; and 4) resume review of the budgets during the first quarter of the fiscal year. In the event the FY 2022/23 Budget is not adopted by June 30, 2023, the following Resolutions will need to be considered/adopted to meet payroll and operating expenses until a final budget is approved. Joint Meeting City Council/Successor Agency/PFA – June 8, 2023 Page 3 of 5 Mayor Preciado opened the Public Hearing at 7:28 p.m. and closed at 7:29 p.m. with no public comments. A. Consider Proposed City of Avenal Fiscal Year (FY) 2023/2024 City Budget /Fees & Charges: • Staff Report • Public Hearing • Discussion/Action: Approval by Resolution (including Fees & Charges). Note: Funding Requests included in FY 2023/2024. B. Consider Proposed Avenal Successor Agency/RDA Debt Obligation Fund (FY) 2023/2024 Budget: • Staff Report • Public Hearing • Discussion/Action: Approval by Resolution. C. Consider Proposed Finance Authority Public Finance Authority (PFA) Fiscal Year 2023/2024 City Budget: • Staff Report • Public Hearing • Discussion/Action: Approval by Resolution. Mayor Preciado motioned the following: 1) continue the Public Hearing(s); 2) adopt FY 2023/24 Operating Budgets by Resolution (City, Successor Agency/RDA & Public Financing Authority); 3) continue monitoring activity that could affect the City's finances over the next few months; and 4) resume review of the budgets during the first quarter of the fiscal year. In the event the FY 2022/23 Budget is not adopted by June 30, 2023, the following Resolutions will need to be considered/adopted to meet payroll and operating expenses until a final budget is approved, seconded by Councilman Gravelle, and motion carried. RESOLUTION 2023-27: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL APPROVING A FISCAL YEAR 2023/2024 OPERATING BUDGET IN ORDER TO MEET PAYROLL AND OPERATING EXPENSES UNTIL THE FINAL FISCAL YEAR 2023/2024 CITYBUDGET IS ADOPTED. Mayor Preciado motioned to approve, seconded by Councilman Gravelle and motion carried. SA RESOLUTION 2023-01: A RESOLUTION OF THE AVENAL SUCCESSOR AGENCY/RDA DEBT OBLIGATION FUND OF THE CITY OF AVENAL APPROVING A FISCAL YEAR 2023-2024 OPERATING BUDGET IN ORDER TO MEET OPERATING EXPENSES UNTIL THE FINAL FISCAL YEAR 2022/2024 AVENAL SUCCESSOR AGENCY/RDA DEBT OBLIGATION FUND BUDGET IS ADOPTED. Mayor Preciado motioned to approve, seconded by Councilman Gravelle and motion carried. PFA RESOLUTION2023-01: A RESOLUTION OF THE AVENAL PUBLIC FINANCING AUTHORITY OF THE CITY OF AVENAL APPROVING A FISCAL YEAR 2023-2024 OPERATING BUDGET IN ORDER TO MEET OPERATING EXPENSES UNTIL THE FINAL FISCAL YEAR 2023/2024 AVENAL PUBLIC FINANCING AUTHORITY FUND BUDGET IS ADOPTED. Mayor Preciado motioned to approve, seconded by Councilman Gravelle and motion carried. Roll Call Vote: AYES: Preciado, Gravelle, Verdugo. NOES: None. ABSENT: Ramirez, Hernández. ABSTAIN: None. OLD BUSINESS: A. None. NEW BUSINESS: A. Consider Fiscal Year 2023-2024 – End Budget Revisions: City Manager Lopez reported that as part of the auditing process, Staff must address and propose to the City Council fiscal budget year-end revisions which must be approved prior to June 30, 2023. For the FY 2022/2023 budget, supply chain availability issues, inflation, major projects, and staff turn-over have adversely affected many accounts in ways not previously foreseen. Additionally, a software glitch from Central Square for the accounts receivables end have caused delays in accurately accounting revenues to the right Joint Meeting City Council/Successor Agency/PFA – June 8, 2023 Page 4 of 5 accounts. Accordingly, staff will need additional time to reallocate budget amounts accordingly to reconcile revenues with expenditures. Staff is requesting that the City Council authorize Staff to adjust the revenues at fiscal year-end to reflect the actual revenues received and adjust the expenditures within the budgeted funds and reallocate funds as necessary. Staff is also requesting authorization to adjust the revolving funds as needed throughout the year: Revolving Accounts consist of CDBG, HOME, CalHome, Grants, Recreation programs, Explorers, Police Activity League, etc. Staff recommends by motion, authorize the City Manager to utilize the department budgets in the best interest of the City, within the departments approved bottom line budgeted Fund amounts as per approved by the City Council, and further authorize the year-end Fiscal Year 2022/2023 budget revisions (revenues and revolving accounts) as needed and/or required after closure of Fiscal Year 2022/2023. RESOLUTION 2023-28: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL AUTHORIZING THE CITY MANAGER TO AMEND THE CITY’S BUDGET FOR FY 2023-2024. Councilman Gravelle motioned to approve, seconded by Councilman Verdugo and motion carried. Roll Call Vote: AYES: Gravelle, Verdugo, Preciado. NOES: None. ABSENT: Ramirez, Hernández. ABSTAIN: None. B. Consider Fiscal Year Appropriations Limits: City Manager Lopez reported that Article XIII B of the State of California Constitution places limits on the amount of revenue which can be spent by all entities of Government. To address the restrictions of the Article and increase the accountability of government entities in adopting their limits, voters approved Proposition Ill in June 1990. Among other things, this Proposition provides new adjustment formulas which should make the Appropriation Limits more responsive to local growth issues. It also requires an annual review of Limit Calculations. City Manager Lopez continues that the City Council shall, each year by Resolution, establish an appropriations limit for the expenditure of so-called proceeds of taxes. The adoption of the Resolution must be at a regularly scheduled meeting of the City Council or at a noticed special meeting. The Fiscal Year 2023/2024 Appropriations Limit is $4,307,231.82 and the budget estimate of revenues from the proceeds of taxes is estimated to be less than $1,500,000.00. Since the City's estimated revenues are $2,807,231.82 less than the limitations, it is safe to say we will not exceed our limit this year. It is staff's recommendation that the City Council establish the Appropriations Limit for Fiscal Year 2023/2024 by adopting the proposed resolution. RESOLUTION 2023-29: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL ESTABLISHING FISCAL YEAR 2023-24 APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION. Councilman Gravelle motioned to approve, second by Councilman Gravelle, and motioned carried. Roll Call Vote: AYES: Verdugo, Gravelle, Preciado. NOES: None. ABSENT: Ramirez, Hernández. ABSTAIN: None. C. Consider Transfer of Monies CIP Fund: Staff is requesting to table this item for future date and be brought back to the City Council. Councilman Verdugo approved to table item for future item until brought back to the City Council, seconded by Councilman Gravelle, and motion carried. Roll Call Vote: AYES: Verdugo, Gravelle, Preciado. NOES: None. ABSENT: Ramirez, Hernández. ABSTAIN: None. Joint Meeting City Council/Successor Agency/PFA – June 8, 2023 Page 5 of 5 CORRESPONDENCE/ANNOUNCEMENTS/CLOSING COMMENTS: City Manager Lopez reported the following: Thanked, the City Council for the and appreciate their support for Laneva Jaripeo & dance. He invited the City Council to the Jaripeo this Sunday and tickets are $35.00. Also, City Manager Lopez will be out of the Country June 27, 2023-July 4, 2023. Also, requesting moving November 9th meeting to be moved to November 16th meeting. Councilman Verdugo reported the following: 1) Who is running the Jaripeo. City Manager stated Rotary; 2) the Community Garden it does not seem to be a community garden. It looks more like a City Garden and Councilman Verdugo would like staff to stop working on the Community Garden. Moses Dias, City Attorney mentioned that this item is not on the agenda no decision can be made at this time. Councilman Verdugo is requesting Study Session Item Community Garden and invite the community. Mayor Preciado reported the following: 1) many meetings; 2) dial ride; 3) thanked all for attending. City Manager Lopez mentioned that the school will cover dial a ride because it can be used for student in town or to the Resource Center. Also, there was more interest in going out of town to Hanford and staff continues to work on better solutions for the community. ADJOURNMENT: There being no further business the City Council meeting was adjourned at 8:04 p.m. Respectfully submitted, Maria Ortiz, City Clerk