Regular City Council Meeting March 16, 2021

0:08:10Being a regular city council meeting of the Ailsa Reno city

0:08:14council tonight at 7:00 p.M..

0:08:16Can I have a roll call please if leave here me

0:08:22if I can come to present Councilman Abelson council

0:08:31member Allison they needed you.

0:08:35We should be able to hear you now.

0:08:39Okay.

0:08:40I haven't cancel my babies and i have I needed you.

0:08:43We should be able to hear you.

0:08:45Me.

0:08:45Yes thank you so much.

0:08:47Council member Morty A council member Rep.

0:08:50Nick We have a quorum.

0:08:53Thank you before we begin I want a report out

0:08:57from our special city council at 6:00 p.m.

0:08:59tonight any of the public comments that were received

0:09:03regarding the special meeting will have been given

0:09:05to the city council members.

0:09:07Our reportable actions concerning labor negotiations

0:09:12and the redevelopment dissolution case

0:09:16can we please have information about our public comments

0:09:19for this regular session city clerk

0:09:22thank you Mayor for city council members

0:09:24and staff who are participating panelists.

0:09:26Please remember to keep your microphone muted whenever you

0:09:29are not speaking to ensure compliance with the Brown Act

0:09:32into to address security concerns.

0:09:34Attendee images and videos will remain disabled as well as

0:09:38the chat feature for all participants

0:09:40The members of the public who wish to provide oral testimony

0:09:43The mayor will announce the time for public comment

0:09:46on each applicable item if you wish to speak

0:09:49please select the hand icon to raise your hand.

0:09:52If you cannot locate the icon please refer to the docu linked

0:09:55on page one of the agenda for the race hand feature attendees

0:09:59joining by phone can dial star 9 to raise their hand when it is

0:10:04your turn to provide comments your name will be announced

0:10:07and you will be prompted to unmask yourself attendees

0:10:10joining by phone will be prompted to dial star 6 to meet

0:10:14themselves Thank you Mayor we're ready

0:10:16to move on to the next item.

0:10:18Thank you for staff and council communications

0:10:22can we have a report from our staff

0:10:23please Yes thank you Your Honor I'm Karen Pinkus city manager

0:10:30and I have several announcements this evening

0:10:34first concerning our local emergency

0:10:36related to the pandemic.

0:10:38As you all know Contra Costa has moved

0:10:40into the red tier of the California state guidelines

0:10:43which is good news.

0:10:45It means that additional businesses may open with higher

0:10:48capacity some small private gatherings are allowed

0:10:51in restaurants gyms dance studios

0:10:54and museums may reopen indoors subject to capacity

0:10:57restrictions to the operation at this time

0:11:00will remain largely the same.

0:11:03And we are grateful that more of our staff

0:11:05have become eligible for vaccines which is also

0:11:08very good news for our team.

0:11:10However today Contra Costa also announced

0:11:14that the first two known cases of the highly

0:11:16infectious UK variant were detected

0:11:20in Contra Costa County.

0:11:22It is apparently called the B 1 1 17 variant

0:11:26and I don't know if I'm saying that terminology correctly

0:11:29but it has been called the UK variant

0:11:31because it's believed to be originated

0:11:33in the United Kingdom.

0:11:35It is also more contagious than the other variants

0:11:37and possibly more deadly.

0:11:39There have also been news reports in Europe

0:11:41that Europe may be seeing the beginnings of another surge

0:11:44so this is just yet another reminder of the pending make

0:11:48is not over.

0:11:49And we still need to remain vigilant by wearing masks

0:11:52washing our hands and practising distancing you're eligible

0:11:57we encourage you to get vaccinated

0:11:59we realize the system has been challenging

0:12:01but again you can find information.

0:12:03I'll repeat these Web sites and phone numbers You can

0:12:07find information at my turn.

0:12:09Dot see a dot gov or corona virus dot C.C. health dot org

0:12:17or call 1 8 3 3 8 2 9 2 6 2 6.

0:12:22I'll repeat my term dot C. dot gov.

0:12:26Karen virus dot S.C. health dot org

0:12:30or 1 8 3 3 8 2 9 2 6 2 cents.

0:12:36I also wanted to let you all know that Contra Costa County

0:12:39is planning to hold a virtue while memorial vigil

0:12:43on the evening of Monday March 22nd to honor those Contra

0:12:48Costa residents that we've lost to cover 19 march 22nd is

0:12:52the year anniversary of the first death from Cove it

0:12:57reported in Contra Costa County as of today we have lost seven

0:13:01hundred twenty four contract residents including eleven

0:13:05of our neighbors and also Rito Cogan 19 the program

0:13:09for the vigil is still being worked out again it's going

0:13:12to be virtual but once we have confirmation on exactly what

0:13:16the program will be we will be happy

0:13:18to provide details through our outreach channels on

0:13:21social media on our calendar and on the Web site and the county

0:13:25will be doing outreach the same way as well.

0:13:28So please stay tuned for more information on that program.

0:13:33And finally I would like to announce

0:13:34that the california state auditor has released

0:13:37the report on the city Serino.

0:13:39As of today this is not on the agenda but I do

0:13:43want to give a brief report on sort of what has happened

0:13:47and transpired at this point.

0:13:49The report can be found on their Web site

0:13:52at auditor C.A. a dot gov.

0:13:55Again auditor dot see a dot gov.

0:13:59And our response is also included on their web site

0:14:01as well as on our Web site which is l dash Rio dot org.

0:14:06Again l dash Serino dot for as the council knows in February

0:14:1120 20 the Joint Legislative Audit Committee approved

0:14:14the state auditor to conduct an audit of the city under

0:14:17the local high risk program a team from the State

0:14:19Auditor's Office began working with our staff all radio staff

0:14:23to conduct the audit beginning in October twenty twenty

0:14:26the team provided the city with a draft report during the first

0:14:29week of March 20 21 and we were given five business days

0:14:33to respond to the draft report we conferred city staff

0:14:37conferred with the city council and closed session and we

0:14:40provided to the response to the state

0:14:42auditor within that designated timeframe as I stated in

0:14:46the city's response the city agrees with most

0:14:48of the recommendations provided the five risk areas identified

0:14:52by the state auditor.

0:14:53In fact the recommendations complement the actions

0:14:56that the city is undertaking right now as we had already

0:14:59identified many of the same issues within the report

0:15:01and are taking steps toward implementing changes

0:15:04to address those issues.

0:15:05However we do recognize that there are still

0:15:08areas to be improved and the city administration

0:15:10is committed to continuous improvement

0:15:12in all of our operating funds.

0:15:14The city has and will continue to make the needed improvements

0:15:17necessary to improve our operational effectiveness

0:15:21and to tackle the city's financial issues

0:15:23as the city council knows.

0:15:25In my two years the city manager I

0:15:27have had to focus on actions to restore

0:15:29the city to fiscal health.

0:15:30We are working to change the city's culture

0:15:33to become more fiscally disciplined as we're dealing

0:15:36with the ramifications of decisions that

0:15:38have been made in the past.

0:15:40The city council the city staff are now

0:15:42having to make decisions that reflect

0:15:43the need for financial responsibility

0:15:45And we will need to continue to do so.

0:15:48It took several years for the city

0:15:49to get to this point We know there is no quick fix

0:15:52and it will take time and effort on all of our parts

0:15:54to keep moving forward but I know

0:15:57the city council and the city staff

0:15:59have demonstrated we have a desire and an ability

0:16:01to put the city back on track.

0:16:03It is also important to note that the city

0:16:05has faced significant challenge because

0:16:07of the cove 19 pandemic.

0:16:09Obviously the city clearly had financial challenges

0:16:12prior the pandemic but there's also

0:16:14no doubt the city's been forced to respond

0:16:16to the impacts created by the pandemic

0:16:17both operational and financial and take specific steps

0:16:21to address the fiscal issues.

0:16:22As a result of the pandemic as well as what

0:16:25we were dealing with prior to the pandemic those fires

0:16:28next steps with respect to the report

0:16:30the city must provide a corrective action

0:16:32plan within 60 days to address the risk areas that were

0:16:35identified and we will provide updates on that plan

0:16:38to the state auditor every six months.

0:16:40I also want to note that in the discussions with the state

0:16:43auditor team regarding the corrective action plan

0:16:45they clarified that the city does not have to specifically

0:16:48implement each recommendation as stated

0:16:51as addressing the general risk area to their satisfaction.

0:16:54So in that we will be working with the state

0:16:57her team on addressing any concerns

0:16:59that they have with respect to those risk areas

0:17:02and fulfilling recommendations.

0:17:05But I also wanted to let the council public know

0:17:07that the financial advisory board is slated to discuss

0:17:10the state auditor report at their next meeting

0:17:12which I believe is April 13th.

0:17:15And I will be present at that meeting to answer the board's

0:17:18questions and we will continue to update

0:17:20the Council and the public on our progress

0:17:22in future meetings.

0:17:23So In summary the city team takes the state auditor's

0:17:27report seriously We understand we must be vigilant in ensuring

0:17:30we're able to sustainably provide services and maintain

0:17:33the focus of the city organization toward fiscal

0:17:36health And with that Your Honor.

0:17:38That concludes my report.

0:17:39Thank you thank you This is council time for statements

0:17:45and I've when I have a mayor's privilege if I can to begin

0:17:48by starting and responding my personal comments on the audit

0:17:54important important thing in our city

0:17:56there is must just say about the state audit needs to finances.

0:18:00I was actually looking forward to the state audit and

0:18:03how we might learn from it.

0:18:05And while not perfect i think the audit

0:18:08makes important insights about how we handle our city financed

0:18:12in the past and what we should be doing going forward

0:18:17As I said it's not perfect.

0:18:18I don't think it gives much detail about

0:18:20the bad practices that we've dealt with over the last decade

0:18:2512 years.

0:18:26I don't think it gives enough information about the impact

0:18:29of covered 19 in our city and other cities in the East Bay

0:18:33and I don't think it gives enough credit as our city

0:18:35manager said to what this city council on the last city

0:18:40council have done to respond to these is issues of finances

0:18:44and also But I'm glad the city has wired wisely agreed

0:18:48to either agree with or or basically agree with most

0:18:54of the recommendations that the audit has suggested that we

0:18:57undertake some of these include making structural changes

0:19:01to the city that will save money to recover more costs from

0:19:06our recreation senior and our emergency services to conduct

0:19:11a compensation study among

0:19:14comparable cities to see costs reductions

0:19:18in our fire and police departments

0:19:20and require city departments to establish budget

0:19:23safeguards against increasing costs and expenses

0:19:28without authorization.

0:19:31We need to know how and when we can respond

0:19:33to these recommendations.

0:19:34And if the city manager has the adequate staff

0:19:38and the resources to get the job done

0:19:40it's not gonna be an easy job.

0:19:42There's a lot of things that we need to do with limited staff

0:19:47I'm probably most in agreement however with a theme

0:19:50that the audit had about the past decade

0:19:53that city staff didn't really communicate as best it could.

0:19:57With the Council on financial and budget issues

0:20:02and we are ultimately responsible

0:20:04and that's why we've all taken this up

0:20:06to resolve these issues.

0:20:07Now i think we need to be better going forward

0:20:11and good news and bad news must be shared

0:20:14with city council members.

0:20:15So I look forward to the coming weeks working with staff

0:20:19getting more public input and working

0:20:21to make the tough decisions in this next

0:20:24fiscal year So thank you for the time.

0:20:27Is there any other council member

0:20:28that would like to make any comments

0:20:30before we proceed with our council I would

0:20:33be yes Mayor Pro Tem kindle.

0:20:37Thank you Mayor Del.

0:20:39Now the council this California State Auditor

0:20:42posted finding some else to read encouraged else to read

0:20:46a resident to support Austell measures that I have been

0:20:50asking for since 2018 We are one of the highest taxed

0:20:54cities in the state california at ten point to five percent.

0:20:59If we have no reserves for an emergency like what we're going

0:21:03through right now a pandemic and a recession

0:21:07we're all experience at now many years of mismanagement

0:21:12starting at the last recession constant overspending

0:21:17not preparing for funding up calipers unfunded liabilities

0:21:21and spend all of our reserves is not good.

0:21:25Government the majority of cities in Contra Costa

0:21:28as I said time and time again need their governments

0:21:31smaller at the last recession starting at the last recession

0:21:35and started to save money on four reserves rainy day

0:21:39fund funding for calipers and unfunded liability.

0:21:43Elsa read out did not do that and opted for big government.

0:21:47Good government is living within our means

0:21:50and this city will do the work that

0:21:52needs to be done We have no choice but to follow

0:21:56the findings and change the course of how government

0:21:59is run in else to read out.

0:22:01I look forward to working with city manager Karen Pinkus Mayor

0:22:05fidelity and our council members to make

0:22:10sure we change the course of what's going adults.

0:22:13Frieda thank you so much.

0:22:16Thank you for listening.

0:22:18I also wanted to make some notes of announcements

0:22:23on some of the Ouija boards that I attended.

0:22:26Should I do that now mayor or yes please wait oK.

0:22:31I attended I'm part of a special group of elected officials

0:22:36with Cal city's and the group ask me to be part in advancing

0:22:43racial equality group and that is a group of two members

0:22:48from each of the different departments

0:22:51that the League of California exists from Police Chief fire

0:22:55chiefs city managers mayors and council members as the at

0:23:00large member of Cal cities representing the 400

0:23:04seventy seven cities we meet.

0:23:07We plan to make sure that we create more equity and more

0:23:14racial equity more inclusion to represent

0:23:19what California looks like now.

0:23:22I also wanted to let folks know that I attended I'm on another

0:23:27new committee that the president of the League of Cities

0:23:30and executive director asked me to part of and that is how

0:23:35cities governance board and this small group of 11 part

0:23:41of the part of that group we will be looking

0:23:44into the california cities itself to make sure we are

0:23:51creating good government and good governance within

0:23:55the League of Cities which is our lobbyist group and all

0:24:00of the 407 7 cities in Calif you belong to so I want to let

0:24:06folks know about again taking their thank you any other

0:24:11council member comments council member Rodney

0:24:17thank you mayor and I'll keep

0:24:19it really brief.

0:24:20I want to assure the public that on council we

0:24:25will be very involved in the budget process going forward

0:24:29this I I really appreciate my colleagues with a very

0:24:34unify message and yes this is a moment of unity

0:24:37because we have to make it through but also I want to be

0:24:40a little bit more of a cold splash water which is this is

0:24:43our reality and I don't want to sugar coat

0:24:45this I don't want rose colored glasses This is the budget

0:24:48reality that the city's in and this is

0:24:50what we have to move through.

0:24:52Thank you council member Marta i did

0:25:08want to report out that I attended the executive board

0:25:12for the East Bay economic Development Alliance

0:25:15as my first time.

0:25:16Participating in that and it was really great to to hear more

0:25:21about the economic situation that you say in the work

0:25:24that the East Bay Economic Development Alliance is doing

0:25:27to provide policy information and data

0:25:31so if anyone's interested in kind of the impact of coping

0:25:34for example they can go to the East Bay

0:25:37economic development alliance Web site

0:25:39for those kinds informations.

0:25:41I also attended the Human Relations commission

0:25:44and the economic development committee as liaison

0:25:46and again I want to really appreciate all the volunteer

0:25:50time that our residents put into making our city more equitable

0:25:55more prosperous.

0:25:57And in a really hopefully recommend

0:25:59that anybody that's really interested about what's

0:26:02going on in the city not just to come to council but the 10

0:26:05some of these boards and commissions

0:26:07to seek kind of granular level what's going on

0:26:10and I'd like to echo council member Ruddick to say that yes

0:26:14we are in really bad shape financially

0:26:18and that's why we're here to work it.

0:26:21I think that there's just a lot of work to be done

0:26:23and you know i hope that as many people as possible

0:26:28attends the community outreach meeting in April for the budget

0:26:32discussion because what partly what

0:26:39the priorities and the financial condition that we're in right.

0:26:43Thank you thank you.

0:26:46Council member council member wilson you're on you're

0:26:50on new Janet oK.

0:26:57There we go.

0:26:58We can oK.

0:26:58Thank you.

0:27:00I would like to agree with my fellow council members

0:27:03in saying that we are at a serious point in our city

0:27:07with finances and i think we're going

0:27:10to be all working together.

0:27:13I certainly am going to be part of that to try to resolve all

0:27:18of the question of problems with our finances

0:27:24as quickly as possible but also doing the things that won't be

0:27:29things that we can accomplish quite so

0:27:31quickly that will take time and so we're

0:27:34really for the long haul.

0:27:36I think and I know I certainly deal that way about so i just

0:27:43want to I'm not going to repeat anything anyone said

0:27:46but just to say that I'm in agreement with what's been said

0:27:51and the on what seems like a frivolous note

0:27:59but it isn't really I met with a group of people

0:28:04who were interested in best brunches

0:28:08and putting up best benches.

0:28:10So that people who wanted to go around town

0:28:17but needed a place to sit.

0:28:21So not necessarily bus stops.

0:28:23But somewhere could have that could have that.

0:28:26So we've talked a lot about that we talked about some work I've

0:28:31done at a national level on the topic

0:28:35and i'm not sure if that will lead to anything

0:28:40but hopefully it will but anyway, they I

0:28:44think we're going to take it to the comments that were

0:28:48made to the Committee on aging.

0:28:51So I just wanted to mention that.

0:28:55And our also at the recent Contra Costa cup excuse

0:29:01me i met with a group of people from contract.

0:29:05The contract costa County climate leaders group and I

0:29:11was the introductory speaker there so that was

0:29:18a really interesting program.

0:29:20I think and What else did I think.

0:29:27Those are the main things I think I'll mention today.

0:29:31So gone on tour the regular part of our meeting.

0:29:34Thank you.

0:29:35Thank you move on to the oral communications from the public

0:29:40now.

0:29:41And at this time, members of the public

0:29:44who wish to provide public comments regarding matters

0:29:46not on the agenda consent items and presentation items should

0:29:50use the Raise the hand feature to request just

0:29:53speak city clerk.

0:29:55Can we proceed please ma'am.

0:30:00I am going to call a couple of speakers

0:30:02before we open up to general public comment

0:30:04as we have a couple of proclamations on our Consent

0:30:07Calendar tonight which in normal times outside of Kirkwood

0:30:11we would be inviting these individuals up to the dais

0:30:15to speak on behalf of acceptance of those proclamations

0:30:20so the first speaker.

0:30:21I'm going to invite to speak is Rabbi Yankee Belle who would be

0:30:26speaking regarding the proclamation recognize

0:30:29education in Shirley Bay rabbi getting you

0:30:33permission to mute you should be able to unmute

0:30:36yourself and provide comments at this time are you

0:30:44there looks like we may have lost

0:30:52and looks like he may have dropped off the car at up there

0:30:56you are great.

0:30:57We can't hear you.

0:30:58Go ahead and go ahead and proceed.

0:31:00Thank you so much.

0:31:02I am a if I understand correctly,

0:31:05the proclamation was not yet mentioned this evening

0:31:09This is the time when we take public comment on any of items

0:31:13that are just i will just be forcibly saying this is

0:31:16in connection with the proclamation

0:31:18that Will and the spoken about tonight

0:31:23and honoring the publisher.

0:31:24I began, I mean, I mental citizen and who's and who's

0:31:31I'll speak about a media moment and about education

0:31:34and Sharing Day which will be and March 24th.

0:31:38And so rita.

0:31:40So I just wanted to say as follows

0:31:44and the i'm Bill Maher and city manager city council

0:31:50members i thank you for this.

0:31:53I thank you for this opportunity.

0:31:56And then on behalf of our city and for you

0:31:59and for taking the attention to proclaim education Sharing

0:32:04Day and also Vito i mean,

0:32:06I have a mental illness blessed memory known as the uAB became

0:32:10the leader of the battle banished movement in 1950

0:32:14while he concentrated his efforts on rebuilding

0:32:16and energizing the global jewish community after the devastation

0:32:19of the Holocaust he paid great attention to the needs of all

0:32:23of humanity that resolution states that the rabbis and both

0:32:29the rabbis birthday has been proclaimed for over 40 years

0:32:32now and national and in many and in many other many states

0:32:37and many cities as a day to raise awareness

0:32:41of the core ideas of education and recognition

0:32:43of the rabbi's outstanding lasting contributions

0:32:46towards improvements in World educationally throughout.

0:32:49In acts of charity you ever taught that everyday vigil

0:32:53in fact, every individual action has an impact

0:32:56on the entire universe emphasized

0:32:59the importance of education and good character.

0:33:01And is still the hope of a brighter future

0:33:03and the lives of countless people in America,

0:33:06across the globe.

0:33:07We have been told that education should not be limited

0:33:10to the acquisition of knowledge and preparation for a career

0:33:13rather the main attention should be on the building of character

0:33:16with emphasis on moral and ethical values

0:33:20education sharing gazed about creating conversation

0:33:23It's about the conversations we have with our children

0:33:25around the dinner table conversations we have

0:33:28with our students in the classrooms

0:33:30and the conversations we have day in

0:33:32and day out that can have an impact on the hearts

0:33:35and minds of our young ones.

0:33:37We are still in the throes of a pandemic that has disrupted

0:33:40our way of life in so many ways from nuns from uncertainty

0:33:45and fear that all there shining rays of hope

0:33:48and in conversations with so many educators

0:33:50and parents and students community is clear

0:33:53that this unprecedented disruption

0:33:55of traditional educational models

0:33:57has provided the perfect setting for us all to re-evaluate

0:34:01education really about the other told

0:34:05that the truth that the truth.

0:34:06Every person is an educator and we

0:34:08must be mindful of our ability to impact the lives others

0:34:12people or influenced by the bad things they do

0:34:15rather than by what they are taught.

0:34:17We have encouraged every child and in fact, every person

0:34:20that we should have a dedicated charity

0:34:23box in our homes or offices to give money to and give

0:34:27money to charity daily.

0:34:29I don't I don't believe that you are able to see me

0:34:31on the screen but I am to be giving I'm gonna be putting

0:34:35a point in the charity box here as we speak in front

0:34:38of the meeting ID is that when boxes fall, we count the cash

0:34:44and write a check to a worthy cause

0:34:46and give the total amount to someone in need.

0:34:47It's not about the total or not.

0:34:49Don it is more about the consistency of giving that has

0:34:53a has a tremendous impact and transforms into givers ensuring

0:34:58our children, our children nurture the inherent goodness

0:35:01they have by causing kindness to become routine in their lives

0:35:05is a profound way to expel hatred and develop

0:35:08a society known for its unity.

0:35:10Cooperation and emphasis for each other empathy

0:35:14for each other.

0:35:16May God bless you all and our wonderful city

0:35:19that we succeed in accomplishing just

0:35:20that through repair our corner of the world now

0:35:23is libido and all around.

0:35:25When Arif to world peace and tranquility for all.

0:35:30Thank you for this for the thank you Rabbi nation.

0:35:35Thank you rabbi.

0:35:36And then the next speaker.

0:35:38I'm gonna invite to provide comments

0:35:40is james line as a weapons lions as a representative

0:35:44of the American Red Cross which is our proclamation on consent

0:35:48item B C K change yOU SHOULD HAVE

0:35:54PERMISSION TO END IT YOURSELF how can everyone hear me.

0:35:58Yes, we can go ahead, please proceed.

0:36:01Thank you very kindly.

0:36:03I'd like to begin with thanking the real city council

0:36:07and staff for supporting the Red Cross

0:36:10March's Red Cross's month.

0:36:12And I have a few talking points that I'd like to read to you

0:36:16all to put some context with the last year

0:36:18has been like for the Red cross while facing

0:36:20the unique challenges presented by the coronavirus outbreak.

0:36:24Red Crossers around the country continued

0:36:26working with compassion and determination

0:36:29to help people in need.

0:36:30Every day like many organizations and corporations

0:36:34we've had to shift how we deliver our mission because

0:36:36of COVID 19, we've created new protocols to help keep everyone

0:36:40safe in this environment.

0:36:42This has been a team effort.

0:36:44We work with government and public health officials

0:36:47to ensure the safety of our community and workforce

0:36:49while still providing help and hope.

0:36:52When disaster strikes instead of opening shelters

0:36:55we're prioritizing individual hotel rooms

0:36:58or dormitories style rooms to make sure

0:37:01people have a safe place to stay if they

0:37:04can't return home after a disaster

0:37:07to ensure blood donors safety.

0:37:09We have implemented added precautions at blood drives

0:37:12and donation centers beginning with contact list or monitors

0:37:15face mask increased spacing added enhanced cleaning

0:37:19procedures and donations by appointment only.

0:37:23In addition to relief and comfort for Disaster Survivor

0:37:26the Red Cross is also offering a virtual family

0:37:29Assistance Center to support families struggling with loss

0:37:32and grief due to the ongoing coronavirus

0:37:34pandemic offering information.

0:37:37Referrals and other services support families in to support

0:37:41vaccinate efforts.

0:37:43Red Cross volunteers are currently

0:37:44assisting at four sites in our county

0:37:48our community counts on the American red Cross for help

0:37:50every day and supporting our community

0:37:52is at the heart of what we do.

0:37:54Our work never stops even in the middle of a pandemic.

0:37:57Help can't wait.

0:37:59On behalf of the volunteers and those we serve,

0:38:02we want to think else Rito in the city council

0:38:05for standing with the American Red Cross

0:38:07And that concludes my comments We definitely

0:38:10want to thank the city of Dallas Rito

0:38:12for being a partner This is one of my favorite months out

0:38:14of the year.

0:38:15We get to have some.

0:38:17Well I guess another years would be actual FaceTime thank you

0:38:20for not having a video one I've been

0:38:22trying to knock the wrinkles out of my dress shirt.

0:38:24That's been in the back of my closet for the last year.

0:38:28And we are here to support.

0:38:30So if I can ever be of any kind of support

0:38:33to the council connecting the citizens to with the Red

0:38:37Cross do not hesitate to reach out everyone knows well,

0:38:41maybe not everyone, but I do work for Contra Costa County

0:38:44Supervisor John Joy and I can always be reached in our office

0:38:47there.

0:38:48Thank you very much for some of your time this evening.

0:38:51Thank you very much.

0:38:53Thank you so much.

0:38:54And with that, I will just briefly

0:38:57announce that the public written public comments received

0:39:00by 4:00 p.m. deadline today were posted online and provided

0:39:03directly to the city council.

0:39:05This does include comments on items not on the agenda.

0:39:10I receive from Cordell handler Robin Mitchell and Caleb

0:39:13Birdwell And with that, I will move on

0:39:17to our request to speak mayor.

0:39:19We have sir requests to speak at this time.

0:39:22Can you just confirm the 3 minute time

0:39:25limit how many people have said requests to speak at this time.

0:39:29Yes three's good.

0:39:30Thank you.

0:39:31OK then I will go ahead and proceed.

0:39:33Our first speaker is i read.

0:39:35I may have given you permission to end yourself

0:39:38You can go ahead and begin your comments now.

0:39:41Thank.

0:39:43I think it's time to stop the blame shifting

0:39:46and I would like to quote from the auditor's report city of El

0:39:50Serino excessive spending and insufficient efforts

0:39:53to address our list financial condition jeopardize the city's

0:39:58ongoing fiscal viability.

0:40:01The city's poor budget developed practices have led

0:40:04to substantial increases in budget expenditures

0:40:08that it cannot afford.

0:40:10Poor budget mind practices have also allowed city departments

0:40:15to routinely overspend.

0:40:18For example elsa Pareto city management Department

0:40:21spent a total of $9 million beyond its budget

0:40:27from fiscal year 2000 15, 16 through to 1920.

0:40:32Even after city approved budget increases

0:40:35for each of these years.

0:40:37Moreover even though Elsa read recently proposed spending

0:40:41reductions of one point $7 million per fiscal year

0:40:452020 twenty one we question whether those reductions are

0:40:49realistic given the absence of specific detail in the cities

0:40:54budget, which should explain how the city departments intend

0:40:58to achieve the reduction If management is

0:41:03unable my personal comments if management is unable perform

0:41:07the duties that the state auditor requests then perhaps

0:41:11the county should be asked to run Elsa vetoes flying since I

0:41:16think the two long term councilmen members who have

0:41:19acted as rubber stamps voting for every spending increase

0:41:23should consider resigning so that more engaged citizens can

0:41:26take your place Finally,

0:41:29I think that members should be questioned

0:41:32in order to determine if they are

0:41:34up to the task that lies ahead.

0:41:37Thank you very much.

0:41:40Thank you.

0:41:41Thank you my next speaker is Denise

0:41:43thinks to me safe giving me the ability to I

0:41:45mean, you can begin your time now.

0:41:48Thank you.

0:41:49Good evening council members.

0:41:51The release of State Auditors report the supporting documents

0:41:55and the city's response that I read late this afternoon

0:41:58highlight the extreme financial mess for the residents

0:42:01taxpayers and employees in a democracy

0:42:04elected officials are accountable to the public

0:42:07that they govern.

0:42:08While accountability may be complicated

0:42:10it may be complicated.

0:42:12It should not be a tricky thing the lack of checks and balances

0:42:15in this city over the last decade

0:42:17have placed taxpayers residents and employees in harm's way

0:42:21with a catastrophic debt that is all

0:42:23that is mostly self-inflicted.

0:42:26Over the last 15 years due to the cozy

0:42:28relations ship of council members

0:42:30the city leadership and poor accounting practices.

0:42:34This is not a situation that the majority of Miss municipalities

0:42:37are facing in the state california

0:42:39or even in the United states.

0:42:40Our situation is self inflicted and as some of you

0:42:43already said tonight it will take years to fix.

0:42:46Sadly and frustrate only the city.

0:42:49The city management's identified potential options

0:42:51to save money shows an underwhelming an

0:42:55an underwhelming effort that even the big steps are not

0:42:58on the table.

0:42:59So I will tell you what I think are the seven examples

0:43:02of what's not on the table.

0:43:03And there are many more.

0:43:05First consolidate public safety into one organization, which

0:43:08will save at least seven fifty thousand

0:43:10annually probably well over a million.

0:43:13Second freeze all employee pensions

0:43:15for at least three years, which will free millions of dollars

0:43:18in cash flow, which is the city's key problem in exchange

0:43:22for freezing the pension employees and unions should

0:43:25given should we have their wages reinstated

0:43:29and stop the furloughs.

0:43:313 eliminate non essential city management roles

0:43:34and non public safety personnel and outsource

0:43:38as much as possible to create a more cash flow

0:43:41positive situation as well as flexibility for renegotiate

0:43:46the kensington fire contract, which

0:43:49the city's fire chief said Feb.

0:43:522019 town hall that the city of El Cerrito

0:43:54subsidizes the contract to the tune over a half a million

0:43:57dollars which if this is true could be construed

0:44:00as a gift, which is not allowed under California law

0:44:03five monetize the fire services, including

0:44:06inspection medical responses.

0:44:07And so forth to create net revenue to mitigate costs

0:44:11and to recover all on all services

0:44:14provided to non residents six eliminate all

0:44:17non residential services in the park and Recreation Department.

0:44:20We are not here to subsidize non residents 7 pay employees based

0:44:27on comparable cities with UN diversified tax

0:44:30base which we have.

0:44:31We do not have a tax diversified base.

0:44:34We should not compare ourselves to Finally,

0:44:37I request that you inform that you form

0:44:39a citizens task force to make recommendations

0:44:41on a work around plan.

0:44:43The city's management has made its recommendations

0:44:46to you, which adds up to cheese doubling

0:44:48as I said a few months ago.

0:44:50We need you to look out for us.

0:44:52And we need to help you.

0:44:54So please let us put additional ideas on the table,

0:44:57you owe this to the residents, the taxpayers

0:45:01and our employees.

0:45:02Thank you.

0:45:03Thank you Next speaker is happy Gowdy.

0:45:06Howdy you can unmute yourself and begin your time now.

0:45:11Thank you.

0:45:12My name is Gowdy and i live an el Cerrito i'm speaking

0:45:19constant item for E. Edward regarding

0:45:24the recycling truck purchase.

0:45:27So i urge you to pull this consent item from the calendar

0:45:32and not adopt this purchase at this time.

0:45:38So your proposal five seventy thousand dollar investment

0:45:44in antiquated diesel technology that was not

0:45:49going to serve the community.

0:45:51Well.

0:45:52And i think it's simply doesn't live up to the responsibility

0:45:57to adhere to the Climate Action Plan

0:45:59and the climate emergency declaration

0:46:01that this council adopted.

0:46:03And so you should not act on it.

0:46:06I appreciate that the report did look

0:46:09at alternative fuel options natural Gas and Electric.

0:46:14And while it alluded that they were not feasible for the city

0:46:18that does not mean that it's a good time to double down

0:46:22on the past and commit ourselves to 10 or more years

0:46:26of diesel trucks that are not going to meet

0:46:31the needs of our community.

0:46:33State and the world as report stated there's very high demand

0:46:39for electric trucks in St. Is the state of California

0:46:46is a very strong leader in and pushing

0:46:50forward for heavy trucks and buses to the electrified.

0:46:54Very soon.

0:46:55So this is a very rapid evolving market in 2, 3, 4 years, things

0:47:01could look very different but we'll be stuck with the past

0:47:04if you move through with this purchase.

0:47:08I think it's really not in the spirit of our

0:47:16reduce reuse philosophy, the recycling center really

0:47:22emphasizes that we would just throw away these existing

0:47:26trucks and buy new ones.

0:47:28There's no reason that we can't with good maintenance

0:47:31keep these trucks going for 15 years or so.

0:47:37And so instead of hiring a contractor to give a status quo

0:47:42solution over and over again.

0:47:44I think we need to ask for a plan

0:47:47that's really forward looking.

0:47:49And I think by saving some money a thousand dollars on interest

0:47:54for this purchase alone in the future

0:47:57And you can buy a lot of maintenance

0:48:00and repair for ninety thousand dollars

0:48:02a year that this is going to cost.

0:48:05We can actually save some money in our integrated Waste

0:48:09Management Fund to make a more sensible purchase

0:48:14in a few years and take advantage of state incentives

0:48:17that will come along.

0:48:18Thank you.

0:48:20Thank you.

0:48:21And next speaker is Ricky seeing Ricky,

0:48:24you can unmute yourself begin your time now.

0:48:28Thank you.

0:48:28I'm actually gonna invite everybody

0:48:30to council for this laugh and the citizens.

0:48:33We to practice some deep breaths.

0:48:35So I'm gonna do my speech by talk today.

0:48:38I'm nominated by all if you had to take some deep breaths

0:48:40while we just breathe in through your nose hold that breath

0:48:43and release your mouth and just do

0:48:45that while I speak because I'm just noticing that there is

0:48:48a severe lack of mindful ness in especially the decision

0:48:51makers in our community, which scientifically speaking

0:48:54actually creates science is proving that if you don't

0:48:58practice mindfulness that that disturbs

0:49:00your focus, your clarity your decision making i mean,

0:49:03this is a fact, scientists proving so for us

0:49:06to start practicing these practices is vital for us

0:49:08to be able to make decisions that are going

0:49:10to be actually intercom it.

0:49:13So we can actually solve problems quickly.

0:49:15And we can get out of this emergency anyways

0:49:18so that being said first half honor.

0:49:20Karen, thank you so much.

0:49:22I hosted a civic study Group focused on the budget crisis.

0:49:26She sent an amazing write up which was really helpful.

0:49:29And the conversation.

0:49:30And then there was a few community members

0:49:32that came so thank you guys for coming

0:49:34and joining the conversation.

0:49:35The conversation was actually really interesting

0:49:37because I also invited some experts who are experts

0:49:41on cooperatives housing cooperatives

0:49:43banking cooperatives education quite you name it.

0:49:45They're like experts.

0:49:47They set it and even somebody from corporation Richman

0:49:50Princess attended as well.

0:49:52And they've doing some great work in Richmond

0:49:55and one of the things we found was actually,

0:49:57there was a cooperative here in L.A. Reno

0:49:59the preschool that's been around for knit since 1940.

0:50:01That said cooperatives are incredible

0:50:04the wonderful solution to all of our problems.

0:50:07We can consolidate a lot of different things,

0:50:10including the social emotional thing that I've been speaking

0:50:12above, we can actually create businesses

0:50:14and if the city doesn't want to do it.

0:50:16It doesn't matter what happens is

0:50:18a are the tax money that's brought by doing

0:50:20cooperatives makes a big deal.

0:50:21I'm going to host another I'm a host brainstorming.

0:50:23I really encourage city staff to show

0:50:26up that because it is so impressive

0:50:28when we work towards a goal.

0:50:31And we actually have ideas that are innovative and co-ops

0:50:34even that innovative.

0:50:35During pandemic cooperatives have flourished

0:50:37all over the world, not just here in America

0:50:40despite what's going on.

0:50:41They've actually closed.

0:50:43And it builds wealth.

0:50:44So that's a big thing.

0:50:45I think community wealth is huge.

0:50:47If if we just go.

0:50:49And there's so many ideas cooperatives there's

0:50:51so many buildings are empty.

0:50:53There's churches that empty their gift with housing

0:50:56we have the potential with as Bart situation

0:50:58to say to a co-operative housing cooperative

0:51:00we can literally flip.

0:51:01We can be a beacon you guys like the LSAT Rito

0:51:04can actually be an example for the rest of the country of how

0:51:07we can flip a city, but we have to look into this so I implore

0:51:11you guys attend to reach out to me

0:51:13reach out to the council members if we want to come to one

0:51:16of the brainstorming sessions, we

0:51:17have I will go to the committee meetings,

0:51:19but I also don't feel like they're

0:51:20run in effective constructive way I want to create

0:51:24construct conversations where we're going to solve problems,

0:51:27and also mindful of conversations.

0:51:28Thank you guys.

0:51:29Let's explore these ways.

0:51:31All right Thanks you complete request to speak at this time

0:51:39Thank you.

0:51:40We move on to the adoption consent Calendar

0:51:45I'm going to read each item and there is any item that someone

0:51:49would like to call on.

0:51:50I'd like to know about it.

0:51:52Item four A is the problems in which

0:51:55we heard about recognizing education and sharing

0:51:59day for as the proclamation recognizing March's American

0:52:05Red Cross which we also heard about item 4C

0:52:10is the timely antique Asian racism resolution, which

0:52:13other cities have are passing around the Bay Area item 40 is

0:52:18the twenty twenty general plan annual pro-gay

0:52:21report done by our staff item for E

0:52:24to authorize lease purchase two,

0:52:27we're loading recycling trucks with item 0 oK we'll pull e

0:52:36an item for F is the construction contract award

0:52:39for the Carlson Boulevard in San Diego street cross walk

0:52:43improvements and so yes Mayor Pro Tem i use for C for C

0:52:58and I'd like to pull for D so we have four C or D and paul is

0:53:09yours again LA Councilman remotely or eat for E OK Can we

0:53:17have a move the rest of the items which include for a four

0:53:25B and four f and I need a notion to approve a B and F it's been

0:53:34moved by council member I didn't buy her a second count no

0:53:38Ables seconded it can we have

0:53:40a roll call both please, if I may have put in King.

0:53:45Yes council member Abel sin Hi council

0:53:50member Mohammed I can see member redneck i motion carries.

0:53:54Thank you, Mayor pro tem I go, do you want to talk about 4C

0:54:01guess This is something that I want to make sure our residents

0:54:07are mindful of and no that there has been so much

0:54:11xenophobia an anti Asian racism all over the country especially

0:54:17here in the Bay Area my colleagues and stand is

0:54:21with assembly member Evan Lowe and the Asian American elected

0:54:26officials had a press corp appearance on Sunday

0:54:33over the weekend.

0:54:34And I wanted to make sure that residents here know that we

0:54:39stand by our Asian American residents

0:54:43here according to the 2010 census we had 28

0:54:47and that was more than 10 years ago,

0:54:51I suspect we're between 30 35% possibly higher

0:54:55now with the 2020 census.

0:54:59So of this council is supported of

0:55:03our Asian American community.

0:55:05There have been hate crimes in year cities,

0:55:08the president the President Biden spoke about hate crimes

0:55:13there have been killings of senior citizens

0:55:16locally in Oakland, San Francisco there have been

0:55:20crimes on our small businesses Asian-American businesses

0:55:25and I want to residents to know that we our Asian unity

0:55:30and all communities here and we're saying no hate

0:55:34and as the second elected asian-American official

0:55:40the one with III, who is my colleague council

0:55:44member Modi Moti the I know we all support this,

0:55:47but I just wanted to let folks know many small businesses are

0:55:52Asian American and they are scared many of our residents

0:55:57are seen as and they are scared.

0:55:59They don't want to venture to San francisco

0:56:02and to Oakland and in some parts of Berkeley.

0:56:05But we want to make sure that that does not spread here.

0:56:10So I know with our Police Chief our police force our volunteers

0:56:14Crime Prevention Committee we will look after each other

0:56:18and make sure that hate does it spread here in El Salvador.

0:56:22Thank you am i muted here now.

0:56:30Oh yes.

0:56:33Council my mama mama thank you Mayor

0:56:36if I do see that the chair of the human relations Commission

0:56:41is on an he may want to speak to this

0:56:44did come up the Human Relations Commission meeting.

0:56:48And I really appreciate the discussion there.

0:56:52So if he would like to make a comment or make a statement

0:56:57that would be really great.

0:56:58Thank you.

0:56:59Council member my team.

0:57:00I am going to give me both Mr Wilson and Wilson and Walter

0:57:04Williams, the ability to unmute themselves because they did

0:57:08have a statement they wanted to share

0:57:09some Human Relations Commission thank you Can you hear me.

0:57:16Hear me.

0:57:17I may not.

0:57:18Yes may not.

0:57:18Thank you.

0:57:21I think I hear you know you know you may have the audio,

0:57:31and it's creating a feedback when you speak maybe we can go

0:57:41to Walter Williams first and come back to Mina mr.

0:57:48Williams you have some here why don't you go ahead

0:57:53and we'll get them in a secondly Oh OK.

0:57:58Well my me my colleague meter here.

0:58:01I'm Walter marcy Williams, the third

0:58:04I'm the chair, the H Ms R C the humans committee,

0:58:08the humans released his committee.

0:58:10And we are here because we were together a program

0:58:14to support the Asian community here in El Serino

0:58:17and locally to begin, I was going

0:58:22to read our current directive and then my colleague media

0:58:25will read the second part to begin as the culprit nineteen

0:58:30global pandemic pass through false political narrative

0:58:33directed cause it responsibility towards the Asian American

0:58:38community hate crimes against individuals of Asian

0:58:41and have increase.

0:58:42We hold fast and stand together as a community

0:58:46through all circumstances we explicitly recognize

0:58:49this divisiveness as debilitating

0:58:52for those being targeted and for our community at large.

0:58:55The el Serino Human Relations Commission

0:58:58stands united against hate and holds the right rising violence

0:59:02against our Asian-American brothers and sisters

0:59:05as Intolerable Acts against humanity in our role as humans

0:59:09relation commit mission the HRC our goal

0:59:12is to develop positive human relations through education

0:59:15encouragement greater respect and understanding

0:59:18between people their equal opportunity

0:59:20rights under the law and in recognizing the value

0:59:24in racial, ethnic, religious and cultural diversity

0:59:27of El Cerritos Community our purpose is to initiate

0:59:31educational and cultural programs that promote tolerance

0:59:34and mutual respect between all persons

0:59:39Are you with us Mina mina and you didn't

0:59:49mean f you went idea again.

0:59:55We are not able to hear you walter.

1:00:04Looks like you guys are you may not be working you may need to,

1:00:09of the absolutely no problem in response

1:00:12to the current social climate that Elsa Rito Human Relations

1:00:15Commission will host a series of stories

1:00:17searing searing sessions opens space to witness celebrate

1:00:21and better understand the strengths

1:00:23and struggles Asian community.

1:00:25The stories searing sessions truth

1:00:28recruits who reckon affiliation will commence

1:00:30on Wednesday, April 14.

1:00:32And continue every other week through Wednesday,

1:00:35June twenty third two thousand twenty

1:00:37one we request that members of the Asian-American community

1:00:40but stories to share reach out to any member

1:00:44Elsa Reno's city council or human relations commission.

1:00:48You may also send an email to H.R. C Elsa Doe at gmail.

1:00:55Again that's all lowercase h R C Elsa Serino at G.M. Dot.

1:01:02We also invite the community at large to join for these events.

1:01:06More details to come.

1:01:07We're working on flyers for the event.

1:01:10And we've destroyed distribute them

1:01:12as soon as they are available thank you

1:01:14for inviting us this evening.

1:01:16And we hope that we can be of some service in these

1:01:19dark times thank you very much.

1:01:23That's good news.

1:01:24We all enjoyed the conversations african-American

1:01:27and racism that happened from the HRC previously.

1:01:31So this is incredible good news.

1:01:34Are there any other comments about this.

1:01:37I just wanted to say thank you to what

1:01:40the chair Human Relations Commission

1:01:42and thank you to my classmate Minna

1:01:45and know that as a former chair of the Human Relations

1:01:49commission more than 10 years ago,

1:01:52I want to say thank you to that amazing commission

1:01:55that we have here.

1:01:56And also read out.

1:01:58So appreciate you stepping up and doing

1:02:00this for our community where you're United here.

1:02:03Thank you.

1:02:04Indeed.

1:02:05Thank you all.

1:02:06I hear a motion on item 4 C i'll send moved

1:02:14by council member Marty Jarmon.

1:02:16I see council member able send it Can I have a roll call,

1:02:21please.

1:02:22Finally I keep attempting to Hi Council member able sing.

1:02:28I can submit Burma to Yemen I can see a member

1:02:32of ethnic mushing carries.

1:02:35Thank you.

1:02:37I pulled for D and I'm hoping Karen

1:02:41schon or someone can come up.

1:02:44I have no concerns or problems I just

1:02:47wanted to embellish the work that our city staff has done.

1:02:51I think this is a great document that required by our state.

1:02:56And I just wanted to get some just

1:02:58general personal introduction about this document

1:03:02because we do see it every year.

1:03:04It does take some time to do.

1:03:07And it gets a great briefing of the city goes through

1:03:10and what we're involved.

1:03:12So Sean why you start with just a little introductory

1:03:15because it's different a little bit different every year.

1:03:18And sometimes you put things on the consent calendar

1:03:20and there are things that we just need

1:03:22to hear about and know about.

1:03:24And then I just have two or three very short questions.

1:03:27Sean Yeah sure.

1:03:29Thank you, Mayor.

1:03:30So so Yeah.

1:03:31Just to give you a little bit of background

1:03:33on the general plan annual progress report

1:03:36it is required by state statute.

1:03:38So as you probably know every city in California

1:03:41is required to have a general plan, which is sort

1:03:45of the Constitution then, of growth and policy making

1:03:49in your city.

1:03:51So all of you know all the actions

1:03:53that the city council takes.

1:03:55The land use policies, the established et cetera.

1:03:59Are required to be consistent with the general plan.

1:04:02So the general plan has a series of required.

1:04:04What are called elements, but they're

1:04:06really chapters you can think of them as chapters

1:04:10and these are topic areas that the state establishes.

1:04:14And so our general plan meets all of those criteria

1:04:18and then within each chapter or element

1:04:21there are a series of policies.

1:04:23So what the general plan annual progress report

1:04:25requires us to do is each calendar year at the beginning

1:04:28of each calendar year.

1:04:30So it's required that we submit it to the state

1:04:34by April 1 for the previous calendar year.

1:04:37So that's why right now, we're discussing

1:04:40the 2020 general plan annual progress report

1:04:43but so what we're required to do is

1:04:44to go through all of the general plan policy is

1:04:49and describe what actions have been

1:04:53taken to further those the further those policies

1:04:57each year and what.

1:05:00So what actions have been taken.

1:05:04Yeah sorry.

1:05:05Just like I said, what actions have

1:05:07been taken within the last calendar year

1:05:08to further those to further each general plan policy.

1:05:11So that's what that report does you'll see it just goes

1:05:14through all the policies in order

1:05:16and has a narrative about what actions the city

1:05:20took in calendar year 2020 You know I'll just note real

1:05:26quickly, I mean, you know as has been noted many times

1:05:30before 2020 was a pretty unusual year, not just for our city

1:05:34but for the world so there are some things

1:05:38that are pretty different in this report

1:05:41compared to last reports.

1:05:43You know the report notes that we didn't hold

1:05:46a lot of city events that we normally

1:05:48hold the Fourth of July events.

1:05:50The events at the street theater etc so we still put them

1:05:54in there that they know that those are ongoing city events,

1:05:57we were not able to hold them this year due to the pandemic.

1:06:02But that we anticipate holding them in the future

1:06:04as soon as it's safe to do.

1:06:06So again.

1:06:07So you know that's just one.

1:06:09One of the unusual things about this year's report.

1:06:11Thank you Yeah hopefully that's a good overview.

1:06:14And I'm happy to answer any question.

1:06:16Thank you.

1:06:17I just have a few quick a couple quick questions on page

1:06:21for you talk about the General Plan update must be funding

1:06:26for that must be identified.

1:06:28What does that mean.

1:06:30That's correct.

1:06:31So our general plan our existing general plan was adopted

1:06:34in nineteen ninety nine.

1:06:37So it is over 20 years old at this time.

1:06:40So I'm still working off the nineteen ninety nine

1:06:43General plan is that right.

1:06:46That's correct.

1:06:47That's not me not hugely unusual.

1:06:50I mean, it is getting towards the older end of a lifespan

1:06:56for a general plan.

1:06:58But you know there are cities that have equally

1:07:02old General plans are older.

1:07:05So you at some point, we would like

1:07:08to be able to update the general plan,

1:07:10but it is it is one of those sort of unfunded

1:07:13mandates that the state requires to do.

1:07:15So the state requires us to have a general plan but there aren't

1:07:20there aren't a ton of funding sources

1:07:24that are available to prepare those documents.

1:07:26And there and they're quite you know it's quite time consuming

1:07:29and can be costly to prepare when it's requires

1:07:33an environmental impact report.

1:07:35So it will require a lot of public outreach.

1:07:39And require an environmental impact report.

1:07:42And so it will take a lot of staff consulting time to do

1:07:46say until it's something that the city council.

1:07:49You know if you share the desire to update the general plan,

1:07:53then you'll need to be thinking about how to budget

1:07:56for that in coming years.

1:07:58OK.

1:07:59I was going to mention the climb change update and the fact

1:08:04that council members send in Rudnick are working something.

1:08:08But you're saying everything in this report

1:08:11is what happened last year.

1:08:12Is that correct.

1:08:14Now what's going to be happening correct.

1:08:17Yeah.

1:08:18It's for calendar year 2020.

1:08:20We'll see that.

1:08:21And we'll see that next year.

1:08:23OK that's a deal and finally, the day in the history section,

1:08:28we talk about Elm Street is going to be moving.

1:08:32And that will be rehabilitation.

1:08:34Is that just a pipe dream or is that real none of that happened

1:08:37right on Elm Street.

1:08:38That's something I would look forward to.

1:08:40I would love that center to be another Elsa Serino venue Yeah.

1:08:45So we hope it's not a pipe dream for sure.

1:08:48The there is a new developer of that project

1:08:53and they seem to be moving forward.

1:08:55They are eager to submit a while building actually

1:09:01a building permit has been submitted they're eager to have

1:09:04that building permit issued.

1:09:05They've been working with us closely recently on some issues

1:09:10surrounding the rehabilitation of that house As you know,

1:09:14there was a development agreement that was adopted

1:09:16for that project and so that development agreement provides

1:09:20longer timelines for the developer

1:09:24to act on these permits than if there wasn't

1:09:26one that normally would have two years

1:09:29to that's really happening.

1:09:31So what you're.

1:09:32What's that.

1:09:33That's really happening.

1:09:34It's gonna happen.

1:09:35We certainly hope so it appears that there

1:09:37is as movement lately.

1:09:39And it's not a matter of budget funding.

1:09:42And we have to deal with not for the city.

1:09:44I mean, it's a matter of the developer securing

1:09:47their construction financing.

1:09:48OK, thank you.

1:09:50That's really all I had.

1:09:52There was a lot of housing stuff and I'll

1:09:55leave that up to anyone else that might

1:09:57some of our housing experts or anyone

1:09:59else have any comments section.

1:10:01Any questions.

1:10:02Yes.

1:10:03Councilman Marty Yarmuth thank you son.

1:10:07Can you give us a quick update on how

1:10:09we're doing towards the goals.

1:10:14I mean real real high level.

1:10:16I can tell you that we are what we are one of the very

1:10:20few cities in northern California

1:10:22that is exempt from SB 35, which is a streamlining

1:10:26streamlined legislation that was passed recently

1:10:30and cities that are not meeting arena goals

1:10:33are applicants can submit applications and exercise

1:10:39their rights to that streamline Those streamlining provisions

1:10:41Elsa el Cerrito is on a very short list of cities

1:10:45that are exempt from that because we

1:10:47are meeting our arena goals.

1:10:51OK can you ever get those comments going promotion

1:10:55on common consent item for D move

1:11:02against The motion made by council member multiple

1:11:06on seconded by council member Abel said roll call, please.

1:11:14Deli I name Potemkin too.

1:11:16Council member Abel Singh high Council member Matty Emma.

1:11:21I can some member ethnic.

1:11:24Motion carries thank you, Sean.

1:11:27And thank you.

1:11:28Council members.

1:11:29Item four e.

1:11:30Council member Mota Yama s thank you.

1:11:34I wanted to get a better sense of what our options

1:11:38are when I read this.

1:11:41Report I was wondering why biodiesel for example,

1:11:46was left out as a consideration.

1:11:49I did do a little bit of internet research, which

1:11:52is always a little dangerous.

1:11:54But I did know that in Berkeley they

1:11:56had used the same procurement had very similar report,

1:12:01but they also included biodiesel as an option.

1:12:04And so I would like to know why we didn't consider that are we

1:12:09not giving enough guidance to the procure procurement

1:12:13consultant to really impress upon them that we really are

1:12:16a green city and that we have as high an expectation in terms

1:12:20of understanding what our options are as any other city

1:12:23to become Berkeley specifically.

1:12:25But since we are working on these things.

1:12:27I think that i would like to make sure

1:12:30that we are in the forefront on green issues

1:12:33as much as possible.

1:12:34So if there's any feedback that staff has that will be really

1:12:37great to hear staff ideas Yes good evening

1:12:40the mayor and cITY COUNCIL My name's Will Provost

1:12:43the operations and environmental services division manager

1:12:46and I can answer that.

1:12:48So biodiesel is something we have looked

1:12:50at in the past and also even more

1:12:52recently renewable diesel which is similar.

1:12:54I'll alternative fuel to biodiesel

1:12:55but it runs a little bit cleaner.

1:12:57And a lot of fleets are moving to and actually many years ago

1:13:03in 2008 to about 2010 our recycling fleet did use

1:13:07biodiesel and we started in separate storage containers

1:13:11and used it to fuel our vehicles,

1:13:14but it actually turned out to be more cost.

1:13:17We had to store it separately, there

1:13:19were some issues with that and the engines some of the trucks

1:13:23reported problems that required costly repairs.

1:13:26And then just on a per unit basis because it was not

1:13:29bulk pricing with our mother's diesel vehicles

1:13:32around the city on a per unit basis, it was more costly.

1:13:36And so we did switch back to conventional diesel.

1:13:38That's not to say that we could move to biodiesel

1:13:41or all these trucks considered under this procurement

1:13:44would be compatible with biodiesel or renewable diesel.

1:13:47But I think moving forward, we'd probably

1:13:50renewable diesel is what a lot of fleets

1:13:53moving toward because it burns cleaner

1:13:55and is better for the engines.

1:13:57But we'd want to look at that probably holistically

1:14:00with other city departments.

1:14:01So we wouldn't have to have a separate storage

1:14:04and we could get that whole unit pricing.

1:14:07So it's something we're looking at.

1:14:09We didn't call it out here.

1:14:10Perhaps we should because it didn't

1:14:12come to mind as like electric vehicles or CNG

1:14:15as being on the forefront like some of those items.

1:14:19But renewable diesel is definitely

1:14:21one of the more easier opportunity

1:14:23to implement in terms of low hanging fruit

1:14:25because you don't have to add any adjustments

1:14:28to your vehicles.

1:14:29We could almost overnight switch our fuel source

1:14:33with coordinated the increase in cost and coordination

1:14:36across departments.

1:14:38Well, I here have a question Thank you Mayor.

1:14:43Well I'm on the map commission and the Marathon refinery.

1:14:51They are closing many of their operations.

1:14:55One department.

1:14:56They will keep is renewable diesel

1:14:59and that will provide renewable diesel for the earmarks

1:15:05that that end up going from Martinez

1:15:10all the way to LA Antioch so what

1:15:16I support renewable diesel.

1:15:18You're right.

1:15:20It is cleaner and that's what a lot

1:15:23of get trucks are opting for now and marathon

1:15:28is supportive of that.

1:15:30And that's why inside it not to close up the whole refinery.

1:15:35So it's definitely something we could look into and like

1:15:38get that cost differential.

1:15:40You know talk to the fire department

1:15:41see if they'd be willing to use it in fire trucks try and do

1:15:45that coordination and just and also look at the greenhouse

1:15:49gas impacts like what the cost and what's the marginal benefit

1:15:52of that action.

1:15:53So it's something we could look at in the future.

1:15:56And I'm also joined by Carter Schulz

1:15:58with our three consulting who helped evaluate the procurement

1:16:02and work for the city overseeing our recycling

1:16:04division and event or with the public, where the public works

1:16:07director can also help answer questions if you have any more

1:16:11be further staff comments you better

1:16:14Garth in the other comment.

1:16:20Jan council member Ableton it's actually a comment

1:16:25that I guess a question.

1:16:27I was a.

1:16:28There was a discussion about that particular type fuel

1:16:32and one of the issues seemed to be availability.

1:16:35So I was just wondering if when is looked into they could look

1:16:39at that issue to also yeah, it's definitely something we could

1:16:43look into if we'd have to switch fuel providers

1:16:46or how it could be delivered.

1:16:51My remotely Alma My understanding

1:16:54is we do have a diesel vehicles now

1:16:58and we are potentially procuring other vehicles.

1:17:01So at what point do we have enough of economy of scale

1:17:07to make that switch over to a renewable diesel

1:17:12or something less bad than regular diesel fuel Yeah.

1:17:17So we have diesel trucks now and the ones

1:17:19who are using our diesel also how they're fuel.

1:17:22Now is with an underground storage tank

1:17:24at the public safety building that's shared by the fire

1:17:27department and the fire department vehicles are very

1:17:30they're very technical technologically advanced

1:17:33and need very specific few very filtered fuel

1:17:38just because you don't want engine trouble and your fire

1:17:40trucks and I understand they can be kind of finicky

1:17:44and so you know we just have to be careful.

1:17:46So it would take some coordination

1:17:47if we were to use that same tank we'd have to get the fire

1:17:51department on board with the same proposed

1:17:53to use the same fuel as a recycling fleet.

1:17:55So that's something that would have to be accomplish

1:17:58Alternatively as in the past, we could use a separate fuel tank.

1:18:02But that comes with its own ball of wax

1:18:04extra cost probably has meant reporting and other things.

1:18:08But it's something that could be done.

1:18:10We could make the switch citywide i understand

1:18:13some other cities have.

1:18:14But there would be a cost to that.

1:18:16And some operational challenges Would there

1:18:22be any penalty for us if we gave you a little bit more

1:18:26time to do some additional research for this

1:18:31and it wouldn't change.

1:18:33It wouldn't change this procurement

1:18:34because the diesel trucks that are being recommend

1:18:37for procurement tonight they're all

1:18:40competitive with renewable diesel.

1:18:42So choosing to do that fuel source at a later date when

1:18:45changed this decision.

1:18:48And I know go ahead.

1:18:52But to address the question put by Mr Dowdy earlier.

1:18:59Is there any way to get a sense of what

1:19:03rebate or additional support we might get if we were to choose

1:19:08electrical or Is there any benefit in waiting a few months

1:19:12to see if that would pan out.

1:19:15Yeah, we have.

1:19:17We have been watching you know the financing kind grants

1:19:20and resources available and tap Garth here because they had

1:19:24a section in the R3 memo that talked about financing

1:19:27opportune But I will say, we to the point of timing we

1:19:33really do need the trucks soon.

1:19:35And a sap really they're approaching eleven and 13 years

1:19:39old, which is beyond their replacement

1:19:42cycle typical useful life.

1:19:43And it's beyond depreciation cycle

1:19:45and just from a day to day basis you know

1:19:48I can I'd like to give a shout out to Mario Gonzalez

1:19:51recycle recycling operation supervisor who works every day

1:19:55to keep our fleet up and running an operation to make sure

1:19:58that we can reliably serve consistently our businesses,

1:20:03our commercial accounts our multi-family dwellings

1:20:05and he works every day to make sure those trucks operation

1:20:10and the trucks have some of them pick hundreds of stocks a day

1:20:15with a hydraulic arm and so it can be there's a lot of wear

1:20:19and tear.

1:20:20And so all that to say, we need these trucks soon just so

1:20:25that we can provide safe and reliable collection services

1:20:28to the community that I don't think

1:20:32you know and I'm not sure the incentives will

1:20:33change in the next few months.

1:20:36Or the technical g but I'll pass it on to Mark

1:20:40to kind of elaborate if Thanks will

1:20:43and good evening mayor council members

1:20:45Garth Schulz with our three consulting,

1:20:47we assisted on this matter.

1:20:50And for transparency.

1:20:51I served as waste prevention specialist and then operations

1:20:54manager in the L Street recycling Division at the time

1:20:58when the last trucks were purchased

1:21:00and when we tested fuel and diesel that was from 2006

1:21:03until 2012 excuse me 14.

1:21:07So with respect to the question around the electric vehicle

1:21:11procurement I've actually done some more additional research

1:21:14on even since this memo was originally

1:21:16drafted because this question can

1:21:17continues to come up with cities all throughout the Bay Area.

1:21:21The bottom line here is that this is still several years

1:21:24away from being in practical development

1:21:25for a fleet of this scale and size

1:21:27and I'll get to a point of reference

1:21:29for example City of Palo Alto has one vehicle that has

1:21:34been under pilot testing phase.

1:21:36The city purchased that vehicle for its waste hauler.

1:21:40It's been in place since twenty nineteen in had a myriad set

1:21:44problems with the battery functioning

1:21:46and the electrical units they had planned

1:21:48on purchasing additional vehicles as recently

1:21:50as this coming fiscal year.

1:21:52But because the state of the industry.

1:21:55They are deferring that purchase of potential One

1:21:57or two additional test pilot vehicles by an additional 2, 3

1:22:01fiscal years.

1:22:02And again, those are a prototype vehicles for testing purposes

1:22:06on a policy perspective only the anticipated costs for purchase

1:22:10those vehicles is a minimum of twice the existing diesel fuel

1:22:14alternatives and also require significant infrastructure

1:22:18for the charging elements.

1:22:19So there are some tentative rebates available out there.

1:22:22I would say actual rebates not tentative rebates

1:22:25but they are theoretically available to the city.

1:22:27If you were to move in this direction

1:22:30those rebates only partially offset the more than double

1:22:33cost in terms of the new purchase price.

1:22:38I would guess based on recent conversations

1:22:40that we're Five to 10 years away from a profile application

1:22:44for the city of El Cerrito larger

1:22:46fleets in much larger communities

1:22:48may have some opportunity.

1:22:50But I know of no existing plans to really

1:22:53that forward in broad strokes terms right now.

1:22:56So just simply isn't ready, Mr Gowdy

1:22:59did reference the state's policy directions

1:23:01coming directly from carb on.

1:23:03There are some pretty ambitious goals for the truck

1:23:07manufacturers to start providing electric vehicles,

1:23:09but they still don't have a plan and they

1:23:12don't have real reasonable operating prototypes in place

1:23:15as of yet.

1:23:17So in short answer you're many years away from this

1:23:21being a practical reality.

1:23:23So far I am I am had questions to staff about electrical two

1:23:29and moving toward that goal, which I think we need to.

1:23:33But in addition to price and cost prohibition

1:23:37I was told that they don't work as well in the hills of El

1:23:42Serino and that there's real physical issues

1:23:46dealing with power and hills.

1:23:49Is that something that's going to be improved

1:23:51as well in the near future.

1:23:53It's part of what they have to improve.

1:23:54I've heard that same feedback from those operating

1:23:57in Palo Alto Sacramento a couple of other areas.

1:24:00The best application for these vehicles.

1:24:02So far has been in flat land commercial areas

1:24:05in one of the reasons being, of course The Hills is you've got

1:24:10breaking power weight capacity limitations

1:24:11but it's also the fact that battery unit is running what's

1:24:14called the PTO, which is the guts of the body truck, which

1:24:17makes all the moving parts of the body

1:24:19to arms that compare action units all

1:24:21run and function as well.

1:24:23So part of the reason as I understand the hills are

1:24:26an issue is that you're adding a battery

1:24:28to what's already heavy truck.

1:24:30So making it heavier.

1:24:31You're also then seeking to load that truck up as much

1:24:34as you can with the collected recycling

1:24:36stream, which adds weight.

1:24:37And so is it primarily a weight issue at this point.

1:24:42You don't want to have excessively

1:24:43heavy trucks and hills When you have the possibility

1:24:46failure of that.

1:24:49I hope I live that long.

1:24:50Yes Mayor Pro Tem Kindle thank you there at the last MCP

1:24:55executive board meeting we did discuss

1:24:58this electrical infrastructure and we are years behind Elsa

1:25:03Pareto we as you know, we don't have the money

1:25:07to stand on things like this, especially emphasize that there

1:25:11are grants available to get the city Richmond has much

1:25:15more infrastructure than we do.

1:25:18And so this is years from now, and even in cities Marin County

1:25:25they don't have that infrastructure as well.

1:25:27But we did discuss this, we will continue to discuss this.

1:25:32And I will report that on what we're doing.

1:25:37Contra Costa county wise and insular

1:25:42and Napa County but you're right.

1:25:45Nancy Skinner has a bill SB 18 that work on trying to get more

1:25:52funding on And they consider heavy trucking and trucking

1:25:56cross-country and things like vehicles on that

1:26:01have to do work like this.

1:26:04And also by the shipping ports they

1:26:09see hydrogen more as a possible lady

1:26:13than with the infrastructure on that

1:26:15that is more they see that more reserved for cars and buses.

1:26:22I want to give you my two cents.

1:26:24Thank you.

1:26:25Thank any further comments on this item.

1:26:29Do I hear a motion some move by mayor Pro Tem quinto.

1:26:38Do I hear second.

1:26:40Can I ask for an amendment to have the information

1:26:46about the diesel biodiesel recycled diesel

1:26:49to come back before proved or just some kind of report back.

1:26:55I just want to leave it open.

1:27:00So Mayor council member Morton Gama wants to amend item

1:27:084 e to have a report back on.

1:27:14Can you repeat what you just said.

1:27:17Report back on the possibility of having

1:27:20the biodiesel the recycled diesel

1:27:22or the renewable diesel as a fuel source

1:27:26for the people's and that's with along to authorize

1:27:30the lease purchase.

1:27:32Is that correct.

1:27:33Yes.

1:27:34If I may.

1:27:35Jump in and Garth be able to help with this point as well.

1:27:39But the financing there's a time limit

1:27:41on when we can execute the agreements

1:27:43and lock in the interest rate.

1:27:45And given the city's financial position and kind

1:27:49recent news and in our bond rating everything

1:27:51like that you know we have a term of an offer on the table.

1:27:55So I would humbly request to come back

1:27:58with a report on renewable diesel and kind

1:28:00of next steps for the city but not link it to the contract

1:28:05is mine and City Manager.

1:28:07Do you have a comment on that.

1:28:08Yes I think you will.

1:28:10I was actually just going to say that we can absolutely

1:28:12be provide that to certainly even through the demand

1:28:17quality committee back to the city council

1:28:18we'd be happy to do that.

1:28:20But we would really we would request that this financing be

1:28:24kept separate.

1:28:25And we as if you're directing us to bring you back

1:28:28a report that's we will happily do

1:28:31that because this is a goal that the council

1:28:34member is interested in.

1:28:35Is that.

1:28:36So we have a motion do I see a second.

1:28:40I'll second council member Gama seconds.

1:28:42Can I have a roll call vote, please.

1:28:46May finally, I may Potemkin to I can't remember a blessing.

1:28:51I can't remember and then I can't remember

1:28:55ethnic I motion carries.

1:28:57Thank you.

1:28:58That's the last item on the concept calendar.

1:29:02Now we move to presentation.

1:29:05Our next presentation is environmental quality committee

1:29:08work plan can we have a staff report a committee report

1:29:18Hello.

1:29:19Good evening.

1:29:20Hi Nia.

1:29:21Good evening.

1:29:22Mayor Pro Tem quinto.

1:29:24Council members, staff, and members of the public.

1:29:27I'm happy to be here tonight with you to give you report

1:29:31of the activities Environmental Quality Committee

1:29:34during the past year and what our plans are for the upcoming

1:29:38year So I think as all of you probably

1:29:41know I'm Neeld said Zoey I'm the current chair

1:29:44of the Environmental Quality Committee or the QC

1:29:47as we refer to it.

1:29:48And let's see.

1:29:49I'm sharing the presentation from my own computer,

1:29:52you certainly can.

1:29:53If you would like I can chat on your behalf.

1:29:57And I can share it.

1:30:02Great.

1:30:02So you see is a really active and fun committee.

1:30:09And we were founded in two thousand eight

1:30:13led by council member abelson.

1:30:16And so we've been in operation for 12 years.

1:30:20And we're usually at or near our maximum capacity of 15 members.

1:30:25And so it's one of the committees

1:30:26that really attracts a lot of interest from the community

1:30:29and as you can imagine, with 15 members.

1:30:34We bring a wide diversity of backgrounds and expertise

1:30:38and issues that people are interested in championing,

1:30:43and we take our charge sort of broadly,

1:30:47we're interested in all environmental issues all things

1:30:50that touch on the environmental quality of rito

1:30:53from Hans boots on the ground activities

1:30:56to educational activities.

1:30:58As you'll see.

1:31:00And of course we'll probably you just heard from

1:31:04is our staff liaison.

1:31:06He's an enormous asset helps us keeps us on track

1:31:11and helps us accomplish all of the things

1:31:13that we are able to accomplish and we do lots of historically

1:31:17done lots of things in person as you see

1:31:20in the top photo but as no surprise to anybody

1:31:23during the past year, our activities.

1:31:26Have been online through Zoom or WebEx

1:31:29just like all the rest of you So let's see.

1:31:36So we do we work in a variety of different settings.

1:31:41We work indoors.

1:31:43We during the past year hosted several public meetings

1:31:47or workshops.

1:31:48So this was prior to the Kovic shutdown.

1:31:52We had a presentation from a coyote expert

1:31:57on living with Coyotes both protecting high O.D.

1:32:02and protecting ourselves and getting along harmoniously

1:32:05in this urban wildland interface that we're fortunate to have

1:32:08here in alfredo.

1:32:09We had a well attended presentation

1:32:11on the expanded food where ordinance

1:32:13and usually every year, we have several presentations

1:32:17that bring in experts in a variety of topics.

1:32:21We hosted a very popular person EV1 to one workshop in January

1:32:25and then an online version in December,

1:32:28which served to orient people who are interested in adopting

1:32:32electronic vehicles.

1:32:35To the vehicles themselves what their options are.

1:32:39Answering questions they might have

1:32:41and really trying to ease that conversion

1:32:44over electronic electric vehicles we co promoted

1:32:49a virtual National Drive Electric week to try promote

1:32:55electric vehicles and reduce greenhouse gas emissions reduce

1:32:59climate change and also a regular occurring workshop

1:33:02that we co-host or promote is the Bay rent efficient home

1:33:06workshop and pay rent is the Bay Area regional energy

1:33:10network, a consort of local governments

1:33:13that also try to ease the transition

1:33:17to electrification in residences businesses multimedia

1:33:22unit housing and of course, we also

1:33:26work outdoors where some of the most fun work that we do

1:33:29occurs and we do this in a variety of ways.

1:33:34During the cold shutdown.

1:33:36We postponed a lot of our act or activities during the summer.

1:33:40But then we were able to resume after the summer in a socially

1:33:43distanced and safe manner.

1:33:45And we host regular green team work parties where we remove we

1:33:50and other volunteers from the community

1:33:53remove trash from streets, parks, and especially

1:33:56important watersheds.

1:33:58So this doesn't flow off into the bay.

1:34:02We promoted the Coastal Cleanup month

1:34:05with self guided cleanups which were

1:34:08socially distanced and safe.

1:34:10This past year.

1:34:12We have regular broom poles in the hillside natural area.

1:34:16So French broom I think, as most of you probably know,

1:34:19is an invasive plant.

1:34:21And so we can remove this from the hillside natural area

1:34:25thereby protecting our native plants or native ecosystems

1:34:27and here is a how do you go qC member loading

1:34:33a pile of this broom that was previously pulled

1:34:36and then dried and then now put into this dumpster

1:34:39and taken away.

1:34:40And this is a really important activity beyond the removal

1:34:42of this invasive plant because it reduces the fuel load

1:34:45in hillside natural area so it's a really important aspect

1:34:49of vegetation management that keeps our communities safer

1:34:52from potential wildfires We also promoted this year as a bike

1:34:57to wherever day previous years.

1:34:59It's been a Bike to Work Day again,

1:35:02trying to get people out of their vehicles

1:35:05on reducing gringa greenhouse gas emissions.

1:35:07And then sadly, a number of our activities including some

1:35:12of our really cherished activities

1:35:13were canceled this past year.

1:35:16So we were unable to do the hillside festival

1:35:19and the Earth Day celebration in the ways

1:35:21that we have previously.

1:35:22And we're looking forward to the time

1:35:24when we're in a situation where we can meet up again, and have

1:35:29these series of in-person activities

1:35:31that our community really loves Oh, and here are green team

1:35:36events the February 1 past, but we

1:35:39have one coming up in coordination with earth

1:35:42Day on April 24.

1:35:44The location for that one will be Central

1:35:47Park down to San Pablo Avenue.

1:35:50So if you have an opportunity and are interested in helping

1:35:54us clean up this part of Israel please come join us 10 a.m.

1:35:59and you can the instructions for how to RSVP for that come out

1:36:04and our green happenings newsletter and then we have one

1:36:08a series of these that we've decided on locations that you

1:36:10can see here and one coming up in September,

1:36:13which may be a partnership with some groups in Oakland

1:36:17to do cleanups more broadly in our community

1:36:20in a larger sense.

1:36:21So we work indoors to work outdoors.

1:36:24And then we also work in the community for years now,

1:36:28we've promoted the sun shares program, which

1:36:31is a program that helps residents of Rito

1:36:35get rooftop solar installed in the home in our household

1:36:39did a couple of years ago through the sun shares program.

1:36:43It's discounted solar installation

1:36:44through trusted vetted vendors.

1:36:47So that's a really great program.

1:36:50We are always promoting m.S. deep green sort of opt up

1:36:54to 100%.

1:36:55And energy and during this past year

1:36:59i'm happy to say that we rank number

1:37:01one in Contra Costa County for opt ups

1:37:03to the 100% green energy.

1:37:05It's really quite an accomplishment.

1:37:07And then as you all know, we provide input on the San Pablo

1:37:12Avenue specific plant update environmental impact report

1:37:14and we're always interested in looking at the Climate

1:37:17Action Plan updating Climate Action Plan and then I think,

1:37:20as many of you also know you probably all saw this recently,

1:37:25we were ranked number two on the Contra Costa County climate

1:37:29leaders climate report card only behind Richman

1:37:33I think that's a real testimony to the commitment

1:37:37of this council to environmental issues

1:37:40and else Rito and the work that we do on the sea

1:37:43and really the deep interest in El Serino among our residents

1:37:46in environmental issues.

1:37:48I think all of us coordinated together

1:37:50have really managed to move the needle

1:37:53on combating climate change and reducing

1:37:58our greenhouse gas emissions.

1:37:59And I hope we can accelerate these activities in the future.

1:38:03So high priority for us.

1:38:05And then a new item that we tackled this year following

1:38:10of course, the protest about racial justice

1:38:15and racial injustice is turning our attention to social,

1:38:21environmental, and racial justice issues with sort

1:38:23of an eye towards, how can we direct our activities in a way

1:38:27that is attuned to the needs of our community

1:38:31that serves the most vulnerable and you know and make sure

1:38:36that we're seeing our work through social, environmental,

1:38:39and racial justice lens and so last July, we

1:38:43hosted a joint meeting with the human Relations Commission

1:38:46where we had AAA and important discussion about this.

1:38:48And we co-wrote and issued a statement that reaffirmed

1:38:52our commitment to environmental and racial justice on the sea

1:38:57also recently been screening tool

1:38:59to allow us to identify places in our larger community

1:39:04within and beyond el Serino that might benefit most

1:39:07from Environmental Act actions.

1:39:09So on the right hand side of the screen here,

1:39:12you can see two examples of these tools.

1:39:15There's the Cal Enviro screen tool,

1:39:17which uses a number of different indices

1:39:22to identify communities that are most

1:39:25impacted by environmental degradation and pollution.

1:39:29And then in the bottom right is another tool

1:39:31that we looked at this Center for Disease Control

1:39:35prevention's social vulnerable index that

1:39:38looks at a lot of factors that are related

1:39:43to poor health outcomes.

1:39:45Some of those might be related environmental degradation

1:39:48but others are related to access to health care

1:39:51socioeconomic status things like that.

1:39:53And so we're compiling information

1:39:55from these different tools to figure out where are the best

1:39:59places where we can make the most

1:40:01difference in targeting and our environmental activities.

1:40:04And so that's something we're really

1:40:05looking forward to deploying out into the real world

1:40:08in the coming year.

1:40:10And then Oh.

1:40:12And then one that we've come up with recently that we hope

1:40:16to see on our agenda in the coming months

1:40:20is an anti-racism an environmental Justice Training

1:40:25that will offer a workshop within one of our eco meetings

1:40:28similar to like the coyote workshop that we had before,

1:40:31where we have an expert in this issue come in

1:40:34and mediate a discussion and training for members

1:40:36of the OECD to see any members of the public

1:40:39and any of you who would like to attend.

1:40:41And so keep your eye out for that.

1:40:43Hopefully that will be coming in the coming months.

1:40:48And we have a variety of things.

1:40:49So that's sort of the retrospective

1:40:51for last year, things we're working on

1:40:53now and then looking forward.

1:40:54We have a whole slate of activities that I won't go

1:40:56through every one of these things because many of them

1:40:58are activities that I've already described to you

1:41:01that we've done in the past but I would like

1:41:04to highlight a couple of them.

1:41:06I haven't mentioned before.

1:41:08We have coming up on April 10 twenty fifth i

1:41:11believe in coordination with Earth Day

1:41:16a presentation by Doug Ptolemy who's

1:41:19a professor and entomologist at University of Delaware

1:41:22who's really a world expert in how we can change

1:41:28the landscaping in our backyards in our front yards

1:41:32to basically make them extensions of protected

1:41:38or preserved habitat.

1:41:40So how can we build native plants

1:41:42build up the native insects depend on them.

1:41:45Support bird populations.

1:41:48And really sort of change large swaths of our urban habitat

1:41:53by making these small changes at home.

1:41:55And this is co-sponsored with the urban forest committee

1:41:59and is being led by bring back the natives.

1:42:02And so I encourage you to look at that.

1:42:05That will be a really fun and exciting event.

1:42:10We're looking forward to implementation

1:42:12of the expanded food where ordinance which we helped

1:42:14develop and then Oh Yeah.

1:42:18And then one thing that I haven't mentioned here

1:42:20is, of course, as you all know, we have the new legislation

1:42:24from the state that mandates changes to our recycling

1:42:27and composting procedures.

1:42:29And so we're really interested in partnering with the city

1:42:32in helping to implement that get the word out to our residents

1:42:36on how to best do that and make this transition as

1:42:39painless as possible and then I think

1:42:43this is probably my left side.

1:42:45We have a number of other events that we'll

1:42:47be hosting that we've hosted in the past Again many of these

1:42:51that I've mentioned before.

1:42:52But I'll call out a couple that I haven't mentioned

1:42:55is we've previously helped host fix it clinic events where you

1:42:59can see here in this photo residents

1:43:02could prior to COVID ID bring in an appliance

1:43:06or some sort of tool or something that wasn't working.

1:43:09And pair up with somebody who has expertise a trainer

1:43:13and get those things repaired and so instead of throwing them

1:43:15in the garbage they're repaired and reused

1:43:18and extending the lifetime of a variety of different things

1:43:23in the household.

1:43:24We have a City Nature Challenge event coming up.

1:43:28This is now a global event sponsored by the california

1:43:32Academy of Sciences but it's a really fun one that I'm always

1:43:35a champion of because during the City Nature Challenge

1:43:40it's this year, I believe it is happening in I think

1:43:45May 30th is when it starts.

1:43:48But for several days, you can take your iNaturalist app

1:43:52on your phone, you can go you can

1:43:55record any sort of biodiversity in your surrounding plants,

1:43:59animals, fungi, and upload those observation

1:44:02pens to a naturalist and it helps scientists who

1:44:05study these organisms by showing them where and when they occur.

1:44:10And it also is an amazing tool for teaching

1:44:12people and learning yourself about the organisms around.

1:44:16If you've ever wondered what kind of mushroom

1:44:18is that that i see or what kind of plant is this,

1:44:22you can use this.

1:44:24I naturals platform to identify just

1:44:25take a picture and upload it, and it will identify it for you

1:44:28and the city Nature Challenge is a friendly competition

1:44:31to try and get as many of those types of observation shins.

1:44:35During this weeklong period and so that's a lot of fun.

1:44:38And that's great for youths who are

1:44:43interested going out and spending some time outdoors.

1:44:46And then finally, we have this new event that we're

1:44:50coast sponsoring the Green home tour where this is gonna

1:44:53be occurring in two successive sundaes in June June 6

1:44:57and 13th and these are virtual tours of homes of residents

1:45:01in reno and in our surrounding areas

1:45:04where they've been able to completely

1:45:06electrify their homes, they're completely off fossil fuels.

1:45:10And so these virtual tours allow anybody who participates

1:45:14to go through and see the modifications that have been

1:45:17made to the home to hear the process experienced

1:45:21by the homeowners hopefully acting as a bit of a catalyst

1:45:25for other people who are interested in making these same

1:45:27changes to their homes.

1:45:28And with that, I'd like to thank so as you've

1:45:31seen you know we do a lot.

1:45:33We are a volunteer force of just over a dozen people.

1:45:37But we're all over the place alfredo really active

1:45:40doing lots of things.

1:45:42And we wouldn't be able to accomplish all these tasks,

1:45:45of course, without the wonderful support that City Council

1:45:48that you all have provided with us.

1:45:50Provided to us through the years.

1:45:52And so I thank you for your time.

1:45:54Thank you for that support.

1:45:58Thank you, Neil incredible presents

1:46:00and are there any comments or questions

1:46:03from our city council members.

1:46:05I have a comment.

1:46:06Mayor Pro Tem Thank you Dr. Sissy.

1:46:10I didn't recognize you It's been a while yet.

1:46:16But I want residents to know how grateful I am to have

1:46:21Neal part of our community.

1:46:23He's a neighbor that lives on top of a hill here.

1:46:28And and represents the North side,

1:46:31and he's part of the Sierra Club West counting group.

1:46:35So what.

1:46:36No And everything that you do with the Sierra Club

1:46:40goes hand in hand with what you do with equal say so.

1:46:45You are part of the new blood that we

1:46:48have that equals t So thank you for your contribution.

1:46:52And I look forward to seeing you in person Coats COVID.

1:46:56One time.

1:46:57Hopefully.

1:46:58Thanks so much.

1:46:59Thank you.

1:47:00A member Rudnick thank you Neal.

1:47:03That was a fantastic presentation.

1:47:05It really sets a very high standard

1:47:08for all the other boards and commissions in the city.

1:47:12You guys are doing.

1:47:14So much.

1:47:15And I'm completely impressed.

1:47:17I'm the Osorio board.

1:47:18Our board director member for recycle more, which

1:47:22is our regional Integrated Waste Management authority and we're

1:47:26really closely developing thirteen eighty 3,

1:47:29which is the composting Mandy would be really fantastic if we

1:47:33could get somehow a synergy between the policy that's being

1:47:38developed for the city and with our regional partners

1:47:42and it'd be fantastic to get on board because the

1:47:44when you briefly covered the presentation.

1:47:47But for the public are watching that soon

1:47:49it's going to be mandate that organics are removed

1:47:53from your typical waste stream and are

1:47:55going to be the mandate to compost so thank you so much.

1:48:00The presentation.

1:48:01Yeah, thanks so that's a great point.

1:48:03I think one of the big challenges

1:48:05is going to be spreading the word

1:48:07and getting the residents of El Serino and state wide really

1:48:11to change their practices and adopt this as sort

1:48:14of a normal course of action.

1:48:16And so that's something we can definitely help out with.

1:48:20We have within QC we have a finely honed

1:48:23mechanism for disseminating information

1:48:25about events or policies.

1:48:28And so we're happy to help do that for this issue as well.

1:48:35Thank you again Neal council member Abel I'd

1:48:48like to Thank you, Neil for that great report.

1:48:52I saw in it a number of really interesting ideas and ways

1:48:57that take us one step further.

1:49:00You see.

1:49:02So i all I can say is right on.

1:49:07And keep it going.

1:49:09Great, thank.

1:49:10Thanks.

1:49:11Council member cNN thank you so much for getting us started.

1:49:15All those years ago.

1:49:17You're welcome coughing my fear.

1:49:22Do you have any comments.

1:49:24I do.

1:49:25Just a quick question as spending.

1:49:27What is the status of the food where ordinance yes.

1:49:31Yes I mean.

1:49:33So we reviewed the food ordinance within the EU sea

1:49:37and provided comments back to council.

1:49:40But I think with economic downturn associated

1:49:42WITH THE COVE it shut down you know it was just I think too

1:49:49difficult a time to put an extra burden

1:49:51on top of our local businesses, especially

1:49:54our small businesses.

1:49:56And so on.

1:49:57So I'm not I don't know what the timeline is moving forward.

1:50:00I'm not sure.

1:50:02If Aaron near FDLE knows Karen and I have talked about this.

1:50:06It's kind of happened before the end of the year.

1:50:09Like Karen that is what we.

1:50:11Well i was going to say Your Honor

1:50:13you have been the one who has certainly been

1:50:16leading this charge as well.

1:50:17And I've been working with staff and I

1:50:19agree with Neil we've been we've just been trying to make sure

1:50:23that we're not overburdened our small businesses that has set

1:50:26certainly been a consideration.

1:50:27But that doesn't mean that we don't we don't want

1:50:31to continue with that value.

1:50:32So our hope is to be able to at least pass this legislation

1:50:35by the end of the year, and we can consider different phasing

1:50:39for implementation perhaps, if that

1:50:41is depending on where we are.

1:50:43But definitely something that we would

1:50:44like to be able to do this year you

1:50:47know we're really looking forward to seeing that

1:50:49go forward.

1:50:50Yes.

1:50:50Thank you for that.

1:50:51I was going to ask about that.

1:50:53Thank you for your progress on that.

1:50:54I'm the lease to this commission and I'm

1:50:57very proud of then they always do the best the most

1:51:00it's always full.

1:51:02There's never an empty seat, and it's part of the reason

1:51:06is so famous for our environmental quality

1:51:08and our activities in the community in our county

1:51:11it's just do incredible stuff.

1:51:13So I thank you for the food where progress.

1:51:15I also want to thank you for any climate update

1:51:18that Janet Abel sent in Tessa Rudnick.

1:51:21We'll be dealing with coming up here.

1:51:24That's critically important.

1:51:26I also want.

1:51:28Thank you for the new emphasis you have on equity

1:51:32and environment justice because another thing

1:51:35that I mentioned when I was sworn in as mayor is I really

1:51:38and I've talked to our city manager about this

1:51:41and Gabe Pinto is on a new Commission for equity.

1:51:45We need to have in our analysis on our agendas

1:51:49every item that we consider social and racial equity.

1:51:54So that every item that we deal with in our city council

1:51:59deals with social or racial equity.

1:52:03That's something that i think it's timely.

1:52:06Our city manager's been supportive of that.

1:52:09And that's something I'd like to send back to council member

1:52:13much of Jarmon her Committee on Human Relations

1:52:16to figure out how we get there.

1:52:18What are the considerations we have when council on staff

1:52:21thinks of this.

1:52:22So Enviro mental justice is that the key and the center

1:52:25point of this.

1:52:26I want to thank you very much for this move forward.

1:52:29It's a productive year there are things we can do that.

1:52:33Don't impact our budget.

1:52:34That's one of them.

1:52:36Thank Thank you, Neil.

1:52:38Really too much for your support.

1:52:41Thank you very much carry on.

1:52:48Thank you.

1:52:49There are no public hearings in this city council meeting.

1:52:54So I'd like to move to public policy

1:52:57matters and no exceptions.

1:53:00A is the general fund long term financial forecast budget study

1:53:04session and can we have a staff report on this, please

1:53:15and Karen are in your honor.

1:53:17Just one moment.

1:53:19I'm writing the PowerPoint all right writes thank you so much.

1:53:44Again once again, good evening city

1:53:47council mayor and city council Karen pink the city manager.

1:53:51And this is a study session to discuss

1:53:54the general fund long term five year forecast and a budget.

1:53:59A budget discussion marker side of the finance director

1:54:02is here with me and we are we're going to tag team

1:54:06a little bit on this.

1:54:08So please feel free to stop us if you have any questions.

1:54:12We're going to go over.

1:54:13First kind of the review of the five year

1:54:18forecast what the assumptions are that we included

1:54:21within that forecast just a couple of alternate scenarios

1:54:25that we have also looked at.

1:54:27As far as what we're able to present

1:54:31to you in this forecast.

1:54:33And then open it up for questions or discussion.

1:54:37Let's jump in.

1:54:39So first and foremost, we just wanted to share

1:54:42that the five year forecast.

1:54:44This is meant to be our high level

1:54:46planning tool that is used to inform the budget development.

1:54:49So it's not the budget, we do this

1:54:52and we update this at least yearly we update it internally,

1:54:55but we also update it yearly in order to try to have that

1:55:00again, just as the name implies, a forecast as to what

1:55:04might be in the future.

1:55:05This is going to be the starting point for us

1:55:08for our expenditures that we can use to start

1:55:11to develop the city's budget.

1:55:13And if you recall, we this is the same procedure

1:55:16that we did last year and early 2020 we prepared this forecast.

1:55:21And we provided it to the city council.

1:55:24I believe in February and as you may remember those of you who

1:55:28are on the council at that time that is the results of some

1:55:31of those discussions with respect To the forecast

1:55:34was that you directed the staff to this

1:55:38was pre pandemic to do the initial $2 million

1:55:41in budget reductions.

1:55:42So this is, again, the starting point for that conversation.

1:55:45It allows staff to have direction

1:55:47to go back to sharpen our pencil and

1:55:49you're going to hear me say that probably more than once

1:55:52tonight.

1:55:52As far as how we're developing the budget

1:55:55and what we need to consider.

1:55:57So I do want to emphasize that in again, this is there's

1:56:02a lot of there's a lot of things that have been incorporated

1:56:05into this discussion that you have already also seen

1:56:08in various discussions and also in the state auditor's report

1:56:12the city has a comprehend financial policy.

1:56:15And that is developed that has been

1:56:17developed in conjunction with the Fab

1:56:19the fab reviews annually.

1:56:21They were not able to review last year.

1:56:24I think we're overdue because I think

1:56:27because pandemic and some of the meetings

1:56:29weren't able to be held.

1:56:30So I know that this is going to be on likely on the fabs

1:56:34future work plan.

1:56:36But this is something that is developed

1:56:38and approved by the City Council on last time it was approved.

1:56:42Any changes to the was approved 2019 and in 2019

1:56:46that Copperhead financial policy also

1:56:49included the established bit of an emergency

1:56:52and disaster recovery fund.

1:56:54In addition to a minimum goal of 10%

1:56:58of projected General fund operating expenditures

1:57:00in each fiscal year.

1:57:02So and the city has not achieved that minimum goal

1:57:06in many years.

1:57:07And in fact, looking back the closest we've been

1:57:11was back in 2012 so this has been a series of years

1:57:15that we have not met this goal a series of.

1:57:18And again, various decisions that

1:57:20were made various actions that were taken

1:57:23and the council did indeed take that as an action back

1:57:27during the first recession in Two thousand eight

1:57:30through two thousand eleven those years, including the loss

1:57:34of redevelopment council did take that action

1:57:37in order to begin to draw down reserve in order

1:57:41to maintain services.

1:57:42And again, that has not been recovered.

1:57:45And so given where we're at.

1:57:48This is something that staff wants to make sure

1:57:50that the council is focused on from our perspective,

1:57:53that is what we're focusing on.

1:57:55And the direction we would like to seek from you tonight

1:57:59is that we are indeed moving in that correct direction.

1:58:03So the general assumptions and I apologize for the wordy slide,

1:58:06I usually don't like to put a lot of words on slides,

1:58:10but these are a lot of issues that we outline in the agenda

1:58:13Bill and so I just wanted to make some notes so that the 20

1:58:171920 actuals and The COVID 19 projections from this current

1:58:22fiscal year form our base line.

1:58:25We ended the fiscal year with a general fund excuse me total

1:58:30fund balance of a negative 1 ten thousand dollars while was much

1:58:34better than the forecast of perhaps the million

1:58:37dollar deficit a couple of million deficit

1:58:39that we were worried about that, you

1:58:42know that doesn't mean that we're that it's a good thing.

1:58:46It's still a negative fund balance as we've brought that

1:58:48to you several times over the past several months

1:58:51that we've reviewed both the revenue expenditures

1:58:54projections based on trends and performance

1:58:56and made modifications and we incorporate the modifications

1:59:00as well you passed on February 16th with the mid-year budget.

1:59:04So the additional assumptions that we have in this forecast

1:59:09include not any.

1:59:11No new additional positions.

1:59:12So we're not creating any new positions

1:59:15in the current vacancies would remain for the most part,

1:59:19there would be no This also assumes no cost of living

1:59:22adjustment for all management confidential staff

1:59:25currently the management confidential staff are not

1:59:28only have not only received cola but they are also working on 26

1:59:33furlough days, we are including the status in this forecast,

1:59:38we are anticipating there could be a moderate,

1:59:42you know the recession will continue that recovery will

1:59:46begin perhaps mid next year.

1:59:48Again this is completely dependent upon how

1:59:51COVID 19 goes, how we're able to recover.

1:59:55How the economy in general is able to recover.

1:59:58How we progress through the tiers but even again,

2:00:01we have to be super cautious about that.

2:00:04And this a lot of the assumptions that we're making

2:00:07are really truly our best with the best information

2:00:10we have right now recognizing we are still in an incredibly

2:00:13volatile situation.

2:00:14And I will go over some and Mark and I will go over

2:00:18some of the assumptions with the expenditures revenues

2:00:21in more detail in just a moment We are also making

2:00:25the assumptions that city is going to meet all of its debt

2:00:29obligations without default, including our train our

2:00:32we would like to restore our pre 2016 bond

2:00:35ratings by next year at the latest for I think,

2:00:39obvious reasons.

2:00:40But certainly assist us in many ways.

2:00:44If nothing else This is something that helps alleviate

2:00:47a lot of concerns, including of the state

2:00:49auditors at the excuse me The forecast also

2:00:56includes writing off the general fund advance

2:01:00to the city's redevelopment agency

2:01:02that's one point three to $5 million.

2:01:05So This is a claim this, advance to the general fund

2:01:10was a were made to repay a claim against the city

2:01:14by the state, California Department of Finance

2:01:16and this is in respect to the dissolution

2:01:20of the Redevelopment Agency.

2:01:23This claim was settled in 2018 which means that the state

2:01:27told us we owed this money.

2:01:30We disputed that we owed that money.

2:01:32However when we engaged in a settlement with them.

2:01:35We did pay the money, but we entered a lawsuit to try

2:01:39to recover the money back.

2:01:41So the money is paid however on our books.

2:01:45It is hole it has been held as a non spend full receivable,

2:01:51and that means that because it's there that has been included

2:01:55as part of our on spendable reserve balance

2:01:58that has been essentially out there against.

2:02:02The court has decided as of last week

2:02:05that they have denied our appeal.

2:02:07And so we at this point, we don't have any intention

2:02:12of moving further.

2:02:14Again we do not owe one point $3 million in cash.

2:02:18However that one point $3 million

2:02:20does need to be written off as a general fund expense what

2:02:25that means is it would have to be deducted from our fund

2:02:28balance and it is an accounting journal entry in order

2:02:32to take this off of our books.

2:02:35I know that that can seem complicated to the accountants

2:02:37out there you you understand more than you even as far as

2:02:42how the accounting works with that.

2:02:44And Mark, I don't know if you have

2:02:46any if you'd like to jump in there to make

2:02:49any clarity out of that.

2:02:51But essentially, what this means is

2:02:52that we had tried to recover.

2:02:54One point $3 million.

2:02:55If we had we could add that to our fund balance.

2:02:58But because we can't we are going to write

2:03:01it off our fund balance.

2:03:03Any additional thoughts on that.

2:03:05I think you nailed it It's a dual entry

2:03:08into the transaction.

2:03:10There is no movement of cash.

2:03:13It just reduces our receivables by the corresponding amount

2:03:16and as a consequence, the fund balance, which is the net.

2:03:20But declines by that to 5 with no impact on cash,

2:03:24which we have ever had.

2:03:26We got the money.

2:03:27Cash would gone up and the fund balance would remain the same.

2:03:31That's about all that's different Thanks

2:03:35on the additional assumptions at this point.

2:03:38And this is also certainly for further discussion.

2:03:42And as I'm sure that the public will has engaged already

2:03:45and we'll continue to engage in discussion is at this point,

2:03:48we have assumed no changes to service

2:03:50delivery in this forecast.

2:03:53The federal relief money.

2:03:54This has been a hot topic, all of us.

2:03:58And I was just on a phone call i'm sorry a video call whatever

2:04:03you call those these days with the League of California Cities

2:04:06and the National League of Cities

2:04:07discussing the federal relief bill this is

2:04:10an unprecedented direct payment by the federal government

2:04:14is all nineteen thousand cities in the United States.

2:04:19This has not been done before.

2:04:21Our Alex mission at this point is based on our population

2:04:26and right now, again this could change.

2:04:29This is the current.

2:04:31This is the current allocation that we have

2:04:34been given would be $8 million.

2:04:36It would be paid over two years two annual installments

2:04:40and so I just want to make kind of another note about that.

2:04:45First the first and foremost, this is This

2:04:48is a wonderful relief certainly to cities not just ours,

2:04:51but to cities across the country.

2:04:53What it means for us, though still

2:04:56is that according to the call according to Cal cities

2:04:59according to the National League of Cities

2:05:02there are still regulations that are being worked out

2:05:06with the United States Treasury who will be disseminating

2:05:08the money to the state it needs to go

2:05:11to the state within 60 days.

2:05:13And then the state is required to disseminate it to the cities

2:05:17within an additional 30 days.

2:05:19So we do expect this fiscal year.

2:05:22However it is more flexible in its use

2:05:24than the CARES Act funding was it is meant

2:05:29to stabilize local governments.

2:05:31It can be used for things like lost revenue

2:05:35There was there's a series of appropriate spending

2:05:39that can be used on it doesn't have

2:05:42to be simply COVID related reimbursable

2:05:44expenses like the Carers ACT.

2:05:46However there are a few guardrails on it.

2:05:49It cannot be used for pension liability.

2:05:52It cannot be used for the unfunded pension liability.

2:05:55So I know that there were some questions before about

2:05:59whether or not we could use some relief

2:06:00money to open a Section 115 trust that

2:06:03does not appear to be possible.

2:06:05Again we are still waiting on some of the regular sessions.

2:06:08But at this point, we're going to assume that that's

2:06:11not going to be used.

2:06:13It does need to be spent by the year 2020,

2:06:17for the end of December 2020 for we will have to certify

2:06:20what the funds are used for.

2:06:23And so this is, again, we will be

2:06:25able to bring this back to you.

2:06:27We are verifying that they can be used

2:06:29again, for things like lost revenue

2:06:31being to replenish reserves.

2:06:33A lot of cities have had to use reserves over time.

2:06:36And so this wouldn't be necessarily

2:06:38we wouldn't be the only people looking

2:06:41to try to replenish our own reserves

2:06:43or to try to be able to work with our revenues.

2:06:48That way.

2:06:49But that'll still be determined.

2:06:51So and it goes back to the fiscal year

2:06:53before the pandemic.

2:06:55That that is sort of our baseline losses

2:06:57that we would be looking at.

2:06:59And we're looking at least 2 million

2:07:03worth of losses each year since.

2:07:05And so that is certainly something that

2:07:08is like i'd very much welcomed.

2:07:11But we are still needing to clarify with the US Treasury

2:07:16with the state all of the requirements behind how we

2:07:20how we certify that many.

2:07:22And so in this assumption.

2:07:24However we did include.

2:07:26We didn't include on any sort of specific line item,

2:07:30we just kind of put it at the bottom of the chart

2:07:33as you've seen in your package.

2:07:34And as I'll show in a moment.

2:07:36But that it definitely does add to our revenues.

2:07:38And so we will be able to we will

2:07:40be able to work that into we have

2:07:42worked that into the forecast.

2:07:44So that we know that's coming.

2:07:46And again, it's over two years.

2:07:48So we're assuming four point $8 million.

2:07:52So two point $4 million each year

2:07:55going on to revenue assumptions.

2:07:58And I'll Oh and I'll also ask if he wants to jump in on This is,

2:08:04again, kind outlined in detail in the bill,

2:08:07but the sales tax projections and the property tax

2:08:10projections are based forecasts that we

2:08:12are developed by HDL company.

2:08:15They are sales tax and property tax consultants.

2:08:18We work with them closely and they have prepared

2:08:23all of these projections with respect to the sales

2:08:26tax and property tax.

2:08:28The next few years.

2:08:29So you know again This is for property tax, sales tax

2:08:33and vehicle licensing fees those collectively

2:08:36represent about half of our general fund revenues.

2:08:40We experienced a taxable value increase of about six

2:08:43point six for property taxes, which

2:08:46was above the county average.

2:08:48However we do know that next year,

2:08:51the state has already instructed the counties

2:08:53to increase property taxes by only one as opposed to 2%.

2:08:58So this has been factored into that structure.

2:09:01You know based on their numbers they are expected

2:09:05to grow at about a 5% rate.

2:09:07And they also expect that the past few quarters sales

2:09:11tax gains in county pool receipts that were

2:09:13generated by online shopping.

2:09:15So for everyone who ordered from Amazon and other deliveries

2:09:19to your houses that certainly has been helpful for us.

2:09:25Statewide however in this kind of goes to the recession

2:09:28conversation HDL doesn't anticipate

2:09:31that we're gonna have a significant recovery

2:09:33until about 2020 to.

2:09:35So it depends, of course, on all sorts of factors, including

2:09:39the pandemic but also are our sales

2:09:42tax base some recovery will likely be a shift

2:09:45back to non-taxable services.

2:09:47So full recovery could look different from

2:09:51after the pandemic them before.

2:09:53So this is just something that we need to make sure that we're

2:09:56keeping a close eye on it.

2:09:58We're working closely with our consultants on this matter

2:10:02and in updating accordingly real property transfer tax.

2:10:09We have budgeted for two point six million

2:10:12in this fiscal year.

2:10:14And we've already that target, which is wonderful.

2:10:16This also is something we need to make sure

2:10:19that we're keeping a very close eye

2:10:21on the current housing market.

2:10:24You know we're looking we could possibly get anywhere over 3

2:10:28to $5 million this year if the market

2:10:31holds which again, is all subject to change

2:10:35and volatility.

2:10:36So we're not increasing this budget at this point.

2:10:39However we're making an assumption

2:10:40of about a $3 million flat rate over the next five years.

2:10:45Again this could also shift based on the market

2:10:49and a lot of this is because of the median home

2:10:52selling price in Eldorado has hit over $1 million.

2:10:56So what's referred to as a million dollar city

2:11:00So even if there's maybe some less

2:11:03inventory the prices have been going higher because of demand.

2:11:06And so that has certainly been benefiting us.

2:11:09And we appreciate that, of course

2:11:11but we do need to make sure that we're

2:11:14keeping a close eye on it.

2:11:16And this has absolutely been a huge part of our recovery

2:11:19and will continue to be a huge part of our recovery.

2:11:24Other taxes we're anticipating about an annual growth of 2%

2:11:27because right now inflation is just not happening.

2:11:31And we're also anticipating that close to a 3% increase

2:11:36in total revenues over the 1920 actual revenues just again,

2:11:42based on CPI and based on the trends

2:11:45that we have noted department revenues the 3% increase

2:11:49generally speaking is because, as you all know,

2:11:52we are in got contract with all of our bargaining units

2:11:55except for the management confidential group.

2:11:57So we do have to assume that those increases will

2:12:00happen as of July 1 next year.

2:12:03And then again, revenue assumptions

2:12:05I know that this has been asked about by several of you.

2:12:10And by several residents at this point,

2:12:12I am certainly not recommending any new taxes anything to go

2:12:15on the ballot at this point.

2:12:17And I am also not anticipating any significant revenues.

2:12:21We know there will be developments that

2:12:23will go online sometime next year

2:12:25and the year after we know that there are,

2:12:29for example, our new cannabis businesses that

2:12:31have not opened yet.

2:12:33They are slated to open.

2:12:34Maybe at the end of this fiscal year next fiscal year.

2:12:38Those are all things in the hopper

2:12:41but I am not including in this revenue

2:12:43because I do not believe it would be prudent to do so

2:12:46until we actually have receipts and we can start to see trends

2:12:50So any additional thoughts on revenues

2:12:52before I expenditures I would just add that when taking

2:12:57the long view thing that's important not to lose sight

2:13:01of the woods for the trees and as Karen

2:13:04pointed out sales taxes, property taxes real property

2:13:07transfer taxes and the vehicle licensing fee is also

2:13:12property tax constitute about 70% of general fund revenues.

2:13:17So what does that mean for us, it

2:13:20means that when we make these forecasts based on trends

2:13:23we seek the assistance of experts in this field

2:13:26primarily HDL and company and HDL has a pretty deep data

2:13:30base of historical taxes within the city boundary

2:13:36that they use.

2:13:36They have a model that they share with us.

2:13:39And that's how they come up with the forecast

2:13:42for 70% of general fund revenues, which

2:13:44is significant to be amount of revenues.

2:13:47That's being forecasted with the assistance of Clinton policies.

2:13:51And by experts in those fields, and even has moves over

2:13:55to the expenditure assumptions.

2:13:57I might just point out to you.

2:14:00The same way in 75% of general fund expenses

2:14:03are staffing related.

2:14:04Right.

2:14:05So these are pretty much governed by represented units

2:14:09you have just 29 non represented people out

2:14:12of a total of four seventy fTD the remaining Hardin

2:14:1740 people folks are represented by one bug or another.

2:14:21And those define exactly how that costs books

2:14:26in the upcoming it's so 75% of general fund expenses

2:14:29are staffing connected staffing related.

2:14:31So that's the big, big change tens of

2:14:34and I thought i just mention that because it's really easy

2:14:37to get lost in the detail as we go through these slides

2:14:41or do you go to Great.

2:14:44Thanks Mike so in within the personnel costs,

2:14:47which is on the slide before you as indicated.

2:14:50These are the wages that we have assumed the personnel costs are

2:14:54effective as of this next fiscal year assumes a 3% wage growth.

2:14:59Again this is what is included in the M.O. use retirement you

2:15:04all saw the presentation from NHK advisors,

2:15:07our contribution are going to continue to rise

2:15:11and calipers discount rate dropping

2:15:13from six points up to 7% will impact the payments

2:15:19that we make medical and dental work we're budgeting

2:15:24for 3% annual increase and again, the that will continue

2:15:29to rise at this point, we are not planning

2:15:33for a prefunding retirement section 115

2:15:36trust liability at this point.

2:15:38Again we don't believe that we'll be able to use

2:15:41any relief money to do that.

2:15:43So if there are if there is going to be seed money in order

2:15:48to try to put aside for such things

2:15:51we would look to try to get to our fund balance first

2:15:54so that we can then continue to what we would continue to do

2:15:58is make those monthly payments as we do right now.

2:16:01And again benefit growth is about a 3%

2:16:04based on the 10 year cPI trend that over the Bay Area

2:16:09the Bay Area CPI that we look at.

2:16:12As far as or as far as our wages and the general area

2:16:17CPI over time, this has been this has certainly

2:16:21been something that we have focused

2:16:24on you know that we have filled the vacancies

2:16:27in the fire department.

2:16:29So we expect the overtime in the fire department

2:16:32to be cut essentially in half from previous years,

2:16:36which is a good thing.

2:16:38The O E S which is, as you know, the office of emergency

2:16:43services because we have an O e s truck in our fleet

2:16:46and we work with the California Department

2:16:49California Office of Emergency Services which Oh yes

2:16:52stands for.

2:16:54We work with the state in order to be deploy to various fires

2:16:58and obviously, as you know, the fire season

2:17:01has just gotten increased.

2:17:02And we have been sending a lot of our folks

2:17:05out doing some amazing work.

2:17:08We are reimbursed for all of those costs

2:17:11and all of those overtime and we track that separately.

2:17:16And so we're expecting a minimum five K of five thousand

2:17:21this year it actually went up to eight fifty

2:17:25thousand dollars so it's totally dependent on the fire season.

2:17:29However we have put a placeholder in there

2:17:31for five thousand dollars.

2:17:33Knowing that any increase in expenses for the Oh yes

2:17:36will be offset completely by revenues

2:17:38that we will get back from the state,

2:17:41and then the Police Department.

2:17:43We also expect to have about a half a million dollars

2:17:46over time.

2:17:47There have been reductions in the police department

2:17:50as in vacancies that are continuing

2:17:52and of positions that have been eliminated.

2:17:54And so we will just have an expectation

2:17:57of about five thousand of police department overtime.

2:18:00So generally speaking, that is what we will expect for all

2:18:04of public safety of overtime in this assumption

2:18:08And then again, this is going to be a blend of the one time cost

2:18:13reductions, which are the furloughs that have been

2:18:15implemented non-public safety staff and ongoing reductions

2:18:18include position eliminations deferrals of colas

2:18:22and maybe perhaps increased employee contributions.

2:18:25This is all subject to be discussed further.

2:18:28But at this point, we are continuing this best status.

2:18:33For non personnel costs again, we're

2:18:36using the 10 the Bay Area year CPI 3% expense growth

2:18:41for utilities REPAIRS MAINTENANCE PROFESSIONAL

2:18:44services and other contracts.

2:18:47You know as pointed out personal costs are about 70 5

2:18:52of our general fund, which means that these are about 25%

2:18:56of our general fund and a lot of them

2:18:59are things like contracts or things that would be we

2:19:03need to do that.

2:19:05We don't do on our own dispatch Animal

2:19:08Services i.T. maintenance and soft

2:19:10where things of that nature.

2:19:13And so these are the payments, insurance payments.

2:19:16So all of these are not necessarily set by us.

2:19:21They are set by other agencies or

2:19:23they're set by other entities.

2:19:25It also includes debt service payments and everything

2:19:28that we need to make sure that that is

2:19:31adhering to a payment schedule.

2:19:33So those are some of those costs are just, again,

2:19:36not under our control infrastructure at this point,

2:19:42we're assuming about a one sixty five

2:19:45thousand dollar contribute.

2:19:46Once again, we are looking to want to we will confirm this

2:19:52with the city council what staff planning is to target

2:19:56that minimum 10% of operating expenses eventually

2:20:00the goal of $6 million for the emergency fund

2:20:04could be funded at about five thousand a year contribution

2:20:10once we get to the 10% point.

2:20:12Again this is going to require a whole lot of time and effort,

2:20:17but at this point with the relief

2:20:19money coming in with the expenditure assumptions

2:20:22that we're making.

2:20:23We just we believe that it's prudent to make sure

2:20:27that the target of that minimum 10%

2:20:30is met sooner rather than later.

2:20:32It alleviates so many different issues obviously,

2:20:35but it's also in, we're making sure

2:20:37that we're in compliance with not only our own policy

2:20:41but even getting further than that to the extent

2:20:44to the recommended policy by the GFA.

2:20:48And then again, the trend yield assumes 3% it can be lower.

2:20:54If it's issued at a premium.

2:20:56The cost of issuance as you see, we assume

2:20:59one twenty thousand dollars.

2:21:01And again the goal in increasing our fund balance

2:21:04will meet the goal of us being able to reduce our trend.

2:21:07So that we don't not only don't we rely on it.

2:21:10But that it's not required.

2:21:12That is certainly what we are wanting to move to.

2:21:15We are still going to need to use

2:21:17this tool for a few more years.

2:21:19But we are really hopeful that the faster we can get

2:21:23to our fund reserves built back that we

2:21:26will not have to rely on this tram and any additional funds.

2:21:30Yes there's just a point about 75%

2:21:33of general fund expenses personnel

2:21:36and as I look back over the last couple of years behead

2:21:43the combination of personnel costs,

2:21:47including purrs well up from some around 75% to about 70 70%

2:21:54at the end planning horizon, which is to 25, 26,

2:21:58and the significant increases in each of these years

2:22:01is obviously the first component calculus

2:22:03component that is presented to council at the last meeting.

2:22:07In fact, recently just pointed out

2:22:09that there was a difference between the budget for 1890

2:22:12and 2021 and the increase was 8% or something like that

2:22:16and the folks that put that information

2:22:18out about failed to record is that 75% of the budget

2:22:22is driven by staff.

2:22:24And staffing costs driven by first costing leases.

2:22:27And that directly contributed to the increase in budget costs,

2:22:30and they failed to recognize that.

2:22:33And we just pointed out that the budget increased by 8

2:22:36and that was no explanation for that.

2:22:38So I just want.

2:22:39I can't help but mention that in passing because there have been

2:22:42a lot of inaccuracies that are being

2:22:44circulated pretty good today.

2:22:45And I point these out as we go along in this five

2:22:48forecast Mexico okay.

2:22:55So I appreciate that this is somewhat

2:22:57small on This is we're trying to fit this on one screen.

2:23:04But the this column right here that is shaded

2:23:08is essentially this looks fine.

2:23:11Is this fiscal year.

2:23:13This again, is the baseline forecast

2:23:16these columns here have to do with the actual

2:23:20from the previous fiscal year going back to 2017 18.

2:23:25This is including the midyear projected end of year four

2:23:30this fiscal your 2020 2021.

2:23:33So this column is where we expect to land this year.

2:23:40This is where I would point out that here as discussed

2:23:44during the mid-year budget process This is the surplus

2:23:48that we would expect to have We have inserted a line

2:23:52for Kogan federal leaf again.

2:23:53It would be somewhere within these the scope

2:23:56of these revenues.

2:23:57But right now it's just a placeholder here,

2:24:00and we're all still including the one point $3 million

2:24:04write that would come from our fund balance.

2:24:07So at this point, our net would be seven million dollars.

2:24:13If you add that to the fund balance

2:24:15that we ended last year, which was a negative 1 hundred ten

2:24:19our expectation is that we would have a one

2:24:22point $6 million fund balance as of June 30,

2:24:27which would be 3% here.

2:24:30This forecast again considering our very conservative estimates

2:24:35for the revenues and a fully loaded non

2:24:40sharpened pencil discussion of where we're

2:24:43at with our baseline budget.

2:24:44This is where we would expect to land at this point,

2:24:48we would expect that we would actually

2:24:50not have a surplus next year.

2:24:53Again this is just the first cut.

2:24:55So that's why I want to make this is not the budget.

2:24:57This is our first cut at this what we would expect

2:25:00with all of this being assumed we

2:25:03would be under 1.2 5 3 million.

2:25:06We would receive another two point $4 million

2:25:09per federal relief.

2:25:10This would be the beginning fund balance this year.

2:25:13I'm sorry.

2:25:14This would be the ending fund balance.

2:25:16And then we would add that to next to

2:25:19what would end this year to have a two point $4 million

2:25:23fund balance, which would be about half

2:25:26of our minimum reserve goal.

2:25:28I want to point out that with the federal relief money

2:25:32this puts us ahead of where we thought we would be

2:25:35for the fiscal response plan.

2:25:37However we're still only half of our minimum goal.

2:25:39And so again, this is the first cut in out years.

2:25:44This is what is concerning to us.

2:25:46You'll see that this ends up going negative.

2:25:49Why a lot right here helpers contributions.

2:25:52As pointed out these increase significantly over time

2:25:56is the expenses that we anticipate.

2:25:58And again, here we have kept a lot flat

2:26:03So this is why we're being again,

2:26:06super conservative about this.

2:26:07These revenues could increase These expenses will decrease.

2:26:10But this is the first cut of the baseline

2:26:13that we are looking at.

2:26:15And from here, this is where we need

2:26:18to make sure that we are reducing expenditures

2:26:20or increasing revenues.

2:26:21But I'm not counting on the increased revenues.

2:26:24I'm counting on what we can control to do to the degree,

2:26:29we can which would be expenditures Yes, I think

2:26:36you've covered most of that.

2:26:38And I've got to jump the third slide on this okay.

2:26:42Yeah.

2:26:43So as we as we outlined in the agenda

2:26:46Bill and we have also prepared to additional alternative

2:26:50scenarios that would include budget

2:26:53reductions that would get us closer or at our reserve goal.

2:26:57This is what we're taking a look at next.

2:27:00And this is what we want to bring to you for discussion

2:27:03and perhaps direction.

2:27:04So the first scenario proposes a $1 million

2:27:10reduction in baseline expenditures.

2:27:12So that This is all the same here.

2:27:16The difference becomes right here,

2:27:18this red no permanent budget reductions

2:27:21would be a million dollars and by permanent we

2:27:25mean ongoing budget reductions.

2:27:27So that's not necessarily only furloughs it would need

2:27:32to be something more significant like cola deferrals or thorium

2:27:38losing my train of thought eliminating position

2:27:40and things of that nature would need to be permanent.

2:27:43So that is what we're looking at although we anticipate

2:27:48that there will still have to be a blend of one

2:27:51time and permanent costs, but this is, again, assuming this

2:27:55that would go across the board.

2:27:57It would have a significant impact over the years, a one

2:28:01million reduction changes this bottom part here to only half

2:28:04a million dollar difference if you add

2:28:07the two point $4 million here.

2:28:09This would have us end the year at one

2:28:12point Eight million, which would add to the one point 6.

2:28:16And we would have a 3 point $4 million fund balance,

2:28:20which gets us to 8%.

2:28:22Again better than we've been in close to 10 years,

2:28:25not at our goal.

2:28:27But This is what we.

2:28:29This is what we could possibly achieve with a million dollars

2:28:32in reductions I will say that a million in reductions.

2:28:36Again because we have assumed this all fully loaded there

2:28:40and the department's already started

2:28:42to analyze their budgets already started to analyze the revenues

2:28:45to take a look at where we're at and kind of compare

2:28:49next year to this year's cost.

2:28:52One of the things that we're still not sure about

2:28:54is what our expenses will actually

2:28:56look like going through because we're super

2:28:58hopeful for example, that our recreation programs will be

2:29:02able to ramp back up not just that would not just

2:29:07increase our revenues, but it would

2:29:09also even out our expenditure.

2:29:11We also know that we're not sure we are already we've already

2:29:14announced that we're not going to have events for the rest

2:29:18at least for the rest of the summer.

2:29:20So this things like July 4th and Earth Day and all those things

2:29:24have been canceled that goes in.

2:29:26That impact goes the next fiscal year.

2:29:28So there still may be some reductions in expenses

2:29:31that we, again, are going to be sharpening our pencils

2:29:35and taking a very close look at this is certainly an achievable

2:29:38goal for all of us to be able to obtain without major service

2:29:44delivery issues.

2:29:45But I just want to point out that this is something that

2:29:50would be a minimum that we would be able to that,

2:29:54we want to be able to have the Council discuss have us take

2:29:58a look at mark given to Oh and one more thing

2:30:06about this one million scenario, we would still need to we

2:30:13would still need to continue a higher trend might not

2:30:16be at the 9 million level it might not the $8 million level,

2:30:21but it would not be much of a reduction

2:30:23we would still need to continue to move

2:30:25that forward because we would not at the end of this year,

2:30:29we still would not have enough of a fund balance

2:30:32to be able to cover that cash flow.

2:30:35So then the next scenario would propose a $2 million

2:30:40reduction as seen in this line here with this scenario

2:30:45reserve policy goals are met right away.

2:30:48You can see that this would allow

2:30:50to create a surplus of about one sixty nine thousand dollars

2:30:55with the additional relief money that would be coming in adding

2:30:59to the fund the last match the next I'm

2:31:03sorry the previous fiscal year on balance

2:31:06gets us to a ten point 9% general fund goal

2:31:11at the end of the fiscal year 2010 to this

2:31:15obviously would allow us as well if you can see this bottom line

2:31:20here, even with these increases as we've

2:31:23assumed the same increases as the previous two scenarios.

2:31:27This does allow us to maintain near either at or near

2:31:31our minimum goal, which that is the reliance that we're looking

2:31:37for that is the fiscal health target that we're looking

2:31:41for is to make sure that we're maintain

2:31:44meaning our fund balance.

2:31:45But the reductions would only just

2:31:47be enough to meet that minimum.

2:31:49So in order to offset any additional increases in

2:31:52expenditures that might happen.

2:31:54We would have to either look to additional revenues

2:31:56and we would have to include some of those revenues

2:31:59or we would have to make further reductions in order to increase

2:32:04this beyond salary increases beyond essentially

2:32:09the minimum fund balance goal.

2:32:12$2 million.

2:32:13Again $1 million.

2:32:14We can we believe that we can achieve with a lot of pencil

2:32:19sharpening but $2 million as the council discussed

2:32:22during the midyear discussion that additional $1

2:32:26million conversation would need to be had.

2:32:29And we'll get into that in just a little bit

2:32:34as far as what that could look like.

2:32:36And with the priorities of the council are.

2:32:38But this is the harder discussion

2:32:40that we would have to have.

2:32:41But this is what it would achieve

2:32:43if we are able to do that.

2:32:45So mark yes and Kellen Could I just jump back

2:32:50to the council bucket for this.

2:32:53I think it's a bigger slide and I could shift.

2:32:59You should let me share this.

2:33:01I had it up in.

2:33:03I'm just going to share with counsel Patrick

2:33:06screen from the Council Patrick, for that Can

2:33:09you see this is it yet.

2:33:12Okay so I've just loaded up.

2:33:14So you can have a better view of things that's

2:33:18gone I've been pointing out.

2:33:20He's the $2 million reduction job

2:33:23that you have in your package.

2:33:26And the extreme right column here

2:33:29presents the assumptions assumptions that

2:33:31underlie each of these roles.

2:33:33And I just want to draw your attention a couple of things

2:33:38here.

2:33:38The proposed budget plan money forecast is 41 point $3 million

2:33:43in terms of revenues.

2:33:44And if you look back over the preceding few years.

2:33:48And these what we've done with previous Long-Term

2:33:51financial forecasts.

2:33:52We always present three or four years from the past

2:33:55plus the current plus the proposed upcoming budget

2:33:58the plus the five years ahead typically,

2:34:01that's in keeping the GFC guidelines low incomes

2:34:04to financial forecasting.

2:34:05So looking back, you'll notice that the 40 one point three

2:34:09that we project is the same almost the same number as bond

2:34:14back in 1819 so that begs the question has the recovery

2:34:18coming at all right.

2:34:20Because 40 one point three was back in 1890

2:34:23and we were impacted in nineteen twenty

2:34:25so therefore, it's 40 twenty two.

2:34:28And then the full impact was felt in 2021

2:34:30and that's why we have 38 million in revenues.

2:34:33And here's the question, which is for training you on 22 What

2:34:37is your assumption support that Mitch is Obie back in the game,

2:34:40or is it back 18, 19, and we've taken

2:34:43a conservative view of things here as Graham pointed out.

2:34:47And we have not expanded the 25% of revenue

2:34:50that is within our purview to expand in more than 2%.

2:34:54Everything else has been presented by HD

2:34:57soft the revenue package 70% is going by models set up by HDL

2:35:0230% by charges for services form costs

2:35:05recovered France was in soon.

2:35:07So be present.

2:35:09We preserved a conservative estimate on that.

2:35:12I just want to point that out to you here.

2:35:16And then moving down to the bottom of this slide

2:35:19again, as campaign out with a 2 million

2:35:22reduction it's a time reduction, it needs to be

2:35:26a permanent budgetary action.

2:35:27And then that happens, the immediately ten point 9%

2:35:31policy goal for fund balance but more importantly, I

2:35:35think you'll buy recognize that we

2:35:37continue to draw down on the trend the trend currently is 8.

2:35:42And a half million.

2:35:43I make just I just take a slight Pat detail at this point

2:35:48because information I've been presented to the Moyne publicly

2:35:52that the trend for the last fiscal

2:35:54has got to cost the city to hide seventy two thousand beaches

2:35:57inaccurate forecast.

2:35:59Did that analysis fail to do a complete analysis recognize

2:36:04that we issued a trend to a public offering

2:36:07and for the shoot at a premium of a sixty thousand dollars

2:36:10that helps us defray part of that cost and no

2:36:13do when we get the train.

2:36:16We start putting money aside in January

2:36:18it made starts immediately starts earning interest for us

2:36:21in late and then leave interest was not factored in to offset

2:36:25the cost of the travel.

2:36:27So you sense the trend for 21 was almost at 0 cost

2:36:31to the city.

2:36:32But the information that was presented was somewhat slanted

2:36:34and we just want to make that point out,

2:36:37in fact, I am inclined to ask folks still

2:36:40pages to review the trend trends action

2:36:42and to certify that the Crown did not cost us

2:36:44a penny for this fiscal year.

2:36:46But that's a side point.

2:36:47So that being said, you still can to meet a trend of about $4

2:36:51million because the trend plus the fund balance

2:36:53needs to even out to about approximate 8 million.

2:36:56That's the math.

2:36:57So 8 million is what we need to make albeit through 9

2:37:00but which the lowest point in our cash flow

2:37:03And if you have a fund balance of 4 million,

2:37:06then the remaining needs to come from.

2:37:08So that's the tracking number that you see here,

2:37:10which is horizontal $4 million for the next foreseeable future

2:37:14again, like I point it out to you.

2:37:18Pension costs and staffing costs 75% they go up to about 80%

2:37:22and off this amount 20% is pension costs

2:37:25so you looking back into 17, 18 the total wages and salaries

2:37:30and benefit is only 75%.

2:37:32And the pension cost is 14% for a total

2:37:35of 60 61% plus the staffing costs,

2:37:39you'll notice that the 61% has now declined at the end

2:37:44his five year freeze to about because you're pension costs

2:37:48is 21%, and 80 80%.

2:37:50So 80% Mr anyone is 59.

2:37:52That's your staffing costs.

2:37:54Whereas back here it was more than 61%

2:37:56it was about whatever So just as I pointed it up.

2:38:01And then on the other issues that we might have

2:38:04within the city expenditures as a percentage

2:38:06of operating costs.

2:38:08And we are constrain by policy to have no less than 5%

2:38:11and you'll notice that the number is well below 5% it's

2:38:143% most the time and dropping down to 2%

2:38:16and that's all of the debt obligations

2:38:18that we have to make.

2:38:20And payments that we need to make as time progresses.

2:38:23So these are little points that I might mention in passing you

2:38:26in the fact that this is put to the most viable option for us

2:38:30in this five year forecast, which that $2 million

2:38:34one time reduction permanent reductions keeping in mind

2:38:37that we have we anticipated four point eight

2:38:41million federal relief package that

2:38:43should come obvious starting this year

2:38:45and into next as well.

2:38:47And with that, I will hand this back to counter and again jump

2:38:51back to how i have stuff Shannon Now

2:39:15the hard part talking about how we get.

2:39:22So these slides you seen before.

2:39:25I'm not going to go over them in great detail

2:39:28because you've seen them many times before,

2:39:30but this is just one more reminder

2:39:32of what we have done so far.

2:39:34So that you're aware of what we've done so

2:39:37far because we have done a lot.

2:39:40This is the cost savings that was implemented

2:39:42for this fiscal year, both ongoing and time savings These

2:39:47are the reductions for personnel as far as not only

2:39:51the reductions from departments of the one point $6 million

2:39:56that was directed last during the lab.

2:39:59This during this time last year, the Council

2:40:01directed us to cut $2 million.

2:40:03So this one point 6 is part of that $2 million dollars.

2:40:08Again These are all personnel related where it impacted

2:40:12management confidential every single bargaining unit deferred

2:40:16their COLAs last year and Additionally

2:40:18the non-public safety staff took furloughs

2:40:22for the entire fiscal year.

2:40:26This is by department.

2:40:28So this is not inclusive of the fiscal response plan that

2:40:31was adopted over the summer.

2:40:33This is what that one point $6 million

2:40:36consists of by department.

2:40:38You can see each of the department's control

2:40:40what their contribution was to that one point

2:40:43$6 million reduction again, this was

2:40:46the first pre pandemic off the bat one point $6 million

2:40:50reduction in staffing and services

2:40:55This is the fiscal response plan that

2:40:57was adopted by the City Council and implemented

2:41:00within the fiscal year budget.

2:41:02This fiscal year budget.

2:41:03The one point five million.

2:41:06These were all personnel and contract reductions

2:41:10including layoffs and elimination of five positions

2:41:18this goes by.

2:41:20This is a depiction of how each of the bargaining units to date

2:41:24have been reduced or what they have agreed to as you can see,

2:41:30every single bargaining unit did agree to at least

2:41:33a further cola or in the case of management

2:41:36confidential myself defer to cola or didn't get a cola

2:41:40and are not planning on doing that next fiscal year as well.

2:41:43But this is what we have to date as you also

2:41:47know the police Employee Association agreed to further

2:41:49their COLAs twice and SEIU and the management group were also

2:41:54and myself were subject to furloughs

2:41:57and again, these are this is another review

2:42:01of the assumptions in everything that

2:42:03kind of is all put together.

2:42:05As you know because of COVID 19, a lot of the expenses

2:42:09and reductions in revenue from things like personnel i'm

2:42:12sorry recreation including programs Senior Services

2:42:15programs and a reduction in other aquatics and child care

2:42:19and camps and all of those things

2:42:22we've assumed that through the end of this fiscal year.

2:42:26But that is because we have to that is purely based

2:42:30on what we're restricted to per cockpit because per the county

2:42:34health order because of Cobain again,

2:42:37we eliminated three full time positions in two part time

2:42:40positions in city management and recreation

2:42:42that was effective as of January 1 of this year,

2:42:45we reduce fire type overtime in the fire department

2:42:48by filling three vacant positions we've restructured

2:42:51police department operations.

2:42:52This continues to be ongoing this will be continued to go

2:42:55through into next fiscal year.

2:42:57But at this point, we have reduced one staff

2:43:01to thirty seven officers and the Special Operations Division

2:43:04and there will be more restructuring that will happen

2:43:07within next year's budget, which is part of that,

2:43:11which again, is part of the pencil sharpening

2:43:14that I referred to on.

2:43:16There are additional vacant positions

2:43:18that happened within the last couple of months,

2:43:21including three full time positions

2:43:23city management and recreation those

2:43:25were effective as of February.

2:43:28Again we've already shared that the police Employees

2:43:31Association revised their view and deferred

2:43:34their call that was due to them in January July.

2:43:37And when I say deferred I want to make sure that you

2:43:40understand that that means it was it

2:43:41was delayed they will not get it back.

2:43:44It is it was pushed to July.

2:43:46Again We've canceled our major events Earth Day July 4th

2:43:49and there's been various other expense reductions

2:43:52things like training that we haven't that we would normally

2:43:55budget for that, we just haven't been

2:43:58able to do because of COVID no one's traveling

2:44:01no one's doing a lot of other anything other

2:44:04than online training.

2:44:05So training costs have significantly

2:44:07been reduced that's just us that is just one example.

2:44:11So again, this is kind of a review of all of the things

2:44:15we have done to date.

2:44:17Now, the hard part begins and this conversation

2:44:19that we can start tonight to discuss things like priorities

2:44:23and what is on the table.

2:44:25But more importantly, what comes off the table is now

2:44:28the hard part of the discussion that we're not

2:44:31going to resolve this tonight obviously,

2:44:33there's gonna be next steps.

2:44:35But I just want to point out that this is where we are.

2:44:39So these and this is also our review of the reduction options

2:44:43that we have previously discussed that were not acted

2:44:46on by the city council and I just

2:44:49want to share that I am aware that we have such an engaged

2:44:53and passionate community.

2:44:54And that's one of the reasons why I love living here.

2:44:58And I love being a part of it ever single thing that's on

2:45:03said table has a passionate enthusiastic and big group

2:45:06of advocates that will absolutely

2:45:09want to make sure that they are preserved

2:45:12all of these services.

2:45:14So these are incredibly hard decisions

2:45:16because every single one every single

2:45:18option in addition to all of these has a constituent seat.

2:45:21So I just want to share that I recognize that.

2:45:25And I understand that.

2:45:26And as the council has said, there's

2:45:28if everything is on the table The question is, what

2:45:31do we take off the table first.

2:45:34So I just kind want to set that stage.

2:45:36But these are the options that we have discussed either

2:45:39through the fiscal response plan or that we brought

2:45:42during the requests from the council

2:45:43to take a look what a million dollars

2:45:46in reductions this fiscal year would look like.

2:45:48There are other options.

2:45:50But I just wanted to review that these were the things that were

2:45:54talked about on outsourcing services that could include

2:45:57anything from custodial to other city hall services, finance

2:46:02anything from building and planning

2:46:04or any sort of financial service any services within city Hall

2:46:08could consider being outsourced.

2:46:10And I think as Jan council member Wilson had pointed out

2:46:14in the previously, these are the none of these options are also

2:46:18a quick panacea either these would take time and effort

2:46:21to be able to implement and meeting conferring with all

2:46:23of the bargaining units.

2:46:24But again, these are just options

2:46:26that have been discussed in the past that could be discussed

2:46:29in the future outsourcing any sort of services the reducing

2:46:34the city subsidy for library hours has been discussed

2:46:38reducing recreation programs or at least eliminating subsidies

2:46:41for recreation programs again, was this one of this

2:46:44is one of the things that was brought up

2:46:46in the state auditor's report perhaps

2:46:48we're not charging enough base.

2:46:50They have seemed to indicate that they

2:46:52would want us to seek a higher level of cost recovery.

2:46:56So that we are not completely subsidizing some

2:46:59of these programs that can be considered decreasing Fire

2:47:02Department response services, whether it's decreasing

2:47:05services browning outstation closing a station

2:47:08those things have been discussed.

2:47:11Same is true for police department Response

2:47:15and Services reducing those perhaps reducing officers

2:47:19reducing services within that realm decreasing maintenance

2:47:22citywide again, this would be we we'd try to provide

2:47:27a really high level of service.

2:47:29And we want to make sure that we're everything from our parks

2:47:32and our curbs in our streets.

2:47:34We have a lot of special funding for that.

2:47:36But anything in the general fund could be cut and finally,

2:47:40just to point out that reducing staff equals reducing programs.

2:47:45People equal services services equal people.

2:47:48So any reduction in staff especially

2:47:51now, because with the layoffs that we have already

2:47:55implemented and the resignations and retirement that we have not

2:47:59backfilled right now we're down at least 14 people

2:48:04and that is a significant amount when it comes

2:48:07to a small town like ours.

2:48:09So at this point, if at any point

2:48:12the someone leaves the service, the service has to either go

2:48:16spread around or go away.

2:48:19And so because we're now down to an even more reduced.

2:48:22I just want to make sure that everybody knows that if you

2:48:25layoff a person if you reduce the person

2:48:27you are reducing the service that is attached to that person

2:48:31because people provide the services.

2:48:33Finally.

2:48:34Again all of these services and anything else that

2:48:37could be considered as an option or by the Council

2:48:41or brought up by the public regardless

2:48:44of what that is all of these options

2:48:46come with major impacts.

2:48:47One of the examples used was the fire department

2:48:50if we were to reduce a fire station Brown out

2:48:53of fire station or reduce services

2:48:54in any way that absolutely impacts

2:48:57our contract with Kensington.

2:48:59And so that would be a significant analysis

2:49:02that we would need to do in order to if this were something

2:49:06that was indeed on the table.

2:49:08We would have to do a very thorough analysis of what that

2:49:12would mean to the rest of what that contract would entail

2:49:15as well as the revenues that go with that contract.

2:49:18Same is true for recreation if you reduce if you reduce

2:49:22services you're going to reduce the revenues that recreation

2:49:26provide recreation brings in from providing those services.

2:49:30So these are, again, options that have been discussed

2:49:33additional options couldn't continue to be discussed

2:49:36and will have to be discussed.

2:49:38But I just wanted to kind of go over what has been what

2:49:42has been talked about previously though at this point

2:49:45This is the end of my presentation.

2:49:47And I'll just leave this.

2:49:49I can leave the slide up or I can

2:49:52we can go back and discuss anything further

2:49:544 city council questions.

2:49:55But one of the things that the staff really does

2:49:58want to make sure that the council

2:50:00provides us direction on.

2:50:01If you if you would be so inclined

2:50:03would be that we and you see there are strategic goals,

2:50:09which which which still are still in place and goal

2:50:14be achieving long term financial sustainability

2:50:17has pretty much been staff's number one priority.

2:50:20This entire past at least certainly,

2:50:23it seems like my entire tenure as city manager at this point.

2:50:28But considering now that we have the opportunity.

2:50:31It's not the federal relief is not a panacea.

2:50:34However it does allow us to get closer to our minimum fund

2:50:38balance goal.

2:50:39And so we believe that offering a priority of at least gaining

2:50:44our minimum fund balance goal per our policies

2:50:47that we are indeed following our policy

2:50:49is something that we need to have as a top of mind priority.

2:50:52There are other community priorities

2:50:53that we also want to discuss and this is why we will be having

2:50:57a community meeting in April and we're

2:50:59still working on that date.

2:51:01But it should be as if we're looking at for it

2:51:04to be one of the Saturdays in April.

2:51:07So it's a different time council meeting and not late at night.

2:51:12But the strategic goals again, are in place right now.

2:51:15We had intended to try to update our strategic plan.

2:51:19We would still like to be able to do that if possible.

2:51:22But again, we're trying to make sure that we're balancing

2:51:25out our time, our resources.

2:51:26And whether or not we're able to afford to be able to do that.

2:51:31And then again equity is a huge community goal that not only

2:51:34has been brought up to fight.

2:51:36But it has been certainly something

2:51:38that has been top of mind particular since last year

2:51:41with the murder of George Floyd and all of the various Capone

2:51:45that we have been able to see as far as racial justice,

2:51:50social justice and equity considerations

2:51:52that we do want to incorporate within our budget

2:51:55and within all of the things that we do.

2:51:57That is something that we absolutely

2:51:59need to consider as a community priority however we do

2:52:03want to make sure that with all of our strategic

2:52:05that we're not only concerned that money is not a goal equity

2:52:09is not a goal equity is a value equity, and inclusion.

2:52:12And diversity are values that underpin everything we do.

2:52:15But we do want to acknowledge and make sure that is front

2:52:19of mind as a priority balanced with the what

2:52:21all of the community priorities have to be done

2:52:24in the next steps would be, again,

2:52:26we would like to hold a community

2:52:28meeting we would hopefully be able to answer

2:52:30questions of the public.

2:52:32I'm sure Christian but the public

2:52:34do have a lot of questions that we can answer as

2:52:37far as our status, but also try to determine

2:52:40some of the priorities that the community is looking at.

2:52:43The financial advisory board, of course,

2:52:45is our partner in all of this.

2:52:47We want their next meeting.

2:52:49I believe is April 13 right.

2:52:51Mark did I get that right.

2:52:53They will be I know they were slated to discuss

2:52:55the state auditor's report.

2:52:57But they'll also be discussing their work plan.

2:53:00They have already.

2:53:01They will be reviewing the iteration of this.

2:53:04And as per their they're enacting legislation

2:53:07they will review the budgets.

2:53:08They will make recommendations to the city council on things

2:53:11like the budget and including any updates to the Financial

2:53:15Policy we would like to come back to have another budget

2:53:18study session following these.

2:53:20These are the community meeting.

2:53:21And the FAB meeting at your second April meeting and then

2:53:25any additional special meetings that are required or requested

2:53:27of the city council to be able to continue

2:53:30further this discussion of fiscal recovery plan.

2:53:33This was something that the state auditor noted that they

2:53:37would like to see from us.

2:53:39And it would be a bit beyond the fiscal response

2:53:42plan, which was what we had included in this year's budget.

2:53:46This would be more of a sustainability plan.

2:53:48This would be more of a long bit of a long term accountability

2:53:52plan that we would develop that I think

2:53:54that the fiscal response plan all

2:53:56of these forecasts that we've been doing

2:53:57are good basis for that.

2:53:59But This is something we will need

2:54:00to be developing over time.

2:54:01And we will need to provide to the state auditor

2:54:04and we do want to make sure that we are engaging

2:54:07the council and the public as we move

2:54:10forward on that recommendation.

2:54:12And then finally budget hearings, which

2:54:14we expect to begin in May.

2:54:16We will be bringing to you not only some of the draft

2:54:20budget items that we have.

2:54:22But we also will be hearing from all of the departments who will

2:54:25make presentations to the city council for their own budgets

2:54:27and then you are able to ask questions each department head.

2:54:30And so we will be doing that beginning in may

2:54:33and having budget hearings until the budget is passed

2:54:35no later than the end of June.

2:54:38But again, we are prepared to be able to hold special meetings

2:54:41if the council desires to be able to have

2:54:44these conversations.

2:54:45So at this point, this is meant to be a discussion.

2:54:48Ask any questions of staff.

2:54:50And we also have department heads on the call,

2:54:53if you would like to ask questions

2:54:55of some of the department heads as well.

2:54:58But at this point, we're looking for any direction

2:55:01at the City Council has based on this presentation.

2:55:04And certainly.

2:55:06Again for me, the biggest priority

2:55:08would be to to have you confirm that we are seeking to make

2:55:12sure that we're meeting our minimum fund balance

2:55:14goal as soon as possible.

2:55:15And with that.

2:55:16Mark, I don't know if you have anything else to add.

2:55:23So with that, I can stop sharing my screen on

2:55:26or if the council has any specific questions

2:55:29on any of the slides.

2:55:30I'm happy to go back to the slides Questions

2:55:35from council members Mayor Pro Tem Cato could we minimize.

2:55:40Pardon me Mayor could be minimized.

2:55:43The discreet say we can't see everyone.

2:55:46And I don't think that the public can see it as well.

2:55:50You I mean, I can stop sharing the screen.

2:55:53I just wanted to make sure if anyone wanted to go back.

2:55:57We can go back mayor.

2:55:58Greenbelt Sorry about Rico's presentation

2:56:11thank you and thank you.

2:56:13And I want to make sure that residents

2:56:17know how dire the situation is.

2:56:20And we are.

2:56:21We are here to follow the suggestions

2:56:25and we're doing many of that already,

2:56:28but I want people to know that since we have

2:56:32since the last recession when the main when

2:56:36the majority of cities were doing

2:56:38what we should have done back then

2:56:41they're so much ahead of us.

2:56:45And and this is something that i want to make sure

2:56:50everyone realizes we're still dealing with big government.

2:56:54We're still dealing with huge, huge,

2:56:58huge budgets that small cities like El Serino cannot afford

2:57:03to do period where seven $2 million that we have to think

2:57:08of how we're Davis with calipers and unfunded

2:57:11liabilities every year.

2:57:13And and we don't have a solution for that.

2:57:16So I truly do believe that we need

2:57:20to For the record left everyone know that this federal stimulus

2:57:28money at that.

2:57:30We are going to receive and to payments must

2:57:35go to reserves and reserves only with and on that

2:57:40gets my turn to Karen and to mark will

2:57:45that work for our management.

2:57:48With that work for you.

2:57:51We want to make sure that we are negative BBB rating,

2:57:56which is basically junk.

2:57:58Status we need to improve between now

2:58:01and the month of June.

2:58:04And in my opinion, in order to do that,

2:58:07we need to show that we mean business in cutting costs.

2:58:11So I want to make sure that that i'm I am I wrong at this

2:58:18can't we up our credit rating.

2:58:21So we can get a better trend rate.

2:58:25Is that possible.

2:58:26Well I can let speak to if he has any opinions

2:58:31on the bond rating.

2:58:33But again, I certainly, I think it's

2:58:36a very good priority to make sure that we

2:58:39are bolstering our reserves.

2:58:41I clearly i mean, that's kind of the theme I'm using here.

2:58:45But what we just have to make sure that we're doing

2:58:48is that we're sort of fighting for the federal relief money

2:58:51that we're certifying that it's being appropriately.

2:58:54It's appropriated correctly.

2:58:55And so we need to make sure that we're resolving

2:58:59any potential issues with the Fed

2:59:01as far as that is concerned, I will

2:59:04say this the federal relief money is a one time payment

2:59:07And as you all know, it's a best practice

2:59:10and a good financial practice that we don't want to spend.

2:59:13You never want to spend a one time windfall

2:59:16payment on an ongoing cost.

2:59:17So that that is a clear direction that I agree with.

2:59:23And we believe that because revenues

2:59:26were we had much lower revenues than did because of the COVID

2:59:31pandemic that these can replace lost revenues

2:59:34that part is clear in the bill.

2:59:36We just want to make sure that we're certifying it correctly.

2:59:40But I agree.

2:59:41I believe that bolstering our General Fund Reserve

2:59:43needs to be our very first priority that will certainly

2:59:46improve our bond rating.

2:59:48And I don't know if you have any thoughts on how I got my mail.

2:59:52Right.

2:59:52That's the opinion, that should be our main prior already.

2:59:56Shall we make a motion on that to make sure

3:00:00that we are united in making sure that that stimulus

3:00:05package goes to the reserves.

3:00:07That we have depleted since 2012 looking at that report.

3:00:12A lot of these programs that previous leadership

3:00:15put we never had any money to begin to set these.

3:00:20So get And we just kicked the bucket kick

3:00:23the can for the last 10 years.

3:00:25We can no longer do this that if we continue to do this,

3:00:29we're going to use the B word.

3:00:31And I don't want to use that word.

3:00:33So I mean business is about making

3:00:35these fundamental changes and for now on good government

3:00:41and good government is always looking at the budget

3:00:44and make sure we have reserves if we

3:00:46can't afford these programs.

3:00:48We are not going to have it or relevance

3:00:51is the time for questions.

3:00:53So my question again, is I like to make motion time for that.

3:00:58I don't think that any if I may Mayor Pro Tem that might

3:01:03be a little premature in favor.

3:01:04I don't want I don't want the council

3:01:06to have to take action if we don't have the specifics yet

3:01:09from the Treasury.

3:01:11So once we receive that clarity then

3:01:13I would love a motion at this point,

3:01:17I think that the direction is clear.

3:01:20Can we actually implement that Well, I

3:01:22think that we'll just need to we'll

3:01:24have to bring that back to you.

3:01:27OK.

3:01:27And let's try to from the public tonight to OK.

3:01:30I'm sorry Mayor Pro Tem Are you still in other areas.

3:01:34Yes I wanted to give an answer from both you

3:01:38that's 72 million calipers.

3:01:41What's the solution.

3:01:44How are we going to get out of this mess.

3:01:46Well you know it to some degree we.

3:01:51That that is an expense that we are required to pay.

3:01:56We are not able to not pay the pension bill.

3:02:01We are not able to take the pension benefits away

3:02:04from our employees.

3:02:05That is not legal.

3:02:07So I just we have to pay this bill.

3:02:10It's a matter of how we pay the bill

3:02:13and how we're able to offset our liabilities.

3:02:15That is what we.

3:02:17That is what we have to be able to take a look.

3:02:20We believe.

3:02:21And then feel afraid to jump in our art at this point.

3:02:25We have been doing a pay as you go system.

3:02:28It is a paid on a monthly basis.

3:02:30There are several things that we can

3:02:31discuss including perhaps increase

3:02:33employee contributions.

3:02:35Again some of that would have to be negotiated

3:02:38with the bargaining units.

3:02:39But that is an option.

3:02:41For example, our public safety folks are already paying

3:02:44a higher cost their pension.

3:02:45I am paying a higher cost of my pension

3:02:48and last year you implemented a 1% increase for management

3:02:51and confidential.

3:02:52So there's some different things we can do there.

3:02:56And again, once we've achieved an appropriate fund balance

3:02:59then we or again, this is the city council can direct us

3:03:04to look into Section 115 trust.

3:03:06As you heard less THE LAST TIME from ANY Jay

3:03:09we want to make sure that we're financially stable.

3:03:12So that would be a fun balance first,

3:03:14and then that is something we can consider.

3:03:17But but again, those are options for payment.

3:03:20But as far as we're not going to be

3:03:23able to end that liability unless we're

3:03:25laying off all of those people.

3:03:27So there is i don't know if you have anything to add on that.

3:03:32I would just regard the respects to Mayor Pro Tem Crandall.

3:03:35I was hoping that before the rhetorical question

3:03:38would the fact of the matter is I'm totally with him.

3:03:41I totally understand where he's coming from on this.

3:03:44He's always been advocating for things to be sent

3:03:47straight to the bottom line.

3:03:48Putting these time Palin's Fidelity

3:03:49money belongs to the city and no one can touch it.

3:03:53No one can take it.

3:03:54It's been signed, sealed.

3:03:56It's it's waiting to be delivered.

3:03:58We know that the state can prevent us from having it.

3:04:00And absolutely no one can prevent us from getting that.

3:04:03And we lost revenues about $2 million

3:04:05in the last couple of years that the law accounts

3:04:07for Carlos the 40 four point eight that the Government has

3:04:11awarded.

3:04:11So bad.

3:04:12I'm no fear of losing any of that.

3:04:15It's just that we need those kind pointed out

3:04:18that needs to be certified and once we

3:04:21certified we get the money.

3:04:22And we've lost 2 million in the previous year.

3:04:24And let's have maybe a couple of million in this year as well.

3:04:26That's four million out of the four

3:04:28point eight right off the top.

3:04:29So that it goes straight to the bottom line.

3:04:31But again, I was kidding when I said

3:04:33I was hoping you do the rhetorical question

3:04:35because I really don't have an answer to that question.

3:04:38Council member Ken Baker thank at present.

3:04:41Council member Rodney before you ask a question on this point.

3:04:44Do we know for certain that the discount

3:04:46rate is going down to seven.

3:04:49I thought that was, we don't know yet.

3:04:53Isn't that still up 7 there is a good chance to go down to seven

3:05:00But it hasn't happened yet it happened.

3:05:03We haven't got the July information you better

3:05:05come through in July if at all.

3:05:08So we'll know it at that point.

3:05:11Again after presentation last council meeting

3:05:14there was some this brief discussion the chances have

3:05:17been dropping even further than six point seven

3:05:20but if you put in six point seven right.

3:05:23We put in six point seven Is that it.

3:05:27OK All right.

3:05:29Council member Rodney gee Mr Mayor

3:05:32I'm very struck by this presentation, I must say.

3:05:37So as local government this is up for the people,

3:05:42by the people kind thing.

3:05:44And I feel that the presentation while it.

3:05:48I'm not disagreeing with with the strategy

3:05:51of how it is we're doing this.

3:05:55What I am very struck by is the inability

3:05:59to really make create clarity and digesting what is pretty

3:06:04complex stuff into something that's

3:06:07digestible for the public to understand.

3:06:10I really think that we need to be doing a better job of this.

3:06:13That's My overall thought.

3:06:14But I have to have some questions

3:06:16so the cost of public issuance for the Tran

3:06:20is listed as one twenty.

3:06:23Can you explain that a little.

3:06:26So we employ a firm or financial advisors in awarding

3:06:32the Tran and the financial advice

3:06:35is the fees associated with that exercise

3:06:38charges approximately twenty five thousand dollars.

3:06:41The rest of it goes towards the actual cost of Kranish

3:06:44wins the legal firm that takes care of the Tran documentation

3:06:49the underwriting firm that does the underwriting of the train.

3:06:51As you know the Tran this year was underwritten by a firm

3:06:55that we've used over the last six years.

3:06:58So they get to share the full fee

3:07:00as opposed to previous about the Krampus place

3:07:02could just one bank.

3:07:03So that was not.

3:07:05No chance of meeting have anything to underwrite on that.

3:07:08So the risk was less at the moment you go public,

3:07:12the is substantial risk that the underwriter has to take

3:07:15and that accordingly increases that fee for underwriting that.

3:07:18So these are the basic component that under twenty thousand

3:07:20dollars into the members of the public

3:07:23you don't know what a Tran loan is.

3:07:24It's essentially as director sire explained it

3:07:27once it's like a credit card.

3:07:29So we have been utilizing a credit card without having

3:07:33any reserves savings.

3:07:35You said in the presentation that it's

3:07:37cost us hardly anything.

3:07:39How much has it actually cost us.

3:07:42So I was alluding to the report by the state.

3:07:45This morning that specific reference to the trend

3:07:48we're currently having.

3:07:49And I pointed out that the cost of the crash was two seventy

3:07:53two thousand dollars and I was you that the Qur'an was

3:07:57issued at a premium.

3:07:58So what does that mean.

3:08:00It means that we asked the public offering for an 8

3:08:04and a half million trend and they actually

3:08:06gave us eight eight point 6, 5 million, which is 160 thousand

3:08:11more above and beyond the amount that we had requested.

3:08:14So what happens with the time in sixty thousand.

3:08:17Use that sixty thousand prepared part of it.

3:08:20Two seventy two thousand cost down because they

3:08:22gave us upfront so that lowers that cost

3:08:25by that substantial amount.

3:08:26Number two.

3:08:27Like I said we set aside money starting

3:08:30in January to fill for fulfill the plan by the end of June.

3:08:34And those moneys are set aside in leaf and the funds.

3:08:37If you didn't have and we wouldn't earn that interest

3:08:40rate to take that interest earning as part of the benefit

3:08:44of having the train your difference your 260 thousand

3:08:47drops down even further.

3:08:49And that's how we end up with a yield

3:08:52off point eighty 5% as disclosed in the air for us.

3:08:56So below the coupon rate trannies 3% to just 3%

3:08:58of 8 and 1/2 million is about one in twenty two thousand

3:09:02you have one sixty thousand that you

3:09:03got up front, which lowers that you earn some money too late.

3:09:07Which loans that even further.

3:09:09So the net cost of the trade is substantial

3:09:11lower than what it was presented in the report that

3:09:14was published this morning.

3:09:15So I just wanted to point that out to you

3:09:18because the folks that did that analysis we put together

3:09:21failed to recognize the importance premium.

3:09:23Then you go public with the tram issuance.

3:09:26So I'm hearing you say that we don't

3:09:28have a number for how much the trend actually costs in this.

3:09:32So it would cost us net 70 thousand dollars and that's

3:09:39so extra line seventy two thousand lets the headline

3:09:42sixty thousand less the eighty thousand

3:09:44that earning interest from leave leaves you with a net of about

3:09:48twenty two thousand in also.

3:09:51So you did bring up fiscal year 18, 19 as being a pretty

3:09:57drastic year for or history.

3:09:59I want remind folks in the public

3:10:01that twenty seventeen was the centennial year for el Serino

3:10:05and I moved tells three Serino about five years ago,

3:10:08I was really excited to attend this the centennial event

3:10:11in three of us park.

3:10:13I was so excited there was free lunch that there was free lunch

3:10:17that was provided to a certain amount of the attendees

3:10:21were there.

3:10:22And I just like now that I'm in this seat.

3:10:26I cannot believe the just it's aggravating to me in a way that

3:10:30it's hard to articulate into words that This is the practice

3:10:33that has been done.

3:10:35And again, I believe we are going in the right direction.

3:10:38I'm going to make sure that we're in the right direction

3:10:41but we have to have ownership and accountability

3:10:44of the mistakes that have been made

3:10:45in the past in order for us to move beyond

3:10:48and to get in a better place.

3:10:50The other thing I do want to bring it back to the audit

3:10:54because that is headline news for today.

3:10:57So for are one of the recommendations

3:11:00that was in the audit was to budget based on department.

3:11:05Are we looking to do that or would

3:11:08that impact our recommendation for budget

3:11:10reductions for next fiscal we.

3:11:13We will.

3:11:14We would like to talk that through with the Fab

3:11:19again, because our comprehensive financial policy is

3:11:23at this point dictates that we do we budget by that budget

3:11:28by fund.

3:11:29And I also reference that in my response

3:11:32in the comprehensive financial policies

3:11:34we follow policy as we currently follow that policy

3:11:37and that we budget by fund.

3:11:39We would like to talk that over with the Fab

3:11:42because, again, they are the ones

3:11:44who review the comprehend financial policy.

3:11:46And so if that is something that they would recommend

3:11:49and it is feasible for all of us to be able to implement it,

3:11:53then that is what we will bring to the city council,

3:11:56the Fed can recommend it to the city council.

3:11:58But that is something that we're absolutely looking at.

3:12:01Yes i definitely want to make sure that we're activating as

3:12:05much as the audit recommendations

3:12:06as possible as we are going through this process.

3:12:10I would like to ask of Fab if they could review

3:12:16a comprehensive financial policy, especially when it

3:12:20comes to reserves if there's a way that it can be modified

3:12:25or beefed up and increased.

3:12:27So that we can have a better sense, especially as council

3:12:31because we do look fab for their counsel and guidance

3:12:35whatever it is that we can do in order to really elevate this

3:12:40because I'm very disappointed that if yes

3:12:43we're being painted a rosy picture.

3:12:45But I can't believe it until I see is really how it feels.