STAFF REPORT
Meeting Date:
March 10, 2026
CONSENT
11 SUBJECT: FORMATION OF A FISCAL SUSTAINABILITY AND STRUCTURAL
EFFICIENCY AD HOC COMMITTEE (KEMPF)
RECOMMENDATION: It is recommended that the City Council:
1. Appoint Councilmember Alex Rounaghi and Councilmember Sue Kempf to serve on the Fiscal Sustainability and Structural Efficiency Ad Hoc Committee to evaluate potential cost-reduction strategies and operational efficiencies for consideration during the development of the Fiscal Year 2026–27 budget process; and
2. Find that the recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b) because it involves an organizational and administrative activity of government that will not result in a direct or indirect physical change in the environment.
SUMMARY OF THE MATTER
At its February 24, 2026, City Council meeting, and in accordance with Resolution No. 24.011, Councilmember Kempf requested that the City Council direct staff to return with an agenda item establishing a Fiscal Sustainability and Structural Efficiency Ad Hoc Committee. The purpose of the committee would be to evaluate potential cost-reduction strategies and operational efficiencies for City Council consideration during the development of the Fiscal Year 2026-27 budget.
Mayor Orgill, Councilmember Jones, and Councilmember Whalen expressed support for bringing this item forward, providing the three votes required under Resolution No. 24.011 to place it on a future agenda.
Ad Hoc Committees are temporary and established for a specific purpose. If formed, the committee would consist of Councilmember Alex Rounaghi and Councilmember Sue Kempf, supported by City staff. The committee would sunset upon adoption of the Fiscal Year 2026-27 budget, whichever occurs first. .
FINANCIAL ANALYSIS
There is no fiscal impact as a result of the recommended action. Any staff support for the Ad Hoc Committee would be provided using existing staff resources and within currently approved departmental budgets.
ALIGNMENT WITH CITY COUNCIL GOALS AND PRIORITIES
This action supports the City Council’s goal of maintaining fiscal responsibility and operational efficiency by providing an additional opportunity to evaluate strategies that may enhance the City’s long-term fiscal sustainability and improve the efficiency of municipal operations.
ENVIRONMENTAL ANALYSIS
The recommended action is not subject to the California Environmental Quality Act (CEQA) pursuant to CEQA Guidelines Section 15378(b) because it involves organizational and administrative activities of government that will not result in a direct or indirect physical change in the environment.
FORMATION OF A FISCAL SUSTAINABILITY AND STRUCTURAL EFFICIENCY AD HOC
COMMITTEE (KEMPF)
March 10, 2026
ATTACHMENTS
1. Resolution 24.011 Establishing Policy Relating to Councilmember Placement of Agenda Items for City Council Meetings (Pgs. 3-4)
Submitted By:
. Approved: .David A Kiff
Gavin Curran, Assistant City
Manager
Dave Kiff, City Manager
Report Prepared By: Coordinated With:
Gavin Curran, Assistant City Manager