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Home My WebLink About04.28.2022 AMENDED Finance Committee Packet oaf SARj SARATOGA CITY COUNCIL FINANCE COMMITTEE 956 gC1FO April 28, 2022 � RN�P 3:30 P.M. REGULAR MEETING AMENDED AGENDA • 04/28/2022 ITEM 2 PRESENTATION SLIDES ADDED • 04/28/2022 ATTACHMENT A REVISED Teleconference/Public Participation Information to Mitigate the Spread of COVID-19 This meeting will be held entirely by teleconference. All members of the Committee and staff will only participate via the Zoom platform using the process described below. The meeting is being conducted pursuant to recent amendments to the teleconference rules required by the Ralph M. Brown Act allowing teleconferencing during a proclaimed state of emergency when local officials have recommended social distancing. The purpose of the amendments is to provide the safest environment for the public, elected officials, and staff while allowing for continued operation of the government and public participation during the COVID-19 pandemic. Members of the public can view and participate in the meeting by: 1. Using the Zoom website https://us02web.zoom.us/j/84116358191 or Webinar ID: 841 1635 8191 and raising their hand to speak on an agenda item when directed by the Mayor. 2. Calling 1.669.900.6833 or 1.408.638.0968 and pressing *9 to raise their hand to speak on an agenda item when directed by the Mayor. The public will not be able to participate in the meeting in person. Written Communication Members of the public can send written comments prior to the meeting by commenting online at www.saratoga.ca.us/fc prior to the start of the meeting. These emails will be provided to the members of the Council and will become part of the official record of the meeting. Public Comment Members of the public may comment on any item for up to three (3) minutes. The amount of time for public comment may be reduced by the Mayor. Meeting Recording Information City Council Finance Committee Agenda April 28, 2022 Page 1 In accordance with the Saratoga City Council's Meeting Recording Policy, the City Council Finance Committee Meetings are recorded and made available to the public following the meeting on the City website. CALL TO ORDER ROLL CALL ORAL COMMUNICATIONS ON NON-AGENDIZED ITEMS Any member of the public may address the Committee about any matter not on the agenda for this meeting for up to three (3) minutes. The law generally prohibits the Committee from discussing or taking action on such items. The Committee may choose to place the topic on a future agenda. AGENDA ITEMS 1. Finance Committee Minutes Recommended Action: Review and approve the minutes for the March 24, 2022 meeting. Finance Committee Minutes 2. FY23 Budget Preview Memo Budget Preview Presentation Recommended Action: Receive FY23 Budget Preview Information. FY23 Budget Preview Budget Preview Presentation Slides 3. Road and Facility Replacement Reserve Proposed Policy Update Memo Attachment A- Road and Facility Replacement Reserve Policy Attachment B - Redline Proposed Road and Facility Reserve Policy Recommended Action: Receive and review updated policy and provide direction to staff. Memo-Proposed Road and Facility Replacement Reserve Policy Attachment A- Proposed Road and Facility Reserve Policy Attachment B - Redline Proposed Road and Facility Reserve Policy ADJOURNMENT City Council Finance Committee Agenda April 28, 2022 Page 2 CERTIFICATE OF POSTING OF THE AGENDA, DISTRIBUTION OF THE AGENDA PACKET, COMPLIANCE WITH AMERICANS WITH DISABILITIES ACT I, Gina Scott, Administrative Analyst for the City of Saratoga, declare that the foregoing agenda for the meeting of the City Council Finance Committee of the City of Saratoga was posted and available for public review on April 25, 2022, at the City of Saratoga, 13777 Fruitvale Ave., Saratoga, CA 95070, and on the City's website at www.saratoga.ca.us. Signed this 251h day of April 2022 at Saratoga, California. Gina Scott, Administrative Analyst In accordance with the Ralph M. Brown Act, copies of the staff reports and other materials provided to the Committee by City staff in connection with this agenda, copies of materials distributed to the Committee concurrently with the posting of the agenda, and materials distributed to the Committee by staff after the posting of the agenda are available on the City website at www.saratoga.ca.us and are available for review in the office of the City Clerk at 13777 Fruitvale Avenue, Saratoga, California. In compliance with the Americans with Disabilities Act and the Governor's Executive Order, if you need assistance to participate in this meeting, please contact the City Clerk at bavrit@saratoga.ca.us or calling 408.868.1216 as soon as possible before the meeting. The City will use its best efforts to provide reasonable accommodations to provide as much accessibility as possible while also maintaining public safety. [28 CFR 35.102-35.104 ADA title 11] City Council Finance Committee Agenda April 28, 2022 Page 3 MINUTES SARATOGA CITY COUNCIL FINANCE COMMITTEE REGULAR MEETING MARCH 24, 2022 CALL TO ORDER The meeting was called to order at 3:30 p.m. via Zoom. ROLL CALL Present: Mayor Tina Walia, Vice Mayor Kookie Fitzsimmons, Council Members Mary-Lynne Bernald, Yan Zhao Also Present: James Lindsay, City Manager Crystal Bothelio, Assistant City Manager Nick Pegueros, Administrative Services Director Agnes Pabis, Finance Manager Gina Scott, Administrative Analyst ORAL COMMUNICATIONS ON NON-AGENDIZED ITEMS None AGENDA ITEMS 1 . Finance Committee Minutes Recommended Action: Review and approve the minutes for the February 17, 2022 meeting. FITZSIMMONS/WALIA MOVED TO APPROVE THE MINUTES FOR THE FEBRUARY 17, 2022 MEETING. MOTION PASSED BY VERBAL ROLL CALL. AYES: FITZSIMMONS, WALIA. NOES: NONE. ABSTAIN: NONE. 2. Review Financial Policies Recommended Action: Receive and review policies and provide direction to staff. Administrative Services Director Nick Pegueros presented report on current policies and suggested edits. WALIA/FITZSIMMONS MOVED TO ASK STAFF TO WORK ON POLICY LANGUAGE KEEPING SOME OF THE CONTEXT AND MODIFYING LANGUAGE TO REFLECT THE INTENT OF BOTH THE ROADS AND FACILITY REPLACEMENT FOR THIS RESERVE GOING FORWARD, IN A MANNER THAT IS EASY TO READ: KEEPS HISTORICAL CONTENT IN PLACE AND THE PCI GOAL AT 70 UNDERSTANDING THAT THERE IS A LOT OF WORK AHEAD: AND, ALLOW FOR City Council Finance Committee Minutes - March 24, 2022 Page 1 3 ADDITIONAL FUNDS TO BE AVAILABLE TO REDUCE THE DECLINE OF THE PCI OF THE ROADS. MOTION PASSED BY VERBAL ROLL CALL. AYES: FITZSIMMONS, WALIA. NOES: NONE. 3. Format Update to Monthly Treasurer's Report Recommended Action: Receive and review Treasurer's Report format and provide direction to staff. Administrative Services Director Nick Pegueros presented report on suggested format changes to the current Treasurer's Report. WALIA/FITZSIMMONS MOVED TO RECOMMEND THAT COUNCIL LOOK AT ATTACHMENTS B & C TOGETHER AS THE NEW FORMAT GOING FORWARD WITH THE ADDITION OF THE INFORMATION REGARDING FUND BALANCE BUT NOT IN A BAR CHART FORMAT. MOTION PASSED BY VERBAL ROLL CALL. AYES: FITZSIMMONS, WALIA. NOES: NONE. 4. Master Fee Schedule Discussion (no written staff report) Recommended Action: Discuss options for master Fee Schedule updates. Administrative Services Director Nick Pegueros provided a presentation on the Fee Schedule. WALIA/FITZSIMMONS MOVED TO RECEIVE THE REPORT AND RECOMMENDED THE 2% INCREASE TO THE FEES AS SUGGESTED BY STAFF INCLUDING ROUNDING FEE AMOUNTS UP TO $5.00 INCREMENTS. MOTION PASSED BY VERBAL ROLL CALL. AYES: FITZSIMMONS, WALIA. NOES: NONE ADJOURNMENT The meeting was adjourned at 5:01 p.m. Minutes respectfully submitted: Gina Scott, Administrative Analyst City of Saratoga City Council Finance Committee Minutes - March 24, 2022 Page 2 4 �\�� °i SAR,gpaG9 ADMINISTRATIVE SERVICES Ai Memorandum 1956 IFORN,P To: City Council Finance Committee From: Nick Pegueros, Administrative Services Director Date: April 28, 2022 Subject: FY23 Budget Preview BACKGROUND This memorandum highlights current revenue and expenditure projections for the Fiscal Year (FY) 2023 General Fund budget beginning July 1, 2022. DISCUSSION The FY23 budget preparation process is progressing, and we are ready to share with the Finance Commission a high-level preview of our current revenue and expenditure projections. Current FY23 projections have revenues growing slower than expenditures due to inflation. A review of the draft proposed budget schedules will be presented to the City Council on May 18 with the final proposed budget presented to City Council at their June 1 budget hearing. Revenues The General Fund's revenue sources remain stable for the upcoming fiscal year,and we project revenue growth consistent with previous years with a few exceptions. Fees and charges for services are projected to increase due to the recently approved City Fee Schedule updates. Sales taxes and transient occupancy taxes have been returning to normal over the past year, so we are projecting no increase in FY23 over the FY22 estimated actuals. 5 General Fund Budget $30.0 U) a 0 $25.0 2 $20.0 $15.0 $10.0 $5.0 $0.0 FY 19 FY20 FY21 FY22 Est. FY23 Actual Actual Actual actual Projected ■Revenues ■Expenditures Expenditures Our projected expenditures reflect a mix of expense increases resulting from negotiated agreements and immediate inflationary pressures on the local economy for the upcoming fiscal year. 1. Personnel, the City's largest expenditure category, will increase in FY23 based on negotiated contract adjustments. The City's current labor agreements cap the annual inflation adjustment to base salaries at 3 percent for the fiscal year beginning July 1, 2022, deferring the impact of skyrocketing inflation. The multi-year labor agreements are in their final year, and negotiations on a successor agreement will commence mid-FY23. 2. Sherriff Services contract includes annual cost increases capped at the lesser of inflation (CPI, Consumer Price Index)plus 2 percent or the average compensation increase, including CalPERS retirement cost increases. The FY23 cap is approximately 7%, given the regional change in inflation measured from February 2021 to February 2022 was slightly over 5 percent. 3. Consultant, contract, and internal services are more sensitive to inflationary pressures. We are experiencing a wide range of cost increases in this category, many exceeding 7 percent, and continue to refine our estimated impact on the FY23 budget. Next steps This memo aims to provide the Finance Committee with a preview of major revenue and expenditure trends in the projected FY23 budget. We continue to work on the budget and refine our projections so that City Council receives a balanced budget for consideration at their May 18 review and June 1 budget hearing. 6 • FY23 Bu e review Finance Committee April 28, 2022 ``�y�4 SARgrpG9 SARATOGA f i' f CA1lFDRN�P 7 Agenda * Fiscal Year 2022-23 ( FY23 ) preview • Financial trends • FY23 budget by category Fiscal Year 2023-24 ( FY24) budget considerations * Next steps in budget process SARATOGA s FY22 General Revenue Expenditures Other Sources Internal Other 4% Services Expenditures Charges 8% Fees & Charges 14% 10% Salaries 11 7 Consultant& Benefits Contract Services Taxes 11% Sheriff • Services • • 21 28% 9 Consumer Price Index by Metro Area, 12-month change Graphics for Economic News Releases(bls.gov) Percent 15.0 10.0 . ....................................... .... ... .... ... .... .0.0 IV r -5.0 Mar 2002 Mar 2004 Mar 2006 Mar 2008 Mar 2010 Mar 2012 Mar 2014 Mar 2016 Mar 2018 Mar 2020 Mar 2022 Hover over chart to view data. Note:Shaded area represents recession,as determined by the National Bureau of Economic Research. Source" U.S. Bureau of Labor Statistics. { F saR.gf G SARATOGA 10 General Fund Revenues Revenue Trends C30 O $25 FY23 overall, $20 $1.0 million or +4% $15 Taxes +4% $10 Fees & Charges 0% $5 Other 0% $o FY18 FY19 FY20 FY21 FY22 FY23 Actuals Actuals Actuals Actuals Estimated Projected ■Taxes ■ Fees & Charges ■ Other Sources y FsaRgf 9 SARATOGA qIFORhP 11 General Fund Expenditures $30 Expenditure Trends $25 - _ FY 23 overall, $20 $2.8 million, +12% $15 Personnel +12% $10 Contract Services +10% $5 Sheriff +7% $o Animal control +9% FY18 FY19 FY20 FY21 FY22 FY23 Actuals Actuals Actuals Actuals Estimated Projected Street sweeping +8% ■Salaries & Benefits ■ Sheriff Services Traffic signal maint. +7% ■Consultant & Contract Services Internal Services Charges Internal services +16% ■Other Expenditures {of saRgf 9 SARATOGA �4LtFORhP 1 FY23 Budget Preview_ (millions) (millions) (millions) Actuals Projected $ Change Revenues Taxes $21.5 $22.5 $1.0 4% Fees & Charges for Services 2.7 2.7 0.0 0% Other 1.0 1.0 0.0 0% Total Revenue $25.2 $26.2 $1.0 4% Expenditures Personnel $9.5 $10.6 $1.1 12% Contract services 10.5 11.6 1.1 10% Other 0.6 0.7 0.1 17% Internal Services 3.2 3.7 0.5 16% Total Expenditures $23.8 $26.6 $2.8 12% 13 FY2 :" Budget • Recommended budget balancing measures • 50% Use of Internal Service Funds' fund balances for one-time expenditures • 50% Reduce additional payment to the unfunded pension liability (UAL) • Alternatives • Working Capital Reserve, $1 million as of 6/30/22 • Fiscal Stabilization Reserve, $3.15 million as of 6/30/22 • Service level reductions o Sn NSJ SARATOGA �f 14 `\��t SARATOCS SARATOGA Cg11FORN�p FY24 Budget 15 CY24 Budget Considerations • Mid-year budget check-in • Revenue • Expenditures • UAL payments • Funding goals for priority Capital Improvement Plan (CIP) projects • Service levels • Use of Reserves • Working Capital Reserve • Fiscal Stabilization Reserve SARAT"A 16 Unfunded Pension Liability Unfunded Actuarial Liability (UAL) • As of June 30, 2020, UAL of $10 million • UAL results from • Lower than anticipated investment returns • Changes in actuarial assumptions • Saratoga's previous cost containment actions • Three-tier pension benefit for employees • Extra UAL principal payments of $1.05 million o Sn NSJ SARATOGA 17 Unfunded Pension LiabilityComparison Unfunded Actuarial Liability (UAL) unded 6/30/20 Min. Annual Additional Total UAL FY23 j Ratio UAL($millions—" UAL Payment d&ElymeW�- Paymer Saratoga 82° M $10.0 T $727.,627 $1,050,000 $1,777,627 Los Gatos 71% $61.9 Los Altos 68% $46.0 Cupertino 66% $53.8 Saq SARATOGA 18 Capital Flind 'ing Goals • Policy to evaluate annually as part of budget • Priority projects: • $250,000 — Sidewalk, Storm Drains, Curb & Gutter, and Bridge Maintenance • $200,000 — Retaining Wall Maintenance & Repairs • $250,000 — Parks, Trails, Grounds & Median Replacement Funding • $150,000 — Roadway Safety and Traffic Calming • $ 25,000 — Public Art Infrastructure Projects • 25 000 — Hakone Improvements $900,000 SARAT"A 19 Reserve Policies • Working Capital Reserve • $1 million — target and current balance • Reduced from $2 million in FY17 • Fiscal Stabilization Reserve • $3.15 million — target and current balance • Revenue declines lasting more than 1 year • Unanticipated extraordinary operational increases • Unexpected Federal, State, County, or CaIPERS funding change SARATOGA 20 `\��of saRgroc9 SARATOGA Cg11FORN�p Wrapmup 21 Next Steps • April 28 — Finance Committee budget preview • May 4 — City Council budget preview • May 18 — Draft budget schedules presentation • June 1 — FY 23 budget public hearing • June 15 — FY 23 budget adoption • July 1 — FY 23 begins SARATOGA 22 5/ 18 Worksheets 2017119 2018119 2019/20 2020Y21 2020/21 2021/22 %of Departments Actuals Attuals Actuals Adjusted Actuals Adopted Total Council&Commissions $ 182,662 $ 200,423 $ 250.117 $ 316,665 198,883 $ 278,599 1.1% City Manager's Department L022,733 1,269,758 1,177,020 1,480.368 1,467,112 1,506,556 6.0% Administrative Services 1.421,262 1,461.920 1,587.027 1,836.700 1,732,559 1,986.790 7.9"% CouuuunityDevelopment 2.246,525 2,309.258 2,544.733 3,015,199 2.882.417 3,107.146 12.4% Public Works 5,560.509 5.972.517 6.312.788 7.144.419 6.877.298 7,476.706 29.9% CoamnunitySenices 1.525.799 1.639.414 961.800 1,145,386 972.102 1,123.164 4.5% Public Safety 5.705.157 6.004.406 6.355.432 6.739,977 6,734,603 7.244.516 29.0% Non-Deparhncrual 1.725.155 2.030.109 2.247.322 1477.800 2.373.794 2,278.663 9.1% Total General Fund lip S 19,389,791 S 20,887,806 $21,436,240 S 24,156,514 23,238,768 S 25,002,139 100.0% FY 2017/18 2018/19 2019120 2020/21 2020i21 2021/22 %of Expenditure Cate orc Actuals Actuals Actuals Adjusted Actuals Adopted Iotal Salary&Benefits 7.264.949 7,617.050 8.047.944 9.075.240 8.562.534 9.313.635 373% CaIPERS UAL Paytnent 750,000 1,052.631 1,041.098 1,014.300 1,013,779 1.050.000 4.2% Materials&Supplies 246,785 223.304 208,572 343.619 404,954 308.215 1.2% Fees&Charges 788.811 891.96I 936,274 1.145,747 1.129.527 1.069.676 4.3% Consultant&Contract Senices 2,034,666 1451,965 2,183.881 2.570,276 2,281.017 1813,845 11.3% SheiffSm•iccs 5.319.341 5,680.745 6.057.371 6.408,958 6.424.039 6.841.990 27.4% Meetings,Events,Traniin 105,621 115,690 89.599 116,900 27,392 105,950 0A% Conunmrity Grants&Everts 233.336 242.667 229.766 328.932 229.507 280.225 1.1% Operating ChantExp - - - 76.687 90,160 6,800 0.0% Fixed Assets 19,785 20.459 13,511 - - - 0.0% Interval Sery ices Charges 2.626.497 2.591.332 2.629.225 3.075.856 3.075.859 3.211.803 12.8% Total Expenditures S 19,399,791 S 20,887,806 S 21,436,240 S 24,156,514 S 23,238,768 S 25,002,139 100.0% n SAq J SARATOGA IFO 23 FY2 =' Policy So immary • Recommended budget balancing measures • 50% Use of Internal Service Funds' fund balances for one-time expenditures • 50% Reduce additional payment to the unfunded pension liability ( UAL) • Alternatives • Working Capital Reserve, $1 million as of 6/30/22 • Fiscal Stabilization Reserve, $3.15 million as of 6/30/22 • Service level reductions SARAT"A 24 FY24 Policy r.onseiderateions • Expenditures • UAL payments • Funding goals for priority Capital Improvement Plan (CIP) projects • Service levels • Use of Reserves • Working Capital Reserve • Fiscal Stabilization Reserve SARAT"A 25 `\��t SARATOCS SARATOGA Cg11FORN�p Thank 26 �\�� °i SAR,gpaG9 ADMINISTRATIVE SERVICES Ai Memorandum 1956 IFORN,P To: City Council Finance Committee From: Nick Pegueros, Administrative Services Director Date: April 28, 2022 Subject: Proposed Road and Facility Replacement Reserve Policy BACKGROUND The attachments update the Road and Facility Replacement Reserve policy originally received by Finance Committee at their March 24 meeting. Attachment A is a clean version of the policy. Attachment B tracks changes with all red or red-lined text indicating changes to the current City Council adopted policy. 27 Attachment A ROAD AND FACILITY REPLACEMENT RESERVE FY 2 3 PROPOSED REVISION Road and Facility Replacement Reserve The Road and Facility Replacement Reserve is established to accrue funding for the major rehabilitation or replacement of City-owned roads, building, and structures. Eligible uses of this reserve include direct funding of public road and facility improvements and related debt service,if applicable. Road and facility improvements include major and minor replacements,renovations,or city-match for grant or debt financed projects. Changes in annual contributions and the reserve goal amount shall be determined by Council during the budget process, in line with changes in the City's economic situation. Utilization of the reserve shall be brought to Council for discussion and consideration as needed. Policy history* Action Impact on Policy Policy adoption: City Council established the Facility Replacement Reserve (FRR) policy with an initial FY 13 contribution of $300,000 and recommendation to continue annual funding at the $300,000 level using year-end operating surplus,if available. Policy amendment: City Council amended the FRR policy to increase annual funding from $300,000 FY 17 to $500,000. City Council amended also the FRR policy to incorporate the following guidance on the intent and purpose of the policy: Council has set a goal to fund the Facility Replacement Reserve to a level equal to 1/3 of the City's insured value over the next 20 years (by FY 2036/37) as a fiscally responsible practice to maintain city infrastructure.In principle,Saratoga does not pursue bond money to fund capital improvements,however,replacing high cost facility infrastructure requires a long-term funding plan that may or may not be attainable through annual contributions. Therefore, the Facility Replacement Reserve demonstrates both the City's good faith funding effort and financial stewardship for future bond measures if needed,as well as accumulating funding for a down payment on replacement infrastructure to minimize bond funding needs. A facility's insured value represents the initial cost of the facility decreased each year over the facility's estimated lifespan. Therefore, insured value represents the remaining life of the facility's purchase cost—it does not represent the current cost to replace a facility. The City recognizes insured value is not sufficient to fund facility replacements, therefore annual contributions will continue as an ongoing funding obligation even after the 1/3 reserve goal is met. Proposed policy At City Council's March 16 direction,the Finance Committee reviewed changes necessary amendment: to add roads as an eligible use of the FRR at their meeting on March 24. The policy May X,2022 reformatting and text updates reflected in red in this proposed policy captures the Finance Committee's input. *Policy history documents policy evolution.Text included in the legislative history section is not part of the adopted policy. 1 28 Attachment B ROAD AND FACILITY REPLACEMENT RESERVE FY 2 3 PROPOSED REVISION Note—Black text is City Council's current Facility Replacement Reserve.Red underlined text reflects proposed revisions. Road and Facility Replacement Reserve The Road and Facility Replacement Reserve is established to accrue funding for the major rehabilitation or replacement of City-owned roads, building, and structures > aeil ties (boil lags/s*..,.,.ttwes` Eligible uses of this reserve include both-direct funding of public road and facility improvements;and the son,:^",g of related debt service, if applicable. Road and facility improvements include major and minor replacements,renovations,or city-match for grant or debt financed projects. Small f4eility building r-eplaeemefits, major-faeilit-y renevatiens, a-Rd down pay+aea contributions toward a large faoility replaoement in eonjunetion with bond measure funding are examples of inten Facility Replaoement Reserve uses. Changes in annual contributions and the reserve goal amount shall be determined by Council during the budget process, in line with changes in the City's economic situation. Utilization of the reserve shall be brought to Council for discussion and consideration as needed. Policy history's Action Impact on Policy Policy ption: City Council established the Facility Replacement Reserve (FM policy with an initial FY 13 contribution of$300,000 and recommendation to continue funding_ at the $300,000 level using year-end operating surplus,if available. Policy amendment: City Council amended the FRR policy to increase annual funding from $300,000 to FY 17 $500.000. City Council amended also the FRR policy to incorporate the following guidance on the intent and purpose of the polices Council has set a goal to fund the Facility Replacement Reserve to a level equal to 1/3 of the City's insured value over the next 20 years (by FY 2036/37) as a fiscally responsible practice to maintain city infrastructure.In principle,Saratoga does not pursue bond money to fund capital improvements,however,replacing high cost facility infrastructure requires a long-term funding plan that may or may not be attainable through annual contributions. Therefore, the Facility Replacement Reserve demonstrates both the City's good faith funding effort and financial stewardship for future bond measures if needed,as well as accumulating funding for a down payment on replacement infrastructure to minimize bond funding needs. A facility's insured value represents the initial cost of the facility decreased each year over the facility's estimated lifespan. Therefore, insured value represents the remaining life of the facility's purchase cost—it does not represent the current cost to replace a facility. The City recognizes insured value is not sufficient to fund facility replacements, therefore annual contributions will continue as an ongoing funding obligation even after the 1/3 reserve goal is met. Proposed policy At City Council's March 16 direction,the Finance Committee reviewed changes necessary amendment: to add roads as an eligible use of the FRR at their meeting on March 24. The policy May X,2022 reformatting and text updates reflected in red in this proposed policy captures the Finance Committee's input. *Policy h�ry documents policy evolution.Text included in the legislative history section is not part of the adopted policy. 1 29