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[Community Workshop Public Meeting ]
YOU'RE HERE.WE HAVE A PRESENTATION TONIGHT AND OVERVIEW OF THE BUDGET.
UM, I, OUR FINANCE DIRECTOR, STEPHANIE CINEMA, AND THEN WE'RE GONNA, UM, TURN TO THE, THE MAIN PART OF THE MEETING, WHICH IS WE WILL BE WELCOMING OF QUESTIONS, BUT TO BEGIN, WE'RE GOING TO ASK STEPHANIE TO GIVE US AN OVERVIEW.
SO JUST TO START OFF WITH A CITY-WIDE PERSPECTIVE, THE PROPOSED BUDGET INCLUDES REVENUE OVER 126 MILLION OF COMBINED ALL COMBINED FUNDS, WHICH INCLUDES PROPERTY TAX SALES, TAX REVENUE FROM OTHER AGENCIES.
UM, PROPERTY TAX STILL REMAINS THE CITY'S LARGEST REVENUE SOURCES AND IS PROJECTED TO BE NEARLY 45 MILLION SALES TAX IS THE NEXT LARGEST REVENUE SOURCE AND HAS BEEN INCREASING SINCE FISCAL YEAR 2021 AND IS PROJECTED TO BE OVER 23 MILLION IN THE NEXT FISCAL YEAR ON THE EXPENDITURE SIDE, TOTAL EXPENDITURES FOR ALL BUDGETED FUNDS ARE ESTIMATED TO BE OVER 128 MILLION MANY FUNDS MAKE UP THE TOTAL BUDGET AMOUNT AND THE LARGEST BEING IN THE GENERAL FUND, WHICH IS NEARLY 64 MILLION OR 50% OF THE CITY'S BUDGET.
TURNING OVER TO THE GENERAL FUND.
THE GENERAL FUND PROPOSED BUDGET HAS A NET CHANGE IN FUND BALANCE OF OVER 500,000.
AT THE END OF THE FISCAL YEAR, WE'RE EXPECTED TO HAVE AN ENDING FUND BALANCE OF OVER 24 MILLION, WHICH IS WELL OVER THE RESERVE REQUIREMENT OF 10.8 MILLION.
THIS CHART DISPLAYS THE FUND BALANCE OVER THE PAST SEVEN YEARS, THE BUDGET HAS BEEN CONSERVATIVELY DESIGNED TO CONTINUE TO CONTINUE TO ADEQUATELY MAINTAIN THOSE RESERVES.
TOTAL JENNIFER AND RUNNY REVENUE ARE PROTECTED TO BE OVER 79 MILLION, WHICH IS A 17.8% INCREASE OVER THE ORIGINAL BUDGET FOR THIS FISCAL YEAR.
THIS IS LARGELY DUE TO AN INCREASE IN PROPERTY TAX OF OVER $780,000 AND AN INCREASE IN SALES TAX REVENUE OF OVER 7.2 MILLION FROM LAST YEAR'S ORIGINAL BUDGET.
THIS CURRENT YEAR, WE'VE SEEN A LARGE RISE IN SALES TAX, WHICH HAS BEEN CONSISTENT WITH LAST FISCAL YEAR.
AND I BELIEVE THE ORIGINAL BUDGET HAD ASSUMED THAT WE WOULD STILL BE EXPERIENCING, UM, THE DOWNTURN FROM THE PANDEMIC.
HOWEVER, WE HAVE NOT SEEN THAT AT ALL.
AND WE'VE ACTUALLY UTILIZED THE REVENUE ESTIMATES FROM HDL AS ADVISED BY OUR FINANCIAL RECOVERY PLAN AND BROUGHT UP THOSE ESTIMATES TO WHAT YOU SEE BEFORE YOU.
SO ON THIS CHART, THE TOP BAR IS THE PROPOSED BUDGET FOR NEXT FISCAL YEAR, RIGHT BELOW IT IS WHERE WE THINK WE WILL END THIS FISCAL YEAR.
AND THEN THE THIRD LINE DOWN, AS YOU CAN SEE AS THE ORIGINAL BUDGET, WHICH IS SIGNIFICANTLY LESS THAN WHAT WE ARE EXPERIENCING THIS FISCAL YEAR, MOVING OVER TO EXPENDITURES.
THE GENERAL FUND IS PROJECTED TO HAVE EXPENDITURES OF OVER 64 MILLION.
THIS IS A NINE POINT MILLION DOLLAR INCREASE FROM THE CURRENT FISCAL YEAR BUDGET.
HOWEVER, IT'S A DECREASE OF NEARLY 6 MILLION FROM THE PRIOR YEAR.
THIS DECREASE IS DUE MAINLY TO THE UAL PAYMENT TO THE CALPERS AS A RESULT OF THE PENSION OBLIGATION BONDS.
THE CITY ISSUED IN 2020, MOST OF THE GENERAL FUND EXPENDITURES GO TO SALARY AND BENEFITS, WHICH CUMULATES UP TO 79% WITH THIS BUDGET EXPENDITURES WERE ANALYZED OVER ALL EXPENSE ACCOUNTS AND BROUGHT DOWN TO ACTUAL TRENDS RATHER THAN PRIOR YEAR BUDGET AND OUR MOUTHS.
UM, THIS, UM, WHILE THERE WERE INCREASES IN DECREASES IN DIFFERENT LINE ITEMS, THE OVERALL IMPACT WAS GENERALLY POSITIVE FOR THE GENERAL FUND.
A SIGNIFICANT INCREASE WAS ALSO MADE TO SALARIES AND BENEFITS PRIMARILY DUE TO AN INCREASING OVERTIME BASED ON PRIOR YEAR ACTUAL TRENDS.
THE SLIDE HERE SHOWS THE TRENDS OF THAT OVERTIME OVER THE YEARS.
UM, THIS YEAR WE'RE PROJECTING TO BE ABOUT 6.2 MILLION.
AND WHEN WE ADD IN THE INCREASES FROM THE MOU, UM, JUST KEEPING IT FLAT AND ADDING THAT, UH, SALARY INCREASE, WE BROUGHT IT TO 6.4, UM, TO BE MORE REALISTIC WITH THE TIMES THE ORIGINAL BUDGET HAD 3.2 MILLION, BUT AS YOU CAN SEE FROM PRIOR YEAR TRENDS, THAT'S NOT A REALISTIC EXPECTATION FOR THE SERVICE LEVELS.
WE'RE TRYING TO PROVIDE THE MAJORITY OF THIS OVERTIME COMES FROM FIRE AND FOLLOWED BY POLICE.
SOME CHANGES IN SERVICE LEVELS THAT WE INCORPORATED INTO THIS BUDGET IS TO BRING RECREATION AND COMMUNITY SERVICE PROGRAMS BACK TO PRE PANDEMIC LEVELS.
WE'VE ALSO ADDED FUNDING FOR SPECIAL EVENTS, SUCH AS THE SPRING FESTIVAL
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AND 4TH OF JULY.WE ARE ALSO PLANNING TO REISSUE THE QUARTERLY NEWSLETTER TO INFORM ENGAGE RESIDENTS.
WE'VE ALSO INCLUDED FUNDING TO INCREASE MAINTENANCE OPERATIONS, UM, SPECIFICALLY BY UPPING THE TREE TERM CYCLE FROM SEVEN TO FIVE YEARS.
AND ADDITIONALLY WE'VE ADDED 17 MILLION AND PROJECTS FOR THE NEXT FISCAL YEAR, UM, WHICH MOST OF THESE ARE FUNDED BY SPECIAL REVENUE FUND SOURCES.
AND WE'LL TOUCH ON A LITTLE LATER.
THE BUDGET ALSO INCLUDES A, UH, OR A BUDGET FOR THE HEALTH DEPARTMENT, WHICH IS, UH, SUPPOSED TO ESTIMATE TO BE SELF-SUPPORTED AND OPERATE AS AN ENTERPRISE FUND.
PROPOSED CHANGES TO STAFFING INCLUDE THE ADDITION OF 12 MAINTENANCE POSITIONS.
THESE POSITIONS ARE FULLY FUNDED BY A SPECIAL REVENUE FUNDS FROM THE GAS TAX IN SEWER.
SO THERE ARE NO GENERAL FUND, UH, FUNDING GOING TOWARDS THESE POSITIONS.
AND THEN IN, UH, PUBLIC SAFETY, WE ARE PROPOSING TO ADD ONE FULL-TIME NON-SWORN PUBLIC SAFETY POSITION, AND THEN TWO PART-TIME POSITIONS IN HRM PLANNING.
WE ALSO REMOVED ONE PART-TIME POSITION AND FINANCE AND, UM, PROPOSE TO UPGRADE ONE OTHER PART-TIME POSITION TO FULL-TIME FOR AN OVERALL NET CHANGE OF 14 NEW POSITIONS IN THE BUDGET.
THE LONG RANGE FINANCIAL FORECAST WAS UPDATED IN MARCH AND PRODUCTIVE GENERAL FUND BUDGET DEFICITS FOR EACH YEAR IN THE FORECAST.
ADDITIONALLY, THE GENERAL FUND RESERVES WERE ANTICIPATED TO BE DEPLETED TO 10% OR 8 MILLION BY FISCAL YEAR 2027.
THE FORECAST HAD RECOMMENDED STRUCTURAL CHANGES TO INCREASE REVENUES AND OR DECREASE EXPENDITURES IN THE FUTURE YEARS.
THAT'S WHEN WE DEVELOPED THE BUDGET, WE PUT TOGETHER SEVERAL CHANGES IN ORDER TO INCORPORATE THOSE RECOMMENDATIONS.
UM, THE FIRST OF WHICH IS WE REMOVED FROZEN NON-SWORN PERSONNEL AND POLICE.
THESE POSITIONS HAD BEEN FROZEN FOR THE LAST FEW YEARS, BUT THE FINANCIAL FORECAST HAD ASSUMED THEY WOULD BE, UH, FILLED WITH THE REMOVAL OF THOSE EIGHT POSITIONS TOTAL THAT HELPED BRING THE BUDGET INTO BALANCE AND HELPED US ALIGN.
WE ALSO RE ASSUMED REINSTATEMENT OF THE FALSE ALARM PROGRAM AND ASSOCIATED REVENUE.
AND THEN AS I MENTIONED EARLIER, WE ADJUSTED TO PRIOR YEAR ACTUALS ACROSS THE BOARD, BOTH ON THE REVENUE AND THE EXPENDITURE SIDE.
SO THIS MEANT SCRUBBING EXPENDITURE ACCOUNTS WITH BUDGETS THAT MAY HAVE BEEN DOUBLE OR TRIPLE WHAT THEY HAVE NORMALLY SPEND AND BRINGING THEM BACK DOWN TO WHAT THE REALITY AND ON THE FLIP SIDE, INCREASING OTHERS WHERE THEY'VE ALWAYS OVERSPENT THE BUDGET TO WHAT IS A REALISTIC NUMBER OF WHAT YOUR OPERATIONS SHOULD BE.
IN ADDITION TO THAT, THE REVENUE BASES WERE RAISED, UM, BASED ON THE PROJECTIONS OF SALES TAX.
SO AT THE BEGINNING OF MARCH, WHICH WAS REALLY FEBRUARY IN ORDER TO GET IT BEFORE COUNCIL, UH, SALES TAX NUMBERS WEREN'T FULLY IN YET, OR NOT IN AS MUCH AS WE'D SEEN TO DATE.
AND SO LOOKING AT THOSE MORE CLOSELY AND GETTING WITH HDL AND ON OUR QUARTERLY MEETINGS, UH, WE RAISED THOSE BASES TO WHAT WE'VE SEEN, NOT JUST THIS FISCAL YEAR, BUT LAST FISCAL YEAR.
AND JUST RAISING THAT BASE ALONE, EVEN WITH A CONSERVATIVE INCREASE, BROUGHT US INTO A BETTER OUTLOOK FOR THE FUTURE YEARS.
UM, THE SAME CAN BE SAID FOR A TRANSIENT OCCUPANCY TAX AND PERMIT REVENUE.
WE ARE PROJECTING SOME OF THOSE BUILDING PERMIT REVENUE TO STAY CONSISTENT BASED ON THE CONSTRUCTION WE'RE SEEING IN THE PROJECTS GOING ON.
UM, HOWEVER, BECAUSE OF THAT QUICK SHIFT, WE HAVEN'T RECOMMENDED ANYTHING, UM, IN THE PROPOSED BUDGET THAT WOULD BE SIGNIFICANT REOCCURRING OBLIGATIONS.
SO WE WERE VERY CONSERVATIVE WHEN WE ADDED ANY POSITIONS TO THE GENERAL FUND, AS YOU CAN SEE, WE ADDED POSITIONS TO THE, UM, THE SPECIAL REVENUES, BUT WHEN IT CAME TO THE GENERAL FUND, WE TRIED TO BE CONSERVATIVE THAT, UM, TOUCHING ON THE CAPITAL IMPROVEMENT PROGRAM, THE PROPOSED CIP HAS OVER 94 MILLION AND PROJECTS.
46 MILLION OF THAT IS CURRENTLY UNDERWAY FROM THIS YEAR AND PRIOR YEARS, THE MAJORITY OF THAT, WHICH IS FUNDED BY OUR ARPA OR COVID RECOVERY FUNDS NOT BEING ABOUT 20 MILLION.
UM, AND THEN NEXT YEAR FOR THE PROPOSED BUDGET, WE HAVE ABOUT 17.7 MILLION, WHICH IS SPREAD ACROSS DIFFERENT IMPROVEMENTS TO OUR FACILITIES, WHICH ARE MUCH, UM, NEED FOR UPGRADES, UM, AND PARKS FOLLOWED BY STREETS, TRAFFIC, AND SEWER.
MOST OF OUR FUNDING FROM THE CIP HAS COME FROM GRANTS.
THE MAJORITY OF THAT BEING THE ARPA FUNDING, WHICH YOU SEE THE LARGEST LINE THERE, WHICH IS THEN FOLLOWED BY GENERAL FUND.
AND THEN, UH, WE ARE ANTICIPATING SOME PUBLIC PRIMARY PRIVATE PARTNERSHIPS WITH DEVELOPERS.
THE PROPOSED BUDGET SCHEDULE INCLUDE IT STARTED OFF WITH A BUDGET SURVEY, WHICH IS CURRENTLY STILL UP ONLINE AND AVAILABLE FOR RESIDENTS TO COMPLETE.
AND THEN, UH, THE, UH, LONG RANGE FINANCIAL FORECAST
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WAS INCLUDED IN APRIL FOR COUNCIL CONSIDERATION AND FILING AND PROPOSED BUDGET PRESENTATION WAS LAST NIGHT.WE'RE NOW AT THE FIRST BUDGET WORKSHOP.
WE WILL HAVE ANOTHER BUDGET WORKSHOP ON MAY 4TH, WHICH WILL BE THE SAME PRESENTATION, JUST OPEN FOR MORE FEEDBACK.
AND THEN, UH, WE PLAN TO TAKE ALL THE FEEDBACK WE GET FROM THESE MEETINGS AND FROM THE BUDGET SURVEY AND UPDATE COUNCIL ON MAY 17TH FOR ANY, UH, DIRECTION OR FEEDBACK.
AND THEN, UH, WE PLAN TO TAKE THE PROPOSED BUDGET FOR COUNCIL CONSIDERATION FOR ADOPTION ON JUNE 7TH AND OUR FISCAL YEAR STARTS JULY 1ST.
UM, ONE THING ALSO NEW THIS YEAR IS THE LITTLE HANDOUT YOU ALL RECEIVED, WHICH IS JUST A LITTLE ONE PAGER, UM, THAT, UM, IS AVAILABLE ALSO ONLINE.
AND IN THAT I DO WANT TO ALSO POINT OUT THAT, UM, THE BUDGET BRIEF THAT YOU HAVE IN YOUR HANDS TONIGHT, THE PROPOSED BUDGET AND THIS PRESENTATION IS ALL ONLINE AS WELL AS THE LONG RANGE FINANCIAL FORECAST.
UM, SO THAT CONCLUDES MY PRESENTATION AND THIS OPENS UP TWO QUESTIONS, WHICH WE PLAN TO BE VERY, UM, INFORMAL WITH.
BUT WE DO ASK THAT WE, BECAUSE WE'RE BROADCASTING THIS EVENT THAT WE WILL PASS AROUND THE MIC SO THAT IT CAN BE CAPTURED ONLINE AS WELL.
SO WITH THAT, THERE ARE ANY QUESTIONS.
UM, WE'LL ASK MARIA LUISA TO CIRCULATE WITH THE MICROPHONE.
IF WE COULD TAKE THEM ONE AT A TIME, I'M HOPING PEOPLE WILL HAVE QUESTIONS FOR, UM, FOR US TONIGHT ABOUT THE BUDGET AND WE CAN, UM, PAY ATTENTION TO ALL OF THOSE, UM, QUESTIONS DIRECTLY.
ANYONE WANT TO BE FIRST? IF WE COULD JUST HAVE, HEY STEVE, CAN WE HAND YOU THE MICROPHONE AND OKAY, THANKS.
YEAH, I WOULDN'T WALK TOO FAR.
YOU'RE GOING TO BE PASSING THESE AROUND OR GRAB THE SECOND MICROPHONE.
SO I MISSED THE FIRST COUPLE OF SLIDES, SO I'M NOT GOING TO ASK QUESTIONS YET ON THAT, BUT, UM, THE, THE QUESTION, STEVE, IF YOU LIKE, I DON'T, I MAYBE IN A MINUTE, I DON'T WANT TO WASTE OTHER PEOPLE MAY ASK THE QUESTIONS THAT I'LL FIGURE IT ALL OUT.
UM, THE, THE BIGGEST QUESTION THAT I WANTED TO KNOW WAS HEALTH DEPARTMENT.
DID WE COVER THAT? OKAY, SO I'LL SKIP THAT THEN.
OH, WAS IT BRIEF? OH, OH, SO WE HAD A TITLE, BUT NO REAL DISCUSSION.
SO I'D LIKE TO KNOW WHERE WE'RE AT WITH THE COSTS FOR THE HEALTH DEPARTMENT.
IF THERE'S A SLIDE THAT WOULD BE GREAT.
UM, WHERE ARE WE AT WITH THE DOLLARS WHAT'S BEING SPENT? WHAT HAS BEEN SPENT, WHAT THE BUDGET IS? UM, WHAT WE ANTICIPATE THE BUDGET IS LONG RANGE, FINANCIAL PLAN ON THE HEALTH DEPARTMENT.
WHAT WE SPENT SO FAR, AND THEN THE NEXT QUESTION IS, UM, WHAT IS THE DEFINITION OF A LONG RANGE FINANCIAL PLAN FOR THE CITY? CAUSE I KNOW IT WAS MENTIONED IN THERE, BUT EVERYONE HAS A DIFFERENT OPINION OF WHAT LONG RANGE IS.
SO WHAT IS OUR LONG RANGE TIMELINE? THE LONG RANGE FINANCIAL PLAN IS TO ANSWER THAT ONE QUICKLY WHILE I'M PULLING UP THE HEALTH DEPARTMENT IS, UH, OVER THE SPAN OF FIVE YEARS.
AND THAT IS ALSO UP ONLINE AS WELL, UH, IN THAT AVAILABLE FOR PUBLIC TO REVIEW AS WELL.
AND I'M ALMOST AT THE HEALTH DEPARTMENT BUDGET.
SO IN TERMS OF WHAT WE'VE SPENT TO DATE, I DON'T HAVE THOSE NUMBERS TO NIGHT.
UM, WE'VE EXECUTED THE PUBLIC SERVICE PROFESSIONAL AGREEMENT FOR THE START-UP OF THE HEALTH DEPARTMENT.
AND THAT WAS AROUND A HUNDRED THOUSAND, I BELIEVE.
AND THEN WE'RE WORKING TO THE NEXT PHASE OF THAT, WHICH ARE BOTH FUNDED BY ARPA FUNDING.
UM, THIS BUDGET, THOSE ARE INCLUDED IN OUR CIP BUDGET.
UM, WHAT YOU SEE UP ON THE SCREEN IS THE PROPOSED BUDGET FOR THE HEALTH DEPARTMENT NEXT FISCAL YEAR.
AND IT'S THE OPERATIONAL SIDE OF IT.
UM, AND THESE FIGURES WERE PROVIDED TO US BY OUR CONSULTANT WHO IS WORKING WITH US ON THIS.
SO THERE IS A WHOLE, THERE'S A PAGE ON THERE THAT OKAY.
IN A FUND AND IT'S, IT'S GOING TO BE A SEPARATE FUND, SO IT CAN BE PROVIDED ANY AT ANY TIME.
SO THE ARPA, WHICH IS THE AMERICAN RESCUE PLAN, RIGHT? UH, THAT THE WAY I UNDERSTAND IT IS ONE-TIME FUNDS THAT WE CAN ONLY USE ONE TIME.
IT'S NOT SOMETHING THAT WE'RE BUDGETING.
SO THE ONE-TIME FUNDS, WHAT DID THAT SPECIFICALLY COVER? SO THEY'RE GOING TOWARDS THE ONE-TIME STARTUP OF THE HEALTH DEPARTMENT.
SO EVERYTHING, UM, INCLUDED IN
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THE ASSESSMENT OF IT.AND I KNOW OUR COUNCIL GOALS KINDS OF GO, GOES IN DEEPER WITH THAT.
AND I CAN ACTUALLY PULL UP THE COUNCIL GOALS THAT OUTLINE THAT.
AND WHILE YOU'RE DOING THAT, ALL I'LL ASK A FOLLOW-UP.
SO THE ARPA FUNDS WENT THROUGH THE ONE-TIME STARTUP AND THAT WAS ABOUT HOW MUCH MONEY OH, YOU RECEIVED, UH, OVERALL OR JUST FOR THE, JUST FOR THE HEALTH DEPARTMENT.
WE GOT LIKE 20 MILLION, I THINK, OVERALL, CORRECT.
SO WE GOT ABOUT 20 MILLION OVERALL, UM, AND WE JUST STAYED CORRECT ME IF I'M WRONG.
A WE DID A BUDGET AMENDMENT RECENTLY FOR THE NEXT PHASE FOR THE HEALTH DEPARTMENT THAT INCLUDES THE COMMUNITY HEALTH NEEDS, ASSESSMENT, COMMUNITY HEALTH IMPROVEMENT PLAN, AND FEASIBILITY STUDY, UM, AND TO PREPARE A MEMORANDUM, MEMORANDUM OF UNDERSTANDING OR CONTRACT WITH OTHER ORGANIZATIONS FOR THINGS THAT ARE CONTRACTED OUT.
UM, SO THAT'S WHAT WE'RE KIND OF ENCOMPASSING IN THE INITIAL START-UP, WHICH IS WHAT'S GOING TO BE FUNDED BY ARPA.
BUT THEN WHEN WE LOOK AT THE REGULAR OPERATING THAT WE'VE INCLUDED IN A SEPARATE FUND IN ITSELF.
SO AGAIN, HOW MUCH OF THE ARPA FUNDS DO WE THINK WE'VE SPENT SO FAR AMERICAN RESCUE FUNDS ON THE ONE-TIME STARTUP IS THAT HUNDREDS OF THOUSANDS, MILLIONS WE'VE ONLY COMMITTED THE HUNDRED THOUSAND, BUT WE'RE LOOKING AT DOING A CHANGE ORDER OR A PROPOSAL FOR THE SECOND PHASE, WHICH WE'VE INCLUDED THE BUDGET FOR, BUT WE HAVEN'T SPENT THOSE DOLLARS YET TOWARDS THAT AMOUNT, JUST OUT OF CURIOSITY, THAT AMOUNT, I DON'T KNOW, OFF THE TOP OF MY HEAD, BUT I KNOW WHERE I CAN GET IT ACTUALLY OFF OF HERE BECAUSE IT WAS INCLUDED IN THE MID YEAR FINANCIAL REPORT, 500,000 WAS ADDED TO THE BUDGET.
SO WE'RE AROUND 600,000 FOR TOTAL, FOR THE HEALTH DEPARTMENT THAT HASN'T BEEN, THAT'S JUST BUDGETED.
WE HAVEN'T COMMITTED THOSE FUNDS IN THE CONTRACTUAL FORM YET JUST ALLOCATED RIGHT NOW.
UM, AND PSA, I'M ASSUMING IT'S NOT A PUBLIC ANNOUNCEMENTS.
I'M ASSUMING WHAT DOES PSA STAND FOR? PROFESSIONAL SERVICE AGREEMENT.
UH, I KNEW IT WAS SOMETHING DIFFERENT THAN WHAT I THOUGHT IT WAS THE, SO A HALF A MILLION DOLLARS RIGHT NOW OUT OF THE ARPA, THE RESCUE PLAN IS GOING TOWARDS W WELL IT'S HALF A MILLION ALLOCATED AT A HUNDRED THOUSAND.
THEY'VE ALREADY SPENT THE THAT'S GOING BASICALLY TO FIND OUT THE LONG RANGE OR THE, THE FISCAL FEASIBILITY STUDY.
IS THAT WHAT I'M UNDERSTANDING? THIS IS GOING TO PAY FOR THE FEASIBILITY STUDY.
IT INCLUDES THE NEEDS ASSESSMENT, HEALTH PLAN AND FEASIBILITY STUDY IN SIMILAR STUDIES THAT MAY BE REQUIRED BY THAT, UH, PUBLIC HEALTH ACCREDITATION BOARD AND, AND SO FAR, WHAT, WHAT OF THOSE THINGS HAS BEEN REQUIRED BY THEM? AND WHAT ARE WE DOING AS A CITY THAT MAY BE A CITY MANAGER QUESTION? WELL, THIS IS IN ANTICIPATION OF WHAT THE CALIFORNIA DEPARTMENT OF PUBLIC HEALTH WILL REQUIRE.
THEY ARE STILL WORKING THROUGH CDPH, A PROCESS TO HAVE A FORMAL APPLICATION BY WHICH THIS CITY OR ANY CITY COULD APPLY.
AND THEN THEY'RE GOING TO ISSUE EMERGENCY TEMPORARY REGULATIONS THAT WOULD GOVERN WHAT THE STANDARDS ARE BY WHICH YOU'D APPLY.
WHAT WE'RE ANTICIPATING ARE THE THINGS THAT ARE LISTED HERE, BUT THIS IS REALLY JUST A BEST ESTIMATE BASED ON WHAT WE'VE HEARD FROM THEM.
TO THIS POINT, WE'RE MEETING WITH THEM ABOUT EVERY THREE WEEKS.
THE NEXT ONE IS COMING UP IN A COUPLE MORE, BUT THE, THE, THE MAIN ELEMENTS THAT ARE CONSISTENTLY, UM, ANTICIPATED ARE A FULL-FLEDGED COMMUNITY HEALTH NEEDS ASSESSMENT, AND THEN ITS COMPANION DOCUMENT, WHICH IS THE COMMUNITY HEALTH IMPROVEMENT PROGRAM.
THERE ARE GOING TO BE SOME OTHER REQUIREMENTS, UM, DIRECT COORDINATION WITH THE CITY'S DISASTER PLANS, FOR EXAMPLE, WHICH MIGHT REQUIRE THAT THE CITY GETS DISASTER PLANS IN SHAPE, BUT IT'S THE INTENTION THAT ALL OF THOSE STUDIES WOULD BE COVERED UNDER THIS ALLOCATION.
WE WON'T KNOW UNTIL CDPH, YOU KNOW, PROMULGATES, THESE REGULATIONS ISSUES, THESE REGULATIONS FOR PUBLIC VETTING AND THEN ADOPTS THEM.
UM, AND THEN THAT CONTRACT WILL BE PLACED ON A CITY COUNCIL AGENDA FOR THEIR, THEIR REVIEW AND CONSIDERATION.
SO HOW MUCH MONEY HAVE WE SPENT SO FAR ON CONSULTING AS WELL? WELL, THE FIRST CONTRACT WAS A HUNDRED THOUSAND DOLLARS.
WE WERE ABOUT $98,000 IN IT, AS I RECALL.
AND SO IT, THAT CONSULTING IS WITH WHO AT THIS TIME IS THAT TRANS TECH WITH TRANS TECH.
SO WHO'S THE DOCTOR THAT WE'RE DOING STEPH AND I I'M GOING TO MURDER HIS NAME.
SO I'M JUST GOING TO LET YOU MURDER IT FOR ME.
SO ARE WE PAYING HIM THEN? NO.
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ANYTHING, CORRECT.HE'S WORKING FOR FREE, CORRECT? WITH THE HOPES OF POPULAR TO BE SOMETHING.
SO TRANSTECH WE'VE PAID A HUNDRED THOUSAND DOLLARS FOR, TO THEM SO FAR JUST SHY OF IT.
I'M THINKING I'M A BEAT THIS ONE TO A PULP FOR A MOMENT UNTIL I COME UP.
SOME OTHER QUESTIONS, I'LL LET SOMEONE ELSE TALK.
I WASN'T CLEAR TO ME WHEN YOU WERE TALKING WHERE THE CITY IS GOING RELATIVE TO THEIR LONG RANGE PLAN.
IT WAS CLEAR IN THE LONG RANGE DOCUMENT THAT THERE'S AN EXPECTATION THAT THERE WILL BE DEFICIT SPENDING ON KIND OF A CONTINUOUS BASIS FOR A FEW YEARS AND TILL THE RESERVE IS DEPLETED.
I, UH, WHICH IS CONSISTENT WITH THE PAST PRACTICE.
UH, THE, THE QUESTION IS I, I SAW A SLIDE THAT SAID THAT THERE WERE A FEW, WHAT LOOKED LIKE MINOR CHANGES MADE TO TRY TO DEAL WITH THAT, BUT THERE DIDN'T SEEM TO BE ANY OVERALL PLAN TO DEAL WITH THE CONTINUOUS DEFICIT SPENDING.
SO JUST BY REMOVING, LIKE YOU SAID, THOSE EIGHT POSITIONS THAT WE REMOVED FROM THE BUDGET THAT WAS OVER A MILLION THERE, AND THEN RAISING THE SALES TAX BECAUSE THE SALES TAX INCLUDED IN THE LONG RANGE, FINANCIAL PLAN WAS SIGNIFICANTLY LESS.
IT WAS BASED ON MORE OF WHAT WE WERE SEEING DURING THE PANDEMIC, UM, THAN WHAT WE'RE SEEING TODAY.
AND SO THOSE NUMBERS HAVE BEEN RAISED IN THE CURRENT BUDGET.
SO IF WE WERE TO UPDATE THIS LONG RANGE FINANCIAL FORECAST, NOW WE WOULD SEE A DIFFERENT OUTCOME.
ARE YOU SAYING THAT THE SALES TAX INCREASE IS ENOUGH TO COVER THE DEFICIT SPENDING? I THAT'S CORRECT.
THAT'S WHAT I WAS TRYING TO CORRECT.
THAT'S TH THAT'S THE PLAN SALES TAX INCREASE WE'LL COVER IT.
WELL, THERE'S ALSO OTHER REVENUE THAT INCREASED CREASE, BUT SALES TAX WAS THE MAJORITY OF THE INCREASE THAT WE'RE SEEING.
AT LEAST I DON'T HAVE ALL THE NUMBERS IN MY HEAD, BUT IT SEEMS TO BE AT, IF IT IS TRULY A $7 MILLION INCREASE, THAT'S A HISTORICALLY VERY HIGH COMPARED TO EVERYTHING THAT'S HAPPENED IN THE PAST.
UH, I MEAN EVERYTHING PRE PANDEMIC, YOU KNOW, FOREVER.
AND DO YOU HAVE AN EXPLANATION ON WHY IT'S SO HIGH? SO IT STARTED TO GO UP IN 2021.
SO WE SAW IT DECLINE DURING THE HEIGHT OF THE PANDEMIC.
UH, BUT LAST FISCAL YEAR, IT WAS OVER 20.
LET ME PULL UP THAT SLIDE ON HERE.
SO I'M LOOKING AT NUMBERS INSTEAD OF, UH, THE BUDGET.
SORRY, I HAVE SO MANY, WELL, I'M NOT DISPUTING THAT THE NUMBER'S GONE UP.
I WAS TRYING TO GET OUT WHY, UH, I REMEMBER MYSELF GETTING UP BEFORE THE COUNCIL ABOUT A YEAR AGO SAYING THE BUDGET WAS UNDERESTIMATING PROPERTY TAX AND SALES TAX.
SO I KNEW THE NUMBER WAS NOT BUDGETED PROPERLY AT A YEAR AGO, BUT THIS NUMBER THAT YOU JUST MENTIONED, $7 MILLION IS WAY ABOVE WHAT I EXPECTED.
AND I DON'T HAVE AN EXPLANATION FOR WHY IT'S WAY ABOVE.
AND THAT'S WHAT I'M REALLY ASKING.
WHY NOT, NOT THAT THE NUMBER HAS GONE UP THAT ISN'T THE QUESTION.
IT'S WHY HAS IT GONE UP SO MUCH? I, I DON'T HAVE A GOOD UNDERSTANDING OF THAT.
WHY YOU EXPECT A 7 MILLION? WHY DO YOU EXPECT SALES TAX TO INCREASE 7 MILLION? THAT'S THAT'S REALLY NOT, NOT THAT AND NOT THAT.
AND I WANT TO CLARIFY, I'M NOT EXPECTING IT TO INCREASE BY 7 MILLION.
IT HAS INCREASED BY ABOUT 7 MILLION.
I ONLY HAVE A CONSERVATIVE INCREASE OF 1.5 ON WHAT WE'VE ALREADY BASICALLY ARE GETTING THIS YEAR.
SO LAST FISCAL YEAR, IT WAS 20.4 THIS YEAR.
WE'RE, UM, BASED ON OUR CURRENT, WHAT WE'VE ALREADY GOTTEN TO DATE, WE'RE SEEING IT PRO WE HITTING 22.8, ALMOST 23 MILLION, JUST THIS FISCAL YEAR FROM WHAT WE'VE ALREADY SEEN.
AND THAT'S BASED ON ACTUALS TODAY.
AND THEN ME BEING CONSERVATIVE AND JUST SAYING, WE'RE GOING TO GET WHAT WE GOT LAST YEAR ON THE REST OF THE FISCAL YEAR.
AND SO I'M ONLY CONSERVATIVELY INCREASING A 1.5 BASED ON THE 22.8 THAT WE'RE GETTING THIS YEAR.
SO I'M NOT, I HAVEN'T INCREASED.
LIKE I HAVEN'T INCREASED THE PERCENTAGE THAT WE'RE INCREASING IT OVER.
THIS IS JUST THE INCREASE WE'VE SEEN.
A LOT OF THAT HAS BEEN IN SALES AND AUTOS.
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IN OUR, UM, I WANT TO SAY ONLINE SALES, BUT IT'S THE PROPORTION THAT WE GET FROM ONLINE SALES AS WELL.THAT HAS INCREASED SIGNIFICANTLY IN THE POOL.
I'M THEN I'M HAVING TROUBLE WITH THE ARITHMETIC.
YOU SAID 7 MILLION, BUT THE NUMBERS YOU JUST QUOTED WERE LIKE 2 MILLION, 7 MILLION FROM THE ORIGINAL BUDGET.
SO THE ORIGINAL BUDGET, AS YOU KNOW, WAS UNDER, WAS THAT 15.9.
AND YOU'RE TALKING ABOUT THAT FALSE BUDGET.
I, I THINK I UNDERSTAND NOW WHAT, WHAT HAPPENED, W WE'RE YEAH, MY GOAL WAS TO ALIGN WITH NO ACTUAL NUMBERS THIS YEAR, WHICH AS YOU'LL SEE IN THE BUDGET BEFORE YOU, UM, I'VE ONLY INCLUDED ACTUALS.
AND THE ONLY TIME I INCLUDE A BUDGET IS THIS CURRENT ORIGINAL BUDGET FROM THIS FISCAL YEAR.
BUT EVERYTHING WE USE TO CREATE THE BUDGET WAS BASED ON THE ACTUAL YEAR NUMBERS.
UM, YOU'RE PROJECTING THE SALES TO CONTINUE UP, BUT WITH INFLATION, WON'T THAT, I MEAN, THE PROJECTION, EVEN THOUGH WE'RE S LAST MONTH OR THE MONTH PRIOR, AND WE KNOW WHERE EVERYBODY WAS PURCHASING BECAUSE COVA, WE WERE COMING OUT OF COVID.
BUT NOW WITH INFLATION GOING UP, CAN WE STILL CAN AN INTEREST RATE? CAN WE STILL SPECULATE THAT THE NUMBERS WILL CONTINUE RISING FOR THE REST OF 2021 OR 20 22, 20 23? WE DON'T ANTICIPATE THE INCREASE AT THE RATE THEY WERE INCREASING.
SO W THE DRAMATIC INCREASE THAT WE SAW FROM 2020 TO 2021 GOING UP 3 MILLION AND THEN 3 MILLION, AGAIN, WE DON'T ANTICIPATE IT'S GOING TO GO UP ANOTHER 3 MILLION.
AND THAT'S WHY, LIKE, THIS YEAR WE'RE SEEING IT PROBABLY HIT AROUND 23 MILLION.
SO I'M BUDGETING ABOUT 23 MILLION NEXT YEAR.
SO WE DON'T THINK IT'S GOING TO CONTINUALLY INCREASE AT THIS RATE.
IT COULD, WHICH IS AGAIN, WHY WE'VE NOT COMMITTED TO, UH, COMMITTED TO ONE TIME THINGS IN THE BUDGET, SUCH AS THE EVENTS AND OTHER THINGS THAT IF IT WERE TO NOSEDIVE, OKAY, WELL THEN WE'LL TAKE OUT THE EVENTS.
WE'LL HAVE TO SCALE BACK ON NEWSLETTERS AND THINGS LIKE THAT.
BUT OUR GOAL IS NOT TO HAVE LAYOFFS.
I WOULD LIKE TO GO BACK TO THE HEALTH DEPARTMENT, BECAUSE YOU ARE SAYING AFTER WE SPEND THESE $600,000 OR THE HEALTH DEPARTMENT, YOU'RE SAYING THAT THE HEALTH DEPARTMENT WILL BE SELF-SUSTAINING.
HOW DO YOU KNOW THOSE ARE GRANTS AND MONIES THAT WE HAVE TO APPLY FOR? FIRST OF ALL, YOU CAN'T APPLY FOR ANYTHING UNTIL IT'S UP AND RUNNING.
SO WE'RE GOING TO HAVE TO BE UP AND RUNNING, WHICH IS GOING TO TAKE MORE THAN THE 600,000.
AND THEN YOU SAY, WE'RE GOING TO APPLY FOR GRANTS AND WHATEVER.
SO IT WILL BE
I DON'T SEE HOW YOU CAN MAKE THOSE PROJECTIONS.
YOU CAN'T PROJECT A GRANT BEING GRANTED TO, TO THE HEALTH DEPARTMENT.
AND IF YOU LOOK AROUND AT OTHER HEALTH DEPARTMENTS, THEY'RE NOT GETTING THE FUNDINGS THEY NEED.
SO IN THAT CASE, MY QUESTION IS, HOW CAN YOU DO THAT? AND THEN WHERE'S THE MONEY GOING TO COME FROM? THANKS, STEVE.
ALWAYS HOPING THERE WITH A MONEY THEORY OR SOMETHING.
OUR CONSULTANT WHO PROVIDED THE NUMBERS ACTUALLY DIDN'T INCLUDE GRANT FUNDING AS ONE OF THE REVENUE SOURCES.
HE WAS MAINLY ANTICIPATING MOST OF IT COMING FROM LICENSING LICENSING AND PERMIT FEES.
UM, BUT AGAIN, THESE WERE PUT TOGETHER BY, UM, OUR CONSULTANT AND DR.
BAZELL, I BELIEVE, AND I DON'T HAVE A LOT OF FAITH IN DR.
I MEAN, AS A PERSON, HE MAY BE WONDERFUL.
AND AS A MEDICAL DOCTOR, HE MAY BE INCREDIBLE, BUT AS RUNNING A HEALTH DEPARTMENT, HE'S NEVER DONE THAT.
SO WE'RE RELYING ON HIM FOR TOO, BECAUSE HE CAN SAY THAT YOU'RE GOING TO GET GRANT MONEY, OR YOU'RE GOING TO GET LICENSE FEES OR WHATEVER.
SO I DON'T WANT TO ARGUE THE POINT.
I JUST WANT IT NOTED THAT I AM NOT IN FAVOR AT ALL OF THE HEALTH DEPARTMENT BECAUSE OF THAT AS IS THE WHOLE CITY.
AND NO, WE HAVEN'T BEEN ABLE TO VOTE.
WE HAVEN'T GOTTEN ANY INFORMATION.
WE'VE BEEN TOTALLY IGNORED AS FAR AS THE HEALTH DEPARTMENT IS CONCERNED.
I HAVE ANOTHER QUESTION ABOUT THE MAINTENANCE PEOPLE, BECAUSE WE'RE GOING TO BE HIRING LIKE 15 MORE MAINTENANCE PEOPLE.
DON'T WE CONTRACT WITH MAINTENANCE PEOPLE.
WHY DO WE NEED MORE MAINTENANCE? I'M THINKING IT
[00:30:01]
MIGHT BE BECAUSE ALL OF OUR MAINTENANCE PEOPLE ARE HAVING TO GO TO THE NEW SPORTS FLEX.I DON'T KNOW WHERE, WHY DO WE NEED 15 MORE MAINTENANCE? DO YOU WANT TO TACKLE THAT FROM AN OPERATIONAL SIDE GOAL IS TO GET THE FACILITIES AND THE CITY WAYS, RIGHTS OF WAY TO STANDARD, UM, WHICH IS NOT THE CASE TODAY.
WE'VE GOT CONSIDERABLE DEFERRED MAINTENANCE AND SUBSTANDARD IN TERMS OF NOT MEETING THE BASICS, UM, MEDIAN MAINTENANCE, WEED ABATEMENT, FREEZE.
WHY DID THAT HAPPEN? DURING LEAN YEARS, THE CITY CUT BACK IN A NUMBER OF AREAS.
UM, AND THIS IS AN EFFORT TO PUT THOSE NEEDED POSITIONS BACK.
RIGHT? AND SO WE NEED 15 MORE THINK THE NUMBER'S 12, BUT I'LL TAKE YOUR POINT.
THE THING THAT WE SEE EVERYWHERE WE LOOK IS THAT THE SIDEWALKS ARE BROKEN.
THE POTHOLES AREN'T BEING FILLED TIMELY, AND WE NEED TO DO GRAFFITI IS RAMPANT.
THERE'S SOME INCREASED VOLUME ON GRAFFITI.
NOW AT THIS MOMENT, RIGHT NOW IN THE CITY'S LIFE, THE CREW ISN'T EVEN ABLE TO KEEP UP WITH THE REQUESTS THAT COME IN ON THE APP, LET ALONE SURVEY THE MAJOR ARTERIALS.
AND IT'S, UM, IT'S NOT TO STANDARD, I GUESS, IS THE DIRECT ANSWER TO QUESTION.
WE'RE TRYING TO GET THE CITY WORKING THE WAY IT SHOULD.
SO MANY GO TO THE SPORTS PLEX.
HOW MANY ARE SCHEDULED AT THE SPORTSPLEX DEDICATED, DEDICATED TO THE SPORTSPLEX, HOW MANY MAINTENANCE PEOPLE THAT WE COULD HAVE IN THE OTHER PARTS OF THE CITY, YOU DON'T NEED TO HAVE THEM UP THERE.
NONE OF THE PROPOSED PHYSICIANS ARE GOING TO BE DEDICATED TO THE SPORTSPLEX AT ALL BECAUSE OF THE TYPE OF FUNDING THEY COULD ONLY BE USED FOR STREETS AND CRMS. RIGHT? I'M NOT ASKING THAT THOUGH.
I'M ASKING HOW MANY NOW CURRENTLY GO UP TO THEM ARE DEDICATED TO THE SPORTSPLEX RIGHT NOW.
WE'VE GOT, UM, DEDICATED MAINTENANCE SERVICES THERE IN TWO FORMS. WE'RE USING CITY LABOR'S CITY FORCE ACCOUNT, AND WE'RE USING CONTRACT LABOR.
UM, EACH OF THOSE, I THINK THE BASE IS, IS A COUPLE CONTRACT MAINTENANCE WORKERS AND A COUPLE CITY WORKERS.
THAT NUMBER FLUCTUATES BASED ON PROJECTS AND BASED ON DEMANDS, WE RUN CREWS.
AND SO THE CREWS HAVE BEEN OF LATE, VERY BUSY ON FIELD MAINTENANCE, TRYING TO GET THE FIELDS BACK UP SO THAT WE'VE EXCEEDED THE BASE WE'RE WE'RE WAY BEHIND ON MAINTENANCE AT THAT FACILITY AS ALL OF THEM.
AND HOW MUCH IS THAT FACILITY COSTING US? UH, FORTUNE.
YEAH, IT DOESN'T REALLY, IT DOESN'T GENERATE REVENUE.
WHY IS IT JUST BEING USED FOR SPECIAL OCCASION? YEAH.
AND MARSHA HAS A REQUEST TO MOVE.
YOU GO FIRST AND THEN WE'LL ASK TO MARSH.
WELL, WELL, THE COUNCIL SEEMS EAGER TO OFFLOAD, UH, THE RESPONSIBILITY TO KEEP THE CITY GRAFFITI FREE TO ATHENS, WHICH IS, WHICH IS A TAX INCREASE, UH, WHEN WE PAY THE, UH, INCREASED FEES TO ATHENS.
BUT, UH, ON THE CONTRARY, THEY, THE COUNCIL SEEMS EAGER TO PICK UP HEALTH DEPARTMENT RESPONSIBILITIES.
SO WE'RE OFF OFFLOADING, UH, UH, GROUP GRAFFITI RESPONSIBILITY, WHICH IS A BURDEN THE CITY HAS BORN FOREVER.
AND, AND WHAT, WHAT DO YOU KNOW PIE IN THE SKY? UH, WE'VE GOT THIS, UH, EAGER COUNCIL, UH, WANTING TO PICK UP A HEALTH DEPARTMENT RESPONSIBILITIES.
HAVE YOU, HAVE YOU BEEN ON THE PHONE WITH THE, UH, CITY MANAGERS OF, UH, PASADENA IN LONG BEACH WHO HAVE A LONG EXPERIENCE WITH HEALTH DEPARTMENTS TO, UH, SEE, UH,
[00:35:01]
SEE WHAT THE BUDGET COSTS WERE FOR, UH, THEIR, UH, THEIR EXPERIENCE AND, UH, AND I WAS A LITTLE LATE, BUT, UH, IS, UH, THIS BUDGET, UH, CONSIDERED TO BE, HAVE NO IMPACT NEXT YEAR? UH, THE HEALTH DEPARTMENT, $600,000, IS IT, AND THERE'LL BE NO OTHER IMPACT, UH, BUDGET IMPACTS.AND ALSO, AND MY SECOND TOPIC IS, UH, I'M JUST CURIOUS ABOUT THE, UH, THE BONDED INDEBTEDNESS AND THE SCHEDULE OF MATURITY OF ALL THE DEBT TO CITY ON DEBT THAT THE CITY OWES.
IS THERE A PART OF THE BUDGET THAT, UH, GIVES US A TIMELINE OF THE MATURITIES OF ALL THE BOND DEBT? THOSE ARE MY TWO QUESTIONS.
SO THE HEALTH DEPARTMENT BUDGET, AS WE DISCUSSED BEFORE IS INCLUDED IN THERE.
UM, AND THAT'S ABOUT 400,000 THERE.
AND THEN THERE IS A WHOLE SECTION IN THE BUDGET THAT GOES OVER OUR DEBT SERVICE STARTS ON PAGE 180 7.
UM, WHICH OUTLINES EACH OF OUR NOTES AND WHAT'S REMAINING, UM, IF YOU GROUP THEM TOGETHER, YES.
SO WE HAVE, UM, JUST TO GO THROUGH THEM REAL QUICKLY.
WE HAVE, UM, THE SUCCESS AGENCY NOTE, WHICH IS GOT ABOUT 7.2 LEFT ON IT IN MILLION 7.2 MILLION.
WE HAVE OUR 1996, UH, CFT BONDS, WHICH ACTUALLY WILL GET PAID OFF THIS FISCAL YEAR.
UM, AND THEN WE HAVE OUR 2017 ONS AND THEN WE HAVE OUR 2006, UH, ISSUE, WHICH IS THE SPORTS PLEX PROJECT AND ITSELF.
UM, AND THEN, UH, WE HAVE OUR 2018 BOND ISSUE AND THEN OUR 2020 PENSION OBLIGATION BONDS.
AND THEN LASTLY, WE HAVE OUR ENERGY EFFICIENCY, LOANS, PAYABLE NOTE AS WELL.
AND SO EACH OF THESE TABLES IS INCLUDED IN THERE.
AND THEN WE'VE ALSO INCLUDED THIS YEAR'S TOTAL PAYMENTS AS WELL, THAT ARE COMING OUT OF, UH, THE, THAT SERVICE FUND, MARK Y WELL, TO ANSWER YOUR FIRST QUESTION, OUR PAYMENTS WILL STAY SET.
SO WE'LL STILL HAVE THE DEBT PAYMENTS PER THE AMORTIZATION SCHEDULE, LOAVES WON'T CHANGE.
UM, WILL WE SEE IN DECLINE IN SALES TAX? WE COULD, WE COULD SEE THAT.
AND SO THAT'S WHY WE WERE KIND OF CONSERVATIVE WHEN WE ACTUALLY HAVE, UM, SET ASIDE ROLL CALL.
UM, WE'VE INCLUDED, UH, ANTICIPATED TRANSFER TO CIP OF WHAT 800,000 I BELIEVE.
UM, AND THAT IS WHAT WE KIND OF ARE CONSIDERING OUR CUSHION, IF YOU WILL, IF SALES TAX COMES IN AND WE HAVE THAT ACCESS FUND BALANCE THAT WE TALKED ABOUT A 500,000, THEN WE'LL MAKE THAT TRANSFER.
IF IT DOESN'T, THEN WE WON'T MAKE THAT TRANSFER.
SO WE KIND OF, WE HAVE PUT SOME, UH, WHAT WAS A CONSERVATIVE OR PLACEHOLDERS IN THE BUDGET TO WHERE IF REVENUE DOESN'T COME IN, THEN THERE'S CERTAIN, UH, PLACEHOLDERS THAT WE PUT THAT WE WOULDN'T EXPENSE OUT OR TRANSFER OUT.
SO IT ALL DEPENDS ON HOW PEOPLE SPENDING IS IN RELATION TO THE HYPERINFLATION.
SO I CAN'T, I'M NOT AN ECONOMIST, SO I CAN'T, CAN YOU TURN THAT?
[00:40:11]
UM, I DON'T WANT IT IN TROUBLE.OH, CAN WE GO BACK TO THE SLIDE ABOUT THE 12 FULL-TIME MAINTENANCE POSITIONS? SO, UM, MY UNDERSTANDING TO ADD THESE POSITION IN POSITIONS IN, WE TOOK AWAY SOME POSITIONS FROM OTHER DEPARTMENTS.
SO HE ADDED, WE TOOK AWAY POSITIONS FROM PD JUST TO BALANCE THE BUDGET AND LOOK INTO FUTURE YEARS.
SO THOSE PROS AND POSITIONS AREN'T COMING BACK, UM, TO ADD THESE 12 MAINTENANCE POSITIONS, WE TOOK THEM OUT OF GAS TAX AND SEWER, UM, MAINTENANCE.
SO THOSE WERE A SPECIAL REVENUE FUNDS.
THEY HAVEN'T BEEN FULLY UTILIZED IN THE PAST, SO WE'RE ACTUALLY PROPOSING TO INCREASE OUR USAGE OF THOSE.
AND THAT'S HOW WE'RE PROPOSING TO FUND THESE 12 MAINTENANCE POSITIONS.
AND THEN THE ONE PART-TIME POSITION REMOVED FROM FINANCE WAS TO MAKE THE OTHER POSITION FULL-TIME CORRECT.
I JUST NEED TO, SO ESSENTIALLY THE ONLY THREE THAT WERE ADDED TO THE GENERAL FUND WOULD HAVE BEEN THE ONE PUBLIC SAFETY POSITION AND THEN THE TWO PART-TIME LIMITED SERVICES POSITIONS.
MY PROBLEM IS WITH THE SPORTS PLEX, UM, IS ALL THE WORK BEING DONE BY CITY EMPLOYEES OR ARE THEY DONE BY CONTRACT LABOR? UM, THE QUESTION IS, IS ALL THE WORK BEING DONE BY EITHER CONTRACT LABOR OR BY CITY FORCES THEY'RE BEING DONE BY BOTH.
NOW, IF THERE'VE BEEN DONE BY CONTRACT LABOR, HAVE THEY, UM, HAVE YOU GOT COMPETITIVE BIDS ON FOR CONTRACT LABORS? BECAUSE I HAVEN'T SEEN ANYTHING TO, UM, PUT OUT CONTRACT FORBIDS FOR THE PAST AND PRESENT.
I HAVEN'T SEEN ANYTHING IN THE PAPER WHERE YOU PUT OUT BIDS FOR THE WORK UP THERE.
THE CITY HAS USING A CONTRACTOR THAT WAS SECURED VIA COMPETITIVE BID PROCESS.
AND THE CITY IS REBIDDING THAT AS WELL.
IS THAT THE ONE FROM LA VALENTI? NO, THIS IS, I UNDERSTAND I HAD SOMETHING HERE.
I DON'T UNDERSTAND THE QUESTION ABOUT THE CORPORATE OFFICES OF THE CONTRACTOR AND THE RELEVANCE OF THAT.
I'M TRYING TO UNDERSTAND THAT I DON'T GET THE POINT YOU'RE MAKING, OH, I'M MAKING THE POINT THAT APPARENTLY THERE SHOULD, THERE'S A MINI MINUTES MUNICIPAL MUNICIPAL CODE THAT STATES THAT LABOR CONTRACTS YOU'RE SUPPOSED TO BE PUT OUT FOR BIDS.
ARE THEY NOT? THE CODE SAYS THAT, AND THAT HAS BEEN THE PRACTICE OF THE CITY, WHICH CONTINUES.
AND IT'S JUST, THIS IS WHAT'S HAPPENING UP AT BIG LEAGUE DREAMS OR, I MEAN, THE SPORTSPLEX, THE CONTRACTOR UP THERE IS THROUGH MARIPOSA AND THAT CONTRACT IS BEING PUT OUT TO BID AS WE SPEAK.
BUT THE OTHER ONES THAT, UH, FOR MAINTENANCE FOR FIXING IT UP, IT'S I KNOW MARIPOSA IS DOING THE LANDSCAPING AND WHAT HAVE YOU, BUT THE OTHER PART OF IT, LIKE FIXING UP THE FIELDS AND STUFF LIKE THAT.
THE CONSTRUCTION OF THE THINGS WHAT'S HAPPENING THERE.
WELL, WHEN THE CITY DOES PROJECTS, THE CITY HAS A PURCHASING PROCEDURE AND POLICY THAT GOVERNS HOW THOSE ARE SECURED.
OH, I GUESS IT'S SOMETHING'S HAYWARD OR SOMEPLACE SAY, I JUST DON'T BELIEVE WHAT YOU'RE DOING OR YOU'RE DOING IT RIGHT.
CAUSE WE HAVEN'T HAD A NEW PERSON UP THERE.
AND APPARENTLY FROM WHAT I UNDERSTAND, OR FROM WHAT I GOT IN THE WEST COVINA SPORTS, A RENOVATION PROJECT, HE STATES THAT, UH, OUR COMMUNITY SERVICE COORDINATORS STATES THAT THANKFULLY OUR PREVIOUS PR OUR PREVIOUS PROJECT IN LAW POINTY ALLOWED US TO FORM RELATIONSHIPS WITH A TEAM OF PROFESSIONALS TO ALLOW US TO FORM A RENOVATION PROJECT HERE AT THE SPORTSPLEX.
[00:45:01]
TELLS ME THAT THIS MAN FROM, I GUESS IT MUST BE LOCKED WENDY, BECAUSE HE SAID OUR PRE PREVIOUS PROJECT, I DIDN'T KNOW.WE HAD A PREVIOUS PROJECT IN LA POINTY.
YOU GUYS EITHER ARE NOT PUTTING OUT BIDS FORWARD OR JUST WHATEVER, YOU KNOW, SOMEONE HAS FRIEND, HEY, NEED A JOB.
SO IT WOULD BE UP TO YOU TO FIND OUT WHAT IS WRONG OR WHAT IS WHAT HE'S DOING.
MAYBE HE'S AN, I THINK, I BELIEVE HE'S A NEW PERSON UP THERE, BUT THIS WAS WHAT CAME OUT AND I'LL GIVE YOU A COPY OF IT SO THAT YOU KNOW, YES.
UM, I WOULD LIKE TO PICK UP THE, UM, COMMENT THAT WAS MADE ABOUT THE MAINTENANCE WORKERS.
UH, THERE WAS A COMMENT MADE THAT PART OF THEM WERE BEING FUNDED OUT OF THE SEWER FUND.
AND, UH, THIS IS AN ISSUE THAT I'VE BEEN BRINGING UP ALMOST YEARLY.
NOW FOR QUITE A FEW YEARS, THIS, THERE WAS A STUDY DONE.
I BELIEVE IT'S NOW FOUR YEARS AGO SAID THAT THE CITY HAD SERIOUS SEWER DEFICIENCIES AND MAJOR PROJECTS WERE NECESSARY TO REMEDY THOSE DEFICIENCIES.
THE MAJOR PROJECTS NEVER SEEM TO HAPPEN.
THERE HAS BEEN SOME MINOR PROJECTS.
UH, THE, UH, EACH YEAR I GET UP AND TO THE COUNCIL, I'VE DONE THIS LIKE FOUR YEARS IN A ROW NOW SAYING WE HAVE THESE HUGE BALANCES IN THE SEWER FUND.
WE DON'T SPEND MUCH MONEY YET EVERY YEAR WE FEEL THE NEED TO INCREASE THE SEWER FEES BY A SIGNIFICANT PERCENTAGE, UH, UH, THAT THE RESIDENTS HAVE TO PAY.
AND, AND, AND NOW WE'RE LOOKING TO USE THE SEWER FUND BALANCED, UH, TO HIRE, HIRE PEOPLE.
BUT WE DON'T SEEM TO EVER, UH, WHO ARE DOING DAILY MAINTENANCE.
THEY'RE NOT DOING MAJOR PROJECTS, SO THERE'S SOMETHING WRONG.
AND I REMEMBER SPECIFICALLY, THIS IS JUST ABOUT A YEAR AGO WITH A CONSULTANT THAT WAS HERE.
I QUESTIONED, I RAISED THE SAME QUESTION I'M RAISING NOW.
AND THE CONSULTANT SAID THIS WAS IN PUBLIC SESSION.
WELL, THE FINANCIAL REPORTS ARE WRONG.
WE'RE REALLY SPENDING ALL THE MONEY.
SO THERE'S SOMETHING WRONG GOING ON IN THE SEWER FUND BECAUSE, AND I, I I'M JUST STATING IT FOR THE RECORD BECAUSE IT, SINCE I BROUGHT IT UP SO MANY TIMES, UH, IT'S, THERE'S, THERE'S THIS SOMETHING PLAIN WRONG.
AND, UH, UH, IF WE HAVE MONEY TO HIRE MAINTENANCE PEOPLE OUT OF IT, AND WHY AREN'T WE DOING THE BIG PROJECT THAT'S ENOUGH? I MEAN, I CAN DIG UP THAT OLD REPORT IF YOU, IF NOBODY KNOWS ABOUT IT ANYMORE, BUT THERE'S SUPPOSED TO BE A MAJOR FAILURE COMING THAT HAS TO BE REMEDIED.
IN ADDITION TO SALARIES AND BENEFITS, WE DO STILL HAVE CAPITAL IMPROVEMENTS THAT ARE PLANNED FOR THE NEXT FISCAL YEAR AND SOME GOING ON THIS FISCAL YEAR THAT ARE OUTLINED IN OUR CIP.
UM, WE ALSO HAVE A FUND BALANCE THAT WE'RE SITTING ON THAT WILL BE PLANNED FOR FUTURE PROJECTS THAT OUR ENGINEER'S CURRENTLY EXAMINING FOR AS WELL.
SO THERE, UH, IF I SURE TRY TO ANSWER FROM A SLIGHTLY DIFFERENT PERSPECTIVE, THE SEWER FUND BALANCE TODAY SITS AT, I BELIEVE ABOUT $5 MILLION.
AND I THINK THAT'S FAR TOO LOW.
WE HAVE TWO MAJOR CAPITAL PROJECTS CURRENTLY UNDER CONSTRUCTION.
THEY WERE BID AND WE ARE REPLACING A LIFT STATION ON AZUSA AVENUE, AND WE JUST APPROVED A MAJOR, UM, EMERGENCY REPLACEMENT OF A 10 INCH FORCE MAIN, WHICH WAS IN IMMINENT DANGER OF COLLAPSE.
AND I THINK THE MAINTENANCE CREWS NEED TO BE ADDED AND SUPPLEMENTED.
UM, WHEN WE ARE HAVING THAT PROBLEM WITH THE LIFT STATION PROJECT THAT UNCOVERED THE PROBLEM WITH THE FORCE MAIN, WE NEEDED TO HAVE CREWS STANDING BY WITH THE VACTOR TRUCK.
I'M NOT QUESTIONING YOUR FUND IS NOT OVERFUNDED.
AND WE'RE DELIVERING MAJOR PROJECTS.
UM, RIGHT NOW, WELL, I, I WAS NOT QUESTIONING THE NEED FOR THE PROJECTS.
I WAS QUESTIONING WHY THE PROJECTS WEREN'T HAPPENING AND WHY THE FUND BALANCE.
I CONSIDER A $5 MILLION BALANCE, A HUGE BALANCE IN THAT FUND.
AND, UH, AND THAT'S, THAT WAS THE QUESTION I ASKED LAST YEAR.
AND, AND, AND, UH, DAVE, THIS PREDATES YOU, I ASKED THE SAME QUESTION TO THE PREVIOUS CITY MANAGER.
[00:50:01]
SO IT'S IT'S UM, UH, AND I WAS TOLD THE, THE, I FORGOT, WHICH I FORGOT THE TECHNICAL NAME FOR THE LINE.THAT'S IN IT, IMMINENT DANGER OF COLLAPSE, BUT IT WILL BE A BIG, ENORMOUS PROBLEM FOR THE CITY IF IT COLLAPSES.
OH, THAT'S, THAT'S WHY WE'RE ADDRESSING IT IMMEDIATELY.
BUT I THINK IT'S, IT'S A FAIR QUESTION.
AND I THINK YOU DESERVE TO SEE THE SCHEDULES AND THE WORK THAT'S CONTEMPLATED AS A MASTER PLAN OF SEWERS.
AND I THINK YOU'LL BE SATISFIED WITH THE APPROACH AND, AND HOPEFULLY WOULD ULTIMATELY AGREE THAT $5 MILLION IS, IS NOT SUFFICIENT TO ADDRESS THE PROBLEMS THAT THE CITY HAS.
WELL, I KNOW WE ALWAYS JOKE ABOUT WHAT WE'RE ONE STEP AHEAD OF THE, THE REGULATORY AGENCIES, BUT IF YOU END UP SPRAYING RAW SEWAGE, UM, AND WE END UP WITH REGIONAL BOARD CITATIONS, IT'S, IT'S, IT'S, IT'LL BE A MOMENT WHEN YOU'D BE VERY GLAD WE TOOK CARE OF THEIR HORIZONTAL INFRASTRUCTURE.
UH, MY POINT IS THAT SHOULD HAVE HAPPENED YEARS AGO.
UH, W WE'LL GO BACK TO ME FOR A SECOND.
SO I HAVE TWO TOPICS, TWO QUESTIONS, PROBABLY MOSTLY DIRECTED TO STEPHANIE.
AND FIRST OF ALL, STEPHANIE, THANK YOU FOR PUTTING UP WITH A LOT OF THE QUESTIONS AND TAKING THE TIME.
UM, LET'S TALK ABOUT THE SPORTSPLEX FOR A MINUTE.
YOU MENTIONED THE, THE BOND PAYMENTS WHEN BILL WAS ASKING ABOUT THEM, WHAT IS OUR CURRENT BOND PAYMENT, UH, PER YEAR OR WHATEVER YOU'RE BROKEN DOWN TO UP THERE ON, ON THE SPORTS PLEX AREA.
AND WHAT DOES THAT ENCOMPASS? IS IT JUST THE SPORTSPLEX? IS IT INCLUDE THE HEIGHTS? DOES IT INCLUDE THE GOLF COURSE THAT WAS SUPPOSED TO BE THERE? GIVE ME AN IDEA OF WHAT WE'RE WORKING WITH.
I DON'T HAVE THE DETAILS AS TO WHAT THE ORIGINAL PROJECT IN COMPASS.
UM, I CAN PROVIDE YOU WITH WHAT OUR PAYMENTS ARE.
THEY ARE CURRENTLY BEING FUNDED BY OUR, UH, BY THE ROPS.
SO OUR REINFORCED WILL OBLIGATION BONDS.
SO TECHNICALLY THE CITY IS WE, WE PAY THE PAYMENTS, BUT WE GET THAT MONEY BACK THROUGH THE ROPS.
DO WE KNOW WHAT THAT PAYMENT IS OUT OF CURIOSITY? SO FOR 2023, FOR EXAMPLE, WE'RE GOING TO BE PAYING, I HAVE TO DO A LITTLE MATH RIGHT HERE.
AND THEN, SO IT LOOKS LIKE PRINCIPLES 405 IN INTEREST IS 4 45.
IT'S TWO DIFFERENT SERIES RIGHT HERE, BUT IT'S THE TOTAL OF THIS LINE RIGHT HERE, WHICH I APOLOGIZE SHOULD HAVE HAD ON TOTAL RIGHT HERE.
IS THAT ABOUT RIGHT THAT ROUGH MATH? YEAH.
UM, THE, UH, THE NEXT QUESTION THAT I HAVE RELATES TO THE BIG LEAGUE DREAMS, WHO USED TO BE THE OPERATOR AT SPORTSPLEX.
AND I DON'T KNOW IF IT'S FOR STEPHANIE OR DAVE.
SO I APPRECIATE THE CITY MANAGER.
IF HE WANTS TO CHIME IN WHAT WAS THE REVENUE WE WERE GETTING FROM BIG LEAGUE DREAMS PRIOR TO THE PANDEMIC, SHUTTING EVERYTHING DOWN.
I DON'T KNOW IF WE HAVE A RED REVENUE SCHEDULE WITH US THIS EVENING, BUT THE REASON THEY'RE NO LONGER HERE IS THEY WEREN'T PAYING.
WE HAD DEFERRED MAINTENANCE NOT BEING DONE, AND WE HAD LEASE PAYMENTS, NOT BEING MADE, WHICH IS HOW WE GOT INTO THIS PICKLE.
AND I'M TRYING TO UNDERSTAND THE SIZE OF THE PICKLE IF YOU WANT TO CALL IT THAT THE, THE, THE REASON WHY I'M ASKING IS CAUSE OBVIOUSLY THEY WERE MAKING PAYMENTS FOR A WHILE.
IF YOU'RE SAYING THEY WEREN'T MAKING PAYMENTS, WHAT, WHAT WAS THE AGREEMENT THAT WE HAD WITH BIG LEAGUE DREAMS FOR THE USE OF THE FACILITY? WHAT, WHAT WAS OUR, HOW ARE WE GENERATING REVENUE FROM THEM? I KNOW IT'S A LEASE.
SO WAS IT BASED ON GATE REVENUE? WAS IT BASED ON OVERALL INCOME? IS IT A PERCENTAGE? THERE'S A LOT OF WAYS TO DEVELOP A LEASE.
I'M TRYING TO, WHAT I'M TRYING TO FIND IS HOW DO I GET TO THAT NUMBER? YOU DON'T HAVE THE REVENUE SCHEDULE.
SOMEBODY'S GOT TO KNOW A LITTLE BIT OF THE DETAILS OF THAT AGREEMENT AND WHAT IT WAS KIND OF DESIGNED AROUND.
WELL, THE BASIC DEAL, AND I CAN GET YOU A COPY OF IT.
AND SO YOU CAN SEE THE TERMS, THEY WEREN'T MEETING IT, THEY WEREN'T PAYING.
AND SO THEY WEREN'T USING THE REVENUE THAT CAME IN FROM THE FACILITY, USE THE ENTRY FEES, THE MONIES FROM THE RESTAURANT REVENUE, THE, THE LEAGUES PAYMENTS, ALL OF THOSE THINGS, THEY WERE TAKING THE MONEY OUT OF THE FACILITY, BUT THEY WEREN'T PUTTING ANY BACK IN.
AND SO EVERY SINGLE THING YOU GO UP THERE, YOU POINT YOUR FINGER.
YOU GOT AN OPPORTUNITY TO SPEND THOUSANDS OF DOLLARS ON LIFE SAFETY SYSTEMS, METHANE MONITORING SYSTEMS, FIRE, EXTINGUISHING SYSTEMS, ROOFS, THAT LEAK.
UM, I KEEP GOING, YOU'RE GOING TO START TO CRY.
[00:55:01]
THE EXTENT OF THE PROBLEMS UP THERE WERE DEEP.UM, BUT I CAN GET FOR YOU AND WE'LL, UH, A COPY OF THE AGREEMENT AND YOU COULD SEE WHAT THEY WERE SUPPOSED TO BE DOING.
AND THEN WHEN YOU LOOK AT THE REVENUE THAT CAME IN TO SEE THAT THEY WERE NOT MAKING THEIR OBLIGATED PAYMENTS, UM, THAT'S, THAT'S THE DIFFERENCE.
AND THAT'S THE REASON THAT THE FACILITY DEGENERATED, I THINK THEY TOOK MONEY OUT, BUT I DON'T THINK THEY PUT ANYTHING BACK IN.
SO ON WHEN YOU GET ME THAT, COULD YOU ALSO GET ME THE REVENUE HISTORY AS WELL, AT LEAST FOR AT LEAST A YEAR OR FIVE YEARS? SURE.
IF I HEARD CORRECTLY, YOU'RE TELLING ME THAT NOT ONLY BIG LEAGUE DREAMS WAS NOT PAYING OR BRINGING THE REVENUE TO PAY FOR THINGS, HOW MUCH RESPONSIBILITY WERE THEY FOR THE LOCATION ITSELF, OR WAS THE CITY ANY PART OF THAT? AND IF THAT'S THE CASE, WHERE WAS THE INSPECTIONS THAT NEEDED TO TAKE PLACE BY THE CITY? SO THAT ONCE YOU HAVE THIS BIG LEAD DREAMS BACK IN OUR HANDS, THAT WE WERE NOT, YOU KNOW, FLABBERGASTED BY THE DECLINE OF THAT LOCATION, WERE WE INSPECTING IT THE ENTIRE TIME? IS THAT PART OF THE CONTRACT? OKAY.
I'LL, I'LL GET YOU ALL OF THAT DATA.
ANGIE, I UNDERSTAND YOUR QUESTION.
DID WE FAIL GOOD EVENING? UH, LET ME ANSWER THAT IN THIS WAY.
I THINK THE CITY, BY MAKING THE DEBT SERVICE PAYMENTS ON THE FACILITY ON THE BONDS HAS DONE ITS PORTION.
AND I THINK IF THAT FACILITY WERE TO STANDARD AND WERE UP AND RUNNING, THERE'D BE ENOUGH REVENUE COMING IN TO PAY FOR THE, THE MAINTENANCE.
BUT, BUT WE'RE DIGGING OUT OF A HOLE NOW AND WE'RE NOT GOING TO DIG OUT OF IT OVERNIGHT.
YOU'RE TRYING TO FIX THE BLAME.
UM, AND I I'M SPENDING MOST OF MY ENERGY TRYING TO FIX THE PROBLEM.
FOLLOWING UP ON, UH, MR. GRIBBETS HAS $5 MILLION SEWER FUND, UH, COMMENTS AND, AND YOUR REPLY.
UM, I'M TRYING TO UNDERSTAND, UH, THE SEWER, UH, IT SOUNDS TO ME LIKE A SINKING FUND AND HOW CAN YOU FUND, UH, THE HIRING OF MAINTENANCE WORKERS OUT OF THAT FUND? UNLESS THOSE WORKERS ARE GOING TO BE EXCLUSIVELY WORKING ON THE SEWER SYSTEM, IS THAT TRUE? ARE THE WORKERS THAT ARE HIRED USING THAT SINKING FUND, UH, CAN, UH, USE A HUNDRED PERCENT OF THEIR TIME TRYING TO FIX THE, UH, SEWER PROBLEMS THAT FINANCE DIRECTOR CORRECT ME IF I GET IT WRONG, BUT WE TREAT THE SEWER AS A, AN ENTERPRISE, NOT A SINKING FUND, BUT WE, WE ASSIGN WORKERS TO DO FACILITY MAINTENANCE, TO VOLLEYBALL THE LINES TO S TO VIDEOTAPE THE LINES, TO DO, UM, EMERGENCY REPAIRS WHEN THOSE BECOME NECESSARY.
UM, THE WORKERS THAT ARE PAID OUT OF THE SEWER FUND ARE TO DO SEWER WORK.
UM, I HAVE A COUPLE OF QUESTIONS, BUT BEFORE I SHARE THOSE QUESTIONS, I JUST WANTED TO FOLLOW UP ON THE TIME OF DEFAULT BY BIG LEAGUES, IN TERMS OF MAINTENANCE AND PAYMENT.
WAS IT BEFORE THE PANDEMIC, DURING THE PANDEMIC, AND IF THEY WERE NEGLIGENT IN THE MAINTENANCE, WHAT RESPONSIBILITY, THE CITY, CARRIE, IN TERMS OF THEIR KNEE TO OVERSEE THAT THEY WERE KEEPING UP TO THE CONTRACT.
IT SOUNDS TO ME LIKE IT WAS, IT WENT TO HELL IN A HAND BASKET IN TERMS OF MAINTENANCE, BUT AS FAR AS PAYMENT, THEIR LEASE, HOW LONG WERE THEY NOT PAYING? WAS IT DUE TO PANDEMIC OR WAS IT JUST NEGLIGENCE? AND WE LET IT GO ON FOR JUST THE BAD, BAD RENNER.
DOES THAT MAKE SENSE? WHERE DO I NEED TO RESTATE THAT AGAIN? I THINK WHAT WE'RE TRYING TO DO HERE IS FIX THE BLAME AND THERE'S PROBABLY GOING TO BE SOME LITIGATION, BUT LET ME ANSWER THE QUESTION.
IF I MAY, THEY QUIT PAYING RENT BEFORE THE PANDEMIC STARTED, AND THAT'S WHEN THE CITY GOT INTO THE LANDLORD TENANT DISPUTE WITH THEM
[01:00:01]
OVER NON-PAYMENT OF RENT, THEY GOT EVICTED.SO TO SPEAK, UH, LONG BEFORE THE PEN, I CAN GET YOU THE DATES.
I DON'T REMEMBER THEM AS I'M SITTING HERE, BUT OKAY.
UM, LAST NIGHT, I'M SORRY, GO AHEAD, PLEASE.
I DID NOT MEAN TO INTERRUPT YOU.
LAST NIGHT, YOU PREFACED YOUR PRESENTATION BY SAYING THAT WE WERE DOING A PARADIGM SHIFT OF SOY.
UM, WE WERE GOING TO GO FROM BUDGETING TO ACTUAL, I'M A NOVICE AT THIS.
I COME HERE TO LEARN MORE THAN ANYTHING ELSE, BUT WHAT I HAVE KIND OF PICKED UP HERE AND THERE IS WHEN YOU DO ACTUAL, YOU HAVE TO BASE IT ON DATA, RIGHT.
AND WHAT DATA DO YOU HAVE IN TERMS OF THE SPORES PLEX, THE HEALTH DEPARTMENT TO INCLUDE IT IN THIS BUDGET? IT SEEMS TO ME, THAT'S, YOU'RE NOT FOLLOWING YOU.
YOU'RE PR YOU'RE HAVING A PROJECT BUDGETING FOR THESE ENTITIES, RIGHT? WELL, JD, THIS IS 300 PAGES OF DATA.
IT HAD IN TERMS OF HOW THIS WAS TREATED.
THIS TIME, WE HAD A LOT OF CONVERSATION WITH THIS AT OUR AUDIT COMMITTEE.
AND AS I RECALL, THE CONVERSATION AND THE RECOMMENDATION WAS AS REGARDS, YOU KNOW, ONE OF OUR EXPENDITURE CATEGORIES IS OVERTIME, BUT, BUT THE SUGGESTION WAS WE THE NEED TO BETTER MANAGE IT AND HAVE A DIFFERENT APPROACH TO PROVIDING SERVICES AND COVERING SHIFTS AND MINIMUM MANNING IN OUR SAFETY DEPARTMENTS, OR WE NEED TO PROPERLY BUDGET FOR THE OVERTIME EXPENDITURES.
THAT'S EXACTLY WHAT THIS BUDGET DOES.
WAS THERE A ACTUAL BUDGET CON UH, COMPARISON ANALYSIS DONE? SO WHAT WERE THE RESULTS? SO WHEN WE TALK ABOUT BUDGET VERSUS ACTUALS, PRIOR BUDGETS HAD BEEN ROLLED OVER TO ROLL OVER IN THE BUDGETED AMOUNT AND NOT LOOKING AT HISTORICALLY WHAT WE'VE SPENT.
SO IN REGARDS TO PRIOR YEARS, WE LOOKED AT THE ACTUAL AMOUNTS VERSUS WHAT WAS BUDGETED, BECAUSE WHAT WAS BUDGETED WAS A PROJECTION.
NOW, OF COURSE, I CANNOT DO THAT FOR THE SPORTSPLEX AND HEALTH DEPARTMENT BECAUSE I DON'T HAVE THAT HISTORY.
SO FROM THERE, WE'RE GOING TO HAVE TO RELY ON OTHER PARTIES IN ONE CASE, IT'S THE CONSULTANT.
AND IN THE OTHER, WE'RE RELYING ON THE DEPARTMENT TO GIVE US A GAUGE OF WHAT THEY'RE ANTICIPATING ON SPENDING.
IN REGARDS TO THAT, I CAN, I KNOW WHAT THEIR SALARIES ARE GOING TO BE IN TERMS OF, UH, WHAT THAT COST IS GOING TO BE.
UM, AND I CAN KIND OF GAUGE BASED ON FEES OF WHAT WE SAW WHEN IT WAS OPEN FOR A PERIOD OF TIME, WHAT WE GOT DURING THOSE MONTHS AND KIND OF PLAN THOSE OUT FOR FULL OPENING.
BUT THOSE ARE PROJECTIONS AND ESTIMATES BASED ON THE DATA THAT WE DO HAVE THAT MAY NOT BE ACTUAL AS FROM PRIOR YEARS.
SO YOU'RE ACTUALLY USING BOTH METHODS BUDGETING.
UM, MY NEXT QUESTION HAS TO DO WITH THE RELATIONSHIP OF THE HEALTH DEPARTMENT, SPORTS PLEX IN CONSIDERATION OF A LONGSTANDING NEED THAT THE CITY'S HAD.
AND I PERSONALLY FIND IS FAR MORE RELATED TO THE COVID MONEY, AS WELL AS THE PANDEMIC ITSELF.
AND THAT IS DOWNTOWN WEST COVINA.
YOU'VE INVESTED A LOT OF MONEY ON THE SPORTSPLEX AND MONEY FROM THE AMERICAN RECOVERY ON THE HEALTH DEPARTMENT, BUT YOU'VE SPENT VERY LITTLE, IF ANY, ON DOWNTOWN WEST COVINA.
NOW I UNDERSTAND THAT YOU'RE ARRANGING FOR SOME SORT OF AN AGREEMENT BETWEEN THE BUSINESS OWNERS, YOU'RE BARTERING SOME SORT OF AGREEMENT FOR THE BUSINESS OWNERS TO KIND OF PICK UP SOME OF THIS COST, BUT I'M WONDERING YOUR END OF THE DEAL.
THAT IS THE STREET AND THE PARKING LOT THAT EXISTS THERE IN THE DOWNTOWN AREA.
WHY HASN'T ANY MONEY BEEN INVESTED IN THAT TO ASSIST THE OWNERS OF THE BUSINESS, AS WELL AS THE PROPERTY OWNERS TO TRY TO OFFSET SOME OF THE IMPACT THAT THEY HAD FROM THE COVID PANDEMIC, WHICH IS CERTAINLY MORE RELATED TO FUNDING PROVIDED BY THE FEDERAL GOVERNMENT, THEN THE HEALTH DEPARTMENT.
WHY HAVE WE IGNORED THAT EXISTING PROBLEM, WHICH IS LONG-TERM AS HAS BEEN THE SEWER, THE MAN THAT I DON'T KNOW, MAYBE IT'S MAYBE BECAUSE ENGLISH IS NOT MY PRIMARY LANGUAGE.
[01:05:01]
ME.I'M, I'M TRYING, I, WE, WE COVERED A LOT OF GROUND THERE.
SO I'M GOING TO TRY AND LET ME, LET ME SYNTHESIZE IT FOR YOU A LITTLE BIT.
WHY ARE WE NOT INVESTING IN DOWNTOWN WEST COVINA, BUT JD, UH, A BUDGET IS A STATEMENT OF A COMMUNITY'S PRIORITIES.
WHEN THE RECOVERY ACT MONEY CAME IN IN THIS ROOM, SEVERAL OF THESE PEOPLE WERE PRESENT.
I THINK YOU WERE, WE HAD THIS CONVERSATION ABOUT RECOVERY ACT.
AND AS I RECALL, THE, THE ANSWER AT THAT MOMENT WAS I'M YOUR CITY MANAGER.
SO I'M RECOMMENDING THAT THE CITY FACILITIES TRY TO BE BROUGHT TO STANDARD BECAUSE THEY WERE IN REALLY BAD SHAPE BACK.
THEY STILL ARE THE CITY'S ACTIONS TO HELP GLENDORA, UM, HAVE BEEN ONGOING.
WE'VE ALLOWED A, UM, OPEN AIR PERMIT FOR PEOPLE TO HAVE THEIR BUSINESSES BE OUTSIDE.
WE'VE SUPPLEMENTED SOME LANDSCAPING.
WE'RE DOING SOME REPAIRS ALONG THE STREET.
THE, THE MOST RECENT CONVERSATIONS WITH THOSE OWNERS.
AND IT'S REALLY A THING FOR THEM TO DECIDE IS DO THEY WISH TO SUPPLEMENT THE LEVEL OF SERVICE AT THE CITY, PROVIDE CITYWIDE.
THE NUMBER ONE ISSUES, AS I'VE HEARD THEM ARE SAFETY AND SECURITY.
WE'VE HAD PROBLEMS WITH PEOPLE, UM, CAMPING ON DOORSTEPS.
WE DON'T LIKE TO TALK ABOUT URINATION AND DEFECATION THAT AREN'T CONDUCIVE TO A HEALTHY BUSINESS CLIMATE OR HEALTH GENERALLY.
UM, AND I DON'T KNOW YET WHAT THAT ANSWER WILL BE, BUT WE'RE IN CONVERSATION WITH THAT COMMUNITY OF PEOPLE ABOUT WHAT THEY CHOOSE.
I DON'T KNOW WHETHER THE BUSINESS OPERATORS OR THE PROPERTY OWNERS WILL CHOOSE TO SUPPLEMENT WHAT THEY NOW GET.
I FRANKLY, HOPE THEY DO, BUT THAT'LL REALLY BE UP TO THEM.
AND A LOT OF PEOPLE ARE WATCHING IT AND COMMENTING ON IT, BUT THOSE ARE PEOPLE THAT AREN'T BEING ASKED TO CONSIDER PAIN.
SO WE'RE GOING TO BE MEETING WITH THEM AGAIN IN THE NEXT COUPLE OF WEEKS, AND WE'LL SEE WHAT THEY SAY.
I THINK WHAT WE'RE GOING TO HEAR IS THEY'RE NOT HAPPY WITH THE SITUATION THERE AND THEY WANT TO TRY AND BETTER IT.
I KNOW JUST TODAY, OUR HOPE TEAM WAS OUT THERE.
I'M WORKING WITH A HOMELESS MAN THAT WAS CAMPED IN THE PARKING LOT, ACROSS FROM THE ALFARO DENTIST.
I KNOW JUST A COUPLE OF DAYS AGO, ONE OF THE BUSINESSES, A REAL ESTATE OFFICE ON THIS STREET HAD A MOUNTAIN OF MULCH ILLEGALLY DUMPED ON HIS PROPERTY.
I MEAN, THE PROBLEMS ARE CONSTANT.
AND, UM, I THINK WE'RE GOING TO TRY AND DO BETTER THERE.
WELL, I'M GLAD TO HEAR THAT, BUT AS FAR AS, UM, OUTSIDE EATERY, WE WERE, IF NOT THE LAST CLOSE TO, IN ALLOWING THAT TO TAKE PLACE HERE IN WEST COVINA, COVINA WAS OUT THERE WAY BEFORE US IN, UM, FAR GREATER WAY.
SO HONESTLY, WE, WE WERE JOHNNY COME LATE WHEN IT COMES TO OUT OUTSIDE EATERIES, AH, TO THE POINT WHERE BUSINESS SUFFERED GREATLY.
AND AS FAR AS DOING LITTLE THINGS TO IMPROVE DOWNTOWN, REPLACING A FEW LIGHT BULBS THAT HAVE BEEN OUT IS NOT TO ME, AN INDICATION OF THE CITY, PUTTING FORTH A GOOD EFFORT IN TERMS OF SHOWING THE OWNERS AS WELL AS THE BUSINESS OWNERS, THAT THEY WILL MEET UP TO THEIR RESPONSIBILITY, THEIR FIDUCIARY RESPONSIBILITY WITH REGARDS TO SECURITY, WHICH YOU ALREADY ADMITTED WAS A CONCERN FOR THE BUSINESS OWNER AND SHOULD BE LIKEWISE FOR THE CITY.
UM, WE HAVE HAD AN INCREASE OF THE HOMELESS IN THAT AREA, MORE SO NOW THAN EVER.
AND THAT'S ON TOP OF THE EFFECTS OF THE NEGATIVE EFFECTS THAT, THAT THE BUSINESS IS THERE HAVE UNDERGONE SINCE THE PANDEMIC IN THE CITY, WILLIE HAS NOT STEPPED UP TO THE PLATE TO HELP THAT PART OF THE CITY.
BUT I SEE A GREAT FOCUS ON RECREATIONAL ACTIVITIES, WHETHER IT'S A FUNDRAISER AT THE SPORTSPLEX, WHICH IS REALLY NOT THE INTENT FOR THAT, THAT SITE, THAT SITE WAS MEANT TO BE FOR SOFTBALL.
UM, NOT FOR CARNIVALS OR 4TH OF JULY.
NOT THAT YOU CAN USE IT FOR THAT, BUT CONSIDERING THE SITUATION AS IS TODAY WHERE YOU NEED TO UPGRADE AND INVEST SO MUCH OF THE AMERICAN RECOVERY FUNDS, UH, AND OTHER SHIFTING OF MONIES TO TRY TO BRING THOSE AREAS UP TO PAR WHILE IGNORING AN AREA THAT TONIGHT'S
[01:10:01]
PRESENTATION WITH REGARDS TO THIS BUDGET WORKSHOP IS REALLY FOCUSED ON THE TAXES THAT THAT VERY CENTER GENERATES.SO IT IS SO VITALLY IMPORTANT FOR THE CITY TO HAVE MADE THAT THE FOCUS RATHER THAN A HEALTH DEPARTMENT, I DON'T SEE THE RELATIONSHIP BETWEEN THE HEALTH DEPARTMENT AND DOWNTOWN.
IF I HAD TO RATE THE TWO IN TERMS OF RELATIONSHIP TO THE USE OF THE COVID MONEY, HEALTH DEPARTMENT WOULD JUST WOULDN'T EVEN BE IN THE RACE.
SO I HEAR YOU, I HEAR YOU ADVOCATING FOR OPERATIONAL MONEY AND MORE CAPITAL MONEY GOING TO THE BUSINESS DISTRICT.
I THINK YOU SHOULD ACTUALLY, HE IS ABSOLUTELY RIGHT.
THE PEOPLE THAT GOT HURT THE WORST IS THE RESTAURANT OWNERS AND ALL THESE MOM AND POP SHOPS.
ALL YOU DID WAS TAKE ALL THE MONEY AND YOU, UH, FOOT IT, MOST OF IT TO THE FIRE DEPARTMENT, I WAS LUCKING UP.
I SAID, THEY'VE GOT MILLION, NO, PROBABLY FALLEN AT $500,000 WORTH OF STUFF THAT YOU'RE BUYING FOR THEM.
I SAID, YOU KNOW WHAT? THERE'S OTHER PEOPLE BESIDES THE FIRE DEPARTMENT THAT HAS, THAT SHOULD BE TAKEN CARE OF.
AND THESE PEOPLE YOU HAVEN'T GIVEN THEM NOTHING.
I WANT TO ASK STEPHANIE IF SHE CAN FIND IT TO PUT UP THE SCHEDULE OF THE RECOVERY ACT MONEY.
SO YOU CAN SEE WHERE THAT MONEY WAS, WAS BUDGETED PROPERLY, BUDGETED TO GO.
BUT IT, IN TERMS OF THE FIRE DEPARTMENT, DEFICIENCIES, IT WAS EQUIPMENT WHICH IS MANIFESTLY STANDARD.
IT WAS STATIONS, ONE OF THEM SO BAD THAT IT'S BEING CONDEMNED AND TORN DOWN.
UM, NONE OF THIS WAS TO STANDARD.
AND SO THESE WERE THE APPROVED PRIORITIES WITHIN THE MUNICIPALITIES BUDGET.
AND, AND I'M, I'M ACTUALLY PROUD OF THE WAY THE CITY BUDGETED THESE MONIES.
I'M NOT IN ANY WAY ASHAMED OF IT.
I THINK THAT EVERY SINGLE ONE OF THESE EXPENDITURES WERE WERE NECESSARY.
IF YOU TALK TO THE FIREFIGHTERS, THEY WILL TELL YOU AS A PAID PROFESSIONAL DEPARTMENT, WE'RE ASKING TO DO A PAID PROFESSIONAL JOB WITH SUBSTANDARD FACILITIES AND SUBSTANDARD EQUIPMENT.
IT'S NOT, IT'S JUST NOT RIGHT.
WELL, WHICH IS TRUE, BUT IT'S ABSOLUTELY TRUE.
BUT YOU'RE SELLING THE MAINTENANCE DEPARTMENT, THE PROPERTY THERE.
WHY DON'T YOU BUILD, WHY DIDN'T YOU BUILD A FIRE DEPARTMENT WHERE WHEREVER YOU'RE GOING TO BUILD IT, INSTEAD OF SPENDING ALL THIS EXTRA MONEY FOR ME, YOU HAVE TO HOUSE THEM HERE.
YOU HAVE TO DO THIS, YOU HAVE TO DO THIS SORT OF THING.
IT'S COSTING ALL THIS EXTRA MONEY THAT COULD BE SPENT ON THE BUILDING.
I SAID, WHAT YOU'RE DOING IS YOU'RE PUTTING THE CART BEFORE THE HORSE, IN REGARDS TO THE ARPA FUNDING.
I WILL NOTE THAT A LOT OF IT IS RESTRICTED USE, UM, RESTRICTED USE TO FIVE MAIN CATEGORIES.
OTHER REASON WHY YOU SAW A LOT OF IT GO TO FIRE, REALLY AMBULATORY SERVICES IS BECAUSE ONE OF THE MAJOR USES WAS SUPPORTIVE HEALTH EXPENDITURES.
THAT'S ALSO WHY WE WERE ABLE TO CATEGORIZE A LOT OF THE HEALTH DEPARTMENT BECAUSE HEALTH ASSESSMENT NEEDS PLANS IS SPECIFICALLY ONE OF THE ELIGIBLE, UH, USES OF THAT FUNDING.
IN REGARDS TO THE 19 MILLION, WE GOT 9 MILLION OF THAT OR MORE HAS TO BE SPENT IN THOSE PRIMARY CATEGORIES.
ONLY 10 MILLION CAN BE SPENT ON GENERAL MUNICIPAL USE.
UM, AND SO WITH THAT GENERAL MUNICIPAL USE IS WHAT WE WERE LIMITED TO.
AND A LOT OF WHAT YOU SEE IN THE FIRE DEPARTMENT CATEGORIES WAS UTILIZING UP THAT 9 MILLION, UM, THAT YOU SEE THE ADDRESSING THE BUSINESSES IS VERY SPECIFIC IN HOW YOU CAN DO THAT.
SO YOU CAN'T JUST GIVE OUT FUNDING AND, UH, TO A BUSINESS THERE, THE, UH, THIS ROUND OF ARPA FUNDING WAS VERY EXCLUSIVE TO HOW YOU CAN ADDRESS THOSE NEGATIVE IMPACTS.
ALRIGHT, GIVE ME MONEY OR ACTION.
BUT IN TERMS OF UPBRINGING THAT WOULD FALL UNDER PROVIDING GOVERNMENT SERVICES TO THE EXTENT OF REVENUE LOSS, BECAUSE WE WOULD BE DOING THINGS THAT A GOVERNMENT WOULD NORMALLY BE DOING STREETS AND THINGS LIKE THAT.
WELL, THE FIRE ALSO PROVIDES EMS AMBULATORY SERVICES.
SO THE AMBULANCES WERE FUNDED OUT OF THEIR EKG, HEART RATE MONITORS, THINGS THAT WERE SPECIFIC TO THE RESPONSE TO COVID-19.
SO THAT HEALTH DEPARTMENT IS A SPECIFIC HEALTH ASSESSMENT
[01:15:01]
AND NEEDS TO FORMULATE A HEALTH DEPARTMENT PLAN IS THE SPECIFIC CATEGORY WITHIN THE ARPA FUNDING I ALREADY SPOKE.UH
I WELCOME IT AND APPRECIATE THAT YOU'RE HERE TONIGHT AND THAT YOU'RE CONTINUING TO SHARE YOUR PRIORITIES.
I CAN TELL YOU EVER BEEN ON CIVIL TOO.
I, I, WASN'T TRYING TO SAY THAT.
I JUST WANT TO CHECK AND JUST CHECKING BECAUSE THE INFERENCES, I I'M ENJOYING THE CONVERSATION.
THAT, THAT THING THAT THE CITY HAS TO PLACE FIRST IS THE SYSTEM OF CARE THAT FOLLOWS WHEN ONE OF US CALLS 9 1, 1, EVERYTHING ELSE IS NICE TO HAVE, AND THAT'S ESSENTIAL TO HAVE.
SO WHEN YOU LOOK AT THIS LIST, THINGS LIKE NEW AMBULANCES, THINGS LIKE FIRESTATION REPAIRS FOR $4 MILLION, A NEW LADDER TRUCK, THIS EQUIPMENT DOESN'T LAST FOREVER.
AND MOST OF IT'S AT THE END OF ITS USEFUL LIFE.
YOU'D WANT YOUR FRONTLINE EQUIPMENT IN FRONTLINE SERVICE FOR ABOUT 10 YEARS RULE OF THUMB.
AND THEN YOU CAN'T ACT SURPRISE AT THE END OF THAT TIME AND YOU MOVE IT INTO REVERT STATUS, RE RESERVE STATUS THAT IT'S WORN OUT.
AND SO WE'RE TRYING TO MANAGE IT BETTER BY GETTING IN FRONT OF THAT CURVE AND PURCHASING SOME OF THIS EQUIPMENT BEFORE WE'RE BROKEN DOWN BY THE SIDE OF THE ROAD.
SO JUST TO REPEAT FROM MY PERSPECTIVE, THEN THE SYSTEM OF CARE THAT SUPPORTS 9 1, 1 IS THE MOST IMPORTANT THING WE DO.
AND I AGREE WHOLEHEARTEDLY BELIEVE THAT DEEP INSIDE, AND I'M NOT GOING TO APOLOGIZE FOR, AND I THINK EVERYONE HERE TONIGHT AGREES WITH YOU.
FULL-HEARTEDLY HOWEVER, I WANT TO ALSO SAY THAT I APPRECIATE THIS BUDGET MEETING FOR THE REASON THAT YOU'RE AT LEAST DISCLOSING UPFRONT, THAT YOU WILL BE ADDING AN ADDITIONAL WHAT 14 EMPLOYEES TO THIS COMING 14 YOU'RE OFFSET.
AND IT, I MEAN, IT'S KIND OF OFFSET BY THE EIGHT, UH, FROZEN POSITIONS.
YOU'RE, YOU'RE TAKING THOSE OFF THE BOOKS, BUT YOU'RE ADDING 14 NEW, OR THEY'RE ABOUT NEW EMPLOYEES TO THE CITY THAT HAS COME AS A DISCLOSURE IN THIS BUDGET MEETING.
HOWEVER, LAST YEAR YOU TOLD ME J D WHERE DO YOU WANT ME TO GET THE MONEY TO HELP THE POLICE, WHICH IS ALSO A PRIORITY LIKE THE, THE, THE FIRE DEPARTMENT.
AND I WALKED OUT OF HERE WITH THE IMPRESSION THAT WE DIDN'T HAVE THE MONEY.
LO AND BEHOLD, THERE WAS AN FOLLOWUP MEETING FOR APPROVING THAT BUDGET.
AND I THINK THEY CALL IT TAN, TAN, TAN, WHICH BASICALLY THEY ADDED, YOU KNOW, 10 EMPLOYEES TEND TO IS 10 THAT, AND I DIDN'T EVEN SEE YOU JUMP UP AND SAY, WHOA, WAIT A MINUTE.
I JUST FINISHED SELLING J D WE DON'T HAVE THE MONEY TO FIX THE BATHROOM.
WHAT HAPPENED AT LEAST IN THIS CASE.
AND I APPRECIATE THE HONESTY AND AT LEAST A DISCLOSURE OF NEW EMPLOYEES ON THE LAST RUN, I WAS LEFT A LITTLE BIT DISAPPOINTED IN TERMS OF TRANSPARENCY.
AND WITH THAT, I HAVE TO GO CATCH A BOAT.
SO I BET EVERYBODY GOOD NIGHT.
CAN YOU BUILD KAYLA ANGIE, TAKE A TURN.
STEPHANIE, THE ONE YOU HAD THE ONE THROUGH FIVE, I WANT TO KIND OF UNDERSTAND YOUR INTERPRETATION OR THE CITY'S INTERPRETATION WHEN IT SAYS SUPPORT HEALTH EXPENDITURES.
EVERYBODY IN THIS ROOM WOULD AGREE THAT THAT'S, BUT WHERE DOES IT SAY CREATE A HEALTH DEPARTMENT? HOW WAS THAT INTERPRETED IN CREATION OF THE HEALTH DEPARTMENT IN THE INTERIM FINAL AND FINAL REPORT? THEY HAVE A LIST OF ACTIVITIES THAT IS ELIGIBLE AND PLANNING FOR HEALTH DEPARTMENT ACTIVITIES, SUCH AS HEALTH DEPARTMENT PLANS AND ESTABLISHING HEALTH DEPARTMENT PROGRAMS IS ONE OF THE SPECIFIC ELIGIBLE ITEMS. UM, SO THESE ARE JUST VERY, VERY BROAD CATEGORIES.
THE ACTUAL TAX THAT GOES INTO THE IMPLEMENTATION OF THESE IS 300 PAGES LONG THAN I READ THROUGH.
UM, SO IT GETS INTO THE NITTY GRITTY, UM, AND IT IS HARD TO ACTUALLY USE ALL OF IT IN RELATION TO THE CHUNK THAT WE HAVE TO USE TOWARDS THE BUCKETS THAT THEY'RE CONSIDERING EFFECTED TO KNOW COVID-19, WHICH IS THE ONE TO, UM, FOUR AND A ONE, TWO AND FOUR.
AND THEN I WOULD SAY FIVE, WE HAVE SET ASIDE MONEY IN SEWER THAT WE'RE PLANNING ON USING AND HAVE PLANS OR FUNDING SOURCES IN THE FUTURE PLANS FOR THAT, UM, AS TO WHY WE DIDN'T LOOK FOR THAT AND PROVIDING IT.
[01:20:01]
OUR REALLY ONLY OPEN AREA IS THE 10 MILLION THAT WE RECEIVED FOR THE EXTENT OF REVENUE TO USE ON GOVERNMENT SERVICES.WELL, ALL RIGHT, BILL, YOU'RE NEXT? I PROMISE.
YEAH, IT'S ALONG THE SAME THING, BECAUSE YOU SAID FIRST RESPONDERS, YOU KNOW, WE WANT OUR AMBULANCE, WE, WHEN SOMETHING HAPPENS EMERGENCY, I DON'T SEE THE HEALTH DEPARTMENT SERVING THAT.
I THINK IT'S GOING TO MAKE IT WORSE.
I DON'T THINK WE'RE GOING TO HAVE THE SERVICES THAT WE HAVE IN LA COUNTY.
SO WE ARE NOT GOING TO HAVE THE SAME LEVEL OF HEALTHCARE THAT WE HAVE RIGHT NOW.
SO I THINK IT'S ACCORDING TO WHAT YOU SAID, DOESN'T MAKE SENSE.
IT TOTALLY DOESN'T MAKE SENSE.
WELL, UH, CAN WE GO BACK TO THE ONE TO FIVE, AGAIN, MY MIND, UH, THE HEALTH DEPARTMENT IDEAS PIE IN THE SKY AND, AND, AND IT GETS THE PRIORITY, BUT THE REGIONAL BOARD AND OUR TATTERED SEWER SYSTEM SEEMS LIKE REALITY TO ME.
I MEAN, WE'RE DOING PIE IN THE SKY, NUMBER ONE, AND IGNORING THE REGIONAL BOARD AND THE TATTERED SEWER SYSTEM THAT WE'RE TALKING ABOUT.
COULD I HAVE SOME MORE COMMENTS ON THAT? WE ARE INVESTING IN THE SEWER SYSTEM AND HAVE PLANS FOR THAT AND FUNDING PLANNED OUT FOR THAT.
SO MAINLY WE USE UTILIZE THE MONEY ON THINGS THAT WE DON'T HAVE ANY DEDICATED REVENUE SOURCES FOR, INSTEAD OF, I BELIEVE IT WOULD BE A FAIR STATEMENT UNLESS STUDY MANAGER WOULD LIKE TO ADD TO THAT.
I MEAN, TO MY MIND, UH, WHAT WE, WHAT WE DEDICATED TO, NUMBER ONE, SHOULD'VE GONE TO NUMBER FIVE.
AND, AND, YOU KNOW, THE PEOPLE OF WEST COVINA, I DON'T THINK THEY WOULD, UH, YOU KNOW, DISAGREE WITH WHAT I JUST SAID TOO STRENUOUSLY.
UH, AND YOU KNOW, YOU'RE GONNA, YOU'RE GONNA COME TO THE, THE, THERE'S GOING TO BE A COUNCIL MEETING AND YOU'RE GONNA SAY, WELL, WE NEED TO RAISE THE FEES BECAUSE OF OUR TATTERED SEWER SYSTEM.
BUT, BUT, BUT WE DIVERTED FUNDS TO NUMBER ONE AND IGNORED THE NEED.
NOW WE'RE IN A, WE'RE IN BAD SHAPE AND WE NEED MORE FEES, YOU KNOW, ATHEN NEEDS AS NEEDS A LOT MORE MONEY AND, AND WE NEED MORE MONEY FOR OUR SEWER SINKING FUNDS.
SO, YOU KNOW, THAT'S MY COMMENT.
AND WHAT'S YOUR RESPONSE ON THIS TOPIC OR A DIFFERENT ONE.
TO GO AHEAD, MARSHA, I'M GOING TO STAND OVER HERE CAUSE I'M GOING TO HAVE AN UNPOPULAR OPINION.
UM, I JUST WANT TO PLAY DEVIL'S ADVOCATE WHEN THIS WAS PRESENTED TO US.
I FORGOT WHEN LAST YEAR, SO TIME HAS LEFT ME.
UM, I WORKED FOR AN AGENCY THAT WAS A RECIPIENT OF MANY, MANY, YOU KNOW, UM, COVID GRANTS HAVING TO PUT THIS TOGETHER, UH, MYSELF, OR, UH, ASSIST ON THAT WHEN THIS WAS PRESENTED, I THOUGHT IT WAS SUCH A SMART, SMART DECISION.
I'M NOT GOING TO AGREE WITH EVERY SINGLE LINE NOBODY IS, BUT HAVING SAT THROUGH THESE MEETINGS AND PARTICIPATED WITH THE CITY'S FINANCES OVER THE YEARS, IT MADE SENSE AS SOON AS EACH LINE WAS PRESENTED, THAT MAKES SENSE.
ESPECIALLY LIKE FIRE, THAT'S BEEN SITTING ON OUR CAPITAL PROJECTS WISHLIST FOR MANY, MANY YEARS.
THIS IS ONE TIME MONEY, HEY, LET'S HELP GET OUT OF THIS HOLE.
SO, UM, I JUST WANTED TO SAY THAT THAT WAS MY OPINION ON IT.
AGAIN, WE'RE NOT GOING TO AGREE ON EVERY SINGLE THING THEY'RE GOING TO SPEND IT ON AND WE CAN'T TACKLE EVERY CATEGORY BECAUSE IT'S SO SPECIFIC.
THOSE RULES ARE SO SPECIFIC AS TO WHAT YOU CAN SPEND IT ON AND YOU HAVE TO MAKE THE BEST CHOICE YOU CAN TO TACKLE THE CATEGORIES THAT YOU CAN'T, AND, AND THEY REVIEW, YOU HAVE TO SUBMIT, REPORTING RIGHT AWAY AS TO WHAT YOU'RE SPENDING IT ON.
AND THEY'RE GOING TO LOOK AT EVERY NICKEL AND DIME.
SO I THINK, YOU KNOW, THIS IS THE LEAST OF OUR PROBLEMS RIGHT NOW, BUT THANK YOU.
I WILL ALSO ADD THAT THE TIMEFRAME FOR USING THIS MONEY IS A LOT MORE CONDENSED THAN NORMAL FEDERAL FUNDING SPENDING.
SO EVEN WHEN YOU TALK ABOUT SEWER PROJECTS, THOSE CAN EXTEND OUT A LOT LONGER THAN YOUR TRADITIONAL.
WHEN YOU GET INTO DESIGN CONSTRUCTION PHASES, ALL RIGHT, I'M GOING TO CHANGE TOPICS.
NOT THAT I DON'T DISAGREE THAT THE HEALTH DEPARTMENT'S NOT NEEDED.
UM, LET'S TALK ABOUT THE PENSION OBLIGATION BONDS.
I THINK YOU MENTIONED THAT AS ONE OF THE BONDS UP THERE, WHAT WAS THE TOTAL ON THE PENSION OBLIGATION BONDS? I'M SURE DAVE HAS IT, THE NUMBER OFF THE TOP OF HIS HEAD, BUT IT WAS LIKE 200 AND SOME MILLION, CORRECT.
[01:25:01]
THE UNFUNDED LIABILITY WAS 204, RIGHT? SO THE UNFUNDED LIABILITY WAS 204.SO I WAS WAITING FOR ONE ELSE TO FINISH ON THE OTHER TOPICS.
I KNEW I WAS GOING TO FORCE YOU TO FLIP SLIDES.
SO THE TOTAL BOND ISSUE IS 204 MILLION.
HOW MUCH OF THAT? 204 MILLION WENT TO PURSE TO PAY OFF THE PENSION OBLIGATIONS, THE UNFUNDED LIABILITY.
SO LIKE HOW MANY STARS ARE IN THIS GUY? THE ANSWER IS ALL OF THEM.
SO THE CITY DID IN THAT ISSUE RESERVE TO ITSELF, THE LAST YEAR'S PAYMENT ON THE BOND.
SO THE BOND HOLDERS HAD A SECURITY AS IS COMMON IN THESE TRANSACTIONS THAT IF THE CITY WERE EVER TO DEFAULT, IT WOULD ALWAYS HAVE IN RESERVE ONE YEAR'S PAYMENT, BUT AT CLOSE, THE MONIES WENT IMMEDIATELY TO CALPERS.
SO THAT SAME AMOUNT OF PENSION DEBT WAS PAID OFF AT CALPERS WHEN THIS NEW DEBT WAS TAKEN ON.
IF I REMEMBER CORRECTLY, THE, THE, THE UNFUNDED LIABILITY WAS ABOUT A HUNDRED AND EIGHTY FIVE HUNDRED EIGHTY 6 MILLION AT THAT TIME.
SO, I MEAN, I KNOW WE BORROWED 204, AND I KNOW YOU'RE TALKING ABOUT HOLDING SOME BACK KIND OF LIKE A FIRST AND LAST PAYMENT ON A, ON A RENT TYPE THING.
BUT, BUT IT'S, IT'S WHAT I'M TRYING TO UNDERSTAND IS WHAT'S THE NUMBER, SEE, THERE WAS A, A MILLION DOLLARS IN THAT TRANSACTION FOR A NEW FINANCIAL ACCOUNTING SOFTWARE SYSTEM OR SOMETHING, BUT ALMOST EVERY BIT OF IT WENT RIGHT DIRECTLY AND IMMEDIATELY TO CALPERS.
HOW MUCH OF THAT BOND WENT INTO THE RESERVE FUND? BECAUSE I KNOW THAT THE RESERVE FUND IS BEING TOUTED RIGHT NOW AS BEING PROPPED BACK UP TO A CERTAIN NUMBER.
AND THEN THE RESERVE FUND IS NOW BEING DIFFERENT KINDS OF RESERVES.
YOU'RE TALKING ABOUT CITY GENERAL FUND ON NOW I AM.
BECAUSE, BECAUSE MY UNDERSTANDING WAS SOME OF THAT TO THE PENSION BOND.
SO MY UNDERSTANDING OF SOME OF THIS MONEY THOUGH, CAME INTO THE RESERVE FUND FOR THE CITY'S GENERAL FUND FUND RESERVES, IF YOU WANT TO CALL IT.
SO THE WHOLE 204 MILLION ON THE, ON WHAT'S FOR PENSION WENT TO PENSION 100% OF IT, EXCEPT FOR THE FIRST AND LAST PAYMENT MENTALITY.
I RECALL THERE WAS LIKE A MILLION DOLLARS FOR A CAPITAL PROJECT, WHICH I BELIEVE WENT INTO THE CIP, WENT INTO THE CIP FOR THE ELECTRONIC FINANCIAL MANAGEMENT SYSTEM.
SO NONE OF THE, UM, LEASE REVENUE BOND WENT TO THE CITY'S GENERAL FUND RESERVES AND, AND THE CITY STILL HAD A PORTION OF ITS UNFUNDED DEBT AT CALPERS NOT PAID OFF BY THIS.
WE'RE CONTINUING TO MAKE SEPARATE PAYMENTS AS WE WOULD HAVE MADE ANY WAY TO CALPERS.
UM, SO JD MENTIONED A FEW MINUTES AGO, UH, AND REFERRED TO IT AS A 10 PLUS 10 PLUS 10 THAT CAME UP AT LAST YEAR'S BUDGET THAT, UM, HONESTLY, DAVE, I THINK IT SIDESWIPED YOU UP THERE AS WELL.
I DON'T THINK YOU WERE PREPARED FOR THAT TO BE VERY HONEST, BASED ON YOUR FACIAL EXPRESSION.
UM, BUT I KNOW THE CITY COUNCIL ACTUALLY JUST MAGICALLY DECIDED TO HIRE 30 PEOPLE LAST YEAR, WHICH THAT INCREASES OUR PENSION OBLIGATIONS.
AGAIN, WITH THOSE 30 PEOPLE HAVE THOSE 30 ALL BEEN HIRED.
TIFFANY, DO YOU KNOW? I DON'T KNOW IF ALL 30 OF THEM HAVE OFFICIALLY BEEN HIRED.
I KNOW PD HAS MADE GREAT STRIDES, BUT SOME OF THEM ARE STILL NOT ON THE STREETS YET.
AND THEN I KNOW CODE ENFORCEMENT HAD NOT HIRED ALL OF THEIRS AS OF A COUPLE OF WEEKS AGO.
THEY'RE STILL IN RECRUITMENT THERE, WHICH THOSE ARE PART-TIMERS.
UM, AND, AND THE ANSWER IS NOT QUITE OKAY, BUT WE'RE STILL IN PROCESS AND THEY'RE STILL IN THIS BUDGET, IN THE FUNDING.
CAUSE THAT WAS ABOUT A $2.5 MILLION INCREASE AND EXPENDITURES TO THAT BUDGET THAT WAS SUPPOSEDLY BALANCED.
AND THEN ALL OF A SUDDEN IT WASN'T BASED ON THE 10, 10, 10.
SO LIKE J D I ECHO THE FACT THAT I LIKED THE TRANSPARENCY HERE OF TALKING ABOUT THE HIRING OF PEOPLE.
BUT AGAIN, I GO BACK TO THE PURSE, I GO BACK TO THE PENSION OBLIGATION.
BONDS ARE THE LEAST OBLIGATE LEASE REVENUE, BONDS, WHATEVER THEY WERE WHEN WE LEASED OUR STREETS.
UM, BUT NOW WE'RE BUILDING A ADDITIONAL, HIS OBLIGATION BY HIRING A LOT OF PEOPLE.
SO WE PAID OFF A WHOLE BUNCH AND I KNOW WE'RE SAVING ON AN INTEREST RATE.
BUT THE, THE REALITY IS WE HAVEN'T DUG OURSELVES OUT OF THAT HOLE YET.
AND THEN WE'RE HIRING A WHOLE BUNCH OF PEOPLE.
AGAIN, I'M NOT SAYING WE DON'T NEED PEOPLE.
I MEAN, I THINK THERE'S SOME PEOPLE WE DO NEED TO HIRE, BUT MY CONCERN IS, IS, YOU KNOW, AS A CITY, ABOUT 5, 6, 7 YEARS AGO, WE LAID OFF A WHOLE BUNCH OF OUR MAINTENANCE PEOPLE, OUR ENTIRE DEPARTMENT.
AND WE WERE GOING TO SUBLET OUT.
ONE OF THE COUNCIL MEMBERS UP HERE HELPED THAT CHARGE A LITTLE BIT AND SAID, OH YEAH, WE CAN FARM IT OUT AND MAKE, YOU KNOW, IT'LL BE BETTER.
UM, AND IT APPEARS THAT THAT PERSON IS NOW REALIZING THAT WE CAN'T FARM IT OUT.
[01:30:01]
MONEY'S NOT REALLY BACK.I KNOW WE HAVE MORE THAN SALES TAX, SO I'M NOT DISAGREEING WITH YOU ON THE REVENUE.
MY CONCERN IS THERE'S MORE TO IT THAN WHAT'S THERE UPFRONT.
AND THERE'S A LOT OF HERS, CAUSE THERE'S A LOT OF EMPLOYEE COSTS THAT AS AN EMPLOYER, YOU HAVE THAT EMPLOYEES DON'T SEE OTHER THAN SALARY, LIKE YOU PAY PART OF THEIR TAXES, YOU PAY A LOT OF THEIR STUFF OR THE CITY DOES.
BUT MY CONCERN IS, IS THAT IT LOOKS LIKE WE'RE ON A HIRING BINGE.
I JUST DON'T THINK WE'RE FINANCIALLY THERE YET.
AND THAT'S MY CONCERN IS THAT WE'RE GOING TO SLOW DOWN OUR RECOVERY IF WE'RE INDEED RECOVERING BECAUSE I, I BELIEVE THE, THE RESULT COULD BE BAD OTHERWISE.
UM, IF I MAY, ONE THING I WOULD ADD IN OUR RECENT MOU NEGOTIATIONS WITH EACH OF OUR BARGAINING UNITS, WE HAVE WORKED IN COST SHARING FOR CALPERS SPECIFICALLY AND TO EACH OF THOSE AGREEMENTS.
SO AS WE MOVE FORWARD AND HIRING NEW EMPLOYEES, THEY WILL BE EXPECTED TO HAVE SOME OF THAT BURDEN ON THEMSELVES FOR OUR COST SHARE.
SO THAT WASN'T IN PRIOR YEARS, YOU'RE REFERRING TO THE 3% MORE THAT THEY PAY INTO THEIR OWN RETIREMENT, WHICH IS HELPING THAT.
WE KNOW WHAT THAT NUMBER, I'M SORRY.
DO WE, DO WE KNOW THAT NUMBER THOUGH, THAT WE'RE GOING TO SAVE AS A CITY WHERE THEY'RE NOW PAYING MORE OF THEIR COST SHARE? IT'S NOT COMING OUT OF OUR GENERAL FUND.
I, YOU, I DON'T KNOW THE NUMBER OFF THE TOP OF MY HEAD, BUT IT'S BASED IN OUR SALARY PROJECTIONS FOR THE YEAR AND REDUCED BY THAT AMOUNT.
WELL, IT'S, IT'S, I DON'T KNOW IF IT'S STRAIGHT LINE, BUT IF THEY PAY AN ADDITIONAL 3%, THAT'S 3% OF PAYROLL.
THAT PROBABLY GIVES ME AT LEAST A PLACE TO LOOK.
AND SO I, I KNOW WHAT YOU'RE SAYING.
IT'S, IT'S THE KIND OF WORK THAT OCCURS AT THE TABLE.
I MEAN, I'VE SAID IT MANY TIMES THE EMPLOYEES ARE OUR BIGGEST ASSET AND WE'RE MEETING AND CONFERRING IN GOOD FAITH AT THE TABLE.
SO WHEN POLICE MANAGEMENT BRINGS THEIR CONTRIBUTION UP TO 15% IS VERY SIGNIFICANT TO ME WHEN, WHEN THE POA BRINGS THERE'S FROM NINE TO 12, IT'S VERY SIGNIFICANT TO ME.
SO AT THIS TIME I'VE SEEN MOST OF THE, THE BARGAINING UNITS HAVE MADE STRIDES IN THAT, BUT THERE'S STILL ONE BARGAINING UNIT.
I HAVEN'T SEEN MAKE THAT STRIDE.
WHERE ARE WE AT WITH THAT AT THE TABLE? OKAY.
OH, IT'S, IT'S A CONVERSATION THAT BELONGS THERE AND, AND WE'RE, UM, WE'RE GOING TO KEEP, KEEP TALKING, UH, TO FOLLOW UP ON STEVE'S, UH, UH, HERS, UH, UNFUNDED MANDATE, UH, QUESTION, UM, WHERE, UH, IT WAS AN, IT WAS A NOVEL IDEA TO USE THE STREETS AS, AS, UH, AS COLLATERAL.
UH, WHAT CAN THE, WHAT CAN THE, UH, WE CAN PURSE, UH, DO TO US IF WE EVER GO TO, UH, INTO DEBTOR'S PRISON BECAUSE, UH, BECAUSE WE HAVE OUR STREETS AS COLLATERAL.
I MEAN, UH, YOU KNOW, FOR THAT, THE REFINANCE, UH, WHAT RISKS, UH, WHAT RISKS ARE INHERENT IN, IN THAT SITUATION, HAVING OUR STREETS AS COLLATERAL, IF WE GO INTO DEBTOR'S PRISON, THE TRANSACTION WAS A LEASE REVENUE BOND THAT THE STRUCTURE IS EMPLOYED BY A LOT OF CALIFORNIA CITIES WHEN THEY DO THESE KINDS OF BOND ISSUES.
THERE THERE'S NO SECURITY INTEREST PROVIDED BY THE CITY THAT COULD BE FORECLOSED UPON THE CITY IS NOT IN A DOOMSDAY SCENARIO, NOT GOING TO HAVE TO GIVE THE KEYS TO ITS STREETS, TO SOMEONE THAT'S NOT HOW IT'S SET UP.
IT'S NOT A REAL ESTATE PLEDGE.
AND, AND, UH, THE 10, 10, 10, THAT WAS JUST SPOKEN OF, UH, DID THAT BRING ANY, ANY THE EXISTING BARGAINING UNITS ARE ALL IN PLACE THAT DIDN'T BRING ANY ADDITIONAL BARGAINING UNITS INTO WEST COVINA? AND WE HAVE WITH THE SAME NUMBER OF BARGAINING UNITS THAT WE HAD BEFORE, SOME OF THEM HAVE A FEW MORE MEMBERS, BUT YEAH, THERE'S NO, THERE'S NO BRAND NEW UNIT THAT, THAT LABOR IS OWNED BY THE GROUPS THAT WE CURRENTLY NEGOTIATE WITH.
AND I HAVE ONE LAST QUESTION, AND THEN I'LL LET YOU GUYS HAVE YOUR EVENING.
WE CAN TALK ANOTHER TIME, THE LAST THING, AND I MISSED, LIKE I SAID, A COUPLE SLIDES EARLY.
I KNOW YOU OFFERED TO GO OVER IT.
SO I'M JUST GONNA ASK YOU A QUESTION THAT MAY HAVE BEEN COVERED EARLIER SINCE THERE'S KIND OF, A LOT OF PEOPLE HAVE LEFT THE OVERTIME FOR THE FIRE.
DEPARTMENT'S ALWAYS BEEN A, HOW ARE WE ADDRESSING THAT IN THIS BUDGET?
[01:35:01]
IT'S BEING FULLY FUNDED.SO WE'RE, WHEN YOU SAY FULLY FUNDED, KIND OF EXPLAIN TO ME WHAT YOU MEAN BY FULLY FUNDED.
I'LL LET STEPHANIE EXPLAIN, BUT IT'S, IT'S, UM, BASED ON THE HISTORIC USE OF THE OVERTIME ACCOUNT, RATHER THAN SOME OTHER NUMBER THAT WE ALWAYS EXCEEDED.
SO IF THIS YEAR SHE'S GOT THE NUMBER AT 3.1 AND SHE'LL SEUSS ABOUT TO CORRECT ME, CAUSE SHE'S VERY ACCURATE.
THAT'S WHAT THE PROJECTION IS FOR THE COMING FISCAL YEAR WITH A SLIGHT INCREASE BASED ON WHAT WE ANTICIPATE THEIR SALARIES WILL INCREASE BY.
SO, UM, I'M THINKING THEY'LL PROBABLY IN THE YEAR ON 3.1.
UM, NOT EVERYBODY IN THE THIRD DEPARTMENT AGREES WITH ME ON THAT, BUT WHEN YOU LOOK BACK IN HISTORY, WHEN YOU SEE 3.6, 3.3, 3.2, 3.1 SEEMS LIKE A PRETTY REALISTIC NUMBER TO ME, UM, TO PLAN FOR.
DO I HOPE THAT THEY GET THAT? NO, BUT FROM A CITY STANDPOINT IN MY, UH, RESPONSIBILITY IS TO BALANCE A BUDGET.
I WANT TO MAKE SURE THAT WE'RE CONSIDERING THE REALISTIC, UH, SITUATION THAT WE'RE GOING TO FACE BY THE END OF THE YEAR.
SO THIS BALANCE TOOK THAT THIS BUDGET TOOK THAT INTO ACCOUNT, KNOWING THAT MORE, PROBABLY GOING TO BE BANE AROUND OVER 6 MILLION AND OVERTIME.
SO IN, IN YEARS PAST, AND I KNOW YOU WERE NOT IN CHARGE OF THE FINANCES BACK THEN.
SO I, I, I UNDERSTAND IN YEARS PAST, WE'VE HAD A SITUATION WHERE THEY'VE ALWAYS OVERDRAFTED THE OVERTIME AND IT'S USUALLY A MILLION OR SO MILLION AND A HALF OVER.
SO FORGIVE ME AND HOW THIS IS GOING TO SOUND.
BUT THE ANSWER IS TO SAY, OKAY, WE KNOW WE'RE GONNA OVERDRAFT IT.
SO LET'S JUST RAISE THE BUDGET TO THAT.
IS THAT KIND OF THE APPROACH? CAUSE MY ALWAYS UNDERSTANDING WAS WHEN YOU GO TO A DEPARTMENT AND YOU TELL THEM, YOU NEED TO KEEP UNDER A CERTAIN AMOUNT, UM, YOU KNOW, LOOK, THERE'S ALWAYS THINGS THAT HAPPEN.
AND I UNDERSTAND PUBLIC SAFETY IS A LITTLE BIT DIFFERENT CAUSE THERE'S NEEDS IN CERTAIN AREAS, BUT IT SEEMS LIKE THEY'VE CONSTANTLY EXCEEDED THEIR BUDGET.
THEY'VE CONSTANTLY EXCEEDED THEIR OVERTIME BUDGET.
AND NOW THE REWARD IS, OH, WE'RE JUST LET YOU DO IT NOW.
AND IT LOOKS LIKE WE HAVEN'T BALANCED BUDGET IT TO ME.
IT DOESN'T SEEM LIKE THERE WAS EVER AN INTENT BY THEM TO MAINTAIN A BUDGET, A TRUE BUDGET, YOU KNOW, WHAT THEY ACTUALLY SET FORWARD.
AND SINCE IT WAS ALWAYS AROUND THE SAME AMOUNT, MY CONCERN IS, IS NOW THAT THEY'VE BEEN REWARDED WITH EXCEEDING THEIR BUDGET.
THERE'S, THERE'S NO GUIDELINES.
THERE'S NO, UM, CONTROLS BECAUSE IT'S BASICALLY, OH YEAH, YOU'VE DONE IT FOR YEARS.
WHAT DOES, YOU KNOW, BUDGET IT THAT WAY AND IT'LL LOOK LIKE A BALANCED BUDGET AND WE'RE GOOD.
I MEAN, IT'S PROBABLY MORE OF A STATEMENT THAN A QUESTION TO YOU, STEPHANIE.
SO I UNDERSTAND IF YOU CAN'T ANSWER THAT, BUT UM, YOU KNOW, DAVID, I THINK YOU CAN UNDERSTAND WHERE I'M COMING FROM AND HOW THAT LOOKS.
IT LOOKS MORE LIKE A REWARD THAN IT IS ACTUALLY GETTING THEM TO MAINTAIN AND FOLLOW A BUDGET.
AND, AND AGAIN, THAT'S MY CONCERN.
WHEN WE TALK ABOUT RECOVERY HERE AND THE CITY TRYING TO DIG THEMSELVES OUT OF A HOLE, YOU CAN'T YOURSELF OUT OF A HOLE BY KEEPING, PUTTING DIRT BACK IN THE HOLE.
I MEAN, I THINK WE NEED TO LOOK AT THIS OBJECTIVELY.
THAT LEVEL OF OVERTIME IS PROBABLY NOT INCONSISTENT WITH A FIRE DEPARTMENT OF THIS SIZE.
IF WE LOOK AT PERCENTAGES AND OTHER INDEPENDENT CITY FIRE DEPARTMENTS, I THINK OUR EMPLOYEES ARE ENTITLED TO TAKE A SICK DAY WHEN THEY'RE SICK TO TAKE A VACATION DAY THAT THEY'VE EARNED TO BE OFF INJURED ON DUTY WHEN THEY'RE INJURED ON DUTY.
THAT MEANS OVERTIME BECAUSE WE'RE AT MINIMUM MANNING, BUT WHEN WE ROLL A PUMPER ENGINE AND IT'S GOT THREE MEN ON IT, WE DON'T HAVE ANY WOMEN.
THEY, UM, FILL THAT WITH OVERTIME TO DO LESS MEANS WE EITHER BROWN OUT A UNIT OR RUN SHORT, WHICH I DON'T THINK ANYBODY WANTS TO DO.
SO I THINK IT'S A, AN ISSUE THAT'S GOING TO REQUIRE MORE ATTENTION, MAYBE SOME CONVERSATIONS AT THE BARGAINING TABLE AND, AND WE'RE, WE'RE THERE NOW.
UM, BUT AS FOR THIS BUDGET, I THINK IT'S, IT'S MORE HONEST, STEVE, I THINK IT'S MORE REALISTIC AND I'M NOT GOING TO ARGUE THAT POINT.
CAUSE HONESTLY THE OTHER ONES I THOUGHT WERE AS JIM PUT EARLIER A LITTLE BIT OF A SHAM ANYWAYS.
SO I ACTUALLY HOPE THIS ONE'S MORE HONEST AND I DON'T DISAGREE WITH YOU ON THE POINT THAT YOU SAID, IF THEY'RE ENTITLED TO TAKE SICK TIME, DAY OFF VACATION, I GET THAT.
I, I'M NOT DISAGREEING WITH THAT STATEMENT AT ALL.
THE CONCERN I HAVE IS, IS WHEN YOU GO TO A DEPARTMENT MANAGER IN THIS CASE, IT'S A FIRE CHIEF AND YOU SAY, HERE'S YOUR BUDGET.
AND CONSISTENTLY THAT BUDGET, THAT ESTIMATED NUMBER THAT THEY'RE SUPPOSED TO STAY UNDER IS, IS SURPASSED IS, IS NOT FOLLOWED.
THEN AT THAT POINT, WHAT WE'RE DOING TO FIX THAT AS INSTEAD OF TELLING THEM, HEY, YOU KNOW WHAT? YOU GUYS AREN'T MEETING THE BUDGET
[01:40:01]
LIKE YOU'RE SUPPOSED TO AND HAVING THINGS THERE, WE'RE JUST GOING, OH, LET'S JUST GET MORE MONEY IN THE BUDGET.AND AGAIN, WE MAY HAVE MORE MONEY.
MAYBE IT WORKS, YOU KNOW, IT'S POSSIBLE.
BUT AGAIN, YOU CAN'T DIG YOURSELF OUT OF A HOLE.
IF YOU CONTINUE TO PUT DIRT BACK INTO THE HOLE THAT YOU'RE DIGGING OUT.
AND SO THE PROBLEM THAT I SEE IS WE'RE NOT SOLVING THE PROBLEM OF OVER TIME AND MAYBE IT IS BARGAINING TABLE DISCUSSIONS, BUT, BUT WE'RE NOT SOLVING THE PROBLEM.
WE'RE JUST CAVING TO THE FACT THAT THEY'RE GOING TO DO THIS OVERTIME.
I HONESTLY BELIEVE THEY'RE GOING TO INCREASE IT EVEN MORE BECAUSE NOW THEY HAVE A NEW THRESHOLD TO GO OVER.
SO AGAIN, I DON'T DISAGREE SICK TIME, VACATION TIME, ALL THE THINGS THAT ARE ENTITLED EVERY EMPLOYEE IS MY CONCERN IS THAT WE'VE REWARDED A DEPARTMENT FOR NOT STAYING WITHIN THEIR MEANS AND WITHIN THEIR BUDGETS WERE WHEN MOST OF THE OTHER DEPARTMENTS HAVE LIKE YOU GO THROUGH THE CITY AND THE DIFFERENT DEPARTMENTS, MOST OF THEM HAVE STAYED WITHIN THEIR, FOR THE MOST PART WHERE THEY COULD.
BUT THERE'S ONE, THAT'S ALWAYS A CONTINUAL PROBLEM.
AND THE REWARD IS, OH, WELL, YEAH, IT DOESN'T MATTER ANYMORE.
THAT'S A CONCERN THE WAY THAT YOU SAY OUR EMPLOYEES ARE OUR BEST ASSETS.
OUR STAFF CITY STAFF IS AMAZING, RIGHT? I SUPPORT OUR CITY STAFF IN ALMOST EVERY ASPECT FOR THE MOST PART.
THE, THE FACT THAT YOU HAVE SOME THAT GET SOME THAT DON'T, I DON'T SUPPORT ALL OF THAT.
I THINK THERE'S SOME THINGS WHERE THERE'S, THERE'S A LITTLE MORE EQUITY THAT NEEDS TO HAPPEN.
UM, AND THIS IS ONE WHERE I THINK IT'S A LITTLE LOPSIDED AND IT'S JUST MY OPINION.
AND AGAIN, IT'S NOT A STATEMENT.
YOU HAVE TO ANSWER A QUESTION, YOU HAVE TO ANSWER.
I'M JUST MAKING A STATEMENT MORE.
SO I HEAR YOU JUST TO FOLLOW UP ON THIS, THIS CONTINUOUS, UH, UM, THE, THE INSURANCE INDUSTRY IS REPORTING A, YOU KNOW, A PUBLIC HEALTH CRISIS THAT INCLUDES WEST COVINA AS WELL AS THE NATION.
AND IT SEEMS LIKE, UH, UH, WE'RE ABOUT TO SEE A SPIKE IN, UH, FIRE DEPARTMENT CALLS.
AND, UH, I, GOING BACK TO PAST HISTORY, I DON'T THINK IS GOING TO, UH, INFORM US THAT, UH, ABOUT THE FUTURE.
IF THE INSURANCE INDUSTRY IS RIGHT, UH, UH, THE FIRE DEPARTMENT AND THE RESCUE, UH, CALLS, IT'S GOING TO GET WORSE BEFORE IT GETS BETTER.
AND IS THIS BEING THAT'S, THAT'S MY HUNCH.
AND, UH, IS THIS BEING PLANNED FOR, IN THE BUDGET? IF, IF THE CALLS IN THE COMING FISCAL YEAR AND THE NEXT, UH, YOU KNOW, SPIKE 10 OR 20%, UH, I MEAN, HOW MANY CALLS, UH, WERE THERE LAST YEAR? AND WHAT IF, UH, THE, THE ACTIVITY GOES UP 10% NEXT YEAR AND THIS FISCAL YEAR AND 10 FOR 10% MORE THE FOLLOWING YEAR THAT I WOULDN'T BE SURPRISED IF, IF WE, UH, SO PAST HISTORY ISN'T GOING TO HELP US.
WELL, WE'VE SEEN THROUGH THE PANDEMIC, UM, CALLS FOR SERVICE AS MUCH AS DOUBLE, AND IT'S A SYSTEM OF CARE.
WE'VE SEEN OUR GUYS, THEY CALL IT WAITING ON THE WALL, WHICH MEANS THEY'RE HANGING OUT, OUTSIDE THEIR LOCAL HOSPITAL WITH A PATIENT ON BOARD THAT THEY CAN'T GET INTO THE HOSPITAL.
THE SYSTEM DOESN'T HAVE ENOUGH FREE BOARD AND THERE'S NOT ENOUGH MARGIN THERE TO ACCOMMODATE THOSE KINDS OF SURGES IN TERMS OF LONG-TERM EFFECTS.
WE DON'T KNOW YET, BUT, BUT WE KNOW WHERE WE'VE BEEN AND WE'RE TRYING TO BUDGET THIS YEAR BASED ON THAT.
AND WE'LL, UM, BE HONEST ABOUT NEEDED CHANGES AS THEY ARISE.
WELL, I WOULDN'T BE SURPRISED IF THAT THIS AREA OF THE BUDGET IS THERE NOBODY ELSE HERE, JUST US, UH, THIS, UH, I WOULDN'T BE SURPRISED IF THAT TEARS A BIG HOLE IN THE BUDGET THIS YEAR AND NEXT YEAR.
SO THANK YOU FOR BEING HERE TONIGHT.
I'M NOT A PROPHET, BUT, UH, IT SEEMS LIKE THAT'S A REASONABLE, I HEAR YOU DESERVE SOME CONSIDERATION, SORRY.