Visalia City Council Meeting Summary - February 5, 2024
Visalia City Council Meeting - February 5, 2024
On Monday, February 5, 2024, the Visalia City Council held a work session at 4:00 p.m. and a regular session at 7:00 p.m. at City Council Chambers, 707 W. Acequia. Mayor Brian Poochigian, Vice Mayor Brett Taylor, and Council Members Emmanuel Hernandez Soto and Liz Wynn were present; Council Member Steve Nelsen was absent. The work session covered the state legislative forecast, FY 2022-23 audits, and the Annual Comprehensive Financial Report (ACFR). The regular session included ceremonial swearing-ins, public comment, and approval of the consent calendar. The meeting adjourned at 7:18 p.m.
Work Session: State Legislative Presentation
- Nielsen, Merksamer, Parrinello, Gross & Leoni (NMPGL) lobbyists John Moffatt and Michelle Rubalcava presented 2023 state legislative results and a 2024 forecast. No formal action was requested.
- In 2023, 2,662 bills were introduced; about 890 were signed by the Governor. NMPGL tracked 545 bills for Visalia, took positions on 26 bills, and reported 14 wins.
- The 2024 outlook focused on the state budget deficit (estimated at $68 billion by the Legislative Analyst's Office versus about $38 billion by the Governor), a possible climate bond, artificial intelligence, homelessness/housing, organized retail theft, and concerns about state erosion of local control.
- Council members asked about state funding opportunities and possible cost shifts to cities. Lobbyists said they would keep working on budget and grant opportunities, including DWR retention basin funding, and would advocate against one-size-fits-all mandates while acknowledging housing policy has moved toward less local control.
Annual Comprehensive Financial Report (ACFR)
- Staff presented the ACFR for FY 2022-23 (July 1, 2022 through June 30, 2023). Although the agenda listed the ACFR after the Measure T and Measure N audits, staff stated for the record that agenda item 4 would be presented before the measure audits, and the live presentation followed that order.
- The independent auditor, The Poon Group, issued an unqualified/clean opinion with no audit findings. The city has received 37 GFOA financial reporting awards and submitted this report on December 19, 2023.
- New GASB Statement 96 added $1.6 million in subscription-based IT assets and $0.8 million in liabilities.
- Top five general fund revenues grew 4% overall ($3.7 million): sales tax +2%, property tax +7%, franchise fees +17%, business license +13% (with about 5-6% estimated underlying growth after a clean-up), and transit occupancy tax down $55,000.
- General fund revenues exceeded expenditures by $21.6 million; after transfers, the surplus was $15.85 million. Transfers included $1.4 million to keep the emergency reserve at the 25% policy level, $4.5 million to the vehicle replacement fund, and $9.91 million to the civic center reserve fund.
- The emergency reserve ended the year at $19 million. Total governmental fund balance was $33.5 million; total enterprise fund balance was $444.6 million.
- During public comment, Barry Caplan asked about a possible discrepancy between earlier Airbnb testimony and ACFR revenue detail. Finance staff said Airbnb provides a lump-sum payment without address or night-level detail; a new permit process was implemented to improve tracking.
Measure T Compliance Audit
- Measure T is the voter-approved quarter-cent sales tax for enhanced police and fire services, split 60% police and 40% fire.
- M. Green and Company performed the annual compliance audit for the fiscal year ending June 30, 2023. The audit confirmed Measure T funds were used in accordance with the ballot measure, program guidelines, and expenditure plan.
- One finding was reported: a purchase order was not split correctly between funds, understating an account by $23; a journal entry was completed in FY 2022-23 to correct it.
- Revenues funded operations in both police and fire. The FY 2021-22 surplus was higher mainly because of a $475,000 transfer to the police Measure T vehicle replacement fund; the fire fund's FY 2022-23 result reflected a $1.5 million transfer to its vehicle replacement fund.
- The Citizens Advisory Committee reviewed the audit and had no additional comments.
- Motion by Vice Mayor Brett Taylor, seconded by Council Member Emmanuel Hernandez Soto, to approve as recommended. Carried 4-0 (Council Member Nelsen absent).
Measure N Compliance Audit
- Measure N is the voter-approved half-cent sales tax for essential city services. Its requirements include 10% of budgeted revenues to the economic uncertainty fund and 10% split 2% to youth programs and 8% to maintenance and emerging needs.
- M. Green and Company performed the annual compliance review/attestation. There were no audit findings.
- FY 2022-23 Measure N sales tax revenue was $19.5 million, down 1% from the prior year; total revenues were $19.9 million and total expenditures were $20.6 million, leaving an ending fund balance of about $36.5 million.
- Barry Caplan commented that the Measure N report is an attestation, not an audit, and asked the council to clarify whether that satisfies the voter-approved audit requirement. He also questioned whether Measure N committee votes since 2017 had been proper and asked that M. Green be called to discuss the attestation before approval.
- Council Member Liz Wynn read a statement from Mark Fulmer, former assistant superintendent, expressing that Measure N committee members take their work seriously and support the committee chair's comments, which had been addressed previously.
- Motion by Council Member Liz Wynn, seconded by Vice Mayor Brett Taylor, to approve as recommended. Carried 4-0 (Council Member Nelsen absent).
Ceremonial Swearing-In
- The council administered the oath of office to Jason Huckleberry as Engineering and Building Department Director, John Lollis as Assistant City Manager, and Michelle Speer as Administrative Services Director.
Public Comments & Testimony
- During the regular session, Barry Caplan (Visalia) congratulated John Lollis, commented on agenda item title format and jargon, and repeated his concern that the Measure N and Measure T compliance reports were described as attestations rather than audits.
- During the consent calendar comment period, Caplan called consent item 2 improved, said item 5 still contained jargon, and asked for a staff report on consent item 4 (Walnut Avenue/Lovers Lane design contract) and its effects on adjacent intersections. The council did not pull any consent items.
Consent Calendar
- The council approved the consent calendar in one motion by Vice Mayor Brett Taylor, seconded by Council Member Liz Wynn. The motion carried 4-0 (Council Member Nelsen absent). No items were pulled.
- Authorization to read ordinances by title only.
- Groundwater Recharge Basin G change order: approved Change Order No. 6 for well improvements in the amount of $265,065, with $175,707 appropriated from the Park Impact Fund.
- Authorization to submit CMAQ/CRP grant funding applications to the Tulare County Association of Governments (TCAG) for proposed capital improvement projects.
- Authorization for a professional design services contract with QK, Inc. for Walnut Avenue/Lovers Lane intersection and traffic signal improvements.
- Authorization to file Notice of Completion for the Goshen Street Rehabilitation Project (Goshen Ave from Shirk Street to Mooney Blvd).
- Second reading of Ordinance 2024-02 authorizing a parking agreement with Dr. Christopher J. Wood, DDS, MS, for use of 4 parking spaces at Mayor's Park.
- Sole source contract with Mintier Harnish, not to exceed $30,000, for Objective Design Standards for Single-Family Development, with up to $30,000 appropriated from the General Fund.
- Emergency contract with Aspen Rentals (Angleton, TX) for a 24-month belt filter press dewatering unit rental at $349,868, plus appropriation of $360,000 from the Wastewater Enterprise Fund (431).
Key Outcomes
- Accepted the FY 2022-23 Measure T Compliance Audit (4-0).
- Accepted the FY 2022-23 Measure N Compliance Audit (4-0).
- Received the FY 2022-23 Annual Comprehensive Financial Report; no formal action was required.
- Approved the consent calendar as a single 4-0 vote.
- No regular items or public hearings were scheduled. The closed session report was: nothing to report.
- Next council meetings: Tuesday, February 20, 2024 at 7:00 p.m. and Monday, March 4, 2024 at 7:00 p.m. at 707 W. Acequia.
Meeting Transcript
City Council. We're gonna begin with public comments. This is the time for our citizens to provide public comment on issues within the jurisdiction of the Vicella City Council and items listed on the closed session portion of the meeting. The council asked that you keep your comments concise and positive. Creative criticism presented with appropriate courtesy is welcome. Each speaker will be allowed three minutes and a timer will notify you when your time is expired. Please begin your comments by stating and spelling your name and providing your city of residence. This comments right now your chance to make a comments on anything that you would like at this time. So no no opportunity at the time each one comes up. We will have public comment at each time of each item. Okay. All right, that's what I'll speak at that time then for thank you. Right, seeing a little more public uh comment or take to work session. Um number one, slate legislative presentation. We see presentation from Nielsen, Marksmer, and Pornello Grosso Leone on 2023 state legislative activity and forecastle state legislative activity for 2024. Uh thank you, Mayor, Council, uh Devin Jones, economic development manager. Um, here uh tonight you have uh John Moffat and Michelle Rubikava from Nielsen Merksmare, our state lobbyist group. And they're gonna give an update on the year and kind of some forecasting of the year uh in front of us, and then we would like any kind of direction. There's no action item tonight, but if there's any direction for the year ahead or platform amendments, we would welcome those comments from council. Mr. Mayor, members of the council, John Moffat from Nielsen Merksimer. Uh, as Devin said, we represent you in the city of Sacramento and in the state legislature and all the uh regulatory agencies up there. We uh appreciate the opportunity to be here tonight, give you a little bit of a rundown on uh the activities and bills and issues we dealt with on bit on the city's behalf in 2023, and then uh give you a little bit of a look ahead based on what we know so far. We're about a month into the 2024 legislative year, but give you an idea of what we're hearing and seeing and and thinking might be big issues this year, and then as Devin said, uh happy to answer any questions and and take any input from the council and direction on uh where you'd like us to put our efforts in the year ahead. So uh as was already said, um, we actually have one other member of our team, Jeff Neal, who uh started with our firm two years ago. Two years ago, came to us from CSAC, has a great background in local government and the intersection of of state issues, county government, city government. Um we thought maybe bringing three down today might be a little bit of overkill. So but if you want, we're more than happy to bring Jeff next year. He's a very nice man. Uh two main areas of of advocate advocacy on your behalf in the legislative branch in this assembly and Senate, and then over in the executive branch, helping the city from time to time on issues as they arise at the airboard, the water board, DWR, etc. etc. Uh a little bit of a rundown there on some of those additional regulatory issues over the last couple of years, obviously, Sigma and implementation of that program has been uh a big issue for the city as well as others. So you know, assisting where we can and guiding through the various issues, whether it's at DWR or the state water board on sort of their authority, which kind of bounces back and forth depending on what what part of that issue you're talking about, outdoor water conservation and the threatened pending um used to be in existence, then kind of went away for a little bit uh once we got some good precipitation on outdoor water conservation. So something that we're keeping our eye on on a going forward basis. Uh homeless shelters and funding. We're gonna talk more about that in the industrial park energy needs there. Uh got a great tour from Devin today on all the great things that are happening happening out at the industrial park, and so keeping an eye on those things, and then you know, some upcoming issues that we're gonna see this year, uh climate bond, and then also artificial intelligence and some other uh issues that we think are gonna be hot topics this year. So looking back a little bit in 2023, you'll recall you know, California operates in a two-year legislative session. 2023 was the first year of this legislative session. Uh last year, around 2,662 bills were introduced, the bulk of those in the assembly. Um when those bills are introduced, we review all of them on your behalf and identify the ones that we think that may impact the city or are uh related to issues that that the city and the council may care about. Um of those 2,662 bills, a little over a thousand of them uh made it through the entire legislative process and got down to the governor, and then he signed about 890 of them. Uh so about a 15% veto rate uh for Governor Newsom, which is actually historically high for Governor Newsom. In the past couple years, um, you know, he has not he has not vetoed that many bills, but he actually vetoed quite a few last year, largely under the um under the idea of the state budget uh issue that uh folks could see was coming, and and we're gonna talk more about that here in a couple minutes, and is obviously upon us now with um the governor's may rebuy or uh may excuse me, the governor's original budget proposal, which he released about two and a half, three weeks ago for the city of Visalia of those two thousand six hundred and sixty-two bills. We identified 545 of them as ones that may uh have the city may have an interest in. Um again, just part of the funneling process. We we look at all those bills, we identify the ones the city may care about, they go through Leslie, they go through Devon. I'm sure this year John will be a part of that process as well. They go to the department heads, and then we take our direction on what are those bills that you want us to engage on uh in the legislative process. We ended up with 26 bills with uh with with positions in this last year.
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