[00:00:03] MARCH 12TH MEETING OF THE BUDGET AND FINANCE COMMITTEE TO ORDER. [A. CALL MEETING TO ORDER] START WITH A ROLL CALL. COMMISSIONER MARIN? HERE. COMMISSIONER JESTE? HERE. COMMISSIONER ALLEN? ABSENT. COMMISSIONER RAMCHARAN? ABSENT. COMMISSIONER SHERBIN? HERE. COMMISSIONER TURNER? ABSENT. AND CHAIR WOODHAM? PRESENT. LET'S STAND AND SALUTE THE FLAG. I PLEDGE ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF AMERICA. AND TO THE REPUBLIC FOR WHICH IT STANDS. ONE NATION UNDER GOD, INDIVISIBLE, WITH LIBERTY AND JUSTICE FOR ALL. [D. APPROVE ORDER OF AGENDA] CAN I GET A MOTION TO APPROVE THE ORDER OF AGENDA? SO MOVED. SECOND. ALL IN FAVOR? AYE. BLUE FOLDER ITEMS. [E. BLUE FOLDER ITEMS - ADDITIONAL BACK UP MATERIALS] WE HAD ONE BLUE FOLDER, RIGHT? THAT'S CORRECT, THERE'S ONE BLUE FOLDER ITEM FOR ITEM J.1. OKAY. AND THE CONSENT CALENDAR. ONE SECOND, SORRY. WE NEED A MOTION TO RECEIVE AND FILE THE BLUE FOLDER ITEMS. OKAY. MOTION TO. DO I HAVE A MOTION TO RECEIVE AND FILE THE BLUE FOLDER ITEMS? MOTION TO RECEIVE AND FILE. SECOND. ALL IN FAVOR? AYE. DONE. NOW, THE CONSENT CALENDAR. YOU SEE THE CONSENT CALENDAR FOR F.1 AND [F. CONSENT CALENDAR] F.2, DO I HAVE A MOTION TO APPROVE THE CONSENT CALENDAR? UNLESS ANYONE HAS WANTS TO DISCUSS THEM SEPARATELY. IF NOT, A MOTION TO APPROVE? SO MOVED. SECOND. ALL IN FAVOR? AYE. OKAY, WE'RE BRINGING FORWARD A ONE ITEM FROM, THAT'S EXCLUDE CONSENT CALENDAR. NOTHING THERE. H. ANY PUBLIC PARTICIPATION? [H. PUBLIC PARTICIPATION ON NON-AGENDA ITEMS] THERE ARE NO ECOMMENTS AND NO ONE ON ZOOM. HEY. GOOD TIME, GOOD TIMING. THANK YOU ALL. GOOD EVENING. COMMISSIONERS. EVENING. YOU MADE IT JUST UNDER THE WIRE. YEAH, I DID. WOW. OKAY. I JUST WANTED TO KNOW. I THINK I NOTICED THAT THE PROCUREMENT ITEM FELL OFF THE AGENDA THIS TIME. AND I HOPE IT'S GOING TO COME BACK ON BECAUSE THOSE PROCUREMENT REGULATIONS ARE ABOUT 15 YEARS OLD, AND I DO THINK WE HAVE A PROBLEM WITH PROFESSIONAL SERVICES. THERE WERE A COUPLE OF EGREGIOUS CONTRACTS THAT DID NOT HAVE SOLE SOURCE JUSTIFICATION AND JUST APPEARED TO BE KIND OF OFF THE CUFF, YOU KNOW, COME ON IN AND, YOU KNOW, WHATEVER YOU CHARGE WILL, WILL PAY. SO I THINK IT'S WORTH LOOKING AT THAT. THE PROFESSIONAL SERVICES ITEM IS OVER $10 MILLION IN THE BUDGET. SO I THINK IT WOULD BE WORTHWHILE FOR THE COMMISSION TO TAKE THAT IN. YEAH. THE PLAN. A GOOD COMMENT. THE PLAN IS DEFINITELY TO CONTINUE THAT AND TO, TO, TO DELVE INTO IT. OKAY, GREAT. THANK YOU. ANYTHING ONLINE? NO ONLINE COMMENTS. NO ONE ON ZOOM. OKAY. MOVE TO ITEM J.1. DISCUSSION AND POSSIBLE ACTION REGARDING FY 26 MID-YEAR BUDGET. [J. ITEMS FOR DISCUSSION PRIOR TO ACTION] STEPHANIE. ALL RIGHT. GOOD EVENING, CHAIR AND COMMISSIONERS. VERY EXCITED TO SEE FOUR OF YOU HERE THIS EVENING. JACOB, COULD I GET THE SLIDES? OH. WHICH PART DO YOU WANT? CAN YOU SWITCH IT JUST TO MY SCREEN? OH, SORRY. IT'S BEEN A LONG WEEK FOR US HERE. SO TONIGHT WE'RE HERE TO DISCUSS OUR MEDIA RESULTS FOR THE YEAR THROUGH DECEMBER 31ST, 2025. THIS IS AN IMPORTANT POINT IN OUR YEAR TO KIND OF TAKE A LOOK AT WHERE WE ARE AND ESPECIALLY LEADING INTO OUR BUDGET PREPARATION, START THINKING ABOUT ANY CHANGES THAT WE NEED TO MAKE OR ANY STRATEGIES WE MIGHT NEED TO ADOPT GOING INTO THE NEXT YEAR. [00:05:08] AND AS YOU'LL SEE, WE'VE INCLUDED A MENTION OF A FEW OF THOSE ITEMS IN THE REPORT TONIGHT. SO JUMPING INTO OUR REVENUE, WE'LL START WITH THAT. WE HAD KIND OF MIXED RESULTS OVERALL FOR THE GENERAL FUND. I'LL WALK THROUGH THEM, BUT WE HAD SOME INCREASES IN OUR PROPERTY TAX AND SOME OTHER OF OUR, AND SOME CHARGES FOR SERVICE, SOME ONE TIME ITEMS, BUT WE DO HAVE SOME PRETTY SIGNIFICANT REDUCTIONS WHICH IS PUTTING US IN A BIT OF A CHALLENGING POSITION FOR THIS FISCAL YEAR. SO I'LL GO THROUGH THESE BRIEFLY TAXES AS A CATEGORY OVERALL WERE DOWN ABOUT 600,000. WE ESTIMATE FROM PROJECTED AGAIN, WE HAVE SLIGHTLY BETTER THAN ANTICIPATED RESULTS IN PROPERTY TAX, WHICH IS GREAT. AGAIN, THIS IS BASED ON OUR ASSESSED VALUATION. AND WE'LL GET UPDATED DATA FROM OUR CONSULTANT MIDWAY THROUGH THE YEAR, OVER THE YEAR, EVERY YEAR TO HELP US PROJECT. FOR PROPERTY TRANSFER TAX, AGAIN, THIS IS AN ITEM WHERE WE ENDED BETTER THAN EXPECTED IN 24-25. AND WE SEE THIS TREND CONTINUING IN 25-26. SO THAT'S A GOOD SPOT FOR US. SALES TAX, THIS CAME AS A, IT IS NOT ENTIRELY UNEXPECTED, BUT WE DO HAVE A FAIRLY SIGNIFICANT DECREASE HERE. THIS AGAIN IS BASED ON OUR DISCUSSIONS WITH OUR SALES TAX CONSULTANT. SO THEY LOOK AT THE DATA AND RECEIPTS AND THEY HAD A, THAT MANY DOWNWARD REVISIONS TO WHERE THEY KIND OF EXPECTED TO SEE HIGHER REVENUES. TWO. YES. GO AHEAD. THESE PLUSES AND MINUSES. THIS IS VERSUS THE BUDGET OR VERSUS LAST YEAR? VERSUS THE BUDGET. OKAY. SORRY, I SHOULD HAVE BEEN CLEAR ABOUT THAT. THESE ARE ALL VERSUS THE BUDGET. SO AND FOR SALES TAX IN PARTICULAR OUR TWO MOST SIGNIFICANT CATEGORIES ARE IN RESTAURANTS AND HOTELS. AND BOTH OF THOSE AREAS ARE DOWN FOR US. ACCORDING TO OUR CONSULTANT IN BOTH THESE CATEGORIES AND KIND OF ACROSS THE BOARD, SALES TAX IS FLAT AND IT'S FURTHER DOWN THAN THEY HAD PROJECTED FOR THE START OF THIS YEAR. OUR HOTELS IN PARTICULAR ARE A BIT FARTHER DOWN THAN SOME OF THE, ESPECIALLY LIKE THE LA AREA BUT KIND OF CONSISTENT WITH OUR, OUR REGION. TRANSIENT OCCUPANCY TAX. AGAIN, THIS IS ONE WE'RE KIND OF WATCHING FOR THE YEAR AND JUST LOOKING AT RECEIPTS THROUGH DECEMBER. ON AVERAGE, OUR HOTELS LOOK LIKE THEY'RE DOWN ABOUT 5%. AND AGAIN, TALKING TO TALKING TO THE HOTELS AND LOOKING AT THE MARKET DATA. THIS IS PRETTY CONSISTENT ACROSS THE SOUTH BAY. IT'S NOT WHAT I THINK ANYONE HAD PROJECTED NECESSARILY, BUT WE KNEW, YOU KNOW, WITH JUST KIND OF GENERAL ECONOMIC UNCERTAINTY THIS, THIS COULD BE A DIFFICULT AREA FOR US. AND I'LL JUST NOTE. YES. JUST WANT TO ADD, I THINK PERHAPS WITH SOME OF THE CURRENT EVENTS WITH RESPECT TO THE PRICE OF PETROLEUM AND PROBABLY TRAVEL, COST OF TRAVEL, AIR TRAVEL AND WHATEVER, PROBABLY INCREASING, AT LEAST IN THE SHORT TERM, WE PROBABLY ARE NOT GOING TO SEE A REBOUND, I WOULD SUSPECT, IN EITHER THE TOT OR THE SALES TAX IN THE NEAR FUTURE UNFORTUNATELY. YES. IT'S DEFINITELY A CONSIDERATION. AND I'LL JUST, I JUST WANTED TO NOTE HERE ON THE TRANSIENT OCCUPANCY TAX, AS WE MENTIONED, THE CARRYOVER REPORT AND OTHERS, THIS DOES NOW INCLUDE THE REVENUE FROM OUR THREE HOTELS WITH WHICH THE CITY HAS OUR SITE SPECIFIC TAX AGREEMENT. WE'RE GOING TO RECORD ALL THE REVENUE WE RECEIVE HERE, AND WE'LL RECORD PAYMENTS AS AN EXPENDITURE ADJUSTMENT. AND THEN FINALLY, FRANCHISE FEES. THIS IS AN AREA WHERE, IF YOU'LL REMEMBER FROM LAST MEETING, WE WERE ABOUT THE SAME AMOUNT BELOW BUDGET FOR 24-25. THE CURRENT YEAR LOOKS ABOUT THE SAME. SO WE'RE GOING AHEAD AND MAKING THAT ADJUSTMENT. NOW WE'RE GOING TO LOOK FOR A LITTLE BIT MORE DETAILED DATA FOR THIS AS WE GO INTO FISCAL YEAR 26-27. THIS REVENUE DOES TEND TO FLUCTUATE QUITE A BIT. AND ENERGY PRICES ARE PART OF THAT. SO, YOU KNOW, POTENTIALLY WE COULD BENEFIT FROM SOME OF THOSE ENERGY PRICES IF THEY CONTINUE TO SPIKE AS AS WE'VE SEEN. BUT AGAIN, WE DON'T KNOW THAT THAT WILL HAPPEN BEFORE THE END OF THE FISCAL YEAR. SO IN OTHER REVENUE, THERE ARE A FEW AREAS WHERE WE DO SEE STRONGER THAN EXPECTED REVENUE. I'VE LISTED THESE OUT HERE. ONE ARE AMBULANCE FEES, WE'VE ALREADY COLLECTED ABOUT 100 OR WE'VE ALREADY COLLECTED 100% OF OUR BUDGETED AMOUNT THROUGH HALF THE YEAR. WITH CONSISTENT REVENUE, WE'RE PROJECTING THAT FORWARD. [00:10:02] WE HAVE BETTER THAN ANTICIPATED RESULTS FOR OUR PARKING METER FEES. AND THEN IN OUR, FOR OUR DEVELOPMENT RELATED FEES, WE'VE HAD VERY STRONG DEVELOPMENT ACTIVITY THIS ENTIRE YEAR. AND WE ARE REFLECTING THAT IN THIS ADJUSTMENT. WE ALSO HAVE A FEW ONE-TIME PAYMENTS THE CITY DID NOT ANTICIPATE FOR THIS YEAR. WE HAVE A SETTLEMENT REIMBURSEMENT FROM AN OLD LAWSUIT. AND WE JUST SIGNED AN AGREEMENT WITH GOOGLE THAT INCLUDED AN AGREEMENT SIGNING BONUS. SO WE'RE INCLUDING THAT HERE. AND FINALLY, WE INCLUDE OUR OVERHEAD ADJUSTMENTS, OUR INTERNAL SERVICE FUND ADJUSTMENTS AT OUR MID-YEAR REPORT. THE OVERHEAD CHARGES ARE A NET ZERO TO THE GENERAL FUND. SO WHILE WE RECORD THEM AS REVENUE, WE ALSO RECORD THEM AS EXPENSE. SO AND AGAIN THIS IS 1.4 MILLION. IT'S ABOUT A 9% INCREASE. AND THIS LARGELY REFLECTS PERSONNEL COSTS. SO OVERALL FOR THE GENERAL FUND WE ARE PROJECTING ABOUT A $2.4 MILLION, $2.4 MILLION AHEAD OF WHAT WE HAD BUDGETED. MOVING ON TO EXPENSE, WE ALSO HAVE SOME FAIRLY SIGNIFICANT ITEMS. THESE ARE ITEMS THAT WE FORECASTED FOR THIS COMMISSION AND FOR COUNCIL A BIT WITH OUR CARRYOVER REPORT, STARTING WITH OUR INTERNAL SERVICE FUNDS. SO IF YOU'LL RECALL, I THINK, DID I PUT THIS IN THE NEXT SLIDE? IF YOU'LL RECALL, WE HAVE MANY INTERNAL SERVICE FUNDS. WE HAVE SELF. LET ME SEE, I THINK I PUT THIS UP THERE, HERE, I'LL JUST PUT THIS SLIDE UP WHILE I'M TALKING ABOUT THIS. THESE NUMBERS REFLECT THE TOTALS FOR THE CITY AS A WHOLE. SO NOT JUST THE GENERAL FUND. BUT IF YOU'LL RECALL, WE HAVE A NUMBER OF OUR INTERNAL SERVICE FUNDS. THIS IS WHERE THE CITY CONTRIBUTES FUNDS TO HELP WITH KNOWN COSTS MOVING FORWARD. THE MAJOR ONES OF THESE ARE OUR SELF-INSURANCE FUND, VEHICLE REPLACEMENT FUND IT FUND. I MEAN, YOU CAN SEE THEM ALL HERE. BUT SO EVERY YEAR WE REVIEW THESE AND WE UPDATE OUR COSTS AND THEY'RE KIND OF TWO PIECES TO SOME OF THESE. WE HAVE KIND OF THE OPERATIONS PIECE AND INCREASES TO THAT GENERALLY REFLECTS PERSONNEL AND OTHER OPERATIONAL COSTS. FOR OUR VEHICLE REPLACEMENT, IT AND EMERGENCY COMMUNICATIONS. THESE ALSO REFLECT WHAT WE ANTICIPATE NEEDING TO REPLACE IN A GIVEN YEAR. SO THAT WILL FLUCTUATE, BUT IT FLUCTUATES ALONG WITH PURCHASE CYCLES RATHER THAN BEING RELATED TO JUST GENERAL OPERATIONAL COSTS. SO GOING BACK TO HERE, WE HAVE ABOUT A $2.9 MILLION INCREASE, WHICH IS ABOUT A 10% INCREASE FOR THE GENERAL FUND. AND THIS IS STRONGLY DRIVEN BY INCREASES TO OUR SELF-INSURANCE FUND. MORE THAN YOU HAD BUDGETED. SO I'M ASSUMING YOU GUYS BUDGETED THAT INSURANCE WAS GOING TO COST MORE FOR THE YEAR, OR THIS IS 35% ABOVE WHAT YOU HAD BUDGETED, OR? THIS IS A 34% INCREASE OVER THE PRIOR YEAR AMOUNT. GOT YOU. AND WHAT HAD YOU BUDGETED FOR AN INCREASE FOR THE YEAR? SO WE HAD FOR THE INTERNAL SERVICE FUNDS, WE DON'T BUDGET FOR THE INCREASE BECAUSE WE DO THE CALCULATION EVERY YEAR. SO THE INCREASE FOR THESE IS ESSENTIALLY UNBUDGETED. GOTCHA. YEAH. AND AGAIN, THAT'S BECAUSE WE DON'T HAVE INFORMATION AHEAD OF TIME TO TELL US WHAT THESE INCREASES COULD BE. AS A MATTER OF, YOU KNOW, AS AN ESTIMATE, AS WE SEE THESE GETTING LARGER IS SOMETHING THAT WE COULD THINK ABOUT. SO, YOU KNOW, THIS IS KIND OF WHAT WE SIGNALED AT CARRY OVER TO SAY, HEY, WE DO HAVE SOME AVAILABLE FUND BALANCE, BUT WE KNOW WE'RE GOING TO HAVE THESE COST INCREASES COMING. THE SELF-INSURANCE IN PARTICULAR, WE WERE EXPECTING IT TO BE HIGH. SELF-INSURANCE FUNDS REFLECT OUR LIABILITY AND WORKER'S COMP CLAIMS, OUR WORKER'S COMP PREMIUMS, BUT THEY ALSO REFLECT CLAIMS. AND THE WAY THAT WE CALCULATE THIS, WE USE A FIVE-YEAR AVERAGE OF THE CLAIMS COSTS AS THOSE TEND TO FLUCTUATE. SO THIS WOULD AVOID, YOU KNOW, ESPECIALLY LARGE OR ESPECIALLY SMALL YEAR. THE SPECIFIC ISSUE WITH THIS YEAR IS ACTUALLY RELATED TO 23-24. WE HAD A VERY HIGH YEAR FOR BOTH, I THINK MAINLY LIABILITY, BUT PROBABLY WORKER'S COMPENSATION AS WELL. WE DID NOT INCLUDE THIS IN OUR LAST YEAR BECAUSE WE IDENTIFIED THIS IN OUR FINAL AUDIT ADJUSTMENTS. SO WE'RE CATCHING UP A LITTLE BIT HERE FROM OUR LAST YEAR. AND AGAIN, THIS IS, YOU KNOW, IT WILL FLUCTUATE BASED ON OUR CLAIMS. AND THERE ARE WAYS THAT WE CAN MANAGE THESE AND TRY AND DECREASE THIS MOVING FORWARD. OUR NEXT LARGEST INCREASE, BUT IT'S NOT, YOU KNOW, TOO SIGNIFICANT IS IN VEHICLE MAINTENANCE. THIS REFLECTS OUR ANNUAL REPLACEMENT. AND IT ALSO REFLECTS KIND OF BUILDING IN SOME ADVANCE [00:15:02] PURCHASES THAT WE MADE FOR THE FIRE DEPARTMENT SEVERAL YEARS AGO, WE PURCHASED SEVERAL ENGINES. WE HAD AN OPPORTUNITY TO PURCHASE THESE AT A GOOD PRICE BEFORE THE REPLACEMENT WAS DUE. SO WE PURCHASED THOSE AND WE'RE JUST NOW BUILDING THEM INTO THE SCHEDULE. AND THE OTHERS PRIMARILY REFLECT JUST REGULAR KIND OF PERSONNEL COST INCREASES. OUR SECOND VERY LARGE ITEM HERE IS FOR OUR AUTHORITY FUNDED RESERVE. THESE ARE PAYMENTS RELATED TO OUR SITE-SPECIFIC TAX AGREEMENT WITH OUR HOTELS. SO WHEN WE PUT TOGETHER THE BUDGET THIS YEAR IN CONSULTATION WITH THE HOTEL OWNER AND KIND OF LOOKING AT THEIR LATEST PROJECTIONS, WE ANTICIPATED JUST A FEW MONTHS OF CONTRIBUTIONS TO THIS RESERVE FUND. AND WE HAD A COUPLE ITEMS HAPPEN. ONE, AS YOU SAW, WE HAVE WEAKER THAN PROJECTED TOURISM DEMAND. SO THAT HIT THOSE HOTELS REVENUE. AND THEY ARE ALSO FINISHING THEIR FINAL BRAND REQUIRED REFRESH. THAT COST WAS HIGHER THAN ANTICIPATED. SO TOGETHER, THIS JUST MEANS THAT WE ARE CONTRIBUTING THE TOT FROM THOSE HOTELS TO THIS RESERVE FUND AGAIN, AND WE'RE ESTIMATING TO PAY A TOTAL OF 2.3 MILLION THIS YEAR. OF COURSE, THIS COULD CHANGE IF ANYTHING TURNS AROUND IN THE TURNS AROUND FOR TOT. THE CAPITAL SPENDING IS COMPLETE, SO THAT PART OF IT'S DONE, BUT IMPROVEMENT WOULD REQUIRE IMPROVED REVENUE. WE ALSO KIND OF LOOK AT THE REST OF OUR SPENDING AT THIS POINT IN THE YEAR. IF YOU'LL RECALL FROM LAST MONTH'S MEETING, WE OVERSPENT OUR SALARIES A BIT IN 24-25, BUT WE HAD PRETTY SIGNIFICANT CONTRACTS AND PROFESSIONAL SERVICES SAVINGS. THIS YEAR WE WANTED TO LOOK REALLY CLOSELY AT OUR SALARIES AGAIN. AND WE ARE ACTUALLY PROJECTING FAIRLY SIGNIFICANT SALARY SAVINGS. THIS REFLECTS SOME IMPROVEMENTS TO OUR BUDGETING ESPECIALLY FOR OVERTIME THAT I THINK WE'VE MENTIONED BEFORE HERE. AND THEN JUST KIND OF NATURALLY OCCURRING TURNOVER. SO INCLUDING ALL OF THESE ADJUSTMENTS WITH A, YEAH, INCLUDING ALL OF THE ADJUSTMENTS WE'RE AT AN ADDITIONAL $4.2 MILLION IN SPENDING. SOME DETAIL HERE, I KIND OF WENT THROUGH THIS ALREADY. SO I DON'T KNOW THAT I NEED TO WALK THROUGH THIS IN DETAIL, BUT LOOKING AT OUR INTERNAL SERVICES CITYWIDE, BECAUSE OTHER FUNDS APART FROM THE GENERAL FUND CONTRIBUTE TO THESE SERVICES, IT'S A $5.7 MILLION INCREASE OR ABOUT 14% OVER THE PRIOR YEAR. AND AGAIN, THIS IS REALLY DRIVEN BY OUR SELF-INSURANCE COSTS. YOU SAW THIS AGAIN, BUT HERE'S THE AMOUNT BY PLAN, AND THE TOTALS. WITH MID-YEAR, WE USUALLY ALSO PRESENT DECISION PACKAGES FOR COUNCIL APPROVAL. FOR OUR GENERAL FUND, THESE ARE NET ZERO AND REFLECT BASICALLY PROGRAM CHANGES. ONE IS RELATED TO A CONTRACT WE HAVE FOR OUR PARAMEDIC ASSESSMENT FEE. AND IT'S JUST TO ACKNOWLEDGE THAT WE ARE COLLECTING ALL THE REVENUE AND PAYING THE CONTRACTOR VERSUS NETTING THE EXPENDITURE FROM THE REVENUE THE CITY RECEIVES, SO IT'S A NET ZERO. WE ALSO HAVE AN ADJUSTMENT THAT IS OFFSET WITH REVENUE FOR OUR CONTRACT BUILDING PLAN REVIEW. THIS IS RELATED TO SEVERAL VERY LARGE PROJECTS THAT ARE COMMUNITY DEVELOPMENT DEPARTMENT EXPECTS TO RECEIVE. WE WILL COLLECT THE TOTAL REVENUE FOR THEM, BUT WE WILL CONTRACT OUT THE ACTUAL PLAN CHECK SERVICES. SO OF THIS LARGE AMOUNT WE'LL NEED TO PAY A LARGE AMOUNT TO A VENDOR. WHAT WE'RE RECOMMENDING HERE IS OFFSETTING REVENUE AND EXPENSE. THE CITY WILL COLLECT MORE REVENUE THAN WE PAY OUT. BUT WE DO NEED TO PAY THE VENDOR. SO WE ARE PROPOSING TO ADD THIS TO THE BUDGET AND WE'LL SEGREGATE THAT FROM THE REGULAR BUDGET. SO THIS WOULDN'T BE A PART OF THEIR CORE BUDGET MOVING FORWARD AND REALLY REFLECTS THESE SPECIFIC ADDITIONAL PROJECTS. AND FINALLY, IN OUR OTHER FUNDS, WE MAINLY HAVE JUST ADJUSTMENTS. WE HAVE A FEW ITEMS REFLECTING NEW GRANT REVENUE. WE HAVE COMMUNITY DEVELOPMENT BLOCK GRANT, SOME PROPOSITION 68 FUNDING. I'M JUST READING THESE. I'M SO SORRY, BUT THIS IS ADDITIONAL FUNDING WE'VE RECEIVED FOR SPECIFIC PROJECTS. NORMALLY, WE WOULD KIND OF PRESENT THESE TO COUNCIL AS ONE TIME ADMIN REPORT ITEMS. BUT BECAUSE WE'RE PRESENTING CHANGES TO COUNCIL WE'RE ADDING THESE. THIS REPRESENTS OUR 25-26 PLAN FOR OUR CDBG PROGRAM. [00:20:01] OUR PROPOSITION 68 FUNDING IS FOR ALTA VISTA TENNIS COURT RESURFACING. OUR MEASURE A FUNDING IS FOR THE VETERANS LIBRARY, AND THESE ARE L.A. COUNTY GRANT FUNDS. AND THEN FINALLY, WE HAVE A STATUE THAT WE ARE GOING TO BUILD USING JOHN PARSONS ART FUNDING. WE HAVE TWO STAFFING REORGANIZATIONS, BOTH ARE OFFSET WITH EITHER OTHER STAFFING ADJUSTMENTS OR IN THE CASE OF IT WITH REDUCTIONS TO, TO THEIR PROFESSIONAL SERVICES BUDGET. WE HAVE OUR ANNUAL REFUSE RATE ADJUSTMENT AND WE HAVE SEVERAL VEHICLE REPLACEMENT FUND PURCHASES THAT ARE REQUIRED FOR OPERATIONAL NEEDS. SO FINALLY, WHEN WE LOOK AT OUR ESTIMATED FUND BALANCE, AS YOU'LL RECALL FROM OUR LAST MEETING WE ARE ENDING WITH ABOUT $3.15 MILLION ESTIMATED ENDING FUND BALANCE. THIS IS AFTER COUNCIL HAD MADE SOME CHANGES. WE ARE PROPOSING REVENUE ADJUSTMENTS OF ABOUT 2.4 MILLION FOR REVENUE AND OVERHEAD. OUR DECISION PACKAGES WHICH ARE OFFSETTING ARE ABOUT $1 MILLION. ON THE EXPENDITURE SIDE, WE HAVE INTERNAL SERVICES, WHICH INCLUDES THE OVERHEAD COST THERE WE HAVE OUR AUTHORITY FUNDED RESERVE CONTRIBUTIONS. WE'RE OFFSETTING THIS WITH OUR ANTICIPATED PERSONNEL SAVINGS. AND THEN WE HAVE THE OFFSETTING PIECE OF OUR DECISION PACKAGES. SO INCLUDING ALL THESE ESTIMATES WE PROJECT HAVING ABOUT $1.3 MILLION REMAINING AT THE END OF THE YEAR. THIS IS STILL SOMEWHAT OF A CONSERVATIVE ESTIMATE. IF AGAIN, AS YOU'LL REMEMBER, IN ADDITION TO PERSONNEL, WE DID HAVE FAIRLY SIGNIFICANT CONTRACTS AND PROFESSIONAL SERVICES SAVINGS LAST YEAR. WE DON'T TEND TO PROJECT TRY TO PROJECT THAT AS MUCH BECAUSE IT'S VERY PROJECT DEPENDENT. SO IT'S, YOU KNOW, LESS PREDICTABLE. BUT WE DEFINITELY DO NOT RECOMMEND HAVING ANY ADDITIONAL SPENDING AT THIS POINT IN TIME. AND FINALLY, WE WANTED TO TAKE THIS OPPORTUNITY TO REDUCE, OR TO REDUCE, TO INTRODUCE A FEW COST SAVINGS OR REDUCTION ITEMS. JUST KIND OF SIGNAL THESE TO GET COUNCIL'S INITIAL REACTION AND DIRECTION AS WE GO INTO THE 26-27 BUDGET. WE ARE VERY COGNIZANT OF THE PRETTY SIGNIFICANT EXPENSES THAT WE ARE ADDING TO THE BUDGET HERE. AND AS COMMISSIONER SHERBIN MENTIONED, SOME OF THE REVENUE CHALLENGES THIS IS BY NO MEANS AN EXHAUSTIVE LIST OF WHAT WE'RE GOING TO LOOK AT DURING THE BUDGET, BUT THERE ARE A COUPLE ITEMS WE WANTED TO HIGHLIGHT. FIRST IS OUR CROSSING GUARDS. YOU MAY REMEMBER THIS FROM OUR BUDGET DISCUSSIONS LAST YEAR, BUT THE CITY STAFF'S ABOUT 27 CROSSING GUARD STATIONS THROUGHOUT THE CITY, WHICH IS QUITE A LOT COMPARATIVELY, AND WE PAY FOR MOST OF THEM. SOME CITIES DO THIS, SOME CITIES SPLIT WITH THE SCHOOL DISTRICT. BUT THIS IS SOMETHING THAT WE RECOMMEND OR WE'RE ASKING COUNCIL DIRECTION TO PERHAPS RECONSIDER FOR, AS WE GO INTO 26-27. RELATED TO OUR LARGE INSURANCE COSTS. WE'VE SPENT SOME TIME LOOKING AT THE CITY'S LIABILITY, PROPERTY LIABILITY PREMIUMS. SO WHAT WE'VE REALIZED IS ABOUT A MILLION OF THE 1.7 MILLION TOTAL PREMIUM IS RELATED TO EARTHQUAKE INSURANCE AND DOING SOME COMPARATIVE RESEARCH. MANY CITIES COVER FROM NONE TO VERY MINIMAL BUILDINGS WITH FOR EARTHQUAKE. SO, AND FOR THE CITY'S SPECIFIC POLICY, WE HAVE ABOUT $234 MILLION OF ASSESSED VALUE COVERED THROUGH EARTHQUAKE INSURANCE, $234 MILLION IN BUILDING VALUE. BUT OUR CAP FOR THE MOST WE COULD POSSIBLY RECEIVE IS ABOUT 100 MILLION. SO JUST LOOKING AT THOSE NUMBERS AND CONSIDERING, YOU KNOW, WHAT OUR INSURANCE PROVIDER AND SOME OTHER CITIES HAVE SAID, WE THINK IT'S WORTH LOOKING INTO DROPPING SOME OF THE BUILDINGS. ANOTHER ITEM WITH OUR INSURANCE COVERAGE IS THAT IF IT'S, YOU KNOW, A HUGE CATASTROPHIC EVENT, WE'RE ACTUALLY SHARING THAT $100 MILLION WITH OTHER CITIES IN OUR POOL. SO WE MAY END UP IN THAT KIND OF EVENT GETTING A THIRD OF IT. SO WHAT WE'RE ASKING COUNCIL TO DO IS TAKE A LOOK AT SOME OF THE ITEMS LISTED ON OUR INSURANCE AND LET US KNOW WHETHER, YOU KNOW, THEY THINK IT MAKES SENSE TO KIND OF BRING THAT LIST DOWN. WE'RE ALSO CONSIDERING INCREASING OUR DEDUCTIBLE FOR LIABILITY INSURANCE. [00:25:03] THE CITY HAS EXPERIENCED VERY FEW CLAIMS. I THINK THE CITY MANAGER SAID HE REMEMBERS SUBMITTING ONE CLAIM IN HIS 20 YEARS HERE. SO IF WE INCREASE OUR DEDUCTIBLE, WE'LL BE ABLE TO DECREASE OUR ONGOING COSTS BY A SMALLER AMOUNT, BUT DECREASE THEM WITHOUT A SIGNIFICANT ADDITIONAL RISK TO THE CITY. OUR LAST ITEM HERE IS OUR PENSION DEBT. AS I SHARED A LITTLE BIT WITH THIS COMMISSION, WE DID, SO OUR, WE DID RECEIVE AN UPDATE THROUGH CALPERS AND THROUGH THEIR PROJECTION TOOL FOR WHAT OUR UNFUNDED LIABILITY MIGHT LOOK LIKE INCORPORATING THE LAST YEAR'S POSITIVE RETURNS. WHAT THAT LOOKS LIKE IS A PRETTY SIGNIFICANT DECREASE TO OUR OVERALL UNFUNDED LIABILITY DOWN TO ABOUT 18.8 MILLION WITH OUR MISCELLANEOUS PLAN BEING POTENTIALLY OVERFUNDED. SO WHILE THAT'S GREAT FOR OUR UNFUNDED LIABILITY OVERALL, IT DOESN'T ACTUALLY DO ANYTHING FOR OUR ANNUAL UNFUNDED LIABILITY PAYMENTS. SO ACCORDING TO THEIR CURRENT PROJECTIONS, WE'LL BE PAYING $4.2 MILLION NEXT YEAR. AND THOSE PAYMENTS WILL STAY ANNUALLY ABOVE 3 MILLION FOR THE NEXT 3 TO 5 YEARS, ACCORDING TO THEIR MOST RECENT PROJECTIONS. SO WHAT WE'RE LOOKING AT, AS YOU KNOW, WE HAVE SOME CHALLENGING YEARS IS WHETHER OR NOT IT MAKES SENSE TO LOOK AT OTHER OPTIONS LIKE POTENTIALLY ANOTHER REFINANCING. SINCE WE COULD POTENTIALLY HAVE THE OPPORTUNITY TO HAVE A SMALLER AMOUNT PAY A SMALL AMOUNT ANNUALLY AND ALSO TO, YOU KNOW, SOMEWHAT GUARD OURSELVES AGAINST THE FLUCTUATIONS WE SEE WITH CALPERS. SO AGAIN, HERE, WE'RE NOT, WE DON'T NEED TO TAKE IMMEDIATE ACTION. I THINK YOU KNOW, WE WOULD DEFINITELY INVOLVE THIS COMMISSION IN THAT EVALUATION IF COUNCIL IS INTERESTED IN US PURSUING IT FURTHER, BUT WE WANTED TO INCLUDE IT AS AN ITEM FOR THEIR CONSIDERATION. YOU DON'T HAVE ANY DOLLAR FIGURES FOR THESE ITEMS? WE DO NOT AT THE MOMENT. SOME ESTIMATES AT LEAST. SO WE HAVE A FEW ESTIMATES. I MEAN, FOR THE PENSION DEBT, I HAVE TO SAY WE DON'T HAVE AN ESTIMATE AT THIS POINT. WE'D HAVE TO DO A LOT MORE WORK TO, YOU KNOW, FIGURE OUT WHAT THE POSSIBLE DELTAS WILL BE. OUR INSURANCE, YOU KNOW, POTENTIALLY WE COULD CUT ABOUT HALF $1 MILLION FROM OUR ANNUAL PREMIUM JUST BY REDUCING THE NUMBER OF PROPERTIES THAT WE COVER. SO IT'S WITHIN OUR $100 MILLION RECOVERY. FOR CROSSING GUARDS, THE NUMBER IS GOING TO BE SMALLER. I THINK WE SPEND ABOUT $600,000 ON THIS ANNUALLY. SO AGAIN, THE NUMBER THERE ISN'T HUGE, BUT IT'S AN ITEM THAT'S A LITTLE BIT EXTRA THAT, YOU KNOW, POTENTIALLY IN TIMES WHEN OUR BUDGET IS NOT VERY STRONG, WE MAY WANT TO LOOK AT NOT CONTINUING. AND AS I MENTIONED, THIS IS BY NO MEANS AN EXHAUSTIVE LIST OF WHAT WE'RE LOOKING AT FOR THE BUDGET. WE JUST WANTED TO SIGNAL THESE FOR COUNCIL FOR THEIR INPUT. YOU NEED TO SHOW THE BEST POSSIBLE ESTIMATE. WITHOUT THE ESTIMATE, THOSE WORDS DON'T MEAN ANYTHING. SO AGAIN, FOR THE MOST PART HERE, WE'RE NOT ASKING COUNCIL TO TAKE ACTION IMMEDIATELY. WHAT WE'RE ASKING THEM TO DO IS DIRECT STAFF REGARDING WHETHER WE WANT, WHETHER THEY WANT US TO LOOK INTO THIS AND POTENTIALLY INCLUDE THESE FOR THE 26-27 BUDGET. STEPHANIE, WE DISCUSSED THE UAL IN BETWEEN THE MEETING, CLARIFY A COUPLE OF POINTS FOR ME. THE AMORTIZATION SCHEDULE WE WERE LOOKING AT THEN WAS OVER A, I THINK A 20-YEAR PERIOD. YES. AND BASED ON WHAT YOU'RE SAYING NOW, WE THINK THE UAL IS GOING TO DECLINE TO YOU SAID 18 MILLION OR SO. AND IF WE'RE PUTTING 3 OR 4 MILLION, IF WE'RE PAYING THAT AT THE RATE OF 3 OR 4 MILLION PER YEAR, AND WE MAKE THE 6.8 AND CALPERS MAKES THE 6.8% RETURN, WE WOULD AMORTIZE THAT IN ABOUT 4 OR 5 YEARS. HAVE THEY, HAS CALPERS CHANGED THE WAY THIS HAS TO BE REPAID? THEY HAVE NOT. SO THE ESTIMATE THEN OF THE 3 TO 4 MILLION. OH, I SEE WHAT YOU'RE SAYING. NO. SO WE WOULDN'T. THAT'S A GREAT POINT. CALPERS HAS NOT CHANGED AND WE WOULD NOT EXHAUST OUR, WE WOULD STILL BE PAYING AN UNFUNDED LIABILITY PAYMENTS THROUGH THAT THROUGH THAT WHOLE CYCLE. I'M SORRY, SAY THAT AGAIN. SO AS YOU MENTIONED, WE'RE AMORTIZING EACH OF OUR, YOU KNOW, [00:30:02] KIND OF YEAR EXPERIENCES OVER 20 YEARS. SO EVEN AFTER WE'VE PAID DOWN THAT 18 MILLION OR WHATEVER IT IS. WE WILL STILL BE MAKING UNFUNDED LIABILITY PAYMENTS RELATED TO THOSE PRIOR, RELATED TO THOSE PRIOR LOSSES. SO IT'S NOT THAT WE'LL JUST PAY DOWN THE. THAT I DON'T UNDERSTAND. WHEN WE DID THE BOND ISSUE. FOR ABOUT 30S WE WERE AT, AT 100% FUNDED, WHICH MEANT WE HAD ZERO UAL. AND SINCE THEN, IN THE FOUR YEARS SINCE THEN, CALPERS HAS UNDERPERFORMED THEIR ACTUARIAL ASSUMPTION ON AVERAGE, BY ALMOST 2% PER YEAR WITH A LOT OF VOLATILITY IN THERE. SO THAT THAT 50 MILLION NOW AND 18 MILLION AFTER WE ADJUST IT FOR FISCAL 25 RETURNS. I GUESS DROPS TO 18 MILLION. I DON'T UNDERSTAND WHY WE'RE IF WE'RE IF WE'RE GOING TO PAY THAT DOWN IN IN FOUR YEARS, WHICH WE WILL AT THE RATE OF 3 TO 4 MILLION PER YEAR. THERE'S NOTHING LEFT. THERE'S NOTHING. THERE'S NO UAL LEFT. YES, SO THAT IS TRUE. AND I DID TALK TO OUR ACTUARY AND HE SAID THAT AT THE POINT THAT A PLAN IS FULLY FUNDED, WE WILL CEASE PAYING, WE WILL CEASE HAVING AN UNFUNDED LIABILITY FOR THAT, FOR THAT PLAN. OKAY. SO BUT I WAS LOOKING AT THERE, I THINK I SENT THIS TO YOU. I WAS LOOKING AT THE CALPERS, YOU KNOW, PROJECTION TOOL, AND I BELIEVE I'D HAVE TO LOOK AT THIS FROM MY MEMORY, BUT WE HAVE UNFUNDED LIABILITY PAYMENTS IN THE PROJECTION GOING OUT ABOUT TEN YEARS. BUT IT MAY, I'LL HAVE TO LOOK AT THAT. YEAH, WE NEED TO LOOK INTO THAT. MY UNDERSTANDING WAS THAT WHEN WE DID THE BOND ISSUE AND PAID THAT 215 MILLION TO CALPERS, THE UAL WENT AWAY. SO IT MAY BE THE DIFFERENCE WITH MAKING AN ADDITIONAL DISCRETIONARY PAYMENT, LIKE A LARGE ONE-TIME PAYMENT VERSUS MAKING OUR ANNUAL REQUIRED CONTRIBUTIONS. OKAY. BECAUSE IF AT ANY TIME WE MAKE A ONE-TIME PAYMENT BASED ON, YOU KNOW, WE ASKED THEM WHAT THE PAYOFF AMOUNT IS, THEY'LL TELL US THAT BRINGS OUR UAL TO ZERO. OKAY. I'LL TAKE A LOOK AT THE PROJECTION AGAIN. CONFIRM TO YOU. IT SEEMS WEIRD. CONFIRM WITH YOU, SIR. AND THEN AT THE LAST MEETING, WE WERE, WE WERE LOOKING AT THE POSSIBILITY OF HAVING ENOUGH MONEY TO, TO PAY BACK THE CALPERS RESERVE. AND IT LOOKS LIKE NOW WE DO NOT HAVE ENOUGH MONEY TO DO THAT. WE DO NOT. HOWEVER, THAT'S ANOTHER ITEM THAT I THINK WE'LL BE KEEPING IN MIND AS WE LOOK TO THE 26-27 BUDGET. SOMETHING THAT THE CITY MANAGER HAS SAID IN EVERY BUDGET DISCUSSION WE'VE HAD IS THAT WE REALLY WANT TO AVOID TAKING ANYTHING ELSE FROM THERE. AND THAT'S A PRIORITY FOR US TO REFILL. AND WE ENDED UP WITH A BALANCED BUDGET FOR FISCAL 26. BUT WITH THESE DIFFERENCES IN INCOME AND EXPENSE, IT WOULD SEEM THAT THAT GOING FORWARD WITH THOSE ITEMS UNCHANGED, WE WOULD HAVE A DEFICIT IN FISCAL 27. EXACTLY. SO YEAH, THAT'S SOMETHING THAT WE'RE GOING TO BE LOOKING AT WITH THE BUDGET. SO YEAH, FOR EXAMPLE, YOU KNOW, EACH YEAR WE PRESENT DECISION PACKAGES WHICH ARE KIND OF PROGRAM IDEAS TO CITY COUNCIL FOR CONSIDERATION. WE HAVE THE CITY'S CORE BUDGET, WHICH IS JUST THE BASIC TO KIND OF KEEP THE LIGHTS ON, AND KEEP EVERYBODY HIRED. ANYTHING BEYOND THAT STAFF NEEDS TO REQUEST AN ADDITIONAL APPROPRIATION FOR AND THAT'S WHAT WE PUT FORWARD TO CITY COUNCIL. SO ONE THING THAT CITY MANAGER HAS ALREADY ASKED US TO LOOK AT IS THE TOTAL OF OUR ONE TIME ITEMS THAT WE'VE FUNDED IN THE PAST TWO YEARS. LAST YEAR, FOR EXAMPLE, WE FUNDED ABOUT $2 MILLION OF ONE TIME ITEMS IN THE GENERAL FUND. SO, YOU KNOW, SOME OF THOSE ARE MORE IMPORTANT THAN OTHERS. SOME OF THOSE ARE ONE TIME ITEMS THAT WE KIND OF NEED TO SPEND EVERY YEAR. BUT THAT'S AN EXAMPLE OF A PLACE WE COULD LOOK TO START, YOU KNOW, REDUCING SOME FUNDS FROM THE BUDGET. IT LOOKS LIKE BUDGETING FOR FISCAL 27 IS GOING TO BE VERY INTERESTING. IT WILL BE YES. QUESTION. FURTHER QUESTIONS OF STEPHANIE? [00:35:07] OH, I HAVE A COUPLE MORE SLIDES. OKAY, COOL. I'LL GO THROUGH THEM QUICKLY. SO OUR NEXT STEP IS GOING TO BE BUDGET INPUT WITH THE CITY MANAGER AS HAPPENS EVERY YEAR. I'LL REMIND THIS COMMISSION THAT OUR APRIL MEETING IS RESCHEDULED TO APRIL 23RD. SO IT'LL BE A BIT LATER THAN WE NORMALLY DO THIS MEETING. ALSO TAKE THIS MOMENT TO SAY THAT OUR CIP MANAGER REMINDED US WE ALSO HAVE THE JOINT PUBLIC WORKS AND BUDGET AND FINANCE COMMISSION MEETING SHORTLY. SHORTLY AFTER THIS ONE. SO IT'LL BE AT THE END OF APRIL. WE'LL REMIND YOU AT THAT TIME, BUT THAT WILL BE A GOOD DISCUSSION FOR YOU BOTH ON THE CAPITAL BUDGET. SO THAT MEETING WILL BE IN MAY? SO THE MEETING WITH THE CITY MANAGER, THIS WILL BE AT YOUR NEXT REGULAR MEETING, WHICH IS APRIL 23RD AND THE BUDGET AND FINANCE JOINT MEETING WITH THE PUBLIC WORKS COMMISSION IS APRIL 27TH. OKAY. WE'LL SEND THAT TO THE COMMISSION. OKAY. THE OTHER ONES, WE DON'T NEED TO LOOK AT THEM IN DETAIL RIGHT NOW, BUT I'LL SEND THESE TO YOU. I JUST WANTED TO MAKE SURE YOU HAD YOUR REGULAR REVENUE AND EXPENDITURE SECOND QUARTER SLIDES BECAUSE THIS, WHOOPS, THE MID-YEAR PRESENTATION KIND OF TAKES OVER YOUR Q2 AGAIN. THERE'S NOTHING NOTHING DIFFERENT YOU NEED TO SEE HERE. BUT I'LL SHARE THIS WITH YOU AND YOU CAN KIND OF LOOK AT IT AT YOUR LEISURE. I WILL NOTE THAT, YOU KNOW, THE PERCENT RECEIVED TO DATE COMPARED TO PRIOR YEARS AND THIS INCLUDES TRANSFERS IN, SO IT'S SKEWED A BIT. IT'S ACTUALLY NOT REALLY DIFFERENT FROM PRIOR YEARS, WHICH YOU KNOW, IS SOMEWHAT OF A GOOD SIGN. I MEAN, I DON'T KNOW IF IT'S A GREAT SIGN BECAUSE WE YOU KNOW, ARE QUITE SURE SOME OF THESE REVENUES WON'T MATERIALIZE. BUT EVEN WITH THE CHALLENGES THAT WE SEE, WE'RE STILL SOMEWHAT PARALLEL TO PRIOR YEARS IN THE REVENUE THAT WE'VE RECEIVED. AND THEN, OH, I FORGOT MY HEADING HERE, I APOLOGIZE. AND THIS IS AGAIN, OUR EXPENDITURES YEAR TO DATE. A COUPLE THINGS I'LL JUST POINT OUT HERE. ONE IS THE PERSONNEL AND FRINGE. SO YOU CAN SEE THOSE AT 44% AND 47% RESPECTIVELY. IF YOU LOOK BACK AT 24-25 PERSONNEL IS A BIT HIGHER. AND YOU CAN SEE FRINGE IS ALREADY ABOVE 50%. SO THIS IS SOMETHING THAT WE'LL LOOK AT AND BACKS UP OUR CALCULATION THAT WE SHOULD HAVE SOME SAVINGS AT YEAR END. THE REMAINING ITEMS WITHIN OUR GENERAL FUND SPENDING ARE AGAIN A LITTLE BIT MORE PROJECT BASED, BUT THEY ARE ON TRACK AND WITHIN BUDGET. YEAH, I THINK THAT'S ALL I HAD TO SAY HERE, BUT I JUST WANTED TO MAKE SURE THAT WE PROVIDED THIS LEVEL OF DETAIL FOR YOU. AND THEN FINALLY, I WANTED TO. OH, I'M SO SORRY. I LEFT MY OLD ONE SECOND BECAUSE I REALLY WANT TO TAKE OUT MY OLD TEXT HERE. I ALSO WANTED TO SHOW YOU JUST THE SPENDING BY DEPARTMENT THROUGH THIS POINT IN THE FISCAL YEAR. AGAIN, THIS INCLUDES ALL FUNDS. SO THE, THE TOTALS WILL LOOK A LITTLE BIT. WELL, THE TOTALS ARE STILL ABOUT THE SAME. SO THIS INCLUDES ALL FUNDS. AND THAT SKEWS SKEWS SOME OF THE TOTALS SOMEWHAT. BUT I WANTED TO POINT THIS OUT TO YOU. ALSO NOTE THE LAST ITEM ON THERE, THE CAPITAL PROJECTS. I ALSO INCLUDED AS AN ATTACHMENT TO THIS REPORT AS I'VE STARTED TO DO YOUR CAPITAL SPENDING YEAR TO DATE. JUST SO THAT YOU'RE KIND OF ABLE TO TRACK THAT AS WE GO THROUGH THE YEAR. AND THEN CITYWIDE, INCLUDING ALL FUNDS FOR ABOUT 45%. AND THAT CONCLUDES MY PRESENTATION. SO YOUR ACTION FOR THIS EVENING IS TO RECEIVE AND FILE THE REPORT AND IDENTIFY ANY INPUT THAT YOU WOULD LIKE TO PROVIDE TO THE CITY COUNCIL WHEN WE MEET WITH THEM NEXT TUESDAY. OKAY. OKAY. WE CAN DO THIS NOW. YEAH, IF YOU WOULD LIKE TO SPEAK ON THIS ITEM, YOU CAN, BUT WE'VE ALREADY DONE THE NON-AGENDA OPEN DISCUSSION. SO. OKAY. ALL RIGHT. OKAY. SINCE WE'RE TALKING BUDGET, WE'LL TRY THAT. MY NAME IS GIL ESCONTRIAS. I LIVE IN DISTRICT ONE. [00:40:06] I BOUGHT MY APOLOGIES. OKAY. ALTHOUGH THIS BODY SERVES AS AN ADVISORY CAPACITY. EACH OF YOU IS ALSO RESIDENT IN A TAXPAYER WHO UNDERSTANDS THE IMPORTANCE OF FIDUCIARY RESPONSIBILITY AND PROPER STEWARDSHIP OF PUBLIC FUNDS. YOUR MANDATE IS CLEAR. IS TO MAINTAIN A CONTINUOUS STUDY OF THE CITY'S FINANCES, INCLUDING THE SOURCE OF MUNICIPAL REVENUE AND THE PROPER METHODS OF SPENDING PUBLIC MONEY. WITH THAT RESPONSIBILITY IN MIND, I WOULD LIKE TO ADDRESS A DOCUMENT THAT YOU GUYS RECEIVED CALLED HOMELESS SPENDING BY TYPE PROGRAM AND SOURCE, WHICH WAS PROVIDED TO THIS COMMITTEE SOMETIME OR COMMISSION RATHER SOMETIME BETWEEN THE SPRING AND SUMMER OF 2025 AND LATER PRESENTED TO THE FULL CITY COUNCIL. THIS INCLUDED CONCERNS ABOUT SPENDING UTILIZING RATHER CONCERNING THE HOMELESS PROGRAM. OKAY. IT IS CLEAR THAT AN IMPORTANT CLARIFICATION NEEDS TO BE MADE. I RECEIVED THIS DOCUMENT AND IT WAS REFERRED TO AS AN AUDIT OF THE HOMELESS ISSUES AND THE FUNDS THAT THE CITY ATTORNEY WAS SPENDING. OKAY. I WOULD LIKE TO POINT OUT THE FACT THAT IT IS NOT AN AUDIT. IT WAS NEVER AN AUDIT. YET IT IS BEING PRESENTED TO THE COMMUNITY AS AN AUDIT IS ACTUALLY A REPORT OF WHAT WAS EXPENDED AND WHAT WAS SPENT. OKAY. MY CONCERN WAS WHETHER OR NOT THERE WAS QUESTIONING OF HOW THAT MONEY WAS SPENT AND MOST IMPORTANTLY, WHY IT WAS SPENT. OKAY. WHEN YOU START LOOKING AT THAT IN REVIEWING THE DOCUMENT, SEVERAL EXPENDITURES APPEAR QUESTIONABLE OR AT VERY LEAST REQUIRE FURTHER EXPLANATION. OKAY. WE SHOULD NOT SETTLE FOR THE STATUS QUO, NOR SHOULD WE ACCEPT TRUST ME FORM OF GOVERNMENT WHEN IT COMES TO THE EXPENDITURE OF PUBLIC FUNDS. AUDITING CONTROLS EXIST SPECIFICALLY TO PROTECT FUNDS FROM FRAUD, WASTE, AND ABUSE OF TAXPAYER FUNDS. WHEN SIGNIFICANT PUBLIC DOLLARS ARE INVOLVED, PARTICULARLY IN AN AREA THAT ARE CRITICAL AND COSTLY AS HOMELESSNESS, THE PUBLIC DESERVES TRANSPARENCY AND ACCOUNTABILITY. IT'S WORTH NOTING THAT THIS SIMILAR INFORMATION THAT WE ASKED ABOUT. I AM A FORMER PUBLIC SAFETY COMMISSIONER WHO SUDDENLY IS OUT OF A JOB. WHY? BECAUSE WE ASKED QUESTIONS. AND ONE OF THE BIGGEST QUESTIONS WE ASKED WAS, HOW ARE YOU SPENDING THE HOMELESS MONEY? AND THEN THE CITY ATTORNEY SUDDENLY STOPPED COMING TO THE MEETINGS. SO AS A AS A, WHAT, 43 YEAR VETERAN OF THE POLICE DEPARTMENT. OKAY. WHEN I CONDUCT INVESTIGATIONS, WHEN PEOPLE DON'T WANT TO ANSWER QUESTIONS, OKAY, IT SENDS UP A RED FLAG. NOW, IF THESE PROGRAMS ARE AS GREAT AS THEY SAY THEY ARE, AND I WOULD VENTURE TO SAY THAT SOME OF THEM ARE REALLY GOOD, I SUPPORT IT AS WELL AND FINANCIALLY AS WELL. BUT IF IT'S THAT GOOD, THEN WHY DON'T WE HAVE AUDITS? WHY DON'T WE HAVE DOCUMENTATION? AND WHY IS IT NOT PRESENTED TO EVERYBODY? OKAY. THEREFORE, I RESPECTFULLY URGE THIS COMMITTEE COMMISSION TO RECOMMEND AND REQUEST A FORMAL INDEPENDENT AUDIT OF THE CITY'S HOMELESS EXPENDITURES, AND THAT YOU ASK QUESTIONS OF, WHY THE MONEY IS GOING, WHERE IT'S GOING, HOW IT IS BEING SPENT, AND ESPECIALLY OF HOW IT INNER WORKINGS OF IT. OKAY. THAT'S MY CONCERN AS WELL. OKAY. I ASK THAT YOU ASK THE HARD QUESTIONS, BUT I WILL TELL YOU THIS TIME. TIME IS UP. WE HAVE A MOTION TO EXTEND. SO MOVED. ALL IN FAVOR? AYE. THANK YOU. OKAY. I WOULD TELL YOU THIS, ASK HARD QUESTIONS. IT'S IMPORTANT THAT WE UNDERSTAND THIS AND AS WELL AS YOU UNDERSTAND IT. BUT I WILL CAUTION YOU, IF YOU ASK HARD QUESTIONS, YOU MAY BE OUT OF A JOB JUST LIKE I WAS. OKAY. BUT IT'S IMPORTANT BECAUSE AGAIN, AS A TAXPAYER, I WANT OUR CITY TO BE SUCCESSFUL. I WANT OUR MONEY TO BE UTILIZED PROPERLY. AGAIN, WE'VE GOT EMPLOYEES THAT ARE ASKING FOR RAISES AND THEY CAN'T GET THEM. WHY? BECAUSE THERE'S NO MONEY BEING SENT. THANK YOU. THANK YOU VERY MUCH AND ALSO FOR ALLOWING ME TO SPEAK. THANK YOU. THANKS. THANK YOU FOR YOUR COMMENTS. CAN I MAKE ONE CLARIFYING COMMENT? YES. I'LL JUST LIKE TO NOTE, YOU KNOW, A LOT OF THE FUNDING THAT THE CITY SPENDS ON HOMELESSNESS IS GRANT FUNDED AND THOSE THE GRANTOR DOES AUDIT THE CITY'S SPENDING. SO THE GRANTOR LOOKS AT EVERY SINGLE ITEM OF THE CITY'S SPENDING. THE CITY'S ENTIRE FINANCES ALSO HAVE AN INDEPENDENT AUDIT ANNUALLY. AND THE AUDITORS TEND TO LOOK VERY CLOSELY AT GRANT FUNDING AS WELL. SO I JUST OFFER THAT. MY RESPONSE WOULD BE IS THAT ALTHOUGH GRANTERS IN ESPECIALLY WITH FEDERAL MONEY, THEY'RE ONLY GIVEN WHAT THEY ASK FOR. OKAY. SOME OF THE EXPENDITURES THAT I LOOKED AT ARE VERY SUSPECT. I WOULD PUT IT TO YOU THIS WAY. WHY DO YOU NEED A POLICE OFFICER AT THE HOMELESS COURT WHEN YOU HAVE TWO DEPUTIES THERE? THOSE ARE THE HARD QUESTIONS THAT WE WANT TO ASK. I ALSO UNDERSTAND THAT THE CITY DOESN'T AUDIT, BUT IS VERY GENERAL AND DOES NOT SHOW ME THE RECEIPTS. OKAY. WHY DOES THE HOMELESS COORDINATOR HAD A CREDIT CARD AND HIS SPENDING $2,000 A MONTH ON IT? OKAY, THOSE ARE ALL PUBLIC RECORDS. HARD AND FAST RULES OF THAT FRAUD, WASTE AND ABUSE IS VERY IMPORTANT. OKAY. I'M NOT SAYING, AGAIN, I'M LOOKING AT IT FROM A POINT OF VIEW AS A TAXPAYER. [00:45:01] IF THIS IS A GREAT THING AND I'VE DONE WORK AT THE HOMELESS SHELTER, I'VE DONE THAT. I CURRENTLY DO A LOT OF VOLUNTEER WORK. I WORK AT THE DOG PARK. I WANT TO SEE A SUCCESS, BUT I ALSO WANT TO MAKE SURE THAT WE'RE USING OUR MONEY. BUT AGAIN, WHEN SOMEBODY THROWS AND THAT'S WHAT I TALK ABOUT THE STATUS QUO. TRUST US, WE KNOW WHAT WE'RE DOING. YOU DON'T KNOW WHAT YOU'RE DOING. OKAY. AND WHAT ENDS UP HAPPENING THEN IS THAT'S EXACTLY HOW THE CITY OF BELL WENT DOWN. THAT'S HOW A FEW OTHER CITIES ARE GOING DOWN, BECAUSE SUDDENLY WE'RE SPENDING A HECK OF A LOT OF MONEY THAT NOBODY WANTS TO EXPLAIN WHERE IT'S GOING. AGAIN, MA'AM, I APPRECIATE YOUR WORK, I TRULY DO. AGAIN, 40 YEARS RIGHT NOW AS A PUBLIC SERVANT. OKAY. AND THE THING IS, I'VE SEEN THIS A LOT. AS AN INVESTIGATOR, I USED TO INVESTIGATE CITY PEOPLE DOING AS WELL. OKAY. THANK YOU MA'AM. THANK YOU. THANK YOU. STEPHANIE THE LAST THREE SLIDES THAT YOU SHOWED US I HAVE TROUBLE PRINTING THOSE OFF AND WHERE THEY WERE SENT. CAN YOU SEND THOSE SLIDES TO THE COMMISSION MEMBERS? THOSE THREE PRETTY IMPORTANT SLIDES. TOTAL REVENUE. TOTAL EXPENSE. AND THEN THE LAST SLIDE, MAYBE I'M TRYING TO PRINT IT WRONG, BUT I HAD TROUBLE PRINTING THAT OUT. OH YEAH. NO PROBLEM. OKAY. OKAY, AS FAR AS THE DEPARTMENT OF FINANCE REPORT DO YOU HAVE A MOTION TO RECEIVE AND FILE? OH, SORRY. PUBLIC COMMENT FIRST. I WOULD LIKE TO RECOMMEND TO THE COMMISSION THAT YOU MAKE SOME PROPOSALS TO THE COUNCIL. FIRST OF ALL A QUARTERLY BUDGET SHOULD BE CREATED AND ACTUAL QUARTERLY ACTUAL SHOULD BE REPORTED AGAINST THOSE. AND THE STAFF SHOULD BE ABLE TO REPORT PLANS TO ADDRESS BUDGET VERSUS ACTUAL VARIANCES. THAT IS HOW THINGS ARE NORMALLY DONE IN THE FINANCE COMMUNITY. ALL THE CITIZENS RECOGNIZE THAT. THEY EVEN DO IT WITH THEIR OWN HOUSEHOLD BUDGET. WHY? THE FINANCE DEPARTMENT HAS CHOSEN TO COMPARE THE SPENDING OF THIS YEAR TO THE SPENDING OF LAST YEAR AND THINK THAT THINGS ARE ALL RIGHT. JUST BECAUSE THE SPENDING IS THE SAME AS LAST YEAR IS BEYOND ME TO FATHOM. MAYBE SHE CAN EXPLAIN IT. I ALSO SUGGEST THAT YOU DO. YOU REQUEST THE STAFF TO DO AN ANALYSIS OF THE CROSSING GUARD CUTS, BECAUSE THERE IS AT LEAST ONE COUNCIL PERSON WHO IS QUITE INTERESTED IN THIS PROGRAM AND CHILD SAFETY IS AT RISK HERE. SO THIS, ANY CUTS TO THIS PROGRAM OR ELIMINATION OF CROSSING GUARDS HAS TO BE DONE VERY CAREFULLY. YOU DO NOT WANT A CROSSING GUARD CUT. AND THEN THE NEXT WEEK A KID GETS RUN OVER. SO I THINK THIS HAS TO BE DONE VERY CAREFULLY. ALSO IT'S INTERESTING THAT PEOPLE EXPENSES ARE DOWN. I DON'T KNOW IF YOU, I'M SURE YOU LISTEN TO THE COUNCIL MEETINGS. THERE ARE NUMEROUS TIMES WHERE THE STAFF HAS CLAIMED THAT THEY'RE NOT ABLE TO RESPOND TO REQUESTS FROM THE COUNCIL BECAUSE THE STAFF IS SLAMMED, THE STAFF IS OVERWORKED. THERE'S NOT ENOUGH STAFF TO DO THE JOB. AND YET THERE'S, THE ONLY JUSTIFICATION IN THE REPORT THAT WE RECEIVED SAID SOMETHING ABOUT TRENDS ARE CONSISTENT WITH STATE AND REGION GENERALLY, WHICH IN THE REVISED PROJECTIONS SHOW AS FLAT STATEWIDE WITH SMALL INCREASES SEEN IN THE NEXT FISCAL YEAR. THAT DOESN'T SEEM TO BE JUSTIFICATION FOR THESE REDUCTIONS IN STAFF AND REDUCTIONS IN RESPONSE OF THE STAFF TO NEEDS OF THE COUNCIL. SO I RESPECTFULLY SAY YOU SHOULD RECOMMEND THAT TO THE TO THE COUNCIL AS WELL. THE BUDGET VERSUS ACTUAL THING. I REALLY THINK IT WOULD PROMOTE UNDERSTANDING IN THE COMMUNITY AS WELL OF HOW THE CITY IS PERFORMING. AND I THINK THAT THERE SHOULD BE MORE THOROUGH EXPLANATION OF THE VARIANCES, BECAUSE THERE ARE REAL PROBLEMS THAT DO AFFECT THE FINANCES. AND WHEN ELECTION TIME COMES AROUND, YOU WANT TO BE ABLE TO TO HAVE THE COMMUNITY ON YOUR SIDE TO ADDRESS THEM. SO THOSE ARE MY RECOMMENDATIONS. THANK YOU. OKAY. THANK YOU. CAN I MAKE ONE CLARIFYING POINT ON THE PERSONNEL COSTS? SO WHAT I MEANT TO COMMUNICATE WITH THE PERSONNEL SAVINGS IS NOT THAT PERSONNEL COSTS ARE DOWN. [00:50:02] PERSONNEL COSTS OVERALL ARE UP. THEY ARE JUST WE DON'T ANTICIPATE SPENDING ALL THAT WE'VE BUDGETED FOR PERSONNEL. SO DOES THAT MEAN LIKE YOU'RE LEAVING CERTAIN JOBS UNFILLED OR PROFESSIONAL SERVICES LOWER OR WHAT'S. USUALLY THAT JUST REFLECTS NORMALLY OCCURRING VACANCIES. OKAY. AND THE REASON WHY OUR SPENDING LAST YEAR KIND OF DIDN'T SHOW THIS IS BECAUSE WE BUDGETED LESS GENEROUSLY. INCLUDING KIND OF UNDER BUDGETING FOR OVERTIME LAST YEAR. THE REASON I WANTED TO POINT IT OUT IS THE, IS THAT WE DID MAKE THOSE ADJUSTMENTS. WHICH, YOU KNOW, WE SHOULD DO BECAUSE WE'D LIKE TO END UNDER BUDGET RATHER THAN OVER. MY ONLY PURPOSE IS JUST SAYING WE DO ANTICIPATE HAVING SAVINGS THIS YEAR, AGAIN, LARGELY RELATED TO REGULAR TURNOVER AND THE FACT THAT WE IMPROVED OUR BUDGETING. BUT OVERALL STAFF COSTS CONTINUE TO INCREASE. AND THE, YOU KNOW, KIND OF REGULAR VACANCIES MAY BE RELATED TO SOME OF THE ISSUES THAT MR. MUELLER MENTIONED IN TERMS OF STAFF, STAFF WORKLOAD. A QUESTION ON TIMING. HAVE YOU THIS REPORT WILL GO TO CITY COUNCIL OR ALREADY HAS GONE TO CITY COUNCIL? IT HAS NOT GONE TO CITY COUNCIL. SO THEY WILL GET IT TOMORROW. OKAY. OKAY. I THINK WE'RE READY TO VOTE ON RECEIVE AND FILE. ALL IN FAVOR? AYE. ANY OPPOSED? OKAY. DONE. I'M SORRY, WHO MADE THAT MOTION? OR. I MADE A MOTION TO RECEIVE AND FILE. OKAY. OKAY, MOVING ON TO ITEM G.2. DISCUSSION REGARDING THE CIP SUBCOMMITTEE ACTIVITY. WE. I GUESS I'M THE ONLY ONE OUT OF THE THREE MEMBERS WHO ARE ON THE SUBCOMMITTEE, AND WE HAD A MEETING WITH THE PLANNERS AND THE ENGINEER AND THE HEAD OF PLANNING, I THINK 4 OR 6 WEEKS AGO. AND IT WENT JUST AS I HAD ANTICIPATED. STIFF RESISTANCE TO CHANGE AND INSISTENCE ON CARRYING THE ACTIVITY JUST AS THEY HAVE DONE FOR MANY YEARS. SO I SPENT AN ENORMOUS AMOUNT OF TIME GOING THROUGH ALL THE COMPLETED PROJECTS THAT STEPHANIE WAS KIND ENOUGH TO SHARE WITH US ON A SPREADSHEET. AND THERE WERE TWO PROJECTS THAT I WENT INTO EVEN MORE DETAILS. ONE WAS THE JOB 41240, WHICH IS THE ANITA STREET AT PCH IMPROVEMENT, AND THE OTHER ONE WAS 40960 INGLEWOOD AVENUE AT MANHATTAN BEACH BOULEVARD - INTERSECTION IMPROVEMENT. AND SOME OF THE FACTS I LAID OUT BASED ON ALL THE FINISHED PROJECTS ARE ONE, AS I HAVE SAID REPEATEDLY IN THE PAST, CHANGE ORDERS ACCOUNTED FOR 80% OF THE FUNDS SPENT ARE. NUMBER TWO, THE ADMINISTRATIVE CHANGE ORDER POLICY WAS CREATED ON AUGUST 17TH, 1993. IT HAS NOT BEEN UPDATED OR CHANGED IN THE PAST 33 YEARS. PART OF THE FUNDING FOR CIP COMES FROM VARIOUS PROPOSITIONS. A MAJOR STATE TAX AND GRANTS. AND CHANGE ORDERS ARE FULLY FUNDED BY METRO MEASURES OR SIMILAR MEASURES AWARDED TO CONTRACTS CONTRACTORS WITHOUT GETTING COMPETITIVE BIDS, AND THE CHANGE ORDERS ARE APPROVED BY THE CITY COUNCIL MEMBERS AND MAYOR WITHOUT ANY DISSENT. SO PRETTY MUCH THEY ARE RUBBER STAMPED. IN FACT, THE LETTER FROM, LETTER FROM THE MAYOR IN RESPONSE TO MY LETTER TO HIM, THE DATE OF JULY 22ND, 2025, HE MENTIONED THREE THINGS. HE SAID CIPS ARE CONFUSING. RECOMMENDED IMPROVEMENTS SO THEY ARE MORE UNDERSTANDABLE, BUT SO FAR NO CHANGES. AND THIRD DEFICIT DRIVEN BY CIPS DEFERRED BY VARIOUS COUNCILS. SO THE ONE PROJECT THAT IS PROBABLY THE MOST COMPLICATED AND HAS TAKEN A LONG TIME TO FINISH WAS THE INGLEWOOD AVENUE AT MANHATTAN BEACH BOULEVARD -INTERSECTION IMPROVEMENT PROJECT. [00:55:05] JOB NUMBER 40960. IT STARTED BECAUSE OF THE FUNDING 5,175,000 FROM THE METRO AND THE. THERE WERE, I THINK, THREE CONTRACTORS WHO WORKED ON THIS. THIS WHOLE PROJECT LASTED FOR TEN YEARS IS NOT SOMETHING THAT WAS DONE IN ONE YEAR OR EVEN LESS THAN A YEAR. THE JUSTIFICATION FOR CHANGE ORDERS IN THE PAST HAS ALWAYS BEEN, WELL, IT TAKES TOO LONG, SO WE NEED TO SPEED THINGS UP. WHEN A PROJECT TAKES TEN YEARS TO FINISH, NATURALLY THERE IS NO URGENCY THERE. THERE WERE THREE CONTRACTORS INVOLVED BECAUSE IT'S A TECHNICALLY AND IMPLEMENTATION WISE, IT WAS A VERY COMPLICATED PROJECT AND THERE WERE SOME UNAVOIDABLE, UNANTICIPATED DELAYS. NO DOUBT ABOUT IT. AND NEW TECHNOLOGY AND SOME ACQUISITION OF LAND. SO THERE WERE LOTS OF ISSUES, SO I CAN UNDERSTAND, BUT THAT DOES NOT EXPLAIN OR JUSTIFY WHY WE WOULD NOT GET BIDS FOR THREE DIFFERENT PARTS OF THE JOB WHERE THREE DIFFERENT CONTRACTS WERE INVOLVED. I ONLY SAW ONE JOB WHERE BIDS WERE INVITED, THE OTHER TWO I DON'T SEE ANYTHING. NOT ONLY THAT, THE CHANGE ORDER AUTHORITY WAS RAISED FROM 25,000 TO 125,000. NOW, I DON'T KNOW IF THAT IS ONLY FOR THIS PROJECT OR FOR ALL THE PROJECTS. I WASN'T ABLE TO FIGURE THAT OUT. BUT THESE ARE THE THINGS I'VE SPENT 30 YEARS IN PROJECT MANAGEMENT AND PROCESS IMPROVEMENT ON THE PRIVATE SECTOR. SO THIS IS WHY I GOT SO INTERESTED. AND I'VE STATED MANY TIMES IN THE PAST THAT THE CITY OF FORT WAYNE, WHICH IS STILL KIND OF A GOLD STANDARD FOR 25 YEARS, IT HAS BEEN CONSIDERED AS ONE OF THE BEST MANAGED CITIES IN THIS COUNTRY. AND THEY HAD A MAYOR WHO CAME WITH A, WITH A SMALL BUSINESS BACKGROUND AND HE IMPLEMENTED SOME OF THESE PROCESS IMPROVEMENT TECHNIQUES AND SAVED $2 BILLION IN JUST ABOUT THREE YEARS. SO IT'S POSSIBLE IT CAN BE DONE. I'VE DONE IT MYSELF. AND THIS IS WHY I'M SO PASSIONATE ABOUT THIS. BUT ONE THING I HAVE SEEN IN ALL THE PRESENTATIONS IN THE PAST BY THE CITY MAYOR FOR THE PLANNING DEPARTMENT HEAD AND SOME OF THE PRESENTATIONS BY OUR FINANCE DIRECTOR. TWO THINGS. THERE IS TREMENDOUS RELUCTANCE TO CHANGE THE WAY THINGS ARE BEING DONE. AND SECONDLY, THE DATA COLLECTION AND ANALYSIS IS PRACTICALLY NON-EXISTENT. AND NOW WITH TODAY'S TECHNOLOGY, WITH THE AI TOOLS IT'S SO MUCH EASIER, FASTER, AND MORE THOROUGH TO GET THE ANALYSIS OF THE DATA. WITHOUT THE DATA, IS THE DATA THAT STEPHANIE GAVE US THAT ALLOWED US TO FIGURE OUT HOW MUCH MONEY WE ARE SPENDING WITHOUT GETTING COMPETITIVE BIDS. SO THESE ARE THE THINGS THAT THE ADMINISTRATION DEPARTMENT HAS TO DO. AND THAT THE REASON I KEEP BRINGING IT UP IS BECAUSE I THINK IT WAS LAST YEAR WHEN THE CITY VOTERS APPROVED A $93 MILLION BOND ISSUE AND THEY PUT ENORMOUS FAITH AND CONFIDENCE IN OUR ADMINISTRATION. AND IF WE MANAGE THAT PROJECT JUST THE WAY ALL THE OTHER PROJECTS HAVE BEEN MANAGED, WE GOT A LOT OF FUNDING FROM DIFFERENT SOURCES IN THE PAST. YOU'RE NOT GOING TO GET ANY MORE FUNDING THAN THIS. AND SOME OF THE STATEMENTS THE CITY MANAGER HAS MADE IN THE CITY COUNCIL MEETINGS. FRANKLY, IT IS DISTURBING, TO SAY THE LEAST. THIS IS THE STATEMENTS HE MADE IN THE DECEMBER MEETING. HE SAID WE REALLY WANTED $98 MILLION, BUT WE THOUGHT THAT WAS TOO MUCH, SO WE ASKED FOR 93. SO THERE IS NO DOCUMENTATION, NO RATIONALE, NO EXPLANATION OF WHY 93 IS ENOUGH, BUT WE REALLY NEEDED 98. SO AND NOW WITH THE INFLATION AND EVERYTHING ELSE THAT ALL THAT HAS TO BE CONSIDERED BEFORE YOU DO THE PLANNING AND WHAT IS WHAT I SEE HAPPENING IS BECAUSE OF THE TREMENDOUS DEPENDANCE ON THE CHANGE ORDERS, [01:00:05] THE INITIAL PLANNING IS DONE VERY POORLY AND THERE IS NO INCENTIVE TO DO IT BECAUSE WE CAN ALWAYS SOMETHING COMES UP, WE CAN ALWAYS SHOVE IT UNDER A CHANGE ORDER AUTHORITY AND GET THAT PASSED. SO THE LESS PLANNING YOU DO IN THE BEGINNING, MORE IS GOING TO CAUSE PROBLEMS. AND ESPECIALLY FOR THE BOND ISSUE IS GOING TO BE A VERY SERIOUS PROBLEM. MY TERM ENDS IN SEPTEMBER, SO BUT I WILL BE READING ABOUT IT IN EASY READER AND MIGHT EVEN JOIN MR. MUELLER TO ATTEND THE MEETINGS. BUT THIS IS REALLY. YOU CAN'T GET AWAY FROM IT THAT EASY. YEAH. AND THE OTHER THING THE CITY MANAGER SAID THAT I FIND EXTREMELY DISTURBING, HE SAID. IN AN IDEAL WORLD, THESE ARE THE ARE THE TEXT OF THE MINUTES OF THE MEETING. IN AN IDEAL WORLD, WE WOULD HAVE ANOTHER $55 MILLION TO PLAY WITH, BUT WE DON'T. NOW, TO ME, HAVING $50 MILLION TO PLAY WITH ON A $93 MILLION DOLLAR BOND ISSUE TO ME IS JUST ASTRONOMICAL. UNBELIEVABLE. SO IF THAT'S THE MENTALITY, THAT'S THE ATTITUDE AND THAT'S THE OPERATING STYLE THE ADMINISTRATION WANTS TO PURSUE, ESPECIALLY ON THIS BOND ISSUE PROJECT. IT WON'T TAKE TOO LONG FOR THE VOTERS TO GET TURNED OFF AND GET VERY UPSET, AND THEY HAVE THEIR WAYS TO SHOW IT. SO WE NEED TO HAVE A COMPLETE OVERHAUL OF THE ENTIRE PROCESS. GET SOMEBODY WORKING FULL TIME, AN INDEPENDENT CONSULTANT WHO CAN MAKE THINGS HAPPEN AND CHANGE THE, THE SYSTEM AND CHANGE THE PROCESS WAS SIMPLIFIED, IMPROVE IT, REDUCE THE COST, MAKE IT MORE EFFECTIVE AND SAVE MONEY IN THE LONG RUN. OTHER CITIES HAVE DONE IT. THERE'S NO REASON WHY WE CANNOT. WE SHOULD NOT, AND WE MUST NOT DO IT. THAT'S MY FINAL WORDS FOR WHAT IT IS WORTH. WELL, I HOPE THAT'S NOT YOUR FINAL WORD ON THIS BECAUSE WE NEED INPUT FROM YOU AS WE CONTINUE TO, TO DISCUSS THIS. ARE THE THOUGHTS FROM THE COMMISSION? CLEARLY WE, FROM MY STANDPOINT, WE, WE'RE STILL AWAITING THE MORE ANALYSIS BY THE SUBCOMMITTEE AND I APPRECIATE THE FACT THAT THE OTHER TWO MEMBERS OF THE SUBCOMMITTEE ARE NOT HERE. I'M FRANKLY UNABLE TO FORM AN OPINION ON THIS UNTIL I HEAR MORE DETAILS FROM THE OTHER TWO MEMBERS OF THAT SUBCOMMITTEE. CLEARLY, THERE, OUR POSSIBILITIES FOR IMPROVEMENT IN POSSIBILITIES FOR OVERSPENDING BASED ON SOME OF THE POINTS YOU MAKE. I THINK WE'RE IN THE POSITION OF NEEDING TO SEE MORE ANALYSIS OF THAT DATA. AND OPINIONS FROM COMMISSIONERS TURNER AND RAMCHARAN. AND ONCE WE SEE THAT WE'RE ABLE TO MAKE A RECOMMENDATION TO CITY COUNCIL, BUT I'M NOT READY TO, TO VOTE ON A RECOMMENDATION RIGHT NOW BECAUSE I DON'T, HAVEN'T SEEN ENOUGH DATA AND I NEED TO SEE MORE. AND I THINK THAT'S EXACTLY RIGHT. IN THE SAME BOAT. IS THAT BASED ON WHAT WE'VE SEEN, WHAT WOULD BE OUR NEXT STEPS OR WHAT IS THE, YOU KNOW, THE ANALYSIS AND THE RECOMMENDATIONS OF WHAT WE WOULD EXPECT THE COUNCIL TO DO IN ORDER TO KIND OF IMPROVE THE PROCESS, CREATE BETTER EFFICIENCIES AND TRANSPARENCY THROUGHOUT THE PROCESS. SO I DON'T KNOW IF WITHOUT THE REST OF THE SUBCOMMITTEE HERE, OR DO YOU EVEN BELIEVE YOU HAVE ENOUGH INFORMATION NOW TO CREATE KIND OF A SET OF RECOMMENDATIONS? YOU KNOW, IT'S VERY DIFFICULT TO DO THE ANALYSIS. AND IT TOOK ME FOREVER TO DO AS MUCH AS I WAS ABLE TO DO, BECAUSE I DO NOT HAVE THE SOFTWARE OR THE EVEN THE SIZE OF THE MONITOR AND ENOUGH DATA TO DO THIS. THIS IS WHY I THINK THE ANALYSIS HAS TO COME FROM THE FINANCE DEPARTMENT OR FROM THE PLANNING DEPARTMENT. I THINK IT IS BEST IF WE. I THINK THE LEAST THING WE CAN DO IS TO RECOMMEND THAT WE GET AN OUTSIDE CONSULTANT AND LET [01:05:03] HIM OR HER ASSESS THE SITUATION AND THEN MAKE SOME RECOMMENDATIONS. WE, AS A SUBCOMMITTEE OR AS A FULL COMMISSION, WE WILL NOT BE ABLE TO DO MUCH BEYOND THAT, BECAUSE IN THE SUBCOMMITTEE MEETING THAT WE JUST HAD ONE MEETING, IT'S VERY HARD TO GET TOGETHER. AND I WAS ABLE TO DO THAT MUCH. BUT THE OTHER COMMISSIONERS ARE REGRETTABLY REALLY NOT EVEN PREPARED. THIS IS NEW TERRITORY FOR THEM, TOO. I'D JUST LIKE TO ADD THAT FOR MYSELF. I'D LIKE TO UNDERSTAND THE PROCESS THAT THEY'RE CURRENTLY USING TO DEVELOP THE QUOTES AND SOLICIT THE, THE OUTSIDE YOU KNOW, QUOTATIONS. AND PERHAPS IT'S THE CITY, NOT THE CITY MANAGER, BUT THE PUBLIC WORKS MANAGEMENT THAT COULD HELP US UNDERSTAND THAT A LITTLE BIT MORE CLEARLY. BUT, BUT THAT I DON'T UNDERSTAND ENOUGH ABOUT THE STRUCTURAL PROCESS THAT THEY GO THROUGH IN A, IN A GENERIC SENSE VERSUS ANY SPECIFIC PROJECT ITSELF. I THINK THEN ONCE WE UNDERSTAND THAT, THEN WE CAN LOOK AT SOME BEST PRACTICES AND THINGS LIKE THAT. BUT I THINK UNTIL WE'VE GOT AN UNDERSTANDING ABOUT THAT, THAT BASIC STRUCTURE, I DON'T KNOW WHERE TO GO WITH AN ANALYSIS. THAT'S A FULL TIME JOB. THAT'S SOMETHING NONE OF THE COMMISSIONERS WILL BE ABLE TO DO. NO, NO UNDERSTANDING. BUT WHAT'S THE PROCESS NOW? WOULD THE PUBLIC WORKS MANAGER BE ABLE TO EXPLAIN HOW THEY GO THROUGH SPECIFICALLY AND, AND SOLICIT AN OUTSIDE BID AND UNDER WHAT CIRCUMSTANCES? BECAUSE IT SEEMS TO ME THAT IF YOU'VE GOT THIS NUMBER OF REVISIONS THAT OBVIOUSLY THAT YOU'RE NOT AS CONCERNED ABOUT THE ENGINEERING DESIGN AT THE FRONT END. IF YOU'RE SAYING THIS IS AN OPEN-END PROJECT, DON'T WORRY ABOUT IT. AS LONG AS WE'RE WITHIN 50%, WE'RE FINE. LET'S START THE PROCESS. AND THEN AS THE PROCESS, PARDON ME, THE PROJECT PROCEEDS. YOU KNOW, IT CAN BE FINE-TUNED. I DON'T KNOW, MAYBE THAT'S THE OBJECTIVE. YOU KNOW, THOSE OF US THAT HAVE WORKED IN THE PRIVATE SECTOR, THAT'S NOT HOW WE OPERATE. I UNDERSTAND THAT, BUT PERHAPS THAT'S AN EFFECTIVE WAY THAT THAT THE CITY WORKS. BUT AS I SAY, TO HEAR IT FROM THE, THE FOLKS THAT ARE ACTUALLY GOING OUT AND SOLICITING THE BIDS AND THEN HAVING TO COME BACK FOR ADDITIONAL MONEY FROM THE CITY COUNCIL, I THINK WOULD BE VALUABLE FOR ME. AND EVEN IF THE RECOMMENDATION IS TO HIRE A CONSULTANT, I THINK IT'S EVEN COMING UP WITH THE. THAT WOULD BE MY RECOMMENDATION. BUT THE IDEA IS THAT WE'RE NOT GOING TO GET MUCH FROM THE SUBCOMMITTEE, I'M AFRAID. SO MAYBE MORE DIRECTION ON WHAT YOU THINK THE CONSULTANT SHOULD DO, LIKE REVIEWING PROCESSES, BEST PRACTICES, POSTMORTEMS, TRANSPARENCY, SOFTWARE. TO WORK WITH THE CONSULTANT, IF AND WHEN WE HIRE ONE. I COULD DO THAT. AND THEN WE CAN PUT OUR HEADS TOGETHER AND. GIVING DIRECTION TO THE COUNCIL CONSULTANT SHOULD BE DOING, OR WHAT YOU THINK IS. ESPECIALLY IN VIEW OF THE $93 MILLION PROJECT THAT WE HAVE. I THINK IT'S IMPERATIVE THAT WE REALLY GO INTO SOME DETAILS ON HOW TO MANAGE IT EFFECTIVELY. AND I THINK MY UNDERSTANDING OF THAT IS THAT THEY HAVE ACTUALLY HIRED A CONSULTANT TO ACTUALLY PUT THAT TOGETHER. SO PERHAPS WE COULD HAVE NO IDEA. GET ACCESS TO THE INITIAL PLAN. STEPHANIE. WE DON'T KNOW WHAT'S GOING ON WITH THAT PROJECT. STEPHANIE, YOU WERE WE HAD SOME DISCUSSION ABOUT THE PLANNING FOR THAT PROJECT. CAN YOU ADD ANYTHING TO THIS DISCUSSION SPECIFICALLY ON FIRE AND POLICE AND WHAT WE'RE DOING THERE? YES. SO WE HAVE GONE THROUGH A NUMBER OF MILESTONES ON THIS PROJECT WITH DETAILED REPORTS TO COUNCIL AT EVERY, AT EVERY STEP. THE MOST RECENT ITEM IS THAT THE CITY ISSUED RFP FOR SPECIFIC PIECES OF THE PROJECT. THOSE ARE NOW GOING OUT TO BID. WE ALSO PRESENTED A FAIRLY DETAILED PROJECT PLAN TO THE CITY COUNCIL. I BELIEVE I HAVE A WHOLE LIST OF MEETINGS HERE. BUT I BELIEVE LAST MONTH OR THE MONTH BEFORE. SO AGAIN, WE HAVE AN OWNER'S REPRESENTATIVE, WHICH IS A PROFESSIONAL FIRM THAT MANAGES THESE VERY LARGE PROJECTS TO HELP THE CITY KIND OF PLAN AND SEQUENCE EVERYTHING BECAUSE AGAIN, THIS IS NOT, CITY STAFF DOESN'T MANAGE PROJECTS THIS SIZE EVERY YEAR, [01:10:06] SO WE, WITH COUNCIL APPROVAL, HIRED SOMEONE TO BE KIND OF THE MANAGER ON THE CITY'S BEHALF. SO WE ARE AT THAT PLANNING STAGE NOW. WE ALSO HAD AN INITIAL MEETING WITH OUR FINANCIAL ADVISOR AND WITH OUR BOND AND DISCLOSURE COUNCIL TO GIVE THEM AN UPDATE ABOUT OUR SCHEDULING GENERALLY, WHICH WOULD LEAD INTO THEN SEQUENCING FOR THE ACTUAL BOND ISSUANCE. SO THERE IS A LOT OF VERY DETAILED INFORMATION THAT HAS GONE TO COUNCIL. THIS IS AVAILABLE. WHAT I HAVE FOR YOU THIS WEEK THAT I DISCUSSED WITH CHAIR WOODHAM IS A LIST OF EACH OF THESE AGENDA ITEMS THAT HAS GONE TO COUNCIL STARTING FROM THE VERY FIRST PLANNING STAGES. I THINK THE PLANNING STAGES WOULD BE INFORMATIVE GIVEN THE DISCUSSION TONIGHT, BECAUSE THEY GO IN DETAIL THROUGH THE ANALYSIS THAT SUPPORTED THE BOND AMOUNT THAT WE PUT OUT THERE. WE DID HIRE A PROFESSIONAL CONSULTANT TO LOOK AT VARIOUS OPTIONS. GIVEN THE TYPE OF REBUILDING THE CITY WANTED TO DO, AND IN THE END IT WAS COUNCIL LOOKING AT THESE ESTIMATES, WHICH AGAIN, WERE PUT TOGETHER BY A REPUTABLE FIRM AND KIND OF UNDERSTANDING THE SCOPE OF WHAT THE CITY WANTED TO DO AND THE AMOUNT THAT MADE MOST SENSE. SO AGAIN I WILL SHARE THIS WITH. I'LL SHARE THIS WITH THE COMMISSION. AND THEN I'VE TALKED TO KIND OF THE REST OF OUR PLANNING TEAM ABOUT WHEN IT MIGHT MAKE SENSE TO COME AND GIVE AN UPDATE TO THIS COMMISSION. THIS MIGHT MAKE SENSE MORE CLOSER TO THE BOND ISSUANCE SINCE YOU KNOW, AS YOU'RE THE BUDGET AND FINANCE COMMISSION, I THINK THE, THE BOND ISSUANCE PIECE IS PROBABLY MOST DIRECTLY RELEVANT. BUT THAT'S, THAT'S AN ITEM THAT WE'LL LOOK AT FOR THE FUTURE. I SUPPOSE ONE OF THE THINGS THAT SEEMS OUT OF SEQUENCE IN THIS PROCESS, AND MAYBE THAT'S WHAT'S CAUSING SOME OF THE QUESTION IS, IN A PERFECT WORLD, WE WOULD HAVE THIS DETAILED ANALYSIS TO SHOW WHAT THE COST WOULD BE FOR THE PROJECT THAT WE NEED. AND WE HURRIED THAT PROCESS UP AND I, I DON'T KNOW SOME DETAILS ON THAT WOULD BE HELPFUL, BUT NORMALLY YOU WOULD, YOU WOULD DEVELOP THE COST, THE PLAN FOR THE PROJECT AND THE COST AND THEN GET THE AUTHORITY OR THE AUTHORIZATION TO ISSUE BONDS. WE, WE GOT ISSUE AUTHORIZATION TO ISSUE THE BONDS AFTER NOT ALL, OBVIOUSLY NOT ALL THE WORK HAD BEEN DONE ON PLANNING THE PROJECT. SO THAT SEEMS OUT OF OUT OF SEQUENCE A LITTLE. SO I GUESS WHAT THE REASONING BEHIND THAT, I MEAN, ONE, THERE ARE TWO THINGS WE DID WANT TO ISSUE THE BOND WITHIN A CERTAIN TIME FRAME TO COINCIDE WITH WHEN THE SCHOOL DISTRICT WAS ISSUING A BOND THAT WAS CONSIDERED GOOD TIMING FOR THE CITY. BUT IN TERMS OF DEVELOPING AN ANALYSIS, I MEAN, AS I JUST MENTIONED, WE DID HIRE A FIRM TO DO AN ANALYSIS, WHICH IS WHAT UNDERPINS THE NUMBERS. THE DIFFERENCE BETWEEN WHAT WE DID UPFRONT AND WHAT WE DO AFTER THE FACT REALLY DEPENDS ON THE LEVEL OF DETAIL. AND TO SPEND, YOU KNOW, SIX MONTHS AND HUNDREDS OF THOUSANDS OF DOLLARS DEVELOPING SPECIFIC PLANS FOR MONEY THE CITY MAY NOT GET. DOESN'T MAKE SENSE FROM A FINANCIAL PERSPECTIVE. I'LL ALSO SAY THAT, YOU KNOW, WE HAD A FINANCIAL ADVISOR AND OTHER LEGAL COUNSEL INVOLVED IN PREPARING THE PREPARING THE BOND MEASURE. THEY WERE YOU KNOW, NO ONE HAS EXPRESSED ANY CONCERNS ABOUT THE LEVEL OF DETAIL SUPPORTING THE CITY'S BOND ISSUANCE INCLUDING OUR FINANCIAL ADVISOR. SO I UNDERSTAND THE, THE SEQUENCING. I THINK THE REASON FOR THAT IS REALLY TO GET THE KIND OF DETAIL WE'RE GETTING TO NOW. IT'S A MORE INVOLVED AND MORE EXPENSIVE PROCESS THAN YOU MAY WANT TO ENGAGE IN BEFORE YOU HAVE THE MONEY. YEAH, IT'S A VALID POINT. WE HAD TO GET APPROVAL. THIS IS A PUBLIC TAX-EXEMPT BOND ISSUE, AND WE HAD TO GET APPROVAL FOR THE TAXES TO PAY FOR IT BEFORE WE COULD GO FORWARD. AND WE DIDN'T HAVE TIME TO DO ALL THE PLANNING THAT ONE WOULD WANT, THINK YOU SHOULD DO BECAUSE OF THAT. SO IT WAS A POSITION TO A CERTAIN EXTENT. WE WERE FORCED INTO THAT POSITION BECAUSE OF THE VOTE FOR THE BOND ISSUE. GOOD OR BAD, THAT'S WHAT HAPPENED. OKAY, STEPHANIE, AS FAR AS THE INFORMATION ON THAT PLANNING, PRIOR PLANNING. WHEN CAN WE, CAN, WHEN CAN WE SEE SOMETHING PART OF THAT? THAT WOULD BE HELPFUL, I THINK, IN THIS DISCUSSION. I WILL SEND THAT TO YOU RIGHT NOW DIRECTLY AFTER THIS MEETING. [01:15:01] OKAY. SO YOU WILL HAVE TO OPEN, YOU KNOW, VARIOUS LINKS TO LOOK AT THE REPORTS. BUT WE HAVE THE TITLES OF THE REPORTS. IT'S PRETTY CLEAR WHAT EACH ONE OF THEM IS. AND I THINK ESPECIALLY IF YOU'RE THINKING ABOUT KIND OF THE PLANNING PROCESS AND HOW DID WE GET THERE? I THINK THE FIRST TWO ARE PROBABLY THE MOST RELEVANT. AND THEY INCLUDE THE ANALYSIS THAT WE SHARED. AND COUNCIL'S DISCUSSION ON THAT MAY ALSO BE INSTRUCTIVE AS WELL. WITH THE VIDEOS, BUT MAYBE WHAT I CAN DO IN ADDITION TO PROVIDING ALL THE LINKS IS CREATE JUST A VERY HIGH LEVEL TIMELINE OF THE MILESTONES IN THE PROJECT SO FAR. AND I CAN SEND THAT TO THE COMMISSION. DO YOU, DOES THE COMMISSION FEEL LIKE I DO THAT WOULD BE HELPFUL TO SEE THIS? YES, I DO. OKAY. BECAUSE IT WOULD. IT WOULD HELP TO. THE BIG ISSUE HERE IS, IS THE OVERALL PLANNING FOR CAPITAL IMPROVEMENT PROJECTS AND THE SUPPOSITION OR THE FEAR THAT BECAUSE A LOT OF THIS WORK IS BEING DONE WITH THE WORK ORDERS THAT THAT WERE SOMEHOW SPENDING MORE MONEY THAN WE NEED TO, BECAUSE AGAIN, THE IDEA IS MAYBE WE SHOULD BE DOING RFPS IN THE MIDDLE OF SOME OF THESE PROJECTS. THAT'S COUNTERED BY THE KNOWLEDGE THAT EACH OF THOSE EXTENSIONS IS AT THE SAME PRICE AS THE FIRST PIECE. AND THE PROJECTS THAT ARE CONTINUED ARE AT THE LOWEST PRICE WE WERE ABLE TO GET WHEN WE DID GO TO BED. AND SO WE'RE NOT PAYING MORE FOR THE, WE'RE NOT KNOWINGLY PAYING MORE FOR PROJECTS. AND THE FEAR IS THE GUESS IS PERHAPS THAT IF WE WENT OUT TO BID AGAIN, WE COULD GET LOWER BIDS. THAT'S COUNTERED A LITTLE BIT BY THE KNOWLEDGE THAT LABOR COSTS ARE CONTINUALLY GOING UP. MATERIAL COSTS ARE CONTINUALLY GOING UP. I DON'T THINK WE'VE SEEN A PERIOD OF TIME IN THE LAST TEN YEARS WHEN THEY'VE GONE DOWN. SO, THE REALITY IS WE HAVEN'T PROVEN THE REALITY THAT WE'RE WASTING MONEY. WE'RE SAYING THERE'S A POSSIBILITY AND WE NEED TO TO COME TO GRIPS WITH THAT POSSIBILITY. AND SOMEHOW EITHER, WELL, THAT'S THE POSSIBILITY. SO I THINK WE GET THE INFORMATION FROM FINANCE ON THE PLANNING FOR THE FIRE AND POLICE ISSUE AND BRING THIS UP AGAIN AT THE NEXT MEETING. CARRY THIS OVER AGAIN. DOES THAT MAKE SENSE? SO DO WE NEED A MOTION TO RECEIVE AND FILE WHAT WE'VE DONE SO FAR? OR JUST A MOTION TO CONTINUE TO THE NEXT MEETING? YEAH, JUST TO CONTINUE TO THE NEXT MEETING. BUT. BUT FIRST PUBLIC COMMENT. THERE'S NO ONE ON ZOOM AND THERE'S NO ECOMMENTS. SO. OKAY. I'M SORRY, ARE THERE PUBLIC COMMENTS? NO THERE'S NOT. THERE ARE NO PUBLIC COMMENTS. DO YOU HAVE A MOTION TO CONTINUE THIS TO THE NEXT MEETING? MOTION TO CONTINUE TO NEXT MONTH. ALL IN FAVOR? AYE. OKAY. DONE. ITEM J.3. DISCUSSION AND POSSIBLE ACTION REGARDING INPUT AND SUGGESTIONS FOR THE CITY COUNCIL'S CONSIDERATION DURING THE UPCOMING STRATEGIC PLANNING SESSION. I WANT YOU TO EXPLAIN WHAT THAT STRATEGIC PLANNING SESSION IS, AND WHAT WE MIGHT BE ABLE TO PROVIDE FOR IT, OR I GUESS WE COULD ATTEND IT. YEAH, GO AHEAD. YES, SO THE CITY COUNCIL HOLDS STRATEGIC PLANNING SESSIONS ANNUALLY. USUALLY WHAT THEY'LL DO IS THEY TAKE THE PRIOR YEAR STRATEGIC PLAN. THEY WILL TAKE A LOOK AT THE, THE KIND OF OVERALL GOALS AND OBJECTIVES AND TALK THROUGH ADD, CHANGE, DELETE AND PRIORITIZE. AND THIS IS REALLY A TIME FOR COUNCIL TO SET THEIR PRIORITIES AND THEIR WORK PLANS FOR THE YEAR. CITY STAFF ALL ATTEND. WE, YOU KNOW, DO SOME WORK IN ADVANCE WITH THE CITY MANAGER AND KIND OF THINK ABOUT, YOU KNOW, IF THERE'S ANY WAY THAT WE CAN SUPPORT COUNCIL AND, AND MAKING THESE DECISIONS, BUT IT IS A GREAT OPPORTUNITY TO HEAR OR, YOU KNOW, TO HEAR FROM COUNCIL WHAT THEIR PRIORITIES ARE GOING INTO THE NEXT YEAR. THESE OBVIOUSLY COULD FEED INTO FUNDING DECISIONS AND THE BUDGET BECAUSE AGAIN, THEY REFLECT COUNCIL PRIORITIES. THE ROLE FOR THIS COMMISSION AS CHAIR WOODHAM SAID, YOU ARE OF COURSE FREE TO ATTEND EITHER AS, OR WELCOME TO ATTEND EITHER ON YOUR OWN BEHALF OR AS THE COMMISSION. YOU CAN ALSO WRITE A LETTER TOGETHER AS A COMMISSION THAT YOU WOULD LIKE TO SEND TO THE CITY COUNCIL IN ADVANCE OF THEIR STRATEGIC [01:20:01] PLANNING SESSION. IF YOU WANTED TO DO THAT YOU WOULD PROBABLY WANT TO DESIGNATE A SUBCOMMITTEE TO WORK ON IT OR 1 OR 2 TO WORK ON IT, KIND OF WITH THE GENERAL IDEAS OF THE COMMITTEE. AND THEN THE COUNCIL WOULD RECEIVE THAT LETTER IN ADVANCE OF THE STRATEGIC PLANNING SESSION AND WOULD DISCUSS IT DURING THE SESSION. SO YES, THIS IS SCHEDULED FOR MARCH 31ST AT 2 P.M.. THERE WILL NOT BE A COUNCIL MEETING THAT DAY, AT LEAST NOT SO FAR. SO AND I WILL MEET OVER. USUALLY IT'S IN THE LIBRARY. AND YEP, YOU'RE DEFINITELY WELCOME YOUR INPUT. THE MEETING IS HERE IN COUNCIL CHAMBERS. IT'S IN THE, USUALLY IT'S IN THE LIBRARY, THE MAIN LIBRARY IN THE BIG CONFERENCE ROOM. BUT WE CAN WE CAN SEND YOU THIS INFORMATION IN AN EMAIL AS WELL. WOULD YOU BE ABLE TO SEND THIS REPORT? OH, YES. AND ACTUALLY, JACOB, IF YOU CAN SWITCH TO MY SCREEN, WHAT WE ATTACH TO IT IS THE CURRENT VERSION OF THE STRATEGIC PLAN. SO IT'S A BIT LENGTHY, BUT IT'S ORGANIZED IN PRIORITY AREAS. THEN GOALS AND THEN SPECIFIC OBJECTIVES. STAFF REPORTS ON THESE THROUGHOUT THE YEAR. AND THEN AGAIN AS PART OF THE REVIEW COUNCIL WILL SEE, YOU KNOW, IS THIS COMPLETE? IS IT SOMETHING WE WANT TO CONTINUE OR EXPAND ON? SO YEAH, I GUESS COULD YOU SEND THIS OR IS THIS OR IS IT POSTED ONLINE OR. THIS WAS INCLUDED AS AN ATTACHMENT TO THE. OKAY, SO IT'S ALREADY TO THE AGENDA PACKET. SO THERE WAS JUST A REPORT. AND THIS IS AN ATTACHMENT. PERFECT. I CAN JUST SCROLL THROUGH THESE QUICKLY. SO WE HAVE ECONOMIC VITALITY. A COUPLE OF GOALS UNDER THIS AREA. ECONOMIC DEVELOPMENT. PUBLIC SAFETY AND COMMUNITY WELL-BEING. YOU SEE OUR MEASURE FP ON HERE. SO ACTUALLY YOU CAN SEE SOME OF OUR UPDATES RELATED TO MEASURE FP SORT OF BEEN INSTRUCTIVE TO PULL UP A MINUTE AGO. WE HAVE A GOAL RELATED TO MENTAL HEALTH RESPONSE. OUR HOMELESSNESS AND TECHNOLOGY. PUBLIC FACILITIES. AND THIS IS LIKE OUR PARKS AND PUBLIC SPACES. TRANSIT. WE HAVE SO CUSTOMER SERVICE DELIVERY, THESE ARE A LOT OF OUR IT. DATA RELATED GOALS. OUR NEIGHBORHOODS AND ENVIRONMENTAL SUSTAINABILITY. SO AGAIN THE DISCUSSION WILL CENTER AROUND THE STRATEGIC PLAN AS CREATED. BUT YOU KNOW, IF YOU HAVE IDEAS OUTSIDE OF THIS OR OTHER CONSIDERATIONS, YOU KNOW, FOR EXAMPLE, THIS COMMISSION HAS TALKED ABOUT BUILDING THE CITY'S RESERVES. THAT'S SOMETHING EVEN THOUGH IT'S NOT REALLY ON HERE, YOU COULD SAY THAT, YOU KNOW, THE BUDGET AND FINANCE COMMISSION RECOMMENDS THAT THIS IS A GOAL THE CITY PURSUES RELATED TO FINANCIAL SUSTAINABILITY. LOOKS MORE LIKE AN ACTION PLAN, NOT A STRATEGIC PLAN. SO THE ACTION FOR THE COMMISSION TONIGHT, WE WANTED TO SHARE THIS INFORMATION WITH YOU. MAKE SURE YOU'RE AWARE. AND I THINK YOUR ACTION WOULD BE TO DISCUSS WHETHER YOU WANT TO WRITE A LETTER TO SEND FORMALLY OR WHETHER YOU WANT TO. WELL, I GUESS YOU COULD DECIDE INDIVIDUALLY IF YOU WOULD LIKE TO ATTEND AND PARTICIPATE ON THE DAY AS WELL. MY SUGGESTION IS THAT WE GO INDIVIDUALLY IF TIME ALLOWS AND TAKE PART IN THE DISCUSSION IF AND WHEN THE OPPORTUNITY PRESENTS ITSELF. I DON'T REALLY SEE THE BENEFIT OF TRYING TO DO A LETTER AT THIS POINT. I MEAN, THE LETTER IS GOING TO SAY WE BELIEVE IN STRONG FINANCIAL MANAGEMENT, WATCH EXPENSES, GENERATE REVENUE AND MAKE THE CITY A BETTER PLACE TO LIVE. SO THAT'S FOUR SENTENCES. THAT'S WHAT I WOULD PUT IN THE LETTER. IF THE COMMISSION FEELS DIFFERENTLY, WE CAN TALK ABOUT DRAFTING A LETTER AND SENDING IT. IF WE HAVE PRIORITIES THAT WE THINK THEY'RE NOT AWARE OF. BEST PRACTICES, I THINK ONE THING WE NEED TO LOOK AT IS WHAT ARE THE BEST PRACTICES THAT OTHER CITIES ARE FOLLOWING? AND WHATEVER WE CAN LEARN FROM SOME OF THESE BEST PRACTICES TO IMPROVE OVERALL PERFORMANCE. THAT'S WHAT MAKES US ONE OF THE BEST MANAGED CITIES, JUST LIKE FORT WAYNE IS. YEAH. I WAS TRYING TO LOOK FOR GOALS THAT HAVE SOME KIND OF OPERATIONS COMPONENT. I THINK THIS IT CATEGORY IS PROBABLY GETTING THE CLOSEST TO SOME OF THE THINGS THAT COMMISSIONER YASU WAS JUST MENTIONING. [01:25:10] BUT I AGREE WITH YOU. I DON'T THINK WE'RE IN A POSITION TO NECESSARILY WRITE A DETAILED LETTER IN TERMS OF RECOMMENDATIONS OR THINGS TO ADD THAT MAYBE IT'S JUST MORE AS AN INDIVIDUAL, IF WE IF WE CAN JOIN. I'M SORRY, SAY THAT AGAIN. I DON'T THINK WE'RE, OR AT LEAST I'M NOT IN A POSITION. I HAVEN'T READ THIS ENOUGH OR IN A POSITION TO WRITE A DETAILED LETTER WITH ANY RECOMMENDATIONS AND THAT IF ANY OF US FEEL DIFFERENTLY, I THINK GOING IS AN INDIVIDUAL TO THESE MEETINGS WOULD BE BENEFICIAL. SO THIS SESSION GOES USUALLY ALL AFTERNOON INTO THE EVENING OR WHAT'S THE TIME FRAME USUALLY? 3 TO 5 HOURS, I THINK WE'RE TRYING TO KEEP IT A LITTLE BIT SHORTER ON THE SHORTER END OF THAT THIS YEAR. ABOUT THREE HOURS. DO THEY PROVIDE COFFEE? AND THERE IS COFFEE AND THERE'S USUALLY ACTUALLY A BREAK WITH FOOD. OKAY. NO, NO, NO, NO, NO. HIGH POINT. BUT YEAH, AND THEY DO YOU KNOW, IT'S A PUBLIC MEETING. THEY HAVE PUBLIC COMMENT AT THE START OF IT AS WELL. SO BUT ANY, ANYONE IS WELCOME TO ATTEND AND. OKAY, ADDRESS LIKE THREE TIMES, BUT COULD YOU SAY IT ONE MORE TIME? MARCH 31ST, WHICH IS A TUESDAY AT 2 P.M.. OKAY, GOOD. OKAY, ON TO ITEM K. COMMISSION MEMBER ITEMS AND FUTURE COMMISSION AGENDA TOPICS. [K. COMMISSION MEMBER ITEMS AND FUTURE COMMISSION AGENDA TOPICS] NICK? NOTHING TO ADD. VIJAY? DAMIEN? NOTHING. OKAY. I WOULD ENTERTAIN A MOTION TO ADJOURN. YOU KNOW WHAT? I'M SORRY. THIS IS MY, I WAS GOING TO SAY IT'S MY FAVORITE PART OF THE NIGHT, IT'S NOT. THAT'S THE PRESENTATION'S. I JUST WANTED TO MAKE SURE BEFORE WE LEAVE. DID YOU HAVE SPECIFIC RECOMMENDATIONS ON THE MID-YEAR REPORT? WOULD YOU LIKE TO MAKE ANY SPECIFIC RECOMMENDATIONS OTHER THAN, YOU KNOW, STAFF'S RECOMMENDATION, WHICH IS TO MAKE THESE KIND OF REQUIRED CHANGES? OR NOT REQUIRED, BUT, YOU KNOW, OUR REVENUE AND EXPENDITURE ADJUSTMENTS ARE FAIRLY REQUIRED. BUT IF YOU HAVE ADDITIONAL COMMENTS, WE'D LOVE TO INCLUDE THOSE. I DON'T HAVE MUCH, BUT AGAIN, THE THING THAT GOES WITHOUT SAYING IS AS THE COMMISSION WE'RE TRYING TO ENCOURAGE CONTINUED SOUND FINANCIAL MANAGEMENT, SO THAT THE COMMENTS THAT I WOULD MAKE IN A LETTER TO ACCOMPANYING THAT SIMPLY MIRROR THAT THAT FEELING. SO I WOULD, THE LETTER SORT OF IS SORT OF SUPERFLUOUS, I GUESS. ONE QUESTION, I GUESS ON THE DECISION PACKAGES WAS LIKE $1 MILLION. A LOT OF THEM WERE COVERED BY GRANTS OR OTHER MEASURES. SO IS THERE ANYTHING DISCRETIONARY THAT MAYBE WE WANT TO REVISIT OR POSTPONE. THE ONLY REALLY DISCRETIONARY ITEM WE PUT IN THERE ARE PURCHASES FROM THE VEHICLE REPLACEMENT FUND, WHICH IS ONE OF OUR INTERNAL SERVICE FUNDS. AND I MEAN, ALTHOUGH WE HAVE SOME CONTRIBUTIONS TO THAT, THE FUND BALANCE IS ACTUALLY PRETTY HEALTHY. AND THESE THE TWO ITEMS ARE FAIRLY OPERATIONALLY IMPORTANT. ONE WERE ADVANCED, YEAH. SO ALL OF THE GENERAL FUND ITEMS ARE FULLY OFFSET BY REVENUE. GOT IT. NOT IN THE FORM OF COMMENTS THAT WOULD ACCOMPANY THAT, BUT AS A QUESTION, THIS BRINGS UP SOMETHING I'VE BEEN THINKING OF FOR SOME TIME. WHEN YOU'RE DOING, WHEN YOU'RE PREPARING FOR THE BUDGET FOR NEXT YEAR, ARE YOU ALREADY PUTTING DATA TOGETHER BASED ON WHAT'S HAPPENING THIS YEAR? SO THAT. TRENDS IN TOT AND THE THINGS THAT YOU'RE SEEING. YEAH, SO OUR STARTING POINT IS REALLY GOING TO BE THE, THE FINAL CHANGES TO THIS MID-YEAR REVIEW. AND THEN ONE OF THE FIRST THINGS WE DO IS I WAS MENTIONING IS WE KIND OF STRIP OUR EXPENDITURE BUDGET DOWN TO OUR CORE NEEDS. SO WE LOOK AT, AGAIN, WHAT IT'S GOING TO COST TO KEEP ALL OF OUR PERSONNEL AT THE SAME RATE. WHAT DO WE NEED TO KEEP THE LIGHTS ON? AND THEN WE LOOK AT WHAT WE CAN ANTICIPATE FROM OUR CORE REVENUE SOURCES, INCLUDING, AS YOU JUST MENTIONED, SOME OF THE RECENT TRENDS WE'RE SEEING. WE TALKED TO OUR CONSULTANTS, VARIOUS OTHER EXPERTS, AND THEN WE SEE WHERE THAT CORE GETS US. YEAH. AND, YOU KNOW, OUR BUDGET IS REQUIRED TO BE BALANCED BY CITY CHARTER. YEAH, AND OUR ALL OF OUR ACTIVITY IS DRIVEN BY THAT REVENUE BUDGET. AND BECAUSE WE BEING A GROWING CITY AND AN IMPROVING QUALITY OF LIFE, WE TEND TO SPEND EVERYTHING WE HAVE. SO HAVING THAT REVENUE BUDGET IN PLACE EARLY ON OR THAT FORECAST IN PLACE EARLY ON SORT OF FRAMES WHAT YOU'RE ABLE TO DO EXPENSE WISE. YEAH. AND WE DO HAVE SOME 26-27 PROJECTIONS FROM THE EXPERT CONSULTANTS WE WORK WITH FOR OUR MAJOR TAX SOURCES ALREADY AT THIS [01:30:09] POINT. AND AGAIN FROM NOW, IT'S JUST, YOU KNOW, WE KIND OF LOOK AT THE ANALYSIS FOR THIS YEAR AND SEE WHAT LOOKS REASONABLE FOR 26-27. JUST LIKE TO ADD, I'D LIKE TO CAUTION THAT THE SECOND HALF OF THIS BUDGET ON THE REVENUE SIDE FOR THOSE ITEMS THAT ARE DEPENDENT ON TOT, SALES TAX, THOSE TYPES OF ITEMS. I WOULD NOT USE THE FIRST SIX MONTHS OF THIS BUDGET AS AN ASSUMPTION THAT THE SECOND SIX MONTHS ARE GOING TO PROVIDE THE SAME LEVEL OF REVENUES, THAT'S. YES, NO, THAT'S AN EXCELLENT POINT. I MEAN, AGAIN, WHEN WE'RE MAKING THESE ESTIMATES, WE TRY TO MAKE IT ACCURATE. OR, YOU KNOW, TO THE BEST OF OUR ABILITY. SO, WE DON'T KNOW THINGS ARE GOING TO GET SIGNIFICANTLY WORSE. WE DON'T HAVE STRONG INDICATIONS THAT THAT WILL HAPPEN, BUT WE'RE NOT GOING TO YOU KNOW, WE'RE GOING TO MAKE REASONABLE ASSUMPTIONS FOR THE TRENDS THAT WE'RE CURRENTLY SEEING. YEAH, IT'S A GOOD POINT. REVENUE COULD WELL BE TRENDING DOWNWARD AND EXPENSES, ANYTHING RELATED TO PETROCHEMICALS IS GOING TO BE MORE EXPENSIVE, SO. SO AND AGAIN WE PLAN TO CONTINUE. YOU KNOW, EVERY PAYROLL CYCLE WE'RE LOOKING AT, YOU KNOW, TO MAKE TO MAKE SURE WE'RE ON TRACK. WE'RE MONITORING OUR KIND OF MAJOR CONTRACTS AND PROFESSIONAL SERVICES SPENDING. I THINK WE'RE VERY AWARE THAT WHAT YOU'RE SAYING IS TRUE. THE SECOND HALF, WE'RE ALREADY DOING PROJECTING SOME REDUCTIONS, BUT IT MAY BE WORSE THAN THAT. SO YOU KNOW, THAT'S ANOTHER REASON WHY WE DON'T, WE'RE NOT PROJECTING ANY OTHER SAVINGS OTHER THAN PERSONNEL, WHICH AGAIN, IS FAIRLY, FAIRLY EASY TO PREDICT. BECAUSE WE DON'T WANT TO, YOU KNOW, DON'T WANT TO ANTICIPATE THINGS THAT WILL NOT MATERIALIZE. VERY GOOD. OKAY, GOOD. CAN I HAVE A MOTION TO ADJOURN? MOTION TO ADJOURN. ALL IN FAVOR? AYE. AYE. THANK YOU VERY MUCH. * This transcript was compiled from uncorrected Closed Captioning.