Special and Regular City Council Meeting August 15, 2023

0:00:06Hey? We're ready when you are.

0:00:18The August fifteenth, 2023. Regular City Council meeting is call to order at

0:00:246 11 Pm. Will we have a quorum.

0:00:37Thank you. And next, please join me in the pledge of allegiance or a moment of silence.

0:00:45I'm pledging features to the plan of the United States of America.

0:01:06the next item on the agenda is teleconference and public comment instructions.

0:01:13thank you mayor, this hybrid meeting provides an option to participate in person or via zoom. Remote participants are asked to keep microphones muted when not speaking. If you are in person and logged into zoom, please ensure your device. Audio and zoom audio are muted to avoid any feedback. Close captions are available by participating in the meeting via Zoom for members of the public who wish to provide oral testimony. The mayor will announce the time for public comment on

0:01:37each applicable item. In-person requests will be heard, first followed by remote requests to speak

0:01:43in person. Request can be submitted to the city clerk by completing a speaker card. Remote request can be made by selecting the hand icon and phone request can be made by Dialing Star. 9

0:01:54instructions are provided on the meeting agenda, and will be displayed during each period of public comment

0:01:59meetings of the City Council are subject to the Brown Act, and are held for the purposes of conducting city business. The adopted rules of order and procedures specify that public speakers address the city council in an orderly and respectful manner, proceed their comments with their name and city of residence, and be respectful of time, limits policy prohibits yielding time from one speaker to another. That concludes my announcements. Mayor.

0:02:21Okay, thank you.

0:02:24The next item on the agenda is Council staff Communications city manager. Do we have any staff communications?

0:02:32Yes, thank you, your honor. Or karen Pink is the city manager. I just wanted to alert the council and the public on August ninth the city became aware that cybercriminals alleged to have taken data from the city of El Cerrito systems and are threatening to post the information online. Fortunately, the city systems are fully operational.

0:02:53We are working with third party cybersecurity specialists and law enforcement who are actively investigating this issue and monitoring the unauthorized actors, claims in the meantime, out of an abundance of caution, we've notified all active employees and past employees going back 10 years, providing them with free credit, monitoring, and information on additional steps they can take to protect themselves.

0:03:15If we determine that sensitive information is involved with respect to any members of the public. We will notify those individuals as well in accordance with all applicable laws, and if anyone has any questions on this, please, contact. Will Provost, who's the assistant to the city manager? His number is (510) 215-4318, and his address email address can be found on our city website.

0:03:39And with that, thank you, your honor, that's all I have tonight. Thank you, manager. Are there any announcements from any of the council members.

0:03:47Thank you, Mayor. First. I wanna acknowledge what happened in Maui last week and the devastation in the community of West maui we're thinking of them there, and we do not want any time. The community is level this way. There has to be lessons learned. And I think it's really important to acknowledge that. And to to think of the folks who are there.

0:04:09I also wanna give a heartfelt thank you to our recreation staff for a really successful summer camp year. My daughter was so happy. Throughout the summer kids stayed safe. Kids stayed hydrated. It was great and then also acknowledging that we're now back in school, which is fantastic, that definitely changes traffic patterns here in El Cerrito. Now that school is back in

0:04:34session. So I ask for folks to be patient, especially as there is construction going on in our community at the same time, and that we are here for you, so please reach out if you have any questions or concerns.

0:04:46Thank you. Any other Council Member Council member. Fidel. Ii just want to thank

0:04:54staff and our neighborhoods, and especially our police, and fire for our national night out effort across

0:05:00this great city. I had a great neighborhood event, where police and fire showed up, and questions and answers were given, and wine and cookies were provided, and it was just great to communicate as a community, and we just have to remember that it's good to talk to one another. Thank you.

0:05:18Okay. thank you. Councilmember Fideli. I want to report out that at 5 Pm. We held a closed session, and I have nothing to report at this time.

0:05:28A couple of things coming up on August nineteenth. There's a ribbon cutting for Freddie's lifestyle shop at noon at 7, 5, 2, 3, Fairmont Avenue. So that should be a fun event.

0:05:41and I also want to give a couple of thank yous as well.

0:05:45I do want to say thank you to Staff, really being very proactive about the hacking incidents and providing support and monitoring for all the staff.

0:05:58My daughter started working for the El Cerrito Rec. Department as a camp counselor, and you know it was a good learning mo moment for her to say, this is what this tells you to do, and so I appreciate that protection for her as well, I also want to say a special thank you to the keep elsewhere, fire safe members for applying for and receiving measure X funds to do fire break clearance on portions of the hillside. Natural area. So I think top of mind right now is fire safety

0:06:28because of all the events in in Maui, and looking at our topography and seeing that is very similar in lots of ways, and I think, as Council Member Fidel mentioned, like the National night out. It's partly it's about fun, but it's about getting to know your neighbors, so that we are all safer when we work together.

0:06:45So on to our next item is oral communications from the public. Now is the time for members of the public who wish to provide public comments regarding matters not on the agenda consent items and presentation items in person. Speakers can submit a speaker card to the city clerk and remote speakers should use the raise hand, feature to request to speak. Please remember to identify yourself and your city of residence at the beginning of your comments.

0:07:11The clerk. Please proceed. Thank you, Mayor. I'll first briefly announce that we did receive written comments for items not on the agenda tonight from Cordel, Handler, Joanne, Setka, Cathy, Terrisen, Gary, Pross, Su Duncan, and Scott tipping. Those comments are posted online with supplemental materials, and we're provided directly to council prior to the meeting today.

0:07:33And at this time we have one in person request to speak, followed by 2 remote. So we'll start with our in person. Request Sue Duncan.

0:07:50Good evening, Council, Mayor Staff. I'm Sue Duncan. I'm a resident of El Cerrito. Tragically, another deadly wildfire has occurred. It should remind all of us that what we saw on Maui, and before that in Coffee Park, Paradise, the Berkeley, Oakland Hill tunnel fire, and too many others that it can happen here in El Cerrito el Cerrito has the fuel, the Diablo winds and houses close together with vegetation in between.

0:08:16It should also remind us that once a wild fire enters and starts to burn neighborhoods, that it is next to or impossible to fight that fire with 81 mile per hour winds the Laina fire spread at one mile per minute. True, usually our Diablo winds aren't that strong, but the winds that fan the Oakland fire were 60 to 65 miles per hour.

0:08:39Keep in mind also that from the top of terrace drive above the Arlington to the Costco parking lot is 3.2 miles.

0:08:47That is not a lot of distance for file to travel rapidly. All of El Cerrito is at risk. It is imperative that the city find more funds now to maintain the recent work that has been done in H, and a creating a hundred foot defensible space from property lines. It must also fund more continued work of this sort. Thank you.

0:09:10Thank you. We'll now go to our remote request to speak. Starting with Ira. Share. Now, Ira, you should be able to unmute and begin your time. Now

0:09:20Ira Sharenow: take me a second. Here.

0:09:23Ira, are you there, we cannot hear you.

0:09:28Ira Sharenow: Yeah.

0:09:31okay, Ira, I'm gonna give you a minute to try your A figure out your audio issues. We'll go to our next speaker, and we'll return to after we'll go to our next speaker. Howdy, Gowdy! How do you should be able to unmute and begin your time now?

0:09:48Howdy Goudey: Okay, thank you. Good evening, Mayor and council members. My name is Howdy Gaddi and I live in El Cerrito.

0:09:54One moment we seem to be having technical difficulties cause we can also not hear this speaker. So

0:10:01I'm sorry. Can you not hear me?

0:10:08Okay, sorry. I'm not getting anything back from you. There is strange audio there's a delay

0:10:15with a very low audio level from from the past. So can you hear me for my comment at this time?

0:10:35Can anyone hear me?

0:10:40If you want me to redo you want me to redo this piece. Okay.

0:11:30Audi, can you please try your audio again?

0:11:33Yes. Can you hear me? Yes, we can hear you. Okay. Thank you for your patience. We'll go ahead and begin. You can start your time now.

0:11:40Howdy Goudey: Okay, thank you. My name is Howdy, Gaddy? And I live in El Cerrito. This

0:11:45comment is on consent. Item

0:11:487 e, the the smart signals and

0:11:52this sounds very promising. Sounds like a good opportunity to get some new

0:11:59technology in into the city. Under the program with the county.

0:12:05What I basically wanted to comment on is because of, you know, recent

0:12:11experience with the the cap and and the greenhouse gas inventory. It's revealed that there's been really strong growth in a per capita vehicles. Mild travel, vehicle. Miles traveled.

0:12:28despite all our efforts to

0:12:30divert to other modes and and reduce car use. And

0:12:36one of the

0:12:37frustrating factors is the lack of good data. I mean, is it basically the numbers that we're using in the cap analysis

0:12:45or sound like they're mostly just modeled numbers based on county averages and

0:12:51really not local data. And I think it's very important that we. as all new infrastructure goes in, we are taking advantage of the option to get

0:13:03information that can be tracked locally and provide local data over time. So we know how our efforts to reduce vehicle miles traveled and in and improve other modes of transit

0:13:17are

0:13:18are happening. And so it's really important that we don't miss any opportunities to

0:13:25gets. You know.

0:13:27counting detection data, you know, an anonymize detection but data logging that that gives us a good picture of what the different use of of modes around the city are, whether it's in vehicles, bikes, or pedestrians.

0:13:44So it sounds like that. This program

0:13:47already does include that, and I'm glad to hear it. But I just wanted to

0:13:51emphasize it as a matter of sort of

0:13:54general practice for new infrastructure that we we want and need this kind of

0:14:02capability to to track our local transportation trends. Because the

0:14:08the other data that's available just isn't sufficient to understand how things are going and and to be able to make the

0:14:17the improvements that we want to make over time. So I just want to make sure that in this program we make sure that we're getting that

0:14:24data shared with us. And we, you know, can count the different mode activities, and that other infrastructure that gets installed in the city has the same functionality going forward. Thank you.

0:14:39Thank you. Thank you.

0:14:45Okay, we're gonna return to Ira. Ira, can you test your audio? See if we can hear you? Can you hear me now?

0:14:52Ira Sharenow: Yes, we can. You can go ahead and begin your time. Great thanks, Irish shower. Now, El Cerrito, California.

0:15:00I have a lot of numbers for you. Please let me know if I make an arithmetic error.

0:15:05Recently I received some data from the county. Real property transfer tax revenues for July 2023 were $174,980,

0:15:1712 times $174,980 equals $2,099,760.

0:15:26The real property transfer tax estimates, 4,300,000. So 4,300,000, minus the $2,099,760

0:15:37seems to leave a shortfall of $2,200,240,

0:15:43as of earlier today, realtor.com is listing this one single family sale for the month of August.

0:15:50Zillow is 2.

0:15:52The St. Louis fed list the 30 year mortgage rate as 6.9 6%.

0:15:58The city started with a proposed surplus of, I believe, less than $100,000

0:16:03while assuming the real property transfer tax would bring in 4.3 not 4.3 million dollars.

0:16:11They're about 1 6 1.6 million dollars to propose one to up expenditures not included in the budget.

0:16:18If my math is correct. It seems like the city will have a general fund deficit of about $3,722,062.

0:16:27The citywide deficit may be close to 8 million dollars. Please let me know if you think any of my math is wrong.

0:16:35Today's housing report mentions the percentage of seniors is increasing. But the 2020 senior services budget was $709,117,

0:16:46and this year's budget is only 445,000, $374.

0:16:53That is, a cut of $263,743 in senior services, even though enhancing senior services is given as a reason to vote for Measure B.

0:17:06I recommend that the Council hold a special Town Hall

0:17:09and then Emergency Council session to deal with the budget, shortfall and restore senior services funding.

0:17:16Thank you very much.

0:17:19Thank you. Thank you. Our next speaker is Linda Kane.

0:17:25and there you should be able to unmute and begin your time now.

0:17:29Linda Cain: Thank you. I logged in in time to hear the presenter who talked about the devastating fire in Laina Hawaii, and where which I have visited one time one day, and it was a beautiful city, was a beautiful city, and and I thought it was very important comparison of the landscape and drought that they have to our situation here, with our our mountains

0:17:52pinning up us against the water, and and our our dry dry grass, and our wild land at the top of the hill. So I think it's really it is important for us to think. And she was so

0:18:04so clear about what we need to be doing. Obviously, I'm much more vague about that. But also, I wanna remind people, the huge amount of humanitarian need in the high enough for the residents. People have lost their homes and lost everything they had, and and many lost family members, and don't even know it yet. And and just please keep looking like Cbs news, for instance, listed several.

0:18:27Were the organizations that you could support to help people in the Haina, because I mean, I feel like Lina. Maybe it's not officially our sister city, but I feel in many ways it could be our sister city, and we should help them try to recover. Okay, thank you.

0:18:42Thank you. Thank you. Our next speaker is Mariella Sandine Marielle. You should be able to unmute and begin your time. Now.

0:18:50Mariella Sanding (she/her/hers): Hi! Everyone. Can you hear me?

0:18:51Yes, we can.

0:18:53Mariella Sanding (she/her/hers): Great. Good evening. My name is Mariella, and I'm the Coordinator for the Contra Costa County Meds coalition fiscally sponsored under Bacr here in El Cerrito. I'd like to provide a comment on the consent calendar for item 7 B. Thank you to the El City Council for considering a proclamation recognizing August 30, first, 2023 as international overdose Awareness Day.

0:19:18Unfortunately, over 98,000 lives have been lost to overdose here in the us over this past year, and this number continues to grow

0:19:27younger, and younger individuals are being impacted by fake or counterfeit pills that they are receiving through unlicensed sources, and we are losing the young generation to this epidemic when we lose an individual to overdose it not only affects their friends and family, but it affects the community as a whole.

0:19:45A huge contributor to this issue is Fentanyl, the strong synthetic opioid commonly found in counterfeit pills. No community is immune to this issue. Fentanyl is being found across Contra Costa County's overdose deaths, and it's a national health crisis. Therefore we need to treat it as such.

0:20:02This day is meant to recognize those who have lost those lives we have lost, to overdose and to break down stigma associated with substance use disorders.

0:20:12The meds coalition is doing what we can to educate the community about this issue, and to get every one to understand that this disorder can be treated with proper intervention, and prevented through community awareness and education. We call on all of you to have conversations with your loved ones, especially our youth, so they understand the likelihood of overdose simply by taking one counterfeit pill.

0:20:36We hope that on international overdose awareness day you keep in mind families and friends that have lost some one close to them, to the unfortunate epidemic of drug overdose. Thank you again to the El Cerrito City Council for allowing me to share about the importance of international overdose Awareness Day this evening, and your continued support of the men's coalition's efforts.

0:20:59Thank you, Mayor. That concludes our request to speak. Thank you. City clerk. Our next item

0:21:08is the Pg. And E. Presentation. May we have the presentation, please?

0:21:31Good evening. My name is Edna Paris, and the local government affairs representative for El Cerrito, for Pg. And E. And I want to introduce my colleague as well as government first manager. So you all should be driving my presentation

0:21:44doing this presentation will be giving updates regarding activity within El Cerrito. But please feel free to share your questions and comments

0:21:54as they come up during the presentation. Towards the end of the presentation we'll have open discussion so hopefully, we can have a robust conversation during that time as well.

0:22:04But that will proceed next slide. Okay?

0:22:07What says showed before was a preview of what we're gonna cover. And right now, we're covering capacity.

0:22:15So in terms of capacity for new customers, we have a robust process for ensuring there is sufficient capacity for new support customers.

0:22:25When a new customer requires electric power. the customer sends us their application.

0:22:32and our planning department assesses the application with the current capacity

0:22:37for large new customers.

0:22:39We will perform large load studies for a deep analysis of the new demand on existing supply

0:22:47if needed.

0:22:48We will then reinforce and upgrade our system to ensure that it can support the new capacity demands

0:22:56next slide.

0:22:58So to understand capacity is important to see the issue from a con from a community perspective. That's the reason why in this slide, we're showing you currently to Pgd projects that are occurring within the city limits of El Cerrito.

0:23:13I'm Gonna pause there. So we could

0:23:15look at this status. So currently we have 2 substations. Where which are we are doing in terms of upgrading as well as replacing. So we could have a reliable system. I also wanted to pause and to offer any comments and questions if there's any other projects. So we could, we at Pgd could be updated.

0:23:34And we understand, though, there'll be a level of coordination between our staff and your staff to understand whatever big projects that projects are coming up. If you don't have the projects in top of your mind. We could definitely discuss that throughout the throughout the presentation, or afterwards.

0:23:48Yes, quick. The north side of El Cerrito is serviced by Richmond substations. So if any updates on those as well, we've had a lot of impacts on the north side.

0:23:59Okay.

0:24:00thank you. Questions on this side.

0:24:02I would like to know where the Elsrido g substation is located.

0:24:07I'll have to do a

0:24:09call, my colleague, to see if she could answer that.

0:24:15Okay, we'll get back to you on that. Okay, thank you.

0:24:23Is this, the larger substation?

0:24:29G substation is a larger substation in town

0:24:37on Corla

0:24:40and Schmidt's between those 2 streets. Is that the is that the substation? It's the larger one in town. I'm gonna take your word on the streets. I'm sorry.

0:24:53Okay, okay. thank you.

0:24:58Okay, good slide.

0:25:01So

0:25:03in light of what we discussed. So what was being converse early on during council session, we want to go over Wildfire risk and with the steps that we've been taking next slide.

0:25:13So I wanna first apologize. In your council packet. We had an inaccurate map. We're actually the log maps. I want to apologize for that. And currently, what's being beamed over into the slide presentation is the current map.

0:25:28So

0:25:29on the actual corrected map that's being shown in the presentation.

0:25:35We provide a map here of the high risk areas in and around the city of El Cerrito. Those areas are noted in dark orange color.

0:25:44So the first step in working to reduce wildfire risk is to identify where the potential threat is greatest

0:25:51and to identify high risk areas. We use advanced machine learning based on risk modeling and technology lever leveraged from other fire experts and entities.

0:26:03So as conditions continue to evolve when we're talking about weather patterns. So will the tools and data that we are using to assess whether areas high risk not

0:26:14next slide.

0:26:17So since we launched our community wildfire safety program, we have reduced wildfire risks from within our system. We have accomplished this through a combination of ongoing safety programs, long term improvements and use situational awareness tools. We have layers of protection in place to prevent wildfires. In several ways.

0:26:38These layers include strengthening the system with stronger poles and covered power lines.

0:26:45keeping trees at a safe distance from electrical equipment. utilizing high definition, cameras. utilizing weather stations and or data undergrounding 10,000 miles of power lines

0:26:59enhancing safety settings to stop wildfires before they start, and implementing power, safety power shut offs as a last resort during dangerous weather conditions. So a combination of these measures working together to, we tried to strive or aim, to strive to provide customers with multi-layers, UN holistic approach towards the layers of wildfire protection, not just for customers, but also for the larger community for El Cerrito

0:27:24next slide.

0:27:26So we're gonna be touched upon power safety settings enhance power safety settings, which we also call Eps

0:27:34next slide.

0:27:37So Eps is essentially our way to prevent admissions.

0:27:42It helps us stop potential wildfires before they start. and you can see here in this slide safety settings and action.

0:27:49So in 2021, we began implementing new, more sensitive safety settings to address extreme drought conditions that we are starting to see throughout our service area.

0:28:01One of the key features a Eps is to automatically turn off power within one-tenth of a second, if there is a hazard, so a hazard, for example, would be a tree branch striking a power line

0:28:14that will quickly turn off power. Then there is trouble that helps us when there's trouble identified enables us to use patrols to identify the damage within that power line.

0:28:26These safety settings are proven. Wildfire prevention tool. Last year there was 68% reduction and CPU. C. Will reportable ignitions with an Eps capable power lines and Hi fired threat districts.

0:28:40This is compared to the weather, normalized between 2,018 to 2020 average numbers. You also re observed a 99 reduction in ignition impact, as we measured by far size relative to the data that we've been using and utilizing as a base between 2,01820 20

0:29:00next slide. So just to illustrate as what I was describing. Here's a visual of how and pre pretty much how Eps says protects communities from the hazards.

0:29:11So if a pow the powers turn off, due to a houses such as a tree branch striking the power line. We then sent patrols, whether it's on foot by truck, and we also utilize our assets, such as helicopters.

0:29:26We try to do these patrols during the days to ensure safety.

0:29:31but also keep in mind, as the system is being inspected for damage.

0:29:36Customers may experience unplanned power out issues next slide.

0:29:42So since I've touched okay, since I touched upon Ps

0:29:49public safety power shut off essentially, and what we is, what we utilize as a last resort. So high winds can cause tree branches and debris to connect, that actually will connect to energize power lines, damage, equipment, and cost qualifier.

0:30:05You see, PSPS. As a way to fall back within projected severe weather patterns that we could see as a threat, especially for the city of El Cerrito.

0:30:17for for the safety of our customers and communities, we utilize Pcps as way as the last resort. But we also work with local agencies to notify customers and communities as well as yourselves.

0:30:30So, even if severe weather conditions so miles away from El Cerrito.

0:30:35We may they may. Your committee may be affected by Psp. Electricity

0:30:40incidents, because electricity travels miles and miles on the power line from the generation source. And so a Psp has shut off might be needed for a larger region

0:30:52next slide.

0:30:55So what are the conditions that we look at when we implement a Psp.

0:31:02so when we initiate Psp, as we look at several factors, such as weather forecasts and other other factors.

0:31:10so one of those factors is low humidity levels of 30%.

0:31:15And below that forecasted winds of high winds which could reach 90 miles per hour or wind gusts that could be 30 to 40 miles per hour.

0:31:25We also account for red flag warnings declared by the National Weather Service. We also have Sas dry material on the ground.

0:31:33mo, low, low. Mo, most, you're within vegetation content and real time ground observations where we leverage data from a holistic approach from data sources that we could get a better picture of whether Psp needs to be initiated.

0:31:47But we have to keep in mind that every wildfire season is different is different. The conditions change. and what we've been seeing in the news not just over time, but almost every month, if not every year.

0:32:01next slide.

0:32:05So most importance is PSPS. Impacts communities.

0:32:10We also have a holistic step in terms of notifying customers as well as

0:32:16El Cerrito.

0:32:17So to keep customers and communities inform, Psp. Notifications will be provided to agency partners as well as customers, and, as you can see within these milestones, this is what we follow.

0:32:29These notifications will be provided via call text or email.

0:32:3524 HA day, 7 days a week, as needed.

0:32:39So for customers who are not Pg. Unique account holders. or want to receive notifications

0:32:45for another location besides a Primer residency. We do have address alerts which are available in 16 languages via phone call or text, which here you can see on this slide there is a website

0:32:57which I can't see cause my eyes a little straight, but I believe it's Pgcom slash, slash address, alerts, address alerts being one word.

0:33:08But we also want customers to be informed. We want to empower customers with information, so to ensure customers have updated information. We are encouraging our customers, and of course, working with you as partners to plan and prepare, as we encourage for them to review the contact information we have on file by visiting another website which is not on this slide. Pg, and pge, my wildfire alerts wildf, my wildfire alerts being one word.

0:33:37We also provide Psp updates

0:33:40through our website@pgande.pgecom. We also work with local news and radio to ensure that in such information is given to them

0:33:49as well as we make. We ensure that social media information is out there into the web next slide, please.

0:33:57I have a quick question on that. If we have signed up for Psp alerts in the past, are we automatically and continue to be enrolled?

0:34:06Yes, you are so as especially as elected officials. Every year we work with our partners to ensure that the information for elected officials and stakeholders is updated. So sometimes you might see, like an email from us, indicating, please update your information. So that's part of one of our many mechanisms to make sure that information

0:34:27contact information is accurate.

0:34:30Thank you. I have a question, Mayor.

0:34:33and this might be a. A. A point of learning for me is the Psp. Separate from the notification system that you all use when there is a weather related outage. Is this, is this completely separate?

0:34:48So so by weather related outage, you mean like, if there's an unplanned like heat related outage or a storm outage. Yeah. So so if it's an unplanned outage, like when we had all those we had like 15 storms in the beginning of the year. There's no notifications for that initially, because we don't know that the outages occurring, we do work with the media and with our partners to to help folks prepare for whether, like we actually have a notification out right now to prepare for the heat that's coming

0:35:17the Psp. Because we can anticipate it. Right? We have all of these different factors that we're looking at. We give notices up to 2 days in advance leading to the event, and during the event with the Psp. During the unplanned outages, you will get notification

0:35:34once the outage has already occurred, saying that we're aware we're working on the issue, and then, when the estimated time of restoration will be so with the Psp. S. The thing to note right is, you can sign up for address alerts specifically so like, if you have a kid who's in school, you have an elderly parent, you can sign up to get alerts on like

0:35:53their school or the facility, the other alerts, the weather, the outage alerts that are unplanned, or for your home. So you will get outages for your specific account.

0:36:04Okay, yeah. I wanted to make sure the differential between the the pre planned and the weather related. Because we, especially in those like you said in those storm earlier. I've I've seen every type of bad thing that can happen with those notifications of possible. So I just wanted to make sure I had that straight?

0:36:21Yeah? And we, you know, we ask customers to just make sure that your information is updated because we change our cell phone numbers or we change our email addresses, because that's how we notify folks. We also post on next door. We work with media, and we will send out notifications to our stakeholder, so, like the elected officials, will get notifications from the local government affairs reps, and then our public safety specialists work with your public safety officials to make sure that police and fire also notified.

0:36:48Thank you.

0:36:51Okay, next slide. So

0:36:54so, more importantly, want to close out this presentation by looking at some of the customer resources, especially those that will be very much invalu valuable for members of the community announcer. We know.

0:37:07So for both Eps and P. Sps support, we have several programs to support customers who may need backup resources. As you can see here, these programs are detailed as well as their email addresses where community members could go into and find more information. So for this year and 23, we made changes to program qualifications to expand the reach of our some of our programs, especially those who are frequently impacted by safety outages. To prevent wildfires.

0:37:38we expanded access to our portable battery program to include customers who, self certified, certify as vulnerable, vulnerable, and have assistive technology, durable medical equipment, and those who have been impacted by allergies

0:37:51on Eps protected power lines

0:37:54for the generator and battery rebate program. You have removed the requirement that a customer must have been impacted by a Psp outage

0:38:03which allows more access to customer support. Customers can find in more information by visiting the links that are on this slide

0:38:13next slide.

0:38:16So we also have various portals online that

0:38:19the members of the community could look at access and learn.

0:38:23Customers can stay connected through our online resources, including a wildfire safety page. Our partnerships with 2, 1, one as well as being able to download an app called reported app where they can access our Wi-fi safety videos. These resources are easy to access

0:38:40and allow customers to quickly find support. Of course, there might be some barriers and accessing the Internet. So that's the reason why in the bottom we have a hotline that members of the committee could contact in the slide.

0:38:55So just to let you know if there's any additional information about these resources, we would be happy for the city elsewhere to reach out to us that we could partner up so we could further empower the residents of this community.

0:39:09I'll I'll add one thing, so they're reported. That's like cities have like, see, click, fix. It's a really great app, you know. Folks will call you all if they see like a poll that they think is leaning or tree. So this is a great resource. So customers

0:39:23can take this app. They can take a photo. It'll go to the department within Pg. And E. That it needs to go to, and then someone will respond to them. The only thing we ask if it's like a true emergency. Don't wait like, call us, and let us know if it's an emergency. But if it's something else definitely, they're reported up is great, because the picture is worth 1,000 words

0:39:45right next slide. So I know that was a lot of information that Sarah and I provided, and pretty much present it for the El Cerrito community. But

0:39:56we would like to, you know, open up for open discussion questions and comments.

0:40:01Thank you. Thank you for the presentation. You're welcome Council members. I see. Council Member Fidel, you have your thank you. thanks for all you doing for constantly evolving to meet the needs that are changing as well. Ironically I told the Council and

0:40:17closed session. My power is out now, and my wife called Pg. And E. And hopefully they're on their way, so I'll let you know after council meeting if they showed up.

0:40:27But you mentioned a couple questions. You may or may not have the answers to you mentioned texting and emails.

0:40:34We got a letter, a le actual letter in the mail saying that the power will be out this Thursday from 9 to 4 to work in the area. Do you know what kind of work that is?

0:40:46So we send out letters for any planned work that we're doing? So it could be anything variety of things. If we're doing a poll replacement. If we're doing upgrades, if you offline, give us your address, we can look into it and tell you what the work is, or those letters also have a phone number that actually goes to a person. Who's the outage coordinator for that particular outage, and they can answer questions otherwise.

0:41:10And I can follow up with you on that, too. And maybe this is something for our fire department. But last week there was a fire under on Moser underneath the power lines, and I don't know if you have an Update

0:41:23that fire happened, or there's a lot of neighbors out there on Terrace looking at it, and

0:41:29our fire department was adequately resolving it.

0:41:45And just so that, you know, I mentioned earlier. Like there is A. We have like public safety liaisons. A lot of them are retired firefighters, and they work directly with the fire and police in local cities.

0:41:57Yeah, I worked with Les Putnam for a while. So the map that you showed us with the high fire risk area is that coming from the State high fire.

0:42:09That is the acronym. I always forget the ha! Yes, that I'm looking to my folks because it's that that 4 letter acronym, that very high fire.

0:42:17is it? Essentially, is that data coming from the state around what's identified in El Cerrito as being a high risk area? Yeah, I believe that's a combination of data. But definitely, we are relying on the state information that they are providing with us. So we use we pull data from the state resources. And then we have our own resources, and our maps aren't exactly like their maps. But they we pulled that up from several different resources to create our hifier. And you were talking about Hfr, a high fire risk area.

0:42:50It doesn't necessarily.

0:43:12El Cerrito was known for having telephone polls. It's really it's if, even if you look at our city logo, if there was telephone polls all over it, that would be El Cerrito. So one of the questions I have is, what are the plans around undergrounding utilities, the complexities of that? And if so, are there plans for that in El Cerrito? And if so.

0:43:35are you targeting those high fire or high risk areas? Just a little bit more information about undergrounding? We get this question often particularly cause of all the commercials with our CEO. So we are UN. So we have a plan to underground 10,000 miles of line. But we we have a risk model that determines where those lines are and they are high fire risk area. And there's different tiers.

0:44:00tiers 1, 2, and 3 of high fire risk area. So the original 10,000 miles of line are going to be in our highest fire risk area, and there'll be places like more up north places that have

0:44:12had fires already and burnt down. So we're targeting those areas. First, there is a plan that has been filed with the Cpc that we're happy to share with you that is going to be filed. That'll be a 10 year. Look ahead on those original 10,000 miles of undergrounding. That being, said El Cerrito. If they're not in the list now, does, that doesn't mean they can't be in there later, as we continue to expand that program because

0:44:36the safest way to prevent fires is to do undergrounding. But we're starting with this first and these highest risk areas first. Thank you.

0:44:46During the drought season and the fires through the years I was in contact with. Our local rep.

0:45:05So. But and so that's where I got my information all the time, can can we still have that relationship with our local rep or Pg and E at this time? Because I it it it gets frustrating when when you can't get the right answer, or get that in time for our constituents when you're using it

0:45:28so absolutely. I. Your local rep is on maternity leave, and I can say that she just had her beautiful baby girl that I had to got the opportunity to go see? This week. Ed Paris, who's here with me today is he? Is your local rep from now until the end of the year until Claudia comes back from maternity leave. If you don't already have his contact. Info! We'll leave it. But you'll have access to him via cell phone email. And he is who you be elected

0:45:53officials. City manager would call directly and then we do have customer resources where we ask customers to to call. There's need for customer support. But yes, you will always have a local rep to reach out. Appreciate, cause. Our friend Trevor breed was our local rep for many, many years, and and she was always, she knew on the top of her head what was going on, and and kept us abreast on everything. Can

0:46:17can you possibly leave a stack of cards for all of us, and our city manager, city attorney and our fire chief employees have enough cards, but II do have

0:46:28contact information for all of you, and of course, as Sarah mentioned, I'm here till the end of the year, but I'll still be in, you know. Be able to in contact, as you may see in the card, it may say stakeholder, manager, that's my other hat that I wear on the state level. But I am your rep. So alright. Thank you.

0:46:49Council member. I can. I can forward his contact information to everyone. and you can always reach out to me if

0:46:58thank you. I have a question going back to the Elstree G substation. Can you tell me what kind of work is happening there?

0:47:06It's a very, very old substation. So I'd be interested to know, like what's changing. And yeah, we're doing some upgrades. So we can get you more specifics on the details of what that work is. As we're looking at capacity and reliability, we're taking looks at all of our substations and transmission towers and just keep keeping stuff so that it's working. You have reliability. But we'll get details from the Ops team on that.

0:47:30Great. Thank you. There aren't any more council questions. Are there any questions from the public.

0:47:41We do not have any cards. and I am not seeing any hands requesting to speak. Mayor.

0:47:48Thank you so much for the invitation to come present, we appreciate it.

0:48:00Okay. The next item is adoption of the Consent calendar, which includes the following items.

0:48:09crime Prevention Committee appointment of John Basher. international overdose awareness, day proclamation.

0:48:16resolution, and support of exonerating Port Chicago. 50 final subdivision map for one lot. 6. Residential condominium subdivision at 601 Lexington Avenue

0:48:28funding agreement between the Contra Costa transportation, authority, and city of El Srido for cost, sharing commitments to design and construct the county. Wide smart signals, project

0:48:39amendment to professional services. Agreement with Chris and Company for temporary finance staffing.

0:48:45monthly disbursement and check register report for April through July 2023 and FY, 2022, 23, fourth quarter cash and investment reports.

0:49:01Are there any questions or items that we would like to pull? I have a question on, item D,

0:49:07okay.

0:49:11anyone else I would like to pull. Item E,

0:49:17and I have a question on item F and item H,

0:49:27okay, so let's start with Item D. And thank you, Mayor, a quick question on the resolution. It has the date of a meeting.

0:49:38of a date of approval. October nineteenth, 2023. I don't know if that is

0:49:48looking for the exact.

0:49:51My apologies. This is item D,

0:49:53item d. Yes.

0:49:59So I'm just looking at. I see an adoption date of August fifteenth on the Resolution, whereas the tentative parcel map for the project was approved by the L. 3, or planning commission on October nineteenth, 2,023

0:50:21that was the type of it should have been October 2,000 twenty-twober, 1920 22.

0:50:27That's that's actually what it says. Yeah, they're more than one reference, because I'm seeing on the first, second, third, fourth, fifth, sixth, seventh, whereas I see October nineteenth, 2,022

0:50:38in mine. So in the app Planning Commission resolution. So it's in the actual resolution, actual resolution itself without meeting commission resolution. Okay, any commissioners that was electronically signed

0:50:54that they do see that there was a typo on the date.

0:51:00Okay, we'll work with Shawn, the liaison to get that fixed my apologies. I was looking at the Council resolution. Oh, no, it's okay. Just want to make sure that as long as that edit is made we're good to go.

0:51:12Okay on. Item F, on the professional services. Agreement with Christian company can staff confirm that the cost is fully covered by current vacancies. Yes, this is able to be within the budget, using salary savings

0:51:28great and on. Item H,

0:51:31I know that we talked about this fdic thing before. But can someone from Staff explain to us how our funds are being kept safe since we have 10 million dollars at Mechanics Bank? Yes, so the city's signed agreement with Mechanics Bank provides 110 insured deposit protection.

0:51:50Thanks very much. So.

0:51:55Is there a motion to, did you? Did someone say sevene? Yes, I wanted to pull that item. Oh, so you're going to further ask questions on it. Okay.

0:52:05so is there a motion to approve? Items not pulled? That.

0:52:11hey? Is there a second? Okay. Move by council. Member Fidel. Second by May. Councilmember Quinto. All those in favor, please say aye. Any opposed motion carries.

0:52:23Okay, so I have questions about item E,

0:52:29and

0:52:31I've asked Staff to give me some additional information. The questions I have are really not about the system per se. But I know that we had a significant amount of community input, when we talked about the license plate reading cameras. So what the system here with this program is even more cameras that have much more ability to capture more information and more

0:52:59more than just license plates. And so it concerns me that we don't have any detail on data collection. How long it's held, who has it, how it's shared, and who's whose data this is

0:53:13good evening Council. Mayor Council members. My name is Eva Ortiz, on the city's public works. Director also joining us via Zoom is John Huang with the Ccta. He's the director planning who's leading the

0:53:28countywide smart signals project on behalf of the Ccta. Just briefly the Ccta. As part of the county. Wide smart signals project will be upgrading traffic signals and associated communications at over 300 traffic signals in the county. This includes 7 intersections in El Cerrito, on Richmond Street and San Pablo.

0:53:54Basic scope of the project includes upgrading legacy. Traffic signal controllers, detection systems to improve detection of pedestrians, bicyclists and vehicles make the signals themselves smarter.

0:54:07And it is collecting some data

0:54:09currently, the the system that the Ccta is designing is not recording video. It's just live video feed that the cities can use as needed to monitor real time traffic conditions. There is an agreement that is will be developed in the future for operations and maintenance that will include details of the

0:54:34Sha sharing of data and video data. But the intent right now is not to record any data. over all the city owns the signals, and we will continue to own and operate the signals and the data. So it really will be the the city's decision on who we share the data with

0:54:56but the intent is to share. But that will be part of a future operations and maintenance agreement that would come forward to the Count Council as the project is designed. But if you have additional questions, John Huang should be on zoom. Yes.

0:55:14thank you. Thank you very much. So can you tell us about how we will be able to understand the system, and that we we by approving this today are not de facto approving the system about

0:55:31the data in the collection of the video data.

0:55:34I'll start it, John, if you can add but there is a provision in the agreement discussing that a future operations and then maintenance agreement is pending. It's on the second page of the agreement. But, John, if you can add to that as well, thank you.

0:55:49John Hoang, CCTA: Yes, so thank you. Good evening, Mayor Council members, John Hong, director of planning for the Contra Costa transportation authority. Just to reiterate, reiterate some key points that

0:56:03you're a public works director made. The cameras are out there live streaming. We're not recording anything. And that goes across to the other 19 jurisdictions. Also there will be a feed that can be fed to the city. It could be at a desktop or could be at a transportation management center. It could be this, elaborate as the city would like. But there's no recording. There's no data to to record.

0:56:35And then who controls the cameras? The Pan tilt zoom features of the cameras?

0:56:40John Hoang, CCTA: Right? So that's that's strictly at the discretion of the city. So besides the pan till zoom cameras, there are option for fix cameras so pant till zoom will probably install one at each intersection with a fish eye, so that a city staff can look at a different intersection. The whole intersection at once, or zoom into different the leg of the intersection. Or there's a fixed

0:57:08camera option where there's 4 cameras, one pointing down east leg of the instruction. And again, operation is solely at discretion of the city, and it could be between public works could be your first responders if they they care to investigate some certain areas that the Li I'm doing the live feed or during congestion but there'll be

0:57:34There will be

0:57:36instance where Ccta will need to take over the control as far as the camera. Only during a pre-determined instance scenarios. For instance, if there is emergency

0:57:54events on on the adjacent freeways, where

0:58:01Ccta staff at the regional level can assist, can assist the city on managing the traffic. Then we can certainly

0:58:10work with work with the city to look at certain areas of the of the street. But but overall, I would say confidently, 99.9% of the time. We won't even be operating those videos, those Pt's at all.

0:58:29And then

0:58:30you talk a lot about video analytics systems in the report, what are those? And then that videos generate data. And you collect that data. How does, how does what is that system?

0:58:43John Hoang, CCTA: Okay? So video analytics analytics is is another camera out there. So not that, you know, I heard you mentioned the license later, we have a camera. So we, we will deploy another system out there that can Pre can. Our vision is. And it's really based on the technology that's available

0:59:05at the time of the design. And we, we wanna deploy cameras out there that can analyze

0:59:15regular traffic patterns. And those cameras can actually.

0:59:22if we select the right system, the right technology can predict or prevent the incident. So for example, if

0:59:31there is a crowd in a section where there's pedestrian crossing and there is a a

0:59:40the the the light is green on the opposite side, for instance. Sometimes

0:59:45you have red light runners, so these analytics will

0:59:51capture. Will. It will analyze those instances on on a live so they'll they'll they can narrow down

1:00:02when there's incidents

1:00:04what occur, and then can they can predict in the future when it the what? What needs to be done? What needs to be adjusted

1:00:11to prevent those incidents in the future?

1:00:17Thank you. I think that's that's really helpful, I think, my concern is that in, you know, these systems are getting so intrusive.

1:00:25and that we just take it for granted that they're okay.

1:00:29And I think that that what I don't want is to

1:00:32to have data collection issues later. I would rather raise them now, and I know that you know the the final agreements are to come. But I just want to raise a really strong concern about how these you know.

1:00:45these are powerful cameras.

1:00:47We. We had such concerns about the just cameras that were looking at license plates. I think if people understood what these cameras could do, there would be more, more concern raised. So I see I just wanted to thank John and

1:01:03just report back that these are very futuristic and hopefully can anticipate, especially from pedestrian and bike safety, which has never happened before. Situations that can change the the lights so that the safety will be there. And II just wanted to congratulate Staff for

1:01:24helping to shift some of the emphasis and implementation of this program to Richmond Street. I mean San Pablo Avenue did have some of our programs, and our lights are already amended there. Richmond Street needed the attention. And that's part of what's been planned for that.

1:01:41So I'm I'm very appreciative of that, and and we will follow. We will continue to ask questions about that. I did have. Can I ask one question to Staff as well? I noticed in in the analysis we talked about. Our matching is.

1:01:55we have a hundred 20,000 in the budget, and they're asking for a hundred 1,000 to match.

1:02:00What what does that leftover money do? Does it stay there that we need to keep it for the next time. There's another upgrade on this, or what

1:02:12the

1:02:13Ccta has provided us a cost estimate for the project. Cost, and so it may vary, we may want additional elements, additional items to be included as part of the scope. So that gives us some contingency to expand money.

1:02:33Thank you so much, John. Thank you for the extra. Oh, I'm sorry we have one more question putting on my professional hat. This in the public sector technology space. What I think is really important about this project is that.

1:02:47yes, these cameras are big. But in the sense of being concerned about Big Brother, this is going to be controlled by the city, and I think that that's a really huge advantage. So as far as when it comes to the point when we have that conversation around the vendor and vendor selection.

1:03:04that we can control that data, I think that's the most important thing. So that's what I find very advantageous about this partnership is that we're securing the funding so that we can have this and then have that discussion, and then we own it. It's not

1:03:18other agencies who then have access in on that data.

1:03:22Thank you, and thank you again, John, and thank you, Staff, for for this report. I think you know it is a great system. I just don't want to lose track of where our data is going.

1:03:33Okay, so do I have a motion to approve. Agenda. Item number 17.

1:03:42Moved by council, Member Fidel, second by Councilmember Pinto. All those in favor, please say aye. Any opposed motion carries.

1:03:52Yes.

1:03:56The next item is public hearing contract amendment between the city of El Srido and the Board of Administration of the California Public Employees. Retirement system. Calpers related to employee members of United Professional Firefighters Association, local 1, 2, 3, 0.

1:04:16Can we please have the staff report?

1:04:18Good evening, Mayor and City Council. My name is Shannon Bassy, Senior Human Resources. Analyst, Nhr.

1:04:27I have before you this evening a request to conduct a public hearing, and upon conclusion, adopt a resolution of intention to approve an amendment to the contract between the city of El Cerrito and California public employees. Retirement system also known as Calpers.

1:04:44Tonight's Council meeting will also serve as the first reading of the proposed ordinance that kelpers requires. In order to finalize the proposed contract amendment.

1:04:53As you may recall last March of 2023 City Council approved Resolution 2023 19. Adopting a new Mirandom of understanding between the City of city of El Cerrito and the United Professional Firefighters Association, also known as Local 1230.

1:05:13The resolution contain mutually agreed upon language to implement government code section 2, 0 5, 1 6 for cost, sharing. As long as calpers, rules and regulations would allow the city to do so.

1:05:27the amendment would affect local 1230 Calpers members who are currently cost, sharing meaning. They are paying a portion of the city's employer contribution.

1:05:39Once the Calpers Contract amendment is in place pending your approval, the portion of the employer share that is being paid by the employee will count towards the employees service credit on file officially with Calpers

1:05:54having the official service credit on file

1:05:59on behalf of the employer is beneficial. In certain scenarios. That may be unfortunate or unexpected, such as death during employment, or when an employee wants to leave Kelp's, but is not fully vested or eligible for retirement.

1:06:17Again, these are very specific, certain situations that would apply, but does provide employees with this benefit. So with that, said, that concludes my report, and I'm available for any questions

1:06:32in council.

1:06:34Okay?

1:06:40So

1:06:43the public hearing is now open in person, request to speak, can submit. Speakers can submit a speaker card to the city clerk and remote speakers can use the raise hand, feature to request, to speak. Please remember to identify yourself and your city of residence at the beginning of your comments, so you could please proceed.

1:07:02We do not have any requests to speak on this item. Here

1:07:07do I have a motion to close the public hearing move by Councilmember Quinto, seconded by Mayor Proten. Red Nick.

1:07:16could you please call the role all those in favor? Please say, aye, any opposed motion carries? Okay.

1:07:24though the public hearing is now closed, do I have. I have any further council comments.

1:07:31Okay, do I have a motion to approve the resolution holding the first reading and waive further reading of the ordinance.

1:07:38And do I have a second second

1:07:42move by Mayor Mayor protem rudnick. Second, by Councilmember Weissinger. All those in favor, please say aye. Any opposed motion carries.

1:07:53Okay, thank you. The next item is fire hazard abatement.

1:08:00Can we? Please have the staff reports?

1:08:10Good evening, Mayor and City Council. I'm here today. To for the list of properties for a meeting right now, currently, there are 21101 Arlington Boulevard. They are currently on a work plan. The contractor will be starting work tomorrow we'll be following up with that as well.

1:08:29And then there's one other vacant lot on terrace that we will be abating. My request is to move forward with the city for and the council members for abating these properties. Thank you.

1:08:40Okay, thank you for that report.

1:08:44Are there any questions from council

1:08:48councilmember? Fideli?

1:08:49I just wanna thank the fire department for following up on that property. It's a very big critical

1:08:58disaster about to happen, and neighbors are concerned about it. So as maybe you know, I was driving the other day and saw you guys walking around, and and the folks from Measure X coming as well of maybe speaking additional measure X funding to to come up with the program to respond to that. So I'm very appreciative of that.

1:09:17And I just wanted to say on this abatement.

1:09:20a lot of folks have mentioned Maui tonight. I, as a young man as a middle-aged man and as a senior citizen. Last

1:09:27couple months went to Maui. and it's important to me, my daughters in Hawaii.

1:09:32and that disaster has to be an ongoing image for this city, as we've all acknowledged here, and it has to be that why, we're reminded that we need a evacuation drill.

1:09:44We need to be things to do to prevent

1:09:50such a disaster. Red Flag Day. These are things we're talked about.

1:09:55and I'm glad that we're working regionally with our other cities in the hills to see if we can come up with a regional approach

1:10:02to make things better and more coordinated in this area. So thank you very much. We really appreciate it. And we can't be too too prepared. Thank you.

1:10:12Pages and pages

1:10:27needed to work on their properties, and just to have 2 at this time of the year give. Our our residents have stepped up, and and they know the importance of cleaning their yards and and the brush and and I want to say, thank you to our fire department for being proactive on this as a member of the Environmental Policy

1:10:50Committee

1:10:51and with my colleague, the Longtime Mayor of Santa Rosa. We spoke about the similarities with El Sabrita and the city of Santa Rosa

1:11:03similar topography, and and remembering that it was the Flatlands in Santa Rosa that burnt down, and they had similar hills and they didn't think that that can happen. And it did, and that can happen here in El Cerrita. So I respectfully disagree with that the map that they showed us at Pg. And A. And I see the whole city as a fire danger zone

1:11:26living in in you know, sort of the Flatlands, and and just the next street up you have a huge hill there on the north side.

1:11:36you know, we we have a lot of

1:11:39that still needs to be removed. I'm looking forward to having the country club be proactive and and work on their properties within out or get rid of the the many eucalyptus trees that are there, and hoping that they will do that soon. We don't want to have another Maui and another Santa Rosa. So but again. Thank you for your service and and your crew, and and thank you to the residents

1:12:08that we weren't danger.

1:12:38So II thank them, I think, are the community members. I think our fire department for listening to each other and working together and hopefully, we can continue to do that.

1:12:48And yes, just a follow up on this. So this is an ongoing process throughout the year. So we're gonna have multiple tracks for this. So we do complaint driven. And then sometimes, like one of these addresses, this is the second time cause the weeks grow back quickly, so this will be ongoing, and there will be 2 or 3 different side tracks going with properties that we will be continue to abate throughout the year.

1:13:13Just so you so you guys will see me a lot. And I know that Sudan will help us if people are.

1:13:37and the community would like to try to do that. So I hope that that we do get more takers to to do that, and here in elsewhere that will make us safer and hopefully reduce our insurance costs.

1:13:49Okay, so is, do I have a motion to approve the resolution declaring identified properties with, exhibit A, you first need to close Po. Hold the public hearing. Oh, I thought, I said, I had to do this motion before the my apologies, my my apologies. You are correct. So do I have a motion to approve the resolution declaring identified properties with, Exhibit A, so moved.

1:14:15okay, do I have a second? Okay. Moved by council, mayor, protein rendez, second by councilmember Fideli. All those in vary Pci. Any opposed motion carries, hey?

1:14:30The public hearing is now open in person. Request to to speak, can submit a speaker card to the city clerk and remote speakers can use the raise hand, feature to request, to speak. Please remember to identify yourself in your city of residence at the beginning of your comments. City clerk, please proceed on this item

1:14:51right

1:14:54great. So do I have a motion to close the public hearing. So

1:14:59hey? Do I have a second second, hey? So a motion from Council Member Quinto, second from Council Member Weissinger, all those in favor. Please say I am opposed. Machine carries, hey?

1:15:12So any further council comments?

1:15:18Okay, do I have a motion to approve the resolution overriding objections? So moved.

1:15:24Do you have a second?

1:15:26All those in favor, please say, aye, aye, any opposed motion carries, hey?

1:15:34Moving us along at a quick click. The next item is adoption of the 202-32-0316 cycle housing element update. May we please have the staff report?

1:15:56Good evening, Mayor Morayama City councilmembers.

1:15:59I'm Shawn Moss, the city's planning manager, and it is my pleasure to be before you tonight to present the 2,02320, 31 housing element update which is the result of much work on behalf of staff and much community. Input. We worked very hard with the State Department of Housing and community development to be able to receive that conditional approval letter. That is part of your packet tonight.

1:16:28And I. So I just wanted to acknowledge the work of my colleagues. Aisha Shuri, our housing manager, and the city's consultant. Assent environmental

1:16:40Ayesa is is here tonight as well as Chelsea Paine from Assent environmental.

1:16:46I want to acknowledge, the the uniqueness of El Cerrito's housing element Update and housing element effort. Our housing element. I want to acknowledge the the work that the City Council has already done. With regard to land use policy in the city. And with regard to the groundwork that you've already laid for housing production in the city.

1:17:14We much of this the required housing inventory that the city is required to plan for has already been

1:17:26is already permitted through the San Pablo Avenue specific plan, which the the City Council adopted initially in 2,014 and updated in 2,022

1:17:37so this Elserida was in the unique position. Our housing element, the housing element that's before you tonight, the sequa document, that is, as part of your packet is an addendum to the general plan, Eir, and the specific plan, eir and scir and that is very unusual. That we are moving forward with this effort with an addendum

1:18:04the. And that is because of the hard work that the that the City Council has already done, and all the plans and policies that you've put in place already. Mean that the city doesn't isn't

1:18:17doesn't have to do any major

1:18:19zoning updates or rezonings in order to plan for the the number of housing units? That we are required to plan for within within this planning cycle.

1:18:34and that is that is really important. And I and I want to acknowledge that

1:18:39it's really an honor to work for for a community. Where that is the case. I'm gonna turn it over in a minute to our house. Our the consultant sent Environmental and Chelsea pain that we've worked with on this effort, but to give them a more in depth presentation. But II know that I can stand here tonight

1:19:03and and not have to explain to the city council and the community the importance of of producing more housing units in this community. I know that you you all understand, the the deficit of of housing that we have in this region. And the importance of building more housing.

1:19:22For our both our current and our future residents. And so II it's really a and an honor to to be here tonight and and present to you, and and know that.

1:19:34I. There is one thing I do wanna mention

1:19:38before we go into the the Powerpoint presentation is that this housing element cycle is a little bit different from previous housing element cycles, in that there is going to be some maintenance some kind of ongoing maintenance that we need to do for the housing element.

1:19:54So, for example.

1:19:58the

1:20:00the the site's inventory identifies sites that can accommodate housing in El cerrito

1:20:08and

1:20:09projects, numbers of units that are that are achievable on those sites. And it, you know, based on certain assumptions. It

1:20:22projects certain

1:20:26amount of of housing affordability at different levels on different sites.

1:20:32If projects come forward. During the the planning period.

1:20:37that do not achieve as many units or as many affordable units as is shown on the sites inventory. The city will need to account for that somehow. We. We need to make sure that we all always have the capacity to accommodate the the arena that we have been allocated, or the the number of housing units at each level of affordability that we have been allocated.

1:21:02So that means that you know through the cycle as things change, we're going to have to kind of keep looking at the housing element, and there may be changes that we need to make. You know, with respect there may be, there may be zoning changes, or there, just maybe we may just need to look at the at the sites inventory again. And you know, identify additional sites that that could accommodate housing, etc.

1:21:30So I just wanted to to bring that to your attention. You know it is. It is kind of

1:21:35you know. II hate to use the term unfunded mandate, but you know it is just another another layer of requirements that the that we, you know, need to comply with another layer of state requirements that we need to comply with.

1:21:52you know, kind of at our, at our current staffing levels. It's you know, it can can be challenging. And that's just so it's just something, you know, something I wanted to to bring to your attention. That is, that's different in this cycle than it has been in the past. So with that I will turn it over to Chelsea Paine from a sent environmental who will give the presentation. And, as I said, I am here and available for questions as well as ie. So surely our housing manager.

1:22:25Good evening, Mayor. Members of the City Council. I'm Chelsea Payne, Director of Urban planning at ascent and, as Shawn said, I'm going to lead you through tonight's presentation.

1:22:36so I know this is the second time presenting this draft this housing element to you tonight. So I'm just gonna keep it very brief, for those in the audience tonight that you know, this might be new to them. But the housing element is an element of the city's general plan, and it focuses on meeting the needs of existing city residents, but also meeting the city's fair share of the future regional housing need.

1:23:03Every city and county in California is required to have a housing element and to update it on an 8 year schedule that's set by State law. and the housing element is the only element of the general plan that's reviewed and certified by the State as in compliance with State law, and that process has become trickier and trickier. So we're really glad, as Shawn said, to have that conditional approval letter from the State, knowing that if adopted tonight that this housing element will be certified.

1:23:33So here's how the housing element is organized. There's a lot of information that goes into this document. Including a needs assessment. A fair housing assessment, an inventory of available land in the city. And then analysis of constraints just to name a few.

1:23:53There's also the housing plan, which is chapter 7. And this is really the the heart of the document, because it contains the policies and the implementation programs that will be continued to be implemented over the 8 year planning period.

1:24:09One of the central pieces of the housing element is the regional housing needs that are assigned to the city. The State assigned the abag region over 440,000 housing units to be accommodated over the roughly 8 year projection period.

1:24:26and based on the methodology adopted by Abag el Cerritos. Portion of that regional housing need is just under 1,400 housing units.

1:24:37and that housing target is broken down by the different income levels that are shown here. From very low income up to above moderate income housing units. You can also see or see here how the the Rena regional housing needs allocation. For this housing element compares to your current housing elements. Rena target. It's nearly 3 and a half times your current Rena

1:25:03and the city's lower income, Rena, which is the very low and the low income categories combined are about 38% of the total Rena. And there's a lot of attention around the State on how cities are meeting their affordable lower income housing needs.

1:25:24There have been opportunities for community engagement. Throughout this process the city held its first workshop in April of last year. Along with a survey, and they're on an online project webpage with details about the project. The draft housing element was released in July of last year.

1:25:43and the city held a planning commission, sponsored community workshop. On August first. So about a year ago, and then throughout the process, the city has continued to accept. Sorry about that to accept public input and to be try to be very transparent and posting all of the revisions through all of these rounds of review with the State.

1:26:08Here's a detailed breakdown of the timeline for submitting the housing element to Hcd. At the State and revising it in response to comments. and we submitted the first draft of the housing element back in September of last year, and then since then, we've gone through 3 rounds of revisions with the state to achieve this conditional approval letter

1:26:30and the next few slides. I'm gonna give an overview of the revisions that we made because I know you reviewed the draft. So tonight I'm gonna focus on what's different since you last reviewed the housing element.

1:26:43like, I said, we we published each round of revisions. So in the markup version of the housing element you'll see track changes in blue text to show the first round, and then we use yellow highlighting for the next round, and then teal highlighting in the final. So you can kind of see the progression of the revisions made

1:27:05in the first chapter of the housing element or the introduction. We just made some minor edits to describe the comments that were were received from the public during the Hcd. Review process. And we added more details on how that public public input informed the programs of the housing element.

1:27:24And then in the needs assessment chapter, we added some additional data and analysis on extremely low income households and their their needs, housing cost burden and then existing resources available for special needs groups.

1:27:41We made several updates to the fair housing chapter, including describing history of El Cerrito and historic development patterns, identifying areas of affluence and assessing trends in homelessness, and the most significant changes to this chapter were in the analysis of how the sites in the inventory relate to all of the fair housing factors in that chapter.

1:28:07Also, after the city's initial draft housing element was published, the State provided some new data

1:28:14on racially concentrated areas of affluence. And the data show that the hillside areas in El Cerrito are considered racially concentrated areas of affluence meaning higher proportion of white population and higher median incomes relative to the region or the State and this was one of the factors that Hcd. Took into account, and requiring stronger commitments from the city

1:28:39to take have action to affirmatively further fair housing.

1:28:46This is the revised map of the site's inventory, showing showing showing the final vacant and under utilized sites and pipeline projects that are counted in the housing element inventory. And we we added a lot more detail on the approved pipeline projects, and we also updated the discussion on the availability of the Del Norte, Bart. Station.

1:29:08Those were some of the main edits to that chapter.

1:29:11and then this shows how the final inventory capacity numbers add up there is sufficient capacity to meet the arena and at all income levels and in fact, the city has a surplus capacity which provides you with a buffer cause. As Shawn said, as projects are approved, you're going to have to be monitoring and maintaining capacity in your sites. Inventory

1:29:38in the constraints. Chapter we added a lot more analysis of zoning standards, land use controls, project approval procedures, and the State has a lot of questions for cities, on how they're approving projects. Any, and and wants to look for any potential constraints. And then there were no changes to the energy conservation chapter.

1:30:02we made several changes to the actions or the implementation programs in the Housing plan.

1:30:09mostly focused on providing more specific timelines and stronger commitments to affirmatively further fair housing.

1:30:17We also added several new programs in response to the state comments, including a program to help facilitate the development of projects in the pipeline which really reflects what the city already does to help move projects along. To adopt in a Senate bill 35 ministerial approval process. A program to monitor land use controls to make sure that your development standards aren't constraining housing production.

1:30:44establishing a a priority processing policy for infrastructure for affordable housing, participating in the county's home match program. And then finally, a new program focused on community engagement and capacity building.

1:30:59And the next few slides. I'm just gonna cover a few of the key programs that were either added or substantially modified through the review process.

1:31:10The first program commits the city to adopting zoning standards and incentives, to allow a greater variety of housing in single family neighborhoods. So including tiny homes, efficiency units, and missing middle housing types for moderate income earners.

1:31:30And this is one of the programs that was included to address the requirement, to affirmatively further fair housing particularly in racially concentrated areas of affluence. So in other words, this, the State wanted to see programs that expanded housing opportunities in the hillside areas.

1:31:50but also recognizing that there are safety concerns related to wildfire. The program includes conducting a fire risk evaluation and developing mitigation in conjunction with the the city's safety element update to allow more. Senate Bill, 9 ministerial lot splits and duplexes in your very high fire. Hazard severity zones. So that would. That's that's one way to expand housing opportunities in those areas.

1:32:20As you were discussing earlier tonight. Much of that is in the hillside areas, a lot of those very high fire hazard severity zones overlap

1:32:29with the areas considered racially concentrated areas of affluence.

1:32:35The program also includes a commitment to do a midterm evaluation. And if it's determined that the city isn't on track to meeting the objective for increasing housing choices in in high resource, single family neighborhoods, that the city would consider some alternative approaches that might include up zoning.

1:32:55identifying higher density, housing opportunities on institutional or quasi institutional lands, or acquiring and adding affordability to existing structures.

1:33:09The next program is an action to adopt an ministerial approval process which I mentioned earlier was added as a new program. Previously the city had not been subject to because the city was meeting its prorated share of

1:33:27of your Rena, your housing target. But the most recent determination by the State. Confirm that El Cerrito is now subject to this law. So this is about creating a procedure to to provide ministerial approval for projects that would include 50% of their units as affordable. But they would have an avenue for staff level. Non-discretionary ministerial approval.

1:33:56And then, lastly, we wanted to call your attention to this program and program. We added a lot more detail to this program in response to questions and comments from the State to outline how the city is going to proactively partner with Bart to develop housing at both Bart stations, and we added specific targets for both stations, specific steps with timelines and a commitment to alternative actions. If

1:34:26if the steps outlined in the program aren't completed, as anticipated. So that means if development at the Bart stations doesn't happen on the schedule that's laid out in this program

1:34:37that the city would take more proactive steps to help facilitate development or possibly remove the sites from the inventory and find replacement sites. If it's determined that the remaining inventory sites don't provide enough capacity.

1:34:56So that that wraps up my sort of overview of the major changes to the housing element. At the July twenty-seventh public hearing the planning Commission recommended that the City Council. Adopt and approve

1:35:13for submittal to the State. The housing element, including all of the revisions that were made to address Hcd's comments. They also re recommended one modification. To program H. 4 B. This is around providing reasonable accommodation for persons with disabilities.

1:35:33and the planning Commission wanted to see the underlying text added, that the city would ensure that people with disabilities have a streamlined process for requesting modifications

1:35:46to any policy, rule, or procedure that presents a barrier to obtaining and retaining

1:35:52equal housing opportunity. So that was the recommended change to that program from the planning commission.

1:36:01So for next steps. Since we have the conditional approval letter, we have some certainty that if adopted tonight, with all of the revisions that have been submitted to the State. That the State will certify the city's housing element. Our plan would be to submit to Hcd as soon as tomorrow, and the State technically has 60 days to issue that certification letter. But we've been working pretty closely, so we would expect to get that letter much sooner.

1:36:32So that concludes my presentation, and I'll leave you here with Staff's recommendation. Staff recommends that the City Council adopt and approve for submittal to the California department of Housing and community Development, the 2023, 2031 housing element, as amended.

1:36:49Thank you very much.

1:36:51Thank you.

1:37:10And start working on on a lot of these items. And also I wanted to add that kind of tied into this effort. Is also an update to the city's safety element. There's kind of various state legislation that kind of ties these 2 efforts together. And so we are getting ready to embark on that process, and we'll be returning to you later this year with a a budget request for for that effort as well.

1:37:38Great. Thank you so much.

1:37:40and thank you to staff. This is a huge effort, and it's very exciting to see that we're getting close to the end and getting our approval. So I will open up to any questions from council at this time. Councilmember Fideli.

1:37:55then councilmember Weiss. Yes.

1:37:57thank you again, and II think I agree with everybody. This is an opus.

1:38:02Quite extraordinary.

1:38:06It it it to anyone. It's way more than housing. It's about the history of this city

1:38:13and good and bad.

1:38:16Really, I'm getting touched here because the housing discrimination and the mortgage stuff is really touch, we got it correct.

1:38:26and the fair housing requirements are pretty big in here that we have to what we have to do, as you say, and I'm not sure we have the staffing to do all the things and on the report.

1:38:37But it's big big task. You say the

1:38:42safety update is is due. It's coming. I thought. We already budgeted the money, for that. Is that request. Not.

1:38:49Has that not happened yet? I thought we said we would pay for that already. Not yet. We're getting ready to put out a request for proposals for that effort.

1:38:59And so we'll we'll return to you.

1:39:11I'm just so impressed by the maps.

1:39:14the facts, the figures.

1:39:17I mean, it's kind of scary to look at it, but I have a comfortable chair, and it just I put some good music on, and I looked. Went through this

1:39:27it

1:39:31we. Yeah, let me just see here.

1:39:36the stuff that we did back in 2,017 or 18, and I know we have the staff here that did it, at least.

1:39:43and that

1:39:45who's that? The rent registry and the tenant displacement issues and things? Are there? Was there any. How did that fit into this report? I didn't, really. It didn't pop out at me in this report. So

1:40:00good evening, Council members, Iisa, sherry housing manager. Yes, that is actually. And as part of our housing plan we is that we are incorporating annual reporting of the rent registry to you all which we will bring back later this year, and we are also exploring additional tenant protection policies which are defined in the housing plan as well. So it does have things associated with coming back, such as you know, a tenant relocation, ordinance, things of that sort.

1:40:30Registry.

1:40:54I read it somewhat. It says that the city failed to adopt a compliant housing element in time. What does that mean? I mean? And are they? And they're saying We better do it, or I mean, were we delayed? And so for some reason or

1:41:10the so, that's a good question. Technically, the deadline for adoption was January 30. First of this year. Very few jurisdictions in the region actually adopted by that date. We tried. We were working towards it, but the State review process was very lengthy and cumbersome. You can see that reflected in the magnitude of the changes. So we I mean, we we published this last summer a year ago, submitted to the State at that time. But.

1:41:40the the process of working with the State delayed us in meeting that adoption deadline.

1:41:49This is not just el suit, though it's the burden of the task throughout all cities. Yes, I don't know the the number or the percentage of jurisdictions in the abag region that have adopted and are certified. But I'm gonna guess it's under 50 around the halfway mark. That's just my guess.

1:42:08yeah, I don't. I don't know those numbers, either, but just last week the C 4 collaborative, which is our contra Costa County planning collaborative. That's kind of funded with a grant from a background. Put out a poll to all the the jurisdictions in the county. Asking whether your housing element was already adopted. Whether you expected to have it adopted by the end of

1:42:33this calendar year, or whether you weren't gonna have it even certified by the end of this calendar year. So that's, you know, some jurisdictions are even looking at that scenario. Okay, the resolution that we have before says that there are no substantive substantial changes.

1:42:51Isn't chapter 4 and fair housing substantial changes that's gonna take a lot of effort that we were just talking about.

1:43:01Oh, we're we're

1:43:04you know, when I'm asking not quite lucan talks about past this again. No substantial changes from when we've seen it the last time. But but chapter 4, fair Housing. It are substantial changes. So I'm questioning whether that

1:43:21point in the resolution is is a fair one. So I think there, yeah, there are changes from the last time that the the City Council reviewed the draft.

1:43:32That we initially submitted to. Hcd. I'm not sure exactly what the resolution is referring to. But there, there are not substantial changes from the planning Commission recommendation. That's before you tonight. New things and efforts dealing with fair housing

1:43:51that we ha! We're gonna have to do which we're just talking about. Okay, we might think about tweaking that a little bit.

1:43:59I just wanna say congratulations again.

1:44:02One of the key facts that

1:44:05hit me in the face, which I think is good for our Chamber of Commerce. Who's here tonight and others it. It talks about 100% of all jobs in El Cerrito

1:44:14are within a half a mile of transit. So new employees be aware, I mean

1:44:20100% of the jobs in El Cerrito. a half a mile from transit that should

1:44:26seek people and employers coming here and developing in El Cerrito. I hope that goes out. I hope word gets out. I hope we advertise that

1:44:35and finally, there were a couple I found actually a couple of misspellings and changes. Can I get? Give that to someone later?

1:44:42Yeah, a number that just seemed out of place there rather than talk about it here. Great. Thank you very much.

1:44:49Thank you so much, Mayor, and I want to thank Council Member for daily for giving me a better opening for what I want to say in regards this, I want to thank you all for this work that you have done. This is

1:45:03like Council, Member Fidel said in light of the history of this city. This is very transformational work that you have done, and for me, you know, I had a very spirited discussion with a non-elected, but want to be elected member of one of our neighboring cities the other day.

1:45:20And I am just proud to be on this council and the work that they did before me. Getting here the work that they did with former Mayor. Janet able. Janet was here. We had so many conversations over fried chicken sandwiches for fat apples, where she talked about the importance of continuing to build this housing, not just to bring a diverse group of people into this community.

1:45:45which, of course, is, is important, but also because it does strengthen our business community because businesses won't come to El Cerrito unless we have not just people, but diverse people, so that we can bring diverse businesses into this community. And and I don't talk about this a lot very explicitly on the diet. I usually make very snarky backhand comments about it. And this is where Sky is. Gonna put his hand on his new sensor, but

1:46:10and but I will do my best to use my very smart words

1:46:13and say, you know, I'm one of the people that lives in that that big, ugly building in the middle of El Sura that everyone thinks is so ugly but has built so many units, and it has really done all the things that you have said in this, in this housing element it's built. It has more disabled folks in it. It's given people with mental illnesses who need public space around them. So they're not walking the streets all day. They can just go out and sit on on a bench, or, you know, see some of go to the Park station or go to one of the businesses around the city.

1:46:43It gives them that it gives students who can be in Berkeley, but want to be here in El Cerrito, gives them that opportunity is giving working class people of color the opportunity to have housing that they can afford. That's in a safe space that again has open space for their children, who can't get to our parts that are not necessarily sensible to them. We'll deal with that a bit later. But you know.

1:47:06I just want to use this opportunity to say number One and elsewhere, that we build housing, and that's me saying it in a nice way, and not using using my, you know

1:47:16straight words about it. We build housing here in El Sura because we want different people here. We want all type of people to feel welcome in the way that they didn't. When I grew up here 30 years ago, wanting to be an El Sura, but it wasn't accessible. This you all have done this with this housing element, right? And I want to also just thank you for it.

1:47:36That th! That's all that I'm gonna say about that. You know.

1:47:40I love being in the city where we prioritize housing, but the State has recognized this for prioritizing housing. And to those people who think that that building is like we, I just wanna say on the record, I don't care if it is a glue sitting in the middle of the city of El Cerrito. It's meeting all of our general plan. If it's meeting our housing requirements. If people are finding a safe place to live that meets our energy conservation goals, and these are climate acting goals, I will approve it, and we'll just have a clue in the middle of El Cerrito, because

1:48:09hear me clearly, and put this on next door, because I know they will. I don't care what you think about what it looks like. I care that working class people until they have a place to live here in El Cerrito. It's not different towards you as directed towards them. I just want to tell you. Thank you.

1:48:25Thank you. Any comments on this like council. Burak.

1:48:32looking at at at the new numbers, and and looking how controversial it has been up and down the State of California, and and and seeing how cities in California are threatening to leave the bigger California cities because of this one size fits all

1:48:53and and we're seeing a lot of angry cities that are forced into this and I wanna give you another side of of what

1:49:05I have heard and what I'm personally dealing with is that these projects that are all. We are waiting for all of these projects to just break ground. You know, our, our planning department did a great job, and we were there first, the first city of West Contra Costa to support this idea of housing for everyone. But but yet because of this

1:49:28of Senator Wiener's new bills like 4 23. And and Buffy's bills. You know, we're we're being pushed aside, and and the same developers in Berkeley are the same developers in El Cerrito, and they frankly don't wanna build here. They wanna build in Berkeley cause they know that the money is there. They can make more money there.

1:49:50And and where does that put cities like El Cerrito, where we have been playing by the rules and want to do the right thing. And yet you get this more legislation by our our legislators in Sacramento that are not

1:50:05that are doing this to make cities like that haven't participated making them catch up. So II this is a point that I want to make sure. That we're not the only city dealing with this problem. Many cities are are dealing with that. And and these developers want to go where they can make more money and and make it now where does that leave our

1:50:30are developments when you know, we've been working with them for many, many years, encouraging them to do the right thing and just break ground. But they're making excuses and not building. And and to me that is more like a ponce scheme. Where? You're seeing. Yeah, we'll do it. Yeah, we'll do it. But really, they don't wanna do it. So you know, I just wanna give you my personal opinion about what I've been hearing.

1:51:03Thank you, Councillor Marquin, too.

1:51:07mayor pro-temundick. It's okay. I'll you can go ahead. Oh.

1:51:12I just want to. Again. Thanks, Staff. This is such a huge lift.

1:51:18I have been so jealous of other communities like Almeda that were able to pass their housing element and having their mayor tell me ours is approved. So I am so excited and pleased that we're we're we are so close. And

1:51:34you know, for for people that have not looked at our housing element, you know, going back to what Council Member Fidel said, this is not just where we're gonna propose to put housing in the city. It has so much data about who lives here where they live. What kind of opportunities are here some of the things that I really that jumped out at me, that I really enjoy looking at the charts and the maps is like looking at that metric about

1:51:59racial isolation that we are really mixed community. There's the concentration in the hills which is not a surprise to anything anybody, I think, in this. Yeah, but that, on the whole, our community is very well mixed and dispersed of people of different economic levels and and races. And and I think this is, that's kind of

1:52:20the proof in the putting of why we are so supportive of housing in our community that because so many people, the different for different reasons. All come together. We live here, we love it, we love our community, and we want to have people be able to come and share in what is great about Elfrido.

1:52:38and I think this is, it's worth

1:52:40stain that this is. This is an 8 year plan. So we're looking at the long game. As everyone knows, real estate is cyclical. We're

1:52:48we were in a hot moment there before 2020 and then. Now we're in sort of a because of higher interest rates and other market forces. We're in a time where things aren't happening very quickly. And I think the community members look around on Sam Powell Avenue and see a lot of empty lots and go. They're ugly. Why is nothing happening?

1:53:08Well, that's capitalism. But the thing is, we have this plan we have very supportive staff. We have a supportive community, and we will be ready when the market changes. We have these great sites. Not every community in the Bay Area in the Bay Area has 2 bard stations. So we have transit oriented development sites. We have land. We have opportunities here, and so when

1:53:35they have to wait till Berkeley is done. But we are ready

1:53:39and we are welcoming of development. We are welcoming, of housing, and we're welcoming up all kinds of people to come and join us in this community that we love so much. So

1:53:49I will step off my soapbox.

1:53:52bear pro temp. I'll keep it super short.

1:53:55I think my colleagues reflected how huge and how we see that, and we appreciate it. So to our staff. Thank you so much. This is such a a huge lift also to our consultant. I really appreciate the partnership. I wanna also thank the planning commission and their work on this and their addition to it I thought, was incredibly thoughtful, and also to the community members who participated because this has been a really long process. And I wanna acknowledge the community members who collaborated to make this happen. Thank you.

1:54:29Okay.

1:54:33The public hearing is now open in person. Request to speak. Can some, if people can submit a speaker card to the city clerk and remote speakers can use the raise hand, feature to request, to speak. Please remember to identify yourself and your city of residence at the beginning of your comments. City clerk, please proceed.

1:54:51Thank you, Mayor. Excuse me. We do have one request to speak on this item.

1:54:57I'll go to Howdy, Gaudi. How do you should be able to unmute and begin your time now?

1:55:03Howdy Goudey: Okay, thank you mayor and council members. My name is Howdy Cowdy, and I live in El Cerrito. I appreciate all the work on this plan and all the work the city does to

1:55:15achieve more housing and and particularly affordable housing.

1:55:19I'll just make a few comments the the first on public outreach. I think

1:55:24you know it's it's disappointing for as long and as big of a undertaking as this was that

1:55:31There were only a little over 200 responses to the survey, which is, you know, less than one by population.

1:55:38about 2% by households. That's just not enough participation. We shouldn't be, you know we shouldn't settle for that. You know, 80% of the respondents were homeowners. So we're we're

1:55:51badly representing our community. If we're treating this as

1:55:57you know, sufficient public outreach.

1:55:59I remain a little bit discouraged by the the language of of some of the policies or a actions in this plan. It's it's a lot of encourage and evaluate. And and there's really.

1:56:13as far as I can see, no real hard policies that are being proposed.

1:56:18and no, you know.

1:56:21good timelines being proposed.

1:56:23So it's

1:56:25I mean, it's a lot of good intention, but it's also very vague and not

1:56:31not really committing to that much. And yeah, I think we actually have to be a lot bolder than that. I know it's hard, and we think, Oh, it's just, you know.

1:56:42the market forces that we're at their mercy. But I mean, Government's job is to set policies that you know, guide those market forces, and and we need to actually look at those

1:56:54underlying issues and and address them rather than just hoping they'll change, because, you know, the last cycle we over performed on market rate housing, but we underperformed on affordable housing, even though we built 81 new affordable units, which is great, and I applaud that

1:57:14we were supposed to do 151 more. So we fell short on affordable housing, and and the the new arena goals are way bigger than the last section. So I mean, you're talking about. There was a hot market over the last 8 years, and there was, you know.

1:57:35all this development that we got done. But

1:57:39you know we missed the mark there, and I don't see in these policies how we're gonna meet the mark going forward in a harder climate with a higher goal. And that's what this

1:57:51policy should have really been looking at as a plan is like what really needs to change, to, to get that to happen. So

1:57:59I mean, I realize this is just kind of the regulatory aspect of of the State law. But I think, as we move forward as a city, we need to actually be much more

1:58:12focused and cognizant on. You know what policies and actions we can take to actually get the goals that have been set out, because they're all, you know, laudable and well intentioned. But without.

1:58:23you know, doing something different than what we're doing. We're not going to get to the goals that have been stated. And

1:58:32you know I think it was just mentioned, you know.

1:58:37Blame

1:58:39you know the vacant lots as

1:58:42being, you know. Well, that's how capitalism is. Well, we can change

1:58:47the economics of vacant lots. We can. We can make it costly to leave, you know.

1:58:53space empty and underutilized. And that's the kind of direction we need to be giving the market. So thank you.

1:59:01Thank you. Thank you, Mayor. That does conclude a request to speak. Hey?

1:59:07Do I have a motion to close the public hearing? Do I have a second. Second. Okay. Motion by Councillor Pinto, second by Mayor pro temig.

1:59:18All those in favor, please say aye, post motion carries.

1:59:24Do I have a motion to approve

1:59:28the resolution. So moved?

1:59:33Is it the housing element itself, or the motion? Is the resolution resolution? Yes. Okay. Do I have a motion to approve the resolution of adopting the 6 cycle housing element update in compliance with State housing element law. All those in favor, please say any opposed motion carries.

2:00:00Thank you very much. Hey?

2:00:04The next item is amendment to city comprehensive financial policies related to year end surpluses and the immense emergency disaster relief Fund.

2:00:15Can we please have the staff reports. and here's our new finance director.

2:00:42okay?

2:01:16Well, I'll begin. Thank you so much, your honor. Again. I'm Karen Pincus, City manager. And

2:01:23with me is crystal rings our new finance director, and we're very happy. She's here. So this first item and also holly, I believe the chair. Well.

2:01:36maybe he left.

2:01:40Oh. oh, wonderful. Okay, thank you. I was. I saw him seen his name earlier. Okay, so the chair of the Fab is here as well.

2:01:49so this item, before you tonight is requesting a revision of the comprehensive financial policies. First, to revise. Section 2, which is regarding a year and surplus second is to revise Section 4 regarding the emergency Disaster Relief fund and based on a couple of comments that I've received from Council members

2:02:14over the past couple of days. We do actually have a couple of housekeeping items that we that could be considered by the Council as well. And so just for background. The city's comprehensive financial policies are our guideline for operational and strategic decision making our goal, of course, is to maintain financial stability and continually adapt to local, regional, and national economic changes. Each year the Financial Advisory Board, otherwise known as the Fab reviews. These policies, at least annually.

2:02:45and any proposed substantive revisions are submitted to the City Council for approval as they are tonight.

2:02:53The Fab created a subcommittee of chairman and Member Patterson to review and recommend language to modify the comprehensive financial policies, particularly looking at the General Fund reserve balance in the event of year end surplus as well as looking at the emergency disaster relief fund.

2:03:13the city Council or the city's generated a general fund reserve of 16.6 million dollars over 2 years, and the City Council's been interested in a policy that not only would assist in how to allocate any surplus or to how it allocate this fund balance, but also the desire to fund pension costs through a section 1, 15 trust, which will be part of the discussion for our second item this evening. After this one

2:03:39currently are also, in the event of any year in surpluses, there would be prioritization that the Fab was interested in taking a look at. And so the Fab subcommittee work with staff the prior Finance director with me, and then the last meeting that Crystal was able to attend

2:03:59to provide language, looked at other cities, and, had a very thorough discussion about this particular policy. So, crystal, if you can scroll down to Section 2, which is the

2:04:12which is first, the first proposed revision. So as you can see the current. There is a current very small

2:04:19section regarding your end surpluses. That essentially says that they'll revert to unappropriated balances for use and maintaining service level set by policy, and it would be available for capital projects or one time expenditures upon approval of city Council and to date. This is exactly what we've been doing, particularly the past 2 years, with one time expenditures that we've brought to the city council.

2:04:43So we're currently following this policy. And of course, the current reserve level of 34 34 exceeds the current minimum reserve level of 10 of general fund expenditures, which is in Section 3 of this policy, but because we haven't had a fund balance to date. That is significant enough.

2:05:03The Edrf. Which is the emergency disaster fund. I'll refer to that going forward has not been funded at all, and so that 16.6 million dollars is currently unassigned. And again, that will be the discussion that comes to you next?

2:05:17What the Fab discussed was a priority list or a waterfall, if you will, that the city council could look at to ensure that first and foremost the general fund is re is

2:05:29is funded per the policy, and secondly, that the Edr. Ff. Was funded per the policy in advance of any other considerations for allocation. The next priorities would then be funding pension costs, and then one time expenditures. So if you can see the which is in your packet, and this is the proposed language.

2:05:50that any general fu fund year end operating surplus, the excess of actual general fund revenue, less actual general fund expenditures which of, as you also know, would be determined through the current process, the audit process and the development of our financial statements also known as our annual comprehensive financial report for the act, for that will give us the actual numbers once those are completed.

2:06:16and so what the Fab is proposing this language is that it would be allocated to the following subject to city Council approval in this priority, order number one general Fund reserve until it's received reached 100 of its targeted ratio, which currently is 10, I will tell you. And of course the chair can reiterate this that the Fab also wants to look at that percentage and talk about that percentage and wants

2:06:41to look at a couple of other items in their next review of this policy. Just so you're aware that this conversation will continue.

2:06:50Secondly, the emergency disaster relief fund until the balance and that fund reaches 100 of the target balance currently, that is,

2:06:59the Edrf. Which I'll go in more detail in a moment. But right now that wh that looks at 3 months worth of payroll costs. It's estimated right now at about 9 million dollars and that would create a cash reserve, and I'll get to that more in a second, but the priority would be that that would be funded per any surpl any year end surplus

2:07:22the next, a minimum of 33% of the remaining surplus would go to be discretionary payments toward pension costs and the Council's indicated. You know, looking at a section 1, 15, trust all of the various options for looking at payment for pensions. But this would allow for some minimum funding each year

2:07:44for a section 115 trust. And I know that that was one of the things that the Council was really interested in the work group that unfortunately wasn't able to continue because of severe staffing, shortages and finance, but that was what was discussed

2:07:58previously, as far as coming up with at least some sort of funding mechanism for the section 1, 15. Trust. This would provide for that at any year and surplus. And then, lastly, sort of a bit of a a catch off for that would require me to make recommendations to the city council, which which sort of

2:08:17kind of goes toward the pre. What the previous language said, for any remaining surplus for non recurring expenditures, such as capital improvements, equipment, purchases, or other one time expenditures which would not require additional feature expense outlays so the idea would be that these types of one time expenditures with the hope that they wouldn't create additional ongoing expenditures.

2:08:38maintenance, capital, those types of things, knowing that there always tends to be some sort of ongoing budget. But this allows for the Council to really take a look at that and ensure that, you know. That's what the your end surplus would would be able to be provided for when it comes to one time expenditures.

2:08:57So that is the the waterfall language that was proposed by the Fab and in consultation with the finance director. Steph is absolutely recommending the adoption of this language as well.

2:09:11So the next part, if you could scroll to the section 3

2:09:16the emergency disaster relief fund again. This is not this was added to the policy in 2,019, and we were not able to fund it at that time. The Council knows exactly why we haven't been able to fund it prior to at least last year. So now this is the time. And again this will be the next policy item, to have a discussion about the Edr. Ff. And how much the Council would like to

2:09:42to take a look at funding it. One of the things that Staff recommended, and this is in consultation again with our new finance director and crystal. You can jump in if you like. That

2:09:53the current language designates that it would be a new separate fund.

2:09:59While this would be, you know, perfectly fine as far as looking at what the what our our emergency funds would be. However, it would remove it from the general fund which would definitely impact the general fund ratio and the minimum targets that we're trying to meet again and talking with Crystal and her experience in other cities.

2:10:21One of the things we're we propose to the Fab was that instead of taking it out of the general fund and making it separate, that if it remained in the general fund, but was restricted, so the same restrictions would apply, however, it would be included within the general fund. It is cleaner. It would be easily designated through the city's financial statements.

2:10:44and we believe that it would have a better effect on on what people are looking at, as far as what our general fund balance would include.

2:10:53So the language that was

2:10:55suggested by the Fab would be to change, separate from the city's general fund to a restricted port, to which will be a restricted portion of the city's general fund. And again, you know, and and you know many of the Fab members could certainly opine on this, but it is certainly been my observation and my agreement with the Fab, that

2:11:18you know now that we have some fun balance to be able to to restrict, that it certainly would be in our best interest to ensure that we're starting to fund this seriously, so that we have. We would not.

2:11:31if we even had half of

2:11:34half of what we had originally intended. As far as 3 months payroll, we might not have had to lay off as many staff as we did during the pandemic. It's just it's just good practice.

2:11:45there are a couple of other items again, based on city council comments. You see the the highlighted part there that says currently 6 million, we could propose to delete that because, first of all, it's now up to 9 million. This was 4 years ago.

2:12:01And second of all, this is going to fluctuate. This obviously fluctuates, based on whatever the payroll costs are, and with costs going up. This this would do that each year. So that is outdated language. Also, the Fab will be looking at this. the 3 months worth of payroll costs. That was the formula that they had come up with in 2019. However, they indicated that they might wanna talk about maybe making that

2:12:26a straight percentage, but that is still to be discussed along with potentially increasing the ratio. So you can that will again be part of the Fabs discussion coming up.

2:12:36and then if you wanna scroll down a little bit more crystal, thank you. That this is outdated languages as well. We don't call it the Cafr anymore. It's now the annual comprehensive financial report or Akfir. So we would propose that those 2 housekeeping

2:12:53items be changed to update first of all to delete the number, the 6 million dollar number. In the previous paragraph. Into this we would propose changing it to Akfir.

2:13:03and with that I would certainly invite the chair of the Fab to be able to speak to this as well.

2:13:16Sorry I didn't see you there. Fine somebody here.

2:13:19That's fine. Well, thank you. Counsel for discussing this Adam tonight. I think nails a great presentation, I think. As same, Andre alluded. We're gonna learn more a little bit about the restricted portion of the general fund balance, how the Edr Ff. Would fit into there and making sure that that. We understand correctly that the figures of the Edr. F. And the general fund or reserve balance are in fact, additive. This will be a very

2:13:44a healthy balance. Once we do achieve it. I think we have a healthy balance right now. We want to just capitalize on on that opportunity to make sure that we bank it, and that we're we're setting ourselves up for for future success. And and yeah, fiscal improvement. So we appreciate your time

2:14:03great. And so that is so if this would be again this the city staff completely agrees with the Fab as far as these recommendations for revision, and we're available for any questions.

2:14:16Great. Thank you very much. Are there any questions from Council Count? May I pretend I seem staff report? And then I saw in the notes that the motion passed 2, one.

2:14:26and get a little bit more information about that vote from the members.

2:14:44Good evening, City Council. Good evening. deputy manager. Everyone who's present. I was the person who did not vote.

2:14:55Get into the mic.

2:15:00if you just speak into the mic. Alright. So II did not vote for this. The primary reason why I did not vote for this is because this handout this information was not part of the packet.

2:15:14and it wasn't available for me to view in order to clearly understand what was written here and that, and in my opinion the document had already been drafted, so it would have been appropriate to show it to us in advance, so that we'd have would have had an opportunity to consider it before voting on it.

2:15:35Okay, so just, I can just have a follow-up question to that. Are you comfortable with the recommendation currently as written.

2:15:45Yeah, I have mixed feelings about it.

2:15:47Can I drill in a little bit more and find out more of this mixed feelings? We definitely wanna honor our Financial Advisory Board. Make sure that we're, you know, being able to factored in. I wanna be able to understand

2:15:57a a little bit more about any of the reservations around the current language.

2:16:03My primary recommendation is that it's what what is currently written is very different than the than what was originally proposed by the subcommittee.

2:16:14and it's quite vague, and it's much more watered down. And because and and I understand very clearly why the 2 funds are combined. It helps us. You know.

2:16:27in terms of other agencies. Looking at our reserve, I understand that very clearly, but what that does by combining them. It is. It blurs previous recommendations on what the reserve balance should be, and the 2 funds you're talking about is the Edr. Fs. And

2:16:46yes, in general fund. Yes. And so when we talk about a percentage, it was a percentage of one thing. And now we're talking about a percentage of 2 things that are fine combined.

2:16:56Oh, we need to look at that a little bit, for oh, I thought we needed to look at that a little bit further before before recommending it. Thank you so much. Appreciate it.

2:17:05That's me you have any other comments from, or questions from council. Yeah, I just wanna say,

2:17:15I'm very pleased that we're about to fund the Edr. Ff, 2 or 3 years ago we voted for this, and there was not money to fund it.

2:17:24and some of us up here. Gabe, Quinto and I, and others that worked on Measure V. Out on the campaign. It was very much, in my view to be a disaster relief

2:17:36bill.

2:17:37Our our real property transfer tax. I used to promote it. That more money going to the general fund will mean more money going to a fund for disaster.

2:17:49So I'm very pleased about this, that this is coming to us like this and II first wanted to say to

2:18:01staff. Who's working on this?

2:18:06you kick butt this week?

2:18:09He really has a new staffer.

2:18:12You really came. You have 3 or 4 or 5 analysis in there, so welcome to El Cerrito, and and thank thank you for this. I

2:18:23wanted to ask about when we specify. Now we're about to talk about funding Edrf. And we talk about the language for economic downturns or disasters. We're not just talking about financial disasters

2:18:38that correct talking about other types of disasters. Correct? The language says. in the event of severe da economic downturns or disasters. My understanding is that the disaster is well, it could mean anything, so it could be a man made disaster. It could be a natural disaster. It could be

2:19:01well any sort of form of disasters, and leaving that word as disasters as opposed to making it more specific, I think, allows the city Council some some some flexibility as to what you consider a disaster to be. Answer

2:19:2033.

2:19:47The Edrf. Is Tbd. What the Council wants to do as far as funding the Edrf. Which we will be talking about next. So say, that would take a half a million dollars to do that. Now you have a half a million dollars left a minimum of one third of whatever's left

2:20:04before the first 2, after the first 2 are taken care of, would then go to pension. So

2:20:09so Council can't do less than 33% if

2:20:14the need should arise, or what? Yeah, that's correct. So if there's additional discretionary payments we want to make sure that those are getting funded. I think that was

2:20:24something that I heard during the kind of work plan that we, the the discussion that we had with the Financial Advisory Board here is that

2:20:33we wanted some sort of commitment for regular payments towards the Pension Trusts, and at the same time while allowing flexibility. So that's why we established some sort of minimum for it.

2:20:44To the extent that we do have

2:20:47post employment benefit trust, you know, unfunded liabilities. I think that that would be applicable when to be when we don't have unfunded liabilities that that provision may need to go away.

2:20:59trust. But maybe

2:21:24a we have a significant. We have something built in to fund the trust.

2:21:29Okay? So they they will see that it's dedicated. It's a certain amount that's not 2. It's a third of what we need. And and of course, remembering that the City Council

2:21:39has the ability to make that change yourself. You can. You can make that choice each year when we come to you after the act for is complete, and you have. We know what our surplus is. A city council, of course, can take that action, but this is certainly the priority, and having something built in as a minimum, can. You could do more if you wanted to, but that would be certainly the suggestion that you have a minimum funding capability to address

2:22:04pension costs.

2:22:05And should we want to do less? Not that we would. We would talk to Fab about bringing a new resolution back to the Council that says, subject to City Council approval. So that would be the City Council's choice.

2:22:31Thank you. Thank you. Crystal. Very.

2:22:34Yeah. Thank you. Mayor. I wanted to also make note of that 33. I very much appreciate it. I appreciate all the work that the bad has done on this. This is fantastic. And I am supporting this but I just wanna make sure, like on great years that, we have the option of paying more.

2:22:58And and we are still yeah. So W. Wanna put that out so in the future, when we have some great years of flush times and and prosperity that we can make more of a dent on this, because we have 10 years to catch up on. And I wanna make sure. I talked to different city leaders up and down the State. And this is what I see other cities in California doing so definitely. Thank you for looking at that and and full support of that.

2:23:28Okay.

2:23:31so I I do appreciate all the work from the Fab to do this, I think a making this clear is helpful.

2:23:41having sort of clear direction for staff in the policy is really helpful, and I think this will hopefully prevent us from having our

2:23:53budget situation ever again. That we are really, really explicit about our general fund balance. And what's what it's doing

2:24:01so with that?

2:24:04Now is the time for members of the public who wish to provide public comments on this item in person. Request to speak can be submitted with a speaker card to the city clerk and remote speakers can use the raise hand feature to request, to speak. Please remember to identify yourself in your city of residence at the beginning of your comments, speaker, please proceed.

2:24:26Thank you, Mayor. This time we do have 2 3 requests to speak, so I'll go to our first virtual request.

2:24:33which is Irish share. Now, Ira, you should be able to unmute and begin your time now.

2:24:38Ira Sharenow: Thank you. So I was shot. Renown El Cerrito, California. When I look at the measure V language on the city's website. I see a lot of talk about services.

2:24:51So the measure v languages on the city's website says, quote to better maintain emergency. 9, 11, fire medical and police services and response times, city parks.

2:25:04pass play fields and open space

2:25:07programs for children, adults and families, library programs, earthquake and disaster preparedness programs and reserves. Other general services show a measure, be adopted, and so forth.

2:25:22to to provide, to bring in money. And the quote. I believe also there's an ordinance that says, Measure view spending will be voided and then reviewed by Fab. Is that actually occurred?

2:25:34I think the meeting the median reserves. According to State Auditor.

2:25:39from a couple of years ago it was something like 60, so Elsurios, like way beyond

2:25:45dominion.

2:25:46so can the Council assess the actual measure, the expenditures versus what was proposed

2:25:53in particular, how much was spent on city parks, pass play fields and open space programs for children, adults and families. And most of all, I'd like to know how much of the measure V money has been sent spent on library programs.

2:26:11Can someone tell me whether there was a deficit in fiscal year 2023.

2:26:17And do you really think there is going to be a surplus in 2024? If so, how much.

2:26:23Thank you very much.

2:26:25Thank you. Thank you. Our next speaker is, Howdy, Gaudi! How do you should be able to unmute and begin your time now?

2:26:33Howdy Goudey: Good evening, Mayor and council members. My name is Heidi Gaudi, and I live in El Cerrito.

2:26:38So I do wanna thank the

2:26:41bob and the counsel for being very attentive to

2:26:46building reserve and funding the. you know, emergency fund

2:26:53and I think those are very important, and it makes sense to make it more explicit as a point of policy

2:27:02procedure going forward.

2:27:04I guess one thing I would just mention is that

2:27:08while having that you know.

2:27:12savings to to fall back on when things are financially or otherwise disastrous. Is super important.

2:27:21you know, investing in.

2:27:23you know, prevention and preparedness is equally important and needs to be focused on as well. And I not saying that comes necessarily before this focus on reserves. But

2:27:39you know, as all the you know, really tragic events that we've been

2:27:46experiencing for years have pointed out.

2:27:49you know

2:27:52it's it's very costly to be faced with

2:27:56a

2:27:58You know a situation that you're not adequately prepared for, and you can save a lot of money by preparing more appropriately, or you can maybe even avoid some things altogether by preparing

2:28:09more adequately. So I think you know that.

2:28:14you know, ongoing attention to

2:28:17prevention and preparedness is, you know, a fundamental aspect of

2:28:22this, this readiness of of reserve as well because it's a reserve of.

2:28:27you know, the capacity of the organization to avoid the bad outcomes and

2:28:33just having money on hand when something bad happens is not necessarily going to be the right answer. In all circumstances it's it's incredibly important. It's not sufficient, though it it needs to be coupled with, you know, true investment in prevention and preparedness. So I urge you to take that as seriously as you are the reserve. Thank you.

2:28:56Thank you.

2:29:00Our next speaker is Linda Kane. Linda. You should be able to unmute and make in your time now.

2:29:06Linda Cain: Thank you. Well, I obviously a lot of work has been done here, and I see it's written as a study session in the agenda. So maybe maybe this is not the final plan. II did not know that we didn't have funds for emergencies of all the various kinds that could occur. So really thank the City Council and the Fab for all the detailed work and study that they've been doing. This is definitely a step in the right direction, and

2:29:31probably should be kept open for the future, thanks to Irish share now for or share. Now for bringing up the library, I'm not quite sure how that fit into the emergency plan. But a library is also a place where you go in case of an emergency, or like a heat emergency, or if the community needs to gather, and it provides benefits for all ages. So sh! Certainly.

2:29:53I mean, I know it's your job as city council to pay attention to everything there are so many things to pay attention to. But yes, the libraries, important emergencies are important. And then, as Howdy, gouty said, being prepared, maybe will avoid some of the emergencies and disasters, as you know, which is kind of in the whole theme of the night.

2:30:12So the. Anyway, it's really important that this was brought up. And I realized I'm I'm amazed at the Fab because they must work so hard doing all this technical stuff that some of us can't even understand. But I it needs to be done and thank you.

2:30:29Thank you, Mayor. That concludes our request to speak on this item. Great. Thank you very much.

2:30:35Okay. Are there any further comments from councilmembers?

2:30:42Quick one. Yes.

2:30:44yeah. I do wanna acknowledge and thank you. Member White for Mike my questioning, because for us as council, if I see that there's an objection to anything I really want to do that analysis and make sure that all the factors are being considered. And also what's great about this policy is that it is flexible, and that if there's any modifications that ever need to be made to the policy

2:31:08made and done and then brought back to us. And it's also good feedback around. How the information is being presented to our members. So thank you.

2:31:20Thanks. Is there a motion to provide staff direction

2:31:27through this?

2:31:29Adopting this change of language

2:31:34in the motion? I would also ask the additional 2 housekeeping items be included in the revisions.

2:31:45Would anyone like to make that motion?

2:31:48I'll move to adopt the resolution with the 2 housekeeping items which is removing 6 million dollars, and then

2:31:58yes, and then the reference to the formally known to the current

2:32:06like for hey? Do I have a second? I will second that.

2:32:11Okay. Second, by motion, by mayor pro temps, second, by councilmember, Kinto. All those in favor please say, aye, any opposed motion carries.

2:32:23Thank you very much. Alright.

2:32:27Put up the second presentation, and just again, as you know, speaking on behalf of staff. I do want to thank the Financial Advisory Board for their really hard work on that item. That was very, very helpful, and it was great to be able to

2:32:42work with you on that language. So thank you.

2:32:45Hey? The next item is study session on general Fund reserve balance. Can we please have the staff report.

2:32:52I'm gonna kick this off again as well. tonight. Well, the staff is now that you have passed these policies. This this will directly

2:33:04work into the study session. To discuss allocating the general Fund reserve balance. Now that you have adopted your priorities. So again, we have Fab members here, and Craig Hill from Nh. Advisors who will go in who will help us? Answer any questions that the Council may have on a couple of elements of this, so we could go to the first slide.

2:33:27So again, this is what you just adopted as a reminder. The general fund balance at this time is 16.6 million dollars. And I say at this time, because this is what the Akfa shows at the end of fiscal year 22 we are still working the books just closed for well, we did a soft close at the end of the fiscal year, which was June thirtieth, 2023. There are still invoices

2:33:52coming in revenues coming in yet

2:34:03once we had work with our auditors to develop the new Aka, and we present that to the Council. I believe at that time that would be when we could have another discussion on allocating that surplus with respect to the policy you just adopted.

2:34:18So again, the general fund target is the first and foremost priority. We're at 34 right now we are. That's a checkmark. The Emergency Disaster Relief Fund, which is one of the things we would like to discuss with the with the Council tonight. Currently about 9 million dollars. We're just using that figure just as a

2:34:39to be able to to start the conversation and then going forward whatever actual payroll costs will be, we will come back with council for a plan for that.

2:34:49The minimum 33% to pension costs as as discussed, and any one time expenditures following that. So tonight, the discussion will be for the Council to consider taking action to full, to to

2:35:03actually create as part of the general fund restricted part of the general fund the Edr. Ff. And then consider taking action to create the section 1, 15. Trust. so to start off with the emergency Disaster relief fund again. This would be a restricted portion of the general fund. It will contribute to the overall general fund ratio

2:35:24as we discussed previously, as well, severe economic downturns or disasters, but that allows flexibility for the city council to decide what that actually is in our Acker, it would be listed under the general fund as a restricted portion.

2:35:39So when you look, when you look at the, if you look at previous actor act. First, there's a column that shows general fund and the various portions of the general fund. And this would be restricted.

2:35:49So currently, we're looking at about 9 million dollars, which is 3 months worth of payroll costs. And then we would, you know, after the act for is complete, and we would look through the budget process to discuss with the Council each year after the surpluses is acknowledged and and confirmed what that might end up looking like and what our payroll costs actually are, as you know, they fluctuate from year to year.

2:36:13Going. They.

2:36:14as as you know, raises or merit increases, or those types of things impacts payroll, also retirements. And those types of things. So Payroll isn't is it's fluid.

2:36:25They only go up. Yes, I would say, that's most likely trying to be, you know, trying to be diplomatic here.

2:36:36And as I, as I previously mentioned in the last item, the fan the Fab does plan to review and discuss possible revisions to this in the future. So this will also be part of the discussion going forward. So we would like tonight to have the City Council designated amount of the General Fund reserve balance to go to the Edrf. And at the end in a few slides I will show you a couple of scenarios that Crystal and I developed to just sort of, you know, begin the conversation.

2:37:06So the section 1, 15 trust, which we are also calling, which also be called a pension reserve. And like I said, our Craig Hill is here and can answer specific questions on this city council directed staff by motion in June of 2021, to establish this trust.

2:37:24So, as you know, unfortunately, we have had some obstacles, including severe staffing issues that have sort of gotten in the way of us completing this task. But last year in September there was a study session held joint study session held by the Fab and the City council, and Craig was there to be able to present on the, you know, the various options for funding pension costs.

2:37:47But per city council direction. What Staff has done is concentrated on looking at the 115 trust. So certainly Staff recommends this. Our financial advisor recommends this as the vehicle for addressing the pension liabilities

2:38:00at the risk of reading this. And II, reading Powerpoint, says, you know I'm not a fan of that, but I think this is really worth reiterating. First and foremost, a section 115 trust is irrevocable. It can, once you put the money in, it cannot come out except for the purpose of

2:38:18paying the pension costs or paying down the unfunded liability. It is flexible. It's not just for future costs. It's not just prefunding. It can also be used for our uao.

2:38:29and which is our unfunded acro liability. It provides greater investment security compared to Calpers. maybe I'll try not to comment too much on how Calpers invests.

2:38:41But this provides us the the control. If you will, over how this is invested, and not relying on calpers. It also provides flexibility compared to general funds. So this would be

2:38:55While we. The City Council, of course, does have a investment policy that you've all approved. This would be per that investment policy. But again, it gives us that flexibility, and it could, it would pretend it will certainly earn more interest than being in the general fund or being in life the local I forget at least. Oh, my gosh! I blank

2:39:14flexibility

2:39:29higher interest.

2:39:31It also allows us discretion to withdraw funds from that trust. What that means is, you know, kind of as a Council member, Quinto alluded to. If we have a really good year and we have a really high surplus, then we could pre-fund that we could put more money into the trust, and we could use that money if necessary, to pay current costs.

2:39:53So

2:39:54if you look in the budget all of under all of our wages and salary line items. We do have a line item for U Al. So it's divided out through each department. That's kind of a debt that we owe, but we assume that in our payroll costs. So when we pay out every every 2 weeks to the payroll, we're also sending our payments to Pers, and we're doing all of that. So that's already included in the budget that's being done.

2:40:19We're not prepaying it like you would maybe prepay down your capital or your principle of your mortgage. We're just paying as you go, so it's already budgeted. However, say, we have again an off year, and we know we need to reduce general fund costs.

2:40:34Most of our salaries and wages are through general fund costs. This allows us to pull from the fund and pay, which, so it could also be a relief on the general fund if we need it. So it it serves a couple of different purposes. And, Craig, please jump in if I'm if you have anything to add on this

2:40:52so it also allows us to be able to to have some flexibility again. Calling it a pension reserve is really a very accurate statement. It would be an asset. It would be. This is an asset in our city financial statements. So that's also important when we're looking at bond rating. And we're looking at all of those types of things that we are. Certainly, we know we will be improving based on our financial position now. But this is just a very good

2:41:17what this tells the bond raters, and also it'll I'll get to the in a second. Tells the State auditor that we've taken true action to be able to address our pension costs, and because it's an asset, it allows us to count that toward what we, the percentage of funding that we ha that we are responsible for

2:41:37And lastly, it's there. I'm sorry there's there should have been another bullet there that, I added. It's viewed favorably by the bond rating agencies, and the State auditor. This would fulfill the recommendation to to deal with pension costs. That's one of the sort of undone unfinished items in our updates to the State auditor. So setting this up and making this action would also complete that recommendation to the State auditor

2:42:08next slide

2:42:14is that not working

2:42:16oops. There we go. Nope, that's okay.

2:42:20No, that's good. Yep. So one of the when the after the study session in September of last year there was a

2:42:31There was a subcommittee or a working group created consisting of a Council Member Quito and Sheriff Haride Farmland. Excuse me

2:42:41to discuss, moving forward with perhaps doing an Rfp. For several different firms and looking at what the 1 15 Trust would look like. As you know we've had. Excuse me.

2:42:54we've had staffing issues and a change in our finance director. And so that ended up not being not, we did not have another meeting of that group. But in the interim 2 things happen. First and foremost, as you just approved, the Fab did

2:43:11work to create a funding mechanism for the 1 15 Trust, which was one of the tasks that the group was looking at. So the Fab did do that.

2:43:21so that's a really good positive development. And then, secondly, in consultation with Crystal, and again, Crystal, if you'd like to share a little bit more in looking at. There's, you know, there's probably about 3 or 4 firms that are very

2:43:37that work with section 1, 15 trusts that most agencies in California have used one of the 4. One of them is Calpers. The other 2 are Keenan and PFM. And in discussing with Crystal. And again, Crystal, if you wanna jump in. Crystal has worked with one of the firms that we've been looking at, which is called pars, which is the public agency retirement system she's worked with them, and actually, as far as

2:44:05And talking with Craig.

2:44:08we have have come to the conclusion that we would like to recommend that we would move forward with pars to administer the trust first. We already are working with them. We are already a client of pars. We have a 4 57 retirement program for part-time workers. They do not. This is in Lewis social security, and it's for our part-timers, and we've been using them for

2:44:31many years. I don't have the number in front of me, but this has been II would say at least 15 plus years that we've been working with pars on that program.

2:44:41They're recommended by other public agencies. I've certainly talked to my colleagues, and Crystal has used them in her previous city in Vacaville as well as Craig. And again, we can answer any questions. They provide the most flexibility on investment strategies. That means that if you know in our short staffing world that we're living in right now. We don't have an investment manager. We, you know, barely have time to do a lot of other things.

2:45:07So we don't have to be active investors. We don't have to constantly go to the go. We. They have provisions to be able to say, Okay, you guys, you know, here's here's our goals. You guys go ahead and take care of it. Or if we wanted to take the reins, and we wanted someday to have an investment manager to be able to look at at all of these different things, and we could do that. So this is definitely the most flexible, depending upon our situation, on how we would like to handle that

2:45:31so and costs are comparable. They're very. That was in actually the presentation that was given to you back in September. All the costs tend to be pretty comparable. And certainly pars works with the largest number of agencies in California for Section 115 trusts. So what if this were the direction of the Council? We would look to have a approval to sole source, and we would work with Nh. Advisors and Paris

2:45:56to develop the documents. And if again, we would only ask for direction for that tonight, and then we would bring that back to you at a future meeting.

2:46:03So

2:46:04again, our recommendation would be that the city council designates a portion of the balance to fund an initial deposit, and we'll talk about the amount of the deposit in the next in the scenarios, but certainly a sort of a seed funding, I guess, for lack of a better word to be able to open the trust and really, truly show

2:46:26a a real commitment toward funding pension costs, and then also again, if it if it. If the Council agrees with Steph's recommendation that we would explore the sole source with cars again. We're already a client, and we could bring that back to the city council.

2:46:45And next slide.

2:46:47Okay? And here are the scenarios. These are.

2:46:51you could do the math many different ways.

2:46:55but what we what we thought was was sort of most easy to understand would be just sort of using 2 different scenarios that assume different funding levels of the Edrf.

2:47:07And the reason we wanted to do that is so that the Council could see that.

2:47:12you know, if you could fully fund the Edrf at the 9 million amount, or if you did half of that, or you could do a portion of that. What that would look like. Kind of with all of the numbers, and you'll see the pie charts the yellow. It would be the

2:47:29The Edrf. And the green represents the unrestricted general fund. So, going through these option, one assumes half funding right now of the Ddrf. And according to the policy it would require Staff to look at the next couple of budget years to fund it.

2:47:45to get it to all the way to funding, and also with the policy you just adopted that part of the year on surplus could go to that but this is just that would be

2:47:56if the Council wanted to do just half. And again these numbers to move. This is just for an example. So half of the Edr Ff. Was funded this year. That would be the total of restricted would be 9% of general fund expenditures. That's just for illustrative purposes that gives 12 million dollars unrestricted

2:48:19the one time expenditures that this that was discussed during the budget process of the 1.6 million dollars there. Wanted to make sure that the Council saw how that impact would happen. That takes us to about 10 million dollars, which is a total overall would be 31, but the unrestricted would be 21.

2:48:39Steph is recommending that a million dollars of the fund balance be used to fund the section 115. Trust in both scenarios. Again, this is up to the Council.

2:48:47but we believe that 1 million dollars and Craig can verify. This is a significant beginning to fund this trust. It would be, I believe, very much favorably

2:49:01seen by not only the raiders, but also the State auditor, and it, you know, when you look at our

2:49:07huge amount of liability, I understand that seems like a small number, but it really is significant commitment on part of this council.

2:49:14I think. Sorry.

2:49:17I think, that Craig would tell you. You could certainly open the 1 15 trust and not put any money in it, or you could open the 1 15 Trust and put $100,000 in it. You could do that.

2:49:28and the city council could choose to do that. But we're recommending a million dollars to really, truly show that commitment and to really kick that off also because it's an investment fund. The more money that's in the fund, the more interest we would earn.

2:49:41So that is our recommendation for both of these scenarios. But if the Edrf is funded at half. and it looks what that would look like is 9.5 million dollars would be unrestricted, and the total Edr, including the Edrf, would be 28, which is

2:49:58still well above the 17 Gfo. A goal, and again does not take into account any future surplus. This is just the current balance we have right now

2:50:08and then an option, too. All of the same is true, except if you fully funded the Edrf at 9 million dollars.

2:50:16That leaves 7.6 and unrestricted, minus the 1.6 one time expenditures minus a million dollars for the section 1 15. Trust. Then that would leave 5 million dollars unrestricted, which is 10% of general fund. But, however, again adding that to the full 9 million, the Edrf. Would still remain at, or the general fund ratio remains at 28.

2:50:41And so again, these are just illustrative. But

2:50:44and you know, this is this is for discussion. II have to be honest my recommendation.

2:50:54is fluid. I know that the I've talked to the Council. I've talked to each of you. As far as on my

2:51:03in some of answering some of your questions. There's pros and cons to fully funding the Edrf. The con, the main con only con really being that there's left. There's less unrestricted funds for the Council to utilize.

2:51:18at the end of this fiscal year. However, that is, you know other, but on the flip side, fully funding the Edrf

2:51:26restricts that money, and absolutely provides a a true sense of of some of this, particularly with some of the discussion this evening. It does provide us with a very, very large and very firm safety net

2:51:41for anything to be able to go forward for the future. So and we'll get back to the slide. But I think there's one last slide just as far as next steps. So

2:51:52the staff so staff recommends that an amount be designated which would be up to the city council, both to from the Edrf.

2:52:00In any way, shape or form, and to fund the initial deposit of the 1 15 trust. And then we would also ask if it's a pro. The Council's plug pleasure that to direct staff and any advisors to work with pars to establish a one-fif section 1, 15. Trust that we could bring back to the City council for approval at a at a future meeting. And this would be

2:52:24The city's council could pass motions to provide direction to staff. So. crystal. If you want to put the scenarios back up there just again for the council to take a look at, and

2:52:36I'm looking at Craig, and I'm looking at Crystal. I don't know if you have anything you'd like to add and talk. Okay.

2:52:46sorry I was talking so much. I needed water. Good evening. Craig Hill. Nha, advisors. Good to see again. I think, to

2:52:54supplement a little bit about what the city manager just mentioned. We're really looking at this holistically right. So the action that you just took with regards to your reserve policies and this concept of adding a restricted fund to your general fund.

2:53:08What we've been primarily focused on over the last couple of years is really helping you build your financial health and your credit worthiness. Right? You've you've had the State. Look at you! You've had the rating agencies. Look at you, and to rebuild that strength. A lot of it is around the policies. So what you're talking about tonight.

2:53:28what you're approving and have already approved in the prior option per item is a critical foundation for any third party that's looking at the city

2:53:40to feel like you're moving in the right direction.

2:53:42and it's kind of aligning with what's going on with state controllers. That's all a a good thing. You're kind of killing 2 birds with one stone. But II wanna make sure that you all understand the concept of funding

2:53:55a section 115 Trust goes along with that idea of restricting funds so that somebody can have more faith in the organization that those will be there. They just won't

2:54:06disappear on a whim, you know, in one bad year. So it's it's important to while it sort of ties your hands on the same time it. It shows responsibility. And the way the rating agencies are really looking at local government right now, that's a huge plus it gets you it. It's a big step, and we're working with a lot of your peers in the East Bay and in the Bay area generally around building these

2:54:32you

2:54:33policies that give everybody else confidence that you won't get down to a 0 fund balance or a, you know a a small and and it's unfortunate that we see this with a a lot of the other agencies. So I just wanted to

2:54:46reiterate a little bit of what the city manager mentioned, and and really just kind of

2:54:51whether you you go with fully funding the restricted fund or not. It's a it's a big piece. In terms of the section 115. Trust. We do recommend that not only do you form it, but your or initiate the process of approving the section 1, 15. But you also do

2:55:10fund it to some degree. Personally, we would push for as much as you're comfortable with. Just as a good commitment but we we certainly think that it needs to be something, because we, unfortunately, we do have

2:55:26a lot of cities that will

2:55:29form them. And then they just forget about it. And so the fund is. The trust is 0 for years. So anyway, that's I, just my only comments.

2:55:40Yes.

2:55:42and with that we're certainly happy to answer any questions. Great. So are there any questions from council members?

2:55:50Hey? I have a couple

2:55:52about the 1 15 trust. So maybe.

2:56:00Mr. Hill, you can come back to the podium. This is a an investment fund. Correct. This we would be selecting like

2:56:09stock

2:56:10index funds or something to put this money into that we expect a return. That's correct. It is a think about it as a as another reserve that you have, but it is not

2:56:22as limited in your investment options that you otherwise have with your other governing funds. And so it does give you the ability to look longer. Term right? This isn't something where you're in and out of cash. You are taking a section 1, 15. Trust.

2:56:39really thinking about it for the long term. And so you're able to, you know, like you would your retirement account. Right? You're you're you're looking at a different horizon for what you're investing in. But but you're right. It is a. It'll be a compilation of any number of

2:56:55different types of investments. And that's what the administrator would do. Par's being the recommendation tonight. They have an active management approach, and they have a passive management approach. And you you can decide which kind of way you want your trust to go, and they'll say, great. We have a we have a program for that.

2:57:15And I was just wondering, in terms of track record of 1 15 trust. I understand that it's up to the individual councils to determine how much risk that they're willing to put their funds at to see what kind of return. But on on average I mean what you know. Stocks go up, stocks go down. So on average.

2:57:35how are how? How are the existing 115 trusts doing. Yeah, that's a good question. And I can't give you exact numbers. But II can tell you, in our research and going back and looking at all of the administrators, and how well they performed. They generally trend in the same direction that Calpers does.

2:57:54You can vision is there. They have great years, and they have bad years. What we generally are seeing from the administrators is they're less volatile.

2:58:01so they'll they may not have as great a year, you know, a 22 that Calpers might have, but they also don't have a negative. 22. They they tend to live in between those 2 extremes. But they will, they will follow it, like all of us would on a on a good year or bad year. Okay, so there there is, just for our understanding. There is some risk that we will put in a million dollars, for example, and in some years that may go down in some years it may be correct.

2:58:31Okay, so that there that we do, we are cognizant of the risk. Thank you. And then

2:58:39I had a question about the amount that we are proposing to put into the Edrf.

2:58:47So you know we have. Here are 2 scenarios at 4.5 million. 9 million. And

2:58:55I just want to understand if we don't fully fund the Edrf

2:59:02we will. Then that becomes the priority based upon our fiscal policy. So we say we have a surplus from this current fiscal year. It would go first to Edrf. So the an amount going to the 1 15 trust may not be 0, because we still need to fulfill the Edrf first. Is that correct? That's how the priority list is. The waterfall is listed in that order. Yes.

2:59:32so is that, you know I feel that because of that there's I feel more of an imperative to put more into the Edrf so that we can get to adding funding to the section 115. Trust. I'm I'm a little worried that if we start with a much lower amount

2:59:53that you know

2:59:54we won't be able to

2:59:57put as much aside, and though, you know, fulfill the the goal of the 115. Trust so, yes, so

3:00:16bottom line balance number be smaller

3:00:20if we were to fully fund it. However, I think that it really does demonstrate a commitment that our city is making, and it's our fiduciary. Do you the community to demonstrate that we are whole and we are solvent, and having that

3:00:34restricted fund. I think again it just it. It will substantiate the work that we have been doing, and I think that it is a worthy commitment for us to make to fully fund that Edrf. I think it's a good story.

3:00:49I'm also comfortable with sole sourcing our pension trust with Parse, and I think it makes a lot of sense. There isn't a lot of options out there in the landscape, and I do think that again. Markets do. There is volatility to the markets. I really appreciate the mayor for calling that out, but I do think that

3:01:09it's

3:01:09still very worthy for us to then make that investment again, to demonstrate to the community that we are serious about our pension liability. We don't want my my greatest fear with our pension liability is, it's impacting our current staff.

3:01:24And I really want to make sure, just to protect our own staff here, that they know that we are very

3:01:31cautious and careful when it comes to these funds. So I I'm leaning towards option 2.

3:01:40Any other comments. Councilmember. Oh, thank you, Mayor.

3:01:45I'm looking at the options. And I also like option, too. And I wanna make sure that you know like I said earlier, when it comes to the 1 15 trust which we did

3:02:00approve, and and that is that was approved way back in 2,021

3:02:06and again I thought we would get there last year, and that was my word to residents in El Cerrito. But we're gonna you know, II look forward to making that dent this year. So but

3:02:19but I want to make sure that we have the option to pay more in the future when we go through

3:02:26some prosperity and good times and good government as always.

3:02:31you know, paying for your unfunded liabilities like this, and

3:02:35and I, you know, looking at what other cities are doing, and in good times they put big depths in there. So you look at the cities and 19 cities, and Contra Costa County. They have a lot more money put in than we have, because we haven't put any in there yet, but I look forward to what catching up with you. I think the 1 15 trust is a way to go. And

3:02:56I look forward to that so definitely. Option 2 would be my recommendation. Looking at the Edr ref. And looking at what has transpired recently around the world. We, we need to fund that. And this will show to our residents, and it will show to

3:03:18we have the State Controller and and our leaders in Sacramento and the Assembly members and senators that make up

3:03:28a committee that. Hopefully they can take us off that list finally, and look forward to what? Visiting Sacramento in the near future, and encouraging them to just get us off that list and so. But you know it's it's taken a number of years to get back

3:03:52to where we are, and just so proud of the fad committee to help us get there and and to staff and our new staff. Thank you. This is fantastic and and I wanna say, thank you to City Manager Karen pincus for doing exactly what this Council asked you to do. You have done it, and

3:04:16and and this is a huge huge work in progress that all of staff was a part of we had some lean, lean times, and and we had to make these tough, tough decisions. But this is getting us back and proving to Sacramento that

3:04:36we're forced to be reckoned with, and we have turned it around and cities across. California will wanna learn how Karen was able to do this. So I look forward to having Karen speak in future meetings with Cal cities in the city managers.

3:04:54the International City managers associate. And what you were able to do because you did this and thank you for that.

3:05:05Yeah, thank you. I think these are 2

3:05:10good options. I

3:05:14actually my assumptions were wrong. I mean II

3:05:19I do like with the specter of Lina. The fully funding of the Edrf is important to our community, but I was assuming that probably to be a little more flexible as far as funding left over that

3:05:33this council might pick option one. and if that was going to be the case. I was. Gonna say that, and ask counsel if there was any

3:05:42language you could have that would, in fact, if we had option one, say that it's Council's goal to meet the full full amount of Ed. Rf. By 2820 28.

3:05:55But it's not sounding that way to me. It's sounding like the Council probably wants to go full throttle here, so

3:06:04I can go with that

3:06:08Councilman. Weissinger.

3:06:10Have nothing here. Okay, so I'll open it up for public comment. Now is the time for members of the public who wish to provide public comment on this item in person. Request to speak can be submitted to the city clerk and remote speakers can use the raise hand, feature to request, to speak. Please remember to identify yourself and your city of residence at the beginning of your comments. City clerk, please proceed.

3:06:35I was gonna say, I apologize. I had meant to call the chair up to myself. Not a financial advisor

3:07:02other. Some of my concerns were around the initial balance, the main, the minimum management fees, the volatility and the risk that's associated with section 115. However, I haven't looked at as deeply. I'm not as well informed as the advisor. So yeah, support option, too. Thank you very much.

3:07:18Thank you.

3:07:19hey? Then we we'll go to our remote request to speak. We have 2 at this time. Our first is Irish share. Now, Ira, you can

3:07:28Ira Sharenow: should be able to unmute and begin your time now. Great! Thank you. I'm still familiar now, anyway. First of all.

3:07:41are you still with us? Yes.

3:07:45no, I what's happened here? Can you hear me?

3:07:50That's talking? But we can't. It does. Yeah, it says it's talking.

3:07:56I'm gonna go to our next speaker. If you could try disconnecting your audio and reconnecting, we'll come back to you. Let's try our next speaker. Howdy can you see if we can hear you?

3:08:10Hello! Accounts.

3:08:33hey?

3:08:36Ira Sharenow: Alright! Can you try again for me? Please thank you for your patience

3:08:52for asking the question about risk. So that's basically my main question

3:08:57can. So can the section 1, 15 lose principal

3:09:02and have some 1 15 trust actually lost money? My understanding is because I've looked at the Calpers 1 15, they've actually lost money on a number of occasions.

3:09:14And so another question I have is, what have been the returns for the 1 15 that you're thinking of investing in compared to to late.

3:09:24And what is the risk and use a technical term? What's the bar?

3:09:28We're value at risk?

3:09:30So so, yeah, actually, I don't really see the purpose of this.

3:09:36Why not? Just? I think you should consider making it that making it just paying down the debt.

3:09:42and especially do so before the Calpers reassesses the amount. That so so I'm not an expert on that. But II certainly hope you look very closely at that, because if they change the discount rate that can have a very, very significant impact. And so I think the Council really needs to consider that carefully. Okay, that's it. Thank you very much.

3:10:08Howdy Goudey: Thank you. Thank you. And then we'll go to our next speaker. Howdy, how do you should be able to unmute and begin your time. So I'm supportive of what your

3:10:22Howdy Goudey: considering, I just

3:10:25Perhaps this is unnecessary to mention, since it is, I think, an adopted policy of the Council, but I wanted to remind you of the since this is an investment remind you of the

3:10:36you know investment policy that Fab proposed. And you approve. That includes a

3:10:44restriction to not invest in in fossil fuel

3:10:48assets. So I just wanna

3:10:52confirm and make sure that that is what transpires and consistency with that adopted policy and

3:11:00and also, it does seem prudent to, you know, stay on the less risky side of of those investments. But thanks.

3:11:09thank you, Mayor, that concludes our request to speak on this item. Great. Thank you very much. Are there any additional council comments or questions? I did really appreciate that comment around making sure that we are adhering to our fossil fuel investment policy. So it would be great if we can get more information on that

3:11:29as vice chair and clean energy and member of the Environmental Policy Committee. I want to let residents know the importance of working with our corporations and know that it's our corporations and yep, the fossil fuel industry. They are part of the equation and part of the change of getting to alternative fuels and green hydrogen. And

3:11:58and we are, we have this great project that is, will be built at the Republic services that has been approved by the Richmond City Council, and they will be creating green hydrogen

3:12:14from our green clippings, from our green bin so! But hearing what the the Sierra Club that had no policy whatsoever on green hydrogen, and to hear folks saying no to the fossil fuel and industry. I just wanted to point it out the good things that are happening with our corporate, you know, corporations

3:12:39across the country, and that includes chevron. So I want to say to share, you know, to our residents, saying, don't invest

3:12:47on fossil fuel. Know that there is an other side with green hydrogen. And and we are. This is part of the circular green economy that we have been working on in the State of California, and that calcity supports. So yep, just wanted to point that out. Thank you.

3:13:07Questions or comments on this side. So

3:13:12I do have a a follow up question to to Craig Hill, if he please. Come back up. Thank you. I'm giving you some exercise this evening.

3:13:22So

3:13:24it's been a while, I think, since. We had that presentation from you on the 1 15 trust, and I know at that time we were looking at options that looked at 1 15 trust, or possibly of a bond issuance to

3:13:38generate enough funding to address our pension liability issues. And in all these conversations there there are reasons why you're proposing that we should do this 1 15 trust. And I was wondering if you could elaborate on kind of

3:13:53why, why, the 1 15 trust rather than just paying down calpers. Now, right? So just as a quick summary. There were basically 3 alternatives that we talked about back a few years ago. First one being

3:14:07you could certainly finance your way out of Calpers right? You could do a pension bond, and at the time rates were much lower, and the idea would be that you would pay off the liability. Now have a you know, a new mortgage payment through a bond. The second one was the adp, right where you're giving chunks of cash

3:14:26to calpers, and they're immediately applying it to towards your U Al. Or your balance, your liability. The third option is the 1 15. Trust. The reason that we have recommended going with the 1 15 Trust as the city manager alluded to. During her conversation is.

3:14:43it's actually giving you the perfect balance of opportunities. It isn't. If once you give the money to to Calpers, you can't get it back there. There is no future

3:14:56flexibility that you have. Yes, it theoretically lowers your future payments. But it doesn't. You don't control that destiny right? That's whatever they do with their investments and and their returns with a 1 15. You're you're locking the money up in a trust.

3:15:12But you're you. Could one take a chunk out of the trust and give it to Calpers as an Adp payment, so that that option still exists. 2. You can let it grow on your balance sheet. So you have an asset that is offsetting this liability, this pension liability over time. And you're you're just kind of managing it or measuring it as you go along.

3:15:35But 3 the and this is the big one that we really think is important is it gives you the financial and the cash flow flexibility to apply

3:15:45the balance in the trust, or any funds that are in the trust to potentially make the normal pension payments in a fiscal year where you were under duress. So you can. You know you can't use that money to go

3:16:01pay for salaries, and you can't use it to pot. Buy vehicles, but you can use it to pay that portion of your payroll that otherwise would need to be budgeted. So it's something that we don't want to see happen. But it's a huge safety line that you don't get under any other option. So this is why we think the 1 15 is really giving you

3:16:23you know, the best of all options, and you know we think about it like a 5 29, even, you know, for your kids. It's yeah. You really wanted to go to college and use the money. But if they don't end up going to college. There's still ways you can apply that money towards high school tuition, or whatever. So I did that answer your question. And then, in terms of our passive or active investment program.

3:16:49we also have the the option to have sustainable funds or more climate, friendly funds. Or, yeah, so that that's actually a great I was taking notes while the the conversation was going on. Because I think it's a it's a very important

3:17:04initial conversation to have with the par's representatives as they start to formulate what strategy, investment strategy, knowing what your your concerns are and what your restrictions are, they'll build that into the model. That would be your investment strategy. And when we talk about passive versus active, you know. Active. II use the word day trader.

3:17:29not really something anybody should be doing. But it's more really about selecting what types of investments do we wanna be in, you know, are we doing impact investing? Or are we just trying to maximize the return?

3:17:43Obviously nobody can guarantee what you know what you're going to get in the future, but but having restrictions on what not to get into is absolutely a a key

3:17:55variable that they'll want to build into. The recommendation that they would bring back to the city

3:18:00cause it. It just seems so likely that even Calpers will divest at some point in the future, and we want to be ahead of that. So.

3:18:10okay.

3:18:12any other questions or comments?

3:18:17Okay, thank you very much.

3:18:20Okay, so I think we have a number of recommendations. so I think maybe

3:18:29we should take each of them

3:18:33and then allow us to kind of

3:18:36get to the the reserve fund balance question. If that's okay with my colleagues.

3:18:45so let's start with the

3:18:48establishments and the initial deposit of the section 115. Trust. Is there a motion

3:18:59and an amount. Hmm. II wouldn't move. 1 million dollars goes to the 1 15, and that's that would be annually. Is that correct?

3:19:10This would be the initial funding. Is there a second?

3:19:15Thank you.

3:19:18I'll give that one to councilmember. Weissinger. Okay, we have a motion, and a second on

3:19:24designating 1 million dollars from the General Fund Reserve balance to fund an initial deposit into the section 1, 15. Trust.

3:19:32and sorry to clarify. This second was Council Member Weissinger. Yes, okay, thank you. All those in favor. Please, say I. Any opposed motion carries Nh. Advisors to establish the section 115. Trust by working with pars and bringing program details for City Council approval at a future council meeting by council, member.

3:19:59second, second by Mayor Pro-chem, Rudnick.

3:20:02All those in favor, please say aye, any opposed motion carries.

3:20:06Okay? And now we are at the meaty question. So is there a motion to designate an amount of the general Fund reserve balance to create and fund the Edr. Ff, I move to fund the Edrf by 9 million dollars.

3:20:22Is there a second?

3:20:25Second? Okay. Second, by Councilmember Weicinger. All those in favor. Please say, Hi, any opposed

3:20:33motion carries? Okay.

3:20:38thank you very much. I think we have just put ourselves on a very good financial footing, and

3:20:45and we will hopefully never again be in the position to spend hours to discuss how to re-establish our fund balance.

3:20:56Now.

3:20:57great! Thank you, everyone. And our next item is city council and local and regional liaison assignments.

3:21:06Are there any Council reports?

3:21:10Thank you, Mayor. I wanted to report as representative for Cal cities.

3:21:20exciting news that you know where I've been working and helping out on vendors, and we will have

3:21:27a local vendor here that is working on green hydrogen with chevron, and they will be at the Expo Booth. So all the mayors and city Council members in California can see exactly what the green hydrogen economy is going to be, and and we have a hydrogen station coming in on Central and Carlson, and that project that will be

3:21:52of Republic services in Richmond will be delivered by Haizan motors, which is a hydrogen heavy truck

3:22:03company, and they will be distributing green hydrogen all over the Bay area. So and that, and and we'll see more of that in the future. So when I say you know look at everything don't just say no to fossil fuel, because they're part of the solution. And and they're and they want to do this. They are doing this. And that's why chevron is investing heavily on green hydrogen. Thank you.

3:22:33Thank you. Yeah.

3:22:44Green hydrogen vehicle

3:22:46and is waiting for the Union. 76

3:22:50outlet there. And it's was quiet. It was wonderful, and it was very exciting. In addition to another clean alternative on transportation.

3:23:00Last Saturday the Contra Costa Tran, a transit authority. Ccta presented its presto car at the

3:23:08elsewhere, at a plaza at the farmers market and had a demonstration there where a lot of people came and looked at it, and for first and last

3:23:19mile and on a fixed route

3:23:21to see that we have a vehicle that a lot of testing left. It's not. It's not a done deal by any means, and I'm have a critical eye to some of those things. But if we're taking away housing here in El Suito. There's options. Hopefully that these may go up and down. Moser, get people who are Bart stations and our bus our bus lines exactly for getting rid of the parking. We need to have some alternatives to get people to transit, so they can still get to work to where they want to go. So thank you very much.

3:23:49Thank you. Council member. Yes, I just wanted to report as we saw last month at our July meeting I was represented El Cerrito, at the National League of City Summer Conference meetings. I know we had some great conversations, especially in our Federal Advocacy group and in our small city group. And you know, I look forward to having more conversations. We haven't talked as much about how we bring more funds into our community specifically through

3:24:15things like travel. And there's a lot of outside conversations outside of cities outside of states. But I'm happy to see those conversations happening specifically with our small cities, how we can bring more money into our plan. Bounce through travel. And we're just looking forward to our March meetings. We're pending pending membership to the member large board of the Lgbtq

3:24:36Constituency group as well as the Federal Advocacy Group for Public safety. So, looking forward to that, and just wanted to make sure the city members knew where I was when I was missing in the Mu the meeting last month.

3:24:50Okay, so I have a couple of report outs. on July twentieth I attended the Abag Executive Committee, and I was formally added to their Housing subcommittee. At that meeting we were informed that the CPU. C. Has refunded Bayren so 171 million dollars for rebates, so hopefully that will encourage people to do additional greening work, and that will be supported by rebates.

3:25:20On July 20 third, I was at Saint Peter's. See me church for pastor appreciation. On July the 20 fifth I did a housing talk for the Elsrido Democratic Club on July 20 seventh I attended the West County Mayors and supervisors meeting.

3:25:34and we talked about our community schools, initiative and having representatives from Council which will be our council member Weissinger will be our representative and a staff person, which we I believe, is Chris Jones, recreation director, recreation director.

3:25:51So August First National night out I was attended some neighborhood gatherings with Chief Keith and Steve Andrew Pinkus. August third I am on the East Bay Economic Development Alliance Executive Committee meeting.

3:26:04and I also attended that same day the Contra Costa County Mayor's conference, where I did a presentation on collaboration between cities and counties, to address homelessness with Supervisor John Joya

3:26:18on August ninth our ad hoc subcommittee meeting ha! Occurred for our advisory bodies with Councilmember Fideli, and on the August tenth or August twelfth I had a meeting with members of Keep Elserido fires.

3:26:34So that is what I have been up to. Before we adjourn. I was wondering if we could also ask city manager to provide us with an update on kind of where we are with wildfire preparedness and emergency preparedness, because I know there's a lot of work that Staff is doing

3:26:53against them. It would be great to get an update. We'd be happy to put something together for the next council meeting, if that would be at the pleasure of the Council.

3:27:02Certainly. Thank you. Thank you. Okay.

3:27:08It is now 9 38 Pm. And we are adjourned the next regularly scheduled city Council meeting is Tuesday, September nineteenth, 2023, at 6 pm. Thank you very much. Everyone. Thank you especially for the people that stay to the bitter ends.