Welcome to today's city council meeting and Madam city clerk if we have an announcement of the roll call Let the record show that all council members are present with the exception of council member oliveris. Thank you Madam city attorney announcement or report on the closed session. I Excuse me. Yes council met today in closed session on item 2.1 and gave direction to staff. Great. Thank you We've done a proclamations Mr.. Sir you have 6.1. Thank you miss Sonoma County outstanding team, and it's a pleasure to present this proclamation This chin Please come down. I'll read it, and then I'd love to have you make a few comments to us Whereas image and residents of Santa Rosa is recognized for achieving the distinguished title of 2019 miss Sonoma County's Outstanding team and whereas at 15 years of age and a freshman and Maria Carillo High School Em has already proven herself to be an incredible young lady attaining a top 1% placement academically in her class with a 4.83 GPA Earning membership in the California Scholarship Federation while taking all honors classes and also serving as captain of her math team Earning her first place in math counts competition Santa Rosa's National Arts Program Exhibit and best of show with her art exhibit at Sonoma County fair All while as an accomplished pianist playing since the age of three And whereas miss jen has used her title of miss Sonoma County's outstanding team in further promoting careers to young women in the fields of science technology engineering arts and math Thus helping them realize their full potential as a member of our society and encouraging them to pursue all interests while understanding the importance of never establishing gender roles and whereas as miss Sonoma County's Miss Sonoma County's outstanding team She will be representing our fine city of Santa Rosa and Sonoma County at numerous local gatherings that have been during her year of service Along with competing for the coveted title of Miss California's outstanding team this coming June and possibly Miss America's Outstanding team in July now therefore we've resolved that Tom Schwedhelm mayor of the city Santa Rosa on behalf of the entire city council congratulate Emma Chen Chen as 2019 Miss Sonoma County's Outstanding team signed by the mayor on this date congratulations before you make your comments I was fortunate enough to be able to be on the panel that selected you and This young lady was so impressive during the interviews But then when the talent portion she started playing the piano and I wish there was one here because it's draw dropping But was interesting for me. That was on a Saturday on the Sunday I participate with Santa Rosa's natural National arts program exhibit and I saw Emma there and I didn't know why until we gave the grand prize winner is one of her paintings Which again the talent in this young lady representing Santa Rosa is incredible I cannot wait to see what the future holds for you Emma. So please share with us some comments Thank you. Thank you so much councilmember Sawyer for recognizing me here today and Mayor Schwedhelm for your kind words I am so honored to be representing Santa Rosa and Sonoma County as Miss Sonoma County's Outstanding team and At Fresno next week when I compete for the title of Miss, California's Outstanding team If I come back and continue with this title I'm really looking forward to continuing my year of service until March and Also, I'd like to give a big. Thank you to you Mayor Schwedhelm for being on the judging panel and a large reason of the reason I'm here today is because of you. Thank you Congratulations again Emma. All right, Adam 6.2. It's always nice when we see big checks down in the council chamber. So Tara are you Here's something there you are. Hi. Good afternoon Mayor Schwedhelm and members of the council I'm really happy to be here today and really I'm just here to present a couple members of the Rotary Club of San Rosa West Followed by another club both who have generously donated to the public art project at Coffee Neighborhood Park I'm sure you were aware that we are incorporating public art into that park and the budget Was a small modestly small amount Allocated from the public art fund and we were approached by these clubs To bring that up to a substantial amount. We're really looking forward to seeing what art is going to be installed in the park Through a process that's ongoing Hopefully we'll have a final design sometime this summer, but today I'm here really to be very very grateful and Show my gratitude towards David McDonald representing the San Rosa West Club and he has a check to present And then we'll do the second club after that So on behalf of the Rotary Club of San Rosa West We wanted to present the city with a check for ten thousand dollars toward the art project on Further Coffee Park and for the kids, so Do I who do I hand it to who wants to check? Unless it fits into the ATM. Would you like a photo for the club? I Actually have a real check, too. So great. Why don't we come down? We'll get a photo for that. Sure. Give back the club.  Yeah, wait. Don't sit down yet So In addition to the Rotary of San Rosa West we have a group representing the Rotary International District 51 30 Sonoma County Fire Relief Fund and I believe all of them are going to come up We have Barbara Spangler, Doug Johnson, Chris Rainey, Jack, Blascoe and Jose Gillian. So Please come on up. So good afternoon I do have the one that fits in the ATM We do have that. Thank you. And on behalf of Rotary District 51 30 Which represents all of the Rotary Clubs from Petaluma to the Oregon Board 47 clubs our fire relief fund collected more than two million dollars in Any aggregate and this fifty thousand dollars is for the art project And we wish you the very very best with that. Thank you, you know for both the clubs I just want to really extend my thanks being from Northwest Santa Rosa how important this is to our recovery efforts and seeing it's another Example of neighbors helping neighbors. It's a wonderful community. So thank you so much for that But wait, there's more one more pock nation. I think miss combs. You have this amateur radio week Thank you. It's my honor and I'm I'm wearing my tag with my call number on it call sign Whereas amateur oh come on down Darryl Paul Iola Beckley Fred Cedele and Philip Humes, and I may have said the names wrong Iola Betel Beckley Fred Fred Seidl And Philip Humes Thank you for coming down Whereas amateur radio operators are celebrating over a century of the wonder of the human voice broadcast over the airways and Whereas amateur radio has continued to provide a bridge between people societies and countries creating friendships and sharing ideas And whereas amateur radio operators have also provided Countless hours of community services in emergencies and to other local organizations throughout these decades Whereas these any amateur radio services are provided wholly uncompensated and whereas the state also recognizes the service of amateur radios people also provide to our many emergency response organizations including Sonoma County's ACS and Whereas these same individuals have further demonstrated their value in public assistance by providing free radio Communications for local parades by cathons walk-a-thons fairs and other public charitable events And whereas the state of California in the city of Santa Rosa Recognizes and appreciates the diligence of these hams who also serve as weather spotters in the skyworn program of the US Government Weather Bureau and whereas amateur radio once again proved its undisputed relevance in the modern world in 2005 by providing emergency communications when other systems had failed in the devastation of Hurricanes Katrina and Rita in the United States and the tsunami Catastrophe Catastrophe overseas and whereas amateur radio provided radio support during our own 2017 wildfires and the flooding of 2019 I made personal use of that information Whereas the amateur radio relay league is the leading organization for amateur radio in the USA and whereas the ARRL amateur Radio field day exercise will take place on June 22nd 23rd 2019 and is a 24-hour emergency preparedness exercise and Demonstration of radio amateur skills and readiness to provide self-supporting communications without further infrastructure being required and Whereas Sonoma County radio amateurs is now celebrating 80 years of service To Santa Rosa now therefore be it resolved that Tom Schwedhelm mayor of the city of Santa Rosa on behalf of the entire city Council does hereby proclaim June 17th through 23rd 2019 as Amateur radio week. Thank you You want to say a few words, please? Sure. Well I'm Fred the vice president of the Sonoma County radio amateurs and on behalf of that group I thank you very much for this recognition. It's a great honor And I would encourage anyone who has think they might have an interest in amateur radio to go ahead and contact our group and Certainly come out this weekend to the youth community park and see what amateur radio is all about So we look forward to continuing Providing public service to this community. Thank you very much. Thank you And I must say I got started by an initial visit to youth community park to this field day event and also want to point out one of our own City staff members Eric McHenry who also takes part in the amateur radio?  I just have a brief update to share with council There has been a significant change in the power safety shutoff program For the state of California with a recent PUC determination and instruction to utilities We the staff was working closely with PG&E last year The impacts in last year's events would been to the to the city potentially minor This has changed with the new piece PUC direction As I as I communicated to council earlier today More information is to follow but the staff is hard at work As a lot of municipal and county agencies are especially in northern, California Preparing for an eventual power safety shutoff as we move more and more into the fire season You will get some details about this. We are looking at our challenges both operationally and Resource and we will probably be moving on acquiring Equipment to help us and revising our work plans. It's going to take a significant effort because the impact areas are are are are wide reaching in northern, California and Not only the impact could be on us But we may be actually asked to provide support for other areas that could be potentially impacted as well so there is a lot more to come on this issue and You will be hearing more about it over the next couple of weeks as we as we prepare and we Address what we need to do operationally in moving forward and that's the only Topic I have this evening Great if I could counsel any questions for the city manager on that report See them. Thank you All right city manager city attorneys report who would like to go first I have nothing to report.  City manager man city attorney? Yes, I did want to Follow up on an announcement that was issued a little earlier today that the city of Santa Rosa together with county of Sonoma and Seven other counties and cities we announced today that those jurisdictions those nine jurisdictions and PG knee have Accepted a mediators proposed settlement of $415 million collectively to resolve the collective claims of those entities with respect to the 2017 North Bay wildfires the collective $415 million will be allocated among the nine entities In an allocation process Collaborative allocation process that is yet to take place or be completed And I will emphasize that the that this settlement does not impact the claims of any residents individuals or businesses Those claims still remain active in the bankruptcy court. I also want to note that that Payment is subject to Approval by the bankruptcy court the payment will be incorporated into a comprehensive Plan of reorganization that will be filed by PG and E in the bankruptcy court and that entire plan of reorganization Will be subject to the bankruptcy court's approval I will also note that in addition to this settlement of the North Bay Fires as part of a broader series of settlements that have been reached Totalling $1 billion to be paid to local governmental agencies in connection with the 2015 Butte fire the 2017 North Bay fires and the 2018 camp and Paradise fires and again, we have issued a press release and We will go from there Again still subject to bankruptcy approval We expect that process will not be completed until some time in 2020, but this is a big first step for us Okay, thank you counsel any questions for our city attorney Thank you for that report Okay on to statements of his stature by council members Mr. Oberty Yeah, I think We need to talk about a few things that the general public may not be aware of as they relate to this settlement and specifically the structure of Jack timmett's financial relationship to skikikos and Crawford the law firm that is suing PG and E Over the fires he personally accepted $100,000 in donations a few years back Or at least a political action committee called Santa Rosas for a strong recovery a political committee headed by Jack Tibbets You know getting $100,000 in donations from the law firm suing PG and E is called a financial interest Um, it's a pretty significant financial interest I think that it's the financial interest that somebody in a position to influence the decisions of people who are Investigating the causes of the fires You know should probably think about should probably not accept If you're in a position If the people investigating the fires have to answer to you And you're getting $100,000 from the law firm that's suing PG and E Not only that if you're on the board of directors to the only competitor Uh to PG and E, right? Uh, sinoma clean power Um, you have a very significant financial interest In PG and E being blamed for these fires Right one that illegally affects Uh Your ability to make you should not be in a position to make those decisions We shouldn't be making a decision based on what you stand to gain From PG and E being blamed on those for those fires We should be making a decision about what caused those fires based on what caused those fires Right and whether or not you used your position To influence the outcomes of the investigation. It's not an issue What is it issue is that you had a very significant financial interest in using your position to do that Um one that obstructs us from knowing whether or not PG and E caused those fires Right now. I'm not a big fan of PG and E. I personally don't care about them as a company I care about what started those fires I care about the people that suffered from those fires Uh getting an honest answer Right and and I care about their people's houses not being burned down This is a this is a ridiculous way to manage these fire recovery efforts And it's absolutely nothing to do with what caused the fires It has absolutely nothing to do with what's good for the future Right to ensuring that fires won't be caused again Um and it has absolutely nothing to do with the people that you were supposed to serve and has everything to do with the acceptance of money Uh from a law firm who's suing PG and E Incidentally the rate that Sonoma clean power charges for its energy is tied to legal fees That they are working together with counsel from PG and E. Do we have any other cards on this item? If I could just get some clarification um as members in the audience understand many people say many things to Folks in the chamber and on television and sometimes I feel compelled just to clarify the information So no one leads here with um a misunderstanding Can you talk about the law firm that is representing our interests in the litigation that you just reported? Certainly, um, we are working our office and other public Attorney offices have worked very closely with the law firm of baron and bud Baron and bud has been representing us in these proceedings And we'll continue to do so through uh through the bankruptcy process Great. Thank you so much for that clarification Please I'd like to ask a clarifying question also um, I heard $415 million and Was thinking that that went to a collective group Yes, that is correct and the $415 million Is a global payment to all of the nine public entities that were affected by the 2017 wildfires City of san rosa and sonoma county are just two of those nine public entities When will we know what our allocation of that? 415 is The allocation process is just beginning and we'll take some time We do not anticipate that we will have a formal Allocation among the nine entities probably until late summer early fall. Thank you Okay on to statements of abstention by council members. Are there any? Seeing none mayors and council members reports who would like to start us Mr. Vice mayor Just a couple of quick ones uh both on the same theme Last week we did have our first Climate action subcommittee meeting myself the mayor and council member combs sat on that and it was a Packed house more people than I actually are at the council meeting right now and It rivaled how many folks we usually have at the cannabis subcommittee So it was good to see such a strong interest from folks on that I also had the league of cities quarterly meeting for the statewide environmental quality committee In sacramento We had two significant presentations one from cal recycle On the state's efforts to invest in recycling Infrastructure which quite frankly we don't have enough of As well as a presentation from cal oes the office of emergency services that we have all become very familiar with To really walk through for council members from around the state how to interact with cal oes both before And during and after a significant emergency So two good presentations on their front Great. Thank you, miss combs Thank you, and that was a good meeting um, I'm Would just like to announce my appointment for by civil and pedestrian advisory board of charlotte brilogue I want to thank the individuals who applied for the position it was a difficult decision and I would say that everyone who applied would be qualified to serve our city in some form So thank you for your applications and congratulations to charlotte Thank you. You know the reports. I've got a couple reports on one on item 10.1.8 the ground water sustainability agency The agency did have its meeting. I think it was last week and we did come up with a fee structure And for the city of san rosa who's anticipated to use Approximately Almost 1600 acre feet of water which is nine percent of the basin's use That would cost it will be costing san rosa water $31,800 that'll have no impact Our virtually very minor impact to the rate pairs of san rosa san rosa water has absorbed that Into their budget and just for the other charges per acre foot For residential groundwater. So there's a fee for residential Rural residential groundwater users That would be nine dollars 95 cents Rural residential groundwater users when you have two residents per parcel that'd be $14.93 And if you have three or more residents $19.90 And for urban residential groundwater users that would be a san rosa resident that gets their normal drinking water from san rosa water But they use groundwater to irrigate their property. There would be a fee $1.99 So again, this is the fee structure that the gsa will be using for the next three years till we come up with a Groundwater sustainability plan and we'll have a lot more information as the plan progresses But that was a big step many I really do appreciate san rosa water and jennifer burk and her staff who have been Working collaboratively with san rosa water to help this agency come to that decision And then we also had as the vice mayor mentioned our first climate action subcommittee on june 11th There was a robust discussion on our all electric ready ordinance and our reach code alternatives After hearing the presentation a number of public comments the subcommittee on a two to one vote gave direction to staff to move forward with the creation of an all electric Reach code now this differs from our city council tier one priority goal of an all electric ready ordinance and when staff came to city council That draft document was going to be due to us by october 31st of 19 with this change where the recommended change Staff will be coming back to the entire council to see if the entire council agrees with Going to from an all electric ready ordinance to an all electric Reach code and I'll let staff explain that at the appropriate time And that'll be a very near future meeting because a lot of steps as we as we as we've talked Each of them impacts other Other activities that we set our priorities So but the recommendation was to go to the all electric reach code staff will be coming back to get full council consensus on that And with that we'll move to item 10.2 And I'm not exactly who we received a Draft letter mr. City manager. We just having a discussion amongst ourselves. There's no presentation. There's no presentation It's just a discussion about whether you want to support A assembly bill 857. Okay, so we have several cards here. Is there any council member who'd like to make any comments prior to accepting Public comment on this item Okay, and we will have an opportunity after hearing public comment So our first speaker would be shelly browning followed by george uberte Hello, everybody Like to thank you. Um, mayor schwedhelm council members for Jack Tibbets for recommending this get agendized julie for seconding seconding it and for those of you that have Discussed students with us on public banking to get further educated Though this bill has passed the assembly it will go on to the senate banking committee tomorrow Um, it just to give you a few points on what this bill is about and what it will do It would allow for local governments to apply for a banking charter from the department of business oversight It would allow cities and counties in california to recapture public dollars and reinvest them in our local communities The bill states that whenever possible any retail services of a public bank would be conducted in partnership with local banks and credit unions To extend credit to the communities Public banks would provide cities and counties and jpa's the opportunities to build a socially and environmentally responsible banking system The bill states that public banks shall identify within their articles and incorporation Either a social purpose or a specific benefit Sorry specific public benefit Examples of a social purpose or a specific public benefit include but are not limited to Strengthening local economies Supporting community economic development addressing infrastructure and housing needs for localities And providing banking services to un unbanked or underbanked A yes vote would not commit the city to establishing a public bank nor would it cost the city any money Cal in california 10 cities and counties have already endorsed this bill including los angeles san diego long beach oakland richman berkeley huntington park urica and the cities of counties of san francisco and sanacruz The city of san erosa currently has 34 million 84 $849,000 invested in the biggest banks that are financing the fossil fuel industry This comes from the uh march investment report from the city and this represents 8.6 of the city's total investments A public bank in this region would offer us opportunity to divest from those banks And invest in the needs of our local community with our dollars And I hope that san erosa will be the next city to endorse av857. Thank you Thank you, george beraty followed by judiff yam Shelly browning ladies and gentlemen The woman that first turned me on uh to public banking. I mean, I feel like this is a layup I want to say uh that in addition to uh providing our endorsement of this which I think the the people of san erosa are pretty unequivocally In support of this uh as a motion I just want to say that you know, I think in addition to instead of just jumping on a bandwagon This is an opportunity for us to lead the charge right now, I I think that um Outside of the many provisions of a public bank that that shelly outline very beautifully for you all I think that it's important to note that we already have Uh financial institutions, uh within the city of san erosa and within the county of sonoma that essentially Function almost exactly like a public bank would just without the accountability or public investment elements of it specifically the treasury investment pool Uh, right the the treasury investment pool is where we take, uh, you know city monies county monies Um, and we invest them right we pool them together and we I mean, it's it's almost everything you'd want a public bank to do Except just not for us Right, it just just not Oriented toward our community or with the mindset of you know, hey listen, we took these tax dollars from these people Let's invest backward in our community Well, all we would have to do is take something that we already have in place Right financial institutions that I understand that you know, you all are the city in the county treasury investment pool is different Uh entity, but it's not like your hands are utterly tied here You're in a position that's much better than the position that I'm in to spearhead a movement to say hey listen Let's put some stipulations on the financial practices that we already have in place Let's take something that we have like the treasury investment pool, right? Let's change it barely Right, let's change it just so it does what it already is supposed to do Right, which is take tax dollars are supposed to benefit the people you take them from right? When I we're not supposed to take a loss on the tax dollars we hand over to you. All right, so let's just let's barely Barely try To sort of pretend like we're doing something for the people of this city. We can do it It's almost there right now. We now right here. This is something that can be done at the state level That's far away from where we're at Right, it's far away from where we're at we can we can lead on this Okay, that's what that's what a democracy is. We've said we want it We don't have to wait for the big boys to tell us it's okay, right? This is our money We've already made a decision with it, right? We can change our minds. That's what democracy is about All right, so let's let's do what we want Right and what we want is to see a return on our investment Right, what we want what the people of santa rosa want is for the money that was taken from us To come back to us to benefit our community to progress our society Right, we've already got the financial institutions. We wouldn't be creating them out of thin air. This is not a dream This is a reality that's already there and all we have to do is reach out and pick it up Change one thing and the money comes back to us the way it was supposed to Thank you Judith ian followed by tom amato Thanks, it's actually i am public banking is Is something that where its time has come people are are well awake to the practices of the large banks and Have called them banksters for a good reason It's important to note that public banks won't compete with our local banks, but will cooperate with them It'll also help divest from fossil fuel and other industries that we're wanting to get away from The primary dictum will rather than pure profits, which is what banks are all about will be the good of the people They'll be accounting to taxpayers and not the shareholders the private people whose Pockets have been filled for centuries because of the the practices of the banks Perhaps even the amount of interest can be lowered to allow For largesse in these times for people who need it So with towns daily we get news that more and more people are waking up and councils And boards are voting in favor whether they're cities towns or states They're exploring and beginning to establish public banks It's also good to know that the only state that has had one north dakota is the one that had has not fallen into A red budget, but it has reported profits The state itself is doing well and it's no coincidence that it's the only state With a public bank for the last century or more So it seems that the only people who would be against public banking would be the private bankers So I highly endorse your supporting public banking By supporting this bill and then establishing it locally so that we can use it as well Thanks Thank you Tom amato followed by philip beard Yeah, i'm tom amato. I'm chair of the oakmine democratic club Two weeks ago our club voted our board voting unanimously to support ab 857 And there were several reasons we chose to do that and we would encourage The city council to do the same thing and to Support support that bill first as it sets up a process by look where by which local governments can create public banks So it allows those local decisions to happen In an easier manner it also sets up oversight For accountability when those banks are set up And public oversight obviously is critical in this type of operation I will point out often that with private banks we do not have that same oversight And Often they are not the best-run operations We are pleased that the city has has a climate action plan And has gotten together its subcommittee on the climate action plan And it seems like this is an important And actually not that difficult a step for the city council to take Because it's important that we begin to disinvest any funds that we have in banks or other institutions That are not operating in a manner that reduces The threat to our planet so we would encourage the city to Um support this We also point out that this is actually not a decision obviously to form a bank It's just to back state legislation that would make it more Likely that local municipalities could make that decision for themselves So it creates more authority really at the local level, which is a good thing So again, uh, thank you and uh, we hope you make a good decision Thank you, philip beard Hi, i'm philip beard from the friends of public banking santa rosa I have little to add to the eloquent testimony that has been given by the preceding speakers, but I would just Add my my appreciation to you the the city council for your willingness to Have a An in-depth look at this question of what public banks are how they operate and how the city and The whole north bay region could benefit if we had a public bank at our disposal rather than having to rely on criminal mega banks Who are the only ones big enough currently to? Accept the the deposits of the city like santa rosa or the county of sonoma We need to move away from that model. It hasn't worked what has worked Uh dramatically in the state of north dakota has been the bank of north dakota And there are many aspects of how that bank is structured and run that would be applicable to The decision as to what kind of public bank we in santa rosa or in sonoma county or in the whole North coast region would ultimately want to apply for a license for which is what the ab 857 would give us the opportunity to do so. Thank you very much for having a look at it and I Look forward to your your positive support and continuing to spread the word As far and wide as you can manage to make this a an exemplary Piece of legislation that will be copied in other states and with the ultimate Uh goal and benefit of Bringing into existence public banks all over the united states. They will serve our society very very well, and i'm thank i thank you very much for Considering adding your endorsement to the effort. Thank you. Thank you. Anne sealy Good afternoon, mayor and council. Anne sealy speaking for concerned citizens for santa rosa. This is a much bigger Question than with what i want to mention But i asked that the council discuss one likely outcome of the appearance of public banking And that is the potentiation of cannabis growing and Growing and sales sites in santa rosa I suspect that this potentiation is a major factor in support For the concept Thank you Thank you. All right bring it back to council and i would uh entertain a motion if anyone would like to make such motion Mr. Tibbets Thank you. Uh, so i i move to support assembly bill 857 And i have i guess authorized mayor schwedhelm to send a letter to sacramento And is there a second to that motion? I second that motion and it would like to make a comment when i'm able Okay, so a motion is second. Are there any other comments regarding that? Ms. Combs Yeah, I just want to be clear that this bill is setting up The pathway to allow local governments to move forward on public banking Uh, there were some obstacles and this bill will be removing some of those obstacles It sets us up to be ready to take the next steps in feasibility when we're ready Um when we decide Um, it is my personal hope that we could someday join a regional bank We're too small even within the context of this Action this bill uh to do our own we are we are we don't have 250,000 people Uh in our city yet But we could join with others Um, and i'm hoping that um Part of this Is that uh, we have vaguely said sacramento I'm hoping we can be sure to send this to all our senate representatives in a timely fashion So thank you. Thank you mr. Sawyer Thank you mayor. I I have a couple of concerns I am not at all against the state moving forward with making this an option for cities to pursue However, the way this is written as a resolution is not a letter It is it is very action oriented. It suggests that santa rosa um It suggests to me that the council is um looking to move forward with the possibility of creating a Public bank before we have had that conversation So a letter and asking that this legislature support allowing cities to um apply Is different than the city of santa rosa saying we are um fully in support of Santa rosa or it or it sounds like santa rosa is in support of going forward with the public bank And we haven't had that conversation to my knowledge In fact our long-term financial planning subcommittee have heard a very uh lengthy Discussion or a report from our financial director cautioning us about the downside And there were some of the realities none of which are let mentioned here in this resolution So I am not against sending a letter I'm supporting options for cities to move forward, but this reads differently to me personally This looks like an endorsement of the concept For the city of santa rosa And I think that we will be have the people will come before us in the in the near future and say You have sent a resolution to the sit to the to the sacramento endorsing the concept of fun of public banking For santa rosa, and I think you should move forward as soon as possible in the creation of a public bank So I am not this makes me uncomfortable if it was written in the form of a letter That specifically targeted the freedom of cities to or the legislator to allow cities to apply I can see that but this this reads completely different to me. It's very action oriented and I I disagree with the tone of this resolution As opposed to a letter that might suggest options for cities So thank you, mr. Sorry, and what I understand the motion to be was that I would be authoring a letter not just sending in the resolution So it would be and we do this for other Support of different measures. So it would be authored by myself and staff working on that With what just with the intent what you said that we are supportive of the local control for So so now I'm confused. So why do why are we looking at a resolution? It's just an attachment for that what I heard the motion being because someone I guess could made a motion that we forward that resolution But what I heard the motion is that the mayor If it passes author a letter in support of the passage of ab 857 not Attached that resolution Okay, and because the resolution offers no secondary No second side to the to the conversation So and and and a letter wouldn't need to offer all it could allude to we understand that there are many challenges in creating public banks and our our and the senate and sena rosa But sena rosa would would endorse having the option in the future of of creating one But the the last line further resolved I'd put right at the top of this of this resolution if there is if if there is a resolution to be created as a Indian and I I'm not comfortable with sending this resolution with a letter I personally would be if let's just hear all other comments. Mr. Vice mayor and then we'll go back to Thank you, mr. Mayor. I also wanted to make sure from our discussion and from the analysis of the bill This bill by itself will not clear all of the hurdles that councilmember combs was talking about And so one of them that has been particularly thorny is this question of whether or not it's even constitutional for the city to invest their dollars in a local bank Whether or not we have the fiduciary ability to do that So I do think that I am supportive of us sending a letter in support of this legislation To councilmember soyer's point I would also like us to have in that letter that while we're supportive of this bill We understand that there are additional hurdles and would like to see some form of clarity from the legislature on some of those aspects as well You know the legislation's Analysis that was in committee talked about Some of the bigger cities like san francisco and la and the analyses that they've done about what steps it would take for them to create a bank So we know what many of the hurdles are I would like us in our letter to also include that we're urging the legislature to clear up some of those additional hurdles Not just what's in this bill Thank you. That was helpful. I Agree with you in the analysis. I think it was a senate analysis On the pros and cons Mr. Timbs, would you like to clarify what your motion? I mean sure I can I can amend it to take some of the consensus that we have here that we will be Sending a letter in support and I want to be clear about that of assembly bill 857 And we will add language and authorize the mayor to sign this letter And we will send it to senators per council member combs's request. And what we will also do is do Add some sort of concluding language suggesting that we Look forward and anticipate the legislature to work out the additional regulatory issues Hoping the clerk has that or maybe we can review it But that that would I guess be the the crux of my motion and I do want to say that to council or to vice mayor roger's point Is that You know that And to yours mr. Sawyer The problems that we do have with it are some of the issues I think as I understand it with our charter and also that you have federal regulations that Prohibit certain things like fdic insurance and other things But it doesn't mean in my opinion through when we look at these budgets going forward for the future And if you look at those item lines where we're sending I think it was at one point in the last budget 38 million dollars in debt service To wall street banks on bonds mostly from the water enterprise fund But also from what we send here and you think about what that 38 or whatever that number is now today Those tens of millions of dollars could do in this community for our infrastructure needs our homelessness needs and on and on You know this has got to be something that if we're not going to say we support it and today We we do need to have that discussion this year Hopefully about doing a resolution of support Because if when you talk about the amount of money that's at stake if it is a possibility It's an important conversation to have Okay, miss combs any additional comments as the seconder. I think I have to say that I support the The motion as amended and appreciate That the mayor is able to do considerable wordsmithing to gather the The will of the body And i'm perfectly happy with having him do that word smithing feeling confident that he will reflect each of our Concerns adequately And again, I hope that thanks All right any additional comments Okay, we have a motion and a second your votes, please In the past So we will be offering or I will be offering that with some assistance from staff and potentially some of my colleagues And get that letter off as soon as we can Okay approval minutes From may 21st and 22nd. Did anyone see any additions or corrections? Let's see none. We'll accept those as submitted consent items mr. McLean item 12.1 motion contract award roseland pavement maintenance item 12.2 resolution fiscal year 2019 20 agreement with legal aid of sinoma county item 12.3 resolution high-density multifamily residential incentive program administrative corrections item 12.4 resolution donation from rotary club of santa rosa west for coffee park Coffee park public art item 12.5 resolution donation from rotary international district 513 0 sinoma county fire relief fund for coffee park public art item 12.6 resolution adopting council policy 000-69 Standards of conduct city procurements Council any questions on the consent calendar Mr. Tibbets, thank you. I just have a really quick question about 12.6, and it may actually Best be answered by you sue. I noticed that in the language 3.1.9 in the exhibit It's talks about equity being in there As and basically a fair purchasing process and I'm sure it's fine But I just wanted to get clarification would it at all hinder our ability to give stronger local local preference ordinances Or stronger preference towards women-owned businesses, etc. Because I know the long-term finance committee is working on that Yes, it will not interfere with us exploring those provisions There are provisions At the federal level that when we are engaged with federal dollars Those provisions Generally cannot be included But in general for use of our own funds Yes, there is nothing in the policy that precludes local preferences. Thank you Any other questions for staff? Okay, we have two cards On item 12.2 Roni Rubinoff and then 12.3 George Uberti Good afternoon council members This is my favorite time to address you because I get to say thank you And I get to tell you a good story because you just have to hear all the good work you're doing I wanted to remind you for a minute that legal aid is helping people avoid Homelessness and stabilize their housing in a variety of ways. Not all of them are always obvious to you So we help with price gouging and holding that back. We've helped with enforcement of repairs We help with standard evictions, but sometimes it's also about keeping people in the house by bringing them income So here's claire story claire 75 She has serious mobility issues When she came to legal aid she came because she was being evicted so it seemed like a garden variety eviction on its face Turns out she wasn't able to pay her rent because the social security administration had hacked her Benefits in half Suddenly she was making about 400 dollars a month. That's why she couldn't pay her rent So legal aid was able to intervene Go to social security have a hearing get her documents and figure out that they were actually making an error And they would unlawfully been garnishing her a check We got that amount restored to over 900 dollars a month As a result She's paying her rent and she's stably housed So thank you. Thank you if it were not for your support and I really mean this if it were not for your support Claire would be homeless today. Thank you for your belief in equal justice Thank you. Thank you for sharing that story. It's nice to hear George You know item 12.3 if uh, if you are in this room And you have not had a chance to come up here and look at these uh resolutions or these amendments, please Please do it Because it's a great time to see that what we're looking at is uh, you know, not just a incentive program concerning administrative corrections but I think maybe One of the best examples of how we are in the unique position of as a city of being really bad at playing dumb Right, like if we can't even play dumb correctly What are we doing? The corrections that are made are to uh the downtown area Right and the downtown area that was included in an incentive program. We're trying to get people to build homes right now nine months ago Literally an amount doubling the area that we'd be incentivizing people to build homes in uh was Inadvertently omitted and there's no follow-up in the report Right now. This is this is a tier one priority. It's taken us nine months To figure out that we incentivized half the area that we were supposed to Right.  It's talking about five hundred and twenty thousand dollars in waived permit fees for developers Right, so I mean, I've I've done a lot of criticizing. Uh, you know how you all catered to developers, but we're not even doing that correctly Right like this doesn't benefit developers Doesn't benefit people who need houses. Who does it benefit? It takes us nine months to figure out that we've Failed to incentivize half of it. I mean it literally doubles the size of the area.  Oopsie poopsie is not an explanation All right, it's not acceptable All right, and not acceptable in the slightest. Okay now I mean and then in this plan in our incentivize this plan we have This is for when they break ground right and break ground breaking ground is defined as obtaining a permit How that this is sloppy It's lazy. It's dishonest Right, and it damages the people of santa rosa and the building community it benefits nobody Right, this is bad government Right, and it's a lazy lie Mr. Rogers, you have this item Thank you, mr. Mayor. I will move items 12.1 through 12.6 of the consent calendar and waive for the reading of the text Second We have a motion in second in your votes, please In that passes unanimously Madam city clerk. Do we have some cards for public comment on non agenda items? Okay, we have one card elizabeth nealon Well, thank you for listening here Um I uh want to speak on two subjects. One is colonization And the state of our government with deeply the federal government's deeply Deeply in debt No hope of ever getting out of debt if they don't stop killing And conquering the world With their stuff um I believe we are in the process of colonizing venezuela and honduras. I understand that Some kind of military invention took place Intervention took place down in honduras maybe 10 or 15 years ago. I heard this on berkeley radio And that basically Our military militarized the drug lords of honduras and now they Exercise brutal control over the rest of the population And of course, um the whole thing in venezuela is is I don't know if it comes on your corporate media because I do not partake of corporate media And i'm very proud to announce that I no longer have a cell phone Or a vehicle I am so glad to be free of those two things believe me, but the government has never stopped being creepy It was creepy when I was 20 years old and it's creepy when i'm 70 and um Let's just say that in our united states detention centers 24 people have died In the last couple of years while in custody or within a short time after they were released At least five or six children have died in u.s custody. The privatized detention camps are inadequate They serve bad food and they practice soft-core torture by keeping the centers at uncomfortably cold temperatures I also heard that a teenager had been killed at the border. I heard that on kcbs radio and I didn't hear any other details female male What excuse they made for killing someone? um I guess down in brazil the right took over how they how they did it They disparaged and jailed the the left Left working class candidate Yeah, yeah, there's just unscrupulous. Yeah, that's the kind of uh Of energy that we have around us all the time I don't know if i have anything else. I really have here. Let's see. Yeah, all you know like freeing portorico You know, I mean why would we hold on to some a country that should be free? That's capitalism And it's worst and ugliest Thank you. Thank you. Anne sealy mayor and council and sealy wanting to thank all of you and any of you in particular who were Active in the resolution of the baudin asphalt plant relocation It is just fabulous that this is finally finally finally been resolved To the benefit of everybody I think Thank you very much Thank you. Any additional cards? See none and see no city manager nice timing item 14.1 I believe we're going to the public hearing first so um 15 point Okay, you want us to go to this? No, remember 14.1 follows 15.1 on the on the agenda We'll be healed after healer hurt after 15.1 I noticed it backwards in my package So It will be hurt after item 15.1 Item so can I go to for 15 15.1 15.1 public hearing public hearing on adoption of the city of santa rosa fiscal year 2019-20 operations Operations and maintenance budget and capital improvement program budget Chuck Mcbride chief financial officer presenting Good evening honorable mayor if you know just one second I think councilmember combs has a question for clarification before we start I just want to clarify that if we change this sequence does it have an impact On the outcome of 14.1 that we have adopted the budget before we've adopted the reorg It is it a catch 22. It's a it's a catch 22, but it allows for a conversation on the reorg But it's a catch 22 So if we make some changes in 14.1 do we have to revisit 15.1? Conceivably, okay, so Is it possible for our discussion of 15.1 to be continued to after 14.1 even though we're doing 15.1 first I'm just asking in case there's a change in 14.1 so that we can pick the budget back up I'm just asking about how I think there's some things in 14.1 do not move forward There's going to be significant other things that have to be addressed. So I I don't know how to answer that question You adopt a budget you're adopting spending plan Then if you don't move forward on on classification I'm going to have to make some changes within the organization and so that That We would be back probably at a future date to have other conversations But at this point I'm asking for classification Considerations if they do not get improved We will have to adopt the the organization will have to adapt to those Not moving those classification studies changes forward I I don't know how to how to how to answer that question fully if we do the classification Study first you we could go back to that conversation If you want to do it that way it's I'm I'm Do you have any additional questions I was Thinking that it would be reasonable for us to do the sequence that I will listen to my colleagues As it's proposed, but my concern was to have the final vote on 15.1 prior to 14.1 and just wondering if we could have the public hearing but not have the vote until after we've heard 14.1 Is that possible and does it work for us? Let me hear comments from thank you. Councilmember Fleming. I'll make some comments If I understand correctly if we approve 15.1 prior to 14.1 We will be in a bind of really having to approve 14.1 in order to get a budget passed today Is that correct? So it makes it almost a null point Councilmember, uh, yeah, they they are Tied together obviously so if you adopt the budget the budget is the appropriation of the dollars So you will be um, you'll be Eliminating the dollars that we associated with the savings that go with the reorg When you go to item 14.1 The resolution that's with that actually affects the fds and the counts and the reclassifications So you could conceivably cut the budget and not do those other things And we would just have to figure out what the ramifications were with those fd changes with the budget I'm just wondering if it doesn't Make sense that we would do the reorganization upon which the the budget as presented is contingent Prior to passing the budget as pretend as presented I actually think it's easier to sort out to adopt the budget and then sort out if council doesn't move forward the classification Is the you're approving a general structure with the budget There's specific changes that come with the classification If you don't approve those classifications The city manager as per the charter needs to make adjustments to make sure that the organization keeps Moving forward in absence of those classification study So I may be back with additional proposals at that point, but you're adopting a budget The budget could still function without the classification changes I would just have to make amendments to the structure because that's the city manager's prerogative in this conversation So I believe as it's presented You can adopt the budget and go through the hearing If you don't approve the classification changes, then I'm going to have to make some adjustments to the structure of the organization in absence of those and so it actually again Adopting the budget gets us through the budget hurdle if you don't approve the classification changes then then then we're in a different conversation I might have to to Because I'm not negotiating that in the conversation if if you're not going to approve those classification I'll have to go back and figure out a new way to run the organization that that's that's the answer understood So the direction I want us to move forward on will take 15.1 after the presentation We'll see what motions are made and we may have to revisit this item or not. So please proceed All right, mayor vice mayor members the council. Um, we're here tonight to uh, to for the budget adoption for the fiscal year 1920 budget So on the agenda tonight, we'll look at budget changes Since study session and that really includes budget changes that we talked about in the study session to the preliminary proposed budget We'll take a look at the citywide proposed budget overview and then break that down to the general fund budget Uh, we'll also review at the end, uh, the fde staff summary Which includes the cuts that were proposed at the may workshop and then we will Ask for adoption of the budget So changes since the may study session City manager's office. We added $300,000 for Ernst and young professional services. That's to take us to september if you recall we We did not cut a proposed savings from an accountant in the finance department We we kept that position on to help with this project specifically and we are now looking at having two of our upper-level managers in the organization Handle this project with that account and his collateral duties Fire department added $300,000 for the emergency preparedness funding We added two fte's one was a emergency preparedness deputy and the other was a community outreach specialist Transportation public works one of the discussions that that council had was on Additions funding for the rosaline library So what we put into this budget tonight is $150,000 in one time funds from the general fund for the rosaline library With the understanding that any discussion of ongoing funds is going to have to follow a more holistic discussion Starting with the long-range finance and audit committee On what the maintenance needs are for the rest of the libraries in the city So this is just kind of a a an immediate step in this budget to to give one-time funds to rosaline Housing community services. There was also a discussion at the may study session We initially put $75,000 into the preliminary budget for secure family funds on On a speaker at the may study session and in conversations with the county that's been taken to $50,000 and they are amenable to that We also had some staff reductions. So those first two bullets We kind of break these into two components the 39.25 fte's across the general fund Departments those were part of the cuts. So if you remember we started with a little over 49 fte's We paired that down a bit in in our may discussion And so we've landed tonight at 39.25 fte's is what's included in this budget on top of that. We had four fte's Those were for program Reduction. So those were planned. So if you remember in the finance department, we had cut A customer service representative some meter specialists And those were part of a plan with automation of the meter reading systems that were that were part of a long range plan So those weren't part of the part of the savings discussion one of the things that we had done also is listening to council's discussion in may we We added back a city planner that we initially proposed as part of those 49 fte's to be cut So we added that back as a limited term three-year planner that will specifically address general the general plan update And then as we kicked off our discussion tonight with the org structure What this budget does is propose the elimination of the deputy city manager Again as part of the budget we take out the dollars for that city manager for that deputy city manager But the item 14.1 actually eliminates the fte. So that's where we get some crossover There's also some reclassifications in here as part of a package So those were the that was the three acm model that's been discussed And the savings from that have been built into this budget We also reclass the communications and intergovernmental relations officer to achieve communications and intergovernmental relations officer and then we You will see when we look at the fte slides that we combine parks into into tpw So we split that from recreation and then recreation and community engagement become combined into a department Some other changes that we made since the study session. We had discussion about both infrastructure and recovering resiliency and per Direction from council. This budget includes three million dollars in infrastructure funding for buildings roadways and parks We also included another seven million dollars for recovering resiliency funding So one million dollars for streetlight replacement We put a million dollars into the budget for fire station number five rebuild So that's just for the initial phase to acquire land and do some design work And then we added five hundred thousand dollars for tree removal and four and a half million dollars If you remember that discussion about our portion FEMA projects for fire disaster Projects the local match we we set that aside and those are set aside in cips We also had discussion about about purrs and What this budget includes is our plan to take four point two million dollars from the pension obligation Bonds and do an additional discretionary payment to purrs and pay that down So we'll get first year savings of six hundred and eighty five thousand dollars We'll have a total savings of six point two million dollars. And like I said, that's just the first step You can expect that we'll be back next year Talking about this again and possibly exploring policy options to make this kind of more codified Home of services funding there's been some changes To the discussion that we had in may so I think when we met in may The the heap was being Thought of as a loan that's been settled. That's now a grant We applied for three point six million dollars That was going to go for the sam jones hall roof and santa rosa navigation center at the bennett valley senior center We only were awarded one point two million dollars. So that one point two million dollars was set towards the roof project at sam jones hall We also reprogrammed some Some funds that we had wept over from a 2016 NOFA that was one point six million dollars So what we did was we took an additional four hundred thousand dollars from that money and programmed it as Contingency for the roof project at sam jones hall. So I think there's some concern that as they get into that project There may be a greater structural work that's needed as a design build So that's why we asked for a relatively large contingency of about 25 on that project And then the remainder of that NOFA money was used for a capital investment for a pilot program at sam jones hall So that's a smaller footprint than the bennett valley senior center would have been but it's the same concept Where uh, or there's navigation set up center set up For homeless people that need that need more assistance And to get them into into homes It helps with placement and housing Citywide proposed budget overview So we talked about this in uh in the april meeting and in the may meeting This there's really no uh no material changes to this slide the general fund as we talked about went up substantially by almost $19 million or 12 change And if you remember our discussion from april a lot of that was in one time funding that we got from fema We also had about five million dollars where we'd taken down the ongoing budget forecast for things like property tax and sales tax Those uh, those decreases didn't materialize. So this is us kind of taking that back and normalizing those projections enterprise funds went up by By about eight million dollars. So those include the funds for water wastewater golf parking and transit About a five percent increase in those Keep in mind that there's a base increase of about two and a half percent just in just in uh salaries special revenue funds went up by 5.4 million dollars special revenue Some of that was um was uh the old measure o that went up But we also have the new measure i am the parks measure that's included in there So that's 1.9 million dollars of that and then another 1.2 million dollars of that is uh is what we just talked about for the roof At sam jones. So that's that's where you see a substantial amount of that 5.4 million dollars increase Other funds. Um, we had some debt service in there Also special assessment districts. Uh, we also have portfolio investments in there. So that's just movement within those items Housing authority we talked about the revenues went up by about 22 percent Most of that's due to about a 25 percent increase in the hud cost and the associated hud revenues Uh, so that's that's 7.4 million dollars that you see there. Uh, as a successor agency is basically flat That's just a pass through that we get to wrap up the rda. We have two bonds that were in the process of winding down And then expenditures by fund type uh general fund um was up by less than 1 percent So, uh, that's less than what you would have seen the increase in salaries And a lot of the reason is that we're offsetting a lot of the additional costs with the savings that we had from those 39 fts that we talked about Enterprise operating funds went up by under 2 by 2.2 million dollars really a very marginal increase Enterprise enterprise cips came down by 40 million dollars and most of that's because we had 33 million dollars in there last last year for For a water mitigation project that we uh, that came in at a lot A lot less cost than was projected non-air price cips are up by uh, 16 million dollars A lot of what you're seeing there is that 10 million dollars that we talked about that's being put in cips for Infrastructure resiliency and recovery That's included in that line item. So that's a lot of what that increase is there special revenues are Basically flat half million dollar increase The other funds are flat housing authority. We talked about the increase in the HUD cost So that's what you're seeing the expenditure side of that and then the successor agency is flat And at the bottom there you can see the breakout of the operating budget of 370 million dollars and then the cip budget of 70 million dollars So now we're going to uh Breakdown into the um into the general fund So the general fund. Um, this is just our major Major revenue sources. So as we talked about property taxes are down a bit That's because we got two million dollars in backfill one time last year from the state So this year compared to last year is going to be down a little bit Sales taxes are up a lot of what you're seeing in that sales tax increase of 15 percent is an organic growth That's the that's the new measure. Oh or the temperature temporary emergency funding course and tax that we had so that's driving that Uh, you totally users taxes essentially flat 100 000 increase vehicle license fees are flat And other taxes um are up by are up by uh 4 percent that includes uh to t real property transfer tax Um and franchise fees and some some other odds and ends that are in there Permits fines and charges went down by 30 um six million dollars Most of that is because we saw a lot of permitting activity for the rebuild and last year. So that's just falling off Interfund charges Are basically flat as well seven percent nine hundred thousand dollars And uh, those are just the charges that we that we talked about in the may session for general admin charges that we charge for other departments Uh transfers for engineering fees the finance department charges out Utility billing to water. So that's what you're seeing those buy dimes Uh recreational revenues are flat hundred thousand dollar increase and intergovernmental interest in other is down six million dollars And again a lot of one-time funds were received last year from FEMA and that so you can you can expect see some variation That number over the next several years And then we just break this down to pie charts 178.7 million dollars in general fund revenues As you can see those two on the right there between property taxes and sales taxes That's a little over 50 of your overall general fund budget So those are by far the largest drivers of our budget and sales taxes is um is is the largest Okay expenditures by departments. So we we combined administration. We combined a number of departments just for ease City council the manager's office the attorney's office human resources and finance are combined into that Overall, we're down by one and a half million dollars in that department in those departments So you can remember that we've got a cut in the city manager's office by a p's we We got rid of an assistant city attorney Finance got rid of a number of positions and hr eliminated a couple positions So that accounts for that decrease of 1.5 million dollars that you see year over year housing community services That's just the general force portion fund of of that department and they're flat Uh fire went up by 3.3 million dollars. Um, and as we talked about in may the primary driver for that's in is in salaries because We negotiated with fire unions last year and the effects of those are being seen in the 1920 fiscal year budget Planning economic development less than a 1% increase police less than a 1% increase Police is is offset by some of the cuts that they made in their in their non swarm personnel Recreation community engagement you see that um going down by 37 percent the reason that you'll see later slides when we talk about fte's is that that's Part of the combination with with tpw So that's also what's driving tpw's line out of there up by 26 percent Stormwater general fund only went up by a hundred thousand dollars. It's marginal and then non departmental Went down by three hundred thousand dollars and if you remember our discussion may non departmentals Just where we put a lot of those items that don't fit neatly into any departments. So Things like separation costs things like uh animal shelter costs those go into non departmental And breakdown of the expenditures and general fund in our pie chart here You can see uh, see how the different departments are uh, your safety departments are um Are you the line share of the budget there with police 35 of the budget fire 25 percent budget That's uh 60 of general fund budget Okay expenditures by category So as you can kind of see kind of pops out to you here We have 171.3 million dollar uh general fund budget And if you look at those first two line items salaries and benefits, uh, that makes up Somewhere between 70 and 80 of the overall budget. Um, so that's where we really focus when we're looking to cut budgets The salaries were essentially flat and that's because of of those 39 positions that we cut Same comment with benefits professional services went up eight hundred thousand dollars And if you remember on one of the initial slides, we showed you additional professional services for things like our instant young So we are seeing a little bit of an increase in that Vehicle expenses went up by two hundred thousand dollars um operational supplies were uh, we're we're essentially up by um by cpi escalator Utilities were flat information technology charge outs to departments was actually down a little bit overall And as you would imagine with recent events liability and property insurance costs are up a bit to 200 thousand dollars or 12.5 percent Capital outweighs those are just small one-time items year to year So those just vacillate depending on what what small items that we're buying a certain year and then cip no and m projects are down by $300,000 And um, this is your measure o baseline calculation. So, um, you can see that we've looked at What the requirements are for police fire and vpp and made sure that this budget Adheres to those baseline requirements the only one that's uh, that's really close there is your violence prevention You see the baseline of seven hundred sixteen thousand dollars in the proposed proposed budget seven hundred sixteen thousand dollars So there's a four tenths of a percent Or there's a sorry. There's a very small buffer. Um, if you took those numbers out to another three digits And uh, this is the uh, this is just a snapshot of the general fund overall We have revenues coming in at 178.7 million dollars We have transfers in so we transfer in a number of things into the into the general fund Largest one is is gas tax transfers about 1.9 million dollars makes up a lot of that 2.8 million dollars We also have transfers from the parking district and for measure m Traffic safety those are all part of that 2.8 million dollars. So when we have those transfers and revenues We have 181.5 million dollars the expenditures are 171.3 million dollars We have capital improvement projects of 12.2 million dollars that we transferred money to and again That's where you're seeing that transferred 10 million dollars that went to infrastructure and recovery and resilience and then we have other transfers out of 5.8 million dollars And a lot of that is Transfer of almost 3 million dollars for homeless operations from the real property transfer tax We also have 1.2 million dollars in there that's for parking enforcement. So if you remember our discussion We collect the revenues from enforcement in the general fund and then we transfer the costs of those to the parking enterprise They're the ones who actually do the enforcement work Staffs of general fund reserves Our plan was to take some of those reserves and use them for one-time monies To to fund infrastructure resiliency and reserves some of the other things So you can see that we overshot there a little bit Our estimated reserves are 24.6 million dollars, which is 14.4 percent I'll just a little bit under our 15 percent The reason for that is when we took council direction and went back and started moving the budget around We had things like the 300 000 dollars that we put back into emergency operations of those kind of things So we kind of overshot a little bit But that's uh, that's something that will be um be addressing again with council I think we're coming back in december to talk about our our general fund reserve policy And if we want to update that and maybe change those target numbers a bit, maybe to the high maybe to the high side And this is just your long-range financial forecast It's basically a snapshot of what we showed you in may the the line on top I know the colors aren't aren't highly distinguished there But the the blue line is your revenues that hasn't changed the top line is your expenditure line So that's where we stood when we came and talked to you in may 21st 22nd Once we went back with the council direction made the cuts and the fts took all the other actions that were directed You can see that that line dropped down to that reddish line there This below the orange line. So we've closed that gap a bit So as we told you what we what we provided you here is just kind of a immediate step We have more work to do so so you can expect that we'll be coming back to council over several years and trying to get those lines to converge even more and to to uh Get long-term sustainability so that they so that we get uh, maybe that blue line over that red line at some point And then the staff summary I'm not really going to belabor this because because we've been through this quite a bit in the previous two workshops this just shows you a a A comparison of past actual fte accounts going back to fiscal year 1516 and then you can see there what the fte change was going from 18 19 to 1920 And that's in that shaded column there second from the right You can see community engagement went from seven fte's down to zero Again, that's just part of that reshuffling So you're going to see that rexon parks goes down by 74 fte's And then you'll see the creation of the recreation community engagement department Those those positions some of them are going in making up that 44 fte's and then tpw is going up by 16 fte's So that's as we move the the parks maintenance component over to tpw and then if you recall that uh tpw and Reckon parks also had some changes that they had proposed as part of the cuts So you're kind of seeing a netting out there and then you're seeing the numbers move from one department to another Overall, we went from 13 6.5 fte's down to 1258.75 so About a four percent drop there Pretty good for a single year and then Some position change detail and this was presented at the at the study session So these are those four fte's that we said were kind of program decreases. These weren't part of the part of the savings cuts So we had a Sonoma county public safety consortium administrator. That was an fte that was um that was uh budgeted in the city manager's office But the position actually resides at the county we got rid of that fte account on our roles And we moved the budget over to the police department. I believe and then as we talked about in finance department We got rid of two meter specialists and one customer service representative and again that was part of a long-range plan that was part of the automatic meter reading program Staffing changes um So this is just breaking it down by department So again, i'm not going to belabor this because we've we've been looking at uh at these staffing changes since january So i'm sure the council and the public are probably well aware of what we're doing here But it's just what we got rid of one assistant city attorney the deputy city managers. We talked about We get rid of the of the dollars in this budget The administrative secretary and the cmo was removed. We got rid of a community engagement director As part of the consolidation within the finance department. We eliminate a revenue manager payroll manager senior admin assistant We added back the accountant to deal with the uh to deal with the work that was done Brian shirt young and then we got rid of 0.75 senior admin assistant in fire And then uh, I think uh We got rid of community outreach or we added the community outreach specialist and deputy emergency preparedness coordinator that we talked about in the first Slides and that's for emergency preparedness measures. Uh, and then we eliminated one community outreach specialist in hcs eliminated half a senior admin assistant hcs And then hr is part of their organizational structure that they looked at last year. They eliminated a vacant employee services manager Um, and then ped uh got rid of development review coordinator And then ped had also offered up a city planner as part of the cuts Following discussion with council in may we put that back in as a three-year limited term As we mentioned to to deal with the general plan update We also eliminated in ped a building plans examiner and program specialist too Police as part of the discussion with council in may had originally offered up some additional positions that were sworn a sergeant and sworn officer we we put those back into the budget and then we took Six other fts out of the police department that are non-sworn including those three cso's Recreation got rid of recreation coordinator that was vacant. These are all vacants. I should add administrative secretary in parks We got rid of the park superintendent senior maintenance worker and then for crownskeepers that are vacant as part of that consolidation However, um, I understand this parks is filling the other two existing crownskeeper positions And then for tpw, um, we eliminated a number of positions senior admin analyst They got rid of four civil engineering tech threes the city surveyor senior maintenance workers. They got rid of two fts there Uh street crew supervisor skilled maintenance workers And then these are the non-general fund position changes some things to point out here as part of our original proposal We had eliminated two it tax And then our discussion with council in may we had we had decided to add back one and that's being funded by water and tpw. I believe Equipment mechanics were part of a long-term plan I gained rid of two vacancies there to right size their workforce And then those five positions on the bottom bottom We talked about in the may study session and those were part of some of those were efficiencies and changes in programs that water's responding to With those five eliminations And that is the adoption presentation this time. Uh, I can invite question comments Thank you for that presentation And I do just want to clarify for maybe some members of the community who this is their first council meeting There's a tremendous amount of information there just to put it into context I think this council of the first presentation was back in october about those proposed cuts So we've been swimming in these waters since at least last october And was it 10 to 12 hours of study session hearings where we've been digesting this got more feedback So I really thank you and your staff for presenting this together In that comprehensive model, so I do appreciate I know how much work goes on behind those what seem leaves It seems rather short 32 slides heck of a lot more there All right council questions, mr. Tivitz Thank you, mr. Mayor I just have a quick question for you chuck and I kind of alluded to it during our 12-hour budget session that the mayor's referring to You know, I was kind of asking what what was your idea of where that Unanticipated 21.6 million dollar budget surplus come from and I think We surmised that it had something to do with the real property transfer tax In the first year and then Subsequently a property tax change in the second year as a result of probably increased titles changing hands and resetting The proposition 13 baseline for those property taxes and what i'm driving at or the question i want to ask you is That chart that shows the budget deficit Going forward It looks the same to me and have you have you gone back and made changes after that budget surplus because I can't think of a situation Really where property taxes go down Except for the fact of maybe a major catastrophic event. You don't get backfilled from the state But I mean realistically when the property taxes change doesn't that kind of become a new baseline? Yeah, so if it's if it's existing properties, you're you're restricted by the prop 13 growth You know that maximum growth of 2 so if you don't add anything to your inventory It's pretty easy to to figure out But you know the things that we have to account for our Our properties that are going to be Are going to lose their appeals once they're rebuilt and go back to their Back to their their prop 13 baseline In any additions that we have to the to the housing and the commercial stock Those are things that'll that'll drive up your property taxes and yeah, you're right I mean the the transfer tax thing gets a little bit tricky We kind of looked we couldn't figure out why property taxes were up this last year when when we lost 5% of our housing stock It didn't seem to really intuitively make a lot of sense And you know as we it's and then when we looked at it transfer taxes transfer taxes were actually down a bit So that made even less sense But yeah, you're right if we go back a couple of years and look at transfers They seem to be up a couple years ago. So because of the way that the uh, that um, That the assessor's role the timing of it It could take a couple of years for those to Those transfers of title to make it on to the actual assessor's role and start putting upwards pressure on our on our property tax revenues But I thought if I buy a house from somebody who's owned it since for example, let's say 1990 And that person bought that house for two hundred thousand dollars There they get capped at about two percent a year under prop 13 But when they sell it to me as the new owner aren't I assessed at the new market rate price? Yeah, your your new property marks the market. So whatever you bought it at that's the new price But it could take um, you know, you'll pay those supplemental taxes in the first year But depending on where you buy it in a year it could take it You know over a year to work its way onto the onto the assessor's roles I'm the what I'm what I'm getting at is I think that you know Looking at our property tax revenue This year it may be helpful Certainly for us going forward to look at that chart again To see what that does to that deficit line because I think it was a wonderful, you know Find that we had 21.6 million dollars But what what implications does that have going forward? I recognize we have systemic issues But I don't want to be up here always ringing the doomsday horn When we should probably recalculate that chart Yeah, just remember though that the 21.6 million dollars didn't come with property tax That was only a very small portion of that so if you remember we said of that about five million dollars It was where we had under forecast and property tax was only a portion of that So yeah, I mean we we are definitely going to be conservative on our on our um forecast You know if we see a reason to bump them up Because something's changing we're going to do that But I don't think you know you have to keep in mind both sides of the equation So yeah, you might have a revenue that's growing at three or four percent But you know remember when we when we build our model on the expenditure side We have a you know a base of of two percent for salary growth. Well That two percent could be argued um easily that that were an error because to my understanding We we have uh negotiations coming up with every bargaining unit next year We we we may have missed with our with our two percent growth rate So, you know also on the expenditure side we and the revenue side we haven't factored in a downturn So yeah, we could have increasing revenues from property taxes and even in a recession Property taxes probably aren't going to go down that much because of the prop 13 limit. They they they're not They're not highly elastic when you compare them to economic activity But you can imagine that things like sales tax are definitely going to take a dive if you hit a recession t So council member one of the things that I've asked uh Chuck to start to do is is work with the long-term finance committee to actually go through every assumption as part of building The budget starting next year. So one of the items will be a review of of of The forecast and understanding of where the forecast is being generated In that discussion and as as as always those those meetings are brown act meetings So the public is welcome to attend those meetings But to your point so we can bring some clarity of where the assumptions are coming from Because it does get it does and especially if post a disaster it really does get confusing because we're trying to piece together some of this But the major lift was from underestimating sales tax and I will say Our conservative positioning kept us in a much better position than other folks within the Sonoma county footprint That's all I'll say who are scrambling now and with a much more aggressive forecast Against their general fund budget. So There there's always a flip side if you're really aggressive and under performs you you may be um racing to figure out how to cut it But the commitment that I've asked chuck to do with the long-term finance committee is to go through each assumption So that we can build that into a part of our budget conversation going forward and say This is where the assumptions coming from on this particular revenue line That's that's my request of chuck and he's committed to me to do that with the long-term finance Great thanks and one more question I have chuck and you just kind of flagged it and that was that was the first time I heard you mention The potentiality or likelihood of a economic recession and I tend to agree And on that 4.2 million dollars that we have in this Are we still taking it in the direction? I forget the the strategy that we're employing here Where we're basically buying down our our pension debt versus the feathering account method To fulfill any shortfalls in the market projections Of purse Yeah, that that's definitely part of the long-range strategy. Okay Yeah All right. Thanks. That's just Miss comes Thank you. These are Very similar follow-up questions. I'm wondering if you could put up I think my slides are numbered slightly different because the original packet had different numbers than the existing packet I think it's slide 21. It might be slide 22 I'm looking for the long-range financial forecast graph I This graph Sets me back every time I read it If I understand it correctly Um If you were 16 now When you're 22 we have a 19 million dollar deficit Between our income and our outgo. Is that about right? That's right, but that that assumes that we don't take any corrective acts actions by the time you're 22 Okay, so i'm going to go through the list of what else isn't shown here So what's not shown is that we could think up some corrective actions we haven't taken or tried to take yet It also doesn't show a downturn in the economy coming which would make that worse not better It doesn't show salaries Increasing at more than 2 and sometimes we do see 3 and higher increases in salary It doesn't show the deficit we have in maintaining for example roads That's that's not on there's no road maintenance deficit So it doesn't show how much we should be expending If we were maintaining our roads and our buildings properly. That's not on this graph What is on this graph are? Uh, I think it's is it Some measures that are stopping around If I were 16 now, I would be 21 around that time We have some measures that we would we have some measures stopping in 24 25 Correct the new measure oh Is only got a six-year life and and that's I think 24 25s when that falls off So that's why you see that blue line start to go down Then we also have I think it's measure n that falls off the following year So n is the second year and oh is the first year But we also have the old measure m and the old measure o is that right that are coming off around here Well, the old measure o is actually a special revenue if you remember it doesn't go directly in the general fund however But we use it to hire people don't we exactly so there's there's personnel from from fire and police that are that That would have to be funded by a different source presumably the general fund if that source went away Typically fund police and fire salaries when we don't have other monies from other sources through our general fund So we would see that's not in the red lines either Okay, so oh and m Don't show any of the I think it's like 19 policemen and six firemen. It's correct. Yeah something like that. Okay so While we might say this is conservative this really doesn't show How it makes my heart stop when I see this chart because I'm really concerned about the maintenance piece If I recall correctly If we can keep a road above 60 something In our zero to a hundred chart of road quality We can keep a road in good enough condition. All we have to do is resurface it It's a lot cheaper and it's cheaper by is it on the order of five percent I'm looking for a five times 10 times 10 times cheaper to Keep a road where it is than to have a road deteriorate But right now we're having our roads deteriorate because we can't bring them up to The maintenance levels so in future it would I think be useful to see A line that included the maintenance deficit on here Um Can we go to page? I think it's 17 On mine, it's 18, but I think yeah, that's the one Um, so at the bottom There is a drop in our Cip which is capital improvements And o and m projects investments That's the six point eight percent drop Is that telling me that and that's what Of the drops of the percent changes we're seeing It's the third largest right Liability insurance and professional services and then dropping So it looks as if we're paying for Increases in other areas by not doing maintenance based on this chart. Have I misunderstood what I'm reading here So let me just caution you a little bit that that's a little bit of a strange line I will admit so we we call it cip and o and m projects Um, there's really keys that we use for special projects And again, this is kind of like non-departmental things that don't fit well each other So an example of that would be I I have an energy audit within my budget to go and look at what the city-wide's Energy usage is and if we're paying the correct rates This is where I put that so you may actually see a decrease in money for things like studies Okay So when we get to the capital improvement piece I will want to know the change in our capital improvement investment Over time because this may not be the right place to look at it Um, and then I want to look at page 28. Maybe it's 29 I think on mine. It's 29 and on yours. It's 28 And then the page after that these are the additional staffing changes On on 29 There's a maintenance worker Street crew worker and another maintenance worker And then going back the previous page. We're seeing ground keepers senior maintenance workers being reduced So again, I am seeing that we are balancing our budget on city maintenance Through how we're employing or not employing people and that concerns me again Um, it seems to me that one of the things that When I asked for a puppy my mommy said to me Are you going to walk it and feed it and brush its coat, right? You don't have something without maintaining it because it causes problems if you don't So so one of the things that with the proposed realignment is to bring us to sort of apples to apples comparison as we look at our facilities And really understand our approach on those facilities So I want to remind council that these are currently vacant positions So they're not doing and they're not doing that particular work what we want to be able to do is bring back a A really a service oriented model through that realignment that's looking at our facilities through one lens Or we have a uniform approach to how we handle it because to your point council member We still have issues. This is only the first part of a conversation We sort of have to rationalize our our business model and look at our facilities from What is the service level? What can we what can we legitimately perform and come back and have those questions with council moving forward? Right now it's been it is a painful exercise you know Jason has spent the better part of a year and a half working on the tpw side And really trying to understand What what we're doing how we're doing it and how we reorganize to to preserve some service levels But and then the next question is going to be over the next year What services are we going to continue to do both in-house? But also for the community and getting a better understanding that and that really is what we're trying to do We don't like to see any I could tell you We wish we could fund a lot of what's on this sheet and continually What we have to do is sort of understand better What we have and we've made tremendous progress over the last year and a half You know We we finally have that facility asset the next part is to really look at our our open space asset for lack of a better We're playing field assets and bring those into alignment That's where we're going to go over the next year and have that conversation with the council This is painful. It it's been painful from october. I think that's the reason it's taken so long But we're trying to get to that place where we can start and have this conversation and be strategic About those investments and how we manage our facilities ongoing, but absolutely following up on that then um It i'm very interested in for example hearing in a future discussion Whether it makes sense to pay For policemen to respond to problems in for example julliard park And to know how much it costs Annually for police to respond in julliard park, which i think is a fairly high number To problems in julliard park versus having maintenance employees who are typically less expensive than police officers Be like eyes in the park so that we can enliven and invigorate the park And i would like us to take that conversation into account As we move forward and we're going to be looking at all those options So i'll be asking for what does it cost to provide police support in parks instead of maintenance in parks In the future my last set of questions are around slide eight, which is the homeless services funding And one of them is just to ask you to remind me Because i remember that the dollars came from heap I remember that we talked about how we needed to fix the roof at sam jones I'm not recalling the decision To divert the funds from the bennett valley senior center at the council level Can you remind me when we made that decision to divert the funds at the council level? I just and I apologize i'm just I was surprised and I couldn't remember that We had made that decision here It's quite likely we did and I don't remember Yes, so dave guine housing and community services and kelly kikindaw the program manager Thank you The the the word divert is is um Is what's a little misleading? Yes So well What to remind the council in the audience? Council gave us direction to apply for 3.6 million dollars of the state resource to re-roof samuel jones hall with the contingency And to activate the space at the bennett valley senior center We were only awarded 1.2 million for the roof. I remember that so at the same time We were in discussions as staff about this 2016 affordable housing pilot program notice i sent out a few communications to council on that That two applicants weren't able to use that resource yielding 1.6 million dollars And so the discussion was well, what are the options for the council? Should we replenish the reserves the reserves ended up being there? Is that a sufficient amount to activate the bennett valley senior centers? We originally thought Um No, because we had asked for 2 million dollars and we needed to pull 400 000 for contingency So then it was like well if we're extending the useful life of one facility by re-roofing it And we'd like the footprint of the bennett valley senior center to allow for more accommodations Using the classrooms in the office space What if we use the 1.2 million million dollars to invest within the footprint of samuel jones hall and achieve those same arrangements And create a separation between the navigation center Which is managing and helping are most critically and underserved homeless population Without mixing them with the rest of the population in the facility We were going to proceed in may with with telling this and in seeking direction But because it's a budget consideration it is now Embedded here that that is the background of what you see in these bullets So if I were interested in holding the 400 Thousand in contingency But wanted to use the bennett senior center As best as we could Was is it possible at this point to to use 1.2 million and see what we can get out of it at the bennett senior center? We could make that alteration. I don't believe that that's that's a final decision But I look to staff to see if that we could receive that direction And and I want to say flexibility to have the conversation at the council level rather than to just do it today We're happy to to do that. Thank you. I appreciate that The the other question I have is that I know over time we have asked for rfps to be used with the catholic charities Because we have a I think 18 year old rfp with them I mean, it's a very old rfp So what i'm asking is Before we spend all this money on a facility in a program with an entity Have we gotten an updated rfp? Or have we sent an rfp out so we have not we have not done a solicitation and I would like in this item To have clarity from council and if that's what they want us to do so that we can answer that question I think it I'll be honest. I think it has somewhat been Unclear if that was a formal direction or a request and so well because council hasn't voted voted on it I'm surprised it's unclear because it's come up a number of times It's come up, but there hasn't been a formal action and I would request a formal action. So My understanding is that we have had some questions with regard to Data reporting and some other details with Catholic charities this is not a criticism of them. This is that we need to refresh our contract So I would like to if you're asking me to do that at this moment And it's is it appropriate can legally we do it to say we would like to move an rfp Or are we legally out of bounds to ask this question right now? Um the issue of an rfp for sort of service provider is not on the agenda for this evening So so I will have that scheduled so we can get a determination. Thank you. We need to have that conversation We're continuing to send money to an entity that we have not negotiated with In the in in a near time and we don't know if another entity would like to provide those services for a comparable price Thank you. Those are my questions and I appreciate your time mayor Mr. Rasmere Thank you, mr. Mayor if we could go to slide 13 So mr. Mcbride, I just had a quick question about the sales tax figures that's on there I see the change of 8.2 from 2018 2019 to 2019 2020 Um That does not include excuse me 18 19 did not include the new version of measure o Correct Yep, it didn't include a full year of it. So we had added in one quarter a year into into that into the uh fiscal year 18 19 Okay, so the change of 8.2 Is less than what we anticipated coming in for measure o by itself We had talked about somewhere between 9 million and 10 million Does that mean that our assumption on sales tax so that it's going to be largely flat in terms of economic output? No, so you and you just identified the The math there so if if we hadn't put any money into 18 19 and we were compared to a baseline of zero That would have gone up by exactly 10 million dollars, which would be our projection But because we had put money in for the last quarter of the year Now you're just seeing the delta between one quarter and four quarters of that measure o money, right? But we are Even still even if we hadn't put that in we're basically Assuming that our sales tax is going to come in about on par with last year over the next year Yeah, we think so. Um, we work with community services on our on our sales tax projections So we think sales tax will be slowing a bit And is that just an overall negative economic indicator? Yeah, yeah, we're seeing slowdowns and things like new auto sales So which is a big driver for us. So we think sales tax is going to start flattening out a bit. Yeah, okay If you could go to slide 17 Actually found this really interesting the increase in the liability and property insurance the 12 and a half percent That's the first time i've seen a number Uh, and it's a discussion that we've had a lot around rebuild Do we know if this is consistent with what our constituents are also seeing on their own front? It's I can't really speak to that because they're a little different models We're we're in a pool So, I mean it's the the overall upwards Cost of that's gonna it's it's going to be the same Variables they're going to drive them up. I don't know if theirs are going up at the same rate that ours are But but the same forces are going to drive those up Essentially our rates are based on seven or eight years of experience So when we had something like the fires that backers into that and that's going to drive those rates up As those fall out of our experience those rates will probably normalize again I think it's safe to say that all all All all entities and individuals seeking insurance are probably facing a rise in those costs because of exactly what Uh, Chuck said which is experience impacts the projections Yeah, no and the reason that I point that out is actually because we spend so much time talking with the insurance commissioner's office and talking with the legislature and this has been a conversation that has Tangentially started to take place about the future of insurance for the state Particularly for folks that are in the wooey the wildland urban interface and whether or not they're going to be able to even get insurance fire insurance and so I think From for my part. I'm I'm excited to actually have a number to point to that's real In having those discussions for when we go up to sacramento and advocate for folks. So that's kind of why I was asking if that's What we are seeing throughout the rest of the community as well, but it is a good data point for us to be able to use And then just I wanted to thank you. I know you and I have had plenty of long conversations about Uh Measure oh the emergency sales tax that was coming in And I really want to emphasize that we need to use that as though it's one time funding And not build our budget and our programs around it And what I look at when we see how this budget has been constructed is that that 10 million that's coming in Is being put back into rebuild is being put back into deferred maintenance and then absent that or aside from that We've got the 4.2 million where we are able to actually address Some of our cow purse number as well. So obviously a tough budget year But I do think that it reflects values and the fact that we are putting money into our deferred maintenance and our Bridges and our recovery and in cow purse It will put us on a longer path long term or a good path long term for our long term liabilities Any additional on this one So i'm wondering um continuing on with slide 17 Going back to what vice mayor rogers was talking about with the percent increase for liability and property insurance That's 12.5 percent it flagged a question for me here and I apologize that I didn't catch it I'm not an accountant But it looks to me that the percent change column at least for that one And I haven't had the time to crunch the numbers here at the dais Is actually the percent increase not the percent change Because uh my basic algebra would give me 0.2 percent is 12.5 percent of 1.6 But the percent change is not going to be equal to that number So i'm wondering if all these calculations are based upon the percent increase rather than the percent change So the uh, so the columns are looking at there. So on the liability property insurance claim it's it's up by $200,000. So that's the dollar change and then that that that would be A 12.5 percent increase over fiscal year 18 19 So would you um then say that all of the um numbers in that column would be percent increase Rather than percent change So, uh, yeah, so it's it's the changes like if you look on the line above information technology That's actually down. So it's negative 2.1 and negative $100,000. Okay. Thank you for clarifying I was wondering if we could go back to I don't know what slide it is on the pension investment the purrs the 4.2 million dollars The slide is is not really that important to me But um my question is this I had remembered asking in our study session about The manner in which we're going to direct it toward cal purrs. I was wondering if you might be able to detail that at all Yes Council member foaming. So if I remember back to the maid session I think our discussion was around whether we allocated out to the three different plans to police fire miscellaneous based on how Based on how they paid in for the pension obligation bond or Or if we had um, or if we looked at just the kind of the best of the money Chose one lie to mind and that gave us the biggest financial benefit and What we did as part of the budget Was we did the allocation model because we just felt for equity That we we needed to pay down those three different plans based on how The different how the different members the city had paid into the plan So with those among the three plans We chose the amortizational lines that we thought will give us the greatest savings Or the most immediate impact so we could get those immediate savings and start doing this again Again year after year with the money that we saved But we we really thought uh, it would you know It would it would raise an equity issue if we took all of the money that we collected city-wide And paid it into One pension plan I hope that answers your question it answers my question Thank you. The only question I had is just um Confirming the process on the NOFA return the 1.2 million that will be coming back to council with what the plan is And here is the expected return on that 1.2 million investment. Yes. Okay. Thank you Any additional questions seeing none this is a public hearing. So I'll open the public hearing First speaker uh riz foxen followed by george uberte Okay I'm riz foxen and I want to thank you mayor and council members for continuing to support the roseland temporary library And for continuing to work with us creating a partnership between The city and the library. It's a powerful demonstration of what can be done I want you to understand what your 150 000 is going to do is going to pay for one year of lease And all the utilities for this new temporary library And we have signed a six-year lease with a building That's right across the street from where we are now So it's in the downtown in the heart of roseland, which is something that we're really excited about We're going to put 350 000 dollars in one time investment To upgrading the building getting more materials than we ever had before in the library Increasing the technology Buying furniture shelving etc etc And then we're going to put 700 000 a year towards operational costs And I want to remind you I mentioned it last time or one of the times I was here before that the Return on investment is 350 to 550 For every dollar that you invest so you put in your 150 000 and the return on investment for you is 520 000 525 000 excuse me For our 370 that we're putting in or 350 that we're putting in to Get the building ready to open If you'll get 1.2 million back and for every year that we put 700 000 in You're going to be getting 2.45 million and you get it. We don't You're the ones that get the return on investment So this new building it's right across the street from the old library On sabastopol road. It's a standalone building that does not have a leaky roof That has actual working cooling and heating. I mean my gosh, what more could you want and parking? So it's it's really a great spot and we're very happy with it It's going to enable us to double our hours for the roseland community Before we couldn't open in the afternoons and some things like that So they'll have more time in the in the building as well as more materials to work with and I think probably the biggest thing for me It is just another step in creating the ties between the library and the city Creating good partnership that's going to benefit not only roseland, but the whole city And I just want to thank you for doing that. Thank you Thank you, georgia baritif followed by judith. I am so Yeah, that was that was savagely boring So much so that it almost appears like no one is stealing But I disagree strongly I disagree very strongly I think that it would be asinine For anyone in this room to sit here and pretend like we're going to become more efficient in oversight By conjoining the positions of our chief financial officer and city manager You don't get more efficient in financial oversight by eliminating financial oversight positions Right the quantity and quality are different and we can't act like we don't understand that Trying to make ourselves more of financially accountable by eliminating financial accountability is ridiculous It's like trying to make a hospital more profitable by eliminating the doctors. It's an insane thing to do It's an honest face of certain thing to do And I don't believe that I need to come up here and dress it up in figures and numbers for for you to understand it Right for anyone in here to pretend like they didn't already understand it before they ever walk through that door All right, everybody in here knows what the definition of an audit is Right and everyone in here knows that we don't audit our finances Right, you can look directly at the audits ourselves or the financial statements that we produce in place of our audits And what they say is that we do not express an opinion because the limited procedures of management do not provide us with sufficient Evidence to provide an opinion or express any assurance on the figures in the financial statements Right, uh, guess what look up any financial you code you want the aicpa code of independent Accountants the aicpa code a professional conduct the government auditing standards is a nice one See if that statement squares up with what an auditor is required to do With what you are required to do with public money in terms of accountability Right, we're getting rid of positions. We're eliminating 6.5 Staff members from from finance and that's going to help us increase more people watching what you do with money Means fewer opportunities to steal it Right fewer people Looking at what happens with the money means more opportunities to steal it Right visibility Is what creates accountability Visibility and structural independence Right things that are well defined in the government auditing auditing standards that you are required to be familiar with as management Right who is responsible for presenting the financial statements of this city of this housing authority Right, none of that happens None of that happens your limited procedures do not provide auditors with sufficient evidence. That is an independence impairment Right and it makes the financial statements that this city produces illegal Right you illegally do not account for our funds. Whatever our values are whatever we want to do with our money Right doesn't matter what it is. It's not happening and that's wrong Judith I am followed by John Allen Hi again In budgets are where principles actually hit the road so Uh the discussion here is as germane as it can possibly get for the lives of Everyone in santa rosa and beyond I'm very Grateful that councilwoman julie combs has suggested that the rfps be invited So that the money that's been allocated as it stands for the homeless population Will have an opportunity to be Uh addressed and allocated by the homeless population It's been noted for quite a while that the the kind of colonial top-down organization Doesn't serve people But that people deciding their own futures and creating their destinies Is what really works There is an organization called homeless action comprised of homeless as well as those people with homes And there is saves Sonoma Applied valley system. I believe it is also a non-profit By and for folks who are homeless And it turns out that the rough estimate That there's 1.2 million Allocated as it stands and there's 1200 People who are homeless and that's probably undercounting because I don't think I was polled and I am amongst that demographic So that works out to about a thousand dollars per person I think that putting make a making a roof not leaky is worthy But I think that a great deal more can be done creatively To make structures and communities which will house people in a beautiful healthy and exemplary way So thank you very much for going forth with that and expanding your Your input to the population that needs to be served Thanks Thank you. John Allen followed by adrian lobby Uh, good afternoon, mr. Mayor and distinguished members of council I'm john allen chief chief operations officer of apm homes and a resident here in santa rosa As you review the 2019 2020 city budget I would encourage you to take a look at any additional surpluses or additional revenues That could be Placed in certain departments that may be in need Um from the ashes of the 2017 fires All departments within the city contributed to the recovery effort that we are currently seeing Some of the departments within the city have been an instrumental part of the rebuild effort That has accredited the city of santa rosa and the county of sonoma With being the blueprint for natural disaster recovery I would like to highlight the effort from planning and economic development department Resilient city rebuilding department And last but far from least the santa rosa fire department All three departments have played huge roles in working with fire survivors utilities contractors and the public Um these departments are more deserving Of any additional funding that could be allocated And if a department is not in need of funding Our fire ravaged infrastructure is There are street lights trees roads parks and vegetation that need to be tended to I would hope that the council could find a way to allocate any surplus funds To those departments or needs. Thank you. Thank you john adrian lobby Good evening adrian lobby with homeless action I want to first of all, thank you all for and including the staff for pulling out some more money for homeless services this year It's obvious you're making cuts and tightening your belt in various ways and I know this isn't easy To find to fund some new things I'm very much in support of fixing the roof at sam jones I do have questions about the rest of the use of this 1.2 million Couple of things I think that we should really look at the benefit valley senior center and not just Pour it into an overcrowded And difficult building that we have out there that's got multiple issues already I have been saying for a while that we really need to do rfps for this kind of Funds when it comes down There's a tendency and I don't blame anyone for this. I think that It's kind of natural to work with the vendors and the suppliers that you already have But we do have a tendency to give a chunk of money to catholic charities and say go for it and and you'll be fine and Our experiences is that has not been working very well So the other thing I want to say is that there is The benefit valley senior center is in a low-income transitioning neighborhood And there's a very active neighborhood group that is interested in that building and wanting the best use of it and Concerned very frankly concerned about what you might do there. I really want to encourage you to work with those neighbors Um This is some neighborhoods have the ability to do great lobbying And we really don't need to worry too much about them because they take care of themselves Other neighborhoods need active engagement and encouragement to figure out what the best needs The best use are for the strengths that they already have in their community And so I just urge you to do that and we're willing to help. Thank you so much Thank you Those are all the cards we have um, would anyone else like to address the council during this public hearing? Seeing no one move forward. I'll close the hearing Bring it back to council. Uh, why don't we start with mr. Tibbetts? You have this item and then we'll open up for comments from council I move a resolution of the council of the city of san aroza approving the budget for the city of san aroza for fiscal year 2019 and 20 the capital improvement program budget for fiscal year 2019 20 and establishing reserves for the 2018-19 fiscal year and wait for the reading of the text We have a motion and a second. So with that motion, let's bring it back to council any comments miss combs I just want to thank staff for the hard work on this. It's not been an easy process And I am grateful for each of you that you put the time in To explain things to us. It's been a long haul since october and uh, thank you very much Any other comments mr. Tibbetts? Thank you, mr Excuse me Thank you, mr. Mayor I just wanted to say that um, I really appreciated this budget process both from the staff's perspective How you presented the materials however your department had came forward not just with a need but also something willing to sacrifice And I think that gave certainly speaking for myself a really Robust look at what was possible where we could move money and what we could fund as far as priorities I also want to thank the council too For making a contribution towards the roslyn community library. I recognize with the advocates up there and our commissioners that More probably needs to be done And I am just making the informal request tonight that as the long-term financial subcommittee moves forward We take strong consideration about supporting that library If we're going to have a library there, it's a heck of a lot cheaper than owning the building And I think it's just a the right thing to do as far as Uh, the council is concerned. I also hope that we can have that discussion soon Mr. City manager about the city's role in supporting library services and I look forward to that in the months ahead Any other comments mr. Sawyer Thank you, mayor, and I do want to thank staff You know going through having gone through this a number of years ago during the recession It's never fun to cut But I would say that the the type of of reductions were made in the budget then those many years ago were not They were tough cuts But I believe the ones made this time and looking to the future and being more conservative and planning for A downturn. I think that this is we have done a better job Um staff has done a better job today during this many month process Then what happened years ago? and I think it was because the the recommendations were based in reality and I can't necessarily say that about the past because We learned some lessons about perhaps not being conservative enough And I think that this is this is a a budget that I can stand behind It's a budget that that has been tweaked a bit by the council and I think that those tweaks were responsible I especially want to point out the one in in planning and economic development I'm very pleased to see given given the magnitude of a general plan amendment or general plan redo More update. Uh, it's a it is a an amazing amount of work And I think that that having a staffer dedicated to that is really smart I'm pleased to see that And I am hoping that as we move into this This year and years following if if if there are needs and any one of those in any one of these Departments that we are where we have cut and we're not finished yet That we are able to identify those needs more rapidly than we did 11 years ago when we were cutting cutting positions So I thank you for this. It was tough work. I think the council as well I think that the the adjustments that were made to the to the recommendations were thoughtful And I just you know, thank you for your very very hard work. It's it's again. It's not easy. It's not easy for us It's not easy for the community. We are a service provider And one of the only ways that we can save money Unfortunately is to reduce service And our our staff is going to be taxed To you know as they always are Because they want to do an excellent job and they do an excellent job And we can all be very proud of what they do and it's going to be harder for them for the next two years I'm looking forward to a change in that direction when our Our our numbers our incomes are going up as opposed to going down But I appreciate you planning for some cloudy days Yes, let me Thank you, mayor I echo my colleagues sentiments I Want to let you know that this is not about the budget in particular, but that I'm uncomfortable voting on the budget because it has so many contingencies not just on the executive team reorganization, but Issues around the structure of the parks and services that I feel that it's only fair for the public to weigh in On that prior to approving a budget that is heavily dependent on a reorganization So if our council chooses to go ahead and vote at this time I will be abstaining But want to express my sincerest appreciation for all of the work that you did prior to My joining the council and that this is not a referendum against the budget as as presented today. Thank you Mr. Vice mayor Just as a quick note, mr. Mayor I will be voting on the budget But in the event that the reorg or something goes sideways with that We do have the option of reconsideration to pull this Back up to continue to work on it. So i'll be voting on it now, but if something goes Goes catty wampus. You should expect to see that I was almost with all the thanks going I want to add my thanks But it's always interesting having these comments before we actually vote because I think there may be some more work To be done here But having been from a staff perspective know the amount of work there and check the way you and your team have presented it To us not only during these public hearings. We've had closed sessions We've had one-on-one meetings smaller groups, and I know that's all time and effort But the intent is so that we understand what we're actually voting on I really appreciate those efforts because this type of stuff doesn't happen by accident So I really applaud all of your efforts So are there any other comments? So I think we'll have a couple different motions here But we have a motion and a second your votes, please And that passes with five eyes and what an abstentia miss flaming abstaining Mr. Tibbets, I think you have a couple of resolutions on this I move a resolution of the council of the city of san ariza authorizing public facilities improvement fees funded P5th projects contained within the city budget and the capital improvement program document continue to replace the p-fip map And list on file with the n-city engineer and making certain findings with regard to sequel requirements For the adoption of the city budget And wait for the reading of the text second We have a motion a second. Are there any comments on that motion? Seeing none your votes, please And that also passes with five eyes and what an abstentia council member flaming abstaining I move a resolution of the council of the city of san ariza setting the stormwater utility budget And determining the amount of eligible funding that has been received from the flood control zone 1a benefit assessment fiscal year 2018-19 and based there on setting the stormwater assessment per equivalent residential unit for the fiscal year 2020 wait for the reading of the text second We have a motion a second any comments Seeing none your votes, please And that passes five eyes with one no council member combs voting no I move a resolution of the council of the city of san ariza mending the city classification and salary Oh, sorry getting ahead of myself Nope So mr. City manager, I saw that as part of this item. Does this item need to be addressed now or Shelly entertain if someone else would like to vote Are you suggesting you're not willing to make the motion for 15.1 subsection four? No, I'm sorry, mayor I'm happy to make it but this looks like this is following 14.1 is it not it's talking about the reclassification, but this is part of the budget is this what we're getting at here okay So I guess I do understand why it feels a little patty wampus, but uh I move a resolution of the council of the city of san aroza May we do this one? Do we have the ability to do this one? after The 14.1 discussion if we can let him finish he's making the motion and see if we get a second We'll just play it out I move a resolution of the council of the city of san aroza amending the city classification and salary plan and authorizing the city manager to implement these changes included in the fiscal year 2019 2020 budget second The motion is second any further discussion Mr. Vice mayor Yeah, no, I just wanted to make a quick comment that this just because we passed the the budget with those positions doesn't mean that it Is automatically going to be Filled just as we put it in place the hiring freeze where those positions sat on on the budget But we never actually ended up having to fill them. That's essentially what we're doing here With item 14.1 will be coming back and we'll be clearing that up And so that's why I mentioned reconsideration if we needed to come back and reconsider portions of the budget to be able to alter What happens with the position plan? That's an option for us so long as you voted in the majority But I don't I don't think that there's a big concern in setting our budget and then doing our staffing plan accordingly after the fact Ms. Combs, do you have a question or comment? I was just hoping that we could do this one vote after but we have the We have the second so it goes Any other comments your votes, please And that passes with four eyes one no from council member combs in one abstention from council member fleming Thank you So now we will move back to item 14.1 mr. McGlynn I know item 14.1 Report amendment to the city classification and salary plan authorizing the city manager to to implement various classification changes Amy rieve director of human resources presenting Good evening mayor and council members Before you this evening is a request to authorize an amendment to the city classification and salary plan We'll updating the position description and salary ranges of various classifications And eliminating the positions of deputy city manager and director of community engagement We will discuss how these functions will be realigned as we progress through the presentation As you are aware city staff have been grappling with a structural budget deficit And have been asked to present a strategy to reduce costs and streamline the organization A reorganization plan has been recommended which will elevate three existing department heads To assistant city manager and allow for more efficient administration and oversight throughout the city slide three highlights The suggested changes and