SPECIAL CITY COUNCIL MEETING
777 B Street, Hayward, CA 94541
Council Chambers and Zoom
https://hayward.zoom.us/j/83639328548?pwd=ZUdDZE5IM2R1dHNFbV/oVX|BckdmQT09 CALIFORNA Saturday, May 11, 2024, 8:30 a.m.
The Special City Council meeting was called to order by Mayor Salinas at 8:31 a.m. The City Council held a hybrid meeting in Conference Room 2A and virtually via Zoom.
Pledge of Allegiance: Council Member Bonilla Jr.
Present: COUNCIL MEMBERS Andrews, Bonilla Jr., Goldstein, Roche, Syrop, Zermeño MAYOR Salinas
Absent: None
Council Member Zermeño arrived at about 8:40 a.m.
PUBLIC COMMENTS
Brianne Elizarrey, City employee, highlighted the dedication and compassion demonstrated by Hayward employees; and urged the Council to consider staff behind the City's programs and services as Council discuss their financial future.
WORK SESSION
1. Council Budget Work Session: Review Proposed Fiscal Year 2025 Operating Budget and Five-Year Plan and Receive and Discuss Department Budget Presentations WS 24-015 Staff report submitted by Interim City Manager Claussen and Director of Finance Gonzales, dated May 11, 2024, was filed.
Interim City Manager Claussen announced the item; provided an overview of the agenda and logistics for the work session; summarized the General Fund five-year forecast and proposed Fiscal Year 2025; outlined key cost drivers impacting the General Fund; and introduced Finance Director Gonzales who provided an overview of proposed Fiscal Year 2025 General Fund revenues, expenses and all other operating funds.
Discussion ensued among members of the City Council and City staff regarding: the Fiscal Year 2025 Non-Mutual Aid overtime which is projected at $3.3 million; the potential increase of the Transient Occupancy Tax (TOT) from 8.5% to up to 14.5%, subject to Council action and the potential impact of not increasing it; the impact of using reserves on the City's credit standing, with a focus on maintaining positive ratings by meeting financial obligations; personnel projections including salary adjustments and upcoming labor negotiations; the Other Post-Employment Benefits (OPEB) Annual Required Contribution (ARC) commitments; the allocation of American Rescue Plan Act (ARPA) funds with a study session planned to review and potentially reallocate these funds to address budget shortfalls; the increase in electricity producer tax revenues due to rising energy costs; efforts to address rising insurance and liability costs with lobbyists in Sacramento; projected Fiscal Year 2025 vacancy savings of $6.1 million in the General Fund; and the impacts of interest rate changes on Property Tax and Real Property Transfer Tax, acknowledging the volatility of these revenues.
Members of the Council offered the following recommendations: plan discussion on the implications of not using $1.7 million in General Fund reserves; bring before the Council Budget and Finance Committee, TOT mid-year projections and potential recommendations for ditterent percentage rates and a comparative market analysis; provide an update on the status and expected timeline for new hotels coming online; and track the costs associated with responding to cannabis-related incidents to determine if the $1.1 million in revenue generated from cannabis is sufficient to cover expenses.
Hayward Police Chief Matthews, Fire Chief Contreras, Maintenance Services Director Rullman, Human Resources Director Frye, Development Services Director Buizer, Information Technology Director Kostrzak, Library Director Addleman, Public Works and Utilities Director Ameri, Finance Director Gonzales, City Clerk Lens, City Attorney Lawson, and Interim City Manager Claussen provided an overview of their department budgets which can be found in the Proposed Fiscal Year 2025 Operating Budget. Department presentations included highlights of Fiscal Year 2024 accomplishments; overview of their organization chart; significant changes planned for Fiscal Year 2025; performance indicators for Fiscal Year 2024 and Fiscal Year 2025; and performance objectives for Fiscal Year 2024 and Fiscal Year 2025.
Members of the City Council expressed appreciation for the presentations and provided feedback to each department.
Police Department
Discussion ensued among members of the City Council and City staff regarding the feasibility of implementing a walking a beat downtown to deter crime; goals and metrics for the Youth and Family Services Bureau; Animal Services unit; Hayward Evaluation and Response Team (HEART) program; and target performance indicators for Fiscal Year 2025.
Fire Department
Discussion ensued among members of the City Council and City staff about vacancies in the department; importance of diversity in hiring practices; fire engines and stations; Fiscal Year 2025 target performance indicators; recruitment initiatives such as the Girls Fire Camp; Emergency Medical Services (EMS) Program; and strategies to address illegal fireworks and enforcement.
Maintenance Services
Discussion ensued among members of the City Council and City staff about expanding Disposal Day events; the response to 14,000 service requests; grant opportunities such as with 100K Trees and maintenance; an increase to 2,200 trees this year and a planned gradual growth; the efficiency of litter pickup and compost giveaway programs; illegal dumping in the business area, 2| May 11.2024
SPECIAL CITY COUNCIL MEETING
777 B Street, Hayward, CA 94541
Council Chambers and Zoom
https://hayward.zoom.us/j/83639328548?pwd=ZUdDZE5/M2R1dHNFbVloVXJBckdmQT09 CALIFORNA Saturday, May 11, 2024, 8:30 a.m.
with proposed more frequent monitoring; and additional resources such as cameras to enhance prevention efforts.
Human Resources
Discussion ensued among members of the City Council and City staff about the success of recent initiatives and future plans; the employee engagement survey; reallocated positions to support Human Resources through savings from freezing positions such as the Jail Administrator and a vacant Code Enforcement Inspector; performance indicators for probationary completion target goal; the Human Resources staffing ratio and management structure; and recruitment and onboarding efforts.
Development Services
Discussion ensued among members of the City Council and City staff about Code Enforcement personnel and suggestions to increase capacity due to extensive responsibilities; the need for a prioritized list of code enforcement areas; the importance of education and legal pathways for street vendors rather than punitive measures; the integration benefits of moving the Housing Division under the Development Services Department; stalled development projects, attributing delays to financial issues and utility coordination; and the complexities and challenges of sidewalk vending ordinance enforcement.
Information Technology
Discussion ensued among members of the City Council and City staff about concern about the lack of a dedicated cybersecurity position within the IT team; and performance objectives such as ERP optimization. The following were recommended: Fiscal Year 2025 percentage of employees up to date on cybersecurity training should be 100% and should be a condition of employment with a duty to report incidents; and partnerships should be explored to improve community-facing services.
Library
Discussion ensued among members of the City Council and City staff, and the following recommendations were provided: evaluate the current state and future facility needs of the library; explore partners, such as the Keep Hayward Clean and Green Task Force, to establish little free libraries in targeted neighborhoods; provide more granular data on library usage, including the number of cardholders and active users; prepare an annual report for Council; consider providing numbers in addition to percentages when reporting on goals for performance indicators; consider increasing funding for the Library's tech lending programs and materials collection; explore volunteer-led programs for additional community services; and consider expanding the current fence to improve security at the Weekes Library.
Public Works and Utilities
Discussion ensued among members of the City Council and City staff about: the department's ongoing performance despite numerous vacancies; the importance of filling vacancies and the close collaboration with Human Resources to expedite the hiring process; the progress of the Safe Routes to School project and the completion timeline for La Vista Park; Fiscal Year 2025 performance indicators specific to the metrics for water and sewer pipeline replacements; and concerns about maintaining adequate hydration for City landscapes, especially considering the age and condition of the infrastructure.
Finance
Discussion ensued among members of the City Council and City staff about: the completion of significant projects such as the City's purchasing and procurement process review and the first- time homebuyer program for employees; and the ten-year financial model. The following recommendations were provided: consider facilitating the City's long-range financial plan in a group setting; continue to provide innovative approaches to presenting financial data, ensuring transparency; and the need for further sessions to delve into the long-range financial plan and explore additional funding opportunities, including grants, to support City projects and services.
City Clerk's Office
Discussion ensued among members of the City Council and City staff about reinstating the US Department of State passport program; handling a significant number of public records requests; the potential cost of transitioning to district-based elections; and the potential need for additional staff once the City transitions to district elections in 2026.
City Attorney's Office
Discussion ensued among members of the City Council and City staff about insurance costs which are anticipated to continue to increase, understanding that necessary adjustments could be made at mid-year.
City Manager's Office
Discussion ensued among members of the City Council and City. The following recommendations were provided: consider a policy around equity when districts are formed to mitigate competition among various districts; develop staff training around antisemitism and anti-hate in alignment with the City's no room for racism initiative; explore ways to increase the community agency fund through the Community Services Commission process; improve transparency on who responds to constituent inquiries to avoid duplicating efforts; consider providing support for sidewalk vendors to transition into brick-and-mortar businesses; increase presence of city ambassadors and mental health professionals downtown; continue the People's Budget projects; evaluate the 3.1% decrease in Animal Services budget and potentially restore its funding; and ensure there is a link to the county website on Access Hayward for street vendors.
4| Ma! 11.2024
SPECIAL CITY COUNCIL MEETING
777 B Street, Hayward, CA 94541
Council Chambers and Zoom
https://hayward.zoom.us/j/83639328548?pwd=ZUdDZE5IM2R1dHNFbVJoVX/BckdmQT09 CALIFORNA Saturday, May 11, 2024, 8:30 a.m.
Mayor and City Council
Interim City Manager Claussen highlighted Fiscal Year 2024 accomplishments, significant changes planned for Fiscal Year 2025, performance indicators for Fiscal Year 2024 and Fiscal Year 2025, and performance objectives for Fiscal Year 2024 and Fiscal Year 2025.
Members of the City Council acknowledged Council Member Bonilla for the creation of the Council Public Safety Committee; expressed interest in receiving data on the Point-in-Time (PIT) Count; confirmed the Council's equity adjustment was added to the budget; requested to consider adding the $100,000 request for library materials; requested to discuss at a future meeting the implications of not using $1.7 million in General Fund reserves; asked for more information about the long-term vision of the Hayward Economic Development Corporation and how it will be managed; and requested information on how to achieve goals towards 24- hour mental health support.
Mayor Salinas thanked City staff on behalf of the Council for the presentations and the logistics related to the work session.
It was noted there would be a review of the Capital Improvement Program for FY 2025-2034 on May 7, 2024, and the budget public hearing on June 4, 2024.
ADJOURNMENT
Mayor Salinas adjourned the City Council meeting at 2:19 p.m. to a Council Closed session.
APPROVED
ML
Mark Salinas
Mayor, City of Hayward
ATTEST:
cutien eur
Miriam Lens
City Clerk, City of Hayward