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CC SR 20250617 D - Fiscal Sustainability Subcommittee CITY COUNCIL MEETING DATE: 06/17/2025 AGENDA REPORT AGENDA HEADING: Consent Calendar AGENDA TITLE: Consider renaming and expanding the roles of the City Council Labor Unit Negotiations Subcommittee and Audit Subcommittee into the Fiscal Sustainability Subcommittee. RECOMMENDED COUNCIL ACTION: (1) Rename and expand the role of the City Council Labor Unit Negotiations Subcommittee and Audit Subcommittee into the Fiscal Sustainability Subcommittee to include addressing matters related to the City’s fiscal sustainability and maintain Mayor Bradley and Councilmember Lewis as Subcommittee Members. FISCAL IMPACT: None. Amount Budgeted: N/A Additional Appropriation: N/A Account Number(s): N/A ORIGINATED BY: Catherine Jun, Deputy City Manager CJ REVIEWED BY: Same as below APPROVED BY: Ara Mihranian, AICP, City Manager BACKGROUND: The City Council formed the Labor Unit Negotiations Subcommittee to provide staff with direction on labor negotiations with employee bargaining units. In addition, the Council formed the Audit Subcommittee to provide feedback on City audits, as needed. This year, Mayor Bradley and Councilmember Lewis were appointed to both Subcommittees. Since March, they have been providing the entire City Council with feedback on negotiations for successor Memoranda of Understanding with the City’s two recognized employment groups. This work often includes assessing the fiscal impacts to the City’s operations and finances. Furthermore, both members – as part of the Audit Subcommittee - met in March 2025 to review and provide feedback on the City Auditor’s FY 2023-2024 audit results. 1 Lastly, during the March 17, 2025 City Council Goals Workshop, the City Council directed staff to research ways to enhance fiscal sustainability to support City operations and infrastructure investments; this item was adopted as a major project under the City Council’s Quality of Life Goal on June 3, 2025. Since then, staff has conducted research and is developing a framework of short- and long-term action items including future strategies for ongoing cost containment, enhancing revenue sources, and identifying other opportunities to maintain long-term sustainability. DISCUSSION: To aid in this expansive effort on fiscal sustainability, including matters related to labor negotiations and audits, Staff recommends establishing a Council Subcommittee to provide feedback and finetune the overall fiscal sustainability strategy. Since the Labor Unit Negotiations and Audit Subcommittees often engage in fiscal assessments and also meet infrequently (prior to Memoranda of Understanding expiring or as needed), Staff recommends renaming them and expanding their roles to encompass not only labor negotiations and audits but also work that includes fiscal sustainability. For consistency, Mayor Bradley and Councilmember Lewis are recommended to remain on the renamed and expanded role of the Fiscal Sustainability Subcommittee through December 2025. CONCLUSION: Approve renaming and expanding the role of the City Council Labor Unit Negotiations Subcommittee to the Fiscal Sustainability Subcommittee and maintain Mayor Bradley and Councilmember Lewis as members. 2