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 27, 2024, 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 5:21 p.m. ROLL CALL: Councilman Lou Gravelle, Pablo Hernandez, Ricardo Verdugo, Mayor Alvaro Preciado. ABSENT: Councilman Alejandro Ramirez. STAFF: Lopez, Price, Bermudez, Davis, Velasco, Nevarez, Davis, William. 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 $430.00 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 5:22 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. Conference with Real Property Negotiator(s) (Government Code § 54956.8). It is the intent of this governing body to meet in Closed Session to confer with its real property negotiator(s) concerning the purchase, sale, exchange, or lease of real property by or for this agency as follows: Property Description: APN: 040-320-009-000; & 040-320-014-000 Negotiator(s): City Manager/City Attorney. Party with whom negotiating: CrisCom Company. Instructions to negotiator concerning: Terms of Payment A. Pending Litigation (Government Code § 54956.9). Conference with legal counsel – EXISTING LITIGATION (Government Code § 54956.9(d)(1)). 1. Parties, case/claim no: Ross Family Properties, LLC, v. City of Avenal (Kings County Superior Court, Case No. 24CU0071). 2. Parties, case/claim no: Jesus A. Mendez, v. City of Avenal (Kings County Superior Court, Case No. 24CU0108) Mayor Preciado reopened meeting at 6:14 p.m. with nothing to report. Mayor Preciado appointed Griselda Price as City Clerk for this City Council meeting. PUBLIC COMMENT/ANNOUNCEMENTS & UNSCHEDULED APPEARANCES: Salvador Flores, Fire Chief reported the following: 1) Fire Works camping – Safety; and fines with jail time. Anna Lara introduced Summer Community Activities Staff: 1) Edgar Garcia; 2) Cynthia Nieto; and 3) Caeleb Vargas. Director of Administrative Services introduced new staff: 1) Temporary HR Assistant: Natalee Lomeli; and 2) Temporary Office Clerk Assistant: Emily López. Joint Meeting City Council/Successor Agency/PFA – June 27, 2024 Page 2 of 5 Antony Lopez, City Manager introduces Summer Interns: Nohemi Barrios, Karla Curiel, Grace Resendez, & Bryanna Padilla. All happy to work for the City of Avenal and learn as much as possible. 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 June 13, 2024. B. Consider Authorizing Adoption of Workplace Violence Prevention Plan. Council Member/Successor Agency Member Verdugo motioned to approve Consent Calendar, seconded by Councilman/Successor Agency Member Gravelle, and motion carried. AYES: Verdugo, Gravelle, Hernandez, Preciado. NOES: None. ABSENT: Ramirez. ABSTAIN: None. ACTIVITY REPORTS/SPECIAL PRESENTATIONS& COMMITTEE REPORTS: A. Activity Reports: 1. Police Department Activity Report: Cecilio Velasco, Chief of Police. Cecilio Velasco, Chief of Police reported the following: 1) Avenal Police Department announces the return of Police Explore; 2) Leadership Stability; 3) Recruit and Retain the Best; 4) International Model of Community Trust; 5) Amongst the Safest Cities in America; and 6) Embrace Wellness Among our Employees. 2. Community Development Activity Report: Karl Schoettler, Contract City Planner, 4Creeks Kelsey, City Planning Consultants reported the following: 1) Provided review on the site plan submitted for Amigo Market, requesting additional information; 2) Researched and provided cumulative projects list to identity development projects for environmental review for a Fresno County Project – the project is adjacent to Avenal and the consultant is incorporating Avenal projects to assess overall cumulative environmental impacts as part of their analysis; 3) Review of a Conditional Use Permit for a second dwelling unit in the DC zone district; 4) Review and approve for planning compliance business licenses and temporary use permits; and 5) Response to miscellaneous public and staff inquiries planning and zoning issues. 3. Economic Development & Grant Writing Report: Emily Engelsgaard, Grants Manager, the CrisCom Company. Antony Lopez, City Manager reported the following: 1) 2024 State Legislative Calander is attached; 2) Pending Legislation of Interest – 2023-2024 Session; 3) Project Description. B. Special Presentations/Reports: None. MAYOR & COUNCIL MEMBERS/ SUCCESSOR AGENCY/ITEMS FOR CONSIDERATION: A. None PUBLIC HEARING(s): Joint Hearing of the City of Avenal Successor Agency RDA Trust Obligations Fund/Public Finance Authority: City Manager Lopez reported the following: The Public Hearing Notice to consider the proposed City of Avenal's FY 2024/25 Budget; proposed Avenal Successor Agency/RDA Debt Obligation Fund FY 2024/25 Budget; and, proposed Public Financing Authority (PFA) FY 2024/25 Budget was duly noticed and posted for the City Council's June 27, 2024, Regular meeting. Any new proposed "Fees and Charges" were also noted in the Public Hearing Notice. The Avenal City Council noticed and held one (1) FY 2024/25 Budget Workshops to review all departments/funds including fund revenues and fund expenditures with City Department Heads and Management Staff. As part of the review process and associated discussions, the following concerns were discussed: increase revenues due to inflation, and better than expected returns from Measure A, austerity from frugal spending by Staff. While all very positive, staff turnover and shortages also have contributed to the readiness of the budget by the June 30th deadline. Joint Meeting City Council/Successor Agency/PFA – June 27, 2024 Page 3 of 5 Staff recommend that the City, Successor Agency/RDA and Public Financing Authority are required to have adopted budgets in place by July 1, 2024. Due to delays as noted above, Staff is recommending the following: 1) continue the Public Hearing(s); 2) adopt FY 2024/25 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. Staff is requesting to adopt an operating budget, and have the final budget approved by July 11, 2024, the next regular City Council meeting. A. Consider Proposed City of Avenal Fiscal Year (FY) 2024/2025 City Budget /Fees & Charges:  Staff Report.  Public Hearing.  Discussion/Action: Approval by Resolution (including Fees & Charges). Note: Funding Requests included in FY 2022/2023. B. Consider Proposed Avenal Successor Agency/RDA Debt Obligation Fund (FY) 2024/2025 Budget:  Staff Report.  Public Hearing.  Discussion/Action: Approval by Resolution. C. Consider Proposed Finance Authority Public Finance Authority (PFA) Fiscal Year 2024/2025 Budget:  Staff Report.  Public Hearing.  Discussion/Action: Approval by Resolution. RESOLUTION 2024-27: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL APPROVING A FISCAL YEAR 2024/2025 OPERATING BUDGET IN ORDER TO MEET PAYROLL AND OPERATING EXPENSES UNTIL THE FINAL FISCAL YEAR 2024/2025 CITY BUDGET IS ADOPTED. Councilman Gravelle motioned to approve, seconded by Councilman Hernandez and motioned carried. SA RESOLUTION 2024-01: A RESOLUTION OF THE AVENAL SUCCESSOR AGENCY/RDA DEBT OBLIGATION FUND OF THE CITY OF AVENAL APPROVING A FISCAL YEAR 2024-2025 OPERATING BUDGET IN ORDER TO MEET OPERATING EXPENSES UNTIL THE FINAL FISCAL YEAR 2024/2025 AVENAL SUCCESSOR AGENCY/RDA DEBT OBLIGATION FUND BUDGET IS ADOPTED. Councilman Gravelle motioned to approve, seconded by Councilman Hernandez and motioned carried. PFA RESOLUTION 2024-01: A RESOLUTION OF THE PUBLIC FINANCING AUTHORITY OF THE CITY OF AVENAL APPROVING A FISCAL YEAR 2024-2025 OPERATING BUDGET IN ORDER TO MEET OPERATING EXPENSES UNTIL THE FINAL FISCAL YEAR 2024/2025 AVENAL PUBLIC FINANCING AUTHORITY BUDGET IS ADOPTED. Councilman Gravelle motioned to approve, seconded by Councilman Hernandez and motioned carried. Roll Call Vote AYES: Gravelle, Hernandez, Verdugo, Preciado. NOES: None. ABSTAIN: None. ABSENT: Ramirez. OLD BUSINESS: A. None NEW BUSINESS: A. Consider Fiscal Year 2022/2023 and 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, 2024. Due to being short-staffed and catching up on audits, which should all be current by the end of the year, staff is still working between Central Square (all revenues) and Joint Meeting City Council/Successor Agency/PFA – June 27, 2024 Page 4 of 5 OpenGov (all expenses). We appreciate the Council’s patience. At the budget workshop on June 26, the Council reviewed all expenditures from FY’23 and FY’24 to May 31, 2024. The Council reviewed and is aware that revenues are moderately higher than expected, and staff expects some surplus. Staff needs more time to finalize 2024 with June numbers and to prepare the 2024 final budget. City Manager Lopez continues that for the FY 2023/2024 budget, supply chain availability issues, inflation, major projects, and staff turnover have adversely affected many accounts in ways not previously foreseen. Additionally, a software glitch from Central Square for the accounts receivables end has caused delays in accurately accounting for revenues to the right accounts. Accordingly, staff will need additional time to reallocate budget amounts 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 that 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 2023/2024 budget revisions (revenues and revolving accounts) as needed and/or required after closure of Fiscal Year 2023/2024. RESOLUTION 2024-28: 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 Hernandez and motioned carried. Roll Call Vote AYES: Gravelle, Hernandez, Verdugo, Preciado. NOES: None. ABSTAIN: None. ABSENT: Ramirez. B. Consider Fiscal Year Appropriations Limits: (Discussion/Action). Griselda Price, Director of Administrative Services 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. 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 2024/2025 Appropriations Limit is $4,450,656.78 and the budget estimate of revenues from the proceeds of taxes is estimated to be less than $1,900,000.00. Since the City's estimated tax revenues are $(2,550,656.78) less than the limitations, it is safe to say we will not exceed our limit this year. Staff recommends that the City Council establish the Appropriations Limit for Fiscal Year 2024/2025 by adopting the proposed resolution. RESOLUTION 2024-29: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF AVENAL ESTABLISHING FISCAL YEAR 2024-25 APPROPRIATIONS LIMIT PURSUANT TO ARTICLE XIIIB OF THE CALIFORNIA CONSTITUTION. Councilman Gravelle motioned to approve, seconded by Councilman Hernandez and motioned carried. Roll Call Vote AYES: Gravelle, Hernandez, Verdugo, Preciado. NOES: None. ABSTAIN: None. ABSENT: Ramirez Joint Meeting City Council/Successor Agency/PFA – June 27, 2024 Page 5 of 5 CORRESPONDENCE/ANNOUNCEMENTS/CLOSING COMMENTS: City Manager Lopez reported the following: 1) all invited to the Independence Celebration with Drons and Fire Works at the Sports Complex. Also, give thanks to Public Works. Thanked the City Council for the patience. Mayor Preciado reported the following: 1) attended many meetings and thanks the community for attending. ADJOURNMENT: Mayor Preciado report that with no further business the meeting was adjourned at 7:20 p.m. Respectfully submitted, Maria Ortiz, City Clerk