CITY OF PLEASANTON
CITY COUNCIL SPECIAL MEETING MINUTES
May 31, 2022
This meeting was conducted in accordance with Governor Newsom' s Executive Order N- 29- 20 and AB 361 COVID- 19 pandemic protocols.
CLOSED SESSION
Mayor Brown called the closed session meeting of the City Council to order from the City Council Conference Room at the hour of 5:01 p.m.
ROLL CALL
Present: Councilmembers Arkin, Balch, Narum, Testa, Mayor Brown
Absent: None
PUBLIC COMMENT — None.
ADJOURN TO CLOSED SESSION FOR THE FOLLOWING:
1. CONFERENCE WITH LABOR NEGOTIATOR pursuant to Govt. Code, § 54957. 6:
Agency representative: Brian Dolan, Gerry Beaudin, Debra Gill, and Art Hartinger Employee Organization: International Association of Firefighters Local 1974
CLOSED SESSION REPORT
City Attorney Dan Sodergren advised there was no reportable action.
ADJOURNMENT — The closed session meeting adjourned at 5:50 p.m.
SPECIAL MEETING
CALL TO ORDER
Mayor Brown called the hybrid special meeting of the City Council to order from the Council Chamber located at 200 Old Bernal and via Zoom at 6:03 p.m.
ROLL CALL
Present: Councilmembers Arkin, Balch, Narum, Testa, Mayor Brown
Absent: None
PUBLIC COMMENT
Mayor Brown opened the public hearing
Sharon Piekarski reported the $ 3 million to a new skate park only represents 50% of the funds needed.
She advised the $ 3 million could be used for West Las Positas at 90% funded, fully fund the Library Fire Control panel, or fully fund the Century House. She encouraged the City Council to concentrate available CIP funds on fixing things the City already owns, preferably on West Las Positas Boulevard.
Todd Nelson expressed support for the West Las Positas project and encouraged the City Council to fix things before starting new projects. He encouraged the City Council to save the Rainy Day Fund for real emergencies.
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Tadashi Yamaoda expressed support for the funding of the new skateboard park. He explained these types of recreation projects do not typically receive state funding. He noted it has been a long time coming to get a full skateboard park in the City.
Michael Petersen reported he runs the Farmers Market on West Angela Street and expressed support for any park that gets updated.
Sam Isola expressed support for a new skate park. He advised the skate park has been on the agenda and noted there will never be a perfect time to build a skate park. He encouraged the City Council to name it the David Lambert Skate Park.
Andrew Lambert noted skate parks are typically overlooked and advised it was supposed to be built in 2014. He echoedMr. Yamaoda's commentsthat thesetypes of projectsdo not typicallyreceivestate funding. He stated he speaks on behalf of the over 30 youth that expressed support of the skate park and would like the skate park before the picnic area and the shade structure.
Dustin advised he was on the original board in the early 1990s. He noted residents were told if the park stayed nice the City would build a better skatepark. He expressed his support for funding the skatepark.
Mayor Brown closed the public hearing.
BUDGET WORKSHOP
1. Review of FY 2022/ 23 Mid-Term Operating and Capital Improvement Project draft budget Interim Finance Director Mahin Shah presented the Fiscal Year 2022/ 23 Mid- Term Budget Update. She noted the main goal is to maintain fiscal sustainability and manage the City's reserves at a level that matches City policy while funding essential City services.
Interim Finance Director Shah presented an overview of the City Budget and reported there was an increase in the General Fund of $ 3. 7 million, a reduction of $ 1. 3 million in Enterprise Funds, an increase of $ 2. 9 million in Internal Service Funds, and an increase of $ 1 million in Special Revenue Funds. She provided an overview of Revenues by categories and advised the largest source of revenue for the City is taxes which includes Property Taxes, Sales Tax, Transit Occupancy Tax (TOT), and Vehicle License Fee, of which most belong to the General Fund. She advised the second largest category is Utilities including Water and Sewer which make up 23% of revenues and are managed by Enterprise Funds.
Interim Finance Director Shah reported staff is proposing an increase in both revenues as well as expenditures. She advised that based on an analysis of different revenue categories there is an additional $ 5. 4 million in revenues, an additional $ 3. 7 million in expenditures, and a transfer of $ 1. 7 million based on increased revenues and expenditures. She advised the General Fund is made up of different kinds of Property Taxes, Sales & Use Taxes, Other Taxes, Development Service Fees, Recreation Fees, and Other Revenue and noted they will all be increasing. She reported the largest increase is in Sales & Use Taxes by $ 1. 9 million followed by Property Taxes at $ 1. 6 million which pays for 59% of General Fund revenues.
Interim Finance Director Shah provided a brief overview of Operating Expenditures. She reported an increase in Personnel Expenditures of $ 1. 2 million and noted it makes up 72% of General Fund Expenditures. She advised that the biggest increase in Materials & Supplies of $ 3. 7 million. She explained the personnel cost increase is due to wage increases, pension increases, temporary salaries, and the new Livermore- Pleasanton Fire Department JPA Approved Fire Battalion Chief position for which the City is 50% responsible for funding. She reported non- personnel cost increases of $ 2. 47 City Council Minutes Page 2 of 11 May 31, 2022
million including Materials, Supplies & Services, Repairs & Maintenance, Transportation & Training, and Capital Outlay. She provided a brief overview of major changes in General Fund Expenditures.
Interim Finance Director Shah provided a brief overview of General Fund Transfers and reported there is an increase in Transfer Out of $ 1.7 million to the City' s Capital Improvement Project ( CIP) Reserve Fund. She advised there is no change to the Transfers In. She reported there are no mid- term General Fund Reserve changes and projected $ 33. 8 million in the General Fund and $ 10 million in the Rainy Day Fund by the end of the fiscal year. She advised that will leave $ 41 million in General Fund Reserves. She explained that City policy requires 25% of operating expenses in reserves.
Interim Finance Director Shah reported Enterprise Funds are based on user fees collected from people using specific services such as the Water Fund, Sewer Fund, Cemetery Fund, Golf Fund, Storm Drain Fund, and Transit Fund.
Interim Finance Director Shah reported the Water Fund and Sewer Funds are changing. She advised the Water Fund will be experiencing a decrease in revenues of approximately $ 3. 1 million due to the drought. She explained to mitigate the decrease, the Transfer Out to CIP will be decreased by $ 1. 1 million. She advised there are no projects that were directly impacted by this action in the current fiscal year or the fiscal year being proposed. She reported water purchases decreased by $ 2. 5 million because the City is buying less water.
Interim Finance Director Shah reported the Sewer Fund is the second largest Enterprise Fund and advised revenues are projected to decrease by about $ 885, 000. She advised it will be mitigated by decreasing the Transfer Out to CIP by $ 320, 000 and decreasing the payment made to Dublin San Ramon Services District.
Interim Finance Director Shah provided a brief overview of Internal Service Funds which are used to allocate certain internal costs to departments.
Interim Finance Director Shah reported at the last City Council meeting there was a discussion about increased funds for Medians & Trails and Zone 7 access roads. She reported there is a total maintenance budget of $ 1.4 billion and staff is recommending a more comprehensive study before returning to the City Council.
Director of Operations and Water Utilities Kathleen Yurchak reported that at the last City Council meeting there was a discussion of the trails that are Zone 7 access roads. She advised funds have been budgeted to remove some of the failing asphalt this fiscal year and next fiscal year. She noted that $ 55, 000 is allocated annually for maintenance along those roads. She recommends going back and reviewing the Trails Master Plan to direct staff where the priorities are on the trails.
Mayor Brown inquired if the Bicycle and Pedestrian Trails Committee would be used to make recommendations. Director Yurchak advised she has talked to Traffic Engineering about utilizing that group along with the Parks and Recreation Commission to help guide the process and provide input into recommendations to City Council.
Interim Finance Director Shah provided a brief overview of the Capital Improvement Program. She reported new projects being added and existing projects that are being expanded. She reported the annual General Fund contribution is proposed to increase by $ 3. 5 million. She advised City Development Fees are decreasing by $ 1. 7 million due to a credit adjustment.
Interim Finance Director Shah reported the main change is in the miscellaneous category with minor changes in the Park and Water categories. She advised a total of $ 11.8 million is being proposed to be added. She reported new projects include an OSC Fire Alarm and Notification System for$ 800, 000 and an OSC Generator Replacement for $ 575, 000. She advised additional funding is being proposed for City Council Minutes Page 3 of 11 May 31, 2022
the LemoineBypassPipeline, theAnnualPlaygroundRenovations, andAnnualCourtResurfacing. She provided a brief overview of the City Council Priority Projects. She advised the projects were assessed for affordability and the capacity to complete the projects. She reports staff recommends $ 350, 000 for the Bernal Community Farms which will be brought to City Council soon. She advised the skatepark is being proposed with a reduced scope of $ 3 million for the first year and then future funding will cover the rest. Staff recommends $ 250, 000 for the Cricket Pitch and Field and $ 2. 5 million for West Las PositasBoulevardrepairs. She notedthe LibraryRoof, Lighting, and Fire ControlPanelis fully funded and advised that $ 1.7 million is recommended to be added to the Century House facility.
Councilmember Testa referenced a public comment that West Las Positas Boulevard has been deemed unsafe and inquired if that was accurate. She recalled the City Traffic Engineer and Director of Engineeringhaddeemedit to besafe. InterimCity ManagerDolannotedroadsare notdeemedsafeor unsafe, but some are safer than others. He acknowledged that West Las Positas Boulevard is experiencing some issues the City knows need to be fixed.
Director of Engineering Steve Kirkpatrick reported the City is not intending to close West Las Positas Boulevard at this time. He explained the number one complaint is that it is bumpy which is due to the sub- base shrinking. He reported spot repairs will continue until full reconstruction can begin.
Councilmember Testa asked City Traffic Engineer Mike Tassano for comment. He reported he is usually asked if a traffic collision occurred due to the condition of West Las Positas Boulevard. He explained that while several collisions have occurred, the ones that he has seen are not a result of the uneven pavement surface. He echoed Director Kirkpatrick' s comments that there is currently not a safety issue and noted the road would be closed if there was a safety concern. He explained there will be a point where fixing the entire roadway is necessary.
Councilmember Testa inquired about the $ 5 million allocated for fixing the Library roof. Director Kirkpatrick explained it is a standard re- roofing but has found windows also need to be replaced. He advised a cost estimator came up with the amount and the project is currently out to bid. He explained there are some placeholders in the bid for repairs that cannot be determined until the roof is dismantled. Construction is done in phases to keep the Library open, adding to the cost of the project.
Councilmember Testa advised she was confused by the terms of Repair & Maintenance, Repair & Replace, and Internal Services and inquired if they are referring to the same account and fund. Interim Finance Director Shah advised the Internal Services Fund ( ISF) is a broader category and terms Repair Maintenance and Repair & Replace are used interchangeably. They are specific kinds of funds that are used to either replace or repair equipment or repair or create renovations within a facility. She clarified there are 19 funds the City has for certain purposes depending on the expense incurred.
Councilmember Testa inquired why projects like the Library roof would not be identified as a need.
Interim Finance Director Shah explained that typically Repair & Replacement Funds are built over time for a certain purpose and do not normally have capacity for larger projects. She explained the funds are typically set aside for emergency repairs. She further explained there is an accounting requirement that if a project goes over a certain threshold it has to be reported in a certain way and maintained separately from an ISF. Councilmember Testa advised the Operating Budget identifies $ 8 million in Repairs & Maintenance and inquired clarification on how that is different. Interim Finance Director Shah explained it is three distinct accounting practices and the level of spending separates the categories.
Councilmember Testa inquired why the policy for the maximum threshold for the Rainy Day Fund has been exceeded. Interim Finance Director Shah explained the policy referenced is for the General Fund Reserves. She explained the Rainy Day Fund was set up in 2022 to plan for potential reduced revenues experienced due to the pandemic. She advised there has been the past practice of transferring $ 5 million annually from the General Fund to CIP. She reported in 2020, the City Council decided to put half of it aside in what was termed the Rainy Day Fund with the end goal of eventually City Council Minutes Page 4 of 11 May 31, 2022
returning those funds to the CIP. She confirmed the Rainy Day Fund currently sits at 30% but will be reduced once funds move out of the General Fund and back to CIP. She noted at no point will it fall below the target fund balance.
Councilmember Testa inquired why there is a Reserve and a Rainy Day Fund. Interim Finance Director Shah explained a reserve is good fiscal practice and allows the City time to plan and react in worst- case scenarios. She noted reserve policies will be found in almost any financial institution that manages its funds appropriately. She explained the Rainy Day Fund was the City Council and staffs way of mitigating the unknown of the pandemic.
Councilmember Narum inquired if there is a cost- saving by combining the Library roof repairs and the fire control panel work. Director Kirkpatrick advised there would be no cost savings as they are different types of work. He acknowledged the fire panel is old and needs to be replaced. He reported he has discussed the issue with the Fire Marshal and the only reason to replace the fire panel is its age.
Councilmember Narum inquired about funding sources for the West Las Positas Boulevard repair.
Director Kirkpatrick reported a geotechnical study was recently conducted and the recommendation from the report is that there will be isolated areas for repair. Interim City Manager Dolan explained the funding source is pulled from several areas, although City Traffic Engineer Tassano believes grant funding can be found. It will fall back to the General Fund if other sources cannot be identified.
Councilmember Narum inquired if the information from the study will be positive for reducing funding.
Director Kirkpatrick advised he believes it is but noted no one could have predicted the increase in oil which has resulted in bids coming in significantly higher.
Councilmember Narum inquired if Director Kirkpatrick was comfortable with the funding for the widening of Bernal Avenue at First Street. Director Kirkpatrick explained staff has received estimates that show the funding is adequate but with the cost of asphalt going up and Pacific Gas & Electric ( PG& E) needing to remove their vaults for the City to widen the street, it has been delayed and may cost more with time. He noted there is some contingency.
Councilmember Narum inquired about the balance of the Repair & Replacement Fund at the beginning of the fiscal year and the projected ending balance. Interim Finance Director Shah reported the fund started with $ 19 million and $ 19. 5 million projected. She advised staff is anticipating another $ 3 million in revenues to that fund balance. She reported the expenses are approximately $ 8. 2 million with a projected ending fund balance of$ 14.6 million.
Councilmember Narum inquired what the average balance of that fund has been over the last five years. Interim Finance Director Shah reported the average fund balance for the last five years was $ 23 million. She confirmed the City is drawing down on the fund in this proposed budget. She further advised there is an increase in need due to deferment of expenses. She clarified the fund balance is decreasing by $ 9 million from where it has typically been over the last five years.
Councilmember Arkin inquired about Planned Unit Development ( PUD) fees and if it has ever been determined if it covers the full cost of staff time. She noted that it seems like there is a big variance in certain projects in terms of staff time required. Interim City Manager Dolan reported the City conducted a fee study and updated the fees recently. Community Development Director Ellen Clark confirmed there is a wide range of staff time from simple PUDs to more complicated ones. She advised the fee attempts to strike a balance.
Councilmember Arkin inquired if the 30. 7% Operating Budget threshold was referencing the General Fund Reserve. Interim Finance Director Shah clarified the threshold is a combination of both the Rainy Day Fund and the General Fund Reserve. She explained that the Rainy Day Fund is a part of the City Council Minutes Page 5 of 11 May 31, 2022
General Fund but was created as a separate bucket to hold funds, however, the General Fund Reserve is $ 41 million which is 30. 7% of the Operating Budget.
Councilmember Arkin noted if the 30. 7% was taken down by 1% it would free up roughly $ 1. 2 million.
She inquired if the City Council could consider decreasing it by 1% to obtain the funding needed for CIP. Interim Finance Director Shah advised the City Council could consider it but staff does not recommend it because the City has not experienced the actual year yet.
Councilmember Arkin noted if the City Council chooses to fund $ 3 million for the skatepark, it is $ 3 million short. She inquired if that amount would cover Phase 1 of the project or if it would be held up until the total amount is allocated. Interim City Manager Dolan advised the City Council' s previous direction was to look into ways to reduce the cost. He noted it can be done for $ 6 million with the goal to get half of the amount in this year and pursue the other half next year or sometime soon thereafter.
Councilmember Arkin inquired if any of the work can commence with the $ 3 million. Interim City Manager Dolan explained with the initial phase of funding the actual design contract would commence.
He reiterated his understanding that $ 6 million will be needed to build the playground. Director Kirkpatrick explained $ 6 million is to build all the features and building in phases would be very difficult.
Councilmember Arkin noted her understanding that a lot could be done with West Las Positas Boulevard with the funding as the recommendation. Interim City Manager Dolan explained there is a good amount of funding dedicated to this project but there is time to wait for other sources as construction will not begin for two years or until Stoneridge Drive construction is completed.
Councilmember Arkin inquired about the budget for the City's per-and polyfluoroalkyl substances PFAS) infrastructure. Interim City Manager Dolan advised staff is not proposing any changes to anything City Council has approved on that item.
Director of Operations and Water Utilities Yurchak reported the PFAS project is still estimated at $ 46 million which combines the well rehabilitation along with the treatment facility. She advised the cost is being folded into the rate study that will come forward to the City Council in July. She reported the City has applied for a low-interest loan from the State with a backup being a bond and supplemented with a grant. She advised staff is working with Townsend Public Affairs for some federal funding. She explained staff is focused on more concrete funding options.
Councilmember Arkin inquired about the reasoning for the addition of a Deputy City Attorney by 1 Full- Time Employee ( FTE) and the reduction of the Assistant City Attorney by 0.25 FTE. City Attorney Sodergren reported one of the Assistant City Attorneys retired in December and one of the part-time attorneys moved to full time. He noted this for succession planning it would be best to have a full-time entry- level deputy position rather than a quarter senior position.
Councilmember Balch inquired when staff was looking to begin construction on West Las Positas Boulevard. Director Kirkpatrick believes the project estimated 18 months. Interim City Manager Dolan explained it would be challenging to find the funding if it needs to be done immediately.
Councilmember Balch inquired if $4 million is needed to commence the project. Interim City Manager Dolan confirmed that is correct. Councilmember Balch noted that this project would take almost all of the annual $ 5 million allocation to CIP. He advised that given the timeline, the allocation for West Las Positas Boulevard should be increased. Interim City Manager Dolan explained that to commence construction in 18 months, more funding would need to be allocated.
Councilmember Balch recalled the City Council last discussed Century House in June 2021 and inquired where the amount came from. Interim City Manager Dolan reported the amount was based on an architect assessment. Councilmember Balch recalled the City Council did not change the interior but City Council Minutes Page 6 of 11 May 31, 2022
primarily the parking lot and the entry. Interim City Manager Dolan reported it was not changed but there is a lot of work to be done on the inside.
Councilmember Balch requested a brief overview of the CaIPERS outlook based upon the prior budget where there was a 21% return. Interim Finance Director Shah explained that CaIPERS sets the rates for the City and then they set a discount rate. She advised in prior years the City received a 7% discount rate which was reduced this year to 6. 8% based on the 21% rate of return the City experienced in fiscal year 2021. The indication is that the next year is not going to be as strong and believes there will be a significant drop in the rate of return in CaIPERS. She explained that as long as CaIPERS is making more than the discount rate by 2% the City' s rates will not go down. She noted if it is within 2% then there is a potential to reduce the discount rate to 6. 6% which will impact the City' s financial situation.
Councilmember Balch inquired if staff looked at other uses for General Fund Surplus such as bolstering the lower income housing fund or other areas outside of just CIP for that use. Interim Finance Director Shah explained when the City experiences a surplus it goes to CIP and then to the Repairs & Replacement Fund. She advised anything else is based on policy and if any other programs are eligible for additional funding.
Councilmember Balch noted the City just passed drought rates and thought it would help with the solvency of the fund without having to pull back the CIP. Interim Finance Director Shah advised this is an additional $ 3. 1 million revenue reduction and the strategy will have to be based on rates and how it is proposed and brought forward. Director Yurchak explained revenue for the drought rates that were implemented on May 1 will not be seen until it is billed in July so the revenue collected will go towards the Fiscal Year 2022/ 23 revenues.
Councilmember Balch referenced the staff report stating a $ 3 million revenue shortfall associated with water conservation and now $ 1.1 million of CIP is being pulled back from the Enterprise Fund. Director Yurchak explained staff is trying to be conservative in the City' s CIP projects as it goes through the rate study and noted waiting until the Water System Management Plan is completed will help inform future CIP projects. Councilmember Balch inquired what the water revenue decrease would be if the drought rates were not in place. Director Yurchak believes it would be at least $ 6 million.
Councilmember Balch inquired about the I- 680/ Sunol Boulevard interchange and where it falls in this process. Traffic Engineer Tassano reported the project is still in the design phase and there is some delay with Caltrans. He advised there is 12 to 18 months of detailed design to work through and it would be premature look at construction funding.
Mayor Brown reported the Alameda County Transportation Commission ( ACTC) and Tri- Valley Transportation Commission ( TVTC) are two of the funding sources for that project. Traffic Engineer Tassano confirmed the City also goes after ACTC and TVTC funding. He noted that ACTC funding is difficult to obtain because the City is not a disadvantaged community.
Councilmember Balch inquired about the status of the Lions Wayside Park bandstand. Interim City Manager Dolan reported in will be in a revised Master Plan and it will be a substantially different project with its own expense.
Mayor Brown inquired about the miscellaneous CIP General entry for $ 7. 9 million and the miscellaneous General CIPR. Interim Finance Director Shah explained that is the CIP General Fund contribution and is part of the transfer from the General Fund year- over- year. She noted that $ 3. 6 million was added to the balance for a total of $ 10 million. She clarified the miscellaneous General CIPR is a smaller reserve.
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Mayor Brown inquired if the $ 2.3 million for Dublin Freeway reimbursement could be used for parks.
Interim Finance Director Shah stated it is restricted but will need to confirm.
Mayor Brown inquired if the $ 1. 5 million in Park Development Impact Fees could be used for park work.
Interim Finance Director Shah explained the Park Development Impact Fees are restricted to projects approved by nexus study and Century House and the skatepark are not identified as approved projects.
Mayor Brown inquired about the $ 3.5 million for new Community Park Site Acquisition. Interim Finance Director Shah explained a Nexus Study was conducted in 2004 specifically for buying a new park which was approved by the City Council. She noted it was supposed to be the last park purchase in Pleasanton. Shereportedstaffwillbe researchingto seewhatthe optionsarefor usingthatfunding.
Mayor Brown inquired what the Century House project needs to make the property available for weddings and events. Director Kirkpatrick reported the estimate is $ 4 million and would include foundation work, fixing the back room addition, new electrical, new plumbing, Americans with Disabilities Act (ADA) compliant bathrooms, and updated staircases to be compliant with existing code.
Mayor Brown referenced the General Fund Reserve maximum of 30% and noted it sounds like an excessive number. Interim Finance Director Shah noted the potential of recession and there is uncertainty around another surge of COVID.
Mayor Brown expressed surprise that the Repair & Replacement Fund was doubled. Interim Finance Director Shah explained that was a direct result of COVID- 19 impacts for a couple of years due to deferred maintenance, deferred purchases, staff shortages, and resource shortages. She reported in an average year $ 5. 6 million is spent.
Mayor Brown noted that the City funded $ 1 million worth of gym repairs for the Pleasanton Unified School District ( PUSD). Director Yurchak reported the three middle school gym expenses are shared equally between the City and PUSD.
Councilmember Arkin agrees with much of the staff recommendations. She recommended lowering the General Fund Reserves from 30. 7% to 29. 7% or somewhere close to $ 2 million so it can be put towards other projects.
Councilmember Testa noted she wants to do all of the projects but recognizes the need for some of the more practical and essential projects although she does not like dividing up the money. She would like to see some projects completed and recommended moving the Century Housing funding to the skatepark. She also encouraged completing the cricket pitch. She thanked staff for setting aside funds to respond to the concerns regarding the Zone 7 trails.
Mayor Brown inquired if Councilmember Testa wants to keep the $ 3. 1 million for the Library roof.
Councilmember Testa believes it needs to get done but feels the funds for the skatepark could be realized if they are allocated from the Century House. Mayor Brown inquired if Councilmember Testa would support taking $ 2 million from the General Fund Reserve to fund the skatepark and leave Century House alone. Councilmember Testa advised she would support that.
Councilmember Narum reminded the dais that the Rainy Day Fund was going to be pulled out over three years to help with CIP. She expressed concern that the projected ending General Fund Reserve balance is 24. 33% of expenses. She understands 30. 7% is very enticing but $ 2. 5 million per year for the next three years was to move into CIP to make up for the pandemic.
Councilmember Narum advised the City is known for maintaining fiscal sustainability and is uncomfortable with adding new amenities such as the skatepark. She expressed support for maintaining existing amenities before introducing new ones. She believes the City needs to put more City Council Minutes Page 8 of 11 May 31, 2022
funding into the Century House; she clarified she does not want it torn down but wants to create a use for it. She suggested taking $ 2 million from the skatepark and allocating it to the Century House to fully fund it. She expressed support for continuing with the Library roof and accepts Director Kirkpatrick' s recommendation to defer the fire panel work. She encouraged the City to be cautious given an impending recession and inflation.
Mayor Brown inquired if the $ 3. 5 million allocated for a new park gives Councilmember Narum confidence that there is more money in the General Fund. Councilmember Narum advised it does not if the City must buy a park with those funds. She advised if there was a way to say creating a skateboard park is creating a new park then she is open to the conversation. She noted Mayor Brown raised a good question for future discussion.
Councilmember Balch agrees about fully funding projects. He expressed concern about further drawing down the Rainy Day Fund. He clarified the budget does start to draw down reserves to restore funding to CIP as designed by previous City Councils. He believes the City Council should be mindful that the City' s economic future is still hazy. He expressed support for investigating if the Repair & Replace Funds need additional funding from the General Fund but does not support reducing the reserves further. He expressed support for fully funding the Bernal Community Farm but would oppose the skatepark. He advised a solution for the cricket pitch was identified at a prior meeting and supports that plan. He expressed support for the Library roof and lighting and deferring the fire control panel.
Councilmember Balch expressed support for doing West Las Positas Boulevard in 18 months so as not to put 100% of future CIP allocation into that project but would support allocating more funds to it now.
He expressed support for Century House and feels if it is not addressed it will continue to degrade. He noted with the skatepark, along with the purchase price, comes ongoing maintenance.
Mayor Brown expressed support for Bernal Community Farm. She inquired if the Pleasanton Cricket Pitch was fully funded. Interim City Manager Dolan confirmed it is fully funded. She expressed support for funding the Library roof and lighting. She stated West Las Positas Boulevard may cost $ 10 million but the cost still uncertain and noted she is not as concerned about that project given Measure B, Measure BB, Measure F, and the gas tax.
Mayor Brown advised she would like to see funding go towards the skatepark and $ 1.7 million going towards the Century House to ensure it is preserved as an amenity for the community.
Councilmember Narum requested clarification about the $ 1.7 million allocated for Century House and the comments indicating that the work may need to be redone. Interim City Manager Dolan clarified there may be need to spend some of the $ 1.7 million but not necessarily all of it.
Mayor Brown proposed taking $ 2 million from the General Fund and allocating it to the skatepark without the extra parking, bathrooms, or picnic tables for a $ 5. 5 million project. She agreed there is some uncertainty but most of the General Fund comes from Property Tax that she heard is consistent and continues to rise.
Councilmember Narum agreed with Mayor Brown except that in 2011 Property Tax went down which was part of the Great Recession. She noted no one knows if the nation is heading back into a recession.
Councilmember Balch advised he will not support pulling $ 2 million out of the General Fund when the City is looking at a recession.
Councilmember Arkin inquired what $ 1. 7 million accomplish for the Century House. Interim City Manager Dolan explained the intent was to start a savings account to complete the project which was City Council Minutes Page 9 of 11 May 31, 2022
estimated at $ 3. 8 million five years ago and noted there is not a current estimate. He explained some work could be done but that work may have to be redone given the state of disrepair.
Councilmember Arkin advised she understands the need to fund one project versus splitting it all out.
She agreed some funding should be put towards Century House but expressed support for taking $ 2 million from the General Fund for the skatepark. She advised that would take it down to 29. 2% Interim Finance Director Shah explained that 30. 7% includes the Rainy Day Fund which has already been programmed to be brought back to the CIP Fund as part of the 10- year plan that includes $ 2. 5 million coming back annually to the General Fund. She explained any amount being taken away earlier will impact future projects.
Mayor Brown noted Councilmember Balch is not in support. Councilmember Narum confirmed she is not in support and believes the City is borrowing from the future year. She expressed concern that if the Rainy Day Fund goes away the City is under 25%.
Mayor Brown expressed she believes it is within a very safe margin.
Councilmember Arkin stated that 25% is the target and the minimum is 20%.
Mayor Brown stated the City is just under 30% and believes it gives the City a great cushion, lots of protection, and allows the dais to identify funds that need to be looked at further. She noted the skatepark has been promised since 2014 and is the only project in the Parks and Recreation Master Plan that has never come forward. She expressed support for protecting the Century House from any further degradation. She supports West Las Positas Boulevard as a repair.
Councilmember Testa inquired if the Library lighting for $ 400, 000 could be taken out of Repair & Replace. Interim City Manager Dolan explained the money must come from the General Fund.
Councilmember Balch advised he does not agree that taking from reserves is a conservative measure in the light of the economy. He noted the City Council has already had to improve increases in the parking corridor recently just to finish it. He noted the Costco project is upcoming, along with the PFAS Treatment Plant, the Bernal Avenue interchange with First Street, and Sunol Boulevard with 1-680. He expressed concern about taking funds from reserve for a new amenity over taking care of the Century House which has been here for 130 years.
Councilmember Arkin explained she was thinking to move $ 2 million from the reserve towards the skatepark. She thought the dais could consider fully funding the Century House first and keeping the skatepark at $3 million and finish it when the $2.7 million in funding is available.
Councilmember Testa advises she would support getting Century House completed.
Councilmember Narum advised she would fully support Century House but would not support taking $ 2 million from reserves.
Councilmember Arkin moved to approve the priority projects list as described in table 2C with the modification that $ 2 million be allocated to the Century House from the General Fund Reserve.
Councilmember Testa seconded the motion.
Director Kirkpatrick clarified the cost estimate for Century House is several years old.
Councilmember Arkin modified her motion to reflect $ 1 million be taken from the skatepark funding and be applied to the $ 2 million allocated for the Century House. Councilmember Testa accepted the modification.
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MOTION: It was m/s by Arkin/ Testa to approve the priority projects list as described in table 2C with the modification that $ 1 million be taken from the skatepark funding and applied to the $ 2 million allocated for the Century House, for a total of $ 3 million to be allocated to the Century House improvements from the total General Fund Reserve. Motion passed by the following vote:
Ayes: Councilmembers Arkin, Testa, Mayor Brown
Noes: Councilmembers Narum, Balch
Absent: None
ADJOURNMENT
Mayor Brown adjourned the special meeting at 8: 50 p. m.
Respectfully submitted,
o elyn K on•
4Clerk
City Council Minutes Page 11 of 11 May 31, 2022