Folsom City Council Regular Meeting

>>> good evening, everyone. We'll go ahead and reconvene the special meeting of the folsom city council. Any final action to report out of closed session, Mr. City attorney? >> nothing. >>> with that, we will adjourn the special meeting and &%pXa8y}begin would everyone please rise and join me in the pledge of allegiance. >> I pledge allegiance to the flag of the united states of america, and to the republic with liberty and justice for all. . >>> okay. So to start out with, any agenda updates, Mr. City attorney? >> we do, Mr. Mayor. We have three agenda updates tonight. Staff has l$Hnrequested that item 7 c be pulled off CALENb722y return at some point perhaps. It will be off calendar, not to dfa be heard tonight. Item 8 a, there is a revised staff report with two changes to resolution, and then item u\:il7 d, there are `%qd|several revisions to that, scott's report, addition, and then a late- breaking resolution where the bid protest was withdrawn, but that is all of them. >> okay. Thank you. >> are you pulling that item out of consent, or no? >> should be pulled out from consent -- (Indiscernible). >> 7 b. Okay. [Indiscernible] >> okay. . >>> all right. So that moves us to our scheduled presentations this evening. The first item 5a is transportation sales tax measure update by sacramento transportation authority. Good morning, or good evening. >> good afternoon, council members. This scheduled presentation is going to be presented to you by brian williams, and he assures me that he was in the second helicopter, not the first one. He'll be presenting the sta, sacramento go program this evening. Brian has worked with us very well for u3many, many years, for 19 years with sta. of course they administer the half-cent transportation sales tax. He has helped us in having bridges built and freeway work and now with the southeast capital connector, he's been a real partner. measure a was overwhelmingly approved in 1988, renewed in 1994, generates $100 million annually for use in transportation projects all throughout sacramento county. It made possible a wide range of critically important transportation improvements and continues to do so. This evening, brian is going to give us an update on the sacramento go campaign, which is intended to raise awareness of the program. A lot of people drive these roadways, these bridges, and they don't realize how much local money went in to make them happen. Lot of times, in order to get the big money, we need the matching money and the local money to go out and really grab a large project money and be able to execute. So this evening, brian will be presenting you with this update and be raising our awareness about what they are doing and what they plan for the future. With that, brian? >> well, thank you very much. that takes care of page 1 1/2 for me. Thank you very much, mayor, members of the council. I am brian williams, secretary of the transportation authority. The transportation authority is a small group. We receive policy direction from a 16-member governing board. As dave mentioned, we're the agency that administers major a, the voter-approved county- wide half-cent transportation sales tax county-wide. 16 positions, one is reserved for the city of folsom. That person who represents you is kerri howell. I want to talk to you tonight, a little bit about the measure a sales tax program and the future of transportation funding in the sacramento area. As dave mentioned, measure a generates a little over $100 million a year for expenditure on local street improvements and maintenance on the highway car-pool lanes and the interchange improvements and on public transit expansion and operations. Approximately 80% of the money we receive every year is ear marked for maintenance and operation of existing local transportation infrastructure. The remaining 20% is for capital projects. Sta has developed working partnerships with each of the local public works departments in the county, _<4~with the regional transit and with para transit, inc., to facilitate the expenditure -- excuse me, expenditure of sales tax revenues sx according to the formula set forth in measure a qrsi,%9ance. We -- in addition to working with the city and the transit agency, we provide a small annu metropolitan air quality management district. a partnership with the city of folsom over the past two decades, if you will, has been particularly effective. Just during the last five years, the sta has distributed $9 million to the city's transportation department for ongoing street maintenance and operations. in roughly that same period, we provided $37.5 million to the city to construct the folsom lake crossing. It was matching funds needed, as required by the federal government for their participation. We also recently provided substantial funding for the U.S. 50 car-pool lanes, almost $50 million and for project development of the capital southeast connector project. Of course revenues from our previous measure a program, the original measure a were leveraged to construct the lake in a tomorrow make crossing project. So with that kind of delivery, I'm confident in stating to you that the measure a program is successful and effective at delivering the promises that we've made to voters. As we proceed, we look to the future, however, with some level of concern. Measure a is designed to leverage local, state and federal transportation, transportation funds. Our idea, our objective is to provide about a third to a half of the costs of a new capital project.(Is<jdvy- rju k he state proposition 1 b at the state transportation program that we relied on for the last 10 years, those funds have been exhausted. The assembly speaker recently came up with a program to raise additional state revenue in the amount of about $10 billion over the next five years. That's a relatively small amount of money statewide and it also reflects a return of transportation dollars that were taken to balance the general fund, state general fund during the session. So it is helpful, but not the answer to our problems by any means. on the federal side, once again, the federal program for transportation has expired. The highway trust fund, again, flirts with insolvency. In real terms, the state and federal fuel taxes are less now than they were 25 years ago as we faced tremendous construction cost inflation. while we do expect that our state and federal leaders will address these short comings, it's quite likely that they will begin to play a diminished role in transportation funding in the future. This is consistent with the trend over the last 20 years to deinvolve transportation decision-making and policy making to local and regional decision-makers. As local policy-makers, you have assumed greater responsibility in setting transportation plans and policies. You will now become more ^}e responsible for generating the funds required to implement the decisions that you make. So what are some of the challenges we hukwill face as you take more responsibility? Regarding unmet transportation needs during the next 10 to 20 years, there are many, many pending challenges. I want to highlight a couple. First of all, involves street:b(D and road maintenance, the existing backlog tg;p4ybring major streets and county roads to an acceptable pavement condition, approaches about $600 million. within the city of folsom, it's about $15 million. Of course this figure increases every year as we defer road maintenance because we don't have sufficient resources. For context, measure a generates $30 million a year for street maintenance county- wide and folsom receives about $1.7 million. So we provide $1.7 million every year for your $15 million problem. On tl}the transit side, another problem -- regional transit indicates they have sufficient funds to operate the existing bus and light rail system, although they are deferring some maintenance {'c projects. with these challenges, what m6ikdo we do? The sta government board, assuming some enhanced level of responsibility in the future has directed staff to begin q \a community conversation and research project. This program has four key objectives. First, we want to inform county residents of the substantial accomplishments of our measure a program. i reported to you several projects that we have provided to the city of folsom and the communities nearby. Over the last five years, we've actually county-wide, we've put $364 million to work delivering new capital projects, in addition to the operating money and maintenance z|money it provides. However, a lot of people don't know about that because we don't spend a lot of time telling them. The money we have for administration is very small, so not a lot of money to spend on that aspect. But we need to do a better job of telling folks what they are getting for their measure a money. The second element involves us spending more time explaining the sacramento county residents, the extent of our unfunded transportation needs. we want to seek input on the public's transportation priorities, and lastly, the fourth objective is to determine the willingness of county voters to support a supplemental local transportation funding ywdinu8s most likely in the form of %=a supplemental sales s;al~tax program. this outreach effort, sacramento go. Sacramento go involves a speaker's bureau where we provide outreach and information like I'm providing to you right now, along with a video that kind of summarizes some of the things I'm talking about. We made about 35 presentations to date and we have more scheduled. Sacramento go also includes a new interactive website. Sacramentogo.Org. If you go to sacramentogo.Org, you find a lot of information on measure a projects, transportation happenings in sacramento county, and it's interactive. People can leave their observations and their comments regarding transportation and we can review them. we also have a brand-new social media program, facebook, twitter, that kind of thing. Traditionally, when we broke ground to build the measure a project, your measure a sales tax at work. That's helpful when the project begins. What we're doing now as the project is open to the public, we put the sign up, make it more eye-catching. Then we leave the sign up. People b5gare using these facilities, can see their measure a dollars get contributed to it. The last element of sacramento go is the voter, research element telephone polling and focus groups to determine the priorities, how much of a priority is transportation to our community and then what are some of the project priorities of the public. So the overall objective of sacramento go is to raise the profile of the measure a tax program and to prepare transportation maintenance and capital improvement program in anticipation of a potential future supplemental sales tax ballot initiative in 2016. In a second, I'm going to tee up a short 6-minute video that summarizes the sacramento go program. I want to remind you that the clerk put out a brochure in front of you. I put a stack at the back of the room so people can pick that up. As I start, this is an sta- sponsored outreach community program. The sta board has not taken action to pursue a future sales tax initiative and none of the board members have indicated they support the concept. They have authorized staff to begin the conversation. With that, I'm going to click a couple of things here and start this video. There is audio with this video. >>> thank you for joining us today. Sacramento go is the sacramento transportation authority's project to evaluate the pros and find a source of funding for future transportation improvements throughout the region. The authority is a partnership agency of regional transit, para transit, sacramento county and the cities of citrus heights, elk grove, folsom -- and sacramento. The authority administers to half-cent local sales tax and has provided funding for nearly every major sacramento area transportation improvement project for more than 25 years. Known as measure a, it was first approved by voters in 1988 and renewed with 75% support in 2004. The promises made by measure a have been kept by the cities, county and the transit agencies, charged with carrying out the measure's transportation projects. Sacramento has had a 165-year tradition as a north american cross road and in the days of the transcontinental railroad to the convergence of two of america's most important interstate highways, to an efficient system of major boulevards and neighborhood streets. Our transportation system has stimulated the local economy and helped improve the character of our communities. The most important streets are the ones you drive on to work, to school, or to the grocery store. Measure a has helped keep a focus on our neighborhood roadways. One of the highest priorities of our local transportation planners. The most critical congestion relief projects delivered by measure a are visible throughout the region. Folsom to elk grove, citrus heights, just some of the dozens of projects that have reduced stress on our transportation system. Measure a also has made our streets safer, not only for motorists, but for bicyclists, pedestrians and our kids. Transit services are essential to many local residents and critical to the environment. Measure a has made it possible for regional transit to maintain and improve bus service, to extend light rail to folsom and to river college and to make progress on eventual extension to natoma's town center, sacramento international airport. Measure a is a key funding source for one of the fastest growing transportation alternatives in the region, para transit services for older residents and those with disabilities. The long-awaited launch of sacramento's downtown intermodal terminal was only possible with the help of measure a funding. Still, the world has changed since voters approved measure a in 1988 and renewed it a decade ago. It's time to look to the future and possible new ways to pay for needed improvements. That's what sacramento go is all about. while measure a has been very effective in constructing key highway and transit improvements to this point, we still face serious challenges. The bulk of local streets, roads and bridges in the county were built in the ''60s, '70s and '80s and are wearing out all at the same time. Unless we deal with aging infrastructure now, the costs will be much greater in the future. Professional engineering studies clearly show that without additional revenue, the county and some older cities will never catch up. Neither the state nor federal governments are considering serious proposals to help. Meanwhile, the purchasing power from existing gas tax revenues has gone down 60% since the last state increase of 1990 and federal increase in 1993. As we all know, baby boomers are just now reaching retirement age and will live longer than previous generations. In the next few years, many more will stop driving, but will still need access to doctors, stores, entertainment, and religious activities. The need for a variety of transit services for this increasing population will become huge in the next few years. Sacramento go is a project to explore options to meet these and other challenges. Sta is working closely with it's part inner agencies to develop a draft plan to address how a new half-cent sales tax could help. The vast majority of funding would be focused on a fix it first program, filling potholes and repairing decaying roads and bridges. Local agencies would have flexibility and control over a broad range of new approaches, including what's called complete streets program, that rebuild old, worn-out roads to provide new curbs, gutters, sidewalks, bicycle paths, wider and better road beds, high tech traffic controls, and improved safety features. Regional transit will receive additional funding for such things as express bus and rail services, as well as replacement and rehabilitation of old light railcars and stations. Para transit, inc. Would received ad funding for special senior and disabled transit services to address our growing senior population. Three regional priorities are in the mix also. One is a light rail extension from the sacramento valley station intermodal terminal through the natoma town center to sacramento airport. Another is completion of that downtown intermodal terminal, a critical center connecting all of light rail lines, inner city and local bus lines, and amtrak inner city passenger service of the bay area and other west coast cities. The third is the capital south connector road, linking highway 99 and interstate 5 near elk grove through rancho cordova to highway 50 in folsom. All of these regionally important facilities currently receive only partial funding for measure a. A new measure with complete funding for these key projects and deliver them into service to the public many years earlier than is currently possible. It's important for us to hear from you, so please go to our website and let us know what you think. And thank you for investing your time in the better understanding of the challenges we face in the sacramento region. >> well, thank you very much. That concludes my presentation. I would be happy to answer any questions from the council. >> great, thanks. Thanks, brian. Any questions for brian? >> I got one question. >> sure. >> you pointed out how much you gave back to us, you know, in the funding. I guess it's a typical city question I would ask. How much did I give you? >> I don't know offhand. it's data that I can generate. But talk about transportation, we don't talk about city limits or county boundaries. We all go all over the county. >> we can show at the city level to support you regionally. I have no problem. I personally have no problem regionally supporting a fund, but that's not what I represent necessarily and I should have the answers to them, because they asked the question I just asked you. >> very good. >> brian, when does the current measure a sales tax expire? >> the existing measure a, 30- year term expires in 2039. If we proceed with a new sales tax, it would overlay the existing term and then be a little bit, five or six years longer. >> so in terms of selling this to the public, though, you -- how are you guys dealing with the discussions in the capitol about a vehicle mile travel tax that they are looking at adding, because they are losing revenue off the gas tax as gas prices drop and people drive electric vehicles. I think the public's going to be concerned about another tax and then another tax that will come right on its heels. you know how capital works. We'll see that tax on all of our, every mile we drive we'll be taxed on, gas tax. >> I expect if a state program of that sort is ultimately implemented, to access that May require us to put up some local leverage to match it, and that's a traditional thing we've had to do. >> I know, but I'm talking about the taxpayers. >> sure. >> I don't know about everybody else, but I'm sick as paying as many taxes as I'm paying. I assure you this, the gas taxes already out there won't go down if they put this vehicle mile traveled tax. Eventually you get too burdened. >>it's up to my organization to provide a program that has value. if we can't do that, we won't get the support from the community. >> thanks. >> any other questions? >> thanks for being here. The only thing I wanted to add, brian talked about the measure a money that went into lake natoma crossing and folsom lake crossing, and -- well, I think there was also some money that went toward the light rail extension in folsom. But with regard to what the city of folsom has gotten back, in exchange, if you will, for the percentage of sales tax that was paid in folsom, we got a lot back. Thank goodness we got that, not just because of sta, but because of the support in the region for folsom basically get than an inordinate amount of money because lake natoma crossing and folsom lake crossing were both considered very important projects to the region, not just to the city of folsom. >> good point. Thanks. Thanks, brian. >> thank you. >> thanks for tuning that up. Look to hear more as the months move on here. >> great. Thank you very much. >> thanks for coming out. >> thanks. >>> okay. that brings us to our second scheduled presentation this evening, item 5 b, a presentation of the city manager's financial report, including the cafr findings, fiscal year 2014-2015 second quarter financial report. >>> Mr. Mayor, members of council, thank you for reading that title. That saves my voice from going through all that. Jim transes, finance director. Tonight I'm going to give you the highlight of the fiscal year comprehensive annual financial report for fiscal year 2013-2014, and also I'm going to report on the second quarter fiscal financial report for the city. As you know, the cafr is our official audited statements of our financial position. We have again received an unqualified, or clean opinion on all of the financial statements from an independent auditor. On an overall context, what I presented here, I actually have the last two cafr's and then from the quarterly -- or from the quarterly report, the projection for this year. So you can see for '13 and '14, our revenue was up almost 8% to 71 million, and that was both in property tax and sales tax revenue, which I'll talk about a little later as to the reasons for those. Expenditures were up about 3.5 million. we had a $1.6 million that we put in the fund balance at the end of the year, raising our unassigned fund balance for 6.6 million, or 9.5% of expenditures. You know your policy is 15% and we've been building towards that since the recession. This is the third year in a row now that we have actually put funds into fund balance as a result. We also during this year, and I'll speak more specifically to that a little later. As you know, we retired some debt and paid some deficits that had been outstanding. I'll speak to those a little later, not very specific. So overall, the year was financially a very good year. This year, we're projecting that revenue's going to be approximately the same, and we'll get into some of the reasons why that's stayed flat. Expenditures, again, are about the same. they have stayed flat also from last year, as our projections. We said last year when you adopted the budget that we had built in about a half a million dollars that would go to fund balance. We're projecting right now that that number's around $870,000. if that holds, our unassigned fund balance would grow to 7.4 million, or about 10.7%. Again, step in the right direction. This shows just the history of unassigned fund balance, as you can see during the recession, we obviously spent a lot of that down to $4 million. And then these last three years, as I mentioned, we have grown it. This is the last fiscal year where we grew it to 6.6 and 9.5%, and our projection for this year when we finish the fiscal year. To talk a little bit about the major revenue sources, you can see last year, property taxes were up 11%. That's primarily related to the fact that the proposition 8 assessor reassessed a lot of those properties back to their prop 13 levels and that's why we had a growth of 11%. We're not expecting that to be quite as significant this year, which is why we're at 4.9 this year in terms of growth. that would include about a 2% cost of living adjustment the assessor made, plus sale of homes being at higher levels than they were assessed at, plus the assessor making some modifications, some additional modifications to prop 8 homes. sales tax were up 12%. That's a little misleading. We were up because the triple flip, which is a part of our sales tax revenue still, although we're coming into our final year of that by the way. We'll speak more to that at budget time. But the triple flip, they actually estimate that and gave us more than we had coming this year, which is why in this year, that number's going to be down, because they are going to make up for that as a true-up to the triple flip amount that we get. But our sales tax, other than the triple flip, we're up about a million dollars. It's about a 5% increase in sales tax revenues. And we're also looking at roughly that same amount in this fiscal year, offset again by the reduction in triple flip. >> jim, when you present us the, some of the budget stuff in the upcoming month or two, could you show us that just so we get a real good feel for that? >> yeah. >> it just needs to be those last three years, show kind of the raw sales tax stuff because that gives us a real good sense- - >> yeah, we'll break that down very specifically into those categories. Charges for services during the last ky' year were up 11%. There were various numbers of things that accounted for that. Some of the larger ones, though, were the ambulance service revenue that we got last year, and also we had some redevelopment administrative money that came to the city due to the redevelopment, them not making a payment the year before. That accounted for the majority of that increase. Charges, we did not raise the fees during the year and we're projecting that those are going to be fairly flat this year as compared to last year. And then transfers in, you can see is down and is going to remain we project flat. That deals with, if you recall, the maintenance effort we had on public works costs and not transferring in from various funds to offset operational costs, but to use those more for capital projects. And so that reflects that change. Again, on property tax, I just wanted to point out on property tax that last fiscal year was the first year since the recession in the last four years that property taxes actually increased. And I just wanted to point that out because I think a lot of people think, well, the recession's been over for a number of years now, that we've had a growth in that revenue source. And we haven't. It's still been going down through fiscal year '13 and this last fiscal year was the actual turnaround. That's just the opposite of sales tax. It started a lot sooner than that. So I just wanted to point out that during '14 our last fiscal year, we did have that increase and we expect, again, further increase this year. On the expenditure side, you can see dcr t by safety was fairly flat last year, up about 4.4% projected this year, which is right in line with the budgeted amount. General government was up and it looks like 25%, and that really reflects the payoff of some of the debt that we did at the end of the last year and we removed some of the deficits in compensated leave and those were all grouped into this account, general government and nondepartmental accounts. Parks -- so the increase, there was a little bit of a carry- over into this fiscal year with some of those debt payments, which is why that's up about 5%. Otherwise, that would be about a 3% increase. parks and rec was up 5.8 and remains fairly level in terms of that. The difference is accounted for by some vacancies and things of that nature that have happened. And then public works was fairly flat and remains [O#m}fairly flat. Public works and community service. and is going to remain flat this year. Those are all within their budgeted amounts for this fiscal year. Again, just to point out, for the general fund for the projected amount, just to keep in mind, again, we're about 70.8 million in revenue, 69, 70 million in expenditures. We expect about an $870,000 surplus this year. Again, we projected that we had about 500,000. Again, that's reflected of vacancies and vacancies being filled at lower levels, that sort of activity within the organization, which could bring our unassigned fund balance up to over 10%. To talk about some of the other funds, major funds that we have, the water enterprise fund, you can see that the revenue from charges for services is on a downward slant. That reflects the conservation of water now that we're on meters, that gets reflected directly in the amount of revenue we bring in. Expenses are up, but that really reflects capital improvement costs. It's our general operating expense for the water enterprise fund, about $10 million if you discount, or take out the capital improvements. So we're being -- we are covering our operating expense through charges still and being able to accommodate capital improvements through that. Debt services, at about 2 million. This is a little misleading because the cafr separates out principle and interest. So in the cafr, this is only an interest payment. In the projected, that's both your principle and interest. So that's actually a flat number. We didn't have any additional in the fund. And our fund balance, unrestricted net position is a healthy 12.7. It was 14.2. And again, the decline represents money going into the capital projects. Waste water, again, charges for services is fairly flat. We didn't 7k~xhave any change in fees during the year. That's remained flat. Our expenses were flat in last fiscal year. they are up this year again, representing capital expenses. If we used just the operating expense in the waste water fund, it's about $5.1 million that we have as an operating expense without capital expenses. we have no debt in the waste water fund and don't have any anticipated. Again, we have 7 million projected in terms of our net position or fund balance. And the difference from the 10 to the 7 again represents the investment in capital projects. >> so that's basically the same thing &b |that we're doing in both water and waste water? >> yes. >> where the last couple years we nd capital programs and now we are? >> now we are, that's correct. >> okay. >> solid waste, the revenue is fairly flat from year to year and going into this year the same. we have a little uptick in the operating expenses. Again, that represents the purchase of new trucks and we've got about one more year where we're revitalizing the inventory there. Then we'll p7qDrbe on a more normal schedule. That also reflects the decrease in the unrestricted net position, that going into the truck purchase. Again, if you took that out of here, your normal operating expenses would be about 9.5 million for solid waste. >> we've got a little imbalance there, jim. if pitts 9.5 million, that's 600,000 more. But we've got a decrease in the unrestricted position of significantly more than that. >> yeah, 3 million. Well, the 3 million -- well, yeah. No, I und Rund that. The 3 million -- >> are there secret trucks yp>|in there? Just kidding. >> no, they are all -- [ Laughter] >> there's no secret trucks. You couldn't hide one of those things if you tried. >> even with the wrapping, you can still see them. >> yeah, it's really -- you've used that ^Yyyover two fiscal >> is it all trucks? are we replacing cans? >> you're right. You are replacing cans, and as far as trucks, but the majority of it is truck cf costs. >> okay. >> transit, again, is really kind of self-funded. Most of it is thraw nonoperating funds and that's made up there, charges for services, which is a very small part and the rest I9&dit's through enter governmental revenues h) That comes in, expenses have remained about the same in our net positions, about 1.6 million. We had -- this year Gf}there was a 600,000 grant that was miscellaneous revenue posted charges for service. >> jim, another point of clarification on this. I think when you started, you said it takes care of itself8HCkdvy- Udis is the one fund that comes nowhere near to taking care of itself. I think it's important for people in the room and anybody watching this online to know the vast majority of this funding for this comes from outside the city of &g}folsom. >> that's correct. >> state and federal governments subsidies '-of transit systems. >> right. This is + fund, that's correct. >> okay. >> risk management fund is doing well. again, we Gmb_phad, we had an increase of about 6, 7% increase this last fiscal year in cost, but our unrestricted net position is about a little less than 20%, which is about what you %lwant to keep in this fund. These are the primary activities, the employee health, retiree health, workers' comp and liability costs. Again, those have been going up anywhere from 7.5%, which is probably y -- the health u osts, to under 2% down there for liability costs. Again, we're expecting to have about 20%, 2.8 million as yo a net unrestricted position and we expect revenues to see expenses this year. So that fund's in good shape and we expect it to continue that way. The compensated lease fund is one that we had a deficit, as you REkg!rj 1.8 million two years ago. Last year, last fiscal year at the end of the year, this is one of the funds that we wiped that deficit out by putting money ry3 into it. So it's now zero. We now expect f Dzthat to remain at that level. that's going to fluctuate by a few hundred thousand or so every year.&k/up e$$wand down. But k " it's primarily pay-as-you- go type of arrangement. Willow creek, another 7a special revenue fund. They are really, of this amount, as you remember, we bZpz{put in about $100,000 to this deficit. The deficit is really not all -- less than half of it is the deficit. The rest of it e8 }are grants where we've gotten a26%ror we haven't gotten a grant yet, but nti we had gv he expenditures and wq ~the Euy grant's u]\a receivable. So we -- but we still have about $300,000 in that fund that we don't expect to get over time and last year, again, we put in 100,000 and we expect to do that for the next several years to take care of that. the tree planting /0ncspecial revenue fund, again, we addressed that last year by putting some, not only mb8z into it, a(But taking expenses out of it. This is the first projected this year will be the first time that we have revenue j0a exceeding expenses since 2007 and so that will help stabilize this fund and we now hope to w$xa have all the {v>|expens-2]Kgoing directly towards the tree- related services. Those are the major funds. i would open that up for any questions or comments. >> okay. Questions *\for jim? Ernie? oturn myself on. I think the compensated lead that you mentioned is the right wm:b{ direction. That one's been a big concern for the six years I've been on the council. I think -- this council and also -- \SCkvery good direction. Just $)<6ja second. i'll come up with -- well, it's obvious we're still -- I talked to the AiVptcity manager on this "eky - u\8vw we still can't t&b^rget our hand on the overtime money in the fire wg department. It's still a problem. And I understand trying to get people to hire and the time it takes. maybe we have to look again at our process for hiring, if it's streamlined enough that we can do it quicker than we are, maybe not. It's a critical area, so you've got 6dhLlto be sure how you're selecting people, 5 I understand that. People cYKg et hurt. It happens. PEg leave. They did the service, they retire, and they are0b dgone and we have to replace them. But that's still something we have to keep our eye on. I'm sure -- hopefully it's better Iwthan it was six years ago,6f)but we made some big changes, too, on xw g|how k^y*xwe staff f" them. That's still a * (wd concern of mine. i think the report's done real well. Very good. And I did get an { ~understanding of the shading of the system >w now. I know that. Overall, it's a good report. It's a good direction, but there's still room. Sometimes it's boggling to see things going up, you look at the major funding and then we have less in the general fund than last year. You say what is that all about? . >rRbden in the 6 expenses is where it brings us;gf~nback down. That's all. >> well, if I might comment on that, I think what separates the city from jother cities is n( ~ zy that when you tackle, you as the council tackled the issue, you tackled it from an expense side and not / 7as a revenue growth side and that's made all of the difference in the world in terms of turning it around financially. >> and I think give credit to the employees, r oo, h]Zfor cooperating. The unions were good. There was one thing -- now it's come to me. I saw in here on the increase in the health, it's obvious that retired health is getting to be a real, real problem as far as numbers compared to active and retired. But you c gWrone statement in there at the end that talked about increased health benefits. Now, what does that mean? Did you sbgive -- >> it should have -- THEFf=are no increases in the benefits themselves. It's just the cost of those benefits that keeps going up. That's probably higher than, you know, your normal cost of ,l1 ving. We've had 5 to 7% increases in health costs kind of repeatedly. We've done some things, like you say collective bargaining !At have constrained that, but that is an area that is increasing faster than any other area that we have. >> when I read this article, ejv ' %,p6cj% that's *Wd~exactly the assumption ^-ri see it in my own ('qprivate. It's gone up. If you can find a reduction in the copay, $20 increase, so I understand. but your sentence here says about the increase. It says due to the increase in workers' compensation, which I understand, insurer costs, as well as Rzlincrease in retiree's health cost and the increase in active 4 }employee health benefits, that's -- >> it should be health $2~vbenefit costs. It shouldn't be -- >> okay. >> I would say when we come nl9d|to the budget, we Zipreparing h<vean item for your consideration r8z | retiree health costs. >> thank 0! Zyou. >> any comments? >> yeah, jim, I was comparing it to the original projections we had. Interesting, it looks as though we're stalling slightly in home sales 5,~rseem to be stalling slightly -- {it's kind of similar for the region. We had a)Jiolittle bit of -- we had optimistic for steady slow growth and we had some slow growth, now we seem to be stalling slightly, which is a little bit of a concern, especially given the fact that gasoline prices are falling so far. You would thought we would have more energy to keep it going, have more momentum. Typically will. Are you going to end,p:Qb on projections, or are you thinking we'll end -- >> I think we'll be close to our projections. We've taken that into account. Home sales 1/ down this year from, say, 81 a month to about 75. So it's that magnitude. But prices are still up. They are I not up as high as they were earlier years. We won't get the benefit, like I e o}said, the prop 8 shift p"{that the assessor does, sHnalthough we'll still get a little bit of that. There's, there's a little bit to go. Where you don't get it even now and f-v[We probably won't ever get it is in the 51jo|commercial k} ~side. Commercial property is still not recovering where it used to be in lCPcterms of assessed 4,c value. Sales have been slower, but steady. You know, it's a ix again, it's not saying anything that's going to wow anyone, but it's a slow, steady increase. We w;"x}would expect that 7Cp.}to continue. from what we g9 gather in terms of reading, you f86d|know, what people are doing with their savings from their gas, they are not necessarily spending it, but they are paying down debt at this point. >> not a bad thing. >> not a bad thing for them. >> I would just make sure I caution, I think we're still going to see a slight -- very, very slow crawl out of this, so we got to make sure that expenses continue to be kept -- you e9 ~ -pguys are doing that, but we need to make sure we don't get ahead of ourselves in spending because this is not going to recover as quickly as we had all hoped. Add that bu^~caution. >> yeah, I still continue s`to think, as I told YoNh$xwhen I first came in 2008, we're on about a 10-year cycle. >> right. >> I think we're still on that cycle. >> thanks, jim, as always. And we talk about this being a great report, and it is. But it's a great report >m0bxthat really reflects some great, sound strategy and, you know, we've been working at this for a lot of years and it's nice to see the conservative nature of how we're operating there and, you know, really feel comfortable going ahead and jeff's right, and I know our staff is all over that, to not get too excited about anything. but keep doing what we're | doing. But thanks. Thanks, jim. And thanks to everybody who is a big >v=~part of 5I+e~ >>> okay. That completes our scheduled presentations. Our next item here 7fis business from the floor. This is an opportunity for folks to address the council and the community on any item that is not on our agenda this evening. and with that, I do have about seven requests to speak. So we will work through these. We a+Sytypically limit commentary to three minutes. Our timer is not working, so we'll, we'll estimate the best we can and work a timer up here. But hopefully that will give everybody a chance to explain zu9$} exactly what's on their minds this evening. So to begin, let's see, let's start with 5zrerg. After lisa will be marshall -- marsha carl, then alex roddenberry. lisa followed by marsha ^0&-n o followed by alex. >>> good evening, lisa. >> good evening. This is my first time here even talking td a group of individuals, so I'm excited to 0nl be here. I have lived in folsom my entire life. I'm a local teacher here *rv]V8u local junior high. And I've been encountering a problem in our community which has / been very dear and close to my heart,?V1a situation here where there is a local group of women that are going around to different grocery stores using their children to gain money r/6Xu from community members. And I have contacted the Mbv?Pfolsom police, dps and the store managers j' and yet the problem still exists. I was hoping that we can come to an agreement upon how to solve the problem. >> okay. So just some -- panhandling, that form? >> yeah, and I totally understand like in this economy, people are needing money, this and that. But it's really hard to give to someone when they are using their kids to ask for money. And then furthermore, these people are getting in cars <$Wvand it seems to be their spouses are sitting in the cars watching them do it. Seems like they are coming in from other cities. >> where are you seeing this? Because I haven't seen this anywhere yet. >> trader joe's, target, in & out, sam's club gas station. We have pictures of them. People.5+-zpost pictures of them all the time on facebook. >> thanks for bringing that to our attention. >> is there something we can do as a community? Where do I go with it? >> you know what we can do, it vqpears there are others who express the same concern. After you speak, I'll have the city manager mention something we can work towards. >> yeah, that would be great. >> our police chief is in the audience as 9Pp&l. >> thank you. >> thank you. Thanks for coming out today, lisa. >>> marsha followed by alex. Then after alex o9x}is gwen wilson. Marsha. Good evening, marsha. >> h8&zhi. I'm marsha carl. I monitor the folsom watch page and we have almost 2000 members. We just, we're about six months old. And in the last few days, Nmtwe've had almost 500 comments on the panhandling issue. >> okay. >> people are very concerned about the safety, being approached, just what it makes our community look like to be & bothered 77d<with these people. you know, the 1xparticulars, there's one particular woman who is pretty aggressive and not always nice to people. And so r a problem. She's the one that's been at target. Well, actually, I don't know where all she's been, but I personally saw her at target yesterday. She's got a little, a little child with her and they do get in a car and drive off. Bk8=% it's a pretty nice car. >> aRXzobjnsounds like they -- >> there's a 6u lot of people in the community in a are concerned. >> okay. Sounds like they have a real c+ common mode of operation. >> yeah. >> icapokay. Thanks. >> thank you. >>> okay. Alex followed by gwen followed by mary anne. Hi, gwen. >> I'm also here to talk d_ about the aggressive panhandling. It's a big concern. I'm from]*]Otolsom as well, since I was 13 years old. I get out of my car with my 2- year-old and 7-month-old and this girl as her 7-year-old in i'm a stay at home mom pretty much. I need my money. I don't need my kids to see me in a situation at trader joe's or target. Please don't l~*,*@mtell my husband. >> fmyou're on tv. It's now and forever. you're going to have to fess up. >> this woman is at target every day. I have approached her when I wasn't with my t; ~kids. Where is your daughter? No, no, no, no english, but you're going to ask me for money. I've talked to the management at target. Liz is a manager at target and has asked them to leave, and called k~_the police department and I have personally called }w9n| the police department, and they said there is nothing they can do. So I would like to see what we c@;<$& to put this on the agenda for the next meeting so maybe we can get a city ordinance to do Kk&(Something about this, where aggressive panhandling is not just something that there's nothing we can okdo about it. We can have these people come >BCp:9hthem to leave. and if they do come b!Ly;we can do something about that. I know there was just a news report on kcra.Com in regards to panhandling in stockton, I believe. They were able to do something. I think as a city, we can defer our resources to people that do need it and look at the right places to help, like the fols `| food bank and stuff }like that. Not just approaching us at our cars and b\ uncomfortable situations. >> great. Elequent. Thank w0v9xyou. >>> gwen? Mary u&FLuanne follows gwen, then jd. >> thank you for hearing us. I would like to echo what alex {d just said. i didn't myself encounter one of these panhandlers this morning in the winn co shopping center opposite the montessori school. She had a small child with her. I think there is maybe a group. Some people ` rcall them a gypsy group. They are gaining a strong foot hold in this community. They are being spotted at all of the major ^,01shopping areas. Paladio, trader joe's. I've heard about them being in front of home depot. So we desperately need an ordinance in this town where we can call the police when we feel like we're being pressured. I mean, some of these people come at you and you can hardly get out of your car before they are in your face with a sign that says I'm homeless, help me, I have no money. And they are well-dressed, well- groomed, coming and going in late model cars, and they are gaining quite a foot hold in this town. I think they are putting a (]? Bad face Nmwon folsom. k&<}really need the ability to turn $, ~these people out. >> thank you. >> thank you. >>> mary anne? Following mary anne is jd. >> hi. I've lived here 23 years and in my community service, I have) worked with cert, caps, and the chamber of commerce. And we 0 "renjoy a wonderful police force and fire department here that work very hard to keep our city crime-free, gang-h (>h[Y - p#fiti-free, and we would like to see that continue. We don't want the level of life- style that we ba@q{have here to change, and that's why we would like to know how we get ABOUkqf/| getting a city ordinance to cover aggressive panhandling. I understand that sacramento county is working on n|p-kone. They haven't finalized it. >> right. >> but we also understand that when the police are called, their hands are tied because these people are on private property. Unless the managers complain, then vx dey can get them on trespassing. Is that right? However, they only get like a ticket. So it's a misdemeanor. So there's really not a lot of incentive unless we do something more firm. Okay. >> thank you for your service in the community, mary anne=4p[Zkdvy- Udat's the last speaker on that topic. So I would just ask the city manager just to share a thought or two. >> sure. Mr. Mayor, members gh]the council, you'll recall, it was maybe perhaps about 11 months ago now where we did make some qy#x~ refinements to our ordinances with regard to this type xp9Ogof behavior. It is generally referred to as panhandling, but there are a lot of]76b^raggressive behaviors that we kind of lump into this category. As you recall from that conversation, these are challenging conversations due to first amendment rights and that is partially what drives!~.J some of the private property owners and ties z,h their hands. It's not necessarily exclusively a private property issue. It's not always a first amendment issue because first amendment doesn't provide the opportunity for people to do anything. But what we can do in this particular case is get a little bit more information about the specific circ`"v;nces of these encounters that 5+cbpwe're dealing with now and see if there aren't some further refinements that we can look at in terms of improving and maintaining the quality of life. These are very important issues and we do deal with them time to time as these type of behaviors become more sophisticated. >> all right. Thanks. So yeah, we'll -- we are good at solving most problems in the community, so we will give that a lot of attention. >>> okay. Next on business from AKuthe fKbi3x floor,jt maher. Good evening. >> I'm a retired television meteorologist here in q cramento who found an interesting career after tv, and that is in the solar industry. I've been working in the solar industry for about 10 years and I'm also an educator, 29 years in public education. I'm here to tell you about a terrific opportunity that I #f believe is a great fit for folsom. As we all know, we're currently receiving directors from the state to reduce our energy consumption and to conserve water because of the historical drought. Nobody knows that better than a retired meteorologist. So most homeowners at this time, though, can't really w9 afford the well-needed energy efficiency and water conservation upgrades to their homes, let p._7=9e to go solar. Not all homeowners can rely on traditional financing options that are out there. That's why I'm here today. I'm here on behalf of all of *hclients and our future clients who have not jzq%|been able to upgrade perhaps their air conditioning units or to perhaps create water efficiency controls on their properties or homes, or also to go solar. I'm here on behalf of a few more clients that would like to go solar, but can't go through the traditional financing methods. I'm here also gZthfor clients in this community that have asked b=f$} about the hero program. Hero is a voluntary financing option that is very attractive to a lot of our clients. However, it has not been made available in the town of folsom yet. Over 200 municipalities have adopted hero, and I'm here to ask you to do the same. Not only will it allow z?R our homeowners z hto have access to energy efficiency, water conservation upgrades to their homes, and }*Voralso p7.Jthe ability to go solar, but r will also generate a lot of revenue for the city, create jobs, and put c< money, of course, back in the pockets of our residents. The hero program is a win-win for all involved and I'm hoping that you all, after I give you some information here, will contact the hero program and help us get the ball rolling. We have many customers that are waiting, waiting on a waiting list, and are waiting for the upgrades to the hero program. Our company is not really specific to going hero, but k 12 solar, to finish up my time, we're working, we're excited, we're working a lot in other counties, other communities with specifically churches and private schools and they are very excited about this opportunity. So I'm going to leave at that and pass these out to the clerk and hopefully you'll take time to read this. >> great. Thanks for coming out. >> thank you very much. >>> okay, and our final speaker on business from the floor, debbie dost. >> good evening. >> hi, debbie. >> hi. nice to see all of you. I just wanted to say one thing first. Thank you for doing all your hard work. I know you guys work @LHb}really hard for very little and you all have full-time jobs, and I appreciate it. I know sometimes I don't seem like I appreciate it, but I do. Just recently, I went to city hall and { business and I was excited to see the 2035 general plan idea and the forum idea and all that. And I really wanted to participate in it and I added my name, but I couldn't add anything to the forum. So I wanted to do that and I wanted to find out more about the general plan as well, because I realized I needed to get more involved here. And a lot of work is done voluntarily and I want to get involved with that. So just want more information about what's u "happening so I can get more involved. >> okay. Great.Bhy^}dvy- :tq(R#ic to the general plan? >> yes, I want to see what's going on, because that shows the road map for what's going to happen in our city, which is very exciting. >> great. I'm sure if you visit our community development department, they can get you pointed in all sorts of different directions there. >> awesome. Also, there was some town hall meetings that are supposed to occur and stuff like that. >> they can -- >> they are going to do that too? >> they can give you the schedule for that and take care of you. >> awesome. Thank you. >> thank you. >> debbie, I made a suggestion at the f meeting, very shortly after |that, we're having saca come out and bv[;|a full blown update on the metropolitan transportation plan for 2035. >> okay. >> there's an integral part of folsom involved in that plan. That's why we invited them to come out. If you want to hear some of that, it will be a part of the overall planning, you can come to that. >> thank you very much. We can attend? >> it's here in the council meeting. >> okay. I'll be here. Thank you. >> you're welcome. >>> that concludes t0 from the floor. We'll move to f< qour consent calendar. And with that, I'll go ahead I2j vy- pgd move a, b, e and f. >> second. >> item -- >> okay. so I'll move a, b and e. >> second. >> Cp moved and seconded. Please call the roll on that. >> sheldon. >> yes. >> starsky. >> yes. >> howell. >> miklos. >> ' ~yes. >> morin. >> sheldon. >> yes. >> starsky. >> yes. >> howell. >> miklos. >> morin. >> yes. >> I'll move revised resolution 9500. >> are we -- is there anything that needed to be talked about there? >> mayor morin, members of the council, I'm with the environmental resources director. on item, resolution 9500, we did receive a bid protest k (Y earlier today. That bid protest was withdrawn ~:29qthe contractor, thus =wqq)E were two packages in the back and probably in front of you, one for modification and the second modifying that the bid process was withdrawn. >> okay. >> so we would CIprecommend approving resolution 9500 as it is in the revised report. >> very good. Motion and second. >> sheldon. >> yes. >> starsky. >> yes. >> howell. >> yes. >> miklos. >> yes. >> morin. >> 5h .:r0@6cj% >>> 9502, resolution of the city of folsom authorizing the city manufacturing to execute an agreement with 4ruvintage willow creek usa properties approving loan modifications. Jeff? >> question for jim and council. So I'm in 3d mfavor of the policy behind the loan modification for them, because of the housing stock. I understand what you want to accomplish there. But one concern I have is if we're going to do m` t, wanted to be sure, didn't have a +2cq,@6cj% chance to talk to you, but did you scrub the financials of this organization Nmto make sure? I want to make sure they are not paying people big sums of money, then asking to defer the loan payment because there are very interesting connections between them, their maintenance company, all interrelated. I want to be sure you subscribed the financials because I'm not going to -- I'm y `not going to agree to defer $400,000 to somebody that's paying themselves a lot of money. Jim, where are we on that? >> yeah, I sat down and went through all d&yyof those financials to a certain -- what ability they would have to pay and whether or not there were any costs that seemed not appropriate, my{m.shall we say, and I came away with the findings that they did not have "sykyeanything like that. Certainly what they can pay, what we (]]WkSgput in here is really probably a stretch for them to come up with every quarter. >> did a1>q~you see the enter relationship between the companies? There's different financials, but they are very interrelated. >> yeah, I -- yes, I saw both companies, at least part of their financials. I can't say that I saw all of them, because some of them were not privy to me 4=1\1bujjrat. >> okay. Just have some concerns. Is it based upon the fact that they are not getting the rate increases they were expecting? Is that the -- >> yeah, the rate 58&a8creases are based on the median income movement and it actually has gone down. And so they haven't been able to make any of the rate increases that they had anticipated initially. >> okay. It's a legitimate reason. I just want to be sure there's not something goofy going on. >> I understand. >> okay. Thanks. >> okay. >> good question. >> I'll move the resolution. >> okay. I'll go ahead and second. So item 7 f, moved and seconded. please call the roll. >> sheldon. >> yes. >> starsky. >> yes. >> howell. >> yes. >> miklos. >> yes. >> morin. >> yes. >>> that moves us to the last item of the evening under new business, 8 a, folsom community facilities district number 17, willow hill pipeline. jim's got the spotlight repeated. >> Mr. Mayor, b<*~members of the council, the resolution that we presented you, there is a modification to that. I want to ql(Upoint that out, resolution Wt 9503. We believe "u1a}all of those are not significant changes, but,Hhrather clarification 2,@uchanges. >> did you need 9403? I trv >> 95? >> CCak~95 by the modification. >> okay. >>? .I got an old version. We're good. Never mind. >> again, those are -- we don't believe those 1 are;Oh4vtsignificant changes, but rather clarifications. This is the first steps in setting up the cfd, community facilities district number 17 for the willow hill pipeline. As you might remember, the project is the rehabilitation of a pipe to the willow creek reservoir to help eliminate the leaks in that pipe system. The project will benefit the entire city. It will help us reduce our average per capita water consumption;repairing the leak. The project was agreed to be paid for by the south of 50 land owners as part of the water supply agreement and also as }=}part of the development agreement that you have approved. The project itself was approved by the city council last June when we presented -- went out to bid and presented and awarded a bid at that time. The financing Wi'plan that we have through the cfd is, again, the total project cost is 7.6 million. We have secured a $1.9 million grant from the state department g][P of water resources. We intend upon your approval to issue a bond@ Qkf0|for the remaining 5.7 million. that will be secured by the property south of 50. The maximum special tax u=rate will have a 2% annual escalator in it to ensure that we are,nz getting enough funds to pay for the debt service. The total tax rate including the prop 13 rate is less than your policy of 2%. And the valuef0z(Eto lien calculation, again, is greater than 3 to 1, which in the policy is actually 13 to 1, so 6mf} not even close. And so what @ we're asking you tonight is to approve the proposed boundaries, again, the revised resolution, 9503, clear the intent to agform a cfd and revised resolution 9503, declare m~intent s*1j to levy special taxes 9503, and declare the necessity of 0h%{incurring bonded indebtedness, 9504, and set a "chublic hearing which I believe is Ma