Regular City Council Meeting April 7, 2020

0:14:13OK.

0:14:14This is Mayor Lyman and I'm going to call this meeting

0:14:16to order and it is 7 o'clock.

0:14:20Can the city clerk please call the roll Thank you Mayor.

0:14:26And the layman doesn't may pretend FDLE was

0:14:35a rooster at night on the moon.

0:14:40Freedom fidelity and Care Council member Abel sin.

0:14:46Yeah council member Part 2.

0:14:49Cuban President council member King TOBY Yeah.

0:14:57We have a quarantine.

0:15:01Excellent at this point we will move on

0:15:05to item 1 which is teleconference and public

0:15:09comment instructions.

0:15:13Thank you Major.

0:15:15So first for city council members and staff

0:15:17that are participating directly through

0:15:19the teleconferencing platform.

0:15:21These remain Please remember to keep your microphones on mute

0:15:25whenever you are not speaking any web cameras that

0:15:29are enabled will be visible on the public livestream

0:15:32except for direct chat to me as the host for technical issues

0:15:36the chat feature has been enable disabled the mayor

0:15:40and I will monitor the raise hand feature if you wish

0:15:43to speak hover over your name on the participant list

0:15:47and select the hand icon in order to raise your hands

0:15:52For those of you calling in via phone only

0:15:55you will not have these features available to you

0:15:57but you can verbally request the mayor for permission to speak.

0:16:01All actions will be taken by a roll call vote and the mayor

0:16:05or I will provide direction and ask

0:16:07for comments from each council member council member.

0:16:10As we've progressed through the meeting for the public

0:16:13participating from home.

0:16:14The period for submitting public comments

0:16:16will remain open until announcing prior to the City

0:16:20Council taking action on the applicable item

0:16:23submitted comments will be read into the record comments

0:16:27for items not on the agenda and comments on Consent Calendar

0:16:30items will be heard during agenda

0:16:32item 3 oral communications to the from the public.

0:16:36All other comments will be heard at the time the agenda

0:16:38is this item is discussed.

0:16:42Comments can be submitted one of two ways via email

0:16:45to city clerk at sea.

0:16:47I dot E L dash sir Rito that C A U S or by voicemail 2 5 1

0:16:560 3 0 8 2 5 5 8 when submitting comments please

0:17:02be sure they are identified in the subject line

0:17:06or stated in the voicemail as public comments

0:17:08not on the agenda or public comments followed by the agenda

0:17:12item number Please also include your name and city

0:17:15of residence for the record.

0:17:17Please note that all information provided

0:17:20public comments including no called with email address

0:17:24or any other personal information written or stated

0:17:27is subject to disclosure on the broadcast teleconference

0:17:30meeting following the meeting.

0:17:32All comments read into the record

0:17:33will be posted on the supplemental materials press

0:17:37with an orange with green lime with the lemon put it

0:17:41in a plastic bag put the figure of explain

0:17:49how much other people are on.

0:17:53I don't want to be silent.

0:17:57Thank you.

0:17:58Following the meeting all comments read into the record

0:18:01will be posted online with supplemental materials

0:18:03and will have personal information redacted.

0:18:06This concludes my instructions.

0:18:08A mere layman.

0:18:09We are ready to move on to the next item on the agenda.

0:18:12I'm just checking to make sure we don't have any questions

0:18:16and we do not.

0:18:17So we we're ready to move on to the next item So

0:18:24that brings us to item 2 wood which is

0:18:27council staff communications.

0:18:32I'm going to ask if there are any staff communications I have

0:18:40none at this time Your Honor.

0:18:41Thank you.

0:18:44All right.

0:18:44I'm going to now go to the city council members.

0:18:52Miss Puerto Okamoto Hi.

0:18:55Yes.

0:18:57Can you hear me.

0:18:58Yes.

0:19:00OK.

0:19:01So today there was a town hall organized by Supervisor John

0:19:06Joya and assembly member Buffy Wicks as well as other county

0:19:12health officials to update us on our cove at 19 situation

0:19:17here in the county.

0:19:18The big takeaway from the meeting

0:19:21is there is a Web site with much of the information in which

0:19:25they shared and that is Contra Costa Health dot org You can

0:19:32also go to C.C. health dot org I tried both and both lead you

0:19:37eventually to the same information the Web

0:19:41site provides information statistics prevention

0:19:46what to do if you're sick.

0:19:48Health services updates it was very informative today.

0:19:53They were letting us know exactly where we're standing

0:19:56right now in the county.

0:19:59And if you go to this Web site you'll be able to see

0:20:01much of this information.

0:20:03And it's updated frequently.

0:20:06So today this afternoon I checked the latest statistics

0:20:10and the total cases of Kobe 19 in Contra Costa County

0:20:15are four hundred and forty two the total amount

0:20:19of people tested are five thousand eight hundred

0:20:22and thirty one the total in hospital in the county

0:20:27are twenty nine and deaths are at seven if you click

0:20:32on the dashboard you can see a city specific statistics it's

0:20:37very interesting for the city of El Serino

0:20:40as of today we have five cases in which I'm glad to say

0:20:46if there's any good news it's you know we're always

0:20:49searching for good news in what seems like dark days right now.

0:20:52The city of El Serino had the least amount of cases

0:20:55per capita in the county.

0:20:58So whatever we're doing out there I would say keep it up.

0:21:03Hopefully our statistics remain this good relative

0:21:07to the rest of the County and relative

0:21:09to the rest of the country.

0:21:11We are doing our part in flattening the curve in trying

0:21:16to make sure that we don't overwhelm our health care

0:21:20system here in the county as well as here in the state

0:21:23of California and beyond.

0:21:26The county has one thousand one hundred

0:21:30and seventy one hospital beds and they are in the process

0:21:34of acquiring another a little over another thousand

0:21:38hospital beds for a total of twenty two

0:21:41hundred surge capacity.

0:21:43As you may have seen in the paper.

0:21:45Two hundred fifty beds have been set up at the crane way

0:21:49pavilion county officials also wanted to remind us

0:21:54that during this unprecedented situation

0:21:58there is no proven effective medication

0:22:02and there is still no vaccine This

0:22:05is why the County ordered the stay at home order

0:22:08on March 16th.

0:22:10It wanted to remind us to stay home social distance

0:22:14and we will slow the spread Last week

0:22:19there was an update to the order which said that now in addition

0:22:23to those things that we've been talking about before we'd also

0:22:27like everyone when they go outside to please cover

0:22:30their face I think there was a little confusion about this

0:22:33initially because we did want to save in ninety fives.

0:22:38Though the high filter kinds of face mask for health

0:22:43care professionals as there is a shortage nationwide.

0:22:48But studies have shown that in countries where

0:22:50they cover their faces in public they

0:22:53have slowed the transmission.

0:22:55And so we are now asking that everyone goes outside

0:22:59particularly if you're going to be

0:23:02something like at the grocery store or at work

0:23:04that you cover your face.

0:23:07That doesn't mean you need an ninety five.

0:23:09There are made masks that you can find how to make

0:23:14or various things like that sort.

0:23:18Health care officials also discussed

0:23:23that what a common presentation of the virus

0:23:28would look like which I was pretty curious about.

0:23:33About a week from exposure it often takes time for people

0:23:37to develop symptoms.

0:23:38So about a week.

0:23:40That is why covering your face is still important.

0:23:43If you're not showing symptoms because it's during that week

0:23:47period of time where you could be out spreading the virus

0:23:50and then it takes about another week

0:23:52after you're showing symptoms for you

0:23:55to actually require hospitalization

0:23:57If you're going to need hospitalization and then people

0:24:01that require hospitalization may need to remain in the hospital

0:24:05for weeks at a time.

0:24:07So once again that's why it's so important for everyone

0:24:10to Latin the curve and prevent this surge

0:24:15from being out of control.

0:24:17We want to make sure that if you do get sick there will be

0:24:21hospital care available for you at according to health care

0:24:27officials we have not yet hit our surge here in the county

0:24:31or in the state of California.

0:24:33The prediction is that the last part of April

0:24:36or the beginning part of May will be when we hit our peak

0:24:40and so we're just trying to really hang in there

0:24:42and make sure that we keep our hospital

0:24:45resources available for the public Lastly

0:24:50here if you are as senior that or a person

0:24:55with other high risk category at we just want to reiterate

0:25:00please do not go out to find someone

0:25:03to run your errands for you.

0:25:05It's imperative that during this time in particular

0:25:08that you do not get sick.

0:25:11Finally I'll close with if you have

0:25:14in 90 fives or other health care worker items.

0:25:21My sister actually happens to have some bunny suits

0:25:24you know things like that.

0:25:25If you have things you could donate to the hospital that can

0:25:28help help our health care workers at this time

0:25:31You can also find where to donate those at CDC Health

0:25:35dot org and click on corona virus and assembly member Wicks

0:25:39also shared that you can if you have somehow knowledge of how

0:25:44to get a larger amount of supplies

0:25:46to donate coded 19 supplies see a GOP there's

0:25:53a statewide supply donation that they're collecting as well.

0:25:56And with that all in my report.

0:25:57Thank you Yes.

0:26:02Council member Ableton do it this time was would

0:26:07be the comment I received a copy of the newsletter

0:26:11from the Alfredo chamber of commerce

0:26:14and it was listing a list which I'm

0:26:17sure is available on their Web site of all of the places that

0:26:20will deliver food to to a home.

0:26:25So if people are and thinking particularly

0:26:28of seniors and other others who shouldn't be going out

0:26:34or can't get out they can look on that list.

0:26:39You know the Chamber of Commerce for all three of its Web site

0:26:43and see a list of places that will deliver meals Thank you.

0:26:50Great thank you.

0:26:51Council member Quito Thank you Mayor.

0:26:56Good evening everyone.

0:26:58I wanted to report that Clay was on a call with my colleagues

0:27:06of the fundamental policy meeting last Friday

0:27:11and there were about 50 people that attended that meeting

0:27:17and basically what's going on in Sacramento regarding bills

0:27:26is that basically we're going to have very bare bones

0:27:31year dealing with legislation this changes all

0:27:37of the plans that are covered because it

0:27:40said we have to get change.

0:27:45A lot of the bills we were going to put through and many of them

0:27:52will not be put through because of the cost.

0:27:56So there are a few bills that we'll

0:28:01be looking closely at on the environmental side

0:28:06and what I'll do.

0:28:08I will give staff the numbers at the Dells

0:28:14and perhaps we can post that on the city website later.

0:28:19But I wanted to let everyone know

0:28:23I've been getting phone calls and lots of e-mails today.

0:28:28So no I just wanted to let residents in Nelson

0:28:32read them know that I received all your e-mails.

0:28:35And Dan are the folks that called Day received

0:28:38your phone messages as well.

0:28:41And I'm sure my colleagues have had as well so.

0:28:46But again thank you.

0:28:48And I want to just say because of John Joyner Supervisor John

0:28:54joy and our supervisors in Contra Costa great president

0:28:59Candice Anderson we have gotten the word out through social

0:29:03networking and So John thank you again for letting residents

0:29:10of L.A. Reid out when Kensington doe in West County and about

0:29:15everything that is happening hour by hour and appreciate you

0:29:22and Patti Wicks having your town hall over 400 people attended

0:29:27the meeting I attended a caucus meeting this morning which was

0:29:35for about a half hour and basically we are waiting

0:29:42and we're going to see if we will have

0:29:44our meeting in Monterrey in the month of June

0:29:48or if we will do this the

0:29:51WebEx or zoom that's my uptake All right

0:29:56thank you pro tem fidelity.

0:30:00Good evening.

0:30:01First I want to welcome back Janet Ables and Janet.

0:30:04We missed you Welcome back.

0:30:06I was also on a conference call.

0:30:08Yeah.

0:30:09How are you feeling pretty good now.

0:30:12Good.

0:30:13I was on the conference call as well with supervisor Joy

0:30:16and Buffy Wicks and I just wanted to now salute

0:30:20our own first responder Michelle Pardue all came out of all

0:30:23the work that she's done.

0:30:25You know it's kind of a frustrating time for those

0:30:27of us that want to help others and we can't do it

0:30:29and staying at home and we have our council member

0:30:32on the frontlines helping.

0:30:33So again thank you so much.

0:30:35Rochelle We really appreciate that.

0:30:38I also have a policy planning meeting with the League

0:30:41of Cities for transportation and public utilities

0:30:45and the biggest item I pulled from that was that in the state

0:30:49capital the league is fighting to extend

0:30:52the underground utility and the grounding program

0:30:55that PG&E in the PUC implements.

0:30:57There is a sunset clause on that and some legislators are

0:31:02going to try to change that.

0:31:03I connected with city about sending a letter in the amount

0:31:07of time to comment on that program

0:31:09the PUC to make sure that that program stays running

0:31:14And I also want to thank the chamber of commerce for all

0:31:16their help in letting those of us in the City

0:31:18know the small businesses and restaurants that

0:31:21are open for our services Thank you.

0:31:28Great thank you.

0:31:29I want to do a report out from our closed

0:31:31session from March 17th.

0:31:34We may met with our labor negotiators

0:31:37and gave them instructions.

0:31:39Additionally if you haven't completed your census already

0:31:43you probably are getting mail regarding your census

0:31:47so please participate in the census Everyone

0:31:50needs to be counted.

0:31:52Important financial decisions are made based on our count.

0:31:57So please fill out your census that we'll move on

0:32:04to item 3 I am now announcing that Item

0:32:093 is being read This is oral communications from the public.

0:32:15So at this time period for submitting public comments

0:32:18regarding matters on not on the agenda and on the consent item

0:32:22is closed.

0:32:25Will the City Clerk please proceed

0:32:27with announcing who we already got communications from.

0:32:33I don't know if you were planning on doing I have it up

0:32:36if you don't have it up and coming

0:32:40and I mean I can certainly do that.

0:32:43So comments that were received by 12:00 p.m.

0:32:47today were posted on the city's website

0:32:49as supplemental materials and provided directly to the city

0:32:52council members comments for matters not on the agenda

0:32:58and comments consent.

0:32:59Items were received by the following

0:33:01individuals not on the agenda.

0:33:06Marlene George and Nick Marino and those

0:33:10have been again posted online with all of the council

0:33:13meeting materials.

0:33:15Prior to this meeting and at this time

0:33:20I'll proceed with reading the additional comments

0:33:22we have received into the rep record

0:33:24which at this point in time is only two additional comments.

0:33:28So Mayor With your permission I'll

0:33:30just proceed with the three minute

0:33:32time limit per submission.

0:33:35Yeah.

0:33:35Who are the two that you plan to read I'm sorry.

0:33:40Can you repeat that.

0:33:41Yeah.

0:33:42Who are the two comments that you're planning to reviewed.

0:33:46These are new submissions that were not posted online.

0:33:48These were submissions that we have

0:33:50received after the trouble.

0:33:51Yeah.

0:33:52So we thought this in and Miss handle.

0:33:56Is that correct.

0:33:58No I have ace Aisling AC and Nick Zambrano

0:34:06for items not on the agenda.

0:34:09We're holding the comments for it

0:34:12until we discuss the greatest.

0:34:14Thank you.

0:34:15That's correct.

0:34:16Okay.

0:34:16So I will proceed with the first public comments

0:34:18that we have received from alien base

0:34:22with the three minute time starting now.

0:34:26Your council members it saddens me

0:34:28that it has taken so much time for the city leaders

0:34:31to make meaningful changes to our city's budget.

0:34:34I wonder if any changes would have been

0:34:36made at the auditor's report and highlighted

0:34:39our financial issues.

0:34:40An incredible group of dedicated citizens

0:34:43have provided oversight and collected evidence of city

0:34:46mismanagement I am grateful to them

0:34:48but I can't help but think that their talents could have been

0:34:51used towards growing a city not just trying to save it

0:34:54from total insolvency I eagerly await the meaningful cuts that

0:34:58need to happen.

0:34:59As others have mentioned new taxes is not the way forward.

0:35:03That is the old way of doing things

0:35:05and it is no longer acceptable.

0:35:07Thanks for residents generosity.

0:35:09The city spent really well providing residents

0:35:12with general fund services that are average best

0:35:16only our library hours festivals and Senior Services

0:35:19rise above the minimum level of city services

0:35:23the city needs to take and to look inward first

0:35:26before cutting services to residents

0:35:28or raising taxes yet again.

0:35:31Start by rolling back senior management salaries that

0:35:33have grown without regard to the city's broken and disregarded

0:35:37median compensation policy and that in any case

0:35:41the city can not afford to pay eliminate overtime pay for FLSA

0:35:46exempt managers reduce the fire departments

0:35:49and reimbursed overtime over reliance on uniformed personnel

0:35:54for non response activities and top heavy staffing eliminate

0:35:59contracting for all professional services that can be performed

0:36:02by staff reduce the cost of providing senior services

0:36:07while preserving their most important functions

0:36:10and once passed the immediate crisis plan to fully

0:36:13restructure fire safety negotiate sustainable pensions

0:36:18and undertake economic development

0:36:20efforts We need the entire city to know what is going on.

0:36:24Remember all the glossy mailings used for every new tax

0:36:28or for the library bond.

0:36:30You didn't didn't fool around then when you wanted

0:36:32people to know certain things.

0:36:34We need some truth here and some guts.

0:36:37It is time that all council members

0:36:39step up something that our staff does thus

0:36:42seem able or willing to do.

0:36:44Please remember that your choices

0:36:46affect everyone and El Serino.

0:36:48Please remember why you got into public service

0:36:50in the first place and make a positive difference

0:36:54in people's lives.

0:36:55Thank you Aisling Baines and Steven

0:36:58Brian Elsa Rita residents.

0:37:01Thank you.

0:37:04And then the next submission is from Nick Zambrano

0:37:06and I will stop his three minute time now.

0:37:12According to this city manager's update dated one twenty three

0:37:15twenty to also read a full service fire department

0:37:19conducted three thousand six hundred

0:37:21forty three service calls in 2019.

0:37:24December reflected a record year of service calls

0:37:27over a five year period.

0:37:28There has been an 18 percent increase out of these three

0:37:32thousand six hundred and forty recalls one thousand

0:37:35two hundred were for emergency medical services and rescues.

0:37:39This increase is likely to continue in 2020 and 2021

0:37:44or in city practices not to charge

0:37:46residents for these services due bill health insurance plans.

0:37:50Other cities either charge a reasonable rate for EMR

0:37:54s calls and or obtain reimbursement from health

0:37:57insurance plans for example the City of Albany first responder

0:38:01rates are three hundred dollars per hour one hundred

0:38:04four engine and one hundred for each firefighter paramedic

0:38:09the city of Berkeley bills for e M.S.

0:38:11first responders at the alameda approved rate for ambulance

0:38:14services three hundred dollar flat fee both cities implement

0:38:19Direct filling through a third party billing agency Whitman

0:38:22Enterprises LLC and report a seamless process for charging

0:38:26residents and obtaining reimbursement from health

0:38:29insurance providers.

0:38:31In addition to charging for emergency medical bills.

0:38:34Albany and Berkeley contract with Alameda County

0:38:37Emergency Services Agency for ambulance services

0:38:41at the base rate.

0:38:42Two thousand one hundred eighty one dollars which was six

0:38:46point one eight percent increase from 2017.

0:38:50In fiscal year 2018 the ambulance billing revenue

0:38:54collected for Berkeley was four point three four million

0:38:58based on an estimated eight thousand transports per year.

0:39:01The newly fee the increase is projected

0:39:04to increase Berkeley's revenue by approximately

0:39:07seventy five thousand a year.

0:39:09Should also credo choose to do the same.

0:39:11It would be with Contra Costa o l

0:39:14e as a Contra Costa County Board of Directors

0:39:18said the ambulance based rates for 2019

0:39:21at two thousand three hundred twelve dollars

0:39:25Contra Costa County Fire Protection District

0:39:29has established a compassionate care program

0:39:31for residents who don't have health

0:39:33and health insurance plans such as Medicare

0:39:36medical or private insurance.

0:39:39The CCP was established for financial hardships

0:39:42and can discount up to 100 percent of a patient's

0:39:45ambulance service bill.

0:39:47Patients must meet program criteria to be eligible.

0:39:51This is from Nick Zambrano make else read fire.

0:39:56Great thank you.

0:39:56That's one word my name.

0:39:58Okay.

0:39:59That concludes this the comments that we have received

0:40:02at this time on items not on the agenda or items

0:40:06on the consent calendar.

0:40:07Great.

0:40:07Thank you.

0:40:08At this time we'll move on to item for adoption

0:40:11of the consent calendar.

0:40:13I'm going to take us in minor chunks

0:40:17because I would like to at least read off the titles of these

0:40:20and I don't feel like reading them all off in one

0:40:24go What I'd like to do is take up item for A

0:40:30for just the approval of the minute meeting

0:40:32minutes from January and February

0:40:35that council member able some did not attend.

0:40:38So if I could have a motion to approve the minutes for January

0:40:4121st February 1st February 4th and February 18th summit

0:40:47Okamoto can cancel members as a reminder please

0:40:56make sure you meet yourself before you

0:40:58speak so to ensure that your heard

0:41:02not can you hear my motion.

0:41:04Yes the motion by Purdue Okamoto seconded by FDLE.

0:41:08All those in favor please say I have five

0:41:11state and state recording or abstention

0:41:14from council member Ableton.

0:41:16Let me.

0:41:18Yes sorry.

0:41:19And we have to do rock roll call vote for every side.

0:41:22All right.

0:41:25OK how about as many as I can This

0:41:29is the motion for the January and February council meetings

0:41:35And I'll do a roll call vote for that.

0:41:36Now Mayor LYMAN Yes mayor.

0:41:39Pretend FDLE high and some member Abel sin.

0:41:45I abstain from the minutes of January 21st.

0:41:50February 4 Savoy fourth.

0:41:51In February Council member Bill council

0:41:57member party youth committed.

0:42:01I and team member Quito and team member Quito and some member

0:42:20kick you make sure that you're you take yourself off of mutes

0:42:32Are you there.

0:42:41I think you're back I'm tense member Quito Are you there.

0:42:44Yeah sorry about that.

0:42:46Thank you and how do you vote.

0:42:50I vote yes in sir said the motion carries 4 0.

0:42:58Excellent.

0:42:58So now we're able to then abstain.

0:43:01Now I'm going to read some additional items so a content

0:43:09calendar item A for March 13 and March 17th.

0:43:14We also have item for B which is National

0:43:18Library Week Proclamation or C which

0:43:21is Earth Day proclamation.

0:43:23And there does recognize that Earth Day April 18th has been

0:43:29cancelled and also Rito Item four d proclamation recognized

0:43:35marches American Red Cross Montaigne

0:43:38or E Education and Sharing Day proclamation for April 12.

0:43:45And that would be online sharing justice sharing

0:43:50for EFF Environmental Quality Committee work plan

0:43:53that was excellent presentation by our environmental quality

0:43:59committee.

0:43:59That's the big red ball count for G

0:44:02is Contra Costa County Library Commission.

0:44:05Update again our commissioner Michael Fisher

0:44:09did a wonderful job summarizing information

0:44:11about the library system item for H

0:44:15on prevention committee appointment.

0:44:16Item 4 I. Committee on Aging appointment.

0:44:21Item 4 J is the support of a bus only lane on the Bay Bridge.

0:44:27Which is at the request of Mayor pretend

0:44:30to delegate its adopted resolution supporting

0:44:33a bus only lane or K is letters of support of SB 5 4 by Allen

0:44:41and a B 10 80 by Gonzalez and these.

0:44:47This is a resolution that authorizes me to send letters

0:44:52in support of these reducing the amount of single use plastic

0:44:56packaging products that enter our waste

0:44:58stream item for L which is letters

0:45:04in support of solid waste.

0:45:05Emergency funding proposals around the state.

0:45:09This is an essential service.

0:45:11However the changes in our economy

0:45:14have taken a toll on this vital industry item for em.

0:45:21Parking restrictions on Elm Street south

0:45:24of the eighteen hundred Elm Street driveway and item four

0:45:29and which is consulting services agreements

0:45:31for on call construction management.

0:45:35Item and I'm going to stop there so its items for a through 4

0:45:43and where for a has been modified

0:45:45to be just the March 13 and March 17 meetings get in

0:45:51motion.

0:45:53I move to move that SECOND SECOND MAN Move move by Quito

0:46:02and seconded by Purdue Okamoto.

0:46:05Roll call please.

0:46:08May or may.

0:46:10Yes.

0:46:11May I attempt to delete my council member Abelson.

0:46:19Council member Peggy Okamoto.

0:46:21I I council member Quito I motion carries a thank you.

0:46:31I'm now going to introduce and ask for a motion on Item 4

0:46:380 which is authorized the annual report

0:46:40for landscape and lighting assessment district.

0:46:42And item for Q which is the annual parcel

0:46:46assessment for the National Pollution

0:46:48Discharge Elimination System.

0:46:50Both these matters are associated with our budgeting.

0:46:56These are items that come up every year.

0:46:59And for those that have been tracking council

0:47:01you know every year I have the second comment

0:47:04on these two items.

0:47:06Neither one of these funding measures

0:47:09actually covers the full cost of performing the landscape

0:47:13and lighting assessment or providing

0:47:15clean water protections associated

0:47:17with our stormwater runoff.

0:47:20However these are at the maximum amount that is allowed

0:47:25by various enacting ordinances.

0:47:30Put these these two funding measures in place

0:47:33with that I would say there there's no other comments I

0:47:36would love to get a motion for.

0:47:38Oh and for q q mean this uncommitted cannot be moved

0:47:47by Purdue Okamoto seconded by Emerson we

0:47:50will now take roll your name.

0:47:56Yes.

0:47:57Pretend finale.

0:48:00What about yes.

0:48:01But I have a question as well and my hand up my knee

0:48:07would precede with the question first before the vote.

0:48:12Yes go ahead Mr. Stein It's time for Q I was doing it talks

0:48:17about not covering the cost I was doing what the cost

0:48:20differential was where the storm water how much more does it

0:48:25will it cost you provide the actual cost

0:48:30doesn't any staff know that you had to see major pinkos

0:48:34This is made of sorties with us tonight.

0:48:37Yes sir.

0:48:40This is it that these the city's public works director

0:48:44the approximate cost of providing

0:48:46clean water related activities is five hundred

0:48:49and fifty thousand dollars.

0:48:51And forget about three hundred thirty thousand

0:48:54dollars per year.

0:48:56So General Fund supports about two hundred thousand

0:48:59in additional clean water duties to our general fund

0:49:03pending the general fund pays two hundred thousand for that

0:49:07every year You know how much more than thirty eight dollars

0:49:15a year it would cost each resident

0:49:19No I have not made that calculation

0:49:21but I can provide it.

0:49:23OK Thank you.

0:49:27And as long as we've established that differential

0:49:30I believe and I'm not sure who is going

0:49:32to answer the landscape lighting assessment

0:49:34but I believe it's about four hundred thousand

0:49:35dollars from General fund for landscape

0:49:37building and assessment.

0:49:39Well I just looked at those.

0:49:43This is a backward thesis city's public works

0:49:45director on it's closer to six hundred thousand now.

0:49:49Well cost down about one point for a million dollars

0:49:54and we received just under eight hundred thousand dollars

0:49:57light lighting in next this is thank you.

0:50:03We have a motion on the floor from Part 2

0:50:05of Moto seconded by Ableton we're in the middle of the vote

0:50:08count please proceed.

0:50:11So we have a yes from there likely you pretend finale.

0:50:15I can't remember Wilson.

0:50:19All right council member can do it.

0:50:22Okey doke.

0:50:27I can't member can go.

0:50:31I know she carries great great at this time.

0:50:35Can you bring up Holly.

0:50:37Can you bring up the supplemental materials

0:50:40specifically the red longing of light.

0:50:45Which was page thirty five I think

0:50:48your supplemental materials that were sent out.

0:50:55Right.

0:50:56Thank you.

0:50:57So item four P is a construction contract to award for Carlson

0:51:02boulevard in central avenue.

0:51:03Pavement rehabilitation The construction contract.

0:51:08I know the construction contract won't necessarily

0:51:11start during our current targeted ending of our health

0:51:16ordinance our health order.

0:51:18However I felt it was important that we recognized

0:51:22that this contract is essential and therefore

0:51:25the reason we're awarding it is that if if the order is

0:51:29extended we still might start this work before the order is

0:51:35lifted and in order to do that I wanted to make sure that we had

0:51:39clear guidance that this was an essential project

0:51:44in keeping with the health order that was issued last week.

0:51:48The supplemental materials does include language

0:51:52from staff that implements that request of mine so at this time

0:51:59if there's any questions on this matter I don't have a question

0:52:03that I do want to comment.

0:52:06Go ahead.

0:52:07OK.

0:52:08Is Janet able to the FDA advisory committee

0:52:13has made a number of comments about the area being covered

0:52:18by this which is central What is central

0:52:25and San Pablo not comfortable San Diego

0:52:33and could also Carlson in that area and there

0:52:38and there have been accidents involving people in wheelchairs

0:52:45get injured I believe.

0:52:47I remember correctly.

0:52:49So there's been a lot of accidents

0:52:55that occurred there that would not have occurred

0:52:58had this work.

0:52:58And then if this is the work I'm thinking this is that correct

0:53:04that anyway that's what what I remember

0:53:14people describing so that's the point of of your comment.

0:53:21Excellent.

0:53:21Thank you.

0:53:22Charles I I appreciate that.

0:53:27With that I would like to have a motion for the amended item 44

0:53:34P. construction contract word for Carlson and the Central

0:53:38Avenue patent building rehabilitation project Can

0:53:43I confirm that Mr. Kent's ever finale did not have a question.

0:53:47His gun is still raised.

0:53:48Oh sorry I didn't I can't undo that.

0:53:52No I have no question about this either.

0:53:56Okay.

0:53:57It looks like hours and even 30s some comments

0:54:01to make or so before before that you come on I wanted to let

0:54:07Holly know I am unable to see this being raised

0:54:10so you will need to talk to me.

0:54:13Thank you.

0:54:14And if you have the participant channel exposed

0:54:18you should be able to see the hand function

0:54:20but I can certainly let you know when

0:54:21someone does raise their hands.

0:54:25I just wanted to confirm the limits of the project

0:54:29on this project is on Carlson on the central to the Nazis

0:54:35limits.

0:54:36Does it include the San Diego intersection.

0:54:38That is another project that's in our capital

0:54:41improvement program Oh okay.

0:54:51Could I get one of the council members to raise their hand.

0:54:54I just want to do technology check here.

0:55:00Council member Peggy locomotive and council member for L.A.

0:55:03have raised their hands.

0:55:05No unfortunately Holly I am not able to see even with my panel

0:55:09open and very clearly I can see My hand

0:55:13is but I am unable to see their hands so I

0:55:15apologize for that technology.

0:55:18Thank goodness to play interrupted that you know

0:55:21when someone is their hand.

0:55:22Which council member came to know who raised you again.

0:55:26GREAT OF ME.

0:55:27I'D LIKE TO MOVE THAT.

0:55:28GREAT.

0:55:29WE HAVE.

0:55:30I believe I heard Purdue Okamoto also

0:55:32say that she wanted to move it.

0:55:34We've got at least a motion by Kato

0:55:37and second by Purdue Okamoto Is that acceptable to everyone.

0:55:41Yes I can't remember fidelity.

0:55:44Oh I think it's fine.

0:55:50I'm so happy I keep Kato and seconded by FDLE

0:55:54and we'll have a roll call now near lining Yes ma'am.

0:56:00Pretend finale.

0:56:02I can some member think.

0:56:05Yes.

0:56:06Ken's a member party Okamoto Yes.

0:56:10I can't remember Quito.

0:56:12I Captain right.

0:56:16Thank you.

0:56:17That concludes item for item 5 presentations.

0:56:21We have no presentations this evening.

0:56:23Item 6 is public hearings We have

0:56:26no public hearings tonight.

0:56:27Item 7 policy matters 7 A is the general fund

0:56:33but hit reductions update in fiscal impacts of COBRA 19.

0:56:39We're going to conduct a study session

0:56:41and receive an update on the city's general fund budget

0:56:43reduction And provide staff with direction

0:56:46on further budget reductions.

0:56:49The period for submitting public comments on this item

0:56:53is now closed comments will be heard before council

0:56:57takes action at this time.

0:57:00I would like to request a staff report Thank you Your Honor

0:57:11City Manager Karen get everyone here.

0:57:14All right.

0:57:16The agenda follows a series of city capital actions

0:57:21and public meetings over the past several months

0:57:23at the city's budget position.

0:57:26In light of the results of the fiscal year

0:57:281990 audit and the review initiated by the California

0:57:32state auditor as you know the city

0:57:34council and city staff also initiated

0:57:36a strategic planning process.

0:57:38Engaging the consulting firm management partners.

0:57:41This is informed and informing the Council

0:57:44on the priorities of AP For the upcoming fiscal year.

0:57:47Twenty one and twenty two.

0:57:50Ideal budget process.

0:57:52The intention was to hold a strategic planning workshop

0:57:55with the city council on March 14th

0:57:57in order to discuss the results of the community feedback.

0:58:00Review the priorities and provide direction

0:58:02on strategic goals that would then be used

0:58:04to develop the biennial budget.

0:58:07The council was also set to review the City Council's

0:58:09budget at the March 17th city council meeting

0:58:11and receive proposed budget cuts in response.

0:58:14The city council's request for a 5 percent reduction on April 7

0:58:19which is tonight.

0:58:21Since that time however as you all know the code nineteen

0:58:24coronavirus pandemic has resulted in a public health

0:58:27crisis that has interfered with the planned course of business

0:58:30tremendously as you know on March 13th the city council

0:58:34declared a local emergency in an emergency meeting that resulted

0:58:38in the closure of all city facilities to the public

0:58:41and canceled all public meetings events programs and classes

0:58:44including the planned meetings I spoke of on March 14th and 17

0:58:50pursuant to the local emergency as well as the county shelter

0:58:53in place order the facilities are now closed through May 1st

0:58:582020 and events and non-essential meetings

0:59:02are canceled through May 30 first the county

0:59:05order has also closed

0:59:06non-essential businesses and required residents

0:59:08to stay home only unless absolutely necessary.

0:59:12In El Sarita the immediate impact as far as our budget

0:59:16is concerned of this health crisis

0:59:19are revenue losses due to decreased sales taxes

0:59:22real property transfer tax and from the cancellation

0:59:25of recreation programs and classes.

0:59:27We will go over this in detail shortly.

0:59:31What this means though is that our previous strategic goals

0:59:35budget adjustments projections and even

0:59:40reductions must again in unprecedented

0:59:43economic downturn.

0:59:46City staff has been in consultation

0:59:47with management partners and our other financial consultants

0:59:50over the past few weeks to discuss recommendations

0:59:53and priorities in light of the new budget reality

0:59:56that cities are faced with because of it.

0:59:5919 public health crisis management partners tonight

1:00:02will provide the city council with an update

1:00:04on the information gathered in the strategic planning process

1:00:08and outline their recommendations

1:00:09for the financial priorities for the upcoming biennial budget.

1:00:13With that I would actually like to introduce Nancy Patrick you

1:00:16know from our partners and Steve Toller who is also

1:00:20of management partners and they will begin

1:00:22the presentation tonight at this time

1:00:25I'd like to turn it over to Nancy.

1:00:28OK.

1:00:28I think Karen Can anybody hear me OK.

1:00:34We'll say that just a mayor members of council.

1:00:37Thank you.

1:00:37I wish we were here under rider circumstances

1:00:40as Karen mentioned we were scheduled

1:00:42in March to convene for a workshop on the strategic plan.

1:00:47A lot of work has gone in that process.

1:00:49There was activity we from community members

1:00:53through a variety of sources but as we know the world

1:00:57has changed.

1:00:58So we are going to be spending some time the majority

1:01:01of our time focused on what we seem to be seen

1:01:04to be as the top priority for the city

1:01:07for the foreseeable future.

1:01:09That coming next year up to two years I will go through

1:01:12and actually Steve's going to take me

1:01:14quickly through the slides and quick

1:01:16overview of our presentation.

1:01:18I'm going to take you through just a quick overview.

1:01:21I think it's important to share with you what

1:01:24we heard from your community through a variety

1:01:27of different activities.

1:01:29It was quite clear through our conversations

1:01:32through focus groups through surveys interviews that

1:01:36even prior to the CO bid pandemic situation that we're

1:01:40all living with today your community council members

1:01:44and staff are all well aware of the financial situation with

1:01:48the city the city was facing.

1:01:50So we'll go through those results

1:01:53and share those and go rather quickly will pause.

1:01:55Once we get through that in case there are any questions

1:01:59but then we really want to shift gears and focus

1:02:01on the fiscal impacts of October 19

1:02:05we will reflect first on the current state of the budget

1:02:09and the actions that the city has already taken and is

1:02:11undertaking which are of note and important

1:02:15but then also provide you with some of the insights

1:02:19we've been able to glean through some modeling fiscal modeling

1:02:22related to the cover 19.

1:02:24So Steve will take us through the financial components

1:02:27of our presentation and again what

1:02:28we'll pause periodically for your comments and questions.

1:02:32And we have a lot of material to get through but we want

1:02:35to make sure that there is opportunity

1:02:36for engagement and dialogue and to make sure it

1:02:39is hearing the same message.

1:02:42Next we're going to talk about those top priorities

1:02:45for the coming year as you're contemplating a budget

1:02:49for the next fiscal year.

1:02:51In light of all of the uncertainty

1:02:52and unknowns that we're facing we'll

1:02:54talk about those priorities and then the next steps

1:02:58after we get through this period.

1:03:01If you will we will be revisiting the balance

1:03:04of the strategic plan.

1:03:05We're just spotlighting and focusing

1:03:07on the financial priority.

1:03:09The goal really to secure the long term financial health

1:03:12and sustainability of the city.

1:03:15The remainder of the goals are highlighting the themes

1:03:17that I present will be captured in the strategic plan

1:03:20for a longer horizon.

1:03:21Looking forward that's the presentation overview I again

1:03:25I'm going to go through quickly just kind

1:03:27of what we heard in an update on the strategic planning process

1:03:31because there was a lot of time energy

1:03:32that was expended on this work and we want to we were

1:03:35grateful for the participation and the input

1:03:37that we received so quickly an overview of the process

1:03:41and the activities that we've pursued as council will recall

1:03:46we had an opportunity to meet and one on one interviews

1:03:49to discuss the the strategic plan strengths

1:03:53challenges opportunities threats looking to the next three

1:03:56to five year horizon.

1:03:58Again this was earlier this year in January

1:04:00so this predates all of the CO bid and knowledge

1:04:04that we have now.

1:04:06So we we met in in January.

1:04:08We also asked Department heads and their teams to respond

1:04:11to a questionnaire that solicited input

1:04:15similar to our interviews asking about strengths challenges

1:04:18approaches and threats but also the key priorities and projects

1:04:22that they have underway.

1:04:24And on the horizon and our need.

1:04:26So we were able to capture that input early on as well.

1:04:31We also facilitated four stakeholder

1:04:33focus groups the focus the focus groups were comprised.

1:04:38The first one a group of your 14 commissioners.

1:04:41Secondarily we had a focus group with this

1:04:44is representatives from the Chamber and other community

1:04:48business leaders.

1:04:50We also had a focus group with community representative so

1:04:53community members that represented

1:04:55broader organizations or groups to represent their voices.

1:05:00And then we also had one with a diverse cross-section of staff

1:05:04so all levels of the organization and

1:05:06all departments represented.

1:05:09So we heard we heard from the start of the call groups

1:05:12and we also supported the city with a Online Community Survey.

1:05:18This was posted to the city's website and encouraged input.

1:05:23Residents were encouraged to respond online.

1:05:26In addition the city held an open house at which point

1:05:29we made it.

1:05:30Community members could provide additional input

1:05:32and respond to the survey.

1:05:33There were three hundred and eighty one responses

1:05:35to that online survey which were supplemental to the themes

1:05:39that we had captured through other avenues.

1:05:42In addition to the online survey there

1:05:45was a National Citizen's survey that was conducted

1:05:47last year by the city.

1:05:50We were given the results of that survey as well

1:05:53and really the themes that emerge became thematic.

1:05:57I'm going to go through those in a moment and consistent.

1:06:00There weren't a whole lot of outliers in the broad themes

1:06:03that we heard.

1:06:04The last item on this process overview

1:06:06is called an environmental scan.

1:06:07You may recall from the last time we did the strategic plan.

1:06:10This is really to provide some context

1:06:13and use some data that profiles city demographic trends.

1:06:18Other notable influences on on the city's

1:06:23decisions for setting goals at Empire going forward.

1:06:27We are going to be giving us a quick snapshot

1:06:29of the environmental scan we're not sure that the whole of it

1:06:32tonight.

1:06:32Aside from the fiscal component which we did a significantly

1:06:37deeper dive this round and that's

1:06:40when we brought in Steve Toller whose background

1:06:42is in public finance.

1:06:44He's got years of experience and he's

1:06:47going to take us through that.

1:06:48That section of our presentation this evening.

1:06:52But part of our assignment given the auditor's report

1:06:56and the knowledge of the city's finances

1:06:59we took a deeper dive a fresh set of eyes to the finances

1:07:02that's environmental I'm going to quickly walk

1:07:05through the notable themes from the outreach

1:07:09and then I'll pause after that.

1:07:10Again this is just to give you a sense of what we heard

1:07:13so we asked about strengths challenges

1:07:15opportunities and threats.

1:07:16When asked about strengths some of the things that stood out

1:07:20and these are not going to be surprising to location

1:07:23was something that people see as a strength including access

1:07:27to the two BART stations safe and clean the diversity

1:07:31people value that and see that as a strength

1:07:33of your community.

1:07:34They also recognized the access the accessible nature

1:07:38of both staff and policymakers and that they

1:07:42had an appreciation for the connectedness that exists there

1:07:46lots of appreciation and strength

1:07:47for them in the recreation programs parks

1:07:49and open space for valued and also

1:07:52the commitment to the environment and sustainability.

1:07:54And we heard a lot about you know what is some strength

1:07:56and something that you value and the recycling

1:07:59center came up repeatedly.

1:08:01The challenges that we heard and we're

1:08:04going to explore some of these a little bit deeper this evening.

1:08:07First off that there are very high levels of expectation

1:08:11for service delivery in the community

1:08:12and we heard this from all sectors

1:08:16But there's a really high level of expectation on service

1:08:19on services provided.

1:08:21And maybe this is in part a reflection of the accessibility

1:08:24and the sense of responsiveness but there's also

1:08:27and this is the one we underscore underscoring bowl

1:08:29and bold a clear recognition that there's

1:08:32a significant challenge with the budget and staffing limitations

1:08:37within the city also lack of infrastructure funding

1:08:40and planning was mentioned safety at the BART stations

1:08:43was identified as a concern.

1:08:45Succession planning as you're losing people for whatever

1:08:48reason making sure that there are the there's

1:08:51the ability for knowledge transfer and holding onto that

1:08:54and that there's not a lot of economy

1:08:55of scale in a small city like the city of Syria.

1:08:59The opportunities that we heard about our little brighter spot.

1:09:04The engagement today along lines of the budget

1:09:06there was an appreciation for the the new spirit

1:09:10of engagement that was being presented to the community

1:09:14as simultaneously a strategic planning

1:09:17effort for hosting a series of budget workshops and budget.

1:09:21Sessions and really engaging in conversation with the public

1:09:24and I think that's part of why we've

1:09:26heard a clear understanding and appreciation for the situation

1:09:31with the city.

1:09:32Also opportunity a lot of comments economic development

1:09:36certainly along San Pablo Avenue understanding and seeing

1:09:39the development activity that is there and as envisioned

1:09:42was seen as an opportunity along the link to that

1:09:46but also separate is revenue generation

1:09:49might want to explore that further down the road

1:09:53re-establishing reserves.

1:09:54This is another tangent to the financial realities.

1:09:57So the opportunity to really invest and make

1:09:59sure that you have adequate reserves or safe some kind

1:10:03of an emergency to emerge identifying

1:10:07efficiencies utilizing technology

1:10:09and also transit oriented development.

1:10:11Also seen as an opportunity last set of themes I'll highlight

1:10:15relate to threats.

1:10:17These are generally external in nature but are

1:10:19things to be mindful of.

1:10:22The first one which again I would bolt and underscore

1:10:24for today is an economic downturn a recession which we

1:10:28will be exploring further climate

1:10:30change natural disasters pandemics we're not

1:10:33among the list of items considered as a threat

1:10:35but now we know that they also are the development outpaces

1:10:39capacity loss of employees and that kind of ties

1:10:43back to the need for succession planning

1:10:46and then a threat could also be a loss of trust on the public.

1:10:49So things to kind of keep in mind the sightline

1:10:52of council going forward.

1:10:54So those are the themes and the threats

1:10:56are the strengths challenges opportunities and threats.

1:11:00The next slide summarizes some takeaways from the committee

1:11:03surveys and focus groups And so as

1:11:06I mentioned there was an online open gap

1:11:09survey that was made available to all residents to respond to.

1:11:14In addition the city administered

1:11:17the national community survey 90 like it last year in 2019.

1:11:21The summary results of those highlight the fact

1:11:24that also Rito is perceived as a very desirable place to live.

1:11:27Nine in 10 residents recommend let me Sarita.

1:11:29So there is a lot of pride in the community this is not

1:11:32a big surprise to us but always nice to see

1:11:35validated the natural environment is

1:11:37a community asset.

1:11:38We heard that in focus groups as well as these surveys.

1:11:42As I mentioned the recycling center

1:11:43and an appreciation for environmental activism

1:11:48is valued here.

1:11:50The economy is an area of opportunity

1:11:52for all Serino and residents value safety and really

1:11:55emphasize its importance and so for public safety

1:11:58aside from at the BART stations there is there's not

1:12:02a big threat or concern but certainly a priority

1:12:07placed on public safety and in the community.

1:12:10And so that was where things we heard in this survey.

1:12:14We asked respondents to rank a whole series

1:12:17of potential priorities next time Steve.

1:12:22And so in doing so we were able to identify what they're

1:12:27where there is consensus.

1:12:28The first and top priority ironically

1:12:32was schools and education.

1:12:34Well we understand that the city of El Serino

1:12:36doesn't deliver education or directly service educate

1:12:41the school environment but it's important to understand

1:12:44that that's something that is certainly of value

1:12:46and appreciated in the city of El Cerrito

1:12:50if you step kind of step to the next level and set that aside.

1:12:54The top priority was longer term financial health of the city.

1:12:57And this really I think illustrates the fact

1:13:00that your community recognizes the need to spotlight and pay

1:13:04attention to this in the proposed goals

1:13:07we would have reviewed on March 14th this was

1:13:10going to be the top priority.

1:13:12I believe that stands with even a brighter spotlight today

1:13:16with coverage as you will see as through the presentation

1:13:19this evening.

1:13:20The other top priorities in order of priority

1:13:22are public safety emergency preparedness

1:13:26and economic development All of these

1:13:29were consistent with focus groups and other the things

1:13:33that other engagement activities that we've performed.

1:13:36So those are the top priorities I might pause there just

1:13:39for any quick reaction then I want

1:13:41to just do two quick slides that relate

1:13:44to the environmental scan before I hand it off to Steve

1:13:49any questions for council members

1:13:53A good based I think that was raised.

1:14:00I think that was always saying Miller raised hands.

1:14:02Okay.

1:14:04And Bambi okay.

1:14:08So this this slide takes a number of content

1:14:12slides that we had incorporated into our environmental scan

1:14:15to really paint a picture on that

1:14:18the general demographic environment the profile

1:14:20if you will of the city of El Cerrito.

1:14:22I think it's important when considering

1:14:25other factors that we're going to look at this evening.

1:14:28So starting to the left populate Shin growth

1:14:32you can see also Rita there is the green line to the bottom

1:14:36Contra Costa County by comparison is there to the top

1:14:41And so yeah there's there's a steady growth.

1:14:43This is a small city and if you look at it the percentage

1:14:46on the y axis over there you can see those are not large numbers

1:14:49so this is a relatively static number just below that you

1:14:54can see the age distribution.

1:14:56And what we can see in the trend is that the population is

1:15:02slow growing and as aging And so there are those older

1:15:06population in your city and that's

1:15:08something to be mindful of as we are exploring covered

1:15:13and other requirements of the Today middle column

1:15:18looks at hiring and education levels and income and education

1:15:23levels and so the top of that looks

1:15:26at the median household income.

1:15:28Also Rita is in red.

1:15:29And so that's the right hand column or the right hand

1:15:32bar for each of those things.

1:15:35Each of those charts.

1:15:36So that also Rita has a higher household income

1:15:40than either Contra Costa County in the middle

1:15:43or the state average in the middle

1:15:46you can see that the bottom the next two charts

1:15:50indicate that El Salvador has a highly educated community

1:15:53as well particularly in comparison to the county

1:15:55and state wide averages.

1:15:56So let's said bachelor's degrees and high high school diplomas.

1:16:00And This is not a surprise you may know that there are

1:16:04a lot of residents that are affiliated with it

1:16:07and working in education and there's a high degree

1:16:11of education and knowledge which is

1:16:13a great asset or the community in problem solving.

1:16:17So over to the right the last profile component

1:16:19I'd like to present is the homeownership and rental rates

1:16:23and so the top looks at the percent of the community

1:16:27also rental being at the top that own their home.

1:16:30So owner occupied versus renter when compared to Contra Costa

1:16:35County there's a slightly higher level

1:16:37of renters than owners in compared to contrast to county.

1:16:42This was a little bit of a surprise

1:16:44and I think that as you look to the future

1:16:46and develop along San Pablo Avenue

1:16:48there's the potential for this percentage to become even

1:16:51higher but that that is know time

1:16:53will tell if you compare that to Alameda County.

1:16:56There's actually slightly fewer renters and more home owners.

1:17:00The two charts at the bottom of that side of that

1:17:04the right hand side present the median home income home

1:17:09value and the monthly rent.

1:17:11And so the home value is right in between the average

1:17:15of Contra Costa County Alameda County.

1:17:17That's not terribly surprising there

1:17:20but the next one the median monthly rent

1:17:23you can see that El Serino when compared to Alameda

1:17:26which is just to your north is significantly more affordable

1:17:31much more in line with Contra Costa County

1:17:33and actually slightly lower.

1:17:35So that's interesting a little note.

1:17:38And then the last slide that I'd like to present

1:17:40are the top employers and this is important for today

1:17:45as we said.

1:17:46Sorry.

1:17:47Yes.

1:17:48On that previous slide.

1:17:50Yeah the the flip side of looking

1:17:53at that monthly median monthly rent

1:17:56is that projects in LS Fredo don't pencil interesting.

1:18:04OK.

1:18:04So yes it's affordable but at the same time

1:18:07it is it does not support development projects Thank you.

1:18:13Thank you Steve.

1:18:14So it becomes a barrier potentially for bringing us

1:18:16and that's an interesting observation.

1:18:18Thank you for that The other questions This is my slide

1:18:26that the next line is.

1:18:27And lastly I have no can have some conversation.

1:18:31So these are the top employers this comes

1:18:32from your Kafr notably you can see the top two

1:18:36employers Barnes Noble and Bed Bath and Beyond

1:18:38are going to be significantly hit by the downturn

1:18:42that we're experienced and loss of sales tax.

1:18:45However if you look at the the group of top end players

1:18:47overall you'll see that a number of them CBS Home Depot Lucky's

1:18:51Safeway Trader Joe's These are employers that actually

1:18:57are considered essential.

1:18:58And so they are still open they should still be open

1:19:02and that that's that's a good thing.

1:19:05So we want to just kind of give you

1:19:06a glance at those top employers it gives you a sense of the mix

1:19:09of businesses as well.

1:19:12So that's the list of employers All right.

1:19:15So that conclude sort of the high level overview if you will

1:19:19we were gonna go into a much deeper dive initially on March

1:19:2214th but we really want to take and use your time

1:19:25this evening to focus on the financial environmental scan

1:19:29of today and then forecasting what

1:19:31we are anticipating looking into the next few years.

1:19:35So I'll have to ask if there are any questions

1:19:39And if not then I will turn it back to Steve

1:19:46I believe Steve can proceed.

1:19:48All right Dave you can proceed.

1:19:51Great.

1:19:52Thank you.

1:19:52Making sure everybody can hear me.

1:19:54Just give me a thumbs up real real from the very go go.

1:19:59All right well thank you.

1:20:01Thank you Mr. Mayor and members of the Council

1:20:03for the opportunity to share with you our perspectives

1:20:07on what the city's current fiscal situation of going

1:20:10to cover that area here up front and that we're going to start

1:20:13talking a little bit about ultimately

1:20:16not only what the forecast shows but then also what

1:20:20the future holds in terms of this covered nineteen pandemic

1:20:24that we're all going right now.

1:20:26So this is the part is to talk about what

1:20:30your current fiscal situation is recovered 19.

1:20:35And as you will likely recall from the capper

1:20:37that a recently complete completed

1:20:39new had an opportunity to take a look

1:20:42about at a council meeting within the last couple

1:20:45of months.

1:20:46The city did finish with an operating deficit

1:20:49and its general fund of about eight hundred

1:20:51and fifty thousand dollars for fiscal 18 19

1:20:55the year that had completed back in June 2019

1:21:01and that was another year in which the city had experienced

1:21:06a gap a time when expenditures and transfers to other funds

1:21:14exceeded revenues but were and transfers in resources to help

1:21:20fund general fund operations.

1:21:22And this slide shows that historical trend with these

1:21:26blue columns are basically what the actual ending the reserve

1:21:30balance was as we started back in 2008 09 and then finishing

1:21:36in 2018 19 Over the years the city has drawn down its

1:21:41reserves more it's expended more than what it has

1:21:46taken in at its general fund.

1:21:48This solid blue line that you see here

1:21:52is your is the reserve goal which

1:21:54is 10 percent of annual operating tours

1:21:57which is lower than what the typical recommendation is

1:22:02by the Government Finance Officers Association

1:22:04a two month or 17 percent of annual operating expenditures

1:22:09in the general fund.

1:22:10So over time the agency has drawn down its general fund

1:22:15reserves and 2018 19 as you are well aware you finished

1:22:20with reserves that we're actually below zero as as you

1:22:25may be aware that you know two or three quarters of what

1:22:29the general fund operations spend its money on

1:22:33or people to provide those services

1:22:35and so 76 percent of your general fund expenditures

1:22:39go towards salaries and the benefits that are required

1:22:43for all of your employees that provide

1:22:46those services and 24 percent.

1:22:49In other words one quarter of the general fund

1:22:52pays for equipment and supplies that service tech services

1:22:57and professional services that are required to assist

1:22:59in its in its operations.

1:23:03One of the challenges of course over time

1:23:05is that with three quarters of your general fund

1:23:08being expended towards people that provide the services.

1:23:12Is that again recovered 19.

1:23:14We have this amazing employment market that we had

1:23:19and it was difficult to recruit and retain employees.

1:23:22And so maintaining competitive benefit to something

1:23:24that was really critical for the city

1:23:27even in light of the fiscal challenges that may make this.

1:23:32But that's just going to be a continued pressure

1:23:35in the future when we get through this crisis

1:23:38that we're currently living in right now.

1:23:41Your revenues on the other side of the coin you know almost two

1:23:46thirds of your general fund is funded through the various tax

1:23:50revenues that come out and we've exploded that piece of the chop

1:23:53pie so that you can see kind of how that is comprised

1:23:57so property taxes make up about a quarter

1:23:59of your of your general fund revenues

1:24:03on sales tax 18 percent utility tax 9 percent etc..

1:24:08And then the other items outside of taxes are moneys that you

1:24:12get from either the license fees other intergovernmental

1:24:17revenues that come in your general or your charges

1:24:21for services building permit planning permits any recreation

1:24:26programs that you'd have etc..

1:24:28I mean those are what.

1:24:29What are compressing your your general fund

1:24:32reserves or revenues.

1:24:34Well that brings up a concept about general revenue

1:24:39in general fund revenue diversification

1:24:42and typically what we see is that when there are cities that

1:24:44have less than 65 percent of their revenue

1:24:47general fund revenues one there's less than 65 percent

1:24:53or more in stable revenue source They're typically

1:24:57less able to withstand economic downturns

1:24:59or what that means is that if you start seeing areas

1:25:03such as sales tax real property transfer tax

1:25:06which are subject to the ebbs and flows of the real estate

1:25:09market you charges for services especially Development Services

1:25:13Development fees and other licenses

1:25:16and permits when those get to be a larger part of the pie.

1:25:21You end up really swinging with the economy a lot more.

1:25:26And so during the good times it's great.

1:25:29And during the downtime it really

1:25:31starts to have an impact.

1:25:33You know your current level is about 60 percent

1:25:36of the stable revenue sources and 40 percent

1:25:39of volatile Robbins authors which

1:25:41puts the general fund a little more of a risk in terms

1:25:44of the downtime you live at.

1:25:46You do well on the upside.

1:25:47But on the downside it really can have a dramatic impact.

1:25:52Well I think it's just providing context.

1:25:55Yes.

1:25:56Yeah you can go back to that slide.

1:26:00So we have very little control over most of the stable revenue

1:26:07I slices it looks like it Can you speak to which you know

1:26:12our ability to adjust some of the the

1:26:16what you're calling stable revenues.

1:26:21Yeah.

1:26:21Good good question.

1:26:22Thank you for that As you know property taxes

1:26:26you know really flat.

1:26:27Bye by the state constitution and Prop 13

1:26:31until there's very little that the city can do in terms

1:26:33of sweetening the pot in terms of property tax

1:26:35there are partial assessments that you could look out which

1:26:38specified uses but that area utility users tax does have

1:26:43some flexibility but I think I would also

1:26:46think that in many cases most of your utility user taxes

1:26:50are pretty much at the top of either

1:26:53what you are allowed by law or what

1:26:55the market would really bear.

1:26:57Business License Tax you do have the ability

1:26:59to make some changes there but anything that the tax requires

1:27:03a vote of the people on if it's a general tax that

1:27:05requires a 50 plus one 50 percent plus one.

1:27:11Approval at the ballot box to do that.

1:27:14And you're right.

1:27:15So you know the vehicle license fees intergovernmental revenues

1:27:18those are all pretty much decided

1:27:20mostly by it by other agencies.

1:27:22So there are only areas where you really have the ability

1:27:24to make some move are in those volatile revenue

1:27:27source with sales taxes you know the local transaction you use

1:27:33tax to the local sales tax measure something

1:27:35that helps the area out.

1:27:37But again there's some limitations in terms of what

1:27:40you can do there and it's subject to voter approval

1:27:43as is real property transfer tax which was the subject

1:27:47of Measure B I believe right.

1:27:49Proposition Right or the measure that

1:27:51was passed in the last few years that was set to really help

1:27:59create some better fiscal sustainability for the city

1:28:03as a result. So you're right.

1:28:05Just what I'd say is that you know the volatile revenue

1:28:07sources are the ones where you might be able to do

1:28:09a bit more stable revenue sources there's

1:28:11not much you can do unilaterally to make make adjustments there.

1:28:14So in simple math we take the real property transfer

1:28:17tax out which is 5 percent.

1:28:20We probably would be a 64 or 65 or 60 40 split

1:28:25like you want us to be rather sorry we

1:28:30would be to post because I've already popping up Yeah.

1:28:34But you know obviously we've got we've needed that revenue

1:28:38and that revenue is in the volatile side of the pie.

1:28:41So thank you.

1:28:43Yeah.

1:28:44And again if it's not a bad thing that facility have more

1:28:47ball Robbins forces it just comes with a little bit

1:28:49of extra risk.

1:28:49And what that typically does what agencies will typically do

1:28:53is they'll set their reserve levels

1:28:57and their minimum reserve threshold a little higher

1:28:59perhaps than what other agencies might do that have

1:29:03more stable revenue sources.

1:29:06So just to recap and provide some context in terms

1:29:10you know your financial reality you

1:29:12do have some very strong some very strong points

1:29:17with your your your revenues.

1:29:19You have a very strong property tax apportionment rate.

1:29:22The statewide average is around 13 to 15 percent level

1:29:27and yours is is very high much higher than that.

1:29:31I used to work for a city that had a 26 percent

1:29:34apportionment rate that was considered

1:29:36an embarrassment of riches.

1:29:37That's very positive when it comes to stable revenue source

1:29:41and allows you to capture a greater piece of the property

1:29:45tax pie that people pay.

1:29:48Based on their assessed valuation

1:29:50your real property transfer tax is

1:29:52providing you a diversified revenue source

1:29:54and that that's a positive.

1:29:57You know legislative relief that you

1:29:59got that allowed for your half cent

1:30:01local sales tax to not count against the 2 percent cap.

1:30:05That's very helpful and gives you a little bit more capacity

1:30:08in an area of a local sales tax rather you do have relatively

1:30:12low debt obligations and you have a lot of fiscal fiscally

1:30:17responsible provisions in your labor agreements you

1:30:19haven't necessarily given the whale the store as many other

1:30:22agencies have in terms of providing very lucrative post

1:30:26employment health care benefits and other areas like that

1:30:29but there are some challenges the city has depleted its

1:30:35reserves and the general fund over the years you know

1:30:40the opportunities to implement perhaps some new revenue new

1:30:42sources are pretty limited And frankly

1:30:46what that means is that the city is

1:30:47going to have to really take a

1:30:48fresh look at how much is the community

1:30:54willing to pay in terms of the service

1:30:57levels that are provided.

1:30:58And you're going to need to ensure that you're living

1:31:00within those means based on on the revenues

1:31:04that you're currently receiving.

1:31:06So you know there are some also additional challenges

1:31:09that you have as well.

1:31:11You stormwater assessment be currently the costs is greater

1:31:14than than the assessment fees and that's going to have to be

1:31:17addressed your utility user tax revenues by and large are

1:31:22maintaining their own however as more and more people cut

1:31:25the cord and go away from landlines even less using cell

1:31:32phone and more using Internet services which are not subject

1:31:34to the utility users tax that could be an issue as well

1:31:38as the fact of people cutting the cord as it relates to video

1:31:43services fewer people are with entity now or even satellite

1:31:49providers and are moving towards streaming their content online

1:31:53and that's going to have an impact on utility

1:31:56as your tax revenues over

1:31:57time let's keep lighting district of also

1:32:00in a similar situation from what our assessment

1:32:02fee that your current cost greater

1:32:04than those tax revenues.

1:32:06Your personal costs are continuing to grow.

1:32:10We have no increases in pension and health

1:32:12costs them which I'll talk about a little bit later especially

1:32:14in light of the the the covered nineteen pandemic

1:32:18that we're dealing with and the economic markets

1:32:20and how that might impact pension costs in the future.

1:32:24And then there are several infrastructure improvements

1:32:27that were identified in parks master plan

1:32:29and your paper management study that are currently funded

1:32:32below on what the levels were that were

1:32:34indicated in those two those we turn then to the future of.

1:32:40What does your five year forecast really show and again

1:32:43this is the baseline forecast that includes the property

1:32:47transfer tax revenues they were expected to receive from

1:32:50Measure B and currently that forecast and these lines that

1:32:53you're seeing here the red line is expenditures and transfer

1:32:57about and your the blue line is revenues and you know the city

1:33:06yourselves council members and staff work to find a way to be

1:33:11able to in this current fiscal year be able to create a budget

1:33:15that had revenues exceeding expenditures but the long range

1:33:20forecast shows that those will turn and primarily the reasons

1:33:24or the assumption about your pension costs and other health

1:33:29costs health care costs that

1:33:31could exceed a growth in revenue streams

1:33:35that might be seen in those in the future years

1:33:39And so as we look at this in a little different way

1:33:43I mean again this is all before this covered 19 pandemic

1:33:47that we're dealing with here is that the red bars

1:33:51on the left side show what the annual deficit is.

1:33:55That was related to those two lines that you saw earlier.

1:33:59And while your budget for 1920 in your forecast

1:34:02should during nominal less than two hundred

1:34:05thousand dollar surplus is the forecast

1:34:09does indicate that you will draw down your reserves again

1:34:12starting in 2020 21.

1:34:17Route 24 25 if no action were taken now

1:34:21I'm going to compare this now and I'm on the right hand side.

1:34:25This shows your three levels of different operating reserves

1:34:28of the minimum operating or short 10 percent

1:34:31the GFA way recommended reserve levels of 17 percent

1:34:35and what the city's minimum operating reserve is 10 percent

1:34:39off the emergency reserve that you've tried to institute as

1:34:43well and as you can see your reserve levels are currently

1:34:46below that and of course Kenneth Rubin forecast

1:34:50if no changes were made if it was

1:34:52scheduled to go below zero again starting in twenty three

1:34:56twenty four.

1:34:58However and what we'll be discussing a little bit

1:35:01is the concept of reductions cost reductions

1:35:07that were that are being proposed for the 2020 2021

1:35:11bucket and when we overlay those cost reductions into your model

1:35:16what does that look like.

1:35:17Well again pre covered 19.

1:35:21It appears that those human dollar cost reductions would

1:35:25serve the city very well in being

1:35:27able to write its fiscal ship.

1:35:29You see your surpluses then start growing

1:35:32and you're starting to put more money back into the reserves

1:35:36to grow those reserve levels up.

1:35:38And with the forecast it would show that you would have

1:35:41recovered from basically at 0 2 increasing your reserve

1:35:46levels to the 17 percent minimum reserve level that recommended

1:35:51by the government finance option both the Asian

1:35:54and it's starting to get closer towards your

1:35:57your desired reserve levels which

1:36:01is equivalent to basically almost

1:36:03three months of annual operating expenditures.

1:36:06So the two million dollars and cost reductions which you're

1:36:10talking about here at the end of our presentation

1:36:13would serve you well in this in this current environment

1:36:17in the environment that we were in prior to this whole March

1:36:2016th this timeframe.

1:36:22And so again prior to that you know the long range forecast

1:36:26there's some areas where the forecast needs

1:36:28to be sweetened a little bit.

1:36:31There was not a an assumption for a recession in there

1:36:36and we believe that separate from what we're dealing

1:36:40with right now is that there would need to be a recession

1:36:42area impact and there it should really also

1:36:46be extended to 10 years you saw basically a five year forecast

1:36:50and we recommend that it be extended to 10 years

1:36:52because your local sales tax rate

1:36:54will expire in 2027 if it's not renewed

1:36:58by a vote of the people.

1:36:59And that's good for you to see what that looks like.

1:37:02If that were not to be able to continue so that you're looking

1:37:05at the long term the 2 million dollars does help solve

1:37:10that structural gap problem.

1:37:13And if any additional revenue sources were identified frankly

1:37:18they're very limited and the and they

1:37:21would need to be implemented time

1:37:22here to avoid depleting general fund reserves

1:37:25even if a we're able to be done.

1:37:28But the twenty two million dollar reductions

1:37:30that are being proposed for 2021 would

1:37:34definitely help you in the current environment

1:37:39prior to covered 19.

1:37:41But let me stop there.

1:37:42We're going to transition them to the code

1:37:43to 19 impacts on what we see as some of the fiscal impact.

1:37:47But let me see if there's any questions based

1:37:48on the information that we just see if no one else has got

1:37:56questions I I would like to acknowledge I think it was

1:38:00your slide with the pre to the 2 million dollar cuts

1:38:04that the the negative bars below this point yet.

1:38:08That was at the very negative rather ago.

1:38:11That's very that's very reminiscent of the curves

1:38:13that Mr. Resi was presenting to us back in February

1:38:18with you know without the 2 million dollar cuts.

1:38:22If you go to the slide with the 2 million dollar cuts that

1:38:26again is also similar to Mr. PSI had three curves of one

1:38:31million dollar cut curve a two million

1:38:33dollar cut in a three million dollar cut curve

1:38:36and the 2 million dollar cut curve did did end in 20 25

1:38:42and did reflect the.

1:38:44Again what we're seeing here on the left side

1:38:46the this low reduction in increases

1:38:50to the reserve over time.

1:38:53So this is this is very similar to the information

1:38:56that we received back in February

1:38:58and I have to very very similar because Mark have been very

1:39:01helpful to us in terms of providing us with the forecast

1:39:05What we can understand from about is

1:39:08that we're getting behind that.

1:39:09I do acknowledge Mark think about natural Forgive

1:39:20me if that was the question had a hard time finding it.

1:39:23No.

1:39:23Holly somehow your voice is echoing to significantly

1:39:27and so all we're doing is a big vibration

1:39:31So Mr. fidelity go ahead Yeah.

1:39:34Thank you.

1:39:35There's something so many issues and so many questions

1:39:39I'm not sure where they all fit but I want to throw a few out

1:39:42that I had written down just one for now.

1:39:45You say Steve that it's very very good that we have

1:39:49this 2 million dollar cut from our budget for the upcoming

1:39:54budget years And I would say it's an unnecessary

1:40:01and had we not had we not done that absent what

1:40:06we need to do going forward we talk

1:40:09about our profile solvency.

1:40:13I just want to bring up the the B word the b

1:40:16word would we be closer to bankruptcy had to be not done

1:40:21the 2 million dollar cut I know that we don't

1:40:25have a high debt threshold which is a positive thing for cities.

1:40:29Well give me your view on that a preview of coming attractions.

1:40:34I actually helped him for exactly about

1:40:37I didn't know when that question should I hold that back

1:40:41then and let you go forward.

1:40:43Track where you to take with you if we can address that.

1:40:47I just think we're you know we're closer to bad news

1:40:51than good and I just wanted to get your view on that.

1:40:55Understood all older affect hearing

1:40:56into making actually Any other questions or should I. Yes.

1:41:06Michelle.

1:41:06Michelle Okamoto has a question.

1:41:09Yes at my My question was going back to that same slide

1:41:15where we implement two million dollar cuts

1:41:18and how that translates into the future What

1:41:22exactly were we predicting with our pension costs

1:41:27in this scenario.

1:41:29Yeah I would change if the discount rate changed.

1:41:34Yeah.

1:41:34The the forecast incorporated the assumptions

1:41:39that were based on the actuarial study that was completed

1:41:42by Purves and provided to the city in roughly the August

1:41:462009 in era where it assumed that you would have

1:41:51some growth of of your pension costs

1:41:55until those are incorporated in there

1:41:57in the factually What led to if I can go back

1:42:00to the ugly part of this slide.

1:42:03That's what led to that continuing

1:42:05widening gap between expenditures and revenues.

1:42:09The it does not incorporate any assumption

1:42:12related to significant market reductions.

1:42:16I currently see him right now but there's like a roller

1:42:20coaster on a day to day basis.

1:42:22So it did assume that Purves would hit its 7 percent

1:42:25discount rate over the next few years

1:42:28in terms of a return on investment but did

1:42:32include rising pension costs in accordance with what

1:42:36the actuarial study indicated.

1:42:39So which was about basically a rise of about 0 2 to 6 percent

1:42:44over the next several years.

1:42:46I'm in terms of what you're paying for pension costs.

1:42:49Okay thank you Any other questions from council

1:42:56members of able senator Quito.

1:42:59No thank you.

1:43:04Okay.

1:43:04So the world has changed in the last month.

1:43:09I feel like it's changing every day doesn't it.

1:43:12You know when I appreciated the council member that I mentioned

1:43:17you know all the steps that are currently being taken locally

1:43:21that we've looked at this and we've

1:43:24been addressing this over the last couple of weeks

1:43:26and been meeting with several cities up and down the state

1:43:30to really kind our finger on the pulse of what the impacts are

1:43:33going to be for them.

1:43:36And also with our staff and some of which you know

1:43:39are here economists by trade are trying

1:43:43to do some of that crystal ball gazing

1:43:44and try to identify what's going on here

1:43:46and what are the potential impacts.

1:43:48And it really starts with this whole concept

1:43:50of all of us being sheltered in place in order for us

1:43:52to get over this incredible disease.

1:43:55Virus that we're all fire fighting right now

1:43:57and you know the number of cases continue

1:44:00to rise on a daily basis.

1:44:03You know there's some thoughts nationally and statewide

1:44:07and regionally we're starting to get

1:44:09closer towards the curve is starting

1:44:11to get a little bit more.

1:44:12And it's not growing as exponentially

1:44:14as it was in this whole period here between March 18

1:44:18through March 30th where you know the steps that we are

1:44:21taking to flatten the curve are being helpful

1:44:25but the curve is still rising.

1:44:27And so you know clearly in light of that you know most

1:44:31of the United States now and this was updated just two

1:44:34hours before we we started this council meeting tonight

1:44:38most of the United States is in some type

1:44:40of a stay home slash shelter in place type of an environment.

1:44:44But what was very dramatic was the unemployment numbers that

1:44:48came out from the March 28 report that was released

1:44:53earlier just this week devastating numbers and the box

1:44:57that you see down the bottom left hand corner here

1:44:59really tell that story that during the Great Recession

1:45:02that we all lived through from 2007 to 2009 ish timeframe

1:45:07and then we had the residual effect facilities afterwards

1:45:10we lost more jobs in these last two weeks

1:45:14with this pandemic in terms of volume of unemployment claims

1:45:18then over the two years during the Great Recession.

1:45:22And that is very telling in terms

1:45:24of what the potential impacts could be animals.

1:45:26Clearly the impetus behind some of the the federal stimulus

1:45:30package to see if there was some way

1:45:32to try to offset some about you're

1:45:35aware of that two trillion dollars.

1:45:37I'm not going to go into depth much in here

1:45:38and then slide in terms of the assistance that was made

1:45:42for individuals but suffice it to say

1:45:45that some of this assistance is going to be

1:45:47helpful to to several folks.

1:45:50However the impacts will not be felt immediately

1:45:55and will not address people that are currently

1:45:57either unemployed or underemployed

1:45:59by businesses needing to shut down part of this.

1:46:03This is pandemic responsive.

1:46:05We have to flatten the curve And so as you know in California

1:46:10the shelter in place was put into effect in mid-March

1:46:14through at least the end of April

1:46:17You know and the governor is currently

1:46:19trying to figure out how much longer that's going to go.

1:46:21We all probably have our own ideas about how long

1:46:24the shelter in place is really going to last.

1:46:27But on the left what you're seeing

1:46:28is what the governor's order included

1:46:30in terms of what was allowed to remain open

1:46:33and what was needing to be closed.

1:46:37And so you know gas station the central businesses that Nancy

1:46:41mentioned earlier grocery stores banks et cetera

1:46:44those are you know still open.

1:46:48But we have to think about this also

1:46:50from a city's perspective in terms of what

1:46:52does that mean for sales tax.

1:46:53What does it mean for transient occupancy tax.

1:46:55What does it mean for all these other types of revenue sources

1:46:58that we're reliant upon here.

1:47:01You know there's a lot of things that are needing that have

1:47:03had to have been closed.

1:47:06Per the governor's order and even some of the subsequent

1:47:10you know shelter in place orders that were just released

1:47:13by the six Bay Area counties that include Contra Costa

1:47:16County But what's really close.

1:47:18I mean you're we're seeing shopping centers for the most

1:47:20part being closed and non grocery retail stores

1:47:24are pretty much being closed.

1:47:27There's a lot of services a lot of several small long chain

1:47:30restaurants just not been able to make a go at it

1:47:32and they've had to close as well.

1:47:35And so the impacts that we're seeing from this

1:47:37are have the potential to be devastating in terms

1:47:40of the revenues upon which cities

1:47:42rely to provide services.

1:47:45You know this is a graph that focuses mostly

1:47:48on the unemployment cuts in California

1:47:50that really is exacerbated by those things that

1:47:54are really closed.

1:47:55That was in that previous slide and and more and more we're

1:47:59seeing that as businesses are needing to close

1:48:03or as people are unemployed they stop spending

1:48:06money on headcount or delivery and they

1:48:09start going to the store and you know making bread at home.

1:48:13You flour yeast are not available.

1:48:15We won't go into toilet paper but all

1:48:17of these different types of things

1:48:19the impact that are having at the local grocery

1:48:22stores people are needing to are saving money

1:48:26and not spend as much on the outside

1:48:27because they don't know what the future holds.

1:48:29And that has a potentially devastating impact in terms

1:48:32to be of the impact revenues.

1:48:35And so as we have talked with other agencies

1:48:38across the state to figure out what

1:48:40some of the potential impacts are and we've talked

1:48:42with the League of California cities and some of you

1:48:44know Michael Coleman who is the league's guru financial guru

1:48:49we've had direct conversations with him to help try to read

1:48:52some of these tea leaves.

1:48:53We see six big areas where there potential impact

1:48:58to city revenues in the first area is in property taxes.

1:49:03Now you would think that under the Teeter plan which

1:49:05some of you are aware of that.

1:49:07Well we're gonna collect what whatever

1:49:09has been assessed this year and that could be true.

1:49:12But if people are not able to make their property tax

1:49:15payments it could be a cash flow issue in terms of not receiving

1:49:18up on time and maybe not receiving it until when they

1:49:22are able to pay and that could be potentially next year

1:49:24even though that includes penalties.

1:49:27But clearly you know lower construction and home sales

1:49:30are more ultimately going to hit some mental roll payments that

1:49:33may not hit today but that might hit tomorrow

1:49:37next year if if that trend continues

1:49:40and if the longer term impact is of people not buying which

1:49:45we've had a white hot real estate

1:49:47market as we all know over the last few years in the Bay Area.

1:49:53You know we could see ourselves back in 2009 10

1:49:56timeframe when there were multiple commercial

1:49:58developments and residential developments that were

1:50:02requesting reassessments of their

1:50:05their assessed value to reduce their property tax.

1:50:08So we're gonna have to watch that in terms of what happened

1:50:11to the real estate market that somewhat will be

1:50:13dependent upon how long this shelter in place was

1:50:16and what the depth of the unemployment

1:50:18is going to be over time real property transfer tax

1:50:23that you know that would also have an impact as well.

1:50:25Mayor.

1:50:25Yeah.

1:50:26Sorry.

1:50:27It's okay.

1:50:27Can you go back one slide.

1:50:28I want to the Prop 8.

1:50:30Can you refresh my memory what what type of what

1:50:35what has to happen to trigger a prop 8 reassess Sure.

1:50:39Yeah.

1:50:39So so two things firstly that an individual property owner has

1:50:45the right to request an appeal of an assessed value

1:50:51with the county assessor's office.

1:50:56And that triggers in the assessor's office

1:50:59to go out and take a look at the property

1:51:00take a look at the value of that property

1:51:03and determine whether or not there is

1:51:05an impairment to the assessed valuation of that property

1:51:08and if it's below with the prop 13 tax assessment

1:51:11basis for that property the assessor

1:51:14can approve a reassessment to reduce that amount now

1:51:19without assessor's office then needs to do

1:51:22so let's say the assessor comes out and says

1:51:23and this is what happened in 2010 11

1:51:26when a lot of commercial properties

1:51:28appealed the assessed valuation of their property

1:51:32because of the recession we were in.

1:51:33We saw write downs of 20 to 40 percent of commercial values.

1:51:37And so when it was reduced let's take a number like 20 percent

1:51:40when it's reduced to 20 percent each year.

1:51:43The assessor's office will do another reassessment

1:51:46about property and might be a direct assessment

1:51:48of that property by having an appraiser go out

1:51:50and appraiser or it could be done

1:51:53more collectively if it's a whole bunch

1:51:54of residential units.

1:51:56And we'll reset the assessed duration

1:51:59and make it go back up until the time it reaches its prop 13

1:52:04cap though Prop 13 property values go up

1:52:08subject to a cap of 2 percent per year

1:52:10based on California's UI.

1:52:12And so if the Prop 8 assessment was done

1:52:15a reassessment was done and dropped it by 20 percent.

1:52:18If that property went back up another 25 percent

1:52:20let's say that next year.

1:52:22Read completely rebounded.

1:52:24It would only go as high as the.

1:52:26The assessed value would be done under Prop 13.

1:52:30That makes sense.

1:52:31It does.

1:52:32Mr. fidelity we're still muted.

1:52:41Sorry I'm fine.

1:52:51Do you have any questions Mr. FDLE.

1:52:54No I don't.

1:52:54I'm fine.

1:52:55Okay.

1:52:56Thanks.

1:52:57Yep.

1:52:58Okay Steve thank you.

1:52:58You can proceed Sure.

1:53:01So we just mentioned the real property transfer tax

1:53:03and especially now that this is very pertinent to you Measure

1:53:07D if we see property sales slowing of course the transfer

1:53:10tax to be hit potentially hard And that's typically

1:53:16paid to the city on a monthly basis

1:53:18from the from the the County Tax Collectors office.

1:53:23Sales tax and local transactions tax

1:53:26we've had some conversations with the HDL companies

1:53:28and muni services to find out kind of what they're seeing

1:53:31and what they're expecting.

1:53:32Clearly there's gonna be a hit in this next next three

1:53:36months in terms of the businesses that are closed.

1:53:40If it continues and lingers longer as the unemployment

1:53:45rates continue as they are and we start hitting

1:53:47a deep recession like we had back in 2009

1:53:51we could end up seeing sales tax being reduced by as

1:53:53much as 25 percent over time.

1:53:57And so we're just going to have to watch that.

1:53:59As you may be aware the governor was at Friday again.

1:54:03Things change so quickly the governor allowed or sales tax

1:54:09payers that pay sales tax less than a million dollars annually

1:54:14to be able to defer their tax payment for the fourth quarter

1:54:18or the fourth quarter the second quarter of the calendar year

1:54:22to July 1st.

1:54:23So there could be some cash flow issues related

1:54:27to the delayed payment and receipt of sales taxes

1:54:32and that will likely reduce the amount of the sales tax

1:54:37I'm installment that committed to you

1:54:40in the April May timeframe.

1:54:42So that is going to have to be watched very closely in terms

1:54:45of cash flow and means printing the tax asset sales tax

1:54:50or property tax at a sales tax.

1:54:53If I said it's probably not a sales tax I OK now I get it.

1:54:58Thank you.

1:54:58Yeah.

1:54:59There are some county comptroller's

1:55:02offices and Tax Collectors office like San Mateo County.

1:55:05Just yesterday indicated that they would allow

1:55:09for a one month delay in the receipt

1:55:11and the payment of property tax without penalty.

1:55:14I'm sorry I'm not aware of the Contra Costa county tax

1:55:17collector who's done take them out move but me tell County did

1:55:20and so that's another thing that's

1:55:21going to have to be watched when it comes to property taxes.

1:55:24Again if you could just temporarily

1:55:27delay it doesn't necessarily mean people

1:55:29aren't going to be paying otherwise.

1:55:31As a result of those moves to Quixote if there was

1:55:35a significant amount of hotels and emails Reno

1:55:38this could have a little bit more dramatic impact

1:55:40but we're seeing you know travel has just stopped People are

1:55:44doing this to be able to meet with clients now

1:55:46and and for business travel and so TRT revenues are dropping

1:55:50business license tax revenue has the potential to drop as well

1:55:54just depending on what we end up seeing with respect to business

1:55:56closures and if they stay just temporarily closed

1:55:59or if they end up having to shutter their doors.

1:56:02As a result of the the length of the shelter in place orders

1:56:05that are in place and then recreation programs.

1:56:08You know I mean people are having to stay home.

1:56:10So it's kind of hard to run recreation programs

1:56:13in the traditional way.

1:56:14You know the city of Pleasanton recently converted some

1:56:17of their programs online but still

1:56:20they're just doing that to try to maintain services as much

1:56:25as possible in the community knowing that the revenues will

1:56:27not necessarily flow from that.

1:56:29But you know I mean a lot of cities

1:56:31are having to look at just issuing rebates.

1:56:34Some agencies are actually making the bold decision

1:56:37that you know what.

1:56:39Over recreation programs even through the summer

1:56:43are gonna be closed.

1:56:44I mean that has a dramatic impact especially

1:56:46those programs that relate to daycares summer camp

1:56:49programs could have a really devastating impact in terms

1:56:53of the recreation programs that are provided

1:56:56and the revenues that come along with those.

1:57:00So you know we're also seeing some cities that are also

1:57:02increasing some of their costs where

1:57:04either from fire and Hamas responses

1:57:06or relates to this this pandemic.

1:57:10I mean please support some agencies are being requested

1:57:13to open emergency shelters that are incurring some costs that

1:57:17otherwise would have maintained their facilities

1:57:21closed during this during this crisis.

1:57:23I'm operational and technology costs and some agencies

1:57:27are having to give their employees paid time

1:57:30off on which maybe there's no increase in costs

1:57:33but there may be a loss in productivity

1:57:35and just not trying to figure out how

1:57:37do we move forward from here.

1:57:39So there are some cost increase now that this is good news

1:57:44but more bad news as relates to the stimulus package

1:57:47as it relates for local cities and especially

1:57:49the city five adults.

1:57:51Reno is that the stimulus package

1:57:53did have some components in it the largest of which

1:57:57was the 4 for local agencies was corona virus relief fund that

1:58:02were provided about 500 billion dollars

1:58:04relief to local agencies.

1:58:06I'm sorry a hundred and fifty billion dollars of relief.

1:58:08Khalifi Yeah the state of California

1:58:10will receive about fifteen point three billion

1:58:12of that and 45 percent of that has

1:58:15the opportunity to go down to the cities

1:58:19over 500000 population.

1:58:22And so unfortunately there's not going

1:58:24to be any relief from the coronavirus relief fund

1:58:27as it relates to the city of El Serino Frankly most

1:58:30cities in California and some of these other areas

1:58:33may have some some relief but you know the bottom line is

1:58:37what we're what we're instructing and recommending

1:58:41to our cities to do is that any increase in costs that you

1:58:45experience that are above the normal costs

1:58:48that you wouldn't have normally incurred without the pandemic

1:58:51having taken place just to make sure that your your house

1:58:55is in order as relates to FEMA reimbursements

1:58:57and that really comes back to our next slide

1:58:58about how cities are addressing these negative fiscal impacts.

1:59:03Make sure that you're capturing your costs

1:59:05and tracking those incremental cost separately so that if any

1:59:08of the areas of relief that were on the previously mentioned

1:59:13slide come to fruition and allow for reimbursement of some

1:59:18of those costs you'll at least have your house in order

1:59:20to make those and I understand from Mark

1:59:22that you're currently doing that and so that's that's good.

1:59:25And making sure that you're doing that but there's

1:59:27some other areas you know it may require you to reassess how

1:59:30much you're either allocating over

1:59:32to year to your internal service forms

1:59:35or even reassessing your cost allocation

1:59:37formula of general fund costs that are going to other funds.

1:59:41You may need to reduce the scope of some capital improvement

1:59:44projects because some of those projects

1:59:47may have a long term fiscal impact on the general fund

1:59:51or otherwise the general fund is having to supplement sources

1:59:55such as gas tax and sales tax revenues that come from fuel

1:59:59that help of let's say street overlay projects.

2:00:02So there may be some some need to defer some of those projects

2:00:06as well as some significant maintenance in order

2:00:10to cope with some of the revenue impacts

2:00:13that we're seeing also to other areas of workforce

2:00:16reductions I know that you've already taken steps to do that.

2:00:19I'm going to draw that on a later slide here.

2:00:22You know some agencies are doing temporary furloughs.

2:00:26Or just complete layoffs of staff

2:00:29that are not needed during the shelter in place times

2:00:33that we're currently in.

2:00:34And then operational reductions just canceling various programs

2:00:38and you know one of the other parts that comes along

2:00:40with this rocket this this area of how they're dressing up

2:00:44is one recommendation from us that it's as you start closing

2:00:50some programs or reducing service levels you need to come

2:00:53up with a transition plan to return service

2:00:56model back to where they were.

2:00:57And so understanding what the sequencing the priority

2:01:00of those are based on understanding what

2:01:03the costs are of of implementing those

2:01:06is going to be something that's critical to do during this town

2:01:09downtime in anticipation of when we're finally able to get out

2:01:13of our home and try to return to some type of life that

2:01:16resembles normal again.

2:01:18So So with that let me pause and see if there's

2:01:21any additional questions on this whole section

2:01:23before I start getting into the impacts that we see it for.

2:01:26For also read on what this could mean to your forecast.

2:01:29Steve on that last note that you made

2:01:31the recommendation for a transition

2:01:33plan to reinstate services.

2:01:35What what would that look like I mean that's somewhat

2:01:38that's sort of like identifying staff that needs to be rehired

2:01:43and identifying buildings that need to be reopened if they've

2:01:47been closed for some period time type of maintenance that may

2:01:49have to be done on a h h vac system that's been

2:01:52shuttered in place for months.

2:01:55What are some of the things that you're thinking of when you say

2:01:58a transition plan to reinstate services

2:02:01going ferry in a word yes director where you really are.

2:02:05But let me let me give you an example.

2:02:08Recreation programs that may be shuttered and shut down

2:02:12through the summer months you may be having to lay off

2:02:15some recreation leaders recreation

2:02:17coordinators you know those types of positions

2:02:19maybe even some full time work reasons

2:02:21to deal with some of those issues.

2:02:23As you start then thinking about okay if we're if this is not

2:02:27going to happen we're not gonna be able to start

2:02:29back up until the fall.

2:02:30What areas should we be looking at and reopening again.

2:02:34Do we start with contract classes.

2:02:36Do we start with after school programs

2:02:39you know how do we need to do that.

2:02:40And then and then understanding what the staffing plan

2:02:43is for that then because you have now

2:02:46furloughed or laid off perhaps staff

2:02:49associated with those programs.

2:02:50What does the sequencing and bringing them back

2:02:53we may need to bring the coordinators back early

2:02:55because they need to start planning those programs

2:02:57and get those ready to go.

2:02:58We'll need to bring the admin staff back and help

2:03:01us turn back on the recreation registration application

2:03:06so that people can start registering for classes

2:03:08again until you'll need to think about

2:03:10and do all those things in a sequence

2:03:13and the same thing would hold true to facilities

2:03:15maintenance parks that may be closed.

2:03:18You know those types of impact Great thank you.

2:03:22Anyone else have questions at this time.

2:03:25I just have a comment that if we did if we were to shut down

2:03:29recreation for the summer that's going to prevent

2:03:32a ton of people from going back to work because recreation

2:03:35child care for myself my family and so many people in the city

2:03:41just wanted to throw that out there that as soon as we can

2:03:45possibly start up the summer camps that will get

2:03:48people back to work Thank you.

2:03:55Comfortable with fidelity.

2:03:57I think customer be able to hear your voice.

2:04:00Go ahead.

2:04:01Yeah I think Rochelle what you just said points

2:04:06out the importance of our not only reinstating the programs

2:04:14but planning for reinstating the program.

2:04:16Phyllis all coordinated because people don't just

2:04:22say OK we're starting the class again

2:04:24tomorrow and everybody returning.

2:04:26It's not that simple they may have found other alternatives.

2:04:32They may not be coming back or maybe

2:04:37they told their friends how wonderful our program was.

2:04:40And there's twice as many people coming back.

2:04:43So you know we don't really we don't

2:04:45have such a good handle on the reregistration

2:04:53until it happens.

2:04:54I think This is Nancy just jumping everyone.

2:05:01I think also you know part of that planning for reopening

2:05:06is thinking through and prioritizing what

2:05:09are those programs that ought to be brought back on line first

2:05:13in figuring out a natural logical sequence based

2:05:16on demand based on cost recovery based on all of these factors.

2:05:20And so I think that the environment then

2:05:23demand is certainly part of it is just a little bit

2:05:26of an uncertain timeframe here because we don't know how long

2:05:29we're going to be sheltering in place

2:05:31and what that's going to look like.

2:05:32So figuring what you're reopening plan is

2:05:35and what to prioritize I think is

2:05:36to the point Steve was suggesting when

2:05:40I talk to people I know you have children who are

2:05:44in those programs or were in those programs

2:05:48and I think what are you doing now.

2:05:50Because some of them are still going to work

2:05:53and they are doing it by like my next door neighbors.

2:05:59There's a husband and a wife they're

2:06:01both working full time still.

2:06:03But one of them I think goes in the morning.

2:06:06They don't actually go anywhere I think one morning in one

2:06:09with Jay but they're working out of their house.

2:06:15And then you know the other one will watch the children.

2:06:19Well that's happening and I know my my grandson he's they've

2:06:26made is what I would call an emergency childcare

2:06:33school which is really a thing it's called T.K. AND it's run

2:06:41out of their house now instead of out of the normal facility

2:06:45and it's just a few kids that are coming.

2:06:48So that's a different facility but you

2:06:53can put any label you want on it it's still the same concept.

2:06:57So how are those kids going to come back to the facility.

2:07:04Who knows.

2:07:06So it'll it'll be an adjustment for at minimum Great Council

2:07:17over until Thank you Mayor.

2:07:21I wanted to find out if the yesterday the National League

2:07:26of Cities sent a letter to Congress requesting

2:07:30for the fourth emergency appropriations bill for cities

2:07:35and that includes all cities.

2:07:38So I believe radio is included in that.

2:07:41Is that correct.

2:07:43My understanding of what the NLC who've requested.

2:07:46Yes.

2:07:48OK.

2:07:48And that would very helpful to you

2:07:50and a whole bunch of others that we've really got left out.

2:07:54Yeah.

2:07:54So I appreciate our congressman to support this bill

2:08:00and I'm hoping we can have our residents make phone calls

2:08:04to Nancy Pelosi and to our congressman

2:08:09to make sure that cities for the size of El lender and residents

2:08:15know how important this fourth emergency

2:08:19appropriations bill is or small cities like Elsa Salvador.

2:08:24Well said council member they're council members I was just

2:08:28gonna say that that is one of their priority

2:08:30is that they accept that every working out.

2:08:32So that is good news.

2:08:35If I may hear just what when when I came to thinking about

2:08:39is everything we're talking about involves staffing

2:08:45and there was a time Nancy when I I'm one of the newer council

2:08:50members on on board and looked at the old strategic list

2:08:55of what our goals should be And I think

2:08:59I told you I thought they were pretty good

2:09:01just the way they were.

2:09:02And I think that exercise is pretty important to take for us

2:09:07because we're talking about services.

2:09:10What services do we want our city

2:09:12to provide and whatever services we decide like council member.

2:09:18Rochelle Pardue Okamoto mentioned

2:09:20if that's one of our Teamster priorities

2:09:24we need to have people there to to employ those services.

2:09:29But we may have other service You know we have other higher

2:09:32priorities and safety priorities and I think the money is

2:09:39with the staffing Oh you know the exercise of reiterating

2:09:43our priorities and then getting ready for staffing and then

2:09:47as you say the plan to come back on we

2:09:49will need to know how to be staff if we do.

2:09:52And I think that's a key component to all of this is

2:09:55getting ready and looking now.

2:09:57Now that we've cut 2 million dollars in staffing and re

2:10:00creating how we staff it just make a comment

2:10:05this is Nancy sorry just jumping in that Yeah I think that we're

2:10:09or obviously in difficult but also interesting times

2:10:13I think that there's a lot of ingenuity and innovation

2:10:16that's actually happening out of necessity.

2:10:19And so as the city is contemplating the future

2:10:23and how to come back I think that this

2:10:25is an opportunity kind of by force simply not alone.

2:10:30And I'm sorry no.

2:10:30But just generally say you know what are the top services

2:10:34and priorities for our community that we

2:10:36need to deliver ourselves.

2:10:37What can we do differently and how

2:10:39might change our service model to still meet

2:10:42the needs of our community.

2:10:44And it's not easy work but it really

2:10:46requires that commitment.

2:10:47And I think that the information that we obtained earlier on

2:10:51in the update to the strategic planning process

2:10:53would be helpful but it's not.

2:10:55It doesn't have a magic wall right.

2:10:57It just is an input that is important conversation

2:11:00for later cases.

2:11:05Gregg and I want to echo that that the 2 million dollars is

2:11:12that we have quote unquote cut the we've talked about I think

2:11:18several of the council members have said in the past tense

2:11:21that we've cut it.

2:11:22We've actually not taken that action yet.

2:11:24It's proposed for us.

2:11:26And so that you're that you are assuming that it

2:11:31has been a fait accompli.

2:11:33I applaud you but it is it is actually not occurred yet.

2:11:37And so keep down the back your mind as we go forward

2:11:40with our actions tonight.

2:11:42Thanks Without.

2:11:50Let me let me wrap up for presentation here

2:11:53and we'll talk about with some of the fiscal impact

2:11:55we fee that in your city.

2:11:59I just wanted to bring this slide back up again because you

2:12:02know there are some very good strengths

2:12:05that you have in terms of being able to buffet this storm.

2:12:09But the hardest part of this is that you her uses troubles.

2:12:12There's not there's no reason for her

2:12:14to be able to buffet this storm for the general fund.

2:12:17And so that really leads to where the need to really watch

2:12:21closely what's happening with your your revenues

2:12:25and your general fund and making and being prepared

2:12:28to make some quick decisions.

2:12:30Thoughtful yes quick decisions to ensure that you were

2:12:33able to go through that with prepared the slide really

2:12:40summarized what what I see as the top five revenue

2:12:43sources that really have the most unpredictable impact

2:12:46as a result of June 19 for the reasons

2:12:48that I've already mentioned tonight.

2:12:50And they go from property taxes and sales taxes

2:12:53all through the items that you see here

2:12:55that I think I've mentioned them and I don't have to necessarily

2:12:58beat this down but you know every everything that's

2:13:01on the slide right here you know that that ends up being about

2:13:0655 to 60 percent of your general fund revenue

2:13:09that are subject to some potential negative impacts

2:13:12there.

2:13:13As a result of that until what we've done

2:13:15is we've created a what we call are covered 19 emergency

2:13:22fiscal diagnostic tool to help us better

2:13:25understand what are some of the impacts

2:13:27that we see as a result Senator.

2:13:30It's a model that we've we've created

2:13:32that takes your existing long range forecast

2:13:36and puts it in and identifies the Verity level in terms

2:13:39of what do we see for property tax sales tax or utility users

2:13:45tax and what do we expect is going to happen in the future.

2:13:49And so we ran that model and I've just basically pulled

2:13:52some some screen scrapes from it and the first area

2:13:56is that what you see here is a chart that shows

2:13:59what the Reserve level goal is.

2:14:02Okay.

2:14:03This is just merely your 10 percent level

2:14:05the minimum reserve level.

2:14:07And of course as we know we're starting in 2019 20 Lower

2:14:12if you were to continue to spend everything that you had

2:14:15expected to spend in 2019 20 which we

2:14:19know that you've already taken some

2:14:20steps to reduce from part time.

2:14:25Galleries and other areas but if you were to have continued

2:14:29to spend and the revenues impacts

2:14:32that we see the sales tax revenue

2:14:34potential for some delayed property taxes.

2:14:39So all those other types of revenue source and recreation

2:14:42program revenues perhaps not happening.

2:14:46We could see the general fund being drawn down even further

2:14:50perhaps by a sum total of about 2 million dollars

2:14:53in this current fiscal year let alone

2:14:56the next year which then plummet into about an 8 million

2:14:59dollar draw.

2:15:01And this here all the the chart that we're seeing here

2:15:06assumes the city would implement which it hasn't been decided

2:15:10yet but assume that the city would implement

2:15:13the 2 million dollar cuts that are being proposed

2:15:17for discussion tonight.

2:15:19And so sorry that it stands.

2:15:21The the green the green does not the green line

2:15:24does not reflect the million dollar proposed cuts.

2:15:28No it does not.

2:15:29No it does not for the Green showing.

2:15:31It was like before.

2:15:32Right.

2:15:32But the red line does the red line does

2:15:35the red line incorporate that.

2:15:37I should have repainted this to show what it would look

2:15:39like before but we thought that before you were going

2:15:42to finish 2025 twenty six well above this 10 percent model

2:15:47basically.

2:15:48And let me let me dissolve because I can let you go on

2:15:52that that the almost 6 million dollars of of loss

2:15:58for next fiscal year of the recession forecast

2:16:04was that even touched on on your previous slide where you

2:16:08talked about the different revenue sources that

2:16:11were vulnerable Yeah.

2:16:14Yeah.

2:16:14So in my previous slide go back to it

2:16:19detailed what the projections were.

2:16:21We're seeing the likelihood of sales tax plummeting by about

2:16:2425 percent perhaps as a result of what happening which would

2:16:29be a moment that we're seeing which

2:16:31be about humanity probably 6.

2:16:35So you get to 6 million dollars in lost

2:16:38revenue so that's that's why that not going completely.

2:16:42It would mean it's a projection it's a model.

2:16:44So keep going but I wanted to get

2:16:47some sense of the the assumptions behind that 6

2:16:51million dollar drop next year.

2:16:53Right keep going.

2:16:53I'm sure you're going to tell us.

2:16:55I'll tell you right now few million dollars in sales

2:16:57tax probably about a half a million to a million

2:17:01in property transfer tax was the result

2:17:03of a significant slowdown in real estate transaction

2:17:07could be upwards of about a million

2:17:09or two million dollars and program revenues

2:17:11if recreation programs need to be shut down

2:17:14for a prolonged period of time reductions

2:17:17perhaps in property tax will result of reassessments if we

2:17:20see the market taking a significant dip

2:17:23in the next little bit.

2:17:24So based on a very severe recession

2:17:28that that could happen.

2:17:29And so it's showing you what the potential worst case perhaps

2:17:34impact could be if we were sheltered in place

2:17:38well beyond you know may into the summer months

2:17:44and that dramatic impact cascading impact that would

2:17:47have on unemployment and all of the other elements

2:17:50that that ultimately impact your revenue streams.

2:17:55And so there is the potential that that over the next three

2:17:58years starting with this current fiscal year

2:18:00that we're in that we could see a reduction of about 10

2:18:03million dollars in revenue if we hit the most

2:18:06severe areas and assumptions as it

2:18:11relates to this with this crisis.

2:18:15So in it's a model that we've that we're

2:18:17happy to make available to your staff to be able to work

2:18:21with and model this.

2:18:22And because I think a theme will be something that you're going

2:18:24I have to do to ensure that you're remaining solvent

2:18:28as an organization which I promise I will touch

2:18:31on here at a moment before we finish until I want to reflect

2:18:35though some of the actions that the city

2:18:37has already taken today.

2:18:38And there's there's summarized on the slide

2:18:40you know them better than I do.

2:18:41But right now there is something about some of this cannot Steve

2:18:46what you're talking about.

2:18:48Okay.

2:18:49So one slide I'm sorry I thought you were

2:18:51able to see the form on slide.

2:18:52You know the 53 years I had to remember you've

2:18:57generated slide 50 in the package

2:19:00that came to us earlier today.

2:19:03It's on page 86 of 97 I'm sorry.

2:19:08Well what's the numbers page 86 of 97

2:19:12in the supplemental package titled action number

2:19:17was taken today.

2:19:19Yeah.

2:19:19Slide number 50 slide number fifty actions

2:19:23all three don't have them today did you find that I'm

2:19:28working on it inside okay.

2:19:32Let me let me try to capture some of those insights

2:19:37on the supplemental path.

2:19:39So this current fiscal situation the type of fight that I'm

2:19:48on right now is actions also Rita has taken to date no age

2:20:00eighty six of ninety seven what's the number Page 8

2:20:07six eighty six of ninety seven cute to number one eighty six

2:20:44it's the slide immediately after the one that has gone

2:20:47to the theater on it one of my casual keys

2:20:53is that I lost my glasses I can't get

2:20:56them replaced until after the virus issue is over I'm

2:21:02I apologize.

2:21:04It's okay.

2:21:04I think I found page 86 of 97 Yeah

2:21:08yeah it sounds like actions Rosarito has taken to date

2:21:12got it right.

2:21:14Thank you so there your brief summary of basically the seven

2:21:22steps so that range from the potential to million dollar

2:21:27reductions that are being proposed for the 2020

2:21:30budget that is starting to have conversations with bargaining

2:21:36units in terms of restructuring benefits for the management

2:21:38group temporary unpaid furlough and part time employees city's

2:21:43already instituted a hiring freeze.

2:21:46I know that your finance director is having

2:21:48conversations with financial institutions

2:21:50to determine if tax revenue anticipation notes could help

2:21:54address potential cash flow needs

2:21:56and that's going to be something that's very very

2:21:58critical for the agency to to pursue because there is

2:22:03the potential if we have the severity of which we think

2:22:07could happen as a result of this pandemic

2:22:11that it could deplete your cash reserve.

2:22:14So that's something that I know that your finance director and

2:22:16City Manager are working on.

2:22:18You know that he's already negotiating with our bargaining

2:22:21unit to suspend the cost of living adjustments

2:22:24the current ammo you and then you

2:22:26know doing things like freezing any travel

2:22:28or any non-essential activities are pretty much frozen

2:22:32fast basically trying to to spend only the money that's

2:22:37absolutely necessary to maintain the core level of services that

2:22:43are currently being provided.

2:22:44With that we'll see if there's any other questions before I

2:22:47then jump to best practice and ultimately then address

2:22:50this question of insolvency and when does

2:22:54that trigger saying no hands up by.

2:23:02We will move on.

2:23:04Thank you.

2:23:05Good though.

2:23:06So there are some best practices and next steps for the city

2:23:10to take and this is the slide here that is the title

2:23:16as best practices relevant to also Rita

2:23:20and I believe it Slide 52 in your deck.

2:23:23I don't know what page number on supplemental intelligence

2:23:28so many pages 97 great but there are some no action long term

2:23:39practices that the city should really be looking for

2:23:42and really the short term ones are you know really taking

2:23:46the steps that are necessary to prepare for the short term

2:23:48revenue loss and addressing the cash flow

2:23:50needs The agency is absolutely critical.

2:23:53And then frankly short term is you need to find a way to get

2:23:57the general fund back in black.

2:23:59And I know that is very tough especially

2:24:01in light of a potential loss of revenues to the Magna too.

2:24:05But we're talking about that he's

2:24:07going to have to take some steps to try

2:24:09to avert an even more dramatic fiscal crisis and long term.

2:24:16It's two steps it's really creating

2:24:18a fiscal sustainability plan.

2:24:20And as well as really taking a look at the services

2:24:25that you provide prioritizing them identifying

2:24:28the cost for each of those are and then really identifying

2:24:31what are the things that we can that we can continue

2:24:34to provide based on limited number

2:24:37of available revenue resources.

2:24:39And so some of those short term actions

2:24:41I've included on a slide this next slide here that's

2:24:45titled short term action steps preparing

2:24:47for near-term revenue loss.

2:24:50Some of these you're already doing

2:24:51and I want to applaud the city for taking

2:24:53the practice steps to realizing the fiscal crisis

2:24:58that you're in.

2:24:59And and also with the nature of this pandemic

2:25:02and what's occurring there.

2:25:03But there are several steps ranging

2:25:07from you know as I mentioned earlier making sure that you're

2:25:10in compliance with FEMA and get reimbursed

2:25:12for some of these additional costs you're incurring.

2:25:14You've already instituted a hiring freeze looking

2:25:16at short term borrowing you're doing a lot of these things

2:25:19already and that's that's great The long term actions though

2:25:24really revolve around those two items

2:25:26which is creating a fiscal sustainability plan

2:25:30and implementing a smart budget smart budgeting concept which

2:25:34is really priority based budgeting and fiscal

2:25:37sustainability planning.

2:25:39This slide fifty seven and the all right for five

2:25:45I guess so far is is a ninety one ninety seven.

2:25:50Thank you very much.

2:25:52Is creating these composite comprehensive set

2:25:55of fiscal policies that will help stem the structural gap

2:26:00that exists between revenues and expenditures

2:26:03and as you see on the slide it you

2:26:05know the three areas that typically an agency will look

2:26:08to try to maintain service levels

2:26:12is to find ways to control expenditures better or even

2:26:15shift some of the cost of those expenditures to other forces.

2:26:19For example your stormwater assessment fees

2:26:22if you're if they're not I'm fully covering the cost

2:26:27of stormwater management.

2:26:30You know you'll need to look at increasing those fees that's

2:26:32not necessarily revenue and how much of that is making sure

2:26:35that those costs are shifted to those that really need to be

2:26:38paying for those which are the those that you're assessing

2:26:41the stormwater fees to the service delivery alternative

2:26:45other options to look at there that could you know result

2:26:49in either outsourcing insourcing or sharing

2:26:53services with other agencies.

2:26:55Revenue enhancements in this current environment that we're

2:26:57in is really a non-starter for the most part

2:26:59especially as we continue to see these unemployment

2:27:02numbers continuing to rise.

2:27:04But it's something that the city will need to look at long term

2:27:07and to the extent that those three actions do not solve

2:27:11the fiscal crisis then the agency

2:27:14is going to have to look at service level reductions

2:27:17that some people may say it's okay to look at service

2:27:20level reductions first.

2:27:21Others will say no we don't want to do that.

2:27:23We want to try to exercise everything within our control

2:27:25to maintain service that's possible

2:27:28and that's really up to the council

2:27:29to make those decisions in terms of prioritization

2:27:32how how you go about that in a fiscal sustainability plan.

2:27:36Mr. Mayor Yeah.

2:27:37Steve can you speak to like how responsive revenue is

2:27:42and can we generate new revenue in three months six months

2:27:47a year what what's the typical in your experience

2:27:49with other cities.

2:27:51How long is it from the time that Council identifies where

2:27:55they potentially might be able to get

2:27:57new revenue through developers spontaneous spurring

2:28:02development to come in and the development triggers

2:28:05new revenues through sales or property.

2:28:08You know there's obviously different types

2:28:10of revenue that's out there.

2:28:11And so I guess the morphs into two questions have we

2:28:16got all of the bases of type different types of revenue

2:28:19covered or is there a type of revenue out there

2:28:22museum fees or something like that that we're not covering

2:28:24and how take typically to go from the thought

2:28:30of a new revenue to actually getting that revenue.

2:28:33Right.

2:28:35So as it relates to fees and charges

2:28:40that you have the council does have the authority

2:28:42to make that decision to increase those fees up

2:28:45to a level of cost recovery of course

2:28:47you have to make some evaluative choices in terms

2:28:50of are we going to seek full cost recovery for everything

2:28:53that we provide to the city or are there areas

2:28:55where we're willing to subsidize a little bit.

2:28:58But if we're currently subsidizing a program by 60

2:29:01percent you know and trying to trim that down to maybe warmly

2:29:06subsidize it by about 20 percent that's an action that

2:29:09the council can take it could be implemented you know depending

2:29:13on what your ordinance timelines are typically those could be

2:29:15anywhere from up to 60 days which is related to development

2:29:19revenues but when it talks about increasing the base new

2:29:23development projects you all know better than I do and even

2:29:28though I have 20 years of experience working with local

2:29:30governments about you know the development curve that could

2:29:34take anywhere from two to 10 years

2:29:38to see those revenues coming in tax measures tax measures

2:29:42typically would require a vote.

2:29:45During a time when council members are also

2:29:48or or election.

2:29:49And so those are and even years.

2:29:52Right.

2:29:53Short of declaring a fiscal emergency of which

2:29:57the California Constitution Section 13 b which deals

2:30:06with basically the the issues of Prop 2 18

2:30:11and and taxing reading and ballot measures for tax

2:30:16measures does give you the authority

2:30:18to declare a fiscal emergency as long as a unanimous vote

2:30:22by the by the governing board in this case

2:30:25the city council you could then place a measure on the ballot

2:30:29off election cycle.

2:30:31That is something that is that is available to you.

2:30:34But going back to your question Mr. Mayor it can take anywhere

2:30:38from 12 to 18 months and in the best sense and that

2:30:42up to several years to see really those revenue

2:30:45measures coming forward which means practically speaking it's

2:30:50going to require some level of of expenditure reductions

2:30:54in the near term to be able to stem the tide of this as

2:30:59well just the crisis that you're currently

2:31:02in before recovered 19 in order to bring health

2:31:07to the general fund again.

2:31:09Yes.

2:31:09So looking at that chart that you showed the big red dip

2:31:12in that certainly that's going to happen

2:31:15over the next 18 months.

2:31:17And to get new revenues in or within that 18 month period

2:31:21is going to be scarce So we are looking at potentially needing

2:31:26to make smart expenditure choices that

2:31:31do plan for reinstate after that cut

2:31:34after the recession is over.

2:31:37Can you touch on.

2:31:38Are there revenue areas that we're not touching on

2:31:42and one that comes to my mind is working

2:31:44we don't charge for parking in Eldorado or that I know of.

2:31:49And so are there other areas of revenue

2:31:51that we're just completely not covering at this time.

2:31:57Broad brush stroke really good.

2:31:59We didn't do a deep dive into the the revenue potential

2:32:04we would with a fiscal sustainability plan

2:32:06but you know looking to make sure that you've

2:32:10utility users taxes an area you could

2:32:12but again that requires a vote.

2:32:14There are some potential to be able to increase some

2:32:17of those utility user taxes for that area of your franchise

2:32:23fees you'd have to take a look at that

2:32:25and see what the general fund might want to charge

2:32:29for solid waste collection which I understand is something

2:32:32that's really not going to be very applicable

2:32:35But it's something that you could really take a look at

2:32:37and determining whether you wanted to implement that

2:32:40but remember that's going to go to the ratepayers.

2:32:42Ultimately the better paying those.

2:32:46Absolutely.

2:32:46And looking to new revenue sources not yet I

2:32:50was thinking outside of our conventional revenue

2:32:54because we have all of those.

2:32:56But I was just curious curious if there's

2:32:57something we're not like like other cities

2:33:00our size would be able to.

2:33:03You've seen them have revenue in what I mean obviously we joked

2:33:08a couple of meetings go about casinos and racetracks

2:33:10and things like that.

2:33:11But clearly something that would be more fitting

2:33:15tells Cerrito in terms of new revenue sources.

2:33:19I mean that would have a short timeframe.

2:33:21You know of diversification question

2:33:24earlier about going to and finding new stable revenue.

2:33:28So if I'm on a theme if you haven't picked that up yet

2:33:38Yeah I mean you know from my perspective

2:33:40and again without having done a deep dive into your fee

2:33:42schedule and other things I mean there's not a lot of blurring

2:33:45out there in terms of new revenue sources

2:33:47and ultimately that's going to have an impact on people having

2:33:50to pay those those revenue sources right

2:33:52and what is the health of everything

2:33:53that's going on right now.

2:33:54In fact even just take the casino tax for example

2:33:56if we were to all of a sudden pop a casino up

2:33:59overnight you know that the San Pablo was pretty much closed.

2:34:03Oh actually it's not essential.

2:34:05Yeah yeah yeah.

2:34:08Great thank you.

2:34:09Thank you.

2:34:10A little less hands up.

2:34:11Yeah okay.

2:34:14Yeah I think that Gregg your point

2:34:15is that in looking forward it's using on the slide

2:34:19that we see here all of those pieces

2:34:21and really being as creative as possible.

2:34:24You know are there opportunities that you can adjust fees or get

2:34:28new options And so I think all of those things

2:34:32can be appropriately on the table I have one more thought

2:34:38in the function that we could have course

2:34:40like for the fun of it there were some raised hands

2:34:42and left want fml.

2:34:45I wanted to just mention real quickly.

2:34:49We did have someone write in and talk about potential revenues

2:34:53in terms of charging for our visits

2:34:57when the firefighters do medical visits

2:35:01And did you discuss that at all when looking over these plans.

2:35:06No we have not detailed the fulfillment

2:35:08of the various revenue streams that are available we're

2:35:11happy to do that for you.

2:35:12But you know we have gone into the facility

2:35:15that we would Do you know a big level in terms of you

2:35:19know what we're seeing in terms of your your fiscal health

2:35:23and then that really will open then questions in terms

2:35:25of doing a deeper dive to find some

2:35:27of the fiscal sustainability strategy that could help Yeah

2:35:31I might just make a quick comment Nancy.

2:35:33You know when we when we started this

2:35:35is all obviously pre copay 19 and so it

2:35:39was looking at a different operating environment.

2:35:42And as we had anticipated our original workshop with you

2:35:46it was around the strategic plan obviously

2:35:48still with a sensitivity and an eye

2:35:50toward the need to focus finances in light of what

2:35:56we're seeing with Kovac.

2:35:57We wanted to just provide you this preview forecast.

2:36:01Well we haven't had the time to do it as this has been

2:36:05you know emerging in the last couple weeks

2:36:07is to do a deep dive and do any kind of strategy suggestions

2:36:12and recognize that that could be something that is left wanting

2:36:18but I know that that is anticipated for next steps

2:36:22and this is even prior to Cove it

2:36:24we were recommending that the city do some financial planning

2:36:28and strategy Sustainability Strategy Planning

2:36:32now it's all the more urgent I think that to Steve's point

2:36:35that some of this is doing the analysis

2:36:39and making logical decisions but during quickly.

2:36:42So as to prevent any further issues

2:36:51we're really appreciate this really

2:36:53really for the critical decision that need to be made.

2:36:56It's really you know getting a grip on the problem

2:36:58and understanding about the part of the conversation

2:37:00tonight putting the priorities for service delivery

2:37:03you know which ones are the ones that are valued most

2:37:06and which are the ones that really we

2:37:07can afford in terms of the the revenues

2:37:11that are currently available.

2:37:14And then seeking if there is a revenue enhancement that could

2:37:17help pay for some of those services that are that

2:37:21are decided that are not otherwise affordable.

2:37:23I then implementing those priorities.

2:37:26I do want to address the Leighton question that's

2:37:28been sitting on the table for for quite a while now

2:37:31and there's just what is insolvency look

2:37:35like in the state of California and really the authority that

2:37:41governs this whole area goes a five or that was in 2011

2:37:49and provides full protection under Chapter 9

2:37:51I'm California agencies and what it basically

2:37:55does is that the provisions of HB 5 0 6

2:37:58allows agencies to ultimately retain control of how

2:38:02to address creditors and liquidity

2:38:06through an era of insolvency.

2:38:09And so and the statute indicates really to key provisions that

2:38:16are the litmus test of whether an agency is going I'm

2:38:19solvent it's not necessarily that the drawn reserves

2:38:23below zero but what it is is that number one

2:38:27that the municipalities financial condition

2:38:29would jeopardize the health safety

2:38:31and well-being of residents.

2:38:33And there's some objectivity to that but it has to be you

2:38:37know really pass the sniff test that you know there's

2:38:41the clearing declaring insolvency really required

2:38:45thing you know what we will not be able to maintain services

2:38:48like we had expected to.

2:38:50That could seriously jeopardize the health

2:38:52safety and well-being of our our residents.

2:38:55And the second is this is that a municipality is

2:38:58or will be unable to pay its obligations

2:39:02within the next 60 days.

2:39:04And that really leads to the concept of cash flow

2:39:07so filing for Chapter 9 in California

2:39:12really looks at the overall cash flow

2:39:14and how are you able to meet the obligations that you have.

2:39:17And those aren't necessarily external creditors those

2:39:21are your employees as well.

2:39:23Those are any obligations financial obligations

2:39:25that you have incurred that you're not able to pay.

2:39:30And so you know as a precautionary measure for El

2:39:33Cerrito to avoid insolvency there's really three things

2:39:36that we that we think need to happen first.

2:39:39Q I talk with them again this is talk I dropped to my video

2:39:46but I called back in I'm on the phone now so sorry about that.

2:39:50I don't know where it's north though or more

2:39:53on the slide overview of local government

2:39:55of insolvency analysis and the proportional measures Rosarito

2:39:58Mr. Mayor do you have a page number there in front of you

2:40:00is ninety five.

2:40:05I'm on mute so I'm off mute it's ninety four of ninety seven

2:40:12by default Lincoln to everything.

2:40:17Yeah.

2:40:18It's ninety four ninety five that that area

2:40:21that area for the first one is is you

2:40:25know we've talked with your finance director and City

2:40:27Manager about this things that it's so important to update

2:40:31the city's existing cash model.

2:40:34You know to evaluate life as normal but more importantly

2:40:40life under covered 19 and what could happen in

2:40:43from the mid April timeframe through the next six 12 months

2:40:48in terms of your cash flow.

2:40:50The second and again your finance director is already

2:40:53taking steps to do this is checking the availability

2:40:55of short borrowing such things as a tax revenue anticipation

2:40:59of Rand and that's going to have to be done in the next few

2:41:02weeks or so to really make sure you have the cash flow that you

2:41:06need to be able to get through what's going to become the dry

2:41:10months through the summer because your next huge wave

2:41:15of cash revenues that come in will really be in December when

2:41:18you get that first wave of property taxes spur to the 20

2:41:2121 fiscal year and then the third

2:41:24area is really to determine that the city does have the

2:41:28cash to meet the obligations for the next 18 months.

2:41:32And this really is the key point because if you have

2:41:36your efficient cash to meet your obligations

2:41:39you don't need to implement a big five or six.

2:41:41You don't need to go down the road to identifying what steps

2:41:45you need to take in terms of an ultimately

2:41:48but it's going to be really critical for the city

2:41:50to start taking some steps now to to avoid that.

2:41:54Mr. Mayor.

2:41:55So this is a cash flow loan.

2:41:57We're talking about it's cash flow is really insolvency

2:42:02really relate to cash flow.

2:42:05But Steve's question is about the loan on

2:42:10and I was troubled by our debt we do reduction of our ratings

2:42:15won't it be harder to get it were there would be it could

2:42:21end up adversely affecting your credit rating definitely

2:42:25if you were solvency right.

2:42:28No I think this is about the ability to get the loan

2:42:30and if there if there are concerns today given the credit

2:42:34rating what we know is that your finance director and City

2:42:37Manager are working with local bank currently

2:42:40and so you should know you should have an answer don't

2:42:42care maybe you want to speak to this also mark but there This

2:42:47is something that they are recapping and pursuing

2:42:52and should know I believe within the next several weeks

2:42:56Is that accurate.

2:42:58Yes that's correct.

2:42:59We are currently exploring that right now

2:43:00as you said and we should know hopefully

2:43:03within the next weeks.

2:43:04Yes.

2:43:05So then you can then you can determine those next steps

2:43:08actions if that comes through.

2:43:09That addresses the immediacy of the cash

2:43:11flow concerns and safeguards.

2:43:15Need to look at this as an option and that's the goal.

2:43:19There's are our initial assessment

2:43:22and what a note of caution because if the trend doesn't

2:43:26come through that's a different ballgame

2:43:28but I see that I go down.

2:43:31But it's to me that it is significant We don't get it

2:43:35then we have some other issues to deal

2:43:37with that's exactly right.

2:43:39And it's a whole new conversation to be had for now

2:43:43that the city is pursuing that and then pending

2:43:46the notification of what that word will look like with what

2:43:50the loan will look like they'll be better positioned to make

2:43:54some choices and decisions.

2:43:56But all of this cash flow and we're

2:43:59going to come back to this and we're

2:44:00going to hit it Hello yes.

2:44:08I'm back on.

2:44:09I'm back on the video now.

2:44:11Thank you folks.

2:44:12Yeah.

2:44:13Great thanks.

2:44:16Before before you Marty before you go on I

2:44:18want to make sure that council member came to you.

2:44:22Do you still have your hand up.

2:44:24Gabe thank you.

2:44:26I appreciate it.

2:44:28You mentioned outsourcing.

2:44:32And have you looked closely into that

2:44:38have have you done an analysis on outsourcing

2:44:44if we need to do that.

2:44:46We have not been engaged to do a deep dive into

2:44:48your Q4 feasibility plan until.

2:44:51No we have not done any type of depth of analysis

2:44:54in terms about working service or any of those other types

2:44:58of remedies.

2:45:01However what I would say is that is something that in working

2:45:04with us first actions that we have absolutely looked

2:45:07at on a whole host of occasions can

2:45:10in in the spirit of a whole portfolio of options in that

2:45:15in the strategic plan how do we go back in time recovered

2:45:18covered that the set goals and strategies we were going

2:45:22to bring before you to consider the very first goal

2:45:26was to secure the financial help I'm reading it from the draft

2:45:29strategic plan we would have been presenting this to secure

2:45:31the financial health and long term sustainability of the city

2:45:34strategy one was to adopt and implement a

2:45:37financial sustainability plan.

2:45:38So even pre covered our recommendation

2:45:41was to invest the time and energy to do these analysis got

2:45:55I saw I I saw there.

2:45:57There you go the screen So we were

2:46:00we were going to be proposing and recommending based

2:46:03on the the work we did and the strategic plan that this should

2:46:07be a priority we are now as I said earlier

2:46:11my comments underscoring and the sizing

2:46:13and holding this as as the top priority

2:46:17given everything that we know about certain specific

2:46:21financial environment Any other questions from Tulsa lovers

2:46:27at this time.

2:46:35Okay.

2:46:36Well maybe we could hand it over then Steve to Karen

2:46:41Do I do a quick wrap up on the conclusion

2:46:42and then really we wanted to spend some time.

2:46:47And Karen has worked closely with her department head team

2:46:51to come up at the council's direction

2:46:54with some with 2 million dollars worth of reductions

2:46:58and what those might look like and I think

2:46:59she's prepared to provide some insight

2:47:01you probably have it as a part packet

2:47:04so to talk to talk a little bit touch on that

2:47:07but really the what we'd like to be able to circle

2:47:10back on are the action items coming out of this.

2:47:14What is that the council see as priority in preparing

2:47:18for next steps and for the budget

2:47:20so Karen do you want to join step Yes I would like to OK.

2:47:29Can everyone hear me.

2:47:31Yes Yes I can see you too.

2:47:33OK yes.

2:47:34I've had to rebooted at least twice.

2:47:36So now I'm on a new device so though just go back

2:47:42over one of the previous slides just

2:47:45to discuss again the immediate actions

2:47:47that city staff has taken in response to this emergency.

2:47:51So we.

2:47:52That includes an unpaid furlough of ninety nine

2:47:56zero part time staff members.

2:47:59I've already directed a reduction

2:48:02in discretionary benefits for management

2:48:04staff including car allowances.

2:48:08I have implemented a freeze on hiring.

2:48:11I have implemented a freeze on non-essential spending.

2:48:14I've implemented a freeze on any through the end

2:48:18of the fiscal year any non-essential travel training

2:48:23All of those types of against discretionary spending

2:48:28will be looking at a lot of some.

2:48:30We've already looked at a lot of what Steve had described

2:48:34but going forward we will have to look

2:48:37at that which I'll get look at more

2:48:39which I'll get to in a second.

2:48:41So tonight what we had meant to do

2:48:43was prepare we had prepared for you overall 5 percent reduction

2:48:48for the 20 21 and twenty one twenty biennial budget.

2:48:52You'll recall that when you all discussed this in February

2:48:55you gave us a projected.

2:48:57But we gave you a projected budget and you asked us

2:49:00for 2 million dollars in reductions

2:49:01from that projected budget.

2:49:04The amended general fund budget around forty

2:49:07point five million dollars the reduction target was

2:49:10just over 2 million dollars.

2:49:13So I worked with each department director

2:49:15over the past month and a half to identify reductions

2:49:19through a combination of steps which

2:49:21is outlined for you in attachment 1 attachment 8

2:49:25which was in your pocket.

2:49:28It's a combination in positions reducing programs and contracts

2:49:32and shifting costs special funds that would amount to about

2:49:35a one point six million dollars worth of savings

2:49:38and just cost reductions alone.

2:49:42The overall reduction for 2 million dollars

2:49:44also assumes that all employees will forgo OK

2:49:54that that employees will forego their cost

2:49:57of living adjustments for twenty twenty one.

2:50:00So as previously referenced staff

2:50:03is negotiating with all bargaining units

2:50:05to achieve this we are optimists think that all of them

2:50:10will will help us do that currently.

2:50:14And again we're still in negotiations

2:50:16This will be brought more to your attention

2:50:18at the next council meeting but currently

2:50:20we're anticipating four hundred thousand dollars

2:50:24in that that savings would result in about four hundred

2:50:28thousand dollars.

2:50:28That includes the management group

2:50:30which I'll get to in a second.

2:50:32And if all of the bargaining units

2:50:35agree and comply all employees agree

2:50:37and comply that's over seven hundred fifty

2:50:39thousand dollars in savings so with the anticipated savings

2:50:43that we believe we have right now with in negotiations

2:50:47the overall reduction is is two point

2:50:50zero three million dollars.

2:50:52If that additional 300 plus thousand comes online that

2:50:56would be an additional three hundred thousand

2:50:58dollars in reductions.

2:51:00So just to go over their proposed reductions

2:51:03just as you can ask questions in some of these in a general

2:51:07but in a general sense one of the biggest things

2:51:11you'll notice is holding open vacant positions

2:51:13which could of course lead to eliminating

2:51:14those vacant positions.

2:51:17Some of the vacancies I just want to point out

2:51:19in the police department for example

2:51:20have been carried for quite some time.

2:51:22But recruitment has continued during that time.

2:51:26These positions as proposed however would stay vacant.

2:51:29They would not be they would not be filled for this fiscal year

2:51:32not have the opportunity to file for this fiscal year.

2:51:36That also includes eliminating a school resource officer

2:51:39as you know the school district has already

2:51:41let us snow that they're going to reduce to 1 to essentially

2:51:46paying for Well we won't even it won't even fill one position

2:51:49but they are going to reduce to pay only one

2:51:51hundred fifty thousand dollars.

2:51:53Again that we're aware of at this point.

2:51:56It includes suspending and reducing various programs.

2:51:59And again this is what we have worked on to date including

2:52:04the traffic neighborhood management program which

2:52:06is where currently where people can request traffic studies

2:52:09or traffic calming devices in their neighborhood

2:52:12the new street light program where residents can request

2:52:15new street lights the street banner program to pay

2:52:19for installation those throughout the year

2:52:21that we would suspend that for the time being

2:52:24or or longer in order to try to reduce costs for that We would

2:52:31also reduce the number of public workshops

2:52:33events and classes particularly those that require overtime.

2:52:37As you know we redo one of the things

2:52:40that I believe is star quality of life

2:52:42is that we are able to particularly have police

2:52:47officers or firefighters especially firefighters on duty

2:52:49to be able to help provide some of these programs.

2:52:53We would be reducing those Yes Your Honor

2:52:58I think I heard Janet did you want

2:53:00to say something at this time.

2:53:02Oh I'm sorry.

2:53:03That was the background things that I did have a question

2:53:07about when you said something and something

2:53:11about firefighters reducing what I did.

2:53:14I was just interrupted.

2:53:16Mariam we would we would reduce those programs or events where

2:53:21we have firefighters that are on duty that would lead

2:53:24to overtime an example like a certain training

2:53:30for example the cert program.

2:53:32Now we've already needed to cancel.

2:53:35OK.

2:53:361 cert program because of the emergency wherein we would

2:53:40we would reduce the amount of programs that we offer or or I

2:53:46guess what I wasn't aware of.

2:53:47And it may just be my lack of knowledge is we actually

2:53:51if some if somebody let's say somebody is assigned to do cert

2:53:56then they actually do that on overtime.

2:54:00It can lead to overtime because we do have special events.

2:54:05I don't know if the chief looking

2:54:10to see if that she begonias on this

2:54:14that he could explain here.

2:54:16All right.

2:54:17Would you like to answer that question.

2:54:19Okay.

2:54:20If I understood the question it was

2:54:24extra programs that were you that we utilized

2:54:27overtime for the firefighters.

2:54:30Yeah they're working.

2:54:31OK.

2:54:33And what would be an example of something like this

2:54:36when I was kind of wondering.

2:54:37Well a lot of are a lot of our cert classes

2:54:40and we utilize overtime to prevent taking our engine

2:54:43companies out of service to certain classes that require

2:54:47you know one or two people meal for three and four

2:54:50hours to put on the classes if we're using on duty people that

2:54:55takes an engine company out of service which then in the past

2:55:00you know we always try to avoid that so that we did what what's

2:55:04being proposed here which would be to eliminate that overtime

2:55:09then would we eliminate that activity or would

2:55:14we close the fire station.

2:55:17What are what are we doing.

2:55:18Well we are actually doing what we are proposing right now

2:55:22is that we would reduce that activity or it

2:55:26and or we would also try to transfer that to volunteers

2:55:30or staff that would not be paid overtime hard

2:55:34to do those activities.

2:55:36So that's mean I know there used to be a volunteer

2:55:41Grant Kafka All right did it.

2:55:47I think as I understand anyway so we would

2:55:51go back more to the volunteer model

2:55:53for some of those activities if they are to remain at all.

2:55:57That's what we're.

2:55:58Yes that's what we're like right now.

2:55:59Because the idea is to reduce staff overtime

2:56:02absolutely no continuing.

2:56:08Some of the description of the reductions

2:56:12in various categories of expenditures

2:56:15professional services.

2:56:17We've talked about this in the past

2:56:19but we do have as we have a small staff we do often rely

2:56:23on consultants to provide expertise

2:56:25in various area of the city.

2:56:27We do employ a lot of generalists here at the city

2:56:30so it's something very specific.

2:56:32For example a public works construction contract

2:56:35or something that you know our staff would benefit

2:56:39from the additional expertise we do rely on that we would reduce

2:56:43the amount of consulting contracts this year

2:56:45which means that we might have to look at the programs we're

2:56:49offering and look at the projects

2:56:50we're doing in order to make sure

2:56:52that we're able to use in-house staff for what services

2:56:56that we're in projects we're working on this year travel

2:57:00and training it would only be essential training

2:57:03as required either by law or as required

2:57:06by license or credential.

2:57:08We are looking a lot at local trainings not out of town

2:57:12trainings or state trainings people would be asked

2:57:16to pay their own way if that was something

2:57:18that they wanted to explore.

2:57:21It would not be paid for by the city events and field trips.

2:57:24This is an odd line item in the budget.

2:57:27We don't do a lot of field trips that's actually

2:57:29what we what that line item has housed

2:57:32is the budgets mostly the budgets for not only

2:57:36just events that the departments put on but also the budgets

2:57:40for all of our boards commissions and committees are

2:57:42housed in that line item.

2:57:45And so we are in this in this in this proposed reduction chart

2:57:50we are showing significant reduced budgets for boards

2:57:53commissions and committees which again we can reduce even

2:57:57further if necessary which it will be necessary public

2:58:01information we are we we we are proud of what we've been able

2:58:06to do in the past providing particularly printed materials

2:58:10we will be reducing that significantly including

2:58:12our city newsletter and any of the other printed materials

2:58:18that we are looking at because postage and and and designers

2:58:23for the newsletter all of that would be reduced significantly

2:58:27and then supplies equipments and vehicles we have assessed

2:58:29and we'll continue to assess the purchasing

2:58:33and put off everything that

2:58:34is a major purchase that we can for as long as we can.

2:58:38Again the budget assumed what we have tried to do

2:58:41is to assume you know looking at when our vehicles come come

2:58:46online or the necessity to read to buy them cycles

2:58:49that they were police vehicles or fire

2:58:51vehicles for public works vehicles for example.

2:58:54We do that on a rolling basis.

2:58:56But at this point we are putting off a lot of that.

2:58:59We've also talked about capital projects

2:59:01we've talked about that earlier we are putting off anything

2:59:04that would impact our cash flow a lot of that is grant funded

2:59:08but it does it does require an outflow of cash

2:59:12that we get reimbursed for.

2:59:13So we need to be very conscious of when we're spending

2:59:16that money where we're spending that money so that we can get

2:59:19reimbursed either very quickly or that we plan those projects

2:59:23so that we don't have to worry about our cash flow

2:59:26or we just put off projects completely

2:59:30Those are all being addressed as well.

2:59:33And then.

2:59:35Yes.

2:59:36No I just said OK OK.

2:59:39So then The other thing that this also assumes and again we

2:59:42can go further in this and we'll be looking

2:59:45at that for the next steps.

2:59:47But in this particular exercise what

2:59:49we looked at is our eligible costs that we could move

2:59:52to Measure H which was approved last year as you

2:59:55recall Measure H was expanded in scope

2:59:57from the original measure a.

2:59:59So that it could be used for anything within the park

3:00:02and rec master plan as adopted.

3:00:05And so expenditures related to park maintenance landscaping

3:00:09to vegetation vegetation management particularly

3:00:11emails a natural area as well can be moved to Measure H.

3:00:15And so Measure H is about six hundred

3:00:19fifty thousand dollars a year.

3:00:20So we haven't fully pulled over seven hundred fifty thousand

3:00:24dollars worth of expenses at this time within this chart

3:00:28but that is also something that we can look

3:00:30at for the next year or two.

3:00:33Knowing that we would not be looking to bond against Measure

3:00:36anytime soon because of our current financial situation.

3:00:39So I do want to note that this is just one side of the story.

3:00:43We have touched on this a little bit before.

3:00:45This one side of the story is just in reductions only we are

3:00:49looking at revenues we will be.

3:00:51And as Steve referenced this we actually are already analyzing

3:00:54our masterpiece schedule we are looking

3:00:56at all of the additional fees that we can charge

3:01:00and it has been brought up before about the ambulance fees

3:01:03and then when fees we are indeed looking at that we are looking

3:01:09at those types of revenues that would

3:01:11not require any sort of election I think for obvious reasons.

3:01:17But that's that's something that we are exploring currently

3:01:20as well and that we do have staff tasked to to continue

3:01:24to work to make sure they're bringing that to me

3:01:28so that we have a better a little bit more

3:01:30of a balanced picture.

3:01:31So again in light of the current fiscal situation

3:01:35and in light of covered nineteen I

3:01:37was you know I was heartened by the recovered 19 chart that

3:01:45showed that the two million dollars would have

3:01:47made a significant difference.

3:01:50But we're in a different world now

3:01:51and so we recognize that this is not enough.

3:01:55We will have to mitigate the revenue shortfalls for Cove

3:01:58at 19 and instead of tonight discussing the pros and cons

3:02:02of what I presented to you we're now essentially presenting

3:02:06to those as our new baseline we don't really have

3:02:10a choice anymore in those reserve reductions

3:02:14and In fact we need to go further

3:02:16and we need to discuss those further for tonight.

3:02:20You know we can get back to having

3:02:21a bit more of a conversation but as I indicated to you before

3:02:25as I indicated in the agenda Bill

3:02:28what I do now now that I have staff looking at this

3:02:31the original part of the exercise

3:02:33was to look at a 5 percent reduction

3:02:35and to look at a very high level.

3:02:39I've been calling it a scorched earth reduction

3:02:42and that is actually now the all the spreadsheets

3:02:46that we're now currently looking at

3:02:47and that's including eliminating those vacant positions

3:02:51for good reducing.

3:02:53I will say it and I will recommend it reducing the hours

3:02:57to the library for library services

3:02:59as much as kills me to say that as much

3:03:03of an advocate as I am for the library That's

3:03:07a significant amount of money and soup services

3:03:10do need to be reduced everywhere.

3:03:14Cancellation of the library we're paying for.

3:03:22We aren't typically required to pay but we've chosen to pay

3:03:27and we're continuing to look at that.

3:03:30The reason I brought that up because that was in discussion

3:03:33and will be a significant discussion

3:03:35with the City Council I'm just giving you

3:03:37all a bit of a spoiler alert.

3:03:40At my recommendation you to not to cut

3:03:44those hours until we can get better not call them not at

3:03:48them was my phone.

3:03:53Look I couldn't hear you.

3:03:55I will.

3:03:56I am going to the council to consider

3:03:59cutting the library hours.

3:04:02Okay.

3:04:04Cancellation of major city events.

3:04:06This was also a discussion.

3:04:10I I have.

3:04:12You have given me the authority through the local emergency

3:04:16to cancel events and programs per the county health order.

3:04:21We do not know how long that's going to last

3:04:23and we also don't know that even if we are able to recover

3:04:28by the summertime.

3:04:29If we would be able to recover being able to get ready

3:04:33for some significant events I think

3:04:35you know I'm talking about July 4th I've

3:04:38had extensive conversations with staff.

3:04:40I've talked to Chris.

3:04:42We have several concerns.

3:04:43The biggest one being that at this point

3:04:47we would not be able to get certainly the sponsorships

3:04:50that the council was asking us to try to look at.

3:04:53We would not be able to plan very well

3:04:55we don't know that vendors are even going to agree

3:04:58to be able to work with us.

3:05:00And frankly even if this is you know a little bit

3:05:04you know hopefully where we're able to leave

3:05:07our houses by July.

3:05:08But at that point do we still want

3:05:10to be responsible for an event where hundreds if not thousands

3:05:14of people are in very close contact with one

3:05:17another so soon after all of this.

3:05:19And so again while I have had the authority to cancel events

3:05:23due to the local emergency I am also recommending to you

3:05:26tonight that we cancel July 4th and we make that public Other

3:05:31things that staff is looking at and we are indeed we are we can

3:05:35explore this further using even management partners as they

3:05:40work with several other cities to do exactly to exact to do

3:05:45exactly this would be to restructure city operations

3:05:48including look at things looking at things that we might be able

3:05:51to contract out restructuring perhaps recreation programs

3:05:56as we have talked about that before and just

3:05:58so you know I know that Chris is indeed

3:06:00working on diligently on a

3:06:04re engagement plan for the summer

3:06:06should the summer happen.

3:06:09And additionally you know the the the word that none of us

3:06:13really want to use but that would be to reduce layoffs

3:06:20of staff and management and staff positions Layoffs are

3:06:25a very complicated matter in all of our bargaining agreements

3:06:29and in our civil service rules they

3:06:31are written that way in order to indeed be a last resort.

3:06:35There are bumping rights there are seniority rights.

3:06:38There are a lot of of of of process

3:06:42that we have to go through in order to discuss layoffs.

3:06:45But I think as you know nothing is off the table at this point

3:06:48but we are actively looking at what all of that means.

3:06:54Additionally as far as management is concerned

3:06:56I think I talked about this earlier.

3:06:59I will be working with human resources

3:07:02right now to prepare for you.

3:07:04The resolution for management and confidential staff

3:07:08the current resolution it will expires

3:07:11at the end of the fiscal year.

3:07:12I have already talked to the management staff

3:07:15so they are aware that my recommendation

3:07:19or this resolution will come to you will be

3:07:22for no increases in salary there would be

3:07:26no cost of living adjustments.

3:07:28It would include additional cutting

3:07:30of discretionary benefits including the Car Allowance.

3:07:33It would include us looking at health benefits

3:07:36and capping fees capping fees and looking

3:07:40at an additional cost sharing with if that's possible

3:07:45once our once our health benefits come online which is

3:07:49not till the end of the year.

3:07:51And I will.

3:07:52I will be requiring an additional payment

3:07:55to retirement benefits Currently there is you know

3:07:59there are two 2 calculations.

3:08:02There are the employer contribution

3:08:04and the employee contribution.

3:08:06The employees have been paying their full share

3:08:08of this contribution for quite some time in our public safety

3:08:12bargaining units.

3:08:13They have additionally been paying more into above

3:08:17and beyond the employee contribution

3:08:18into the employer contribution miscellaneous staff has not

3:08:22done that at this time and that is what

3:08:25I will be looking at having the management

3:08:28and confidential staff do.

3:08:30We could Additionally look at that further

3:08:32with all miscellaneous staff but that

3:08:34is again subject to negotiation with bargaining units.

3:08:38So I can't make that assumption but at this time

3:08:42there's no bargaining unit for management and confidential.

3:08:44So that is designated by City Council resolution.

3:08:49I have again told them this I don't

3:08:50know if they'll develop the bargaining unit in response

3:08:53to this.

3:08:54But at this time that is they they've

3:08:57been they're aware of that and that is what at the minimum

3:09:01we will be providing you in a resolution

3:09:03for the next fiscal year.

3:09:07So at this point I can certainly take questions

3:09:11on anything specific but I think that at this time having

3:09:15management partners here to help lead

3:09:18the rest of the conversation as to what the City Council is

3:09:22interested in having us come back at the next council

3:09:25meeting to discuss we know that you all of this

3:09:29expected to continue to review the current and upcoming

3:09:33process.

3:09:34There that we have had as as extending the budget process

3:09:41perhaps what the city of San Francisco is doing some of you

3:09:46may know is that they are going to look at passing a continuing

3:09:50resolution so that once this is over

3:09:52and revenues have a better we have a better understanding

3:09:56of where revenue loss will actually be than we can make

3:09:59better adjustments to our budget later

3:10:02on in the summer that doesn't mean

3:10:03we're not gonna have a budget.

3:10:04It means that we would reduce the budget

3:10:06to love to at least these levels if the 2 million

3:10:10dollar level and more for July 1st

3:10:13and then we can reassess at the end of the summer

3:10:15and do a full budget process with the budget

3:10:17book and all of those things.

3:10:19So if that would be the something

3:10:23that the council would like to provide direction

3:10:24to staff to to work on that.

3:10:26Again this is such a fluid process.

3:10:29This is by all means the hardest thing to try to contemplate.

3:10:36This is just obviously we were in financial challenges

3:10:39before that is that is clear.

3:10:41I have brought that out as much as as I can But this everything

3:10:48is changing and so it's a fluid situation

3:10:51and we are just trying to react as best we can.

3:10:55With what comes before us.

3:10:57So at that point I can stop talking and thinking.

3:11:02So I do have both personnel your hand was

3:11:07up first and then Gabe your hand and then

3:11:10I'll go to Janet and Paul.

3:11:12So some questions for Karen or management partners

3:11:16at this time.

3:11:17Rochelle Hi Karen.

3:11:21My first question is where I guess my my main question is

3:11:27when you're looking at the chart that people can see at home

3:11:34the general fund reductions by department

3:11:37the middle line fiscal year 2019 to 20 under budget

3:11:43some of the spaces have been left blank.

3:11:46For example the police personnel which shows

3:11:49some of our biggest reductions.

3:11:51Can you explain why that was left blank.

3:11:54Yes I'm sorry I had to do that thank

3:11:56for reminding me in that chart.

3:11:59What the majority of the vast majority of all

3:12:02of the reductions in there were assigned from a certain account

3:12:06code line item and so for the police departments reductions

3:12:11those that all of those numbers includes several different line

3:12:16items I had left that I had left those the account

3:12:21code blank to try to avoid confusion because there were so

3:12:25many account codes that that total added up

3:12:27to so Unfortunately I may have caused more confusion

3:12:30by seeming it to show that there was no budget for it

3:12:33before That is not true.

3:12:35Those numbers in the proposed reduction column are

3:12:39includes salary and all benefits though it

3:12:42is a total of several different account codes

3:12:45that I left blank.

3:12:46So I hope so.

3:12:48I apologize for trying to avoid confusion

3:12:50but creating any more confusion Thank you.

3:12:55Don't go to Mr. Kendall I wanted to discuss with Karen

3:13:10and regarding service reductions and looking what in future

3:13:23dealing with outsourcing and outsourcing departments

3:13:29one department that many cities have outsourced the cities

3:13:37of Fremont the city of San Francisco

3:13:42has outsourced senior service And they hired nurses

3:13:48and Professional Geriatric the people

3:13:53with degrees dealing with that and sites want to make sure

3:13:57that we look at everything including that

3:14:01And another thing I wanted to make sure

3:14:04that we look at dealing with outsourcing

3:14:08is you know the hillside.

3:14:12For example we can barely keep up

3:14:15with what we have now in dealing with vegetation management.

3:14:23I am hoping that we can look at the possibility of having East

3:14:28Bay Regional Parks look at that and see if they would like

3:14:32to take that over it will still be

3:14:35part of the city of also Rita.

3:14:37But looking at the maintenance and what needs to be done

3:14:41we don't have the money and our people are our residents.

3:14:46The nails are asking month after month e-mail after e-mail.

3:14:50When is this going to happen.

3:14:52And we don't have the funds to make it happen so I suggest

3:14:55that we look out to outsourcing and outsourcing the hillside

3:15:00area so I'm hoping that my colleagues

3:15:04will agree with me on this just to see is this worth doing.

3:15:08But I know it will save a lot of money

3:15:11over time for our firefighters and for personnel.

3:15:15Thank and thank you.

3:15:19Council member Abe Wilson here is

3:15:22your phone stable at this time.

3:15:24We were breaking up before.

3:15:26Let me.

3:15:29Yeah.

3:15:29Your your phone is breaking up.

3:15:32And so my advice to me Greg.

3:15:36Yes.

3:15:37Yes Janet okay.

3:15:39I dunno what to do about it if it's breaking Yeah.

3:15:43Do you want to try from a different phone

3:15:47Do you have another phone in the house.

3:15:50Well I can't seem to get through.

3:15:53Yeah I find I'm just trying to reconnect.

3:15:57I can hear her just coming in here.

3:16:00I can hear her.

3:16:02Okay.

3:16:02All right.

3:16:03I'm having difficulty so maybe it's my land.

3:16:06Yeah.

3:16:08The the.

3:16:11I feel like what I want to say is

3:16:13more of a comment and a question but I

3:16:15think it's really important in this area

3:16:17and no one has in that has to do with the impact of the virus

3:16:25problem on people's behavior.

3:16:31And I mean people's behavior.

3:16:33People in society not like individually one person does

3:16:38say one patient there's that but what I'm beginning to observe

3:16:43is that people are starting to behave

3:16:47in a pattern that's very different than they've

3:16:52ever behaved before.

3:16:55And certainly in my time anywhere and it

3:16:59may impact all of the things that we do.

3:17:03And so I think that's going to interact with all of the budget

3:17:08planning we're talking about and I'm

3:17:11concerned that it may be you know an

3:17:15and it may have a negative financial impact on us.

3:17:20For purposes of this conversation.

3:17:23So I want to make sure that as we talk about things that we

3:17:28eyes in the back of our minds say but maybe

3:17:31people aren't going to go back to behaving

3:17:34the way they used to.

3:17:35That they're going to behave in a new pattern.

3:17:38And so I just wanted to put that on the table

3:17:42because I'm really concerned about it.

3:17:45And just because they you know went swimming classes

3:17:52before maybe they won't want the kids to go to swimming classes

3:17:58now because they're afraid they'll

3:17:59get the virus even though the virus is kind of going

3:18:03away for the time being.

3:18:06And anyway I just wanted to say that because I

3:18:09think it will have an impact on a lot of things.

3:18:13That's right.

3:18:13Thank you councilwoman.

3:18:16Still any questions.

3:18:20Yes.

3:18:21Can you hear me.

3:18:22Yes yes.

3:18:23Thank you.

3:18:25OK.

3:18:25Karen and Nancy maybe both of Karen

3:18:27I'm glad you keep your list was very comprehensive.

3:18:32I'm glad you said all of the things

3:18:33that you said because that those are some of the listed things

3:18:37I and we had mentioned previously.

3:18:41I wanted to just reiterate or go through again

3:18:45the process going forward and our staff

3:18:48coming up with alternatives.

3:18:50While there may be or an audit ending and we

3:18:54proceed in full throttle.

3:18:57And then as you say we visit again in September because I'd

3:19:02like to not wait for that It may have

3:19:06on overtime or other issues to other questions and so I can.

3:19:12I did reach out to the state auditors office

3:19:15and unfortunately which is not at all surprised they've

3:19:19let me know that they just don't they they don't

3:19:21have a timetable right now for when

3:19:23they're going to come to us.

3:19:25I offered.

3:19:26Is there a way to do any part of this electronically

3:19:29or digitally and they just really weren't able to provide

3:19:32me with an answer and I'm I'm not surprised this is

3:19:34everything is just really on hold

3:19:37I'm sure the state has a lot going on as well so.

3:19:40So we really don't know.

3:19:43My take is that I would like to continue

3:19:46to move forward and perhaps then the auditor when they

3:19:50come in they can grade us on what we on the work

3:19:54we've done so far.

3:19:55Right.

3:19:56Are is addressing all of the matters

3:19:58that they've discussed if they're if we haven't then then

3:20:02they can assist us with that all of the things that have been

3:20:06brought up are certainly most of it again

3:20:09is was not a surprise to us.

3:20:11And so you know as we are taking these steps

3:20:15you know to help in that in that way

3:20:20if they were able to provide that for us.

3:20:22But again I I certainly don't want what

3:20:26we obviously can't wait to cut.

3:20:28We can't wait to work out what our budget will look

3:20:31like but I'm hoping that by the time

3:20:33the state auditor is able to come to us that they can can

3:20:35they can be helpful for us when they're able to.

3:20:40I think that's good.

3:20:42I don't think we should be waiting

3:20:43for them to get their report.

3:20:45They need to move especially with the epidemic that's making

3:20:48us need to move faster Secondly I

3:20:52had a concern when I looked at the cuts I didn't know it

3:20:55all the more.

3:20:56Some of them were generic from community development

3:20:59that we just don't have any economic development

3:21:03efforts proactively to seek revenues in this city.

3:21:07I see that as a real problem that we have going forward

3:21:11is that we don't have a real generator of potential revenue.

3:21:14And I'm hoping when we do get a budget that that may be the one

3:21:18place we can have some cost to so

3:21:22that we can seek revenue makers or seek

3:21:25opportunities to make revenue.

3:21:28I'm open to discussions on this but I just

3:21:30think where we're cut cut cutting we need to be doing

3:21:34going on the other side of the ledger

3:21:36as well I don't know if you have any comments on that.

3:21:40And I and I hear you and I think one of the things

3:21:43we have been lacking particularly

3:21:45staff wise is anyone dedicated to our

3:21:52We have had actually that position open for quite

3:21:56some time and I'm certainly not seeking to add anyone

3:22:00as you have heard me say.

3:22:01We have a hiring freeze right now.

3:22:03And I don't anticipate that anywhere for the near future

3:22:07which is unfortunate and we have as you know a very small

3:22:12staff to be able to do that.

3:22:14So and if we're going to have an even smaller staff again

3:22:19some of these things are going to have to either be repurposed

3:22:22or restructured or we would have to look at additional avenues

3:22:28perhaps consultants that people hate.

3:22:32Sorry Nancy and Steve but the idea

3:22:34of having to hire consultants.

3:22:35But you know again kind of what comes into it was discussing

3:22:40earlier when it comes to contracting

3:22:43when it comes to hiring consultants to do this work.

3:22:46I just want make sure that you know what may part time FDLE

3:22:49said is true there are costs involved

3:22:52in that and the outsourcing or hiring consultants.

3:22:57And you know without having staff to do it

3:23:00the work still has to get done.

3:23:02And so it's not necessarily a cost savings.

3:23:05It's not necessarily something that can bring in revenue

3:23:08is obviously something you would have to do the cost benefit

3:23:11analysis or but some of the work still

3:23:15has to be able to get done for example

3:23:17if I were to outsource our administrative services.

3:23:19I still have to pay payroll.

3:23:21I still have to do human resources.

3:23:23I still have to issue permits.

3:23:26There might not be a short term savings

3:23:28by contracting out or hiring a consultant

3:23:30to do some of that work.

3:23:31But the long term savings would then be in our purse costs

3:23:34for example or our benefit costs.

3:23:36So again as we're looking to do either consulting hiring

3:23:40consultants or hiring staff or outsourcing work all of that

3:23:44is what we're doing right now which

3:23:46is the cost benefit analysis board will

3:23:49it get us revenue that is.

3:23:50That is absolutely something to consider as well as what

3:23:54will save us down the line.

3:23:55And so again that's economic pressure.

3:23:59Are you saying you're not going to recommend that

3:24:01but that could be a direction that council takes

3:24:04when we deal with the budget.

3:24:05Right.

3:24:06If we do want to have economic development effort in our city

3:24:11when we're real quick this is Nancy one thing to kind of keep

3:24:15in mind too is there's that urgency

3:24:16in the near term and the strategy

3:24:18is that you're going to want to analyze and evaluate

3:24:21or impact in the near term.

3:24:23And then there are those options as strategies

3:24:26that have a longer horizon I think currencies.

3:24:27But you were alluding to as well as some some those things you

3:24:32might have to put a stall on now where you kind of stabilize

3:24:35and make sure that you're in a stable position financially

3:24:40but then taking a longer view.

3:24:42You don't lose sight of you because that's that's fair

3:24:45and you should be.

3:24:47But keeping in mind the kind of the urgency of the day as well.

3:24:51Yeah.

3:24:52A quick final question Greg is it

3:24:56for if we're gonna be absent our big advance especially July

3:25:00Fourth Karen is there any role for the arts budget

3:25:04that can be used.

3:25:05It's not a show.

3:25:06It's not a small amount of money but are there

3:25:08artistic endeavors we could use in that direction

3:25:13for the July 4th festival or the money

3:25:16in the arts commission budget.

3:25:19If we're not going to do well if we're not going like we're

3:25:22not going to do July Fourth.

3:25:24Are there ways to think that budgets up

3:25:26to close to two hundred thousand dollars or something.

3:25:30Yes.

3:25:31The Public Art Fund as you know is

3:25:34was created through arts Public Places program

3:25:36in order to provide all sorts different kinds of public art

3:25:41to the city not just you know structure or sculptures

3:25:45but programs as well and as you know

3:25:47that was a discussion with the Arts and Culture Commission

3:25:50to provide public art funding to July 4th.

3:25:52At this point what I would like to do

3:25:54is take a look at the ordinance to see if there are

3:25:59if there are programs that we could then

3:26:00shift to the Public Art Fund.

3:26:02The issue with the public fund as you know

3:26:04is is there maybe a sizable balance there now

3:26:06but that is literally one time money that will be depleted.

3:26:10So we just have to make that we are

3:26:12very very cautious about that.

3:26:13Unlike Measure H moving some expenses to Measure

3:26:16H which is every Are we able to get that public art.

3:26:20This is our time of need.

3:26:22This is our time of need.

3:26:23So thank you.

3:26:25Thank you.

3:26:25At an all special as well.

3:26:28At this time I'd like to go to public comment

3:26:31we'll come back to council.

3:26:33But I'd like to go to public comment

3:26:34so that we can get the public comment in for 10 30

3:26:38and then we can consider or extending our meeting.

3:26:44So city clerk are you able to.

3:26:52Yes without echo okay.

3:26:55I apologize for the technical difficulty earlier.

3:26:58So I am going to pull up our information here.

3:27:02So the first thing I want to do is

3:27:05share again the comments that were received by 12:00

3:27:07today were posted on the city website

3:27:10as supplemental material and provided directly to the city

3:27:13council members comments for this agenda item

3:27:15were received by the following individuals

3:27:17listed on the screen.

3:27:19This includes Michael Fisher L. Miller wrote

3:27:22Sam Daniel Schulman Marlene George

3:27:26Susan Duncan and Paul Duncan.

3:27:29So those are all available to the public on our website

3:27:32and have been provided to you in addition

3:27:34to those we did receive additional five submissions

3:27:38for public comment which With your permission there

3:27:41I will proceed with the three minute time limit

3:27:43for the yes please Perfect.

3:27:51We will start with the first submission

3:27:53from Mike Cunningham in three minutes starting 30 now.

3:28:03It is surprising how little pain seems

3:28:05to be required for the city to cut 2 million from its budget.

3:28:09One wonders why the city did not pursue such belt tightening

3:28:12immediately upon the state auditors warning

3:28:15or during the three years of growing concern warning

3:28:19or during the 10 years in which the city repeatedly felt

3:28:22necessary and appropriate to ask residents to dig

3:28:25into their pockets to support the city

3:28:27with for new general fun taxes because city leaders failed

3:28:32to competently and responsibly manage

3:28:34the budget over many years and failed to build and maintain

3:28:38even a modest preserve.

3:28:39The cuts ahead of us will require

3:28:41pain keep in mind residents are already burying their share

3:28:45of pain thanks to those for new taxes Eldorado residents now

3:28:50shoulder the highest local tax rate in the entire state

3:28:53of California.

3:28:55As things for residents generosity the city spend

3:28:58freely to the brink of insolvency

3:29:00while providing residents with general fund services that are

3:29:03average at best only our library hours festivals and Senior

3:29:08Services rise above the minimum level of

3:29:11must do activities of the city This time

3:29:15the city needs to look inward first

3:29:17before cutting services to residents

3:29:19or raising taxes yet again.

3:29:21Start by rolling back senior management salaries that have

3:29:24grown without regard to the city's broken and disregarded

3:29:28median compensation policy and that in any case the city

3:29:32cannot afford to pay eliminate overtime pay for FLSA exempt

3:29:37managers reduce the fire departments and reimburse

3:29:41overtime over reliance on uniformed personnel for non

3:29:45response activity and top heavy staffing eliminate contracting

3:29:50for all professional services that can be performed by staff

3:29:54reduce the cost of providing Senior Services which preserve

3:29:58while preserving their most important function and once

3:30:02passed past the immediate crisis plan to fully restructure fire

3:30:06safety negotiate sustainable pension and undertake

3:30:10economic development efforts.

3:30:13It's the city's habit to blame others

3:30:15for its fiscal difficulties.

3:30:17But if the city had been willing to maintain a budget

3:30:19without structural imbalances and with even a modest 10

3:30:22percent reserve it would not be facing

3:30:25immediate financial catastrophe from Corona virus

3:30:28or from any recession.

3:30:30That's the whole point of a reserve

3:30:32and it's why the state auditor raised the red flag

3:30:34that the city tried so hard to wave away make sure by the way

3:30:39to discuss tonight whether this city will be able to secure

3:30:42a new cash flow loan in July.

3:30:44And what are the city's options and plans if it cannot and asks

3:30:49Rick from above for median compensation policy fail

3:30:52Alfredo has not done a comparison with other city 2014

3:30:57and even then it appears that it used the median as the top

3:31:00of the ranges as comparison cities to set the middle

3:31:04of three those ranges which would automatic make

3:31:07Alfredo's salaries substantially higher than comparison city

3:31:11that was submitted by Mike Cunningham Alfredo resident

3:31:17and I will continue on to the next submission

3:31:20which is from this business and I will

3:31:24be in her three minutes now.

3:31:28There is no question that Elsa Rita

3:31:29is in dire financial straits despite the blood.

3:31:32Attitude of the city's financial finance director

3:31:36the persistent non non mention of the issue

3:31:39by the city manager and the host of residents

3:31:41and council members alike.

3:31:43The state auditor our independent

3:31:45auditor and Standard and Poor's analysis cannot all be wrong.

3:31:49We are in trouble and let us not pretend otherwise In my opinion

3:31:53top city staff has been grossly incompetent in handling City

3:31:56Finance finances and is advising and informing the city council

3:32:01but council members did not question things making you

3:32:04a betters in the Berkshire because you in effect

3:32:07allowed and are still allowing staff to continue the flimflam.

3:32:12However we now rely on you not on the staff

3:32:15that forwarded the machine machine and nation

3:32:18to lead us out this mess.

3:32:21You already know all the numbers and actions that

3:32:24contributed to our situation.

3:32:26If you don't know these numbers you are not paying attention

3:32:29because we residents have found and posted

3:32:31every detail something staff should have done for you.

3:32:35A few residents know this information

3:32:37but most do not because they have not been overtly

3:32:40informed about this situation and little surveys

3:32:43about desired improvements or a narrowly advertised Town

3:32:46Hall will not do We don't have a newspaper that

3:32:50reports anything that might disturb Eldorado staff

3:32:53and or council.

3:32:54We have no way to get the word out

3:32:57to the bulk of city residents.

3:32:59The city is in trouble and most of the residents

3:33:01have no idea I suspect the City Council could float a ballot

3:33:05measure for a new library right now

3:33:07and most residents would naively vote

3:33:09yes This all needs to stop you.

3:33:13Our city council needs to step up.

3:33:15We need serious cuts to salaries and personnel.

3:33:18For starters I have tenants who are working full time from home

3:33:22while their salaries have been cut in half.

3:33:25What about our staff.

3:33:27Are any of them feeling that same pain Finally

3:33:30we need the entire city to know what is going on.

3:33:33Remember the consultants and all the glossy mailings

3:33:37used for every new tack or for library bond.

3:33:41You didn't fool around then when you wanted

3:33:43people to know certain things.

3:33:45We need some truth here and some get

3:33:48It is time that all our city council members

3:33:51step up something that our staff does not

3:33:53being able or willing to do.

3:33:55Yeah that was submitted by B.J..

3:33:57Myself to read about that continuing on

3:34:05to the next mission which is committed by Kathy Handel Rita

3:34:10resident and starting her three minutes now First I want

3:34:16it read into the public record that we are at the point

3:34:19financial devastation due to major incompetence by staff

3:34:22allowed by the City Council Fab has

3:34:25been pushing for increased reserves

3:34:26for at least several years.

3:34:29Instead big raises were given to staff employees

3:34:31and nothing was put into reserve and we

3:34:33ended last year with a deficit.

3:34:36And while these current cuts are a good start

3:34:38they should have been done in October after the state auditor

3:34:41raised the alarm instead of listening to the red flags made

3:34:45by the state auditor staff and council

3:34:48have resisted making any but the most minimal and cuts.

3:34:51And now you are getting a set produced

3:34:54by expensive consultants saying L3 don't need to act now

3:34:59and that a recession is coming in the next three years

3:35:02and bringing up the idea of bankruptcy right now.

3:35:05We must address making cuts to see if that can be avoided.

3:35:09But a very serious look at the incompetent

3:35:12and lack of action that brought us here needs to happen at the.

3:35:17How can we trust the people who brought

3:35:19us to the current brink of bankruptcy

3:35:21to save us from the same.

3:35:23While these cuts make us start more substantial cuts

3:35:28need need to be made.

3:35:31My suggestion rollback wages to 2016 This then in itself

3:35:36could solve most of our problem.

3:35:38Cut the fourth of July for 2020 and use that sixty thousand

3:35:42to keep the library open the additional hours the Fourth

3:35:45of July will now be a health and safety

3:35:47issues to the question of me.

3:35:50This package shows many reasons why

3:35:52the additional library hours are needed and end

3:35:55up with unemployment soaring.

3:35:57There will be even more need.

3:36:00Reduce the use of all consultants

3:36:02unless there is a council decision that they are needed

3:36:05address the growth in inefficiency of the fire

3:36:08department looking at overtime costs versus staffing

3:36:12charging for EMT and the structure of the department

3:36:15along with the Kensington contract contract.

3:36:19There is no reason that the department cannot keep

3:36:22us fire safe within the budget.

3:36:25They have all travel and training

3:36:27must be cut unless specifically approved by council.

3:36:30These are a few suggestions I hope you will

3:36:32quickly can make the necessary.

3:36:36Thank you and that concludes this submission.

3:36:42The next is submitted by Sherry.

3:36:44ROVNER also re read thanks guarding her three minutes.

3:36:47Now your mayor.

3:36:50City council members and city manager

3:36:52the 5 percent target for budget reductions

3:36:55is no longer a baseline.

3:36:56If we address the loss of revenue to our city

3:36:59due to the pandemic I would hope that the city's finance