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[City Manager's Budget Workshop on April 26, 2023.]
EVERYONE.TONIGHT WE'RE GONNA GIVE AN OVERVIEW ABOUT THE PROPOSED BUDGET FOR THE COMING FISCAL YEAR, WHICH IS REALLY THE CITY'S, UM, IMPORTANT POLICY DOCUMENT FOR HOW WE'RE GONNA PROVIDE MUNICIPAL SERVICES AND A SNAPSHOT AS TO WHERE WE ARE AND WHAT OUR PLAN IS GOING FORWARD.
SO I'M GONNA INVITE OUR FINANCE DIRECTOR STEPHANIE SIGMA TO, UM, LEAD US IN THIS CONVERSATION TONIGHT.
WE'LL CERTAINLY SAVE TIME FOR QUESTIONS AND COMMENTS, BUT FIRST, UH, A PRESENTATION FROM STEPHANIE.
SO THE FISCAL YEAR 2324 BUDGET INCLUDES A, UH, CITYWIDE REVENUES FOR ALL FUNDS COMBINED WITH OVER 123 MILLION.
PROPERTY TAX REMAINS THE CITY'S LARGEST REVENUE SOURCE, FOLLOWED BY SALES TAX.
TOTAL EXPENDITURES, EXCLUDING TRANSFERS FOR ALL BUDGETED FUNDS ARE ESTIMATED TO BE OVER 129 MILLION.
MANY FUNDS MAKE UP THE TOTAL BUDGETED AMOUNT WITH THE LARGEST BEING THE GENERAL FUND WITH OVER 66 MILLION OR 52% OF THE CITY'S OVERALL BUDGET.
THE PROPOSED GENERAL FUND BUDGET HAS BEEN STRUCTURALLY BALANCED WITH A NET CHANGE IN FUND BALANCE, ESTIMATED TO BE OVER $176,000.
THIS IS A VERY SMALL YET, UM, CONSERVATIVE NUMBER HERE.
UM, THE BUDGET POLICY REQUIRES THAT THE GENERAL FUND MAINTAIN THE UNDESIGNATED UNAPPROPRIATED RESERVE AMOUNT EQUAL TO AT LEAST 17% OF BUDGETED EXPENDITURES ARE APPROXIMATELY 11.3 MILLION.
AND AS YOU CAN SEE, WE'RE ESTIMATED TO END AT 20 MILLION, WHICH IS WELL WITHIN THAT MARGIN.
THIS CHART DISPLAYS THE FUND BALANCE OVER THE PAST SEVEN YEARS.
FUND BALANCE SPIKED IN TO 25 MILLION IN FISCAL YEAR 20 20, 20 21, AND 24 MILLION IN 2122, BUT IS ESTIMATED TO LEVEL BACK DOWN TO 20 MILLION, ALMOST 25% OF GENERAL FUND EXPENDITURES AND TRANSFERS IN THE CURRENT YEAR.
AND PROPOSED BUDGET OF THIS OVER 3 MILLION IS ASSIGNED, WHICH LEAVES APPROXIMATELY 17 MILLION IN UNASSIGNED FUND BALANCE.
TOTAL GENERAL, GENERAL FUND REVENUES ARE PROJECTED TO BE OVER 81.8 MILLION, A 2.5% INCREASE FROM THE FISCAL YEAR 2223 ADOPTED BUDGET.
THIS IS LARGELY DUE TO AN INCREASE IN PROPERTY TAX REVENUE.
SALES TAX IS ESTIMATED TO DECREASE SLIGHTLY DUE TO THE IMPENDING RECESSION.
LICENSES AND PERMITS ARE ALSO PROJECTED TO DECREASE AS CONSTRUCTION IS NOT EXPECTED TO BE AS GREAT AS IT WAS IN THE LAST TWO FISCAL YEARS.
GENERAL FUND EXPENDITURES FOR THE FISCAL YEAR ARE PROJECTED TO BE OVER 66 MILLION.
THIS IS A 2.6 MILLION INCREASE FROM THE CURRENT FISCAL YEAR'S ORIGINAL BUDGET.
MOST OF THE EXPENDITURES ARE SPENT ON SALARIES AND BENEFITS AND OVERTIME, BUT ACCUMULATES FOR ABOUT 78% OF THE TOTAL GENERAL FUND.
BUDGET EXPENDITURES OVERALL WERE ANALYZED AND PROJECTED TO REFLECT ACTUAL EXPENSES INCURRED BASED ON CURRENT YEARS ESTIMATES AND PRIOR YEARS.
IN GENERAL, THIS WAS A ROLLOVER BUDGET WITH CONSERVATIVE REVENUE ESTIMATES AS WE, UM, FORESEE A RECESSION TO COME IN THE NEXT YEAR OR TWO.
THE PROPOSED BUDGET HAS BEEN BASED ON PRIOR YEAR'S ACTUALS, UM, WITH INCREASES IN LINE WITH BASE, WITH BASE SALARY INCREASES BASED ON OUR MEMORANDUM OF UNDERSTANDINGS WITH OUR COLLECTIVE BARGAINING GROUPS, WHILE ESTIMATED TO BE LESS THAN THE CURRENT YEAR'S ESTIMATE OF 7.4 MILLION.
GENERAL FUND OVERTIME IS PROPOSED TO BE APPROXIMATELY 7.2 MILLION.
MOST OF THIS OVERTIME IS FROM FIRE 50 AT 51% AND POLICE AT 46%.
SERVICE LEVELS ARE PROPOSED TO REMAIN LEVEL ACROSS OPER OPERATIONS.
NO NEW POSITIONS ARE PROPOSED TO BE ADDED FOR THIS FISCAL YEAR.
OVER THE FOLLOWING SERVICES ARE, UM, PROPOSED TO BE MAINTAINED AND THAT'S OUR RECREATIONAL PROGRAMS AND INCLUDING THE SPORTS PLAQUES.
SPECIAL EVENTS, WE'RE GOING TO CONTINUE THE QUARTERLY NEWSLETTER.
WE'RE GOING TO CONTINUE THE INCREASE IN TREE TRIMMING CYCLES AND LANDSCAPE MAINTENANCE.
AND AGAIN, AS I STATED, NO POSITIONS ARE PROPOSED TO BE ADDED.
ONE OF THE CITY'S LONG-TERMS GOALS IS TO SEEK PROFESSIONAL APPRO PROVISIONAL APPROVAL FROM THE CALIFORNIA DEPARTMENT OF PUBLIC HEALTH FOR THE CREATION OF A FISCALLY SUSTAINABLE MUNICIPAL HEALTH DEPARTMENT.
ONCE THE C D P H PROVIDES DIRECTION REGARDING THE REGULATIONS AND SERVICES, THE CITY MAY ASSUME A COMMUNITY HEALTH NEEDS ASSESSMENT, COMMUNITY HEALTH IMPROVEMENT PLAN AND OTHER STUDIES MAY BE BE REQUIRED BY C D P H AND THE PUBLIC HEALTH ACCREDITATION BOARD.
UNTIL DIRECTION IS PROVIDED, THE CITY IS IN A HOLDING PATTERN.
THEREFORE, OTHER THAN THE C I P PROJECT, WHICH INCLUDES THE PROFESSIONAL SERVICES AGREEMENT FOR THESE PLANNING ACTIVITIES, THE FISCAL YEAR 2324 BUDGET DOES NOT INCLUDE REVENUE, EX REVENUE OR EXPENDITURES FOR
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A HEALTH DEPARTMENT.THE PROPOSED CAPITAL IMPROVEMENT PLAN INCLUDES OVER 110 MILLION IN PROJECTS OVER THE NEXT FIVE YEARS.
4.8 MILLION HAVE BEEN COMPLETED RECENTLY WITH 37 MILLION IN PROJECTS UNDERWAY.
24 MILLION ARE PROPOSED NEXT FISCAL YEAR.
IN DECEMBER, THE CITY MADE AVAILABLE A BUDGET SURVEY.
A TOTAL OF 46 PEOPLE RESPONDED, 87% OF WHICH WERE RESIDENTS.
RESPONDENTS WERE ASKED THEIR OPINION ACROSS 10 DIFFERENT CATEGORIES.
THEY RANKED THEIR INFRASTRUCTURE THE MOST, FOLLOWED BY POLICE AND THEN ENHANCING THE CITY IMAGE.
ADDITIONALLY, WHEN ASKED TO, UH, ASSIGN DOLLARS, THEY ASSIGNED THEM TO POLICE, FOLLOWED BY INFRASTRUCTURE AND THEN FIRE AN EMS. IN COMPARISON WITH THE CITY'S PROPOSED BUDGET EXPENDITURES CITYWIDE HAVE BEEN SIMILARLY ALLOCATED TO POLICE THEN PUBLIC FOR SERVICES, WHICH INCLUDES MAINTENANCE AND CITY'S INFRASTRUCTURE, FOLLOWED BY FIRE.
THIS YEAR'S BUDGET PROCESS, AS I MENTIONED, KICKED OFF WITH A BUDGET SURVEY IN DECEMBER.
WE PRESENTED THE LONG-RANGE FINANCIAL FORECAST IN APRIL.
THIS IS THE FIRST OF TWO COMMUNITY BUDGET WORKSHOPS.
UM, AND THEN ANY SUBSEQUENT FOLLOW UP FROM THESE MEETINGS WILL BE SHARED WITH COUNSEL ON MAY 16TH WITH HOPEFUL CONSIDERATION OF ADOPTION ON JUNE 6TH.
UM, THE PROPOSED BUDGET IS AVAILABLE ONLINE ALONG WITH THE, UH, BUDGET IN BRIEF, WHICH IS ON THE TABLE OUTSIDE FOR YOUR, UM, FOR YOU TO TAKE WITH YOU TODAY.
AND THEN I DID WANT TO MENTION THAT THE CITY IS IN THE PROCESS OF UPDATING THEIR FEE SCHEDULE.
SO WE, UH, ASK YOU TO STAY TUNED FOR FUTURE DISSEMINATION OF THE FEE SCHEDULE V STUDY REPORT AND PUBLIC ENGAGEMENT OPPORTUNITIES THAT WILL OCCUR WITH THAT.
UM, BEFORE I OPEN IT UP TO QUESTIONS THOUGH, I DID WANT TO SHOW THAT WHILE THE BUDGET IS AVAILABLE ONLINE, IT IS ALSO, UM, EXTREMELY, UM, USER FRIENDLY.
WE, UH, STRIVE TO MAKE IT VERY EASY FOR SOMEONE TO NAVIGATE THROUGH.
SO WHATEVER PAGE YOU CLICK ON, YOU CAN ALWAYS RETURN TO THE TABLE OF CONTENTS AND YOU CAN SELECT ANOTHER SECTION.
AND AGAIN, NO MATTER WHAT PAGE YOU TAKE, YOU GO TO, YOU'RE ABLE TO CLICK BACK.
SO, UM, WE'RE HOPING THAT YOU'LL CHECK THAT OUT ONLINE.
UM, I DO, UH, WANNA ALSO GIVE A BIG THANKS TO MY TEAM, WHICH I DO HAVE HERE IN THE FRONT ROW HERE AND NEXT TO ME.
UM, THIS BUDGET IS DEFINITELY A TEAM PRODUCTION AND UM, I APPRECIATE THEIR WORK ON THIS.
SO WITH THAT, UH, WE WILL OPEN IT UP TO QUESTIONS IN DISCUSSION.
IT WOULD BE HELPFUL IF YOU COULD SPEAK IN THIS MICROPHONE.
UM, QUICK QUESTION, THE BUDGET SURVEY, MARSHA, JUST FOR THE MEETING PURPOSES, COULD YOU GIVE US YOUR NAME? SORRY, MARSHA SOLARO.
UH, THE BUDGET SURVEY, HOW WAS THAT, UM, PUT OUT BECAUSE I DON'T RECALL EVER SEEING IT.
AND YOU SAID THERE WAS 46 RESPONDENTS OUT OF LIKE HOW MANY IS THAT CITYWIDE? UH, YES.
SO, UH, IN DECEMBER IT WENT OUT WITH A QUARTERLY NEWSLETTER.
SO THERE WAS, THERE WAS AN ADVERTISEMENT IN THE QUARTERLY NEWSLETTER, IT WAS ONLINE.
AND WE ALSO PRINTED OUT QR CODES THAT WERE DISSEMINATED AT MOST OF THE PUBLIC MEETINGS AS WELL IN ADDITION TO ANNOUNCING IT AT EVERY SINGLE, UH, CITY COUNCIL MEETING.
UNFORTUNATELY, WE DIDN'T GET AS MUCH RESPONDENTS THAN FROM, THAN WE DID FROM THE YEAR BEFORE, BUT I DON'T KNOW IF IT'S BECAUSE THEY FELT THEY JUST DID A BUDGET SURVEY.
SO, UM, CUZ WE REALLY ACTUALLY DID MORE OUTREACH AND HAD IT OUT FOR LONGER THIS YEAR THAN WE DID THE PRIOR YEAR.
SO I DON'T KNOW IF IT WAS JUST, THEY'RE THINKING, WELL I JUST DID THAT LAST MARCH, I DON'T NEED TO DO IT AGAIN.
CUZ TECHNICALLY WE HAD TWO IN ONE YEAR WITH HOW IT WAS DONE, UH, WITH A LONGER SPAN.
SO IT IS SOMETHING THAT WE'LL TRY TO CONTINUALLY INCREASE OPPORTUNITIES FOR.
UM, BUT WE DID STRIVE BY, UM, HAVING PRINTOUTS AT A LOT OF THE RECREATIONAL, UM, FESTIVALS.
UH, THE PUBLIC SERVICE DIRECTOR ACTUALLY REQUESTED IT AND HAD HANDOUTS SO PEOPLE COULD SCAN THE QR CODES AT THOSE EVENTS AS WELL.
SO WE DID DO OUR BEST TO GET IT OUT AS MANY, UM, AVENUES AS POSSIBLE.
ANY OTHER QUESTIONS, COMMENTS?
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THIS IS REALLY, YOU WOULD WELCOME COMMENTS, QUESTIONS, THOUGHTS, UH, ANY KIND OF QUESTION.BIG QUESTIONS, LITTLE QUESTIONS.
YEAH,
UM, CAN YOU TALK A LITTLE BIT ABOUT IT, JUST LIKE OUR LIQUIDITY, UM, IT'S NOT SUPER LIKE BUDGET RELATED, BUT IT KIND OF IS.
A LOT OF OUR RESIDENTS KIND OF ALWAYS HAVE CONCERNS ABOUT WHAT DOES FUND BALANCE MEAN? HOW DOES THAT COMPARE TO LIKE WHAT'S THE MONEY IN THE BANK SITUATION? SO JUST TO KIND OF HAVE A BETTER UNDERSTANDING OF THOSE TERMS. YES.
SO JUST FOR A VISUAL PERSPECTIVE, UM, WE GENERALLY HAVE, I WOULD SAY THE CITY IS VERY, ALL OF OUR ASSETS ARE VERY LIQUID.
I COULD PULL ANY OUT AT ANY TIME.
WE ARE CURRENTLY ONLY INVESTING IN, UM, THE TWO, UH, COUNTY POOLS AND COUNTY AND STATE POOLS.
SO WE, WITH 24 LESS THAN 24 HOUR NOTICE, WE CAN PULL ALL THE MONEY OUT THAT WE NEEDED TO, THAT'S INVESTED IN THEM.
UM, I WILL SAY WITH THE GENERAL FUND BALANCE, WE HAVE MORE THAN THAT LIQUIDLY AVAILABLE IN OUR CURRENT, UM, BANK ACCOUNTS.
UM, BUT WITH OUR FUND BALANCE THAT WE IS, THAT WE OPERATE WITH, WE GENERALLY, UM, DON'T FLUCTUATE MORE THAN 10 MILLION IN A GIVEN TIME PERIOD AT THE BEGINNING OF A FISCAL YEAR.
WE OBVIOUSLY HAVE MORE CASH, UM, AFTER PROPERTY TAX.
THE FIRST PROPERTY TAX BILLS COMES IN IN JANUARY.
SO, UM, THAT'S WHEN WE ARE HIGHER WITH OUR CASH LEVELS.
AND THEN AS WE GO THROUGH THE REST OF THE FISCAL YEAR, THOSE DWINDLE DOWN AND THEN IT SPIKES AGAIN.
UM, BUT IN RELATION TO OUR FUND BALANCE, THAT USUALLY REMAINS ABOUT THE SAME.
WE ANALYZE IT AFTER EVERY, UH, FINANCIAL REPORT IS ISSUED TO MOVE ANY UNASSIGNED FUND BALANCE TO OTHER FUNDS.
THIS USUALLY MEANS IT STAYS IN OUR BANK ACCOUNTS, UM, AND IS INVESTED IN CAPITAL INFRASTRUCTURE AND CAPITAL PROJECTS THAT TYPICALLY TAKE LONGER TO, UM, ACTUALLY CONSTRUCT AND EXPEND FUNDS FOR.
SO WE SIT ON A LOT OF CASH GENERALLY.
I HOPE THAT ANSWERED YOUR QUESTION.
AND THEN I'M GIVING HIM TIME TO LOOK
WHAT WAS THE IMPACT TO THE BUDGET NOW THAT THE ONE TIME MONIES ARE GONE ARE PRETTY MUCH GONE? OR WAS THERE A HUGE IMPACT TO OUR OPERATING BUDGET? NOT SO MUCH BECAUSE THE ONE TIME MONEY ALL WENT INTO SPECIAL REVENUE FUNDS AND THEN BASICALLY INTO A SEGREGATED FUND, UH, FOR THOSE SPECIFIC PURPOSES.
AND IT DIDN'T CHANGE HOW WE OPERATE ON A DAILY BASIS.
UM, WITH THIS BUDGET, IT IS A ROLLOVER BUDGET, SO WE'RE NOT, UH, PROPOSING ANYTHING OUT OF THE ORDINARY AND EXTRAORDINARY BECAUSE WE DO ANTICIPATE A RECESSION COMING IN.
SO WITH THAT IN MIND, WE SCALED BACK ON ANY ADDITIONS THAT WE WOULD'VE NORMALLY PROPOSED.
LAST YEAR'S BUDGET INCLUDED A LOT MORE BECAUSE THE OUTLOOK FOR THE YEAR, THE ECONOMY IN GENERAL WAS BETTER.
I WONDER IF YOU COULD SPEAK ON, YOU MENTIONED THE LOWERING OF A SALES TAX DUE TO, UH, RECESSION OR PERCEIVED RECESSION.
SO WE, UM, UTILIZE HGL, WHICH IS A SALES TAX CONSULTANT AND THEY, THEY SERVE NUMEROUS COMMUNITIES IN CALIFORNIA.
THEY HAVE A BIG TEAM THAT ANALYZES THE ECONOMIC DRIVERS THAT REALLY, UM, IMPACT OUR SALES TAX.
AND SO WE RELY ON THEM TO, FOR PROJECTIONS AND WE UTILIZE THOSE PROJECTIONS.
AND BECAUSE OF THE IMPENDING RECESSION, THEY ACTUALLY ESTIMATE THAT OUR SALES TAX WILL GO DOWN SLIGHTLY BASICALLY BY HALF A PERCENT.
AND SO WE FACTORED THAT INTO OUR SALES TAX REVENUES PROJECTIONS, WHICH LEAVE IT BASICALLY FLAT GOING DOWN JUST SLIGHTLY.
AND WHAT ARE THE SALES TAX, UM, PROJECTIONS WITH THAT, WITH THAT PERCENT DOWN? IT'S ABOUT 23 MILLION IS WHAT OUR SALES TAXES BASICALLY, UH, COME TO.
IN THE GENERAL FUND, THAT WOULD BE A TAX AT A 9% OR NINE AND A HALF.
I'M NOT SURE WHERE WE'RE AT, BUT WE ARE NOT AT THE FULL PERCENTAGE.
IT'S 8.25 OR I DON'T RECALL THE EXACT AMOUNT, BUT I CAN PULL THAT UP FOR YOU.
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WE'RE AT 9.5, 9.25, BUT IT'S NINE.UH, WHEN WILL WE ANTICIPATE, UH, TO INCLUDE PROJECTIONS FOR THE PROPERTY TAX? FOR THE NEW DEVELOPMENTS THAT WE HAVE GOING ON RIGHT NOW, THE OLD VINCENT CENTER AND THE OLD PIONEER SCHOOL? OH, WE WILL, ONCE WE GET THE UPDATED ROLES FROM AN APPRAISALS FROM THE COUNTY, THIS ACCESSOR WILL INCLUDE THOSE IN.
WE TYPICALLY DON'T GET THE ACTUALS BECAUSE THAT'S, IT'S SUCH A, UM, UNTIL THEY'VE ACTUALLY GONE THROUGH THEIR WHOLE PROCESS, UH, WITH THOSE SALES AND EVERYTHING CLOSES OUT, WE USUALLY DON'T SEE THAT UNTIL THE FIRST, UH, ALLOCATION THAT WE GET FOR AS FAR AS LIKE, HERE'S WHAT YOU ARE GOING TO RECEIVE FROM THOSE PROPERTIES.
UM, AND OF COURSE WHEN THE SALE, THE TRANSACTION HAPPENS, THAT'S ALWAYS LIKE A TRUE UP YEAR TOO.
AND IF I COULD CONTRIBUTE TO THAT TO SAY THERE'S A LAG AND IT'S SIGNIFICANT UNTIL THESE DEVELOPMENTS WHICH ARE FOR SALE UNITS, YOU KNOW, GET WHITE PAPER FROM THIS STATE CLOSE ESCROW, WHICH ESTABLISHES A NEW ASSESSED VALUATION, IT TAKES A YEAR.
SO WE ARE A LONG WAY OUT FROM SEEING THE GENERAL FUND REVENUE GAIN FROM THAT.
IT, IT VARIES FROM TAX RATE AREA TO TAX RATE AREA, BUT OUR SHARE IS FAR LESS THAN THE 1%.
WE DON'T, WE DON'T GET THE ENTIRE TAX PORTION, THE PROPERTY TAX.
WE ONLY GET A A SMALLER PERCENTAGE OF THAT.
UM, COUNCILMAN CANTOS, JD DID YOU WANNA MAKE A QUESTION OR A COMMENT? YOU'D BE WELCOME.
JEFFERSON RU, LONGTIME RESIDENT.
I SAW YOU MENTIONED OVERTIME FOR THE FIRE DEPARTMENT.
WAS THAT LAST YEAR'S OVERTIME OR IS THAT THIS YEAR'S PROJECTED OVERTIME USE? SO THE 7.3 IS WHAT WE ARE TRENDING NOT TO HIT THIS FISCAL YEAR.
AND THEN 7.1 IS PROPOSED FOR NEXT YEAR.
UM, PARTICULARLY IN FIRE THEY'VE HAD A LOT OUT ON INJURIES AND THEY'VE ALSO HAD A LOT OF VACANCIES.
SO WHEN THAT OCCURS, THEY'RE OBVIOUSLY GOING TO BE SPENDING MORE OVER ON OVERTIME FOR THE EXISTING, UM, EMPLOYEES.
AND SO WITH HOPEFULLY GETTING A FULL STAFF AS THEY ARE JUST ABOUT TO HIRE SEVEN NEW FIREFIGHTERS, I BELIEVE THAT THEY'RE PUTTING THROUGH THE ACADEMY, UM, WE'RE HOPEFUL THAT THEY'LL MOVE TO MORE OF A FULL STATUS STAFFING SO THAT THEIR OVERTIME WILL THEN BE DECREASED.
I'M KIND OF SLOW, SO LET ME MM-HMM.
UM, AND THEN, UM, WHICH IS WHAT WE BUDGETED FOR THIS FISCAL YEAR AND THEY ARE SURPASSING THAT AMOUNT AT 7.3.
CUZ THE LAST PRESENTATION I ATTENDED, THE CHIEF SAID THAT OBVIOUSLY OVERTIME'S NEVER GONNA JUST GO AWAY MM-HMM.
HOWEVER, THERE WAS ALSO A COMMITMENT THAT WITH THE ADDITIONAL STAFFING WE WOULD SEE A SIGNIFICANT REDUCTION IN THAT, UH, THAT AREA.
AND YOU KINDA ANSWERED MY QUESTION BY SAYING THAT THE, THERE'S PENDING STAFFING COMING ON BOARD.
SO WE, WE DON'T HAVE ANY NEW STAFF IN THE FIRE DEPARTMENT FROM LAST YEAR THAT ARE ALREADY GONE THROUGH THE ACADEMY AND ARE BOOTS ON THE GROUND, SO TO SPEAK.
THEY DID HIRE SOME AT THE BEGINNING OF LAST FISCAL YEAR, BUT THEN I GUESS, UH, LAST, LAST, IF I MAY, LAST AUGUST, WE, WE'VE SWORN IN NINE NEW ONES AT THE CEREMONY AT FIRE STATION TWO IN, IN AUGUST.
BUT WE HAD SOME ATTRITION, UH, EXPECTED ANTICIPATED RETIREMENT AND WE HAD SOME TRANSFERS OUT.
PEOPLE WERE RECRUITED BY OR LEFT OUR SERVICE TO JOIN OTHER DEPARTMENTS.
THE, THE MAJORITY OF THIS, UM, EXPENDITURE IS DIRECTLY RELATED TO OUR NEED TO HAVE MINIMUM MANNING, MINIMUM MINIMUM STAFFING AT EACH ONE OF OUR FIREHOUSES.
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AN ENGINE AND WE CAN'T GO BELOW THAT ONCE IF WE'VE GOT 12 OUT AT ONCE, UM, INJURED ON DUTY OUT, YOU KNOW, I O D UM, OVERTIME IS OUR ONLY PLACE TO GO AT THE MOMENT.SO THAT WAS A MAJOR CONTRIBUTING FACTOR.
SO I I, AND I GUESS MY TAKEAWAY IS THAT STAFFING REALLY ISN'T THE SOLUTION TO THE OVERTIME ISSUE BECAUSE IT WAS KIND OF PROPOSED OR THE JUSTIFICATION WAS WE, WE GET ADDITIONAL STAFFING IN THE FIRE DEPARTMENT, WE'LL SEE A REDUCTION IN THE OVERTIME.
AND FROM WHAT I'M HEARING, IT'S BASED AND FROM THE PREVIOUS PRESENTATION THAT THE CHIEF GAVE US, THERE ARE SO MANY OTHER FACTORS THAT THERE'S NO, THERE DOESN'T SEEM TO BE A SOLUTION TO THE, UH, ROLLOVER OF THE OVERTIME.
WELL, I MEAN, THAT'S A FAIR POINT, BUT I'D LIKE TO SAY I, I BELIEVE IN OUR PUBLIC SAFETY DEPARTMENTS, WE ARE UNDERSTAFFED.
I THINK OUR RESPONSE TIMES IN THE FIRE DEPARTMENT, UM, DON'T MEET NATIONAL STANDARD.
AND I THINK, UM, RESPONSE TIMES IN OUR POLICE DEPARTMENT ARE UNACCEPTABLY LONG.
UM, AND, AND PUBLIC PERCEPTION OF SAFETY AND, AND PUBLIC SAFETY IS, IS AFFECTED IN BOTH OF OUR FRONTLINE DEPARTMENTS.
WE'RE WE'RE NOT OVERHIRED, WE'RE AND WE'RE NOT, UM, KEEPING UP WITH IT, IN MY OPINION.
LAST YEAR IN OUR FIRE DEPARTMENT, AND I THINK YOU WERE HERE FOR THE FIRE DEPARTMENT EVENING, WE RAN QUITE, NEARLY 10,000 CALLS.
SO CALLS FOR SERVICE IS UP, BUT STAFFING ISN'T.
SO WHAT IS THE IDEAL NUMBER FOR THE FIRE DEPARTMENT? SINCE YOU'RE SAYING WE'RE, WE'RE UNDERSTAFFED, WHAT IS IN YOUR ESTIMATION, THE IDEAL NUMBER OF FIREFIGHTERS THAT WE NEED? IF WE'RE RUNNING 70 NOW, I WOULD THINK WE COULD EASILY STAFF UP TO 75.
WE WERE DOWN TO 66 OR BELOW AND, AND, AND A POINT TO BE MADE ABOUT OUR STAFFING IN THE FIRE DEPARTMENT.
WE ARE, WE'RE NOT ONLY UNDERSTAFFED IN TERMS OF FIELD SERVICES, WE'RE UNDERSTAFFED IN TERMS OF ADMINISTRATION SERVICES, FIRE PREVENTION BUREAU, UH, FIRE INSPECTIONS, UM, ADMIN SUPPORT.
WE COULD WELL JUSTIFY ADDITIONAL FULL-TIME POSITIONS IN EACH OF THOSE OPERATIONAL AREAS RIGHT HERE AT THE CITY HALL ADMIN HEADQUARTERS.
BUT WE'VE CONTINUED TO MAKE AS A PRIORITY THE FIELD SERVICES.
IF I WERE TO ADD, IF, IF ADDITIONAL MONEY CAME OUT FROM THE SKY OR SOMEWHERE, I, I WOULD THINK I WOULD CONTINUE TO ADD IN FIELD SERVICES FIRST.
THE, THE BEST WAY TO ANSWER YOUR QUESTION ABOUT, YOU KNOW, WHAT STAFFING IS APPROPRIATE, I THINK WOULD BE FOR THIS CITY TO DO, UH, STANDARDS OF COVERAGE.
BASICALLY A PROFESSIONAL ANALYSIS OF WHAT'S AT RISK IN THE COMMUNITY.
FIRE PREVENTION AND CONTROL MASTER PLANNING, AND THEN AN HONEST COMMUNITY CONVERSATION ABOUT WHAT ARE ACCEPTABLE LEVELS OF RISK.
WHEN, WHEN YOU CALL 9 1 1, EVERYBODY KNOWS THE KITCHEN FIRE DOUBLES IN SIZE EVERY FIVE MINUTES.
AND WHEN YOU'RE WAITING FOR A RESPONSE AS A, AS A RESIDENT, IT'S, IT CAN BE VERY, UM, VERY FRIGHTENING.
AND, AND, AND I THINK AS A COMMUNITY, WE, WE, WE, WE NEED TO DO BETTER.
I DON'T, I DON'T HAVE SOLUTIONS FOR YOU TONIGHT.
WITH RESPECT TO YOUR QUESTION ABOUT THE FIRE DEPARTMENT.
I THINK A, A STANDARDS OF COVERAGE ANALYSIS, WHICH WOULD COST A HUNDRED THOUSAND OR A BIT MORE THAN THAT, WOULD BE WELL JUSTIFIED.
NOW, WOULD A STUDY, UH, SUCH A STUDY TAKE INTO CONSIDERATION THE TYPE OF CALLS THAT THE FIRE DEPARTMENT RUNS? IT WOULD, I MEAN, TRADI WE'VE HEARD FOR YEAR AFTER YEAR THAT THEY'RE PROBABLY AT THE HIGHER END FOR MEDICAL CALLS THAN THERE ARE ACTUAL FIRES.
SO IS CHANGING THE MODEL A POSSIBLE, UM, SOLUTION TO OVERTIME, IN OTHER WORDS, CONTRACTING WITH AN AMBULANCE SERVICE, AMR, WHAT WHATEVER OTHER, UH, SERVICES ARE OUT THERE TO RUN THOSE SORT OF CALLS.
I KNOW THE CITY LOSES MONEY, UH, REIMBURSEMENT FROM THE, THE STATE AND COUNTY, BUT IT WOULD FREE UP THE NEED TO FILL B BACKFILL SOME OF THESE ABSENTISM AND, AND WHAT HAVE YOU.
POSSIBLY I THINK A, AN S O C WOULD, WOULD ADDRESS SOME OF THAT.
I CAN TELL YOU A, A LOT OF THE PRIVATE AMBULANCE PROVIDERS RIGHT NOW ARE HAVING A HARDER TIME THAN US WITH MANPOWER.
SO SOME OF THE LONGSTANDING AMBULANCE PROVIDERS, THE CERTIFIED COMPANIES THAT OPERATE IN THIS COUNTY CAN'T GET PARAMEDICS
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EITHER.AND SO THERE'S, THERE'S QUITE A COMPETITION FOR ALL OF THAT AT THE MOMENT.
THE, THE PENDULUM HAS COMPLETELY SWUNG WAS A TIME IN LA COUNTY, YOU KNOW, A DECADE AGO YOU'D FLY A FIREFIGHTER JOB AND HAVE A THOUSAND PEOPLE APPLY FOR ONE JOB.
WELL, THAT HAS COMPLETELY FLIPPED NOW AND, AND IT'S NOT, UM, AS EASY TO HIRE, UM, FIREFIGHTERS OR, OR POLICE OFFICERS AS IT AS IT WAS JUST A FEW YEARS AGO.
THESE ARE, THESE ARE PRECIOUS COMMODITIES AND WE NEED TO NOT ONLY ATTRACT THEM, BUT WE NEED TO RETAIN THEM.
I, I THINK, UM, ANOTHER POSSIBILITY THAT COULD BE EXPLORED IN AN S O C WOULD BE THE IDEA OF REGIONALIZING PUBLIC SAFETY SERVICES.
I, I WOULD, I WOULD BE EXTREMELY RELUCTANT TO SUGGEST THAT, THAT THE CITY SHOULD CONTRACT COUNTY SHERIFFS.
I THINK THAT'D BE A VERY BAD MOVE.
I'VE SPENT HALF MY CAREER SERVING LA COUNTY CONTRACT CITIES AND WOULD NOT WANT TO GO THERE.
BUT THERE MIGHT BE SOME REGIONALIZATION OPPORTUNITIES WITH RESPECT TO FIRE AND EMS AND, AND I THINK IT'S, IT'S PROBABLY WORTHY OF A CONVERSATION.
I DUNNO IF YOU'LL INDULGE ME, UM, IN THIS BUDGET, ARE THERE, IS THERE ANY IDEA OF TRYING TO INCREASE THE POLICE DEPARTMENT IN ANY WAY? CUZ I REMEMBER LAST BUDGET WE KIND OF HAD THAT LAST MINUTE INCREASE IN THREE OTHER AREAS.
WILL THIS ONE, IS THIS ONE TAKEN INTO CONSIDERATION THE, UH, NEED OF THE POLICE DEPARTMENT? THE INCREASE OF, UH, STAFFING? WELL, LET ME, YOU ASK A VERY GOOD QUESTION.
I'M GONNA ASK STEPHANIE TO OFFER, UH, ANSWER IT WITH RESPECT TO WHAT IS OUR OPERATING MARGIN IN THE GENERAL FUND IN THE COMING YEAR.
DO WE HAVE THE ABILITY TO AFFORD IT? I I CAN CLEARLY SEE A NEED FOR MORE PUBLIC SAFETY POLICE TOO.
CERTAINLY WE, WE'VE MADE SOME OPERATIONAL CHANGES THERE.
UH, CHIEF BELL DID A REALLY GOOD JOB OF BRINGING BACK THE OVERLAP SHIFT, WHICH I THINK HAS AN, A SIGNIFICANT EFFECT, YOU KNOW, AS THE, THE SHIFT CHANGE IN THE CALL VOLUME INCREASES DURING THAT, THAT PEAK PERIOD.
BUT I THINK WE'RE BY, BY ANY NATIONAL STANDARD, UNDERSTAFFED IN POLICE AS WELL.
AND, AND I'D LIKE TO SEE MORE POLICE OFFICERS TOMORROW, BUT, BUT CAN THE CITY AFFORD IT? I'M GONNA ASK STEPHANIE TO SPEAK TO THIS QUESTION OF WHAT IS OUR OPERATING MARGIN IN THE GENERAL FUND.
I THINK YOU'LL SEE IT'S PRETTY THIN.
WELL, CAN CAN SHE ANSWER FIRST? SURE.
AND THEN WE'LL, WE'LL UP, WE'LL STAY HERE AS LONG AS YOU LIKE, BUT I JUST WANTED HER TO ADDRESS THAT PIECE.
TOUCHING ON THE OPERATIONAL MARGIN, AS I MENTIONED, UH, THE CHANGE NET CHANGE IN FUND BALANCE IS ONLY ESTIMATED TO BE AROUND $176,000.
ONE POLICE OFFICER COSTS MORE THAN THAT ANNUALLY.
SO WE DID NOT HAVE CAPACITY TO ADD ANY POLICE OFFICERS TO THIS BUDGET.
UM, IF THAT ANSWERS YOUR QUESTION.
YEAH, NO, I CAN SEE THE PROBLEM THERE.
UM, BUT MY, IN MY WAY OF THINKING, WE ADDED ADDITIONAL DEPARTMENTS TO THE CITY OPERATION CODE ENFORCEMENT.
THESE, THESE ARE WORKING IN CONJUNCTION WITH THE POLICE DEPARTMENT AND I'M WONDERING IF THAT EFFORT, THOSE MONEY WOULDN'T HAVE BEEN BETTER UTILIZE IN INCREASING THE POLICE DEPARTMENT.
CUZ CODE ENFORCEMENT IS VERY SPECIFIC, VERY, YOU KNOW, SPECIFICALLY DEFINED AS THROUGH THEIR, THEIR, UH, SPAN OF RESPONSIBILITY WHERE THE POLICE DEPARTMENT COVERS A FAR MORE NEEDED SERVICE FOR THE RESIDENTS.
NOW FROM QUESTION, UH, WELL, JUST SPEAKING FROM A FINANCIAL STANDPOINT, THOSE POSITIONS ALSO ARE FAR LESS THAN ONE POLICE OFFICER.
SO LIKE ONE, ONE FULL-TIME CODE ENFORCEMENT OFFICER COMPARED TO ONE POLICE OFFICER IS A SIGNIFICANT COST DIFFERENTIAL.
OH, YOU, SORRY, YOU HAD A FOLLOW UP.
WHEN YOU SAY NEW MONEY, THE, ARE YOU TALKING ABOUT FROM NEW PROPERTIES COMING IN? THINGS LIKE THAT PROPERTY MM-HMM.
[00:30:05]
I'M, I'M HAPPY TO TAKE A RUN AT IT IF STEPHANIE'S NOT COMFORTABLE.WE'VE GOT ABOUT 400 UNITS UNDER CONSTRUCTION RIGHT NOW.
IF YOU MULTIPLY JUST LIKE THIS, LOOKING AT IT FROM A DISTANCE, IF EVERY ONE OF THOSE UNITS WERE TO SELL FOR $600,000, YOU'D GET A CERTAIN ASSESSED VALUATION.
AND IT VARIES FROM TAX RATE AREA TO TAX RATE AREA, BUT IF WE, OF THAT 1% PROPERTY TAX, WE GOT 17% FOR ALL 400 UNITS, THAT'D BE $408,000.
IT WOULDN'T BE ENOUGH TO STAFF UP AS I THINK YOU'RE SUGGESTING ALL STATE, I I'M NOT SURE THERE'S A STRAIGHT LINE CORRELATION BETWEEN THESE NEW RESIDENTS AND THE NEED FOR, IF IT'S $408,000, YOU KNOW, TWO ADDITIONAL POLICE OFFICERS.
BUT, UM, OR IF EVEN THAT WOULD BE THE MOST EFFECTIVE WAY TO, TO APPROACH IT.
I THINK, UM, THE DEMANDS FROM THE STATE FOR US TO BUILD MORE HOUSING ARE CERTAINLY GONNA HAVE CONSEQUENCE.
THEY'RE WANTING US TO BUILD, YOU KNOW, NORTH OF 5,300 UNITS IN THE NEXT, UH, PLANNING PERIOD.
UM, IT'S, IT'S GONNA BE A LITTLE OVERWHELMING IN, IN EVERY RESPECT TO PROVIDE CITY SERVICES FOR THAT MANY ADDITIONAL WEST COVINA RESIDENTS.
COLLEEN ROSATI, CITY TREASURER.
I HAVE A QUESTION IN REFERENCE TO CAPITAL IMPROVEMENT PROGRAM.
GOOD NEWS THAT WE WILL BE REPLACING FIRE STATION ONE AND I NOTICED THE COST OF 13.5 MILLION.
WHERE WILL THOSE FUNDS BE DRAWN FROM? SO RIGHT NOW THAT IS PROPOSED TO BE A PUBLIC PARTNER, PUBLIC-PRIVATE PARTNERSHIP OF SOME FORM.
UM, THE PROPERTY IN WHICH THE FIRE STATION LANDS ON IS CURRENTLY BEING NEGOTIATED OR OUT.
A LOT OF THINGS HAVE HAVE TO HAPPEN WITH THE PROPERTY BEFORE WE CAN PROCEED WITH THAT.
BUT WE'RE ANTICIPATING SOME SORT OF OUTSIDE CONTRIBUTIONS FOR THE PROPERTY THAT WOULD GO TOWARDS THE FIRE STATION.
SO WE'RE BASICALLY, YOU'RE SELLING THAT OFF CORRECT.
TO AN OUTSIDE ENTITY? CORRECT.
WHICH IN TURN WILL PARTNER WITH US AND BUILD A FIRE STATION.
WHAT ABOUT THE CHAMBER BUILDING? THE CHAMBER BUILDING IS A PART OF THAT PUBLIC WORK YARD PROPERTY AND, AND WILL PROBABLY BE PART OF A SALE IF THAT GOES FORWARD.
I THINK BOTH THE CHAMBER BUILDING AND OLD FIRE STATION ONE ARE PRIME CANDIDATES FOR DEMOLITION.
SO THAT'S SOMETHING THAT'S GONNA BE PROBABLY THE NEXT THING YOU'LL SEE IN TERMS OF WHAT'S HAPPENING IN THE FIELD.
GOING BACK TO 2007 WHEN THERE WAS A SEISMIC STUDY STATING THAT THAT FIRE STATION ONE SHOULD HAVE BEEN CONDEMNED AND IT WAS UNSAFE FOR OUR FIREFIGHTERS, WHICH I TRIED TO BRING FORWARD TO THE PUBLIC AND THEY TOOK IT AND SAID I WAS TRYING TO CLOSE FIRE STATIONS AND MAKE THE CITY UNSAFE, WHICH WASN'T THE CASE.
TRYING TO LET PEOPLE KNOW THAT THAT BUILDING WASN'T SAFE.
I'M JUST WONDERING WHERE THE FUNDS ARE COMING FROM.
AND THEN I NOTICED THAT UM, AT THE CITY COUNCIL MEETING ON TUESDAY, THERE WAS AN INCREASE FOR THE MONTHLY RETAINER FOR THE ATTORNEYS AND I BELIEVE IT'S 40,000 NOW.
DID YOU INCREASE THAT BECAUSE YOU'RE ANTICIPATING MORE LITIGATION, MORE SUITS AND DO WE HAVE THE MONEY TO INCREASE THAT? THE MONTHLY RETAINER DOES NOT INCLUDE THE COST FOR LITIGATION SERVICES.
SO IT INCLUDES MAINLY LIKE THE REVIEW OF OUR STAFF REPORTS.
IF I HA IF I HAVE A RANDOM QUESTION, IF WE HAVE, UM, WORKING ON OPERATIONAL ITEMS IN WHICH WE CONSULT WITH THE ATTORNEY, THOSE ARE ALL ITEMS THAT ARE INCLUDED IN THAT RETAINER LITIGATION IS OUTSIDE OF IT.
UM, AND WHAT WAS THE SECOND PART OF YOUR QUESTION? I, I BELIEVE DAVE MIGHT HAVE, UM, ALSO I ALSO WOULD CONTRIBUTE TO THAT TO SAY COLLEEN, UM, I THINK IT WAS MORE OF A REFLECTION OF WHAT ARE THE COSTS OF LEGAL SERVICES AND THE HOURLY RATES THAT WE WERE PAYING WEREN'T, WERE TOO LOW.
THE THE RULE OF THUMB THAT I WOULD OFFER TO YOU
[00:35:01]
IS THAT A CITY SHOULD SPEND BETWEEN ONE AND 2% OF ITS GENERAL FUND ON ITS LEGAL AND WE'RE KEENLY AWARE OF, OF THE COST OF RISK MANAGEMENT.AND I THINK WE'RE MAKING REALLY GOOD GAIN THERE.
UM, ONE OF THE, THE MAJOR WAYS WE'VE BEEN ABLE TO MAKE PROGRESS IS THROUGH OUR MEMBERSHIP IN THE CALIFORNIA JOINT POWERS INSURANCE AUTHORITY.
SO WITH RESPECT TO LITIGATION MANAGEMENT, A CONDITION OF OUR MEMBERSHIP IS THAT THEY'RE HANDLING THOSE CLAIMS AND THOSE LAWSUITS FOR US FIRST DOLLAR ON.
AND SO I THINK, UM, THE, THE NUMBER OF OUTSTANDING CASES, AND WE REVIEW THOSE CASES EVERY SINGLE MONTH WE GO THROUGH THEM.
WE JUST WENT THROUGH THEM THIS MORNING AGAIN, IS IS DIMINISHING, DIMINISHING, DIMINISHING, UM, PRETTY CLEAR STRAIGHT LINE DOWN.
SO I THINK WE'RE DOING MUCH BETTER IN THAT AREA.
I DIDN'T HEAR WHAT THE INCREASE WAS.
WHAT WERE THEY AT BEFORE IT WENT UP TO 40, 30,000 A MONTH? THEY WERE AT 40.
NO, THEY WERE AT 30,000 AND IT WENT UP TO 40,000.
THEIR CONTRACT ACTUALLY INCLUDED, UH, ANNUAL INCREASES THAT WEREN'T ACTUALLY IMPLEMENTED.
UM, SO I FORGET HOW FAR BACK IT WAS THAT THEY HAD RECEIVED THEIR LAST INCREASE.
UM, BUT THEY WERE ALSO, UM, IN RELATION TO THE HOURLY RATE WE WERE PAYING FOR OUR CITY ATTORNEYS IN REGARDS TO OTHER ATTORNEYS THAT WERE PAYING FOR LITIGATION AND OTHER SERVICES WERE EXTREMELY LOWER.
UM, SO THAT WAS ONE CONSIDERATION THAT WAS ALWAYS, UH, PUT IN FROM STAFF AS WELL, THAT EVEN THOUGH THEY DID RECEIVE AN INCREASE, THEIR HOURLY RATE IS LOWER THAN MOST OF THE OTHER ATTORNEYS FOR FIRMS THAT WE UTILIZE.
I HAVE TO THINK OF MY OTHER THOUGHT.
UM, CAN WE, YOU WANT ME TO GET A LITTLE CLOSER TO THIS MIC? THAT'S PERFECT.
UM, WHEN WE HAVE INCIDENTS LIKE THE POTHOLES THAT NEEDED TO BE FILLED, UH, TREES FALLING THOSE FUNDS, ARE THEY COMING OUT SPECIAL FUNDINGS OR ARE THEY FROM THE GENERAL FUND, UH, CB CBDG OR WHATEVER THE, THOSE SPECIAL FUNDS ARE? IS THAT WHERE THE MONEY'S COMING FROM? BECAUSE I KNOW THAT'S KINDA AN UNEXPECTED, LIKE THE POTHOLES THAT WE'VE BEEN EXPERIENCING.
SO WHERE'S THAT FUNDING COMING FROM IF I MAY? SO FOR SOMETHING LIKE A POTHOLE THAT WOULD COME OUT OF OUR GAS TAX FUNDS OR OUR OTHER STREET RELATED SPECIAL REVENUE FUNDS, WE DO HAVE SEVERAL OF THOSE AVAILABLE TO US TO USE.
UM, SO FOR SOMETHING SPECIFIC LIKE THAT, IT WOULD COME FROM A SPECIAL REVENUE SOURCE IN WHICH WE HAVE SET ASIDE FUNDS FOR ALSO OUR, OUR MONEY THAT GOES TOWARD PAVEMENT MANAGEMENT IS FAR MORE THAN JUST GAS TAX.
WE'VE GOT MEASURE R, MEASURE M WE'VE GOT A LOT OF OTHER SOURCES OF MONEY, UM, TO INCLUDE SOME VERY GOOD NEWS FROM THE CONGRESSWOMAN ABOUT FEDERAL MONEY COMING OUR WAY FOR, UM, BETTERMENTS ON AZUSA.
UM, BUT IT, IT'S ALWAYS A SB ONE.
THERE'S ALWAYS OTHER POOLS OF MONEY THAT WE'RE ELIGIBLE FOR AND COMPETE FOR AND, AND GAIN, UM, THAT YOU ASKED A VERY SPECIFIC QUESTION ABOUT ONE PIECE OF IT, WHICH WAS POTHOLE MAINTENANCE.
UM, THE, THE BILL THIS MONTH FOR POTHOLES FROM, UH, WE BROUGHT IN LA COUNTY TO SUPPLEMENT OUR CREWS WE'RE SO FAR BEHIND ON THE POTHOLES.
WE WANTED TO SUPPLEMENT UNDER THE CITY SERVICES AGREEMENT WITH COUNTY ROAD DEPARTMENT ABOUT $15,000 THIS MONTH JUST FOR COUNTY CREWS TO RUN OUR STREETS AND FILL OUR POTHOLES.
SO, UM, WE THINK WE'RE KEPT UP WITH IT AS BEST WE CAN, BUT WE HAD AN AWFUL LOT OF RAIN THIS YEAR AND RAIN IS THE ENEMY OF ASPHALT.
ONE LAST QUESTION, UH, WITH REGARDS TO LITIGATION.
IF JOINING THIS ORGANIZATION THAT YOU MENTIONED HAS MITIGATED THAT PROBLEM, WHY HAS THERE BEEN AN INCREASE IN THE, THE COST THAT WE'RE PAYING FOR THE ATTORNEY THEN? DIDN'T WE GO FROM 30 TO 40? WHY, WHY, WHY THE INCREASE AND WAS IT, WHAT DID THEY CALL THAT RFP, PULL IT OUT TO SEE IF A BETTER PRICE COULD BE OBTAINED? WELL IT'S, IT'S A, A FAIR QUESTION.
UM, THE CITY COULD AT ANY TIME ISSUE AN RFP AND SHOP FOR, FOR THOSE SERVICES LIKE WE SHOT FOR OTHERS, YOU KNOW, ENGINEERING OR YOU KNOW, NAME ONE.
UM, WE DIDN'T DO AT THIS TIME, THE CITY HAS, UM, ENJOYED A SOUND RELATIONSHIP WITH THE FIRM THAT SERVES AS OUR CITY ATTORNEY JONES AND MAYOR.
UM, AND I THINK IT WAS, UM, JUSTIFIED BASED ON THE, THE QUALITY OF THE WORK THAT THEY DO AND THE FACT THAT THEY HADN'T HAD THEIR HOURLY RATES ADJUSTED FOR SOME TIME.
I KNOW WHEN WE GO OUT TO BRING IN OTHER SPECIALIZED OUTSIDE COUNCIL, THE RATES OF THE SPECIALIZED COUNCIL ARE TWICE WHAT WE'RE PAYING JONES
[00:40:01]
AND MAYOR TWICE PER HOUR.UM, IT'S, IT'S STAGGERING WHAT SOME OF THOSE SPECIALIST LAWYERS CAN CAN LEGITIMATELY BILL YOU.
ONE LAST QUESTION CAUSE I DO HAVE TO LEAVE.
UM, LA COUNTY HAS A PROGRAM WHERE RESIDENTS CAN FILE A CLAIM FOR DAMAGES SUFFERED BY THEIR VEHICLES AS A RESULT OF POTHOLES.
DO WE HAVE THAT PROGRAM AVAILABLE HERE IN THE CITY OF WEST COVINA? WE DO.
AND WE GET CLAIMS AND, AND IF THEY'RE JUSTIFIED AND, UH, YOU KNOW, IF A TREE FALLS ON YOUR CAR OR THERE'S SOME PROBLEM WHERE WE RUIN YOUR FRONT END WITH ONE OF OUR POTHOLES, WE TRY AND SETTLE THOSE VERY QUICKLY.
AND WHAT WE FIND WITH THE CLAIMS IS WHERE THEY GET EXPENSIVE IS WHEN YOU IGNORE THEM HOPING THEY'LL GO AWAY.
I MEAN, A TYPICAL LITTLE TRIP AND FALL ON A SIDEWALK COSTS ON AVERAGE 35 $40,000 AND YOU KNOW, YOU'VE NOT ONLY INCURRED FINANCIAL EXPENSE WITH SIDEWALKS, BUT YOU'VE, YOU KNOW, BROKEN GRANDMA'S ARM AND AFFECTED HER LIFE.
BUT THE COST IS, YOU KNOW, HALF OF IT, THE LAWYERS, THEY GET ONE, WE GET ONE AND AND YOU'RE GONNA LOSE AND YOU'RE GONNA PAY.
SO YOU'RE BETTER OFF JUST TO PAY QUICKLY.
YOU'RE EVEN BETTER OFF IF YOU CAN PROACTIVELY FIX YOUR SIDEWALKS.
AND SO WE'RE TRYING REAL HARD WITH THE PAVEMENT MANAGEMENT PROGRAM TO, TO BE MORE AGGRESSIVE ABOUT SIDEWALK REPAIRS PROSPECTIVELY.
BUT WE, WE, WE GET CLAIMS AND, AND WE EVALUATE THEM AND, AND WE WE PAY THEM WHEN THEY'RE JUSTIFIED.
YES, I DID PULL UP THE, UH, HOW TO FILE A CLAIM WITH THE CITY ONLINE, BUT I BELIEVE, UH, COLLEEN, DID YOU HAVE HI COLLEEN ROSATI AGAIN.
TH THIS 13.5 MILLION ON THIS FIRE STATION REPLACEMENT.
SO WHAT HAPPENS TO THE CITY YARD? IS THAT PART OF THE DEAL ALSO? IT WOULD BE.
SO WOULD YOU BE TEARING DOWN THE CITY YARD THEN? WHY DO YOU HAVE BUDGETED CITY YARD ROOF 250,000 CITY YARD RENOVATION, 750,000 TOTALING A MILLION IF YOU'RE GONNA BULLDOZE IT? THAT'S A, A FAIR QUESTION.
I, WE'VE GOT, UM, A ROOF THAT LEAKS THERE AT THE PUBLIC RICKARD SUCH THAT IT'S NOT FAIR TO ASK EMPLOYEES TO SIT THERE WITH THE OPEN TO THE SKY CONDITION.
AND SO WE DIDN'T HAVE ANY CHOICE BUT TO FIX THE ROOF IMMEDIATELY.
THAT'S, SO THAT'S WHY THAT'S BEING DONE.
WE, I GUESS COULD HAVE PRETENDED THE PROBLEM WASN'T THERE.
BUT THESE LAND TRANSACTIONS, WHEN YOU DO DEVELOPMENT AGREEMENTS TEND TO TAKE YEARS AND, AND WE'VE GOT PEOPLE WORKING THERE, YOU KNOW, TODAY THAT NEED TO BE IN, IN PROPER WORKSPACES.
AND SO WE WANTED TO ADDRESS THAT AS A, A SERIOUS IMMEDIATE PROBLEM.
WE'VE BEEN CHASING ROOFS, UM, ALL YEAR LONG.
GOT A NEW ROOF ON THE DISPATCH CENTER.
THE CITY HALL ROOF SEEMS TO BE HOLDING NOW.
UM, UM, IT'S, IT'S UM, IT'S A LONG DEFERRED CAPITAL EXPENDITURE.
THIS CITY JUST KIND OF ALLOWED ALL OF THOSE ASSETS, LIKE MANY OTHERS TO RUN TO FAILURE TILL THEY JUST COMPLETELY WORE OUT.
UM, AND THEN WE HAVE TO SCRAMBLE.
UM, SO WE'RE, WE'RE CHASING ROOFS AND I'M GONNA CONTINUE TO DO SO, UM, UNTIL I GET 'EM ALL WATERTIGHT.
WHAT ABOUT THE 750,000 REPLACEMENT OR RENOVATIONS? IF YOU'RE GONNA BULLDOZE THE CITY YARD BUILDING, WHY WOULD YOU RENOVATE IT FOR 750,000? UM, WE HAVEN'T BROUGHT THAT PROJECT FORWARD YET, BUT I THINK THERE'S, THERE'S A NEED THERE THAT, THAT WOULD IN FACT BE JUSTIFIED IF WE WERE GOING TO STAY.
SO IF YOU DON'T USE THAT 750,000 TO RENOVATE, WHERE WOULD YOU MOVE THAT MONEY TO? HMM.
YOU WANNA TAKE A RUN AT THAT ONE? WELL, THERE WAS A NUMBER OF FACILITIES THAT WE'VE KIND OF, UH, TALKED ABOUT.
A LOT OF OUR FACILITIES ARE IN NEED OF IMPROVEMENTS AND THAT WAS, UM, TH THIS PARTICULAR PROJECT WAS TALKED ABOUT AND CONSIDERED THROUGH WITH THE MANAGEMENT TEAM.
AND WHILE YES, THE BUILDING MAY GO DOWN, THERE ARE OTHER ELEMENTS THERE ASIDE FROM THE ROOF THAT PROBABLY NEED TO BE ADDRESSED, UM, IN ORDER TO
[00:45:01]
KEEP THE BUILDING OPERATIONAL.SO THAT'S WHY THAT MONEY WASN'T MOVED.
AND IF IT IS, IT'LL PROBABLY GO TO ANOTHER FACILITY.
SO IS THERE A TIMELINE FOR THIS 13.5 MILLION REPLACEMENT? IS IT A YEAR OR TWO YEARS OR FIVE MINUTES FROM NOW OR? I, I WOULD PUT IT YEARS AWAY.
WE ARE NOT IN CONTRACT WITH A DEVELOPMENT COMPANY TO SELL THAT LAND OR TO RECEIVE THE PROCEEDS FROM THIS SALE.
AND WE'RE DEALING WITH THE STATE ON A SURPLUS LAND ACT, YOU KNOW, VALIDATION.
IT'S, IT JUST THESE TRANSACTIONS HAVE A WAY OF TAKING MULTIPLE YEARS TO, TO BRING TO FRUITION.
IT'S NOT, NOT LIKELY TO BE ANYTIME SOON.
SO IF, IF WE'RE GONNA GO INTO A PARTNERSHIP WITH SOMEONE WHO WILL HELP REPLACE THIS FIRE STATION AND GET RID OF THE, THE LITTLE CHAMBER OF COMMERCE BUILDING, WHICH IS AN EYESORE.
WHAT DO THEY WANT IN RETURN? I'VE HEARD DIFFERENT THINGS.
JUST A CLARIFICATION IF YOU KNOW.
WELL WHEN WE PUT IT OUT THE LAST TIME WE SOLICITED PROPOSALS WITH KIND OF AN OPEN ARCHITECTURE MM-HMM.
MAYBE A HOTEL, MAYBE HOTEL AND APARTMENTS.
BUT WHEN IT GOES OUT AGAIN, WE'LL SURVEY THE MARKET AND SEE WHAT PROPOSALS WE GET.
I WOULD THINK, UM, MAINLY HOUSING IN THIS MARKET, HOUSING SEEMS TO BE PRETTY VIABLE.
SO IT WOULD BE HOUSING IN THAT SPACE WHERE THE CITY YARD IS BECAUSE THE REST OF IT WOULD BE TAKEN UP FOR FIRE I ASSUME, OR PRETTY CLOSE TO IT, THAT CORNER.
WELL ONE OF THE CONVERSATIONS WE'VE HAD ABOUT REPLACING FIRE STATION ONE ON A PERMANENT LOCATION IS TO MOVE IT TO THE CIVIC CENTER CAMPUS.
NOW I'VE GOT SOME VERY PRELIMINARY PLANS, I'D BE HAPPY TO SHARE WITH YOU THAT SHOW IT GOING OVER THERE NEXT TO THE LIBRARY.
SORRY I'M MAKING MYSELF THROUGH THIS 266 PAGE DOCUMENT.
UM, MY QUESTION WAS REGARDS TO, UH, PENSION PAYOUT, UM, LOOKING HERE AT FIRE POLICE AND NOT SEEING A LINE ITEM THERE, WAS JUST CURIOUS, WHAT IS OUR ANNUAL PENSION PAYOUT TO JUST, I'M SORRY, OUR, UM, OUR U A L PAYMENT? UM, OR, OR JUST A REGULAR PENSION BECAUSE THE REGULAR PENSION THAT THE EMPLOYEES PAY IN OUR ANNUAL RATE CONTRIBUTIONS IS INCLUDED IN THE BUDGET.
HOWEVER, UM, OUR, WE, I WON'T SAY ELIMINATED.
WE FINANCED OUR UNFUNDED OBLIGATIONS WITH CALPERS IN 2020 AND 2021 AND THEREFORE MOVED IT OVER INTO, NOW WE MAKE BOND PAYMENTS ON THAT.
SO IT'S IN OUR DEBT SERVICE NO LONGER IN A GENERAL FUND EXPENSE TOWARDS PENSION OBLIGATIONS, IF THAT'S WHAT YOU'RE LOOKING AT.
AND WHAT WOULD THAT AMOUNT BE? I GUESS WHAT I'M CURIOUS ABOUT? YES, SO LET ME PULL THAT UP FOR YOU CUZ I DON'T HAVE THAT AMOUNT MEMORIZED FOR NEXT FISCAL YEAR.
WHAT HERE? UM, 21 OF OUR LAST, SORRY, THAT'S, SO FOR NEXT FISCAL YEAR, FOR EXAMPLE, WE'LL BE PAYING 11.1 MILLION TO OUR LEASE REVENUE BONDS THAT WE REFINANCED, THAT WE FINANCED.
I THINK THAT THE NUMBER YOU WERE LOOKING THERE WAS 204 MILLION AND AT THE TIME WE DID THAT PENSION TRANSACTION, WE WERE CARRYING THAT DEBT AT CALPERS AND PAYING THEM 7%.
SO WE GOT THE CITY RATED, WE WENT TO MOODY'S AND STANDARD AND PORES, WE GOT OURSELVES AN A PLUS RATING AND WE TOOK THAT DEBT TO MARKET AND BASICALLY THINK OF IT AS A MORTGAGE REFINANCE, NO CASH OUT.
SO WE, WE WENT FROM 7% TO 3.7199999999999998% FIXED AND KEPT THE TENOR THE SAME.
SO THE TIME TERM DIDN'T EXTEND AND, AND THE, UM, AMOUNT OF DEBT PAYMENTS DROP DRASTICALLY AS A RESULT OF DROPPING IT FROM 7% TO 3.72 IN THAT SINGLE TRANSACTION WE ACHIEVED IN NET PRESENT VALUE SAVINGS OF ABOUT 52 MILLION.
SO IT'S NOT JUST A SIMPLE NET BURDEN OR ANNUAL BURDEN THAT'S BEING REALIZED.
I I WOULD HOPE NOBODY THOUGHT THAT WAS SIMPLE.
[00:50:01]
WAS, THAT WAS A BIG, THAT WAS A BIG DEAL FOR US.YEAH, NO, I GET AND NO, I UNDERSTAND EVERYTHING, RIGHT AND ACTUALLY I THINK SAVED THE CITY FROM, FROM SOME OTHER UNPLEASANT CHOICES.
IN THAT MOMENT, I THINK THAT YEAR WE HAD PROJECTED GENERAL FUND BALANCE OF ABOUT 1.9 MILLION.
THE NUMBERS THAT STEPHANIE'S SHOWN YOU TONIGHT WERE, WERE NORTH OF 20.
SO IN JUST A FEW SHORT YEARS, WE'VE REALLY SHIFTED IN, IN THE RIGHT DIRECTION.
DOESN'T MEAN WE CAN START OVERSPENDING, WE'RE GONNA HAVE TO BE VERY CAREFUL, BUT IT, IT, IT, UM, WAS AN EFFECTIVE TRANSACTION THAT, UM, WORKED, WORKED OUT REALLY WELL FOR US.
UH, REALLY QUICK ON YOUR HANDOUT, IT'S THE FIRST SQUARE SAYS BALANCED BUDGET BUT CITYWIDE IT'S NOT BALANCED.
DID I MISS THAT SLIDE WHEN YOU DISCUSSED THAT? SO, UH, THE GENERAL FUND IS STRUCTURALLY BALANCED WHEN WE TALK ABOUT THAT.
UM, OBVIOUSLY FOR, UH, CITYWIDE WE'RE UTILIZING A LOT OF OUR SPECIAL REVENUE FUNDS FROM FUND BALANCE.
THAT'S GENERALLY ALL OF OUR SPECIAL REVENUES EITHER ARE REIMBURSED OR WE'RE ALREADY ACCUMULATING THOSE AND ONLY USING THE FUND BALANCE.
UM, BUT WHEN I SPEAK ABOUT BALANCED, I'M TALKING ABOUT IN REGARDS TO OUR GENERAL FUND BEING STRUCTURALLY BALANCED, WHERE WE HAVE THE EXCESS OF, IT'S A SMALL EXCESS OF 1 76, UM, BUT WE DO HAVE AN EXCESS AND WE'RE NOT DIPPING INTO RESERVES.
AND WHAT'S CAUSING THAT ABOUT ROUGHLY 6 MILLION DIFFERENCE, 6 MILLION WIDE, I'M SORRY, 6 MILLION, UH, 1, 2, 3 TO 1 2 9 1 2.
SO YOU ONLY HAVE 123.6 IN REVENUES, BUT 129 IN EXPENDITURES CITYWIDE? YES.
SO WE'RE USING THE FUND BALANCES IN OUR SPECIAL REVENUE FUNDS FOR A LOT OF THAT.
SO THAT 1 29, INCLUDING THAT AS OUR ARPA EXPENDITURES FOR EXAMPLE, WHICH WE RECEIVED 18 MILLION OVER THE COURSE OF TWO YEARS.
SO THAT'S SITTING IN OUR FUND BALANCE, BUT IT'S NOT GONNA BE NEW REVENUE FOR THAT YEAR.
UM, THE SAME GOES FOR A LOT OF OUR MEASURE R AND M.
WE HAVE SIGNIFICANT FUND BALANCES IN THOSE FUNDS, SO WE'RE PROPOSING PROJECTS TO ACTUALLY DO FOR STREETS OUT OF THOSE.
SO WE'LL BE USING DOWN USING DOWNER FUND BALANCE SO WE DON'T HAVE AN OFFSET OF REVENUE ON THAT ON THE CITYWIDE SIDE.
SO THOSE ARE SOME EXAMPLES OF WHERE THAT COMES IN.
MAINLY ON THE CAPITAL PROJECT SIDE, WE'VE, WE WANNA ACCUMULATE ENOUGH MILLIONS OF DOLLARS TO DO A SIGNIFICANT PROJECT.
A SEWER PROJECT FOR EXAMPLE, IS ABOUT I THINK THREE TO $5 MILLION.
SO THAT'S ACCUMULATED OVER SO MANY YEARS.
UM, IN ORDER TO SPIN THAT DOWN, OUR TEAM, MARC, I WE'RE HAVING SOME FUN.
WE, WE'VE GOT LONG DEFERRED NEEDS AND WE'VE SAVED UP SOME OF THESE RESTRICTED MONIES TO ADDRESS THEM.
FOR EXAMPLE, WE'VE TALKED A LITTLE BIT TONIGHT ABOUT PAVING COUNCIL JUST AWARDED THE ANNUAL PAVING PROJECT.
WE'RE GONNA TRY AND GET ANOTHER ONE OUT THE DOOR THIS SUMMER, SO WE COULD DO THREE OR FOUR IN MY OPINION, BUT TO GET TWO OUT WOULD BE A, A BIG, BIG STEP FORWARD FOR US.
THE STEPHANIE MENTIONED THE SEWER FUND, WE'VE GOT, YOU KNOW, UNMET NEEDS IN OUR MASTER PLAN OF SEWERS THAT WE COULD EASILY SPEND, YOU KNOW, 6 MILLION TOMORROW.
BUT WE'RE, WE'VE GOT MAJOR CAPITAL PROJECTS THAT WE'RE NOW ABLE TO DELIVER.
UM, AND UM, IT'S REALLY A PLEASURE TO BE ABLE TO ADDRESS THEM BECAUSE THE DEFERRED MAINTENANCE AND THE, AND THE DEFERRED NEEDS WERE, UM, A LITTLE OVERWHELMING FOR WEST COVINA.
AND THEN WE LOVE PAVING STREETS BY THE WAY.
UH, UNDER SERVICE LEVELS MAINTAINED THE GRAY BOX, THE LAST BULLET POINT TALKS ABOUT TREE TRIMMING AND LANDSCAPING MAINTENANCE.
DOES THAT INCLUDE OUR PARKS THAT ARE LOOKING NOT SO GREAT LATELY? WE DON'T REALLY SEE THE MAINTENANCE TRUCKS AS MUCH AS WE USED TO.
SO JUST WANTED TO KNOW WHAT IS HAPPENING WITH THAT.
WELL, THERE'S A COUPLE THINGS GOING ON WITH RESPECT TO OUR PARKS.
WE'RE WE'RE INVESTING IN PARK INFRASTRUCTURE TO GET ALL OF OUR BUILDINGS TO STANDARD, WHICH IS, YOU KNOW, EASY TO SAY AND HARD TO DO.
BUT WE'VE MADE GOOD GAIN ABOUT THOSE BUILDINGS, GETTING THEM ROOFED, GETTING THEM PAINTED, GET THE TOILETS FUNCTIONAL.
WE'VE ALSO BEEN ADDRESSING, UM, UM, WITH PARK MEASURE A MONEY, UM, MAJOR PROJECTS.
WE USE CDBG MONEY FOR EXAMPLE, FOR THE FRIENDSHIP PARK PLAYGROUND.
I DUNNO IF YOU'VE SEEN THAT ONE, BUT IT'S, IT, IT'S A MILLION DOLLAR PLAYGROUND AND IT'S A JOY.
I THINK IT'S PROVING TO BE A REGIONAL ATTRACTION AND WE WERE ABLE TO QUALIFY IT FOR FEDERAL COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING.
IT ACTUALLY WON AN A P W A AWARD.
[00:55:01]
GOT A LOT OF WORK TO DO YET, BUT, BUT WE'RE WORKING HARD TO LINE UP RESTRICTED MONIES AND, AND EXTERNAL FUNDS TO TACKLE THOSE PROJECTS THAT, THAT WE KNOW NEED TO BE DONE.BUT THE MAINTENANCE HASN'T BEEN CUT.
LIKE THE MAINTENANCE IS A, I I FORGOT TO SAY THE MAINTENANCE IS A, IS A PRIVATE SECTOR CONTRACT AND THAT IS RUNNING AND IN PLACE.
JUST TO ADD TO THE PARKS, UH, SEE IF WE CAN COMMENT ON DOG PARK RENOVATION DOG PARK.
IT'S, IT'S A PROJECT WHICH IS IDENTIFIED IN THE C I P AND UM, STEPHANIE, I'M GONNA SAY A WRONG NUMBER, SO CORRECT ME OR, OR SAY IT BEFORE I DO.
AS I RECALL, IT WAS LIKE WE HAD SET ASIDE 1.2 MILLION FOR DEL NORTE PARK INCLUDING, UH, A, A DOG PARK.
WE'VE GOT A LOT OF NEEDS IN DEL NORTE.
1.3, UH, IS SET ASIDE FOR THAT PARK.
IT'S COMING OUT OF, UH, THE PDF, SO THE PARK DEVELOPMENT OF IMPACT FEES, UM, THAT WE RECEIVED LAST FISCAL YEAR.
SO THIS IS AN EXAMPLE OF YOU WON'T SEE THE REVENUE MATCH THE EXPENDITURES IN THIS FUND BECAUSE WE RECEIVED IT LAST FISCAL YEAR.
AND SO WE ARE SITTING ON THAT FUND BALANCE AND WE'RE GONNA UTILIZE THAT DOWN TO ACTUALLY INVEST IT IN THE PARK.
I WOULD WELCOME IT AND I KNOW SOME PEOPLE AREN'T COMFORTABLE TALKING ON CAMERA OR ON MICROPHONE AND, AND I'LL STICK AROUND AS LONG AS ANYONE WANTS TO TALK ABOUT CITY OF WEST COVINA, LOCAL GOVERNMENT'S.
WELL THANK YOU ALL FOR COMING TONIGHT AND UM, THANK STEPHANIE AND OUR FINANCE DEPARTMENT TEAM FOR A GREAT JOB.