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Okay, good evening, everybody. I wanted to welcome everyone to our special city council meeting. Today is May 13th, 2025. Call this meeting to order. You're probably noticing, well, I guess I was going to say you're noticing us without ties on, but I guess everyone has a tie except for me and councilmember Sirep. But I was going to say this was like a serious work session on budget that tie is not required.

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but I guess Ty is required, so I'll let that go.

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How about that, Councilmember Sirep?

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With that said, Councilmember Sirep, could you lead us in the Pledge of Allegiance, please?

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Please rise if you're able.

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Thank you.

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Madam City Clerk, if you can please take the roll.

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Thank you, Mr. Mayor.

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Councilmember Andrews.

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Present.

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Councilmember Bonilla, Jr.

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Present.

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Councilmember Goldstein.

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Present.

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Councilmember Roach.

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Present.

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Council Member Sir Menu, Mayor Selenius.

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Present, thank you.

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Next I wanted to open up for public comments since we have one item on the agenda tonight.

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And it is a work session.

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Tonight's public comments is limited to items only on the agenda.

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And I don't have any cards with me, and let me just check here online.

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I don't see any hands raised online, so I will close public comment, and I will move on to our work session.

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Today's work session is the City Council Budget Work Session Review proposed fiscal year 2025, 2026 operating budget.

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And this is going to come to us by way of our interim finance director, Mr.

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Eppman.

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And before I kick it off to him, I'm just going to go straight to him.

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Okay, I will have our city manager, Dr.

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Anavarez start this.

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But before we start, I wanted to thank interim finance director,

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Eppman and your finance team for putting together this incredible document.

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And the PowerPoint, the budget document, it was, it's a lot to digest.

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This is our first crack at this, and so I just wanted to thank all of you.

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I know you're probably going to get a lot more praises this evening on this, but

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I at least wanted to start with that.

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Madam City Manager.

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Thank you so much, Mr. Mayor, members of the City Council.

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Thank you for the accolades.

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They're very well deserved, we've been working very hard to bring this to you tonight.

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And then as we begin tonight's City Council Budget Workshop, I'd like to remind everyone

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that this is a discussion-based work session.

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No decisions will be made at this evening.

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The work session is designed to welcome your feedback from the respective council members

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on the city's proposed operating budget for the next fiscal year.

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And members of the executive team are here with us joining us.

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That will be here to support the conversation and answer any questions that you may have.

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This year's budget planning process is intentionally aligned with the city's strategic roadmap by integrating strategic and operational planning earlier in the process.

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Departmental priorities help shape both the strategic roadmap and the proposed budget for next year.

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Just a key change that I would like to spotlight is the timing of the departmental input or the presentations.

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This was front loaded to guide the priorities that are presented at this workshop.

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So tonight's presentation will focus on the proposed operating budget led by our

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interim finance director Sharif Edman with an in-depth presentation on the precarious

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fiscal state of the city of Hayward and assistant city manager Regina Youngblood.

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We close with a connection to community priorities.

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These proposals reflect the economic pressures ahead, and it also provides a close collaboration

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across departments for general fund balancing strategies, including creative reallocations

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to meet regulatory mandates, cutting operating expenses, and also capturing some salary savings

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through some existing vacancies and other cost containment actions that you will see tonight

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in great detail.

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So the next work session marks an important and early step in confronting the city's structural

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deficit.

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It does reflect our shared commitment to taking deliberate, thoughtful action to ensure

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We continue delivering exceptional services to the people of Hayward while laying a stronger and more sustainable foundation for our city's long-term fiscal health. So with that, I'll be here to join in the presentation with Interim Director Sharif Edmund along with the members of the executive team. And thank you for your continued commitment in partnership. So let's just go ahead and get started.

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Good evening, council. Thank you, city manager Alvarez. I am Sharif Edmund, your interim director of finance and I-2.

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I'm not wearing a tie, I don't want anybody to be able to grab me by that, so it's non-constricting.

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I am here today to present to you the State of the Budget, and this is the first time

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that Council has this opportunity to see this all together.

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There have been some individual conversations.

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This was also presented to CBFC, the Council Budget and Finance Committee.

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They have seen this presentation.

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I also shared this, and we have discussed this at the exec team, and I did have four sessions

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with all staff yesterday and today so that we are all on the same page and have the same

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understanding. So same presentation for everyone as we move forward.

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The agenda for tonight,

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what I hope we will talk about is talking about some of the finance basics to make sure that we're

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all on the same page when speaking some of the same finance terms, if you will, we'll discuss

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our financial situation. We'll talk about our projected revenue and expenses for next year

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and then talk about the deficit and mitigation strategies, which is really the quest of the

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the conversation for tonight.

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As Dr. Overs mentioned, all the department heads are here.

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This is meant to be a work session, meant to be a dialogue back and forth.

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So feel free to ask questions as we move along.

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Pros and cons of being in such a big room, right?

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It's acoustics I think are better in other pieces at the same time it's not as intimate as the smaller room.

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As you all know, Mayor and Council, I've been here a little over two months, and

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And I was tasked with helping out with the budget immediately since the budget was basically

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due within a couple of weeks.

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As you know, we start the budget process in January.

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March is really the heavy lift for all of the department's February and March.

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And then we present and we have the post and publish fairly quickly.

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And so the train had already left the station and this example, the boat has already left the dock.

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And I purposely picked a picture of a boat, a very large ship because the city of Hayward is a big operation, it's a big city.

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And you could be on a different level or a different floor, not necessarily know what other floors are doing.

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And it takes a while to course correct or make adjustments in this big ship that we have in open waters.

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And so I purposely choose this metaphor as we move forward in that we need time and

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change takes time and decisions take time to be able to move the ship and make corrections as we move along.

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And so that's the metaphor that I'll be using moving forward.

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As far as finance basics, when we talk about the city of Hayward, as you all know, we are a city that have nearly 1,000 employees, we have 950 budgeted employees.

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We are a $470 million organization, of that $470 million, $232 million is in general fund.

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And really under Council's discretion, as you know, is really the general fund portion.

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And we have water and sewer and other things and grants and federal funds.

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And that is not under your discretion to make decisions on.

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You can certainly see the programs and how those are funded.

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But at the same time, at the end of the day, as finance director and as council,

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what's really under your discretion is general fund.

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And that general fund for next year is projected to be at $232 million.

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You've heard us talk before, you've heard in all of your meetings in the past how you talk about a surplus.

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surplus, and surplus very simply is when revenue exceeds your expenses.

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So if you have a $232 million budget and you bring in $233 million, that $1 million is a surplus.

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Same thing on the deficit side, it's when your expenses obviously exceed your revenue.

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So if you have a budget and you're short, a million dollars, that's a deficit.

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The reserve is the actual cash at hand, the actual money you have in the bank.

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And so when we talk about reserves, when we talk about general fund reserves, that's the money in the bank that council has discretion on that any open meeting, you can make a decision to spend those reserves, you can move those reserves, you can spend them, you can do different pieces with them.

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And at the end of the day, we have multiple reserves, you might have a legal reserve or liability reserve, you have workers comp reserve, a CIP reserve.

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But at the end of the day, what's really under your discretion and that you discuss on a regular basis is your general fund reserve.

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in any typo

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Local year, as you know, when the fiscal year starts in July 1st, end of July 30th, it takes about six months to reconcile that year.

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We have to close out the books, we have to get it audited, and then we come back with our act for, we bring it back to council, and that's really the appropriate time when you assign your fund balance.

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Fund balance is what's left over at the end of the year, and so if you have a $232 million expense budget, you bring in $234 million, or $233 million, just use the $1 million example.

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So that's the appropriate time to come back to Council and say Council, we need you to assign the unassigned fund balance.

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So whatever that surplus was for the year, we come back and Council says put that back in our reserve account.

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Put that towards the CIP project, put that towards feeding the homeless, whatever it may be that's under your discretion.

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At the same time, if we don't have a surplus, if we don't have a fund balance to assign, that's the time when we come back and tell you how much reserves is necessary to be able to balance the budget.

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And so I just wanted to take a moment, I know you've heard these terms before, but

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sometimes we use reserve interchangeably with surplus or with fund balance or different pieces.

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At the end of the day, the reserve is your cash and the bank, and that's really what you're looking at.

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As you know, the city of Hayward has a general fund reserve policy, and

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that policy states that 20% of your approved operating expense budget should be set aside.

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The example that we use here is for next year's projected budget of $232 million.

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$2 million, 20% of that $232 million would mean $46 million.

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So by policy, what we're saying is that we want $46 million in our general fund reserve.

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Where it stands today is that we have $31.6 million in our reserve.

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So you can tell right off the bat we're well short of the $46 million target.

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I did take a look at multiple years, finance staff we looked at the last multiple years.

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We have not hit that 20% target.

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We've been at 18%, 15%, 16%, but not quite ever hit that 20%.

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But it is certainly the proper target to reach moving forward.

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Another metric to a way to look at this is the $31.6 million in general fund reserve is 14% of your operating expense or 1.7 months.

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And the best practice states that you want to have three months of reserve in your account to be able to account for fluctuations in the budget.

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There has been discussion of the movie theater, and as you all know, the movie theater does not come out of the operating budget.

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The movie theater was paid cash, and that cash was in your general fund reserve.

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So last year before the movie theater, purchase of $8.6 million, that was in that $31.6 million.

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So you were close to $40 million.

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You took money cash out of there to pay for the theater.

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There's another $2 million that was taken out for Watkins garage.

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there's a loan on that piece, so $10 million was shifted from your general fund reserve to pay for

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those two pieces. Over time we're going to the theory and the thought process was that you're going

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to replenish your reserves by paying it back over time.

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So in the current financial situation, as I

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continue to dig in and as the budget team which I wanted to introduce is Christina Crosby and Fran

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We sat down and we looked at the current financial situation as we're looking at the numbers.

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It became clear that the deficit was growing as you heard as a council before my arrival that we had possibly a $3 million deficit.

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And then it landed I think at $6 million and I think there were some internal discussions about a $9 million.

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Well, it was clear that the ship was heading in the wrong direction if you will.

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And when the numbers started to settle, it settled at $12.6 million is where the deficit's at.

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And I'll go through our projections, and we'll rat to get us there.

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The expenses continue to exceed revenue, that's very clear, and the spendable reserve we talked about moving forward.

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As we looked at the opportunities to balance the budget, it became clear that the one time fixes were no longer available and available to us moving forward.

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So when we looked at our projected revenue, we took every single line item in our projected revenue.

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And especially our analysts, Nick and Fran and Christina and us, as we sat down, they would analyze each line item and we have five or six years of history.

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We also have consultants that we utilize on some of these larger items and we also look out two and three years ahead.

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And so the very first thing we took a look at was, what are the changes?

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And so the net change for next year is an $8.5 million loss.

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And the biggest piece, as you look through here, the biggest source of revenue for

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us is property tax, which is the biggest source of revenue for almost every city.

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Our property tax for the city of Hayward is estimated to be at $80 million for next year.

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Property tax continues to grow.

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It's a very steady and it grows every year because folks are buying houses in the Bay Area.

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Your $400,000 home turns over and sells for a million dollars.

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Over there.

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The growth has slowed and the growth is slowing because number one, the interest rates have been very high and so that discourages buyers to buy. The second piece is there's been saturation and most of the people that wanted to buy a house bought a house during COVID or during the pandemic and that has slowed down as well. So that growth where you may have seen three or $4 million per year is the growth is only $2.5 million for next year. A piece that we talked about that some of you we were not aware of in full detail was the

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the $4 million in sales tax.

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The $4 million in sales tax is due to BART cars.

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The BART light rail system, the BART system,

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we're renovating their BART cars and replacing them with newer, more efficient cars.

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They would purchase these cars from New York, they would ship them to Hayward.

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The BART has their own corp yard, if you will, in Hayward.

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As they would put those on the line, we would receive that sales tax.

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And so that was an artificial bump if you will for the last two or three years.

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and that has stopped, they have finished that project.

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So that sales tax revenue would not continue.

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We had originally budgeted $2 million based on our consultants analysis.

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They did tell us just about a month ago, right before we were getting ready to finish the

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budget, that the actual impact is $4 million.

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And so we have built that into the budget moving forward.

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But sales tax, absent the BART car anomaly if you will, continues to grow steadily since

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the pandemic.

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We've all talked about, and we've known about the $4 million loss in ARPA.

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ARPA funding is now complete, if you will, all those projects have been dedicated and will be spent.

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And so there are no ARPA funds for next fiscal year, so that has to be backed out of the budget as well.

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In line with the property tax and the sales of houses, city of Hayward has a real property transfer tax.

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Not all cities have a real property transfer tax, only charter cities that implement this have this.

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And so we're fortunate to have that and what that is is there's an actual tax that gets charged on the actual transfer of the property.

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So not only do you get the ongoing property tax, but if a $400,000 house sells for a million dollars, there's a tax on that and we receive that revenue.

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Based on the slow down of the sales of houses and making up a number, if it was a hundred houses that we sold last year, we're estimated you would only sell 50 houses this year.

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So it would be about half that number, so that's a $2 million impact to the general fund.

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As you're aware, we're having conversations regarding TOT.

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The total TOT revenue is estimated at $3.5 million.

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We have had discussions on that.

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We're coming back to CBFC and coming back to Council to recommend what the final TOT tax should be for next year.

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As we make those decisions, we'll make that adjustment in the budget.

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But as you can tell, we're talking hundreds of thousands of dollars, maybe $500,000 as opposed to millions of dollars in some of these other pieces.

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So as we project it out, a $219.7 million general fund, we went to the expense side.

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You can see very clearly that we have a $232 million general fund expense.

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And so right off the bat, you can tell that there's a $12.6 million difference between our projected revenue and our projected expenses.

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As you all know, the state of Hayward is just like every other city in that we are a full service city.

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and we provide services to the community, and so all of our expenses, 80% of our expenses are in salary and benefits.

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And so when we make increases to salary and benefits, it obviously affects the entire bottom line.

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And the reason for the $11.2 million increase for next year is that it is the first full year of MOU and

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staff commitments that were made last year.

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There were some staff adjustments, some equity adjustments, and all of the different commitments we made on our staffing levels and staff MOUs.

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The fire department, for the first time, we're budgeting correctly, if you will.

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And making sure that it's transparent on the $7 million that's been the running rate for the fire department.

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However, there's been conversations, and there's been a commitment that the $7 million running rate or

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the annual run rate for fire is going to be reduced to $3.5 million.

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And we have a budget of that $3.5 million and not the $7.

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How do we budget the $7 would have been much higher?

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And so that reduces the overall over time, because I know folks have asked what's the overall over time for the city, and we're about $14 or $15 million a year, we've lowered that by the $3.5 million to reflect fire.

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When I first came to the city of Hayward, many folks said, you know what, Shree, if we've had this issue before, we've been in a deficit before, every time we say the budget is really bad, it turns out not so bad, or turns out we're okay, or we kind of figure it out, and we've been here before.

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And I wanted to check and see, you know, really where that was coming from or that was coming from and it turns out there is a lot of truth to that and validity to that.

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And the reason why is Hayward has been very fortunate to be able to have one time fixes and also some ongoing fixes when you've gone back to voters in different pieces.

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And so, I as your finance director, the city manager, the exact team, there are different

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We are looking at a TOT increase to be able to supplement our income. The city of Hayward has a real property transfer tax that helps, and that's a couple million dollars, for the agency. You also went back to the voters and the voters approved to have sent sales tax. You've gone back to the voters. You asked for a UUT increase, the utility user tax. You have different funds, as we mentioned.

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You might have your general fund reserve, you have your cash in the bank, you have other cash accounts.

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You have a liability account, you have a workers' comp account.

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And if different years you've overfunded those accounts, or you don't need all that cash is in there, you're able to make shifts.

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And so the last shift that council made, I believe last year or year before, was actually shifted cash from the workers' comp account into your general fund reserve.

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So there's different strategies there.

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Obviously, you have reserves for a reason, it's a rainy day fund, you use your rainy day fund as needed, and then there's vacancy savings.

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It would be very easy to come today, and I want to make sure that this point is heard to say, thank you all for coming today.

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The budget is balanced, we've used $12 million of reserves, right, and we're good to go.

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However, the $12 million is too large, it's too large just to say that we've balanced it.

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Had the budget been within $2, $3, $4 million, I think you could very easily say we'll use reserves and try to adjust.

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However, the $12 was too big, and I think it would be impudent and unwise, and obviously City Manager Alvarez and

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exec team, we've all agreed that the best approach is to really solve for that $12 million because we have a structural deficit.

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If you took it all out of reserves, your $32 million would be reduced by the $12 million and

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And obviously that 12 million would just continue to grow if we didn't make any course corrections.

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The last piece are vacancy savings.

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Vacancy savings is kind of like your last tool, your last internal tool to use.

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It's your cushion, if you will, in a budget.

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You know at any given time, when you have 950 employees that you're not going to have all of them employed all at the same time.

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Because you have recruitments, you have people that leave, there's a trition, there's turnover, and it takes time to hire.

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And so to take advantage of that vacancy savings, the city of Hayward has built in two, three, four percent in the past.

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In this budget, for this year, we're actually budgeting 5%, which is the highest that we've gone.

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That 5% vacancy savings represents $9.8 million, it's a lot of money to bank on your vacancy savings obviously moving forward.

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We were not comfortable moving higher than that, right now the current vacancy savings is actually at 10% for the agency.

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However, keep in mind that as with any organization when you have vacancies, there are folks that fill in those gaps.

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whether it's a temporary position or a contract position or a retired a new

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attend or a workout of class and so you need to be very careful that you're not

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actually eating until costs of actual monies that are being spent to get the

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work done. And so that's the piece of the vacancy savings. So the vacancy savings is

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usually your last dial to help. And so when I came on board as your interim

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director of finance and in discussion with the budget teams we've already used

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these tools. So I've run out of tools. I can't, there's nothing else, there's no other

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levers to pull or to push or to move. And so when the 12 really settles at 12, that's

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very clear that you have a structural deficit. It's not just a one time thing where you can

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make a fix. And so the $12.6 million is here and it's here for discussion. And the metaphor

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of the boat, if you don't make a correction to the 12.6, given all the costs that we have,

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given the cost of living and everything that we do, that 12 turns into 14, turns into 16,

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13 turns into 18, and if you don't write the ship, right, can get very squarely, very fast.

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Before even presenting the budget to Council and to staff,

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City Manager Alvarez and the executive team came together and we made some department wide reductions.

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And you may have heard about the 2% reduction department wide.

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This slide is a little misleading because when we talk about the department wide reductions of $480,000,

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There's different departments that did different things, and you can see the reductions that were made in some of these departments.

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What's not on here is you don't see police or fire or DSD or the IT department.

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They've made different types of reductions that didn't quite fit so nicely into this box.

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And so for example, for the fire department, they obviously have the discussion of the $7 million going down to $3.5 million.

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There's also the suspension of me who, that was recommended by the fire chief to suspend that for one year.

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So that alone is much more than a 2% reduction.

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The suspension of me who is about $1.5 million.

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The IT department uses internal service funds for different projects.

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They've also deferred about $750,000 in projects to a different year, so we don't spend it this year.

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The developmental services department did come up with their 2.5% reductions, but

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they also made adjustments to make sure that their other funding and

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some things that were in line that they don't...

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We don't always pay for their overhead costs that we made sure that we made adjustments accordingly. So they just not everybody just fit nicely into this box and we can go into detail if needed. The other piece is there's also just on a bigger level. There was clear discussion that needed to happen regarding program reviews of police and fire because police and fire is so big. We're really looking at the program model for police and fire. What's the best model for that? What's the best fiscal model for that? How do we sustain that moving forward?

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For lack of the better term, the police department has been put together by duct tape and

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mandates for some of the pieces that we're doing, and using vacancy savings and

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all the different pieces to try to get it done.

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And we really want to take a look at how to better build that model for the police department moving forward.

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As you all have heard in the past, one of the first things when we saw that the budget was really settling on a much larger deficit,

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I went to city manager Alvarez and recommended that we have a fall revise.

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As you know, we do a mid-year revise, and the mid-year revises in February or March, but we felt that that would be way too long to wait because the boat is still, the ship is still moving in a certain direction.

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And so what we wanted to do was introduce a fall revise so that we can come back to City Council, really have more time because the budget was literally due as we're talking about it.

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that's what's due now needs to be printed, and we need time to be able to sit down,

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relay that justice, sit with the department heads, and come up with true strategies in the fall and in the future moving forward.

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So the ask that was approved by City Manager Alvarez and by council is that we come back for a fall revise, and that's our intent, and we can talk more about that tonight as well.

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So, as we finished building the budget, it was clear that we needed a timeout, right?

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And so this was kind of like the reality check, the timeout.

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And so I came up with different words and I was trying to find the right nomenclature.

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But it was the period of respite, it's the rest, it's a no growth, let's take a chill pill.

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Let's all just kind of pump the brakes, whatever words you want to use.

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But this was the time for us to really take a look at the budget and

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our structure as we move forward.

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And so what we've recommended, what I've recommended, is that we evaluate all programs.

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We look at a departmental review.

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As you know, council, it's very easy to say that all of our programs or

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course services, all our programs are important, all our programs are essential.

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But really taking a deep dive into that.

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And are there programs, as you've mentioned on the dias before, that something that the county can do,

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or the state can do, or that the school district should be doing, all those different pieces?

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And so this is the slide or the time where we talk about you can't do it all, right?

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You're not able to feed the homeless, have your beds, clean the streets, have your PCI,

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cut the trees, do the lights, something has to give.

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And so financially, you just don't have the means to get everything done that you need.

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And so really need to start, it's an interesting way to put it, but

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to say, reprioritize your priorities, because you're not able to do it all.

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At the same time, obviously encouraging staff, council, and the community feedback.

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We want to hear from the community, we want to hear from staff.

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There are many things that staff have ideas that we don't know because we're not involved.

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We're not in the trenches and they could have some really great ideas.

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And this is not just a cutting exercise.

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We also need to look at revenue enhancement and where are their opportunities to bring a new revenue moving forward.

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I purposely have on this slide mayor and council position management.

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And this was very poignant, and I made it very clear as we were talking to staff.

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This doesn't say layoffs, this doesn't say furloughs, it says position management.

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The first part of position management is really taking a look at your vacant positions,

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making sure it's not business as usual, that we don't just hire for a position just because someone left yesterday.

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We have to take a look at every position that becomes vacant, how it's funded,

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not all positions are funded equally, some are grant funded, some are enterprise fund funded,

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some are general fund, some are public facing, some are safety facing.

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So there's all these different factors that you want to take a look at.

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At the same time, Kent Sugarcoat the fact that it is a $12 million deficit and

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it has to come from somewhere.

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And so rather than have it being financially based,

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really the the the decisions need to come from the program site and

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make decisions on your programs.

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And then how do you fund that and how do you have the positions match that moving forward?

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What's our message?

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So our message obviously is serving our community as our number one priority.

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I am your finance director, I'm the money guy.

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By serving the community is our number one priority, not the money, right?

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That's number one.

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Everything is on the table.

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We literally want to take a look at everything.

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Some discussions might take half an hour.

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Some discussions might take three years, depending on what we're doing.

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But really need to take a look at everything.

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Input from all stakeholders is key.

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Integrity and stewardship of funds is our number one priority, obviously, and finance is making

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sure everything we do has integrity and that we're maintaining the stewardship of the funds

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that are given to us.

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And then at this point, I stress with staff and we've stressed many times an exact team is that this really needs to be measured and thoughtful.

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It needs to take time. It needs to be measured. And we can't just come in with an axe or a hammer and expect to have a real change because you're not really changing the structure or the structural deficit as you move forward. So we want to make sure that we're sensitive to that. Change does take time like we talked about. It takes a while to write the ship. The hope is that the ship moves into the right direction. So the deficit actually starts to decrease as opposed to increase. Making our decisions based on priority, redefining our core services, and then evaluating all positions.

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based on priorities as we mentioned.

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This last slide council is a very small bullet point.

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This could be its own presentation.

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It could be its own page.

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But this is the monitor federal funding slide.

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This is the effects of our new president.

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This is the effects of the White House administration

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and some of the threats that have come through the door

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or through the mail.

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Two threats in particular.

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One is eliminating or cutting funding for agencies that have DEI programs.

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The second piece that's been about, not only for us as a city but nationwide and in the news, is reducing funding for folks that are sanctuary cities.

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And so those two have been on our radar, we're taking a look at that.

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The federal funding for the city of Hayward is about $22 million.

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Most of the federal funding and that $22 million are project based, so there is some a little bit of flexibility there.

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However, you still have CDBG funds, you do have grants that come through in other pieces that we need to take a look at.

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This budget with the $12.6 million deficit does not factor into any changes in federal funding yet.

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If need be, we would obviously make some adjustments and come back to council with that as we move forward.

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That is the end of my portion, the fiscal portion of the survey.

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I'm going to hand it over to Assistant City Manager Youngblood to talk about the resident satisfaction survey and

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I'm tying in to our priorities.

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Thank you, Sherit.

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As you prepare to ask questions and discuss the proposed budget,

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it might be helpful to recall what residents had identified as their top priorities

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and concerns in our most recent survey.

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Issues like housing cost, homelessness, crime, and infrastructure maintenance,

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particularly as it relates to potholes and litter remain at the forefront of their minds.

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These concerns are consistent with the broader trends we've seen over the past few years

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and provide useful context as we consider service levels and resource allocation.

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Some of these concerns like street maintenance and public safety fall squarely within the city's scope.

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Others such as housing costs are influenced by regional and statewide scheme factors.

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But still shape how residents experience and evaluate local governments.

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Next slide.

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This slide highlights the services that residents consistently rank as most important to them.

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Emergency response, neighborhood safety, and maintaining clean, well lit public spaces,

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remain top priorities.

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These also show strong interest in supporting local businesses that contribute to a sense

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of stability and belonging.

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These insights don't prescribe specific actions, but they do reflect the kinds of services

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that residents most associate with effective government.

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Residents also pointed out for us the areas where they see the greatest need of improvement,

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particularly around homelessness response, housing access and street maintenance.

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Residents have shared that they want to see more visible and responsive police presence

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in neighborhoods and not just general law enforcement.

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Traffic circulation also came up as an area for improvement, though the survey does

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not specifically tell us whether this relates to congestion, street design, or other factors,

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that is just something that we know is important to them.

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So in closing, tonight's presentation outlines the current fiscal context and the choices ahead.

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These slides, last three that I just presented are simply intended to reflect what we've heard

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from the community and may provide you with useful context as you continue your

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discussions.

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Thank you okay this is a work session and so what I'm going to do

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first is as we go over our notes here I'm going to open up for public comment and

399
00:34:37,530 --> 00:34:44,650
see if there's any public comment I don't have any public comment cards and let me

400
00:34:44,650 --> 00:34:52,050
see I do have one public comment online so I'm going to go to Suzanne iPhone. Go right ahead.

401
00:34:52,050 --> 00:34:52,750
Hi.

402
00:35:00,000 --> 00:35:12,820
I just want to say, hallelujah, we're finally facing reality, and going back to the way things should have been all this time. Thank you.

403
00:35:17,940 --> 00:35:32,900
We do not have any more public comment. So I will close public comment, and then I will come up to the day. And we have councilmember Bonilla. All right. Thank you so much.

404
00:35:32,980 --> 00:35:40,240
mayor, and thank you, interim finance director, and the whole finance team and everyone for this great presentation.

405
00:35:42,420 --> 00:35:47,380
So this assumes 14% TOT increase, right?

406
00:35:47,600 --> 00:35:54,940
So if, and that's about 1.5 million, so anything that we do to decrease potentially that TOT would,

407
00:35:55,180 --> 00:36:00,680
we would start throttling that 1.5 million and anything we throttle there would just be a further hit on the reserve.

408
00:36:03,900 --> 00:36:09,840
Councillor Marbonne, the budget does have a built-in of 12.5, as it stands right now.

409
00:36:10,080 --> 00:36:10,820
I thought it was 14.

410
00:36:10,860 --> 00:36:13,620
We did put in a couple hundred thousand dollars as an increase.

411
00:36:14,460 --> 00:36:20,680
So however way you look at it, the increase in TOT could either represent a 12.5 which was

412
00:36:21,240 --> 00:36:25,020
CBFC's recommendation plus a couple hundred thousand dollars, or you could look at it as

413
00:36:25,020 --> 00:36:25,780
a 14%.

414
00:36:25,780 --> 00:36:27,420
It actually turns out to be almost the same number.

415
00:36:27,420 --> 00:36:40,020
And so whatever we decide in whatever you decide in CBFC, which is then the recommendation to counsel, we will adjust accordingly, but you're literally talking about probably $100,000 in the entire budget.

416
00:36:40,440 --> 00:36:50,420
So the placeholder is 14% or the 12.5% plus a bump increase to make up to that 14% for your answer is yes, to give you a convoluted answer.

417
00:36:50,420 --> 00:37:01,220
No, no, that makes sense because I just, I think that grounding is helpful because whatever we don't do with TOT is going to be a directed on the reserve that we have.

418
00:37:01,460 --> 00:37:03,640
So I think I have sobering.

419
00:37:04,340 --> 00:37:14,080
But the other thing that I found kind of interesting is if we don't solve this 12.6 million, this will bring our reserve down to like roughly 8%.

420
00:37:14,080 --> 00:37:19,300
What would that do generally if we're writing it in 8% reserve?

421
00:37:20,060 --> 00:37:21,280
That's correct, I can't remember.

422
00:37:21,720 --> 00:37:26,660
Basically, it's difficult because your reserve is your only account that you have at

423
00:37:26,660 --> 00:37:28,040
the end of the day for a rainy day fund.

424
00:37:28,540 --> 00:37:33,520
If a funding stream stops, if something gets delayed, if something happens, same with your

425
00:37:33,520 --> 00:37:34,080
home expenses.

426
00:37:34,400 --> 00:37:38,480
If you don't have some sort of savings account for the refrigerator breaking or the washer

427
00:37:38,480 --> 00:37:42,380
dryer going out, our washers and drives are much more bigger ticket.

428
00:37:42,380 --> 00:37:53,020
But to have a $470 million organization, $230 million organization with a reserve of 8% would be troubling.

429
00:37:53,240 --> 00:37:58,180
It would not, that would not be best practice and I would not advise that that happened because there's so

430
00:37:58,180 --> 00:38:03,540
many things and we're living in such an uncertain time right now that if something was to occur, you do not want to be there.

431
00:38:04,160 --> 00:38:08,220
The bigger peace councilman is not just the fact that it's 12.6.

432
00:38:08,220 --> 00:38:17,160
I remember that 12.6 grows right all costs will go up and so absent any direction you'll still be in the same boat next year just looking at higher expenses.

433
00:38:17,620 --> 00:38:28,400
Yeah, no, I mean, I agree that we need to do whatever we need to do to protect that reserve and I don't even like it being at 14% spendable.

434
00:38:28,580 --> 00:38:35,820
One of the things I asked us to do kind of generally was to look at strategies to claw back some of the reserve, not just kind of keep it flat.

435
00:38:35,820 --> 00:39:03,980
That because going into all of this uncertainty, just this year, this budget cycle, and in future budget cycles, 14% reserve doesn't really give us much wiggle room for all of the uncertainty that we can be facing when we look at just the uncertainty of federal funding, you had mentioned that's 22 million, we wouldn't even have enough money in our reserve to cover that if we didn't take aggressive action to really solve for this 12.6 million that we have here.

436
00:39:03,980 --> 00:39:18,300
So, I do appreciate the creativity of staff and everyone to come together to really understand the sense of urgency in this moment for us to need to tackle this budget with the true sense of purpose and sensibility.

437
00:39:18,820 --> 00:39:31,920
The other question that I had is, when we looked at the resident satisfaction survey results that Assistant City Manager Youngblood just shared, the second I believe the second priority was homelessness, right?

438
00:39:31,920 --> 00:39:40,220
So this budget document also says we get less than 1% of county investment in homelessness services.

439
00:39:40,600 --> 00:39:44,040
So what is the plan for us to work with the county?

440
00:39:44,640 --> 00:39:50,000
Because Hayward certainly represents much more than 1% of county services across the COC.

441
00:39:50,560 --> 00:39:55,680
So what are we going to do to be intentional about working with the county to get more of that pie?

442
00:39:55,680 --> 00:39:58,900
Why? Our community services.

443
00:40:00,000 --> 00:40:05,620
Manager Amy Cole Bloom has been working very tirelessly with the county and also her regional

444
00:40:05,620 --> 00:40:11,680
counterparts to strategize what we can do to have the county actually meet its promise to

445
00:40:11,680 --> 00:40:16,520
use measure W funds towards homelessness. There is a growing concern that there are some

446
00:40:16,520 --> 00:40:21,440
members of the Board of Supervisors who have an idea of using those funds in a different way.

447
00:40:21,680 --> 00:40:27,100
We would ask your assistance in lobbying your counterparts to utilize measure W in Alameda

448
00:40:27,100 --> 00:40:29,160
the county to help us with our homelessness situation.

449
00:40:29,840 --> 00:40:35,700
There's some other federal funding or state funding that may be coming available state funding in particular.

450
00:40:36,200 --> 00:40:45,160
That's associated with Gavin Newsom's new requirements, that could be about $3.3 billion that we could seek funding for.

451
00:40:45,380 --> 00:40:50,420
But that may require our stance on encampments to change.

452
00:40:52,200 --> 00:40:58,360
And if I may also add, Supervisor Markis has been a great advocate for the City of Hayward.

453
00:40:58,980 --> 00:41:03,940
And when I alerted her to the information in terms of the investment from the County

454
00:41:03,940 --> 00:41:09,640
Human Services Agency, she was able to engage in conversations with staff and they're looking

455
00:41:09,640 --> 00:41:13,420
at the investment and it's much greater than 1%.

456
00:41:13,780 --> 00:41:16,780
So we'll be coming back in the fall revised to give you the accurate number.

457
00:41:17,660 --> 00:41:18,740
Got it, thank you.

458
00:41:20,380 --> 00:41:24,800
Speaking of the fall revise, I was going to go there in a few questions, but I guess I'll go there now.

459
00:41:25,460 --> 00:41:31,660
What does it look like between now and the fall revise, and I guess what are we, what's the target?

460
00:41:31,900 --> 00:41:40,320
So is tonight we're just saying, hey, we have a $12.6 million problem on our hands, and then are we saying between now and this fall revise?

461
00:41:40,940 --> 00:41:46,600
Staff is going to work together to close that, or are we saying that we don't know what's going to come out of it?

462
00:41:46,600 --> 00:42:16,460
that we're hoping to see some reduction, but is there like a target to say that if we're looking at, you know, this, this 12 million, we want to come out of the fall revise, you know, less than two, I don't know, like, how are you thinking about the activities between now and the fall revise so the, um, there's a lot of work that needs to take place and it's going to take a, it's a multi year reset, we're hoping that by the fall revise will have a better understanding and a new number to share with you, particularly, particularly around the police department

463
00:42:16,460 --> 00:42:23,280
So, we're restructuring the police department's budget, so that's a lot of work that we're currently embarking on.

464
00:42:23,800 --> 00:42:27,220
And also, we're looking closely at the library.

465
00:42:27,660 --> 00:42:32,800
If you notice the library is not on the list, and that was a question of the year, why is the library not there?

466
00:42:34,060 --> 00:42:38,300
Because I really accepted them from their contribution of the 2%.

467
00:42:38,300 --> 00:42:45,940
Because the library needs microsurgery to minimize the impact and we need to have the opportunity

468
00:42:45,940 --> 00:42:51,220
to bring in offset some of the losses with additional resources from outside the general

469
00:42:51,220 --> 00:42:51,540
fund.

470
00:42:52,200 --> 00:42:54,180
So there's a lot of work that needs to be done.

471
00:42:54,660 --> 00:43:03,140
We don't have a specific numeric target, but it's definitely a sovereign conversation as

472
00:43:03,140 --> 00:43:05,580
how can we reduce the use of the reserves.

473
00:43:05,580 --> 00:43:12,040
So something of substance, something meaningful, but it's worked that we're currently doing.

474
00:43:12,560 --> 00:43:13,380
So I can give you a number.

475
00:43:16,520 --> 00:43:23,080
Okay, so when, so I guess the process would be, I know we're not passing the budget.

476
00:43:23,220 --> 00:43:34,900
So it's a work session, but later we would essentially pass the budget with $12.6 million in reserves that we're going to say yes to.

477
00:43:36,180 --> 00:43:44,400
Essentially, we're going to, you know, go into this saying, we're dropping our reserve to 8%, unless something comes out of this fall revise.

478
00:43:44,720 --> 00:43:52,260
But if we don't get the juice out of that fall revise squeeze, we're going to be thinking this reserve to 8%.

479
00:43:53,480 --> 00:44:05,000
Councilmember Boney, I guess because the budget is coming back on June 3rd, which I believe is what is that two weeks, two weeks out, three weeks out, council before them would be looking at a budget with a $12.6 million deficit.

480
00:44:06,720 --> 00:44:20,180
The intent is to say, you're approving a budget absent any direction worst cases that you're going to use $12.6 million in reserves, however the commitment from City Manager Alvarez and staff and the exact teams that we're not going to do that.

481
00:44:20,720 --> 00:44:44,940
Using the metaphor of the ship, the hope is that over a multi-year process, that $12 million turns into nine, turns into six, turns into three, and then you break even, and so you would expect, and we would all expect that by the fall revised that that number is going to shrink, and how long it will take, you might have one bite at it that takes a million dollars out right away, six months of nothing, and then two years from now, there's a plan for $6 million to be reduced.

482
00:44:44,940 --> 00:44:49,480
I don't know what that looks like yet, but the intent is that that ship has to move in

483
00:44:49,480 --> 00:44:53,000
the right direction, and reserves are here for a reason on the flip side, right?

484
00:44:53,120 --> 00:44:57,100
To be able to cushion that, however, to use it to do nothing and just take 12 would be

485
00:44:57,100 --> 00:44:59,780
improvement but steps need to need to happen.

486
00:45:00,000 --> 00:45:29,980
And short order to make sure that you don't fully utilize that $12 million, because it's very difficult to get that back, as you mentioned. Yeah, I mean, I was almost going to ask and I don't know if it's realistic, but it's like, what can we do between now and the next time we see this budget to not be at $12 million, right? Because I'm not comfortable going into this with $12 million and then saying, I'm hoping that over the next three months, we're able to figure it out. And I don't even know when the fall revises. Is that September? Is that October, the longer we wait, the more we're burning, the more we're not going to be able

487
00:45:29,980 --> 00:45:38,960
So I totally respect what you're saying, and I also see the snowball effect and the compounding effect of us not taking serious urgent action like now.

488
00:45:40,600 --> 00:45:47,080
So that's sort of some of the ways that I feel about that, a few more things, and then I would left here from the rest of the day.

489
00:45:47,220 --> 00:45:53,060
But what's driving the 14 net new employees for the city when we're looking at this kind of structural deficit?

490
00:45:53,060 --> 00:45:59,440
I mean, are these 12 net new because when I saw the numbers of staff, right, we're going up by 14.

491
00:45:59,960 --> 00:46:04,420
So are those like absolutely mission critical roles that the city cannot survive without?

492
00:46:04,680 --> 00:46:07,600
No council member, there are no increases to the budget.

493
00:46:07,880 --> 00:46:09,240
It's exactly the same from last year.

494
00:46:09,880 --> 00:46:13,920
So as far as I want to make sure we're on the same page.

495
00:46:14,300 --> 00:46:22,640
So it says staffing summary on page 29, it says in 2024, we adopted a general fund budget of 686 staff.

496
00:46:22,640 --> 00:46:26,100
It says in 2025, we adopt it one of 700.

497
00:46:26,600 --> 00:46:30,760
What's driving that increase between 686 and 700?

498
00:46:31,040 --> 00:46:34,620
Is that 24 to 25 council member because 25 to 26?

499
00:46:34,720 --> 00:46:40,280
Oh, I see it, so it's probably some of the staffing increases that we've got this year is correct.

500
00:46:40,880 --> 00:46:44,900
So to make it clear, to make sure we're all on the same page, there was an increase two years ago.

501
00:46:45,120 --> 00:46:49,260
However, council member Bonilla and council, the budget is exactly the same.

502
00:46:49,260 --> 00:47:00,100
So it's 700.6 I believe, I don't have, I'm not looking at the, 700.9 that's the exact same number for next year, and the same number for all staff, including enterprise funds.

503
00:47:00,440 --> 00:47:03,440
So there, it's a status quo personal budget there are no increasing.

504
00:47:03,540 --> 00:47:05,540
Thank you, thank you for that, thank you for clarifying.

505
00:47:05,820 --> 00:47:07,220
Nope, I miss read that, thank you.

506
00:47:07,680 --> 00:47:09,300
Okay, two more quick ones.

507
00:47:09,920 --> 00:47:17,140
How realistic do you think it is that we're going to get to a 5% vacancy savings when we've targeted previous years like a 3%.

508
00:47:18,520 --> 00:47:25,660
Because I guess I just want to make sure that the assumptions we're going in building this budget with are, you know, are strong assumptions.

509
00:47:25,780 --> 00:47:27,600
So what was our vacancy rate maybe last year?

510
00:47:28,540 --> 00:47:32,080
Vacancy rate last year was probably around 10.5 to 11%.

511
00:47:32,080 --> 00:47:39,880
And as interim finance director Sharif Edmund said before, we're currently at about a 10% vacancy rate.

512
00:47:40,160 --> 00:47:47,060
I think that happens naturally, but we are also in addition to the natural attrition going to be

513
00:47:47,060 --> 00:47:51,280
employing a vacancy management strategy where as Shreef said,

514
00:47:51,480 --> 00:47:52,760
it's not going to be status quo.

515
00:47:53,140 --> 00:47:54,960
We're going to be evaluating each vacancy

516
00:47:54,960 --> 00:47:58,100
against six different criteria to determine whether or not

517
00:47:58,100 --> 00:47:59,280
it needs to move forward.

518
00:47:59,820 --> 00:48:03,340
And if it doesn't move forward, and it stays in a low status

519
00:48:03,340 --> 00:48:06,340
for filling for a period of time,

520
00:48:06,620 --> 00:48:09,800
we can think about the elimination of those positions

521
00:48:09,800 --> 00:48:10,340
altogether.

522
00:48:10,860 --> 00:48:13,620
But obviously, as we get to a space where we're looking

523
00:48:13,620 --> 00:48:16,320
at positions that have been vacant for a very long time,

524
00:48:16,320 --> 00:48:19,740
And we will need to engage our labor partners about the redistribution of work.

525
00:48:20,200 --> 00:48:21,900
Yeah, that's a very good point.

526
00:48:24,160 --> 00:48:28,040
Okay, and then as it relates, my last question here is,

527
00:48:28,160 --> 00:48:34,040
as it relates to the reductions that we saw to get to the, I think like $480,000, right?

528
00:48:34,580 --> 00:48:40,320
I was kind of, I thought I was hearing something around each department may be contributed to 2% reduction,

529
00:48:40,480 --> 00:48:46,000
but I don't think that that's accurate because the maintenance department has a $55,000 reduction

530
00:48:46,000 --> 00:48:52,460
I don't know what their overall budget is, but then HR came in at $150,000, and I'm assuming their budgets aren't equal.

531
00:48:52,780 --> 00:48:58,000
So, how did we proportion, or what percentage rather of these reductions?

532
00:48:58,400 --> 00:49:01,700
What's the percentage of these reductions against these department budgets?

533
00:49:02,340 --> 00:49:06,440
Very good question, and that's why that slide was awkward because it's a net reduction.

534
00:49:06,600 --> 00:49:10,880
And so it doesn't quite capture, and if we have put in a slide, it would get very detailed.

535
00:49:11,280 --> 00:49:15,080
And so to use the example of maintenance services, they did come in with a 2% reduction.

536
00:49:15,540 --> 00:49:24,140
However, they're in charge of the PG&E bill, as an example, or other contracts that are beyond our control, and that will just wipe out your 2% reduction for lack of the better term.

537
00:49:24,380 --> 00:49:30,620
So when departments came in with their 2% reduction, let's say my task as a department head was to come up with $100,000 in reduction.

538
00:49:31,000 --> 00:49:37,980
I come into that meeting, I make my $100,000 reduction, but at the same time, you need to note that the PG&E bill is higher.

539
00:49:37,980 --> 00:49:40,240
So I can't come up with a $100,000 reduction.

540
00:49:40,240 --> 00:49:46,700
It's going to be reduced by a $30,000 increase, or my contract to cut trees or to paint the road or to do something.

541
00:49:47,180 --> 00:49:56,660
And so that's why that slide is a little difficult to fully share as opposed to the aggregate is saying the department heads came up with $500,000 in savings, where each department is a little bit nuanced.

542
00:49:57,300 --> 00:49:59,980
And other departments had different fundings and different pieces attached to it.

543
00:50:00,000 --> 00:50:29,640
So it's not as clear as it can be. But the task of the 2% was met by the departments with the exception of the library, which was exempt, and then moving forward. And then if you look at fire, for example, suspension of me who $1.5 million is much larger than 2%. Right? And so that's why it's hard to put on one slide exactly what happened in each department. Yeah. I'm just really looking forward to this fall revise because I think what my concern is, is if we just did all of this work to get to 2% and we're talking $480,000.

544
00:50:30,820 --> 00:50:37,820
And then me who I get it and that was our big landslide of 1 million or 1.5 million, but we still got to reduce 12 million.

545
00:50:38,400 --> 00:50:44,080
I'm like we just had all of these departments do all of this work over all of these months and we're reducing half a million dollars.

546
00:50:45,140 --> 00:50:52,420
And we have to somehow work together to really figure out how it is we're going to balance this budget so

547
00:50:52,420 --> 00:50:58,920
we don't bankrupt the city and that we can continue as you so eloquently said, centering the services that our communities expect.

548
00:50:59,580 --> 00:51:21,080
So, I do look forward to being involved in whatever way possible around discussions related to course services and better prioritizing and really collaboratively working to make sure that we're shaping a budget that serves everybody in our community the best and obviously this is the city that does that and our workers do that.

549
00:51:21,080 --> 00:51:37,740
So, wanting to just make sure that, you know, we're really centered on the seriousness of this and how it is we come together to really solve it, because this is something that has to be solved, but I know our leaders in the city are committed to doing that, so I look forward to working with you guys to see how we're going to be creative in making that happen. But thank you very much for this work session.

550
00:51:38,620 --> 00:51:40,900
Thank you, Councilman Brandrieu.

551
00:51:41,340 --> 00:51:42,180
Thank you, Mayor.

552
00:51:42,460 --> 00:51:43,920
Thank you, staff for the presentation.

553
00:51:44,400 --> 00:51:53,460
I wanted to get more information about measure W and what are the other priorities the supervisors are looking at.

554
00:51:55,360 --> 00:52:04,700
Unfortunately, I don't have that information, but I do know that the promise that was made when the measure W was passed was related to homelessness and homelessness response.

555
00:52:04,700 --> 00:52:07,400
But I can certainly check into that and get back to you.

556
00:52:07,780 --> 00:52:16,640
Okay, well, we should remind them of what those priorities are, what they went out for, but yes, I would like to see a proportionate response.

557
00:52:17,500 --> 00:52:31,200
We were looking at those dollars when we seek funding from MeasureW and I look forward to partnering with the Board of Supervisors because this is a regional problem and we need their support to address it.

558
00:52:31,200 --> 00:52:40,960
I wanted to also get a little bit into economic development and I understand that we have

559
00:52:40,960 --> 00:52:46,900
been filling these, the sales leakage types of businesses.

560
00:52:46,900 --> 00:52:47,960
We've been addressing those.

561
00:52:48,300 --> 00:52:54,580
We've been adding furniture stores, grocery stores, restaurants that people have been asking

562
00:52:54,580 --> 00:52:55,020
for.

563
00:52:55,020 --> 00:53:14,320
We wanted to see how are we looking at the other item that was brought up last week, which was entertainment, and how that is actually causing us not to be able to collect as much TOT as we could if those hotel rooms were being filled.

564
00:53:14,320 --> 00:53:25,780
And I wanted to see how can we revisit that department or other divisions to kind of help with entertainment.

565
00:53:25,980 --> 00:53:31,280
I understand we have a special events process process now, which I really appreciate.

566
00:53:31,860 --> 00:53:41,120
But it seems like our, I would say the organizations that could be part of this solution don't have the infrastructure to do it.

567
00:53:41,120 --> 00:53:44,140
So what are we going to do as a city to address it?

568
00:53:44,220 --> 00:53:49,820
How can we look at our current infrastructure with our current budget to do what we need

569
00:53:49,820 --> 00:53:54,700
with our hotel liars have been asking for, which is to bring more entertainment to the city

570
00:53:54,700 --> 00:53:57,000
as I've been seeing with neighboring jurisdictions?

571
00:53:59,760 --> 00:54:00,580
I don't know who can do that.

572
00:54:00,580 --> 00:54:06,320
I don't see that our chief economic development officer is here to answer that question and

573
00:54:06,320 --> 00:54:08,640
I would not want to speak on his behalf.

574
00:54:09,020 --> 00:54:09,260
Okay.

575
00:54:09,260 --> 00:54:16,300
I would, well, is there, maybe because he's not here, which is fine, since this is just

576
00:54:16,300 --> 00:54:23,300
the work session, I would like to see if we can restructure how we, if we don't have

577
00:54:23,300 --> 00:54:28,940
a visitor's bureau, if we have a couple of agencies that are not bringing in the entertainment,

578
00:54:29,260 --> 00:54:34,680
we need to figure out how to do it and house with the staff that we have and see if we can

579
00:54:34,680 --> 00:54:39,520
revisit their priorities. If that's something that we can do internally, I think this should

580
00:54:39,520 --> 00:54:45,740
be the highest priority right now. Because as Director Finance, Director Finance at Menace

581
00:54:45,740 --> 00:54:51,940
said, we've pulled all these different levers. We've gone to the voters. We've done all these

582
00:54:51,940 --> 00:54:59,960
things. This is the only lever that we have. And then also, wanted to see if-

583
00:55:00,000 --> 00:55:29,860
We can also look at visiting our permitting process, seeing that there's any ways we can streamline. I know we have a new online system which I'm hearing great things about, so hopefully that can help with reducing some of the costs that is to manage those permits. But we wanted to see if there's any other, since we've already done that, are there any other appeals or

584
00:55:29,860 --> 00:55:34,180
fees, processes that we can look at to make it more efficient to collect those fees.

585
00:55:35,500 --> 00:55:41,320
So it's reduced, you know, energy on staff to get those fees but we can get those revenues

586
00:55:41,320 --> 00:55:41,980
sooner quicker.

587
00:55:44,220 --> 00:55:48,960
I don't know if there's any other, if that's, I mean, if someone wants to respond to it

588
00:55:48,960 --> 00:55:53,400
great, if they don't go and take a note of it, I'm just also trying to look at any other

589
00:55:53,400 --> 00:55:55,180
levers we can look at.

590
00:55:55,180 --> 00:56:00,300
But I know that we also in the past ask for a list of properties.

591
00:56:00,920 --> 00:56:04,680
And I know there's some concern about how we approach that, but I do think we need

592
00:56:04,680 --> 00:56:13,000
to revisit that list not necessarily to sale, but look at leasing those facilities in

593
00:56:13,000 --> 00:56:14,360
order to bring in more revenue.

594
00:56:15,580 --> 00:56:18,860
So I would like to see that list and see what is actually available.

595
00:56:19,040 --> 00:56:23,040
I know there's some properties that we just have just because of easements or whatever,

596
00:56:23,040 --> 00:56:29,120
But things that are actually that could be attractive to businesses to lease is what I'm interested in and if there are any

597
00:56:29,120 --> 00:56:32,520
Properties that we're under utilizing maybe we can start looking at

598
00:56:32,520 --> 00:56:38,640
Okay, it's only a couple people or departments in that location and are there only using this for storage?

599
00:56:39,080 --> 00:56:41,640
Can we start using that for for revenue?

600
00:56:43,020 --> 00:56:50,640
Councilmember Andrews. Yeah, I may we are scheduled to bring to you the listing of city properties on May 27th

601
00:56:50,640 --> 00:56:54,140
Director Emery is ready to make that presentation.

602
00:56:54,540 --> 00:57:03,880
In the context of the financial policies of what do we do with the process of the sale proceeds of public lands?

603
00:57:04,280 --> 00:57:06,900
So we have policies around that and we'll go over all of that.

604
00:57:07,560 --> 00:57:16,860
Yes, yes, I do understand the selling of land has affordable housing component that needs to take priority but is it the same for leasing?

605
00:57:17,500 --> 00:57:23,740
No, I'm speaking to the sales proceeds from the public lands so we're required to place

606
00:57:23,740 --> 00:57:29,740
the city policy that speaks that was required to invest first and foremost on OPEB and

607
00:57:29,740 --> 00:57:30,400
our retirement.

608
00:57:30,560 --> 00:57:30,760
Okay.

609
00:57:31,220 --> 00:57:36,380
But it's important to understand the portfolio properties and the opportunities so Director

610
00:57:36,380 --> 00:57:41,420
Ameri has confirmed with me that he will be ready to present on May 27th.

611
00:57:41,440 --> 00:57:41,860
Okay, great.

612
00:57:41,860 --> 00:57:44,920
But so even with that that will help the budget, right?

613
00:57:45,580 --> 00:57:45,840
Okay.

614
00:57:45,900 --> 00:57:46,040
Great.

615
00:57:46,420 --> 00:57:46,960
Okay, great.

616
00:57:47,980 --> 00:57:48,100
Okay.

617
00:57:48,400 --> 00:57:53,160
And then the last thing I do want to talk about is investing in our infrastructure.

618
00:57:53,160 --> 00:57:57,180
I don't want us to lose sight of that because it will be more extensive later.

619
00:57:57,200 --> 00:58:03,800
So I hope we're not sacrificing too much on that front because it will get more expensive later.

620
00:58:04,360 --> 00:58:11,180
I hope we can still invest in things like making sure our sewers and water lines are being replaced.

621
00:58:12,980 --> 00:58:18,580
emergencies, every dollar of preventive maintenance, it saves $6 or something like that in terms

622
00:58:18,580 --> 00:58:24,040
of emergencies, so we should just keep track of that. Also, I hope we're not sacrificing

623
00:58:24,040 --> 00:58:32,020
any huge budget cuts to cybersecurity, anything related to that, that also is very costly,

624
00:58:32,040 --> 00:58:37,680
so we just want to make sure that that is still a priority. And then if we can start looking

625
00:58:37,680 --> 00:58:46,260
at creative ways to reduce maintenance so if that is looking at our utility boxes, putting

626
00:58:46,260 --> 00:58:52,840
a mural on it in order for us to not send out staff over and over again to do graffiti.

627
00:58:53,180 --> 00:58:56,620
I'm looking for those opportunities as well and if there's any other infrastructure like

628
00:58:56,620 --> 00:59:01,080
that, looking for those opportunities as well so that's it for now.

629
00:59:01,220 --> 00:59:05,760
I'm sure there's more that might come up later but I just wanted to make sure the main

630
00:59:05,760 --> 00:59:11,300
many things I'm concerned about is economic development looking at our properties in continuing

631
00:59:11,300 --> 00:59:12,400
the best in our infrastructure.

632
00:59:12,840 --> 00:59:13,080
Thanks.

633
00:59:14,160 --> 00:59:14,800
Thank you.

634
00:59:15,820 --> 00:59:17,080
Councilor Mayor Pro Tem wrote.

635
00:59:17,820 --> 00:59:23,000
Thank you and thank you, Councilman, for all of your questions because you definitely sort

636
00:59:23,000 --> 00:59:23,460
of raised some.

637
00:59:24,060 --> 00:59:28,300
But I guess my bigger question is so 12.6 million is the worst case scenario right now.

638
00:59:28,700 --> 00:59:32,680
Is there some hope that you have from us today, like are you, is there some question you're

639
00:59:32,680 --> 00:59:38,600
You're trying to ask us where it comes to core services that you're hoping that we get to some cuts before the June 3rd adoption.

640
00:59:38,920 --> 00:59:46,920
Because it seems like, this is the presentation, this is what we don't want to be doing, we'd rather pull less from the reserve.

641
00:59:47,360 --> 00:59:53,680
But is there something around core, I guess that's what I'm asking, how do we decide what's core services before we get to pass in this budget,

642
00:59:53,960 --> 00:59:57,300
where we can, again, is there something you're asking of us?

643
00:59:59,120 --> 00:59:59,980
I would defer it

644
01:00:00,000 --> 01:00:27,960
to city manager Alvarez to answer that piece. But also, any action or anything that we can do before June 3rd, I think, obviously, would be welcome. Tonight, we're looking for themes. And obviously, if themes come up on the same things happen, then, obviously, those are the things that we're going to explore moving forward, but I'll defer to city manager Alvarez. The only thing that I would add to that is that we're anticipating to do the program evaluation approach to understand and redefine course services.

645
01:00:27,960 --> 01:00:33,400
And that's a very large body of work, and we were anticipating to take next fiscal year

646
01:00:33,400 --> 01:00:38,860
to complete that work, understanding the urgency to be able to stop, continue to dip into

647
01:00:38,860 --> 01:00:39,600
the reserves.

648
01:00:40,240 --> 01:00:42,560
But it's a very large body of work.

649
01:00:42,840 --> 01:00:48,640
There are additional pieces that we can discuss in anticipation of June, and that will be bringing

650
01:00:48,640 --> 01:00:49,720
forward to the City Council.

651
01:00:50,400 --> 01:00:57,260
But again, the majority of the opportunities, right, reside on a programmatic approach, and

652
01:00:57,260 --> 01:00:58,380
And we need the time to do the work.

653
01:01:00,200 --> 01:01:03,520
So, but is there, I mean, since, is it June 3rd that we're supposed to get to the adoption

654
01:01:03,520 --> 01:01:04,020
of the budget?

655
01:01:04,540 --> 01:01:07,700
So I guess the work, I mean, I guess the work has happened now between now and June 3rd,

656
01:01:07,700 --> 01:01:09,340
for there potentially to be any changes.

657
01:01:09,500 --> 01:01:09,800
Is that right?

658
01:01:10,460 --> 01:01:13,680
Well, we're going to be doing some work, but we won't finish the programmatic approach.

659
01:01:13,920 --> 01:01:16,700
We won't be doing the redefining of the core services.

660
01:01:17,720 --> 01:01:23,580
The $12.6 million budget deficit that you see here has already been significantly reduced

661
01:01:24,040 --> 01:01:25,620
by other actions that we've taken already.

662
01:01:25,620 --> 01:01:31,600
So what we could have done already, it's been done, there's maybe one or two more pieces

663
01:01:31,600 --> 01:01:33,740
to consider, but no more than that.

664
01:01:34,400 --> 01:01:40,920
And then we really need to start looking program by program service by service and that

665
01:01:40,920 --> 01:01:42,280
decides for the departments.

666
01:01:43,000 --> 01:01:43,140
Okay.

667
01:01:43,540 --> 01:01:43,940
Okay.

668
01:01:44,180 --> 01:01:45,380
Yeah, because I guess that's because you're right.

669
01:01:45,480 --> 01:01:50,760
I mean, I really appreciate all the work that you and your staff have done and I'm sorry,

670
01:01:50,960 --> 01:01:55,000
Edmund, I was going to say Edmund, Edmund, that you've done to get us here and I appreciate

671
01:01:55,000 --> 01:02:24,820
all the departments and what you've done to try to tighten up your departments before you brought it to us, but I think you're right, it sounds like the work is now on on looking at all the programs and what really is a priority and what isn't and since that's the biggest part of the work, I guess we just pass this but I mean if it can't be done, we pass this budget and then hope to get to the fall and do it so yeah, because I think there probably are some questions we would have been able to answer about like the hard program came to us and I think we all sort of agreed and understood why that wasn't being funded efficiently and

672
01:02:24,820 --> 01:02:28,140
And so we did agree to pause that one for now.

673
01:02:28,560 --> 01:02:33,680
And maybe there are some other programs that could help us get to something less than 12.6.

674
01:02:34,380 --> 01:02:38,880
And identifying core services, of course, is a lot of the work and I understand it.

675
01:02:39,300 --> 01:02:42,960
And especially like obviously from the community satisfaction survey,

676
01:02:43,860 --> 01:02:46,160
presentation, a large part of it is public safety.

677
01:02:46,700 --> 01:02:52,620
And since PD and fire get the light and share the budget anyway it sounds like that's not an area where we're going to be cutting.

678
01:02:52,620 --> 01:02:58,460
So it looks like it's other programs that, you know, Council has made a priority over the years.

679
01:02:59,140 --> 01:03:10,140
And so I am really interested in that work, you know, and I think it would be good if some of it could happen before Jim, but if it's not then definitely before this fall, the fall look, you know, look back or, you know, to see how we can tighten further.

680
01:03:11,320 --> 01:03:20,060
Okay, so I guess that's why I was wondering, like, what is the ask here, right, because I don't think we're all going to voluntarily say, yeah, kind of homeless services, kind of housing services, like we're not going to do that unless.

681
01:03:20,600 --> 01:03:31,700
We understand and I'd like to understand, for example, you know, in housing and homeless, if we're spreading a lot of money out to different organizations in the city, what is that impact and what's the effect of that?

682
01:03:32,000 --> 01:03:38,020
Is there some way to sort of make that a more direct investment in one or two nonprofits or something like that?

683
01:03:38,080 --> 01:03:47,880
And I think that's an area where we could really look at how we're spending our money efficiently and perhaps agree as a council to direct money in a different way that might create some savings for us.

684
01:03:49,640 --> 01:03:52,760
So, obviously, that's a larger discussion, sorry, did you want to say something?

685
01:03:53,040 --> 01:03:54,660
You know, thank you, Councilmember Roth.

686
01:03:55,280 --> 01:03:59,520
And just to add more to what you're saying in terms of the body of work in public safety,

687
01:04:00,000 --> 01:04:03,880
to your point, the heart program was one of the programs that we brought to you earlier as

688
01:04:03,880 --> 01:04:09,280
part of the strategic roadmap to show you the detailed assessment that was done to understand

689
01:04:09,280 --> 01:04:15,560
the pilot in its different versions and the staff recommendation to modify the way we were

690
01:04:15,560 --> 01:04:20,480
doing the work that would generate some savings and also address the effectiveness of what

691
01:04:20,480 --> 01:04:21,120
was intended.

692
01:04:21,680 --> 01:04:25,320
So that's one program and a laundry of programs that we need to look at.

693
01:04:26,020 --> 01:04:31,720
But in terms of public safety, where they do have the lion's share of the allocation is

694
01:04:31,720 --> 01:04:36,660
also true that the police department just finished completing its organizational assessment.

695
01:04:37,500 --> 01:04:44,080
And our chief Brian Matthews is with his command staff looking at other possibilities on their

696
01:04:44,080 --> 01:04:49,640
operational shifts and other areas to how to create those efficiencies with a goal to minimize

697
01:04:49,640 --> 01:04:57,760
or to realize some savings. Also in the fire department, the other large piece in the room here,

698
01:04:57,760 --> 01:04:59,980
We are about to come to you.

699
01:05:00,000 --> 01:05:08,280
Council with a contract to conduct an organizational assessment that will look at their operations with

700
01:05:08,280 --> 01:05:13,060
the goal to have something completed by the end of this year and start implementing as early

701
01:05:13,060 --> 01:05:19,740
as January. Again, to understand the minimum staffing, to understand how we manage fire

702
01:05:19,740 --> 01:05:24,600
in its entirety, but again, it's a very large body of work and we already began in those

703
01:05:24,600 --> 01:05:32,300
to pieces. Now it's a matter of, next for me is the library because that's a very important

704
01:05:32,300 --> 01:05:37,500
body of work. And then I'm looking at each of the respective department directors who

705
01:05:37,500 --> 01:05:43,540
will be engaging in their own pieces as well. Okay. Okay. Thank you. Yeah. So I understand

706
01:05:43,540 --> 01:05:48,880
that work will continue. Okay. So then the other question I had is around the sort of liquid

707
01:05:48,880 --> 01:05:53,300
versus non-liquid reserves. So, you know, given that slide that you did, so if we, you know,

708
01:05:53,300 --> 01:05:57,300
So in previous iterations we counted the 10 million as part of the reserve.

709
01:05:58,020 --> 01:06:01,600
So and then there was the question about liquid versus non-liquid availability.

710
01:06:02,080 --> 01:06:05,780
And my understanding there was sort of like an audit that allowed that practice to happen

711
01:06:05,780 --> 01:06:10,260
and that was sort of past practices that we had some liquid, some non-liquid in there.

712
01:06:10,400 --> 01:06:14,060
So right now are you saying that if we did it in the previous version it would actually be

713
01:06:14,060 --> 01:06:18,060
like 41.6 million reserve we'd be looking at, is that what that slide meant?

714
01:06:19,680 --> 01:06:27,860
Yes. So you have $41.6 million in reserves. However, what's spendable to use the audit in term, spendable versus non-spendable?

715
01:06:28,080 --> 01:06:33,240
What is spendable today is $31.6. You cannot spend that 10 million because it's obligated.

716
01:06:33,700 --> 01:06:39,200
Okay. Right. And so then we're saying the deficit then would take $12.6 million out of the $31.6.

717
01:06:39,380 --> 01:06:39,580
Correct.

718
01:06:40,000 --> 01:06:44,760
But in previous iterations of how we did budgeting, it would be $12.6 million out of $41.6.

719
01:06:45,120 --> 01:06:45,340
Correct.

720
01:06:45,340 --> 01:06:53,540
I mean, I guess what I'm getting at is it does look bad, and I'm for trying to get to a liquid

721
01:06:53,540 --> 01:06:58,180
and actual spendable reserve, but given, you know, the disparity between what that percentage

722
01:06:58,180 --> 01:07:03,900
would have looked like in the past and what it looks like now, is it, um, I don't know what I'm asking

723
01:07:03,900 --> 01:07:07,720
except that I want to make sure, and I want to do that work to move forward, but given the way

724
01:07:07,720 --> 01:07:10,540
we were sort of doing it for and moving forward, the disparity in that percentage,

725
01:07:10,540 --> 01:07:14,140
it looks much more drastic than it would have a few months ago when we were accepting

726
01:07:14,140 --> 01:07:16,820
the $10 million as spent as the reserve.

727
01:07:18,080 --> 01:07:21,400
If you counted the non-spendable obviously that percentage would go higher and it would

728
01:07:21,400 --> 01:07:27,040
probably be about 18% in my understanding but because that is obligated it's non-spendable

729
01:07:27,040 --> 01:07:28,640
it is now 14%.

730
01:07:30,500 --> 01:07:35,080
No, no, no, I understand that I'm just saying as far as comparing percentages between now

731
01:07:35,080 --> 01:07:38,580
and then I just want to make sure we're allowing for that because it really was it's more of

732
01:07:38,580 --> 01:07:44,060
it was more of a sort of budget, you know, and again allowable by audit so I want to make

733
01:07:44,060 --> 01:07:47,020
make sure we're sort of not saying, like, oh my God, how did we get to this place?

734
01:07:47,020 --> 01:07:49,320
When actually we were accepting that as a practice in the past.

735
01:07:49,880 --> 01:07:52,780
Even though I understand going forward, we're trying to change that practice, is that right?

736
01:07:53,880 --> 01:07:54,140
Correct.

737
01:07:54,440 --> 01:07:58,060
So, what I want council, as you're driving home tonight, what do you have to spend tonight?

738
01:07:58,220 --> 01:07:58,940
Which you do as a council?

739
01:07:59,560 --> 01:08:00,200
31.6.

740
01:08:00,460 --> 01:08:00,540
Yeah.

741
01:08:01,360 --> 01:08:02,320
No, I understand that.

742
01:08:02,380 --> 01:08:05,100
I'm just, you know, because we've had a lot of discussion around this, and we're going

743
01:08:05,100 --> 01:08:07,900
to change this going forward, and I think we're making a priority to change it.

744
01:08:08,260 --> 01:08:12,820
I just want to make sure we're not getting too off on given what we accepted in the past.

745
01:08:12,820 --> 01:08:21,520
And you know, and it was just the way we did it then and my understanding that was an allowable by an outside accounting auditing as well. Yeah. Okay. Thank you.

746
01:08:23,200 --> 01:08:27,660
Okay. So I just wanted I just wanted to clear that out because I want to make sure we're being real about that.

747
01:08:29,880 --> 01:08:34,320
Okay. And then on the ARPA funds. So I know that those are one time funds.

748
01:08:36,120 --> 01:08:37,280
And but my understanding that our

749
01:08:37,280 --> 01:08:41,340
Profunds for one time funds used for one time projects and that that's over with.

750
01:08:41,660 --> 01:08:44,260
So it wasn't necessarily, so it cracked me for a long.

751
01:08:44,800 --> 01:08:48,160
If there was $4 million, we didn't throw that in the general fund and

752
01:08:48,160 --> 01:08:49,280
use that to budget anything.

753
01:08:49,460 --> 01:08:50,500
We use it for one time firm.

754
01:08:50,640 --> 01:08:53,960
So shouldn't that be like a zero impact on the budget?

755
01:08:54,840 --> 01:08:56,320
We used our Profunds last year.

756
01:08:56,340 --> 01:08:57,480
We actually put it into our reserves.

757
01:08:58,000 --> 01:08:59,760
So yes, we did not use it on operating expenses.

758
01:09:00,420 --> 01:09:01,400
Sorry, the year that we're in now.

759
01:09:01,760 --> 01:09:02,000
Okay.

760
01:09:02,620 --> 01:09:05,420
Okay, and for a million dollars worth, we put that in the reserve last year.

761
01:09:06,260 --> 01:09:09,180
Okay, and we've been using that, I guess, as yeah, okay.

762
01:09:09,720 --> 01:09:15,980
Okay, I just want, because my understanding is we didn't use it as sort of ongoing funds to balance our budget last year.

763
01:09:16,920 --> 01:09:19,720
Yeah, there were several uses for upper funds, and you are correct,

764
01:09:20,020 --> 01:09:24,820
pro-tem, pro-tem, roach that generally those funds were used for one time projects.

765
01:09:25,040 --> 01:09:29,200
But one other acceptable use for upper funds was the replacement of lost revenue.

766
01:09:29,200 --> 01:09:35,700
And so we did put $4.5 million into the general fund reserves for that particular purpose.

767
01:09:36,280 --> 01:09:40,440
Okay, but we wouldn't have projected, you know, that five year look back we did at one point.

768
01:09:40,720 --> 01:09:42,740
We wouldn't have projected another $4 million there, right?

769
01:09:42,940 --> 01:09:44,840
No, that would have been pulled out.

770
01:09:45,260 --> 01:09:45,420
Okay.

771
01:09:46,840 --> 01:09:52,800
And then the other question I had was around the UUT, and I know Dr. Mary's in here,

772
01:09:53,200 --> 01:09:57,900
that there's this question about how many data centers we're going to end up with in the city.

773
01:09:57,900 --> 01:09:59,980
and what impact will...

774
01:10:00,000 --> 01:10:04,660
You know, like two to four data centers have in the city to the UUT as

775
01:10:07,030 --> 01:10:25,290
far as looking at revenue. Director Amiri, if you're comfortable, Dr. Amiri has a kind of a measure to say for every data center could bring us in X amount of dollars. And he can mention that. Thank you. Just I know there's a lot of talk around it around the whole region. And so I'm assuming what that impact has.

776
01:10:31,670 --> 01:10:37,950
Thank you for the question. There are currently two data centers that are operating right now.

777
01:10:37,950 --> 01:10:45,090
right now. They are on corporate avenue in the industrial area. There is one data center

778
01:10:45,090 --> 01:10:50,650
that has been constructed and equipment is being placed in it and is going to start

779
01:10:50,650 --> 01:10:56,150
the operation soon and there is a fourth one that is in the planning stage right now.

780
01:10:56,950 --> 01:11:03,370
The one that is going to go into operation right now has a capacity based on the literature

781
01:11:03,370 --> 01:11:06,710
that they have seen, 49 megawatt.

782
01:11:07,130 --> 01:11:11,230
So based on assumptions, we don't have any solid information.

783
01:11:11,790 --> 01:11:14,890
But based on the assumptions that I have made,

784
01:11:15,490 --> 01:11:26,010
the amount of electricity that they have to purchase to run this data center is about $40 million a year.

785
01:11:26,770 --> 01:11:31,630
So the UIT on that will be just over $2 million a year for

786
01:11:31,630 --> 01:11:33,330
for this one data center.

787
01:11:33,830 --> 01:11:35,370
Okay, and did we include that?

788
01:11:35,550 --> 01:11:36,750
Is that projected in the budget?

789
01:11:37,030 --> 01:11:38,870
It is not projected in the budget.

790
01:11:39,130 --> 01:11:41,570
Okay, so that's potentially just for the one new center.

791
01:11:41,750 --> 01:11:42,910
And then there's the second one coming on.

792
01:11:42,910 --> 01:11:43,790
That's even bigger, right?

793
01:11:44,550 --> 01:11:47,650
Correct, but that is in the planning stage right now.

794
01:11:48,390 --> 01:11:49,870
And then is there on top of the U.T.

795
01:11:50,210 --> 01:11:52,190
Is there my understanding there's also maybe sales tax

796
01:11:52,190 --> 01:11:54,890
that comes off on the data centers as well?

797
01:11:55,090 --> 01:11:55,350
Is that right?

798
01:11:55,570 --> 01:11:57,310
I don't know about sales tax,

799
01:11:57,450 --> 01:11:59,470
but there is definitely property tax

800
01:11:59,470 --> 01:12:03,190
when they use a new data center constructed,

801
01:12:03,610 --> 01:12:06,170
and these are multi-million dollar,

802
01:12:06,370 --> 01:12:10,490
multi tens of million dollars in terms of valuation.

803
01:12:11,230 --> 01:12:14,150
Okay, and then do you think that by the fall

804
01:12:14,150 --> 01:12:17,650
will have a better idea of what that UT really looks like?

805
01:12:17,770 --> 01:12:19,830
I mean, because that's a significant increase, right,

806
01:12:19,930 --> 01:12:21,870
and revenue, if it brings in,

807
01:12:22,010 --> 01:12:23,470
if one data center brings in two million

808
01:12:23,470 --> 01:12:24,750
and then a potential other one,

809
01:12:25,090 --> 01:12:26,470
that's much bigger, right?

810
01:12:26,590 --> 01:12:28,630
Is the, I know you don't want to speculate,

811
01:12:28,630 --> 01:12:32,770
But the one that the planning went is that double the size of the one that's about to be built.

812
01:12:33,390 --> 01:12:40,730
So the one that is coming on online, I don't know exactly what the score footage is.

813
01:12:40,890 --> 01:12:46,850
But the one that's in planning, the score footage is 320,000 square feet.

814
01:12:47,630 --> 01:12:55,470
And just to give you an idea, the largest cost goal that you have been into is about 160,000 square feet.

815
01:12:55,470 --> 01:13:04,010
so this is twice as large, 94-foot high, so as high as a nine-story building, so it's huge.

816
01:13:04,590 --> 01:13:08,390
So it could be a significant revenue that we are not currently budgeting for.

817
01:13:08,850 --> 01:13:09,210
Correct.

818
01:13:09,490 --> 01:13:13,050
Okay, and already one, we're not budgeting for that we know is going to come online.

819
01:13:13,490 --> 01:13:13,850
That's right.

820
01:13:14,090 --> 01:13:21,390
Okay, thank you, that's helpful, as far as being slightly hopeful in this budget of worrisome news,

821
01:13:21,390 --> 01:13:23,470
that that is potentially hopeful revenue.

822
01:13:24,490 --> 01:13:24,570
Okay.

823
01:13:24,610 --> 01:13:24,870
Okay.

824
01:13:25,750 --> 01:13:26,350
Thank you, Dr. Mary.

825
01:13:29,350 --> 01:13:29,670
Okay.

826
01:13:29,790 --> 01:13:30,790
I want to see if there's anything.

827
01:13:30,970 --> 01:13:31,230
Let's see.

828
01:13:31,410 --> 01:13:31,490
Okay.

829
01:13:31,590 --> 01:13:35,930
I think that might be all I have right now.

830
01:13:36,090 --> 01:13:36,290
Let's see.

831
01:13:37,190 --> 01:13:39,450
Oh, on the bar, the bar car sales tax.

832
01:13:40,690 --> 01:13:41,730
I didn't know that.

833
01:13:42,910 --> 01:13:45,510
On our five-year projections that we looked at before,

834
01:13:45,670 --> 01:13:47,090
you got to, and believe me, I understand it.

835
01:13:47,190 --> 01:13:47,810
I'm Director Edmund.

836
01:13:48,290 --> 01:13:49,450
You know, you came on two months ago.

837
01:13:49,450 --> 01:13:56,230
So you're, questions from the past and I understand you're doing amazing work to get us to this budget, so thank you.

838
01:13:56,770 --> 01:14:03,150
But on the five year look back, did we project that this bar car sales tax was going to go away?

839
01:14:06,420 --> 01:14:10,380
Not to the extent that it was, I understand there's always some factor in there.

840
01:14:10,600 --> 01:14:15,640
However, a million dollars gets buried very fast within $80 million of projections moving forward.

841
01:14:15,840 --> 01:14:19,740
That $1 million turned into $2 million and literally the phone call came from,

842
01:14:19,740 --> 01:14:25,380
We had another meeting with our consultants, I think like two days before we were publishing the budget that was actually $4 million.

843
01:14:25,860 --> 01:14:29,220
So it's been in the works that the analysis comes from outside analysis.

844
01:14:29,460 --> 01:14:34,260
And so no, there was not a projection that was up to $4 million in that loss of the barcode.

845
01:14:34,340 --> 01:14:39,980
And that loss, so we were still projection sales tax with that $4 million as expected, okay.

846
01:14:40,460 --> 01:14:47,720
So just looking at budgeting, is that sort of an oversight, did we know it was going to end one day or we just didn't know when, so we kept projecting it?

847
01:14:48,220 --> 01:14:49,240
I couldn't answer that.

848
01:14:50,220 --> 01:14:50,700
That's great.

849
01:14:50,820 --> 01:14:51,120
Thank you.

850
01:14:52,440 --> 01:14:52,800
Okay.

851
01:14:52,980 --> 01:14:53,440
I think that's it.

852
01:14:53,660 --> 01:14:53,980
Oh, okay.

853
01:14:54,160 --> 01:14:55,220
I think this is my last question.

854
01:14:55,380 --> 01:14:58,860
Then I'll get to their questions on the overtime issue.

855
01:14:59,040 --> 01:14:59,860
So we talked.

856
01:15:00,000 --> 01:15:12,920
But the fire is a overtime issue, but that was just part of an overall $15 million overtime, you know, budget that we have in the city. Our other departments doing the same work that fire did to try to find a way to reduce that overtime.

857
01:15:16,440 --> 01:15:32,480
Is that maybe a city manager question? No, they did not. We have not done that work yet. Okay, and will that be part of the work to try to get us to the fall. So overtime is something that can be managed in many different ways in that also includes the consideration of the services and how we schedule

858
01:15:32,480 --> 01:15:36,180
people around the services, so that's part of the evaluation process.

859
01:15:36,600 --> 01:15:38,980
And is any, could any of that work done before the June 3rd budget?

860
01:15:39,160 --> 01:15:44,440
I mean, because it seems like even if we got to, I mean, $15 million a lot if we were able to reduce that by 2 million effect.

861
01:15:44,700 --> 01:15:51,920
I mean, to me, that seems like a right-of-way kind of work, because I hear you that the core services discussion is going to take longer because we have to understand the impact of that.

862
01:15:52,260 --> 01:16:01,520
But something like looking at, you know, the overtime hours seems like that could be done a little bit more quickly in some departments, not all departments, and maybe we could find $2 million before we get to June 3rd.

863
01:16:01,520 --> 01:16:08,500
Okay, and then maybe if it's true that this one data center is coming online this year and we know it is and we can protect even a million dollars

864
01:16:08,500 --> 01:16:10,800
That would help cut down that 12.6 as well.

865
01:16:10,800 --> 01:16:14,240
That's what I was before he left Alex left. I just wanted to understand the timing.

866
01:16:14,540 --> 01:16:16,680
Yeah, so timing really matters here.

867
01:16:16,780 --> 01:16:19,300
Yeah, right, as far as when the UT starts coming in.

868
01:16:19,380 --> 01:16:21,200
Okay, all right, thank you, that's all I have now.

869
01:16:21,300 --> 01:16:25,580
Thank you so much, director. I'm in your staff and everyone that's worked on this. I appreciate it.

870
01:16:25,600 --> 01:16:25,880
Thank you.

871
01:16:26,400 --> 01:16:26,860
Thank you.

872
01:16:26,860 --> 01:16:26,900
Thank you.

873
01:16:27,500 --> 01:16:28,540
Councilor Zermenio.

874
01:16:29,900 --> 01:16:36,940
Mayor, thank you and thank you, Mr. Edmund and the finance team out there in the audience.

875
01:16:38,260 --> 01:16:42,140
You did a very good job with this and I do have a couple of questions in some comments.

876
01:16:43,500 --> 01:16:43,940
Let's see.

877
01:16:47,730 --> 01:16:54,070
On the slide on the overtime, I'm not sure I did understand the firefighters.

878
01:16:54,070 --> 01:17:05,210
There's a decrease from 7 to 3.5, but then the next one talked about the other overtime being 15 million to 1.5.

879
01:17:05,950 --> 01:17:09,790
So is that included within the firefighter?

880
01:17:09,970 --> 01:17:11,170
I got lost in the math.

881
01:17:11,950 --> 01:17:18,850
We went from 7 to 3 and then the second line went from 15 million to 11.5.

882
01:17:19,090 --> 01:17:20,830
Can you clarify that for him, please?

883
01:17:20,830 --> 01:17:41,030
Yes, thank you councilmember the overall overtime for the city of Hayward the running it's about $15 million that's for that's for all or the entire organization if we reduce the $3.5 million from fire that's your $11.5 million and so that that's the total then you look at the fire department, which is a $7 million going to 3.5

884
01:17:41,030 --> 01:17:47,510
All right, so the 11.5 should not be lower, it's at 11.5, okay, all right.

885
01:17:47,850 --> 01:17:55,410
And then one of your earlier slides spoke of reserves being used for specific purpose.

886
01:17:55,950 --> 01:18:03,490
In my mind, reserves are for emergency, so I'm not sure why we include specific purposes

887
01:18:03,990 --> 01:18:06,590
as expenditures for the reserves.

888
01:18:07,230 --> 01:18:08,990
I'd like to see it for emergencies.

889
01:18:09,490 --> 01:18:09,990
Any comment?

890
01:18:09,990 --> 01:18:15,410
Or is just just new way to so council members the menu your reserves are at council discretion

891
01:18:15,410 --> 01:18:17,530
And you get to define what an emergency is

892
01:18:17,530 --> 01:18:23,570
And so you can define an emergency as an earthquake. You could define an emergency as building a bridge tomorrow or feet on the homeless

893
01:18:23,570 --> 01:18:27,130
What and that's up that's at your discretion. That's a policy change you can make as well

894
01:18:27,130 --> 01:18:30,670
But especially at your discretion that council discretion. All right. Okay. Thank you

895
01:18:30,670 --> 01:18:35,650
So I'm thinking like my colleague Roshear and a couple of other points

896
01:18:36,730 --> 01:18:40,490
So, we have reserves at $41.31.

897
01:18:42,690 --> 01:18:47,810
We have a cinema for which we paid $10 million, and we

898
01:18:47,810 --> 01:18:54,890
lent $2 million to the garage. So, in my mind, we have a reserve of $43 million.

899
01:18:55,570 --> 01:19:01,170
In my mind, spendable or unspendable really make no difference. We still have a reserve of

900
01:19:01,170 --> 01:19:06,170
$43 million, whether it's spendable or not spendable, it's still a reserve.

901
01:19:06,470 --> 01:19:08,570
So how wrong am I on this?

902
01:19:09,710 --> 01:19:15,770
So council members and men, let's use an example of a bridge collapse.

903
01:19:16,490 --> 01:19:18,710
At two o'clock in the morning, no one's on it, everybody's fine.

904
01:19:19,330 --> 01:19:22,590
A bridge collapses and the bridge costs $50 million through place.

905
01:19:23,050 --> 01:19:26,710
You don't have $50 million through place that bridge in one swoop.

906
01:19:26,710 --> 01:19:36,310
If the bridge was $31.6 million, the council could decide to spend the $31.6 million, that money is in the bank, could write a check and buy the bridge tomorrow.

907
01:19:37,070 --> 01:19:42,930
If the bridge was $41.6 million, you don't have that, it's not spendable, that $10 million is already obligated.

908
01:19:43,410 --> 01:19:47,370
So if you have a $40 million bridge, you wouldn't be able to write a check for it tomorrow.

909
01:19:47,790 --> 01:19:56,070
You have $31.6. So at your discretion tonight tomorrow for the lack of the better terms, you have $31.6 million.

910
01:19:56,070 --> 01:19:59,350
So perhaps we may need to

911
01:20:00,000 --> 01:20:29,580
Do two reserve lines, one, spendable reserves and unspendable reserves, because in my mind, we have $12 million in reserves, aside from the $31 million. So, maybe that's something to consider. All right. And then the other one that I wanted to discuss, because I agree with the questions by my colleague, Roche. We should not be including Bart and Arpa at all in this equation,

912
01:20:29,580 --> 01:20:32,500
because they don't exist anymore.

913
01:20:33,200 --> 01:20:36,840
It'd be like saying, well, we're not going to get $3 million

914
01:20:36,840 --> 01:20:41,860
from Newsom for fighting homelessness.

915
01:20:42,740 --> 01:20:45,360
So it's not there, why even include it?

916
01:20:45,520 --> 01:20:49,120
So that's one point that I wanted to bring out,

917
01:20:49,260 --> 01:20:51,320
and I agree with my colleague who asked a question.

918
01:20:51,980 --> 01:20:54,160
And then I do have some comments.

919
01:20:54,860 --> 01:20:56,760
A full rewrite is excellent.

920
01:20:56,760 --> 01:21:05,860
very good. Thank you very much. A couple of points. We mitigation of strategies and outlines

921
01:21:05,860 --> 01:21:15,360
encourage staff council. No, it's encourage staff council and community feedback on the budget.

922
01:21:15,360 --> 01:21:22,340
I think that's tremendous. Make sure that we do that and we follow through. Measure thoughtful

923
01:21:22,340 --> 01:21:30,560
approach very good so let's make sure that we do that 100% and of course we know

924
01:21:30,560 --> 01:21:37,960
that our residents are worried about housing and about homelessness and

925
01:21:37,960 --> 01:21:43,440
crime and streets and trash and in my mind those are excellent and we have

926
01:21:43,440 --> 01:21:49,780
been working on those and we will keep working on those all right so over time

927
01:21:51,660 --> 01:21:57,800
So, vacancy savings, 5% equals about $8 million is what I heard.

928
01:21:58,200 --> 01:22:00,460
That's $9.8 million, council member.

929
01:22:01,200 --> 01:22:01,880
Okay, all right.

930
01:22:03,680 --> 01:22:10,840
And vacancy management, for many, we're from half a million to a million.

931
01:22:11,600 --> 01:22:19,240
Is that part of the vacancy savings or is that a different formula?

932
01:22:21,440 --> 01:22:33,940
It depends on how you look at it, it'd be above and beyond that 5%, so if you're actively, if you're proactively holding positions now you're going to realize even more savings than just the 5%.

933
01:22:33,940 --> 01:22:37,840
So the more you hold positions, financially speaking, the more you're going to save.

934
01:22:37,840 --> 01:22:48,780
Okay. All right. Okay. Let's see. Cinema. City Manager, how about this? Do we receive

935
01:22:48,780 --> 01:22:55,260
any income from the cinema that we own? Yes, we do. Councilmember Sir Manu, and I'm glad

936
01:22:55,260 --> 01:23:01,600
to report that we have all of the spaces occupied, so we're currently fully occupied.

937
01:23:01,600 --> 01:23:13,060
Okay, is that income taken to pay the loan that we took out or is that income part of the general fund income?

938
01:23:13,320 --> 01:23:21,160
It's meant to pay for the loan and we're going to be calling the meeting of the Hayward Economic Development Committee

939
01:23:21,160 --> 01:23:25,580
to be able to go over the finances, very soon.

940
01:23:26,320 --> 01:23:31,460
All right, okay, I thank you for a good report and I thank you for the good works

941
01:23:31,460 --> 01:23:35,800
especially in my basketball buddy over there Nick and Mayor, thanks a lot.

942
01:23:36,520 --> 01:23:38,140
Thank you. Council member, sorry.

943
01:23:40,060 --> 01:23:42,980
Thank you, Mayor. Thank you very much to you and your team for this report.

944
01:23:43,160 --> 01:23:47,740
I know a lot of work goes into preparing a document of the size and wrangling on the numbers within it.

945
01:23:47,960 --> 01:23:50,120
So I'm just nice to see it all in front of us.

946
01:23:50,160 --> 01:23:55,820
I know there were a lot of open questions during the past year on what this deficit number might look like.

947
01:23:55,940 --> 01:23:57,340
So we could address it head on.

948
01:23:57,340 --> 01:24:02,720
I just want to start by echoing some of the comments that were shared by Council Member

949
01:24:02,720 --> 01:24:05,900
Bonilla, I think, between this budget and the June budget.

950
01:24:06,120 --> 01:24:10,940
I'd like to see a little bit of a change in reflecting some of our cost saving strategies.

951
01:24:10,940 --> 01:24:13,100
I know we're saying that we're pulling all the levers.

952
01:24:13,640 --> 01:24:17,220
I think just as an example and question I'd have is a city attorney if you're available

953
01:24:17,220 --> 01:24:18,560
to say a few words, Michael.

954
01:24:19,640 --> 01:24:24,620
Can you speak to our ability to potentially lower our coverage or change our insurance

955
01:24:24,620 --> 01:24:27,820
coverage to realize some savings as a potential strategy?

956
01:24:40,040 --> 01:24:41,340
Thank you.

957
01:24:42,980 --> 01:24:48,580
As a cost saving strategy, for example, are there any options or opportunities for us to

958
01:24:48,580 --> 01:24:51,260
change our coverage to realize some savings from our general fund?

959
01:24:55,820 --> 01:24:56,460
Press, there you go.

960
01:24:58,950 --> 01:24:59,570
You know I've suggested.

961
01:24:59,570 --> 01:24:59,830
Yes, it.

962
01:25:00,000 --> 01:25:29,820
We do the council and to the finance director that we have had discussions about making some adjustments in our coverage that I know will result in at least $1 million less in our fiscal 26 premium. It could be a little bit more. There's a little bit more work to do on that. But as you know, coverage is very

963
01:25:29,820 --> 01:25:51,500
expensive. It's increased about 600% in the last 10 years, but that's the market. It's driven by general liability police practices exposure and not specifically related to Hayward property coverage also a driver and cyber risk.

964
01:25:51,500 --> 01:26:00,780
those are the three big drivers in coverage and we've tried to make adjustments by increasing

965
01:26:00,780 --> 01:26:10,460
our deductibles over the last few years but that's like saying we're paying the same for less

966
01:26:11,340 --> 01:26:18,380
or we're paying more for less. It's sort of one of the other. It's a very challenging market.

967
01:26:18,380 --> 01:26:19,460
Is that responsive?

968
01:26:19,700 --> 01:26:24,420
That is responsive and so given that there might be an option for us to adjust our coverage

969
01:26:24,420 --> 01:26:28,200
to realize a million dollars in savings, would it be possible for those savings to be

970
01:26:28,200 --> 01:26:32,100
realized and reflected in the next budget update by June or is that something that would

971
01:26:32,100 --> 01:26:36,440
have to appear by the revise and fall and just trying to see how we can make some progress

972
01:26:36,440 --> 01:26:37,480
between now and our next.

973
01:26:37,920 --> 01:26:40,500
We're striving for a July 1st effective date.

974
01:26:40,780 --> 01:26:40,960
Okay.

975
01:26:41,480 --> 01:26:45,760
And given that the budget would go into effect by July, could that be reflected in our June

976
01:26:45,760 --> 01:26:48,920
third meeting that we've somehow been able to incorporate that change?

977
01:26:50,780 --> 01:26:56,360
I don't know who to answer this, I don't know how fast it takes for us to change our policy or if that could be reflected in the next budget presentation.

978
01:26:56,500 --> 01:27:00,240
I don't know, the work needs to be done, but I do want to remind council just a little bit of a reality check.

979
01:27:00,500 --> 01:27:09,680
It's May 13th, the budget is June 3rd, you back up and it has to be posted by the Friday, it's been a week before internally, so it's due next week.

980
01:27:09,880 --> 01:27:15,360
Okay, so we're talking about any changes or discussions that you might be having are asking for the June 3rd portion.

981
01:27:15,360 --> 01:27:18,800
would literally be in the next three business days, or more business days.

982
01:27:18,820 --> 01:27:21,400
This is a little bit of a reality check, doesn't mean that something's going to be done.

983
01:27:22,020 --> 01:27:25,160
And remember, the June 3rd is only as good as what it's printed on.

984
01:27:25,280 --> 01:27:27,260
You could certainly make amendments, you can make revisers to it.

985
01:27:28,260 --> 01:27:32,060
To City Manager Alvarez's point, the budget is always going to be looked at.

986
01:27:32,160 --> 01:27:33,740
We're not going to wait until the fall, right?

987
01:27:33,820 --> 01:27:37,100
And so we can provide memos or updates to the council on what's happening.

988
01:27:37,520 --> 01:27:42,660
But I just don't want you to get hung up necessarily on the June 3rd because of the way we have to agendize it and

989
01:27:42,660 --> 01:27:43,960
post it and review it.

990
01:27:43,960 --> 01:27:59,280
Okay, understood. Well, thank you, City Attorney Lawson. I just wanted to show that we could realize some savings there as well, and anything we can do to reduce this $12.6 million, whether or not it's reflected in June 3rd, or as long as it's going to affect by July 1st, I really want to bring down this $12.6 million number that I'm hearing.

991
01:28:00,720 --> 01:28:07,200
Something else I wanted to ask was CDBG funding. I know we were waiting for a while to receive that. Have we since received it since applying?

992
01:28:10,430 --> 01:28:18,230
So we're up to date on reimbursements for this year, but we have not received from the federal government what our allocation will be for the next fiscal year.

993
01:28:18,550 --> 01:28:26,390
And so our CDBG consultant was targeting May 16th as a date where we would possibly know the answer to that question.

994
01:28:27,070 --> 01:28:29,710
They are expecting it to be a no-growth year.

995
01:28:31,090 --> 01:28:32,210
What kind of year?

996
01:28:32,630 --> 01:28:33,690
A no-growth year.

997
01:28:33,690 --> 01:29:02,270
So pretty much the expectation if funds are released you'll be about the same amount as was released for this current fiscal year and have they been delayed or is this the regular timeline and it's generally delayed but this is delayed more than their typical okay okay understood okay thank you please keep us posted on the status of those funds in line with wanting to reduce this deficit when we do have the fall revise I would appreciate if we had a strategy that came with it.

998
01:29:03,250 --> 01:29:06,990
We're throwing out a lot of different suggestions tonight on ways in which we could reduce this number.

999
01:29:07,090 --> 01:29:10,030
Something I'd like for us to look at that was on a prior strategic road map.

1000
01:29:10,210 --> 01:29:13,410
And I don't know if it was kind of delivered to the council or

1001
01:29:13,410 --> 01:29:19,010
prioritized by the end of its time on the road map was revisiting old ordinances as revenue generating opportunities.

1002
01:29:19,010 --> 01:29:21,610
This is kind of in line with what council member Andrews was talking about.

1003
01:29:22,270 --> 01:29:28,130
I know we have a maybe outdated cabaret ordinance that makes it illegal to dance where drinks are being served.

1004
01:29:28,990 --> 01:29:30,050
I don't know if that's still an effect.

1005
01:29:30,050 --> 01:29:41,190
I know we have a 50% revenue has to come from food sales if you're selling alcohol which scares away a lot of businesses in my prevent increased economic development in our downtown.

1006
01:29:41,470 --> 01:29:44,370
I think we're the only city in the area that has that regulation in place.

1007
01:29:45,030 --> 01:29:49,770
So I just want to know where are we getting in our own ways or in our own way.

1008
01:29:49,830 --> 01:29:53,290
It also would like to know what have we not looked at or dust off in a long time.

1009
01:29:53,290 --> 01:29:59,530
So, if I'm not mistaken, we might have a business license tax that's currently in place that comes from

1010
01:30:00,000 --> 01:30:29,640
In 1975, and I mean, this is like, I don't know, date myself about 20 years before I was born. And if we haven't updated it since then, maybe it's time for us to look around and say, could we be charging a little bit more to help sustain our operations and not run ourselves into a deficit. So really putting kind of all these policies on the table, doing some deep diving into what options might be worth pursuing, especially now that K1 is in the rear view, and we have some more bandwidth as a city to pursue new measures. I think that would be helpful to have on the table and fall when we do this revise.

1011
01:30:29,640 --> 01:30:37,320
So, it's not just we have this deficit, but here are a menu of options that we can take proactively to begin exploring new revenue generation opportunities.

1012
01:30:40,240 --> 01:30:48,200
I think the last thing I wanted to add is I really appreciated looking at the different metrics and objectives of each department inside of the budget.

1013
01:30:48,780 --> 01:30:54,360
I think this is the part of the presentation that I miss. Everyone feels so far away today. Usually we do this in the 2A room.

1014
01:30:54,360 --> 01:31:17,360
But my hope would be at some point, I don't mind us doing this in this room, but it would be nice not necessarily to do the same templated five slides as last time, but maybe for departments to talk through their metrics and their objectives and why they're important to the department so we can make sure there's alignment between our strategic priorities and what your department sees as performance objectives and find that synergy for lack of a better term.

1015
01:31:18,300 --> 01:31:27,060
And then I just want to be really careful about not cutting community services too deeply, or at all, as we look at saving or reducing this deficit.

1016
01:31:27,960 --> 01:31:41,460
Money that we spend on community services is preventative, and it's an investment, and I think it saves us a lot of money downstream, so I just want us to be really strategic, and as we know we all are being, as we try to approach this and wrangle restoring our reserve.

1017
01:31:41,460 --> 01:31:43,740
I think I'll leave my comments there.

1018
01:31:44,640 --> 01:31:47,540
I gave a lot of commentary at the Budget and Finance Committee meeting, but

1019
01:31:47,540 --> 01:31:49,500
really, again, appreciate the work that went into this.

1020
01:31:49,700 --> 01:31:55,100
And look forward to seeing the June budget, as well as the strategies presented during the revise.

1021
01:31:55,440 --> 01:31:55,980
Thank you.

1022
01:31:59,000 --> 01:32:00,140
Council Member Goldstein.

1023
01:32:00,620 --> 01:32:01,240
Yeah, thank you.

1024
01:32:02,640 --> 01:32:03,860
Thank you for the report.

1025
01:32:04,560 --> 01:32:13,100
I'm glad to see that our finance department continues this long tradition of producing excellent results in accuracy with our finance.

1026
01:32:13,100 --> 01:32:15,620
There's always going to be wrinkles, it happens.

1027
01:32:16,940 --> 01:32:22,400
And I just appreciate the hard work and effort that goes into producing these reports.

1028
01:32:24,180 --> 01:32:35,100
You know, business development and events really is a hot topic because those two things are drivers of sales tax revenue and property tax.

1029
01:32:35,680 --> 01:32:40,680
And I think we need to be mindful of that.

1030
01:32:40,680 --> 01:32:50,700
And I remember having a conversation with Paul Nguyen, I forgot what his title is Chief Heatsenambig development.

1031
01:32:50,820 --> 01:32:52,600
Chief economic development officer.

1032
01:32:52,820 --> 01:32:54,200
Okay, thank you, appreciate that.

1033
01:32:54,940 --> 01:33:10,660
And Paul said that he produced a report listing out the variety of things that he feels that if we slip streamed those things it would really empower him and his unit to bring more business to the city.

1034
01:33:10,660 --> 01:33:18,360
city. I have not seen that report and so I'm wondering if you have that report can you

1035
01:33:18,360 --> 01:33:23,080
share it with city council? Certainly. I have not seen the report

1036
01:33:23,080 --> 01:33:27,380
this the first time I'm here and I'll be very interested to see in it and share it

1037
01:33:27,380 --> 01:33:30,840
with you. Okay good because you know he's got some really

1038
01:33:30,840 --> 01:33:35,760
good ideas. He highlighted a couple of them to me and I just not brilliant. You know yes

1039
01:33:35,760 --> 01:33:45,740
it sounds like we should be able to do it, and that conversation was when Sprout's opened

1040
01:33:45,740 --> 01:33:52,080
and so that's been a few months and so I think it's time that we dig into that and bring that

1041
01:33:52,080 --> 01:33:57,940
to the surface and see what we can do. Those economic development opportunities are right in our

1042
01:33:57,940 --> 01:34:04,840
neighborhood. We have the place for it, we have the demand for it, our residents want it, so it's

1043
01:34:04,840 --> 01:34:07,520
really, if we're getting in our own way, shame on us.

1044
01:34:08,180 --> 01:34:08,940
No, absolutely.

1045
01:34:09,240 --> 01:34:10,480
And thank you for bringing that forward

1046
01:34:10,480 --> 01:34:13,320
because our economic development team in Hayward,

1047
01:34:13,480 --> 01:34:14,340
it's amazing.

1048
01:34:14,620 --> 01:34:15,800
It's an award-winning team.

1049
01:34:16,340 --> 01:34:18,240
And there's a lot that that team really does.

1050
01:34:20,180 --> 01:34:21,960
And I'm sorry that he's not here today.

1051
01:34:22,160 --> 01:34:23,840
He was coming back from getting some awards.

1052
01:34:25,540 --> 01:34:28,820
But certainly, Paul would be here at the next meeting

1053
01:34:28,820 --> 01:34:29,920
when we consider the budget.

1054
01:34:29,920 --> 01:34:32,480
And I'll be having conversations with him before June.

1055
01:34:33,260 --> 01:34:33,680
OK, great.

1056
01:34:33,680 --> 01:34:35,320
All right, so I'll look forward to seeing that.

1057
01:34:37,180 --> 01:34:39,460
I think we need to invest in technology.

1058
01:34:40,620 --> 01:34:46,260
I realize that technology is one of those topic areas where people tend to think,

1059
01:34:46,580 --> 01:34:49,740
oh, we could save money by just not spending money on technology.

1060
01:34:50,300 --> 01:34:54,560
But that's a kind of a, it's a, it's a chicken and an egg thing, right?

1061
01:34:54,780 --> 01:34:59,860
If you don't make the investment, you don't benefit from what those investments bring you.

1062
01:34:59,860 --> 01:34:59,980
You

1063
01:35:00,000 --> 01:35:29,980
And those benefits are usually less stress for the people that are doing the work because they're usually better tools that help enable us to deliver a better service to the community and to the city. But principally in the area of cybersecurity, we can't take our foot off the gas. I'm telling you, I've 25 year career in cybersecurity, I can tell you the bad guys do not take their foot off the gas. They're looking for those organizations that do take their foot off the gas.

1064
01:35:29,980 --> 01:35:37,160
put off the gas and they find the weak link in the chain in the packet and we can't afford to do that.

1065
01:35:37,760 --> 01:35:40,580
And so cyber security needs to remain a top priority.

1066
01:35:41,980 --> 01:35:48,360
But it really does also increase our ability to deliver quality services to our residents.

1067
01:35:49,160 --> 01:35:54,260
And as the mayor has said, our city, our residents deserve the best.

1068
01:35:54,260 --> 01:36:03,060
And so if there's, we should not just take that and just discard that because we think we're going to save money.

1069
01:36:03,500 --> 01:36:04,960
In my opinion, it's a fool's errand.

1070
01:36:05,460 --> 01:36:14,600
Similarly, an infrastructure for the reasons that my colleagues have expressed, we have to continue to do infrastructure improvements.

1071
01:36:14,940 --> 01:36:20,100
In part because people like to shop, they like to spend money where they feel comfortable.

1072
01:36:20,100 --> 01:36:25,940
and feeling comfortable isn't just about the immediate space where they walk into the restaurant,

1073
01:36:25,940 --> 01:36:29,840
but it's the whole experience of getting there. It's traveling on the roads,

1074
01:36:30,020 --> 01:36:35,600
it's the lighting, it's the trees, it's, you know, everything worked, you know.

1075
01:36:36,520 --> 01:36:40,480
When you think about it, when you go to the shopping areas where you like to shop,

1076
01:36:41,180 --> 01:36:45,340
just think about what that's like. Doesn't Hayward deserve shopping like that?

1077
01:36:45,340 --> 01:36:49,220
Now, I'm not a big shopper, but I'm advocating for you who are.

1078
01:36:51,860 --> 01:37:00,060
Housing and homelessness, one of the areas where we can do a better job without spending more money is just better coordination.

1079
01:37:00,840 --> 01:37:06,140
And so I've had conversations with Aaron Horner and some of the other partners in the area.

1080
01:37:06,520 --> 01:37:12,640
And one of the things that was very revealing was that for people that meet certain criteria,

1081
01:37:12,640 --> 01:37:17,260
they get into a HUD program for coordination of benefits.

1082
01:37:17,700 --> 01:37:20,900
But for the people who don't qualify for that program, they don't.

1083
01:37:21,060 --> 01:37:25,640
And it makes it really hard for those people to climb out of that steep ramp.

1084
01:37:26,180 --> 01:37:34,400
And so just having better coordination of benefits for them is going to produce some results without costing us more money.

1085
01:37:34,960 --> 01:37:39,980
In fact, if we measure effectiveness of the programs that we are investing in,

1086
01:37:39,980 --> 01:37:47,480
And so we spent about $2 million, I think, into, I think the numbers 42 community partners.

1087
01:37:47,820 --> 01:37:53,680
If we just simply task ourselves with measuring that effectiveness, maybe we can start to allocate

1088
01:37:53,680 --> 01:37:56,560
the funds where the effectiveness is really happening.

1089
01:37:57,020 --> 01:38:03,240
And so rather than continuing to invest in programs that exist, let's invest in those programs

1090
01:38:03,240 --> 01:38:05,640
that work, that actually achieve results.

1091
01:38:05,640 --> 01:38:10,220
And that may sound a bit harsh, but frankly, we need to do it anyway.

1092
01:38:10,580 --> 01:38:14,840
It's the right thing to do because if we're just spending money that keep people stuck,

1093
01:38:15,200 --> 01:38:19,060
rather than getting them out of stuckness, we're not doing anybody any favors.

1094
01:38:20,000 --> 01:38:22,340
So I'm big on measuring the effectiveness.

1095
01:38:22,860 --> 01:38:26,800
And I really would like to see us return funding to heart when we find the funding for that.

1096
01:38:28,820 --> 01:38:35,060
Getting better control of overtime, fire, thank you for taking that on as a project.

1097
01:38:35,060 --> 01:38:41,180
I know that that's a big thing, and Chief Matthews also looking at operational shifts.

1098
01:38:41,180 --> 01:38:45,660
I think can not only save us some money, but really put people where they need to be.

1099
01:38:46,500 --> 01:38:49,600
Right, our community wants better visibility.

1100
01:38:50,120 --> 01:38:56,580
And if we can achieve better visibility and achieve better results with less money going out the door, all the better.

1101
01:38:57,240 --> 01:39:03,840
And I hope that our partners at the HPOA agree with that strategy.

1102
01:39:03,840 --> 01:39:10,220
and take that on as a challenge, as a way to improve our service to the community.

1103
01:39:11,720 --> 01:39:18,580
Data Center, UUT, it wasn't even thinking along those lines, so thank you for bringing that up.

1104
01:39:18,840 --> 01:39:23,220
I would like to caution, though, that bringing those data centers online,

1105
01:39:23,220 --> 01:39:29,000
I find it hard to believe that it's going to be 49 megawatts from day one when they open that data center.

1106
01:39:29,180 --> 01:39:31,100
I imagine it may take them a few years.

1107
01:39:32,740 --> 01:39:50,480
So just be cautious of that and hopefully director Amiri, when we meet again, you might be able to kind of give us a time frame of what their expectations are, but I have to imagine a three story 90-foot tall, 300-thousand square foot facility is probably not going to get filled on day one.

1108
01:39:50,480 --> 01:39:52,300
that might take them a few years.

1109
01:39:52,940 --> 01:39:56,020
In fact, I've personally managed data centers

1110
01:39:56,020 --> 01:39:58,860
and I've been in and out of data centers

1111
01:39:58,860 --> 01:39:59,920
from post to my career.

1112
01:40:00,000 --> 01:40:18,420
And there are some that have been around for years that aren't full. So just be mindful of that, so it looks good. And we do have infrastructure costs associated with those facilities too, right? And those infrastructure costs come out of general fund or those come out of a different fund.

1113
01:40:26,340 --> 01:40:32,480
Sorry, I was trying to save you the trouble of having to come back up but since you're up here, thank you very much.

1114
01:40:37,290 --> 01:40:44,170
So Council Member Goldstein, these data centers do not have too many employees.

1115
01:40:45,410 --> 01:40:51,550
The number is around 30 employees including security guards and so on.

1116
01:40:52,250 --> 01:40:58,810
So there is not much impact in terms of traffic or use guns of things.

1117
01:40:59,590 --> 01:41:01,790
They are going to use electricity.

1118
01:41:01,790 --> 01:41:09,490
They are going to use water to some extent, but I don't see a whole lot of other impacts.

1119
01:41:10,130 --> 01:41:17,270
One of the things I wanted to mention is that these places use a lot of electricity when

1120
01:41:17,270 --> 01:41:18,510
they are full, as you say.

1121
01:41:19,570 --> 01:41:28,130
If they get their electricity from RCEC that is located in Hayward, there is also the advantage

1122
01:41:28,130 --> 01:41:35,590
usage of UUT on the natural gas that RCC is going to use to produce the electricity.

1123
01:41:36,370 --> 01:41:44,450
But I don't know all the specifics, I know that conditions of approval call for data

1124
01:41:44,450 --> 01:41:51,950
centers to use renewable energy, so we'll have to look into the intricacies of what happens

1125
01:41:51,950 --> 01:41:58,790
when they use renewable energy, and then someone else will have to use energy that RCC produces.

1126
01:41:59,550 --> 01:42:05,650
I see. Okay, all right, so I guess he'll be able to fill us in on some more details in the next meeting.

1127
01:42:06,630 --> 01:42:07,930
We'll hope so, yes.

1128
01:42:07,930 --> 01:42:15,970
Okay, all right, very good. Thank you for that. And then question for finance.

1129
01:42:16,910 --> 01:42:22,530
I'm a little confused about on the slide where you're showing the pluses and minuses.

1130
01:42:22,950 --> 01:42:25,190
So, we lost the ARPA, I think it was slide two.

1131
01:42:26,610 --> 01:42:33,090
The specific question I have is you're showing that TOT is a minus of three and a half million.

1132
01:42:33,690 --> 01:42:40,610
But I'm at a loss to understand how that is from last year, from the last budget cycle to the current budget cycle.

1133
01:42:40,630 --> 01:42:42,490
No, thank you for bringing that up.

1134
01:42:42,770 --> 01:42:44,250
The numbers in the parentheses, that's the total.

1135
01:42:44,250 --> 01:42:47,490
So $3.5 million is the total TOT we bring in every year.

1136
01:42:48,150 --> 01:42:50,490
So there's a number of $80 million for property tax.

1137
01:42:50,730 --> 01:42:51,930
There's another number for sales tax.

1138
01:42:52,210 --> 01:42:56,230
I also put the total revenue for TOT is $3.5 million.

1139
01:42:56,470 --> 01:42:57,230
I see, okay, all right.

1140
01:42:57,470 --> 01:43:00,030
So for some reason, when I was going through the numbers,

1141
01:43:00,890 --> 01:43:02,290
can you bring that slide up?

1142
01:43:02,390 --> 01:43:04,770
I just, I'm sorry to dig in on this.

1143
01:43:04,930 --> 01:43:06,790
Do we, I'll be quick.

1144
01:43:07,050 --> 01:43:08,490
Give me one second, I can pull it up.

1145
01:43:08,730 --> 01:43:09,370
Okay, all right.

1146
01:43:48,510 --> 01:43:50,210
Yeah, yeah, that's all, yeah.

1147
01:43:50,210 --> 01:43:50,830
Okay.

1148
01:43:56,160 --> 01:43:57,500
Can you see it now, Council Member?

1149
01:43:57,840 --> 01:43:58,180
Yeah, I do.

1150
01:43:58,380 --> 01:43:58,560
Okay.

1151
01:43:58,800 --> 01:44:00,740
I think I was just confusing myself.

1152
01:44:01,240 --> 01:44:07,940
So, taking into consideration, oh, that's why, because you put dollar amounts for the

1153
01:44:07,940 --> 01:44:13,260
others, and then adding them together, I see you got to the 8.5 million less than the current

1154
01:44:13,260 --> 01:44:13,500
year.

1155
01:44:18,560 --> 01:44:25,820
So it's a plus 2.5 million in property tax, but it's a minus 4 million in sales tax and

1156
01:44:25,820 --> 01:44:32,480
In a minus in the ARPA loss and a 2 million less in real property transfer,

1157
01:44:33,320 --> 01:44:37,320
where, what amount is the transit, the TOT?

1158
01:44:37,900 --> 01:44:43,600
So I mentioned that the TOT depends on what we decide moving forward.

1159
01:44:43,600 --> 01:44:45,920
But as a placeholder right now it's actually the same dollar amount.

1160
01:44:46,060 --> 01:44:49,900
So for last year it's $3.5 million, this year it's $3.5 million.

1161
01:44:50,460 --> 01:44:55,200
The reason why it's the same number is last year there was a premature assumption

1162
01:44:55,200 --> 01:44:59,820
that we would increase COT then never came to fruition and so I've kept it at

1163
01:45:00,000 --> 01:45:10,860
That amount, which reflects an increase. Okay, thank you. The light bulb finally went on. Yeah. Everybody knows the brightest bulb in the room, but, you know, the bulb went on. Okay, thank you. That's all the questions. Thank you.

1164
01:45:15,640 --> 01:45:32,680
Councilmember Andrews. I have a quick question. What are the uses that are going into the cinema place? Do we know what the what's going in there? Yeah, so we've got mostly one Pacific coffee copy moved across the street.

1165
01:45:32,680 --> 01:45:43,420
We've got a coffee and tapas restaurant heading into the sweet that's adjacent to

1166
01:45:43,420 --> 01:45:43,880
foothill.

1167
01:45:44,500 --> 01:45:49,340
And there's also a new coffee shop coming in where one of the old coffee shops was.

1168
01:45:49,960 --> 01:45:54,140
But it's more focused on it's like a boba tea style, I think they call it cream coffee

1169
01:45:54,140 --> 01:45:54,660
or something.

1170
01:45:56,340 --> 01:46:01,420
I should mention that every spot I'm going to look at for a cafe then.

1171
01:46:02,840 --> 01:46:06,500
Thank you, it's working, I think it's working, all right, thank you.

1172
01:46:07,420 --> 01:46:11,880
Got a coffee shop, come to Hayward, Mayor Proghtem Roach.

1173
01:46:12,380 --> 01:46:14,940
Thanks, I just wanted to summarize the narrative about tonight.

1174
01:46:15,280 --> 01:46:17,860
So bring this, the budget to us.

1175
01:46:18,680 --> 01:46:22,700
The work has already been done with all the departments to try to bring it down to somewhere around the 2% level,

1176
01:46:23,100 --> 01:46:24,980
understanding the nuances of some of the departments.

1177
01:46:25,640 --> 01:46:31,400
And then there was no real ask as far as course services because we don't really have time to define that before we get to.

1178
01:46:31,400 --> 01:46:34,840
June 3rd and you're saying we have three days to get any changes that are going to happen

1179
01:46:34,840 --> 01:46:36,560
between now and June 3rd.

1180
01:46:38,040 --> 01:46:41,960
And given that, it's sort of the worst case scenario, given all the work that could

1181
01:46:41,960 --> 01:46:43,480
have been done to even get us here tonight.

1182
01:46:43,820 --> 01:46:47,380
But is there some room in the discussions we had tonight to potentially, maybe there is

1183
01:46:47,380 --> 01:46:51,400
a little bit more optimistic budgeting around UUT or around maybe some overtime because,

1184
01:46:52,160 --> 01:46:56,380
you know, that is a commitment to sort of produce by one half percent with every department

1185
01:46:56,380 --> 01:47:01,740
or something like that to further bring down that 12.6 million before we get to June 3rd.

1186
01:47:01,860 --> 01:47:05,760
So this sounds like there's three things, maybe some insurance savings in the City Attorney's Office,

1187
01:47:05,980 --> 01:47:10,440
maybe some UET projection that may be not be the 2 million but 500,000 or something like that.

1188
01:47:10,900 --> 01:47:14,760
And is there, and just sort of asking that question, is there any point to doing that?

1189
01:47:14,840 --> 01:47:20,600
Like is there some effect on our credit reading or anything like that that looks better if we get to

1190
01:47:20,600 --> 01:47:24,800
a $9.6 million deficit instead of a $12.6 million deficit?

1191
01:47:30,520 --> 01:47:36,380
Our financial statements are not part of the budget, but I think I'll defer to City Manager Alvarez for your first part of your question.

1192
01:47:37,000 --> 01:47:43,080
The second piece of the reductions, we can certainly take a look at insurance, UT, and over time.

1193
01:47:43,500 --> 01:47:46,360
However, it's not going to be $3 million, right?

1194
01:47:46,500 --> 01:47:53,100
And so we can certainly take a look at that in the next couple of days, where we're going, I think that's the bigger discussion for it.

1195
01:47:55,000 --> 01:47:57,100
That's beyond a fiscal question, I think.

1196
01:47:58,500 --> 01:48:00,100
Thank you so much for the question.

1197
01:48:00,880 --> 01:48:07,180
You know, I want to go back and just remind folks that the budget, what's going to happen

1198
01:48:07,180 --> 01:48:11,060
here in Hayward is that we're budgeting very differently.

1199
01:48:11,660 --> 01:48:14,780
So we require a structural fix to a structural deficit.

1200
01:48:15,700 --> 01:48:20,880
Long gone are the days where we would revisit the budget twice a year and then just manage

1201
01:48:20,880 --> 01:48:21,920
the expenditures.

1202
01:48:21,920 --> 01:48:27,940
So we're going to be doing budget year round to be able to address and close back to your

1203
01:48:27,940 --> 01:48:29,620
term the use of the reserves.

1204
01:48:30,380 --> 01:48:34,040
It's very uncomfortable and it's very sovereign what's happening here.

1205
01:48:34,740 --> 01:48:39,120
The good news that I wanted to share, well, it may not seem like a lot, but the fact that

1206
01:48:39,120 --> 01:48:47,700
we have a strong clarity on our finances is a huge accomplishment given where we began

1207
01:48:47,700 --> 01:48:48,360
in January.

1208
01:48:49,780 --> 01:48:53,140
I will share with you that the number kept changing for me every day.

1209
01:48:54,100 --> 01:48:59,320
When I got here we were already embarking, we were almost done with the mid-year budget

1210
01:48:59,320 --> 01:49:02,620
process and I was still trying to understand and ask a lot of questions.

1211
01:49:03,360 --> 01:49:09,220
So I'm very, and I say that because there's been a lot of work that has been done, it may

1212
01:49:09,220 --> 01:49:14,160
not seem to you, but a huge amount of work that has been done by the finance department

1213
01:49:14,160 --> 01:49:15,800
and all of the department heads here.

1214
01:49:15,800 --> 01:49:21,380
And it's a commitment that we're going to continue doing throughout the entire year.

1215
01:49:22,040 --> 01:49:27,640
Between now and June, while it may be easy to say, can we have a commitment of a reduction

1216
01:49:28,020 --> 01:49:32,460
of the difference between public safety and the remaining of the departments for the overtime

1217
01:49:32,460 --> 01:49:32,900
use?

1218
01:49:33,260 --> 01:49:37,020
So it's about $8.5 million when you subtract public safety.

1219
01:49:37,860 --> 01:49:41,440
And I just asked the finance staff and they're probably working on that report.

1220
01:49:41,440 --> 01:49:47,040
I asked to give me an overtime report from the various departments that I can understand

1221
01:49:47,040 --> 01:49:52,600
from the last two years and what happened in 2018 and 2019 because I should be the baseline

1222
01:49:52,600 --> 01:49:54,740
to understand what's happening here.

1223
01:49:55,440 --> 01:49:59,980
But that, to be fair to the Department of Directors, just to say a comment, we know we're

1224
01:50:00,000 --> 01:50:27,980
We're not understanding the impacts or how the over time is being generated. Where are the opportunities? It's, again, we can certainly make those type of commitments, but it's, again, having a very large broad stroke. When right now, what we need is a little bit of patience and to really do the work correctly. I, and again, I've said before, it's very easy to take the quick exits and the quick routes.

1225
01:50:27,980 --> 01:50:33,420
But those may not necessarily serve right the city of Hayward because what we're trying

1226
01:50:33,420 --> 01:50:41,680
to do here is to really do a true balance approach that maintains the key services and

1227
01:50:41,680 --> 01:50:42,920
the core services for the city.

1228
01:50:43,300 --> 01:50:48,260
So it balances the community impact while also protecting our workforce and that's something

1229
01:50:48,260 --> 01:50:50,140
that's also different in Hayward.

1230
01:50:50,720 --> 01:50:57,380
We've made a commitment and I made a commitment that we're going to be looking at doing the

1231
01:50:57,380 --> 01:51:08,000
hard work at the forefront and not necessarily doing sweep furloughs in releasing folks and layoffs.

1232
01:51:09,800 --> 01:51:14,480
We don't want to do that. We want to actually do the work, do the program evaluation,

1233
01:51:14,680 --> 01:51:20,080
understand where the opportunity is light, look at the overtime. So there's a little bit of

1234
01:51:20,080 --> 01:51:23,780
work that needs to be done, but it won't be done between now and the next three days.

1235
01:51:23,780 --> 01:51:28,500
Yeah, that's fair and I was just I mean that's why I was asking like are we really trying to do any work today

1236
01:51:28,500 --> 01:51:31,980
We just accepting that because I understand everyone's done this hard work to get us here

1237
01:51:31,980 --> 01:51:34,980
That are we really trying to offer any cuts at this point? It sounds like we're not

1238
01:51:37,270 --> 01:51:41,950
So again by or not cuts or or even revenue projections. Yeah. Yes

1239
01:51:41,950 --> 01:51:47,770
So what's coming before June 3rd is the TOT we're hoping to get that back to you in front of you

1240
01:51:47,770 --> 01:51:49,170
That's a great opportunity

1241
01:51:49,650 --> 01:51:54,770
We're also looking I'm gonna do my best to try to understand the over time

1242
01:51:56,410 --> 01:52:04,330
I'm going to be looking at that very closely, and then I have a couple of other pieces that I need to discuss separately, but we may have an opportunity.

1243
01:52:05,050 --> 01:52:11,250
But in reality, what you have here, the 12.6, it's really the best approach that we have for now.

1244
01:52:11,490 --> 01:52:21,570
Okay, thanks, and I think that's what I was looking for. I'm not looking to create any false projections. Obviously, I wouldn't want that, and I wouldn't want anyone to sort of offer up over time when that was in a reality.

1245
01:52:21,570 --> 01:52:23,930
So, thank you, that's all, thank you.

1246
01:52:25,070 --> 01:52:27,310
Councillor Boone, thank you.

1247
01:52:27,530 --> 01:52:33,910
My final two comments here is, I know we've talked a lot about the reserve and spendable

1248
01:52:33,910 --> 01:52:41,410
versus non-spendable, but, you know, there's, sure, there's legal parameters or financial

1249
01:52:41,410 --> 01:52:47,170
parameters that allow us to put non-spendable things in the reserve, but that's clearly not

1250
01:52:47,170 --> 01:52:48,150
best practice, right?

1251
01:52:48,150 --> 01:53:15,930
So I would really caution us on looking at things that are non-spendable as money in the bank that we can spend because as we just said the purpose of reserve is to offload in an emergency, we cannot go and sell that building tomorrow to go and pay for the theoretical bridge collapse that we just talked about so I just really want us to be grounded on best practices related to reserves is spendable reserves, not non-spendable reserves.

1252
01:53:15,930 --> 01:53:35,310
And I think as we've went through this budget, we're starting to clean up some past practices that provide more transparency into the current budget of this city so that we're not sitting up here with false expectations of what we can and can't do if we were to need to go into a position to use these reserves.

1253
01:53:35,310 --> 01:54:04,150
Secondly, is I really like the idea of getting input from all staff across the city and making this like some sort of fun and engaging way because I think the people that are on the ground, the ones that are doing the work on a daily basis, probably have the best perspectives on programs, probably have the best perspectives on where we can leverage technology or where we can create efficiencies or where things maybe need to stop because they're not adding the community benefit or impact that we'd initially thought about.

1254
01:54:04,150 --> 01:54:33,570
So, anything that we can do to be creative and to engage all corners of our staff and of the city in really kind of making this in all hands on deck effort, this way we all feel like we're a part of the solution and we don't feel like something is happening to us, but we feel like we're a part of what's happening going forward, so just a perspective that I really want us to use as a lens as we continue to move forward with this important effort and thank you again for tonight's meeting.

1255
01:54:35,350 --> 01:54:36,010
Thank you.

1256
01:54:36,870 --> 01:54:37,690
Anyone else?

1257
01:54:38,910 --> 01:54:50,350
Mr. Mayor, if I may just pick it up on customer urbanias, we are literally setting up an email for staff suggestions, but some sort of forum so that staff have a way to send their ideas.

1258
01:54:51,010 --> 01:54:58,310
We did all staff meetings and we already have received some really good feedback, but we wanted to have some sort of mechanism where we could review it weekly or something with staff.

1259
01:54:58,310 --> 01:54:59,890
but then to your point really setting up.

1260
01:55:00,000 --> 01:55:29,800
Some sort of innovative award, innovation award to someone who really comes up with ideas. I've had past experiences where staff come up with ideas you've never even thought of, right, especially in maintenance services or public works, or in the police side, or fired, all the things that we don't necessarily see on a daily basis. It's not changing your printer paper. It's some really big ideas that could happen, so we're certainly taking a look at that as well. Yeah, and I like that idea of an email and things like that, but I was also even thinking about being intentional about creating like ideation sessions with staff, right?

1261
01:55:29,800 --> 01:55:31,280
to really get those thoughts flowing.

1262
01:55:31,400 --> 01:55:33,440
Because sure, they might have some that come top of mind.

1263
01:55:33,680 --> 01:55:38,040
But I think when you get in that creative, ideating and co-creating space,

1264
01:55:38,040 --> 01:55:42,180
you might be able to bring ideas together to come up with a bigger impact.

1265
01:55:42,560 --> 01:55:45,580
And so anyways, just thinking of ways of engaging staff and

1266
01:55:45,580 --> 01:55:49,820
very creative, you know, and engaging ways to make them feel like they're a part of what's happening

1267
01:55:49,820 --> 01:55:52,140
and so that they can influence how it is we move forward.

1268
01:55:52,140 --> 01:55:52,860
So thanks again.

1269
01:55:54,020 --> 01:56:06,020
Thank you, I just have a few, a couple of comments, I don't want to repeat too much what has already been said.

1270
01:56:06,740 --> 01:56:17,080
But I have heard a few comments up here regarding priorities and our course services.

1271
01:56:17,080 --> 01:56:27,500
and I wanted to just appreciate the slide that Assistant City Manager Regina Youngblood contributed to us.

1272
01:56:27,980 --> 01:56:34,400
I believe it's slide 13 of 16 and slide 14 of 16.

1273
01:56:35,280 --> 01:56:42,680
And I want to remind all of us, just kind of put this into perspective, that our priorities,

1274
01:56:44,020 --> 01:56:49,500
While we have defined priorities, and they're in the budget, and we can all see them.

1275
01:56:49,840 --> 01:56:55,460
But I also want to remind us that our really priorities and our core services are the satisfaction survey, right?

1276
01:56:55,700 --> 01:56:56,860
I mean, they're right here in front of us.

1277
01:56:57,240 --> 01:57:01,800
Cost of housing homelessness, crime, pot holes, and street maintenance, and litter and graffiti.

1278
01:57:02,640 --> 01:57:04,700
I mean, that's really what we're on the hook for, right?

1279
01:57:04,900 --> 01:57:09,060
I mean, that's what people are looking for us to fix.

1280
01:57:10,700 --> 01:57:12,120
Residential satisfaction survey.

1281
01:57:12,120 --> 01:57:24,760
communities, municipal services priorities, fast emergency response, safe neighborhoods and safe well-maintained streets and sidewalks, healthy local businesses that stay in Hayward.

1282
01:57:25,420 --> 01:57:33,540
A clean, well-maintained city with well-maintained street lighting, effective police protection and crime prevention.

1283
01:57:33,540 --> 01:57:35,980
So, I just kind of, first of all, I wanted to think,

1284
01:57:37,180 --> 01:57:43,380
assistance to manage your young blood for sort of putting these in there because it does give us focus.

1285
01:57:44,200 --> 01:57:51,280
We can talk, you know, it's clear we all understand the situation where we get it.

1286
01:57:51,440 --> 01:57:58,940
I mean, we understand that, but I don't want us to lose focus and

1287
01:57:58,940 --> 01:58:02,760
start talking about other priorities and or be confused about priorities.

1288
01:58:02,760 --> 01:58:10,600
because the priorities have been set forth for us in two places, at least what I pay attention to.

1289
01:58:11,020 --> 01:58:19,020
The resident satisfaction survey and then of course, the paramount priority is C and K1.

1290
01:58:19,760 --> 01:58:24,300
Those are the two most significant revenue generators in the city.

1291
01:58:24,740 --> 01:58:28,420
We went to the voters to pass those.

1292
01:58:28,420 --> 01:58:43,440
We stood on doorsteps and we made political promises and so I guess I just want to make sure and I want to ask our finance director

1293
01:58:45,620 --> 01:58:53,560
regarding C and K1 and I kind of want to ease tensions. I know there was a call at the beginning of the meeting

1294
01:58:53,560 --> 01:58:58,120
I mean, but I just want to ease the community.

1295
01:58:58,760 --> 01:59:17,800
Regarding C and K1, we've sort of partitioned those, and those funds, and those dollars will continue to pay for the priorities and the promises that we have set forth with those two buckets of money.

1296
01:59:19,670 --> 01:59:20,750
That is correct, Mayor.

1297
01:59:20,970 --> 01:59:23,290
And as if you saw in the budget message by Dr.

1298
01:59:23,470 --> 01:59:29,670
Alvarez, there's literally a heading on our commitment, honoring our promise to the community, which is the measure C and measure K-1 board.

1299
01:59:30,110 --> 01:59:31,730
Absolutely, well, thank you.

1300
01:59:31,990 --> 01:59:40,490
And I wanted to thank Dr. Alvarez for really isolating that in your budget message, because that's important.

1301
01:59:40,930 --> 01:59:48,530
I mean, at the end of the day, that those are two very significant revenue streams.

1302
01:59:48,530 --> 01:59:56,110
So I just want to be clear about that and make sure there's no confusion around that.

1303
01:59:57,570 --> 01:59:59,210
You know, a couple of

1304
02:00:00,400 --> 02:00:03,000
Another comment I have is,

1305
02:00:05,780 --> 02:00:30,100
to sort of go back to what council member Sirep talked about, you know, about not compromising community services. And, you know, I, I mean, I agree. And the investment we make in, you know, to go back to the resident satisfaction survey, the investment we make, say, in homelessness, it does, you know,

1306
02:00:30,100 --> 02:00:37,920
help us, you know, in the long run, but I also want to just sort of put out there, I mean, let's just sort of be honest with all of us up here.

1307
02:00:38,240 --> 02:00:50,160
It is a very expensive to respond to the homeless crisis that every Bay Area City is facing right now is, it's expensive.

1308
02:00:50,700 --> 02:00:57,680
And, you know, I mean, I'm not saying we don't, I'm not saying we stop investing in that and we stop, you know, supporting those services.

1309
02:00:57,680 --> 02:01:08,520
But I think it's absolutely important that the community understands that the city of Hayward we are responding to the resident satisfaction survey.

1310
02:01:08,700 --> 02:01:14,280
We have been responding to the resident satisfaction survey at a high price.

1311
02:01:14,620 --> 02:01:15,560
I mean, we've been doing it.

1312
02:01:16,460 --> 02:01:22,160
There was a number that Chief Lomer brought to us a few weeks ago.

1313
02:01:22,160 --> 02:01:26,620
And I believe, and you can sort of correct me if I'm incorrect.

1314
02:01:27,080 --> 02:01:40,240
But there were two individuals in the city of Hayward that in total requiring city and hospital services total just north of $1.6 million.

1315
02:01:40,900 --> 02:01:50,940
Two people, two people, and so we are doing our part, we're not taking our foot off the gas, but

1316
02:01:50,940 --> 02:02:00,040
But these are sort of commitments that we have made, these are sort of the values that we really have with this.

1317
02:02:00,240 --> 02:02:04,220
So I want to, while we're sort of figuring this out,

1318
02:02:04,760 --> 02:02:09,080
the things that the city and the neighbourhoods expect us to respond to,

1319
02:02:11,460 --> 02:02:16,200
nonetheless are very, very expensive strategies that we're deploying.

1320
02:02:16,200 --> 02:02:33,320
I mean, third is regarding OPEB, and I just wanted to sort of, you know, I know that we didn't, you know, this year was the first time in several years, we didn't make our full payment, we're still making the payment nonetheless.

1321
02:02:33,800 --> 02:02:46,000
But I just wanted to sort of see, you know, kind of get your opinion about, you know, how long do you think it would take for us to sort of get back to.

1322
02:02:46,000 --> 02:02:49,160
to make in a full art payment.

1323
02:02:50,680 --> 02:02:52,180
What needs to be in place?

1324
02:02:52,580 --> 02:02:53,280
Let me ask you that.

1325
02:02:53,380 --> 02:02:59,120
What needs to be in place, and how long do you think it would take for us to make that full payment?

1326
02:02:59,460 --> 02:03:02,000
Mayor Salinas, we just cut that payment in half.

1327
02:03:02,220 --> 02:03:09,220
The ADC or ARC payment from $3 million is what we've made for this year last year, I think, three years total.

1328
02:03:09,920 --> 02:03:13,660
In the budget for next year, we're proposing making a $1.5 million payment.

1329
02:03:13,660 --> 02:03:20,980
It would be our intention that that only happens one time that we get back to that $3 million as soon as possible because you don't want to get that

1330
02:03:20,980 --> 02:03:24,220
Yeah, you don't want to have run away from you, right? And so to your point

1331
02:03:24,220 --> 02:03:29,340
It's like making that minimum card minimum credit card payment right at some point when times are tough you kind of

1332
02:03:29,840 --> 02:03:37,240
Lower that but we really want to get back to that as soon as possible. Yeah, I appreciate that because um, you know back in 2010

1333
02:03:37,740 --> 02:03:38,100
2011

1334
02:03:38,940 --> 02:03:47,820
We spent a lot of time figuring that out and we got to a point where we were making the full art payment.

1335
02:03:48,700 --> 02:03:50,200
And so, thank you.

1336
02:03:50,320 --> 02:03:50,900
I appreciate that.

1337
02:03:50,980 --> 02:03:56,260
That we're focusing on getting that back to normal sooner than later.

1338
02:03:57,920 --> 02:04:04,460
The movie theater, I appreciate the response to our movie theater.

1339
02:04:05,660 --> 02:04:14,720
If somebody wants to buy the movie theater for a $100 million tomorrow, go right ahead or cheaper.

1340
02:04:15,760 --> 02:04:30,160
But I think the hour investment in the movie theater, while we weren't expecting a windfall of money in the first or second or even maybe third year,

1341
02:04:30,160 --> 02:04:38,780
You know, we were sort of anticipating a staggered approach or a staggered, you know, revenue stream.

1342
02:04:39,340 --> 02:04:52,580
It's good, it's promising to see that the shells are filling up, if not already full, and I know the budget and finance committee.

1343
02:04:52,700 --> 02:04:56,040
We have been tracking that and we will continue to track that.

1344
02:04:56,040 --> 02:04:59,980
And I know we have been having very

1345
02:05:00,000 --> 02:05:26,380
We are very honest conversations about the movie theater and the future of that movie theater. And so, I just want to assure folks that while we continue to talk that, we will continue to have very honest conversations about that. The other, the last comment I want to make is council mayor pro-tam wrote, talked about sort of our themes. What is it that we're sort of looking for?

1346
02:05:26,380 --> 02:05:34,720
And finance director Edmond had sort of asked us, you know, they're looking for themes.

1347
02:05:34,920 --> 02:05:35,760
You're looking for themes.

1348
02:05:36,120 --> 02:05:40,220
And, you know, the themes that I want to put on the table, just sort of that we're clear

1349
02:05:40,220 --> 02:05:47,860
about it, and so the community is clear, is we want to protect measure C. We want to

1350
02:05:47,860 --> 02:05:53,740
protect K1, and we want to continue with our commitments to that.

1351
02:05:54,680 --> 02:06:06,160
I'm hearing we are committed to core services, for sure, and also looking at the satisfaction survey.

1352
02:06:06,460 --> 02:06:16,100
The good news is I think the resident satisfaction survey, I think it's coupled pretty close,

1353
02:06:16,300 --> 02:06:19,920
pretty tightly with our priorities and our strategic initiatives.

1354
02:06:20,780 --> 02:06:25,080
There might be a few that are sort of off the side a little bit.

1355
02:06:25,220 --> 02:06:32,300
But I think for the most part, they are coupled closely with our priorities.

1356
02:06:32,680 --> 02:06:38,440
So when I look at, and I also know that nothing's going to happen in the next three days,

1357
02:06:38,740 --> 02:06:48,840
I get that we want to make sure we get this budget passed and then we keep going and monitoring it.

1358
02:06:48,840 --> 02:06:58,120
The fourth theme that I'm picking up, too, is continual ongoing monitoring.

1359
02:06:59,060 --> 02:07:13,500
I like the mid-year reports and so forth, but if we need to have more frequent budget check-ins as a council, maybe that's what we do.

1360
02:07:13,500 --> 02:07:26,120
We have, you know, even if it's just, even if it's on the agenda and we're able to sort of do a quick check-in and see what we're doing and just, you know, do a quick check-in.

1361
02:07:26,500 --> 02:07:37,040
I think that maybe something we begin to agenda is more frequently, but anyways, that's pretty much what I have.

1362
02:07:37,040 --> 02:07:42,340
Are there any other questions, comments, director Edmond?

1363
02:07:43,800 --> 02:07:44,120
Yeah.

1364
02:07:44,940 --> 02:07:47,200
Just to follow up on the question about the movie theater.

1365
02:07:47,420 --> 02:07:50,340
So if we take the movie theater out of there because it's not spendable,

1366
02:07:50,420 --> 02:07:57,340
which, again, I'm an agreement with, I was just trying to get to how we looked at projections when it was in versus when it wasn't.

1367
02:07:57,360 --> 02:07:58,160
That was what I was getting at.

1368
02:07:58,440 --> 02:08:02,620
But if we are realizing some revenue, when does that sort of inverting and

1369
02:08:02,620 --> 02:08:05,700
like we're considering the 600, you know, whatever amount is coming in,

1370
02:08:05,760 --> 02:08:09,320
like does it state as a flat 10 million non-spendable or like,

1371
02:08:09,320 --> 02:08:10,360
like how are we going to trade it?

1372
02:08:10,440 --> 02:08:13,060
Because if we're taking it out of the reserve and saying it's non-spendable,

1373
02:08:13,380 --> 02:08:16,520
are we now, should that just be simply listed as an expense that we paid,

1374
02:08:16,660 --> 02:08:17,800
you know, whatever it was last year?

1375
02:08:18,040 --> 02:08:20,040
And as the money comes in, that's just revenue.

1376
02:08:20,040 --> 02:08:22,300
Because otherwise, like, I don't know how to trade it.

1377
02:08:22,340 --> 02:08:25,580
Like, at some point does it become an $8 million non-spendable?

1378
02:08:25,620 --> 02:08:26,700
And there's two million spendable.

1379
02:08:26,940 --> 02:08:28,640
How are we going to handle that going forward?

1380
02:08:28,640 --> 02:08:28,740
All right.

1381
02:08:31,930 --> 02:08:32,950
Happy to jump in here.

1382
02:08:34,070 --> 02:08:35,950
You know, so I will put it this way.

1383
02:08:36,270 --> 02:08:40,410
Right now we have the 8.6 that's a non-spendable asset, right?

1384
02:08:40,570 --> 02:08:42,330
We've got the loan receivable.

1385
02:08:42,770 --> 02:08:44,910
As that money comes in, that'll reduce that amount.

1386
02:08:45,690 --> 02:08:50,530
8.6, let's just say, we've got a $2 million payment from HEDC.

1387
02:08:51,010 --> 02:08:54,790
That would then go into the spendable reserves,

1388
02:08:55,070 --> 02:08:57,510
except we've got a $12 million deficit.

1389
02:08:57,510 --> 02:09:07,130
So yes, it would reduce the amount of non-spendable, but if we're taking it out of reserves immediately, then, you know, it's a net negative.

1390
02:09:07,650 --> 02:09:16,390
Let's say we had a balanced budget, yes, as that 8.6 million comes in, it would then go into become, you know, it would be cash.

1391
02:09:16,690 --> 02:09:19,790
So it would be a spendable part of the spendable reserves.

1392
02:09:19,790 --> 02:09:24,930
Okay, and that's sort of what I figured, I just like it's sitting there as this sort of like lump non-moving lump of

1393
02:09:25,530 --> 02:09:29,210
Non-spendable it does seem like in a way we should if we're gonna do this going forward

1394
02:09:29,210 --> 02:09:34,070
Just to remove it because we spent the money out of the general fund and any revenue that comes in will just be revenue

1395
02:09:34,070 --> 02:09:38,890
And not like then we're not looking at it in this way that because otherwise, you know

1396
02:09:38,890 --> 02:09:44,790
Because it has been projected as as part of the reserve, right? It was projected that way before and now we're sort of moving that out

1397
02:09:44,790 --> 02:09:48,670
So, you know, just I just want to make sure we're being honest about what it looks like on the budgeting

1398
02:09:48,670 --> 02:09:50,150
But I understand what you're saying.

1399
02:09:50,270 --> 02:09:51,010
Thank you.

1400
02:09:52,090 --> 02:09:52,730
Okay.

1401
02:09:53,710 --> 02:09:59,970
Before I conclude, I wanted to extend and I did hear it in a-

1402
02:10:00,000 --> 02:10:27,720
There are a lot of different ways up here, but I really wanted to think, of course, our city manager. But I also wanted to think the executive team and all of the staff throughout the organization for really sort of taking this moment and doing all of our very best to make sure that we're able to deliver the very best budget possible. And we're, I forget who set it up here.

1403
02:10:27,720 --> 02:10:34,160
But we're all in this together, we're all working on this together.

1404
02:10:34,380 --> 02:10:46,180
And your work, particularly all of your work on the front lines certainly is helpful, and

1405
02:10:46,180 --> 02:10:47,420
it certainly helps us.

1406
02:10:47,800 --> 02:10:50,260
And so I just wanted to say thank you for all of your work.

1407
02:10:50,740 --> 02:10:53,680
Please tell all of your staffs, thank you very much.

1408
02:10:53,680 --> 02:10:57,840
And the conversation, of course, is not done, right?

1409
02:10:58,880 --> 02:11:04,000
While we may be voting on this next week, we still have a long road ahead of us.

1410
02:11:04,220 --> 02:11:08,740
So I wanted to say say thank you and thank you to my colleagues.

1411
02:11:08,740 --> 02:11:12,960
And I see a director, Epin's microphone turn on.

1412
02:11:13,620 --> 02:11:14,300
Thank you, Mayor.

1413
02:11:14,480 --> 02:11:17,660
I do want to pick you back on your comments and that we're only as good as our team.

1414
02:11:17,940 --> 02:11:19,640
This has been a heavy lift to get here today.

1415
02:11:19,640 --> 02:11:22,700
I really do want to thank the exec team for getting us here.

1416
02:11:23,360 --> 02:11:24,920
It's been a lot of work to get here.

1417
02:11:25,320 --> 02:11:27,260
I want to personally call out three individuals.

1418
02:11:27,900 --> 02:11:33,700
And first is Nick Mullins, who has our senior management analyst who's working as our budget officer.

1419
02:11:34,360 --> 02:11:38,280
And Nick has been available, and he jumps when we ask questions.

1420
02:11:38,800 --> 02:11:41,780
When you ask questions, we want that answer yesterday, and he works on it.

1421
02:11:42,280 --> 02:11:49,480
And so, really want to call out Nick for his work, and really want to call out friend Hatfield, who's our management analyst that works on this as well.

1422
02:11:49,480 --> 02:11:54,700
This is all we do, this is all we do day in, day out, nights, weekends, right, this is

1423
02:11:54,700 --> 02:11:55,320
what we work on.

1424
02:11:55,660 --> 02:11:59,320
And then Christina, who conveniently slipped out of the room, but Christina Cosby,

1425
02:11:59,460 --> 02:12:06,020
definitely Director of Finance, you know, you're only as good as your team, and we have a

1426
02:12:06,020 --> 02:12:07,960
really good team, I'm very proud to be part of that.

1427
02:12:08,800 --> 02:12:10,200
So as Christina walks into the room.

1428
02:12:10,320 --> 02:12:11,580
Christina has walked into the room.

1429
02:12:13,300 --> 02:12:13,980
Thank you, Mayor.

1430
02:12:14,400 --> 02:12:14,500
Great.

1431
02:12:14,920 --> 02:12:15,800
Thank you very much.

1432
02:12:15,800 --> 02:12:24,460
So, if there are no other comments to this, I will close this item and I will move to an adjournment.

1433
02:12:31,290 --> 02:12:45,550
Tonight, you may have seen the flags in City Hall and around town on the city buildings

1434
02:12:45,550 --> 02:13:14,170
at half mast and I am incredibly sad to report that the City of Hayward, particularly the public works department and particularly the wastewater treatment plant, has suffered an incredible loss on Friday.

1435
02:13:14,170 --> 02:13:25,490
On Friday, a long time city employee, Mike Rayback, was involved in an accident over by

1436
02:13:25,490 --> 02:13:38,090
Shaboe College, and where he succumbed to his injuries, and he was on his e-bike, he

1437
02:13:38,090 --> 02:13:44,450
He was hit by an automobile, and he did not survive.

1438
02:13:47,290 --> 02:13:53,670
You know, what I heard was, you know, he was at work.

1439
02:13:54,470 --> 02:13:56,410
He went home for lunch.

1440
02:13:57,270 --> 02:14:00,130
He was picking up some medications or something.

1441
02:14:00,470 --> 02:14:03,950
And Friday, as all of you know, it was a beautiful day on Friday.

1442
02:14:03,950 --> 02:14:14,510
way. He decided to, he lived relatively close to the treatment plant. Instead of driving

1443
02:14:14,510 --> 02:14:17,670
back to work, he took his bike.

1444
02:14:20,010 --> 02:14:28,650
And he didn't make it back to work. And so it is absolutely

1445
02:14:28,650 --> 02:14:33,750
that we're sharing this tonight.

1446
02:14:34,930 --> 02:14:36,690
It is with great sadness.

1447
02:14:37,290 --> 02:14:40,810
We share with you news of the passing of Mike Raybeck,

1448
02:14:41,250 --> 02:14:44,650
Public Works Department Utilities Maintenance Mechanic.

1449
02:14:45,430 --> 02:14:49,630
He was struck by a vehicle while riding a motorized bicycle

1450
02:14:49,630 --> 02:14:54,250
and a fatal accident on Depot Road on Friday morning.

1451
02:14:55,410 --> 02:14:58,630
Mike joined the City of Hayward as Utilities Maintenance Mechanics

1452
02:14:58,630 --> 02:14:59,970
on March 16th.

1453
02:15:00,680 --> 02:15:29,500
2019, 2009, and has served the city and the Hayward community continuously ever since. Previously, he worked for United Airlines in the maintenance department and was very excited about the opportunity to work in and for the city in which he lived with his wife, Denise, daughter, Kira, according to a supervisor, Dan McGallis. He loved working with computers, Dan wrote, and applied

1454
02:15:29,500 --> 02:15:42,700
His love for technology with equal zeal from important water pollution control facility projects to helping a colleague set up their desk set up his set up their desktop PC.

1455
02:15:43,420 --> 02:15:44,820
He loved his toys too.

1456
02:15:45,100 --> 02:15:48,440
He had remote cars, helicopters, and drones.

1457
02:15:49,340 --> 02:15:54,380
He loved riding his Honda magna and really loved his cars and trucks.

1458
02:15:54,380 --> 02:16:03,080
over the years, we saw him in his GT-568 Camaro Pace Car and the Corvettes.

1459
02:16:04,060 --> 02:16:11,620
In addition, Mike was a member of the All Pro American Professional Wrestling Association.

1460
02:16:15,140 --> 02:16:19,540
Professional wrestling promotion and training school based here in Hayward.

1461
02:16:19,540 --> 02:16:24,460
His professional wrestling persona was Max Justice.

1462
02:16:25,120 --> 02:16:31,920
On breaks at work at the plant, Dan mentioned he would share videos of his APW exploits,

1463
02:16:32,260 --> 02:16:38,840
including a battle royale win and snippets of his notable feud with other wrestlers,

1464
02:16:39,660 --> 02:16:42,720
the great colleague, like the great colleague.

1465
02:16:43,300 --> 02:16:47,360
Mike loved playing the heel and would sometimes go into character,

1466
02:16:47,360 --> 02:16:50,300
playfully with guys at the plant.

1467
02:16:51,600 --> 02:17:00,180
Mike was part of the WPCF family and he will always, always be missed.

1468
02:17:02,020 --> 02:17:14,260
Today, I was in our PIO's office, Chuck Finney, and I saw a picture of Max Justice,

1469
02:17:14,260 --> 02:17:29,980
And I'll tell you, I can only imagine he was a, he was quite a menacing fellow that I can, I can only imagine his, his on stage persona.

1470
02:17:31,000 --> 02:17:42,180
In accordance with the City of Hayward Administrative Rule, 5.1, all flags on city properties have been lowered in honor of and respect for our colleague Mike.

1471
02:17:42,180 --> 02:17:51,400
I can assure you that all of us here on the City Council are absolutely heartbroken.

1472
02:17:51,760 --> 02:18:03,140
Mr. Amiri, I know I called you on Friday and we're on Saturday and we really are grieving

1473
02:18:03,540 --> 02:18:04,480
for Mike today.

1474
02:18:05,140 --> 02:18:10,120
I know that we will be planning a tree in his honor.

1475
02:18:11,000 --> 02:18:12,980
I know there will probably be services.

1476
02:18:13,500 --> 02:18:14,920
Please keep us updated.

1477
02:18:16,000 --> 02:18:20,540
And when you do talk to, again, when you talk to his family,

1478
02:18:21,100 --> 02:18:24,880
tell them that the City Council absolutely expresses our prayers

1479
02:18:24,880 --> 02:18:25,860
and our condolences.

1480
02:18:26,780 --> 02:18:30,760
Ladies and gentlemen, tonight meeting is adjourned

1481
02:18:30,760 --> 02:18:32,760
in the memory of Mike Raybeth.