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Home My WebLink About10A - MIN 2-5-18MINUTES OF THE SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF SANTA ANA, CALIFORNIA FEBRUARY 5, 2018 CALLED TO ORDER CITY HALL, ROSS ANNEX 20 CIVIC CENTER PLAZA, ROOM 1600 SANTA ANA, CA 4:12 P.M. ATTENDANCE COUNCILMEMBERS Present: MICHELE MARTINEZ, Mayor Pro Tem P. DAVID BENAVIDES VICENTE SARMIENTO JOSE SOLORIO SAL TINAJERO (4:22 P.M.) JUAN VILLEGAS COUNCILMEMBERS Absent: MIGUEL A. PULIDO, Mayor STAFF Present: RAUL GODINEZ, II, City Manager SONIA R. CARVALHO, City Attorney MARIA D. HUIZAR, Clerk of the Council PUBLIC COMMENTS • Jose Tapia, expressed strong opposition to the police officers who have been reinstated after video depicts illegal activity. CLOSED SESSION MEETING COUNCIL RECESSED to Room 2201 for Closed Session discussion at 4:14 p.m. CLOSED SESSION ITEMS - The Brown Act permits legislative bodies to discuss certain matters without members of the public present. The City Council finds, based on advice from the City Attorney, that discussion in open session of the following matters will prejudice the position of the City in existing and anticipated litigation: CITY COUNCIL MINUTES 10 I FEBRUARY 5, 2018 1. CONFERENCE WITH LEGAL COUNSEL --EXISTING LITIGATION pursuant to Paragraph (1) of subdivision (d) of Section 54956.9 of the Government Code: a. Brandon Sontag v. City of Santa Ana, et al., Orange County Superior Court, Case # 30-2017-00902039-CU-OE-CJC b. Nicole Quiias v. City of Santa Ana, Orange County Superior Court, Case # 30-2016-00850502-CU-OE-CJC c. Santa Ana Police Officers' Association v. City of Santa Ana, Orange County Superior Court, Case # 30-2015-00801604-CU-OE-CJC d. Robert Reisse and Dana Reisse v. City of Santa Ana, et al., Orange County Superior Court, Case No.: 30-2014-00705090 e. Sky High Holistic v. City of Santa Ana, et al., Orange County Superior Court, Case No. 30-2017-00897912-CU-WM-CJC 2. PUBLIC EMPLOYEE EVALUATION OF PERFORMANCE pursuant to Section 54957(b)(1) of the Government Code: Title: City Manager and Clerk of the Council 3. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Government Code Section 54957.6(a): Agency Negotiator: City Manager, Raul Godinez II Unrepresented Employees: Executive Management (EM) ADJOURNED THE CLOSED SESSION MEETING AT 5:32 P.M. AND CONVENED TO THE REGULAR OPEN MEETING REGULAR OPEN MEETING CLOSED SESSION REPORT — There were no reportable actions. CITY COUNCIL MINUTES 10A �2 FEBRUARY 5, 2018 WORK STUDY SESSION WS -1. STAFF PRESENTATION OF THE FOLLOWING: • FISCAL YEAR 2017-18 MID -YEAR BUDGET REVIEW, • FIVE (5) YEAR FORECAST, • FISCAL YEAR 2018-19 PRELIMINARY BUDGET, AND • DISCUSSION AND DIRECTION REGARDING CALIFORNIA PUBLIC EMPLOYEES' RETIREMENT SYSTEM (PERS) AGENDA • City Manager Overview / Governing Principles. • Pension Overview • FY 2017-18 Adopted General Fund Balance • FY 2017-18 General Fund Mid -Year Report • Preliminary FY 2018-19 General Fund Budget • Five -Year General Fund Forecast GOVERNING PRINCIPLES • Be transparent and honest about the problem • Use a comprehensive approach for all funds • Establish a vision, develop a budget that promotes long term sustainability, implement best practices and utilize a combination of cost reductions and revenue increases. • Use a multi-year approach to achieve financial sustainability • Identify core services and focus on funding core services • Provide clear vision and direction from leadership • Engage in a collaborative approach PENSION OVERVIEW • Current Overview & Funding History • Impacts to Unfunded PERS Liability • Impacts to City Budget • League of California Cities Study & Findings on Retirement System Sustainability • Strategies to Address Rising Pension Costs CURRENT OVERVIEW CaIPERS Fund • History of CalPERS 1932: Established as State retirement system 1947: City entered into CalPERS 1998: "Golden Age" CalPERS peak!! 95% of statewide Miscellaneous employees were on 2% at 60 Plan 50% of statewide Safety employees had the 2.5% at 55 Plan Employer Contribution Rates CITY COUNCIL MINUTES 10 3 FEBRUARY 5, 2018 • 0% for Miscellaneous • 0-7% for Safety • Misc.: 1971-1995: 2% @ 60; 1995-2008: 2% @ 55; 2009 -Present: 2.7% @ 55 • Safety: 1974-2001: 2% @ 50; 2001 -Present: 3% @ 50 senor vww 2oac vmc -.w now 5 Funded Status for CaIPERS Fund 03 ov m oo m .. m 'm 11 ai b 'vi is le m..IY... E,d1M m.. a' City of Santa Ana Retirement Benefits History Safety Plan History e 1974-2001: 2% at 50 • 2001 -Present (Classic Members): 3% at 50 • PEPRA Members: 2.7% at 57 Miscellaneous Plan History • 1971-1995: 2% at 60 • 1995-2008:2% at 55 • 2009 -Present (Classic Members): 2.7% at 55 • PEPRA Members: 2.0% at 62 Up to 2% annual COLA for both Classic & PEPRA members Disability benefits; death benefits; survivor benefit; EPMC (classic only) PEPRA = Public Employees' Pension Reform Act IMPACTS TO PERS — UNFUNDED LIABILITY What Elements Impact PERS Rates? Mlsc: 2.7%@55 5a :3.0%@50 Pnive P Wed s. Pof E.,1,-, Pate 11 CITY COUNCIL MINUTES 10A 44 FEBRUARY 5, 2018 Plan Demographics Miscellaneous • Retired employees or beneficiaries currently receiving benefits 1,328 • Separated employees entitled to but not yet receiving benefits 782 • Active employees 737 Total 2,847 Total Plan Participants: 4,241 a PERS Income FyMou rrce 2015 i Mips:://wwwcofpers.co.gov/page/newsroom/fa-tNe4ecord/2017/pensionbuck Saurre: [aWERS'hd sheet M Safety (Police/Fire) 923 179 292 1,394 CITY COUNCIL MINUTES 10A5 5 FEBRUARY 5, 2018 EXAMPLE: _._mwemeapmeiun r. mewuutama CalPERS Changes Enacted During Past 5 Years • In response to deteriorating financial conditions, CalPERS began enacting a series of pension cost changes • March 16, 2012 — Change in Discount Rate From 7.75% - 7.50% • April 17, 2013 — Change in Amortization & Rate Smoothing Policy • February 18, 2014 — Change in Actuarial Assumptions & Asset Allocations • December 21, 2016, the CalPERS Board voted to enact two substantial new changes 1. Lower the discount rate from 7.5% to 7.0% (assumed rate of return) 2. Enact an accelerated payback schedule for all unfunded accrued liabilities (UAL) • The resulting effect of the two changes includes the following: • Discount Rate Reduction • Impacts employer rates beginning in FY 2018/19 • Option to accelerate the Unfunded Actuarial Liability Payment (30 to 20 years) Madcet Value of Assets $I48.0M $711.0M TOW Pension ualtlllty (Los) (1.18) Funded Rstic 7&1% 67.N MFrket Volye of Meets $560.om $549.9M Tetel POW.. Meblllty (787.9M) (819AM) unfunded Va iuty ISzm.am) ($=.Im) Funded R.N. .71.6% 67.a% Source: CuIPERS'06/30/2017 W(uaNnn Report Jathe Cty oJSonmAna CITY COUNCIL MINUTES 10A 66 FEBRUARY 5, 2018 Unfunded Pension Liability Vma -- ss.4' -.1 ... 1 — Mrs 5500.0 � .i ae11o�8}.0% Smo.o MI .5:nded A.ui siaw�i Bnllo: }1.6M $SODA 1}1'14-4a'111`1„ __ _...—I. SID00 srferysunded P Io:M.>"A. 9100.0 Ptlle }31% iY15 P016 "i^ Liability Assets pg$ets Wi6rl e 04111%� a4u ded'�atbg YeaoOe% Ye -3. iemn q. z1 (menu 1 ��b�.(e :6Pl� 3 x A� 18� PERS RATES: Employer Contribution MagM P011ce Rates 36.2% 412% 44.7% 49.1% 12,8% Fre UAL $9.3M $11.4M $127M $14.5M $160M �E3Vw�i i�lg%9�` .3% 35 2 38.8 PERS PATES 30,7% 393Y 388% 41.9% 443% sewn: Cdi4 VOA0/3Pd] vdumra.xeWrljar meal, q4w: a ',xdud®emOlWee mnMbuNw:: ry: 13% In Safety (PD Only) Employees FY 18-19 For every $100 in salary, the City Pays $36 in Pension Benefits Salary + Pension Benefits = $136 FY 22-23 For every $100 in salary, the City will pay $53 in Pension Benefits Salary + Pension Benefits = $153 Miscellaneous Employees FY 18-19 For every $100 in salary, the City Pays $31 in Pension Benefits Salary + Pension Benefits = $131 FY 22-23 For every $100 in salary, the City will pay $44 in Pension Benefits Salary + Pension Benefits = $144 CITY COUNCIL MINUTES 10A7-7 FEBRUARY 5, 2018 IMPACTS TO CITY BUDGET H (ALL FUNDS) -- Average annual ....I Se'EM 1 increase of 137 %over : $MM .n to:ea °6aon I ,the neM five Yeats SLIM g [ree:n 575.1M poo $sno Sso 0 Eno a Sao 0 Sza o 9w.o FvzuaE nuaz Pvzz.za J Pme[1ad ProeRatl pre�aRotl ®•enenl Fund amnloyer ContrlLuOon 23 LEAGUE OF CALIFORNIA CITIES PENSION STUDY • Local agencies comprise approximately 40 percent of all CalPERS members. • Local Leaders, comprising of mayors, council members, city managers and finance officers shared their own cities' stories and concerns during meetings in September & November 2017. • The message delivered was: the "employer just paying more" option is no longer viable. • Following these meetings where local leaders gave voice to the challenges they face delivering services as pension costs increase, the League decided to commission this study. • Key Findings: 1. Rising pension costs will require cities over the next seven years to nearly double the percentage of their General Fund dollars they pay to CaIPERS; 2. For many cities, pension costs will dramatically increase to unsustainable levels; and 3. The impacts of increasing pension costs as a percentage of General Fund spending will affect cities even more than the state. Employee costs, including police, fire and other municipal services, are a larger proportion of spending for cities STRATEGIES TO ADDRESS RISING PENSION COSTS CITY COUNCIL MINUTES 10A 88 FEBRUARY 5, 2018 9e.sm r�<reae® mnrense "' 6of8M �2.3M 4S.1M FV1Jw Nww R']PEd ERlme<ud PmJeRetl Pioetred I Mm U-1 Fund FvzuaE nuaz Pvzz.za J Pme[1ad ProeRatl pre�aRotl ®•enenl Fund amnloyer ContrlLuOon 23 LEAGUE OF CALIFORNIA CITIES PENSION STUDY • Local agencies comprise approximately 40 percent of all CalPERS members. • Local Leaders, comprising of mayors, council members, city managers and finance officers shared their own cities' stories and concerns during meetings in September & November 2017. • The message delivered was: the "employer just paying more" option is no longer viable. • Following these meetings where local leaders gave voice to the challenges they face delivering services as pension costs increase, the League decided to commission this study. • Key Findings: 1. Rising pension costs will require cities over the next seven years to nearly double the percentage of their General Fund dollars they pay to CaIPERS; 2. For many cities, pension costs will dramatically increase to unsustainable levels; and 3. The impacts of increasing pension costs as a percentage of General Fund spending will affect cities even more than the state. Employee costs, including police, fire and other municipal services, are a larger proportion of spending for cities STRATEGIES TO ADDRESS RISING PENSION COSTS CITY COUNCIL MINUTES 10A 88 FEBRUARY 5, 2018 FY 2017-18 ADOPTED GENERAL FUND BUDGET CITY COUNCIL MINUTES 10 9 FEBRUARY 5, 2018 FY 2017-18 ADOPTED GENERAL FUND BUDGEWULY 1, 2017 PERS Increase OCFA Increase Graffiti Abatement Progmm Funding In the GF Heath Ihsu ants lnrreass Allocation for 3rd COPS Grant Annual Share ofAnimal Shelter Cmssmain. Costs Workers'Yomp 1% Increase Financing of the 800 MHz Final Phase Backbous e Adopted Budget puler tenon, MOU h±eremes 234,235,795• FY 2017-18 ADDITIONAL GENERAL FOND S US Marshals' Contract' �IPI'17�yp 4dlk,. 10.2M 519M Addition of Combination Inspectors 420K 420K Homeless Services Manager 0 114K Veterinarian Services at SAZoo 40K 40K MCfu. INCREASES: Salary Increases ONLY POA-SvvorW "0 2.210 Salary Increases ONLY-SEIUa 0 3601( Salary Increases ONLY-PMAa 0 220K Salary Increases ONLY -POA Non -Sworn' _0 200K Salary Increases ONLY-SAMA3 0 80K Salary Increases ONLY-CASA3 0 52k I Represent, pr,lodsd only, flnnl W. of the <h.n.t,,m 2 yaor Mor,haG'Coneradra) { 'P.t1htIlyaffxt with Cdpan Hmltblpeardna Prem ums:$ higher PFR9 Employee Czutr(byflanfrom 9% ri w12%¢fedi, 01/01/18 'P.Alallyoff+et Mtb Copan Health h,samnce, balance to be dbsorbed wifhiri exbflriB budget Pad.....;, FY 2017-18 Adjusted General Fund Budget: :,$t"M,14 $240.711A 34 CITY COUNCIL MINUTES 10A 40 FEBRUARY 5, 2018 FY 2017-18 GENERAL FUND MID -YEAR REPORT REVENUE & EXPENDITURE TRENDS Quarterly Trends ® I � I•I I� ® Ir Revenues 105/. 249/ 28% 38% Expenditures 24% 26% 23% 27% GENERAL FUND FY 17-18 2ND QUARTER REVENUES VS. EXPENDITURES GENERAL FUND FY 17-18 2ND QUARTER REVENUE VARIANCE s.lmnx $so,36o,000 $ls,9se;oee pmpenyiex 89,594,900 19p19218 Prope�Vlax In llw of VLF. 30,96k459 0 uu] 2],]ea,om 3o,x6a,943 e�amea.uaaaa "AIMN zsx3;ns xoal. tnanora]an 9,900,000 asss,g39 Tall Pevmue 13p1],3]U 2,6R,E36 Medinl Marlryana 3,vOg000 1,II9�023 .1h., General Fund Peuen 53,955,336 20,]11,120 CITY COUNCIL MINUTES 10A"11 FEBRUARY 5, 2018 GENERAL FUND FY 17.18 2ND QUARTER EXPENDITURE COMPARISON VACANCY REPORT AS OF DECEMBER 31, 2017 'STVIIi- PRELIMINARY FY 2018-19 GENERALFUND EXPENDITURE BUDGET FY FY 1118 ADJUSTED GENERAL FUND UP. BUDGET 240,735,022 P,.-, P", to ... diln$]"a 7,,W9 .. .3 - ..A City Man gersorrice 10 0 4!A50(1A&fPRFlnaeefe 10 City Attomey'sOfifce Is 2 0 2 0 dark aFtha 0u d(I 5 1 0 1 0 Community Development 47 ]. I 8 0 Fm,o&Management 104 11 4 IS 0 In(ormatinn Technology 17 0 5 6' 0 Petmnnel Se, Nies 25 B 3 13 0 Planm`ngBL1IWld 72 10. 0 10 2^' Police Depotmeht 631 102 0 102 55 PRCSA & Llbraiy '74 I 2 9 0 Public WprlaAgency 167 1 40 41 0 e ernff.enr w a wm .^rwo. dad. alw..mmE ey�em rnamPPwxuM 'STVIIi- PRELIMINARY FY 2018-19 GENERALFUND EXPENDITURE BUDGET FY FY 1118 ADJUSTED GENERAL FUND UP. BUDGET 240,735,022 P,.-, P", to ... diln$]"a 7,,W9 MJUSolery lnueaeee 3M., SGa[epJe Plan FY 1819 2494500 i 6.4% 4!A50(1A&fPRFlnaeefe 1984990 ,-lICYPd9@' pelEl�lonel funallgfo�iype llloll Fatlllry(VS MenM1eloi^ 11"982 _...�M -eAthln—oalnaeeee AMgtltllflone fa tl,a 9me 1Xao`O UP. BUDGET "Full Ywr£xWnm V,du9 ofMweholls xhwnere 2 -yew ogywm t -$7.2M ul^ 42 CITY COUNCIL MINUTES 10A'Y2 FEBRUARY 5, 2018 PRELIMINARY FY 2018-19 GENERAL FUND EXPENDITURE BUDGET FY 2018-19 Preliminary General Fund Exp. Budget: $250.1M s3aarvi,asw' °-�-:: "p opwma&se.�w�nemdude e m am..,ee muea, 1 smwEe, c.m rnmaea a Wm I a' PRELIMINARY FY 2018-19 GENERAL FUND PROJECTED REVENUES J evelk[Pm1oI V9MnJ�L 019.602 xeoAW II .a,nw.e E>e�,be �ssmAm s,eov�wo 95Wn Im". iwmg enperinaodongem oreaulmJAMhLre[onnabb 94 PRELIMINARY G Y 7 n 7 A_ liQ (: ;: N C b A 1 M 11 ti n d CITY COUNCIL MINUTES 10A13 13 FEBRUARY 5, 2018 OTHER POTENTIAL IMPACTS AND CONSIDERATIONS FOR a on®re.'a n=e Rrenalq FY 2018-19 —Al [15 mn9i PD Re,mme, mn w. , nm f..d'mg q:l fall e emm� .. ronanapmnaf-. [„mm�R mmnnl.rm,efnna�we waoprnOmse innmig f3Hren, wolei loren,[mymv4,n nwiRe"I an, n.n .n anul[v wnalRnwn u,e IXRe.a.e] un.e. ovnm lo,,oa ..ami R mdn,ertanaewe........ a3nnr w .n :m mlmry nen,mom:e[.m,n [eus anlnyoPdeuen, pm9�mnalval ... zrn�' $240 nve pvmi ml �o not Ro �e R19,mrefl aa ua++f]ap u uabil. rvzea, pr,f,I,,1nwo masweaR 235.9 239.3 u, em e,fv&fs LO6;]1 233.9 64GgJt0}IntodC 11e]. 228A FIVE-YEAR GENERAL FUND FORECAST DECEMBERr GENERAL FUND FORECAST $coons $]3f $vo 9]]B $RR $a1B pw X95 9foo 5fas �Rnvenuea - Bpentllturm 46 4 9 P NL 9 9 3 A 9 FY 16-17 FIVE-YEAR GENERAL FUND FORECAST —Revenues -a-Expenditures mt fblevarz llm 1 1' lp[n..,. a on®re.'a n=e Rrenalq m —Al [15 mn9i PD Re,mme, mn w. , nm f..d'mg q:l fall e emm� .. ronanapmnaf-. [„mm�R ui. nwiRe"I an, n.n .n anul[v wnalRnwn u,e IXRe.a.e] iu nWtma ,llrt®Nee&da:tl for 611,bk n[vamn+[1 w oepanm nu sufplemwnl Ruryest[i NOS 244.9 ve[mm Cenn eX[aPmtletl.snj $240 }`�[v vm PtISTfFTCFPPiI,M FIVE-YEAR GENERAL FUND FORECAST DECEMBERr GENERAL FUND FORECAST $coons $]3f $vo 9]]B $RR $a1B pw X95 9foo 5fas �Rnvenuea - Bpentllturm 46 4 9 P NL 9 9 3 A 9 FY 16-17 FIVE-YEAR GENERAL FUND FORECAST —Revenues -a-Expenditures mt 3as9 mea 244.9 m&5 NOS 244.9 $240 235.9 239.3 230.1 233.9 64GgJt0}IntodC $230 228A W to rsntter Ek'dnd)9n Graffiti AbatenioM irana$af. rosx 4F ICE Contract $220 Ptlnr to PERS DiuznM Pate A]sn4uncement COU+ Increases In FY 1748 12/21/16 ....... r 49 CITY COUNCIL MINUTES 10A- 44 FEBRUARY 5, 2018 g4sa 9 £ g2oa goon Pax, $ass $400 $m 4 GF Labor Coats & Authorized Positions sSSetwxea,aa some.,— $129:1 aso „e.uxeraen, -" ala 760 rho ses see Labor Costs 5.5% FY 12-13 vs. FY 16-17 Labor Costs st,ero,ral f Ind nave@3 e, lebms, Me l FON's se lne +$24M rate 95u5% elnm FV 20913 5 -YEAR OF REVENUE & EXPENDITURE TRENDS Mullen, 230.2 226.0 1_.S 220.2 9221.0 224.9 oQ0 __ _... _ _$226.4_. _... 2115 $2119%' $210 205.] -. $20 <,m.td'.... _.... #00 _. $191.]„.. N90 'Y 12-13 %13,14 FY14d6 FY1516-- FI S6 t7p tFY V tem Act06a Ad.le ACWNe ACNe15 x> $ a11I $$ }A 5.v.:uA 3 J ;2 fteven'aAx asaNY.N:NI1L5 m.¢xLYVCNI111UHfS EXpt?nilliS3C06 � d" M le neral q a oanaral r9�a x sewn p a -We p a r x lNo4reI Mrete vf 31. 1O1] 3 •rxdudee'he W.. d,e-rime R.I..., an,.12.1.13 FIVE-YEAR GENERAL FUND FORECAST — FEB. 2018 • Regional Economists are predicting slight economic growth as total GDP growth for the nation will hover around 2.3% in 2018 • Wall Street Journal: `(National]GDP Grew 2.6% at Year End (...]U.S. economy is in unusual territory: not quite booming" • Governor Brown in his Governor's Message as part of the proposed budget warned: `In recent years, I have warned of an inevitable recession lurking in our future, which thankfully has not yet arrived (...] Fiscal restraints are needed more than ever as California approaches the peak of the business cycle." CITY COUNCIL MINUTES 10A1515 FEBRUARY 5, 2018 I • • General Fund Forecast STATUS QUO „sess...pcttsuu9,nnxa'Wwrrmeol#sznj'vzw�*�,tiaurxwM OCPb.11yS AnaRWluuews^ISb9MJ°xWreraet(9aryauea 1 $260 - -- $240 -- $220 - - Na.0 $zoo $180 BudgnFY1]-39 Ael minery 6udgN FY 1929 FY 2921 FY 2122 FY 1919 ,: l Itl: a9uAs%plus lW M:nlrl�pw •EMtlutla tl:e$9.4MM Me-IIn:e Rav¢nue � nmi.. _..._ 53 GOVERNING PRINCIPLES • Be transparent and honest about the problem • Use a comprehensive approach for all funds • Establish a vision, develop a budget that promotes long term sustainability, implement best practices and utilize a combination of cost reductions and revenue increases. • Use a multi-year approach to achieve financial sustainability • Identify core services and focus on funding core services • Provide clear vision and direction from leadership • Engage in a collaborative approach FRAMEWORK FOR BUDGET BALANCING SOLUTIONS • Prepare a long term financial forecast and plan to achieve stability and sustainability • Focus on funding core services • Identify new ways of delivering city services at lower costs • Identify revenue enhancements • Engage with key stakeholders FIVE-YEAR GENERAL FUND FORECAST -FEB. 2018 9�eoe 9ruon fzeoA 6now pioo,u freo.o F£0.i:Av9. vnnuaHnaemeo)55.1MJw NenertluuYe^rs C[FA:Aug.nmunllnneoeeoJ$l 9MJv J:enuffovekewa x.aFtlrvnae r.uwmrrve::aw lr wxo-xo Fv m.xv nm�m xe,e �l d d 01 fd1 1 Or Ilmin rvvvvmptlans Lansldont iw 9 I.F Oat l p'em f F SNtly C nna61 E p d Oevelopn f pod Ra n CITY COUNCIL MINUTES 10A- OA -Y6 FEBRUARY 5, 2018 Council discussion ensued. Councilmember Sarmiento, expressed need to have full range of options for consideration including voter relief, rate of return, anchor source of revenue. Councilmember Villegas, supports a voter -approved measure. Councilmember Benavides, noted thatjail obligation to expire in 2024, voter measures considered in the past such as Utility User Tax; need to be right by the community and voters; focus on economic development; last option is to have measure on ballot, need to be creative and explore all other options. Councilmember Tinajero, thanked staff for presentation; City has three year plan to ensure payment of obligations; consider revenue options such as green striping for vending trucks, manufacturing and cultivation of cannabis, encouraging economic development with conventions such as upcoming speech and debate; focus on arts and utilizing streetcar project. Councilmember Solorio, suggested offering expedited approval process for major developments as means of revitalizing economy; allow for adequate staffing when approving new measures such as cannabis; need to focus on code enforcement and youth programs; use of technology to streamline and be more transparent; be flexible in requirements such as POST certificate of Park Rangers; consider employee contribution towards increasing PERS costs. Mayor Pro Tem Martinez, staff to focus on building revenue; continue to have honest discussion of budget realities; review recommendations by Management Partners developed some years ago when City dealing with budget shortfalls; focus on manufacturing industry such as the brad city; focus on trades including economic development opportunities for residents to succeed; innovation; make general plan and land use decisions to allow for expansion such as Amazon headquarters; strategies need to be revolutionary. ADJOURNED - Maria D. Huizar, 7:25 P.M. COMMENTS CITY COUNCIL MINUTES 10A171 7 FEBRUARY 5, 2018 Clerk of the Council CITY COUNCIL MINUTES 10A- OA -Y8 FEBRUARY 5, 2018