This video documents a City Council meeting where the City of Lodi, California faces significant budget challenges. The council discusses a projected deficit of approximately $5 million annually, with reserves being depleted by fiscal year 2030. Public comments highlight the need for honest conversations about economic realities, including potential tax increases, utility rate adjustments, asset monetization, and public-private partnerships. The meeting demonstrates how local governments must balance essential services with fiscal sustainability, requiring difficult political decisions and long-term strategic planning to address revenue shortfalls while maintaining community services.
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City Council Regular Meeting of June 17, 2026
Added:We're going to start guys.
>> This is a regular meeting from June 17, 2026 convening at 6:32 p.m. Madler, can you please do roll call?
>> Council member Bregman >> here.
>> Council member Nakanishi, >> here.
>> Council member Craig Hensley here. Mayor Promosi >> here.
>> Mayor Yopez >> here.
>> Thank you.
>> Uh, city attorney, could you please introduce the close session items?
>> Yes. You have three matters tonight. The first two matters um are conference with legal counsel existing litigation pursuant to government code section 54956.9D1.
Those are the matter of Scott R. Carney versus City of Loi, Sanwaqin County Superior Court case number 3828 and Scott R. Carney versus City of Loi Sanwaqin Superior Court case number 44713.
The third matter is conference with legal council anticipated litigation significant exposure pursuant to California government code section 54956.9D21 case.
>> Thank you so much. Is there any public comments on close session items?
>> Mayor, I don't have any comment cards.
See none. Uh, the council is adjourning to close session at 6:33 All right. So, the council is returning from close session at 7:14 p.m.
>> Sir Attorney, can you please report on close session items?
>> There's nothing to report this evening.
>> All right. Thank you so much. So, we'll move to the vocation.
Uh, we invite Pastor Patrick to the podium.
Well, Patrice, sorry, Patrice, let us bow our heads.
Gracious heavenly father, we are gathered in this place to conduct business for the city of Loai. I ask, oh God, for the gift of wisdom and clarity as they deliberate on the issues facing this city.
Give the council members the ability to listen and to work together in unity, integrity, compassion, and dedication. We pray all these things in your name. Amen.
>> Now we will do the flag salute.
To the flag of the United States of America and to the for it stands one nation indivisible and justice for all.
>> This is the regular meeting for June 17, 2026 convening at 7:15 p.m. City clerk, could you please do roll call? Council member Bregman >> here.
>> Council member Nanishi >> here.
>> Council member Craig Hensley >> here.
>> Mayor Promosi >> here.
>> Mayor Yopez >> here.
>> Thank you.
>> Okay. So, uh, mayor, tonight we'll start with our presentations and we have four and the first one is for parks and recreation month, the power of parks and recreation. And I'd like to invite Director Jeremy and the parks, recreation, cultural services department.
>> Good evening. Thank you, Mr. Mayor, and thank you members of the council um for recognizing that July is parks and recck month. And so tonight we have our parks and rec commissioner Mike Karuba as well as a few of our staff from the department.
The proclamation for parks and recreation month. Whereas parks and recreation is an integral part of communities throughout this country including Lodai California. And whereas parks and recreation promotes health and wellness improving the physical and mental health of people who live near parks. And whereas parks and recreation promotes time spent in nature, which positively impacts mental health by increasing cognitive performance and well-being and alleviating illnesses such as depression, attention deficit disorders, and Alzheimer's. And whereas parks and recreation encourages physical activities by providing space for popular sports, hiking trails, swimming pools, and many other activities designed to promote active lifest lifestyles. And whereas parks and Recreation is a leading provider of healthy meals, nutrition services, and education. And whereas parks and recreation programming and education activities such as out of school time programming, youth sports, and environmental education are critical to childhood development. And whereas parks and recreation increases a community's economic prosperity through increased property values, expansion of the local tax base, increased tourism, the attraction and retention of businesses, and crime reduction. And whereas parks and recreation is fundamental to the environmental well-being of our community. And whereas parks and recreation is essential and adaptable infrastructure that makes our communities resilient in the face of natural disasters and climate change.
And whereas our parks and natural recreation areas ensure the ecological beauty of our community and provide a place for children and adults to connect with nature and recreate outdoors.
Whereas the US House of Representatives has designated July as parks and recreation month. And whereas Loi California recognizes the benefits derived from parks and recreation resources. Now therefore be it resolved that Ramonz, mayor of the city of Loi, does hereby designate the month of July 2026 as park and recreation month in the city of Lodi, California.
>> Thank you.
>> Thank you so much. And you know we can Obviously, you have a lot of support you >> Thank you.
>> Thank you. Um, Commissioner Kuruba would like to say just a couple of words.
>> Well, just on behalf of the commission, um, many of whom could be here tonight, this council has been really supportive of Parker X in a way others haven't. Uh recently we uh mayor uh Eupz and uh uh council member Bregman were at Zupo Field for the uh junior giants and that beautiful facility is the direct result of your commitment to parking racks and I think you'll admit it was just an amazing amazing event see all these kids and it was very proud to have in that facility. So thank you on behalf of the parks commission for all your support.
Fix it.
Okay. Item B2 is the presentation of proclamation proclaiming June 6, 2026 as California adopt a and I'd like to invite up to the podium David Gold.
Thank you.
Whereas thousands of dogs, cats, and other companion animals enter shelters and rescue organizations throughout California each year in need of safe, loving, and permanent homes. And whereas pet adoption provides animals with a second chance while enriching the lives of individuals and families through companionship, emotional support, and improved well-being.
And whereas California Adopt a Pet Day is a statewide initiative dedicated to promoting animal adoption, raising awareness about shelter pet homelessness, and encouraging responsible pet ownership.
And whereas animal shelters, rescue organizations like ours, volunteers, veterinarians, and community advocates work tirelessly to care for vulnerable animals and connect them with loving families.
And whereas California Adopt a Pet Day helps reduce shelter overcrowding, supports animal welfare efforts, and inspires communities to consider adoption as the first option when seeking a pet.
And whereas through public awareness, community engagement, and adoption opportunities, California Adopt a Pet Day highlights the importance of compassion, responsibility, and lifelong commitment to animals in need.
Now therefore be it resolved that I Ramon Pez.
Okay. Uh do hereby declare June 6, 2026 as California adopted a in the city of Lorai and I invite everybody to adopt a pair and helping those organization by donating your time or funding obviously.
So sign on the 17th day of June 2026.
Thank you.
>> Thank you.
Thank you. And now I will invite you guys to say a few words.
>> First of all, I can't >> She's been talking about rescue for so long that she's lost her voice, but she and I talked about this a lot. Um, and you'll hear from Michelle Weekes a little bit later, too, about the importance of uh the animals in our community. know uh Jane's been in rescue for over 25 years serving the entire central valley, especially Loi. We live not far here from downtown. And it's one of those jobs that where you meet the worst in people and the best in people. And we celebrate the best in people. And those are the people who adopt, who foster dogs, who donate, who work tirelessly, the veterinarians, the shelter staff who are taken for granted and not loved the way they should be. And uh we appreciate council member Bregman hosting a town hall just a couple of weeks ago. It was a standing room only room. That's because there's so many people who care about animals and we appreciate you giving us the opportunity to speak. We look forward to the new animal shelter and respectfully ask that we continue to fund it, to support it, to be open uh enough to serve the community. And that's really uh one of the messages I want to leave you all with today. There's three things you can do if you care about animals.
Number one, spay and neuter your pets because that's where the overpopulation problem begins.
Number two is commit to your pet as if it's a member of the family. And we get calls daily from owner surreners, people who thought, h, you know, maybe this dog was too much for us. Uh, so commit to an animal and and go to reputable places like rescues uh and reputable breeders.
If you go to a breeder, not the backyard breeders, don't perpetuate that problem.
And finally, donate, adopt, and foster. And thank you again so much for this honor.
Um, for item B3, which is our next presentation, it's a proclamation proclaiming the month of June 2026 as Pride Month in Loi. And I would like to invite Jess Moreno from a new loi up to the podium.
Mayor, I'll also note we have a public comment on this item. So once you present, I'll call the public and as our board members make their way up here, just to pick up on the last proclamation, um we actually had a pet adoption during the pride event at Idol Beer. So um we help we through our event one dog did find um his forever home. So um we were proud to be uh to partner with LOI animal services for um for that that event as well.
Whereas the liberation movement for the LGBTQ plus community began with a riot on the night of June 28th, 1969 at the Stonewall Inn, sorry if I get emotional in New York City. There have been other movements such as the Matasheen Society in the past who fought against bigotry, but it was the Stonewall riot that kicked off the modern movement for the LGBTQ plus riot rights. A fight that continues today. Accounts vary about what exactly happened that night. But what's clear is that this was the night the LGBTQ plus community decided to fight back. And whereas Stonewall inspired LGBTQ plus people worldwide to organize and fight for their rights, what started as a local bar riot turned into a global movement. Before Stonewall, it was illegal to exist as an LGBTQ plus person in most of the world.
Since then, not only has the movement led to civil rights that were once thought impossible, but LGBTQ plus people have also made significant cultural and economic contributions to communities around the world, including in Loi, California. And whereas the city of Lodi is proud of being an inclusive and welcoming home to all residents where we believe that everyone is entitled to dignity and respect. And whereas since 2021, a new LOI has recognized and celebrated Pride through its annual pride festival.
And whereas the 2026 festival was celebrated on June 6th, drawing approximately 1,200 attendees along with over 40 vendors and performers to downtown Loi. Now therefore, be it resolved that Ramon Yep, mayor of the city of Loi, does hereby proclaim June as Pride Month in honor of the LGBTQ plus community and the allies in the city of Loi. Signed on the 17th day of June, 2026.
I would uh just like to thank the mayor and the council for this uh recognition.
Um you know there's a lot of people to thank. I just I I just for me I just go back to uh the 1980s um as a gay kid in Loi. Um that was a tough time to grow up and um I never thought something like this would happen in Loi. And so it's meaningful. I just want you to know that um this recognition is meaningful to the community. It's recogn this recognition is important. Um you know we talk about LOI being u livable lovable LOI. I've grown up all my life hearing that phrase. Um and proclamations recognition. the fact that this is this was our fifth pride celebration in the city of Loi um really helps us live up to that ideal that we have that we've adopted for this city and it's been been the motto since I can remember the livable lovable ODI. So I thank you.
Thank you for this recognition. Um it it's very heartfelt and it means a lot to to all of us on on the board and the community at large. So thank you.
And then Mr. Anderson, did you want to come up for your public comment?
Hi, Christopher Anderson. I am uh president of LOI and the one of the founding members of a new LOI. So, I'm really proud of all of you for making this happen. Um I've been on the front lines fighting for social justice for LGBTQI plus folks and for us to come this far in LOI is just really phenomenal. So, I applaud all of you. I applaud our audience. I applaud our community for being making these steps forward uh to recognize some of the most marginalized people and to rise them up and love and honor them for who they are. Appreciate you all. Thank you.
>> Mayor, our last presentation of of the night um is a presentation of recognition to our outgoing interim city manager, Aaron Bush. And I'd like to invite >> you to the podium.
>> No, we have other stuff too. So there's more. There is more.
>> Okay.
So I just want to say a quick words we have had a few city managers in the city of LA. It's not a surprise, right? But Erin in his three months that you've been here, right? Three months, four months. Wow. Times fast as you have done phenomenal. Like if we I tried to recruit you many times to take the full-time job, I failed. But as recent as last week but but no but really like of all the people that have worked with Erin you having experience really shows like because you when I have asked you we don't agree on many things but we talk about it we talk about the issue we get to the resolution and that's where you see the experience that I'm grateful that you were here at this time and I hope you can continue helping us in some facility here in the city because you're not going to be the interim city manager From now on, you're going to be the city manager emeritus of the city of Lor, which I don't think we have ever done that, but you're the first one, and you'll be the first one. So, thank you.
Would like to say some words?
>> Well, thank you, Mr. Mayor,, Vice Mayor, members of the council. It truly has been an honor to uh be invited to come and and serve and help with you and your your goals and objectives. Um, I I knew right away that this was a special opportunity because this is a unique and special place. And so thank you for inviting me in to to be a part of that for just a short period of time. But we did, you know, tackle a lot of different things and I'm very grateful for that.
You have an amazing dedicated staff that is very passionate about the challenges and the opportunities ahead of you. Um, and so I I think you're in good hands and I I know that the incoming city manager is very excited to be here and and take a hold of the reigns and do some great things for this wonderful community that uh obviously, you know, won a very important award recently and I can see why. So, thank you for the opportunity and it's been a pleasure and uh thank you.
>> I would like to invite the council.
I'm just gonna give a quick shout out to our public works department because they made that sign.
Not yet. Oh, like you told me two days ago until 7 a.m. on Monday.
>> Yes. And I said you're the hook for the weekend still. So anyways, um so we will now go to the consent calendar. Madam city clerk, can you please introduce the consent calendar?
>> Yes, mayor. Tonight we have I on the consent calendar we have items C1 to C18. There are no changes or updates to the consent calendar. So we submit it as is for your review and approval.
>> Will any member of the council would like to pull an item?
>> Uh C1, C9, and C13 for comment.
>> Okay, let me see. I think I have another do you got all of those, city clerk?
>> Yes. Okay. Any other item?
I see none. Then >> has the public been offered a chance to pull items yet?
>> Uh, not yet.
>> Not yet.
>> Not yet.
>> Uh, so we will go with council and then we'll ask uh the public to if they would like to pull an item. So >> So just just those three items from council member Craig Hensson.
>> Okay, then let's start with the first one.
>> Uh on C1, I just want to make a note. Uh it's the minutes from the meeting and I had asked to receive information regarding the difference between revenue received in the past from the business license tax versus revenue now received from business licenses. So that's an outstanding item for all council to receive. Um and then I had also asked if I could receive information relative and I mean you know the um financial reports regarding the libraries investment fund.
Um board of trustes fund and any auditing that the library has done of of their investments. So that would be the only things I'm still looking for. Thank you.
Thank you. Okay. Um C9 uh I am to C9.
Oh, uh, Chief Garcia provided me some information on this, but I just want to underscore and understand and I think this will be when we pull together our new procurement uh, purchasing policy, but we have purchased vehicles um, from four police patrol vehicles outside of even Sanwaqin County going to Folsam Lake Ford and Winter Chevrolet. Uh, based on an agreement we have relative with the state that we can operate under. I think I really want to better understand um if we don't have fleet services available in this city. Um and I am 100% going to continuously talk about the importance of supporting buying local because those sales tax come back to us help increase our revenues and give businesses give business to our local businesses. So I know we'll be coming in July I believe with a purchasing policy.
>> Yeah, the finance committee actually just sent over.
>> Okay, good. So just putting that on the agenda for um that purpose. And then lastly, um road condition assessment item C13. I know I appreciated very much Mr. Nathan's list of what we're going to be looking at for uh uh road paving projects. I want to be consistent with the fact and this was mentioned by Mr. Lindseay when he was on as city manager.
We need a complete road condition assessment report and you know not just driven by neighbors complaining about potholes which I respect that but you know when we look at it in comparison to other alleyway street paving projects where is the greatest need? The alleyways had a great uh assessment completed of it. So that was extremely helpful. Um, I'd like to know that we uh have that same level of analysis done for for streets citywide so that we really understand that we're getting the worst ones first. So >> um yeah, so we did council did allocate some funds last year for um for the roadway analysis. We put an RFP. We selected a consultant. They've actually done the almost all the field work already. Okay. And then um per their process, they switch inspectors and they do 10% of double-checking of the other people's works just as a QAQC. And so um that'll be wrapping up real shortly and then we will be presenting that that report to council.
>> Thank you, Mr. Nathan. Sometimes we just don't know what's going on behind the scenes. So that's that's my reason for asking the question. Thank you for that.
That's it.
>> Nathan, >> you painted it, didn't you? Right. Yeah, that was a striping project to touch up.
>> Beautiful. That was Thank you. Thank you for continuing.
Thank you.
>> Thanks so much. And that was all the items.
Okay. So, now I'm going to ask the public if they would like to pull an item from consent.
>> Yes. Can you Thank you.
>> Hello, my name is Jason Pentiger. I'm with West Coast Arborus and I'd like to pull item C15 from the consent calendar.
>> Okay. Let's uh hear let's discuss now.
>> Okay. Um thank you, Mayor Council. Uh I'd like to uh take this opportunity um to explain uh my name is Jason Pineer.
I'm the operations manager with West Coast Arborist. Um, I I've been the manager. I I'm currently the vice president, but I was a manager here in 2005 when we originally uh were awarded this contract.
I'm here today to respectfully request the the delay in awarding this contract.
Uh, there are several concerns that warrant further evaluation before moving forward. F first and foremost, the proposed contractor lacks the experience with tree management software required for this work.
Elite Maintenance has never completed a comprehensive municipal GIS tree inventory of this size or scope.
Uh this was a minimum requirement for this project.
Um additionally, they're closest office and crews are located over an hour away.
Um I believe in the city of series West Coast Arbor currently maintains the trees and inventory for the city of series since 2012.
This raises legitimate concerns about emergency response times, especially during high traffic or inclement weather. Over the past five years, our team has successfully completed um over 90 after hours emergency calls for the city loadout, including responses during major weather events, and these seem to be happening on a more frequent basis in Northern California.
WC has the ability to mobilize over a 100 crews from our local offices in Stockton, Sacramento, the Sanwin Valley, and the Bay Area if needed. Um timely response is critical to maintaining public safety and protecting city assets. I have um um currently I have 15 employees uh that live uh that reside in the city of Loi.
I have three full-time foremen with their fully equipped trucks that live and own homes in the city of Loi. And I also have a a branch manager, a nursery manager that owns a home here in Loa.
Loa urban forest is valued at over $42 million and that that's a conservative estimate.
This is a significant public asset that requires proven experience and capabilities.
The proposed contractor has not previously managed a project of this size or complexity and would be undertaking this as their first effort at this scale and I don't believe it's in the the community's best interest to serve as a trial case.
West Coast Arbor is proudly partnered with the city of Loi for more than 20 years now. During that time, we've worked closely with staff, city staff, local nonprofits, and the community supporting tree load at Arbor Day events, the annual hospice Christmas tree lighting since 2006.
Um, and the ongoing training programs with city staff and their partners. I I respectfully propose extending the current contract to allow staff the time needed to fully evaluate the lowest biders qualifications and and actual capabilities.
Um I I believe they were rushed. Under California law, contracts must be awarded to the most responsive and responsible bidder, not simply the lowest price.
there was a 10% difference in cost.
Experience is proven.
Uh performance matters especially when managing an asset of of this of this importance. So I thank you for your time and consideration.
>> Thank you so much for your comment.
So I have a question for the city manager and city attorney. um is can we delay on this item for the next meeting?
>> You certainly could continue the matter if you chose to.
>> Okay. So we that's an option. Okay.
Thank you.
>> So we invite uh I think council woman Craig is first and then >> um so I noted that this initial contract term Mr. Nathan is for two two years and then two optional. We've done that in the past so that it gives us an opportunity um to evaluate the work of the firm that's working with us. I would assume is there any other specific provision in the contract where if we did not feel the performance was up to what the expectations were or what was presented in the proposal that we would have an option uh out on that agreement.
that one. I don't know what the specifics are. I do know that there are there are clauses in there that allow that to us and then we'd have to um at that point rebate it if if that was determined, but um there are clauses in there. I just don't have those specific ones memorized because that's not something we deal with too often.
>> Um I I am I have said this before and I have to be consistent. I do not believe in evergreen contracts. I do not, you know, support uh a contract with for 20ome years unless there's a very valid reason for it. Um to my earlier point about I'd like to support local businesses. Um we did put this proposal out. There was a response to it. I do hear uh what we're being told relative to meeting um respons responsiveness and responsibility. Um I do understand we tend to look low bids on capital projects. So um I understand that as well. Um I I don't know that they were rushed in the review of this. Um but I do have to support staff if they felt that this was uh the best option at the time for the bid and that it was responsive. It's kind of like time will tell in that and if we have a way out of it, then I'd be more comfortable just moving forward. It's it's not a threeyear, it's only a two-year contract, which we do a lot of threeear contracts.
Um, any any other thoughts of council? I mean, I'm open one way or the other.
>> I just would be curious as the reason for switching the contract. Was it simply the 10%?
>> No. So, um, since I've been here about 13 and a half years, um, we've put this contract out to bid four times. Um, I managed the first probably two and a half of them. Uh, the first three times we put it out to bid, West Coast Arus was the low bidder. They were awarded it. Um, they've had it that time. So that was that was the 2013 uh was the first one I put out. Uh that uh over the those three contracts uh the city has um those those contracts were ultimately valued at about $5 million. Um per council's direction in our purchasing policy once we hit five years um we've been pointed out to bid. So this one that we're currently in is a um 2.8 $2.85 million contract since two uh 2021. So this is the end of the fifth year which is why we put it back out to bid. Um this being the fourth time and they just they were not the low bidder.
Um as part of our standard process when we open the bids the the low bidder is actually the term is apparent low bidder. And so that's based on no no research at first, they're the low bidder. And then after that, you go back and you verify that they meet all the conditions of the the requirement to to our satisfaction and that um if they have subs that none of them would have their license revoked or they don't have their license revoked, that type of thing. We have a whole checklist of things we do for that type of stuff. And so um so yeah, that probably has to answer your question, but I don't know if that if that asked or brought up anymore >> sense of where the employees come from.
Are they local employ because this new finance I don't know when that's going to come before us but I believe there is something related to 10% differential I don't know >> in terms of local >> we're changing we're in the process the finance committee made some recommendations for preference for local biders and I believe the differential roughly 10% if I I'm correct correct >> it's a 5% so yes >> it's us it's usually related to sales tax And business licensing is typically quite modest.
5% is pretty typical. Five or >> do we have comparative cities that this low bidder is done before?
>> So as part of our staff's verification, um they called a number of cities. They found a number of like uh council awards. U the the agencies that they that they do work for is Fresno Unified School District, Merced County School District, City of Roseville, Sierra Resource Conservation District, City of Shatter, City of Clovis, Kern County, Sanger Unified School District, Sanwaukein Irrigation District, and Stannis Loss Transit Authority. So those are those are the 11 that our staff verified and our requirements didn't require that many, but that's what our staff verified.
>> Does that sound correct to West Coast as well?
Sir, sir, >> I'm so sorry, but residents online can't hear you. If you can come up to the podium, my apologies. No worries.
>> Several of the agencies that uh were mentioned uh by Mr. Nathan um we are currently the uh maintenance provider for those agencies. Uh they do do landscape in those m in in those agencies. They have never completed an a a a a city municipal tree maintenance contract in its entirety, not even for a year. So they I I believe that Loi is going to be their first and I don't think that um that that the cost savings is there. We we actually lowered our price from five years ago by 10%.
And what um Elite did was they lowered they went 20% below our price from 2021.
Um and and the numbers don't make sense.
So thank you for your comment. Uh Councilwoman Grace, >> just I I just in order to be all of this. Mr. Nathan, have you had any performance concerns with West Coast Harbor?
>> No, the opposite. West Coast has been great. Like I said, I I managed their contract for the first I don't know, eight years I was here probably and they've been fantastic. Couldn't couldn't say a bad thing about the service we've had from them. Uh when we had the storms in 2021, uh and also the the New Year's of 22 23.
They're fantastic. If we did continue this, what would you do other than, you know, maybe addressing the comments that have been made tonight? I mean, what would you do?
>> So, from staff's perspective perspective, we weren't rushed. Um, we we did verify everything that that we felt we needed to verify on meeting the requirements of our bid. our staff um observed that elites uh databases that they have for I think it was at least two um two agencies. They showed us they showed us that they had it and that it meets the requirements that we need it for. And so um there's I mean from a from staff's perspective um we we we validated that we feel they meet the requirements of the bid specs. I think for sake of you know we have a lot of items today in the agenda and I will be I would like to move this item to the next meeting so we can get more information about it if you guys are in agreement with that and then we have next city council meeting in two weeks or >> is it's July one but I would I would to the council members point I would ask if there's something specific that you would like us to look into tonight so that we make sure that we're not wasting that twoe time period >> and missing what you're looking for.
>> That would be helpful.
>> I mean, if they're if they already have tree contracts with these other cities, not landscape contracts, that would definitely be something to know. Is Loi going to be the first?
>> We can we can absolutely verify.
>> I have a question.
>> Oh, I'm sorry.
>> Uh Deb, go ahead.
>> So, they they say that they provided a tree management software. I've requested this from staff and I have not received any information as to what cities they have provided uh municipal tree inventory uh GIS software or asset management. I I've not received anything. Um I would love to uh see what cities they have uh provided the service for.
>> Mayor, I would just ask one thing. Um you mentioned the fact that you've done uh the tree lighting. You've done some other things for nonprofit organizations working with tree load. I I think that does need to be factored in. We've done that with WM in the past. Um so it it would be important to know a little bit more about the value of of those services on top >> in in most cities that have a you know 16,000 tree. you have 16 or 18,000 trees in your inventory with valued at over 42 million. It normally goes to the best qualified, not just the lowest bidder.
Um, Elite Maintenance also bid against us most recently in the city of Roseville. one of their um one of their uh recommend or one of their references, we've been the tree maintenance oper uh contractor in the city of Roseville for 20 years and are currently set to renew and that we were ranked number one and elite was ranked number six and they they did not consider price they just looked at qualifications.
>> Do you guys have any more questions? No, I >> Dr. Mish uh if I were to make a choice today, my favorite would be this company because they've been in Loai for a long time. We have not had complaints about trees. So looking at it, my personal bias to get >> it was company.
>> So I think this way I think it will be prudent to continue this item. So then council members can have conversation with the city manager, the city attorney and all of those things. Yeah, Mr. City Manager.
>> Yes. Thank you. So I I think in you know that two weeks happens fast >> because to get back to you it's really one week. Um and so I think what the takeaway for for us tonight is is that we will verify some of the claims that were brought up tonight um and confirm those. I appreciate the comments about um the the additional um provisions that West Coast has been providing to the city of Loi. Um but if I'm not mistaken, that is not included in the in the score sheet, if you will, for the contract. And so I'm certainly not discounting that. But, you know, from our perspective, we're looking at it per the the terms of the contract.
And so in that regard, I think uh we can certainly focus on verifying what was shared tonight and then come back to the council with confirmation that you know um we did or we did not you know confirm that.
>> Thank you so much.
>> I'll make a motion for consent calendar minus C 15.
>> I will second them.
Thank you.
So I just want to make sure that there is no motion on C-15. It is just to continue. The direction is to continue.
And then Mayor Promhoi motioned and Mayor Yupz seconded. And I will start the votes now.
All right. Any passes? So, now we're going to move to non-aggenda items. Uh, do we have any public comments?
>> Yes, mayor. I am >> I do have one comment card.
>> Madam city clerk, do we not have to swear in the 18 No, unfortunately there wasn't enough opportunity to give them notification that they're going to be on the agenda tonight.
>> So, um they are not here as >> No, Nancy is here.
>> Oh, you are here. Okay.
>> Yeah. So, >> yeah, let's do that.
>> I will say Miss Milton is a reappoint so she's already on the library board.
Before you go, would you like to say a few words?
Would you like to say a few words?
Um, thank you so much for um, choosing me to be on the library trustees. Um, I really love the library. Uh, when I first started reading, I was nine and um, the library changed my life. It really did. I just all I did was read and then I started reading poetry. So I believe libraries are extremely important to our community. So thank you.
>> Thank you so much for as you know I have shared with you in the interview that the library is one of the things that I value the most of the city. So I know that it's going to be in good hands with you. So thank you for stepping up and taking care of something that I love so much. Thank you.
All right. So, now public comments.
>> Yes, mayor. I just wanted to uh give a quick update. I didn't realize I didn't see the cards that were here, but I do have multiple comment cards for C-15.
So, for those that submitted comment cards for C-15, um I will send your comment card and your contact information to public works so that when the contract come backs to comes back to council, you'll be notified.
>> Thanks so much, Okay. For uh public comments on non-aggenda items, uh the first comment card I have is from Michelle Weekes.
Uh good evening, mayor and city council members. I wanted to thank Cam Cameron Bregman for um arranging the span neuter meeting that we had a few weeks ago. I'm here tonight as a resident and someone who fosters dogs and follows shelter outcomes closely. Over time, I have personally stepped in to help dogs when there wasn't enough options available.
I've taken dogs off the streets. I've worked to find homes. I've partnered with rescues that were full and even helped sponsor dogs and contribute financially so rescues could say yes to more animals. I have probably con already this month given $1,000 to help dogs in our community. I'm speaking tonight because I believe animal services deserves attention during the budget discussions. Animal services often viewed as expensive, but prevention and support can reduce costs over time. Accessible spay and neuter programs, vaccination clinics, owner support, resources, education, adequate staffing can all help reduce intake and keep more animals out of crisis. Right now, too much of the burden falls on volunteers, fosters, rescues, and residents to fill the gaps. Many of us continue to step up because we care, but community goodwill alone cannot be the plan. I'm asking the city council to consider whether additional resources can be directed toward animal services and prevention f focused programs and to ask that and to ask what investments today can improve outcomes for both animals and residents in the future. Um again prevention is great. Parvo and distemper is big in our community and to save one dog it could go anywhere from a couple thousand to10,000 dollars to help a dog with parvo or distemper that can be helped with vaccinations. Um I always say too it's a little bit easier to help place a dog that's healthy. If strays are left on the streets, they end up coming and getting hit by cars or far worse. Um they're getting hurt in the encampments and that is also costing people whether it be the city or rescues tens of thousands of dollars to help dogs that have been hit by cars or far worse. Um thank you for your consideration and time.
>> Thank you for your comment. Next comment.
>> The next comment card I have is from Alex Ferris.
Hello, my name is Alex Olaf Ferris. I'll talk more about the data centers later because I didn't know it was on the agenda item, but it's going to be on later. Um and I hope most of you do consider uh staying afterwards for the data centers. This issue has brought up to the public not knowing what it is.
When you start researching it, there's a lot of negative nefarious stuff going on. There are communities out there that are being um they put these data centers in their water, especially farmers don't have water. Their electrical bills go high.
The pollution, the noise from these data centers are huge and some of them are in residential areas and there are a lot of complaints and Aaron Brochovich has come out. She's a famous attorney that sued PG&E back in the 90s, 80s and 90s. She made a movie, Erin Brochovich. She she actually came to Stockton close to 10 years ago because of water in Stockton.
Well, it's not that it's not all that great. But long story short, she has gone into this fight because there is secret secrecy revolving about these data centers that all of you ought to know. And um you better stick around and speak up and speak out.
But um regarding the pets in the east side, there's a lot of pets out there.
Um try to spay or neuter a cat these days.
It's expensive for a lot of the residents in the east side. A lot I could tell you a lot of them don't do that because of the cost.
I mean, I have um we have three cats, a lot of stray cats out there, including roosters. I don't, you know, and I try to call animal control and um they're like, "Well, do you know the address?"
You're like, it's like trying to like play, you know, guessing with which house has that rooster and it's happening in the east side. Um, it's kind of irritating, but you know, it's like, um, like I said a while back, there are people that immigrate to this area. They don't speak good English.
They don't read a lot, and we should have information available to them saying there's no roosters allowed in the city. You could have one or two chickens. I don't know what the policy is. Um, and so forth, but there ought to be a grant for spay and neuter. I I think city of Loi used to have that back in the 2010s and then all of a sudden the money is not there and I think Supervisor Steve Ding is trying to do something about it um to bring back that issue because there's a lot of stray cats and not only that dogs. I I mean I'm walking around the neighborhood and there's like two or three stray dogs and I don't know if they're friendly or not.
And most people that I know that do walking around the east side have to carry a stick because you don't know if this dog is going to attack you. And there's been attacks in the city of Loi by stray dogs. So yeah, it's a big issue.
>> Thank you.
Thank you for your comment. Next item. I mean, next comment, sorry.
>> The next comment card I have is from Jim Miller.
Good evening. I was waiting for the green light to come on. There it is.
Good evening, honorable mayor, vice mayor, council members. Uh my name is Jim Miller and I'm the vice president of race communications. We're your new fiber optic uh telephone company that is coming to Loi. We'll be delivering fiber optics straight to the homes and offering some of the highest speeds in the state to your local residents and businesses. We're excited about this project. Um, tonight I just wanted to give you guys a quick update on where we are statuswise.
We have been working closely with Loi Electric and Jeff and his staff over the last year as well as public works and Sean and his staff. and we're excited that we're um far enough along in the permitting process that we're able to kick off construction uh starting next month. Um obviously with the Fourth of July coming up, we won't start during that week. We'll probably start a week or so after the 4th. But with that, I wanted to update the council members on our process of how we communicate with the residents. So, one is coming here tonight in a public forum and letting them know that construction is going to be kicking off and the company is Race Communications that's doing it and they can re reach out to us through our website at race.com for additional information on that or questions and concerns. But in the neighborhoods that we're uh going to be rolling out the construction process, which is starting on the east side of Loi, uh letters will be going out to them here shortly and explaining the process of what's going to be taking place, who the company is.
Uh all the race employees will have race um safety vests or clothes on with race IDs. Our contractors run trucks that say contractor authorized by race communications, so it's very clear who's working out there. And at the same time um because we are a licensed utility we operate in the public utilities ements as well as the public rightaways um we have to call and have other utilities identified before we go and do our construction. And so in that process there's uh whether paint for the power or the water or sewer uh and flags that are marked in people's yards. And we want to make sure that people understand that's not graffiti. That is because as a utility you have to identify your underground utilities. So that's explained in the letter reference back to our website to where they can watch videos and so forth on it. Um with that being the case, we try to direct everything into race because with once it comes into our company, we're we operate in what's called a ticket world.
We create trouble tickets and we're able to track it from start to finish. And so we want to make sure that we address everyone's concerns within the city. and we'll have a local project manager that will be assigned to your city working with city staff as well as the residents when any of those concerns come in as we get construction kicked off 72 hours three days before we will start door tagging. So we have actually uh built over 50 different cities throughout the state of California and in doing so we never say we know it all.
to continually learn and continually grow and adapt and change our communication methods to the unique cities that we operate in. And so we've got a series of door tags that go out because our goal is never to get a 100% communication to the public because we know that's an impossible goal. But we try to hit in the high 90s. We know that sometimes people see letters and they throw it away out of their mailbox. We know that door tags go on the door and maybe the kids come home first see it and it gets thrown away. the rest of the residents don't hear about what's taking place. So now we do a multiple series of these door tags with that same information that allows them to know who's going to be operating in their neighborhood. But the main reason I'm here tonight is as council members, you guys operate and live in your neighborhoods with these residents and constituents, and we want to make sure that when they come to you that you know how to direct them back to race communication and know what's going on within your neighborhood. So that's that's our main concern is the communication. Construction is construction. If you've ever built a house, the building phase is never the fun phase. It's moving into the brand new exciting house. That's the fun phase. It's the same with us. We do a great job at construction. But when we finally get to be an operator, that's when the city's going to love the services and the residents are going to love the services.
With this kickoff of the project, we're hoping for uh starting services on the east side either in late Q3 or early Q4, depending on how construction goes and weather if we have a lot of rain in the fall. But with that, I just wanted to thank you guys and thank your staff. You have an amazing staff. I'm sure you guys already know it. The interim city manager mentioned it as well. Uh we've loved working with your staff and look forward to the continued relationships that we have.
>> Mr. Mayor, >> yes.
Um, if we can just make sure that whatever information the packet you're putting together for residents that council gets a copy. I mean, I may get a copy. I live in the east side, so maybe I'll see it, you know, first as does the mayor. Um, but it would be great just to to have this is the information that we're providing.
>> Absolutely. I I will get that over to staff so that they can forward you electronic copy of it so you have everything. I think was gonna I was gonna ask the same thing. It's good.
>> It's good. Thank you for your comment.
>> Thank you. Yeah, appreciate it.
>> Any other questions?
>> Uh, no. So, make sure that you leave the information with the city so we can get the information.
>> I'll copy.
>> Thank you so much.
>> Thank you.
>> The last comment card I have for non-aggenda items is Gordon. And I am so sorry I'm going to mispronounce your last name.
>> Thank you.
>> Uh good evening. Uh I'm Gordon Schmeer uh vice president emmeritus from tree loi. Um I'm I'm sorry our west coast avers uh have mostly departed but um Tree Loi has been partnering with a number of city organizations. Uh uh the last uh event was Arbor Day at Legion Park and we had the mayor there with a proclamation and um a number of other nonprofits joined us uh for the event. And it never fails that West Coast Arborist answers our requests uh to join us for volunteer activities. And so uh I just wanted to thank them and let you know that uh they do valuable things that might be not be in the contract. Uh I think the other thing that we need to understand is tree loadi and west coast arborist are in the same business. Uh tree loi takes care of little trees.
West coast arborous when they're old but uh the city of Lodi is just in the news about having one of the great small communities in the west coast. Those things don't happen accidentally. You know that. And when you have quality professional people volunteering and participating in the community, I think that's to be cherished. Uh West Coast Arnt mentioned that they had worked for the city for 20 years. That has value and obviously um there's competition, but here we have a track record that is the envy of most communities. And it is organization that uh we're able to work with and uh certainly u I would hope that the city council uh supports uh the new contract for them. Any other questions for >> uh no thank you for your comment?
>> Okay. Thank you, >> Mayor. That's all the comment cards I have. And I don't see anyone from the public online. Um but you're welcome to call into the audience.
>> So I would like to invite the public if if anyone wants to uh say public comment and non-aggenda item. Seeing none, I will move to um non-aggendum items from council.
Uh Dr. Nakanishi, >> I'd like to commend two people. Our city manager. Thank you so much for the good job you've done three three for three months in the la in the last in this year we're going to have four city managers and we've been lucky because we got some excellent intimate city managers. Thank you. First I want to thank you for what you've done. And Jennifer Ryan, there's a notice that you're going to be going tomorrow. Is that right?
>> Not quite tomorrow, but Well, I can't make it to the reception. I want to acknowledge your work in homeless situation. You're the uh unsung hero. If it wasn't for you, we wouldn't be in the situation we are right now, controlled homelessness. I think we we've got the uh title the smallest smallest city or greatest smallest city. They look at homelessness too. I think if it wasn't for the homelessness control, we would not have got this. Jennifer, I commend you and you're unsung hero. People who don't know who you are, but those of us who've been here know great job you've done. We're going to miss you.
>> Thank you.
>> Thank you, Council Member Nanishi.
I will just note that I have immensely enjoyed my time here and the support of staff, city leadership, council has been immensely great, especially in what council member Nakanishi had mentioned any housing and homelessness issues. I think we are leading the force in a lot of those areas and so I just appreciate everybody's support here. Thank you.
>> Thank you.
>> Um I just make a note that uh that other duties is assigned that took you deeply into project management is why she's leaving us. So don't undervalue other duties as assigned because it can lead to a new career path for you. So congratulations on that and uh I wish you wish you well.
>> Thank you very much.
>> Um I just wanted to uh give a couple of updates on things. Uh it was a really busy couple of weeks. Um want to credit the United Way of Sanwaqin County for pulling together um Alliance of nonprofits. Uh all of those who have come to us looking for funding support.
Uh they got a good two hours of training on building their own capacity in fundraising, which is exactly what I wanted to see because I want them to leverage those dollars that we provide them with to get an even greater return on that investment. Um also I want to thank uh Chief uh for pulling together the youth academy and the graduation. 23 young people I think graduated from the program uh this year and uh I I hope to see it next year uh again uh we may have some cadetses coming out of that graduation effort. They were pretty gung-ho. So chief thanks to your and you and your officers for that program. Um, I also got to participate. Lisa Hill here is here in Laura Deorce G Gordon Day Proclamation, uh, representing the mayor and, uh, I think it was a terrific event and appreciate you pulling that effort together. Um, another piece of information, uh, at the last Sanwaqin Regional Rail Commission meeting, uh, we approved a Chrissy grant to go in for the planning and design of the new Loi station, uh, which will be out on Highway 12. So, we're making first efforts to get funding for that project.
Um, and also I want to note uh I met with the Lodi Independent Lodging Association. Did I get it right, Scott?
Yes. Okay. Um, I think it's really important and I have followed up with city manager on this. Uh, we do apparently need to look at an ordinance uh to update um what is existing in place relative to the um registration. I guess I would start with uh for those those uh BNBs, Airbnbs that are advertising on VRBO and Airbnb that they actually must get a business license and they must self-report. Um I think there's an estimate of somewhere between 40 maybe highend 50% of the um uh independent lodgers that are not reporting uh and it is self-reporting.
So we need to make sure that they are paying their fair uh in the tourism tax.
Um and I look forward to hopefully seeing that come to council in the next month or so.
>> All righty. Well, I had a meeting with Mr. Peter Ragsdale last week and for those of you that don't know, he runs the uh housing authority for Sanwaukein County. We currently have one project with him near Park. Uh sounds like that's still going through and uh the last couple years he's been gaining funding through the proper channels. It sounds like they're going to be breaking ground sometime mid next year. So again for senior housing that's a great opportunity. I know we have some of our inner city action folk here tonight.
Thank you for being here. No. Oh my gosh. Outreach ministries. I apologize.
I'll hear that later. Um on any case, it's import when we're talking about the homelessness problem because again our seniors are starting to build up at the center and so the question is how do we have a long-term solution for that and realistically when the shelter is built we're going to get one good shot to get a lot of these individuals from the center into senior housing and ensure that it the center is going to have loadi individuals and not individuals necessarily from the county so loi first in that matter um the second item is the employee association uh party, I would call it association picnic. Thank you. Um how many individuals were there, do you think, Olivia? 200. I'd say about 200. Um great event and again, you know, we have our fire and police officers and thank you for your service. You put your your lives on the line each and every day. Um I also believe that there's multiple ways to serve and so again for any individual in this city that served just like Jennifer Ryan, Jennifer, thank you for your service. Um, again, thank you to you all. Uh, I know a lot of times in city council we we're very focused on efficiency and again becoming better each and every day, which we should, but again, you guys get a lot of that brunt force to you. Um, so again, today I just want to say thank you. Thank you for what you do. Thank you for the times that you try and you do well and you're not actually rewarded for it. Um, it doesn't always go unnoticed and keep on doing the hard work and one day you will be noticed. Um, So that's it. Just wanted to say thank you. And actually I did see our interim city manager um Mr. Aaron there. And the reason why he's city manager is because we were all under a hot metal tent with which was probably about 100 degrees. And I see this guy bringing his own chairs in the shade underneath a tree about 30 degrees, you know, colder. So anyways, he deserves a seat. Um and thank you for all the employees that helped put it on this Saturday. Thank you.
>> Any other comments for council? I'm seeing none. I actually um would like if uh boy I have a question for councilman Breman if he would like to pull his item G3.
>> So no or yes.
>> I I would like to make a a statement on it.
>> I don't know if it's what you think it is but >> Well, I wanted if Okay. So we not pull it. So we'll continue for sake of efficiency. Okay. Right. So we'll continue with their regular calendar.
>> Okay. So uh moving on to our public hearings. We have three tonight on the agenda. The first public hearing is to consider a resolution adopting final engineers annual levy report for LOI consolidated landscape maintenance assessment district number 2003-1 fiscal year 2026 27 and ordering the levy and collection of assessments. and I'll turn it over to our interim public works director, Sean Nathan, for the presentation.
>> Thank you. Let's pull that up real quick. So, this is uh this comes every year. Um so, should look uh look familiar. It's also really short. So, once we get it up and running. All right, perfect.
So, um the city's landscape maintenance district overview, there's 16 zones that were added between 2003 and 2008. Uh three of the zones were removed in 2014 as part of a um citywide general benefit analysis they call it. Um and then generally they include landscaping, street park uh trees andor masonry walls. And the annual assessment on the properties in these areas varies from $18.35 per year to $55 per year.
And then um as part of the landscape uh assessment district, we're required to pro provide this uh engineers report each year. Uh here's a quick map showing where all those zones are. Most of I mean they were all developed within that time frame. So that's kind of the general reason for the location. Zones 7, 10, and 12 were removed from that 2014 uh general benefit analysis.
Uh here's a breakdown of the budget. Um, so you can see the majority of the cost comes from the actual landscape maintenance of those areas. And then we have other funds that are added to for street tree maintenance and masonry wall maintenance. And those those kind of build up until unfortunately when someone like runs into one of the walls in those areas and we have to replace them. And then also those street trees get trimmed on like a cycle maybe every five, six years. And so the same thing that builds up to pay for that. And then there's costs for a consultant to prepare the report. Um, one thing I would like to highlight on here is that uh, we're keeping the assessment the same. It's the same that it was the um, for a while now. And the reason is prior to the the benefit analysis in 2014, we had built up a a pretty good surplus of the cost that was um, for the for that maintenance in case there was some problem, you could cover that. After that assessment, that surplus was what we would call a little excessive. So, we've used that surplus to supplement this. So, we didn't have to raise any rates for the past uh probably 10 years um until that surplus got down to a a reasonable number, which um it's it's it's about there now. So, I would anticipate starting to increase the rates next year.
Here's a breakdown of how much each zone pays per year. Obviously, they're same last year and this year because we're keeping them the same.
And any questions?
>> Thanks so much. That was a good presentation. just has six slides. So, the SC have any clarifying questions for staff?
Seeing none, I will open the public hearing at 8:28 p.m.
Madame City Clerk, do we have any comments to this item?
>> I have no cards.
>> No. Okay. I would like to invite anyone for the public if they would like to speak on this item.
Seeing none, I will close the public hearing at 8:29.
Oh, yeah. I have a comment from um Dr. McNish.
>> Yeah.
>> Before we close it, >> this is a routine thing we do maintenance. No big deal. I mean, we have to do it.
>> Okay. So, now I will close the public hearing at 8:29 p.m.
Any last uh council comment? I will entertain a motion.
>> Move to approve.
>> Second.
All right. And it passes. So, next item.
The next item on our public hearing calendar is to consider adopting resolution setting pre-approved engineering news record adjustment index for wastewater rates for residential, commercial, and industrial customers. and I'll turn it over to public works management analyst Rebecca Arita to provide that presentation.
>> All right. Good evening, mayor and council members. Um like Sean said, I'm sure you guys are used to this annual presentation. Little look familiar. Um we're here tonight to conduct a public hearing to consider setting pre-approved wastewater rates.
And start off with a little background.
Uh, Proposition 218 process was conducted in 2024 where council adopted a 5-year schedule of rate adjustments.
2024 was the first year of adjustments with the subsequent annual adjustments based on an ENR indexing and capped at a maximum of 5%.
All right. And staff also utilizes a financial model to analyze any proposed rate adjustments we bring to you. And this model is updated frequently.
Um, tonight's recommendation is a 2.6% increase for fiscal year 2627.
The 2026 ENR annual index change was 2.6% and staff is recommending an increase set at that 2.6%.
And again, these were pre-approved increases from the January 17th, 2024 council action, but historically staff has brought these annual adjustment requests back to council for their consideration.
And this next slide just provides you with a summary of past rate increases in wastewater showing the Prop 218 max adjustment approved each year. the ENR index and the actual rate adjustment approved.
And just to make a note again, the 2024 adjustment wasn't ENR based. That was our restructuring as a part of the process um and not based on the ENR.
And with this slide, we're just showing the comparison of the current rates to the proposed rates based on the 2.6 recommended increase. Under the usage based rates, you will see the monthly usage charge of $323 per CCF increased by eight cents to $3.31.
The 3/4 inch meter monthly charge of $3045 would increase by 79 to 31.24.
And just showing what a typical bill calculated at 9 ccfs would be. Um, and that's an increase of $151.
And here's just the comparison of the local jurisdictions around us. Um, showing kind of where we stand as one of the lower end. Um, but to point out that all the cities are on flat rate except for Loi for wastewater usage charges.
I know that's a lot of information right here, but this is pulled from our financial model and shows the planned projects through 2030 with um an expense totaling around $41 million over that time period. And each year, I just like to point out that keeping up with the small incremental increases each year, um we've been able to cash fund a very large, very expensive projects um namely the electrical building out at White Slooh. It's around 16 total million.
And tonight's recommended action is to adopt a resolution studying pre-approved engineering news record adjustment index for usage based and flat wastewater rates for residential, commercial, and industrial customers. And the rate adjustment would take effect July 1st of 2026.
>> Okay. Thank you so much for that presentation. Um, does council have any clarifying questions for staff?
Council woman Craig >> just one um when we made this agreement originally it was up to 5%. Is that tied and is the engineering rate record tied to the CPI? Is is that kind of the equivalent?
>> So the the ENR that's the engineer news record and there that's the publication that does the cost index.
>> Okay.
>> So um our pre-approved was 5% or the ENR difference whichever is lower.
>> Okay. That that's what I want to clarify. Thank you. Any other questions?
Seeing none, I will open the public hearing at 8:34 p.m.
Do we have any public comments?
Okay. I would like to invite anyone in the public if they would like to make a comment.
See none. Oh. Oh, yeah. Oh, go ahead.
I think it's important to always consider consumers out there that or the residents out there are struggling right now. The high gas prices, food costs, everything is high.
Um so I mean for me I you know vote against it but I understand the whole common thing is oh we got to reconstruct this and this and that. um we shouldn't compare other cities uh to their cost.
We should be proud of having you know lower cost but I do understand we got to replace pipes and all that kind of stuff because I don't know how old these wastewater pipes are and if you look in the west in in the east side or various parts of the city you're dealing with very old pipes. So I don't I don't know if these the cost adjustment is going to construct for these projects or we're using this money to do something else.
That that I think that's my main concern. But I urge you to vote no because people are struggling. You could you could see it in the restaurants.
People are cutting back. Um and and um that's it.
Thanks so much for your comment. Do we have any more comments?
Say none, I will close the public hearing at 8:35.
Any last comments from council?
Um, Dr. McNia, infrastructure. I've always asked about infrastructure.
My understanding is the fee you're paying is paying also for revamp old infrastructure at a certain rate. Sean, can you give us what rate we're the pipes how how much we're replacing each year?
>> Uh, not I can't give you um like actual specifics on that, but we do that the fee then the model does have all that in it as far as all replacing. We don't we don't tend to replace a lot of pipes.
Um, we do TV them and based on their their quality, we line them. Um, that's what that's what we found to be a really cost-effective method. So, we don't have to tear up the whole road above it, pull it out. Um, the liners that go in there, depending on the size, they might be a quarter inch thick or half inch thick.
And and it's basically a holding pipe inside of it. And so, right now, we currently have phase 11 of our wastewater rehabilitation project that is lining a bunch of pipes. Um, not as we speak, but currently. And so, um, that's one of the infrastructure projects. We also have stuff out at our our treatment plant, pump station, stuff like that. So, we have it all over. But, um, a big cost is associated with keeping our old infrastructure current.
So, we minimize the chance of having like major problems. As a city council member, our job is to be sure that we're not spending overly, right? We also have expenses. You've got to raise rates. If you don't raise rates, then what happen?
Who pays for the uh expenses? And the Invariably it comes out to people can't afford it. And my question to you Sean is if people can't afford water and so where can they go to?
>> Uh I think there are programs for uh low income. Uh as far as utility assistance I don't know the specifics of those. I apologize. Um but I think I think we do have programs for that and electric utility does. So thank you. Yes. You've answered my question.
simple comments. Um, a tree that stays healthy prevents disease. Prevention is everything. So, for instance, we're not just approving rates just to approve them just because we want our departments to have millions in their funds. Uh, these funds go to again make uh much needed repairs and improvements to our system. And so one thing I asked Charlie Swimly while he was here three years ago is what can we do now? What dollar can we spend now so that rate payers in 10 and 20 years from now look back at Loi and say look at this we have the cheapest rates now but you have to pay your dues somewhere there's no free lunch and so it's either you pay now and you actually make interest on paying now or you pay later and you pay dearly. So, and we have a lot of rate increases each year for each department, but it's not meaningless, there's a reason for it.
So, but I do appreciate your comments, Alex. Every single time we do a rate increase, we should be looking at them and taking them serious. Joanne Mounts uh once said to somebody, it's a tune in a can. Okay? And it is. It's a tuna can to somebody. So, thank you.
Um anyways um any more comments from council? Uh would that a motion now?
>> Move to approve.
>> Second passes. Next item.
The next kind next item on our public hearings is uh is a public hearing pursuant to government code section 3502.3 to receive a report on the status of vacancies and recruitment and retention efforts. And I'll turn it over to our human resources manager James Pavey for the presentation.
>> Hi, good evening. A state law requires that staff present the status of its vacancies and recruitment and retention efforts and identify any necessary changes to policies, procedures, and uh recruitment activities uh if appropriate. Um and if vacancies within a single bargaining unit meet or exceed 20% of the authorized full-time positions in that bargaining unit, the city must provide additional information during such a public hearing. I'm very happy to report tonight that as of June 10th, the city's vacancy rate uh citywide is 7.6% and the vacancy rate for each bargaining group is well below the 20%.
Um and then if do we have the slide available?
Great. Thank you.
So the next slide will show the first chart which um will show our current vacancies as of June 10th, 2026. And it breaks it down by the different units, uh the vacant positions, uh the vacancy rates within uh each of those units, and of course the um the total citywide vacancy rate, the low 7.6%.
And then also in the next slide, please.
Thank you. This is a very detailed breakdown of the current vacancies that we have that show the positions showing such things as the pay ranges and where those uh vacant positions are receiving uh their funding from. Um and as our vacancy rate is so low, the city is not currently proposing any wide city changes to its policies, procedures, and recruitment activities. Um and throughout the year uh human resources staff focuses on making any changes when obstacles are identified. Um and staff has uh highlighted uh three activities which uh it has implemented throughout the year and what it continues to. The first is which uh with each recruitment HR staff works with the hiring managers to review and if needed to um update classification specifications to ensure that the competencies and minimum qualifications um are appropriately reflected. Uh secondly, city staff closely monitors recruitment best practices.
And uh third uh myself uh was the help of human resources staff we monitor vacancies to see if there's any trends and spikes in vacancies um or if we see any predictions that we can make regarding any uh future vacancies. Um so based on the aformentioned um staff recommends that council uh receive this report. Thank you.
>> Okay, we have a few comments from council and we'll start from that side to this side. So, first council man, then mayor proti.
>> Yes. I don't know if our police chief can speak to this, but I thought we didn't have as many vacancies as we're showing.
>> Sorry, I'm not trying to hide or anything. It's just hot in here and start feeling really anxious. So, um, so I think he said it was June 10th, right?
>> Yeah. Since then, we have hired a couple. So, that's that's um we have one. So, we're down to five. We have another officer starting on the 22nd, which will put us down to four. So, we're down four.
>> Okay.
>> As of the 22nd, we will be down four, I should say.
>> All right. Thank you.
I have a question just about how these vacancies are reflected as far as cost savings are concerned in the budget.
>> Well, we're not taking account any count um cost savings for these vacancies in the budget proposed tonight. However, if we did want to budget any cost savings, I would recommend minimizing the amount of fund balance that we are contributing to the co to the sar and benefit projections as a way to minimize that effect on our fund balance for theus going forward.
What's our average for the city for uh vacancies over the last say five years?
>> I don't have that information now, but I can get that information for you.
>> That would be good in the sense of Mikey's point on the budget.
>> Yeah, I love that this bill passed in the state because I found in my six years up here that you know sometimes there are funding shortfalls and sudden we hear about some staff savings and so there's more transparency as far as this is concerned but I would just be curious as to what the overall amount it is that this is impacting or not currently impacting the budget as far as these vacancies are concerned so we have a full financial picture you know as we move forward >> Mr. Mayor I just want to echo that because I'm really it's mostly the general fund items because that's the in which we have the greatest need. I do have a question. The very bottom management analyst conf what who who houses that position >> the management analyst uh confidential that's uh in uh human resources.
>> Okay, thank you. That that's helpful know. So yeah, I would um I mean the breakdown is here in terms of the potential general fund impact. Um since the chief has indicated they have done some hires um and may even be interviewing same thing with um Chief Johnson, it'd be good to get a upto-date um list of what positions and I'm particularly interested in the general fund positions uh are are vacant yet to be filled. and also the shareholder's council. I'm happy to announce that that a management analyst confidential position um that individual will start uh in two weeks. So we have made an offer the person has accepted it so that vacancy will be filled.
>> Okay. So we can get a really current to date list that would be great.
>> Should we be making the motion to postpone this item Mr. Mayor?
>> Uh no I think we need to open the public hearing still.
So, any more comments from council?
>> It's just a comment.
>> Yes.
>> If I'm correct, in the past, we kept vacancies open to to uh balance our budget.
If I had a former city manager, I would ask that question, right? But that's my understanding. Over the years, we kept uh vacancies open.
That that's how we balance the budget.
Am I right or wrong?
>> Well, I couldn't tell you what the p practice has been here, but I I can share with you that that is a a technique that some jurisdictions use.
Um, I would just offer to you that um, and we'll probably talk a little bit more about it when we get to the budget item itself, but um, I think there's a unique opportunity here that with your new incoming city manager and some new department heads that are coming in that we'll be able to evaluate, you know, the vacancies and the needs and, you know, the organizational structure within their respective departments that there might be an opportunity to look at these for efficiency sakes and so forth.
Um, I can also tell you that some of these remain vacant because um, some of these positions are more challenging than others to fill. Um, and it's not for a lack of trying, but you know, there's some challenges out there with some of these. And then also, um, you know, the we we are now getting to full staff in HR, which is going to be very helpful to go ahead and have more resources to put towards these efforts of filling some of these vacancies. So, we appreciate, you know, council's patience with this, but these are things that we're definitely um continuing to be actively pursuing because I can tell you that um these are the positions that were already funded. And as we shared with you during the budget presentations earlier in the process, um there was much more requests from other departments for new positions to, you know, keep up with the workload demands that we are not putting forward as part of this year's budget. So, u we appreciate the opportunity to evaluate these as we go forward. Um, but I will tell you that there, you know, I've heard from probably every one of the department heads that, you know, when's my turn and so, you know, it's it's not for lack of trying. So, but we can certainly give the council an update on the positions, but I I would I would ask that you would move forward with the item tonight um because we do need that to comply with the law. And um as Mr. Pey pointed out, we are in compliance with the requirements of the law. We're well under that requirement and there is no real need to modify the city's policies and procedures in this regard. So, um but I appreciate the comments and we'll we'll come back with list to date as we can get.
>> Thank you so much. So, now I'll open the public hearing at 8:50 p.m. City Clerk, do we have any public comments?
All right. No cars. Okay. So, now I will invite anyone in presence to uh speak on this item.
Seeing none, I will close the public hearing at 8:50 p.m.
Um and then any Uh, council comments.
>> Um, I would just uh agree with the city manager. I think that I'm just looking for an updated current list. I'm not looking to um continue this or delay a vote on this. Um, I think it's just I appreciated the detail in getting by department. Uh, and the cost associated with each of those positions, it does factor into our budget discussion later on. It's important for us to be informed about that. And, um, I do agree, Mr. city manager as we get new directors coming on. Um, and as we just discussed in the the special meeting we had on growth management, we may need certain skill sets in those positions that may or may not be in those positions right now. So, we'll look forward to new directors, the new city manager identifying opportunities uh relative to staffing and I'm confident that we'll have that type of assessment information. They've been on for a number of months.
Unless there's any other comments, I would move to approve.
>> All right, it passes. Uh, next item.
The next item um starts our regular calendar. And the first one we have tonight is to receive temporary access and emergency shelter quarterly update construction update and adopt a resolution authorizing the intram city manager or designate to execute an agreement with outreach ministries international for operation of the LOI access center and emergency shelter. And I'll turn it over to our neighborhood services manager Jennifer Ryan for the presentation.
uh Mayor, Mayor Prom, and members of city council, thank you for having us tonight. I do apologize. Mine's not as quick as the rest of that have gone forth this afternoon, but uh there is about 19 slides um because we do have several topics that we're going over.
They're just all kind of linked together. So, I tried to put it together in a comprehensive one PowerPoint presentation.
So, we're here tonight to provide an update on access center construction.
Um, an update on temporary access center um which will include budget status overview, comments from outreach ministries international which includes demographics and statistics, the treated success story and service gaps. Um, and then we will be here to request to adopt a resolution authorizing interim city manager designate to execute negotiated operator agreement.
So, the access center construction update I think a picture is worth thousand words. So, I wanted to provide some pictures of what's going on on the inside of the building. If you drive by 710 North Sacramento Street, um there's quite a bit going on on the outside.
Every day you kind of drive by, there's more and more walls up. Um they're they're getting all the mechanicals in.
They're getting drywall up now. Um so, we've even uh worked a couple Saturdays just to catch up on some of the time that we've um lost due to other items in regards to in environmental and weather.
Um, and so we are making good progress on the inside. And mind you, these pictures were from a week ago and it looks even different now looking at it. So, um, if you get a chance to drive by, go ahead and take a look.
And then, so just providing a construction budget and schedule update.
Um, the original contract amount was 9,866,433.
The original change order authority was 600,000. Additional change order authority was 1.5 million added for a total of almost 12 million. Uh currently we have executed 1.7 million change order authority which leaves approximately 300,000 remaining. Um and with that we do anticipate that um based on the last change order that just went through through May um that October 12th 2026 is the construction timeline.
Obviously everything can change as we move forward with the project but we do have a roof on the building walls going up. So the huge factor of any type of weather interruptions or anything like that has already been resolved with those.
With that, if there's any questions on the construction piece, I'll go ahead and open for those now. And then if not, we'll go into temporary access center quarterly update.
>> So Miss Ryan, can you go back to the last slide again? Um, so those were the change orders were just most recent was just time related, not not dollars or was there a combination in that? uh 2026 change order.
>> Actually, the most recent change order was actually a credit of about $9,000 um just because of the fact that um every time if we make an adjustment when they submit like material items or anything like that. Sometimes there's an adjustments in costing um in regards to that or if we're uh changing to simplify a design or something like that. A lot of times things happen on site. Um, so that's where we actually had a little bit of a credit on this last change order, but it was that as well as the the extension to October 12th.
>> Okay. So the $310,000 it remains is what we would anticipate for any future change order allowance then?
>> Yes, it would be.
>> Okay. Thank you.
>> Oh, just I'm sorry. Just one followup on that. uh if we don't spend the 310,000 through some miracle um would that could that go into operating or are we losing it? So, if we didn't expend that $300,000 towards construction, there are always furnishings, fixtures, and so it's called FFN that we could put those dollar amounts into uh to be able to fully maximize those dollars because it is a use it or lose it by December 31st, 2026 because the majority of those are tied to either the allocation from the county ARPA dollars or the city ARPA dollars as well. So, it it we would want to expend it in that capacity, but we have the ability to do that. Um, we also have a potential future CDBG project to finish out the parking lot in that area.
So, if we had sufficient funds, it's potential that we could start that project as well. Um, so we have ideas on how to expend that if if we need to.
>> Okay. Yeah.
>> Thanks so much. So, then we'll continue with the presentation.
>> And with that, we'll go to the temporary access center quarterly update. Um, this is our regular quarterly update that we come through. So, we've hit quarter 1 and two of the new program year. Um, and with that, uh, we are seeing that through April 30th, 2026 for two quarters is $472,627.
So, it's approximately $78,000 average monthly invoice. Um, I will say that um, OMI does a good job of being diligent with their funding sources. Um, we give them regular updates on where their budgets at as well. Um, and with that, they're coming um, under the average monthly cost for the total contract amount of $1.1 million. Um, as you could see, a lot of it goes into staffing because it does take a lot to staff an operation. That's 247. And then the rest of the the larger costs go into meal and service delivery.
So, with that, we do have a pit count update. Uh, demographics and statistics.
Um, so this year's pit count reported 1 468 sheltered individuals and 1,838 unsheltered individuals. And so just to explain the point in time count, um a lot of times uh it gets those numbers get combined together. Um so the shelter point time count counts anybody that's in a shelter that reports in the HMIS, which is the homeless management information system database. Um, and the unsheltered count is actually conducted by individuals and volunteers and city and county staff, outreach workers, nonprofit organizations go out one day at the end of January and make a visual count of individuals experiencing homelessness. And then um the COC has contracted with ASR who is our is the consultant to actually pull all that data and information together. they have a specific methodology that they determine based on the visual count they determine that final count number with that uh within San King County we are demonstrating that there is a decrease by approximately 47% and um preliminary numbers just with the COC that's been shared LOI is right in that range as well so we are seeing a significant improvement and impact based on the services that are being provided in our community um we're pretty close to where we were at in 2019. Um so that that's where we are making a difference through these services that are being provided and it's being recognized throughout the county.
Um with that as mentioned a little bit earlier by council member Bregman uh we are seeing a large influx of the senior population. So you see here um there's 78 individuals aged 55 to 61. Uh 71 71 individuals aed 62 that is a large demographic that is in our HMIS system within LOI. Um that is of the senior um demographic and so that is something that uh is consistently worked with with staff and outreach ministries and um other nonprofits to seek resources to assist with that.
With that, I will invite uh Jason Kapan and Johnny Cochran up to the the podium.
>> Yes.
I was gonna ask that. Huh?
>> I I should have recognized that. Yes. Uh so we did just go to the COC board meeting uh last week and we asked that exact question. Uh they were supposed to get the preliminary draft this week and then they said probably by end of June.
Um we would be expecting to have um the final numbers um presented. Um, this is a delay that we've already seen though, so I could see that um, it may go into the first part of July as well. But as soon as we receive the final numbers, we'll be sure to share that with city management and get that out to city council.
>> The county register must be counting him.
>> Oh, sorry about that. Added a Y.
>> Um, if I could just ask more relative to the demographics, um, how many veterans do we have a demographic number on veterans that are part of that mix?
>> Yes, we can provide that to you. It's all documented in the HMIS system.
>> And then go ahead.
>> Good evening, council. Once again, it's a great opportunity for us to be here with you and we want to thank you for your continued support at the LOI Access Center. Our mission continues to be to transition people from the streets of Loi into permanent housing. Uh before we go any further, I just want to echo everybody's thanks to Jennifer. She's been like such an incredible partner for us and just an incredible support um to help us learn this and to be able to become experts at helping people in this project that we're continuing to do. If you guys look at the uh the first slide, it talks about the number of people that we've been able to help uh in this previous quarter. I've been here many times now giving you updates and these numbers have not changed. Every single month, every single quarter, our percentages are exactly the same. We have worked hard to create a reproducible process to help people get off the streets and we're seeing the success. If you were to go into the LOI access center July 1st, 2026 and you were to look around the room, you would see about 46 beds on a nightly basis.
Out of those 46 beds, if you come back at the end of the month, a third of those people are going to be gone because we've helped to transition them into jobs, into housing, and into rehabilitation programs. Our numbers are 30% month after month after month after month. We are very excited about the new permanent access center.
We're going to go up from 46 beds to 60 bed or 46 beds a night to 60 beds if we don't go into overflow. A five-year contract with 60 beds a night at a 30% transition rate equals over a thousand people over a 5year period of time.
That's a lot of people. And that's the consistency that we're seeing month after month after month. We have all the we have all the confidence in this process that we've created because of our tree to success. If you look on the slide, the um number of people that we have been able to help in the first 18 months is 257 transitions of 228 unique individuals. That means some of these people we've helped them get jobs. Some of them we've helped them get jobs and housing. But there's been 228 individuals that have families, that have names, that have history, that have stories, and those people's lives have been changed. We just heard the point in time count. Amazing. 40 over 40 47% drop in homelessness. That's because this is working. If we do not fund this permanent access center, those numbers are just going to skyrocket back to where they were when we took over um less than two years ago. Um we're excited about our tree to success. This is the reproducible process that we presented to you in our very first uh council presentation and every month we fine-tune it more and more and more.
This is something that we believe um addresses every key need that an individual that comes through our doors has. And many of these things we have been able to collaborate with other agencies and with other organizations and other nonprofits that are trying to do the same thing that we're doing. And the collaboration that we're seeing and the and the resources that are being shared um I believe is unmatched. We're we're seeing this success because there's there's truly a group of people that care coming together to make the difference. And I don't want to belabor the statistics to you guys, but there is one statistic that's not showing up on there that you will see next time we report. About three months ago, we were able to bring on additional staff to begin helping our workforce development program. This is something that we've been doing on a small scale since day one. Um but we're really seeing um a lot of momentum with it right now. Just this last month in the month of May, we were able to help 15% of our clients get jo uh get jobs. This last month we're seeing more collaboration from the business community, more openness um from the business community in their just their approach to us. And we're seeing great success in that. And so a workforce development program is something that we're very very excited about because we believe that in order for somebody to end homelessness permanently, they're going to have to have a job. And so we're working on that really hard. The last slide I want to show you is just a typical success story um of a nameless man um but he represents a real man that we know very well. He came in as a client to the access center. He was also uh a client of Hope Harbor Next Door.
We've been able to collaborate with Salvation Army so many times in so many different ways. And through our efforts together, he was able to uh gain his class A truck driver's license. And he found a career in Sacramento. We were able to help him get there. And not only is he working in Sacramento, but he's also become the house manager of a sober living home in Sacramento. And he's continuing to thrive and he's continuing to succeed in his recovery uh and his success. And this is just a snippet of many, many, many, many stories that we could share with you tonight of entire families that are being changed as a result of the investment that um the city of Loi is making in the LOAI access center. The other thing is, it's it's been spoken of many times tonight, so I don't want to belabor the point, but we do have almost 40% of our clients are seniors. And so, we're very excited about what council member Bregman was talking about, the opening up of more senior units because it's a huge need that we need to address. And that's all I have. So, if you have any questions for Johnny or I >> So, just just making comment. I'm very impressed your report. Thank Thank you guy. Thank you for doing a good job.
>> I'll echo that. No questions. Just a thank you. Thank you from our community.
Thank you from city council.
>> You guys can go ahead have a seat.
Okay. Now we are moving on to access center operator agreement. So, first I want to say a huge thank you. A lot of people went into this process. Um, obviously when we went through a request for proposal process, we had an evaluation committee from the community that that kind of started down this process. Uh, we had a successful award by city council uh backing outreach ministries international. But the one thing we did request was the allowability to negotiate the agreement.
Um and so with that that also included bringing in our other partners. Our county partners have been an integral part of this process because we are looking for um CAL and medical reimbursements and we wanted to make sure that there was no duplication of services or anything like that. I'll talk about that more in the future slides. This is just kind of the thank you uh initiation. But I just want to thank the county board of supervisors, supervisor Ding. Uh we also have Nicole Gearing in the audience and and just really a lot of the care services staff which includes Genevie Valentine, um Sasha Jackson, Joan Singen, uh Ahad Yousef, Matt Garber, um from the county perspective and each and every one of them have reviewed um a lot of the enhanced case management uh scope of services and we all agreed on it before we added it into the agreement. So, I just want to thank them for their time.
It was a lot of back and forth um in regard to that.
And then with that, uh we want to also go into the services included that outreach ministries will be providing.
Uh if you saw your agenda packet, their whole RFP was also attached because that is kind of the services that are agreed to. We did dial it into a scope of work that was about three or four pages in addition to that to just kind of summarize that whole RFP. But essentially they will be providing services for the 247 low barrier shelter which includes intake, shelter operations, safety, security, case management, housing navigation, workforce development and stabilization.
This is a very short summary of what they provide. There's an extensive list of other things that are included. Um, but with that, the terms include the proposed agreement term is five years.
However, continuation of services or will remain contingent upon the availability of funding. In the event sufficient funding is no longer available, the city may initiate reduction of scope or a structured ramp down of services upon 60 days written notice and allow operational uh transition, planning, and coordination of client transitions and continuity of care. This would be our absolute last resort. Obviously that would not be something we would want to do. Um and with that >> how how much money do we have left?
>> So we do have sufficient funds for the first year of operations.
>> So until what date?
>> Uh it would be uh November of 2027.
>> 2027. Yes.
>> And then with that we are working diligently not only as staff to apply for grant opportunities. There is actually a large grant opportunity that we're going to be submitting um within the next few days here um which could provide a a good extended portion of funding if awarded. But we are also planning for contingency funding uh allowabilities not only with connection with outreach ministries for fundraising opportunities and donations but also looking at expanding our reach much larger to foundational support and and other community resources as well because um as demonstrated this project it has shown that it's successful in transitioning individuals off the streets and we want to make sure we give it the best foot forward to do that. Um, and with that, OMI really came alongside us with this negotiation process. Um, when the RFP was submitted, it was at just over 1.8 million and they reduced it over $200,000 uh to come in line with what the available resources for the city services were and part of that was tied to the San King County coordination. So we uh really define roles and responsibility to avoid duplication of service but also to maximize allowable reimbursements.
There's been conversations of not only providing enhanced case management but also potentially uh OMI taking on medical respit in the future as they dive into this which has a much larger reimbursement capability. Um so those are additional items that we're looking at. We do anticipate that this first six months to a year will give us a better idea of what those reimbursements could look like to better project for future revenues um moving into the future.
So already talked a little bit about the the coming down of the $200,000 in the calim um offset, but also just that OMI is pursuing uh charitable support and they've actually already started that process. Um, so they have already accounted for a certain number in their budget and as part of the agreement they are to report on that to the city as well. Um, to be able to account for those resources that are coming in um, and potentially bank anything over than what was projected in their budget into a future year. Um, because as we know, grant resources have deadlines to expend. So, we'd want to expend those first before we utilize certain resources that didn't have the same timeline to expend.
So year one, the budget is $1.6 million.
Um the funds that will be utilized is homeless housing assistance and prevention. We have rounds four and five. Uh we do anticipate a future round of HAP coming down the pipeline in the next uh year. Uh so the city would be applied for that as well. We also have permanent local housing allocation dollars and the last of any ARPA dollars, we'd want to spend that as well. um there are sufficient resources within the other ex uh grant resources that do not expire December 31st that will get us through that 2027 time frame on that. And I will note that permanent local housing allocation actually doesn't expire for like another three years and so that would be the last one expended. So if we were able to utilize other sources first we would do those and keep that for maybe another program year if allowable.
We did note in the agreement similar to their temp uh the temp facility uh performance and accountability monthly invoicing audit and budget monitoring occurs. Monthly reporting as part of the invoice submission and that's kind of similar to what this quarterly report that we just presented. That data is given to staff on a monthly basis. Staff also meets with them every two weeks to just check in on how um operations are going, but just any needs or anything like that. Uh so that's a regular check-in point. Um all the monthly reports will demonstrate program housing and workforce outcomes and quarterly updates will continue to city council to make sure that the council is aware of how the progress is going moving forward.
With that, uh, we recommend that, uh, city council authorize the inter city manager or designate to execute a five-year agreement with an option to extend for additional five years term with outreach ministries international for operation of LOI access center and emergency shelter. I know that was a lot of information in a short period of time that took months to gather on our end.
So if you have any questions, we are open for that. OMI is in the audience.
We also have county staff in the audience as well to assist with any questions.
>> I don't see your question. Council woman Greg, but I think you pressed the button, right? So you have a question >> on on our transitional housing project.
Is there a relationship between the access center and opportunities uh for transitional housing? I think it's it's it's fun the funding is coming from medical. Is that what it is? Or >> um Sasha's actually in the audience and she's actually over that program from the county. So I I believe it's Bridge, but I don't want to speak on their behalf for their funding mechanism for the program for Main Street.
>> See, there's a good reason you came.
>> She's the expert in the room.
>> Good afternoon. Um, what was the question again?
>> I'm looking for the uh relationship between the access center and opportunities for access center um residents to transition to the transitional housing. So is there a relationship there?
>> So yeah, so the transitional housing which is the um reimagined on LOI um our goal is for those individuals that are in the LOA access center to get connected to the single room occupancy um for intram housing and then get connected to permanent housing.
>> Okay.
>> And then how do they know Johnny if this is better for you to answer but how do they end up qualifying? Is there a waiting list? Is there a prioritization because of the fact the county is involved with both of those uh sites?
>> Um at this time it's not a wait list. Um but individuals they do need to qualify for behavioral health services. So they get connected to services and then we also have um a referral process internally that their case manager would do. So if they're coming from LOI, they would be connected to our LOI clinic here. Um their case managers will fill the referral. The referral gets triaged by my team and then we place those individuals at the single room occupancy. Um they also get case management by behavioral health services which supports them with the psychiatry as well as identifying permanent placement.
>> Thank you.
>> Yes.
>> Any other questions on council?
>> Jennifer, would you be able to go over uh other entities that are actually giving funding towards this item? My understanding is we are getting some type of medical funding and county funding towards it.
So, as far as this goes, we are working and and I I don't want to put it out there because they are the ones that earned it, but Outreach Ministries has actually been working really close with getting uh medical billing approval. And they were actually just approved, I think just last week, to be be able to become a medical biller, and they probably won't toot their own harm, but it is a very difficult process um to be able to get certified, to be able to bill those services. Um and a lot of operators are still trying to figure that piece out and have not gone through that process yet. So they are already taking that first step towards that. So, we did account for some of those dollars as offset into um the operator agreement. Recognizing that within the first six months or so, we're probably going to have a better idea of what those reimbursements are going to look like because unfortunately it's an unknown now until we we are able to actually start being able to bill those services because there's specific services that are billable. Um, so probably in the second quarterly update once the permanent center is open, we'll be able to give a better uh reflection of what those reimbursements are actually looking like and we'll really help project what the need for that next year's budget's going to look like.
>> Okay, thank you.
>> Any other questions from council?
>> Just just a followup. Um when we ended up doing a town hall on the issue of homelessness, each department identified over the years uh what expenditures they had related to that community. So is that something we can continue to get on an annual basis because I think that was extremely helpful for people to understand that through various other departments we're providing services and assistance to that community and it has a dollar value associated with it. So, um just just a note that I'd like to see that um those calculations done. You know, mid year would be great to get us a sense of what we're investing because we are investing city resources into um project. We will definitely make note of that because that is a good statistic to be able to share that information especially once the permanent facility opens and to be able to kind of see what that progression look like looks like especially once we have additional space available. Um that'll is be much more important as well if medical respit is able to be put into place because I think that'll be a key identifier with the hospitals and if that helps offset some of those um occurrences that they're seeing as well being able to place an individual that would normally maybe have to require to stay in the hospital because they don't have someone a clean safe environment to be able to stay in. So I think that would be a good statistic as we move into the permanent center and kind of seeing how those things adjust and the costs going into them. Thank you.
>> Okay, see uh no more comments. We're going to move to public comments.
>> Mayor, I do have one comment card from Lisa Myers Hill.
Is it Mayor's Hill?
Uh, Mayor Yupez, council members, I'm here tonight to thank you and the council members from the last five years for your foresight and your political courage in supporting the creation of the Loi Access Center. Everyone in this room understands that you have to weigh many factors when you're making these decisions.
I would also like to publicly thank the Sanwaqin County Board of Supervisors Ding uh for their support of Loi and of the Access Center in finding creative means to both help offset costs and bring muchneeded services to the city.
It is evident that your faith in the project has proven to be a wise investment. We need only to think back five years ago when a visit to our downtown meant you were forced to bear witness to human suffering and its physical symptoms on our streets at a level most of us had not seen before in our city.
I often avoided it altogether seriously.
Um either because it was emotionally just too disturbing or because I did not feel safe.
And that has changed for America's favorite small town. The partnership between Salvation Army LOI Corps, Hope Harbor Family Services Center, and the LOI Access Center is something that we all can be proud of. I want to close by saying that when we help even one person transition out of being unsheltered, we don't just help that one individual.
Unsheltered people are mothers and fathers, sisters and brothers, sons and daughters. Everyone in their life is touched and that ripples into our larger community.
The success of the LOA access center demonstrates what can happen when local government, nonprofit organizations, and community partners work together towards a common goal. Thank you all of you sincerely for believing in that vision and helping to make LO a stronger, safer, and more compassionate community.
>> Thank you for your comment, >> mayor. That's the only comment card I have, but you're welcome to open it up.
>> Yeah, welcome any uh comment at this moment about this item that we're discussing right now. Seeing none, I will go back to council comments. Any last council comments? Uh Dr. Nanisha is supervisor Ding, is that you?
>> I do want to ask you, Steve, I know Steve for a long time. You know, the cities don't have funds to give social services, right? And we're doing it we're doing this extra. We got funds and so forth, but to carry it on, we need funds. Do you anticipate the state to give money to the counties and the cities for homeless in the future?
I'd appreciate you asking me what the winning lottery numbers are. This coming week, it would be easier. Um we we are we're going to go through some tough economic times. Um I don't know what to count on from the state, from the feds.
We've got realignment of HR one funding, you know, as you know. Um the county of Sanwaqing County right now is in great a balanced budget. U we've been fiscally very conservative. Um we just uh passed our budget Tuesday. That being said, I'm I'm very in tune to where the city of Loi is and and we are already, I think, one step ahead having discussions about, you know, the whatifs. Um what if we are short on funds, you know, how do we do this? We're we're having discussions about um the clinic.
discussions about alternative destinations and and who would fund those processes and uh but at the same time recognizing the overwhelming success that Johnny and his team have delivered and I think shocked a lot of people.
Thank you, Jennifer.
Phenomenal job. I tried to hire but they said we didn't have any money. So anyway, we're gonna we're going to stay in close contact and we're going to figure this out together because it has made a drastic difference.
>> Thank you.
>> I just I do have a question. So the So then the money is going to run out by November, right? 2026 if we don't raise any money and after that it's going to be 1.8 or 1.6.
Which one was it? Sorry. So the temp contract goes through October of 2026 and then this would take effect as soon as that one ended which would be October 23rd that this would take effect. Um and then we have um the first year of operations for that and then we would be continuing over this next year to try to secure resources to fund that next year of operations.
>> And what happen if uh when they try to is less than the 1.8 A if it's let's say there's only 500 what does the contract has anything to say about that? What happened in that case?
>> Yes. So there is a disclaimer in the agreement um which we put into our lot of our service agreements that should funding not become available that there is an opportunity for the city to work with the operator to potentially reduce services to within available resources or if worst case were to happen to ramp down services with a 60-day transition period because the last thing we would want would be for individuals to not have the opportunity to transition to other locations. Um, but that's why we are working closely with not only the operator but our county partners and our community partners to make sure that we can continue to secure those resources to try to keep this moving forward.
>> Yeah. No, that that's important because like we all know we are going to the economy is not going to be very well. So I you know we we can wish that we can raise money but you know I'm a realist and what is going to happen is that in November when I'm sitting on that side because I'm not going to be married I'm going to be sitt on that side we're going to come back here and we're not going to have money. So what I'm trying to uh have exit the strategies for the city that it's not going to come out of general fund of the city at that point because I have had conversations with other agencies and they were under the impression that we are going to pay when that happens and I had to disabuse them of that idea. So I just want to make clear that we all understand that. Yeah, without with that I would entertain a motion.
>> Move to approve uh the contract with outreach ministries.
>> Second.
All right. And it passes. Next item.
The next item on the regular calendar is to adopt a resolution approving the fiscal year 2026-27 financial plan and budget. Approving the fiscical year 2026 27 appropriation spending limit. Approving new job classifications and reclass studies for the for requested positions. Approving the budget and fiscal policies.
approving the investment policy and approving the annual GAN spending limit.
And I'll turn it over to our budget manager, Janelle Baker, to give this presentation.
All right. Good evening again, Mayor Yapz, Mayor Promhothy, and council members. Tonight, staff is recommending adoption of the fiscal year 2026 27 citywide budget. This budget reflects months of collaboration between departments with a commitment to maintaining essential services.
So, just as a reminder, on May 6, staff presented the general fund budget challenges. On May 20th, we presented the enterprise and special fund budgets along with their associated capital improvement programs. And on June 3rd, the general fund budget associated with capital and replacement funds and the five-year forecast. This evening's presentation is intended to summarize the overall citywide budget, review the key budget items, and discuss the minor changes that are re recommended by staff. With that, I'll begin with a brief overview of the recommended fiscal year 2627 citywide budget.
So this is the overview. Tonight's presentation will focus on the additional information requested by council during the budget study sessions, the proposed updates to the recommended budget, and the actions required for budget adoption. We will also review the capital improvement plan, citywide expenditure summary, appropriation spending limit, and several policy overviews before concluding with staff's recommendation recommended actions. If needed, I have also available the information from the prior special budget meetings for reference during the council discussion.
So this is additional requested information. This is the overview of the measure L expenditure history. So since implementation, expenditures have expanded from approximately 650,000 in fiscal year 18/19 to a proposed 9.2 2 million in fiscal year 2627 reflecting how essential measurel revenue is for supporting city programs and services.
The city utilizes HDL companies as a consulting firm specializing in sales tax analysis to develop measure L sales tax projections.
HDL reviews historical revenue trends, taxpayer level reporting data, economic forecasts, and local development activity to provide revenue estimates used in the city's budget development and long-term financial planning. So, tax challenges were provided um by staff to council and they were reviewed on the May 6th meeting that were specific to the sales tax overview.
So although measure all revenues are accounted for within the overall um general fund budget, they are tracked separately through a dedicated organizational unit to provide transparency and accountability. This structure allows the city to clearly identify measure L revenues and expenditures and demonstrate that funds are being used for specific purposes.
Measure L supports both general fund and special fund operations and services. So while the 200627 proposed budget reflects a decrease in expenditures compared to fiscal year 2526 estimated actuals, the fiscal year 2526 amount includes mid-year appropriations for labor agreement, salary, and benefit adjustments.
So the public safety continues to represent the largest use of measure L funding. combined police and fire expend expenditures account for approximately 7.9 million or over 83% of the fiscal year 2627 proposed measure L budget. So while four police officer positions were shifted from measure L funding to the general fund as part of the fiscical year 27 budget balancing strategy, all existing police officer positions remain fully funded through either Measure L or general fund resources.
Measure all funding has also provided ongoing support for parks and recreation beginning in fiscal year 20 and um annual measure support for PE for parks has generally exceeded 1 million and has funded recreation programs, park maintenance and community facilities. So although in fiscal year 27 allocation is lower than recent years, measure continues to provide substantial um support for these services to assist in balancing the measure budget. The annual contribution to parks capital was shifted to general fund for fiscal year 27.
Library services have also benefited from measure L funding since 21.
Um they have supported both the library operations and a dedicated library position that is housed in measure L.
Street maintenance funding was introduced in fiscal year 21 and continues um through fiscal year 27. So it's partially supporting the salary of one streets worker. And overall the expenditure history demonstrates that Measure L revenues have been consistently directed towards funding dedicate funding dedicated to public safety while also supporting recreation, streets and library services.
So on the next slide, this is a percentage breakdown of the same information. Um, police and fire services have consistently accounted for approximately 80 to 90% of the total measurable expenditures. In fiscal in the current fiscal year 26, police represented 49.9% of expenditures and fire 33.7 resulting in a combined public safety investment of 83.6.
Um, parks funding has increased from approximately 2% in 21 to 11.9 in fiscal year 26. And similarly, library operations and the dedicated library position have grown from less than 1% of expenditures in 21 to 4% combined in fiscal year 26. So the bar graph on the top is a better visual of the continued support of police in blue, fire in red, parks in green, library and librarian in bright blue and gray, and streets and non-EP departmental in yellow and purple.
So next we're going to updates from the budget book presentation. So minor changes that happened in the budget.
The primary update is um is in public works for um the in the general fund their general fund account and it is the reassignment of the public works management analyst position from the general fund to the water and wastewater funds. As a result, both the positions base salary and the associated reclassification costs have been removed from general fund budget, reducing the amount of general fund balance required to support the position. In addition, personnel transfer recoveries from the enterprise funds have increased with engineering facility divisions to more accurately reflect the services provided to those operations. These adjustments improve cost recovery and provide a more accurate representation of the general fund's actual service obligations.
And then due to the reassignment of the public works management analyst position and the personnel transfers the general funds reliance on general um fund balance was reduced. So the um programmed general fund fund balance it was decreased from 4.3 million to 3.9 million and that improved the city's overall fiscal position while maintaining current service levels.
Um, another update from the budget book that we did present at the end of um, last meeting, general fund meeting was that transit has balanced their 27 budget by programming additional revenue from TDA allocations.
Um, this has resulted as a result the previously projected operating deficit has been eliminated and the fiscal year 27 transit budget is now balanced.
So the um, TDA revenues were increased by a total 1.3 million. Of this amount, 554,000 was allocated to capital activities and 741 was allocated to transit operations.
So, now we're going to turn to the position request. Staff has listed um the fiscal year 27 staffing recommendations to reflect the changes discussed during the budget review process. As presented during the study sessions, the proposed budget does not include any new general fund positions.
However, several new positions and reclassifications are recommended with within enterprise and special funds where ongoing revenues are available to support the additional staffing needs.
These include the senior storekeeper for water wastewater, transportation coordinator for transit and admin assistant for community development building division.
Reclass studies will be conducted for a public works administrative manager, management analyst, and a senior engineering technician. The new position requests intended to address operational demands, regulatory requirements, service delivery needs, and workload increases identified by departments. The propo proposed reclassifications recognize changes in responsibilities, organizational needs, and efforts to maintain competitiveness within the labor markets. So, the following table summarizes the new position positions and reclassifications for fiscal year 27.
This is the individual capital improvement program projects that were presented during the budget study sessions are included in detail in the draft fiscal year 27 budget book. This slide provides a summary of the proposed capital expenditures by fund and highlights the city's continued investment in infrastructure, public facilities, utilities, transportation, parks, and community improvements. The amounts shown represent new fiscal year 27 pro project appropriations only.
Existing appropriations for multi-year projects that remain active at the end of fiscal year 26 will be carried forward through the year end close process and added to the fiscal year 27 budget.
Okay, so this slide is an overview of the citywide expenditures. The first table summarizes the proposed fiscal year 27 general fund expenditures by department which totals approximately 96.2 million. As discussed throughout the budget study sessions, the fisc year 27 general fund budget was developed in a constrained fiscal environment with expenditure growth continuing to outpace revenue growth. But overall, the proposed fiscal year 27 general fund budget balances available resources with community service expectations and continues funding for the city's core operational needs.
The second table summarized the proposed fiscal year 27 expenditures for the city's enterprise and special funds which total approximately 26.1 million.
Unlike the general fund, most of these funds are supported by dedicated revenues, user fees, assessments, grants, and other restricted funding sources that are used to support specific programs and services.
>> Before you move on to the next slide, can you go back?
>> Yes. So this one and the item that says a street uh what is what is that in title because it's so it's only like 70,000 >> that is the partial um streets worker that is housed in measure L. So since we lump measure L into the general fund budget um that is one of the categories that gets funded in general fund.
So the next slide is the overview of the GAN appropriation spending limits. And the GAN is established by article 8B of the California constitution and places a limit on the amount of tax proceeds that local governments may appropriate each fiscal year. The limit is adjusted annually based on changes in population and inflation and is intended to control the growth of government spending funded by tax revenues. So for the fiscal year 27, the city's appropriation spending limit increase from um 156 million to 164 million. The increase is based on the state provided adjustment factors which include a population factor of almost 1% growth and an inflation factor of almost 1.05 resulting in a combined adjustment factor of 1.048 or approximately 4.8%.
So applying these factors to the prior year's limit generated an annual increase of 7.5 million, bringing the city's fiscal year 27 appropriation spending limit to 164 million. And the city's appropriations remain well below the calculated spending limit.
Okay. Okay. So, California government code section 53646 recommends that local agencies annually review their investment policies and submit to them and submit them to the legislative body for consideration.
So, accordingly, the city of Loi investment policy is included in the council packet presented to the city council for review and approval. Staff is not recommending any changes to the investment policy at this time. The policy remains consistent with the city's investment objectives of safety, liquidity, and yield while providing internal control procedures designed to safeguard public funds from loss and appro misappropriation, speculation, and fraud. Also, the policy continues to adhere with the requirements of California government code sections 5360 through 53692, which government the investments of local agency funds.
So, in addition, the city's budget and fiscal policies provide a framework for responsible financial management and guide the development, adoption, and administration of the annual budget.
These policies establish principles related to budgeting, reserves, debt management, capital planning, expenditure controls, and long-term f financial sustainability.
The budget and fiscal policies were comprehensively reviewed and updated as part of the fiscal year 2526 midyear budget review process and were subsequently adopted by the city council. So since that adoption at midyear, staff has reviewed the policies and determined that no additional revisions are necessary at this time.
The policy continues to reflect current best practices, organizational priorities, and the city's financial management objectives.
So given that recent comprehensive review and adoption of the policy, we are recommending actually pushing the next um review to the fiscal year 2829 annual budget. However, just like midyear, the policies can be brought back to council for review and amendment at any time should operational, regulatory or fiscal conditions warrant revisions or at the direction of city council.
So although we are going to make it mandatory we come back for fiscal year 29 review, we can bring it back at any time if there's anything to change.
Are we able to get a quick just update from our finance committee on our investment policy if there is any good information to give?
>> Are you able to give that up?
>> Yeah, there I mean really our policy is really it's mirroring the state um guidelines for the investment and prudent investment of our funds. Um obviously the well not obviously but the state does not allow the city to get into any risky or high yield um investment type of products just so that it protects taxpayer dollars. Um so really again our investment policy we did have our um current vendor Wells Fargo who holds most of our investments review it and it's almost to the letter I mean I it is to the letter following the state uh mandates.
Okay. As part of the budget adoption process, the city is required to adopt a publicly available salary schedule in accordance with the employee public employees pension reform act or PEPRA and Kalper's regulations. The salary schedule is presented in two ways in the budget book um by salary amount and by position title. The salary schedule is also posted on the city of Loi website under the human resources page.
And then in addition, government code section 54953C3 requires public disclosure of local agency executive compensation prior to final action by the city council. So the adoption of the salary schedules as posted in the budget book and on the city website and the execution of compensation information presented on the following slide satisfy these statutory requirements and ensure the city remains in compliance with upful state laws and regulations.
So here is the slide that has the city executive compensation information as required by government code 54953C3.
Okay.
So with that um overview the recommended actions are as part of tonight's budget adoption staff is recommending approval of the following actions. adoption of the fiscal year 2627 citywide budget totaling three mil 302,351,60 adoption of the city's appropriation spending limit commonly referred to as GAN in the amount of $1649,380 for the general fund. Approval of a net increase of three positions citywide to support operational needs in enterprise and special funds. adoption of the fiscal year 27 capital improvement plan, which includes over 10 million in new capital project appropriations and establishes the city's plan infrastructure investments for the coming fiscal year. Adoption of the fiscal year 27 investment policy with no recommended changes from the current policy. Adoption of fiscal year 27 budget and fiscal policies.
Adoption of the city's salary schedules and acknowledgement of the executive compensation information presented satisfying the requirements of PEPA and government code 54953C3.
So these actions collectively establish the city's operating capital financial management and compliance of framework for fiscal year 27.
And in addition to what you're um going to review and approve after this, we are also recommending ongoing quarterly budget reports to council to monitor the current year budget to actuals and monitor current budget assumptions.
So with that any questions or comments?
>> Thank you so much. First of all, I like the US now have pages pages on the top so we know where we are in the precision. So thank you Eron for that.
you will leave something here in the city.
So, so we'll move it to council comments. Uh, Councilwoman Craig, >> Mr. Mayor, might I ask if we might do public comment first? I'd like to kind of hear from the public before I make any comments.
>> Yeah. No, I think that's that'll be good. Um, Madam Cher, do we have any public comments on this item?
>> I do not have any comment cards for G2.
>> Okay. I will invite participate. Oh, actually, yes, you do. Yes, I do.
>> For once, I used a comment card.
>> Huh?
>> Is what it was hidden under the rest.
>> And for the first time, I'm bringing notes.
>> Council, thank you. Janelle, thank you for 850 page budget. Incredible amount of work. Um, I'm going to start with something positive. Shout out to West Ray and Vizlo.
Not only um did he rally the troops and give us national recognition with America's favorite small town um that actually has serious financial implications. We generate about $300 million a year in tourist revenues. This is a huge marketing opportunity for us.
So there is we don't know what that's going to be but we need to exploit that across the board.
>> The budget um a lot of data. I can see your guys is going through this stuff.
It's just you glaze over. It is a lot of detail. Here's my summary that I could derive from this.
You are running at a deficit of 5 million a year after you cut about 7 million a year out of your budgets. I'm assuming it was put in the budget for a reason.
That $7 million is really added to $5 million. You're running at a 12 million deficit.
because you're not doing the things that you're supposed to be doing.
And that $5 million deficit, guess what?
You're wiping out your reserves in five years.
There's only there's only one way a business goes out of business. You run out of cash.
You're wiping out your savings. So I when I look at this, I kind of I took a simplified view of the budget, which is this is a cash flow problem, right? You are spending more you're making. Now, your first reaction would be when we've got to stop spending. You've been doing that for years. It's creating a huge problem for you guys. This this when I say you guys, us, the citizens of Loi, it's creating a huge problem for us because we are going to have a financial crisis that we're not going to be able to deal with soon. Soon the deferred maintenance that I talked about last time is going to bite us. We are, as Supervisor Ding said, we're not heading into really good territory in the future. We're going to have some financial difficulties in the future.
So, we're at a critical junction right now. Um, you've heard the phrase of the best time to buy real estate was 20 years ago. The second best time is right now. The best time to solve this financial crisis was a decade ago.
It's too late for that. There's strong action needs to be taken now.
So, we can look at this doom and gloom.
Well, it's the end of the world. Or I like to use this phrase, opportunity to excel. We have a challenge. When I say we, it starts with council. Um, and it's going to require some pretty deep analysis and some common sense decision-m and some hard hard decisions because these are not going to be politically palatable.
I think you need to execute on three planning horizons simultaneously.
You need to be doing stuff today for 10 to 20 years now. And those are things like annexation, introducing new industry into town, getting higher paying jobs. That's not quick. That is not easy. You can't wait 10 years for that. You got to work on that now.
Medium-term five years. infill business retention critical.
You guys know when we lose business here, it makes a huge difference to us.
Huge.
Um, an enhancement of existing resources. Um, you heard me talk about quiet zone. We have an underutilized resource called Sacramento Street.
Existing buildings, great real estate.
We got a a horn that gets blown every 10 minutes and just wipes out that quality real estate for you in terms of good businesses that you can put there and a good tax base you can put there. Um I think Mike Collins wants to put an Airbnb on the second floor of his building. Can you imagine actually staying there at trying to stay there at night with that kind of noise uh pollution going on? And in short term um cost mitigation, cost sharing with government agencies. Um I love the fact that Steve Ding is a great partner with us. Um and there's a huge opportunity there. They're having rough times. We're having rough times. Your budget's 300 million. Their budget's three billion.
Something that could be a rounding error to them could actually significantly enhance our financial situation, particularly related things like access center, right? Um and while he feels like he has no money, he has more money than we've got. So, it is an opportunity to kind of partner on some certain things.
Revenue resources. Um, cannabis tax, no-brainer. This is not a moral discussion. This is not a legal discussion. This is everything needs to be on the table. Like, if you have free money, you take that free money, just do it.
Lobbying.
Uh, Mikey has made this point many, many times. We have $70,000. I don't think it's enough. It's it's a return on investment question there. Like how much money do you want to put in for how many dollars out? Um I think $70,000 is a great start. Um but we need an RFP. We actually need to hire people. We need to execute against these things. Um asset monetization. Um Lisa makes this point all the time. We have resources in town, real estate resources in town that we need to look at and figure out how we can generate revenues from those resources instead of looking at them as cost effects. Uh advertising sales Mike Collins actually made this suggestion the other day. And then you're getting into areas, this is where you guys are gonna take it in the head.
Um, utility rates.
You cannot run a business where costs keep going up and your prices stay the same.
It's effectively what you're doing. Um, you have escalators based on CPI. That is not your inflation rate. You have real costs that go up at the city at a higher rate than CPI. You need to rebaseline that thing and about where those utility rates are coming in. The reason I know that is because you're not making significant investments in your infrastructure.
You're asking staff to cut things that are fundamental to the future of the business. If they had the budget, if they would get through those utility rates, they would do those actions.
Period. So, what that is exactly, I don't know. But when I look at the budget, it stands out loud and clear.
And the last fiveletter word you don't want to hear is taxes.
significantly under the limits is what we're spending, right?$150 $160 million limit. I'm not saying go there. Um we would uh I'm sure somebody's probably going to try to shoot me as I walk out of this building. However, we all as citizens, we need to pay our fair share.
So, um and that is going to be a painful conversation and that's going to require some political will and some of you guys might lose your jobs, but you need you need to do this for the long term of the city.
I hope everything I just said was no duh. I hope all of you thought of course that's exactly what we're doing. That's exactly what we're going to do. Nobody needs to come and tell me that. This is my job and I understand it. Thank you.
>> Thank you for your comment. Next comment.
>> Yeah. Well, Ditto, I was you said a lot of what I was going to say, but um One of the things I keep hearing repeatedly from businesses and folks who would like to come into our community is that the permitting process is driving them away and keeping them from getting here. So, if we're going to develop new revenue sources, if we're going to develop businesses, we really have to take a look at that process because it's actually not allowing the current businesses to grow the way they'd like and it's actually keeping other businesses from coming in. So, it's something we need to look at as a city and as a community. Raising revenues is always the third rail of politics. We know that it's going to be a challenge.
No one's going to be excited about raising their taxes, but they're going to be less excited when our infrastructure starts falling apart. So, either we pay now or we're going to pay tfold in the future. Thank you.
>> Thank you for coming. Next comment.
>> Fight each other.
Uh, Mayor Yupez, uh, members of council, city staff, uh, thank you for the opportunity to speak this evening. Um, I think, you know, uh, a lot of good points have already been made. I think, uh, what I would like to say is that, uh, what I see is that there's going to be constraints on staff's ability to really to maintain the level of an operation that they already have, but and we want to have some transformative things happen in this community. Uh Scott identified some. I think you'll hear some more ideas tonight. So, if if there's a limit on what we can do in terms of our current resources and we're not going to be able to go out and seek outside resources, we have to look internally into the community and identify where those resources lie and leverage them. I think there's a lot of of knowledge. There's a lot of uh you know the volunteerism in this community is incredible to to efforts that that people see fit for them to invest their time and energy in and where they see results. And so I think there's there's been some overtures from some of the current leadership at the staff level and definitely from council in terms of forming partnerships. I think we had a a meeting last week where our acting city manager discussed what private and public partnerships look like and how they they serve the city to accomplish its objectives. That's really, I think, where we need to look very aggressively in ways that we haven't before and to be able to leverage that expertise to be able to bring in additional resources to be able to create that uh create the outcomes that we want because we're not going to get it through the traditional means that we've been able to over the past century of the history of this city. I've been up here many times talking about the chamber's willingness to help uh be that sort of partner. we stand here still ready. Um, and I think if we can get that started, um, you know, some of these objectives that may seem too big or may seem unattainable all of a sudden look like maybe we can.
And so, uh, I know it's it's incredibly challenging, but I appreciate the fact that these conversations are being had.
And really, I want to encourage you. We need all five of you to work together as a body to get through this. It can't be done by one council member or just by the mayor or just by the city manager.
It's going to take you as a body working together to get through these these challenges. So, uh we're here to help drive those conversations forward and execute on the work and we're also here to help uh you know ultimately all of you be successful. I I hope they don't lose their jobs, uh Scott, but okay.
Yeah. So, we're all we're all on the same page there. So, you know, and in speaking with a lot of of my peers, we're not the only city going through this. So, we shouldn't be ashamed to have these conversations. We shouldn't shy away from them. We need to have them not just tonight, but ongoing until we can find some paths forward. So, thank you.
>> Thank you for your comment. Next comment.
Um, it's much more fun to come up get a proclamation than but I wanted to come back and I'm going to be uh I'd love to tell you I told you so. I told you so. I told but I'm not going to do that because I'm a bigger man than that. This is an education problem. No one's been willing to talk about this. This goes back decades. This is not a new problem.
This is the same problem.
I'm struck by even tonight I want to pay you a compliment mayor after the homeless access center you made a point of saying something that no one would have ever said before maybe since which is you don't expect money from the general fund don't do you I mean like let's communicate reality can we please do that and I think that's to your point it can't be one it has to be all of you you and I mean and it's not this council's fault this goes back decades right and essentially it turns out if you have almost no economic activity, the city will fail to realize the money it needs to provide services, not new services, not additional services. The services that you've had for decades. Our level of service is lower than I'd say any cities other than Stockton. Our parks don't look as good as they did. Our infrastructure is woeful. Not only not new investment, and it's because uh we haven't had any normal economic activity. I don't think that our city spends money uh wastefully or any probably better than most cities. This is an income problem, but if no one knows there's an income problem, you want to raise a rate for one and a half 2% for there's people in upper work because they don't think you need the money because none of you and and the folks going back in time, no one's ever told the truth. And the truth is that I'll give you an example. And by the way, it pains me to say, but you did an excellent job, Scott. So stay in your lane because this is where you're good.
Okay, he really did. He really spent a lot of time on and I do appreciate that.
But I'll give you an example. Back in the days, we had a great recession and then everyone came out of the recession but us. And we're struggling and our fire stations closed half the time.
We've got, you know, four cop cars on the street, not six. And it gets so bad that uh an ill- fated uh ballot measure comes and goes in 2016. and it doesn't pass. In 2018, we rally the troops, we hold our nose, and we say we can't have this condition anymore. Business community comes together, passes me. And there was an assumption, and I think a quiet agreement that the city would know, and when I say the city, I mean staff primarily, but also members of the council at the time, would no longer conduct business exactly the way they did prior to getting into that problem.
Now, that wasn't in writing, and we didn't shake hands. It was just an assumption there would be an education process because normally when you get down to that level of problems you want to correct. Nothing happened. Nothing's changed.
Nothing really meaningful. In other words, we had no industrial growth before the need for measure L.
We passed measure L. There's been no industrial growth. We've retented things which is fine.
Why did why do we think we don't need industrial growth? And as important as it is for you as a city for us to have the money to deliver the services that the people need, more importantly is their opportunity to climb up the economic ladder. That's actually more important than the services you provide.
It's the business climate. It's the that's a quality of life issue paying your bills. Dare I say it's even more important than parks because it's hard to enjoy a park when you can't you don't know where your rent's coming from or and that's where the people that you represent live on a daily basis.
Now it's true that we can't turn that overnight and there this council has been the first council to really I think address that and and try to turn the ship around and recognize that economic reality lives here in Loi too. this fantasy land that we've been living for decades that we need no changes and will somehow have the money. Well, here we are again. Now, we haven't earned the right for another sales tax increase. I don't think one would pass because nothing's changed. The building over there, nothing has changed. There's been a lot of turnover. There's opportunities for change. We're all excited for that.
But somehow those lessons of economics, basic economics, just didn't seem to permeate.
So, What's going to have to change? Well, the days of using consultants are over.
We don't can't afford them. And somehow we're going to have to do all the things that you folks have come up with and you. But if we don't change if I'll leave you with this. I've got 20 seconds.
I challenge each and every one of you to be honest with your constituents on a daily basis about the economic realities of Loi.
I'm not sure it's I don't think it's going to cost you your jobs. I hope it doesn't. But if it does, it's worth it because you're never going to get people to vote for a sales tax increase or any increase or accept lower levels of service until they know the truth. And you may have to start with your staff.
And I'm sorry we we're here again.
Right. Thank you for your comment.
Do we have anybody else who would like to say comment?
All right. See none, then I will turn Well, thank you gentlemen for showing up. I took notes. So, um, a couple overall, um, concepts. We are a full service city. Okay. There is an expectation of a certain amount of staffing departments.
Um, you know, we have our own library, we have our own fire department, we have our own electric utility. That's a very rare towns that are 68,000.
I mean, we are at the bottom of the size of full service cities in California as as I looked at it. So, we do have a challenge in that we actually even though we've had an increase of about, believe it or not, in the last um six years, we've had an increase of about 30 staff positions. So we have tried to move our city u by staffing up to meet the needs of a full service city. But Mr. Kuruba is right. We have not kept up with the economics of understanding that and what that means and the impact on things like continuing deferred maintenance in particular on our parks.
I think we all expected with the passage of Measure L um that we would see more investment in our parks, but our parks are barely afloat and Christina doesn't have enough money to hire the necessary staff. So, we're failing in that. Um, you know, I want the bad news. This is the first budget. Thank you, Janelle. I hate to say it, but thank you for the bad news because when I look at this forecast and I see 4.2, which is now maybe down to 3.9 is what you're saying um in the whole that's eating our savings. Okay. And then you look at our uh reserve accounts. Okay.
That's our savings. That's that's that's our catastrophic reserve in case we have another major disaster um such as we had with COVID. Our economic reserves just our regular savings account. And then we don't touch the measure LCAT and economic reserves. And then we into our pension stabilization. We will be out of money by fiscal year 30. Out of money because we won't have cash on hand to pay any of the debt that you have done a very good job of saying conservatively, here's where we're going. So, it is a problem that has to be solved now. And and you're absolutely right. I believe in monetizing our assets. Um I think this is something that we can talk with various departments about. We have land, we have buildings. Um, we have a great opportunity with our electric utility.
It is the gem of our city. It is also the thing that brings in economic opportunity for businesses. So, you know, with those really low rates, we probably could see higher rates that would contribute, but would it contribute to the general fund? That's the key point is how do we get more money in the general fund? So, you know, Supervisor Ding was here. They had a balanced budget. But you know what the first thing they said was? We're not raising fees. We're looking at efficiencies and operations in the department before we're raising fees.
Okay, that's a reality they can afford.
We certainly can look at efficiency in department operations, maybe integration uh of of department staffing. There's a lot of things. We get our new community development public um works director uh on board, new city manager uh and certainly working Jamie, we may be able to find more efficiencies. We do need to monetize our assets. We've got some fabulous assets. It's why we are the favorite small town. Um and to our um uh um chambers comments to JP, public private partnerships, we don't know how to do those. We need to start working in leveraging the assets that the private sector provides us. and I've heard everything from individuals like naming rights uh on parks and other facilities.
Um I'm open to anything and I think what we need to be doing is sitting down and I have no problem sitting down before the election. Okay? I'm not afraid of addressing the bad news and talking about things that are difficult to hear.
Um so once we've passed this budget, which I hope we will do tonight because we have to continue this process. Um, I think that we're going to have to sit down and do a series of special sessions and I'm happy to see one in October, you know, so we can get this started because we don't have much time. We are well past having time to deal with this and we need to do long-term issues. I'm I'm so appreciative that we got economic development that we actually got an economic development department and a director and a plan in place. That is our longterm strategy, but in the meantime, we need to look at those middle term as as Scott indicated and the shorter term. And you know, I'm not in favor of some of these things. I'm really not. But I can be convinced with economic, we need to know the numbers first. I need to know the numbers and I need to know where my community is on the issue of campus. So, I'm open to just about anything at this point. I'll hold my but I'll open to it.
>> Talk about it over a joint.
>> I I'll I'll take uh by way of wine instead. Okay, that we both agree on.
So, um so I I look forward to this discussion. I look forward to working with our private sector partners because I think that they have an a significant amount of experience, but even more an investment in this community. Just like all those taxpayers that are are funding us um have as well. So I I don't have anything to pick apart. I don't have detailed questions. I am glad we got from 4.2 to 3.9. It's still ugly. You know, I I still don't like it. And um but I do appreciate that we got the bad news because it's very hard for staff to deliver that. And I think you did an excellent job of it. And Jamie, it's now in your lap to help us through this process. So, um, that's really kind of all I've got to say.
>> Thank you so much. Uh, so I'm just going to make a quick comment. Um, so I'm very pleased with the conversation that I happened here with the the DAS because I've been asking for these kind of honest conversations to happen since Lindsay and before you because they tell us about the budget and I'm like yes, but we need to take about five years, six years. Like I just I'm not a short-term person. I'm long-term. And and for me to put on the table for me, I'm I'm for taxes. I say I'm for taxes and if it takes me my job here, okay. So be I'm never wanted to be here anyways.
I just came here because I saw that need in the community. So as long as I can help and move the city forward for other future people, I will always do that.
So, and yeah, we passed the budget now, but the real work starts after passing the budget because we need to look at efficiency. Talk about all the other options like you guys, I not saying yes or no to any of this. Just let's start having this conversations after this meeting and it's just problems to solve.
So, if we the community, the staff members, the council members, we realize that this is a problem, we'll get there.
So, and with that, I will move to more council comments.
I completely agree. Uh I think following the approval of this budget, we should get together um with a number of meetings, throw things on a dart, and then figure out which ones we actually want to pursue. Um was talking to a few members of the community right before this about the same subject. Um some of them are not going to be good-looking at all. Right. I uh had a few individuals tell me we should be looking at parking meters in downtown. I had a few individuals tell me we should signage along highways like uh digital signs, um sponsorships for parks. I mean, all these things are going to be very small, but they are going to add together. Um and again, do I think we should leave anything off the table? No, I think we should have a conversation about everything. Um so, I'm in agreement with that and we have to start somewhere and I think again following this discussion, it should be immediate. I think one of the issues that we have had um is organization and leadership right in the last two years um a lot of movement in the city manager position and really when we're talking about our 2728 budget you got to start now right you don't get to put something in the budget one month before two weeks before just because you want it so um it takes time to study these issues and to be able to pro people and our constituents and the business owners um why we're doing what we're doing. So again, I'm in full agreement and and I think we should start directly after to give ourselves ample enough time. But again, and what I would say is we should have a meeting where everyone is throwing something at the dart or throwing darts at the board and then having a conversation where we're pulling those off and saying this is the order of how we're going to take it serious and we're going to look at first. So, thank you.
>> I agree.
>> We need revenues. All right. I agree.
The expenses didn't go up, but I've been in city council down.
I was mayor at that time. I'm the most tax $9 million a year. Okay. If you do, before you do that, if you want that, you guys go out there and say make committees like that. Also, parking lot down downtown, right? Say, let's put parking lots up. You're going to have to get those property. They won't want that, right? Everything you want, it's easy to say. It's hard to do. But if you want to really put your word, go out there and sales get a committee last time you began in the city council, right? You get a committee and also it's no brainer to see the revenues, right? Parking stuff.
You can do that. Write it down and then have a committee here then say let's support this. Bring it to the council.
I think I I understand what you're saying. I I have a little different view of our budget, right?
We have reserved 2031 because because we save money that ML gives us $9 million a year, right?
Because of that the way we handle it, we have reserves in our retirement fund. So we have I differ and said we have time, but we're going to have to work together. I agree. We have to work together and you guys go out there rather come here and say do this and this and you do it yourself and That's my >> Yeah, I watch channel 3 every day when I'm sitting at home and everybody's going every local jurisdiction going through the exact process to meet their statutory gu guidelines, deadlines and they're all in a pretty awful situation. I'd argue that our situation is slightly better than a lot of our neighboring jurisdictions, but I mean the writing is on the wall that you know we certainly need to take some actions here. I won't repeat a lot of the suggestions made, but I think we are we have some ideas in mind on how to address these issues and we have the right staff coming in to potentially do so. Cara coming from Elro, they certainly know how to grow.
They've had lobbying services. They don't do And yeah, I I think there's opportunities, but I just appreciate the honest assessment. It sounds like there's the political will up here to to try and have some of these hard conversations, >> city manager.
>> Thank you, Mr. Mayor, and and members of the council. Uh just a couple of thoughts if I could as my final action here um in putting my name on it. I wish I was here sooner to help with the conversations to have those important conversations, but I commend you all for being willing and prepared to have those difficult conversations because that's what it's going to take. And um you know, I I think that you're on the right path. I commend you for you know, the entire organization.
Uh, you know, when I first got here, you hear all the turmoil that this community that this agency has been through for the past couple years, that's not easy.
And, you know, as the time that I've been here to see you step by step by step get through that, that's what's in front of you again. But, it's going to be that tenacity and that determined to and that focus. And I think you're taking steps every step of the way. Um, When I first got here, we had that conversation about revisiting your strategic plan goals. You have 46.
We whittleled it down to eight. And that's a huge step because now you can start talking and focusing on what are the priorities. Where do we need to focus and make those hard decisions of what is real and what's not? And so, um, I think there's a lot of opportunity there. Um, and so by taking those hard looks and having those hard conversations sooner than later, um, that will go a long way. And, um, just so you know, I've talked to, you know, your staff, um, along this whole process about we we need to be thinking, you know, not feeling overwhelmed. We need to have a reality check and this budget certainly does that. And I appreciate, you know, Janelle and her team putting that and presenting it. You know, that's that's what I've asked them to do is we need to tell the story. You you know, that's our job as staff is to educate and inform the council of what the real story is behind, you know, behind the scenes and the curtain and all that stuff. Um, so now you have it and but in this situation, it's real easy to get overwhelmed, but you have to have a game plan and you have to start looking at this in bite-sized chunks and saying, "Okay, what is our first priority? What and save money and, you know, find ways to make money and all that stuff. Then go to the next priority, the next priority until slowly but surely you're out of it. Um because a windfall solution, you know, I've been in this game a long time. I haven't seen it. And it's just by, you know, incrementally going after it and and attacking it. And so I think um and I see that in your staff. Okay. And and it's been a pleasure to work with team. Um, excellent work. Um, and I appreciate all the department heads and their staffs, um, for really jumping into this. You know, when I got here, it was um, you know, we we we didn't know where we were at just yet. And when we got the numbers, it was okay. Um, we're sorry, but they rallied around that and and they understood that. And they're trying to you know, the proverbial more with less, but we got to fix that model and they're on board with that and so I'm excited for you. Um, you know, I feel for you. Um, I've been in a lot of bad budget situations and but, you know, the community is behind you. I think there's real opportunities here. You're putting foundational pieces in place. Your economic development strategy, I mentioned it in, you know, our special meeting. Um, it's time to build a new economy.
you can absolutely do that but you have to be purposeful, you have to be focused and you know all aligned in doing that and it can be done. Um but you got to play to your strengths and sometimes you have to create new ones but that strategy is out there and you have you know a lot of committed people to to focusing on that. So, um, while it it's it's definitely a big hill to climb, it's not insurmountable. And I think that you're putting pieces together to help with that. And the conversation we had at the special meeting about being smart about the new growth areas. Um, growth is not the answer by itself. It has to be the right growth. in my experience I would say um because if you continue to invest in the old trends as one of your constituents mentioned um you know that's not going to fix anything that's going to add more problems 20 years down the road and so there's a real opportunity here and I'm excited for you and and I wish you all the best with that and uh I think you're putting the right pieces in place and most importantly you have the right mindset and that is let's address this head on, excuse me, and tackle it and help help us help ourselves. So, um I will just again thank all the the staff for putting all the hard work into this. I appreciate the council's u focus and you know and interest into the budget. Uh I've worked with a lot of councils on budgets and sometimes it's just whitewashed and you know glanced at and so forth and what's the bottom line? You guys can that you all care very much about this and so to the community of of Loi, I think you're in good shape that you have people that are watching out for you um and want to have those difficult conversations and make those tough decisions um to help the community, you know, maintain that award-winning, you know, reputation that you just received. So, with that, I appreciate the opportunity to work with you. I wish I had more time, but uh I'm turning it over to some good and I think you guys are going to do some good things. So, thank you for the opportunity.
>> Thank you so much for the comment. Um, do we have any more comments from council?
>> I will entertain a motion.
>> So, move to approve the 26 27 annual budget.
>> Second.
If I could all the other things that go in that motion with the G limit and all that other stuff, correct?
>> Yeah. Do you need me to read it into the record? You want to put that slide up with all of all of those things?
>> Did you just say staff's recommendation?
I think we're covered.
>> Okay. Staff's recommendation. We'll accept staff's recommendation for approval of all those items associated with of the 2627 annual budget.
>> Thank you.
>> Okay.
>> All right. And it passes. So, next item.
>> Mayor, the last item of the night is uh to discuss and provide direction to staff regarding data centers and LOI.
And I'll turn it over to uh council member Breman.
>> I'll make this quick. It's late. In regards to helping our budget, my initial proposition was for resolution against data centers in city limits and looking into the feasibility of one near Whit Slooh in the countryside.
Since then, I've gained significant clarity through engagement that this is not an option our community wants, nor from my understanding from council to look at. And I am proposing a memoratorium against data centers altogether. I've been told it's a mute point due to no companies currently applying for permits. However, I do believe in being proactive instead of reactionary. There are currently micro grid companies that are integrating into neighborhoods. A couple names are Crowley, Volta Grid. Um, so I do believe it would be a future issue for Loi's infrastructure as far as the city limits go. Um, I don't think that's something anyone wants. our sphere of influence should be for residential properties and business owners and businesses thereof.
Um so again I do hold the city limits in high regards in that sense um as well as some of the possible health effects from these data centers. So again I don't think it's something that council wanted to begin with from what I got at the last meeting and I've gotten enough feedback from the public to take a stance on it.
um leaving it to the rest of council to chime in. Thank you.
>> Just a comment that is going to be a big big project, right? So my concern my estimation is going to be costly. It might be better to uh ask NCPA if it's feasible, right?
Because you know I don't think the city can do it.
my thoughts.
We had a meeting with CPA council member was involved as well about feasibility and I don't know that we've gotten a clear answer just yet but there was some research going >> I just I want to be clear are you advocating you're advocating for no action >> so and this is the fun part with newspapers and social media so my original discussion and you can actually go back to the video of Number one, I've always been against actually putting a data center within city limits. White Slooh area was the exception of that first conversation. Um, so number one should not happen in city limits. The conversation I had at the last council meeting was trying to figure out if we should look into and have that conversation about doing one white slooh. Um, again, feedback that I've gotten, no one wants it. So my suggestion is we actually do a memor against them alto together city limits and white slooh area and I will say this much too that technology is very new okay as far as the health effects water usage all this stuff it it's in the worst situation it can be in right now I will also tell you from what I found everyone's in distrust of this stuff right now because it's new right so my suggest suggestion is we should give it some time. Um, but my other suggestion too is be proactive in the sense of don't have these guys knocking on your door. Don't have them buying up property near you because they think you're going to be open to it. Don't have them put these micro grids in your city um that are going to affect your infrastructure.
So, um, again, my suggestion is put a memoratorium on them.
>> I I don't support moratoriums. Um, frankly, you're Absolutely right on the technology changing and you know enacting moratorum and having staff go to the expense and effort to determine what's feasible what's not feasible in moratorium language means everything and I don't want to who knows you know it could be down the road these could be very small footprints and you know I just I don't like anything on any development type whatever so I think I'd rather just let the move forward in the sense that if there if we are viable, we're still waiting for research from CPA. Um, you know, we'll deal with what comes to us and at that point in time, we have every right to say no. And so I say we just good information to have, but I just would not recommend any action.
So I was not here when this discussion was happening because it wasn't easy.
But we have seen that we have real problems that we need to solve. So investing more time on this is just in my opinion a waste of time and this discussion this item and anything. So I just recommend that we table it indefinitely.
>> Right. I'm need to go to public comments. Do we have any public comments? Madame I had a uh 30-year career in tech.
Starting in the early 80s, I had data centers.
City of Loi has a data center. You put a moratorium on data centers, you have to decommission your data center.
All the bad news are 100 megawatt and larger data centers. All the bad news are poorly implemented data centers. I highly recommend no moratorum, no approval. Wait for something to happen.
Um the technology changes a lot. I've had data centers go from a million square feet to 10,000 square feet in in five years.
the size, the the power consumption, uh the cooling uh necessities, all those things change. Nobody's knocking on your door right now for a data center. I would just hold off on this particular topic and and not pass anything. Thank you.
>> Uh yeah, I completely concur on that.
I'm I'm I'm with you. I don't understand having which means we never look at it again.
That doesn't make sense. But when we're I understand not putting in the city limits, but I'm also concerned about putting it out with the Slooh because of the environmental impact. I mean, this is where we're talking about the Sandill cranes is where we're talking about other things that we really need to think about here. Um, and I also question the financial gain because the construction of these, they bring the people in to build them. They'll bring the people to run them. So, what we're going to get is a security guard and some janitors. So, I feel like we really need to look at the bigger picture before we start trying to attract data centers into our area. Thank you.
So, I'm glad that uh Council Member Bregman turned around and uh is against this bad idea. Um the Dat Center's debate um it's going to hike up residential business, electrical bills.
Um, it's going to add, I mean, for example, and and I wrote in my letter the uh letter to the editor, according to the the American Policy Center, a an they give you one example. There's a meta data center in Newton County, Georgia, it's a rural county, and they're using 500,000 gallons daily, which is turning residents, whales brown. I mean, even farmers. I looked at a uh documentary that one guy has gone around to various states, especially in W Wisconsin, and there's farmers out there saying their wells are dry. They're not getting water.
We have farmers here. You guys want to have a data center? You have farmers in the the wineries out here have no water.
And it's bad enough. We're in the drought. You know, California's been in a drought situation and so forth. Um, like the gentleman said, it's there's going to be no jobs. They only bring a skeleton crew. There's no no money in it. Um, and so you got to see um Wisconsin.
This past week, I went out to Reno. If you research it, Reno last month 61 did a moratorum on um these data centers.
And so I went to Reno, stayed the night, and I drove out to where they have their data centers. They're they're constructing these massive things. I mean, it's just but it's outside the city limits. Um but you have to ask a question.
It's Reno, Nevada, strides, desert out there. Where are they getting where they getting the water? I mean, this is ridiculous.
They're doing the same thing in Utah.
Where are they going to get the water from? I mean, Las Vegas was running out of they got no water resources. Uh, in one of the documentary, they went down to Tucson, Arizona, and they put this data center, but it was the transparency was not there. the supervisors in Tucson, which I think it's Pimon County, um they didn't even know about this project and staff was putting it on their agenda and they're like, "Wait a minute. What is this? What are we voting for?" They're putting these things in without the supervisors or even council members knowing what it is and and and signing non-disclosure agreements. The secrecy there. I mean, they don't even tell the citizens what's going on. This is the problem, folks. and and you know, Sani County, we have farms, we have, you know, the governor wants to do this delta tunnels.
He wants to divert water down to LA. I mean, what's going to do to our freshwater resources? So, that's what I'm saying is um and these data centers to say it's the key to create an AI surveillance center. I mean, it's it's t it ties down AI surveillance. Um, so I mean, but I'm glad that Mr. uh, Council Member Bregman turned turned turned around and kind of woke up on this issue. And the rest of you need to really look at this stuff. And Aaron Brochovich is really paying attention now. this this attorney that sued PG Genie uh down in you know Hickley uh which is by Bartol. So if you guys I drove down to Las Vegas and when you drive back from Las Vegas you're going to pass Bar stole and that's Hinkckley and you see a lot of abandoned homes out there that's Hinkckley that was the area that the water pollution happened and that she sued. Erin Broovich is getting um entering this an arena and she's doing a huge database because a lot of communities are are having these data centers forced. It's it's turning their their life upside down. So, thank you.
>> Good evening, council members. I'm going to see if we can get us to the 4 hour uh max. Uh uh only got five minutes, but I actually uh funny story is I I I've started my career as an advocate. I actually was on the probably the other side of the uh the aisle, so to speak, where I am today. I actually worked for an organization that was uh born out of uh the Fairchild U semiconductor manufacturing issue in Silicon Valley, which Aaron Brockovich uh was part of way back in the day. And we saw what happened with uh basically uh tech companies moving semiconductor manufacturing offshore. Uh and I worked with a lot of uh international companies that were trying to clean that industry up. And so I'm very I guess what I'm saying is I'm very sensitive to the potential impacts of uh you know technology and the impact it has on people and communities but ultimately you know uh you are the decision-making body for this community and I have the faith in you that if uh even if uh something was to come to you in sort of a surprise manner that you guys would have the wherewithal to be able to uh manage the the process of approval effectively weigh the potential impacts to the community and make a decision that's that's best for us. I I'm a chamber guy, so obviously I'm against kind of creating additional regulation and limiting us uh in terms of our economic opportunity. U so I do think that that this should be tabled. Uh I submitted a letter to council uh today saying uh such. Uh so really let's let's just uh let all of the existing regulation we have at the state and the municipal level do its job. You guys will have the opportunity to weigh in if we ever have this opportunity in front of us. Our electric utility and and staff and other people are amazing and they're going to be able to really help guide you effectively if and when this opportunity ever may arise. Thank you.
See none, I will turn it back to council. Any last comments from council?
Okay. So, yeah. So, just at the future uh please before bringing things to council, talk to your uh voters. Look that up first before bringing thing for the support.
>> I'd appreciate if you don't chastise me.
Mr. >> Please don't chastise me. Well, I'm not I'm just giving that uh that opportunity for you because see we are spending right now valuable time and deciding that you're yes. No. Yes.
>> If something can help our budget, I will bring it to the council.
>> Okay. But do your research. I'm asking you to do your research before bringing it here.
>> Well, they didn't want to do this.
That's why there's no staff report because you're wasting people's time.
>> Council approval. I I appreciate your sentiment, Mr. Mayor. It's my right as a council member.
>> Exactly. Exactly. Bring it to Okay. So, yeah. waste everybody's time. Yeah. So that's your right you have before.
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