[00:02:47]
IT LOOKS LIKE IT'S PAST THREE O'CLOCK, SO I THINK WE CAN GET STARTED.
UH, I'D LIKE TO CALL THE TRANSACTION AND USE TAX CITIZENS ADVISORY COMMITTEE MEETING TO ORDER FOR APRIL 2ND, 2026.
CLERK, CAN YOU PLEASE CALL THE ROLE COMMISSIONER EMMY.
[REGULAR AGENDA]
HERE.[CALL TO ORDER]
HERE.AND, UH, FOR THE RECORD, MEMBER EMMY IS EXCUSED FROM THE MEETING.
UM, SO THERE ARE NO OTHER MEMBERS.
UH, ARE THERE ANY OBJECTIONS FROM THE COMMISSION? NO, I THINK WE CAN MOVE ON.
UH, SHOULDN'T YOU HAVE TO READ THE AGENDA ITEM NUMBER ONE FIRST? YES.
[ROLL CALL]
IS A RECOMMENDATION TO APPROVE THE MINUTES OF THE TRANSACTIONS AND USE TAX CITIZENS ADVISORY COMMITTEE MEETING OF THURSDAY, FEBRUARY 5TH, 2026.OKAY, MAY I HAVE A MOTION AND SECOND FOR THIS ITEM? SO MOVED.
IT HAS BEEN MOVED AND SECONDED BY, LET'S SEE, MEMBER TOOK AND THEN SECONDED BY OCHOA.
UM, MEMBERS, ARE THERE ANY QUESTIONS OR CORRECTIONS FOR THE MINUTES BEING
[1. 26-54651 Recommendation to approve the minutes for the Transactions and Use Tax Citizens’ Advisory Committee meeting of Thursday, February 5, 2026. Suggested Action: Approve recommendation. ]
NONE? UH, WE WILL NOW TAKE PUBLIC COMMENT THERE BEING NONE.UH, CLERK, CAN YOU GO AHEAD AND PLEASE CALL FOR THE VOTE? OH, YOU CAN USE THE TABLETS IF YOU WANT.
IF WE CAN GO AHEAD AND, UH, MOVE FORWARD AND PLEASE READ THE NEXT ITEM.
ITEM TWO IS A RECOMMENDATION TO RECEIVE AND FILE AN UPDATE ON INFRASTRUCTURE AND ASSESSMENTS FROM THE PUBLIC WORKS DEPARTMENT.
ALL RIGHT, MAY I HAVE A MOTION? AND SECOND FOR THIS ITEM?
[00:05:02]
IT HAS BEEN MOVED AND SECONDED BY MEMBER INTU AND MEMBER OCHOA.UH, I'LL NOW HAND IT OVER TO STAFF FOR PRESENTATION STAFF.
ALRIGHT, GOOD AFTERNOON, CHAIR CRUZ AND COMMITTEE MEMBERS.
MY NAME IS JONATHAN BOLEN, BUSINESS OPERATIONS BUREAU MANAGER FOR THE DEPARTMENT OF PUBLIC WORKS.
TODAY WE'LL BE REVIEWING THE INVESTMENT MEASURE A HAS
[2. 26-54653 Recommendation to receive and file an update on Infrastructure and Assessments from the Public Works Department. Suggested Action: Approve recommendation. ]
MADE INTO OUR CITY'S INFRASTRUCTURE SINCE 2017.I'M ALSO JOINED BY OUR PUBLIC WORKS CAPITAL BUDGET OFFICER ANNA DENDA.
UH, AND WE ARE HERE TO ANSWER ANY QUESTIONS YOU MAY HAVE.
TO DATE, NEARLY $412 MILLION OF MEASURE A HAVE BEEN COMMITTED TOWARDS INFRASTRUCTURE INVESTMENTS BETWEEN FY 17 AND FY 20 SIX'S ADJUSTED BUDGET.
HERE ARE SOME HIGHLIGHTS OF THE SIGNIFICANT WORK THAT HAVE BEEN COMPLETED THROUGHOUT THE CITY.
WITH MEASURE A 64 PARK PLAYGROUNDS, COMMUNITY CENTERS AND PARK FACILITY PROJECTS HAVE BEEN COMPLETED.
OVER 605 LANE MILES OF STREETS HAVE BEEN REPAIRED.
APPROXIMATELY 357 LANE MILES OF STREETS HAVE BEEN SLURRY SEALED TO DATE.
UH, THE DEPARTMENT DOES PLAN TO SLURRY SEAL OVER 500 LANE MILES THROUGH FY 27 WITH MERE FUNDING.
OVER 22 LANE MILES OF ALLEYS HAVE BEEN REHABILITATED, OF WHICH 5.9 MILES WERE FORMERLY DIRT.
ALMOST 2.064 MILLION SQUARE FEET OF SIDEWALKS HAVE BEEN REPLACED.
AND 3,862 CURB RAMPS HAVE BEEN REPLACED.
41 PUBLIC FACILITY PROJECTS HAVE BEEN COMPLETED, INCLUDING 27, UH, EXCUSE ME, INCLUDING 14 PUBLIC SAFETY PROJECTS.
MANY MOBILITY PROJECTS ARE ONGOING DUE TO THE SIZE AND SCALE OF THE WORK, UH, IN THAT TABLE.
UH, BELOW IN THE SLIDE TO DATE, 99% OF THE DIRT ALLEYS IDENTIFIED IN THE ELEVATE 28 PLAN HAVE BEEN COMPLETED, ALONG WITH 26% OF ARTERIAL STREETS, 60% OF RESIDENTIAL STREETS, AND 81% OF CRACK AND SLURRY SEAL PROJECTS.
THIS MAP REPRESENTS THE ELEVATE 28 PLAN STREET IMPROVEMENTS FROM FY 23 TO FY 27 WITH STREETS COMPLETED, UH, WITH STREETS COMPLETED IN GREEN.
THIS MAP IS UPDATED EVERY QUARTER AS MORE AND MORE STREET PROJECTS ARE COMPLETED THROUGHOUT THE CITY.
I DO WANNA NOTE THAT THERE ARE SEVERAL ARTERIAL STREET PROJECTS IN ACTIVE CONSTRUCTION RIGHT NOW, SUCH AS LONG BEACH BOULEVARD, CARSON CLARK, AND STUDEBAKER, AMONG OTHERS.
WE WILL NOW REVIEW RECENTLY COMPLETED MEASURE A FUNDED MOBILITY PROJECTS SINCE OUR LAST UPDATE THIS WINTER.
HERE ARE SOME RECENTLY COMPLETED CURB RAMPS AT EL DORADO PARK LIBRARY, AS WELL AS THE, UH, THE, UH, GOOD NEIGHBOR PARK PARKING LOT AND THAT, UH, THAT PARKING LOT WAS ALSO RECENTLY, UH, REDONE.
SHOWN HERE SOME BEFORE AND AFTERS.
UH, THESE ARE SOME PHOTOS OF OUR IN-HOUSE CONCRETE CREW.
OUR IN-HOUSE CONCRETE CREW IS FUNDED THROUGH, UH, MEASURE A AS WELL AS A FEW OTHER FUNDING SOURCES.
THESE ARE ALL CITY EMPLOYEES PERFORMING, UH, SMALL CONCRETE, UH, JOB SITES, UH, WHERE A TRADITIONAL FULL CONTRACTOR, UH, WOULD NOT BE COST EFFECTIVE TO STAND UP FOR THESE LEVEL OF WORK.
AND NOW HERE ARE SOME COMPLETED, UH, COMPLETED ALLEYS.
YOU CAN SEE A BEFORE AND AFTER HERE.
AND WE DO HAVE A FEW RECENTLY COMPLETED RESIDENTIAL STREETS.
THIS ONE ON 14TH STREET, THIS ONE ON FOURTH STREET, 14TH STREET LOOKING NORTH.
THIS ONE ON 15TH STREET FROM SAN FRANCISCO TO MAGNOLIA.
AND THEN WE DID HAVE SOME ARTERIAL STREETS THAT WERE RECENTLY, UH, RE REDONE AS WELL WITH MEASURE A PALO VERDE HERE COMPLETED FROM SAN DIEGO, UH, SORRY, THE 4 0 5 FREEWAY TO WILLOW STREET, SOME BEFORE AND AFTERS.
AND AS I STATED, 64 PARK PLATE PARK PROJECTS HAVE BEEN, UH, COMPLETED WITH MEASURE A.
THIS DOES TOTAL OVER $48 MILLION OF INVESTMENT IN COMPLETED PROJECTS SINCE THE LAST TIME THE WE PRESENTED TO THE CAC, WE HAVE COMPLETED PHASE FOUR OF THE EL DORADO PARK PAVING PROJECT.
HERE ARE SOME COMPLETED PROJECTS OF THAT WORK.
PROJECT CONSTRUCTION WAS COMPLETED IN SPRING 2025 FOR THE ROADS AND LOTS IN PHASE ONE AND TWO.
UH, CONSTRUCTION WAS COMPLETED IN EARLY OCTOBER FOR PHASE THREE, WHICH WAS THE WEST BALLFIELD PARKING LOT.
AND THIS IS PHASE FOUR, WHICH IS OUR ARCHERY RANGE ROAD NORTH OF SPRING STREET 27.
NON-PUBLIC SAFETY RELATED PUBLIC FACILITY PROJECTS FUNDED WITH MEASURE A HAVE BEEN COMPLETED TO DATE.
THIS TOTALS OVER $14 MILLION OF INVESTMENT IN OUR CITY'S FACILITIES.
[00:10:01]
THE LAST TIME WE MET, WE HAVE COMPLETED THE MAIN HEALTH GENERATOR PROJECT.THIS PROJECT REMOVED THE EXISTING GENERATOR AND REPLACED IT WITH A NEW GENERATOR, UH, AUTOMATIC TRANSFER SWITCHES AND RELATED EQUIPMENT THAT WILL FULLY SERVICE THE MAIN HEALTH BUILDING DURING EMERGENCIES AND POWER OUTAGES.
CONSTRUCTION WAS COMPLETED IN FEBRUARY, 2018, AND YOU CAN SEE HERE THE SITE IMPROVEMENT AS WELL AS, UM, JUST THE REPLACEMENT OF THE GENERATOR.
14 PUBLIC SAFETY INFRASTRUCTURE PROJECTS FUNDED WITH MEASURE A HAVE BEEN COMPLETED TO DATE.
THIS TOTALS OVER $42 MILLION OF INVESTMENT RECENTLY COMPLETED.
THE POLICE DEPARTMENT ACADEMY, WHICH HAS BEEN A MEASURE, A FUNDED PROJECT FOR MANY YEARS, UM, WAS THE ORIGINAL PROJECT.
SCOPE WAS COMPLETED AND A CERTIFICATE OF OCCUPANCY WAS AWARDED IN OCTOBER, 2025.
THE ADDITIONAL SCOPE FOR THE OBSTACLE COURSE IS NOT YET COMPLETED, BUT HERE YOU CAN SEE THE, UH, BEFORE ON THE LEFT AND THE AFTER OF THE NEW CLASSROOMS AND BUILDING.
UM, THE TRAILERS WERE REPLACED BY A NEW MODULAR BUILDING, UH, WHICH HOUSES THE CLASSROOMS AND ADMIN BUILDING.
AND ON THE RIGHT, UH, THAT IS A NEW BUILDING WITH SHOWERS, LOCKER ROOMS, AND RESTROOMS. HERE IS THE CLASSROOM.
UH, THERE ARE MULTIPLE CLASSROOMS. ON THE RIGHT IS THE NEW RECRUIT CLASSROOM.
HERE YOU CAN SEE THE OUTDOOR GYM AND OUTDOOR PICNIC AREA.
AND HERE'S THE NEW SIGN, UH, FOR THE POLICE ACADEMY.
NOW I'D LIKE TO TAKE A FEW MOMENTS TO REVIEW A FEW MEASURE A PROJECTS, WHICH ARE NOT YET COMPLETE, BUT HAVE, UH, HAVE COMPLETED, UH, SOME CONSTRUCTION.
AND WE'D LIKE TO GIVE YOU A LITTLE PEEK BEHIND, UH, THE CURTAIN, SO TO SPEAK.
FIRST UP IS ADMIRAL KIDD PARK.
WE ARE PROJECTING THAT CONSTRUCTION WILL, UH, WILL, WILL BE, UH, WILL BE COMPLETED, UH, AT THE END OF APRIL OF THIS YEAR.
UM, THE FULL SCOPE WE ARE CREATING NEW BIOSWALES NEW, THE NEW NEAR THE RESTROOM BUILDING.
UM, WE ARE ALSO, UH, PERFORMING INTERIOR, UH, COMMUNITY CENTER, UH, IMPROVEMENTS THERE AT ADMIRAL KID PARK AS WELL ROLL UP STORAGE DOORS AND LIGHT FIXTURES IN THE COMMUNITY ROOMS. EL DORADO PARK SPORTS FIELDS.
UM, SO THIS IS, UH, THIS IS A PROJECT THAT, UH, CONTINUES, UH, TO GO AND, AND PROGRESS.
UM, WE DID COMPLETE PHASE ONE, AND THIS IS A, A SUBSEQUENT PHASE THAT IS UNDER CONSTRUCTION AS WELL.
FIRE STATION NINE, UH, A VERY, A SIGNIFICANT BRAND NEW FIRE STATION FUNDED WITH MEASURE A, UH, IS PROJECTED TO BE COMPLETED THIS FALL, 2026.
UM, THIS FIRE STATION NINE PROJECT INCLUDES THE DEMOLITION OF THE EXISTING BUILDING THAT WAS THERE AND A BRAND NEW CONSTRUCTION OF A NEARLY 13 SQUARE FOOT TWO STORY FIRE STATION THAT WILL HOUSE EIGHT ON ON-DUTY FIRE STATION.
THE FIRST LEVEL WILL INCLUDE THREE DRIVE-THROUGH APPARAT APPARATUS, BAYS SUPPORT SPACES, PUBLIC LOBBY, AND A MEETING ROOM AND A STATION OFFICE.
THE SECOND LEVEL WILL INCLUDE PRIVATE SLEEPING QUARTERS, A KITCHEN, DINING ROOMS, DAY ROOMS, FITNESS ROOM, MECHANICAL, ELECTRICAL, AND COMMUNICATION ROOMS. AND HERE ARE SOME PHOTOS OF THAT PROJECT IN PROGRESS.
AND MAIN HEALTH BUILDING IS ALSO UNDER CONSTRUCTION.
THIS PROJECT IS REMOVING THE EXISTING ROOF SYSTEM AND INSTALLING A NEW PVC ROOF, REMOVING THE EXISTING SKYLIGHTS, INSTALLING NEW SKYLIGHTS, AND REMOVING THE EXISTING HVAC UNIT FOR A NEW HVAC SYSTEM.
UH, CONSTRUCTION IS CONTINUING THROUGH THIS SPRING.
HERE ARE SOME PHOTOS OF THAT BEFORE AND AFTER OF THE ROOF.
SOME OTHER PHOTOS OF THE ROOF IN CONSTRUCTION.
AND JUST IN CASE YOU WERE WONDERING, ANOTHER PHOTO OF THE ROOF IN CONSTRUCTION.
HERE IS THE HVAC UNIT BEFORE AND AFTER.
ALL RIGHT, AND THE FOLLOWING MEASURE A PROJECTS ARE CURRENTLY IN THE CONSTRUCTION PHASE AND ARE ANTICIPATED TO BE COMPLETED BY THE SUMMER OF 2026.
THIS INCLUDES ADMIRAL KIDD PARK CLARK AVENUE IMPROVEMENTS, COLORADO, COLORADO LAGOON, OPEN CHANNEL RESTORATION FIRE STATION NINE MAIN HEALTH BUILDING, UH, CRITICAL FACILITY IMPROVEMENTS, AND THE MULTI-SERVICE CENTER FACILITY IMPROVEMENTS.
THIS TOTALS OVER $38 MILLION IN ADDITIONAL MEASURE A PROJECTS TO BE COMPLETED BY THIS SUMMER.
AND LASTLY, I'D LIKE TO PROVIDE A SUMMARY OF THE DEPARTMENT'S VARIOUS INFRASTRUCTURE INDICES AND ASSESSMENTS.
THE CURRENT UNFUNDED INFRASTRUCTURE NEED OF THE CITY IS ESTIMATED TO BE $3.5 BILLION.
UH, WITH OUR FACILITY CONDITION ASSESSMENT.
UM, ALL CITY FACILITIES WERE INSPECTED AND EVALUATED VIA A DETAILED FCA OR FACILITY CONDITION ASSESSMENT.
UH, THE FCA PROVIDED A 10 YEAR, UH, PROJECTION, UH, OF, OF IF NO ADDITIONAL INVESTMENT, UH, WAS PROVIDED IN THE FACILITIES.
[00:15:01]
STAFF ARE CURRENTLY UPDATING THE 2021 FCA TO BRING IT UP TO 2026 COSTS, UM, AS WELL AS, UH, INCLUDE PROJECTS THAT HAVE BEEN COMPLETED SINCE THE FCA WAS COMPLETED.CURRENTLY, THE FCA FROM 2021 IS SHOWING AN UNFUNDED FIVE YEAR NEED OF $526 MILLION WITH FOUR FACILITIES IN VERY POOR CONDITION, 91 AND POOR, 30 AND FAIR AND 31 AND GOOD.
HOWEVER, UH, STAFF ESTIMATE WITH INFLATED MATERIAL COSTS SINCE THE PANDEMIC AND INCREASED CONSTRUCTION CONTRACTOR COSTS, THE UPDATED NEED IS MOST LIKELY CLOSER TO $1 BILLION FOR THE FACILITIES.
OUR PAVEMENT MANAGEMENT PLAN IN 2025, EVERY STREET IN THE CITY WAS INSPECTED AND AN AVERAGE PCI SCORE WAS ALLOCATED TO EACH STREET SEGMENT.
THE UPDATED STREET NETWORK AVERAGE PCI IS 61, WHICH IS UP 9% FROM THE PREVIOUS SCORE OF 56 IN 2023, AND EXCEEDS THE TARGET PCI RATING OF 60 SIDEWALKS.
UH, THE CITY COMPLETED A COMPREHENSIVE REVIEW OF THE CITY'S SIDEWALK INFRASTRUCTURE IN 2019 THAT, UH, THAT REVIEW FOUND A NEED OF $631 MILLION.
UH, IN FY 17, THE CEN THE, THE CITY ENTERED INTO AN AGREEMENT, UH, TO COMPLETE, UH, MULTIPLE, UH, A DA AND CURB RAMP, UH, IMPROVEMENTS OVER 30 YEARS.
AND LASTLY, UH, WE DO HAVE A STORM WATER MASTER PLAN.
UH, I WILL SAY THE FIGURE ON THIS SLIDE IS 730 MILLION, BUT THE TRUE FIGURE, UM, IS 840 MILLION.
UH, WHEN TAKING INTO ACCOUNT BOTH THE PUMP STATION NEED AND THE STORM DRAIN NEED.
UH, I DO WANNA SAY THAT, UH, STAFF RIGHT NOW ARE UPDATING THIS STORM WATER MASTER PLAN, UH, WITH FUNDING THAT WAS ALLOCATED IN A PRIOR BUDGET, UH, TO UPDATE THIS PLAN AND IDENTIFY THE TRUE COST IN 2026, UH, DOLLARS IN NEED.
UH, ANY QUESTIONS ON THE PRESENTATION? OKAY, UH, VICE CHAIR HOWARD.
UM, UM, ON THE, UH, THE LAST SECTION AND THE, THE INDEXES AND ASSESSMENTS, YOU GAVE US AN ESCALATION ON THE CITY OWNED FACILITIES FOR THE, UM, BUT YOU DIDN'T GIVE US AN ESCALATION ON THE PUBLIC SIDEWALKS.
DO YOU HAVE A, A BALLPARK ON THAT ONE? I I'M GONNA ASK OUR CITY ENGINEER, KEITH HOWIE, TO COME UP AND RESPOND, UH, TO THAT SPECIFIC QUESTION.
BUT YEAH, THE, THE NEED AT THE TIME, UH, 2019, I BELIEVE IT WAS ESTIMATED TO BE 631 MILLION, BUT I'M NOT SURE IF THAT IS ADJUSTED FOR INFLATION.
UH, YEAH, THAT'S AT THE TIME IS 631 MILLION, BUT, UH, IT COULD BE HIGHER WITH INFLATION OVER THE YEARS, WHICH IS, YOU KNOW, SUPPOSED TO BE ADJUSTED YEARLY.
IS IT POSSIBLE TO GET MAYBE AN ESTIMATE OF WHAT THAT WOULD BE? I GUESS I CAN CALCULATE THE, THE RATE OF ESCALATION ON THE 2021 C OWNED FACILITIES AND APPLY THAT.
WELL, I DO KNOW THAT ALSO WITH THE 30 YEAR SETTLEMENT, UM, OUR OBLIGATION FOR THE 30 YEARS IS ACTUALLY AROUND $313 MILLION IS OUR TOTAL OBLIGATION UNDER THE REQUIREMENTS OF THE SETTLEMENT AGREEMENT.
THAT DID INCLUDE INFLATION, BUT AGAIN, AT, AT A TIME THAT WAS A FEW YEARS AGO.
UM, BUT STILL NEEDS TO BE ADJUSTED ON A YEARLY BASIS GOING FORWARD.
AND OF COURSE SOME PERCENTAGE OF THAT'S BEEN COMPLETED SINCE 2019.
PROBABLY SOME FAIRLY LARGE PERCENTAGE, I WOULD THINK.
UH, YEAH, A CERTAIN PERCENTAGE, UM, MAYBE 30 OVER 30 MILLION FOR SIDEWALKS.
UM, WE'VE COMPLETED, UH, A FEW THOUSAND CURB RAMPS, UM, NEW CURB RAMPS I SHOULD SAY.
AND, UH, ALSO A FEW THOUSAND, UH, RETROFITS OF NONCOMPLIANT RAMPS.
SO YEAH, QUITE A BIT OF WORK, UH, BUT STILL A LOT OF WORK REMAINS, UH, CONSIDERING THAT WE'RE ABOUT SEVEN OR EIGHT YEARS INTO THE 30 YEARS.
YEAH, IT IS A 30 YEAR, 30 YEAR SETTLEMENT.
I THINK WE HAVE ANOTHER QUESTION FROM MEMBER NUK.
HEY, UH, GREAT PRESENTATION, JONATHAN.
IT'S GREAT TO SEE ANOTHER, UH, LONG BEACH STATE ALUM IN A LEADERSHIP ROLE IN THE CITY.
WHAT, UH, YOU KNOW, I GUESS MAKING THE DECISION OF
[00:20:01]
THE DIFFERENT LOCATIONS THROUGHOUT THE CITY, IS IT PURELY BASED ON THE PAVEMENT SCORE OR THE CONCRETE SCORE, OR HOW DO YOU CONSIDER EQUITY AND DISTRIBUTION OF THE PROJECTS? GREAT QUESTION.SPECIFICALLY FOR STREETS OR PARKS OR JUST FOR, WELL, I'LL SAY, I'LL, I'LL LEAVE IT JUST TO PAVEMENT AND ROADS.
'CAUSE I KNOW A LOT OF PEOPLE LOVE TO TALK ABOUT PAVEMENT AND ROADS.
KEITH, CAN YOU, UH, GONNA DEFER IT OVER TO KEITH AS WELL? UH, SO SELECTION OF STREETS ON PAVEMENT IS, UH, BASED ON AN ALLOCATION BASED ON PERCENT NEED.
SO IT'S THE, SO THE SIZE OF A COUNCIL DISTRICT WEIGHS IN AS WELL AS THE CONDITION OF THE STREETS.
SO THE NUMBER OF ROAD MILES WITHIN A DISTRICT AND THE CONDITION OF THOSE STREETS, UH, DETERMINES THE PERCENT NEED.
UM, AND THEN THAT IS HOW THE BUDGET IS DETERMINED.
UH, AND THEN FROM THERE, WE, WE SELECT STREETS BASED ON THE, THE PMP DATA.
SO, TO, TO, TO KIND OF, TO, TO ADD ON TO WHAT, WHAT KEITH, UH, WHAT KEITH SAID THERE.
EVERY TWO YEARS WE STUDY THE PAVEMENT CONDITION, AND THEN THAT DATA IS AGGREGATED INTO, UH, BASICALLY A PLAN OF WHERE, WHERE, WHAT STREETS ARE WE GONNA DO, UM, BASED ON THE HIGHEST NUMBER OF NEED, UM, I BELIEVE IT WAS 2016 THAT CITY COUNCIL THROUGH THE BUDGET OVERSIGHT COMMITTEE MADE A RECOMMENDATION THAT STREET ALLOCATIONS ARE BASED A HUNDRED PERCENT NEED BASED.
UM, I THINK BEFORE THAT IT WAS 50% DIVIDED BY NINE COUNCIL DISTRICTS, AND THEN 50% BASED ON NEED.
BUT THERE WAS A DECISION IN 2016 TO MOVE THAT TO A HUNDRED PERCENT BASED ON NEED.
INTERESTING THAT THERE'S NOT A SOCIO-ECONOMIC, UH, CONSIDERATION AS FAR AS MAYBE THERE'S, YOU KNOW, ONE SIDE OF TOWN IS OLDER OR HAS DIFFERENT NEEDS VERSUS THE OTHER SIDE.
BUT, UH, IT'S GOOD, GOOD TO HEAR THAT, THAT THAT'S HOW IT'S, UH, DECIDED.
I KNOW THERE WAS A ASPHALT PILOT WHERE YOU, YOU GUYS ARE DOING YOUR OWN SMALL SCALE GENERATION.
HOW'S THAT GOING? AND AND IS THAT CONTRIBUTING TO THE, TO THE DEVELOPMENT? I, UH, YES.
I THINK YOU ARE REFERRING TO THE SLURRY SEAL PROGRAM, UH, IN-HOUSE.
SO THAT IS, THAT'S, UH, THAT IS FUNDED NOT PRI NOT SOLELY THROUGH MEASURE A, BUT MEASURE A IS A, IS A BIG CONTRIBUTOR OF THAT.
UH, THAT PROGRAM HAS BEEN EXTREMELY SUCCESSFUL.
UH, WE DID A PRETTY IN-DEPTH, UH, STUDY WITH, WITH, WITH THIS, UM, WITH THIS COMMITTEE A FEW MEETINGS AGO, UH, LOOKING AT THE PAVEMENT CONDITION INDEX, BUT OUR SCORE RISING, UH, BY THE LEVEL WE SAW IT, WE, WE ATTRIBUTE THAT NOT SOLELY TO THE SLURRY SEAL PROGRAM, BUT, UM, DEFINITELY A MAIN CONTRIBUTOR TO THAT SUCCESS OF RAISING THE PCI ESPECIALLY RESIDENTIALS.
UH, BUT WE HAVE, WE DID AT THE TOP, I KNOW THERE'S, I SAID A LOT OF WORDS.
UM, WE HAVE SLURRY SEALED, SORRY, IT WAS IN, IT'S IN HERE SOMEWHERE.
UH, 357 LANE MILES OF STREETS HAVE BEEN SLURRY SEALED, WHEREAS 605 LANE MILES HAVE BEEN REPAIRED OR REHABILITATED.
UM, I KNOW, UH, THE ELEVATE 28 IS GONNA RUN OUT HERE AND THERE'LL BE A NEW PLAN.
UH, IS THE UPDATED FCA GONNA INFORM THAT OR IS OR ARE ALL OF THEM GONNA BE UPDATED AND GO INTO THE NEW FIVE YEAR INCREMENT? SO, THAT'S A GREAT QUESTION.
UM, WE ARE INTERNALLY UPDATING OUR FCA DATA, UM, MANUALLY.
UH, THERE'S CURRENTLY NO FUNDED FUND OR AVAILABLE FUND THAT WE HAVE IDENTIFIED WHERE WE CAN PERFORM ANOTHER FCA.
UM, SO WE'RE, WE'RE, WE'RE WORKING ON THAT INTERNALLY, UM, TO BRING EVERYTHING UP TO INFLATION AND THEN ALSO TO REMOVE THE PROJECTS MANUALLY THAT HAVE BEEN COMPLETED.
UH, FOR INSTANCE, IF YOU LOOK AT THE FCA NOW, OLD FIRE STATION NINE IS GONNA HAVE A REALLY BAD SCORE.
WE'RE GONNA OBVIOUSLY TAKE THAT FACILITY OUT.
UM, IN, IN REGARDS TO YOUR QUESTION FOR THE NEXT FIVE YEAR PLAN, WE ARE INTERNALLY IN THE CITY BEGINNING THE PLANNING PROCESS.
WE ARE ABOUT TO, YOU KNOW, FY 27 IS THE, IS THE BUDGET WE ARE, UH, PROPOSING NOW.
AND ELEVATE 28 STILL HAS A FULL YEAR OF FY 27 FUNDING IN THE LAST, UH, THIRD OF THE, UH, THE PLANNED BOND, UH, ALLOCATION.
UM, BUT YES, YES, THERE IS, THERE ARE PLANS IN THE WORKS.
REMEMBER OCHOA, THANK YOU SO MUCH, AND THANK YOU TO PUBLIC WORKS FOR ALL THE GREAT STUFF YOU'RE DOING.
I REMEMBER WHEN THAT MAP USED TO HAVE A LOT MORE RED ON IT, AND SO IT'S CLEAR TO SEE HOW MUCH WORK'S GETTING DONE.
UM, I HAD A QUESTION REGARDING THE ALI SCORE, THAT IT WAS 18% DOWN.
IS THAT JUST BECAUSE OF A SHIFT
[00:25:01]
IN PRIORITIZATION TOWARDS, UM, YOU KNOW, THE CITY OWNED FACILITIES OR THE STORM WATER, JUST FOCUS ON, UH, MAIN ROADS AND ARTERIAL STREETS AS OPPOSED TO FOCUS ON ALLEYS AND PA I KNOW THERE WAS A LOT OF DIRT ROADS AND PAVING THOSE WAS A BIG PRIORITY.UH, SO JUST IS THERE A REASON FOR THAT SCORE DROPPING SO MUCH? WONDERFUL QUESTION.
I AM GONNA DEFER TO KEITH ONE LAST TIME, BUT I'LL TRY TO TAKE THE, THE OPENING STATEMENT HERE.
UH, YOU KNOW, WHEN WE RECEIVED THE PCI, THE PAYMENT CONDITION INDEX DATA, WE WERE ALSO SURPRISED TO SEE THE ALI SCORE DIP THAT LOW.
UM, WE HAVE BEEN INVESTING IN OUR ALLEY PROGRAM, UM, AND WE HAVE BEEN COMPLETING A SIGNIFICANT ALLEY PROJECTS INCLUDING CONVERTING ALL DIRT ALLEYS INTO PAVEMENT.
UM, NOW WHY DID THE PCI GO DOWN SO GREATLY WHILE THE OTHER SCORES WENT UP? WE HAVE BEEN FOCUSING MORE OBVIOUSLY, DOLLAR FOR DOLLAR IN OUR RESIDENTIAL STREETS AND ARTERIAL STREETS.
UM, BUT WE'RE ALSO COMPARING DATA FROM 2021 OR 2023.
AND SO IT'S POSSIBLE THAT THE PREVIOUS CAPTURE WAS NOT AS ACCURATE AND THIS CAPTURE WAS MORE ACCURATE.
UM, BUT THERE'S ALSO THE INFLUX OF STORMS THAT HAVE HAPPENED SINCE THAT TIME.
UH, WE, WE DID HAVE SOME PRETTY BAD STORM SEASONS.
THAT BEING SAID, WE, YOU KNOW, WE ARE MOVING AHEAD WITH OUR ALLEY REHABILITATION PROGRAM AS SCHEDULED.
SO WE, WE CONTINUE TO FUND, UH, THE ALLEY PROGRAM AND WE ALSO, UH, HAVE STARTED TO LOOK INTO ALTERNATIVE METHODS OF DELIVERING ALLEY PROJECTS SUCH AS OUR GREEN ALLEY PROGRAM, WHICH IS A BIT DIFFERENT.
IT DOESN'T PAVE IT WITH, UM, TRADITIONAL ASPHALT, BUT INSTEAD IT'S PERMEABLE CONCRETE.
AND SO THE WATER ACTUALLY GOES INTO THE, INTO THE GROUNDWATER AND INTO THE SOIL.
UM, AND THAT WE'RE, WE ARE EXPLORING THOSE OPTIONS AS WELL.
YEAH, I'LL ALSO ADD, I MEAN, UH, JONATHAN TOUCHED ON A LOT OF GOOD POINTS THERE.
UM, YOU KNOW, A LOT OF, YOU KNOW, THE PCI AND PAYMENT CONDITION IS, IS TIED TO HOW MUCH INVESTMENT GOES IN, AND THAT'S WHY YOU'RE SEEING PCI GROW A LOT, ESPECIALLY BECAUSE OF LIKE THE SLURRY SEAL, UM, AND A LOT OF THE REHABS.
UH, BUT ALSO, YOU KNOW, ONE OTHER POINT TO NOTE ABOUT ALLEYS IS THAT ALLEYS THE STANDARD IS, IS CONCRETE, UH, AND CONCRETE IS MUCH MORE EXPENSIVE THAN ASPHALT.
FIRST OF ALL, LET ME SAY I APPRECIATE YOUR BREVITY IN THE FIRST PART OF THE PRESENTATION BECAUSE, YOU KNOW, IT IS REALLY NICE TO SEE WHAT MEASURE A HAS PROVIDED.
I DO LIKE TO SEE THE PICTURES, AND I THINK ANYBODY, YOU KNOW, THAT'S ALWAYS THE GOOD, GOOD PART.
I THINK THE MOST IMPORTANT PIECE TO ME EVERY TIME THAT SPEAKS TO ME IS THE LAST COUPLE OF SLIDES WHERE YOU'RE TALKING ABOUT WHERE WE'RE AT.
UM, AND I'LL JUST GO ON RECORD AGAIN, THAT FROM WHAT I'M HEARING, OVER THE LAST TWO AND A HALF YEARS, I KEEP ON FEELING THAT, UM, THINGS ARE NOT IMPROVING AS MUCH AS WE WOULD LIKE OR THINK THAT THEY WOULD LIKE.
AND THEN BASED ON THE PROJECTIONS OF THE CASH FLOW, AND HOPEFULLY THE BONDS ARE GONNA PROVIDE US MORE INSIGHT, BUT BASED ON THE PROJECTIONS OF THE CASH FLOW OF MEASURE A FUNDS, LESS AND LESS IS GOING TOWARDS OUR PUBLIC WORKS PROJECTS TOWARDS THE ACTUAL INFRASTRUCTURE.
UM, SO I GOT A COUPLE QUESTIONS.
THE FIRST ONE IS, AND YOU MENTIONED THAT THE LAST FCA WAS DONE IN 2021, AND I APPRECIATE THAT STAFF'S GONNA GO TRY TO UPDATE IT, KNOCK OFF THE BAD LIST, BUT OFF THE TOP OF YOUR HEAD, THE FOUR FACILITIES THAT WERE IN VERY POOR CONDITION, WERE THEY ADDRESSED IN FROM 2021 TO NOW, HAVE THEY BEEN ADDRESSED AND ARE THEY OFF THE VERY POOR? I CAN DEFINITELY RETURN WITH A REPORT, UH, FOR THAT.
I, I DON'T HAVE THAT INFORMATION OFF THE TOP OF MY HEAD.
'CAUSE I THINK, YOU KNOW, IF, IF YOU'RE TALKING, IF YOU SEE, OKAY, THERE'S THESE FOUR AREAS THAT ARE REALLY VERY POOR, THEY'RE JUST NOT GOOD, AND IT'S NOT GONNA GET ANY BETTER MM-HMM
SO EA DECISION HAS TO BE MADE TO EITHER DO SOMETHING ABOUT IT OR GET RID OF THEM.
AND I WILL ADD WHEN WE, UM, I THINK IT WAS TWO PRESENTATIONS OR THREE PRESENTATIONS AGO, WE DID DO A IN DEPTH ON THE FCAI THINK WITH 15 SLIDES.
THERE WAS A SLIDE THAT SHOWED IF, IF WE DON'T INVEST 500 AND WHATEVER THAT NUMBER WAS, 533 MILLION, IT WILL BE THIS IN BY 2031.
SO I THINK TO ANSWER YOUR QUESTION ON, YOU KNOW, ARE THINGS IN THE AGGREGATE GETTING BETTER, I THINK WE CAN SAY WE'RE NOT INVESTING $533 MILLION.
SO WE, WE KNOW THINGS ARE, ARE NOT GETTING BETTER.
HOWEVER, THINGS ARE ARE DEFINITELY GETTING BETTER ON, YOU KNOW, FACILITY BY FACILITY SCOPE.
UM, BUT YEAH, IN AN AGGREGATE SENSE, IF WE'RE NOT INVESTING THE LEVELS THAT THAT CHART SHOWS, THEN WE KNOW THAT THINGS ARE NOT IMPROVING.
SO THE SECOND QUESTION THAT I HAVE FOR YOU, AND, AND YOU KIND OF MENTIONED IT, YOU, YOU HAVE NO FUNDING TO DO ANOTHER FCA AND AT THIS STAGE IN THE GAME, YOU'RE GONNA TRY TO DO THE BEST YOU CAN TO KIND OF PROJECT WHAT CAN WE DO THAT CAN HELP THAT NEXT YEAR'S BUDGET HAS A VERY SPECIFIC LINE ITEM?
[00:30:01]
BECAUSE WE KNOW THAT ONCE IT GETS AUTHORIZED, IT STILL TAKES ANOTHER YEAR TO DO THE DANG THING.SO EVEN IF YOU GOT IT FUNDED NEXT YEAR, YOU'RE NOT GONNA HAVE REPORTS UNTIL 2028.
AND I THINK SEVEN YEAR GAP IS PROBABLY, I MEAN, IT'S APPROPRIATE FOR FACILITIES TO HAVE AN EXTERNAL VIEW OF YOUR FF UH, FACILITY CONDITION.
UH, SO WHAT CAN WE DO TO HELP GET A LINE ITEM IN THE BUDGET THAT SAYS DO A FCA? I WILL DEFER THAT QUESTION TO OUR FINANCIAL MANAGEMENT BUDGET FOLKS.
SO FOR AS FAR AS THE FY 27 BUDGET, THAT IS SOMETHING YOU'LL SEE LATER ON TODAY.
AS FAR AS THE UPCOMING CALENDAR OF THE DEVELOPMENT PLAN, I THINK IT'S NUMBER FIVE TODAY.
BUT REALLY THAT'S WHAT THIS PROCESS IS TO VOICE THE, UM, THE NEEDS THAT WE ARE HEARING.
AND THEN THE CITY MANAGER DOES DEVELOP HIS, UH, PROPOSED BUDGET AND BRINGS IT TO THE MAYOR, AND THEN IT DOES COME OUT TO COUNCIL IN AUGUST PUBLICLY.
SO THAT'S WHERE THE BOC REVIEWS ITEMS ALONG WITH THE COUNCIL, AND WE HEAR FROM THE COMMUNITY.
SO THERE'S GOING TO BE OPPORTUNITIES FOR INPUT ON THE BUDGET PROCESS, BUT AGAIN, WE'LL HAVE A FULL OUT OVERVIEW OF THAT PROCESS LATER TODAY.
SO THEN, THEN BOTTOM LINE IS WE'LL COME BACK TO IT TO FIGURE OUT WHAT CAN BE DONE AND THEN THE PROCESSES OF AT LEAST TRYING TO OFFER SOME SUPPORT OR THOUGHTS, BECAUSE I THINK IT'S IMPORTANT.
AND WHAT I BELIEVE THIS COMMISSION OR COMMITTEE WAS SET UP FOR WAS TO HAVE BIG PICTURE OVERVIEW OF WHAT'S GOING ON AND IS IT HELPING BECAUSE WE ALL KNOW THAT SOMEBODY'S GONNA BE PROPOSING A, A NEW PROPERTY TAX TO TRY TO TAX US ALL SO THAT WE COULD PAY FOR THE BIG, UH, PROBLEMS WITH OUR BUDGET.
AND IF ANYTHING, WE'RE HOPING SOME OF THAT IS GONNA GO TO INFRASTRUCTURE IF IT GOES THROUGH.
AND, AND, AND I WANNA MAKE SURE THAT IF THIS COMMITTEE CAN DO SOMETHING TO, TO AT LEAST PUT DEDICATED RESOURCES AND FUNDS TO MAKE THE GAP SMALLER, SMALLER, SMALLER FOR, FOR OUR NEEDS.
LAST THING, SO WE ALL KNOW THE OLYMPICS ARE COMING.
I SPENT TODAY TRYING TO BUY TICKETS AND BOY, THEY'RE SO EXPENSIVE FOR OPENING CEREMONY
SO IS THERE SOME SPECIAL CALL OUTS AND THINGS ALREADY HIGHLIGHTED IN, IN THESE AREAS TO HELP WITH THE OLYMPICS? AND ARE WE GETTING ANY OUTSIDE FUNDS TO HELP WITH EITHER THE CITY FACILITIES OR THE PAVEMENTS? BECAUSE, YOU KNOW, I KNOW PEOPLE ARE GONNA BE GOING UP AND DOWN OCEAN, AND I LIVE HALF A BLOCK FROM OCEAN, AND I KNOW THE CONDITION OF THAT ONE WAY OF THAT ROAD.
BUT, UH, ARE THERE SPECIAL FUNDS COMING THROUGH THAT ARE GONNA HIGHLIGHT AND, AND, AND HOPEFULLY ALLEVIATE SOME OF THESE ISSUES THAT WE SEE? LET ME TAKE A FIRST, FIRST STAB AT THIS AND THEN I'LL, I'LL DEFER OVER TO FINANCIAL MANAGEMENT.
BUT FIRST, FIRST I JUST WANNA SAY I WAS ABLE TO GET HANDBALL QUALIFIER AROUND, UH, TICKETS AT LONG BEACH ARENA.
SO I FEEL PRETTY, I'M GONNA QUALIFIER, I CAN'T WAIT.
UM, I DO WANNA SAY, UH, WE INTERNALLY IN PUBLIC WORKS ARE WORKING WITH A CITYWIDE TASK FORCE TO REALLY IDENTIFY ANY AND ALL THINGS THAT WE ARE GONNA BE CALLED TO DO, UH, IN PREPARATION OF LA 28, ELEVATE 28, AND I KNOW IT'S TITLED ELEVATE 28 LA 28, ELEVATE 28 DOES NOT HAVE ANY SPECIFIC PROJECTS OUTSIDE OF THE CONVENTION CENTER, WHICH THAT THAT PROJECT IS BOND FUNDED AND, AND MOVING FORWARD WITH, UM, WITH SOME, SOME OTHER FUNDING SOURCES.
UH, BUT THE VAST MAJORITY OF OUR ELEVATE 28 PROJECTS ARE REALLY TO BRING THE CITY, UM, YOU KNOW, UH, TO INVEST IN THE CITY AND, AND THE FACILITIES AND THE PARKS WITHIN THE CITY, BUT NOT NECESSARILY THE GAME SITES.
AND SO THERE, THERE IS NO SPECIFIC FUNDING IN ELEVATE OR 28 OR MEASURE A, UM, THAT IS DIRECTLY BUILDING, UH, SOMETHING TO HOST THE GAMES.
UH, THAT BEING SAID, THERE ARE CALLOUTS LIKE MARINE STADIUM, UH, YOU KNOW, MAINTENANCE AND IMPROVEMENTS.
AND SO, YOU KNOW, WE KNOW THE GAMES ARE GONNA BE THERE THAT WILL PROVIDE, YOU KNOW, POSSIBLY TO GO IN AND SLURRY SEAL THE LOT SO IT, YOU KNOW, IT LOOKS PRESENTABLE OR DO SOME A DA CURB RAMP WORK.
UM, BUT THERE IS NOT IN OUR PLAN, YOU KNOW, SIGNIFICANT RESOURCES, UH, TO BUILD OUT THE GAMES.
AND THAT, THAT, I JUST WANT TO SAY THAT THAT WAS NOT THE INTENT OF, OF ELEVATE 28.
UH, THAT BEING SAID, WE ARE AS A, AS A CITY, AND THIS IS WHERE I WILL NEED TO LEAN ON, UM, SOME PARTNERS, UH, WORKING ON VARIOUS METHODS OF, OF HOW TO PREPARE THE CITY FOR THE GAMES, UM, BOTH FUNDED BY CITY RESOURCES AS WELL AS, YOU KNOW, LOOKING AT GETTING REIMBURSEMENT FROM PARTNERS.
BUT I, I CAN'T SPEAK MUCH MORE TO THAT WITHOUT BEING OUTSIDE OF MY ELEMENT.
[00:35:01]
UH, FINANCE HAVE ANY OTHER COMMENTS? UM, STRANGELY ENOUGH, IT IS ALSO OUTSIDE OF OUR ELEMENT AS WELL.UH, THERE IS A OLYMPIC PLANNING, UH, COMMITTEE WITHIN OUR CITY, AND, UH, THEY'RE HANDLING ALL THE LOGISTICS BETWEEN THE CITY AND LA 28.
SO WE CAN, UM, PROBABLY FIND SOME OF THAT INFORMATION FOR YOU AND GET BACK TO YOU ON THAT.
I, I THINK THAT'S ALL THE COMMENTS FROM HERE.
SO I NEED TO GO THROUGH THE PROCESS OF, UH, TAKING ANY PUBLIC COMMENTS.
ANYONE WHO WOULD LIKE TO SPEAK TO THIS ITEM, PLEASE LINE UP AT THE PODIUM.
SEEING NONE, SEEING NONE, LET'S MOVE FORWARD.
UM, MEMBERS, ARE THERE ANY OTHER FURTHER DISCUSSIONS? OKAY, CLERK, PLEASE CALL FOR VOTE.
OKAY, SO LET'S GO AHEAD AND, UH, PLEASE READ THE NEXT ITEM, PLEASE.
ITEM THREE IS THE RECOMMENDATION
[3. 26-54654 Recommendation to receive and file a presentation from the Financial Management Department regarding Measure A Bonds. Suggested Action: Approve recommendation. ]
TO RECEIVE AND FILE PRESENTATION FROM THE FINANCIAL MANAGEMENT DEPARTMENT REGARDING MEASURE A BONDS.UH, MAY I HAVE A MOTION AND SECOND FOR THIS ITEM? ALL RIGHT, IT HAS BEEN MOVED AND SECONDED, UH, BY, UH, MEMBER OCHOA AND VICE CHAIR HOWARD.
I'LL NOW HAND IT OVER TO STAFF FOR PRESENTATION.
THANK YOU CHAIR CRUZ, MEMBERS OF THE COMMITTEE.
KEVIN RIPER, FINANCE DIRECTOR.
UM, I HAVE AN 11 SLIDE PRESENTATION ON FINANCING PUBLIC INFRASTRUCTURE.
UM, I'M GONNA GO THROUGH FOUR DIFFERENT TOPICS IN THOSE 11 SLIDES.
I'M GONNA TALK ABOUT THE IMPORTANCE OF THE INITIAL POLICY DIRECTIVE, UM, WHICH INVOLVES OBVIOUSLY THE MAYOR AND THE CITY COUNCIL AND THIS COMMITTEE IN AN ADVISORY CAPACITY.
I'M GONNA DESCRIBE TWO POSSIBLE POLICY OPTIONS WITH RESPECT TO FINANCING PUBLIC INFRASTRUCTURE, AND THEN WHAT THE IMPLICATIONS ARE FOR EACH OF THOSE OPTIONS.
AND THEN I'LL, I'LL WRAP UP WITH A, UH, RESULTING RECOMMENDATION, UM, THE IMPLICATIONS OF THE, UH, EACH OPTION DRIVE, UM, WHAT RECOMMENDATIONS COULD BE EITHER FROM STAFF OR FROM THE CAC.
UM, AND I, I DIDN'T PUT IT ON THE, UM, AGENDA HERE, BUT I ALSO HAVE A SINGLE SLIDE ON WHAT HAPPENED WITH THE INITIAL TRANCHE OF 60 AND A QUARTER MILLION DOLLARS OF INFRASTRUCTURE BONDS BACKED BY MEASURE A, JUST AN UPDATE ON THAT, ON HOW THOSE WERE SPENT AND WHAT HAPPENED WITH THEM.
THE POLICY DIRECTIVE SLIDE, A GENERAL RULE IN PUBLIC FINANCE IS THE POLICY GOAL SHOULD DRIVE THE FINANCING DECISION AND NOT THE OTHER WAY AROUND.
IN OUR WORLD OF GOVERNMENT FINANCE, WE OFTEN GET PEOPLE LEAPING RIGHT TO THE, OH, WE NEED THIS, SO LET'S GO FINANCE IT THIS WAY.
AND INSTEAD, YOU SHOULD START WITH WHAT YOUR POLICY GOAL IS, AND THEN EXPLORE FINANCING ALTERNATIVES SOUNDS REALLY OBVIOUS, BUT NOT EVERYBODY REACHES THAT CONCLUSION.
SO I'M GOING TO TALK ABOUT TWO POTENTIAL POLICY DIRECTIVES WITH RESPECT TO MEASURE A AND PUBLIC INFRASTRUCTURE.
AND THE FIRST ONE IS WHAT I WILL CALL MAXIMUM FINANCIAL FLEXIBILITY POLICY DIRECTIVE OPTION ONE, MAXIMUM FINANCIAL FLEXIBILITY.
AND, UH, THE DEFINITION OF THAT WOULD BE IN THE CASE OF MEASURE A, HEY, LET'S MAXIMIZE THE PERCENTAGE OF MEASURE A REVENUE THAT'S ALLOCATED TO INFRASTRUCTURE ON A PAY AS YOU GO BASIS.
THAT KIND OF, UH, THAT KIND OF APPROACH.
EVERYTHING PAY AS YOU GO, NO DEBT GIVES THE CITY COUNCIL MAXIMUM FLEXIBILITY TO MOVE MONEY FREELY BETWEEN INFRASTRUCTURE AND RESTORING AND ENHANCING PUBLIC SAFETY.
THE TWO AUTHORIZED USES OF MEASURE A, UM, AND THE, THE CASE FOR MAXIMIZING THE PERCENTAGE OF MEASURE A REVENUE ALLOCATED INFRASTRUCTURE WAS PASSIONATELY AND ELOQUENTLY STATED BY THIS COMMITTEE IN ITS MEMO TO THE CITY MANAGER ON AUGUST 25TH OF LAST YEAR.
SO WE HAD THIS, WE HAD THIS DISCUSSION, UH, SEVERAL DURING SEVERAL MEETINGS LAST YEAR, BUT THERE'S A SECOND POLICY DIRECTIVE OPTION THAT COULD ALSO BE CONSIDERED, AND THAT'S POLICY DIRECTIVE OPTION TWO, WHICH I, I'M GONNA CALL MAXIMUM INFRASTRUCTURE.
AND THE DEFINITION OF THAT IS SOMEWHAT IS DIFFERENT FROM THE FIRST POLICY, POTENTIAL POLICY DIRECTIVE, STILL MAXIMIZE THE PERCENTAGE OF MEASURE A REVENUE ALLOCATED INFRASTRUCTURE, BUT FOR DEBT SERVICE ON LONG-TERM BONDS, AS OPPOSED TO THE FIRST POLICY OPTION, WHICH WOULD BE FOR PAY AS YOU GO CAPITAL EXPENDITURES.
AND THE, THE ARITHMETIC FACT ABOUT USING DEBT FINANCING FOR
[00:40:01]
PUBLIC INFRASTRUCTURE IS THAT YOU, REGARDLESS OF WHAT THE PERCENTAGE IS, 5% IS ALLOCATED INFRASTRUCTURE, OR 95% IS ALLOCATED INFRASTRUCTURE AT ANY LEVEL OF PERCENTAGE ALLOCATION OF MEASURE A REVENUE TO INFRASTRUCTURE.YOU ALWAYS GET MORE INFRASTRUCTURE SOONER IF YOU FINANCE IT WITH BONDS AS OPPOSED TO PAY AS YOU GO, AS OPPOSED TO BUILDING UP CASH UNTIL YOU HAVE ENOUGH CASH TO EXECUTE THE CAPITAL PROJECT.
AND I WANT TO TALK ABOUT WHY THAT IS.
UM, THERE ARE, THERE ARE FOUR ASPECTS WHICH ARE LISTED HERE, WHICH I'LL GO THROUGH ONE BY ONE.
UM, WITH BONDS, YOU LEVERAGE THE MEASURE A REVENUE STREAM, UM, YOU ENHANCE AND PROMOTE INTERGENERATIONAL EQUITY AND ALSO SOCIOECONOMIC EQUITY.
AND YOU WITH BONDS, YOU BEAT THE RISING COST OF CONSTRUCTION, UM, AND THE DETERIORATING EXISTING INFRASTRUCTURE BECAUSE YOU PUT THE INFRASTRUCTURE IN THE GROUND QUICKER.
SO LET'S GO THROUGH EACH OF THOSE FOUR REASONS FOR CONSIDERING ALLOCATING.
MEASURE A REVENUE TO INFRASTRUCTURE VIA DEBT SERVICE ON BONDS INSTEAD OF PAY AS YOU GO.
FIRST ONE, LEVERAGE THE MEASURE A REVENUE STREAM.
IMAGINE FOR A MOMENT THAT WE ALLOCATED ALL OF MEASURE A ALL MEASURE A REVENUE TO INFRASTRUCTURE.
AND WE USED IT TO PAY DEBT SERVICE ON BONDS FOR THE NEXT 30 YEARS.
MINIMUM FLEXIBILITY BECAUSE IT WOULD'VE ALL BE ALLOCATED TO DEBT SERVICE.
AND YOU GOTTA PAY DEBT SERVICE EVERY YEAR ONCE YOU SELL BONDS.
BUT YOU COULD, AS THE FIRST ARROW SHOW AT AT FEBRUARY INTEREST RATES, YOU COULD GET BOND PROCEEDS OF 1,000,000,001.
THAT'S A THIRD OF WHAT JONATHAN SAID IS THE CURRENTLY OUTSTANDING UNMET UNFUNDED NEED AT 10% SECOND ROW.
SECOND HERE, EVEN IF ONLY IF THE MAYOR AND THE COUNCIL CHOOSE TO ALLOCATE ONLY 10% OF MEASURE A REVENUE TO INFRASTRUCTURE USING IT FOR DEBT SERVICE ON BONDS, YOU STILL HAVE ONE 10TH OF 1,000,000,001, YOU HAVE $111 MILLION OF BOND PROCEEDS THAT COULD BE SPENT ON INFRASTRUCTURE RIGHT UP FRONT IMMEDIATELY, I MEAN, AS FAST AS PUBLIC WORKS COULD SPEND IT.
AND EVEN PUBLIC WORKS COULDN'T SPEND A BILLION DOLLARS IN A COUPLE YEARS.
BUT THIS IS FOR ILLUSTRATIVE PURPOSES.
SO THAT'S THE FIRST REASON FOR CONSIDERING LONG-TERM DEBT FINANCING FOR INFRASTRUCTURE.
SECOND REASON IS PROMOTING INTERGENERATIONAL EQUITY.
UM, WHEN WE TALKED ABOUT THIS A LITTLE BIT AT OUR, UM, MARCH, 2025 RETREAT, WHEN WE FIRST DISCUSSED THE NOTION OF BONDS, INTERGENERATIONAL EQUITY REFERS TO THE FAIRNESS BETWEEN DIFFERENT GENERATIONS OF TAXPAYERS.
AND I'LL ILLUSTRATE IT THIS WAY, IF A CITY WITH ANY GOVERNMENT ENTITY PAYS CASH FOR CAPITAL INFRASTRUCTURE WITH A 30, 40, 50 YEAR LIFE, THEN CURRENT RESIDENTS HAVE BORNE THAT ENTIRE FINANCIAL BURDEN.
AND FUTURE RESIDENTS, MANY OF WHOM AREN'T YET BORN, A LOT OF WHOM HAVEN'T EVEN YET MOVED INTO LONG BEACH, LITERALLY IF IT'S STREETS AND ROADS, FUTURE RESIDENTS LITERALLY GET A FREE RIDE ON THE BACKS OF THE CURRENT GENERATION WHO PAID CASH FOR INFRASTRUCTURE.
AND IT, AS I SAID A YEAR AGO, THERE'S 125 YEAR HISTORY IN, IN THE US OF PROMOTING INTER INTERGENERATIONAL EQUITY BY SELLING DEBT TO PAY FOR LONG LIVE ASSETS.
AND IN LONG BEACH, WE SELL 30 YEAR DEBT SO THAT THE INFRASTRUCTURE IS LITERALLY PAID FOR EVERY YEAR FOR 30 YEARS BY TODAY'S TAXPAYERS AND TAXPAYERS.
FIVE YEARS FROM NOW AND 10 YEARS FROM NOW, AND 30 YEARS FROM NOW, ALL OF WHOM IN FUTURE WILL BENEFIT FROM THE INFRASTRUCTURE THAT'S BUILT.
AND ROADS AND, UH, UH, STREETS, ROADS AND BRIDGES ARE THE CLASSIC EXAMPLE.
BUT THE SAME IS TRUE FOR PUBLIC BUILDINGS THAT ARE EXPECTED TO LAST FOR 30 OR 40 OR 50 YEARS.
SO IN THAT WAY, YOU MATCH THE USERS OF THE INFRASTRUCTURE WITH THE PAYERS OF THE INFRASTRUCTURE.
AND THAT'S NOT THE CASE IF YOU USE PAY AS YOU GO.
'CAUSE PAY AS YOU GO, AS I SAID, IS CURRENT TAXPAYERS AND FUTURE TAXPAYERS GET A FREE RIDE.
SO IN THE, IN, IN THE NOTION OF FAIRNESS BETWEEN GENERATIONS OF TAXPAYERS, PAY AS YOU GO IS INEQUITABLE BECAUSE IT BURDENS THE CURRENT GENERATION FOR SOMETHING THAT FUTURE GENERATIONS, MULTIPLE GENERATIONS WILL BENEFIT FROM.
SO THAT'S THE SECOND REASON FOR CONSIDERING DEBT BONDS FOR PUBLIC INFRASTRUCTURE.
AND THERE'S A THIRD ONE, BONDS ALSO PROMOTE SOCIOECONOMIC EQUITY.
AND THERE'S TWO COMPONENTS TO THIS THAT I WANNA TALK ABOUT,
[00:45:01]
MOBILITY AND MORBIDLY, BUT IT'S TRUE MORTALITY FIRST MOBILITY.I MENTIONED A MOMENT AGO IN A CITY, PEOPLE MOVE IN AND OUT ALL THE TIME.
WHY SHOULD CURRENT TAXPAYERS WHO MIGHT NOT BE HERE FOR A LONG TIME, OR WHO MIGHT NOT BE HERE IN 2, 3, 4, OR FIVE YEARS, WHY SHOULD THEY PAY THEIR CASH NOW FOR INFRASTRUCTURE THAT THEY MIGHT NOT BE HERE FOR BECAUSE THEY'VE MOVED OUT? AND THEN THE OPPOSITE IS TRUE.
AS I MENTIONED A MOMENT AGO, PEOPLE WHO HAVEN'T MOVED HERE YET, THEY OUGHT TO PAY FOR THE STREETS, ROADS, AND BRIDGES AND THE REST OF THE PUBLIC INFRASTRUCTURE THAT THEY'RE GOING TO BENEFIT FROM WHEN THEY MOVE INTO LONG BEACH IN 5, 10, 15, 20 YEARS.
WELL, THAT WORKS WITH DEBT SERVICE ON LONG-TERM BONDS BECAUSE TAXPAYERS FOR 30 YEARS WILL BE PAYING THE PRINCIPAL AND THE INTEREST ON THOSE BONDS.
IT THAT DOESN'T WORK IF YOU DO PAY AS YOU GO.
CAPITAL INFRASTRUCTURE FINANCING, MORTALITY ALSO FROM EQUITY PERSPECTIVE, BECAUSE HISTORICALLY DISADVANTAGED COMMUNITIES IN LONG BEACH AND EVERYWHERE ELSE, THEIR RESIDENTS HAVE SHORTER LIFESPANS THAN HISTORICALLY ADVANTAGED COMMUNITIES.
GENERALLY, LOWER INCOME COMMUNITIES GENERALLY HAVE, UH, THEIR RESIDENTS GENERALLY HAVE SHORTER LIFESPANS THAN, UH, RESIDENTS AT THE UPPER ENDS OF THE SOCIOECONOMIC SPECTRUM.
AND YOU CAN SEE THIS IN THE CENSUS DATA.
IT'S LITERALLY TRUE THAT IF YOU USE PAY AS YOU GO FINANCING FOR CAPITAL IMPROVEMENTS, THE RESIDENTS TODAY WHO ARE PAYING THAT, WHO ARE BEARING THAT COST, PAYING THAT FREIGHT, THEY WON'T LIVE LONGER, LONG ENOUGH TO BENEFIT FROM ALL OF THE INFRASTRUCTURE THAT THEY'RE PAYING FOR.
BUT MORE SOCIOECONOMICALLY ADVANTAGED RESIDENTS WHO HAVE LONGER LIFESPANS, THEY WILL BENEFIT FOR A LONGER PERIOD OF TIME.
'CAUSE ON AVERAGE THEY'RE GOING TO LIVE LONGER.
AND IT'S EVEN WORSE IF YOU DO PAY AS YOU GO FOR FROM AN EQUITY STANDPOINT, BECAUSE OF, BECAUSE OF THE WAY THAT HOUSING OPERATES IN LONG BEACH, 60% OF LONG BEACH IS RENTAL HOUSING.
SO BY DEFINITION, RENTAL HOUSING CANNOT LEGALLY BE HANDED DOWN TO THE NEXT GENERATION.
SO RESIDENTS WHO ARE RENTERS AND WOULD BE UNDER PAY AS YOU GO, FINANCING FOR INFRASTRUCTURE, WOULD BE FORCED TO PAY TO HAVE THEIR TAXES GO TOWARDS PAY AS YOU GO CAPITAL INFRASTRUCTURE.
THEY WILL NOT BE ABLE TO BEQUEATH THAT TO THEIR, UM, CHILDREN IF THEY'RE IN RENTAL HOUSING THAT THEIR CHILDREN CAN'T STAY IN.
WHEREAS AT THE HIGHER END OF THE SOCIOECONOMIC SPECTRUM, WE HAVE THE 30% OF LONG BEACH THAT RESIDES IN OWNER-OCCUPIED HOUSING.
AND EVEN IF THEY DIE EARLY, THEIR CHILDREN WILL BENEFIT BY INHERITING A HOME THAT'S GOT THAT BENEFITS FROM THIS INFRASTRUCTURE THAT'S BEEN BUILT ON THE FINANCIAL BACKS OF THE ENTIRE CITIZENRY, THE ENTIRE TAX PAYING PUBLIC ON A PAY AS YOU GO BASIS.
SO TO ME, FROM AN EQUITY STANDPOINT, BONDS HAVE IT ALL OVER PAY AS YOU GO.
AND FINALLY, I MENTIONED THE FOURTH CATEGORY, OR THE FOURTH REASON FOR LONG-TERM DEBT IS TO GET AHEAD OF RISING COSTS AND GET THE INFRASTRUCTURE IN THE GROUND QUICKER.
SO THIS FIRST SLIDE SHOWS HOW FAST CONSTRUCTION COSTS HAVE INCREASED IN CALIFORNIA IN THE LAST FIVE YEARS.
44% FOR THE CALIFORNIA CONSTRUCTION COST INDEX, A 44% INCREASE IN THE LAST FIVE YEARS.
SO YOU WANNA PUT THE INFRASTRUCTURE, ASSUMING THIS IS GOING TO CONTINUE, AND I I I CHALLENGE PUBLIC WORKS TO SAY, OH YEAH, COSTS ARE GONNA GO DOWN.
UM, ASSUMING THIS TREND CONTINUES, YOU WANT TO BUILD THE INFRASTRUCTURE AS FAST AS POSSIBLE SO AS NOT TO BE OUTSTRIPPED BY HIGH INFLATION AND CONSTRUCTION COSTS.
LOOK AT THE RELATIVELY POULTRY AMOUNTS THAT MY DEPARTMENT EARNS ON IDLE CASH.
THAT'S THE RED LINE, THAT'S THE SECOND LINE.
THE BOTTOM LINE ON THIS CHART ON THIS PI UH, BAR GRAPH, THAT'S THE INVESTMENT RETURN ON THE CITY PORTFOLIO.
IF YOU, IF THE CITY DOES PAY AS YOU GO INFRASTRUCTURE FINANCING, THEN THE CITY HAS TO PILE UP ENOUGH CASH IN ORDER TO PAY THE FULL COST WHEN IT'S TIME TO BUILD THE PROJECT.
AND THE MEANTIME, IT'S ONLY EARNED A CUMULATIVE 10.9% OVER THE LAST FIVE YEARS, WHEREAS CONSTRUCTION COSTS WENT UP BY 44%.
SO CONSTRUCTION COSTS ARE INCREASING FOUR TIMES FASTER THAN THE INTEREST THAT WE CAN EARN ON THE IDLE FUNDS THAT WE'RE TRYING TO KEEP UNTIL IT'S, WE'VE ACCUMULATED ENOUGH TO BUILD THE INFRASTRUCTURE.
[00:50:01]
I MEAN, THAT DOESN'T MAKE SENSE TO ME.YOU'RE FALLING EVER FARTHER BEHIND IF YOU DO PAY AS YOU GO INFRASTRUCTURE.
SO WHERE DOES ED LEAVE US FOR RECOMMENDATIONS? ALL RIGHT, SO LET'S TAKE ME I AM THE, UH, YOU KNOW, I'M THE BUREAUCRAT WITH THE GREEN EYE SHADE AND I SHOULD BE ARGUING FOR MAXIMUM FINANCIAL FLEXIBILITY.
I SHOULD NOT BE ARGUING TO ISSUE BONDS AND LOCK US INTO DEBT SERVICE PAYMENTS FOR 30 YEARS, RIGHT? CFOS ARE ALWAYS SAYING, YEAH, WE NEED MAXIMUM FLEXIBILITY.
AND SO DON'T ENTER INTO ANY LONG-TERM, UH, COMMITMENTS LIKE BONDS, BUT THOSE EQUITY ARGUMENTS AND THE CONSTRUCTION COST INFLATION, UH, EROSION OF THE PURCHASING POWER OF OUR CASH, UH, AND THE INTERGENERATIONAL AND SOCIOECONOMIC EQUITY THINGS THAT TRUMPS MY BUREAUCRATIC INSTINCT TO BE CONSERVATIVE ON FINANCING AND NOT ISSUE DEBT.
NOW LET'S TALK ABOUT YOU GUYS.
IF YOUR POLICY GOAL IS TO MAXIMIZE THE AMOUNT OF MEASURE A THAT'S USED FOR INFRASTRUCTURE, YOU OUGHT TO BE ARGUING FOR A HUNDRED PERCENT OF MEASURE A TO BE DEVOTED TO DEBT SERVICE ON BONDS.
BECAUSE ONCE THE BONDS ARE SOLD, THAT MEASURE A MONEY CANNOT BE USED FLEXIBLY FOR ANYTHING ELSE.
THE CITY MANAGER AND THE CITY COUNCIL AND THE COMMUNITY HAVE TO PAY THE DEBT SERVICE ON THOSE BONDS.
IT IT WHETHER IT'S 5% OR 10% OR 15 OR A HUNDRED, BUT IT SEEMS TO ME YOU OUGHT TO BE AS A COMMITTEE IF YOU'RE COMMITTED TO PUBLIC INFRASTRUCTURE AS OPPOSED TO THE PUBLIC SAFETY COMPONENT OF MEASURE A.
SEEMS TO ME YOU OUGHT TO BE GUNG-HO FOR ISSUING DEBT IN ORDER TO PUT INFRASTRUCTURE IN THE GROUND.
AND THEN FINALLY, I PROMISED A SLIDE ON WHAT HAPPENED WITH THE FIRST BOND SALE IN MAY OF 2023.
SO WE SOLD 16 AND A QUARTER MILLION DOLLARS FOR ALL THE INFRASTRUCTURE PROJECTS THAT YOU'VE HEARD ABOUT, UH, OVER FROM PUBLIC WORKS OVER THE LAST COUPLE OF YEARS.
AND THE PUBLIC WORKS DEPARTMENT SPENT ALL OF THOSE BOND PROCEEDS IN 29 MONTHS, WHICH IS ONLY HALF THE TIME THAT THEY'RE REQUIRED TO.
UNDER THE IRS RULES, WE PAID A LITTLE BIT LESS THAN 4% FOR THE TAX EXEMPT BONDS, UM, FOR THE 30 YEARS.
AND WE HAVE THREE AND A HALF MILLION DOLLARS OF MEASURE A REVENUE COMMITTED TO DEBT SERVICE.
SO THERE'S THAT LOSS OF FLEXIBILITY.
THREE AND A HALF MILLION DOLLARS IS COMMITTED FOR THE NEXT 27 YEARS TOWARDS PAYING DEBT SERVICE ON THAT $60 MILLION OF BONDS.
YOU GOT $60 MILLION OF INFRASTRUCTURE IN THE GROUND QUICKLY BEFORE INFLATION COULD ERODE ITS VALUE.
UM, AND YOU PROMOTED, UH, THE CITY PROMOTED ECONOMIC, SOCIOECONOMIC AND INTERGENERATIONAL EQUITY, BUT THE CITY LOST FINANCIAL FLEXIBILITY OF THREE AND A HALF MILLION DOLLARS.
I NORMALLY WOULD, I'LL ASK THE REST OF YOU GUYS TO SPEAK UP FIRST, BUT I'M GONNA ASK FOR YOUR PATIENCE AND ALLOW ME TO SPEAK FIRST.
UM, I APPRECIATE THE, THE WHAT YOU PRESENTED AND I DON'T THINK THAT WAS OUR REQUEST AS FAR AS TRYING TO UNDERSTAND WHY SOMEONE WOULD DO BONDS.
I THINK MOST OF US UNDERSTAND THE CONCEPT OF SPECIALTY OF TIME, THAT IT'S, IT'S BETTER TO HANDLE THE PROBLEM NOW BECAUSE IF WE DON'T HANDLE THE PROBLEM NOW, GET THE MONEY NOW AND HANDLE IT, THEN IT'S JUST GONNA DETERIORATE AND IT'S GONNA COST MORE 'CAUSE OF INFLATION.
AND BECAUSE OF WEAR AND TEAR, THAT ALONE HELPS THE UNDERSTANDING AS TO WHY ANYONE WOULD WANT TO GET BONDS.
AND SO THE UNDERSTANDING, THE EQUITY AND THE MORTALITY OR WHO'S PAYING IN THE END, YOU KNOW, THE TAXPAYERS ARE PAYING.
I GUESS MY ORIGINAL REQUEST, AND I THINK WE CAN ALWAYS GO BACK TO THE MINUTES, BUT THEY'RE VERY, UH, NOT DETAILED, BUT WE ASKED FOR A HISTORY OF THAT DECISION WHEN THE DECISION WAS MADE TO START SELLING BONDS, HOW MUCH WAS AUTHORIZED TO SELL, HOW MUCH YOU HAVE SPENT, AT WHAT RATE DID YOU GET IT AND, AND WHERE IS IT AND HOW MUCH WAS ALREADY ALLOCATED TO BE SPENT AND WHAT WAS GONNA BE COMING IN THE FUTURE, YOU KNOW, WHAT WAS THE FUTURE? YOU ALSO HAVE THE AUTHORIZATION FOR THREE MORE BOND SALES, BECAUSE I KEPT ON HEARING IN OUR PAST YEAR AND A HALF YOU SAID, WELL, WE'VE SOLD ONE SET OF BONDS AND WE'RE ABOUT TO SELL ANOTHER ONE, BUT WE'RE WAITING ON INTEREST.
SO WE SAID, CAN YOU SHARE YOUR PLAN OF HOW AND WHEN YOU WERE GONNA RAISE THE BONDS OR, OR ISSUE THEM OUT? AND THEN AS YOU ALLOCATED THEM, WHERE THEY WERE GONNA BE ALLOCATED IN THE, IN THE PROJECTS TO GET DONE.
SO, GREAT LOGIC AS TO WHY NOBODY'S HERE ARGUING ABOUT WHY DO BONDS.
WE SUPPORT IT, UNDERSTAND THAT.
I WANT TO UNDERSTAND WHAT'S THE PLAN.
[00:55:01]
WELL, LET ME ANSWER YOUR QUESTIONS IN SEQUENCE CHAIR NUMBER ONE, I'M NOT GONNA GET INTO THE INTERNAL DELIBERATIONS OF HOW WE DECIDED TO SELL BONDS.
THAT'S WAY OUTSIDE THE PURVIEW OF THIS COMMITTEE.
WE DECIDED TO, WE WENT TO THE CITY COUNCIL AND ASKED FOR AUTHORITY TO SELL BONDS IN EARLY 2023, AND WE SOLD THEM IN MAY OF 2023.
AND THEN I GAVE YOU THE REPORT ON WHAT HAPPENED WITH THOSE BONDS.
UH, THE NEXT PLAN IS BEFORE YOU GO AGAIN, THAT'S ALL WE WANTED.
WE WE'RE NOT SAYING THAT WE'RE COMING IN AND, AND ASKING FOR PERMISSION OR WHATEVER.
WE'RE IN THIS PERIOD, WE APPROACHED CITY COUNCIL, CITY COUNCIL AUTHORIZED THIS.
SO I DIDN'T WANNA HAVE TO GO LOOKING IN 20 22, 20 23 OR 2024, WHATEVER, JUST GIVING US THE INFORMATION THAT THIS IS THE AUTHORIZATION THAT WE HAVE TO DO AND THIS IS WHAT WE'RE DOING.
SO IT IT'S NOT QUESTIONING AND, AND WHEN YOU SAY THAT IT'S BEYOND THE AUTHORITY OF THE COMMISSION TO ASK THAT QUESTION, UH, IT'S, IT'S A SIMPLE QUESTION.
WHEN DID YOU GET THE AUTHORIZATION AND WHAT WAS THE AUTHORIZATION FOR AND WHAT'S THE PLAN IN EXECUTING THAT? THAT WAS IT.
WE ASKED FOR THE AUTHORIZATION IN APRIL OF 2023.
WE GOT THE AUTHORIZATION IN APRIL OF 2023.
IT WAS FOR 16 A QUARTER MILLION DOLLARS.
WE SOLD THE BONDS IN MAY OF 2023 AND THE BOND PROCEEDS HAVE BEEN SPENT, WE ARE LIKELY TO GO TO THE CITY COUNCIL AGAIN THIS SUMMER ASKING FOR THE NEXT TRANCHE, ANYWHERE FROM 50 TO $67 MILLION, UH, WITH A PLAN TO SPEND IT, UH, PERHAPS AS QUICKLY AS PUBLIC WORKS SPEND IT SPENT THE FIRST ROUND AND THEN IN TWO OR THREE YEARS IT'S UNKNOWN AT THIS TIME, WE WOULD GO BACK TO CITY COUNCIL TO REQUEST AUTHORIZATION TO ISSUE THE LAST TRANCHE OF $50 MILLION OF BONDS.
SO CAN YOU REPEAT THE, THE, THE FIRST SET YOU SAID WAS FOR 60 50.
OH, THE, YEAH, THE INITIAL SET.
YOU CAN SEE IT ON THE FIRST LINE OF THE SLIDE.
THAT'S UP 60 AND A QUARTER MILLION.
AND THEN WE'RE GOING TO GO TO CITY COUNCIL THIS SUMMER ASKING FOR AUTHORIZATION TO ISSUE LEASE REVENUE BONDS IN THE SECOND TRANCHE OF ANYWHERE FROM 50 TO $67 MILLION.
AND THEN A THIRD TRANCHE, TWO OR THREE YEARS AFTER THAT.
ALL OF THAT BEING SUBJECT TO PUBLIC WORKS CAPACITY TO SPEND THE BOND PROCEEDS TO INTEREST RATES, LIKE YOU SAID CHAIR, AND ALSO TO HOW MUCH REVENUE THERE IS IN MEASURE A AND HOW MUCH CAN BE DEVOTED TO DEBT SERVICE.
THAT FLEXIBILITY ARGUMENT, I SPENT SOME SO MUCH TIME ON.
SO THEN, AND JUST GOING BACK IN THERE.
SO, UM, AND WHEN YOU WENT GO TO THE, UH, COUNCIL, DO YOU GO IN SAYING, AND THIS IS THE INTENT OF WHERE WE'RE GONNA SPEND THE MONEY AND IT'S ALREADY BUDGETED IN, IN A LINE ITEM OR HOW, HOW, UM, WE GO TO COUNCIL WITH A MIX? UM, UH, THERE WILL BE MUCH MORE IN THIS BOND ISSUE THAN JUST THE MEASURE A MONEY.
UM, 'CAUSE THERE ARE SOME OTHER PROJECTS THAT ARE OUTSIDE MEASURE A THAT ARE BEING FUNDED WITH BOND PROCEEDS.
SO FOR THOSE, UH, WE IDENTIFY WHICH AMOUNTS COUNCIL'S ALREADY APPROVED TO BE PAID FOR WITH AN EVENTUAL BOND ISSUE.
UM, AND YEAH, I DON'T THINK WE WENT IN 2023 WITH A SPECIFIC LIST OF MEASURE A PROJECTS.
UM, BUT WE SAID IT WAS FOR MEASURE A INFRASTRUCTURE PROJECTS.
SO I GUESS THAT'S, THAT'S WHAT I WAS HOPING TO SEE AS TO WHAT WAS THE APPROACH THAT YOU WENT TO COUNCIL.
'CAUSE IF YOU'RE SAYING, THIS IS MY UNDERSTANDING IN, IN A NUTSHELL IN LAYMAN'S TERMS, IN EARLY 2023, YOU SAID WE WANNA SPEND $60.25 MILLION IN BONDS OR UP TO THAT AMOUNT.
YOU EXECUTED THOSE BONDS, YOU GAVE THEM MONEY TO PUBLIC WORKS, AND THEN THEY SPENT IT AND PUT IT ONTO INFRASTRUCTURE.
BUT WHAT I'M HEARING YOU SAY IS THAT FIRST ORIGINAL AMOUNT OF BONDS DID NOT HAVE A LISTING OF PROJECTS THAT WAS TO BE HANDLED, OR IT, IT DID NOT HAVE A PROJECT BY PROJECT LIST, I DON'T THINK, BUT IT MIGHT HAVE NADER BECAUSE THEY HAVE TO APPROVE, THEY HAVE TO BUDGET AND IT GOTTA BE BUDGETED.
I COULD ADD TO THAT AS WELL, JUST AS FAR AS THE, THE APPROVAL PROCESS, UH, DIRECTOR KEVIN, I BELIEVE HE'S TALKING ABOUT THE, THE APPROVAL OF THE ACTUAL ISSUANCE OF THE, THE BOND.
BUT AS FAR AS WHERE THAT MONEY WOULD GO WAS PART OF THE BUDGET PROCESS.
SO WHEN WE ACTUALLY APPROVED THE PLAN FOR BONDS IN 2023, IT WAS THE BRAND NEW FIVE YEAR, UM, PROGRAM, THE CIP PROGRAM.
SO IT WAS A FIVE YEAR PLAN PLAN TO ISSUE THAT BOND EVERY OTHER YEAR.
AND EVERY YEAR WE BROUGHT A LIST OF WHAT THOSE PROJECTS WOULD BE FUNDED WITH AS PART OF THE CIP PROJECT.
SO YOU WERE ABLE TO SEE IT, BUT THEN THE BONDS WERE ISSUED WHEN THEY WERE NEEDED.
SO THAT WAS JUST TWO SEPARATE AUTHORITIES WHERE WE WERE SHOWING THE PLANNING AND THEN THE, A AUTHORITY OF THE BOND TO ACTUALLY ISSUE THE BOND.
[01:00:01]
THE BONDS, WE WOULD'VE PROBABLY NOT HAD MUCH OF A PROGRAM AT ALL FOR THIS FIRST FIVE YEARS.SO WE DID HAVE THAT PLANNED OUT.
AND, AND, AND AGAIN, THAT'S WHAT I'M ASKING FOR.
SO, BECAUSE I THINK FOR PUBLIC PERCEPTION THAT LIKE EVEN THIS 2026 ROUND OF BONDS THAT YOU'RE GOING, YOU'RE SAYING WE'RE GONNA GO BETWEEN 50 AND $67 MILLION DEPENDING, AND I'M SURE A LOT OF THAT DECISION OF HOW MUCH YOU'RE GONNA EXECUTE IS GONNA BE DEPENDENT UPON, YOU KNOW, WHAT, WHAT YOU'RE GONNA GET FOR THE BONDS, YOU KNOW, HOW MUCH IS IT GONNA COST YOU, BUT THAT YOU, YOU ARE THEN GONNA HAVE A LIST OF PROJECTS THAT, HEY, IF WE GET THIS $50 MILLION, HERE'S OUR LIST OF PROJECTS THAT WE'RE GONNA BE ABLE TO TACKLE TODAY INSTEAD OF 20 YEARS FROM NOW.
SO Y'ALL ARE GONNA HAVE THAT LIST.
IS THERE ANY WAY THAT WE CAN SEE THAT LIST BEFORE? SO JUST AGAIN, SO THAT IT'S PART OF THE PUBLIC PROCESS OF SAYING, WE'RE GOING FOR BONDS AGAIN.
YOU KNOW, HERE'S HOPE, WHAT WE'RE HOPING TO GET, HOW MUCH WE'RE GONNA GET OUT OF IT, AND HERE'S WHERE WE INTEND TO ATTACK THE BEAST.
SO YOU'LL SEE IT AS PART OF THE BUDGET PROCESS, WHICH YOU'RE ALREADY GOING TO BE INVOLVED IN AS YOU WERE LAST YEAR.
YEAH, BUT I DON'T THINK LAST YEAR'S BUDGET HAD A LISTING OF A WHOLE BUNCH OF PROJECTS THAT WERE FORECASTED ALREADY OR APPROVED FOR 26, 7, 8 SPENDING.
AND I THINK IT'S ALL JUST TIMING.
SO THIS BOND THAT'S GOING IN 2026 HAS ALREADY BEEN COMMITTED.
THOSE PROJECTS THAT WERE COMMITTED WERE PART OF 2020 FIVE'S BUDGET.
SO WE SAW IN THE INFRASTRUCTURE BUDGET FOR 2025, A HUGE JUMP OF $65.5 MILLION OF PLANNED BUDGET PROGRAMS. PLUS IN THAT YEAR WE IDENTIFIED STATION NINE THAT HAD A $22 MILLION FUNDING GAP.
SO THOSE PROJECTS HAVE BEEN PUSHING AND PLANNED THE FUNDING FOR IT IS WHAT THE 26 BOND WILL BE FOR.
THEN WHEN YOU HAVE THIS BOND COMING IN 2027, YOU'LL SEE AS PART OF THIS BUDGET, THE LAST ROUND OF PLANNED PROJECTS FOR THIS LAST ROUND.
BUT THEN THE BUDGET FOR THE, THE RAISING FOR THAT FUND, UH, THOSE PLANNED PROJECTS WILL COME A COUPLE YEARS AFTER.
SO IT'S JUST TIMING WITH THE ACTUAL PROJECTS VERSUS THE ACTUAL BOND, WHICH WE'VE HAD THE PROJECTS FIRST AND THEN GO WITH THE BOND.
SO, UM, I, IF, IF WE CAN AT LEAST AT THE NEXT MEETING, JUST GET US A RECAP OF THAT AND SAYING, OKAY, JUST SO Y'ALL KNOW HERE, IT WAS ALREADY IN THE APPROVED BUDGET, THESE WERE THE PROJECTS AND THESE ARE THE ONES THAT ARE ATTACKING BECAUSE I, I MEAN, I, I JUST WANT TO CLARIFY IF THAT STATION NINE IS PART OF THAT 65.5, WE'RE SAYING STATION NINE IS TAKING A THIRD OF THIS 30 YEAR MONEY THAT WE ARE HOPING IT WAS IN ADDITION.
SO THE 65.5 MILLION WAS THE PLAN.
SECOND ROUND PROJECTS, PLUS 22 MILLION FOR THE FIRE STATION.
AND SO THAT WAS THE TWO GROUPS THERE.
ALRIGHT, ANYBODY ELSE HAVE ANY QUE OKAY, THANKS.
UH, JUST REAL BRIEF, UM, WHAT, UH, ONE I WOULDN'T SUPPORT A HUNDRED PERCENT OF THE MEASURE AB DEBT FINANCE FOR INFRASTRUCTURE.
I DON'T, I DON'T THINK IT'S A GOOD IDEA OR, OR, OR
UM, WHAT IS THE, UM, ANNUAL DEBT SERVICE AS A PERCENT OF THE OVERALL MEASURE A REVENUE? AND IS THAT YEAR OVER YEAR, IS THERE A TARGET OR IS IT, HAVE WE SEEN IT TREND DIFFERENTLY? IT'S ABOUT 5%, THREE AND A HALF PER THE, THE CURRENT BONDS OUTSTANDING ARE THREE AND A HALF MILLION DOLLARS A YEAR OUT OF ABOUT 70 MILLION OF CURRENT MEASURE A REVENUE.
AND, AND THE THREE AND A HALF MILLION IS, IS THAT ALL ROUNDS OF BOND ISSUANCE OR JUST THE 60 MILLION? THAT'S JUST THE ONES THAT WE'VE ALREADY ISSUED, CORRECT.
AND THEN THERE, THERE WAS A PREVIOUS ONE? NOPE, JUST ONE.
SO THIS NEXT ONE, THIS SUMMER WOULD BE THE SECOND EVER YES.
AND IT'S LIKELY TO BE AT LEAST THREE AND A HALF, MAYBE 4 MILLION.
AGAIN, IT DEPENDS ON WHETHER IT'S 50 OR 67.
AND AS THE CHAIR SAID, DEPENDS CRUCIALLY ON INTEREST RATES, UM, IN THE SUMMER WHEN WE SAW.
AND, AND JUST TO ADD ON THAT, I THINK THEY ALSO ADDED A SLIDE THAT THEY WERE, WERE SHOWING A PROJECTION, UM, OF THE, IT IS GONNA GO UP.
SO IT WAS AROUND FOUR, FOUR AND A HALF THAT IT WAS GONNA GO UP TO, BECAUSE THIS ONE'S GONNA BE A MORE EXPENSIVE ROUND, IS MY UNDERSTANDING.
AND THEN THE OFFSET AFTER 2029, I THOUGHT THAT WE SAW A NUMBER THAT WAS IN THE ROUND 11, A 12, 12 AND A HALF MILLION.
SO IT, IT, IT'S GONNA GO UP TO ABOUT A LITTLE MORE THAN 10% OF THE MONIES.
'CAUSE HOPEFULLY WE'RE GONNA GO UP TO MORE.
SO INSTEAD OF 60, 70 MILLION A YEAR, WE'RE GONNA BE GETTING IN THE A HUNDRED MILLION RANGE.
WE SHOULD BE IN THE MID NINETIES BY, UH, FISCAL YEAR 28 WHEN MEASURE A BOUNCES BACK TO 1% FROM ITS CURRENT, THREE QUARTERS OF A PERCENT.
[01:05:01]
ON THE SUBJECT OF THE 1%, WOULD THAT, UH, ALLOW THE CITY TO PURSUE ADDITIONAL BONDS OR WOULD THERE ALREADY BE SOME, UH, ALLOCATION IN MIND FOR HOW THAT ADDITIONAL, UH, FUNDING WOULD BE USED? UM, THAT, THAT ADDITIONAL 1% IS, UH, IT'S LIKE $25 MILLION, BUT THE, THE BONDS ARE BACKED BY THE ENTIRE GENERAL FUND, WHICH IS $800 MILLION OF REVENUE.SO BOUNCING BACK TO 1% DOESN'T REALLY AFFECT OUR OVERALL DEBT CAPACITY.
SO I GUESS THAT'S A LONG-WINDED WAY OF SAYING NO, NO, I, I THINK WE HAVE ONE MORE QUESTION HERE.
WELL, I LOVED THAT PRESENTATION.
IT'S AN INTERESTING APPROACH TO THE WHOLE SUBJECT.
UM, BUT I DID HAVE A COUPLE OF LITTLE QUESTIONS HERE AND THERE.
UM, SO, UM, PAY AS YOU GO, THERE IS STILL MORE INFRASTRUCTURE MONEY THAT IS BEING, BEING, UM, SPENT FROM THE GENERAL FUND, RIGHT? SOME ISN'T THERE STILL, THERE'S STILL OTHER, THERE'S OTHER INFRASTRUCTURE MONEY IN THE GENERAL FUND, NOT JUST HERE IN MEASURE A, AM I CORRECT? IT'S VERY LIMITED IF THERE ARE, THERE SOMETIMES ONE-OFF PROJECTS THAT ARE APPROVED OFF THE, UM, THE BUDGET DEVELOPMENT PROCESS.
BUT RIGHT NOW, JUST GENERAL CAPITAL, THE GENERAL FUND IS NOT REALLY IN THE POSITION TO MAKE MAJOR TRANSFERS TO THE CAPITAL PROGRAM.
WELL THEN, ALRIGHT, THEN I WAS GONNA SAY THAT THAT WOULD ALSO REPRESENT PAY AS YOU GO MONEY, BUT OKAY.
I GUESS IT DOESN'T, UM, I DON'T TOTALLY AGREE WITH YOUR, WITH YOUR, YOUR CONCLUSIONS ON YOUR 10 ON THE, UM, THE CARE, THE, UH, INTEREST RATE, UH, VERSUS THE, BECAUSE, UM, IF YOU'RE PAYING AS YOU GO, YOU'RE NOT REALLY ACCUMULATING THAT MONEY.
YOU'RE, YOU'RE, YOU'RE PAYING FOR THOSE P PROJECTS, YOU'RE NOT SAVING UP $22 MILLION TO BUILD THE FIRE STATION.
YOU'RE, YOU'RE PROBABLY, YOU KNOW, PAYING FOR AS MUCH AS YOU CAN, WHATEVER PROJECTS YOU CAN.
UM, YOU'RE NOT JUST LIKE STOPPING WORK.
ANYWAY, UM, AND, UM, BUT I THOUGHT IT WAS A VERY INTERESTING APPROACH TO, UM, EXPLAINING THINGS.
UM, FOR THE PUBLIC, IT MIGHT BE REALLY THE, I'M NOT SURE THE PUBLIC UNDERSTANDS HOW THE MONEY'S BEING LEVERAGED TO THEIR BENEFIT.
AND, UM, YOU KNOW, THERE, THERE'S A LOT OF WHINGING IN THE, ABOUT THINGS NOT BEING DONE AND YET THERE'S LOTS OF EFFORT TO GET THEM DONE.
AND I DON'T THINK PEOPLE UNDERSTAND THAT.
UM, BUT WHAT DO WE DO THEN ABOUT THE SHORTFALL, EVEN WITH EVERYTHING THAT'S HAPPENING, THE, THE OTHER THREE OR $4 BILLION MM-HMM
WELL, FIRST EVERY UNIT OF GOVERNMENT IN THE UNITED STATES FACES THAT SECOND, UM, THE THREE AND A HALF BILLION DOLLAR, UH, DESIRED LEVEL IS, IS THE IDEAL LEVEL.
AND JUST LIKE WITH OUR SERVICE LEVELS THROUGHOUT, IN EVERY ARENA OF THE CITY, WE WOULD LIKE TO HAVE SERVICE LEVELS HIGHER IN PUBLIC SAFETY AND IN PARKS AND IN RECREATION.
AND ON AN OPERATING ON AN OPERATING BUDGET, THE OPERATING BUDGET IS LIMITED.
SO THE, THE MAYOR AND THE CITY MANAGER AND THE MAYOR AND THE CITY COUNCIL DO THE BEST THEY CAN WITH THE LIMITED RESOURCES THEY HAVE.
AND THAT'S GOING TO HAVE TO BE THE APPROACH FOR INFRASTRUCTURE IN THE SHORT RUN, THE CHAIR MENTIONED, UM, A CITIZENS INITIATIVE THAT MIGHT, UH, THAT IF, UM, IT MAKES THE BALLOT AND IS PASSED IN NOVEMBER WOULD GENERATE SOME MORE, UH, PROPERTY TAX REVENUE, SOME NEW PROPERTY TAX REVENUE THAT WOULD GO TO INFRASTRUCTURE AND THAT WOULD HELP.
UM, BUT YOU MIGHT RECALL FROM THE MARCH PRESENTATION, I SAID YOU COULD ELIMINATE THE ENTIRE GENERAL FUND OF THE CITY OF LONG BEACH EXCEPT FOR THE PUBLIC WORKS DEPARTMENT AND HAVE ENOUGH MONEY TO BOND FOR THE ENTIRE, BACK THEN IT WAS A FIVE AND A HALF BILLION DOLLAR SHORTFALL.
UM, YOU'D HAVE TO ELIMINATE EVERY SINGLE GENERAL FUND SERVICES, LIBRARY, PARKS, RECREATION, POLICE, FIRE, COMMUNITY DEVELOPMENT, THE, THE GOVERNMENTAL INFRASTRUCTURE.
UM, THAT'S WHAT IT WOULD TAKE TO, TO FILL THE ENTIRE GAP.
AND YOU KNOW, YOU ALL APPROPRIATELY RECOILED IN HORROR AT THAT NOTION, BUT THAT'S THE TYRANNY OF THE ARITHMETIC.
[01:10:02]
OKAY.SO WITH THAT SAID, AND Y'ALL CAN THINK A LITTLE BIT AS WE ASK REAL QUICK FOR ANY PUBLIC COMMENTS, SEEING NONE, UM, BEING NONE.
SO MEMBERS, IF THERE'S FURTHER DISCUSSION, I I DO WANNA CLARIFY A REQUEST THAT I ASKED IF WE CAN GET, I WOULD LIKE TO SEE ROUND ONE AUTHORIZED ON 60 POINT 25.
THIS IS WHERE THE PROJECTS WERE.
AND THIS IS HOW MUCH WAS SPENT ROUND 2 20, 26 FOR THE 50 TO WHAT, 67 MILLION YOU SAID? PROJECTS THAT WERE APPROVED IN, OR THAT ARE CURRENTLY APPROVED IN 2025, UH, BUDGET THAT IS GOING TO BE FUNDED BY THAT.
AND, AND, AND THEN ALSO ROUND THREE PLANS, WHATEVER THE ROUND THREE PLANS ARE.
AND IF THERE'S, I'M SURE SOMEWHERES IN THERE, THERE'S ALREADY PLANS OF WHERE THAT, THAT 20, THE ROUND THREE MONIES ARE GONNA GO.
BUT TENTATIVELY THESE ARE WHERE THE ROUND MONIES ARE GONNA GO.
AND THEN THE SECOND ITEM IS JUST A FORECAST OF THE COSTS OVER TIME, OVER THE NEXT 30 YEARS, WHETHER, I KNOW THERE'S ALREADY SOME FORECAST OF THE COST FOR ROUND TWO AND FORECAST FOR ROUND THREE POINT OF ORDER.
UM, I DON'T KNOW WHAT THE, THE COMMITTEE'S PROCESS HAS BEEN.
AND UM, I'M GLAD YOU'RE SHARING YOUR PERSPECTIVE, WHAT YOU WOULD LIKE TO SEE.
BUT USUALLY IT'S LIKE A MOTION AND THE GROUP DECIDES AND VOTES TO SUPPORT VERSUS ONE MEMBER OR ONE.
UM, WELL I'M, I'M ASKING THE COMMITTEE IF, IF, IF WE CAN ASK, DO THIS BECAUSE OH, I I THOUGHT YOU WERE JUST TELLING THEM WHAT YOU WANTED TO KNOW.
NO, I SAID I'M, I WOULD LIKE TO MAKE A REQUEST AND THAT'S WHERE I'M COMING TO HERE SO THAT WE CAN TALK ABOUT IT, WHETHER THIS CAN BE A REQUEST BECAUSE WE HAVE TO MAKE A MOTION FOR IT TO GET AGENDIZED.
SO THAT'S WHY I WAS BRINGING IT HERE SO THAT WE COULD TALK ABOUT IT.
IF, AND THIS IS WHAT I'M ASKING IS, 'CAUSE I THOUGHT WE ORIGINALLY WERE WANTING TO GET A BREAKDOWN OF HERE'S THE MONEY THAT CAME AND HERE'S WHAT THE PROJECTS WERE THE NEXT ROUND AND EVEN THE NEXT ROUND, AND THEN POTENTIAL COSTS.
SO CAN WE GET THAT LEVEL OF, OF DETAIL? AND IT'S JUST SO THAT IT'S, IT'S IT'S REFRESHER, ESPECIALLY IF THEY'RE GONNA GO OUT THIS SUMMER AND THEN GOING TO COUNCIL, UH, ABOUT ROUND TWO.
I THINK YOU KNOW, IT, IT'S A GOOD WAY TO JUST PUBLICLY SAY, HEY, THIS IS THE ROUND TWO MONIES AND THESE ARE THE PROJECTS THAT IT'S GONNA GO OUT FOR.
AND THEN WE JUST MAKE THAT PUBLIC.
SO WHAT ARE YOUR THOUGHTS? WELL, I GUESS POINT OF ORDER.
DOES THIS COMMITTEE OPERATE BY ROBERTS RULES OF ORDER AS BEST AS WE KNOW? YES, IT DOES.
SO MY UNDERSTANDING, THERE'S ALREADY A MOTION IN A SECOND ON THE FLOOR AND YOU'D HAVE TO MAKE ANOTHER SUBSTITUTE MOTION OR, OR A SEPARATE MOTION TO DISCUSS THOSE ITEMS FOR THE BODY TO VOTE ON, UM, FOR, FOR STAFF DIRECTION OR INFORMATION REPORT.
BUT YOU KNOW, I'M, I'M NOT THE CHAIR, BUT I, I DO KNOW ROBERTS'S ORDER AND IT JUST SEEMS LIKE WE ARE OUT OF ORDER OF ORDER FROM THE PENDING MOTION THAT'S ACTIVE.
SO WE, WE WOULD HAVE TO GET THROUGH THIS ONE FIRST BEFORE MAKING ANOTHER ONE.
AND UM, I THINK AS WELL, IF YOU WANT TO MAKE A NEW AGENDA ITEM REQUEST THAT'S NOT IN THIS AGENDA ITEM, THERE WOULD HAVE TO BE AN AGENDA ITEM TO MAKE AGENDA ITEM REQUESTS, WHICH, UM, WE HAVE AT THE VERY END, WE, WE, YEAH.
SO THAT WOULD PROBABLY BE THE APPROPRIATE PLACE, UH, TO, TO MAKE THESE REQUESTS.
SO WHERE WOULD WE, AGAIN, YOU KNOW, I, I'M A LAYMAN, I'M NOT INVOLVED IN HOW TO DO THIS.
AND MY, MY THING IS WHERE DO WE HAVE A DISCUSSION ABOUT, HEY, THIS PRESENTATION MAYBE DIDN'T GET WHAT I WAS EXPECTING OR THOUGHT I WAS EXPECTING, AND THEN ASKING THE COMMITTEE TO SAY, WHAT DO Y'ALL THINK ABOUT US DOING THIS? WHERE DO YOU HAVE THAT LEVEL OF DISCUSSION? YOU CAN YOU, SO MY, MY INTERPRETATION SHOULD BE AN AGENDA ITEM.
YOU HAVE TO NOTICE WHAT YOU'RE GONNA TALK ABOUT BEFORE WE TALK ABOUT IT SEVEN, TWO HOURS IN ADVANCE.
SO IF IT'S NOT, YOU KNOW, ON THE AGENDA SPECIFICALLY WHAT WE'RE GONNA TALK ABOUT, WE CAN MAKE A AGENDA ITEM IN THE FUTURE TO DISCUSS FUTURE INFORMATION OR COLLECTION OR MISUNDERSTANDING.
BUT AT LEAST FOR THIS AGENDA ITEM AND THIS MEETING WE'RE IN RIGHT NOW, IT IT, IT'S OUTTA ORDER.
UM, THIS IS JT AT, UM, WITH THE CITY CLERK'S OFFICE.
SO I BELIEVE, UM, ASHLEY, CORRECT ME IF I'M WRONG, BUT I THINK YOU CAN MAKE A FRIENDLY, A MOTION MOTION TO THE CURRENT MOTION IF YOU'D LIKE TO REQUEST LIKE ADDITIONAL INFORMATION.
IS THAT WHAT YOU'RE REQUESTING? WELL AGAIN, I DON'T KNOW THE PROCESS BECAUSE WE HAD AN AGENDA ITEM TO HAVE A CONVERSATION ABOUT THE BONDS MEASURE A BONDS AND THE ACTIVITY AND HOW THEY'RE, WHAT THEY'RE DOING.
[01:15:01]
WE GOT A PARTIAL PRESENTATION.THE LAST SLIDE IS VERY CLOSE TO WHAT I THOUGHT WE HAD ASKED FOR.
SO IF WE'RE WANTING TO SEE, OR I'M WANTING TO RECOMMEND AND MOVE FOR THIS COMMITTEE TO VIEW THE REST OF THE BONDS, WHICH IS WHAT I THOUGHT WE HAD SAID.
WHAT WAS THE HISTORY OF THE ORIGINAL BONDS? WHAT WERE THE FUTURE OF THE NEXT BONDS COMING OUT AND WHAT WERE THEY GONNA FUND AND THE COST, THAT'S WHAT WE HAD REQUESTED.
AND SO IF I'M FEELING THAT IT ISN'T GIVING US THE HISTORY, THE FUTURE PLANS AND THE COSTS, HOW DO WE RECTIFY THAT TO GET ADDITIONAL INFORMATION? THAT'S WHERE I'M LOST.
IF IT NEEDS TO BE A FRIENDLY AMENDMENT TO TRY TO PROPOSE SOMETHING FOR THE FUTURE, DO WE NEED TO WAIT TILL THE END FOR CONVERSATION OR IS THIS SOMETHING THAT WE JUST ARE HERE NOT HAVING A CONVERSATION BUT JUST YES, YES, YES.
AND BE, UH, UH, A BLANKET APPROVAL IF I MAY? YES, PLEASE.
SO I'M LOOKING AT THE REQUEST FOR TODAY'S AGENDA AND IT WAS A WORKSHOP ON BONDS WITH REGARD TO FUNDS, PLANS AND PROJECT STATUS.
WHAT I'M HEARING IS THAT YOU ARE LOOKING FOR ADDITIONAL INFORMATION FOR FUTURE, UH, FUTURE PLANS AND COSTS, WHICH, YOU KNOW, MAYBE WE CAN DEBATE THE SEMANTICS OF THE INTERPRETATION OF THAT.
BUT BASED UPON THE LANGUAGE THAT WAS PROVIDED FOR TODAY'S AGENDA, THAT WAS THE PRESENTATION.
WHAT I AM HEARING IS THAT IT'S JUST SOMETHING YOU'RE LOOKING FOR ADDITIONAL INFORMATION AND THAT WOULD BE SOMETHING THAT WOULD NEED TO BE BROUGHT BACK AND WE WOULD NEED THAT, THE BODY TO VOTE ON THAT.
WE COULD DO A SUPPLEMENTAL FOR THE PURPOSE OF TODAY TO HAVE THAT BROUGHT BACK FOR THE NEXT TO BE ADDED TO THE AGENDA ITEM TO BE BROUGHT BACK.
EITHER WAY THE INFORMATION WILL NEED TO BE BROUGHT BACK TO THE BODY AND WE NEED THAT VOTED ON.
SO YOU SAID THOUGH THE REQUEST WAS FUNDS, PLANS AND PROJECTS.
AND YOU'RE SAYING THAT THIS PRESENTATION SHOWS ALL THE FUNDS AND THE PLANS FOR BONDS AND THE PROJECTS THAT THIS SHOWS THAT WHEN IT'S JUST SHOWING ONE, ONE OF THE, BECAUSE WE KNEW THERE WERE THREE POTENTIAL BOND, UH, RAISING REVENUES AND SO WE KNEW ABOUT THE THREE.
I'M SEEING THE FIRST ONE ONLY.
I'M NOT SEEING THE PROJECTS FOR THAT.
I'M NOT SEEING THE SECOND ONE AND PROJECTS AND I'M NOT SEEING THE THIRD.
SO HOW IS IT THAT YOU ARE SAYING WITH A STRAIGHT FACE THAT IT IS MEETING THE REQUEST OF FUND PLANS? ALL I'M DOING IS ASKING FOR A CLARIFICATION OF HOW TO GET THE REST OF THAT.
I'M NOT TRYING TO BE, SO HOW CAN I GET A CLARIFICATION? WE COULD DO A SUPPLEMENTAL MOTION.
OKAY, YOU'RE WELCOME TO DO THAT.
PER ROBERT'S RULES DO A SUPPLEMENTAL MOTION TO HAVE THE BODY VOTE ON ADDITIONAL INFORMATION BEING BROUGHT BACK.
BUT COMMISSIONER UNTUCK IS, IS CORRECT THAT WE ARE OUT OF ORDER BECAUSE THE ITEM THAT IS BEFORE US IS JUST A RECEIVE AND FILE.
SO WHAT I'M HEARING IS THAT YOU'RE ASKING FOR ADDITIONAL INFORMATION AND THAT WOULD JUST NEED TO BE VOTED ON BY THE BODY EITHER THROUGH A SUPPLEMENTAL RIGHT NOW OR ON THE NEXT AGENDA ITEM.
UM, I JUST, AT LEAST REGARDING THE FUNDS AND THE FINANCES, I THINK THAT IS KIND OF WHAT WE HEARD AND AT LEAST FOR THE PROJECTS WE DO, UH, IT SEEMS TO ME AT LEAST FOR THE PREVIOUS AGENDA ITEM THAT WE'VE GOTTEN AT LEAST AN UPDATE ON THE PROJECTS AND THE STATUS AND THAT WE DO FREQUENTLY GET THESE UPDATES ENOUGH TO WHERE THAT DOES SATISFY AT LEAST WHAT WAS INITIALLY ASKED.
I DON'T THINK THERE'S REALLY A NEED TO HAVE ANOTHER AGENDA ITEM TO TALK ABOUT SOMETHING THAT WE'VE ALREADY DISCUSSED.
ANYBODY ELSE? SO IF I CAN THEN ASK THIS GROUP, IF WE CAN ASK FOR WHAT I HAD, IF I HEAR WHAT YOU'RE SAYING, I DIDN'T, I I SAW THE PROJECTS THAT ARE ALREADY PERFORMED UNDER THE PRIOR YEAR BUDGETS.
THAT WAS WHAT OUR PROJECT LIST WAS SHOWING.
I'M NOT SEEING THE NEXT MEASURE OF BONDS.
AND SO THAT'S WHAT I'M ASKING FOR IS SEEING THE PLANS FOR THE SECOND ROUND OF BONDS ALONG WITH THE ITEMIZED LIST OF THE BOND, THE PROJECTS THAT ARE GOING TO BE DONE IF THE BONDS GET ISSUED.
'CAUSE IT'S DEPENDENT UPON COUNCIL TO ISSUE THE BONDS OR, OR AUTHORIZE THE ISSUANCE OF THOSE CHAIR.
JUST TO CLARIFY, UM, ARE YOU ASKING TO MAKE A, THE MOTION OR SECONDARY TO MAKE A FRIENDLY AMENDMENT? OR ARE YOU ASKING, OR ARE YOU TRYING TO MAKE A SUBSTITUTE MOTION WHICH WOULD REPLACE THE MOTION ON THE FLOOR TO APPROVE THE RECOMMENDATION? I GUESS BASED ON YOUR ROBERT'S RULES OF ORDERS? ALL THE MOTION IS ON THE FLOOR RIGHT NOW IS TO MAKE A RECOMMENDATION TO RECEIVE AND FILE THE PRESENTATION.
[01:20:01]
WHAT I'M ASKING FOR IS TO AMEND THAT THIS CURRENT MOTION TO INCLUDE THAT WE WOULD LIKE ADDITIONAL INFORMATION ON ROUND TWO OF BONDS BEING ISSUED AND THE PROJECTS AND THE COST FOR THAT AND THE POTENTIAL ROUND THREE OF BONDS AND PROJECTS TO BE ISSUED FOR THAT.AND THEN, UH, A, UH, A A A SUMMARY OF THE COSTS OF THOSE THREE ROUNDS OF BONDS.
SO IF, IF, IF I CAN ASK FOR A SECOND FOR THAT OR IF NOT, THEN WE, WE CAN STOP.
IT IS JUST PERFOR UH, POINT OF ORDER.
SO HE'S PROPOSED A SUPPLEMENTAL MOTION AND NOW IT'S OPEN TO THE BODY FOR SOMEONE TO SECOND IN THE EVENT THAT THEY WOULD LIKE TO, OKAY, SO THEN IF THERE'S NO SECOND THEN IT DIES, RIGHT? ONE SECOND.
I BELIEVE VICE CHAIR SECONDED.
SO THEN, THEN WE WOULD BE NOW ASKING FOR DISCUSSION ON THIS AMENDED SUPPLEMENT OR DO WE OR NO DISCUSSION ON IT POINT ORDER.
I KNOW WE ALL TOOK THE PARLIAMENTARY TRAINING AND UM, TO, YOU'VE ALREADY HAD THE DISCUSSION, WHICH WAS OUT OF ORDER.
'CAUSE YOU'RE SUPPOSED TO MAKE THE MOTION FIRST AND THEN DISCUSS THE MOTION.
UM, BUT WE CAN AT THIS POINT, IF, IF, UH, VICE CHAIR HOWARD DID SECOND IT, WE COULD DISCUSS THE SUPPLEMENTAL ONLY.
SO THAT'S, THAT'S WHERE WE ARE.
BUT YOU'VE ALREADY SAID I THINK WHAT YOU WANTED TO SAY BEFORE WE EVEN GOT TO THE MOTION, WHICH SHOULD BE OPPOSITE IN THE FUTURE.
UM, ALL RIGHT, SO THEN IF WE CAN HAVE, DOES ANYBODY HAVE ANY DISCUSSION POINTS ON THE SUPPLEMENT ONLY IS WHAT WE'RE TALKING ABOUT, RIGHT? UH, I'LL, I'LL GO BRIEFLY.
UM, I AGREE WITH, UM, MEMBER OCHOA THAT WE DID ALREADY REVIEW IT AND I THINK THERE'S A DIFFERENT TIME AND PLACE FOR US TO GET INTO MORE DETAILS.
I WOULD RECOMMEND, YOU KNOW, IF WE CAN PUT IN WRITING EXACTLY WHAT WE'RE ASKING FOR.
'CAUSE I DON'T RECALL WE AS A COLLECTIVE WE GIVING PRIOR DIRECTION THAT DIDN'T MATCH IT.
UM, BUT I'M NOT IN FAVOR OF, OF A SUPPLEMENTAL SUBSTITUTE MOTION ON THE RECEIVING FILE.
UH, AND IF I CAN JUST SAY THAT THAT AGAIN, I'M JUST TRYING TO UNDERSTAND WHERE MEASURE A IS GOING AND I THINK IT'S VERY CRITICAL RIGHT NOW THAT WE BE MORE TRANSPARENT, ESPECIALLY IF THERE'S GOING TO BE A FUTURE MEASURE ABOUT TRYING TO FUND MORE OF THE CITY GOVERNMENT AND TO TRY TO FUND THE BIG GAP OF INFRASTRUCTURE WHERE WE'RE GONNA BE ALL VOTED VOTING ON A PARCEL TAX.
SO I THINK IT'S IMPORTANT FOR US TO TALK ABOUT, UH, BRING OUT AND HIGHLIGHT THE PROJECTS THAT NEED TO GET DONE AND THAT IF THAT THEY'RE BARELY GETTING DONE WITH THIS MEASURE A AND THAT THERE IS A BIG GAP AND THERE'S A BIG NEED AND THAT THIS, THAT OUR VOTERS UNDERSTAND THAT BECAUSE WHEN WE COME BACK TO VOTE, WE'RE EITHER GONNA SOLVE THE PROBLEM OR NOT.
AND RIGHT NOW THERE'S NOT ENOUGH MONEY IN THE POOL.
SO ALL I'M TRYING TO DO IS WHAT PROJECTS ARE OUT THERE AND HIGHLIGHT THE GAP OF PROJECTS THAT STILL NEED TO GET DONE.
SO THAT'S WHAT WAS MY INTENT WAS TRYING TO UNDERSTAND THESE NEXT BONDS.
AND THE SECOND PART OF THAT IS, IN THE LAST PRESENTATION THAT WE SAW, THE FINANCIAL PROJECTIONS THAT WENT OUT TO 2029, WE SAW A SMALL SMALLER PORTION GOING TO MEASURE A THAT IT IS NOW 70 25 AND 5% GOING ALMOST TOWARDS, UM, THE, THE BONDS.
AND THEN IT'S GONNA EVENTUALLY GO TO OVER 10% OF BONDS THAT THE FUTURE EVEN LOOKS LIKE THIS.
IT'S GONNA BE SMALLER AND SMALLER TOWARDS INFRASTRUCTURE.
SO WE JUST WANNA HIGHLIGHT THE NEED OR I WOULD LIKE TO HIGHLIGHT THE NEED OF OUR INFRASTRUCTURE.
SO THAT'S THE ONLY REASON WHY I WANTED MORE INFORMATION.
CAN I ASK A POINT OF ORDER? WHAT AGENDA ITEM ARE WE ON RIGHT NOW? 3, 2 3 OF TWO SIX.
SO WE HAVE HALF THE MEETING GO.
AND AS A TIME CHECK, WE ARE SCHEDULED TILL FOUR 30, BUT I THINK WE HAVE A LITTLE WIGGLE ROOM TO 4 45, BUT THAT IS A HARD STOP AT 4 45.
AND THERE'S NO MORE DISCUSSION.
SO I GUESS WE JUST NEED TO CALL FOR VOTE.
[01:25:01]
IS THAT RIGHT? DO WE AS WE DON'T HAVE TO HAVE PUBLIC COMMENT, WE DON'T NEED ON SCENE.SO THERE'S NO FURTHER DISCUSSION.
IF WE CAN PLEASE CALL FOR THE VOTE.
AND I GUESS ARE WE GONNA VOTE ON THE WHOLE THING OR JUST THE SUPPLEMENT FIRST AND THEN JUST THE SUB SUBSTITUTE MOTION.
SO THEN WHAT DO WE DO? DO WE JUST NOW VOTE ON THE ORIGINAL, WHICH IS TO AMEND AND OR TO RECEIVE AND FILE? YES, IT DOES GO BACK TO THE, OKAY.
SO THERE'S NO MORE DISCUSSION IF WE WANNA JUST CALL FOR VOTE.
YOU WANNA JUST READ THE NEXT ITEM? ITEM FOUR IS THE RECOMMENDATION TO RECEIVE AND FILE AN UPDATE FROM FINANCIAL MANAGEMENT REGARDING MEASURE A PERFORMANCE IN FY 25 AND TO CONFIRM THAT THE CITY MANAGER'S PROPOSED REVISION TO THE FY 26 MEASURE A SPENDING PLAN CONFORMS WITH THE INTENT OF THE RESOLUTIONS, PRIORITIZING SPENDING, AND WITH THE LANGUAGE CONTAINED IN THE BALLOT MEASURE EXPRESSED IN THE RESOLUTIONS.
ALL RIGHT, MAY I HAVE A MOTION AND SECOND FOR THIS ITEM? IT'S BEEN, I THINK I SAW ONE.
UH, IT'S BEEN MOVED BY, UH, MEMBER INTU AND, UM, OCHOA.
I HAND IT OVER TO STAFF FOR THE PRESENTATION.
UH, MEMBERS OF THE CAC THIS PRESENTATION WILL GIVE YOU AN OVERVIEW OF THE PERFORMANCE MEASURE A AND FY 25, WHICH ENDED IN SEPTEMBER 30TH, 2025.
[4. 26-54655 Recommendation to receive and file an update from the Financial Management Department regarding Measure A Performance in FY 25 and to confirm that the City Manager’s proposed revision to the FY 26 Measure A spending plan conforms with the intent of Resolution Nos. RES-16-0018 and RES-19-0127 prioritizing spending and with the language contained in the ballot measure expressed in Resolution Nos. RES-16-0017 and RES-19-0173. Suggested Action: Approve recommendation. ]
OR SO.SO I'LL TRY TO GO QUICKER AS WE'RE LIMITED ON TIME SO WE HAVE OPEN SPACE FOR DISCUSSION.
ALRIGHT, SO AS A REMINDER, WHEN THE MEASURE A FY 25 PLAN WAS ADOPTED, IT WAS IN, UH, SEPTEMBER, 2024 AND WE PROJECTED ABOUT 68.5 MILLION, UH, REVENUE.
BUT WE REALIZED REVENUE CAME IN SLIGHTLY UNDER ABOUT 65.6 MILLION, BUT THAT IS STILL AN INCREASE FROM THE, UH, MIDYEAR PROJECTION WE PRESENTED TO IN AUGUST, 2025.
SINCE OUR LAST UPDATE, UH, THE MEASURE A FY 25 PLAN INCLUDED ONE ADJUSTMENT TO UTILIZE 570,000 OF THE CRITICAL NEEDS RESERVES THAT WAS PLANNED FOR THE FISCAL YEAR TO HELP FUND THE EXTENSION OF THE LEASE COST OF TEMPORARY SITE STATION NINE SITE.
SO IT COULD ALLOW FOR THE CONSTRUCTION TO COM BE COMPLETED FOR THE PERMANENT SITE.
IN FY 25, THERE WAS A FEW KEY PROGRAMS THAT WERE NOT FULLY SPENT.
SO FOR THE NEIGHBORHOOD SAFETY BIKE TEAM, THERE WAS NOT A FULL STAFF ALLOCATED TO THE PROGRAM.
SO THERE WAS SOME SAVINGS REALIZED IN THE PROGRAM ABOUT FOUR, 400,000 ALONG WITH 600,000 FOR, UH, TO FUND PARK BATHROOM DOOR REPLACEMENTS THAT WERE NOT SPENT IN THE FISCAL YEAR.
BUT THESE WERE RECOMMENDED TO BE RESERVED AND CARRY OVER TO 26 SO THEY CAN COMPLETE THIS PROJECT.
AND LASTLY, THE CRITICAL NEEDS RESERVE WAS NOT FULLY EXPENDED WITH, UH, 1.6 MILLION STILL REMAINING IN THAT RESERVE.
ON THIS SLIDE SHOWS A HIGH LEVEL TABLE OF THE FY 25 SOURCES IN USES, WHICH YOU'LL SEE THAT IT ENDED THE YEAR WITH $2 MILLION BALANCE, WHICH WE'LL GO INTO SOME DETAILS IN THE NEXT FEW SLIDES.
FOR SOURCES, AS MENTIONED, THERE WAS 65.5 MILLION REVENUE GENERATED AND AS FAR AS OTHER SOURCES, WE HAD 1.1 MILLION OF UNSPENT, UH, ONE TIMES FROM THE PRIOR FISCAL YEAR 2024 THAT CARRIED OVER TO 2025.
SO THOSE PROJECTS COULD BE COMPLETE.
SO THAT FUNDING SOURCE WAS THERE 66.65 MILLION TOTAL SOURCES ON THIS SLIDE.
WE HAVE A HIGH LEVEL, UH, CATEGORIES OF HOW MEASURE A WAS SPENT IN FY 25, TOTALING 23.4 MILLION FOR OTHER USES OF MEASURE A, WHICH ARE REALLY JUST RESERVES, WE SET ASIDE 6, 650 6,000 OR 1% OF THE MEASURE A REVENUE THAT WAS GENERATED IN THE YEAR TO PUT INTO THE CITY'S, UH, MEASURE B STABILIZATION FUND, ALONG WITH RESERVING THE 600,000 FOR THE BATHROOM DOORS TO CARRY OVER TO 2026 TO BE SPENT.
THIS IS A HIGH LEVEL SUMMARY, BUT POSTED ONLINE AS AN ATTACHMENT AND ALSO IN THE, UH, PACKAGE.
AFTER THE PRESENTATION, YOU'LL SEE A FULL LISTING OF ALL DETAILED LINE ITEMS OF WHAT WAS BUDGETED AND SPENT.
SO AS MENTIONED EARLIER, THE MEASURE A UH, PLAN ENDED THE YEAR WITH A $2 MILLION BALANCE.
THE CITY COUNCIL APPROVED THE RECOMMENDED USES FOR THESE UH, FUNDS AS PART
[01:30:01]
OF THE FY 25 YEAREND PERFORMANCE REPORT ON THAT FEBRUARY 17TH.AND WE ARE SUBMITTING IT FOR THE CA'S REVIEW.
AND FY 26, THE $2 MILLION WILL HELP FUND, UM, THE FIRE DEPARTMENT'S ENGINEER ACADEMY FOR 550,000 AND WITH THE BALANCE OF 1.4 MILLION CONTINUING IN A CONTINGENCY RESERVE FOR ANY UNFORESEEN NEEDS IN THE FISCAL YEAR.
SO WITH THAT, THAT CONCLUDES MY QUICK OVERVIEW OF FY 20 FIVE'S PERFORMANCE IN THE OPEN FOR ANY QUESTIONS.
ALRIGHT, MEMBERS, ANY QUESTIONS ON THE PRESENTATION? BE NONE.
TAKE PUBLIC COMMENTS, SEE NO PUBLIC COMMENT CHAIR.
UM, THERE'S NO OTHER FURTHER DISCUSSION MEMBERS.
ITEM FIVE IS THE RECOMMENDATION
[5. 26-54656 Recommendation to receive and file a presentation from the Financial Management Department regarding the timeline of the Budget Development Process for the City of Long Beach. Suggested Action: Approve recommendation. ]
TO RECEIVE AND FILE A PRESENTATION FROM FINANCIAL MANAGEMENT REGARDING THE TIMELINE OF THE BUDGET DEVELOPMENT PROCESS FOR THE CITY OF LONG BEACH.AND WE WILL TAKE A VERBAL MOTION ON THIS 'CAUSE THE SYSTEM'S LAGGING A LITTLE BIT.
I WILL ALSO GO OVER THIS SLIDE DECK PRETTY QUICKLY.
THIS IS A REQUEST FROM OUR LAST MEETING TO PROVIDE AN OVERVIEW OF OUR ANNUAL BUDGET PROCESS, UH, VIA A FUND GRAPHIC.
SO THE FIRST HALF OF OUR CALENDAR YEAR FOR OUR FISCAL YEAR, WHICH, UM, AS A FRIENDLY REMINDER BEGINS ON OCTOBER ONE THROUGH SEPTEMBER 30, UH, STARTS AROUND THE, THE DECEMBER FEBRUARY TIMEFRAME.
SO THAT'S WHEN WE BEGIN TO DO OUR FINANCIAL STATUS REVIEW AND DEVELOPMENT OF THE CITY MANAGER'S FINANCIAL AND PROGRAMMATIC DIRECTION BASED ON A COUNCIL PRIORITY SETTING.
AND THAT IS ALSO THE TIMEFRAME WHERE WE DO OUR EARLY COMMUNITY ENGAGEMENT TO GATHER FEEDBACK FOR THE UPCOMING BUDGET.
UH, FOR THIS FISCAL 27 DEVELOPMENT PROCESS, WE DID IT IN THE JANUARY FEBRUARY TIMEFRAME, WHICH LEADS US INTO, UH, MARCH.
WE ALSO DO, UH, IT'S ACTUALLY IN APRIL THIS YEAR, TYPICALLY IN THE MARCH APRIL TIMEFRAME, WE HAVE THE CITY MANAGER PRESENTING TO THE CITY COUNCIL THE CITY'S FINANCIAL STATUS AND PROJECTION FOR THE NEXT FEW YEARS.
AND THAT'S ALSO AN OPPORTUNITY FOR THE CITY MANAGER TO DESCRIBE GOALS AND DIRECTION FOR THE PROPOSED BUDGET.
IN APRIL, DEPARTMENTS DEVELOP THEIR BUDGET ENHANCEMENTS AND REDUCTION REQUESTS FOR THE CITY MANAGER.
IN THE MAY, JUNE TIMEFRAME, THE CITY MANAGER DEVELOPS REVIEWS AND FINALIZES THE PROPOSED BUDGET.
IN JUNE, THE BUDGET OFFICE CONFIRMS AND FINALIZES NUMBERS AND PREPARES THE BUDGET DOCUMENT.
AND THEN, UH, THE GOLD DATE IS A CHARTER MANDATED DATE.
SO THE CITY MANAGER MUST SUBMIT THE PROPOSED OPERATING AND CAPITAL BUDGET NO LATER THAN JULY 3RD TO THE MAYOR.
AND THEN THE MAYOR HAS THE BUDGET, UH, FOR ABOUT A MONTH.
SO HE, UH, LAYERS ON TOP OF THE PROPOSED BUDGET.
CITY MANAGER'S PROPOSED BUDGET, HIS RECOMMENDATIONS, UH, TO THE CITY COUNCIL NO LATER THAN AUGUST 2ND.
SO TYPICALLY WE'LL DO A BIG PRESS RELEASE, PRESS CONFERENCE, WHICH, UH, IS WHEN THE PROPOSED BUDGET IS SHARED PUBLICLY AND TO THE CITY COUNCIL.
AND THEN THAT ACTIVATES OUR AUGUST TIMEFRAME.
SO AUGUST, ALL THE WAY TILL ADOPTION NIGHT.
WE HAVE A SLEW OF OPPORTUNITIES FOR ENGAGEMENT BUDGET HEARINGS, WHICH ARE HELD AT CITY COUNCIL.
AND OUR, UH, CITY MA CITY MANAGER DEPARTMENT PRESENTATIONS, KIND OF GOING OVER A SWOT ANALYSIS OF THEIR PROPOSED BUDGET.
WE HAVE BUDGET OVERSIGHT COMMITTEE MEETINGS ON A WEEKLY BASIS, AND WE ALSO HAVE OUR SECOND ROUND OF COMMUNITY ENGAGEMENT MEETINGS.
AND THEN, UH, SEPTEMBER 15TH, ANOTHER CHARTER MANDATED DATE IS THE DEADLINE FOR THE CITY COUNCIL TO ADOPT THE BUDGET.
AND THE MAYOR HAS THE AUTHORITY TO REDUCE OR ELIMINATE ANY ITEMS. AND THE CITY COUNCIL CAN OVERRIDE THE MAYOR'S ACTION WITH SIX VOTES.
ONCE THE UH, BUDGET IS ADOPTED, UH, THE BUDGET OFFICE TAKES ALL OF THE INFORMATION AND PUTS IT INTO OUR FINANCIAL SYSTEM FOR OUR NEW FISCAL YEAR TO GO INTO EFFECT ON OCTOBER ONE.
SO AFTER THAT, IN NOVEMBER, WE CLOSE OUT THE PREVIOUS FISCAL YEAR, WHICH IS WHY BEFORE I HAD MENTIONED, WE ARE EVALUATING WHERE WE LANDED AT THE END OF THE FISCAL YEAR.
SO NOVEMBER, WE CLOSE OUT AND DETERMINE WHERE THE FINANCIAL STATUS WAS OF THE PREVIOUS FISCAL YEAR, AND THEN IN DECEMBER, WE DO IT ALL OVER AGAIN.
AND THAT CONCLUDES MY PRESENTATION.
HEY, MEMBERS, ARE THERE ANY QUESTIONS ON THIS PRESENTATION? OKAY.
AND I KNOW THE LAST TIME, UH, JUST A REAL THOUGHT, UH, LAST TIME WE TALKED ABOUT THIS WAS, UH, THE LAST TIME WE WANTED TO GET SOME INPUT AND BE PART OF THE PROCESS.
WE, WE REALLY DIDN'T GET THROUGH IT IN TIME.
AND AS A RESULT, UH, WE WERE NOT ABLE TO SUBMIT THE LATER THE LETTER
[01:35:01]
FROM THIS COMMITTEE ON ANYTHING UNTIL WAY AFTER THE FACT.SO I GUESS THAT'S, THIS IS JUST FOR US TO HAVE ON RECORD, UH, SO THAT IF IF THIS COMMITTEE DECIDES TO DO ANYTHING WE NEED, UH, BE WORKING ON IT IN THE NEXT MEETING OR SO, AND THEN GETTING SOMETHING CLOSER TOWARDS JULY, AUGUST VERSUS THE FUTURE.
SO, UM, SO AT LEAST WE HAVE THE INFORMATION.
HEY, AND ONE MORE, THIS IS JUST FOR THE ANNUAL BUDGET.
IS THERE EVER, I THOUGHT THERE WAS A, A PRESENTATION FOR LIKE A, A FIVE YEAR CAPITAL BUDGET THAT GETS UPDATED ON A REGULAR BASIS.
UH, JONATHAN COVERED THAT A LITTLE BIT IN HIS, UH, PREVIOUS PRESENTATION ABOUT THE TIMELINE FOR US UPDATING OUR NEXT FIVE YEAR CIP PLAN.
BUT YES, THIS IS OUR ANNUAL BUDGET PROCESS.
SO, AND THAT, THAT, THAT THE NEXT ONE IS WHAT, TWO MORE YEARS FROM NOW? 'CAUSE THIS IS FOR 28.
THE THE ONE WE'RE UNDER RIGHT NOW IS UP TO 2028.
AND SO THEN THERE'S GONNA BE A 28 THROUGH YEAH.
SO THAT'S ANOTHER YEAR TO TWO YEARS FROM NOW.
BUT I BELIEVE CURRENT EFFORTS ARE UNDERWAY TO BEGIN THAT PLANNING PROCESS.
SO DEFINITELY IN THE WORKS NOW.
ANY OTHER QUESTIONS? OKAY, ANY PUBLIC COMMENTS? SEEING NONE, CHAIR.
BEING NONE, UH, LET'S PLEASE CALL FOR VOTE.
SO IF WE WANNA READ THE LA LAST ITEM.
[6. 26-54657 Recommendation to receive and file a report from current Ad Hoc Committee; discuss anticipated Ad Hoc Committees for upcoming projects; and, if appropriate, take action to dissolve or create Ad Hoc Committees. Suggested Action: Approve recommendation. ]
TO RECEIVE AND FILE A REPORT FROM CURRENT AD HOC COMMITTEES.DISCUSSED ANTICIPATED AD HOC COMMITTEES FOR UPCOMING PROJECTS, AND IF APPROPRIATE, TAKE ACTION TO DISSOLVE ANDREE AD HOC COMMITTEES.
ALL RIGHT, IF I CAN HAVE A MOTION AND A SECOND.
IT'S BEEN MOVED BY OCHOA AND SECONDED BY INTU.
UM, CAN WE HAVE AN AD HOC PROVIDE A REPORT FROM ONE OF Y'ALL TWO JAN INTU.
UH, JAN AND I DID HAVE A CHANCE TO MEET AND DISCUSS, UM, MAINTAINING THE AD HOC COMMITTEE FOR THE NEXT YEAR AND DISSOLVING THE PREVIOUS ONE.
AND WE TALKED ABOUT A NUMBER, YOU KNOW, SHE GAVE ME SOME HISTORICAL BACKGROUND.
UM, I READ THROUGH THE THREE LETTERS THE LAST THREE YEARS, UH, AND WE, WE WENT THROUGH, UM, A NUMBER OF THINGS WE COULD PUT IN A FUTURE RECOMMENDATION, UH, OF A NEW AD HOC COMMITTEE THAT WOULD GO TO THE FULL, UM, COMMITTEE FOR CONSIDERATION.
UH, ONE, WE TALKED ABOUT INCREASING COMMUNITY ENGAGEMENT, UH, AROUND MEASURE A SPENDING, UH, SUCH AS HOSTING LIKE A TOWN HALL OR SOME TYPE OF EVEN VIRTUAL EVENT.
UH, WE TALKED ABOUT, UH, ANNUAL AUDIT PRESENTATION TO THE COMMITTEE.
UM, DID LOOK AND SEE THAT THE CITY AUDITOR HAS DONE MEASURE A AUDITS IN THE PAST, BUT THAT MIGHT BE A FEATURE AGENDA ITEM, UH, TO HAVE THEM COME EVERY YEAR TO TALK ABOUT WHAT THE CITY AUDITOR FOUND, UH, OR, OR RECOMMENDATIONS THEY MAY HAVE.
UH, WE DID TALK ABOUT AN INVENTORY, UH, THE CITY OWNED BUILDINGS.
WE HAD SOMEWHAT OF A PRESENTATION ON THAT TODAY.
UM, NOT IN, I MEAN, NOT IN THE, THE LEVEL OF DEPTH, UH, THAT WE'D LIKE TO, BUT YOU KNOW, WAS A, YOU KNOW, WE TALK A LOT ABOUT ROADS AND WE SEE ABOUT BUILDING SPENDING, BUT HOW, YOU KNOW, IS THIS METRIC, UH, THAT JONATHAN PRESENTED EARLIER IS THAT THE, THE BEST ARE THE ONLY, UH, BUILDING ASSESSMENT METRIC.
AND HOW IS THAT USED IN CONSIDERATION TO MEASURE A FUNDING? UM, WE TALKED ABOUT, UH, CONTINUING TO PUT OUT, UH, ACCURATE AND POSITIVE INFORMATION SUCH AS, UH, YOU KNOW, HOW OFTEN DOES OUR WEBSITE GET UPDATED OR MEASURE OTHER, MEASURE A WEBSITE, GET UPDATED IF THERE'S A FACT SHEET OR FAQ THAT'S BEEN PUT TOGETHER OR ANNUALLY COULD BE PUT TOGETHER.
THERE'S A LOT OF MISINFORMATION ONLINE, A LOT OF CRITICISM FROM SOME VERY VOCAL MEMBERS OF THE COMMUNITY IS INACCURATE.
THAT, UH, BEING ABLE TO PROVIDE AN UPDATED ACCURATE INFORMATION WOULD HELP, UH, US AND WHEN PEOPLE COME TO US ASK QUESTIONS.
AND ALSO WHEN WE SEE THINGS OUT IN THE PUBLIC THAT MAY OR MAY NOT BE TRUE.
UM, WE TALKED ABOUT, UM, YOU KNOW, UPCOMING BUDGET YEARS OR COULD BE DIFFICULT.
IS THERE, IS THERE NOT A RECESSION ON THE HORIZON? UH, YOU KNOW, THE, THE WAR HAPPENED HERE IN THE LAST FOUR WEEKS THAT DIDN'T EXIST.
OUR LAST COMMITTEE MEETING IS NOW, UH, RAISING, YOU KNOW, GAS PRICES AND SUPPLY CHAIN COSTS, UH, AROUND THE WORLD.
AND THEN WE ALSO DID, UM, TALK ABOUT SOME OF THE NEW, UH, MEASURES, UM, THAT ARE COMING UP LIKE THE, THE LA COUNTY MEASURE A MONEY, UH, THAT KEVIN MENTIONED EARLIER.
THAT'S AT QUARTER CENT INCREASE IN I THINK FISCAL YEAR 27.
[01:40:01]
THAT'S HAPPENING VERSUS THE CURRENT, UH, PROPOSED MEASURE HAS NOT QUALIFIED FOR SIGNATURES, HAS NOT BEEN VOTED ON.AND REALLY RIGHT NOW IS A HYPOTHETICAL THAT WE SHOULDN'T CONSIDER UNTIL SOME FUTURE TIME IF IT, IF IT DOES, IF AND WHEN IT DOES BECOME A REALITY.
SO WE TALKED ABOUT WHAT'S, WHAT'S REAL, WHAT'S NOT, WHAT'S ON THE HORIZON, WHAT DO WE KNOW VERSUS WHAT WE DON'T KNOW.
SO THOSE WERE SOME OF THE, THE TOPICS, UM, WE RECOMMEND OR WE DISCUSSED AND RECOMMEND JOINT RECOMMENDATIONS.
I DON'T KNOW, JANET, IF YOU HAVE ANYTHING ELSE YOU WANNA ADD OR, OR ANYTHING I MISSED FROM OUR CONVERSATIONS? WELL, UM, YOU KNOW, ANY, ANY OF THO THOSE WERE THE KIND OF THE RECOMMENDATIONS THAT COULD POTENTIALLY BE INCLUDED IN A, IN A LETTER FROM THIS COMMITTEE AND, UM, AND JUST, UM, WITH, UM, UM, MEMBER AND TOOK AND MYSELF, WE CERTAINLY WOULD BE WILLING TO HELP WITH, WITH, YOU KNOW, MAYBE ATTENDING MEETINGS AND, AND BEING PROACTIVE AND HELPING, UM, CORRECT SOME OF THE PUBLIC MISINFORMATION OUT THERE.
AND OF COURSE WE CAN'T SPEAK FOR THE OTHER TWO COMMITTEE MEMBERS, BUT THEY MAY ALSO BE BECAUSE I THINK THERE'S A LOT OF MISINFORMATION THAT, AND UM, AND PEOPLE JUST DON'T, THEY JUST DON'T KNOW AND THEY JUST DON'T UNDERSTAND.
AND, AND, UH, I MEAN I THINK THE PUBLIC WORKS IS DOING A GREAT JOB AND, AND, UM, ALL OF THE FINANCIAL MANAGEMENT, BUT IT'S, IT PEOPLE DON'T, THEY DON'T UNDERSTAND THE SHORTFALL AND WHY THERE'S, AND THAT THERE'S MORE, MORE WORK THAT CAN POSSIBLY DONE BE DONE UNDER, AS KEVIN POINTED OUT, ALMOST ANY SCENARIO.
UM, AND IT'S, I THINK IT'S IMPORTANT FOR THE PUBLIC TO UNDERSTAND THAT.
SO I, I, UM, I SEE THAT AS, AS MAYBE A WAY THAT THIS COMMITTEE COULD BE OF SERVICE.
THE MAYOR DID CHARGE US TO, TO BE OF SERVICE AND I THINK WE COULD, WE COULD POTENTIALLY MAYBE DO SOME OF THAT.
SO DID YOU TWO COME BACK OUT WITH ANY KIND OF RECOMMENDATION OF WHAT ITEM Y'ALL THINK THAT WE COULD BE DOING? I MEAN, YOU'RE, YOU'RE YOU'RE TALKING ABOUT HOW DO WE HELP THE PUBLIC PERCEPTION UNDERSTAND AND SEE THE CHALLENGES THAT WE ALREADY SEE? WE, WE, WE KNOW THAT THERE'S FUNDING ISSUES.
WE KNOW THAT MORE AND MORE MEASURE A HAS TO GO TO SAFETY, WHICH IT CAN LEGALLY GO BECAUSE OF, OF WHERE THE BUDGET'S AT.
AND THEN LESS AND LESS IT'S GOING TO THE INFRASTRUCTURE.
WE KNOW THERE'S POTENTIALS GONNA HAPPEN.
AND I THINK Y'ALL MENTIONED MAYBE POSSIBLY DOING LIKE A TOWN HALL AND WHETHER THAT WOULD ATTRACT ANYBODY EVEN, I DON'T KNOW WHETHER A TOWN HALL TO JUST PRESENT, HERE'S WHAT WE PROMISED IN 2017 WITH MEASURE A, HERE'S WHAT'S BEEN ABLE TO BE SUCCESSFULLY ACCOMPLISHED.
LET THEM SEE ALL THE GOOD LOOKING PICTURES AND SAY, AND THEN HERE'S THE BIG GAP OF WHAT'S STILL REMAINING.
AND THE GAP IS GROWING BECAUSE PRIMARILY BECAUSE OF DETERIORATION AND RISING CONSTRUCTION COSTS AND, AND THERE'S NOT ENOUGH MONEY.
AND IF, IF, IF THAT IS EVEN SOMETHING, BECAUSE IN THE END THIS COMMITTEE IS SUPPOSED TO BE QUOTE UNQUOTE IN MY MIND, A PERSPECTIVE OF LOOKING AT IS MEASURE A ACCOMPLISHING WHAT IT WAS SET OUT TO DO? IS IT BEING SPENT WHERE IT'S SUPPOSED TO BE SPENT? AND RIGHT NOW ALL WE HAVE BEEN DOING IS SAYING YES, IT'S BEING SPENT ON SAFETY AND PUBLIC WORKS, BUT NOT IF WE'RE SEEING SUCCESS OR NOT.
AND AGAIN, IS THAT SOMETHING THAT WE WANNA CONSIDER OR IS THAT SOMETHING IT'S TOO LATE IN THE GAME? IN THE INTEREST OF TIME? 'CAUSE IF WE HAVE T MINUS 60 SECONDS, I WOULD RECOMMEND THAT WE PUT UH, A FUTURE AGENDA ITEM ON OUR NEXT MEETING TO DRAFT OR FINALIZE, GET, GET CONCEPTS OF WHAT DO WE WANT TO HAVE IN OUR RECOMMENDATION LETTER FOR THE, FOR THE YEAR.
UM, WE DID NOT GET INTO THE LEVEL OF FUTURE SPENDING OR PERFORMANCE.
I I DON'T THINK THE INFRASTRUCTURE GAP IS IN THE PURVIEW OF THIS, UH, COMMITTEE.
WE'RE SUPPOSED TO BE LOOKING AT HOW IT MEASURE A MONEY IS SPENT, NOT WHAT'S GONNA HAPPEN TO THE OVERALL INFRASTRUCTURE GAP OF THE ENTIRE CITY.
SO, UH, BUT JUST 'CAUSE WE DON'T HAVE ANY MORE TIME.
WE SHOULD HAVE A FUTURE AGENDA ITEM WHICH WE CAN DETERMINE WITH STAFF WHAT A TITLE TO TALK ABOUT THIS MORE.
SO IF WE CAN JUST LEAVE THE SAME ITEM ON AND THEN Y'ALL WANT TO HAVE ANOTHER DISCUSSION AND SEE IF THERE IS GONNA BE A RECOMMENDATION AND COME BACK WITH A RECOMMENDATION OR SAY NO AD HOC COMMITTEE IS DEVOID.
I THINK, I THINK WE BOTH AGREED THAT CONTINUING THE AD HOC COMMITTEE OR ESTABLISH A NEW ONE WOULD BE APPROPRIATE OR WE SUPPORT SUPPORTIVE AND OKAY.
I THINK THAT'S A RECOMMENDATION.
MAYBE WE CAN MAKE THAT THE AGENDA ITEM NEXT MONTH.
BUT I DUNNO WHAT STAFF, UH, YES, WE CAN ADD IT TO THE AGENDA.
SO DO WE HAVE TO TAKE ANY NO, NO, NO.
ANYBODY ELSE? NO OTHER FURTHER DISCUSSION? LET'S CALL FOR A
[01:45:01]
VOTE.AND THEN AT THIS TIME WE TAKE ANY NON-PUBLIC AGENDA ITEMS. THERE'S NO ONE.
IF THERE'S NO OBJECTION, LET'S WE DECLARE THE MEETING ADJOURNED.