City Council/Successor Agency to the RDA

City of Calimesa Regular Meeting of the City Council and Successor Agency to the Calimesa Redevelopment Agency AGENDA Monday, March 1, 2021 – 6:00 p.m. Norton Younglove Multipurpose Senior Center 908 Park Avenue, Calimesa, CA 92320 Pursuant to the State of California Executive Order N-29-20, regarding the COVID-19 pandemic, the Calimesa City Council will be conducting this meeting in the Norton Younglove Senior Center maintaining appropriate social distancing with MANDATORY MASKS. Members of the public may participate in this meeting in one of two ways: 1) In person at the Norton Younglove Senior Center, 908 Park Avenue, Calimesa, CA 92320, maintaining a 6-foot distance from others. FACE MASKS ARE MANDATORY. 2) By viewing the meeting on Facebook Live, beginning at 6:00 p.m. at https://www.facebook.com/cityof.calimesa Submission of Public Comments: If attending the meeting and maintaining appropriate social distancing, public comment will be allowed by completing a blue speaker slip and providing it to the City Clerk at the meeting. Otherwise, public comment will be accepted via email. Please send comments via email to the Calimesa City Clerk at dgerdes@cityofcalimesa.net. Identify public comment or the specific agenda item you wish to comment on in your email’s subject line. You may submit comments on any agenda item. Emailed comments must be submitted by 5:30 p.m. on Monday, March 1, 2021 and will be read into the record by the City Clerk. Electronic comments on agenda items may only be submitted via email and comments via text and social media (Facebook, Twitter, etc.) will not be accepted. William Davis, Mayor  Linda Molina, Mayor Pro Tem Jeff Cervantez, Council Member  Wynona Duvall Council Member  Wendy Hewitt, Council Member Bonnie Johnson, City Manager  Amy Greyson, City Attorney In compliance with the Americans with Disabilities Act, if you need special assistance to participate in a City meeting or other services offered by this City, please contact the City Clerk’s Office, (909) 795-9801. Notification of at least 48 hours prior to the meeting or time when services are needed will assist the City staff in assuring that reasonable arrangements can be made to provide accessibility to the meeting or service. Any public writings distributed by the City to at least a majority of the Council Members regarding any item on this regular meeting agenda will be made available at the public counter at City Hall located at 908 Park Avenue, Calimesa, CA 92320 ANNOUNCEMENT REGARDING SPEAKER SLIPS Anyone wishing to address the City Council either during “Communications from the Public” or on any item on the agenda should fill out a blue speaker slip and give that slip to the City Clerk prior to the item being heard. Please write the number of the agenda item or the subject of your presentation on the slip. Please observe a time limit of three (3) minutes when giving your presentation. When called upon, please step forward to the microphone, state your name for the record, whom you represent and any statement you wish to make. Please be advised that you may not defer your three (3) minutes to another speaker. CALL TO ORDER ROLL CALL: MAYOR DAVIS, MAYOR PRO TEM MOLINA, COUNCIL MEMBER CERVANTEZ, COUNCIL MEMBER DUVALL AND COUNCIL MEMBER HEWITT. STAFF: CITY MANAGER JOHNSON, CITY ATTORNEY GREYSON, CITY CLERK GERDES, PLANNING MANAGER LUCIA, PUBLIC WORKS DIRECTOR MONSON, CITY ENGINEER THORNTON, FIRE CHIEF JOHNSON AND SHERIFF CAPTAIN SALAS. PLEDGE OF ALLEGIANCE Regular Meeting of the Calimesa City Council and Successor Agency to the Calimesa Redevelopment Agency March 1, 2021 Page 1 of 4 Page 1 of 118 COMMUNICATIONS FROM THE PUBLIC Anyone wishing to address the Council on any item within the Council’s jurisdiction that is not on the agenda may do so at this time. This is not a time for City Council discussion of non-agenda items. After receiving public comments, Council Members or staff, after being recognized by the Mayor, may briefly respond to statements made by the public or questions posed by the public. In addition, Council Members may ask questions for clarification or make a referral to staff for factual information to be reported back to the Council at a later meeting. APPROVAL OF THE AGENDA RECOMMENDATION: Move to approve the agenda Motion____________________ Second____________________ Vote____________________ CONVENE JOINT CITY COUNCIL AND SUCCESSOR AGENCY TO THE CALIMESA REDEVELOPMENT AGENCY CALL TO ORDER ROLL CALL: AGENCY CHAIR DAVIS, AGENCY VICE-CHAIR MOLINA, AGENCY MEMBER CERVANTEZ, AGENCY MEMBER DUVALL AND AGENCY MEMBER HEWITT. JOINT MEETING BUSINESS ITEM JM1. 2020-2021 MID-YEAR FINANCIAL REPORT. Page 5 RECOMMENDATION: That the City Council adopt Resolution No. 2021-10 a Resolution of the City Council of the City of Calimesa amending the Fiscal Year 2020-2021 budget to include certain recommended adjustments. ADJOURN THE SUCCESSOR AGENCY TO THE CALIMESA REDEVELOPMENT AGENCY AND RECONVENE THE CITY COUNCIL MEETING CONSENT CALENDAR (Items 1 – 7) The following Consent Calendar items are expected to be routine and non-controversial. Council will act upon them at one time without discussion. Any Council Member or staff member may request removal of an item from the Consent Calendar for discussion. 1. APPROVAL OF CITY COUNCIL ACTION MINUTES. Page 19 a) City Council action minutes of February 16, 2021 Regular Meeting. 2. RECEIVE AND FILE CITY COMMISSION & BOARD MINUTES. Page 26 a) There are no minutes ready for approval at this time. 3. APPROVAL OF WARRANT REGISTERS. Page 27 a) Check Register Report with a total of $195,982.86 (Check Nos. 36604 to 36653) b) February 18, 2021 Payroll of $72,677.54 4. WAIVE FULL READING OF ANY PROPOSED ORDINANCES ON THE AGENDA. Page 32 This permits reading the title only in lieu of reciting the entire text of the Ordinances. This does not take policy action on the Ordinances or approve or disapprove any Ordinances on the agenda. Regular Meeting of the Calimesa City Council and Successor Agency to the Calimesa Redevelopment Agency March 1, 2021 Page 2 of 4 Page 2 of 118 5. TREASURER’S REPORT FOR THE QUARTER ENDED DECEMBER 31, 2020. Page 33 RECOMMENDATION: That the City Council receive and file the Treasurer’s Report for the Quarter Ended December 31, 2020. 6. SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF CALIMESA AND NOBEL SYSTEMS, INC. TO PROVIDE ENTERPRISE CLOUD GEOGRAPHIC INFORMATION SYSTEMS SERVICES Page 38 RECOMMENDATION: That the City Council approve the Second Amendment to the Agreement between the City of Calimesa and Nobel Systems, Inc. to provide Enterprise Cloud Geographic Information Systems Services. 7. RESIDENTIAL INFILL PRIORITY AREA OVERLAY ZONE PROJECT – PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF CALIMESA AND ALBERT A. WEBB ASSOCIATES FOR PLANNING AND ENVIRONMENTAL SERVICES; ACCEPTANCE OF “BUILDING HOMES AND JOBS ACT” SB 2 PLANNING GRANT AWARD THROUGH THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (“HCD”) IN THE AMOUNT OF $160,000 AND AMENDMENT TO FISCAL YEAR 2020-2021 BUDGET TO INCLUDE ACCEPTANCE OF SB 2 GRANT FUNDS; ACCEPTANCE OF LOCAL EARLY ACTION PLANNING (“LEAP”) GRANT AWARD THROUGH THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (“HCD”) IN THE AMOUNT OF $65,000 AND AMENDMENT TO FISCAL YEAR 2020-2021 BUDGET TO INCLUDE ACCEPTANCE OF LEAP GRANT FUNDS Page 55 RECOMMENDATION: That the City Council: 1. Approve a professional services agreement in the amount of $203,900 with Albert A. Webb Associates (“Webb”) for planning and environmental services to develop a residential infill priority area overlay zone. (Attachment A) 2. Adopt Resolution 2021-12 to accept $160,000 in SB 2 grant funds and amend the fiscal year 2020-21 budget to include acceptance of said grant funds and designate the City Manager as the authorized official to execute grant program agreements. (Attachment B) 3. Adopt Resolution 2021-13 to accept $65,000 in LEAP grant funds and amend the fiscal year 2020-21 budget to include acceptance of said grant funds and designate the City Manager as the authorized official to execute grant program agreements. (Attachment C) POLICE CHIEF COMMENTS & REPORTS FIRE CHIEF COMMENTS & REPORTS MAYOR & COUNCIL MEMBER REPORTING OF COUNTY & REGIONAL MEETINGS This is the time for comments, announcements and/or reports on meetings attended at public expense as required by AB 1234. Regular Meeting of the Calimesa City Council and Successor Agency to the Calimesa Redevelopment Agency March 1, 2021 Page 3 of 4 Page 3 of 118 BUSINESS ITEMS 8. LIBRARY COMMISSION APPOINTMENT Page 89 RECOMMENDATION: That Council Member Hewitt appoint one member to the Library Commission and that the City Council ratify the appointment by a majority vote and adopt Resolution No. 2021-11 providing for the appointment made. 9. SCAG 2021 GENERAL ASSEMBLY APPOINTMENT OF A VOTING DELEGATE AND AN ALTERNATE VOTING DELEGATE. Page 93 RECOMMENDATION: That the City Council appoint a voting delegate and an alternate voting delegate to represent the City of Calimesa at the Virtual SCAG General Assembly on May 6, 2021. 10. COUNCIL DISCUSSION OF PROPOSED SENATE BIL 9 REGARDING INCREASED DENSITY IN SINGLE-FAMILY ZONES AND THE COVID-19 RELIEF BILL FOR STATE AND LOCAL FISCAL RECOVERY FUNDS. Page 94 RECOMMENDATION: That the City Council discuss the information presented and provide direction to staff regarding any desired future actions. COUNCIL MEMBERS’ COMMENTS & REPORTS This is the time for additional general comments, announcements, reports on meetings attended at public expense as required by AB 1234, requests of staff, and other issues of concern to Council Members may be presented briefly at this time. The Council may not legally take action on any item presented at this time other than to direct staff to investigate a complaint or place an item on a future agenda unless (1) by a majority vote, the Council determines that an emergency situation exists, as defined by Government Code § 54956.5 or (2) by a four-fifths vote, the Council determines that there is a need for immediate action and the need for action arose subsequent to the agenda being posted as required by Government Code § 54954.2(b). CITY MANAGER COMMENTS & REPORTS ADJOURNMENT Adjourn to the Regular Meeting of the City Council on Monday, March 15, 2021 at 6:00 p.m. Regular Meeting of the Calimesa City Council and Successor Agency to the Calimesa Redevelopment Agency March 1, 2021 Page 4 of 4 Page 4 of 118  JOINT CITY COUNCIL & SUCCESSOR AGENCY TO THE CALIMESA REDEVELOPMENT AGENCY MEETING AGENDA REPORT JOINT AGENDA ITEM NO. 1 SUBJECT: 2020-21 MID-YEAR FINANCIAL REPORT MEETING DATE: March 1, 2021 PREPARED BY: Bonnie Johnson, City Manager RECOMMENDATION: That the City Council approve Resolution No. 2021-10 a resolution of the City Council of the City of Calimesa amending the Fiscal Year 2020-21 Budget to include certain recommended adjustments. DISCUSSION AND ANALYSIS: It is considered best practices that the budget be reviewed on an ongoing basis in order to ensure the fiscal integrity of all City operations. The purpose of this report is to provide current summary information that will assist the City Council in the decision- making process. This report includes updated projections to close the fiscal year for each City fund (Attachment A), as well as all recommended changes to the budget (Attachments B through E). The attachments to this report are as follows: • Attachment A: Fund Summary – reflects July 1, 2020 available beginning balances based on the 2019-20 annual audit, as well as adjusted 2020-21 revenue and expenditure projections which incorporate all proposed changes • Attachment B: General Fund Summary – reflects summary adjustments recommended in the General Fund • Attachment C: General Fund Revenue Sources by Type – reflects recommended revenue adjustments by line item • Attachment D: General Fund Expenditure Summary – reflects recommended expenditure adjustments in detail • Attachment E: Other Funds Adjustments – reflects recommended revenue and expenditure adjustments in other City funds • Attachment F: Carryovers and Other Previously Approved Budgetary Changes – reflects appropriations unspent in 2019-20 and carried forward to 2020-21, as well as additional appropriations approved thus far in 2020-21. Budgetary Carryovers As explained and adopted in Resolution 2020-17 which approved the 2020-21 Budget, at the end of FY 2019-20 certain purchase commitments or contracts may exist representing contractual obligations of previously budgeted funds. In addition, certain amounts related to one-time allocations for specific projects and services may remain unspent. This is common in the Capital Improvement Program (CIP) wherein projects frequently cross fiscal years. At the City Manager’s discretion, these amounts will be deemed to be “rebudgeted” as an addition to Back to Agenda Page 5 of 118 the budget amounts approved so long as these amounts do not cause total expenditures in FY 2019-20 to exceed projected actuals to close the year as shown in the 2020-21 Proposed Budget. There was a need for carryovers, and thus, in addition to the adjustments proposed in this report, the 2020-21 budget has already been revised by those amounts. For informational purposes only, a schedule of Carryovers and Other Previously Approved Budgetary Changes by fund is presented as Attachment F. General Fund With 50% of the fiscal year complete, General Fund revenues are 38.8% received while expenditures are 41.3% spent. After incorporation of recommended adjustments, the percentages are 34.6% and 39.8%, respectively. However, it should be noted that as of January 31st (the beginning of the second quarter of the fiscal year) the percentages increase to 49.9% and 46.7%, respectively. The numbers, referred to above, being below 50% through December 31st is typical and due to many factors. For example, certain major General Fund revenues such as property taxes are primarily collected in the second, third and fourth quarters of the fiscal year and thus, at mid- year (December 31st), will generally show less than 50% collected. Another major revenue source, Vehicle License Fee (VLF) backfill, after recommended adjustments, represents approximately 13.5% of estimated revenue and is received in the third and fourth quarters and thus has a significant lowering effect on the percentage of revenue received through mid-year. In addition, sales tax receipts through December reflect four month’s revenue collection, or 35% received, due to the required accrual method of accounting. Although sales tax is tracking higher than originally projected, the recommended adjustment is somewhat conservative with relation to actual receipts to date. If needed, an additional sales tax adjustment will be proposed during the 2021-22 budget process. As has been the case over the past couple of fiscal years, certain development related revenue, specifically building permit issuance and related revenues, are projected to increase (which will be partially offset by a corresponding expenditure increase in the related services contract – see Attachment D). Overall, development related activity continues to remain strong, but it should be noted, many of these projects are being accounted for on a deposit basis and, thus, most of the activity is not reflected in the operational revenue and expenditure accounts. After incorporation of recommended adjustments as detailed in Attachment C, when compared to the original adopted 2020-21 budget, revenues are projected to increase by $1,021,375, or 13.9%. Although this translates to a favorable trend for both the City’s tax base and General Fund reserve, keep in mind that certain revenues are one-time in nature and should not be used to fund ongoing expenditures. One-time revenue primarily relates to certain development activity. Staff estimates that approximately $308,208 of the overall recommended revenue adjustment is one-time in nature, while $584,891 is expected to be recurring revenue. Page 6 of 118 With respect to expenditures, many operational costs are relatively straight-line in nature, i.e., there is generally a proportionate share spent each month. However, there are other operating costs that do not follow this pattern. Because of these timing issues, year to date expenditure percentages by Department may vary. For example, absent the COVID-19 response, certain wildland fire mutual aid responses and a vacant position in the Finance Department, salary and benefit costs are tracking as expected through mid-year, while contract services such as Police, Fire dispatch, City Attorney and City Engineer, which together represent approximately 32% of the operations budget, do not reflect a full 6 months of billings through December. These contract costs are billed in arrears based upon actual services provided and, thus, do not reflect a full 6 months at mid-year. This will cause the overall percentage spent through mid-year to fall below the 50% mark. The proposed General Fund expenditure adjustments result in an increase of $294,210. These adjustments are detailed in Attachment D. A portion of the recommended adjustments, or approximately $172,831, are one-time in nature; in other words, will not be recurring on an on- going basis. Others, or approximately $121,379, are ongoing in nature and will be budgeted on an annual basis going forward. For example, the expenditures include an increase in liability insurance premiums due to an overall increase in litigation in the insurance industry and not Calimesa specifically. On the other hand, workers compensation insurance also increased due partially to the insurance industry and partially due to an increase in overall payroll costs in 2019- 20. In addition, a portion of the recommended adjustments in Information Technology are ongoing in nature. This includes a Public Works work order application that will interface with our GIS system. Finally, approximately 50% of the increase in Building and Safety expense is considered ongoing and is offset by recurring revenue as noted above. The balance of the adjustments is considered one-time in nature. Besides the development related adjustment, there are a few other items of note. First, there is a one-time set-up fee associated with the implementation of the Public Works work order system mentioned above. Secondly, there was a need to purchase outside security cameras due to regular vandalism in the City Hall/Senior Center area of the complex. This expenditure is fully reimbursable by a grant from PARSAC and, as such, offsetting revenue has also been included in the recommended adjustments. In addition, an increase in the General Fund contribution toward the Singleton Road Rehabilitation project is needed to fund a change order that is in excess of the existing budgeted contingency. (Also see further explanation in the Other Funds section of this report). The last area of note is an adjustment for an increase in overtime costs in the Fire Department. Not only did the Fire Department incur significant overtime due to COVID-19 staffing adjustments, there was significant overtime related to regional strike team assignments. However, the strike team overtime and other strike team costs are subject to reimbursement from the State. To date, the City has filed for $163,912 in mutual aid reimbursements for strike Page 7 of 118 team costs and those reimbursements are reflected as offsets to these expenditures. Thus, the net effect of the requested budgetary increase has been significantly decreased. Based upon all proposed adjustments (as reflected on Attachment B), the ending General Fund projected fund balance is expected to increase by $598,889 over the current amended budget. In addition, the 2019-20 independent financial audit reflects a net increase in fund balance of $1,596,410; a $890,342 increase over original budgetary projections. This includes revenue in excess of original estimates of $599,503 and expenditure savings of $290,839. The revenue variance was mainly due to both sales tax and development related revenue exceeding original estimates. With relation to expenditure savings, it includes Fire costs ($136,196), City Attorney costs ($39,781), Finance costs ($24,826), non-departmental costs (140,099) and all other departments combined showing a budgetary overrun of $50,063. However, please note that a portion of the expenditure savings is offset General Fund carryovers of $199,105 as reflected on Exhibit F. As a result of all the activity discussed earlier in this report, the total General Fund fund balance is now projected to be $5,899,436, or 75%, at June 30, 2021. This reflects a $1,100,900 increase over the original June 30, 2021 fund balance projection. In addition, per Council action on October 7, 2019, 30% of fund balance is reserved for unanticipated one-time needs, catastrophic events, other emergencies or economic downturn. An additional 5% is reserved for equipment replacement. This results in a net unreserved fund balance of $3,139,239 Other Funds Attachment E contains the proposed revenue and expenditure adjustments for all other City funds. Adjustments are recommended in certain CFD funds to reflect the current activity (a bond issuance for Summerwind and assumption of certain JP Ranch landscaping responsibilities both which occurred after original budget adoption). Although formal budgets are not required to be adopted for CFD’s under GASB (Government Accounting Standards Board guidelines), it is recommended that budgets be adopted as a tool for staff to track expected activity. In addition, the Gas Tax fund costs are recommended to increase by $10,000 due to the need for weed control services in the public right-of-way and, in the Fire Facilities fund, costs are also recommended to increase because of higher than expected DMV fees related to the mini- pumper which was purchased for the Fire Department in March of 2020. Finally, as mentioned in the General Fund section of this report, a change order was necessary for the Singleton Road Rehabilitation project. However, due to a projected decline in Measure A revenue when this project was approved, a General Fund contribution of $25,000 was initially budgeted toward the project to cover the projected shortfall. In addition, due to a subsequent disqualification of the low bidder, the project was awarded to the second lowest bidder resulting in a less than standard contingency allocation remaining in the project budget to cover any routine change orders. As a result of the recent change order, it is now being recommended that the General Fund contribution toward the project be increased by $19,000. This will cover the current change order and allow the project to be completed and accepted. Page 8 of 118 Looking Forward Over the years, California cities have been repeatedly faced with State imposed fiscal impacts over which the cities have no local control. Two of those areas have potential to impact the City of Calimesa and will continue to be going forward. First, PERS rates have been a problem for agencies for many years due to volatility and changes in policy. However, for the first time many years, the PERS rates for active employees in Calimesa are going down slightly to 9.13%, a decrease of 0.151% percent, in 2021-22. In addition, 2022-23 PERS rate is projected to be 9.1%, another decrease of 0.03%. The rate uncertainties from year to year that all PERS agencies are facing is the result of an action by the PERS Board to lower the estimated discount rate (the assumed rate of return on investments) in its rate calculations. Furthermore, the decrease in discount rate has also resulted in an increase in the City’s unfunded liability which also has to be paid against annually in addition to the active member rate. Collectively, the impact is estimated to be approximately $20,000 in 2021-22 as a result of the change. In addition, a few years ago, the State adopted legislation regarding Successor Agencies (formerly Redevelopment Agencies) which changed the methodology for calculating the annual administrative cost allowance. Since Redevelopment Agency dissolution in 2012, Calimesa had been receiving $250,000 on an annual basis for administrative costs. Those costs include a portion of staff costs, certain City Attorney costs, Financial Consultant costs and Economic Development Consultant costs. For 2016-17, the administrative cost allowance for Calimesa was decreased to $110,544, or 50% of enforceable obligations. The funding difference of approximately $140,000 was borne by the General Fund. Since that time, the administrative allowance has been an average of $99,000 per year; 2021-22 being $97,083. The 2021-22 ROPS is currently being reviewed by the State. The State is, once again, encouraging Calimesa to file a “last and final” Recognized Obligation Payment Schedule (ROPS) given the Successor Agency obligations are mainly servicing one outstanding bond issue. If the Successor Agency takes that action, it is anticipated that the administrative allowance will be significantly further reduced by the State, thus potentially creating more impact on the General Fund. Staff continues to ask questions and evaluate options. FISCAL IMPACT: The overall proposed adjustments increase the General Fund projected fund balance by $598,889. Projected balances in all funds are shown on Attachment A. Detailed updated projections on all City funds will be provided during the upcoming 2021-22 budget adoption process. ATTACHMENTS: Attachments A through F: As described above Attachment G: Resolution No. 2021-10 Page 9 of 118 Page 10 of 118 Page 11 of 118 Page 12 of 118 Page 13 of 118 Page 14 of 118 Page 15 of 118 Page 16 of 118 Page 17 of 118 Page 18 of 118  CITY COUNCIL MEETING AGENDA REPORT AGENDA ITEM NO. 1 SUBJECT: APPROVAL OF CITY COUNCIL MEETING MINUTES MEETING DATE: March 1, 2021 PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council approve the action minutes as presented for the Regular City Council Meeting of February 16, 2021. ATTACHMENTS: Attachment A: City Council action minutes February 16, 2021 Regular Meeting. Back to Agenda Page 19 of 118 Page 20 of 118 Page 21 of 118 Page 22 of 118 Page 23 of 118 Page 24 of 118 Page 25 of 118  CITY COUNCIL MEETING AGENDA REPORT AGENDA ITEM NO. 2 SUBJECT: APPROVAL OF COMMISSION MEETING MINUTES MEETING DATE: March 1, 2021 PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk There are no minutes ready for approval at this time. Back to Agenda Page 26 of 118  CITY COUNCIL MEETING AGENDA REPORT AGENDA ITEM NO. 3 SUBJECT: APPROVAL OF WARRANT REGISTER MEETING DATE: March 1, 2021 PRESENTED BY: Bonnie Johnson, City Manager RECOMMENDATION: Staff requests that the City Council move to approve the Warrant Register as presented. SUMMARY: The attached Check Register Report for City Council’s approval is as follows: a) Check Register Report with a total of $195,982.86 (Check Nos. 36604 - 36653) b) February 18, 2021 Payroll of $72,677.54 Back to Agenda Page 27 of 118 Page 28 of 118 Page 29 of 118 Page 30 of 118 Page 31 of 118  CITY COUNCIL MEETING AGENDA REPORT AGENDA ITEM NO. 4 SUBJECT: WAIVE FULL READING OF ANY PROPOSED ORDINANCES ON THE AGENDA MEETING DATE: March 1, 2021 PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk This permits reading the title only in lieu of reciting the entire text of the Ordinances. This does not take policy action on the Ordinances or approve or disapprove any Ordinances on the agenda. Back to Agenda Page 32 of 118  CITY COUNCIL MEETING AGENDA REPORT AGENDA ITEM NO. 5 SUBJECT: TREASURER’S REPORT FOR THE QUARTER ENDED DECEMBER 31, 2020 MEETING DATE: March 1, 2021 PREPARED BY: Bonnie Johnson, City Manager RECOMMENDATION: That the City Council receive and file the Investment Report for the Quarter ended December 31, 2020. BACKGROUND/DISCUSSION: Pursuant to Council Resolution No. 2020-36 approved on August 8, 2020, the Quarterly Treasurer’s Report is hereby submitted. The report complies with the aforementioned Council resolution, as well as Government Code Section 53646. The significant transactions during the quarter were the following: • LAIF interest for the quarter ended December 31, 2020 was credited to the City’s LAIF account in January in the amount of $34,874.83. In comparison, the interest earned in the same quarter for the previous year was $91,417.41. This is attributable to an interest rate decrease from 2.043% to 0.540%. • Excess cash in the amount of $400,000 was transferred on October 28, 2020 from Bank of America General Checking to LAIF • Excess cash in the amount of $600,000 was transferred on December 22, 2020 from Bank of America General Checking to LAIF. • A transfer of $148,618.76 from Bank of America General Checking to BNY Mellon for debt service of Calimesa Financing Authority 2014 Tax Allocation Refunding Bonds on November 16, 2020. Back to Agenda Page 33 of 118 Page 34 of 118 Page 35 of 118 Page 36 of 118 Page 37 of 118  CITY COUNCIL MEETING AGENDA REPORT AGENDA ITEM NO. 6 SUBJECT: SECOND AMENDMENT TO AGREEMENT BETWEEN THE CITY OF CALIMESA AND NOBEL SYSTEMS, INC. TO PROVIDE ENTERPRISE CLOUD GEOGRAPHIC INFORMATION SYSTEMS SERVICES MEETING DATE: March 1, 2021 PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: Staff respectfully recommends that the City Council approve the Second Amendment to the Agreement between the City of Calimesa and Nobel Systems, Inc. to provide Enterprise Cloud Geographic Information Systems Services. BACKGROUND: At the June 15, 2020 meeting, City Council approved an Agreement between the City of Calimesa and Nobel Systems, Inc. for Professional Consulting Services for Enterprise Cloud Geographic Information Systems Services. The approved agreement included the following costs, based on a three (3) year agreement: Project Setup $4,800 (Onetime fee) GeoViewer Online Annual Subscription Fee (Enterprise License) $9,800 (Annual) GeoViewer Mobile Annual Subscription Fee (2+1 Free Licenses) $4,800 (Annual) GeoViewer for Public Access $4,800 (Annual) GPS Data Collection Module for all kinds of assets No Cost (Free) Training and Unlimited Technical Support No Cost (Free) Total fee for year one (1) $24,200, total fee for year two (2) $19,400 and total fee for year three (3) $19,400. At the November 16, 2020 meeting, City Council approved a first amendment to the agreement to increase the amount of subscriptions for the GeoViewer Mobile Application, as there was a need for use of the GeoViewer Mobile Application on the Emergency Vehicle Devices and an “unlimited” subscription was necessary to ensure the devices were equipped with the appropriate technology, during both emergency and non-emergency situations. The Annual Mobile App Subscription Fee for “unlimited” subscriptions increased the costs by $10,200 per year and the annual fee increased to $15,000. Resolution No. 2020-48 was approved by Council adopting a Fiscal Year 2020-2021 budget adjustment that included the appropriation from the General Fund for the purchase of additional subscriptions of the GeoViewer Mobile Application. DISCUSSION: This second amendment is necessary as there is a need for the implementation of a Work Order System within the Public Works Department, that will enable tracking of daily tasks, specific projects, supply and equipment inventory, costs associated with each daily task and specific projects that includes, but are not limited to, salaries, Back to Agenda Page 38 of 118 equipment and supplies. Implementation of the work order system will also allow for compliance of the City’s Risk Assessment Policies as required of PARSAC’s member entities and will provide information and proof of actions taken to minimize and/or eliminate risks throughout the City. Nobel Systems has developed a CMMS Work Order application that integrates with the GeoViewer online and Mobile Applications. This integration will create the work orders and allow the field crew personnel to update the work orders through the GeoViewer Mobile Application. The updated work orders will then be sent back to the GeoViewer CMMS and will be managed accordingly by the Supervisors. The Nobel Proposal for Services is attached as Attachment B. The City of Calimesa and Nobel Enterprises desire to amend the Agreement to provide for changes in Section 4 (License, Subscription and Payment) to add additional funds for a one- time fee in the amount of $10,200 for the GeoViewer CMMS Work Order Module and Annual Subscription Fee in the amount of $10,000. The Agreement should me amended as follows: Subsection 4A (of Section 4 – License, Subscription and Payment) is hereby amended to read as follows: 4A. The City agrees to pay Consultant as follows: ▪ Project setup (onetime fee) $4,800 ▪ GeoViewer Online Annual Subscription Fee $9,800 ▪ GeoViewer Mobile Annual Subscription Fee $15,000 ▪ GeoViewer for Public Access (Annual) $4,800 ▪ Project Setup CMMS Work Order Module (onetime fee) $10,200 ▪ CMMS Work Order Module Annual Subscription Fee $10,000 ▪ GPS Data Collection Module No Cost ▪ Training and Unlimited & Technical Support No Cost Subsection 4B (of Section 4 – License, Subscription and Payment) is hereby amended to read as follows: 4B. Consultant will submit a detailed annual invoice as follows: Total fee year one (1) $54,600. Total fee year two (2) $39,600. Total fee year three (3) $39,600. FISCAL IMPACT: The 2020-21 budget was amended by Resolution No. 2021-10 on March 1, 2021 to include an appropriation in the amount of $20,200 from the General Fund to Information Technology Fund 01-2100-7210. ATTACHMENTS: Attachment A: Second Amendment to Agreement with Nobel Systems, Inc. Attachment B: Nobel Proposal for Services Page 39 of 118 Page 40 of 118 Page 41 of 118 Page 42 of 118 Page 43 of 118 Page 44 of 118 Page 45 of 118 Page 46 of 118 Page 47 of 118 Page 48 of 118 Page 49 of 118 Page 50 of 118 Page 51 of 118 Page 52 of 118 Page 53 of 118 Page 54 of 118  CITY COUNCIL MEETING AGENDA REPORT AGENDA ITEM NO. 7 SUBJECT: RESIDENTIAL INFILL PRIORITY AREA OVERLAY ZONE PROJECT – PROFESSIONAL SERVICES AGREEMENT BETWEEN THE CITY OF CALIMESA AND ALBERT A. WEBB ASSOCIATES FOR PLANNING AND ENVIRONMENTAL SERVICES; ACCEPTANCE OF “BUILDING HOMES AND JOBS ACT” SB 2 PLANNING GRANT AWARD THROUGH THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (“HCD”) IN THE AMOUNT OF $160,000 AND AMENDMENT TO FISCAL YEAR 2020-2021 BUDGET TO INCLUDE ACCEPTANCE OF SB 2 GRANT FUNDS; ACCEPTANCE OF LOCAL EARLY ACTION PLANNING (“LEAP”) GRANT AWARD THROUGH THE STATE OF CALIFORNIA DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT (“HCD”) IN THE AMOUNT OF $65,000 AND AMENDMENT TO FISCAL YEAR 2020-2021 BUDGET TO INCLUDE ACCEPTANCE OF LEAP GRANT FUNDS MEETING DATE: February 16, 2021 PREPARED BY: Kelly Lucia, Planning Manager RECOMMENDATION: It is recommended that the City Council: 1. Approve a professional services agreement in the amount of $203,900 with Albert A. Webb Associates (“Webb”) for planning and environmental services to develop a residential infill priority area overlay zone. (Attachment A) 2. Adopt Resolution 2021-12 to accept $160,000 in SB 2 grant funds and amend the fiscal year 2020-21 budget to include acceptance of said grant funds and designate the City Manager as the authorized official to execute grant program agreements. (Attachment B) 3. Adopt Resolution 2021-13 to accept $65,000 in LEAP grant funds and amend the fiscal year 2020-21 budget to include acceptance of said grant funds and designate the City Manager as the authorized official to execute grant program agreements. (Attachment C) BACKGROUND/DISCUSSION: SB 2 Planning Grant In 2017, Governor Brown signed a 15-bill housing package aimed at addressing the State’s housing shortage and high housing costs. The package included the Building Homes and Jobs Act (SB 2), which established a funding source to increase the supply of affordable homes in California by collecting a $75 recording fee on real estate documents. These funds were made Back to Agenda Page 55 of 118 available to all local governments in California to help prepare, adopt, and implement plans that streamline housing approvals and accelerate housing production. On October 7, 2019, the City Council adopted CC Resolution 2019-48 authorizing application for, and receipt of, SB 2 Planning Grant Program Funds. Staff subsequently submitted an application to the State of California Department of Housing and Community Development (“HCD”) SB 2 program to prepare a “Residential Infill Priority Area Overlay Zone” (“Overlay”). The Overlay would up-zone certain residential properties identified by the City to allow higher density development including duplexes, townhomes, condos, and a limited amount of apartments by-right. Additional information regarding the proposed Overlay is provided below. The Overlay project as proposed was approved by HCD on February 6, 2020 (Attachment D). LEAP Grant On January 27, 2020, the California Department of Housing and Community Development (“HCD”) released a Notice of Funding Availability (“NOFA”) for approximately $119,040,000 as part of the Local Early Action Planning Grants Program (“LEAP”). The LEAP program provides funding to jurisdictions for the preparation and adoption of planning documents, process improvements that accelerate housing production, and facilitate compliance in implementing the sixth cycle of the Regional Housing Needs Assessment (“RHNA”). LEAP is part of the broader Program formerly known as the Local Government Planning Support Grants Program, which was established as part of the 2019-20 Budget Act. The 2019-20 Budget Act provides a spectrum of support, incentives, resources and accountability to meet California’s housing goals. The Local Government Planning Support Grants Program provides one-time grant funding to regions and jurisdictions for technical assistance, preparation and adoption of planning documents, and process improvements. The over-arching goals of the Program are to (1) accelerate housing production; and (2) facilitate compliance to implement the sixth cycle of the regional housing need assessment (RHNA). On July 20, 2020, the City Council adopted CC Resolution 2020-32 authorizing application for, and receipt of LEAP program funds. Staff subsequently submitted an application to HCD to supplement the grants funds previously awarded by the SB 2 grant. On January 27, 2021, staff was notified that the City of Calimesa was awarded $65,000 in LEAP funds. Infill Priority Area Overlay Zone Should Council authorize the recommended actions herein, the City will have a total of $225,000 available to develop the Infill Priority Area Overlay Zone as follows: Rezoning to Expand Housing Options (PPA, Rezone to permit-by right): The City will undertake a zoning code amendment to do the following: • Expand the number of residential zones that allow duplexes, condos, and townhomes by- right • Up-zone properties in various parts of the city to higher density residential districts • Develop an "Infill Priority Area" Overlay Zone • Complete a programmatic environmental clearance document for the above rezoning • Complete a general plan amendment consistent with the above rezoning The City estimates that approximately 400 additional units of residential capacity would be created through this activity. Additionally, the entitlement process for future applications would be reduced by 6-9 months based on the new zoning and CEQA clearance. Page 56 of 118 Professional Services Agreement The City solicited a proposal from its on-call CEQA consultant Albert A. Webb to complete the necessary planning and environmental services to develop the Overlay. Staff completed an evaluation of the proposal, found it to be satisfactory, and prepared the attached professional services agreement (Attachment A) for Council’s consideration. Webb’s fee is $203,900 . The remaining grant balance of $21,100 will be utilized as contingency funding for the project and for City staff time. Should Council award the contract, Webb’s fee would be paid from SB 2 and LEAP grant funding as discussed above. FISCAL IMPACT: This project does not propose to use any City funding as there is no required local match on either grant. With Resolution 2021-12 and Resolution 2021-13, staff is recommending that $160,000 (SB 2) and $65,000 (LEAP), respectively, be accepted and the required additional appropriations be recorded in accounts 18-3155-7210 in the amount of $160,000 and in account 18-3156-7210 in the amount of $65,000, respectively, for the consulting contract with Webb for planning and environmental services. ATTACHMENTS: Attachment A: Professional Services Agreement with Albert A. Webb Attachment B: Resolution 2021-12 Attachment C: Resolution 2021-13 Page 57 of 118 Page 58 of 118 Page 59 of 118 Page 60 of 118 Page 61 of 118 Page 62 of 118 Page 63 of 118 Page 64 of 118 Page 65 of 118 Page 66 of 118 Page 67 of 118 Page 68 of 118 Page 69 of 118 Page 70 of 118 Page 71 of 118 Page 72 of 118 Page 73 of 118 Page 74 of 118 Page 75 of 118 Page 76 of 118 Page 77 of 118 Page 78 of 118 Page 79 of 118 Page 80 of 118 Page 81 of 118 Page 82 of 118 Page 83 of 118 Page 84 of 118 Page 85 of 118 Page 86 of 118 Page 87 of 118 Page 88 of 118  CITY COUNCIL MEETING AGENDA REPORT AGENDA ITEM NO. 8 SUBJECT: LIBRARY COMMISSION APPOINTMENT MEETING DATE: March 1, 2021 PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That Council Member Hewitt appoint one member to the Library Commission and that the City Council ratify the appointment by a majority vote and adopt Resolution No. 2021-11 providing for the appointment made. SUMMARY: 1 vacancy exists on the Library Commission. A notice of vacancies was posted and published, and 1 application was received. Council Member Hewitt has informed the City Clerk that she is ready to make her appointment from the application received. One (1) vacancy exists on the Library Commission and shall be made by Council Member Hewitt and the appointee’s term will coincide with Council Member Hewitt’s term. An application for the Library Commission was received by Deborah Zylman. ATTACHMENTS: Attachment A: Resolution No. 2021-11 Attachment B: Citizen Service Application submitted by Deborah Zylman Back to Agenda Page 89 of 118 Page 90 of 118 Page 91 of 118 Page 92 of 118  CITY COUNCIL MEETING AGENDA REPORT AGENDA ITEM NO. 9 SUBJECT: SCAG 2021 GENERAL ASSEMBLY APPOINTMENT OF VOTING DELEGATE AND ALTERNATE VOTING DELEGATE MEETING DATE: March 1, 2021 PREPARED BY: Darlene Gerdes, Deputy City Manager/City Clerk RECOMMENDATION: That the City Council appoint a voting delegate and an alternate voting delegate to represent the City of Calimesa at the Virtual SCAG General Assembly on May 6, 2021. BACKGROUND: The City of Calimesa is a member of the Southern California Association of Governments. Annual membership dues have been budgeted for and paid in the amount of $850. The City has been invited to attend the SCAG Regional Conference & General Assembly, May 6, 2021 that will be held on a Zoom platform this year. SCAG requests that each City designate a voting delegate and an alternate delegate. The General Assembly Delegate Representative will have the opportunity to propose any policy matter for determination by the General Assembly in the form of a proposed Resolution. The Representative will also have the opportunity to propose revisions to the SCAG Bylaws. All proposed Resolutions and/or Bylaw revisions will be reviewed by SCAG’ Bylaws and Resolutions Committee, and thereafter the Regional Council before being considered at the Regional Conference and General Assembly business meeting. The business meeting is scheduled for Thursday, May 6, 2021 at the Regional Conference and General Assembly. Proposed Resolutions and/or SCAG Bylaw revisions are due no later than 5 pm on Friday, March 5, 2021. FISCAL IMPACT: None. Back to Agenda Page 93 of 118  CITY COUNCIL MEETING AGENDA REPORT AGENDA ITEM NO. 10 SUBJECT: COUNCIL DISCUSSION OF PROPOSED SENATE BILL 9 REGARDING INCREASED DENSITY IN SINGLE-FAMILY ZONES AND THE COVID-19 RELIEF BILL FOR STATE AND LOCAL FISCAL RECOVERY FUNDS MEETING DATE: March 1, 2021 PRESENTED BY: Mayor Pro Tem Linda Molina RECOMMENDATION: That City Council discuss the information presented and provide direction to staff regarding any desired future actions. BACKGROUND/DISCUSSION: Mayor Pro Tem Molina requested that the following two issues be brought before the City Council for discussion and possible action/direction to staff: • Senate Bill 9: Attached is a copy of Senate Bill 9 and an email received from the Riverside County Division of the League of California Cities regarding their opposition to the Bill. • COVID-19 Relief Bill for State and Local Fiscal Recovery Funds: Attached is an email received from the Riverside County Division of the League of California Cities regarding the $350 Billion COVID-19 Relief Bill for State and Local Fiscal Recovery Funds and the League’s support of the Bill, as well as a sample support letter that could be used as a template should the City Council desire to provide a letter of support to our Congressman as requested by the League. It should be noted that it is not yet clear exactly how much funding each City would receive or what costs would be eligible to be funded and how eligible amounts would be calculated; for example, loss of revenue due to decline in Transient Occupancy Tax and Sales Tax. Mayor Pro Tem Molina will be making an oral report on both of the items in this report. Back to Agenda Page 94 of 118 Page 95 of 118 Page 96 of 118 Page 97 of 118 Page 98 of 118 Page 99 of 118 Page 100 of 118 Page 101 of 118 Page 102 of 118 Page 103 of 118 Page 104 of 118 Page 105 of 118 Page 106 of 118 Page 107 of 118 Page 108 of 118 Page 109 of 118 Page 110 of 118 Page 111 of 118 Page 112 of 118 Page 113 of 118 Page 114 of 118 Page 115 of 118 Page 116 of 118 Page 117 of 118 Page 118 of 118