| Time | Speaker | Text |
|---|---|---|
| 00:00:00.03 | Unknown | what's happening. In a little bit of depth. The other thing I want to ask about, though, is there some kind of formal City action for Ridgeway Marine Corporation to vacate that land between Litho and Loka Street. where all the boats have been stored and burned out trailers and everything. I see it's happening, and I'm very happy that it's happening. but I can't find any public information about why. Are we allowed to talk? Are you allowed to talk about that? |
| 00:00:29.98 | Mayor Kelton | Not tonight, but we can, the city attorney and the city manager can address. Thank you. |
| 00:00:30.39 | Unknown | If you can. |
| 00:00:35.00 | Adam Politzer | Thank you. Right, so thank you, Mr. Donald. The city staff, particularly the Community Development Department, and the Police Department, and the Public Works Department all received complaints from the community, and we started enforcement action to ask them to clean up and remove, and we're actually also working with BCDC. So there's actually a lot of activity there, so if you would like additional information and maybe I can ask our public works director and our community development director to write up a quick blurb on what we can put in the exhaustive occurrence with legal action. But just to give folks some security that the city is working on behalf of the community to improve the visual site and the impacts on those properties. |
| 00:01:26.90 | Mayor Kelton | Okay, anyone else have any comments on items that are not on the agenda? All right, seeing none, we'll move on to action minutes of the previous meeting. Any comments, changes, additions, deletions? Seeing none, do I have a motion? |
| 00:01:43.86 | Unknown | Yeah, so moved. |
| 00:01:46.41 | Mayor Kelton | Second? Second. OK. Debbie, call the roll. |
| 00:01:53.18 | Unknown | Council member Ford? Yes. Council member Weiner? Thank you. |
| 00:01:55.79 | Unknown | Yes. |
| 00:01:57.25 | Unknown | Vice Mayor Leone? Yes. Mayor Kelly? Yes. Council Member Pfeiffer? |
| 00:01:58.76 | Unknown | Yes. Yes. |
| 00:02:00.59 | Mayor Kelton | Thank you. |
| 00:02:02.97 | Unknown | Yes. |
| 00:02:05.16 | Mayor Kelton | All right, we move on to the consent calendar. And the consent matters listed here are considered routine and non-controversial and usually require no discussion, but any member of the public or any member up here can pull an item from the consent calendar. I think that we got an email earlier asking that the consent calendar Item B be removed and scheduled for a different time, not tonight. So that's the only change I'm aware. Anybody have any? Yes. |
| 00:02:29.56 | Unknown | Item 4B, Mr. |
| 00:02:40.73 | Unknown | Yes, Mr. Mayor, I have a question about item H. and also I'd like to pull item K and basically I have a question about that one |
| 00:02:57.67 | Mayor Kelton | Okay. You want to ask a question about item H? Yes. If you can resolve it? Yes. I think... |
| 00:03:01.10 | Unknown | Yes. So if you can resolve it? Yes. I think. |
| 00:03:02.97 | Adam Politzer | . Doreen here. If Doreen is here, Good. |
| 00:03:07.50 | Unknown | Good. Yeah, my question is this. I have no problem in approving this. In fact, I think it should be approved. My question is, why in the world are we charging $1,189 for a permit to set up a 30 foot tent. I... just had a hard time believing that we would charge that amount. |
| 00:03:30.41 | Unknown | Thank you. |
| 00:03:39.71 | Unknown | I don't know. Councilmember Ford, the $1,189 charge is our charge for minor use permits. Minor use permits involve review of an application, preparation of a SAP report, the holding of a notification, public hearing notices to property owners within 300 feet of the subject site, the holding of a notification, public hearing notices to property owners within 300 feet of the subject site, the holding of a zoning administrator public hearing, and the preparation of a resolution identifying the action that's taken and on some obviously on some projects that we have fixed fees for our projects. This fee is commensurate with the average minor use permit application that we have. Obviously in some projects, the amount of staff time spent involved in these tasks does not rise up to the level of the fee that is charged. And in others, the amount of staff time that is spent on these various tasks greatly exceeds this charge. So, Until we are able to shift over to a time materials-based fee, we use fixed fees, and that generally is targeted toward the median cost for this type of permit. |
| 00:05:12.44 | Unknown | Okay, so this basically does include more than just setting up the tent. It's a notification of the public and... etc, etc. |
| 00:05:21.92 | Unknown | It's including the conduct of a public hearing and the staff report and the answering questions that we receive from the public on your typical minor use permit. |
| 00:05:26.97 | Unknown | Okay. |
| 00:05:33.62 | Unknown | Okay, thank you. |
| 00:05:36.37 | Unknown | Okay, so are we okay with that one? |
| 00:05:38.51 | Unknown | Yes, and then Kay. is the housing response to AAVG. I just have a question, I guess, for Jeremy again. And that is setting aside the RHNA numbers. Setting aside the RHNA numbers for a minute, |
| 00:05:51.96 | Unknown | Okay? |
| 00:05:59.45 | Unknown | And just looking at the overall housing that Sausalito has, What percentage of that, of our overall housing, is low or low income, is affordable income housing? Do we know that? |
| 00:06:17.74 | Unknown | what percentage of housing in Sausalito today is rented at affordable rates. Right. We do not know because we do not know what the market rates are for the different rental units in town. |
| 00:06:21.64 | Unknown | Yes. |
| 00:06:35.88 | Unknown | So we have no survey. To ascertain that, we'd be doing a survey. And frankly, we're not required to gather that information. And so that would be a cost that we would not need to expand. |
| 00:06:48.88 | Unknown | Okay. Gather that information. Okay. So we don't have it. |
| 00:06:56.15 | Unknown | Okay, so... My thought. And the reason I'm asking this question is we're a town that is composed of 50% approximately renters. And when we have a large number proportionately for low, low income housing, 25 this time as I read, |
| 00:07:08.30 | Unknown | Yeah. |
| 00:07:18.26 | Unknown | the ABAG numbers 25 out of our 82 I believe or 90 some are for low low. So I was thinking if we could do... If we had that information and it was beneficial to us, we could say we have already have 30 percent is low income housing And so, ABAG, please look at this and change our figures because that's what we struggle with here in Sausalito with the ADUs and the liveaboard and that kind of thing. |
| 00:07:55.94 | Mayor Kelton | Thank you. This is getting, it's a good question, but this is getting into an item that we should move to the end if we want to have a deep discussion about it. |
| 00:08:06.38 | Unknown | Okay. |
| 00:08:06.84 | Mayor Kelton | Um... |
| 00:08:08.04 | Unknown | Well, I believe that how that 25, the methodology that ABAG uses in establishing The first step that ABAG does is establish the total RHNA for each jurisdiction. Yes. |
| 00:08:23.53 | Unknown | Yes, but we're being, excuse me, just a minute. I think this will clear up. We're being asked to give our recommendations for changes to how they establish their quotas. So that's what this relates to. So let's not get into how they establish reading this point. |
| 00:08:27.24 | Unknown | Yeah. |
| 00:08:27.33 | Unknown | That was... |
| 00:08:39.04 | Mayor Kelton | Thank you. We're going to move this item to the end of the evening. Thank you. So it would fall after 6C. I guess we can call it 6D. |
| 00:08:41.62 | Unknown | Good. Thank you. |
| 00:08:53.96 | Linda Beach | Thank you, Ms. Mayor. This is Linda Beach. I also have similar questions. Also, we... We did a survey on second units and |
| 00:09:07.61 | Mayor Kelton | Okay, Linda, I don't mean to cut you off, Linda. I don't mean to cut you off, but we just continued it to the end of the meeting, so I'd like to move on. Can we get a... |
| 00:09:08.57 | Linda Beach | I don't want to. |
| 00:09:16.92 | Linda Beach | I know that. I know that. I was just, I was just, um, |
| 00:09:18.56 | Mayor Kelton | Yeah. Yeah, you just save it to the end, okay? |
| 00:09:21.50 | Linda Beach | Okay. Thank you. |
| 00:09:22.76 | Mayor Kelton | All right. Do I have a motion to approve the consent calendar with the removal of B and the move of K to the end? Yes. |
| 00:09:30.88 | Unknown | Yes, so moved if you call item A separately from the remaining items. So I moved to just have that called separately since it was not a unanimous vote. So I would move to... |
| 00:09:40.82 | Mayor Kelton | So we moved it. I'm missing you. |
| 00:09:43.25 | Unknown | Hey, you just call it separately because it wasn't |
| 00:09:46.93 | Mayor Kelton | you want to vote on it separately? |
| 00:09:49.21 | Unknown | Yes. OK. So but with that one, then A and then B through J. OK. |
| 00:09:49.81 | Mayor Kelton | Okay. |
| 00:09:53.95 | Mayor Kelton | Okay, so we'll... What is the... Then we need to pull it. C3J. We're going to put on it separately? No. No? Just take two votes. Okay, two votes. First vote. Two votes. First vote. Item 4A, which is the waive further reading and adoption of Ordinance 1206, Ordinance of Establishing Temporary Use of Residential Properties as Vacation Rivals. All right, do I have a motion to... |
| 00:09:57.78 | Unknown | See you through, Jay. Thank you. |
| 00:09:59.78 | Unknown | No, just take two votes. Okay, two votes. |
| 00:10:19.97 | Unknown | Thank you. |
| 00:10:21.15 | Mayor Kelton | Okay, I need a second. |
| 00:10:23.12 | Unknown | I'll second. Thank you. |
| 00:10:24.29 | Mayor Kelton | All right, call Rome. |
| 00:10:25.99 | Unknown | Thank you. |
| 00:10:32.25 | Unknown | Councilmember Ford councilmember Weiner yes |
| 00:10:35.86 | Unknown | Yes |
| 00:10:37.48 | Unknown | Thank you. Councilmember Pfeiffer. |
| 00:10:41.28 | Linda Beach | I'm sorry. I could not. It was muffled. I could not hear the motion. Are we keeping it on the consent? Are we pulling it? |
| 00:10:48.38 | Unknown | No, it's just a vote on 4A individually. |
| 00:10:52.60 | Unknown | And why are you pulling that? |
| 00:10:54.26 | Unknown | We're not pulling it. We just opened it up separately. |
| 00:10:54.51 | Unknown | RELATED. |
| 00:10:54.60 | Mayor Kelton | I'm sorry. |
| 00:10:54.76 | Unknown | Bye. |
| 00:10:54.95 | Mayor Kelton | I'm not going to be doing it. |
| 00:10:55.78 | Unknown | Bye. |
| 00:10:55.79 | Mayor Kelton | Yeah. |
| 00:10:56.15 | Unknown | Oh, why are you voting, wanting to vote on that? |
| 00:10:58.49 | Unknown | I didn't vote for it the first time, so I'm not going to vote for it. |
| 00:10:59.25 | Mayor Kelton | We'll be right back. but I'm not going to vote for it. Okay, so are you clear about it, Linda? |
| 00:11:08.08 | Linda Beach | Yeah. I thought we already voted on this on the last Council session. I guess it's the reason I confused. |
| 00:11:11.20 | Mayor Kelton | Thank you. |
| 00:11:11.23 | Unknown | Thank you. Yes, but it takes two. You have to read an ordinance twice, and this is the second reading. Um. Thank you. |
| 00:11:17.61 | Mayor Kelton | Right. |
| 00:11:17.93 | Linda Beach | Oh, okay. Thank you. |
| 00:11:20.41 | Mayor Kelton | All right, so you okay? Yes. All right. Debbie, call the roll. |
| 00:11:26.02 | Unknown | I did. That's two. |
| 00:11:28.77 | Unknown | Thank you. |
| 00:11:28.78 | Mayor Kelton | Oh, yeah, her vote again. |
| 00:11:29.02 | Unknown | Yeah, her vote. That's her vote. It's Linda's vote. Yeah, I voted yes. Linda, you said come back. |
| 00:11:30.98 | Unknown | you |
| 00:11:31.57 | Mayor Kelton | Yeah. |
| 00:11:35.18 | Linda Beach | I'm sorry. I thought she was going to repeat my name. Okay, no. Yeah. |
| 00:11:39.87 | Unknown | So then you know. |
| 00:11:40.17 | Mayor Kelton | Thank you. Thank you. |
| 00:11:41.56 | Unknown | Thank you. |
| 00:11:41.59 | Mayor Kelton | No. |
| 00:11:42.05 | Unknown | Thank you. for me. |
| 00:11:44.36 | Mayor Kelton | Yes for me. No for Jonathan and yes for me. So it's the same as it was last time. |
| 00:11:50.54 | Unknown | Council Member Leon, I mean Vice Mayor Leon. Let's make it open to the kitchen. |
| 00:11:53.84 | Mayor Kelton | No. Thank you. Thank you. Okay. |
| 00:11:57.25 | Unknown | And Councilman, I'm sorry, you guys got mail speed up. Mayor Kelly. |
| 00:12:01.57 | Unknown | Yes, it's the heat. |
| 00:12:04.32 | Unknown | I'm not saying. |
| 00:12:05.45 | Unknown | Thank you. |
| 00:12:05.72 | Unknown | I'm not. |
| 00:12:05.93 | Mayor Kelton | THE END OF THE END OF THE |
| 00:12:06.20 | Unknown | Thank you. |
| 00:12:06.74 | Unknown | Yeah, that's it. |
| 00:12:08.03 | Unknown | to take my time |
| 00:12:08.51 | Unknown | Thank you. |
| 00:12:08.52 | Mayor Kelton | Okay? Now, the rest of them, which would be C, |
| 00:12:09.38 | Unknown | Thank you. |
| 00:12:09.40 | Unknown | Thank you. True, true. |
| 00:12:12.86 | Mayor Kelton | Through J. |
| 00:12:15.00 | Unknown | So moved. Second. |
| 00:12:17.03 | Unknown | Maybe just Thank you. |
| 00:12:18.43 | Unknown | Sure. I just seconded for the second. |
| 00:12:21.30 | Unknown | Thank you. |
| 00:12:21.33 | Unknown | THE END OF THE END OF THE |
| 00:12:21.67 | Unknown | Thank you. |
| 00:12:26.78 | Unknown | While we're waiting, could I ask staff if we've received any correspondence on Ordinance 1206? Pro or con? |
| 00:12:43.93 | Unknown | This is a vacation rentals. |
| 00:12:49.75 | Unknown | We received one email today, and I'm not sure if it was |
| 00:12:59.89 | Unknown | I forget if it was in favor or in opposition. And we forwarded it. |
| 00:13:02.96 | Unknown | It didn't go one way or the other. It didn't imply in favor of or against |
| 00:13:09.70 | Unknown | Okay, yeah. |
| 00:13:11.33 | Unknown | We just talked about it. |
| 00:13:13.11 | Unknown | So. |
| 00:13:14.46 | Unknown | One. Okay, there you go. One. Okay. |
| 00:13:19.04 | Mayor Kelton | Thank you. All right. See you through J. How are you still? |
| 00:13:24.11 | Unknown | T3J is Council Member Ford. |
| 00:13:27.16 | Mayor Kelton | Thank you. |
| 00:13:27.18 | Unknown | Yes. |
| 00:13:29.32 | Unknown | Council member Weiner. |
| 00:13:30.34 | Unknown | Yes. |
| 00:13:32.36 | Unknown | Council member Pfeiffer. Yes. Vice Mayor Leone. |
| 00:13:38.38 | Mayor Kelton | just |
| 00:13:39.57 | Unknown | Mayor Kelly. |
| 00:13:40.76 | Mayor Kelton | Yes. All right. Item five is public hearings. We have none and so we'll move to business items. And the first business item is Richardson's Bay Regional Agency. Update. Ben Bertolt. Welcome. |
| 00:13:55.66 | Ben Berto | Thank you. It's good to be here, Mr. Mayor, members of the council. My name is Ben Berto and I'm the clerk for the Richmond Bay Regional Agency. I thought Bill Price was going to be here also. Maybe he'll be able to attend later on. That's fine. I've been asked to provide a kind of an update on the overall doings of the Richardson Bay Regional Agency with an emphasis on activity in Anchorage. As I'm sure your counsel has heard, there's been quite a bit of discussion on the Anchorage situation in Richardson Bay for the past several years, specifically under the leadership of then-supervisor Charles McGlashan. We had developed a conceptual program to present Bay Conservation and Development Commission in 2009 And that involved about 125 moorings out in the bay with a proposal to organize all anchored vessels, liveaboards and stored vessels included onto that mooring. We received a decidedly negative response from BCDC and Mr. Travis in particular at that time, and we put that effort on hiatus for that reason. With the coming of the America's Cup, there was considerable interest in revisiting that situation and we did so. In addition, there has been some threatened litigation on behalf of BCDC regarding the continued long-term storage of vessels in Richardson Bay. So staff has been engaged in a multi-pronged effort dealing with anchored vessels. This includes discussions slash negotiations between RBRA staff and BCDC staff. In addition, this has been agendized several times before the Richardson Bay Regional Agency Board most recently last Thursday where member Leon attended. We've also been fortunate to have our alternate member Weiner at a number of those meetings when member Leon was unable to attend. And where we are going, the direction of the board of late has been that they would like to see a more concerted effort towards reducing stored vessels. These are not liveaboard vessels. I want to make that very clear from the onset. is that the vessels that are not lived upon but are stored out on the anchorage and basically the ones that represent the greatest hazards to navigation, the ones that in typical inclement weather in the wintertime are the most likely to break loose we've all seen that the issues that are attended with some of these vessels on the anchorage so the direction of the board has been to come back with some options for investigating a greater rate of stored vessel removal than has previously been the case. Staff did so at the last RBRA meeting last Thursday. There are four basic options. One is a continuation of our current efforts. These consist of removal of approximately 50 to 75 vessels from the anchorage annually. This harbor administrator, Bill Price, has done very capably for an astonishingly small sum of money every year for longer than I've been here, and I'm working on my 10th year. So this is a continuation of that, recognizing that many, many jurisdictions, Sausalito not the least of them, are experiencing ongoing financial difficulties and that in all likelihood it would be very difficult to acquire additional funds from local jurisdictions for that abatement effort. It should be noted that all but 10 percent of the funding for that vessel removal does actually come from the State Department of Boating and Waterways through a couple of abatement programs that they fund. One caveat with continuing the current level of abatement and current funding is that we've been notified by the Department of Boating and Waterways that it is likely due to demand for services that RBRA's funding level may drop somewhat in the next year. We're not 100% sure what the eventual outcome will be, but we feel it's likely that there may be a 15% reduction in overall funding this next fiscal year. A direction that the board was very interested in was to pursue the proverbial low-hanging fruit, that is to say, okay, we recognize that Bill does a very good job of largely voluntary vessel donation for the wrecking ball, as it were, and is there more that we could do? In response to that, Bill, at last count, had secured or was in the process of securing rights to an additional approximately 600 lineal feet of vessels, which we calculate would roughly cost about $90,000 to wreck if we were to go out there tomorrow, money's no object, we have the crew and the debris boxes and all that stuff, go out and wreck it. Well, the challenge with that, of course, is that we have our normal annual wrecking budget, which is about $120,000, and then we have this $90,000 that we could spend in the next month. So the challenge before the RBRA board is how do we address doing more? Well pretty clearly we're going to need to get some additional money from somewhere and this was another direction that the board provided. At the direction staff has been pursuing the possibility of getting a couple of grants. One is from the Cal recycle program, the other is the Costco Museum of the oil spill fund and we are in the process of applying for grants for both of those programs. It is possible that by calendar year 2013 we may have several hundred thousand dollars available to RBRA from one or more of those or both of those grant funding efforts. This probably is a best case scenario because it would provide outside funding hopefully without too many strings attached, although that remains to be seen. But outside funding, that would enable us to make a serious dent in the anchor out population, the stored vessel population. One of the things that we have done on a biennial basis every two years is we've conducted a detailed census of all vessels on the anchorage. We completed that in this last month, and the results are that since the last survey in 2010, when approximately 130 vessels were censused, we are now up to approximately 160 vessels. So this is no surprise, economic times being what they are. Owning a vessel, paying your birth fee, as we know, can be quite expensive, especially when times are tight. People are giving up their vessels or simply moving them out into the anchorage. Nonetheless, it is a worrisome trend, given that there is a substantial increase in the number of vessels out there. We were fortunate this last winter in that only a – we had very mild weather, and so we did not experience the type of storm events that could result in a dozen or more vessels going aground, Thank you. We had very mild weather, and so we did not experience the type of storm events that could result in a dozen or more vessels going aground, which often, in short order, need to be demolished because they're destroyed beyond salvage. So, that's where it pretty much stands in terms of the the options that we're pursuing at this time again i want to make it very clear that we have categorized the vessels into very distinct classifications that rbra has never uh directed any abatement or elimination of liveaboard vessels and the people living on that we recognize that those people are part of the community of Sausalito and have been in present in Sausalito probably since before California was a state so this ongoing lived aboard population in in in Sausalito is part of the fabric of this community. Nonetheless, there are also attendant problems out there, and the board feels that it is incumbent on us to do what we can to reduce those problems. If we do pursue or successfully gain grant funding in substantial amount for vessel abatement, it is our hope that we can also use that to jumpstart an effort to pursue the mooring field. We have had some negotiations with BCDC. There's nothing to report at this time yet, but the hope is that at some point we may come to a meeting of the minds and agree on a program going forward with BCDC's approval. They're obviously the agency that has the most to say about anything we attempt to do out there. I think it's fair to say that in their ideal world there would be no vessels anchored out there for long. the agency that has the most to say about anything we attempt to do out there. I think it's fair to say that in their ideal world there would be no vessels anchored out there for long term. Their vision of a mooring field is for transitory vessels only. I think RBRA and certainly in our prior presentations has always accepted that there will be a percentage of those which are going to be live aboard vessels and there will also be vessels that will be stored. If for no other reason, then that is fairly standard practice on every moorage around the world as far as staff is concerned. And they also can provide a regular source of income, the transitory vessels being much more seasonal and up and and down so we're in the process of doing that we hope to have some good results in terms of fundraising efforts and movement with respect to bcdc and if that if those two things come together we may be back before the Sausalito Council on a number of items. We certainly anticipate that prior to doing any serious efforts, organized efforts, we would first conduct an outreach program and get input from the various publics that are of interest in that area. I mean, there's a ton of people who are landside now that used to live on the water. We've talked to a number of them. And as we say, that's part of Thank you. interest in that area i mean there's a ton of people who are land side now that used to live on the water we've talked to a number of them and as we say that's part of the fabric of this great city so we hope to be able to move forward with this we don't think that under the best of circumstance it's realistic to hope that we will have a mooring field minted up for the america's cup But if Larry Ellison and his skipper are as good as we hear they are, maybe they'll win the America's Cup and do another one in another four years. So with luck on that, we could very well have a mooring field in place for the next event. So if you have any questions, I'd be happy to answer them. |
| 00:25:08.96 | Unknown | Mr. Mayor, yes. Yes, you mentioned that you have |
| 00:25:08.98 | Ben Berto | Thank you. |
| 00:25:17.77 | Unknown | 50 to 75 boats that are salvaged every year, yet the number is not going down. So my question is, what incentives do you have for people not storing their boats on the water, what mitigation how are you looking at handling that? Um, you I think that's a huge issue. Even if you put in a mooring field, |
| 00:25:47.37 | Unknown | He did. |
| 00:25:50.98 | Unknown | you're still going to have that issue of people storing boats on the water. |
| 00:25:57.80 | Ben Berto | You're absolutely correct that one of the reasons why we can wreck that number of vessels every year and yet not have that number go down is there's a considerable inflow of vessels. As we know, Richardson Bay is an ideal anchorage in many regards, and so it naturally attracts mariners. It's a federal anchorage, and so it will always be an attractive. In order to address that issue, there would probably be a number of steps that we would take. The first is that with a concerted vessel reduction effort, and we see to pursue any significant number of vessels, we will need to call in our counterparts, including the Sausalito Police Department and other law enforcement agencies. We will need to probably get legal staff on at least a hired basis to pursue it in court if necessary and to set the standard and the expectation that yes, all are welcome to visit our Anchorage, but if you're here for any length of time, you need to go in a ball. And if you're unwilling to do so, you will face the legal consequences. |
| 00:27:03.66 | Unknown | Why are we not doing that now with the boats that are simply uninhabited and stored in our bay? Why can't you take that police action and do it now? That's my question. |
| 00:27:16.48 | Ben Berto | That's my question. Yeah, what we find is that it's a very fluid situation on the anchorage, that there are due process requirements, including finding out who the vessel owner is. Oftentimes, who's on record with DMV and other registration sources is not the current owner. So you're trying to track down the current owner through the former owner. And as we know, some of the people on the anchorage aren't the easiest people to track down when you need to talk to them. In addition, it's very expensive to vigorously pursue people. Right now, Bill more or less talks people into giving up their vessels. We spend very little funds. Our current legal budget is $6,000. So we achieve through voluntary compliance, suasion, other means, every boat has its own story, that reduction on a voluntary basis. We simply do not have the budget at this time to take a more concerted approach. As I pointed out initially, we have $90,000 worth of vessels that we could wreck next week if we had funds forthcoming. One of the directions or discussions that came out last week's RBRA meeting was a number of jurisdictions, and Vice Mayor Leone can comment on to this if he wishes, but a number of jurisdictions said, hey, we don't see the vessels out there as a significant enough problem to parse money out of our tight budgets to simply abate more vessels. So it may be a greater problem for some of the communities such as Belvedere and Tiburon, but not so much for us. And so under the normal, funding formula which Sausalito contributes 35 percent, that would say that they would contribute a very large sum of say $100,000 additional money to wreck vessels. So it's one of those things where we have to make budget choices. We will be discussing with some of our jurisdictions that have indicated a strong desire to pursue additional abatement, whether or not they would be possible to provide us with additional funds. But as things stand right now, we have vessels awaiting disposal that we don't have the funds to take care of. |
| 00:29:36.66 | Unknown | Is our Sausalito Police Department assisting you with the vessels at this point in time? |
| 00:29:42.52 | Ben Berto | Sausalito PD has been instrumental in our efforts. We have up to very recently shared patrol with Sausalito PD. Their outreach efforts with the Anchorage go a long ways towards helping a jurisdictional presence, |
| 00:30:01.79 | Unknown | but that's primarily with the residents out there, right? The outreach program. So I'm talking about those salvageable boats. So anyway, that's my question. I would like to see in a nutshell what I would like to see is RBRA taking a stronger, making a stronger police effort in regard to these votes. And certainly, you know, I don't, |
| 00:30:29.97 | Mayor Kelton | Let's see, the need for... Can we say this is sort of a question? Okay. Everybody will get a chance to make a comment. |
| 00:30:33.20 | Unknown | Okay. All right. Sure. |
| 00:30:36.45 | Mayor Kelton | I'm sorry. |
| 00:30:36.49 | Unknown | Thank you. |
| 00:30:36.55 | Mayor Kelton | You okay? |
| 00:30:37.25 | Unknown | Sure. |
| 00:30:37.55 | Mayor Kelton | Okay. |
| 00:30:38.21 | Unknown | more. |
| 00:30:38.48 | Mayor Kelton | questions. |
| 00:30:38.82 | Unknown | Yes one more question auction do you there must be some boats out there that are not only salvageable but some ship lover, boat lover would pay for. Um, And My question is, I know there are a lot of derelicts, but surely there are some that could be auctioned off and the RBRA could. have some income in that respect. Is this a consideration? |
| 00:31:09.75 | Ben Berto | Well, I... As Bill has said to me before, beware the project boat. I think a significant percentage of those are somebody's dream of eventually sailing off to Tahiti on a fully restored vessel. |
| 00:31:22.84 | Unknown | That's the nature of everyone who buys a boat. |
| 00:31:25.17 | Ben Berto | Thank you. |
| 00:31:26.77 | Unknown | Thank you. |
| 00:31:26.84 | Ben Berto | Yes. The challenge is that what you have out there is probably about half that are in very poor condition. And the reality of what they're actually worth at auction, there's a reason why they're sitting in a semi-abandoned state out on the anchorage that indeed the ones that are in better shape usually do have an owner attached to it. So if you were to |
| 00:31:41.40 | Unknown | . |
| 00:31:49.30 | Ben Berto | sees it and say, oh, you would be a fine auction item, the first question you would have to ask is, where is it likely to end back up? And number two, what are those people likely to say about it? This, however, is indeed part of the challenge or the task before us as we go into a greater reduction, is there may be those owners that, for whatever reason, say, no, I like my boat, and I don't want you to take it from me. So regardless of resale value or whatever reason, we will face an upfront cost and challenge in securing that vessel. And I dare say, looking at the number of vessels out there, that the market, it's not a buyer's market, right, or seller's market for vessels right now. Most of them end up in the debris box for a good reason. |
| 00:32:38.27 | Mayor Kelton | Any other questions? All right. Thank you very much. Thank you. Bring it up here. |
| 00:32:43.40 | Linda Beach | I'm sorry, Mr. Mayor, I do have a question. |
| 00:32:45.83 | Mayor Kelton | Okay. |
| 00:32:46.04 | Linda Beach | Good morning. |
| 00:32:48.04 | Mayor Kelton | Go ahead. |
| 00:32:50.53 | Linda Beach | Yes, I guess my question is, I know the city of San Diego has a similar problem, and their process, involves impounding the boats for 90 days and then auctioning off the boats or destroying them. And, of course, this is still a time-consuming process. But I was wondering, has RBRA reached out to other coastal cities to explore best practices on this regard. |
| 00:33:19.77 | Ben Berto | Yes, we are, Bill, through his communications with various other jurisdictions, including visiting San Diego not too long ago to watch their scaled-down version of their America's Cup preliminary events had talked to those people. And again, a lot of this comes down to money. Just to give you an example, out in the Sacramento River Delta, Contra Costa County, they have a six-person full-time patrol at a cost of, I believe, $2 million a year, and they wreck fewer vessels than Richardson Bay Regional Agency. So there are people that put in a great deal of effort up there. They had – I've seen the pictures where there were just dozens of them beached at the high water mark. What we get here in Sausalito is the best bang for buck in the state. And frankly, our success in year after year being kind of first in line for grant funds indicates that the state is well aware of that. |
| 00:34:22.43 | Linda Beach | So my follow-up question on that is, and thank you very much for sharing that with me and the public. I know that in San Diego they have a current law that stipulates the vessel. Uh. can only be in like for example Mission Bay for 72 hours before it is impounded. laws on the books for Richardson Bay. |
| 00:34:46.74 | Ben Berto | Yes, we do have a 72-hour rule, which of course is observed in the breach. I will also point out, however, that San Diego has at least one and I believe two live aboard moorages. So they have fought those battles and have determined that the best solution for them, I think they call it Area 8, is to provide an area for live aboard anchor out vessels. They also have vegetables. |
| 00:35:10.15 | Linda Beach | Yeah, San Diego is very, very large. |
| 00:35:14.87 | Ben Berto | Thank you. |
| 00:35:14.91 | Mayor Kelton | Any more questions? |
| 00:35:15.95 | Linda Beach | Bye. |
| 00:35:16.00 | Unknown | Thank you. |
| 00:35:17.02 | Linda Beach | No, thank you. |
| 00:35:18.67 | Unknown | All right. |
| 00:35:19.90 | Unknown | The question had been, I think San Diego, the port of San Diego, which is what administers the program, has a full-time police staff of over 11 or so people. |
| 00:35:30.40 | Ben Berto | multi-million dollar. |
| 00:35:31.24 | Unknown | And they have a very large part of their budget goes to the legal side of it, which I think people don't quite get that, once you, especially for a vote where someone claims to own it versus the ones that are abandoned, you're immediately going into a lot of legal costs to process that vote because people will contest it. I mean, the good example was that that old fishing boat that was out, well, I don't know how old it was, but it was somewhat old, that was out there for a good year or so, and the guy fought it, and I forget how much the RV area spent trying to battling this guy in court, but it was big chunk of money. |
| 00:36:03.27 | Ben Berto | Right, and the one former commercial vessel that we did abate with no legal costs was $60,000 in mere salvage costs. So especially the larger vessels, when you consider that one of those vessels is half of our annual budget, before you get involved with any of the enforcement or legal costs, it just gets tremendously expensive. |
| 00:36:25.07 | Linda Beach | Are we still in question or are we going into comment? |
| 00:36:29.48 | Mayor Kelton | I would rather take us in the comment unless somebody has another question. |
| 00:36:36.31 | Mayor Kelton | No? Okay. Seeing none, thank you again. for the report. We appreciate it. Okay. Thank you, Ben. |
| 00:36:40.70 | Unknown | Okay. |
| 00:36:41.91 | Mayor Kelton | All right, at this time I'll open it for public comment. Is anybody in the public? realm willing to get up here and talk about this or have something to say? All right, seeing none, we'll bring it back up here. Um, Make it brief if possible. |
| 00:36:56.28 | Unknown | Yeah, no, I think the question here is we're dealing just with the Abandoned boats is at this moment in time How much money do you want to spend and where is that money going to come from? And some of the member jurisdictions here who tend to have the most issue with this contribute virtually nothing to this agency. So a question I've put to them is, well, if you want to clean it up, put your money where your mouth is, |
| 00:37:13.94 | Unknown | Yeah. |
| 00:37:14.18 | Unknown | Bye. |
| 00:37:14.21 | Unknown | to see. |
| 00:37:20.26 | Unknown | And so Tiburon, if you pay $10,000 a year, How much value do you expect to get back for $10,000 a year? So, The question there is if more money is put up, Does that, you know, money talks sometimes, too. So if you put up more money, how does it impact the folks that are living out there, not just the derelict festivals? So that remains to be seen. |
| 00:37:34.06 | Unknown | times two. |
| 00:37:41.38 | Unknown | Thank you. Thank you. |
| 00:37:43.41 | Unknown | Thank you. |
| 00:37:43.44 | Unknown | Thank you. |
| 00:37:43.47 | Unknown | Jameer? |
| 00:37:43.49 | Unknown | Thank you. |
| 00:37:43.53 | Mayor Kelton | THE END OF THE END OF THE |
| 00:37:43.58 | Unknown | I'm going to be a |
| 00:37:43.96 | Mayor Kelton | Thank you. |
| 00:37:44.47 | Linda Beach | Thank you. |
| 00:37:45.60 | Mayor Kelton | Yes, you want to speak? Yes. |
| 00:37:47.81 | Linda Beach | Yes, I'd like to comment. So I'm very familiar with the problems of the abandoned boats and the cost associated with it and some of the sagas of the court battles, et cetera, and I understand it's definitely a real problem. I'm concerned that for our presentation, we've learned that the number of vessels has grown from 130 to 160. 57 to 75 salvage vessels. Um, you know, there's a need for money for cleaning up and, um, You know, it seems to me that we have a really urgent problems with environmental repercussions And because we can't control the current situation and it could continue to explode in terms of and so I am looking forward to and encourage the RBI RA to continue exploring opportunities, solutions. Perhaps it involves new legislation. Perhaps it involves seeking grants from environmental organizations, Uh, non- organizations. because we definitely have a serious problem, and it is impacting the environment. |
| 00:39:06.57 | Unknown | Thank you. Thank you. |
| 00:39:08.17 | Unknown | Yes, thank you. Well, I would like to see the RBRA use more police force, if you will, to deal with the problem. I know our current police department is involved with the |
| 00:39:08.20 | Unknown | Yes. |
| 00:39:29.32 | Unknown | is reaching out to the people who live there, but I don't know how much they're involved in the Um, Thank you. policing of the RBRA area. Um... And I also believe that, you know, RBRA needs to be a little more creative if what they're doing now has not worked for the last 10 years and each year they get rid of 50 boats, then we should look at another way of operating and part of that I think should be considering auction and if you put votes up for auction you're going to find out who the owner is right away. And Also looking at how maybe the Army Corps of Engineers can help. and the last thing is a mooring field I really do not think that a mooring field is going to solve our problem the anchor outs are not out there because they want to conform with laws they're out there because they have their own way of doing things and I doubt very seriously that they are going to tie up and use Thank you. and Anchorage. and more rich feel. So, In addition, there will always be those who store their boats out there. So the only thing I see that we're doing with the mooring field is simply bringing more boats to the Richardson Bay area. And that's not what we want to do environmentally. And heaven knows we've got enough marinas here in Sausalito as it is. So I am not in favor of giving any more money to this operation until we get some more creative thinking and police help. You're getting sick? |
| 00:41:27.54 | Unknown | Yeah. |
| 00:41:27.76 | Unknown | Thank you. |
| 00:41:27.88 | Unknown | Thank you. |
| 00:41:28.06 | Unknown | It's just humorous. But anyway, so you have to pay for what you want to have happen. And if you have ideas, I'm sure they'd love to hear them. But given the limited, all the state, basically the budget is funded by state grants to Um, Not salvage, but demolish the derelict boats that are out there already. and to save in the case of a bad winter when we have a lot of storms, to deal with the aftermath of boats that get swept off their anchors. So, That being said, I think starts contributes $35,000 compared to $10,000 from Tiburon. So again, it's all state grants that fund these programs. And they've been very good at getting limited resources. As we know, the state has taken a lot of money out of the boat and waterways budget over the years. rightfully or not rightfully so. the Okay. The reality is you get what you pay for. As far as the mooring field causing the economy, has created a lot of abandoned boats because there is A lot of people keep their boats out there who just can't afford to dock them anymore. But you can ask a marine owner and find out. It's very difficult for a marine owner to get rid of a boat after they stop paying. It's a lot of money. It's a lot of cost. And then to go to auctions is even more costly than you'll get for the boat. |
| 00:42:43.99 | Unknown | Okay. |
| 00:42:44.42 | Mayor Kelton | Any other comments from anybody? Okay, I'll just say this. I commend Jennifer Tejada for what she's been trying to do out there. It's particularly with the resident population that's on the boats. And, you know, I'll echo what I heard up here is, and what I heard from him, and I've known since I got on the council, is it's money, money, money, money, money. There's no money. Nobody's contributing enough money for them to take care of all the boats that are out there. given that they've done a remarkable job i think of keeping the population where it is because we are the dumping ground for the bay and it's an unfortunate thing the state needs to step in maybe some more grant money we'll try but i think the staff has done a very fine job and i commend them all for their efforts All right, we'll move on to item 6B, which is the former 6C, approval of labor negotiation contracts. There's two parts to this. Part one is a resolution approving memorandum of understanding between City and Service Employees International Union, SEIU, Local 21. And part two is a resolution establishing compensation and employee benefits for unrepresented employee groups for a period of 2012 to 2015. Both are three-year contracts. Troy? Thank you. |
| 00:44:04.33 | Jonathon Goldman | Thank you, Mr. Mayor, members of the City Council. Um, Tonight we're going to review the 2012-2014 negotiating strategy and then the action being requested of the City Council is to approve an MLU with SEIU employees and a resolution setting wages and benefits for unrepresented employees. The borrowing, rehearsing a slide from our back to the basics budgeting, which you haven't seen because I thought it was going to go first. is that One of the goals and objectives in the 2012-14 budget is to align the cost of labor with revenues. I want to just through this presentation tonight, focus on answering three questions that come from this sentence, aligning the cost of labor with revenues. What does align with revenues mean? What does it mean? What are the costs of labor? And then how do we do this? How are we proposing to do this? So to answer those questions we started off with looking at our salaries and benefits were 73% of our fiscal year 12 expenditures and 49% of those was salaries and 24% is benefits. Or another way of looking at it, almost 68% of salaries and benefits, total compensation with salaries and benefits were about 38%. 32%. So when I say align with revenues, we're not looking at aligning with the expenditures because in most service organizations, 70 to 75% of expenditures are usually personnel related. But it's better to align your labor costs with your revenue streams so that you make sure that your labor costs and your revenues are going up at the same speed and you your delivering services to citizens. So when we look back over time in 2006 to 2012, we found that our costs of labor, salaries and benefits as a percentage of revenues has gone between the 65 and 70 percent range to over the 70 percent range and that by industry standards is approaching unsustainable levels. And so the city then said well that we need to align, better align these costs of labor with revenues. How do we get them back to the 65 to 70% range? And part of the reason that's driving this is our revenue costs are increasing at a slower rate than our labor costs are increasing. Now, we don't want to do what other cities have done in the past and that's just either grow new revenues or raise new revenues to bring the cost, the relationship back into balance again because if you just purely increased your revenues you would lower that percentage. But that's what calls for unsustainability. Usually the only way you can grow revenues or raise revenue are through elastic type taxes that are responding to the economy. So you don't reach a sustainable position but you reach one where severe fluctuations in the economy can drive cutbacks in labor and thereby affect levels of service to citizens. So the next thing we looked at is answer the question, what are the costs of labor? And there are two components of compensation, one being salaries and the second being benefits. And what this graph is depicting is that the salaries as a percentage of compensation is decreasing and the benefits costs are increasing. This doesn't help the employees nor does it help the city because the cost of labor going up at the employees not getting any realization of that benefit. And it's just simply costing the city more to keep the same employee doing the same work. uh, And so there needs to be an alignment between the salaries and Thank you. benefits and the next benefit of course is what's driving those costs and we see in this graph that the two primary costs of benefits that are going up are your pension costs and your health care costs. Pension we knew are going up primarily as a result of the impact of the 2009 stock market crash and following recession. |
| 00:48:36.17 | Jonathon Goldman | up. |
| 00:48:36.62 | Adam Politzer | my way. |
| 00:48:37.11 | Jonathon Goldman | So the city then developed that as we go into these negotiations, the first element of negotiations is planning. Gathering information. We did MOU analysis, budget analysis, salary, pen events. We analyzed, we did OPEB studies, pension studies, classification and compensation studies. We gathered through a process that took almost a year, was two years in planning to get to this Gantt chart where we collected all the information that we needed to see what lessons can we learn from the past what lessons can we learn from what other cities did right what other cities could have done better what are competitive labor packages that are out there now but still accomplish are shifting our labor costs lower so that they're back in that 65 to 70 percent range. And we then calibrated our targets. We looked at what's our current state of our labor costs in different categories and what's a sustainable state. And then that became the interest, the targets for our negotiation of each one of those categories so that we could align the cost of labor with our revenues. So here was our approach. We set a goal. The goal was to reach an agreement that sustains the city's current level of service means Continuing with the excellent level of service that citizens of Sausalito received, with a productive, effective, and content workforce. because the workforce and service organization is who delivers that. Our objectives then became to value the city's commitment to their current employees. And we entered into a contract relationship with employees when they started. And we needed to acknowledge that without retention and if we don't minimize turnover that there's an added cost to the city. So we wanted to value our employees but at the same time we need to recognize the need to lower the cost of labor and we had to develop a second tier of employees. So the strategy was a four prong strategy where we looked at wage and salary reform. We looked at pension reform. We looked at OPEB reform and we looked at health care reform and we went into interest-based negotiations. Interest based negotiations with the objective or the strategy of achieving wage and the optimum balance of wage and salary reform, pension reform, OPEB reform and those uh... negotiations uh... talk about separating the people from problems and What this involved was walking a mile in other people's shoes. We asked the employees to walk in the city's shoes. We showed them what the revenue trends are, what the expenditure trends are. We shared with them all the data that came from the studies. And they turned around and they asked us to walk a mile in their shoes. They've gone two years without a pay increase. Rents have gone up. Gas prices are going up. We talked about the factors of the job, what's going into delivering the service, how they're being asked to do more with less and how we have less to give them. So when we walked through sharing that, we came to an understanding that we needed to focus on our interests and not positions. You know, positions are predetermined, Um, they may not be easily satisfied. And it's extremely rare case when all positions are fulfilling to all parties satisfactions. But when we talk about interests, these are needs that can often be met to both parties satisfaction. And we did that by inventing options for mutual gains. The discussions that we went into are suppose. Suppose if we agreed to this that you would do that. And we talked about, we asked questions designed to elicit solutions, not questions to solidify positions. We kept as many options open as we could as we walked through the negotiations. We didn't make judgments or comments regarding opinions. Finally, we insisted on objective criteria. We said, here's criteria that we found in our compensation study, in our classification study, when the bargaining unit would come up and say, all such and such city is doing this and we've never seen that anywhere else before. Well, let's refer to objective criteria. So we referred to our compensation study and said, well, in this case, this city is doing that. And then we talked about the impacts and outcomes of that. We referred constantly back to our actuarial studies, our Bartell reports about the impacts of tiered and the cost savings from a tiered pension system. And we especially referred to our OPEB costs and our OPEB studies and getting some of the outcomes that we got. So here's our negotiated results. Our negotiated results is we achieved many of our objectives, but we did get all of, we got reform. We got form in all key areas. Wasn't the optimum reform. but it's the whole package is something that was unanimously accepted by SEIU and I'm asking for the council support for unanimous support tonight too even though we recognize there was other things that we would have liked to have gotten better. First of all, wage and salary reform, we lowered starting wages by 10% by lowering two lower steps to the existing step salary range. This is significant because as you know, salaries are the basis for how compensation, other benefits are calculated. So if you have a step five, a current step five employee leaving today and replaced by a new step one employee, that's a 35% lowering of the salaries that the city would be basing the rest of their compensation on. Second thing we got was OPEB. OPEB for the audience sake is other than pensions, post employment benefits. This is the health care benefit that employees receive when they retire from the city of Sausalito with 20 years of service. So we had two kinds of reforms there. Existing employees, any employee with three years or less service, they agreed mandate they agreed in there in the SEIU agreement to give up their other post employment benefit and can switch to a defined contribution program. We also are going to offer an option to employees with greater than three years of service to switch to a defined contribution plan rather than a defined benefit plan. And for those employees who are very unlikely to stay here. They probably will. This will significantly reduce the city's OPEB liability and its annual, what's called an ARC, an annual required contribution to a OPEB plan. And then we eliminated all OPEB for all future employees. So this is significant OPEB reform. In pension reform, current employees will start paying a portion of the employer share. current SEIU employees are already paying the employee's share for pension costs, which is 8%. The city pays the difference, the actuarial calculated difference of what's needed in the pension plan. Here the current employees will start paying what's called FAC1. FAC1 is a surcharge that's put on the employer's cost for the employee to receive compensation based on their final annual compensation of one year, where the typical standard is final average compensation of three years. So in this case, it represents about, for SEIU, it was 6%, I think, 0.6, pardon? |
| 00:56:31.11 | Unknown | Point C. |
| 00:56:31.72 | Jonathon Goldman | 0.6 percent, yeah, okay. The current employees will be paying that through payroll reduction, thereby reducing the city's employer share cost. Now future employees are going into a whole new pension tier. Current employees are in a 2.5% at 55 pension plan with the final average compensation year being one year. But the new employees will be going into a 2% of 55 program, which is the second lowest tier that CalPERS offers. And then finally, We have a severability clause in the SEIU agreement that if the state and that's additional pension reform the SEIU agreement can be opened up to meet and confer and talk about further pension reform during the lifetime of this three year contract. In healthcare reform, we asked for and SEIU agreed to, to cap the employer's share of medical healthcare premiums at 90% of the Kaiser health plan for future employees. And again, there's another severability clause if the federal government or the Supreme Court in the next few days, firms and enacts significant healthcare reform that relieves obligations from city, then we can open up the contract and talk about implementing that. So after discussion with the city council, I ask the city's council support and staff recommends that you approve the SEIU memorandum of understanding and you also adopt the policy resolution establishing wages and benefits for unrepresented management and confidential employee. I just follow up. City does not negotiate with management and confidential employees because they're unrepresented. You don't negotiate with someone who's represented. But typically this city council has always linked management and confidential employees compensation with SEIU's compensation. And the resolution in front of you tonight mirrors that policy. And that concludes staff reports. |
| 00:58:46.01 | Mayor Kelton | All right. Questions of staff? |
| 00:58:49.98 | Unknown | Thank you. |
| 00:58:51.33 | Unknown | Charlie, I'm going to flip back to the slide with your Gantt chart on it, because I think there's a lot of things in there that have, no, you went too far, there you go, that have, over the course of, you know, over a year, |
| 00:58:59.97 | Unknown | Thank you. |
| 00:59:07.39 | Unknown | been developed that have both at the time as well, in terms of compensation levels or classification levels is a better word for it. |
| 00:59:15.00 | Ben Berto | in the middle. |
| 00:59:16.17 | Unknown | that have also played a role in sort of reducing or really clarifying the city's obligations to employees. And so maybe you could hit the highlights of some of the things that you've done that you and other members of staff have done in the last couple of years. So people understand it's not just the contract negotiation at the very end. There's a whole line of effort and working with the union and the employees along the way. |
| 00:59:28.18 | Jonathon Goldman | status. |
| 00:59:28.62 | Unknown | Thank you. Thank you. |
| 00:59:30.11 | Jonathon Goldman | and |
| 00:59:40.11 | Jonathon Goldman | So the first item up here is the OPEB study. And the OPEB study is a triennial study that is performed under accounting standards to calculate the actuarial liability to the city for employees being able to retire with medical coverage after 20 years of service with the city. This was a longer process than we anticipated because when we started going into the demographics of our workforce and questioning how some of the actuarial figures we found a mistake in the actuarial figures so when Doug was here he had to go back and recalculate and we ended up with a liability lower than what had been calculated three years before. And so that was shared, but it's still a liability on the city. I also in that presentation that we made to the city council demonstrated how there's a gradual putting into the financial statements, the amount of the OPEB liability. But when we put the statement of net assets of the city on the screen, I inserted the OPEB liability and showed that even if we recognized although we're not required to recognize if we recognize the full OPEB liability we still had $35 million in net assets to cover that OPEB liability. So it's but it's still a liability that can be mitigated and we then were able to say to segment our workforce and say here's the workforce that we can address significant reform to and here's the segment of of our workforce that we're gonna be stuck with the higher liability for a while and we went forward with that. The classification and compensation study were actually two studies. One was our people, The work that they're doing, is it classified as the correct work and are their position titles correct? And this helped us identify three positions that the classification needed to be changed. And there was about 12 positions, I think, where the titles needed to be changed. And finally, the compensation study demonstrated some peculiarities of our compensation where our salary was a little bit higher than the market, and our benefits were significantly lower than the market. But when they compared the market, they weren't comparing the market to all the reforms that the city, other cities are doing today. So by lowering our salaries, bottom two steps, 10%, we're adjusting the salary part. The benefit part, many cities are trying to get to where we're at today in the second tier pension or where we're at with our OPEB. We're going beyond what other cities are at today. And I think if we didn't do this reform, we would have a sustainability issue. We demonstrated with our labor costs being almost 75% of our revenues. Other cities are just trying to get where we're getting to. They're gonna have a sustainability problem if there's another fiscal exigency. We'll become resilient because we're taking the steps today to meet those challenges of the future. CalPERS pension analysis, we've had three years now of Bartell report coming up here analyzing the impacts of the different tiers of pensions on the future showing That when you tier a workforce, unless you change the salary part of it, you get very slow and incremental change. benefit from that second tier in the early years. We accelerated that benefit in the early year by having the new salary 35% less than the old salary. And then of course we aligned all of our MOUs together and we developed an outcome strategy. And we've been working very close with the city council at every stage of the way during the negotiation process. |
| 01:03:49.41 | Unknown | One last question. So Charlie, my understanding is that, as you said, the package that you've sort of put together and negotiated and gotten acceptance from the SEIU, |
| 01:03:49.98 | Unknown | since. |
| 01:04:00.07 | Unknown | is really very different than what has been happening both throughout the county and really throughout most of the state. I think I've only been able to find one other city that's been able to create that lower tier salary level, entry salary level. |
| 01:04:13.81 | Unknown | And... |
| 01:04:15.28 | Unknown | I forget who it was. It was like San Diego or something like that. I think it was. But I think they're not where we are on the pension side in terms of the two at 55. So I mean, it's really, you know, you're ahead of the game here. Surely there's more to do in cycles going forward, but it sounds like to me what you're doing, my question for you is based on talking to other communities and what's been happening here in Marin, maybe you can share some light on what other cities in Marin have done compared to what we're doing in terms of changing labor costs. |
| 01:04:49.45 | Jonathon Goldman | You know, there's a little story behind that. It's a history of what happened during the recession. During the recession, as the council knows, we honored our labor contracts, and in the past two years, we went with no salary increase and no takeaways for the past two years. Other cities weren't able to control their revenue streams or control their expenses with the same discipline, and they had to take more severe actions. They enacted furloughs, they had layoffs, they had salary takeaways sometimes five more percent and they of course didn't fill positions. So now when you look at the newspaper in Marin and you see San Rafael or the county giving pay increases. Well, they're just making up what employees lost over the past three to four years. Our employees stayed the same the past three years and now we're implementing reform. In comparison, our package is fair to our current employees. It makes as the unanimous acceptance demonstrates, it shifts the labor costs with new employees, but it also enacts the kinds of reforms that will help us be resilient in the future. That's, I mean, I can't give specific examples. Adam might wanna chip in. |
| 01:06:12.84 | Adam Politzer | Just wanted to add in terms of the pension reform, in terms of the employees paying their 8% for SEIU employees or 9% for police employees, the cities are negotiating that they will give either a percentage of that in terms of salary increase for exchange for the employee paying their share. In some cases, cities are negotiating that over a three-year term. So to get to 8%, they may go with some combination of 3, 3, and 4, or 3, 3, and 2, but with increases to pay to match it so that there is a neutral effect and as Charlie just shared with you, if they've had reductions or furloughs, they're just getting back to where they are. So on the employee, there's really still a net loss of multiple years. So, you know, most of the cities are trying to shift to their employee paying their share, but there are different formulas over a different period of time for them to get to their employee paying their share, but there are different formulas over a different course period of time for them to get to those points. |
| 01:07:24.19 | Unknown | And was this the initial proposal to the union, this one that was ratified unanimously? |
| 01:07:32.48 | Jonathon Goldman | Well, as in many negotiations, the city started out with a number of interests that they wanted to negotiate to and the union was and we're about like this. And as we negotiated through the process, there was a coming to the middle. |
| 01:07:43.67 | Ben Berto | Mm. |
| 01:07:43.97 | Unknown | Thank you. |
| 01:07:49.45 | Jonathon Goldman | I think both sides would like to say they moved further or moved less than the other side. So when SEIU talked to their group and got a unanimous approval, they talked about theirs. But the package accomplished what the city was after. And that was the ability, the capability now to shift its labor force, its labor cost downward and have a sustainable budget as we go off in the future. |
| 01:08:16.59 | Unknown | That shifting resulted in sort of, you were saying, the 75% before what's the end? |
| 01:08:23.15 | Jonathon Goldman | The, yeah, the, the, the, the, I would say by doing this in the first and second year and we usually have an attrition rate of two employees per year. Then within the next five years, this cost of labor should go down into the 65% range. where we want it to be. |
| 01:08:44.11 | Mayor Kelton | Okay. Questions? Council Member Ford? |
| 01:08:48.36 | Linda Beach | and Mr. Mayor, I have a question. |
| 01:08:49.60 | Jonathon Goldman | . |
| 01:08:50.81 | Mayor Kelton | Okay. |
| 01:08:52.99 | Linda Beach | So, Charlie, you mentioned the severability clause. that is state the state changes. anything regarding pension reform, Sausalito can Inter negotiations begin at any time during the three year cycle. And I want to ensure that this is not just a Sacramento legislation-driven Bye. issue regarding our ability to separate to, um, SEVERE. that, for example, if a city goes to court and wins, And It's a precedent. That software can then take advantage of that with regards to the severability clause. Just wanted to confirm that. |
| 01:09:36.80 | Jonathon Goldman | I'd have to look at the language. |
| 01:09:40.14 | Unknown | Thank you. |
| 01:09:40.19 | Linda Beach | you |
| 01:09:40.24 | Unknown | Thank you. |
| 01:09:40.29 | Linda Beach | Thank you. Okay, so. |
| 01:09:42.82 | Jonathon Goldman | Yeah, I believe the language in the severability clauses, the state enacts legislation that allows pension reform. |
| 01:09:50.47 | Mayor Kelton | which is the only place that it can come from |
| 01:09:52.73 | Jonathon Goldman | Thank you. |
| 01:09:52.74 | Mayor Kelton | Thank you. |
| 01:09:52.76 | Jonathon Goldman | Yeah. |
| 01:09:52.94 | Mayor Kelton | Thank you. |
| 01:09:52.96 | Jonathon Goldman | Thank you. |
| 01:09:52.98 | Mayor Kelton | you Yeah. |
| 01:09:56.24 | Linda Beach | So, okay, that's a concern to me, but anyway. Thank you. |
| 01:10:02.35 | Mayor Kelton | Okay, any other questions? All right. Thank you, Charlie. Any members of the public wish to speak on this issue? All right, seeing none, we'll bring it back up here. Um, Yes. |
| 01:10:18.56 | Unknown | Yes, Mr. Mayor. |
| 01:10:23.59 | Unknown | I first want to say thank you to the staff members who negotiated with the unions. for the contract concessions and I think that the OPEB savings long term are significant. However, I don't think that the pension reform is significant and I don't think it's sustainable in the long term. And I think it's unfair to our employees to not make it so. There's a wonderful article in the IJ, Sunday's IJ, written by Larry Chu, who's on the Larkspur City Council, regarding how we got where we are today. And it's very eye-opening if anyone here or in the public watching this is interested. But CalPERS is in trouble. And what we are doing is we're relying on their numbers. And the governor has that California has called it a Ponzi scheme Um, with good reason. CalPERS is using a rate of return of 7.5% which does not give us a true figure as a city of our actual... Thank you. liability of our costs for pensions. CalPERS will have to declare its debt with the new GASV rules. in the near future. And when it does, we're going to be in for a big shock. So, Salido's liability loomed at 40 million a couple years ago. And I don't think we've had an update since then. But that was with CalPERS figures at 7.5%. And I believe... Well, I I commend the team. I simply have a different take on this. I think that we need to establish a defined contribution program, and we need to do it now. The second tier needs that. That's the only way we're going to get away from CalPERS and have control. of our pension costs. I think it needs to be a hybrid program. I do not want to see the employees lose their uh, defined contribution or defined benefit program you know, all at once. But I do think that we need to introduce that. Vallejo's gone bankrupt, Stockton's gone bankrupt, there are other cities who will be going bankrupt as well. have no comfort when I'm told that the cities in Marin County have not done any better than we have because we're lining up for bankruptcy as well with the system. |
| 01:13:37.37 | Unknown | Okay, thank you. You coming, John? |
| 01:13:43.63 | Unknown | Thank you. |
| 01:13:44.88 | Unknown | Thank you. |
| 01:13:44.91 | Mayor Kelton | Okay. |
| 01:13:45.90 | Unknown | I definitely better not. |
| 01:13:48.71 | Mayor Kelton | Linda, do you care to make a comment? |
| 01:13:50.97 | Linda Beach | Yes, thank you, Mr. Mayor. I'd like to comment. I do also want to thank city staff for pursuing the changes that will help us in Saucido's budget. We're facing millions in liability. I appreciate the OPEB reform, the second tier for new employees, the new salary levels for new employees. Um, I am. Very concerned. that we have an opportunity with regards to the defined contributions. And that I, And, that's going to be a little bit. that we were not able to it's not I am also very concerned with Councilman. continuing to use the unrealistic discount rate that they are you're saying in their evaluation. And I have concerns for the future and are. Fiscal stability moving forward. I'm also concerned with regards to the credibility clause I know that... Thank you. Amen. level for the disability clause to focus only on state legislation. Yes. Thank you. Thank you. is Insufficiency. In my mind. I know that even Governor Brown has made comments that a lot of change. but, emerge at the level. from the city. And in fact, that's really where we've seen most of the change coming. We've seen cities fighting I'm not sure. for attention reforms in the courts of stating and So I would like to see any severability clause. allows us to take advantage of in a new pension reform that came out of a court. ruling. from a city because otherwise the three-year cycle is just too long. And finally, I think we owe it to our employees. to do everything we can to Uh, Okay. This dates for a stable future for our current and our future employees. I value our employees for their talents and expertise, and I just, When I look at the numbers, I just remain concerned. |
| 01:16:39.11 | Mayor Kelton | Okay, thank you. I, you wanna say something? you |
| 01:16:45.71 | Unknown | Thank you. |
| 01:16:45.77 | Mayor Kelton | Bye. All right. As in anything, as in every labor negotiation, it is a negotiation. It is not a one-way street that one person can force the other person into a subservient position. It's not the way it works. Um, We go in with our list of things, they go in with their list of things, and we try to get as much as we possibly can. But the art of compromise, the art of compromise is what drives our country, is what drives negotiations at every level in our country. And we only need to look at Congress once in a while and see when they can't negotiate They make stupid mistakes. They make stupid law. And we're not stupid here in Sausalito. We're very smart. We've got a tremendously smart staff. We've got a bunch of smart employees. And everybody knows the drill. We have worked hard to get a very good reform going here in South Dakota. Perfect reform? No. Could we do better? Well, we tried, but we got it down. We made a step in the right direction. We'll make another step next time around in the right direction. And eventually, we hope the federal government and the state of California and other jurisdictions come up with some sustainable way of making pensions work. And that's a problem that's going to be wrestled with at every level. Right now, We have CalPERS and CalPERS, we cannot leave it. We cannot leave. Also, the employees who are getting their pensions now, By law, we cannot leave. |
| 01:18:15.20 | Unknown | We cannot leave. |
| 01:18:17.03 | Mayor Kelton | We have to pay the $45 million that Council Member Ford alluded to. We can't get away. Also, our employees are protected by state law. Their pensions cannot be invaded. We cannot take away their pensions that they now have. All we can do is do exactly what Charlie did, which is to add two levels down below and make those two levels a new tier where new employees coming in get a lesser benefit, a different benefit. So it's a fine program. It's been well negotiated. We've done an extremely good job. He's kept the council apprised of it all through and has been willing to meet with anybody who wants to talk about it at any time. And so I think this is a program that we can be very proud of, and it will be the best in Marin County. despite the fact that it might not be the best program that one could dream up on a Saturday morning, but probably couldn't get anybody to agree with. So that's my two cents. You want to say anything? |
| 01:19:13.99 | Unknown | Yeah, I mean, we're not a charter city, so as far as what San Diego and San Jose have done in terms of putting it on the ballot and then having it challenged in court, We don't have the capability of doing that. Under state law, we are under a different set of realities. And so that's where the change has to come from. And that's where you need to talk to your state representatives and drive them in the right direction to to give cities the freedom to operate on their own basis to a certain degree. Because it's a larger problem than South Dakota can solve alone in terms of the state laws changing. So it's really going to come from the people. But as far as replacing defined benefit plans with defined contribution, We've done that on the OPEB reform and the other benefits, post retirement benefits then attention. We certainly tried to get defined contribution plans and a variety of things including pensions for new employees But as Mike said, we go in with our list. The other side always goes in with their list, and we try to get to something that is meaningful. reform on a cost basis, and this is. Anytime you can drive your labor costs down 10%, over three years. in a time where great economic uncertainty, that's an accomplishment. Um, The other thing to keep in mind is it's not like buying a car you got it people across the table show up the next day. You leave the car dealership, you can hammer them to hell and be gone. You don't have to see them again unless your car has problems. Here you want to have a motivated staff. that has been doing more with less resources, you've got to treat people well. That's how you keep talented people, you Thank you. And they've agreed to take some sacrifice to benefit the populace. And that is a great thing. I acknowledge their contribution there. Because they see the problems that are structural in nature. not just here, but across the union as well. It's kind of gotten the picture in this go-around. And so they've worked with us. Could we have gotten more? Would we have liked to have gotten more? Those are always ifs and buts. But we've gotten as much as we can get and still have a motivated workforce that can afford to actually come here and work. And that's the other thing you have to keep in mind. I think we've done a great job. There's always more to do, and there will be more to do if there are legal changes, as well as at the end of the cycle, which we'll probably start having to work on the next cycle in a year or so. So nothing stays the same, but at the end of the day, As Charlie said, the biggest cost is your salary levels that drive all these other costs. And by creating this second tier, two lower tiers of employees coming in, you've really collapsed the growth in salary increases over for the future during this contract. |
| 01:22:04.02 | Unknown | Okay, does anybody care to say anything else? you |
| 01:22:06.32 | Unknown | Yeah, I want to really thank Adam and Charlie for doing . a real great job negotiating on labor is always a very, very difficult thing. It's very important that you hold together your labor so you don't turn your labor into a disgruntled employees. The idea is to I think you've done very well. I think you've got a bargain. There's some people that want you to make a steal. but, When you're dealing with labor, I think the most important thing is that when both sides walk away from that table. that they're willing to. accept that and move on and really do what's best for this city so thank you |
| 01:22:58.80 | Mayor Kelton | Okay. Thank you. |
| 01:23:00.10 | Unknown | Yes, Mr. Mayor. One minute. I would like to say that, first of all, hope is not a method. |
| 01:23:01.38 | Unknown | One minute. |
| 01:23:07.66 | Unknown | I don't think that we can rely on the state and the feds to make our changes for us. We are unsustainable. We need to address it ourselves. Already the state legislature is going against Brown's recommendation. So there's an example for you. We can and we should control. our spending locally and we must at some point institute a defined contribution and we're that we're taking anything away from current employees here. I too want happy employees. I value our employees and I value um their being happy at work. But what we can do is we can set up a second tier for the future with a defined contribution program so that new employees Bye. are Thank you. |
| 01:24:07.58 | Mayor Kelton | Thank you. |
| 01:24:07.61 | Unknown | using that. |
| 01:24:07.66 | Unknown | Thank you. |
| 01:24:07.83 | Mayor Kelton | Yeah. |
| 01:24:07.90 | Unknown | Thank you. |
| 01:24:07.92 | Mayor Kelton | using it. Thank you. |
| 01:24:09.15 | Unknown | . |
| 01:24:11.19 | Mayor Kelton | All right. Okay. Anybody want to say anything else? I think it's all been said. Yep. All right. Members of the public comment, we're through that. We're ready to have a motion. Can I get a motion? |
| 01:24:14.68 | Unknown | So, |
| 01:24:15.76 | Ben Berto | Yeah. |
| 01:24:25.62 | Unknown | So Yeah. |
| 01:24:26.60 | Mayor Kelton | That's easy enough. |
| 01:24:26.61 | Unknown | That's easy enough. How many motions do you have? |
| 01:24:29.03 | Unknown | I'm doing those. |
| 01:24:29.87 | Mayor Kelton | you |
| 01:24:30.02 | Unknown | Thank you. |
| 01:24:30.11 | Mayor Kelton | We need a resolution approving the memorandum of understanding between the city and service employees international union SEIU local 21 So say so moved |
| 01:24:30.97 | Unknown | Yeah. |
| 01:24:31.04 | Unknown | I need a resident. |
| 01:24:40.22 | Unknown | Now I can't succeed. So moved. Okay, second. |
| 01:24:40.33 | Mayor Kelton | Now I can't. So moved. OK. Seconded. Thank you. Moved and seconded. Debbie, would you call the roll? |
| 01:24:48.89 | Unknown | Councilmember Ford? |
| 01:24:49.87 | Unknown | Thank you. |
| 01:24:49.89 | Mayor Kelton | . |
| 01:24:50.04 | Unknown | Hello. |
| 01:24:51.83 | Unknown | Council member Weiner? |
| 01:24:53.04 | Unknown | Yes. |
| 01:24:54.95 | Unknown | Council Member Pfeiffer? No. |
| 01:24:59.18 | Unknown | What else? |
| 01:25:00.04 | Unknown | Vice Mayor Leon. |
| 01:25:01.83 | Unknown | Thank you. |
| 01:25:01.85 | Mayor Kelton | Thank you. |
| 01:25:01.88 | Unknown | Yes. |
| 01:25:01.97 | Mayor Kelton | Yes. |
| 01:25:03.23 | Unknown | Van Kelly. |
| 01:25:04.06 | Mayor Kelton | Yes. Okay, now we need a resolution establishing compensation and employee benefits for unrepresented employee groups for July 1st, 2012 through June 30th, 2015. |
| 01:25:14.94 | Unknown | So moved. |
| 01:25:17.22 | Mayor Kelton | Thank you. |
| 01:25:17.29 | Unknown | Wait a second. |
| 01:25:17.95 | Mayor Kelton | Thank you. |
| 01:25:17.97 | Unknown | Debbie, would you call a roll? |
| 01:25:22.47 | Unknown | How's number four? |
| 01:25:23.50 | Unknown | No. |
| 01:25:23.84 | Unknown | Thank you. |
| 01:25:25.24 | Unknown | Council member Weiner. |
| 01:25:26.57 | Unknown | Thank you. |
| 01:25:26.60 | Unknown | Yes. |
| 01:25:27.01 | Unknown | you |
| 01:25:28.11 | Unknown | Council Member Pfeiffer. |
| 01:25:30.49 | Unknown | Thank you. |
| 01:25:30.69 | Unknown | Thank you. |
| 01:25:30.72 | Unknown | Bye. |
| 01:25:30.76 | Unknown | Thank you. |
| 01:25:30.77 | Unknown | Yeah. |
| 01:25:30.79 | Unknown | Thank you. |
| 01:25:32.04 | Unknown | Advice, Merrileon? |
| 01:25:33.41 | Unknown | Thank you. |
| 01:25:33.42 | Unknown | Yes. |
| 01:25:33.91 | Unknown | Thank you. |
| 01:25:34.39 | Unknown | Mayor Kelly. |
| 01:25:35.04 | Mayor Kelton | Yes. All right. Let's move to item 6C, which is adoption of the 2012-2014 budget. Charlie, keep this as brief as you can. We're on a time schedule tonight. |
| 01:26:18.87 | Unknown | of. |
| 01:26:23.24 | Unknown | Okay. |
| 01:26:32.48 | Jonathon Goldman | The agenda for presentation of the 2012 through 14 resource allocation plan. We're going to talk a little bit about fiscal strategy and strategies. Then we'll go into a city summary. Move into the general fund, which is the major accounting activity for providing services to the community. Talk briefly about other funds and then request council action. There's three council actions being requested tonight in adopting the budget. First, I'd like to take a picture of our fiscal condition from 2002 to 17. Of course, 2012 to 2017 is a fiscal projection. And 2002 to 2012 is the past. This blue area here, or gray in the chart, represents surpluses, revenues exceeding expenses in each of those fiscal years from 2002 through 2012. Um, Surpluses that were the result of fiscal strategies that were adopted annually and by implementing the budget. Now, I like to look at the past Also the passage shows we went from negative cash in 2004 to 5 to positive cash in our fund balances. And at our inflection point in 2012 we're saying that it came up, had a flat area and looks like it's going to grow again based upon implementation of these fiscal strategies. Now, why do I show the past? I mean, nothing, absolutely nothing can be changed about the past. It's over. It's gone. never to return. So why do we look back? Well, we look back because the past is a school. It's a school of how we got here. Uh, It gives us lessons. What went right? What worked? What has changed along the way? What we could have done better? And what did we learn in this school of history? From here to here, we learned that We can trust and back to the basics budgeting. The only way you can do more with less is by focusing on service to our citizens, commitment to our employees, capital investment and infrastructure, and paying attention to the bottom line. focusing on outcomes and results. Okay. And back to the basics budgeting is that with the successful annexation of the fire services, the next two hurdles for the city are to align the costs of labor with revenues and to align revenues with future required infrastructure investments. I say that again. It's so important. The next two hurdles are to align the costs of labor with revenues and align revenues with required future infrastructure investments. Now originally this presentation was going to precede what you just did. And this budget reflects aligning the cost of labor with revenues. This budget also includes activities that will help us align our revenues with required future infrastructure investments. Back to the basics budgeting means we went back to the strategic plan goals. What were those? The first two strategic plan goals were to first was stabilize and sustain the financial condition. I think the reason that was your number one strategic plan goal, because if you don't have a stabilized and sustainable financial condition, you can't achieve any of your other. strategic plan goals. Your second strategic plan goals was your commitment, the city council's commitment to its citizens, deliver efficient and effective services. These budgets, this budget is balanced based on those two foundational goals. First, in the short term, we want to maintain the quality services and the service levels. And if we can, improve them. We wanted wage, pension, OPEB, healthcare reform with a two-tiered workforce. This budget reflects paying down the fire and the miscellaneous Kale-Purcide funds. Another element that will significantly reduce the cost of labor because they add incredible cost to our pension costs. This will reduce them. infrastructure investment planning and revenue alignment with evolving municipal economics all in the short term will help align our budget for the medium term the next three to five years where we'll start to realize a continuation of the lower cost of labor through attrition uh... and through the securing of leases at the mlk facility will have the opportunity in the midterm to liquidate our frozen general fund reserves, which would then allow us to pay down our police caliper side fund and complete. That's the activity that completes the labor reform. and also look at capabilities and possibilities to restructure our operations. So these are our short term. that this budget addresses and our medium term goals in other words it's important to have medium term strategies when you adopt this budget today where are we going now the planning process is not just staff coming up with a recommended budget. It's a very collaborative process. It involves heavily the City Council, the City Council Finance Committee, the community, its citizens, all the City Council's committees. And we do that through, and the public, through mid-year budget reviews, budget policy reviews, strategic planning, priority calendar setting. All these activities go into a recommended to your resource allocation plan. So when you get to this Slay. Your eyes start to glaze over. You go, Charlie, you said all that, now I see numbers. How are these numbers reflecting of the important policy decisions I have to make? And I hope that we can address that a little bit tonight. These numbers represent the number of people who are going to be serving our citizens. They represent that the types of contracted services that we'll be buying in order to serve our citizens, in order to deliver, to make the community safe and make it healthy and make sure the police officers will arrive when you call. Recreation activities go on our libraries there. All these other funds, all these other numbers, these funds collect resources to be transferred to capital projects fund in order to deliver investment in infrastructure. These funds accumulate monies from different sources to pay off the various cities obligations. Our internal service funds accumulate monies to replace equipment or provide for workers compensation insurance and to pay other employee benefits and of course our enterprise funds except for sewer are basically how does the city use its property? It's old city hall, it's MLK and it's parking to generate resources and revenues that can be then transferred to the general fund. So these three properties are effectively managing these three enterprises are managing the city's property at a business level in order to optimize the number of revenue that can come into the general fund. And then of course our sewer fund is to provide for the collection of sewer and eventually distribution into the. into the treatment system. Our total city budget then for expenditures is $21 million net of transfers between funds and we have $17.8 million of revenues to cover that total. But the reason it's more is because we're spending resources that had been accumulated for investment in capital projects on those capital projects. are. So in our fiscal year 2014 budget is again numbers that represent policy decisions. But like we always say, what does this mean to me? So the first question is the budget balance? And the answer is yes, and it's balanced with surpluses. We'll demonstrate that tonight. Are there adequate reserves? And yes, there are adequate reserves for rainy day funds for unplanned emergencies. And how much will this cost me? Well, I'm not George Bush, but there are no new taxes in this budget. And in fact, this budget represents the lower taxes on the 2006 GEO bonds because we defeased the existing, some of these, $2 million of the existing defeased bonds with the monies remaining. Thank you. from the public safety facilities. Well, and then what services will I get? Well, here's where I go. We're going to get more police services. There's a higher level of service than there was in the prior year. The library is going to be open seven days a week with a full-time, not a part-time, children's librarian. Our robust recreation events, activities, and opportunities will continue as they have in the previous years our community planning well not only do the building inspection and the types of planning comes through the door every day but there's allocations for housing and historic preservation Our street paving, what an amazing program we've done there. Just to date, the past three years paved 61% of our streets. Jonathan Goldman is here to answer any questions on how many streets will be paved in the next two years. And then of course we have well managed operations. And then what does the future look like? Well, I'm gonna put that on a hanger until the end of the presentation. Balances budget. we've included in the proposed budget the labor agreements that you just authorized and we also put into the budget but not into the salary allocate and not into the position roster the expected. costs of the police labor agreement which is not negotiated at the present time. And we expecting a first year surplus of $111,000 and a second year surplus of $5,776. So the balance, the budget is balanced. Our reserves in the general fund at the end of two years will be at 78.7% of expenditures, 23% of that being highly liquid. In other words, it's cash in the bank. And the other percent is money that's inter-governmental. Thank you. inter-fund loan between the MLK fund and the general fund. Our revenues are generated primarily from taxes and most of those taxes are property taxes. These kinds of sales tax and TOT are more elastic and dependent on the economy. But in Sausalito they fluctuate within a band. They aren't as elastic as like a car sale, car lot, car. Thank you. |
| 01:37:43.30 | Unknown | Thank you. |
| 01:37:43.91 | Jonathon Goldman | What's a bunch of dealerships called? Carmel Auto Mall. You know, we're seeing some of these auto malls just completely devastate municipal economics during the recession. So our elastic revenues are dependent on an economy that visits San Francisco and then comes into Sausalito. The other financing sources primarily are transfers in from our parking fund. And then we have some fees that support these other revenue sources. And then we spend the money on 32% of the budget goes for police, 6% to library, 6% to recreation, and 37% on community activities and then internal administration. The city council, the city manager, the finance director, the IT department, and transfers out to other funds. We went through each department at our last council meeting, albeit it was pretty late. I have a slide for each department if you have any questions for the department head. And we can answer any questions as we go through for police. Re-implementing the reserve officer program and then there's an appropriation for sharing services with the Twin City Police Department for a part-time evidence technician. Would the council like to pause and ask? No. Thank you. |
| 01:39:15.88 | Unknown | Thank you. |
| 01:39:15.89 | Jonathon Goldman | Thank you. |
| 01:39:15.91 | Unknown | You done? |
| 01:39:16.67 | Jonathon Goldman | Okay, library services appropriation at 789,335 dollars. Our community loves our library and we've increased the children's librarian hours and Abbott was able to recover 46,000 dollars from the NorthNet library system which will pay for 100% of this increased children's librarian hours this year and a goodly percent of that children's librarian services for next year. He's reprogrammed sub hours, he's cut book processing and magazine budgets and he's increased our interlibrary loan service. |
| 01:39:17.06 | Unknown | Bye. |
| 01:39:52.93 | Jonathon Goldman | Any questions for? Our recreation department is stabilizing its revenues as a percentage of its expenditures to a healthy percentage there and the appropriation is 745,000. No increase in staff but continuing with the high level of activities events and Thank you. |
| 01:40:17.02 | Unknown | He was following you online because he just ran up there. |
| 01:40:20.03 | Jonathon Goldman | Bye. Yeah. I'm not. |
| 01:40:22.03 | Unknown | . Thank you. |
| 01:40:23.04 | Jonathon Goldman | Yeah. |
| 01:40:23.06 | Unknown | Thank you. |
| 01:40:23.24 | Jonathon Goldman | Yes. That's amazing. |
| 01:40:25.03 | Unknown | Thank you. |
| 01:40:26.09 | Jonathon Goldman | yeah we watched the baseball game to keep those |
| 01:40:26.11 | Unknown | Thank you. |
| 01:40:26.14 | Unknown | Yeah. |
| 01:40:26.94 | Unknown | for you. Thank you. |
| 01:40:29.18 | Unknown | I Thank you. |
| 01:40:31.22 | Jonathon Goldman | Thank you. Community development department is staffed with the same level of staffing expecting a similar workload as they had the current fiscal year with these dollar amounts of appropriations. And here's where I introduced the priority calendar because many of the items in the priority calendar are community development related. But the budget document that you have and that's going to be available to the public shows where it's appropriated or if it's appropriated and what department head or who is the project lead on accomplishing that priority project calendar item. |
| 01:40:32.68 | Unknown | Thank you. Thank you. |
| 01:41:10.61 | Jonathon Goldman | Engine Department of Public Works consists of two divisions engineering and maintenance. Engineering has this represents 183,000. We take half of the salaries of that and charge it direct to capital projects that they manage. And we can see that there's a substantial number of capital projects coming here. year with three years where we spent 11 million that point three million in the past three years in capital projects not counting the public safety facility and we have 3.4 million programmed for this current fiscal fiscal year 1213 and another one point. Six for the following fiscal year. Because the first year of a five year CIP becomes the capital budget for the one year budget. |
| 01:42:02.85 | Jonathon Goldman | Is red available? No. 585,000 continuation of the same level of service and transferring all of us into a thin client environment. And the administration of finance services is budgeted at the same level of service. With one exception, the city council had been in the past offered healthcare benefits. We still are offering access to the healthcare system. However, |
| 01:42:06.36 | Unknown | 580. |
| 01:42:31.56 | Jonathon Goldman | the premium for health care benefits the city council along with the labor packages said that they would not be eligible for those kinds of expense so there was a cutting of expenses in that budget. The non-departmental budget is showing a higher appropriation than normal and that's because we're transferring $1.4 million from the vehicle replacement fund into the non-departmental fund in order to pay off the fire side fund. We're also transferring uh, about 250,000 I think from the employee benefit fund into the non-departmental department in order to pay off the miscellaneous side fund. This again is part of that strategy to lower the cost of services, use the cost of labor. And you see that right here. All the other transfers and charges for retiree medical, legal services, audits remaining at the same level of services previous years. |
| 01:43:33.44 | Unknown | Mm-hmm. |
| 01:43:33.78 | Unknown | Thank you. I think the one thing that's important here is, you know, kind of get lost in the list here, is we're still putting money into the CIP fund from the general fund, which didn't happen... four years ago. It never happened before that. We're still putting money from the general fund into the capital budgeting fund. Apple improvement projects, you know, and that's because you have to. Because there's no way you can ever catch up unless you take money from one pot and put it in that big pot. You know, that's important to notice. I mean, there's a huge amount of things to do. Of course, you've got to prioritize them, but we're still doing that, even in these tighter budget times than we had a couple years ago. |
| 01:44:10.67 | Jonathon Goldman | Absolutely correct. How many cities can brag that they have a five year balanced CIP project fund? Most cities come up with here's our CIP wish list, but we have to find grants or we have to get loans or we have to do all these activities in order to accomplish it. So back to the basics budgeting. The last question of theirs, what about the future? And I wanna bring, come back to this, that I believe that we're facing a future that not only is sustainable and stabilized, but can become resilient. You know, we talked about the past and can't be changed. We talked about the future, but the critical point is right now, it's the present. It's infinitesimally small because the minute I speak, it becomes the past. But your action tonight is very, very weighty. This action tonight to adopt this budget sets the future of the city based on the principles of back to the basics based on the policies that you're enacting and staff moves staff recommends that you move to adopt the fiscal year 1214 budget. |
| 01:45:24.46 | Mayor Kelton | Okay. Thank you, Charlie. Any questions? Charlie? |
| 01:45:29.74 | Unknown | Yes, I have one question, and that relates to the MLK. The MLK lung being listed as a reserve, Isn't it a bit misleading to list that six million is a reserve when we don't have that money? I mean, it's an accounting transaction. |
| 01:45:56.52 | Jonathon Goldman | Yes, the accounting transaction was the general fund loan, the MLK loan money. And so you have, |
| 01:46:02.95 | Unknown | May. |
| 01:46:06.75 | Jonathon Goldman | a risk. according to accounting principles just like GASB 54 or the GASB one that will affect the pensions. You have to have that one. The city says do you, does you have the ability |
| 01:46:10.87 | Unknown | the boot. You have to have talent. |
| 01:46:17.45 | Jonathon Goldman | to collect it. And so it says since you have this accounts receivable out here, the offset to it has to be a reservation of fund balance because you can't spend it. That's why it's an illiquid a portion of fund balance. If we didn't loan that money to MLK and invested it in Treasury securities, it would be in fund balance but unreserved and entirely liquid. So it's a matter of you have the accounts receivable and now you're saying, Well, instead of it being receivable from the federal government because I bought U.S. Treasury securities, it's receivable from the MLK fund and therefore we have to restrict it as a reserve in our Well, of course. |
| 01:47:03.75 | Unknown | Well, of course, but we don't actually have the six million, and unless we develop MLK or sell it somehow, we won't have the six million. |
| 01:47:13.03 | Unknown | I mean, it's not there. |
| 01:47:13.27 | Unknown | I mean, it's not there. So that's the point. I think it needs to be explained a little more so that people aren't thinking, oh, yeah, |
| 01:47:15.94 | Unknown | I think that's... |
| 01:47:23.02 | Unknown | That six million in hand on reserve. It's really not there. |
| 01:47:27.06 | Mayor Kelton | Not there. Is it a question? No, OK. That's not true. Can you tell you why it's not true? It produces net income. Yeah. Probably produces net income. |
| 01:47:35.61 | Jonathon Goldman | Yeah, if there was a question of the payability of the MLK fund back to the general fund, the auditors would not allow it to be a reservation of fund balance. And so every year we go through this question and they look at can and what are the future plans for MLK and is there the MLK have the capacity to pay. And based on the new lease structure and paying off the old debt service leases, the MLK fund will have the capacity and therefore accounting principal says that it can stay as a reservation fund balance. |
| 01:48:04.37 | Unknown | Thank you. |
| 01:48:19.03 | Unknown | Okay, the only thing, my only point is, and I understand everything you've said here, but my only point is that it should not be listed is something that we have in reserves I think it would be a good thing they listed of course and I understand the accounting procedure of balancing but there should be a big caveat saying this money is simply a an inter fund exchange basically it does not really exist |
| 01:48:50.35 | Jonathon Goldman | You said. I think this money is a critical factor in the medium term fiscal strategy for the city's general fund to become. resilient in the future. |
| 01:49:03.99 | Unknown | And that may very well be true, but we don't have it. |
| 01:49:07.14 | Jonathon Goldman | We're still in the house. |
| 01:49:07.97 | Unknown | As a dollar. |
| 01:49:08.17 | Unknown | As a dollar amount. |
| 01:49:09.54 | Jonathon Goldman | Thank you. |
| 01:49:11.23 | Unknown | Can I ask you a question, Charlie? So my understanding is, and correct me if I'm wrong, that the MLK fund has actually been making payments both on its debt to, has two other debt instruments sitting on it, one from. City of. No, from the school district and one which is a capital lease and the other one to West America. Yes. So as far as ability to pay, it is paying. And it has been repaying the city in increments over the last five years, in small increments on amounts that have been |
| 01:49:25.65 | Unknown | No. |
| 01:49:25.98 | Unknown | Bye. |
| 01:49:26.03 | Unknown | Thank you. |
| 01:49:26.13 | Unknown | from, |
| 01:49:26.75 | Unknown | Who's going |
| 01:49:27.21 | Unknown | So, it's really good. |
| 01:49:29.72 | Unknown | to it. |
| 01:49:29.98 | Unknown | Thank you. |
| 01:49:31.26 | Unknown | Yes. |
| 01:49:40.76 | Unknown | Um, that were advanced to it in the previous three or four years to fund capital improvements under leases out there. So as far as inability to pay, it's demonstrated that. I think that's how you make your case to the auditors as well. Unless, and my mistaken is that, so as far as having, and if you're a lender, an asset, a loan is an asset. In this case, the city is a lender to |
| 01:49:54.51 | Unknown | in the right. I'm not mistaken. I did it. |
| 01:50:04.28 | Unknown | Um, to that fund. And from a sustainability point of view at MLK, as far as the, I think your slide kind of illustrated it, that, um, One of the reasons that we entered into the agreement with the Licee Francaise is to get back to, because of the economic times and people and the Marin School's economic hardships brought MLK to a sustainable point a few years ago. The economy turned and some of the tenants have been coming back. for rent reductions. And so this is a step to getting back to that point where if once these other obligations are removed, The city can make a choice. Um, of how to liquefy that real estate asset, and not through development, just through a financial transaction, whether you re-leverage it with another mortgage-like facility and use that money to pay down some of these other obligations. Is that sort of what you're referring to in terms of? |
| 01:51:00.91 | Jonathon Goldman | That could be one option, yes. But definitely with the equivalent of a first mortgage and a second mortgage being paid off, in other words, the existing debt service, the MLK fund will have a very high, what do you call it, NOI? NOI, net operating income. Basically net operating income is you take your revenues, you take your operating expenses, the balance is left off for debt service. Currently our revenues are about a million dollars. Our operating expenses are approximately $250,000. So you're leaving $750,000 for debt service. Which is paid off |
| 01:51:02.28 | Unknown | Yes. budget. |
| 01:51:16.54 | Unknown | NOI. NOI. Get Operated Income. And that's between the net operating income |
| 01:51:36.11 | Mayor Kelton | Exactly. Which is, you pay it off in 10 years if you did it on that basis. |
| 01:51:39.74 | Jonathon Goldman | Thank you. |
| 01:51:41.08 | Unknown | Yes, and I'm not questioning its viability. The only thing I'm questioning is how we list that 6 million on the budget. |
| 01:51:51.12 | Mayor Kelton | I'll tell you what, I'll buy the $6 million from the city, okay, if I can have all the cash flow stream from MLK. Oh, wow. I'll pay you $6 million today. Done. That's good. I'll write the check. I'll write the check. See? |
| 01:51:57.04 | Unknown | Oh, well. That's, that's okay. Well, that misses a point. No, it's not. Anyway, we have the $6 million will be coming in, but it's not in reserves right now physically sitting somewhere. So it is unspendable and not yet realized and can't be realized until the loan's paid off and MLK becomes... |
| 01:52:02.17 | Mayor Kelton | Bye. |
| 01:52:04.23 | Unknown | Oh, my God. |
| 01:52:04.25 | Unknown | No. |
| 01:52:04.30 | Mayor Kelton | No. |
| 01:52:04.31 | Unknown | Thank you. |
| 01:52:04.35 | Mayor Kelton | It's a shame. |
| 01:52:04.97 | Unknown | Anyway, anyway, we have... |
| 01:52:25.58 | Unknown | profitable. |
| 01:52:26.91 | Jonathon Goldman | Even if there's a five to nothing council action for me to take it off, the reserves accounting principles wouldn't allow me to do that. |
| 01:52:32.85 | Unknown | wouldn't allow me to do it. Okay, no, my only point is to fully explain it so that people aren't misled. |
| 01:52:39.09 | Unknown | I believe you've pointed that out, that there's 23% of the budget in liquid assets, and there's a remainder is this illiquid asset, and you've labeled it as such. Illiquid implying you can't readily get to it and do something right. |
| 01:52:42.67 | Unknown | Yeah. |
| 01:52:46.01 | Mayor Kelton | and you've labeled it. |
| 01:52:51.48 | Mayor Kelton | Okay, any more questions? Linda, do you have any questions for Charlie? Hello? Linda? |
| 01:52:59.48 | Linda Beach | Yeah, I said no because most of my questions have been asked. |
| 01:53:03.83 | Mayor Kelton | okay great anybody from close that and thank you Charlie and ask if there's anyone from the public who would like to make a comment Yes. |
| 01:53:17.40 | Unknown | Would you like to make a comment about interaction among the members of the Council? When one member raises a question, And then another member says, oh, no, no, no, shake your head. |
| 01:53:27.96 | Mayor Kelton | Yeah. Thank you. |
| 01:53:28.49 | Unknown | Thank you. |
| 01:53:28.52 | Mayor Kelton | Thank you. |
| 01:53:28.62 | Unknown | Thank you. |
| 01:53:28.65 | Mayor Kelton | breaking the comment that you can make is on the agenda item not on the council's behavior. OK. So please restrict your comment. I'm please restrict your comment to the budget. |
| 01:53:35.68 | Unknown | Oh God. |
| 01:53:41.19 | Mayor Kelton | This is the Please restrict your comment to the budget. |
| 01:53:44.10 | Unknown | No, this is about the Council's action on the budget. No. I can take it out of the boat. |
| 01:53:48.13 | Mayor Kelton | I don't like to say that. |
| 01:53:49.78 | Unknown | Okay, because I had a very good argument, but I won't present it. Thank you. Thank you. |
| 01:53:55.40 | Mayor Kelton | of the |
| 01:53:55.44 | Unknown | Um... |
| 01:53:55.98 | Mayor Kelton | Anybody care to comment on the budget? Alright seeing that we bring it back up here. Any councilmember care to comment? |
| 01:54:07.48 | Unknown | I just think it's a good work on the part of staff and a good work on the part of the finance department, especially to try to make the most with the resources we have. And it's something we reassess halfway through the year. Again, it's still some cities haven't moved to a two year budgeting cycle and we've already been there since our second round of a two year budgeting cycle. So I think that's very important for the public understand in a budget cycle is different than long range financial planning. And that's another thing. I think we still do long range financial planning, but we adopt it to your budget. Um, We're still going to be paving streets, though in a less expedited method than we did in the past few years because we've got to live within our resources. And we're still planning for parks to be redone and developing plans for that. And it's going to require some private funds to come in. New restroom, new restroom right here. There's a lot of good things and we're funding the departments, I think, good clip though there's always more that we'd like to do so I appreciate the efforts of staff and working with the Charlie and Adam as well as with the council to come up with it's just really what a sustainable budget go for the next two years |
| 01:55:23.34 | Mayor Kelton | Thank you. MR. |
| 01:55:26.41 | Unknown | Yes. I... |
| 01:55:26.86 | Mayor Kelton | Thank you. |
| 01:55:26.97 | Unknown | Thank you. |
| 01:55:27.15 | Mayor Kelton | Yeah. |
| 01:55:27.19 | Unknown | Thank you. |
| 01:55:27.23 | Mayor Kelton | Bye. |
| 01:55:27.29 | Unknown | Yeah. |
| 01:55:27.30 | Mayor Kelton | Bye. |
| 01:55:27.44 | Unknown | you |
| 01:55:33.06 | Unknown | It's true. Budget should reflect the long-term planning, but I don't see that we have a lot of long-term planning going on here. And I know for sure that we purchased the five-year budgeting plan. Um, to do more long term planning, but I have not seen five years worth of budgeting. Also, And I'm not... being critical of staff about this and being more critical of the council. We are the policymakers. We need to plan ahead. We need to insist that we get plans for the future. We need to make sure that our pensions are sustainable. We need to to do that regardless of what the state does, regardless of what the federal government does, because they're not taking action. And so if we are going to do something for the Future. Again, we need to have that second tier. We need to have a second tier so that new employees coming on have a we have the second tier already. Let me correct that or we're proposing one. We need to have the defined contribution as part of that second tier. because that addresses a long-term issue. CalPERS is not addressing it. And... So who's going to address it? The state's not addressing it. The legislature's refusing to address it. Unless the local governments take some action, it will not be addressed. So, Unfortunately we're not doing that we should be and I'm very disappointed in that. I think the rest of the work that the departments have done and that our financial officer has done or financial director has accomplished is good and I commend certainly Abbott for his savings in the library. and you know, we need to look at more ways of doing that. I'm very disappointed, as I said earlier when we were talking about the contract, that we are not doing something that gives us a better stance long term. |
| 01:58:08.43 | Unknown | Can you flip back one slide so that your chart So that goes out beyond two years. |
| 01:58:15.34 | Mayor Kelton | THE END OF THE END OF THE |
| 01:58:15.43 | Unknown | goes out beyond two years. |
| 01:58:17.54 | Mayor Kelton | It's five year. Linda, do you have anything to say? |
| 01:58:25.86 | Linda Beach | I do, but it sounded like Council Member Leon was about to make a comment on a slide. |
| 01:58:33.52 | Unknown | I just we flip back to I don't know if you have it in with you but we have a chart that goes back to 2002 that and then out from 2012 to 2017. You can see on that chart that Charlie is doing financial planning for the city. The finance committee has also reviewed the inputs to a lot of these out years beyond 2013 and 2014. to show that we're planning out in the future and looking to accommodate the variables that we know we can anticipate now. Obviously, the world will change a lot in the next year. So we are looking out for five years, and Charlie is using the tools that he has available to him. |
| 01:59:18.49 | Unknown | Unfortunately, |
| 01:59:20.43 | Unknown | It's not getting to the full council level. Thank you. |
| 01:59:23.62 | Unknown | I think you're welcome. And we don't have the assumption. |
| 01:59:24.11 | Unknown | THE END OF THE END OF THE |
| 01:59:24.31 | Unknown | Thank you. |
| 01:59:24.36 | Unknown | Thank you. |
| 01:59:24.38 | Unknown | Can we don't? |
| 01:59:25.00 | Unknown | Thank you. |
| 01:59:25.02 | Unknown | have the assumption. Wait, wait, wait. Do you want to speak again for a minute? Yes. |
| 01:59:25.95 | Unknown | Thank you. |
| 01:59:29.83 | Unknown | Yes. Okay, can you wait until everybody gets their three? I just want to address Council Member Leon's. Can the rest of us get our three in now before we go to the moment? |
| 01:59:31.37 | Unknown | I just want to address |
| 01:59:32.97 | Unknown | Yes. |
| 01:59:33.44 | Mayor Kelton | Council member Leone's. Can the rest of us get our three in now before we go to our Sure. |
| 01:59:37.73 | Unknown | Sure. |
| 01:59:39.62 | Mayor Kelton | I see. Linda, do you want to say anything? |
| 01:59:45.49 | Linda Beach | uh, Very quickly, I want to thank city staff for their work on the budget and the efforts towards pension reform. I have to say that their defined contribution At the lack of a defined contribution strategy for new employees, I see as a missed opportunity for real and systemic long-term savings. I'm also concerned with the three-year cycle, given the severability clause is only linked to legislative action at the state level. I recognize Boswood as a general law city, but You know, we have no idea in terms of, you know, what may or may not happen, what changes might lie ahead. with regards to our options, in this manner. just wanted to state those concerns and And, uh, It's... Unfortunately, it feeds into this budget. |
| 02:00:46.24 | Mayor Kelton | I'm done. Okay, moving on. I, um, The Bartels company, Bartels Actuary, did a report for us. And at the time, this was about two years ago, I think, maybe. I think they do it every year, but the one I remember is a couple years ago. And that, Bartels' report, showed that While having a two-tiered pension system or any kind of a separate pension system, would in the long run be a very beneficial thing for the city. The long run is 20 to 30 years. because it takes that long to get rid of the folks who are already in your system before the new folks become the predominant cast of characters. So to hammer away at defined contributions is a false card. It is a red herring. What we're really talking about here is a budget A city budget. that has been positive Since 2006, building reserves through that period all the way up to 2012 and it is projected to build reserves all the way and throughout to 2017. So this is the kind of city that we're operating in. We've taken money, we've just done an annexation with unfortunately a great opposition that didn't turn out to be very supportive. We spent the city, spent a city and people in the city that could have put money to other things spent somewhere between $50,000 and $100,000. to fight this thing. And that money just went poof up in smoke. Now, the city itself is taking the money from this annexation. $1.25 million from the vehicle replacement fund, and a couple hundred thousand from over here and over there. And it's doing something about reforming. It's paying down the pension obligation. We're taking pension obligations in the future off the table. And that is real pension reform, not screaming about having a defined contribution program that amounts to a pittance over the next 10 years. We paid down our bonds. We'd have fees $2 million from our bonds from the savings that we made on the public safety building. I don't think anybody else in the county has had that kind of a record in the last five years that I've seen at least in the IJ And we're going to do more. This budget is packed with good ideas. to take things like MLK. and build MLKs as an asset so it produces a huge amount of money to the city. pay off the loan that it has from the general fund, which is an asset. I stand ready to buy it if anybody wants to sell it to me. |
| 02:03:25.12 | Unknown | Thank you. |
| 02:03:25.17 | Unknown | Oh, yeah. |
| 02:03:25.22 | Unknown | Thank you. |
| 02:03:26.30 | Mayor Kelton | And we will take that money and build our general fund and repay our general fund for all the money it put out in the past. And that's a perfectly good resolution. And that asset out there, we just signed a lease, as you know. That lease is a steady lease with an organization that's been around for 40 years and has a good asset base and will be able to pay us. unlike some of the tents we've had out there in the past. So we've done a tremendous job here. to build this budget, and anyone who says this isn't a good budget for a good budget outcome out to 2017. simply hasn't done their homework. Thank you. Anybody care to have another minute? |
| 02:04:06.94 | Linda Beach | Are you going to stop? Mr. Mayor, I would like to respond. |
| 02:04:07.83 | Unknown | Thank you. |
| 02:04:07.96 | Unknown | Sure. |
| 02:04:08.18 | Unknown | Thank you. |
| 02:04:08.22 | Mayor Kelton | I'm here. |
| 02:04:08.50 | Unknown | Okay. Yeah. Thank you. |
| 02:04:10.07 | Mayor Kelton | Okay, actually Council Member Ford was first. All right, you can go. |
| 02:04:12.64 | Linda Beach | I'm going to go ahead. |
| 02:04:16.91 | Mayor Kelton | Go ahead, Linda. |
| 02:04:17.24 | Linda Beach | I heard I've heard defined contribution programs called many things, but a red herring isn't one of them. With respect, I... I have to say that in my mind there is no way Anyone can claim a 2% at 55 defined benefit plan is more competitive than a 2% at 60 defined contribution Compromise is absolutely critical in this process. So is collaboration and a shared understanding of the reality we face ahead. and the long-term challenges that South Pluto faces on a physical level. So that is my response. |
| 02:05:00.83 | Mayor Kelton | Thank you. |
| 02:05:00.90 | Linda Beach | Can I move on? |
| 02:05:01.83 | Unknown | Yes, and I think it's irresponsible to say that defined contribution programs will provide negligible savings. That's the only way that we are going to get the savings that is required. to make our pension funding sustainable. We can no longer continue to rely on CalPERS and their questionable numbers and the stock market. We must have employees share the risk. And secondly, yes the city got rid of the pension obligation when they annexed the fire department they shifted it to southern Marin and onto the shoulders of our residents without any means of giving our residents a voice in the process so that's too bad but there we have it so I I am I'm very sorry that there's such a disagreement, but we are in disagreement. |
| 02:06:07.76 | Unknown | Yeah, I had a question for Charlie. Charlie, there was a statement about two at 60 versus two at 55. apples to apples, there's a difference there. But you have to give somebody something to give up something. And as far as the defined contribution plan coupled with two, it's going to be me. You went through this analysis. and in terms of your cost savings or non-cost savings, in the short run, with any implementing a defined contribution with even if they agreed to it, it doesn't produce a lot of immediate cost savings. It will over a long period of time, just like any pension reform, but in the immediate short run it does not. Is that correct? |
| 02:06:47.50 | Jonathon Goldman | And that's correct. The council authorized through the negotiations to say a combination of defined benefit and defined contribution. And that combination was 2% at 60 with a 3% defined contribution program. The cost of that program is exactly equal to a 2% at 55 program, so. |
| 02:07:14.60 | Unknown | In my understanding of the governor's plan, and we went through this in a meeting or two ago, That was a mythical, in this particular instance, cost savings, because once you throw Social Security into the mix, which still is up in the air, it becomes even more expensive than the alternative that we're pursuing. Is that, in my memory, correct? It is correct, yes. |
| 02:07:37.97 | Unknown | The problem with that, I'd like to comment on that particular question for Charlie. The problem with that is that that only considers the here and now. It considers a snapshot in time, does not consider the long term. |
| 02:07:39.04 | Unknown | Wait. Uh, |
| 02:07:41.31 | Adam Politzer | Thank you. |
| 02:07:41.35 | Jonathon Goldman | Right. |
| 02:07:41.36 | Unknown | Thank you. |
| 02:07:41.55 | Jonathon Goldman | I have a particular question. |
| 02:07:54.61 | Unknown | anyone who looks at that and looks at the city having to pay for employees' retirement for five extra years a certain number of employees from the age 55 to 60 is going to see that long term, that makes no sense. So, Well... All of this may be true and is true short term. It does nothing for our long term. It kicks a can down the road. The council has been doing that forever, our city councils, and it's time that we take responsibility you for where we are with pensions and the budgeting. |
| 02:08:39.57 | Mayor Kelton | Okay, one last statement I hope, but this council has kicked nothing down the road. This council has looked at the very hard choices. and made them. And going forward, unsubstantiated statements drawn from the mythical era of financial understanding are not going to... |
| 02:09:00.95 | Unknown | Your insults are not appreciated. |
| 02:09:01.96 | Mayor Kelton | are not appreciated. You're absolutely... haven't read the book, you haven't been to the meetings, you haven't studied the thing. I do not attend the finance. |
| 02:09:09.03 | Unknown | I do not attend the finance committee meetings, but I have been here, and I've read it, and I've discussed it, and I've worked in pensions for years. So please stop the insults. That's your job. |
| 02:09:12.78 | Mayor Kelton | Thank you. And I worked in pensions for years. So please stop. That's your job. Enough said. |
| 02:09:21.40 | Unknown | I don't know. I think. |
| 02:09:24.69 | Mayor Kelton | Anybody want to say any more? |
| 02:09:26.46 | Unknown | Well, if you don't want to be interrupted, don't interrupt other people is sort of the rule. So what goes around comes around. But no, I mean, I think that this is all public information. The staff is offered repeatedly to meet with whoever wants to meet and discuss it, and whether people have chosen to take them up on that is another story. |
| 02:09:46.81 | Mayor Kelton | All right. |
| 02:09:47.78 | Linda Beach | Thank you. Mr. Mayor, I have a comment. |
| 02:09:50.02 | Unknown | Thank you. |
| 02:09:50.04 | Mayor Kelton | Okay. |
| 02:09:50.24 | Unknown | Thank you. |
| 02:09:51.15 | Linda Beach | Right. I want to add that I, I have to echo that the 2% 55 defined benefit planned claims that that is The same savings as the 2% at 60 to fine contribution plan. is based on current interpretations of what CalPERS is telling us with regards to their discount rate. in addition to the five-year delta, so I disagree with that completely. And I also want to say that I really hope that this council will adjust the tone, it'll fully aim and the constitutional comments and insults with regard to Uh, We've all studied this ad nauseam without going to meetings. We've all been to the meetings without doing our homework. We've all done our homework. And it's just time we need to work together on this. We can agree and we can disagree constructively, and that's okay. |
| 02:10:56.15 | Mayor Kelton | All right. Let's have a motion. |
| 02:11:00.35 | Unknown | Okay, make a motion to approve in the appropriation limit for year 2012, 2013 pursuant to Article 13 of the California Constitution. |
| 02:11:17.31 | Mayor Kelton | Second, okay Debbie called a roll |
| 02:11:22.85 | Unknown | you Four. |
| 02:11:23.63 | Mayor Kelton | know. |
| 02:11:24.03 | Unknown | Thank you. |
| 02:11:27.86 | Unknown | Council member Winer. |
| 02:11:28.93 | Unknown | Yes. |
| 02:11:30.29 | Unknown | Council Member Piper. No. Vice Mayor Liam. |
| 02:11:35.88 | Unknown | Yes. |
| 02:11:37.43 | Unknown | you Mayor Kelton. |
| 02:11:38.95 | Unknown | Yes. you Okay. Next, move to establishing the authorized staffing levels and salary ranges for all permanent and temporary positions to the fiscal year 2012-2013. |
| 02:11:57.63 | Unknown | Say again. Thank you. Can I be color wrong? |
| 02:12:00.21 | Unknown | Council number four, |
| 02:12:02.32 | Unknown | Thank you. |
| 02:12:03.97 | Unknown | Council member Weiner? |
| 02:12:05.26 | Unknown | Thank you. |
| 02:12:05.29 | Unknown | Yes. |
| 02:12:06.67 | Unknown | Council Member Pfeiffer? No. Thank you. Vice Mayor Liam. |
| 02:12:14.82 | Unknown | Of course, yes. I'm not sure what there is a disagree with in terms of classifying employees, but yes. |
| 02:12:20.65 | Unknown | Council member, I'm sorry, Mayor Kelly. |
| 02:12:24.32 | Unknown | Yeah. |
| 02:12:24.38 | Mayor Kelton | Thank you. |
| 02:12:24.48 | Unknown | Yes. |
| 02:12:24.53 | Mayor Kelton | Thank you. |
| 02:12:24.60 | Unknown | you |
| 02:12:24.65 | Mayor Kelton | Thank you. |
| 02:12:26.64 | Unknown | Okay. Next, I move to approving the budget appropriations for the 2012-2013 fiscal year. |
| 02:12:38.38 | Unknown | Second, sir. |
| 02:12:39.98 | Unknown | Debbie Colorado. |
| 02:12:41.60 | Unknown | As a member forward. |
| 02:12:42.64 | Unknown | No. |
| 02:12:43.80 | Unknown | That's Member Weiner. Thank you. No. Nice to meet you. |
| 02:12:50.52 | Unknown | Yes. |
| 02:12:51.73 | Unknown | and you're telling me, |
| 02:12:52.32 | Mayor Kelton | Yes. All right, that moves us to item 6D, which was pulled from the consent calendar, which is the A-bag letter. Um, you want to state your case? |
| 02:13:05.38 | Unknown | Yes, the A-bag letter. I am asking... Uh... that we take a look and see if we can Make a case. for having low income, Housing. a percentage that is probably greater than any other city and a case for then changing our numbers for low income. Um, We may not be able to, and if we can't, that's okay, but if we do have that a great percentage then I would like to see us use it. Why shouldn't we? |
| 02:13:56.53 | Mayor Kelton | What does that have to do with the letter of the book? |
| 02:13:59.25 | Unknown | Oh, the letter was asking for other alternatives, was asking for feedback on ABAG's calculation process. |
| 02:14:11.63 | Unknown | Can I just share a question? |
| 02:14:14.25 | Unknown | Yeah. |
| 02:14:14.82 | Unknown | Thank you. Jeremy, my understanding, and correct me if I'm wrong, is that what ABAG does in their process, and I'm not defending ABAG as an entity or how they allocate housing or where the numbers that come down from the state to ABAG and then they parse them out. amongst the Bay Area jurisdictions. they don't really necessarily make an assumption of they make some assumptions of what your percentage of market rate housing you already have, and therefore what you would need to grow into the future of market rate, below market rate at different levels. Is that somewhat accurate? |
| 02:14:52.42 | Unknown | Thank you. |
| 02:14:52.44 | Unknown | Bye. |
| 02:14:52.51 | Unknown | Thank you. you No, the methodology that ABAG, what ABAG is proposing is a methodology for determining the upcoming RHNA. Right. And methodology that they have proposed does not take into account the market levels in a particular community. |
| 02:15:09.38 | Unknown | Right, so they're just saying you have to plan for these additional units at these levels. Correct. That's your responsibility because they have no way of knowing, just as we don't, |
| 02:15:10.04 | Unknown | They had to plan for that. Correct. of the |
| 02:15:16.43 | Unknown | Yeah. |
| 02:15:19.47 | Unknown | And even if you had a survey, the likelihood you're going to get back realistic data as to what the rents are being charged in terms of what your rental stock is at market rates and what it is, because that's a set of information that's not available on a very accurate basis. |
| 02:15:34.73 | Unknown | Well, I would like to correct a statement that I made in response to Councilwoman Ford's question earlier this evening. And your question was, does the city have information on how many low-income residents we have, how many very low-income residents we have? And I went back and have taken a look at the housing element that we discussed at the last meeting and in an appendix of the housing element it identifies that in 2003. we had 318 extremely low-income households, 264 very low-income households, and 459 low-income households. To put that in proportion, we have approximately 4,300 households total in the city. |
| 02:16:24.29 | Unknown | And so what, I'm sorry. Could you add up those three you just mentioned? |
| 02:16:29.69 | Unknown | That's set. Well, let me, so we have, using very round numbers, we have approximately 600. We have approximately, say, 1,100 lower income households out of 4,300. So using very round numbers, approximately 25% are lower, fall into the lower income categories. Right. |
| 02:16:33.03 | Unknown | I'll let me. |
| 02:16:34.68 | Unknown | Yeah. |
| 02:16:56.35 | Unknown | and it'd be highly down for. |
| 02:16:57.63 | Unknown | So in terms of other communities in the Bay Area, I'm not sure that that would show us. I haven't. I'm going off the seat of my pants here. I reluctantly do that because I may get myself in trouble. |
| 02:17:13.90 | Unknown | Mm-hmm. |
| 02:17:14.29 | Unknown | But I think there are some other communities in the more distant regions of the Bay Area that have a greater proportion of lower income households than we do in Marin. I mean, let's remember Marin is known for being a rather upper income area. So I'm not sure if we wanted to use that methodology. It could backfire on us. |
| 02:17:37.17 | Unknown | Well in terms of the county of Moran you think so because that's that's how they give the answer right with Rena is they look at the county and then the biggest cities and county |
| 02:17:50.75 | Unknown | I haven't gotten under the hood in that level of detail on the approach, the methodology that is taken by ABAC in establishing the RAN. |
| 02:17:55.38 | Unknown | I was on. |
| 02:18:05.54 | Mayor Kelton | Thank you. |
| 02:18:05.77 | Unknown | Thank you. |
| 02:18:06.03 | Mayor Kelton | It's... Jeremy, correct me if I'm wrong, but it doesn't matter how many affordable units you currently have in your inventory. They're not counted anyway. It's just a matter of fact. |
| 02:18:07.34 | Unknown | Jeremy, correct me if I'm not. |
| 02:18:16.19 | Unknown | That is correct. |
| 02:18:16.84 | Mayor Kelton | that what you're looking at is going forward The ABAG assigns us a number and tells us that's our number. We can argue about it and so on. And then of that number, we are required to make available development opportunities that will meet the arena. Thank you. |
| 02:18:34.75 | Unknown | Thank you. |
| 02:18:34.93 | Mayor Kelton | Correct, okay. |
| 02:18:35.66 | Unknown | Well, that is correct that ABAG right now is asking for our input in terms of how they do the formula, how they calculate the formula. And given the opportunity to comment, if it's to our advantage, I would certainly think we would take it. |
| 02:18:45.40 | Unknown | Thank you. |
| 02:18:45.41 | Unknown | And you |
| 02:18:45.97 | Mayor Kelton | Bye. |
| 02:18:52.99 | Unknown | We are. That is correct. Now is the opportunity to comment on the methodology. But I guess I want to caution. We should probably study. Well, we should. |
| 02:18:53.56 | Unknown | That is correct. |
| 02:19:00.48 | Unknown | Well, we should do our research. Before we suggest something that might be. |
| 02:19:01.63 | Unknown | Before we suggest something that might backfire on us. |
| 02:19:04.19 | Unknown | Right, right. No, I'm suggesting we find out and if we can benefit from it that we do so. I'm not suggesting we do something that's not gonna benefit Sausalito. |
| 02:19:16.18 | Unknown | I guess I do want to caution the council, though, that our number that we have is 82, using the methodology that they propose. From the staff perspective, we would advocate... for ABAG to continue with their current methodology. This is the best, this is the lowest RENA we have had in many cycles. So maybe sometimes, obviously this is a council decision here on how you want to comment to ABAG, but from the staff perspective, we think we've got a pretty good deal going right now. |
| 02:19:36.04 | Mayor Kelton | Yes. |
| 02:19:36.75 | Unknown | Thank you. in many cycles. So maybe sometime |
| 02:19:50.58 | Mayor Kelton | I agree. |
| 02:19:51.16 | Unknown | Yeah, except for the 25, I agree. I think it's a great deal. But the 25 is what I was questioning. Does any member? |
| 02:19:59.70 | Unknown | Is any member? I just have a question. So, I mean, I think it's, I guess what you're saying and I hear what you're trying to read into it a little deeper is that having a, I think it's 40 some percentage of rental stock in Saucelita of the households. It's close to 50. Yeah, it's like 40 and change. |
| 02:20:12.66 | Unknown | THE END OF THE END OF THE Close to 50. |
| 02:20:15.05 | Unknown | Closer from presentations by Jeff Bradley, I think it's closer to 52, 51. It's slightly over 50%. |
| 02:20:16.94 | Unknown | Yeah, it's like, hi. It's slightly over 50%. But equating that to necessarily just because it's rental stock, being below market, all of it being, or a huge 25% of it from the figures being below market rate. I think the purpose of what they're trying to achieve here in the greater scheme of things is that people are paying a disproportionate amount of their income for housing and an expensive place to live. And what they're trying to do is is offset that with the opportunity to pay a more proportional rate of your income towards housing. So just because you have 50 more or less of rental stock does not mean it's affordable. |
| 02:20:56.16 | Unknown | Correct. |
| 02:20:56.75 | Unknown | It just means you have 50% rental stock. And so what they're saying is make sure you plan to accommodate people at certain numbers of affordable whatever stock, whether it's rental, owner, what have you, vote through. |
| 02:21:13.00 | Mayor Kelton | All right. Does any member of the public care to speak about this? You say it. It's pretty well. I mean, it's great, John, isn't it? |
| 02:21:15.09 | Unknown | about what you say. |
| 02:21:16.43 | Unknown | What you just put forward, no, what is elementary is the logic that we should go back then and say, we have 50% rental stock, so you should reduce our numbers. |
| 02:21:25.84 | Unknown | That was not my comment. That's what you just said. No, it was not. Okay, great. It was not what I just said. I said of the total housing in Sausalito, how much is low? |
| 02:21:26.45 | Unknown | That's what you just said. No, it was not. |
| 02:21:29.03 | Unknown | Okay. |
| 02:21:37.88 | Unknown | income, how many households? And Jeremy answered my question. So if it makes no sense, if we're not any better or worse than anyone else, then to go back and request lower numbers on the low end then so be it I just raised a question so thank you |
| 02:21:57.65 | Mayor Kelton | you |
| 02:21:57.81 | Unknown | Okay. |
| 02:21:57.84 | Mayor Kelton | Okay, does any member of the public wish to comment on this? Okay, seeing none, can I have a motion? |
| 02:22:05.64 | Unknown | I guess, is it three items here? |
| 02:22:07.49 | Mayor Kelton | No, I just won't. |
| 02:22:08.76 | Unknown | Thank you. That's two. |
| 02:22:12.22 | Mayor Kelton | It's to approve draft letter and direct staff to send a response to ABEG on the draft 2014-2022 regional housing need allocation methodology. |
| 02:22:20.92 | Unknown | I think Mary Lee's so moved. |
| 02:22:24.15 | Mayor Kelton | Okay, Debbie, what's your call roll? |
| 02:22:24.92 | Unknown | going old. |
| 02:22:26.26 | Mayor Kelton | Yes? |
| 02:22:26.69 | Linda Beach | I did have a... |
| 02:22:28.08 | Mayor Kelton | Okay. |
| 02:22:28.97 | Linda Beach | THE END OF THE END OF THE Yeah. My comment is... I know that ABAC uses assumptions when they are creating these numbers. and looking at the numbers for the rest of Moran County, It looks like a lot of like San Rafael and Corte Madera, a lot of them Larkspur. Mill Valley, Novato had their numbers. um... of dramatically reduced as well. Um, So I guess my My question is, Okay, fair play. for the |
| 02:23:10.87 | Mayor Kelton | You're breaking up. |
| 02:23:11.26 | Linda Beach | You're breaking... Oh, okay. Can we ask ABAC for the numbers and the assumptions they made in coming to that number. |
| 02:23:27.92 | Unknown | you you |
| 02:23:29.13 | Mayor Kelton | I didn't ask him for anything. Jeremy? |
| 02:23:36.15 | Unknown | I'm sorry Councilmember Pfeiffer, could you repeat your question? |
| 02:23:40.83 | Linda Beach | Sure. |
| 02:23:44.12 | Mayor Kelton | You're breaking up. Linda, you're breaking up. You're phasing in and out. |
| 02:23:49.55 | Linda Beach | Picking up an echo too. APAG uses a pedology. over a month. . calculating these Thank you. and they make assumptions. And my question is, Can we get that date? |
| 02:24:13.89 | Mayor Kelton | Did you get the data for how they make the assumptions? Yeah. Yeah, sure. |
| 02:24:15.94 | Unknown | Yeah, sure. And how, like, Novato gets, you know, such a meaningful drop in allocation versus Sausalito. I think that's certainly worth knowing, besides the fact that... |
| 02:24:26.20 | Unknown | Thank you. |
| 02:24:29.02 | Unknown | who may be of power and a bag and their ability to influence these numbers. |
| 02:24:29.14 | Unknown | who may be of power in ABAC and their ability to influence |
| 02:24:32.97 | Unknown | that. |
| 02:24:33.34 | Unknown | you |
| 02:24:37.06 | Unknown | . |
| 02:24:37.12 | Unknown | Okay. We... the calculations in this. That's what she's asking for, calculations and assumptions. So if we could get that, take a look at it, make some judgments based on that, and maybe change or not change the letter depending on what we find. |
| 02:24:52.24 | Mayor Kelton | Well, here we go again. Is there any purpose for getting those assumptions that would change this? Is there anything in getting those assumptions that would make you change what's in your letter? |
| 02:25:02.98 | Unknown | Well, the due date for the letter is . June 30th. June 30th. So in terms of the |
| 02:25:08.44 | Mayor Kelton | Yeah. |
| 02:25:08.56 | Unknown | Yeah. |
| 02:25:08.58 | Mayor Kelton | . June 30th. June 30th. So we need to send a letter and then get the data if you can, and we can look at the assumptions, okay? |
| 02:25:14.38 | Unknown | we can certainly ask for the paper for them to show their work. |
| 02:25:16.29 | Mayor Kelton | Fair enough. Thank you. |
| 02:25:20.95 | Unknown | Yeah. |
| 02:25:20.96 | Mayor Kelton | Okay, so let's... |
| 02:25:21.47 | Linda Beach | Okay. |
| 02:25:23.90 | Mayor Kelton | Mr. Mayor? |
| 02:25:24.03 | Linda Beach | Mr. Mayor, Yeah, I understand the deadline is June 30th. if Jeremy can't get data from AMA. and send it to individual council members. we could possibly respond to you know, me and individual as well. |
| 02:25:46.48 | Mayor Kelton | Brown Act. |
| 02:25:48.11 | Linda Beach | respond as individuals. |
| 02:25:49.19 | Mayor Kelton | Well, |
| 02:25:49.63 | Unknown | Thank you. |
| 02:25:49.65 | Mayor Kelton | Thank you. |
| 02:25:49.68 | Unknown | Thank you. But you're always free to do that. Yeah. Or we can. Or. We can't do it as a consensus of the council. |
| 02:25:52.91 | Unknown | a week |
| 02:25:57.01 | Unknown | another option is to submit an addendum to the letter later on and hope they'll consider it we could do that so why don't we ask can staff to go ahead with this letter and then get the calculations and assumptions that a bag use and then we can take a look at that and see if there any other recommendations we want to make I'm and if we do we could always send it in a bag schedule is not such that they're going to be making an immediate decision I noticed |
| 02:26:04.23 | Unknown | Sure, but... |
| 02:26:35.64 | Unknown | Can I ask a quick clarification? Were you talking about this April 25th letter, or is there, you know, which letter are we referring to? |
| 02:26:44.85 | Unknown | It's attachment 4 on page 4-1. |
| 02:26:46.96 | Unknown | H4-1. Okay. Yeah. |
| 02:26:48.85 | Unknown | Yeah. |
| 02:26:49.15 | Unknown | you for it. |
| 02:26:54.94 | Mayor Kelton | Okay. All right. Motion's on tip. Can you take the call roll? |
| 02:27:00.98 | Unknown | you |
| 02:27:01.03 | Mayor Kelton | Thank you. |
| 02:27:01.17 | Unknown | Second. you |
| 02:27:02.13 | Unknown | Thank you. |
| 02:27:02.35 | Mayor Kelton | Oh. I second. music i think it was just a |
| 02:27:09.27 | Unknown | you |
| 02:27:09.72 | Mayor Kelton | It doesn't matter. |
| 02:27:10.89 | Unknown | but just to- Wait a minute, what motion's here to take? The motion- I thought I made the motion. |
| 02:27:10.97 | Unknown | just, |
| 02:27:11.23 | Mayor Kelton | Thank you. |
| 02:27:11.26 | Unknown | Thank you. |
| 02:27:11.27 | Mayor Kelton | We'll be right back. The motion. Thank you. No, no, no, I made the notion. What is your notion? |
| 02:27:16.47 | Unknown | in the future. |
| 02:27:16.62 | Unknown | What is your notion? |
| 02:27:17.91 | Mayor Kelton | Approved draft letter sends direct staff to send a response to ABEC on the draft 2014-22 Regional Housing Needs Allocation Methodology. Thank you. Thank you. |
| 02:27:24.96 | Unknown | Okay, then I'll second that. |
| 02:27:25.40 | Mayor Kelton | I'll step in that. Thank you. |
| 02:27:26.78 | Unknown | Thank you. |
| 02:27:26.83 | Mayor Kelton | Thank you. |
| 02:27:26.87 | Unknown | How are you? |
| 02:27:26.92 | Mayor Kelton | Amen. |
| 02:27:27.19 | Unknown | Another, like, two from Memphis. |
| 02:27:27.26 | Unknown | Thank you. |
| 02:27:27.27 | Mayor Kelton | I'm going to go. Um, you Not my motion. You can make your own motion. You can make a substitute motion. |
| 02:27:33.68 | Unknown | You won't accept an amendment that says we asked ABAG for it and then later submit and |
| 02:27:35.73 | Mayor Kelton | Like that says we ask. No, no. Then later submit. We gave direction to staff to do that. Okay? That's all we need to do. |
| 02:27:44.59 | Unknown | Oh, OK. All right. All right. It's on the staff. It comes back to us, and we can do that. |
| 02:27:45.06 | Mayor Kelton | Sure. |
| 02:27:49.36 | Mayor Kelton | I promise they will. |
| 02:27:49.75 | Unknown | I wish they were. |
| 02:27:50.29 | Unknown | you Thank you. |
| 02:27:51.02 | Unknown | Okay. |
| 02:27:51.07 | Unknown | Yeah. |
| 02:27:51.20 | Mayor Kelton | Yeah. |
| 02:27:51.22 | Unknown | Thank you. |
| 02:27:51.35 | Mayor Kelton | Thank you. All right, so we have a motion and a second. Debbie, would you call the roll? |
| 02:27:55.40 | Unknown | Council member Ford. |
| 02:27:56.60 | Mayor Kelton | Yes. |
| 02:27:56.62 | Unknown | Thank you. |
| 02:27:57.19 | Unknown | Thank you. |
| 02:27:58.25 | Unknown | Councilmember Weiner? |
| 02:27:59.72 | Unknown | Thank you. |
| 02:28:00.38 | Unknown | Council Member Fyker. Yeah. Dicemalium. |
| 02:28:06.02 | Mayor Kelton | Yes. |
| 02:28:07.84 | Unknown | Mayor Kelly. |
| 02:28:08.53 | Mayor Kelton | Yes. Okay, that brings us to City Manager Information for Council. |
| 02:28:14.37 | Unknown | So I'm going to kind of leave early to try and catch a plane. So thank you. |
| 02:28:15.53 | Mayor Kelton | Yeah, you can do it. |
| 02:28:24.70 | Mayor Kelton | the record and show that Jonathan left the stage. |
| 02:28:24.85 | Unknown | Thank you. |
| 02:28:24.95 | Adam Politzer | Ooh. |
| 02:28:28.78 | Adam Politzer | There's not much more to discuss tonight. The budget, as Charlie artfully shares with the council and the public, tells its own story of our successes looking backwards and then looking forward of where we're going. So I think that we're very pleased, and I shared this at the last meeting, of the effort that the department has put in to managing the budget. The work of all the boards and committees and volunteers have served the city in various capacity and we get to celebrate their support of the city at our volunteer recognition event every spring and then obviously celebrate the good work of all of our employees. And it is really important to recognize over this past five years, we haven't had a lot of staff turnover, both at the management level nor at the ground level of where the rubber meets the road. So, you know, I'm pleased and proud of that fact as your city manager and I hope the council shares my same value that retention is very important especially during these difficult economic times where we're trying to do the same level of service with the same number of dollars to provide that. You know, just a few things I think that some things have gotten lost in all the debate over the last three or four months that are worth sharing and one of them is significant with the Sustainability Commission and their efforts. They came forward and said that they were going to put in for a request for a zero waste grant and they did receive it. It's in the neighborhood of $26,000. in's in the effort to develop a plan for how the city of South State is actually going to accomplish the state goal of 80% reduction in the very near future, reduction to the landfill, and then 100% not so far out. I think we're talking about 25 years and the clock clock has already been clicking on it. So that money is important. It gives us a path towards the future to accomplish that goal and the good work of the Sustainability Commission in pursuing that effort. We had discussions at a council meeting or so back about the LISise moving in as a new tenant and agreeing to terms with the city of Sausalito. It's very exciting as talked about in the budget discussion to have a tenant that has the where for all to pay its rent and to pay a rent out into the future that escalates gives us considerable sustainability out at MLK. But more important than that, it gives our residents an opportunity from preschool to fifth grade to enroll in a school here in their town that for many would say is a very superior education to what was provided to them earlier if you are choosing the private school option. |
| 02:30:11.97 | Unknown | God. |
| 02:31:41.29 | Adam Politzer | We discussed at the last council meeting after our superintendent, Valerie Pritz, came and talked about a variety of community meetings. And I again want to reiterate the importance that the council is paying attention to the board meeting discussions. And I know that council member, our vice mayor, Leon, who serves as our liaison to their board, attended their last board meeting and got up and spoke and shared his personal concern of separating the two schools and moving Bayside over to MLPA Academy and letting Willow Creek Academy spread over that campus. I don't know at this moment in time if I share his concerns that it returns us to segregated schools, but that is one of the concerns that is out there and being discussed in the community. Will this have a negative effect on both of the communities by making this move? Thank you. Most importantly to me as your city manager and looking into the best interest of our residents is making sure that we have a sustainable public school for our community. So if the majority of the kids that attend Bayside and Willow Creek Academy do not live here in our town. and a shift of the population moves to Marin City or some alternative school outside of Sausalito, will there remain enough students in the long term to make that school sustainable? And if it's not, what happens to that campus in the future? We see what's happened to the campus at MLK school that I attended, which is now full with artists and now private schools and other cottage industry tenants. So it is important that our council is paying attention to this and that the community participates at their public meetings and we posted those meetings in the Currence, in the last issue of the Currence, the Sassu and Mwenski City School District has the information on their website and I strongly hope that our residents are participating actively in that discussion. There are definitely pros with what is being suggested, but there are also cons that need to be explored and made visible to the public in case there are negative outcomes that are unintended consequences five, ten years down the road. The last that I'd like to share, and I think our public works director who is not here may have reported in his last update, but we are working with TAM, the Transportation Authority of Marin, to try to leverage the money that they have in terms of Measure A and Measure B funds that the county passed, which generates new revenues to TAM to help with pedestrian and bicycle improvements and also roadway improvements throughout all of its cities. And it looks like we will be receiving a grant from TAM in the neighborhood of $70,000 to $75,000, and we are also looking at receiving a grant in the neighborhood of $80,000 to $75,000 and we are also looking at receiving a grant in the neighborhood of $80,000 and all of that money right now is to help us help finish the project downtown where we have Anchor Street and Bay Street, the sidewalk improvements there. We need to make the improvements on Humboldt and then we need to make the sidewalk that connects parking lot one to parking lot three. So we need to have access for pedestrians to go through that process. In the first round of those grants, we only received $250,000. So now we have the money to do the design work. The design work will come back money to do the design work. The design work will come back in front of the Planning Commission and come to the Council eventually for what we're proposing to do. But to receive, you know, roughly $150,000 in grant funds to do the design work is pretty significant and also meaningful as we continue to move forward. Our infrastructure improvements, especially in relationship to what we're doing downtown Thank you. significant and also meaningful as we continue to move forward. Our infrastructure improvements, especially in relationship to what we're doing downtown with the new restroom and the improved sidewalks on Bay and Anchor and then what's coming down the pipe later, no pun intended, are the sewer improvements that we've been discussing for a number of years now. I'll end my manager's report at this point in time and take any questions the council may have. |
| 02:36:17.91 | Mayor Kelton | Any questions of Adam? Linda, any questions of Adam? |
| 02:36:25.97 | Mayor Kelton | Hello? Linda? |
| 02:36:27.85 | Linda Beach | Sorry, I forgot I had clicked the mute to make sure there was no echo. No, I have no questions. |
| 02:36:36.37 | Mayor Kelton | Okay. All right. That being said, we're on to item 7B, which is future agenda items. |
| 02:36:45.50 | Mayor Kelton | Hearing none. Move to item C, which is council member committee reports. Any? We had. |
| 02:36:56.40 | Linda Beach | And... Thank you. Mr. Mayor? |
| 02:36:58.29 | Mayor Kelton | Yes. |
| 02:36:58.64 | Unknown | Thank you. |
| 02:36:59.76 | Linda Beach | Yes, I have a report. I'm Kosh Kai. |
| 02:37:03.30 | Unknown | No. |
| 02:37:03.33 | Linda Beach | Oh. |
| 02:37:03.88 | Unknown | Thank you. Okay. |
| 02:37:04.95 | Linda Beach | Sister City, so it's uh, I... I'm looking forward to a Very busy weekend. They have every day is passed And, activities that are designed to Any of the other cities and no cash clients? and full-finity. I For the record, I want to say that I'm paying for your phone call. |
| 02:37:39.95 | Unknown | Okay. |
| 02:37:41.18 | Linda Beach | And So I look forward to being back and reporting back on this with the Portuguese delegation from our area. |
| 02:37:50.77 | Mayor Kelton | Okay, good, excellent. All right, that being said, we're at the end of the evening. Do we have a motion to adjourn? |
| 02:37:52.76 | Linda Beach | All right. |
| 02:37:58.38 | Unknown | Motion to adjourn. |
| 02:37:59.65 | Mayor Kelton | Second. All right, all in favor, aye. Aye. |
| 02:38:02.08 | Unknown | Thank you. |
| 02:38:03.83 | Linda Beach | Thank you. Thank you. |