Special Joint City Council / Financial Advisory Board Meeting May 24, 2022

0:00:07Councilmember Abelson: The one I would usually go to tonight.

0:00:12FAB Member Ktsanes: There isn't a democratic club meeting at the same time.

0:00:15Councilmember Fadelli: that's the other meeting okay.

0:00:19FAB Member Ktsanes: there's also warriors basketball game.

0:00:20Yes.

0:00:22Councilmember Abelson: Thinking of him, but what of what's important.

0:00:27Councilmember Fadelli: And there's.

0:00:28Councilmember Abelson: Some there is it over.

0:00:30FAB Member Ktsanes: McCoy is heading in that direction in a good way.

0:00:34that's good.

0:00:41Councilmember Abelson: What time to start.

0:00:43Six Oh, that is a conflict.

0:00:48Mayor Pro Tem Motoyama (she/her): I hope that doesn't depress our viewership and see me.

0:00:52FAB Member Ktsanes: It might.

0:00:54be there.

0:00:55wrap it up game.

0:00:57Councilmember Rudnick (she/her): It being we're being recorded.

0:01:01FAB Member Ktsanes: truthful.

0:01:13Councilmember Abelson: there's 14 people with us.

0:02:10Is Karen gonna be with us tonight.

0:02:15she's.

0:02:15A Member able sin we're waiting on a couple of our FAB members.

0:02:19and several of our staff is.

0:02:20Councilmember Abelson: I need to talk to Karen about something offline after issue with this right now.

0:02:27he's not joining the call yet, but he will be up shortly.

0:02:29Councilmember Abelson: Okay, so if I could.

0:02:34Somehow connect some at some point.

0:05:25Here i'm just waiting for the tourney to get on it looks like he might have lost his connection, but we do have a quorum of both Council and FAB Members on the call.

0:05:34Mayor Quinto: Okay, thank you.

0:05:44All bad members attending.

0:05:47We have three of five I have not received any notification that anyone was unable to attend okay.

0:06:14FAB Member Ktsanes: I know that Kimberly is joining.

0:06:18Mayor Quinto: Thank you.

0:06:23or vice chair just popped on so he's coming up now okay.

0:06:48Any still don't see sky back on you, do you think we're okay to start without him or did you want to wait for him.

0:06:57Karen Pinkos (City Manager): um I suppose I could leave that up to the mayor, I know that sky is not part of the presentation tonight, but he is usually.

0:07:05Mayor Quinto: let's go ahead and start the meeting.

0:07:10And whenever you're ready near.

0:07:11Okay.

0:07:18Mayor Quinto: Good evening, this may 24 special joint meeting of the city council and financial advisory board this call to order at 6:03pm city clerk please call role.

0:07:32Thank you i'll begin with City Council mayor King to.

0:07:35Your mayor pro tem mattila.

0:07:38Here councilmember abramson.

0:07:40Here Council member fidelity.

0:07:42Here Council member redneck.

0:07:45We have a quorum of counsel our financial Advisory Board members chair Patterson.

0:07:55Oh sure Patterson let me unmute you can you.

0:07:58Try that one more time, make sure your audio is working.

0:08:01FAB Chair Patterson: yeah so here can you hear me.

0:08:03Yes, I can thank you so much, no worries vice chair five fairmont.

0:08:10Member kasten.

0:08:11Here number kits on us.

0:08:13FAB Member Ktsanes: As a.

0:08:14family member white.

0:08:18FAB Member White: Oh yeah.

0:08:19There we go.

0:08:20The form, we also have a form of FAB.

0:08:23Mayor Quinto: Okay, very good pledge of allegiance to the flag or observation of bonus silence I pledge allegiance to the flag of the United States of.

0:08:32America and to the Republic for which it stands one nation under God indivisible with liberty and justice for all.

0:08:42Men clerk up please provide instructions and announcements.

0:08:48Thank you mayor for those participating as a panelist and we have quite a few tonight, please keep your microphones on mute whenever you were not speaking.

0:08:56To ensure compliance with the brown act and to address security concerns attendee images and videos will remain disabled, as well as the chat feature for all participants.

0:09:05for members of the public who wish to provide oral testimony the mayor will announce the time for public comment on each applicable item.

0:09:12If you wish to speak, please select the hand icon to raise your hand if you cannot locate the icon please refer to the document linked, on page one of the agenda for the raise hand feature.

0:09:22attendees joining by phone can dial star nine to raise their hands.

0:09:27When it is your turn to provide comments your name will be called and you will be prompted to unmute yourself attendees joining by phone will be prompted to dial star six to unmute themselves.

0:09:37And as a reminder, this is a special joint meeting and therefore public comments will be limited to the items that are listed on the agenda, that concludes my instructions Thank you mayor.

0:09:48Mayor Quinto: Thank you very much and and welcome to our.

0:09:50Financial Advisory Board members appreciate your service, we have a special meeting here a pulmonary budget overview.

0:09:59and review update of our 10 year forecast, as well as operational and financial status of city departments, we will have a presentation by.

0:10:12department Members, and I wish and I had the special requests to have Council and bad to hold their questions, until the end of the presentation so i'd like to introduce City Council and not city council, the city manager Karen pick us welcome.

0:10:31Karen Pinkos (City Manager): Thank you so much mayor pillow a mayor city council and FAB members is a pleasure to be here before you today.

0:10:40I would be remiss if I didn't somehow mark and mention that we had a tragedy in our country again today, and you will notice that our flags are now flying at half staff, so I just wanted to.

0:10:53Before I get any more upset them i'm just a little upset I think is everyone else's so I just want to acknowledge that today.

0:11:01I also want to thank you all for being here, because there's also a warriors game on so very much appreciate your service and your your attention to this so um so I just wanted to start out by saying that tonight's.

0:11:16tonight's meeting as i've shared with all of you, and as i've shared with with our staff that tonight's meeting is meant to be a preliminary overview of our budget we.

0:11:28held a very similar presentation last year right around this time in May at the City Council meeting and I have to.

0:11:36I have to say that during the City Council meeting, it did go a little long and so that is also why.

0:11:42Staff thanks Thank you mayor that staffs request that we're able to go through the presentation to make sure that all the departments are able to speak and get all of their.

0:11:51Get all of their remarks in you know, certainly if there's any clarifying questions will be happy to do that, but I just want to make sure that all the departments have a chance to get equal time, so thank you for that.

0:12:03Karen Pinkos (City Manager): But this has meant to be an overview meeting so a high level overview of the general fund all of the departments proposed staffing revenues and major expenditures.

0:12:13What we're showing you tonight is not this is just a draft, and we expect that it will change not not in huge ways, but in some ways.

0:12:22Bigger you know in some small ways as we continue to refine the budget numbers, but what the departments are going to share with you today are sort of the big ticket items that are that have changed from the previous year.

0:12:35Again we're checking in with the Council and with the FAB, and this was an opportunity, I think, to have both of these bodies come together at the same time, to hear the same information all at once, so again i'm very grateful for the Fed for being able to.

0:12:50To be a part of this meeting what we will do after this meeting, if there's any direction to me and staff from the city council is, we will finalize the budget document.

0:12:59But tonight is to show that we're on the right track that we've heard the city council's priorities and to highlight if there are any concerns that the Council or the FAB can have with the preliminary.

0:13:08outlook so tonight we're not going to get too far into the weeds that will be for the June 7 meeting once the budget book is published.

0:13:16Also, tonight we won't include special funds so we'll go into a lot more detail at the following meeting, but this is is again a preview so i'm going to share my screen.

0:13:34Okay.

0:13:38Karen Pinkos (City Manager): All right, so also all of the departments are here and they will be able to step in and I would also like to at the appropriate time, introduce our finance director, so you treasure our standard deleted, who is going to share sort of tag team with me today on some of the overviews.

0:13:56So, again just a little bit one more time of the preview, this is a high level draft main focuses on the general fund the major revenue assumptions and the big ticket items that are over 50 K that have changed from the previous year.

0:14:10And i'll just know that this year just spoiler alert we're not asking for budget reductions we're not asking for budget cuts, which is certainly a.

0:14:20Big sigh of relief to all of the staff, but what we are looking for, and I will give Sandra credit for this we're not looking for cost reductions per se, but we are definitely looking at cost containment.

0:14:30This is a carry over budget, this is a move forward budget, not a lot of not a lot of.

0:14:37You know, major changes we're only asking for one new staff position which i'll get into in a moment that's a restoration of a laid off position or a restoration of a position that had been laid off.

0:14:49So this is, this is a very modest but stable budget and balanced over with a small surplus that will show you.

0:14:58To move us forward we're still in a very volatile time we're still in some very uncertain times.

0:15:04Again we're done with the pandemic, I know, but the pandemics not done with us and we don't know what that's going to mean, so this is once again a modest.

0:15:11i'm a very it i've been using the phrase cautiously optimistic, but with the, with an emphasis on cautious but with a true real.

0:15:21Up to optimism, so, as I already stated non departmental special funds capital projects Those are all still being finalized and in progress and those will be given to the FAB in the city council in the proposed budget document that will be published as of next week.

0:15:37American rescue act plan act arpa funds are not included as budgeted revenue, this is per City Council direction of last year.

0:15:45That will we have designated all of the we will be designated all of the rp funding as revenue loss per the US Treasury rules.

0:15:53And that is going to be Alec the second tranche of $3.05 million will be allocated to general funds general government services for this fiscal year so that will end up will show you how that will impact our fund balance.

0:16:08So these are our basic strategies and assumptions the revenue estimates are rather solid and Sandra will talk about that in a little bit, but they they are conservative.

0:16:18And we, you know we will we will go over Sandra and I will go over those on the next slide the expenditures is is pretty much status quo with a straight line.

0:16:30You know the same with revenues were at the last City Council meeting, the city council implemented about an average of 4% increase in the master fee schedule.

0:16:40it's about a three to 4% increase baseline expenditure so it's pretty much status quo just just kind of straight line up.

0:16:47service delivery continues to reflect the operating environment we're in we still have some modified hours we have.

0:16:53A lot of staffing issues which we're all going to get into in in through the departments, but i'll get into that in a moment.

0:17:00Karen Pinkos (City Manager): We have a lot of vacancies, and right now, you know the job market is pretty pretty tight, and so we are definitely that is definitely impacting our ability to provide service.

0:17:13We also, as I said, we've increased our focus on cost recovery, this was also born out of the State auditor's report.

0:17:20But also something that the City Council and city staff have been focusing on these past couple of the school years.

0:17:28So personnel this management and confidential are the are the one group of employees, one of the groups and employees that are on represented, and they are governed by City Council resolution which each year the City Council in June, has considered the resolution that.

0:17:47sets the salaries and benefits and terms of employment for this group, this model and this budget assumes a 3% cost of living adjustment for this group, which would be the first cost of living adjustment of any kind, any raise of any kind, since.

0:18:03And this group has also been subject to I believe it was 44 furlough days over the last two years, which.

0:18:09Is a five to 10% pay cut in their paycheck for the last two years, so this is a huge huge thing for this group, myself included, that we will be able to I frankly, be able to to to give this group.

0:18:26A some relief negotiations for new contracts with our with a several of our bargaining units, including our firefighters.

0:18:35bargaining unit and seiu our ongoing right now, and they are in process and again we'll we'll talk a little bit about the vacant positions and we are actively recruiting and we will continue to be recruiting and there are pending recruitment, that will be coming up.

0:18:52So i'm going to turn this over to Sandra on does speak a little bit about this draft budget and again this is very, very high level very draft.

0:19:03that some of these numbers may change slightly, so this is not set in stone, at this point, but I would like Sandra if you could to jump in and kind of go over this this chart for the Council and forth.

0:19:17Sandra Dalida (Finance Director/Treasurer): Absolutely Santa deleted the finance director and thank you mayor vice mayor Council members and all fat members.

0:19:27Sandra Dalida (Finance Director/Treasurer): Generally, in the revenue category at divided into groups total tax revenue and then total other revenue, the total tax revenue represents 62.2 almost two 5% of the total revenue.

0:19:41The assumptions are very, very modest I use the exact state recommended and approved budget the our parcels and the CPI increase for property taxes was approved in January.

0:19:55Of 2022, and that is the exact methodology that i've used so the property tax reflects what are.

0:20:05The state has approved and our consultant hdl has also verified that the 10.9 is a valid number for property tax.

0:20:14The property chance for tax has also been validated, that there are some caveats with that.

0:20:19Of course, with the inflation increase in mortgage rates, but that is still a relatively conservative number.

0:20:27Considering, where we actually are, today, we are actually about $4.5 million so factoring in that there could be some impacts, because of the mortgage rate and inflation and the cost of petroleum and gas products and the inflation rate for all general products and could affect that.

0:20:50sales tax is looking strong you'll notice that it's almost a straight line our consultant hdl as well for sales tax has recommended that we sort of stay the course until we get to make here.

0:21:03With they do the analysis before the inflation really took over so we've decided to go with the recommendation and to have it modestly increase.

0:21:15The utility taxes, which is more user taxes that is also recommended fairly conservative estimate, so no significant change also with the other taxes and includes transients.

0:21:29There is a motel and Community development will speak to the timing on that, but that will not be online at that we have revenue in 2223.

0:21:38So that's why you, you see, you don't see any significant change also you don't see cannabis in here because right now it's just unknown.

0:21:47So absent our crystal ball, the things that are really unknown, we have left them to come in, hopefully, a lot more information in June and or mid year.

0:21:57The second category of taxes of revenue other revenue represents 37.7 of the total revenue.

0:22:07Those are also very stable very consistent, there are no surprises no significant increases, everything is just sort of holding steady with modest increases.

0:22:20So the total revenue that you would notice is $45.4 million that's a significant increase over prior years and the categories that I emphasized, are the reasons for the increases.

0:22:36Sandra Dalida (Finance Director/Treasurer): So let's move over to the expenditure side that does include the city managers recommended 3% also it includes one by 5%.

0:22:45For the impact of Labor agreement for police it starts in July and then their second increase that is January beginning out 2023 that's another 1.5%.

0:22:57And all the benefits that are affected by that as well, medical papers fica everything that's attached to wages and it has an impact from wages.

0:23:07And if you the non the salaries you'll notice is 27 million, so it is about 1.8 million over prior year, and that is because of the requested.

0:23:20recommended increases and but presenter total it's about 60% of what we're recommending and then the non personnel expenditures, there are no significant changes in those as well as the city manager said we're in cost containment so we're holding steady and making sure that.

0:23:41Your priorities are met, that you have a fund balance that there are no layoffs that there are no furloughs there is no need for a trans and there is no negative fund balance so all of those priorities in mind, that is, the revenue and expenditure.

0:23:59Karen Pinkos (City Manager): And then i'll know that.

0:24:02down here what we're looking at again at this point is about a $572,000 fund balance for this year, but that has a caveat as well um that assumes that all of this.

0:24:20And we'll get into staffing in a moment, but we have several vacancies that still need to be filled and will be filled over the next several months, or at least when we can fill them recruitment is.

0:24:30definitely been a challenge and there's been more than one time.

0:24:34Just in the last few months that we have held interviews chosen someone and it didn't work out so we've had to go back out again the job market again is is is rather volatile as well.

0:24:45And so, this does not include salary savings in previous years, we would have line items in the budget that would account for our vacancies and be a negative number that would sort of subtract from that.

0:24:58What we have done to be conservative is we've assumed that this 16 for all of the for this 27 million right here.

0:25:05That everybody starts on July 1, but we know that's not true because we have several vacancies so that means that this will see some salary savings.

0:25:14That will end up adding to this bottom line what that is depends on how quickly we can fill those vacancies, but at this point.

0:25:22This is assuming everyone starts on July 1 this is how much we would have so I say that again to be Conservative, I know that the Council and the FAB is recommended a million dollar surplus.

0:25:33And we believe that, with the vacancies, we have this will increase as long as we again contain these costs so.

0:25:43Sandra Dalida (Finance Director/Treasurer): If I, if I might I was going to wait for the staffing chart but as a rough estimate.

0:25:50Because of the variability in the vacant positions and variability in the salary and wages, if you took an approximate of $4,000 per pay period per vacant position and you'll see the number of vacant positions that we have on slide five if.

0:26:09If through period first two periods of the fiscal year so that would be to pay periods, and if we continue with that same number of vacancies.

0:26:18There would be a salary savings of approximately 220 $4,000 which includes wages and all the associated benefits.

0:26:26And then, if we drop down to 10 vacancies after that four pay periods 345 and six in the fiscal year.

0:26:33We would have another 440,000 in salary savings for approximately 670 2000 and it really doesn't matter which positions are vacant positions are filled and other people retire or move on to other.

0:26:49or employment opportunities or leave the workforce so planning on approximately 10 making positions of a different mix or compliment throughout the year, you would probably add to your 570 2000 fund balance and least another 650,000 to that family.

0:27:12Karen Pinkos (City Manager): Okay, and then the last thing again arpa is not included in this draft budget as a revenue.

0:27:20That will add to next year's budget it will be included to be allocated to this fiscal year the second tranche so that will add to the fund balance for this year so right now we are projecting a fund balance of about $580,000 at the end of this year, which again we think is going to.

0:27:38change because, particularly because things like real property transfer tax and the vacancies, we already have.

0:27:43So this will likely increase, but at this point again, this is a conservative estimate, so this is an estimate of about $3.6 million at the end of this year alone, which we would add to our fund balance of which currently is about $7 million.

0:27:59Okay, so i'll move on to the next slide.

0:28:04So this is.

0:28:06Again, very preliminary very draft, but this is what the charts look like the projections look like for.

0:28:14The general fund projections for the numbers that we just showed you now, this is going to change again slightly and we'll have more exact numbers during the budget presentation on June 7.

0:28:24But the point of this is that you can see, so the reserve goal here represents the Jeff away.

0:28:31Which is the government finance officers Association, the GMO a recommended 17% fund balance that city should hold we've met that this year.

0:28:41we're at 7.13 right now, with the additional our budget and 3.05 arpa and the surplus, we expect.

0:28:52A minimum of $10.7 million general fund balance right in this fiscal year right here, and as we continue the again what we showed you this keeps going up.

0:29:03i'll note the right here in 2526 i've referenced this several times, the Council and the FAB both know this, but just as a reminder in 2026 our redevelopment bonds are paid off and the property tax.

0:29:15Essentially, goes back to normal, if you will, for all of what was formerly in the redevelopment agency and that's why this tends to shoot up as quickly as as.

0:29:25The way that it does, because this means, around this time the property taxes will continue to increase and so that's, which is a very good sign, so sort of this period.

0:29:35Obviously we've gotten This is where we've gotten out of the woods, but this period is where we need to make sure we're continuing to watch before the 26 around the 2627 fiscal year.

0:29:47we're then able to start to really count on some of those revenues going up with respect to property tax.

0:29:53And then over here, you can see, and I know, the Council has been looking at some of these charts for the past two years.

0:29:58you'll notice that there's nothing under here, which is nice so again, these are smaller numbers and we know that but they're still to the positive.

0:30:05And what this shows us is again in this in this little this section right here, these next few years if we're continuing to practice.

0:30:13Cost containment again I like that phrase it's much better than cost reduction.

0:30:18But cost containment right here, this will allow us to continue to go up in the out year so it's it's looking very positive and again this is going to change and we'll have more exact numbers on June 7, but this is what we're showing right now.

0:30:33Karen Pinkos (City Manager): However, you may have heard in the news I know I have that there's maybe a recession coming inflation is increasing and there's all sorts of volatility still out in the system so.

0:30:44We work with management partners and our consultants who you know, the Council knows quite well that we've been working with them for years they helped us develop our fiscal response plan.

0:30:55Where we made almost $4 million of cuts over the last two fiscal years to get to this point.

0:31:01And they've been really working with us, and this was the model that they developed so we asked them if they could run scenarios for us to show Okay, well then, what would that look like if we did hit a recession.

0:31:14So these are ugly charts but there's some good news in them, I promise.

0:31:19So we ran two scenarios.

0:31:21This first one would be a low recession and again, you can see, by the with the model that they've developed can assume a low recession or a high recession, so the first one.

0:31:32A low recession that last two years, we would be looking at a total revenue loss of about $1.2 million.

0:31:38This chart it's a little I know it's a little small but the red numbers are the numbers that management partners, and we have looked at within our system.

0:31:48That would be at the most at risk, if you will, if there was a recession so obviously property tax.

0:31:54sales tax business tax to it, of course, the property transfer tax and then all of our fines and permits and fees and such things, this would assume.

0:32:05You know, between a point six you know for this fiscal year or next fiscal year could be a.

0:32:11Two to 4% decrease so that would assume What this means, so the good news is out of this while this, this would show this red line would be where we would end up where this to happen, obviously, because we've done the work we have, and of course thank you are been Thank you.

0:32:31Have a bustling real estate market, but all three of those things together what got us here, not one of those things would have helped us all three of those things that we did.

0:32:40keep us over the line so, even if we dip we would still be overlying if we were forced to use fund balance for some reason or if we were forced to not continue to increase any of our.

0:32:52revenues and we lost this 1.2 million, we would still be above the 17% line so again, this is why, having a general fund balance is so important.

0:33:02In this scenario over here, this would be a three year recession that would assume a greater loss of all of these revenue categories.

0:33:11To the total of about 4.5 sorry $5.4 million you'll see obviously that does dip below the 17% line here so as I showed earlier in this kind of.

0:33:24areas still both of these still go back up in the 2526 as, as noted, because of the property tax change and the redevelopment bonds being paid off in that area so that still goes back up we're not we're still below the.

0:33:39The 17% line, however, the good news in this chart is again because we've built that fund balance and we continue to build that fund balance, as you know, our minimum.

0:33:50goal which we don't even maybe we want to change that, but the current minimum goal is 10% of general fund expenditures, which is this line, right here $4 million and we.

0:34:01And we would still even in a high three or recession we could still manage to stay above our minimum fund balance so that is.

0:34:10Again, a testament to the City Council a testament to our staff to the Community to the FAB.

0:34:15To everyone who has made sure that we are all continuing to keep these fund balance goals high that we are continuing to make sure that that is the priority for us and that we're containing our costs, so that even if.

0:34:28A two or three year recession hits us, we are in pretty good shape, which we could not have said that two years ago.

0:34:36Karen Pinkos (City Manager): And so i'm just you know again grateful, but I just also again this is, I mean these aren't pretty and it certainly could be worse, I mean this is just a projection, this is just a snapshot.

0:34:45This is just a prediction it's not meant to scare anyone, but what it is meant to show is sort of test it's it's kind of that you know test, could we actually weather that storm.

0:34:55And I think that this shows that we could, and what we will do, then, is around this time frame, because we're going into.

0:35:02So it mid year this year going into the next fiscal year this timeframe we're going to be watching.

0:35:08The economy as closely as we can to make sure we need to make adjustments so that this line doesn't dip as far down, as is this shows, so what these projections are for is for us as a staff and for us as a community and.

0:35:21To take a look at this and say all right in this obviously right here, we want to try to make some changes so that we don't get that far left, and we can make those decisions at that time.

0:35:33Sandra do you have anything to add on that.

0:35:36Sandra Dalida (Finance Director/Treasurer): Okay perfect Thank you okay.

0:35:42Karen Pinkos (City Manager): Okay.

0:35:46So this is a preview of our staffing and This just goes to show where we were in.

0:35:54Essentially, two fiscal years ago fiscal year 2021 we had already made some layoffs by this year we made additional layoffs in 2122.

0:36:03This was the this was at the highest point that we were pre pandemic, we went down to 160 1.2 for our for fiscal year 22 and that included layoffs that included.

0:36:16It doesn't it didn't include vacancies, this was these were all paid full time positions at mid year, the Council will recall that we added three positions we added one in.

0:36:25Transportation manager and Community development we added a recycling maintenance worker in public works and we added a community services coordinator in.

0:36:35In public i'm sorry recreation, the public parks and recreation were reinstituted positions from those that had been laid off or had that had had positions eliminated so right now we are at a one to 160 4.2.

0:36:54This is an ugly number and there's a lot of reasons behind this number, and I know all of the departments will talk about this during their sections.

0:37:02On this one, frankly, is the one that concerns me the most and that's in our police department, we do have a probably the worst.

0:37:10Right now we're shortage that we've had in memory, and this is an issue that that we are need to continue to watch and that the Council needs to be mindful of this is definitely impacting services to our Community.

0:37:26Others vacancies are not somewhat typical as far as what departments go, however, because the departments had been reduced already due to layoffs.

0:37:37This is we're at a critical point right now with our staffing and that we need to ensure that we're doing what we can to recruit to retain.

0:37:47Our our employees people equal services, services equal people if we can don't have the people we can't provide the service.

0:37:55And so, this is something we really need to monitor and i've been working with our HR staff i've been working with all of our department heads.

0:38:03To put our heads together to come up with as many creative ways as we can to try to again retain the staff that we have and attract new employees.

0:38:12it's a really tough time to be doing that, right now, but I just want the Council to be very aware that this is saving us money, no question.

0:38:21But it's impacting our service big time and our community needs to understand that we have not.

0:38:27In my opinion, and I know in a lot of people's opinions I don't think we've been able to provide the services that we've been able to provide in the past.

0:38:34And that is literally because we don't have the people to do it so as we ramp back up as we start to restore services that were lost to the pandemic, as we start to really consider.

0:38:45What we want to do and how we want to do it, we really need to be mindful that we have to take care of our staff, and we have to take care of the people who do it, we have to be able to attract people to come work here.

0:38:58So there's my little speech on that.

0:39:00I will be asking you for one position in this fiscal year at this point, and that is i'm not trying to sound selfish, but that is in the city manager's office.

0:39:12We one of the one of the things that the services that i've just referenced that i've been disappointed that we have not been able to maintain.

0:39:21Karen Pinkos (City Manager): His public engagement and Community engagement and public information.

0:39:26The assistant to the city manager position was laid off the previous fiscal year and that person was essentially the city's Pio as well as the not just the CIO for city wide but also CIO in our emergency operations organization.

0:39:42And so, because we don't have a person that is essentially responsible for Community outreach and public engagement.

0:39:51That has said that, I believe that has very much suffered and so.

0:39:57especially considering that at the last two Council meetings we talked a lot about.

0:40:02emergency services, we talked a lot about emergency.

0:40:04Coordination getting the messages out to the public being able to coordinate.

0:40:10Again, all of those types of informational activities that need to be done in a good in any sort of situation much less than emergency so that is going to be one of my proposed.

0:40:21restorations I plan to restore this at not the assistant to the city manager level, but it would be a lower level position and being management analyst level position so that is.

0:40:33A slightly less cost to the city, but I do believe that this is something that that this isn't he needs and would be incredibly beneficial to all of the departments into the community at large, so.

0:40:45One more one position one ask one modest position, but again, this is not somewhere where I thought we would be two years ago.

0:40:55So I will kick off, and I will have my my city management team is here to assist to start talking about the departments and.

0:41:05What we will be what we will be again the big ticket items that will be proposing.

0:41:11um so each department will talk about their staffing there they look at their or they look at their org chart they'll talk about their staffing.

0:41:19And then they will talk about their major revenues and expenditures so there's like two or three slides PR department so again, I really appreciate.

0:41:28Having the departments here and being able to talk with you all about that, and again I know you, you may have some questions for all of the departments so.

0:41:37Mayor Quinto: I just want to say to the FAB team, and my colleagues to jot down some questions and and after the presentation, you will be able to ask the question so go ahead Kevin.

0:41:52Great.

0:41:54Karen Pinkos (City Manager): Thank you so much, I appreciate that.

0:41:56So, again city management consists of all of these divisions, the city.

0:42:00We have the City Council under there, although I know that you don't report to me I report to you, but you are included in this division, for the purposes of the budget.

0:42:10The city attorney city clerk human resources and information technology, as you can see, this is where the proposed analyst would fit into this system would report to the assistant city manager.

0:42:23It information and HR report to the assistant city manager as well, she is also our our HR over our HR manager so.

0:42:35Again this just shows a pretty pretty steady we dip down to nine we are we laid off the assistant to the city manager and a management assistant in previous year, so this would restore us to 10.

0:42:51So there's no major revenues in this in this department barely any revenues at all, actually, these are mainly service to internal service departments, so that is why we don't we don't charge fees, we don't do a lot of outside.

0:43:08engagements that that would bring in any revenue so um so while these are generally all of these expenditures you'll see that are over 50 K.

0:43:18The city council didn't have anything but we thought we'd included in there, we didn't want you all to feel left out, but it is the largest.

0:43:24Council expense that has increased, and this has increased from previous fiscal years, mainly because so many events and conferences that the Council usually traveled to have been.

0:43:37Virtual for the past two years, so now they're going back to everything is starting to open up again we're going back to you in person meetings so that you know travel.

0:43:47hotel lodging all of those things is included in this and holly can talk a little bit about how that there is some allocations that this Council had agreed to per their.

0:44:01Policy that you all recently updated so holly why don't you go ahead and chat about that, and then you can talk about your talk about the election.

0:44:12me so the Council in the last few years has had a allocation per Council member.

0:44:18That was used for the Council, the individual Council member to determine and decide what kind of events, who wanted to participate in in terms of how they're representing the city.

0:44:28That was not inclusive of any cost for the local liaison assignments that are made by the mayor annually.

0:44:33So we have taken all of the travel and training as well as events and field trip costs we've put them all in one bucket to make it easier to administer and make it easier for the Council members to track.

0:44:47And, based on the request by the Council members some assumptions that we made internally, based on what Council members have attended over the last several years.

0:44:57We have allocated $5,000 per Council member for the upcoming fiscal year that's the estimate, we came to and that covers all of the requests that we received from each of the Council members.

0:45:09And then, in addition, we have added an additional $4,000 allocation for the role of the mayor and we have included a couple of.

0:45:19request to be more involved at a national level with things like the National League of cities so.

0:45:26That puts the 5000 allocation per Member 4000 additional for the mayor and then there is an additional.

0:45:3430 $700 for a assumption that we will have a handful of new mayors and Council members attending the new mayor conference.

0:45:44The city leadership summit and things like that for cal cities and then with regard for two elections this year, the election, while the cost is actually lower than in prior years it.

0:45:57It was even lower with us shifting to an all male ballad election, which is now permanent in the state of California, however, the cost of peepers has risen.

0:46:08quite substantially from the county so we're estimating about $3 per person for each registered voter and and we are right now around 17,500 so we're estimating for two Council seats and one potential.

0:46:23measure if our we have an initiative citizen initiative petition that's currently circulating if that does go forward and make it onto the ballot, then this would also cover the cost for that.

0:46:34Great um.

0:46:37Karen Pinkos (City Manager): The next two items on for the city manager department that I will be proposing professional services for the Bart library project, so this is this is.

0:46:48You know, potentially an incredibly exciting project, as the Council knows, there is the Bart elsewhere to Plaza to do development that is happening.

0:47:01The developers were asked when they submitted bids to Bart if they would be considered, they would consider including a library in that project, as you know.

0:47:10I have worked for the city of El cerrito since 2001 and i've been trying to build a library hears that entire time.

0:47:17So this was something that was a really exciting possibility for the developers and the Bart board is excited about it, I know our Council is excited about it, this could be a really.

0:47:29interesting and like groundbreaking type of project, and so one of the things, though, that we need to do is that we need to work with bar, we need to work with the developer, and we need to work with our with our own community.

0:47:43to figure out a lot of the logistics involved since its parts property.

0:47:47The they're building the buildings, how would we work into that how would we pay for it, who would own it all of those things.

0:47:54Karen Pinkos (City Manager): But also designing the library, we have done a needs assessment in the past we've done a building project in the past, so we now need would then but that all assumed that we would build a freestanding library somewhere with parking lot.

0:48:07This would be very different, so we need to shift and so i'm looking at about $50,000 in professional services like consultants and it might not be that high.

0:48:16But we just want to make sure that we have enough if we need to look at various avenues that we need to take if we need to end up coming back to the voters, all of these things are still being.

0:48:27are still to be determined and so we're going to get some help for us to walk us through that with.

0:48:33Our stakeholders with our public with the library foundation with friends of the library and, of course, most importantly, with the contract is the library staff so.

0:48:42So that is a $50,000 request $55,000 we have been talking our staff has been talking with a couple of different firms, this Council certainly.

0:48:52knows that staff goes for grants as much as we possibly can.

0:48:57But we certainly because we've been short staffed it's difficult for us at this point to be doing our jobs, as well as trying to look for grants and if you've ever done a grant.

0:49:06You know administering the glass getting the grant is almost the easy part filling out the application is almost the easy part having to administer it reported, especially for things like state and federal grants is incredibly time intensive and so we've talked to a couple of different.

0:49:21firms that do grant writing services, and so this is a set aside to engage one of those firms in those services so that we can start to try to alleviate some of our staff work.

0:49:33So Alex would you like to talk about the next two items.

0:49:38Alexandra Orologas (Asst. City Manager): For us, and the next ones The first one is $200,000 for the class and compensation study, as you may remember, this was a.

0:49:49Recommendation from this state auditor, and so we plan on coming back to counsel in July, with a proposed contract, we did issue a request for proposals back this spring.

0:50:04And so we do have a firm that we will be recommending to the City Council to do a citywide class and cons study and then lastly from human resources is $300,000 for a bucket of items, this is for general legal fees.

0:50:23Funds for investigations and also settlements in the previous fiscal year and this was $416,000 on mostly due to a one time large lump sum settlement on and so now on I i'm recommending $300,000 on given some anticipated.

0:50:48Investigations that will be going into the next fiscal year investigations our personnel investigations on you know within the city, we take, we take personnel issues very seriously and so sometimes.

0:51:03We cannot do investigations in House for a variety of reasons, and we have to outsource those so with That said, I will actually give the virtual microphone to pete Salazar who is our it manager and he can explain to you the information technology items.

0:51:25Pete Salazar (IT Manager): And yes, good evening mayor Council members and Members, for the first item for IP.

0:51:32hardware is the same as previous year 79, so there are no changes for software licenses and maintenance, we have an increase of around 33,000 for the next fiscal year, this is to address the updated laser fish.

0:51:50system that we have we are upgrading from the on Prem to the cloud system that means the vendor will provide all the software, the hardware.

0:52:01licenses and also the the backup and all other features new functionalities that will allow us to interface.

0:52:11The laser fish on the cloud with our existing applications, such as the rocket Community development and also our earpiece system Tyler new world system.

0:52:22If you notice the hardware is much less than the software, we are trying to shift from on premise system to the cloud, so we are not buying a lot of hardware in the next few years, as we are subscribing to a managed service on the cloud for like a software as a service.

0:52:45The 33,000 last increase will address the laser fish upgrade also.

0:52:52anticipated increases on the software licenses and maintenance of the various software that we have such as GIs go clarity.

0:53:04Community development eat rocket additional licenses for MS 365 and other you know expected 5% and 10% increase on those maintenance increases, so that is that made, that is the difference.

0:53:24Karen Pinkos (City Manager): Great thanks pete and then last but not least, this is in the non departmental.

0:53:28Category on the library extra hours this year.

0:53:33will be about $64,000, as you all know that the you know in in the for the past several years this contra Costa county continues to provide 40 open hours at all of the Community libraries, the additional any additional hours are per city.

0:53:55The annual cost again is about $64,000 because of the size of the LCD to library, it cannot accommodate any additional staffing, so the city cannot does not have the option to fund more than 46 hours so i'd like to make that clear to the Community, that this is not.

0:54:14You know this is not a compromise or anything like that this is the most that we would be able to fund, and so the county again contributes 40 base hours and once the.

0:54:26library project is considered that may completely change, but at this point with the size of our library and where we at where we are at.

0:54:36Within the library system, this will be 46 hours that will continue to remain open throughout the system, and so that is again placed in non departmental for the City Council, I believe, made that change last year.

0:54:50Karen Pinkos (City Manager): Okay, so at this point i'm going to turn it over to Melanie mints who is our Community development director and she will go over her department.

0:55:05Melanie Mintz (Community Development Director): Good evening city council members, I am Melanie minutes, the Community development director and.

0:55:14I think, as our departments are also distinct the way we go over these numbers.

0:55:19might be a little bit different depending on each department, and so I look forward to your questions also at the end and we'll keep this.

0:55:27brief So you can see that the department consists of you can't really see this on this slide, but it really consists of several divisions, one is our building division which does our building permits.

0:55:40One is our planning division which does both our plan checks to make sure that the building permits are consistent with the zoning ordinance but also entitled and approves new projects.

0:55:50and increasingly response to huge numbers of legislation coming down from the state from the way that we handle at us to housing entitlements.

0:56:01And, as many of you know kind of one of our main economic development tools in the city has been this and pebble avenue specific plan, and that has been something that was adopted in 2014 and really started to see projects come in and around 2018.

0:56:16This year, as Karen mentioned earlier, we were given authorization to add a program manager for sustainable transportation, this is going to be a big position and it's been something that's been needed between kind of public works and.

0:56:31Community development for some time kind of it had a straw that broke the camel's back, as it were, with the Plaza project at Bart which is going to require a significant change to the way that we manage parking.

0:56:43Around that Bart station, in particular, but other cool opportunities that come with this as expanding our electric vehicle infrastructure.

0:56:50program which was kind of has been housed in environmental services but capacity has been really stretched.

0:56:56And really looking at how people can move around in in a variety of ways, over time, this position will both have some cost recovery associated with it through paid parking programs, as well as be able to.

0:57:10raise revenues and really help with grants around transportation.

0:57:15He by micro mobility, but in this first year in particular first couple of years, it will be general fund supported.

0:57:24Otherwise we Sue a building and then we also have a program for affordable housing that was changed this year, you can see up on my.

0:57:32Top lines, I don't know how about a pointer but we had an affordable housing analyst that was converted to a senior program manager and housing and economic development, and that was partly the job kept growing with things like the registry.

0:57:47And again, increasing legislation, and we also wanted to take on more economic development activities.

0:57:54I think I can always come back to this during questions, I guess, in terms of vacancies I should share so we have had a senior planner position vacant.

0:58:04For some time, and as Karen mentioned we've been trying to recruit during during furloughs and other times it's been a challenge so we've.

0:58:12had to both scramble by just spreading ourselves thin as well as occasionally backfilling with that position similarly are permitted missions have been vacant and so we've been filling that also with temps but i'm happy to report that we are making offers on that as we speak so.

0:58:30I think next slide.

0:58:33So I only included on this slide.

0:58:38Areas where my my budget my revenues assumptions were increasing significantly.

0:58:45So in 2017 we did a cost allocation plan and fee study so many.

0:58:53My budget ranges from about 60 to 70% cost recovery so revenues are about 60 to 70% of my expenses, as I said, many of our programs are cost recovery so building permits and entitlements and some aren't advanced planning.

0:59:10code updates.

0:59:14The affordable housing program so many others, but in 2017 Council it was a it was a big the cost allocation study in the fee recovery study resulted in some.

0:59:25Somewhat significant increases and so at the time Council said, for us to be gradual, as of last year, those the cost recovery on our building permits and building plan check all that to 100% so it did result in.

0:59:40significant increase revenue, but Similarly, as you all know, we had a backlog after coven, and so we also had an uptick in permits and just activity, so we range without a large project we range from.

0:59:54About 1000 permits a year up to about 1300 permits a year this year we're already at 1300.

1:00:00So it's been a really, really busy year similarly solar, which had been hanging in the 70 solar permits per year started increasing about 50% year over year.

1:00:10beginning in 2019 when we got up to 90 permits and this year we've done 242 to date, so all those things have resulted in some increased revenue, however.

1:00:23When a big project comes in, it can be a big jump so, for example, if one project comes if a project on the avenue comes in for 70 units, it can be $100,000 plan check fee.

1:00:34$100,000 building permit fee a $40,000 planning fee public works and fire also get so those some of those revenues, so it just one project could be in a year another 200 250,000 and only one more permit.

1:00:50Some of those converted to expenses so over the last couple of years, the city manager finance directors and I have decided that we're only really budgeting for kind of a conservative baseline.

1:01:01Just basically what would happen in a in a regular year with 10,000 households some percentage of those replace the roof some do water heaters some at decks or remodel and maybe a couple of houses are built.

1:01:13So we really budget for that, because that seems to be pretty consistent year over year within a couple hundred permits, however, when a big project comes in.

1:01:20Then suddenly there's new revenue and new expenses, so we, at this point, tend to not count those until they come in, I can kind of look at my crystal ball and tell you what's going to come in.

1:01:31But we're not the lender and we're not the applicant, and so we do I see another one probably coming in this year and, hopefully, a couple next year, but those are I don't budget for.

1:01:43In terms of expense similarly.

1:01:47I only focused on things that were pretty different One of those is as you've city council's heard that the FAB hasn't.

1:01:54We are mandated to have our safety element updated this year generally when we do advanced planning we've been really fortunate based on our location and our grant writing ability we have been able to fund things like the specific plan and other advanced planning.

1:02:07through grants the safety element does not have grants that we know but we'll keep looking, so we are asking for the funds for that, and I know it's an incredibly important.

1:02:18project for the city, this will include things like climate adaptation and a lot of focus on fire and evacuation routes and a lot of other mandated.

1:02:28elements and the really the own the $50,000 for technical services is, we have a big backlog for many years that we've been working on.

1:02:37of getting past permits scanned and put into laser fish to make it a lot more efficient for the public to be able to find those online and ourselves as well.

1:02:47In building because i've mentioned that our volume is so far up, we have two professional services that we utilize because this is also not something that's predictable year over year.

1:02:58Is we have a backup permit tech, who is a third permit tech and, as you can tell, we you haven't seen any complaints in our timing, so when when our volume is high, we need extra help with permit processing.

1:03:10and, similarly, we need extra help with inspectors to be able to keep our pace with what the volume is.

1:03:18If a big project comes in, like the hotel or multifamily we also use those revenues to bring in an inspector for those types of projects.

1:03:27and similarly so with the last line item which is architect and engineering services we use outside plan check for our large projects, so we only have one plan checker.

1:03:37And that one plan checker typically does.

1:03:40You know 800 to 900 permits a year when a big project comes in that takes a long time to review that is sent out so that it doesn't cause it delayed for the projects that that plan checker is looking out.

1:03:50And, as I mentioned, solar went up to a couple hundred permits per year and was has some state mandated timelines in terms of how quickly you get those out.

1:03:59So last year when we were trying to handle those in house, it was really pushing other projects out and causing delays, so we now have a contract and that's outside and the.

1:04:09So those 200 permits are processed outside are issued and we do cost recovery on that so they charge a fraction of what we take in so that we can also cover our expenses and indirect at both indirect and direct.

1:04:23All of these, I take a pretty conservative look at at the beginning of the year, and as you saw this year we come at mid year.

1:04:30If it's been a particularly busy year we come back with a revenue and expense adjustment and just like last year that's almost always in this case going it.

1:04:40Always is asking for revenues that exceed the expense, but a portion of those revenues do have expenses with them in a busy year or when the big projects come in.

1:04:51So I think that is what I wanted to share there's a lot more that I want to share but i'll let you ask questions at the end of the presentation.

1:05:01Karen Pinkos (City Manager): Thank you Melanie.

1:05:04And then Sandra.

1:05:08And yes, hi shira we see you.

1:05:17Sandra Dalida (Finance Director/Treasurer): I apologize for the delay, takes a while to kick in.

1:05:21we're on the finance department, I wanted to provide a general overview of finance department, there are six budgeted positions and there are two vacant positions, so we have a vacancy rate currently have 33%.

1:05:34Which is significant, there is 112 changes that will be proposed, I think one was last year.

1:05:43The funded finance Supervisor will be responsible for budgeting so that will be our budget manager.

1:05:49with responsibility for budget planning and administration forecasting dashboard analytics interactive dashboard.

1:05:57which I know that you're very interested in and scenario building and all the What if.

1:06:03opportunities to a dashboard so that would be the budget manager maintaining the integrity of our budgeting and Budgeting system.

1:06:11Also, the accountant one would be also a minor change from the prior position, all in the same bargaining unit and that's where as the revenue streams become more diversified with cannabis with trance.

1:06:27hotels and other revenue streams coming on board or increasing the financial reporting that goes along with that, and the goal to bring in more grants.

1:06:38The revenue recovery recognition and all the financial accounting is a heavy lift so making that transition to ensure that we have the.

1:06:49expertise to meet all of those financial departments, is the accountant one role and as a backup for the senior accountant for vacations and other leaves and coverage.

1:07:01So that's the staffing mix next are the major areas of operation, even though there are no significant changes, I just want to have an opportunity to review those with you.

1:07:12We have the accounting area 54,000 for external auditor for the mandatory annual comprehensive financial audit.

1:07:20and also in the financial area with that the same $60,000 for Tyler technologies that is a new world financial earpiece system, and as for the annual contract.

1:07:30Budget and treasury there's $50,000 that's the number of financial professional services contracts we've got a significant one with hdl.

1:07:41That contract is our financial advisor for property tax and sales tax revenues and analysis nbs they help us with our storm drain fee fee roles.

1:07:54lighting and landscaping assessments and annual levies and then we've got will down, they are for all of our disclosures.

1:08:04Continuing disclosure requirements and dissemination of that information, the next category is technology.

1:08:12Sandra Dalida (Finance Director/Treasurer): You have a number of technology systems with a slight increase in this category about 25,000.

1:08:18we've got open gov that we need to update and maintain interface for and to renew that license also were kiva that's our current budget.

1:08:28Publishing software that contract expires in October and it's no longer supported by Tyler, so we will have to identify another magic with publishing software option.

1:08:40So, and that expenses unknown at this time and i'm just estimating that the help from it $25,000 also accountants, we also have them on standby.

1:08:52When we need temporary accounting assistance which we do, however, actually reaching out to them twice, they have no one available, they have were number six in line behind other cities.

1:09:04And as soon as someone becomes available, I hope that we will have repeated and filled and we will no longer need their services and that's a summary of the finance department, the major expenditures.

1:09:20Karen Pinkos (City Manager): Alright, so next we will have interim fire chief was a custom one.

1:09:25Jose Castrejon (Interim Fire Chief): But even everybody sick us they're going into fire chief i'd like to go over our staffing model.

1:09:31Karen Pinkos (City Manager): We.

1:09:32Jose Castrejon (Interim Fire Chief): At the fire department or budgeted for 37 positions 35 of those are currently filled.

1:09:37we're in the process of filling the two that were created due to retirements recently.

1:09:44That includes one administrative assistant three ship the time she's been training officer nine captains and club engineers and seven firefighters.

1:09:57Jose Castrejon (Interim Fire Chief): And it's our ideas to be hostile staffing three person personality station and if no one's on vacation have a fourth person at the main fire station to provide additional support.

1:10:13That covers our our current staffing for operations $100,000 we've allocated to fund the oh yes.

1:10:25That is 100% reversible we make every attempt to estimate the most accurate projection possible of year, to date, fiscal year to date, we are currently about 600,000 with current deployments going on with personnel, which brings us closer to the $700,000 reimbursement rate.

1:10:48The candidate and fire protection district provides us about 30% of the fire department budget at $3.9 million on this measure each one's those were provided by contra Costa county help to help enhance medical services.

1:11:06Recently the.

1:11:09Due to the census of the amount allocated by the county health department dropped to $80,000.

1:11:19Based on census figures in that amount will hold for the next three years, and every year we have a redevelopment program we allocate $100,000 to abate properties when needed and that becomes a LIEN on the property and covered during.

1:11:38By contra Costa county.

1:11:40In addition, we contract with the administration fees, we contract with contra Costa county fire protection district for our district services.

1:11:48And outside contractor plants tech services sprint reviews promotional exams background investigation it's like a look valuations all those and.

1:11:59You know figures go into the 299,500.

1:12:04Again, the 800,000 expenses for the out of county those 100% reversible from the state and all costs, all expenses are paid for, including the maintenance on the apparatus.

1:12:16and repairs that are needed to keep those in service additionally with new hires and our constant maintenance of our personnel.

1:12:28$220,000 for an annual P P apparatus service of not only the fire engines lot of products staff vehicles and not to mention feel about a tremendous fuel costs increase this year we're estimating about 40% higher than the previous year.

1:12:48And again once again that we debated.

1:12:52Those of course vegetation management.

1:12:55once a year, and those are all recovered.

1:13:00From the accounting on on the property tax know.

1:13:05and

1:13:07Karen Pinkos (City Manager): Great Thank you so much, and sorry for this was $600,000 she said that was the number, I had meant to include in that I apologize for that.

1:13:15Jose Castrejon (Interim Fire Chief): Sorry okay.

1:13:17Karen Pinkos (City Manager): My fault okay thanks is a.

1:13:20Great next up, we have chief paki.

1:13:25Paul Keith (Police Chief): Anything Council on paki through Chief of.

1:13:27Police, thank you for having me here tonight here to talk about some basic components of the police department budget this year.

1:13:34So, starting with the org chart and the position chart on this slide you'll see that our organization remains mostly the same coming into the current the next fiscal year.

1:13:44One of the things we're planning on doing is adding a senior record specialist position back into the staff count.

1:13:53And also reducing one of our record specialist position so basically the senior record specialist will replace an existing record specialists.

1:14:00These positions are a secondary supervisor and they're also a designated trainer for staff and the records department and new employees that are coming into the Agency.

1:14:10We found, especially during the pandemic that we really lack some depth in the supervisory position our front office, and we want to address that.

1:14:18we're also looking to add a traffic officer back into the organization as well.

1:14:24Over the last year and a half we've done a bit of an experiment on pulling back on a dedicated traffic enforcement Program.

1:14:31I can say that the results haven't been great we've seen about a 75% reduction in traffic citations that are issued and while that might be.

1:14:41Nice for a motorist likes to speed around town, it has, we do believe it has negatively impacted traffic safety.

1:14:49One of the biggest drawbacks, is that, because our staffing is low and we don't have a dedicated traffic person.

1:14:55And we have neighborhoods that call about specific traffic issues and asked for an officer to come up there and address them the often don't have a staff member available to actually do that so.

1:15:06We believe that this would really help add to the city's traffic management plan and enforcement really is a piece of the traffic and engineering puzzle that's missing right now.

1:15:18I and traffic officers also impact our revenues as well, so currently our revenues year to date are about $40,000 previous years we've had well over $100,000 hundred $50,000 based off of having an active traffic officers.

1:15:34are moving on to the next screen.

1:15:41Is some of our major expenditures so as we take a look at these one of the main lines for police car administration is our contract and service agreements line.

1:15:51There is a pretty significant change this year we've worked with our partners at the Richmond police department.

1:15:56And we've managed to renegotiate our communications contract is going to be coming before you on June 7.

1:16:03But the initial agreement is that it's going to be getting reduced from the 920 4000 that we paid in the current fiscal year.

1:16:12down to 812,000 and the new fiscal year with a 2% adjustment each year after that, for the next five years, I have to say, the Russian police department, a really excellent partners and public safety, we really value their partnership and keeping both of our communities safe.

1:16:29Now this reduction and what we paid for dispatch agreements will help offset the $30,000 increase from animal control.

1:16:38Animal control has plenty of reasons for why their number is going up, I think it'd be better to have them present that to you themselves because there's just a lot of things that they have to tell you.

1:16:51So I wanted to touch a bit more on staffing because we talked about that earlier so we've had some real, significant challenges this year, particularly in the current calendar year.

1:17:00As you saw we have a number of vacant positions, some of those are non sworn positions, but most of those are sworn officer positions.

1:17:07Is impacted our response times we looked at the first four months of our current calendar year and saw that our response times to priority when incidents, these are you know.

1:17:17The the highest of high emergency calls increased by over two minutes we used to have a response time of about four minutes and some change on our response times are up beyond six minutes so.

1:17:29Every minute, can count when you're going to a priority one call and we've definitely seen some negative impacts based on our staff we went from having about five officers on street normally to having three officers on the street when we're lucky.

1:17:46is also impacts our major investigations last year at this time we had about eight detectives investigations.

1:17:52They were really doing a great job tackling the major investigations come across our desk.

1:17:57Right now we're down to three detectives and I can tell you they're absolutely swamped with the significant crimes that have been happening in our city this year.

1:18:05I mean they're absolutely swamps so it has been a significant staff toll, combined with the fact that they frequently work overtime to cover vacancies and patrol.

1:18:15Now something i'd like Council and financial Advisory Board members to consider is that when we go to hire a brand new police officer someone who's never been a police officer for.

1:18:26Paul Keith (Police Chief): The hiring process typically takes about two months after the hiring process, they have an academy period that lasts about six months.

1:18:33followed by a field training officer program that takes about another four months, so in all from the point that someone puts in their application and we start working on it.

1:18:43So when they actually hit the street as a solo police officer, it takes about a year of time to get them to that place.

1:18:51So anytime we see a police officer walk out the door, we know it will be at minimum one year before we see that position actually get replaced out on the street.

1:19:01And I want to talk a bit about our active recruitment, we have an active recruitment out right now for police officer and we're currently processing the recruitment, we have for record specialist.

1:19:11Now for a police officer right now we have about three people to select from that have put in applications.

1:19:18For record specialist we have about 80 So you can see, the dramatic difference between interest in the positions.

1:19:26And I can tell you across the board, the pool of people out there that want to be police officers is very small it's a very small pool.

1:19:35So it's essential that we retain as many of our employees as possible, because there are not replaced, so I want to talk a bit about retention efforts as well.

1:19:45So we've been talking about a lot of different options in the last six months about how to.

1:19:51create a sense of appreciation police department, how to have programs that help retain our officers there's quite a few options out there some cities, they decided to.

1:20:01do things like pay hero pay to employees of the city, not just police officers, but other employees of the city some cities have done that or conquered and claim they use arpa funds for that.

1:20:14Some cities that are faced with, please stabbing crisis have.

1:20:17done class and COMP studies and I know that that's something that's planned for this coming fiscal year I think it's something that's absolutely essential.

1:20:25Because we are in a very highly competitive market right in Elsa rainbow in the Bay area.

1:20:30we're surrounded by high pain departments that are in direct competition with us for the same not only the same people that want to become police officers, but our existing officers.

1:20:40see that they can go five miles away and make another $20,000 for doing the exact same work, or if it if it's some departments are doing much less work frankly.

1:20:53So.

1:20:54Our goal for this new year is to really make sure officers are feeling appreciated and that.

1:21:01and frankly that's my goal, basically, from now until I retire and I got other secondary goals, but my main goal is to make sure my cost feel appreciated for the next five to however many years I have left in the profession.

1:21:12So some of the things we've done this year is started a pilot program for gym memberships you partner with 24 hour fitness or officers.

1:21:18Have a place where they can take care of their physical fitness will also contribute to their mental fitness.

1:21:24And we started a pilot program for uniform cleaning services we're going to see how that works out on a six month basis.

1:21:30we're also undertaking some other recognition and appreciation efforts that really focus on Center in our our officers and our employees.

1:21:38It and recognizing the hard job that they do and how important they really are to our Community.

1:21:45So all of the recognition efforts we've started this year and the appreciation ever started this year cost less than what it would cost to hire and train one officer.

1:21:56It cost much less than that, so it doesn't cost a lot to have some programs to really express appreciation for our COPs.

1:22:05So that is my quick overview of the police department there's some numbers on the screen that i'm sure you can take a look and read and, if you want me to go and more detail later on, please let me know.

1:22:18Thank you, chief.

1:22:23Karen Pinkos (City Manager): Next up our public works department director event ortiz.

1:22:28Yvetteh Ortiz (Public Works Director): Good evening mayor Council members and family members, I am event of the Northeast the city's public works director, thank you for the opportunity tonight to provide you with a highlights of the Public Works department budget.

1:22:42I will keep this brief and just starting with our org chart.

1:22:46We have 25.2 positions.

1:22:50budgeted and the public works department two of those are in the engineering division, we have two primary divisions, the engineering division at City Hall.

1:22:59And the operations and environmental services division which operates out of the corporation yard and the recycling Center.

1:23:07So there's two engineering positions to department level positions, including me and management assistant and the remaining staff are in our operations and environmental services, which includes our maintenance workers are recycling drivers are.

1:23:20Our analysts and specialist.

1:23:24At mid year Council did approve one additional position and operations and environmental services division is the recycling driver it's fully funded by the integrated waste management fund and is.

1:23:36is intended to serve the new development occurring in the city.

1:23:42That position is currently bacon but we're interviewing for that position and hope to have it filled by the end of this fiscal year.

1:23:49The other position that is vacant is the senior engineer and engineering manager position, which just became bacon in early May and.

1:23:58We have that are coming out and it closes in early June it's a super competitive job market for engineers out there right now.

1:24:06And I know there's several contra Costa county public agencies that are recruiting for the exact same position, see Richmond is recruiting for tooth.

1:24:14At the same time, so we're keeping our fingers crossed that we get some good candidates and can fill that position sometime in the next fiscal year.

1:24:24Yvetteh Ortiz (Public Works Director): In terms of engineering staffing have we did have an position that was eliminated in fiscal year 2021.

1:24:31We over the next few months, we will be evaluating the staffing and engineering and because it has impacted.

1:24:38service levels, including longer response times for our encroachments helmets delivery capital projects and traffic evaluations that will come back to counsel with any requests that we.

1:24:53Think are necessary, I would do want to highlight one other thing here regarding the management analyst position.

1:25:01That position was vacant or part time for about three years and we were glad to report that we filled it in March Christina leered started and some of you have met her.

1:25:14And she.

1:25:16At mid year one of the things Council did at meteor was approved the partial funding of that position, using general fund so that that person could work on environmental and.

1:25:27Maintenance programs, and not just integrated waste management programs, one of our requests in the in this coming budget year is to fund that position at a 50% level from the general fund.

1:25:40So that that analysts can work on the update to the Climate Action Plan, which I know has been a priority for the city council.

1:25:50One other thing i'd like to.

1:25:53Well i'll leave it at that and then Oh, and one more thing in terms of staffing in the past that's not shown here we've had a part time maintenance worker.

1:26:04And that part time a maintenance worker was also laid off in fiscal year 2021 that position is important because it helped us with our wheat abatement efforts and we'd abatement over like other city easements like on mosher and other public paths.

1:26:22And we eliminated deposition and our maintenance crew picked up the slack basically, but at this point there's super stretch done and now.

1:26:31Now, focusing on increased efforts related to end and cleanups of encampments homeless encampment so we'd like to request that that position be restored and funded by the general fund.

1:26:44So.

1:26:45i'll leave it there for this slide and then, if you can, if you could go to the next slide.

1:26:53Okay, so in terms of what you see here we're showing revenues and expenses, where where we're requesting changes have over $50,000 just kind of highlighting of major.

1:27:07Yvetteh Ortiz (Public Works Director): changes and expenditures and revenues, one of the things that you'll see as I go through these line items.

1:27:14Is that we're trying to face back in general fund support for various maintenance and environmental services that were either eliminated reduced or budgeted in special funds.

1:27:26In order to relieve the general fund over the last couple years, but we need to request don't fund support for these services, because having these expenses be in the special funds is.

1:27:38not sustainable and so i'll go through the line items, one by one in terms of revenue our biggest revenue in in public works related to the general fund is for charges for services for review and issuance of both.

1:27:57Building up i'm sorry encouraging from it, as well as a review of building permits so we're estimating an increase of about $67,000 in those program fees, this is a very conservative estimate it's based on the last fiscal year 1920 and 21.

1:28:18So we are estimating $360,000.

1:28:22I guess that it's conservative because potentially there could be a slow down in development, which would reduce the number of permits were reviewing and issuing.

1:28:32And so I adopted amount, I mean the amended amount that you that was approved in March was actually 420 $7,000 of revenue and are actually have already hit that this amount, so you can see how the hundred and 60 is very conservative.

1:28:50In terms of line items.

1:28:53there's bar line items here three of them are the $50,000 change, but the first one, we included it's not $50,000 but we included because it's related to measure ah, this is a utility line item related to water he's a MED and and there's line item is increasing by about.

1:29:14By about $35,000 and this reflects an increase in East estimated increase.

1:29:20and East they might cost of about 30% across all departments, we did a reallocation of costs across departments, based on actions, so this ended up.

1:29:30An increase in this line item related to parks, but it also as we reallocated costs included shifting back the cost per water for the song Center from measure H back to the general fund.

1:29:44And the second line item is related or second set of light items under environmental services is related to the Climate Action Plan update.

1:29:54In addition to the analyst allocation we're also requesting $60,000 per consultant consultant services.

1:30:03And this is on the lower end that we have presented, that I had presented previously to you in February, during our department on presentation.

1:30:11On this assumes that the some of the climate adaptation components of the climate action plan can be done, as part of the safety element that Melanie men described earlier.

1:30:22There also includes $25,000 for a fellow to assist with public outreach and some of the inventories that needs to be done, as part of that.

1:30:33climate plan Climate Action Plan update the good news that I need to I need to report is that we did apply for a grant for the civic spark fellow and we haven't selected for that grant and we're currently in the process of reviewing the agreement.

1:30:48And also recruiting for us and expect below So if you see our city manager update from last week we're reaching out to the Community to apply for That said, expect below so with that week that person can come in.

1:31:00fall of 2022 and start helping us with these activities but hasn't been secured yet so that's why we're including where that request is still there.

1:31:12The last the next line item is related to one actually the largest line item in the general fund outside of personnel so not the largest non personnel item for public works is landscape maintenance.

1:31:27And this item is really all about restoring some some general fund support and addressing increased costs so so right now we're requesting an increase of about 220 $9,000 in this line item, and this includes restoring about $100,000.

1:31:50From the from measure he currently sits in measure he over the last couple years if it was moved to general to measure each to leave the general fund.

1:31:59But we'd like to reduce the cost and measure age, so that we can start saving up on balance and measure age to do some large projects at the swim Center and Chris Jones our recreation director can talk about that more um.

1:32:13let's see we also would like to request that $38,000 of general fund support be restored for building grounds maintenance and traffic island maintenance.

1:32:26contractors, this is again to offset some of the increase staff efforts on homeless encampments we if we use the contractors to do the building grounds maintenance, we can.

1:32:37focus on some of those of what had become basically monthly cleanup efforts and not just the cleanup efforts, but all the documentation and support services that come along with it.

1:32:49And then we're also requesting an increase of another $31,000 this is to maintain the existing park of the existing levels of park maintenance.

1:32:59We did a new request for proposals for park landscape maintenance contractors earlier this spring and heavy received cost proposals will be bringing that a contract to city council for your consideration at your second meeting in June.

1:33:15And the other two are costs are $10,000 there is additional irrigation repairs, especially given our drought conditions and then $50,000 $50,000 for increased investment in St Louis pruning to manage one of the city's bigger risks and made it to city trees.

1:33:34Finally, the last item is related to.

1:33:39A temporary staff services were requesting $100,000 additional budget in this line item to really address the backlog of permits that have resulted over the last year due to reduce staffing medical leaves make ambitious vacancies.

1:33:57and also to that we can focus on finally implementing a tracker, which is the online tree portal online permit portal of building has been able to implement on.

1:34:09Their portal, but then coach with permits are lagging currently that has to do with stock Toronto was a staff to Nova and technical difficulties, so we haven't really been able to put the focused energy on getting that online.

1:34:22That will definitely benefit us so that we can have utilities and other private contractors submit their permits online and that concludes my presentation, thank you for your time.

1:34:37Karen Pinkos (City Manager): Thank you event and, last but certainly not.

1:34:39least.

1:34:40Yvetteh Ortiz (Public Works Director): I promise.

1:34:41Karen Pinkos (City Manager): Our recreation director, the Director of fun Christopher Jones.

1:35:14Chris Jones (Recreation Director): kind of reorganized org chart.

1:35:18Which is budgeted for 18 positions.

1:35:23this year and next year, which is down about five positions for fiscal year 19.

1:35:30we've had to reorganize a little bit due to layoffs and resignations and so we're we're organized now into six different divisions.

1:35:38Aside from myself when you're seeing the the department and bugging my staff for last minute budget requests administration consists of mainly to Members who are responsible for activity registrations and customer service and they're now overseen by.

1:35:58The aquatic supervisor splits her time and helps oversee that process.

1:36:05We had to compensate for less folks in the office by relying as much as possible with online registration, which has really been successful kind of, with the exception of folks that don't typically use online.

1:36:23portals mainly our senior population but there's plenty of folks of all ages are comfortable with the technology we also have much reduced office hours to ensure that when we are open there's someone here to answer the phone respond to emails as well as ketchup on work.

1:36:46When we close.

1:36:48And so, in this division in particular it's really led to us being you know much more reactive.

1:36:55than I would like i'm sure most of you would like, we have to respond to certain situations as they happen, because we have less asked me for for real quality control process improvement and response times, especially now is we're entering our busiest season summer.

1:37:15and acquire next.

1:37:17Week, this is another area where we have reduced staffing, we lost a full time Assistant Supervisor, as well as we're kind of utilizing portion of the supervisor for admin.

1:37:31So this is this reality kind of means that certain programs at the pool.

1:37:38We have not been able to bring back yet and that's like our swim camp programs, as well as private pool.

1:37:44splash park Rentals.

1:37:47A big issue at swim Center and frankly all swim centers in this area of the state as well is it's been really difficult in terms of part time staff recruitment.

1:38:00and retention, I think a big part of this is because we lost over two years of lifeguard classes, so that kind of fresh fresh recruits were lacking on but with reduced staffing it's also difficult to.

1:38:16You know, to try to increase our recruitment activities, as well as as conduct additional like writing classes.

1:38:25Are adult programs and services division is responsible for basically all things adults, including senior services.

1:38:34i'm sure, as everyone is aware, because of our layoffs we weren't able to operate two separate offices to separate buildings, and so the midtown activity Center was closed.

1:38:45And we did transfer senior services to the Community Center, so we are so we're not necessarily the traditional senior Center, but we do offer a lot of senior services, including paratransit.

1:38:58lunch program support groups and various enrichment classes, but this division also responsible for more active adult classes sports enrichment, as well as overseeing facility Rentals at the Community Center club classes and picks up picnic sites.

1:39:19Community Center rental Rentals in general or something that we're lagging a little bit on as well it's been hard for us to.

1:39:27I guess we're experiencing growing pains and some things have to get and one thing that we're hoping to get to sooner than later, would be reintroducing Rentals at the Community Center as well as expanding our clubhouse Rentals.

1:39:43and

1:39:45Moving on citywide custodial oh sorry i'm not done with all my decisions are sitting like to study on facilities.

1:39:54This division is actually overseen by supervisor in the adult division responsible for all citywide custodial including non recreation buildings.

1:40:09Here we are down.

1:40:13One full time staff which we're back going a little bit with.

1:40:18A contractor but we're also down to part time staff which.

1:40:24which really has impacted the our crews ability to do special projects do deep cleaning, as well as our ability that when we do rent out the Community Center again.

1:40:36it's very, very difficult for us to do it, both on Saturday and Sunday.

1:40:42If the demand exists.

1:40:47In our community services division this stamp here is responsible for youth and family programs youth specialty camps and finances summer, especially camps and field and sports court rental.

1:41:01This division has also taken on the added responsibilities of marketing, including our activity guides website and social media.

1:41:12And so, since they're having to kind of do more they're doing more administrative tasks, and this is really going to impact the flexibility for us to respond to new trends or bring on new programs at the last minute or.

1:41:29restart new things because we're just not able to react quickly anymore.

1:41:35and childcare, this is our.

1:41:38largest division with probably the most straightforward responsibilities they do preschool at school age pair programming, so all the elementary schools in town, as well as our staff lead summer camps.

1:41:52And here we have similar to the swim Center hiring and retention of part time staff is difficult, you know, right now, because everyone is struggling to hire people, you can go work at mcdonald's or more than we pay for some of our positions here.

1:42:12So.

1:42:13Hopefully that will stabilize but that's kind of what we're facing right now, and so we are relying a little bit because we have mandated state ratios, we are learning on temporary staffing agencies, which are more expensive than our own staff.

1:42:31And then just for obvious reasons kind of one undercurrent that still pervades throughout the department is.

1:42:40All of the.

1:42:45oversight responsibilities related to government and certainly much less reduced, but we still have plenty of notifications going on plenty of policies to update and this really takes a big chunk of SAS time still.

1:43:02OK, and now moving to the next slide Thank you.

1:43:06So, in terms of major budget assumptions I just would put out there, that in the recreation department similar to Community development, we need to align our program revenue with increases in programs services and expenditures so.

1:43:25Our proposed budget this year really only includes major expense increases that are associated with anticipated revenue growth and not much extra.

1:43:37and

1:43:39let's see so.

1:43:45At the.

1:43:47swim Center.

1:43:50Both at the sun Center and and.

1:43:54Youth services we're looking at increase in revenue, mainly because.

1:44:01Summer 2023 is going to be like a completely quote unquote normal year we're seeing.

1:44:07enrollments returned to pre pandemic levels and so now that we have swim lessons and adult listen programs, at the very beginning of fiscal year 23 as well as hopefully at the end of fiscal year 23.

1:44:23We anticipate growth and swim lessons as well as an our summer specialty camps and so those are the main reasons or increases there.

1:44:33And then, in terms of childcare Madeira is our biggest site, by far, if we have you know another another 234 classrooms we could probably fill them up there and there's a lot of.

1:44:49You know both parents working in the households there so we're seeing a significant revenue increase and medallia, but it really is aligned with what we're projecting kind of end up this year.

1:45:01And so we feel is a conservative estimate because it's based on the structure of this year, and not the 4% increase next year, so that's kind of how we built in a little bit of cushion.

1:45:14there.

1:45:16And then the next slide.

1:45:22Okay, so in terms of expenditures we're looking at roughly $30,000 increase the $55,000 for costs associated with publishing our activity guides publishing and mailing are our activity guides.

1:45:40we've streamlined these documents, to make them less costly moving forward, but when we're offering so many new programs and our capacity is much higher, the best way to fill those spots, is to make sure people know about that and we still believe that.

1:46:00The activity guide is really the way to grab the attention of folks that maybe.

1:46:05Maybe didn't even occur to them to be like Oh, I wonder if Australia has recreation department, let me log on to the website and see what they have to offer it will be just kind of like right in their face.

1:46:14And I know that sounds kind of crazy, but we still have people that will come to the pool and say like you know I lived here for 12 years and I had no idea this place existed, so I think published guides are still important and help drive enrollment and revenue.

1:46:33Adult services and you services, these are increases that are aligned with increase in revenue so it's really are independent contractors.

1:46:46Who generally have a 6040 split with them the contractor get 60% of the revenue, the city gets 40% of the revenue.

1:46:54And so, this is the the expense side is just associated with increased activity increase revenue and therefore we have contractors and adult in the services more money, but, that being said, if the.

1:47:10enrollment doesn't materialize than.

1:47:14That expense will materialize either.

1:47:18And then, at the swim Center what event was alluding to is that we're seeing you know pretty substantial increase in our utility costs, mainly due to the fact that we're trying to relieve measure H of what we were calling gentle fun backfill.

1:47:37And that is because we know looming on the horizon we're going to have to reese we're planning on resurfacing are small cool.

1:47:46Next, fiscal year very soon we're going to have to resurface are large and that could cost close to a million dollars, and so we have to start building a fund balance.

1:47:59In order to be able to pay for that 234 years down down the road and so part of that effort is is removing some of the utility costs or measure, as well as the landscape maintenance costs.

1:48:13or metric.

1:48:17Chris Jones (Recreation Director): And then finally in childcare.

1:48:21Chris Jones (Recreation Director): These costs are really associated with increased enrollment as well as removal help order restrictions, so now that help order restrictions are less, we have to provide.

1:48:36A snack, for example in the program so it's required by the state of California that was suspended during the during the pandemic.

1:48:44If we want kids to come into our camps, especially the older kids We really have to be competitive and offer field trips and those were not really possible during the endemic.

1:48:55But they are in, and then just in general with higher enrollment we need more slides and so that's really the main driver.

1:49:04There, and it is offset by increased revenues so that's that's what I have now and look forward to any questions you may go Thank you.

1:49:15Karen Pinkos (City Manager): Great Thank you to all of our department directors and we will all they will all be here for questions, following the presentation, which is almost concluded, thank you all for hanging in there.

1:49:28Okay, so this last slide is a slide that is presenting an idea to the city council that we haven't had to contend with over the past few years, because we haven't had a general fund balance to speak of.

1:49:45But I do want to point out that several of the items that the department's shared with you are one time projects, so there are additional funding options.

1:49:57or there's an additional funding option that the Council could consider, and this is completely up to the city council, but we wanted to.

1:50:05bring this as an option or an idea for the Council to consider particularly because our general fund balance was enhanced, as you know, by arpa funding and federal funding and so to sort of meet some of the spirit of that funding.

1:50:20What we could do what the City Council could consider of all of those projects that you saw that were one time expenditures the class and COMP study technology upgrades.

1:50:31Infrastructure, considering the LCD Bart library project, the safety element, the Climate Action Plan Those are all planned to be budgeted within the revenues that you saw within that first.

1:50:44Karen Pinkos (City Manager): chart that you saw for the revenues expenditures how ever the City Council could choose to find these one time projects using some general fund balance the theory behind, that being that.

1:50:56These are one time funds that we received, particularly from the Federal Government that we could use for one time projects.

1:51:04It would allow, then the revenues that you saw would be used mainly for ongoing expenses, there will be more one time projects and there are particularly some capital projects.

1:51:14That we could also consider as well, and again this is completely an option, but if the if.

1:51:22The Council could choose to fund some of the one time projects with general fund balance again, it would meet the spirit of arpa for general government services infrastructure technology coven 19 related expenses.

1:51:38The fiscal year general fund balances, we noted earlier is about.

1:51:43$7 million which will increase by about you know 3.5 million by the end of this year, at least.

1:51:52And so again, this is completely an option for the Council to consider this does not have to be a decision made this evening, either.

1:52:00But I we open it up for discussion because, again, now that we do have a fund balance and we do have several one time projects, the Council could consider allocating.

1:52:10A a an amount to be determined that could cover, or at least part of these, which would then.

1:52:18enhance the revenues that we showed you and on the first slide and then would increase the potential surplus at the end of the year so again, this is an option.

1:52:28Some of the things that we are considering, we may bring to you for a request for allocations, such as some of the capital projects.

1:52:36that we need to take a look at some of the maintenance projects, the deferred maintenance projects for our buildings City Hall book safety building those types of things.

1:52:44which you all know, are pending, but I just wanted to share this with the City Council as an option again because, with that fund balance, I know that we want to maintain as high a fund balance as possible, but this is something that the Council certainly could consider.

1:53:02And with that that actually.

1:53:05concludes the presentation, so the next steps, just for your information will be that over this next week and pending any sort of direction or discussion tonight.

1:53:15we're going to continue to finalize the budget numbers, I had shared with you that we did have a bit of a technical glitch with our financial system, which has been completely fixed.

1:53:25So we're back on track, but we're working diligently on finalizing all of those numbers.

1:53:31The proposed budget book will be to the city council on fat by the end of next week, the next City Council meeting will be the first budget hearing and the presentation of the detailed.

1:53:41proposed budget all funds, and then the FAB is going to have a special meeting on June 16 which is Thursday to review the budget so that, if they have any recommendations to bring back to the Council and then June 21 would be the first opportunity for the city council to hold.

1:54:00told an additional budget hearing to consider adoption, of course, if there are additional Council meetings as needed or, as requested by the City Council that is absolutely.

1:54:13Up to the city council to schedule that's what we did last year we were eight we rescheduled at least one additional meeting to continue the discussions.

1:54:21So that is up to the Council, but the approval of the proposed budget does need to be done by June 30 2021.

1:54:29So I will continue to share my screen with that your honor city council and FAB, thank you for sitting through this presentation, I want to thank all of the departments.

1:54:38who have worked really hard on putting starting to put all this together, I know that departments were pleased to be able to share their information with you certainly want to give a huge shout out to Sandra who has been.

1:54:50Just a wonderful addition to our team and has really helped us out so with that.

1:54:56Mr Mayor I turn it back over to you.

1:54:58Mayor Quinto: Okay, very good, I also want to congratulate your staff, well done appreciate this thorough look on things that are happening and i'm excited to.

1:55:12Work with my fellow Council members and with the FAB.

1:55:19Committee to make sure that we do this, and we do this right so let's bring this to the Council first and and let's see with our city council has any questions city council.

1:55:39let's um let's bring this back to get Council member fidelity go ahead, go first.

1:55:47Councilmember Fadelli: Thank you, I was trying to wait to see if anyone else would go first um it's great to see the FAB with us.

1:55:55it's great to have a full debriefing I love the general lean and meanness of this budget, and our city finances at this point, many of my questions were answered so i'm going to try to be very quick and brief here, so we can leave and get cooler and do other things.

1:56:16So I was just the first part about the.

1:56:21See projection for the real property transfer tax is still pretty high for potential recession or inflation 4,300,000 i'm not really asking a question, but just something that.

1:56:36We really probably need to watch, I just wanted to ask Sandra you still think that's a conservative estimate based on on house transactions that are going on and Elsa rainbow Is that correct.

1:56:50Sandra Dalida (Finance Director/Treasurer): At this point I believe it's a very viable number, I do think that we should watch carefully, I also think that, since we know the other categories of property taxes are locked in.

1:57:06Because we're a teeter organism to part of the teeter county I think that we could start that way but there's always room for negotiation, even though we're at 4.5 currently year to date.

1:57:17For our 521 22 for transfer tax, we can always you know, bring it down a bit and come back eight years so whenever the council's pleasure is.

1:57:28Councilmember Fadelli: Well, certainly good to have that to work with going forward um my next couple questions just just about police, so I called Keith.

1:57:38I know that the mayor has mentioned sorrows and i've with recent actions that we've been having you are not planning to budget an sro or are we waiting for the school district to respond or.

1:57:54What is the status of going forward for the city and an sro.

1:57:58Paul Keith (Police Chief): Well, I think we're waiting for the school districts to come forward and say that they want to revitalize the program if they do that's definitely something that will come before you.

1:58:09It may be that you know, an sro might go in there on emergency basis until we get the position fully back up and running, basically an assigned officer.

1:58:19But if they come forward and want to have a contract for school resource officers, that will come before Council so they haven't yet approached us if they do it'll come to you.

1:58:29Councilmember Fadelli: Thank you, and you did mention the animal control issue which I know the city of Richmond just dealt with and will be dealing with we've all gotten a big increase on that and will that be coming to us soon city manager America yes.

1:58:42Okay, the so to review that and to ask why certain things are not on the list of what they're doing will be covered.

1:58:48Councilmember Fadelli: Yes, okay um and chief the three vehicles little vehicles, you have is that.

1:58:55So, for the last two years minus the one from last year it's a total of five new vehicles for the police department.

1:59:02Paul Keith (Police Chief): It is and you'd be surprised how hard it is to actually get possession of a vehicle the two cars that we had come in, it took about eight months for them to get here.

1:59:14And our current order with Ford looks like we're probably about six months out to have any replacements coming in, so it's definitely a challenge to get those got some vehicles that do need to be replaced so.

1:59:27Councilmember Fadelli: Well, and you've always mentioned that that's part of retention is with the way our public safety, building is having nice vehicles as a way to maintain our police force.

1:59:37Paul Keith (Police Chief): The vehicles really do service our officers offices it's where they spend most of their time so having them be well equipped and well maintained really is important for that okay.

1:59:49Councilmember Fadelli: And really just a comment i'm really glad about the climate action plan, having some money coming in to help us get that done to move that forward.

1:59:58and

1:59:59And I think another just another comment is with public works and recreation trying to put money back in measure ah, so we can focus on the necessary.

2:00:13pool accommodations and that whole areas where the money should be going I think we're back at the point where we can afford maybe some landscaping.

2:00:22Costs outside of measure age, which are our folks our residents voted for you know parks and the pool area so i'm glad that money's coming back and.

2:00:35We haven't mentioned the senior Center is.

2:00:39Is that something that the Council is going to have to deal with in a long term basis, going forward is that correct because we still with covert can't deal with reopening and our trailer situation is closing up.

2:00:55Who might answer that Okay, Chris.

2:00:59Chris Jones (Recreation Director): Well, I don't think it's accurate to say that we can't reopen midtown activities in a week, we can, according to code and restrictions, but we don't have the resources to do so.

2:01:11Oh that's why men are also about resources.

2:01:14Councilmember Fadelli: You know that's yeah Okay, but but long term, we need to think about what the future is for senior Center if if and when a library, etc.

2:01:26And again i'm happy about transportation staffer and library systems for the city manager, thank you very much, all will deal with future issues.

2:01:36Mayor Quinto: mayor pro tem book yama.

2:01:41Mayor Pro Tem Motoyama (she/her): Thank you mayor and I really want to thank staff and all the departments for all the work that you've put into to making this really, really clear and kind of really bringing to the for a lot of different issues so i'm.

2:01:57Just kind of going back to kind of the biggest picture issue is, as we go forward, I would really like to better understand all the assumptions.

2:02:10In the Budget, particularly for the 10 year projections it's really helpful to have that bigger picture when to test kind of how how we're going with changes in the budget, so I would like to see that.

2:02:27One of the things that was kind of touched upon, but I would like to get a better sense of is the impact of potentially slowing down all the development work so that does rippled through multiple departments so planning public works by and check, you know.

2:02:46fire and you know it's going to you know, increasing development has added burdens, but also if the development doesn't materialize it seems like that's going to ripple through lots of parts of our budget, so I would like to see that tested in our budget as well.

2:03:09I would like to get more clarity on the impact of the end of using measure H as backfill for general funds, I think you know I totally understand that that's what we needed to do, and we need to restore those funds back to.

2:03:25doing important work for repairing the poor, but I just want to understand you know, in the aggregate how much that is that we're putting back.

2:03:36towards the general fund, because it's showing up in different parts of the budget and also.

2:03:42In thinking of kind of backfill you know the consideration of using up the fund balance the arpa funds.

2:03:50For those one time expenses is also kind of like the general fund backfill, so I would like to get a sense from staff, whether you know there's a certain.

2:04:00You know, ongoing this to that you know it's one time but we're going to be expecting a certain number of one time projects going forward, is this really just one time one time or what is really the the.

2:04:15burden that we need to add into the general fund in order to have ongoing projects done so, I would like to get a sense of the scope of that.

2:04:25And no kind of a little bit of history to so that we can look at it, as we go forward year to year, to be able to assess how much of that we can do if we don't have.

2:04:36The arpa in again this is, you know one time that's one time, money, so it can compare that to what we're expecting in the future.

2:04:47I would like to.

2:04:50kind of understand how some of the choices that we're making in the budget now kind of go back to things like the Climate Action Plan sorry chiefs to talk about your patrol cars, all the time, but.

2:05:03I like to understand if those are going to be hybrid vehicles or they're going to need more energy efficient and anyway, I know those Ford.

2:05:11escapes do come in hybrid so can we make sure that any additional vehicles that were purchasing are going to be a little bit more climate friendly as much as possible.

2:05:25And then will this PowerPoint be posted can we get copies of it and then one smaller but important thing.

2:05:35In the draft preliminary budget, I noticed that the.

2:05:41totals of the.

2:05:44fiscal year 2021 22 did not match up with the khafre and I wanted to understand why that was so anybody can answer me y'all can ignore me, but I would like to get answers before we get too much further in our budget process.

2:06:04Karen Pinkos (City Manager): And you start over we have people available to to answer all your questions when I was starting to write them down and I wasn't sure if you wanted us to answer as you're going or not um.

2:06:16I think you had started off with some of the projections correct.

2:06:20Mayor Pro Tem Motoyama (she/her): mm hmm.

2:06:21Karen Pinkos (City Manager): Okay, so as insane or you can jump in on this to to consider some of the assumptions and this will, this will change slightly, and we will have more definitive numbers, of course, once the budget numbers are finalized but.

2:06:35Generally speaking, what we've built into this model and Sandra can you can jump in on this, but what what was built into this model.

2:06:44Were assumptions of using the current budget that we have using the proposed numbers that we are looking at right now with the revenues again being rather solid the expenditures might might.

2:06:57change a bit, but assuming again the 3% essentially cost increases for personnel and staff.

2:07:05The model also assumes all of the pension costs so that does we go straight to the cow our calipers website and our actual aerial report.

2:07:14We programmed in that number so that number is all included So these are fully loaded staff, as you know, staff is 75% of our budget, so this line is mostly people.

2:07:26And so, all of that is completely built in we take as much assumptions, as we can, knowing that we do have negotiations are happening for a couple of our bargaining units.

2:07:35But right now we have pretty much about half our staff, if you assume a 3% cola for the managers.

2:07:41that's all that's essentially where we're at and so again with some little fluctuations, that is what this model certainly includes.

2:07:50And Sandra I don't know if you have any additional thoughts about some of the assumptions, it does not include it, I think it includes a small assumption for cannabis, but certainly not because we can't really trend that.

2:08:02What we had worked with our I want to say and Melanie you can text me if i'm wrong, I want to say that we were sort of.

2:08:08Anticipating about a three, which is conservative again about $300,000 a year increase.

2:08:15Because of that so that's again very modest that's built in to this model but that's all going to change once we start actually getting real receipts and trends.

2:08:24And when both businesses are open, this does not include and actually to tag onto your question about development.

2:08:32You know, as Melanie reference, that is why we don't anticipate and budget for.

2:08:38Those big projects because we don't want to say all right well cool we're going to get $500,000 from this big old project, and then it doesn't materialize and that has happened to us in the past and so we've we've.

2:08:50we've refrained from doing that to make sure that the budget that we have is is based on our standard trends and remodels and building permits that we get every single year.

2:09:02But without any big projects, and we have a big project that needs a big adjustment that we can come back to the Council and do that so so that is the Those sort of answer a couple of those questions and Sandra I don't know if you had anything to add on that one.

2:09:16Sandra Dalida (Finance Director/Treasurer): The only other thing that I would add, is next time I will provide a little more background and a legend for some of the assumptions that are included.

2:09:25For the 3%, for example, the percent of fica is calculated on the increase, the increase for the portion of medicare is included in there, the.

2:09:37increase for life insurance long term disability dental medical, as well as the information that we received from the medical and dental providers for the rate increase.

2:09:49Also included in that is the longevity the percent share of longevity increase, so I will provide because there's a lot of factors that I included.

2:10:00To make sure that I could get this as as accurate as possible to avoid any any hiccups in the projection and you asked a question about the.

2:10:11Actual and I think you were referring to fyi 2021 urine balance that's reflected knack for.

2:10:18We haven't, yet we haven't gotten to the end 22 yet I compared amended to amanda I thought it would give you a better comparison in the future, I will I can add the column for a year and actions for action, so I can give you both.

2:10:34Mayor Pro Tem Motoyama (she/her): Okay, and as a just a small request, can you include the percentage of increase from.

2:10:41The 2021 22 budget to the draft or preliminary budget so we can see kind of percentages down the column, and just it'll help us flag anything that we should ask you about if there's you know different percentages for different line items.

2:10:57Absolutely grateful.

2:10:59Absolutely.

2:11:01Karen Pinkos (City Manager): um.

2:11:03You had a question about hybrid vehicles, and I can see if the if the chief has thoughts on that you know I, I know that.

2:11:11we're certainly attempting to do what we can to make sure that our vehicles are as environmentally conscious as possible.

2:11:20I don't know chief if you have thoughts on that because kind of in the same way that that some of the you know some of our vehicles that a lot of traction and so.

2:11:29Sometimes the technology doesn't keep up with that, but we can look to have as clean of as energy as possible, but she felt let you try that one.

2:11:39Paul Keith (Police Chief): For recently released a hybrid engine for its police interceptor, which is the same style of vehicle that we use, I have to say I do get a bit suspicious about brand new engines from Ford.

2:11:53When they introduced the new turbo engine, I think one of those got pretty much immediately destroyed, to the tune of like $8,000 for to replace it.

2:12:02So I would like to see at least a year and not be you know, on the very first model year for a hybrid engine before we jump into it, I know Albany is I think ordering to hybrids.

2:12:13i'm going to also check around and see what other chiefs have already taken you know, taking possession of some hybrids to see.

2:12:20How they're holding up, I just want to make sure that we're you know it's really critical to keep our cars operational I don't want to spend a bunch of time in the shop and.

2:12:27that's my love hate relationship with police car manufacturers, I do love cars, they weren't great when they work, and when they're broken I hate their bets so anyway.

2:12:36Karen Pinkos (City Manager): i'll ignore the board the Ford knock their chief, but it is true, being from Detroit you never buy a first level year you learn that, as a child okay so.

2:12:47Mayor Pro Tem Motoyama (she/her): Just with that I just want to you know I know that.

2:12:51With the.

2:12:53We have kind of a chicken the egg issue where we have a fueling station.

2:12:58We can't switch it over to like renewable diesel, for example, until all the vehicles switch over the vehicles don't switch over because we don't have the feeling capacity for it, so you know, I think.

2:13:11You know, it does concern me that we kind of go Oh, we tried and then keep going so for not just i'm not picking on the police vehicles, but all of our vehicle so if there's some way that we can kind of.

2:13:26make a policy and stick to it, so that we can make this transition, I think it will you know, save us money in the long term and and I think it's an important thing for us to do.

2:13:39Karen Pinkos (City Manager): Climate Action yeah that certain that is certainly our intent, it is, it is definitely a balance between making sure we have vehicles that work that we can easily maintain.

2:13:48That handle our topography with making sure there is environmentally clean as possible, that is, that is clearly the balance.

2:13:55As you've heard you know, last week with with recycling trucks and everything that is it's our desire and it's our desires to do it as soon as we can that's for sure it's just sometimes the technology needs to keep up.

2:14:07Paul Keith (Police Chief): And all electric vehicle from major mouth manufacturer is inevitable we're going to have police vehicles that are all electric.

2:14:15At some point in the future, and probably near future as opposed to distant future, so that is coming, I think that.

2:14:20The hybrid version of the Ford explorer it saves about five gallon five miles per gallon so you get about five more miles per gallon compared to the standard engine that we get.

2:14:31Which is something.

2:14:32yeah.

2:14:33Mayor Pro Tem Motoyama (she/her): Thank you.

2:14:36Karen Pinkos (City Manager): And, did you have other i'm sorry what your other questions or.

2:14:41Mayor Pro Tem Motoyama (she/her): It was about the backfill of the general and measure ah.

2:14:45Karen Pinkos (City Manager): So, Chris or is that actually maybe Chris why don't you start with this one.

2:14:51Chris Jones (Recreation Director): And I can answer that so that was proposed is about 130 $2,000.

2:14:57Approximately $100,000 in landscape maintenance and $32,000 in.

2:15:06water utilities Center.

2:15:11Karen Pinkos (City Manager): Yes, and, and again I actually councilmember fidelity referenced it, you know we we definitely were appreciative to be a you know all of the expenses that measure he paid for the last you know, two years.

2:15:23are totally eligible, so we have no qualms about that, but there's no question that we do want to start to build that back because measure age, as you know.

2:15:32You know, relies on looking at our master plan, some of the more bigger repairs for capital, eventually, we would like to try to bond off of measure H, which once we.

2:15:43Again that's going to all you know once our bond rating is improved, and our fund fund balances improve those are things that we can start with, and we have staff to manage these things that'll be what we look at in the future so we're not going fully what we.

2:15:58What we have done in the past several years that we have backfill a bit for the general fund we're not going completely back.

2:16:05we're starting to wean off, if you will, over these next couple of fiscal year so it's not a huge shock to the system but.

2:16:10But again, that it's you know we're what we're wanting to make sure that that you know we we don't want we want some of those projects to start to happen and we don't want it once we can start to get that ball rolling, we want to be ready for that.

2:16:26Mayor Pro Tem Motoyama (she/her): Is there additional backfill and under public works that go into the hundred and 32,000 or is it just the hundred 32,000 yes.

2:16:35Chris Jones (Recreation Director): that's for the whole phone so.

2:16:38Generally public works and utilities is revelation.

2:16:43Mayor Pro Tem Motoyama (she/her): Thank you.

2:16:44Chris Jones (Recreation Director): Thank you.

2:16:45Mayor Quinto: Okay councilmember redneck.

2:16:49Councilmember Rudnick (she/her): Thank you mayor, I appreciate the work of staff for this.

2:16:54It was a great presentation, I appreciate the questions that the mayor pro tem that councilmember fidelity asked i'll keep my I have two very quick questions, because then, I want to make sure that the mayor and members of FAB.

2:17:06And counselor were able Center able to ask, as well, so for PD under administration are the psychological services for our staff, or is it for detective work.

2:17:21Paul Keith (Police Chief): The psychological services group is for our staff.

2:17:24Councilmember Rudnick (she/her): Okay, so it's like a gap type.

2:17:27Paul Keith (Police Chief): Yes, it's like a police focused AAP.

2:17:31Type service.

2:17:33Karen Pinkos (City Manager): yeah we.

2:17:34Do have any.

2:17:35city wide gap, but this would be specifically for p.

2:17:38Paul Keith (Police Chief): We use this group for police related critical incident debriefs and then, of course I normally ap.

2:17:45package is there for any other thing that the police officers might need to use.

2:17:50Councilmember Rudnick (she/her): Excellent Thank you that was my only question for that and then my second question is for public works for a direct ortiz for the increased tree pruning are we contracting out are we doing that in house.

2:18:05Yvetteh Ortiz (Public Works Director): Yes, we contract out all our tree pruning services, except for some minor urgent items that our staff does most the tree printing itself is contracted out.

2:18:15Councilmember Rudnick (she/her): And is that priority list set by your office or how does it work for priorities on which trees are getting proved.

2:18:23Yvetteh Ortiz (Public Works Director): it's established by our city arborist our our environmental programs manager and we have an inventory of city trees and he prioritises based on the the the the risk in terms of the street type and the and the type of tree that tends to be problematic.

2:18:44Councilmember Rudnick (she/her): But thanks, those are really questions.

2:18:46Yvetteh Ortiz (Public Works Director): Thank you and.

2:18:47Karen Pinkos (City Manager): And i'll give an extra shout out to Stephen pray who's our our our city arborist and environmental programs manager.

2:18:54For this I mean one of the things that I used to sit currently our assistant city manager sits on our municipal pooling authority Board, which is our risk management operation, and I used to sit on that, and one of the things that.

2:19:08That really matters and risk management is things like trees and with the route that has really impacted how trees have been.

2:19:16You know dying or or limbs that have been falling and the last thing we want, of course, is anybody to get hurt and we've had some near misses and some falling on cars, which is much easier to.

2:19:27to file a claim for then then someone getting hurt and so making sure that we continue that street inventory and the tree pruning is is, it is an expense well, in my opinion and expense well well paid because the risk to our safety is is much greater.

2:19:44So thank you for that question.

2:19:47Mayor Quinto: Okay, great um let's councilmember able said, you have any questions for.

2:19:53Councilmember Abelson: Our scouting or have a question or comment, and there was a teaser in the list you might say, in the presentation about well, we could.

2:20:04These are all one time things, it was the list of one time things that and then it was presented right next to the list of how much money we had, and so I.

2:20:19I have a favorite one on that list, but I think the important issue at this point is really to say what is my attitude towards having a list and using.

2:20:33Our reserves on one time items, and I think that, where I stand on it is somewhere in the middle, that is to say, I don't want to just say oh we've got all this.

2:20:47One time, money and then, what can we spend it on and then sort of almost look around for things to spend it on the other approach would be to say.

2:20:58This is where it really make sense to do it, but we don't want to really use up all that one time.

2:21:06Money on these things, unless it's a really good purpose and that's kind of what I would like to see us do I don't think we should try to spend it all.

2:21:20On principle, I think that, actually, I think we if we want to spend it on something.

2:21:28that it should be the things that are really.

2:21:32hard to fund that are one time things that we were but, but things at the same time we there are things that we really want or need.

2:21:44So there were that made me think about some things that were not on that list and and probably because they're too big for the list, but one of them is.

2:21:55Where does the general plan update fit into the universe of things here, could you.

2:22:02Councilmember Abelson: that's.

2:22:02Karen Pinkos (City Manager): that's a question in general plan update yeah that's got that we haven't that is that's on our our to do list.

2:22:10Councilmember Abelson: That is not included yeah I know I mean I know if I didn't sit here.

2:22:14Karen Pinkos (City Manager): Okay, great.

2:22:15Councilmember Abelson: Do you see it being on our list of maybe we ought to do it now for the next five years, say.

2:22:23Karen Pinkos (City Manager): yeah that the general plan every is the one thing in our previous strategic plan goals and objectives that we have not been able to accomplish in the original timeframe, so that is certainly something that is.

2:22:35Again, that has been a matter of priority, obviously, these last two years, but you're.

2:22:39Absolutely right the general plan, the full general plan doesn't need to be updated so that is.

2:22:44But, and that is incredibly expensive one as well.

2:22:47Councilmember Abelson: Right yeah but So where do you what, what do you see really happening with that, as a result.

2:22:53Women, a good place.

2:22:55Karen Pinkos (City Manager): yeah if Melanie wants to if Melanie wants to try to chime in on that if she has any thoughts on that, but at this point, you know again we're not planning that for this fiscal year but.

2:23:06Karen Pinkos (City Manager): If we are able to eventually update our strategic plan, I think that that certainly would be one of our our priorities within the next you know I would say five year window, but I don't know Melanie if you have thoughts on that particularly with what's happening at the state level.

2:23:19Melanie Mintz (Community Development Director): yeah so we do talk about it a lot internally and, as you know, councilmember ableton ideally, you would have.

2:23:27A big effort, so our general plan just for those that don't know was last updated in 1999 comprehensively and they usually are 20 year general plan.

2:23:37We do find.

2:23:42there's ways in which it still serves us and there's ways that that it's getting a little more challenging to base findings on it.

2:23:51One of the things that's happened, obviously the housing element is underway, and that is one that we did get grant funding for, and that is required every eight years.

2:24:00The safety element is now required and so it's something that i'm not so we've been having to do with kind of on this piece meal basis.

2:24:07In the past, the real area of change was really the specific plan, and when we did adopt the specific plan, we did have to do a general plan amendment.

2:24:15And you can see that in your annual general plan report so like Karen said, it is a lot of it it's two things it's both a big budget item, and it would be a big Community effort really to talk and as can also mentioned a lot of the housing laws are definitely.

2:24:30coming in a way that they might be creating change in neighborhoods outside of the specific plan area to like sb nine, for example.

2:24:37So it is that we would like to do, and we can keep you know Sean and I we struggled to kind of put together a budget that is somewhat.

2:24:46What is kind of the minimum that we could do if we wanted to take a full look and then What would it look like as a full blown and we know that there's a lot of elements that that the Community might want.

2:24:55So that's kind of a long answer to say that we are do struggle, so we do think it would be around 800 you know it's when we looked at it, a few years ago it's a minimum of 600 $700,000 it's a lot and so.

2:25:09You know, we could have a maybe when the general plan progress report comes out next year, we could maybe have a conversation about what would an update look like, how could we scope it.

2:25:20And then, how could we potentially fund it do we add a fee how long would it take us if we added a fee like a general plan fee.

2:25:29To every permit what could you do that, in a way that isn't adding too much burden on permits but raises money, so we could maybe.

2:25:37city manager I haven't talked about this that that would be one approach to talking about it, but the when we do our general plan annual progress report, maybe look at like you know what is it causing not having it updated and what are some approaches to getting it updated.

2:25:49Councilmember Abelson: And, with the specific plan update what's the status of them.

2:25:55Melanie Mintz (Community Development Director): How we are desperately so again we're down to two and planning and, as you saw we haven't stopped being more busy than in it in any year historically.

2:26:05So we should be releasing it Sean my text me he was going to talk to our consultants, today, we hope, still to get it without within the next couple of weeks, our.

2:26:13Draft and then it's out for a 45 day review period during that time.

2:26:18So, during that time, we will have a public hearing at the planning Commission and I think we might be planning a study session planning hearing, maybe joint with both you and the planning Commission.

2:26:29That we would take comments we would make any adjustments and try to get it back to you, hopefully, by the end of summer.

2:26:35Councilmember Abelson: Okay, so you so it might actually come to a conclusion.

2:26:41At.

2:26:42Councilmember Abelson: This I mean this calendar year.

2:26:44Melanie Mintz (Community Development Director): yeah it would definitely it will it will come to conclusion.

2:26:48Councilmember Abelson: And then, once that happens.

2:26:51Do we expect that will have an impact on that four year cycle from the time you adopt a plan until you actually have units in the ground.

2:27:03Melanie Mintz (Community Development Director): You know I think we're much more impacted right now impacted right now by everything from all the housing law, so you know we were really got out of the gate.

2:27:10Early, and so there was an advantage to coming here because we have this great plan, but now the state basically mandates and even more streamlined system for for other cities, who were were renter higher so if they the feasibility is.

2:27:23So we're struggling with some usability issues.

2:27:25And so, no I don't think so, though I don't think well the one big project, obviously, that will be covered is the Bart project as a part of this specific plan update.

2:27:32But we also have other projects kind of queuing some entitlements are ending, so I don't think I think any gap is not related to our update at this point it's more related to feasibility and overall escalating construction costs.

2:27:46Okay, and we do I mean we have a couple projects still for that you know from this cycle that we still expected to come in for building permit next year we're.

2:27:55I think, but we have seen a slowdown in new project applications lately.

2:28:01Councilmember Abelson: Okay, and then I I actually thought I remembered that.

2:28:09Bart doesn't have we don't have control over Bart construction like we do over.

2:28:16A call it private construction.

2:28:18Melanie Mintz (Community Development Director): yeah it's.

2:28:19it's not like this little district so it's not that that's especially so Bart does defer to the city's objective standards it's quite complicated and we might be more discussion to the entitlement remember.

2:28:32is involved, and which also invokes SP 35 on this project, so the entitlement is a very interesting process, but it will be using our.

2:28:44You just brought up a very interesting question that I might have to get back on in terms of our sequel or numbers because it does actually the entitlement does invoke some secret exemption.

2:28:57But it will be utilizing our specific plan objective standards that's why we are kind of swearing.

2:29:04At Berkeley, for example, because we already did have the objective standards that didn't have to resolve to accommodate at 2923.

2:29:12Councilmember Abelson: Okay, so that was that's so that's all included in in anything that relates to the budget.

2:29:20Is kind of what I was wondering at this point in time.

2:29:22Melanie Mintz (Community Development Director): And he was a specific plan is all grant funded and it isn't yet it isn't slowing down.

2:29:31Councilmember Abelson: that's the Bart project now.

2:29:33Melanie Mintz (Community Development Director): What that yes, so the Bart project is something so we actually have not yet.

2:29:38You brought up a good point we have not yet actually collected fees for the part application we've been in this long two year process kind of pre application process.

2:29:46By the time it's ready for an application, we will spend more a lot of time on it, so we actually did not budget.

2:29:52For the funds that will be coming in during that planning process and those will be somewhat significant so it'll fit into that it's just timing and kind of process it's an odd process but yes, there will be funds to cover staff time that has gone into this project, which has been substantial.

2:30:09Okay, so that revenue kind of like others because we just don't know when or what yet that is something that wasn't included in Karen, we should make note of that and Sandra.

2:30:19Councilmember Abelson: I think those are my only comments for today, I know we will be talking about this, some more.

2:30:24Okay, thank you.

2:30:25Karen Pinkos (City Manager): councilmember.

2:30:27And and.

2:30:28Karen Pinkos (City Manager): yeah just one more note, I think that you know your point is well taken again we.

2:30:34This this list that we're showing here on the screen to talk about even using fund balance, like, I said that is not something that we had at all contemplated.

2:30:41But, considering that we do have a fund balance we do have more federal funding coming, I just wanted to offer that as a.

2:30:48an option to the Council to consider if it's not for the purposes of this budget that's fine, but your point is well taken when it comes to other things, that this is something now that the Council has the ability to have an option for funding that we don't.

2:31:01necessarily need to mix it within the operating budget, so if the Council decides to just you know to to not use any fund balance that's perfectly fine with us.

2:31:13it's an I actually don't have really a strong opinion, one way or another it's just if this is an option for the Council to consider and if there are funding issues in the future, that this is something that that is available as well, so thank you for pointing that out.

2:31:28Councilmember Abelson: You think you think that's all I wanted to bring up at this point.

2:31:32Mayor Quinto: Okay, I want to thank councilmember able sin, and my colleagues for their questions and and their views on this i'm looking at them one time projections expenditure funding option, and you look at the the one time that the the.

2:31:49Karen Pinkos (City Manager): Low back where we were.

2:31:51Mayor Quinto: The last one yeah.

2:31:53Mayor Quinto: And if you look at that and you look at the things that need to be done.

2:31:58You know I support funding, some of these options.

2:32:03To include on the 2223.

2:32:07Especially looking at what we need to do in the future, the climate action plan, we need to do that, then other cities have done that already i'd like to get it done this year, the general plan safety element is required by the state of California.

2:32:24You know, we can look at that then and everything that's listed here, looking at the tech and equipment upgrades.

2:32:31You know if we don't do what now i'm afraid that these prices are going to be higher and then they're going to be asking for more.

2:32:39Money so if we can take care of some of these now or the majority, I would support that looking at.

2:32:46You know how our city is finally opening up and we have a lot of families here, I want to make sure that we find recreation, especially for our young families, we have a lot of.

2:33:00young families that have purchased phones at an all time I and they had the burden to paying the most taxes.

2:33:07were some of our neighbors are paying very, very little so i'm wanting to make sure our new neighbors who are the lucky ones that were able to afford to move in here.

2:33:18That these young families get a break, and that we provide the services that we have always have provided for our young families and totally fair, so I want to make sure that we look at that and that that is fully funded looking at.

2:33:38You know the other things that.

2:33:41you're looking at public safety and looking at how morale is at an all time low, and you see the rise in crime because of the mistakes that surrounding cities have done.

2:33:54With defunding not once but twice and now in Richmond you can't even get a cop there, because they don't have any COPs.

2:34:01So, making sure and and the burden is on our police department, the city of San Pablo the city of Albany we all have the burden of having to do the extra work.

2:34:12And it shows that our crime statistics, so I want to make sure that you know that we work on morale for our police department of public safety and mana sure that we will try to.

2:34:28do what we can and in supporting our police department and making sure that we include the programs to improve morale.

2:34:38You know this is, we have not a funded our police are not going to do this and that's on my watch, we are not going to do this, I do support using the money for that we have coming from our.

2:34:56marijuana establishments, the one that that we have open and the one that there's plenty to open soon we can use that to support a halftime person.

2:35:08that we can share with another city, but you look at the statistics of our city, have we have make sure we have homelessness, but we know these people and these folks are the ones that refuse services and it's the same.

2:35:23People that we've been dealing with for years they refuse to services that that are the core group and the nonprofit's have.

2:35:33offer to them, and I just want to be honest with my colleagues on the Council is that they don't want services they don't want it.

2:35:42And you know and that's that done and knowing that I was with Congressman garamendi looking at the nonprofit's we have a lot of nonprofits.

2:35:53And there are a lot of them more than what we need here for the city of Elsa reader, but we have nonprofits that are already working with.

2:36:04The city that know that a lot of these nonprofits are duplication of services and we need to be honest about that and get the truth out there.

2:36:13And I did discuss that with the other mayor's at the mayor's conference of West county mayor strong friends.

2:36:19And you know, so I just want folks to know that we're not going to overspend we're not going to spend recklessly.

2:36:29But we are going to care for our own House and we are going to offer services for them we're going to continue to do that, but our police.

2:36:39You know I appreciate what they're doing, we are going to have a mental health care expert someone that that deals with the mental health and social work and let them deal with that as well, so we appreciate that, so I just want a look at.

2:37:01You know the vacancies that we have and knowing that we're going to have a difficult time, because all cities have this problem with the vacancies, especially when it comes to public safety.

2:37:17Looking at the crimes that we have had, and you know with that you know I disagree with what a lot of our colleagues and other cities are saying that.

2:37:28Crime is low, that is not the case here and Elsa rainbow and, if you look at the newspaper articles that we have had lately.

2:37:37we've had an uptick in crime, and especially property crime and and I just want to say we are going to make sure that.

2:37:46public safety is going to remain one of our top priorities here and they'll Sabrina, especially when it comes to emergency services, especially when it comes to when we have a fire when we have.

2:38:00A major catastrophe like a fire and an earthquake that our police is fully funded when it comes to that as well and that's you know, and that is especially during my watch and I want to make sure that.

2:38:15We are covered there so cheap keep looking at you know the shortages, that we have let's recruit and let's make sure we get good people too.

2:38:28And we have a good police department and i'm what i'm tired of are the folks at include that come to our Council and they say that they're part of the bad group that we see on TV, that is just not true, we have good.

2:38:41public safety and and employees here and also Rita and i'm going to back them up 100%.

2:38:47So, by looking at.

2:38:50What we have budgeted and what and all of the vacancies that we have Mr to make sure that you know we stay competitive so looking at this, the importance of this.

2:39:04that the plan that Karen has with our COMP study, I want to make sure that we fund this and we fund it soon so that's part of the thing that I would like to do, and if we can start on this year, I very much appreciate it.

2:39:20So that way we can pay what the going rate is here in the Bay area we are competing with the other cities that have the same problems with.

2:39:31A lack of personnel and they're going to Berkeley they're not going there they all left Richmond because they were given pink slips they went to San Pablo they went to Bart, but I want to make sure that we keep our public safety, to have to.

2:39:48recruit time and time again that's not acceptable, I want to make sure that we stay competitive so Karen.

2:39:54You know that COP study is important, and I want to make sure that my Council members know the importance of this COP study it's expensive.

2:40:02And, but it's overdue and and now we will finally get the truth, once we work on this, so I want to make sure that we get this done this year so let's go to.

2:40:15We have our FAB chair let's go to our FAB chair and and and questions that are FAB committee have and we'll go through our chair to do that and we'll go to, but the chair of the committee God.

2:40:34FAB Chair Patterson: All right, great Thank you keep them in Thank you Karen and Center for the presentation post very good, I have a couple of comments and they really surround the reserve so I was very pleased that that century thought that you might be able to achieve a $1 million.

2:40:55reserve reserve, not counting any of the architects I think that's great, and that was the FABs recommendation I think we need to keep on doing that.

2:41:05I know the projection that you showed for the 10 years looks very, very robust and we're going to have $25 million of reserves and 10 years.

2:41:15But a lot of things can change in those 10 years, and so I think it's really critical that we maintain the goal of a million dollar incremental general fund addition to the reserve each year, independent of our phones and that we really watch that very carefully.

2:41:35The second item is, and I know you all remember this, that the city, adopted a recommendation from the FAB several years ago to create an emergency disaster relief fund.

2:41:48And that doesn't show anywhere here in the budget it doesn't show in the 10 year projection so that's one of the reasons why that 10 year projection look so good.

2:41:58So far above the baseline for the reserve on this, because it doesn't include the ERS and those two go together, that is, the.

2:42:09The city's goal for the general fundraisers plus the ED rf together or what the city really needs to rely on and achieve in the longer term, so we can't take our eye off of that and we need to make sure that we start budgeting for that.

2:42:26The The other thing I really wanted to touch on is wildfire safety and it's not that that that related to anything, in particular, other than I know in my neighborhood.

2:42:40we're we're very concerned about and we want to make sure that the city is prepared so when you're talking about things like.

2:42:49Ensuring that there's adequate police Alec adequate fire safety it's critical to the neighbors.

2:42:57Certainly around here and i'm sure elsewhere else retail We have lots of trees and else Rico you live next to a wildcat Canyon that having that reserve on there's only part of it.

2:43:08Having the adequate protection adequate response personnel is also critical as there's the mitigation of trees in the vegetation management that goes along with it.

2:43:23So those are my main comments I don't really have any questions, I understand the budget i'd like to know if any of the other family members, and I see some hands up from.

2:43:33ramen.

2:43:34Karen Pinkos (City Manager): and cure Patterson If I could just address really quickly the emergency fund for the purposes of the projection fact, let me go back there.

2:43:44um we would essentially for the purposes of this projection that would be added together so when you consider the emergency fund like you said it goes together right, so the minimum 10% plus the emergency fund would be around.

2:43:5610 ish million dollars, ideally, which we will hit next year now the emergency fund, as you indicated would restrict some of that money so you're absolutely correct, but for the purposes of this once we start hitting.

2:44:09higher than 10 million, of course, than that six months, which would be about $6 million, I think, is what would be.

2:44:17That would be restricted, and so what we have talked about would be having the Council set a policy for the for the use of surplus funds in the future.

2:44:26to fund the that to fund the section 115 trust that will be talking about this summer, but, but I just wanted to it's not like it's not missing, this is included in here, so you would add those together to create the entire general fund research.

2:44:42FAB Chair Patterson: Right, thank you for sure I.

2:44:45Karen Pinkos (City Manager): just want to make sure that we're not ignoring that.

2:44:48FAB Chair Patterson: yeah Okay, thank you, sorry moisture from.

2:44:54FAB Vice Chair Farahmand: Right Thank you so much staff for your presentation and thank you very much for this joint meeting between financial Advisory Board and Council as.

2:45:03I do want to see further clarification on that chair Patterson brought up regarding the rf my my estimates.

2:45:11The comprehensive financial policy has a 10% or fungal 10% of operating expenditures, which is about 4.5 million our.

2:45:19era fund is about 6.8 million have a goal to told us about 11.3 million or 25% of total that's higher than the GMO a 17% amount, I think it might be.

2:45:32More descriptive if we added that dashed line to the chart here as well, to show that you know we're going to be there, hopefully, you know with this fiscal year.

2:45:42Given that you know this chart is showing about 11 million can we start converting some of that money into the reserve ED rf reserve starting next fiscal year, which is again about 6.8 million we don't have a whole thing.

2:46:00Karen Pinkos (City Manager): yeah I think I think you're absolutely right and that as as we've talked about at the fat meetings for the council's edification.

2:46:08On the FAB has talked about looking at these types of policies again for the million dollar surplus each year and for looking at like yeah we have a say we have $11 million.

2:46:20We need to make sure that part of that is restricted again, it still counts toward the total fund balance, but that is restricted in case of emergencies which again protects us from.

2:46:30Even this chart here right, so if we still have some of this here and it's restricted for use of emergencies that makes it even safer.

2:46:38And I think that the FAB is going to have a great role in working with Sandra in coming up with a policy, particularly for the surplus funds as some cities, for example, say.

2:46:49Okay, every year, we have a surplus will take a percentage that goes to general fund a percentage that goes to era, a percentage that goes to section 115 and that can all be discussed amongst all of you as to what the right.

2:47:03You know mix would be but, again, as now, we have this, so I think that that's a big project that the FAB is going to take on, hopefully, and that I know that Sandra and I are working on.

2:47:15Was we're getting ready to talk about the section 115 trust that we want to bring to the Council, this summer, making sure that we're funding, all of these things so absolutely I.

2:47:24You know, for I asked a bit of forgiveness and that.

2:47:29The these past two years have been so focused on tickets that now that we have this fund balance we need to make sure that we keep it there, and that we're putting it all in the right places.

2:47:40And we just haven't had to work on that for this past couple years so that is now for our next for our next the next couple of years that we're that we're making sure that all of that is is is being considered, and I think the FAB will have a great role in helping develop that policy.

2:47:56FAB Vice Chair Farahmand: manager and my next question is, you know it's if we have walked out of the woods, as you mentioned, that you know the words are kind of still behind this here and.

2:48:07recessions do happen about every 10 years following strong growth what I didn't see in the budget proposals by department today was a prioritization of the different line items so, for example, can.

2:48:21You know, and these are just examples i'm not an expert on these I don't think these are actually possible but, for example, can.

2:48:28The line item under public works your store 100 K budget, in place of measure ah, I know what did I what did I getting saved to fund later cannot be 50 K, instead, can we have to build a new police cars instead of three new police cars.

2:48:43I don't know these answers, but I would encourage staff to say here's the here's the 1015 things we want and.

2:48:49You know the there's maybe two and a half or four of them, that would be really nice to have that we wanted i'm encouraging a slow growth mindset back to prepare with levels, because there was not a lot.

2:49:04And I have to be short, hopefully specific questions as well and Sandra.

2:49:12mentioned the train or a projected to Nadia TRAN where these are much smaller tramp.

2:49:17Karen Pinkos (City Manager): No dragon, we are not doing a train this year.

2:49:21Sandra Dalida (Finance Director/Treasurer): So train you.

2:49:24FAB Vice Chair Farahmand: In one line on my line item I noticed on see the draft preliminary budget slide overtime pay line under expenditure seem to go up pretty significantly from the 2120 minute legitimacy 1.1 million to 1.6 million.

2:49:44Sandra Dalida (Finance Director/Treasurer): yeah that that would be.

2:49:45associated with the vacancy you've got a high vacancy rates at the current rate that we have some of the mandatory service levels and staffing ratios have to be maintained and that's occurring through over time.

2:50:04FAB Vice Chair Farahmand: Thank you very much appreciated.

2:50:08FAB Chair Patterson: Okay, thanks, thank you and i'm just going to go in the order I see on my screen is left to right it's Member if it's honest number doesn't then number one.

2:50:19FAB Member Ktsanes: Well Thank you everyone for your presentations they've been very informative and my question reflects a concern I have.

2:50:27i've researched quite a bit about the funding categories, into which are pro funds may be used by cities.

2:50:33Given the impact Kobe has had, particularly on low income families and small businesses in Australia.

2:50:38I think it's very important that our pro funds be used as intended and illustrator not be seen as gaming the system somehow.

2:50:44i'm curious how the one time requested expenditures for a compensation study technology updates a library consultant state required general plan safety.

2:50:54element and climate action plan meet the spirit of our funds intended for use for coated relief why don't exclude the worthiness today these projects melon strike me as having anything to do with the negative economic impacts of code that's my concern.

2:51:11Karen Pinkos (City Manager): So I can address that so i'm i've done a lot of work directly with our auditors and with i've been trained on several different.

2:51:24training seminars and webinars from the US Treasury on the use of our funds and how cities are able to use our funds.

2:51:31So the city is considered what's called a non entitlement unit through the US Treasury, which is essentially most cities under 250,004 cities under 250,000.

2:51:41In the final rule, the US Treasury designated what's called a standard allowance for cities have up to $10 million in arpa funds to be used for revenue loss and that assumes that every city, who.

2:51:57received this funding can use up to $10 million to backfill those revenues that they would have received, were it not for the pandemic and, in fact.

2:52:08On several different different webinars that I sat on to learn about reporting the Treasury was asking cities and asking non entitlement units.

2:52:18To use the standard allowance, because it certainly for them in In my estimation, it makes it a lot easier to report for them, because they have any cities all over the country that now have to report I we were required to report.

2:52:32By April 30 which we did all of the use of our funds which we took the standard allowance and we got $6 million so it's again it's totally within the framework and used it for revenue loss.

2:52:45We are still under a single audit from our auditor, so we are also completing that right now from the Federal Government, so all of this is being audited and all of this is being.

2:52:54Actually again suggested by the Treasury for because what that does is it allows cities to use it for general government services general government services, which is why we back.

2:53:07Essentially backfield those eligible costs.

2:53:11And even President Biden came out a couple of weeks ago, suggesting.

2:53:15That some of that funding be used for police and public safety, so what we what we submitted to our auditor was looking at all of our payroll please fire public works, all of the public safety that.

2:53:27Was within the last fiscal year and will we will do for this fiscal year are all considered.

2:53:34general government services but also anything else, so that revenue loss was put into our general fund balance so now it's part of our general fund balance.

2:53:43The spirit of arpa that I talked about a class and calm study I hear you that that may not necessarily be something that that seems like it's arbor related, however, who provides the general government services.

2:53:56The employees and in order to make sure that our employees are fairly compensated and that we're able to attract and retain talent in order to provide those services.

2:54:05that's what this study does so that certainly is my connection but technology is absolutely included in our BA in all of the original rules infrastructure building a new library is infrastructure.

2:54:16So a lot of those things that's why we sort of made that connection again the City Council does not, I mean that was just an option for the City Council to consider.

2:54:26or with future projects coming up that they can consider using fund balance, because we want to make sure also that we're being prudent with one time, money.

2:54:34Is not paying for ongoing costs, either, and so one time, money for one time projects that was the connection that staff made to try to to show that, as an option, so I totally.

2:54:47I totally understand that it's not directly coven related as far as the original rule that came out for Arba but since then, the final rule the Treasury is definitely encouraging cities under 250,000 to take the standard allowances revenue loss and that's exactly what we've done.

2:55:08Sandra Dalida (Finance Director/Treasurer): If I if I if it's Okay, like to add one other fit of the information in the Final Rule, there are several categories, in addition to everything that city manager.

2:55:20just mentioned it talks about the technology allowances, in addition to our replenishing your revenue losses and technology infrastructures to improve access.

2:55:33To government systems when you're more remote like recreation, like many of our other functions and you have reduced hours you're more dependent on people using technology.

2:55:43If you don't have the systems that are available for people to easily access your services that is one of the absolute allowable expenses as technology advances I refreshing your technology to make sure its current and it's included in one of the 10 categories in the file world.

2:56:21FAB Member Ktsanes: Thank you, both.

2:56:24appreciate your answers, thank you.

2:56:31FAB Chair Patterson: Okay let's go to number cousin number one.

2:56:35FAB Member Cazden: Thank you.

2:56:37To staff, I thought this was an excellent presentation and I thought it was done very, very clearly Thank you so much.

2:56:45I have two questions and then i'm a general comment, one question, I guess, it would be addressed, I think, to Chris Jones you were talking about the midtown.

2:57:00midtown activity Center and the fact that obviously there's still there are no resources, no staff to open it I am curious how for how long do we still have those buildings are we still paying rent on them and how long does that go.

2:57:17Chris Jones (Recreation Director): Yes, we're still paying rent on those buildings through may 2023.

2:57:22But we are.

2:57:24individually patients.

2:57:25With with someone to take over at least one of those modular buildings and so we're hoping.

2:57:32That what I guess, they said.

2:57:36Karen Pinkos (City Manager): yeah.

2:57:37Chris Jones (Recreation Director): With the kensington.

2:57:40police protection and community services district, to take over.

2:57:44One of those modules which was really the city of minimally like $62,000 plus utilities costs and then after next fiscal year we will be.

2:58:02FAB Member Cazden: Okay, and so, in essence, that has not come to fruition that that's not accounted for in the budget and the assumption is still that we're we're funding, the whole thing, so that there might be another $50,000 to our benefit.

2:58:18Okay The other thing I couldn't I didn't quite pick up.

2:58:24And it relates to a wildfire prevention were in the budget is the funding for removal of dried grasses and fuels, I did not catch that.

2:58:39Karen Pinkos (City Manager): That would be I was getting that would be within looking there you are event that would be within our landscape maintenance at least been some of the.

2:58:49Some of the current costs that we have, for our part, essentially what's included in our parks, so if that.

2:58:55Yvetteh Ortiz (Public Works Director): is correct, so we have.

2:58:58We have funding and our landscape maintenance contracts to do a weed abatement on our easements and we also have.

2:59:07Thanks to measure H, we have additional funding for the hillside natural area to do additional tree and vegetation removal in the hillside natural area and one of the good things we have to report to is that the city has been.

2:59:22selected as a to go into a second round we submitted an initial application for a grant funding of about $150,000 to do a full scale vegetation management plan for the hillside natural area.

2:59:35Working with the urban forest committee we said we and we were selected to move forward with the second round.

2:59:40For that so hopeful hopeful that we will receive that funding and then we can do a full plan for doing more substantial work in the hillside Natura area and getting cost estimates for what that work would cost.

2:59:53FAB Member Cazden: Excellent Thank you and then i'd like to just briefly make a comment about those potential one time projects, perhaps, so you could put that slide back on i'm sure.

3:00:09Okay yeah what I want to do, I strongly agree with FAB chair Patterson.

3:00:18That we really need to be cautious, that we need to keep both the general reserves and also the ED rf reserves.

3:00:29And in that vein, I would urge extreme restraint in funding one time projects, obviously, the general plan safety element which is required by the state, and maybe one or two others but it, I think it is more important that we make sure that our reserves are growing and adequate.

3:00:56I do believe that it's likely that there will be some form of recession coming over the next few years, and if we are to keep our 10 year plans, I really think we need to exercise restraint and that's all I have, thank you.

3:01:15Thank you.

3:01:21FAB Chair Patterson: The leader.

3:01:26FAB Member White: Thank you very much, chairperson Patterson.

3:01:29wanted to thank the city manager and our finance director for an outstanding presentation, as well as our department heads at found it quite informative so thank you very, very much.

3:01:43I appreciate the questions that the Council members raises, as well as those of the family members that really appreciate everything i've heard this evening.

3:01:53i'm relatively new at this so some of my questions, maybe out of naivety, but I do have a couple of questions and then something that i'd like first take a look at So for me it wasn't.

3:02:08clear to me, which one of those.

3:02:11expense lists were one time we did have a one time list, but I wasn't sure which ones were ongoing or which ones were already included in the base budgets for the preliminary so it'd be helpful to to know that just for clarification for me I don't I don't have.

3:02:31An opinion, one way or the other, I just want to know, and then, if you could go back to the draft budget page.

3:02:40Very briefly, okay.

3:02:44One of the Members and I don't remember at this point, which I mentioned the overtime paid line of $1.6 million, and if I heard correctly.

3:02:54The reason why we have this overtime is because we have to backfill behind those vacancies, and we need to have coverage.

3:03:03One of the things that i'm concerned about is that if we have those positions funded and those positions are vacant then we've already funded the overtime it just offsets.

3:03:15So you know and and our base salaries salaries and benefits, we can usually pay for overtime out of salary savings so then it may be duplicated.

3:03:30Sandra Dalida (Finance Director/Treasurer): i'm sorry, is that a question, I just want to make sure I address.

3:03:34FAB Member White: Yes, I think it is a, it is a question is a duplicate because.

3:03:38it's from the vacancy.

3:03:41Sandra Dalida (Finance Director/Treasurer): Well it's it's funded from the vacancies, if you look at the halfway 22 amended graduate.

3:03:49The overtime is about 1.8 in total.

3:03:53And you know we've achieved that and, yes, we are paying for because we have salary savings.

3:03:59And however, as we move forward into the current into the new year, we need to make sure we have adequate budget in over time.

3:04:09And because we do have vacancies moving into the new year, so I understand why you would ask, is it duplicative.

3:04:18It could look that way, but we need the line item budget to be able to fund the overtime, so we could, and we can the city's practice is to fully fund budgeted positions.

3:04:32and not all set up a salary savings and other organizations, I understand what you mean that you would see the asset but also read of budgets positions fully funded.

3:04:47FAB Member White: well.

3:04:47Sandra Dalida (Finance Director/Treasurer): As salary savings would end up in some balance at the end of the year.

3:04:52FAB Member White: Okay, so it turns out that we looks like we have about a half million dollars to play with.

3:04:58Sandra Dalida (Finance Director/Treasurer): Yes.

3:05:01FAB Member White: Yes.

3:05:01Karen Pinkos (City Manager): And we and Sandra is right in the past we actually did budget for salary savings in our line items and.

3:05:09So there are certainly different philosophies on how to do that, but I felt.

3:05:14From my part, I feel it's more important for the public for the Council for the staff to understand that we're this is fully loaded.

3:05:22And that way i'd rather come in under budget, then over budget we have had situations in the past where will fund will fund.

3:05:30Much less than over time and then we go way over and we have to go to the Council in order to get permission to spend more money and so that's what I don't want to put us in a position that is part of how.

3:05:41We got into a little bit of overspending issues because we did not anticipate how much overtime would actually happen that didn't end up being covered by salary savings so it's it's a bit of a philosophical.

3:05:54shift that i've certainly made since i've been sitting manager, because I just want to make sure that we're.

3:06:00You know, again, assuming that every single person is fully loaded and fully funded on July 1 I would rather the budget be more accurate that way and budgeted for it, so that I don't have to go back and ask to spend more.

3:06:14FAB Member White: Well, it does it does even based on your explanation, it does appear to be duplicative but i'm not going to question your reasoning, for doing that.

3:06:24Just looks like we should have some extra money at the end, and if it works out like that you certainly won't get a finance man.

3:06:31FAB Member White: The other question that I have is more to do with the practicality of our operating budget, meaning that master coming off a rush restaurants in the area are packed freeways are super crowded people are traveling more, as indicated in our travel budget, and we have.

3:06:53We have abbreviated service levels in our departments, so I want us to I don't know what we are thinking about in terms of expanding.

3:07:03Our service capacity, and I know that costs money and you've been super careful about cost control and making sure that we don't overspend.

3:07:13I appreciate that but, at some point in fairly near future, I imagine that our Community is going to want us to restore our services, so I don't know what that looks like for our long term financial planning, but.

3:07:27And I don't even I don't really know what the witcher philosophy is, but if we're talking about a roll over budget and maintaining maintaining the status quo, at some point, we should think about right sizing our budgets adequately and.

3:07:43Making sure that our departments overstaffed and I do I do understand your your concerns about cost containment and no layoffs you don't want to acquisitions and then turn on next year and say I can't afford to pay you I get all I I totally get.

3:07:59Absolutely just wanted to you know hear more about what the philosophy is about expanding our capacity to provide services and i'm as a form of being camera I feel like that's counterintuitive to who I am but I know that it costs money to too expensive.

3:08:16Karen Pinkos (City Manager): You know I i'm sure the staff are rolling our eyes i'm going to say it one more time people equal services, services equal people, we cannot do one without the other it's impossible, that is, that 75% of our budget is to provide those services you're absolutely right.

3:08:31And that is what are certainly what our community has demanded, I think I I have been so.

3:08:38gratified, I think, is the right word by our Community being as patient, as they have well we've been going through all of these challenges, these past couple years.

3:08:46I think that we've all kind of banded together, especially through the pandemic.

3:08:51and have been very resilient, including our staff has been as creative as possible, to try to continue to maintain as much as possible.

3:08:59I think the vacancies right now, or a kind of you know, an offshoot of all of this, that has really been something we struggle with but you're absolutely right and it's it's impacting.

3:09:10morale to as well, when you when we had to lay off all those people to work didn't go away, we all had to take it on.

3:09:16The city manager's office is a great example the city manager's office is me and the assistant city manager and we're doing everything and that's fine i'm you know we do that, but that is not.

3:09:27You know it's also not sustainable, for everyone to continue to do two or three different jobs, so I totally hear that what I have been.

3:09:34And again i'm asking for one position this year.

3:09:37Will we get back up to that full staffing, that is what I just really want to try to get us through these next couple of years.

3:09:44While we're still in the pandemic it's really hard to be to plan that out because we're just not sure how that's going to go, but having said that.

3:09:53Being thoughtful being strategic, we are taking this opportunity, for example, to look like recreation, is a great example they've looked at how they can.

3:10:02You know repurpose senior services without perhaps a separate building in order to do that in order to still try to provide the services that are seniors water that are older adults.

3:10:12want to be able to participate in we're ramping that backup as you heard Chris say we're expanding Rentals we're expanding field trips, where you know where we are we're again my my, I just wanted to be thoughtful about it and strategic.

3:10:26And as long as we have the revenues to support it, so I just you know we're a small town and we were small but mighty we've done so much with so little and, but I just don't want to.

3:10:35I don't want to overburden, so I think that is probably a long answer to your question, which really means what we're still looking I think we're still kind of in.

3:10:46Once we get into recovery mode real recovery mode and then I would like to re engage with the Community on our strategic planning process.

3:10:54To hear from the Community okay So here we are we've made it through this challenge.

3:10:59what's next, and so I don't want to make that decision myself, I think that that's a Community decision I would really like to be able to restart the strategic planning process and talk to.

3:11:09Everyone that I can about what it is they expect out of us and what they want to see, and so I I totally appreciate the question and you're right, I mean I look at I look i've been here.

3:11:19Almost 21 years now, and I look back at the the ebbs and flows and the ups and downs i've been through the great recession and all of that and we've.

3:11:26we've tried really hard to maintain a even level of services, as we can we've defined these past few years.

3:11:33Not just because of budget challenges, but because of the pandemic, so I feel like once we really start to recover you're right and as far as.

3:11:41sort of the practical reality of our local emergency and that we've had modified service delivery.

3:11:48fingers crossed, as I announced that the last Council meeting we're going to have our first in person hybrid meeting on June seven and i'm really hopeful that.

3:11:57we're looking you know, again we know we're in a bit of a surge so i'm hoping that that's.

3:12:02You know, starting to wane, I think that there's been a ton of positive cases but from some of the stuff i'm seeing from the county hospitalizations haven't severely increase so.

3:12:11Perhaps we'll make it through the search and maybe sometime this summer, maybe even sooner than you know I mean summers actually.

3:12:18This summer is like a couple weeks away, so the next few weeks we can stalk about you know, ending the local emergency perhaps so that's and then that you know more, that we can open and more that.

3:12:31Any restrictions that we have, would we would we could end those but fingers crossed that's we're just taking a day by day at this point, I think, but.

3:12:40But your point is very well taken and I think that that our staff is def is definitely eager to kind of get back to doing what we do best is just being you know responsive Community members.

3:12:54FAB Member White: Thank you, I appreciate your explanation, it was it was quite thorough and I do I do sincerely agree with you that having people do multiple jobs it's not sustainable.

3:13:04Number one you you burn people out number two if you're laying people off people are wondering who's next right and three when people are overburdened that way, the quality of the work that you do is not that great great it's been a tremendous tremendous.

3:13:22advantage to having our new finance director in in terms of you know, the way that she has presented the budget and our explanations, so if you can get a couple of couple more alias people like that that you might not need as many people on the hamster wheel.

3:13:39But.

3:13:40Karen Pinkos (City Manager): Our best for sure.

3:13:41FAB Member White: I do appreciate, you know your explanation, and I do agree with.

3:13:49Council.

3:13:51Excuse me mayor pro tem in her.

3:13:54Request for assumptions, because you know something like our policy around funding both the position and, over time, it really needs to be called out.

3:14:03so that people know that it was a conscious decision for you to be able to do that for you to do that and people like me understand you know why why we did it and I don't ask a lot of a lot of.

3:14:14Unnecessary questions, but I do appreciate you guys saving space for me, I had to dash in and out during this time, my garage door broken a broken.

3:14:24Open since yesterday, so the garage door repairman was here, so I need you to step out, I really appreciate you guys saving space for me i'm very appreciative.

3:14:33And i'm very appreciative of all the work that you guys all of you did to make this happen this evening and half having the joint session with fat and the City Council I do appreciate Thank you so much.

3:14:46Mayor Quinto: Thank you very much Okay, thank you to our FAB Members very much appreciate all your work up next we will have public comment now up this time, members of the public who wish to provide public comments for this side i'm said, use the raise hand feature.

3:15:02to request to speak Clark.

3:15:05Thank you mayor, I will just quickly announce that we did receive public comments in advance of the 4pm deadline today.

3:15:14Those comments were received on the side and from Kimberly white Michael Fisher and Charles Taylor at this time I have for request to speak mayor, if you could please confirm the three minute time limit.

3:15:25Mayor Quinto: Bring that it's for four people correct.

3:15:27Thank you.

3:15:31OK, I will go to our first speaker, which is Alan Miller now, you should be able to unmute and begin your time now.

3:15:39Al Miller: Thank you.

3:15:41Good evening Eric window can tell and Council members, my name is Alan Miller and i'm an l three resonant.

3:15:50I just want to add my strong agreement with and support of the Michael fair Fisher our library Commissioners comments written public comments that were submitted on this item to you earlier.

3:16:09He much better than I, has identified the value of public library, which I understand, most of you agree with.

3:16:22But I ask that you continue to be aware of and realize how may have the city council's policy and the city's reputation for serving the public.

3:16:37go through the public library, because of the incredible staff that is working there, thank you.

3:16:47Mayor Quinto: Thank you.

3:16:48Thank you, our next speaker is cordell hendler or delete you should be able to unmute and begin your time now.

3:16:55cordell hindler: Can you hear me holly as we can, so that even being a mayor quinto a Council members FAB my name is Coco handler and i'm original residence so.

3:17:06I was very impressed with the presentation I do want to thank staff for that, so I do want to let the record reflect that it was my idea to have the class and compensation study because.

3:17:19Yet again i've talked with other cities and what and what consultants and they have used a number of consultants to help what to do the class and comm studies so.

3:17:29I think it was my idea, so I should get part of the credit for it so that's one and then number two is um let's see as far as like because I agree with a Karen.

3:17:40because that was the other position, I had in mind and assistant to the city manager, because it has been bacon for quite some time and I said Okay, now they need to get this position.

3:17:53filled, because this is very important, so i'm thinking that it sounds like a good possibility and.

3:18:00That being said, i'm i'm in i'm in full support of this because, hopefully, that for the July Council meeting that uh that whoever the consultant is they're going to have their their hands full a to do the class and COMP study so i'm in full support of that so on a side note.

3:18:20I don't want to be a burden but uh.

3:18:23That that would be the warrior so he.

3:18:30In queue our next speaker is how many gowdy.

3:18:34And each be able to unmute and making your time now.

3:18:38Howdy Goudey: Thank you mayor and Council and five Members, my name is patty got a listen i'll read it.

3:18:44So, I guess, first, I wanted to.

3:18:48appreciate the multiple voices of support for the Climate Action Plan, which I think is really important, and I hope it moves forward quickly as well.

3:19:02Howdy Goudey: But I do want to also point out that you know Council adopt the climate emergency resolution and 29 teens are pushing three years since that was announced and there's been really little of substance done.

3:19:21In Council on climate issues since then and I think well, the action plan is necessary and needs to happen, we also just need action and and so i'd really like to.

3:19:34advocate that the city and the Council, you know take meaningful climate actions you know, independent and, in parallel with doing the Climate Action Plan, and you know I think mayor pro tem modi Armas comment comments about you know, a.

3:19:53A policy on on vehicle procurement is is a very good example of that the city have a.

3:20:00Good leadership, you know demonstration of this 10 years years ago with adopting an electric vehicle at that time, which was fairly new at that point and and has done very little over the last 10 years.

3:20:17it's really.

3:20:21Frankly it's not the right thing to just blame technology, the technology is there, you know hybrid vehicles have been built for 15 to 20 years electric vehicles have been.

3:20:34routinely built for 10 years, these are mature technologies, if they don't exist in the niche market that you're trying to procure.

3:20:44it's not because the technology can't do it it's because there aren't enough voices saying we want to buy this and we're not going to buy from you until you offer it.

3:20:53And so you need policies and you need you know, a collection of voices saying this is the right direction to go to get the vehicles produced because of the technology can be done it's just the manufacturers, providing it and so.

3:21:11If that's just one example of the everyday decisions that the city makes that need to take the climate emergency into account it's not just about doing a Climate Action Plan it's about.

3:21:23Putting these into every day decisions that matter for the climate, and I also want to express support for five member sinuses comments about the.

3:21:36spirit of of the arpa funds, I think that was really on point and in the spirit of equity and you know, we really should.

3:21:44Mayor Quinto: finish your comment Tyler.

3:21:47Howdy Goudey: yeah no I.

3:21:47I just think it's worth reflecting on you know whether we're serving ourselves in a higher position rather than serving those who really need.

3:21:59This support the most, so thank you.

3:22:01Mayor Quinto: Thank you.

3:22:03Ill our next speaker is sherry dropping her here, you should be able to unmute and begin your time now.

3:22:09**Sherry Drobner: hi good evening.

3:22:11Thank you for the presentation was very informative it's been a long meeting i'll try to be as brief as I can, as I can be, first of all thank you howdy I appreciate all your comments, I have to agree about the vehicles.

3:22:29I like to challenge the police chief and asked him if he's going to purchase three vehicles to at least think about making one vehicle being that being.

3:22:41Perhaps an electrical vehicle maybe talking to the city of fremont and their police department, I know they've purchased a tesla model s and had outfitted.

3:22:53there's other examples of police agencies around the country around the state that are doing this, so it's totally doable.

3:23:06it's just takes the will to do it and having a policy I think in place would be a very positive thing and the other point on the police badge, I would like to ask about the traffic officers i'm wondering if, for instance, like in the city of San Jose they use non sworn police officers.

3:23:31which not only so you're using civilians, the cost for the personnel is also different.

3:23:39And, and I wondering whether that's something to think about for traffic officers and their capacity.

3:23:49As vacancies are being replaced and.

3:23:55Overall, in the budget discussion, I feel like the whole issue about.

3:24:01The House and the situation around housing in our city seems to be missing in terms of thinking about ways that we could put some solutions together, and I know they're supposed to be departmental committee.

3:24:17Addressing this thing, but I don't get a sense, where we're working with it, except that I see money for abatement in the budget and that isn't really a very comprehensive.

3:24:29way to solve the issue so i'm hoping that perhaps at some point they'll be a more dedicated effort toward looking at the end house in our Community through a Commissioner committee or some type of body, so that we can look at it more carefully, those are my comments, thank you.

3:24:51Mayor Quinto: Thank you.

3:24:52Thank you, man that does conclude our request to speak at this time.

3:24:56Mayor Quinto: Okay, very good, thank you very much let's go back to let's come back to the Council any final comments.

3:25:13Okay, any final comments from our team.

3:25:19Go ahead Chairman Patterson.

3:25:23FAB Chair Patterson: I don't really have any additional comments.

3:25:26Just kind of fake Thank you my own the minute.

3:25:31Mayor Quinto: Wait we hear you fine.

3:25:32FAB Chair Patterson: Okay, great Thank you.

3:25:34I think this has really been a good idea to put the Council and the path together it's much more efficient it's really good to hear the concerns both of the Council.

3:25:45members of the public, at the same time, so I look forward to doing this again next year, I think it was very good idea, thank you.

3:25:55Mayor Quinto: Okay, very good um next week we'll have a final City Council discussion and potential action or direction to staff, and I want to.

3:26:07return this to our city council.

3:26:16Any final thoughts.

3:26:19mirror proton.

3:26:21Mayor Pro Tem Motoyama (she/her): Thank you mayor.

3:26:23And I agree with your fashion, this has been really great having joint session with the FAB and I feel like we've gotten a depth of of analysis and questions.

3:26:34that's really helpful in our decision making, so thank you staff, particularly for putting this together and making it happen, I would like to see kind of its next steps direction.

3:26:47The the full wishlist separated into one time and ongoing expenses so we're really looking at it comprehensively is really great seeing kind of what each department needed and wanted, but kind of put that back together and look at that as.

3:27:05A comprehensive list so we can really kind of dive into that, and you know get some kind of prioritization because it's clear there's a lot of wishes and.

3:27:17A lot of calls upon the funding.

3:27:20I would like to see the detail on the 10 year trending the assumptions and kind of being able to stress test that a little bit more maybe in a session where staff could just.

3:27:34provide that either in you know.

3:27:37print it out and backup for us as as Council members or some real time interaction with that to make that more of a dynamic thing for us to understand.

3:27:51And then you know, I hope that we can you know I think what this process has told me is that we have really project needs that are some projects around town that we really would like to tackle.

3:28:06And I don't think we have kind of a comprehensive list of those either that maybe we can start to think about.

3:28:15You know longer term than just the budget term of things that we would like to work on.

3:28:22And then you know that'll help us both get things done and also respect and where we would like our fund balance to be with the ERS.

3:28:33And our own guidelines and our own guide rails, to make sure that you know we're both getting things done and saving money in for the future, so I think those those pieces of information will be really helpful.

3:28:47Mayor Quinto: Thank you councilmember fidelity.

3:28:49Councilmember Fadelli: Thank you, yes, I want to concur with the Mayor pro tem I think it's about time that FAB was a part of the decision making process of our budget and having them be more visible.

3:29:01benefits us all and has a great discussion, I also want to thank staff because reality check is that we've just come out of a very delicate year.

3:29:12And there are scores of problems around us financially socially every every imaginable thing, so the pace of cautious progress is what I want to applaud here.

3:29:25and not get too excited about new projects, we need to make sure we're solid and as the mayor says sustainable sustainable so good job let's keep talking let's move forward, I think we're all on the same road that we need to monitor and make sure what we do is sustainable, thank you.

3:29:45Mayor Quinto: Okay anyone else.

3:29:50Okay, a city manager Karen pincus zero any additional direction that you need from us.

3:29:59Karen Pinkos (City Manager): Well, I just want to say thing and just a heartfelt thank you to the city council to the FAB this has been a really great discussion for us as well, I think this is also really great for the staff to be able to have facetime with you all.

3:30:13So I want to thank you for for your indulgence.

3:30:16On are somewhat long, but hopefully you got a lot out of it presentation I it sounds like you did so i'm really, really pleased with that I agree, I think that having this joint meeting is is wonderful, and I look forward to doing that again.

3:30:30I feel like we've gotten a really good direction I i'm not hearing a lot of i'm hearing a little bit of a tempered.

3:30:39conversation around using fund balance which I totally appreciate again that was just meant to be an option.

3:30:45But that certainly gives us a lot to think about when it comes to those one time projects speaking to what mayor.

3:30:51Pro tem woody yama that's exactly why I really want to re engage the strategic planning process.

3:30:57To put all of that, together, and put all of that out there, so I hadn't budgeted for that this year, but maybe it mid year we can have a conversation about that and look for.

3:31:05We, if you remember, we had started it we were supposed to have a Council workshop.

3:31:10The week of the the local emergency and we had to cancel it and so it's been on hold, ever since, so I would love to pick that up it's it's exactly what would.

3:31:20What you're talking about what have the goals and objectives and what we want to get done and what the Community wants to see so.

3:31:26So, so I you know I hear that and I think that that's a really a lot of what all of you have said, I think, would fit really neatly into that so we'll take a look at that as well.

3:31:36And I don't know if Sandra has any additional thoughts, but from what i'm hearing this the APP you know, like I think councilmember fidelity said we're on the same road right now we're looking at you know kind of.

3:31:47You know if and i've said this to.

3:31:51To a couple of you, even just today if it's one good thing that came out of the State auditor's report it's that the increased monitoring the increased conversations with the Council and the FAB that we've had over these past couple years i'm.

3:32:04i'm sorry that it got to the point where we had to hit that.

3:32:07Low in order to really kind of learn how to bounce back, but that's what resilience really means is that when you get knocked down you walk you stand back up.

3:32:16And I think that that's what the city is done and I want to thank the Council and their leadership for that, I think that.

3:32:21What will go forward in is will finalize this budget, and we will bring that to the Council on June 7 with a lot more detail and I will go from there and I don't know Sandra if you have any additional thoughts on that yourself.

3:32:35Sandra Dalida (Finance Director/Treasurer): No, not at all, I look forward to the next step and working collaboratively with all of the directors in city manager assistant city manager and presenting everything to FAB and city council.

3:32:50Mayor Quinto: It great.

3:32:51Karen Pinkos (City Manager): Thank you so much.

3:32:53Mayor Quinto: I wanted to also echo what city manager can pick us simple, my colleagues have said, I want to thank our FAB committee Thank you so much for all the work that you do.

3:33:06Our city very much appreciate all of that, and thank you to our staff and department heads and to city manager Karen pincus for turning the city around.

3:33:16it's a group effort and we're on our way and we will continue to do this so again Thank you everyone.

3:33:25The time now is almost 735 we'll return the next regularly scheduled City Council meeting is Tuesday June 7 2022 at 7pm and we will be open to all attendees in person or via zoom have a good night everybody.