 Alright, Madam City Clerk, it looks like we have a quorum. Let's go ahead and call the roll and resume our council meeting. Thank you. Good morning, Council. Council Member Tibbetts. Council Member Schwedhelm. Here. Council Member Sawyer. Here. Council Member Fleming. Here. Council Member Alvarez. Vice Mayor Rogers. Present. Mayor Rogers. Here. Council Member Tibbetts, have you joined us? Okay, let the record show that all council members are present with the exception of Council Member Tibbetts. Great, thank you so much. And Madam Zoom hosts, can you please explain how folks can access the Spanish translation for today's meeting, as well as how to participate in public comment at the end of our study session. We're having a little bit of trouble hearing you. Sounds like you're under water. My apologies. Is that better? There we go. Okay. Live translation in Spanish is available and members wishing to listen in Spanish can join the Spanish channel. To do so, click on the interpretation icon in the Zoom toolbar. It looks like a globe. Once you join the Spanish channel, we recommend you shut off the main audio so you can only hear the Spanish translation. And the interpretation in Spanish is available and people who wish to listen in Spanish can join the Spanish channel. To change the channel, you can click on the interpretation icon in the Zoom toolbar. It looks like a globe. Excellent, thank you. And so as a reminder, this is a continuation of yesterday's Item 3.1, our study session. We'll allow staff to finish their presentation and then we will go to public comment as well as final Council Member Comments for the day. Mr. Manager, do you want to kick us back off? Yes, thank you. I'm going to turn it over to Megan Bassender, who is the Director of the Housing and Community Services part of the portfolio. Megan, it is now in your court. Good morning, Mayor Rogers and members of Council and Megan Bassinger, Interim Director of Housing and Community Services, and I'm pleased to present to you our proposed budget for fiscal year 21-22. There are two primary components of this budget, the general fund, which is approximately 1% of Housing and Community Services budget, and then the federal contributions. City Clerk, can you put the slides up please? And I believe we're on slide 68. One moment, please. Okay, thank you. All right. We'll begin with the controllable costs for the general fund component of Housing and Community Services. We have a contract with Legal Aid, which provides legal services for low income residents. It has a base amount of $87,000 a year, and Legal Aid is requesting an additional $5,000 for the upcoming fiscal year. We're going to cover this with our community development block grant COVID funds, and this was reflected in slide number four on yesterday's presentation. If we continue with an increased contract of $92,000, that will be a general fund request in the future. Next slide please. As you can see, this is a summary of Housing and Community Services general fund budget. The proposed fiscal year 21-22 budget is $245,000. This covers 50% of one position, as well as the Legal Aid contract that I just mentioned. And then, as you can see in the O&M projects, it's $50,000. And this is for funding that the city provides to the County of Sonoma for the Secure Families Fund, and I will get to that in the next slide. Another notable change that you can see in the general fund is in fiscal year 19-20. The general fund component was $1.7 million. This was when Code Enforcement and the Neighborhood Revitalization Program were in Housing and Community Services. Those have moved under the Building Division and were reflected in yesterday afternoon's Planning and Economic Development presentation. Next slide please. So as I mentioned, the Secure Families Fund has had a base request of $50,000 in prior years, and this year they're requesting $25,000 additional dollars. This would be a general fund request that has not been identified for funding. This is also a community-wide program to address the needs of the immigrant community. Next slide please. So as I mentioned, the Housing and Community Services Department receives the majority of its funds, approximately 99%, through other funding sources, primarily the U.S. Department of Housing and Urban Development. As you can see, the proposed budget for $21.22 has a little over $44 million coming through the Housing Authority, and this would be for the Section 8 program, as well as funding for the Santa Rosa Housing Trust. We also receive a small portion of funding, less than 1%, through Mobile Home Rent Stabilization. These are fees that are collected through the Mobile Home Rent Control Ordinance, and then as we just touched on the $245,000 in general fund dollars for the department. Next slide please. So the Mobile Home Rent Stabilization program provides rent control for over 1,600 spaces at 17 parks in Santa Rosa. We perform the duties of the Housing Authority. This is the Section 8 Housing Choice Voucher program. This provides ongoing rental assistance to over 2,000 households within the city limits. And then we have the Santa Rosa Housing Trust, which provides loans to developers to create affordable units that are generally restricted for 55 years, as well as perform tenant-based rental assistance, which is similar to the Housing Choice Voucher program is additional opportunity to assist those households that are in financial need. All these tasks are done through 24 staff members. And that, I think, next slide please. That concludes my portion of the presentation, and I'd be happy to answer any questions. Great. Councilor, are there any questions? Council Member Sveta. Thank you, Mr. Mayor. Thank you, Megan, for that presentation. Do you know regarding the Secure Family Fund request to basically double our contribution? Do we know what happened with the first $25,000, and what will we get for this additional $25,000? I don't have that information today, but be happy to gather that and come back with that. Yeah, I would be interested. Again, I'm very supportive of the Secure Family Fund request, but doubling in, I'm just interested as to what those results we can anticipate. Thank you. Just for clarification, if it's $50,000 is the base request, and if it's additional, it's being requested. Okay, 50% increase. All right, thank you. Yes, Mayor. Hi, Megan. I just wanted to ask about the mobile home rent stabilization. Does that affect people that are on seniors that are on fixed incomes? So the mobile home rent stabilization is over 1,600 units in spaces throughout the city's mobile home parks. So there's a little over 2,000 spaces. So the majority of them are covered. This provides a cap that rents can be increased annually. So it's a way to ensure that the residents of mobile home parks do not suffer from excessive rent increases. Okay, because the last that I was aware, the rent increase was more than actual, a lot of people are on social security. So the rent increase, the percentage was higher than what the social security increases. Is this the same? So the city, the city's rent control ordinance is based on the consumer price index, which is different than the social security increase. It also applies to all mobile home parks, which have households of all ages, not just senior citizens. But this is an interest that has been expressed by mobile home park residents is reviewing the ordinance and it is on our list of items to address for the department. Perfect. Thank you so much. Any other questions? Thank you so much, Miss Basinger. So next we'll switch to the internal services departments and I will walk through the first two, which is the city council and city manager's office budgets. If we could have the slides up for that please. Next slide please. So one item that has been identified that is a necessity for council to address is redistricting costs currently we've budgeted another 200,000 at one time. And this is due to the census results that are coming in. As councils heard before those results are unfortunately dragging, and that means that is closing the gap on what is possible. I believe on June 8, the city attorney can correct me. There is a study session plan to discuss redistricting as well as options around charter review. Next slide please. So these are some additional items in the budget. I want to just point out a couple of things. There's 164,000 ongoing increase to provide Spanish translations for live meetings, agendas and closed captioning. We are proposing because community promotions was severely impacted over the last two years due to COVID and it was not run this year is reallocating those funds to primarily cover potential costs around any kind of charter review. And the next item that we have is a budget process. Exploration the council wants to explore that would be predominantly a year cost this year. But it would then allow community promotions to resume and the following fiscal year and the process usually trail is usually ahead of the budget process. In addition to that, the council does not have any kind of community outreach or program the council wants to consider around the charter reform. Additionally, there's additional money in the budget for some community engagement plan support. Also reallocated from the community promotions fund. In addition, there is homeless services has been moved to the city manager's office. In addition to that, there's additional money, which is a common being paid for by CDBG CV funds to come to finish out the salmon Jones annex to maybe a support to complete the support services model there in the future years the operating costs for that will have to come back to council for general fund allocation. And there is going to be a we're setting aside some money to do a safe parking pilot program that particular programs details will come to council on 622. So that in the daddy being in the budget hearing you can allocate the funds for that but we're proposing setting aside that we had hoped. It's optimistic that we may be able to move in a joint venture with the county. Unfortunately, their timetable has been delayed. We still are hopeful maybe we can work on a pilot program together with them. But if I'm sure that on the 622 will have more details about what is possible in collaboration with the county move forward. So I just want to highlight a couple of things in the city council budget. You'll notice that the benefit line has gone down the reason the benefit line has gone down is primarily due to changes on councils selections on their benefit packages associated with their position so that's that's a typical change we see during council turnover is some adjustment in the benefit line. Additionally, you'll notice professional services has gone down and a lot of that has to do with the fact that we were in a general election last year. And that's that impacted that budget remember $500,000 was set aside to do the general elections and those those are are costly endeavors but they do not obviously take place every year. Additionally, additional in other miscellaneous. There were some print services from those elections and there has been a slight decrease of about $20,000 to conferences and training in that budget line. Next along. So on the city manager's budget, you'll see an increase in salary that's the limited term position that was added mid year to support the extended work of the clerk's office. That's a two year position will be reevaluated at the end of those two years to see if it is something we need to maintain within the city framework. So we'll see some professional services. This is also a decrease from to 1920 actual so we're cutting that budget ahead of time to what those actual expenditures were in the utilities line you're seeing a slow decrease and that is a decrease in phone charges and ads and smartphones and then the other miscellaneous decrease is again going back to actuals and a reduction in conferences training and printer and copier services. And next slide. So that's the overall change in the budget. You'll notice that these were added to the city manager's budget as homelessness was moved at the in the final quarter or so of last year into the city manager's offices. Next slide. And again, just wanted to reiterate those two additional one time funding requests. And annex expansion, including services. That will become a general fund request in future years. This was a complete the fit out of the facility and also expands a service model. And then on the study session on June 22nd, we will be coming back to propose a pilot program for the council to consider around safe parking. Next slide. And this was the last thing I wanted to just lay out for the council is the commitment from staff to run through a RFP timeline for our general homelessness services contract which is currently administered by Catholic Charities. So this is the program roll out so that if we were into a selection of a new provider or providers that award could take place next fiscal year. Next slide. And now I'm happy to answer any questions before turning it over to the city attorney. Thank you. Questions for the city manager. Thank you, Mayor. I'm curious. I know this is a small amount, but I'm wondering if is there any value in in obligating $250,000 every year to to the elections knowing that every two years, we spend a half a million or more. It's such a small amount that it really doesn't matter. I mean, it is something that we always anticipate it's always sitting there and we budget the 500,000 every other year. Is there any value in breaking it up into two years or is it such a small amount that it doesn't matter. Well, again, it's it's an expenditure that corresponds with the election cycle. What we can look back at council member is the training analysis over the last five, six years and see if that is a question of worth asking so I will note it and we'll look at it and we'll see if there's any anything we need to adjust that sort of rhythm. But in reality, it's significant the cost significantly increased with with an actual election and and then we're going to be putting things on the ballot for consideration so there is true cost increase there, but we'll look at that. Absolutely. All right. Thank you. Thank you, Mr. Mayor. Thank you, Mr. McGlinn for the presentation. I have two questions. One I recall last year. I was specifically called out $68,000 for homeless services on the point for the point in time count, which did not occur last year. I didn't see any mention of that this year because we're mandated by had to do it every at least every two years and Sonoma County had done it every year. Do we have funding to assist the point in time count this year. I will I may be caught up in the wash and the transference between divisions, but we'll make sure that's addressed and I'll bring it forward and where specifically that is, but yes. Great. Thank you. And then regarding the safe parking. So I know when this came before council in February we're given three options of a basic operation a program operator and a housing focus program. And I think the majority of council were supportive of the housing focus shelter, which came into price tag about believe 530 K, not 315 K. And I know we'll have a more robust discussion on June 22. But as a placeholder, why do we choose 315 versus 530 for this? Well, you'll have some options. We're trying to figure out how to fund it longer term. We'll be looking specifically at that. We were, we were going to be focusing on a six month pilot program. We were hoping, as I said, to, to engage with the county and, and, and potentially divide these costs between the two agencies that hasn't progressed as much as we like. So while we're putting the 315 holder out there, there may be some more conversations that they had about the investment. And the idea that we will, we were trying to get to the finish line is a partnership arrangement with, with the county and advancing this conversation. Right. And I appreciate that as I mentioned many times we have to take a regional approach to this. I'm just hoping we don't come to that close to budget approval where we have to find another, you know, 200 K to do an evidence based housing focused safe parking program versus a less service intensive program. Well, as we look at potentially what our funding is, we're going to look at that as well. But the reality is that, that somewhere we're going to have to find the difference if we can't make up the match, right? So that, that's the reason we're trying to schedule a study session before you actually get into the budget hearing because that there are some questions about scope scale so that the council then can come back and be here and you make the appropriate adjustment. Okay. Great. Thank you. That's a member Alvarez. Thank you, Mayor. City managers, I appreciate the report, sir. And I want to echo council member Schweldam's comments in regards to the regional participation. What reasoning did the county give of why they aren't able to participate in the conversations now? And secondly, in regards to finding that funding for the homeless safe parking, specifically, is it possible to petition the county to increase their contribution of sales tax or increase the amount that we get through the dividends through sales tax? So I'm going to defer a little bit to the mayor here on the reasoning. And I know the mayor and the vice mayor were in their conversation with the county that we were hopefully going to see move forward, but I'm going to defer to them on the answer to that particular question. Yeah, I'll step in a little bit council member. We have these conversations that are ongoing in fact we'll be meeting again with the county. I think tomorrow, or at least representatives from the county to talk about how we can better collaborate and it comes from a understanding that the county and the city now have very similar, if not identical policies that we are pursuing, as well as this tranche of one time funding that we're also trying to figure out how we can best utilize it. So I appreciate the city manager putting some funding in here, if not as a placeholder, something that we can do with our own program budgets. I think we all agree that something done regionally and coordinated is going to be better long term for our community. So we're trying to make sure that we still get to that point, putting our skin in the game. But I'll keep the council in the loop as we have those conversations that I think by June when we are set to approve a new program for the council, I think we'll know better how and and to what extent we're going to be able to coordinate with the county. Thank you both. Vice mayor did you have anything to add. Okay, we'll keep you in the loop then. Thank you Mr city manager. I did have just one quick question. A lot of these funds are the American Rescue Plan Act funds that we're talking about when we talk about one time funds. Do we have any idea when we'll have a full understanding of the guidance of how we can utilize those funds. It is very much a work in progress what we're trying to do is, you'll see later on in the presentation we're trying to gear up for a conversation with the long term finance and audit committee on June 10, and then come back to have a direction and implementation conversation with the council on July, I believe 13. So we're trying to really address those issues I think it's very much in in analysis phase there was a I believe 167 page guidance passed out last week. The city's League of California cities and our own, our own lobby team are working through what that what that means and be and trying to parse out some of the language, I think very shortly we're going to get more clarity and we'll be working with the council to try to drive to with that implementation date in July. Thank you so much. Are there any other questions for the city manager. Okay, let's keep moving. Turn over to the city attorney's calendar. Good morning, Mr Mayor and council members. We can go on to the next slide. I will know to begin with city attorney's office is a fully a general fund department. Also that we do on occasion, collect attorney's fees in our litigation. Those fees are submitted into the general fund and are not credited specifically to the city attorney's office. We have 16 fte's and that has been stable now for several years. In terms of the cost escalations and controllable costs. We are asking for additional 120,000 for outside legal counsel. The city attorney's additional monies are primarily to address increasing real estate needs. As you heard from assistant city manager Jason nut yesterday, the city's real estate activity is dramatically increasing. And more and more, not only is are the number of transactions increasing, but the level of sophistication and complexity. Similarly, we're looking at a number of really quite sophisticated transactions that are relating to our downtown development goals. So these additional funds will go towards our outside council as to assist us as we engage in the process internally to build an internal capacity for more of the real estate work. So we're looking at a number of ways that going forward will still rely in part on outside council when we get into some of the larger projects such as a p3. In addition, this money will help to provide assistance in our sequel litigation. We have seen an increased frequency in sequel lawsuits, as we are seeing members of the public seek to use sequel litigation as an avenue to challenge a city policy. We do have very strong secret expertise within the office, but our secret attorney is devoted to advice and environmental review work, as well as providing support for PED generally. We simply just don't have the resources in house to devote an attorney full time to to litigation as it comes forward. So those are really the two areas that we are anticipating increased need for outside legal counsel real estate and sequel litigation. The next page is our overall budget, couple of things to note or to highlight salaries are increasing not due to any increase in personnel, but simply we have a reclassification in the works. One promotion last year, and a couple of merit increases just on standard course so those are those increases. And like other departments, we were asked and did look at areas to cut costs. Again, the large bulk of our costs as in many departments is in salaries and benefits, our ability to cut other costs is fairly limited. We did reduce our operational supplies, and then you'll see in the category of other miscellaneous we did cut those costs as well again not large dollar amounts, but it's where we have flexibility the only place that we have flexibility. So miscellaneous includes our training, as you may know, attorneys in California have annual requirements for continuing legal education. So this is to help cover that training conferences, professional dues, of course we have every year, and a few, a few other other matters. We do see a reduction in the CIP and on M projects. This relates to some software that we are have been evaluating to improve our efficiency of our operations. And we still have some money in our funds for that so we are not looking for any additional funds this year. And that's really pretty simple straightforward budget happy to answer any questions. That's members to have any questions for the city attorney. I did just want to appreciate really fast so I know in the last couple of years budgets, we've allocated some funds for additional work. And I know you've been brought that on. And it's been a huge help for your office and for the city I know so I did want to acknowledge that that did take place this year. Thank you. Thank you. Okay, we'll go on to the next presentation. The next park presenter will be Adrian Martin's and she will be present. She's the lead and presenting communications in our governmental relations. Good morning, Mayor vice mayor and members of the council. I'm pleased to be here to present the communications in our governmental relations office budget, also internally known as zero. And we're going to be fairly brief as we have just one slide that is before you now for fiscal year 2021. This was the first budget for zero and that's why there's no budget history for 1920. Our department budget includes seven fte's the same fte count as the prior year for the fte's budgeted within the department this includes the director position five fte's that support the outreach and public information of the city and one fte position that will support the intergovernmental relations and legislative advocacy coordination for the city. Additionally, a communications coordinator and a community outreach specialist that support the water department are embedded in serial zero though their salaries are reflected in the water department's budget. For a little bit of background prior to serious establishment the seven communications staff in this department were embedded in five different departments and provided outreach support only for those five departments. From formation of this department created a centralized structure that supports outreach and public information needs spanning across the entire city. This restructuring has ensured we're better aligned with the council goals and priorities. It's also provided us a more comprehensive and cohesive approach to the city's communications to the community, and especially in times of crisis or disaster. Zero salaries have increased by $180,000 and incorporated in our salaries budget is staff time being charged out to other departments associated with the services that we're providing for certain projects. This includes for capital improvement projects transit water housing and homeless services. These charge outs reduce our overall budgeted salary in the department. After a full year of experience, our 21 22 proposed budget improves upon where we predicted our time to be spent from last year's budget. The current year has presented a very clear picture around our costs and for where service support has truly been dedicated. And this is in a year that's included the pandemic the glass fire and several other smaller emergencies that had significant impact significant impact on where our team has had to dedicate their time. COVID-19 has especially created a shift in our focus and priority areas for service for this team. Certain crop programs in the city stopped during the pandemic for some time and so we're not supporting and therefore charging out to those areas. We're instead focused on the public information work related to the pandemic and the health orders. We anticipate that a similar scenario for charge outs will continue into next fiscal year, even as we emerge from the pandemic we know the communications team is going to remain deeply involved in the recovery communications related to the pandemic. And which is time that won't necessarily be charged out to other departments. We also know the drought emergency PSPS events and fire season will likely to continue to impact where our team spends their time. Part of the salary budget increase also includes 10 $10,000 budgeted for overtime. And this 10 K was moved from our advertising budget to make this possible. PSPS weather events and other critical incidents require at times tremendous hours outside the normal work day for hourly FTE positions, and it's made it over time and necessary plan for this budget. Our benefits, let's see, our benefits increased to $127,000. This is direct correlation between our purse amounts going higher, and also our higher salaries and changes to our benefits of employees. A few other new or increased costs that you'll see in this year's budget are also a result of being new and building our department. This is the first year that seros included in it's cost allocation plan, which added an increase in nearly $57,000 to our budget from last year. Our utility expenses are also increasing as we added the cost of smartphones for all our members of the team to this year's budget. This is a critical tool for all of our team members to have for public information work and so that did increase those expenses by $16,000 from last year. The remaining costs that make up our department include professional services, which are enlisted to help support and supplement the department work that we do around graphic design. This includes the production of recreation departments activity guide, which is produced twice a year. We also have $14,380 in operational supplies, which includes our prints and copier services, our office supplies, and ongoing subscriptions to services that get in our team's daily work. This includes media management and monitoring tools and survey development service. And for miscellaneous line item, this is really comprised of our cost to implement outreach deliverables such as our printing advertising, postage and translation services needs. And that sums up the zero budget. I will turn it back to you mayor and the council for any questions. Great. Thank you so much to be have questions. Council Member Alvarez. Not really a question but a comment I just want to thank I got in the team for producing fires to for me personally to do outreach to my community. So I'm very grateful for that. Thank you very much. Thank you for that comment. We look forward to continuing to work with you this next fiscal year. All right. Thank you so much. Next up will be Amy Reeve and Amy's Director of Human Resources and she'll be presenting their proposed budget for 2021-22. Thank you. Good morning, Mayor and Council Members. I'm Amy Reeve, Director of Human Resources. And as Adrienne mentioned, we have a one page budget overview for the council this morning. And we have a minimal change here of 1.4%. Although we did attempt to decrease costs throughout our budget, we had a few items and initiatives that did result in a slight increase which include the labor negotiations budget that we're adding for this year. We also have executive recruitments and the diversity, equity and inclusion work that we're doing with C collaborative and with the new employee that was added to staff. It's pretty straightforward. Our salaries went up slightly and our benefits went up accordingly as well as others have said that's a result of the increase in salary costs related to merit increases and adding staff, as well as the corresponding purse costs. So I'm excited to answer any questions before turning it over to the risk management budget. Council Members, any questions? All right, let's keep moving. Good morning, Mayor and City Council Members. I'm Dominique Blankey. I'll be going over the risk management fund. This is an internal service fund, so it's not general funds. So these are allocated out to across all departments. And as you'll see, there are some significant increases looking at Purr's health, looking at liability insurance and the property and fire insurance. Overall, we were still able to kind of stay in line from 1920 actuals of a 7.1% increase. The reason why Purr's health is going up is they are trying to keep their highest cost plans from collapsing. You need so many members within a health care plan to make it actually suffice. So they have done price hikes of up to 51% on their lowest plans. Where our membership kind of lands in that is that roughly 16.9% increase that we're seeing there and those are where our safety lives for benefits. On the liability insurance, there's a there's multiple things happening with the liability insurance. So probably five years, six years ago, there was about 20 carriers in the market. Now there's only about three or four who are willing to underwrite California due to our high costs of our claims payouts. Our pool has seen higher settlements amount the past two to three years. The losses between now and our renewal, which is end of June 30th will also impact those rates. The projection that we were getting from the reinsurance market is that we're looking at a 56.4% increase compared to last fiscal year. Our premium roughly last year was I believe 1.2 and we're looking at this year at a 2.3. And that's also with the pool taking on additional pooled layer so instead of it being the 500,000 to a million we're looking on taking up to 2 million. So the pool is looking at a restructuring based off of the availability of the current insurance market. But again, I won't have that until finalized until our board meeting, which is later this week. Property and fire insurance due to the global pandemic with COVID-19 wildfire losses and hurricanes. It's been a difficult year for that market as well. So our significant increases is in cyber liability and pollution. Property insurance is expected to increase 40%. And again, not like scary with numbers, but even though let's say the cyber is looking at a 200% increase that will make the total premium for the pool is roughly 20,000 and our portion of that is roughly 20,000. So when I'm saying these different increases, some of them, they're just compacting with a different like pollution cyber so it's not, you know, millions of dollars that these are significant increases that are looking at moving forward. I think that about covers kind of the hardening of the market what's going on there and why we're seeing these significant increases on especially those three lines of the insurances. Are there any questions? Council members. All right, I'm not seeing any. Okay, thank you. I think we covered the detail here Amy and Dominic's presentation so we're moving on to information technology. So before we before we go to it I just wanted to ask some global questions Mr city manager. Mostly for you Amy. We've had the emphasis in the discussion around our equity work. And I just wanted to know how is that reflected in some of the changes in your budget. Is there some additional asks that the council should be considering, particularly as we start to look at our one time funding. Sure, thanks for that question. As the council is aware we did go ahead and contract with C collaborative this year. And so that funding is in our budget, and they are prepared to deliver three deliverables for the city related to equity plans for police fire and the city in the future as well. In addition, we did add one staff member to our HR team with that focus area. I expect that we will be coming in the future with additional requests for funding as we continue to develop plans and programs in this area. I think to answer the question further mayor I think specifically seed will be bringing forward recommendations that will have structural changes associated with them but also resource allocation changes and recent additional resource requests so that's going to be part of the deliverable that comes out of their work. And will the council see those three deliverables before the June 22. And will it be even just in draft form. No, because remember it's a year long process that we're under undertaking so they're going to come back in the summer and give you an update of where they're taking but it's it takes the final contract runs out next year and so the final deliverables will be tied up with those resource allocation requests. I understand it and I hope that we will continue to have that conversation when we have our one time funds discussion because I think from the interest that I've heard from council members. We would be want to set aside some of those one time funds for the actual implementation of these plans. And that's a sizable chunk of money that we can draw on to actually do something meaningful. Thank you very much. And thank you, Mr. McHenry. We have a question for Eric McHenry. Eric McHenry is unavailable at the moment, but he may join us shortly. So today the uncontrollable costs that we wanted to cover really are our software cost increases. We have about $114,000 in our what we call enterprise software, which is basically software packages that span one or more departments in many cases, all departments of the city. Things like ePermitt Hub, I think you heard when Ped presented theirs, there's some electronic plan review software that we are working on now. And then cybersecurity software, we've done a lot of increases in that area to increase our cybersecurity and with that it includes some cost increases. Microsoft licenses we use across the board, most all employees in the city have some form of Microsoft licenses. And that continues to increase. And then our zoom licenses for public meetings, as you know, online meetings and such. So our zoom licenses have increased overall that software budget for enterprise software is about 30 different third party packages, but those are some of the highlights on some of the ones that have gone up the most. So for on project costs, we have about $47,000 in increases for PC replacements. Most of you probably know that we implemented a PC replacement program several years ago now where all of the departments put in an annual amount to replace their PCs and laptops when they are no longer in service or available. And so this last year, there was an increase in particular, a lot of people working remote and so we had to procure some additional laptops for remote work, and the laptops are a little more expensive than the desktops. We also have a transfer of one FTE from the fire department. I know Jim Orange they also with fire talked about that some yesterday. But basically there was a technical application specialist in fire that was promoted leaving a vacancy there. And so what we in talking with fire we felt that that position would better serve the city if it was centralized out of it. And so working on fire technology activities but really working with the core IT group and so we're transferring that one position is that's about the next slide please. So our overall budget. The benefits piece really is the most of the change there is due to that transfer of that one position from fire, from fire into it. The professional services of the 2.2 million for the upcoming year, about 1.8 million is for enterprise software that I just spoke of about 30 different third party packages. So we also do a lot of in house development where we can for software as well we probably have a different applications that we support in house but these other ones are third party applications. So just looking through these other ones we have a line item for information technology which might be interesting why does it have IT line item. But that's specifically for PC replacement within the IT department itself so we are also part of the PC replacement program and that's the cost for that. And then we have CIP and on M projects that is really reflected mostly heavily of the peg funds the public education and government funds that we use to help you do things like building out city council and and being able to stream public meetings and and such a big part of it's that and then a lot of it's a network infrastructure and internal infrastructure to run the city's information technology. So the unfunded additional needs request really we have to this year. One is a 5000 to upgrade our current existing laser fish records management system to make it what the state of California requires to be turned a trusted system which ultimately is a system there's a lot of factors that go into it but ultimately a system that records basically would be virtually impossible to change a record. By being able to do this we would be able to destroy our paper documents and so we have thousands of paper documents still over the years that are in storage different departments are paying individual storage fees for it it's difficult to retrieve those documents oftentimes what we'd like to do is upgrade the existing system to make it trusted system which would really accomplish two things one we'd be able to destroy paper documents and to we'd be able to as part of digitizing those records we'd be able to make them more available to the public. So that's that project and then we do have a needs request for one FTE for media services technician right now we currently have one FTE plus a couple of temporary positions that do things like steer the cameras in the council chambers, but the media has seen a significant increase in public meetings over the last year, both from boards and commissions and, and other public meetings that we need to stream. And there's the complexity of being able to do that and many cases it's also at remote locations. Some of the things coming up to as we expect to need to do this simultaneously say at UFO from our UFO facility as well as the council chambers. And we really need a position to be able to help support that as well as support the officials with getting their logins getting their PCs set up and and being able to get online and and trained and so forth so that's really something that we're looking to try to improve there. And those are the three slides we have are there any questions. Council members any questions. Brian I did have one and I know Mr McKenry knows it's been a particular interest of mine. I've been sending him articles of security within local government systems that keep getting hacked and then jurisdictions are then blackmailed for access back to their services. I'm just, I see a little bit of an increase in some of our support around that issue. I'm just wondering what it does it feel like it has the resources that it needs to be prepared to prevent something like that from happening, or how are you preparing for that. Actually, Mr McKenry just joined us all at him. Yeah, thank you. Mayor Rogers. Yeah, we do routine testing for our cybersecurity vulnerabilities throughout the year. We also are a little bit with the police department other organizations FBI were generally made aware of ongoing or upcoming threats, and we take the best measures we can. One of these situations, the most important thing is to have a strong backups, which help us recover early options for ransomware attacks, much like what happened to the water distribution. Sorry, the pipeline distribution, but we also do a good job with our backups and cybersecurity training. So we believe we're relatively well prepared. I will say, though, that the extent of the recent attack was something that the US really has not seen before, and it really concerns us. So I believe we're about as well prepared as a city our size candy, but it's definitely a concern to all of us in this space about what might happen in the future. All right, thank you and then obviously as we know more if we need additional resources to be able to combat something like that I look forward to having that discussion. I think that I just want to add one more thing is so it's part of an audit of our cyber security insurance. Right now, the auditor, who are strongly versed in cybersecurity awareness and threats prevent the ask of three pages worth of question to make sure that we understand where we are vulnerable in our assets and data protection and you know privacy and things like that. So yeah, no, we're very worried and we're being strong attention to it. Great. Thank you. And then perhaps a question down the road. We have later in the presentation a discussion for non departmental broadband. And so if you could just be available in case I have some questions once we get to that discussion point for you as well. Of course. Right. So, thank you. Now I will turn it over to Jan for the finance department and non departmental. Good morning, Mayor Rogers City Council members. I'm Jen mzik chief financial officer. And just a little bit about the finance department before we get started. We've got 90 full time equivalents. And in addition to the general financial management of the city of Santa Rosa. We also provide services related to water parking and purchasing if we can go to the next slide please. In the big scheme of things, our budget is completely flat year over year for the next year relative to this, notwithstanding that there are some changes on in certain line items. One of the big changes that significant percentage increase is in professional services. I mean, that's the category that involves really the cost of doing business on behalf of the city. Tax administration, report writing, business license tax audit and services and some consulting services. And I think other than that, it's pretty flat and not much there for discussion in. In it or it costs are somewhat down this year were a big user of it obviously, but our costs in that category are relatively down next slide please. The biggest change here is in terms of the parking district fund. We have some capital improvements. We'll be talking about that a little bit later in the presentation. I don't really have much else to add. And at this point, if there are no questions, Shelly Riley will deliver the non-departmental budget. Councilor, are there any questions? Okay. Thank you. Good morning. This is Shelly Riley. I will be introducing the non-departmental slides. Just to give some background on non-departmental, these are all expenditures that are not specific to any city department. Included in this budget are the cost for the animal shelter, the Sonoma County administration fee for the collection of property taxes, the Sonoma County transportation authority costs, the general fund portion of the liability property and fire insurance, any costs related to the general fund employees' retirements or separation from the city, contract costs for the local agency formation commission and annual revenue automate, and as well as the offset for the general fund administrative cost plan. And as the cost plan you've seen running through all the non-administrative departments, this charges a credit in the non-departmental because it is a net zero across the entire general fund. And then lastly, we have debt service payments that are the non-general portion. So as far as uncontrollable costs, again, the risk management talked about the general fund portion of liability and property insurance. There was a 30% increase, $525,000 higher than last year on the general fund side. And as well as we have increased costs for employee separation, whenever there is an increase to employees' salaries, this cost goes up. But this is also slightly offset because we are not budgeting for a cost of living adjustment for next year as all the unions are still in negotiations. So next slide. Again, this is the general fund portion. You can see the credit went from about $4 million last year to $6 million. Although we do obviously have expenditures running through these, this is an overall credit balance. So for salaries decreased by about $1 million, again due to the cost of living not being taken into account, benefits went out by about $10,000 to $25,000. This is benefits that we pay for retired employees that CalPERS requires us to make additional payments. Professional services increased by about $155,000 due to a request for about $200,000 for the broadband, as well as there are other things running through professional services. For instance, the animal shelter and the contract services. The other huge change that we had was with the ONM projects. As you'll remember, last year council decided to move the police budget back to baseline. So the extra funds were moved here and this year, those are now reflected in the police department's budget for the mental health collaborative. Next slide. So once again, here's the $2,000 for broadband that can be paid for with possible ARCA funding. Next. So this chart includes a general fund portion as well as the debt service portions of the non-departmental budget. As you can see the pension obligation in courthouse square leases had slightly lower payments this year. Those are all based on the debt schedule as well as the fire station capital lease. The other thing is that there are two more funds for the non-departmental budget for the mental health community. Which was flat. This one I should point out is paid for by a measure L. And with that, if you have any questions, I could take them now or possibly Eric, Kenry can take them if they're about broadband. All right. Thank you so much. That is my first question is really that slide doesn't really tell us too much about what the citywide broadband is. So I'm not, Jan, did you want to take that? Sure. So, Mayor Rogers, that's a good question. Actually, it would be on behalf of the city, the citywide project. And we've been having discussion with the with the TPW or the assistant city manager Jason that as well as it about possibly using extended, well, let me say this, about possibly extending broadband into certain parts of the community that, you know, may at this point be underserved in that regard. And so that's where the conversation came from. One of the things that is within I think the ARPA funding scope, which I didn't really want to, because we're going to come back and talk about one-time costs. But that's where you're seeing parts of this budget. Just getting them places where they need to be. The proposal regarding broadband would be just managed out of non-departmental. So that's the cost for hiring a consultant to do that solicitation for possible providers. Should we get there? So I think the referral remember the rescue act dollars is coming in two tranches. And right now, as an organization, there are a lot of questions we can't answer about the expansion. This first phase would be to develop a plan to in the second phase potentially have the plan set in motion so that you could fund actual construction. So right now we don't have a plan about broadband. The attempt here is to develop that plan. And then that could be a potential funding for a second series, which is one of the highlights of the rescue plan. So we'd be looking at as the CFO said, be looking strategically at areas of the community and we would bring that forward for council consideration. But in absence of a plan, we don't really have something to apply the funding to. And the funding has a tight time turnaround, right? So those are the, this is a strategy would be asking council to consider funding this with ARPA money so that we could get the plan in place. And then potentially do that investment in phase two of the American rescue act. So that's the strategy. Okay. I guess I'm just a little bit confused Mr. same manager because I'm wondering where this fits in with the council's priorities. Because we've loosely talked about broadband. It's, it's been brought up a number of times, but it doesn't seem to fit within the council's top priority. And that's, and that's that maybe what the council decision is there's been a lot of communication about access supporting access and equity within the community supporting this type of endeavor as an economic development tool. We're not saying we're proposing it. It would be part of the one time conversation it is not funded it's only funded is if you would make that choice and so that's simply what it is, is a point of discussion we can't meet. So one of the, one of the highlights of in one of the, one of the, the, the, the things that they're pointing out in rescue act dollars is you could fund broadband investment. Since we don't have a plan to do that, you're not going to be able to take that particular particular aggressive posture. So we wanted to give council the option to consider, do you want us to go here, it would be part of the one time conversation but we would need the plan before we could do the actual investment. So you're right, it's not on the list, but it is a high priority coming out of the rescue act directive. Okay, and I can appreciate that and I can see how it does touch on some of the other issues such as equity and economic development that that makes sense I just want to make sure we're really clear with the limited funds what what's going to do a study and what's going to do the implementation. And so I look forward to learning more as we would need this study prior to doing the implementation. We just were tagging that for your consideration. Great. Thank you. Vice mayor you had your hand up. I think it's going to go on the equity piece. As far as us wanting to have more equity within our city this would be a way to to do that so if it's not. It is our priority. It is one of our priorities but it was not written down, I guess you could say, as it is being presented to us but equity is definitely one of our priorities. Okay, thank you. Any other questions council council member Alvarez. Not to mention it would be great addition to a library and the outreach they can do. That's also noted. I just just to jump off of that you've also heard in the past how expanding our broadband might actually help our resiliency efforts in in safety for the community so they're there. I think there's some multifaceted. We just don't have the plan in place right now so I wanted we wanted to manage expectation that you could do the planning with these dollars. Yeah, no I completely understand Mr. City Manager, the information that was provided to the council and the public was a blank slide with a dollar amount so I just want to make sure we're very clear with what these dollars are intended for. Yeah, I'm going to just tag on to that and in case staff is looking to count to four people who want to be very clear about wanting what you all are talking about. Thank you. Okay, let's go on to the next part. The next part will be the enterprise funds and Kim and a dough will kick us off with what will flip to these these are the funds that will be reviewed today and can we'll be starting with the parking. Welcome aboard. Good morning, Mayor Rogers and council members Kim NATO parking manager. I'll be presenting the budget for the parking enterprise fund for background. As an enterprise fund the parking program is designed to be self sustaining generating sufficient revenues from parking user fees to pay for operations and maintenance of the parking facilities and CIP projects to extend their useful life. I think we didn't jump ahead a couple slides here. Great, thanks. This slide provides a summary of the proposed parking fund budget for the upcoming fiscal year revenues and transfers in are projected to come very close to covering operations and maintenance costs. The transfer in is from the general fund to reimburse the parking fund for the cost of providing parking enforcement services, and the parking citation revenue that is generated is recorded in the general fund. The bulk of the use of parking fund reserves is for capital improvement projects for repairs to the fifth street and the seventh street garages. That's shown on the CIP expenditure line of 1.2 million. The transfers out are for $150,000 excuse me $115,000 contribution from the parking fund to the downtown community benefit district and $5700 to the water department for city works integration costs for parking. That is the new asset management plan that the city is implementing. The total drawdown from the parking fund available balance for the upcoming fiscal year is estimated to be just under $1.7 million. Next slide please. For the current fiscal year the parking fund is estimated to see revenue reductions of about 50% or $2.8 million due to impacts related to COVID and temporary waivers of parking fees to support downtown during the shelter in place restrictions. A $1.1 million drawdown of parking fund reserves is estimated for this year with an estimated fund balance on June 30th 2021 of $7 million. Funding has been allocated in previous years for several ongoing CIP projects including garage repairs, elevator modernization and replacement of the garage access and revenue control equipment, all of which are underway at this time. Next slide please. The outlook for next year is improving with revenues projected at 75% of pre COVID levels, expenditures are expected to exceed revenues by $1.7 million largely due to CIP projects as I mentioned earlier we've got to garage repair projects proposed in this budget, along with the transfers out for the community benefit district and we're estimating about a $331,000 LNM deficit. The parking fund reserve balance is projected to be $5.3 million on June 30th of 2022. Next slide please please. For the upcoming budget year, parking is eliminating 1.5 vacant full-time equivalent positions including a full-time senior administrative assistant and a part-time parking operations coordinator. This continues parking's ongoing efforts to control costs and seek operational efficiencies. Next slide please. This slide is reviewing the parking fund capital improvement program. The left column shows projects that have been previously budgeted in prior fiscal years and also includes the $1.2 million for garage repairs proposed for this upcoming budget. The right hand column shows future CIP projects that have been identified through facility assessments to be completed in the next 10 years. The parking fund reserve balance will need to be replenished in coming years in order to fund these projects as we are seeing the reserves dipping down to $7 million at the end of this year and $5.3 million as of June 30th, 2022. Next slide please. So regarding one-time funding, the parking fund has experienced significant impacts due to COVID, including reduced parking volumes that we associate with employees working from home and reduced capacity at retail and restaurant establishments drawing fewer people downtown and that the temporary reduction and waiver of some parking fees. So these have resulted in a combined revenue reduction of about $4 million for fiscal year 1920 and 2021 with another $2 million estimated for fiscal year 2021-22. Fortunately, the parking program had been experiencing robust growth before COVID and had a healthy fund balance that has allowed parking to weather these challenging times. An extension of the current garage parking reduction fees, which are set to expire on June 30th, 2021, if those were extended to the end of this year to December, would create additional revenue reductions of about $60,000 a month or $360,000 to the parking fund. This reduction would be greater if parking volumes recover more quickly. American Rescue Plan funds could be considered to backfill these COVID-related revenue reduction fees, excuse me, revenue reductions to the parking fund. We are seeing an increase in parking activity since the easing of restrictions in late February and expect full recovery to pre-COVID levels by fiscal year 2022-23. And that's the final slide that I have and I'm happy to answer any questions that you may have. All right, let's start with Council Member Sawyer. Thank you, Myron. Thank you, Cam. I appreciate the challenges of operating a parking program inside a city where parking is always such an issue. I have a curiosity question about the elevators. What constitutes an upgrade of an elevator as opposed to a full-on replacement or repair? Well, we're replacing the components of the elevator, not the whole entire system. So I believe that would be why it's termed a modernization and not an entire replacement. I'd have to get back to you on more specifics and talk to our engineer for more specifics on that. That's okay. I think you pretty much answered the question. It's just a curiosity. The word upgrade made me wonder, what does that mean? So thank you. Madam Vice Mayor. So hi, Cam. Thank you. I just wanted to tell you again, and I believe you received my message that a lot of people don't really like parking or parking tickets or anything associated with it. But when you have such great staff as you do, and I was able to interact with a gentleman on a Saturday and he had a smile while he was passing out tickets, but was also very nice and friendly to the public. I think that that makes it a little bit more bearable in order to have the tickets and things being passed out. So I just wanted to thank you for having such a such an awesome, awesome staff. Thank you. I really appreciate that as does my team and I agree with you. They're doing a great job in some tough times. Any other questions for staff? All right. Thank you so much, Director. Next up we have the Bennett Valley golf course enterprise and Jen Santos will be presented. Good morning, Mayor, Vice Mayor, Council, members of the Council and Jen Santos, Deputy Director for Parks, and I'll be presenting the Bennett Valley golf course enterprise. Let's go to the next slide. So this is just basically a recap, not new information, but we wanted to give you a big recap before we get started. So last year we did have a closure of the golf course and the restaurant for about 48 days due to COVID health restrictions. And once the health restrictions lifted, we were able to get back to golf and it resumed and really began to thrive. It was one activity that could be done during the restrictions and it's been it's been a great success so far getting back to golf. The current operators agreement will expire next year on July 1 and the operator is not seeking renewal. And for the restaurant legends based their model for revenue from banquet services. And when the county health order restrictions regarding indoor gatherings really didn't allow for banquets. It was put a huge financial strain on the ability of restaurant to earn income. And so while they did provide some food services for a while, the banquet services were fully closed and ultimately the restaurant closed in winter of 2020. Their last date was December 8 of 2020 and it remains closed course. Next slide please. And so this just reminder it's remain closed right now until a permanent operator or alternative operator is available. And what we did in replace of that as a temporary stop measure is to provide food truck and food vendor services. We started that on April 16 and it worked really it's working really well. And the staff are considering running into the weekdays to expand the services because it is it is working very well. So we're glad to be able to provide that food and beverage as a temporary service. There's no cost to the city. With that either. So next slide. And with this slide, rather than going into a bunch of super fine details, we just wanted to give you the idea over the last few years. On the left hand column is the monthly income for revenue. This is the revenue trends year over year. And on the bottom you see starting July on the left and ending June, a full fiscal year. And so this trend that you see here is is really common over the last like 10 years. We see a reduction in revenue as we go into the winter months and a rise in revenue as we come back out into the summer months it's it's really common there's some ups and downs when we have fires and smoke. There's a lot going on but otherwise this is this is generally a trend that has been steady even through COVID and fires and things like that. Next slide. So what we wanted to do before we jump into proposed budget is look at where we're at right now. And the current enterprise revenue is higher than a typical average. So we're looking at the average we would have whether we have restaurant and golf or just golf so we're doing much better than we usually do with golf this year. And it's making up the difference for the most part between having the restaurant there or not. We expect to earn about $394,000 in revenue this year so that's pretty high considering that's what we that's a typical average for both restaurant and golf and so this is just golf. However as in all the previous years the revenue we earn from all of our sources which is the golf the restaurant before and our cell tower leases does not cover all the debt services we have with O&M and debt service together. So therefore we anticipate that we'll need to use about $103,000 this year from the reserves as we roll into next year. I also wanted to mention that we did start the purchase of or we did complete the purchase of new golf equipment to upgrade the equipment for mowing it has lots of attachments it's a really fantastic new system for mowing and doing a variety of chores to maintain the golf course. Next slide please. So when we look at our projected budget as we roll into this next fiscal year 21-22, we anticipate the same we anticipate the same revenue $394,000. And we anticipate very similar O&M expenditures of around $81,000. And the transfers out is our debt. Essentially we have our non-taxable debt service for the upgrade of the two buildings at the golf course in 2005. We also have repayment of the park development impact fees all three of those the tax the taxable debt the non-taxable debt and the park development impact fees total $455,000 a year. And so when you combine the O&M expenditures with the debt the transfers out and you subtract what we anticipate to earn in revenue we anticipate next year to use the $143,000 from the reserves as we roll into next year. And so let's go to the next slide is a different way of looking at it. And so this is just kind of a written version of what you just saw in a different way. So again we project $394,000 in revenue. This is assuming we don't make any changes with the restaurant in the next year and add to that revenue. And again we estimate ending the fiscal year with expenditures exceeding revenues and therefore we'll need to use $143,000 of the reserves. We do not anticipate budgeting for any new capital projects. We have existing capital projects which we'll go over. We anticipate the same O&M expenditures are very close to that. And of course our annual debt service is pretty close to the same every year. So therefore by the time you get to next year by June 30th 2022 we still that's that number again we anticipate to use $143,000 and $10 from that. And so let's look at the reserves and the next slide. And so we wanted to put the slide in here so we could look at what what is happening from a reserve perspective as we roll into the end of this year we'll have $581,000 and $191,000 in reserves. We anticipate around 103450 to be used of that. And then we also project that by next year we'll be using another $143,000 as we roll into the next budget season, which would leave us with a projected reserve of $334,000. So we're looking for one added in there but essentially $330,000 this time next year. The reserve policy requirement at that time will be a requirement to have $240,000 and $642 in the reserves. So we're looking okay it's very tight. But all things considered if we don't have any major changes. This is what we should expect to see this time next year. Next slide please. And so I think this is the first time we're presenting this information from what I could tell from previous information but I want to start at the very bottom of the slide. Estimated capital funds available as of this year that those are the $1 and $2 capital improvement fees added on to the golf fee, every time somebody golfs. So we're looking for that fee back in I think 2017, and this is collected every year. And we have a total of $315,000 $664. We haven't spent any money from that today and I'll explain why. So on the left you have our existing capital funds that I talked about earlier. We have an irrigation systems repair line item with $117,000 in it, and we have a tree planting and maintenance project with $80,000 in it. We do anticipate to use a significant amount of those as we roll into next year if any of you have been to the golf course. I counted at least five new additional trees that need to come out on my last visit. We do anticipate to use some loss of trees. And so it does it is costly to take those trees out and we do anticipate at least half of that, if not all of it will be spent into this next fiscal year to remove the trees and remove the log that is created afterwards as well. So the irrigation system repair at $117,000. We have an irrigation system that's over 50 years old. And so we are starting to see significant problems with the irrigation system and whole manifolds needing to be replaced which is expensive and run $12,000 every time we have to do that so we want to leave that available. So as as we need it we can go and use that to either proactively upgrade or have it available as needed. It's certainly not enough funds to replace all of those if they broke it once but it's there and available and we do use it for those repairs as needed to keep the system operational. The other thing that we wanted to talk about was, while we know we have $315,000 in the funds collected for the golf fees we also have under $97,000 in existing funded projects. We know there's a significant need going forward. And so, just to go through those quickly the irrigation replacement is estimated we estimate to be about two and a half million dollars to replace the irrigation system. The irrigation system is a future well right now the water, the way we collect water right now is not sufficient to really get us through the next 50 years of this golf course. And so we need to have water storage so that we can and pump the water out store it in a well and start in a tank and pump it into an irrigation system so half a million dollars is also in that fee for that future potential well. We also know that the water department is interested in putting groundwater well at this site and they're starting investigating studies into that. And so we would have the opportunity to join forces and utilize their services for an enhanced and deeper well at the site and could also therefore so that $500,000 is for our portion of connecting to that future water system. It's not available in any of the funds you see here necessarily but we anticipate that coming forward. In an initial study of the golf course we have at least $60,000 worth of upgrades to for the pathways and cart paths to make them ADA compliant this is not an exhaustive study of the needs of the golf course but that's a first pass over it. We also have some drainage and just basic landscaping needs that need to happen at the golf course. We if any of you have been to the golf course we you know what it does right out there it is pure clay. So it really does collect water and holds water until it can run off and drain into the local creeks. So there's some need for some updates there and also some landscaping improvements if you've been to the pro shop is see that landscaping across from the pro shop has is in need of some design and retrofit it's it's it's a bit of a mess right now so there's anticipated funds needed for that and an analysis of the restaurant upgrades. These are not aesthetic updates this is not changing how it looks this is just getting it to open the door or about $242,000. We can go in and open it right now but there are some some problems with that and so this these funds would address those problems that we have in the restaurant. And so as we roll forward we'll be having these discussions. We're fortunate to have the ad hoc so that we can have these discussions about how to strategize about using the little bit of funds we do have. And how do we use that moving forward knowing that we're going to have a new operator starting next year. So there's a lot of moving parts right now. And we really want to be able to have the discussion about the best and highest use of the funds we have, rather than diving into something that can hold be held off and we can use this money for potentially, potentially combining to get the well services that we need. So that's a lot of information I'll turn it back over to the mayor. If you have any questions. Council Member Alvarez. Thank you Jim appreciate the report and it was great to walk the beautiful place with you not long ago. So I appreciate that very much in regards to the water usage. I know that just yesterday we did a resolution in regards to the to the voluntary 20% reduction. What practices of any are being implemented at the golf course to reduce the water usage. I appreciate that question and it's it's marrying something similar to what we're doing for our regular parks. We're just cutting back on some services, especially in the fairways where it's, it's less critical. And we certainly want to keep those putting greens that we have out there, and the teas green, but we can, we can tamper it back just a little bit. So that's what we're doing in the fairways but given that it's an outdated system. There is a limit to what we can do with the existing irrigation system but the landscaping areas and the fairways are really cutting back. Council Member Spendel. Thank you Mr Mayor thank you Jen for this information, very helpful. On slide 118 you have that golf enterprise year over year revenue trends. Is there any way we can separate what's the revenue trend for golf was revenue trend for restaurants and I know you said there was zero. Is this just a golf revenue trend, or is there any way we can separate those two. Certainly we can when we come back to the council we can show a separate year over year, but right now that you're seeing a combination of both, both revenue for both. That would be very helpful for me and then you also talked about having that food truck you said it's costing us nothing. Is it generating any revenue is not generating any revenue it's just mutually beneficial. We were able to find some golf, some food truck operators that were willing to come out and so not generating any revenue but we aren't spending anything here. Okay, and then you'd also mentioned with some of the capital costs. And you specifically mentioned the park development fees. Is that just repaying another part can you explain a little bit more about what you meant by the park development fees as a cost line item. Sure, absolutely. So initially when the golf course took the bonds out from bank to fund the updates in 2005, they also borrowed from park development impact the quadrant funds. And so this is a payback of that, borrowing of those funds. So it's about 63,000 dollars a year or so. But that's all city of Santa Rosa we can control the ebb and flow of those dollars in between the four funds for the park development fee. That's correct. Okay. And the last one additional question and so you said the ad hoc will be continued to meet so they will be talking next I know there had been when we first had this council discussion about potentially having a single operator for both the restaurant and the golf operator when the golf operator contract ends in June. Can you give us an update on the schedule that that in those discussions might occur. Sure, I mean, we, I'm not exactly sure of the schedule but what we plan to do is have a discussion about the next steps towards evaluating what kind of operators so that is pending those are the next conversations we're going to have because we're going to get that done right away. So we're having that discussion about whether to hire a consultant to help us understand what our best move is for next year, before we go out for the RFP to hire another operator, or whether we should be doing this on an internal level and having those discussions internally so that's going to happen sooner than later in the next month or two at the at the latest in all that's going through the ad hoc. And then we'll all come back to the council for final decisions but we're having conversations at the ad hoc level first. Yes. Thank you. Any other questions from council. Right to council will take a five minute break here. We'll come back we'll do the presentations for the transportation and water enterprise funds that will take a quick lunch, and then we'll finish up the day with our discussion around one time funds, as well as the citywide CIP program. And then we'll come back in five minutes. All right, Madam City Clerk, we ready to resume. Yes, we are. All right, let's go ahead and take the role really fast. Okay, Council Member Tibbetts. Council Member Schwedheim. Council Member Sawyer. Here. Council Member Fleming. Here. Council Member Alvarez. Present. Vice Mayor Rogers. Here. Council Member Schwedheim, have you joined us? Okay, let the record show that all council members are present with the exception of Council Member Schwedheim and Tibbetts. Great. Thank you so much. And Mr. City Manager, just as a reminder for the public, we will be taking public comment on our budget presentations once staff have a chance to finish presenting them. Thank you, Mr. Mayor. Next up is Rachel Eid, and she will be presenting the Transit Enterprise Fund. Thanks. Good morning, Mayor Rogers and member of the Council. I'm Rachel, members of the Council. I'm Rachel Eid, Deputy Director of Transportation and Public Works for the Transit Division, and I'm pleased to present our fiscal 2021 budget as well as some updates on our operational status. So if we can get the slides, please. Thank you, Mr. Mayor. I'll just continue talking while we're waiting. I'm not seeing slides. I don't know if I'm missing something, but just to provide a quick recap. Oh, great. Thanks. As you all know, the Transit Enterprise as well as our City Transit and Paratransit services have seen some significant impacts from the pandemic, both on the operational and on the revenue side. We did drop to about 25% of our pre-pandemic service level in April 2020 a year ago. We subsequently have restored service up to about 70% of pre-pandemic service hours. We do have 12 of our 14 routes operating. The two routes not operating are still being replaced by our call ahead demand responsive service. We still have five routes that are operating at some level of reduced weekday frequency that we hope to step up service again this summer as the economy reopens and we prepare for school to start in earnest in the fall. As you know, we restored fare collection on February 1st after having suspended fares for nearly a year, and currently we're about 45% of our pre-pandemic ridership level year over year. That is a 63% increase from last year, but we still have a long way to go to recover ridership. Next slide, please. So this is a quick chart that just illustrates where we are with ridership. As you see, we had the substantial drop-off in fiscal 1920, the brown line when the pandemic hit and we were in the heart of the deepest of the shelter-in-place orders. Since then, we've seen slow but continual increases in ridership. Even with going back to charging fares in February, we did not see a big ridership decrease. We did expect that, but we continue to see people continue to come back to transit slowly. I hope to see, as I mentioned, as the economy opens up further as we get ready for school in the fall to see another bigger step up in ridership in the next few months. Next slide, please. Before getting into our budget information, I just wanted to highlight the critical importance of the federal emergency relief that the transit enterprise has received. To date, we've received over $6 million in emergency relief from both the CARES Act and CRSSA. And to be clear, these are separate funding streams of CARES and CRSSA then come to the city of Santa Rosa as a government entity. These are specific transit emergency relief funds that flow to public transit agencies through MTC in the Bay Area region. So in our fiscal 19-20 budget, we programmed about $2.5 million of CARES Act funds. In the current year, we have about $2 million in combined CARES and CRSSA funds. And we are anticipating additional ARPA funds that are still going through an MTC distribution process, but we hope to have the first tranche of those funds allocated in July. And we do expect that we will receive some additional ARPA funds, but a lot remains to be determined about that process. Next slide, please. So in terms of the outlook for the current year, we've been successful in reducing costs by about $1 million year-over-year. And I'll talk about that in a second. And we've also had the CARES and CRSSA funds to program to offset reductions in revenue for many of our revenue sources. The cost savings have been achieved primarily in the areas of staffing. We've had a hiring freeze. We're about 10 positions open at this point in time, though we are starting to pivot to begin to rehire bus operators so we can further expand service. Our reduced service levels have resulted in savings in fuel, maintenance, and overtime. And we've also had reduced costs in our paratransit contract, which is a large contract. As you know, that funds our entire paratransit operation. There's been significantly reduced demand for paratransit services during the pandemic. So there has been cost savings there as well. Between these cost savings and the federal emergency relief, the good news is we've been able to preserve our operating reserve. We have not had to dip into our reserve to this point. And we've been able to continue our annual capital set aside about $1.61 million. That's a critically important piece in our funding program to make sure that we continue to move forward out of the structural deficit that was identified back in 2017. So that we're staying on track in our capital program and are able to sustain our full O&M and capital program moving forward. Next slide, please. So for the outlook for 21-22, as you're all aware, sales tax-based revenues are actually doing pretty well in Sonoma County. And so that includes our State Transportation Development Act, or TDA funds, which make up about 40% of our operating budget. Measure M has shown good recovery. That's a smaller source for us at about 7% of our operating budget, but still very important. We are seeing revenues lag in a couple of areas. State transit assistance or STA is based on diesel taxes and that continues to be down, as well as our fare revenue, of course, after a year of fare suspension and lower ridership. We're just starting to get back on track with fare revenue collection. We are budgeting in this budget for increased expenditures because we know we need to further expand services. We need to get more frequency out there for our riders and get some of our suspended services back running. And we also know that paratransit demand should begin to recover as the pandemic eases. So we're hoping to be able to restore a minimum of 80% of our pre-pandemic service level. If additional ARPA funds come in, it could be higher than that. And we hope that it will be higher than that. But that's sort of a conservative estimate of where we can get to initially in the fiscal year with hopes that we'll be able to build beyond that. So this last bullet just illustrates that we are still relying on Chris and our anticipated ARPA funds to fill a revenue gap, but with the funds that we anticipate again in 21-22, we do not anticipate having to dip into our operating reserve. And we will be able to continue our annual capital set aside for our capital program fund. Next slide, please. This slide just illustrates the importance of that emergency relief. This is a summary of our major funding sources for transit operations. You'll see that sales tax to start is recovered the first blue bar. The sort of lime green portion of these bars represents the STA. We had a big bump in fiscal 18-19 with the passage of SB1 and additional funding allocated. But we've seen that really contract. And I think it's on track to expand again, but it's still reduced for 21-22, at least with the estimates we're working with. You'll also see the blue bar right above that lime green is fair revenue. You can see the significant impact on fair revenue there. It's typically about $1.5 million of our budget. So it's about 14% an important chunk. So we still are, in this coming fiscal 21-22, fairly reliant on the emergency funds to be able to continue and to sustain our existing service levels as well as grow them. So we're going to be watching the rest of our revenue sources very closely, as well as doing our best to advocate for ARPA funds so that we can, you know, continue to sustain increased operations into 22-23 and beyond. Next slide, please. So our proposed budget for 21-22 is about $3.9 million. This takes us back to a total that's equivalent to, say, 17-18 or 18-19. So it winds us back in time a little bit from our revenue standpoint. And just to note, this does anticipate about $1.1 million in ARPA funds that we feel fairly confident we'll be able to program in this budget. But this is, again, based on a total between ARPA and Chris about $2.5 million of emergency relief in this budget. Next slide, please. Just wanted to touch upon our reserves and our capital funds. So you have the whole picture. In fiscal 21-22, we do have $2.1 million programmed out of our capital fund. And just to sort of step back in time for a minute, as we entered the pandemic and we made our budget presentation last year, I mean, we indicated to the council, we're not doing any kind of nice to have capital projects right now or discretionary capital projects. We're really focusing on the fundamental projects we need to sustain our operations and continue on the path with some of council's priorities. So this $2.1 million includes the local match for our first four electric buses that are currently on order. It also includes the funding to complete the charging infrastructure upgrades here at MSCS. And then it also includes some things we just have to do like capital maintenance items such as replacing engines. This leaves us with our operating reserve of $2.1 million, as well as a match set aside for pending major grant applications we have out there where we've had to designate match. And these are for two grant applications the council has seen in the last few months are low and no emissions bus proposal to the federal government for more electric bus money, as well as the quick strike program application to MTC for funds to rehabilitate the roadbed. This leaves us with about $2.5 million in our capital fund based on current estimates. And on the next slide that I'll just put that in a little bit of context. Next slide please. So for our 10 year capital plan. This is this is again sort of the must have capital projects the fundamental capital activities we need to continue with, including vehicle replacement build out of phase two of our electrification infrastructure so so we have the charging infrastructure available as we continue to electrify our transit fleet. The facilities repairs the 1.1 million actually does include about $900,000 for the transit mall roadbed rehab if we are successful in getting the quick strike grant we applied for that will free up some money in our capital program and it's looking good so that's the good news, as well as ongoing capital maintenance activities and some smaller projects. So over the next before 2030 we need to bank about $18 million in TDA capital, that number might be reduced because we're continually continually applying for grant funds for all these activities and we're often somewhat successful and being able to leverage outside funds, but this just indicates that we need to really be continuing to make that capital set aside on an annual basis to build that TDA capital fund to accomplish these activities for the remainder of our 10 year plan. So with that I'll conclude and I'm happy to take any questions. Right. Councilor there any questions. Nice man. Hi, thank you for your presentation Rachel. So I just wanted to check in about a student free ridership and if that would be something that would need to be in the budget. If there would be a grant for that where are we with that. Yeah, so we have an item coming to council next month on June 8 that is a proposal to pilot youth free ridership for 18 months. And that is proposed to be funded with grant funds we already have their existing grants where we have funding for youth, youth fair subsidy. We've been able to sort of hold on to those funds because after not charging fares for a whole year, the funds have built up. And you know our thought was instead of just extending those funds out for longer, we could have a really high impact by piloting a program that we know the council has been interested in for some time so we are bringing that forward to council for consideration next month and those are the transportation fund for clean air grant funds. It would be reimbursed from that grant it wouldn't be affecting our own budget. Thank you. And then Rachel you mentioned the call ahead service. Yeah, are people utilizing that what lessons are we learning from it. It's a it's a fairly low utilization at this point in time we do have some folks who use it who I think find it really helpful. We need to retool that this this was a pandemic measure. It's not the best service design it's it's not the most responsive service design it is a call a day ahead type service. So as we get into the summer and we restart our short range transit plan process are able to engage with the council engage with the community. We want to look at those couple of service areas that are currently covered by that service and decide, you know how do we want to move forward is it more of a microtransit is it TNC based service we do think something that is a better fit for those areas I'm talking about you know fountain grow for example, where it is lower density and there's a lower transit demand but we do have people who really need the service. So what type of service is going to best meet the needs and be most responsive. So, so I would say what we have now is working okay for a pandemic scenario but it is not a long term solution and so we do plan to have additional engagement on that and evolve that service into something that is going to work better for those areas and hopefully be more attractive. Yeah, it's been one of my biggest question marks to as we talk about environmental policies and getting people into public transit, the call ahead service seems a little bit more convenient if people utilize it but are we seeing anybody actually partnering with their neighbors, or are these still single occupancy trips that are just displacing the routes that we're not running. There's more single occupancy trips you know someone who would have used the bus calling up the bus isn't there so we're providing that that ride so they can get there to their destination but it's at this point it's not a service design that really supports that shared ride type concept, but that's something that we certainly can build into our analysis and our program development and you know look forward to discussing more with Council about what that could look like. Thank you and then you mentioned that Fairbox Recovery was expected to be about 14% and I apologize if I just missed it has the governor continued to waive Fairbox Recovery requirements and if so are we anticipating at what point those will come back. Yes, there's been statutory relief from the state legislature for TDA Fairbox Recovery for the current year and next year. In discussions with MTC and and some of the other folks who are close to this issue. I think there is some thought that the TDA performance metric may evolve away from Fairbox Recovery to a different type of performance metric. Because there there have been a lot of issues there's a lot of desire to provide discounted and fair free transit throughout the state. And the TDA Fairbox Recovery requirement really inhibits that because we all have to demonstrate that Fairbox collection to receive our TDA funds. So I do think that is expected to evolve in a different direction but for the time being. We don't have to worry about our 20% TDA Fairbox Recovery. We need to build back our ridership get folks back on the bus get that revenue back in but we're not going to get dinged at this point in time because of that that requirement. Great. Thank you so much. Council any other questions. All right, thank you so much Rachel. Thank you. So I have the winner. Water enterprise funds and leading us off will be Jennifer Burke. Thank you. Good afternoon. Mayor Rogers and members of council. As city manager McLean mentioned, I'm here to present the water enterprise funds. I did want to take a moment just to specifically thank your board of public utilities. budget subcommittee three times we reviewed the budget with the full board in study session and then the board has reviewed and recommended the budget that's in front of you today. So we did ask a lot of work of the board and really appreciate their review and input. Looking at our budget for next fiscal year we are recognizing that we are in drought conditions. So we are projecting a reduction in revenue. We're projecting a 10% reduction in revenue due to reduction in water sales. You may ask well if we're asking the community to reduce water use by 20% why are we only projecting a 10% reduction in water sales in terms of how it impacts our budget and our revenue projections. Our revenue consists not only of usage or the usage component of our water rate but it also consists of a fixed component as well as other fees. So this reduction is commiserate with potentially a 20% reduction in customer water use. In addition if our revenue if we do sell less water we purchase less water so expenses will go down over time. We do have significant fund balance to cover our projected reduction in revenues and we are also projecting a very small reduction in our sewer revenue. Our sewer usage is much more stable. It's the indoor portion of the water usage and it is set by sewer cap and that really doesn't change much. So we're projecting a very slight decrease in water use and again we have fund balance to cover this. If we can go to the next slide please. We are also continuing to focus on making sure our customers receive assistance in relation to the COVID pandemic. We are continuing to follow very closely any possible funding assistance either from federal or state government. There are four different programs that we are following very closely to see if we can get assistance for our customers to help with the arrearages. We are continuing to follow and run reports to see where we are at. We are consistently remaining about that 1700 accounts which is very consistent with typical past due accounts that are 90 days or more in arrearages and we're continuing to work with those customers offering them payment plans. We're willing to do whatever we can to assist them. So just wanted to provide the council an update that we're continuing to follow this. We're continuing to look at all opportunities to assist our customers in relation to the pandemic. If we go to the next slide please. This is an overview of our water enterprise fund. The revenue for our water enterprise comes from water rates and fees as well as demand fees. As I mentioned earlier we are reducing the water revenue based on anticipated reduced water sales. We have also reduced expenditures slightly but as you can see our expenditures are exceeding revenues and we have more than enough fund balance to cover this incidence. If we go to the next slide on the wastewater fund again our wastewater enterprise is funded by waste water fees and charges as well as demand fees. Our revenue projection is down just slightly. As I mentioned sewer usage tends to be very, very stable. We are projecting a slight exceedance in our expenditures over our revenues and we also have significant fund balance to cover this on the wastewater enterprise. If we go to the next slide. This is our regional wastewater enterprise. As the council may recall this is paid for by our five partners in the regional system that includes the cities of Santa Rosa, Cotate, Runner Park, Sabastopol as well as the South Park County Sanitation District. In addition to working with the Board of Public Utilities we also met three times with our sub regional technical advisory committee or TACC and they also have unanimously recommended this budget. Santa Rosa's portion of this budget is paid for out of the wastewater fund. As you can see we have revenues projected and then we have our expenditures. You'll also see a rather large CIP expenditure that council may recall last year we conducted a $70 million bond sale for replacing our UB project out of the treatment plant and the $30 million of extra CIP funds you're seeing here are coming from the bond funds and we're expecting to spend that next fiscal year as we start construction on the UB project. If we go to the next slide this is the last of our enterprise funds and this is our stormwater enterprise fund. You saw the general fund portion earlier in study session that was yesterday. This is the enterprise portion. This comes from a calculated assessment that we charge to all parcels within Santa Rosa and so the revenue comes from that portion. You'll see that we have expenditures. We have a requirement to have 15% of our program budget for the stormwater program in a reserve account and we have a little over 40% in that reserve account so we are dipping into that reserve account to spend on some additional CIP projects in stormwater. That's the use of reserves that you see before you in this slide and if we go to the next slide that is our budget and I'm happy to answer any questions that the council may have. All right council members any questions? I'm not seeing any questions thank you so much director and thank you to the board of public utilities for their thorough vetting as I know that their committees are known for doing of the budget. Yes thank you so much. All right with that council I think we'll take a half hour lunch break here. Let's come back it let's call it 1240. We'll come back for our discussions on the one-time funds the city-wide CIP programs and then we'll do our public comment on the entire budget after that. All right madam city clerk let's go ahead and call the roll and resume our meeting. Okay council member tidbits. Council member Schwedhelm. Here. Council member Sawyer. Here. Council member Fleming. Here. Council member Alvarez. Present. Vice mayor Rogers. Present. Mayor Rogers. Here. Council member Sawyer. Here. At the record show that all council members are present with the exception of council member tidbits. All right go ahead Mr. City Manager. So next next is a review of the unprecedented one-time revenues that are occurring in for into the benefit of the city. This will be just touching on some of those issues as I said the long-term finance and audit committee on June 10th will be looking more in detail at these revenues and then on the July I believe 13th meeting study session will come back to council to receive direction especially as it relates around the American Rescue Act dollars and presenting on behalf of the city today is Deputy Chief Financial Officer Alan Alton. Thanks Sean. Mayor Rogers and members of the council so over next several slides like City Manager said I'll just give a brief overview of where we are in terms of one-time money and we will be going into greater detail in these especially on the uses in the upcoming long-term financial policy and audit subcommittee and the City Council in June and July respectively. So next slide please. So this graph shows the the rather unprecedented amount of of non-recurring revenue that we've received or will receive at the city about 244 million dollars worth as you can see that the FEMA PA is relative to the Tubbs fire and we those are projects that are continuing our recovery projects there we do have them split out between general fund and water and then we have all of the other sources of funding that we are attempting to get or have been allocated or have a commitment to be allocated from various other state and federal sources. I will say that of all these aside from the PG&E settlement funds there's restrictions on the use of the funds documentation and reporting requirements and they're all subject to audit. Next slide please. So the PG&E settlement funds 95 million dollars is what we have these funds have virtually no legal restrictions for their use so just to settle little contacts the city conducted three community meetings two in the areas that were heavily affected by the 2017 wildfires and then one citywide meeting those occurred in the fall of 2020 and then staff reported out about the community input for the use of those funds to the council and study session in November of 2020 and then we presented a prioritized list of projects to the council at a December 15 study session. The projects represented here show what those that received consensus the fund during the goal setting meetings in February. The funds for vegetation management and wildland resiliency and response were actually appropriated by council at its regular meeting in on April 30th and the other ones received commitments during that goal setting meeting. That leaves about 27 million dollars of funds non-committed so far by the council. Next slide please. So the slides here in I believe the next couple of slides represent a summary of projects and they've been discussed by the departments during their budget presentation so I'm really not going to go into any detail here we provided these slides as a summary and roll up for the council at this point. So next slide. So these are additional ones used from transportation and public works and I think we can move on to the next slide. So in addition to or one of the funding sources that we have from CDBG has to deal with COVID we were allocated 2.1 million dollars for COVID specific costs. These are we take a step back and just say that we try to be as strategic as possible with the use of different funding sources noting that we can't overlap and we try to use those and save the general fund for last in any of these funding programs that we go through so COVID is one that we are actively dealing with obviously the funds represented here are those that aren't covered through FEMA PA or at least that we are not applying to PA for they made more sense to go under the CDBG program as you can see that what we've done is we've taken the allocation amount and we've been able to program that out over a number of years until we've used up the full allocation of the funds next slide please. So another source of CDBG funds and these are specifically related to the Tubbs Fire are disaster recovery infrastructure and mitigation funds and we were just alerted in the last couple months that we are committed to be allocated 34 million dollars of those funds to separate programs total amount 34 million we are currently in the due diligence process what you see on the slide here are those pro projects that are eligible to be funded with that 34 million we are putting our primary focus on the fire station because we have no other funding source to be able to pay for that other than the other than the general fund so we are going through a process now with with each CD as they learn more about our projects they they there's a series of requests for information they want to understand exactly how we go about not only funding the project but then reporting out on those funds and all that it is a very extensive process it's likely that however when we get through that there will still be some amount of of of local match dollars that will come from the city so next slide now we get into our ARPA funds and this is extremely fluid and as we've mentioned a few times during these presentations that we are still unpacking the regulations that go along with ARPA funds and just to show how fluid this is when we when we did this slide we were still going with our original allocation amount that was estimated at 36.4 million the actual amount that we'll be receiving is 34.6 million based off of their latest numbers that they've given us and we actually received our first trotch today of 17.3 million dollars we are still analyzing the eligible uses and ineligible uses of the funds um as you can see here we've we've tried to lay out as we understand it uh based on the number of of of initial writings that came out some webinars that we're going to one that actually I'm missing right now to give this um but don't worry they're all pretty much saying the same things right now um essentially what they're looking to do is to focus on the negative impacts of COVID they have a focus on addressing underserved communities focusing on needs going forward you know so they have some very well known restrictions which is they can't be deposited into pension funds um one thing that I've noted in uh recently reviewing the statues that they can't be used for reserves or rainy day funds either which uh which is leads us still trying to understand how we can both be strategic in the use of funds but also to apply it to the way where we are not audited later or at least we negate our audit risk going forward so uh next slide please so what we have done is we've gone through and tried to assess the um the estimated losses of revenue through the pandemic um uh we think uh there's a specific calculation that needs to be used so what this is based off of our uh initial estimated or revenue losses not applying the formula that they're using this is just us looking at it and quite frankly that's because the formula uh came out after uh we had already done uh was prepared this slide so um but this gives you a good sense of where we are and the particular issues that were hit I will say that they are looking entity-wide in terms of revenue loss so we will need to try to figure out how that works but we're looking at about 4.5 million dollars of rec program revenue losses uh a significant hit to our uh hotel tax transient occupancy tax uh revenue um and parking violation revenue uh through through this process so next slide there were also some city-wide losses of revenue so the other uh amounts were specific to the general fund our parking fund as um Ms. Ngo stated earlier uh there were revenue losses uh there we also lost revenue through our tourism bia fund and next slide so what we are you know we are developing requests and we need to do that uh we need to start putting plans forward for the use of this and to begin our reporting um one of the reporting requirements of ARPA is to show our how we would use the funds obviously on a very preliminary basis but they want to see that um uh those initial uses and then we'll need to report out going forward so what we are looking to do is is uh trying to fully understand the regulations around ARPA uh as I said earlier we can eye toward providing uh flexible and strategic options for the use of the funds but to still avoid auto risk so and I believe that is the end of my slide I'm available for any questions should you have them all right council who wants to start all right Mr. City Manager so we have uh scheduled in June a discussion about the one time what type of feedback do you need from council members today of course there's just a previewing of that discussion this is a previewing as you see uh there's probably going to be some time sensitivity around making sure we get our responses together so we wanted to get in front of the long-term finance and auto committee and then we'll come back to council uh and get direction so that we can start addressing community need and organizational need as quickly as possible okay council members try to help me add a question uh yes and a request thank you Mr. Mayor um first of all on slide 143 identified the eight funding sources and you mentioned there's restrictions on eight of those funding sources all except the PG&E it would be very helpful for me and the members of the community I talked to if we had one sheet that kind of gave an outline as to what are the restrictions for each of those funding buckets would that be possible for us to get or for staff to compile whatever our working understanding is of each of those buckets of funding uh yeah and and some especially the federal ones they they kind of overlap so I think that we'll be able to but yeah we can we can put a summary sheet together okay that'd be very helpful and then um I've got to ask again now on slide 148 this is the first I've seen a new figure for fire station five first it was 15 million then 21 million and now today it's 23 million um it's hard for me I'm struggling with that as a council member and when I talk to members of the community they're expressing that same concern can you give me some information as to how that increased by two million from the last presentation when we received from the fire department prioritized resiliency and infrastructure projects with the cost estimate of 21 bucks and that was earlier this year so that's an excellent question uh Ellen would you like me to take us to explain it that would be awesome thank you excellent so uh council member Schwedholm the number is actually the same uh what it is is there was 21 million dollars of of need is what you saw on the prior slides we have approximately two million dollars worth of insurance funds uh that go towards that that's already in the city's um in the city's account and therefore there's no need there uh so the this is the total uh total cost to deliver including both soft and hard costs um the 21 million dollars you saw previously was just simply the the gapping I appreciate that again not having these conversations in the community is that number changes those are the figures that we're all remembering not the specific that you just shared so whatever consistent numbers we can have so this is the cost of it I would appreciate more consistency I certainly understand that council member we'll make sure we're better uh we're better prepared the next time all right Ellen if I can have you go to slide I think it was 144 great thank you so we front-loaded some of this funding specifically because we wanted these projects to move quickly I'm wondering one for the general fund reserves the 40 million how much of that is being proposed to be used this year so we would um our estimate it will end the year at about 12.9 million dollars of reserves at the end of this fiscal year which is about 7 percent when you factor in the budget the the fiscal year 22 budget you are now down to 1.8 million so those funds would just simply be used uh uh to to quite frankly balance the budget deficit and then we would need to figure out how we would uh um you know what would be the right process to uh put the remaining amount in there and I think what it what it could actually just be is that we uh unassigned 40 million of it and then that will that will take its place the the 95 million is assigned so we keep it out of our reserve calculations so this would just stay in the general fund it wouldn't move it just becomes released and a part of the actual general fund calculation so that's that's how we would go about doing it okay and then on the renewal enterprise district um madam city attorney I think there were some conversations around finalizing paperwork has that 10 billion been obligated to the red or are we still working through some of the legal components of that but we're still working through the term sheet um we are getting close and I uh believe that the it is planned to come back to council uh in July for final action and that will be a package that will include the loan agreement amendment to the jpa and a couple of other elements and that will come back to you as a package okay great thank you and then in terms of the vegetation management and wildland resiliency how much of that fund have we utilized so far and have we heard from fire and need for more funding to do that work so I'll take the first stab at this so we we did um take that those two items outside of the normal budget process so like I said they went to council at the end of April and we're appropriated and I believe they're currently using those funds now and the way that we did it is that they had a plan uh a five-year plan developed that would cost combining the two projects would cost a total of eight million so what we did was we we appropriated those into projects so that they could roll over and and we basically front loaded them the full cost of those programs at year one and they will continue to draw down those those those that eight million over that five-year process so uh uh so there you go I'll leave it at that so to make sure I understand go ahead Mr. City Manager so the the money was appropriated over a five-year period in in tranches in the current budget so it's you know you're seeing a five-year program that's been set aside year one was put in for immediate action we don't we it is very early on in the conversation so there's probably not at uh cost accounting but we're more than happy to bring back to council a regular report on expenditures against that particular fund but it is as as as Mr. Alton stated it's a over a five-year appropriation and I would say we can build a process to develop and report out specifically expenditures against those those funds and jim is here to provide further detail yes mayor rogers I just wanted to clarify we have spent zero of that eight million dollars because we're actually waiting for the budget revision to be approved so we can get it in the funding if you were to look right now it doesn't look like it's available so we cannot spend it it's simply a housekeeping issue that we're waiting for it to happen as soon as it does we will be able to then utilize the spending plan as we talked about but everything else is correct it's been appropriated it just officially it's not in the budget and until we see it in there we can't spend it I'm sorry jim I'm a little confused because the point of the council taking these items early was to appropriate it so that our fire department could use it in this year and preparation for our season we are now in that's agreed we're and and we are trying to get this pushed across the finish line so we can start spending it we're ready to go um we just haven't been able to I guess my question is what further direction do you need from council since the council has seen this multiple times and has said this is a priority it wants to allocate the funds there's no further direction required I was a jim uh I I'm not sure what this particular technical hand up but it will rectify I appreciate that thank you so much mr city manager thank you and then my my last question uh if you go back to your your slide alan that has all of the different funding uh yeah how does this impact our measure of baseline uh it particularly given that there's strings attached to much of this funding it does not it doesn't affect it these are uh uh all capital projects uh so they're off outside of the operating um the way that we have it especially if we're looking at one-time funding sources these would not have any impact on measure of baseline at least not for this budget okay great thank you uh madam vice mayor you have a question help me again so did you say that 12.9 million uh when we talk about the reserve so be 17 I mean seven percent will be left at the end of this budget year in the reserve yes that's what we're projecting out uh yes so essentially we set aside money to put in the reserves that we're spending any way because we're not really going to have 40 million dollars in the reserves that is correct that's why it was increased to from 30 million to 40 million because you need to start cutting um operational expenses and that's what's coming back in the in the in the budget cycle right now we're cutting another 3.5 we will roll up all the one-time additional expenditures and ongoing expenditures into the budget cycle but again council is going to need to really take this issue seriously and start to curtail ongoing expenditures the year you are hitting it right on the head vice mayor this is the recurring issue we're facing is is there needs to be a sizable reduction we have 3.5 million in staff's savings that we're already proposing the challenge for council in the upcoming year is going to be to identify another 1.5 we will roll up all the requested one-time and ongoing expenditures for the budget review and present the budget hearing and present the additional hits to the reserves but if council continues to overspend those spend more than it's taking in this will those 40 million dollars will become quickly depleted so this is you you are actually identifying one of the challenges within the organization is there's a great deal of need there's some one-time monies to offset it but ongoing revenues and ongoing expenses are not equaling out and again that's one of the big challenges we're facing so part of the reason the organization went in to make some reductions was exactly across the board to address these issues but that you have identified the fundamental issue that's ongoing within the budget is our reserves are getting depleted to pay for ongoing expenditures and that's why you started to see cuts this year you're going to be needing to make additional cuts in the upcoming year to meet that goal so I guess my my concern would be for my fellow council members is that fire season is like now longer and we have all these things and that I really thought the point of giving the 40 million for reserves is for us to have something to fall back on but it doesn't look like that is the case so we're saying that we have 27 million left of one-time monies I really don't feel like we have 27 million left because we've already spent more than half of what we said we were gonna put in the reserves so thank you council member alvarez thank you mayor on slide 148 with the 34 million with the seven matching funds and for clarification this is not a package deal just simply an itemized list of potential acceptable uses that which would be matched is that correct this is the list that of potential uses that we're discussing with the state that would be here the total match requirement for the projects listed is seven million dollars we're reviewing each project so we're in our due diligence phase but it's important to realize again there is going to be needed to be city contribution to get these projects across the finish line and so as was pointed out you do have some additional PG&E funds that are there although again as we if we continue to spend above our our revenue generation those funds will be completely depleted we would likely be coming back once we get clarity on what the match requirement for each of these are as it's an unfolding project we're likely coming back to ask for additional contribution from those PG&E funds to meet the goal here some of them are water related so some of those will be enterprise funds but we are working through there so it's seven million dollars a match it's not all general fund but it's going to be dependent on project to project and so we're just making you aware that these have a requirement associated with them to see them across the finish line and with the concern of the cost to the city whether it's for the general fund or or enterprise have we taken into account the staff hours and staff cost to produce the work needed to be able to qualify for the different matching funds I'm we we were committed to making these projects whole because we have to do the staff work to make it happen we're we are accruing some administrative costs against it again I'll turn it over to Assistant City Manager Nutt or Alan to fill in the detail there thank you sir Council Member Alvarez that's a great question eight of these projects are actually public assistance projects that are already being reimbursed by FEMA for those of you who recall the city's responsible for 6.25% of all of the original delivery costs for those to bring those projects to fruition and what the CDBG funds are doing is they're giving us the opportunity to reimburse for those local match dollars so Council Member this actually doesn't involve any additional effort other than the administrative component associated with processing the paperwork to conform with the state's requirements but for those eight projects it just simply is a reimbursement it keeps the city from having to pay directly and we can reimburse our costs or our share of that cost as soon as we're able to and that would include the administration fees as well that includes all costs associated all costs associated thank you sir any other questions from Council Council Member Sawyer thank you mayor I'm curious about staff prioritization on each of these where there are where there are more than two requests for instance in the transportation public well let's let's move out of there let's let's go to the CDBG the INF slide 148 for instance where they're there were mentioning the seven million dollar mashing funds was there an effort at any point to prioritize those bullets so to some extent yes through the course of the program that that the state put forward they did provide a series of criteria that we had to meet we pushed 13 projects forward with the idea of maximizing the amount of return to the city we had about 88 million dollars of unfunded of unfunded or projects that we identified for the state federal government these particular 11 projects were the ones that made it through the selection criteria we had a number of issues relating to low to moderate income households that the project might serve upon completion it talks about population and it talks about the severity of needing to restore or the or the priority of restoring so so these were the 11 that made it through not all 11 have to be funded we Jason let me let me stop you there just um what I'm looking at is on slide 148 yes so we're I don't I'm not seeing 11 projects so um I'm seeing nine nine projects um I'm just I just I know it doesn't really matter the number really doesn't matter I'm I guess what I'm when I look at this list and I see the I see fire station five and that's to my mind I'll just say it it's a pretty much a slam dunk for me uh to be taking um moneys for for fire station but when in the in the second bullet the laguna treatment plant flood wall it's really hard for me to know uh the importance of that when put up against storm drains citywide for instance now there's a lot there's a big difference in amount let's just go to two that are closer in amount uh storm storm drains citywide and then roads on the in the 3.7 roads signs and poles I'm not it's hard for me to know how you know where to prioritize those and and um you know that's that's it would it would help me uh to know the that there's a there's a condition basically a problem statement uh where uh there were a certain condition would would dictate a priority over another condition which would be um less important so it's hard for me to to to make a decision when I'm not sure about the the overall condition of the of the issues that are being raised in the in these particular bullet points so it's it's hard for me to make a decision barring that that prioritization um it's just it's a it's a statement it's just suggesting my the difficulty in making a decision in that case and I think um the subsequent council meet uh the long-term um policy and audit committee meeting as well as the meeting where we're going to come back to council on the 13th of July we'll be able to provide more detail for you um between the two programs not every not every one of the projects qualifies for for each of the two programs for example the cdbg mitigation fund only has three eligible projects to it it can only address or it can only fund the fire station five project the pavement rehab project and the flood wall project the pavement rehab project and the flood wall project are not eligible for the infrastructure part of money I like I say it's it's far more complicated and nuanced in the way that the state has assigned the city these funds and the projects were very specific to be able to ensure that we maximize the amount of money that was available and eligible for the city and I think we'll be able to get into that in that more detailed dive in the upcoming meetings and so I think it'll be more clear at that point I think this was really just to kind of give you a generalized indication of the type of funding that was there the type of eligible projects and the fact that they're in order to fully fund all of those projects there was a there was a gap of about seven million dollars okay thanks Jason that's that's actually very hopeful I look forward to the um the additional data when we before we make our decisions thank you council members what else hey mr. Mary uh this is for you Jason I'm sorry I didn't bring it up earlier we want to stop on the fire station on that same document that we had talked about it was either end of last year or earlier this year when our department listed the priorities it had the bill the hot emergency that's now a hot EOC 1.4 million can you share the discrepancy in those numbers from when we first received it today you're on you council member I'd like to defer to the fire department although I don't see the chief on the line we did make requests of our federal legislators for a million dollar program or a million dollar project and that was accepted by congressman Thompson in his recommended package and so the 1.4 I would need to defer to the fire department to bring the additional information is it the safest terms because I think chief west reminiscent of yesterday we are talking about reconfiguring an existing building on the msc footprint for this new hot EOC right that is correct and I see that chief Westrop was joined us and he can fill in the gaps thank you good afternoon everyone Scott Westrop fire chief for the city of Santa Rosa the answer to the question is that in the process of going through and looking what a hot EOC hot EOC build out would look like there were several different options put into place there was sort of there was four tiers and initially when we were direct we were headed down the direction of it being internally funded we went with sort of the middle of the road and that was the first number that you saw now that the the ear marking the federal the federal funding opportunity is rising we moved it up to the to the best option that we have as far as capacity and programs that we can run out of the hot EOC so that's been the change in the number is changing it to the sort of platinum version version versus sort of the silver version that we were running with when we thought it was going to be funded internally thank you for that chief I guess that my confusion is that both buckets of money we're still looking at PG&E settlement dollars are there some additional state or federal funds that would assist us versus just taking it out of the PG&E settlement funds which don't have any bearing to federal state additional funding sources so not for the fire station however for the EOC there is a federal earmark possibility for about the senate and the congress that we're looking at and we have support from congressperson Thompson at this point on federal earmarking the problem with that is it's it's extended out for a long time we probably won't know anything until fiscal year 2022 so so it'd be the next fiscal year that we would hear back on the earmarking but there is a possibility for the EOC to be funded out of earmarking but not the fire station so there's not another federal estate opportunity for the fire station right yeah i'm just interested in the EOC because i'm supportive of this effort just the numbers are increasing as we go so thank you and on a related note uh jason uh costs for everything have been escalating and going up but i know a number of these projects have been uh in progress for a number of years do these reflect the current expected dollar amounts or is the are these the estimates that we've had in place from budget cycle to budget cycle uh mayor these are snapshot and time at the time that we established the original cost estimate so okay costs are continuing to escalate as we take time in delivering them so for example the laguna treatment plant flood wall that one's been there for a number of years that's a cost estimate based on what we knew a couple of years ago so this was a cost estimate that was revised this last fall as they submitted a grant application to the federal government for hazard mitigation grant funds so i would say that's actually fairly recent fairly recent and i would feel comfortable with the 16.5 million at this point okay thank you councilor there any other questions okay we'll move on to our next segment i will also as we switch presenters do a quick announcement i know we have our cultural heritage board meeting that's scheduled for a little bit later this afternoon that will start after completion of the city council meeting so staff asked me to make sure that i announced that so next next step is the citywide capital improvement program uh 21 22 proposed budget and uh we have jason nut leading us off thank you uh thank you mr mcglenn i wanted to always provide you with this snapshot just to show you the types of facilities the city's responsible for we own approximately five billion dollars worth of assets whether it's roadways water and sewer lines parks open space the treatment plant facilities and assets and appurtenances that go with those such as traffic signals and and street lights it's important to realize that these are products that we've either built on our own uh or we've accepted through the course of development uh and take an ongoing and permanent responsibility for moving into the future um in the past i've come and done a presentation that talked about our ability or inability to be able to do on uh to be able to do preventative maintenance on a number of these facilities um therefore you see the you see what we're able to accomplish through the course of the capital improvement plan focused on these specific types of products next slide please our capital improvement program is um 91 actually i think you advanced one too many slides there we go uh so one of the questions we get is where is it that staff pulls these projects from and how do we how do we get to a place where the capital improvement program is being presented to council there are a number of places where we collect feedback whether it's conversations relating to the general plan or whether it's directed projects incorporated in the general plan the council goals as you develop your your work plan we get to develop projects associated with those work plan or as directed by the work plan we look at all of the master plans that are going through and we've had a number of them including the recent update to the bicycle pedestrian master plan the groundwater master plan the park's master plans that are constantly coming forward all of those are developing and identifying capital improvements necessary to fulfill the final vision uh within each of those plans and then of course we just recently completed the downtown specific plan that's a critical component to try to identify what additional investment needs to be made in the downtown to support the type of development and activities that we're looking for again the climate action plan is one that's becoming very important for us and a number of projects are starting to to be generated in an effort to try to achieve some of our climate action goals through the course of the year we all receive input whether it's council members whether it's department heads whether it's the city manager feedback is coming in from members of the public for our business community from residents requesting specific uh specific specific projects or identifying specific concerns each of those is taken in and and and vetted in one way or another to determine whether or not it's a capital project or whether it's an operational investment that's needed and so these are just the areas um where we pull these projects from and we do our evaluation in order to determine what gets invested in the capital improvement program for the fiscal year next slide so at this point in time for fiscal year 2021-22 we have about we're proposing to just under a 92 million dollar capital improvement program budget you can see from the pie chart the various ways that the the funding is coming in from a majority of these funding sources are restricted revenues meaning they can only be utilized for for specific purposes approximately 70 of this capital improvement program relates to the water and wastewater and sub regional enterprises and we'll go into a little bit of detail about what sort of projects are coming up with them we have about 18 percent that relates to the tpw special funds this is predominantly roadway paving projects and and other types of pavement restoration and treatments in an effort to keep our roadways in good condition we did learn earlier this week that of the tpw special projects a majority of those funds come from gas tax sp1 and measure m we did learn that the state provided us with the updated gas tax funds and it does appear that our projections were about were being adjusted about 900 000 lower than what we're showing on this slide between now and the june study session we will be readjusting the project list in an effort to accommodate what the state is telling us we should actually be receiving for this upcoming fiscal year the only piece that's discretionary within this large pie is that small portion of yellow down in the lower right corner and that's the tpw general fund proposal and we'll get to the specifics on the next slide but that is the one area where we could make a recommendation that that goes in a different direction than what staff has proposed at this point because it is flexible fundings it's general fund it gives us the opportunity to invest in other locations next slide so to stay on the discussion of what general fund looks like this is the general fund proposal for fiscal year 2021 as we've done for the last five years staff would uh how he's requesting $1.2 million to invest in ADA enhancements these ADA enhancements follow the course of the city's transition plan in an effort to bring all of our facilities up to current accessibility standards per the federal requirements we did have a number of projects slated to move last year because of the current because of the budget situation council made the very difficult decision to adjust that request and recover and move those funds back into the general fund reserve in order to stabilize the budget so we are looking to reinvest those $1.2 million for this upcoming year the rosin pavement maintenance is $662,000 as part of the rosin annexation agreement this is a $6.2 million total investment from the county to the city over the 10-year period and they give those funds to us in one in annual disbursements and we are moving forward with a number of projects in an effort to restore and reconstruct streets in the annexation area portion of rosalind in an effort to try to bring them as consistent or better than the rest of the city average and that is the plan we're moving forward with you'll be seeing a a recommendation here in the next few weeks to approve a contract to move forward with pavement preservation for rosalind this year we've got a great price and we're excited to see that project move forward this is the last year of the led streetlight program this council has spent a substantial amount of time investing in in doing great work to convert our streetlights for the benefit of energy reduction greenhouse gas emission reduction and cost reduction and this 600,000 is the last remaining portion needed in order to convert all remaining streetlights from high pressure sodium to led we're excited to finally bring this project to fruition the length of time it's taken us to go through this particular program has been fairly significant we're over a decade of investment strategy we're now needing to look at some of the initial investments and starting to replace some of those lights which is which is a really good testament to how valuable these streetlights are rather than being an 18 to 36 month life cycle we're now looking at a 12 to 18 year life cycle and it's a great it's a great investment and it's going to bear fruit for us into the future there are two public safety building projects one we're having a substantial amount of issues with the building's boiler they're heating and they're heating and air conditioning units we need to do some substantial improvements in and around the lines that are feeding those it's a $250,000 price tag for us to get that taken care of but it is critical that we move forward with that in order to keep that building operational into the future the other is the public safety building generator you've heard for the last three years since 2017 fire that the generator at the public safety building is on its last legs it's at a point where we are concerned about its longevity it is the original generator for that building site and it does need to be replaced public the police department was successful in receiving a Cal OES grant in the amount of $300,000 to move toward replacement of that generator the total cost is $575,000 and so we're asking for the $275,000 of general fund to match the Cal OES grant to bring that project to fruition to keep that building operational through the course of any disaster or event that would cut power to the facility last year we also talked about the Luther Burbank Coleman gardens roof this is a project that there was quite a bit of consternation about whether we needed to defer and delay that project council ultimately made the decision to defer that project we are bringing that one back because we do believe there's some time sensitivity in trying to get the design of this work done this particular line item is for the design and the idea is that we are working with a with an architect to help us develop a time period appropriate roofing material so that we can restore the building to its natural and historic glory this is not construction costs this is purely design costs an effort to identify develop and design that roofing product and then of course as we've done for the last three or four years we've requested about $50,000 to support some general fund projects at the lower levels ones that we just don't have a specific we don't have a specific budget for but it's important for our staff to be able to assist for example we'll get a request to make a minor modification within a building for cubicle spaces there's no project associated with that and therefore we put this fund out there so that our capital projects team can assist with the redesign of those spaces so that we can get that staff back into into their quarters next slide please we are also going to be looking at utilizing capital facilities fees these are fees that we received from development activity within the ordinance that established the capital facilities fee a certain percentage of those go directly to the fire department for the value and benefit of construction of new and replacement facilities what we do on an annual basis is we take the funds that are brought in during the course of the year and we delegate them to specific products or specific projects and for the most part these are holding accounts we are continuing to collect funds for fire station eight we are continuing to collect funds for the new fire station in southeast santa rosa which is typically known as fire station nine and then we're looking to continue to provide services and support for some of the improvements needing to be made in and around the temporary fire station at station five on parker hill road next slide please as miss nadoe told you earlier there are two projects coming forward in the parking enterprise that is repairs at garage one and garage three just wanted to provide you that little bit of additional detail about what those how that 1.24 million dollars was delegated between those two projects next slide one of the other areas that we receive funds from development from development impacts relates to parks and we do collect fees whenever a new development is is is completed we we collect park impact fees that go specifically to the zone with which it's identified the zones were created in in a fairly simple way we've got four zones 101 north south separates east and west and highway 12 east and west separates north and south so we now have a northeast northwest southeast and southwest quadrant so developments that occur in each of those quadrants put money toward future investments in park projects what you're seeing on here are funds that were collected during fiscal year 2021 that we now need to invest into this year's fiscal program if you go to the next slide please this shows you how we intend to invest those into each of the different zones this particular program and the way we do this doesn't specifically authorize projects per se what it does is it pushes those monies into the accounts per the ordinance and says that that money is available to then be allocated as those projects come available so for example if we are in the southwest zone zone 2 and we begin to look at making improvements in and around a place to play we would be coming back with a proposal and we'll be asking to take money out of the park impact fee program for zone 2 lucky enough this year we were successfully receiving a an open space grant in the amount of about a million dollars to help us further improvements in at a place to play and so you're going to be seeing something like that here in the very near future that allows us to begin to move forward with that investment strategy in that project and we'll be specifically specifying that those matching funds will come out of the southwest area in zone 2 you'll also see on this slide the measure m funds we received about 1.9 million dollars annually from measure m that's the parks for all measure not to be confused with the streets measure and so this is a funding source that comes in council in 2019 establish an expenditure plan for years one and years two they have not yet established a expenditure plan for years three through ten that is something the staff is actively working on what council had directed us to do is to go out to the community and do a series of community meetings to solicit feedback on how they wanted to see the city invest those funds park staff has done a fantastic job working with the community and intergovernmental relations staff to put on these meetings we've had a we've had I believe five meetings over the course of the last 12 months only one having been in in person because we did it the week before the pandemic closed down our public gatherings and the feedback has been phenomenal we've had a great response we are unfortunately not in a position to have already come to you with an expenditure plan proposal because of covid we had to delay all of those we all of those activities until this calendar year we have now completed the work but now we need to reduce all the data the information develop a proposal send that proposal to the board of community services make revisions as they've requested and then bring it to council for action that doesn't mean the funds aren't being aren't available for use it just means staff is being very cautious about about utilizing funds that don't have an expenditure plan approved by council and so we will be coming back to council very soon to get approval to begin using those funds in a proactive way moving forward next slide please let's take a little walk through Santa Rosa waters budgets for CIP if you go to the next slide the first to conversation will be about stormwater and creeks it's not a very large budget just done just over about nine hundred thousand dollars you'll see we spend a little bit on capital facilities fee storm drain and sewer we've got water enterprise and we've got the creek restoration fund this particular program helps us identify and improve a number of deficiencies around the city you'll see some of the examples that they've done in the slides and the images on the right next slide please the water enterprise is looking to invest about 13.8 million dollars a majority of the water enterprise is looking at linear projects meeting water mains and the reservoirs one of the projects that they're also doing is a well project like the leak well replacement that's one that they're going to be working on as a part of this particular budget next slide wastewater is also looking to invest just under 13 million dollars again there's their entire program is linear based meaning they're looking to do sewer trunks and sewer mains a couple of projects that are coming forward as part of this work is in the Sherwood forest area and the east haven and foothill area those projects will replace both water and sewer lines and will ultimately restore the pavement in those areas as the the type of work that we do when we do both water and sewers fairly disruptive and results in in pavement that needs to be put back into a fully restored fashion in a fully restored manner next slide please as director Burke mentioned we also manage the treatment plants with other agencies this is an area where we recently went out and received bond funds and we're investing about 30 million dollars of bond funds in an effort to do UV system replacements that is the big project here that's the primary focus and it is the area that we're spending quite a bit of time on in this fun area to bring that facility up to modern standards so that we can serve all of those communities into the future next slide and then i just want to give you a quick snapshot on the non on the non enterprise projects just to be able to describe in general terms what we're looking at doing next slide we're going to be investing about 25 million dollars on street capacity and pavement enhancements like the Fulton road widening project between Guernville road and Piner we're looking at investing in park and park amenities i mentioned that we're looking at projects such as place to play that will be coming forward we've got the streetlight project in there we're looking at rehabilitation we're also looking at making some investments in our bicycle and pedestrian programs it's a fairly comprehensive plan for our general fund style our public works oriented projects and we're excited to see those projects move forward there will be a book that will be coming your way council that will describe each and every one of the projects that's listed for that's listed in this presentation and with that that concludes the capital improvement program for fiscal year 21-22 and i'm happy to answer questions all right thanks jason we'll start with the vice mayor that was quick uh so jason are we looking at maybe going in the future having the zones breakout into districts and how hard would it be to do that well we have not contemplated that i i would need to do quite a bit of research to determine what would be necessary to make that shift but that's something if you if you would like we can come back and explain to you what that could look like moving forward um i i just it was just a thought um and then also the tpw uh specifically for the roads how do we make sure that that is equitable between um all the districts and that more funds aren't going to one versus another or i mean i i know like maybe one budget year chris might get everything but chris can't get everything every year you know we know how he likes to do it so yeah there are a number of ways of of dealing with equity throughout uh throughout the city um you know having worked with a county organization they certainly have a specific way where they try to delegate based on and based on the the number of of districts that that has not necessarily shown to be equitable uh for example in sonoma county you have one district that has almost no county roads you have another district that has um a thousand times as many roads but yet they're receiving nearly the same funds so there are that that is one way to consider um what we've done in in uh so far and what staff has been working hard to track is just to make sure that as we're looking to invest funds we're making our way around the city staff is committed to ensuring that we're equitable we have equitable distribution throughout throughout the city for example as we're coming to request sp1 funds sp1 funds will allow us to build one road a year as far as reconstruction and we're making sure that that that is not invested in any individual district two years in a row and so that that is being finding its way throughout town i can assure you we have more than enough um projects and challenges throughout the community that we do have projects in each and every district and we will be working hard to ensure a balanced and equitable deployment but i don't have a specific mechanism for you at this point uh vice mayor i will be working with uh uh gen gen masik uh the cfo to start to develop a plan that might help us be able to better capture and look at a programming mechanism that's more detailed and directive than what we have today so i i think it would be helpful uh vice mayor for for at some point in this in in the next couple months for um for mister not to come back and do a presentation about how we do and some of the restrictions associated with these with funding sources for example on park development we did we we did do some revision there but it's tied to development fees and where those development fees are generated so i think there's some really good questions here and i think it would be good to get a basis of what we do and have a study session exactly on that topic so that you all start to look at it and ask those specific questions about how we might incorporate other ways and i know i know jan and jason are actually talking about that looking at different criteria including we could be looking at things like the scorecard generated by by community engagement as a criteria for investment in our community so i think there are different ways to look at it but i think what would be really the best way to start is sort of what we do right and and then you could start to ask some strategic questions about that investment criteria so what i would recommend is sometime um in july or august that we schedule a study session specifically about how cip gets developed and how every year the investment strategy comes because i think that that would be a good basis to then step into the next conversation about altering that compact okay and uh i don't jason i don't want to take away from your staff i know that you guys do really hard work and i know it's hard to prioritize the you know what we have a lot of roads in the city right so it's really hard to prioritize which ones that we have to maintain or do quick fixes or whatever just from a standpoint of representing district seven it feels as if we have not been getting our due share and historically so i would like to see that that change and that we have more work being done in district seven and council member i totally appreciate that district seven has received funds recently we just completed the stony point road corridor which was about a 14 million dollar project which finished in 2017 and we also redid piner road between between occidental and third street which was about a six million dollar investment so so we have we have done some recent investment although it predated you in the seat so i certainly understand your concerns and that's part of how we're make trying to make sure and track where we've been and where we need to go into the future too to cover all bases within the community perfect thank you and vice mayor while uh while my constituents will be happy to hear that we get all the funding one year they actually drive outside of our district and so uh the other districts can have some as well we'll go to council member fleming thank you mayor i feel compelled to speak on this topic i think that equity is really essential and i think that if we if we push things to be in a district based model we are going to detract from equity i think that equity ought to be measured by what the where the need is and um where the best value is and so if we do have a study session to to address um what has happened and what's going forward i would i know i keep asking for but i want to continue to ask for which is value in terms of uh where where can we put our infrastructure resources that are going to generate uh return on investment so for example you know we we recently said that we wanted to put a 10 million dollar library in roseland well we did that in part because there's both a need and a value on return and so going back to our values and what we're trying to achieve and where we can get the the best return on investment from two perspectives one on equity and the other on economic value and oftentimes the two are tied together i'm really interested in that and i think districts one and seven to my mind stand to to gain the most from from this from this looking at it through this lens rather than just allocating per district because i think to the vice mayor's point uh these districts have not always received the um proportionals share of our investment and so we we need to do some um some remediation on that work i look forward to hearing um an analysis based on uh what we get for what we put in thank you council member fleming we'll certainly we'll certainly bring that back one of the other aspects that jan and i have discussed with um agali and and amy uh over in planning uh is the concept of um ensuring that we're not gentrifying a specific community based on the type of investment strategy that we're putting uh in that area so uh in certain cases we need to make sure that we're investing the type of roadway improvements that benefit the community that's currently living there and not the community that is driving through or the community that we may aspire to at some point um i think that this is something that's being pushed throughout the Bay Area region and across the country um i recently sat on the technical advisory committee you'll hear more about this as sean suggested when i come back with the study session but but i i totally understand where you're coming from we'll make sure we incorporate that as well and and you must immense uh miss shields not miss read right um not read no um agali tell us and amy um amy okay well i would hope that also you're involving our dei um our new dei coordinator as well yeah council member those uh those conversations happened before miss shields uh came to the city so now we're incorporating her in as well okay council member alvarez thank you mayor well i just want to echo what my colleagues just stated in regards to equity and uh transportation and the cdc reports that mentioned the health of the neighborhood especially what they come when it comes to uh accessibility road quality stops uh uh and also thank the city staff for the work that has been done in rosalind uh in the recent months uh we do appreciate the improvements to bar am to use and we are really excited to see what what other things are planted in our new future so i want to thank the city staff and really the the the workers and pavers out there uh doing good work so on behalf of district one i thank you very much and i'm very excited to see what what lays ahead uh what new roads lay ahead in district one thank you council member i'll pass that along to the staff all right thank you so much jason mr city manager do you have more to add there is nothing i think we're at the conclusion of the the budget study session from staff presentation all right we will go ahead and go to public comment then on our budget study session if you're interested in speaking go ahead and hit the raise hand feature on your zoom or if you're on your phone hit star nine and we'll go you'll get three minutes to address the council on this item madam please well i pull up this slide excellent thank you all right and madame city clerk i'm not seeing any hands for live public comment let's go to our voicemail public comments and i am a teacher at a small private non-profit preschool in santa rosa our school has been open since june 8th we opened as soon as we thought we could do so safely we knew we needed to open the program back up because our families were in crisis the children needed to get back to school back to their normal routine and back to playing and socializing with other children at the time we opened we were all unvaccinated we were scared for our health and about bringing home the virus for our own families still we showed up and did the hard and important work that we do every day because we knew it was the right thing to do for the children and families in our program we implemented all recommended health and safety changes and prayed we would all stay healthy the stipend would mean so much to me and my co-workers with reduced numbers of children this year and likely next year our program is running in the red no one is expecting any sort of raise or bonus this year for sure we all are just happy we have a job that we love that we know the value of this stipend would make us feel valued and appreciated and financially it would be a tremendous help please consider this request thank you for taking the time to listen to my message hi my name is ellie winecoupe i work at mark west community preschool which is now fulton community preschool and farm item number 3.1 i'm a preschool teacher here and i have been in this business through long before the fire but with this particular school in the fire and afterwards through fire after fire and now a pandemic i feel like coming back to work was really important for the families and for myself but mostly for the families i felt like the children were being at home and not having any social interactions and families were unable to do their work and i felt so much gratitude from the families and actually i felt so much gratitude from the children when they first came here we were outside almost the entire time literally through december through almost through january we were primarily outside and it brought so much joy to these children and then it gave me joy and even though the world was so scary it it brought like a semblance of normalcy to the families i feel strongly that it was important for me to do this work and important for the families especially since the families i had had been through the fires no i'd never actually been at they were at a temporary school and our new school opened up a week before the pandemic hit and then we had no more school so all those group of children did not get to finish their final year i am just putting together graduation books for those families and i will be presenting them to them a year later one at a time i i'm so grateful for this work and i'm grateful that i was able to be here thank you very much hi i'm calling to speak on agenda item 3.1 my name is emma sherman i'm a santa rosa resident a longtime resident of Sonoma county and i am a preschool teacher i've been working in person with young children um during the pandemic since august um and uh i'm calling to uh advocate for um the uh use of funds to support um early childhood education um simply put every parent knows that there is absolutely no returning to work or returning to normal uh without uh care for their children um and with the uh decrease in enrollment that we'd experienced and and all the turmoil of the last year um we absolutely need the support um the early childhood education is one of the most powerful and collected long-term investments to make in a community and the change in the children that we've seen this year has just been the the growth that they've had the the children that we've been able to uh care for during this time has been extraordinary and there is no more uh important uh area for a community to invest in than some children thank you hello my name is alice lin i'm in district one commenting on the budget hearings for uh regarding homelessness uh city council please support one million dollars for new homeless solutions three hundred and fifteen thousand for safe parking one point one million for a mental health response team one hundred and fifty thousand for community engagement seven hundred and thirteen thousand for sam jones annex and the homeless services request for project timeline un rules for war famine and disaster refugees provide everyone a secure camp a tent food water cooking and hygiene facilities santa rosa policy should provide the same for everyone unhoused non congregate shelter rooms tents and parking work best for safety dignity privacy and autonomy for health self-care at one's bed and to prevent costly devastating kickouts staff at congregate dorm shelters are in everyone's business down to tonial cutting resulting in absurd costly devastating kickouts that get us nowhere police sweeps abuse waste money add trauma prolong homelessness waste weeks of campers time finding a new location increase the likelihood of crime and sexual exploitation to pay for their necessities we need safe legal sleep solutions to better use funds for safe parking and camping and to urgently plan with people with lived experience safe camping and parking in each district please contact me i have recommendations to reduce homelessness cost and length through better physical and system design of shelters and services thank you very much for your service bye mayor that concludes uh recorded voicemail for this item we do have one hand raised let's go to ananda thank you so much good afternoon mayor rogers and council members ananda suite with the santa rosa metro chamber and thank you for all of your time and dedication through this process so as you discuss budget needs and priorities we would urge a strategic approach to investments in our economic recovery that support a vibrant and stable economy coming out of the pandemic some of the issues we talk about frequently along these lines business support increased housing supply and early child care and education are really key to a healthy economy and thriving community for all on early child care and education i truly can't thank you enough for your leadership in this area for changes in the permitting process and child care development to your significant direct investment and sustaining and growing the sector while looking ahead to innovative solutions your work in this area has been meaningful uh put santa rosa on the map as a leader in this issue and truly makes me proud to be a santa rosa you have an opportunity to make another meaningful impact in ece by using a small percentage of the american rescue plan funding for pandemic recovery for young children and families the chamber has signed on to the request that you have to the children have support the healthy safe ready to learn as we emerge out of coven 19 directing some of these one time art funds to support young children and families is critical to support santa rosa's workforce today and a crucial investment in santa rosa's future our community has lost thousands of child care slots which will cripple parents ability to return to work and will slow down our economic recovery about one third of our child care providers have paused operations with an unknown future status and funding to stabilize the small business sector and maintain providers that were operating pre-covid is really critical in our economic recovery studies show that investments in early child education set the foundation for learning ensure school readiness and narrow the persistent achievement gap for our region's most vulnerable children these investments are absolutely economic development and bring a high return on investment from savings in special education or mediation better health outcomes reduced need for social services lower criminal justice costs and increased self-sufficiency and productivity of families our communities families have been through crisis after crisis with recurring disaster since 2017 it is critical to invest now in positive early childhood mental health and community interventions to help ensure the success of children and families for these one time recovery dollars this regional approach is key and a really valuable opportunity to strategically address COVID-19 impacts of local level thank you so much thank you so much Ananda Mr. City Manager did you have any final comments on our study session not at this time we will be preparing based on the input received right now a budget we as I said we will be back on the 10th to the long-term finance committee and on the of the June and on the 13th of July to really try to focus down on those one time funds that you've just heard some public comment about to try to get the council on and figure out what our investment strategy both internally and externally is going to be great thank you so much and council were there any last comments before we ended our meeting for today all right well thank you so much and thank you to all the staff who presented oh council members what happened go ahead I just want to share so I gave some feedback there's some things that we didn't talk about I think you touched base on it a little bit Mr. Mayor about the diversity equity inclusion work where how are we going to address that and then on our council meeting on May 5th we talked about wanting to declare racism as a public health crisis in Santa Rosa and I know that's going to cost money maybe some restructuring and I'm just not sure where we're going to have that conversation additionally with you know slide five of the presentation about the 21.1 general fund position cuts 3.4 million I'm not sure if all the goals the council goals that we presented in February we can do it with the amount of staffing that we're approving and I'm just wondering if there's an opportunity for us to do a mid-year council goal resetting of it because we're asking too much of staff if we want to have a community or an policing department and we're cutting an additional staff we're about to enter into fire season and we're cutting five additional positions it just is not making sense to me and I heard Mr. City Manager's response to the vice mayor's comments about we want all this and the city manager said then council's got to stop asking for all the things that we want I wanted to when are we going to have that discussion because we've got 2244 million dollars to potentially either sustain it for a little bit or come up with comprehensive strategy but I just don't think we can continue to ask without that ongoing funding identified to meet the goals that this council has established I just wanted to share that and wonder if you have any thoughts about that because the one other overarching goal that I have you know I'm hoping and I know I'm confident the city of San Rosa continues to hire the best and the brightest but where does innovation occur within the city of Santa Rosa I've got no idea because it sounds like they're going from project to project based on the direction of council and council is not the only one that creates innovation in the city where it requires staff and I'm not sure we're getting room to breathe much less innovate so I've asked the mayor actually to schedule with the new with the interim city manager exactly this conversation I think it's incredibly important that you all convene one of the things that I know is happening as of June 22nd is that you will be back in person I have not shared this with the sit with the mayor but I believe that that you need to sit down and potentially have a goal setting conversation updating where you were and having a conversation in person with staff in an environment that we've relied on the past to be a team building an exercise so I have I have put that request in front of the mayor I think a little bit was trying to get through the recruitment of the interim city manager and so I apologize for causing that issue in delay but I do know that I I believe the mayor is contemplating exactly the things that you have laid out council member council member Fleming yeah to that point I recognize that we have limited resources throughout our city and I'm always interested in hearing you know what it would cost and what the resources are needed to do what the council is asking alongside the consistent pushback that we're asking too much because I don't I don't plan to stop asking for what I believe is necessary for our city but I do want to hear what the true costs of it are and what we need to achieve it so I'd like to hear both proposals side by side so that we can manage you know time and costs thank you and I'll just say council member Schwedheim I completely agree that's why I was asking for space in the one-time conversation about the implementation from the DEI work and I think that that's an important component for us to discuss with the new interim city manager as well are there any other comments from council vice mayor well not on that note at all but I just wanted to take the time to thank all the staff for all the work that they do and despite us making multiple requests on top of requests you guys just continue to do it and you continue to smile and if you grumble you don't do it to us so I don't see it but I just wanted to thank you so very much for the sacrifices you guys make as far as time is concerned when we ask you to get us something additional information you know you get it to us in a timely manner I just I think we work with a wonderful staff and I'm very happy to be on council with such a wonderful and accommodating staff so thank you all so much for the work that you do and provide the city all right and on that note we will go ahead and adjourn today's meeting I'll see you all next week