CITY COUNCIL OF THE
CITY OF HOLLISTER
Minutes of Special Meeting
June 27, 2022
PUBLIC PARTICIPATION NOTICE
CALL TO ORDER - 5:00 PM
Vice Mayor Rick Perez called the meeting to order at 5:01 PM.
PLEDGE OF ALLEGIANCE
Pledge of Allegiance lead by Councilmember Dolores Morales.
ROLL CALL
The Special Meeting of the City Council was called to order by District 1 Rick Perez on June, 27, 2022 at 5:01 PM in the City Council Chambers at 375 Fifth Street, Hollister, CA 95023.
Attendee Name Title Status Arrived
Ignacio Velazquez Mayor Absent
Rick Perez District 1 Present
Rolan Resendiz District 2 Absent
Dolores Morales District 3 Present -4
-
Tim Burns District 4 Present
Mary F. Lerner Interim City Attorney Present Christine Black City Clerk Excused
Carlos Reynoso Police Chief Absent
Brett Miller City Manager Present
Mayor Ignacio Velazquez and Councilmember Rolan Resendiz are absent.
VERIFICATION OF AGENDA POSTING
Information Systems Director and Acting City Clerk Paul Da Silva reported that the Agenda for the City of Hollister Special meeting of June 27, 2022, was posted on the bulletin board at City Hall on June 44, 2022 at 1 :30 p.m. per Government Code Section 54954.
A. CITY COUNCIL OF THE CITY OF HOLLISTER
1. Resolution No.2022-132 a Resolution of the City Council of the City of Hollister Adopting the Annual Budget for the City of Hollister for the Period July 1,2022 to June 30,2023
City Manager Miller held a presentation for the updated Budget for Fiscal Year 2022- 2023 with the revisions that Council had requested.
Councilmember Morales asked about the addition of two positions under fire prevention and if the necessary equipment was also budgeted for those positions.
Fire Chief Bob Martin Del Campo stated that they have the vehicles that are needed to employ these inspectors.Most of the equipment that they need offhand is going to be off-hand, they have ipads for them, etc. As far as other equipment and office space,it is the intent to put them into place and then purchase those items after the fact.
Councilmember Morales stated normally when there is a position allocated it should include necessary costs for IT equipment,etc.Normally is$20-50k.There should be an allocated amount for the necessary equipment that is needed for these two positions. City Manager Miller stated that it can be done that way, but Fire Department has a large budget compared to other departments,so it can be done in the mid-way budget.
Councilmember Morales stated she hasn't seen a mid-year budget done. If we actually do a mid-year budget,then that is fine.Do you have a list of bigger projects? City Manager Miller stating that we are going to do a CIP budget request/project list.
And those will be brought at that time. Councilmember Morales asked if the other department heads are going to put in their larger projects that are needed?Will that be a part of that meeting?
City Manager Miller stated that the Department Heads are not ready to have a lengthy discussion of the department functions, but want to do it at a later date.
Councilmember Morales stated the department heads should be ready to talk about their roles in supporting the City of Hollister. Is the one-time funds off-set by revenue? City Manager Miller stated that these are the funds that are increased (presentation).The slides only show the increased funds.They are the funds that will continue to increase/come in while development continues in Hollister.
Councilmember Morales wants to be able to distinguish on-going revenue. City Manager Miller stated ARPA funds were not used to develop this document.
Councilmember Morales stated the ARPA funds have still not been allocated. IT Infrastructure has not come back, is that coming in August. City Manager Miller stated Information Systems and Technology Director Paul Da Silva is still working on the Planning & Building Software program. Information Systems and Technology Director Paul Da Silva commented that the expansion of the fiber optic infrastructure will be part of the Capital Improvements Plan,extending fiber out to the fire station 2 and wastewater treatment plant. Staff is looking into grants and ways to fund, and are looking into different grant programs in coordination with San Benito County and other agencies in applying for CTEF and CPUC grant funding available soon. It will be part of the CIP budget which will come back in August.
Councilmember Morales asked for a training fund for staff to make sure that they can be educated. City manager Miller commented each department has a training City Council Monday,June 27,2022 Page 2 of 15
budget.Councilmember Morales asked If every department has the budget,normally they have mandated requirements and does every department have adequate training budget? City Manager Miller stated additional funding can be added if needed at the mid-year budget.Councilmember Morales very clear expectations for training of all staff at all levels.
1 Public Comment:
Renee Wells. Executive Director of the Economic Development Corporation.Wants to ask for renewed funding for the EDC.EDC wants to continue working with the City of Hollister to retain and support businesses as well as assist new business in the City of Hollister.Wants to work with the grant writer to identify sources for funding and support of economic development.We work closely with the County with the ED committee to collaborate on initiatives that bring prosperity to the county,wants to have a similar relationship with the city.If the EDC contract is renewed,will promise to provide value to the community.
Robert Quaid. Lives in San Juan Bautista. Grew up in Hollister, and was raised in Hollister. Asking to fund the EDC, it is a wise investment. The City of San Juan Bautista is supporting the EDC. It is an investment for the community.As a formal council member in SJB,I know that you have to spend tax dollars,and the EDC is a • good investment. City of San Juan Bautista is in the process of hooking up to city sewer system, and the SEDS grant will be helpful in doing that. EDC is an investment for the City of Hollister.
Mary Hubble. I am a fourth generation San Benito County resident. Managing partner of Biannchi Cassidy and Pope,currently the treasurer,on board since 2009.
It is important to remember that state and federal governments look favorably on collaboration with the city and county.The way to show collaboration is to support us. City County and San Juan Bautista should work together. It would be great to support us so that we can be supportive of a viable community.
Aaron Johnston.Day job with Granite Rock Company,which has been in Hollister for about 122 years. The heath of the community is important for himself and the community. Has been working with EDC for 10 years and is on the board. The economic development strategy is about to expire.Without the SEDS,they cannot apply for grants.The EDC has sought grants to hire a consultant that will help us get specific SEDS that will unlock the door for specific federal funding.We are looking at a trillion dollars of funding that could come our way.We need to be a resource that will give the city, county, and San Juan Bautista the resources they need to fund projects such as water,fire,all kinds of projects.We need to resource it so that the City of Hollister has that document. Keep in mind that the board is all volunteers.
Their consultant will talk about the SEDS and opportunities. It is very critical right now because they are going to go through the grant process right now. We would like to see the partnership with the City that the County and San Juan Bautista have committed.
Marie Jones. Consultant that is helping the County of San Benito with comprehensive economic development strategy. Worked as the community development director in a small rural town in northern California. It is important however to participate in this process because it is the way that your community can access a wide variety of federal dollars.The previous SEDS was developed in a way that wouldn't pass the requirements today. The purpose is to identify projects to City Council Monday,June 27,2022 Page 3 of 15
become eligible to apply for federal dollars.If the project is listed it is easier to apply for funding. It can be applied for projects for water improvements fire and fire escapes and fire equipment.You can get funding for Economic Development and for development projects,employee training.There is a 1 million dollar build back better fund that will be distributed through the Economic Development strategy, and only those communities that list the projects will be eligible for that funding.
Public Comment ends.
Councilmember Burns stated he is disappointed that Mayor Velazquez and Councilmember Resendiz are not here for the important conversation and understands that the goal is to pass the annual budget by the end of June or the beginning of July.What are the consequences of not passing tonight?City Manager Miller stated if the budget is not passed by July 1 u,we do not have the means to pay our bills.Councilmember Burns commented the federal government and state have challenges like this as well and they find bridges to buy time and how do we do that? City Manager Miller referred to City Attorney Lerner,who stated the city can meet its existing obligations, such as payroll and other contractual obligations. The City Council can pass some sort of resolution, and then Brett can bring back a report. I wouldn't recommend that council move forward without taking some kind of action tonight, either to schedule another special meeting or to pass a motion to continue those obligations.
Councilmember Burns agrees with Councilmember Morales about process moving • forward. This may have been a reasonable process before.Wants a conversation with department heads beforehand. Has a reservations about the process, not the content.Wants to change things soon because it doesn't work for him.It has nothing to do with City Manager, it is past practice, but it is not best practice. City Manager Miller stated this worked for past council,but we can present what the current council wants to see.
Councilmember Burns stated in previous council meetings,the presentations...is in support of moving away from a consultant firm for building department. Preference would be for a combination. This budget includes a building official and inspector.
This is currently paid for through a consulting firm?City Manager Miller stated it is paid for by the use of the consulting firm.Councilmember Burns states that part of this is from complaints received.It could be communications issues,but believes it is deeper than that. We have a lot of moving pieces with personnel. This is not an additional cost, it is just not using a consulting firm, but it would probably increase our costs. City Manager Miller states the costs are probably about break-even. But there is ownership if they are part of the city.Councilmember Burns states there is a value of having our own staff on board.
Councilmember Burns asked if the City had a rainy day fund of$300,000 and we are recommending a$900,000?How did this come about?It is not a lot of money given the 10 million dollar reserve. City Manager Miller stated we had a$300,000 budget and then stopped funding it.Then covid happened and we were trying to spend our budget in other ways.We are recommending to increase it as we keep having good years.Councilmember Burns asked if I were to make a motion to change the budget from $900K to $3 million, it would not take the funds away? It would be more restrictive or require further council review. City Manager Miller commented yes.
Councilmember Burns would like to make a motion to increase the rainy day fund to City Council Monday,June 27,2022 Page 4 of 15
$3 million.This would reduce the overall budget.City Manager Miller stated there is a policy that the fund does not exceed the 20% reserve policy. Councilmember Burns asked who's policy is that?City Manager Miller stated City Council. It can be changed at any time.Councilmember Burns states$900K is not a lot of money to a municipality.Wants to see a policy toward saving money. Councilmember Morales has hesitation on ARPA funds.Discretionary money is not going to come back once it is spent.There was a time when Hollister didn't have a rainy day fund,period.But I am not hearing that bumping it up to 3 million is not unreasonable. City Manager Miller did quick math and it looks like$3 million would still meet the 20%policy.
Councilmember Burns continued with Lets talk about fees for development.Last time it was about$100-$150K in the account?Point is, I know that this council recently split in a decision to not bring Accela forward. But there was a decision to have a committee to bring some recommendation forward. How do we intend to pay for that?I have heard comments from San Juan Bautista and they spent$7k dollars and they have no license fees. I am concerned that we need to move forward in technology,and we should have the money set aside.City Manager Miller stated the total for this fiscal year is$203,500.And we budgeted 200k for next year.
Councilmember Burns stated he doesn't want to do something that we can't cover or take away from other things such as looking into bringing shot spotter on board.
Police Chief Reynoso stated he has had conversations with shot spotter, and their prices have gone down significantly. Working on a presentation for August.
Councilmember Burns commented he looks forward to it. I know that the council wants PD to have all of the tools necessary to provide all of the services for the community. Relieved to see$100K for cameras.Graffiti is one of the challenges at the skate park.We have an agreement with the county, again if there is a risk and we have the ability to minimize the risk, wants to make sure that we have the resources for that.Also wanted to address concerns with not having enough police officers. One of the concerns is that we don't pay enough to be competitive. City Manager Miller mentioned there is a draft of the salary part of the study.Hopefully in a couple more weeks we will have the budget part and a recommendation.
Councilmember Burns wants to give PD as many positions that they need in order to provide the protection for the community that we need. We need to start with providing the compensation that is necessary so that the position can be filled. Has seen in other positions that they went from being unfilled, to providing competitive salaries and are some of the highest paid in the valley.Wants to make sure we have enough money to do that.Would be willing to consider before the mid-year budget.
There has been a perception of 3%,and everyone gets paid the same.However, if you want to be paid as an engineer, you need to go to school and have the education. If you want to be paid as a police officer, I want to be competitive with Gilroy, etc. I want to know what PD's needs are as an agency so we can fill those.
We need a communications center, which is not in the budget, but it could be a millions of dollar expense but to the benefit of our community.Does Councilmember Morales have info on grants?We need to have resources to make sure we have a nice downtown and parks, etc. City Manager Miller stated we are trying to find revenue sources.I will say looking at PD in the comp study,we have proof now.
Councilmember Burns commented we are going to budget conservatively. Even though the resources may exceed the budget.City Manager Miller commented if you build your budget based on development,that part of our budget could end almost instantly.When COVID first hit, all construction needed to stop immediately.And it City Council Monday,June 27,2022 Page 5 of 15
did start up again.But if we were to budget at that level,we would have had to lay off a bunch of people like other cities.However,we don't include that in our budget,so • we were protected against that change.When it comes in better than we expect,that is when we have money to do extra projects or increase the rainy day fund.
Councilmember Burns states back when I was new on the council, there was a request of about 250k dollars for a street sweeper,but by now the cost has gone up.
My question is what happens in 5 years?Councilmember Miller states they usually last longer than five years.This will be the backup, so when the one that we have goes down, we will be able to keep up the streets and parks.We should be on a rotating basis for these pieces of equipment.We have looked at an electric one,and while we might not be able to get this one, but maybe in the next one electric equipment will go down.
Councilmember Burns asks what do we do in five years when the lease is up.City Manager Miller states Government leases are different than others.At the end of 5 years,we will buy it out for$1. Councilmember Burns asked how do we own it after 5 years. City Manager Miller states it is$70K per year, and then we own it after 5 years.Councilmember Burns asks do we get a better deal if we buy it right now?City Manager Miller states you wouldn't have interest charges,but with the interest rates • as they are right now,it is still the best way to buy it right now.Councilmember Burns comments when I came on council we talked about the rates. If we purchase this right now, it doesn't affect the rates?City Manager Miller states we have someone looking at rates,and the rates are factored into the cost.
Councilmember Burns stated lets talk about general fund one time expense where it talks about$50k dollars per council member for studies. I want to expand to allow each council member to spend$50k on things for the City.When I walk,I know that there are areas in my district where sidewalk could benefit from sidewalk being replaced. Also talking about wall maintenance and painting walls.Also had people approach and say if you are going to spend$250k on a sign for downtown,why not update a sign downtown?If I don't need to spend$50k on particular studies,I would like to have access to funds for those type of things,whether it be fixing walls,fixing sidewalk, additional signage. City Manager Miller stated that is the idea, but we didn't have a particular word. Councilmember Burns commented call it a discretionary fund for certain projects.City Manager Miller stated we understand the request.
Councilmember Burns commented that brings up we've recently changed our law firms. I want to make sure that we have adequate resources to cover their needs.
Want to make sure that there is money there.This law firm has amazing resources and skilled and talented people. I would encourage as much as possible to keep things in house.There is a benefit to the community with consistency.We have only been working with them for 1 month, but you get what you pay for. And we are getting the best a most appropriate outcomes. Final comment is that I request that we set aside money for non-profits.I saw an email from city manager on how we are going to score those. We saw a presentation from EDC tonight. We saw a presentation, and there is real potential. How to we get there with EDC.Would that go through the non-profit items or line item? City Manager Miller states it can be as a line item, or scored with others. Either way. The Council could provide direction. --• We could do an RFP process if council wants.The SEDs process is something new compared of last year,if you are looking at a one-year,it might be good to fund them this year.And then next year you could budget so much for ED and let others know.
City Council Monday,June 27,2022 Page 6 of 15
Councilmember Burns asked if we gave them$100k last year?City Manager Miller stated Yes.Councilmember Burns added and last year San Juan Bautista gave them nothing? But this year it sounds like there is something new. City Manager Miller doesn't know specifically, but it sounds like there was a change from San Juan Bautista to this year.They have not contributed in the past.
Councilmember Burns asked to reopen public comment to listen to subject matter experts.City Attorney Lerner stated it is the council's discretion,but if it is opened for one,would need to be opened for all. Councilmember Burns reminded that his first motion would be to change the amount of rainy day to$3 million.Seconded motion to reopen public comment.
Councilmember Morales is in support of motions, but wants to make her comment before reopening. In past years there have been an increase in interest rates and a drop in the housing market.There are two ballot measures that would affect the City of Hollister and County if passed. Have we looked at that and considered the impact?City Manager Miller stated we have looked at it,but we are still figuring out what the impact will be. Most of the development has been in the county.
Councilmember Morales stated the reason I ask is because she works with one of the richest counties in the country. We are projecting that it is going to be poorly.
Appreciates the passion for the Hollister Police Department. However, I wanted to address the other departments in the city. We need to address staffing levels and salary. I do support adding additional funds to the rainy day. However, I want more information before we determine an amount.I can support 1,or even 2,I don't know if I can support 3.We need to do an analysis so that we can review.Everyone else is predicting a downfall and Hollister is predicting good results.Supports planning and the need for software. We need to get rid of the contractor, it is part of the complaints.Seconds motion to reopen the public hearing.
Vice Mayor Perez commented the chamber of commerce and the Downtown association and EDC as vital to our growth and sustaining our city and business.The analysis on employees and emergency personnel,is that also on city workers?City Manager Miller answered all positions. Vice Mayor Perez continued the planning • department needs something done. Part of it is getting a program for them to use.
We need to look more in depth at that.Talking earlier about a discount on utilities.
Do we have records of who is getting those discounts?City Manager Miller stated Finance has the records. Each year the people have to verify and make sure they meet the parameters. Vice Mayor Perez asked if the City gives credits? City Manager Miller responded only if there is an error on our side. Vice Mayor Perez. comments on Page 49. Community Center grease trap$100k. Jovenes uses that, and they serve the community. There are 50 people on hold. The baby boomer society is turning into seniors If we can only serve 250 and we have 50 people on hold waiting for food, I'd like to see that when the kitchen is remodeled, it should be modeled to produce more meals to service the community.I don't want the elderly to think that we forget about it.City Manager Miller responded they need to look at if it is a budget for food, or if it is the kitchen holding them back. Vice Mayor Perez. $100k for grease trap,plumbing,restroom is too low. It should come up.How did we get that number?City Manager Miller responded it's a staff guestimation.Vice Mayor Perez continued, it is too low.The community center is not just for seniors,it is for everyone.The number should come up.
Motion to reopen.3-0-0-2.
City Council Monday,June 27,2022 Page 7 of 15
Public Comment
Andrew Shelton. EDC board member, dad, husband, business owner downtown. I joined the EDC at the tailend of the last seds process. It seems that the concern for our community is the storage of water. The EDA is prioritizing this type of funding. • With growth that the community has experienced,the amount of water has gone up, and this is going up for homes and businesses.The EDC has outlined this as part of the SEDs process.
Rachel Reed. EDC volunteer board member and cochair of the edc permitting committee.Wanted to highlight potential funding opportunities.The SEDs is a priority for EDC funding programs. Every year our region experiences wildfire related emergency situation. In 2022 Humbolt County received funding from SEDs program • for small business loans known as revolving loan funds. The revolving loan funds must line with the seds programs.The revolving funding in Humbolt county allowed for a state of the art pump testing system which is a vital part of the fire department's maintenance system. The EDC is in the process of updating the 5 year SEDS to ensure that entities in the County, Hollister, and San Juan Bautista can come together to identify beneficial projects. Consider renewing funding and partnership with the EDC.
Previous Speaker, Robert Quaid.City of San Juan Bautista is contributing $5000.
San Juan Bautista is smaller than Hollister,so this is an equitable contribution.You were going to apply for grants for internet connectivity,this is a big area where the funds can be used.
Previous speaker.Aaron Johnston.Wants to make self available for questions.
Councilmember Burns asks Aaron Johnston,Can you tell me how much the county contributes?Aaron Johnston responds, 5 year commitment of$100K per year from both county and city.This is what we would be looking for.It will be put to good use.
Councilmember Morales asks Aaron Johnston,it is difficult to make decisions without proposal, amount, etc. You talked about an important project, but the city has invested in the managers to be a grant writer trainer, liason with stakeholders. In addition we are hiring a grant writer that is being funded by the County and San Juan Bautista. I don't understand how the EDC will be working with the two additional resources.Didn't hear how the EDC would be doing that.Wants to understand how the contributions will benefit the city.These are basic things that any decision maker needs to know in order to make decisions with regard to funding.We have the HAD, the chamber,and EDC.We are funding three agencies which do similar work, and they are not collaborating. It would be a requirement that the three agencies work together and collaborate and leverage funds, if I were to allocate funds to any of these organizations.They should work together and with state and federal officials to understand and problem solve the issues of why we are not getting any funding.This info is required in order to provide funding to those organizations.
Aaron Johnston repsonds,The mechanism of funding would be the same MOU that was used in the past,with modification to include collaboration with those agencies.
We need to work together, and not duplicate efforts. We could advance the collaboration with funding.The MOU could be crafted to address that concern,and we would like to give you an update. Wants to be agendized, but wanted to get together during the public comment period.We have put out a business plan in the City Council Monday,June 27,2022 Page 8 of 15
past. Economic development is a team sport that requires a lot of players, and we have a great team on the EDC right, but the team needs to exist between the City and the state,the City and EDC,the City and the County,the County and the state.
The EDC is the glue. There are monthly meetings where we talk about these projects. Wants a similar committee to the County and San Juan Bautista's committees to ensure that your concerns are being addressed.
Councilmember Burns responds we have the capacity to agendize this and bring it back for a presentation. Agrees with Morales on measurable and ways to track performance.It doesn't have to be a yes or no tonight.City Manager Miller responds the budget can be changed at any time. If you want to agendize that and bring it back,we can do that.
Councilmember Burns responds he wants the presentation at the beginning of the meeting.We have had some meetings that go until 1:30 in the morning.Wants it at the front of the agenda.Asks the council to consider that.There are second chances, and San Benito is not the only county where this is being considered. There are opportunities that could be missed.Wants to know more about SEDs, I don't know what it is.This has peaked my curiosity. There is strong opportunity and potential, and collaborating is great.Wants San Juan Bautista to contribute more.They have equal if not more cultural events than we do.Wants to work collaboratively with all the county, and they could contribute$7,500 or$10,000.We would not necessarily contribute less,but everyone has to go all in.
Public Comment ends.
Counilmember Burns asks what is the $200k TOT reimbursement. City Manager Miller responds the past council made an incentive program that if someone built a hotel, the City would reimburse 70% of the TOT back to the hotel owner, up to 2 million dollars. If a hotel owner builds a 3 star hotel or bigger, then we do this.
Councilmember Burns asks how many have we agreed to? City Manager Miller responds 1, but there is a second which may have this agreement that is under construction.Councilmember Burns continues I want to increase the TOT and I don't want to give it away.We should revisit. How did we arrive at$15k for library?City Manager Miller repsonds Library system is in the county. Property tax is based on that system. Should we contribute more to it or not.We know that they are always hurting for money, but this is our part. Councilmember Burns continues we should contribute more. The library should present and say how many of the patrons are from the City of Hollister.Whether this is a county resource or a city resource,$15k per year seems too low. City Manager Miller responds the calculations were compared to other counties was in line for operations. The County gets property taxes for the library.Councilmember Burns continues I don't know what the number is,but if we move to contribute$15k today,we could revisit this in the future.
Councilmember Burns continues moving forward, one of the concerns has been using contract services.This was necessary for the maintenance of the soundwalls, etc.Thank you to Tina,for that.At some point,wants to get back to using internal services for those things.Wants to have a conversation with Public Works Director, we could have 3-4-5 employees for the price of the contractors. Certainly soundwalls, and graffiti, but if you make them a maintenance worker, then that should be their priority. There are soundwalls that haven't been maintained since they were constructed. Wants to have a conversation from moving away from contract employees.City Manager Miller responds one of the areas that we wanted City Council Monday,June 27,2022 Page 9 of 15
to look at is janitorial services.They are going up each year,and perhaps it could be done with two maintenance employees. It might be cheaper.We will be looking at that and see if it is cheaper to move away from contracts.
Councilmember Burns continues, the arborist contract is also concerning. I am looking for value, and want to bring those resources in house. There are safety concerns and risk with in particular boom trucks.Final question,in regards to parks, the quality of parks shows the vitality of a neighborhood. What is the cost of acquiring the property on 7th, the vacant lot, and most places have downtown greenspaces.People that don't know our city will be looking for that park.The vacant parcel zoned for commercial just past and behind the goodwill on Sunnyslope,that would be an amazing park. It is isolated, located close to commercial. We should pursue the acquisition of that property.It could be a greenspace.City Manager Miller responds staff is looking for those properties. That property is scheduled for development.The one on San Benito and 7th,the property owners are not interested in selling.Some of the properties in Hollister are in trusts and they don't want to do anything with them.The other one was where the Chinese restaurant was, but they !1 are looking for development opportunities there as well. Councilmember Burns continues,the one on Sunnyslope should be a park.
Vice Mayor Perez asks a question for the fire chief. I have seen the tools that are being used and they are outdated and heavy and limited, I picture our firemen walking down an embankment carrying the heavy equipment.In the budget,are you planning on replacing those?Fire Chief Martin Del Campo responds, Yes, with the new trucks,they come with that equipment.However,Chief Dover and Delia Ramon were able to write a grant to get about$300k dollars.We try to pursue funding before coming to the general fund.This was a regional grant,Aromas,San Benito County, and Hollister are going to get light weight state of the art,electric equipment.
Vice Mayor Perez comments we have a difference of$52,500 for the Chamber and $75k for HAD.Why is there a difference? City Manager Miller responds that what was negotiated with each of the organization when their MOUs were forwarded to the council.Vice Mayor Perez asks Chamber has 2 more years?City Manager Miller responds Chamber has one more year in their agreement.
Councilmember Burns comments there was a call from the chamber for a compliance issue. How are we going to address that compliance issue with relation • to the budget?City Manager Miller responds,the MOU is with the Chamber.When the MOU ends,they want us to make an MOU with the Chamber Foundation. If we fund them,they should have all of that sorted out.Councilmember Burns continues, The Chamber Foundation is not in compliance.If they wanted additional funds,they could always come to the council and request additional funds.There is a history of perception with our fire department consistently coming in over budget with overtime.
How has this been adjusted for that?City Manager Miller responds,the budget was adjusted for an additional$100k. However,the fire committee needs to discuss this further. They are doing a study to do operational analysis to give advice on fixing that.
Councilmember Burns continues,there was a request to do an independent audit on • the fire department to look at this from a numerical data perspective.City Manager -- Miller responds the firm that is doing the study will be going through the overtime and determine if it is appropriate.Councilmember Burns continues,what do we need to City Council Monday,June 27,2022 Page 10 of 15
move that forward and put that out for an RFP. It should be a CPA qualified auditing firm.
Vice Mayor Perez asks this is the contract that we set out from the fire committee? City Manager Miller responds,Yes.The committee recommended funds to send this out.I will ask if they can look at the overtime and do a deep dive into the overtime.
Councilmember Burns comments, I saw a previous report that was done by a consulting firm and that report was consistent in that this was not unique to the City of Hollister. Where I want to be at the end of this conversation, is to resolve the problem.Let's figure out what the real problem is.It seems that there is a history that the fire department is consistently coming in over budget,and the reality is if we have a need, then we should provide them with the resources that are needed. If it is predictable it is preventable.We need the technical expertise;to establish what the problem is. I want to find a fix.City Manager Miller responds,Yes,that is what the • study would do.We can add onto that contract to dive into the overtime to see if it is an issue. The issue has always been said that if we have more staff,the overtime would go down,but we have more staff and the overtime is going up.
Vice Mayor Perez asks how many years have they been over budget? Fire Chief Martin Del Campo responds 9 years.Vice Mayor Perez continues on a smaller scale, when I look at my budget at home,if I budget$300 for food,and I consistently spend $500,why don't I change the budget.City Manager Miller responds under previous Fire Chief,the request was to change the budget to cover the overtime costs.Vice Mayor Perez continues,If we raise it by$100k,we will be over budget by how much? City Manager Miller responds,there is the overtime,and then there are the overtime payouts?They are separate line items.Vice Mayor Perez continues,we need to not look at the past budgets.We need to look at the budget this year. How much were they over budget this year?City Manager Miller responds about$800k.You can see for 2020 is was$1.8 million.2021 is was$1.7 million, now$1.4 million.We need to look into are there ways to look at the schedule to correct this issue.A lot of overtime in the past was people out on workers comp and vacancies. Vice Mayor Perez continues we need to look at how much money the fire department made through strike teams. They brought in a significant amount of money. I don't see a good balance.City Manager Miller responds,we have broken out the strike team overtime. • The$1.7 million was before we broke that out,so about$400k was in strike team • overtime.
Councilmember Burns asks, is there a way to, on a monthly basis,to review in a • snapshot the fire department budget?I don't want to have these conversations in 9 • months from now about how the department is x amount in over budget.I know there will be time to get a consultant on board.I would say this about other departments as well, but I am not aware of other departments having these concerns. Picking a number like$100k is not a solution,it is a short term solution to a long term problem.
We need to know more than mid-year. If things go as they have been,at mid-year it will be the same. City Manager Miller responds, we can give you an email at the beginning of each month,or we can do it at a council meeting.Councilmember Burns continues, he wants the Chief or his designee to present on it in terms that can be easily understood.
Councilmember Morales comments,I have these conversations all the time.We run a 24/7 facility, and it is difficult to understand for someone that doesn't deal with staffing and overtime. My recommendation is that the fire committee work on this City Council Monday,June 27,2022 Page 11 of 15
because there are mandates and statutory regulations, etc; people that must do training and all of this means that other staff have to do overtime.There needs to be an anlaysis. Unless someone does the analysis,the numbers will not matter. If you want to add additional time and effort to our staff that doesn't have the time to do this. It is really important to have the numbers at hand to figure out the staffing.
Recommends to push it down to the fire committee,so that it can be problem solved at the root of the issue.
Councilmember Burns comments, my recommendation would be the this council or the full council add an additional management analyst position to provide that data and the interpretation of the data that could then come to a council meeting, right now we are talking about the fire department, but we could talk about another department at another time. I don't want to add additional work to our staff, but we should put this in the finance department and this be their sole job. The fire committee is taking a while to get up and running during covid,and I was part of it at one point,but the council is making many decisions tonight and move on to the next item. If there is a dedicated staff member whose purpose it is for this,then it won't get prioritized over. I've supported the move of code enforcement to Police Department,and the CSOs should not be doing other duties unless they have time.
We should get that person on beginning with the Fire Department. It is not okay for the fire department to be over budget for nine years.The Council should move this forward.My recommendation would be to get another management analyst to break down the data for the council to understand.
Vice Mayor Perez adds, I think we should kick this down to the fire committee. I remember that they were talking about reviewing everything. We should move forward with this, but not kick it down the road. The next meeting is August. City Manager Miller reminds Council that all council, commissions, and committees are C` dark in July.Vice Mayor Perez continues,the next meeting is the third Thursday of August.
Councilmember Burns comments, I want to move forward with a management analyst position.I'd like to not have this conversation 9 years from now.This person could be a resource to the committee. As we move beyond this,there is always a need for a competent management analyst. My request would be to ask the City • Manager to get an MA to start this process.Councilmember Morales agrees.
Vice Mayor Perez asks Police Chief Reynoso if there was anything he wanted to add. Police Chief Reynoso comments, I brought to the City Council a request in the budget for the overtime on Wednesday and Saturday for animal control.We have • had no animals adopted during those hours. The City would have to consider increasing our budget by$18k in order to have those overtime hours on Wednesday and Saturday. Or we can have a commitment from our staff to hold open for someone if they cannot make it on time.Do you want us to continue opening up on Saturdays and Wednesdays, or do you want us to go back to what is before.
Councilmember Morales comments, thank you for providing the data .if it is not providing the outcome that was intended, then we can go back to what we were doing before. Police Chief Reynoso continues,staff is there everyday to clean,and we can make it a point to help people pick up their animal or even to adopt an animal. But it is not showing to be the end result that we hoped for. Staff is committed to helping the community.
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Vice Mayor Perez asks Fire Chief Martin Del Campo,if he had anything else to add.
Fire Chief Martin Del Campo responds,the fire department is committed to resolving the overtime issues.The admin staff has come up for what we think that we need in the overtime budget, but we haven't received that in the budget.What was talked about earlier, the training, and mandated time off, is the challenge to address the overtime concern.Can tell the council that we need 6 additional positions,but wants that data to come from an outside analysis.
Vice Mayor Perez asks new Community Services Director, William Via if he had • anything to add. Community Services Director, William Via responds still getting used to the budget and budget process here. Has had conversations with staff,and • the street sweeper is one of the big things that we need.I was amazed that a city of this size only has one sweeper.The biosolids and beltpress request, and we don't want to go to the same place where we had a history of violations.I can assure you moving forward for this year and throughout the budget, I will have more presentations and will do some studies myself to bring to the Council to see if we need more staff or anything else for the department.
Vice Mayor Perez asks Parks and Recreation Manager, Tina Garza is she had anything to add. Parks and Recreation Manager,Tina Garza responds thankful that recreation will have cars to drive around,and have cars.If that is considered it would be appreciated. Support with staffing. We are low in staff, one of the recreation coordinators resigned and it is barely being filled on July 2,so we need to support.
Appreciates the Councils support and the direction that parks and recreation is going has received positive feedback from the community.There was a request for Vista Park Hill and Dunne Park amenity upgrades.
City Manager Miller asks Council about Rainy Day fund from$1 million to$3 million, this would need to be in the motion.Vice Mayor Perez repsonds will go in the middle at$2 million.
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City Manager Miller continues, Community Center was brought up as $100k not being enough,$50k would likely be enough and Tina would appreciate.
Vice Mayor Perez asks if we should do one item at a time? City Manager Miller would like to recap all items as they should be put into the motion for approving a budget.Councilmember Burns adds for simplicity,he's comfortable with going yes/no for each item.City Attorney Lerner responds,yes because there is will be a record of • what the council wants to approve the budget.
Councilmember Burns confirms that council would need all three present votes to approve the budget and continues,he would like to hear more about rainy day fund. $2 million is a good compromise.
City Attorney Lerner mentions there doesn't need to be a motion as they go down the list,just confirmation to move with those items. She saw heads nod yes for the$2 million,once you go through your list, someone will make a motion to approve the budget with these inclusions noted by council.
Consensus for$2 million.
City Manager Miller asks do you want to increase the budget for the community center, or if we are reaching the $100k we can bring it back to council for an City Council Monday,June 27,2022 Page 13 of 15
adjustment. If it is not what we need,we can bring it back.Vice Mayor Perez would -- like to see what the bids are first, then decide. Councilmember Burns agrees, as does Councilmember Morales.Amount is to stay at$100k and come back if needed to be adjusted.
Consensus for$100k and bring back if adjustment is needed.
City Manager Miller continues, on the Management Analyst Position, it would be about$200k to approve a Management Analyst and then additional for equipment.
Councilmember Burns comments that$200k seems high,what are the costs for the current Management Analysts currently at the City?City Manager Miller responds,if you want to go to$150k, it is going to take a month or two to hire them so there would be some savings there also. Councilmember Burns asks Councilmember Morales, what is your experience hiring this position? Councilmember Morales responds that seems high. If you are looking at equipment costs,then$200k is fine, but you would have to separate one-time and ongoing costs. City Manager Miller confirms$150k would be fine.Councilmember Burns continues,I am not looking for someone to come in and learn this,but wants someone who is a qualified expert in this area.Where I work there are MA 1,2,3,senior MA.Another option would be to roll in one of the three existing positions into this roll. He wants this person to focus on the Fire Department overtime project.City Manager Miller responds,we will make sure that we can hit the ground running or move people as appropriate.
Councilmember Burns asks, where will this be assigned? City Manager Miller responds,Finance initially.$150k will be budgeted for this position?Councilmember Morales adds,the salary schedule has this at step 5 of$4,654 biweekly. So about $120k per year plus benefits.
Consensus for$150k to finance to add this position.
City Manager Miller continues,we'll bring back the EDC at a future meeting. Bring the fund balance policy back to a future meeting. We understand the $50k per council member is a discretionary for each council member to do projects.Training • for staff at$50k.
Councilmember Burns comments he would like to bring back EDC to a meeting in August,the sooner the better.City Manager Miller confirms.Councilmember Morales comments she wants all three, HDA, EDC,and Chamber at August,and show how they can be more collaborative and not duplicating work and how they are support the City of Hollister and have some deliverables and measures. Councilmember Burns mentions we have HAD in the chambers.Is that feasible? Public Comment:
Omar Rosa, HDA Executive Director Comments, There are different processes between the three agencies.We are more event driven.We would love to have an opportunity to do a presentation to the Council.
Vice Mayor Perez agrees and comments that all three organizations are vital.
City Manager Miller continues,for training for management.Councilmember Morales states no, It is for all levels, not just management.There needs to be training at all levels from janitorial staff to management.How to get data,how to deal with conflict, how to communicate effectively,for everyone.City Manager Miller asks what dollar amount?Councilmember Morales responds$25-$50k. Councilmember Burns asks, City Council Monday,June 27,2022 Page 14 of 15
what has been spent in the past? City Manager Miller repsonds,it has depended and been at department level. I can put it in the city manager's budget to keep accountability of who has done the training. Councilmember Burns adds, the Council in the past has discussed doing a team building effort with executive staff with an outside facilitator and you could easily spend $20K doing just that. We should do more. If we don't spend it then it isn't going anywhere. City Manager Miller continues, I would ask for $75k if the council wants both staff and if not spent the money can go back into the General Fund. All three council members agree.
City Manager Miller asks Council to make a motion to approve the budget with this changes listed.
Councilmember Burns motions to approve the budget with the amendments discussed this evening as presented by the City Manager. Seconded by Councilmember Morales, with an additional ask. Councilmember Morales requests for a 5 year revenue projection based on what' s happening right now with challenges with predictable factors we will be seeing in the next year to two years and also a report on the analysis that the County is doing on the two ballot measures that may impact the City of Hollister and would like it at the next meeting. County will be doing this presentation in June or July.
City Attorney Lerner asks Councilmember Burns if he would like to amend his motion. Councilmember Burns adds he would love to amend his motion to cover that.
Councilmember Morales seconded the motion.
Morales - yes
Burns - yes
Perez - yes
3-0-0-2.
Vice Mayor Perez asks for a motion to adjourn. Councilmember Burns motions to adjourn at 7:29 p.m.. Councilmember Morales seconded. All in favor.
ADJOURNMENT
Respectfully submitted,
Nova Romero, MMC
Deputy City Clerk
a
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