Special and Regular City Council Meetings February 4, 2020

0:00:12Martinez so we're looking at that as well.

0:00:15And with that the importance of unclogging

0:00:21our freeways up there on the north side of the county.

0:00:26So I did attend.

0:00:28I am on the policy committee the Environmental Policy Committee

0:00:31and I was up there in Sacramento when we are

0:00:34supporting the recycling bills.

0:00:37SB 54 and a d 10 80 and as a member

0:00:43of the League of California Cities

0:00:46we were asking residents to send notes

0:00:51and call your senators and Assembly members

0:00:55to support those bills.

0:00:57The Sierra Club supports this bill as well as myself.

0:01:01So I look forward in sending out those letters.

0:01:04Else Reno has always been in the forefront

0:01:07when it comes to what we do dealing with.

0:01:12Recycle So with Greg Lyman's longtime leadership recycle

0:01:18more I'm hoping we can play an important part

0:01:21in making sure that legislation goes through comes my way.

0:01:27Yes.

0:01:27Thank you.

0:01:28And most of my things have been touched upon.

0:01:31I attended the East Bay League of Cities legislative

0:01:37conference last week in Oakland I too went to Sacramento

0:01:42to the Sacramento LEAGUE OF CITY California League of Cities

0:01:48and I'm on Transportation Communications and Public Works

0:01:52Committee where we did take up underground

0:01:55and there is a resolution that did pass and the league

0:01:57will be seeking out authors to try

0:02:00to get more money a separate fund

0:02:02or improve any program that presently exists so more

0:02:05cities can participate in that.

0:02:07So That was good news also as mentioned next door the HANA

0:02:14the Contra Costa Floris building has received a Governor's Award

0:02:18for preservation and it was an honor to be up there with Dave

0:02:22Weinstein and Dianne Brennan and Tom Parness

0:02:25all of the L suite Historic Society

0:02:27who worked so hard to get that building not only preserved

0:02:31but to get the award for that and that

0:02:33is in honor of our Japanese American community

0:02:36that worked so hard in the florist and gardening industry

0:02:38here in the El Serino Richmond area.

0:02:42Thank you.

0:02:44So I've got a couple of things to report of we are going

0:02:47to appoint A.J. Friesen to the financial advisory board

0:02:53on January 20 3rd.

0:02:55I attended the west county mayors conference

0:02:58and want to remind everyone about the census that's

0:03:02coming up the census works the way many

0:03:07of the complex campaigns work.

0:03:09The sooner you return your questionnaire

0:03:13I think it's five or nine questions

0:03:14but the sooner you return your questionnaire the less annoying

0:03:19phone calls and postcards and other contact cards

0:03:22you're gonna get.

0:03:23So I encourage everyone to participate

0:03:26as early as possible and that's going to be I think it's them.

0:03:30You'll start getting your cards in about three weeks.

0:03:34Your first invitation to participate

0:03:36and if you don't respond you'll eventually

0:03:39get a knock on the door.

0:03:41And so just save everyone's resources

0:03:43the sooner you respond the less resources

0:03:46the county will be expending trying to get you counted.

0:03:51We are.

0:03:52We do have a vote coming up on March 3rd Tuesday March 3rd.

0:03:58And I want to remind everyone that that regular schedule

0:04:01meeting here on March 3rd has been canceled.

0:04:06It finally.

0:04:08And I want to make sure everyone does vote.

0:04:11Voting is important and there is a ballot box in the lobby

0:04:16and outside the mine outside it's 24 hours.

0:04:19So you can you can come to City Hall and vote here and last I

0:04:25do I want to echo what council member party Okamoto said about

0:04:30last Saturday I want to thank everyone that did participate

0:04:34and I know we encouraged people to continue to come tonight

0:04:38and at several other meetings.

0:04:40And it's good to see some of those familiar faces

0:04:42in the crowd.

0:04:43So thank you for taking that encouragement to heart.

0:04:46I do want to let you know that there was a technical issue

0:04:50with the recording as a result of trying to allow

0:04:54for the broadcast out in the lobby

0:04:58the overflow area the system we were using did not record it.

0:05:04It's not the same system that we used to broadcast.

0:05:07Our city council meetings our city council meetings

0:05:11are broadcast by two professional crew

0:05:14that come to us.

0:05:16So it's it's a different system altogether.

0:05:19We are working to get subtitles too so that there will be words

0:05:28to reflect what is being said and that

0:05:31is something that will be coming to that audio at some point

0:05:35soon.

0:05:35So I wanted to make sure you guys knew that

0:05:40with that we will move on to Is there any staff communications

0:05:45tonight.

0:05:46Sorry.

0:05:46I want to make sure there isn't.

0:05:48OK we'll move on to public comment

0:05:51or comment or communications from the public at this time.

0:05:55Anyone wishing to speak should complete a speaker card

0:05:59and give it to the city clerk.

0:06:00Comments on non agenda and consent items

0:06:03will be heard first.

0:06:04All other comments will be heard at the time the items discussed

0:06:08remarks are typically limited to three minutes per person

0:06:11but may be reduced depending on the number of speakers.

0:06:15When you come forward please state your name and city

0:06:19of residence for record and since there's only one person

0:06:24signed up I will ask Barbara Chan to come forward

0:06:28at this time and you will get a half hour to get a full three

0:06:36minutes or three minutes just three minutes

0:06:42Greg you remember my name.

0:06:43Thank you.

0:06:44Yes I'm Barbara chan and I live in El Serino for 32 years.

0:06:49I want to just speak about the well

0:06:51attended February 1st meeting that you held last Saturday.

0:06:56I was the person who brought up the suggestion that we

0:07:00talk about diversifying our revenue

0:07:02and not just focus on cutting services and raising taxes.

0:07:05And I heard the response from Melanie and Karen

0:07:09about how the the housing development on San Pablo Avenue

0:07:16would bring in future revenue.

0:07:18I also heard you say Greg that you've tried to diversify

0:07:22their revenue by bringing in other kinds of businesses

0:07:27but we don't have space.

0:07:28I want to speak especially to the comment about how housing

0:07:32will generate more revenue.

0:07:34I talked to my sister in law who is a County Planning

0:07:42Commissioner in a nearby county Bay Area county

0:07:46and she said to tell all of us that housing does not generate

0:07:51revenue it actually puts more pressure on our services

0:07:54and we're hard pressed to keep providing more services

0:07:57as we add more people to our community.

0:08:00So I think we have to look at that the larger picture of that

0:08:05as we're talking about diversifying the revenue

0:08:07and I hope that you will take that into consideration

0:08:09from a city planning expert.

0:08:12Thank you Great thank you very much.

0:08:14Do we have another speaker.

0:08:16No.

0:08:17Great.

0:08:18With that we'll move onto item four item for

0:08:22is our consent items.

0:08:25We have several items on their approval of minutes of from

0:08:32and that sorry the the electronic

0:08:38version doesn't tell me what date it is it

0:08:40just as approval of minute so the December 17th and January

0:08:447th meetings we have a proclamation

0:08:47for Black History Month.

0:08:49We have a proclamation for Lunar New Year.

0:08:52We have the economic development committee

0:08:54appointment We have the m u f g which is

0:09:00the that's what it stands for.

0:09:04Just F M F Yuji Union Bank fund transfer

0:09:08authorization form signatories and the quarterly cash

0:09:12and investment report and of for G annual payment for LCD

0:09:16a share of W Contra Costa County Integrated Waste Management

0:09:20Authority operating expenses Does

0:09:24anybody would like any to pull any of these items

0:09:27I'd just like to make a comment.

0:09:28I be be.

0:09:31I just wanted to once again bring up

0:09:34that this is Black History Month and I am so honored

0:09:38to be sitting here as an African-American person

0:09:43and I want to thank all of the people

0:09:46here in El Serato and all the people

0:09:48all around the country that have blazed the trail

0:09:51and allowed me to sit in this seat

0:09:53and I just wanted to recognize you.

0:09:55Thank you.

0:09:59Anybody else any comments.

0:10:02Can I get a motion please.

0:10:04I'd like to move adoption Consent Calendar.

0:10:08A B C D E F and G. Great we have a motion A through G need

0:10:15to have a second I got made by a second by Purdue Okamoto all

0:10:20those in favour please say I let the record show it passed

0:10:23unanimously but that does bring us to item

0:10:27five A which is a proclamation for Officer

0:10:31of the year and C zero.

0:10:37Chief you have a presentation it looks like.

0:10:40I do Thank you Mayor good evening council and mayor

0:10:43I'm Paul Keith your chief of police

0:10:45so I've got three presentations in a row

0:10:48and I thought I might just merge them

0:10:50together into one presentation if that's OK with you.

0:10:53Yes please.

0:10:54Thank you.

0:10:55So I am in front of you tonight introduce some very

0:10:57special city employees these employees represent the highest

0:11:00values of the Wall Street Police Department

0:11:03this last year they dedicated their time to make you know

0:11:05Sarita a safer city to creating connections

0:11:08within our community and to improving

0:11:10the quality of our law enforcement profession.

0:11:13Each of the department members I'm going to introduce

0:11:15contribute to the police department's success

0:11:17in their own unique way.

0:11:18They all three had some things in common they helped you those

0:11:21around them perform at a higher level

0:11:24and they are also people who one hundred percent you could

0:11:26depend on to do the right thing and to step up when you needed

0:11:30help.

0:11:31So I'd like to invite all three of them up here so they can

0:11:33stand together for Vivian Bocanegra as record specialist

0:11:45Veronica say Ha as and Detective Ryan track as applause

0:12:01so I'd like to start by talking about Vivian BOCANEGRA So some

0:12:04in the room may recognize Vivian as leader of our Police

0:12:07Explorer color guard she's persistently worked with

0:12:10our explorers to make our explorer color guard a class

0:12:13act operation during the year Vivian led our explorers

0:12:16as they presented flags at police and fire promotional

0:12:19ceremonies throughout really a whole year and I will say that

0:12:22she takes her position seriously and while

0:12:24you might catch Smiley now or smiling in the station when she

0:12:28is leading the color guard she is 100 percent all business.

0:12:33So Vivian is also the unit leader for our police explorer

0:12:35post during the year she helped motivate explorers to attend

0:12:39meetings events and competitions young women

0:12:43and young men have many different interests that pull

0:12:45them in different directions.

0:12:47But she was able to put the time and energy into encouraging

0:12:50her fellow explorers to stick with the program

0:12:52be involved in post events and come for community events

0:12:55and help get the message of public safety out there.

0:12:58Venus had near perfect attendance in the last year

0:13:00including her participation in her second police

0:13:03explorer Academy.

0:13:04And these aren't easy Academy and so you do one and its push

0:13:06ups and mile runs and everything and then

0:13:08to come back for a second one.

0:13:10It's pretty impressive.

0:13:12She also attended the Central Valley explorer Competition

0:13:14where she performed quite well.

0:13:16We're very proud of how Vivian represents the El Dorado police

0:13:19department both in our agency and in our community

0:13:23and we're very proud that she is our volunteer

0:13:25of the year as Vivian would you like to say

0:13:33something Thank you Chief.

0:13:37I want to give a huge thank you to my advisors officer prowess

0:13:41and Detective track who are two huge inspirations for me

0:13:46my family.

0:13:47Thank you to them of course for being nothing but supportive

0:13:49ever since I've joined the program.

0:13:52The department has become like a second home to me and everyone

0:13:55there like a second family.

0:13:56So naturally when I have the opportunity to help at an event

0:14:00it's a no brainer.

0:14:02I've learned so much ever since I've been in the program

0:14:05and I can't wait to continue growing and learning

0:14:08and be able to apply everything that I've learned in my day

0:14:11to day life.

0:14:11So thank you as OK.

0:14:20Next up I have Veronica say huh.

0:14:22So the theme for Veronica say has teamwork

0:14:25and pure development and also taking care business

0:14:28I guess would be the third one.

0:14:30So Veronica is a record specialist

0:14:32which means she works in our front office

0:14:34so record specialist adults Rito has

0:14:37some menial duties of making sure our police

0:14:40reports are accurate.

0:14:41Answering phone calls and those are interspersed with moments

0:14:45of high energy when somebody comes

0:14:47in in a moment of crisis needing help

0:14:49from the police department.

0:14:50So oftentimes our record specialists

0:14:52are the first people to see somebody

0:14:54after some horrible event has happened to them.

0:14:56So it takes somebody that can go from you maybe doing some data

0:14:59entry right into oh my gosh I need to help somebody and show

0:15:02some compassion so I can calm somebody down so she divides

0:15:06the time between helping the public

0:15:07and also maintaining our investigative files supporting

0:15:10our property and evidence unit and training

0:15:12her fellow employees.

0:15:14Veronica came to us from the Contra Costa County Office

0:15:16of the sheriff and she brought with her a lot of experience

0:15:19working with the Sheriff's Department warrant unit.

0:15:22She also brought a great attitude and the ability

0:15:24to motivate those around her.

0:15:26We benefited from Veronica's ability

0:15:28to pass along her extensive knowledge in a lot of ways.

0:15:32One of the ways is that over at the police department Believe

0:15:35it or not we have piles of audits every single year.

0:15:38In fact right now Police Department audit season

0:15:41the state comes in and does audits from post

0:15:43the state comes in from the finance department at times

0:15:46from all of our Law Enforcement Telecommunications get audited

0:15:51and Veronica has been in charge of handling

0:15:54a lot of these telecommunications audits

0:15:56and the nice thing is the chief is when

0:15:58I know we're being audited.

0:15:59I can just relax and know that I have a professional staff

0:16:03member like Veronica to just take care of it

0:16:06and she does an amazing job of making sure that our auditors

0:16:09need all the information they need for us to pass our audits

0:16:12and we do passed with flying colors thanks to people

0:16:14like Veronica.

0:16:15So thank you from the chief.

0:16:17Thank you very much.

0:16:19America was also instrumental in a recent audit

0:16:25that we brought on ourselves.

0:16:26So we called in an outside auditor

0:16:27to audit our property and evidence unit.

0:16:29So this is a week long audit where we have an auditor go in

0:16:32and delve into our evidence room to make sure

0:16:34that all of the practices and procedures we have in place

0:16:36are up to snuff and with Veronica's help.

0:16:40We ended up with a rating that exceeded

0:16:42industry standards for how we ran

0:16:44our property and evidence room.

0:16:45Just really an incredible rating from this particular auditor.

0:16:48He doesn't give out many of those.

0:16:50So Veronica was essential to that so as a record

0:16:53specialist she also spent a lot of time

0:16:55this year train our new record specialists on how to do all

0:16:59of the components of their job because Veronica has a very

0:17:02wide variety and diversity of experience and law enforcement

0:17:05records keeping on top of it all with all these duties even

0:17:09being the audit person she always

0:17:12has a smile on her face and a willingness

0:17:13to help everybody else.

0:17:15So we're very proud that she's a professional staff

0:17:17member of the year.

0:17:18We want to say thank you very much Veronica

0:17:21as just wanna say thank you.

0:17:28Really appreciate it It's nice to be recognized

0:17:31and that's not it as OK.

0:17:43Detective Ryan track.

0:17:45So Detective track here is a he's

0:17:47an El Cerrito gaucho gonna throw that out there

0:17:49first class of 2008.

0:17:52So Marilyn did detective try came into my office

0:17:55as a police recruit.

0:17:56He already had a lot of experience

0:17:58working as a lifeguard.

0:17:59He worked as a public safety aide up at Davis

0:18:02when he was going to college.

0:18:04And I looked at him and I said this guy is an outstanding cat.

0:18:07Outstanding candidate and like every category

0:18:10he's smart he has a good educational background He's had

0:18:13this long term commitment to serving

0:18:15the public through lifeguarding and even while he was

0:18:18at school and Davis he was doing stuff to serve

0:18:19the community up there.

0:18:21So we hired him.

0:18:22We've never looked back and regretted

0:18:24that Ryan has been an amazing person since day one.

0:18:28Every every month every year Ryan

0:18:31seems to be taking on new duties and responsibilities which

0:18:35really is a testament to how he really

0:18:38is the go to person to get things done in the department.

0:18:42In fact I'd say that one of his main challenges

0:18:44is managing all of these things that he does do.

0:18:47So let's talk about some of those things.

0:18:49Last year he was a traffic officer

0:18:51so he was tasked with promoting safe driving through the city

0:18:55He also was one of the key personnel

0:18:59to develop a draft policy and guidelines for our else route

0:19:02a drone program He spent countless hours

0:19:06with our explorer post and I mean countless hours

0:19:10meetings every she's laughing because she knows meetings

0:19:12every single week going away to explore competitions

0:19:15making sure he's present at community events

0:19:17to support the explorers.

0:19:19He served as an instructor both at the explorer Academy and

0:19:22our community police Academy.

0:19:24He has a pretty wide array of assignments.

0:19:26He's a member of the police department honor guard.

0:19:28So he represents the police department at official events

0:19:31throughout the county is also a member of the most mutual aid

0:19:35mobile field force and just recently he

0:19:38was selected to become a member of the Department

0:19:40detective unit You know I almost forgot to.

0:19:44You're also a crime scene investigator Wow.

0:19:48Yeah.

0:19:50We we actually said we need to start

0:19:51using Ryan for less things.

0:19:55So along the way in this last year

0:19:58he's authored hundreds of citation dangerous

0:20:00and distracted drivers.

0:20:01He's helped our investigators solve significant crimes

0:20:04in his role as a crime scene investigator

0:20:06and most importantly he's motivated employees who

0:20:09worked with worked with him through his positive outlook

0:20:13and his friendship he really is a great friend to officers

0:20:16in the department and he's a great example of how

0:20:20a person can get things done and juggle a lot of things

0:20:22and still have a great attitude at work.

0:20:25So he's an example for everybody our police

0:20:26department to follow.

0:20:28He has genuine care and compassion

0:20:29for those around him.

0:20:30And we are very proud to have Ryan track

0:20:33as our officer of the year so thank you

0:20:35Detective as I say I thank you.

0:20:45I'm sorry.

0:20:46She's a lot taller I just want to say

0:20:48thank you Chief and my command staff all my peers

0:20:51at the department.

0:20:52Family friends my fiance say it's a huge honor

0:20:56to be given this recognition and without their support

0:20:58I wouldn't be here.

0:20:59So thank you an add one more thing.

0:21:08Detective track will also be receiving

0:21:10recognition next week at the Elks Club and also brownies.

0:21:14So it's on Wednesday February 12th for those interested

0:21:19you can acquire the police department if you're

0:21:20interested in getting a ticket or I think the Elks also

0:21:23sell them directly.

0:21:24So go to my email and let me know if anybody needs a ticket

0:21:28and I will make sure they get it.

0:21:30Thank you very much.

0:21:31Thank you.

0:21:33Any questions from the council or statements from the council.

0:21:37I just wanna say it sounds like you're having fun too

0:21:41and you're not only a gotcha but you're an Aggie.

0:21:44So I know that you're good.

0:21:46All right good combo.

0:21:47Congratulations to all of you.

0:21:51Any other questions or comments just comments.

0:21:53Thank you so much for all of your service.

0:21:55I can tell from the smiles on your faces

0:21:57that you enjoy what you do and I think

0:21:59that's what's really important when it comes to serving

0:22:02the public is really making sure that you communicate

0:22:04that sense of not only providing safety

0:22:07but caring about the community.

0:22:08So thank you very much Also I'd like

0:22:11to echo what my colleague said and also Detective thank you

0:22:16as as a gaucho a fellow gaucho and I did have

0:22:20a chat with Council Member Abel said and she said

0:22:23that you attended high school and college

0:22:26or one of her daughters.

0:22:27So does that she is excited that you're getting this award

0:22:32and on behalf of Janet and myself again congratulations

0:22:37and congratulate to the crew.

0:22:41And I'll I'll echo you.

0:22:43You can't leave quite yet you have stayed up there

0:22:45I got to come down and hand you something

0:22:47you can't run and hide yet I want give

0:22:51my sincere thanks to all of you for your commitment

0:22:53to our city.

0:22:54I really appreciate it.

0:22:56And it does as my fellow council members said it does show

0:23:00in your faces that you really take great pride in our city

0:23:03and that's fantastic Don't leave yet.

0:23:06We've got to do motions then I get

0:23:07to come down and take pictures of those

0:23:09who have been here before.

0:23:11So I'm mean I'm go through it the same way

0:23:13that the chief did.

0:23:14And so it will be actually five see first Can I get

0:23:17a motion commending and graduating

0:23:19record specialist Veronica I'm done doing

0:23:24it the way that Chief did.

0:23:25Sorry I got to do it this way.

0:23:27Can I get a proclamation recommending

0:23:30and congratulating explore Vivian Boca Negra

0:23:34for her selection as volunteer of the year I can't move

0:23:38but Pardue Okamoto and seconded by Fidelio all in favor please

0:23:42say I can I get a motion commending

0:23:46and congratulating record specialist Veronica say her

0:23:49for her recognition as a professional staff

0:23:51person of the year for 2019.

0:23:54I got moved by Quito seconded by Purdue Okamoto all those

0:23:58in favour please say hi Hi And finally can I get a motion

0:24:03commending and congratulating Detective Ryan track for his

0:24:06recognition by the Richmond Elks Lodge number 12 51 police

0:24:10officer appreciation program and for his selection as Officer

0:24:15of the year and a second move by Purdue Okamoto seconded

0:24:19by to all those in favour please say hi hi and now I'll sign

0:24:22them as you know Well you don't have meeting with the group OK

0:25:43you got an All right uh that will bring us to item five D

0:26:11which is a presentation from the West

0:26:15Contra Costa Unified School District regarding

0:26:18measure on a classroom

0:26:19modernization and safety update and at this point

0:26:26I would like to welcome Superintendent

0:26:31Duffy Good evening.

0:26:38Mayor Lyman council staff thank you for having us this evening.

0:26:42We wanted to come and share and there's a few of us who've

0:26:46come today because we're so excited about the possibility

0:26:52of potentially upgrading more of the facilities in our district.

0:26:56And share a little with you about the measure our campaign

0:27:01and the measure our need is really around the district.

0:27:05So I'm going to let some members of our community

0:27:08introduce themselves who's come out to support

0:27:13Good evening council.

0:27:14Mayor nice to meet you.

0:27:15One thousand the president Yiannis Richman.

0:27:17I represent all the teachers in West County good Maryland.

0:27:22Good evening Maryland and a member of the Council

0:27:24I'm Tom Parness.

0:27:25I'm on the school board fellow council members

0:27:31I'm Consuelo Laura and I'm on the school board I'm

0:27:36Lewis Friese associate superintendent for operations

0:27:38and running the bond program so I'll just jump right into it.

0:27:44So what is measure are Measure R is a five hundred

0:27:47and seventy five million dollar bond to repair

0:27:50upgrade neighborhood schools modernize Core classrooms

0:27:53provide safe secure school environments including

0:27:56updated technology and air conditioning.

0:27:58We know that this community along with the rest

0:28:02of the community's makeup our district have been incredibly

0:28:06generous over the past 20 years providing

0:28:10our school district with some absolutely

0:28:13incredible facilities.

0:28:14And we are hoping to keep up that generosity

0:28:18with needs in district.

0:28:22Here schools that are very much on our radar.

0:28:26Kennedy High School and its needs a building

0:28:31with classrooms that have no windows.

0:28:34That is in our on our priority list.

0:28:37And right here now Serino the Fairmont school you'll also

0:28:42see some of our aging infrastructure

0:28:44from aging the hallways to heaters

0:28:48that are in its original form some 80 90 years old.

0:28:53So who will benefit from this measure.

0:28:58We have a set of priorities schools that are listed here

0:29:01and they're reflected in our facilities master plan

0:29:04that master plan was created finished about four four

0:29:08and a half years go and outlines needs through a process that

0:29:14takes into account both earthquake safety other factors

0:29:21as well as condition and age of the schools So

0:29:25what's the cost of this.

0:29:27It's sixth sense per 100 dollars of assessed value.

0:29:32And the median assessed value of the homes in our district

0:29:37is about three hundred thousand dollars and people

0:29:41are surprised that that sometimes

0:29:44but actually when looking at that just

0:29:46today to to be sure of that.

0:29:50And so what that would mean for the average homeowner

0:29:53would be about one hundred and eighty dollars a year.

0:29:57But you can do the math for your own home as well.

0:30:02So as I mentioned the community has

0:30:04been tremendously generous to our schools and our school

0:30:08district in the past.

0:30:10And you'll see some of the bond issue

0:30:12dates and the sunset date.

0:30:13So you'll see that when are these bonds were issued

0:30:18and when they will start to come off your tax

0:30:20bill some sooner than later.

0:30:23So again we realize we are very much appreciate

0:30:26the generosity of the community and the community

0:30:31gets a chance to see how these come have come on

0:30:34and also come off some construction

0:30:38projects over the past years.

0:30:42We have built or rebuilt 16 full schools renovated 28 schools.

0:30:49And you'll see on the left hand column

0:30:52the schools in Elsa Rito Harding in El Cerrito Kensington

0:30:58Harding Kensington Madeira you see Korematsu

0:31:01and Elsa Rito there as well.

0:31:04So you can see the tremendous investments that have been made

0:31:07in those schools Some schools that haven't been rebuilt

0:31:13but we've been able to make some significant investments

0:31:16in those.

0:31:16Also around our district.

0:31:19So when we haven't been able to fully rebuild the school

0:31:22we've done everything we can to take care

0:31:25of their critical needs As you well know some incredible bonds

0:31:31supported project sell Sarita high school

0:31:33and Cora which are just fabulous schools here in this community.

0:31:38Harding elementary and that's on the right side of mockup

0:31:41of Wilson Elementary School in Richmond

0:31:44which is temporarily housed here in the Portola campus.

0:31:48That's set to open in the fall.

0:31:50So wanted to give you a little bit of detail about what this

0:31:56ask is on our part and happy to answer any questions

0:32:00that the council might have.

0:32:03Councilman Quito sorry just before you

0:32:05do that there's a couple additions from our team.

0:32:08Thank you for reminding me.

0:32:10No problem.

0:32:11We're going to get better at this.

0:32:12We just presented some paddle yesterday

0:32:14so we'll get it right.

0:32:17So there are a couple of things there where I

0:32:18mentioned one first like we just we

0:32:21of course when I say thank you.

0:32:22We have a teacher and Fredo.

0:32:24I want to thank you for the work that you

0:32:26do on behalf of our students and our educators and our staff.

0:32:31You know our community has been incredibly generous

0:32:33and I think that they have definitely made our schools

0:32:36a priority we're asking them to continue

0:32:39to make them a priority.

0:32:41There's still I don't need if you go visit Fairmont you'll

0:32:44see that Fairmont there are teachers

0:32:48that are teaching in classrooms with halls with tape

0:32:52on the windows.

0:32:54The reality is that we just don't have the funding

0:32:55from the state to fix so many critical needs

0:32:58across the district.

0:32:59And this is why we need our community

0:33:01to support us the staff the staff room

0:33:04as well as the bathrooms have holes on the walls.

0:33:07And these are the conditions that we're

0:33:09asking teachers to work in and our students to learn in.

0:33:13And of course our educators will do everything they can.

0:33:15Right.

0:33:16But I think that having good facilities

0:33:18equitable facilities in every community is really important.

0:33:21We also have seen an increase in global warming.

0:33:26Right.

0:33:26And I know that's very important for a lot of people

0:33:29here Our heating situation in our district is critical.

0:33:34We don't have air conditioning in our schools

0:33:37and this bond would actually make it

0:33:39so that we can install air conditioning

0:33:41into our hottest schools.

0:33:43We are 30 schools are considered high.

0:33:45When we consider hot where classrooms get up to 95 degrees

0:33:49this school year alone three teachers

0:33:52have had to go to the hospital because of heating conditions

0:33:55during the day.

0:33:57And every year we're seeing an increase in this heating issue.

0:34:00So this is why one of the many reasons why it's critical.

0:34:03And we just want to mention a little

0:34:05about the campaign for measure are the campaign is being led

0:34:08right now by students parents and educators

0:34:13and sometimes it's kind of hard to keep up

0:34:16our students are making videos about their need

0:34:18for their school.

0:34:20And I know we've been trying to keep up

0:34:21with some of the social media.

0:34:23Some of us might not even know nowadays where social media

0:34:27pieces are going around where we just

0:34:29discover every day a new video.

0:34:30Students are making asking our community

0:34:33to support measure are so so we just want to let you know

0:34:36a little bit about that exercise there's a lot of misconception

0:34:39about who's supporting Sure.

0:34:41And it truly is a grassroots movement led by ours

0:34:44but led by our youth and our teachers and our parents.

0:34:47Thank you Questions from council.

0:34:54Go I'll start with customer Quito.

0:34:58Thank you Mayor Thank you for being here.

0:35:00I appreciate that.

0:35:02As as a graduate Fairmont school that that school as I have

0:35:08great memories of that school I took

0:35:10a tour of that school a few years ago

0:35:14I don't remember the holes in the bathroom.

0:35:17But I did speak to the principal that is now retired men

0:35:22and she told the inadequacies that are there at that

0:35:26school now it is overcrowded.

0:35:28One thing I don't understand is why is it so overcrowded when

0:35:34there is a school enrichment annex that

0:35:37is half empty stage school.

0:35:40Do you have more students at stage down.

0:35:43Sure I can.

0:35:44I'm happy to speak to that.

0:35:46So Fairmont is a very crowded school you're absolutely right.

0:35:49It has a very small footprint And so we do have a school.

0:35:55Steve that is under enrolled.

0:35:59And for us we would really have to take on a boundary change

0:36:04to make that happen and we would have

0:36:06to re boundary many of the students

0:36:09who live really near Fairmont and boundary them to stage.

0:36:13So we haven't made that decision to do that.

0:36:17And it's something we would have to take up with our board.

0:36:19We know many families move into this neighborhood.

0:36:22They want to come to Fairmont and we're

0:36:24really trying to honor those families

0:36:26and trying to make that happen.

0:36:28So we do have to think about that.

0:36:31Stage is a school that is on the top of the list as well.

0:36:36And so we're also hoping that stage by becoming

0:36:40a much more attractive campus.

0:36:41It's really one of the oldest and really

0:36:44poorest conditions in our district

0:36:46could also attract more families if we were to be able to make

0:36:49that boundary change.

0:36:52I know that Alvarado school I know it's now an adult school.

0:36:56Yep.

0:36:57But I've gotten e-mails from parents

0:37:01asking why can't that school be rebuilt for Richman and X kids

0:37:05so they can be closer to their home and their neighborhood

0:37:09instead of coming here to else to read out what's what's

0:37:12your opinion on that one.

0:37:13That's a good question as well.

0:37:15The cost of getting Alvarado built just even

0:37:21in its current state to house students

0:37:23because we've looked at that.

0:37:24We looked at exploring it further Mandarin school

0:37:27and I've looked at it for a few other options.

0:37:29It's almost cost prohibitive for it's

0:37:31a multi-million dollar project.

0:37:34So we do have money in our facilities master plan

0:37:38to support Alvarado but in terms of putting money

0:37:42to existing schools right now we're prioritizing

0:37:46stage and Fairmont.

0:37:47We do have to decide going forward if that's

0:37:51something we would look at.

0:37:53And now we also are seeing potential

0:37:55it could take years but a gigantic development that may

0:37:59be happening on the other side of 580 that will have thousands

0:38:05of units and you know out a place like alvarado might

0:38:09come back into play for that.

0:38:11I appreciate that because you know when I attended school

0:38:15a million years ago that's a history of stage

0:38:19It's been half empty all this time

0:38:21and neighborhood parents will not take their schools

0:38:24their kids to that school for some reason

0:38:26and it's always been like that.

0:38:28So I'm hoping the school board and you will look at that very

0:38:33closely Why would we want to rebuild schools where no one

0:38:36wants to take their kids to I don't mean that you can look

0:38:40at the bottom area of Alvarado school where where there is no

0:38:44building there just a playground and and start from scratch

0:38:48instead of tearing down the upper area because I know you

0:38:51use f for adult school and you have our Circle K there

0:38:54and thank you for doing that and bringing our are seniors who

0:38:59cook for our home and seniors and Elsa Brito and Richman over

0:39:02there and I appreciate your help on that

0:39:04so I know the importance about

0:39:06that And you know frankly I just want

0:39:10to say Elsa Rito when Kensington have by far had been very

0:39:16generous through the years and supporting a bond

0:39:20measure after bond measure.

0:39:22And frankly I was told in the last two bond measures

0:39:28that Paramount would be built. So but you know that's looking

0:39:32at the track record but also knowing as a former student

0:39:36there does need to be a be rebuilt

0:39:40So I hope you can get the word out on that

0:39:44and and Elsa Rito residents don't want to be fooled we've

0:39:48been fooled before and I appreciate the transparency

0:39:52and for you to come out here.

0:39:53Sure.

0:39:54And I'll just make two comments to that.

0:39:57You know in coming here now my fourth year

0:39:59I heard that a lot from a lot of communities about promises.

0:40:03And I will say I do think the finalization of the facility's

0:40:07master plan and all the work that went into that to try

0:40:11to get through all of the chaos and say this is going to be

0:40:16the the list of schools that we're going to prioritize

0:40:20knowing that we may still need to look back at that

0:40:22and say OK this school is on the list

0:40:25is that really what we want to do.

0:40:26But I do think it's helped create a lot of order out

0:40:29of the chaos and make sure we know what we're going to do

0:40:32if additional funds come in.

0:40:34Thank you.

0:40:36Councilman Yes.

0:40:38First I want to say thank you for all

0:40:40the hard work all of you do.

0:40:43I know Tom and Consuela know I watch

0:40:45your programs usually in bed.

0:40:47My wife says What are you doing.

0:40:50You are the most exciting you are exciting to me.

0:40:52I'm a geek but the budget issues you have.

0:40:56Hang in there.

0:40:57We're going through a tough time now.

0:40:58I know that my mother and my brother both were in the system

0:41:03when it was a bitch me Unified School District.

0:41:05So it's part of my life.

0:41:08I just Mr. Superintendent you mentioned no windows on John F.

0:41:13Kennedy High School I was in the first graduating

0:41:15class at Kennedy High.

0:41:17And that was innovation the time.

0:41:19No windows.

0:41:20Are you gonna put windows if this passes windows and Kennedy

0:41:24Well I I I can't definitively say yes

0:41:28I was but I think you know every time I go to speak

0:41:32to the students at Kennedy High and at Richmond

0:41:35High that is one of their premier ongoing complaints.

0:41:42We don't have any natural light in these rooms class

0:41:46after class.

0:41:47There are a few buildings some portables a science wing

0:41:50that do get some nice natural light

0:41:52but the main buildings don't.

0:41:55And yeah those were year ago that aren't our nation.

0:41:58Yeah yeah yeah.

0:41:59I may change I I'm with the windows.

0:42:02I think that's better.

0:42:03I just wanted to ask any of you that can answer this.

0:42:07There's another major school bond measure coming

0:42:10up on the third Proposition 13.

0:42:11Yes which is 15 billion dollars around the state

0:42:16for construction.

0:42:17Yes.

0:42:17And my understanding that nine billion dollars of that

0:42:20will go to K to 12 especially those hard hit communities

0:42:23so the timing of this.

0:42:25Can you explain if if if there.

0:42:29Yeah.

0:42:30So I'm hoping you will apply to this and as the other something

0:42:34that's yes I'm glad you raised that this a very important

0:42:37point because the state bond measure that is on

0:42:40there the way those state funds are allocated

0:42:44are through matching grants so it's

0:42:47not simply that every district just gets an equal cut.

0:42:51So you have to show that you have projects

0:42:54in the pipeline which allows you to then be

0:42:56eligible for matching grants.

0:42:59So the more projects that we have going the more matching

0:43:03grants that we're eligible for.

0:43:05So if this were to pass and we were to put these projects

0:43:08into place we would be eligible for potentially

0:43:1130 to 70 million more dollars that

0:43:14would additionally help us out.

0:43:16So it's very important that the state

0:43:20sees we have skin in the game which obviously this community

0:43:23has shown time and time again.

0:43:25But right now that leverage is really important.

0:43:29So I appreciate that sort of like transportation bonds

0:43:32you've got to have the money to leverage exactly.

0:43:34Final question as you mentioned priority list.

0:43:37I heard criticism that there wasn't a priority list

0:43:41and there isn't a top 10 in those communities

0:43:43that we're fighting for those local.

0:43:46It's now kind of mushed together that we absolutely have

0:43:49that it's called our facilities master plan

0:43:52and it lists out which schools are

0:43:54to be fully rebuilt which schools are to have

0:43:58their critical needs met.

0:44:00What we have said and I think it's what council member

0:44:04Quintana pointed out that we have to make sure we

0:44:08at least review that and make sure

0:44:10we are able to interrogate that list

0:44:14and not just follow it blindly Fairmont a great example.

0:44:18Right.

0:44:19When that list when that was written

0:44:22we the whole deal that happened with the senior center

0:44:26was not accounted for.

0:44:27Right.

0:44:28So is that the same scope of work is that the same price.

0:44:31Do we need to look out at the same exact way.

0:44:33So what we're saying is we do have a master plan the list

0:44:37but with our due diligence would be to look at that thoroughly

0:44:42and see five years later what is potentially changed

0:44:45and if there are any tweaks that we do want to make

0:44:47but generally that priority list is the place we're staying

0:44:52we're not suddenly going to bring

0:44:53in schools that have not been anywhere near that list

0:44:56into there.

0:44:57Thank you.

0:44:59My producer on all of my good questions

0:45:02have been asked that I'm windows.

0:45:04Well No I wasn't asking about the windows.

0:45:06I was but I can sympathize with that because I work

0:45:09in a hospital whenever I'm in a room

0:45:10without a window it makes a longer day.

0:45:12So I agree with the students saying

0:45:15that windows are important natural light is important.

0:45:19Also I think air conditioning is very important.

0:45:21I know there are a couple of days where my kids came home

0:45:23just as sweaty as could be and they had to go outside

0:45:26because it was so hot and they couldn't

0:45:28even be in the classroom.

0:45:32But I'm glad that we were thinking the same thing.

0:45:35Council member FDLE and I like your explanation of how

0:45:38the Prop 13 would coincide and potentially augment what you're

0:45:45asking for here So I think I think that was one

0:45:49of my probably my biggest question Interesting at our

0:45:54at our meeting that we had here on our budget we

0:45:58did a little breakdown on where your dollar

0:46:00goes your property tax dollar.

0:46:03And I was surprised to see how much of it

0:46:06actually went to the school district.

0:46:08So that just goes into kind of your your general fund or are

0:46:14you Are you familiar.

0:46:15I mean am my seeing that right from the graph

0:46:18that I saw that like the city gets twenty two cents.

0:46:22Yeah.

0:46:22A property tax I forgot exactly what the percentage was

0:46:26but it was the largest percentage of the dollar

0:46:28went to the school.

0:46:29If I may if you could go back a couple of slides to the one

0:46:32where you're showing when all of the various measures

0:46:35retire this one all of those measures

0:46:40contribute to the that the question.

0:46:43Yes.

0:46:44So just if your question specific to these measures so I

0:46:49can let Mr. Freeze also speak to that

0:46:51but those go into a specific fund after we issue the bonds.

0:46:59So what that does is you authorize us to issue

0:47:04X amount of dollars in bonds and so then we are issuing

0:47:09those not all at one time.

0:47:11We go out to the bond market you know every year every two years

0:47:16we issue those dollars.

0:47:18We bring them in and then the voters are paying that back.

0:47:23Year over year.

0:47:25So it does go into a fund that can only be used for facilities

0:47:29or only be used for exactly what the ballot measure says

0:47:33it can be used for.

0:47:34So just as you are we have a pretty large

0:47:38deficit in our general fund.

0:47:41None of this can touch that This is

0:47:43strictly for capital projects.

0:47:46It cannot work in any other arena.

0:47:49Right.

0:47:50But I guess what I was saying more so

0:47:52and maybe I'm not being clear is that the actual property tax

0:47:56dollar not any of the the 1 percent the 1 percent

0:48:01that the school district gets maybe

0:48:03about 40 percent of that in that goes

0:48:05to the general fund for usage.

0:48:08Yes.

0:48:10So what what I found interesting about that is kind of ties

0:48:14into my next comment or question is that it made

0:48:20me realize where all of the disparities

0:48:23come from in terms of our schools.

0:48:26I mean when you are looking at highly assessed valued

0:48:31properties you're going to get you know you're you're

0:48:3340 percent of the 1 percent depending on where you

0:48:37live is going to be so much more income and so in our area here.

0:48:44And then it look like people at home

0:48:46may be surprised that three hundred thousand dollars is

0:48:49the assessed value of the properties

0:48:51that but that's where the property

0:48:53tax money is coming from.

0:48:56Despite the fact that you may have moved into Eldorado

0:49:00last week for a million dollars you

0:49:03know not everybody is paying a million

0:49:05dollars worth of property taxes to the schools around here.

0:49:09We're getting the average of three

0:49:11hundred thousand dollars throughout the district.

0:49:14So I can really see where this is our time again

0:49:20with these facilities that are so so aged

0:49:24you know when you come into a city

0:49:27no matter where you're going.

0:49:28You look at the school and you look at the facilities

0:49:33and you can see whether or not those facilities look

0:49:36like a school where you want to send your kids

0:49:39and when you walk by a school and you

0:49:41see that it looks like it was built in 1950 or 1940.

0:49:46You don't want to send your kids there

0:49:48and I think this is really despite the fact

0:49:52that it's a painful number to look up there

0:49:56and I just paid my property taxes

0:49:58like calculating how much more that would be for me

0:50:01and it wouldn't be fun.

0:50:02But if those property taxes could rebuild Fairmont school

0:50:08and stage school and many of these other schools around here

0:50:12I mean I think you know you can look at it from a selfish point

0:50:15of view which is you know I live in all Sarita

0:50:17these things will be better for me but if any of you

0:50:20have a heart out there think about these kids

0:50:23throughout the district that don't live in what you might

0:50:26live in and and they're sitting in these rundown

0:50:29facilities every day.

0:50:31So this is our opportunity to give them a light.

0:50:36Maybe it's maybe going to school might be the best

0:50:39environment that they're in.

0:50:40All day long you know I can tell you from going home to places

0:50:46you didn't want to go home to.

0:50:48It might be the best place you're out all day long.

0:50:51And it might be the cleanest place

0:50:52and it might be the place that has the most food.

0:50:55So we need to think about that when we're thinking

0:50:58about this and not just how is it

0:51:00going to affect my bottom line.

0:51:02So anyway that's just what I wanted to say about it.

0:51:05And so I thank you very much for your presentation.

0:51:08I hope people at home will take that into consideration.

0:51:12Thank you for your comments so I'm sure we're gonna hear.

0:51:16I've seen criticism of this measure

0:51:18because the district has been plagued with cost overruns

0:51:23on some prior bond measures.

0:51:27What measures have you put in place that would help

0:51:30us to support this measure.

0:51:33Well as I spoke about I think the putting together

0:51:35the facilities master plan was one

0:51:37of the key items in starting to rein in the chaos of who's

0:51:42promised what type of project the facilities team and Mr.

0:51:48Freeze can speak about it has gone through a tremendous set

0:51:52of cost controls over the net last I would say 10 years

0:51:58and many of those emerged from audits

0:52:00of the program forensic audits.

0:52:03We have put many pieces in place We're still working on it

0:52:08to make sure we really nail it.

0:52:11But I do believe the program in terms

0:52:14of its efficiency and cost controls

0:52:16is in really really fine shape today.

0:52:19Mr. Freeze did you add anything to some of the specifics there.

0:52:23No I think you covered that pretty well.

0:52:24We've been working on the audit findings.

0:52:27To be honest you were conducted before and so while the results

0:52:31of the audits may not show our work but we are working on it

0:52:34and that information will be coming forward

0:52:37throughout the remainder of this fiscal year

0:52:39and to our board to show where we are that we have aligned

0:52:42our program with the best practices

0:52:49I would like to make one clarification on what you asked

0:52:50about tax dollars any tax bill that those dollars that you

0:52:53pay against tax payer actually go to the repayment

0:52:55of these bonds.

0:52:57So every time we issue a bond then

0:52:59it shows up on your tax plan that's why you see the line

0:53:01items that are there then that revenues is generated actually

0:53:04is the repayment.

0:53:05It's both actually.

0:53:07But there's your characters Smith specific line

0:53:09items associated with each one of these bond measures

0:53:12but the one percent add to Lorem tax

0:53:14does get distributed to a number of public entities including

0:53:18the mosquito district and the school

0:53:21district is the one of the largest

0:53:23ones out of the 1 percent.

0:53:24So you're correct Mr. Freeze it's

0:53:26it's there are line item specific to these bond

0:53:29measures as well as the percentage breakdown of the 1

0:53:33percent down the warm side any I mean you've rattled off them.

0:53:38The master plan you've talked about the master

0:53:41plan the master plan does not include charter schools

0:53:44or we're going to if this passes does the charter

0:53:48school get to reach in and pluck out some money as well in this.

0:53:51No they do not Any other questions.

0:53:56Mr. Kington one more question regarding the future

0:54:00of population of students.

0:54:03I was told that the population is getting smaller when

0:54:09it comes to elementary schools.

0:54:12Am I wrong at that.

0:54:14Is it or is it the opposite.

0:54:15Well we have been a district that

0:54:17has been declining by a few hundred students every year.

0:54:21This is the first year in maybe seven or eight years

0:54:24that our enrollment has not declined

0:54:28And so we're seeing that varies throughout our district we're

0:54:31seeing increases in else Serino increases in Hercules

0:54:35some decreased in some of the pockets

0:54:38of south and central Richmond.

0:54:40Those are some areas where we are seeing charters

0:54:44or we're seeing traditionally larger families

0:54:47that are there as long.

0:54:48So there's a variety of factors.

0:54:50But this is a year that we are up

0:54:53and we have to of course stay in touch with you

0:54:55and the rest of our cities to understand

0:54:57what's coming in terms of development and what we expect.

0:55:00So we are hopeful but we also do know that the cost of living

0:55:05is very very very high these days.

0:55:08And so that's that is a big push on our community.

0:55:11So we're keeping a close eye on that.

0:55:13Thank you very much.

0:55:14You're welcome.

0:55:15Thank you.

0:55:15At this time we'll take public comment

0:55:17at the city clerk could read off the names

0:55:19of public speakers for this site we only have one speaker.

0:55:22Ben Steinberg thank you.

0:55:28So I'm Ben Steinberg.

0:55:29I'm the chair for the No on our campaign Richmond resident.

0:55:34I so wish I could have even 20 percent of the time

0:55:37that they had but some of the arguments

0:55:39they made I want to talk about three things The property

0:55:43tax paying people and also read or feeling The second thing

0:55:48is the waste in the bond program that's occurred

0:55:50repeatedly over the years.

0:55:53And the third thing is a lack of transparency and accountability

0:55:56the district is pushing for and by the district

0:55:59I mean the superintendent and the chief business

0:56:02so people's property taxes are skyrocketing

0:56:06as you saw for every dollar that else regions pay

0:56:10in property tax.

0:56:11Forty five percent of that goes to the school district

0:56:17We think that's really high.

0:56:19And the community has been very very generous to bonds ago.

0:56:24The school district told us if you

0:56:25fund that bond we will finish our construction

0:56:28program community gave and Bond didn't happen.

0:56:32Another Bond came.

0:56:33The community proved it still not the end.

0:56:37We have this bond now and that's only 575 million

0:56:41of the one point one billion.

0:56:42The district sends still needs to finish its program.

0:56:46This process is endless Second thing

0:56:49that bothers me is the waste.

0:56:53This district built a 230 million

0:56:55dollar high school at another city in the district.

0:56:59That's a Taj Mahal.

0:57:01We just need to good clean high schools

0:57:04that are well maintained but our students

0:57:06can learn we don't need.

0:57:07Taj Mahal is the district refuses

0:57:12to include the schools that it says are priority

0:57:16on legally binding language.

0:57:18And the bond measure All right.

0:57:20They have a priority list.

0:57:21Sure.

0:57:22But we don't know who's going to be on the school

0:57:24board in five years from now.

0:57:26This money is going to go and we're

0:57:28going to be repaying until 2050 for the year 2050

0:57:31for I also want to say that right now twice in recent weeks

0:57:38in the school board agenda the district staff have proposed

0:57:42to the board that they roll back accountability

0:57:46and transparency measures with the city's citizens

0:57:49Bond Oversight Committee.

0:57:51The CBO sees state mandated as part of Prop 39.

0:57:55And this district is trying to stymie

0:57:58the oversight that the CBC is trying

0:58:01to provide to the bond program.

0:58:03That's wrong.

0:58:04It contributes to the waste So anyway it came up twice.

0:58:08The district punted the first time it punted the second time.

0:58:12It's going to take up the issue in March

0:58:16but it'll be March after the election has already occurred

0:58:21if the district is serious.

0:58:22Let them let them include transparency and accountability

0:58:26in the program.

0:58:27Now that's all I got to say Thank you.

0:58:30Thank you.

0:58:32We do have one additional Speaker Denny

0:58:33thanks Thank you very much.

0:58:44Your comments really tug at my heart

0:58:46when I think of kids having their best meal

0:58:48of the day in public school.

0:58:50I see kids being dropped off.

0:58:52I've seen kids at 6 a.m. being dropped

0:58:53off at our local schools.

0:58:56And it's it's horrific I'm public school

0:58:59educated all the way through graduate school.

0:59:01When I look at that list.

0:59:03That's one point six billion dollars the largest building.

0:59:08Where'd he go or superintendent here he's there.

0:59:10The largest building on the entire West Coast

0:59:12cost 350 million dollars the Salesforce Tower.

0:59:15It could house the entire district

0:59:18plus three other districts in that one building alone.

0:59:21There's just no explanation for how this

0:59:24can go close to two billion dollars

0:59:26and how they can even begin to repay it.

0:59:28He issued a letter on January 30th.

0:59:30If you haven't read it you should see it.

0:59:32They're going to make cost cuts up to 50 million dollars.

0:59:37They can't they can't pay their way out of this

0:59:40and who's going to pick up the debt if they go under.

0:59:43Yet again the school district has already

0:59:45gone into receivership once they're headed for it yet again

0:59:49and this is horrific.

0:59:51And while I absolutely agree with what you're saying we have

0:59:54every right and every obligation to defend

0:59:57and protect these children provide

0:59:59them the best education.

1:00:00How many more dollars beyond almost one

1:00:03point nine million billion dollars.

1:00:05Are we going to have to fund to pay

1:00:08for athletic facilities that are so beyond even

1:00:10what Cal funds for a high school.

1:00:14This is just craziness which is going on

1:00:16and I don't know how we balance making sure that kids are

1:00:21protected with the craziness of the adults

1:00:24that are in charge of this zoo.

1:00:26And it is an absolute zoo.

1:00:29Thank you.

1:00:31Go ahead have one more speaker Al Miller My name

1:00:38is Zell Miller I live in Naples Florida.

1:00:40Meyer lemon council members and staff Believe me

1:00:44I don't want to pay more property taxes than anybody

1:00:47else in the room but when I look at the chart

1:00:51and see every elementary every Middle School

1:00:54every high school in El Serino has been rebuilt

1:00:58or refurbished I call them.

1:01:03Taj Mahal is they're built. They're

1:01:07good but they're the only schools

1:01:08and those few others can be built in the next couple

1:01:11of generations.

1:01:12They should be built that way.

1:01:15Excuse me.

1:01:16The read High School was a wood old one

1:01:19was a works project administration building.

1:01:22It took them more work to tear that down I think

1:01:26than it did to build them up.

1:01:27So if you build good schools they last

1:01:30and they'll serve the community for a long time residents of El

1:01:35Cerrito have supported the bond measures

1:01:38I think better than any other community

1:01:41in the school district.

1:01:44The school district has had problems.

1:01:46The school board meetings is the place

1:01:49to go to solve those problems.

1:01:51I'm.

1:01:51I know you.

1:01:52Council members are all interested and concerned

1:01:55about it.

1:01:55And we'll do whatever you can do to encourage the school

1:01:58district to make improvements so that they don't get axed over

1:02:03and over again for this project I don't want to know how to say

1:02:11this without getting accused of I know

1:02:17but anyway it seems to me that we living

1:02:20in a part of the school districts that

1:02:22have had all of our schools.

1:02:24So all of our kids unless they choose to go somewhere else

1:02:28are going through these and new facilities

1:02:31both educational academic theatrical whatever we have

1:02:37almost a moral responsibility to support the projects

1:02:41and if you're concerned about the management of the program

1:02:44talked to Mr. Panisse go see Superintendent Duffy

1:02:48they listen to you but you know we can't just say no we're not

1:02:54going to give any more money and let the number of kids

1:02:59in our school district that are in completely unsatisfactory

1:03:02facilities dangerous facilities embarrassing facilities keep

1:03:08going to school and those facilities Thank you.

1:03:12Thank you.

1:03:12Any other speakers seeing none.

1:03:15I'll bring it back to council for comments customer vividly.

1:03:20Any comments.

1:03:22Every vote on this.

1:03:23Yes.

1:03:24Well we can take a motion on this.

1:03:26I will.

1:03:26I've been told that we can give you can there's

1:03:31ultimate options You can ask for a resolution

1:03:35to come at the next meeting you can give

1:03:37me direction on what to do.

1:03:42A letter to write that we can take an action tonight.

1:03:46Yes Well I'm I'm I get upset about this

1:04:01and I wish you all the luck in the world

1:04:04but it's because I do watch the board meetings

1:04:09and I see that teachers are being cut.

1:04:11I see the programs to our students that are hardships

1:04:17are being cut and I would love this money

1:04:21to go to saving and working toward the debt and issues

1:04:24that you have now.

1:04:27And it kills me because I've never voted against a bond

1:04:30measure or anything dealing with this school

1:04:34and I may go into the ballot box and vote for it

1:04:37but up here I'm going to abstain calls

1:04:42Marketo I agree with my colleague I

1:04:47am a product of deals.

1:04:49Richmond schools and to see that and to see many of the folks

1:04:56that that work there.

1:04:58But the ones always also have left for better

1:05:02conditions and better work pay.

1:05:05I saw that the students I mean the teachers were able to get

1:05:09raises but it also you see everybody getting laid off

1:05:14because of that I'm not happy of the way we were treated

1:05:21the city also Rito by having the school district change

1:05:26your mind about using the portal site for our library

1:05:30which we'd lost by two and a half points.

1:05:33I'm not happy with having to make so many phone

1:05:37calls through the years and appearing at every school

1:05:40the school board meetings when things are being threatened

1:05:45to be cut and I know our SRO programs

1:05:48that bring public safety to our students

1:05:53here Do you plan on cutting that as well.

1:05:57So as far as I'm concerned I'm not

1:06:00going to be able to support this measure

1:06:02because frankly I don't like what's going

1:06:06on with that school district.

1:06:09So I'm hoping that with the leadership of Tom Parness

1:06:12that we can actually see where all that money has been going

1:06:16to because frankly it's not going to the students

1:06:21where it should be going to so as a product of the old rich

1:06:25and school district I say know parents

1:06:30here have overwhelmingly supported

1:06:32this through the years.

1:06:34And if it wasn't for Elsa read out these projects would you

1:06:38have gone through that to see how these projects were built.

1:06:43You know I'm sorry I don't.

1:06:45I would I don't see anything changing in the near term

1:06:49on knowing that schools and the school population

1:06:54is supposed to get smaller.

1:06:57So I don't see I just can't go with that then and that hurts.

1:07:04That hurts me as well because I see so many of my neighbors the

1:07:09that I just moved in young families that moved from San

1:07:13Francisco Oakland and Berkeley that are paying a pay top

1:07:17dollar to attend these schools and they're not

1:07:23getting their money's worth.

1:07:26So that's where I stand So again it's not up to me

1:07:32it's up to the residents of El Reno

1:07:34and I hope they vote and vote in big numbers.

1:07:40But I for one won't be supporting

1:07:41this measure comes from our reporter

1:07:44Okamoto This is a bond measure.

1:07:48And so therefore just like the ones

1:07:51we're looking up at up there on the board

1:07:54they have a specific purpose in which they are funding.

1:08:00If this was a measure for the same amount of dollars that was

1:08:05going to go to your general fund I would probably

1:08:08vote against it because like us you're

1:08:11having some budgetary problems and we'd

1:08:14like to see better management of your of your funds

1:08:17just like you'd like to see us do better management

1:08:20of our funds but this is a bond measure

1:08:24that has very specific things.

1:08:26It's to rebuild schools to provide air conditioning

1:08:30and with the proposition 13 it will leverage more money

1:08:36and can and can be augmented by what the state can also bring

1:08:40in 10 years from now we could be looking up and down Contra

1:08:45Costa County with lots of new schools

1:08:49and more and more people wanting to move to this area

1:08:52because they see it as an area where they'd like to send

1:08:55their kids to school like our neighbor

1:08:58Albany who is known for their good quote

1:09:01unquote good schools.

1:09:03We could start to have a reputation that

1:09:06is similar similar but with broken down facilities

1:09:11We're not going to have that reputation

1:09:14but even more so I would like to reiterate what I just said

1:09:17before you know we just started this morning celebrate

1:09:22celebrating or sorry this evening

1:09:24celebrating I did that for me.

1:09:27Holly celebrate Black History Month

1:09:31and you know most of the black kids in our district

1:09:38would benefit from these rebuilds

1:09:42and we have enjoyed the rebuilding of schools

1:09:48here and also rito.

1:09:49My kids are gonna go all the way through school.

1:09:53Thank you.

1:09:54Thank you to all of you that have put forward that borrowed

1:09:56money that came before me and my kids

1:09:59are going to go to all three new beautiful schools.

1:10:05I know when they're in school aside

1:10:07from a lack of air conditioning that they're

1:10:09doing very well not all kids in this district have

1:10:12that I want all kids in this district

1:10:16to have that all of them.

1:10:20And I will bend over backwards to do it.

1:10:23I wish you would to So as council member Okamoto has

1:10:30stated to the schools that Albany has demonstrated schools

1:10:36are to enhance our property values so you know we are only

1:10:44helping ourselves when we help our schools

1:10:48and we do have a school Fairmont that hasn't been upgraded

1:10:53and that does serve elsewhere to residents.

1:10:56And so we're basically saying to those residents

1:10:59we don't think that you deserve a upgraded school.

1:11:04So you know we are we are clearly a divided council

1:11:09and we're a divided community and you know for those that

1:11:13are out there that are numerical like me

1:11:17the opportunity for matching to get at least 10 to 15 percent

1:11:23more than what we're voting on from the state

1:11:26from met Prop 13.

1:11:28The prop 13 that's on the March 3rd ballot is

1:11:32is fairly compelling to me that if we don't as a district don't

1:11:36have resources to match that we would

1:11:40potentially not see even any state

1:11:43money coming to us to help us.

1:11:45So For me the the fact that there's matching funds

1:11:49out there is somewhat of a compelling argument

1:11:53to support this With that we will move on off this matter

1:11:59so thank you for the school district and board members

1:12:03for coming out tonight and presenting to us

1:12:10we have no public hearings tonight.

1:12:12So we will move on to item seven which is policy matters.

1:12:15We have two policy matters tonight.

1:12:18We will start with policy matter seven

1:12:20a which is a long term long term financial forecast and budget

1:12:29study session and I know there's a staff presentation

1:12:34for this Thank you Your Honor.

1:12:37And Karen Pinkus city manager.

1:12:39And I will be at I will be also turning this over to microsite

1:12:44our finance director in just a moment on but I'd like to begin

1:12:49this discussion by thinking everyone

1:12:51who attended the community town hall budget on the budget just

1:12:55this past Saturday and you know I share the the thoughts of all

1:12:59of the council members that it was

1:13:01great to see such a huge turnout and some really

1:13:04great questions.

1:13:05So I think I'm really grateful for everyone who attended.

1:13:09We counted around 100 people about 20 of them were staff.

1:13:13But it was great to have everyone as engaged

1:13:15as they were.

1:13:16I'd like to thank the mayor in particular for being

1:13:19a great co-host And I do also want

1:13:23to apologize for the video streaming

1:13:25and when we do the livestream like right now for our city

1:13:28council we do contract with the with our broadcast team

1:13:31so sorry panel.

1:13:34We from the city panel that we contract

1:13:36with them to do our broadcast.

1:13:38We did tried to do it ourselves and tried

1:13:43to save a few dollars.

1:13:44So again sorry panel will call you next time.

1:13:48But we do we have also tried to troubleshoot

1:13:50some of those issues as well.

1:13:51So again we will be working with our vendor to

1:13:55to transcribe that on closed captioning.

1:13:58And so that'll be as soon as that's complete.

1:14:00That'll be up on the Web site we'll let people know.

1:14:03We're also creating a page on our Web site.

1:14:07L dash Sarita dot org slash annual budget process

1:14:11where we will be gathering information related

1:14:15to the upcoming biennial budget process

1:14:17as we go through all of these meetings

1:14:20as well as L dash sorry though dot org slash

1:14:23strategic plan which we will also be gathering information

1:14:27and putting more presentations on those pages

1:14:30so stay tuned to those pages as we continue to update

1:14:34the presentations slides have been posted online

1:14:37through the agenda page on the on the City Council

1:14:40web site probably tomorrow as early as tomorrow.

1:14:44I have also modified those slides to include the notes

1:14:48that I read from as I was doing some of the presentations

1:14:51so that they're not just pictures

1:14:53they're more explanatory explanatory as they explain it.

1:14:58I said that right.

1:14:58Right.

1:15:00Anyway.

1:15:00And so those will be posted hopefully by tomorrow

1:15:03as well as we did receive a lot of written questions

1:15:05that we weren't able to get to and so we're gonna

1:15:07work on those and update so.

1:15:09So keep going back to those pages we're gonna keep working

1:15:12on updating as we go along.

1:15:14But I just you know I'm very grateful to all of the feedback

1:15:17that we've received.

1:15:18There are more opportunities to participate on February 12th

1:15:22which is a Wednesday evening we're going to have a community

1:15:24open house to discuss strategic priorities so helping us

1:15:27prioritize our services and give us some direction to the city

1:15:31council from the community standpoint

1:15:34our next city council meeting will be on February 18th

1:15:36where we will be presenting the mid-year budget adjustment

1:15:40and the the final Kaffir.

1:15:44We'll talk a little bit more about that in a moment.

1:15:47And then the city council workshop

1:15:48to bring the strategic plan and budget issues together

1:15:50on March 14th which is a Saturday from 930

1:15:53to to another marathon day and we will have snacks

1:15:55this time I promise so tonight.

1:15:59This is intended to be a study session for the council

1:16:01to discuss our financial forecast

1:16:03going out to the year 2025.

1:16:05So as you know a number of variables impacting

1:16:08our forecasts and our assumptions

1:16:10have changed which have had a significant impact

1:16:12on the projections and what we will

1:16:14be talking about for the upcoming biennial budget

1:16:18process.

1:16:19So this presentation will discuss an overview

1:16:21of the changes to the forecast and we will provide

1:16:23some scenarios and some ideas for the city council

1:16:28to consider as we begin the process of developing

1:16:30our next biennial budget and what

1:16:33we would be hopefully looking for from the city council

1:16:35tonight.

1:16:36Is to ask questions to provide some

1:16:40some you know at least general direction to staff

1:16:44as we go forward in conjunction with the prioritization process

1:16:49and then come back to you with actual data and numbers

1:16:54related to the discussion we have this evening.

1:16:57So at this point I'm going to turn

1:16:58it over to microsite Thank you.

1:17:02Good man.

1:17:03Council members microsite the finance

1:17:05director I have a PowerPoint presentation for you.

1:17:10The five year General Fund forecast which I'd be jumping

1:17:12into into a few moments here.

1:17:16And on this PowerPoint presentation

1:17:18I will be exploring revenue and expenditure trends

1:17:20for the last eight years.

1:17:23The base assumptions presented on Baseline Scenario

1:17:28the shell call scenario a and so touching one time forecast

1:17:34amendments and then we give general fund five year

1:17:37forecasts and we look at two or three different charts

1:17:40and potential outcomes reductions

1:17:47is the first slide that I have.

1:17:48Looking back to pro 2012 2013 do the chart

1:17:53of total revenues and expenses Expenses

1:17:56are the red line total revenues.

1:17:58How the blue line and you'll notice that in the past seven

1:18:01to eight years we've barely made enough to set aside reserves

1:18:07in most cases expenses that exceeded revenues and that

1:18:11to a large extent reflects what we currently have in our fund

1:18:14balance situation which is a negative 56 thousand dollars

1:18:18in fund balance These are some of the assumptions we have made

1:18:25staff has made looking beyond this to the 2025 timeframe

1:18:29we have looked at property taxable through its sales tax

1:18:33growth rates plus no cost increases

1:18:37and inflationary rates in coming up with these estimates.

1:18:42The staff report has a fairly busy spreadsheet which

1:18:45is not really easy to read.

1:18:47So I've broken that spreadsheet out into different segments

1:18:49the next few slides This is what it looks like on your staff

1:18:55report and I'm not going to touch

1:18:56the spreadsheet I'm just going to take this

1:18:57beyond to the next step here.

1:18:59I take each part of this separately and look back

1:19:02over the last couple of years and for the next five years

1:19:04as well.

1:19:06So here is a quick summary as presented in the staff

1:19:09report of the last two years.

1:19:11They're pretty 18 19 and the current 19 20 fiscal year

1:19:14and the next five years we are looking at a biannual budget

1:19:18preparation process that begins at the end of this month

1:19:22and run through the end of June for the 20 21

1:19:25and 21 22 time frames.

1:19:27And you'll notice that for the draft CAF

1:19:29we have a negative 56000 as I pointed out to you

1:19:33and we will be coming back with mid-year budget amendments

1:19:37to the current budget that would hopefully generate

1:19:40a fund balance of five hundred eighty

1:19:41one thousand by June 30th.

1:19:45And you'll note that the years beyond the biennial budget

1:19:48cycle we have negative fund balances

1:19:51and this is what I like to call the baseline scenario meaning

1:19:55no reductions just the absolute minimum baseline revenues

1:19:58and expenses and then from that point forward

1:20:01we move into looking at different scenarios

1:20:04for different reductions and the consequent impact

1:20:06on fund balance.

1:20:07So that's your baseline summary and these

1:20:12are some onetime adjustments that we plan

1:20:14to make for the current budget tentatively media adjustments

1:20:19would reduce property taxes by 500000 thousand sales taxes

1:20:23by five thousand and we'd bring these back to you on the 18th

1:20:26of February with a complete listing

1:20:28of the details operating expenses would come down

1:20:31by 500000 net firefight time would go up by a thousand

1:20:37and that increase would be funded by To a large extent

1:20:40the property transfer tax which is budgeted at 850 thousand.

1:20:44We expect to collect about 2 million

1:20:46by the end of this fiscal year.

1:20:47So that's the increase that we see there

1:20:50We also have a write off to the general fund

1:20:53from the successor agency of one point thirty five million.

1:20:56That's in litigation at this point.

1:20:58And staff is suggesting that we set

1:21:01aside funds to write that off if and when

1:21:05that thing gets resolved.

1:21:07If it does not happen in our favor.

1:21:09So that's the 20 to 20 to 25 one point thirty five million

1:21:13set aside that we are proposing here on this slide.

1:21:20We have revenues for the last three

1:21:23years the current fiscal year and the next five

1:21:27years So Mark in those red numbers what would

1:21:34what were they.

1:21:36When we adopted the budget what were those red numbers So

1:21:40the amended budget here reads 2019 2019 2020 has a red number

1:21:45for property taxes for 10 million foreign and forty

1:21:48thousand prior to the amendment it was 10 million nine hundred

1:21:52and forty thousand which is a five million five hundred

1:21:55thousand dollar reduction on the sales tax line item

1:21:59the original budget was seven point six million are reducing

1:22:03that by hundred thousand once again and that drops it

1:22:06to seven point one million because of taxes that we

1:22:09expected to collect on cannabis sales but that had not mentally

1:22:14materialized at this point.

1:22:16And you mentioned in the previous slide

1:22:18the real property transfer tax you've made some sort

1:22:20of assumption about that.

1:22:22So the retail property transfer tax budget for 2019 2020

1:22:27was initially eight hundred and fifty thousand at the time

1:22:30that we set this budget back in 2018

1:22:33and we've discovered that in the last year year

1:22:36year and a couple of months we would potentially make two

1:22:39to two point two million in real property transfer taxes

1:22:41during the current fiscal year as projected.

1:22:43So it's a conservative estimate and we've increased the budget

1:22:48allocation appropriation for real property transfer taxes

1:22:51from 850000 to 2 million in this proposed

1:22:55amendment that's coming up before you

1:22:56have the next meeting.

1:22:58And that radical change because that's more than doubling what

1:23:01that line item had in it is based on what real numbers are

1:23:08in the first half of 2019 we've collected about one

1:23:12point one million illegal property transfer taxes

1:23:15from July 1 through January 16th of this year we've

1:23:19collected approximately one point four million

1:23:21dollars in property taxes.

1:23:23So we would expect by the end of this fiscal year that

1:23:25is through June 30 that the one point forward increase to about

1:23:28two to two point two million dollars

1:23:31and that's based on a comparable timeframe from last year

1:23:34that January to June.

1:23:35That's the yellow highlighter here.

1:23:41Just to show you that we've plugged in the real property

1:23:44transfer taxes that no growth in that it's

1:23:46estimated at 2.5 million for the duration of this five year

1:23:50forecast.

1:23:51And in just be clear that 2.5 is below the numbers we were

1:23:56estimating a e when we went into the real property transfer

1:24:01tax consideration we were thinking it would be based

1:24:05on when we had a real property transfer tax in the early 90s

1:24:10escalated we thought it would be two point seven million.

1:24:13So this 2.5 is is not even what we think it might realize.

1:24:19That is correct in the early 90s we

1:24:21I would say early 20s to thousands.

1:24:23The real property transfer tax was about approximately

1:24:26a million dollars and it was based on seven dollars

1:24:29per thousand of assessed value the current rate is twelve

1:24:33dollars per thousand and we expect expected to make

1:24:35two point seven million.

1:24:36But I don't think we've made 2.0 million at any point in time.

1:24:39Thank And just on that point if I if I may.

1:24:44You think that 2.5 is stretched out

1:24:48is conserved Totally be assumed it to be conservative even

1:24:53though our maximum what we thought two point seven

1:24:55is not that much different from it.

1:24:57Right.

1:24:58That is true Maybe this is out of whack but the context

1:25:03of the rebates that we offer through that Is there

1:25:08any information about how popular those are

1:25:11and whether that money has been deducted from this amount.

1:25:14Have you factored in the rebate issue as well to the 2.5.

1:25:20In the past.

1:25:21So you.

1:25:22I don't think you had more than one or two rebate claims

1:25:24and these have not really materialized at all.

1:25:27There have not been any so people are not taking

1:25:29up the rebate for TV or solar.

1:25:33I'd also like to note that I actually per the ordinance

1:25:37recently signed a waiver because we have had a couple of people

1:25:42who have come to us that do want to do the work

1:25:44and right now contractors are our line.

1:25:47I mean completely booked and busy

1:25:50and so we do have an allowance in the ordinance for the city

1:25:53manager to be able to make a waiver to a certain amount

1:25:55of time so because it supposed to be within one

1:25:57year of the payment so I actually have done at least one

1:26:01of those like a rain check right.

1:26:03And you so they can they can they have an additional time

1:26:06to be able to do the work because the contractors are

1:26:09booked and they haven't been able to get

1:26:10contractors to do the work.

1:26:12So right now it's a very busy time

1:26:13for anything relating to construction

1:26:19is marked before you go on is 2.5 million in 2021 aggressive.

1:26:26I mean I mean that that the flip side to Mr. Patel's question

1:26:31you know if we're doing two point two this year

1:26:35you think we're going to actually do two point to what

1:26:36you're projecting to which I like that but is two point

1:26:41five aggressive for next year.

1:26:44In the larger context of the macro economy given that we

1:26:49haven't had a recession in the last 10 years

1:26:52I would be hesitant to push it beyond 2.5

1:26:54and you're right 2.5 could be aggressive

1:26:56but I think that's a risk that we can take given

1:26:59the fact that we might end up with about two point two

1:27:00to two point three this year and you're just assuming it to be

1:27:03two million dollars and I'm just sensitive to being overly

1:27:09optimistic as we've been for the past few years

1:27:13that everything's gonna work out.

1:27:15Let's that that amount seems a little high to me.

1:27:17Let's pull it back a little bit.

1:27:20So we make our marks and appreciate that because part

1:27:24of the conversation here is to get feedback from you

1:27:26and to be able to go back and make adjustments as needed.

1:27:28That's not that too far from two point

1:27:30seven which was like council member Purdue Okamoto.

1:27:35I see what you're saying.

1:27:37Council member fidelity from maybe 20 19 to the 2020 budget.

1:27:43But then if you look at the rest I

1:27:45mean it does stay flat I think in that sense it does remain

1:27:48rather conservative because it will theoretically

1:27:51keep inching its way upward.

1:27:55So I think if you look at it in a five year forecast

1:27:57it's probably conservative.

1:27:59But from a one year forecast it's not conservative

1:28:03that that's my concerned customer My concern on this

1:28:07is we haven't had a recession yet

1:28:10and everyone says we're we're due for one man

1:28:14and folks are saying if because of the presidential election

1:28:19next coming up in November folks looking at a recession

1:28:26possibly the following year.

1:28:28So putting that into say let's just say so that 25 that number

1:28:38does sound conservative.

1:28:40Because during recession times we've seen just remembering

1:28:48what happened in the last recession

1:28:50when folks were selling their homes.

1:28:52So looking at that and let's say that there is a recession

1:28:57and we get be getting more from that property transfer

1:29:02tax typically a recession results in a reduction

1:29:08in consumer expenditure which results in people not

1:29:11wanting to spend more and more or being

1:29:13in a position to do that.

1:29:15And with the reduction in disposable income and so on.

1:29:18So I would expect the turnover in properties

1:29:23to not be as high as the economy is really.

1:29:27I mean consequently you wouldn't expect to have as much sales

1:29:32as you would normally have which in turn leads to a reduction

1:29:34in transfer taxes.

1:29:37OK I I still for one many reasons

1:29:43I expressed skepticism over the 2.5 million in forecast

1:29:46here 20.

1:29:48And I would like to see that reduced.

1:29:51I don't have a good number for you to move that to but that

1:29:57does seem until we know what.

1:30:00So we had agenda item two we have an agenda

1:30:06item on our tonight to change the way we collect

1:30:09this real property transfer tax for the sole purpose of trying

1:30:14dollars out of out currently going on

1:30:20but until we know how many how much the transactions really

1:30:24are to we have a track record of a good track

1:30:28record of transactions especially

1:30:31collected by the county.

1:30:33I'm hesitant to to jump to that flat number

1:30:37as part of customer referred to Okamoto

1:30:40has pointed out that 2.5 in 22 23 24 and 25 fiscal years.

1:30:46Yeah I'm not worried about those.

1:30:48It's that jump from 2 million to 2.5 million

1:30:50that I'm concerned about Any other questions on this slide.

1:30:56Because we've got several to go so this slide shows the revenue

1:31:01side of the busy spreadsheet that you had on the EIB

1:31:05and then you move on to the expenditures

1:31:07and a B stands for agenda Bill inaudible staff

1:31:10report and this is the expenditure side

1:31:13of that business spreadsheet and once again we have three years

1:31:18of actuals a draft Carrefour and the amended budget

1:31:23with the five year prediction that forecast you'll notice

1:31:28that there's a red number for three hundred dollars three

1:31:30hundred thousand dollars under the 1920 column which

1:31:33represents the additional firefight or time

1:31:36that we are seeking at the media.

1:31:39You're also proposing net operating cost reductions

1:31:42of five hundred thousand which is the next negative number

1:31:45that you see there.

1:31:46Can you expand on that number please.

1:31:49What does that mean Well a number of different departments

1:31:53have looked at their cost structure

1:31:55and they have decided to reduce or have taken reductions based

1:32:01on what they've seen happen in the past

1:32:03and what's available for the next six months.

1:32:06And these could be anything from from a recreation department

1:32:13expenses to finance department costs

1:32:15to public works department capital

1:32:18VIP expenditures and so on.

1:32:20We'd be coming back with all the details at the next meeting.

1:32:22But just so that you know these are primarily operating costs

1:32:27and these and the operating budget

1:32:28itself and I see a net because they are

1:32:32correspond increases as well.

1:32:34And the offset the net figure is the net from the increases

1:32:37less the decreases that we are probably

1:32:40taking at this but through his action

1:32:43So it's a net figure it's not totally 500 reduction.

1:32:45There'll be increases and decrease in the net figure

1:32:48that goes into that.

1:32:50Thank you So these are the expenditures from that staff

1:32:57report section of that and one of the things I'd like to call

1:33:01our team is the additional pension costs that you notice

1:33:04here so we had projected pension expenses from calipers

1:33:11and the amounts that you see as additional costs are

1:33:14the increased or incremental costs that we have

1:33:18to pay out from our operating revenues

1:33:20in each of the fiscal year.

1:33:22Those are the burgundy numbers under the columns 21 22 23 24

1:33:26and 25.

1:33:27Is that what you're talking about.

1:33:28That is correct And there's no corresponding number

1:33:33under past years and current 2019 1920.

1:33:37Can you explain where the pension

1:33:40costs are on the past numbers.

1:33:44So for that I would have to go back to the business sheet

1:33:49which has the details right of the bottom the

1:33:53on the last line for the past year going back to 17 18.

1:34:00And you'll notice that the poor's numbers listed right

1:34:04that at the very bottom and signs

1:34:07yet that it's the Spurs number is listed at the budgeted

1:34:13contribution in the bottom right of the very bottom four

1:34:22past numbers.

1:34:22I see it was 17 18.

1:34:27Right.

1:34:27He's talking past NO NO NO THERE THEY ARE.

1:34:30OK.

1:34:31I see it.

1:34:31So into in 17 18 it's four point something in.

1:34:35Right.

1:34:3718 19 it's five point something in in 1920

1:34:41it's 5 right on the sheet that the summary sheet that you were

1:34:44showing us would those numbers beyond that summary sheet

1:34:48several slides from here.

1:34:50I pull these numbers though these actual

1:34:52distributed among each of the departments

1:34:54themselves got about 17 here.

1:34:56But I've just pulled them out is that he could

1:34:57compare them with what's actually happening

1:34:59over the next five years.

1:35:00Excellent.

1:35:00Thank you And right next to it we also have the required

1:35:04players contribution and the difference between the two is

1:35:07what we've shown on the slide that we just left

1:35:11as the burgundy numbers which is the increase in pension costs

1:35:17rounded up to go to understand that mea culpas numbers have

1:35:22already been folded into each of the departmental costs

1:35:25so the difference has to be allocated among the departments

1:35:28and that's the difference that comes between what is required

1:35:30as a contribution and the amount that's carried in each of those

1:35:33budgets and so those required numbers that I have a printed

1:35:38one of the a maybe the attachment one to the agenda

1:35:41Bill the required numbers

1:35:43of seven point nine eight point five nine point one those

1:35:46were given to us how long ago every July calculus gives us

1:35:51estimates for the next five years

1:35:53and we use those numbers in our predictions.

1:35:54Okay.

1:35:55So this was way back in July 2019 Okay great.

1:35:59Council member Purdue Okamoto how

1:36:02do these numbers change if you go to that different discount

1:36:05rate.

1:36:05I believe you mentioned something about 6

1:36:07percent on Saturday here.

1:36:10It's not happening is if it were to go calipers initially

1:36:16started out with a seven point five percent discount

1:36:18rate which they dropped to 7 percent

1:36:19and if there is a likelihood that it drops to 6 percent that

1:36:22could have a substantial impact on the required contribution

1:36:27and you'll find that I outlined that as one of the risks

1:36:30at the end of this presentation that there is a there is

1:36:34a good possibility that could happen

1:36:36but they haven't disclosed that as yet.

1:36:38The general feeling is that long term discount rates meaning

1:36:42rates of return can be anywhere between six to six and half

1:36:44percent if not a lower could have a negative impact

1:36:48on the amount that's required.

1:36:50If you could go to the slide YOU HAD UP

1:36:52WITH THE BURGUNDY numbers or this one.

1:36:55Let's go to the one with Burgundy numbers

1:36:58So what we're currently at 7 percent.

1:37:01If we went to six and a half or six those bargaining

1:37:05numbers would go up significantly.

1:37:08Is that what I'm hearing.

1:37:09Absolutely.

1:37:10In fact the book any numbers in total amount to about eight

1:37:13point five million dollars over the five years

1:37:16and that thing could shoot up to about 10 12 13 million

1:37:21easily as as a result of the change in the discount rate

1:37:26It's unusual to go a full point though isn't it.

1:37:30I mean there would be six point five and in are you reading.

1:37:36Likely I haven't read likely.

1:37:38I have heard the the opposite.

1:37:42There are opinions on both sides going in

1:37:44and there are folks that think it might

1:37:46be even lower than 6 percent.

1:37:47Well on other hand there are others that think that it might

1:37:50level off at around six point seventy five

1:37:53but I wouldn't hurt anyone think that it would go up

1:37:55to seven and a half an eight percent like it

1:37:57used to be back five years ago.

1:38:00That's unlikely.

1:38:02And given the fact that the long term bond and the 10 year

1:38:05Treasuries concluded one point six one point five

1:38:09you're I'm going to get those high yields and some

1:38:11of these investments and I will also

1:38:14be attending a session on calipers

1:38:17with the late California cities on Thursday.

1:38:20So I will be able to update you with whatever the latest.

1:38:23They tend to.

1:38:24They are reporting to the city managers.

1:38:29And the red numbers in the lower right hand corner

1:38:32of this screen they represent the Delta

1:38:37between revenue and expenditures in each given year correct.

1:38:41That is correct you'll notice that the delta the difference

1:38:45between total revenues and total expenditure within each

1:38:47of the years starts becoming negative in the next fiscal

1:38:5120 21 21 22 which is the biennial budget.

1:38:54And that's why we call this the baseline forecast

1:38:57in other words with nothing being done to mitigate this.

1:39:01That is exactly what we expect to see

1:39:03happen in the next five years.

1:39:14So moving along to the last on the bottom section

1:39:16of the business spreadsheet on the staff report this section

1:39:21has all the internal transfers debt service

1:39:24payments and other adjustments that we typically make

1:39:29and the one thing that I would like to draw your attention

1:39:33is the emergency reserve or the EDI RF line right

1:39:38at the top of that slide highlighted in yellow

1:39:42and that's a place called for the EDI RF fund

1:39:46that the Fab had recommended that we fund over

1:39:50the next few biannual budget cycles this shows you that it

1:39:54has not been funded and the yellow line implies

1:39:58that it's blank.

1:39:58Nothing has been set aside for it.

1:40:01And as part of the part of the baseline scenario it is not

1:40:07being funded through this scenario a so the baseline

1:40:13scenario you you've got a set of assumptions

1:40:16that you've given us and you've presented them

1:40:18in this attachment and you've now broken attachment

1:40:22down so it's visible for our presentation purposes

1:40:26but the baseline budget is that line that says fund

1:40:29balance June 30 that starts with last June at negative fifty

1:40:35thousand goes up to five hundred eighty

1:40:37one goes up to six hundred twenty five down to 167

1:40:43down to negative million down to negative 2.5 million

1:40:46and down to negative four point four million.

1:40:48That is if we go forward with the assumptions

1:40:51that we've been talking about both in revenue

1:40:54and expenditures if we've changed that revenue

1:40:57number for real property transfer tax downward from 2.5

1:41:01million to two point let's say two point two simple math then

1:41:07that twenty five would be 325 your 625 would drop by 500000.

1:41:14We only dropped it to 300000.

1:41:16We said two point two not two point

1:41:17not 2.0 if it's 300000 it would drop by 3 and 200000 Thank you.

1:41:23And then each of the negative numbers

1:41:24in the in the out of three years be further negative further

1:41:28negative correct.

1:41:31So the baseline scenario is also graphed on my next slide which

1:41:36is this the the general fund reserve percentage

1:41:42of the reserve ratio over time as you'll notice

1:41:47that the base line reserve ratio goes

1:41:50all the way down to negative nine point one percent.

1:41:55If nothing is done.

1:41:56If you take on the revenues and expenses and the assumptions

1:41:58that we've made no reductions are made.

1:42:01This is what it would look like.

1:42:02Essentially we would have a negative point one percent

1:42:06for the last fiscal year of one point

1:42:07five positive for the next two biennial cycles

1:42:10and then from there onwards it heads south from there

1:42:13and heads negative nine point one by 2024 24

1:42:1725 so that's the starting point for the analysis

1:42:22meeting become bad.

1:42:24Different alternatives to rectifying

1:42:27the situation against this baseline scenario

1:42:29in the next three slides.

1:42:41So so we take that business spreadsheet that we looked

1:42:45at previously and start making a million dollar two million

1:42:50dollar and three million reductions in the next biennial

1:42:54budget cycle and the graph that you see in front of you is that

1:42:58baseline scenario as it keeps shifting upwards with the cost

1:43:03cuts cost reductions and the baseline is exactly where it is

1:43:08with a one million dollar reduction that baseline moves

1:43:11up to the red line that you see there and if you were to impose

1:43:15a two million dollar reduction on expenses the baseline would

1:43:19go up to the green line and if there were three

1:43:22million dollars in reductions for the next

1:43:24biennial budget cycle the

1:43:25baseline would move up to the top line

1:43:28and each of those percentages represents the reserve

1:43:32ratio at each point in time.

1:43:35So Mark the the half million dollars net reductions

1:43:40that were that will get a detailed presentation

1:43:44on in two weeks that represents a million dollars a year

1:43:49type reduction.

1:43:50So.

1:43:51So that's that's is that the right concept that that

1:43:55half million dollars over the second half of this fiscal year

1:43:57between January 1 and June 30 it represents a million dollar

1:44:02a year rate change is that.

1:44:04Is that a good way of articulating that I know

1:44:07it's one time because they're looking

1:44:09at it for this particular fiscal year

1:44:11and it's not going to be the same things that they we would

1:44:14consider for this type of 1 million dollar

1:44:17cut but numerically it has the same sense.

1:44:21Correct quantitatively yes.

1:44:23But if you think of it this is the expenditure budget

1:44:27is approximately 40 million dollars

1:44:30and 400000 is 1 percent of that 40 million dollars.

1:44:34So if you were to take out 400000 on the revenue side

1:44:37it would drop your reserve ratio by 1 percent.

1:44:41So in absolute terms yes it takes down

1:44:43five hundred thousand four hundred thousand

1:44:45or whatever that number might be.

1:44:47But in reality terms it would drop it by just 1 percent

1:44:50for every 400000 that you take out on the revenue side

1:44:53or increase your expenses by do you think each of these numbers

1:44:58and is that inverse.

1:45:00Did you say that backwards.

1:45:01If we reduced the expenditures or increased

1:45:04the revenue is that correct.

1:45:06If you reduce oil revenue and increase your expenditures

1:45:09I may have said it backwards you reduce

1:45:12your revenues by 400000 right or increase

1:45:15your expenditures by 400000.

1:45:17It has the same effect correct.

1:45:21My point being is that the half million

1:45:24that you've projected as a midyear

1:45:26adjustment that negative and Brad negative brackets.

1:45:32Right.

1:45:32That is equivalent to moving to the first line.

1:45:36Whatever color that is brown orange if we could sustain

1:45:43those cuts perpetually right because the cuts

1:45:48that we have from 1920 are not perpetual cuts during their one

1:45:53time time they're onetime cuts that are

1:45:55they wouldn't be the same cuts if we were trying to do it

1:45:58that is actually but they numerically

1:46:00they they have the same effect as being on that orange line.

1:46:03That is correct and your point about no EDF on this and what

1:46:14is it.

1:46:15Right.

1:46:15That's the reserve fund that's the mercy that you're just not.

1:46:20That's a separate conceptual thing you're thinking about

1:46:23that we want to deal with.

1:46:25So going back to this slide the yellow section

1:46:27the yellow line that's the idea is blank.

1:46:30Right.

1:46:31And everything that I present on this graph here

1:46:35assumes that it continues to be blank from the next slide.

1:46:40We present the same exact scenario

1:46:43but having thrown in 500000 on that yellow line

1:46:45that we saw previously In other words we're funding an idea.

1:46:49So we're taking a proactive contribution 500

1:46:53per year per year in this and that basically

1:46:56comes from our transfer tax.

1:46:58Is that correct.

1:46:59That is correct.

1:47:00But you also keep in mind that it's it's the same pie with you

1:47:05take find thousand from the General Fund Reserve

1:47:08and leave it to the General Fund Reserve

1:47:09or treated as an ADR You're still working

1:47:12with the same amount of money.

1:47:13It's just how you divvied up that that shows up on this one

1:47:18so I know this is confusing but I

1:47:21know I'd like to have that transfer fund segmented so I

1:47:24can visualize where money's going to fire relief

1:47:26and where it's going to our reserve funds and whatever.

1:47:30And I know there's resistance some staff to do

1:47:32that because it's all the general fund

1:47:33this is what you say but how do we know how much from that

1:47:38transfer tax is going to over time

1:47:42and how much is going to the reserve fund.

1:47:43Those are decisions we can make when the budget comes to us.

1:47:48So in the media budget that I'll be presenting

1:47:51a show requesting overtime.

1:47:53What 300.

1:47:54That is correct.

1:47:55OK.

1:47:57And that comes out of the transfer out of the at point 1

1:48:005 million increase in transport.

1:48:02That's yours just to every year.

1:48:04Make a request of rather than having it knowing

1:48:08that our reserve fund is everything except that three

1:48:11hundred thousand could be something that we go for we

1:48:15could do that we currently in the budget

1:48:18we have over time for the fire department funded at 900000.

1:48:23And we are seeking a three hundred thousand so

1:48:26that we can make it a one point two.

1:48:28Because on average fire overtime has

1:48:30been somewhere in the ballpark of a million two million three.

1:48:33So we are seeking twelve thousand to bring

1:48:36it up to one point two.

1:48:37But if we make that a permanent amount in the next five years

1:48:42then I would have to adjust the budget for each

1:48:44of those five years by 300000.

1:48:45So right now you're not saying that should

1:48:47be a permanent thing.

1:48:48That is correct I'm wondering if I'm understanding you.

1:48:52Council member fidelity I think one of the the disappointments

1:48:56that the council has had over the last year

1:48:58is that we assumed and I'm speaking for the council you

1:49:03can correct me if you assume differently

1:49:04but we assumed that since we had made no new appropriations

1:49:10that our emergency fund was being funded

1:49:13and we ended up you know with all the extra costs that come

1:49:17up over the over the last year.

1:49:20And we don't have basically the savings

1:49:23that we had thought about.

1:49:24So I think what counts and that's

1:49:26exactly what I mean I was surprised that money was gone.

1:49:30I was surprised.

1:49:31So we thought we had reserves.

1:49:34So I think what he's saying is if we could direct something

1:49:37into a fund where we have to you have

1:49:40to get permission from the council

1:49:42before you take it back out.

1:49:44I think that's what the council member was relaying that we

1:49:47might like to do maybe at least start that process so

1:49:50that we have some sort of idea when

1:49:55for hitting those red flags.

1:49:57And to that point the original intent

1:50:02was to create a separate fund within the general fund called

1:50:07the idea of a reserve line item.

1:50:10But unfortunately the general fund

1:50:12total fund balance we have approximately one point seven

1:50:15million in unassigned fund a negative one point

1:50:18seven million not an assigned fund balance

1:50:20at this point in time as of the last fiscal year.

1:50:22And that's an improvement over the previous year.

1:50:24We've improved by about half a million.

1:50:25But the fact is there is a negative one unassigned fund

1:50:28balance of one point seven million.

1:50:30And on the positive side we have one

1:50:32point three which is money due from the RDA

1:50:35and so on and so forth.

1:50:36As long as we have a negative unassigned fund balance that we

1:50:40may not create a separate reserve within the general

1:50:43that's a Gatsby requirement.

1:50:46So I feel that negative requirement

1:50:48on mental accounting standard boys requirement which

1:50:51is a SB pronounced Gatsby as B so

1:50:55to the negative undersigned fund balance becomes zero positive.

1:50:59There is no way that you can create

1:51:00a separate line item as a subset within the general fund

1:51:04balance.

1:51:05Looking at this chart and looking

1:51:07at the lime green number which is the 2 million dollar

1:51:11reduction line item and if I look out at that last number

1:51:15where it's six point four percent

1:51:18that's five years at five hundred thousand

1:51:20dollars towards the ADR.

1:51:22So the ADR F would be 2.5 million.

1:51:27The six point four percent would be six point four

1:51:31percent of forty five thousand.

1:51:34If it looks like it's forty seven thousand four

1:51:37forty seven million sorry it's six

1:51:40point four percent of almost forty seven million

1:51:43so it would be to do my quick five million dollars right.

1:51:49It would So we would we would at that

1:51:53point even though this this is trending down from seven point

1:51:56four to six point four percent we would be we

1:52:01would have quite a significant reserve at that point.

1:52:05Given your against baseline.

1:52:08Yes that would be six point four percent up your operating

1:52:11budget which would be around 40 million

1:52:1345 million dollars so that could be

1:52:17it's 3 It's addition to the 500000

1:52:20that you've set aside each year.

1:52:21Yeah.

1:52:22It's about it's about 3 million so in total

1:52:24between the two reserves we would have roughly 5.5 million.

1:52:29Right.

1:52:30As opposed to the negative 50 we have today.

1:52:32Yes Mark I think that 6 50000.

1:52:37Yes exactly.

1:52:38Sorry Mark I I I have a question Mark Quinto looking

1:52:43at we're at a negative B negative being negative B

1:52:48rating right now to get back to one and a an a or a triple A D

1:52:56would we have to be more aggressive

1:52:59in reductions to to get back to that rating A.S.A.P..

1:53:07So just a couple of years ago which was I

1:53:10would think 2015 2016 before we made the adjustment period.

1:53:14We had a fund balance of approximately two million

1:53:16dollars at that point in time.

1:53:18I remember the bond rating was an A minus.

1:53:23It was never a Triple-A but at least

1:53:25it was in the area and a minus.

1:53:28So what that tells us is that fund balance by itself

1:53:34can address a lot of issues that we currently have maybe

1:53:38they'd be the state he does issue

1:53:39or whether it be an issue connected with the bond

1:53:41issuance if we do have a fund balance of at least four

1:53:44million dollars which is the 10 percent reserve ratio that

1:53:48put vibe off so many other issues

1:53:50that we have on those accounts.

1:53:53But even with 2 million I think we could move back

1:53:55from a triple B minus to our triple beat back to A minus

1:54:00especially if there was the ADR f that was

1:54:02being funded at the same time.

1:54:04Right.

1:54:06And again to keep in mind that the ADR F and the zero

1:54:09something can either happen in the general fund

1:54:12or you can have it in both.

1:54:13Right.

1:54:13That's why I was asking when we get to that last year

1:54:16which I believe this is 20 25.

1:54:18That last column is is the June 30th 20 25 So on June 30th 2025

1:54:26with the lime green line we would

1:54:28have 4.5 million or partially 5.5 million

1:54:32distributed between the two different types of reserve.

1:54:35That is correct and the Fab has asked requested

1:54:44and we agreed to a 10 10 percent reserve

1:54:48amount that is to haven't been at the liaison

1:54:53to the Fab at that time.

1:54:55They established the 10 percent based on a misnomer of what

1:55:02FEMA would do in an emergency.

1:55:05Since that 10 percent we've learned you know based

1:55:09on our Sister Cities up in sun Napa

1:55:13that FEMA doesn't necessarily come through with money as

1:55:15quickly as rapidly and therefore the fab

1:55:18is recommending ADR f fund to to you

1:55:23to supplement the 10 percent fund.

1:55:27So in that sense we between the two

1:55:32if we were fully if we were at 10 percent which is 4 million

1:55:35and we had our fully ADR app at 6 million

1:55:38we would have 10 million dollars of reserve.

1:55:41So the fab is has pushed us towards a pretty significant

1:55:45overall reserve by making a Six Million Dollar ADR f

1:55:50recommendation because that that alone is another fit

1:55:54almost in their 15 percent.

1:55:55So right now the recommendation from the fab

1:55:59would effectively be a 25 percent target 6 million

1:56:02for the EDF and 10 percent for our operational reserve

1:56:08and so we we we've adopted essentially

1:56:1125 percent target although we're putting major strings

1:56:17on the EDF and you just mentioned

1:56:2225 percent in some of the correspondents out in the city.

1:56:26We we keep hearing about Albany having

1:56:28a 25 percent reserve level.

1:56:31Is it this apples to apples here or whether why do they

1:56:35how are they able to get they have

1:56:37that much now is that correct that bunch in cash.

1:56:39Yes that's the reserve.

1:56:41I mean if you take a city like Danbury

1:56:43for example they have 35 million dollars in cash.

1:56:46I thought they had one hundred million

1:56:47in cash in unassigned fund balance by right.

1:56:50Right near Albany but Albany and Albany has Solano Avenue.

1:56:56We don't have a racetrack we don't have a lot of LaVine

1:56:58and we take Pablo as Penn's casino right.

1:57:04Yes we should be considering the casino.

1:57:07Yes.

1:57:10But we've got to go back to rust where we rest was all about

1:57:14gambling may we should maybe we should consider that

1:57:17in the greyhounds back So if we had your direction your honor

1:57:23so on this two million dollar reduction

1:57:25the Green Line we end up in five years at six

1:57:29point four percent.

1:57:30But in that twenty one to twenty two we're seven point three.

1:57:34Yes.

1:57:36And the reason for Yeah.

1:57:37What is the reason for that.

1:57:38That seems to in one of the things

1:57:41that I I think I alluded to a few slides ago

1:57:46was the right of right at the bottom

1:57:51the slide the last bullet right over general fund

1:57:55advances to the sixth agency at one point

1:57:57thirty five million dollars which

1:57:58we currently carry on our balance sheet receivable.

1:58:02And again it takes a lot of time for the courts

1:58:08to resolve some these things and we've

1:58:10been holding on to that for we've appealed

1:58:12and I think we'll be on it for the last five years

1:58:15maybe the appeal itself has been pending before the Court

1:58:19of Appeals since 2016.

1:58:20We still don't have a hearing date

1:58:24And that's because the hearing is

1:58:26backed up with other litigation or they

1:58:28just have swept us aside.

1:58:30You don't have to opine if you don't to there is no way

1:58:32to know but that that other case in my office

1:58:37had an even longer period between filing the appeal

1:58:40and hearing nevertheless I think it's an unusual amount of time

1:58:44for the court of appeal to not take action on this

1:58:50and so on this slide.

1:58:53If you look at the line that is already a debt write off staff

1:58:59has provided approximately one point three million

1:59:02on line to be written off against the debt that's owed

1:59:07the general fund one point four but who's client for just being

1:59:11conservative there's no real reason to have that there

1:59:14but that's the one that drags the reserve

1:59:16ratio down in the last part of the cycle

1:59:30any questions on this question.

1:59:36Thank you.

1:59:37Looking at the 3 million dollars and reduction And I know that

1:59:45will be a heavy lift for everyone here at city hall.

1:59:52Now I remember when I was being in 2018 view I remember

1:59:56you specifically told me leave it in the bank

2:00:00and I always remember that and I asked you that again last year

2:00:05and you told me the same thing leave it in the bank.

2:00:08So I just want to make sure that I back in 2018.

2:00:14I used the word austerity and and I

2:00:17will continue to use that word because we've

2:00:20actually been doing it.

2:00:21We gave the tax hikes already we have

2:00:24but to to tax hikes already are three since I've been on.

2:00:29So looking at that now and looking at this chart of what

2:00:35we need to do to get our reserves

2:00:38back I truly believe we need to be aggressive about this

2:00:43and this is not a recession year yet.

2:00:46And I think we should make these cuts.

2:00:49And looking at these cuts we need to we

2:00:51can't borrow any money.

2:00:52We cannot work on our library.

2:00:54We cannot work on the things we planned on doing then.

2:00:59And this is going to be shifting years things years ahead.

2:01:04Things that I wanted to do this year.

2:01:07Yeah we'll probably after do years from now.

2:01:11And this is a big disappointment I'm not happy about this

2:01:15and you know I've I've I've talked to another council

2:01:21member Mayor in Southern California who

2:01:24is upset about this as well because this

2:01:26was hidden from them.

2:01:28And but if we all read the Katherine we

2:01:32all read the budget it really wasn't hidden from us

2:01:35it was all there.

2:01:36So I'm hoping in the future that we will study this

2:01:39and we will take heed to our financial manager

2:01:42telling us leave it in the bank.

2:01:45Let's leave it to the bank.

2:01:46These feel good legislations that we worked

2:01:49on that we lost money on.

2:01:52We can't do that anymore.

2:01:53This is about saving money This is about austerity.

2:01:57And I look forward in working with my fellow council members

2:02:01the city manager and staff we need to do this together

2:02:05and to get back to to a we need to do that

2:02:10or wherever this will be it'll be worse if we do this now

2:02:16when it's a good year when we have dealt recession.

2:02:19I believe that when it comes to layoff layoffs

2:02:23and we have to think about this.

2:02:26That's how we save money and and programs and and

2:02:31cutting down on our programs.

2:02:34I mean I'd rather do that first than to do any type of layoffs

2:02:38but know that we need to make these tough decisions

2:02:43and I look forward in working with you on this.

2:02:48Martin never hid anything from us.

2:02:50He told us back in 2018 we can't spend that money.

2:02:55So each time we were working on legislation last year

2:02:58I kept on saying no we don't have the money

2:03:02And so I'm saying this now before the residents of Elsa

2:03:06read our staff we mean business and we are going

2:03:09to save money for the city.

2:03:11We will have smaller government and this is what we have to do.

2:03:15We have a competent staff at a competent city manager

2:03:19and she is hired to make these changes

2:03:21and she will do what we ask her to do to make these changes

2:03:27to get back our rating.

2:03:30I've been here what six years now and all this has been

2:03:34hidden from us and I cannot tell you how angry I am if I only

2:03:40if I knew that all this was hidden from us I would

2:03:43have said no to have to two more things

2:03:46instead of saying yes so.

2:03:51This is something that I'm not happy with

2:03:54and especially going through a future audit.

2:03:58We will do what that audit group tells us to do.

2:04:03And if we need to cut costs we will do this

2:04:05and it's going to hurt.

2:04:07So to be clear leave it in the bank.

2:04:09You're referring to the real property transfer tax which

2:04:12is estimated between 2 and 2.5 million

2:04:15which would put us between the Green Line

2:04:18and the top purple line is that is that what you're saying.

2:04:21That was your question I think.

2:04:23Yes.

2:04:25Why.

2:04:26Why did we stop at me.

2:04:28You've got the three years of getting the one point four

2:04:32one point three million out.

2:04:33Why did you stop at twenty twenty five.

2:04:35Why why isn't this slide go further.

2:04:40The event horizon here stops at 2025

2:04:42because a number of different things happen beyond grade 25

2:04:45primarily.

2:04:46Most of the idea gets paid off and we

2:04:50start collecting the 22 percent the RPI

2:04:54DDA beyond that point in time.

2:04:56That's one of those events that happens in March

2:04:59of 2027 measure are sunsets.

2:05:02So that is another issue that happens out there.

2:05:07I would I suspect that calipers would make its 30 a smoothing

2:05:14correction around that point in time

2:05:17because they would have had six years of realistic estimates

2:05:21in terms of discount rates.

2:05:24And so that's the other factor that could come

2:05:26in around that point in time.

2:05:27So staff is actually looking at the classical category

2:05:32by his 10 year forecast.

2:05:33Even at the same time that we look at the five year thing

2:05:36which is going to be a lot more detail than this money is

2:05:39because this broken down Department as opposed

2:05:41to by expense date but that would

2:05:45be a distinct change in the tone of his whole forecast.

2:05:51The mid-year adjustment the half million

2:05:54that was on the earlier slide that we've talked about

2:05:58represent essentially a annual value of a million dollars.

2:06:03They orange line or whatever the first line above the blue one

2:06:06is that would not necessarily represent staff

2:06:12reductions Is that is that a.

2:06:15Is that a fair assessment just sort of feeling through what

2:06:18you've said tonight about the the midyear adjustment

2:06:24You're right.

2:06:24I mean the adjustment that would be

2:06:27proposing when we come back to you on the 18th

2:06:29would be more definitive.

2:06:30But at this point in time you're looking at territory reductions

2:06:32on the operating side which could include maintaining

2:06:36vacancies at the level that we've had

2:06:38and not feeling some of them.

2:06:41But to move up to the Green Line or even go between the Green

2:06:45Line and the Purple Line which would be as council member

2:06:48Kito said leave it in the bank That would require staff

2:06:53reductions staff reductions would average around

2:06:58and I would think for each million dollars in reductions

2:07:01you would probably need to lose around 10 positions

2:07:03at this point 10 positions and we're at 180 for positions yes

2:07:15So there's a lot of details that we could go on forever here.

2:07:21And I'm seeing the four or five year projection moving forward

2:07:26but are the initial comments the auditor has made to us

2:07:30is we have to make permanent cuts not for years then

2:07:36let's reinstate everything.

2:07:39I mean he he he they talk about the city's plan to simply defer

2:07:44maintenance and equipment and replace

2:07:46it is unsustainable without more permanent cuts

2:07:50to its expenditures so is that in your head when you're making

2:07:55these projections that we're talking permanently cutting out

2:08:00some services then they draw questions

2:08:02about our public safety staffing that as it is

2:08:07a full service city we're way beyond

2:08:09our means over the long haul.

2:08:12And again that part of the reason I'm here

2:08:14is to seek direction on this one because you

2:08:18are looking broadly in terms of cuts

2:08:20of 1 2 or 3 million dollars.

2:08:22You haven't broken it out into what exactly

2:08:24that would mean but we also have a slide here that staff has

2:08:28put together but this is okay.

2:08:30It's good timing here.

2:08:31Reductions that we've seeing with a little bit of ease as

2:08:36opposed to taking staff taking reductions in staff.

2:08:41I had a question on the last slide before you move on.

2:08:46Um just to clarify This is not any additional revenue.

2:08:54So this is all based upon the revenue

2:08:57that we're taking today.

2:08:59So this is not with any additional

2:09:00economic development.

2:09:02This is not with any of the additional properties that

2:09:05will come on on the San Pablo Avenue

2:09:09that have been approved or being or are coming along

2:09:12I should say.

2:09:14So that is correct It could theoretically

2:09:18be we could have more money but then as I mentioned

2:09:24before we also have on this.

2:09:27What this also doesn't display is

2:09:30how bad off we would be if the discount

2:09:33rate changes That is correct.

2:09:36So I think there's and it doesn't reflect the fact

2:09:42that our population goes up.

2:09:43We have to increase the number of services that we provide.

2:09:46Right.

2:09:47Okay.

2:09:47All right.

2:09:48That's all I wanted to say before you moved on to moving

2:09:52along to potential staffers coming up

2:09:54with these with this list of I wouldn't say low hanging

2:09:59fruit but at least something that we consider

2:10:01as permanent reductions if that's something that council

2:10:05would staff to explore.

2:10:08For example the five year forecast

2:10:11assumes that there would be a 3 percent COLA

2:10:14for underrepresented employees.

2:10:16As with all employees and that would be taking that out

2:10:21of the picture permanently for the five years

2:10:23would save us about thirty five thousand each year increase

2:10:29under President employee contribution

2:10:31to calipers that could not be a significant figure

2:10:34but that's something that's still out there.

2:10:37Furlough days hiring freezes cost of the expanded library

2:10:41hours account so expanded library

2:10:44our coverage company is back which

2:10:46costs about a hundred thousand a year

2:10:48so that's something else out there.

2:10:51The seniors and at least the Mac potentially again I'm

2:10:55not suggesting that this happened but it's something

2:10:57that could be explored in terms of is possible to move

2:11:02the senior center to someplace else and provide

2:11:03the same services Why is it getting

2:11:07out from under the lease.

2:11:08We may have to pay a penalty for that reduced part landscape

2:11:13park maintenance services and move some of those

2:11:15to Measure H that was passed recently.

2:11:18That's an option we currently pay

2:11:2140 thousand dollars for open gap software for transparency

2:11:24on the website.

2:11:25So that would come off the Fourth of July event again.

2:11:30These are just tentative suggestions

2:11:32which cost us about sixty thousand per year

2:11:34in terms of overtime and other staff costs credit card fees

2:11:39and charges that we get to pay for of an people sign up

2:11:48for programs in the recreation department

2:11:51using their great cards.

2:11:53I'm sorry Mark can you explain that.

2:11:55Yeah.

2:11:56So the been mean residence of an people charge for a charge

2:12:03their credit cards for program fees

2:12:07the vendor in this case ourselves

2:12:10be on the hook for about 3 to 4 percent in terms of credit card

2:12:15fees and the REC Services Department has explored

2:12:19the possibility of dropping that and they've I think succeeded

2:12:21in bringing it down to two point nine

2:12:23percent which would save us about fifty thousand each year.

2:12:27So that's a potential avenue for saving as well that we

2:12:31currently do not pass those convenience fees along

2:12:34to the users council member okay Then

2:12:41is capital improvement programs up

2:12:43the General Fund supports minor capital improvement to the tune

2:12:47of Hardin 5000 each year.

2:12:48And that's in the budget for the next five years.

2:12:51So that could come off permanently boards commissions

2:12:55committees started exploding benefits of reducing

2:12:58those and saving costs on that and then

2:13:02defer the large purchases of vehicles and equipment

2:13:05throughout the city that could provide some reductions

2:13:09in costs as well.

2:13:11These are just potential reductions.

2:13:14Some of these have to be fleshed out

2:13:15and will probably happen once we get more

2:13:19definitive direction from council which perhaps

2:13:22you would like us to explore.

2:13:24Another thing that could be added here for example

2:13:26is our police dispatch contract expires sometime in this period

2:13:29of time as well correct.

2:13:31That is correct.

2:13:32So potential air savings there as well and those that

2:13:35would be closer to a permit.

2:13:36Not all of these are permanent savings.

2:13:38For example the first bullet is not a permanent savings

2:13:41it's a it's a it.

2:13:46If we didn't give anybody increases for that long period

2:13:49of time I would suspect that we would be losing staff

2:13:52and not be able to attract them.

2:13:54But some of these can be permanent savings.

2:13:58So you can't defer it you can't defer

2:14:03your large purchases forever.

2:14:06And as far as the vehicles we have a list

2:14:09of what's needed that can be provided

2:14:12us because I hear there is a fire truck that is we need to.

2:14:16That is correct.

2:14:16Get going on yes we could go up the list of what

2:14:19you need to be piece so.

2:14:25Can I ask a dumb question but are when you talk about

2:14:30furlough days is that Friday.

2:14:34Can't do our employees work 10 hour days.

2:14:38So the Friday off.

2:14:40So they they work 35 hours a week so full time employees

2:14:44in City Hall recreation.

2:14:46This is unsworn are thirty seven point five hours per week

2:14:50that has been true for decades.

2:14:53It certainly predates me the closing of Friday began in 2001

2:14:59and that was a response to two things first of all

2:15:02we were at the time and this is right before I started

2:15:06in 2001 at the time City Hall was open from 830 to 430

2:15:10and closed at lunchtime which was not very customer service

2:15:15friendly.

2:15:15So we changed the hours to a to for Monday Wednesday Friday

2:15:20at 8 to 6 Tuesday Thursday which allowed City Hall to actually

2:15:24be open more hours overall.

2:15:27Also allowing for residents to be able to come

2:15:30say after work or during lunch with the every other Friday

2:15:33off.

2:15:33So what those employees do is that they

2:15:36stagger their thirty seven point five hours over nine days.

2:15:40We do have some flexible scheduling depending

2:15:42upon the position So there are some people

2:15:45that can if they are granted permission

2:15:48they can work for days only and not

2:15:50work on Fridays for example.

2:15:53But at that but the thirty seven point five hours for non sworn

2:15:57employees is has been standard for well predates the recession

2:16:03and well predates even my time here.

2:16:05Is there any play with that Friday

2:16:07though thus far because I know it's a great asset

2:16:11I had it for a couple years and it made the difference

2:16:14in a lot of yeah but.

2:16:16But I'm.

2:16:17It's a question of laying someone off and not having me.

2:16:20Well the other every other Friday.

2:16:22Yeah.

2:16:22The other reason that we had done that was in response time.

2:16:26And I think it was the year 2000 there were a lot of brownouts

2:16:29and throughout California PG&E and a lot of companies

2:16:33were taking steps to do telecommuting and being off

2:16:36on Fridays this was sort of a compromise I think

2:16:38instead of being closed every Friday.

2:16:41The real savings again unless you're reducing the amount

2:16:44of hours that people are working it doesn't

2:16:47make a personal savings.

2:16:48However it would probably marginally reduce utilities

2:16:53for example if we're not running a city hall

2:16:55or not we don't have the lights on it's one

2:16:57less doesn't make sense It doesn't make sense.

2:16:59It's not I should concede it's not a huge I don't know.

2:17:03We could certainly do probably some calculations.

2:17:06But you know unless you're reducing personnel hours

2:17:10it's not really going to make a big difference really

2:17:13we're just saying everything's on the table and everything is

2:17:16on the table absolutely I mean it

2:17:17the little things also add up.

2:17:19So if that is something that you know the council

2:17:21wants us to consider that's absolutely true.

2:17:24Again it does it does save on energy costs

2:17:27I'm sorry Mr. Philly were you asking to add the Friday back

2:17:30in I'm not sure I should.

2:17:32I'm just asking for a staff to consider options

2:17:35with that amount of time.

2:17:36So rather than getting Where did the people if that in any way

2:17:40keeps people on board.

2:17:41Let's change the dynamics with when people work.

2:17:45We can do a calculation and potential savings if we closed

2:17:47every Friday but that would also increase hours on Monday

2:17:51through Thursday.

2:17:52So what you were suggesting was close every Friday Sorry.

2:17:54No the opposite.

2:17:55Yeah that's why I thought open on Friday.

2:17:57Yeah.

2:17:58So the the council members proposal

2:18:00is to be open every Friday and to find

2:18:03out if that was a way to reduce costs while maintaining staff.

2:18:10I will ask the opposite though because I know our good friends

2:18:13Hercules went the other way and they

2:18:15were closed every Friday as part of their cost savings

2:18:18so it works.

2:18:19Yeah.

2:18:20Yeah.

2:18:20So I so I know Hercules is I think

2:18:23they're closed every Friday still

2:18:25to maintain their cost savings.

2:18:27I'm not sure how opening on that Friday would save

2:18:32and we'd have to take a look at that So would that

2:18:37be a reduction in the dollar and then would come back to go

2:18:40ahead or a reduction in salary based on the Friday closing

2:18:44and then not working I mean reduction of

2:18:48rather than getting rid of jobs.

2:18:50I mean so it would be you could say that We're

2:18:53furloughing people more.

2:18:56I know that at one point during the recession

2:19:00we furloughed people for two weeks over the between December

2:19:06and January but we.

2:19:07So during the recession This is the reason that this is brought

2:19:10up is because we did take this action during the recession

2:19:13the non sworn employees were subject to furlough

2:19:16days this was also a negotiation with SEIU.

2:19:19But we could also begin with the unrepresented employees

2:19:22it actually furlough days isn't equivalent to a wage reduction

2:19:26but doing it as a furlough day leave bank for example

2:19:30is how we set it up last time so that an employee could take

2:19:35an unpaid day at their choice so they would have to take four

2:19:38per year if they didn't take it by the end of the fiscal

2:19:41would be reduced from their paycheck

2:19:43but allowing them to use it as time off unpaid time

2:19:47off would be its helps lessen the blow a little bit

2:19:52but it does equate to a wage reduction.

2:19:54So as opposed to saying OK we're going to ask you to cut

2:19:57salaries by 5 percent or 3 percent

2:20:00or whatever the case may be by doing furlough days

2:20:03that does actually achieve the same benefit in a.

2:20:06And also in a more uniform way as opposed to all at once.

2:20:11We also do already close the time between Christmas

2:20:14and New Year's and those days are required.

2:20:18Those are not paid days.

2:20:19So if an employee would like to be paid their full paycheck

2:20:23they need to use vacation or any other leave bank other than sic

2:20:27so the reason that that is is is good

2:20:30for us is that it helps take the vacation

2:20:32liability assets off the books.

2:20:33So we've been doing that for quite a while

2:20:37and and I think that you know just sort of having

2:20:39that closure for those two weeks is certainly easier

2:20:42on residents and customers to understand we're just not

2:20:45open during that time we do have emergencies we

2:20:47do have call outs if necessary.

2:20:50Some times I think people have come in

2:20:52to do a permit if it was something really urgent

2:20:55but generally speaking city hall is closed for those two weeks.

2:20:58So we do already do that.

2:21:01Does that answer your question about furlough days.

2:21:05Yes I just.

2:21:06Do you have any other questions on that.

2:21:08Councilman Perdue Okamoto questions I just

2:21:11had more of a comment I think that what I was receiving

2:21:16from some of the public in terms of of asking to see

2:21:19if the staff could work the Friday that is normally closed

2:21:23I think there was the public perception that that staff was

2:21:28basically getting that day off and not

2:21:31getting paid a regular salary and having every other

2:21:34Friday off.

2:21:34But I don't think that what was you know I didn't realize even

2:21:38myself even though I would have looked

2:21:40on the door is that you're actually working those longer

2:21:43days Tuesdays and Thursdays.

2:21:45So the actual you know decrease from the 40 hour workweek which

2:21:49most people think of as a workweek is

2:21:51only 2.5 hours so it's really not that many hours.

2:21:55And I think the convenience of having the city the city

2:22:01hall open longer on a couple of days I think

2:22:04is really a big value to the public.

2:22:08And then I mean I just.

2:22:11Well I don't know what the actual savings is for having

2:22:15the basically less lights and computers and so on

2:22:18and we'll definitely look into that.

2:22:20Yeah on the Friday that you're not here.

2:22:22So that would be something interesting to look at.

2:22:25Questions good comes more work.

2:22:27Yes.

2:22:28You know I want to thank staff Mark thank

2:22:30you for this presentation.

2:22:37There's one more slide lift.

2:22:39Once OK.

2:22:40Go.

2:22:41Sure.

2:22:42So a focus wouldn't be complete without an assessment

2:22:46of the risks that go into that forecast as well.

2:22:49And These are my big ticket risks that

2:22:52can impact these forecasts.

2:22:54Adversely first is a recession be it like I pointed out

2:22:59previously and had a recession in the last 10 years

2:23:02and that could come back any time

2:23:04and if it does in the next couple of years that could

2:23:06impact our sales taxes for example

2:23:08not so much the proper Jack side of things

2:23:10as much as sales taxes significant onetime payments

2:23:14could take money out of the system.

2:23:16Natural disasters could also do likewise.

2:23:19A sharp increase in insurance premiums

2:23:21are workers comp premiums have been significantly higher

2:23:24over the last three years.

2:23:25I'm in the ballpark of nine hundred thousand dollars.

2:23:27If those batting shoots up that would be a risk to the system.

2:23:32A significant drop in campus discount

2:23:34rate discount rate and we've talked about briefly about it.

2:23:37If it drops to about 6 percent that

2:23:38would have a substantial impact on the forecast.

2:23:42And if like I said previously mentioned

2:23:45public safety over time has been trending around one point

2:23:49five million in the last fiscal year

2:23:51and if that moves up significantly that could impact

2:23:54the forecast substantially through these other risk

2:23:57factors that are out there that could impact these assumptions

2:24:02so he's the risk factors you're aware of.

2:24:04Yes Mr. Thank you.

2:24:07There.

2:24:09So the high public safety overtime costs

2:24:12let's say especially dealing with fire

2:24:17and the change of climate change don't we get don't we get money

2:24:24back if we're if we're at the fire department's working

2:24:27in other areas.

2:24:30During fire season we do.

2:24:32You've been called by the oh yes the governors

2:24:35of the emergency services and we get refunded that.

2:24:39But it's a fairly complex topic because we also

2:24:43have three firefighter vacancies back here.

2:24:46And anytime someone is out there you also have overtime

2:24:49the meter running on this side.

2:24:50So that does have an impact as well.

2:24:53But that being said like I said I mean firefighter overtime has

2:24:56been trending around 1 1 point to a million

2:24:58in the last fiscal year and that could be a factor that

2:25:02plays into this whole thing.

2:25:04We've just budgeted nine hundred thousand for it

2:25:06in the current fiscal year between trying to increase

2:25:08to one point two with a three thousand

2:25:10dollar amendment at media.

2:25:12But if that's made up part of this whole thing

2:25:14for the next five years that could have an impact on that

2:25:17and and in my opinion public safety

2:25:20also includes vegetation management

2:25:24and and dealing with the prospect of making sure

2:25:28that our dead trees are out and and I know that as overtime

2:25:33as well but that is part of public safety

2:25:36and we did promise our residents that we will do what we can

2:25:40to make sure that do we do what we can to make sure

2:25:44the neighborhoods are safe the dead trees are down

2:25:49and we have to take down all that eucalyptus trees so that I

2:25:54consider part of public safety.

2:25:57So I want to make sure that if we do cuts

2:26:01it's not going to be with public safety.

2:26:03And cities are run number one public safety

2:26:07at all time 24 hours a day.

2:26:10And I want to make sure that we're committed to that

2:26:13if we're not committed to that we shouldn't

2:26:15even be a city then so.

2:26:17So I'm committed and working with everyone to make sure

2:26:21that we don't cut public safety and that's

2:26:25the most important in my opinion the most

2:26:28important apartment that we need to make sure is fully staffed.

2:26:35Any other questions from council before we go to public comment.

2:26:41Questions have go ahead.

2:26:43Just back back when are we noticing.

2:26:48I mean I know there's some concern about insurance being

2:26:53canceled for homeowners because of fire

2:27:00Are there similar issues with the city

2:27:02as far as it is that increases that we might get

2:27:08from insurance companies if we are self-insured

2:27:12and so we work with the municipal pooling authority

2:27:16for our our own insurance so that

2:27:21does our fire because we're in a fire area.

2:27:23Could that in our bills happen The only bill

2:27:26starts in a fire area is when we have

2:27:29a couple clubhouses up in the sky just

2:27:31about a majority of ours.

2:27:33Yeah.

2:27:33Our insurance costs cover only our properties.

2:27:37So I don't you know we could We could certainly

2:27:41ask the question of NPA if they felt that that was ever

2:27:43an issue but I haven't that hasn't

2:27:46been brought up at this point.

2:27:48Keith so you know other questions will go

2:27:52to a public comment this time.

2:27:55Looks like we have about seven public speakers.

2:27:59We'll do a full three minutes.

2:28:01The first three speakers tonight are Judith Frank followed

2:28:03by Rose Stam and Nick Zambrano Good evening Mayor Lyman city

2:28:18council members city manager and staff I want to publicly

2:28:25express my thanks to the city council and the city manager

2:28:29for agreeing to convene Saturday's town hall meeting

2:28:33and to other city employees who attended

2:28:36and those who participated the overflow of attendees

2:28:40made evident that the residents of felt. Elsa Prieto

2:28:43care deeply about the city's fiscal crisis

2:28:47and want to see our problems resolved.

2:28:50We look forward to contributing at the February 12th strategic

2:28:54plan open house and the March 14th strategic planning

2:28:58workshop at Saturday's town hall meeting we learned sobering

2:29:04information of just where the lack of oversight

2:29:08and management decisions and assumptions and the demise

2:29:12of the Redevelopment Agency had brought us to at the close

2:29:16of 2018 19 a fifty six thousand six hundred dollar deficit

2:29:21in the general fund a 4 million shortfall in the general fund

2:29:26reserve Elsa Rito is one of the most taxed cities in California

2:29:32we all know that until residents see evidence of steps taken

2:29:39to reduce expenditures and to attract economic

2:29:42development steps that clearly show significant

2:29:48gains on the path back to

2:29:50solvency.

2:29:52I strongly believe that imposing or asking this community

2:29:57to approve any further taxes is absolutely

2:30:01unacceptable and ineffectual until we see evidence

2:30:07that the city demonstrate it can properly manage taxpayer funds.

2:30:12Thank you very much for the opportunity to speak.

2:30:14Thank you.

2:30:15The next speaker is Rose Stam followed

2:30:16by Nick Zambrano at the town hall meeting February 1st.

2:30:31The city manager stated that in the recession

2:30:34other cities reduced staffing.

2:30:37They are now solvent.

2:30:39So given the city's dire financial situation

2:30:43it appears that it's time to implement layoffs Also I fully

2:30:49expect that the city's grant writer has

2:30:53on her agenda to actively seek out and pursue

2:30:57any available grants.

2:30:58Thank you.

2:30:59All right thank you very much the next speaker is

2:31:01Nick Zambrano followed by top Paul

2:31:03Duncan Good evening Mr. Lyman.

2:31:08City council members city staff Nick Marino Elsa Prieto.

2:31:12Yeah I was in attendance last Saturday

2:31:14and I think I came away and most people came away with some very

2:31:19impressionable ideas about what the community is

2:31:22expecting from city council and city staff.

2:31:26As you heard the community has a lot of good ideas in regards

2:31:32to what input they want to make to recommendations

2:31:36to obtain some kind of financial solvency.

2:31:40And I think that it was good to have you guys listen to us.

2:31:46In that regard I think the community is expecting

2:31:48more transparency and leadership from you all

2:31:52and I think that you know.

2:31:54Yes these are tough times where they were in a financial budget

2:31:57crisis and I think that you showing leadership and moving

2:32:05did this direction to financial solvency

2:32:08is something that we would be expecting

2:32:10and also demanding from you.

2:32:13And with that I also want to say that these decisions are not

2:32:18going to be easy and it's going to they're going to be painful

2:32:21and a lot of people are going to be hurt by them.

2:32:24But these decisions have to be made.

2:32:27And so looking at the budget forecast today

2:32:32I was thinking that nonessential services need

2:32:38to be the first priority cuts essential services

2:32:43especially public safety.

2:32:46That means police and fire and I'd like to thank.

2:32:50Councilman Kintore for his strong words

2:32:53of support for fire prevention and fire safety this

2:32:56is something that residents have elsewhere to really

2:32:58need especially in these times when

2:33:01residents feel that they're being protected and safe.

2:33:04We have a better feeling of well-being

2:33:06especially in these dire times of a budget crisis.

2:33:09Thank you very much.

2:33:10Thank you.

2:33:11The next speaker is Paul Duncan followed by Howdy Gowdy

2:33:18Good evening.

2:33:18I'm Paul Duncan El Cerrito resident

2:33:20and representing make House real fire safe last Saturday.

2:33:24Like others here I attended the three and a half hour long

2:33:27budget one to one presentation here in these chambers

2:33:30I applaud the city manager the city council especially Mayor

2:33:34Lyman and former mayor Pardue Okamoto and the city staff

2:33:39for organizing and presenting a very clear public forum.

2:33:42We all learn details about how the city

2:33:44came to be in the current financial situation.

2:33:47There seem to be no easy solutions some future budget

2:33:51cuts seem inevitable but I urge that there

2:33:53be no cuts to public safety.

2:33:56We can't cut the budget of our police

2:33:58who work day and night to protect us from crime.

2:34:01We can't make cuts to the fire department

2:34:03it is crucial to maintain the paramedics on each engine

2:34:06to save lives during the last few years

2:34:09of my father in law's life.

2:34:11We had to call 9 1 1 several times the fire department

2:34:15always arrive first already starting to stabilize him

2:34:18before the ambulance arrived.

2:34:21These critical lifesaving minutes can't be cut

2:34:25the threat of wildfire is real.

2:34:27We've all watched as entire communities were

2:34:29wiped out by fast moving fire.

2:34:33Our fire department was successful in motivating

2:34:35and in some cases forcing vegetation management

2:34:38work on private property.

2:34:40Last year the department started the arduous task of catch

2:34:43up with their huge effort of bringing private properties up

2:34:46to the vegetation management code

2:34:49more work needs to be done this spring

2:34:50and beyond to get lagging property owners

2:34:54to comply with the ordinances.

2:34:57City property as well needs to be brought into compliance

2:35:00all of this is necessary to reduce the threat

2:35:03of neighborhoods burning.

2:35:04All of this requires constant funding The police department

2:35:08has begun the process of defining routes

2:35:11into Szabo fishing a system by which orderly evacuations

2:35:14can be orchestrated.

2:35:15We simply can't afford to compromise these efforts being

2:35:18made by police and fire departments

2:35:21and the efforts of our many of our residents

2:35:23to mobilize work toward making El Serino a safer

2:35:26place to live.

2:35:27Thank you.

2:35:28Thank you.

2:35:29Next speakers Howdy Gowdy followed

2:35:31by Jeff Goni Good evening Mayor and Council members.

2:35:36My name is how to go in I live in El Cerrito

2:35:39so I also want to thank you for the town hall on Saturday

2:35:44and the discussion here tonight.

2:35:46It's very informative.

2:35:49But I hope you'll take this as a constructive criticism

2:35:54You know as a forecast with this kind of posed as I

2:36:02sophisticated way to be looking at the future

2:36:05to to basically say oh we'll have 5 percent growth year

2:36:083 percent growth here study no problem.

2:36:11That's really naive.

2:36:13I mean I recognize there was a slight about risks presented

2:36:17but they're not quantified.

2:36:18I mean if we're really going to be serious about forecasting

2:36:21you have to look at the history of variability of revenues

2:36:26expenses and actually forecasts for that.

2:36:28So you don't just say we've got straight line trends.

2:36:31You say how much deviation could we have from that trend

2:36:35given something like that.

2:36:36I mean that's realistic.

2:36:38This is not realistic.

2:36:39You're looking so really this is about resiliency

2:36:43and taking seriously the responsibility

2:36:46to have the reserves when you need them.

2:36:50And you know kind of going back to that first graph of you

2:36:54know revenues chasing expenses in a straight line

2:36:59It shows the city is operating like a hummingbird.

2:37:02Basically it's like flipping from flower to flower

2:37:04to get the next little you know increment of nectar

2:37:08no reserves.

2:37:09You know it's like it's just not sustainable

2:37:13so we have to think you know more like a storage minded

2:37:18animal a whale or something that you know builds up reserves

2:37:22and that's that's what it's for and that's resiliency

2:37:25and you can go you know through long stretches of downtime

2:37:30and if you really just are honest about the volatility

2:37:33of your revenue and expenses you have to build more more

2:37:41reserves for that condition.

2:37:43So a lot of other things.

2:37:46But you know I guess one thought is just Well

2:37:52I've noticed one line item so it's charged for service

2:37:55I don't really know what it is but it

2:37:56dropped a million dollars from last year to this year.

2:37:59So you're talking about a one time

2:38:02you know a cut of five hundred thousand dollars

2:38:04but you have these variability from one year to the next.

2:38:08And you know it'd be helpful to know what those mean it had

2:38:11been that line had been growing for several years

2:38:14prior very rapidly and then it falls.

2:38:16So I don't know what that is.

2:38:18Maybe it's been explained in one of the other discussions

2:38:21but it's just an example where you know

2:38:25we had this big list of a bunch of small things

2:38:27that doesn't even add up to a million dollars

2:38:29and they're all things that really

2:38:31we should probably keep doing.

2:38:33And I'm for one not as averse to you

2:38:37know paying more for the services that we value.

2:38:41I don't think this staff is bloated.

2:38:44I think they're small and they work hard

2:38:46and they are a hummingbird basically This community needs

2:38:50to help them build some reserves so they're not just

2:38:54flitting from one to the next.

2:38:55Thanks.

2:38:56Thank you.

2:38:57Thanks Jeff for Bernie followed by Miley and George.

2:39:00I think it's Jerry.

2:39:01I remember you from Saturday says Jerry

2:39:03for Joni Higher Being a Mr. Fidell

2:39:11before I forget I think your wife

2:39:13and minor Facebook friends.

2:39:16I'm like so we have some kind of connection.

2:39:19I like her tonight.

2:39:20Thank you very much.

2:39:22Boy it was a little rough when they hear from you.

2:39:24You know I complain about it but don't

2:39:26know that much about it really.

2:39:27The school board district in that after all these bond

2:39:31issues that my elementary school Fairmont is in disrepair

2:39:37after Korematsu and L Street Ohi and Imperial Valley

2:39:40high and all these great improvements to it and Harding

2:39:43and then to see that Fairmont was

2:39:46kind of left by the wayside.

2:39:47Now I'm retired I get to drive by there

2:39:49and fortunately if you go by there when school it's out you

2:39:52have to go one mile an hour because there's all

2:39:54these wonderful kids and parents around

2:39:56and they're using library kind of cool

2:39:58but that was a little bit of a shocker.

2:40:00And thanks for holding their feet to the fire and we

2:40:03need to keep that up.

2:40:05We saw Saturday as well and I I think I'm kind of paraphrasing

2:40:10everyone else I think are backing them

2:40:11up and backing up all of views.

2:40:13We kind of have to provide for the worst case scenario

2:40:17and we all here in the community have to back that.

2:40:23I mean how are we got her we got here.

2:40:25I mean it's a tough one a lot of tough decisions

2:40:28but we have to do that.

2:40:30So the decisions you need to make and like speaker

2:40:35before me said just trying to nip here and nip there now

2:40:38solid things have to happen and they have to sustain

2:40:41that prepare for the worst case scenario hope and let numbers

2:40:45pull us back to other places.

2:40:47But for now we really have to really have to dig in

2:40:51and and once again you know our our wonderful fire

2:40:55department and police departments need to be backed.

2:40:59But all the rest of it you will be OK you know until there's

2:41:03time to as as city manager said You know we've had

2:41:06these optimistic wonderful goals that we have to put on hold cut

2:41:11some stuff cut programs cut all that

2:41:14and we'll work on that optimistic list over time

2:41:19and we'll get more of these with you thank you thank you.

2:41:22Next speakers Marlene George followed by Denise

2:41:24thanks to her Good evening.

2:41:30My name is Marlene George and I'm a resident develops Fredo.

2:41:35I also attended the workshop on Saturday

2:41:41and I also have been studying the city

2:41:44budget for the last few years and math is not my strong suit.

2:41:48Numbers are not my strong suit so bear with me

2:41:52but I do have some specific thoughts and recommendations

2:41:55and I hope that for the next meeting in two weeks

2:41:58that the chart that we saw or the PowerPoint will have some

2:42:04of these ideas for consideration and that the city is

2:42:09true to their word that they do want to work with the community

2:42:12and that they're open minded.

2:42:14It seems to me that at least 10 percent reductions

2:42:16need to be made and that we are going

2:42:18to have to reduce services.

2:42:20And I do not agree with this the previous speaker

2:42:23I would not like to see any layoffs in Eldorado.

2:42:27I think that we have demonstrated over the years

2:42:30that we are a very humane city that we care about people

2:42:33we care about our employees and I would hope that that

2:42:36would be the last resort.

2:42:38And I'd like to echo what others have said.

2:42:41I think public safety is a priority.

2:42:43I would like to see that wildfire prevention be

2:42:47a separate and distinct category within public safety

2:42:51because the fire the wildfire risk in this area

2:42:55is very high as you know.

2:42:58I would like to see the consultants that you

2:43:01all talked about on Saturday.

2:43:03I think that should be a consideration to be cut.

2:43:07You mentioned that the median salary for the employees

2:43:10is above average because we have excellent employees

2:43:13and I agree I think we do.

2:43:15So My question is why do we need all of these consultants.

2:43:18I think that the specialized information that we're seeking

2:43:21could be brought into the city in a different way.

2:43:24And I want give you an example.

2:43:26There is the term protection test force

2:43:30that is staffed by Asia a jury.

2:43:33She is a rock star.

2:43:34But there is a consultant that's running those meetings

2:43:37and that's like a duplication there's

2:43:39her salary and the consultants.

2:43:41We don't really need consultants that

2:43:43can go as far as I'm concerned.

2:43:45Also if you're going to cut the senior center

2:43:47these seniors have been paying taxes illustrator for years.

2:43:50I looked at the parks and recreation budget

2:43:53and they are self-funded for a certain amount

2:43:56like four point four million.

2:43:58And if we reduce the parks and recreation budget

2:44:01down to where it's self-funded I think there's

2:44:03considerable savings there.

2:44:05I don't know what that would actually

2:44:06mean in terms of the services but I

2:44:09think that we need to consider that I also

2:44:12think that the ideas on Saturday for revenue

2:44:15being very aggressive about revenue.

2:44:17I think we should charge for MSA services

2:44:19for those who have medical insurance

2:44:22The Nine one one calls.

2:44:24Other cities do it.

2:44:25I think we should consider it.

2:44:27I also think that there's Portola I don't know what's

2:44:32happening with the portal site there's a development

2:44:35opportunity there was mentioned on Saturday

2:44:37about aggressive business businesses for revenue I think

2:44:41that the city should think about creating a community business

2:44:45task force to really aggressively look

2:44:47at bringing businesses into Australia to increase revenues.

2:44:51Thank you.

2:44:51Great.

2:44:52Thank you.

2:44:52The next speaker is Denny Sangster followed

2:44:54by Sherry Dubner Hi there.

2:45:02Back again I want to start with paradise the city manager

2:45:06from Paradise said about three weeks ago

2:45:09that paradise is generally empty and it's

2:45:12going to be another two to three years before even

2:45:15a significant number of residents

2:45:16come back and right now they're at year two and half

2:45:19with zero income zero income.

2:45:22This could be Elsa Rito just a couple

2:45:25of points I want to first address fire overtime I know

2:45:31I mentioned it on Saturday but I think the community has

2:45:35a misunderstanding about fire overtime

2:45:38when they go out on the OAS calls

2:45:40and I'm glad that our city manager committed to providing

2:45:45appeal out of those numbers and the reimbursement rate

2:45:48and we've heard here today from our Finance Director

2:45:51several times about the increasing overtime

2:45:54but I haven't heard how much of that is related to oh yes

2:45:57and how much of that is actually reimbursable and are

2:46:00we really getting fully reimbursed.

2:46:01So those are things that as the council

2:46:03I hope you are putting heat on the city team

2:46:06to provide those numbers and you need

2:46:08to let us know what those are as well because that's important.

2:46:13And as climate change as you've talked about many many times

2:46:17I suspect that we're going to need more and more firemen

2:46:20to go out on these calls and hopefully it

2:46:21won't be our community or surrounding communities

2:46:25but I'm so grateful that they're willing to put their lives

2:46:28on the line and go on those calls

2:46:29because without them more than paradise would have been burned

2:46:32to the ground Chico would have been gone and so would others

2:46:35so that's important.

2:46:37Second as we've heard from other speakers

2:46:40the charts really don't appear to assume negative consequences

2:46:45the environment that we're in.

2:46:46I've never seen a budget like this.

2:46:48I'm assuming that this is not a true budget that we're seeing

2:46:51but just some excerpt of the budget at least

2:46:53I hope this isn't the real budget because it

2:46:56wouldn't be adequate.

2:46:58And to things that I haven't heard here

2:47:01which I find really disturbing.

2:47:03One is that there continues to be no discussion

2:47:06about diversifying the tax base you're sunk unless you

2:47:10diversify you're done.

2:47:12This is headed towards bankruptcy and if you

2:47:14don't see that let me be clear.

2:47:16You're bankrupt right now.

2:47:17You are bankrupt.

2:47:18If you had to pay all of your obligations

2:47:20you're gone you're toast.

2:47:22You're gone.

2:47:23You can't get out of this.

2:47:24I'm very optimistic that this is not a Don situation.

2:47:27But if you're continuing the way you're going you're done.

2:47:31And I don't think there appears to be any focus on looking

2:47:35at revenues there's there's ways to generate revenue

2:47:38here and even monetize some of the services

2:47:41the last speaker just talked about reimbursing

2:47:44paramedic calls Greg you were sitting on the fab six

2:47:48years ago when I presented a very detailed report on how

2:47:53to get money back from a lot of the fire services

2:47:57and council didn't seem to be interested in even

2:48:01looking at that.

2:48:02And the city manager did not either.

2:48:03So there are ways of getting that and I think

2:48:07my last point to Councilman Quito

2:48:11you said things have been hidden.

2:48:12I don't believe they've been hidden.

2:48:13They've and they're in plain view.

2:48:15And I've been talking about many of these issues

2:48:17for 15 years or more.

2:48:18He's heard me for all three of his times

2:48:21on the council they're hidden if you don't want to know them.

2:48:27And I think that's where we've been

2:48:28is that people haven't wanted to know them and please know them.

2:48:31There are things to do that can save this community

2:48:33and make it an even better community

2:48:35and help the employees be more successful.

2:48:38And you'll be more successful as council people thank you.

2:48:43Final speaker at this time is Sherry Abner Good evening.

2:48:56I want to thank you too I was at the meeting

2:48:58Saturday morning in what turned into the afternoon

2:49:02and I thought there were a lot of interesting ideas

2:49:06and a lot of I think one of the messages I heard

2:49:13was that of the need for more oversight from the city council

2:49:17and I heard that at a previous meeting

2:49:19to when we were talking about the surveillance ordinance

2:49:23and I feel like maybe it's more of a common theme

2:49:26and especially in this city where it feels like I heard

2:49:30the comments before Well we've hired

2:49:32a city manager that's with you.

2:49:33Therefore you know it's not just about the city manager it's

2:49:37about the city council providing oversight

2:49:40and it can't work or you just the city manager says well

2:49:43we're asking the council for direction

2:49:46but the council can't really give direction because either

2:49:49you're not looking or you don't have all the facts

2:49:53or maybe you don't have all the facts.

2:49:57So I feel like around the budget I have to agree with most

2:50:02of the speakers here tonight I don't feel like what you're

2:50:06getting is still the kind of presentation

2:50:09that you need for the kinds of decisions

2:50:11that you have to make.

2:50:13That's one thing I'm also speaking from being

2:50:17a public employee for 30 years so I have to I have to move out

2:50:20of my El Salvador resident and talk about what it was

2:50:23like working in the city not this one but a city where

2:50:27we've had layoffs.

2:50:28A city where I as a manager had to make 10 percent

2:50:32cuts in my department every year for five years

2:50:35I had no cost of living increase for probably

2:50:39at least five years maybe more.

2:50:41I when we had our first cola I couldn't believe it.

2:50:44I was I was shocked and I'm not saying that that's what I think

2:50:48we should be for people because I don't think I don't want

2:50:52to wish the Negative on anyone but in terms

2:50:54of making those changes was better than to saying

2:50:58a layoff is to figure out and have your departments

2:51:00think about what kind of cuts how to be leaner.

2:51:03There's always I'm sorry but I know in public sector there are

2:51:09things that you can do to reduce waste

2:51:12and at some point you can't at some point it's bare bones

2:51:14and then you have to think about other things.

2:51:16But managers need to be creative they need to go out someone

2:51:20mentioned grant writers I don't know

2:51:21if the city has a grant writer but that's what managers do.

2:51:25They should be out looking for funding.

2:51:27They should be doing that kind of work.

2:51:29So I know my time's almost up but I really hope that you'll

2:51:33be thoughtful about this when you

2:51:34take away a service it's hard to start it up again so I hopeful.

2:51:39Philosophically you don't just think let's just

2:51:41cut the service really think about what happens when

2:51:44that happens in your community.

2:51:46It's hard to get your residents back in that service again.

2:51:50So anyways thank you.

2:51:52All right.

2:51:52Thank you.

2:51:53We do have one additional speaker

2:51:55and Linda Keen thank you.

2:52:02I'm Linda Cain I live in El Cerrito.

2:52:04I want to thank all of you for sending the issue I backup all

2:52:07of the previous speakers and they're all much wiser than I

2:52:10am as far as finances and questions step in on I really

2:52:15I do wonder how did this happen.

2:52:18Even still I wonder you know it's like oh please start now

2:52:22to to pay attention to these little details

2:52:26and find out that you know the guy who

2:52:29said programs can just be cut.

2:52:31Well maybe he's like working full time

2:52:33somewhere else thinking about it.

2:52:35I'm a senior I just started being a senior a few years ago.

2:52:38I use the senior center several times a week and the people

2:52:41there I know they're working with the people who have

2:52:45mental problems and you know there's people who just like

2:52:48come in and they need a cup of coffee

2:52:50and they need to meet other seniors

2:52:52you know that is not a dispensable program in my mind.

2:52:55And the library the extended hours so many people

2:52:58use the library.

2:52:58The children go there after school

2:53:00the seniors go there You know we all use the library

2:53:03and they have.

2:53:04They work really hard using the evening hours

2:53:07to present all kind of activities that enhance

2:53:09our life that aren't expensive so you know

2:53:13programs are expensive too.

2:53:14Yes let's cut let's try not to take away people's jobs.

2:53:18Try to consider everything and just you

2:53:21know maybe we could go to 90 percent of something 95 percent

2:53:25of something but keep like somebody said if you throw

2:53:27a program away how do we get it back

2:53:30and as a senior I may not be around by the time the program

2:53:33gets reinstituted you know and seniors

2:53:37need to be with each other.

2:53:38They need a chance to have activities to keep them going

2:53:41so I just want to speak up for the senior programs

2:53:43in the library Thanks.

2:53:46Thank you.

2:53:47Any other speakers.

2:53:49Seeing will bring it back to the Council

2:53:53for Do you feel you've got Mr. Do you feel you've gotten

2:54:00enough direction from us or do you need additional direction

2:54:08but have you shared with me have been helpful putting you

2:54:11on the art BDD side for example and taking some of the comments

2:54:18that we just heard that too has been

2:54:20helpful at this point in time.

2:54:24Like I said we have a number of different options.

2:54:29We could do one million with some of these

2:54:32and if you want more than that.

2:54:33That would involve layoffs and you know at that point yet.

2:54:39But staff would make these adjustments

2:54:43and we need back to you again.

2:54:45So walk me through what the process is what is it

2:54:48that you are envisioning If the guidance that you've heard

2:54:54tonight how will it be implemented

2:54:56how will it be folded into the presentation two

2:54:59weeks from now.

2:54:59For example actually it's a two but responsive because

2:55:04means for the short term which is your mid-year adjustment

2:55:06for the current fiscal year.

2:55:08But I think more importantly for the next biennial budget cycle

2:55:11which you've just kicked off staff will go back and start

2:55:17with a baseline estimate and start refining the numbers

2:55:21with a lot more to detail and then come back

2:55:25with the amount that really needs to be adjusted

2:55:30in order to be able to have a balanced budget at that point

2:55:32in time and that process goes through multiple cycles

2:55:35multiple iterations And so when we come back to you again.

2:55:40But on the 18th of February we would ask you

2:55:43for the short term fix but also with an eye

2:55:46to making adjustments in the long term.

2:55:48So the balanced budget does not grow our reserve.

2:55:53And that's been evidenced by what

2:55:55we've been doing potentially over the last five years.

2:55:59The it would.

2:56:01Yes.

2:56:03I would compelled staff to at least come back with

2:56:09and this is where it gets painful.

2:56:11But identifying at least two million dollars worth of cuts

2:56:15we may not take them all.

2:56:16We may not use them all but if we

2:56:18don't have the information we can't get

2:56:21close to two million dollars.

2:56:23So for me it would be the guidance

2:56:26I would ask tonight would before for staff

2:56:29to identify at least two million dollars worth of cuts

2:56:32for our budget that doesn't speak to grant writing

2:56:37and new revenues and diversifying our businesses

2:56:44and diversifying our are the type of tax base

2:56:48that we potentially have.

2:56:50That's the revenue side.

2:56:52We're not you know revenues new revenues are not

2:56:55going to fall out of the tree and start next year so we're

2:57:00gonna have to invest in getting new revenues

2:57:04whether it's we said it jokingly earlier a casino to car dealers

2:57:10would be awesome if we could get a car dealer back.

2:57:13We've lost one and that's a tremendous amount

2:57:15of tax revenue that's that's gone you know a hotel.

2:57:20You know we'd look at our Barton our largest

2:57:23parcel right now is the Orchard Supply hardware triangle.

2:57:28If that was a dealer hotel dealer on the ground floor

2:57:32and a hotel above we would have tax

2:57:35revenue from occupancy tax and tax revenue from selling cars.

2:57:40So I mean that's not gonna happen overnight right.

2:57:46We we already had Chevy in there looking at that parcel almost

2:57:51a year ago and they couldn't make it to pen pencil

2:57:54and so they walked away already but cuts we can make.

2:57:59And so we may not make all the cuts that you bring to us

2:58:02but I would strongly ask and urge staff

2:58:07to look at the lime colored line which was 2

2:58:10million dollars worth of cuts.

2:58:12Thank you I'm alone but say Your Honor if I may thank you

2:58:17because when you asked the question about direction

2:58:21again this is the first iteration

2:58:24of having this discussion with you on our biennial budget.

2:58:27And as Mark indicated this is going to be refined over time.

2:58:31This was meant to be a high level discussion

2:58:34but it's also meant to gauge your comfort level you know

2:58:37some of you are saying okay we can make cuts

2:58:39but don't make cuts to public safety.

2:58:41I don't know that that's necessarily possible to do.

2:58:44I don't know.

2:58:45But what your direction to us would

2:58:47be is those types of things I heard you know is it.

2:58:51Is it the will of the council that we should make those two

2:58:54million dollar cuts without cuts to public safety

2:58:57and this is also going for example.

2:59:00But this is also going into the strategic planning process

2:59:03that we are right in the middle of.

2:59:04So over the next month we've been asking the community

2:59:07to help us prioritize those services so that you have

2:59:11the best information if you give us direction

2:59:13tonight for example as you said to go and look

2:59:16at 2 million dollars in cuts.

2:59:17We will start that process we will

2:59:19start to identify that process but we

2:59:21won't refine that process.

2:59:23We will continue to refine that process

2:59:25as those priorities are refined by the community

2:59:28and by all of you.

2:59:29So I just want to make that clear that this was

2:59:32not meant to be a list of things that we're proposing right now.

2:59:35It is meant to really get the conversation started

2:59:38and hear your comfort level as to what it is you want to do.

2:59:42Another example is the Fourth of July festival.

2:59:46That is our beloved event every year.

2:59:48But we start planning that now.

2:59:50And if that is something that you want us to consider

2:59:52bringing back as a cut or a reduction in scope

2:59:56or whatever that is actually some direction

2:59:58we would need to hear from you tonight.

3:00:01Go ahead Mr. Q2 Thank you Mayor.

3:00:04I think Karen knows how I feel about this to definitely do

3:00:08what we can in the short term and in the short term

3:00:11we can cut to say 50000 thousand dollars plus this year

3:00:17with canceling the Fourth of July

3:00:20and then I hope we can look at that

3:00:23when it comes to other things.

3:00:27Know that I put it upon myself to find

3:00:32new entrepreneurs and new people to open a business.

3:00:38We have our Get out.

3:00:40I have talked to last malaise I was one

3:00:43of the last malaise to town.

3:00:45I've been talking to three car dealerships who are interested

3:00:49but they have some concerns and this is a concern is what

3:00:54we're going through right now.

3:00:56Some know that with both Patel families

3:01:02they want to do it because they weren't happy with our city

3:01:05hall being not pro-business.

3:01:09So I helped the Patel family.

3:01:14They changed their mind and they are

3:01:16finally building that hotel.

3:01:18So I challenged my colleagues.

3:01:20We all need to do this.

3:01:21It's not just me.

3:01:23I encourage staff to just ask and that's

3:01:27what I've been doing just ask all they can say is yes or no.

3:01:31So let's make that chance and let's create more retail here.

3:01:36I have checked in with every coffee company

3:01:38independent coffee company to move into our new buildings

3:01:43that are being built that there are pot companies marijuana

3:01:48companies that would love to take

3:01:50the place of the company that is taking their time and opening.

3:01:56So these are the things that we need to do as a council.

3:02:00That's part of our job description

3:02:02because we don't have an economic development.

3:02:05You know it took me months it took me a year

3:02:08and a half to finally have staff say oh the small Smalls

3:02:13they've they wanted a change they wanted a big bear

3:02:15restaurant you know and I said no these people

3:02:18are ready to move.

3:02:19The last city manager laughed at me

3:02:21and said Are you sure they can afford Yeah.

3:02:23So no it's we have to look outside the box

3:02:28and I am committed in doing that.

3:02:30I'm committed to going to Dublin and conquer

3:02:33and speaking to the owner of those car dealerships

3:02:36and persuade them to move to El Serino.

3:02:39We had the British motor company that sold Jaguars

3:02:42and it was very popular it was busy we can do this again

3:02:47but we need to promote this city.

3:02:49And I look forward and my colleagues

3:02:52in helping me promote this city and you promote the city

3:02:56by going outside of this city.

3:02:58Don't spend 24 hours a day in our little city.

3:03:02You need to go outside meet the people

3:03:04that that own these businesses outside because they're

3:03:07not here.

3:03:08And also Rita we have to look elsewhere Madison

3:03:11Avenue will not move to El Serino

3:03:13those those stores they said no.

3:03:16They say they've gave up on hilltop.

3:03:18They don't consider Reno as a place to make money.

3:03:21But we have Asian entrepreneurs and entrepreneurs

3:03:24and in different nationalities that

3:03:27would be more than happy to open a mall with the off side is.

3:03:31So I want residents to know that I am committed as someone who

3:03:36grew up here that I'm committed to makes making sure

3:03:39that we get more tax money and more bang for your buck

3:03:43when it comes to a car dealership.

3:03:47I'm part of the Alfa Romeo and Fiat clubs

3:03:50and I drive sports cars and I was part of the group that

3:03:54wanted to bring out for me on fiat back

3:03:56and they did come back.

3:03:58But when I spoke to city hall people

3:04:00here they said no we want to get out of the car dealership

3:04:05and do something more small business.

3:04:08So I say no to that.

3:04:10We need to do whatever we can to get businesses open here.

3:04:14And we you know you see Albany doing yet you

3:04:17see an old doing it and it's time that we

3:04:20become more business friendly.

3:04:22Listening to our chamber.

3:04:24So white I'm hoping that my colleagues

3:04:27here will help me do this.

3:04:29I can't do it by myself.

3:04:32Thank you.

3:04:33Thank you.

3:04:36The question on the table is about the Fourth of July.

3:04:41Council member Perdue Okamoto the Fourth of July I

3:04:45don't want to cancel.

3:04:48I think that we have very few things in the city that

3:04:52provide a sense of identity.

3:04:56That's something that I I know when I moved to Alfredo I

3:04:59felt like Sarita was lacking.

3:05:03Something that made Elsa Rito special and unique

3:05:05and I think that our 4th of July celebration is probably

3:05:09the most special and unique cultural and artistic

3:05:13event that we have.

3:05:15And it's grown and it's wildly successful.

3:05:18Now that being said I think there's definitely

3:05:21room for cutting back.

3:05:25I know that there's a lot of staff members

3:05:29that go in and go to boost things like that is obviously

3:05:34not something that's necessary.

3:05:36It's you know we've enjoyed it over the years

3:05:39but that doesn't seem like something

3:05:40that we should be shelling out overtime for at this point.

3:05:44There's a potential of maybe shortening

3:05:48it from two days to one day that might help as well.

3:05:52But I think overall when we when we do

3:05:58cuts we're gonna have to look at things

3:06:00with a scalpel and not an ax.

3:06:03So let's let's take a look at everything

3:06:06and not leave things unturned and find out where

3:06:09we can salvage what we can.

3:06:13I do believe there's probably some other city events that

3:06:17might need to be cut that are not quite as

3:06:22big and successful as the Fourth of July event

3:06:26which also rack up over time for our various staff members

3:06:33so I would I'll sort it with that can I

3:06:36get a motion to extend to 10 fifty moved second.

3:06:44All those in favor of extending the meeting to 10

3:06:46fifty please say I I posed but it showed

3:06:51the record passed unanimously.

3:06:52Mr. Fidelio Fourth of July.

3:06:54Wow.

3:06:57It's a really tough one almost like the educational thing

3:07:00that I talked about because we're talking about kids

3:07:03as Rochelle said who we are as a city

3:07:06and being on the Arts Commission.

3:07:10We've given a lot to that event and it makes

3:07:12me happier than anything we do.

3:07:15But if we're gonna talk about not cutting public safety

3:07:19we need to talk about things that

3:07:21don't involve public safety.

3:07:23And I would be I would consider that we're in such a state

3:07:26that we need to consider that.

3:07:28And it's one big chunk.

3:07:31And people can barbecue in their backyard that day

3:07:33and we maybe can have a goal of bringing it back

3:07:36in two years I would it hurts because I go

3:07:42to both days I bring friends.

3:07:44We sit there.

3:07:46We communicate.

3:07:47We network.

3:07:48We talk to people we listen to music This is serious enough.

3:07:52I was just going to say our city is resolved now

3:07:54to deal with this and if we don't

3:07:56deal with it a big chunk way we're

3:07:58not being resolved to this.

3:08:01So I would say yes yes to what to considering

3:08:07cutting the Fourth of July.

3:08:08So five finger waving I'll ask how many people remember

3:08:14that Rotary is who started the Fourth of July event few people

3:08:20you know.

3:08:21So Rotary ran the Fourth of July for many years

3:08:27and it was not staff driven event.

3:08:30And so it there's no question that you know Corey Mason is

3:08:36phenomenal with his world one stage

3:08:39and that is a phenomenal add on to the Fourth of July fare

3:08:45that started out with plastic bottles and Ring Toss

3:08:50and I mean it is so volunteer this

3:08:55is to say Chris that you've got a fantastic world class

3:08:59event that that we've enjoyed for many many years.

3:09:04Your staff does phenomenal work but it

3:09:09has grown beyond it's it's grown beyond what

3:09:15it needs to be to draw.

3:09:17Elsa Rito residents we're not Solano Avenue stroll.

3:09:21We're.

3:09:22We're.

3:09:23I don't think we can sustain having

3:09:26so many visitors to our community

3:09:29drains on our staff resources it drains on our public resources

3:09:33our public safety resources.

3:09:36So I don't know what it would look like if you scaled it back

3:09:40or even if we can scale it back.

3:09:43Because if we're having it to me we're gonna get a lot of people

3:09:48show up and they'll be grossly disappointed in who

3:09:51knows what disappointed people will do.

3:09:54So I I am unfortunately probably in the camp

3:10:00of that change it or cancel it.

3:10:07And and I don't.

3:10:08Mr. Mason's not here tonight and I

3:10:09know he'll be heartbroken at that prospect

3:10:13because he has put over a decade of his life

3:10:17into putting into putting world went on.

3:10:19And this is not to to criticize the event like Mr. FDLE

3:10:25and Miss Moore should show part of Yoko auto

3:10:27and I value that event.

3:10:29It is one of our signature events.

3:10:34But it started out as a very small small thing.

3:10:41And so I mean I don't know.

3:10:46I mean we've got another event coming up in April Earth Day

3:10:50and that takes a tremendous amount of overtime and none

3:10:54of that's public safety time so I don't I

3:10:56mean I don't know what the status of Earth Day

3:11:00is if we if we're gonna start looking at these events.

3:11:06At what point do we needed to talk about these.

3:11:10So what I'd love to do Karen is you know

3:11:14is make sure that the public is understanding

3:11:18what we're considering and potentially

3:11:21at the next agenda item.

3:11:22We make it very clear that these are some of the cuts

3:11:26that we're talking about so that we get an opportunity

3:11:29for people to come in and express

3:11:31their their overall concerns and maybe maybe out there

3:11:37there's someone out there that's willing to underwrite this

3:11:41in some fashion and step forward and say hey we're we would like

3:11:46to keep also you know going and we've got maybe it's John

3:11:49Fogarty We've got one hundred thousand dollars to help

3:11:53you to put this event on.

3:11:56But we can't get John to John's attention

3:11:58unless we make it not make it a ten thirty eight night decision

3:12:04and make it a decision that the community is aware of.

3:12:07So for me I'm not I think we're giving guidance that we need

3:12:12to look at both our day end and Fourth of July

3:12:16and figure out what they might look like if we were to scale

3:12:19back staffing those and maybe using more volunteers

3:12:23and going back to the volunteer model

3:12:26that we had 30 years ago when Rotary ran the event seeking

3:12:31a sponsor seeking a sponsor a corporate sponsor

3:12:35and I would like since I believe the Fourth of July

3:12:39is the best event that we have.

3:12:43I would like to see where all of the other events

3:12:48also cost so that we could maybe do a comparison.

3:12:51I would I would be just you know off the top of my head

3:12:55and I maybe I'm forgetting about something

3:12:57but willing to like cut all of the other events

3:13:00to keep the Fourth of July.

3:13:02I mean that's just kind of how I feel about it.

3:13:04Mm hmm.

3:13:05Mayor I'd like to say regarding that these are times

3:13:13of austerity and to use that word again

3:13:15and we are here to make the tough changes.

3:13:20So I'd rather work out Burke and programs

3:13:25and canceling dates and programs instead of laying off people.

3:13:29So it's one or the other.

3:13:31So if we cancel this maybe one year or two years

3:13:35just to save one hundred thousand dollars

3:13:38I support that.

3:13:39There's another thing I wanted to mention

3:13:41as well is are senior services.

3:13:45I'm not sure if residents know but the city of San Francisco

3:13:49the city of Fremont and many other cities they're not

3:13:53dealing with senior services they have nonprofits

3:13:57that take care of that.

3:13:58So I would like to have the city manager look at that

3:14:02and see if we save money if we lose money is it worthwhile

3:14:08or should we not do it.

3:14:09But this needs to be looked at as well.

3:14:13Looking back on it and I know you we're looking at a decision

3:14:20that we made a few years ago you know I was told that we would

3:14:24get those top four hundred and fifty thousand dollars back

3:14:28for that temporary building Looks

3:14:30like we're never going to get back.

3:14:32So I'm hoping we can look at whatever we can do

3:14:35to either cancel that and we have other buildings here

3:14:41we can use like the community center

3:14:44there's an empty Senior Center next door.

3:14:47There are non profits there are churches that

3:14:50would be more than happy to takeover

3:14:52something We cannot afford.

3:14:55So look at let's see what San Francisco is doing Let's see

3:14:58what the city of Fremont is doing everything

3:15:01is on the table and I don't know I'm not sure people realize

3:15:05how difficult this this is.

3:15:08But we need to look at everything in comes Marketo

3:15:13the for many many many years.

3:15:15And maybe we haven't said it in the last couple

3:15:17buttered budget settings it.

3:15:19We have intentionally priced our senior services

3:15:24well below the cost so we have we have to speak

3:15:28to Miss Kane's comments.

3:15:30We have been subsidizing the senior services here

3:15:34for a very long time to talk about 4th

3:15:37of July being a tradition subsidize

3:15:40the senior services is much longer

3:15:43and richer tradition than the Fourth of July.

3:15:48So I understand what you're saying

3:15:51that it needs to be evaluated.

3:15:53We had a comment tonight about the fact

3:15:55that we should be reducing the Parker wrecked down

3:16:00to the services that are self-sustaining

3:16:03and unfortunately after school care and our daycares all pay

3:16:11for themselves easily.

3:16:13And there are other services they like the Fourth of July

3:16:18the pool at times of the year the senior services that don't

3:16:23pay for themselves and those are some of the services

3:16:26that we would be talking about reducing

3:16:31to get to that speaker's request which is to get us

3:16:35down to four point four million dollars

3:16:36in the recreation facility.

3:16:38So these are I think we've all said it.

3:16:42I think the public has said it is going

3:16:44to be very a series of very very difficult decisions

3:16:49that people are not going to enjoy the outcome

3:16:54and we won't enjoy making the decisions.

3:16:58Council member partook modest request this is a valid one

3:17:02for us at the next meeting.

3:17:04As we're dealing with mid-year to look

3:17:06at the cost of all events that we put on

3:17:10Try safety day Loving Day Martin Luther King Day

3:17:17volunteer appreciation dinner.

3:17:20The Fourth of July including the July 3rd.

3:17:25Those are some the ones and then all of the.

3:17:28I don't know.

3:17:29What about the events in in October the arts events

3:17:33in October National Night Out.

3:17:35These are these are all different events that we should

3:17:37be looking at that draw on staff resources

3:17:43both public safety and non non non public safety

3:17:49so if that could peace could be brought forward

3:17:52at the next meeting and then I think

3:17:53we'll be in a better position to give you

3:17:54very clear direction on the large events

3:17:58that you're asking us for.

3:18:00Mr. Fidell yeah as just as you're

3:18:02going through your efforts for the next council meeting

3:18:07there's a couple odds and ends here.

3:18:09How you approach the at 2 million dollar cuts.

3:18:12Is there a way to I. Are you going

3:18:14to be telling department heads to come back 10 percent off

3:18:18of every department.

3:18:19Is there a way to say to make it fair here's a percentage.

3:18:23Go find those cuts and come back to us so that you can

3:18:26tally those up because that would seem

3:18:29a fair way to deal with that.

3:18:31There are a number of different ways

3:18:32to do this like you suggest we could say dig 5 percent off

3:18:36or give them a target or give them a goal

3:18:38that they can work towards.

3:18:40And I'm city manager and I would sit down with the department

3:18:42heads and look at their previous performance

3:18:44in the last fiscal year.

3:18:46What's doable and to what Denise made a point that she made

3:18:53and our mayor about needing to rate

3:18:57to raise revenue in new ways and build a

3:18:59new economic development plan.

3:19:01I'm hoping that there was an idea at a Saturday

3:19:04event about a task force.

3:19:06I'm hoping we will get some something on the other side

3:19:08of the ledger coming to us soon so that we can at least explore

3:19:12you know the San Pablo Avenue plan was very inventive

3:19:16a few years ago and it it's doing its job

3:19:21and it was meant to reinvigorate our community

3:19:24and our street and our major thoroughfare it's doing that.

3:19:28I may not be bringing in the revenue

3:19:30but it's taking shape the way our planners

3:19:32have thought it should.

3:19:33But we need some new ideas.

3:19:36And also I wanted to just bring up an old idea that council

3:19:41member for South party Okamoto had mentioned a long time ago

3:19:44you know our our cannabis dispensary may be opening

3:19:48sometime in the next six months I'm not quite sure

3:19:51but she had mentioned previously I don't know if I mentioned it

3:19:54but to target that any money we might have

3:19:56toward our perp's account in some way

3:19:59rather than using it for other things.

3:20:02I'm just saying their ideas like that

3:20:04that maybe we can consider if in fact there are some I know

3:20:08they're having a taxed being taxed too much

3:20:11and there's not a lot of revenue coming

3:20:13in but we do need to address our purse debt that we have.

3:20:16So there there's some way to target

3:20:18those ideas will we be able to discuss those

3:20:21when we have a final vote.

3:20:26Specifically on just giving direction on directing.

3:20:31Would you still do you still think

3:20:32about that about the going straight dippers.

3:20:36Yeah yeah.

3:20:37Possibly and I was also thinking about manufacturing

3:20:42I know there are some people here

3:20:43that are getting giving out our licenses for a dispensary that

3:20:48were interested in manufacturing maybe we

3:20:50could change the city code in certain areas

3:20:53to it is a part of money.

3:20:57If we could direct it in some way.

3:20:59I just want to caution that cannabis sales are

3:21:03certainly not turning up for cities overall

3:21:06that we've been hearing.

3:21:07So we could certainly.

3:21:09Of course we can look into that but the reason

3:21:11that we're cutting the sales tax is not just because the store

3:21:14is in open but because I'm not sure we can expect what

3:21:17we thought originally if that were

3:21:20to happen that would be great.

3:21:21I am completely pessimistic about it.

3:21:25And so to that end I mean I I know we put some very rigorous

3:21:30about buffer zones around our parks and reduce the number

3:21:38of properties that were viable and therefore both but we

3:21:42offered up two licenses and they both ended up the same address

3:21:47it would be wonderful if staff would look at potentially

3:21:52finding what you know is there some of the new retail spaces

3:21:55that are coming in that could potentially serve as a second

3:21:58store front and we in understanding what variances

3:22:03are what changes to our buffer zones we need to do in order

3:22:06to potentially provide that that thought that

3:22:10would be another opportunity to to look

3:22:15at it that and certainly