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Home My WebLink About2018-05-15 Finance Committee Summary MinutesSpecial Meeting May 15, 2018 Chairperson Scharff called the meeting to order at 9:04 A.M. in the Community Meeting Room, 250 Hamilton Avenue, Palo Alto, California. Present: Filseth, Kou, Scharff (Chair); Tanaka left at 2:43 P.M. and returned at 3:34 P.M.; Kniss arrived 2:55 P.M. and left the meeting at 3:34 P.M. Absent: Oral Communications None. Agenda Items FY 2019 Proposed Budget Overview. MOTION: Vice Mayor Filseth moved, seconded by Council Member Tanaka to direct Staff to return to the Finance Committee, within a week, with options to reduce the general fund expenses by $4 million to explicitly accrue funds for unfunded pension liability. INCORPORATED INTO THE MOTION WITH THE CONSENT OF THE MAKER AND SECONDER to increase the amount from $4 million to $5 million. MOTION AS AMENDED RESTATED: Vice Mayor Filseth moved, seconded by Council Member Tanaka to direct Staff to return to the Finance Committee, within a week, with options to reduce the general fund expenses by $5 million to explicitly accrue funds for unfunded pension liability. MOTION AS AMENDED PASSED: 4-0 Non-Departmental, Operating Budget Overview. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve the Non-Departmental Operating Budget. MOTION PASSED: 4-0 City Council Appointed Officials and City Council. City Attorney, Operating Budget. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve the City Attorney Operating Budget. MOTION PASSED: 4-0 City Auditor, Operating Budget. MOTION: Chair Scharff moved, seconded by Council Member Tanaka to recommend to the City Council to delete the Performance Auditor 1 and 2 positions and the Senior Performance Auditor positions and direct the City Auditor to take 80 percent of those savings to hire contract auditors. MOTION PASSED: 4-0 City Clerk, Operating Budget. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve the City Clerk Operating Budget. MOTION PASSED: 4-0 City Council, Operating Budget. MOTION: Chair Scharff moved, seconded by Council Member Tanaka to recommend to the City Council to tentatively approve the City Council Operating Budget. MOTION PASSED: 4-0 City Manager, Operating Budget. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to direct the City Manager to move the .75 Office of Sustainability Management Analyst position to the City Manager budget and to return to Finance Committee with the results of this budget change. MOTION PASSED: 3-0 Tanaka not participating Office of Sustainability, Operating Budget. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve the remainder of the City Manager’s Office Budget and Office of Sustainability Budget. MOTION PASSED: 3-0 Tanaka not participating June 30, 2017 Actuarial Valuation of Palo Alto’s Retiree Healthcare Plan and Annual Actuarially Determined Contributions (ADC) for Fiscal Years 2019 and 2020 (Staff Report #9213). MOTION: Chair Scharff moved, seconded by Council Member Kou to recommend to the City Council to tentatively accept the June 30, 2017 actuarial valuation of Palo Alto’s Retiree Healthcare Plan and approve full funding of the annual Actuarially Determined Contributions (ADC) for Fiscal Years 2019 and 2020. MOTION PASSED: 3-1 Tanaka no The Committee took a break from 11:54 A.M. to 12:15 P.M. Human Resources Department, Operating Budget. General Fund. General Liability Fund, Operating Budget. Employee Benefit Funds. General Benefits Fund, Operating Budget. Workers Compensation Fund, Operating Budget. Retiree Benefit Fund. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve the Human Resources Budget. MOTION PASSED: 3-0 Tanaka not participating Administrative Services Department. General Fund. Printing & Mail Fund. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve the Administrative Services Budget. MOTION PASSED: 3-0 Tanaka not participating Information Technology Department. Operating Budget. Capital Budget. MOTION: Council Member Tanaka moved, seconded by Council Member XX to recommend to the City Council to remove the upgrade of the Council Chambers from the budget. MOTION FAILED DUE TO LACK OF A SECOND MOTION: Council Member Tanaka moved, seconded by Council Member XX to recommend to the City Council to direct Staff to look into an open data alliance which will allow us to make comparisons. MOTION WITHDRAWN BY THE MAKER MOTION: Chair Scharff moved, seconded by Council Member Kou to recommend to the City Council to tentatively approve the Information Technology Capital and Operating Budgets. MOTION PASSED: 3-1 Tanaka no Development Services Department. MOTION: Chair Scharf moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve the Development Services Budget. MOTION PASSED: 4-0 Community Services Department. MOTION: Council Member Tanaka moved, seconded by Council Member XX to recommend to the City Council to have the Community Services Department look into what the fully subscribed services are that have greater than a three percent non-resident participation in them. MOTION FAILED DUE TO LACK OF A SECOND MOTION: Council Member Tanaka moved, seconded by Council Member Kou to recommend to the City Council to request Staff to look at Community Services Department programs and find out what percentage of non-residents there are. MOTION FAILED: 2-2 Filseth, Scharff no MOTION: Vice Mayor Filseth moved, seconded by Chair Scharff to recommend to the City Council to tentatively approve the Community Services Department Budget. MOTION PASSED: 4-0 Council took break from 2:43 P.M. to 2:55 P.M. Utilities Department. Utilities Advisory Commission Recommendation that the City Council Adopt: 1) a Resolution Approving the Fiscal Year 2019 Electric Financial Plan, and 2) a Resolution Increasing Electric Rates by 6 percent by Amending the E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU and E-14 Rate Schedules. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve: A Resolution Approving the Fiscal Year 2019 Electric Financial Plan; and A Resolution Increasing Electric Rates by 6 percent Amending the E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU and E-14 Rate Schedules. MOTION PASSED: 4-0 Utilities Advisory Commission Recommendation that the City Council Adopt: 1) a Resolution Approving the Fiscal Year 2019 Gas Utility Financial Plan; and 2) a Resolution Increasing Gas Rates by 4% by Amending Rate Schedules G-1 (Residential Gas Service), G-2 (Residential Master-Metered and Commercial Gas Service), G-3 (Large Commercial Gas Service), and G-10 (Compressed Natural Gas Service). MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve: A Resolution Approving the Fiscal Year 2019 Gas Utility Financial Plan; and A Resolution Increasing Gas Rates by 4 percent Amending the E-1, E-2, E-2-G, E-4, E-4-G, E-4 TOU, E-7, E-7-G, E-7 TOU and E-14 Rate Schedules. MOTION PASSED: 4-0 Electric Fund. Operating Budget. Capital Budget. Mayor Kniss left the meeting at 3:34 P.M. Council Member Tanaka returned to the meeting at 3:34 P.M. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve the Electric Fund Capital and Operating Budgets. MOTION PASSED: 3-0 Tanaka abstain Fiber Optics Fund. Operating Budget. Capital Budget. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve the Fiber Optics Fund Capital and Operating Budgets. MOTION PASSED: 4-0 Gas Fund. Operating Budget. Capital Budget. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to direct Staff to bring to the Finance Committee by August 2018 a policy discussion on the strategy for prioritizing Capital Improvement Project criteria. MOTION PASSED: 4-0 MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve the Gas Fund Capital and Operating Budgets. MOTION PASSED: 3-1 Tanaka no Wastewater Collection Fund. Operating Budget. Capital Budget. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the Council to tentatively approve the Wastewater Collection Fund Capital and Operating Budgets. MOTION PASSED: 3-1 Tanaka no Water Fund. Operating Budget. Capital Budget. MOTION: Chair Scharff moved, seconded by Vice Mayor Filseth to recommend to the City Council to tentatively approve the Wastewater Treatment Fund Capital and Operating Budgets. MOTION PASSED: 3-1 Tanaka no ADJOURNMENT: Meeting was adjourned at 5:02 P.M. FINAL ACTION MINUTES Page 2 of 9 Finance Committee Meeting Final Action Minutes 5/15/18 FINANCE COMMITTEE FINAL ACTION MINUTES Page 1 of 9