CC MIN 03012022 - Laserfiche WebLink

purchase of water by $1.9 million. She reported staff will be bringing an item to the City Council on March 15 to look at implementing the drought rates it had approved in 2015. Director Olson reported the Sewer Operations and Maintenance Fund shows a decrease in revenues and noted there are increases in expenditures. She reported the Golf Fund shows a $400,000 increase in revenue and a $192,000 increase in expenses for staff. She recommends looking at the surplus at the year-end and looking to repay the General Fund loan to the Golf Fund. Lastly, she reported a $135,000 decrease in revenues in the Internal Services Funds and a $656,000 increase in expenses. Councilmember Balch noted the pressure on the City's Operating Budget will be relieved by the large return from CaIPERS last year. He inquired how quickly the City will realize the impact of that relief. Director Olson explained that CaIPERS reported these numbers and has adjusted operations over the last several years to be more conservative. Councilmember Testa reported she attended a CaIPERS workshop where they announced the 21% return. She advised they noted at the time they indicated the return will make an impact. Director Olson reported she attended a CaIPERS webinar and they anticipated savings. She explained nothing is happening for the next 3 to 4 years but then the savings will be realized. Councilmember Testa inquired about the $600,000 coming from the COVID Reserve. Director Olson explained it was part of the $1 million allocated General Fund Surplus in FY 20/21 to help departments recover pandemic-related expenses. She confirmed they were not related to the ARPA funds. Councilmember Narum inquired why staff is recommending allocating $5.3 million to the CIP Reserve instead of backfilling the Repair and Replacement Fund. Director Olson advised that backfilling the Repair and Replacement Fund is an option. She believes the Repair and Replacement Fund will be rebuilt quickly according to the financial plan at $20 million. She noted the amount is a policy decision. Councilmember Arkin inquired if the $400,000 for the Crisis Response Program is at risk. Director Olson advised it is sitting in a separate reserve and is not at risk. Councilmember Arkin inquired about the General Fund loan to the Golf Fund. Director Olson explained the loan was to finance supporting infrastructure for the Golf Course. She advised the balance is $5.5 million. Councilmember Arkin noted the Sewer Operations and Maintenance Fund balance is 44% which is outside of the City policy of the maximum 40%. Director Olson advised the Water Committee is conducting a rate study and the balance of the fund is included in the rate study. Mayor Brown expressed surprise regarding the net decrease in expenditures for Zone 7 water and inquired if that means residents are already cutting back on water usage. Director Olson advised it is a reflection of cutbacks to date and anticipated cutbacks through year-end. Mayor Brown inquired about the $27,500 contribution to the Pleasanton Unified School District's (PUSD) Solar Panel Project. Interim City Manager Brian Dolan advised the previous City Manager agreed to contribute to the project. Mayor Brown reported she and Councilmember Testa attended a Livermore/Pleasanton Liaison Committee and noted there was a contingency for Livermore Airport studies. Interim City Manager Dolan advised there is a consultant on board who is reviewing the materials. Mayor Brown Mayor Brown opened public comment. There being no speakers, the public comment period was closed. City Council Minutes Page 4 of 12 March 1, 2022