Wednesday, August 16, 2023

My 8.15.23 Meeting Summary

Last night the Council discussed several significant items:

- We received a presentation from the Contra Costa Mosquito and Vector Control District regarding their scope of services and tips on reducing the risk that certain pest insects and animals present.  As part of the District, the City of Clayton is able to appoint one Trustee to sit on the Board of the District.  Currently that seat is vacant.  If any are interested in learning more or applying to be a Trustee, please contact the City Clerk.

- We received a quarterly update on the City's investment portfolio.  This was also discussed at our Budget and Audit Committee meeting the previous day.  We are experiencing higher yields with some of our more recent buys, however the portfolio continues to be weighted with lower yield CDs that were purchased years ago.  We will be doing an analysis whether it makes sense to sell those at a loss in order to utilize proceeds for higher yield products, but it is unlikely that the return would make that worthwhile.  Overall we still have opportunity to move more liquid cash  into higher yielding investments and the Budget and Audit Committee consisting of myself and Councilmember Trupiano directed staff to do so.

Our current practice has been to concentrate in CDs which are not a liquid product, and are limited to buys of $250K.  With an investment portfolio north of $16M, this means that staff needs to monitor a long list of investments.  The Committee asked Staff to prepare an investment plan that describes the laddering targets so that we can reduce the overall number of investments while still maximizing safety, liquidity, and yield. Overall the City recognized approximately double the investment earnings in FY23 than anticipated due to some of these moves.

- We held a public hearing to adopt an updated Master Fee Schedule. This concludes the process that began several months ago and updates our fees to ensure the City is recovering its costs when it performs certain services. In addition, when a portion of the City is being rented as a venue for an event, the City has the right to collect a fee in exchange for that use.

As large events in our downtown create a disproportionate use of staff time and resources that isn’t well captured in a line item fee schedule, a Special Events Fee was added to our Master Fee Schedule that is tiered based on the size of the event. This is analogous to a park or other facility rental on a larger scale. For many years, the City’s downtown has been the venue for many commercially successful events. And during that time, the City chose to waive substantially all fees associated with the rental of its facilities.  The updated fee schedule does offer a discount on Special Event Fees to non-profits in order to recognize the value they bring.

There were several speakers extolling the virtues of the CBCA at this meeting.  On that front, I agree.  The organization adds a tremendous amount of value to the community, and I commend the generosity of both the organization and its volunteers. These activities however, do not exempt anyone from have to pay for use of City facilities. Fee waivers or discounts represent taxpayer funded subsidies and should be made judiciously. To the extent that the City does not collect fees that it is able, taxes from residents must make up the difference.  

Earlier I made a proposal that could lower or waive fees even further in exchange for an arrangement where the CBCA and the City enter into a revenue sharing agreement.  This should be familiar to the CBCA since they also engage in a revenue sharing arrangement with the vendors that come to their events.  For example, a portion of gross revenue from food sales that take place at events like Art & Wine are paid to the CBCA from the food vendors themselves.  In addition, each vendor pays the CBCA for the privilege of renting space on City streets, those same streets that the CBCA has had their fees waived for the past 15 years.

Unfortunately this proposal was rejected by the Board of CBCA without discussion or any exploration on what was possible.  There was no counter proposal made.  It appears that the position of the organization is that the only acceptable option is to be able to continue to use City facilities for free.  That would not be a prudent position for the City to take and it would be unfair to the residents of this community.

Councilmember Cloven raised a question about the legality of charging a Special Event Fee.  This was addressed squarely by our City Attorney that in fact the Special Events Fee is permissible.  To add more context regarding that discussion, I made a post specifically about the laws surrounding municipal fees here:

We adopted the updated fee schedule on a vote of 3-2 with Councilmembers Cloven and Tillman voting no.  The fee schedule becomes effective in 60 days.  Given events can be booked up to one year in advance, this means that should the organization choose, they can reserve events through 2024.  This would be 1.5 years after we terminated the MUA.

- We directed staff to include instructions with how to use ClearGov to review payment obligations (check register).  Traditionally payment detail has been on the consent calendar at each regularly scheduled Council meeting.  At the next meeting this will continue, with instructions on how to access ClearGov to view the same data.  After that a link to ClearGov will be included in each agenda packet.

- We designated a voting delegate (Trupiano) and alternate (Diaz) for the upcoming September CalCities annual conference consistent with the committee assignments that were approved back in Dec-22.