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like to call to order the city of
Belvier finance committee meeting of

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Thursday, April 16th. Uh, Robert, can we
have a roll call?

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» Yes.
>> Cascal,

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» yes.
>> John Wilton is absent. David Walker

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» present.
>> Patrick Federer

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» here.
>> Will Lion

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» present.

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» Sorry. And council member Mark
>> uh here. Thank you.

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» And we also have our city manager Robert
Sadnik and myself Helga Carter, director

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of administrative services.
>> Okay. Um can we first have an open

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forum? There are no members in the
audience. Robert, is anyone online?

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» Nobody online.
>> Okay. So, next item will be to approve

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00:01:02,719 --> 00:01:08,880
the minutes of our last meeting on
January 22nd.

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Are there any comments or changes? And
if not, can I have a motion to approve?

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» So move.
>> Second.

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» Second.
>> Okay. Roll call.

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» Chairman Cascal.
>> Yes.

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» David Walker.
>> Patrick Feder.

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» Yes.
That passes unanimously.

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» He doesn't get to vote. So, yes.
>> Uh, okay. Third agenda item, discussion

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and possible action regarding the
semiannual review of the city's

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investments. Elga,
>> thank you. Thank you, Chair McKascal and

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committee. In February of 24, the
council approved a change to the city's

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investments, which involved transferring
most of the city's fund balance from the

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local agency investment fund or Lif to
Calrust. As part of the update,

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00:02:02,880 --> 00:02:10,399
investment policy staff will provide
investment information to the committee

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on a semianual basis. The Cal Trust
funds earned over 460,000 in interest

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last fiscal year and have generated
350,000 through the first three quarters

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of this fiscal year. In July of 2024,
with the approval of the finance

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committee chair, the remaining 150,000
in Lif was transferred to Calrust

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short-term fund to take advantage of a
slightly higher interest rate, but was

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moved to the liquidity fund in January
of 2025 to take advantage of an even

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slightly higher yield and a more stable
net asset value. Only a small balance

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remains in leaf at this time. Mayor
Wilkinson, committee member Will Lion,

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and I review the investments at the end
of each quarter and recommend any

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changes to Chair McKascal for his
approval per the investment policy.

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00:03:00,959 --> 00:03:09,040
As of the end of the quarter, as of the
quarter ending March 31st, 2026, we

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recommend maintaining the current Cal
Trust allocation. The city fund balance

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00:03:11,760 --> 00:03:18,879
is invested in the liquidity fund which
continues to provide

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the highest return and maintains a
stable net asset value in these

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uncertain times. And with that, staff
are available for questions.

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» Okay, questions or comments?

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Well, you're our expert on this. I
assume you've weighed in on this and uh

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Hugga tells me the recommendation is
that we just keep it where it is. Is

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00:03:47,599 --> 00:03:55,920
that correct?
>> Yeah, that's right. Um I think the only

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thing that I would add is
some of the other funds both at Cal

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Trust and at Leif have moved slightly
above the liquidity fund yield. But

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what's unique about the liquidity fund
is it's got that stable net asset value

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00:04:11,439 --> 00:04:20,959
like a money market fund. So, you know,
if interest rates pop up, we wouldn't

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have a any principal risk. Um I think
what we're we've already kicked off is

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gathering uh additional information both
from Lif um as well as from Cal Trust on

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the um on the Cal Trust funds that we
don't own just to try to level set you

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know across our fund choices you know
from a risk perspective

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um you know I think we've learned that
LEF does in fact have um a stable

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principle of value which I I think is
equivalent to a stable net asset value.

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So I think the point to the committee is
we're going back and getting more

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information. Um you know and I think our
approach to get you know much deeper

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information sort of on an annual basis
uh makes good sense. Um and then we'll

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00:05:05,600 --> 00:05:12,080
come back to this group with a
recommendation because it may make sense

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to split out some assets to try to
capture a little bit uh higher yield if

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the risks are the same. you know both in
terms of um credit quality the

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00:05:20,080 --> 00:05:27,840
underlying bonds as well as the uh
stability of the principal. So expect

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more from us um after doing this deeper
dive.

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00:05:30,080 --> 00:05:37,199
» Okay, other questions or comments from
the committee?

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Um
and Robert, still no one on the public.

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Uh, all right. So, uh, the presumably
the motion that needs to be made is one

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that no change to our current investment
allocation. Is that correct, Helga?

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00:05:49,919 --> 00:05:57,440
» Yes, that's correct.
>> Can I have a motion and a second?

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00:05:54,800 --> 00:06:00,720
» I'll make a motion to approve
if I can vote.

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00:05:58,800 --> 00:06:03,360
» I don't know. He you you can't vote, so
I don't I'm not sure you can make a

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motion.
>> It's true.

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» I don't think so.
>> All right. So, move.

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00:06:06,960 --> 00:06:10,800
» Is there a second?
>> Second.

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» Okay. Roll call.
>> McCascal.

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» Yes.
>> Uh David Walker.

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» I.
>> And Patrick Federer.

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» Yes.
>> That passes unanimously.

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» Okay. Next item on the agenda is the uh
review regarding the fiscal year 2627

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00:06:28,960 --> 00:06:36,199
preliminary operating and capital budget
review. Helga.

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So, thank you, Chair McKascal and
committee. Before you today is a

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00:06:56,080 --> 00:07:04,080
preliminary operating capital budget for
fiscal year 2627.

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00:07:01,919 --> 00:07:10,000
To begin with some revenue highlights,
the general fund revenues are projected

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00:07:06,400 --> 00:07:15,039
to increase by 10.2% or approximately
979,000.

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00:07:12,160 --> 00:07:20,880
Property tax revenue remain the main
driver with overall growth of 5.62%

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00:07:18,639 --> 00:07:25,199
over the current year budget or about
439,000

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00:07:23,120 --> 00:07:31,360
based on the most recent county
estimates. Other property tax revenues

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00:07:27,840 --> 00:07:36,880
are expected to remain flat while the
fire tax revenue is projected to

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00:07:33,680 --> 00:07:42,160
increase by approximately 3% pending
final state data which comes out around

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00:07:39,039 --> 00:07:46,319
May 1st. Development related fee
revenues have increased due to the new

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00:07:44,160 --> 00:07:52,400
user fee schedule that went into effect
July 1st, 2025 and continued development

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00:07:50,160 --> 00:07:58,000
activity, particularly largecale
projects and increased encroachment and

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00:07:55,199 --> 00:08:03,840
road closures. Despite a slight decline
in permit volume, fees are projected to

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00:08:00,479 --> 00:08:09,199
recover approximately 89% of the city's
cost of service. The city council also

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00:08:06,560 --> 00:08:14,639
approved a CPI based adjustment for the
user fee schedule which will be

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effective July 1st, 2026.
B performance in the first year has

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00:08:16,639 --> 00:08:23,680
largely met the 92% cost recovery
target. Therefore, no additional

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00:08:21,360 --> 00:08:28,960
incremental revenue is assumed in the
outer years. Consistent with best

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00:08:26,319 --> 00:08:32,560
practice, no revenue increases were
assumed in the first year of

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00:08:30,400 --> 00:08:38,719
implementation and staff will continue
to monitor cost recovery over time or

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00:08:36,320 --> 00:08:45,440
trends over time as they may fluctuate
with broader economic conditions.

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00:08:41,680 --> 00:08:51,680
Onetime increase in building permit plan
review and road impact fee revenue is

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00:08:48,320 --> 00:08:58,080
anticipated in fiscal year 2728 from the
Mard Point project based on the current

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00:08:54,320 --> 00:09:03,040
timeline. Timing remains uncertain and
staff will refine revenue projections as

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00:09:00,800 --> 00:09:07,120
the project advances.
No grant funding is included in the

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00:09:05,279 --> 00:09:11,760
proposed budget at this time, though
staff will continue to pursue

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00:09:08,880 --> 00:09:16,080
opportunities through partner agencies.
Overall revenue projections remain

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00:09:13,920 --> 00:09:23,560
strong, but are intentionally
conservative to support long-term fiscal

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00:09:18,640 --> 00:09:23,560
stability amid the economic uncertainty.

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And now on the expenditure side from the
general fund, fiscal year 2526 was the

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00:09:35,839 --> 00:09:42,080
last year of a three-year contract with
the city's represented and

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00:09:39,600 --> 00:09:46,880
non-represented groups. The city is
currently engaged in labor negotiations

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00:09:44,320 --> 00:09:52,080
and anticipates reaching an agreement in
the coming weeks. The fisc year 2627

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00:09:50,080 --> 00:09:58,080
budget incorporates the results of a
compensation study and a 2 and a.5% cost

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00:09:55,200 --> 00:10:04,080
of living adjustment. A 3% salary
increase has been assumed across the

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00:09:59,839 --> 00:10:08,720
outer years. The fiscal year 2627 budget
includes 235,000

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00:10:06,320 --> 00:10:13,360
for a temporary police officer position
over a three-year period to support

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00:10:11,200 --> 00:10:17,600
operations during the police department
evaluation.

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00:10:15,040 --> 00:10:22,079
The budget includes 150,000 for
implementing the housing element goals,

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00:10:19,920 --> 00:10:27,680
programs, and policies along with
funding for general legal costs and

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00:10:24,160 --> 00:10:33,680
ongoing litigation. It also allocates
50,000 for the city's 2030 climate

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00:10:30,320 --> 00:10:39,519
action plan. Expenditures related to the
Malard Point project include 150,000 for

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00:10:36,959 --> 00:10:46,000
a special project manager, 10,000 for
relocation specialists, and 40,000

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00:10:42,560 --> 00:10:49,600
45,000 for city engineering services.
These costs will be reimbursed in

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00:10:47,839 --> 00:10:55,120
accordance with the agreement with the
developer. Tibberon Fire is estimating a

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00:10:52,959 --> 00:10:59,760
seven and a half% increase in our
contract costs again this coming fiscal

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00:10:57,279 --> 00:11:05,360
year due to increase in district
expenditures related to station 10

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00:11:03,279 --> 00:11:11,360
from the capital equipment fund. The
budget includes 70,000 to replace an

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00:11:07,839 --> 00:11:17,839
aging public works utility truck, 70,000
for a police handheld radar unit, and

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00:11:14,560 --> 00:11:23,519
13,500 for replacement of several staff
computers, a server, and backup power

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00:11:20,560 --> 00:11:28,240
systems. From the capital improvement
fund, the budget includes the Beach Road

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00:11:26,000 --> 00:11:36,000
stabilization project scheduled from
June through October of 26 with a total

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00:11:31,519 --> 00:11:42,480
cost of 4.97 million. Of this 4.68
million will be funded from the critical

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00:11:38,240 --> 00:11:49,360
infrastructure reserve with 345,000
from other sources to close the gap. An

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00:11:46,160 --> 00:11:54,320
estimated 2.48 million will roll over
from fiscal year 2526 and the

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00:11:52,160 --> 00:11:59,680
construction contract was approved by
council on April 13th.

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00:11:57,120 --> 00:12:04,880
The five-year CIP includes ongoing
annual funding of 80,000 for lane

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00:12:02,000 --> 00:12:10,800
improvements and 15,000 for vegetation
management and fire fuel reductions.

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00:12:08,000 --> 00:12:15,920
Key projects next year include Harry B.
Allen stair repairs, community park

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00:12:13,120 --> 00:12:20,880
restroom renovations, redrilling of the
community parkwell, and police

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00:12:18,000 --> 00:12:25,040
department improvements. The budget also
includes 60,000 to complete the

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00:12:22,959 --> 00:12:31,200
infrastructure assessment which will
inform the fiscal year 2728 capital

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00:12:28,160 --> 00:12:37,320
budget. Several projects are expected to
be partially funded through partner

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00:12:32,880 --> 00:12:37,320
agencies and private donations.

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00:12:37,920 --> 00:12:46,000
And this brings us to uh another large
part of the city's expenditures are

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00:12:43,200 --> 00:12:51,839
staffing costs. Personnel costs are
projected to increase in fiscal year

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00:12:48,160 --> 00:12:56,240
2627 over estimated actuals primarily
due to staffing additions and

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00:12:53,680 --> 00:13:02,320
compensation adjustments. Regular
salaries are increasing by 21%

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00:12:59,360 --> 00:13:09,519
approximately 535,000
driven by higher staffing levels with 21

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00:13:07,120 --> 00:13:14,880
staff headcount in the proposed budget
verse 18.4 4 actual headcount in fiscal

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00:13:12,959 --> 00:13:20,959
year 2526
which is an increase of about 14% over

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00:13:17,920 --> 00:13:26,720
estimated actuals. Implementation of the
compens

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00:13:23,200 --> 00:13:31,360
compensation study of 4% increase or
124,000

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00:13:28,240 --> 00:13:37,040
and a 2 and a half% cola or about
75,000.

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00:13:33,519 --> 00:13:42,000
Lower fiscal year 2526 staffing and
expenditures reflect vacancies in police

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00:13:39,920 --> 00:13:47,200
administration and public works during
the current fiscal year. These positions

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00:13:44,880 --> 00:13:53,200
have all been filled with administration
position new hire starting April 28th.

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00:13:51,040 --> 00:13:59,440
Health insurance costs are projected to
rise by 22% reflecting a 9% increase in

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00:13:57,040 --> 00:14:04,480
premiums as well as the addition of
family rate coverage for the new police

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00:14:01,600 --> 00:14:11,120
position. The city's unfunded acred
liability contribution is increasing by

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00:14:07,120 --> 00:14:16,560
45% approximately 104,000
over the fiscal year 26 actuals

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00:14:14,240 --> 00:14:21,680
consistent with fluctuations driven by
Kalpers's investment performance,

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00:14:19,120 --> 00:14:25,519
actuary assumptions and retiree
experience.

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00:14:23,279 --> 00:14:31,040
Other personnel costs are also
increasing primarily due to the addition

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00:14:28,240 --> 00:14:37,279
of 1.5 positions in the police
department in co impacting costs such as

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00:14:34,480 --> 00:14:40,920
holiday pay, shift differential, and
education incentive.

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00:14:41,760 --> 00:14:48,240
And this next slide highlights the
city's required pensions related

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00:14:46,160 --> 00:14:53,360
payments to Kalpers, including
contributions toward the unfunded acred

168
00:14:50,639 --> 00:15:00,639
liability and payments associated with
the pension obligation lease lease back

169
00:14:55,839 --> 00:15:07,120
debt. The fiscal year 2627 UL payment is
based on the most recent Kalpers actuary

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00:15:03,279 --> 00:15:14,000
valuation as of June 30th, 2024, which
reflected an investment return of 9.3%.

171
00:15:11,440 --> 00:15:19,199
However, prior years continue to impact
current and future contribution

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00:15:15,839 --> 00:15:24,880
requirements, including a negative 6.1%
return for the period ending June 30th,

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00:15:21,760 --> 00:15:28,959
222 and a 5.8%
return for the period ending June 30th,

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00:15:27,360 --> 00:15:34,639
2023.
Both of which fell below the Kalpers's

175
00:15:31,120 --> 00:15:40,399
assumed rate of 6.8%. And the impacts of
the June 24 investment return impacts

176
00:15:38,079 --> 00:15:47,120
are reflected in the slight decrease in
the UAL in year four and five. Again, UL

177
00:15:44,880 --> 00:15:52,959
costs may fluctuate annually based on
investment performant changes in actuary

178
00:15:49,839 --> 00:15:58,720
assumptions and retiree experience.
The pension related debt obligation will

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00:15:55,519 --> 00:16:03,759
have a final payment of 123,000 in
fiscal year 3132.

180
00:16:01,920 --> 00:16:08,720
We are also planning a review of the
city's pension funding strategy for this

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00:16:06,480 --> 00:16:14,000
coming December, including whether some
section 115 assets should be transferred

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00:16:11,199 --> 00:16:17,720
to Kalpers. This item will be discussed
later on the agenda.

183
00:16:18,240 --> 00:16:25,920
This next slide shows the anticipated
transfers from the general fund that are

184
00:16:22,560 --> 00:16:33,279
part of this budget. The fire is 1.42
million, pension 115 trust 300,000.

185
00:16:29,759 --> 00:16:38,320
pension related debt 237,000.
The budget includes a $100,000 transfer

186
00:16:36,320 --> 00:16:43,839
to the insurance and legal reserve fund
to cover ongoing uninsured legal expense

187
00:16:41,519 --> 00:16:48,880
with a reduction in the transfer amount
reflecting an anticipated decrease in

188
00:16:46,720 --> 00:16:55,360
legal costs and bringing the fund to its
minimal required balance. the capital

189
00:16:51,680 --> 00:17:01,360
improvement fund of 184,000
and the $75 transfer to the critical

190
00:16:59,040 --> 00:17:06,640
infrastructure reserve was budgeted in
2526 to support the beach road

191
00:17:04,079 --> 00:17:12,079
stabilization project. The fund will
also be renamed the long-term capital

192
00:17:08,720 --> 00:17:15,839
planning fund and received 1.1 million
to support future capital needs

193
00:17:14,319 --> 00:17:21,120
identified through upcoming
infrastructure assessments. And finally,

194
00:17:18,640 --> 00:17:24,439
the equipment replacement fund transfer
of 89,500.

195
00:17:26,640 --> 00:17:33,919
Brings us to a summary of the proposed
budget. The budget anticipates total

196
00:17:30,640 --> 00:17:38,799
operating revenues of 11.86 million and
total operating expenditures of 11.16

197
00:17:36,880 --> 00:17:44,080
million resulting in an operating
surplus of just over 700,000.

198
00:17:42,000 --> 00:17:47,760
Capital revenues are estimated at
545,000

199
00:17:45,679 --> 00:17:55,039
while capital expenditures are projected
to be 3.31 million leading to a capital

200
00:17:51,120 --> 00:18:00,320
fund deficit of 2.77 million primarily
due to the 2.23 million in expenditure

201
00:17:57,919 --> 00:18:05,520
for the Beach Road stabilization project
next year. In summary, revenues are

202
00:18:03,200 --> 00:18:13,039
projected at 12.41 million and
expenditures at 14.48 million resulting

203
00:18:09,360 --> 00:18:17,679
in a 2.07 07 million deficit. This is
primarily due to the one-time cost for

204
00:18:15,120 --> 00:18:21,840
the Beach Road stabilization project and
largely funded by the critical

205
00:18:19,360 --> 00:18:26,480
infrastructure reserve. Following this
one-time expense, the budget is expected

206
00:18:24,080 --> 00:18:29,480
to return to more typical operating
levels.

207
00:18:30,000 --> 00:18:39,960
This slide shows projected fund balances
as of June 30th, 2027. General fund

208
00:18:35,760 --> 00:18:39,960
begins fiscal year 2026

209
00:18:40,080 --> 00:18:50,640
at or 20 begins fiscal year 27 at 7.21
million above the reserve target and

210
00:18:48,080 --> 00:18:56,160
after planned transfers for fire capital
pensions

211
00:18:52,720 --> 00:19:01,039
is projected to end the year at 5.63
million. The critical infrastructure

212
00:18:58,160 --> 00:19:07,039
reserve reflects a 2.49 49 million
transfer out and a 705 transfer in,

213
00:19:04,240 --> 00:19:12,000
resulting in a remaining balance of 1.1
million. As mentioned previously, this

214
00:19:10,080 --> 00:19:16,559
fund will be renamed the long-term
capital planning fund to support future

215
00:19:14,240 --> 00:19:22,000
capital needs identified through the
infrastructure assessments. The budget,

216
00:19:19,440 --> 00:19:27,520
as submitted, anticipates returning to a
more normal state following the city's

217
00:19:25,360 --> 00:19:32,960
allowing the city to replenish the newly
renamed long-term capital planning fund

218
00:19:29,679 --> 00:19:39,280
to over 1.53 million by the end of the
forecast period.

219
00:19:36,160 --> 00:19:44,400
And this brings us to the general fund
reserve. The reserve policy is to

220
00:19:41,600 --> 00:19:50,400
maintain a reserve equal to 50% of the
projected general fund expense plus fire

221
00:19:47,280 --> 00:19:55,679
transfer plus pension debt service. This
budget incorporates the policy with the

222
00:19:52,880 --> 00:20:01,760
reserve goal at 50% of the fiscal year
2728 projected

223
00:19:59,440 --> 00:20:07,840
general fund expense plus fire transfer
plus debt service which is 5.27 million.

224
00:20:05,520 --> 00:20:13,679
The projected general fund balance at
the end of next fiscal year is 5.63

225
00:20:11,360 --> 00:20:17,840
million. The projected general fund
balance is over the policy goal by

226
00:20:16,080 --> 00:20:21,160
354,000
or 53%.

227
00:20:21,440 --> 00:20:28,400
And this slide shows the history of the
general fund's actual ending fund

228
00:20:25,200 --> 00:20:33,919
balance, the fiscal year 2526
estimated general fund balance of 7.21

229
00:20:31,919 --> 00:20:38,880
million and shows the five-year
projections. The green line reflects the

230
00:20:36,320 --> 00:20:42,799
council's reserve policy goal. And as
you can see, the budget reflects that it

231
00:20:40,960 --> 00:20:49,840
does meet the reserve policy goal for
the next five years.

232
00:20:46,720 --> 00:20:54,000
And in and in conclusion, a few
highlights of the budget are the general

233
00:20:51,600 --> 00:21:00,480
fund reserve is met over the five-year
forecast period. We continue with annual

234
00:20:56,720 --> 00:21:04,159
contributions to our 115 pension trust,
contributions to the critical

235
00:21:02,159 --> 00:21:09,360
infrastructure reserve to fund the Beach
Road stabilization construction project,

236
00:21:07,280 --> 00:21:14,080
and plans to replenish the fund in
future years. The budget reflects a

237
00:21:11,600 --> 00:21:18,240
physical fiscally conservative approach
that prioritizes maintaining staffing

238
00:21:16,480 --> 00:21:21,960
levels and support the city's
operational needs.

239
00:21:23,200 --> 00:21:29,200
What are our next steps today? We're
looking for your input, which we'll

240
00:21:26,799 --> 00:21:33,919
incorporate as we continue to refine the
budget. We'll then bring the draft to

241
00:21:31,200 --> 00:21:39,679
the city council on May 11th for review
and feedback and return on June 8th for

242
00:21:36,240 --> 00:21:44,840
adoption following the public hearing.
And with that, I'd be happy to take any

243
00:21:41,840 --> 00:21:44,840
questions.

244
00:21:47,440 --> 00:21:55,640
David, since you had sent us a list of
questions, do you want to start going

245
00:21:52,080 --> 00:21:55,640
through your questions?

246
00:21:55,760 --> 00:22:01,600
We'll
>> get to step back just quickly. There was

247
00:21:58,880 --> 00:22:08,440
one comment on the
investment

248
00:22:03,120 --> 00:22:08,440
made and that was on page two

249
00:22:08,640 --> 00:22:14,480
where it says under restricted
investments in the middle of the first

250
00:22:12,880 --> 00:22:19,120
paragraph,
these funds are not available. The on

251
00:22:17,120 --> 00:22:24,080
operating costs and restricted for
pension costs.

252
00:22:21,840 --> 00:22:30,240
And correct me if I'm wrong, but I might
write that sentence as these funds are

253
00:22:27,440 --> 00:22:33,679
restricted for pension costs.
And the reason I would say that is

254
00:22:32,080 --> 00:22:38,799
because
they can be used for operating costs in

255
00:22:36,559 --> 00:22:44,480
the sense of covering the current year's
pension payments. And if you think about

256
00:22:41,919 --> 00:22:49,280
it, um,
you know, we think something around 34

257
00:22:47,200 --> 00:22:55,600
of a million
a year in pension costs 700,000

258
00:22:52,159 --> 00:23:02,080
something like that. And uh
so if you had uh 3 million in this 115

259
00:23:00,080 --> 00:23:07,120
fund or three and a half million or
something, you you could actually pay

260
00:23:04,799 --> 00:23:12,799
your pension operating costs for four or
five years

261
00:23:09,120 --> 00:23:21,039
out of that fund. And that's sort of a
secondary benefit. Um because we set

262
00:23:17,120 --> 00:23:28,159
that fund up to more fully fund the
crude liability rather than the pushing

263
00:23:24,480 --> 00:23:33,679
current policy liabilities for future
source

264
00:23:30,320 --> 00:23:37,760
but it also is that secondary benefit is
quite tremendous and powerful. It's

265
00:23:35,360 --> 00:23:43,440
unlikely we would need to call on that
but you just mentioned in the budget

266
00:23:40,400 --> 00:23:47,919
review we have this sort of secure
balance

267
00:23:44,799 --> 00:23:53,760
this other 15 fund
has residual secondary benefit of that

268
00:23:50,480 --> 00:24:01,640
same. So I think just for the record if
we think of it as restricted for pension

269
00:23:56,159 --> 00:24:01,640
costs um that's probably appropriate.

270
00:24:04,320 --> 00:24:12,559
» Okay, we can make that change. Sally,
where are you looking for? I'm I'm not

271
00:24:09,280 --> 00:24:16,159
seeing it. Page two of the
memo

272
00:24:13,600 --> 00:24:18,720
» paragraph under restricted investments.
>> It's really operational aspect,

273
00:24:18,159 --> 00:24:23,440
» right?
>> It's restricted to pension costs.

274
00:24:20,640 --> 00:24:29,279
» Oh, sure.
>> I think that gets lost. Again, it's not

275
00:24:26,240 --> 00:24:34,080
our primary purpose, but it's
>> powerful reserve.

276
00:24:32,080 --> 00:24:40,320
» Okay.
Next.

277
00:24:36,400 --> 00:24:43,760
» Well, I sent an email to you as the
chair and

278
00:24:41,679 --> 00:24:50,240
» Oh, okay.
>> Robert

279
00:24:46,000 --> 00:24:53,240
wants to just dive into that.
>> Sure.

280
00:24:55,600 --> 00:25:03,600
» So, I can go through your questions. Um,
>> you need to read read the question

281
00:25:02,000 --> 00:25:06,880
first, Helga, since the
>> Oh,

282
00:25:04,240 --> 00:25:13,120
» full committee doesn't have the email.
Um the first question was around

283
00:25:09,919 --> 00:25:16,880
planning and building and why there are
kind of fluctuations in the outer years

284
00:25:15,520 --> 00:25:19,679
of the planning and building
expenditures.

285
00:25:18,480 --> 00:25:25,679
Correct, David?
>> Yeah. Recognizes

286
00:25:22,000 --> 00:25:34,400
um that we've got significant increase
associated with Malard Point. Um goes up

287
00:25:29,679 --> 00:25:42,320
for a few years, then it comes down. Um
but is questioning um

288
00:25:38,640 --> 00:25:49,120
when it comes back down uh does that
fully u eliminate the malard point costs

289
00:25:46,400 --> 00:25:53,039
by the final year in the five-year
budget?

290
00:25:50,799 --> 00:25:58,559
Um
it asks about how these malard point

291
00:25:55,840 --> 00:26:06,400
costs the outside consultants are pretty
obvious. Um but the um planning and

292
00:26:03,440 --> 00:26:12,320
building uh personnel and u benefit
costs how those go up and how they come

293
00:26:09,600 --> 00:26:17,760
back down and and again are they fully
down by year five

294
00:26:14,880 --> 00:26:25,440
and then it I don't know if I noted in
that email but if you take the 2526

295
00:26:23,360 --> 00:26:33,760
expected actual for planning and
building and compare that to the fifth

296
00:26:29,360 --> 00:26:40,320
year of the budget. Um
it's a uh about a 59%

297
00:26:37,279 --> 00:26:45,760
increase or about 10% a year over that
fiveyear period. So that's that's the

298
00:26:43,039 --> 00:26:50,640
sort of overall context. Um we recognize
the Malard point aspect.

299
00:26:48,640 --> 00:26:55,919
I'm wondering about how that relates to
the actual staffing personnel and

300
00:26:53,840 --> 00:27:02,159
benefit costs
and the are those fully out by the final

301
00:26:59,279 --> 00:27:07,440
year and if they are we're still rolling
on about a 10% annualized increase in

302
00:27:05,279 --> 00:27:14,320
that department.
So, we're not anticipating any

303
00:27:09,679 --> 00:27:20,159
additional staff for the related to the
malard in addition to the special

304
00:27:17,679 --> 00:27:24,320
consultants that we're hiring. So, our
staffing positions, we're not planning

305
00:27:22,240 --> 00:27:31,440
to increase those related to the
project. The part of the increase in

306
00:27:28,559 --> 00:27:36,720
those outer years is planning for the
2030 general plan update. I spread

307
00:27:34,559 --> 00:27:42,159
660,000
over a three-year period in those outer

308
00:27:39,279 --> 00:27:48,640
years and then I backed it out. So
that's what accounts for those

309
00:27:44,000 --> 00:27:54,720
fluctuations in those years. I didn't
in this current in the upcoming budget

310
00:27:51,600 --> 00:27:59,520
the proposed budget I budgeted the 150
for the Mard project special

311
00:27:58,000 --> 00:28:06,080
um
coordinator spec and so in speaking with

312
00:28:03,440 --> 00:28:17,000
our director of planning and building we
do anticipate that that person will be

313
00:28:09,679 --> 00:28:17,000
on board for the project but Um,

314
00:28:19,600 --> 00:28:28,480
and depending on what applications are
submitted next, it will determine what

315
00:28:24,480 --> 00:28:32,799
the comp consultants needs
in what they need to oversee in the

316
00:28:30,559 --> 00:28:40,320
future. So we'll have a better idea of
what that um consultant's activity will

317
00:28:37,039 --> 00:28:46,000
be in the outer years. But it the cost
of the 150 is still within the budget

318
00:28:43,200 --> 00:28:52,880
over the five years.
Hopefully that answers your question.

319
00:28:48,240 --> 00:28:57,760
» You're saying the 150 is annual for five
years.

320
00:28:54,080 --> 00:29:03,520
» Yes. So, you have 750,000
in the five-year forecast for the uh

321
00:29:01,120 --> 00:29:06,320
» Yes.
>> And

322
00:29:04,159 --> 00:29:09,120
» so that so that remains in that fifth
year. I didn't see that, but I guess

323
00:29:07,760 --> 00:29:13,520
it's true.
>> It does. I didn't back that out. The

324
00:29:11,279 --> 00:29:21,120
only thing I backed out was the cost for
the general plan update. So, because

325
00:29:17,520 --> 00:29:25,200
that needs to be completed by 2030
>> and that's 660,000.

326
00:29:23,440 --> 00:29:30,559
» Yes. that's spread over three years
>> and is that an outside or is that uh

327
00:29:28,880 --> 00:29:36,240
personnel benefits?
>> Um it it'd be outside but the we just

328
00:29:34,159 --> 00:29:42,960
that's a kind of plug number for now
because the scope and defining how that

329
00:29:39,840 --> 00:29:49,880
updates going to happen is still being
worked out.

330
00:29:46,000 --> 00:29:49,880
So the um

331
00:29:53,440 --> 00:30:00,320
so none of the 660 is in the fifth year
of the U budget.

332
00:29:58,320 --> 00:30:06,799
» Correct.
So, if you backed out um 150,000 in the

333
00:30:04,559 --> 00:30:11,600
fifth year for the Malard Point
coordinator,

334
00:30:08,960 --> 00:30:17,840
um that might be a number that would be
somewhat comparable to the actual 2526

335
00:30:16,240 --> 00:30:24,720
estimated.
I'm trying to just look for

336
00:30:20,640 --> 00:30:28,399
I wasn't cognizant of this $600,000
one, which we probably want to talk

337
00:30:27,039 --> 00:30:34,080
about a little bit. It's not a small
number. Um but um

338
00:30:32,159 --> 00:30:41,360
I was looking at okay we've got this
Malard point bump and trying to just get

339
00:30:37,919 --> 00:30:50,240
a trend from
25 26 actual which presumably is kind of

340
00:30:44,960 --> 00:30:56,240
a regular number pre that bump. And it
sounds like um if none of that 660 is in

341
00:30:53,840 --> 00:31:01,840
the fifth year and only the 150
coordinator is that if you took 150 out

342
00:30:59,039 --> 00:31:08,080
of the fifth year projection, you could
then compare that to 2526 and instead of

343
00:31:04,880 --> 00:31:12,840
being a 10% annual increase it would be
I don't know what 8% or some number.

344
00:31:13,120 --> 00:31:23,039
» Yes, I I would agree with that. So um
>> so I guess then the question would be um

345
00:31:21,039 --> 00:31:29,919
since we have these assumptions that are
kind of like four and 5% assumptions um

346
00:31:26,640 --> 00:31:35,679
that um
if I haven't done the math on that but

347
00:31:32,960 --> 00:31:38,960
150 out of something is going to be that
might lower it quite a bit actually.

348
00:31:37,279 --> 00:31:42,159
Huh?
Yeah, David,

349
00:31:40,080 --> 00:31:46,720
» there's there's there's also a missing
piece here is that and and and we talked

350
00:31:44,399 --> 00:31:51,200
about this yesterday is that we may want
to

351
00:31:48,480 --> 00:31:55,440
account for special projects like Malor
Points either on its own line or on a

352
00:31:53,120 --> 00:31:58,480
subline in some way because you've got
which I think is high by the way through

353
00:31:56,960 --> 00:32:02,799
that five years 150 for each of those
five years but nonetheless you've got

354
00:32:00,480 --> 00:32:06,480
that in there rolling over those years
but we don't have it we don't have a um

355
00:32:04,640 --> 00:32:07,600
equivalent revenue structure attached to
that

356
00:32:06,880 --> 00:32:12,880
» right
>> at all we have I think $100,000 over a

357
00:32:10,080 --> 00:32:16,399
over a 18-month period. Um, and their
fees arguably with it, road impact fees

358
00:32:14,880 --> 00:32:23,200
and everything else is upwards of a
million dollars. So, we've been hesitant

359
00:32:18,399 --> 00:32:26,559
to um um uh plan for or project permit
revenues without the permit in hand. I

360
00:32:24,799 --> 00:32:31,360
think we only have the 100,000 that um
Rebecca feels comfortable with um to

361
00:32:29,039 --> 00:32:35,200
Helga, which is the current um
demolition site work and city map

362
00:32:33,919 --> 00:32:39,200
potentially the building permit on the
first phase one. uh but we've got the

363
00:32:37,840 --> 00:32:43,360
cost associated with it throughout the
whole plan at full implementation. So

364
00:32:41,200 --> 00:32:49,519
that's a that's a miss I think a little
bit. Um we might want to create a

365
00:32:46,320 --> 00:32:53,120
special project module that looks at
both sides of it and layers onto it

366
00:32:51,279 --> 00:32:57,600
because I think David's right. It's it's
skewing those numbers artificially. Um,

367
00:32:55,679 --> 00:33:01,519
and the the general plan will do that
anyway, but you add on top those those

368
00:32:59,840 --> 00:33:06,080
contractor costs for a special project
like Malard, it's going to skew it even

369
00:33:04,480 --> 00:33:09,679
more so than than it would otherwise do.
So,

370
00:33:06,640 --> 00:33:13,600
» yeah, that's that's important and and
thanks for covering that. I wasn't

371
00:33:11,919 --> 00:33:18,000
really looking at the revenue. I was
just kind of assuming that there's

372
00:33:15,919 --> 00:33:25,039
revenue generated off the project of
course and that somewhere in our uh

373
00:33:21,679 --> 00:33:30,720
excellent team and review that those
revenues were being matched with the um

374
00:33:28,080 --> 00:33:32,559
coordinator and other costs. And so I
was just trying to take

375
00:33:32,159 --> 00:33:38,559
» Yeah.
>> and remove the whole bump. And so

376
00:33:36,799 --> 00:33:44,159
you said you'd tend to agree that if I
took year five and pulled out 150,000, I

377
00:33:42,559 --> 00:33:48,399
could then compare that and I just did
that and it reduces the five-year

378
00:33:46,480 --> 00:33:52,080
increase in planning and building from
59%

379
00:33:50,000 --> 00:33:59,760
to 47%.
So it is close to that 8% um maybe it'd

380
00:33:56,159 --> 00:34:06,559
be 8 and a4%. So I guess then my
question would be why is planning and

381
00:34:02,480 --> 00:34:11,839
building going up 8 and a4% per year
when our underlying benefit assumptions

382
00:34:08,960 --> 00:34:16,079
and so forth or you know costs or colas
are in the four to 5%.

383
00:34:14,720 --> 00:34:22,000
Does that make sense?
>> Well so in the outer years we budgeted

384
00:34:19,359 --> 00:34:27,200
for 3% colas right
>> and then we budgeted for expenditures to

385
00:34:24,720 --> 00:34:33,079
increase by 5%.
So both those numbers are materially

386
00:34:29,200 --> 00:34:33,079
below the 8%.

387
00:34:33,440 --> 00:34:44,320
I'm I'm just taking year five planning
and building which is um 2.11

388
00:34:40,960 --> 00:34:51,599
and I'm taking 150,000 out of that which
gets you to nine whatever it was and

389
00:34:48,240 --> 00:34:59,920
dividing that by the expected current
actual for 2526 which is 1.33

390
00:34:55,919 --> 00:35:03,560
and the difference is 47%.
1.3 1.777

391
00:35:03,839 --> 00:35:12,079
or 26 27 or 25 26
>> 25 26 I'm taking actual what we're doing

392
00:35:10,079 --> 00:35:15,920
today
and comparing it to what we're

393
00:35:13,440 --> 00:35:18,800
projecting five years
>> do you think rather than doing this on

394
00:35:17,200 --> 00:35:23,520
the fly would it be better for Helga to
come back and do that analysis and

395
00:35:20,480 --> 00:35:29,760
» I guess I didn't write my email well and
I sent it just yesterday so I'm I'm

396
00:35:26,000 --> 00:35:33,040
perfectly fine with that it's just Um
I don't no that's fine.

397
00:35:31,440 --> 00:35:36,480
» I think there's a lot going on in that
planning line general plan to things

398
00:35:35,520 --> 00:35:40,960
like that and maybe you got to pull it
out so you can so you can see what what

399
00:35:38,079 --> 00:35:44,000
a normal business as usual um flow would
look like to David's point and because

400
00:35:42,720 --> 00:35:47,440
that that should replicate more of an
80%.

401
00:35:45,200 --> 00:35:50,640
» Well if it is or or identify why it's at
8% and everything else would be lower

402
00:35:48,800 --> 00:35:54,880
than that.
>> Well and and it might be that it's

403
00:35:52,640 --> 00:35:57,760
appropriate. It probably could be. I
just don't I can't reconcile it in my

404
00:35:57,440 --> 00:36:02,560
mind.
>> And those projected years

405
00:36:00,160 --> 00:36:08,320
take into account
the change in compensation based on the

406
00:36:06,000 --> 00:36:16,320
comp study in the two and a half. And so
that's then multiplied by the 3%

407
00:36:13,280 --> 00:36:22,800
each of the year two through five for
salaries and benefits.

408
00:36:19,200 --> 00:36:26,560
» So it's five plus three over five years
every year. So it's cumulative eight

409
00:36:24,960 --> 00:36:29,280
which makes sense to be somewhere in the
40%.

410
00:36:27,599 --> 00:36:34,599
» Right.
>> Right. So when we look at the um

411
00:36:35,920 --> 00:36:46,160
the exhibit that shows uh I forget where
it is that shows the um

412
00:36:41,680 --> 00:36:49,720
assumed uh increases the cola stuff.
Where is it?

413
00:36:49,760 --> 00:36:53,400
Is that in your memo?

414
00:36:53,520 --> 00:37:01,520
thought it was.
>> It is. It's in the

415
00:36:57,440 --> 00:37:08,359
» uh table six in the
>> uh Yeah, I was looking at table 13 on

416
00:37:05,040 --> 00:37:08,359
page 12

417
00:37:14,320 --> 00:37:20,800
expenditure assumptions.
>> Right. So the

418
00:37:19,280 --> 00:37:26,320
» because that actually leads to my other
question that was in the email. So when

419
00:37:22,480 --> 00:37:29,839
we say salaries 333
um

420
00:37:26,800 --> 00:37:35,599
» that's cumulative. So, you know, it
takes 2627's

421
00:37:32,480 --> 00:37:41,680
proposed budget salary and then
multiplies that by 3% and then that new

422
00:37:39,200 --> 00:37:48,960
number is multiplied by
understand that um the 8%

423
00:37:45,520 --> 00:37:55,920
um is the same way 8% each year
cumulative. So, so that's highlighting

424
00:37:53,440 --> 00:38:02,320
my question. the 3% there and and
obviously you've got fringe benefits at

425
00:37:57,680 --> 00:38:09,680
4%. Um other costs at 5%.
But none of those approach eight. So it

426
00:38:04,560 --> 00:38:13,440
sounds like there's a study that is um
the compensation's actually going to go

427
00:38:11,280 --> 00:38:19,119
up more than 3%.
Is that what's happening? Okay. So

428
00:38:15,680 --> 00:38:22,640
enlighten me please.
>> Yeah I can I can comment on that. So we

429
00:38:20,880 --> 00:38:26,880
have a compensation study which was kind
of linked to a classification study as

430
00:38:24,720 --> 00:38:31,040
well. What are people doing here? How
does that compare to other agencies and

431
00:38:29,200 --> 00:38:34,400
you know is it fair to pay them you know
what is a fair salary in terms of the

432
00:38:32,640 --> 00:38:37,760
median market or slightly below the
median market for county

433
00:38:36,320 --> 00:38:42,000
» and a couple of these surrounding
agencies. Um and that work is still

434
00:38:40,560 --> 00:38:47,040
ongoing. We're still in the middle of
negotiations and close sessions with

435
00:38:44,000 --> 00:38:51,839
council. So I can't, you know, talk, you
know, perfectly openly about that right

436
00:38:48,800 --> 00:38:58,320
now, but uh yeah, we for for Helga's
purposes and what we've included in the

437
00:38:53,359 --> 00:39:02,000
budget, um is, you know, a 3% cola on
top of whatever is negotiated. And the

438
00:39:00,240 --> 00:39:06,240
amount that we've contemplated for just
the we can call the true up whatever you

439
00:39:04,480 --> 00:39:10,560
want to call it to reach to the market
goal that we're trying to get to. That

440
00:39:08,000 --> 00:39:15,680
number is
>> 124,000

441
00:39:12,720 --> 00:39:18,920
» in total per per year.
>> The compensation

442
00:39:20,160 --> 00:39:24,800
» so is that it's
>> about 5%.

443
00:39:22,480 --> 00:39:30,079
» Yeah,
>> it's about 5%. Yeah. As a one time.

444
00:39:27,599 --> 00:39:33,280
» Yeah. Yes.
And is that is that that's for non

445
00:39:32,560 --> 00:39:37,680
bargaining?
>> It's it's yeah

446
00:39:35,760 --> 00:39:41,680
» including the bargaining units.
>> Yes.

447
00:39:38,800 --> 00:39:45,920
» Because you'd only change them or you'd
change the bargaining compensation

448
00:39:44,160 --> 00:39:48,560
outside of a collective bargaining
agreement.

449
00:39:46,560 --> 00:39:54,880
» Well, the collect the it comes out
>> the contracts ended will end June 30th,

450
00:39:52,320 --> 00:40:02,200
2026. our current contracts and that's
why we're in negotiation with both the

451
00:39:57,040 --> 00:40:02,200
represented and non-represented staff.

452
00:40:08,400 --> 00:40:15,920
» Well, that get closer. I don't think it
it closes the gap um to to the 8%.

453
00:40:14,400 --> 00:40:20,079
» I mean, it would close it for the first
year. 5 plus three is eight, but I know

454
00:40:18,079 --> 00:40:25,760
you've got pension at four and other at
five. So there's still a little bit um

455
00:40:22,560 --> 00:40:31,760
not as big as um originally because of
two things. One um I didn't uh

456
00:40:28,960 --> 00:40:37,280
understand that 150 was in year five. So
that lowers it from 10 to 8. And then

457
00:40:34,640 --> 00:40:41,839
this one time potential five could be
four, could be six. Who knows where it's

458
00:40:39,680 --> 00:40:46,480
spread across? But that closes it
further. So we're we're we're getting

459
00:40:44,240 --> 00:40:52,320
we're getting closer. I'm satisfied for
the purposes of today's meeting. Um and

460
00:40:49,280 --> 00:40:54,560
maybe you can just dig that and we'll
close that remaining gap.

461
00:40:53,760 --> 00:40:57,920
» Sure,
>> we can do that.

462
00:40:56,000 --> 00:41:02,560
» I the kind of there were two reasons I
was looking at this. One was just as a

463
00:41:00,160 --> 00:41:08,240
general look at what we're projecting
for expenditures and is that you know

464
00:41:06,319 --> 00:41:14,400
within these numbers and so forth. And
the other was to see that um you already

465
00:41:12,079 --> 00:41:18,880
mentioned I think Robert that um or
maybe it was Helga that there wasn't

466
00:41:16,240 --> 00:41:27,040
going to be additional personnel
um uh hired by the city um on an inside

467
00:41:24,240 --> 00:41:33,920
staffing basis for Malard Point, but I
wanted to um sort of just fair it out

468
00:41:30,800 --> 00:41:39,119
that when that ship goes over the
horizon um we're back and it it doesn't

469
00:41:36,960 --> 00:41:42,560
leave any embed added costs that sort of
just perpetuate

470
00:41:40,720 --> 00:41:47,920
» and you know the other thing that's in
there is

471
00:41:44,720 --> 00:41:52,800
that department's portion of the UL
which increased

472
00:41:50,160 --> 00:41:58,079
» for next year. So that's also in that
line item. So that's that was a a a

473
00:41:55,920 --> 00:42:06,560
question I had in the email too because
it's again that same chart on um table

474
00:42:02,480 --> 00:42:13,599
13 where you've got the UL at in the
next two fiscal years at 18 and 15%. And

475
00:42:10,000 --> 00:42:17,680
then it goes negative and I apologize if
I research this I could probably answer

476
00:42:15,599 --> 00:42:25,280
the question myself but it's easier to
ask you. Um is are those numbers um

477
00:42:20,560 --> 00:42:31,440
pulled out of um numbers from Kalpers?
>> Those numbers come from the June 30th,

478
00:42:28,240 --> 00:42:35,200
2024 valuation report and it's their
projections for the U for both the

479
00:42:33,680 --> 00:42:38,800
safety and miscellaneous.
>> Perfect. I I thought so and

480
00:42:37,680 --> 00:42:42,319
» and as you know that will shift
dramatically when we get the budget next

481
00:42:40,400 --> 00:42:44,800
year. Yeah,
as always,

482
00:42:43,359 --> 00:42:48,400
» David, Dave, you might want to when you
when you get a sec, um, look at you're

483
00:42:46,880 --> 00:42:52,960
looking at the the the five-year
projection, but look at 26 27 to sorry,

484
00:42:50,880 --> 00:42:55,280
256 to 26 27,
>> right?

485
00:42:53,280 --> 00:42:58,720
» Um, that's the biggest jump. That's
basically it bumps up. There's a 20%

486
00:42:57,200 --> 00:43:01,599
bump in operating cost and then that
flows a little more more flatly over

487
00:43:00,560 --> 00:43:05,839
that 5year period of time.
>> Well, I suspect that the 26 27 is what

488
00:43:04,640 --> 00:43:08,800
includes that 5%.
>> That's that's what that's the big jump

489
00:43:08,240 --> 00:43:13,520
right there.
>> Yeah. Yeah.

490
00:43:10,480 --> 00:43:18,720
Thank you.
Um

491
00:43:16,079 --> 00:43:25,200
so that answers several of them. The
other couple questions, um one on this

492
00:43:22,640 --> 00:43:28,200
660,000
um

493
00:43:30,160 --> 00:43:42,720
when is that expected to be an expense?
>> So I started budgeting for it in 2728.

494
00:43:38,720 --> 00:43:48,599
» Okay. So, um, and then I, like I said,
allocated it over the following three

495
00:43:45,200 --> 00:43:48,599
fiscal years,

496
00:43:49,599 --> 00:43:56,560
» the general plan update.
>> Yeah. I mean, we during our annual

497
00:43:55,359 --> 00:44:02,160
retreat, we had a pretty long
conversation about the general plan

498
00:43:58,960 --> 00:44:05,280
update and what that might look like and
whether we needed a full plan update and

499
00:44:03,760 --> 00:44:10,560
whether we or whether we just wanted to
keep this as a um as a live document

500
00:44:08,800 --> 00:44:16,319
that we just update over time rather
than just these very expensive concrete

501
00:44:13,280 --> 00:44:21,520
updates every 20 years. And so I believe
Peter, you and Kevin are working on that

502
00:44:19,359 --> 00:44:24,720
right now to see whether we can
essentially do a lot of it inhouse to

503
00:44:23,359 --> 00:44:30,319
get those costs down.
>> Yeah, we're trying to uh as Sally talked

504
00:44:27,040 --> 00:44:33,440
about in a sense take off the the 2030
designation. I mean, that's the simple

505
00:44:32,079 --> 00:44:37,520
way of describing it, but having it
being a just a general plan for the city

506
00:44:34,960 --> 00:44:41,839
that gets updated from time to time with
um statemandated update requirements as

507
00:44:39,599 --> 00:44:45,599
well as timeliness updates based on
community changes, housing requirement

508
00:44:43,680 --> 00:44:49,520
changes, and so forth. So, we're in the
process right now of going through

509
00:44:47,680 --> 00:44:52,319
identifying sort of in a matrix format
what are the what are the mandated

510
00:44:50,800 --> 00:44:55,599
updates we need to do so we can break
down what are um perhaps some more

511
00:44:54,079 --> 00:44:59,839
administrative straightforward changes
we can make. um trying to avoid what

512
00:44:58,400 --> 00:45:04,640
we're what we're budgeting for here,
which is a in Kevin's words, a boiling

513
00:45:02,400 --> 00:45:09,200
the water type of all hands- on deck
general plan um rewrite, which would

514
00:45:07,520 --> 00:45:12,319
probably cost more than that over the
long term, having recently completed our

515
00:45:10,800 --> 00:45:17,520
housing element, which is only one one
part of that broader plan. Uh so we are

516
00:45:14,880 --> 00:45:22,640
looking at it as a incremental update
process and tasking future councils with

517
00:45:20,720 --> 00:45:27,760
updating it as needed as opposed to give
it a a termination date as it currently

518
00:45:24,800 --> 00:45:30,480
has right now which will probably have
positive benefits for that number but I

519
00:45:29,200 --> 00:45:34,359
think it's wise to keep that number in
there for that period of time.

520
00:45:38,079 --> 00:45:47,599
» Thank you. That helps a lot. Um, and
obviously we'll hear more about that

521
00:45:42,880 --> 00:45:51,680
when it gets to the current year budget,
>> right? And we we should know more

522
00:45:49,680 --> 00:45:53,359
probably by next year, I would think.
>> Yeah.

523
00:45:52,240 --> 00:45:59,119
» So,
>> I think the last question I had in that

524
00:45:54,960 --> 00:46:05,119
email was on the climate action plan.
And I know um

525
00:46:02,160 --> 00:46:12,160
I'd written this before uh John's email
came out um and I noted he mentioned um

526
00:46:10,000 --> 00:46:19,920
a number of different sort of studies
and um you know you can study a lot of

527
00:46:15,920 --> 00:46:25,760
things and uh I had just identified the
client action plan because um I didn't

528
00:46:22,880 --> 00:46:32,400
know what it was. Um
it was budgeted last year for 25,000. Um

529
00:46:29,520 --> 00:46:37,119
I guess and nothing took place then and
now it's budgeted for 50,000.

530
00:46:35,119 --> 00:46:41,200
And so I don't want to spend a lot of
time on this, but um then you'll

531
00:46:39,839 --> 00:46:47,520
probably speak to some of John's
questions later, but uh what what is the

532
00:46:44,800 --> 00:46:54,640
client climate action plan? Is it
required? Um,

533
00:46:50,400 --> 00:46:58,160
and is it u going to be $50,000 and then
we're done with it for some period of

534
00:46:56,720 --> 00:47:04,240
time?
>> Yeah, so the climate action plan uh is a

535
00:47:01,359 --> 00:47:09,599
part of the city's general plan and it
has to be updated from time to time.

536
00:47:06,079 --> 00:47:13,599
There's uh specific state laws that have
been enacted recently to require you to

537
00:47:11,440 --> 00:47:19,119
meet certain greenhouse gas emission
goals by again I think it's 2030. And to

538
00:47:17,119 --> 00:47:23,119
get there, the climate action plan is
really a roadmap of how the city can do

539
00:47:20,960 --> 00:47:26,880
that. And just like the housing element,
there's a ton of policies and programs

540
00:47:25,040 --> 00:47:32,079
that have been contemplated in the plan
that need to be implemented. Um, so

541
00:47:29,520 --> 00:47:36,319
there's an opportunity other you know,
Tibrron hired somebody on a well,

542
00:47:34,960 --> 00:47:40,240
they're sharing the costs with Mil
Valley on a for a full-time position. We

543
00:47:38,800 --> 00:47:44,800
chose not to participate in that just
because we didn't feel like it was

544
00:47:41,520 --> 00:47:49,280
needed here. Um, but we do think for a
small effort, you know, roughly 25 to

545
00:47:46,960 --> 00:47:53,839
$50,000, we can have a consultant do the
line share of that work for us and put

546
00:47:51,760 --> 00:47:58,640
those programs in place so that we meet
the requirements. Uh, you know, and uh,

547
00:47:56,960 --> 00:48:04,160
you know, we don't have have compliant
or or uh, you know, an action plan that

548
00:48:02,480 --> 00:48:08,480
has, you know, no action on it. So,
we're trying to get there.

549
00:48:05,440 --> 00:48:13,440
» So, thank you. U, so is it primarily
around emissions?

550
00:48:11,760 --> 00:48:17,040
to like our power plant and all those
kinds of

551
00:48:14,400 --> 00:48:21,200
» and efficiency you know you know um
renewable sources you know

552
00:48:19,359 --> 00:48:26,160
» but but David I agree with so the last
climate action plan we did was done by

553
00:48:22,720 --> 00:48:30,880
Nancy Kimnitzer for free so I'm just I
was surprised by that number as well I

554
00:48:28,079 --> 00:48:35,440
don't think that we'll necessarily need
that number but things are potentially

555
00:48:33,119 --> 00:48:39,680
getting a little bit more
uh complicated just because the way that

556
00:48:37,440 --> 00:48:42,559
we measure emissions in California is
moving from an annual measure to an

557
00:48:41,599 --> 00:48:44,720
hourly measure,
>> right?

558
00:48:42,960 --> 00:48:50,400
» And because we're all contracting with
MCE, which is very clean on a annual

559
00:48:48,319 --> 00:48:53,680
basis, but not an hourly basis, things
might change for cities as well in terms

560
00:48:52,240 --> 00:48:55,680
of having to do other stuff.
>> Yeah.

561
00:48:54,000 --> 00:48:59,280
» Because we always relied on them. But
but as I say, Nancy had put together a

562
00:48:57,920 --> 00:49:04,559
working group last time and they did
that, I think, with no expense, right?

563
00:49:01,839 --> 00:49:07,359
» And so I I think we should aim to do
something similar next time because

564
00:49:05,760 --> 00:49:11,359
that's feels like a big number.
>> And and to be clear, I'm all for climate

565
00:49:09,920 --> 00:49:17,359
action.
um just not so much for

566
00:49:14,640 --> 00:49:23,119
spending money and uh I mean maybe we
should do an EIR on the impact of doing

567
00:49:20,319 --> 00:49:26,960
a client action plan, but
>> I thought the um I thought the 50 and

568
00:49:24,800 --> 00:49:31,280
the and the 150 for uh the housing
element implementation were on

569
00:49:28,559 --> 00:49:34,559
implementation, not so much
reworking the plans themselves.

570
00:49:32,720 --> 00:49:39,599
» Yeah, that's right. the the plan. I I'm
sure that as part of this evaluation and

571
00:49:37,359 --> 00:49:44,079
implementation, there may be some parts
of the plan that need to be adapted and

572
00:49:41,839 --> 00:49:49,280
updated. Uh but for the most part, we're
talking about implementation. Yeah.

573
00:49:47,119 --> 00:49:52,720
» Thank you.
>> How do you implement a climate action

574
00:49:50,800 --> 00:49:57,520
plan?
>> Uh yeah. Well, like I said, just like

575
00:49:55,040 --> 00:50:00,640
the housing element, there's 15 or 20
different programs you have to put in

576
00:49:59,119 --> 00:50:04,480
place. Um,
>> I mean, um, Tony talked about a couple

577
00:50:02,319 --> 00:50:09,520
of them at the at the retreat. Um, put
putting in, um, um, uh, high efficiency

578
00:50:07,760 --> 00:50:13,359
lighting around the city for 80 grand,
you know, doing doing, um, more

579
00:50:11,440 --> 00:50:15,920
efficient, um, you know, charging
systems, you know, having more charging

580
00:50:14,640 --> 00:50:20,960
systems, things along those lines, which
are ways for the city to overall lower

581
00:50:18,160 --> 00:50:23,599
its its greenhouse gas emissions.
You know, I think they all need to be

582
00:50:22,160 --> 00:50:27,680
evaluated, like we talked about in the
in the in the meeting, on a on a value

583
00:50:25,760 --> 00:50:31,680
basis, not just for the sake of doing
it. Um

584
00:50:30,319 --> 00:50:34,720
the housing island stuff is a little bit
more straightforward. You know, you have

585
00:50:32,880 --> 00:50:36,960
you have specific programs for specific
policies that you have to implement.

586
00:50:36,079 --> 00:50:42,319
Again, I don't think we're going to
spend anywhere near that money, but you

587
00:50:39,040 --> 00:50:46,559
have to you have to um be be deliberate.
HCD and whatever state a agency is

588
00:50:45,200 --> 00:50:50,240
looking at the climate action plans,
they do watch your efforts from an from

589
00:50:48,480 --> 00:50:54,960
a from a implementation perspective. So,
we certainly are going forward with

590
00:50:52,880 --> 00:51:01,680
that. Certainly with our um housing
updates, we are reporting our housing

591
00:50:57,440 --> 00:51:07,480
updates and pivoting and um showing them
as results of the plans and the policies

592
00:51:03,760 --> 00:51:07,480
that we put in place.

593
00:51:09,920 --> 00:51:16,880
» Okay. Um Helga, what I think we're going
to do with respect to John Wilton's

594
00:51:14,480 --> 00:51:22,720
questions, which we all got, why don't I
just uh take them one at a time and ask

595
00:51:19,280 --> 00:51:27,520
you and let you respond to them. um his
overall concern was with the growth in

596
00:51:24,720 --> 00:51:32,960
expenditures. He then uh had six bullet
points of specific items that hopefully

597
00:51:30,079 --> 00:51:39,200
you can respond to today, Helga.
>> The first was that he questioned

598
00:51:36,319 --> 00:51:44,400
why does the city budget staff costs at
the top of the salary range for each

599
00:51:41,359 --> 00:51:50,319
position when we know what our actual
staff's costs are.

600
00:51:47,920 --> 00:51:56,400
So, we budget that way because part of
it is that it's past practice and the

601
00:51:53,839 --> 00:52:02,640
other part is that all but three of our
staff are at the top step of the salary

602
00:51:59,200 --> 00:52:08,559
range. So, it it makes sense to budget
for them and it accounts for any

603
00:52:05,119 --> 00:52:14,319
increases during the fiscal year due to
merit increases. So,

604
00:52:10,960 --> 00:52:19,760
» okay. Second question is, is the
$235,000

605
00:52:16,400 --> 00:52:25,680
the annual cost of employing a temporary
police officer

606
00:52:21,839 --> 00:52:32,079
and do we need 30,000 study to evaluate
police department staffing?

607
00:52:28,160 --> 00:52:41,440
Um the 235 is the salary and benefits
for a police officer and it reflects the

608
00:52:37,520 --> 00:52:46,160
we budget for the the benefits the
health insurance benefits at the family

609
00:52:43,680 --> 00:52:51,760
rate because we don't know if the
person's single but that way we have it

610
00:52:48,160 --> 00:52:58,720
budgeted for the higher rate and the
also the PD has additional pays like I

611
00:52:55,359 --> 00:53:03,599
mentioned in the PowerPoint for
uh education incentives, shift

612
00:53:00,800 --> 00:53:10,800
differential, and like holiday pay that
is on top of their base pay so that

613
00:53:07,200 --> 00:53:16,000
other positions don't have.
>> Oh, and the 30,000 police study, I'll

614
00:53:13,520 --> 00:53:21,200
let Robert answer that.
>> So, the the 30,000 and again, I don't

615
00:53:18,640 --> 00:53:27,760
think we will be spending that amount.
Um but it is earmarked for a study to

616
00:53:23,839 --> 00:53:31,440
look into what would um what would they
you know ideally what are the options

617
00:53:29,760 --> 00:53:35,599
for the city when it comes to policing
in Belvadier. Um just internally with

618
00:53:33,920 --> 00:53:41,119
our own department. Do we have the best
structure right now in terms of a chief

619
00:53:38,880 --> 00:53:44,880
and sergeants and officers and how many
officers is appropriate given the size

620
00:53:42,720 --> 00:53:49,760
of our city. um you know some of that
work we can do ourselves but it would be

621
00:53:47,040 --> 00:53:53,359
great to have an outside opinion who you
know is not just looking focused in

622
00:53:51,280 --> 00:53:56,880
Marin County but sees a broader picture
of here's traditional policing and

623
00:53:54,960 --> 00:54:02,720
here's how you can envision that. So
that's kind of part one. Part two is a a

624
00:54:00,079 --> 00:54:06,559
more broad view looking at what would
you know policing on the peninsula look

625
00:54:04,800 --> 00:54:11,040
like if we had more of a combined
department or perhaps even the JPA or

626
00:54:09,040 --> 00:54:16,079
something like that. um similar to how
the Ton fire pro protection district

627
00:54:13,839 --> 00:54:20,400
operates and that's a bigger analysis
and I think a line share of the of the

628
00:54:18,240 --> 00:54:24,480
cost is probably seated in that versus
uh you know the first part I mentioned

629
00:54:22,720 --> 00:54:30,720
and Peter or Sally if you want to add to
that feel free. Yeah, part of our our

630
00:54:27,200 --> 00:54:35,680
our um work last couple years with our
police chief has been focusing on um the

631
00:54:33,760 --> 00:54:38,720
resiliency and the redundancy within the
department, making sure that they have

632
00:54:36,800 --> 00:54:43,359
the depth and the opportunity to um
actually service the community in the

633
00:54:40,160 --> 00:54:48,480
247 means that they um are asked to do
so. Um policing is more challenging

634
00:54:45,920 --> 00:54:55,280
other positions relative to to um
outages, time off, disability training.

635
00:54:51,280 --> 00:55:01,200
So this this was an interim step for a I
think two or three year bubble to um

636
00:54:57,920 --> 00:55:04,960
bring back the uh additional officer so
that they can

637
00:55:02,800 --> 00:55:08,800
» meet the needs of the community um from
a from a redundancy and from a

638
00:55:06,640 --> 00:55:14,160
resilience perspective without relying
on an outside agency which has been um

639
00:55:11,280 --> 00:55:20,319
considered and um found lacking in in
many degrees at this point in time. um

640
00:55:16,960 --> 00:55:24,079
while we as Robert talked about
think about the department from a a

641
00:55:22,160 --> 00:55:29,920
longer term perspective, a succession
planning perspective and reimagining it

642
00:55:26,480 --> 00:55:34,160
from the from from the sense of do we
continue with the same model that we've

643
00:55:31,520 --> 00:55:38,079
had in the past, a chief and sergeants
and officers as Robert said, or do we

644
00:55:36,240 --> 00:55:41,680
think about it differently? Maybe maybe
think about it as a captaincy as the as

645
00:55:40,079 --> 00:55:45,119
the top person here reporting to a chief
in another jurisdiction or even have the

646
00:55:43,760 --> 00:55:49,680
city manager act as a chief
responsibilities in some fashion. um as

647
00:55:47,359 --> 00:55:55,280
a way to get more of an oper operational
department um as as a as a as a

648
00:55:52,480 --> 00:55:59,119
possibility potential um but looking for
an outside source to to validate that to

649
00:55:57,599 --> 00:56:04,319
some degree because what we're relying
on now um as expertise as our police

650
00:56:02,000 --> 00:56:07,119
department is they have expertise in
Beverly policing and we want to look at

651
00:56:05,920 --> 00:56:10,079
it from a little bit more from an
outside perspective as well and like

652
00:56:08,960 --> 00:56:14,160
Robert said we're not looking at
spending a ton of money there but

653
00:56:11,280 --> 00:56:18,559
looking at um some objective check on
how we're planning our staffing going

654
00:56:16,720 --> 00:56:23,280
forward.
>> I think what Peter isn't saying out loud

655
00:56:20,400 --> 00:56:28,559
there is that we uh we don't have a
working chief.

656
00:56:25,200 --> 00:56:33,839
And so part of that examination is can
we with a different model have only six

657
00:56:30,720 --> 00:56:37,920
headcount rather than seven.
>> And to clarify working chief meaning

658
00:56:35,680 --> 00:56:43,280
he's his function here is primarily
administrative. You know 99% of that he

659
00:56:40,400 --> 00:56:47,040
will fill in for shifts as needed. But
um you know again is that the best model

660
00:56:45,200 --> 00:56:53,520
for us as Peter said we start looking at
succession planning.

661
00:56:49,760 --> 00:57:01,119
» Okay. Uh John's next question was ditto
on the 150,000 for a consultant on

662
00:56:57,040 --> 00:57:09,040
housing element goals and 15,000 for
fire annexation study. So, our housing

663
00:57:04,960 --> 00:57:15,160
element was certified this past February
and so staff are working on organizing

664
00:57:15,200 --> 00:57:23,760
on organizing the programs which will
need consultant support. Not all of the

665
00:57:21,839 --> 00:57:30,880
policies and programs will need that.
Some will be done in-house. Um, so like

666
00:57:27,520 --> 00:57:37,200
Peter and Robert have said, maybe not
all the 150,000 will be needed, but it's

667
00:57:34,000 --> 00:57:42,480
just kind of earmarked for that. Um, and
it's just the implementation of the

668
00:57:39,359 --> 00:57:49,599
certified housing element.
And then the 15,000 for the fire

669
00:57:45,119 --> 00:57:57,200
annexation study is for ongoing costs
related to the evaluation of the city's

670
00:57:53,200 --> 00:58:04,000
options for uh either fire annexation
into the fire district or a revised

671
00:58:00,240 --> 00:58:07,280
contract. So
>> can I add just one thing there just in

672
00:58:05,599 --> 00:58:11,440
terms of why sometimes money is well
spent which is that one of the things

673
00:58:08,960 --> 00:58:16,319
that we have discovered through these
discussions with the fire district is

674
00:58:13,760 --> 00:58:19,680
that the GAN limit override vote that
we've been taking to the voters every

675
00:58:17,760 --> 00:58:24,760
four years we will not need in the
future and so that saves money there.

676
00:58:25,280 --> 00:58:32,240
Uh this next question maybe was covered
by David's comment 50,000 for climate

677
00:58:31,119 --> 00:58:37,119
action plan.
>> And so that's the implementation as we

678
00:58:34,880 --> 00:58:41,760
spoke about about the climate action
plan.

679
00:58:37,839 --> 00:58:46,720
» Okay. Uh his next bullet point was
questioning the 100,000 for the

680
00:58:44,160 --> 00:58:52,640
insurance legal fund.
>> So this is just the transfer to

681
00:58:50,799 --> 00:59:01,760
the insurance legal fund. We're
estimating to spend 200,000 in ongoing

682
00:58:57,280 --> 00:59:07,280
um uninsured legal expenses next year,
but we're only planning to transfer a

683
00:59:03,920 --> 00:59:14,000
100,000. And that will bring the balance
in that insurance and legal reserve fund

684
00:59:10,480 --> 00:59:20,599
to 250,000 which is the minimum required
balance per the policy instead of

685
00:59:16,559 --> 00:59:20,599
keeping it at the 350,000.

686
00:59:22,079 --> 00:59:31,119
Uh and then
John the last point says that he doesn't

687
00:59:28,559 --> 00:59:36,240
understand why pension costs increase so
much

688
00:59:32,720 --> 00:59:40,880
24% including health insurance each year
even though we created an additional

689
00:59:38,319 --> 00:59:44,200
fund to meet our unfunded liabilities
over time.

690
00:59:48,319 --> 00:59:51,799
That's the U

691
00:59:55,680 --> 00:59:59,599
this year.
>> Yes. You have your normal cost rate and

692
00:59:57,599 --> 01:00:04,480
then you you have your required UL
payment and that depends on market

693
01:00:01,599 --> 01:00:09,839
performance. It's as simple as that. And
so the year that we're the contribution

694
01:00:07,280 --> 01:00:13,440
relates to was a year which was a bad
year for financial markets because it

695
01:00:11,359 --> 01:00:16,400
was 2023
2022

696
01:00:15,200 --> 01:00:19,440
and 2023.
>> Yeah.

697
01:00:17,760 --> 01:00:24,000
So the numbers will shift again but for
for this year that's what's causing that

698
01:00:22,400 --> 01:00:28,559
jump along with more employees
presumably in terms of the normal cost

699
01:00:26,640 --> 01:00:34,880
rate.
Uh yes the normal cost rate does reflect

700
01:00:31,280 --> 01:00:42,480
the addition of the one and a half
police officer positions. So

701
01:00:39,680 --> 01:00:47,760
and then it is determined by Kalpers the
amount we pay each month. Yeah.

702
01:00:45,440 --> 01:00:54,319
» Okay. Uh I think that covered the item
that John had. Uh questions other

703
01:00:50,400 --> 01:00:56,960
questions from committee members
comments.

704
01:00:55,599 --> 01:01:01,280
» I have one question actually. How you
just said that we you anticipating

705
01:00:58,400 --> 01:01:07,839
spending 200,000 on legal and insurance
claims in 27.

706
01:01:05,280 --> 01:01:12,960
That seems quite a high number given
that our CTL problems are somewhat

707
01:01:10,720 --> 01:01:17,839
behind us. What other risks you
anticipating there?

708
01:01:14,240 --> 01:01:22,960
» Um, there's also a human resource
related issue that we're working on and

709
01:01:20,720 --> 01:01:28,000
» that will continue into 27.
>> We anticipate it. Yes.

710
01:01:24,559 --> 01:01:33,839
» Okay. Thank you.
>> Okay. Um, if there no other comments

711
01:01:31,760 --> 01:01:38,720
from the committee, uh, are there any
members of the public on Zoom? All

712
01:01:36,319 --> 01:01:45,680
right. Um, if there's no other questions
or comments, I assume uh we should

713
01:01:41,760 --> 01:01:50,720
entertain a motion to uh recommend
the uh preliminary operating capital

714
01:01:49,040 --> 01:01:52,640
budget to the city council. Is that
correct, Helga?

715
01:01:51,599 --> 01:01:58,680
» That's correct.
>> Can I get such a motion and a second? So

716
01:01:55,680 --> 01:01:58,680
moved.

717
01:01:59,280 --> 01:02:04,799
» Is there a second?
>> You can.

718
01:02:03,040 --> 01:02:09,520
» Well, I can if you want to. All right. I
second.

719
01:02:07,119 --> 01:02:12,559
Um, roll call.
>> Chair McKascal,

720
01:02:10,960 --> 01:02:14,079
» yes.
>> Patrick Federer,

721
01:02:13,680 --> 01:02:16,799
» yes.
>> And David Walker,

722
01:02:15,280 --> 01:02:23,920
» I.
>> That passes unanimously.

723
01:02:20,160 --> 01:02:28,160
» Thank you, Helga. Uh, the last item on
the agenda for our meeting today is a

724
01:02:26,000 --> 01:02:32,920
discussion in costal action establishing
an ad hoc pension review committee.

725
01:02:34,000 --> 01:02:41,119
» Thank you, chair. Uh the finance
committee last conducted a pension

726
01:02:38,079 --> 01:02:45,440
funding review in December of 2023.
Consistent with the city's policy to

727
01:02:43,280 --> 01:02:50,160
review the strategy at least every 5
years. And based on council direction

728
01:02:47,839 --> 01:02:55,440
from the retreat, we plan to bring an
update to council in December of 2026.

729
01:02:53,760 --> 01:03:02,240
To support that effort, we are
recommending the committee establish an

730
01:02:58,960 --> 01:03:07,359
ad hoc pension funding committee today
to begin reviewing pensions this fall

731
01:03:04,559 --> 01:03:11,799
once the latest Kalpers valuation report
is released later in August.

732
01:03:12,640 --> 01:03:17,839
So I proide a bit more context as well.
So at the annual retreat, there were

733
01:03:15,599 --> 01:03:21,920
some questions from another council
member about the merits of transferring

734
01:03:19,599 --> 01:03:27,680
some of the 115 and paying off some of
the the KPA's UAL. And so that combined

735
01:03:26,000 --> 01:03:31,839
with that request with three years since
the last assessment. So, it felt like it

736
01:03:30,400 --> 01:03:37,039
would be a good time to do that now so
that we can report back to the council

737
01:03:34,640 --> 01:03:42,480
um what the recommendations are both in
relation to whether the 300,000 is still

738
01:03:40,400 --> 01:03:48,079
appropriate and whether the pros and
cons of putting money pulling money out

739
01:03:44,400 --> 01:03:52,640
of the 115 and putting it into Kalpers
because obviously Kalpers on a long-term

740
01:03:50,559 --> 01:03:55,440
basis outperforms because it takes more
risk. But obviously you've already

741
01:03:54,000 --> 01:04:00,559
talked about the benefits of keeping
money in a 115.

742
01:03:58,319 --> 01:04:04,880
» And is the proposal that this would be a
committee created by this finance

743
01:04:02,480 --> 01:04:09,520
committee or by the city council?
>> By this finance committee?

744
01:04:06,319 --> 01:04:11,520
» By this. Okay. So uh meaning we would uh
appoint members.

745
01:04:10,960 --> 01:04:14,880
» Yes.
>> And are there any recommendations,

746
01:04:14,000 --> 01:04:21,520
Sally?
>> David's looking in the wrong direction.

747
01:04:18,559 --> 01:04:25,760
David and I worked on this last time and
I think Will might be interested in

748
01:04:23,680 --> 01:04:31,799
participating as well. So, if you're up
for it,

749
01:04:26,640 --> 01:04:31,799
» I would. I'm fine. Yes.

750
01:04:32,480 --> 01:04:41,680
» And how many? Just the two of you.
>> I'm sorry. Who was

751
01:04:38,240 --> 01:04:48,039
» So, Will, David, sorry. Yep.
>> Okay. Uh, do we need a a motion for

752
01:04:45,039 --> 01:04:48,039
that?

753
01:04:50,799 --> 01:04:56,720
Not today.
>> Not not today.

754
01:04:53,119 --> 01:05:01,680
» Okay. All right. So, um uh I will assume
the committee is in agreement with that

755
01:04:59,039 --> 01:05:08,160
hearing. No objections.
And at that point, uh is there any other

756
01:05:05,280 --> 01:05:10,640
new business to be brought before us
today?

757
01:05:08,880 --> 01:05:15,599
» I do have one item.
>> Okay. So, um, I wanted to bring to the

758
01:05:13,280 --> 01:05:22,480
committee's attention a new requirement
under Senate Bill 852 that was signed

759
01:05:19,039 --> 01:05:28,319
into law in October of 2025 that
beginning in 2026, public officials who

760
01:05:25,599 --> 01:05:33,200
manage public investments, including s
certain board, commissions, and

761
01:05:30,240 --> 01:05:40,480
committee members will be required to
electronically file a form 700 statement

762
01:05:36,400 --> 01:05:46,000
of economic interest with the FPPC.
This form will be due annually on by

763
01:05:43,039 --> 01:05:49,000
April 1st. This change to the finance
committee.

764
01:05:49,119 --> 01:05:58,880
Um, so this does affect the finance
committee members since they

765
01:05:55,440 --> 01:06:04,400
um have input into the investments and
so this change was presented to the city

766
01:06:01,760 --> 01:06:10,079
council at its April 13th meeting
amending the administrative policy

767
01:06:06,960 --> 01:06:15,440
manual section six on committees,
commissions, and boards to reflect this

768
01:06:12,240 --> 01:06:19,760
change in state law. and our city clerk
will be reaching out to the members of

769
01:06:18,240 --> 01:06:24,880
the committee with additional
information on filing the form 700.

770
01:06:23,200 --> 01:06:28,160
» And for this committee, the first form
will have to be filed by next April 1st

771
01:06:27,359 --> 01:06:33,599
or
>> no. Um, she'll be sending out the

772
01:06:30,720 --> 01:06:37,520
information in the next week or two. And
so, um, you need to file it as soon as

773
01:06:36,559 --> 01:06:41,760
possible.
>> Got it. Okay. Any questions on that?

774
01:06:39,599 --> 01:06:47,760
» Yeah, I have a question. Um, so this is
a state requirement.

775
01:06:43,119 --> 01:06:52,720
» Yes. And uh correct me if I'm wrong, but
this committee makes recommendations and

776
01:06:50,559 --> 01:06:59,760
doesn't actually take those actions. It
makes recommendations to the city

777
01:06:54,559 --> 01:07:06,240
council that then takes the action. So I
would think um we're studying things but

778
01:07:04,000 --> 01:07:12,319
we're not taking the actions to manage
them.

779
01:07:08,400 --> 01:07:17,359
Has that uh aspect been addressed? Um it
was the recommendation of our city

780
01:07:14,480 --> 01:07:22,240
attorney based on the new law because
the new law states that uh management of

781
01:07:20,480 --> 01:07:27,520
public investments means the
non-ministerial functions of directing

782
01:07:24,960 --> 01:07:32,079
the investment of public monies,
formulating or approving investment

783
01:07:29,760 --> 01:07:37,520
policies, approving or establishing
guidelines for asset allocation or

784
01:07:34,880 --> 01:07:43,760
approving investment transactions.
>> So I don't think we do any of that. Um I

785
01:07:40,480 --> 01:07:50,400
mean non-ministerial means fiduciary or
discretionary and it I I heard in that

786
01:07:46,799 --> 01:07:54,079
it says taking actions and um
>> we can't do that.

787
01:07:52,559 --> 01:07:58,160
» My understanding of the law from talking
with the city attorney on this is that

788
01:07:55,760 --> 01:08:02,960
it's any group who makes or participates
in making governmental decisions. So in

789
01:08:00,960 --> 01:08:07,680
this case, you know, we're developing a
recommendation even though the action is

790
01:08:04,480 --> 01:08:13,760
done by city council. you're you're
providing insight into policy which then

791
01:08:10,160 --> 01:08:17,440
is a recommendation. So
air on the side of caution I guess is

792
01:08:15,520 --> 01:08:21,279
what our is what our uh
>> city attorney said about filing.

793
01:08:19,759 --> 01:08:25,839
» I guess it begs the question how
difficult is the form we're each asked

794
01:08:23,440 --> 01:08:29,040
to fill out a 10page financial
statement. Maybe we would like our city

795
01:08:27,600 --> 01:08:32,319
attorney to reconsider.
>> It's not your economic interest. It's

796
01:08:30,719 --> 01:08:34,960
your it's your economic interest in
things that that might conflict with

797
01:08:33,520 --> 01:08:38,080
your activities.
>> Correct. Right.

798
01:08:36,640 --> 01:08:40,880
» So, filling out the form should be
fairly easy.

799
01:08:38,799 --> 01:08:42,960
» It it you have to do it online and it
takes literally two minutes.

800
01:08:42,560 --> 01:08:48,640
» Okay.
>> Um, as long as you read it correctly.

801
01:08:47,199 --> 01:08:51,359
» Do you have a different You've looked at
the statement.

802
01:08:50,000 --> 01:08:54,480
» I haven't looked at anything. This is
the first I've heard of it. That's why

803
01:08:53,040 --> 01:08:58,159
I'm asking the question. Do you want to
just send me the link for that

804
01:08:56,000 --> 01:09:02,480
information or Well, I guess I can wait
until the clerk and then I'll raise

805
01:08:59,600 --> 01:09:05,679
questions at that point if I have any.
>> Right. And she'll be sending that out.

806
01:09:04,560 --> 01:09:10,480
So,
Okay. All right.

807
01:09:07,440 --> 01:09:15,440
» Um, one of the thing that we that came
up in relation to looking at um this

808
01:09:13,600 --> 01:09:23,679
policy for the finance committee was
that we our charter says that the uh

809
01:09:19,759 --> 01:09:28,960
chair of the finance committee should be
three years. Um we've actually reduced

810
01:09:27,199 --> 01:09:31,759
it to two at the council meeting.
Correct. because to make it more

811
01:09:30,159 --> 01:09:35,839
consistent with other
>> committees and so we were and also to

812
01:09:34,239 --> 01:09:39,759
introduce a vice chair which we should
have been doing and we haven't been

813
01:09:37,199 --> 01:09:44,239
doing so at the November meeting we were
hoping to do a rotation of those two

814
01:09:42,719 --> 01:09:47,239
positions
>> great

815
01:09:51,120 --> 01:09:58,239
okay there's no other new business um
>> that's all I had

816
01:09:55,360 --> 01:10:00,239
» okay um I believe we're adjourned thank
you everyone particular particularly.

817
01:09:59,360 --> 01:10:04,480
Thank you, Helga.
>> Yes. Thank you, Helga.

818
01:10:01,760 --> 01:10:08,040
» Thanks, everybody.
Have a great day.