Regular City Council Meeting June 2, 2020

0:15:54All right.

0:15:55I'm just looking for my script now.

0:15:57One found it.

0:16:31All right All right.

0:16:51It is 7 0 1 this.

0:16:56This is the June second regular meeting

0:16:58of the LS Reno city council.

0:17:01Time to call the come to order.

0:17:02It's 7 0 1 will please call the roll.

0:17:06Me and my man present may potentially as a council member

0:17:12Wilson cancel my evil sending you are muted

0:17:24go to my Mabel saying present you can some member

0:17:29party with Moto council member keen to resign we have

0:17:34a quorum excellent at this time we will move to item one

0:17:41which is teleconference and public comment instructions

0:17:45Thank you Mayor.

0:17:47City council members and staff that

0:17:48are participating directly through

0:17:50the teleconferencing platform.

0:17:51Please remember to keep your microphones muted whenever you

0:17:54are not speaking any webcams that are enabled

0:17:57will be visible on the public livestream for direct chat

0:18:01to the host for technical issues.

0:18:02The chat feature has been disabled if you wish to speak.

0:18:06Please use the raised hand feature.

0:18:08Raise your hand on your camera to let the mayor know you wish

0:18:10to speak for those calling in the phone

0:18:13you will not have these features available to you

0:18:15but can verbally request the mayor for permission

0:18:17to speak for members of the public participating from home.

0:18:21The period for submitting public comments

0:18:23will remain open until announced prior to the City Council

0:18:26taking action on an applicable item

0:18:29submitted comments will be read into the record.

0:18:31Comments will be heard during agenda item 3 or communications

0:18:35from the public.

0:18:37All other apologies items not on the agenda.

0:18:40Comments on consent calendar and presentation items

0:18:43will be heard during agenda item 3.

0:18:45All other comments will be heard at the time

0:18:47the agenda item is discussed.

0:18:50Comments can be submitted one of two ways via email

0:18:53to city clerk at C I got e o dash

0:18:57so Rito got C a dot U S or by voicemail 2 5 1

0:19:020 3 0 6 2 5 5 8.

0:19:06When submitting comments please be sure

0:19:08they are identified in the subject line

0:19:10or stated in the voicemail as public comments

0:19:12not on the agenda.

0:19:14Republic comments followed by the agenda item number please

0:19:17include your name and city of residence

0:19:19For the record please note that all information provided

0:19:22in public comments including phone number called with email

0:19:25addresses and any other personal information written or stated

0:19:29is subject to disclosure on the broadcast

0:19:31of the teleconference.

0:19:32Meeting following the meeting all comments read

0:19:35into the record will be posted online

0:19:37with supplemental materials and will have

0:19:39personal information redacted.

0:19:40This concludes my instructions.

0:19:42Mayor Lyman we're ready to move on to the next item.

0:19:46Group that concludes.

0:19:48Item number one which was teleconference and public

0:19:51comment instructions we'll now move on to item two which

0:19:54is council staff communications Karen is there

0:19:58any communications from staff.

0:20:01Yes there is.

0:20:02Thank you Your Honor.

0:20:03I'd like to begin.

0:20:05First of all I do want to note that today

0:20:09the county released a revised health

0:20:10order which begins tomorrow.

0:20:13The order allows indoor retail shopping business offices

0:20:16outdoor museums and pet grooming under sort

0:20:19of under certain conditions.

0:20:21It also allows all outdoor social gatherings

0:20:24as well as childcare and camps for all children.

0:20:27Libraries will be able to reopen curbside pickup

0:20:30and religious services can't resume on June

0:20:3315th with some limitations.

0:20:37The county will update us soon on reopening

0:20:39swimming pools and outdoor dining

0:20:41which I know will be very popular.

0:20:43Karen BRITO So we're updating our site our social media

0:20:47to reflect this new information these continue to check our Web

0:20:50site at Elle Besh Speedo dot org slash bid

0:20:5419 for details and links to.

0:20:57As you pointed out that this time nothing

0:20:59will change at City Hall.

0:21:00As I've indicated before and my city manager updates which I'm

0:21:03still putting out weekly we're working

0:21:06on plans to reopen spaces at this time

0:21:09our buildings are still closed.

0:21:10Still providing services reappointment though and most

0:21:14staff are still working remotely.

0:21:15So once again I would like to ask

0:21:17the public's patient securely with our building

0:21:19and planning divisions.

0:21:21They because of the construction that

0:21:23was halted for a couple of months

0:21:27We are working off a big backlog and we

0:21:29are implementing furloughs now And so we really are.

0:21:33We would ask that you be patient with us please expect delays.

0:21:36But we are going to try to get to all of you

0:21:38as soon as we can.

0:21:41We do want to make sure that when we do fully open all

0:21:43of our buildings were thoroughly prepared and ready to ensure

0:21:46the highest level of safety we can

0:21:48provide to not just our employees

0:21:50but to the public in general.

0:21:51So please state checking our website.

0:21:54I also shared that today Contra Costa County has enacted

0:21:57a curfew from 8:00 p.m. to 5:00 a.m.

0:22:00throughout the entire county both

0:22:01incorporated and unincorporated and this

0:22:04is until further notice.

0:22:05So I'm sure you've all been watching the news on the events

0:22:08that have been happening over the past couple days

0:22:10so I'm just very hopeful that everyone stays safe.

0:22:14In the midst of our worry about the health pandemic and making

0:22:18sure that we continue to deliver services and face

0:22:21our economic challenges I feel like we're now faced

0:22:24with our biggest challenge.

0:22:27Video showing the final moments of George Floyd's life

0:22:30has caused us all deep pain and sadness.

0:22:32And I want to acknowledge that and recognize

0:22:35that for all of us the subsequent protests that

0:22:38are happening right now in communities across the nation

0:22:42are a reckoning.

0:22:43It makes clear all of the work we still

0:22:46have to do to address racial ethnic and gender

0:22:48bias in our society my job focuses on building

0:22:53trust and creating an environment where

0:22:55residents feel safe and our employees feel safe.

0:22:58I'm responsible for establishing standards and selecting

0:23:01professionals to lead our departments

0:23:03and provide our services so I have

0:23:05an opportunity and a responsibility

0:23:07to advance equity and inclusion We all have a responsibility

0:23:11though to dismantle systemic racism and claim

0:23:14that black lives matter because racism is learned and built

0:23:19it can be unlearned and torn down.

0:23:21It won't be easy and it requires white people

0:23:24acknowledging our privilege and doing the work

0:23:27to challenge racism whenever we see it

0:23:30and to always seek racial justice.

0:23:33We must in short become comfortable

0:23:35being uncomfortable until we dismantle racism.

0:23:41It's a hard ask but we all have to do the work our city

0:23:45organization is imperfect of course

0:23:47but we do have a lot to be proud of and to build on.

0:23:51I certainly don't have all the answers

0:23:52but I'm willing to make sure that I'm

0:23:54asking the right questions.

0:23:56I'm committed to commit to continuous improvement

0:23:58in all areas of my life.

0:24:00But certainly in this Rita organization

0:24:03I commit to improving how I work and how I learn again to ensure

0:24:07that we're dismantling racism and to be

0:24:09intentional in our actions As a resident

0:24:13I'm proud to be a part of this.

0:24:14Serino community we've come together in bad times

0:24:18like into 2016 when a hate crime happened here

0:24:21and we all came together to work to stop hate.

0:24:24We come together in good times like now

0:24:26as we're celebrating pride which by the way

0:24:29started as a riot and Loving Day which by the way started

0:24:32as a crime but we've turned both of those into a month

0:24:36where we celebrate marriage equality racial equality

0:24:39and human equality recognizing Love is love

0:24:41and that we are all welcome here.

0:24:43So once again let us all come together

0:24:45as neighbors to take care of each other

0:24:47to stand united against hate.

0:24:51I'd like to ask Chief Paul Keith to say a few words about four

0:24:54I do.

0:24:55I wanted to express how proud I am

0:24:57of the men and women of the El Cerrito police department.

0:25:00I believe we are a good example of how policing

0:25:02can be done and done well.

0:25:04We work to protect and serve with the values

0:25:06of dignity and respect.

0:25:09Again no organization is perfect.

0:25:11We have all a lot to learn but I've

0:25:13seen the work our team does and continues to do

0:25:16and I hope that other police departments

0:25:18can look to us as a model and that our residents

0:25:21can be proud.

0:25:23So I'd like to ask Chief Cates to say a few any mayor

0:25:31and council Paul Keith your chief of police.

0:25:34Thank you for the opportunity to make some comments

0:25:36about the State of the city of Rosarito and Rio

0:25:38through the police department.

0:25:40To start with.

0:25:41I'm asking all community members to abide by the curfew set

0:25:43in place by the supervisors of Contra

0:25:45Costa County and El Serino and in our neighboring communities.

0:25:48We've seen instances of targeted looting vandalism.

0:25:52The last two nights I've deployed a substantial number

0:25:54of uniformed officers looting all department administrators

0:25:58to deter theft and vandalism.

0:26:00We're working hard to make certain

0:26:01that the jobs and businesses that our community depends on

0:26:03remain open.

0:26:05As a reminder tonight the curfew begins at 8:00 p.m.

0:26:08It ends at 5:00 a.m.

0:26:10I authored a letter last week expressing my outrage

0:26:13at the shameful criminal behavior displayed

0:26:15by officers in Minneapolis.

0:26:17I received messages asking that I speak directly

0:26:19on the topic of systemic racism as a law enforcement officer I

0:26:23swear pulled the Constitution dedicate

0:26:25my life to living by the law enforcement code of ethics.

0:26:28I swear to protect and preserve the constitutional rights

0:26:31of all liberty equality and justice it's clear

0:26:34that black Americans suffer disparate outcomes compared

0:26:37to other racial groups as unacceptable to me

0:26:40and it should be unacceptable to all CPD frequently

0:26:44reviews are policing practices on the lookout

0:26:47for disparate outcomes.

0:26:48We make changes when we find problems.

0:26:51This may mean as examples changing how and why we stop

0:26:54vehicles modifying how we respond to calls for service

0:26:58or investigating and disciplining

0:26:59officers in the event of race baiting misconduct.

0:27:03I do not tolerate racist behavior in the police

0:27:04department and I do not tolerate it when I come

0:27:07across to my personal life.

0:27:09The lives of black people matter and I see it

0:27:12as my responsibility to continue to cultivate a policing culture

0:27:15and also credo it encourages officers

0:27:17to question their biases and assumptions

0:27:19and take a hard look at our policing practices impact

0:27:22our communities of color.

0:27:24Our officers are socially conscious men

0:27:26and women were hired from our local communities.

0:27:29They are people of high character

0:27:30who likewise dedicated themselves

0:27:32to a career of service to the Constitution to our community.

0:27:36They are an impressive and courageous group of people.

0:27:39My fellow Elsa regions in West County neighbors

0:27:41please stay safe tonight and take care of one another

0:27:44thank you for your time.

0:27:50Great thank you any other staff announcements ching.

0:27:55Now I'll come to council.

0:27:58Certainly I can start off and echo the words that were just

0:28:02said the events over the last week plus

0:28:08require remarks as we've seen.

0:28:10I'm especially disgusted by the senseless and horrifying death

0:28:14of George Floyd.

0:28:15Racism is fear and hatred.

0:28:19We have no room for racism in El Cerrito thanks

0:28:22and appreciation go out to you chief

0:28:24and your officers who share our reaction to this unjust death.

0:28:31Who are actively planning ways to prevent this.

0:28:34In Osorio we all regardless of our race or ethnicity

0:28:41have a response to the ability to actively fight

0:28:44racism We need to consciously work to eradicate our bias

0:28:50and fear and move towards love peace

0:28:54an active inclusive behavior.

0:28:58Thank you looking down at the council members

0:29:05Janet and then Paul and Ryan.

0:29:10Yes OK.

0:29:11I want to share with what is just share what that I agree

0:29:16with what has been said and then I am totally

0:29:20appalled about the situation.

0:29:24I see our world in today.

0:29:29This world this year has gone from bad to horrible to worse.

0:29:39And it's it.

0:29:42It feels almost as though can it get any worse

0:29:46and I think it's up to us to make sure

0:29:49that that doesn't happen we as a society

0:29:52all need to work together so that the things

0:29:55that we just talked about particularly the things

0:29:58that Chief Keith just talked about the good things

0:30:03that the good things happen and that the bad things don't

0:30:07happen.

0:30:08And in that sense we're all responsible each and every one

0:30:13of us.

0:30:14It's not their problem it's not their fault

0:30:18it's all of our joint responsibility

0:30:22and so I think we really have to work together.

0:30:27In the best way that we can to see that

0:30:31these things that are wrong stop.

0:30:34We need to.

0:30:35For one thing we need to identify.

0:30:37We need to spend some time actually identifying

0:30:40what are we talking Because I think that one

0:30:44of the things that I see is that not

0:30:47everybody thinks there's a problem when

0:30:49in fact there is a problem.

0:30:53And I it's just a very very sad time.

0:31:01And my heart goes out to the family of George Lloyd

0:31:07and the others who lost their lives

0:31:11and I hope that we as it as a local jurisdiction

0:31:18will work together to make sure that that's not what's happened

0:31:23here that we provide answers that

0:31:26are positive and good in a lot of good people

0:31:28here in this area.

0:31:30I think that we need to work together in a better way

0:31:34to make sure that all all of the members of our community

0:31:40are treated equally as they should be

0:31:43and that this never happens here or again.

0:31:48Thank you I and I just want to thank the chief and the city

0:31:59manager for poetic words and the letter the chief wrote

0:32:03was really a wonderful piece that makes me proud to work

0:32:06for you guys and I'm sorry.

0:32:11I have to admit I was I was ill and almost nauseous all day.

0:32:17Because we're living in a time of great stress and turmoil

0:32:21as Janet has said.

0:32:22We have the horrific pandemic worldwide

0:32:26which has laid bare the great inequities in our own country.

0:32:30We have the worst economic events since the Depression

0:32:34a horrific incident Mr. Floyd in Minneapolis which has triggered

0:32:39violence throughout the city and then maybe

0:32:42in throughout the country and maybe

0:32:45worst of all a horrific and despicable president

0:32:48who stoked the fires of racial political distress

0:32:52and fear for his own political gain.

0:32:54Last night's event at St. John's church

0:32:56was just beyond belief and also violence

0:32:59star cities and small businesses really very depressed.

0:33:07I can remember in 1968 when I was a senior graduating

0:33:10from Kennedy High here in Richmond when Martin Luther

0:33:13King was killed in the violence occurring in across the nation

0:33:19was likewise disturbing justifiable maybe disturbing

0:33:24understandable as maybe a better word not justifiable

0:33:28but it helped elect Richard Nixon

0:33:30President of the United States.

0:33:32And I don't want to go down that path again I

0:33:36moved to D.C. in 1974 and six or seven years later the city was

0:33:41still in disarray from the violence

0:33:43and the fires that occurred on H Street and throughout the city.

0:33:48So as we approach Loving Day and we raise the gay flag

0:33:53above our city hall I really want

0:33:55to remind all of us about what we can do here

0:33:58and that's to work locally to pull together as Janet

0:34:01and and the other subset to resolve the help the economic

0:34:07and the racial cracks that can so easily be

0:34:10ripped open by others.

0:34:13We can do that.

0:34:16We have much to do and I feel good about being

0:34:19here to help do that.

0:34:20Thank you Gabe Thank you Mayor.

0:34:29I want everyone to know that I very much appreciate

0:34:35our chief Paul Keith and our city manager

0:34:38Ken Pinkus what they said.

0:34:41I echo their statements and the statements of from Janet

0:34:45and from Paul FDLE and I wanted folks

0:34:50to know that I lived in Los Angeles during the L.A. riots

0:34:55and and I thought that after all these years

0:35:00we've worked through all of this And to see the violence

0:35:06and the the death of George Floyd in Minneapolis

0:35:14we have a lot of work to do.

0:35:16But I want folks to know that we can do this on the local level

0:35:22and we can do this in El Serino and with our commissioners

0:35:27and with my colleagues.

0:35:29We have made the city has made me very proud of how much we

0:35:36have gone to make this city the best

0:35:39that it can be with Loving Day with raising the LGBT flag

0:35:46as your first out LGBT council member I

0:35:50can't tell you how very proud I was to see also back in 2013.

0:35:57And many of you were there to see that flag.

0:36:00I was the first in the City of Heroes contract County.

0:36:05And to see all cities in Contra Costa County following our lead

0:36:09I can't tell you how proud I am to be in El Serino

0:36:12rounds of Atlanta Contra Costa so I

0:36:15know that what we do on the local level is so important

0:36:20and I know that it makes a difference

0:36:23and just know that as someone who grew up here

0:36:28and it was all my neighbors who lived

0:36:31in Lexington Avenue the most diverse straight back

0:36:35then and living on con land Avenue here where we have one

0:36:38of the most diverse streets of so many families

0:36:43and and different nationalities.

0:36:46Also Vito has always been the melting pot.

0:36:48No sir there has always been a city that has welcomed me

0:36:53and it will continue to do so to welcome everyone here

0:36:57so again thank you to our residents

0:37:00and thank you to my colleagues Rochelle

0:37:08I'd also like to thank everyone for their comments

0:37:13I can tell that everyone's comments are

0:37:14heartfelt and very personal.

0:37:17I appreciate that.

0:37:21I prepared some comments as well.

0:37:27George Foy say his name is a man that should be alive.

0:37:35He is a man that will never be forgotten.

0:37:39His death has affected each and every one of us.

0:37:46Racism ever quietly simmering in America

0:37:51has boiled over once again I find myself with a thousand

0:37:58thoughts and yet I lack words to adequately adequately describe

0:38:05this moment where my emotions I see

0:38:10the images of a black man dying under the knee of a white man

0:38:15over and over again.

0:38:20And what it does to me personally

0:38:22is it makes me fear for my children

0:38:26It makes me wonder if something like that could happen to them.

0:38:32Just because they look like me losing a child

0:38:38is every parent's worst fear.

0:38:41The fear is so terrible that we don't even

0:38:44want to speak in fear that it might come true.

0:38:49But we must we must talk about this

0:38:51now because if we don't it will it

0:38:54will come true again and again.

0:38:56If not for me but for someone else this has to stop

0:39:03and it has to stop now.

0:39:10I felt rather melancholy over the weekend.

0:39:12I feel you council member fidelity

0:39:17but today I am hopeful.

0:39:20Not everyone will change.

0:39:23Not everything will change suddenly

0:39:26but I do feel a shift one white friend contacted me

0:39:33and said you know it's really unfair

0:39:36that you have to worry about yourself

0:39:38and your kids this way.

0:39:40This shouldn't be happening.

0:39:43She never reached to me in quite that way

0:39:45before another white friend of mine

0:39:48contacted me and said anything I can do for you.

0:39:54Kind of struck me like well what would you do for me.

0:39:58As I thought about it I thought you know just speak up whenever

0:40:04you get the chance not because I'm there

0:40:08or some other black person is there

0:40:11but just if you know something is wrong just speak up

0:40:15because I really do believe like a quote

0:40:20I heard it from if racism were up to black people

0:40:24be over already our white allies to stand up for us to say

0:40:31that this is not right and to make changes

0:40:35and then I ask them to also check his own biases

0:40:38because we all have them.

0:40:41What is it that we can do personally

0:40:43to change our thoughts or feelings about other people

0:40:52What else can we do.

0:40:54I support peaceful protest.

0:40:57I am an activist that became a council member.

0:41:01I believe that taking to the streets

0:41:03definitely has its time and place.

0:41:06But I do not believe in looting and I

0:41:08do not believe in violence.

0:41:10So if you must go out and protest protest peacefully

0:41:16and as a nurse I've got to say I don't

0:41:18recommend it at this time.

0:41:20We still have a pandemic going on

0:41:22and I don't want you to end up in the hospital.

0:41:26We will take care of you but nothing has changed.

0:41:29If we get overloaded people will die.

0:41:36This is a time or a lot of people are angry at the police.

0:41:42I am angry with some police officers

0:41:44to the officers that killed George.

0:41:48Floyd should be brought to justice

0:41:54Well let's not generalize now all police

0:41:57officers are bad people.

0:42:01As a result result of George Floyd dying

0:42:04there are now officers out in the street

0:42:07every night doing twelve hour 16 hour shifts

0:42:11or longer being away from their families being pushed

0:42:15to the brink to stay sane.

0:42:18I know I've done 16 hour shifts just at the hospital.

0:42:21I can't imagine people out in the street yelling

0:42:25at me throwing things at me and in my face

0:42:28and me having to stay calm as well

0:42:31as protecting our businesses.

0:42:34This time once again I believe that we should have protest

0:42:40but I don't believe in the violence.

0:42:46It is never good to generalize because that

0:42:51is the root of racism.

0:42:53Saying that black people were the same.

0:42:55Saying that all white for the same thing

0:42:58that all police officers are the same.

0:43:01We're not all the same.

0:43:03We should all be judged on our own actions.

0:43:08That being said I promise to hold our police

0:43:12officers accountable.

0:43:15I want to hire to hold them to the highest standard possible

0:43:22because it's good of a job.

0:43:24I think a lot of our police officers are doing right now.

0:43:27There's always room for improvement

0:43:29when we need to explore that together as a community.

0:43:33I'm here to listen to the suggestions that you have

0:43:37and to work with our police chief and our police officers

0:43:40to make sure we do the best job possible for all people in Rito

0:43:44and the surrounding area I believe that together we

0:43:49can change the system.

0:43:54This is a moment for change A few years ago I introduced

0:44:01the idea of Loving Day.

0:44:03It was my idea of what I felt like I could do to promote

0:44:09change to help stop racism even though it

0:44:13was just a small thing.

0:44:16It an acknowledgement of people that had fought racism

0:44:20so many years ago I am half black and I am half white

0:44:26and I accept both of those identities fully

0:44:30and the idea of the kind Loving Day

0:44:34is that people would come together Loving Day celebrates

0:44:39La Loving versus Virginia where two people a black man

0:44:44and I'm sorry a white man and a black woman

0:44:48were able to marry legally and now we celebrate that

0:44:53and Elsa Rito is a way to celebrate

0:44:57human equality marriage equality and racial equality later on.

0:45:03Hopefully we will be passing our resolution this year

0:45:05in honor of Loving Day finally.

0:45:11I'd like to say one of the reasons

0:45:13why I have so much hope I wasn't really sure how

0:45:20to in my little talk because like I said

0:45:22I have a thousand thoughts.

0:45:24I only touched on maybe three or four

0:45:28But as we were talking about this event tonight

0:45:32my son Kai had this to say why is 10 years He said I

0:45:40like being mixed because I can bring

0:45:42people together and stand up for all of them Thank you guys.

0:45:56Thank you Michel With other announcements

0:46:01I just want to remind people that recycling

0:46:03center is open for business.

0:46:06Please be sure to participate in the census

0:46:10and obviously stay home because the curfew.

0:46:15So with that I will conclude.

0:46:19Item 2.

0:46:20Council and staff communications will move on to item 3

0:46:25communications from the public.

0:46:27I know we received a few communications earlier today.

0:46:30Can you please bring those up so that we can see the comments

0:46:34that came earlier today.

0:46:39Certainly.

0:46:40So by 12:00 p.m. deadline today for public comment

0:46:44we had received comments not on the agenda from Rachel Stark

0:46:48Sue and Paul Duncan and those in addition to other item

0:46:54further into the agenda.

0:46:55We have provided all of those directly to the council members

0:46:58in advance of the meeting and these are posted online

0:47:01as supplemental materials.

0:47:03And at this time for agenda item 3

0:47:06we have additional seven public comments that were submitted

0:47:10for items not on the agenda.

0:47:12Mr. LYMAN Can you confirm the time limit.

0:47:14You would like for each speaker.

0:47:17Yeah let's do two and a half minutes please.

0:47:21Okay.

0:47:24I will begin going through those comments now.

0:47:29So we will start the first speakers

0:47:31at starting their time now.

0:47:34Do mayor and also veto City Council

0:47:36as you know during a financial crisis

0:47:39if it responsible management tightens

0:47:42its belt during the last recession in 2008.

0:47:45Elsa Rideau did not.

0:47:46And it progressively list its reserves funds

0:47:49and became quite deficit in unfunded pension liabilities

0:47:53and being in the red for the past two years

0:47:55and most certainly for this fiscal year as well that

0:47:59pattern led to Elsa Ruto being found by the California state

0:48:02auditor as the seventh most financially at risk

0:48:06city in the entire state out of four hundred

0:48:08and seventy two other cities in the October 2019 report

0:48:13yet El Serino did nothing to rectify

0:48:14this situation until the shelter in place order

0:48:17because of not having funds.

0:48:19Also Rito has neglected services in areas and areas too many

0:48:23to list here Disaster Services curb repair curb tres cleanup

0:48:27of garbage street street repair the cert program

0:48:30social services and others have all been neglected.

0:48:34The pat answer is we do not have funds

0:48:36for that Masons suggest some positive ways to rectify

0:48:40our financial crisis.

0:48:421 First recognize that Rito is in a financial crisis

0:48:46to acknowledge that it it it was in a financial crisis

0:48:49even before the as IP 3 acknowledged

0:48:53that the financial crisis was due to a lack of oversight

0:48:57for come up with an efficient plan

0:48:59to rectify the chronic overoptimism

0:49:01or neglect of the above.

0:49:03As you know San Francisco has already

0:49:05begun austerity measures despite it having huge surplus

0:49:09and reserves before the.

0:49:11The SIPC those reserves were depleted by providing

0:49:14services for their citizens.

0:49:16They have already implemented a temporary hiring freeze

0:49:19the elimination of all raises and the elimination

0:49:22of many staff positions that non-essential It should

0:49:25be easier for a small city like Eldorado

0:49:28to at least do the same.

0:49:31I urge you to acknowledge that past budget assumptions

0:49:34the past few years did not come in anywhere close

0:49:36to the actual revenue minus expenditures at the end

0:49:39of the year after analysis.

0:49:41I would say that the budget proposal for 20 to 1

0:49:44is quite unrealistic.

0:49:46I paid managerial positions in all departments must be cut.

0:49:50Then finally we will see a balanced budget

0:49:52at the end of the year not another shortfall.

0:49:55Surgical costs are needed not a 10 percent cut

0:49:57across the board that requires some research.

0:50:01Secondly please look at the Three Hundred dollar a month

0:50:03car allowance for twenty five employees

0:50:07that concludes this time for this first speaker.

0:50:10Moving on to our second speaker nerdy in time

0:50:16was the speaker so I apologize that was admitted by Donald

0:50:22Simon ulcerative resident.

0:50:24Thank you.

0:50:25Council member FDLE the next speaker

0:50:28Simitian is from Irish air now starting his time now.

0:50:32I believe that the city council needs to hold a virtual town

0:50:34hall by the end of next week.

0:50:36What was the bidding process used

0:50:38to hire all the various financial consultants.

0:50:41After years of warning finally in November 2018

0:50:44the independent auditor issued his going concern statement

0:50:47at a public council meeting.

0:50:49One might have thought that those Sarita would have

0:50:51tightened its belt not so the new transparent California

0:50:55data is out and it appears it appears as though the city

0:50:58went on major spending spree.

0:51:00The top two employees received significant increases

0:51:03in total compensation here in total compensation

0:51:06went up forty nine thousand three hundred eighteen dollars

0:51:09and fifteen cents marks total compensation went up

0:51:12by nineteen thousand and sixty seven

0:51:14dollars and seventy five cents.

0:51:16Looking at the cash flow data associated with the proposed

0:51:19payday loan indicates that personnel costs will

0:51:21not be going down anytime soon.

0:51:24Submitted by Irish share now elsewhere

0:51:26resident next speaker is This is committed by Kathy

0:51:34Kennedy illustrated resident.

0:51:36I just wanted to take a moment to ask the city council take

0:51:39some time to acknowledge the protests going on right now

0:51:42I would love if you would have a moment of silence

0:51:45and also make a proclamation supporting the Black

0:51:48Lives Matter movement.

0:51:49I very much appreciate chief Keith's

0:51:52letter to the public last week.

0:51:54I think it was a good first step and I do believe Chief

0:51:56Keith has good intentions.

0:51:58I would hope that the council could encourage the team

0:52:00to continue to look at issues of racial disparities in arrests

0:52:04and make sure that his officers are trained well and fully

0:52:07in de-escalation tactics and implicit bias I know that she

0:52:12gives you a thorough report annually

0:52:15and I would ask these aspects be added to his report.

0:52:18I think the public needs to know and understand how these issues

0:52:21are addressed in our community.

0:52:23I know many think that because we live in this liberal bubble

0:52:26there are not racial issues and that is not at all true.

0:52:29I know that there is a peaceful and social distant protest

0:52:32planned for Thursday at five thirty

0:52:34including a car only version.

0:52:36I hope some of the council members can attend.

0:52:38Thank you.

0:52:39Hashtag blessed.

0:52:40Black lives matter.

0:52:41Submitted by Kathy and Bill Elsa Reno

0:52:43resident Comments received from Doug Woodville

0:52:52starting his time now.

0:52:54My name is Doug Woodville and I've been an LCD

0:52:56a resident for almost 10 years.

0:52:58On May 30th I wrote the city council member city manager

0:53:02and police chief asking for the city

0:53:04to make a statement in support of ending institutional racism

0:53:07and to provide guidance on how else to Guido

0:53:09residents can take action.

0:53:11I've not received a response and stand by my initial statement

0:53:15asking for the support.

0:53:16I do realize that the chief of police

0:53:18provided a statement in regard to the murder of George Floyd.

0:53:22However I think it failed to address the underlying causes.

0:53:25As I look at the Reno PD website on training outlines

0:53:29and materials there are many PD s

0:53:31that include course objectives procedures safety guidelines

0:53:34etc.

0:53:35But when I click the link for the discriminatory harassment

0:53:38section it is it has none of that.

0:53:41It simply has a scanned one page document

0:53:43attached with no outlines no procedures and no objectives.

0:53:48Let's start here Elsa Rito Where is

0:53:50the training for our officers and what does it can stuff stop

0:53:53the document attached is here any next comments

0:54:08were submitted by Elizabeth Thorson starting her time now.

0:54:12Do that Elsa Reno city council and the City Council that

0:54:15else reads city manager first.

0:54:17I understand that this topic and that might not seem important

0:54:19given all that is going on in the world at the moment

0:54:22but the topic is virtually never mentioned by anyone in the city

0:54:25and happened to be mentioned in the city manager's May

0:54:2821st update and second all numbers upon which calculations

0:54:32in this email are based are from the city exact sources

0:54:35are available upon request.

0:54:37I am totally discouraged by the city

0:54:39managers May 21st update on the city's rent registry program.

0:54:43This program requires owners of residential rental property

0:54:46to report specific data such as rents and evictions

0:54:49during the annual business license renewal process.

0:54:53It was established to collect data to inform the city council

0:54:56about the rental market trends and housing stock landlords

0:54:59were required to pay forty four dollars per unit

0:55:01for the first of the program nearly a year ago about nine

0:55:05hundred and fifty rental housing owners representing

0:55:09about twenty eight hundred rental housing

0:55:11units submitted rental submitted rent registry forms.

0:55:15According to the city manager's update only about sixty

0:55:17five percent of these forms have been

0:55:19processed to date either six hundred

0:55:21eighteen owners or 18 20 units.

0:55:24It isn't clear which if it is units.

0:55:27This means that about 10 units each day of an 18 day month

0:55:31for processed over 10 months.

0:55:33This is an ex unacceptably slow and I believe

0:55:36that the reason the process has been slow

0:55:38is unnecessarily complex design forms which do not

0:55:42lend themselves readily to data collection

0:55:44even if they are submitted digitally while the city

0:55:47manager said staff is exploring ways to streamline

0:55:50the next reporting period.

0:55:52I have to wonder why we should have a staff why we

0:55:55should have a staff that already missed

0:55:56badly trying to redo the form.

0:55:59Why not hire a consultant trained in designing

0:56:01forums for data collection.

0:56:03We seem to hire consultants for everything else

0:56:05and this cost should be minimal.

0:56:07Why put landlords through another confusing form

0:56:09and the cost of submitting it not to mention getting

0:56:12no information for our efforts since the first round of rent

0:56:15registry forms is already complete completely out of date

0:56:19and wasted in fact you have to do that again.

0:56:22Or can we get a reliable form designed by an expert.

0:56:26Further not only in last year's information now completely out

0:56:29of date that data represents only

0:56:31about 66 percent of the total number

0:56:33of rental units in this city.

0:56:35Thirty four percent of the rental units neither pay

0:56:38for business licenses nor provide data and pay

0:56:41into the rent registry That concludes

0:56:43the time for this speaker and this was comments submitted

0:56:47by B.J. thoughtfulness the next comments from Nick

0:56:56Zambrano starting his time now.

0:56:59As we approach the time to address the fire safety

0:57:02issue and Elsa Rito I want to thank the many homeowners who

0:57:05have taken the initiative to clean up their yards

0:57:07and create defensible space on their properties.

0:57:10A special thanks to those Elsa Rideau residents

0:57:12who helped neighbors with cleaning

0:57:14their properties during the fire prevention month of May.

0:57:17Many hours were spent weed whacking trimming tree branches

0:57:20and removing dead and unsafe trees.

0:57:22These efforts will go a long way for preventing

0:57:24a wild fire from occurring on their properties

0:57:27in surrounding properties.

0:57:29As I understand the Trudeau Fire Department has begun the 2020

0:57:33Fire Abatement Program through visually

0:57:36visual property inspections followed by letters

0:57:38to those homeowners who are found

0:57:40not to be in compliance with E.C. vegetation

0:57:42management standards.

0:57:44Hopefully those homeowners sited will

0:57:46be able to bring their properties into compliance

0:57:48without a timely manner within a timely manner

0:57:51so that re inspection can be avoided.

0:57:53Thus saving the fire department time money and resources

0:57:57for conducting re inspection after re

0:57:59inspection in the event that re inspections become necessary.

0:58:03However I would urge the fire department to charge a penalty

0:58:06or fine for each homeowner who is in violation

0:58:10and causes the fire department to conduct these inspections.

0:58:13This was discussed at the recent city council meeting

0:58:16and most agreed that this would be an appropriate way

0:58:19to reduce the number of re inspections

0:58:21and motivate homeowners to voluntarily

0:58:23comply with the vegetation management standards.

0:58:27Such a program was adopted and implemented in 2020

0:58:30by the Oakland fire department and I urge city council

0:58:33and city staff to do likewise.

0:58:35Under such a program homeowners would

0:58:37be allowed a specific period to mitigate the problem for which

0:58:40they were sited and then self report

0:58:42by providing photographic evidence

0:58:44or submitting an invoice or itemized receipt

0:58:46from a contracted provider if a property

0:58:49owner can demonstrate that the deficiency has been remedied.

0:58:53This will eliminate the need for an in-person re inspection

0:58:55from the fire department and therefore no penalty fee

0:58:58would be levied if the homeowner does not

0:59:00comply by following the self reporting mechanism

0:59:03and an in-person re inspection has to occur.

0:59:06Then the homeowner would be charged

0:59:07a fee for each re inspection.

0:59:09Such a program implemented and also Rita would lessen the need

0:59:12to conduct inspections and get cooperation from homeowners

0:59:16homeowners to satisfactorily mitigate the problem

0:59:20and avoid being fined thank you for your attention

0:59:23in this matter.

0:59:23Submitted by Nick Zambrano El Salvador resident MC El

0:59:27Salvador via safe scheme and then moving on

0:59:43to the next comment submitted by Sheri

0:59:45Dubner starting her time now.

0:59:48Dear Mayor these council members city staff city manager

0:59:51and city staff as we watch the horror of George Floyd

0:59:54take his last breath.

0:59:55We must speak out against police violence

0:59:58and we know this is not a single incident

1:00:00but as an systematic issue we know this

1:00:03because Amy Cooper a white woman using white privilege

1:00:06threatened to call the police on a black man knowing full well

1:00:09that such a call could lead to the tragic outcome of death

1:00:12because it happened has happened so many times before.

1:00:16Now we see our society in chaos and as our governor stated

1:00:19in recent days we have failed black people

1:00:21and we have failed people of color.

1:00:23Our system of justice does not work for all only for some.

1:00:27It is time for us to interrupt racism

1:00:30and the silence that makes us complicit

1:00:32when we don't speak out.

1:00:33We shall not be complicit in a system places value

1:00:36in white lives over color.

1:00:39We you and the community to stand in solidarity with those

1:00:42who are seeking justice for George Floyd that have passed

1:00:46through our world prematurely.

1:00:48We leave behind families and friends who might have been

1:00:50your brother or sister or cousin who might be

1:00:53here today if they were right.

1:00:55As the Rita progressed voices invite you to end white silence

1:00:58by joining community members on Thursday June 4th at five

1:01:02thirty in front of city Hall and the police department

1:01:05along San Pablo Avenue.

1:01:07The action will be following the the health guidelines

1:01:10under our city regulations standing areas will

1:01:13be marked six feet apart and all attendees

1:01:15are required to wear a mask.

1:01:17We will have a caravan for those who

1:01:18preferred to be a car in a car.

1:01:21Ours will be meeting at the DMV and circling

1:01:23the immediate area.

1:01:24We encourage people to bring a sign that reads

1:01:26and white silent sincerely also read a progressive's This

1:01:34does conclude public comment received at this time

1:01:44may alignment you are muted right now my God.

1:01:53You are good You should be okay now.

1:01:58Not at my end.

1:02:00I can't hear you.

1:02:00Yes.

1:02:05I guess I don't have control over my mute button anymore.

1:02:08You're okay.

1:02:09We can hear you.

1:02:11Yes but I want to mute I can't That concludes item 3

1:02:16communications from the public.

1:02:19And we'll move on to item for adoption of the consent

1:02:22calendar we have for items on the consent

1:02:25calendar we have for a which is approval minutes from April

1:02:2921st April 25th and May 5th.

1:02:32We have four be Loving Day proclamation which to approve

1:02:37a proclamation on June 12th 20 20

1:02:40is Loving Day in El Cerrito or C LGBTQ Pride Month

1:02:47prop the proclamation.

1:02:50Giving recognizing that we will be flying the rainbow

1:02:53flag at city hall for.

1:02:57California Housing and Community Development Local Early Action

1:03:00Plan grant application we're submitting it

1:03:04for an application for over one hundred

1:03:06thousand dollars in grant funding anybody

1:03:10want to pull any items to discuss or have a motion Janet.

1:03:16I see your hand coming forward but I'll make a motion.

1:03:20All right Jen I kind of like to give Rochelle

1:03:23the choice of making this particularly motion I'd rather

1:03:26second it if that's OK with Michelle Yes I would like to

1:03:34and I would like to read a couple of sentences

1:03:41from the Loving Day of proclamation.

1:03:47My two favorite whereas clauses.

1:03:50Whereas our country state and region are moving forward

1:03:54in the 21st century as multicultural and multiracial

1:03:59society and whereas the city of El Sarita

1:04:02joins other communities to find a common vision

1:04:05from our interwoven past to build a society free of racism

1:04:11for the benefit of our collective future.

1:04:14With that I'll make the motion against motion motion

1:04:18by Purdue Okamoto seconded by Abelson.

1:04:21We have a real hopeless man alignment.

1:04:24Yes.

1:04:25May I pretend that.

1:04:26Yes.

1:04:27Can't remember Wilson.

1:04:28Yes.

1:04:29Council member Canada.

1:04:30Canada.

1:04:31Yes council member Quito.

1:04:33Yes.

1:04:34Motion carries great.

1:04:38That concludes.

1:04:39Item for consent calendar Item 5.

1:04:42Presentation is next.

1:04:43We have no presentations this evening That concludes Item 5.

1:04:47Move on to item six public hearings.

1:04:50We have two public hearings this evening.

1:04:55I will go with our first public hearing which are revisions

1:04:58to the master fee schedule for fiscal years 20 20 20 21

1:05:04Is there a staff report on this item.

1:05:09Yes there is a staff report.

1:05:16Good evening Mayor council members.

1:05:18This is Shannon Collins from the finance department

1:05:23and I am here this evening to discuss

1:05:26the revision to the fiscal year 2020 21 master fee schedule.

1:05:33There were four revisions proposed for the fee schedule

1:05:39that was presented at adopted by the City Council on May

1:05:435th 2020 attachments were given to the council

1:05:50and corrections and updates were highlighted as I

1:05:54did with the master itself.

1:05:56We will allow you to see those revisions more clearly

1:06:01the things that were updated were highlighted

1:06:05blew the deletions were in red and the title

1:06:07and additions were in yellow.

1:06:10So the first correction was in the building department

1:06:15the miscellaneous project item section

1:06:18of the miscellaneous building fee

1:06:20not requiring a plan review.

1:06:23The item the items highlighted in red

1:06:26were duplicated and also appeared

1:06:29in the other miscellaneous fees and assessments section.

1:06:32So the Red highlighted items will be removed

1:06:35and the blue items will remain The second item is

1:06:39the electric vehicle charter section

1:06:42of the miscellaneous fees not requiring plan review schedule.

1:06:46The residents electric vehicle level 1 and 2 charge station

1:06:50fee which as it has been removed from the schedule requiring

1:06:57a plan review to the schedule that requires not

1:07:01requires a plan review due to a reassessment

1:07:04that those permits can be issued without reviewing

1:07:08when guidelines or applying such permits

1:07:11that have been followed.

1:07:13And this change has is in blue The third is

1:07:18the electrical portion of the mechanical plumbing

1:07:21and electrical schedule.

1:07:23It was inadvertently admitted in the original master fee

1:07:29and it has been added to this section

1:07:32and it was highlighted in yellow so that you can see that

1:07:39and lastly there are fees and language

1:07:43changes to the additional fee other mandated building permit

1:07:47section of the s t MP fees which require revision because on May

1:07:535th 2020 the West Contra Costa transportation Advisory

1:07:58Committee notified the city of an annual adjustment

1:08:01for the sub regional transportation mitigation

1:08:04program fees and this because this happened

1:08:08after the the actual meeting this had to be brought forth

1:08:15and we were notified this year that they

1:08:17had a five point six percent increase

1:08:21to this particular fee.

1:08:25At the end of this we we propose or we

1:08:28would like for all of these fees to be included in the fee

1:08:32schedule and if you have any specific questions

1:08:37about these particular fee adjustments

1:08:41the building official and the public works

1:08:45director are here to address any issues you might have.

1:08:49Thank you.

1:08:50Council members any questions.

1:08:54Paul yes.

1:08:59Last time you came before for the fee schedule

1:09:05we talked about the master fee schedule and the fact

1:09:07that it didn't have anything to compare

1:09:09it to from last year's rates and there

1:09:13not again in this document.

1:09:15Can I assume that these have been raised

1:09:18by about three percent which is what

1:09:20you were mentioning all the other fees were

1:09:23probably raised by.

1:09:26Because that is a specific question that the building

1:09:29official has to answer.

1:09:30He was the one who actually created these fees.

1:09:33So on and explain the Francis because there were

1:09:39specific differences some of them were raised by 3 percent

1:09:42but others were mandated in a different way.

1:09:45So it just helps for us to see those differences right

1:09:48raise questions about that.

1:09:49Thank you.

1:09:50Understandable.

1:09:54Good evening Mayor and Council members

1:09:56this is Mark Soltys the building official most of the fees

1:10:00in the fee schedule have actually increased

1:10:02by more than 3 percent.

1:10:05What we did was reassessed every fee in the fee schedule

1:10:09for building and we I sat with not only

1:10:14the permit tax but the building inspectors.

1:10:17We went over the expected times for most

1:10:19of the most of the items as far as how much time it

1:10:23takes for inspection how much time it

1:10:25takes for processing the plans.

1:10:28We also plugged in the current numbers

1:10:31for fully burdened rates of compensation for each

1:10:35of those employee classifications

1:10:39and then once we plug them in to the original fee schedule

1:10:42or the original case study we came up with new numbers

1:10:48and quite honestly some of the fees

1:10:50had increased by 15 or 20 percent

1:10:53and since we were using numbers that were from last fiscal year

1:10:58this past fiscal year we decided to go

1:11:01ahead and take those numbers and increase

1:11:03those by 3 percent CPI.

1:11:05So that's what those fees reflect It's

1:11:13a little difficult to compare.

1:11:15Is there one feed is dramatically

1:11:17increased that we should know about or a certain reason.

1:11:21I can't think of any particular fee that's

1:11:25dramatically increased the kind of increase

1:11:27about about the same amount.

1:11:29Like I said anywhere in the 15 to 20 percent range

1:11:33I did have a spreadsheet that showed

1:11:36the difference between the past fee

1:11:39schedule and the current one proposed I guess that did

1:11:42not get what it was hoping that would

1:11:45be asked for that last time.

1:11:46So anyway we did provide however the difference on the NDP

1:12:00totals that particular schedule actually has the 20 19

1:12:06votes of the 2020 vs is there.

1:12:11Can you provide that material that you just

1:12:14talked about to the council members

1:12:15if you want to follow up on anything.

1:12:19Council member I'm sorry Mia Printemps fidelity that

1:12:22was in the attachment in your packet

1:12:24for the mechanical plumbing and electrical fees.

1:12:26There was all of those fees listed showed the adopted 20 19

1:12:31fee and then the proposed 20 one fee.

1:12:35I'm talking about the miscellaneous building permit

1:12:38fees not requiring plan review.

1:12:41There's no such things here.

1:12:45I'm me and I mean if and if I may interject could you please

1:12:51and make the public come an announcement to ensure

1:12:53that the public can get their comments in in advance

1:12:56of the hearing please.

1:12:58Sure.

1:12:59Karen at this time we are going to be closing

1:13:03the public comment and to to ensure your comments

1:13:07can be received before we close the public hearing.

1:13:10Please submit them now.

1:13:12The period for public comments is open until

1:13:16the public hearing is closed.

1:13:18We are currently have the open public hearings.

1:13:20We had the presentation and we are asking comments

1:13:29all where you finished.

1:13:31Now for the con council members any other questions

1:13:38I'm seeing shaking of head.

1:13:39Although Janet's coming forward I have no questions tonight.

1:13:45So at this point we will.

1:13:47I would seats.

1:13:50I would ask you to read any public comments

1:13:54that have been received.

1:13:57Thank you Mayor.

1:13:57We do have one submission for the site

1:14:00and submitted by Hadi Gowdy.

1:14:02Can you confirm you'd like to stay with the two

1:14:04and half minute time limit.

1:14:06Yes that's about right.

1:14:08OK I will start that now.

1:14:12Mayor Lyman and council members I appreciate the revision evey

1:14:16permit fee to remove the plan check portion making it

1:14:19one hundred and ninety five instead of three hundred

1:14:21and twenty one especially as this is prescriptive expedited

1:14:25permit process it does not require a detailed review if I

1:14:30could ask the colleagues on WebEx to please

1:14:31make sure your lines are muted.

1:14:33Thank you.

1:14:35This revised fee is now consistent with one hundred

1:14:37and ninety four dollar permit fee for general purpose

1:14:4140 a circulate circuit which is really the same scope

1:14:45NPV per permit fee needs the same attention

1:14:47at your last meeting on this topic no council member took

1:14:50any issue with the solar PDP permit rising from three

1:14:53hundred and sixty one dollars to four hundred and ninety

1:14:56five dollars thirty seven percent increase

1:14:59it is far out of scale with the few percent rise that

1:15:02was applied to most fees I was such

1:15:04a large large rise justified what changed from last year.

1:15:08Most residential solar permits also

1:15:10fall under a prescriptive expedited process

1:15:13still in permits under the expedited process do not

1:15:17require a detailed plan check any more

1:15:19than a residential permit application

1:15:22either meets the prescriptive criteria

1:15:24or not it is trivial to confirm and that is the whole point

1:15:27of an expedited process.

1:15:29Please direct staff to explore revising the solar permit

1:15:32fee to plan check fee for other applications that

1:15:36meet the expedited criteria.

1:15:38Thank you submitted by Howdy Gowdy.

1:15:39Else resident and that is the only item comments that we

1:15:45have received on this item.

1:15:47Great thank you.

1:15:49At this point can I get a motion to close the public hearing.

1:15:56We close the public public hearing.

1:16:00Second move able some seconded by Pardue Okamoto.

1:16:04Can you please roll to the public here me and I'm in.

1:16:07Yes ma'am.

1:16:08Definitely yes.

1:16:10Council member opposing.

1:16:12Yes council member Canada.

1:16:16Yes.

1:16:17Council member King 2.

1:16:18Yes.

1:16:19Motion carries All right.

1:16:25At this point would you are there any comments

1:16:29or a motion to approve the resolution

1:16:37and interpret the resolution.

1:16:41Second that excellent slow motion by party Okamoto

1:16:44seconded by Quito and we have a roll call please.

1:16:47The man proving the ordinance near Lyman

1:16:50does not predict Fidel may pretend for daily abstain

1:16:57Council member Abel SEN.

1:17:01Council member a blessing you are on mute.

1:17:05Yes thank you.

1:17:07Council member Patrick modo yes.

1:17:10Council member QUITO Yes.

1:17:13Motion carries great.

1:17:17That concludes item sticks a revision to Fiscal Year 2020

1:17:23twenty one master fee schedule brings us to item six B. Two

1:17:28inclusionary zoning ordinance.

1:17:31At this time please know that the public comment

1:17:35period ends when we start getting

1:17:40comments from the public.

1:17:42This is a great time for you to start

1:17:43submitting your public comments on this item.

1:17:47And at this point is there a staff report.

1:17:50This item there is a factor method.

1:17:57I mean something's not going right.

1:17:59And my name is Vince and I'm the city community development

1:18:03director And these come out to a difficult and firm

1:18:09and a bit refocused on the item of the report

1:18:13but know development often brings up

1:18:14a lot of other questions I'm joined also by senior planner

1:18:17Sean Moss and our housing development analyst.

1:18:20I'm so sorry if you have a specific question Sean.

1:18:24Definitely is assured.

1:18:25Most of the projects through the entitlement phase and I

1:18:28it is helping to increase our affordable housing

1:18:32through the various mechanisms that we can employed.

1:18:36So tonight I'm here to ask City Council to conduct

1:18:38a public hearing and upon conclusion introduced by tidal

1:18:41and wave any further reading amending an ordinance

1:18:44of the city bus Rito chapter nineteen point thirty two

1:18:47the L Street municipal code.

1:18:49This amendment would establish the expiration

1:18:52of the inclusionary zoning ordinance as June 30th 2021.

1:18:55Modify the exemption to require the building permit

1:18:58applications be submitted by June 30th 2021

1:19:02and that building permits be issued within six

1:19:03months of the middle and allowing the exemption for all

1:19:06its home projects to expire.

1:19:07Also on June 30th 2021 regardless of any impact

1:19:10extensions or amendments which are granted

1:19:15as a way of background to remind the city council that when you

1:19:20adopted the San Pablo Avenue specific plan in 2014

1:19:23you'd only seen one large residential development

1:19:26in the decade prior which was the village of Town Center.

1:19:31Of course the purpose of the adoption of a specific plan

1:19:34was to really promote vitality economic development

1:19:37and increase the city's housing supply

1:19:39and the region's housing supply and housing at all levels

1:19:44in August 2017 City Council adopted an Affordable Housing

1:19:47Strategy which identified establishing

1:19:50an inclusionary zoning ordinance as one approach

1:19:52to increasing the city's housing supply

1:19:55and importantly inclusionary zoning which

1:19:57is a non subsidized that receives no public subsidies

1:20:00or it's provided only by the private marketplace

1:20:03and by market rate developers.

1:20:05As such inclusionary zoning requires that those market rate

1:20:08projects are financially feasible so that they can also

1:20:11incur the costs of either including inclusionary units

1:20:14on their site or paying a fee established by the city

1:20:19so that we can leverage additional funds

1:20:21and get often affordable housing at higher numbers and a deeper

1:20:26affordability level.

1:20:29And then in 2018 the city enacted the chapter before you

1:20:32tonight being proposed to be amended which established

1:20:35the inclusionary zoning requirements that required

1:20:37all new projects that were submitted after the ordinance

1:20:40was enacted in 2018 to either contribute below market

1:20:43rate units on site or contribute to that housing

1:20:46fund for projects.

1:20:48At that time had already submitted

1:20:50applications to the city and so they were exempt.

1:20:53At the time that that was adopted

1:20:55it was proposed that they are two years

1:20:56from the time that they got entitled to actually

1:20:59submit for building permits.

1:21:01So that was going to be rolling depending on what

1:21:03the project was submitted and approved

1:21:07and then the absolute sunset of the ordinance

1:21:09was going to be June 30th 2021.

1:21:13At the time we established an economic analysis

1:21:15and that economic analysis that several things it was

1:21:17hard to do an economic analysis and also we because there

1:21:20aren't very many unique compared to

1:21:22and this is something we often hear from developers

1:21:23it's hard to talk to lenders when these projects are

1:21:27and many millions of dollars tens of millions of dollars

1:21:30and to get that money they often need to have evidence objects.

1:21:34The market rates being established to those projects

1:21:38have been entitled for are in construction.

1:21:42To have submitted building permits

1:21:44and the remainder are in various stages either submitting

1:21:47building permits or not as council knows construction

1:21:52costs kind of went up.

1:21:54The estimates are between 40 and 50

1:21:55percent in before the pandemic.

1:21:58The construction costs were very high so some projects

1:22:00were having our counseling.

1:22:02We were working with applicants to see if modifications could

1:22:04be made to their projects through the appropriate design

1:22:06review process to make them more feasible.

1:22:09Then of course the shelter in place and the pandemic

1:22:15arose during that time of course construction activity

1:22:18had to stop.

1:22:19Ramani and the financial markets are of course

1:22:22experiencing a lot of turmoil.

1:22:24We hear we've checked in with brokers we

1:22:26checked in with our developers.

1:22:27We hear that our housing market is likely still very very

1:22:29strong and happy to have these housing units in of course

1:22:33as you know along with these housing units.

1:22:36Some commercial spaces and of course

1:22:39these new residents could be new entrants entrepreneurs

1:22:42as well as customers.

1:22:43Robert so So with that we've kind of examined what could we

1:22:48do.

1:22:49And we realized that at this point in no matter where

1:22:53our project is that was already exempt they're all in the state

1:22:56facing the same market right now.

1:22:57The same need to get funds.

1:23:00And we've heard from many of them for different reasons.

1:23:03They need some additional time and entitled project.

1:23:05Remember it's approved to spend a lot of money

1:23:07to get to this phase and it's about to expand

1:23:09a much more significant amount of need

1:23:11to get to the construction base.

1:23:14So we know that for example and I

1:23:16think you received a letter to this effect

1:23:18the condominium project with 32 condominiums

1:23:21and is hoping to get some markets

1:23:23ready to show to the public.

1:23:26You've seen Creedence go up on there on the building.

1:23:29So they're beginning really assess the market

1:23:31once they have some units that can be shown

1:23:33and they can kind of establish the market they hope to be

1:23:35able to then get into construction

1:23:38documents for their next project So what about September

1:23:40they should be able to show some units get

1:23:42a sense for the market that it would take them about building

1:23:46permits submitted and from their experience took us

1:23:49a while to get their building permit last time

1:23:50then we have to walk through issues.

1:23:54Similarly another project that you might've received a letter

1:23:57from the Big Five project did make project modifications

1:24:01and we worked with them to bring into Planning Commission

1:24:04and Design Review Board.

1:24:05And they were ready.

1:24:06They were very eager to still beat their January deadline

1:24:09for pulling building permits but they the pandemic definitely

1:24:14slowed things down for them.

1:24:16And so they also with this amendment

1:24:18would be able to submit.

1:24:20So of all of our projects we think

1:24:22the majority of them with the proposed action

1:24:25would be able to move into the construction

1:24:26phase which is pretty amazing.

1:24:29And again I know it's a heavy day and a heavy night.

1:24:33And so I know to go into this a lot

1:24:36and I'm happy to answer questions about it.

1:24:38We still feel there is a lot of exciting things happening elbow

1:24:41Avenue and there's still a lot of optimism in terms of both

1:24:43improving the economic basis for the Avenue property tax

1:24:48and revitalizing the avenue or I'd like to see actually

1:24:50bringing vitality to it.

1:24:52It's always been an auto corridor.

1:24:53And so it's gonna be a much more importantly

1:24:58the action before you tonight.

1:25:01There's not the only projects that extend the exemption

1:25:05or are already exempt projects so projects

1:25:08are already complete.

1:25:09When you enacted the first ordinance which had already

1:25:11really developed their financial analysis

1:25:13it already negotiated for land they

1:25:16were developing their projects without the inclusionary we do

1:25:19have two projects that have actually had the inclusionary

1:25:22applied to them and this does not change anything for them

1:25:25so it still only applies to those that already had

1:25:27complete applications at the time

1:25:29that you enacted the ordinance became effective in was due in.

1:25:35So before you tonight most of the changes

1:25:37are in DOL and the exemption chapter of the ordinance

1:25:42and it's all in Section 2 C and D.

1:25:46And Yeah I mean I can summarize them which is basically

1:25:54regardless this would be an easy way to summarize it basically

1:25:58we're requiring that building permits be submitted

1:26:01by June 30th 2021 and that they actually

1:26:05are issued within six months.

1:26:07So that means for some projects if they

1:26:09were originally going to have their exemption expire in June.

1:26:15Right now they will be getting an additional twelve months

1:26:18to submit their building permits and six months to actually get

1:26:21those issued those that were already only going to already

1:26:26were aligning with the exemption meaning

1:26:29that they needed to submit for building permit by June.

1:26:32They're actually getting an extra six months as well

1:26:34right because now they need to.

1:26:36They needed to pull them previously by June

1:26:38and now they need to submit them by June

1:26:40and pull them within six months.

1:26:43So I think that that's just mostly

1:26:45conclude my staff report.

1:26:46However what I would like to point out

1:26:50I could either share my screen but I want to remind everybody

1:26:52that our weekly housing program there is a great web

1:26:55page that ACS prepared that really provides the details

1:26:58and each of these projects I could if you go to our Major

1:27:02Projects page and if anybody wants to pull this up now

1:27:05and all these projects have we included

1:27:08images of these projects.

1:27:09They're all five or six stories one is eight stories

1:27:13and they're really diverse design.

1:27:15One of the things that's very exciting about them is almost

1:27:18all of the great balconies to the avenue and a lot of life

1:27:20to the avenue and so I encourage I can take you to those Web

1:27:26pages now and we can walk through projects if you

1:27:27want or we can I can let you kind of provide the questions

1:27:33and we can I can lead you according

1:27:35to what your interests are.

1:27:37So again tonight I am asking that that you approve

1:27:40the recommended amendment to the ordinance

1:27:43to allow the expiration the the exemptions

1:27:47to expire on June 30 of 2021.

1:27:49In some ways what this is doing is it was rolling

1:27:51and now it's aligning everybody with that same finish line

1:27:54all projects that were previously exempt.

1:27:56And again it does not affect projects that were never exempt

1:27:59and projects yet to come.

1:28:02If it affects them at all it affects them

1:28:04by making them stronger because if these projects get

1:28:06built they create a much stronger

1:28:08marketplace for our next round of development right.

1:28:11Thank you very much for your time.

1:28:14Do I have any questions from council members

1:28:19Rochelle Yes thank you Melanie.

1:28:25I believe you explained it pretty well

1:28:28but I just wanted to reiterate or ask the question one more

1:28:32time so that I will understand.

1:28:35I know everybody on the council is excited

1:28:38about inclusionary zoning want to get

1:28:41there as soon as possible.

1:28:43This is basically an extension for those who were already

1:28:46in the process of basically being delayed

1:28:50which has a lot to do with Kovac 19

1:28:54delaying part of their process.

1:28:57That's correct.

1:28:58That's correct.

1:28:58So it's only projects that were already exempt.

1:29:00I think we're excited about the inclusionary as well.

1:29:04The inclusion will provide us some tools for increasing

1:29:08our affordable housing supply.

1:29:10And so this is already it's just changing the deadline

1:29:13for submitting permits for permits for the projects

1:29:16that were already exempt.

1:29:18Based on the previous and we've heard

1:29:21from many it creates an incentive for them

1:29:24to really move.

1:29:24Importantly also we still use the original sunset date

1:29:28as our benchmark.

1:29:29So it only it doesn't extend it a lot what it does is it still

1:29:32uses June 30 2021 which is not what it always was.

1:29:36It just allows all projects use that sunset date

1:29:38and allows it to be in the middle of building permit.

1:29:41And so it gives six then.

1:29:42But we did still use that as a benchmark.

1:29:44So we really felt very committed also

1:29:48to keeping keeping the pressure on keeping the incentive there

1:29:53and stumped.

1:29:55But you you know whenever there's a development cycle not

1:29:58every single project gets built. But the more

1:30:00can get built in that cycle really do create a stronger

1:30:03position for the next cycle which will include

1:30:06our inclusionary and as an aside I

1:30:08want to remind you that there are two

1:30:11parts that have been improved.

1:30:12One of them actually was a previously entitled project

1:30:15is another nuance of the change to the previous titled

1:30:18Project was a condo project.

1:30:21I think that 27 units or so it's been re entitled

1:30:24as an apartment complex many more units and inclusionary

1:30:27is subject it.

1:30:30It completely changes on a property it will now be subject

1:30:33you can have minor modifications to make it more feasible

1:30:36but if it becomes a new project was an exemption

1:30:39and it is subject and we have that one

1:30:41across from Guitar Center is now subject to inclusionary.

1:30:45Thank you.

1:30:47Thank you.

1:30:49Was that your finger.

1:30:50Yep all my fingers.

1:30:54Thank you.

1:30:54I agree we need to do everything we

1:30:56can to get our development back up to speed San Pablo Avenue.

1:31:00So I will be supporting this.

1:31:02I'd like Rochelle I just want to make sure that everyone is

1:31:04listening understands affordable housing is still a priority up

1:31:09and we need to continue in that direction.

1:31:12So I'm very happy about that.

1:31:13I did have a couple of questions Melanie My first question is

1:31:17how much how much does the city presently have

1:31:21and are affordable housing fun.

1:31:23And would any of these how much would we

1:31:25have lost these projects would have had

1:31:28to pay affordable housing plan but a specific number

1:31:34but is very low the only money that we had in here

1:31:36is probably about three hundred thousand dollars

1:31:38for it total money that remains from the sea raff

1:31:43from the state education augmentation

1:31:46fund we borrowed from the Redevelopment Agency

1:31:48and had to pay back went back in there.

1:31:50So the only funds we really had were

1:31:51to be able to provide a development since redevelopment

1:31:53the solution were to provide a pre development loan

1:31:56which you heard about recently to to bridge you know

1:32:02a small city it's gonna be interesting to build

1:32:03that fund out right.

1:32:04We only have so many projects Importantly however one thing

1:32:06I wasn't able to say is one of these approved projects that's

1:32:09on this list is the Griffin project

1:32:12and it actually is number one hundred eighty three units

1:32:15but because it's a Tier 4 project it

1:32:17actually is going six stories in the zone that was just pipes.

1:32:22You're contributing a million dollars in addition

1:32:24to building permits they will contribute a million dollars

1:32:26to the fund plus seven hundred thousand dollars

1:32:29to complete contempt of Lowe Avenue

1:32:32and they're doing a bike station alone in Greenway and a pathway

1:32:35connecting Avenue to the Greenway with art on it.

1:32:39So importantly that project with a Tier 4 project and it

1:32:41it's public benefit.

1:32:42It will be contributing a million

1:32:43dollars to that to the fund so that will be a pretty big.

1:32:47It's important for us to try to get those moneys in the fund

1:32:50because that will help us because until the county does

1:32:53not have a housing mom having those funds definitely

1:32:56will help leverage money.

1:32:58We are however working hard with Bridge Housing on the 67

1:33:02affordable in the Mayfair project the affordable housing

1:33:06component ISIS working hard with bridge

1:33:10and with a group called Enterprise to try to leverage

1:33:13to try to put us in line to get affordable housing

1:33:15Sustainable Communities grant funds the climate

1:33:17change funds and trade.

1:33:20So I'd say our biggest affordable housing project

1:33:22right now that we're working on assembling funding for is

1:33:25the 67 unit project at Maker Otherwise in terms of it's

1:33:32a little hard to say the report going by these projects

1:33:35not being inclusionary just getting

1:33:37really weigh those against that the need that developed right.

1:33:40I mean that was a right assuming that they would develop

1:33:44it if that was the time.

1:33:46But so for 0 1 0 1 6 7 would be 6 units

1:33:50or 700 forty thousand dollars to a unit in terms

1:33:54of if it is worth between 150.

1:33:58So your analysis mentions a projects

1:34:01where you help them get rid of the underground parking

1:34:04to keep track financially moving forward

1:34:07with this not to help them.

1:34:09Do they have to do that and seek this relief as well.

1:34:13That's right.

1:34:14And I'm not sure if I might be seeing if somebody

1:34:17is on that that's right.

1:34:18So one of them did believe.

1:34:20So I would say the Griffin project

1:34:22removed underground parking and switched to ramps which meant

1:34:26they had to be a little higher on the ground floor

1:34:28and a little higher so they did go

1:34:29back to the Planning Commission and the Design Review Board.

1:34:32That was what they were doing and that they felt they were

1:34:35working really did a beautiful design they

1:34:37really state kept the integrity of their design

1:34:39and they were doing that.

1:34:40I did ask him at one point you know

1:34:42if we go through this whole process what are the chances

1:34:44that you're actually going to get in the ground

1:34:45and he said I wouldn't be going through all of this spending

1:34:47this money with my architect to redesign a project

1:34:49if I didn't think it was going to work.

1:34:51So he was very working very hard to be able to pull building

1:34:54permits by January and then we really we talked to him one

1:34:58week he was gung ho moving and then the pandemic

1:35:02and he still you know there was a couple week law

1:35:05and then it became clear that you just can't get people right

1:35:07now to commit to financing.

1:35:09So the time became the issue so for his the modifications

1:35:13were possible they had designed their units a little larger

1:35:16than our average unit so that they had some room to move.

1:35:19Others have a hard time harder time figuring out

1:35:21if they weren't doing underground parking they don't

1:35:22have something to remodel and I want to let the public

1:35:25know they maintained their parking

1:35:26numbers when they removed it.

1:35:28And we're finding we're actually discouraging people

1:35:31from doing underground because we're finding whoever's done

1:35:33that it's it's not canceling.

1:35:36So we had another project that is subject to inclusionary

1:35:39that is looking at doing some re entitlement

1:35:41as well making bigger units but removing

1:35:43the underground parking.

1:35:45So I think that answered your question which

1:35:47is some can another village or town center tried to look

1:35:51at whether they could do those changes

1:35:52and they could do the inclusionary

1:35:54will be a big different paper.

1:35:55My last question is you you have a six month provision here

1:36:00to incentivize these projects to move forward with this action

1:36:05we take tonight.

1:36:06No we're always fearful of developers selling the project

1:36:09and making them more valuable.

1:36:11Will this make the projects more valuable to sell

1:36:16sell Is there anything to prevent them from selling.

1:36:19Now that we've jumpstarted them so we've

1:36:22talked a lot about that.

1:36:23So I kind of think there's probably more

1:36:26than I'd like to think about the development community

1:36:28in kind of four or categories.

1:36:30Some are super super motivated to build this to two categories

1:36:35right now some are really motivated to build

1:36:38and some are more speculative and often end up selling

1:36:40and sometimes projects not in their second or third buyer yet

1:36:43Bill Gates is just kind of a large on it.

1:36:45I actually think that some I think of these most of them

1:36:50have are the actual builders.

1:36:52I think a couple might know but important to remember

1:36:55is when they sell they do sell with this

1:36:57that keeps the same deadline.

1:36:59So it's still June 30th 2021.

1:37:01Right.

1:37:02So.

1:37:02So that line goes what the buyer does with that with the project

1:37:07not with the owner.

1:37:08Okay.

1:37:09So I think I think my perspective

1:37:12on that is this entitled project we still want to get

1:37:14it built. And we'd rather get it built

1:37:16by whoever is going to build versus the current owner.

1:37:18If the current owner isn't going to build it.

1:37:20So the answer is yes some of them might sell

1:37:23and it definitely if they didn't sell it.

1:37:26If this wasn't enacted it would make them less valuable

1:37:30and less likely to get built. I think

1:37:32my you'll get Shawn every time.

1:37:35Any other questions.

1:37:36GABE No.

1:37:36Jan No.

1:37:38Okay great.

1:37:40Then I will go back to my script which

1:37:42I believe is for me to open the public hearing

1:37:48and ask the lawyer to proceed with public comment

1:37:53Thank you ma'am.

1:37:54We did have one submission that was published with the counsel

1:38:00package as well as one that was published by the 12:00 deadline

1:38:03today.

1:38:04So that has been provided directly to the council members

1:38:06and posted online a supplemental the ones

1:38:09that were received today was from Mike Branagh

1:38:13and we do have one additional comment mayor

1:38:15and just confirming that two and a half minute

1:38:17timeframe the timeline is still yes.

1:38:21Thank you sir.

1:38:21We'll go ahead and start that now.

1:38:24These are submitted By Howdy Gowdy.

1:38:26Mayor my meeting council members I

1:38:27support extension of the inclusionary housing exemption

1:38:30for existing projects that qualify for this exemption.

1:38:33It is if it allowed allows even just one of these projects

1:38:37to move forward it will be helpful however given

1:38:40the importance of the inclusionary ordinance

1:38:43to help produce affordable housing in our community.

1:38:46I encourage you to send a clear message that this

1:38:48is the final extension that will be granted for this exemption

1:38:52while the city has a number of new affordable housing units

1:38:54and we are doing well on our regional housing targets

1:38:57for affordable units.

1:38:59This is mostly a legacy of renewal

1:39:01redevelopment agency owned sites and not

1:39:03the specific plan itself.

1:39:05This specific plan has not produced significant numbers

1:39:08of affordable units on its own which

1:39:10is why the inclusionary ordinance you passed

1:39:13is crucial to achieve new affordable housing and else.

1:39:16RENO We are in uncertain times that the exempted developers

1:39:19have already had a couple of years to perform

1:39:22and will get more than another year.

1:39:25Please send them the message at the time

1:39:27to enjoy the current conditions of their entitlements.

1:39:29It is not indefinite and that this extension

1:39:32is their chance to perform.

1:39:34Thank you Gabby L Street a resident just confirming

1:39:38that concludes our public comments on this item

1:39:45How are you for those comments at this point.

1:39:49You know other comments from the public.

1:39:51A motion to close the public hearing.

1:39:54Samo moved by those seconded by Finley.

1:39:58Yeah.

1:40:00Hey can we get a roll call vote please.

1:40:04Mayor Lyman yes Mayor Purdum FDLE yes.

1:40:08Council member said yes.

1:40:11Council member Pardue Okamoto.

1:40:13Yes.

1:40:14Council member Quito.

1:40:15Yes.

1:40:16Motion carries great this an opportunity for council members

1:40:21to make comments.

1:40:22Anybody have comments to make.

1:40:26I will.

1:40:27I will take the opportunity to echo Mr. Gowdy sentiments.

1:40:33Somebody like council member Ableton who's

1:40:36been on this council for quite some time we took a long time

1:40:40to get us to the same people Avenue specific plan that

1:40:44really has sparked such tremendous development

1:40:46change along the avenue to see this many projects

1:40:49on the books.

1:40:50It's fantastic to to grant entitlements

1:40:56is something that is shouldn't be taken for granted.

1:41:00I know for before I join the council

1:41:04the creek side development was entitled

1:41:09and of course it didn't get built

1:41:10until almost two years ago.

1:41:13So we can see entitlements languish for quite some time.

1:41:17So we'd like to make sure that we maintain this incentive

1:41:22for development so that That concludes my comments

1:41:26and we'd love to have a motion for an ordinance for sorry.

1:41:32I've got to read this.

1:41:33I would introduced by tidal and wave further reading

1:41:36of an ordinance of the city of Elsa Rito

1:41:38amending Title 19 of this Elsa read a municipal code section

1:41:42one nine point 3 0 point 0 3 0 removed second move Bible deli

1:41:53and seconded by Quito We have a roll

1:41:56call vote please mainlining.

1:41:58Yes May I pretend that I live.

1:42:00Yes.

1:42:02Council member.

1:42:03Yes Council member.

1:42:05I do Kimura.

1:42:06Yes.

1:42:07Council member Canto Yes.

1:42:10Motion carries Great.

1:42:15Thank you.

1:42:15That concludes.

1:42:16Item six B. Amendment to the inclusionary zoning ordinance

1:42:22brings now two items seven policy matters.

1:42:25We have put forward policy matters before us tonight.

1:42:29First policy matters 7 a is the tax

1:42:33and revenue anticipation notes for fiscal year 2020 2021.

1:42:38Our short term cash flow financing

1:42:42and this this is it begins the end

1:42:47of our public comment period.

1:42:49So now is your time YOUR FINAL.

1:42:52I'M GIVING OUR comment your comments and public comments

1:42:56in and it looks like Mr. Assad you

1:42:59are queued for a presentation.

1:43:02Thank you Mr. Mayor.

1:43:04Good evening.

1:43:04An honorable man.

1:43:05Council members Marquis iron finance Victor.

1:43:08I'm here to ask Council to adopt a resolution approving

1:43:11the barring of sons of the 20 21 and the issuance of any sale

1:43:16of tax receipts anticipation notes Tran staff has

1:43:21been working with our financial advisors

1:43:23energy and volume council.

1:43:24Hauled together the material that's in your pocket tonight

1:43:34the city has issued a fine in each of the last eight years

1:43:37to include to handle the timing disconnect between general fund

1:43:40revenues and expenditures as was the case in previous years

1:43:44staff expects cash flow a shortfall

1:43:47in mid-November to December.

1:43:49A facility such as the trend to reach that deep in cash

1:43:52flow pending receipt of property taxes and revenues

1:43:58Unlike prior years we have the city

1:43:59borrowed directly from a single bank

1:44:01this year the trend structure will be completed

1:44:03through a public offering much which will open up any investor

1:44:07pool to more people which will generate more competitive

1:44:09pricing for the trend and also loving

1:44:12investors to participate without having

1:44:14to purchase the entire amount.

1:44:16The sale strategy requires more resources including creating

1:44:20a disclosure document that before the grand jury

1:44:23we shall statement and underwriting all

1:44:26of these expenses increase the total cost of the financing

1:44:31but the offset is the intention of a law all in cost of funds.

1:44:34And so that's what's different in this particular year

1:44:39The city is not new to public offerings

1:44:41before this is done public offerings

1:44:43without bond issuances and our boundary fundings.

1:44:46The last one being January of 2017

1:44:49and really funded the City Hall did issue

1:44:52and so that was that has been done before

1:44:54and as in previous years we've put together us

1:44:57or a preliminary official statement at the last council

1:45:04meeting in May.

1:45:06Craig Hill of Energy Advisors I thought

1:45:10made an excellent presentation to provide context

1:45:12for this trend issuance which at this point

1:45:18estimating the pricing to be around eight point five million

1:45:21on the trend.

1:45:23The interest rate on the trend depends to a large extent

1:45:25on the credit rating by Standard and Poor's and so that is

1:45:30dependent on the city's credit rating specifically to this

1:45:34issuance part that the material in the council

1:45:42package includes everything that we

1:45:44have for the Qur'an issuance.

1:45:47And before I conclude my remarks I'd

1:45:49like direct I'd like to thank NHK Chris and Craig and rob

1:45:57or all of the effort they put into this process

1:45:59to bring this document ready for us

1:46:02at this meeting in the short time

1:46:04that we've had in the last month and a half of it.

1:46:08That being said I will take any questions that you might

1:46:10have from me at this point.

1:46:12I mean I also mentioned that Chris Lynch joins

1:46:14HALL And Craig Hill from energy all this on this call

1:46:18gives you any technical questions for them.

1:46:20Thank you.

1:46:23Great we.

1:46:24Yeah I see we're showing your hand up first.

1:46:26Go ahead right.

1:46:28Yes.

1:46:28And I had a question about the sales tax.

1:46:34There was something I noticed in there

1:46:35and we also brought an email from one of our constituents

1:46:38this morning.

1:46:40If you're looking agenda packet age 85 the fiscal year 20 20 21

1:46:49and projected general fund cash flow

1:46:53there's quite a large leap wouldn't you get to you

1:46:58and 0 for lie.

1:47:01So once again that's sales tax 0 for July

1:47:07and then it jumps up to one point five 9 million

1:47:12in June and next fiscal year so the important thing

1:47:19to keep in mind is that this cash was

1:47:21the start of this whole blue mid-June cycle

1:47:25and at the time that we did this we end up so far

1:47:29I need to point out deal that sales tax revenues received

1:47:32typically one month in arrears.

1:47:35So for example we would get the sales taxes for June

1:47:39of 2010 any in July of 2021.

1:47:43So back in April and we put this thing together

1:47:45we anticipate that the sales taxes in June

1:47:48would be almost non-existent because in the last three

1:47:50months alone you've seen sales tax assets to zero that you see

1:47:54there late July of twenty twenty and then you

1:47:58have sales tax that is for the rest of the year for 2021

1:48:01ending that June of 2021 which keep in mind

1:48:05includes the sales taxes from May

1:48:08and the budgeted figure for that year is at this point.

1:48:11Based on that initial estimate was six point me down.

1:48:14So any other difference between that and the total

1:48:17is lumped into June at that point

1:48:18and that's when you see that each numbers you have

1:48:20to add up the number the accounts of what's

1:48:22to be picked up in May.

1:48:24And also the pieces that would come in in June

1:48:26after granny 21 and that's the reason for that big difference

1:48:32OK.

1:48:33And that May and June together.

1:48:36I mean it still looks like like that three times what

1:48:41our normal amount is Does it have anything to do with taxes

1:48:48being delayed at this point or so that's something

1:48:52else the state is offered which is for sales taxes

1:48:56to be paid off over a longer period of time so a piece

1:48:58of that coming from that as well.

1:49:00But more important to keep in mind that much of our sales tax

1:49:04is the big amounts the 700 800 thousand dollars in sales taxes

1:49:08tend to come during the summer months May and June

1:49:11and so combining to Lunch Day is not unusually

1:49:14large in that context I would expect to have at least 13

1:49:18to 14 at one point three to one point four million

1:49:21dollars in sales taxes just for those two lines

1:49:23alone OK thank you.

1:49:37Questions Paul.

1:49:41Yes.

1:49:41Hi Mark a few questions here.

1:49:45I was to your knowledge were all the previous eight

1:49:49trends efforts voted on by the City Council

1:49:53and also you know to say it again

1:49:56I missed that everyone's not answering has not been

1:50:01ordered by city council OK.

1:50:02Thank you.

1:50:04Did the fab have any review of this process that we're in now.

1:50:08Did they look at what was presented and given

1:50:10to us in a normal year.

1:50:13Yes but under the current circumstances

1:50:15almost every council meeting that we've

1:50:18had in the last three or four weeks

1:50:19has had something compressed in terms of timing

1:50:22and in fact I was in conversation with the chair

1:50:24of the fab Dick and we were discussing the woman moment

1:50:31movement of things as things just taken off

1:50:35and we've been bringing back things to so at a

1:50:37much faster yes it would be good to bring them in since they're

1:50:40there and they're our financial advisors on the Friday

1:50:43of effort hopefully suddenly.

1:50:47OK.

1:50:50Did are I noticing that in the analysis

1:50:53it says we're going for an eight point five million but

1:50:57in the resolution it's an eight says point nine is it

1:51:00why is there a difference.

1:51:03It's a Yeah I could explain that.

1:51:05I think Craig Hill would better be able to expand

1:51:09that than I could.

1:51:10It has to do not to block cost additional costs

1:51:13beyond the interest or.

1:51:14No no no it's just that the trend itself is a debt

1:51:17instrument that's like any other bond

1:51:20there is a coupon payment the coupon payment becomes

1:51:23due at that point in time.

1:51:24The issue this thing at a premium we get a lower rate

1:51:27and the coupon this provides us with a certain amount

1:51:30of headroom to be able to negotiate the rate at the time

1:51:33that we take this trend to the underwriting

1:51:35process to the eventual buy and I think Craig

1:51:38Stop me if I'm wrong but that's my understanding of fund

1:51:42financing.

1:51:42Yeah.

1:51:43The inverse relationship between the yield and the premium that

1:51:46might need to be incurred in order

1:51:49to get a lower rate by selling a trend at a price with a higher.

1:51:53But if I can Miss Craig with NHL advisors to the authorization

1:52:00that resolutions outlined his eight point nine million

1:52:03with the intention that there is a legal limit to the amount

1:52:09that the trend can be issued based on the actual cash

1:52:11flows that are being developed by the city as part

1:52:15of your budget process and the projection work.

1:52:17So we work closely with the attorneys Jones HALL Chris

1:52:21Lynch who's also at this meeting and calculate exactly what

1:52:26the legal limit is you can't borrow

1:52:28more than you actually can justify

1:52:32based on the calculation.

1:52:33And to Mark's point you're absolutely correct that once

1:52:36we go to market if there is a premium that is offered

1:52:41to the bond we know we have to stay below the legal cap

1:52:45so we tend to sometimes give ourselves just a little cushion

1:52:50in the event that the cash flow changes and does allow

1:52:54to issue a little bit more.

1:52:55We're eight point nine was kind of what we've been working

1:52:58with for the last couple of months

1:53:00but we understand that these cash flows will be refined all

1:53:03the way through the next week or two

1:53:06before we would actually go to market such a lengthy saying

1:53:09public namely high end for an eight point nine

1:53:11rather than an eight point five I mean that in our mind yeah

1:53:20we're indifferent but we will owe more with an eight

1:53:23point nine Is that correct.

1:53:26There would be interest on that extra 400 tons

1:53:28a year correct so right now the one hundred

1:53:30and five thousand interest is for the eight point five

1:53:35so that number would change change.

1:53:40This should not change if we get if we

1:53:42get an eight point nine long.

1:53:44That number won't change.

1:53:46So remember that's the cost of insurance

1:53:49That's the amount that we pay bond

1:53:50counsel we be Energy Advisors.

1:53:52We pay the underwrite and so on.

1:53:54And those are fixed contractual amount that will not

1:53:56that's out in 5000 Centaur.

1:53:59Okay but we may end up with an eight point nine La need.

1:54:05Again Craig is the best So I think that the short answer

1:54:10will be you know while we are asking the City Kennel

1:54:13Club tonight to approve a resolution

1:54:15not to exceed a point nine it will really be up to.

1:54:19We have many clients that when they get authorization

1:54:23for a trend they actually issue less

1:54:25and it could be that we decide based on what

1:54:28the market presents to us that we we can actually do

1:54:32with only borrowing 8 million.

1:54:34Right.

1:54:34So that's where we'll be working closely with staff

1:54:37to really refine the cash flow the intent is to borrow as

1:54:40little as possible obviously.

1:54:43So we will but we want to make sure we're borrowing enough

1:54:47to meet that deficit the maximum deficit

1:54:49that Mark is talking about occurring

1:54:52in November or early December for that big property tax

1:54:56payment.

1:54:56So it's critical that we have that capacity and in the past

1:55:01we've worked with the city for a number of years.

1:55:04There have been years where we've

1:55:05kept that trend fairly small and for unforeseen reasons

1:55:09we've got to November.

1:55:11And the cash position has been extremely tight for the city.

1:55:15We we probably could have solved that

1:55:17by having a slightly larger trend that year

1:55:21and this year we're being extremely conservative

1:55:23obviously not knowing where these revenue

1:55:24projections are going.

1:55:26But as a range we need to deal right.

1:55:28Right.

1:55:29Okay.

1:55:30Let my last question is is there any

1:55:32You refer again to this amount of money

1:55:34from our S M S C R appeal marker.

1:55:40Karen do you know any progress on where we could get

1:55:44money back right by the end of the year we

1:55:47might know that or no.

1:55:49Or what.

1:55:50Skye I would not count on the absolutely

1:55:56how much is it for how much might it be back to us.

1:55:59It's about one point seven million

1:56:00if I'm remembering correctly after several years

1:56:03of the appellate courts just sitting on our case

1:56:06not doing anything with it.

1:56:07And you can probably hear my frustration in the way

1:56:10that so e case has been fully briefed

1:56:17and we have yet to receive a hearing date.

1:56:22So basically what would happen is

1:56:24if we received a hearing date it would probably

1:56:26be several months out there would be the case would be I

1:56:31would have received oral arguments

1:56:33and then the court would have some time after that

1:56:35to actually issue a decision as it is right now though we're

1:56:39just stuck because there's no actual means

1:56:42to compel California appellate courts to schedule a date.

1:56:46But just from the schedule that I outlined even if we got

1:56:50a hearing date set tomorrow we probably

1:56:53would not receive a decision by the end of the year.

1:56:56I have spoken with some folks recently

1:56:58who said that cases that are about the age of Rs

1:57:02have recently been making their way.

1:57:06You have started to see some motion

1:57:08in the courts in Sacramento.

1:57:09So it's possible that ours might actually pop up with a date

1:57:13once the shelter in place orders are relaxed

1:57:17and the California judicial council

1:57:20begins to allow courts to Begin proceeding

1:57:24in more normal manner.

1:57:26But it's not going to be for a while

1:57:28and certainly not this calendar year

1:57:30no influence on this or in the audit

1:57:33that the state will be conducting

1:57:34in the future for us.

1:57:36I would definitely not on this and

1:57:37highly unlikely that it would have

1:57:39any effect on state auditor.

1:57:41Thank you.

1:57:44The other questions well not done.

1:57:47Thank you.

1:57:47All right Gabe work Janet Thank you.

1:57:54There was no games I do have a question.

1:57:58So I believe Paul finally mentioned

1:58:02this regarding dealing with these tours

1:58:13that we do get this.

1:58:18So fab I just want to make sure that we get this right.

1:58:22So fab will be meeting this month and next month

1:58:27and we'll be working with staff and with our executives at City

1:58:32Hall with Markus while Zach right here we

1:58:36are going to start working with all the staff

1:58:38liaisons and the chairs of the boards and commissions

1:58:41starting within the next couple of weeks.

1:58:43Now that you know some of the orders list

1:58:45and we're looking at scheduling meetings.

1:58:49So as Mark indicated he's already spoken with the chair

1:58:52and what we're going to do is is kind of work through a platform

1:58:56to setup virtual meetings for all of the advisory bodies

1:59:00including fab so certainly now that we're going into

1:59:03as as we're going to be continuing talking about budget

1:59:07and all of these items that certainly we will work

1:59:10with the fact to have a timely meeting

1:59:13when they have the ability to do so

1:59:15certainly no later than July.

1:59:17Okay probably within the next few weeks

1:59:20And I encourage the Fed to me.

1:59:23It's so important that we get their advice

1:59:26as well to make sure that we're doing this correctly.

1:59:28So Yeah thank you Paul for mentioning that

1:59:32and I appreciate that.

1:59:34Absolutely.

1:59:35Thank you.

1:59:38Great.

1:59:39I've got a few questions.

1:59:41I think Mark and and to some degree Craig

1:59:45you've basically outlined ordinance is an authorization

1:59:49it's an on Bill open out or on low or an umbrella under which

1:59:52you will be getting funds they point nine million for example

1:59:57is eighty five percent of the cash flow

2:00:00and that's white eight point nine million

2:00:02is in the resolution although your your anticipation is eight

2:00:05point five million.

2:00:07Additionally on Section 17 page seventy

2:00:11one of our packet there is a discussion of the true interest

2:00:16costs of the notes shall not exceed 5 percent

2:00:19and the underwriters discount on the purchase of notes

2:00:21shall not exceed three and a half percent.

2:00:23And so I'm wondering if you could

2:00:25speak to what your anticipated real rates are.

2:00:31Given that you've identified Max moms in the agenda below you

2:00:36you identified a range of 2 3 percent.

2:00:40I was winning if you could speak to what what you're seeing

2:00:45as actual rates as we get out into the marketplace

2:00:49at this time.

2:00:51Sure sure.

2:00:52Great great questions Mark.

2:00:53You want me to take this.

2:00:55Yeah just like so the good news is that there have been

2:01:01and are starting to be other municipalities

2:01:03that are going to market.

2:01:04So we are getting a chance to really see what the credit

2:01:08markets are providing in terms of interest rates

2:01:11to cities such as Serino.

2:01:14Now we have we're in the middle of the rating process

2:01:18so the staff just met I had a conference call with the rating

2:01:23analysts earlier this week.

2:01:24We will know next week what the rating will be the best reading

2:01:28you can get long term you know triple-A

2:01:31in a short term like a trend.

2:01:33It's s p one plus the next notch down as S P 1

2:01:38and then it's an S P to just to give

2:01:40you a good idea of what those interest rates would look like.

2:01:46They're all basically even if you were s P to better

2:01:50than the rate we had last year with the the local community

2:01:54bank we are seeing the current S P

2:01:581 plus credit pricing around 1 percent to one and a quarter.

2:02:04If you're in that second category your one

2:02:07and a half to one and three quarters

2:02:10and we're expecting it if you were in the third category

2:02:13worry that you would probably be two to two and a quarter maybe

2:02:17two and a half we just haven't seen

2:02:18any transition in that category yet so far

2:02:22this year they have not priced.

2:02:25So that's you know the range we're talking about really

2:02:28is probably one and a quarter to 2 as the as the interest

2:02:32rate or the nominal cost of funds.

2:02:35And I would like to state that there is a correction

2:02:41to the resolution in terms of the not to exceed

2:02:45for the underwriter whereas we're stating three and a half

2:02:48percent it's actually point re five

2:02:51percent so that's a nice typo.

2:02:55So we just there's an extra decimal place slide in there.

2:02:59So that when we do make the motion to.

2:03:04It would shell not exceed zero point zero point zero

2:03:09three five point three five percent

2:03:13five point three five percent.

2:03:16Got it and there it is the cash flow that that comes member

2:03:25Purdue Okamoto brought up does look like it does not

2:03:29necessarily take into consideration I think the text

2:03:32on the next page of the pulmonary official statement

2:03:36talks about the fact that we are in the process of making cuts 2

2:03:40million dollar 5 4 million cuts but those are not necessarily

2:03:43in the cash flow is that true that is true because these cash

2:03:48flows would go and like I said back in April before those cuts

2:03:51were authorized and these are highly constantly cash

2:03:54for in many ways you'll notice that

2:03:56the budget numbers on the 2021 go back hark

2:03:59back to the February baseline

2:04:03budget.

2:04:03So these will be revised as Craig pointed out before we

2:04:06come out to the final of your statement

2:04:08in the next stop we can have.

2:04:11Again those cuts will generate more

2:04:14cash if they were factored in.

2:04:17And you know this is a preliminary official statement

2:04:19so I'm assuming like you just said that there will be

2:04:22a final one I do notice that on page is a twenty

2:04:26one a 22 and a 20 for the fire safety plan classic

2:04:35is not in here is that intentional

2:04:37or is that just as a result of this being pulmonary.

2:04:41Well actually it's both the fire and BD have

2:04:43the exact same classic number.

2:04:45So it's just the police has to be

2:04:48producing safety in that case it covers both obedient fire.

2:04:52So the numbers that are showing up on those same areas does

2:04:55covers both default plays are wrapped into that same category

2:05:005 a classic Got it.

2:05:02Great.

2:05:03Thank you.

2:05:03That's a good answer.

2:05:07Can you speak to the 50 50 clause there's

2:05:10a both in the preliminary official statement

2:05:15and in our resolution it says that we

2:05:18paid 50 percent back in January and 50 percent back in May.

2:05:22However are our tax revenue least our property tax revenue

2:05:26is not 50 50 in in December and April so just curious

2:05:30if you could speak to why 50 50 and how that plays

2:05:36into our cash flow overall.

2:05:38Chairman Go ahead.

2:05:40So the in order for the credit of a train

2:05:44to make an investor comfortable as I think we discussed

2:05:50at the last council meeting the way

2:05:52that trains work is all of the principal and interest

2:05:55is due and payable on the final day on maturity date.

2:05:59So there is this reliance on the city

2:06:02to you know over the course of a year

2:06:06make sure that it is has sufficient revenues

2:06:09at the end of the fiscal year June 30 to basically

2:06:12pay back the trend.

2:06:13We do that through this structure called a set aside

2:06:16and set aside is the city holding

2:06:19the money itself effectively in escrow so you control it.

2:06:24It is still in your pot you're not actually paying it back

2:06:27to the investor but you are encumbering

2:06:31it or effectively kind of putting

2:06:32it into an internal lockbox.

2:06:34We the closer and you can step those 50 50 dates to kind

2:06:41of the significant revenue months

2:06:43that we now which are typically December

2:06:46and April the kind of the higher the credit right.

2:06:50So it's a it gives an investor more confidence

2:06:52that oh the city is able to set aside half of what they're

2:06:56gonna pay us back in January.

2:06:59That's good.

2:06:59That's a good thing.

2:07:00So we do have some flexibility to change that.

2:07:05Usually it's down a little bit earlier in this case

2:07:07we're really pushing to get the lowest cost of funds

2:07:10and so we're advising the city to take a very aggressive

2:07:14position to set aside 50 percent in January

2:07:19and then the 50 percent after the second installment

2:07:22with the interest set aside in June obviously Great.

2:07:28Thank you.

2:07:29There is a long discussion in here about Proposition 13 it

2:07:33starts on page 1 0 8 of 1 eighty four or appendix a twelve

2:07:38and it does talk about the assessed value of the city

2:07:41and the assessed value of some of our commercial properties

2:07:46and notably I think the top of 10 parcels represent three

2:07:54and a half percent of our of our overall tax revenue There is no

2:08:02did I miss it or was there no discussion about the fact that

2:08:06there is a ballot measure that's been that's been qualified

2:08:10for the November ballot that would potentially change

2:08:14the assessment of our commercial real estate

2:08:19and that's certainly potentially could

2:08:21change the amount of revenue we

2:08:23would get off of the commercial real estate.

2:08:26Just curious if that was something that you're assuming

2:08:29the investors would know or if that's something that you've

2:08:33intentionally left out.

2:08:37Chris can you speak to that.

2:08:38CHRIS LYNCH Hi this is Chris Lynch from Jones Hall.

2:08:41That's a good point.

2:08:42If we don't have disclosure about the split role initiative

2:08:46which I don't think we do we will

2:08:47add that for the next draft.

2:08:50And I should be clear about the preliminary official statement

2:08:52vs. the final official statement the preliminary official

2:08:56statement should be the same as the final list

2:08:58official statement except to the final official statement

2:09:01includes the final pricing numbers

2:09:02the principal amount the interest

2:09:04rate the maturity date.

2:09:06So we do want the preliminary official

2:09:07statement to be in final form and it

2:09:09gets circulated to investors.

2:09:11So I heard some comments about the classic pension disclosure.

2:09:16And I also heard a good a good comment about adding the split

2:09:20roll initiatives and we will do that for an extra

2:09:23as long as you're making minor corrections.

2:09:26There is one little typo on the very first page

2:09:28of the primary official statement the lateral tax

2:09:32that goes up and down the margin you should

2:09:35be a nor not a no in there.

2:09:39So just thank you very much.

2:09:41Meyer minor typo there in into that end.

2:09:47Karen the are clearly given our current state of affairs

2:09:53it is seems to me that we could be supportive of the split

2:09:59roll a tax matter over measure that coming forward in November

2:10:08What is the process for making sure that that position is

2:10:13is formalized so that it's that we can send a clear signal

2:10:19to our investors what our position is Or even

2:10:23to our people around the state who are starting to take

2:10:30positions on these matters.

2:10:32Sure.

2:10:33I understand it just qualified for the ballot

2:10:35so I will look to that I will look to our neighbors

2:10:38I will look to the league to see that we can provide support

2:10:41of some sort of documented resolution in support

2:10:45or a letter in support from this council

2:10:47to approve at a future meeting.

2:10:49I'll do that research Great.

2:10:51Thank you very much.

2:10:53Any other questions at this time seeing none.

2:10:58I'm going to open my script which

2:11:02is I will now ask the clerk if there

2:11:06are any public items on this.

2:11:08I think there were at least four when you

2:11:10flashed your screen up before.

2:11:13We actually do have three additional public comments

2:11:17that were submitted.

2:11:18And this is in addition to the comments that were received

2:11:20by the 12 p.m. deadline today from Valerie Snyder which

2:11:23was provided with supplemental materials

2:11:26to the council members and posted online

2:11:28in advance of the meeting.

2:11:30Could you please confirm that two and a half time per speaker

2:11:34a total of seven comments at this time

2:11:36we have no we have a total three.

2:11:38OK two and a half.

2:11:39It sounds fine.

2:11:40Okay.

2:11:41Perfect.

2:11:41So I will commence with the first speaker

2:11:43now from Diane Brenner electorate resident.

2:11:48Thank you Mr. Mayor.

2:11:49City council and staff.

2:11:50These are some things I have noticed

2:11:51while observing our city's budget

2:11:53related proceedings since last October.

2:11:56In October twenty nineteen the California State Auditor

2:11:59published a list of top cities facing financial challenges.

2:12:02Elsa Rideau is number seven on the ranked order

2:12:05list of 471 cities.

2:12:08Elsa Trudeau is also among the top three fiscally challenged

2:12:11cities in our region.

2:12:12The two other being Richmond and Oakland recently both the city

2:12:16manager and members of City Council

2:12:18have made statements to the effect that before the pandemic

2:12:21they were on track to secure the financial health and long term

2:12:24sustainable city of the city.

2:12:26I find this to be misleading.

2:12:28The financial challenges Elsa is facing have been building

2:12:31for about a decade and prior to the pandemic

2:12:34no significant systematic budget changes have been made.

2:12:37Yes the situation has been made worse by the cove 19 pandemic

2:12:41but any attempt to imply that everything would be would have

2:12:44been OK if not for the pandemic or that our city is no worse

2:12:47off than any other jurisdiction that has been impacted

2:12:50by the pandemic is just plain misleading at the last city

2:12:54council meeting two weeks ago in May your consultants presented

2:12:58the strategy they plan to use to help you make decisions about

2:13:01budget cuts a plan not yet begun nearly eight months after

2:13:05the public disclosure of Elsa financial challenges the trend

2:13:09loans have been increasing over the years from

2:13:12three point five million in 2011 to 9

2:13:14million software this year and

2:13:169 million loan is enormous when seen against an annual budget

2:13:21of 40 million.

2:13:22This routine of seeking even larger bridge loans to meet

2:13:25financial obligations at the end of each fiscal year

2:13:28should not be business as usual.

2:13:30Now we have the news that your regular lender has refused

2:13:33a loan this year and if you are granted loan

2:13:36from some other source the costs and interest are likely to be

2:13:39significantly higher than before possibly

2:13:42amounting to several hundred thousand dollars.

2:13:44We will be watching to see if this cost gets

2:13:46as much discussion as the funds needed to maintain a library

2:13:49hours when five members of management were getting

2:13:52and now suspended auto allowance and no one

2:13:55was required to document the expense by recording

2:13:57or reporting actual mileage the allowance was approximately

2:14:01three hundred dollars a month per person

2:14:03and for the city to break even at this rate.

2:14:06Those staff would have to be driving an average of 30

2:14:09miles per day on city business.

2:14:11Every working day of the month also those emergency reserve

2:14:15fund is at it at or below zero at

2:14:17present That is the end of the time

2:14:22for this these public comments from Diane Brenner.

2:14:25I will move on to the next submission here.

2:14:31All of these will be added to the supplemental materials

2:14:35that we can view them in the future That is correct.

2:14:39Next comments are received by every share

2:14:41now starting his time.

2:14:42Now I am glad to see that this year

2:14:45the council is participating in the budget process.

2:14:48On June 4th 2019 the council approved

2:14:50the Kaffir as a consent item.

2:14:52Then on a motion by Mr. Lyman and a second by Mr. DOE.

2:14:56The council unanimously approved without any discussion.

2:14:59The 9 million payday loan.

2:15:01This year's document raises questions section to use

2:15:04is that the max maximum interest will be 5 percent.

2:15:08I noted that 5 percent plus fees is a lot more than the one

2:15:11point 5 of Mr. Lyman's calculator calculation

2:15:15each seventy one.

2:15:16What does this mean.

2:15:17The underwriters discount on the purchase of the note

2:15:20shall not ex thirty three point five of the power amount

2:15:23of the notes What is the potential cost

2:15:25to the city at that discount.

2:15:29In detail how were the cash flow projections computed.

2:15:32You really think that the 2021 sales tax amount will be larger

2:15:36than the 2020 amounts Why is the June 20 21 sales tax

2:15:40amount projected to be more than five times

2:15:43that June 2020 amount.

2:15:45Why are total disbursement and personnel costs

2:15:47essentially unchanged year over year.

2:15:50How will you build reserves.

2:15:51Mr King do you spoke about the need

2:15:53to make the government smaller.

2:15:55Now is the time to publish your proposal a page a twenty one.

2:16:00I notice that for calipers the discussion omits the fire

2:16:03department classic plan.

2:16:05Is that a material error.

2:16:07If the city does not get the payday loan

2:16:09it will not be able to pay all of its bills

2:16:11in July and August.

2:16:12Can the Council publicly disclose the city's contingency

2:16:15plans submitted by Irish now now to read the resident

2:16:24The third comments emitted are received from Kathy handbills

2:16:27starting her time now that this item is even on the agenda

2:16:32shows that shows the public that we were not on the right track

2:16:36before Kovac 19 before Kovic.

2:16:38If we were on the right track we would not

2:16:40have such poor bond ratings.

2:16:42If we were on the right track the amount we were borrowing

2:16:45would be going down each year until it was it was eliminated.

2:16:48If we were on the right track a bank

2:16:50with whom we have done business for many years

2:16:52would have refused to give us a loan.

2:16:54I am attaching a spreadsheet I did on the costs of the trend

2:16:57since they started in 2011.

2:16:59You will notice that information from 2011 and 2014

2:17:03were not available anywhere online

2:17:05and I am waiting for records response for those two years.

2:17:08This chart is something I have to create

2:17:10because this information has to be Doug Doug for

2:17:13and is not accessible in a transparent manner.

2:17:15Online please notice that I put in the tentative number

2:17:19for 2020 and use the 3 percent projected rate.

2:17:23There is a reason to believe that the interest rate

2:17:25might even be higher than that.

2:17:27What this chart shows is that in the past eight years

2:17:29the city has wasted over one point

2:17:31three million dollars on loan costs.

2:17:34I can understand under certain Stark circumstances

2:17:36taking the initial loan but the plan always

2:17:39should have been to take it and then not take it again

2:17:42or at least to reduce the amount until the loan was unnecessary.

2:17:45The opposite has occurred.

2:17:47The loan amounts have increased almost every year

2:17:50and this year my conservative estimate of loan costs

2:17:53are three hundred and sixty thousand dollars

2:17:55for a city that just fought the public over one

2:17:57hundred thousand one hundred thousand

2:18:00dollars in library hours.

2:18:01That is an enormous waste of resources

2:18:04I hope that the city can even obtain

2:18:06this loan because otherwise I fear bankruptcy

2:18:08is around the corner.

2:18:09If we do get get it then long term planning

2:18:12needs to be done around how to eventually eliminate the need

2:18:15for the loan the city function for years without it

2:18:18but now has taken it on as a cost of doing business.

2:18:21Even if we get it this year the idea of getting it again

2:18:24next year seems improbable as the city's financial position

2:18:28is going to deteriorate more as a result

2:18:30of the current economic crisis there

2:18:32continues to be a lack of urgency

2:18:34even as we are on the edge of bankruptcy.

2:18:37The level of transparency and dialogue with the community

2:18:40continues to be awful.

2:18:42We should not have to be chasing down information

2:18:44from the city clerk.

2:18:45It should be readily available online.

2:18:48The city manager's report should have a financial update.

2:18:51The city should not be having public budget

2:18:53meetings at 1 p.m.

2:18:55on a workday.

2:18:56I hope that you do not continue to ignore us but instead work

2:18:59towards long term solutions and there is a chart that

2:19:02was attached that will be uploaded

2:19:04with supplemental materials and we have one additional comment

2:19:08received this comment submitted by Denise

2:19:20Sangster starting her time now.

2:19:22Members of the council.

2:19:24The city lacks credibility with its financial forecasting

2:19:27planning and data integrity.

2:19:29The current situation for the city of El Serino

2:19:31is mostly of the Council and city leaderships

2:19:33making the trend does not pass the smell test

2:19:36and needs an independent review and analysis such as the Fab

2:19:39before the council takes any action.

2:19:42Believe the city should reserve the remainder

2:19:44of the debt ceiling limits for any emergency

2:19:47such as a natural disaster.

2:19:48The city has other options available to it including

2:19:51more aggressive restructuring that it

2:19:53should pursue expeditiously instead of taking on more debt.

2:19:57Sincerely Denise Inkster that concludes our public comments

2:20:02at this time.

2:20:03Great thank you.

2:20:04Thank for those that are submitted their comments

2:20:06they're well received and I appreciate them.

2:20:11And we will now bring it back to council for comments.

2:20:18I'm looking at my fellow council members

2:20:20to see if anyone has comments that they will make

2:20:25Mr. FDLE Yeah I wouldn't say sadly

2:20:34but I think I'm gonna be supportive of this

2:20:36because I don't think there's any option

2:20:38at this point for our city.

2:20:39We need this to move on it's critical that we pay our bills.

2:20:44I primarily wanted to comment before voting on the to thank

2:20:49the citizens of El Serino for previously voting to make us

2:20:54a charter city measure V and from Measure H which together

2:21:00add up to 2.5 to 3 million dollars probably coming

2:21:04into our coffers and if our citizens had not voted for that

2:21:08and I worked on both of those campaigns

2:21:11we'd be in dire even more dire straits than we are now.

2:21:14So I want to thank them for that.

2:21:17I think it's critical now know that when I was

2:21:20out on the hustings working through those two measures

2:21:24I said they were for to build our reserves

2:21:27and for our fire management issues

2:21:29and that's the reason that those measures occurred

2:21:32in the people but not the only reason but one of the reasons

2:21:36so reserves are something we all care about.

2:21:38I know that all the council people care about it

2:21:41and we have to get to a place so that we can start building

2:21:44those reserves and taking care of our immediate disaster needs

2:21:48here and also read out.

2:21:50So I'm gonna vote for this.

2:21:52You have a lot of work.

2:21:53It's not going to be easy.

2:21:55I hope it compounds the high road that we have to walk.

2:22:00But we can make this we can do this.

2:22:03Thank you Any other comments at this time.

2:22:08Sure Rochelle and then Gabe I just

2:22:12wanted to clarify for the public because I was afraid that there

2:22:15might be some confusion as to why there was a one o'clock

2:22:18meeting that was to mainly accommodate my schedule

2:22:22and I can't remember able some schedule

2:22:25and I know I've mentioned before but I can not stress enough

2:22:28that I am teaching my kids in the morning

2:22:32and I've been doing that for the last several weeks.

2:22:34They'll actually be out of school next week

2:22:36but I'm still taking care of them in the mornings.

2:22:40Well my husband works.

2:22:42I work at the hospital on those evenings

2:22:46and that Tuesday is my one day off

2:22:49and I will be spending that whole afternoon meeting.

2:22:52So it's just letting the public know

2:22:54that that's how I'm juggling was loaded schedule

2:22:58and is that out there.

2:23:05Mr. FDLE and then gave it looks like you

2:23:08speak after Paul went sorry.

2:23:13GABE It looks like you want to go thank there.

2:23:17I just would like to say dealing with this.

2:23:21It's been very very difficult but I

2:23:23want to thank everyone working together to get this done.

2:23:28And I hear and I've read every e-mail I have listened

2:23:32to every email that that has been sent to us and to me

2:23:39personally so but we are committed to get this done.

2:23:43Committed I will be supporting this

2:23:46because yes I agree with Paul.

2:23:48There's nothing else that we can do.

2:23:50So I want to make sure that we get this through.

2:23:53So I will be supporting that but.

2:23:56Email said I heard this evening.

2:23:59I know that I hear you and Doug.

2:24:02I will work with my colleagues to make sure that we

2:24:05make those necessary cuts.

2:24:08These cuts need to be done and they will be done.

2:24:11And and know that we are committed

2:24:14to making sure that that we will live not beyond our means

2:24:19any longer.

2:24:21We can't have this year after year after year

2:24:25and But I also understand why it's been done year

2:24:29after year after year as well.

2:24:32Because looking at the cycle when we get our property taxes

2:24:38and to survive those last two months of it

2:24:43would be very very difficult to get this scale

2:24:47a business done without that trend.

2:24:50So you know I know all the other cities in the region

2:24:54are doing this trend as well and I wish them luck as well.

2:24:59So I know that with the e-mails that have been sent

2:25:05and especially this saved day we hear you

2:25:08and we will make sure that you make these necessary cuts.

2:25:12Thank you.

2:25:17Janet I don't know what happened to my picture.

2:25:21It seems to come in and out that the thing I wanted to really

2:25:27stress was that I was around when the trend got set up

2:25:32in the city and it was set up we were told because of the cash

2:25:39flow problem created by our getting our income in you know

2:25:46not on a regular basis like the same amount every month

2:25:50that rather you know property tax

2:25:53which comes in basically twice a year most of it comes in.

2:25:58As I understand in November and sales tax revenue which is is

2:26:02at quarterly I believe I can't.

2:26:05Karen is that quarterly sales tax monthly.

2:26:09We get some monthly payments for sales tax

2:26:11but up at the big payments.

2:26:12I mean the majority of it comes in

2:26:15orderly perfect for property for property tax it's twice a year.

2:26:20First sales tax we do.

2:26:22We get it.

2:26:23As Mark explained earlier it's like a month behind the month

2:26:26that it is charged the but the other thing.

2:26:34I followed it north of transporting authority

2:26:37the sales tax revenue but the concept is really

2:26:41the same of when it comes in.

2:26:42It's a function of people buying things

2:26:45and there are certain times of the year when they buy more

2:26:48than other times of the year which also

2:26:51contributes to our not having the same amount

2:26:54of income every month.

2:26:56And when we originally set up the train which

2:27:02was for a lot less money it was just cover that one concept

2:27:06so that we would be able to pay our employees

2:27:10for example every month.

2:27:13And because they expect to be they

2:27:16work let's say let's say they work

2:27:18full time they expect to be paid full time each and every month.

2:27:22In fact I think it's the law.

2:27:24So and what has happened I think that I find pretty upsetting

2:27:30is that we've moved out of that into an expansion of what we're

2:27:35doing as a city and I think that what we need to do as we look

2:27:42at the cash flow analysis that we're supposed to get

2:27:46is to to really look at it and say you know well if we can't

2:27:52reduce it so that we're not negative

2:27:57then we need to reduce something somewhere

2:28:01and we really need to concentrate

2:28:03on what is that something some and Where is it.

2:28:06And it's it's not going to be a fun thing to do.

2:28:12But I think it is a necessary thing to do

2:28:15and the incidents that come along like culvert you know

2:28:21that sort of thing only make it worse They

2:28:24certainly don't make it better.

2:28:26So I think that's what we are going

2:28:28to be looking at as we do this.

2:28:31But we we do need to reduce our dependence on it.

2:28:35I actually do know of a city that doesn't do this

2:28:40and I thought I would just mention it.

2:28:41My son happens to work there and he was telling me about it.

2:28:45And the reason for But what was really interesting was he

2:28:49said they had I said why why don't you do it.

2:28:53Because everyone gets the same kind of money.

2:28:56Pretty much.

2:28:58And he said it's because they have reserves

2:29:03And so trusting that my son who's

2:29:07not in the finance department at all knew something about how

2:29:12that all works.

2:29:15That that I think is also where our answer is

2:29:20is that we do have to concentrate on getting

2:29:23our reserves up so that we can use that money to get us

2:29:28over these times when we have to pay salaries that yet we're not

2:29:33getting our sales tax revenue.

2:29:36We're not getting in our property tax whatever and even

2:29:41if we get it every month it isn't the same in every month

2:29:44of the year the amount of sales tax you know there there times

2:29:49of year when people do a lot of buying and there are times

2:29:52of the year when they don't.

2:29:53And and so variable.

2:29:56Great thank you.

2:29:58Well anyway thank you.

2:29:59Yeah.

2:30:00Yeah.

2:30:01And I want to echo the thoughts of all my council members.

2:30:05I also want to reiterate some of the comments

2:30:07I've made since December taking office of mayor.

2:30:11It's it's a process we need to work on.

2:30:15We need to work on building the reserves.

2:30:17So the comments that we got tonight are well

2:30:20deserved the reserves will allow us

2:30:24to not rely on this financial instrument as tool.

2:30:28And so we need to begin doing the cost cutting.

2:30:32And next Tuesday we will begin using the model that

2:30:35was introduced to us two weeks ago to begin

2:30:38making the hard choices.

2:30:39Council member Abel was just talking about so that we can

2:30:43correct our cash flow situation and ultimately

2:30:48build our reserve So with that I am looking for a motion

2:30:55to approve a resolution of the city council of the city

2:30:58of Alfredo approving the borrowing of funds

2:31:00for Fiscal Year 2020 2021 and the issuance

2:31:05and sale of the 2020 2021 tax and revenue anticipation

2:31:10notes an amount not to exceed eight million nine

2:31:13hundred thousand.

2:31:16Can I confirm for the record does that include the amendment

2:31:18to Section 17 for the underwriters fee which

2:31:21should read point 3 5 percent instead of three point

2:31:25five percent.

2:31:26Excellent.

2:31:26Thank you.

2:31:27Yes that would hopefully Mr. Cain tell you will add

2:31:31that to the motion Absolutely.

2:31:33Thank you sir.

2:31:37And who is the second or we got a motion by King to I

2:31:47can seconded that motion by Cato seconded by Lyman.

2:31:51Do we have a roll call please.

2:31:53Mr. Lyman yes.

2:31:55May I present FDLE Yes sir.

2:32:02Thank you.

2:32:03Council member saying yes.

2:32:05Council member Pedro Okamoto.

2:32:07Yes.

2:32:08Council member Quito.

2:32:09Yes.

2:32:10Motion carries.

2:32:13Great thank you.

2:32:15That concludes.

2:32:16Item seven a tax anticipation tax and revenue anticipation

2:32:22notes for Fiscal Year 2020 and twenty twenty one.

2:32:26And now we'll move on to item seven.

2:32:28Be city manager signatory authority signature

2:32:32of forty of this is to codify something

2:32:37we do on a regular basis.

2:32:42And current looks like you're going

2:32:45to present on this Now this goes to the city attorney Yeah.

2:32:52I thought I didn't see him stepping up to the microphone.

2:32:55I'm here.

2:32:56Giving you some chance Mr. Mayor.

2:32:59So yes I'm Skye Woodruff.

2:33:01I'm your city attorney.

2:33:02I. This will be brief.

2:33:05As you mentioned this is something that the City

2:33:07Council does already.

2:33:09You are all aware that the City Council regularly approves

2:33:13contracts and typically does that by either resolution

2:33:18or motion but as part of that action on a case by case basis

2:33:23authorizes the city manager to actually execute

2:33:26the approved contracts This is a very standard procedure

2:33:31that many cities follow and is completely

2:33:33compliant with California law.

2:33:37Separately there is a provision of the California government

2:33:40code that states that the mayor is to sign all contracts

2:33:44unless that authority is delegated to the city manager

2:33:47So this is one of these areas where there

2:33:49is some ambiguity in state law.

2:33:53We reviewed the municipal code and found

2:33:57that the delegated authority to sign contracts

2:34:00is not something that's among city managers

2:34:03enumerated powers in the municipal code.

2:34:05We also looked for a separate ordinance

2:34:07that was uncalled for five that delegated that authority

2:34:11and could not identify one.

2:34:13And so we thought that just to remove that ambiguity would

2:34:16bring forward an ordinance and the City Council

2:34:19to add a provision to the municipal code that clearly

2:34:24delegates the authority to sign contracts to the city manager

2:34:28so that they can meet some city will continue to execute them

2:34:32as we have always done rather than having the mayor execute

2:34:35all contracts as written staff report states

2:34:39I just wanted to reiterate this is not

2:34:42a change in your procurement policy

2:34:46or the established authority for the city manager

2:34:49to make purchases of goods and services

2:34:53and it does not change the times that we will

2:34:57be coming back to the city council

2:34:58to actually approve contracts.

2:35:00All it does is clarify the existing practice of the city

2:35:06manager executing contracts rather than having

2:35:09the mayor execute them.

2:35:10So the staff recommendation is to introduce by title

2:35:15and waive further reading of an ordinance to add section two

2:35:18point to 1 2 4 0 to the municipal code

2:35:22regarding the city manager signature authority.

2:35:24And I'm available for any questions

2:35:26that the council at this time I want to remind viewers at home

2:35:31that if you have any comments public comments on the site

2:35:33of this excellent time for you to submit them as we will be

2:35:37reading comments on this item after we take questions

2:35:41from the city council.

2:35:43Mr. fidelity Do you have questions now.

2:35:46One I'm here.

2:35:49I'm yet I've seen this around and when I worked in part they

2:35:53had this far general manager but there was a money

2:35:55amount associated with it.

2:35:57And when I inquired at the city I

2:35:59heard that there was a forty five thousand

2:36:01dollar anything below that she could sign without the mayor.

2:36:07I'm saying that anywhere in the documents

2:36:09is there a reason for that.

2:36:11So this was actually related to the last point

2:36:13that I touched on briefly.

2:36:15So there are two there are two separate issues.

2:36:18One is who has the authority to sign a contract

2:36:21and what contracts require that can the city

2:36:26manager authorize for spending without coming

2:36:31to the city council.

2:36:32So the city council has adopted a resolution

2:36:35that says contracts for the purchase of goods and services

2:36:40up to forty five thousand dollars the city manager can

2:36:43approve without having to bring THEM TO THE CITY

2:36:45COUNCIL If they're more than forty five thousand dollars

2:36:49then they have to come to the city council for approval.

2:36:53Separate from that there is an issue of who

2:36:56gets to sign the contract once it's approved whether approved

2:37:00by the C manager or the mayor.

2:37:03And that's what this ordinance touches on

2:37:05is that second issue of who actually signs it once it's

2:37:08approved so the the money threshold is a question of

2:37:13does it require City Council approval or not.

2:37:15In other words do we have to bring it to the council

2:37:17to authorize and what this ordinance tonight touches on

2:37:21is who actually gets to put their signature on the contract

2:37:23once it's approved.

2:37:25And as part of that what I could say

2:37:27is the forty five thousand dollars of course deals

2:37:29with purchases of goods and services

2:37:32whereas this ordinance applies to any contract

2:37:34regardless of even ones that don't have

2:37:36anything to do with purchases.

2:37:39Thank you That Paula that we raised it to forty

2:37:46five thousand dollars I believe by ordinance about

2:37:49or by a resolution about two years ago sky

2:37:54I think maybe even been a year ago two years ago

2:37:57I'm not sure it's in that timeframe.

2:37:59It was before I became city manager.

2:38:02About about eight months before you became city manager

2:38:05I recall should have been about back about May two years ago

2:38:16So Any other questions at this time.

2:38:21Abe shaking his head Rochelle shakes her head.

2:38:24OK.

2:38:25The only unseated I have one.

2:38:29No Mr. FDLE cleared me I was gonna just ask

2:38:32you the same question Mr. FDLE did just to make sure

2:38:34that clarity between the two actions that we've taken

2:38:40as this city council this one and the one

2:38:42with forty five thousand are there any public comments

2:38:46on this matter.

2:38:48We do not have any public comments on this item.

2:38:50Right.

2:38:51Since no one has questions and probably no one has comments.

2:38:56It'd be great if I could get a motion for the approval

2:39:01of an ordinance of the city of L. Doe adding section two

2:39:04point one two point 2 4 0 to the Reno

2:39:07municipal code regarding city manager

2:39:09signature authority and land.

2:39:12Second just reiterate that the motion is to introduce by title

2:39:15and wait for the reading.

2:39:16OK a US entered the forward tunnel.

2:39:19And are you accepting that friendly moment friendly

2:39:22amendment Ms Perdue Okamoto.

2:39:25Right.

2:39:26And the second was Quito.

2:39:28Yes.

2:39:28Great civil.

2:39:30And we have a motion a second.

2:39:32Can we have a roll call please.

2:39:34Mayor Lyman.

2:39:35Yes please.

2:39:36May I pretend that I abstain.

2:39:41Council member able thing.

2:39:43Yes.

2:39:44Council member Patty Okamoto.

2:39:46Yes.

2:39:47And some member Quito.

2:39:48Yes.

2:39:49Motion carries.

2:39:50Great.

2:39:51Thank you.

2:39:54That concludes Item 7 B submitted

2:39:57your signature gaudy ordinance.

2:40:00Brings us to them 7 c adoption of a Memorandum

2:40:04of Understanding between the city of El Salvador

2:40:06and they also read a public Safety Management Association.

2:40:09Battalion Chief.

2:40:10Unit and I see Alex your visible.

2:40:16You stepped off like Yes.

2:40:18Good evening Mayor and members of the city council.

2:40:21My name is Alexander Graham our guest.

2:40:23I'm the assistant city manager and acting

2:40:25human resources manager.

2:40:27I have before you this evening a request

2:40:30to adopt a resolution approving an agreement between the city

2:40:34and the El Serino public safety management Battalion Chief

2:40:37unit to modify salaries and create a new M.O.

2:40:42This unit represents four battalion chiefs and fire

2:40:45department so as you may remember the City

2:40:49Council approved a two year agreement with this unit

2:40:52back in August 2017.

2:40:54That agreement was from July 1st 2017 through June 30th.

2:41:00Twenty nineteen.

2:41:01So in the time and sense that expiration the city

2:41:05has been in process negotiating with representatives

2:41:09of this unit to discuss a successor m o u.

2:41:13And just for your information And as a reminder

2:41:16the ammo use of both local tall 30

2:41:19and the battalion chief unit are typically consistent.

2:41:24The battalion chief unit has clearly recognized the city's

2:41:28current fiscal condition and has forego

2:41:31any cost of living adjustments both for 2019 and for 2020.

2:41:37So here are the highlights of this m

2:41:40are you that are to end June 2012 to effective July 2019.

2:41:46There will be a zero percent love that

2:41:49means no salary increases in July 20 20

2:41:53there will be no salary increase again and in July 2021

2:41:58there will be a three percent increase.

2:42:01Effective July 2019 the uniform allowance

2:42:05will be increased from seven hundred

2:42:07and twenty five dollars to eight hundred

2:42:09dollars per fiscal year.

2:42:11Effective this July 2020 this number

2:42:14will increase to a thousand dollars per fiscal year.

2:42:19Lastly be similar to local twelve thirty similar

2:42:24to local twelve thirty excuse me the cash in lieu benefit

2:42:27provided to bargaining unit members that

2:42:30have medical coverage through another health plan will be

2:42:33adjusted to three hundred and fifty

2:42:35per month for employees hired after December thirty first.

2:42:39Excuse May 20 20 or existing employees

2:42:43who have discontinued the discounts

2:42:45the city's medical coverage at a later date.

2:42:48Those who currently receive a cash only benefit

2:42:51will be capped at the current contribution

2:42:53rate at around seven hundred ninety three dollars per month.

2:42:58So with respect to the fiscal impacts

2:43:01the total cost savings to the city by the unit foregoing

2:43:05the 3 percent COLA in July 2019 is thirty eight thousand five

2:43:10hundred twenty two dollars.

2:43:12And that savings will be realized

2:43:14in this current fiscal year that room the totals cost savings

2:43:18to the city by the unit foregoing a 3 percent

2:43:21COLA and July 2020 is also thirty eight thousand five

2:43:25hundred twenty two dollars and that

2:43:27will be realized in the next fiscal year 2020 2021.

2:43:32The total cost to the city by the unit receiving a 3 percent

2:43:36COLA in July 2021 is thirty eight thousand five

2:43:40hundred twenty two dollars and that cost

2:43:43the city will be realized in fiscal year twenty twenty

2:43:46one twenty twenty two.

2:43:49So in closing on behalf of the city

2:43:51I'd like to personally thank the battalion

2:43:53chief unit for their collaboration

2:43:55during this complex time.

2:43:58Just so you know the city was bargaining with this unit.

2:44:01Well before the spring in which everything has happened.

2:44:06Here and globally.

2:44:07And so Cannon and myself really appreciate

2:44:10the leadership that they have shown

2:44:12in stepping up at this time.

2:44:14This concludes my report and I'm available for any questions.

2:44:17Thank you.

2:44:20Great thank you for that presentation.

2:44:22I have any questions for Alex this time.

2:44:25She gave shaking his head OK.

2:44:34And thank you for the presentation.

2:44:37Don't have any questions either.

2:44:40So at this point I suppose we go to see if there's

2:44:43any public comment so ask people to submit

2:44:47their comments at this time if they're going to do so.

2:44:51And we have not received any public comments on this item.

2:44:59All right with that we'll bring it back for comments.

2:45:05I'm sure there are some comments Let's see.

2:45:09Janet you're not muted so I'll come to you

2:45:11first and then Alex and Gabe.

2:45:12Gabe your next I know I don't think I have any comments

2:45:17on this item I understand.

2:45:20OK.

2:45:22Anybody else have comments.

2:45:25Rochelle it's important to you also.

2:45:30Thank you.

2:45:32For making the bargaining table.

2:45:36Manner and really put the city at this line

2:45:43and it's the work right.

2:45:45Neither do I know we're going to have very difficult days

2:45:51and are one of the front lines are

2:45:55just invaluable at this point.

2:45:57Thank you very much sir.

2:46:03Bull yes did on that for me the wildfire season

2:46:07is about to begin maybe a hotter year than we've ever had.

2:46:11Thank you for the abatement efforts at your conducting.

2:46:15That's an ongoing thing you know.

2:46:17Cove it was the invisible enemy fires can be the visible enemy.

2:46:22I didn't have one question now that I'm just maybe for Alex.

2:46:26I noticed a discrepancy and wanted to see

2:46:29if it was a cost to the city.

2:46:32They will get an extra half day Christmas

2:46:35Eve holiday That's on the.

2:46:40That's in their cataclysms.

2:46:46I actually will have to get back to you on that.

2:46:48And the reason is is that I did not begin the negotiations

2:46:52until we started discussing concessions so I

2:46:56just thought about you on that.

2:46:58OK.

2:46:58I just thought something was added to what they are giving

2:47:01they are flexible on the pay but they are getting half day

2:47:05extra holiday on Christmas Eve.

2:47:08May pro tem fidelity I can on what I do know

2:47:12is that that would be consistent with every other bargaining

2:47:14unit.

2:47:15So if they had been behind that could have been just

2:47:17to bring them up to what every other what every other employee

2:47:21is thank you.

2:47:25And I will also extend my gratitude telling chiefs

2:47:30for taking this action at this point through our negotiations

2:47:37with our different labor units We are not having

2:47:41any pay raises in the calendar year 2020 so

2:47:48that that is something that we're working towards

2:47:52and we still have some additional outstanding

2:47:56contracts to do.

2:47:58But we're working on this potentially

2:48:01might be a good time for me to report

2:48:03out from our closed session.

2:48:05We did give instructions to our negotiators

2:48:10as a result of our closed session today.

2:48:12And so we are continuing to negotiate

2:48:16with other units and grateful for all of our labor units

2:48:25understanding the fiscal situation

2:48:26we're in if you took your mute off so

2:48:31that indicate you want to speak I

2:48:36am getting ready for the vote.

2:48:38Okay.

2:48:39Good.

2:48:40I like your.

2:48:41I like your proactive stance I'm going to read the resolution.

2:48:45I'm looking for a resolution a motion

2:48:47to approve a resolution of the city council of the city

2:48:50of Eldorado to adopt a memorandum

2:48:51of understanding Public Safety Management

2:48:53Association bargaining unit.

2:48:55Battalion Chief Second move by Purdue

2:49:01Okamoto seconded by Ableton.

2:49:03Can we have a roll call please.

2:49:06Naming yes definitely yes.

2:49:10Council member opposing yes council

2:49:13member of that committee.

2:49:14Yeah and some member can tell yes.

2:49:17Motion carries.

2:49:24Great thank you That concludes.

2:49:26Item seven.

2:49:27Senior adoption when I met you between Ellis Reed

2:49:30and the Osorio Publix battalion unit

2:49:35will now go on to item seven D. Management

2:49:37confidential employee helpers contribution resolution again.

2:49:44This is Alex.

2:49:45I have before you another item which is a request

2:49:52to adopt a resolution one requiring management

2:49:56and confidential employees who are defined

2:49:59as classic and pepper calipers members

2:50:02and employees to be required to pay

2:50:05an additional 1 percent into the required employer

2:50:08calipers contribution.

2:50:10Excuse me.

2:50:11I actually think I forgot that the mayor should have

2:50:15announced the item I apologize.

2:50:17Do you want to go back to that.

2:50:20I did announce the item.

2:50:22You know what Alex.

2:50:24What.

2:50:24What I'm sure Holly really wants me to do is make sure

2:50:27that people know that this is the opportunity to submit

2:50:29their public comments and that we will be closing

2:50:34the public comments soon so that all they said to you

2:50:38sent you a text it was ME AND YOU OFF AND I STARTED anyway

2:50:45I will continue.

2:50:47So implore scalpers contribution for a total of 9 percent

2:50:52or calipers classic employees and 13 percent for pepper

2:50:56employees or 50 percent of the costs whichever is greater

2:51:00affected the first pay period of July 20 20 Secondly this also

2:51:06authorizes the mayor to sign an addendum to the city manager's

2:51:10employment agreement requiring an additional 3 percent

2:51:13contribution on into the required employer

2:51:17calipers contribution for a total of 11 percent.

2:51:20Also effective the first pay period in July 20 20.

2:51:24So as you remember at the last council meeting on May 19

2:51:28the City Council approved the most recent update

2:51:31to the management and confidential resolution

2:51:34which also applied to the city manager herself.

2:51:37This included a number of changes that provided cost

2:51:40savings to the city including not implementing

2:51:44a cola at a savings of approximately one hundred

2:51:47eighty one thousand dollars.

2:51:49Implemented and furloughs for next fiscal year at a savings

2:51:52of approximately three hundred forty six thousand dollars

2:51:55and implementing furloughs through this fiscal year

2:51:58and a cost savings of eighty thousand dollars Oh and lastly

2:52:01suspending the car lines to just as background

2:52:06park for her calipers Harper spelled PPR A

2:52:11stands for the California Public Employees Pension Reform

2:52:14Act of 2013 and those members are defined

2:52:19as those joint calipers on or after January 1st

2:52:232013 who either had no prior membership

2:52:27in another California public retired tournament system

2:52:31or did have prior membership but did not actually

2:52:34have reciprocity calipers.

2:52:37Those who joined calipers prior to June or January

2:52:401st 2013 who were then hired by a different calipers

2:52:45agency following a break a service six months or more

2:52:48are also considered Hebron employees.

2:52:52They are the total ongoing savings to the city

2:52:55and management confidential employees contributing

2:52:58an additional 1 percent is sixty nine thousand one hundred

2:53:02and sixty nine dollars for the city manager con contributing

2:53:07an additional 3 percent savings is

2:53:09approximately seven thousand three hundred

2:53:11and twelve dollars.

2:53:13These savings will begin in the next fiscal year fiscal year

2:53:172020 2021.

2:53:19With that said This concludes my report

2:53:21and I am here for any questions you may have.

2:53:24Thank you.

2:53:27Any questions.

2:53:31All.

2:53:31And then Janet and Alex both are ongoing those down.

2:53:36And after one year is that correct.

2:53:39Those will be with us for a while.

2:53:42They will be with us for ever until we decide to amend again

2:53:49and I should also note may I pretend

2:53:51that you know as the costs increase

2:53:53it's percentage it's not.

2:53:54I mean these costs are what would

2:53:55be reflective of the current salaries

2:53:58as purse costs increases salaries go up or down.

2:54:01That would be reflected of that percentage.

2:54:04Helpful.

2:54:04Thank you.

2:54:08I. Janet you had looked like you I reached Ted.

2:54:12Yeah I just had a simple question maybe

2:54:15simple I know we were at one point not very long ago keeping

2:54:20a running balance of how much reduction we had made in cost

2:54:26and I'm just wondering if you are still doing that

2:54:29and what that number is in terms of just the reduction You mean

2:54:36the reduction time management and confidential endpoints

2:54:39No I mean the whole nine yards to the city

2:54:43budget at this point.

2:54:47COUNCIL MEMBER We are like with with these with all of the cuts

2:54:51that we have provided to you prior on April 7th in addition

2:54:55to all of the bargaining units forgoing their COLAs

2:54:58implementing all of these changes

2:55:00to the management confidential resolution

2:55:02as well all of the furlough up is everyone there

2:55:17It looks like all of you got cut off temporarily

2:55:19but it looks like people are cutting

2:55:21back the entire meeting rebooted for me so I it's OK I'm back.

2:55:26Let's give let's give it time to stabilize before you continue

2:55:29you were when I lost you it was in the middle

2:55:32of you telling all our savings.

2:55:36Yes and I can only I lost my pins so I don't see

2:55:41all the council members yet.

2:55:43Yeah I was just going to ask if we could do a quick soundcheck

2:55:45and sure we have everybody misalignment we know we have

2:55:48you come at me I pretended to Delhi here can't remember

2:55:54Abel's Wilson and some member and it

2:55:58does look like you are on mute.

2:56:06I don't.

2:56:07Here we go.

2:56:09And remember Ableton Are you with us stuff.

2:56:12Can you hear me.

2:56:13Yeah Yeah we can.

2:56:14You.

2:56:15I don't have a box for a picture.

2:56:19Yes I think that since I'm hosting the meeting

2:56:22for some reason the entire system

2:56:24the entire meeting rebooted had to reconnect.

2:56:27So anyway I could just talk when if you could

2:56:31just give me just a moment.

2:56:32Sorry my baby son can't remember party Okamoto.

2:56:36Yeah.

2:56:37And council member Quito.

2:56:39Okay.

2:56:39Thank you very much for that confirmation.

2:56:41Cancel my babies son Sorry.

2:56:42Please go ahead.

2:56:44Okay.

2:56:45So I didn't.

2:56:46Where's You were getting to the summary

2:56:50of the number I was looking for and then

2:56:52it crashed so I couldn't.

2:56:54I didn't get to the number yet.

2:56:56I was waiting for yes if we assert if we assume furloughs

2:57:00through the end of the fiscal year that comes to over 4

2:57:03million dollars in cuts so far.

2:57:06What you'll be discussing next week

2:57:08is the programmatic framework as to considering

2:57:12further reductions or further programs

2:57:15And when you say the end of the year

2:57:16during calendar year or fiscal year

2:57:19fiscal year which fiscal year and next fiscal year Thank you.

2:57:25You're welcome.

2:57:28Oh there I'm back.

2:57:29Sort of.

2:57:30No picture.

2:57:32All right.

2:57:35Let's see we've we've heard from two of the council members.

2:57:38Does anybody else have questions on this item No.

2:57:44OK.

2:57:46I could.

2:57:48And I sort of lost my where I was leading what I wanted

2:57:54to do was to thank everyone that has

2:57:59given up something on our staff which is was wasn't everybody.

2:58:04Or I'm seeing a nod yes everybody has chipped

2:58:10in you might say and supported getting through this very

2:58:15rough period of time and I really want to thank all

2:58:20of our employees for their part in that

2:58:23because I think it's a big deal and I truly

2:58:27appreciate what you're doing for our city

2:58:30and the residents of our city.

2:58:32Thank you.

2:58:34And I echoed that sentiment.

2:58:38Are there any public comments on this item.

2:58:43We do not have any comments on the site.

2:58:46Great bring it back to council for any additional comments.

2:58:51Seeing none.

2:58:53I believe it's a no go Yes.

2:58:56Thank you.

2:58:58My comment is thanking I just want

2:59:01to thank everyone on management and confidential employees

2:59:07tend to know.

2:59:10To appreciate you're making this decision

2:59:15I know that you have to have counsel.

2:59:21This is a huge way of making sure that we

2:59:28we get things together so again.

2:59:31Thank you to management on Yep.

2:59:36Rochelle and I would like to echo

2:59:40what council member decided it wanted

2:59:43to thank you all very much.

2:59:44And we know that what we have coming ahead of us

2:59:51in the future.

2:59:51Not too distant future is dealing with this issue rising

2:59:57pension costs and so to be proactive on this

3:00:01and really show leadership on this.

3:00:03I really appreciate it.

3:00:05I know This is not the last time we're going to be talking

3:00:07about pensions in the next few years

3:00:11and I just wanted to recognize that I appreciate you being

3:00:17forward thinking in this and hopefully we can all come up

3:00:21with solutions together so that everyone can maintain

3:00:24their pensions and have a great retirement when it

3:00:27comes around Great thank you.

3:00:33All right now I'll be seeking them.

3:00:36Motion to approve a resolution of the city council.

3:00:39The city of El Cerrito to adopt Memoranda of Understanding

3:00:41with public Safety Management Association.

3:00:43I read that one already made the right one we're in not 7C.

3:00:50All right sorry the resolution is a resolution of the city

3:00:56council of the city of LS read over requiring management

3:00:58and confidential employees to be required to pay an additional 1

3:01:01percent into the required employer of California Public

3:01:05Employees Retirement system calipers contribution

3:01:09and authorize an addendum to the city

3:01:10manager employment agreement requiring an additional 3

3:01:13percent into the required calipers contribution

3:01:18I heard Michelle's four voice and Paul Yule second.

3:01:22Yeah.

3:01:22Thank you.

3:01:23So it's a party Okamoto.

3:01:25Seconded by Fidelity photocopies.

3:01:29May Lyman.

3:01:30Yes.

3:01:31May I pretend fidelity I can't remember.

3:01:34Wilson.

3:01:35Yes.

3:01:36Council member.

3:01:37I do.

3:01:38Yes.

3:01:39Council member Quito.

3:01:41Yes motion carries Great.

3:01:47Thank you.

3:01:49You're getting faster reading our names.

3:01:53The.

3:01:53That concludes.

3:01:54Item seven D which was management

3:01:58confidential employee Cal pers contribution resolution will

3:02:01now move to item eight city council

3:02:04both local and regional liaison on assignments

3:02:09works through Fidelity.

3:02:12Yes I don't want to report that work TAC has frozen the fees

3:02:17that our city member cities will be paying

3:02:20this year after a discussion about the coveted nineteen

3:02:24and their various financial issues in the Bay Area.

3:02:27So we will be at the same level that we

3:02:29were last year which is a savings of about 1000 dollars.

3:02:36Great.

3:02:36Thank you Mr. Quito.

3:02:40Thank you there.

3:02:41I'd like to announce that Mr. Lyman

3:02:43and I will be out attending the zoom the Contra Costa mayor's

3:02:50conference where we will be dealing with number one

3:02:56a couple from the head of the county library system

3:03:01and we will also have a mayor of Oakland

3:03:07is on the new transportation that they'll be working on

3:03:14possibly and experimenting with CTA on autonomous vehicles

3:03:19and that will be on Thursday the fourth

3:03:25thank you Chell or Janet.

3:03:28Redraws no Janet no Brazil.

3:03:31OK.

3:03:34I think M.C. I went to a technical committee meeting.

3:03:40I think if I went to I did go to a board meeting

3:03:44and it was nothing to report actually worked.

3:03:50There was an update on an update on enrollments we're continuing

3:03:57to add communities into M.S. So M.S. is

3:04:01continuing at communities in the in Solano County.

3:04:06So that's good news for us.

3:04:08So we are pretty strong representation

3:04:11now in or in Napa Solano and Contra Costa counties.

3:04:18And there was Les's legislation update which I did send round

3:04:24to the council members on various legislation that

3:04:28is under consideration at the state level.

3:04:34And that concludes my report on C E

3:04:40and that brings us to item number.

3:04:47That concludes item number eight city council

3:04:49local and regional labels on assignments

3:04:52and brings us Item nine before we adjourn.

3:04:58Two things I would love to have a moment of silence

3:05:02to honor Mr. Floyd.

3:05:05But I also would like to report out

3:05:08and I see Mr. begonias on but we did have a conflagration

3:05:13last night in El Serino that resulted in a loss of life

3:05:21a woman who was living in a commercial building.

3:05:25And so after a moment's silence I

3:05:27would like to adjourn to our next meeting in the honor

3:05:32of this woman Mr. Begonia I don't

3:05:34know if you have a name for us.

3:05:38My Mayor Ben is Mike Pavone a fire chief.

3:05:43No we do not have confirmation on the identity of the person

3:05:50that was at that perished in that fire

3:05:52yet So would it be fair to say that in the reports currently

3:05:58she's Jane DOE is there another name that's being used.

3:06:02That would be correct Jane would be at this time.

3:06:07So at this time I'd like to start

3:06:08a moment of silence or George Floyd

3:06:28black lives do matter at this point.

3:06:31I will adjourn the meeting in honor of Jane Doe 2

3:06:36our two both our special scheduled meeting on Tuesday

3:06:41June 9th at 1:00 p.m.

3:06:44and our regularly scheduled meeting on Tuesday

3:06:49June 16th at 7:00 p.m..

3:06:52Both of those meetings will be held through teleconference

3:06:56We're adjourned in the honor of Jane Doe thank you thank you.

3:07:05Thank you.