Apr 02, 2025 Budget & Finance Commission

[A. CALL MEETING TO ORDER]

[00:00:04]

SPECIAL MEETING OF THE BUDGET AND FINANCE COMMISSION AT 6:30 P.M.

STARTS NOW. CAN WE HAVE A ROLL CALL, PLEASE?NOW, PLEASE RISE FOR THE PLEDGE OF ALLEGIANCE.

MAY BE SEATED. THANK YOU. NEXT ITEM WE HAVE IS TWO, TO APPROVE THE ORDER OF THE

[D. APPROVE ORDER OF AGENDA]

[E. BLUE FOLDER ITEMS - ADDITIONAL BACK UP MATERIALS]

I WILL MOVE TO. DID YOU WANT TO START WITH THE CITY MANAGER ITEM?

[F. CONSENT CALENDAR]

NO. YES. THE CONSENT. ALL IN FAVOR? DO WE DO WE NEED A ROLL CALL, I FORGET, DO WE NEED A ROLL CALL INDIVIDUAL FOR CONSENT CALENDAR? IT CAN. YEAH, SURE. SO IS THERE A MOTION TO APPROVE THE CONSENT CALENDAR, PLEASE? SO MOVED. SECOND. ALL IN FAVOR? AYE, AYE, AYE.

ALL OPPOSED? NON. CONSENT. CALENDAR. IS THERE ANY PUBLIC PARTICIPATION IN NON-AGENDA ITEMS?

[H. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS]

ALL RIGHT. SO THIS IS ONE WE WILL HAVE J1.

[J. ITEMS FOR DISCUSSION PRIOR TO ACTION]

IT'S THAT TIME OF YEAR AGAIN WHERE I GO BEFORE EACH OF THE COMMISSIONS.

AND THERE IT IS, FULLY PRESENT. BUT LISTEN TO THOUGHTS YOU MIGHT HAVE ON THE DEVELOPMENT OF THE UPCOMING FISCAL YEAR BUDGET.

I'M HAPPY TO GIVE YOU A LITTLE BIT OF A PRIMER ON KIND OF WHERE WE SEE THINGS TODAY, RECOGNIZING THAT THAT'S GOING TO BE SUBJECT TO CHANGE AS WE REALLY DRILL INTO ESTIMATED REVENUES AND CORE EXPENSES MOVING FORWARD. BUT JUST WANT TO SAY GOOD EVENING AND THANK YOU FOR ALL THE WORK THAT YOU DO AS VOLUNTEER COMMISSIONERS, REALLY APPRECIATE IT. JERRY, IN PARTICULAR, YOUR WORK RECENTLY HELPING US OUT WITH THE SELECTION OF OUR MUNICIPAL FINANCIAL SERVICES ADVISOR FOR OUR MEASURE, FP BOND ISSUANCE. THAT WAS A GREAT, GREAT HELP.

THANK YOU, COMMISSION, FOR LENDING US JERRY. I BRING A LOT OF EXPERTISE TO THAT.

SO WE'VE GOT A GOOD, GOOD ADVISOR ON BOARD. AND WE'RE OFF AND RUNNING WITH MEASURE FP.

AND THAT CANDIDLY IS ONE OF OUR BIG FOCAL POINTS GOING INTO THE BUDGET THIS YEAR, MAKING SURE THAT WE ARE FOCUSED IN ON THAT AND THAT WE ARE PROVIDING PROPER ATTENTION AND SUPPORT FOR THE DEVELOPMENT AND DESIGN OF THOSE PROJECTS AND THE EXECUTION OF THAT VERY IMPORTANT PUBLIC SAFETY BOND.

SO WE ARE STILL VERY ECSTATIC ABOUT THE RESIDENTS SUPPORT FOR MEASURE FP, AND WE'RE REALLY EAGER TO GET TO WORK.

JUST A QUICK UPDATE ON WHERE WE'RE AT WITH THAT.

WE HAVE OUR, AS I MENTIONED, OUR FINANCIAL SERVICES ADVISOR ON BOARD.

WE'VE SELECTED BOND COUNSEL. WE'VE HIRED BOND COUNSEL.

WE HAVE SELECTED DISCLOSURE COUNSEL AND WILL BE APPROVING, HOPEFULLY THEIR AGREEMENT, THEIR RETAINER AGREEMENT ON APRIL 15TH.

WE ARE OUT TO BID FOR WHAT WE'RE CALLING SORT OF THE OVERALL MEASURE FP PROGRAM COORDINATOR CONSULTANT THAT WILL REALLY OVERSEE ALL ELEMENTS OF CONSTRUCTION, DESIGN, DEVELOPMENT AND PROCUREMENT.

AS WELL AS CONSTRUCTION MANAGEMENT. THAT'S A BIG CONTRACT.

THOSE ARE THE BIG FIRMS. WE WERE PLEASED TO SEE 11 SUBMITTALS AS PART OF OUR PROPOSAL DEADLINE.

SO WE'RE BEGINNING TO EVALUATE THOSE DIFFERENT THE DIFFERENT GROUPS THERE THAT HAVE SHOWN INTEREST BUT REALLY, REALLY EXCITED ABOUT THAT. I'M BRINGING SOMEBODY ON BOARD TO ASSIST OUR STAFF TO PROVIDE PART TIME PROJECT MANAGEMENT FOR US TO HELP KEEP THE PAPER MOVING. THERE'S A LOT OF SCHEDULES TO COORDINATE. THERE'S A LOT OF WORK TO DO THERE.

[00:05:04]

IT WILL BE INVOLVED. POLICE, FIRE, OF COURSE.

PUBLIC WORKS. MY STAFF OUT OF THE CITY MANAGER'S OFFICE.

SO A LOT OF LOT OF ACTIVITY THERE. YES JERRY.

ANY IDEA WHEN YOU WHEN THE PROJECTS WILL START? I KNOW THIS THIS WORK IS A LOT OF WORK AHEAD OF TIME.

BUT WHEN'S THE FIRST SPADE OF DIRT GOING TO BE.

YEAH, I THINK I THINK SHOVELS IN THE GROUND PROBABLY YEAR, YOU KNOW, YEAR AND A HALF FROM NOW MAYBE IF ALL GOES WELL, WE HIT A LOT OF GREEN LIGHTS. YOU KNOW, THE DESIGN DEVELOPMENT PROCESS WILL TAKE ABOUT A YEAR.

WE SHOULD HAVE OUR PROGRAM COORDINATOR UNDER CONTRACT HERE IN THE NEXT COUPLE OF MONTHS.

I WOULD THINK WE PROBABLY WON'T ISSUE SUBSTANTIVE BOND FINANCING FOR A LITTLE WHILE.

WE DON'T WANT TO GO OUT AND BORROW MONEY AND START THE CITIZENS REPAYMENT PROCESS UNTIL WE NEED THOSE FUNDS AND ARE READY TO EXECUTE THEM.

SO WE'RE GOING TO BE VERY JUDICIOUS ABOUT THAT TIMING AND EXECUTION.

SO WE'RE REALLY, I THINK, REALISTICALLY, A STILL OVER A YEAR OUT BEFORE WE'LL SEE SHOVELS IN THE EARTH AND YOU KNOW, LIKELY MORE LIKE 16 TO 18 MONTHS. SO A LOT A LOT OF DESIGN WORK TO DO BEFORE WE'RE READY TO GO.

AND A LOT OF WORK TO DO TO FIGURE OUT WHAT WE'RE DOING WITH TEMPORARY FACILITIES WHILE WE MOVE THOSE PROJECTS FORWARD.

SO A BIG PART, BUT THAT REALLY WILL BE A MAJOR FOCUS IN 25, 26.

THAT'S A BIG, BIG CAPITAL EFFORT AND ONE THAT WE WANT TO MAKE SURE WE HAVE PRIORITY RESOURCES ALLOCATED TOO.

ON A OPERATING BUDGET BASIS. SOMEWHAT BUSINESS AS USUAL.

WE'RE ABSORBING NEW COSTS. THE COMMISSION IS FAMILIAR WITH THIS. WE HAVE MULTIPLE MULTIYEAR AGREEMENTS WITH OUR BARGAINING GROUPS, WHICH IS GREAT TO HAVE CERTAINTY IN COST AS IT PERTAINS TO LABOR, BUT WE WILL BE ABSORBING YEAR OVER YEAR EXPENSE EXPENDITURE INCREASES THERE DUE TO THOSE AGREEMENTS IN THE FISCAL YEAR 25-26. WE ALSO, AS THIS COMMISSION KNOWS, HAVE AN UNFUNDED ACCRUED LIABILITY PAYMENT THAT WILL BE DUE NEXT FISCAL YEAR THAT WE'LL BE PULLING INTO THE BUDGET.

WE DO HAVE SOME INCREASED REVENUE THAT WE WILL BE ABLE TO POINT TO IN THE FORM OF ADDITIONAL PROPERTY TAX VALUATION.

WE HAD A VERY STRONG REAPPRAISAL YEAR OVER YEAR, ANOTHER 5%, 5.3% INCREASE THERE.

SO WE'LL SEE SOME ADDITIONAL TAX INCREMENT THERE.

WE ARE STARTING TO GET A LITTLE BIT CONCERNED ABOUT BEING FLAT IN THE TRANSIENT OCCUPANCY TAX AND SALES TAX CATEGORIES.

THERE'S SOME ECONOMIC HEADWINDS SORT OF CIRCULATING AT THE NATIONAL LEVEL.

CERTAINLY WITH THE INTEREST MARKET WHERE IT'S AT, I THINK WE'RE SEEING A LITTLE STAGNATION THERE.

SO WE'RE NOT SUPER BULLISH ON OUR TAX INCREMENT OUTSIDE OF PROPERTY TAXES.

SO WE WILL BE VERY AUSTERE AS WE GO INTO EVALUATING EXPENDITURE PROPOSALS FROM OUR VARIOUS OPERATING DEPARTMENTS.

I REALLY SEE OUR CHARGE THIS YEAR IS TO KIND OF KEEP STAFFING LEVELS WHERE THEY'RE AT AND AVOID ANY KIND OF SERVICE CREEP. TO THE EXTENT POSSIBLE DECISION PACKAGES WILL BE CONSIDERED WILL LIKELY BE REORGANIZATIONS RATHER THAN NEW SPENDING OR NEW PERSONNEL.

AND WE'LL BE LOOKING TO ABSORB SOME OF THE MORE SUCCESSFUL ONE TIME PILOT PROGRAMS THAT WE'VE HAD IN THE BUDGET THE LAST FEW YEARS.

ONE GREAT EXAMPLE OF THAT IS OUR CROSSING GUARD PROGRAM, WHICH IS EXPANDED FROM 12 TO 14 LOCATIONS TO NOW 27.

AND THERE'S MANY MORE THAT HAVE BEEN IDENTIFIED IN THE COMMUNITY FOR PERHAPS SUPPORT.

WE'VE REACHED OUT TO THE SCHOOL DISTRICT TO TRY TO HELP US WITH THAT EXPENDITURE.

WE'VE REACHED OUT TO THE CITY OF HERMOSA BEACH TO HELP PERHAPS PROVIDE ADDITIONAL FUNDING WITH OUR PROSECUTION SERVICES.

SO WE'RE SEEKING REVENUES WHERE WE CAN. WE'VE HAD SOME SUCCESS IN OUR REVENUE COLLECTION FOR PROGRAM FEES, PARKING METERS, ETC. WE'RE SEEING GROWTH YEAR OVER YEAR THERE, AND I THINK WE'LL SUSTAIN THAT GOING FORWARD.

SO SOME GOOD NEWS IN THE BUDGET, I THINK SOME, SOME MAYBE SOME TREPIDATION IN CERTAIN AREAS GOING FORWARD.

SO AGAIN, WE'LL BE VERY CAREFUL WITH THIS YEAR'S PROPOSAL.

JUST A QUICK ONE. DO YOU SEE ANY REDUCTION IN REVENUE AS A RESULT OF THE COUNTY'S OBLIGATIONS WITH RESPECT TO THE FIRES AND SOME OTHER MATTERS THAT THEY HAVE? GOOD QUESTION. YOU KNOW, WE WON'T BE HIT BY PROPERTY REAPPRAISALS THAT MIGHT OCCUR IN THE DESTRUCTION ZONE.

WE WILL BE IMMUNE FROM THAT. IS THERE THE POTENTIAL FOR CERTAIN STATE AND OR COUNTY FUNDS TO BE DIRECTED THAT WAY THAT MIGHT HAVE OTHERWISE BEEN AVAILABLE TO US? THERE'S THAT POSSIBILITY, BUT WE DON'T WE'RE NOT SUPER RELIANT ON THAT TYPE OF DISCRETIONARY FUNDING.

SO IF WE DON'T RECEIVE A BUNCH OF PUBLIC SAFETY MONEY FROM EITHER THE STATE OR THE COUNTY.

HISTORICALLY. SO I THINK WE'RE LIKELY. OKAY. I THINK THE BIGGER ISSUE FOR OUR REGION IS GOING TO BE WHAT DOES THAT REBUILD DO TO INFLATE, PERHAPS OUR COST OF CONSTRUCTION, WHETHER IT BE MEASURE FP TRANSPORTATION PROJECTS AND COMPETING

[00:10:01]

YES, SIR. DO YOU DO YOU HAVE ANY PLANS OR ANY THOUGHTS ABOUT DOING SOMETHING SIMILAR TO WHAT'S BEING DONE AT THE NATIONAL LEVEL, WHICH IS WHAT THEY CALL DOGE. DOGE. DEPARTMENT OF GOVERNMENT EFFICIENCY? IN MY EXPERIENCE, AND I'VE SPENT ALMOST 50 YEARS IN IN THE PRIVATE SECTOR, FOR PROFIT, NONPROFIT.

AND I'VE SEEN IN EVERY COMPANY THERE IS ALWAYS ROOM FOR IMPROVEMENT.

AND IT'S A LOT OF TIMES IT'S JUST THE FACT THAT IF IT ALSO FITS, THEN WHY BOTHER? AND ESPECIALLY WITH THE TREMENDOUSLY RAPID ADVANCES IN TECHNOLOGY, I THINK YOU'RE GOING TO SEE SOME VERY INTERESTING OPPORTUNITIES. YEAH. NO, IT'S A GOOD POINT. I WOULD SAY WE PERFORM A DOGE LIKE EXERCISE EVERY YEAR.

I MEAN, WE'RE CONSTANTLY LOOKING FOR EFFICIENCY.

THAT'S TO MY POINT. EARLIER ABOUT REORGANIZATION OF STAFF OR EVEN WHERE WE CAN REPLACE PERHAPS VACANT PERSONNEL WITH MORE EFFICIENT MODES OF OPERATION TECHNOLOGY THAT'S BEEN TECHNOLOGICAL.

TECHNOLOGICAL IMPLEMENTATION HAS BEEN A BIG FOCUS OF OURS FOR THE LAST COUPLE OF YEARS.

WE'RE STARTING TO SEE THAT ROLL OUT IN OUR BUILDING DEPARTMENT, PLANNING, ENGINEERING.

SO WE WE'RE DOING COST SHARING WITH CONTRACT SERVICES.

MIKE COOK HAS DONE A GREAT JOB IN IT REDUCING EXPENSES.

SO WE, WE TAKE THAT MINDSET EVERY YEAR WHEN WE GO INTO BUDGET.

WE'RE CONSTANTLY EVALUATING WAYS WE CAN SAVE MONEY AND DO THINGS MORE EFFICIENTLY.

PUBLIC SAFETY IS A GREAT EXAMPLE OF THAT. WE'RE LEVERAGING A TON OF TECHNOLOGY TO DEPLOY A MORE ENHANCED RESOURCE WITHOUT HAVING TO BRING ON NEW PERSONNEL.

SO BUT YEAH, WE'LL, WE'LL, WE'LL DO SOMETHING NOT QUITE WITH THE, WITH ALL THE THE POMP AND CIRCUMSTANCE PERHAPS THAT, THAT YOU'RE SEEING AT THE NATIONAL LEVEL. BUT WE ALWAYS VET AND EVALUATE OUR BUDGET YEAR OVER YEAR TO SEE WHERE WE CAN FIND SAVINGS AND WHEN THAT, WHEN THAT PRESSURE RISES, WHEN WE HAVE NEW LABOR COSTS OR WE HAVE NEW PENSION COSTS, WHICH WE'RE EXPERIENCING, THAT FOCUS GETS EVEN SHARPER. WELL, INTERNALLY, IF YOU'RE DOING IT, THAT'S GREAT.

BUT I THINK IT MIGHT BE HELPFUL IF YOU HAVE SOMEONE FROM OUTSIDE, TAKE A LOOK AT IT, BECAUSE THEY MAY SEE SOME THINGS THAT YOU MISS. YEAH, SURE. YEAH, YEAH. AND WE'RE ALWAYS OPEN TO WHEN WE HAVE OUR AUDITS OR REVIEWS, WE'RE LOOKING FOR THAT INPUT, THAT THIRD PARTY INPUT.

SO APPRECIATE THE THOUGHT. YEAH. SO FROM A FROM MY STANDPOINT THAT'S KIND OF WHERE I SIT.

YOU KNOW AS I SEE IT, WE'VE GOT, YOU KNOW, 45 DAYS YET ROUGHLY BEFORE WE HAVE TO PROPOSE AND PRESENT THE BUDGET.

SO WE'RE STILL ON THE EARLY PHASES OF DEVELOPING THE DOCUMENT AND WILL STEPHANIE AND I AND HER TEAM, AARON AND THE DEPARTMENT HEADS WILL BE WORKING THROUGH THAT NOW FOR THE NEXT SEVERAL WEEKS AND, AND REALLY LOOKING TO BRING AS COST EFFECTIVE A BUDGET AS WE CAN TO THE CITY COUNCIL.

ONCE I TURN THE DOCUMENT OVER, IT'LL BE THEIRS TO CONSIDER AND DELIBERATE ON.

THEY ULTIMATELY MAKE THAT FINAL CHOICE. AND UNLIKE THE FEDERAL GOVERNMENT, WE HAVE TO BALANCE OUR BUDGET EVERY YEAR.

WE HAVE BEEN DILIGENT ABOUT THAT EVERY YEAR FOR, FOR MANY, MANY YEARS.

SO THAT'S GOOD. WE'RE IN A HEALTHY PLACE IN MANY RESPECTS, BUT WE ARE SENSITIVE TO THE EXPENDITURE PRESSURES ON THE HORIZON AND WANT TO MAKE SURE WE'RE PREPARED, IF THERE IS A BIT OF AN ECONOMIC DOWNTURN, WHICH VERY WELL MAY OCCUR.

WE WANT TO BE PREPARED FOR THAT POSSIBILITY. TALK A LITTLE ABOUT DEVELOPMENT IN THE AREA OF THE HARBOR.

WE DODGED AN OVERDEVELOPMENT THERE A FEW YEARS AGO.

I GATHER FROM TALKING TO NILS ON CITY COUNCIL THAT WE'VE BEEN FAIRLY SUCCESSFUL IN LEASING NEW SPACES TO NEW TENANTS.

HOW IS THAT GOING AND WHAT DO YOU SEE ON THE HORIZON THERE? YEAH, YEAH. GREAT QUESTION. I THINK IT'S GOING VERY POSITIVELY.

WE HAVE A VERY CLEAR PLAN. OUR CONSTRUCT IS AND YOU'VE HEARD ME SAY THIS BEFORE, WE'RE FOCUSED ON THE PUBLIC AMENITIES PLAN REHABILITATING SEASIDE LAGOON.

SITING, DESIGNING, BUILDING THE BOAT LAUNCH THAT'S REQUIRED UNDER OUR LCP, AND THEN USING THE PUBLIC AMENITIES AS THE FRAMEWORK, THE CHESSBOARD, IF YOU WILL, FOR PRIVATE INFILL OF DEVELOPMENT ON A REASONABLE BASIS.

WE HAVE A COUPLE OF WHAT I WOULD CALL OPPORTUNITY SITES THAT WE'RE GOING TO BEGIN TO MARKET VERY QUICKLY.

THERE'S A VACANT PAD, WHAT WE CALL PAD TWO, WHICH IS THE SMALL PORTION OF THE HORSESHOE PIER THAT'S JUST OFF KIND OF NORTHWEST OF KINCAID'S.

THAT'S A SITE THAT ACTUALLY CAN BE LEASED AND OPERATED FOR A BIT OF A RESTAURANT USE.

THAT'S ONE THAT'S OUT ON THE MARKET. THE FUN FACTORY SPACE THAT'S BEEN VACANT FOR A WHILE, PENDING THE CAPITAL REPAIR WORK THAT'S BEING DESIGNED, IS ANOTHER SPACE THAT WE'RE READY NOW TO KIND OF WORK ON A PARALLEL TRACK THAT'S 30,000FT²

[00:15:07]

SO WE'RE OUT TO MARKET AND WILL BE OUT TO MARKET IN MORE EARNEST ON THAT SITE HERE IN THE NEXT FEW MONTHS.

THE CONCEPT OF A MARKET HALL, WHICH WOULD BE EFFECTIVELY KIND OF A REPOSITIONING OF THE COMMERCIAL USES THAT ARE ON THE I WOULD CALL IT THE SOUTHEAST SIDE OF MOLDY, KIND OF NORTH OF THE INTERNATIONAL BOARDWALK.

THERE'S AN OPPORTUNITY. THERE'S SOME THERE'S SOME SPACE THAT'S UNDERUTILIZED. BEHIND THOSE BUILDINGS ARE TEN CAPTAIN KIDS.

ET CETERA. THAT CAN BE REPACKAGED INTO, I THINK, A MODERN MARKET HALL TYPE STRUCTURE.

THAT'S ANOTHER OPPORTUNITY SITE FOR US. WE'RE IN CONSTANT NEGOTIATIONS WITH OUR OTHER MASTER LESSEES TO THE NORTH, LOOKING TO FIND WAYS TO INCENTIVIZE REVITALIZATION THERE.

WE JUST APPROVED AN OPTION AGREEMENT FOR THE PORT ROYAL MARINA FOR THEM TO INVEST ROUGHLY 2017 TO $20 MILLION TO REBUILD THEIR MARINA, RESET THEIR SPACING ALONG THE PROMENADE TO ALLOW FOR ITS EXPANSION, AND TO HOPEFULLY BRING ABOUT BETTER PEDESTRIAN AND CIRCULATION AND ATTRACTIVENESS THERE.

SO WE'RE WORKING VERY HARD THERE. SURF CLUB IS JUST ABOUT TO OPEN ITS DOORS.

THEY'LL BE OPEN LATER THIS MONTH. THEY'VE BEEN PAYING MINIMUM RENT DURING THE COURSE OF CONSTRUCTION.

ONCE THEY'RE OPEN, WE SUSPECT THAT THEIR GROSS PERCENTAGE RENT FIGURES WILL KICK IN.

WE'LL SEE TAX INCREMENT THERE. SO THERE'S SOME EXCITEMENT HAPPENING.

TO ANSWER YOUR BROADER QUESTION, LEASING HAS BEEN GOING WELL POST COVID SINCE KIND OF THE DOLDRUMS OF THE IMMEDIATE POST COVID REALITY.

I THINK WE'RE ON PIER PLAZA IN PARTICULAR. WE'RE JUST ABOUT 90% LEASED UP.

WE DO HAVE A VACANCY AT THE OLD MASON REESE BUILDING THERE THAT WE'RE TRYING TO ENCOURAGE THE TENANT, THE LESSEE WHO HAS CONTROL OF THAT SITE TO FIGURE OUT A WAY TO ACTIVATE.

SO WE'VE GOT STILL SOME VACANT SPACE IN THE BASEMENT AREA OF THE LANDING, THE ROBERT RESNICK LEASEHOLD THERE.

WE'RE WORKING WITH HIM TO TRY TO GET THAT LEASED UP.

SO WE'RE ACTIVE. ANY SPACE THAT YOU CAN THINK OR SEE THAT'S VACANT, WE HAVE ARE HAVING VERY ACTIVE CONVERSATIONS ON.

AND THEN AN EXPANSION OF THAT, THE SHOPPING CENTER ON HAWTHORNE THAT THE DISTRICT HAS BEEN HELD UP BECAUSE THEY COULDN'T GET FINANCING.

HAS ANYTHING CHANGED THERE? YEAH. SO WHAT'S HAPPENED THERE IS THEY HAD CONSTRUCTION FINANCING, BUT IT WAS AT A VERY LOFTY RATE, ROUGHLY 10%.

AND IT WASN'T A SUPER TENABLE NUMBER FOR THEM, I THINK, WITH WHAT THEY WERE FORECASTING ON A REVENUE BASIS.

SO THE L CATTERTON, WHO WAS THE OWNER OF THE SITE, THEIR POSITION IN THE PROPERTY HAS NOW SHIFTED.

AND THERE IS KENNEDY WILSON, WHO IS WHO WAS HOLDING THAT PAPER HAS NOW STEPPED INTO SORT OF CONTROLLING POSITION.

I THINK THEY'RE WORKING WITH PROSPECTIVE OWNER OPERATORS THAT MIGHT COME IN TO ULTIMATELY BUILD THE PROJECT.

SO THEY'RE IN A BIT OF A TRANSITION PHASE. BUT THEY'RE ACTIVELY WORKING WITH THOSE GROUPS.

WE'VE MET WITH A COUPLE OF THEM. AND, AND WE DO WE DO EXPECT THEM TO MOVE FORWARD WITH THE SECOND PHASE ENTITLEMENT.

THAT WAS HAS BEEN ENVISIONED FOR THE SOUTH SIDE OF THE CAMPUS THERE OFF OF KINGSDALE AND I AND I WOULDN'T BE SURPRISED IF THEY ULTIMATELY DECIDE TO REIMAGINE THE SPACE LONGER TERM IF AND WHEN THERE IS A NEW CONTROLLING INTEREST THERE.

YOU KNOW, WE'RE HOPING IT'LL BE AN OWNER, OPERATOR, BUY AND HOLD TYPE.

YOU KNOW, FINANCIER THAT WILL COME IN AND THAT IS WHO THEY'RE ENGAGED WITH CURRENTLY.

SO I THINK MORE TO COME ON THAT BUT THEY, EVERYBODY'S VERY INTERESTED IN SEEING THAT THAT SPACE REVITALIZED BECAUSE AS I'VE TOLD YOU ALL, YOU KNOW, THE SALES TAX THAT IS GROWING IN THE REGION IS WHAT'S OCCURRING ONLINE, RIGHT? THE ONLINE SALES REALITY. AND THAT ONLINE SALES REVENUE IS, IS DISTRIBUTED ON A, ON A, NOT ON A PER CAPITA BASIS, WHICH YOU MIGHT THINK WOULD BE BASED ON, YOU KNOW, POINT OF CLICK OF SALE.

IT'S BASED ON YOUR PARTICULAR ENTITY'S PERFORMANCE WITH EXISTING BRICK AND MORTAR.

SO AS OUR BRICK AND MORTAR PERFORMANCE DECLINES AGAINST OUR PEERS, RIGHT? AGAINST THE CITIES THAT HAVE BIG BOX RETAIL OR MORE ACTIVE.

YOU KNOW, MAYBE AN APPLE STORE OR SOME OF THE MORE CONTEMPORARY RETAIL ENVIRONMENTS.

WE BEGIN TO LOSE OUR MARKET SHARE OF THAT ONLINE SALES POOL.

AND THAT HURTS US BECAUSE OUR RESIDENTS BUY A LOT OF PROPERTY BY A LOT OF GOODS ONLINE, MORE THAN MOST OF OUR NEIGHBORS.

SO IT'S VERY IMPORTANT THAT WE HAVE STRONG, ROBUST BRICK AND MORTAR.

THE ONE THING THAT'S BEEN BULLYING US, THEY'RE KIND OF THE SAVING GRACE FOR US AND KEEPING US KIND OF IN A HOLD POSITION REGIONALLY IS THE SUCCESS OF OUR RESTAURANT COMMUNITY.

WE HAVE HAD SIGNIFICANT GROWTH, PARTICULARLY IN RIVIERA VILLAGE.

[00:20:02]

I WOULD CALL IT MARKET SHARE. YOU KNOW, THROUGH THE KIND OF DECLINE OF KOHL'S AND MACY'S, OVER TIME, WE HAVE AT LEAST SEEN SOME UPTICK IN OUR RESTAURANT PERFORMANCE VIS A VIS OUR PEERS.

SO IT'S SOMETHING WE GOT, YOU KNOW, SOUTH BAY SOCIAL.

I MEAN, THAT'S A LONG WAY OF SAYING SOUTH BAY SOCIAL DISTRICT SUCCESS IS REALLY CRITICAL TO OUR FUTURE IN THE SALES TAX ARENA.

YEAH. SO THAT'S KIND OF WHERE WE'RE AT AS WE GO INTO THE PROCESS.

ANY JUST GENERAL QUESTIONS OR THOUGHTS ON WHAT WE SHOULD BE THINKING ABOUT WHEN WE PREPARE? YES, SIR. ONE FURTHER QUESTION ON REVENUE. THE CANNABIS ISSUE.

WHERE DO WE STAND ON THAT? WELL, WE HAVE AN ADOPTED ORDINANCE.

THE COUNCIL SPENT A LOT OF TIME. IN FACT, WE HAD AN ADOPTED ORDINANCE SEVERAL YEARS AGO.

IT WAS A BIT CLUNKY. THE NEW ADOPTED AND UPDATED ORDINANCE ACTUALLY ALSO NOW EMBEDS THE REQUEST FOR PROPOSAL PROCESS AND THE OBJECTIVE CRITERION THAT WILL BE USED TO SELECT, ULTIMATELY MAKE A LICENSEE SELECTION THAT'S NOW PART AND PARCEL TO THE ORDINANCE ITSELF.

SO THAT WORK IS DONE. WHAT IS NEXT UP IS THE COUNCIL'S AUTHORIZATION FOR THAT RFP AND THE SELECTION ULTIMATELY OF TWO UP TO TWO LICENSEES IN THE COMMUNITY.

WE'LL BE BRINGING THAT ITEM BACK FOR COUNCIL CONSIDERATION IN THE NEXT COUPLE OF MONTHS.

LETTING THE NEW COUNCIL THAT JUST STARTED LAST NIGHT KIND OF GET SETTLED IN, AND THEN WE'LL TALK ABOUT THAT.

THE UPSIDE OF COURSE THERE POTENTIALLY IS DEPENDING ON THE ESTIMATES, ANYWHERE FROM, YOU KNOW, 4 TO $800,000 OF INCREASED SALES TAX. ARE THERE ANY RECOMMENDATIONS FOR THE UPCOMING BUDGET THAT HE SHOULD CONSIDER OR THE STRATEGIC PLAN FOR THE CITY? WELL, A COUPLE OF THINGS WE HAVE TALKED ABOUT FOR QUITE SOME TIME.

ONE IS THE HOMELESS PROJECT. HOW MUCH MONEY ARE WE GETTING FROM THE MORE THAN $1 BILLION THAT THE STATE IS COLLECTING AND THE COUNTY I KEEP READING IN THE PAPER.

THEY HAVE DECIDED TO GIVE UP SO MANY $100 MILLION TO THE CITIES.

SO THEY'RE DISPERSING ALL THESE FUNDS. WHAT'S OUR SHARE? HOW MUCH ARE WE GETTING? HOW MUCH ARE WE SPENDING? WE DON'T HAVE ANY INFORMATION YET. THAT'S ONE.

SECONDLY, THE CAPITAL IMPROVEMENT PROJECTS. LAST YEAR YOU HAD ONE SLIDE WHERE YOU SHOWED ABOUT A DOZEN PROJECTS AND WHAT WAS IN THE BUDGET. WHAT WE WOULD LIKE TO SEE IS GO A LITTLE BIT BEYOND THAT AND SEE WHAT WAS THE INITIAL AMOUNT THAT WAS APPROVED AND THEN WHAT HAS BEEN SPENT SO FAR. AND SO THAT WILL TELL US IF THERE IS A BUDGET OVERRUN.

NOW, I KNOW THAT IF THE COST EXCEEDS A CERTAIN AMOUNT, I THINK WHAT 25,000? THEN YOU HAVE TO GO TO THE CITY COUNCIL AND GET THERE.

YEAH, THERE'S A PERCENTAGE. AND THEN IF IT'S OVER $125,000, IT'S WHATEVER'S GREATER ON THE PROJECT.

THEN THAT EXTENDS BEYOND THE CITY ENGINEER'S CHANGE ORDER AUTHORITY.

AND THEN WE BRING THAT BACK TO COUNCIL FOR APPROVAL. SO THEY GENERALLY APPROVE MOST CHANGE ORDERS ASSOCIATED WITH THE PROJECT.

BUT ARE WE KEEPING TRACK OF HOW MUCH IT IS TOTALLY COSTING US? SURE, SURE. YEAH, WE NEED TO KNOW THAT. SO AT LEAST WE HAVE SOME IDEA WHAT WAS THE ORIGINAL ESTIMATE, BECAUSE THE ORIGINAL ESTIMATES ARE ALWAYS VERY, VERY OPTIMISTIC.

AND THAT HAPPENS IN EVERY BUSINESS, EVERY COMPANY FOR PROFIT OR NOT PROFIT.

BUT IN THE END WE DON'T WANT TO SEE ANOTHER HIGH SPEED RAIL PROJECT.

AND SOME OF THEM REALLY GO WAY OUT OF WHACK. BUT IF YOU DON'T KEEP TRACK OF WHAT HAS BEEN COSTING US, WE'LL NEVER KNOW. YEAH, NO GOOD POINTS. AND WE ABSOLUTELY KEEP TRACK.

EVERY EVERY PROJECT. WHEN WE WHAT WE DO IS WE APPROVE IT FOR FINAL RETENTION, PAYMENT RELEASE.

AND THERE'S A FULL ACCOUNTING OF ALL CHANGE ORDERS ASSOCIATED WITH THE PROJECT AND FINAL ACCOUNTING OF ACTUAL MONEY SPENT.

EVERY PROJECT HAS THAT. AND THE AGGREGATION OF THAT OCCURS, OF COURSE, AT YEAR END WITH OUR ACT FOR AND IT DOES AS PART OF OUR CAPITAL BUDGET EACH YEAR TOO. I WILL SAY THE GOOD NEWS ABOUT OUR CAPITAL PROGRAM IS THAT MOST OF THE MONEY THAT'S BEING SPENT THROUGH THAT PROGRAM IS COMING FROM EXTERNAL SOURCES.

WE HAVE VERY LITTLE GENERAL FUND DISCRETIONARY MONEY.

THAT'S PART OF OUR CAPITAL PROGRAM. MOST OF IT IS FOR FROM RESTRICTED FUNDS THAT ARE PROVIDED THROUGH EITHER REGIONAL SALES, REGIONAL SALES TAX DOLLARS, STATE TRANSPORTATION FUNDS, FEDERAL TRANSPORTATION FUNDS, OR STORMWATER CAPTURE.

OTHER TYPES OF SOURCES THAT HAVE RESTRICTIONS ON WHAT TYPE OF PROJECT THEY CAN BE SPENT ON.

AND WE'VE BEEN VERY, VERY. OUR CAPITAL PROJECTS TEAM, PUBLIC WORKS, HAS BEEN VERY SUCCESSFUL IN GATHERING AND OBTAINING GRANTS FROM THOSE

[00:25:04]

YOU KNOW, 90% OF THE WORK THAT WE BUILD AND COMPLETE IN THIS CITY IS COMING FROM AN EXTERNAL FUND.

EXTERNAL FUND. WHICH IS. WHICH IS HELPFUL. NOW, THAT'S NOT TO SAY THAT WE SHOULDN'T BE ACCOUNTING FOR IT JUST AS ACUTELY.

WE ABSOLUTELY HAVE THE SAME PROCESS FOR EACH OF THOSE PROJECTS, WHETHER IT'S A GENERAL FUND PROJECT OR A REGIONALLY FUNDED PROJECT.

BUT WE'VE WE DO A GOOD RETROSPECTIVE ACCOUNTING THAT'LL BE PART OF OUR CAPITAL BUDGET WHEN WE PRESENT IT.

I BELIEVE THE COMMISSION IS GOING TO HAVE A JOINT MEETING WITH THE PUBLIC WORKS AND SUSTAINABILITY COMMISSION. THEY WORK. THEY LOOK VERY CLOSELY AT OUR CAPITAL PROJECT PROGRAM. THAT'S KIND OF THEIR PRIMARY CHARGE.

AND I BELIEVE YOU HAVE A MEETING SCHEDULED AT THE END OF THIS MONTH, SO YOU'LL GET AN OPPORTUNITY TO KIND OF GO THROUGH THAT DETAIL. BUT OUR TEAM'S BEEN VERY, VERY SUCCESSFUL IN EXECUTING PROJECTS LAST TWO YEARS.

HIGHEST VOLUME OF PROJECTS CONSTRUCTED, MOST AMOUNT OF MONEY SPENT AND DEPLOYED IN THE COMMUNITY IN OUR HISTORY.

SO THAT'S POSITIVE. NOW, ARE WE UP AGAINST INFLATIONARY PRESSURES AND HAVE THERE.

ARE THERE OCCASIONALLY COST OVERRUNS, AS YOU REFERENCED? ABSOLUTELY.

IT'S A DIFFICULT IT'S BEEN A DIFFICULT BUILD ENVIRONMENT THE LAST FEW YEARS. THERE'S BEEN SO MUCH MONEY THAT'S FLOODED THE ZONE.

THE TRANSPORTATION ZONE IN PARTICULAR WITH, WITH, YOU KNOW, WITH ALL THE LIGHT RAIL WORK, THE ROAD WORK THAT'S HAPPENING AT THE STATE AND REGIONAL LEVEL ALL OF THE GAS TAX DOLLARS THAT HAVE BEEN DEPLOYED, THERE ARE JUST A LOT OF AGENCIES COMPETING FOR THE SAME CONTRACTORS, AND THE COST OF CONSTRUCTION HAS GONE UP IN THE LAST FEW MONTHS.

WE'RE FINALLY SEEING THOSE INITIAL COST ESTIMATES BEFORE WE GO OUT TO BID ACTUALLY BE THE BID AMOUNT OR EVEN MAYBE SEE BIDS COME IN UNDER ESTIMATE.

SO I THINK WE'VE MAYBE ECLIPSED THAT THAT INFLATIONARY CURVE A TOUCH.

NOW WE'LL SEE WHAT HAPPENS OVER THE NEXT COUPLE OF YEARS WITH THE ECONOMIC HEADWINDS AND TARIFFS AND EVERYTHING ELSE THAT'S OUT THERE IN THE CONVERSATION.

CAN'T PROMISE THAT THAT WILL CONTINUE. AND CERTAINLY, YOU KNOW, LABOR SCARCITY AND OTHER THINGS COULD BE A FACTOR TOO.

SO YOU KNOW, WE JUST GOT OVER THAT HUMP. I HOPE THERE'S NOT ANOTHER HUMP UP AHEAD.

BUT WE'RE DOING EVERYTHING WE CAN TO BE AS EFFICIENT AS POSSIBLE.

ALL THE MORE REASON WHY WE NEED TO BE EXTRA CAUTIOUS AND KEEP TRACK OF THOSE NUMBERS AND PRESENT THOSE NUMBERS WITHOUT INTERESTED IN ASKING WHY YOU SPEND MORE MONEY OR WHAT HAPPENED.

IF THE NUMBERS LOOK TO FAR APART, THEN WE CAN START DIGGING INTO IT.

YEAH. IS THERE A TREND THERE? YEAH, SURE. AND EVERY PROJECT, IT'S CALLED AN ACCEPT AS COMPLETE STAFF REPORT IS PREPARED FOR THAT.

AND THAT'S WHAT FINALIZES THAT EFFORT. SO EACH OF THEM WILL HAVE A BREAKDOWN OF THE FINAL CHANGE ORDERS, WHAT THE COST WAS AT THE BEGINNING AND THEN WHAT IT WAS AT THE END.

I HAVEN'T SEEN ANY MAJOR TRENDS. YOU KNOW, A COUPLE OF PROJECTS HERE AND THERE WHERE THERE HAVE BEEN SOME UNUSUAL CIRCUMSTANCES.

BUT FOR THE MOST PART, ONCE WE EXECUTE A CONTRACT OF LATE, THERE'S A SEWER REPAIR PROJECT THAT WITH DEWATERING IS WAS HAD SOME UNIQUE YEAH.

ISSUES THAT WE'RE WORKING THROUGH THE TRANSIT CENTER PROJECT, AS YOU MIGHT REMEMBER, YOU KNOW, A LOT OF ISSUES THERE THAT WE ULTIMATELY WORK THROUGH, WORK THROUGH THANKFULLY EXTERNALLY FUNDED OUR ROAD WORK OF LATE, WHETHER IT BE FLAT WORK OR RESURFACING OR SLURRING, HAS BEEN PRETTY ON BUDGET.

MOST OF THE CHANGE ORDERS WE'VE EXECUTED IN THAT AREA HAVE BEEN OPPORTUNITIES TO EXPAND OUR SCOPE OF WORK AND TAKE ADVANTAGE OF COMPETITIVE PRICING THAT'S ALREADY EXISTING.

SO SOMETIMES THE CHANGE ORDERS AREN'T BECAUSE WE HAVE COST OVERRUNS.

IT'S BECAUSE, OH, HEY, BY THE WAY, WE'VE GOT A GREAT CONTRACTOR WORKING IN THE CITY THAT'S MOBILIZED AND WE CAN GET $300,000 OF FLAT WORK DONE OVER HERE IN TOWN.

THAT WASN'T PART OF THEIR ORIGINAL SCOPE, BUT IT'S WE'RE GOING TO SEE IF COUNCIL'S COMFORTABLE WITH IT.

WE'RE GOING TO EXPAND THEIR SCOPE TO GET THIS WORK DONE TOO, BECAUSE IT WAS COMPETITIVELY BID.

AND WE'RE EXPERIENCING THE SAME UNIT PRICING.

SO WE THAT'S MORE OFTEN THAN NOT THE CHANGE ORDERS YOU SEE ARE OPPORTUNITY DECISIONS.

NOT BECAUSE WE'VE THE PROJECTS OVERWHELMED US.

JUST LET'S HAVE SOME VISIBILITY TO THESE VARIATIONS SO WE'RE NOT CHALLENGING, YOU KNOW, WHY YOU SPENT OR CRITICIZING THE OVER EXPENDITURES. WE JUST WANT TO SEE SOME.

YEAH. WHAT'S THE BACKUP FOR THAT. YEAH. YEAH. AND IN EACH OF THOSE EXCEPT I WOULDN'T EXPECT YOU TO GO THROUGH ALL OF THEM. BUT EACH OF THE EXCEPT IS COMPLETE STAFF REPORTS ARE KIND OF WALK THROUGH THE HISTORY AND THE WHY.

BUT YEAH, I THINK STAFF CAN GIVE YOU A LITTLE BIT MORE, YOU KNOW, OF A AGGREGATED VIEW OF THAT WHEN YOU MEET HERE AT THE END OF THE MONTH.

WE TEND TO SPEND EVERYTHING THAT WE ALL OF OUR REVENUE.

WHAT ARE WHAT ARE YOU LOOKING AT NOW AS FAR AS TOTAL REVENUE GROWTH IN 2025 COMPARED TO 20 OR FISCAL 25, I GUESS FISCAL 26 COMPARED TO FISCAL 25? YEAH.

YOU KNOW, IF I HAD TO BALLPARK IT RIGHT NOW, I MEAN, AND THIS IS I'LL START WITH GENERAL TAXES, PROBABLY IN THE $2 MILLION RANGE PLUS OR MINUS.

AND THEN I WOULD SAY IF YOU THINK ABOUT FEES, THERE'S PROBABLY ANOTHER HALF A MILLION TO MAYBE A MILLION OF NEW FEES THAT COULD COME

[00:30:04]

THE LIGATO HOTEL SITE SHOULD BE OPEN THIS FALL.

SHOULD START OPERATING NEXT FISCAL YEAR. THERE'S ALWAYS A LITTLE BIT OF A LAG WITH THE DELIVERY OF TOT WITH AN EARLY OPERATOR.

BUT I DO THINK WE'LL SEE TOT FROM THAT PROPERTY FROM THAT CAMPUS IN 25, 26, LATTER HALF OF IT.

BUT YEAH. TAX INCREMENT YEAR OVER YEAR, 2 TO 3 MILLION ON, ON THE, ON THE PRIMARY GENERAL TAX SIDE AGAIN WITH A BIG CAUTION. WE'RE GOING TO WAIT TILL WE RUN THE NUMBERS AND REALLY DRILL INTO IT.

BUT IF JUST SPIT BALLING RIGHT NOW, IT'S PROBABLY YEAR OVER YEAR GROWTH SOMEWHERE IN THAT RANGE, A LITTLE UNDER 3%. SO. IS THERE ANYTHING ELSE YOU WANT TO RECOMMEND, SUGGEST TO MIKE? WE TALKED ABOUT THE RESERVES, AND I THINK ONE MONTH'S RESERVE IN THE BUDGET, AND WE HAD A LONG DISCUSSION ON THAT SOME TIME AGO. WE COMPARED OUR SAW THAT REPORT. YEAH. YEAH.

I, YOU KNOW, OUR RESERVES ARE IN DIFFERENT SEVERAL BUCKETS.

YOU KNOW, WHEN YOU COBBLE THEM TOGETHER, WE'RE WELL RESERVED.

WE JUST DON'T. CAN YOU EXPLAIN WHAT YOU MEAN, THEY'RE IN DIFFERENT BUCKETS.

YEAH. SO MY UNDERSTANDING OF RESERVES IS ALL THE CITIES THAT I KNOW, THEY HAVE A PERCENTAGE THAT THEY ARE TRYING TO REACH.

AND IT USED TO BE 20%. AND NOW IT'S AFTER COVID.

AND THEY'RE ALL TRYING. THEY'RE AIMING FOR 25%.

I DON'T REMEMBER MAYBE THERE WAS A DISCUSSION WITH COUNCIL AND I KNOW THAT'S NOT THAT'S SOMETHING COUNCIL NEEDS TO APPROVE.

THAT'S NOT ON YOU. DO WE HOW DO WE GUIDE COUNCIL TOWARDS THAT? AND WHEN YOU SAY THEY'RE IN DIFFERENT BUCKETS, WHAT BUCKETS? YEAH. LET ME HELP YOU UNDERSTAND THAT. SO WE HAVE ONE WHAT I WOULD CALL PRIMARY.

WE CALL IT THE ECONOMIC CONTINGENCY OR ANOMALY RESERVE.

THAT'S THE ONE MONTH THAT'S WHAT YOU'RE REFERENCING.

THAT'S 8.33% OF OUR GENERAL FUND EXPENDITURE BUDGET.

THAT'S BY POLICY. WHAT THE COUNCIL INCORPORATES INTO THE BUDGET AS BASICALLY BY RIGHT, AS A AS A STARTING POINT.

AND THEY DID THAT, HOW MANY YEARS AGO WAS IT LAST TIME WE SAID? THAT'S PROBABLY THAT'S A 15 TO 20 YEAR OLD POLICY.

WE HAVEN'T REALLY TOUCHED IT. ABOUT TEN YEARS AGO WE TOOK WE ACTUALLY WELL, MAYBE IT WAS MORE LIKE EIGHT.

WE PROPOSED THAT WE WHEN WE HAD SOME OF THAT LEFTOVER ARPA MONEY AND OUR PENSION OBLIGATION BOND MONEY THE THEN CITY MANAGER, JOE HEFKIN, ACTUALLY RECOMMENDED TO COUNCIL THAT WE TAKE THAT MONEY, SEQUESTER IT, AND ACTUALLY ALMOST DOUBLE THAT AMOUNT.

COUNSEL AT THE TIME WAS MORE INTERESTED IN USING THAT MONEY TO GET SOME PROJECTS DONE THAT WERE OVERDUE.

SO WE DIDN'T WE DIDN'T SEQUESTER IT THAT WAY.

BUT WHAT WE HAVE BEEN BUILDING IN THIS COMMISSION IS AWARE OF THIS.

ASIDE FROM THAT ECONOMIC CONTINGENCY RESERVE, WHAT WE'VE BEEN BUILDING SLOWLY OVER THE LAST, I'D SAY, 6 TO 8 YEARS IS WHAT WE'RE CALLING. WE'VE CALLED IT THE PENSION RESERVE ACCOUNT, WHICH HAS NOW BEEN REDEFINED AS PENSION SALARY BENEFIT, YOU KNOW, KIND OF RESERVE ACCOUNT. BUT WE'VE WE'RE UP TO $8 MILLION IN THAT ACCOUNT.

IT'S ALMOST DOUBLE THE ECONOMIC CONTINGENCY AMOUNT.

SO, YOU KNOW, ROUGH ORDER OF MAGNITUDE, YOU'VE GOT 16% OF OUR GENERAL FUND BUDGET RESERVED CURRENTLY IN JUST THOSE TWO ACCOUNTS.

WHAT A LOT OF FUNDS DON'T DO AS WELL AS WE DO IS SET MONEY ASIDE FOR FUTURE EQUIPMENT AND REPLACEMENT, WHETHER IT BE VEHICLES, WHETHER IT BE IT, HE, WHETHER IT BE OTHER NEEDS IN THE COMMUNITY.

SO WE HAVE A MORE ROBUST RESERVE ACCOUNT FOR ACTIVE EQUIPMENT NEEDS THAN MOST AGENCIES.

AND THAT WHEN YOU ADD THAT TO THE BUCKET WHICH A LOT OF FOLKS DON'T HAVE, YOU START TO SEE THAT NUMBER GET CLOSER TO THE 20%, 22% MARK OF GENERAL FUNDS. SO, YOU KNOW, WHEN WE AGGREGATE THE VARIOUS RESERVE ACCOUNTS.

AND AGAIN, I'M NOT SUGGESTING THAT I WOULD LIKE TO SEE US GROW THAT AMOUNT AS BEST WE CAN.

BUT THERE ARE IT ISN'T EASY TO DO THAT. RIGHT.

FOR US TO JUST SAY, HEY, WE'RE GOING TO TAKE THE 8.33% NUMBER AND TURN IT INTO 20.

THAT MEANS NEXT YEAR I GOT TO FIND I GOT TO FIND $12 MILLION IN THE BUDGET THIS YEAR THAT I'M SHEDDING OUT OF OUR EXPENDITURE LINE AND THEN REALLOCATING TO RESERVE.

SO WE TRY TO DO IT AS JUDICIOUSLY AND AS STEADILY AS WE CAN.

I FEEL GOOD ABOUT OUR RESERVE RESERVE POSITION BECAUSE WE HAVE A BALANCED REVENUE STREAM.

SOME COMMUNITIES WHO ARE INDEXED TO ANY ONE PARTICULAR REVENUE CAN HAVE MORE FLUCTUATIONS.

OUR REVENUES HAVE BEEN FAIRLY STEADY. THAT'S NOT TO SAY THAT WE COULDN'T SEE A DISASTER REALLY AFFECT US.

[00:35:06]

WE'VE NEVER HAD NEED. SO SOMETIMES, YOU KNOW, RESERVE'S NICE TO HAVE.

IT FEELS GOOD. BUT THEN ON THE OTHER HAND, IT'S.

WELL. OKAY. WHAT'S IT THERE? WHAT ARE WE PROTECTING AGAINST? WHAT'S THE REALITY OF RISK? SO I REALLY LIKE THE FACT THAT WE, WE ARE DILIGENT ABOUT RESERVING FOR THE EQUIPMENT NEEDS THAT WE HAVE GOING FORWARD, MAKING SURE THAT WE'RE PREPARED TO STAY CONTEMPORARY IN ALL OF THOSE AREAS.

I'M NOT SAYING OUR RESERVE PROGRAM IS PERFECT. I MEAN, WE COULD BE MORE AGGRESSIVE IN REPLACING CERTAIN VEHICLE TYPES.

WE COULD DO THINGS, YOU KNOW, MORE FREQUENTLY IN THAT RESPECT.

BUT I LIKE THAT WE CREATE THE BUCKETS THAT WE CREATE BECAUSE I THINK IT'S IT SHOWS THAT WE'RE FUNDING FOR THE RIGHT THINGS OF IMMEDIATE NEED, NOT JUST SQUIRRELING MONEY AWAY IN AN ACCOUNT TO MAKE US ALL FEEL GOOD AT NIGHT. SO WE HAVE RESERVES FOR THE EQUIPMENT.

AND IS THAT IN A IN A BUDGET BOOK THAT IS THERE THAT'S A LINE ITEM.

SO MEL'S BEEN THERE'S BEEN REALLY ACTIVE IN REVIEWING THAT OVER THE YEARS.

SO AND THEN CAN I, CAN I JUST I JUST WANT TO UNDERSTAND.

SO THE PENSION RESERVE. SO THAT'S AGAIN IT'S A SEPARATE LINE IN A BUDGET.

SEPARATE IT'S A SEPARATE FUND. IT'S, IT'S CURRENTLY A SEPARATE SITS ABOUT AN $8 MILLION.

IT'S A SET ASIDE ACCOUNT STILL PART OF THE GENERAL FUND.

IT'S A IT'S GENERAL IT'S GENERAL DISCRETIONARY DOLLARS.

WE HAVE FULL CONTROL OVER HOW IT'S SPENT. WE'VE TITLED IT THE PENSION RESERVE ACCOUNT.

WE COULD JUST AS EASILY HAVE IT BE PART OF THE ECONOMIC CONTINGENCY RESERVE.

THE REASON WE DIDN'T IS BECAUSE WE EXPECT, AND WE MAY EVEN USE A LITTLE BIT OF IT THIS YEAR WHEN WE HAVE NEED.

WE TEND TO DRAW IT DOWN AND THEN REPOPULATE IT.

AND THAT'S BEEN OUR CYCLE. IT'S BEEN SOMETIMES WE RESERVE, WE SPEND IT, IT DIPS, WE PUT IT BACK, IT GROWS. SO WE'VE IT'S BEEN A LITTLE BIT MORE OF A REVOLVING DOOR THAN, SAY, THE ECONOMIC CONTINGENCY AMOUNT, WHICH WE'VE NEVER TOUCHED, AS I SAID IN MY 20 YEARS OF HISTORY HERE.

SO THAT ONE'S A LITTLE MORE FUNGIBLE THAN THE ECONOMIC.

SO YOU SAID IT'S A PENSION FUND. IT'S NOT A PENSION.

I WOULD I HESITATE TO GET TOO HUNG UP ON THE TITLE.

IT'S REALLY JUST AN IT'S JUST A GENERAL FUND SET ASIDE IS REALLY WHAT IT IS.

WE CALLED IT THAT EARLY ON BECAUSE WE KNEW WE HAD PENSION COSTS THAT WE WOULD NEED TO BE ABLE TO, TO PAY OUR $4.2 MILLION UNFUNDED ACCRUED LIABILITY PAYMENT THAT WE HAVE COMING THIS YEAR IS A GREAT EXAMPLE OF THAT.

SO WE TITLED IT THAT. BUT IT'S A FULLY DISCRETIONARY GENERAL FUND RESERVE BUCKET.

SO ARE YOU GOING TO TAKE THE $4 MILLION OF UNFUNDED LIABILITY THAT WE OWE THIS YEAR THAT WE DIDN'T EXPECT, BECAUSE WE THOUGHT WE PAID ALL OF THAT OFF AND JUST DEPLETE HALF OF THIS PENSION FUND, AND THEREFORE IT DOESN'T AFFECT THE REST OF OUR BUDGET.

HOPEFULLY NOT. MY, MY HOPE IS WE WILL BE ABLE TO COVER MOST OF THAT COST THROUGH UNALLOCATED GENERAL FUND RESERVE OUTSIDE OF EVEN THE ECONOMIC CONTINGENCY RESERVE, BECAUSE WE WERE CAREFUL AT MIDYEAR TO RECOMMEND THAT THE COUNCIL TOUCH NONE OF WHAT WE ANTICIPATE TO BE A ROUGHLY $2 MILLION YEAR END FUND BALANCE.

SO MY, IF ALL GOES WELL, THAT YEAR END FUND BALANCE ESTIMATE.

AND I'M SORRY, I DIDN'T MEAN TO CUT YOU OFF, COMMISSIONER.

WOULD, WILL GROW FROM 2 TO 3, PERHAPS MAYBE TO 3.5 MILLION.

I'M HOPING THAT THAT UNALLOCATED BECAUSE WE WERE WE WERE CAREFUL AT MIDYEAR.

WE FOCUSED ON REVENUE INCREMENT, BUT WE DIDN'T TOUCH WHAT TYPICALLY HAPPENS YEAR OVER YEAR WHERE WE EXPERIENCE SALARY SAVINGS AT YEAR END AND THAT USUALLY ACCRUES TO THAT UNALLOCATED FUND BALANCE.

I'M HOPING THAT THE UNALLOCATED FUND BALANCE NUMBER THAT WE'RE STARTING THE FISCAL YEAR WITH IN OUR POLE POSITION, WILL COVER MOST OF THE $4.2 MILLION FOR NEXT YEAR.

BUT OF COURSE, WE ARE SLOWLY BRINGING OUR STRUCTURAL BUDGET TO ABSORB A PORTION OF THAT PRINCIPAL INTEREST PAYMENT.

NOW, THAT IS UNFORTUNATELY LIKELY TO BE PART OF OUR BUDGET FOR THE NEXT 20 YEARS.

NOW, WILL IT ALWAYS BE 4.2 MILLION? YOU KNOW, WE TECHNICALLY SPEAKING, PEARSE HAD A GOOD FISCAL YEAR 23-24 PERFORMANCE. WE SHOULD SEE A LITTLE BIT OF AN IMPROVEMENT TO THE OVERALL UAL THIS AUGUST WHEN THEY GIVE US OUR NEXT PROJECTION.

I'LL BELIEVE IT WHEN I SEE IT. BUT WE'RE SLOWLY MATRICULATING THAT UAL BACK INTO OUR CORE EXPENDITURE ACCOUNT.

SO OUR PROBLEM WITH THE UAL IS THAT WHATEVER HAPPENS AT CALPERS IS TWO YEARS IN ARREARS.

SO IF THE ECONOMY GOES IN THE DITCH THIS YEAR, WE'RE GOING TO FEEL REALLY GOOD THIS YEAR AND NEXT YEAR AND THE FOLLOWING YEAR WE'RE GOING TO GET WHIPSAWED. YEAH. AND I'M GOING TO SUBMIT TO YOU THAT THOSE REPLACEMENT FUNDS FOR THINGS LIKE VEHICLES SHOULD NOT BE CONSIDERED PART OF THE RESERVE BECAUSE WE HAVE TO SPEND THAT MONEY, WHETHER WE HAVE A FLOOD OR AN EARTHQUAKE OR NOT.

[00:40:06]

AND IT'S NOT REALLY A RESERVE FUND. IT'S BASICALLY A PLANNED SINKING FUND IS REALLY WHAT IT IS.

AND SO YOU CAN'T USE IT FOR THOSE EMERGENCIES.

I'D LIKE TO ALSO ASK THAT $8.3 MILLION THAT WE HAVE IN THAT EMERGENCY RESERVE FUND.

WHAT WOULD THAT PAY FOR IN AN EMERGENCY? YEAH, I MEAN, THE REASON.

IS THAT GOING TO REPLACE, LIKE, ALL THE ROOFS ON ALL THE CITY BUILDINGS, OR ARE WE GOING TO RUN OUT OF MONEY BEFORE WE GET THE WINDOWS REPLACED OR? SEE WHAT THAT'S REALLY TECHNICALLY INDEXED TO DO IS COVER PAYROLL FOR A MONTH IN THE DISASTER, WHERE YOU DON'T HAVE REVENUES ACCRUING TO THE CITY.

IT'S NOT MEANT TO PAY FOR CAPITAL ASSETS. WE ARE INSURED TO COVER CAPITAL REPAIR BEYOND OUR $500,000 SIR.

SO THERE ARE DIFFERENT TRIGGERS THAT WOULD COVER BUILDING DAMAGE AND EMERGENCY FLOODING.

YOU KNOW, OF COURSE, FEMA AND STATE MONEY IS ALSO A SOURCE, BUT THERE'S ALSO LOSS OF TAX REVENUE AND ALL THOSE OTHER THINGS THAT CAN GO ON FOR FOUR YEARS, POTENTIALLY FOR YEARS. SO THAT'S WHY YOU AND THERE'S, YOU KNOW, YOU COULD WE COULD ALL COOK UP SCENARIOS WHERE THE CITY DOESN'T RECEIVE A PAYCHECK OR A REVENUE FROM THE STATE. I MEAN, WE COULD HAVE AN APOCALYPSE AND THERE IS NO MORE MONEY FLOWING TO THE TO THE COMMUNITY.

SO IT'S THE RESERVE IS AND THAT'S WHY IT'S KIND OF INTERESTING.

WE HAVE THIS 8.33% SET ASIDE. IT'S INDEXED TO REFLECT ONE MONTH'S EXPENDITURES.

THAT'S REALLY WHAT THE POLICY STATEMENT SAYS.

AND THE THOUGHT THERE IS, OH, HEY, IF THERE WERE SOME MASSIVE DISASTER, MAYBE WE HAVE A YEARS, YOU KNOW, A MONTHS LAG OF REVENUE ACCRUAL BECAUSE THE COUNTY IS OFFLINE, THE STATE IS OFFLINE, ETC. BUT WE WOULD HAVE AN ACCOUNT WE COULD DRAW FROM.

THAT'S WHAT IT'S MEANT TO DO. HOW REALISTIC THAT IS.

I MEAN, YOU COULD, YOU COULD, YOU COULD IMAGINE A NUMBER OF SCENARIOS WHERE THAT'S TOTALLY INSUFFICIENT.

YET WE HAVE 50 YEARS OF TRACK RECORD THAT SUGGESTS THAT THAT'S MORE THAN SUFFICIENT.

THAT'S WHAT THE FOLKS IN THE PALISADES SAID. WE GOT 50 YEARS OF TRACK RECORD.

ALL WE GOT TO DO IS BUILD BIG HOUSES. YEAH. TURNS OUT IN THREE WEEKS IT WAS ALL OVER.

YEAH. AND THAT'S ONE OF THOSE. AND THEY'RE NOT BACK ONLINE.

YEAH. AND I THINK FOR US, THAT SCENARIO WOULD BE SOMETHING LIKE A CATASTROPHIC EARTHQUAKE, RIGHT. I MEAN, WE DON'T HAVE A FIRE RISK LIKE THAT. PALISADES. OR A TSUNAMI OR A TSUNAMI.

TSUNAMI? YEAH. YEAH. WELL, I MEAN, WE CALL THEM TSUNAMIS.

THEY'RE ABOUT THAT BIG. YEAH, EXACTLY, EXACTLY. OUR DOCS USUALLY GET TORN UP.

BUT. YEAH, NO, I JUST WE SPENT A LOT OF TIME TALKING ABOUT THIS IN THE COMMISSION, AND I KNOW YOU.

I'M PRETTY SURE YOU PROBABLY WATCHED OUR COMMISSION DELIBERATIONS AND OUR AGGRAVATION WAS THAT THAT 8.3 MILLION NUMBER WAS SETTLED ON 15 YEARS AGO, AND WE DIDN'T HAVE ANY REASON TO BELIEVE THAT THERE WAS ANY INTELLIGENCE PLACED ON THAT NUMBER ANYTIME IN THE NEAR PAST TO SAY THAT'S A REASONABLE NUMBER TO USE. YEAH. AND THAT WAS OUR REAL QUESTION. AND THE SECOND PHASE OF THAT WAS, NO, WE WOULD NOT EXPECT TO GO FROM 8% TO 20 OR 25% IN A YEAR.

I THINK WE SUGGESTED LIKE 1% A YEAR OR HALF A PERCENT A YEAR.

AND WHETHER THE NUMBER IS 8.3 OR 10 OR 18, I MEAN, AT 1% A YEAR, FOR FIVE YEARS, YOU'RE AT 13% OR SO.

AND YOU CAN MAKE A NEW DECISION. AND YOU COULD ARGUE IN A WEIRD WAY, IN A ROUNDABOUT WAY, ALTHOUGH NOT THAT POINTEDLY AS YOU'VE STATED.

AND THAT WAS KIND OF OUR, OUR, OUR SUGGESTION A FEW YEARS BACK.

WE'VE DONE IT THROUGH SLOW MATRICULATION OF THE CALPERS, THE PENSION RESERVE ACCOUNT THAT I KEEP CITING.

WE'RE AT EFFECTIVELY 16.5 MILLION BETWEEN THOSE TWO FUNDS, RIGHT.

AND BY ALL ACCOUNTS, THOSE TWO FUNDS AGGREGATED WOULD MEET ALL DEFINITIONS OF DISCRETIONARY RESERVE.

SO WE'RE AT THE I MEAN IF IT MAKES PEOPLE NOW THE ONE THING I DON'T WANT TO SAY IS WE DON'T HAVE THAT QUITE HARD STOP ON THE TWO OF THOSE AGGREGATED THE WAY WE DO ON THE 833, AS I POINTED OUT, THAT'S A LITTLE BIT MORE FUNGIBLE, BUT WE HAVE BUILT THAT NUMBER TO 8 MILLION OVER THE LAST FIVE YEARS.

IT WAS IT WAS ZERO. YOU KNOW, WE STARTED THIS FUND MAYBE TEN YEARS AGO.

IT KIND OF WENT THROUGH SOME EBBS AND FLOWS DURING COVID, BUT WE'VE SLOWLY BUILT THAT UP AND WE'VE BEEN FORTUNATE NOT TO TOUCH IT FOR THE LAST SEVERAL YEARS. SO IT'S GROWN. SO WE'VE KIND OF DONE IT IN A SOMEWHAT OF A ROUNDABOUT WAY.

BUT THAT ACCOUNT IS STILL VIEWED BY ME AND THE COUNCIL AS WE TALK.

BUDGET IS A LITTLE BIT MORE FUNGIBLE THAN THE ECONOMIC ANOMALY.

SO THAT MONEY ALSO HELPS THAT WHEN CITIES GET IN TROUBLE, THEY DON'T HAVE TO LAY OFF PEOPLE.

THEY DON'T HAVE TO GIVE PAY CUTS TO THEIR STAFF.

AND I KNOW IN REDONDO A FEW YEARS AGO, I DON'T KNOW EXACTLY HOW MANY, BUT THEY DID RECEIVE PAY CUTS.

2009-10. AND THOSE ARE THE FUNDS THAT THE CITY USUALLY RELIES ON SO THAT THEY DON'T HAVE TO PUNISH THEIR STAFF.

[00:45:03]

THEN WHY DID WE HAVE TO GIVE STAFF PAY CUTS? WHY DID WE HAVE TO.

WE DIDN'T HAVE IT. THEN. YOU KNOW, WE DIDN'T HAVE THAT FUND THEN WE CREATED THAT FUND, THAT MONEY.

AND THEN WE CALL IT A RESERVE, WHICH IS BORROWED MONEY.

WELL, NO, WE DIDN'T BORROW THIS MONEY THAT'S IN THIS FUND. SO TO BACK UP, JUST TO GO BACK TO WHAT YOU MENTIONED ABOUT THE PAY CUTS BACK THEN THAT WAS FOLLOWING THE GREAT RECESSION. WE DIDN'T HAVE WE HAD THE ECONOMIC ANOMALY FUND AT THE TIME THAT CITY MANAGER STAFF COUNCIL CHOSE NOT TO TOUCH THAT FUND.

DIDN'T DIP INTO IT. THERE WAS NO PENSION RESERVE SALARY FUND ON TOP OF THAT THAT WE'VE SINCE CREATED, THAT'S $88 MILLION. THAT WAS THAT MONEY DIDN'T EXIST.

SO WHAT WE WERE FORCED TO DO TO BALANCE THE BUDGET WAS TO LOOK THROUGH FOR COST CUTTING MEASURES.

AND IN ADDITION TO SHRINKING SERVICES, ONE OF THE THINGS THAT WAS NEGOTIATED, ALTHOUGH VERY PAINFULLY AND SOMETHING I WOULD NEVER RECOMMEND WE WOULD DO AGAIN, IS WE SOUGHT REDUCTIONS IN PAY FROM OUR ASSOCIATIONS THAT WERE INTENDED TO BE SHORT TERM, BUT TOOK MANY YEARS TO RESTORE. AND THAT'S HOW WE BALANCE THE BUDGET DURING THE GREAT RECESSION, BECAUSE WE DIDN'T HAVE ENOUGH RESERVES, AN EXTRA 8 MILLION LIKE WE HAVE NOW.

AND THAT'S IN PART WHY WHEN WE TALK ABOUT THIS BEING A BIT MORE FUNGIBLE, WHEN WE HAVE PAIN AND PRESSURE IN THE BUDGET THAT SAYS, YOU KNOW, LET'S SAY THE NUMBERS SUGGEST THAT WE HAVE 2 MILLION MORE DOLLARS OR 3 MILLION MORE DOLLARS OF EXPENSES THAN WE HAVE INCOME STREAM.

RIGHT? LET'S SAY OUR STRUCTURAL EXPENSES OR OUR TOTAL EXPENSES, INCLUDING THE UAL, ARE AT 115 MILLION, AND WE'VE GOT 112 MILLION OF BUDGETED REVENUE.

RATHER THAN SAY, OKAY, LET'S GET OUT THERE, LET'S SLASH AND BURN, LET'S FIND $3 MILLION OF CUTS.

WE CAN USE THAT A PORTION OF THAT $8 MILLION.

SMOOTH THAT OUT AND THINK ABOUT IT ON A BROADER 2 OR 3 YEAR HORIZON AND SOFTEN THAT PAIN.

AND THAT'S WHY WE TREAT IT MORE AS A REVOLVING DOOR.

AND THAT'S WHY I'M SO HAPPY THAT WE HAVE IT TO GIVE US THAT FLEXIBILITY.

WHERE DID IT COME? TELL ME AGAIN, WHERE DID THAT 8 MILLION COME? SAVINGS. SAVINGS FROM WHERE? A YEAR OVER YEAR SAVINGS THAT WE SLOWLY SEQUESTERED AWAY.

IT'S GROWN. SO IT DIDN'T COME FROM WHEN THEY THE PENSION FROM WHEN YOU GUYS BACK IN THE DAY WHEN THE PENSION OBLIGATION BONDS. NO, WE DIDN'T JUST TAKE THE MONEY FROM THERE NOW, DID THE EXTRA FUNDS THAT WERE CREATED THROUGH THAT ISSUANCE AND ARPA CREATE MORE FLEXIBILITY IN ONE TIME, FUNDS THAT EVENTUALLY ACCRUE TO YOUR SAVINGS? YEAH. THAT HELPED. THERE'S NO QUESTION. WE HAD WE HAD A LOT OF CASH WITH THE ARPA PAYMENTS AND WITH THE AND REALLY THE REASON WE HAD EXTRA CASH DURING THE PENSION OBLIGATION BOND ISSUANCE IS BECAUSE THE INITIAL ESTIMATE FROM PERS ON WHAT WE WERE GOING TO OWE TO COVER OUR FULL UAL AT THE TIME WAS HIGHER THAN WHAT IT WAS WHEN WE ACTUALLY ISSUED THE BOND AND WROTE THE CHECK DUE TO THAT LAG THAT WAS MENTIONED.

AND WHEN WE ACTUALLY WROTE THE CHECK. SO WE HAD SO WE HAD ABOUT WE HAD SOME EXTRA RESIDUAL MONEY.

NOW AT THE TIME CITY MANAGER WAS LIKE, HEY, LET'S JUST TAKE THAT DROP IT IN THE ECONOMIC ANOMALY.

THAT'S WHERE IT CAME FROM. IT DIDN'T COME FROM.

BUT REMEMBER, THE COUNCIL DIDN'T USE IT THEN.

THE COUNCIL THEN SPENT THAT MONEY ON PROJECTS.

SO THEN OVER SEVERAL YEARS, WE'VE BEEN DILIGENT TO CREATE SAVINGS AND USE THE SAVINGS AND SEQUESTER THOSE SAVINGS TO CREATE THE FUND.

SO I WANT TO GO BACK TO 2008, BECAUSE I THINK I HEARD YOU SAY SOMETHING, AND I HOPE I HEARD IT WRONG.

WE HAD A CONTINGENCY FUND AT THE TIME. YES, BUT IT WASN'T IDENTIFIED AS BEING FOR PENSIONS AND SALARIES.

SO WE DIDN'T SPEND IT. AND INSTEAD WE CUT SALARIES AND LAID PEOPLE OFF.

WE DID NOT DIP INTO OUR ECONOMIC CONTINGENCY FUND DURING THE GREAT RECESSION.

THAT'S WHAT I'M SAYING. WE HAVE THAT. YOU WOULD THINK IF THERE WOULD EVER BE A CIRCUMSTANCE WHERE THE, AND THAT SHOWS YOU THAT THE DILIGENCE WAS, OH, WE DON'T WANT TO TOUCH THAT.

IT'S TOO IMPORTANT TO HAVE, EVEN THOUGH AT THE TIME IT WOULD HAVE PROVIDED QUITE A BIT OF RELIEF.

WE DIDN'T. SO WE DIDN'T EVEN SPEND THE 8.33% WHEN WE HAD THE GREAT RECESSION.

SO THAT'S WHY WHEN I THINK ABOUT RESERVES, I THINK TO MYSELF, OKAY, WE SET THEM THERE.

HOW SACRED ARE THEY? WHAT ARE THE CIRCUMSTANCES THAT WE'RE COMFORTABLE ACCESSING THOSE ACCOUNTS? BECAUSE IF WE DON'T FEEL COMFORTABLE ACCESSING THEM, WHAT'S THE POINT TO HAVE THEM? RIGHT. SO RESERVES IS A IT'S A MUCH BIGGER QUESTION.

IT'S VERY SIMPLE TO SAY, OH GOD, IT'D BE GREAT TO HAVE MORE MONEY IN THE BANK. YOU KNOW, IT'S ALWAYS COMFORTABLE. BUT BY WHAT? UNDER WHAT CONDITIONS ARE WE COMFORTABLE DRAWING FROM THAT MONEY? BECAUSE IF WE'RE ALWAYS GOING TO HAVE IT THERE, THAT'S ALL WE'RE DOING. WE'RE JUST PUTTING IT IN THE BANK. WELL, MIKE, IN THE PRIVATE SECTOR, I'VE SEEN I'VE WORKED FOR COMPANIES WHERE THEY HAVE WHAT THEY CALL A STEP BUDGET.

[00:50:04]

WHAT IF THE REVENUES FALL SHORT BY 10% OR BY 20%? SO YOU HAVE A STRATEGY. YOU HAVE A PLAN. AND SO THAT WAY, YOU KNOW, IT'S LIKE A LIKE AN EARTHQUAKE OR FIRES OR FLOODING. IT SUDDENLY HITS US. WE DON'T HAVE TO START SCRATCHING OUR HEAD AND SAY, OH MY GOD, NOW WHAT DO WE DO? WE HAVE A PLAN IN PLACE. THE ECONOMIC CONTINGENCIES FOR REALLY I MEAN, THAT'S THE CIRCUMSTANCE, I THINK, WHEN I THINK OF WHAT WOULD WHAT WOULD COMPEL ME TO RECOMMEND TO COUNCIL SPENDING IT, THAT'S THE TYPE OF SCENARIO I SEE IN WE CAN WE HAVE SOMETHING SIMILAR TO THAT? NOT IN FINE DETAIL, BUT SOME IDEA, SOME BROAD IDEAS FOR WHAT HAPPENS IF THE REVENUES FALL SHORT BY 10% OR 20%.

YEAH. AND SEE AND IN THAT SCENARIO RIGHT THOSE HAPPEN, THOSE DON'T HAPPEN QUITE AS THERE'S TWO SCENARIOS RIGHT.

THEY COULD HAPPEN SLOWLY OVER THE COURSE OF THE YEAR DUE TO ECONOMIC HEADWINDS.

WHICH WHEN YOU THINK ABOUT THE GREAT RECESSION AND KIND OF THE YEARS WHERE IT TOOK A LITTLE WHILE TO KIND OF REACH ITS DEPTHS, IT WAS LIKE, OKAY, WE WERE SEEING 5% PERCENT REDUCTION, 7% REDUCTION.

SO WE WERE WE WERE ASSIMILATING THE BUDGET AND ADAPTING THE BUDGET ON KIND OF A CONTINUAL BASIS.

I THINK OF THE ECONOMIC CONTINGENCY RESERVE IS SUDDEN CATASTROPHE.

THE PALOS VERDES, YOU KNOW, THE PALISADES FIRE, THE CITY OF MALIBU, RIGHT.

CITY OF MALIBU IS GOING TO HAVE I DON'T KNOW WHAT THEIR REVENUE COLLECTION IS GOING TO LOOK LIKE OVER THE NEXT TWO YEARS, RIGHT. THAT'S THAT'S THE SCENARIO WHERE THEN YOU I THINK YOU WOULD FEEL COMFORTABLE IS NOT THE RIGHT WORD, WHERE YOU WOULD FEEL COMPELLED TO SAY, OKAY, CITY COUNCIL, WE NEED TO DRAW INTO THIS ACCOUNT TO COVER OUR COSTS UNTIL WE HAVE A BETTER UNDERSTANDING OF WHERE MONEY IS GOING TO COME FROM.

YOU MIGHT HAVE TO DO BOTH. YOU MIGHT HAVE TO DIP IN. YOU HAVE TO DO BOTH. YOU MIGHT HAVE TO CUT AND DRAW AND THAT, YOU KNOW, ARGUABLY THERE WAS A HARD LOOK AT DOING SOME OF THAT.

WHAT WE DID DO IN 08, WHICH WAS DONE IN MUCH TO THE CHAGRIN OF THOSE OF US WHO WERE MANAGING THE FLEET AT THE TIME.

BUT WE DID CUT INTO WE WITHDREW MONEY FROM OUR EQUIPMENT RESERVE ACCOUNTS TO HELP COVER COSTS.

WE EVENTUALLY REPOPULATED IT. SO THAT'S WHY I SAY WE HAVE MULTIPLE BUCKETS.

WE HAVE FULL DISCRETION OVER ALL OF THOSE BUCKETS.

NOW, I FULLY AGREE. THE REASON WE HAVE THAT SINKING FUND THERE FOR VEHICLES IN IT AND THE LIKE, AND YOU'RE GOING TO GET A PRESENTATION ON THAT TONIGHT IS FOR THAT'S PLANNED USE.

THAT'S PLANNED SPENDING. THAT'S NOT A RESERVE FOR A RAINY DAY.

THAT'S PLANNED. THAT'S MAKING SURE YOU'RE DOING A GOOD JOB AMORTIZING YOUR EXPENSES AND ENSURING THAT YOU CAN REPLACE THAT ASSET WHEN IT'S DUE FOR REPLACEMENT.

SO WE FEEL STRONGLY ABOUT THAT. BUT RESERVE, THAT'S WHAT I'M CALLING IT NOW.

IT'S OKAY. THAT'S THE EASY TERM. IS THERE ANYTHING THAT YOU ARE NOT ALLOWED TO SPEND THAT ON OR.

IT IS FULL, FULL DISCRETION. FULL DISCRETION.

AND I ALSO WANT TO MENTION, I KNOW AT THE END OF THE DAY, IT'S NOT YOU WHO MAKES THAT CALL.

IT'S THE COUNCIL WHO MAKES THAT CALL. SO IT'S NOT YOUR FAULT.

AND I WOULD BE THE ONE RECOMMENDING WHEN AND WHEN NOT TO TOUCH THAT.

AND OF LATE, I'VE BEEN FORTUNATE. WE'VE BEEN FORTUNATE AS A COMMUNITY TO HAVE ENOUGH REVENUE AND SAVINGS WHERE WE'VE BEEN IN SAVING MODE, KIND OF SQUIRREL AWAY MODE, NOT SPEND MODE. BUT I DON'T I DON'T WANT TO PROMISE THAT THAT'S GOING TO BE THE CASE OVER THE NEXT TWO YEARS.

I IT WOULD NOT SHOCK ME IF I HAVE TO RECOMMEND THIS YEAR THAT WE DIP INTO THAT ACCOUNT A TOUCH TO COVER SMOOTHING OVER THE NEXT COUPLE OF YEARS OF BOTH UAL, AND ALLOWING SOME OF THIS ADDITIONAL TAX INCREMENT TO COME ONLINE TO DIP INTO THE REGULAR RESERVES TO 8.3%, YOU NEED COUNCIL APPROVAL. CORRECT? THERE IS.

YEAH. BUT DO YOU I'M TRYING TO DISTINGUISH THE TWO.

DO YOU ALSO NEED A COUNCIL APPROVAL FOR THE PENSION RESERVES OR IS IT JUST YOUR DISCRETION? IT'S THE SAME APPROVAL. IT IS. IT'S THE SAME APPROVAL FOR BOTH. IT IS.

WE DON'T WE BY POLICY HESITATE AND ARE MORE RELUCTANT TO TOUCH THE 833 BECAUSE WE BASICALLY USE IT AS A TOP OF THE LINE EQUATION. WHEN STEPHANIE WILL PUT THE BUDGET TOGETHER THIS YEAR, THE FIRST THING THAT'S GOING TO BE ON THE TOP OF THE LINE IS GOING TO BE THE 8.33% LINE ITEM, THAT'S OUR FIRST EXPENDITURE DRAW. SO IT'S UNTOUCHABLE.

THAT IS A MATTER OF PRACTICE AND POLICY. BUT TO YOUR QUESTION IT'S A GOOD ONE.

THE COUNCIL DOESN'T HAVE TO HAVE AN EXTRAORDINARY ACTION.

IT'S NOT LIKE IT TAKES 4/5 OF THEM TO DRAW FROM IT.

OR THEY CAN MAKE THE SAME BUDGET APPROPRIATION FROM THAT FUNDING SOURCE AS THEY COULD THE PENSION RESERVE SOURCE AS THEY COULD ANY UNALLOCATED GENERAL FUND SOURCE. DURING BUDGET SEASON, IT'S THREE VOTES.

ANY OTHER TIME OF THE YEAR, IT'S FOUR VOTES WITHOUT A VETO.

OKAY. WHAT DO AUDITORS SAY ABOUT THIS? AND THAT'S JUST YEAH.

YEAH. GOOD QUESTION. AND I WOULD LOVE TO HAVE I KNOW WE HAVE AN AUDIT EVERY YEAR AND IF THEY COME,

[00:55:05]

YEAH. WE DO THAT THROUGH ACFR. YEAH. THEY LOVE THEY WOULD LOVE AUDITORS LOVE 20 TO 25%.

AND IN FACT IT'S NOT REALLY AUDITORS THAT LOVE IT.

IT'S THE UNDERWRITING COMMUNITY WHERE YOU GET MORE OF A REALITY CHECK ON WHERE YOUR RESERVES ARE.

AND WE'LL GET IT WHEN WE GO OUT TO. ALTHOUGH THE AD VALOREM PROPERTY TAX WON'T REALLY HIT OUR BUDGET THE SAME WAY, I'M NOT SURE WE'LL HAVE THE SAME CONCERN OR CONSIDERATION FROM THE UNDERWRITING COMMUNITY.

BUT WHEN WE GET WHEN WE GET OUR RATINGS FROM OUR CREDIT AGENCIES YOU KNOW, WE'RE DOUBLE A PLUS OR DEPENDING ON WHAT YOU'RE ISSUING THAT'S WHEN YOU GET THAT SORT OF EVALUATION OF DO YOU ARE YOU PROPERLY RESERVED? THE ONLY WAY TO GET TO TRIPLE A IS TO HAVE 30-40% RESERVE.

THAT'S WHEN THE CREDIT AGENCY LOVE IT. DOES IT REALLY MEAN ANYTHING IN YOUR BORROWING COSTS? IT'S A POINT. IT'S QUARTER POINT. IT DOESN'T REALLY AFFECT US TOO MUCH.

BUT THAT'S WHEN YOU GET YOUR REALITY CHECK ON WHAT THE UNDERWRITERS THINK OF YOUR RESERVE BUCKETS.

THEY LOVE WHEN YOU. WHEN I'VE SAT WITH THE RATING AGENCIES OVER THE YEARS, AND I EXPLAINED TO THEM EACH OF THE BUCKETS THAT WE HAVE, THEY LIKE THAT THE AGGREGATE IS IMPORTANT TO THEM, EVEN THOUGH THEY KNOW BY POLICY WE'RE SETTING IT ASIDE FOR SPECIFIC NEEDS.

A LOT OF TIMES THEY GO INTO A CITY AND THEY DON'T HAVE THOSE BUCKETS, SO THEY SEE THE ECONOMIC CONTINGENCY AMOUNT AND THEY GO, OH, YOU GOT A 15% ECONOMIC CONTINGENCY AMOUNT.

THAT'S GREAT. WELL, WHERE'S YOUR RESERVE FOR YOUR FLEET? YOU KNOW, LA COUNTY IS A GREAT EXAMPLE. WHERE'S YOUR RESERVE FOR YOUR IT EQUIPMENT.

OH WELL WE DON'T WE JUST PAY AS WE GO. OH WELL OOPS.

THEY'LL KNOCK FOR THAT. SO WE DO SOME THINGS REALLY WELL.

AND YOU KNOW, WHEN YOU AGGREGATE OUR RESERVES, I THINK WE'RE DOING PRETTY WELL.

COULD WE DO BETTER? YEAH. BUT I ALWAYS QUESTION, WHAT ARE WE GOING TO DO WITH IT? WHEN ARE WE GOING? WHAT CONDITIONS ARE WE GOING TO BE COMFORTABLE SPENDING THAT MONEY ON? ARE WE SETTING IT ASIDE JUST TO SET IT ASIDE? OR DO WE HAVE A TRUE STATED EMERGENCY CONCERN THAT WOULD TRIGGER OUR ACCESS TO THOSE FUNDS? BECAUSE I WOULD HESITATE TO JUST SQUIRREL AWAY A WHOLE BUNCH OF MORE MONEY WITHOUT A KNOWN REASON WHY AND UNDER WHAT CONDITIONS WE WOULD DRAW.

WELL, THAT'S THAT'S THE POINT OF IT, IS THAT IT'S IT'S A CONDITION THAT WE DON'T KNOW.

I KNOW, AND WE'VE HAD WE'VE BEEN INCORPORATED FOR 130 YEARS, TO MY KNOWLEDGE, WE'VE NEVER TOUCHED THE ECONOMIC CONTINGENCY FUND.

SO OUR TRACK RECORD THUS FAR, KNOCK ON WOOD, I DON'T WANT TO JINX IT HERE.

TODAY HAS BEEN PRETTY GOOD. BUT YOU KNOW, PAST PERFORMANCE ISN'T ALWAYS AN INDICATOR OF FUTURE SUCCESS.

AND TO ME, WHEN YOU SAY PAST PERFORMANCES, YOU KNOW, ALL I THINK ABOUT IS THE PAY CUTS EVERYONE GOT.

I DON'T KNOW WHAT PERCENTAGE IT IS, BUT I'VE ALSO HEARD THAT THEY'RE STILL FEELING THOSE PAY CUTS AND THEY HAVEN'T GOTTEN TO THEIR ORIGINAL WELL PAST THAT NOW.

BUT THE FEELINGS REMAIN. THE MORALE HIT THAT WE YOU KNOW, I WILL NEVER I WILL NEVER RECOMMEND THAT.

YOU KNOW THAT THAT'S REAL I MEAN THAT HAPPENED. THAT'S A MINUS THAT'S A NEGATIVE ON THE CITY.

WELL IT TOOK YEARS TO RECOVER FROM THAT. AND IT ALSO TOOK YEARS TO RECOVER ALL THOSE FUNDS THAT WE RAVAGED IN ORDER TO MAKE THE PAYMENTS THAT WE WERE MAKING BECAUSE WE DIDN'T WANT TO TOUCH THE 8.3%.

SO IT TOOK YEARS. WE HAD VEHICLES HERE THAT WERE SCARY TO LOOK AT.

I'M SURE THE PEOPLE DRIVING THEM FELT EVEN WORSE.

AND OUR RESERVE FLEET WAS IN BAD SHAPE. YOU KNOW, THAT WE FELT THE EFFECTS OF THE DRAW ON THE EQUIPMENT REPLACEMENT ACCOUNTS.

WE FELT THAT IN VERY REAL TIME HERE IN THE LAST FEW YEARS, WE'VE SINCE STARTED TO PLAY CATCH UP WITH THAT, AND WE'RE NOW HAVING TO AMORTIZE THAT EXPENSE.

WE'RE HAVING TO ACTUALLY PLAY. YOU KNOW, WE'RE SETTING ASIDE A MORE AGGRESSIVE AMOUNT OF MONEY EACH YEAR TO REPOPULATE THE FUND.

BUT YEAH, OTHER THINGS THAT ARE RECURRING COSTS THAT WHEN WE WERE TALKING ABOUT THE FIRE DEPARTMENT FUNDING I THINK IT WAS TWO YEARS AGO, WE HAD TO REPLACE ALL THE AND THAT'S A LIE. YOU GOT TO REPLACE THAT ALL THE TIME.

IT WAS NOT A ONE TIME EXPENSE. YEAH, IT'S AN EXPENSE THAT TIME BECAUSE THEY WERE DUE FOR IT.

YEAH. AND THAT'S ANOTHER THING. WE BEGIN TO AMORTIZE THAT EQUIPMENT WE PUT.

WE'VE GOT A MORE ROBUST MATERIALS AND SUPPLIES BUDGET WHERE WE'RE TRYING TO DRAW AND SPEND AND WE AND WE STILL.

AND THE SAME THING WITH ALL OF OUR BUILDINGS THAT WE'RE IN THE PROCESS OF, OF ISSUING A BOND.

I MEAN, GRANTED, WHEN YOU GET READY TO DO MAJOR CONSTRUCTION IN THE CITY, BOND IS TYPICALLY THE WAY YOU'VE GOT TO DO IT.

BUT IT'S NOT LIKE WE HAVE A LITTLE KITTY ON THE SIDE THAT CAN COVER THE 10% THAT THAT IS NOT RECOGNIZED WHEN YOU GET READY TO RUN THE BOND.

YOU KNOW, WE STARTED ONE OF THE THINGS THAT I RECOMMEND IN MY PUBLIC WORKS DAYS IS WE STARTED A MAJOR FACILITY RECONSTRUCTION FUND ACCOUNT.

WE PUT SOME MONEY INTO IT, STARTED IT. AND IT HAS A VERY SMALL TRICKLE THAT KIND OF GROWS IT, BUT IT'S NOT AGGRESSIVE ENOUGH, RIGHT, TO GIVE US THE FUNDS WE WOULD NEED TO SET ASIDE FOR MAJOR REPAIR.

WE ALSO DID A BUILDING REPAIR FUND. WE HAVE A SMALL BUILDING REPAIR FUND THROUGH OUR ISF ACCOUNT.

[01:00:04]

BUT THE SAME QUESTIONS. IT'S LIKE, WELL, WHAT? OKAY, WHEN ARE WE GOING TO DRAW THAT MONEY? ARE WE GOING TO DRAW IT WHEN WE'RE GOING TO DO A FULL SCALE REPLACEMENT? ARE WE GOING TO DO IT FOR RENOVATION PURPOSES? SO MORE OFTEN THAN NOT, WE FOCUS ON OUR ANNUAL CAPITAL PROGRAM AND SAY, HEY, WE'VE GOT THIS FACILITY IN NEED.

WE'RE GOING TO SPEND OUR RESOURCES ON THAT. SO YOU KNOW WHAT I LOVE TO SEE MORE MONEY AVAILABLE TO US FOR ALL OF THOSE THINGS.

ABSOLUTELY. BUT WE HAVE TO BE MINDFUL OF WHAT WE WOULD HAVE TO GIVE UP IN THE INTERIM TO GET THERE.

AND THAT'S THE REAL THAT BECOMES THE REAL BUDGETARY QUESTION.

FOR THINGS LIKE MAINTENANCE AND PHYSICAL REPLACEMENT OF FACILITIES.

IF NOTHING ELSE, WE COULD USE THE FORMULAS THAT ARE USED FOR CONDOMINIUM ASSOCIATIONS.

RIGHT. AND IF IT'S GOOD ENOUGH FOR ALL THE RENTERS, IT OUGHT TO BE GOOD ENOUGH FOR US WITH OUR CITY FACILITIES.

EVERY ONCE IN A WHILE, YOU'VE GOT TO REPLACE A ROOF OR A PARKING LOT OR, YOU KNOW, PLUMBING OR SOMETHING.

AND YOU PROBABLY DON'T WANT TO TRY TO COVER ALL THE COSTS, BUT AT LEAST GET A PIECE OF IT.

YEAH. AND, YOU KNOW, IT'S A GOOD POINT. AND WHEN YOU THINK ABOUT IT, WHAT WE'VE BEEN SETTING ASIDE THROUGH OUR SAVINGS, RIGHT. IN ADDITION TO MAYBE BUILDING THIS PENSION RESERVE A LITTLE BIT, WE HAVE BEEN WE HISTORICALLY ON AVERAGE, WE'VE SAID ABOUT $1 MILLION A SIDE OF GENERAL FUND SAVINGS OR DISCRETIONARY RESOURCES TO PUT INTO OUR CAPITAL REPAIR PROGRAM.

AND THAT CAP 300 FUND, WE CALL IT. AND THAT, YOU KNOW, THAT'S REFLECTED ROUGHLY OVER THE OVER TIME, ABOUT 1%, MAYBE A LITTLE MORE THAN THAT 1.5%.

IF YOU GO BACK 15 YEARS OF OUR BUDGET EACH YEAR TOWARDS DEFERRED MAINTENANCE ITEMS, YOU KNOW, AN ASSOCIATION MIGHT BE IN THE 2% RANGE. THEY MIGHT BE IN A HALF PERCENT RANGE DEPENDING ON THEIR NEED AND WHAT THEY'RE LOOKING AT.

SO WE'VE DONE SOME OF THAT. WE DON'T CALL IT THAT NECESSARILY, BUT WE'VE DONE IT IN PRACTICE.

JUST WITH MORE FLEXIBILITY. OKAY. YEAH. SO IT'S ONE OF THOSE THINGS.

IT DOESN'T IT DOESN'T PRESENT VERY CLEARLY ON PAPER.

HEY, WE'VE GOT THIS. YOU KNOW, WE'RE AT WE'VE GOT A TORRANCE HAS THIS.

THEY HAVE A RESERVE TARGET. RIGHT. THIS GOAL.

YOU'RE FAMILIAR WITH THIS? FOR A WHILE THERE, TORRANCE WAS AT 1% RESERVE.

YEAH, ONE. YEAH. LIKE NOTHING. YEAH. THEY'VE SLOWLY BEEN FORTUNATE TO BUILD THAT UP.

THEIR SALES TAX MEASURE AND SOME OTHER THINGS ARE HELPING.

BUT I MEAN THAT'S A VERY STATED POLICY. IT'S AND THEN THERE'S THE POLICY AND THEN THERE'S THE REALITY.

AND WHAT I CAN TELL YOU IS WE HAVE HAD AN 8.33% RESERVE EVERY YEAR I'VE BEEN HERE, EVEN WHEN ARGUABLY WE.

BUT TORRANCE DID NOT LAY OFF, PEOPLE DID NOT GIVE PAY CUTS.

I KNOW, AND I MEAN SO YOU COULD MAKE THE CASE THAT THAT'S.

REDONDO STORY IS NOT THAT SUCCESSFUL. IT'S MUCH HARSHER.

GIVING PAY CUTS TO THE PEOPLE WHO PROVIDE SERVICES TO THE CITY.

IT'S A THAT IS. AND LOOK, I WAS I WAS A PERSON I KNOW I WAS WAY BEFORE YOU RECEIVED A PAY CUT AT THAT TIME.

YEAH, I WAS. I MEAN, I EXPERIENCED THAT NOBODY KNOWS BEFORE YOUR TIME.

AND I WILL TELL YOU, IT'S NOT ON YOU. BUT I WANT TO MAKE SURE WE DON'T DO THAT.

WE NEVER SEE THAT AGAIN. AND I COULDN'T AGREE MORE.

AND THAT'S PRECISELY WHY WE HAVE CALLED THIS OTHER.

RATHER THAN TAKE THAT MONEY AND STICK IT IN THAT UNTOUCHABLE ACCOUNT.

WE'VE CREATED A PARALLEL FUND THAT GIVES US, I LOOK AT IT AS A SMOOTHING FUND.

SO. SO I WISH WE COULD DO SOMETHING SO THAT THAT FUND CANNOT BE USED FOR ANYTHING.

BUT, YOU KNOW, IF IT'S PENSION, MEANING TO GIVE IT TO THE SERVICE PROVIDERS.

WELL, INSTEAD OF BUILDING CAPITAL BUILDINGS OR IMPROVING, THEN LET'S LET'S HOLD THAT FOR OUR FIREFIGHTERS, OUR POLICE. BECAUSE THAT'S REALLY THE, THE REASON THAT WE EXIST NOW.

THIS ENTITY EXISTS JUST TO MAKE YOU FEEL A LITTLE BIT BETTER ABOUT IT.

WHENEVER WE'VE USED IT, IT'S BEEN TO COVER OPERATING EXPENSES.

SO WHEN WE'VE DRAWN DOWN ON THAT FUND, IT'S BEEN TO CLOSE A GAP.

RIGHT. AND WE MAY LIKE I SAID, WE MAY HAVE TO.

IT'S POSSIBLE THERE ARE SCENARIOS AGAIN, WE'RE 40 DAYS AWAY.

THERE ARE SCENARIOS WHERE WE MAY NEED TO DRAW ON IT THIS YEAR TO CLOSE THAT GAP SO WE DON'T FEEL THAT PAIN.

BUT I WILL SAY, YOU KNOW, IF I IF I LOOK BACK TO 2008 AND THE GREAT RECESSION AND HOW SCARY THAT WAS DOES IT FEEL BETTER TO BALANCE THE BUDGET AND NOT DRAW ON SAVINGS IF THERE ARE WAYS TO DO IT? OF COURSE.

AND YOUR PREDECESSORS IN THESE VERY SEATS WERE STRONG ADVOCATES FOR CUTS.

YEAH. BECAUSE THAT'S THE FISCALLY MORE PRUDENT WAY TO MANAGE A CRISIS LIKE THAT.

SO, YOU KNOW, I THERE'S A LOT OF LESSONS LEARNED IN THIS.

YEAH, THERE'S A LOT OF CHOICES. YOU KNOW, THE PRESENTATIONS THAT CAME IN WERE THIS IS WHAT WE'VE GOT TO DO.

AND IT WASN'T LIKE, OH, AND BY THE WAY, WE'VE GOT A BUCKET OF MONEY SITTING OVER HERE THAT WE COULD DIP INTO, BUT WE DON'T WANT TO. WELL THERE WAS, THERE WAS I MEAN, THE COUNCIL WAS FULLY AWARE OF THAT RESERVE.

THE COUNCIL WAS. THE COUNCIL WAS, BUT THE COMMISSION WASN'T.

YEAH. ALL I CAN SAY IS, MIKE, I KNOW SOMETIMES WE GIVE YOU A HARD TIME, BUT I CAN TELL YOU IN THE YEARS THAT I'VE BEEN HERE WHAT YOU'RE

[01:05:02]

OUR NEW CITY TREASURER. I'M REALLY IMPRESSED.

AND IT'S REALLY GETTING BETTER. IT'S REALLY CHANGED A LOT BECAUSE AS I SAID, WHEN I FIRST GOT HERE, WE DIDN'T GET A LOT OF CHOICES. IT WAS TYPICALLY, HERE'S YOUR PRESENTATION, RECEIVE AND FILE AND THIS IS ALL YOU GET.

IT'S GREAT HAVING THESE CONVERSATIONS. AND I APPRECIATE THE FACT THAT YOU PUT YOURSELF OUT THERE AND YOU ACTUALLY WANT TO DISCUSS IT WITH US.

THANK YOU. YEAH. NO. AND LISTEN, I THANK YOU. I APPRECIATE THAT. I'VE ALWAYS ENJOYED WORKING WITH ALL OF YOU AND I THAT'S ONE OF THE REASONS I DO THIS MORE PROACTIVELY BEFORE THE BUDGET COMES OUT, BECAUSE IT'S GOOD TO HAVE THIS DIALOG.

AND, LOOK, YOU'RE THE STEWARDS OF OUR FISCAL WORLD, RIGHT? YOU'RE ONE OF OUR, YOU KNOW, SOME OF OUR CHIEF AMBASSADORS FOR OUR SITUATION, OUR FISCAL STANDING.

SO I'M ALWAYS HAPPY TO GIVE YOU WHATEVER INFORMATION I CAN, EVEN IF IT'S NOT ALWAYS TO EVERYBODY'S SATISFACTION.

ANOTHER QUESTION ON THAT FRONT. GIVE US A TWO MINUTE UPDATE ON THE POWER PLANT.

WHERE IN THE HECK WHO'S HOW MANY SUITS HAVE BEEN FILED NOW AND WHO'S SUING WHO? GOSH, I THINK WE'RE AT NINE SUITS. YEAH. THE DIFFERENT THERE'S, YOU KNOW, WE'RE DEFENDANT.

WE'RE PLAINTIFF. THERE'S MULTIPLE AGENCIES INVOLVED.

COASTAL COMMISSION REGIONAL WATER QUALITY CONTROL BOARD, AES CORPORATION, THE VARIOUS LLCS WHO INITIALLY ENTERED INTO THE PURCHASE AND SALE AGREEMENT WITH AES THAT KIND OF FORMED THE DEVELOPMENT ENTITY.

THERE ARE A MYRIAD OF SUITS THERE. SOME HAVE TO DO WITH THE CITY'S HOUSING ELEMENT AND THE FACT THAT THEY WOULD DEMAND THAT, YOU KNOW, IT BE UNCERTIFIED. THERE ARE SUITS ASSOCIATED WITH TAKINGS IN DIFFERENT VIEWS.

THERE'S BANKRUPTCY PROCEEDINGS RIGHT NOW ASSOCIATED WITH THE LACK OF PERFORMANCE UNDER THE ORIGINAL PURCHASE AND SALE AGREEMENT BETWEEN THE LLCS AND AAS.

THEY'RE ALL ONGOING. I CAN TELL YOU THAT THERE IS NO CERTAINTY AS TO WHAT THE OUTCOME WILL BE AS IT RELATES TO PROPERTY DISPOSITION. IT'S UNCLEAR AT THIS POINT.

BANKRUPTCY IS TAKING AN EXTRAORDINARILY LONG PERIOD OF TIME.

WE WERE TOLD EARLY IN THE PROCESS THAT THESE PROCEEDINGS FEDERALLY TEND TO WRAP UP QUICKLY BY NATURE.

THAT'S PROVING NOT TO BE THE CASE. SO WE ARE WE ARE AN INTERVENOR IN THAT PARTICULAR ENDEAVOR, WHICH MEANS WE'RE KIND OF A THIRD PARTY OF INTEREST, IF YOU WILL.

SO WE DON'T HAVE WE'RE NOT DIRECTLY INVOLVED.

WE'RE INDIRECTLY INVOLVED. MAYBE MORE OF AN OBSERVER.

YOU KNOW, WE'RE EAGERLY, EAGERLY AWAITING THE OUTCOME, BUT WE DON'T HAVE DIRECT OR IMMEDIATE CONTROL OR INVOLVEMENT, SO WE'RE A BIT OF A BYSTANDER TO SOME RESPECTS.

SO WE'LL SEE WHAT HAPPENS. AND IT COULD GO A WHOLE BUNCH OF DIFFERENT DIRECTIONS.

SORRY. PROBABLY A WHOLE LOT OF NOTHING IN THAT ANSWER.

BUT THAT'S KIND OF THE REALITY OF WHERE WE'RE AT.

YES, SIR. ONE LAST QUESTION, MIKE. WHAT'S THE LATEST ON THE SO-CALLED AFFORDABLE HOUSING PLAN? I JUST READ THIS MORNING THAT MANHATTAN BEACH HAS BEEN ASKED TO BUILD SOMETHING LIKE 700 PLUS MORE UNITS, AND WE TALKED ABOUT THAT, I THINK A LONG TIME AGO.

PREVIOUS MAYOR, HE EVEN SAID THIS IS ALL CONTRACTORS GETTING INVOLVED AND PUSHING THE STATE GOVERNMENT TO CREATE THESE FICTITIOUS NUMBERS. AND SO WHAT'S WHERE DO WE STAND ON THAT? YEAH, WE WE'RE IN BETTER POSITION THAN MOST. WE HAVE A CERTIFIED HOUSING ELEMENT.

ONE OF THE, ONE OF THE RISKS YOU HAVE IS UNDER THE NEW KIND OF STATE LAW.

AND HCD STATE HOUSING DEPARTMENT THAT GOVERNS THIS STUFF.

THEY ARE CONSTANTLY APPLYING PRESSURE ON CITIES TO PLAN FOR ADDITIONAL HOUSING STOCK.

RIGHT. IT'S CALLED RHNA. REGIONAL HOUSING NEEDS ALLOCATION.

OUR RHNA NUMBER, ROUGHLY MARK WEINER, OUR DEVELOPMENT DIRECTOR, WOULD KNOW BETTER THAN ME, ROUGHLY 2500 UNITS. SOME A CERTAIN PERCENTAGE OF THOSE UNITS NEED TO BE AFFORDABLE, SOME NEED TO BE MODERATELY AFFORDABLE, AND SOME CAN BE FAIR MARKET. WE SUCCESSFULLY PLANNED FOR AND HAD A WHAT THEY CALL SIX CYCLE HOUSING ELEMENT CERTIFIED BY THE STATE HOUSING DEPARTMENT AND ON A TIMELY BASIS BASED ON STATE LAW THAT PREVENTED US FROM BEING SUBJECT TO PROJECT, ALTHOUGH THIS IS ONE OF THE DISPUTES WITH THE SITE.

SUBJECT TO BEING WHAT THEY CALL A BUILDER'S REMEDY SUBJECT TO A BUILDER'S REMEDY PROJECT PROPOSAL WHERE BY WAY OF THE FACT THAT AS AN AGENCY YOU DON'T HAVE A CERTIFIED HOUSING ELEMENT. NOW ALL OF A SUDDEN THE BUILDER CAN COME IN AND AND BUILD AFFORDABLE HOUSING ANYWHERE THEY WANT TO.

[01:10:02]

WELL, WE WERE TIMELY, WHICH IS GOOD. THERE'S THOSE THAT WOULD LIKE TO DISPUTE THAT AND THINK THAT THEY, YOU KNOW, CAN CIRCUMVENT THAT. BUT THAT'S THAT'S OUR CLEAR POSITION.

NOW, JUST HAVING A PLAN DOESN'T NECESSARILY IMMUNIZE THE COMMUNITY AGAINST CERTAIN STATE BILLS THAT ARE VERY TARGETED ABOUT WHERE AND HOW AFFORDABLE HOUSING PROJECTS CAN BE BUILT, IN PARTICULAR WELL-TRAVELED CORRIDORS LIKE PACIFIC COAST HIGHWAY.

THERE ARE VARIOUS BILLS THAT WOULD ALLOW DEVELOPERS WHERE YOU HAVE WHAT I FORGET THE TERM OF ART.

THEY USE UNDERPERFORMING OR UNDERUTILIZED COMMERCIAL BUILDINGS OR PROPERTIES THAT CAN BE CONVERTED INTO HOUSING WITH CERTAIN DENSITY.

BONUS MEANING THEY CAN BUILD MORE UNITS THAN YOUR NORMAL ZONING WOULD ALLOW IF THEY MEET CERTAIN CRITERIA.

TYPICALLY, IF THEY INCLUDE A CERTAIN PERCENTAGE OF AFFORDABLE HOUSING, A LOW INCOME AFFORDABLE HOUSING AND THAT'S WHAT'S HAPPENING IN MANHATTAN BEACH.

THEY'RE PROPOSING A HIGH DENSITY AFFORDABLE HOUSING PROJECT ON THE CORRIDOR UNDER THE GUISE OF WHATEVER BILL THAT IS.

I DON'T KNOW IF IT'S SB THREE. I MEAN, THERE'S A MILLION BILLS NOW SCOTT WIENER, WHO'S OUT OF THE SAN FRANCISCO BAY AREA, WHO'S BEEN THE CHAMPION FOR MOST OF THESE BILLS UP THERE.

THERE'S SO MANY OF THEM. BUT THE DEVELOPMENT COMMUNITY, THE CONSTRUCTION COMMUNITY ARE ALL VERY SUPPORTIVE OF THESE BILLS BECAUSE THEY THINK IT ULTIMATELY IS GOING TO ALLOW THEM TO DO MORE BUILDING AND CREATE MORE DENSITY AND COMMUNITIES THAT WOULD NORMALLY NOT ACCEPT IT.

WE HAVEN'T HAD TOO MANY OF THOSE. THERE WAS A PROJECT THAT WAS APPROVED JUST HERE DOWN THE STREET ON THE OLD SAINT JAMES PRESCHOOL SITE THAT'S, YOU KNOW, GOT 40 SOMETHING UNITS TO IT YOU KNOW, NOT SUPER DENSE FOR THE SITE, THERE'S A PROJECT THAT'S PENDING DOWN ON PEARL STREET THAT ARE ALL USING THESE LAWS. AND WHAT THESE LAWS ARE INTENDED TO DO IS BASICALLY TAKE OUR PUBLIC HEARING PLANNING COMMISSION CONTROL AWAY WHERE THEY BECOME BY RIGHT PROJECTS IF THEY MEET CERTAIN CONDITIONS.

THAT'S YOU KNOW, WHAT I ALWAYS TELL FOLKS, DON'T TALK TO US, CALL SACRAMENTO BECAUSE THAT'S WHO'S ULTIMATELY DICTATING THIS, THIS, THIS NEW ZONING REALITY. SO WE'RE WE'RE DOING BETTER THAN MOST BECAUSE WE WERE TIMELY WITH OUR HOUSING ELEMENT, BUT WE'RE NOT IMMUNE. I MEAN, THESE ARE THESE PROJECTS ARE CONSTANT.

THEY'RE BARRAGING ALL COMMUNITIES. TORRANCE IS EXPERIENCING THEM. EVERYBODY IS EXPERIENCING THESE PROJECTS.

VERY FRUSTRATING. I HAVE A COUPLE MORE ITEMS NOW.

WE'RE WE'RE AN ADVISORY COMMITTEE, SO IF WE'RE NOT ADVISING, THEN WE'RE USELESS.

RIGHT. SO SO THAT'S THE PURPOSE. MIGHT BE TOO STRONG A WORD, BUT YEAH, I GOT YOU.

YOU ARE AN ADVISORY COMMITTEE. YEAH. WE'RE NOT JUST HERE TO LISTEN AND ASK QUESTIONS.

AT THE END OF THE DAY, YOU KNOW, AT THE END OF THIS DISCUSSION, WE'RE GOING TO DECIDE WHAT IT IS THAT WE WANT TO ALL AGREE TO MIKE TO TAKE TO THE COUNCIL WITH HIM. I THINK HE'S DOING FINE. I DON'T HAVE ANYTHING TO RECOMMEND. OKAY.

THANKS. SO ONE OF THE ITEMS I WANT TO SAY, AS YOU KNOW, OUR REVENUE IN REDONDO BEACH IS ON THE LOW SIDE.

AND I THINK SOME OF OUR COUNCIL MEMBERS ALSO RECOGNIZE THAT.

AND THEY DO WANT TO BRING IN BUSINESSES SO THAT WE BRING IN MORE REVENUE.

YOU KNOW, AND I DON'T KNOW THE PROPER WAY TO DO THIS, BUT THEY NEED TO BE OH SO OUT BE OUT THERE ACTIVELY SEEKING THE HIGH PAYING BUSINESSES, WHATEVER, IF THEY'RE THE TECH INDUSTRY OR WHATEVER THEY ARE RECRUITING, BUT THEY NEED TO HELP THE CITY TO BRING THOSE TO OUR CITY.

ARE ANY OF THEM CURRENTLY ACTIVELY HELPING? AND THEY NEED TO DO MORE.

YEAH. SO THAT'S MY ADVICE. YEAH. EVERYBODY IDEALLY, EVERYBODY'S DOING MORE.

YOU KNOW, I THINK THE CLIMATE OUT THERE IS TOUGH. IT'S NOT THERE.

BUSINESSES AREN'T IN A MAJOR INVESTMENT MODE RIGHT NOW.

THERE'S A LOT OF HEADWINDS IN THAT SPACE. BUT YES, THE COUNCIL IS VERY INTERESTED IN THIS FACT.

YOUR QUESTION TIMING. YOUR QUESTION IS GOOD. LAST NIGHT WE HAD AN ECONOMIC DEVELOPMENT ITEM AND WE ACTUALLY RECOMMENDED THE COUNCIL FORM AN ECONOMIC DEVELOPMENT, A STANDING ECONOMIC DEVELOPMENT SUBCOMMITTEE, WHICH THEY GAVE.

THEY AGREED TO DO. AND WE'LL BE BRINGING THAT BACK IN A COUPLE WEEKS TO WHERE THEY WILL APPOINT TWO COUNCIL MEMBERS AND THE MAYOR, OF COURSE, WHO WILL BE CHARGED TO EFFECTIVELY DO THAT.

ONE OF THE THINGS WE WANT TO DO INITIALLY IS WORK WITH THAT COUNCIL, SUBCOMMITTEE STAFF AND THE BUSINESS COMMUNITY TO IDENTIFY WHAT ARE THE IMPEDIMENTS, YOU KNOW, TO PERHAPS PEOPLE'S INTEREST IN INVESTING IN REDONDO.

WHAT REGULATORY FRAMEWORK? MAYBE WE CAN OPEN UP TO GIVE FOLKS A LITTLE BIT BETTER DIRECT SHOT.

WE'VE GOT TO BE CAREFUL. WE WANT TO MAKE SURE WE'RE TARGETING THE RIGHT BUSINESSES. OF COURSE. AND WE'RE NOT PROLIFERATING BUSINESSES THAT AREN'T DESIRED BY RESIDENTS.

SO IT'S A BALANCING ACT. BUT WE'RE HAVING VERY ACTIVE CONVERSATIONS, AND THIS COUNCIL IS VERY MUCH INTERESTED IN THAT.

SO, YOU KNOW, THE COUNCIL LIKES TO SAY TELL STAFF DO MORE WITH LESS.

[01:15:04]

YOU CAN'T BRING IN REVENUE, RIGHT? THEY'RE THE ONES WHO HAVE TO BRING IN THE BUSINESSES.

SO YEAH, IT'S A TEAM EFFORT. YEAH, IT'S A GOOD POINT.

AND I WILL TELL YOU THIS COUNCIL, THEY'RE OFF TO A FAST START.

THE LAST COUNCIL, THE HARDEST WORKING COUNCIL IN THAT RESPECT.

THEY WORK HARD AS INDIVIDUALS. THEY DON'T JUST WAG THEIR FINGER AND ORDER STAFF TO DO THINGS.

THEY ALL OF THEM, AND I'LL USE THE MAYOR'S TERM, STRIVE TO BE FORCE MULTIPLIERS.

AND I CAN TELL YOU ACROSS THE BOARD, YOU KNOW, AND NILS AND TODD WERE THIS WAY TOO.

THEY THEY ROLL UP THEIR SLEEVES, THEY WORK THEIR BUTTS OFF. SO I HAVE GREAT CONFIDENCE IN THAT AND THAT IT IS VERY MUCH A FOCUS OF THEIRS, BECAUSE YOU CAN'T SAVE MONEY IF YOU DON'T HAVE MONEY.

SO IN ORDER FOR ME TO SAY IT ALL STARTS WITH REVENUE.

THAT'S SOMETHING A FORMER CITY MANAGER INGRAINED IN MY HEAD VERY EARLY IN MY CAREER.

AND IT HOLDS TRUE TODAY. IT ALL STARTS. I CAN'T TELL YOU TO AIM FOR 25% IF I KNOW YOU DON'T HAVE ADDITIONAL REVENUE COMING INTO.

I CAN'T. PRINT MONEY. THAT'S THE ONLY THING WE CAN'T DO AS A CITY.

YES. AND ALSO FOR THE LONG TERM AND BECAUSE TODAY WE DON'T HAVE THAT KIND OF MONEY, WE CAN'T EVEN TALK ABOUT LONG TERM SAVINGS FOR LONG TERM PROJECTS AND SAY, HOW ARE WE GOING TO REBUILD OUR PUBLIC WORKS DEPARTMENT? THE VOTERS THEY LOVE POLICE AND FIRE. SO OF COURSE THEY SAID YES, BUT I DON'T KNOW IF THEY'LL SAY YES.

THE POLLING ON THE COURTYARD WASN'T VERY HIGH.

WE DID. WE TESTED THAT AS PART OF OUR SURVEY WORK.

IT WAS UNDER 50%. YEAH. SO? SO GOT TO FIND AN ALTERNATIVE.

MEANS? YES. AND LASTLY, I DO WANT TO MENTION I THE HOMELESSNESS.

IT'S IT'S A LITTLE CONFUSING WHEN STAFF IS SAYING THEY ARE UNABLE TO GIVE US NUMBERS, HOW MUCH WE HAVE SPENT ON HOMELESSNESS. IT'S ALMOST. I DON'T KNOW IF IT'S A POLITICAL ISSUE.

I DON'T KNOW IF IT'S MAYBE SOMETHING ONE OF THE COUNCIL MEMBERS MENTIONED.

THEY DON'T WANT TO SHARE NUMBERS, BUT WE SHOULD BE.

I DON'T KNOW, I'M JUST SPECULATING BECAUSE IT'S TO ME, IT'S NOT REALISTIC THAT WE ARE UNABLE TO COME UP WITH A NUMBER, A FIGURE, APPROXIMATE FIGURE, LET'S SAY EXCLUDE STAFF HOURS.

HOW MUCH WE HAVE SPENT ON HOMELESSNESS. YEAH, NO, IT'S A GOOD QUESTION.

AND I THINK IT'S SOMETHING THE ATTORNEY'S OFFICE WHO HAS BEEN SUPERVISING THESE PROGRAMS IS AWARE OF.

THERE ARE DIFFERENT REPORTS THAT HAVE BEEN PRODUCED OVER TIME.

I KNOW, AND THIS HAS COME UP WITH OTHER COMMISSIONS. CAN WE HAVE JUST A CENTRAL REPORT THAT SHOWS ALL OF THE CATEGORIES? AND, AND THERE IS A LITTLE BIT OF A CHALLENGE BECAUSE YOU KNOW, DO WE DO WE ALLOCATE THE TIME ASSOCIATED WITH THE QUALITY OF LIFE, SERGEANT, THAT WE CREATED YEARS AGO BEFORE WE STARTED OUR HOMELESS PROGRAM.

IT WAS DESIGNATED TO HELP BE RESPONSIVE TO QUALITY OF LIFE ISSUES THAT HAVE GROWN INTO PRIMARILY A HOMELESS RESPONSE CAPACITY.

IS THAT PART OF THE CALCULATION? YOU KNOW, THAT'S PART OF OUR POLICE FORCE.

YOU KNOW, WE NOW HAVE A RESOURCE OFFICER, A DEDICATED POLICE OFFICER THAT'S PART OF THAT QUALITY OF LIFE UNIT.

WE HAVE MSOS AND CODE ENFORCEMENT PERSONNEL THAT ARE PART OF THAT UNIT, BUT DON'T NECESSARILY SPEND TIME ON HOMELESSNESS, BUT SPEND TIME ON THE QUALITY OF LIFE ISSUES. SO THERE'S THAT CONVERSATION.

AND AT ONE POINT WE SORT OF LUMPED SOME OF THAT SPENDING INTO THE CALCULATIONS.

AND THEN THERE'S THE FAR MORE DIRECT EXPENDITURES, SUCH AS THE PALLET SHELTER.

RIGHT. WHICH UP UNTIL NOW HAVE BEEN AND APPEAR TO BE ONGOING, HAVE BEEN COMPLETELY EXTERNALLY FUNDED.

WE HAVEN'T SPENT A SINGLE GENERAL FUND DOLLAR ON THE PALLET SHELTER PROGRAM.

NOT BUILDING IT OR OPERATING IT. THAT'S ALL BEEN EXTERNALLY FUNDED.

LILA OMURA, OUR HOUSING NAVIGATOR, IS SOMETHING AS A GENERAL FUND EXPENSE WE HAVE COMMITTED TO DOING.

CANDIDLY, SHE'S WORTH TEN X THE MONEY WE'VE BEEN SPENDING ON HER TIME.

THE COUNCIL DID ASK FOR ADDITIONAL ADD ADDITIONAL RESOURCE FOR A SUPERVISOR POSITION NOW TO GROW THAT THAT CAPACITY A LITTLE BIT.

THAT WAS SOMETHING THAT WAS OUT OF THE GENERAL FUND BUDGET. SO THAT WOULD BE SOMETHING THAT I WOULD SAY IS A DIRECT HOMELESS ALLOCATION SPEND.

AS A, AS A FULL TIME COST. BUT OUTSIDE OF THOSE TWO POSITIONS, SINCE VIRTUALLY EVERY OTHER THING WE'VE DONE THE HOMELESS, THE HOMELESS COURT, THE SUPPORT FOR THE HOMELESS COURT, THOSE HAVE BEEN EXTERNALLY FUNDED THROUGH GRANTS, EITHER AT THE COUNTY LEVEL, THROUGH THE LOSS OF MONEY THAT WAS REFERENCED, WHICH IS THE, YOU KNOW, THE COUNTY SALES TAX MEASURE OR SOME PRIVATE GRANTS THAT WE'VE ACCRUED THROUGH HEALTHNET.

SO WE HAVE DONE AN EXTRAORDINARY JOB OF FUNDING THIS ALL OF OUR SERVICES, WHICH, AS YOU KNOW, WIDELY ACCLAIMED, FUNCTIONAL, ZERO, ALL THE GREAT ACCOLADES THAT HAVE COME WITH THAT.

THEY'RE 90%. I MEAN, LARGELY SELF-FUNDING AND EXTERNALLY FUNDED, BUT FOR THE HOUSING NAVIGATOR POSITION, WHICH IS PARAMOUNT TO OUR SUCCESS. AND I THINK, LIKE I SAID, I MEAN, THERE ISN'T MORE VALUE BEING CREATED BY A SINGLE POSITION IN THE CITY

[01:20:08]

I THINK THAT BY HAVING SOME ACCOUNTABILITY ON EVEN THE EXTERNALLY FUNDED GRANTS, I THINK THAT MAKES IT MORE ATTRACTIVE TO POTENTIAL ADDITIONAL FUNDS TO ALSO BE ADDED. AND ALSO I THINK IF YOU BUDGET AND YOU MANAGE AND YOU CREATE OBJECTIVES THAT INCLUDE THOSE FUNDS THAT ARE EXTERNAL FUNDS, IT HELPS TO MANAGE THE FUNDS THAT AREN'T EXTERNAL FUNDS SO THAT YOU CAN KIND OF COMBINE AND AND KIND OF MULTIPLY THE EFFECT. YEAH. NO QUESTION.

I THINK THERE'S THERE'S SOME VALUE IN PURSUING A SYSTEM THAT ACTUALLY DOES INCLUDE.

YEAH. AND I AND I UNDERSTAND THE REQUEST I REALLY DO AND I AND I AND I HOPE I'M NOT CIRCUMVENTING OR OBFUSCATING IT.

I WILL TELL YOU I UNDERSTAND THE GOAL WOULD BE TO HAVE IT ALL IN ONE PACKAGE.

IT MIGHT BE THAT WHAT NEEDS TO HAPPEN IS KIND OF A COMBINATION OF REPORTS, SO EVERYONE CAN BE EDUCATED ON WHAT HAS BEEN HAPPENING, BECAUSE THE STORY IS A VERY GOOD ONE AND THAT'S THE THAT'S THE POINT.

A VERY GOOD TO BE ABLE TO MAKE THE MAKE THAT STORY KNOWN.

IS IT A MADE UP STORY? THAT'S WHAT I'VE BEEN TELLING A LOT OF A LOT OF QUESTIONS ON IS THIS A MADE UP STORY? NO. I CAN TELL YOU AT FIRSTHAND, I MEAN, OUR ACCOUNTING CAN TELL YOU FIRSTHAND WHERE THIS MONEY'S COMING FROM.

AND WE HAVEN'T PUT IT INTO A MINI FINANCIAL LIKE SO WE LIKE WE DO WITH THE SEASIDE LAGOON OR THE PERFORMING ARTS CENTER.

AND THOSE HAVE BEEN HELPFUL OVER TIME. YOU KNOW, JOY IS JUST GETTING STARTED.

I KNOW SHE'S AWARE OF THIS REQUEST FOR SORT OF, YOU KNOW, A KIND OF A DOCUMENT TO HELP UNDERSTAND MORE ACUTELY WHAT THE ACCOUNTING LOOKS LIKE. I DON'T KNOW, YOU KNOW, STEPHANIE'S TALKED A LITTLE BIT.

I THINK SHE'S WORKING ON SOMETHING THAT MIGHT FLOW THROUGH THE COUNCIL'S BUDGET PROCESS THIS YEAR.

I DON'T KNOW IF IT'LL BE A BUDGET RESPONSE REPORT OR SOME, JUST SORT OF GENERAL REVIEW, BUT I HEAR YOU, I HEAR YOU. YOU KNOW, I'LL DO WHAT I CAN TO WORK WITH THAT OFFICE TO SEE IF WE CAN CREATE SOMETHING THAT YOU CAN SINK YOUR TEETH INTO.

BUT I CAN TELL YOU, IF YOU'RE CONCERNED THAT THE GENERAL FUND SPENDING IS REALLY IS REALLY DIRECTED AT THE HOUSING NAVIGATOR POSITION AND THE POLICE RESPONSE THAT WE'VE THAT WE'VE GROWN TO SUPPORT THESE EFFORTS. THE REST OF THE FUND.

THE REST OF THE PROGRAMS, HOMELESS COURT, PALLET SHELTER, THOSE HAVE ALL BEEN GRANT FUNDED.

SO THE GRANTS COME DIRECTLY TO CITY ATTORNEY'S OFFICE.

THEY COME TO THE CITY. THE CITY ATTORNEYS SUPERVISE THE FUND TO AT LEAST TRACK THOSE GRANTS.

AND THEN WHEN WE SIGN OFF CONTRACTS, WHETHER IT'S FOR SHELTER OR A CONSULTANT WHO'S DOING A SURVEY WE SHOULD BE ABLE TO TRACK.

IT DOESN'T HAVE TO BE 100%. I UNDERSTAND WE CANNOT.

WE DON'T TRACK IN MUNICIPALITIES. WE DO NOT TRACK HOURS.

HOW MANY HOURS EACH OFFICER SPENDS DOING WHAT? WE DON'T DO THAT. AND THAT'S NEVER GOING TO HAPPEN BECAUSE IT DOESN'T WORK THAT WAY IN GOVERNMENT.

BUT WE SHOULD BE ABLE TO TRACK THE CONTRACT, THE COST OF CONTRACTS, FOR EXAMPLE.

SO I THINK THERE'S SOME CONFUSION IN WHAT THE ASK IS.

IT'S NOT WHETHER IT WHETHER THE PROJECT HAS BEEN PAID FOR OR NOT.

IT'S WHAT HAPPENS IF THAT FUNDING GOES AWAY. AND IN TERMS OF WE DON'T TRACK HOURS FOR, FOR PEOPLE.

POLICE DEPARTMENT USED TO PUT A COUPLE OF OFFICERS IN THE MALL, AND IT WAS A LINE ITEM BUDGET, AND THERE WAS A SERGEANT AND A COUPLE OF OFFICERS THAT WERE IN A LINE ITEM BUDGET, AND YOU KNEW THAT THEY WERE ASSIGNED EIGHT HOURS A DAY TO THE MALL AND YOU COULD FIGURE IT OUT. IF WE HAVE OFFICERS THAT ARE SPENDING HALF OF THEIR TIME, OR THEY'RE MEANT TO BE SPENDING HALF OF THEIR TIME DOING THAT, OR WE'VE GOT THE CITY ATTORNEY'S OFFICE THAT'S SPENDING ONE DAY A MONTH WORKING ON HOMELESS COURT.

THAT'S A COST. AND IT'S SOMETHING THAT WE WOULDN'T BE INCURRING, EVEN THOUGH WE'RE GOING TO PAY THOSE PEOPLE TO BE AT WORK, WHETHER THEY'RE IN HOMELESS COURT OR NOT. IT'S SOMETHING THAT'S DEFINITELY ATTRIBUTABLE TO THAT.

AND IF FUNDING GOES AWAY, THAT WE'VE GOT TO ABSORB THAT IN OUR BUDGET.

AND THAT WAS REALLY THE QUESTION, BECAUSE WHAT IF THE FUNDING GOES AWAY? WHAT ARE WE GOING TO DO? AND THE PALLET SHELTERS.

THEY'RE PAID FOR. OPERATIONAL COSTS ARE PAID FOR.

WHAT HAPPENS IF WE DON'T HAVE ONGOING? ARE WE GOING TO WAIT UNTIL THEY'RE 50 YEARS OLD, LIKE CITY HALL? WELL, I WOULD HOPE WE'LL HAVE SOLVED THE BROADER CRISIS IN 50 YEARS, BUT NO.

THAT QUESTION IS THAT QUESTION IS TOP OF MIND TO ME AS MUCH AS IT IS TO ANYBODY.

RIGHT? IF WE WERE TO LOSE, IF WE WERE TO LOSE THAT THIRD PARTY RESOURCE THAT WE'VE BEEN BASICALLY DRAWING ON TO COVER THESE COSTS, ARE WE PREPARED TO ABSORB THE $600,000 A YEAR TO OPERATE THE PALLET SHELTER, OR WHATEVER IT MIGHT BE, INTO THE GENERAL FUND? NO, WE ARE NOT. WE'LL BE FACED WITH A VERY DIFFICULT CHOICE.

DO WE CONTINUE THE PROGRAM? DO WE SHUTTER THE PALLET SHELTER? THAT'S WHY IT'S CREATED THE WAY IT IS TO BE IDEALLY SELF-FUNDING TO A POINT WHERE FUNDS ARE STILL THERE BECAUSE THE NEED IS STILL THERE. IF THE FUNDS GO AWAY, IDEALLY THE NEED HAS GONE AWAY.

[01:25:04]

BUT THAT IS THAT IS A CONCERN FOR ALL OF US, OBVIOUSLY, GOING FORWARD.

THUS FAR, IT DOES APPEAR THAT THAT THAT STREAM OF FUNDING WILL CONTINUE AND WE WILL CONTINUE TO HAVE ACCESS TO IT TO COVER OUR COSTS.

BUT I BUT AGAIN, I THINK, YEAH, THE TRANSPARENCY QUESTION IS A FAIR ONE.

I THINK THERE ARE REPORTS, IF YOU REALLY DIG THROUGH THE PAST BUDGETS, AND IF YOU GO TO THE ADMIN REPORTS ABOUT THE CONTRACTS THAT WE'VE ISSUED THAT HAVE BEEN ASSOCIATED WITH IT, IT'LL TALK ABOUT WHERE THE FUNDS ARE COMING FROM.

I KNOW, AGAIN, IT'S TOO MUCH TO ASK ANYONE AS A COMMISSION TO PICK AND PULL ALL OF THAT, AGGREGATE IT AND DO IT YOURSELF.

AT SOME POINT, THE COMMISSIONER WHO DID HAVE THAT. YEAH, HE DID THAT. IF THERE'S SOMEONE THAT'S BEEN RESPONSIBLE FOR THIS PROGRAM FROM DAY ONE, THEY SHOULD HAVE ALL THOSE REPORTS. WE SHOULDN'T HAVE TO GO READ THROUGH THOUSANDS OF PAGES OF CITY COUNCIL DOCUMENTS TO FIND IT.

THE PERSON THAT'S BEEN IN CHARGE SHOULD KNOW HOW MUCH IT'S COSTING AND WHAT RESOURCES ARE BEING ALLOCATED TO IT.

DOES THE FIRE DEPARTMENT NEED ANOTHER RESCUE JUST IN ORDER TO HANDLE RESCUES OF THE HOMELESS.

NO, NO, NO. I CAN TELL YOU. NO WE DON'T. AND IT'S INTERESTING THAT OFF THE TOP OF YOUR HEAD.

AND MAYBE IT WAS IT WAS A FAUX PAS, BUT YOU SAID IT COST $600,000 A YEAR.

HOW DID YOU GET TO THE NUMBER? YEAH. I MEAN, HOW DOES ANYBODY GET TO THE. IS IT 600,000 OR 1,000,006? YEAH. I MEAN, YOU KNOW, IT DEPENDS. YOU'VE GOT THE WRAPAROUND SERVICES, YOU'VE GOT THE SECURITY, YOU'VE GOT THE MENTAL HEALTH CLINICIANS THAT ARE ASSIGNED TO DO TREATMENT.

THERE ARE SOME THINGS THAT I THINK WE CAN VERY DEFINITELY ATTRIBUTE TO IT, AND WE SHOULD BE ABLE TO GET A WRAP AROUND THAT WITH FOOTNOTES, JUST LIKE YOU DO IN A FINANCIAL STATEMENT. SAY, BY THE WAY, WE CAN'T ALLOCATE WE CAN'T PUT A NUMBER ON THIS, BUT THIS IS KIND OF WHAT IT LOOKS LIKE. YEAH, I AND I THINK THE REPORTING IS AVAILABLE THERE AND IT'S BEEN CREATED AGAIN, MAYBE NOT IN THAT CENTRALIZED CONTEXT THAT EVERYBODY'S BEEN ASKING ABOUT HERE OF LATE, BUT THAT THAT DATA IS THERE.

AND I SUSPECT WHEN WE GET THROUGH BUDGET, THERE'LL BE A, YOU KNOW, IF FOR NO OTHER.

IF IN NO OTHER WAY. HERE'S A PALLET SHELTER BREAKDOWN.

HERE'S A HOMELESS COURT BREAKDOWN. YOU KNOW, HERE'S WHAT WE SPEND ON OUR HOUSING NAVIGATOR POSITION, WHICH, YOU KNOW, AND NOW OUR SUPERVISOR POSITION.

SO I THINK THAT INFORMATION IS THERE. IT'S JUST A MATTER OF PUTTING IT TOGETHER AND HAVING IT AVAILABLE TO EVERYBODY.

AND AGAIN, CONSTRUCTING REPORTS IN RESPONSE TO THESE REQUESTS TAKES TIME, YOU KNOW, AND THEY OBVIOUSLY HAVE A LOT TO DO ON THEIR PLATE.

SO IT YOU KNOW, WE'LL SEE, YOU KNOW, IF TIME CAN BE FREED UP TO DO THAT HERE OVER THE NEXT COUPLE OF MONTHS.

BUT CERTAINLY UNDERSTAND THE REQUEST AND WE'LL, WE'LL TALK TO THE CITY ATTORNEY'S OFFICE ABOUT IT AND HOPEFULLY BE ABLE TO PROVIDE YOU SOME, YOU KNOW, MAYBE IT'LL TAKE A LITTLE BIT, MAYBE WE'LL HAVE TO STRING SOME OF IT TOGETHER. BUT START TO GIVE YOU SOME CONTEXT THE SAME WAY I HAVE CONTEXT TO KNOW. YEAH. THERE'S SEVERAL HUNDREDS OF THOUSANDS OF DOLLARS OF SERVICE CONTRACTS THAT SUPPORT THE PALLET SHELTER THAT ARE ALL GRANT FUNDED.

WE HAVE A HEALTH NET, YOU KNOW, ONE POINT, WHATEVER IT IS, $3 MILLION HEALTH NET FUND, A PRIVATE GRANT FUND THAT'S SET ASIDE FOR US TO EXECUTE THE EXPANSION OF THE PALLET SHELTER PROGRAM. I KNOW THAT MONEY'S THERE. IT'S WAITING FOR US TO BE SPENT.

SO, YOU KNOW, WE SEE THAT STEPHANIE SEES THAT A LITTLE MORE DIRECTLY THAN EVERYBODY ELSE WOULD.

NO ONE'S JUST SAT DOWN YET AND GONE. OKAY, LET'S GET IT ALL OUT ON PAPER FOR YOU IN A SINGLE SPOT.

SO THE OTHER PART QUICK QUESTION IS WE'RE HOUSING X NUMBER OF PEOPLE.

WE JUST GOT THROUGH CUTTING A CONTRACT TO EXPAND THE HOMELESS SHELTER PROJECT.

HOW DOES ANYBODY COME UP WITH AN ESTIMATE OF WHAT DOES IT COST FOR THE NEXT ROUND.

DO WE JUST AT SOME POINT IN TIME SOMEBODY SAYS, OH, WE NEED TEN MORE HOUSING UNITS? NO, THAT WAS THAT WAS PRESENTED AS PART OF LAST YEAR'S BUDGET WHEN THAT PROJECT WAS APPROVED.

YEAH, YEAH, YEAH. THE ESTIMATE ON THE ONGOING OPERATING EXPENSES ASSOCIATED WITH THE EXPANSION, THAT'S IN A BRR.

REALLY? YEAH. OKAY. I DON'T RECALL. SO THERE IS THAT'S WHAT I MEAN.

THERE'S INFORMATION. ALL THE OTHER THINGS THE PERSONNEL, THE OPERATING COSTS, THE PALLET SHELTERS, IT WAS ALL ROLLED UP. NICE LINE ITEMS SAYS WE'RE GOING TO ASSIGN A COP TO THIS AND OR A COUPLE OF PUBLIC WORKS FOLKS TO CLEAN OUT THE SINKS OR SOMETHING. I MISSED THE FIRST PART OF THAT.

NO TELL ME. I KNOW I THINK WHAT IT WAS THAT THERE WAS A DISCUSSION.

THERE WAS A DECISION PACKAGE OR BRR ABOUT WHAT IT COST TO EXPAND THE PALLET SHELTER PROGRAM.

IS THERE EXTERNAL FUNDING AVAILABLE TO DO SO? AND THE AND BOTH OF THOSE ANSWERS WERE PROVIDED IN THAT DOCUMENT.

AND WE DID OBTAIN THE HEALTHNET GRANT TO COVER THAT EXPENSE.

SO THE APPROVAL OF THE EXPANSION WAS CONTINGENT ON THE CITY OBTAINING THAT GRANT, WHICH WE WERE FORTUNATE TO DO.

SO. YEAH, I TOTALLY UNDERSTAND THE REQUEST AND I APPRECIATE IT.

AND IT'S SOMETHING THAT, YOU KNOW, WE'LL SEE IF WE CAN GET YOU SOME OF THAT INFORMATION.

I CAN TELL YOU, THOUGH, FROM A GENERAL FUND PERSPECTIVE, AT LEAST UP UNTIL NOW, AND I DO THINK THIS WILL CONTINUE FOR THE FORESEEABLE FUTURE.

OUR DIRECT EXPENSES ARE IN THE HOUSING NAVIGATOR WORLD AND THE POLICE OFFICER WORLD.

[01:30:02]

DIRECT GENERAL FUND EXPENSES. AND I AND I CAN TELL YOU FROM MY POINT OF VIEW, THAT HAS BEEN MONEY EXTREMELY WELL SPENT.

FOR WHAT IT'S WORTH. ANY OTHER ADVICE FOR OUR CITY MANAGER? ONE QUESTION. WHEN ARE WE GOING TO SEE THE PROSPECTIVE BUDGET AND ALL THE SUPPORTING MATERIAL? IT WILL BE DELIVERED TO THE COUNCIL MIDDLE OF MAY. MAY.

MAY 16TH, I BELIEVE, IS OUR CHARTER DEADLINE.

THE WAY THE WEEK IS LINING UP, I THINK STEPHANIE AND I ARE TRYING TO STRIVE TO GET IT OUT ON MAY 15TH, WHICH IS THE THURSDAY, I THINK, IF I REMEMBER CORRECTLY.

SO YOU'LL AS SOON AS THAT GETS INTO COUNCIL'S HANDS, DEFINITELY WILL GET YOU AN EMAIL THAT GIVES YOU THE LINK TO THE DOCUMENT.

YOU'LL GET A CAPITAL PROJECT PRIMER, KIND OF A LIST OF PROJECTS THAT ARE BEING CONSIDERED FOR RECOMMENDATION, NOT THE FINAL LIST BEFORE IT GOES INTO PROPOSED BUDGET.

BUT YOU'LL GET THAT AT THE END OF THE MONTH IN YOUR JOINT MEETING WITH THE COMMISSION. I THOUGHT THAT IN THE LAST COUPLE OF YEARS, THERE WAS SOME PRELIMINARY BUDGET INFORMATION THAT WE RECEIVED BEFORE IT TURNED INTO THE FINAL FORM GOING TO THE COUNCIL? NO, BECAUSE IN THE PAST WE'VE BEEN ABLE TO COMMENT TO THE COUNCIL IF WE RECEIVE IT AFTER THEY GET IT.

WE CAN'T DO THAT. NO, THAT'S WHEN YOU COMMENT.

SO WHAT WE WHAT I DO IS I COME BACK TO YOU IN MAY AND OR EARLY JUNE AND TAKE YOUR FEEDBACK ON THE BUDGET THAT WE THEN GET, AND YOU'LL DO YOUR LETTER AND YOU'LL ADVISE THE COUNCIL BEFORE THEY ADOPT THE BUDGET, REMEMBER. THEY'LL GET MY PROPOSED BUDGET IN MIDDLE OF MAY.

THEY WON'T ACT ON IT UNTIL JUNE. THEY'LL HAVE AT LEAST THREE HEARINGS, AND THEN THEY'LL ADOPT THE BUDGET IN THE LATTER PART OF JUNE.

YOUR FORMAL INPUT ON THE BUDGET COMES BETWEEN ME DELIVERING IT AND THEIR FINAL ACTION.

THAT'S USUALLY WHEN YOU'LL SEE ME AGAIN. OKAY.

YEAH. MIGHT BE MY BAD. IT SEEMED TO ME THAT WE GOT IT EARLIER THAN THAT, SO THAT WE HAD MORE THAN ONE OPPORTUNITY TO DISCUSS IT, BECAUSE TYPICALLY WHAT YOU'LL GET IS YOU'LL GET THE YOU'LL GET THE CIP DOCK END OF APRIL BEFORE IT GOES FORMALLY TO COUNCIL.

YOU'LL GET THE DELIVERABLE OF THE BUDGET. I'LL USUALLY COME HERE.

STEPHANIE WILL PRESENT TO YOU WHAT THE BUDGET ENTAILS, WHAT MY PROPOSED BUDGET ENTAILS.

YOU THEN LOOK AT THAT. YOU'LL USUALLY TAKE TWO MEETINGS TO THEN DECIDE, OKAY, WHAT ARE WE GOING TO SAY? ARE WE GOING TO DO IT IN ONE MEETING, ONE MOTION? YOU KNOW, YOU'VE PREPARED AND DRAFTING THOSE LETTERS IN THE PAST. I LIKE THE FOLLOWING THINGS I LIKE DECISION PACKAGES ONE THROUGH 60.

I DON'T LIKE NUMBER 49. YOU KNOW, WHATEVER IT IS, YOUR LETTER THEN GOES TO COUNCIL.

THEY'LL CONSIDER THAT AS PART OF THEIR HEARING DELIBERATIONS BEFORE THEY MAKE THEIR FINAL CHOICE. OKAY.

YEAH. AND I SHOULD ADD ONE MORE THING. BEFORE WE CLOSE UP TODAY, I HAVE APPOINTED STEPHANIE MEYER AS OUR FINANCE DIRECTOR.

OH, CONGRATULATIONS. CONGRATULATIONS. GOOD CHOICE.

SO WE CAN DROP INTERIM NOW. INTERIM IS OFF THE OFF THE TICKET.

IT'S EFFICIENT. SO STEPHANIE'S DONE A GREAT JOB.

IT'S ALL OF, YOU KNOW, FINANCE IS A VERY CHALLENGING FIELD.

AND APPRECIATE ALL HER EFFORTS. SHE'S DONE VERY WELL IN HER ACTING CAPACITY.

AND WE WENT THROUGH A FULL RECRUITMENT BROAD PROCESS, HAD A FULL PANEL EVALUATE THE VARIOUS CANDIDATES BEFORE MAKING RECOMMENDATIONS TO ME.

AND, AND I CAN TELL YOU IT WAS AN EASY CHOICE.

THE PANEL UNANIMOUSLY RECOMMENDED STEPHANIE AND MADE MY JOB REAL EASY.

SO GOOD. GOOD DECISION, GOOD DECISION. YEAH. WE'RE EXCITED.

SO YOU'LL GET STEPHANIE FOR THE FORESEEABLE FUTURE.

GOOD DEAL. ALL RIGHT. ANYTHING ELSE? OTHER. ONE OTHER SUGGESTION.

YOU DID NOT SAY MUCH TODAY. THAT'S BECAUSE EVERYBODY ELSE DID SUCH AN EXCELLENT JOB.

OKAY? NO OTHER. YOU SAID A LOT TODAY. NO OTHER ADVICE.

NO OTHER QUESTIONS. OH, I JUST WANTED TO ADD THERE'S NO PARTICIPANTS ON ZOOM AND NO PUBLIC COMMENTS.

ALL RIGHT. ONE SUGGESTION I WOULD MAKE AS PART OF YOUR ORDER OF AGENDA IS YOU BRING MIKE UP NEXT.

I SAW THERE WERE A FEW OTHER ITEMS THAT WERE ON THE AGENDA THAT MIGHT BE BEFORE J2.

YES, I THINK YOU MIGHT WANT TO HEAR FROM MIKE NEXT IN YOUR ORDER.

JUST A GENTLE SUGGESTION. MOVE TO RECEIVE AND FILE.

YES. OKAY. RECEIVE AND FILE. AND WITH ALL OUR GOOD ADVICE TO YOU.

LOVE THE CONVERSATION. ULTIMATELY INCREASE THE REVENUE SO YOU CAN INCREASE SAVINGS.

I LIKE THAT. THANKS FOR A MOTION AND A SECOND.

THANK YOU. I NEED A SECOND. SECOND. OKAY. THANK YOU.

ALL IN FAVOR? AYE. THANK YOU. THANK YOU. SEE YOU AGAIN.

ALL RIGHT. THAT'S. WE'RE ON ITEM NEXT ITEM J2.

INFORMATION TECHNOLOGY PRESENTATION BY OUR IT DIRECTOR, MIKE COOK.

I'M NEXT ANYWAY. ALL RIGHT. ALL RIGHT.

GOOD EVENING EVERYBODY. THIS IS PRETTY NORMAL FOR ME TO WALK INTO A ROOM AND GET HIT WITH ABOUT 15 IT QUESTIONS.

[01:35:02]

AS PART OF MY DUTIES, I DO GET TO PLAY WITH NEW TECHNOLOGY AND GET PAID FOR IT.

SO THIS PRESENTATION IS KIND OF NO EXCEPTION TO THAT.

I AM USING A NEW TOOL. THIS IS SOMETHING THAT STARTED AS A, AS A AI GENERATED THING THAT I THEN REWORKED AND DID MY OWN SPECIAL THING WITH.

SO THIS IS GOING TO BE PRETTY VISUAL, LOTS OF STUFF MOVING AROUND ON THE SCREEN, BUT I PROMISE YOU I'LL BE MORE TALKING THAN VISUALS HERE.

SO I'M GOING TO KIND OF GET STARTED WITH GOING A LITTLE BIT OVER HOW IT IS FUNDED AT THE CITY.

WE ARE AN INTERNAL SERVICE FUND, SO WE EFFECTIVELY GET OUR REVENUE BASED OFF OF THE FULL TIME EMPLOYEE ACCOUNTS AND THE DEPARTMENTS.

AND BASED OFF OF THOSE NUMBERS, WE ARE ALLOCATED A LITTLE BIT OF MONEY.

YOU KNOW, JUST LIKE THE FLEET FUND, YOU KNOW, JUST LIKE SOME OF THESE OTHER INTERNAL SERVICES THAT THE CITY HAS, WE GET A LITTLE BIT FROM EACH EMPLOYEE IN THE CITY, THERE ARE AROUND 700 TOTAL PEOPLE THAT ACTUALLY CONTRIBUTE TO THE IT FUND.

AND I WOULD SAY ABOUT 550 OF THOSE ARE WHAT I WOULD CALL HEAVY USERS, PEOPLE WHOSE JOB IT IS TO SIT IN FRONT OF A COMPUTER ALL DAY LONG.

SO THEY'RE EFFECTIVELY COMPLETELY DEPENDENT ON US TO, TO GET THEIR JOBS DONE.

SO I WANTED TO GO A LITTLE BIT THROUGH KIND OF THE WAY OUR BUDGET IS LAID OUT.

THERE'S KIND OF TWO BIG BUCKETS. ONE, MIKE ALLUDED TO A LITTLE BIT EARLIER CALLED THE IT REPLACEMENT PROGRAM.

AND THEN WE'VE GOT THE CORE BUDGET, JUST LIKE MOST DEPARTMENTS HAVE. SO THE IT REPLACEMENT PROGRAM IS REALLY, REALLY CRUCIAL TO HOW THE IT SHOP DOES OUR BUSINESS.

YOU KNOW, WHEN WE BUY COMPUTERS FOR THE CITY, TYPICALLY WE WILL ASSIGN A LIFESPAN WITH THEM.

USUALLY A DESKTOP COMPUTER LASTS ABOUT FOUR YEARS.

SOMETHING LIKE A PIECE OF NETWORK HARDWARE USUALLY LASTS A LITTLE BIT LONGER. SERVERS USUALLY LAST SOMEWHERE BETWEEN 5 AND 8 YEARS.

SO WHEN WE MAKE BIG PURCHASES, EVEN IF IT'S, YOU KNOW, IF IT'S A SINGLE ITEM THAT MIGHT COST A COUPLE HUNDRED THOUSAND DOLLARS, OR IT'S MANY SMALL ITEMS LIKE 500 COMPUTERS THAT ARE A COUPLE THOUSAND DOLLARS APIECE, THOSE ARE THE SORTS OF THINGS THAT WOULD GO INTO THE IT REPLACEMENT PROGRAM.

SO YEAR OVER YEAR, DEPENDING ON WHAT'S DUE FOR REPLACEMENT, YOU'RE GOING TO SEE THAT IT REPLACEMENT PROGRAM EBB AND FLOW.

SO THIS UPCOMING YEAR IS SOMEWHERE AROUND $280,000.

AND A COUPLE A COUPLE MORE YEARS WHEN THE NETWORK EQUIPMENT IS DUE, WE'RE GOING TO HAVE ABOUT AN $800,000 A YEAR.

SO WE WORK VERY CLOSELY WITH THE FINANCE DEPARTMENT TO KIND OF PROJECT THOSE NUMBERS WELL IN ADVANCE.

AND THEN WE ACTUALLY DO PUT THE IT REPLACEMENT PROGRAM THROUGH AS A DECISION PACKAGE AT EVERY SINGLE BUDGET CYCLE.

SO I'VE ALREADY DONE IT FOR THIS UPCOMING YEAR.

SO WHEN WE PRESENT THE BUDGET IN MAY, YOU ACTUALLY GET TO SEE A BREAKDOWN OF EXACTLY WHAT'S DUE FOR REPLACEMENT NEXT YEAR.

AND COUNCIL ACTUALLY GRANTED DECISION PACKAGE BASED OFF OF THAT PREDICTION.

AS I MENTIONED, THE REPLACEMENT CYCLES ARE PRETTY MUCH KNOWN WHEN WE BUY THE HARDWARE OR WHEN WE ACQUIRE THE HARDWARE.

SOMETIMES IT MIGHT BE A SINGLE PIECE OF EQUIPMENT THAT CAN BE UP TO PROBABLY OUR MOST EXPENSIVE THINGS, PROBABLY ABOUT 250 TO $300,000.

OR IT COULD BE A COLLECTION OF ASSETS IN THE CITY THAT HAS SIGNIFICANT VALUE.

SO LIKE WHEN WE WHEN WE GO OUT TO PURCHASE THE COMPUTERS FOR THE CITY, WHICH IS ABOUT ONCE EVERY FOUR YEARS, YOU KNOW, THAT CAN BE UPWARDS OF 450, $500,000 WHEN WE DO THAT.

AND THE OTHER THING THAT I'LL MENTION IS THAT THE FINANCIAL PROJECTIONS THAT WE ARE DOING, WHILE IT'S VERY CHALLENGING FOR SOMEBODY IN IT WITH HOW RAPIDLY OUR ENVIRONMENT CHANGES AND HOW COSTS GO UP AND DOWN YEAR OVER YEAR, WE DO ACTUALLY ATTEMPT TO PROJECT OUT WHAT WE ARE GOING TO BE PURCHASING FOR TEN YEARS OUT.

AND THAT IS ABOUT THE MAXIMUM LIFE CYCLE WOULD EVER HAVE ON A PIECE OF IT EQUIPMENT, AND IT ALLOWS US TO AT LEAST KIND OF GET A GOOD GRASP, AT LEAST FINANCIALLY, SO THAT THE FINANCE TEAM HERE CAN PREDICT, YOU KNOW, AT LEAST A FEW YEARS IN ADVANCE WHAT'S GOING TO HIT THEM.

SO IT'S FAIRLY, FAIRLY SIMILAR TO WHAT WE DO WITH THE VEHICLE REPLACEMENT FUNDS.

YOU KNOW, FIRE TRUCKS LAST TEN YEARS WHERE A POLICE CAR MIGHT JUST BE A COUPLE VERY SIMILAR FOR THE IT EQUIPMENT AS WELL.

SO THE OTHER BIG BUCKET OF FUNDING THAT WE HAVE IN IT IS OF COURSE OUR CORE BUDGET.

YOU'RE GOING TO SEE SOME NUMBERS UP IN THE CORNER. THESE ARE IN THOUSANDS OF DOLLARS.

AND THESE ARE ACTUALLY LAST YEAR'S NUMBERS. THIS YEAR'S ARE VERY, VERY SIMILAR.

AND WE ARE IN FACT QUITE JUST A HAIR LESS EXPENSIVE IN THIS UPCOMING FISCAL YEAR THAN WE WERE IN THE CURRENT FISCAL YEAR.

SO OUR NEARLY OUR BIGGEST EXPENSE ARE OUR EMPLOYEES.

WE'RE A PRETTY SMALL TEAM. THERE ARE ONLY EIGHT STAFF.

THESE ARE THIS NUMBER INCLUDES BOTH THE SALARY AND BENEFIT FOR ALL OF IT.

WE ALL LIVE HERE IN CITY HALL, AND WE RUN AROUND TO ALL THE DIFFERENT SITES THAT WE SUPPORT.

OVERHEAD FOR US. WE PAY IT JUST LIKE EVERYBODY ELSE.

WE PAY FOR OUR OFFICE SPACE. WE DO HAVE A VEHICLE ASSIGNED TO THE IT TEAM THAT IS INCLUDED IN THERE AS WELL.

WE PAY PUBLIC WORKS FOR OUR OFFICE SPACE. WE EVEN PAY OUR INTO OUR OWN IT FUND FOR OUR COMPUTERS AND THE EQUIPMENT THAT OUR TEAM USES TO ACCOMPLISH OUR JOBS AS WELL.

[01:40:01]

BUT THIS ALSO DOES INCLUDE A DECENT HANDFUL OF SOFTWARE LICENSES.

TYPICALLY, THESE ARE GOING TO BE THE SMALLER THINGS THAT WE PURCHASE SMALLER QUANTITIES LICENSES THAT MIGHT BE UNIQUE TO A PARTICULAR DEPARTMENT OR A PARTICULAR PERSON.

IT IS ALSO WHERE INDIVIDUAL HARDWARE COMPONENTS MIGHT COME FROM.

IF 1 OR 2 PEOPLE NEED AN IPAD, IT IS PROBABLY GOING TO COME OUT OF OUR SUPPLIES BUDGET AS OPPOSED TO ONE OF THE LARGER ACCOUNTS THAT WE HAVE.

WE ALSO DO PAY ALL OF THE COMMUNICATIONS RELATED TELEPHONE BILLS AND COMMUNICATION BILLS FOR THE CITY.

SO THESE ARE THINGS LIKE THE ACTUAL TELEPHONE CIRCUITS THAT WE STILL HAVE TO MAINTAIN FOR THINGS LIKE ELEVATORS AND FIRE PANELS, SECURITY ALARMS AROUND THE CITY. THIS DOES INCLUDE THE CELLULAR SERVICE FOR THE PHONES WE HAVE AROUND THE CITY, AND THE TABLETS THAT WE HAVE AROUND THE CITY. THERE ARE ABOUT 250 OF THOSE SPREAD ACROSS THE DEPARTMENTS.

MDC. I'LL MENTION ON HERE THAT STANDS FOR MOBILE DATA COMPUTER.

THESE ARE THE COMPUTERS INSTALLED IN THE POLICE CARS AND IN THE FIRE TRUCKS.

SCADA. WELL, WHILE IT'S NOT HUGE. SCADA IS A TYPE OF INFORMATION SYSTEM WHICH IS USED TO SUPERVISE THINGS LIKE, YOU KNOW, POWER PLANTS. IN OUR CASE, IT'S PUMPING PLANTS FOR WASTEWATER AND RAINWATER THAT ARE LOCATED AROUND THE CITY.

BUT THOSE ALL HAVE CELLULAR SERVICE AND EQUIPMENT ASSOCIATED WITH THEM.

AND KIND OF THE BIGGEST THING THAT IS IN THIS BUCKET IS THAT THE CITY ACTUALLY MAINTAINS A DARK FIBER NETWORK.

WE ARE THE ONLY PEOPLE THAT ARE ON IT, AND THIS IS WHAT WE USE TO CONNECT OUR 17 FACILITIES ALL BACK TO CITY HALL.

AND THIS IS HOW WE GET NETWORK TO THESE LOCATIONS.

THIS IS HOW WE GET TELEPHONE, THIS IS HOW WE GET INTERNET, WI-FI THAT IS ALL RUN OVER OUR DARK FIBER NETWORK.

OUR DARK FIBER NETWORK IS PROVIDED BY CHARTER SPECTRUM.

SO THAT'S A PRETTY SIGNIFICANT MONTHLY EXPENSE THERE.

BUT IT'S VERY FAST, INCREDIBLY RELIABLE, AND IT IS EXCLUSIVELY OURS.

SO WE DON'T HAVE TO WORRY SO MUCH ABOUT CYBERSECURITY ON IT, BECAUSE WE KNOW THE ONLY PEOPLE THAT ARE EVER GOING TO BE ON THAT NETWORK ARE OUR OWN EQUIPMENT AND COMPUTERS. ONE THING THAT WE DO TO KIND OF SPREAD THE BURDEN OF LARGE EXPENSES OVER THE YEARS, OR WE'VE GOT A FEW CATEGORIES OF EQUIPMENT WHERE WE DO REPLACE THEM ON A REGULAR INTERVAL, BUT WE DO WIND UP LEASING THE EQUIPMENT. SO THE BULK OF OUR COMPUTERS AND LAPTOPS ARE ON A FIVE YEAR LEASE.

THE SERVERS ARE ON A FIVE YEAR LEASE. COPIERS AND PRINTERS ARE ALSO ON A FIVE YEAR LEASE.

SO WHILE THAT WOULD NORMALLY CREATE A SPIKE IN OUR FUNDINGS THAT WE WOULD NEED TO HAVE YEAR OVER YEAR, WE DO A LEASE PROGRAM SO THAT WE CAN GET THOSE AT A LITTLE MORE CONSISTENT RATE.

IT'S VERY, VERY MINIMAL ON AN INCREASE IN COST BECAUSE WE'RE GOVERNMENT, THEY TEND NOT TO GOUGE US GOING LEASE OVER PURCHASE.

SO THAT REALLY HELPS US SMOOTH OUR BUDGET QUITE A LOT.

MAINTENANCE COSTS ARE A PRETTY BIG LINE ITEM FOR US.

THE SOFTWARE WORLD THESE DAYS, THERE'S A BUCKET OF THINGS THAT IS EVER SHRINKING, OF WHERE WE, QUOTE UNQUOTE, OWN THE LICENSE. AND WHAT WE'RE PAYING FOR ON AN ANNUAL BASIS IS WHAT THEY CALL MAINTENANCE. SO SUPPORT SOFTWARE UPGRADES, SOMEBODY TO CALL IF SOMETHING GOES WRONG. THOSE ARE TYPICALLY LOWER COST AGREEMENTS.

OUR MAINTENANCE COSTS ALSO DO INCLUDE SOME PHYSICAL MAINTENANCE. SO WE DO HAVE DATA CENTERS. WE DO HAVE CABLING INFRASTRUCTURE, THINGS THAT NEED TO MAINTAIN, THINGS THAT GET OLD, THAT NEED TO BE REPLACED.

AND THAT IS INCLUDED IN OUR MAINTENANCE BUDGET. AND THEN MOVING ON TO CONTRACTS.

THIS IS ACTUALLY OUR LARGEST ACCOUNT THAT WE HAVE IN IT.

THESE ARE WHAT YOU MAY SEE COINED AS SAAS AGREEMENTS OR THE CITY'S MICROSOFT AGREEMENT FALLS INTO THIS CATEGORY.

MICROSOFT ALONE IS ABOUT $300,000 A YEAR FOR OUR WORD EXCEL OFFICE.

MICROSOFT WINDOWS LICENSING FOR THE CITY. TYLER ERP IS OUR PROBABLY OUR LARGEST APPLICATION THAT WE USE ACROSS ALL DEPARTMENTS.

IT IS OUR GENERAL LEDGER FOR THE CITY AS WELL AS CASHIERING PERMITTING LICENSING.

MANY, MANY FUNCTIONS OPERATE OUT OF THE TYLER ERP.

AND THEN I'LL MENTION FORTIGATE. I'M GOING TO GO INTO A LITTLE BIT DEEPER ON CYBERSECURITY IN A FEW SLIDES HERE.

BUT OUR FORTIGATE FIREWALLS ARE ALSO ONE OF THE LARGER EXPENSES ON THEIR THEY ARE INCREDIBLY SOPHISTICATED.

YOU KNOW, WITH THE CYBER THREATS THAT ARE OUT THERE, THIS TECHNOLOGY HAS GROWN AND GROWN AND GROWN OVER THE LAST TEN YEARS.

AND THERE IS A PRICE TAG THAT COMES ALONG WITH THAT.

ONE THING I DID WANT TO MENTION IS WE WE HAVE PARTNERED WITH A NUMBER OF ORGANIZATIONS.

AS I MENTIONED, WE'RE A PRETTY SMALL TEAM. THERE ARE ONLY EIGHT POSITIONS IN IT.

AND WE DO HAVE A HANDFUL OF REALLY STRONG PARTNER COMPANIES THAT ASSIST US WITH A LOT OF OUR TECHNOLOGY NEEDS.

ONE OF THE BIG ONES IS CALLED TECH REFRESH. TECH REFRESH IS OUT OF ORANGE COUNTY AND THEY ARE A VERY, VERY STRONG CYBERSECURITY FIRM. THEY DO PROVIDE OUR FIREWALLS.

THEY PROVIDE A INDIVIDUALS FOR US TO CALL IF WE HAVE AN ISSUE WITH THE FIREWALLS.

WE'VE GOT AN ON CALL AGREEMENT WITH THEM. IF IT'S 3:00 IN THE MORNING AND ONE OF US HAS TO RUN IN AND WE CAN'T FIGURE OUT WHAT'S WRONG, WE CAN PICK UP THE PHONE AND THEY'LL COME RUNNING TOO.

SO THEY'RE ONE OF OUR STRONGER PARTNERS AND MOST IMPORTANT PARTNERS.

A LITTLE MORE RECENTLY, WE USED TO RUN OUR OWN PRINT SHOP IN THE BASEMENT OF CITY HALL, AND WE HAVE MORE RECENTLY SWITCHED OVER TO OUTSOURCING THE VAST

[01:45:09]

SO THAT IS ONE OF OUR BIGGER CHANGES THAT WE'VE MADE IN THE LAST COUPLE OF YEARS AND HAS BEEN QUITE SUCCESSFUL.

ANOTHER IS A COMPANY THAT IS BEHIND THAT GRAY WALL RIGHT THERE, IS WE HAVE AN INDIVIDUAL FROM A COMPANY CALLED PEGASUS STUDIOS WHO HAS BEEN HELPING US RUNNING OUR COUNCIL MEETINGS AND COMMISSION MEETINGS FOR A LITTLE BIT OVER A YEAR NOW.

THAT USED TO BE SPREAD ACROSS A NUMBER OF IN-HOUSE FOLKS THAT WOULD KIND OF KEEP THE ROOM MAINTAINED AND BOOTED UP IN THE MORNING.

AND THEN ANOTHER INDIVIDUAL WHO HAD BEEN IN THE BOOTH AT NIGHT RUNNING THE MEETINGS.

AFTER MANY, MANY YEARS, THAT GENTLEMAN RETIRED, AND WE CAME TO THE CONCLUSION THAT WE WERE SPENDING SO MANY STAFF HOURS JUST GETTING THE ROOM RUNNING ON A CONSISTENT BASIS. THERE WAS ACTUALLY MORE COST EFFECTIVE TO BRING A PARTNER ON TO HELP US RUN THESE MEETINGS.

AND THEY DO IT FOR A NUMBER OF LOCAL CITIES. AND THAT HAS BEEN A RESOUNDING SUCCESS SINCE, SINCE WE MADE THAT CHANGE A LITTLE OVER A YEAR AGO. ANOTHER IMPORTANT CONTRACT THAT WE HAVE IS A COMPANY CALLED KEEP IT SIMPLE.

THEY WELL, WE DO HAVE SOME IN-HOUSE RESOURCES THAT ARE DEDICATED TO NETWORK AND SERVER ADMINISTRATION.

KIS IS ALSO ON BOARD. IF WE COME ACROSS SOMETHING THAT'S TOO COMPLEX OR SOMETHING THAT WE MIGHT NOT DO, BUT ONCE OR TWICE A YEAR, WE'LL TYPICALLY BRING THEM ON TO LOOK OVER OUR SHOULDER, OR WE WATCH THEM SO THAT IF YOU KNOW, WE'RE NOT MAKING LARGE, SWEEPING, IMPORTANT CHANGES ON THE NETWORK WITHOUT SOMEBODY WHO DOES IT MORE FREQUENTLY THAN WE DO THEY'RE A VERY STRONG PARTNER THAT I'VE ACTUALLY WORKED WITH AT A COUPLE OF DIFFERENT ORGANIZATIONS TO HELP KEEP THINGS SECURE AND EFFICIENT.

SO THAT'S KIND OF OUR BUDGET IN A NUTSHELL. I WANT TO TALK A LITTLE BIT ABOUT THE SERVICES WE PROVIDE.

THE NUMBERS ARE PRETTY INCREDIBLE. WE DO QUITE A LOT WITH VERY LITTLE.

THERE'S 733 USER ACCOUNTS IN OUR DIRECTORY AS OF LAST WEEK.

WE SUPPORT ABOUT 650 DESKTOP AND LAPTOP COMPUTERS.

THERE'S ABOUT 850 MONITORS ACROSS THE CITY. COPIERS AND PRINTERS ARE AROUND 8075 SERVERS AND SHRINKING.

WE ARE ALSO AT AROUND 75 EMERGENCY VEHICLES AND COUNTING, AND WE GET TO DO SOME PRETTY COOL STUFF.

WE ARE CURRENTLY IN THE PROCESS OF SPECKING OUT HOW TO GET THE THREE BOATS AT THE HARBOR PATROL FACILITY OUTFITTED WITH MDCS, JUST LIKE THE REST OF THE FLEET, SO THAT'S BEEN A FUN PROJECT.

ABOUT 500 TELEPHONES, 50 OF THOSE LOVELY CALL ATTENDANTS.

EVERYONE LOVES TO DIAL THE NUMBERS AND GET TO THEIR DEPARTMENT THROUGH.

AND THEN WE'VE GOT A NUMBER OF SPECIAL CIRCUITS.

I'VE ALREADY MENTIONED THE SMART PHONES AND TABLETS, AND WE DO AVERAGE OVER 200 SERVICE REQUESTS PER MONTH TO THE IT SHOP.

I DON'T WANT TO GO INTO TOO MUCH DETAIL ON THE INFRASTRUCTURE, BUT WE DO SUPPORT THE MYRIAD OF NETWORK SWITCHES, FIREWALLS, NETWORKS, WIRELESS ACCESS POINTS. AS I MENTIONED, THERE'S 17 FACILITIES THAT ARE ON OUR DARK FIBER RING.

SO THESE ARE ALL FULL SERVICE FACILITIES FROM THE WI-FI IN THE BUILDING TO THE TELEPHONES AND COMPUTERS ON PEOPLE'S DESKS.

THOSE ARE ALL PROVIDED FOR AND MAINTAINED BY IT.

WE DO HAVE A NUMBER OF OUTDOOR NETWORKS AS WELL.

WE HAVE OUTDOOR WI-FI AT THE SEASIDE LAGOON SITE.

WE HAVE OUTDOOR WI-FI ON THE ENTIRE TRIANGULAR SHAPED PIER, AS WELL AS THE INTERNATIONAL BOARDWALK, AND WE ARE IN THE PROCESS OF BUILDING WI-FI FOR THE PALLET SHELTER UP THE KINGSDALE TRANSIT CENTER.

ON THE APPLICATION SIDE, THERE ARE ABOUT 250 TOTAL.

ABOUT 100 OF THOSE ARE ASSOCIATED WITH THE POLICE DEPARTMENT, AND I MENTIONED ALL THE BIG ONES ALREADY.

MICROSOFT FOR EMAIL AND COLLABORATION TYLER MUNIS FOR ERP, OUR LASERFICHE CONTENT MANAGEMENT PLATFORM HAS ABOUT 3 MILLION DOCUMENTS IN IT NOW AND COUNTING. WE DO PROVIDE THE DIGITAL SIGNAGE FOR THE CITY, AS WELL AS ACCESS REDONDO AND THE REDONDO.ORG, WHICH IS ALSO NOW REDONDO.GOV AS WELL. WEBSITE AND EMAIL ADDRESSES ARE SUPPORTED BY OUR TEAM.

SO OUR CURRENT PROJECTS, YOU KNOW, THEY'RE ALL OVER THE MAP.

YOU KNOW, SOME OF OUR PROJECTS MIGHT HAVE US REPLACING SPECIFIC PIECES OF EQUIPMENT THAT ARE DUE.

OTHERS ARE ANALYZING THINGS LIKE, YOU KNOW, WHAT ARE WE GOING TO DO LONG TERM FOR BRINGING ARTIFICIAL INTELLIGENCE TO THE CITY? OR WHAT ARE WE GOING TO DO TO, YOU KNOW, GET RID OF ALL THE PAPER THAT IS RUNNING AROUND THE HR OFFICES.

SO YOU GET TO WORK ON A VARIETY OF THINGS IS REALLY WHAT KEEPS IT INTERESTING FOR US IS THAT, YOU KNOW, EVERY DAY IT'S SOMETHING NEW. WE MIGHT BE WORKING ON A FIRE TRUCK TODAY.

YOU KNOW, WE MIGHT BE, YOU KNOW, HELPING STEPHANIE ONBOARD A NEW APPLICATION FOR HER TEAM TOMORROW.

IT'S A VERY DIVERSE SET OF THINGS THAT WE DO ON A DAY TO DAY BASIS.

ONE THING I DO WANT TO MENTION IS THAT WE ARE IN THE PROCESS OF REPLACING OUR 911 EQUIPMENT.

[01:50:05]

AND THAT IS PROBABLY OUR MOST IMPORTANT ROOM IN THE CITY.

AND WE ARE TIED AT THE HIP TO THAT DISPATCH STAFF.

AND THERE ARE SOME PRETTY INCREDIBLE PROJECTS THAT GO ON THERE.

THE 911 PSAP IS SOMETHING THAT WE'RE GOING TO BE, WE'RE EITHER GOING TO BE THE FIRST OR SECOND ON THIS LATEST, GREATEST VERSION OF THE 911 CENTER. WE'VE BEEN WORKING VERY CLOSELY WITH OUR PARTNERS OVER AT FRONTIER COMMUNICATIONS ON THAT THE LAST COUPLE OF WEEKS.

SO WHAT'S YOUR RESPONSIBILITY ON THE 911 PSAP? IS IT THE TELEPHONY OR ARE YOU MORE ON THE CAD RMS SIDE? SO THE 911 PSAP SYSTEM IS ITS OWN THING. SO THE CAL OES IS WHAT PROVIDES FUNDING FOR THE 911 PSAPS ALL AROUND THE STATE.

THERE ARE ABOUT 100 OF THEM. AND EFFECTIVELY THEY ARE RESPONSIBLE FOR THE DIAL TONE.

AND WHAT HAPPENS WHEN SOMEBODY DIALS 911. THERE'S A SET OF SERVERS THERE.

THERE ARE CIRCUITS THAT ARE BROUGHT IN THAT ARE PAID FOR AND MAINTAINED EXPLICITLY BY CAL OES FOR THAT.

AND THEN EACH STATION HAS A COMPUTER THAT IS ASSOCIATED JUST WITH 911.

HOWEVER, THAT PHONE SYSTEM ALSO DOES INTERFACE WITH THE CITY'S PHONE SYSTEM, WHICH IS ON OUR SIDE OF THE WALL ON THE MAINTENANCE SIDE.

SO THAT IS JUST ABOUT THE ONLY 24 OVER SEVEN, 365 MAN FACILITY.

SO IF SOMEBODY CALLS THE NON-EMERGENCY NUMBER, IF SOMETHING NEEDS TO BE TRANSFERRED TO ANOTHER DEPARTMENT OR SOMEBODY CALLS AND NEEDS TO BE TRANSFERRED STILL WITHIN PD, BUT, YOU KNOW, IT'S AT SOMEBODY'S DESK, THEY NEED TO TALK TO A CAPTAIN OR THEY NEED TO TALK TO RECORDS.

THAT IS ALL INTERFACING AND GOING THROUGH OUR SYSTEM.

NOW THE DISPATCHERS THEMSELVES HAVE YEAH, THEY PROBABLY ARE.

THEY PROBABLY ARE THE MOST POWERFUL COMPUTERS IN THE CITY.

THEY ARE FOUR MONITORS AND THEY HAVE OUR POLICE CAD SYSTEM UP THERE.

THEY'VE GOT MAPS WHERE EACH OF THE OFFICERS ARE.

THEY HAVE ACCESS INTO THE RADIO ENVIRONMENT. THEY'VE GOT TOOLS THAT POP UP.

IF SOMEBODY CALLS IN WITH A CELL PHONE, WE KNOW PRECISELY WHERE THAT PERSON IS STANDING.

SO IT IS SUPPORTING THAT ENTIRE SYSTEM. SO ANYTHING EXCEPT FOR THE ACTUAL TELEPHONE WHERE THE 911 CALLS IN ON ARE, IS IN ITS PURVIEW. AND THEN WE DO SUPPORT THE NETWORK FOR IT ALL.

SO THERE IS A NETWORK CORE HERE IN CITY HALL, AND THEN A DUPLICATE NETWORK CORE OVER IN THE 911 CENTER.

THAT IS OUR RESPONSIBILITY. SO, YOU KNOW, WHILE IF ALL OF OUR GEAR WENT DOWN, THE 911 PHONES WOULD RING AND SOMEONE WOULD ANSWER, THEY WOULDN'T BE ABLE TO DO MUCH. THEY WOULDN'T BE ABLE TO CREATE A TICKET. BASICALLY ALL THEY COULD DO IS HOP ON THE RADIO AND GET, YOU KNOW, DISPATCH SOMEBODY PHYSICALLY WITH THE RADIO, BUT THEY WOULDN'T HAVE A LOG OF IT. THEY WOULDN'T HAVE A RECORDING OF IT, AND THEY'D BE PRETTY BLIND AS TO WHERE PEOPLE ARE AND WHAT IS GOING ON? WELL, THE NEW 911 SYSTEM, NEXT GEN 911 ALLOWS FOR AUTOMATIC FAILOVER TO OTHER LOCATIONS.

WHAT'S YOUR FAILOVER LOCATION? IT DOES SO WITH THE CURRENT LEGACY VERSION OF THE 911 SYSTEM.

WE CAN FAILOVER TO RCC, WHICH IS A CONSORTIUM OF SEVERAL CITIES THAT EFFECTIVELY SURROUND US.

WE YOU KNOW, THEY CAN CLICK A BUTTON AND FAILOVER TO LOTS OF PLACES.

LOCAL HIGHWAY PATROL WOULD PROBABLY BE NEXT IN LINE.

WE CAN FAILOVER TO LA CITY. THAT'S ACTUALLY PRETTY OPEN.

SO WHEN I MENTIONED THAT WE'RE GOING TO BE ONE OF THE FIRST COUPLE, WE ARE GOING TO BE ONE OF THE FIRST COUPLE CITIES IS ACTUALLY GOING ON TO THEIR VOICE OVER IP 911 SYSTEM, AND THAT WILL EFFECTIVELY ALLOW US TO TRANSFER SERVICES ANYWHERE IN THE STATE.

AND AS YOU MENTIONED, THAT WILL BE AUTOMATIC FAILOVER. IF WE LOST SOMETHING LIKE AN INTERNET CIRCUIT OR FOR WHATEVER REASON OR, YOU KNOW, WE LOST POWER AND EMERGENCY POWER DIDN'T COME ON.

THAT IS ONE OF THE THE BIG, BIG PLUSES THERE.

ONE OF THE OTHER BIG PLUSES IS BECAUSE OUR PHONE SYSTEM IS MODERN, OUR PHONE SYSTEM IS VOICE OVER IP.

YOU KNOW, ALL THE SERVERS ARE IN THE CLOUD. BECAUSE OF THAT, WE HAVE TO MAINTAIN SOME PIECES OF HARDWARE PHYSICALLY ON SITE TO INTEGRATE THE PHONE SYSTEMS. AND WITH 911 GOING VOIP AND GOING CLOUD, WE CAN ELIMINATE THOSE PIECES OF HARDWARE, WHICH ARE WHILE THERE'S A LITTLE BIT OF REDUNDANCY THERE, THEY'RE KIND OF THE THING THAT I WORRY THE MOST ABOUT, LIKE HARDWARE WISE DESIGN WISE, BECAUSE IF WE LOSE 1 OR 2 OF THOSE APPLIANCES, WE ARE UNABLE TO TRANSFER PHONES AND WE'RE UNABLE TO ANSWER THE NON-EMERGENCY LINE ON THE 911 SYSTEM. SO REALLY LOOKING FORWARD TO THAT PROJECT COMING TOGETHER.

THANK YOU. SO I WANTED TO KEEP A PRETTY HIGH LEVEL ON CYBERSECURITY, BUT I KNOW THAT WAS OF INTEREST OF THE GROUP. I HAVE A SIMPLE A SIMPLE DEFINITION HERE.

BUT, YOU KNOW, IT MEANS A LOT. CYBERSECURITY IS YOU KNOW, IT'S EVERYWHERE.

IT IS NOT JUST THE TECHNOLOGY THAT IT, YOU KNOW, PUTS IN PLACES.

I VIEW IT AS A COMBINATION OF THE PEOPLE THAT WE WORK WITH AND THE PEOPLE THAT WORK WITH OUR SYSTEMS, THE PROCESSES WHICH WE FOLLOW WHEN WE'RE USING THOSE SYSTEMS AND THE ACTUAL TECHNOLOGY PIECES.

AND THEN KIND OF THE BY THE BOOK DEFINITION OF CYBERSECURITY REFERS TO CONFIDENTIALITY, INTEGRITY AND AVAILABILITY.

SO CONFIDENTIALITY IS TYPICALLY WHAT HAPPENS AND MAKES THE NEWS.

THIS IS WHEN YOU HAVE SOMETHING CONFIDENTIAL AND THAT RECORD GETS EXPOSED.

THAT IS A BREACH OF THE CONFIDENTIALITY A BREACH OF THE INTEGRITY WOULD BE YOU HAVE A RECORD THAT STORE IN YOUR SYSTEMS,

[01:55:07]

SO YOU ALSO SEE RANSOMWARE VERY FREQUENTLY IN THE NEWS.

THAT IS A TYPE OF ATTACK WHICH GETS YOUR INFORMATION AND RENDERS IT SO YOU CAN NO LONGER READ IT.

IT'S STILL THERE. IT COULD POTENTIALLY BE PUT BACK TO THE STATE THAT IT USED TO BE IN, BUT ITS INTEGRITY HAS BEEN DESTROYED.

AND THUS YOU'VE EITHER GOT TO DO SOMETHING TO GET THERE OR RESTORE IT FROM AN OLDER COPY.

AND THEN AVAILABILITY IS THE SIMPLE IT'S NOT THERE ANYMORE.

I CAN'T GET TO IT. IT'S BROKEN I CAN'T TURN IT ON.

I CAN'T CONNECT TO IT. SO THOSE ARE KIND OF THE THREE THINGS THAT WE'RE TRYING TO PRESERVE WHEN WE TALK ABOUT CYBERSECURITY. YOU KNOW, LAYER UPON LAYER OF SAFEGUARDS. DOZENS AND DOZENS OF DOZENS OF PEOPLE, PIECES OF TECHNOLOGY ARE INVOLVED HERE.

AND IT DOES HELP US ACHIEVE COMPLIANCE WITH THE VARIOUS THINGS WE HAVE TO COMPLY WITH.

THIS IS A VERY SHORT LIST OF THEM. SEE THIS IS THE CRIMINAL JUSTICE INFORMATION SYSTEMS REQUIREMENTS, CREDIT CARD REQUIREMENTS, MEDICAL INFORMATION.

CALIFORNIA SENATE BILL 1386 DICTATES QUITE A LOT OF WHAT WE DO.

SO THERE ARE A LOT OF THINGS WE HAVE TO REMEMBER AS WE ARE BUILDING SYSTEMS. SO FOR US WE, WE FOCUS PRETTY STRONG ON KEEPING OUR STAFF AWARE OF WHAT'S GOING ON AND WHAT TO BE AWARE OF.

LITERALLY ON YOUR FIRST DAY WHEN YOU WHEN YOU START WORKING HERE, YOU ARE ACKNOWLEDGING THE IT SECURITY POLICIES.

YOU ACTUALLY SIGNED THEM. AND I GET A COPY BEFORE YOU EVEN GET AN ACCOUNT INTO OUR SYSTEM.

WE DO QUARTERLY TRAINING FOR ALL EMPLOYEES. THERE'S USUALLY 1 OR 2 15 MINUTE TRAININGS AS A REFRESHER THAT EVERYBODY IS ASSIGNED EACH QUARTER.

WE DO ALSO DO MONTHLY PHISHING EXERCISES, WHICH ARE AS SCARY AS THEY ARE FUN.

THE PHISHING EXERCISES KNOW WHO YOU ARE, KNOW WHAT YOU DO, AND KNOW HOW YOU HAVE DONE ON PREVIOUS EXERCISES, AND WILL TAILOR THE FAKE EMAILS TO YOU BASED ON THOSE THINGS.

I GET, I HAVE FAILED SEVERAL OF THESE. I, I PERSONALLY GET THE SCARIEST FAKE EMAILS YOU'VE EVER SEEN AND THEY ARE NEAR INDISTINGUISHABLE FROM REAL ONES. WHO ARE YOU USING FOR THIS? WE'RE USING A PRODUCT CALLED KNOWBE4.

OKAY. AND THAT COMPANY IS DOING BOTH THE QUARTERLY CYBERSECURITY TRAINING AS WELL AS THE MOCK PHISHING EXERCISES.

WE DO DEPARTMENT SPECIFIC TRAINING. CERTAIN DEPARTMENTS DEAL WITH MEDICAL INFORMATION, DEAL WITH ULTRA SENSITIVE HOUSING, INFORMATION ABOUT PEOPLE THAT ARE RECEIVING FUNDS FROM THE CITY.

SO WE DO SOME DEPARTMENT SPECIFIC TRAINING FOR PEOPLE THAT ARE HANDLING VERY IMPORTANT DATA.

AND THEN WE DO REMIND FOLKS ABOUT USER ACCESS CONTROL.

AND THIS KIND OF BLENDS INTO THE PROCESSES AS WELL AS THAT WE REALLY TAKE TO HEART.

THE CONCEPT OF NO EMPLOYEE HAS MORE PERMISSION THAN THEY TRULY NEED TO ACCOMPLISH THEIR JOB.

AND WE ALSO DO REGULAR REVIEWS TO ENSURE WHAT I CALL SEPARATION OF DUTIES.

SO LIKE IN THE FINANCIAL SYSTEM, YOU WANT TO MAKE SURE THAT NO ONE PERSON CAN CUT A CHECK AND ALSO DELETE THAT CHECK OFF THE GENERAL LEDGER.

SO WE'RE REALLY TAKING A LOOK AT SOME OF THOSE REALLY IMPORTANT ROLES ABOUT WHO CAN DO WHAT, AND MAKING SURE THAT THERE'S NO OVERLAPS AS AS YOU KNOW, THERE'S NO ACCESS PERMISSION GIVEN TO INDIVIDUAL PEOPLE ON THE PROCESSES SIDE.

WE'VE OF COURSE, GOT OUR PILE OF POLICIES. JUST LIKE ON THE FINANCIAL SIDE, WE'RE ANNUAL AUDITS ARE COMPLETED.

WE ALSO DO ANNUAL AUDITS INSIDE OF IT. THESE ARE TYPICALLY DONE BY THIRD PARTY ORGANIZATIONS.

THEY'RE WHILE WE DO WE DO RANDOM SELF CHECKS OF CERTAIN THINGS ON OUR LIST OF THINGS THAT WE WANT TO ACCOMPLISH.

WE DO HAVE THIRD PARTY AUDITORS COME IN ONCE A YEAR AND DO AN OVERVIEW OF OUR SYSTEMS. AND I DO LIKE TO ROTATE WHO THAT IS. SO YOU'RE NOT JUST GETTING THE SAME AUDIT OVER AND OVER AGAIN.

WE DO HAVE TOOLS IN PLACE THAT HELP US DO MONITORING AS WELL, SPECIFIC TOOLS THAT MONITOR AVAILABILITY OF SYSTEMS, SPECIFIC TOOLS THAT CAN TRY AND DO A LITTLE BIT OF WHITE HAT HACKING INTO OUR SYSTEM, SEE IF THEY CAN FIND ANY VULNERABILITIES.

AND THEN ALSO ON THE ON THE NON-TECHNICAL SIDE, ONE THING THAT WE DO AS ANY DEPARTMENT IS LOOKING TO ONBOARD NEW TECHNOLOGY IS I'M PART OF THE PURCHASING PROCESS AND WE TAKE A LOOK AT THE SYSTEM WE DO A REVIEW OF, ESPECIALLY IF THEY ARE GOING TO BE STORING OUR INFORMATION IN A SYSTEM ELSEWHERE.

WE DO A REVIEW OF HOW THEY'RE STORING IT, WHERE THEY'RE STORING IT, AND WHAT COUNTRIES THEY'RE STORING IT IN. DO THEY BACKGROUND CHECK THEIR EMPLOYEES? A LOT OF THE SAME THINGS THAT WE DO, AND WE BRING PEOPLE ON BOARD TO MAKE SURE THAT THEY'RE GOING TO DO A GOOD JOB HANDLING OUR DATA.

WE DO THAT WITH OUR VENDORS. WE'RE BRINGING ON BOARD. THEN THE BIG ONE.

SO THE TECHNOLOGY CONTROLS THAT THE CITY HAS ARE, YOU KNOW, MANY, MANY, MANY I'M THE FORMER CYBERSECURITY OFFICER FOR SAN JOSE STATE UNIVERSITY. AND I WAS REALLY DRILLED INTO MY HEAD.

THE CIS CENTER FOR INFORMATION SECURITY 20 CRITICAL CONTROLS IS KIND OF WHAT I USE AS A AS A FRAMEWORK.

AND IT GOES THROUGH AND TALKS ABOUT, YOU KNOW, EVERYTHING FROM ASSET MANAGEMENT TO HAVING ACCURATE INVENTORIES TO CONTROLLING WHAT

[02:00:03]

THESE ALL ADD UP TO A MORE SECURE ENVIRONMENT.

WE'VE IMPLEMENTED ENCRYPTION TOOLS, SO IF SOMEBODY LOSES A LAPTOP, EVEN IF SOMEBODY WERE TO GO ON THE SERVER AND GRAB A HARD DRIVE OUT OF A SERVER AND RUN.

THOSE ARE ENCRYPTED AS WELL. SO IT WOULD BE SO HARD TO GET DATA OFF OF THOSE ASSETS THAT IT WOULD EFFECTIVELY NOT BE A LOSS FOR US.

I TALKED A LITTLE BIT ABOUT ACCESS CONTROL. WE'RE USING VARIOUS TOOLS FOR MAKING SURE THAT OUR SYSTEMS ARE CONFIGURED SECURELY AND CONSISTENTLY.

WE'VE GOT TOOLS IN PLACE TO MAKE SURE THAT WE'RE ALWAYS INSTALLING PATCHES. WE'VE GOT TOOLS IN PLACE TO MAKE SURE THAT OUR NETWORK IS BOTH PREVENTING MALICIOUS ACTIVITY FROM HAPPENING, BUT ALSO MONITORING WHO'S TRYING TO CONNECT TO US.

EMAIL PROTECTION. WE'VE GOT ANTIVIRUS PROTECTION, JUST LIKE FOLKS HAVE AT HOME.

I WANT TO TALK A LITTLE BIT ABOUT DATA RECOVERY.

THIS IS SOMETHING THAT WE'VE RECENTLY MADE A PRETTY SIGNIFICANT INVESTMENT IN.

WE ARE NOW USING A PRODUCT CALLED RUBRIK, WHICH TAKES A COPY OF EVERY SINGLE SERVER THAT WE HAVE IN THE CITY HALL DATA CENTER AND REPLICATES IT IN THE DATA CENTER OF THE POLICE DEPARTMENT, AND VICE VERSA. AND THOSE APPLIANCES ARE NOW ALSO BACKING UP TO A DATA CENTER THAT'S NOT EVEN OURS, FULLY ENCRYPTED OFF OUR NETWORK IN ARIZONA, SO THAT IN THE EVENT THAT WE WERE TO PHYSICALLY LOSE THE CIVIC CENTER OR WE'D HAVE A SIGNIFICANT COMPROMISE IN OUR BACKUPS WERE ALSO COMPROMISED.

WE ALSO HAVE A COPY THAT IS PHYSICALLY OFF THE NETWORK AND IN ANOTHER STATE THAT WE CAN RESTORE FROM.

I MENTIONED THAT WE DO PENETRATION TESTING. WE ALSO DO REGULAR REVIEWS OF OUR PHYSICAL SECURITY AND INFRASTRUCTURE, AND WE'VE GOT SOME PARTNERS TO HELP US WITH THAT, AS WELL AS OUR OWN POLICE DEPARTMENT HELPS US WITH THAT. SO THIS IS KIND OF MY LAST SLIDE HERE, BUT I DID WANT TO TALK A LITTLE BIT ABOUT RISK.

BELIEVE IT OR NOT, 55% OF INFORMATION SECURITY INCIDENTS ARE CAUSED BY PEOPLE, WHETHER IT BE SOMEBODY ACCIDENTALLY CLICKING A PHISHING LINK, THOSE THAT REMEMBER THE TARGET BREACH OF 2013, WHICH WAS A BIG, BIG ONE FROM THEM THAT WAS CAUSED BY SOMEBODY THAT ALLOWED A HVAC CONTRACTOR INTO THEIR SERVER ROOM, WHO THEN PLUGGED A USB DRIVE IN AND LEFT, AND MONTHS LATER DECIDED TO CONNECT BACK TO THAT.

AND ALL OF A SUDDEN YOU HAD A BACK DOOR INTO THE FACILITY. SO WHETHER IT BE A SIMPLE MISTAKE OR NOT, SOMEBODY'S NOT FOLLOWING THE PROTOCOL GIVING PHYSICAL ACCESS TO A LOCATION.

THE PEOPLE ARE OUR MOST IMPORTANT ASSET WHEN IT COMES TO SECURING THE CITY.

SO THAT'S WHY WE FOCUS SO MUCH ON TRAINING AND POLICY AND DOING THINGS CONSISTENTLY.

PHISHING IS, OF COURSE, BIG. RANSOMWARE IS, OF COURSE, BIG.

RANSOMWARE IS GROWING AND GROWING. LESS THAN HALF THE TIME, IF YOU ACTUALLY PAY THE RANSOM, WILL YOU ACTUALLY GET YOUR DATA BACK? THAT'S WHY OUR BACKUPS ARE SO IMPORTANT.

AND THEN HAVING A STRONG INCIDENT RESPONSE PROGRAM IN PLACE IS REALLY IMPORTANT.

WE ARE A MEMBER OF A SOUTHERN CALIFORNIA INSURANCE CONSORTIUM, IN WHICH A NUMBER OF PUBLIC SECTOR AGENCIES PAY INTO A BIG POOL, AND THEN WHOEVER NEEDS IT, GETS IT SORT OF THING.

AND THAT ALSO DOES GET US A NUMBER OF ON CALL RESOURCES THAT WOULD BE AVAILABLE TO US SHOULD WE SUSPECT OR HAVE AN ACTUAL INCIDENT THAT WOULD IMMEDIATELY BE AVAILABLE.

OUR TECH REFRESH FOLKS ALSO HAVE THAT AVAILABLE FOR US AS WELL.

THEY'VE GOT AN INSURANCE PARTNER, WHEREAS IF SOMETHING HAPPENED AND THEY THINK IT WAS ON OUR FIREWALLS OR OUR NETWORK, THAT THAT PARTNER COULD COME IN AND ASSIST US AND DO FORENSICS AND, YOU KNOW, LOCK THINGS DOWN, PREVENT THINGS FROM SPREADING.

AND UNFORTUNATELY, ALMOST ALL OF THESE AGENCIES THAT YOU'VE SEEN IN RECENT TIMES HAVE MAJOR CYBERSECURITY EVENTS, HAVE THEN HAD TO GO THROUGH SOME RECOVERY PHASE.

SOMETIMES THEIR BACKUPS ARE COMPROMISED AS PART OF THE PROCESS.

AND THAT'S BEEN A BIG, BIG PROBLEM FOR THEM, WHICH IS WHICH IS WHY IN THIS LAST 3 OR 4 MONTHS OR SO, THAT WE HAVE FOCUSED SO MUCH ON MODERNIZING THAT FOR US.

ALL RIGHT. SO THAT'S MY SPIEL. I KNOW THAT WAS A LOT.

I TALK FAST, IT'S LATE, SO. BUT I AM ALL YOURS FOR QUESTIONS, COMMENTS, CONCERNS.

THANK YOU VERY MUCH, MIKE COOPER. THIS WAS THE MOST ENGAGING, FUN IT PRESENTATION I HAVE SEEN.

I AM NOT KIDDING YOU. THAT WAS ACTUALLY ENGAGING TO HAVE YOU PRESENT.

THANK YOU. USUALLY IT PEOPLE THEY'RE, YOU KNOW, THEY'RE NOT PEOPLE-PEOPLE LIKE.

THAT WAS AWESOME. THANK YOU. SHOULD WE START WITH? WHAT'S YOUR ANNUAL BUDGET? THE ANNUAL BUDGET FOR IT IS ABOUT 3.3 MILLION.

AND THAT INCLUDES EVERY PIECE OF EQUIPMENT FOR THE CITY THAT THAT YOU ALL SUPPORT THAT THAT KIND OF EXPENSE? SO THAT WAS LAST FISCAL YEAR'S NUMBER, AND I WOULD CALL LAST FISCAL YEAR, KIND OF MIDDLE OF THE ROAD, ABOUT 400,000 ON THE INFORMATION TECHNOLOGY FUND.

SO YOU KNOW, THAT COULD DROP DOWN TO ABOUT 3 MILLION AND PROBABLY GET UP TO ABOUT 3.7, 3.8 ON BIG YEARS.

AND STEPHANIE IS PROBABLY WONDERING WHERE I'M COMING UP WITH THESE NUMBERS FROM.

[02:05:05]

NOW, THERE ARE OTHER THINGS THAT GO INTO THE INTERNAL SERVICE FUND HAS ITS OWN LINE ITEMS ON MY BUDGET AND CARRYFORWARDS AND CAPITAL PROJECTS AREN'T IN THERE, BUT THAT'S MORE OR LESS WHAT THE YEAR OVER YEAR IS FOR US.

YES, BY FAR THE BEST PRESENTATION I'VE EVER HEARD.

SO THANK YOU SO MUCH. BECAUSE AS COMMISSIONER OR CHAIR ALLEN SAID IT PEOPLE, THEY ARE FROM A DIFFERENT UNIVERSE. SO ANYWAY, THANK YOU FOR THAT.

I HAVE QUITE A FEW QUESTIONS. ONE, YOU SAID YOU HAVE EIGHT EMPLOYEES, RIGHT? YES. FULL TIME? YEAH. THERE'S EIGHT FULL TIME EMPLOYEES MYSELF AS IT DIRECTOR, I HAVE TWO FOLKS THAT ARE FOCUSED ON INFRASTRUCTURE, NETWORK SERVERS AND KIND OF THE COMPLEX APPLICATION.

THERE ARE TWO PEOPLE THAT ARE FOCUSED, SORRY, THREE PEOPLE THAT ARE NOW OFFICIALLY FULLY FOCUSED ON HELPDESK AND TICKET HANDLING, THE DAY TO DAY AROUND THE SHOP. AND THEN I'VE GOT A VACANT POSITION AND THEN ONE OTHER INDIVIDUAL THAT ARE FOCUSED PRETTY SPECIFICALLY ON JUST A COUPLE OF OUR HEAVY APPLICATIONS. ONE OF THEM IS TYLER MUNIS IS ALMOST A FULL TIME EMPLOYEE IT TAKES TO KEEP TYLER GOING.

YOU DON'T HAVE ANY CONTRACTORS OR PEOPLE? THERE'S NO CONTRACT EMPLOYEES THAT WE'RE MANAGING.

BOTH KIS AND TECH REFRESH ARE CONTRACTORS THAT WE CAN CALL AS NEEDED OR PROJECT BASED.

IF WE'RE IF WE'RE REPLACING FIREWALLS, TECH REFRESH WOULD BE VERY HEAVILY INVOLVED.

IF WE WERE REPLACING SERVERS, I WOULD BE HEAVILY INVOLVED.

THE ONLY FOLKS THAT ARE KIND OF DAY TO DAY, YOU KNOW, HERE TWO, THREE, FOUR DAYS A WEEK DOING THINGS ARE THE FOLKS THAT RUN THIS ROOM FROM PEGASUS STUDIOS. OKAY. NOW, ALL THESE EIGHT EMPLOYEES, THEY'RE ALL US CITIZENS.

YES. NOBODY AT RISK OF GETTING DEPORTED OR SOMETHING? NO, NO, NO, NO. YEAH. WE GO THROUGH THE SAME FBI BACKGROUND CHECK THE POLICE DEPARTMENT GOES THROUGH, INCLUDING GETTING TAILED FOR A COUPLE OF DAYS FOR SOME, FOR SOME OF OUR POSITIONS.

SO, YEAH, THEY PUT US THROUGH THE RINGER WHEN FOLKS ARE ONBOARDED, FOR SURE.

YEAH. OKAY. YOU TALKED ABOUT CYBERSECURITY. I DON'T HAVE ANY PROBLEM WITH THAT.

THE ONE THING THAT I WOULD REALLY LIKE TO SEE IS DATA ANALYTICS, BECAUSE WE HAVE MOUNTAINS OF DATA.

AND IN EVERY PROJECT, IN EVERY MEETING, WHEN WE ASK FOR SOMETHING, WE'RE TOLD, WELL, WE HAVE THE DATA, BUT IT'S VERY HARD TO GET TO IT. YEAH. SO RIGHT NOW THAT'S A BIG THING, ESPECIALLY WITH THE AI, YOU HAVE SO MANY POWERFUL TOOLS THAT CAN NOT ONLY COLLECT THE DATA THAT IS PERTINENT TO THE SUBJECT, BUT ALSO GIVE US THE ANALYSIS. SO WE REALLY NEED TO FOCUS ON THAT.

YEAH. I DON'T DISAGREE WITH YOU. WE'RE, WE ARE AT A PLACE IN TIME WHERE SOME OF THESE TOOLS HAVE NOW CAUGHT UP TO A POINT WHERE, YOU KNOW, THEY CAN LOOK ACROSS MULTIPLE SYSTEMS AND BE ABLE TO PUT SOME, SOME VERY USEFUL INFORMATION TOGETHER.

ONE ONE PRODUCT THAT COMES TO MIND IS AND YOU GUYS HAVE MAY HAVE SEEN IT COME ACROSS ON SOME OF THE I KNOW FOR SURE THERE'S AN UPCOMING BUDGET ITEM ON IT, BUT THERE'S A, THERE'S A PRODUCT CALLED PEREGRINE THAT THE POLICE DEPARTMENT HAS IMPLEMENTED IN THE LAST TEN MONTHS OR SO.

AND PEREGRINE IS AN AI BASED TOOL THAT CAN REACH INTO PD, HAS DOZENS AND DOZENS AND DOZENS OF SYSTEMS. IT CAN REACH INTO OUR COMPUTER AIDED DISPATCH SYSTEM.

IT CAN REACH INTO WHERE WE'RE STORING OUR BODY CAMERA FOOTAGE. IT CAN REACH INTO THE COUNTY'S DATABASES, AND IT CAN IT CAN DO DATA MINING. IT CAN MAKE CORRELATIONS BETWEEN THESE THINGS AND IT HELPS THEM.

IT HELPS THEM SEE THINGS THAT THEY WOULDN'T HAVE EVER BEEN ABLE TO SEE IF THEY HAD TEN INDIVIDUAL PLATFORMS TOGETHER, LIKE LOOKING AT THEM SEPARATELY. IT PUTS IT ALL TOGETHER AND MAKES IT MUCH MORE USEFUL FOR THEM.

THAT'S ONE OF THE NEWER PIECES OF TECHNOLOGY THAT THAT WE'VE BROUGHT ON TO THE CITY.

IT'S BEEN HERE LESS THAN A YEAR, AND I COULD SEE SEVERAL DEPARTMENTS BENEFITING FROM TOOLS LIKE THAT.

OKAY. YOU HAVE UNIFORM PLATFORM, AT LEAST FOR THIS CITY, RIGHT? YEAH. FOR WHAT? FOR THE WHOLE SYSTEM. SO THAT MEANS THE FIRE DEPARTMENT DOESN'T HAVE A SEPARATE DATA CENTER OR A SEPARATE. OH, YEAH. CORRECT. YEAH IT IS PRETTY CONSISTENT ACROSS THE CITY.

SO THERE ARE REALLY ONLY TWO PLACES WHERE SERVERS LIVE.

ONE PHYSICALLY IN THE BASEMENT DOWN HERE IN CITY HALL AND THEN IN THE BASEMENT IN THE POLICE DEPARTMENT IS THE OTHER LOCATION WHERE SERVERS PHYSICALLY LIVE.

AND THE CONCEPT THERE IS, IF WE WERE TO LOSE EITHER LOCATION PHYSICALLY, WHETHER IT BE POWER,

[02:10:02]

NOW THE IT FIELD IS PROBABLY THE FASTEST GROWING AND FASTEST CHANGING FIELD BECAUSE THE TECHNOLOGY.

HAVE YOU LOOKED AT WHAT THE OTHER CITIES ARE USING? WHAT ARE THE BEST PRACTICES? BECAUSE THIS IS ONE AREA THAT CAN HAVE TREMENDOUS IMPROVEMENT IN SPITE OF THE FACT THAT WE HAVE DONE SO MUCH.

SO, YEAH, THE SHORT ANSWER IS YES. THIS IS GOING TO BE AN EARFUL.

THERE'S AN ORGANIZATION CALLED THE MUNICIPAL INFORMATION SYSTEMS ASSOCIATION OF CALIFORNIA.

I HAVE BEEN A MEMBER FOR A VERY LONG TIME. I WAS THE VICE PRESIDENT OF THE NORTHERN CALIFORNIA CHAPTER BEFORE COMING DOWN TO SOUTHERN CALIFORNIA.

AND ACTUALLY, THE MISAC PRESIDENT IS MIGUEL GUARDADO OVER AT CITY MANHATTAN BEACH.

AND HE AND I LIVE ABOUT TEN MINUTES FROM EACH OTHER.

SO IT'S THE IT DIRECTORS AMONGST THE CITIES ARE A PRETTY CLOSE KNIT COMMUNITY, AND WE DO A NUMBER OF EVENTS EACH YEAR WHERE WE ALL GET TOGETHER, WE SHARE IDEAS, WE DO OUR OWN PRESENTATIONS AND THEN SOME.

SOME KEY VENDORS WILL COME IN AND DO PRESENTATIONS AS WELL.

AND THAT REALLY ENABLES US TO SEE AND HEAR WHAT OTHERS ARE DOING.

THE ACTUAL SOUTH BAY IT DIRECTORS GET TOGETHER ABOUT ONCE A QUARTER FOR LUNCH AND BEND EACH OTHER'S EAR AS WELL.

AND WE DO ALSO INCLUDE A COUPLE OF THE SCHOOL DISTRICTS AS SUSANA FROM REDONDO UNIFIED WILL COME WITH US PRETTY REGULARLY, AND WE JUST GET TO HEAR WHAT OTHER FOLKS ARE DOING, WHAT OTHER PROJECTS ARE COMING UP, WHAT'S WORKING, WHAT'S NOT WORKING. IT'S AN INCREDIBLY VALUABLE RESOURCE FOR US, FOR SURE. NOW, I'VE MENTIONED TO OUR CITY MANAGER THAT AT THE FEDERAL LEVEL, WE GOT THE DEPARTMENT OF GOVERNMENT EFFICIENCY AND THEY GOT SOME 2020 SOMETHING YOUNG IT STAFF LOOKING THROUGH ALL THE DATA AND HOW TO ANALYZE IT AND HOW TO IMPROVE ANY INTERNAL PROCESS.

IS THERE ANYTHING THAT YOU CAN DO TO JUST SEE WHAT THE INTERNAL PROCESS IS LIKE? CAN THEY BE IMPROVED AND CAN THEY BE STREAMLINED? YEAH. TYPICALLY YOU WOULD DO THAT THROUGH LIKE A THIRD PARTY CONSULTANT.

WE HAVE PRIOR TO ME COMING. SO MY, I'M ASSUMING EVERYBODY KNOWS CHRIS BENSON OR AT LEAST KNOWS THAT NAME MY PREDECESSOR WAS IN WAS IN MY SEAT FOR 40 YEARS.

SO WHEN CHRIS WAS GETTING READY TO RETIRE MIKE WYZANSKI BROUGHT A COMPANY IN TO COME IN AND DO KIND OF NOT ONLY AN ASSESSMENT OF IT, BUT ALSO WENT AROUND AND INTERVIEWED ALL THE DEPARTMENT HEADS AND TALKED ABOUT THEIR WANTS AND NEEDS, WHAT'S WORKING, WHAT'S NOT WORKING. SO THAT'S KIND OF THE MOST RECENT TIME THAT THE CITY HAS HAD KIND OF A COMPREHENSIVE OVERVIEW.

I CAME IN AND DID A TON OF KIND OF RIP OUT AND REPLACEMENT.

THERE ARE A LOT OF THINGS MY PREDECESSOR DIDN'T WANT TO MAKE A LOT OF BIG PURCHASING DECISIONS RIGHT BEFORE LEAVING.

SO I CAME IN AND REPLACED THE ENTIRE SERVER INFRASTRUCTURE, EVERY COMPUTER, EVERY PRINTER.

WE REPLACED THE PHONE SYSTEM. IT WAS LIKE WE WERE RIPPING OUT EQUIPMENT AND REINSTALLING EQUIPMENT FOR ABOUT A YEAR AND A HALF STRAIGHT.

SO WE'RE KIND OF AT THE POINT NOW WHERE THAT'S KIND OF COMING TO A CONCLUSION, AND WE'RE GETTING READY AGAIN TO DO AN ASSESSMENT OF WHERE WE ARE AND WHAT SYSTEMS MIGHT BE OVERLAPPING WITH OTHERS. I GUESS MY GENERAL OPINION OFF THE TOP OF MY HEAD, THERE'S NOT A LOT OF OVERLAP.

THERE'S NOT A LOT OF WASTE. THE BUDGET IS PRETTY WELL DIALED IN TO.

WE BUILD A LITTLE BIT OF BUFFER IN FOR THINGS TO INCREASE YEAR OVER YEAR, BUT EVERYTHING IS PRETTY WELL DIALED INTO INDIVIDUAL ITEMS THAT WE KNOW WE'RE GOING TO NEED TO DO IN THE NEXT YEAR AS WE DO OUR BUDGET.

ANY PROJECT MANAGEMENT SOFTWARE THAT YOU HAVE? NOT REALLY, THAT'S ON MY TO DO LIST. YEAH. THE CITY DOES NOT REALLY HAVE ANY GLOBAL PROJECT MANAGEMENT SOFTWARE.

OUR ENGINEERING TEAM USES BENTLEY. SO THE FOLKS THAT DO REALLY HEAVY BUILDING PROJECTS AND PLAN REVIEWS HAVE SOME ENGINEERING TOOLS IN PLACE.

WE'VE GOT BLUEBEAM FOR ABOUT 30 PEOPLE THAT ARE BEING USED FOR PLAN REVIEW AND PLAN CHECK.

BUT A FEW FOLKS HAVE MICROSOFT PROJECT. NOT A TON.

I'D LOVE TO HAVE KIND OF A LIGHT WEIGHT PROJECT MANAGEMENT TOOL THAT SMALLER DEPARTMENTS THAT CAN USE OR DEPARTMENTS THAT DON'T, YOU KNOW, DON'T NEED TO MANAGE BUILDING A GIGANTIC CONSTRUCTION PROJECT.

THAT'S SOMETHING I'D LOVE TO HAVE ONE DAY. BECAUSE NOW WE'LL BE LAUNCHING TWO, WHAT, JUST ONE MAJOR PROJECT.

THAT FOR WHICH THE BOND HAS BEEN APPROVED. SO IF AN OUTSIDE CONTRACTOR COMES IN AND HE HAS HIS OWN SOFTWARE, HIS OWN SYSTEM, IF THAT DOESN'T TALK TO US, THEN YOU HAVE NO WAY OF TRACKING OR EVEN RECOMMENDING ANY CHANGES IN THEIR PROCESSES. YEAH, THAT'S VERY THAT'S VERY TYPICAL.

ESPECIALLY IF WE WIND UP DOING DESIGN BUILD. IT WOULD BE VERY TYPICAL FOR EITHER A PRIMARY CONTRACTOR OR A DESIGN BUILD CONTRACTOR TO COME IN AND WANT TO USE THEIR OWN TOOLS.

[02:15:08]

BUT THAT IS CERTAINLY SOMETHING WE'RE GOING TO HAVE TO DISCUSS AS WE START HAVING THOSE CONVERSATIONS ABOUT HOW WE'RE GOING TO INTERACT WITH WHETHER IT BE THE GC OR A DESIGN BUILD CONTRACTOR IN THAT ARENA. IT'S GOING TO BE VERY, VERY IMPORTANT.

YOU GOT TO BE ABLE TO COMMUNICATE. THE TWO SYSTEMS HAVE GOT TO BE ABLE TO COMMUNICATE WITH EACH OTHER SO YOU CAN GET THE DATA THAT YOU WANT.

THEY CAN DO WHATEVER THEY WANT WITH. YEAH. OKAY.

OKAY. THAT'S ABOUT ALL I HAVE FOR NOW. AND I WISH AND HOPE THAT YOU WILL COME HERE MORE FREQUENTLY.

THIS IS FUN. THANK YOU SO MUCH FOR HAVING ME.

GREAT QUESTIONS. YEAH. NO, I THINK MIKE. YEAH.

NO, MIKE DID A TERRIFIC PRESENTATION. I'M VERY IMPRESSED WITH THE WAY THAT YOU'VE SET THINGS UP.

AND I'M VERY PLEASED WITH THE FACT THAT YOU'RE MANAGING OUR IT GROUP.

YEAH. THANK YOU SO MUCH. THIS IS ONE OF THE MOST CONSISTENT.

THIS IS ABSOLUTELY THE MOST CONSISTENT ENVIRONMENT THAT I'VE WORKED IN.

I'VE BEEN IN HIGHER ED. I'VE BEEN IN AGENCIES THAT HAD KIND OF, YOU KNOW, MONEY AND POWER POCKETS ALL OVER THE PLACE.

AND, AND YOU WIND UP WITH A BUNCH OF DUPLICATE SYSTEMS. YOU WIND UP HAVING TO MANAGE MULTIPLE PLATFORMS BECAUSE DEPARTMENT A DOESN'T LIKE SOMETHING.

AND THINGS ARE VERY CONSISTENT HERE. I ANYBODY FROM ANY DEPARTMENT CAN WALK UP, WALK, SIT DOWN ON A COMPUTER IN OTHER BUILDING, SIT DOWN, SIGN IN, AND IT'LL BE JUST LIKE THEY'RE AT THEIR DESK. IT'S PRETTY AMAZING WHAT WE'VE BEEN ABLE TO ACCOMPLISH AT THIS CITY TO MAKE THINGS EASY FOR FOLKS.

COMMISSIONER SAMPLES. IF YOU COULD DO ONE THING FOR ME WHEN YOU GET THROUGH DOING THE 911 SYSTEM, BECAUSE I KNOW THAT'S A MESS. I'M DEALING WITH THREE OF THEM RIGHT NOW.

BUT SOMEHOW WORK ON OUR CITY WEBSITE AND THE DATA MINING WITHIN THAT, TRYING TO FIND WHETHER IT'S FINANCIAL DATA OR OTHER INFORMATION, DOING A SEARCH IS A NIGHTMARE. AND I KNOW PART OF THE PROBLEM GOES BACK TO SOME OF THE ARCHAIC WAYS THAT MATERIAL WAS ARCHIVED.

BUT PLEASE, GIVE US A HAND. WE HAVE HAD SOME INTERESTING CONVERSATIONS ABOUT THAT THAT'S COMING UP IN STRATEGIC PLANNING, I CAN GUARANTEE YOU. THAT'S ALL I'VE GOT. THANK YOU.

GREAT PRESENTATION. THANK YOU. COMMISSIONER WOODHAM.

NO, NOTHING. NOTHING ELSE. AGAIN, GOOD PRESENTATION.

APPRECIATE IT. THE, AND THIS IS ONLY I'M CURIOUS.

I ONLY KNOW THE FINANCE WORLD IS. DO WE HAVE ANY DATA INTEGRATION SYSTEM THAT, FOR EXAMPLE, FINANCE DOESN'T HAVE TO BE TYPING THOSE NUMBERS IN EXCEL, BUT IT'S PULLING NUMBERS FROM.

IS IT EVEN POSSIBLE TO DO THAT? ARE YOU TALKING ABOUT LIKE FOR PREPARING BUDGETS ANNUALLY? YES, SEVEN MIGHT EVEN WANT TO TALK ABOUT THAT A LITTLE BIT.

WE DO. WE HAVE WE HAVE A TYLER WHO MAKES OUR ERP ALSO HAS PURCHASED A COUPLE OF OTHER PRODUCTS ALONG THE WAY.

ONE IS A PRODUCT CALLED OPENGOV. ANOTHER PRODUCT IS CALLED CLEARGOV.

AND BOTH OF THOSE ARE TOOLS THAT WE OWN. BITS AND PIECES OF THAT HELP US PULL DATA OUT OF TYLER AND DO THINGS LIKE HELP US PREPARE THE BUDGET BOOK.

TWO YEARS AGO, THAT WOULD HAVE BEEN TOTALLY PEN AND PAPER, EXCEL SPREADSHEETS, AND NOW THAT'S ALL AVAILABLE ONLINE.

STEPHANIE KNOWS MORE ABOUT IT THAN I DO FOR SURE. I MEAN, IN TERMS OF INTEGRATION, IT DOESN'T.

YOU KNOW, THE SYSTEMS DON'T ALLOW US TO GO IN AND JUST PULL THE DATA.

THAT WOULD BE A WONDERFUL DREAM. I'M NOT EVEN SURE WHAT THAT WOULD LOOK LIKE UNLESS WE COULD DO, YOU KNOW, TELL IT TO DO DATA MINING. BUT UNTIL WE THE TECHNOLOGY GETS TO THAT POINT.

THAT WAS MY QUESTION. YEAH. YEAH, I THAT'S WHAT I'M WAITING FOR.

THE CITY MANAGER TALKED ABOUT THAT TODAY. IT'S LIKE, YOU KNOW, IT'S INTERESTING.

CERTAIN AI IS A VERY GENERAL TERM THESE DAYS.

IT IS ALSO A VERY ACTIVE. IT'S VERY MUCH IN THE STARTUP WORLD.

THERE IS SOMETHING LIKE 4000 NICHE AI COMPANIES THAT ARE IN STARTUP MODE RIGHT NOW.

WE ARE THESE DEPARTMENTS ARE CONSTANTLY BEING BOMBARDED BY THE AI COMPANY OF THE WEEK THAT GOT AHOLD OF THEIR EMAIL ADDRESS.

YOU KNOW, CERTAIN THINGS ARE REALLY, REALLY GOOD.

IF YOU NEED TO DO SOMETHING QUICK AND DIRTY AND ADMINISTRATIVE LETTER, WRITE A SOLE SOURCE JUSTIFICATION, YOU KNOW, WANT TO HAVE SOMETHING KIND OF SCOUR THE INTERNET FOR YOU AND PUT TOGETHER SOME BULLET POINTS.

YOU KNOW, IT'S THERE. MY EXPERIENCE, LIKE JUST CREATING THIS POWERPOINT, I USE TOOLS TO I WROTE AN OUTLINE, AND THEN I TRIED TO USE TOOLS TO HAVE IT CREATED, AND I WOUND UP THROWING OUT HALF OF IT.

AND IF YOU THINK ABOUT IT, YOU KNOW, WHEN WAS THE LAST TIME YOU ACTUALLY INTERACTED WITH THE, YOU KNOW, THE SPECTRUM AI CHATBOT AND ACTUALLY WALKED AWAY HAPPY? SO WE'RE NOT QUITE THERE YET. WE ARE PROBABLY YEARS AWAY BEFORE HAVING SYSTEMS THAT CAN RELIABLY AND ACCURATELY BE ABLE TO PULL INFORMATION.

[02:20:05]

IT WILL FIND THE NUMBERS. IT KIND OF WRITES YOUR MANAGEMENT DISCUSSION LETTER FOR YOU.

SO THERE ARE DEFINITELY GOVERNMENTS OUT THERE DOING THINGS THAT THAT USE AI TO PULL THIS DATA.

I'M ALWAYS A LITTLE, YOU KNOW, HESITANT ABOUT YOU KNOW, THIS IS OUR FINANCIAL INFORMATION.

OBVIOUSLY, WE'RE GOING TO MAKE IT PUBLIC. AT SOME POINT.

AND, YOU KNOW, WE WANT TO BE TRANSPARENT AS PUBLIC. BUT I THINK, YOU KNOW, TO MIKE'S POINT THAT THERE'S A LOT OF THESE AND IT'S VERY EXPERIMENTAL.

I WOULD I WOULD LOVE TO BE ABLE TO FIND WAYS TO USE IT THAT ARE MORE A LITTLE MORE TARGETED, LIKE YOU'RE SAYING. AND SO THAT WE CAN USE IT EFFECTIVELY WITHOUT, YOU KNOW, JUST MAKE SURE WE KNOW WHAT WE'RE DOING.

THANK YOU. DO WE HAVE AN AI POLICY IN THE CITY? WE DON'T. WE WERE TALKING ABOUT THAT, TOO. MY GUESS IS WHAT'S GOING TO COME OUT OF THE STRATEGIC PLANNING THAT'S HAPPENING AT THE END OF THE MONTH IS GOING TO BE SOME KIND OF A, YOU KNOW, AT LEAST START PUTTING SOME POLICIES TOGETHER AND PUTTING SOME DIRECTIONS TOGETHER AND PROBABLY, YOU KNOW, LIST OUT A SMALL HANDFUL OF BUSINESS OBJECTIVES.

INDIVIDUAL DEPARTMENTS HAVE SOME IDEAS. WHAT I'M A LITTLE WORRIED ABOUT IS THAT THE AI COMPANY FLAVOR OF THE MONTH TREND OF THE MONTH, WE DON'T WANT THAT TO COME THROUGH AND WAG THE DOG ON WHAT WE NEED TO DO.

SO I'D LIKE FOR US TO REALLY SIT DOWN AND COME UP WITH REAL, CONCRETE, SPECIFIC, ACHIEVABLE AND TIME BOUND GOALS THAT WE CAN PUT TOGETHER FOR AI.

IF WE TRY TO BOIL THE OCEAN, IT'S NOT GOING TO GO WELL.

AND IF WE IF WE SAY YES TO EVERYBODY THAT KNOCKS ON THE DOOR, WE'RE GOING TO WIND UP WITH 500 DIFFERENT PLATFORMS TO SUPPORT.

SO I VERY MUCH EXPECT TO BE TALKING ABOUT THIS AT THE STRAT PLAN SESSION ON THE 29TH.

THANK YOU. IS THIS POWERPOINT YOU USE? IS IT ENHANCED POWERPOINT? THIS IS PREZI. SO THIS IS ACTUALLY ONLINE. I'M IN A WEB BROWSER.

THIS IS AN ONLINE PRODUCT CALLED PREZI. YEP. P-R-E-Z-I.

I WILL HAVE TO WRITE THAT DOWN. IT'S PRETTY COOL.

IT LOOKS PRETTY COOL. THIS IS WHAT I MEAN WITH MY SEVEN DAY FREE TRIAL.

IS THE STRATEGIC MEETING. WHAT TIME IS IT? IT'S OPEN TO PUBLIC, RIGHT? IT'S ON THE 29TH. 3:30 START. 3:30. YES, I BELIEVE SO.

IT'S ACTUALLY ANOTHER ITEM ON OUR AGENDA FOR THIS EVENING.

WE CAN PROBABLY GO THROUGH IT FAIRLY QUICKLY, BUT ONE ITEM WE HAD FOR YOU TODAY IS JUST TO BRING IT UP THAT THAT'S GOING TO BE TAKING PLACE. YEAH. YES. OKAY. THANK YOU VERY MUCH. DO WE NEED TO? IT DOESN'T SAY FILE OR RECEIVE OR ANYTHING. DO WE NEED TO DO ANYTHING AT ALL? NO. YOU COULD JUST DO A RECEIVE AND FILE. BUT I WILL ADD, THERE'S NO PARTICIPANTS ON ZOOM AND NO E COMMENTS.

THANK YOU. MOVE TO RECEIVE AND FILE. SECOND. ANYONE.

SECOND. SECOND. ALL IN FAVOR? AYE, AYE. MOTION PASS.

THANK YOU. THANK YOU SO MUCH. IT'S BEEN A PLEASURE.

THANK YOU. ALL RIGHT. WE ARE ON ITEM NUMBER J3, JOINT PUBLIC WORKS AND SUSTAINABILITY COMMISSION AND BUDGETING AND FINANCE COMMISSION MEETING SCHEDULING. SO I SEE THAT THIS IS FOR THEY'RE REQUESTING APRIL 28TH.

IS IT 6:00 OR IT SAYS 6:00? 6:00? 6:00 PM. SO THE PUBLIC WORKS AND SUSTAINABILITY COMMISSION, THEIR REGULAR MEETING IS ACTUALLY AT 7:00 PM THAT NIGHT.

SO THEY ARE PROPOSING THAT THE JOINT MEETING IS AT 6:00 PM AND THAT IT WILL JUST PROCEED THEIR REGULAR MEETING.

SO IS WILL THAT BE OKAY? SHOULD WE HAVE A MOTION THAT OUR NEXT MEETING, INSTEAD OF BEING ON A WHENEVER IT WAS SUPPOSED TO BE 14TH, IT'S ON THE 28TH OR 28TH? YES. 6:00. WOULD THAT WORK? ALL IN FAVOR? YEAH. AYE. MOTION PASSED. OKAY.

WHO WAS THE SECOND ON THAT? JUST WANTED TO CLARIFY.

CAN SOMEONE SECOND IT? SECOND. THANK YOU. ALL RIGHT.

WAIT A MINUTE, WAIT A MINUTE. YES. IT SAYS OUR NEXT ONE IS ON THE 28TH.

LOOKING AT THE CITY CALENDAR, IT SAYS THAT WE'RE ALSO MEETING ON THE 10TH.

YES, THAT'S OUR REGULAR MEETING DATE. SO SINCE WE HAVEN'T OFFICIALLY CANCELED IT YET, IT WAS THERE ON THE CALENDAR.

OKAY, SO WE'RE GOING TO BE MOVING THAT TO THE 28TH, RIGHT? SO OKAY. SUBJECT TO YOUR APPROVAL, WE DIDN'T WANT TO CANCEL IT BEFORE WE CONFIRMED THAT.

WELL, IT'S FINE BECAUSE I WON'T BE HERE THE 10TH. THAT'S WHY I SAID UNIVERSE SOMETIMES JUST WORKS.

ITEM NUMBER J4. SO, THIS WAS A PUBLIC COMMUNICATION FROM SOMEONE, AND THEY WANTED TO MAKE SURE.

OH, LORDY, I PRINTED. WHAT DID THEY WANT? THEY WANTED TO REQUEST STATUS FROM THE BUDGET FINANCE COMMITTEE OF REPLACING VETERANS MEMORIAL PLAGUES THAT WERE THAT WERE STOLEN A YEAR AGO.

CITY NEEDS TO FIND FUNDS TO REPLACE THESE PLAQUES AND THE AND TO HONOR OUR VETERANS.

[02:25:07]

AND I AS A HIGH PRIORITY, AND I WANT TO RESPECT THE WISHES OF THIS PERSON.

AND I HAVE AN AGENDA. AND I ALSO SAW THAT STEPHANIE INCLUDED THE BUDGET RESPONSE REPORT.

AND THEY ARE $21,375. IS THIS SOMETHING THE COUNCIL NEEDS TO APPROVE TO SPEND? SO COUNCIL DID CONSIDER THIS AT MIDYEAR AND THEY APPROVED IT.

AND STAFF HAS COMMITTED TO REPLACING THESE BEFORE MEMORIAL DAY.

SO I BELIEVE THAT IS ALREADY IN PROGRESS. ALL RIGHT.

WE CAN MOVE ON TO THE NEXT ITEM. DO WE NEED TO RECEIVE A FILE OR.

YOU DON'T HAVE TO. NO. ARE THERE ANY. OKAY. ARE THERE ANY COMMENTS FROM THE PUBLIC ANYWHERE? SO NO PUBLIC COMMENTS AND NO ONE ON ZOOM. THANK YOU.

MOVE TO RECEIVE AND FILE. MOVE TO RECEIVE AND FILE.

YOU GOT TO DO SOMETHING WITH IT. THERE'S GOT TO BE A DISPOSITION WE CAN MOVE TO RECEIVE AND FILE.

SO WE'LL DO IT FIRST. ANYONE WANTS TO MAKE A MOTION? I DID. WE DID. SECOND. SECOND. ALL IN FAVOR? AYE.

AYE. AYE. ITEM NUMBER J FIVE. DISCUSSION AND CONSIDERATION OF THE CITY COUNCIL'S STRATEGIC PLAN.

ALL RIGHT, STEPHANIE, IT'S ALL YOURS. OKAY. SO AGAIN, THIS ITEM IS JUST TO MAKE SURE THAT WE MAKE ALL OUR COMMISSIONERS AWARE THAT THE STRATEGIC PLANNING SESSION IS COMING UP. THIS IS PRETTY IMPORTANT.

TIME FOR OUR CITY COUNCIL AGAIN. WE HAVE A FEW NEW MEMBERS.

SO THIS IS WHEN THEY GET TOGETHER. THEY DISCUSS PRIORITIES, AND THEY SET STAFF'S WORK PLAN FOR THE NEXT YEAR.

SO THEY AND THEN THEY WILL RECEIVE MONTHLY UPDATES FROM CITY STAFF, AND THEY'LL MEET AGAIN EVERY SIX MONTHS TO KIND OF REVIEW AND REFRESH THE GOALS. AS PART OF THIS, THEY ARE LOOKING FOR INPUT AND RECOMMENDATIONS FROM THE COMMISSION.

SO WE WANTED TO PUT THIS ON HERE TO GIVE THE COMMISSION A CHANCE TO DISCUSS ANY PRIORITIES YOU WOULD LIKE OR DISCUSS THE PROCESS OF EXPRESSING YOUR PRIORITIES TO THE COUNCIL BEFORE THE STRATEGIC PLANNING PROCESS.

SO IT IS APRIL 28TH, I BELIEVE IT'S AT 3:30. I CAN CONFIRM I DID NOT PUT THIS IN THIS REPORT.

BUT YES, IT IS OPEN TO THE PUBLIC. ANYONE IS WELCOME TO COME AND TO PARTICIPATE, BUT I THINK YOUR RECOMMENDATIONS HAVE MORE WEIGHT COMING FROM A COMMISSION. WE WOULD ASK FOR THIS PROBABLY A WEEK IN ADVANCE.

IF YOU PROVIDE THE LETTER A WEEK IN ADVANCE, WE THEN INCLUDE THAT WITH THE COUNCIL'S AGENDA PACKET.

AND THEY'LL CONSIDER IT IN ADVANCE OF THE STRATEGIC PLANNING SESSION.

SO, YOU KNOW, IF YOU WANT TO HAVE THE DISCUSSION TONIGHT OR TALK.

WELL, IT'S THE FLOOR IS YOURS. I GUESS IT WOULD HAVE TO BE TONIGHT.

SO THE DISCUSSION HAS TO BE TONIGHT, BECAUSE OUR NEXT MEETING IS NOT UNTIL THE DAY BEFORE.

ALTHOUGH I WILL SAY. WELL, YES, I WAS GOING TO SAY WE CAN YOU CAN PROVIDE IT UP TO, YOU KNOW, THE DAY OF THE MEETING. IT JUST GIVES COUNCIL MORE TIME TO REVIEW IT.

IF THEY HAVE IT IN ADVANCE, WE NEED SOME TIME.

BUT THIS IS THIS IS THE ONLY TIME THAT WE CAN ALL BE IN THE SAME ROOM AND DISCUSS TOGETHER.

TOGETHER, TOGETHER. I MEAN, I THINK ANOTHER OPTION COULD BE IF I KNOW IT'S UNFORTUNATELY LATE TONIGHT, IF YOU HAD BROAD THEMES YOU COULD AGREE ON, AND THEN YOU CAN ASSIGN SIMILAR TO HOW YOU DO LETTERS SIGNED TO COUNCIL MEMBERS TO WORK TOGETHER TO PUT THOSE INTO PAPER.

THAT MIGHT BE AN IDEA AS WELL. SO AND DOES ANYONE HAVE ANY ANY IDEAS, SUGGESTIONS, ANY, ANY STRONG ANYTHING THAT YOU WOULD WANT TO START COLLABORATING ON? I'D LIKE TO SEE THE STRATEGIC PLAN THAT WE HAVE FOR THE CURRENT YEAR.

SO SO WHAT STEPHANIE, I BELIEVE DID SHE INCLUDED IN IN HER IN HER FILES SEPTEMBER 2024 THROUGH APRIL 2025 SIX MONTH OBJECTIVES. SO YES, THAT'S THE MOST RECENT VERSION OF ALL THE COUNCIL OBJECTIVES THAT COUNCIL OUTLINED IN THE LAST STRATEGIC PLAN.

AND IT INCLUDES OUR MOST RECENT UPDATE ON PROGRESS TOWARDS THOSE PLANS.

CAN YOU SEND THAT TO US? BECAUSE I HAVE THOSE ALONG WITH THE AGENDA.

IT'S AN AGENDA. CAN YOU. I DON'T HAVE THE RIGHTS TO DO IT.

WOULD SOMEONE PLEASE HAVE THIS ON THE SCREEN SO WE CAN SEE? DO YOU HAVE IT STEPHANIE? SO WE CAN REVIEW AND I AND I CAN ALSO SO I CAN READ TO YOU PAGE B, IS THIS ON BD OR JUST LETTERS? THEY ARE LETTERS.

WOW. PAGE B ON THE BOTTOM. I WE CAN LOOK AT THE ONES THAT FINANCE HAS BECAUSE WE'RE FINANCE COMMISSION.

SO WE SHOULD BE ONLY ADVISING ON FINANCE ITEMS. WAIT. YEP. SO ON THE VERY BOTTOM OF PAGE B. THE PAGE.

[02:30:03]

THE LAST ITEM. SO THAT'S SOMETHING FINANCE IS WORKING ON OR THEY'VE THEY'RE ACTUALLY ON TRACK.

OR THEY FINISH OR IS THIS FUTURE. SO MAYBE I CAN MAYBE I CAN JUST KIND OF GO OVER THE GOALS AT A HIGH LEVEL.

AND I'LL HIGHLIGHT WHERE FINANCE IS INCLUDED IN THIS.

I WILL SAY, YOU KNOW, SOME OF THE ITEMS THAT YOU MENTIONED TONIGHT, CHAIR ELLEN, ABOUT FOCUS ON ECONOMIC DEVELOPMENT AND REVENUE.

THOSE ARE HIGHLIGHTED IN THE CURRENT STRATEGIC PLAN.

I THINK THIS WOULD BE A GREAT PLACE FOR YOU TO EXPRESS YOUR, YOU KNOW, SUPPORT FOR THOSE IDEAS AND EVEN EXPANDING THOSE IDEAS.

SO, STEPHANIE, IF I JUST WANT TO SHOW, CAN WE GO BACK TO B PAGE B, APOLOGIES.

YES. I JUST WANT TO SHOW COMMISSIONER JESSE WHAT A FINANCE CURRENTLY HAS IN HERE, BECAUSE THAT WAS HIS QUESTION.

SO I WANT TO MAKE SURE WE'RE ADDRESSING HIS QUESTION.

SO THEY HAVE ON THE VERY BOTTOM OF B THEY HAVE FOR FINANCE.

THEY HAVE BUSINESS LICENSE CODE REVIEW, EVALUATE CITY'S BUSINESS LICENSE ORDINANCE AND MAKE RECOMMENDATIONS TO UPDATE BUSINESS DESCRIPTIONS, DEFINITIONS AND FEES. AND THIS IS FOR THE FUTURE.

ON THE LEFT. BUT IT SAYS ON TRACK. SO IS THIS SOMETHING STEPHANIE YOU ARE WORKING ON CURRENTLY? SO THE WAY THAT WE'VE DISCUSSED THIS IS IT'S A LITTLE BIT OF A LONGER TERM GOAL.

WE'RE ON TRACK IN THE SENSE THAT, YOU KNOW, WE KNOW THIS IS PROBABLY SOMETHING IN THE NEXT FISCAL YEAR POTENTIALLY THAT WE'LL LOOK AT.

IT'S JUST A LONGER PROCESS BECAUSE WE HAVE A FAIRLY OLD BUSINESS LICENSE TAX CODE.

AND WE WOULD NEED TO BRING ANY PROPOSED CHANGES TO THE VOTERS.

SO IT'S JUST A LONGER PROCESS, WHICH IS WHY IT'S KIND OF FOR A YEAR OR SO OUT.

BUT SO THIS IS FISCAL YEAR 20, 25, 2526. THIS IS THE CURRENT FISCAL YEAR.

THIS ITEM IS THIS ITEM. ARE YOU FORESEEING THIS TO START WORKING ON THIS 2025 2026? I BELIEVE SO. AGAIN, THIS IS YES, IT'S A THREE YEAR PLAN.

IT'S A ROLLING THREE YEAR PLAN. AND WHEN IT SAYS FUTURE, IT'S PROBABLY BEYOND THIS FISCAL YEAR.

RIGHT. IT DOESN'T SAY WHEN BEYOND THE FISCAL.

AND THAT'S WHY I'M ASKING. YEAH. AND IT'S AND WHEN IT SAYS IT'S IN PROGRESS, THEY'RE STILL THINKING ABOUT IT.

WELL THAT'S WHY I'M ASKING. IS IT OKAY IF I ASK HER? OKAY. THANK YOU. AND AGAIN I WILL SAY, YOU KNOW, I IMAGINE FISCAL YEAR 2526 JUST BASED ON, YOU KNOW, THE DISCUSSIONS THAT THE PROCESS TO BEGIN THE PROCESS TO GO TO THE VOTERS.

YES. THAT'S GOING TO TAKE YEARS. YES. SO THIS IS SOMETHING YOU OKAY NEEDS TO BE TAKEN TO THE VOTERS.

YEAH. YEAH. I'M. YEAH. I'M SORRY. I HAVE NOT HAD A CHANCE TO GO THROUGH THIS, SO LET ME REVIEW IT.

AND BEFORE THE NEXT MEETING, I WILL CERTAINLY PROVIDE MY INPUT.

WELL WE'RE NOT, IF WE'RE GOING TO GIVE OUR INPUT, WE'RE NOT GOING TO HAVE TIME UNTIL THE NEXT MEETING.

THAT'S WHAT I'M SAYING. YEAH. YEAH. IT'LL BE IT'LL BE TOO LATE BECAUSE WE NEED TO MAKE ANY RECOMMENDATIONS BEFORE THAT.

OH, OKAY. THAT'S WHY. AND THEN IF YOU GO TO PAGE F, PLEASE.

ITEM SIX IN THE MIDDLE, KIND OF I BELIEVE THIS IS STAFFING NEEDS ASSESSMENT, PROVIDES CITY COUNCIL WITH A REPORT ON THE COST OF ADDING STAFF POSITIONS TO THE ORGANIZATION THAT WOULD ENHANCE CRITICAL CITY SERVICES.

WHICH SERVICE? WHICH DO WE HAVE ANY OR YOU'VE ALREADY FINISHED THIS.

OF WHICH WE HAVE NOT FINISHED THIS. I BELIEVE THIS IS ANOTHER IN PROGRESS.

THIS ONE SAYS BY APRIL 1ST, 2025 AND IT SAYS ON TARGET.

THAT IS NOT QUITE THAT IS THAT IS NOT PROBABLY 100% ACCURATE AS WE HAVE NOT COMPLETED THIS YET.

THE IDEA I THINK BEHIND THIS IS THAT COUNCIL SAID, YOU KNOW, LOOK, WE'RE ASKING STAFF TO DO A LOT OF THINGS.

A LOT OF TIMES WE HEAR WE DON'T HAVE THE STAFF TO DO THIS WORK.

AND WHAT THEY WANT TO. FOR WHICH POSITIONS? I'M SORRY.

WHAT ARE THE POSITIONS? I UNDERSTAND THE IDEA.

THEY ARE ASKING US TO GO THROUGH AND EVALUATE AND PROVIDE A LIST OF THOSE POSITIONS.

WE HAVE NOT DONE THAT YET. OKAY. THANK YOU. THANK YOU.

AND NEXT WOULD BE PAGE F, PLEASE. AND THAT'S THE SECOND ITEM FROM THE BOTTOM.

CITY AND RB USD SHARED EXPENSES WORK WITH RB USD OFFICIALS TO IDENTIFY ONGOING EXPENSES, DEVELOP APPROPRIATE AGREEMENTS AND MORE USE TO FORMALIZE RESPONSIBILITIES FOR PUBLICLY SHARED FACILITIES.

AND THIS SAYS IT WAS DUE MARCH 1ST AND THEY'RE ON TARGET.

WHICH WERE THE FACILITIES FOR PUBLICLY SHARED FACILITIES.

I WOULD HAVE TO I WOULD HAVE TO. I DON'T HAVE THAT OFF THE TOP OF MY HEAD.

[02:35:05]

AND I BELIEVE. YEAH, LIKE PARK FACILITIES. I BELIEVE THE SCHOOL DISTRICT CAN USE OUR LIBRARIES.

THE CITY HAS ACCESS TO SOME OF OUR SCHOOL BUILDINGS TO DO RECREATION PROGRAMS. SO WE DO HAVE A LIST OF THOSE SPECIFICS. I DON'T HAVE THAT IN FRONT OF ME, BUT.

YEAH. NO. NO PROBLEM. AND YOU HAVE ALREADY COMPLETED DEVELOPING THE AGREEMENTS AND MOUS.

THAT'S IN PROGRESS. THAT'S IN PROGRESS. OKAY.

IN PROGRESS. SO THOSE WERE EXAMPLES OF . YEAH, I GOT IT.

OF WHAT? I'D JUST LIKE TO POINT OUT, YES. IN THE VERY LAST COLUMN ON THAT LINE, THERE'S A DISCUSSION OR THERE'S A DESCRIPTION OF WHAT'S GOING ON.

THAT'S THE BEST INFORMATION WE HAVE RIGHT NOW. OKAY.

KEEP IN MIND, THIS ISN'T US. SO THESE AREN'T THE ONLY REASON DATES THAT ARE INVIOLATE.

SO THE ONLY REASON I READ THOSE IS JUST BECAUSE COMMISSIONER JESTE ASKED IF THERE IS AN EXAMPLE, AND I WANTED TO SHOW HIM AN EXAMPLE SO THAT WE ALL HAVE AN IDEA OF WHAT IT IS THAT WE'RE TRYING TO ACHIEVE.

THAT'S ALL. DO WE HAVE ANY ADVICE FOR COUNCIL OR WERE THE USELESS COMMITTEE? NO, THAT'S WHAT I. IF WE DON'T HAVE ANY ADVICE, THEN WE DON'T.

IN MY EXPERIENCE, CITY STAFF DOES A PRETTY GOOD JOB OF IDENTIFYING WHERE THEY THINK THINGS NEED TO GO AND WHERE THEY NEED TO GET TO.

AS, AS MAJOR PROJECTS OVER THE NEXT THREE YEARS, WHETHER THEY CAN MAKE THE TARGET OR NOT, IT DEPENDS ON FINANCE AND PERSONNEL AND SO MANY THINGS.

THIS IS THIS. THESE ARE GOALS THAT THE DIFFERENT DEPARTMENT HEADS SET OUT.

IT'S VERY HARD TO SECOND GUESS WHAT THEY'RE DOING.

THAT'S TRUE. YEAH. IF WE DO NOT HAVE ANY ANYTHING ELSE WE CAN FILE? I JUST WANTED TO ADD THERE'S NO PUBLIC COMMENT OR PARTICIPANT ON ZOOM.

IF YOU CAN THINK OF ANYTHING EMAIL ME AND WE CAN CREATE A SUB COMMITTEE ON THIS.

IF I KNOW THIS IS KIND OF CAN'T CREATE A SUBCOMMITTEE UNLESS IT'S HERE, WE HAVE TO CREATE IT HERE BEFORE THEY CAN MEET.

WE DON'T HAVE THEN WE DON'T HAVE TO FORMALLY HAVE A SUBCOMMITTEE, BUT WE CAN CHAT ABOUT IT.

TWO PEOPLE CAN CHAT. YES, THREE PEOPLE CAN CHAT.

THREE PEOPLE. QUORUM CAN'T. YEAH. HOW WOULD YOU LIKE TO.

I'M JUST TRYING TO GAUGE HOW YOU WOULD LIKE TO PROCEED.

YOU DO? DO YOU WANT TO NOT HAVE ANY INPUT TO COUNCIL, OR DO WE WANT TO THINK AND MAYBE GIVE INPUT LATER? AT THIS PARTICULAR MOMENT IN TIME? I DON'T THINK I HAVE ANYTHING TO ADD.

SO I, I'M OPEN FOR WHATEVER ELSE YOU WANT TO DO, BUT.

OKAY. ANYONE ELSE DO YOU WANT TO THINK? MAYBE LATER.

COME BACK. YOU KNOW, YOU GO NEXT WEEK, YOU COME BACK AND SAY, OH, WE CAN DO THIS.

AND I DON'T WANT TO SAY, YOU KNOW. OH, NO, THE TIME IS UP.

YEAH. KEEP IN MIND IF 2 OR 3 PEOPLE GET TOGETHER AND TALK AND YOU COME UP WITH SOME IDEAS, YOU CAN PRESENT THEM TO THE CITY COUNCIL AS YOUR INDIVIDUAL IDEAS.

YOU CAN'T PRESENT THEM AS PART OF THIS COMMITTEE? YES. BECAUSE THIS COMMITTEE DIDN'T SET UP A IT DID NOT VOTE A SUBCOMMITTEE.

YES. AND WE'RE NOT AWARE OF WHAT YOU'RE DOING. SO WHAT WE THE OTHER ALTERNATIVE WOULD BE IF WE SEND IT TO STEPHANIE AND THEN STEPHANIE CAN SEND IT TO EVERYONE AND THEN GET YOUR CONCURRENCE THAT WAY. I DON'T THINK SO.

I DON'T THINK THAT WORKS. THAT'S DELIBERATE TO YOU? YEAH, BUT IF SHE SENDS THE SAME MATERIAL TO ALL OF US TO DECIDE ON, THEN WE'RE CIRCUMVENTING THE BROWN ACT.

I THINK IT WOULD BE IF SHE SENDS IT ALL AS INFORMATIONAL.

BUT YOU DON'T ACT UPON IT. AS LONG AS YOU DON'T.

AS INFORMATION, YEAH. IF SHE SEES YOU, IF SHE.

YOU KNOW, SHE'S NOT ENGAGING YOU TO HAVE A CONVERSATION.

SHE'S JUST ASKING. HEY, WOULD YOU BE OKAY IF WE, WOULD YOU BE OKAY IF WE, YOU KNOW.

WE MAY NEED TO ASK THE CITY CLERK. AS A POINT OF PROTOCOL, I TEND TO AGREE THAT IF WE'RE ASKING FOR ANY TYPE OF INPUT AT THAT POINT, IT BECOMES A DISCUSSION. YEAH, YEAH, I THINK IT'S ONLY ONE WAY.

SO IF AN INDIVIDUAL YOU WERE TO SEND IT TO STEPHANIE, SHE COULD JUST FORWARD IT TO CITY COUNCIL, I BELIEVE. AND TO THE REST OF THE GROUP. AND YEAH, TO THE REST OF THE GROUP, BUT NOT AS FAR AS CREATING THE DISCUSSION OR FEEDBACK ON WHAT IS

[02:40:07]

WE JUST CAN'T RESPOND TO HER. CORRECT. SO I THINK IF THE COMMISSION WAS IN AGREEMENT ON SPECIFIC THEMES OR SOMETHING THAT YOU WOULD LIKE TO ADDRESS ONE PERSON AND YOU WOULD ENTRUST A PERSON TO WRITE THAT LETTER, THEN WE COULD DO THAT. I THINK THAT WOULD BE THE LOGICAL APPROACH, BUT I THINK WE HAVE TO COME UP WITH A, AS STEPHANIE SAID, A THEME OR A TOPIC OR A SUBJECT CAN'T JUST MAKE IT OPEN ENDED AND SAY DREAM UP SOMETHING THAT WE'RE GOING TO SEND TO THE CITY COUNCIL.

NO, THAT'S WHY I'M WHAT? WHAT HAPPENED TO THE LETTER THAT WE WERE PUTTING TOGETHER FOR THE HOMELESS ADMINISTRATION OF THE HOMELESS? SO AFTER THAT LETTER AND WHICH WE WILL WE'RE GOING TO GO BACK AND THAT'S H1 AND WE'LL TALK ABOUT IS IT OKAY IF WE TALK ABOUT IT IN.

OKAY. WELL, I WAS JUST GOING TO SAY THAT FOR ME PERSONALLY, I THINK THAT'S A VERY STRATEGIC ITEM THAT, THAT THAT THE COUNCIL SHOULD BE MADE AWARE OF OUR FEELINGS.

WE'VE ALREADY TAKEN SOME STEPS TOWARDS THAT. SO IF WE'RE GOING TO BE PICKING THAT UP LATER THEN OKAY.

BUT OKAY, THE QUESTION IS DO WE WANT TO MAKE THAT PART OF OUR COMMENT REGARDING THE STRATEGIC PLAN, OR WE DO HAVE A AN AGENDA ITEM HERE THAT'S TO DISCUSS HOMELESSNESS FUNDING.

AND DO WE WANT TO MAKE IT A LETTER OR OTHER COMMUNICATION DIRECTLY RELATED TO THAT AGENDA ITEM.

GOOD. GOOD QUESTION. I JUST WANTED TO RAISE THE FACT THAT I THOUGHT THAT WAS AN IMPORTANT ISSUE.

I MEAN, WE'VE GOT TWO MORE AGENDA ITEMS HERE THAT.

YOU COULD SAY SOMETHING ABOUT IT IN THE STRATEGIC PLAN, BUT I DON'T KNOW IF THAT'S WHERE WE WANT TO SPEND OUR ENERGY.

WE CAN JUST MAKING THE SUGGESTION THAT WE TAKE IT FORWARD, THAT HOW IT THE FORMAT OF IT, YOU KNOW, IS UP TO UP TO THE GROUP TO MAKE THE DECISION ON, YOU KNOW, WE CAN.

NO, THAT'S THANK YOU FOR REMINDING THAT. BUT WE CAN ADD THAT WE RECOMMEND THAT WE TRACK EXPENSES FOR HOMELESS PROJECT. WHAT DID WHAT DID WE DECIDE AT THE LAST MEETING TO DO ON THAT? THAT'S THE QUESTION JUST CAME UP. DIDN'T WE ALREADY DECIDE TO SEND A LETTER TO THE CITY COUNCIL? A LOT HAPPENED, AND I SHOULD HAVE. CAN WE PUT THIS MEETING ON PAUSE AND GO TO H1 I1 IS THAT WHERE IT WAS? IT IS BECAUSE WE NEED THAT'S I SHOULD HAVE INSTEAD OF GOING TO J3, I SHOULD HAVE GONE TO H1 AND I DID NOT DO THAT AND THAT'S MY FAULT.

OH. SO ON THE AGENDA WE SKIPPED I ONE AND I TWO AND WE NEED TO GO BACK TO THOSE.

SO CAN WE PAUSE THIS ITEM AND THEN WE COME BACK TO IT, AND WE GO BACK TO I, I WHAT IS IT ONE.

YEAH. JUST FOR CLARIFICATION, WOULD YOU WANT TO SORT OF CLOSE THIS ITEM AND JUST CONTINUE ITEM I ONE BECAUSE WE COULD DO THAT.

SO WE SORT OF KEEP AN ORDER. WE WANT TO PAUSE.

I DON'T WANT TO CLOSE IT BECAUSE WE WANT TO COME BACK TO IT DEPENDING ON HOW I TWO AND I TWO GOES, OKAY JUST AS A MOTION, MAYBE WE SHOULD JUST DO A MOTION.

WE HAVE A MOTION TO CONTINUE THIS ITEM AFTER I2.

SO MOVED. I SECOND. ALL IN FAVOR? AYE. JUST BECAUSE WE TOOK A MOTION TO APPROVE THE ORDER OF THE AGENDA.

I SKIPPED A COUPLE OF ITEMS. I SHOULD NOT HAVE.

THAT WAS. THAT'S MY FAULT. OKAY. ITEM I TWO, I1, HOMELESSNESS FUNDING.

[I. ITEMS CONTINUED FROM PREVIOUS AGENDAS]

HOW MUCH GRANT WE HAVE RECEIVED? AND IS THIS HOW MUCH WE'VE RECEIVED? SINCE WHEN? SO THESE ARE OUR CURRENTLY ACTIVE GRANTS.

OKAY. AS OF THIS FISCAL YEAR. SEVERAL OF THESE GRANTS WE RECEIVED IN THE PRIOR FISCAL YEAR.

BUT FOR SIMPLICITY AND FOR KIND OF A SNAPSHOT, WHICH I BELIEVE IS WHAT THE COMMISSION WAS LOOKING FOR, I JUST PULLED OUR ACTIVE CURRENT GRANTS UP SO WE CAN TALK THROUGH THESE.

I CAN GIVE YOU A LITTLE IDEA OF WHAT WE YOU KNOW, WHAT THE RELATED SPENDING IS, BUT YOU CAN SEE WE HAVE ABOUT FOUR A LITTLE OVER 4 MILLION IN OUR ACTIVE GRANTS. WE SPENT ABOUT 36% OF THAT TO DATE.

NOW, SO THE NEXT, YOU KNOW, I REMEMBER WHEN WE WHEN I REQUESTED THIS, IT WAS KIND OF WE WERE DOING BABY STEPS BECAUSE WE'RE TRYING TO

[02:45:10]

SO THE NEXT STEP WOULD BE THE SPEND THROUGH MARCH 2025.

SO OUT OF 4 MILLION, WE HAVE SPENT 1.5 MILLION THUS FAR.

THAT MEANS WE STILL HAVE 2.5 LEFT. SO OUT OF THESE THIS 1.5, CAN WE IDENTIFY WHERE IT. I MEAN I'M IMAGINING FOR AUDITING REASONS BECAUSE THIS IS GRANT MONEY.

WE HAVE THAT INFORMATION WHERE THAT MONEY WENT? 100% HAVE IT. YES. OKAY. SO FOR NEXT TIME, CAN WE LIST MAYBE THOSE? UNLESS YOU HAVE DO YOU WANT LIKE AN INDIVIDUAL INVOICE PAYMENT AGAINST EACH ONE OF THESE LINE ITEMS. SO FOR EXAMPLE IF YOU IF YOU PAID COMPANY XYZ $1 MILLION THEN JUST THAT COMBINED $1 MILLION.

SURE. I'M VERY HAPPY TO DO THAT. I CAN TELL YOU IN GENERAL WHAT ALL OF THESE WHAT ALL THESE ARE SPENT ON THEY ARE PRETTY TARGETED. SO THEY'RE GOING TO BE FOR 1 OR 2 VENDORS, EACH OF EACH OF THEM.

SO IF WE JUST START FROM THE, THE TOP THE THIS IS OUR PALLET SHELTER OPERATIONS.

SO THIS IS OUR OPERATOR. THIS IS LIKE A THE OPERATING COST TO MANAGE THE SHELTER.

SO THERE'S A SPECIFIC GRANT FOR THAT. AND THAT'S PLHA IS A GRANT THAT WE RECEIVE FROM THE STATE.

YES. OKAY. YEP. AND THAT'S THE GRANT FUNDS THAT WE USE TO OPERATE THE SHELTER.

THE NEXT ONE YOU SEE ON THERE. SO WHEN YOU SAY OPERATE THE SHELTER, BUILD THE SHELTER.

WE BUILT THE SHELTER. NO, IT IS NOT CAPITAL. IT IS JUST TO.

IT'S TO OPERATE. SO IT IS A STAFF TO MAINTAIN THE SHELTER.

I'D HAVE TO LOOK AT, YOU KNOW, SPECIFICALLY, WE CAN FIND THE CONTRACT.

WHEN WE WROTE A CHECK, WHERE DID IT GO TO? WHO DID WE WRITE A CHECK TO? I'D HAVE TO LOOK AT THE ORGANIZATION. YES. SO THAT'S EXACTLY WHAT I'M ASKING FOR.

SURE. SO, YEAH. AND CORRECT ME IF I'M WRONG, BUT IF WE'RE CHARGING THINGS AGAINST A GRANT, THERE ARE SPECIFIC DATA ELEMENTS THAT ARE REQUIRED THAT GET SENT TO THE GRANTING BODY IN ORDER TO IDENTIFY.

IT'S NOT WHO WE WROTE A CHECK TO, IT'S WHAT ARE WE CHARGING TO THE GRANT.

SO WE. IF WE'RE CHARGING INTERNAL PERSONNEL TO THE GRANT, THERE'S SOMETHING THAT SAYS JOE SPENT TEN HOURS WORKING ON THIS.

THEREFORE THE CHARGE IS X. MY UNDERSTANDING IS THAT WE'RE WE WERE I DON'T THINK WE'RE.

SO TO KEEP IT SIMPLE FOR NOW I AM BECAUSE THAT PART IS VERY DIFFICULT FOR STAFF.

THE STAFF PART IS DIFFICULT FOR STAFF. I WAS INITIALLY WHAT I WAS ASKING FOR IS JUST PROVIDE TO US THE, THE, THE PURCHASE ORDERS THAT YOU HAVE PAID FOR.

WELL, BUT IF THEY CAN PROVIDE THAT, THAT'S. STEPHANIE, CORRECT ME IF I'M WRONG, BUT IF SHE CAN DO THAT, DOES THAT GO AGAINST THE GRANT. DON'T NECESSARILY TIE BACK TO A PURCHASE ORDER.

THEY WOULD IF IT'S AN INTERNAL CHARGE, THERE'S NO PURCHASE ORDER.

SO I WOULD SAY YOUR FIRST YOUR FIRST STATEMENT IS CORRECT THAT THE GRANTING AGENCY WILL SPECIFY WHAT WE CAN SPEND THE MONEY ON. SO IF WE WERE CHARGING INTERNAL SERVICES, INTERNAL STAFF TIME TO THE GRANT, WE WOULD DO EXACTLY AS YOU SAID AND WE WOULD PRESENT THAT TO THE GRANTING ORGANIZATION.

SO IN THAT CASE, WE WOULD ALREADY HAVE THAT INFORMATION BECAUSE WE TRACK IT TO PROVIDE TO THE GRANTOR.

SO IN THESE IN THIS CASE, I DON'T BELIEVE THAT OUR IT DEPARTMENT IS PUTTING WI-FI IN THE IN THE PALLET SHELTER AREA THAT WI-FI THE STAFF TIME, THE CONNECTIVITY. HOWEVER, IT'S CONNECTED BY PHONE LINES OR WHATEVER.

ALL OF THOSE THINGS WOULD GET CHARGED AGAINST A GRANT ITEM, BUT NOT ALL OF THOSE THINGS GENERATE PURCHASE ORDERS.

WILL IT, THOUGH? WILL THE STAFF TIME GET CHARGED THROUGH THAT GRANT? I DON'T IF IT'S ALLOWED IN THE GROUND, BUT THEY'RE NOT DOING THAT.

AND THAT'S WHAT SHE'S SAYING. WELL, THAT'S WHY I'M HAVING THIS.

THAT'S WHY I'M HAVING THIS. THAT'S WHY I'M DOING BABY STEPS.

SO MY UNDERSTANDING AND PLEASE CORRECT ME IF I'M NOT UNDERSTANDING IT CORRECTLY.

THE, THE SUFFERING EXAMPLE THAT YOU PROVIDED, THE SOFTWARE WOULD BE CHARGED TO THIS ACCOUNT, BUT NOT THE STAFF. IT DEPENDS ON THE GRANT. IT DEPENDS ON THE GRANT.

OKAY. SO IF THE, IF IT DEPENDS ON THE GRANT. OKAY.

[02:50:02]

IT DEPENDS ON THE GRANT. AND AGAIN WE HAVE ALL THAT INFORMATION IN THE BACKUP.

IT IS NOT IN FRONT OF YOU. NOT BECAUSE I DON'T WANT TO SHARE THE INFORMATION, NOT BECAUSE THE CITY DOESN'T HAVE IT.

IT IS LONG AND TEDIOUS, AND WHEN YOU LOOK AT IT DOES NOT NECESSARILY.

THAT'S WHY IT'S NOT THE MOST USER FRIENDLY. I UNDERSTAND.

THAT'S WHY I DID NOT WANT TO GO THAT ROUTE. AND WHAT I'M TRYING TO DO RIGHT NOW EXCLUDE STAFF TIME AND JUST FOCUS ON THE PURCHASE ORDERS. WELL, SURE. WHAT ARE WE TRYING TO GET AT? BECAUSE I'M NOT SURE THAT WE WANT TO DETERMINE WHETHER WE APPROPRIATELY SPENT GRANT MONEY, BECAUSE WHAT WE'RE DOING IS WE'RE CORRELATING EXPENSES TO GRANTS.

WE'RE NOT CORRELATING EXPENSES TO WHAT IS THE COST OF DOING BUSINESS.

BUT THAT'S, THAT'S THAT GIVES US A DATA POINT TOWARDS THAT.

NOW WHAT HAPPENED AND THIS IS THAT YOU MIGHT NOT OH, YOU PROBABLY DON'T KNOW THIS.

AND I SHOULD HAVE SHARED. SO AFTER OUR MEETING, I GUESS THERE ARE PEOPLE WHO WATCH OUR MEETINGS WHICH I WAS NOT AWARE OF.

I WAS CONTACTED BY SEVERAL PEOPLE AND THEY WERE VERY UPSET THAT AS A COMMITTEE.

WE ARE UNABLE TO TRACK OUR OUR HOMELESS EXPENSES BECAUSE THAT'S OUR ROLE IS TO OVERSEE AND ADVISE AND FIGURE IT OUT.

WE HAD ANOTHER COMMITTEE CHAIR AUSTIN CARMICHAEL, WHO IS THE CHAIR FOR SAFETY PUBLIC SAFETY COMMITTEE.

BASICALLY, HE WITH WITH I GUESS, SOMEONE THAT HE WORKS WITH CALCULATED AND CAME UP WITH A LOT OF FIGURES AND IT'S ALL STEPHANIE, WOULD YOU PLEASE JUST TELL ME WHICH FILE? WOULD YOU LIKE THE LONG, LIKE, WORD DOCUMENT FILE? WE ALSO HAVE THE EXCEL SHEETS. I'D LIKE TO SHARE ALL OF THEM.

SO LET'S START WITH WHICHEVER WILL. SO HE HAS A SUMMARY.

HE WROTE A SUMMARY OF WHAT HE'S DONE. HE SPENT A LOT OF TIME ON THIS.

SO THIS IS I MEAN, I'M NOT GOING TO READ THIS NOW BECAUSE THIS WAS IN THE FILES.

CAN YOU OPEN THE NEXT ONE, PLEASE? I JUST WANT TO GIVE EXAMPLES.

WHAT WAS SENT. JUST A QUICK QUESTION. WHAT ACTUALLY ARE WE LOOKING AT HERE? SO HE DID THE NUMBERS. OH, HE IS WHO I JUST SAID AUSTIN CARMICHAEL, WHO IS THE CHAIR OF PUBLIC SAFETY.

REDONDO. YES. OKAY. YES. SO HE TOOK IT UPON HIMSELF TO WRITE UP A LITTLE.

YES. OKAY. AND HE CALCULATED EVERYTHING. OKAY.

AND WE'RE JUST GETTING IT RIGHT NOW. NO, WE HAD THIS.

WE HAD IT DURING THE LAST MEETING, BUT WE DIDN'T HAVE IT IN THE IN OUR FILES.

IT WAS NOT PUBLIC RECORD. I COULDN'T SHOW IT TO YOU, BUT WE HAD IT EVEN IN THE LAST MEETING, WHICH BUT I DID NOT KNOW BECAUSE I HAD NOT SEEN IT.

NO ONE HAD GIVEN IT TO ME. BUT HE SENT IT TO US PRIOR TO LAST MEETING.

OKAY. SO HE WENT AND THEN BECAUSE HE I GUESS PEOPLE ARE WATCHING AND THEY WERE TRYING TO HELP.

AND THEN I ATTENDED HIS MEETING. AND IT WAS THE HOMELESS SECTION.

SO ON THE BOTTOM, YOU KNOW, TOTAL CALCULATED.

SO HE WAS ABLE. MY POINT IS, SO HE SPENT A LOT OF TIME, A LOT OF ENERGY OBVIOUSLY, ON THIS.

AND HE WAS ABLE TO COME UP WITH A NUMBER. SO IF HE'S ABLE TO COME UP WITH A NUMBER WHO DOESN'T EVEN WORK WITH IN THE CITY STAFF SHOULD BE ABLE TO COME UP WITH THAT NUMBER.

WELL, HE MADE SOME, SOME VERY HE MADE SOME VERY STRONG CASES, BUT THEY'RE CALCULATED NUMBERS AND I DON'T KNOW HOW VALID THEY ARE. THAT'S THE REASON WE HAVE A FINANCE DEPARTMENT.

AND IT'S NOT OUR ROLE AS THE BUDGET AND FINANCE COMMITTEE TO VALIDATE THESE NUMBERS.

WE'RE NOT VALIDATING THAT. BUT I WANTED TO GIVE YOU AN EXAMPLE THAT THIS CAN BE DONE.

WE DON'T NEED WE DON'T NEED AI TO DO THIS. WE HAVE ALREADY MADE OUR POINT.

SO LET'S PROCEED. YES, LET'S. BUT MY POINT IS, IT CAN BE DONE.

IT JUST. I MEAN, THIS, YOU KNOW. OKAY, BUT LET ME POINT OUT THAT WHAT YOU'RE SHOWING US HERE IS EXPENSES.

IT'S NOT GRANTS. IT HAS NOTHING TO DO WITH GRANTS.

THIS IS HOW MUCH DOES THE CITY SPEND. AND THAT'S BEEN THE QUESTION ALL ALONG, NOT WHETHER IT'S PAID FOR BY GRANTS.

IT'S HOW MUCH DOES THE CITY SPEND? YES. SO FROM THAT PERSPECTIVE, THIS IS A GREAT DOCUMENT.

YES. BECAUSE IT'S TALKING ABOUT WHAT WE'VE BEEN ASKING ABOUT.

YES. AND NOW I WANT TO COME BACK TO THE LETTER THAT WE PUT TOGETHER.

AND AFTER SEEING THESE NUMBERS, THEN I REALIZED THAT AND I THOUGHT MORE ABOUT IT.

[02:55:09]

IF SOMEONE GOES THROUGH THESE DOCUMENTS AND EXTRACTS INFORMATION, IT CAN BE DONE.

NOW, I'M NOT SAYING THIS IS VALID. THAT'S NOT MY THAT'S NOT MY ROLE.

AND I HAVE NOT GONE THROUGH THESE NUMBERS. BUT THIS DEMONSTRATES THAT IT CAN BE DONE.

THERE IS THERE IS NO LACK OF TECHNOLOGY BECAUSE OUR LETTER WAS RECOMMENDING THAT WE HAVE THIS TECHNOLOGY THAT CAN HELP TO TRACK HOURS AND WHERE THEY SPEND. AND I THOUGHT FURTHER ABOUT IT, THERE IS NO WAY WE ARE GOING TO ANY UNION IS GOING TO AGREE THEIR STAFF TO GO AT THE END OF A DAY AND TRACK THEIR HOUR.

WHAT DID THEY DO EVERY SINGLE HOUR? THAT'S NOT GOING TO HAPPEN IN GOVERNMENT.

WELL, I DON'T THINK. YOU DON'T THINK? I DON'T THINK. [INAUDIBLE] THE ONLY THE ONLY THINGS THAT YOU CAN FROM A PERSONAL STANDPOINT, MY PERSPECTIVE IS THE ONLY THING THAT YOU CAN POSITIVELY, POSITIVELY ATTRIBUTE AS A COST OF THIS PROGRAM IS IF SOMEONE IS ASSIGNED TO THIS PROGRAM. SO IF YOU HAVE A QUALITY OF LIFE OFFICER AND IN HIS STATED DUTIES, HE'S MEANT TO BE ON SITE, THEN YOU CAN ATTRIBUTE HIS SALARY TO IT. OTHERWISE, BECAUSE THE POLICE DEPARTMENT SHOWS UP TO AN INCIDENT AT THAT LOCATION, YOU CAN'T SAY, WELL, THAT'S AN HOUR AT $45 AN HOUR.

RIGHT, EXACTLY. SO WE'VE GOT WE'VE GOT ONE SIDE THAT SAYS EXACTLY.

WE CAN IDENTIFY THIS PERSON IS AT THAT PLACE DOING THIS JOB, OR THIS PERSON IS SITTING IN CITY HALL DOING PAPERWORK RELATED TO THIS.

YOU CAN DO THOSE AND YOU CAN IDENTIFY THEM. BUT YEAH, YOU CAN'T.

YOU CAN'T GET TOO GRANULAR IN SOME OF THIS DATA THAT'S GOING WAY BEYOND OUR YES AND OUR CHARTER.

THE FIRE DEPARTMENT AND POLICE DEPARTMENT HAVE PERSONNEL THAT ARE ON DUTY ON SHIFT, AND THEY RESPOND TO INCIDENTS WHILE THEY'RE ON DUTY AND ON THAT SHIFT.

I THINK BOTH MIKE AND STEPHANIE HAVE AGREED THAT THEY WILL PRESENT US THE NUMBERS THAT WE'RE LOOKING FOR.

SO LET'S LEAVE IT THERE AND THEN SEE WHAT THEY COME UP WITH.

SO NOW, DO YOU WANT TO GO? DO YOU WANT TO READ THE LETTER TO THE REST OF THE COMMITTEE THAT WE HAVE SO FAR TO SEE IF IT MAKES SENSE? NOW, KNOWING THIS, THAT WE KNOW, DOES IT STILL MAKE SENSE FOR US TO SEND THAT LETTER? AND I'M LOOKING FOR THAT LETTER RIGHT NOW. WELL, MIKE UNDERSTANDS WHAT WE WANT.

THE LETTER WAS GOING TO GO TO WHAT? CITY COUNCIL? YES. AND THE CITY COUNCIL HAVE AN IDEA OF WHAT WE'RE ASKING FOR.

IF THEY DON'T, DO THEY HAVE AN IDEA BECAUSE NO ONE COMMUNICATED TO THEM? PARDON . WE HAVE NOT COMMUNICATED TO THEM, SO THEY DON'T KNOW.

IF WE HAVE NOT COMMUNICATED THIS TO CITY COUNCIL, THEN WE STILL NEED SOME WAY OF DOING THAT, BECAUSE WE WANT TO MAKE IT CLEAR TO THEM AND MAKE IT CLEAR THAT WE THINK TO THE EXTENT THEY CAN PROVIDE INPUT ON THIS AND TO MAKE IT HAPPEN, WE WANT TO MAKE THAT KNOWN. SO THERE SHOULD BE SOME COMMUNICATION TO CITY COUNCIL.

I DON'T KNOW WHAT IT SHOULD BE, BUT RIGHT NOW, CITY COUNCIL DOESN'T KNOW THAT WE'RE EMBARKED ON THIS OR THAT WE WANT TO KNOW IT.

WE STARTED A LETTER AND WORKED ON THE LETTER DURING THE LAST SINCE OUR LAST MEETING, AND I THINK IT WOULD BE ADVANTAGEOUS FOR US TO, IF WE'VE GOT A COPY OF IT OR CAN READ IT, BECAUSE I THINK THAT WAS OUR INTENT TO DEVELOP A LETTER TO SEND TO THE CITY COUNCIL EXPRESSING OUR CONCERN THAT WE DO GO FORWARD WITH AN ACCOUNTING OF. I THOUGHT THAT WAS YOUR QUESTION YOU JUST ASKED.

YES. YEAH. SO IS IT OKAY IF I READ THE LETTER? SURE. OKAY. SO AND I'M GOING TO GET TO THE CORE OF IT.

CURRENTLY HOMELESS SERVICES ARE BEING EXECUTED ACROSS VARIOUS DEPARTMENTS WITHIN THE CITY, BUT STAFF HAS INFORMED US THAT THERE IS NO CONSOLIDATED SUMMARY OF PROGRAMS AND ASSOCIATED EXPENSES.

THIS IS PRIMARILY DUE TO ABSENCE OF A UNIFIED SYSTEM FOR TRACKING AND MONITORING GRANTS, EXPENSES AND PERFORMANCE ACROSS THESE EXPENDITURES. AS A RESULT, THE FINANCE DEPARTMENT HAS INDICATED THAT THEY WERE UNABLE TO PROVIDE EVEN A ROUGH ESTIMATE OF THAT TOTAL COST FOR THE HOMELESS SERVICES PROGRAM.

TO ADDRESS THIS GAP, WE RECOMMEND THE DEVELOPMENT AND IMPLEMENTATION OF A COMPREHENSIVE SYSTEM THAT WOULD ENSURE ACCOUNTABILITY FOR GRANT PROVIDERS. SO WE'RE RECOMMENDING A COMPREHENSIVE SYSTEM, AND THE PURPOSE OF THE SYSTEM IS TO ENSURE ACCOUNTABILITY.

[03:00:07]

PROVIDE CITY MANAGER WITH A QUANTITATIVE FEEDBACK LOOP TO ASSESS RESOURCE ALLOCATION AND SPENDING.

OFFER DEPARTMENTS THE NECESSARY VISIBILITY TO ALLOCATE RESOURCES EFFECTIVELY.

AND PROVIDE TRANSPARENCY TO THE PUBLIC. IS THAT STILL VALID AFTER WE KNOWING THIS? IS THIS SOMETHING? SHOULD WE FORMALIZE IT? MIGHT AS WELL SEND IT.

YEAH. YEAH. AGAIN, I THINK SO BECAUSE I THINK UNLESS WE DO SOMETHING LIKE THIS, THEN WE DON'T HAVE A SYSTEM THAT'S GOING TO DO THIS ON A CONSISTENT BASIS.

IT'S FINE TO HAVE SOMEONE COME IN AND PITCH, YOU KNOW, DO SOME WORK ON, ON THE SIDE, YOU KNOW, STAFF. BUT I THINK MAKING THE POINT THAT IT NEEDS TO BE AN ONGOING.

I THINK BUDGETARY PROCESS. OKAY. ON ONE HAND, THE LETTER OVERSTEPS THE BOUNDS OF WHAT WE'RE MEANT TO BE DOING.

AND ON THE OTHER HAND, ONCE AGAIN, WE'RE SOMEHOW MISSING THE POINT BY TYING IT BACK TO GRANTS. AND WHAT WE'RE TALKING ABOUT HAS NOTHING TO DO WITH GRANTS.

IT HAS TO DO WITH HOW MUCH IT COSTS. THE FACT THAT.

BUT GRANT IS PART OF THE COST. YEAH. I THINK MAYBE BY EXPANDING IT TO INCLUDE THE OTHER, THE EXPENSE SIDE SOURCE AND APPLICATION OF FUNDS IS KIND OF WHAT WE'RE TALKING ABOUT. LOOK, WHAT WE WANT, REGARDLESS, WE WANT IS A CHART WHICH SHOWS EVERY EXPENDITURE FOR THE HOMELESS, EVERY EVERYTHING THE CITY CUTS A CHECK FOR THE HOMELESS LISTED HERE AND THEN SHOW HOW MUCH OF THAT IS PROVIDED BY A GRANT AND HOW MUCH OF IT IS PROVIDED OUT OF THE GENERAL FUND. THOSE THREE ITEMS. THAT'S EXACTLY WHAT WE NEED. AND WHAT WE'VE BEEN TOLD REPEATEDLY IS NOTHING COMES OUT OF THE GENERAL FUND WITH THE EXCEPTION OF TWO POSITIONS IN THE POLICE DEPARTMENT.

AGAIN, THAT'S WHAT WE WANT TO KNOW. WE WANT TO SEE THAT TOTAL AND UNDERSTAND HOW MUCH WE'RE PAYING OUT OF THE GENERAL FUND, HOW MUCH WE'RE GETTING BY GRANTS, AND THEREFORE OUR EXPOSURE IN CASE THOSE GRANTS DIE.

YES, YES, THAT'S EXACTLY WHAT WE WANT TO KNOW.

YES. ONLY. ONLY THOSE THREE ITEMS. ISN'T THAT RIGHT? YEAH. BEYOND THAT, WE REALLY DON'T WANT TO GO INTO TOO MANY DETAILS BECAUSE THAT WOULD, YOU KNOW, BE A NIGHTMARE FOR THEM AS WELL AS FOR US. BUT THE CHART, THE CHART WE WANT TO SEE INCLUDES BOTH GRANTS AND GENERAL FUND.

GENERAL FUND EXPENSE? YES, YES, IT SHOULD INCLUDE ANYTHING.

THAT'S ANYTHING. AND IDENTIFY WHAT IT IS THE CITY PAYS, WHETHER IT'S A CAPITAL EXPENDITURE AND OPERATING EXPENDITURE.

WE CAN SEPARATE CAPITAL AND OPERATING. BUT THAT TELLS US WHAT WE NEED, WHAT OUR WHAT OUR EXPOSURE IS PRETTY MUCH LIKE THE CAPITAL IMPROVEMENT PROJECTS WE TALKED ABOUT, YOU KNOW, DON'T WE DON'T WANT TO DRILL INTO SOMETHING TOO DEEP BECAUSE THAT'LL TAKE FOREVER.

JUST GIVE US THE BROAD OUTLINE. AS COMMISSIONER, THIS IS A AS A RECOMMENDATION TO COUNCIL WHAT WE NEED TO EVENTUALLY HAVE. WE JUST HAD A LONG CONVERSATION WITH SHOULD REALLY BE THE CITY MANAGER AND THE FINANCE DIRECTOR.

IT'S UP TO THEM. I DON'T KNOW WHAT THE CITY COUNCIL IS GOING TO DO ABOUT IT.

YEAH. THAT WAS I THINK YOU'RE MAKING THE SAME POINT I WAS GOING TO MAKE.

WE JUST HAD A LONG CONVERSATION WITH THE CITY MANAGER AND THE FINANCE DIRECTOR, AND I THINK THEY UNDERSTAND WHAT WE'RE ASKING FOR, AND THEY'VE INDICATED THAT WE'RE PROBABLY NOT GOING TO GET THAT BETWEEN NOW AND THE TIME THE BUDGET IS APPROVED IN THE END OF JUNE, BECAUSE THERE'S A LITTLE TOO MUCH WORK GOING ON. YEAH, BUT THEY'RE AWARE OF IT.

AND MY QUESTION WOULD BE, IF WE SEND A LETTER LIKE THAT TO THE CITY COUNCIL RIGHT NOW, WHAT ARE WE LOOKING FOR THE CITY COUNCIL TO DO THAT'S GOING TO CHANGE THE OUTCOME? NOTHING IN THIS CYCLE. HAVE STAFF ALLOCATE TIME TO DO TO TRACK HOMELESS.

YEAH. BUT TO YOUR POINT, THE CITY MANAGER AND THE DIRECTOR OF FINANCE ALREADY KNOW THAT THEY KNOW.

THEY KNOW EXACTLY WHAT WE WANT. DO WE GAIN ANYTHING BY TELLING CITY COUNCIL THE SAME THING? BECAUSE WE CANNOT LIE AND SAY THIS HASN'T BEEN DONE.

WE CANNOT DIRECT STAFF. WE CANNOT TELL STAFF WHAT TO DO.

NO, BUT WE HEARD THEM BOTH SAY THAT THEY UNDERSTAND WHAT THE ISSUE IS. THEY UNDERSTAND, BUT ARE THEY GOING TO DO IT? AND THEY'RE WILLING TO COME BACK TO US AND DO THAT. WELL, THEY DIDN'T SAY THEY WOULD NOT BE ABLE TO DO IT WITHOUT CITY COUNCIL'S PERMISSION.

BUT THEY WERE SAYING THEY CAN'T DO IT. REMEMBER IN THE LAST MEETINGS HOW MANY MEETINGS WE'VE HAD, WE'VE SPOKEN ABOUT THIS. NOW I THINK, NOW WE'RE GETTING CLOSER TO.

I'M NOT SURE THEY'RE SAYING THEY CAN'T DO IT. I'M SAYING THAT'S WHAT THEY'RE SAYING. IT'S DIFFICULT TO DO AND THAT WE DON'T HAVE THE SYSTEM SET UP NOW TO DO IT. AND WE DON'T HAVE

[03:05:03]

YOU DON'T HAVE A SYSTEM. THEN CITY COUNCIL, PLEASE SHARE OUR CONCERN AND THEN TAKE STEPS TO, TO AFFECT THIS BUDGET PROCESS. WHAT WE KNOW FROM TONIGHT IS THAT THE CITY MANAGER WHO DIRECTS THE FINANCIAL STAFF, HAS SAID, WE'RE GOING TO DO IT. WE JUST HAVEN'T DONE IT YET.

SO AND WE'VE GOT THIS TRACK ON MY INITIAL STATEMENT, I DON'T THINK GOING TO THE CITY COUNCIL WILL JUST MUDDY UP THE WATER.

YEAH, I DON'T KNOW THAT TELLING CITY COUNCIL NOW.

AND THAT'S WHY I DID NOT SEND IT BECAUSE I WANTED TO MAKE SURE WE'RE THINKING TOGETHER AND MAKING THE RIGHT CALL.

THAT'S WHY I DID NOT SEND. I'D SAY WE CAN THE LETTER AND DON'T DO IT.

QUESTION HOW DOES THE CITY ATTORNEY'S DEPARTMENT FIT INTO THIS SINCE HE'S NOT SUPERVISED BY THE CITY COUNCIL? WELL, THE MAJOR PART OF THE EXPENSES SEEM TO BE IN THAT AREA THAT THE COURT IN THE YOU KNOW, THE NAVIGATOR AND ALL THOSE REPORT UP TO THE TO THE CITY.

YOU HAVE ACCESS TO THAT THOSE EXPENSES FROM THE CITY ATTORNEY'S OFFICE, RIGHT? YES. SO YOU CAN BREAK THAT OUT, OF COURSE, IN THE CHART WE'RE TALKING ABOUT AND SHOW WHAT'S COMING OUT OF THE CITY.

CITY ATTORNEY'S OFFICE. YES. AND EXPENDITURES.

SO WE DON'T NEED ANYTHING ELSE OTHER THAN YOU KNOWING THAT AND LOOKING FOR IT.

YEAH. AND AS A CITY MANAGER SAID, I MEAN, WE HAVE BEEN TALKING TO THE CITY ATTORNEY'S OFFICE ABOUT THIS.

IT'S OBVIOUSLY BEEN A PRETTY BUSY COUPLE OF WEEKS FOR THEM WITH THE TRANSITION AND EVERYTHING ELSE. THEY ARE VERY AWARE OF IT.

MIKE'S AWARE OF IT. I'VE BEEN BRINGING IT UP TO HIM FOR A WHILE.

SO AGAIN, THIS IS SOMETHING WE CAN DO. IT TAKES SOME TIME TO DO IT WELL AND TO GIVE YOU A GOOD NUMBER.

AND THAT'S WHAT WE'D LIKE THE TIME TO DO. WE DON'T WANT IT.

WELL, RIGHT NOW WE JUST EVENTUALLY WE WANT IT WELL, BUT FOR NOW, WE JUST WANT ROUGH NUMBERS.

AND FOR COMMISSIONER SHERBIN AND HE'S THE ONE WHO DRAFTED THE INITIAL LETTER.

THE STAFF TOLD US THEY DON'T HAVE THE SYSTEM.

I MEAN, EVEN YOU SAID THAT. THAT'S WHAT THEY TOLD US.

THEY DON'T HAVE THE SYSTEM TO DO IT. NOW, IF THE SYSTEM OR THE STAFF, THEY DON'T HAVE THE SYSTEM, THEY SAID THEY DON'T HAVE THE SYSTEM TO GET THEY DON'T HAVE THE SYSTEM.

SO THEY HAVE TO APPLY STAFF. CAN I CLARIFY ONE THING ABOUT THE SYSTEM? I DON'T KNOW IF THIS IS OVERSTEPPING. THE ONLY POINT I MEANT TO MAKE ABOUT THE SYSTEM IS JUST DEPENDS ON THE GRANULARITY OF DATA THAT YOU ARE LOOKING FOR. IF WE'RE LOOKING FOR THIS EXTREME GRANULARITY WHERE EVERYBODY IS APPLYING THEIR STAFF TIME ON A PROGRAM BASIS.

WE DO NOT HAVE A SYSTEM THAT DOES THAT. OUR BUDGET IS NOT SET UP TO DO THAT.

THEREFORE THAT IS THAT'S SOMETHING THAT I MEAN, WE COULD MAKE ESTIMATES, RIGHT? YOU CAN DO EVERYTHING WITH ESTIMATES. I'VE SAID THIS SEVERAL SYSTEM.

HOLD ON ONE MOMENT, STEPHANIE. AND I'VE SAID THIS SEVERAL TIMES IN SO MANY MEETINGS.

ROUGH ESTIMATE. THIS IS THE THIRD TIME I'M ASKING FOR ROUGH ESTIMATE.

AND THAT'S WHY I STARTED WITH THIS GRANT EXCEL SHEET THAT SAYS, OKAY, HOW MANY.

LET'S YOU KNOW, LET'S DO BABY STEPS. HOW MUCH, HOW MANY, HOW MUCH MONEY WE GOT IN GRANTS.

AND WHERE DID THAT MONEY GO? SO NOW WHAT I'M HEARING IS THAT THEY CAN DO IT.

IT'S NOT GOING TO BE GRANULAR. AND NO ONE EXPECTS ANYTHING LIKE THIS TO BE THAT GRANULAR.

SO THAT'S WHY I WAS WONDERING. THAT'S WHY I DID NOT SEND THE LETTER.

AND I WANTED TO DISCUSS WITH THE COMMITTEE. WITH THE COMMISSION.

WE DON'T NEED THAT GRANULAR. DO WE NEED TO TELL OUR COUNCIL TO TO PROVIDE A SYSTEM THAT THEY CAN DO GRANULAR WORK? I THINK COMMISSIONER WOODHAM SUMMARIZED IT VERY WELL.

HE SAID, YES, LET'S GO WITH THAT AND FORGET ABOUT THE CITY COUNCIL.

YES. I THINK BETWEEN MIKE AND STEPHANIE, THEY WILL GIVE US WHAT? OKAY. YEAH. MY SUGGESTION WOULD BE THAT WE TABLE THIS ITEM FOR THIS EVENING.

WE DON'T SEND THE LETTER. WE KEEP IT ON THE AGENDA FOR.

WE ASK STAFF TO BRING IT BACK TO US IN JULY. WE'VE BEEN TOLD REPEATEDLY FOR THE LAST TWO MONTHS, STAFF DOESN'T HAVE TIME TO GO DIGGING THROUGH DETAILS IN ORDER TO DO A SPECIAL REPORT.

WE'RE NOT DOING DETAILS. STILL, REMEMBER, THEY DON'T WE'RE NOT.

THEY ARE UP TO THEIR EYEBALLS. WE'VE BEEN TOLD REPEATEDLY, LET'S LEAVE THEM ALONE FOR A COUPLE OF MONTHS.

GIVE THEM A CHANCE TO GET THEIR WORK DONE. I'M SURE IF STEPHANIE IS BORED ONE AFTERNOON, SHE'D BE MORE THAN HAPPY TO SIT DOWN AND JUST GET IT DONE.

BUT THE POINT IS, IF IT'S NOT BROUGHT BACK TO US BEFORE THEN, IF WE'RE NOT SATISFIED WITH WHAT WE GET, IT'S ON THE AGENDA RATHER THAN IT BEING FILED.

BECAUSE ONCE IT'S FILED, IT WILL NEVER. NO. WE'RE NEVER IF WE.

THIS IS GOING TO BE AN AGENDA UNTIL WE HAVE A NUMBER.

[03:10:02]

SO THE MOTION. I HAVE A MOTION JUST FOR YOU. AND FOR STAFF, I JUST WANTED TO REMIND YOU, HOW LONG AGO WAS THIS, THAT YOU ASKED THIS? IT'S BEEN OVER A YEAR. JUST A REMINDER.

IT'S BEEN OVER A YEAR THAT HE'S ASKED THIS QUESTION.

WELL, WE'RE GETTING IT. SOUNDS TO ME LIKE WE'RE GETTING PRETTY FOCUSED NOW. I THINK SO I THINK WE CAN ALL AGREE ON THAT.

LET'S CONTINUE IT AS AN AS AN AGENDA ITEM. YES.

I WANT TO FINISH THOUGH BEFORE WE BECAUSE WE'RE IN THE MIDDLE OF SOMETHING.

SO STEPHANIE, WOULD YOU PLEASE GO BACK TO THE EXCEL SPREADSHEET THAT YOU PUT TOGETHER, WHICH WAS GRANTS.

SO WOULD IT BE POSSIBLE? SO TO ADD TO THIS, WHERE THAT'S 472 WENT LIKE, WHAT? WHAT PO DID IT PAY? THAT'S WHERE WE STOPPED. ONE HUNDRED PERCENT, WE HAVE THIS INFORMATION AND WE CAN SHARE IT WITH YOU. MY I GUESS MY QUESTION IS WHERE DOES THAT FIT IN TERMS OF US PRODUCING THIS LARGER SUMMARY DOCUMENT THAT IS NOT GRANULAR.

TRANSPARENCY. IS THAT IN IN ADDITION TO? BECAUSE RIGHT NOW YOU'RE LACKING TRANSPARENCY.

SO WE WANT TO KNOW WHERE THOSE BIG SUMMARY I'M NOT ASKING FOR A BIG SUMMARY.

I'M ASKING FOR NOT GRANULAR INFORMATION, DATA REGARDING THE STAFF, BECAUSE THAT'S WHERE THE CHALLENGE IS.

BUT THE FUNDS THAT WENT TO THIRD PARTIES, THE PURCHASE ORDER THAT WENT TO THIRD PARTIES, THAT'S EASILY ATTAINABLE.

I MEAN, GET ME ACCESS TO YOUR MATERIALS AND I'LL DO IT.

I THINK WE HAD MOST OF THAT DETAIL IN THE ORIGINAL REPORT THAT YOU GAVE US.

WASN'T IT BROKEN DOWN? ALL THE DIFFERENT GRANT CATEGORIES AND, AND THE FUNDS THAT WERE EXPENDED IN ALL OF THOSE.

I MEAN, IT DIDN'T HAVE PURCHASE ORDER NUMBERS, BUT IT HAD DOLLARS.

THAT IS IN ONE OF THE BUDGET RESPONSE REPORTS.

AGAIN, THERE IS NO DIFFICULTY IN GIVING YOU THE PURCHASE ORDER DETAIL.

IT'S ALL PUBLIC INFORMATION. OKAY. SO THE QUESTION IS, DO WE WANT TO TASK THE FINANCE DEPARTMENT WITH DOING THAT BETWEEN NOW AND OUR NEXT MEETING, WHICH WILL BE A JOINT MEETING WITH PUBLIC WORKS, PURELY TO GO OVER THE BUDGET. AND WE PROBABLY WON'T BE IN A GOOD POSITION TO DO THIS.

OR DO WE WANT TO CONTINUE THIS UNTIL WHEN STAFF HAS TIME TO DO IT? AND I'M SURE THAT IF STEPHANIE AND HER STAFF GET THAT MATERIAL DONE EARLY, THEY'LL PUT IT ON THE NEXT AVAILABLE.

I KNOW IT'S BEEN OVER A YEAR. THAT'S WHY I'M A LITTLE HESITANT TO BELIEVE IT WILL HAPPEN UNLESS.

UNLESS I ASK FOR IT EVERY MONTH. I'M COMFORTABLE HAVING IT CONTINUE, BECAUSE I THINK, AS I SAY, I THINK WE'RE I THINK WE'RE FOCUSED NOW.

YES. FROM MY PERSPECTIVE, I UNDERSTAND IT MORE NOW.

YES. SO I THINK YES. AND LET'S GIVE THEM SOME.

LET'S DON'T MAKE THE NEXT MEETING. STEPHANIE, WHEN DO YOU THINK YOU'LL BE ABLE TO GIVE US MORE DATA ON THIS? IMMEDIATE FUTURE. GET THE DATA. THE DATA DOESN'T HAVE TO BE COMPLETE.

THE DATA WE'D WANT TO SEE WOULD BE AT THE END OF THIS FISCAL YEAR.

I'M NOT INTERESTED IN SEEING SOMETHING DURING THE MIDDLE OF THE YEAR, BUT AS OF JUNE 30TH, ALL EXPENSES FOR FY 25 SHOW US IN THAT FORMAT.

SHOW US WHAT WAS EXPENDED. WHAT WAS GRANT MONEY? WHAT WAS CURRENT FUND MONEY? THAT'S WHAT WE THAT'S WHERE WE START, RIGHT? YEP. SO YOU JUST WANT TO KNOW THE ONE FISCAL YEAR OR DO YOU WANT.

I WANT TO KNOW MORE BUT I THAT'S THE START POINT.

IT'S A DATA POINT THERE. YES. BACK UP. YES. THREE YEARS OR FOUR YEARS.

AND WE KEEP LOOKING AT THAT ON AN ONGOING BASIS.

IT'S A KIND OF A ROLLING. YES. SO I SECOND THAT.

OKAY. ALL IN FAVOR? WELL, NUMBER ONE, YOU CAN'T SECOND IT.

AND NUMBER TWO, THERE'S NO MOTION. AND NUMBER THREE.

I'M NOT SURE THERE WAS GOING TO BE A MOTION, BUT THAT'S EXACTLY WHAT WE SHOULD BE DOING.

I MEAN, THAT'S WHAT I MEANT. BUT HERE'S WHAT I WANTED TO CLARIFY.

YOU'RE SAYING THE END OF THE FISCAL YEAR, WHICH IS JUNE 30TH.

OKAY. SO I GOT TO ASK THE QUESTION AFTER JUNE 30TH, HOW LONG DOES IT TAKE TO CLOSE THE BOOKS SO THAT YOU CAN DO ANY KIND OF REPORT OF WHAT THE EXPENSES WERE THROUGH THE END OF THE FISCAL YEAR? I MEAN, I WOULD PREFER SOMETHING LIKE EARLY AUGUST TO GET ALL OF OUR EXPENSES FROM THE PRIOR FISCAL YEAR, JUST BECAUSE A LOT OF TIMES WE DON'T GET OUR INVOICES IN, SOMETIMES WE DON'T GET THE REVENUE IN.

[03:15:02]

I THINK THAT WOULD KIND OF GIVE YOU A SENSE OF WHAT YOU CAN EXPECT.

AND THEN WE CAN GIVE YOU, YOU KNOW, FISCAL YEAR END DATA WHEN THAT'S AVAILABLE.

I THINK THAT'S FINE. THAT'S FINE. AND WHEN I SAY WHEN I SAY AS OF JUNE 30TH, I DIDN'T MEAN GIVE US THAT ON JULY 1ST.

I MEANT AT THE END OF THE YEAR. THAT'S WHEN WE MEASURE IT FOR THE FISCAL YEAR.

IS THAT OKAY? BECAUSE I KNOW IT'S BEEN A LONG TIME AND I WANT TO MAKE SURE.

AND AUGUST, AUGUST, AUGUST OR SEPTEMBER IS FINE.

JUST A COUPLE OF YEARS. SO I WOULD LIKE TO MOVE THAT.

WE ASK FINANCE DEPARTMENT TO DEVELOP A TEMPLATE IN THEIR BEST AVAILABLE TIMELINE, A SKELETON THAT WE CAN READ.

AUGUST. WE NEED CONCRETE DATES. WAIT A MINUTE, WAIT A MINUTE.

LET ME FINISH MY MOTION. JEEZ. BRING IT TO US AT THEIR EARLIEST OPPORTUNITY.

PREFERABLY THE NEXT MEETING. OR CERTAINLY NOT BEFORE OR NOT AFTER OUR JUNE MEETING.

AND CONTINUE THIS ITEM UNTIL THAT'S AVAILABLE.

AND BRING THIS ITEM BACK ALONG WITH THE TEMPLATE AS SOON AS THAT TEMPLATE IS READY.

DOES THAT MAKE SENSE? AND WE'RE TALKING A TEMPLATE, NOT A REAL DETAIL.

OKAY, THAT SOUNDS GOOD TO ME IN ALL THE LINES.

AND YOU SAID BEFORE JUNE 30TH. ON OR BEFORE OUR JUNE MEETING.

OKAY. CAN WE DO A TEMPLATE BY THEN? I THINK PROBABLY WE CAN.

I WILL HONESTLY BE WORKING EVERY SINGLE HOUR OF EVERY DAY TO DO THE BUDGET.

YOU'RE GOING TO BE LIVING HERE THEN, RIGHT? YES.

SO I WILL MAKE MY BEST, BEST POSSIBLE EFFORT TO DO THAT.

I WOULD LIKE THE FINANCE DEPARTMENT TO MAKE THEIR BEST EFFORT TO BRING US, AND I THINK WE CAN.

I DON'T THINK A TEMPLATE IS GOING TO BE IT'S GOING TO BE THAT CHALLENGING.

AGAIN, I THINK WE JUST NEED TO GET TOGETHER AND MAKE SURE, YOU KNOW, FROM AN OPERATIONAL PERSPECTIVE, LOOKING AT THE SAME THING, WHAT WE'RE WHAT WE'RE PUTTING FORWARD MAKES SENSE.

AND I WOULD JUST LIKE IT TO BE GOOD BEFORE WE SHOW IT TO YOU.

YES. AND THE GOAL WILL BE TO FILL IN THE TEMPLATE.

WE'LL HAVE OUR AUGUST MEETING IS THE FIRST WEEK IN AUGUST. IS THAT FAIR? AUGUST.

AUGUST OR SEPTEMBER? AUGUST OR SEPTEMBER YES THAT WOULD BE THE GOAL.

TO FILL THE TEMPLATE. FILL THE TEMPLATE. BY THE TEMPLATE RIGHT NOW IS COMING TO US.

JUNE MEETING. WELL, SHE'S GOING TO TRY HER BEST EFFORTS.

I MEAN, YOU'RE NOT GOING TO. SHE'S NOT GOING TO GO TO JAIL IF SHE DOES NOT BRING A TEMPLATE IN JUNE.

I JUST WON'T SHOW UP FOR THAT MEETING. BUT I'LL ERIN COME. BUT WE NEED TO HAVE A CONCRETE DATE SO THAT THIS IS MOVING FORWARD BECAUSE IT HAS NOT MOVED FORWARD FOR A YEAR.

WE'RE SHOOTING FOR IT. AND IF IT SLIPS, IT SLIPS.

BUT WE'RE SHOOTING FOR IT. THAT'S YOUR MOTION. I SECOND YOUR MOTION. MOTION? ALL IN FAVOR? AYE. YES. ALL RIGHT. WAS THE SECOND ON THAT, JUST TO CLARIFY.

OKAY. YOU KNOW, IN ONE OF THE MINUTES I WAS READING AND IT SAYS THE WOMAN THAT'S THAT WAS WEARING PINK BECAUSE THEY DIDN'T KNOW THE NAME, AND THEY WERE JUST SAYING, YOU KNOW, SOMEONE, SOMEONE. AND THEY SAID THE LADY DRESSED IN PINK.

IT DID IT IN PINK. YEAH. IT DID. ARE YOU GOING TO ITEM I TWO OR.

YES. I THIS IS ITEMS CONTINUE FROM THREE. ALL RIGHT.

ITEM I TWO AND I BUILDING MAINTENANCE REPLACEMENT PLANNING.

I DON'T REMEMBER WHAT THIS. SOMEONE ASKED THIS INFORMATION.

DO WE HAVE ANYTHING ON THIS? I BELIEVE THIS IS ONE OF THE ITEMS THAT YOU HAD ASKED TO PLACE ON THE AGENDA ON AN ONGOING BASIS.

THIS WAS RELATED TO THE DISCUSSION ABOUT PLANNING FOR FUTURE CAPITAL REPLACEMENT.

LIKE A LONG TERM PLANNING? YES. OH, THIS IS THE LONG.

OKAY. I'M SORRY, I HAD MEANT TO REMOVE THIS ONE.

OKAY. SO FOR LONG TERM PLANNING I THINK WE MADE THAT POINT WITH THE CITY MANAGER. WE DID MAKE THAT POINT.

I'M GOING TO BE WE WON'T BE BRINGING THIS BACK NEXT TIME, BUT I'LL THINK ABOUT WHEN WE WANT TO ADDRESS IT.

MAYBE IN THE FUTURE IF WE DO. IF WE JUST ACCEPT IT THE WAY IT IS AND WE RECEIVE AND FILE.

THERE'S NOTHING DISAPPEAR INTO THE ETHER. WELL, I DON'T WANT IT TO DISAPPEAR.

THERE NEEDS TO BE A REASON TO BRING IT FORWARD AND WHY? BECAUSE WE WERE DISCUSSING THAT WE DO NOT HAVE ANY LONG TERM BUDGET PLANNING.

IF WE WANT TO, FOR EXAMPLE, REPLACE PUBLIC WORKS, AND THE VOTERS ARE NOT GOING TO APPROVE THE WAY THEY APPROVED POLICE AND FIRE

[03:20:06]

DOES EVERYBODY UNDERSTAND THE CIP PROCESS? YES.

BECAUSE THE CITY HAS A CIP PROCESS, BUT IT DID NOT INCLUDE.

YES, BUT IT DID NOT INCLUDE, FOR EXAMPLE, REPLACING POLICE DEPARTMENT BUILDING.

I THINK IT I THINK THERE WERE LINE ITEMS LIKE THAT THAT HAVE BEEN ON IT EVER SINCE I'VE BEEN ON THIS COMMITTEE.

IT'S JUST THAT THERE'S NEVER ANY FUNDING TO GET IT DONE, WHICH IS A DIFFERENT PROBLEM.

I BELIEVE THAT I HAVEN'T LOOKED AT THE CIP IN MONTHS, SO I DON'T REMEMBER EXACTLY, BUT THERE ARE A LOT OF PROJECTS ON THERE THAT THE BIGGEST IMPEDIMENT IS FUNDING. AND PART OF IT IS THE OUR CONTRACTING PROCESS AND WHAT HAS TO BE DONE IN ORDER TO ALLOCATE BUDGET FOR THOSE PROJECTS.

SO THAT'S WHY I HAD THIS ITEM THERE, AND I WANTED TO COME BACK SO THAT WE COULD DISCUSS THAT.

OKAY. SO YOU WANT TO JUST LEAVE IT ON THERE AND LEAVE IT ON THERE.

SO WHAT WE WANT TO DO. OKAY. ARE WE SUPPOSED TO IN THE NEXT MEETING? ARE WE SUPPOSED TO HAVE THE NEW CIP AT THAT POINT? THEY'LL HAVE KIND OF A BROAD OVERVIEW. SO WITH THE AGENDA, I INCLUDED THE PRESENTATION THAT THEY PRESENTED THE LAST TIME.

SO THEY'LL HAVE KIND OF LIKE A HIGH LEVEL VIEW OF THE CIP.

OKAY. THE PLANNED FIVE YEAR CAPITAL PROGRAM. SO AND THAT'S GOING TO BE ON OUR AGENDA, THAT WILL BE ON OUR OFFICIAL AGENDA.

SO THAT'S REALLY THIS ITEM WILL GO HAND IN HAND WITH THAT.

WELL WE DON'T NEED THIS. IF WE'VE GOT A REVIEW OF THE CIP AND WE'VE GOT PEOPLE HERE TO TALK ABOUT IT.

OKAY. CAN WE FOR THAT CIP, CAN WE ALSO SAY AND LONG TERM PLANNING MAYBE THAT WILL BECAUSE WHEN WE SEE CIP, WHAT THEY DO IS THEY PROVIDE US A LIST OF ITEMS AND THERE'S NO COST ASSOCIATED WITH IT.

AND THEN WE JUST LISTEN AND THEN WE RECEIVE AND FILE.

AND I WANT TO MAKE SURE THAT WE GIVE SOME INPUT AND SUGGESTIONS AND ADVICE AND NOT JUST LISTEN.

AND I WOULD SAY FOR THE PURPOSES OF THIS MEETING, IT REALLY IS TO PRESENT OUR FIVE YEAR CAPITAL PLAN.

I THINK IT IS A GREAT OPPORTUNITY FOR YOU TO ASK THOSE QUESTIONS.

SO OBVIOUSLY THAT'S AN THAT'S ONLY AN OPENING FOR YOU.

AND THEN WE CAN FOLLOW UP. YEAH. IT'S ONLY FIVE YEAR.

AND YOU KNOW THEY'RE NOT PLANNING. HOW ARE WE GOING TO REPLACE CITY HALL.

RIGHT. THAT'S NOT THEIR BUDGET, THAT'S NOT THEIR ROLE TO REPLACE CITY HALL, THAT'S A VERY DIFFERENT BEAST.

BUT WE CAN COMBINE IT, THAT'S YOU KNOW. I GUESS I'M A LITTLE LOST, SO.

OKAY, SO CAN WE JUST LEAVE THIS ITEM? BRING IT BACK NEXT TIME, PLEASE? AND IF YOU CAN SAY NEXT BUILDING MAINTENANCE, REPLACEMENT PLANNING LONG TERM.

SURE. SO THAT'S YOUR DEFINITION OF LONG TERM.

30 YEARS FROM NOW. OKAY. SO GREATER THAN FIVE YEARS.

YES. OKAY. BECAUSE WE DO FIVE YEARS. OKAY. YES.

WHAT NUMBER? I THINK THAT. OKAY. NOW GOING BACK TO CAN WE REOPEN J TWO? THAT'S WHERE WE WERE. BECAUSE WE. NO, I'M SORRY, NOT J TWO.

THE LAST 1J5. SO WE WERE DISCUSSING IF WE SHOULD HAVE TO RECOMMEND ANYTHING ABOUT HOMELESSNESS IN THIS STRATEGY, IN THIS, IN THESE OBJECTIVES. I THINK IT COMPLICATES.

WE DON'T HAVE ANYTHING SPECIFIC TO I'D SAY DON'T I DON'T HAVE ANYTHING.

OKAY. BUT IF SOMETHING THAT COMES UP, YOU CAN ALWAYS GO TO COUNCIL AND GIVE YOUR OPINION BECAUSE I THINK WE'RE ADDRESSING THAT THROUGH THE FINANCE DEPARTMENT COMING BACK WITH THE TEMPLATE AND KIND OF MOVING IT THAT WAY.

AND THEN I THINK IF WE THINK IT NEEDS SOME ADDITIONAL ATTENTION, REFOCUS IT.

IT'S MORE SPECIFICALLY. YEAH. ALL RIGHT. COMMISSION MEMBER ITEMS AND FUTURE COMMISSION AGENDA TOPICS.

RECEIVE AND FILE THAT. CAN WE RECEIVE AND FILE MOTION TO RECEIVE FILE COUNCIL STRATEGIC PLAN, PLEASE. SO MOVED. SECOND. ALL IN FAVOR? AYE. ALL RIGHT.

THANK YOU. ITEM K. OH. WAS I SUPPOSED TO ASK IF THERE WAS ANYONE ON ZOOM OR ON? THERE IS NOBODY ON ZOOM. AND THERE IS NO E COMMENTS.

THANK YOU. ITEM K, COMMISSION MEMBER AND FUTURE COMMISSION AGENDA ITEMS.

[K. COMMISSION MEMBER ITEMS AND FUTURE COMMISSION AGENDA TOPICS]

[03:25:03]

THANK YOU SO VERY MUCH FOR WHOEVER DID THOSE MINUTES.

THERE WERE. THEY'RE ALL CUT UP NOW, AND THERE WERE MANY.

I DON'T KNOW IF YOU HAD A CHANCE TO LOOK AT IT.

IT'S ALL CUT UP. THANK YOU. I THANK YOU VERY, VERY MUCH.

WHOEVER, PLEASE PASS THE CLERK'S OFFICE. IT WAS GREAT.

YES. THANK YOU. YEAH. APPRECIATE IT. YEAH. APPRECIATE IT.

THANK YOU, ERIN. CITY CLERK'S OFFICE A QUESTION ON THE MINUTES.

SO REMIND ME WHY WE HOW WE GOT BEHIND THAT MANY, MANY MONTHS.

IS THERE AN OUTSIDE PARTY DOING THE MINUTES OR.

YES. SO THIS SORT OF OCCURRED BEFORE I CAME ON.

BUT YES, THERE WAS AN OUTSIDE CONTRACTOR DOING IT.

AND THEN I THINK THERE WAS A CONTRACT RENEWAL.

SO THEY HAD TO GO THROUGH THAT AND IT WENT TO ANOTHER PERSON.

SO IT KIND OF SWITCHED HANDS A LITTLE BIT. SO I THINK THAT'S WHY ONE FROM MAY SLIPPED THROUGH THE CRACKS.

BUT WE'RE BACK ON SCHEDULE NOW. SO THAT WE SHOULD GET MINUTES BEFORE AT THAT AT THE AGENDA FOR THE NEXT MEETING.

WE SHOULD GET THE MINUTES FOR THIS MEETING. OKAY. COOL. AND I WOULD JUST ADVISE FOR DURING THIS SECTION TOO, THAT WE CANCEL THE APRIL 10TH MEETING OFFICIALLY.

OKAY. THANK YOU. I HAVE. SO IN OTHER COMMISSIONS, I, THE AUDITORS, THE CITY AUDITORS PRESENT TO THE COMMISSION. I, I, I MIGHT HAVE MISSED THE MEETING.

HAS THERE BEEN AN AUDITOR WHO CAME AND PRESENTED OUR ANNUAL.

NO, THERE HAS NOT. AND THAT IS BECAUSE WE ARE LATE ON OUR AUDIT THIS YEAR.

WE ARE WORKING VERY CLOSELY WITH OUR AUDITORS.

WE HAVE NEW AUDITORS THIS YEAR. SO WE'VE HAD QUITE A BIT OF TRANSITION IN OUR DEPARTMENT.

SO WE'RE A LITTLE BEHIND. BUT YES WHEN WE HAVE OUR REPORT, THE AUDITORS WILL COME AND PRESENT TO THIS COMMISSION.

SUPER. THANK YOU VERY MUCH. APPRECIATE IT. YES.

THAT WOULD BE YOU KNOW, THAT. AND FOR US TO ASK QUESTIONS AND UNDERSTAND FURTHER THAT WOULD HELP.

WE HAVE OH AND ONE SO NEXT TIME WE'RE GOING TO HAVE PUBLIC WORKS SUSTAINABILITY COMMISSION.

IN THIS DOCUMENT AND I KNOW THIS IS SOMETHING AGAIN, COMMISSIONER JESTE HAS ASKED.

WHEN WE HAVE A LIST OF PROJECTS, CAN THEY PLEASE HAVE I KNOW THIS IS THE OLD ONE RIGHT.

THIS IS FROM LAST YEAR, BUT THAT IS AN EXAMPLE.

SO I AM EXPECTING THEY'RE GOING TO HAVE DOLLAR AMOUNTS FOR EACH PROJECT.

I WILL ASK AGAIN IT'S A LITTLE BIT PRELIMINARY.

I IMAGINE THEY WILL HAVE DOLLAR AMOUNTS. I WILL BRING THAT UP AND CONFIRM WITH THEM.

IT'S NOT MY PRESENTATION. SO YES. BUT IF, IF THEY WOULD PLEASE.

BECAUSE THAT'S HOW THEY CAME UP WITH THE CAPITAL.

OF COURSE. PROJECT BUDGET. SO THEY, THEY SHOULD HAVE SOME KIND OF AN IDEA HOW MUCH EACH ONE IS COST.

SO WE HAVE MORE QUESTIONS WHEN WE GO TO THAT MEETING.

WE WILL HAVE SOME QUESTIONS AT THAT MEETING AND THEN THEY'LL BE REQUIRED TO ANSWER THOSE.

WE'LL SEE WHAT HAPPENS. OKAY. I MEAN, YOU KNOW, JUST FOR THEM TO UNDERSTAND THE PURPOSE.

OUR PURPOSE IS NUMBERS AND FINANCE. YEP. SO THAT'S WHY WHEN WE'RE LOOKING, THAT'S THEIR PURPOSE AS WELL, ESPECIALLY. BUT, YOU KNOW, WHEN THEY'RE DOING MANHATTAN BEACH BOULEVARD RESURFACING, YOU KNOW, ANOTHER COMMISSION WOULD BE LOOKING AT, OH, WHAT IS THIS GOING TO LOOK LIKE.

WHAT OUR JOB IS TO UNDERSTAND THE NUMBERS OF THAT PROJECT, NOT, YOU KNOW, WHAT, TREES BEING PLANTED WHERE.

SO THAT'S THE POINT I WANT TO MAKE THAT THEY UNDERSTAND THAT THAT'S OUR JOB HERE, IS TO UNDERSTAND THE NUMBERS.

AND KEEP IN MIND MOST OF THE THINGS THAT ARE IN THAT CIP, WE DON'T PAY FOR OUT OF THE GENERAL FUND.

OKAY. BUT IT'S STILL MONEY. SOMEBODY'S MONEY. THEY'RE GRANT FUNDED.

YES. SO THEY MAY BE WAITING FOR A GRANT TO BE APPROVED BEFORE THEY GET AN ESTIMATE TO DO THE WORK, OR THEY MAY HAVE A PRELIMINARY ESTIMATE THAT NEEDS TO BE REVISED WHEN THEY GET THE GRANT.

THERE ARE A LOT OF PIECES IN THIS, AND I AGREE WITH YOU.

IF THEY'VE GOT IF THEY'VE GOT ITEMS ON THE LIST THAT ARE WITHIN THE FISCAL YEAR, THEY SHOULD PROBABLY GIVE US SOME IDEA OF WHAT THEY'RE GOING TO BE SPENDING AND THINGS, BUT WE REALLY DON'T HAVE ANY INPUT ON THAT BECAUSE THE CITY DOESN'T SPEND THAT MONEY.

IF IT'S GRANT MONEY THAT STILL COMES TO THE CITY.

SO WE RESPECT OUR BUDGET. IT'S SOMEBODY'S MONEY.

WELL, THAT'S MONEY THAT CAN ALSO BE USED SOMEWHERE ELSE, NOT JUST ON THIS PROJECT.

YOU KNOW, MOST GRANT FUNDS ARE PROJECT SPECIFIC OR IT CAN BE GRANT OR BIGGER THAT.

OKAY. AND WITH THAT CAN I HAVE A MOTION TO ADJOURN THE MEETING, PLEASE? OH, BEFORE WE DO, CAN WE JUST HAVE A MOTION TO CANCEL THE APRIL 10TH MEETING AND THEN WE'LL CONFIRM THAT APRIL 28TH.

CANCEL APRIL 10TH MEETING AND ATTENDED APRIL 28TH MEETING, PLEASE.

[03:30:01]

SOME ONE OTHER. I THOUGHT WE WERE ON K. K RIGHT, YEAH.

BUT I HAVE SOMETHING ON K. YES. WE NEED TO BE THINKING ABOUT DEFINED BENEFIT VERSUS DEFINED CONTRIBUTION RETIREMENT PLANS.

WE NEED TO HAVE DATA FOR SEVERAL YEARS BACK SHOWING HOW MUCH WE HAVE SPENT FOR PENSION CONTRIBUTIONS.

EVERYTHING WE'VE SPENT BY YEAR AS A PERCENTAGE OF THE TOTAL BUDGET.

THIS IS BECOMING AN ISSUE WITH MANY CITIES AND COUNTIES IN THE STATE OF CALIFORNIA, AND THEY'RE FINDING THAT THEY'RE SPENDING SO MUCH ON DEFINED BENEFIT PLANS THAT THEY'RE CHANGING ALL NEW HIRES TO DEFINED CONTRIBUTION.

I HAVE NO IDEA WHETHER THAT'S AN ISSUE FOR US YET, BUT IT IS JUST LIKE IT'S AS IMPORTANT.

IT'S MORE IMPORTANT THAN WHAT WE'RE SPENDING ON ON THE HOMELESS BECAUSE IT'S A LARGER BUDGET ITEM.

SO I WOULD LIKE TO SEE US. ONCE YOU FINISH THE BUDGET, ONCE YOU FINISH EVERYTHING ELSE THAT WE'RE ASKING FOR, PUT ON YOUR LIST. I DON'T I'VE BEEN ON THIS COMMISSION FOR 5 OR 6 YEARS, AND I DON'T RECALL SEEING I SEE A COMPLETED BUDGET, BUT I DON'T RECALL SEEING A DOCUMENT SHOWING WHAT WE SPENT FOR THE PRIOR YEAR BY LINE ITEM.

MAYBE I'M JUST IGNORING IT. MAYBE I'M GETTING IT AND NOT READING IT, BUT IT'S THAT THAT KIND OF A DOCUMENT I'D LIKE TO BE ABLE TO.

I THINK WE SHOULD GO BACK AND SAY, FOR THE LAST FIVE YEARS AND WHATEVER WE SPENT FOR PENSIONS, WHATEVER WE PAID TO TAKE CARE OF. ALL THOSE EXPENDITURES IN TOTAL AND COMPARE THAT TO THE TOTAL BUDGET AND SAY WHAT THAT PERCENTAGE IS AND SEE HOW THAT'S CHANGED, HOW THAT'S CHANGING OVER THE YEARS.

AND IF IT MAY NEVER BECOME PROBLEMATIC, IT MAY ALREADY BE PROBLEMATIC, BUT WE NEED TO KNOW IT.

AND WE DON'T HAVE THAT INFORMATION RIGHT NOW. I THINK THE MULTIYEAR COMPARISON IS IN THE BUDGET THAT WE GET.

IT'S JUST A REALLY ODD FORMAT. AND I ALWAYS FIND MYSELF GETTING HEADACHES TRYING TO SORT IT OUT.

SO WE'RE THREE YEAR ACTUALS ARE IN THE BUDGET.

YEAH WE ARE LOOKING AT THESE TABLES NOW AND WE'RE TRYING EVERYTHING WE CAN.

IT'S YEAH. YEP. IT GIVES ME A HEADACHE. IN THE PAST, OUR CITY MANAGER HAS DONE AN EXCELLENT PRESENTATION ON HOW WE'RE TRANSITIONING FROM THE TRADITIONAL CALPERS PROGRAM, PARTICULARLY FOR OUR PUBLIC SAFETY PERSONNEL OVER TO PEPRA.

AND THAT'S MORE OF A DEFINED CONTRIBUTION PLAN.

NOW THAT DEFINED CONTRIBUTION OR IS THAT JUST A LOWER LESS EXPENSIVE DEFINE.

MY UNDERSTANDING IS IT'S DEFINED CONTRIBUTION.

BUT HE WOULD BE THE ONE PROBABLY. OR SOMEONE FROM HR WOULD BE THE ONES TO GIVE US A FULL OUTLINE OF WHAT THOSE PLANS ARE.

BUT OKAY. YEAH, I THINK THAT'S PROBABLY SOMETHING WE CAN PROVIDE YOU AS WELL.

JUST AN OUTLINE OF WHAT PEPRA IS. THE BENEFITS ARE LOWER AND THEY'RE MUCH HIGHER CONTRIBUTIONS.

SO IT IS STILL A DEFINED BENEFIT PLAN. STILL A DB PLAN.

YES, IT IS, BUT IT IS SIGNIFICANTLY LESS EXPENSIVE FOR CITIES.

I THINK AS OF THE LAST REPORTING I SAW FROM CALPERS, OVER 60% OF PLAN PARTICIPANTS ARE NOW IN PEPRA, WHICH IS GREAT NEWS. YOU'LL REMEMBER IN OUR LAST EVALUATION, THE PERCENTAGE OF PAYROLL FOR OUR ONGOING CONTRIBUTIONS ACTUALLY SHRANK FROM THE PRIOR YEAR. AND THAT'S THE THAT'S THE IMPACT OF PEPRA.

SO TO YOUR POINT, COMMISSIONER WOODHAM, ACTUALLY, THE CITY MANAGER AND I WERE DISCUSSING THIS EXACT PRESENTATION OF THE PENSION COSTS AND OUR SALARIES EARLIER TODAY. SO I THINK THAT'S SOMETHING YOU CAN EXPECT TO SEE.

OKAY, COOL. YEAH. I JUST WANTED TO SAY I THINK THAT'S ONE OF THE MOST IMPORTANT THINGS THAT WE CAN DO IS TO, TO MAKE THE TRANSITION, AT LEAST TO UNDERSTAND WHAT A TRANSITION WOULD BE BETWEEN A DEFINED BENEFIT AND DEFINED CONTRIBUTION.

WHAT DOES IT TAKE TO DO WHO'S DONE IT AND COME UP WITH A MODEL FOR THAT? SO NOW OUR ANALYSIS WILL BE OLD DEFINED BENEFIT NEW DEFINED BENEFIT OR DEFINED CONTRIBUTION.

YEAH. YEAH. IS THERE A TIME FRAME YOU WOULD LIKE TO AUGUST. ON JULY 1ST. I WON'T BE DOING ANYTHING UNTIL THEN.

I'D SAY. I'D SAY THIS IS SOMETHING THAT WE SHOULD TAKE A LOOK AT DURING THE FIRST QUARTER OF FY 26.

[03:35:08]

I EXPECT YOU'LL HAVE SOME INTRODUCTORY LOOK AT IT IN THE BUDGET.

AND WE CAN PROGRESS FROM THERE. OKAY. I'LL MAKE A NOTE SO WE DON'T FORGET.

SO I'M GOING TO SAY MAYBE AUGUST. SEPTEMBER. AND I'LL REMIND.

CAN WE ADJOURN? CAN I HAVE A MOTION TO ADJOURN, PLEASE? DOES ANYBODY ELSE HAVE A COMMENT? I THINK THEY'RE I THINK THEY'RE I DON'T HAVE ANYTHING.

I MOVE, WE ADJOURN. SECOND. ALL IN FAVOR? AYE.

* This transcript was compiled from uncorrected Closed Captioning.