City Council Regular Meeting

>> RECORDING IN PROGRESS. >> GOOD EVENING, EVERYONE, WELCOME TO THE REGULAR CITY COUNCIL MEETING OF THE CITY OF MARTINEZ. IT IS MARCH 6th, 2024, THE TIME IS 7:03 P.M. FIRST UP, PLEASE STAND FOR THE PLEDGE OF ALLEGIANCE. CLERK, PLEASE CALL THE ROLL. >> COUNCILMEMBER JAYE HOWARD? >> PRESENT. >> COUNCILMEMBER MARK ROSS? >> PRESENT. >> COUNCILMEMBER SATINDER MALHI? >> PRESENT. >> VICE PRESIDENT DEBBIE McKILLOP? >> PRESENT. >> MAYOR BRIANNE ZORN? >> PRESENT. >> FIRST ITEM ON THE AGENDA'S PRESENTATIONS, FIRST PROCLAMATION IS FOR WOMEN'S HISTORY MONTH, SO I WILL READ THAT HERE, THEN WE WILL PRESENT THE OTHER ONE TO FOLKS WHO ARE NOT HERE TODAY. SO, WOMEN'S HISTORY MONTH, 2024. WOMEN HAVE MADE HISTORIC CONTRIBUTIONS TO THE GROWTH AND STRENGTH OF OUR NATION IN COUNTLESS RECORDED AND IN LIFE. THEY FORM TOPICAL INSTITUTIONS, AND EQUAL OPPORTUNITY. TODAY, WOMEN OF EVERY RACE, CLASS, AND ETHNIC BACKGROUND, SERVICE LEADERS IN MAJOR CHANGE MOVEMENTS AND SERVE OUR COUNTRY COURAGEOUSLY IN THE MILITARY. DESPITE THESE CONTRIBUTIONS, THE ROLE OF AMERICAN WOMEN IN HISTORY HAS BEEN CONSISTENTLY OVERLOOKED AND UNDERVALUED IN LITERATURE TEACHING STUDIES OF AMERICAN HISTORY. ON BEHALF OF THE MARTINEZ CITY COUNCIL, I PROCLAIM MARCH AS WOMEN'S HISTORY MONTH IN MARTINEZ AND ASK YOU TO JOIN ME IN CELEBRATING THE ACHIEVEMENTS OF WOMEN PAST AND PRESENT AS THEY PUT FORWARD THEIR FINAL CONTRIBUTIONS TO OUR NATION, CITY, AND FUTURE. ALL RIGHT. CAN I HAVE THE COUNCIL JOIN ME FOR THE NEXT PROCLAMATION? >> WE HAVE AN EXTRA MEMBER OF OUR COUNCIL THIS EVENING. YES, PERFECT. AMERICAN RED CROSS MONTH, 2024. WHEREAS, AMERICAN RED CROSS MONTH CELEBRATES THE HUMANITARIAN SPIRIT AND COMPASSION OF PEOPLE IN MARTINEZ AND REAFFIRMS OUR COMMITMENT TO CARE FOR ONE ANOTHER IN TIMES OF CRISIS; AND WHEREAS, THIS GENEROUS SPIRIT IS WOVEN INTO THE FABRIC OF OUR COMMUNITY AND ADVANCES THE HUMANITARIAN LEGACY OF AMERICAN RED CROSS FOUNDER, CLARA BARTON - ONE OF THE MOST HONORED WOMEN IN OUR COUNTRY'S HISTORY - WHO NOBLY DEDICATED HERSELF TO ALLEVIATING SUFFERING; AND WHEREAS, PEOPLE HAVE COUNTED ON THE AMERICAN RED CROSS FOR THE INFORMATION AND SKILLS THEY NEED TO BE SAFE AT HOME, AT WORK, AT SCHOOL, AND AT PLAY, TRAINING PEOPLE IN LIFESAVING SKILLS IN CPR, FIRST AID, FIRE PREVENTION AND WATER SAFETY; AND WITH 1,032 VOLUNTEERS IN CONTRA COSTA COUNTY, THE AMERICAN RED CROSS ASSISTED OR RESPONDED TO 115 DISASTERS, INSTALLED 583 SMOKE ALARMS, MADE 205 HOMES SAFER, AND TRAINED 577 INDIVIDUALS ABOUT FIRE PREVENTION THROUGH THE SOUND THE ALARM PROGRAM, AND TRAINED 617 YOUTH THROUGH THE PILLOWCASE PROJECT AND PREPARE WITH PEDRO. CONTRA COSTA COUNTY RESIDENTS DONATED NEARLY 16,736 UNITS OF LIFESAVING BLOOD, HOSTED 538 BLOOD DRIVES, TRAINED 6,522 CITIZENS IN FIRST AID, CPR AND AED, TRAINED 3,803 CITIZENS IN WATER SAFETY, PROVIDED SUPPORT AND SERVICES TO 756 MILITARY MEMBERS AND THEIR FAMILIES, AND PROVIDED HUMANITARIAN AID INTERNATIONALLY. AND WHEREAS, WE HEREBY RECOGNIZE THIS MONTH OF MARCH IN HONOR OF ALL THOSE WHO LEAD WITH THEIR HEARTS TO SERVE PEOPLE IN NEED, AND WE ASK EVERYONE TO JOIN IN THIS COMMITMENT TO STRENGTHEN OUR COMMUNITY. NOW THEREFORE, BE IT RESOLVED, THAT I, BRIANNE ZORN, MAYOR OF THE CITY OF MARTINEZ, ON BEHALF OF THE MARTINEZ CITY COUNCIL, DO HEREBY PROCLAIM MARCH 2024 AS AMERICAN RED CROSS MONTH, IN HONOR OF ALL THOSE WHO LEAD WITH THEIR HEARTS TO SERVE PEOPLE IN NEED. I URGE EVERYONE TO JOIN ME IN THIS COMMITMENT TO STRENGTHEN OUR COMMUNITY. [ APPLAUSE ] >> I DON'T THINK I -- OH, OKAY. THANK YOU, MAYOR. JUST A QUICK COMMENT. WHEN I LOOK AT THE ACHIEVEMENTS OF THE AMERICAN RED CROSS IN THE COUNTY, IT HAS REALLY BEEN A GOOD YEAR IN 2023. OF COURSE, OUR GOALS ARE TO MAKE IT EVEN BETTER IN 2024. WHAT I WOULD LIKE TO COMMENT ON, THOUGH, THIS IS COUNTYWIDE, WHAT I WOULD LIKE TO DO IS MAKE SURE YOU KNOW WHAT HAPPENED IN MARTINEZ IN 2023. THERE WERE ACTUALLY 13 FIRES THAT THE RED CROSS RESPONDED TO. UNFORTUNATELY, ONE OF THOSE WAS A FATALITY FIRE. RED CROSS PROVIDED BURIAL ASSISTANCE AND ASSISTANCE FOR THAT FAMILY THROUGH THE WHOLE PROCESS. SO, THERE WERE 13 FIRES THAT OCCURRED HERE THAT THE RED CROSS RESPONDED TO. THERE ARE ONLY TWO HOUSES THAT WE PROVIDED SMOKE DETECTORS, AND THAT IS SOMETHING WE REALLY WANT TO GET OUT TO THE COMMUNITY. WE HAVE A SOUND THE ALARM PROGRAM, AND IF YOU ARE INTERESTED, OR IF YOU HAVE A NEIGHBOR THAT IS INTERESTED IN GETTING A FREE SMOKE DETECTOR INSTALLED IN THEIR HOME, YOU JUST NEED TO CALL 1-800-RED-CROSS AND WE WILL COME OUT AND INSTALL THOSE SMOKE DETECTORS. WE REALLY APPRECIATE THE SUPPORT WE HAVE GOTTEN FROM THE CITY OF MARTINEZ. I DON'T HAVE THE EXACT NUMBER OF UNITS OF BLOOD THAT WERE DONATED IN MARTINEZ, BUT WE HAVE HAD ALMOST 17,000 UNITS OF BLOOD IN THE COUNTY. THERE ARE NO BLOOD DRIVES IN MARTINEZ SCHEDULED FOR THE NEXT COUPLE OF WEEKS, BUT THERE ARE BLOOD DRIVES, IF YOU ARE INTERESTED, IN PLEASANT HILL, ANTIOCH, FRANK WOOD, AND DOWN IN SAN RAMON. SO, WE CONTINUE TO HAVE THOSE LIFE-SAVING BLOOD DRIVES. OKAY. ON BEHALF OF THE RED CROSS, THE LEADERSHIP COUNCIL, I WANT TO THANK THE MAYOR AND THE ENTIRE CITY COUNCIL FOR YOUR CONTINUED SUPPORT. THANK YOU. >> YOU JUST NEED TO SAY YOUR NAME. >> OH, I'M SORRY. TONY SEMENZA, AND I AM ON THE LEADERSHIP CONFERENCE OF THE RED CROSS. >> THANK YOU. >> ALL RIGHT. NEXT UP IS PUBLIC COMMENT. ONE SECOND. I DON'T THINK -- OKAY. ALL RIGHT. SO, PUBLIC COMMENT IS RESERVED FOR ITEMS NOT ON THE AGENDA. IT LOOKS LIKE I GOT SEVERAL SPEAKER CARDS, BUT IT IS FOR AN ITEM LATER ON THE AGENDA, SO EVERYONE WILL HAVE THREE MINUTES TO SPEAK. WE WILL START WITH SCOTT HUCKABEE, HE HAS A NON-AGENDA ITEM. IF THERE IS ANYONE ELSE WOULD LIKE TO SPEAK, I WILL CALL FOR YOU NEXT. >> ONE OF MY REASONS FOR BEING HERE TONIGHT IS THE ITEM OF ALL ELECTRIC VERSUS GAS APPLIANCES, ONE OF THE ORDINANCES OF THE CITY OF MARTINEZ PASSED SOME TIME AGO, REQUIRING THAT ALL FUTURE HOMES AND BUILDINGS BE ALL ELECTRIC. AS YOU ARE ALL WELL AWARE, I ASSUME, AND THE STAFF IS AWARE, THE PUBLIC COURT OF THE NINTH DISTRICT HAS INVALIDATED BERKELEY'S CASE, AND NO HOMES ARE BACK TO BEING GAS IN SEVERAL AREAS, INCLUDING LAST TUESDAY NIGHT, CONTRA COSTA COUNTY BOARD OF SUPERVISORS RESCINDED THE ORDINANCE. THERE ARE 15 OTHER CITIES THAT HAVE CURRENTLY DONE IT, SAN MATEO, SACRAMENTO, SANTA CRUZ, ST. LOUIS, SANTA BARBARA, LOS ALTOS, HALF MOON BAY, CARLSBAD, PALO ALTO, AND I WOULD RECOMMEND THAT THE CITY PROCEED WITH THAT SAME FOLLOWING AND RESEND THE ORDINANCE WITHIN THE NEAR FUTURE, BEFORE THE OPPOSITE OCCURS. OKAY? THANK YOU. >> THANK YOU. AS FAR AS STAFF IS CONCERNED, WERE YOU AWARE OF THAT, OR, MIKE, IS THAT SOMETHING THAT YOU WERE AWARE OF? >> YES, THAT IS. IT IS SOMETHING WE ARE ALREADY LOOKING INTO, AND WE WILL HAVE MORE UPDATES ON THIS, AT A LATER DATE. >> OKAY, THANK YOU. ARE THERE ANY OTHER PUBLIC COMMENTS IN THE COUNCIL CHAMBERS THIS EVENING? OKAY, SEEING NONE. CAN YOU CHECK THE VIRTUAL ITEMS, PLEASE? >> THIS IS PUBLIC COMMENT FOR NON-AGENDA EYES ITEMS. FOR THOSE ATTENDING THE ASSUME, I WILL CALL FOR A SHOW OF HANDS. ONLY THOSE WHO RAISE THEIR HANDS AT THIS TIME WILL BE SUBMITTING PUBLIC COMMENT. IF YOU WISH TO MAKE A COMMENT, PLEASE USE THE RAISE HAND FEATURE NOW. I HAVE NO HANDS. >> ALL RIGHT. IN THAT CASE, WE WILL MOVE ON TO THE CONSENT CALENDAR. THE CONSENT CALENDAR IS COMPRISED OF ITEMS THREE THROUGH 11. IS THERE ANYONE ON THE COUNCIL WHO WOULD LIKE TO PULL ANY OF THE ITEMS ON THE CONSENT CALENDAR THIS EVENING? ALL RIGHT. IN THAT CASE, I WILL OPEN THIS UP TO PUBLIC COMMENT. ANYONE IN THE COUNCIL CHAMBERS THIS EVENING HAVE ANY COMMENTS, REGARDING ANY ITEMS ON THE CONSENT CALENDAR? SEEING NONE. A VIRTUAL AUDIENCE? >> THIS IS PUBLIC COMMENT FOR CONSENT CALENDAR ITEMS, PLEASE USE THE RAISE HAND FEATURE NOW. I HAVE NO HANDS. >> OKAY. BRING IT BACK TO COUNSEL FOR ANY FINAL COMMENTS AND/OR A MOTION, PLEASE? >> I WOULD LIKE TO MAKE A MOTION TO PASS THE CONSENT CALENDAR, THREE THROUGH 11. >> SECOND. >> PLEASE COME ABOUT. >> MOTION PASSES. ALL AYES. >> EXCELLENT. THANK YOU, EVERYONE. MOVING FORWARD, GENERAL BUSINESS ITEM, ITEM NUMBER 12, APPROVING AMENDMENTS TO THE FISCAL YEAR 2023-24 MIDYEAR GENERAL FUND, WATERFRONT, AND MANAGEMENT INFORMATION FUND OPERATING BUDGETS, AUTHORIZING EXPENDITURES OF $55,210. CITY MANAGER, I AM JUST GOING TO START WITH YOU. >> THANK YOU, MAYOR. MIDYEAR BUDGET IS SOMETHING WE DO EVERY YEAR, AFTER YOU GUYS ADOPT THE ANNUAL OPERATING BUDGET. YOU DO THE TWO YEAR BUDGET ADOPTION BACK IN THE END OF JUNE LAST YEAR, AND NOW WE ARE BEFORE YOU TO MAKE ADJUSTMENTS THAT ARE NECESSARY TO CARRY US THROUGH THE END OF THE FISCAL YEAR. THE YEAR ENDS ON JUNE 30th. WE HAVE OUR ASSISTANT CITY MANAGER AND ACTING FINANCE DIRECTOR. FOR A FINITE PERIOD OF TIME, I WILL HAVE SOME GOOD NEWS ON THE FINANCE DIRECTOR FRONT, IN THE NEXT COUPLE WEEKS OR SO, TO PROVIDE YOU AND THE PUBLIC. BUT, I DEFINITELY WANT TO COME IN, WITH THE TEAM IN THE FINANCE DEPARTMENT, AND ALSO THE DEPARTMENT HEADS AND THEIR STAFF WORKING ON THIS PROCESS TO BRING US HERE. THE GOOD NEWS THAT WE WILL HAVE TO SHARE, AMONG SOME OTHER THINGS THAT ARE NOT SUCH GREAT NEWS, IS THAT YOU'LL NOTE THAT TONIGHT, OUR REQUEST, WE ARE NOT ASKING FOR ANY MONEY TO COME FROM RESEARCH TO CARRY US TO THE END OF THE YEAR. WE DID LAST YEAR IN AN ABUNDANCE OF CAUTION TO MAKE SURE WE WERE VERY CONSERVATIVE TO GET US THROUGH THE LAST FISCAL YEAR BUT THIS YEAR, WE ARE NOT ASKING THAT, WE ARE JUST MOVING AROUND FUNDS THAT ARE AVAILABLE WITHIN THE BUDGET ITSELF. WITH THAT, I WILL TURN IT OVER TO LAUREN AND SHE WILL GET US TO OUR PRESENTATION. >> THANK YOU, CITY MANAGER. I BELIEVE KAT WILL BE PULLING UP MY PRESENTATION. BEFORE WE GET STARTED HERE, I DO WANT TO EXPRESS MY THANKS TO THE EXECUTIVE TEAM AND ALL OTHER DEPARTMENT MANAGERS. ANY TIME WE DO THE BUDGET, IT'S A MULTI-WEEK, MULTI-MONTH PROCESS. EVERYBODY PROVIDES INPUT, IN ORDER TO GET WHERE WE ARE AT TODAY. SO, THANK YOU TO ALL STAFF WHO HELPED OUT. ALSO, THANKS TO MIKE FOR HIS TRUST IN THE FINANCE TEAM, AND INCLUDING MARTY FARLEY, WHO IS OUR CONTRACTED BUDGET CONSULTANT. HE HAS BEEN WITH US NOW FOR THE LAST LAST FOR USE, SO SHE SHOULD BE A FAMILIAR NAME. AND MARTY WILL ACTUALLY BE PROMOTING ON THIS SCREEN TONIGHT. SO, SHE IS A CRITICAL ROLE ON THE DAY-TO-DAY MONITORING AND DEVELOPMENT OF OUR BUDGET, SO SHE WILL BE HERE TO ANSWER QUESTIONS, IF NEED BE. ALL RIGHT, SO, BACK TO THE BEGINNING. ON JUNE 28th, THE COUNCIL ADOPTED THE BIENNIAL BUDGET FOR JULY 1st, 2023, THROUGH JUNE 30th, 2025. THE ADOPTED GENERAL FUND BUDGET WAS $41.5 MILLION. SINCE THEN, WE HAVE TRANSFERRED $5 MILLION IN AMERICAN RESCUE FINITE FUNDS TO A SEPARATE RESCUE FUND TO BETTER TRACK AND REPORT THE USE OF THOSE DOLLARS. AS YOU ALL KNOW, WE HAVE TO REPORT OUT HOW WE ARE EXPENDING THOSE FUNDS. THE REALLOCATED GENERAL FUND BUDGET IS $36.5 MILLION. STAFF HAS COMPLETED A THOROUGH REVIEW OF REVENUES AND EXPENSES, BASED UPON INFORMATION, UP THROUGH SEVEN MONTHS OF THIS FISCAL YEAR AND WE ARE HERE TONIGHT TO PRESENT THE FINDINGS. SO, STAFF IS CLOSELY MONITORING OUR LOCAL ECONOMIC CONDITIONS AND HOW THEY IMPACT OUR BUDGET. WE ARE EXPERIENCING A SOFTENING OF CONSUMER SALES, A MODEST INCREASE IN HOME SALE PRICES, RESULTING IN HIGHER PROPERTY TAXES THAN WHAT WAS ORIGINALLY BUDGETED, STRONG INTEREST EARNINGS, AND INCREASED PARKING CITATION REVENUES. WITH ALL THAT SAID, WE EXPECT TO BE BELOW OUR BUDGETED REVENUE BY $346,000. THE MAJOR DRIVERS OF THIS DECLINE INCLUDE SALES TAX WITH A PROJECTED REVENUE DECLINE OF JUST OVER $178,000. THIS IS, AGAIN, DUE TO DECLINING CONSUMER SALES AND WEAKENED DEMAND IN KEY MARKET SECTORS. THIS IS ALSO CONSISTENT WITH TRENDS WE ARE SEEING ACROSS THE DATE AND NATION AS CONVEYED TO US THROUGH TAX SALES CONSULTANTS, WHEN WE GET QUARTERLY REPORTS. CANNABIS REVENUE HAS A PROJECTED REVENUE DECLINE OF $200,000. CANNABIS REVENUES ARE BASED ON A PERCENTAGE OF GROSS SALES RECEIVED FROM THE CITY'S TWO CANNABIS RETAILERS. THIS DECLINE IS CONSISTENT WITH STATEWIDE TRENDS AND IT IS LIKELY A SIGN THAT THE CANNABIS BOOM THAT BEGAN WITH THE PASSAGE OF PROP 64 IS BEGINNING TO FIZZLE OFF JUST A LITTLE BIT. THERE IS A PROJECTED REVENUE DECLINE OF ROUGHLY JUST OVER $207,000 IN CHARGES FOR SERVICES. CHARGES FOR SERVICES ACCOUNTS FOR THE FEES THAT WE COLLECT FROM CUSTOMERS WHEN THEY COME IN THROUGH THE DOOR TO RETRIEVE SERVICES FROM US. WE ARE PROPOSING TO ADJUST THE PROJECTED REVENUE AFTER RE-EXAMINATION OF OUR INITIAL BUDGET PROJECTIONS. THESE TRENDS THAT I HAVE JUST LAID OUT TO YOU WERE CONVEYED IN THE FIRST QUARTER BUDGET REPORT THAT STAFF PROVIDED TO BUDGET AND FINANCE SUBCOMMITTEE IN DECEMBER OF 2023. BUDGETED EXPENSES ARE UP BY JUST OVER $761,000, LARGELY DUE TO UNANTICIPATED EVENTS AND CITY INITIATIVES. THESE INCLUDE EXPENSES RELATED TO THE MEASURE A ELECTION, WHICH OCCURRED LAST NIGHT, THE CONVERSION OF THE ELECTED CITY CLERK TO AN APPOINTED POSITION. EXPENSES RELATED TO THE REBUILDING OF THE FINANCE DEPARTMENT --AND YOU MAY RECALL I VISITED THE COUNCIL IN NOVEMBER TO DETAIL THE STATUS OF FINANCE OPERATIONS AND THE WORK WE WERE DOING TO ADDRESS A MAJOR STAFFING SHORTAGE AND BACKLOG OF WORK. ADDITIONAL POLICE EXPENSES, THIS IS RELATED TO LEGAL REPRESENTATION, INSURANCE, AND INVESTIGATION COSTS RELATED TO LAST YEAR'S CREDIBLE INCIDENT, MINOR UPGRADES TO OUR POLICE FACILITY, PRIVATE SECURITY COSTS THAT THE WEEKLY HOMELESS SHOWERS, AND LASTLY, THE IMPLEMENTATION OF A NEW PARKING CITATION VENDOR. WHICH, BY THE WAY -- I WILL DESCRIBE LATER ON IN OUR REPORT --WE ARE ACTUALLY ABLE TO COVER, THANKFULLY, WITH ADJUSTED BUDGET INCREASES IN PARKING CITATION REVENUE. AND LASTLY, EXPENSES RELATED TO NEW ECONOMIC DEVELOPMENT INITIATIVES, WHICH SUPPORT MARKETING, PERMITTING, STREAMLINING EFFORTS, CONTRACT SUPPORT, TRAINING NEEDS, AND PROFESSIONAL MEMBERSHIPS. AND AGAIN, YOU HAVE THE EXECUTIVE TEAM HERE TONIGHT, SO IF YOU HAVE ANY QUESTIONS ON THE EXPENSES I JUST WENT OVER HERE, WE ARE HAPPY TO ANSWER YOUR QUESTIONS. SO, HOW DO WE ADDRESS THESE NEEDS? AS MIKE MENTIONED EARLIER, PAST MIDYEAR BUDGET EXERCISES, STAFF WILL ADDRESS UNANTICIPATED COST INCREASES THROUGH REQUESTING FROM YOU, THE COUNCIL, AN INCREASE IN THE GENERAL FUND APPROPRIATION. THIS YEAR, WE ARE APPROACHING IT BY FIRST, BEFORE COMING TO YOU, IDENTIFYING AREAS OF COST SAVING, THEN PROPOSING TO REALLOCATE THOSE COST SAVINGS TO AREAS OF NEED. THIS IS A MORE FISCALLY PRUDENT AND RESPONSIBLE APPROACH TO OUR MIDYEAR BUDGETING. IT ALSO AFFORDS --AS MIKE MENTIONED EARLIER -- IT AVOIDS US FROM HAVING TO DIP INTO OUR RESERVES. THEREFORE, WE ARE PROPOSING TO ADDRESS THESE NEEDS IN THE FOLLOWING WAYS --TO REALLOCATE $150,000 FROM THE CONTINGENCY FUND, THIS IS A PROGRAM THAT IS ESTABLISHED TO COVER UNANTICIPATED COSTS. SO, IT IS EXACTLY FOR THIS KIND OF PURPOSE. REALLOCATE JUST OVER $197,000 IN UNUSED PROFESSIONAL SERVICE FUNDS. THESE CONSIST OF CONSULTANT -RELATED SAVINGS, WITHIN HUMAN RESOURCES, POLICE ENGINEERING --OR, I'M SORRY -- ENGINEERING AND THE CITY MANAGER'S OFFICE, AND EVEN SOME PROGRAM SAVINGS WITHIN THE POLICE BUDGET, AS WELL. REALLOCATE JUST OVER $30,000 FOR MISCELLANEOUS ACCOUNTS. MAINLY, THIS IS A REALLOCATION FROM PUBLIC WORKS TO POLICE FOR PROJECTED UNMET LIABILITY CLAIMS. USE OF JUST OVER $35,000 IN PARKING REVENUES TO FUND THE NEW PARKING VENDOR THAT I MENTIONED EARLIER. AND THEN, TO REALLOCATE JUST OVER $347,000 IN LABOR SAVINGS, SO ESSENTIALLY THIS STEMS FROM --YOU KNOW, AT THE BEGINNING OF THE FISCAL YEAR, YOU, THE COUNCIL, ADOPT A BUDGET THAT BUDGETS FOR ALL BUDGETED POSITIONS. WE DON'T TEND TO FILL THOSE POSITIONS RIGHT AWAY, SO A LOT OF THOSE SAVINGS STEM FROM VACANCIES THAT WERE FILLED LATER IN THE YEAR. AND EVEN SOME VACANCIES, WE HAVE A FEW STILL REMAINING TODAY. OKAY, OTHER FUNDS --BEFORE YOU TONIGHT, YOU ALSO HAVE A PROPOSAL TO ALLOCATE $55,210 FROM OUR PUP. $12,500 OF THIS WILL SUPPLEMENT THE CULTURAL EVENT GRANT PROGRAM, BASED ON THE INTEREST FROM THE COMMUNITY THAT WE HAVE HEARD, THIS CAME UP WHEN WE SPOKE ABOUT SPECIAL EVENTS IN JANUARY. I BELIEVE MANY OF YOU HAVE ALSO HEARD SUPPORT FOR INCREASING THIS GRANT AMOUNT. WITH THIS ALLOCATION OF JUST OVER $12,000, WHAT WE AIM TO DO, IS PROVIDE A GRANT OF UP TO $5000 FOR THE 2024 LUNAR NEW YEAR EVENT, WHICH JUST HAPPENED. THE 2024 JUNETEENTH EVENT, AND THE 2024 PRIDE FESTIVAL. WE STILL WILL HAVE SOME FUNDS LEFT OVER, IN CASE NEW EVENTS TO POP UP BETWEEN NOW AND THEN. ALSO, JUST OVER $30,000 TO SUPPLEMENT THE 2024 FIREWORKS SHOW. YOU MAY RECALL THE FIREWORKS DISPLAY LAST YEAR WAS FUNDED THROUGH ARPA. THIS AMOUNT HERE COVERS ALL EXPENSES RELATED TO THE ACTUAL DISPLAY ITSELF, AND STAFFING COSTS ASSOCIATED WITH THE EAST BAY REGIONAL PARK DISTRICT. IN PRIOR YEARS, EAST BAY REGIONAL PARK DISTRICT DIDN'T CHARGE ANYTHING, THE USUALLY STAFFED SEVERAL POSITIONS OUT AT THE WATERFRONT. LAST YEAR, THEY STARTED CHARGING US THE OVERTIME COSTS, AND THEY ARE GOING UP EVERY YEAR. SINCE WE EXPECT TO DEPLETE OUR REMAINING ARPA FUNDS SOON, STAFF WILL BE ESTABLISHING A SPONSORSHIP PACKAGE FOR THESE AND OTHER RECREATION PROGRAMS CAN RECEIVE OUTSIDE FUNDS TO ALLEVIATE THE PRESSURE ON THE GENERAL FUND FOR THESE INITIATIVES, GOING FORWARD. SO, I KNOW THIS IS SOMETHING THAT SOME COUNCILMEMBERS HAVE ASKED ABOUT. WE LOOK FORWARD TO DEVELOPING THAT, PROBABLY WITHIN THE NEXT MONTH, SO WE CAN TRY TO SEEK OUT FUNDS FOR THESE EVENTS. AND THEN, LASTLY, THERE IS A REQUEST FROM CERT FOR AN ARPA ALLOCATION OF $11,900. THIS IS RELATED TO THE MAINTENANCE OF CERT EQUIPMENT, NEW SAFETY EQUIPMENT, AND MISCELLANEOUS EXPENSES. OKAY, NEXT IS THE WATERFRONT. THE WATER FUND, WE ARE PROPOSING AN INCREASED APPROPRIATION OF JUST OVER $81,000. THIS IS DUE TO INCREASED PG&E, STEMMING FROM INCREASED RATES. WE ARE ALSO PROPOSING AN INCREASED APPROPRIATION OF $50,000 IN THE MANAGEMENT INFORMATION SYSTEM FUND. THIS WILL PAY FOR NEW CABLING ASSOCIATED WITH ALL THE RENOVATIONS WE ARE DOING TO THE UPSTAIRS AND DOWNSTAIRS. SO, AS YOU CAN IMAGINE, A LOT OF OUR CABLING THAT WAS INTERWOVEN THROUGH ALL OF THE OLD CUBICLES HAS TO GET TAKEN AWAY, AND WE NEED TO BUILD NEW CABLING SO THAT IT CAN SUPPORT OUR GROWING WORKFORCE. LASTLY, STAFFING AND ORGANIZATIONAL ADJUSTMENTS THAT ARE PROPOSED THROUGH THIS MIDYEAR BUDGET INCLUDE THE PROPOSAL TO REORGANIZE THE FINANCE DIVISION TO A FINANCE DEPARTMENT, AND TO TRANSITION A BUDGETED POSITION OF THE SENIOR ACCOUNTANT TO THE FINANCE MANAGER. THIS WAS PROPOSED TO THE COUNCIL WHEN I GAVE AND GAVE A FINANCE UPDATE IN NOVEMBER. AT THAT TIME, THE COUNCIL SEEMED TO SUPPORT THIS NOTION. THE REORGANIZATION IN FINANCE KIND OF HELPS US TO FURTHER ALIGN OUR OPERATION WITH MODERN-DAY BEST PRACTICE AND ENSURE PROPER OVERSIGHT OVER ITS NUMEROUS FUNCTIONS. WE ARE ALSO PROPOSING TO TRANSITION IN BUDGETED POSITIONS FROM A POLICE ASSISTANT TO DISPATCHER. THIS WOULD HELP ALLEVIATE MARTINEZ POLICE OFFICERS FROM NEEDING TO COME OFF PATROL TO STAFF THE DISPATCH CENTER. WHEN IT IS UNDERSTAFFED, WHICH HAPPENS RIGHT NOW. SO, THIS IS A PRETTY DESPERATE NEED INSIDE OF OUR DISPATCH CENTER. THE TOTAL OF THIS COST WOULD BE $14,000 AND IT WOULD BE ABSORBED THROUGH COST SAVINGS RELATED TO LABOR. AS WE LOOK AHEAD AT OUR NEXT STEPS TONIGHT, WE ARE SEEKING THE ADOPTION OF THE FISCAL YEAR 2023-24 MIDYEAR BUDGET. BETWEEN MARCH AND MAY, STAFF WILL DEVELOP THE 2024-25 MIDYEAR BUDGET. IN MID-MAY, WE WILL HOLD A BUDGET WORKSHOP WITH THE COUNCIL, AND THIS WILL ALSO BE AN OPPORTUNITY TO HAVE A CONVERSATION AROUND THOSE REMAINING ARPA FUNDS. BETWEEN MAY AND JUNE, STAFF WILL INCORPORATE THE INPUT FROM THE BUDGET WORKSHOP AND THEN WE ANTICIPATE THE ADOPTION OF THE MIDCYCLE BUDGET ON JUNE 26, 2024. ALL RIGHT, LASTLY, LOOKING OUT AHEAD, ALTHOUGH -- AS MIKE MENTIONED --WE ARE OPTIMISTIC ABOUT HOW WE ARE GOING TO CLOSE THIS FISCAL YEAR BECAUSE WE WERE ABLE TO IDENTIFY A LOT OF COST SAVINGS TO ADDRESS UNMET NEEDS, WE KNOW THAT THERE ARE CHALLENGES AHEAD THAT NEED TO BE ADDRESSED THROUGH DISCIPLINE AND FISCAL PLANNING THROUGH OUR MIDCYCLE BUDGET AND THE UPCOMING TWO YEAR BUDGET THAT WILL FOLLOW THAT. WE WILL BE IMPACTED BY THE DEPLETION OF ONE TIME ARPA FUNDS, WHICH MUST BE ALLOCATED BY THE END OF THIS CALENDAR YEAR. AND SPENT BY THE END OF THE 2026 CALENDAR YEAR. WE WILL BE IMPACTED BY RISING PENSION COSTS, WHICH WE EXPECT WILL INCREASE NEXT FISCAL YEAR BY $600,000. WE DO LOOK FORWARD TO GETTING AN ADVANCED LOOK OF WHAT THAT LOOKS LIKE IN FUTURE FISCAL YEARS. AND THEN, THE MIDCYCLE BUDGET --WHAT STAFF WILL BE DOING, IS TAKING AN APPROACH OF CONTROLLED SPENDING WITH A CONTINUED FOCUS ON COST RECOVERY EFFORTS. AS YOU KNOW, LOOKING OUT AHEAD JUST IMMEDIATELY, WE HAVE PROPOSED INCREASES TO THE WATER RATES THAT WILL BE COMING IN FRONT OF THE COUNCIL IN A PUBLIC HEARING ON APRIL 17th. THESE NEW RATES WILL HELP US SUSTAIN OPERATIONS AT THE PLANT AND WITHIN THE DISTRICT OF WATER. WE ALSO INCREASE RECREATION FEES, WHICH WILL COME FOR A PUBLIC HEARING ON MARCH 20th, OUR NEXT MEETING. OUR CURRENT COST RECOVERY RATE IS 29%, IN RECREATION, WHICH IS NOT, OBVIOUSLY, KEPT THE PACE OF COST OF LABOR, CHEMICALS, AND FACILITY MAINTENANCE. I THINK, YOU KNOW, IF YOU JUST LOOK AT OUR RECREATION FEES ACROSS THE BOARD, SOME OF THEM --YEAH, THE LAST UPDATE WAS 2019, BUT SOME OF THEM GO BACK AS FAR AS 10, 15 YEARS. CLEARLY, WE HAVE HAD SIGNIFICANT INCREASES, SO WE LOOK FORWARD TO HAVING THAT CONVERSATION WITH THE COUNCIL NEXT MEETING. AND THEN, LASTLY, THERE ARE UPCOMING INCREASE ADMINISTRATIVE FEES TO BE IN FERMENTED --IMPLEMENTED JULY 1, THIS IS PHASE TWO OF WHAT THE COUNCIL ADOPTED LAST MAY WHEN THIS CITY MANAGER BROUGHT FORWARD THE PROPOSED ADMINISTRATIVE FEE INCREASES. ANOTHER APPROACH WE WILL TAKE WITH THE MIDCYCLE BUDGET JUST TO PREPARE THE COUNCIL IS TO PRIORITIZE FUNDING CORE SERVICES. IN OTHER WORDS, THIS IS LIVING WITHIN OUR MEANS. FINANCE BETWEEN NOW AND THEN WILL WORK WITH DEPARTMENTS TO FIGURE OUT WHAT OUR BASELINE SERVICES ARE. SIMILAR TO HOW WE MANAGE OUR HOUSEHOLDS, THERE ARE THINGS WE MUST PAY FOR, LIKE FOOD, WATER, AND UTILITIES, WHICH IS OUR BASELINE. AND THEN, THERE ARE THINGS THAT ARE NICE TO HAVE WHEN WE CAN AFFORD THEM. SO, WE REALLY WANT TO START TO DEFINE THAT, AND WHAT THAT MEANS TO US. AND THEN, LASTLY, LONG-TERM FINANCIAL FORECASTING WILL BE IMPLEMENTED WITH THE UPCOMING TWO YEARS. SO, THE FISCAL YEAR OF 2025 THROUGH 2027 BUDGET. MULTIYEAR FORECASTING IS A BEST PRACTICE MANY CITIES USED TO ENSURE THEY HAVE A GRASP ON HOW FINANCIAL DECISIONS THEY MAKE TODAY WILL IMPACT THEM LATER DOWN THE ROAD. SO, WE ABSOLUTELY LOOK FORWARD TO A NEW FINANCE DIRECTOR WHO CAN BRING THAT NEW SKILL SET, AND THAT TECHNICAL EXPERTISE, SO THAT WE CAN HAVE REALLY IMPORTANT FINANCIAL CONVERSATIONS IN THE FUTURE ON STRATEGIES THAT WE CAN CONSIDER. SO, I THINK THAT THE LAST SLIDE HERE IS JUST THE RECOMMENDATION. AND WITH THAT, I WILL TURN IT OVER TO YOU. >> GREAT, THANK YOU. EXCUSE ME -- CAN YOU GO BACK TO THE SLIDE ABOVE THE SCHEDULE? JUST BECAUSE -- YEAH, THAT ONE. OR, NO, I'M SORRY, THE NEXT SLIDE, THAT ACTUALLY TALKS --THE SCHEDULE OF THE MEETINGS AND --THERE WE GO, THANK YOU. SO, THE MIDYEAR ADJUSTMENTS, BUT THEN THE JUNE 2024 MIDCYCLE BUDGET WILL THEN COVER THE FINAL YEAR. WHEN WILL WE BE DOING THE 2025-2027 TWO YEAR BUDGET REVIEW? WHEN WILL THAT START? >> SO, THAT WILL START AS EARLY AS THIS UPCOMING DECEMBER. WE START A SIX MONTH PROCESS -- WE FIRST STARTED INTERNALLY --AND PLEASE, IF I AM WRONG ON THIS, LET ME KNOW --BUT WE WILL START AS EARLY IN DECEMBER AT THE END OF THE YEAR, AND IT IS A MULTIWEEK, MULTI-MONTH PROCESS. EVENTUALLY, THE COUNCIL WILL ADOPT IT, I JUNE OF NEXT YEAR. DID I GET THAT RIGHT, CITY MANAGER? >> DECEMBER, JANUARY. SO -- SO, THE WORK DOES START UP, LEADING INTO THE GOAL SETTING SESSION WITH COUNSEL, AND THAT IS -- YOU KNOW, FEBRUARY IS REALLY THE BEST TIME FOR THAT, LIKE WE HAVE SEEN THE LAST COUPLE OF CYCLES. SO, WE WILL BE PLANNING THAT FOR FEBRUARY OF 2025 FOR THE UPCOMING CYCLE. BUT, THERE IS SOME PREPARATORY WORK THAT WE WILL BE DOING IN THE BACKGROUND, GETTING READY FOR THAT, AND ALSO PREPARING FOR THE MIDYEAR, FOR THE NEXT FISCAL YEAR, WHICH IS FISCAL YEAR '25. SO, ALL OF THIS KIND OF WORKS TOGETHER, BUT IF WE CAN START SOMETHING IN DECEMBER IN EARNEST, THERE IS SO MUCH NARRATIVE COMPONENTS TO FORMULATING SOME OF THE BASIS OF THE DEPARTMENTS COMMERCIAL SOME OF THE SHIFTS, THERE ARE GOING TO BE CLEANUPS IN THE NEXT CYCLES. SO, YOU DON'T WANT TO START THIS IN JANUARY, I WILL SAY THAT. IF WE CAN START IN DECEMBER, THAT IS GREAT, TOO. THE FINANCE DIRECTOR WILL HAVE A LOT OF SAY IN THAT, SO -- >> AND AGAIN, FISCAL YEAR 2025 STARTS ON WHAT DATE? >> JULY 1st. IT IS JULY 1st OF 2024, ALL THE WAY THROUGH JUNE 30th OF 2025. SO, WHEN WE SAY FISCAL YEAR '25, IT IS THE YEAR THAT IT ENDS, THE BACK HALF OF IT. AND THAT IS WHAT THIS MIDCYCLE DISCUSSION, IS GOING TO BE FOR THIS UPCOMING SPRING, THAT SECOND YEAR OF THE TWO YEAR BUDGET OF 2025. >> SORRY, THAT'S WHY I WAS A LITTLE BIT CONFUSED, BECAUSE WE WILL TALKING ABOUT THE FISCAL YEAR 2025 BUDGET, BUT WE WEREN'T GOING TO START IT UNTIL THE END OF 2024, SO WE WOULD BE SIX MONTHS IN, SO I WAS CONFUSED ABOUT THE SCHEDULE. >> I THINK YOU ARE CORRECT ON THAT. >> OKAY. >> OKAY, THANK YOU. ANYBODY HAVE ANY QUESTIONS FOR ANY OF THESE ITEMS? AND TO CLARIFY, YOU ARE ASKING FOR DIRECTION ON THE ARPA ALLOCATIONS? WERE THERE ANY OTHER REQUESTS AS PART OF THIS FOR US TO DISCUSS RIGHT NOW?, BESIDES THE ADDITIONAL QUESTIONS FOR YOU? >> NOPE. >> ALL RIGHT. DOES ANYBODY HAVE ANY QUESTIONS FOR LAUREN? YEAH, GO AHEAD. >> THANK YOU, LAUREN. YOU DID VERY WELL. >> THANK YOU. >> GOOD JOB. WHAT I WILL IS ASK, WE WILL COME BACK TO THIS AGAIN, A COUPLE QUESTIONS, AND MAYBE THE FINANCE DIRECTOR CAN PROVIDE, I AM ALWAYS INTERESTED IN ROLLOVER AMOUNT, AND WHETHER IT IS, DID WE BUDGET CORRECTLY? HOW FAR DID WE OVERBUDGET, UNDER BUDGET? THAT IS ALWAYS OF INTEREST TO ME, HOW SURE IT IS IN FORECASTING DEPARTMENTAL NEEDS, OR REVENUES, OR EXPENDITURES AS A WHOLE. SO, IT IS ALWAYS GOOD TO SEE HOW FAR OFF THE MARK THE NEEDLE IS. AND BY THE WAY, WE DO HAVE AN ORDINANCE THAT SAYS IF WE HAVE AN OVERAGE, AND WE DIDN'T SPEND EVERYTHING, THEN 50% OF IT HAS TO GO INTO PENSION AND INFRASTRUCTURE. SO, WHATEVER THAT IS. AND THE OTHER HALF CAN GO BACK TO WHERE IT NEEDS TO GO. JUST A REMINDER. SO, KNOWING THAT AMOUNT --AND PART OF THAT, A SUBSET OF THAT QUESTION IS ALSO, AS YOU MENTIONED, THE REAL ESTATE PROPERTY TAXES ARE BECOMING GREATER THAN EXPECTED. I KNOW THAT FOR ALMOST ALL OF MY TENURE, THAT HAS ALMOST ALWAYS BEEN THE CASE, WITH THE EXCEPTION OF 2009, 2010, AND I THINK ODDLY IN 2015. BUT, MOST OF THE TIME, WE FIGURE CONSERVATIVELY, WHICH IS GOOD, AND WE GET MORE THAN WE USUALLY GET, AND I USUALLY ARGUE WITH THE FINANCE DIRECTOR, JUST BECAUSE THEY ALWAYS SAY IT'S GONNA BE 1% OR 2%, BUT ROUGHLY, IT IS STILL CLOSE TO 45% OF OUR HOUSEHOLDS HAVE NOT CHANGED HANDS SINCE PROP 13. SO, THAT'S GOOD. THAT'S KIND OF MONEY IN THE BANK. BUT, THE DOWNSIDE IS, WHICH IS WHY I'M ASKING YOU THIS, LET'S REVISIT THAT PROJECTION ON REVENUE FROM PROPERTY TAXES, BECAUSE A NUMBER OF TRANSACTIONS ARE GOING TO BE DOWN. IT'S STILL --INVENTORY IS STAYING VERY LOW. SO, THAT PROJECTION IS USUALLY BASED ON A CERTAIN NUMBER OF TRANSACTIONS. SO, SOMETHING FOR -- AND THAT'S ALWAYS --THE ONLY REASON I BRING THIS UP, AS THOSE USUALLY IN MY EXPERIENCE, THOSE AREAS WHERE THE NEEDLE GOES THREE TO $700,000 OFF THE MARK. SO --WHICH IS, FOR US, SUBSTANTIAL. THANK YOU. >> I WOULD JUST ADD THAT YOU HIT A COUPLE GREAT POINTS. ONE IS, OR FISCAL POLICIES. WITH THE UPCOMING TWO YEAR BUDGET, THERE WILL BE AN OPPORTUNITY FOR THE UPCOMING FINANCE DIRECTOR TO REVIEW THOSE. IS THIS MAKING SENSE? DO WE NEED TO ADJUST ANYTHING THAT IS APPROPRIATE WITH THE TWO YEAR BUDGET? TO YOUR POINT ABOUT HOW ACCURATE WE ARE WITH THE BUDGET, I THINK WITH THE COUNCILS IN SUPPORT OF FINANCE THIS YEAR, WITH A LINE OF ONE TIME EXPENSES TO REBOOT OUR OPERATION AND SHARPEN OUR ACCOUNTING, IT IS ONLY UP FROM HERE AND I THINK THAT IS GOING TO IMPROVE OUR ACCURACY OVERALL WITH BUDGETING. SO, I LOOK FORWARD TO THAT, AND I THINK THE NEW FINANCE DIRECTOR WILL REALLY TAKE THINGS TO THE NEXT LEVEL. >> OKAY, TWO FOLLOW-UPS. ONE, I FORGOT TO MENTION ABOUT PENSIONS. YOU KNOW, WE USED TO FUND OPED, AND MADE A DEDICATED EFFORT TO FUND OPED. AND WHERE WE ARE HISTORICALLY WITH THAT. AND LASTLY, YOUR ACUMEN CAN HOPEFULLY BE IMPROVED, AND WITH THE IMPROVEMENTS THAT YOU CITED. BUT, THERE'S ALWAYS THE UNPLANNED CITY INITIATIVES FROM FOUR OR FIVE PEOPLE THAT JUST MUCK IT ALL UP. ANYWAY, THANK YOU. >> THANK YOU, LAUREN, AGAIN, FOR THAT VERY INFORMATIVE PRESENTATION. SO, A QUESTION AND A COMMENT. COMMENT IS, I THINK THIS IS A VERY SOBERING ASSESSMENT HERE, IN TERMS OF THE CHALLENGES THAT LIE AHEAD. I THINK THIS IS A VERY REASONABLE PLAN THAT HAS BEEN LAID OUT, IN TERMS OF WEATHERING THIS. BUT, I THINK IT DOES SORT OF REITERATE MY BELIEF OF HOW IMPORTANT CRITICALLY IT IS NOW FOR US TO MOVE IN EARNEST TO DEVELOP A COMPREHENSIVE PLAN TO RETAIN AND RECRUIT NEW BUSINESSES TO HELP BOLSTER OUR SALES TAX AND REVENUES. IT'S SO, SO KEY FOR US. I KNOW WE HAD A GREAT PRESENTATION AT OUR LAST COUNCIL MEETING, AND I KNOW THAT EVERYONE SHARES THAT DESIRE, AND I'M REALLY EXCITED ABOUT THAT. ONE THING THAT I ALSO COULDN'T HELP BUT THINK IS THE MAYOR AND I WERE ACTUALLY AT A LEAGUE OF CALIFORNIA CITIES MEETING RECENTLY WHERE WE WERE AT A PRESENTATION ABOUT THE STATE BUDGET DEFICIT. IT IS QUITE SIGNIFICANT. DEPENDING ON WHO YOU BELIEVE, LAL HAS ONE NUMBER, GOVERNOR HAS A NUMBER, BUT WE ARE LOOKING AT PROBABLY ONE OF THE WORST ESTATE BUDGET DEFICITS IN THE HISTORY OF THIS CYCLE. WHAT WAS CLEAR COMING OUT OF THAT MEETING IS THAT THERE ARE GOING TO BE SOME VERY DIFFICULT DECISIONS THAT ARE GOING TO HAVE TO BE MADE IN SACRAMENTO THIS YEAR WHICH WILL, UNFORTUNATELY, MOST LIKELY, TRICKLE DOWN TO LOCAL JURISDICTIONS, INCLUDING OURS. AND SO, YOU KNOW, ONE OF THE THINGS, TAKEAWAYS FROM THAT MEETING, FROM ONE OF OUR STATE REPRESENTATIVES WAS, NOW IS THE TIME FOR MUNICIPALITIES TO BEGIN LOOKING THROUGH THEIR BUDGETS, SEEING WHAT PERCENTAGE --WHAT IS THE AMOUNT OF REVENUES OF OUR OVERALL BUDGET, IN TERMS OF WHAT WE DRIVE FROM THE STATE, ESSENTIALLY. WE NEED TO BE ABLE TO BE PREPARED TO GO FORWARD WITH A LIST OF OUR PRIORITIES, LIKE, WHAT CAN WE ABSOLUTELY NOT -- WE NEED THIS. YOU KNOW? WE HAVE TO START THINKING THROUGH THAT. SO, THAT IS JUST ONE NOTE THAT I JUST WANTED TO PASS ALONG, BECAUSE IN LOOKING AT THE TIMELINE HERE, THE LEGISLATURE HAS A CONSTITUTIONAL DEADLINE TO ADOPT THEIR BUDGET BY THE END OF JUNE. SO, WE WILL HAVE A PRETTY GOOD SENSE IN TERMS OF THE POTENTIAL HITS THAT ARE COMING --AND I KNOW, HOPEFULLY, OUR FINANCE DIRECTOR WILL BE ON TOP OF THAT. BUT, I DID JUST WANT TO PUT THAT NOTE OF CAUTION OUT THERE, THAT WE NEED TO BE THINKING ABOUT A CONTINGENCY PLAN, BECAUSE AS MUCH AS I WOULD LIKE TO SAY THAT IS ALL UP IN SACRAMENTO, WE DON'T HAVE TO WORRY ABOUT THAT, HAVING WORKED IN THAT KIND OF ARENA, I CAN TELL YOU THAT LOCAL JURISDICTIONS AND CITIES ARE GOING TO GET IMPACTED AND MARTINEZ NEEDS TO BE PREPARED. SO, I KNOW A LOT OF GREAT EFFORT HAS BEEN PUT IN HERE, BUT OUR FINANCE DIRECTOR, WHOEVER HE OR SHE MAY BE, WE MAY NEED TO PLAN FOR THAT, AS WELL. SO, THANK YOU. >> I JUST WANT TO SAY, THANK YOU, LAUREN, FOR THAT COMPREHENSIVE PRESENTATION. YOU ARE DOING DOUBLE, TRIPLE DUTY, AND HOLDING THE FINANCE DIRECTOR POSITION IN ADDITION TO YOUR POSITION, YOU HAVE DONE A GREAT JOB. SO, THANK YOU. I KNOW RELIEF IS ON THE WAY BECAUSE A FINANCE DIRECTOR WILL SOON BE ANNOUNCED, THEN YOU CAN TRANSITION WHAT YOU HAVE DONE, WHAT YOU HAVE PUT IN PLACE, TO THE NEW DIRECTOR AND IT IS ALL A MYSTERY, WE ARE VERY ANXIOUS TO HEAR. BUT, I JUST HAVE ONE LITTLE QUESTION. FIRST OFF, I AM GLAD THAT WE ARE GOING TO BE ABLE TO SUPPORT THE CULTURAL EVENTS WITH THE $5000 GRANTS. I THINK THAT IS PRETTY IMPORTANT. I KNOW WE ARE MAKING SURE TO REFLECT ALL CULTURES, AND HAVE THAT MONEY AVAILABLE FOR THEM TO BE ABLE TO HAVE PRESENTATIONS LIKE THE ONE WE SAW FOR THE NEW YEAR, WHICH WAS AMAZING, THAT WOULD BE NICE. BUT, THE QUESTION I HAVE IS ABOUT IN EAST BAY REGIONAL PARK. YOU MENTIONED FOR THE FIRST TIME, THEY WERE CHARGING US FOR SERVICES THAT THEY PROVIDED, AROUND THE FOURTH OF JULY, WAS IT? I JUST THOUGHT THAT WAS INTERESTING, BECAUSE WE TEND TO DO A LOT OF COLLABORATION, AND I JUST FOUND THAT SURPRISING. I WAS WONDERING, IS THAT A NEW PRACTICE? OR, IS THAT AN ACCIDENT? BECAUSE WE HAVE QUITE A LONG HISTORY OF SUPPORTING EACH OTHER AND VARIOUS NEEDS AND PROJECTS, SO I THOUGHT THAT WAS KIND OF AN INTERESTING CALLOUT THAT YOU MADE. IT MAY OR MAY NOT BE A SIGNIFICANT AMOUNT OF MONEY, BUT I WOULD THINK THAT WE COULD WORK BETTER COLLABORATIVELY, AND I WAS KIND OF SURPRISED TO HEAR THAT. >> NO, SURE, THERE IS A HISTORY. I KNOW WITH OUR PARTNERSHIP WITH THEM, TO SHARE COSTS WHERE IT MAKES SENSE, THE WORD WE GOT IS THAT THINGS ARE CHANGING AT THE DISTRICT. I DON'T KNOW WHAT THE FINANCIAL SITUATION IS, BUT MY GUESS WOULD BE THAT THEY ARE STARTING TO TIGHTEN THE BELT. SOME OF THE FREEBIES ARE, YOU KNOW, NO LONGER ABLE TO BE GIVEN. BUT, THEY GIVE US A LOT OF ADVANCE NOTICE, AND THEY ARE EVEN CHARGING US NOW FOR THE PERMIT, AND THE COSTS -- THOSE ARE IN THE THOUSANDS WHERE BEFORE WE DIDN'T HAVE TO PAY FOR THE PERMIT. SO, YOU KNOW, AND THERE IS --YEAH, THE PERMIT WAS EVEN MORE STREAMLINED. SO, THEY ARE REALLY TRYING TO STANDARDIZE WHAT THEY ARE DOING, SO I AM NOT SURE EXACTLY WHAT IS HAPPENING, FROM UP ABOVE, ACROSS THE DISTRICT. BUT, THAT IS JUST SOMETHING WE ARE SEEING ACROSS THE PARKS SERVICE AND LAW ENFORCEMENT SECTOR THERE. >> PERHAPS THEY WERE AT THE SAME LEAGUE OF CALIFORNIA CITIES CONFERENCE THAT THE MAYOR AND SATINDER WERE AT. >> I THINK WORKING WITH HIM OUT OF OUR BUDGET SUPPORT AND FINANCE OVER THESE LAST FEW WEEKS, EVERYWHERE IS DEALING WITH CHALLENGING ECONOMIC PICTURE, RIGHT? A LOT OF AGENCIES, HOW DO YOU KEEP UP WITH THE COST OF EXPENSE INCREASES? AND UNFORTUNATELY, WE JUST CAN'T GENERATE REVENUE ENOUGH, SOMETIMES, TO COVER THOSE EXPENSES. AND THAT IS NOT JUST A MARTINEZ PROBLEM, THAT IS A PROBLEM ALL OVER, SO I DON'T THINK IT IS A SURPRISE TO SEE THINGS SHIFTING AND IS GETTING CHARGED FOR THOSE FEES. I THINK THEY ARE JUST TRYING TO -- YOU KNOW, WHETHER THEIR OWN STORM, RIGHT? >> OKAY, THANK YOU. >> YEAH, LAUREN, THANK YOU FOR THAT REPORT. SO, CAN YOU TALK A LITTLE BIT MORE ABOUT REALLOCATING THE PROFESSIONAL SERVICES BUDGET? >> YEAH, SURE. SO, WHEN WE ADOPTED THE FISCAL YEAR 23-24 BUDGET BACK A YEAR AGO, ALMOST A YEAR AGO, MIKE AND MYSELF HAD TALKED A LOT ABOUT HOW BECAUSE WE ARE BOLSTERING OUR WORKFORCE AND FILLING POSITIONS, AND HOPING TO RETAIN THOSE POSITIONS, THAT WE ARE REDUCING OUR PROFESSIONAL SERVICE BUDGETS BY A SIGNIFICANT AMOUNT. I WANT TO SAY I THINK WE CUT NEARLY $800 MILLION-$900 MILLION IN WHAT WAS PREVIOUSLY BEING -- HUH? 900,000. OR, THERE YOU GO. LET'S JUST SAY ALMOST $1 MILLION. BUT, YOU KNOW, THAT WAS PREVIOUSLY BEING USED BY -- OR, YOU KNOW, GOING TOWARDS CONSULTANT SERVICES THAT WERE ALMOST TAKING THE PLACES OF PERMANENT POSITIONS. RIGHT? SO, WE MADE SIGNIFICANT GROUND THERE TO INCREASE OUR PROFESSIONAL SERVICES BUDGET. BUT, TO BE HONEST --BECAUSE WE TALKED MORE ABOUT THIS IN TRANSITION, LIKE THE WORKFORCE WAS SIGNIFICANTLY BUILT UP OVER THE LAST YEAR --AND WHEN STAFF, MYSELF AND THE EXECUTIVE TEAMS, PUT THOSE PROFESSIONAL SERVICES, THOSE ADJUSTED PROFESSIONAL SERVICE BUDGETS IN THE BUDGET, WE WERE TAKING OUR BEST GUESS OF, IF WE STAFF UP THE WORKFORCE, WHERE THERE BE A TRANSITIONAL NEED FOR CONSULTING HELP? BECAUSE YOU DON'T JUST HIRE PEOPLE AND THEY ARE READY TO GO THE NEXT DAY. AND THERE ARE SOME CASES, TOO, LIKE SAY WITH THE IMPLEMENTATION OF THE HOUSING PLAN, RIGHT, THERE IS A NEED FOR ADDITIONAL SUPPORT, OUTSIDE SUPPORT. SO, WE MADE OUR BEST GUESS ON WHAT THAT MIGHT BE AT THAT TIME, AND WE WERE HAPPY, SEVEN MONTHS AND, WHEN WE DID OUR EVALUATION, TO FIND THAT THERE ACTUALLY IS A LITTLE GIVE IN ALL THE DEPARTMENTS TO BE ABLE TO ADDRESS THOSE NEEDS. >> RIGHT. SO, THAT IS PART OF YOUR LABOR SAVINGS. IS THAT ONE OF THE POSITIVE THINGS WE HAVE GOTTEN? >> SO, THE PROFESSIONAL SERVICES IS CONSULTING. IT IS LIKE A BUDGET, EVERY DEPARTMENT HAS A PROFESSIONAL SERVICES BUDGET. "PROFESSIONAL SERVICES" IS JUST A FANCY TERM FOR CONSULTANTS. DOES COVER SOME OTHER MISCELLANEOUS EXPENSES. BUT, AS YOU DID MENTION, WE ALSO DID HAVE THE LABOR SAVINGS, AS WELL. THAT IS BECAUSE AFTER THE COUNCIL ADOPTED THE FISCAL YEAR 23-24 BUDGET AND GAVE US AUTHORITY TO GO OUT AND HIRE AND GET THOSE BUDGETED POSITIONS, THAT TAKES TIME BECAUSE WE LIST THE POSITION, INTERVIEW, ON BOARD, SO WE INHERENTLY GET SAVINGS AS A RESULT OF NOT BEING ABLE TO FILL POSITIONS, LIKE MAYBE NOT SO MANY MONTHS INTO THE FISCAL YEAR. >> RIGHT, THAT IS WONDERFUL. SO, OUR EXPENDITURES ARE GOING UP, AND I LIKE WHAT MIKE WAS SAYING, IT IS AN OPTIMISTIC FUTURE. BUT, I AGREE WITH YOU THAT WE REALLY NEED TO TIGHTEN OUR BELT. THAT'S ALL I HAVE. THANK YOU. >> I JUST HAVE A FEW FOLLOW-UP QUESTIONS, AND THEN WE WILL OPEN IT UP TO PUBLIC COMMENT. YOU HAD COMMENTED ON SOME OF THE ITEMS THAT RESULTED IN SOME INCREASED DEFICITS, AS IT WERE. ONE OF THOSE WAS CHARGE FOR SERVICES, AND WE HAVE TALKED ABOUT FEE INCREASES FOR A VARIETY OF DIFFERENT AREAS AT CITY HALL. SO, IS THAT CHARGE FOR SERVICES REVENUE GOING DOWN GOING TO BE ADDRESSED BY RECREATION FEE INCREASES, OTHER FEES THAT WE HAVE INCREASED? OR, IS THIS JUST INDEPENDENT OF THAT? >> DO YOU WANT TO -- I SAW YOU REACHING, I JUST WANT TO MAKE SURE. >> WELL, LIKE LAUREN MENTIONED, SHE IS GOING TO BRING FORTH RECREATION UPDATES, IT IS A MULTIYEAR UPDATE GOING BACK TO 2019 AND EVEN EARLIER ON SOME OF THOSE. THAT WAS THE SAME THING WE DID LAST YEAR, OVER A TWO YEAR PHASED APPROACH. SO, THE SECOND YEAR, AND IT IS ALREADY BUILT IN, WE ADOPTED IT, IT GOES INTO EFFECT JULY 1st. THAT IS WHERE WE GET SOME OF THAT GAP THERE. SOME OF THOSE FEE REVENUES ARE CYCLICAL AND THEY ARE BASED ON THE NUMBER OF LARGE PROJECTS THAT YOU GET. THAT AFFECTS THE VOLUME. THERE IS SOME GOOD NEWS. THE EASIEST EXAMPLE IS BUILDING PERMITS. DOING REALLY WELL THERE. WE AUGMENTED IT WITH THE COUNCIL SUPPORT LAST SPRING TO ADD A SECOND PERMIT TECH POSITION. THAT HAS GREATLY HELPED WITH DEALING WITH THE VOLUME, THE CATCH-UP, AND BEING ABLE TO PROCESS IT MORE EFFICIENTLY, SO THAT IS LOOKING REALLY GOOD. AND AGAIN, LIKE LAUREN MENTIONED, VERY LARGE SUBSIDY IN RECREATION AND WE ARE TRYING TO ADDRESS THAT IN A SMART WAY AND ALSO CATCH-UP FOR MANY YEARS OF NO INCREASES AT ALL. SO, IT SHOULD HELP SOME OF THAT. SOME OF THE OTHER AREAS, TOO, WE ARE GOING TO GET THE BENEFIT OF SEEING ANOTHER QUARTER'S WORTH OF DATA AND THAT IS GOING TO HELP US SHARPEN THOSE PENCILS WITH THE NEW FINANCE DIRECTOR AS WE LOOK AHEAD TO THE NEXT YEAR. SOME OF THE THINGS LIKE SALES TAX, MEASURE X HAS DONE REALLY WELL. MS. HER EX-HUSBAND BENEFITED PURCHASES THAT ARE MADE OUTSIDE THE CITY THAT ARE BROUGHT IN, TO MARTINEZ, BY CARS, APPLIANCES, TICKET ITEMS LIKE THAT, WE GET THE SALES TAX LIKE THAT. REGULAR SALES TAX, NOT SO WELL. THAT IS DOWN BELOW EVEN WITH THE LOWERED PROJECTIONS WERE. BUT, HDL IS TELLING US THERE IS SOME GOOD NEWS, THEY THINK THE HORIZON FOR NEXT YEAR, IS GOOD AND WE WILL GET DATA FROM ANOTHER ORDER BEFORE WE BRING FORTH PROJECTIONS FOR MIDCYCLE, SO WE WILL JUST SEE. A LOT OF MOVEMENT IN CANNABIS IS DOWN AND WE KNEW THAT EARLY ON, SO WE HAVE TO SEE WHERE THE TREND IS AFTER ANOTHER QUARTER'S WORTH OF DATA. WE HAVE TO WAIT UNTIL APRIL BECAUSE THEY PAY QUARTERLY. SO, THERE IS SO MUCH TO WORK. REALLY STRONG PROPERTY TAX HAS LOOKED GOOD, DOCUMENT TRANSFER TAX, NOT SO GREAT, IT IS DRIVEN BY VOLUME AND SOME OF THESE PROPERTIES HAVEN'T TURNED IT OVER, EVER, YOU KNOW? THERE IS A POTENTIAL THERE FOR A NICE USED IF THEY DO, BUT IF THEY DON'T, THEY ARE HELD AT THE PROP 13 LEVEL. THAT IS REALLY WAY BELOW WHAT THE MARKET LEVEL IS, AND THIS PROPERTY TAX BACK TO US. SO, WE WILL SEE. BUT, YEAH, THE CHARGES FOR SERVICES, WE DO HAVE SOME POTENTIAL TO IMPROVE THAT IN THE NEAR TERM, FOR SURE. >> OKAY. THE RENOVATIONS REGARDING CABLING, I JUST WANTED TO ACKNOWLEDGE THAT THERE HAVE BEEN SOME REALLY GREAT IMPROVEMENTS MADE TO THE WORKING ARRANGEMENTS UPSTAIRS, AND I KNOW MOST MEMBERS OF THE PUBLIC DON'T GET AN OPPORTUNITY TO WALK INTO WHERE THE EMPLOYEES ARE WORKING, BUT WE HAVE MADE SOME REALLY GREAT IMPROVEMENTS, YOU KNOW, SOME HUGE, ENTIRE FLOOR REMODELS TO MAKE IT MORE ATTRACTIVE FOR EMPLOYEES. THE CABLING WILL BE HELPING WITH THE REMODEL DOWNSTAIRS. I WANT TO ACKNOWLEDGE, EVEN THOUGH I SAID THIS LAST TIME, THAT WE HAVE WI-FI IN CITY HALL NOW, WHICH IS ALSO A BIG DEAL. I AM JUST GLAD TO SEE THAT WRAPPING UP. I KNOW THERE HAVE BEEN SOME COST RUNS THERE. ONE THING I DID WANT TO ASK, IS IF THE BATHROOMS ARE INCLUDED? THIS IS KIND OF AN OFF-THE-CUFF QUESTION, BUT OUR BATHROOMS INCLUDED IN THE RENOVATIONS YOU ARE PROPOSING AT ALL FOR CITY HALL? >> NO. NO BATHROOMS. >> NO? OKAY, JUST WANTED TO MAKE SURE. AND MY OTHER QUESTION, SO, WE HAVE BEEN TALKING ABOUT ARPA FUNDS FOR A WHILE AND I WAS VERY CONCERNED THAT I WOULD NICKEL AND DIME OURSELVES BEFORE WE HAD AN OPPORTUNITY TO REALLY FIND ANYTHING MAJOR. AND I CAME INTO TONIGHT'S MEETING, NOT EXCITED ABOUT APPROVING ANOTHER ARPA TRANSFERRED TO THE TUNE OF $55,000, WHICH IS VERY MUCH OUT OF THE $9 MILLION WE HAVE HAD IN ARPA FUNDING THAT WE HAVE VERY MUCH FELT LIKE AN NICKEL AND DIMING KIND OF THING. I AM MORE INTERESTED IN TANGIBLE IMPROVEMENTS TO THE QUALITY OF LIFE ACROSS THE CITY THAT EVERYONE CAN SEE AND EXPERIENCE. BUT THEN, WHEN I LOOKED THROUGH AND REALIZED WHAT IT WAS MADE UP OF, THAT YOU ARE ASKING US TO MAKE ARPA TRANSFERS INTO QUALITY-OF-LIFE EXPENSES, AND SO I AM A LITTLE LESS --I WAS HAPPIER TO SEE THAT, OR MORE SATISFIED, AND KIND OF FRUSTRATED WHEN I READ THROUGH IT, BUT I JUST WANTED TO ACKNOWLEDGE THAT MY INTENTION HAS NOT BEEN TO GO INTO OUR ARPA DISCUSSION WITH VERY, VERY LITTLE MONEY LEFT BECAUSE I KNOW THERE ARE A COUPLE OF PROJECTS WE WOULD LIKE TO SEE FUNDED BY THE END OF THE YEAR. BUT, FOR THE TIME BEING, I AM OKAY WITH THIS. I DID WANT TO A COLLEGE THAT A PORTION OF THAT WAS FOR FIREWORKS. AND I KNOW WE HAVE TALKED ABOUT SPONSORSHIP OPPORTUNITIES. SO, IS THE FIREWORKS WE ARE TALKING ABOUT HERE POTENTIALLY SPONSORSHIP -ABLE AND WE COULD GO BACK TO THE ARPA FUNDS? >> THANK YOU FOR MENTIONING THAT. WE WILL MAKE IT A GREAT EFFORT TO SEEK SPONSORSHIPS FOR FIREWORKS, AND I AM LOOKING AT ALL OF YOU, AND WE WILL GIVE YOU THE TOOLS TO GET OUT THERE, AND HELP US. AGAIN, THAT IS WHY WE WANT TO WORK EXPEDITIOUSLY ON THIS SPONSORSHIP PACKAGE. THE SPONSORSHIP PACKAGE WILL ALSO INCLUDE THE OPPORTUNITY TO SEEK OUTSIDE SUPPORT ON THIS CULTURAL EVENT GRANT FUND. SO, TO ANSWER YOUR QUESTION, IN THEORY, IF WE ARE ABLE TO GET SPONSORSHIPS TO COVER THIS YEAR'S COSTS, ABSOLUTELY. WE WOULD NEED TO RELY HEAVILY -- WELL, YOU KNOW, FULLY -- ON THE ARPA FUND ALLOCATION. >> BUT, WHEN YOU ANTICIPATING REPORTING BACK OUT ON THE SPONSORSHIP PACKAGE PLAN? >> SO, YOU MEAN, JUST THE PROPOSAL OF THE PACKAGE ITSELF? >> YEAH. >> LET'S SEE -- AFTER THE RECREATION FEE UPDATE. >> OKAY. >> SO, I THINK WE WERE THINKING EARLY APRIL, BUT THAT COULD SHIFT VERY QUICKLY. STAFF IS ALREADY WORKING ON IT. IF WE COULD GET IT UP TO THE COUNCIL SOONER, WE WILL DO THAT. >> OKAY. AND THIS IS THE QUESTION, THIS IS MORE FOR EVERYBODY WHO IS LISTENING. WE HAVE MADE VARIOUS COMMENTS ABOUT THAT MAY SOUND LIKE A CLOAKED REFERENCE TO THE FINANCE DIRECTOR AS IF WE KNOW THE PERSON WHO HAS GOTTEN HIRED. THE REASON WE ARE MAKING IT SOUND SECRETIVE IS BECAUSE IT HAS NOT BEEN MADE PUBLIC, AND WE HAVE NOT BEEN NOTIFIED WHO THIS PERSON IS. SO, WE KNOW THAT THE CITY STAFF, CITY MANAGER HAVE BEEN GOING THROUGH INTERVIEWS TO FIND THE RIGHT CANDIDATE, BUT WE DON'T KNOW WHO IT IS, SO I JUST WANTED TO MAKE SURE THAT WAS CLEAR, THAT WE ARE NOT KEEPING IT FROM YOU, WE ARE JUST ACKNOWLEDGING THAT WE ALSO DON'T KNOW WHO THEY HAVE DECIDED TO MOVE FORWARD. SO, I THINK THAT IS IT. DID YOU HAVE ANY OTHER COMMENTS? >> ONE MORE REQUEST WHEN WE COME BACK ON THIS ITEM FOR THE NEW FINANCE DIRECTOR TO MAYBE ONE OF THE OTHER THINGS I HAVE LEARNED FROM MY EXPERIENCE ASIDE FROM THE ITEMS WE HAVE MENTIONED BEFORE, IT IS ALSO, YOU KNOW, THE LOVELY WORLD OF OPEB, WHICH I MENTIONED BEFORE, AND OTHER INSURANCE MATTERS. AND HOW BRUTALLY THEY CAN AFFECT A BUDGET . THOSE ARE X FACTORS THAT JUST SUDDENLY WE HAVE NO CONTROL OF AND IT IS LIKE GETTING A LETTER FROM THE IRS. YOU KNOW IT IS NOT GOING TO BE GOOD, YOU KNOW IT IS NOT A REFUND CHECK. YOU OPEN IT UP TO FIND OUT WHAT THE AMOUNT IS. SOMETIMES, THAT SIBLING CAN BE -- I HAVE SEEN IT IN ONE FISCAL YEAR FROM $500,000-$2 MILLION. YOU KNOW, IT CAN BLOW YOUR BUDGET. SO, I THINK THE NEW FINANCE DIRECTOR CAN MAYBE LOOK AT HOW --YOU KNOW, HOW DEVASTATING THOSE ITEMS CAN BE, AND TO WHAT EXTENT THE FUTURE COUNCILS CAN CONTROL THEM, BE AWARE OF THEM, AND WHERE THEY SIT WITH REGARDS TO PENSIONS, AND WITH REGARDS TO YOUR EX MOD, AND WORKERS COMPENSATION. TRY TO, YOU KNOW, KEEP AN EYE ON ON WHAT THAT CHUNK DOES TO IT, BECAUSE IT IS JUST THE WRECKING BALL OF THE REST OF THE FINE TUNE. I NOTICED WE ARE $186 DOWN ON POOL SUNDRIES. BUDGET OF $500 AND WE HAVE ONLY SPENT $300. YOU KNOW? SO, LIKE I SAID EARLIER, TRYING TO GET ALL OF THESE BY NOON. THAT IS BLOWN OUT OF THE WATER BY BAD NEWS, BUT THERE IS SO MUCH GOOD NEWS. >> AND SOME GOOD THINGS ARE THINGS WE DO HAVE CONTROL OVER. WE HAVE PLANS TO KEEP THE WORKERS COMPENSATION DOWN. BUT, WE HAVE NO CONTROL WHAT WE DO IN OTHER JURISDICTIONS, AND THE FINANCE LOCATIONS, WE HAVE TO TAKE SHARE OF. >> AND THEN, YOU EXPAND THAT SCOPE, SO THE COUNCIL HAS AN IDEA, A BAD YEAR OF YOUR WORKERS COMPENSATION -- WHEN DOES THAT BAD HERE FALL OFF IN YOUR PREMIUMS GO BACK DOWN? SO, WE ARE GOING TO GET A BREAK, HOPEFULLY KNOCK ON WOOD IN TWO YEARS. SO, THOSE ARE THE THINGS THAT HELP, YOU KNOW? WE ARE CALLED ON TO UNDERSTAND IT IN A ONE HOUR, TWO HOUR SESSION AND THOSE THINGS I FOUND HELPFUL AS TO, HOW DID WE GET HERE? I WILL LASTLY SAY I LEARNED THIS THROUGH A DEPRESSION MENTALITY, BASICALLY WHEN I CAME ON THE COUNCIL, WE HAD $1500 RESERVE. FIVE DOLLARS A DAY, RESERVES. SO, WE BUILT IT BACK UP. BUT, IT TOOK EDUCATION OF COUNSEL OVER THE YEARS, TO WHERE YOU CAN FIND THAT EXTRA $250,000, THAT EXTRA $500,000, WHERE YOU KNOW, WHY DID IT GO DOWN HERE, YOU KNOW, WANTED TO GO UP THERE. >> THANKS. I AM GOING TO OPEN IT UP TO PUBLIC COMMENT. IS THERE ANYONE IN THE COUNCIL CHAMBERS THIS EVENING THAT WOULD LIKE TO SPEAK ON OUR MIDYEAR ADJUSTMENTS? ANYONE IN THE VIRTUAL AUDIENCE? >> PLEASE USE THE RAISE HAND FEATURE IF YOU WOULD LIKE TO MAKE A COMMENT ON ITEM NUMBER 12. I HAVE NO HANDS. >> ALL RIGHT, OKAY. ANYONE HAVE ANY FINAL COMMENTS FOR STAFF, OR --A MOTION, PLEASE? >> WE ARE LOOKING TO ADOPT A RESOLUTION. >> I WOULD LIKE TO MAKE A MOTION THAT WE ADOPT A RESOLUTION APPROVING AMENDMENTS TO THE FISCAL YEAR 2023-2024 FISCAL GENERAL FUND, WATERFRONT, AND MANAGEMENT INFORMATION THE FUND OPERATING BUDGETS, AUTHORIZING EXPENDITURES OF THE $55,210 FROM THE AMERICAN RESCUE PLAN ACT AS OUTLINED IN THE REPORT, AND AUTHORIZING STAFF TO MAKE THE NECESSARY ADJUSTMENTS. >> SECOND. PLEASE VOTE. >> MOTION PASSES. ALL AYES. >> LAUREN, THANK YOU FOR THE REPORT. MOVING FORWARD, PUBLIC HEARING AND RESOLUTION ADOPTING THE WATERFRONT MARINA TRUST LAND USE PLAN. WELCOME BACK. >> CAT IS GOING TO PULL UP THE PRESENTATION. GOOD EVENING, MAYOR ZORN, CITY COUNCILMEMBERS, AND MARTINEZ COMMUNITY. MY NAME IS DAN DOBSON, WITH FWA GROUP. WE HAD A CONSULTANT WORKING ON THE WATERFRONT LAND USE PLAN. JOINTS NIGHT BY MARIANA RIKER, MY COLLEAGUE AT FWA AND JOSH BRENNAN, ATTENDING VIRTUALLY. OVER THE LAST 18 MONTHS, MAYBE A LITTLE LONGER, WE HAVE BEEN WORKING WITH YOU AND THE COMMUNITY ON THE WATERFRONT TRUST PLAN AND WE BRING IT TO YOU TONIGHT FOR ADOPTION. HOPEFULLY, THE PLAN IS VERY FAMILIAR, AND IS SOMETHING THAT EVERYONE IS EXCITED TO WORK TOWARD ACHIEVING AND SEEING IT RELIES ON SITE. SINCE WE LAST SPOKE, THERE HAVE BEEN A COUPLE OF DATES TO IT. WE HAVE UPDATED THE SEAWALL APPROACH TO REFLECT ONGOING ENGINEERING DESIGN WORK THAT HAS BEEN CONDUCTED. ANCHOR QA, I BELIEVE THEY RECENTLY GAVE AN UPDATE TO THE MARINA SUBCOMMITTEE ON THAT. SO, WE ARE JUST REFLECTING THAT WORK HERE IN THE WATERFRONT TELE. WORKING THROUGH SHIFTING THROUGH THE SMALL CRAFT ZONE, SPECIFICALLY DOCKSIDE RENTALS AND STORAGE TO THE WESTERN SIDE BY THE FISHING PIER. WHILE MAINTAINING A PUBLIC LAUNCH, TO THE EAST OF THE MARINA OUTSIDE THE MARINA WALL. WE HAVE ALSO CONSULTED WITH LOCAL TRIBES TO INCLUDE A LAND ACKNOWLEDGMENT AT THE FRONT OF THE DOCUMENT AND EXPRESS INTEREST IN FURTHER ENGAGEMENT AS IMPROVEMENTS AT THE WATERFRONT PROGRESS. AND MOST IMPORTANTLY, WE HAVE COORDINATED WITH STATE LANDS COMMISSION. LAST TIME WE WERE HERE, WE GOT DIRECTION TO COORDINATE WITH THEM ON THE DRAFT. AND SPECIFICALLY, TO GRADUATE OUR TIERED LEASE STRUCTURES FOR COMMERCIAL USES, AND CONSIDERATIONS FOR LONG-STANDING, NONPROFIT ORGANIZATIONS AT THE WATERFRONT MARINA. SO, THOSE ARE KIND OF THE MAJOR UPDATES SINCE WE LAST SPOKE. SPECIFICALLY, THE LEAST CONSIDERATIONS, I THOUGHT THAT WAS USED HIGHLIGHTING. SO, YOU KNOW, ALIGNING, PHASED DEVELOPMENT, WE KNOW THIS IS GOING TO BE A PHASE APPROACH TO ALLOW FOR AND CONFIRM WITH THEM, REALLY, THAT GRADUATED YEAR STRUCTURE IS APPROPRIATE. WE HAVE ALSO TALKED WITH THEM SPECIFICALLY ABOUT THE NONPROFIT USES, MARTINEZ C SCOUTS, I WANTED TO HIGHLIGHT THAT. THESE ARE GUIDELINES, GUARDRAILS FOR ONGOING DISCUSSIONS, BUT WE ARE RECOMMENDING IN HERE A MINIMUM OF ONE DOLLAR, ANNUAL RENT FOR THE SEA SCOUTS AND THERE WERE THE CAUSE, AS WELL AS HAVING A WORTHY BENEFIT. AND THEN FOR THE MARTINEZ YACHT CLUB. AN 80% DISCOUNT ON THE FERRY ANNUAL BASE RENT TO START, FOR A TERM OF FIVE YEARS WITH TWO ADDITIONAL FIVE-YEAR EXTENSIONS, FOR A MAXIMUM OF 15 YEARS. WITH THE PERCENTAGE RENEGOTIATED BASED ON IMPROVEMENTS TO THE MARINA ITSELF. SO, AS THE MARINA IMPROVES, THE RENT WOULD INCREASE. THIS REALLY PROVIDES KIND OF AN OFF OR ON-RAMP TO A FAIR, ANNUAL BASE FOR THE YACHT CLUB. WITH THAT DISCOUNT BEING BASED ON AGAIN, THE COMMUNITY BENEFIT THEY PROVIDE, THE EVENTS, THE ACTIVATION AT THE WATERFRONT, AS WELL AS THE IMPROVEMENTS TO THE STRUCTURE AND THE AREA AROUND THE YACHT CLUB ITSELF. AND SO, STATE LANDS ASKED SPECIFICALLY THAT WE CALL IT OUT IN THE DOCUMENT. SO, NEXT STEPS. THE LIST HAS RUN SHORTER OVER MY TIME WITH YOU, THANKFULLY. THINGS ARE GOING THE RIGHT WAY. SO, NEXT STEPS IS FORWARDING THIS TO THE STATE LANDS COMMISSION FOR THEIR CONSIDERATION AND APPROVAL. IT IS LOOKING LIKE THAT WOULD HAPPEN IF ADOPTED TONIGHT AT THEIR JUNE MEETING. AND THEN, THE CITY WORKING TOWARDS IMPLEMENTING THE PLAN ITSELF. SO TONIGHT, WE ARE HERE ASKING FOR YOU TO ADOPT A RESOLUTION APPROVING THE WATERFRONT MARINA TRUST LAND USE PLAN AND FOR THE CONSIDERATION AND APPROVAL. I HOPE THIS IS BEEN MY BRIEFEST PRESENTATION TO YOU. >> IT REALLY HAS. [ LAUGHTER ] WELL, I DON'T HAVE ANY MAJOR --I WOULD LIKE YOU TO MOVE SOMETHING IN THE PLAN --NO, I'M JUST KIDDING. [ LAUGHTER ] I JUST WANTED TO THANK YOU FOR ALL OF THE TIME THAT YOU SPENT, AND WE HAVE SEEN THIS, YOU KNOW, VARIOUS ITERATIONS OF THIS PLAN, LIKE YOU SAID, OVER THE LAST 18 MONTHS AND IT HAS SLOWLY STARTED TO TAKE SHAPE. I FEEL LIKE WHEN WE GOT THIS PRESENTATION MAYBE SIX MONTHS AGO WHEN IT WAS THAT FIRST AREA, WE WERE SEEING THESE FIRST RENDERINGS, THIS FIRST PHOTO IMAGERY OF WHAT IT MIGHT LOOK LIKE SPECIFIC TO MARTINEZ WE ALL WENT, YEAH, THEY GOT IT. BUT, SINCE THEN, YOU HAVE BEEN MAKING TWEAKS AND IT JUST KEEPS GETTING BETTER AND BETTER. SO, I JUST WANT TO THANK YOU AND ACKNOWLEDGE THE AMOUNT OF TIME YOU SPENT WITH VARIOUS MEMBERS, STAKEHOLDERS IN OUR COMMUNITY, AND YOU'VE LISTENED AND INCORPORATED THE THINGS THAT THEY SAID, SO I APPRECIATE ALL OF THE TWEAKS WE HAVE SEEN, AND I AM SURE THAT THE CALIFORNIA STATE LANDS DOES, AS WELL. DID THEY --DID THEY GIVE AN INDICATION THEY WOULD LIKELY APPROVE IT, BECAUSE WE HAVE ADDRESSED ALL OF THE COMMENTS, BUT THEY HAVE NOT FORMALLY APPROVED IT, BUT BECAUSE WE HAVE NOT FORMALLY SUBMITTED IT, IS THAT CORRECT? >> THAT'S CORRECT. THIS IS THE FIRST STEP, AND THEN THEY WILL TAKE IT TO THE BOARD. WE ARE NOT SURE THE EXACT TIMEFRAME, BUT THEY WILL KEEP US POSTED ON THAT. THAT WAS IMPORTANT TO WORK WITH THEM, MAKE SURE WE HIT ALL THE CHECK MARKS THAT WE NEEDED TO WITH THEM, AND IT WAS GREAT BECAUSE THE LAST REVIEW THAT THEY GAVE US, THEY JUST HAD THE MOST MODEST OF ADJUSTMENTS, AND THEY REALLY LIKED WHAT WE HAVE DONE, AND THEY HAVE BEEN A GOOD PARTNER TO WORK WITH. SO, I WANT TO GIVE THEM -- I WANT TO COMMEND THEM FOR THE PARTNERSHIP AND THE WORK THEY HAVE DONE ALONGSIDE US TO HELP GET THIS GOING. >> YES, EXCELLENT. OKAY. THERE IS ONLY A QUORUM LEFT. I'M NOT SURE. BUT, IF YOU HAVE QUESTIONS, JAY, WE WILL START WITH YOU? >> I DON'T HAVE ANY QUESTIONS, I JUST HAVE A COMMENT. I REALLY APPRECIATE ALL YOUR HARD WORK. I'M REALLY EXCITED ABOUT THIS PLAN, AND I REALLY APPRECIATE YOUR BEING CONSCIENTIOUS AND CONSIDERATE ABOUT THE SEA SCOUTS. I THINK THEY ARE A HUGE PART OF OUR COMMUNITY. SO, I'M NOT REALLY WORRIED ABOUT THE DOLLAR A YEAR RENT, I'M GOING TO BE OKAY. >> COUNCILMEMBER HOWARD, I WANT TO MENTION ON THAT, THAT WAS ONE OF THE HURDLES WE HAD TO CLEAR WITH THE STATE LANDS COMMISSION. THE FINANCIAL COMPONENTS. AND WE WORKED CLOSELY WITH THE NOT PROFITS OR NOT FOR PROFITS DOWN AT THE MARINA AND HAD TO BUILD A COMPELLING CASE, SO THEY GAVE US A LOT OF INFORMATION, AND A LOT OF BACK AND FORTH BECAUSE THEY HAVE A CERTAIN STANDARD THAT THEY HAVE TO CLEAR FOR ALLOW FOR SUCH DISCOUNTS. ULTIMATELY, WE GOT THERE, WHICH WAS REALLY EXCITING. >> WOW. THAT IS GREAT. I KNOW YOU ARE OUT THERE FISHING FOR OUR SEA SCOUTS, AND I REALLY APPRECIATE THAT FOR SOME 100 ODD YEARS. THAT'S REALLY GREAT. WASN'T YOUR DAD INVOLVED WITH SEA SCOUTS? SCOTT? YEAH, RIGHT, LIKE THE GRANDFATHER OF OUR SEA SCOUTS AS WE KNOW THEM, SO, THANK YOU. >> YEAH, WE ALSO HAVE AN ITEM IN HERE FOR THE OUTRIGGER CANOE CLUB, AS WELL. SO, WE'VE REALLY ACKNOWLEDGED SO MANY, AND WE ARE EXCITED TO GET GOING WITH THAT. >> I JUST WANT TO CONGRATULATE YOU AND ALL THE TEAM, ALL THE WORK YOU HAVE PUT ON THE PROJECT. IT HAS BEEN A LONG JOURNEY. I REMEMBER ATTENDING THE FIRST PUBLIC WORKSHOP. IT SEEMS LIKE A LONG TIME AGO. SLOWLY BUT SURELY, IT'S COMING TOGETHER, AND THIS IS THE VISION. THIS IS THE VISION, NOT JUST FROM THE COUNCIL, BUT THIS IS FROM THE PUBLIC, ALL THE ENGAGEMENT YOU'VE HAD WITH THE PUBLIC, ALL THE COMMENTS YOU'VE RECEIVED, AND THEY WERE ALL KIND OF CULMINATED INTO THIS PLAN. AND IF YOU DON'T HAVE A PLAN, YOU DON'T HAVE A VISION, NOTHING IS EVER GOING TO HAPPEN, SO I AM REALLY HOPEFUL THAT THIS WILL BE BLESSED AND WE CAN CONTINUE TO MOVE FORWARD WITH THE PLAN, BECAUSE WITHOUT A PLAN, YOU DON'T GET TO YOUR DESTINATION. IF SO, THANK YOU FOR ANYONE AND ANYONE WHO HAS CONTRIBUTED TO THIS. >> THANK YOU, MADAM MAYOR. SORRY, I HAD TO STEP OUT FOR A MINUTE THERE. THE PLAN HAS BEEN VERY WELL COLLATED BY THE GROUP. WE APPRECIATE ALL OF THE EFFORT YOU HAVE DONE. AND I MAY HAVE MISSED THIS, YOU MAY HAVE SAID IT --HOW LIKELY IS IT THAT THEY WILL MAKE TWEAKS OR RECOMMENDATIONS? >> WE HAVE BEEN WORKING WITH THEM CLOSELY THROUGHOUT THIS PROCESS. THEY HAD A COUPLE MINOR TEXT EDITS. THE LAST TIME WE SPOKE --YOU KNOW, OBVIOUSLY, ANYTHING CAN HAPPEN, BUT WE ARE NOT ANTICIPATING ANYTHING SUBSTANTIAL WOULD COME AT THIS POINT. FULL REVIEW. THE DOCUMENT YOU HAVE IN FRONT OF YOU WILL BE APPROVED ONCE IT GOES TO THE COMMISSION. >> THANK YOU, DAD >> ALL RIGHT. I AM GOING TO OPEN THIS UP TO COMMENT. IF THERE'S ANYONE WHO WOULD LIKE TO SPEAK ON THIS ITEM -- I DON'T HAVE ANY CARDS. ANYONE WANT TO SPEAK? YEAH, GO AHEAD, SIR. >> HI, I'M DARRELL. THANK YOU FOR THE REPORT. ONE THING THAT HAS, I THINK, COME UP IN SOME OF THE PLANNING SESSIONS BEFORE, I REALLY JUST WANTED TO HEAR HOW MUCH THOUGHT WE PUT INTO THE RENTAL COMPONENTS WHEN IT COMES TO SMALL WATERCRAFT. THIS IS SOMETHING THAT CONCERNS ME GREATLY AS SOMEONE WHO IS AN AVID KAYAKER, AND WHO HAS THE EXPERIENCE TO KNOW WHAT THE CURRENTS ARE LIKE. I GET VERY, VERY CONCERNED ABOUT THE IDEA OF PROMOTING TO THE UNINITIATED AND NOVICES, THE IDEA OF KAYAKING, WHATEVER SORT OF SMALL BOARD RAFTING YOU ARE ENVISIONING, STARTING OUT IN THE CARCASS STRAIGHT. IT IS NOT THE IDEAL, PLACE, MOST TIMES. SO, I AM WONDERING, IF WE DO DECIDE TO MOVE AHEAD WITH THAT, HAVE A PLAN FOR WHAT WE WILL DO IN TERMS OF RESCUE, AND MAKING SURE WE ARE STUFFED WITH, AND HAVE THE EQUIPMENT FOR BOATS THAT GO OUT AND RESCUE THE INEVITABLE PEOPLE THAT DIDN'T KNOW WHAT THEY WERE GETTING THEMSELVES INTO? THAT COULD BE A HIDDEN COST THAT, I HAVEN'T SEEN THAT FOR THE CALENDAR YEAR. SO, I DON'T KNOW IF THERE ARE ANY COMMENTS ON THAT. >> WE WILL DO WHAT WE DID DURING THE WORKSHOP. DAN, IF YOU DON'T MIND JOTTING DOWN SOME OF THE QUESTIONS WE CAN SEE IF WE CAN RESPOND TO ALL OF THEM AT THE END. I WILL TAKE NOTES, TOO. ANYONE ELSE HAVE ANY COMMENTS? NONE? OKAY, HOW ABOUT THE VIRTUAL AUDIENCE? >> THIS IS PUBLIC COMMENT FOR ITEM NUMBER 13. IF YOU WOULD LIKE TO MAKE A COMMENT, PLEASE USE THE RAISE HAND FEATURE NOW. LOOKS LIKE I HAVE A TOTAL OF ONE HAND. TREVOR, I WILL ASK YOU TO UNMUTE. >> YES, HELLO. I WANTED TO MAKE TWO QUICK COMMENTS. FIRST, I WILL JUST SAY, I'M GLAD TO SEE THIS COMING THROUGH FOR FINAL APPROVAL. SECOND, I WILL REITERATE WHAT WAS JUST MENTIONED. I ALSO HAVE SOME CONCERNS ABOUT THE MOVEMENT OF THE SMALL CRAFT LOADING DOCKS OUTSIDE OF THE BREAKWATER, AND PARTICULARLY THE LOCATION OF THE NEW A SMALL CRAFT DOCK SO CLOSE TO THE PROPOSED VERY, HAVING DONE MY FAIR SHARE OF KAYAKING AROUND THE FERRY, NEAR SAUSALITO, I CAN TELL YOU THEY ARE VERY FAST-MOVING BOATS AND AGAIN, PARTICULARLY HAVING RENTALS THERE RIGHT NEXT TO LIKELY ONE OF THE LARGEST AND FASTEST MOVING BOATS IN THE MARINA, AND PRESENT SOME DANGERS. AND THEN, FINALLY, YOU HAVE HEARD THIS FROM THE MANY, MANY TIMES, SO I WILL KEEP IT SHORT AND BRIEF BUT I WANT TO SAY I AM DISAPPOINTED YET AGAIN TO SEE FIGURES 39 AND 40 ON PAGE 108 STILL SHOW ONLY A LAST THREE BIKEWAY THERE WITH THE BIKES HAVING TO SHARE A LANE WITH VEHICLES AND RIDING DIRECTLY IN THE DOOR ZONE OF PARKED CARS. IT SEEMS PARTICULARLY AT THIS PLANNING STAGE THAT WE COULD DO MUCH, MUCH BETTER, AND A QUICK MODIFICATION TO A CROSS SECTION IS ALL THAT IS NEEDED TO SHOW THAT BECOME A PARKING PROTECTED BY GLENN, OR ANY OTHER NUMBER OF PREFERRED BIKE INFRASTRUCTURE SOLUTIONS. THANK YOU. >> THANK YOU. >> I HAVE NO FURTHER HANDS. >> GREAT, THANK YOU. DID YOU WANT TO RESPOND TO THOSE TWO COMMENTS? >> YEAH, SO, SAFETY, AS IT IS RELATED TO THE SMALL CRAFT RENTALS, CREATED A LOT OF DISCUSSIONS ON THAT TOPIC, AND IN ALL OF THEM, WE HAVE TRIED THE CRAFT TO LAUNCH IN THE WATERS, NOT IN THE STRONG CURRENTS, NOT INTO THE CARQUINEZ STRAIT, NO YOU WILL HAVE RIDERS OF DIFFERENT ABILITIES. WE HAVE ANTICIPATED A NEED FOR ADDITIONAL SERVICE AT THE WATERFRONT. NOT SPECIFICALLY WIRES IN ADDITION TO EMERGENCY SCENARIOS, JUST MORE USERS THERE. YOU ARE GOING TO HAVE MORE POLICE PRESENCE, MORE CITY STAFF THERE TO MAINTAIN THOSE THINGS. AS IT RELATES TO THE PROXIMITY TO THE FERRY, BASED ON THE INFORMATION WE HAVE, WE HAVE KEPT TRYING TO KEEP THE DISTANCE BETWEEN THE LAUNCH AND THE FERRY, WHERE IT WOULD BE TURNING, AND I THINK IT IS IMPORTANT TO NOTE -- ESPECIALLY BASED ON THE SPECIAL SESSION EARLIER TODAY --THE FERRY IS REALLY A LONG-TERM VISION, AND WHAT FORM IT ULTIMATELY TAKES WHERE IT COMES IN, THE BOAT SIZE, THERE IS STILL A LOT TO BE WORKED THROUGH THERE. ESPECIALLY WITH DESIGN AND ENGINEERING. AS IT RELATES TO THE BIKE, WE HAVE KEPT THE CLASS THREE ON THE STREETS BECAUSE WE DO HAVE THE GENEROUS TRAILS IMMEDIATELY ADJACENT TO THAT. SO, THAT WILL CUT THE LARGER CLASS OF TRAILS. SO, WHAT WE FOUND IS THERE ARE RECREATIONAL USERS THAT PREFER BEING OFF OF THE STREET, ON THE TRAILS, AND YOU HAVE THE --I WILL CALL THEM COMMUTER USERS -- THE ONES WHO ARE VERY COMFORTABLE ON THE STREET, THEY ACTUALLY PREFER THE STREET. SO, FOR THE SPEEDS THAT CARS WOULD BE GOING, THE BIKE, FROM ALL OF THE STUDIES A