City Council

Item No.: G-2 CITY OF CORNING SPECIAL CITY COUNCIL CLOSED SESSION MINUTES TUESDAY, MARCH 14, 2023 CITY COUNCIL CHAMBERS 794 THIRD STREET A. CALL TO ORDER: 3:00 p.m. B. ROLL CALL: Council: Dave Demo Jose “Chuy” Valerio Shelly Hargens Lisa Lomeli Mayor: Robert Snow All members of the City Council were present. C. PUBLIC COMMENTS: None. D. REGULAR AGENDA: 1. CONFERENCE WITH LABOR NEGOTIATOR PURSUANT TO SECTION 54957.6: Agency Negotiator: Greg Einhorn, Labor Relations Consultant Bargaining Units: Public Safety. E. ADJOURN TO REGULARLY SCHEDULED CITY COUNCIL MEETING AND REPORT ON CLOSED SESSION: Closed at: 4:05 p.m. Adjourned to Regular Meeting at 6:30 p.m. and Mayor Snow announced that Council provided direction to Agency Negotiator. CITY COUNCIL REGULAR MEETING MINUTES TUESDAY, MARCH 14, 2023 CITY COUNCIL CHAMBERS 794 THIRD STREET, CORNING, CA 96021 A. CALL TO ORDER: 6:30 p.m. B. ROLL CALL: Council: Dave Demo Jose “Chuy” Valerio Shelly Hargens Lisa Lomeli Mayor: Robert Snow All members of the City Council were present. C. PLEDGE OF ALLEGIANCE: Led by the City Manager. D. INVOCATION: Led by Karen Burnett. E. PROCLAMATIONS, RECOGNITIONS, APPOINTMENTS, PRESENTATIONS: 1. Proclamation: March 2023 – General Aviation Appreciation Month. Requested by Steve Fong, Communications Director, Alliance for Aviation Across America. City Clerk Lisa Linnet read the Proclamation and stated that it would be scanned and sent to Mr. Fong. F. PUBLIC COMMENTS AND BUSINESS FROM THE FLOOR: Lisa Linnet: Mrs. Linnet responded to statements made by Police Officers Association (POA) representative James White at the February 28th City Council meeting. As someone that sits in on Bargaining Unit Negotiations, all concerns voiced during negotiations are relayed to the City Council by the City’s contracted Labor Negotiator Attorney Greg Einhorn…not City Manager Miller. The City Manager is present in negotiations to respond to questions from the Union/Bargaining Unit Representatives regarding Budget, approved funding, etc. In response to the POA’s statement of bargaining in “good faith and willingness to negotiate,” Mrs. Linnet stated her belief that the hurtful and premeditated character assignation of City Manager Miller is NOT bargaining in “good faith,” but rather a vicious bullying tactic with no regard for the potential career/personal damages to Ms. Miller. She further stated that the verbal attack, in her opinion consisted of innuendo, some falsehoods, and one-sided half-truths as the whole picture relating to the altering of timesheets was not verbally disclosed; nor was the fact that the issue had been discussed prior with the Police Chief as well as the City Council who directed Ms. Miller’s subsequent actions. She further stated her belief that it was a sad attempt at public manipulation…all with the end goal of obtaining higher wages. Mrs. Linnet responded to other statements made by the POA at the previous meeting and in closing stated that she has worked for the City for over 22 years and in that time worked with many within the POA. She admired, respected, and at times publicly defended them, the job that they do, their conduct, and moral values. However, following the statement read at the last meeting, and more importantly what she believes to be the reasons behind the statement, she is strongly disappointed. Officer Curiel: Spoke on behalf of the POA. He stated that the POA would like to meet with the City Council. City Attorney Collin Bogener responded explaining the process. THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER  Item No.: G-2 Audience Member: Stated she is so proud of our City and the improvements taking place in the City, i.e., the new light posts, the power boxes, etc.; they really make a difference. She is a 40-year resident and loves the community we have. She voiced her appreciation for the Police Department and her belief that money spent on their training is of value to the City. Councilor Demo asked the City Attorney if Council could meet with the POA after negotiations. City Attorney Bogener stated that they can, however legally they would have to meet in open session. Councilor Lomeli also asked questions regarding whether the Council could meet with the POA as she feels there is a breakdown in communications. Blaine Smith: Stated that he was disheartened about issues discussed at the previous meeting. He thanked the local Police Officers for their services and response to drag racing on Fig Lane. He asked that the City Council work with the Police Department to support them. Mayor Snow: Reinforced the fact that he was taken back at the last meeting by the comments made directed at the City Manager. He clarified that she has acted at the direction of the City Council. G. CONSENT AGENDA: It is recommended that items listed on the Consent Agenda be acted on simultaneously unless a Councilmember or members of the audience request separate discussion and/or action. 2. Waive reading, except by title, of any Ordinance under consideration at this meeting for either introduction or passage, per Government Code Section 36934. 3. Waive the reading and approve the Minutes of the following meetings with any necessary corrections: a) February 28, 2023 Joint Meeting of the City Council and City Commissions: b) February 28, 2023 Regular Meeting; and c) February 28, 2023 City Council Closed Session. 4. March 8, 2023 Claim Warrant in the amount of $460,179.20 . 5. March 8, 2023 Business License Report. 6. February 2023 Wages & Salaries: $394,545.86 7. February 2023 Treasurer’s Report. 8. February 2023 Building Permit Valuation Report in the amount of $796,089. 9. February 2023 City of Corning Wastewater Operations Summary Report. 10. Authorize payment of invoice #24373 in the amount of $5,090.53 to R.E.Y. Engineers for the West Street School ATP Connectivity Project Engineering and Environmental Services. 11. Authorize payment of invoice #24374 in the amount of $1,330 to R.E.Y. Engineers for the Olive View School ATP Connectivity Project Engineering and Environmental Services. 12. Authorize Transfer of Lights to New Life Assembly Church. 13. Approve Letter of Support to the County of Tehama seeking continuation services provided by multiple County Agencies at the Corning Healthcare District’s Meuser Building. Mayor Snow confirmed that the parking lot lights and poles reference in Consent Item G-12 were in fact those planned for demolition from the Proposition 68 Park Development Recreation Center & City Plaza Project south of City Hall. With no further discussion, Councilor Valerio moved to approve Consent Items 2-13; Councilor Hargens seconded the motion. Ayes: Snow, Demo, Valerio, Hargens, and Lomeli. Absent/Abstain/Opposed: None. Motion approved by a 5-0 vote. H. ITEMS REMOVED FROM THE CONSENT AGENDA: None. I. PUBLIC HEARINGS AND MEETINGS: None. J. REGULAR AGENDA: 14. Presentation and acceptance of the Annual City Audit for Fiscal-Year 2021/2022. City Manager Miller introduced contracted City Auditor, Don Reynolds who joined the meeting via ZOOM. Mr. Reynolds stated that a couple of things look a little different this year, however the information is the same, they just changed the order of presentation. He pointed out that half of the surplus is one time ARPA Funds that has been set aside for future contingencies. The City has done a good job and is keeping pace, which is good in this economy. He noted that the large expenditures listed was in the Parks and Recreation which is predominately grant related. If you discount the ARPA money the City really didn’t have much change. City Manager Miller confirmed that the ARPA funds have been allocated towards getting water & sewer to the west side of I-5 utilizing a Development Reimbursement Agreement that is listed further down on the Agenda for discussion and approval, and for the Council approved Awning Program. Councilor Demo moved to accept the Annual Audit for Fiscal Year ending June 30, 2022; Councilor Valerio seconded the motion. Ayes: Snow, Demo. Valerio, Hargens, and Lomeli. Absent/Abstain/Opposed: None. Motion approved by a 5-0 vote. 15. FY 2022/2023 Annual Mid-Year Budget Review and General Discussion. Presented by City Manager Kristina Miller who stated the purpose is to update the Council and the public regarding how the City is fairing financially at the mid-point of the fiscal year and largely THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER  Item No.: G-2 relies on information from the Fiscal Year (FY) mid-point which is December 31, 2022. She stated that the FY 2022/23 Budget projected total revenues (excluding transfers) of $17,318,275. She stated the total amount of proposed General Fund adjustments is $216,500 and presented the following information: ● Discretionary Funds: General Fund Revenues (including Measure A) at time of budget approval were expected to make up about 47% ($7,482,100) of total revenues. Sales tax (excluding Measure A Transactions & Use Tax) was projected to generate 51% of the total General Fund Revenue or $3,850,000. Sales tax and Measure A Tax combined total 59% of General Fund Revenue. The City Council maintains primary discretion over how the General Fund is expended. ● Non-Discretionary Funds: The remainder, about 53% ($9,836,175) of revenues originates from sources other than the General Fund Revenues and must be allocated (expended) for specific purposes such as grant funded projects, water, sewer, and street maintenance. Thes funds are referred to as “non-discretionary” because the Council has little choice regarding how they are spent. ● Projected Sales Tax: The City is heavily reliant on sales tax from fuel sales, , that said, the percentage of sales tax revenue from fuel sales has been decreasing significantly in the last six years. In fiscal year 2013/14 fuel sales tax represented 79% of total sales tax revenue compared to 33% in fiscal year 2021/22.  With sales tax data for two calendar quarters for FY 2022/23 (2nd & 3rd quarters of 2022) we are on target for meeting the $3.85 million budget for the General Fund and the $1,350,000 in Measure A tax. General Fund is expected to receive close, or just under the $3.85 mil., Measure A is expected to come in $100,000 higher than budgeted. City won’t receive 4th quarter totals until late March, and 1st Quarter in June. ● Transient Occupancy Tax (TOT): City has received 3 quarters of revenue; receipts are less than originally anticipated; propose decrease of $100,000 ($570,000). ● Vehicle License Fees: Should be greater than budgeted by approximately $87,000. ● Franchise Fees: Fees collected from PG&E, Comcast Cable TV, and Waste Management; expected to be as anticipated or slightly higher, no adjustments proposed. ● Building Permit/Plan Check Fees: Proposed increases for Building Permits is $20,000 and Plan Check increased by $10,000. ● Property Tax: Make up about 10% of General Fund and are expected to meet, or slightly exceed budget as projected, no adjustments proposed. ● Miscellaneous Proposed Adjustments: Police Misc. Income/Donations – increased to $23,000 due to grant revenue; Planning Permits/Applications – increased to $30,000 based on current receipts; Misc. Income – increased to $62,000 to reflect sale of 6th/Yolo St. property. For Non-Discretionary Funds (Enterprise Funds) she presented the following: ● Sewer Fund: Revenues are in line with the $2,204,500 budget projections. Sewer Fund expenditures are on target except for vehicle replacement due to bids coming in higher. Propose a $2,000 increase for vehicle replacement. An increase to Capital Replacement for be repair of damage to the main sewer line at Birch Creek/Hwy. 99W is to be determined, Staff will request a budget adjustment when final costs are determined. ● Water Fund: Water revenues through December 31st total $993,390, total projected for FY is $1,770,500; revenues are slightly above projections. Expenditures are on target except for vehicle replacement which must be increased due to higher bids. Communications is proposed to be increased by $2,000 due to postage rate increase; electricity is proposed to be increased by $105,000. While revenues are on target, the City is experiencing over $75,000 in bad debt as a result of not being able to shut off water for non-payment during the Pandemic. Should utility users not repay these debts in the next few months, the City will need to raise rates to remain in compliance with its rate covenant. City Manager Miller presented the review of Department Expenditures at the mid-year point stating they were as expected with the following exceptions: ● Personnel Costs: Expenditures for cash out of Police and Police Dispatch compensation time; propose to increase Police Comp Time Cashed by $40,000, and Police Dispatch Comp Time Cashed by $50,000. ● Solano Street Repairs: Propose increase of $403,466 due to repair costs exceeding amount budgeted. Future Expenditures: Ms. Miller then briefed the Council on expected future expenditures such as: ● Expected increase in cost for the Proposition 68 Recreation Center & City Plaza by $2 million due to construction cost increases since grant submittal. ● Additional Personnel in 2022/23:  1 FT Maintenance Worker/Meter Reader; 1 Police Officer; Promote 1 Police Officer to Sergeant; 1 Contracted Grant Administrator. ● Additional Personnel in 2023/24:  1 Detective; 1 FT Recreation Coordinator; 1 FT Planner; 1 Public Works Maintenance Worker. ● Additional Personnel in 2024/25:  1 Public Works Director  1 Recreation Assistant THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER  Item No.: G-2 ● Additional Personnel in 2025/26:  Three firefighter positions. She announced that the City has three new businesses going in, i.e., Grocery Outlet, Dutch Bros., and store going into the former Hatfield’s Hardware at the northwest corner of Solano and Toomes Avenue. A new subdivision, Magnolia Meadows near Maywood School, is being constructed. She stated the importance for the City to diversify revenue sources as the Truck Stops bring in upward of 1 million dollars in sales tax revenue each year and with the new movement to electric vehicles that could adversely affect the City’s tax revenues immensely. She also explained the potential effects of the increased impacts of UAL (Unfunded liability) and relayed the cost increases associated with UAL that is expected through 2029. Bottom Line: Ms. Miller stated that the total fund balance as of June 30, 2022 is $6,335,713 for the General Fund (including Measure A). These emphasized that the fund reserves are necessary to provide stability within the City during the next economic downturn, to fund strategic planning activities, offset construction cost increases for the new Recreation Center & City Plaza, fund emergencies & natural disaster emergency expenses, and future building replacement costs. Also, she stressed that the City must explore a means to pay down its UAL debt. She concluded by stating that the City is in a much better fiscal condition because of Measure A Revenue. We can now begin as part of our strategic planning process, to focus efforts and budget priorities on improvements of value to the Community, while keeping in mind existing staffing needs and workload levels. Councilor Hargens moved to approve the proposed Budget Adjustments as depicted in Exhibit A & B and receive the Mid-Year Budget Report as presented. Councilor Demo seconded the motion. Ayes: Snow, Demo. Valerio, Hargens, and Lomeli. Absent/Abstain/Opposed: None. Motion approved by a 5-0 vote. 16. Review and adopt the proposed City of Corning Recreation Code of Conduct Policy. Presented by City Manager Kristina Miller. Councilor Demo moved to approve the proposed City of Corning Recreation Code of Conduct, direct Staff to obtain a signed copy of the Policy upon completion of class registration and authorize posting of the Policy on the City’s website. Councilor Valerio seconded the motion. Ayes: Snow, Demo. Valerio, Hargens, and Lomeli. Absent/Abstain/Opposed: None. Motion approved by a 5-0 vote. 17. Award the Architectural and Engineering Design Services Contract to COAR Design Group in the amount of $898,000 for the City of Corning City Plaza and Recreation Center Project. Presented Public Works Contract Consultant/City Engineer Robin Kampmann. The Council was briefed on services sought under this Contract and informed that two Statements of Qualifications (SOQ’s) for this project had been received, one from PBK, the other from COAR Design Group. Following interviews, Staff determined that COAR ranked higher. The initial cost proposed by COAR Design Group was $1,055,934; following discussion with their representatives, this cost was negotiated down to $898,000. The council was informed that the project would be funded by the Department of Parks and Recreation Statewide Park Development and Community Revitalization Program of 2018 grant funding for the Downtown Recreation Center and Plaza Project. Following discussion, Councilor Demo moved to award the Architectural and Engineering Design Services Contract to COAR Design Group in the amount of $898,000 for the City of Corning City Plaza and Recreation Center Project and authorize the City Manager to sign the Contract. Councilor Hargens seconded the motion. Ayes: Snow, Demo. Valerio, Hargens, and Lomeli. Absent/Abstain/Opposed: None. Motion approved by a 5-0 vote. 18. Authorize the issuance of a “Request for Proposals” (RFP’s) for a Water and Sewer Extension Development Reimbursement Agreement for extending water and sewer infrastructure to the westside of Interstate 5. Presented by City Manager Kristina Miller who explained that the City of Corning received $1,844,396 in American Rescue Plan Act of 2021 appropriated Coronavirus State and Local Fiscal Recovery Funds. She stated that the City has been working on two crossings to expand water & sewer infrastructure to the westside of Interstate-5 for years. City Council approved use of $1,594,396 of these funds to fund a Reimbursement Agreement for a water & sewer crossing, whereby Developers would fund the cost of the bore with the City reimbursing them for all, or a great portion of the work after it is completed. She explained that the development of the west side of Interstate-5 has been hindered by lack of water & sewer infrastructure and has resulted in major development projects pulling out after realizing there is no infrastructure in place. This has resulted in potential lost tax revenue for the City. She further explained that as the State transitions to electric vehicles, the City is at risk of losing a major tax revenue source for the City…sales tax from fuel. The City must diversify its sources to provide long-term fiscal stability. Mayor Snow asked about time schedule and preference, is there a time frame from award to completion that is required? He was informed that it could be included in the Agreement documents. City Attorney Bogener stated that some language is currently included but we can make it stronger. Councilor Hargens moved to authorize the issuance of a request for proposals for a Water and Sewer Extension Development Reimbursement Agreement. Councilor Valerio seconded the THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER  Item No.: G-2 motion. Ayes: Snow, Demo. Valerio, Hargens, and Lomeli. Absent/Abstain/Opposed: None. Motion approved by a 5-0 vote. K. ITEMS PLACED ON THE AGENDA FROM THE FLOOR: None L. COMMUNICATIONS, CORRESPONDENCE, AND INFORMATION: None. M. REPORTS FROM MAYOR AND COUNCIL MEMBERS: City Councilmembers will report on attendance at conferences/meetings reimbursed at City expense (Requirement of Assembly Bill 1234). Demo: No meetings attended this month yet. He announced that the new Senior Center Board was sworn in earlier this month. Lomeli: Nothing. Hargens: Reported on her attendance at the Tehama County Solid Waste Management Board Meeting. Valerio: Reported that the Corning Library will have a book sale May 6th from 9-4 pm. Corning Christian Assistance has moved to the Senior Center on 4th Street. Snow: Nothing. N. ADJOURNMENT: 7:45 p.m. ________________________ Lisa M. Linnet, City Clerk THE CITY OF CORNING IS AN EQUAL OPPORTUNITY PROVIDER AND EMPLOYER