20230425 Business and Industry Commission Agenda Packet (Special)
Special Business and Industry Commission Meeting Agenda April 25, 2023
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Agenda
City of Vernon
Special Business and Industry Commission Meeting
Tuesday April 25, 2023, 4:00 PM
City Hall, Council Chamber
4305 Santa Fe Avenue, Vernon, California
Duncan Sachdeva, Chair
Hector Morfin, Vice Chair
Cathy Browne, Commissioner
Jack Cline, Commissioner
Thomas Condon, Commissioner
Crystal Larios, Commissioner
Douglas Williams, Commissioner
The public is encouraged to view the meeting at https://www.cityofvernon.org/webinar-bic or by
calling (408) 638-0968, Meeting ID 819-2911-5921#. You may address the Commission via Zoom
or submit comments to PublicComment@cityofvernon.org with the meeting date and item number
in the subject line.
CALL TO ORDER
FLAG SALUTE
ROLL CALL
APPROVAL OF AGENDA
PUBLIC COMMENT
Members of the public interested in addressing the Commission during this Special meeting may
address any item which has been described in the notice of this Special Meeting in accordance with
Government Code Section 54954.3(a).
PRESENTATIONS
1. Fiscal Year 2022-23 Budget Overview
Recommendation:
No action required by the Business and Industry Commission. This is a presentation only.
2. Vernon Public Utilities Financial Update
Recommendation:
No action required by the Business and Industry Commission. This is a presentation only.
Special Business and Industry Commission Meeting Agenda April 25, 2023
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CONSENT CALENDAR
All matters listed on the Consent Calendar are to be approved with one motion. Items may be
removed from the Consent Calendar for individual consideration. Removed items will be considered
immediately following the Consent Calendar.
3. Meeting Minutes
Recommendation:
Approve the March 15, 2023 Special Business and Industry Commission meeting minutes.
ORAL REPORTS
4. Brief Reports, Announcements, or Directives to Staff
ADJOURNMENT
On April 20, 2023, the foregoing agenda was posted in accordance with the applicable legal
requirements. Regular and Adjourned Regular meeting agendas may be amended up to 72 hours
and Special meeting agendas may be amended up to 24 hours in advance of the meeting.
Business and Industry Commission Agenda Report
Meeting Date:April 25, 2023
From:Scott Williams, Director of Finance
Department:Finance
Submitted by:Angela Melgar, Finance Manager
Subject
Fiscal Year 2022-23 Budget Overview
Recommendation
No action required by the Business and Industry Commission. This is a presentation only.
Background
The economic outlook is one of uncertainty. In response to the persistent inflation, the Fed has
increased interest rates, which alongside the recent banking instability, has led to tightening
credit conditions, housing market disruptions, and softening business investment activity.
Maintaining the City’s reserves during the current and upcoming fiscal years will be key to
continuing to provide essential City services without disruption throughout potential revenue
decreases and/or increased costs.
General Fund
At the mid-year point of the current fiscal year, almost half of the cumulative budgeted revenues
were received as opposed to about 41% of budgeted total expenditures. Due to the timing of
disbursements, some revenue streams are not linear throughout the year. For example, property
and parcel taxes were below the midpoint budgeted total. Conversely, at the mid-year point, utility
user tax, franchise and agreements, and license and permits revenue categories received over
50% of the budgeted amounts for FY 2022-23. Investment income also exceeded budgeted
expectations due to the rapid increase of interest rates. Intergovernmental revenues only
reached 15% of the budgeted amount; however, these revenues reimburse corresponding
approved Public Works expenditures that have been deferred. Salaries and benefits and
maintenance and operations expenditure categories were at about the 50% level; however, the
capital projects and equipment category was only at 8% of the budgeted amount due to deferred
projects, limited availability of equipment, and other postponed capital expenditures.
Enterprise Funds
As of December 31, 2022, Electric revenues were at 61%, Gas revenues were at 57%, and
charges for services in the Water Fund were at 48% of budgeted amounts. Fiber Optic revenues
were at 30% of budgeted revenue due to the timing of billing. VPU continues to look for
opportunities to operate its systems efficiently while at the same time addressing infrastructure
needs and rising energy costs. As of mid-year, Fiber and Water Funds were below 50% of
budgeted expenditures, Gas was at about 50%, and Electric was at 64% of budgeted
expenditures.
Fiscal Impact
There is no fiscal impact associated with this report.
Attachments
None.
Item 1 Page 1 of 1
Business and Industry Commission Agenda Report
Meeting Date:April 25, 2023
From:Todd Dusenberry, General Manager of Public Utilities
Department:Public Utilities
Submitted by:Adriana Ramos, Administrative Analyst
Subject
Vernon Public Utilities Financial Update
Recommendation
No action required by the Business and Industry Commission. This is a presentation only.
Background
The Fiscal Year 2023-24 Budget addresses several challenges including significantly higher
inflation when compared to historical averages, supply chain issues, higher energy and natural
gas costs, and investing in our utility infrastructure to continue to provide safe and reliable
service. Additionally, the budget must address revenue challenges in the electric, water, and
natural gas funds. Currently, staff is in the process of completing an Electric Cost of Service
Study that is expected to be presented to City Council before the end of Fiscal Year 2022-23.
Staff has thoroughly reviewed its operating and capital budget requirements for Fiscal Year 2023-
24 and made reductions without impacting service and reliability standards.
Fiscal Impact
There is no fiscal impact associated with this report.
Attachments
None.
Item 2 Page 1 of 1
Business and Industry Commission Agenda Report
Meeting Date:April 25, 2023
From:Lisa Pope, City Clerk
Department:City Clerk
Submitted by:Sandra Dolson, Administrative Secretary
Subject
Meeting Minutes
Recommendation
Approve the March 15, 2023 Special Business and Industry Commission meeting minutes.
Background
Staff has prepared and submits the minutes for approval.
Fiscal Impact
There is no fiscal impact associated with this report.
Attachments
1. March 15, 2023 Special Meeting Minutes
Item 3 Page 1 of 4
MINUTES
VERNON BUSINESS AND INDUSTRY COMMISSION
SPECIAL MEETING
THURSDAY, MARCH 15, 2023
COUNCIL CHAMBER, 4305 SANTA FE AVENUE
CALL TO ORDER
Chair Sachdeva called the meeting to order at 3:34 p.m.
FLAG SALUTE
Chair Sachdeva led the Flag Salute.
ROLL CALL
PRESENT:
Duncan Sachdeva, Chair
Hector Morfin, Vice Chair
Cathy Browne, Commissioner
Thomas Condon, Commissioner
Douglas Williams, Commissioner
ABSENT:
Jack Cline, Commissioner
Crystal Larios, Commissioner
STAFF PRESENT:
Zaynah Moussa, City Attorney
Lisa Pope, City Clerk
Scott Williams, Finance Director
APPROVAL OF THE AGENDA
By acclamation, the Commission approved the agenda.
PUBLIC COMMENT
None.
Item 3 Page 2 of 4
Special Business and Industry Commission Meeting Minutes Page 2 of 3
March 15, 2023
RECESS
Chair Sachdeva recessed the meeting at 3:37 p.m. The meeting reconvened at 4:16
p.m. with all Commissioners present except Commissioners Cline and Larios.
PRESENTATIONS
1. Sales and Property Tax Revenue Update
Recommendation: No action required by Business and Industry Commission. This is a
presentation only.
Finance Director Williams presented the staff report.
In response to Commission questions, Finance Director Williams provided the
estimated revenue from the Sales Tax and Property Tax; discussed the portion of
property tax received by the City, impacts to real estate values and interest rates from
the pandemic, current reserves, road repair street maintenance amount, and the City’s
sales tax revenue share.
The Commissioners expressed a desire to assist the City in its efforts to secure
additional property tax revenues, considering the inequity of distribution of sales and
property tax revenues.
CONSENT CALENDAR
MOTION
Commissioner Condon moved and Commissioner Browne seconded a motion to
approve the Consent Calendar. The question was called and the motion carried 5-0,
Commissioners Cline and Larios absent.
The Consent Calendar consisted of the following item:
3. Approval of Minutes
Recommendation: Approve the July 14, 2022 Special Business and Industry
Commission meeting minutes.
NEW BUSINESS
3. General Fee Schedule Update for Fiscal Year 2023-24
Finance Director Williams presented the staff report.
MOTION
Vice Chair Morfin moved and Commissioner Condon seconded a motion to receive and
file the proposed general fee schedule that will be presented to Council for adoption on
April 4, 2023. The question was called and the motion carried 5-0, Commissioners Cline
and Larios absent.
Item 3 Page 3 of 4
Special Business and Industry Commission Meeting Minutes Page 3 of 3
March 15, 2023
ORAL REPORTS
4. Brief Reports, Announcements, or Directives to Staff
None.
ADJOURNMENT
With no further business, Commissioner Sachdeva adjourned the meeting at 4:55 p.m.
________________________
DUNCAN SACHDEVA, Chair
ATTEST:
_________________________
LISA POPE, Secretary
(seal)
Item 3 Page 4 of 4