te wants to either restrict or stop our ability to As barely as the housing is that how they're yes as a way to lower the cost of housing. So that's that's a current We'll see where the legislation goes But that's a current new a new thing that we're tracking on because impact fees are a critical source for us to fund capital Councilor Brown So on slide five and the slide four, I believe you repeat just to make sure we get it Unreasonably low reserve levels at 10 of general fund reserve available Could and can you just remind us what reasonable reserve would be and we'll we'll come back to the reserves a little bit later on this presentation But bottom line is we we set as a minimum floor to a two month reserve a couple years ago So a 16.7 percent that's a minimum our recommendation The the data showed us that we should be looking at a 24 to 28 percent range for our city of our size of our complexity so we don't we're not quite at the recommended level and then we modified a reserve portfolio to take advantage of some Paydown perrs. So we've actually reduced our general fund reserve from 16 to down to 10 percent So we can use that that extra money to pay down some higher rate credit card debt essentially I don't know if there's a longer short answer. Hopefully short Why is CalPERS not investing the way You might want them to Stick short. I can talk on this for a long time. They've made political and staff I'm filtering I don't like They've made choices that they look bad when they lost so much money So they don't want to look bad again, but they made that choice during a recovery period They've also made choices political choices as they have always done to let's not invest in these funds with these things That's always happened But I think they've gotten ultra conservative because they're human beings and they don't want to look bad again And so they don't want to put their fund at risk by doing so they've picked a wrong time to do that Coming out of the worst recession period is the wrong time to be ultra conservative Maybe not ultra conservative, but clearly too conservative Who's on that board? Is there it's a board that makes that decision? Yeah. Yeah, they're appointed by the governor No, they're independently elected through the CalPERS system. Okay. Yeah And our new stuff So there's five big topics we want to review today, and I'm just going to jump on in instead keep babbling So there's a lot of financial reports some you see some some you don't but there's a lot of reports that we do Is a city some departments do reports. We do a lot of reports in the finance department So I wanted at least reference a few reports and jump into a deeper dive on a few Certainly you've seen and we've talked about the city's annual budget a lot But we want to orientate you a little bit about how the document's constructed and what's in there and what's important What we don't talk often a lot is about our audit and financial statements our comprehensive annual financial report our CAFR I Can remember the 90s and a little bit of the 2000s when we present these reports regularly to councils and we'd be able to spend time Breaking them down in 2004 the reports were restructured in a way that made them more user friendly to banks and bond holders and bond rating companies and less user friendly for Community members and council members and we've since seen seen more changes in that document that unfortunately It's it's a harder document to get to and to translate Meaning it's a 215 page 215 page document audited by an independent firm To its validity and you have to get to page 51 to Start seeing something to make sense And then you go about another hundred pages and get to about 167 and you see some more things that make sense And then in in the beginning in the middle. There's a lot of stuff. That's really really really Accounting ease you really have to understand the dynamics of they have to back this out and take out this number It just doesn't make sense So it's a report that we we struggle with a way of how we can communicate that But we build it into our budget. We build in some of that data into our budget as far as Projected fund balances our cash flow statements. So we build that into our models But it's a harder report that we can you know, it's not as easy. It used to be to digest Happy to spend time on it whenever you want really happy to Just ask But but I want to let you know it's a document we have out there It's on our website and every now and then because customer customer client community member does call You know generally they have some making background and they ask questions about it But it's a report that's there, but it's it's really tough to digest it opens with mandated management discussion analysis But it takes things like blending your waterfront and mixing that with the journal fund and then talking about the aggregate And none of that makes sense because you can't talk about a journal fund and the waterfront in the same paragraph Because you have to break them apart to make to make it make sense. So it's a really hard report to digest I'm going to pull back a little bit because I sound like i'm bashing my own profession But I just want to point out why we don't talk about it a lot because it's just it's a very difficult tool But we do build a lot of that data into our budget We do spend a lot of time doing our major presentations this year doing even more so and we do a lot of budget presentations Around the budget time. So there's other information that we present during the year And then there's some other reports one that we'll talk a little bit about an investment report that you see on a monthly basis You see a grants report that comes to you on a pergola regular basis on an update on grants that we're looking at There's a state State controls report required by our state of california. There's numerous different versions of those reports that we do Aggregate on the city down to road projects down to some other Places and then we do we have reports that we work with bond radio agencies These are some of the headline reports that from time to time We'll talk to you about but just want to call attention to these headliners There's a lot more below the details and we'd be happy to drill down into any of them But we thought we just do or no orientation to our budget So the last year's budget are awarded by the national association of finance officers association very high High accreditation received its award for 2018. So we're proud about that But some of the things you'll find in the report that you want to pay attention to our budget in brief It's a newer addition we brought in a couple years ago to try to keep that to two pages The information changes, but it's meant to be the two pages that you would need to have or want to have On different data points So if there's something you're curious about or you think we should have in the budget Let us know and we'll get that on that page because it's meant to be the two pages If you carry around with you then you then you have that There's also the two messages the city manager's message and the finance director's message Both with different themes the city manager's message provides a strategic level overview What's happening now at the high level and what's coming the years ahead and the finance director is typically more Numbers based what's going on the deficit what's going on the budget document So there's kind of those three reports that are good to make sure you're aware of and looking at Within the budget there's a highlight of every department in the city Tracy, do you remember which department we're looking at? It's finance. Yeah finance. Sorry This these are examples of what's in there and I don't mean to drill We're not going to drill down. I mean, we're not going to ask you to read that But within the document you get you get information about their goals their accomplishments You get the numbers about their what their allocations are you see pictures generally of who's in the departments you get Get a sense of who they are Pulling up a little bit higher examples of what's in the budget Schedule for each department you'll get three years of data. They're prior year actuals The current year adopted amended an estimated actual budget and then next year's proposed budget You'll be seeing this in in april. You'll see the more version recent version of this Within the schedule you'll see the highlight of the total operations of each department by its major classifications personnel and capital and in operating costs And then you can also see what its net general fund cost is to the city So in this case the finance department, although our total department cost is 8.3 million our general fund cost is 2.8 million So you can see the total cost of the department to run other activities But our core general fund cost starts at 2.8 million and then goes down even after that After we start charging our time out to other operations You'll also see the position count in every department. So these just want to highlight the different details You'll see on this page that are helpful information to have We'll talk more deeply in a couple weeks on our cip. We want to highlight different things in our cip You'll see last year's audited last year's information. You'll see the current year's proposed budget You'll see the next three years or next five years what we planned to have in project costs And you also get narrative little narrative descriptions for every project at least a couple paragraphs So you have a little bit of an overview of what that project is doing And projects are grouped by fund department and then whether they're new or existing projects and we'll talk more about that later on Getting back to that caffer thing I do want to point out There are some good stuff in there and things you might pay attention to that people are always surprised with is We have demographic data on the city in in the audit 10 years of data on that in the city So we have average median income. We have population data We have we we compile information so that if somebody outside the city was looking at they get a sense of who we are You'll also see 10 years of revenue expenditure information You can get information on the top property owners. We list the top property owners in there. They're assessed valuations So there's different data in towards the back-back back of the report page 167 on like I said page 51 is good Page 167 through 215. There's some good stuff in there Also, forget in the statistical section. We also track some High-level indicators like calls for service acreage Number of classes that we offer and park some rec program over 10 year periods. So there's some other data Moving on to our last of our reports we wanted to cover tonight is every month We spring to you a portfolio investment report and what this does is it aggregates It's the total aggregate of cash we have in the city So at this point in time we might have a we generally carry between 100 and 120 million dollars in cash Depending on a capital project needs payroll needs and other things that fluctuates Our choice is either park that money in the bank and just let 100 million dollars earn nothing Or go out and invest it. So we have we don't have an investment department We don't have investment staff. We have other duties as a signed team that comes together and makes decisions on investments so What's important about this is council often has told us we don't want to invest in these things We want to divest from these things So what you'll see in this report is where we're investing every little transaction ad and you can have assurances that We're not investing in stocks that you don't want or banks that you don't want or projects You don't want so that's probably the most important thing of that report It just affirms that we're adhering to council direction and policies Yes, and that's slide eight of eight. So we're done with the section I just just quickly is there uh Is there a committee? I mean, you know calpers has sort of its investment Which who serves sort of as our investment sort of deciders? I guess I want to say we have kind of two tiers. We have a Informal group of investment bankers brokers that we contact. They're not Park we don't pay them money They don't get a fee from us, but we call them with advice. They always want our service So we will will inquire to what different people recommending in the market We also check with our peers where people are putting their proceeds at and then that comes down to our group Within the finance department. We have a kind of a group structure that has different subject matter experts And we look at the different investment portfolios ultimately There's kind of three criteria in any investment strategy yield. How much do you want to make? Cash flow how soon do you need your money? And security how safe is your investment? So we start with safety and this is taxpayer dollars We we ultimately want to be safe with our money. We next go to liquidity. Here's the next priority option We want to stay Flexible we don't want to park all of our money in a 10-year bond and then have to wait 10 years to get access to it And then our third and last priority unfortunately is yield because that's our priority So yield is our last concern. So that drives our portfolio down to a place where right now we're earning 2% I can remember time for evermore where you had you can expect three to four percent rate of return in your yield for a similar type conservative portfolio The market changed interest rates went down to zero negative And so for a 10-year period we've seen rates about 1% Instead of 4% that's cost us about three million dollars a year That just because of the fed's decisions on pricing when they bring down their rates the things we invest in the safer things The two-year five-year 10-year loans those rates drive down So our portfolio hasn't been doing great But really nobody else has either so we'd have to get really bold and start going into the stock market Or investing in crazy things like housing projects We don't want to do to really attract go chase yield. And that's just not our primary mission is chasing yield. It's liquidity and security Any other questions from council at this time or I probably over explained that and I can do that You throw things at me to let me know you're done. I'm done Moving into our second only two slides here So one two and then we'll quest positive questions Just a full service plus. This is quick.  What this first slide does is it it talks about our departments As units and then what their impact is on the general fund. So please fire parks and recreation city manager cleric it And most of planning community development. They start with mostly general fund operations Now sometimes they charge their staff out to other projects and and They their cost goes down a little bit But they start with their predominantly general fund predominantly primary service departments And then you get down to our other departments economic development They also part of our housing they manage our housing program. So they get to some of their staff live in the housing Not general fund finance. We're about 50 50 split We we we have a lot of staff doing work for a lot of people outside of the city Outside of the general fund As does hr hr has a bigger split and they also manage workers comp and some other funds And they get down to public works and then water ultimately that there's no general fund impact in water Public works has the road and transportation projects. That's largely in facilities. That's largely their general fund impact So that's that's kind of our core service and you can see the hierarchy who who are predominantly general fund departments And which ones are or less are impacted. What is more interesting in And is this graphic that we keep working on and keep tweaking But if you just assume that those core services like every city has is that center thing You look around and you look at all the things that we do well above and beyond what most cities might So not all cities have utilities a lot of cities rely on districts Those are all managed by the city and then our utilities go beyond our city districts. We serve well beyond our boundaries Some cities have fire departments. Some cities don't some cities police department Some cities don't very few cities contract out fire and bring in other fire services We bring in u.c. Santa Cruz's fire into our operations I'm Also not aware of another city that contracts out accounting services And in financial reporting and budget services, we do that for the county library system We we do all their accounting. We do all their budgeting. That's we do their purchasing. That's atypical. That's not a very normal model So those are examples of things. We have a very active marine safety program We also have a lifeguard services. We provide down the coastline not just within the city that's through contracts So we're very complex very big thought. How can we do things more efficiently for the whole community? Not just Santa Cruz approach. So Just want to let that settle that makes us very complicated and doing things that not a lot of cities do and it makes some staff and finance and accounting get a little Purchasing like this is different. Why we have two different boards We have a separate jpa board of its own entity and they want different purchasing roles and processes than the city council And and they're all the same employees So we have a lot of complexities in our system But I think we end up with a more cost effective for the whole community system But it does make us very unique I'll pause there You know all stuff you should know Of course we are unique Any questions at this time? No, okay Apologize for the slide When it starts it makes sense and then when I look at it I go boy, this is this is wonky So we'll work on this but what it what it really does it we're trying to graphically present how complex We are from a funding financial accounting model So we have our traditional general fund that has some unique things You have your typical departments that we're all used to you can take an accountant from You know a city in los angeles or a small town Locking out and bomb springs or Mountain Fresno and drop them here and they're used to doing accounting for a police department a fire department Those are typical things also in our general fund. We have Trusts that not all cities do we have a public trust. We have economic development trusts Those are a little unique then we drop into our enterprise funds. They have an entirely different business system They're a four sort of a for-profit cover-your-cost system that funds their own capital and they're accounted for as a business unit So instead of treating them as a cash flow cost accounting system We treat them as a full business as if they're a grant of construction or a private PG knee utility So we do a whole another set of books for all of our enterprises which makes us very complex Every individual fund water fund storm water fund waste water fund They have their own fund accounting structure So every operation has it's almost its own accounting system that's blended in with us And their cash is restricted illegally restricted and a lot of different reasons why we restrict them You know our utilities are restricted for this purpose Some of our grants have different types of restrictions So it makes it very complex when you bring things together And you end up with a pile of cash that might be 114 million in our portfolio But a lot of it is restricted money for utility utility funds enterprise operations or grants It makes us a very complex animal. So we have a hard time communicating that to the public You know, you don't find a business that's on one hand delivering security services aka our police department and another hand delivering utility services like our water and out of the same company That's atypical, but we do that and so we we we it's hard for us to tell our fiscal story because we're so complex So that's what we're trying to get out more work on the slide On that And I just said all that so I'm not going to go there But that's just a listing of the or for different revenue restrictions I'll pause there. See if there's anything again just kind of orientation comments and stuff. I think What's also important? Hey, are we growing? I have family members. I have colleagues. I have peers They look at the city of Santa Cruz and they look at their own staffing.  Wow Well, if you look to 2002 so this chart tracks back to 2002 And rolls forward to 2019. It's just snapshots in time.  We're essentially at our 2002 staffing levels What isn't at the 2002 staffing levels is the service expectations 2002 there are fax machines Mail letters and we were talking about this earlier in the last week We're right wrong. We're indifferent You might have three weeks lag time between when you got it when you received it and then when you opened it up And came to your desk and you responded to it now you have twitter you have emails I mean and instantly respond and that's not a bad thing It just the service levels have changed our community has grown. We've become more complex In our service delivery. We've brought on more programs into the city not less So since 2002 our service levels have really increased But our staffing is still effectively at our 2002 staffing level. So It just provides a little bit of context and certainly if you look down in our parks and record department 144 people in 2002 and they're nowhere near that now 87 Most of our growth has come out of our utility funds, especially our water fund Most recently in our public works utility funds Outside of that, we've really not had a lot of growth in our city as a position count We've done a and i'm really proud of this be able to communicate this. This is really this councils and the city managers and prior city managers Lins on it Being smart with where we're investing our money and really thinking about what the bang for the buck is So this city's tried to do A lot of smart things with very little staffing. So that's the storyline here Yeah So last year in 2018 management partners came on board and did this really great analysis of Us compared to other cities We looked at the property and sales tax and transients and tax revenue. We're all in par with our other Comparable cities Our business license tax is far below our peers although our utility tax is above Our police fire and parks and recreation staffing are on par with our our peers or slightly below And the administrative staffing that we have here in the city of Santa Cruz is one of the lowest And that's our city manager finance human resources information technology and this The full presentation is out on our budget website. So if any of you feel you have the time Check it out. It's it's some really good information Just to reiterate this was a big lift that we did last year and we'd like to update the data Probably every two or three years We we love to do it every month But just the resources and the time may not get there But we set we established a really good baseline of how we compare and what are some be Indicators and that's going to help us as we move forward into things like performance measures that are based on the council's strategic Goals that didn't inform the work plan. So Ultimately, we want to get to the type of performance measures that make sense Just and you know the so the the process of of doing the Looking at those financial trends and also the comparisons with other communities was really Illuminating and so I thank you for getting that started. I think we also talked about Looking at some additional indicators as well as in the future And I just wanted to make sure we captured that and I think that'll happen through our work on the site And then coming back to council It sounds sure that sounds accurate to my recollection. Yeah, I mean it's you know future indicators should be driven by the council's strategic goals And the last goals were 2015. So I think when the new goals are set up Then you you decide which indicators you want to measure the progress on those goals So I think we're we're in that place where we're getting closer to that certainly So this is a hard slide for us because we're humble and we don't we don't do a good job Telling our good stories or when things go good and when we get awards We say great job and we put it on the wall. We don't tell anybody about it let those types of things We want to pause a little bit and just talk about our our projection models because we we do a lot of projections now We've reorientated ourselves instead of producing reports from like three months ago We we look out three five seven years and we start projecting out where things are going we've been reinvesting how we do reporting in our department and we've come out with a forecast model that Best thing to do with our forecast models and say well, how good are they? You know, how credible are they and I'd say luck but also a lot of hard work and a lot of thought goes into that What we're showing in this slide and it's a little busy, but if you Ignore the sections in yellow and you show that that corridor in the middle Within the last five years our forecasts for the general fund have been nearly perfect, you know again A lot of hard work some luck, but nearly perfect. I mean 97 accuracy 99 accuracy 99.8 accuracy two years in a row That's pretty darn good to We joke like if you think you're your own self and your own business or your own family and you say today's February 26th talk to your family and say hey by July of 2020 How much do you think we'll have spent in a year and then see what your guess is today versus July 2020? Well We've hit 99 accuracy in our models before And that's great But it gives us worry because our models are showing red And so that that's good that our forecast has been pretty credible pretty realistic But it's also bad because our models are are indicating. We've got a lot of work still yet to do Um, so I just want to comment on that again We're not afraid of saying when when they're a little skew in 2018 We probably over projected expenditures. We thought we're going to do a lot more But our shift focused on certain areas and so maybe we weren't as aggressive with doing other things And we didn't have as much staffing replacement as we thought and 2000 2014 Our revenues outperformed our expectations That was the year the year long drought and we ended up with a tourism all year long and our tut revenue went nuts We had a really good tut year that year, but then tut returned back to a normal level So we're happy to say when we missed it, but by and large our projections have done Recently really well and we're proud of that and we'll let you know when they're not and we'll keep tinkering and adjusting Getting into some data, you know, it's hard to talk up here not get into financial trends We want to spend these next few slides at least snapshotting again We could do deep dives into a lot of our operations and we're happy to whenever you want But at least give you some high level stuff of what's going on in operations So this first chart is police and fire blue police red fire And layered on with their calls for service So if you go back to 2009 through 2018 You look at their total costs in the department and then their calls for service on the line above And they happen to correlate each other and that's great on the other hand. Sometimes it doesn't matter It's just coincidence that they correlate but What what we see here is that the police department from 2009 to 2018 their budget really hasn't increased a whole lot They they dropped a little bit and then came up a little bit more But they don't have a a growth trend line yet their calls for service going back to 2009 at nearly 80 000 Versus 2018 over 100 000 their calls for services increased dramatically, but their costs necessarily haven't kept up at the same place now That's just an example of a different conversation that we'll have about performance indicators because you might look at that and say well that's interesting But you could also look at that and say well Shouldn't we we'd be tracking fte counts versus service indicators and what's been their staffing count? What's been their part-time staffing? What's their overtime costs? So a it's a storyline that's interesting and but b it's also to be careful of when we get to that performance measures It's really important to choose the right measures Because you'll look at data and might be telling you the story that's the wrong story So a if i've confused you enough This is interesting and what it shows you that police department's done a pretty good job controlling their costs While their cost for service has gone up. So that's probably the narrative there When you look at fire their trajectory of their budget has more closely matched the calls for service increase So you see the calls for service about 7 000 and now at 9 000 and their budget almost tracked exactly at that same level What that doesn't correlate is ucse coming on board. So that's anomaly in their data that increased their budget But didn't necessarily Significantly increase their calls for service. It's certainly a little bit But a again a good story there that you don't see these budgets doubling or tripling or even increasing at an exponential value They're really holding steady on their total operations since 2009. So those are both good stories positive stories there There's a busy slide for you Sorry about that I can be known to get too busy But what is on the slide if you think of the left side of it with the arrow that points you down below It the top left corner tracks overtime. So that's overtime across the entire city So all operations citywide including the library water departments What people often might assume is we have we we use a lot of overtime in any city and in this particular city We don't a police and fires where you typically see overtime That's exactly where we see overtime in this city. So if you think through our water department, they've had a big lift They've had storms 17 and 18. They've had drought They've had a lot of projects yet their their overtime is hasn't tripled in costs same with public works They've had a lot of demand for projects and yet you don't see their overtime Because the city does a really smart job of how do we manage staffing and how do we limit our costs and overtime? So once you get beyond police and fire you get down to water public works A little bit in part for recreation and then the rest of the city I had actually increased the parameters of that graph to see anything for the rest of the city because the numbers are so small So that's just showing that we really don't rely on overtime in this city outside of police and fire And then that fire Jump when you look at that you'll see Certain levels in their first couple years and then it it came up to a new level about 1 1.1 to 1.5 And then this last year it spiked up Well that chart below kind of tells that story in this last year in 2018 We had almost a million dollars of reimbursable overtime where we were sending people around the state to help with fires So that that's a big big storyline and what was going on in that department's overtime So it's it's also telling us where you can't just look at the total numbers You have to drill down to see what's what's going on and what's driving that So just wanted to pause there the charts on the right are just like well I don't know We've got a little too carried away But there there are some of our other departments parks and recreation public works Planning community development and all of our administrative services where you can see their trend lines over that same period of where their actual costs were and where they're at And outside of parks and rec that has had seemed some increases But a lot of that is known stuff that we were doing You haven't seen a lot of dramatic changes in total costs in across the city Similar to that position we looked at before Because I have a quick question about the overtime for the strike team reimbursements for fire Is that reimbursable by the state since they're being? Yes. Okay. Yep And it'll it'll probably end up being more than that when you Cumulate it because it For us that was our accounting period But if we got monies in october november it it's not reflected in in In those june of 2018 numbers. So it probably ended up being a slightly higher than that This is another way we're talking about purrs. This is another way talking about their their impact of their investment So this is tracking Forward where we think purrs rates are going to be 2018 through 2022 and again, they've already doubled So we were already paying double more than what we used to just a few years ago There aren't a trajectory Double once again over the next five years and what you're seeing is that blue bar on top is that shortfall investment If we backed out what our costs would be under a normal situation It's those pink and red bars below and it's that blue growing bar on top That is what we're having to repay because of their shortfall and investments not again Not just their losses, but their shortfall and investments So it's just another way of looking at how big those numbers are and how hard it is How much revenue we have to increase revenue or finding revenues just to keep up with these costs And then we finished with just a quick snapshot of where our revenues are our top tax revenues in the city are doing Property tax sales tax utility users and tax transit occupancy And what you'll see is sales tax and UT flat You know sales tax and a recovery period you you would expect seven eight nine percent growth rates and we're not seeing that We're seeing three four fives and there's a growth rate in in 2019 that's the measure of sales tax that Was approved this past june But outside of that we're not projecting major increases in sales taxes of the industries changed consumers are spending money differently And that's unfortunate because that tax base is not at the same growth rate that we'd like to see it at we're in I'll just comment on the tot growth We're not projecting major annual increases in tot growth. What we're projecting is construction projects So hotels finishing construction coming online and ultimately a lobby here coming online So we're the the significant growth there is more staggered to as more properties come online. We're expecting Higher tot returns to the city And then finishing with oh, if I could maybe just we have a question by count question I'm just curious on the projection on the property tax Is that or I'm wait, is that property? No. Yeah. Is that purely based on? Rising property values pretty much. Yeah, so the assessment so you don't you see the The line keep going Yes, and we haven't factored in what the impact would be from a recession on our local housing market And realistically Santa Cruz hasn't been impacted terribly by Recessions in the past the past who you haven't seen how these prices drop the greatest recession we hold steady So typically this still is a desirable place to live and typically there's still the values still hold themselves around here So we're we're assuming that those these continued increases in the property tax base Thank you And what you see on this last slide or some of our other tax revenues. Oh, sorry. Yes one question. Yes, please What do you attribute the utility user tax growth to the slow in that growth? It's a similar thing in that more and more people are going to go away from their landline phones Away from their Comcast cable packages and away from other things that are currently taxable and utility users tax We're going to end up with the utility users tax. It's really our own tax on water garbage solid waste You'll see less and less happening until there's reform to capture these new industries that Replacing it. So we're just continue to assume that there's be less and less growth there. That's unfortunate And where that conversation if you look down, we've added a new revenue that doesn't exist because it's not it's called lost sales We just wanted to conservatively very conservatively the number could be easily double What if revenue behaved more normally? In a very very conservatively We looked at sales tax and we looked at tot and utility users tax and it's Largely in sales tax, but we think very conservatively There'd be at least a million dollars more in our general fund every year If things were behaving more normally if we weren't having these disruptions in this new economy if if our If our tax system was reformed in a timely manner That's that's a very conservative It's going to be a lot larger than that but that's the type of impact that we're seeing in our revenue base At least a million dollars a year if not much higher And we put cannabis here because it comes up a lot. It's still a very small revenue base It's talked about a lot certainly But it's it's not you know, it's not a large revenue base for the city at this point in time Where our projections have it at a we're Looking at a scenario where it's plausible that the rates there might be pressured reduce our rates going in the future So that's why you see the spike in what would be this year's rate and then a possible reduction in our out years All pauses there that was kind of expenditures revenue in the general fund Again, happy to go deeper and dive, but uncertain about how deep we want to go in this form Slide 32. We're almost there home stretch So we wanted to talk a little bit about our fiscal keys And my colleague here Tracy we were talking about the slide and we both agree There's a better way of presenting it and we'll get there eventually But what we wanted to what we want to talk about is our reserves and where our reserves are currently and where we're Or we might want to look at things in the future So currently Our reserves our pension reserve and our primary general fund reserves are funded where they need to be when we look at our 2019 budget And they're based on a percent of operations 10 and 6 percent 10 percent and then 6.7 percent. We are funded our reserves That's a good thing. We were meeting our reserve requirements When we look at our two trusts in the general fund our city public trust and our economic development trust Together they're short about two million dollars because over the last several years we've we've eaten down some of our We're we're project ready ink and we've been hitting some ready ink from the past So we're we're starting to take away some of our flexibility in our trust funds We're hopeful that will turn But at this point in time What we're highlighting here is we're at a place where we don't have a lot of excess cash in the general fund In fact, we're probably we are clearly short in our trust where they need to be And we don't have funding set aside for natural disasters. Now this has become more Alerting when you see the impact of fires and and what it can do not to a whole community But even a portion of our community. We're certainly susceptible to that drought Susceptible that floods climate change very susceptible to that So we don't have the money it would take to wait 18 months for FEMA to get reimbursed for to give us that That bandwidth our reserves that we talk about above those are meant to help us as economies change And we can up by ourselves sometimes instead of doing what we had to do Most government agencies had to do in seven eight and go to completely the closing services shutting down services Almost overnight And so what those reserves are meant to do is give us a little flexibility and planning ahead and being strategic about that But we don't have those type of reserves to give us the bandwidth if we have an unexpected large disaster and we certainly don't have What I call opportunity reserves an operating reserve that if something comes up that we want to spend one time money on That we can do that easily. We don't have that setting aside a lot of Operations that's becoming a more best practice of thinking about not just your minimum reserves But what type of opportunity reserves you might want to have in case something comes up because it always does every year There's something that unexpected A council request a community request might be good to have a start building that reserve up So those are the types of things we think we're short Let alone we might want to increase our reserves because we anticipate a recession coming It will now would be the time to start being prepared for that Again, our story is at least we're funded at a minimum levels We have other reserves in the city And someone just highlight the water water operations did a really nice job several years ago and they Work with us and talk to us about it The types of targets they want to have and they set up in an equivalent stabilization reserve They looked at a 90-day operating reserve and they do have an emergency reserve for that unexpected What in case this happens because they're very susceptible to climate change issues more rain less rain Rain is money. No rain is no money But consumers anyways Where we don't have a lot of reserves is what you heard today's our sewer funds or solid waste or parking our facility or wharf We have other major operations that have large capital investments that we don't have targeted reserve levels yet And those might be a place that we're talking with our operating departments about where those numbers might come in at The good news is Is if you think of four keys to fiscal health and these are things that many cities when they get into trouble don't follow Well, they don't monitor their cash balances. They don't look out. What what are the cash needs three years five years out they don't They might have budgets that rely on one-time resources to fund operations. We don't do that They they don't look for far enough out and they don't invest enough time in developing models that Are reasonable for projecting out and they they're not thinking about their service level What does the community need and where our gaps and I think this city we can confidently say in those boxes? We hit those boxes now the level of Might be subject to the the lens of the person looking at it But my larger I would say that if I had to be asked we hit squarely all those boxes We're doing a good job with our long-range planning. Sure. We could do better We're doing a really good job with our budgets. We can do better We're doing a good job managing our cash and we're doing a reasonably good job of listening to the community And what their service expectations are and we're trying to be responsive And the main point here is government agencies all too often will Delay the hard decisions kick the can down the road and let somebody else figure it out And this city for has a legacy decades decades decades of making the hard decisions looking forward and planning ahead So kudos kudos to this council and and city manager and all their leadership Finishing with a lot of things we did last year and things we've had in place We adopted a lot of budget policies that do things like hey one-time revenue should be used for one-time resources Don't use one-time revenue to fund three years of ongoing resources adopt on-time budgets Build and rely on good forecasts. We've adopted this council adopted and set some good guidelines in place last year and I've previously used other guidelines to give us a strong foundation for how we manage ourselves Fiduciarily because we have a strong fiscal fiduciary responsibility you do as elected officials and we do as staff to guide you on that So kudos to all the work that's been done in that space Finishing almost to the 36 or 40 Recapping that's things that we just went over I could repeat them. I won't Recapping the bigger picture of things we're not in a Local government is not in a boom cycle. Our economy is doing well. We're not because of a lot of things We've talked about we have concerns about what the state's Investment issues are having with our pension costs and those numbers and that impact on our Ability to deliver services we're concerned that tax reform hasn't kept up with where it could be and Ultimately we want as a recession is coming is as we have risk to other things Now would be the time to start preparing for yourselves with cash users just in case things start happening We can be responsive and we don't have to be so knee-jerk in our reactions Finishing with what's next just as a preview what's coming and then there are some actions We need you to do March 12th. We're going to spend some more time in our capital investment program More about our unfunded needs and just where that's at We want to work continue to work with our community Our city council ad hoc budget committee on a lot of funds whether it's focus groups Community orientations presentations of this council. We want to be listening and making sure that our How we're presenting it to you and to our community is reasonable and makes sense And of course we have April 22nd as our expected date the budget will be released May 8th a full day of budget hearings You know have your coffee to your run be alert. It's going to be a good day And then may 28th is our target for budget adoption That's the formal end of our Presentation I could pause there before we talk about actions that are in the actual staff report Let's go ahead and pause we'll do questions maybe open it up to public comment And then we'll do the actual recommendations Are we planning on doing? A committee as we did last time of folks from the Community to look at the budget. Is that going to is that in there or is that not Engaged budget okay, but there's there's no date on it yet or anything. We're still working on that. Okay And um marx I had one other question about Uh city public trust Would if would sky park monies go in there? Yes, that's what that trust was created for was specifically sky park. Okay, and you don't have anything going in there in 2019 We we now we're close But um that will help Aren't any further questions at this time We'll go ahead and ask if there's any member of the community who wants to address the council on this item This is item number 20 in our no. Yes. I'm number 20 in our agenda packets It's really quick. Sorry On 20 um slide 24 big five financial trends Um, I'm just sorry just wondering um in terms of authorized positions. Are we talking here about um full time equivalent? Temporary, I mean because I'm looking at parks and rec and that looks quite low But yes, it excludes our temporary staff because thank you Okay, and I was remiss I left a slide shorter just recapping what's in our staff report Sorry about that But we have some budget cleanup items kind of summarized as things that we would normally clean up No impact of the general fund or no impact of operating funds just reallocations Carbon fund projects and cdbg and HUD changes based on the final HUD report We have a parks and rec utility equipment that was scheduled to be in the budget and just didn't get into the document You saw last june and that was our our error and there's recognizing that we had some insurance reimbursements again no change Um for a claim that we have we have about 600 000 that came in to reimburse the city Those are budget action instead of required Then we have some funding Requirements certainly our homeless support services have we haven't have a full adopted budget for that type of program So we need to recognize those costs. We have some FEMA storm FEMA 2017 typo storm damage administration that we have to do We have our election costs. They're done. We had elections and the costs are higher than we had and then We have an urgent project on our war for our fire marine marine headquarters that has it's Hopefully the project building might be a four million dollar project We're trying to do a band-aid of about 80 000 to address them Roof in some other significant issues to make a usable space for our employees who are there So those are the actions that are in the budget Great. Thank you marcus. Sorry about that. No, no, no problem. We'll go ahead and have public comment and we'll have two minutes Good afternoon, Bruce van ellen santa Cruz. Um, I I hope this is the right item I saw this as some budget adjustments and that's a little different from this very impressive Um presentation, um, but I'm are you actually making some budget adjustments because I have a request if you are Will you go ahead and pass them? Yes, this is encompasses the budget I'm here to ask you to reinstate the um Funding that was adopted by a previous city council for tenant legal services and at that time it was 15 000 What the group that was forming the the legal services non-profit found was that at that level of funding A little could be done to get started and collect some data and do some outreach But to actually have available attorney time it actually it really didn't Fit within a 15 000 budget and so um, we would also we'd like to request that the 15 000 originally appropriated be reinstated and and Available and an additional 15 000 We have a couple attorneys who are willing to work at at reduced rates. Um, this services to provide Tenants with legal support Even and that additional amount would pay for very little courtroom time by attorneys So mainly this is about attorneys who are available to advise and This is a service that no one is providing right now The california real legal assistance does have their own services And I know they're hoping to get funded to be back in the city But they really do a different kind of thing from what this little Non-profit is is aimed at doing so it's not really a duplication of services Happy to answer any questions if you have Thank you Good afternoon council. Um, I'm here to um, hopefully infuse some Opportunity for creative thinking there was an excellent conference up at peace united church this weekend on Reimagining god in the face of god of nature in the face of extinction So it sounds like it might not relate at all But I wanted to use a concept that I heard from there It was an excellent conference very intellectual very cerebral So a little hard to follow in some ways But it was excellent for helping us to really understand How to create platforms that are going to then translate into real tools To help us face these problems of climate chain and extinction So what I just wanted to say is um In light of that if you can put that aside for a moment With one thing i'm going to extract. It's the concept of under commons So under commons are things like animals homeless people Trees forests Our water with kind of the idea that All these things are helpful as long as they're healthy and we're all interrelated So it might be a new concept. So just hang with me for a minute I remember a few years back when chief vogal stepped up and said something like 1996 tickets given out to homeless people less than two percent resulted in any kind of payment whatsoever Also another thing that i've seen is a constant beefing up of the parks and rangers Walking down the pacific avenue and all over our parks with guns. It's another police force I'd like to see the city really analyze Is and also the ambassador staff that also are there to help but actually most of these people are harassing and moving Homeless people on endlessly. I would like to know the actual cost of this and could we come up with creative programs Something perhaps along the lines of the downtown street teams only with paying minimum wage, of course For people to be employed and to revalue these things into our economy. Thank you. Thank you Okay, any other members of the public? We'll go ahead and return it back to council for action and deliberation council So I I do want to make a comment. Um, actually I have one another question that I Would like or one question that I like to ask and then I want to make a comment. So the the question is um related to the um The budget adjustments um I just want to ask the question about the 183 thousand dollars in FEMA services being charged to the general fund I'm going to assume that those could have been charged to enterprise funds Were they were we able to charge them to enterprise funds? But I'm just wondering why it's all going to general fund Given the nature of what the FEMA funds are generally used for FEMA funds have been hitting many funds these particular ones were more attributed to cleanup costs attributed to general fund services like streets debris removal beach debris removal So it's more about these types of costs and the projects we're reimbursing for our general fund Other other FEMA costs were for water and other things were were covered. Yeah. Okay. Thank you And so I just wanted to make a statement here about the request from Tenant Sanctuary as Some of you will recall we approved The round this time last year a little earlier An allocation of a 15 thousand dollars with the expectation that we might continue that funding for tenants legal services and for a variety of reasons it's taken some time to For for the organization to for the group to be able to Actually deliver those services and then Also for us to then actually release the funding I I was apprised of this in early January that we needed to actually take action in order to make those funds available Now that they're ready to use them Given that we had some tentative agreement to Provide these funds in an on an ongoing basis and and this was really 15,000 for half a year over a year ago, you know, I would I would I want to support The requests that's been made by the the group Especially given that they're not in a position to Provide any meaningful legal services without having attorney time And given that the city has has not Provided does not support that in any other way We we've talked as you all know about the what tenants are facing in our community and I think that it's a it's a small amount. It's a small request that would Certainly get them up and running. It would also provide us with some baseline data For future budget considerations when we we talk about next year's budget If they actually were operating we could see and we talk about You know data-driven decision-making Evidence-based that would give us some Some measure of what they can do with that funding and and what we might be able to do in the future So I would support I know this is not the time to start Asking for additional funds, but I think this is kind of a special circumstance given that history And the challenges that we've had in getting it up and running. So I I want to support that request when we Make the motion to amend I I'd like to include that as well If I can my recollection there's my recollection on that specific one was that we would be moving ahead with appropriating the money in the mid-year budget given that there wasn't The services used last year and then revisit the process that that does that seem accurate to you? Okay so I I I'm not sure I've Who we're working with on this casey, but maybe bonnie or Or somebody can remember that 15 000 that we allocated in terms of the project okay I think it'd be important to revisit where we are where the process is what the expectation is and then Looking at but I do remember the tentative understanding of that there wasn't the ability to get up and running So there was this sort of understanding. We wanted to roll that over for sure that 15 000 But okay, yeah, I'm generally sympathetic, but I would prefer that we just put that one off for two weeks So we can get the background. Yeah, is that Sure. Yeah, that's that's fine. Um, but I do want to I would like for the the council to consider that request So are you making a motion to move the item with that direction or I guess it would be so I I If I don't want to cut off other comments about the budget or any other questions that folks might have but I'm Okay council member mires actually So, yeah, I would be supportive as well. I I talked with casey quite a bit about the the status of that so You know, but if we can maybe do it next, you know But I had a question for marcus on the 83 000 384 for the some of the expenditures related to the homeless camp, um Is there any way that any of that could be Realized back to us through any of the existing heap or cash funding or any of that? Is there any Is anyone looking into that? Yeah, it's something we're going to be coordinating with the city manager's office. They're Certainly been submitting their requests and See what the criteria is because we've got a lot of Possible eligible projects Thank you Yeah, um The liability insurance thing could you go over that a little bit and you'd mentioned an email about a jpa pool Maybe explain a little bit what that's about and how we are insured Yep, thank you. Happy to you I've seen this had to do with the uh the shone arled case Like most government agencies were self-insured because the cost to ensure a police department or fire department would be astronomical So we self-insure ourselves eventually we set aside money and we we cover claims and we adjudicated them ourselves instead of any insurance broker We participate in a risk pool so that there's we pull our money together And so anyone if we have a you know a catastrophic claim we can leverage other people's money so it doesn't Traumatize any one agency so we participate in a pool with other cities we call We put our funds together and we help cover each other's Larger claims so the first million dollars for us we pay ourselves It feels like a a large deductible anything above the million we can go to the pool and request a reimbursement back to us Because we pay into the pool And so that's what you're seeing here We paid the first million and we have another 600 000 that went above the million that's coming back to us In the long run because we're all sharing each other's risk We'll ultimately pay the full amount over a long period of time because we're all self-insured But it feels kind of like an insurance program with a million dollar deductible, but there's some nuance there Where does the million show up in all these numbers? It doesn't it's we have an amount that we set aside every year for an Unanticipated loss every year we have certain claims So we had that we have a budget for unanticipated losses this one Consumed above and beyond our budget allocation The other question has why did the election expenses go so far Above what we had budgeted What had we budgeted? Yeah, I think when the budget initially came in things like the citizen's Initiative that the city has to pay the cost for wasn't contemplated, you know Nine months earlier when the budget was the firstly originally being put together So that's a bigger big driver. Do you remember the placeholder that we had there? The placeholder so the placeholder again going back in time We ended up doing a special election in june and then we had the citizen's initiative in november We had had a placeholder for one election cost not two and then we had one that came earlier So I can't remember the exact amount, but we had enough to cover most of the june costs But not all of it and then the leftover in november Okay, thanks, and I had a question about the $1,000 for the ocean villa. I think Maybe tony elliott could respond to that or somebody from parks and rec possibly Just wondering how this money was spent. I guess it was spent as part of a vegetation debris removal But i'm not understanding. Does it happen every year or Is this a one-time expense? Yep, tony elliott parks recreation. This is an ongoing annual expense Excuse me. I've got chewing gum We there's an ongoing agreement that we have with ocean villa hoa basically This has to do with the maintenance of the path. It's just an earthen walking path along the fence Near jesse street marsh We do the work on behalf of the hoa We do that in partnership with cal fire And leverage employee various employees or various opportunities Through cal fire for example the Corrections department cal fire will work with them to do the maintenance on the trail. So it's an ongoing project Basically how this works this budget item We will do the work and then we will build the hoa So this is the budgeted item to allow us to do that work And so the thousand will go to cal fire or go to the corrections department or it would go through cal fire Which is our contract? And then payment to the to the workers to the labor whoever that might be and you don't know of hand how much they make an hour I do not Thanks, I don't know if we can get that amount possibly if we could figure out how much the I guess the inmates who do the work how much they would be making an hour We can get that information. Yeah Thank you for the presentation. Um, I am ready to move to amend the fiscal year 2019 budget With the I'll just rather than listing them with the rec the categories listed in the staff report And authorize the city manager to allocate Um within the applicable fund the budgetary changes to the appropriate accounting classifications to approvalated applicant applicable transfers And I would like to include in this motion if it's appropriate a direction to staff to come back to us for consideration of The tenants legal services Request at our um, february 20th or sorry march 12th meeting second is the 26th So that's a motion by council member brown seconded by council member crone Uh, so that's fine. I should I went back and checked and it's scheduled to come back. So that was a plan. So yes, okay Great any further discussion All those in favor, please say aye. Aye any opposed. Okay. That passes unanimously Thank you The last thing if it's your just direction decision We're probably going to do it anyways, but didn't want wanted to recommend that you consider a motion to direct calpers Oh, yeah to reconsider the investment strategies. They might be already doing that but anything along this Space would be helpful. I'll I'll move that the city issue a letter to calpers to uh Direct them to uh, and I may deliver that personally. Yes, please I'll second that motion And I would say yes with the earlier motion that we share our correspondence with league of california cities and other local Jurisdictions to get them to weigh in as well. Absolutely. Okay. Council member clever I maybe suggest a potentially friendly amendment to add the language of Uh, encouraging calpers to make responsible investments that represent the values that we as a city support Specifically, um, there's an issue with their investment in the private prison industry That is a big topic of discussion around the state And I think it would be great if we're writing them a letter to encourage them to increase investments that we stipulate That we do not support the investment in the private prison industry or oil I'll I'll accept the the amendment. Okay. Did you catch the amendment? Okay. I will as well. Okay. All those in favor Please say aye. Aye. Aye. Any opposed Passes unanimously. All right. All right. So um Item number 21 And um, so this is the affordable housing inclusionary ordinance amendments And this is the one I think tony if you wanted to make your uh statement Do you want yeah, I was just going to say if you we were going to um, uh Vice mayor comings and I were going to provide a um A short report. Um, but given correspondence earlier today. I wanted to Hear from the city attorney first. Okay. So prior to having the report, we'll have the city attorney. Yes. Thank you Mayor Watkins members of the city council Earlier today, I sent the council a Uh, a message that attached a letter that we received just late yesterday from the Whitworth park and law firm As you know, they are representing the petitioners in the hatch pomerance lawsuit, which is the pacific laurel project being developed by dev dev con Uh, that the council approved back in december one of the causes of action in that Uh lawsuit challenges the city council's decision in september an october time frame to amend its inclusionary housing Ordinance in several respects um This item Is as I read it, uh in part uh A desire express us a desire to Revisit that ordinance that was adopted last year and to rescind some of the provisions of that of that ordinance um And in particular that the lawsuit challenges the 2018 ordinance on the grounds that it Allegedly does not conform to the requirements of measure o the affordable housing Uh provision that was enacted by the voters in 1979 that says that 15 percent of the residents Residents residences Constructed in the city should be affordable to persons of average income um So that's an issue in that litigation and against that backdrop When I read the staff report, which unfortunately I didn't have an opportunity to Do before the agenda packet went out this A particular uh statement caught my eye which refers to the 2018 amendments and says These amendments undermine the intention of the voters in passing measure o and In addition or contrary to the city's goal of increasing the number of affordable housing units for is its residents I'm not going to comment on whether or not I agree or disagree with um the statement particularly with respect with respect to um discerning the intention of voters By reference to something other than the actual text of the measure itself but That being said the letter that we received from the whitworth park and law firm recommends that the issues in the case namely The validity of the 2018 ordinance and the validity of the council's decision approving the dev con project Should be bifurcated for purposes of negotiating a settlement whereby the city would agree to amend Its ordinance more or less along the line suggested by this agenda item And since we just received that yesterday, I thought it would be prudent for the council to Table this item now until you've had an opportunity to discuss What's proposed in the context of the pending litigation. So that's the right reason for the recommendation um to table at this time Councilmember brown Thank you for The clarification and you know, I'll just say Just a quick comment, you know, it's unfortunate that we Received this communication without enough time to actually make the decision to consider this enclosed session earlier today Rather than deferring it and you know, I had been in conversation with Mr. Park and prior to the lawsuit about You know the our inclusionary housing ordinance and then those conversations Seized when the lawsuit was filed. So I wasn't sure where I I just found out when when you found out where Their council was looking to go so Given that you know, and I'm I'll just again express my impatience about getting this heard and You know it deliberated upon by the the current council, but under these circumstances. I do think it is prudent to Refer this to closed session on our march 12th agenda I do also want to ask though if I can is it possible right now to clarify because I like I said, I'm impatient and I um I understand that the planning commission meets the first and third Wednesday or thursday's excuse me So this would own if the planning commission is indeed meeting on march 21st This might result in only a two-week delay in getting it to to the planning commission as I think you all understand that the the recommendation here today was not You know a specific review of an ordinance or or reading of the ordinance, but rather to Refer it to the planning commission for their recommendation And and so that would just trigger a whole series of of actions that might be taken and and other conversations So, um, I just don't want it. You know if if we If we delay will the planning commission be meeting can you could you know? I mean there's they're scheduled to but um, they don't always meet every other You know every twice a month. So okay. Thank you here to answer. Mr. Butler That's okay. I was looking at you because you control our calendar, but it's not necessarily all of them Good afternoon, mayor and council members leave out there. They're planning director and yes, we do have those times reserved um, I would say however that uh, there's some work that needs to go into this and so When we get the council direction, we will pursue that That planning commission hearing date and subsequent Um council dates as expeditiously as possible We haven't scheduled, you know, what those dates may be and it may involve some Consultant work in advance depending on the council direction And another question if we do refer it to closed session. Can we also place an item on the open? agenda So that we can consider it based upon what we Our discussion in closed session We wouldn't have to delay another two weeks. That's up to the pleasure of the council Council member mires and then council member crone and then council member matthews If it sounds like we might make a motion to table this so I was just hoping to make a few comments if it's going to come back um so one would um Just be that if we could get the full text of the ordinance We have just certain sections and so I'd like to see sort of a red line version if possible Just to be able to read the whole ordinance through with And then in my research on the ordinance that was passed in september I just want to make sure that Or tony I would request in your review of the ordinance Just making sure that ab 1505 is That we and in the staff report if we can just make sure we're Not getting into a a place of where we might have some legal challenges So I do want to just understand the whether the consistency with ab 1505 if possible Thank you fair enough Council member crone and given that this is a report authored by council members I think that might be a separate memorandum attached to the report Yeah, I'm just wondering tony why would this stop All we're doing today is as um council member Brown just said is referring it to the planning commission So why why couldn't we still refer it? We're not we're not making a decision So I mean doesn't tell the court or a court in the future that that we're approving it We're just sending it to the planning commission Yeah And and I gave that some consideration and and just to follow up on council member browns earlier comment I also considered whether we could bring this forward as a subsequent need item given that it just came across my desk yesterday Um, and I don't think so because there's not any urgent need to take action That that couldn't occur at a subsequent meeting so um And you're right referring the matter to the planning commission in and of itself doesn't amend the ordinance and so would basically um constitute acquiescing to What is essentially a demand made in the lawsuit? but That being said the time constraints also limited my ability to analyze fully the implications of What is proposed here in the context of the lawsuit and in the context of the park and letter? So that's another reason for my request for additional time As we move forward it seems like the word vested to is going to become an issue So it'd be great if we could get some responses to that later In your that would be in the form of a confidential attorney client privilege memorandum, which we're working on. Okay. Thanks council member matthews I'm I support tabling this to a future meeting I will say that as the city attorney mentioned this was prepared by a couple of council members and Did not have the benefit of staff review The language is unusual in that it is written in the first person often so Those were a couple of my notes. Well, whatever. I mean, that's unusual And there are many statements that are made as assertion, but are are genuinely opinion. That's fine It's written by individuals, but I would say when it comes back to us We did get additionally after this was appeared in the council packet in the meeting packet We did get some pretty specific comments from staff on Disagreements that they had or clarifications. So when this comes back to us I would like to have the benefit of A more fully fleshed out staff if it has to be a second, you know companion piece Then that's what it is. It would include comments from appropriate staff. It might be planning. It might be economic development in terms of affordability requirements It might be city attorney in terms of state legislation, but that way we'll we'll have a A more complete idea of what we're dealing with Okay, we'll go to council member brown and then I'll open it up to public comment and then we'll take it back I will just comment that we actually did Vice mayor Cummings and I did Send this to staff. We had we met with them. We had multiple conversations and so this um This was presented in december And so we did put some thought into it the version that you received for a variety of reasons Mostly technological challenges on my part. Um was not cleaned up However, um those converse we we did discuss it with them and they have some ideas about What they might do for um, it should we decide to Send it back to the planning commission that they will be involved in that discussion And so we'll hear more from the staff So we'll go ahead and open up to public comment. Then we'll return back Is there any member of the community who'd like to address the council on this item? We'll have two minutes Good afternoon mayor and council members. My name is mark misciti miller And i'm a former planning commission for the city Commissioner for the city. I spent two terms serving as a planning commissioner And I wanted to just share a little bit of a perspective from the planning commission's point of view The ordinance that you are considering amending was The result of many years of work Not just by planning staff But also by expert consultants and uh of which a capyhead with uh kaiser marston Is a well-respected expert in the field of affordable housing and um economic feasibility We also received substantial input from members of the public who had much to say about this issue and the entire package of amendments that um You're thinking about revisiting Was really designed to substantially increase the supply of housing in our community Both market rate and affordable housing and one of the things that Was somewhat, um, I thought innovative was the idea of building in flexibility into our ordinance Which will allow us to respond to specific conditions that might Arise during the development of any given project or any Given socioeconomic climate that we might find ourselves in in the future one thing, uh Which which goes directly to the paragraph 24 16 0 55 dot four Which allowed this flexibility with approval of the planning director and the economic director And what I sensed in the staff report, uh, was that there was a lack of trust Between the council and the department heads and I thought, you know one way of dealing with that would be to retain that very important paragraph Providing flexibility and simply amend it to bring it back to council approval for council approval Thank you. Thank you, and you're welcome to submit your recommendations to us. Thank you Okay next speaker you'll have to hi elise casby. This is an issue that I've been um Diligently attempting to volley follow and I've been to planning commission meetings The ordinance um that has been to referred to that was passed by the city in 2018 of september 2018 I'm not exactly sure on what that is my concern is that the will of the voters And I think the the entire issue that the city is grappling with with really Building more housing units that are affordable or including those affordable housing units in the market rate development I want to um To say that I think that on the part of the planning commission and the city in general there is a kind of um reluctance and a An unwillingness to come to understand that there are designers and developers who use problem solving design methods with a much greater broader scope of Design flexibility than the current design dev The building contractor dev con is doing I think there's a habit in the city of going with certain kinds of developers and certain kinds of Interests and as long as this happens We're going to have a very difficult time To want to allow the 15 inclusionary of affordable housing Let alone to really I think get more real about the need for actual low income housing and not And rigidify our class structures in the city But really create pleasing designs and build housing supply That really is inclusive and allows for the diversity and liveliness of our city So what I would just ask is that the city not go into um contortions to try to Uh, as it seems in this wording, I might be wrong wave the retain in lufi's. Thank you. Thank you All right, let's go fast. Good afternoon, mayor council members My name is Robert singleton. I'm the executive director of the santa criss county business council Which is a consortium the 80s so largest employers in our county I'm also a planning commissioner for the city who vote in favor of the policy you're attempting to rescind Beyond that. I'm also a founding board member of santa cuisine be a board member for the housing advocacy network And a board member from new way homes a local affordable housing investment fund run by sibling simon To put it bluntly, I'm no stranger to the issues related to affordable housing in our community In fact, it's been my main issue for some time now What I have to say about your council report frankly nothing you aren't expecting I tend to side with staff and then I think your good intentions about the policy You're hoping you lack results in less affordable housing overall and less housing overall than the alternative Keep in mind we had a listening tour for over a year under mayor chase and the mayor charasas Which featured thousands of participants which ultimately meant to inform the very policy we're discussing today Beyond that we did deep financial feasibility now performed in the very policy You are considering which was performed in accordance to state law which explicitly requires a financial nexus study to justify any changes to an inclusionary ordinance The bottom line is that staff the housing community myself and others that are the loss as to why you're doing what you're doing I get that it's a campaign promise to stick it to the evil developers But we all know how ridiculous that is we don't have huge developers and Santa Cruz making windfall profits on the minimal housing production We've had over the last 40 years. We just don't to put the affordable housing crisis in perspective Let's just say we could use the city's entire general fund exclusively to build 100 affordable housing I know it won't happen ever but for the sake of thought experiment. Let's do it. That's roughly 130 million dollars So let's say you you could build each unit including the cost of land for 330 thousand dollars a unit Which again will never happen for the sake of easy math Let's do it. That means in the best year under the best conditions under completely unrealistic assumptions You can build 390 units of deeply affordable housing. We have 24,000 housing units in the city of Santa Cruz That means you can build roughly 1.6 Uh increase the city's housing stock. This number is interesting for two reasons one It's essentially the same figure that all of the measure h Measure h money you could have been used to build over the entire life of that ballot measure And two it's close to the total number of units that have been built over the entire 40 year lifespan of measure O in the entire city by increasing the percentage area you are making it hard to build housing There's no line of nonprofit developers hoping here to jump onto this market. Thank you. Thank you Okay, and you're welcome to submit the comments. Okay. I appreciate that Okay, so that will I believe conclude public comment for item number 21 And we'll return it back to council for action and deliberation This is item number 21 for affordable housing This is the uh suggested change to our Inclusionary ordinance amendment Okay, well, we're going to go ahead and close public comment unless you wanted to say something specifically about the item The item was to um to make changes to our inclusionary housing provisions and our To increase the inclusionary percentages back to 15 from 10 is the is the main There's some other things in there, but we're um likely to defer that for today Okay, so we'll go ahead and close public comment at this time council member matthews. Did you I did want to just add I do understand that the authors of this agenda item Consulted with staff at the end of 2018 But my understanding also was that there were some serious issues that were not incorporated into this So I do want to make sure that there's the opportunity for a full staff commentary In some form or another um for the issues that are presented Okay, so do we want a motion to move forward council member brown. Yeah, I would move that we refer uh the um The recommended action to our closed session for march 12 I want to be clear that I'd like to have this happen as quickly as possible. So for our march 12th meeting So we have a council we have council member brown making a motion to refer this to closed session for the march 12th Second it okay seconded by council members for the discussion Okay, and I just want to make one comment because I know that there are council members who are wondering about my decision to do this Given that it um may not um Have uh bearing on on the lawsuit I do want to respect the the ability of other council our council colleagues to to have that conversation And given that there's a lawsuit um, there's some things that we just won't be able to discuss here And so I just want to make sure that um people get that opportunity um And so that was that's my thinking if it if it doesn't delay things much longer. We've waited this long and um we've I think that's it's fine All those in favor, please say aye. Aye. Any opposed no, so that passes with council member crone galevour Myers brown matthews and vice mayor Cummings voting yes and myself voting against Uh related I just wanted to point out for those who want to take advantage of this we did get a um information about uh webinar about uh meeting california's housing best needs practice for inclusionary housing Webinar series sponsored by the local government commission western center on law and poverty and crl a It's coming up february 27th And uh another day shortly thereafter march 13th, so um anyone's interested Easy to attend Okay, so we'll go ahead and move on with the agenda and now we're onto agenda item number 22, which is the uh motion that was uh Made at the last meeting to consider scheduling a study session related to transportation demand management um the agenda report was written by staff, but it was a council direction Martin did you want to know what was not written by staff? Well, it's said submitted by tina, but Yes, there was initially there was a uh staff report that was prepared and then subsequently Uh council member uh Cummings submitted the an additional report which is included in your packet and is listed on the agenda Um just because there was some miscommunication about whether we had the report or not But it was submitted and provided in the packet So essentially what this was a council, uh, there's a proposal put this forward and so I think I would turn it over to council member Cummings Okay, so it's by some of your Cummings. Do you want to present the item? Sure um Do you have any extra copies because I didn't get one No, that's that's an attachment, but um This was brought forward by a number of members in the community As we began to see new developments In the city parking come offline and shifts in modes of transportation members of the community brought forward a proposal Of ideas and justifications For the council and staff to consider on uh parking alternatives and uh transportation demand downtown And so what they brought forward was a study session would be Containing presentations by professor adam miller ball of the environmental studies department ucse Barrow emerson chief planner of the santa cruz metro Patrick seaman transportation and parking consultant and sibley simon president of newway homes Who's developed an innovative approach to? financing affordable housing Bringing forth this study session On march 19th at 7 p.m. And this study session would look at the impacts of parking and pricing downtown alternative commute incentives Parking requirement reforms and leveraging parking funds to develop more affordable housing Is that your presentation on the item? Okay. Um, are there any questions by council members? Okay, I have a question if this was community initiated Um, was it considered to have it as a community meeting that would be sponsored by the city as opposed to a study session? Because my understanding there's a different process for a study I think this would be considered as a study session Okay, so do you want to say more if I could ask our city manager to explain the study session process because I'm wondering if there's maybe an inconsistency with that Okay, sure. Sure. So, uh, if the question is how do we have how we how do we normally do study sessions? so Typically study sessions the the way they operated, you know, ever since I've been with the city Is typically they come at the request of the city council and typically they are The council says we want to study a particular topic or issue area and what they the council would do is to direct staff to Develop a study session and the council, you know identifies the topic the the issues the questions The things you'd like to explore the staff then works to put it together And and that might be with respect to collecting data information presenting the city perspectives Work that's been done policies. Uh, and then at times also if there's a need to get, uh, outside To do outreach and and to get information from different sectors the staff will do that too So that's the typical approach Where the council sets really the policy goals Or the objectives of what you'd like to understand and get more information about and then staff does the work of Getting it organized and getting together based on council direction So that's the typical approach for Creating study sessions that we've had historically in the city and most cities have it that way Just one more other thing I just wanted to point out too that uh, alex Clifford did send me a correspondence uh, regarding the the The best districts participation. I think he also sent it to the the representatives from the the metro on our council essentially Saying that he would He would uh, I'll read it I would I would like to respectfully request a view and the city council that the city identified city staff Member to participate in the study session instead of mr. Emerson And I think I think his perspective on it is he'd like to have uh, I think the city staff participated was Because I can that's typically also for other agencies the way study sessions are done So I think he'd just like to have that uh, typical process. I just wanted to communicate that as well council move around So when the motion was made to agendize this for consideration, I didn't um I didn't understand that to be um, you know, uh Declining to have study staff be involved in this. This was simply what I understand maybe um, vice mayor Cummings You can clarify that these were um Folks, you know outside experts that um, we would that at least some the majority of the council Said would would like to have um be present for that study session, but I didn't understand that to be precluding city staff preparing Uh a presentation as well, and I thought that was coming our way any way in that they might be That might be included so I just if you could Okay Okay Yeah, I Just a follow-up to I that I would welcome staff's participation in such a study session in fact because we want to hear various points of view Sorry, mr. Emerson, um is being pulled back because I think that he would present A very good interesting point of view. Um, also, you know, we staff is needed to put the whole thing together And I don't think anybody's saying no, um, we don't want staff participation. I think it's the opposite Okay, so Okay So why don't I go ahead and open it up to public comment or just a more comment? I'm sorry. I was just going based on the The the recommendation it was listed here And so I would just say that with respect to if there is an interest on council directing staff to put it together That I think we would need more time than march 19 to do that together to put it together Uh, so I just want to point that out as well If I can my understanding is that usually you there's a topic and then you build the The presentation around the topic you hope to understand more as opposed to having a Sorry, I just like the opportunity to go back and talk to staff about the timing and the scheduling and all of that We didn't really have that conversation I I understood that the proposal today was to To have a study session based on what was outlined here So and I know you'd have a discussion about this but in terms of the feedback I'd just like the opportunity to go back to to uh to staff and to Talk about the timing for it and we can get back to you I mean it looks like it's a in between Tuesday So we could you know schedule in between Tuesday and get back to you with a reasonable time frame as I understand there's no a particular Decision or action that has to have it by a particular time necessarily so um, I think given The workload and everything that we're working on particularly On some of these other issues we probably would need a little bit more time In regards to a community event This the city often sometimes can support those if that was the different route to take in terms of the oh, yeah Sure, alternatively. Yeah, so if uh, if a particular group wanted to and that happens all the time to uh sponsor work Some kind of workshop or some kind of session that's that's that's an alternative to and uh, you know, we can certainly participate in that as well Let's go ahead and open it up to public comment And then we'll return back to the council. Is any member of the community want to speak to us on item number 22? And you'll have two minutes Good evening council members brick londonati from the campaign for sustainable transportation Um, I just wanted to add uh, maybe part of this agenda for the study session The city has an ordinance that maybe you haven't heard about I didn't hear about it Uh, it's called the trip reduction ordinance And it asks employers to gather data about their employees Commute habits and as far as I know, it's never been enforced. So, um, that would be one thing for staff to to report about The purpose of that ordinance, you know, what what the uh What the prospects are of actually enforcing that uh, city of Santa Monica has a model Trip reduction ordinance and um, so I refer you to that Um, the there is a trade-off in in postponing it past March 19th Which is that the speakers that are identified there in the motion are available on march 19th. Um, So, uh, that would be ideal from that point of view Um Anyway, I'm very much looking forward to and I I think community will all learn from it. Thank you Hi council, at least casby here. Um, I I I don't think we have any time to waste on this. I understand, uh city manager martin Bernal's comments about wanting to Consult with city staff about their workload, which makes complete and total sense at the same time. Perhaps, um The study as it's being presented with staff being invited and not necessarily needing to do anything other than be present In that case it might be It might make sense to just ask staff to attend The reason I just want to stress this again is I just came from this conference that is, um Dealing with extinction, which is what we're going to I mean to say that this is a crisis is kind of and I it's an understatement. This hasn't happened in 252 million years and we need to inject a kind of sense of urgency and speed and Allowing ourselves to study up and I'm not sure what was just said about CEO Alex Clifford. Um, I think I may have heard that barrow emerson was pulled from attending which I find to be Just a shame. I'm not sure why that was if or even if I heard that correctly But I do want to say that I think that We have influences in the community that are working to abbreviate our bus routes and to cut bus Attendance and one of the main ways that they're doing that is by privatizing and encouraging riders to have to go with companies like uber And we need to get the come the public involved and to invite people into this discussion and have this happen as soon as possible This seems like an excellent opportunity. I just wanted to ask that you vote to have this study session on march 19 Thank you And I think it's a really good idea to invite and have the community involved In this sessions Another thing is I don't know what all the studying is about the studies in the past. They've been ongoing And putting it off We should be fast enough. Well, we don't have to put nothing off. Let's do it and We're in the work Put something off It just don't make sense to me So another thing is when If you're speaking a lot of things I cannot hear them say So I need to know what you're saying If you're going to speak I need to hear it so You know to get this Session this information going sooner rather than later is a brilliant great good idea You know, it's time to like just put in and go on and get the good work done. Get it get it going Thank you. Are there any additional members of the public who'd like to address us on this item? Okay Seeing none, I'll return it back to council First we'll have a council member mires and then I had a comment and then council member mathis and vice mayor comings Um, I guess my main comment is It's it's titled do it a transportation demand management study, but when I read the report there's a lot more in here than Um, just TDM so I think if we could also just I would request that the council members who Prepared or staff or Is just because it starts to talk about Using parking district funds for affordable housing So I just want to make sure the community's clear on what the session is about And it seems to be a little bit broader than the TDM Uh piece that is in it just in the subject. So I'm not I'm not saying I don't would want to talk about these things But I think if we can also revisit the the title and make sure we're grabbing the right staff so that we can I I I see a general trend in the in the report around Ending at housing and how do we leverage potentially some funds, but I just want to make sure that Uh The the community understands what the study session will be in totality So I'll just briefly say I if the march 19th date with the select speakers is the intention of the item Then I think having it as a sort of a community sponsored event makes more sense to me If the interest is having a study session on a specific topic with a diverse set of speakers and informed by Um input from the council and from staff Then I think a different approach would be more fitting personally. So that would just be my statement Um in regards to this item and then council member Yeah, I'm uh your suggestion if the um Citizen advocates who've put together this list want to put this on In the community It would be appropriate for staff to participate. Is that what you're saying would not be a city sponsored event It wouldn't be a city's much fits into the study session I I certainly understand the interest in The whole field of TDM. I think the motion The agenda item as it's been presented to us suffers from a lack of clarity and also is really Not right for action and also the In terms of a study session Puts an unrealistic demand in terms of timing and staff attention to do a good job on this as Was mentioned the topic is TDM transportation demand management study Session, but many of the items Contained in this report. We've already done. We did them at our last meeting. So The report seems to some extent already moot in some cases Again, there are some assertions that are presented as fact, which I think Well, again, that's that's a prerogative of the individuals that write the report I I really am much more interested in looking at a study session on Our downtown in general I guess there's a A little bit of a lack of clarity also Is this a TDM proposed as a TDM study session for downtown or as member of the public said A trip reduction ordinance which Pertains to the city generally. So what is the animal we're talking about? To my mind Council direction for a study session is is really primarily for the directive for the benefit of the council And of course the community Is fully invited and commissions are invited But it's typically been an opportunity for council members to get deep study on a big issue That informs our knowledge of the of the topic And I think in that respect Topics for study session, which do take It's it's certainly one more commitment on council members part But it's to do a good job takes a good deal of time thought An organization on the part of of staff time so And in that sense, I think we should give direction as a council on our priorities Would like to ask the city manager, when do we see Establishing our goals for the coming Time period Well, I think that's something that we want to Schedule as soon as possible We've talked about and historically what we've done is I'll try to speak more clearly historically what we've done is to Have when new councils are Elected is to do an initial session. That's a workshop on You know getting to know each other team building norms that sort of thing followed by workshops on Establishing the work plan in the strategic planning process. So we have to schedule those My sense is that councils interested in scheduling those as soon as possible And I and I would agree with that. So that's the other set of workshops that have to be Established to do that And I think the question is how does the council want to do that? So we've been working with the mayor and vice mayor to do that And just to add to that briefly is we've been talking also about other types of study sessions to explore in preparation for the budget hearings So there will be so that is already Underway in regards to the you know There's just limited time and resources. So I think the topics that we set aside for a study session should in fact Reflect a bigger picture of what what faces us and what we need to choose from and focus on Particularly since we've had To my experience so much attention on transportation Demand studies and the adjustment of the parking rates downtown and all the incentives that we just Voted on At our last meeting So I'm not sure that this needs to be a prior tdm needs to be a priority for The time and effort of a study session Personally I would favor a study session on the topic of what is our vision for downtown Broadly and how do we use our transportation? resources of all kinds to reinforce that vision and that vision should include a a healthy Business district it should include housing it should include visitors It should include civic spaces and civic activities all of these things And I don't think we've had that kind of a focus in a good long time for this city We're we're leaving out big swaths of the big picture. So That's personally what I would advocate for if we're going to do a study session, but I think The focus of this and the timing Is is not appropriate and Particularly to have a study session um Developed exclusively by an outside group without staff involvement Is problematical and I should also just say finally that one of the speakers I believe has what I would just call a tainted relationship with the city and I don't believe it'd be appropriate to include that speaker explicitly in the in the lineup of a city sponsored Program, which is why I think it's important to give more thought to to who what is the topic and who are the presenters? so I have vice mayor Cummings council member brown and then Glover and then mires, so I think one of the pieces is that um I don't want to underestimate the ability of members of the public to put together a well thought-out and well-developed presentation oftentimes Members of the public have only up to about four minutes to speak to city council members And I feel like what we're trying to do is provide an opportunity for A community group to actually have more time to provide a deeper presentation to the city council um, I do understand understand how Staff is under a lot of pressure right now They have a lot of demands and I think that this could be the first step in a broader conversation around this vision of downtown and how we can utilize our resources to To have a productive downtown environment Given the fact that there are speakers who've been preparing for this I would I think that it will be good if we give staff staff the time to develop, you know a presentation and a study session around downtown vision, but that we also Invite staff we invite our commissioners to come to this presentation That will be provided by members of our community so that we can get their perspective on This issue and allow staff the time available to come back Incorporate some of the ideas that maybe have come from that and some of the ideas have come from Community members and present them or incorporate them or not at that time Yeah, I um I agree with the vice mayor Cummings Comments and and I would just add that in the time that I've been on the council We have had multiple study sessions on a variety of topics those the Outside experts who have been invited have been exclusively determined by staff And I certainly have made recommendations about Folks that I thought might be good to participate in those study sessions. They have never been Included and so I don't see why just because this is not customary. It is not Something that the council ought to have some say in who the experts are who come to have a conversation with us I think it is a it's an opportunity to have some kind of thinking outside of the box get some new ideas We've done this at the regional transportation commission on multiple occasions related to our Our rail put, you know potential use of the rail corridor and it worked very well And we did not have You know any concerns expressed from the staff there at the time in fact they helped us organize it And so I I want to support moving ahead and like vice mayor Cummings said See this as a first step in you know, maybe getting generating some some new ideas and Incorporating those into future planning Thank you Yes, I would echo the support that council member round just said for vice mayor Cummings statement and for the idea of the Logic and in my opinion urgency around this. I also agree with some things that we heard from the community about the importance of Moving as expeditiously as possible into understanding transportation demand management and how we can better Move forward in the city to be as sustainable as possible I do want to point out that When it comes to tdm the the conversations have been going on For a while, but I do want to emphasize that there has been Some could say a shift in the focus potentially or in the Vision of council members on the body So to be able to all make sure that we're on the same page about transportation and have a study session with Community experts or community individuals that have a lot of knowledge around the issue I think is important as well and also just to reference the conversations around the parking fee adjustments That were mentioned before those were into my knowledge done with the understanding that there was going to be the need to offset a maintenance cost for the parking garage that was supposed to go in with the library. So with that Perspective and looking at how we can move things around so we can add additional cars if we're doing a new Study session that may change the decision of the city council on how we may be able to use that extra approximate 2.5 million that are generated from the Changed parking fees. So I think this is timely. I think it's important and I think that with a group of community-based individuals Just as similar to what council member brown said it should be a fantastic opportunity for us to learn and Nothing against staff and their decisions or their choices I'm sure that they're making the decisions and the what do they think are the best But I do think that it may be a good opportunity to try something new. Thanks Um I just Have a question. We were I'm not sure what this item is this I've read it and I don't really understand what it is I don't understand who wrote it Again, this is this is my struggle Um So and on the back of this sheet, which doesn't have any I don't know if it's a city document it says The last sentence on the last paragraphs first sentence on the last paragraph says metro believes in addition to Counted transit passes which reached to me like this should be coming from metro so I'm just uncomfortable with this kind of paperwork and then talking about Really important things about parking and how we how we're going to move through downtown And so I'm not I'm not going to support the item. I don't it's not that I don't want to talk about these items These are the most important things we should talk about as a city council But I don't this doesn't help me get there because I don't really understand What these pieces of paper are and they're unidentifiable? And I don't know who writes them. So that I I I think that there's more work to do March 19th is right around the corner And if this is sort of where we're at right now, I'm just not comfortable with moving forward on it. So so If appropriate, I can answer that question and if you look at the staff report The updated one that was provided That is a metro document If the staff report indicates see attachment, but we didn't get the attachment until Too late to include it in the packet. So it is an attachment related to Barrow emerson's Russian Who is now Has okay Okay But the staff just to be clear for the staff report was not a city staff report It was the council member just just to differentiate that too Also just to be completely, you know transparent here too staff does have a concern about You know in looking at the staff report Or the report the agenda report there We do have some concerns about some of the items that are in there. They're not exactly accurate And so again, that's the concern about Putting together a study session Without the staff working. I mean many of the of the workings with respect to the parking fund And its financial status and what can be it can be used for Is really something that you know, the staff would would be able to look at and explore and work with the city attorney on So anyway, I just have I just want to be clear I just have some concerns about that too and so if you are going to do a study session I think would just make sense to have it be well prepared well developed And then you have all the information that you need And so again, we're not against putting one together. I just think it would make sense to to have it be, you know coordinated With city staff and and we can work to do that as soon as possible Okay, so I'll just briefly make my comments and then I'll acknowledge council member crone and then council member lover Um, I I agree I think that if there's if this is the date and these are the folks then I think and it's a community initiated effort Then it makes sense to have it as a city sponsored community event And I think staff could participate in it and that would be the appropriate process for this In terms of the study session, I think that more needs to go into it So I don't feel comfortable scheduling it as a study session. I don't think it could necessarily Result in this not happening if it's just a community sponsored event It just wouldn't be necessarily qualifying what I think would make what I would hope our standard of a study session would be So council member crone council member lover and then We're okay I'm very much in support of the concept of a study session and um I don't know. I I agree with with council member. Matthews saying about a deep study of big issues and a vision for downtown I think that this would be part of that a vision for downtown and I think it does include housing and tdm and parking if that's part of tdm and and and um any sort of transportation issue Um I think that it we're running late here. We're running, you know, there's a whole, you know Global warming issue and we're we're not really keeping up and I think this study session Reflects that we are trying to do our best and Actually provide opportunities for people to get involved and implement ideas now To the extent that any of the um Named speakers are not able to participate What how will the decision be made to replace them or or restructure? Would that involve uh, I would hope If if this is going to be a city sponsored Event I would hope there would be staff involvement Let's I'll go ahead and go to council member clever and then there's not a motion on the floor at this point So with uh, just like a question about process if this is set up for the 19th and there's council direction to move on Scheduling it with some parameters. Is that would that not provide staff time to compile the information that they think Could be changed and then share that at the meeting to say this is what's going on Um, I I don't I don't believe so because I think we may you know, uh want to Because the question comes up. Well, who else should we include? I mean, there's certain perspectives Again, it depends on the scope. So for example If you want to talk about housing, well, we might want to include some housing developers Our nonprofit housing fellas if you want to talk about the downtown and that might affect downtown businesses Well, we might want to include downtown businesses And so there's a bit of of outreach that has to be done The list that's here doesn't include everybody that might be impacted by these programs And so if you want to be inclusive of all of these other groups, we might want to extend I will go ahead and you might want to extend Sorry, excuse me. This is now the go ahead. I'm going to go ahead and say the community This is now a time for the council to deliberate and there's not a time for the for public comment So we've closed public comment. So please keep your voices down That's a warning if you decide to continue to talk, I'll ask that you Be escorted out So you've been warned to not disrupt the meeting and if you continue to disrupt the meeting You'll be asked to leave. Okay, please go ahead. So I was gonna say we might want to extend an invitation And so again, depending on their availability, you need a little bit of lead time because you have to find out when people are available And I mean, I think much much like this was done But again to to be to have it include other Components just requires time to get it ready. So that's come. I can't I can't tell you for sure that we can have it ready by March 9th We can work to get it prepared as soon as possible And we'll do our best to get it done as soon as possible and come up with a date and report back to you So again, I don't want to Commit to something that we can't you know meet and have unreasonable expectations and then just okay. We'll go ahead and first of all I think it was that there was a follow-up to that though I hear you have a follow-up question. We'll go ahead. There was somebody who wanted to be acknowledged on this Matthews No, okay, go ahead With the Time frame because I know the vice mayor Cummings brought this forward at the last meeting So it's been two weeks since the last meeting has there been any preemptive kind of exploration into Finding people that staff might be interested in to come with like some options or to say Hey staff would like to bring these to the table or have we start in a ground zero? I think other than obviously we weren't sure what the council was going to to direct. I think other than Uh Discussing the fact that it would be helpful to have you know a variety of input Uh in general, uh, but no we haven't necessarily. I don't at least I'm not aware of that You know particular individuals or groups have been identified Again, you know, we didn't want to predetermine exactly what the council was going to direct Um, but and then again, again, there's no as far as I'm aware. There's just no particular urgency to This particular topic at this time as far as any sort of council action has to happen So that's the other consideration. Okay. Thank you You're okay. So now would be the time for action and deliberation or If anybody wants to make a motion I can't I'm gonna make the motion to um Since barrel emerson can't come from the metro to remove that portion of this Um In direct that we bring adam miller ball patrick siegman silly simon To present on Issues related to downtown development and the vision of downtown around parking pricing downtown parking parking reform Reform of parking requirements. I apologize And leveraging affordable housing as the first Study session with regards to Our vision of downtown brought forth by members of the santa cruz community I'm a second that as a friendly amendment could we have the city manager get back to mr. Clifford and ask him to reconsider that Barrow emerson join us. Yes. I'm also going to add that we invite members of staff to also present and Also invent members of the planning commission downtown commission Transportation and public works commission to attend the study session In addition with Two of the santa cruz community. Okay, so we have a motion by council member I mean vice mayor coming second by council member crown any further discussion. Yeah, I just wanted I will add that based on personal conversation. I understand that sibley simon is Not interested in participating at this point. I don't know if he's communicated that to others And again, I want to reiterate my opposition to paying someone to come and participate Who has a contentious relationship with city staff? I don't think that's productive. Okay, and council member gliver So it's my understanding that Mr. Simon isn't coming because he has other projects that he's working on and doesn't want to risk Advice of decision-making which is unfortunate that people are having to decide which issues they're going to advocate for The second thing Along with that is it's the second time that we've heard That someone has a bad relationship with the city, but there's been no Like I have no idea who or what you're talking about. So it's pretty vague And so I can't make a decision based off of Something I have no context so, um Okay Nice mayor comes if the information is correct that Um Sibley simon is not available To make this meeting Does it has anybody had oh can I ask a question of other council members because it sounds like other members of the Council have had conversations with Sibley simon. I just want to verify whether or not this is correct So I'll direct that at council member gliver um, I'm trying I'll try to find the Correspondence right now. It was updated that uh I got a message saying that he had pulled out because of the concern of this being Device of and could damage a conversation around housing that he's working on with his housing project. So okay, okay, so at this time we have a motion and a second and um Call the question for the question call the question. Okay. All those in favor. Please say aye. Hi Any opposed no, no, so that passes with council member brown vice mayor Cummings council member crone and council member Glover voting in support council member matthews council member mires and myself voting against Okay, so we have an additional item and that is the second reading of the Ordinance And we'll have a brief presentation followed by Uh, okay, you could go ahead and leave. Thank you very much. You could go ahead and leave now. You've been warned and thank you Okay Okay, so at this time do we not have a presentation Okay, so just right now we have the second reading and if there's not any questions we'll go ahead and open it up to Public comment and then return for action and deliberation Any questions at this time? Is there any member of the public who wants to speak to us on item number 23? Which is the second reading and final adoption of the ordinance related to the accessory dwelling units I'll have two two minutes. Hi everybody. My name is maryl luen. I came in here the last time and I'm just Wanting to thank everybody for considering this. I'm really happy that this looks like it's going to pass I think it might really help with People who want to build accessory dwelling units because it's so expensive to do it This would be a real boon and I thank you for your consideration And I want to invite everybody when my unit is done to come over and see it I'm very proud of it. Maybe in another month or so it'll be finished I'll let everybody know so just wanted to say that. Thank you everybody Thank you Unless there are any other additional members of the public who would like to address this on Second reading of the adu ordinance We'll be given two minutes. My name is Dave Willis. I just want to say Thanks a lot for all of y'all's work on all of these issues, especially this one right here also So thanks a lot and um Good work Okay, thank you Okay, so we'll go ahead and close public comment and return back for action into liberation I'll move to the second reading and adoption of the ordinances before us I'll second that any further discussion All the motion by council member matthew seconded by myself all those in favor, please say I I any opposed Okay, that passes unanimously Okay, so we have one more item and that's the meeting calendar And at clerk are there any updates to the meeting calendar? No nothing council member or lover Yeah, so some of us may be aware there was a raid by dhs homeland security ice here in santa cruz last week Or week and a half ago. There has been very little Community engagement around it, especially from the side of the city and I as well as some of the fellow council members Were able to go and meet with the neighbors that were impacted by the raid as well as the member of the family who Was detained and in my personal opinion terrorized by the Federal agents that came into our community So I think it's important that we really assess where we're coming from as a sanctuary city policies that we may need to put in place statements that we might need to write and also The structuring of a community conversation that includes not just the city council, but also Representative from the police chief the sheriff's department the sanctuary movement immigration and attorneys as well as other members of the community Like the neighbors, so I'd like to see that on the next agenda on march 12 I make that motion to have all that So there's a motion by council member lovers seconded by council member brown brown any further discussion Just what's the nature of the motion? to agenda to agendize the topic of the ice raid and Potential actions in response not limited to but including potential policies community conversations and letters slash responses to the federal government If I could just with respect because I think there are two Kind of tracks here one of them would be action that the council will take might take with respect to Recommendations or expressions of concern to Other jurisdictions and representatives As well as potential policy options and then the community conversation and and so We have it as one motion, but I think that that that's a discussion We just want to clarify that that is the discussion we'd like to That I certainly would like to have agendize so that we can set Um The date for some kind of community conversation in addition to the other I just have a question Are you anticipating that you would you're you're asking or you're asking the motion to have it on the agenda But you would write the agenda report. Is that what you're anticipating or you would have staff write the agenda report We can write the agenda report and my staff wants so we could all write it together Yeah, yeah council member There have been community conversations In the somewhat recent past involving a great number of community groups Do you know if there's anything else going on that would be not just the city of santa cruz But a broader community conversation that we might plug into So i'm not sure about anything that might be actively happening anywhere else in the county to address this because it happened specifically in the city of santa cruz I do know that the sheriff's department was in direct cooperation with the raid and um According to testimony Uh Provided the interrogation rooms So there's the question of the sheriff's county wide involvement as well as the county's participation with ice But I don't So but I think that we need to move forward as a city expeditiously to have the conversation with our residents and community And then if representatives from the county or the sheriff want to join in on that then that's great But I don't think we should be waiting for other people to lead the charge I'll just say add and then I'll acknowledge you there's there is a group that meets on an as needed basis to address any types of issues related to Immigration and that's being facilitated out of the city of watsonville and we've connected with them in the past So if anything I think that would be the place to check I think that's in the whole sanctuary community group Okay, councilmember brown I'm trying to be careful here of not getting too far into the substance of a discussion about this because this is not an Actual agenda item. Thank you But, you know, we had a conversation with neighbors and and there are Folks who are really, you know anxious for the city to take a leadership role here I certainly we can partner with other Groups, but I think that's a conversation that we need to have when this is agendized and it's it's it's notified So I'll just if I could reiterate there's a motion to modify or to make a specific attachment for the meeting calendar to agendize on march 12 This topic is that correct? Yeah with the with the actionable item of council action to write letters or send statements to bodies discussion of potential policies locally and also The establishment of a community conversation Correct, great, and I'd like to call that to questions so that we can move forward Okay, so there's a motion It's been called all those in favor. Please say aye. Aye. Any opposed? No If I could make a follow-up comment, I would like to ask that as the Any material being prepared for this be given to appropriate staff whether it's city attorney Police department, whatever that they have time to give it a legitimate review. I mean, it's a short turnaround time already to get on the agenda so And that maybe some things could be anticipated for action at that meeting and others deferred for more thought So that will conclude the uh afternoon session Just wanted to bring back Vice mayor coming. Well, I'll bring back later Okay, so that then concludes the afternoon session and we will adjourn and tell our 7 p.m. Oral communications Should I know my best behavior? Yeah, I think so Bonnie, are we good? Okay Okay, good evening everybody Good evening. Good evening. If I could get your attention, we're going to go ahead and get started Okay, thank you. Good evening everybody. Thank you I realize we have a very large crowd this evening and I appreciate your patience as we get started At this time, I'd like to welcome you to our 7 p.m. Session of the february 26 2019 meeting of city council and I'd like to ask our clerk to please call the roll Thank you mayor council member crone Here lever here my ears Here brown here Matthews here vice mayor coming here and mayor Watkins here Before we get started I want to announce that we have set aside overflow seating capacity in the civic and the tony hill room So right now we're about to begin our oral communications And then after oral communications concludes we'll move on to our 7 30 item And for those who are outside or unable to get a seat. We do have room at the tony hill room Before we also get started. I'd like to briefly go over our council principles and And ask that as we all are here to Participate in this process that we respect one another That we engage in open and honest communication That we be truthful and honest and address difficult issues We seek to find areas of common ground be open to different perspectives Give the benefit of the doubt to role model good leadership and to be considered of each other's time So I will now Ask our fire chief to please as maybe say a few things about some of the considerations for capacity here Thank you mayor and council So for everyone who's here inside the chambers. We have an occupant load of 114 people I think we may be at that or a little bit above that and I'd ask that everyone who's outside to please respect the The orders of the fire marshal that we have the deputy fire marshal and the police officers We're not trying to limit anyone's speech. We just want to make sure that we don't have an incident where people are crushed or pushed Because we have too many people here Like the mayor said, we do have overflow at the tony hill room And we will line up people for comments when we get to that part of the meeting So I would ask that we all respect each other and that we get through this night together And that we do have a lot of people here. So um, thank you. Thank you Okay so it's my job to Ensure that decorum is met while in the chambers and to ensure that we're respectful for one another and that we Follow the processes To ensure that the night and the process can can can continue in a way that has Some order and and folks can feel safe to come and speak to us So that said I want to just let you know that if there's disruption and I and I am able to identify Who is disruptive in the audience? You will be given one morning if there's continued disruption Then I will ask that you leave the council chambers Everyone has a right to speak to us whether or not we agree with each other's opinions They have a right to without fear or intimidation to express their feelings to us So at this point as mentioned, we're now Going to begin our ora