Loading...
CC MINS 20250603 (SPC IA) MINUTES REGULAR MEETING OF THE RANCHO PALOS VERDES CITY COUNCIL AND IMPROVEMENT AUTHORITY JUNE 3, 2025 CALL TO ORDER: A Regular Meeting of the Rancho Palos Verdes City Council for the purpose of a Closed Session was called to order by Mayor Bradley at 6:01 P.M. at Fred Hesse Jr. Community Park, McTaggart Hall, 29301 Hawthorne Boulevard. This meeting took place both in person and remotely. Remote participation by any Councilmember was in accordance with Government Code Section 54953. Members of the public could observe and participate using the Zoom participation feature and with options called out in the public participation form provided under a separate cover with the agenda. Notice having been given with affidavit thereto on file. City Council roll call was answered as follows: PRESENT: Lewis, Perestam, Seo, and Mayor Bradley ABSENT: Ferraro* (Excused in Fireside Room) Also present were Ara Mihranian, City Manager; William Wynder, City Attorney.,Pam Lee, Labor Counsel; Ed Richards, Special Counsel; Catherine Jun, Deputy City Manager; Vina Ramos, Director of Finance; Brandy Forbes, Director of Community Development; Daniel Trautner, Director of Recreation and Parks; Vanessa Godinez, HR and Risk Manager, Nathan Zweizig, Acting Deputy City Clerk (via zoom); and Teresa Takaoka, City Clerk. PUBLIC COMMENTS FOR CLOSED SESSION: None CLOSED SESSION ITEM(S) ANNOUNCED: 1. CONFERENCE WITH LEGAL COUNSEL — EXISTING LITIGATIONS A closed session will be held, pursuant to Government Code § 54956.9(d)(1), to confer with legal counsel regarding pending litigations to which the City is a party. The title of such litigations are as follows: Andersen, et al. v. California Water Service Co., et al., LASC Case No. 24STCV20953; Roth, et al. v. California Water Service Co., et al., LASC Case No. 25STCV00543; Chip Assets, et al. v. California Water Service Co., et al., LASC Case No. 25STCV04790; Buesing, et al. v. California Water Service Co., et al., LASC Case No. 25STCV10840 2. CONFERENCE WITH LABOR NEGOTIATOR GOVERNMENT CODE SECTION 54957.6 A closed session will be held, pursuant to Government Code § 54957.6, with the City Manager, Deputy City Manager, Finance Director, HR Manager, and City Attorney, acting as its negotiators, regarding labor negotiations with the American Federation of State, County, and Municipal Employees District Council 36 (AFSCME DC36). 3. CONFERENCE WITH LEGAL COUNSEL —ANTICIPATED LITIGATION A closed session will be held pursuant to Government Code § 54956.9(e) because the City is considering whether to initiate litigation in one case. 4. CONFERENCE WITH LEGAL COUNSEL —ANTICIPATED LITIGATION A closed session will be held, pursuant to Government Code § 54956.9(d)(2) or (d)(3) and (e)(1) because there is a significant exposure to litigation in one case where the facts and circumstances giving rise to an exposure to litigation are not known to plaintiff(s). City Attorney Wynder requested to continue Closed Session Item No. 4 to the June 17, 2025, meeting. Without objection, Mayor Bradley so ordered. At 6:02 P.M. the Council recessed to Closed Session. *Councilmember Ferraro joined the Closed Session meeting in the Fireside Room at 6:02 P.M. RECONVENE TO REGULAR MEETING: At 7:06 P.M. the Closed Session was reconvened to the Regular meeting. REGULAR MEETING — OPEN SESSION CALL TO ORDER: A Regular meeting of the Rancho Palos Verdes City Council and Improvement Authority was called to order by Mayor Bradley at 7:03 P.M. at Fred Hesse Jr. Community Park, McTaggart Hall, 29301 Hawthorne Boulevard, notice having been given with affidavit thereto on file. ROLL CALL: City Council roll call was answered as follows. PRESENT: Ferraro, Lewis, Perestam, Seo and Mayor Bradley ABSENT: None Also present were Ara Mihranian, City Manager; Catherine Jun, Deputy City Manager; William Wynder, City Attorney; Vina Ramos, Director of Finance; Ramzi Awwad, Director City Council Regular Minutes June 3, 2025 Page 2 of 13 of Public Works; Brandy Forbes, Director of Community Development; Daniel Trautner, Director of Recreation and Parks; Robert Moya, Deputy Director of Finance; Octavio Silva, Deputy Director of Community Development (via zoom); Jessica Bobbett, Senior Planner; Vanessa Godinez, HR and Risk Manager; Eileen Jacinto, Human Resources Analyst; Jennifer Schmid, Public Safety Manager; Gregory Miller, Public Safety Field Training Officer; James O'Neill, Senior Administrative Analyst; Matt Waters, Senior Administrative Analyst (via zoom); Lukasz Buchwald, IT Manager; Nathan Zweizig, Acting Deputy City Clerk (via zoom); and Teresa Takaoka, City Clerk. PLEDGE OF ALLEGIANCE: The Pledge of Allegiance was led by Eagle Scout Adam Ashcroft. CLOSED SESSION REPORT: City Attorney Wynder provided the closed session report and reported on the three items that were discussed in closed session. City Attorney Wynder reported that for Item 1 regarding four cases of existing litigation to which the City is a party (Andersen, et al. v. California Water Service Co., et al., LASC Case No. 24STCV20953; Roth, et al. v. California Water Service Co., et al., LASC Case No. 25STCV00543; Chip Assets, et al. v. California Water Service Co., et al., LASC Case No. 25STCV04790; Buesing, et al. v. California Water Service Co., et al., LASC Case No. 25STCV10840), the authority to discuss litigation strategy was Government Code § 54956.9(d)(1). There was a privileged and confidential briefing by the litigation counsel obtained by CJPIA with the City Council. Questions were asked and answered and unanimously authorized its litigation counsel to enter into what is known as a Common Interest Agreement among the defendants in that action. As to Item 2 regarding ongoing labor negotiations with the American Federation of State, County, and Municipal Employees District Council 36 (AFSCME DC36), the authority to meet in closed session was Government Code § 54957.6. City Council received a counter proposal from (AFSCME DC36) in ongoing labor negotiations. The counter proposals were reviewed with City Council and additional negotiating authority was given to the City's negotiators. City Attorney Wynder reported regarding Item 3, the City Council met in closed session pursuant to Government Code § 54956.9(e), because the City is considering whether to initiate litigation in one case. After a privileged and confidential briefing by the City Attorney, the City Council unanimously authorized the City Attorney's office to commence a Code Enforcement action involving the property at 28627 Mount Palomar Place. Lastly, regarding Item 4, the item was continued to the next City Council meeting. MAYOR'S ANNOUNCEMENTS Mayor Bradley and the entire City Council mourned the passing of and honors the legacy of Marthe Cohn, a Holocaust survivor who became a member of the Intelligence Service for City Council Regular Minutes June 3, 2025 Page 3 of 13 the French Army during VVWII. Mrs. Cohn died Tuesday, May 20th, at her Seaview home at the age of 105. Mayor Bradley and the entire City Council recognized Pedro Pet Pals and Lara Shea for their outstanding dedication and contribution to improving the lives of homeless pets by providing shelter, care, and love to countless animals in need. Mayor Bradley and City Council presented Pedro Pet Pals with a Certificate of Recognition recognizing their service. Mayor Bradley and the entire City Council joined in recognizing the following Scouts for their hard work in completing their Eagle Scout projects: Matthew Chao (Scout Troop 378); Sienna Stanley (Scout Troop 219); Adam Ashcroft (Scout Troop 128); and James Dunkeld Kennedy (Scout Troop 128). RECYCLE AND EMERGENCY PERSONAL PREPAREDNESS KIT DRAWING: Mayor Bradley, by order of affirmation, approved the Recycle Winners for May 20, 2025, as Bette Gregorio and James Ueda. The winners will each receive a check for $250 as well as a personal emergency preparedness kit from the City valued at $40. APPROVAL OF THE AGENDA: Councilmember Ferraro moved, seconded by Mayor Pro Tem Seo, to approve the agenda as presented. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None PUBLIC COMMENTS FOR NON-AGENDA ITEMS: City Clerk Takaoka reported that there were three requests to speak. The following members of the public addressed the City Council: Evan Coares; Merlin David; and Eva Albuja. CITY MANAGER REPORT: City Manager Mihranian provided updates on the following: 1. State Assembly passes AB 986 70-0. 2. Introduced new Field Training Officer Greg Miller. 3. FEMA Hazard Mitigation Grant Program submittal of Notice of Interests related to Round No. 2 Voluntary Buyout Program and Portuguese Bend Landslide Remediation Project. 4. Congratulations to this year's Class of 2025 graduates! 5. Heal the Bay released their Beach Report Cards with Abalone Cove Beach and III Long Point at Terranea receiving A+ scores. City Council Regular Minutes June 3, 2025 Page 4 of 13 6. The ongoing Youth Advisory Committee Recruitment (deadline to apply June 30th) 7. Movies in the Park at the Ken Dyda Civic Center starts June 14 with Moana 2; Top 111 Gun on July 12; and The Wild Robot on August 9. 8. 4th of July Celebrations and Drone Show is scheduled for Friday, July, 4, 2025, from 3:00 P.M. to 9:00 P.M. at the Ken Dyda Civic Center. 9. June is LGBTQIA+ Pride Month. 10.Flag Day is Saturday, June 14 11.Happy Father's Day to all dads. 12.Happy Birthday to Councilmember Lewis. ADDITIONAL PUBLIC COMMENTS FOR NON-AGENDA ITEMS: Mayor Bradley reported that there was one additional request to speak. The following members of the public addressed the City Council: Dana Ireland. CONSENT CALENDAR: City Clerk Takaoka noted that there were no requests to speak. Councilmember Ferraro moved, seconded by Mayor Pro Tem Seo, to approve the Consent Calendar. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None A. Approval of Minutes (Zweizig) Approved the Minutes of May 20, 2025 (Regular Meeting) B. Registers of Demands (Anguiano) Adopted Resolution No. 2025-31, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, ALLOWING CERTAIN CLAIMS AND DEMANDS AND SPECIFYING FUNDS FROM WHICH THE SAME ARE TO BE PAID. C. Consideration and possible action to receive the April 2025 Cash Balances/Monthly Treasurer's Report. (Lin) Received and filed the April 2025 Cash Balances/Monthly Treasurer's Report for the City and the Improvement Authority. D. Consideration to appoint Chairpersons to the Planning Commission and various City advisory boards. (Zweizig) City Council Regular Minutes June 3, 2025 Page 5 of 13 Appointed a Chair to the Planning Commission and five City advisory boards: Civic Center Advisory Committee, Emergency Preparedness Committee, Finance Advisory Committee, Infrastructure Management Advisory Committee, and Traffic Safety Committee. E. Consideration to amend Chapter 5.28 (Vending on Public Property) of the Rancho Palos Verdes Municipal Code for consistency with the Safe Sidewalk Vending Act ("SB 946"). (Zoren/Silva) Adopted Ordinance No. 690, "AN ORDINANCE OF THE CITY OF RANCHO PALOS VERDES AMENDING SECTIONS 5.28.010 (PURPOSE), 5.28.030 (DEFINITIONS), 5.28.070 (VENDOR OPERATIONAL REQUIREMENTS), AND 5.28.080 (VIOLATIONS) OF CHAPTER 5.28 (VENDING ON PUBLIC PROPERTY), OF TITLE 5 (BUSINESS TAXES, LICENSES AND REGULATIONS) OF THE RANCHO PALOS VERDES MUNICIPAL CODE TO UPDATE SIDEWALK VENDING REQUIREMENTS FOR CONSISTENCY WITH SENATE BILL NO. 946". F. Consideration to approve Amendment No. 3 to the Contract Services Agreement for City Attorney Legal Services with Aleshire & Wynder, LLP. (Jun) 1) Approved Amendment No. 3 to the Contract Services Agreement for City Attorney Legal Services with Aleshire & Wynder, LLP, amending the hourly rates for legal services effective July 1, 2025, with annual adjustments based on the CPI-U for the Los Angeles-Long Beach-Anaheim by the annual CPI-U or four percent (4%), whichever is less, for the preceding twelve month period measured March to March; and, 2) Authorized the Mayor and City Clerk to execute the amendment in a form approved by the City Attorney. G. Consideration to continue the emergency justification for work and emergency contracting for the Greater Portuguese Bend-Ancient Altamira Landslide Emergency Project. (Copp) 1) Reconfirmed, by a four-fifths vote, there is a need to continue the work on the Vertical Deep Dewatering Emergency Project declared by Council-adopted Resolution No. 2024-20 on May 7, 2024, finding an emergency exists requiring immediate action in the Greater Portuguese Bend-Ancient Altamira Landslide Complex to seek to mitigate the movement of the landslide; and 2) Directed the City Clerk to confirm the same in the minutes of this City Council meeting, via Minute Order, reflecting this action. H. Consideration to approve Amendment No. 6 to the Employment Agreement with City Manager Ara Mihranian effective July 1, 2025. (Godinez) Adopted Resolution No. 2025-32, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, APPROVING AMENDMENT NO. 6 TO CITY MANAGER EMPLOYMENT AGREEMENT BETWEEN CITY OF RANCHO PALOS VERDES AND ARA MICHAEL MIHRANIAN, AICP, THEREBY APPLYING AN ANNUAL COST OF LIVING ADJUSTMENT, NOT TO EXCEED 3% OF HIS ANNUAL SALARY, BASED ON THE CONSUMER PRICE INDEX EFFECTIVE JULY 1, 2025. City Council Regular Minutes June 3, 2025 Page 6 of 13 I. Consideration to authorize purchasing Information Technology cloud backup and disaster recovery services. (Buchwald) Authorized the City Manager to issue a purchase order for Information Technology cloud backup and disaster recovery services for $35,100 for Fiscal Year (FY) 2024-25, and $33,600 each in FY 2025-26 and FY 2026-27. J. Consideration to amend compensation and benefits for the City's Unrepresented Employees and to update the Salary Schedule for Rancho Palos Verdes Employee Association, Unrepresented Employees, and City Manager effective July 1, 2025. (Godinez) 1) Adopted Resolution No. 2025-33, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, ACCEPTING, APPROVING, AND ADOPTING AMENDED COMPENSATION AND BENEFITS FOR THE UNREPRESENTED EMPLOYEES (MANAGEMENT AND CONFIDENTIAL) FOR THE PERIOD OF JULY 1, 2025 THROUGH JUNE 30, 2028; and, 2) Adopted Resolution No. 2025-34, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, AMENDING, RESTATING, AND SUPERSEDING RESOLUTION NO. 2025-03 THAT SETS THE SALARY SCHEDULE FOR THE RANCHO PALOS VERDES EMPLOYEES ASSOCIATION, UNREPRESENTED EMPLOYEES, AND THE CITY MANAGER, TO REFLECT A THREE PERCENT COST OF LIVING ADJUSTMENT EFFECTIVE JULY 1, 2025. CONSENT CALENDAR ITEM(S) PULLED FOR PUBLIC COMMENT: None PUBLIC HEARINGS: 1. Consideration to revise the City Council-adopted Housing Element to remove Site Nos. 16, 18, and 19 from the Housing Sites Inventory. (Forbes) City Clerk Takaoka reported that the notice of the public hearing was duly published, late correspondence was distributed and there were 11 requests to speak. Mayor Bradley declared the public hearing open. Director of Community Development Forbes presented a detailed staff report and PowerPoint presentation and introduced Octavio Silva, Deputy Director of Community Development and Jessica Bobbett, Senior Planner, who were available for questions. Council Members asked questions of Staff. The following members of the public°addressed the City Council: Dana Ireland; Steve Hsu; Shahzad Khaligh; Kathy Millea; Brian Wright-Bushman; Dan Bruening; Michele Carbone; Stasys Petravicius; and Sharon Yarber. City Council Regular Minutes June 3, 2025 Page 7 of 13 Mayor Bradley closed the public hearing. Discussion ensued among Council Members, and questions were asked of Staff and City Attorney. Councilmember Lewis moved, seconded by Councilmember Perestam, staff recommendations as follows:: 1) Reviewed the California Department of Housing and Community Development's (HCD) formal review letter of the proposed draft revisions to the City Council-adopted 2021-2029 Housing Element to remove Site Nos. 16, 18, and 19 from the Housing Sites Inventory; 2) Reviewed the potential zoning build-out scenarios for Site Nos. 16, 18, and 19 if: a) Restoring the sites' original designation; or b). Retaining the current Housing Element's designation, 3) Based on HCD's letter and the zoning build-out scenarios directed Staff to retain the existing Housing Element zoning for all three sites adopted by the City Council on April 16, 2024 by Resolution No. 2024-16; and, 4) City Council directed Staff to notify Coastal Commission to proceed with processing the LCP Amendment so Site No. 16. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None Mayor Bradley called for a brief recess at 9:36 P.M. Without objection, it was so ordered. The meeting was reconvened at 9:51 P.M. 2. Consider adopting an updated Master Schedule of Fees for City services for Fiscal Year 2025-26. (O'Neill) City Clerk Takaoka reported that the notice of the public hearing was duly published, and there were no requests to speak. Mayor Bradley declared the public hearing open. Finance Director Ramos presented a comprehensive staff report and PowerPoint presentation along with Finance Deputy Director Robert Moya and Senior Administrative Analyst James O'Neill. Mayor Bradley closed the public hearing. Discussion ensued among Council Members. Councilmember Lewis moved, seconded by Councilmember Ferraro, to approve staff recommendations as follows: 1) Reviewed the updated Fiscal Year (FY) 2025-26 Master Schedule of Fees for City Services and affirmed the following: a) Applying the 3.0% increase from the March 2025 Consumer Price Index for All Urban Consumers (CPl-U); b) Applying the 3.0% increase from March 2025 CPI-U to the Fully Burdened Hourly Rates primarily charged for reimbursed services and elective services; 2) City Council Regular Minutes June 3, 2025 Page 8 of 13 Adopted Resolution No. 2025-35, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES AMENDING RESOLUTION NO. 2024-19 THEREBY DETERMINING.TO INCREASE FEES FOR CITY SERVICES IN FY 2025- 26 BASED ON THE MARCH 2025 CPI-U, UPDATING FEES FOR THE COUNCIL- ADOPTED MASTER SCHEDULE OF FEES, AND ESTABLISHING UPDATED FULLY BURDENED HOURLY RATES FOR CITY SERVICES FOR FISCAL YEAR 2025-26. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None REGULAR BUSINESS: 3. Consideration to adopt a Memorandum of Understanding with the Rancho Palos Verdes Employees Association for the period of July 1, 2025 through June 30, 2028. (Godinez) City Clerk Takaoka reported that there were no requests to speak. Mayor Bradley moved to waive the staff report, without objection this was so ordered. Councilmember Perestam moved, seconded by Councilmember Ferraro, to approve staff recommendation as follows: 1) Adopted Resolution No. 2025-36, A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF RANCHO PALOS VERDES, CALIFORNIA, ACCEPTING, APPROVING, AND ADOPTING THE MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY OF RANCHO PALOS VERDES AND THE RANCHO PALOS VERDES EMPLOYEES ASSOCIATION FOR THE PERIOD OF JULY 1, 2025 THROUGH JUNE 30, 2028; and, 2) Waived Municipal Code Section 2.48.040(A) requiring the fiscal impact analysis of a proposed Memorandum of Understanding to be reviewed by an independent Certified Public Accountant and waive Municipal Code Section 2.48.050(A) requiring that the City Council take action on a proposed Memorandum of Understanding only after it has been placed on a City Council agenda at a minimum of two City Council meetings that are held at least two weeks apart, in order to adopt Resolution No. 2025-36 during the June 3, 2025 City Council meeting. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None 4. Consideration to review the Fiscal Year (FY) 2024-25 year-end estimates and the FY 2025-26 Preliminary Citywide Budget. (Moya/O'NeiII/Copp) City Clerk Takaoka reported that there were no requests to speak. Finance Director Ramos presented a comprehensive staff report and PowerPoint City Council Regular Minutes June 3, 2025 Page 9 of 13 presentation on the budget process, FY 2024-25 year-end estimates, and FY 2025-26 preliminary budget. City Council asked questions of Staff. Mayor Bradley moved to extend the meeting to 11:00 P.M. Without objection, it was so ordered. Public Works Director Awwad presented a detailed staff report and PowerPoint presentation on the FY2025-26 five-year Capital Improvement Program. City Council asked questions of Staff. Finance Director Ramos presented a comprehensive staff report and PowerPoint presentation on the FY 2025-26 other funds. Discussion ensued among Council Members. Councilmember Lewis moved, seconded by Councilmember Perestam, to approve staff recommendations No.s 1-5 and to include added recommendation No. 6: 1) Reviewed the FY 2024-25 year-end estimates and approve Budget Adjustments in the General Fund by reducing the budget in the amount of$530,000 in Non- Personnel and increasing Transfers-Out by $100,000 based on year-end estimates; 2) Reviewed the Preliminary FY 2025-26 Budget for the General Fund and affirm the changes since the April 17 Budget Workshop: a. Increased the General Fund Revenues by $130,000 (0.04%) b. Increased Transfers-In from the Public Safety Fund by $70,000 (28%) c. Decreased the General Fund Personnel Expenditure by $32,400 (-0.2%) d. Increased the General Fund Non-Personnel Expenditure by $401,900 (1.9%) based on the information received in May 2025 for the Los Angeles Sheriff Department Contract, City Attorney Contract, and required deductible insurance from the California Joint Power Insurance Authority e. Adjusted General Fund Transfers-Out: i. Increased Habitat Restoration Fund by $70,000 ii. Decreased Subregion One Maintenance Fund by $20,000 iii. Decreased Abalone Cove Sewer District Fund by $50,000 iv. Decreased Improvement Authority Portuguese Bend Fund by $15,000 v. Added the additional transfer to the CIP Fund from $620,000 (affirmed on April 17, 2025) to $546,650, minus the potential increase of $150,000 of tax assessments from,ACLAD/KCLAD. 3) Reviewed and approved the FY 2025-26 Preliminary Citywide Budget consisting of the Capital Infrastructure Program (CIP) Fund and program list, Special Revenue Funds, and Permanent Funds and affirmed the changes since the April 29 Budget Workshop: a. Adjusted CIP Fund's Transfers-In CIP from $620,000 (affirmed on April 17, 2025) to $546,650, minus the potential increase of$150,000 of tax assessments from ACLAD/KCLAD. City Council Regular Minutes June 3,2025 Page 10 of 13 b Increased the Capital Improvement Program from $27.5 million to $28.6 million, based on the following adjustments. i. Increased overall budget for landslide to reflect approximately 33% year- over-year decrease in costs for landslide emergency stabilization measures as compared to a 50% year-over-year decrease presented during the CIP Budget Workshop. ii. Increased CIP Fund Expenditures by $1,055,000 as follows: • Increased by $210,000 to fund the Portuguese Bend Landslide Remediation Project Design (BRIC Phase 1) using only the CIP Fund rather than the BRIC grant and CIP match in the event that the BRIC grant Phase 1 awards are revoked. • Increased by $700,000 for the addition of a pilot program sub-surface geophysical/hydrogeology assessment to the landslide surface drainage study. • Decreased Civic Center Campus Master Plan by $105,000 • Decreased Lift Station Improvements at Lower Point Vicente by $100,000 • Increased Roadway Maintenance (PVDE) by $350,000 iii. Decreased Gas Tax — HUTA Fund by $500,000 iv. Increased Gas Tax — SB1 Fund by $750,000 v. Increased Proposition C Fund by $150,000 vi. Decreased Measure R Funds by $400,000 vii. Decreased Federal Grant Fund by $1,436,277 viii. Increasing State Grant Fund by $1,495,000 4) Reviewed and approved the FY 2025-26 Preliminary Budget for Internal Service Fund: a. Equipment Replacement Fund includes $310,800 in annual charges for reserves and interest earnings, and $781,929 or 15% of the replacement value of equipment and depreciation. b. Employee Pension Service Fund includes $400,000 in Transfers-In and $662,000 in CaIPERS payments, including $100,000 in proposed additional payment towards the City's Unfunded Accrued Liability for CaIPERS with no impact to the General Fund. 5) Directed Staff to return on June 17, 2025 for the budget public hearing and budget adoption consideration; and 6) Based on the projected ending balance of$2.2 million in the CIP Fund and a draft budget showing expenditures exceeding revenues by $9 million, directed Staff to begin an exercise of exploring ways to reduce expenditures associated with landslide-related projects by identifying approximately $4.5M less in capital spending or approximately 50% of the projected deficit. The motion passed on the following roll call vote: AYES: Lewis, Perestam, Seo and Mayor Bradley 11 NOES: Ferraro 5. Consideration to receive the Fiscal Year 2025-26 Financial Model. (Moya) City Council Regular Minutes June 3, 2025 Page 11 of 13 City Clerk Takaoka reported that no late correspondence was received, and there were no requests to speak. Director of Finance Ramos introduced Finance Deputy Director Robert Moya who presented a staff report and PowerPoint presentation. Mayor Bradley moved, seconded by Mayor Pro Tem Seo, to approve Staff Recommendation as follows: Received and filed the Fiscal Year 2025-26 Financial Model for the General Fund and all other Special Funds. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None 6. Consideration to receive the fourth quarter status update of the Fiscal Year (FY) 2024-25 City Council Goals and approve the FY 2025-26 City Council Goals. (Jun) City Clerk Takaoka reported that there were no requests to speak. Deputy City Manager Jun presented a staff report and PowerPoint presentation along with Public Works Director Awwad, Senior Administrative Analyst Matt Waters and Director of Community Development Forbes. Mayor Bradley moved to extend the meeting to 11:15 P.M. Without objection, it was so ordered. City Council asked questions of Staff. Mayor Bradley moved, seconded by Mayor Pro Tem Seo, to approve Staff Recommendations as follows: '1) Received and filed the fourth quarter status update of the FY 2024-25 City Council Goals; and, 2) Approved the FY 2025-26 City Council Goals considered during the March 17, 2025 Goals Workshop. The motion passed on the following roll call vote: AYES: Ferraro, Lewis, Perestam, Seo and Mayor Bradley NOES: None CONSENT CALENDAR ITEM(S) PULLED BY A COUNCIL MEMBER: None FUTURE AGENDA ITEMS: None City Council Regular Minutes June 3, 2025 Page 12 of 13 CITY COUNCIL ORAL REPORTS: Each Councilmember present reported on his attendance at various organization and association meetings. ADJOURNMENT: At 11:09 P.M., Mayor Bradley adjourned to 6:00 P.M. on Tuesday, June 17, 2025, for a Closed Session meeting followed by a 7:00 P.M. Regular meeting. Mayor Bradley adjourned the meeting in honor and memory of Marthe Cohn. David L. Bradley, Mayor Attest: eres lkaoka, City Clerk City Council Regular Minutes June 3, 2025 Page 13 of 13