CC MIN 05312022 - Laserfiche WebLink

returning those funds to the CIP. She confirmed the Rainy Day Fund currently sits at 30% but will be reduced once funds move out of the General Fund and back to CIP. She noted at no point will it fall below the target fund balance. Councilmember Testa inquired why there is a Reserve and a Rainy Day Fund. Interim Finance Director Shah explained a reserve is good fiscal practice and allows the City time to plan and react in worst- case scenarios. She noted reserve policies will be found in almost any financial institution that manages its funds appropriately. She explained the Rainy Day Fund was the City Council and staffs way of mitigating the unknown of the pandemic. Councilmember Narum inquired if there is a cost-saving by combining the Library roof repairs and the fire control panel work. Director Kirkpatrick advised there would be no cost savings as they are different types of work. He acknowledged the fire panel is old and needs to be replaced. He reported he has discussed the issue with the Fire Marshal and the only reason to replace the fire panel is its age. Councilmember Narum inquired about funding sources for the West Las Positas Boulevard repair. Director Kirkpatrick reported a geotechnical study was recently conducted and the recommendation from the report is that there will be isolated areas for repair. Interim City Manager Dolan explained the funding source is pulled from several areas, although City Traffic Engineer Tassano believes grant funding can be found. It will fall back to the General Fund if other sources cannot be identified. Councilmember Narum inquired if the information from the study will be positive for reducing funding. Director Kirkpatrick advised he believes it is but noted no one could have predicted the increase in oil which has resulted in bids coming in significantly higher. Councilmember Narum inquired if Director Kirkpatrick was comfortable with the funding for the widening of Bernal Avenue at First Street. Director Kirkpatrick explained staff has received estimates that show the funding is adequate but with the cost of asphalt going up and Pacific Gas & Electric (PG&E) needing to remove their vaults for the City to widen the street, it has been delayed and may cost more with time. He noted there is some contingency. Councilmember Narum inquired about the balance of the Repair & Replacement Fund at the beginning of the fiscal year and the projected ending balance. Interim Finance Director Shah reported the fund started with $19 million and $19.5 million projected. She advised staff is anticipating another $3 million in revenues to that fund balance. She reported the expenses are approximately $8.2 million with a projected ending fund balance of$14.6 million. Councilmember Narum inquired what the average balance of that fund has been over the last five years. Interim Finance Director Shah reported the average fund balance for the last five years was $23 million. She confirmed the City is drawing down on the fund in this proposed budget. She further advised there is an increase in need due to deferment of expenses. She clarified the fund balance is decreasing by $9 million from where it has typically been over the last five years. Councilmember Arkin inquired about Planned Unit Development (PUD) fees and if it has ever been determined if it covers the full cost of staff time. She noted that it seems like there is a big variance in certain projects in terms of staff time required. Interim City Manager Dolan reported the City conducted a fee study and updated the fees recently. Community Development Director Ellen Clark confirmed there is a wide range of staff time from simple PUDs to more complicated ones. She advised the fee attempts to strike a balance. Councilmember Arkin inquired if the 30.7% Operating Budget threshold was referencing the General Fund Reserve. Interim Finance Director Shah clarified the threshold is a combination of both the Rainy Day Fund and the General Fund Reserve. She explained that the Rainy Day Fund is a part of the City Council Minutes Page 5 of 11 May 31,2022