BodyCity Council
MeetingRegular Meeting
Date📅 May 19, 2026

UnGovr Transcript

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0:02 – 0:021 turns

UnidentifiedUnidentified speaker 1Proposed2:23

Thank you.

Roll call, called by City Clerk · 1 under review
Show transcript
Welcome everyone and good evening. Thank you for being here and let's call this meeting to order of May the 19th, 2026. If we can do, if we could all stand and say the Pledge of Allegiance. Ready? Begin. Thank you. Okay, roll call? Council Member Kasdan. Council Member Kiriakou. Here. Council Member Reyes-Martin. Here. Mayor Pro Tempore Smith. Here. And Mayor Perodi. Here,
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Pledge of Allegianceceremonial · click to expand
ElectedPaula PerotteMayorProposed · by role4:55

thank you we can introduce our translator Viviana.

UnidentifiedUnidentified speaker 2Proposed5:01

Buenas noches tenemos interpretación al español disponible si alguien prefiere aquí tengo auriculares good evening we have interpretation into Spanish available if anybody prefers I have headsets over here thank you gracias

ElectedPaula PerotteMayorProposed · by role5:16

Thank you so much. Okay, Mr. Rosen, a report from closed session?

UnidentifiedUnidentified speaker 3Proposed5:21

Thank you Mayor. So for the three closed session items that were read into the agenda at 430 there is no reportable action on any of those items.

ElectedPaula PerotteMayorProposed · by role5:31

At this time we'll

Agenda Discussionitems moved / continued / pulled, click to expand
ElectedPaula PerotteMayorProposed · by role5:31

have public forum anyone that wishes to speak to anything that's not on the agenda this evening

UnidentifiedCity ClerkProposed · by role5:39

Yes, thank you Mayor. I have received five speaker slips and for those on the Zoom webinar if you wish to speak to general public forum please use the raised hand feature and I will call upon you our first in-person speaker is Andrew Chafos followed by Mrs. Bee and you'll have three minutes thank you

CommentAndrew ChafosProposedself-stated5:56

Thank you. Hello, my name is Andrew Chafos and I'm a renter in Goleta. I'm here today to encourage Goleta City Council to start working on a rent stabilization program that's analogous to that of Santa Barbara. I wanted to start by thanking Goleta City Council for its commitment to the Goleta community and adopting past measures with haste following comments from a large base of community support. My understanding was that this was the case with both a rent eviction measure as well as a measure providing I'm a tech worker that makes a good salary but because of the high rents in my complex, I'll probably have to move at the end of the year.

And especially will be the case if rent stabilization isn't adopted. And I personally am lucky, my neighbor in the same complex was a teacher and about a year ago she actually had to move out because she was priced out. Because over the course of a year they raised rents the max legal amounts so she got priced out like many others in Goleta and Santa Barbara have.

So if rent stabilization had been there for her, it's likely we would have been able to retain a teacher to keep teaching bright young minds in Goleta. Thank you for your time and I hope you'll consider swiftly creating a plan and implementing rent stabilization soon that's just as strong if not stronger than that of Santa Barbara. Thank you.

ElectedPaula PerotteMayorProposed · by role7:27

Thank you.

UnidentifiedCity ClerkProposed · by role7:27

Okay thank you our next speaker is Mrs. B followed by Christina Silvers

UnidentifiedUnidentified speaker 4Proposed7:37

Good evening everyone. Honorable Mayor and members of the City Council, my name is Mrs. Bee and I'm a proud Galetan and I want to thank you for your ongoing work to create affordable housing as we move forward I respectfully ask that you actively support and advance rent stabilization to protect vulnerable tenants. I understand we are in a wait-and-see pattern regarding the City of Santa Barbara's ordinances and lawsuits, but we want to have active conversations about tenant stability here in Goleta in the interim.

My second point, employee recognition. Secondly I'd like to recognize a dedicated city employee who has gone above and beyond the call of duty to reduce the homeless population in our city. Chuck Flax, Chuck's tireless efforts on the ground are truly making a difference. Is there a process or a proclamation form that a constituent can fill out to formally nominate him with special recognition?

If so, please let me know what the next steps are so that we can celebrate his outstanding work. And lastly, tenant union expansion. Finally I take great pride in our recent efforts to expand the Santa Barbara Tenants Union SBTU. SBT Union, we have a Galetta chapter with the ultimate goal of expanding countywide. We want to schedule a meeting with Councilmember Reyes-Martin to discuss our community concerns and our desire to be placed on a future council agenda I will follow up with Councilmember Reyes-Martín directly to coordinate this effort Thank you for your time, consideration and continued service to our fine community. Thank you.

CommentCressida SilversProposedself-stated10:06

Mayor and Councilmembers, for the opportunity to speak with you this evening. My name is Cressida Silvers. My husband and I have been raising our family here in the Goleta community for almost 20 years. And even though we ourselves are no longer renters, our family very much feels the effects of the crushing housing situation here and the lack of renter's protections because instability for renters means instability for the entire community We are all impacted by the constant churn of neighbors, friends, classmates, office mates, businesses and service providers being forced to relocate taking with them the connections, the institutional and the communal memories that help our community thrive.

So please move forward with a rent stabilization ordinance. Thank you. Thank you.

UnidentifiedCity ClerkProposed · by role10:58

Speaking next Mary Michael followed by Joanna Romo

CommentMary MichaelProposedself-stated11:07

Hi, my name is Mary Michael and I'm a grad student at UCSB. I'm also a renter and I'm also asking for a rent stabilization ordinance and for tenant protections. Eight years ago, I moved here from LA with a healthy savings account that I had built up from working several jobs and living pretty cheaply in the city. I came here excited to start on my doctorate and to build a community and make new friends in a place that I'd never lived in before.

Now, my savings account has been reduced by more than half and I now work three jobs instead of the one just to stay on top of rent and the cost of living here. I've put in a lot of effort into building community and creating new friendships and while that's been fun those efforts have been severely undermined by the fact that it's too expensive to live here no one can afford to stay here for too long and it's just hard to build something long-lasting here Now, I'm looking for a full-time job because I want to give back to the communities and the organizations that have really sustained me and helped me grow here.

But I keep finding job postings that are willing to pay only $27 to $29 an hour, and that's just not enough to pay for rent and the cost of living here. I actually can't afford to give back to my community, and that's crushing. I know that this place is like magical and beautiful, and it's like next to the beach. And that's part of the draw here but all of these experiences of just trying to give back and build something meaningful while also trying to keep up with all of the costs. It makes living here more than frustrating but I'd even say borderline miserable.

And as council members, I'm sure that's not what you wanna hear. But it also doesn't have to be that way You can show that you care about residents like myself who want to give back to this community, who want to be more than transient, who will show up to a City Council meeting after 5 p.m., and you can do that by implementing tenant protections and rent stabilization. You can show that you care about our quality of life and that you care about us building this place into the joyful and vibrant place it can really be. Thank you.

UnidentifiedCity ClerkProposed · by role13:28

Speaking next, Joanna Romo followed by Libertad Kadatz on Zoom. Thank you.

PresenterJoanna RomoincreasingProposedself-stated13:35

Good evening, Mayor and Councilmembers. My name is Joanna Romo and I'm a resident of the unincorporated area of the City of Santa Barbara. I'm here today because like many tenants, I've been struggling with the increasing cost of housing and the fear of displacement. I recently learned about the rent freeze protections that tenants in the City of Santa Barbara currently have and I also learned that the Santa Barbara City Council is actively working on a rent stabilization ordinance Hearing that was both encouraging and frustrating. Encouraging because it shows that local government can't take action to protect tenants, and frustrating because renters in Goleta and the unincorporated areas are facing many of the same housing pressures without those same protections.

The reality is that many renters are paying unsustainable portions of their income just to remain housed. Families, students, seniors and working people are being pushed further and further out of the communities where they work and live. Housing instability is no longer a future concern it is happening right now. The good news is that Goleta does not need to recreate the wheel. Models and policy discussions already exist nearby. Santa Barbara is already doing the work of studying tenant protections and rent stabilization, and Goleta has an opportunity to learn from that process and build even stronger protections tailored to this community's needs.

I'm asking the Council to begin seriously discussing tenant protections, including rent stabilization, protections against unfair evictions and policies that help keep long-term residents in their homes. Renters are organizing because we want to be part of the solution and because we believe housing stability is essential for a healthy and sustainable community.

We love this area. We work

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0:15 – 0:2621 turns

PresenterJoanna RomoincreasingProposedself-stated15:31

here, raise families here and contribute to the local economy. We simply want the ability to remain in the communities we help sustain. I urge the council to place tenant protections and rent stabilization on a future agenda and begin engaging directly with tenants on these issues. Thank you for your time. Thank you.

UnidentifiedCity ClerkProposed · by role15:54

And Madam Mayor have no further public speakers for public forum?

ElectedPaula PerotteMayorProposed · by role16:00

And I will close the public comments at this time, public forum and move on to amendments or adjustments.

UnidentifiedUnidentified speaker 3Proposed16:10

Thank you, Mayor. This evening, Mayor and Council, we do have one note for the council's consideration this evening. Staff has posted a notice of recommended continuance on public hearing for item C2. And so staff's recommendation is that the City Council open and continue the public hearing regarding the 2026 Development Impact Fee Program update to a date certain of July 21st, 2026. So as reflected in that posted notice if the council votes to continue the item this evening there would be no substantive consideration anticipated by the city.

That said the city may still receive public comment associated with the proposed continuance for purposes of the administrative record and in that case staff would note any public comments received as part of that continued public hearing process.

ElectedPaula PerotteMayorProposed · by role16:59

Okay, thank you. So we need to take a vote on that?

UnidentifiedUnidentified speaker 3Proposed17:02

Correct and I would recommend Mayor we would ask our clerk to just confirm whether any speakers wanna speak about the proposed continuance of item C2 and then for the council to then consider a vote.

ElectedPaula PerotteMayorProposed · by role17:16

Okay, thank you.

UnidentifiedCity ClerkProposed · by role17:19

Thank you Madam Mayor. I've not received any speaker slips for C2 and if any attendees on the webinar wish to speak to items C2 please use the raised hand feature and I will call upon you. Madam Mayor and Council, I'm seeing none.

ElectedPaula PerotteMayorProposed · by role17:38

Okay, now we'll take a vote. Somebody like to make the motion? Yeah,

PresenterJaime ValdezProposed · by introduction17:43

I'll make a motion that we continue it until that July date.

ElectedPaula PerotteMayorProposed · by role17:48

Okay. July 26th. I'll second. 21st. July 21st! 21st, so sorry, 21st... I'll second. A roll call vote?

Roll-call vote Passed 5–0 motion that we continue it until that July date. Okay. July 26th. I'll second. 21st. July 21st! 21st, so sorry, 21st... I'll second. A roll
Show transcript
Yes thank you. Council Member Kasdan. Aye Council Member Kiriakou. Aye. Council Member Raes-Martin. Aye. Mayor Pro Tempore Smith. Yes. And Mayor Parodi. Aye,

okay the ayes have it. All right thank you. Okay moving on to... Are you ready for me? Yes I am ready for you.

UnidentifiedUnidentified speaker 5Proposed18:22

Thank You Madam Mayor this is the City Manager's report and I do have a few items so I'll go through those First I want to acknowledge the Supervisor and Management Academy that the City has been a part of now for, I think going on three years. Just as a reminder our Human Resources Manager I see here Jennifer Jennings was at the beginning of establishing this program it's a collaboration with Santa Barbara County, the city of Santa Barbara, the city of Carpinteria and I believe now also North County cities are also starting to contribute because I think they saw How cool the program is and it's just a great opportunity for up-and-coming supervisors, managers and execs to get a really great training. So there are three academies. There is the supervisor academy, there is the manager's academy and there is the executive academy.

And I think we now have had 12 employees go through one of those. And we just most recently had two graduates from the Supervisor Academy, so one of our deputy city clerks who I see over here David Kataya and also Kim Crail from the library I can't see if she's here, maybe not. So they both graduated earlier this week last week. It was a great event to go through graduation with them some of us were there and I just wanted to acknowledge both of them and what a great program that is.

ElectedPaula PerotteMayorProposed · by role19:46

Oh

UnidentifiedUnidentified speaker 5Proposed19:52

look at that okay so you don't have to take my word for it it was a great graduation

PresenterJaime ValdezProposed · by introduction19:57

They're smiling.

UnidentifiedUnidentified speaker 5Proposed19:58

Yes they were happy to be done and again that was I think there's probably 30 people in the cohort David does that sound right? And there were you know people from Santa Barbara County, Santa Barbara City, Carpinteria and I think there was even a North County city person in there as well so just a great opportunity for them next I want to just acknowledge bike-to-work day happened last Thursday And so we did have a little event here and we beat our record last year. We had seven employees bike to work and we were going to beat that record. We had nine this year.

Yes I think we would have had a 10th but I heard That she tried to take her bike on the train and for some reason they weren't taking bikes that day. I'll get to that in a second, but it was very successful. There was also a bike-to-work event going on at the university at the same time and we did have Margie Kern grace us with her presence. She hit both the UCSB event then came over to our event so it's really nice to see folks biking to work. I don't know if we have a photo of that? We don't? Nope okay.

Next up and related to that under the umbrella of alternative transportation, I just wanted to get a plug in for the new train service. So this started two weeks ago so there are now six trains that go each direction northbound and southbound. They certainly go between Goleta and Ventura, but they go beyond that as well. And some of them go different distances. But the main point was to add a train at a time that was more conducive to people commuting, especially from Carpinteria and Ventura to businesses in Goleta.

That started two weeks ago, been a lot that has gone into that. Mayor, of course you've been following that all along and have participated in some of the decision making that got us here But several employees have given it a try. We do have employees who live in Ventura, we have employees that live in Carpinteria. Jen Jennings dropped her name again she took it twice last week she seems to be a happy customer I live in Santa Barbara and I usually drive to work but I sometimes bike to work but I did decide to try it so I'll just quickly give my experience.

I rode my bike from my house on the west side down to Santa Barbara train station It was scheduled to leave at 7 59. I had to make the reservation online no problem bike free, I got there and that train left at 759 if I got there at eight, I would have missed the train so the trains are leaving on time. I got here at 812. Disembarked, rode my bike over. No problem. There apparently is also a shuttle running so you get off the train. Jen jumps on the shuttle. The shuttle takes her pretty much right over to City Hall.

So it's working great. There's two options to go back the other way there's one that leaves at 425. Pretty good if you want to get a jump on your day Got a lot of work done, you leave an hour early. Pick up the kids get dinner your home in Ventura before 530 if you have to work late there is an option at 638 so the times are really good and I just think it's a great option when I got off the train here in Goleta I think more than 30 people got off that train so people are giving it a try for sure

PresenterJaime ValdezProposed · by introduction23:36

So is it four in the morning and then two in the evening? You said there was

UnidentifiedUnidentified speaker 5Proposed23:40

six. Yes, I didn't list the other times but they are throughout the day. There's another northbound train at 10, there's one at 12, there's one at 2, there is one at 6, there is one at 10 so that's throughout the day. Six coming, six going. Yes. Oh that's great. I just listed the ones that are best for a Goleta commuter But then the other direction, they're all throughout the day as well. All that's online and if you live in Ventura they're providing 10 free passes right now just to kind of get it going so if you live in Ventura you get ten free passes. So I wanted to get the plug-in for that try the train a couple events coming up busy week and you're gonna have a proclamation mayor here in a few minutes for public works week but it's already started Tomorrow, Wednesday May 20th from four to six over at Camino Real Marketplace.

There's going to be activities over there commemorating Public Works Week big trucks kids love the big trucks interactive games chance to meet public work professionals partner agencies so always a nice event again Public Works Week we'll have a proclamation here in a minute but the event is tomorrow at Camino Real Marketplace 4-6 Thursday have to announce it again.

May 21st 3 o'clock the splash pad grand opening I'm reading here that it's labeled as a splash tastic event

UnidentifiedUnidentified speaker 6Proposed25:06

from

UnidentifiedUnidentified speaker 5Proposed25:08

Kelly Hoover as we cut the ribbon for our long awaited splash pad at Johnny D Wallace neighborhood park parking is limited so get there early carpool bike. I'm not sure of the train shuttle goes there so I would not encourage that But there will be free snow cones for the first 50 attendees. So you get a snow cone and you get to get wet in these. And then finally, Blake Markham is here.

We wanted to get a lot of activity going on with the upcoming World Cup so the council might recall there was a big splurge when we had to sign a contract and get the Austrian team and there was a lot of work that went into that and then for maybe a lot of you kind of went silent but it has not gone silent I know the mayor participated on a call that of course you could speak to if But we assigned Blake to be our lead. And so he has been part of the hosting committee and meeting with some of our partners to just do the best we can, you know, have fun and enjoy the World Cup why it's here. So with that, Blake, I'll turn it over to you. He has a short presentation he'd like to share with the council in the community.

0:26 – 0:327 turns

UnidentifiedUnidentified speaker 7Proposed26:21

Good evening, Mayor and Council Members. Blake Markham from our City Manager's Office as Mr. Nisbet mentioned here to share some exciting information about upcoming community activation events all related to the World Cup which will be taking place this June and July. So first of all, just a little bit on the World Cup. As we all know this is the largest sporting event in the world. It's a very exciting thing and for the first time in over three decades it's going to be taking place in North America in venues across the United States Mexico and Canada There will be visitors coming to California from all over the world to catch games in Los Angeles and the Bay Area.

So there's going to be a lot of travelers in the area, including in Goleta. And our residents are gonna be fired up rooting for their own teams seeing how they do. And they'll be looking for places to join in the World Cup fun right here in Goleta. Also, we're very excited here in Goleta in particular because we're hosting Team Austria. They're going to be staying here and practicing at UCSB's Harder Stadium throughout the competition so that just adds a little bit of a local element to this global event. And as Robert mentioned back in January the council committed funds to cover our law enforcement obligations as a team base camp host city and have some community activation events. So there's an overview on the screen right now, but I'm going to go into some of the things that are coming up right here in Goleta for the World Cup.

So, last week in collaboration with Visit Santa Barbara we put on a Lunch and Learn for our local Goleta businesses. This took place over across the freeway at Captain Fatty's. And Visit Santa Barbara's team led by Kat Lopez their sales manager and Beth Olson Shared info for businesses on how they can capitalize on the World Cup. Have special events, watch parties, offer specials, World Cup trivia nights, all that kind of stuff to really take advantage of this Once in a lifetime event and make sure that people are coming out to their business to celebrate.

We had over 40 businesses represented, and I wasn't able to attend but I understand it was a great event. The session was offered in both English and Spanish courtesy of Voices Translation, and we're very grateful to Visit Santa Barbara for helping us put that on and have a good turnout so very cool thing. Next up, as I mentioned Team Austria is going to be staying here during the competition.

During June we're going to be putting up some light post banners throughout the city to welcome them and just make their stay a little bit more special. We are also going to be spotlighting them in our press releases in the Monarch Press, so here's a little taste of that here on the screen. Sharing their name, some chants and stuff like that as you can see on the light post banner we tell them to let's go lads which I will not chance the German, but that's something that their fans say when they're playing. So we're really excited that they're here. We hope that they do well. They're currently ranked 24th and I think that they have a good shot to make it pretty deep into the competition so we'll be eyeing that with interest.

On June 5th, over at Harder Stadium, UCSB will be hosting a community training session. This is part of the Hosting Authority's obligation under that contract that was signed back in January. So this is a community event It's going to be open to the public with free tickets rolled out to specific groups. So we've been collaborating with UCSB to help make that happen, and they'll be inviting local soccer clubs including AYSO, UNICO, Legends Football.

Santa Barbara Soccer Club and others to the event. We think you'll be really great. I don't off the top of my head know exact numbers, but I think that there's something like 2500 spots available. And those will be shared amongst the various groups. It's an opportunity for attendees to get to see Team Austria in action up close before they move on to the first stage of the competition. So a really cool thing there.

ElectedPaula PerotteMayorProposed · by role31:26

Council Member Carraco, did you have a quick question?

UnidentifiedUnidentified speaker 8Proposed31:28

I did. Maybe it's more of a request. Would it be possible to work with Kelly Hoover and her team to see if we could get some signage out about the community training session? I know there are so many different events and the watch parties at the community center looks really cool but I think particularly in Old Town, I think it would be incredibly meaningful if there were some A-frame signs that really spotlighted this as a way Thank you.

If possible, that would be great.

UnidentifiedUnidentified speaker 7Proposed32:03

Yes, thank you Councilmember Kuriakow.

PresenterJaime ValdezProposed · by introduction32:05

Yeah where do we pick up our free tickets for the event?

UnidentifiedUnidentified speaker 7Proposed32:09

So UCSB is currently working on getting those distributed and they'll have more info rolling out as the event arrives.

ElectedPaula PerotteMayorProposed · by role32:19

Only the mayor gets to go.

0:32 – 0:4312 turns

UnidentifiedUnidentified speaker 7Proposed32:33

Next up, throughout June and July as a way to kind of spread the World Cup excitement and get people to engage with our play aspect of Live, Work & Play, we're going to be running Go play on Goleta, Summer Scavenger Hunt. We'll be distributing information about this at some of our World Cup-themed events. Basically the premise is that you'll take a little soccer ball cutout that says Live Work Play on it and you'll take selfies around the city based on prompts of places that you like to go and play, like your favorite park or your favorite summertime activity.

They'll turn those in and then they get a prize at the end And more info on that will be handed out at all of our World Cup themed events. We hope that helps people come out to those and participate. Speaking of, on June 12th we will be hosting a watch party over at the community center. So this is going to be a free event. The World Cup starts on June 11th and so we want to kick off the festivities with Team USA's first game against Team Paraguay.

That will be at 6pm kickoff so doors will open at 5.30pm. We'll have a live stream of the game in the auditorium, along with family-friendly activities and free food from a local food truck vendor while supplies last. So we hope people show up and attend. We are already advertising this through all our various venues, and we hope that people come out.

ElectedPaula PerotteMayorProposed · by role34:27

I

UnidentifiedCity ManagerProposed · by role34:28

can wait until you're done. I think we're all excited.

UnidentifiedUnidentified speaker 7Proposed34:37

If you missed that first watch party, we'll have the Meet Me in Old Town events on June 17th and 24th to tie these into the World Cup. We're working with the South Coast Chamber of Commerce To put these on, they're going to be block party style events once again. It will be held at the Community West Bank parking lot and on Pine Avenue right there. Activities are going to include tables from local vendors, live music and we'll also be playing live streams of the games that are happening concurrently so that's Uzbekistan versus Colombia for the first one.

And then Team Mexico versus a team that is yet to be determined by the competition. So again, just another opportunity for folks to come out and enjoy the block party atmosphere in Old Town. Catch a live stream of the game and then head off and enjoy Old Town on their own! Finally, we're planning another tentative watch party. We're eyeing potentially doing it for the World Cup Final which is on the 19th of July and we'd host that once again at the GCC.

We're not sure if that will be the one that people are most excited about. Obviously, the final is like the biggest one but we may shoot for one of the semifinals depending on how things shake out with the teams. So we're keeping it a little loose right now and we'll get more details on that as things get finalized. And with that, that concludes my presentation. Is there

ElectedPaula PerotteMayorProposed · by role36:18

anything else? Thank you. It's exciting. Council Member Reyes-Martin.

UnidentifiedCity ManagerProposed · by role36:22

Thank you. Well, that is the best part of the whole agenda tonight. Thank you so much. That's really exciting. One quick comment before, well I guess both are comments. I don't know if we had reported out before but the team Austria when they came a few weeks ago now to do their tour visit, I had the chance to meet with them and just kind of welcome them to Goleta. They could not be more excited to get to train here and be here for this part. I mean I couldn't believe how Grateful they were, how excited they were to be here. The whole time I spent with them they talked about how friendly our community was, how welcoming.

They were truly blown away so I'm really glad that we'll continue that hospitality with them and it was really nice to get to meet them when they were here. And I'm going to echo Councilmember Kiriakou's comment about getting the word out on that community training session. There are so many kids in our community that are soccer or football loving kids who are not part of a club, so making sure that they know about it and have the opportunity to participate would also be just really really fun and fantastic.

ElectedPaula PerotteMayorProposed · by role37:45

I'm excited. Thank you. promised or hoped to promise to the community that there would be a watch, a day where they could watch them train. And they've come through on promises that they've committed to and they are. They're incredible wonderful people to work with. They're friendly. They're professional and they have a good feeling about Goleta and I really look forward to all the events. It's going to be really fun. Okay thank you for that.

Are you done with all your reporting? I am, Madam Mayor. Thank you for that. I will say one quick thing. The mayor's ride was on, what day was that? I had it in my calendar. It was like the week before bike to work day but And the three mayors participated. It was Mayor from Carpinteria, City Santa Barbara and Goleta myself. And we had a ride along the new MoDoc path and then into Santa Barbara and some side streets that really are promoting bicycle safety in the city of Santa Barbara and it was very well attended. It was really fun and the mayors had to sit, well they didn't have to but they chose to sit in the rickshaws where somebody's pedaling us and the woman that was with me older woman she was maybe in her 80s 90s She was so full of stories and it was just such an incredible event.

The business is called Cycling Without Age, and they provide this service to seniors in our community to get them out into the area on a rickshaw. So it's just a plug-in for them that was just a wonderful experience and a lot of fun. Thank you. Okay, so moving on to our consent calendar.

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UnidentifiedCity ClerkProposed · by role40:04

Yes thank you Mayor. That takes us to item A1 Approval of the City Council Meeting Minutes of May 5th 2026. A2 Fiscal Year 2025-26 Third Quarter Financial Review. A3 Short Term Vacation Rental Ordinance Amendments. Conduct second reading by title only and adopt ordinance 26 next in line entitled In Ordinance of the City Council of the city of Goleta California Amending Chapter 5.08, short-term vacation rentals of the Goleta Municipal Code and finding the amendments to be statutorily exempt from the California Environmental Quality Act under CEQA Guidelines 15060, 15061 and 15378 case number 25-0006-ORD.

Item A4, Amendment Number 7 to Professional Design Services Agreement with Flowers & Associates Inc for Capital Improvements at the Goleta Community Center. Item A5, Public Works Professional Services Amendments with UCSB, Rincon Consultants Inc., Dewberry Engineers Inc., Mark Thomas & Company Inc. and Authorized Budget Appropriation. Item A6, Resolution Adopting a List of Projects for Fiscal Year 2026 and 2027 Funded by Senate Bill 1, the Road Repair and Accountability Act.

Item A7, Public Works Professional Services Amendments with DKS Associates Inc. and MNS Engineers Inc. And A8, proposed capital improvement program grant opportunities.

ElectedPaula PerotteMayorProposed · by role41:27

Thank you. Council wish to pull any item from

UnidentifiedUnidentified speaker 8Proposed41:30

consent? A3 just for a comment.

ElectedPaula PerotteMayorProposed · by role41:34

A3 okay. Any other items? Okay I'd like to make your comments and we'll make a motion. Oh sure.

UnidentifiedUnidentified speaker 8Proposed41:43

I just want to acknowledge that both right Like the day of the hearing and then subsequent days I received some really, I think all of us received some really thoughtful comment letters that were talking about short-term rentals and providing some scenarios and some examples that you don't always think of. And I just really wanted to appreciate Those letters and just acknowledge that yes, while the issue of how to best preserve our housing stock and make sure we're meeting our community's housing needs is an important conversation to have. An important thing to strive for and achieve.

I do appreciate having acknowledged for me that there are some nuances to it. That it's not just a simple issue. There's not really a one size fit all approach to this issue And while I'm not planning on making a motion today to try and undo the years of work that went into crafting what we adopted, I do want people to know that I'm going to be thinking about those comments and thinking about some of those suggestions.

As we start to go towards implementation, I'm going to be watching very closely and thinking about some of these experiences and some of these stories and thinking very carefully about those. And requesting updates from staff on how things are going with implementation. You know, and from my perspective if it needs to be adjusted down the road that's something I'd be very open to. So I just wanted to make sure I acknowledged that while we got some of these comments like right at the deadline, the day of the meeting or a little bit after, I didn't want people to think that they weren't reviewed, they weren't seen, they weren't listened to and they were very much appreciated. Thank you.

0:43 – 0:509 turns

ElectedPaula PerotteMayorProposed · by role43:41

Okay, any speakers for any of the items?

UnidentifiedCity ClerkProposed · by role43:44

Yes thank you Madam Mayor. I've received three speaker slips for item A3 and we do have one speaker on the Zoom webinar, two in fact. Speaking first I'll have Michael Becchio and you'll have three minutes.

ElectedPaula PerotteMayorProposed · by role43:57

Could you read the item so people know what they're speaking

UnidentifiedCity ClerkProposed · by role43:59

to? Yes of course that is item A 3 short-term vacation rental ordinance amendments.

UnidentifiedUnidentified speaker 9Proposed44:10

Good evening, Mayor Parodi and council members. Thank you Council Member Kiriakou for what you just acknowledged. I do understand this is the second reading on item A3 and just to be clear, I'm not here asking this council to start over by any means. I'm simply asking you to consider one narrow refinement or a brief postponement for further refinement before final adoption.

I absolutely agree with the city's broader goals around protecting housing, preventing speculative or corporate overconversion of residential homes, enforcement against illegal operators and preserving neighborhood quality of life. And I want you to hear that I love this city and I too want its best. Those are important goals, all of these and I support them.

But I also want to respectfully ask the council not to let the urgency around this issue erase discernment or inadvertently flatten the nuance. The handful of already licensed taxpaying accountable operators currently working within the city's framework are not the primary issue that council is trying to solve. The city's own numbers have suggested that legal STRs represent well under 1% of Goleta's housing stock.

These operators are visible, regulated, compliant and already known to the city. They followed the city's processes from the beginning Thank you very much. I believe GLETA can absolutely move forward with stronger protections on future STR growth, enforcement against illegal operators and safeguards against speculative conversion while still preserving a very small tightly regulated and accountable legacy category for the handful of lawful operators already in good standing.

Hotels and inns meet many important needs but not all of them. There's families visiting UCSB students, people for medical procedures visiting temporary workers, visiting relatives etc. They often rely on the unique kind of lodging that a small supply of lawful short-term rentals provides and I truly believe it is in Goleta's best interest not only to protect housing But to also preserve a very limited and carefully regulated supply of lawful, full-time short term rentals that continue serving legitimate community and visitor needs.

and not unilaterally restrict this small handful to the 120-day limitation. I respectfully ask the Council to please consider preserving a narrow and accountable legacy category for these handful of existing operators in good standing, or to briefly postpone final adoption so these distinctions can be more carefully considered. Thank you very much for your time.

not transcribed≈19s of audible speech the AI couldn’t make out▸ listen
UnidentifiedCity ClerkProposed · by role47:13

Thank you. Speaking next, Idris followed by Daniel Zia. You'll have three minutes. Thank you.

CommentIdris HeppProposedself-stated47:24

Good evening. And it is nuanced for sure. My name is Idris Hepp and I'm a member of the board of directors of Eastport Village Homeowners Association, a nine unit residential condominium community here in Goleta. My written comment letter has been submitted into the record. I want to use my time tonight to speak about what we stand on in this ordinance and to ask for something it does not currently address.

We want to be transparent, we support the direction of this ordinance. These are meaningful steps but none of them address our situation. We are here to ask for something separate and complementary that closes a gap this ordinance leaves open. For several years, one owner in our HOA has been operating a short-term rental in direct violation of our CC&Rs which clearly prohibit rentals of less than 30 days.

They were notified and they continued. We posted physical notices on our common property and they continued. When we discovered that they had obtained a city business license We contacted the City and learned something troubling. They were required to notify their neighbors before a license could be granted. They told the City they had done so, they had not. Not one owner or resident in our HOA received any such notice.

When we reported this to the City, we were told enforcement was our problem. For a 9-unit HOA that means litigation costs that could consume significant portion of our annual budget, money that should go to maintaining our shared property. This ordinance as written does not change any of that. They are individual, not corporation. They may well stay under 120 nights.

This three-strike provision tracks city violations, not CC&R violations. The notification gap that allowed this license to be issued in the first place remains open. Our CC&RS are a binding private contract. Every owner in our HOA including the one at issue agreed to those terms when they purchased their home. When the city issues them a license, it doesn't legally override the CC&Rs. But it gives them a city-sanctioned credential to make our positions harder.

This costs the city almost nothing to implement. It simply ensures the city is not issuing a business license that enables someone to breach a legal agreement. Please require the STR license applicants to certify in writing that operating a short-term rental does not violate the HOA's CCNRs or governing documents, and establish that a documented written violation notice from an HOA board is grounds for license review, suspension, or renewal. Thank you.

ElectedPaula PerotteMayorProposed · by role49:58

Thank you.

UnidentifiedCity ClerkProposed · by role50:00

Thank you. Speaking next, Daniel Zia followed by Libertad Kadatz on Zoom.

0:50 – 0:555 turns

CommentDaniel ZiaProposedself-stated50:10

Good evening, thank you so much council members. First of all for your sacrifice, your time, your intentionality in putting together this really important ordinance. For those who don't know me my name is Daniel Zia I own a real estate team here in town and we've helped over 1200 people buy and sell homes and many of those in Goleta. So you can imagine we've had literally thousands and thousands of conversation about property ownership and all a lot of these nuanced issues about long-term rentals and short-term rentals both. So my context today has been shared from that perspective In addition, my wife and I own a short-term rental here in Goleta. We are not a large corporation we have spent hundreds of thousands of dollars of our own savings saved up over many years and countless amount of times to develop a meaningful alternative for short-term rental housing and it is much appreciated by our neighborhood.

We are one of the top rated Airbnbs. We have never had a single noise complaint. We employ numerous individuals residents here in Goleta including youth that are learning Good business skills and standards of cleanliness and operating that are just important life skills for them personally. My request is that you would either extend the vote and defer the vote or you'd consider some strategic amendments to the current policies The first would be, as it's been shared here this evening that you would consider a legacy grandfathered in provision where those of us good operators that have been operating with integrity abiding by all of the city's policies and that made decisions that affect our financial future years ago based on these policies.

That we wouldn't be penalized for being those that are following the rules and operating in good standing. That we'd be rewarded for that and that would be honored I would also ask that you would consider deferring the 120 day limit cap. Again, there is a specific use case and an importance to our community to have full-time operators that are providing this valuable service to our community that don't have the noise complaints and we already have those provisions built into your short term rental policy adjustments. Those are important i think they should be there especially the three strike rule there The other thing that I would recommend considering is that the provision that doesn't allow for a short-term rental to be owned in an LLC.

While that might be well intentioned, I think that has a limited view. As a property owner my short term rental is in an LLC it's not a sign that I'm a corporation it's not a sign of any nefarious intent It is simply a reflection of sound business principle and advice from my legal counsel, from my CPA. And other owners like us shouldn't be penalized for wanting that form of ownership. It's not reflective of our use there.

As you can imagine being in real estate I have dozens and dozens of examples like for example in the city of Santa Barbara We're well-meaning people made decisions and then the policy was changed. And I can't tell you how many horror stories of people that have lost literally hundreds of thousands of dollars when the policy was changed on them retroactively, and the majority of those individuals are over 55 and they're not who you think they are and they've wanted to be close to friends and family members and that was their intention to pursue short term rentals. So thank you so much for your time and consideration. Thank you

UnidentifiedCity ClerkProposed · by role53:21

Okay our last two speakers on zoom are Libertad Cadatz followed by Matthew Cadatz. Libertat you'll have three minutes and please remember to unmute yourself, thank you.

CommentLibertade CadatzProposedself-stated53:30

Good evening my name is Libertade Cadatz and I am a community member and licensed short-term rental owner here in Goleta. I want the council to know who i am. I'm a wife and mother of two children. I have spent over a decade volunteering in this community working with several local organizations and I've had the privilege of working alongside some of you on that advocacy work I have been involved in my children's school PTA as well as the school side council. This is a community where our family has grown, where our babies took their first steps in this very home. Our friends here have become family. Goleta is not a market to us it is home we left because of a tragedy in our family not by choice and not forever. Our hope is to stay connected to this community we love and to come back in time.

This home is how we hold on to that I understand the fears driving this ordinance. I've heard the concerns that short-term rentals are removing homes from the long-term rental market and making it harder for working families and community members to find housing here. Those concerns are very real, and they deserve a real response but i'd ask the council to look carefully at which properties are actually driving that problem because ours is not one of them. We are not absentee investors. My husband works at Upfolio headquartered right here in Goleta We use our home throughout the year. If the 129 cap passes, we will not convert to a long-term lease. We can't because we still need access to our home. It will simply sit empty, no family house, no housing supply gained.

The ordinance's core goal would not be achieved with our property and what Goleta would lose is real. Our home hosts families, visiting students enrolled in our local schools. Parents and grandparents who wanted the space and ease of a home to be near their family members who live here. Visitors who eat at our restaurants and invest in our local economy. These are not strangers extracting from our community they are guests who come because of it so my ask today is specific please consider amending this ordinance to grandfathering properties that already hold valid short-term rental licenses we operated in good faith within the rules as responsible members of this community And maybe a grandfather clause would target the true source of the house concern.

New investor-owned short term rentals were protecting the community connected licensed homeowners who have been serving Goleta well. Thank you.

ElectedPaula PerotteMayorProposed · by role55:43

Thank you. Okay,

UnidentifiedCity ClerkProposed · by role55:50

and our last speaker is Matthew Kadotson. You'll have three minutes thank you.

0:55 – 1:0315 turns

PresenterMatthew CoddettCouncil's goals of protecting primary residents and preventing Goleta's long-terProposedself-stated55:56

Hi, thank you for taking my time. I'm Matthew Coddett, Slaver Todd's husband. I understand and agree with the Council's goals of protecting primary residents and preventing Goleta's long-term housing stock from being converted into vacation rentals But applying the 120 night cap to existing permit holders is not well matched to that goal. Because this is a second reading, my request is specific and narrow. Please amend the ordinance before adoption so the proposed 129 cap does not apply to current compliant permit holders.

We should be precise about the problem. Goleta has roughly 60 permitted STR's Two-thirds rent for fewer than 180 nights. Those homes are unlikely to return to the long term housing market because they're owner used when not rented, so the housing argument really comes down to perhaps 20 higher occupancy SDRs plus the city's concern about future homes becoming STRs.

Those are legitimate concerns but they should be addressed directly The 120 night cap guarantees harm. It means fewer visitors to Goleta, fewer tax revenue, less spending at local businesses, less work for Goleta citizens who clean maintain landscape and provide other services to make this housing work. It also adds administrative burden for the city to monitor nights across platforms and direct bookings. This will cost the city money over time as they will need to improve their policing efforts.

There is no clear benefit, an 120 day gap does not turn a short-term rent into a long term rent. They make the home more owner occupied it might more mid rentals or simply it might create a property with fewer guests. The policy does real harm to Goleta citizens, workers and businesses with the very unclear upside so please protect housing proactively. Permits don't maintain the 24-month waiting period after purchase limit Madam Mayor, we have no additional public speakers.

not transcribed≈19s of audible speech the AI couldn’t make out▸ listen
ElectedPaula PerotteMayorProposed · by role58:35

And there's no speakers for any other item? Correct. OK.

UnidentifiedUnidentified speaker 5Proposed58:39

Madam Mayor, I have a comment on one of the speakers. So on the second speaker, the gentleman who represented the HOA and told the story about a business license being issued, we can look into that. So I don't know all the circumstances but certainly our business licenses do come with conditions and if we were to find that conditions were violated there might be some things we can do so we'll look into that one.

ElectedPaula PerotteMayorProposed · by role59:04

So this item was not pulled, but it was just for a comment. So I would, unless somebody else has another comment, I would entertain a motion for the consent calendar.

UnidentifiedUnidentified speaker 10Proposed59:19

I'd move to approve the consent calendar items A1 through A8. Okay,

ElectedPaula PerotteMayorProposed · by role59:23

thank you. Do we have a second?

UnidentifiedCity ClerkProposed · by role59:29

Sure.

ElectedPaula PerotteMayorProposed · by role59:31

Second? Okay, all right. Roll call vote.

Roll-call vote Passed 5–0 move to approve the consent calendar items A1 through A8. Okay, thank you. Do we have a second? Sure. Second? Okay, all right. Roll call vot
Show transcript
Yes council members please lock in your votes beginning with Council Member Kasdan. Aye. Council Member Curiaco. Aye. Council Member Raes-Martin. Aye Mayor Pro Tempore Smith. Yes. And Mayor Parodi. Aye

okay the ayes have it thank you. Okay move on to our presentations

UnidentifiedCity ClerkProposed · by role1:00:00

That takes us to item B1, a proclamation of the City of Goleta California proclaiming May 2026 as Mental Health Awareness Month in the city of Goleta.

ElectedPaula PerotteMayorProposed · by role1:00:07

Okay and I'm going to be doing this one and I think we have Tony Varado Director of Santa Barbara County Department of Behavioral Wellness and Maria Valencia Chair of Behavior Wellness if they'd like to come up here accept your proclamation.

UnidentifiedUnidentified speaker 11Proposed1:00:46

Navarro yes.

ElectedPaula PerotteMayorProposed · by role1:00:49

All right okay I have the honor of reading the proclamation a proclamation of the City Council of the city of Goleta California proclaiming May 2026 as mental health awareness month in the city of Goleta Whereas, May 2026 is recognized as Mental Health Awareness Month in the City of Goleta and across the nation. Enhancing public awareness and working to dispel the stigma surrounding mental health.

And whereas, the 2026 Mental Health Month theme More Good Days Together Reflects the goal of supporting people in having more good days by meeting them where they are, honoring that good is defined by individual experiences and goals. And affirming that while paths differ everyone deserves some good days together and whereas Having more good days isn't a solo mission. Checking in with others and offering support helps lighten the load, we're not meant to do this alone.

Whereas when communities prioritize mental health, oh my God it's been getting a little emotional. It's something that's really near and dear to my heart. When communities prioritize mental health, we expand access to care for another. But everyone deserves the support they need to have more good days. And now therefore it be resolved that the City Council of the city of Goleta, California does hereby proclaim May 2026 as Mental Health Awareness Month in the city of Goleta and urges residents to share in the observance this month by making a personal commitment to raise awareness, combat stigma and create a community that prioritizes mental health well-being and seeking help when needed. Thank you both.

I'm wearing this bright green for a reason. This is the color of May Mental Health

UnidentifiedUnidentified speaker 11Proposed1:03:39

Awareness

ElectedPaula PerotteMayorProposed · by role1:03:39

Month.

1:04 – 1:117 turns

UnidentifiedUnidentified speaker 6Proposed1:04:03

All right. Ready? One,

UnidentifiedUnidentified speaker 12Proposed1:04:13

two, three. One last one for Kelly. All right there we go. Thank

UnidentifiedUnidentified speaker 6Proposed1:04:27

you.

UnidentifiedUnidentified speaker 11Proposed1:04:39

Yeah, just really

PresenterJaime ValdezProposed · by introduction1:04:39

quick.

UnidentifiedUnidentified speaker 11Proposed1:04:44

Thank you Mayor, City Council members and city staff for having Santa Barbara County Behavioral Wellness here today. Every county behavioral health department in the state of California also has a behavioral health commission and so Maria Valencia is actually the chair of our commission and will say a few words but we're really happy to be here tonight and to celebrate more good days together here in The Good Land I think that's a nice little intersection there that happens And speaking from my personal experience, and I'm sure that Chair Valencia may speak to hers. But I too am a mom who—I'm not just professional but I'm a mom—and this mental health and more good days together.

Raising awareness to create communities that support one another, that have awareness, that reduce stigma is vitally important to me personally as well as professionally. The theme and the campaign of Mental Health Awareness Month began in the 1980s But Mental Health America in the past decade has raised up a campaign called Light Up Green. And so this green that I'm wearing, the green of your pins, this is the green of mental health awareness and it signifies growth and thriving.

The light up green is across the United States and Santa Barbara County is proud to say this year that we are the most lit-up green county in all of the United States We have over 150 buildings from Guadalupe down to CARP that are lit up green and some of them are right here in your city. So we thank you so much for your partnership and collaboration with us on that. And as the Mental Health Behavior Director, I do want to announce that really becoming a part of the community also means that sometimes you can come to our meetings too. Our Commission Meetings are public.

They're the third Wednesday of every month At 3 o'clock located at our San Antonio Cairo campus on San Antonio Road. We'd love to have folks come and listen in and hear more about mental health, but happening tomorrow once a year we have a big plan under the Mental Health Services Act and soon-to-be called the Behavioral Health Services Act and we have to do planning for three years every three years for our system of care it's a very big process that involves you know almost 2,000 residents of the county this year But we're presenting the plan tomorrow from 3 to 5 p.m., and the Carrillo Rec Center on East Carrillo Boulevard is open to the public, snacks and refreshments. Come see the plan, ask questions, and it will be hosted by your Be Well Commission.

So I'm going to turn it over now to the chair for her comments. Thank you.

CommentMaria ValenciaProposedself-stated1:07:31

Good evening, Mayor and Honorable Goleta Council members. Thank you so much for inviting us. My name is Maria Valencia. I'm chair of the Behavioral Wellness Commission. I am also a NAMI member, National Alliance on Mental Illness. I am a family-to-family teacher and what that is it's a free eight week course that we teach at the mental wellness center On Garden Street for anyone who has a loved one with a mental health condition.

We offer this class through NAMI twice a year, so I just want to put a plug in for that very important eight-week course for anyone that's feeling hopeless and helpless who has a loved one with a mental health condition and doesn't know what to do like I felt back in 2009 I attended the course and felt like there was a lifeline there. And, I've been advocating for mental health and breaking the stigma of mental illness ever since.

I'm honored to be here to recognize the 2026 Mental Health Month and the theme More Good Days Together. But really we should be striving to increase our awareness and advocacy every day The Behavioral Wellness Commission helps turn the idea that we all have a role into action. It brings together communities, workplaces and organizations to make sure people can get the support they need by improving access to care and creating supportive environments. The commission helps more people have more good days The goal of more good days together is what this work is all about.

When the Commission supports collaboration and invest in mental health services, it helps build a system where people feel supported in their everyday lives not just during a crisis This makes well-being more possible for everyone. Having more good days isn't a solo mission, as was stated in the proclamation. Communities thrive when they prioritize mental health. When we take action together such as the Behavioral Wellness Commission, we can expand access to the care community and connection that make more good days possible for everyone in our community.

Prioritizing mental health encourages talking about mental health, bringing it to the light which reduces stigma and allows more to get the help they need. The role of the Santa Barbara County Behavioral Wellness Commission advises the Board of Supervisors and the Department of Behavioral Wellness, Director Navarro on matters related to mental health and substance use treatment services In part, we review behavioral health policies, programs and outcomes by conducting annual site reviews at county mental health care programs to learn about what is being done countywide And looking at how mental health and substance use services are provided at a continuum of care perspective.

We invite community partners and stakeholders to conduct presentations, and we hold monthly meetings where there is opportunity for public input. To encourage connection in trusting environments and have more good days for people We support transparency and accountability in behavioral wellness systems that seeks to be fair and equitable. Thank you for this opportunity to shine a light on such an important matter.

Thank you so much.

1:11 – 1:2029 turns

ElectedPaula PerotteMayorProposed · by role1:11:48

Do we have any public speakers?

UnidentifiedCity ClerkProposed · by role1:11:49

I don't have any speaker slips and if any attendees on the Zoom webinar wish to speak to this item, please use the raise hand feature and I will call upon you. Madam Mayor, I'm seeing none.

ElectedPaula PerotteMayorProposed · by role1:12:00

Okay. We have another proclamation?

UnidentifiedCity ClerkProposed · by role1:12:03

That takes us to Item B2. Proclamation of the City of Goleta California proclaiming the week of May 17th through 23rd 2026 as Public Works Week in the city of Goleta.

ElectedPaula PerotteMayorProposed · by role1:12:13

And Mayor Pro Tem Smith will do the honors. Thank you.

UnidentifiedUnidentified speaker 10Proposed1:12:27

Thank you. And we're here, we have some of the Public Works staff here and our Public Works Director Nina Buelna. I'm pleased to share this proclamation of the City Council of the City of Goleta proclaiming May 17th through 23rd 2026 as public works week in the city of Goleta Whereas National Public Works Week was established in 1960 by the American Public Works Association and is celebrated across North America to energize and educate the public on the important contribution of public works to their daily lives. And whereas the City of Goleta Public Works Street Division is responsible for maintaining the city's infrastructure, including sidewalks, pedestrian bridges, signage, traffic signals, city-owned buildings, storm drains, channel cleanup.

Street sweeping of the right-of-way, striping and markings 86 miles of city streets 36 landscape street medians 8 000 trees and three roundabouts. And whereas the City of Goleta Public Works Parks and Open Space Division is responsible for maintaining 16 city parks and 14 open spaces totaling approximately 515 acres 12 000 trees Including the Elwood Mesa Monarch Butterfly Habitat, Lake Los Carneros, numerous recreational trails, playgrounds, sports turf fields and picnic areas.

And whereas as part of our Public Works Week celebration the City of Goleta would like to recognize our Public Works Department as the city's unsung heroes of our society for their ongoing contributions to serving the public every day This year's theme, Rooted in Service Powered by Community, acknowledges that the roots of service run deep in public works. So now therefore be it resolved that the City Council of the city of Goleta does hereby proclaim this week as Public Works Week and calls upon all residents, businesses and organizations to recognize the contributions which public works professionals make every day to our health, safety, comfort and quality of life.

Approved today and signed by Mayor Paula Perotti. Congratulations.

PresenterJaime ValdezProposed · by introduction1:15:07

Thank you.

UnidentifiedUnidentified speaker 6Proposed1:15:31

Oh, there we go. All right, sweet.

UnidentifiedUnidentified speaker 12Proposed1:16:02

OK, big smiles. Ready? 1, 2, 3. One last one like you're really happy. Ready, 1,2. There you go. Perfect. Thank you.

UnidentifiedUnidentified speaker 13Proposed1:16:28

Good evening Madam Mayor, City Council. Thank you so much for the proclamation. I stand here as your Public Works Director and I'm so proud to represent the team I have here and the team that isn't here. I want to reiterate that we have the National Public Works Week tomorrow at the Calle Real Marketplace from 4-6. That is our World Cup. So we're really excited. We'll have touch a truck and everyone gets to meet our first responders, our heroes in public works because we are the first responders were the first ones out during emergencies traffic events so we're really proud of our team and how we represent the city of Goleta. We will also have a photo booth so that's really exciting I want to also add that Public Works has done a lot of great work this year and we've received a couple of prominent awards from the American Public Works Association.

So, we received Project of the Year for the 2025 Arterial Pavement project and this project includes San Luis Obispo County and Santa Barbara County so it's the whole two counties. We also received leader of the year our own John Plummer who is the principal in charge of construction management received that accolade as well. So I'm just very proud of our team and happy to be a part of our public works staff.

Thank

PresenterJaime ValdezProposed · by introduction1:17:54

you. Not so fast. Had a question.

ElectedPaula PerotteMayorProposed · by role1:18:01

Councilmember Kessin.

PresenterJaime ValdezProposed · by introduction1:18:02

Yeah, so first you know when do we have city attorney week or when do we have general services week? I mean it's just it's not fair but that's not what I was. So for truck touch I'm particularly interested what are some of the trucks that are likely to be there

UnidentifiedUnidentified speaker 13Proposed1:18:22

We'll have a trash truck from Marburg. A trash truck! Goleta Water's coming, we have a lightning SUV that's pretty cool that our inspector has.

PresenterJaime ValdezProposed · by introduction1:18:33

What is

UnidentifiedUnidentified speaker 13Proposed1:18:34

that? That's what it's called. It's a Ford Lightning. It shoots out lightning, it's pretty

UnidentifiedUnidentified speaker 6Proposed1:18:39

cool.

UnidentifiedUnidentified speaker 13Proposed1:18:42

And we also have Goleta Water there where you can I think paint a fire hydrant. Yeah, it's pretty cool.

PresenterJaime ValdezProposed · by introduction1:18:49

Yeah. And

UnidentifiedUnidentified speaker 13Proposed1:18:50

the fishing game for goldfish, not real goldfish but goldfish

PresenterJaime ValdezProposed · by introduction1:18:54

crackers. When my son was young he would wake up in the morning and run to the window when the garbage trucks were coming be positioned to be able to see when the garbage truck would arrive. So we, in another city where we live, we would go to Truck Touch and it was like one of the, like you said, the World Cup, one of the most exciting days of the year so I think it's great.

And I do wonder for Kelly, wherever Kelly is, if we're able to somehow...I know you guys have contacted the schools, the Goleta Union School District. But I wonder if there's any way we could contact some of the preschools? If that's possible because that's a target audience.

UnidentifiedUnidentified speaker 13Proposed1:19:45

I think that's something we can definitely look into in the future. Kelly has done a lot of outreach on our social media pages, so it's pretty saturated but we can definitely look at the preschools.

PresenterJaime ValdezProposed · by introduction1:19:59

Okay thank you and let's have a great World Cup.

ElectedPaula PerotteMayorProposed · by role1:20:04

We will, thank you. Council Member Carriaco?

UnidentifiedUnidentified speaker 8Proposed1:20:07

Oh boy. So if this is your World Cup, then who determines the brackets? Do you automatically draw Goleta Sand in the first round or Goleta West or Goleta Water? Like who does the brackets and then if you need a judge I'm happy to be a neutral observer and judge fairly.

UnidentifiedUnidentified speaker 13Proposed1:20:27

Well as a public works director I pick the brackets and I pick the winner so we will always win.

UnidentifiedUnidentified speaker 8Proposed1:20:34

Thank you.

UnidentifiedUnidentified speaker 13Proposed1:20:35

Thank you so much.

ElectedPaula PerotteMayorProposed · by role1:20:36

Oh, you're welcome. Thank you and you all do it with a smile on your face most of the time. Thank you. Thank you.

1:20 – 1:2512 turns

UnidentifiedCity ClerkProposed · by role1:20:53

Thank you. If any attendees on the Zoom webinar wish to speak to this item please use the raise hand feature now we'll call upon you. Madam Mayor I'm seeing none

ElectedPaula PerotteMayorProposed · by role1:21:02

Okay, thank you. Okay we can

move on to the next item which is the public hearing. Yes,

UnidentifiedCity ClerkProposed · by role1:21:08

yes thank you Madam Mayor that takes us to item C1 status of current staffing vacancies in compliance with AB2561-2024 local public employees vacant positions.

ElectedPaula PerotteMayorProposed · by role1:21:29

So we'll open the public hearing. We'll have staff presentation and then we'll have council questions if there might be any, and then questions from the public and more questions, more council questions if needed, and close the public testimony portion of the hearing, council deliberation, and close the public hearing and entertain a motion. And receive and file the report actually.

Thank you.

CommentJennifer JenningsProposedself-stated1:22:02

Good evening, Mayor and Council. I'm Jennifer Jennings. I am Steve Goleta's HR and Risk Manager. This public hearing is to fulfill our obligation under California State Assembly Bill 2561 which requires all local agencies to appear before their governing bodies once per fiscal year to report on the agency's vacancies. The status of the city's vacancies being reported on tonight is based on an effective date of March 31st, 2026. SEIU Local 620 which represents our two bargaining units was advised of this hearing and provided the vacancy data. They have notified the City they will not be appearing to speak to our vacancies this evening.

As of the reporting date mentioned before March 31st, the city as a whole had a 6% vacancy rate out of its total budgeted FTEs which was approximately 124. Of the specific bargaining units, the general unit's vacancy rate was 4%, and the miscellaneous unit rate was 13%. The HR team has been actively recruiting for vacancies since the start of the fiscal year. 32 recruitments have been conducted and 34 new employees have been onboarded. In the last year, our team has reviewed over 700 applications submitted for open positions.

We routinely work with each hiring manager to determine any nuances to the vacant positions to allow us to tailor job advertisements and particular areas of outreach so we can be sure to reach the right candidates. And while the integrity of each recruitment remains the highest priority, we take proactive steps to ensure we can move the process forward as swiftly as possible.

A great indicator of any healthy organization is growth from within since the start of this fiscal year, the city has promoted six of its employees soon to be seven as we currently have a promotional opportunity open We have initiatives in the works over the next year to continue to offer professional development to staff, both through structured training opportunities, the one that was mentioned earlier and through more casual lunch and learn events.

And we continue to see healthy usage of the city's tuition reimbursement program. That's all the information I have to present tonight. At this time, I'm happy to take any questions from the council.

ElectedPaula PerotteMayorProposed · by role1:24:24

No questions from council, questions from public?

UnidentifiedCity ClerkProposed · by role1:24:27

Thank you Madam Mayor. If any attendees on the webinar wish to speak to this item please use the raised hand feature and I will call upon you. Madam Mayor I'm seeing none.

ElectedPaula PerotteMayorProposed · by role1:24:39

Okay then I guess if I'll close the public testimony section and go into deliberations or entertain a motion and close the public hearing Okay, close the public hearing if somebody would like to make a motion. Oh actually there's no motion required it's just a file and receive report.

UnidentifiedUnidentified speaker 3Proposed1:25:04

Mayor I would be comfortable without a motion on this item that's correct.

ElectedPaula PerotteMayorProposed · by role1:25:08

All right okay thank you I guess we're done. Thank you so much. Next item.

UnidentifiedCity ClerkProposed · by role1:25:21

Yes, thank you. That takes us to item D1 fiscal year 2026 and 2027 budget mid cycle workshop.

1:27 – 1:598 turns

UnidentifiedUnidentified speaker 6Proposed1:27:13

Thank you for joining us. You.

ElectedPaula PerotteMayorProposed · by role1:31:37

Yeah. I'd like to bring this meeting back to order. If you could read the item for the record?

UnidentifiedCity ClerkProposed · by role1:32:31

Yes, thank you Mayor. That is Item D1 Fiscal Year 2026-27 Budget Mid-Cycle Workshop.

ElectedPaula PerotteMayorProposed · by role1:32:37

Thank You Luc Rio, is this you? Are you alone tonight?

CommentLuc Rio CityProposedself-stated1:32:43

Oh no I've got the

ElectedPaula PerotteMayorProposed · by role1:32:44

whole team

CommentLuc Rio CityProposedself-stated1:32:45

here with all the directors and staff. Well good evening Madam Mayor, Parody, Council Members and community members my name is Luc Rio City of Goleta's Finance Director so joining me tonight are several of our Department Directors which includes Nina Buena our Public Works Director Joanne Plummer our Neighborhood Services Director Peter Emhoff our Planning Director and Matt Forer General Services Director we also have our Assistant City Manager there in the back Jaime Valdez and then also Shannon Kern sitting back there as well. So we're here tonight to present the preliminary 26-27 mid cycle budget this is an update to that second year of the original two-year budget that council adopted last June now before we dive in I do want to give a special thanks to all the staff that was involved across every department on this really couldn't be done alone This presentation reflects months of collaborative work, receiving emails late in the night from me.

So people like to recognize Shauna, Tony Ryan and Jennifer from finance, Shannon and Jaime from city manager's office, Autumn and Sarah from public works and Elizabeth from the library. And also cannot thank enough the city clerk's office for being very flexible with me specifically on getting this report up uploaded here. So with that we're gonna go ahead and dive in So the agenda, again we're gonna go over the budget overview. Our development timeline touch a little bit on the financial and economic outlook, our revised projections of where we're headed towards in the next fiscal year. We also do have an updated five-year forecast which is an update from what was received back in February.

There's also an update on the fund balance and reserves and then also future strategies to help address some of the deferred maintenance items. So let's see, we're going to start here just with some context. So again this is a two-year budget it's based off the original strategic plan that was adopted last year in May 6 2005 2025 that set the foundations for council priorities This is again a mid-cycle update. So we use the fiscal year 26, 27 of last year as the baseline. So this is really just all about updating those numbers right sizing and doing true ups but also adjusting for anything that's been significant shift or anything new that's come online that we didn't account for so that includes like the Goleta train station.

One second I didn't realize I'm not sharing the screen here Okay, so again the purpose it's a right size and troop of the original plan. It's not really a major overhaul but it did feel like one this fiscal year just given the competing priorities and the demands that departments need to help keep up with the level of service. So now this is a preliminary numbers they will are subject to change and so we also will welcome any feedback that council may have So the goal is to ensure that this supports council's priorities and also the annual work programs that council received. We will have an upcoming hearing on June 16th.

So that leads me to the budget development timeline, so just a quick self-reflection of what everything we went through over the past few months. February 3rd again we had that five year forecast and then we had a series of annual work programs that kicked off with the city manager's office. February 17th you know there was March 17th we have the Measure A program or projects that was adopted. And then we also have the user fee update, a public hearing. So that kind of sets the fees and informs the license and service charges revenue, you know, the revenue amounts. And then now we're here with the budget workshop just updated numbers on the operating and CIP.

So financial outlook, so this slide may look familiar. A little bit has changed on this I would just say that ongoing revenues may be sufficient to cover ongoing expenditures and so we'll touch a little bit on that about our revenue situation and where we're at on that but also I do want to say it does remain challenged there are deferred maintenance items That is not fully programmed in the budget. So really this is just, you know again an update of what service levels have been like this past fiscal year and then including addressing the funding that's needed to operate the Goleta train station also that splash pad.

There's still a lot of uncertainty out there. There's still the increased risk of economic slowdown, we do have our large revenue sources are very sensitive to consumer behavior that specifically with the sales tax, the transaction use tax and then transient occupancy tax but as of right now you know we're not seeing any signs of any slowdown but slowing so we'll touch a little bit more on that when we get to those slides.

So this next slide is just a very high level overview Basically summarizing all city funds and then the general fund. It's comparing the original adopted budget from last June to the revised amount, what's being proposed as the preliminary budget. So starting with the general fund you'll see that with revenues it's about a 2.5 million dollar increase compared to that projection I would like to And then on the expenditures, the same thing here is you'll see the general fund original adopted budget was 53.2 million we're proposing a 61 million it's about an $8.2 million increase so it does at first glance it does look like how do you afford that? A lot of it is one-time funding so there's a little over I wanna say about a little over 6 million well actually touch on that a little bit more in detail about that One time funding source.

And then again special revenue funds, again that's tied to grants even development impact fees as well that go to support mostly our capital improvement program projects. The library per capita funds are also included in there so is our solid waste street lighting. I wanna say we have about a little over 40, I wanna say a little over 50 special revenue funds though there's a lot.

Okay, moving on. I just want to give a quick recap of major financial commitments just to remind City Council and the public what you know our budget continues to some of the major financial items that we've committed to over the last couple years so Public Safety Sheriff contract costs annual increase about seven hundred eight hundred thousand this includes you know the funding that we added for the fourth motor deputy in the second Park Enforcement Officer We did issue bonds to help fund those critical capital projects, so that did affect the general fund over the next 30 years. About 1.1 million committed to that. Sales tax revenue bonds for Measure A. So again about 1.4 million, that's over the next 15 years. We updated our MOU and market rate salary adjustments and also made sure that the big six priority capital projects were fully funded.

So summary of major changes so this is a very high-level overview of what, you know, what is being changed in this recommended preliminary budget. So with revenues again that $2.5 million increase it's driven by mostly the transaction use tax and we'll get into a little bit more about why is that interest and rent income that's from our investment income and then transient occupancy tax general fund expenditures.

An increase of about 8.2 million so 6.8 is related to one-time funding, 1.4 million is related to ongoing costs and then some of the kind of like a highlight of the new programs but also reorganizations that's you know within the budget document itself just so it's not to create any confusion here. The Goleta train station we assigned at a program number within General services that's actually going to be shared amongst multiple departments. So that's about a $426,000 new budget ongoing budget that's being currently estimated.

Economic development we actually spun this out to its own separate program if you recall maybe about five six years ago it actually used to be a standalone program under neighborhood services we went through that reorg we moved it into city manager's office but what But it was commingled amongst all those funds, and then so now it's being recommended to actually be a standalone. There's benefits to this especially when we go engage our cost allocation plan. We can properly separate out the operational costs and support costs.

And then with non-departmental, this isn't really an increase but a reallocation of an existing lease payment we had with I-Bank when we did that lease purchase or that lease agreement with I-Bank for the City Hall. It used to be housed in general services facilities maintenance, but it made sense to move it to non-departmental. That's also where we account for the lease revenue bonds and so essentially we view it as a form of debt So it's all together housed under that program So I'm gonna dive in right into revenues. So again, a high-level snapshot compared to where we originally were. This showcases the major revenue categories.

You can see there the transaction and use tax actually has the, I wanna say the largest, well, I guess yeah, with the largest single increase about 1.9 million it's gonna be about 13.5 million. You'll see that we did increase transient occupancy tax there about little over 200,000 for about 14.4 million. Cannabis business tax, I did want to highlight on this one We continue to see and experience declines. We were originally anticipating about a $700,000 annual funding level or revenue level there but we've continued to see declines in that category.

And then I wanted to touch on all other revenue. So that includes our investment program, fines and penalties, reimbursements, miscellaneous and transfers. What's really leading that $500,000 growth is our investment program. So as we continue to enhance our investment program and the funds that we do invest in and given that the current rates, you know, we did look at this further and we've taken up our estimates and we're comfortable with about what I wanna say about, we earned about 1.5 million investment earnings as of right now Okay I'm going to turn it over. This next slide is actually just kind of, it takes in the revised mid-cycle budget that's there in green and we did a kind of a reforecast of where we're headed just based on these updated assumptions also included in here is this the estimated actuals that were expected to finish off the fiscal year you'll see that we're at 57 million In fiscal year 25-26, I did want to point that includes a lot of large one time revenues related.

Some of it was related to the large one time recovery of sales tax that previously belonged in prior fiscal years. One second. And then also the FEMA recovery. So a lot of one-time revenues were captured there for 2526, so we're expected to finish off the year at 57 million. So we do have to back those one time revenues out and smooth it out. And so this is kind of like the long term projection of where we're headed.

So again, just kind of a reforecast. We're going to dive in now into some of the big four major categories so starting with property tax. So again you know this is reflecting our current revised preliminary budget numbers and then where we're headed there's four major categories that account for the entire property tax amount Some of that includes the secured property tax, the unsecured, the property tax in lieu of vehicle license fees and then also the documentary transfer tax. So while it looks like we might've taken a small dip here or not much growth on the prior year I just wanna point out that fiscal year 25-26 does include one large documentary transfer tax that was received due to that $235 million transaction for the tech park so the city probably received about a little over I want to say probably a little over 130,000 or so as one time and then we expect to receive about 40,000 in the long run.

the property tax rolls. And so that's kind of the nuance with property tax, just want to point out that it's the values that we receive is based on a lien date of January 1st, 2026. So any transactions that happen after the fact you will get it what they call on a supplemental roll and so it's not fully realized and so we'll actually see the value of those major transaction deals next fiscal year not 27-28 when you'll see that.

And then we did include some additional information here, some clarity. So for property tax it is subject to revenue neutrality agreement with the County of Santa Barbara. We share a portion of it 50% of the property tax categories that are eligible. That's your secured unsecured supplemental and there's actually one more other category but that's about 4.4 million being estimated for this upcoming fiscal year.

Moving on, the sales tax. We've clarified here that this is the sales tax only reflects the Bradley Burns. It does not include the transaction use tax, the Measure B. So again, revised estimates flatten the first year but expected to moderate growth in the next five. Again this is a revenue category that is shared with the County of Santa Barbara as part of the Revenue Neutrality Agreement. We received 70% of the 1%, with the county receiving 30%.

This sales tax is primarily supported by eight major industry groups with general consumer goods being the largest This also projection, I did want to point out does not account for any new major retailers or loss of any major retailers. And so this is kind of like our base case just kind of going forward of what we're seeing in the data and then in consultation with our tax auditors.

Transaction and use tax, so this is that new tax we started collecting January 1st, 2024. This what makes Goleta's overall sales tax rate 8.75%. Fiscal year 24-25 was the first full fiscal year when we started receiving this new tax revenue. The estimated actuals for current fiscal year 25-26 it's estimated at 14.6 million. So that's really high again that was also due to that one large You know, true up payment that was owed to us from prior periods. And so we had to smooth that out and then our new estimates are headed towards about 13.5 million and then with the same type of growth rate that's applied on sales tax. So I do want to point out what's kind of interesting about this projection is that transaction use tax actually performs better than the 1% Bradley Burns and that's primarily just due to the business industry that we have.

We do capture a lot I wanna say the goods that are shipped into Goleta to those businesses. And so it's just kind of interesting just seeing that. And so again, I did want to point out we're still working on collecting on one-time taxes that were owed to us from prior years. So it just continues to be a work in progress. Transient occupancy tax. So this is the city's hotel tax rate.

A hotel tax for City of Goleta is 12%. We're supported by nine hotels. We have about a room supply of 1,300 rooms and then short-term vacation rentals also makes up for a small part of it. I want to say short-term vacation rental is about 2% of overall TOT since 23-24. You can see here that our estimated actuals is actually expected to finish about 14.6 million, this is actually a little bit higher than what we anticipated and that's just really because of that elevated average daily rate that we've been experiencing.

Our estimates don't even include anything that has to deal with the World Cup or any special event so we do smooth this out. So again it's something that we do pay close attention to especially since it's our largest revenue provider for the city Okay, I'm gonna

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move on to the next. General fund expenditures. So this slide is a very high level summary of the proposed mid-cycle budget expenditures for the general fund by department compared to what was originally proposed a year ago and then what's being recommended or preliminary recommended for the upcoming budget adoption. I wanna say that the major cost drivers though You know, of this budget or the preliminary budget was our salary and benefit true-ups. It was about $392,000 in the general fund. And again, the one time CIP that was going about 5.7 million. You can see that down there. That's going towards the Big Six projects.

Gluta train station about 426,000. A real interesting one that we've been tracking here is insurance adjustments so we did actually anticipate an increase there but it actually came in about $220,000 higher than anticipated. So you know and then want a special call especially in light of Public Works Week. Continue to make more investments here, about a $1.1 million increase that's primarily related to about 540,000 in transportation development engineering. So we're restoring the development engineering budget for engineering support especially to help respond or do some analysis on the projects that are outside of the city limit lines and then also about 187,000 is related to contract services with our encroachment permits which are also offset by revenues.

There's about a $249,200 increase in parks and open space includes one-time funding amounts associated with the one time funds for forestry mulcher adjustments made for park maintenance utility maintenance associated with the splash pad. And then there's about 303,000 associated with the street maintenance program So the next slide, this is actually kind of a different way of showing the information here.

This is just to remind Council what's still in the budget. So again mid-cycle budget we did preserve all funding levels adopted in the original two year budget with minor adjustments. There's additional details in the report but you can see here that some of the I would call this kind of the front facing operational costs that can be seen here and I'll start with Sheriff contractor at 13.2, the pavement maintenance 6.25 and that reflects the new money for direct pavement budget. Parks and open space almost 4 million dollars annually. Transportation development engineering 2.3 million. Homelessness services 1.02 million. We've got parks and recreation programming a little over one million. Goleta Community Center, all funds about close to a million.

Goleta Library, all funds about 2.5 million. I'm not gonna go down the entire list but want to highlight economic development here still maintaining our funding levels about 432,000 that does include about 250,000 for childcare. Economic development about 150,000 and then it does reflect about 31,000 for the Lions Club and then we did account for the public art board stipends about $650 So again, this is a high-level snapshot of okay so with all that programmed in the budget based on assumptions especially with salaries and benefits and some of the CPI escalators that we're anticipating you can see where we're headed with this mid cycle preliminary budget in the next four years here.

I would say we're at that level where we're able to afford what our current service levels are with the train depot and whatnot. There are a couple things that can throw this budget off. Some of the things that we're looking at right now or waiting on to hear is the result of the MOU with the sheriff and their Deputy Sheriff's Association Union. We expect to probably hopefully find out what that amount ends up being by the end of June, hopefully, or early July. I just want us you know, we did anticipate it to be kind of like the status quo right now. We did put a small little buffer it's about 5.28% annual increase right now in the growth factor I put 5.5 Did want to say though, whatever number we end up hearing if it's a 1%, the 1% number what I've calculated is about for every 1% increase that's different from ours.

It's about $123,000 annually Okay, next slide. Moving on here to Goleta Library. So we do put this up just to kind of narrow in focusing on the funding sources for the Goleta Library so this kind of just shows the original budget and then you know the projected budget. Did want to point out numbers are subject to change so we are going to fine-tune some of these that we know we did get some updated costs and so there'll be some minor tweaks here here and there.

About a $2.5 million budget, you can see the funding sources with the county per capita, the library facilities DIF and then our measure L. I do wanna point out some of this budget for support from the county per capita in library services is being supported by one-time fund balance. So what that means is that we've built up a fund balance just due to salary savings or unused expenditures that roll in but it is...

Our goal, the budgeting principles we follow is to always deplete those first before we touch the general fund In the long range, let's just say that there was no fund balance. The general fund contribution to maintain status quo levels would be about an increase to $800,000 from the general fund. This next slide, you've seen this before maybe a couple years ago. This actually has been slightly updated. This is that Goleta resident per capita comparison just taking in the population count and it basically shows what Goleta City residents pay versus what other residents pay like Isla Vista.

And what I take from this is that You know, Goleta City residents pay nearly five times what an Isla Vista resident would pay and nearly three times what someone in CSA3 resident pays to operate that library. There's a kind of a different way of looking at this too on the per capita basis. You can see there on the far right, you get your per capita total that's your but then you have your per capita total with city overhead so that's one unique thing that our city does we actually don't charge an overhead rate to our own library when we used to be under City of Santa Barbara management.

We have the right to do it but we just chose not to if we were to factor that in it would be about a 20% cost on that and so that's what that other per capita total of city overhead And then one time per capita with the Galeta Valley Library project just showing the magnitude of the investments we're making into the Galeta Valley Library. Okay, next slide is Galeta Community Center. Just because this is also another continued You know, I would say this is kind of like a you know something we took in-house recently and so it just kind of wanted to give perspective of where we're at with the community center.

So again it shows the funding sources and then the community centers you know how much revenue they generate. So again about almost close to a million dollar budget so expected to be fully funded here Okay, moving on. Next slide here is the snapshot of the citywide authorized positions over the last five years. You can see starting from fiscal year 22-23 we had about total full time equivalent of 117.3 FTEs and then going to 26-27 about 103.6. I did wanna point out that this does not reflect... I got a typo there. Does not reflect two new personnel changes requests that are currently under review And so we'll talk a little bit about that on the pending items slide.

Okay, so what does the general fund look like when you combine the revenues and our expenditure forecast? So this again removes any one-time revenues and expenditures. It's slightly better than what was shown in February. Again primarily due to the transaction use tax measure B, a little bit with our investment income and also our transient occupancy tax. So I would say it's I would say we're right there. Again, it's basically we can absorb the small cost inflation minor adjustments but again if there is a significant amount of unanticipated contract adjustments it will eat into our net operating revenue Yeah, so that's again this will continue to be refined but I just thought I'd share that. If you go and look at what was presented in February we were expected to cross around fiscal year 28-29 but again that's not the case just yet.

General fund contingency reserve. So we did want to put this up just to remind council that we do continue to also meet our policy target levels about 33% of operating expenditures which is about four months It's there if we do need it for immediate funding, disasters emergencies. We also use it for cash flow. It does shield the city from any tax delays and downturns. There's also flexibility around it you know if there's about one-third available for capital or revenue enhancing projects with a repayment plan But you can see here 2526 we're going to finish off the year about 30.8 million in total reserves there and yellow on the bottom 15.1. Other reserves and one time fund balance 15.7. Now, the reason why that fund balance is so high it's a combination of I want to say unspent Some of it will get rolled over, but we've done our best to try and do an estimate for the mid-cycle budget.

So this is kind of... We'll get trued up again when we go through our audit process, but I'm comfortable around saying that our general fund reserves in total or general fund balance is about 24.7 million which is actually a pretty good position. But then again if we were to use it as you gotta view this as one time funding. It's basically our savings account Okay, reserve updates.

So if you recall there was a few categories that were being reviewed in the staff report. There's actually a memo that we provided to the Finance Committee and I wanted to give the opportunity to turn it over to Matt for our General Services Director who is going to speak a little bit more about the Facilities Capital Building Maintenance Reserve.

1:59 – 2:073 turns

CommentMatt FordProposedself-stated1:59:06

Good evening Madam Mayor, Council Members. I'm Matt Ford, General Services Director. The purpose of this brief discussion is to talk about a Facility Capital Reserve Policy. I want to be clear we do have a facility capital fund at the moment and it has about $1 million in it currently. What we don't have is a policy on how we will fund All of our buildings so that they can remain operable, safe, legally compliant and all of those things. As Mr. Ryu said this is attachment five it's page 276 in your packet if you want to follow along but one of the first things that I said to you when I got here back in 2022 was that we needed to come up with this number. We needed to be able to tell council how much should we be putting away to take care of our buildings We did that in a variety of steps.

Back in 2023, we commissioned what's called a facility condition assessment of all of our facilities and the common model for determining a reserve target is to determine what's called the current replacement value of our 148,000 square feet of building square footage And from that, take a 2% to 4%. We use 3%, 3% of that value and that's your annual target.

If you want to follow along in the graph what we initially came up with was a current replacement value for all of our buildings of $55 million. Now, this is where real world and theory diverges a little bit in that current replacement value doesn't include four key components, four key costs. The first is ADA compliance. And there's a very low trigger in California, I think it's something like $220,000. If we do $220,000 worth of work, we are legally required and it's good to make a number of ADA improvements but they're costly.

The second is, and as you're well aware many of our buildings are historical. With historical buildings comes lead and asbestos so we added a 5% coefficient to that current replacement value just in recognition that there's going to be one-time costs they're one time because once we abate those hazardous materials we don't have to deal with them again And we're seeing that with the Gleta Community Center seismic retrofit, for example, and also the library project. We're paying a lot in hazmat removal but we're also reaping the benefits here on out.

The third cost is architectural and engineering costs. How do we, we know what needs to be replaced but in terms of the plans and specs that need to be developed to do that work. And then finally construction management. So what you'll see in that table is our base number of 55 million once we add those four unaccounted for costs we get to about 89 million.

And if we take 3% of that number our annual reserve target then is 2.675 million. That's a big number, right? And staff fully recognizes what we should be putting away and what we can put away are often two very different things. But we did want to at least tell you what the target should be. So then staff went... We went back and looked and we thought well council has funded capital renewal especially since I've been here in the last four to five years pretty well so we went back and looked over the last five years 2020 The five-year target at $2.675 million is about $13.3 million, so you've actually funded more than what we need, so bravo to the City Council.

Much of that came in the form of grants. We were pretty successful with seismic retrofit grants, California library grants, CDBG funding and things like that. So as a result where do we stand today? Libraries in very good shape. Amtrak station's in very good shape so the Amtrak station is actually one of the prime buildings where we want to start putting funding away now at time zero when it's not a big burden So that we only have a little bit to contribute so that 20 years from now when we need a new roof, we have the money saved up versus you know Glita inherited a lot of buildings many of those buildings under other Other ownership weren't maintained very well and we were playing a little bit of a 20-year catch up on that, right?

So council's done a good job. The concern is, well what happens if we're not that successful with grants? Then you know that's an added pressure on the general fund. Now we're going to continue to aggressively apply for grants We are through, I would say kind of the easy buildings at this point. You know the library is 53 years old but it's not 100 years old.

The community center, I'll just give you a really quick brief rundown. Community Center main building is in pretty good shape after the seismic retrofit. The electrical system is in dire need of replacement that's the only new capital project that we put forward this year, about a $750,000 project to wholesale replace the electrical system at the community center. The classroom wings at the community center really need help. They need a lot of investment at this point. That's Communify and Rainbow.

We have an appropriation request in for the rainbow school portables at the community center, and everybody has their fingers crossed that those get funded. The Stowe House and the Historic Railroad Museum, again two more buildings that really need a lot of investment. And so that's where we stand. Just to wrap it up then, we're looking for Council support in a formal policy that will fund this. As I said you know the 2.675 million number? That's my responsibility to tell you what we should be putting away. What we can put away very well be something different. We're recommending as a contingency That the facility capital reserve never dropped below $1 million.

That will give us in our estimation say two major failures of a building system, could be on the same building, could be on two separate buildings that would allow us to cover that cost. And with that I can either take questions now or we can wait until the end.

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ElectedPaula PerotteMayorProposed · by role2:06:13

Council Member Reyes-Martin did you have a question?

UnidentifiedCity ManagerProposed · by role2:06:16

I have a question on this one. Well, actually maybe not a question just to say that I noted in the staff report that it was mentioned and in the presentation just this idea of deferred maintenance and the capital project funding or improvement funding and I'm very supportive of the council moving I think it's so, so important. Everything you described is not a nice to have kind of thing. It's we have to have it so that we can try Get ahead of having a failure and also have some funding available as things will happen, especially with aging facilities. So I think it's really, really important and I know it means finding the funding to put that in there but I think that actually is a more accurate reflection of what our budget should be so we should do that.

So, I just wanted to comment that I'm really supportive

2:07 – 2:199 turns

ElectedPaula PerotteMayorProposed · by role2:07:25

Council Member Kariyako.

UnidentifiedUnidentified speaker 8Proposed2:07:26

Thank you, I think perhaps more of a comment and just kind of food for thought we're wrestling with a couple years down the road starting to approach if everything goes according to plan kind of a nominal gap between income and expense. And I'm mindful of the fact that it's probably 15 years or more since we last did a facility study to really understand what the needs of Stowe House, the needs of the depot were. So I'm glad that this hard work has been done so that we can identify how much money we need to start putting away to really care for these buildings and care for these properties because they're a really important part not just of our community's history and our community's legacy but also how people enjoy themselves and recreate and get married and have celebrations, and everything else.

But I'm also mindful of the fact that some of these organizations are also receiving annual operating contributions through support to other agencies that if you look at the 990s for these groups is a significant portion of their operating budget. They make a little bit of money on events They don't seem to be doing a lot of other fundraising, and so they're basically like we're basically funding the operating budget. And I'm not saying that's a bad thing. I'm not saying that's a good thing. I am glad that we are supporting our community partners but I think that one thing we need to think about for the next two or three years is do we want to keep our support to other agencies leveled the same?

and start sticking significant general fund contribution into reserves for the buildings to do those improvements at the same time? Or should there be a conversation with them about is there an opportunity for real partnership for the next 15, 20, 30 years of these properties because the entities themselves have a vested interest in those properties being successful. We may be accountable to make sure that those facilities are well cared for and arguably responsible as well. But I think there's a shared responsibility, too.

And so I just want to make sure that we're thinking probably not so much for this budget but I think for future budgets when we do our next two-year budget what's our plan going to be for some of these community partners? Would it make sense for us to have some kind of conversation with them about like what's your plan Once upon a time, Goleta Valley Historical Society was doing a capital program and they redid the barn.

They had some plans to perhaps restore Edgar's Lab and do some other things. And those plans have been on hold for a long time. And I don't know if the capital campaign ever officially ended but I would be interested to know do they have plans to do a new capital campaign? Do they have any plans for future goals or expansion? And how can we partner with them But also how can we be informed about those things before they just come up to us one day and say hey, we're starting a $2 million campaign. We really want the city to contribute some additional money on top of the other things that we're doing. I would just rather get ahead of those conversations as we start to look to the future and start having to think about some of the choices that we're faced with.

So thank you.

PresenterJaime ValdezProposed · by introduction2:11:06

Yeah, I guess in general. I think you know having reserves and anticipating what do you call it with investing? You know you put dollar investing I guess so yeah which is what we've been doing as a city in terms of our investing and so anticipating our future costs and putting money aside and to be able to prepare And maybe like we do sometimes in pavement, we bundle various projects and because we have the funds to do it.

The one thing I would say though is that what I would hope we avoid and this in other words this is not just a general services related thing as we have an abundance of deferred maintenance issues. And not to spoil the surprise, but when Ms. Boyle now comes up and talks about pavement that we're going to unveil a similar or not similar, a worse problem And so I guess it's, what we'll have to do is for this pavement and others step back and say how do we, what's our strategy? That will need basically a strategy on how to get there. Because I think what you're proposing is wise but I would hate not to address it in isolation of other needs that we know are outstanding in terms of deferred maintenance. But anyway, that's all. Thank you. That was helpful.

ElectedPaula PerotteMayorProposed · by role2:12:39

Thank you, I'll just be real brief as well. to And just to keep it up, so I hear what Councilmember Kariako is saying about working with our nonprofits as well and you know working collaboratively together and seeing how we can all have a plan. So you know I'm very supportive of putting money aside I can't think of why we wouldn't. The only thing I can compare it to is because I guess I've been here for so long, we never put enough money away for maintenance of the roads.

Plain and simple. I was a part of it but I didn't know any better that we would need so much more money to maintain our roads but we never put enough money away and we got ourselves into... It's a problem. So I think this is wise. This is forward thinking, and I applaud you for speaking to us about it today. Thank you. And you're doing an excellent job with all our buildings. They're looking good. I know it's ongoing. It's like owning a home in all the things that start breaking. You know? It's ongoing. It continues. So thank you for that.

Okay. I'm not seeing any more questions. No?

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CommentLuc Rio CityProposedself-stated2:14:24

All right, thank you Matt. Continuing on just want to give council an update so there's still a funding policy we're looking at for the section 115 trust that's for our pension retiree health care costs we have made significant efforts over the last few years on funding that IT reserves is another category we do have some reserve balances there but what you know we do need to have a kind of a similar funding strategy and there's a couple of ideas we've been contemplating and again another one is capital improvement program funding is another category that we do you know when we can set aside You know, be wise to also set aside funding that if we do need a local match or some type of extra funding that may not be available from other funding sources, we would have this pool of funds.

We kind of right now have always relied on the unassigned fund balance but really it's kind of the idea is to kind of divvy that up so it's in buckets and then I wanted to really quick on the contingency reserve. So you know, I can either look at this, It's been asked before, is it right size? And I would say it is right size for us. A couple things that we do look at when we calculate this amount, we do look at the funding that's set aside also for pensions and Section 115 trusts because it's kind of like in a way double counting in a way. But another thing too what it serves and this is something new and we'll probably have to talk about it when it comes to our audit but some of the major capital projects that were embarking, we do have to put up performance security Whether it's getting a line of credit or using what they call a guaranteed letter of payment and essentially you have to secure your internal funds And so the contingency reserve would be utilized for that.

So, you know what? From a recent email I think it's about three million dollars that we got to use that contingency reserve To help secure that so just want to point that out too that it's a great tool to have not only just for You know, for emergencies cashflow but also instead of paying 1% on getting a letter of credit you can save money by internally by doing that as well putting that internal funds up.

Okay moving on oh I did want to point out there is a green box here should there be significant economic downturns we do have cost reduction strategies they were kind of they were formulated during the pandemic it's still that three-tiered approach really it's all about if we do see signs of kind of this With our revenue situation, there are some strategies we would approach. There's three tiers. Most of it, you know the first tier is kind of like that hiring freeze renegotiating certain contracts. We have tier two, that's reassessing our funding levels to certain entities, possible freeze on COLAs, use of reserves and then tier three is really where it would be like really major service level adjustments but we're not anticipating any of that but I just want to remind council we do have that available to us

UnidentifiedUnidentified speaker 8Proposed2:17:09

Thank you. I wanted to address that, I'm glad you brought that up. When we had the COVID pandemic and this is getting a little bit to something the mayor quite bravely said earlier about our roads and investments We were able to pretty much get by with the tier one approach. We had a number of open positions and we froze them. I think it was like 10 or 12 positions, but then one of the other things that happened, a full year without really having a significant pavement program investment. And I think there were maybe some delays before we went ahead and actually did the next year's pavement program.

And so, I wanted to get a sense how are we doing right now in terms of vacant positions? Like how many vacant positions do we have right now? You know, I'm thinking about the fact that we're living in an era right now of $6 gas. And I'm thinking about well what does that do to your TOT when so much of our TOT is based on the drive market? It just got a lot more expensive to drive. If that is going to go on for any significant length of time, we have to be prepared for a shock to our TOT sooner rather than later.

If we had to start looking at this really soon, and I'm not saying we have to. But if we needed to like how many vacant positions do we have right now?

CommentLuc Rio CityProposedself-stated2:18:41

That's a good question. I would have to see if, I don't think our HR manager is here but I'll turn it over to Jaime Valdez.

UnidentifiedUnidentified speaker 14Proposed2:18:48

Jennifer left and she'd probably have those right at her fingertips. My recollection we're somewhere around seven positions in terms of recruiting not including any new positions but I can double check that number but I think that's more or less. Thank

UnidentifiedUnidentified speaker 8Proposed2:19:01

you. I'll just say right now for the record if we do get to the point of tier one pavement can absolutely not be part of that. It just can't.

2:19 – 2:3414 turns

ElectedPaula PerotteMayorProposed · by role2:19:14

Council Member Reyes-Martin.

UnidentifiedCity ManagerProposed · by role2:19:17

Thank you. Just a quick follow-up on that note, I think you're absolutely right about being extra cautious and aware of TOT. Not only the cost of gas but the cost of flying is outrageous right now. And being on the Visit Santa Barbara board on behalf of this council, this topic comes up quite a lot and I think both of those things are real big I'm glad to see that there are some cost reduction strategies identified.

I think we're all, you know, cautiously optimistic about kind of the positive report that's being presented tonight with some, you know, these kinds of warnings and potential guardrails we need to have in place. What would be the best mechanism for us as a council to, you know, have a more serious discussion about cost reductions. Would that be when we have those quarterly financial reviews?

If things really start to, we feel an impact over the next six months is waiting until this time next year too late? I guess those are some of my questions because I agree and I want to say also, I didn't say it with my earlier comment Your presentations are always so great and so easy to follow, and I sincerely appreciate that. I'm sure it's so much time from yourself and your team, um, and I hope folks that are either watching at home tonight or will watch the replays later can also follow along you make it really easy for all of us and I think the public to understand where we are. Um, you know, I think there's a lot of positive in here try to prepare as much as possible for, you know, more of a downturn and being prepared with kind of what are the low hanging fruit?

What are the things that we can do that don't cause as much harm as some like really draconian cuts which no one wants to see. And how do we plan for that or be ready for that if we need to be so those are kind of some of my questions around that

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ElectedPaula PerotteMayorProposed · by role2:21:56

Did you want to respond to that? Yeah,

PresenterJaime ValdezProposed · by introduction2:22:02

it was really a question. This is just following up on the comments that others have made as far as TOT in particular and downturns that we're entering now the summer. And I would think this is sort of the time when if there's going to be a reduction in driving and flying, and people are not going to be staying home or avoiding things, we'll know pretty soon is there a coming date or coming point Where we would have a clear signal that there's likely to be a downturn in traffic because of gas prices, in particular.

Is there something? The start of the summer is this point and a week later you'll see our travel plans or the hotels start indicating. I don't know, anything like that that you know of?

CommentLuc Rio CityProposedself-stated2:23:07

Yeah I can share. Okay so first let me kind of respond to Council Member Reyes-Martin's questions here. Yeah, the quarterly would be an appropriate avenue but we would if we see signs of like let's just say the sheriff contract. We find out it's about 5% increase. We would run the numbers to see where we're at and probably immediately go to the next council meeting and give a heads up where we're projected.

We may you know what we are coming up for negotiations it maybe something we can look at. If you recall we did add positions to it the menu items so there's something you can look at that too But we do have, you know, again that's why we have the reserves there so we don't have to make rush decisions. It allows us to take time and really think about the magnitude of it.

Same with revenue interruptions impacts with, you know, the drive market TOT same kind of concept. You know, we can see somewhat trends they're a little bit backwards but there are some forward-looking data That we do receive from consultants and even from Visit Santa Barbara, they do provide a great resource on that. But it's kind of, it's a lot of volatility there but I do want to remind council like you, we also have to remember the other thing that's going on here in Goleta is just the major investments that are being made by private equity with Google, some of these defense-based contractors, some of the bigger names that just moved in here, Anduril Industries and so we are seeing some of that too.

The other thing too, I don't think it's been touched on a bit and it's not even in our forecast but I just thought it was an interesting move by UC Santa Barbara. I know it's next door but they did change their division of sports divisions so that we will be playing against different sports teams and colleges that also is something that could add additional travel just given our proximity to UC Santa Barbara.

But again, there's a couple of ways. If we immediately see something in the data and it looks like it's gonna seriously impact, we would come back to council and recommend some strategies. And again, first thing we would look at the unassigned fund balance and then look at what is discretionary? What would have the minimal impacts to service levels? What can we maintain? I think if you recall when we'd had the pandemic, we actually did it kind of interesting.

Went third quarter and I want to say we skipped the budget process. It was kind of like this one catch-all and then yeah it was to do a hiring freeze, also recognize the potential revenue loss and put up the unassigned fund balance as a temporary stabilizer about four million dollars of it just to help maintain service levels.

ElectedPaula PerotteMayorProposed · by role2:25:46

Thank you. Council Member Kasdan

PresenterJaime ValdezProposed · by introduction2:25:50

I just

UnidentifiedUnidentified speaker 14Proposed2:25:53

had one more in terms of your specific question about travel. AAA puts out monthly reports on travel and then they also do summer kind of in-depth ones so you can see a lot of the changes is what's cited in a lot of reports that you'll see in the media, I think even break it down by state. nuance it is, right, to Goleta. But that is kind of a directional proxy for what's going on in terms of travel because they do watch travel in terms of people and airplanes and in cars so that could be one other avenue for research.

PresenterJaime ValdezProposed · by introduction2:26:31

Yeah, that would be interesting to hear what comes out. The other thing is that for a lot of places the thing that tides them over not so much in California but tides them over during recessionary times is the money from property tax because it doesn't waiver or doesn't vary as much as income tax and so I was just curious First, you had mentioned all of those businesses coming in, those tech businesses. And so I was wondering if there's been a turnover in terms of the properties and so they have new valuations and hence the property tax are higher? And then likewise with respect to that $235 million transaction, are we going to see much of an impact on the property tax side?

CommentLuc Rio CityProposedself-stated2:27:21

Yeah, good question. Yes so because of the timing yeah we'll see about $40,000 related to that you got to remember it was already pretty valued pretty high so they will get the incremental about 40,000 annually subject to up to a cap of 2%. Again I would say too there's a couple major development projects that are under construction right now I want to say like even like Heritage Ridge for example Once it's fully built, put in use we'll see additional property tax revenue. So none of that is actually accounted for in our property tax projections. We keep it very conservative.

Okay thank you.

ElectedPaula PerotteMayorProposed · by role2:28:05

Council Member Carroll-Oquo do you have another question?

UnidentifiedUnidentified speaker 8Proposed2:28:07

I just wanted to follow up. Jaime mentioned AAA. I think we get in our inbox quarterly a pretty good report on TOT also, which is the quarterly update that Visit Santa Barbara provides. So you can look at things like for winter of quarter 3 2025 versus 2026, a really good one for us to watch for South Coast is REVPAR, revenue per available room and we were up 15% for this winter versus the past one.

And I think it's a pretty good one for us to keep an eye on, because we have a pretty good diversity of hotel room types amongst the different levels. And we have pretty good loyalty brand membership with Marriott and some of the other ones. So you can kind of keep an eye on the Visit Santa Barbara reporting that we all get in three months we'll get another That'll kind of give us a sense of how we're looking going into summer.

ElectedPaula PerotteMayorProposed · by role2:29:09

I'm curious to whether, you know, just kinda taking this all in and if maybe people, yes gas prices have gone up and airfares are going up but maybe folks have been planning for this and they're gonna do it now? I'm wondering if the effect will hit us later like folks realize that We can't keep continuing to pay this much for gas and travel, so we're gonna not travel as much or not use the... I don't know. We'll have to wait and see, and those are all great suggestions of where to look, but I don' t know if it's gonna show right away. I think it's long-term, and we don't know how long-term all this increase in gas is going to last. Okay, I'm not seeing any more questions.

CommentLuc Rio CityProposedself-stated2:30:01

All right I'm going to move on to the capital improvement program. So just want to really highlight that the Capital Improvement Program budget is still currently being developed, subject to further refinement so anything that's in the staff report or in the attachments are all draft and will be Further updated and provided as part of the June 16th, 2026 budget public hearing. If you recall we did have a five-year CIP project list that consisted of active priority projects, an updated five year CIP budget and then also an updated long term CIP project list I did wanna point out the big six priority projects are now fully funded, because we are recommending that additional one-time funds to help against the San Jose Creek Maintenance Project.

But just moving on here, just kind of what it's looking like. Again, just focusing on one fiscal year of the legal appropriation that's needed for this upcoming budget year. So general fund 5.6 million, so again, Just related to that big six project there this the San Jose Creek fish passage modification project and then special revenue funds it's been revised to about 23.3 million a lot of times what happens is if Funding gets either pushed out a little bit more so again, this is specific appropriation to the upcoming fiscal year only This next slide here is this a high-level snapshot of just focusing in on the five year CIP budget summary. So what's kind of deemed the priority projects so you can see these numbers here again it's going to be further updated and refined we'll have more information in the staff report about some of the slight changes here But you can see total project cost about $300 million.

Cost to complete, about $173 million. Funded amount 128.3 but estimated unfunded amount about $45 million there. So again, like I said it's gonna be further refined. More details will be in the staff report but one of the things we're working on is just giving council a very clear picture of what is the active priority projects and what's being recommended to shift to long term just to help manage workload.

And so that's what we wanna make sure we're fully transparent there so that'll be coming back. Okay, I'm gonna move on to pending items. So these were items that have been kind of in the back burner here until we could make a finding about our overall revenue situation, expenditure situation. So we do have some items that are still under review here that would be part of the final recommended budget. That includes the personnel changes. There's actually two new position requests. One is considered net neutral related into public works and one of them is related to a management analyst in the housing division under planning, and then two reclassifications of existing positions that are minimal amounts. When you factor all that in it's about 184,000.

I did want to mention that what's not in here so this is just the full time there is these two part-time recommended reclassification that's also going to be part of the final budget. It's related to the library It's a very minimal amount, about $3,000 cost to reclass a library assistant to a library tech on annualizing. So that's not in here but it's going to be part of the budget and that funding source really comes from their special revenue funds I just want to clarify that there. There's the benefit updates that's being recommended estimated annual costs $193,200. That includes the long-term disability enhancement therefore All employees, the short-term disability for unrepresented management and then also addressing the rising healthcare costs.

Health allowances, the impacts for those that claim you know have a plus one or even a family so we're expected that you know it's recommended to increase those allowance rates and then simultaneously there is going to be various personnel rules that are gonna be brought back as part of the budget document. So some of this related to these other recommendations but also just some cleanup items And clean up language to some of the holidays in our personnel rules.

Defining vacation, just kind of more definitions and revising some of the sections there. One of the major ones too, and it's going to be net neutral but it's giving flexibility to departments when they do have vacancies and you know the ability to temporarily have that I'm going to be talking a little bit about how we're going to do that.

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2:35 – 2:402 turns

ElectedPaula PerotteMayorProposed · by role2:35:06

I have a question on the personnel changes, the two new positions request. Can you talk more about that?

UnidentifiedUnidentified speaker 5Proposed2:35:15

Mr. Rio, I can take that question. I was ready to jump in but your question prompt is exactly what I was going to address. So on the personnel changes and to Luke's point, in the process we go through to get to this day where we have this workshop and bring you the first recommended budget There's a lot of moving pieces, and so requests for possible personnel changes don't just kind of come in at the last minute. They're part of the process but decisions aren't made internally until we see if everything else is fitting together. So in our process which as you saw from the timeline It almost looks like an annual process to put the budget together, but let's say it's six months. We really start in earnest in January and one of the first steps is that the departments do come forward with any needs that they perceive for personnel changes.

So these ones that you're seeing now were being talked about probably back in February-March and then we wait and see how everything comes together. So the two positions, I'll go through them all to answer your question. And so these were vetted. The reclasses go through HR. They do an analysis to see if it's warranted and then the new positions are also vetted and go through the city manager's office. So one of the positions, the one that's net neutral is proposed in the public works department.

This position is, I don't know if we have the exact title but it's essentially an engineering inspector position And it would be specifically assigned to the paving and concrete projects. And so as has been noted previously in comments, there was a time during COVID maybe there wasn't as much paving being done but as you see now we've kind of hit a stride I would say and there's been at least six million dollars budgeted now for three years in a row And continuing and the public works department has got into a rhythm on how they design and bid those. It's every year, there's two projects and then the next one is going out while the last one is finishing. So there is kind of this rhythm that's developed and up to this point in the last three years relied on a significant amount of consulting engineering for construction management and inspection And so the case has been made that we could do that in-house specifically for the paving projects.

And save some consulting costs. So as noted here, net neutral the budget these numbers are not reflected in the budget right now just wanted to make that point that's why Mr. Rijo listed them as pending issues we're coming to the council today and we do want direction on these and we'd reflect that when we come back in June but the numbers the amounts that are allocated to public works for consulting services for the paving project would go down And that would be the adjustment with the cost for the fully loaded costs for the new position. So that's that one and if there's technical questions of course Ms. Boyle is here to answer those.

The second new position is in the planning department as Luke said it's in the housing division we are proposing this and recommending it came out Various comments that we've heard, our own evaluation of the needs of the department. And Mr. Imhoff can speak to that as well if there's questions about that. But it did come up during their work plan and as the council was kind of looking at all of the items that are on the list that we struggled to get to both in the long-term planning division but also in the housing division as well. So this position, I think we're looking at analyst housing analysts to be more specific.

And so that would right now it's a one person division that would make it a two person division maybe analogous more to our sustainability division which has two people in it and we feel the work is there and again if there's questions from council Mr. Imhoff can answer those and then the two reclasses one is Our emergency services coordinator and again when reclasses are looked at, we look at the work that's listed in the job class versus the work that's required. Sometimes those aren't always in sync but in this one certainly the workload is changing and adapting over time as we have more emergencies and there's just more focus putting on not only Coordinating and being a partner in responding to those emergencies with our county and other partners, but also getting reimbursement from FEMA which is a skill.

Which is very very important so that position's also being recommended to be classed up to an emergency services manager. And then the second one also in the housing division is the position that's already there it's an analyst now It's a senior analyst and we're proposing that would be reclassed. I don't know if we have a title on that, but that's based on the workload and what we're seeing on the demands of that position in that division. So that's kind of a summary. I hope that answers your question, Madam Mayor. And again, Public Works Director, Planning Director are here to answer any questions. You can see the cost 184.

That takes in all of that and if the council directs us to do that when it comes back in June, that would be included. And we would still bring forward a balanced budget but we're looking for direction on that.

2:41 – 2:473 turns

ElectedPaula PerotteMayorProposed · by role2:41:05

I did not see any comparison. I'd like to know more financially on the two, well the one position that's net neutral numbers. You know when you hire somebody that's staffed they have the benefits and pension and all of that. When you hire a contractor how does it equal out that it's net neutral? But more importantly with contract I mean, is this something we're going to need for long term?

Or is this something we need now to catch up this permanent position or my thought is when you have a contractor it's easier to let them go. Their work is done their work is done if we have someone that's in the position of a staff member It's harder to, if there is an economic downturn. I mean, I want to make a couple points that I want to be able to help staff. I mean we have hard working staff so I don't want to be heard that I'm saying they don't need this but I do have concerns and I'm looking at ways to help them with their workload I don't know. I don't know what that might be other than hiring another person. Could there be, you know, things that tools to make them help them more productive? I mean, I guess that would be up to staff to be looking into what other things they could do.

I guess my concern is that, you know, I was here during the recession and it was really very difficult to let people go. And we chose not to but we also chose to freeze positions that were vacant. That ultimately makes it really hard on staff. And so I don't want to make it hard on staff. So, I have concerns about this and I would like to see the numbers before I would even say yes for these two positions. And I'm also wondering for the planning position, I mean for the yeah planning is to look at something we did years ago to have a temporary position that turned into a permanent position because we weren't sure we needed somebody long term And so it was a temporary position.

They were in-house already, and then it turned into a permanent position when we realized yes, we need this person. So I'm wondering if there's something like that that could be done? All just questions that I'm...

UnidentifiedUnidentified speaker 5Proposed2:43:51

Madam Mayor, I can start and then let Nina and Luke also jump in. Some of your questions are for me, some are for our finance director, and most of them are probably for the public works director. The cost comparison, the number you're seeing is loaded. So that includes all the costs for the person in the numbers you're seeing. So yes when we hire another person there's salary then there's benefits on top of that. There's administration in the public works position for example there would also be equipment possibly a new vehicle all that is taken into account in the comparison So that answers that first question in terms of the consultants.

If the position, I mean this is an idea that Public Works believes does save money. If they don't have the position we're still going to do paving projects and they will have to rely on consultants and pay them money to do that either way. And we'll do as much paving as we can but to the extent we're using paving money to pay consultants then that money's not going into paving on the streets. So that's the question here, and you're right. And then last point and I'll turn it over to them is this going to go on forever? That's a really good point with everything we do. And I guess I made the point that our paving project I think is more becoming systematic now than it was. Certainly at any point the council could change priorities but I just heard a couple comments made We have a program that's going to go on, but it is possible that priorities could change in the future.

And then on the equipment I'll just throw out, I know Nina is going to hit this one, but we did just buy a crack-sealing machine. That's exactly what you're talking about so we are doing those kind of things too. That makes us more efficient. We could contract out, but we decided by buying the machinery we could do that more effectively in-house. That's part of the entire pavement program. By doing crack sealing, pay me now or pay me later, you don't have to pave as much later because you maintain the streets and the water doesn't degrade them as much. So with that I'll let Nina jump in and I think you also had some questions maybe more financial that Luke can take.

UnidentifiedUnidentified speaker 13Proposed2:46:19

Mayor Parodi, I can speak to the construction inspector. So this past paving project we had six months of an inspector and that cost is anywhere from $200,000 to $300,000 a year and that's only for a six-month stent so if we have an in-house inspector they'll understand the process better they'll represent the city because their city staff and we also use The inspector full-time, so if the contractor is out there, the inspector's out there ensuring that everything's paved per spec. We're having material testing and all the components that come along with pavement including public outreach coordination.

And then the other six months that they're not physically inspecting, there's reconnaissance work they can do. There's a lot of encroachment permit they can do. So we have a lot of work to fulfill that time.

2:47 – 2:5317 turns

ElectedPaula PerotteMayorProposed · by role2:47:16

Okay, well that helps somewhat. I guess still the problem for me is there's a lot of uncertainties right now and I see people all around us letting people go and I know that's something we don't want to do so the thought of bringing more folks in, I'm struggling with that, I'll just be honest at this point in time with so many uncertainties. Council Member Kariakos.

UnidentifiedUnidentified speaker 8Proposed2:47:49

Thank you, Madam Mayor. I had some questions about the same topics that you brought up and maybe I can dive into them a little bit additionally. So I'm not sure if this is more for our city manager or for Mr. Rio but I'll start with our city manager. So how did we come... Let me ask it differently. What time horizon are we using to say it's net neutral? This is the second year of a two-year budget. Did we project net neutral for the upcoming budget year but no further, or did we project it out multiple years? And the reason why I'm asking health insurance costs, for example, have averaged about 12% a year.

So do we project this to remain net neutral for multiple years or just for the upcoming second year of the two-year fiscal year?

UnidentifiedUnidentified speaker 5Proposed2:48:45

Again, as long as we keep paving roads and that is an integral part of our program. And doesn't even have to be 6 million a year or some amount less but based on the numbers that Nina just provided I would say out into years because we're paying consultant fees she just threw out a number $200,000-$300,000 for six months of their time and that's not even full time during that time period and a full time position is less than Yes, costs are going to go up. Consultant costs are going to go up too and so as long as we keep paving roads the theory here is that this is something we can do more effectively at any time with an in-house inspector compared to paying a consultant to do that work

UnidentifiedUnidentified speaker 8Proposed2:49:31

for us. So consultant fees for this type of work have been consistently going up double digit escalator?

UnidentifiedUnidentified speaker 13Proposed2:49:41

The fees have been going up annually.

UnidentifiedUnidentified speaker 8Proposed2:49:43

Yes. But like at that rate?

UnidentifiedUnidentified speaker 13Proposed2:49:46

Whatever the CPI is, and they provide that to us. So we're paying about $200 an hour for an inspector right now for a consultant.

UnidentifiedUnidentified speaker 8Proposed2:49:55

Okay. Let's see here.

UnidentifiedUnidentified speaker 13Proposed2:50:00

I would also add that they charge overtime as well. Mm-hmm.

UnidentifiedUnidentified speaker 8Proposed2:50:05

I think that's an important thing to note. I think for me, I really appreciate where the mayor is coming from on this. I think for me the thing we also have to keep in mind it sounds like it's also a difference between the money coming from the overall department budget or if it's coming specifically from the pavement line item. Is that correct? Did I hear you correctly Mr. Nisman on that?

UnidentifiedUnidentified speaker 5Proposed2:50:36

I'll let the others chime in on that. We do use non-general fund sources for paving, there's multitudes of sources and so how those sources would be used for specific personnel costs, I don't know for sure but I'll let Mr. Rio

UnidentifiedUnidentified speaker 8Proposed2:50:51

chime in on that. Yeah, I'd be curious if there's a difference in having it be a funded position if that gives us more flexibility in terms of being able to access other funds?

PresenterJaime ValdezProposed · by introduction2:51:03

It would come from the general fund instead of a special fund.

CommentLuc Rio CityProposedself-stated2:51:06

Yeah, I would just comment that generally with personnel and the street maintenance it would be funded by general fund but it'd be... So let's just say hypothetically we did approve move forward the way it would work is actually we would not we would approve the position but it wouldn't be funded because we would still need to do the recruitment effort so the idea is that the budget stays still with pavement contractor until it's filled and then you reduce the budget on the contract and then it gets adjusted into the salary and benefit accounts

UnidentifiedUnidentified speaker 8Proposed2:51:33

Would we anticipate there being a significant period of overlap while the person, the new person gets up to speed training where you would need to have the consultant training them or would someone else be training them? That's probably more question for Nina.

UnidentifiedUnidentified speaker 13Proposed2:51:46

Council Member Kiriakou, we currently have an inspector that's been training on paving so the idea is that he would then pick up the paving projects and this new inspector would do encroachment permits.

UnidentifiedUnidentified speaker 8Proposed2:51:59

Okay. So I guess the one other potential benefit that I can see to doing this is it's a trade-off, right? So the trade-off is there's some risk. You run the risk if you ever got to the point of having to really do staffing reductions. You're really cutting into your core people. The other thing though I'd say Right now what we're doing is we're paying consultants.

And yeah, you have more flexibility there and you don't have to renew contracts and you can shift some things around but you're not going to necessarily have that same level of accountability to making sure that those payment dollars are being spent and managed at their utmost when it's someone outside the city they get paid no matter And so I'm sensitive to that and it's probably like a 51-49 for me, but I'd say right now I'm leaning towards it.

Especially since it sounds to me like it's net neutral for multiple years based on what trends have been. I will also just since we're talking about personnel, I will say I'm supportive of the housing. housing position, I think for where things are going in the city. I think that's a long-term need and I support that. And let me see did I have anything else on this?

All the positions, the two reclasses, are those being reclassed from salaried exempt to salaried exempt or any of them going from non-exempt over time eligible to exempt for the reclasses? I'm assuming they're exempt based on how they were depicted to me but I don't want to assume.

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2:54 – 3:0312 turns

PresenterJaime ValdezProposed · by introduction2:54:05

Well, it's right now it's $200,000 to $300,000 for six months and then essentially so is your idea that we're essentially getting six months free? That we would have paid that amount of money if we used a consultant. bringing it in-house, we get that extra six months of somebody doing other stuff outside of that six months.

UnidentifiedUnidentified speaker 13Proposed2:54:34

Councilmember Cason, that's one way to look at it. I see it as pavement being an annual item so they can do the field reconnaissance, determine what digouts we need to do, field walk, sidewalk replacement, ADA replacement. So it's a all encompassing position.

PresenterJaime ValdezProposed · by introduction2:54:52

Okay. The other thing is actually as far as the budget neutrality, not net neutrality if in fact we'll be paying over time maybe not the first year but when we'll do adjustments but when we're paying over time I assume we're paying over time a salaried position out of the general fund and that the offset that we're talking about is coming from a special fund so it wouldn't in practice operate, it seems to me as budget neutral. We would have an increase in spending in the general fund and available additional money in the special fund That could be devoted now towards more pavement, but we can't use if I'm correct on city budgeting. We can't really apply the special fund for salaries and expenses in the general fund.

CommentLuc Rio CityProposedself-stated2:55:58

Outside

PresenterJaime ValdezProposed · by introduction2:55:58

the first year.

CommentLuc Rio CityProposedself-stated2:55:59

Yeah, well so you know I thought I'd just clarify I want to say when I actually started with the city we actually used to charge salary and benefits due that to the street maintenance crew what ended up happening was that it became an auditing nightmare and it made it more simple to have direct funds special revenue funds directly go towards pavement and that's kind of why and then we increased the general fund over time for salary and benefits in the street maintenance program But the idea is that the budget, we'd have to look at it further where those contracts are exactly being paid out of. The general fund is paying the bulk of that annual pavement budget amount so that would be reprogrammed a portion of it.

And it was mentioned too about encroachment permits and so those are actually supported by user fees too. So there's a component of cost recovery there And then if that person also has, Nina would probably have to correct me if I'm wrong. But if there's like a capital improvement program that supported by special revenue funds we can technically also charge staff time and recover that way as well.

PresenterJaime ValdezProposed · by introduction2:57:06

Okay no that's good. I had some housing questions in particular So when this had come up before, the thing that had prompted my interest in additional capacity for planning was on the advanced planning. That there was an inability for advanced planning to get to anything outside of what was HCD required in essence and that the list of projects that were based on additional capacity was basically a graveyard for projects that will never go forward or never.

How would this proposed position that you're indicating would be in housing help on that side?

CommentTruck TouchProposed · by introduction2:57:53

Yeah, a good question. Thanks Mayor and Council Member Kasdan. As we talked about in the annual work program one of the themes was to really try to rebalance workload between the advanced planning division and the two other major divisions, our sustainability program and our housing implementation program. And we took steps to do that offloading items on that upcoming to-do list from advance planning onto the other two divisions In an effort to, you know, again right size our workload and give a little bit of relief to advance planning which is really tapped out especially with all these new legislative mandates. And then use all available capacity in the other two divisions.

And with housing implementation in particular, of course it typically deals with everything that's downstream of the permitting process including all the tenant protections issues and we're seeing that really come up in our community now as well as managing all of the de-restricted below market rate housing units, both existing and new. And that's a lot of work and we do think that with an additional person in that division will be able to...

We'll see some big marginal gains in terms of our output and work and we will be able to take on a lot of the housing element implementation work or at least some of that work, we can shift from advanced planning. So those were the themes that we touched on in our Annual Work Program discussion and I continue to believe that it makes sense. It also gives us greater depth in that division which I think is sorely needed. We happen to have a very highly qualified person in our Senior Housing Analyst role now But it's very specialized work, requires specialized knowledge. And if there were any personnel change there we would be it would be a very difficult task to find somebody to fill that position. So I think having a little more depth and a little bit more breadth in that division will really serve the city and its residents well.

PresenterJaime ValdezProposed · by introduction3:00:07

So would that new person therefore not be quite as specialized and be able to contribute for instance in terms of advanced planning, the additional? I mean after the rebalancing. After you do a certain amount of rebalancing and there's going to be limits to how much you can do I assume. Maybe I'm wrong, and it's really quite dramatic the impacts. But are we gonna see movement?

CommentTruck TouchProposed · by introduction3:00:37

Yeah, Council Member Kasdan, so I think that we would want to develop the same specialization, the same skillset in the new position but there will be enough overlap and enough crossover that the Affordable Housing Implementation staff can take on housing element implementation work that fits within their framework. And I do think we'll, I think we're going to continue to make progress and I do want to emphasize that every single year each of the divisions is cranking out a lot of work product Advanced planning, affordable housing implementation and sustainability. We're seeing that and I think by rebalancing the workload we will maximize the amount of new work that we can get across the finish line but just the approach that we've taken of tackling things serially has allowed us to get a lot done over time.

I expect that to continue and I think this will help us but I certainly, I have huge admiration for the staff of all three of those divisions and everything that they do. They accomplish a lot given the limited staff resources that are available.

PresenterJaime ValdezProposed · by introduction3:01:56

I mean to be clear you know what brought it up in the last meeting was frustration. It was frustration not that people in advanced planning weren't working but there wasn't enough capacity in advanced planning to be able to tackle even the top item that was listed in that list of things that had to be done or dependent upon staff capacity. And so I guess, you know if we're...I recognize and I certainly agree that housing has additional needs but I think there's also additional needs on the advanced planning side You know, I guess I don't want to be in the same position again in six months a year and seeing the top item there still sort of remaining. We, you know, I don't have to go into the whole battery storage situation but that's something that ideally should've been done and I recognize it's a capacity issue I just want to know that we're not going to be facing the same problems down the road.

CommentTruck TouchProposed · by introduction3:03:10

Well, I can only say Council Member Kasdan that I don't want to revisit the entire work program but we're doing what we can with the resources we have. We did add a position in advanced planning in the last cycle so we've already beefed up advanced planning. I do think that advanced planning there are limitations practical limitations on how much they can do at any one time given the limits of kind of the span of control and managerial attention.

And I think we will probably optimize our efficiency by adding more staffing resources to affordable housing implementation.

3:04 – 3:1614 turns

PresenterJaime ValdezProposed · by introduction3:04:00

All right, just two general questions. Mayor Pierotti's questions as far as what do we have with new hires? Do we probationary periods of a certain amount of time, how long are those? One year? Yeah. And do we have, in the past she had referenced the idea that a previous hire was sort of like on a five-year plan or something on the temporary?

UnidentifiedUnidentified speaker 14Proposed3:04:34

No I think it was a two-year limited term and that kept getting renewed so I think the position was a limited term assistant planner that was back in 2010, 2011. And

PresenterJaime ValdezProposed · by introduction3:04:47

are those still options? Basically to see what the

UnidentifiedUnidentified speaker 14Proposed3:04:53

landscape would look like. Those positions do exist we haven't had one in probably 15 years but...

UnidentifiedUnidentified speaker 5Proposed3:05:00

But would that be... It is an option.

PresenterJaime ValdezProposed · by introduction3:05:04

All right

UnidentifiedUnidentified speaker 5Proposed3:05:05

thank you.

ElectedPaula PerotteMayorProposed · by role3:05:06

Mayor Pro Tem Smith.

UnidentifiedUnidentified speaker 10Proposed3:05:08

Yes, thank you. I appreciate this discussion and it's already answered or informed some of my thoughts so I want to thank the council members for their thoughtful questions. I do want to just note on that question, you know, I know it can be really difficult to recruit for a time-limited position. So I just wanted to highlight that as something to consider and I also appreciate staff's timing on this in terms of, you know, I know initially like this wasn't brought forward and sort of we have a little better sense of where things are And I know that staff wouldn't even have brought this to our attention without some very careful thinking.

So, I appreciate that. One question I had about the planning position, so it is really sort of addressing this workload question. I notice it's not necessarily for Director Imhoff. It's not changing any of your direct reports in terms of the numbers reporting to you directly. Is that correct?

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CommentTruck TouchProposed · by introduction3:06:23

Yes, that's correct.

UnidentifiedUnidentified speaker 10Proposed3:06:23

Okay. But yeah, I think about things like even like a staff member being able to take vacation Right? And then that person, you know, can that person's work continue on to have a there are certain inefficiencies that come with being a one-person department in that sense too. I think in light of this discussion and from what I hear of the careful and thoughtful position, you know, I'm supportive of the changes.

And, you know, I don't know if in just a few weeks if there will be any much more financial information but based on the thoughtful discussion I am generally supportive. And then on the CIP, my understanding I realize this is a pending item but is it correct in my understanding that it's sort of a shift? In terms if it's not necessarily a new cost but it's a shifting of budget. Is that correct?

UnidentifiedUnidentified speaker 5Proposed3:07:32

»» I'm sorry. Council Member Smith are you talking about the one-time funding, the $100,000 recommended for the low Thank you.

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UnidentifiedCity ManagerProposed · by role3:07:57

Council Member Reyes-Martin. Thank you, this has been a really good discussion and I've appreciated everyone's comments. I'm gonna make an assumption and so please correct me that one of the reasons staff is recommending or suggesting particularly the personnel changes because on the following slide we do show a net operating revenue. So that I understand the fiscal year 26-27 where you have mid cycle with pending items, that's what this looks like if we say yes to all of the things on that pending item slide. Am I following that? Okay, so my concern with that and I appreciate the discussion and I'm gonna focus on the positions about the rationale for the positions it's not that I disagree with any of the rationale but my concern is that you know we just spent the better part of an hour and a half talking about all the Warning signs and concerns we have about the budget.

And so that does concern me quite a bit about making ongoing cost commitments right now. So that is something that I think, I'm glad you're bringing it at this meeting so we have some time to kind of think about it before we get to the final. So I just wanted to state that. That does really concern me. I would actually think on the timing, the beginning of a two-year budget cycle is something I'd want to think about like does it make sense to consider new positions now or when we get to a two year cycle?

My other question is, you know we just went through all of the department work plans and council was asked to be real disciplined about matching the work plans to the staff. And so my question maybe around process is When there was kind of an evaluation of considering bringing to council a recommendation on new positions, and I hope the answer is yes. You kind of looked at what is the need everywhere?

Where do we want to recommend to council? Because there were quite a few departments that had long lists of things they want to get to, that we all agree are really important. But there's only one that's presented here tonight. So I think for if this does come back as part of the final recommendation, I'd probably want to know between now and then or even in that presentation kind Why this one over in any of the other departments?

There was one other thing I wanted to mention. And just like does then my question then there is, if we add a position here Does that mean, maybe this is along the lines of what Council Member Kasdan shared. Like what does that mean for the work plan and other departments? And again I think it goes back to like the bigger discussion that we had about a lot of things on lots of different work plans that I think we would want to have moved up.

And so if they, if we do have available budget Which I would rather not eat into what's already a pretty small net operating revenue. But if that is something the Council wants to entertain, I do have a question about like what's the best process for that given we did just go through a really long process with all the work plans on what's the next big need or does it make sense to wait until Thank you, Mr. Chair.

What's presented in the budget, you know, there's a lot of asterisks around it. We talked about deferred maintenance, we talked about TOT, things outside of our control with the economy and I went into this budget process thinking we were going to need to really hold the line on where we are now so I do have some concern about adding ongoing costs with positions. Thanks.

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UnidentifiedUnidentified speaker 5Proposed3:13:06

Madam Mayor, I can answer the first part of Council Member Reyes-Martin's question about kind of the process and decision making process internally on new positions. And Luke, I don't know if you can quickly flip to it. He did go by it rather quickly but we did at one point show the four or five year trend of new positions. I think it was by department so if you could find that, that would be great. So yes, to your question, it is taken within the context of the entire organization And there were requests from other departments that were not approved by myself.

So there were other ones, and yeah, I don't know if it's a perfect science but we are receiving feedback throughout the year from the community, from the council. It's not just the work plans but sure it does culminate in the work plans where we are getting signals on priorities and values and where the needs That said, yeah if we go back to each of the work plans there were more things than we could get to in every one of the departments. So then what do we do? And so yeah I think you know we have to take all those signals and I have to look at the requests from the departments and have discussions with them and make those calls. So when you look department by department I will not say that it's like this equity lens, okay if we gave one to one department we have to do another department.

It is based on what the council directs us, what the needs are and values are. That said as I pointed out they all have needs so there is kind of a general argument that in equilibrium we should grow together as an organization. We have needs in planning, public works, neighborhood services, parks. And it would not make sense for one department to be growing because we're getting signals that, hey parks are the most important thing. We need more parks people. We need more parks people. Because we know that the council and the community is consistently also telling us that these other things, these other areas are high priorities like pavement and so forth and so on. So when you look at the breakdown here and you kind of look back at where the growth has been And we're again those signals from the community, from the council, from ourselves have been the feeling I speak speaking to that not so much the public work one now that was based more on an analysis of cost neutrality.

But on the planning one that was what went into some of my thought process if I were to compare that to another anonymous request I may have received from another department it felt to me through conversations with you all and the feedback we got during the work plans that the highest need if I, if we had room for a position was in the housing division of the planning department. So yes it's all in that context of the entire organization.

3:16 – 3:228 turns

ElectedPaula PerotteMayorProposed · by role3:16:15

Council Member Carioca.

UnidentifiedUnidentified speaker 8Proposed3:16:16

Thank You Madam Mayor. I've really appreciated all the comments tonight Some of the recent ones in particular I've really appreciated as well. You know, I think that if you look at what are the things that we're wrestling with publicly? What are the things that we're wrestling with in closed session? What are the things that we are beginning to hear in public comment You know, I think housing is something that's not going to go away.

And so for me the risk of being under resourced is scarier than being over resourced and what I'm wondering is there a way to perhaps find a compromise here? This is the second year of a two-year budget It's not like a light is going to switch on at this new person's desk on July 1st. You've got to create the position, you've got to make sure it comports with all the rules, you've got to get the specs, the job description, all of those things, get it approved, get it posted, recruit, hope that the first recruitment is successful and you don't have a failed recruitment and you've got to go back out.

Is there a chance for an internal promo? It sounds like this is fairly specialized work, so probably not. So you're probably going outside. So I mean, I think there's a non-zero chance the position won't be filled until November, December. And what I'm wondering is if you look at it from the lens of six full months of the position, and I'm talking specifically about the housing one, is there an opportunity during that first part of the year As we're wrapping up this budget for them to provide support as they're getting broken in by the planning department to provide some support to some of these other issues that like Councilmember Kasdan was raising where there's just we're having some trouble getting to some things.

Is there a way that this position, as they're getting their feet wet, as they're breaking in learning the job learning the city? Is there a way that they can be a little bit more of a Swiss Army knife and provide some support to advance planning as well? That would make me more comfortable with this. The other thing I'll say, and this is more of a broader comment, I was going to save this for the end but perhaps the end is near.

Just because I'm voicing tentative to full-throated support for these changes depending upon which position we're talking about I don't want that to get looked at through a vacuum. When we come back, what I would like to see is I would like to see some analysis of these new positions are essential and I also want some analysis of are any of those seven or whatever the number was vacant positions Also essential, are there any of the vacant positions that we could now hold off on filling?

And what would be the cost benefit to filling those vacancies versus these new positions. I'd like to hear from staff. We need them all desperately or we need these ones more than those ones. I would like to have a broader conversation that looks at all of that in its totality rather than just Well, we got some vacant positions and we have recruitments happening. And we're just gonna assume that that should just go on. I'm not even conscious of what the vacancies are right now. I'd like more information on what they are. Are they essential?

So I think for me, I'm inclined to support the staff recommendations here. I do also, just since we're going through the list, I do wanna voice support for this study, for Lake Los Carneros, for the footbridge And on that, I think you have kind of like similar with the library. By doing this we're increasing the likelihood that we can get some buy-in and some community support to fully take advantage of the community's interest in getting to a fully realized and completed footbridge. So I think that would be money that's well spent but I would like to see, getting back to these positions, These new positions contextualize against the vacant positions and some kind of a recommendation from staff of perhaps we could hold off on filling these two for six months or whatever it is.

Just so we can achieve some cost savings that would balance out some of these new positions, or reclassified positions, or in one case cost shifted position. So those are my comments.

UnidentifiedUnidentified speaker 14Proposed3:21:26

Yeah, sorry Council Member Kuriako. I did get confirmation from Ms. Jennings that the current vacancies as of today is 10. That includes one part-timer and then another one that just had a recent departure that I didn't remember to factor in

UnidentifiedUnidentified speaker 8Proposed3:21:43

so... 9.5 FTE

UnidentifiedUnidentified speaker 14Proposed3:21:45

perhaps? Ten positions,

UnidentifiedUnidentified speaker 8Proposed3:21:47

9.5. So I'd like more information on those.

UnidentifiedUnidentified speaker 14Proposed3:21:52

Sure. And just so you know, obviously those numbers are constantly in flux.

UnidentifiedUnidentified speaker 8Proposed3:21:57

And one other thing in particular I would like to know is what is the status of each of those recruitments? Because we've already advertised and we're an interview and second interview or there's an offer pending. I don't want to upset the apple cart too much but if we're very early in the process, I'd like to know.

3:22 – 3:298 turns

ElectedPaula PerotteMayorProposed · by role3:22:17

Mayor Pro Tem,

UnidentifiedUnidentified speaker 10Proposed3:22:19

Smith? Yes. Thank you. Yeah. I appreciate all the comments. You know, I'm hearing from our finance director in terms of where we're positioned in terms of. I know I wasn't on council during COVID but there's a set of identified strategies We have our contingency fund You know, is there. We're in a much better position than other jurisdictions in that regard and I think as a city we should be very proud of that. And I agree with Council Member Kiriakou in that there's risk both directions and that there's also a risk that comes with being too cautious in terms of just staff burnout You know, turnover and some of the inefficiencies that come with like using consultants and things like that.

On balance, I certainly think any more information that enlightens this discussion before June is helpful. But overall based from at least as it relates to the personnel question, I'm generally supportive. I did want to note that I am not sure if we have gotten through the whole presentation. Okay. So I just wanted to check in with the mayor on that piece,

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UnidentifiedUnidentified speaker 8Proposed3:24:21

okay?

ElectedPaula PerotteMayorProposed · by role3:24:23

Council Member Kasdan?

PresenterJaime ValdezProposed · by introduction3:24:24

Yeah for when we return I'd like to see about the rebalancing of the workload that Mr. Imhoff described to see what that would look like how it would appear. Councilmember Smith mentioned that sometimes hiring for two-year positions, something like that can be a challenge. And we've certainly found challenges in hiring people for engineer positions and I guess I'm wondering if the situation is the same for analyst positions planners?

IT people it's easy to find right now, but if we wanted to use a two-year position for instance reflecting concern about the economy. Would it be, you know, would we be able to hire? Is this the sort of position that we'd be able to hire or is this the kind of position that, you know, we would just put out an announcement and there'd be no responses. So really just for our HR people to get a read on that.

And I guess I had one other question in that to the extent Could it make sense, could it be possible that the new planning person were 50% housing, 50% advanced planning or something like that?

UnidentifiedUnidentified speaker 5Proposed3:26:05

It's possible. We would not recommend it. I don't think it's a good strategy to have an employee report to different bosses although

PresenterJaime ValdezProposed · by introduction3:26:12

Yeah, I hear you on that. And you know, I recognize that that's true but could they be able to at least be able? Could they do work in two departments apart from the reporting and so forth? We're a small enough agency, I would think where it's not like they're going over to another, nobody knows what they're doing and so forth. Anyway, think about it. I would appreciate it.

ElectedPaula PerotteMayorProposed · by role3:26:53

You know, I do appreciate everybody's comments. And although I may not agree with them, I do appreciate what they're telling us and I do really support staff and as I said before how can we help them with their workload and be more productive with less? I've always said that. How can we do more with less? By that I didn't mean letting go staff but having other ways to help them out So, but I also am very concerned about the economic situation and where we're headed. And I guess for me it's, I'm still suffering from what happened. I can't remember what year the economic downturn. I would think I was brand new. It was 11, 12, 13 somewhere in there.

And it was bad. And we had to make some really, really hard choices and it was really hard on staff. So I don't want to set us up to have to do that again so that's where I'm coming from. And I know that you know Mr. Rio in your reports you've always said we need to stay status quo and be aware and you're watching that carefully I have no doubt but the idea of At this time with the uncertainties, I'm not in favor of supporting the two positions. I am in favor of supporting some seed money for the Los Canarios Bridge.

But I'm just struggling with this and maybe over, I will definitely when the motion is made to move this work plan forward. I wouldn't hold it up but I would have to have some more time to really think about the two positions that we're proposing I have great concerns, and the one thing that I hadn't thought about that Council Member Reyes-Martin brought up was that there were a lot of needs in other departments. And we're just looking at these two for now.

That kind of troubles me a little bit, and also the fact that this was nowhere in the report. It was only on a slide. I would've liked more information. You know, it was a little disappointing in the report so that I could've had Time to talk about it, but it was just on a slide. And I even asked the city manager did I miss something? It's a lot of reading in there, but did I miss? But no, it was just on the slide. So that's where I'm coming from at this point, but I think we should probably move forward and finish this item if we can.

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3:29 – 3:355 turns

CommentLuc Rio CityProposedself-stated3:29:46

All right, let me see where we left off at slide 29 here. Give me one second. Okay yeah so what was just kind of mentioned earlier, so we did kind of do this rough calculation factor I'm just assuming it you know when we do bring it back it would somewhat get the numbers get a little fine-tuned more um it does like that those pending items are fully annualized so it's recognizing the fully annualized impact assuming like the positions are filled July 1st The other thing that was kind of mentioned about the vacancies, I just want to point out too. One thing that's kind of not really talked about but it's something that finance is looking at actually is the use of interns.

We found that there's two planning interns that actually haven't been, one hasn't been filled for over a year and one for about two years. Additional 40,000 in savings if we were to reduce those but I'm gonna go ahead and move on future budget challenges here potential unknowns risk and challenges so again what's kind of been shared here just that elevated economic uncertainty stuff going on with the state budget. We did you know Governor Newsom just released the May revise and so we're still understanding the potential impacts on that Something we're paying attention to is that potential sales tax on software.

Federal policy, administrative changes again, litigation impacts, unforeseen costs. I do want to note that what's not as transparent here but will be in the final is that we did recommend beefing up our litigation reserve just again one time funds 200,000 increase. I did want to point out fiscal issues under review, so again there's these kind of like lingering things that are you know looking ahead. Again Heritage Ridge Park when it does you know open and it transfers the maintenance operations to us the other special revenue funds with the library I don't know if I included in the slide here, but part of that may revise. One of the things I really do pay attention to is the re or the updated estimates with gas tax and SB1 road maintenance funds.

So from my understanding actually got released last night so we're going to take a quick I believe it's just minimal adjustments there. But we bolded here future share of contract costs because that's kind of like the moving number here, that can you know kind of throw this entire budget off depending on where it gets finalized at but again we do have those cost reduction strategies And let's see, I'm going to move on. Future budget balancing strategies. So again we do have a couple of major items that are coming aboard that's going to help offset costs.

That DIF nexus study update part of finances work program and working with the departments. We're going to be updating our cost allocation plan and comprehensive user fee study One of the goals on that too is also to come up with probably what we call kind of a certified indirect cost rate proposal plan, that you can use that rate and charge against federal funds or any other type of grants at a higher admin rate. Tax audits, that's still in process right now.

Expenditure reduction, so again as a reminder, we did do that temporary lump sum payment we were doing to the housing and lieu fund and then also just continuing on some of that deferred maintenance Midterm long-term solutions so again one of the work program strategies to is also invest in economic development efforts that it also includes funding Working with developers and ensuring that we get our full tax allocation on sales tax and transaction use tax. We have that fee study update that's underway with Public Works, that's evaluating the solid waste fees, street lighting and stormwater.

And then again evaluate potential revenue enhancement options to the general fund if council directs us to explore that. Then also other financing tools that are out there, special financing districts. I did want to note again major grants are consistently being pursued to help offset costs But with that said, key takeaways. General funds is enough to support what's being recommended today and again with capital we wanted to ensure that the big six projects are fully funded and they get completed so that's the priority there.

It was mentioned about funding reserves for maintenance and liabilities specifically with our facilities and so that's what we're looking at But again, like I said it's we have a balanced budget. It's based on what's being recommended today and if anything can throw it off in the long term. We do continue to budget and estimate our revenues conservatively. We do a couple of different scenarios. We do a couple of back testing.

What I mentioned too like yeah, I studied the Great Recession on what happens city finances and we did see those dips temporary dips but it was kind of a unique A situation going on for Goleta because we also had hotels being built coming online at the same time. I believe they raised the TOT tax rate in 2012, went from 10 to 12%.

UnidentifiedUnidentified speaker 8Proposed3:34:38

You also had the RNA shifting to not having to give away TOT?

CommentLuc Rio CityProposedself-stated3:34:44

Yep.

UnidentifiedUnidentified speaker 8Proposed3:34:45

And the RDA went away?

CommentLuc Rio CityProposedself-stated3:34:47

Yep a lot going on there. So council feedback, we kind of talked about this but just some guiding questions. You know, to create capacity for new priorities and increase funding levels in current priorities. Are there any specific operating or capital items council is willing to reduce or defer? Does council support the personnel request of the pending items at approximately 180K? Does council support staff recommendations on the overall funding priorities for this mid-cycle update? And then is there any other feedback?

So that pretty much sums it up. We do have additional slides for some other additional information if council wants to look at. Yeah, I'll leave it at that.

3:35 – 3:4226 turns

ElectedPaula PerotteMayorProposed · by role3:35:28

Thank you. Okay, Council Member

UnidentifiedCity ManagerProposed · by role3:35:30

Reyes-Martin? Thank you, I have a quick question on the future budget challenges slide. What is the date for the start of the new sheriff's contract and animal services contract? And will we know the cost for those by our next meeting? Because given what's going on with the county, I'm real nervous about those two.

CommentLuc Rio CityProposedself-stated3:35:56

Yeah, great. Great question. So for the sheriff contract, I believe the terms June 30th, 2027 and we have the option to extend it or renegotiate animal services. I believe it's the same time period.

UnidentifiedUnidentified speaker 14Proposed3:36:13

The Sheriff's office, we have the ability to do three one year term extensions as well.

UnidentifiedCity ManagerProposed · by role3:36:18

But so so we're not anticipating either of those contracts to increase in this next fiscal year, I think is my question.

UnidentifiedUnidentified speaker 14Proposed3:36:27

I don't think we could say that without knowing what the DSA contracts do.

UnidentifiedCity ManagerProposed · by role3:36:33

So maybe help me understand that. So we would see higher costs with that contract pending their bargaining unit increases? Is that correct on that one?

CommentLuc Rio CityProposedself-stated3:36:46

Correct, our current assumption assumes the MOU increase is status quo at 2.5%. There's a small buffer I built into what do you call it in the forecast of about, so instead of assuming 5.28% escalator we assumed a 5.5% escalator.

UnidentifiedCity ManagerProposed · by role3:37:06

And we're just not sure when we'll know about that.

UnidentifiedUnidentified speaker 14Proposed3:37:11

Yeah, it's probably fairly likely that it will be after budget adoption is what we're hearing possibly in July. But yeah, we don't really have much.

UnidentifiedCity ManagerProposed · by role3:37:21

And the animal services contract, we're kind of locked in for this next year and then that's

UnidentifiedUnidentified speaker 14Proposed3:37:27

not

UnidentifiedCity ManagerProposed · by role3:37:27

until next year?

UnidentifiedUnidentified speaker 14Proposed3:37:28

Actually Shannon's here to answer that so I'm not very good at it. Can't hear her so go for it.

UnidentifiedUnidentified speaker 15Proposed3:37:35

For the animal services contract it was a five-year contract and we're coming into the last year of the five-year contract. And for fiscal year 26-27 it will increase by about $15,000 so that was set within the contract and that's already

UnidentifiedCity ManagerProposed · by role3:37:50

budgeted. Anything beyond that we'll see that next year when we renegotiate? Correct yes thank you.

ElectedPaula PerotteMayorProposed · by role3:37:58

Councilmember Kessin?

PresenterJaime ValdezProposed · by introduction3:37:59

Yeah Oh, I know. Pavement. So we have $6 million right now for pavement in the budget and the total cost based on our pavement condition index is how much?

UnidentifiedUnidentified speaker 13Proposed3:38:28

Council Member Kasdan, I believe Luke has the slide from last year that we can share.

PresenterJaime ValdezProposed · by introduction3:38:36

So.

UnidentifiedUnidentified speaker 13Proposed3:38:38

So it's approximately 18.9 million a year to maintain 60?

PresenterJaime ValdezProposed · by introduction3:38:43

To maintain 60, and our actual pavement condition index is 67 I believe. That's correct. So we're $18 million or 12 million, we have six million in so we're about $12 million below the target at the amount we would need to maintain our current road What would, for the amount that we have right now, about $6 million, it looks like that would bring us down to what PCI? What pavement condition index would be there for $6 billion?

UnidentifiedUnidentified speaker 13Proposed3:39:23

That shows the red line.

PresenterJaime ValdezProposed · by introduction3:39:25

Okay, and that's about a 43. If we continue that we would be heading to a 43 over time? That's correct. And what is the status there as points along that trend, along that line you know somewhere it's minor where you invest and it's a minor amount and somewhere it's a major amount of investment in other words how deep a hole are we digging by underfunding this?

What is our future costs going to look like in terms of that we're bringing us down to points where we're gonna need major repairs on everything.

UnidentifiedUnidentified speaker 13Proposed3:40:05

Well, I think we're already at the point where we have streets that need major repairs. So I can speak to what Public Works is doing through value engineering. We're doing more with our dollars and extending our pavement life. And from my perspective with the fundings that we have and the constraints we have, we're doing...

PresenterJaime ValdezProposed · by introduction3:40:26

Well, I guess where I'm coming from with this. I understand $18 million is not something we can find in the budget. get to, you know, if we just cut this or don't fund that, you know, we can come up with $18 million. R&A would help. That might do it giving us back the R&D money. So but what I—this is a question—I mean we discussed revenue enhancements back in Whenever it was February or something like that. But at the time, we were looking at that in isolation without kind of a context about that here's a need that if we don't fund it now our costs escalate and not only escalate but they escalate sort of multiplicatively or exponentially.

So we dig a hole, and at some point we can't get out of it. And so I guess what I'm thinking is that the only way out of this at some point is really if we're going to look at some sort of, I think would have to be a special tax of some kind. And I'm not proposing that this would be for this fall. It's too late in the game for that. To initiate that, to recognize this can't be a status quo of funding it at 6 million and saying good enough. That is not a stable outcome, right?

I mean for all the value engineering we just if we move to a 43 PCI that's a bad state

3:42 – 3:4819 turns

UnidentifiedUnidentified speaker 13Proposed3:42:21

I would like to add that by doing value engineering, our PCI was at 58 last year and this year we brought it up four points.

PresenterJaime ValdezProposed · by introduction3:42:32

In other words when you say you're using value engineering does that suggest this chart is no longer accurate? It's

UnidentifiedUnidentified speaker 13Proposed3:42:39

not suggesting that but this chart is to do a 20-year paving ultimate project when we're doing paving. We're doing five to 10 year paving projects at this point so we can do more with the money we have.

PresenterJaime ValdezProposed · by introduction3:42:53

But in other words, this chart should be showing us the impact of how much of what we spend in terms of the pavement condition index and to the extent it should incorporate or assume that we're using value engineering. If it's not then it's inaccurate and I assume it's not inaccurate

UnidentifiedUnidentified speaker 13Proposed3:43:13

This doesn't show value engineering. This shows the 20-year life of a pavement project, so we do the value engineering that'll get us five to 10 years.

PresenterJaime ValdezProposed · by introduction3:43:22

Could I see that? I would really like to see what the trend line would be for in essence kind of six to $10 million something like that or six to $12 million If we are applying some sort of value engineering, what does that put us at? Does it put us closer to a 60? You know if we're doing that like you said that's 58. If that's the case I'm much happier. I mean that really would be really important that if we are actually Because of the engineering that you're doing, the value engineering we're actually dragging up. This line is not telling the true story or the whole story.

Are we able to do something like that?

UnidentifiedUnidentified speaker 13Proposed3:44:13

We can request PEI to put something together.

PresenterJaime ValdezProposed · by introduction3:44:16

Okay and I guess one other thing then along that, we have still not received money from the federal government associated with San Jose Creek And that we're hopeful, as we have been for at least a year now, that when that comes it'll free up in essence some $11 million of which some could be applied to pavement. Yes? We are hopeful that we're going to receive that

UnidentifiedUnidentified speaker 5Proposed3:44:50

funding. does not assume that a grant at this point.

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PresenterJaime ValdezProposed · by introduction3:45:07

Okay,

UnidentifiedUnidentified speaker 5Proposed3:45:08

and then

PresenterJaime ValdezProposed · by introduction3:45:09

I mean as we know if that happens money that we are using out of the general fund right now then becomes available to apply to other purposes correct? I probably didn't state it quite right but

CommentLuc Rio CityProposedself-stated3:45:24

yeah it would be we would have to evaluate to make sure everything's fully funded and then do some what we call like revenue swapping fun swapping Okay.

PresenterJaime ValdezProposed · by introduction3:45:37

Well, that was helpful. I appreciate that. That's great.

UnidentifiedUnidentified speaker 8Proposed3:45:43

Thank you.

ElectedPaula PerotteMayorProposed · by role3:45:44

Councilmember Cariocco?

UnidentifiedUnidentified speaker 8Proposed3:45:46

Thank you, Madam Mayor. Actually those last two questions were questions I was going to ask just a clarification. That grant assuming it does at some point come in The way it's administered is we don't just get a lump of money, right? Like we submit expenses and then we get reimbursed. So to the extent that we get that money it would be drips and drabs and it would probably be over multiple fiscal years.

Probably I

UnidentifiedUnidentified speaker 5Proposed3:46:19

would say probably two. That's how I envision it Nina or Autumn can probably answer that better but yeah I would assume Any benefit is not gonna be like this one-time payment and it's not gonna be for potentially two to three years. The San Jose Creek project is a long term project, it's reimbursable and then so any impact of the paving budget maybe seen kind of increment or any other choices the council makes when you see the subsequent budgets, it'll be incremental.

UnidentifiedUnidentified speaker 8Proposed3:46:55

You know, I think we didn't get into these pavement problems overnight. We're not going to get ourselves out of them overnight. I was just looking back at old slides from old budget presentations and I was looking at the 2020 meeting and looking at the CIP and we had 1.7 million in the budget that year for pavement and none of it was general fund. That was just the situation we found ourselves in at the time.

We were balancing a lot of competing interests at that time and we made some decisions. And, you know, we go forward. I'm certainly intrigued by the thought of a special tax. I'll be looking very closely at what happens in Lompoc because they're proposing something for the June ballot that would be restricted to roads and paving. And so if that's successful, that's something I would be interested in revisiting not for this year. I don't think we could do it this year in time but for future years that would certainly be something I would be open to looking at in future years if we see some examples locally that there is support for that kind of tax because you'd be able to find... There'll be a very obvious purpose and nexus for it I want to make sure there's really good oversight over how that funding is spent, perhaps like a public committee or something.

Maybe a transportation committee.

3:48 – 3:5414 turns

UnidentifiedCity ManagerProposed · by role3:48:27

Thank you. I wanted to say that I think, you know, Public Works is doing absolutely the best they can with the budget that we give them for pavement and I've definitely seen that in the last few years with all the creativity and diligence. You're really stretching those dollars to the max and it's definitely appreciated. And I think we all acknowledge that $6 million a year is just not going to cut it But what I think where I have some frustration is wanting the plan for how we as a council are gonna grow that annual commitment.

I agree that it's, we can't do it overnight. We can't go from six to 10 in one year but how do we get there? And so in previous discussions on budget I've said anytime we have extra money it should be allocated to pavement So that we can gradually build to a higher annual commitment and that gives breathing room for the budget and all the associated work plans to kind of get used to that because I don't think we can do it from one year to the next.

So that is a big area of frustration for me. It continues to be the number one thing I hear from my residents in my district, I'm sure everyone else does too and I think that's really you know a discussion for the council and how do we get there? How do we increase that $6 million to a little bit more every year Until we get to an amount that keeps us from being on a path to 43. Because I've been here at this dais for four years now, and we're stuck at the six million. And we are adding one-time money whenever it happens, and that's great.

But I think we need to figure out a way to increase that base amount.

ElectedPaula PerotteMayorProposed · by role3:50:29

Mayor Pro Tem

UnidentifiedUnidentified speaker 10Proposed3:50:30

Smith? Yes. I guess just to respond to that comment And this is my first mid-year cycle review, but yeah. I guess at the same time, I haven't heard support either to explore revenue generating strategies at this time. So or support for like major cuts so until and if and when that time comes now, so not hearing that as we look to the next two year budget cycle so maybe starting next January Maybe it's a good time, we'll maybe have a better sense of where things are in the economy.

You know, maybe that's a good time where we can continue to execute on this current budget and sort of explore options from there. And I believe we also didn't set it into any work plans either so just being mindful of all of that When sort of this question has come up before. So I think staff would need direction if we were going to make any changes in that regard.

ElectedPaula PerotteMayorProposed · by role3:51:49

Yeah,

UnidentifiedUnidentified speaker 10Proposed3:51:51

well,

UnidentifiedUnidentified speaker 8Proposed3:51:52

I mean, I think I'm the only person that said this so maybe in terms of giving staff direction, this would go further. Is there support to have staff come back and look at the nine and a half FTE that are vacant positions? And make an assessment of whether or not we need to fill. Some or all of those. Or am I the only one? Because in terms of cost reduction strategies, that's a restriction on future spending. That was something I suggested but I

ElectedPaula PerotteMayorProposed · by role3:52:23

didn't hear anyone. I'd be okay with looking at it. I'm not saying I would choose to not fill those positions but I'd be willing to take a look. It's good information to have, I guess.

UnidentifiedCity ManagerProposed · by role3:52:38

I guess I'm okay with that information if the broader question is for staff to bring forward options for increasing the allocation to pavement and that being one of the areas we could be looked at. So I'm trying to find what the tie is to your question, back

UnidentifiedUnidentified speaker 8Proposed3:52:57

to pavement. I would say pavement but then also other positions because we talked about these other positions that staff wanted and I think it's also important to mention that you know staff didn't just come up with these ideas in a vacuum there were comments that were made during the work plans about some things that we weren't getting to and I think staff was being responsive to that too at least to an extent with a couple of these positions

ElectedPaula PerotteMayorProposed · by role3:53:26

Did we ever ask for public comment? I just realized that. I think we should.

UnidentifiedCity ClerkProposed · by role3:53:34

Thank you, Madam Mayor. If any attendees on the Zoom webinar wish to speak to this item please use the raised hand feature and I will call upon you. And Madam Mayor have no public comment

ElectedPaula PerotteMayorProposed · by role3:53:53

Oh, okay. So you're looking for council feedback on these four items? Is that correct Mr. Rio?

CommentLuc Rio CityProposedself-stated3:54:00

Yeah and any other feedback.

ElectedPaula PerotteMayorProposed · by role3:54:04

The only one that I have... I'm not sure I support the, I wouldn't hold up this work plan but I can't commit to saying that I would support the personnel request for the new employees. The new staff at 180,000. But others I'm fine with.

3:54 – 3:599 turns

PresenterJaime ValdezProposed · by introduction3:54:36

So do you have the feedback, you know that have been given along the way? Are you guys good?

UnidentifiedUnidentified speaker 5Proposed3:54:42

Madam Mayor, Council Members. So it would be nice to get definitive feedback whether the council supports that or not but I am sensing that

ElectedPaula PerotteMayorProposed · by role3:54:48

the

UnidentifiedUnidentified speaker 5Proposed3:54:50

council's mixed on that so that's enough we can live with that for now but just a reminder that when we come back it's June 19th there's not a lot of room to have a subsequent budget meeting if they're still I'm Luke would have to make the adjustments and we'd have to approve the budget with them. So, we can bring it back as an option not to have the positions, an option to have the positions. We could even do the compromise. I heard a suggestion of a compromise. Our recommendation if we were going to do something like that would be to make it easy, do a half year. I heard some suggestion from Council Member Cariaco on that. Half a year you just take the net cost $184,000 divide it in half If we were to start those positions January 1st, they would be essentially half the cost for that year.

I heard a suggestion to, I mean, we can bring that back on June 19th but we would need a decision then so you could approve the budget. And same thing with the vacancies, if that's part of it. I mean yes we heard direction on what would be helpful for council to make that decision so we'll do our best to bring that back and we'll bring back a vacancy list that is vacant positions as of that moment in time or as was pointed out some may already be in the pipe of being recruited So the council can then see that list.

But what I'm hearing is there would be a discussion about whether to potentially unfund those positions, to use those funds for something else. That's quite a discussion to have the night that you're being asked to approve the budget.

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UnidentifiedUnidentified speaker 14Proposed3:56:47

And I would just add that it's all possible, but it may not be that practical with the 30 days from here to kind of put everything on hold that we might want to go forward with because we don't know for those vacant positions. So I understand what you're saying about if some there's an already in a job offer phase or interviews are scheduled, but again, HR is very dynamic so it'd be very helpful either play conservative or not and get better direction tonight. So, I mean we're gonna proceed as if we're filling those positions because those are the positions that we've had and you know we're struggling with to pick up the slack with the other employees so I don't know if that's fair or not. I just want to make sure I'm clear and don't mess this up.

UnidentifiedUnidentified speaker 8Proposed3:57:39

I hear that. I'll just say not knowing what those positions are Taking a while to find out how many of them there were tonight, it's hard to really respond to that right now because I don't have the information. I need to respond to that.

UnidentifiedUnidentified speaker 14Proposed3:57:56

Okay well we'll do the best we can of where we are in the process because we also have do it like the week before with the packet and then it goes out and then you discuss it the following week

CommentLuc Rio CityProposedself-stated3:58:07

I had a quick clarification question. So that 180K only reflects the cost of portion of the reclass and one new position because the public works inspectors is not even factored in that number because it's net neutral, so is that a support part of that or is it purely based on that number?

UnidentifiedCity ManagerProposed · by role3:58:38

Given all the questions we've had tonight, if you're needing a yes no on that tonight then I'm going to agree with the mayor on being a no. Because it wasn't...we don't have an analysis in front of us it wasn't in the staff report. In fact the staff report outlines no increases in FTE and so the only thing that shows this decision is the slides tonight, which is still part of the public record but I You know, I think we asked a lot of questions. And so I would have been I Would have wanted to kind of digest the information and then have that decision But if you need to know right now Then I would be inclined to say no and for me it's specifically on the additional ongoing costs so I can support the public works position. I still would have preferred to see something in writing that does show that it's cost neutral but again if you need to know right now today, I will take your word for it on that but I still remain concerned about a commitment to ongoing staff costs if you need to know today

4:00 – 4:0524 turns

ElectedPaula PerotteMayorProposed · by role4:00:00

The

UnidentifiedCity ManagerProposed · by role4:00:01

new, which I guess is the 180, is just reflecting the new position? Is that what I hear?

CommentLuc Rio CityProposedself-stated4:00:09

Two reclasses.

UnidentifiedCity ManagerProposed · by role4:00:10

And the reclass.

CommentLuc Rio CityProposedself-stated4:00:11

The bulk of it is the management analyst.

UnidentifiedCity ManagerProposed · by role4:00:14

But the 180 is the ongoing general fund cost, yeah.

ElectedPaula PerotteMayorProposed · by role4:00:19

And you were voting, you were saying you could support that?

UnidentifiedCity ManagerProposed · by role4:00:22

No, I'm saying I'm not comfortable if I need to decide today.

UnidentifiedUnidentified speaker 5Proposed4:00:27

And again, I'd certainly like to hear from Mr. Rio on that but I don't think we absolutely need to know today. As I said, I just was reminding the council that when we get to June 19th it will be decision time but I think we can live with making the decision at that time The budget gets finished after the approvals anyway. Changes are made once the council makes the approvals, the final document is done. That actually takes a little time. So the decision yes, the positions are in or no they're not, this 184,000, that's a change once we get that direction on June 19th That can be made after the fact, so I don't think we need it today.

But it was just a reminder that we'll come back and will give you everything we can but we'll be in that position. I still want a little more clarification on the vacant positions. I just wanna make sure I heard that correctly. So are we holding positions as of this moment or whatever vacant positions we have on June 19th? We will display those and the council wants to see the cost of those positions So they can see those within the context of making budget allocations.

ElectedPaula PerotteMayorProposed · by role4:01:42

For me, it's just informational. It's not holding them or doing anything different. That's

UnidentifiedUnidentified speaker 8Proposed4:01:49

not what I was hearing

UnidentifiedUnidentified speaker 5Proposed4:01:50

necessarily.

UnidentifiedUnidentified speaker 8Proposed4:01:52

As the person that brought it up, you know, I think I also said I don't want to upset the apple cart if you You are far into a recruitment process. So I think for me it's bring back the information, we'll review the information, we'll make decisions based on the information but I do think that it is a potential cost saving measure and I think within you know I'm trying to be true to the spirit of one to create capacity for new priorities or increase funding levels and current priorities are there specific operating or capital items councils willing to reduce or defer? And I'm saying yeah, vacant positions is a potential thing and it's in order to fund other current and new priorities. Current priority is pavement. Potential new priority would be these new positions that you're asking for.

ElectedPaula PerotteMayorProposed · by role4:02:47

Luke, do you understand that?

CommentLuc Rio CityProposedself-stated4:02:50

Yeah. I was going to say we generally do in the final budget a vacancy table but I think the information we have to include is the status of the recruitment

UnidentifiedUnidentified speaker 10Proposed4:03:02

I just want to make sure I'm really clear because I'm not, I'm not clear. Is staff coming back and presenting a budget with these positions or not? I guess is my question. I would say yes with the additional information requested would be my recommendation. Because I think they need that information in terms of preparing the staff report and then the

ElectedPaula PerotteMayorProposed · by role4:03:27

printed material. Could we make the decision that night and not have them included? And then add it to...

UnidentifiedUnidentified speaker 5Proposed4:03:37

Yeah, I guess I was suggesting it could go either way. Our decision here right or wrong but I'm sensing it was wrong was to not include these in the budget And we put them in this pending category because we did not want to be presumptuous. And so they're not included, but if the council gave us direction to include them we would add the money. We can do it the other way. So to Council Member Smith's suggestion when we come back we could have them in and then the council would be directing if they take them out.

Either way it would be making some adjustments after the necessary adjustments after the council approves the budget that night

UnidentifiedUnidentified speaker 14Proposed4:04:22

Could I offer an elegant solution which Luke already has, which was the two slides showing what the costs were and then if you include them. I think it was the... I think he's pulling it up right now so that it still meets with Robert's like we want to make sure we're not presuming that you're going to approve it but then you have the information knowing exactly what that margin would be of the net operating revenues?

ElectedPaula PerotteMayorProposed · by role4:04:52

I'm fine with that. Thank you. Okay, so are we moving forward with a motion to move forward with the work plan presentation? Provide direction, I think we've done that. But are we, we're not needing a motion at this point or do

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UnidentifiedUnidentified speaker 3Proposed4:05:22

we? Correct Mayor, we do not need a motion. Okay,

ElectedPaula PerotteMayorProposed · by role4:05:25

all right. I thought I had that, okay. Council Member Caston, you're live. Oh,

PresenterJaime ValdezProposed · by introduction4:05:31

no, that's okay.

ElectedPaula PerotteMayorProposed · by role4:05:32

Okay, all right. So I think we're done on this one. Thank you for the work on all of it. Okay. Moving on to council comments, standing committee reports. Are there any standing committee

4:06 – 4:1014 turns

UnidentifiedCity ManagerProposed · by role4:06:01

I just wanted to thank staff for helping organize the coffee and community event in District 1 this last weekend. It was really wonderful to get to spend time with residents, a big thank you again to Lighthouse Coffee for hosting us It was great to have the mayor there and even Supervisor Laura Capps stopped by and chatted with neighbors. So thank you to staff, I know it's a big ask to come out on a weekend morning but really it was very well appreciated and got a lot of good feedback and questions from residents so thank you for that.

ElectedPaula PerotteMayorProposed · by role4:06:37

Very nice. Mayor Pro Tem

UnidentifiedCity ManagerProposed · by role4:06:39

Smith?

UnidentifiedUnidentified speaker 10Proposed4:06:40

Yes, let's see on Saturday May 16th I attended the ribbon-cutting for the Food Bank's Comida Vida Education Center and it's beautiful so most people sort of know like the food bank right has the area you know their warehouse where they're storing food but this is a space that's going to be We have dedicated to educate parents and kids on nutrition education, and there's all sorts of interactive opportunities to play.

You know, grocery area. So it was just it was really fun to see and I know they also have some more plans in the process for that space but it's really great to see that regional resource you know a lot of people don't know Santa Barbara County when factoring in cost of living has the second highest rate of poverty in the state of California So the food bank is just a critical regional resource and we're really proud to have them here in Goleta.

And then several of us greeted some of the bike riders on Saturday who arrived at Old Town There were quite a few of them. I was there as well, and I had come just from the community coffee and ran over there.

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ElectedPaula PerotteMayorProposed · by role4:08:18

And so my question was, well how did you do in the roundabout? And someone said, well if there's like over 50 of us we did quite well. They took the lane, they took the lane. Anyway, they enjoyed coming into Goleta and enjoy everything that we're doing and really appreciate it. So it was a nice group. Council Member Kerrioca.

UnidentifiedUnidentified speaker 8Proposed4:08:40

Thank you, Madam Mayor. On May 6th I chaired the bi-monthly meeting of the Communified Board of Directors in Solvang. On the 7th I participated as a LAFCO commissioner. We discussed fun things like spheres of influence and they really are fun. You should try them sometime. And on May 16th, I had the pleasure of being the auctioneer for Standing Together to End Sexual Assault's annual fundraiser, Chocolate Define. They raised a good healthy amount of money for their intervention and prevention programming. What else?

On Thursday I attended along with Council Member Reyes-Martin the South Coast Chamber of Commerce's government affairs meeting. They talked about housing, always a popular subject.

UnidentifiedUnidentified speaker 10Proposed4:09:44

I apologize, I forgot. I also attended the ribbon cutting for the Brazilian Community Art Center in celebration of their anniversary. How

ElectedPaula PerotteMayorProposed · by role4:09:57

did that

UnidentifiedUnidentified speaker 10Proposed4:09:57

go? And so that was really fun. Oh

ElectedPaula PerotteMayorProposed · by role4:09:59

great!

UnidentifiedUnidentified speaker 10Proposed4:09:59

Yeah.

ElectedPaula PerotteMayorProposed · by role4:10:00

Because they've had to cancel it several times and this is like the third or fourth time.

UnidentifiedUnidentified speaker 10Proposed4:10:04

Yeah, it's a great space. You know they have opportunities for both kids and adults if you're interested in terms The opportunity is there so you can check out their website for more info. All

ElectedPaula PerotteMayorProposed · by role4:10:17

right, thank you for doing that. Council Member Kerrioca, did you have more? No, okay. Mr. Rosen, city attorney, nothing? Okay all right this meeting's adjourned.