City Council - Regular Meeting

Okay. Deposit

Okay, good evening and welcome to your Pleasanton City Council meeting. Today is Tuesday, December 16th, 2025 at 700 p.m. Uh it is our last meeting of 2025 and we appreciate you being here. Happy holidays to everyone. Council member Ta, if you can please lead us in the pledge and if I can ask everyone to stand if you are able. I aliance to the flag of the United States of America and to the republic for it stands. One nation under God, indivisible, with liberty and justice for all. Thank you very much. Can we have roll call, please? Council members,

present. Gatos, present. Nybert, here. Ta here. Mayor Balch, present. Thank you.

Thank you very much. Uh I have a quick couple of announcements I'd like to start us off with. Uh we are continuing to transition to electronic agendas and voting. So that's what we've got in front of us. We have two screens we have to toggle between and uh 2026 will lead us off to being principally there. So we've been transitioning over a few meetings. Secondly, I just wanted to commend our community as well as our Pleasanton Downtown Association, our Pleasanton Police Department, our Pleasanton Limmore Pleasanton firefighters, and all of the staff who were involved to making our hometown holidays an amazing event, our city glistened. Please don't forget to check out the new Lion's Wayside band stand, also decorated by staff. It is by far an amazing anchor to our downtown and something we should all take some pride in. And uh as we'll close the meeting, we do wish you a safe and happy holiday and new year. With that, we'll proceed to agenda amendments. Oh, excuse me. Report out in close session. No uh reportable item confirming.

No report this evening, mayor. Thank you very much. Uh agenda amendments by staff. Thank you, mayor. No changes from staff this evening. Thank you. Any agenda amendments by my fellow council members at this time? I'd like to pull item nine for discussion. Okay, item nine will now become item number 20 and I will pull number one for discussion.

Okay, item number one will become item 21. Anything any other amendments? Let me just write that down. Okay, thank you very much. Uh with that we are going to uh sorry uh proceed to the consent calendar. Items listed on the consent calendar are hereby considered routine in nature and may be enacted by one motion. If discussion is required that particular item will be removed from the consent calendar and will be considered separately. Consent includes items now 2 through 17 minus item one which I didn't mention and item nine. I have to read a disclosure for item three, but before I do, I will proceed through. See, attorney, I can do that before we take a motion or have discussion. Okay. So, with that, are there any clarifying questions on the consent calendar? Uh, remaining items hearing none. Okay. I'll open it up for public comment if you'd like to speak on the consent. Actually, I'll read this before we uh do the public comment in case the public would like to do that. Uh, so I'm reading this as for items on the consent calendar. State law requires an oral summation or summary of changes in compensation for local agency executives, which is on item number two on tonight's consent calendar. This action amends the employment contracts for the city attorney and the city manager to increase their salaries by 3.5% effective September 1st, 2025. So that's now been read into the record. So, we'll go to public comment on consent. And I have one speaker card, Miss Christine Dilman. Welcome. You'll have three minutes.

Thank you. Good evening, mayor and members of the city council and city of Pleasanton staff. My name is Christine Dilman and I am the executive director of Trialy Haven. On behalf of our board, staff, and most importantly, the survivors we serve, I want to sincerely thank the city of Pleasanton for its support through the permanent local housing allocation funding, PHA. During the rebuild of our shelter, PHA funding is allowing Trial Haven to safely house 30 survivors of domestic violence and their children at two confidential off-site locations. Last fiscal year, we sheltered 164 survivors and their children. Because of this investment, families fleeing violence were not turned away. They have a pl safe place to sleep, to heal, and to rebuild their lives without interruption to critical services. PHA funding is doing more than provide shelter. It is providing stability during crisis. It ensures that Pleasanton survivors remain connected to counseling, to advocacy, and long-term housing pathways at a time when their safety and well-being depend on it. We are deeply grateful for Pleasanton's partnership and leading in addressing housing insecurity for some of our most vulnerable residents. As Trialy Haven shelter rebuild is fully now underway, I respectfully encourage the city council to consider additional PHA funding for Trialy Haven. Continued support will allow us to meet the demand for safe shelter for victims of domestic violence and their children during the remaining rebuild. Ensuring survivors have a pl safe place to turn. Thank you for your compassion, your commitment, and your

ongoing partnership in keeping our community safe. Thank you. Thank you very much. Okay. Are there any additional speakers for the consent calendar? Please approach the podium at this time if you would like to speak. Hearing and seeing none, we'll close public comment on consent and bring it back for the council. I must disclose that I will need to recuse on item number three. Uh there is an item for a sign permit for St. Augustine's Church, which is within 110 150 ft of my home. So, uh, on advice of city attorney, I will be recusing from that item. If that is for further discussion, I'll have to step away. So, with that, uh, council, what would we like to do for consent? Any comments or a motion? I'll move to approve the consent calendar.

I'll second it.

Motion made and seconded. Any comments by any council member before we take a vote? Seeing none, I actually do have a comment. I'm going to read uh that I prepared for myself uh on items related to 2, 10, and 11. They are the compensation items on the consent calendar. They are not done without uh knowledge and uh work by the council. Um so I wanted to acknowledge that I have received a lot of communication from members of our community regarding the three labor matters on tonight's agenda, items 2, 10, and 11. I want to be clear that our labor contracts do not align or expire at the same time. While these actions that we're taking tonight may appear synchronized because they appear before us at the same meeting, they are not. The underlying effective dates and timelines of each of these agreements are different. And I want our community to be aware of that. Like my fellow council members, we are trying to increase transparency and accountability. And I believe by the council hearing these contracts tonight at the same meeting, we're actually increasing accountability and transparency so that the public can see them in full context and better understanding of the differences between the three contracts we're evaluating. More commonly, we see that these agreements would be spread throughout the year, which can burden the public to recall historical context for comparability. At least that's been my experience. Um there are definitely clear uh different approaches to how best to advance that common goal of transparency and I appreciate any feedback from the community on how they would like to see it done better. Uh, with that, uh, outside of these three contracts before us, I want to also remind our community that we have labor agreements, including our police contract, which will be expiring in 2026, as well as our firefighters and battalion chief agreements, two different agreements, which were ratified earlier this year by this council and will expire in 2028.

Again, I appreciate any input that the community would like to bring to us related to these contracts. I'm sure my fellow council members would as well. And I would like to say for each of the groups under those labor agreements, I appreciate the hard work, dedication, and contributions that each of these groups are bringing to Pleasanton. Thank you very much on behalf of the community. With that, we have a motion made and seconded. Can we have a roll call vote? Oh, excuse me. Electronic vote. We're electronic voting. See, even I fall back into the old habits. The motion passes unanimously.

Thank you very much. Okay, so with that, we are now proceeding to uh item 18, public comment on items not listed on the agenda. Speakers are limited to three minutes since I don't know exactly what anyone wants to speak about. I have a little statement I'd like to read. Good evening and welcome. This is an opportunity for members of the public to address the city council on any matters that are within the council's subject matter jurisdiction but are not listed on the agenda. If you wish to speak for a matter that is on the agenda, please reserve your comments for when we get to that matter. If you wish to speak now or for any future item, I ask that you please fill out a blue speaker card and turn it into the clerk. I ask our community members to be respectful and help maintain decorum. Speakers may have different opinions and we want to hear all perspectives and viewpoints. To that end, please no clapping, booing, or other disturbances. If you would like to show your agreement with what a speaker is saying, you may simply raise your hand and we will understand that as additional support. Please also know that this is your time to be heard by us. If you do ask questions, those won't necessarily be taken up uh answered unless taken up by a council member after the conclusion of your time or at the end of the public comment period in total. Speakers are hereby limited to three minutes. And I have one speaker card at this time, Miss Debbie Wallace, for three minutes. And again, if you'd like to speak, please fill out a card and come on up. Welcome.

Thank you. Good evening. Um, I just want to take a moment to thank this new council for the transparency you have all shown this past year and for all the forward progress that Pleasanton has made. So, that's all I have to say. Thank you. I really appreciate it as I'm sure most residents do. Um and happy holidays.

Thank you very much. We appreciate the comments. All right. If you would like to speak on any matter that is uh not on the agenda at this time, please approach the podium. Any other speakers? Hearing none. Seeing none, we'll close public comment and now proceed on. So just uh for those in the room, we have three items for public hearings and other matters. We have item 19, the main event, which is the asset management plan and quick summation. item number 20 and item number 21. Item number 20 is nine number nine previously known and item 21 is item one. So if there was anything that you were here for that was on consent that has already now been concluded at the business of the council. So thank you very much and have a great day. And with that we'll proceed to item number 19. Receive a milestone progress report and a presentation on the asset management plans results CIP number 24460. Mayor, if I might, I'm just gonna just kick this kick this off. Um, so I'm happy to be here tonight with uh with Adam Nelki, our city engineer, uh, as well as our consultant from Kauga. We we'll get into that part of the presentation, but I just want to really appreciate the the fact that we've been able to move forward and make so much progress uh with respect to inventorying what the city owns and uh basically tonight being able to update you on the condition assessment for what we own uh as an organization. Uh and and really we're going to be better able to plan for the future, fund and maintain the things that support all of what the community expects from us uh as a as the city of Pleasanton. So, with that, uh, I'm going to frame this up a little bit. Uh, this tonight is a is an interim step much like we did with our utilities and our water rates. Uh, the the asset management plan uh is is now largely complete in terms of the inventory and the assessment. We will move into

prioritization and funding uh in the spring. Uh, so tonight we're we're asking you to accept the work that's been completed, accept the update on the work that's been completed uh as an inventory of the assets. And with that, I'm going to turn it over to uh to Adam and we'll start the presentation this evening. Thank you. Thank you. Welcome. Good evening, Mayor Balch, Council Public. Your mic, my friend. Hit it twice. No problem.

Good evening, Mayor Balch, Council and the Public. Tonight, I bring you a holiday gift of information. Over the past 18 months, the city has embarked on a journey of developing an asset management program that has consolidated various master plans, inventories, and found many assets long forgotten. The information has been placed in a software system called Iris that interfaces with our existing software programs and has tools to help guide staff in the overall planning and management of the city's infrastructure. This work was done with the support and guidance of Kaigo Solutions. And with me tonight from Kaoga is their president and founder, Colin Chong, as well as our project lead, Tom Mucha. Tonight, I'd like to give you a clear understanding of what an asset management plan is, explain the approach to the project, outline the key project phases, and share our findings from the inventory. We will discuss the life cycle cost methodology and present the current state of our infrastructure for the general fund assets including the condition profile project asset replacement needs over the next 10 to 20 years and the existing funding gaps that we found. An asset management plan is a living document. It records the assets you own and manage, the current condition of those assets, which assets are critical and how you intend to manage them. And based on that, what investments are needed in the future to replace or rehabilitate those assets in kind. These are all with the goal to help sustain the current level of service. An asset management program is not a master plan, but provides the information and tools that go into them. It's not a CIP program that determines the upgrades that should take place or enhancements enhancements to improve the level of service to meet future demands. The purpose of this asset management plan is

to help us move from a reactive to a proactive state of management by identifying assets nearing failure, ensuring we had the necessary budget and resources to address them. The project followed the US EPA's asset management best practices framework which focused on addressing the five core questions. What assets do we own and manage? What are their current conditions? Which assets are critical and how are those assets managed? What will it cost to sustain them? And are we on the right financial path? The project tasks were developed to address those core questions. First, we defined and documented all the assets, including their current conditions. Next, we identified which assets are important and which are not as important. Then, we established the desired levels of service and develop management strategies to meet those levels of service. After that, we calculated the ongoing asset replacement and rehabilitation cost required in the future. Finally, like we're doing tonight is starting to communicate out these findings so we can work collaboratively to figure out how to plan for the future. The project was divided into three key phases with now phase one and two being completed. Phase one identified the gaps, established the foundational asset hierarchy and level of services and life cycle framework which guided the data collection. Life cycle cost analysis and prioritization. In phase two, the gap was closed and required physically inventorying all the assets, assessing their overall conditions and identifying any immediate maintenance or replacement needs. Staff provided input to prioritizations of the assets and assessing their criticality and a comprehensive asset database for the city has been developed. Phase three will build off this data

foundation and condition scores to forecast future needs and prioritize actions. It will help validate the risk scores and review prioritization results to ensure they align with the staff experience and expectations. Financial analysis underway to evaluate funding options and budget scenarios. Also in phase three, to ensure the data stays up to date, it will be fully integrated with the city's existing work order systems called MainStar and other databases that were used to update and develop the assets. This allows us to update the conditions through our regular processes that we do for services so that we don't have to duplicate those works. In addition, our GIS layer, that is our graphical way that we represent our assets, will be updated with higher quality data from when it was originally done. And ultimately, we're going to be going live with our IRS software, which will continuously to update every time that we close out a work order and do work. This is going to keep us up to date with the current needs of our city. And as work is performed, the condition profiles will automatically be updated and the future asset replacement schedules will extend out. The list of assets are going to continue to grow as we find new things, but currently we have over 200,000 assets in the city. An assets were defined at a basic level as something that will last longer than one year and require an investment, maintenance, and eventual replacement. For the public sector, it also includes factors like access to services, service quality, risk, and community expectations. 10 major categories were developed that align with the departments and functional classes and then further subdivided to reflect how assets support city services. It doesn't include small

things like fire sprinklers and door knobs, but some assets can be as large as a roof for a building. Buildings have over 22,000 assets, including 92 buildings and 94 structures. Parks and trails include over 5,200 assets comprised of over 40 parks and more than 20 trails. The city's fleet consists of 386 assets covering vehicles, trucks, emergency vehicles, and heavy equipment. For utilities, there are over 89,000 assets, including the buildings for utilities. And the roadway has over 47,000 uh assets with streets broken down by segments associated with the pavement pavement management program, which are similar to sizes of the of a block. The cost for streets only cover the top pavement and doesn't include the substructure or cost to strengthen or expand the roadways. This comprehensive database forms the foundation for documenting the assets we own and manage. Understanding the current state of our infrastructure and planning for our future needs. So let's review a simple asset like street signs to see how the signs work process works. There are over 13,454 signs in the city. The street signs were not in their existing system. So every single sign was visited. We mapped them with using GPS locations, captured the signs type and description, took a photo and assessed its condition. The Iris software provides a good graphical interface to display the locations and overall conditions, making it easy to locate the areas of concerns and pull up a photo to actually see what it is that looked like. What is that asset? The condition of each as each sign was assessed using a simple one to five

scale where new and excellent was rated as five and poor as one. A sign a sign rated as new or excellent meant it had been recently installed with a bright reflective surface and no action needed. A very good rating meant the sign had been in place for some time but still holds reflectivity well. So again, no action was required. A sign rated as good showed some signs of wear, maybe some fading or light scratches, but it was still reflective enough to function properly. Those simple needs will need to be monitored over time. When the sign was rated fair, it was noticeably dull, scratched, and harder to see at night because the reflectivity was starting to fail. These are the signs that we plan to replace the in the near future. And finally, once it reached a poor and failed sign, it was hard to read, faded, barely legible, or had little to no reflectivity. Those required immediately replacement. As with most assets, these signs followed the standard decay curve, where the condition of the asset fails quickly toward the end of its service life. Of the over 13,000 signs, we had identified 650 signs that are in poor condition and need to be replaced. These signs show as red dots on the map, making it easy for us to see where the signs need to be replaced and identified. Having a picture and a location really helps us be able to concentrate our efforts and know what we need to be doing. Let's talk a little bit and walk you through how the life cycle cost is calculated using the standard 35 mph sign um regulatory signs which speed limit sign is and then we identify the coding for it as R2-1 what the expected life of it is 10 years

cost the city based off of city's data $139 to make and install the sign and then we start looking at what a 20-year uh horizon will look like and we calculate what is the replacement activities since it replaces every 10 years. We see where it's at in the cycle and start anticipating where those items go. So now we take that and calculate it for all the signs that we just inventoried for that and you'll see the cyclic nature of signs replacing based on the typical age of those signs. Under a limited budget, we can start to prioritize based on a risk approach the most critical signs to replace. And this is when we start looking at we should be replacing regulatory signs uh first followed by warning signs, guide signs, andformational signs. This risk based assessment is what we're going to be coming back in February and discussing more at. So let's talk on the general fund assets. These includes buildings, parks, trails, roadways, fleets, and our storm water infrastructure and public art. Stormwater infrastructure, although is an enterprise fund, is supported by the general fund at this time. When we look at the overall replacement cost for our general fund assets, the numbers are substantial. Buildings total 170 million. Parks and trails are 150 million. And roadways are the largest category at 2.1 billion. Fleet assets come in at 45 million and storm water infrastructure totals 1.8 billion. It's important to understand that these costs reflect replacement in kind only. That is we replace it exactly what it is right now. They do not account for any type of improvements or enhancements to those assets. As of 2025, I'm happy to report that over 90% of our general fund assets are

in good or better condition. However, about 10% of our assets are in the poor to fair condition, which equates to over 120 million of asset replacement needs. For buildings, about 90% of our assets are in good or better condition. However, remaining 10% are in fair or poor condition with a total replacement cost of approximately 38 million. Similarly, for parks, only about 6% of our assets are in poor or fair condition equates roughly to 7 million. For roadways and traffic signs, only about 6% of our assets are in poor to fair condition, which equates to approximately 53 million. For streets, we really want to maintain the current PCI, which will require a higher level expenditures to maintain the current PCI. For storm water assets, less than 2% are in fair to poor condition. However, the confidence level of this data is very low and needs improvement. As we implement the storm water management plan, we'll expect to gain much better information on the current conditions of these assets which will then be updated in the system and allow us to provide more accurate and representative assessments of the future. Unfortunately, the situation starts is different when we start looking at our fleet assets. As you can see on the graph, nearly 50% of the fleet assets are in fair to poor condition. This means many vehicles were are well past their intended useful life, which leads to increased maintenance cost in a backlog of work just keeping them operational. Looking more closely at it, the fire department vehicles have about 34% in fair or poor condition, while police vehicles are around 45% in fair or poor conditions. Fire and police vehicles have a high criticality score and shorter replacement cycles due to the need to be dependable in emergency

situations. With long lead times with some equipment taking over two years to receive, maintenance demands and costs will escalate over the next few years with having to make investments on parts that won't necessarily extend the life of the asset, like replacing a transmission while you're waiting for the vehicle replacement. So let's take a look a little bit at the buildings because as of 2025 about 20 10% of the building assets are in fair to poor condition. However, if we do not fund any replacements of assets, the condition will deteriorate significantly over time. So on this time lapse video, you'll see how the condition changes over the next 10 years if we don't make any investments into our buildings. And after 10 years, 62% of the building assets would fall into a poor condition and 20 21% would be in a fair condition by the 10th year. So this is if we don't make any type of investment in our facilities, how quickly over 10 years can the condition changes and this is part of it is because of when these things assets were built and we're approaching the end of these life cycles of our facilities. But let's take about you know we spend money on our buildings. So let's take a look at it. Assuming an annual budget for building and asset replacements at 5 million, analysis can be ran to compare the budget against the forecasted replacement needs. So looking at it over the next 10 years, the analysis shows that by the 10th year, we will have a work backlog of over $36 million in our buildings. By work backlog, I mean assets that should have been replaced but haven't been. As you can see from the color-coded chart, many of the highest risk assets shown in red and yellow are below the bold black line, which represents where our budget would be. Not and this means that assets that should be replaced that have reached the end of their service life period, there is insufficient funding to meet that

risk, that demand, and that adds significant risk to the city. Here's a 10-year replacement projection for all of the general fund assets. The analysis indicates indicates that on average we will need about 63 million per year over the next 10 years to sustain the delivery of the current service levels. As you can see, we're starting to enter into a peak that comes with it. As with these assets, they do come with waves based on when the assets came into service. If we take a longer projection and look at this, the wave is more noticeable. And at the 20-year planning horizon, the annual average asset replacement increases from 63 million to 70 million per year. And you will see that we have a rise in 28, a rise in the 33, and a rise in 24. So we can get the cyclic nature of these assets that come in. So taking these averages are just averaging the peaks of everything. The three different planning horizon scenarios for general fund assets were reviewed. Over a five-year look, the annual needs is approximately 70 million reflective of that first peak. But as we stretch it out over the 10 years, it decreases on average to 63 million per year. And over the 20 years again, it rised roughly to the 70.2 million. Now, these calculations assumes uh an estimated 4% annual inflation on our cost. The slight dip in the 10-year outlook is due to the cyclic pattern of the city's development and did not pick up the larger wave that we saw in the 2040. So if you look at the historical asset installation profile, you'll notice that roughly every 10 years, new development occurred resulting in that increased number of assets. Based on the 10-year projection, the annual funding gap is $44 million every

year, equating to about a 232% underfunding. The current general fund asset replacement budget based on the review of the CIP program and repair is about 19 million per year. This accounts for funding that goes directly to asset replacements and does not include the funds spent on maintenance or enhancements and expansion projects. However, this scenario analysis shows that we need approximately 63 million per year to replace all the assets projected to require replacements over the next 10 years. Our prior staff estimate was close around 52 million. This table summarizes the assets replacements yearly based on the 5, 10, and 20 years for the general fund categories. This calculation is like to like and does not incorporate again the enhancements or improvements that may be triggered with this. In short, you can see that facilities are needing 14.8 million, parks need 10.2 million, roadways will require 26.4 million, fleet requires 4.5, storm water uh with majority of those in c cost and police and fire vehicles. Storm requires three million. However, this cost may be adjusted once we complete that management plans. And again, these are average average yearly costs that we should be spending towards these asset categories. Looking at both the general and enterprise funds based on the 10-year planning horizon with the same inflation rate of 4%, we see the funding gap is approximately 83%. based on the s water and sewer rates that um are approved to match the 20-year CIP plans. We still have our $63 million um fund need and addition of the $ 34 million for the enterprises, but again, it assumes the water and sewer

enterprises are funded at the rates. So, the water rates have already been approved at those levels and the sewer rates um we are forthcoming for that. What we've presented today provides a theoretical view of replacing all the assets at the end of their useful uh life or when their condition reaches poor. Given limited budgets and resources, we need to prioritize and develop a strategic plan to address the funding gap. In the next phase, we'll use a riskbased approach to determine which assets should be replaced first. We'll also provide additional financial analysis including budget scenario modeling and funding balance assessments and report back to the council for direction. Also during this phase, the asset management information system will be fully implemented and integrated and the GIS and Mainstar and Iris will all be working together as we and staff will be trained on how to use that system. This will allow us to maintain the dayto-day updates on asset conditions and future budget needs. That concludes my phase three has begun with prioritization through scenario analysis during the winter months and we hope to come back to council in February with the integration um and we'll start going through the scenario analysis and conduct workshops with the council to review budget priorities and evaluate different financial scenarios. This information will be used to develop a long-term CIP and make updates to the five-year CIP program through the midterm process. Thank you. That concludes my presentation.

Thank you very much. Uh so for my colleagues, this is anformational item. So what I was uh if agreeable with everyone, I was going to go ahead and open up public comment now and then we'll just go through it where we can ask questions and comments at the same time if no one objects. Seeing none. Okay. So we're going to go ahead and open up public comment for item number 19. If you would like to speak on uh the asset management plan, please fill out a blue speaker card. Okay. Okay, if you'd like to speak, please approach the the podium. Hearing and seeing none, we'll close public comment and bring it back to the council. Uh, vice mayor, I know how you like asset management plans, so you're starting us off if you don't mind.

I don't mind. Thank you very much. And yes, I am a big fan of asset management plans and so you mentioned this is a wonderful gift for the council. I agree and I accept it in that spirit. Um, the completion of phase two is a very important milestone. it it sets us up for the very important uh tasks that come next based on the completion of uh phase two. So that's a fantastic ac accomplishment uh in my mind um to get to this point. 200,000 physical assets owned by the city um and with a with an asset management plan that's computerized like this plus two very important um other aspects are predictive tools and planning tools. I mean so the value is very very high um and uh so moving us from um you know reactive decision- making for example when when there are emergencies um to more of a strategic and evidencebased decision- making. Um so I wanted to ask what what is typically the effect on life cycle costs you know the financial value um that is observed when implementing an asset management plan um and and what can you say about life cycle costs when they're managed in this way? Um, as we now have more data and the ability to update our data, um, and we get to develop moving from our industry standards to our own data to develop more accurate information on life cycle costs. So, as we built this program on our life cycle costing, uh, where we didn't where we had gaps in information, we deferred defaulted back to industry

standards for this. But now that it's integrated with the system, our life cycle costing and and durations that we can get on our assets will be tracked and updated as we update our work orders and processes that we do with our our daily basis. And what this does is allows over time as we collect this more data to have more accurate information to our actual needs of our systems. So this provides a deeper level of uh our abilities to control our cost and track our cost.

Okay. And um because so many things uh so many decisions that are made are repair versus replace, I would imagine that this tool will enable um us to optimize that kind of decision, you know, based on the predictive nature of the of the tool. um knowing that uh we can optimize those kinds of decisions is there a uh you know any any expected extension of asset life in some cases?

Yeah. So I mean as a standard practice right as assets start to reach the end of their their life cycles before we just go buy a new car or different things like that. We go through a process of doing the analysis and detailed inspections for those items. And if we do find that there's more life that's uh involved with it, the system easily allows us to make an adjustments to that to increase that life. And furthermore, as we increase more assets and say we move for say, hey, this bu this vehicle instead of seven years, we can get nine years out of this, it learns from that and we'll start making those adjustments for the other assets. So that's one of the things that why we like this software so much is it has predictive modeling that goes into it to start adjusting our own things. So again, the more data that we put in it, the longer that we use it, the better our numbers will get.

Okay? And so we could expect to see a significant reduction perhaps in long-term uh capital and maintenance costs or the other way. Well, I think or short term, you mean?

I think what what this allows us to do is to really start looking at everything more bigger picture, right? So you know it when we have a bigger structure that is made of a lot of smaller assets we can usually use this software to do an analysis to say wait a minute you know do we do this one replacement that may be expensive or are we starting to see in the next five years or 10 years of this asset a lot of assets starting to reach the end of their life cycle and it's now triggering us to say maybe isn't smart for us to make all these repairs and we need to start preparing for doing replacement of the entire structure, right? This could be replacement of the entire building, the pump station, or what other assets that we have beforehand. Being in a reactive state, you're not looking or or anticipating when those additional failures were go. You're just like, "Oh, the pump failed. Let me go replace that." Now, we can start looking at this and do the analysis to say, "Wait a minute. before we make this major investment on this repair, should be we be starting to look at what are we doing because we have more coming into that and that allows us to make more educated decisions. Maybe we will just rebuild the pump knowing that that pump is going to be, you know, the whole building and everything is getting going to be triggering for replacements versus buying a brand new one

just because we know that we don't need to extend that for another 20 years, right? We only need to get another 15 years out of this. This makes us to have make us have smarter decisions because we have the information now to be able to do that and more importantly in one place that's easy to graphically pull it together, click on a few items and run things for groupings of areas to do the analysis. Okay. I would think um that capability would also allow for better capital planning and budgeting. um for example, multi-year forecasts and preventing the kind of budget spikes uh like the one that shows in 2028 and uh could you opine on that and could you uh maybe look at 2028 and tell us how this process these tools might help us uh smooth that out and you approach that you resolve that spike better. Yeah, I think that part of what these tools do is we can dive right into what those assets are for the the 2028 and that's when we have to go through and look at the criticality of those assets and help identify which ones are better targets to delay uh and postpone to help with that smoothing if as budget needs come come into there. So you'll be able to see how all what are all those assets and then through the risk scoring that goes with it helps us understand which ones are higher priorities for us to do and which ones are not as well as we can then also look at some of that data saying okay I've decided that we need to defer this one because we don't have sufficient funding right uh what does our analysis state for that what are we seeing for our other assets that are similar to that um for us to be able to make those educated decisions and recommendations for that.

Okay. Yeah. And you mentioned um risk reduction there. Um and there uh ultimately you know several ways in which risks can be reduced um and not just from um lower exposure to infrastructure failures but uh public sa there are public safety uh aspects to that as well and also legal aspects. Um so would you agree that there are u potential reductions in risk for for those as well? Definitely because I mean what we what this tool does help us do um is defined where are those risks right you know we want to make sure that we're replacing you know those those mandatory signs right the regulatory signs before

before we have to go out and do theformational signs and this helps us identify like before we make that decision right we can go wait a minute let's not spend our entire budget on theseformational signs because I have regulatory signs that are coming up next, you know, anticipated next year and maybe we need to make sure that, you know, we're appropriately budgeting for that. So, it it really helps us with those decisionary points. So, would you uh also say that um this helps us to um you have fewer emergency um expenditures over time.

The goal is exactly that, right? that we're going to become proactive at these replacements instead of waiting it for for failure because every time that you have to wait for failure, your cost expedites, right? You're rushing to get parts. You're paying for

uh you know, you're paying you got to go, you know, say we need a vehicle, right? We have to go lease that vehicle while the vehicle is sitting in the shop um to still meet that level of services. Um so there it is important uh for us to be able to proactively uh prepare for this and not pay those absorbent costs to deal with it in an emergency fashion. the, you know, the more that we can stay on track of beating the the life cycle cost, it means the most efficient way of utilizing our money, right? Um, as as you extend out past that service life, your maintenance cost just increases. And what that does is you're pulling money away from your replacement money and putting it into your repair. And those repairs don't necessarily extend the asset life. You know, it's like taking a take an idea of a police cruiser, right? And it you have to go replace the transmission, right? Because you don't your next vehicle isn't here or you haven't you haven't purchased that yet. But the rest of the vehicle, the engines getting the hours on the engine uh are are climbing on there and other items uh and the suspension and different items like that are all telling you this vehicle needs replacements. But now because we delayed and now the transmission is out, we have to go rush go get the transmission replaced. We'll never capture the full value of that transmission, brand new transmission that we put in that vehicle because we'll still have to retire out that old police cruiser, right? Long before we capture that value of that repair that we put into that. So, we lose that efficiency of our dollar.

And so, again, this program helps us to target making those replacements when it's most economically viable for us to to run our systems. But that's great if you have all the money in the world to do that. We don't. And so this helps us make those decisions on where do we have to make the prioritiz priority for that for our community. Just it's a tool.

So I I would I would think, you know, if we had all the money in the world, we could respond to you all the complaints that are made about our assets um you know being in, you know, poor repair or whatever the complaint might be. Um I would expect that with this system your work orders could be based on you know the risk and the criticality of the work and is that a benefit that you're expecting? Uh how much do we currently you do based on complaints versus uh full consideration? I mean I we have good you know we do maintenance programs right and our work orders do come up to try to stay on top of of of items of work. Um but it is

you know what this allows us to do is hopefully prepare better for that when we talk about hey assets are starting to reach the end of their life and we want to go out and do an inspection of them to say do we need to plan for those replacements. This now gives us the analysis and the tools to give the list to our staff to say, "Hey, this roof is getting close to the end of their life. Let's get out there and let's do an inspection on it or let's do a detailed inspection of it to make sure that we are getting the details. All right, is this do we get another two years out of this? Do we get another five years out of this?" Or, you know, it is time it's time for this. We got to get that to be replaced beforehand. You know, current sometimes we wait till the rain starts coming into the roof. It's not ideal, you know, but this allows us to be more proactive at that to say, let's go out there, let's go do those inspections uh for that and say make a good judgment call on it. If we got to get a roofing expert to come out there to help with us, those are the types of things that we can start doing proactively and know what those those items are. Now we can make a list of those items instead of being reactive of hey uh it rained and now we have water coming in.

Right. Okay. And um as far as institutional knowledge goes has a lot of this data does it currently exist um maybe in various parts of the organization um files and spreadsheets and maybe even just the heads of the employees uh and and how will that help? Not anymore. We have a program called Iris that captured that. And so that was the whole point of this process is to take all these various Excel sheets and miscellaneous asset management programs that are ran through different divisions and departments and put it in one place.

But one of the things that we really like about this is we're also leveraging not telling them that you're going to have to go out and do your program and this program. We've worked where we can and we've I think resolved majority of these issues where Kauga will go software the Iris software will actually interface with our primary software programs that we use for our maintenance and interface and to talk with them directly because our goal is we don't want to continually burden the staff uh to keep on doing this because when you do that if somebody has to do it in this program and then put it in the other program the data goes stale really quick, right? And so one that is part of the selection that we did do for this is because they go through and do these interfaces to make sure that these different asset categories and programs and other softwares are integrated with this and we have a central point. We pulled all those old spreadsheets that are on everyone's desktops for how they've been managing it and put it into one place and that is an invaluable tool to be able to go into one spot and see everything.

Yeah. Yeah. You mentioned integration and uh yeah that's the key word and you know enables also transparency in the data as well. So big big win there. Um so so um overall for cities uh how would you say this results in better governance if it does I can honestly say the more information you have the better you can govern. um you know, it's going to be able to give you the tools and uh that your staff needs to give you better uh abilities to make better decisions, right? We're going to present to you a a higher level of confidence of information. Um and and it's backed all the way down to uh all the way down to a smaller asset level built all the way up and and there brings a lot of confidence in the numbers um that not all organizations have and with that more detailed information that abilities it gives you guys better um better information to make decisions.

Yeah. Yeah. Yeah. It sure would. um and also aligns um what our operations folks do with the public goals and the goals of the council, the overall goals of the city. Um uh won't won't go on too much longer here, but I just wanted to um highlight um you know the value of a computerized asset management database, you know, uh which you've just enumerated very very well. Um just a short summary without asset management um you have reactive maintenance rather than predictive. You have budget shocks which we all know about. Um and sometimes there can be priorities that are driven by um you know forces that are not necessarily in in in keeping with the um the best running of the organization. Um, so lower long-term spending, risk based decisions, predictable costs, and public trust and transparency. Um, those those are extremely valuable um attributes that uh this asset management plan will result in. I do wanted to just you know having having said that the numbers that you're showing here are the types of things that an asset management plan surfaces so that and surfaces early so because you know bad news early is good. So we we want to know as early as possible about what's coming down the road and yeah the numbers are sobering the amount of of a backlog um in work deferred maintenance plus the

uh predicted future replacement needs and uh capital improvement needs um you know per year average over the next 10 years are uh it's a significant problem that we're going to need to address. Um, I've part of the reason I love asset management plans is because of um the ability to, you know, take everything into account that we were just talking about to make that kind of a planning decision. Um, because, you know, as a project manager, it's it's all about planning and, you know, the more you know, the more you can plan and the more accurate your plan will be. So, uh, let's see. Um, yeah, I think that's that's about all I have. Um, sorry I couldn't ask the representative from Kaunga more questions,

but you did a did a great job there, Adam. So, appreciate it and thank you. He's here kicking me underneath the table, keeping square, so don't you worry. All right. Thank you very much. Uh, Council Member Gatos, thank you. Comments and questions all in one.

All in one. Thank you. Um, how do you see this affecting, you know, you know, keeping in mind of how this was done or not done in the past, how do you see this affecting, you know, the amount of full-time employees your department needs going forward, if all of a sudden a lot of this gets automated, um, and you have things on a schedule of replacement, how do how do you see that affecting that issue? Yeah, I mean I think one of the things just similar to what we did in the for the 20-year CIP programs for the enterprise funds is as we increase our expenditure levels, the staffing levels need to increase to accommodate that. But on the flip side as well is if we are not making the replacement expenditure levels and not meeting those things, we know that there are costs for the repair components are going to increase which can impact staffing levels such as if we're not replacing our vehicles, then we're going to have more mechanic time that we need to do. This all together helps us understand what may be our impacts to our staffing levels based on what we can afford. And so it is a great tool that tells us both ways, right? As we increase the our expenditure limits, we may have to adjust staffing levels for that and we'll come back with that analysis next time. But on the on again on the other ends is if we can't meet these uh needs it also tells us that we need to prepare for more repair and then we'll have to do some analysis and what does that mean?

Let me ask a question a different way. How does this make us more efficient as an as an organization? Um what it does driving is making sure that we try to spend our money as wisely as possible and that is we're we're trying to get to the goal of spending at when we should be replacing it instead of spending more money on emergencies, more money on repairs that we're not getting the full value of those repair investment dollars that we put in there. So over time as we use this data to make smarter decisions our cost burden over the long term will go down because we know not to invest in things that where the whole asset is starting to fail or large groupings of that. So we can make better educated decisions that are going to reduce our cost. So having this program over time reduces our cost on how do we take care of our infrastructure. So, let's talk about the our sort of most costly failures that come unanticipated like water pipes breaking and sewer pipes breaking down and um storm water, you know, the things that have cost the city, you know, on an emergent basis hundreds of thousands or dollars or more on an emergent basis in the last 5 years or so. How is this plan going to um assist in avoiding those types of things?

Well, really um what it does is start identifying those areas that we need to get out there and inspect, right? And to assess what those are and and get out there to start those replacements. Sure.

And so for a long time not having a comprehensive program that goes in there, it we found them by when it failed, right? We're being almost in the most reactive state that goes with this. Now we have the data to say, "Hey, these areas over here, um especially with our maintenance records, our tracking that it's definitely getting towards the end of its asset life. Let's get out there. Let's get some further inspection details. see what we can do uh with the money that we have to schedule those replacements to cut down the number of those emergencies or surprises.

Sir, I got you. I So, at the end when the software is incorporated, you come back to us in February and the the three systems are all aligned. Are are we at a point there where we're going to be able to, you know, someone from the city is going to be able to say, "All right, we now know we've inspected the water, we've inspected our sewer lines, we know which ones we haven't looked at in a long time, and is there going to be that level of, you know, data available so you can say, hey, you know, we're anticipating issues here. Let's go take a look and get ahead of it." And are you looking, you know, at every water line, at every sewer line, is that a part of this? I know we have kind of separate programs for that, but how does that all incorporate?

Yeah. So, um, you know, our our sewer system, we get to CCTV it, right? Put cameras through it, but it takes us seven years to get through that. And so, as that data comes in, we update those segments based on the physical field inspections that go with it. Water is a little bit more problematic because we can't put cameras on it, but we uh, you know, we do it more on an age based based on the materials and those types of items. And those items are already incorporated in that 20-year program. uh storm is unique too at Lake Sewer. We can run cameras through there and get better condition assessments, but we have never done that. And so part of of the storm water management plan is to do spot checks to see to check out statistically where are we at and we can once we get some of that information we may be making recommendations that we go out and TV 100% of that to really get a good condition based. But through that master planning process, it'll help us define what is that level that we go where our sewer system based on its age. You know, the analysis from our consultants and industry standards says seven years. Get through it every seven years. So you're capturing all those types of failures that can potentially can come up with that. That's the cycle. As our system ages, it could reduce down to five, particularly if we're not making those levels of investments in that infrastructure. We have to inspect it more. We have to keep our eyes on it. This will help us reduce those unexpected those emergency items and get ahead of it before the failure.

As far as like storm water, I mean, we've had situations where we've had very large storms that that exposed weaknesses in our storm water management. Um, are are you how is this you know, how was that managed prior to this? You know, you're saying they're going to go out and statistically look at places where we might be exposed, but how was that handled before? Did we just wait for it to fail and respond or was there somebody's job it was to do this? And how does that factor into the asset management program when you're talking about storm water movement?

So, uh, I'll answer your question about the I just want to jump in because I think we've the the information in the system is largely complete. We've we've done our assessment of the water system. Uh and we've done that comprehensively to go with our water rate work. Uh we've largely completed the work for our sewer system uh to to which we'll bring you sewer rates uh early in 2026 and it's based on that analysis. What we haven't looked at in a long time as a city possibly ever comprehensively is the storm water system. Uh and to your point, yes, the major storms did identify the the weaknesses in the system in a couple of different areas. Uh but I think um that that plan has not been fully initiated at this time. We were working through water, then sewer, then storm water. Three sort of unique utility areas for the city. Uh but really the the vehicle component, the facility component, uh those are those are complete in the system today. So, we have the data that you're looking for in your prior question about how things work. We're just the only area of real weakness right now I I believe is around the storm water system. Uh, and that work is planned. Just hasn't quite happened yet.

As far as let's you know, we've had some situations where water manes have broke and streets had to be torn up and replaced. How is how is this going to make us better at predicting that happening or is it

so we can use the the visualized tools and know by age base, right? And to help identify areas of of replacements. And so the idea is identifying how much money should we be spending to replace these to get them replaced before they fail. Right? This is a a budgeting predictive tool that does that we can help do that. And so we can help identify areas based on a heat mapping of of locations of where we can go for for it. There is testing and things that can be done. But um what this tool is it will do is say you have all these items that are in poor condition that need replacements and this is the budget and the tools that go through it. It can't say well this particular pipe over here. It's going to be these groupings of pipes are all in this have reached the end of their life cycle and comes up with that.

Yeah, go for it.

Thank you. Colin Chung, President Kauga, thank you. Just to address a couple items when you have a failure data and because we have the data foundation now, we could learn from that data. How old was that pipe? What's the size? What's the material? And based on that we have the characteristics around that we could uh interpolate in order to help us predict well that particular pipe we thought it was going to last 80 years but only got us 65 years. What are the pipes that within the city that have similar characteristics as that pipe and we should be able to identify where those are and try to highlight that. And what Iris would also provide you with is back on the condition assessment which were the pipes that were not conditioned assessed in the past five years. You'll identify that you know which ones were uh condition assessed it'll identify that which hydrants were flushed which valves were exercised you know within a couple of years. will be able to track all that information and highlight so that you know making better use of the limited resources that you have so your staff can go out and do the work where it counts and makes the biggest difference and with data we're always trying to focus on answering the core question of asset management which is are we making the right decision at the right time for the right reason at the right cost

and we'll have the uh the transparency and the data to you know back that up as much as we can.

Okay. my just to maybe get you guys to respond on on sort of water main breaks. You know, my understanding, you know, obviously a lot of those pipes that were put in were built in when the neighborhoods were developed and these are things that are, you know, neighborhoods were built here in say 50s, 60s, 60s,7s, lots of them. Um, and the pipes that were laid in the ground have a useful life and now it's 2025 and we were seeing water manes break. Um, you know, when essentially you have entire neighborhoods that contain water main pipes that are at the end of their useful life, you know, how is it not going to be that the the recommendation or is it going to be the recommendation that essentially we need to go in and dig up the middle of the street of entire neighborhoods to replace water pipes? And and if that's what we get told, that's fine. I understand that. But is there going to be some middle ground to that to say, hey, are this data and this asset management plan has identified this location where we think it's weak as opposed to a different location within the city that has similarly aged pipe. How is this going to identify if it can one problem area over another one?

That's a great question. And so each of the pipes, what we developed is what's called consequence of failure. So consequence of failure is a measure of impact of a failure of an asset and we measure that utilizing the triple bottom line characteristics of economic environment and social impact of that. So the the system of the pipe will identify based on the size and based on who's the beneficiary of that water the criticality is very different. So we did that for water pipe. We're doing that for all assets within the system. Even for parks, not all parks are the same. You have parks that are utilized for longer duration, more use of more people versus couple neighborhood pipes, then the assets, even if it's the same asset in the database, the criticality score or the consequence of failure score is different. so that the limited resource could be put into the the more consequential assets first in doing that.

Thank you. I appreciate that answer. The last kind of thoughts and things I'll share is you know we talk about this as an asset management plan but as we go through and you know started by identifying 200,000 assets within the city. I mean I I would call most of those liabilities rather than assets. Um it's you know it's called an asset but it's uh I don't know if typically we think we we think of it like an asset. So, I I'm going to suggest that when this data and I'll see if other however council members think about this, but when this data is given to us, I I I guess I see, you know, a water pipe that's underground in a neighborhood is different as an asset than, let's say, our IT building on the corner of Main Street and, you know, in Bernal, which is a building that is um not pleasant to work in, not in great condition,

uh hollowed floors, and that's something to me that as an asset is different than something buried. in the ground. And and you know, I know you have to count all of the brass fittings we have for every single water thing with the the at the operation center. Um but I'm going to sort of suggest and I hope there's support that when we go through and this information is is put to us um you know tracking what we have as far as assets that may need to be replaced and repaired and addressed is different than you know assets that we have that are that are you know of some potential future value as opposed to some potential future liability. So I hope that when this gets relayed to us in a comprehensive plan um that we you know we're getting this information as far as buildings are concerned and and and you know current values of the buildings whether we want to what it would take to replace it and bring it up or how much it would be worth to be sold because we're we may be forced with making difficult decisions moving forward regarding those things. So, I just want to suggest that, you know, maybe there's some subcategories of what truly is an asset and what truly is um you know, something critical to the infrastructure for the city, but in reality is more like a liability that we need to watch out for rather than an asset. So, um, you know, things with with market value to us in some way and things with which which, you know, could not be sold or moved to anybody else because it seems like, you know, like I said, those are liabilities rather than assets. But, um, I'd just be curious to see how, you know, that information is ultimately compiled to us. So, you know, we sort of know where, you know, the the city is as far as financial health and and, you know, assets that may um that may be um exchanged or or or moved or sold or bought or or however we could do that would be different than I, you know, other types of things. So, that's my my thoughts and I'll I'll seed my comments.

It turns liabilities into managed investments sometimes. Yeah. Yeah. Okay. Uh Mr. Chong, uh, if I may, since, uh, Council Member Gatos brought up something, I wanted to ask a question, maybe for the benefit of all of us, I'm going to just jump in real fast. Uh, when he talked about the two choices of the two water pipes and how you follow it, do you find from your experience that uh, staff has a or staff or council have a challenge actually relying on what the asset management program prioritizes because because it it still has to take person to prioritize them, right? So, the system's going to prioritize. But in that example, there's two water pipes and it says this one because of

critical. So, so we have to rely on the system, right? And if you don't follow it, then you get off the program, right? So, have you found that to be an issue? Well, all our results were checking back with staff and making sure that it makes sense. And then ultimately what we're trying to do is to replicate what's already in very experienced uh operators and also your maintenance staff's head from the years of experience. There are valves that are out there. They know that this is if you shut this down, the hospital's not getting the water, you know, and their val valves that are out there. if you shut it down. Maybe it's one house in the culde-sac, maybe not your house, Mr. Mayor, but that it's not as critical. It's very both important, but you know, when it times to come limited budget and limited resource, we have to make a transparent decision that we decided to replace that one segment over the other on there. And it is a continuous improvement process. Right now we've embedded the data foundation and then we deploy the logic for us to help identify which assets are more critical than the other. But I think it's an on you know as Adam said it's a living document that as we go through the data every iteration will bring us greater confidence and improve the output of the data that you will be utilizing to help make your decisions on there. And you know as we embark on this journey, it is a long and strenuous journey that we will go in but it is a journey that allows you to start being proactive like you said before instead of being reactive. And just to add as a thought, you know, I think we mentioned that many of these pipes that we have built in 1960s, 1970s as a whole as a

civil engineer and as an infrastructure managers, what we were always taught was to develop and build. And you know if you look at the cyclical development nature of United States as Adam kind of alluded to post World War II boom there was so much infrastructure that got built and then there's a quiet time another recession comes up and then there's a huge amount of infrastructure that gets built but during that time we focused on developing because the population was increasing and a lot of these assets steel concrete last very long time but now We're in a transition where the city's pretty much built out in many of the cities. The population somewhat stabilized. So we have to change our thought process from developing to more the management. And that's why, you know, I applaud your decisions to utilize this database approach to help us figure out what's coming up in the future so that we could plan ahead, we could be prepared. Is that exactly, you know, $60 million that we need next year? Perhaps, you know, there's some, you know, uh, leeway on that. However, we know there's a high significant amount of budget that's need and we need time to help prepare for that. And I think that's sort of the the change that's coming in terms of how we're managing our infrastructure in the future.

Thank you very much uh for indulging me and jumping in there. Uh, Council Member Tessa, you're uh next for comments and questions or questions and comments, please. Okay. Um overall are we um feeling kind of good that um I think I was fearful that we were going to see um more of our assets in poor condition. I we I think we look kind of good. Glass's not full. I like it.

Yeah. Well, I mean, not perfect and when we look at the dollars, that's a different question that I have. But are we are we pleased with um a better outcome than we had perhaps feared?

I think um you know, we maintain our our items, right? And I think what we're seeing is now our maintenance items are starting to grow. And that's why we we started presenting this this issue coming up. So yes, today today the current conditions you know we see a lot of green right except with some minor areas that go with it but at you know $4 billion of of asset values even at 2 3% it's still a large number and so on top of it you can see the wave is coming right this is what this asset management program says is you have a wave that's comes now if you have the money to pay for that wave it goes back down. But if you don't, it starts building. And so that backlog keeps on building and building and building. And that's why we want to get ahead of it and be proactive about it because with those uh deferments cost more, right? This is our most efficient ways to help do with some of that costing.

If I could, I mean, I'll answer your question really directly. Uh Council Member Ta, I was I was pleased with the result. I mean, I'll just I will just say that as your city manager me uh to to know that we had uh such a high percentage of overall assets. I think when you start to peel the onion and you start to look at the as you mentioned the size of the number, it's it is significant. But what we're trying to do now is uh to to Vice Mayor Nybert's point, we're we're trying to give you the news early so we can plan for it and and you know work that plan together over the next several years to make sure that this remains something that we can keep within our grasp or keep get our arms around rather than letting it continue to grow. So that's where we are tonight.

4% I think you're right. So, um, yeah, I think that there's a lot here that's really positive and listening to, um, a lot of the comments that have been asked, um, some really great questions. Um, this computerized asset management program, um, gives us better tools and information to make better decisions. um being more proactive than reactive, all this great stuff. Um does that mean that we're going to when we have a number of 63 million per year over the next 10 years? Um but the budget includes about 19 million annual leaving a significant gap between needs and available resources. But then I heard comments about um this being able to prioritize reduces our costs and helps us to balance what we can afford. So, are we going to be able to bridge some of that significant structural gap with this planning? And um I I guess I I want to ask that question, but then I also want to ask then if not, what are what are we looking at? I I I think we've all recognized that we don't have um a repair and replace um um reserve that we we've all been concerned about

that and we've got already real concerns about budget our budget deficit. So, will this allow us to take that 19 mill million that we annually and help it to um reduce that 63 million that might come along?

I'm going to I'm going to start and then I'm going to ask for some help and our finance directors here this evening as well. Um, we will be coming to you with this information uh in the spring and then the goal is to use it as part of our future budget discussions. In the near term, I do not expect to uh to yield significant savings with the information that we have. I expect us to be able to take the limited resources that we have and put them more effectively to the things that we need to uh and and sort of cover our bases while we make our longer term plans. Uh I would I would not anticipate significant savings be uh in the early years of this plan. I think the savings start to come and we get to medium and longer term when we're able to better deploy uh those funds. That's not to say that we won't be slightly more uh data driven and effective and efficient in the near term. I just I don't want to overpromise on where we are with uh a $19 million contribution up against a $63 million average need. I I I really do think though it will be eyes wide open for the community and for council about what we're actively trying to maintain and preserve and what we're saying we can't get to right now.

Okay. And and I guess the last thing that I'll say is the challenge is what Adam mentioned earlier. Every year that we don't hit those targets means a bigger snowball uh as that as that rolls up the road into the future. Right? It's just like if you, you know, you defer something on your home or your car, it usually doesn't get less less cost or less expensive when you do finally get to it if it doesn't create other issues for you in the meantime. Okay. Well, that's that's what I have for now. Thanks. Okay. Thank you, Council Member Aker.

So, I want to start off by saying nice work on the plan. Um I think it covers a lot of uh a lot of facets. Um I'm also a planner and believe that it's important to have have a structure in how you're going to move forward in regards to uh your assets and um I do have some concerns about about the asset management plan. Um, I think they're they're great tools. The question is is and I guess this is for uh uh Colin Chung is in your experience based upon your history. Do organizations have a hard time keeping these plans going? Because my experience in seeing when you bring in a new software, it's all great and everybody's on top of it at the beginning and then you see this basically your your falloff period where you know you get less and less people dealing with it. So we we did this great plan but you know 5 10 years down the road it's starting to peter out because folks aren't staying on top of it because it's only as strong as the people that are driving it.

Absolutely. Yeah. So, what does that look like in in your experience?

Well, I think uh this was the the concern uh and that was raised by Suchin and Adam and Tom is Colin, this better not be a static photo point in time. So, with your approval and direction with the implementation of the upgraded CMMS opportunity, what we're creating is a dynamic system. So every time your staff goes out and since we're on the topic of signs go changes a sign in one location in Iris when that work order is closed that work order will be recorded in Iris as replacement of that sign. The tenure kicks again and then the budget goes away until next 10 years and it's constantly updated. So your staff is going out making improvements, doing the work, doing the maintenance. And what we're trying to do is develop a system as they keep doing the work that they've been doing, automatically bring that data in to refresh this asset management plan day by day, week by week. So that the profile that you get every year is constantly changing. With that you can even start looking at with this investment that we made in the last year. How much of a difference did we actually make and what kind of improvement? Are we moving in the right direction or you know are we just kind of still treading water in that? So it will allow you to have information for you to have better understanding of the progress that you're making but also capture how those progress were made asset by asset along the way. So it will be a an automated dynamic system where the condition profile will change on a almost on a daily basis.

So it's not just a static database where folks have to constantly go back and search out what they're looking for otherwise the data is never found. No sir, I think Adam will put me in trouble for that. Okay. Council member, if I could follow up on that. Yeah. Uh if I may. So So I'm going to ask my staff uh or our city staff. Uh we have tested this. This isn't vapor where this is actually working. Correct. We have seen it work. I I want to know we have seen it work versus it is just a contractual work.

No, we we we are starting to see some of our databases starting to integrate because this is the the phase that we are these are the phase that we are in right now is now starting that data transfers back to our other assets program. So, um, we're doing the stitching work with with the Mainstar, but, uh, this work has been done before. Um, and that was part of the things that we looked into when we first made this selection. So, there's a lot of different asset management programs that came in through here and and one of the key selling points of why we picked this company was the ability for them to utilize our existing systems in place. Because when you have to change what somebody is doing or duplicate the work is when it fails the most. So if I have to go put my stuff in my work order system and put my stuff into uh an asset management program, it breaks down very quickly. And so we wanted to have a system that automatically communicates. And so part of the last time that we were in front of you was to give all those last minute details with Mainstar and Kaunga to be able to do that. They've done some of the handshaking components of it and now we're looking at taking the big database that we've built and now loading it into our CMS system. So, you know, we're we're really adding a lot of assets into our our CMS systems. Now we've re we've built a higher level of accuracy than we've ever had beforehand. And so that's what this whole process is now. We've worked through those getting the softwares to talk components. Now it's rolling that out.

Okay. So I'm going to I'm going to be very clear because you answered first with a no but then went in to explain it. So we have seen the data interacting or interfacing occurring. It is not just a contractual agreement. We have started to see it. We We know it will occur. Correct. Correct. We haven't done it with our main star system, which is our primary system, but we have seen it with some of our other systems already as that we're starting to do it. Okay.

Yes. If I could add to that, the GIS system has been improved tremendously. uh in fact to a point where all the uh the signs and the park assets they're all subinch accuracy of the location and this is the most accurate data that we collected by far of any city. So we've done this. So kudos to the uh the staff for making us do that. Okay. Thank you, Council Member Hiker. I just wanted to make sure it wasn't vaporware. So thank you.

It's all right. H how did we come up with the 4% uh inflation rate growth throughout the throughout the 10-year plan?

Yes. Well, thank you. So, the the 4% is ties back into a couple different items. one is it's consistent with the California construction cost indexing and since a lot of these items tie more directly relatable to that and then in addition it does is consistent with the city's long-term financial forecast which utilize 4 and a half to 5.1% for material supplies and services. So, um, you know, that's kind of where we kind of put the 4% inflationary items is looking at what have we used in some of our other modeling aspects as well as some of the industry standards to make that selection at 4%. Uh, the nice thing is within the software program, if we see changes in inflationary rates, it's an easy thing to make that adjustment to our rates. So, if we wanted to see what it is at 5.1% or we want to see it at 4%. Or if we want to if we have future modeling forecasting that says it goes up and it goes down similar to what's in our uh city's long-term financial forecasting, we can also make those adjustments into this program. So uh we will start aligning those items so that this model is is stays consistent with our long-term financial models so that we are all playing with the same variables that go in with it. Um that's part of our phase three where we are where we connect our financial components with this. So for the first start of it was we just put in as a blanket 4% across the the board and as we refine that data we may make adjustments to be more consistent with our long-term modeling.

So that number could be much higher or could be lower.

Again we want to use consistent with our finance departments and the numbers that they go with that. um for for the for today we tried to simplify things at that because it gets pretty complex about which items are 4% and which ones are are are different. But um the there is the power to make those adjustments in the software and the goal is to align those with with our finance department and use the same items. So when we are doing our other financial modeling we also pull that into here so that we're all talking the same. Okay. Um, and I guess this is another uh question for Mr. Chung is um, based upon your experience, how does the condition of the city of Pleasanton's assets compare with other cities that you've worked with that may be comparable to ours? I know every city's different and in different stages, but based upon your experience. Well, uh, I I think every city's managed a bit differently because the the level of service that the city aims to provide varies depending on the availability of budget. I think your city is beautiful and uh, you know, for more of the higher level city. I think it's very well managed and as indicated by the condition graph and also the age of the city, I think it's been managed very well. Uh there are some cities in other parts of America that would wish for the condition score that you guys got. Uh but they're in a different situation, you know, environmental situation, economic situation, and also sometimes social situation that makes it very difficult for them to to do that. But I think for California middle

cities, you're similar on par or in in good shape so far. Yeah,

that's your Christmas answer. I'm sorry. We think our city's beautiful also. It we we greatly enjoyed viewing and getting to learn the city. Thank you so much. Sorry, I'm go going through my list of questions because uh a lot of them you guys have already touched on, so I'm jumping through things here. Um why the why is the storm water replacement costs uh look so disparit from the other asset replacement costs? It's on uh the chart on page 365. Yeah, I think you're referencing, you know, why is it $1.8 8 billion, right? Um

the the reality is it's a significant infrastructure that most people don't understand. So underneath almost every lane mile that we have out there, we have a pipe, a manhole, drainage inlets that you see that gets plugged with leaves. Um these are everywhere. Uh and and so the cost is the the cost for us to go out there and dig it up and replace it. not upsize it, not making improvements to address the future flooding. This is going out there and replacing all those items. There's couple hundred miles of pipeline out in our streets and just is the same amount of of manholes that we have for our sewer system. But in addition to that, we also have the drainage inlets. And so it's an unseen liability um to some right that goes out through there. But this is a significant investment that has been made through development that goes through there that now we have to upkeep and maintain so that we can keep it functioning. But we're not we're not talking about that's we're looking at repair and replacement of that in a 10-year period. We're looking because the life cycle of that's got to be 60, 70, 100 years depending upon what it is and

the materials it was made out of.

That's that's exactly correct. Right. A lot of storm water systems, they're made of concrete and reinforced concrete and you know, you hope to get between 75 and 100 years for those items and services. I hate to break it to you, the city's getting that old uh based on when the developments took place and so uh you know we see that in a in a low condition assessment that we see right now because it's based on the age of the ad infrastructure. So that isn't going but it doesn't change the fact the sheer volume of of structures and length of pipe that we have um that it has significant cost that goes with it because our smallest pipe is generally 18 in. um you know a lot of them are 24 in 48 in they're much larger than a water line that maybe you know standard is 8 to 12 right or a sewer line similar that are go to 8 to 12 is our average sizings that go with it so it it just you know these things cost a lot more to go dig up in the middle of the street um to replace

so in this plan I'm anticipating that we're talking there will be as we move forward with it there'll be staffing recommend commendations to help facilitate this new process, which it's not going to be $63 million. It's going to be a lot more than 63 once we start adding in the staffing component to that as we start looking at how do we make this happen and and pay for it down the road. Um, so I guess my question is, is that is that an accurate statement that we haven't factored in staffing into to manage this into the $63 million calculation?

We have.

No, I mean this these these are replacement cost of replaceing kind, right? when we start talking about doing large replacements of items, that starts becoming capital. And that's when we start looking at are are we building it for our future, right? If we're going to replace the whole system, what is our future needs that are are necessary for this? And when we go back to rebuild it, let's build that. And that always drives cost, right? Um, you know, for our sto staying on storm water infrastructure, right? climate change is changing the storm events that we have and and the potential impacts with that. If we were to replace a whole subdivision because all the pipes are getting old with that, we would do it underneath the new analysis which may increase the size of pipes that are necessary for that which could drive up cost. But this is a budgeting tool to make sure that we can keep our current level of services.

And just so the answer is staffing is not completely factored into this. there will be expansion that goes with some of these projects. Uh but you you see that with the the capital budgets and you see us starting to budget for staff time associated with CIP work. Uh and so um I would anticipate the five-year CIP going forward to be uh more dialed in in terms of the scope and scale of it based on available resources and for us to be able to staff accordingly to deliver just like we are with the water program and the sewer program. Uh, I think the challenge really for us is that none of this is going to happen immediately. So, we're we're we're we're currently stretching our current resources and our current staffing levels with what we're currently putting into our CIP program. I don't anticipate things changing over the next three to three or four years. Uh, I think we're we're largely dealing with the dollars that we have, which means that it'll be the team that we have delivering at the scale that we can deliver at with the the investment that the council's putting into it. If the council triples the budget, we're going to need to talk about staffing. I but I'm I'm not anticipating that in the near term.

Okay. Thank you. I appreciate that. Um I do want to say that I am I am uh quite impressed uh that the city's general fund supported the general fund supported infrastructure is has a replacement value of over $4 billion. Um that's quite a bit and it's in overall good or great condition for the most part. Um that speaks volumes about the quality of work that our employees have put into maintaining and managing the city. Uh so kudos to you guys.

I can please your Okay. Uh thank you very much. Uh I have a couple of questions myself and I will start with u I I like council member Tessa Nikker have voiced. I uh am pleasantly surprised that 94% of our general fund assets are good or better and I think our community should be proud of it. It's not only a testament to kind of what we're doing tonight, but also all of the uh leadership we've had over years of our city. So, thank you very much. Um, let me go with some very specific questions um that I've got, if I may. Um, maintaining the system we've talked about, right? I I I used to audit uh software companies. I don't mean any bad intent by it, but seeing that it will work and integrate is just as essential as all the effort and energy we've put into it. Um, let me ask about some very specific ones. Where is the century house in this? And and will we bifurcate out assets that we know, I guess I'll I'll use a financial term, troubled assets, right? Troubled assets. So, I'm going to deem the Century House a troubled asset. Uh, just my personal opinion. Uh, so what do we like? Are we going to break that out? How how is staff looking at that? And I get it, right? because you're right now we're presenting the whole plan and the overall where we're going but there are very specific uh projects or assets that we know about.

Yeah. So I think that um you know one of our more difficult assets right to to to work with is facilities because they're made of so many different components and some components can fail and it doesn't close the building and others do. you take the AC unit out and we can't control the environment and all of a sudden the building closes. But, you know, if the carpet's super old and looks bad, well, it looks bad, but we can still walk on it, right? Um there's so many different um components that go into it when it comes to our facilities is why we recommended in the CIP program to fund a facility master plan, which will was going to take all this great data that we have, which typically is generated through a facility master plan. Now, we're going to take all that and it comes with the analysis. It allows us to quickly provide a facility master plan because the work to identify the conditions, to identify the states, the costing, all that work, which is the heavy work of a master planning process is already captured in this asset management program, which is great. Right? So, we've done that heavy leg work and now we can get into the analysis component of what do we do with our assets? How is it meeting our future goals, our levels of service, uh, and what should or shouldn't be done with particular items? And those fall into a master planning process of what do we do about all our facilities in general? And again, now we have the data, right? Normally you have to go out and spend a year getting all that data before they can start the analysis. Now we can just bring a consultant in to start the analysis. They'll gather still more data, but that data is about what is our needs as an organization for for use in space uh for and start answering some of those other questions that your asset management plan doesn't do. It'll tell

you when the ACs are going out, the carpets goes and all those types of things which helps them say what is the life of this building particular building and where it goes. In addition, we also are doing our ADA transition plan that's uh that's currently going on. That's going to also tell us what improvements do we need to do to meet to meet code regulations. That all feeds into our facility master plans that's taking place. And so that will help us make those educated decisions of do we have problem child facilities and then what do we need to do and it helps us craft a better uh discussion about what do we do about these? Is it worth those investments? Is it worth making investments in the century house or is there or would we be better off to meet those needs that used to be done in that facility in something different? That's what that master planning process goes where we go out and go through a full process that helps us develop those bigger questions and goes through there. Uh but the asset management program will just tell us help us with that base data of this is its current condition. This is when it should be replaced and and what goes with it.

You can tell I'm I'm waiting to decide which way to go on this. So, yes, city manager, we're going to need to look at all of our facilities and when what I think you'll see in our in our um in our financial discussion is we're going to have decisions to make early on about which assets we're going to continue to invest in and which ones we're not going to. And I think facilities and vehicles are two areas where we're going to need a lot of discussion with the council about what we're ready to say goodbye to or to stop investing in or to hold off on investment in and what we want to focus on.

Okay. Well, I'll I'll put a pin in this one, but uh Century House and 123, no, excuse me. Yeah. Uh 157 Maine uh are two I I I guess I'll just say I I would like to see how it's specifically ranked out, I guess. And maybe what I'm trying to ask staff about is, you know, before before we get a long list of items and it's, you know, doors and transmissions, right? There's still some grouping of a facility in a building that we should be very careful about investing in or we need to figure out a longer term strategy on. And that's what I guess I'm trying to figure it out. I'll put a pin there. We'll maybe talk about that in a future meeting. Let me ask another question. You talked about the example. Oh, I think it was council member um Gatos about the transmission versus the engine of a police car. Have we gotten that granular with this? That seems like it would be a bit too or more granular than I would expect for maintenance. And is that

that is not the level we went to. Correct. It it's not, but the the data is going to be there because of the work order systems. Right. I see. So, we could see a vehicle piling up work orders for various uh unexpected prevented maintenance repairs or something like that and that would start to identify a problem truck or vehicle.

Correct. We'll see be able to see the costing for that transmission tied to that assets and and the amount of times that we've been doing those repairs and that allow us to interpolate, you know, all right, oh my gosh, once they start reaching this age, we see so many instead of annual maintenances now we're having to do repairs on them and that will really enforces that life cycle age, right? That when we we make that determination, we'll have that that we can pull that history up all right there. Okay. Um, okay. I appreciate that. And then, uh, you know, I've seen other municipality, I'm going to go with firet trucks because it's on the vehicles that you've mentioned. I've seen a lot of municipalities that that appear on the face to be driving much older firet trucks than our LPFD. I mean, much older, right? Uh, wood ladders and and whatnot. Uh, so will you help eventually help us understand when we're talking about the aging fleet and the fire fleet what those assets are? Like it's difficult for me to and I'm on the JPA board along with council member Riker. We just had the meeting. So it's difficult for me to know what fire assets we have vehicle-wise that are really old given we've just bought the new tiller. We've got the new I can't remember what the the beast vehicles are. um wildland. Uh

so so what what asset in the fire you know I guess maybe sure if you know offhand but

well I mean we you know included in some of that cost is some that have already been ordered right so we've ordered uh two fire engine replacements um one of them was from 1991 and 2012 but these assets can take multiple years for delivery and so they're showing up in the you know failed conditions and because they are today right we're we're we're capturing that information now until the replacements are here. Um, that goes in there and and the elements that go through there. But we still have another fire engine from 2014 that needs replacement. And that costing at $1.5 million is significant, right? And and skews that, you know, we don't have that many fire trucks. So when you only have a we have a few of them out, it shows up and it shows up because they're high dollar values. Um, so we do have four to five main items that that are well past the the expected life services that are in that failed condition that goes through there. I mean, the good news is is is some of them we've our planning has started that process of that replacement planning that that will once they're here and they're they're in the fleet and the old ones are retired out. it'll dramatically change that just because our our number of assets are smaller in that particular category but and they have some high cost and so when we pay for those items they go down but that just once we pay for them that goes down in our you know what we have in our R&R reserve so we bring we're going to bring some of that analysis back in you know February when we take a look at our balances that go through there like how do we how do we started eating the $63 million uh items and what tools does the city have already in place to address some of that. This was looking at the need, right? Tonight was to help define

your long-term need, but we live in today, right? We have to live dayto day in our next year's budgets and our next fiveyear budgets and and in our in our programs. And so we hope to bring some clarity with that um using this data for us to make some smarter decisions in the near term.

Okay. Uh let me ask you this and the city manager t uh touched on it a little bit um is um I guess I'll I'll put it like this, right? When do we expect this reasonably expect this to help us with CIP prioritization? That's part one, right? So we'll start to be ranking. I know we already have a criteria we've adopted as a council to go through and limited dollars. So, so when is this going to be able to start to be impacting that? That's part one. And part two is, and maybe this is to your point, U, Adam, uh, we just had the budget presented with a lot of CIP carryover, right? So, when we have a lot of CIP carryover, we're not deploying the dollars we're already allocating to CIP. repairs and replacement costs go up and we're fighting inflation on the backside, right? So, we have a slight other problem. I guess that's going to come in February where we actually are deploying the allocated dollars that this council is giving to CIP that are still stuck in deployment, right? So, it's a two-part. I don't know if uh who wants to take it. So,

yeah. No, I can prioritization and and deployment of dollars.

Yeah. I mean, a deployment of our current capital program is is of of of non-restricted funds is progressing. Um, you every year we enhance and improve our our delivery and we're bringing in additional uh support and resources uh to make sure that we're we're meeting our our delivery goals. And so we have some money in the deferred maintenance CIP fund that was looking for this data on how to best utilize that those funds. And so we are we've always been wanting with the target goal at midterm to define the scope of what some of those expenditures are. Right? So, we we we set together this this money with with a broad scope of of projects and now we're going to have that top listing that goes through there and then we can help uh identify with those items.

The the midterm budget is when you're going to see

uh you're going to see us start to to use this tool because we'll we'll have come through the the spring discussion with you and by May we'll be able to start to adapt. if there's urgent or pressing needs. You'll hear about it at that discussion. So, that's that's a socialization and possibly a rep prioritization. We don't want to redo the budget at the midterm. Uh but it is an opportunity for us to check in and then really with the next two-year budget development. This this tool should be fully deployed for us with our capital needs and our five-year plan. And maybe I ask you, city manager, you know, so so I hear what uh Adam's mentioning about the CIP deployment, but I just I know that the I know that the financials we just reviewed showed a significant carry forward, right? Yeah.

So, uh I know there's a staffing element as we staff up to be able to deploy those dollars, but you know, if we keep putting money and we're into CIP, the dollar amount, and you know, we have 6.8 eight in year one, but we're not able to get that into the communities, improve roadways or whatnot. We're not we're having a a disconnect here. So,

I understand the concern and uh our public works director, our city engineer are working on, as Adam mentioned, uh different deployment models to make sure that we're evolving. The other piece to this though is that we are a payo city. Uh we we need to save money to be able to make the larger investments. That is how we've done business. So, for example, um you know, significant costs around uh a new firetruck, a $2 million investment. We might be putting aside half a million dollars, half a million dollars, half a million dollars, half million to get to that point to then four years from now be able to to purchase that that particular vehicle. So

yeah, and if I may, I'm I'm thinking West Lositus. Our community continues to hear us talk about prioritization and frankly two mayors ago talked about it. So

yeah, it'll start construction this summer, but it's the same thing. It took it took a good I I'll I'll put it as at a decade, but it's probably been at least a at least the last six years where we've really been putting a lot of money and we've been collecting grant money and and other contributions to make sure we can pull that off to be able to do it. So, I I understand the frustration around seeing big dollar amounts roll forward. There are areas where we can do better. I I'll acknowledge that very clearly with the council. We will do better to deploy where we can in the near term, but there are also because of how we fund projects, there will be money that has to roll forward yeartoear. And we'll try to be clearer about where we're doing a uh you know where we're doing that work to get dollars into the ground and where we're saving it for a purpose in the future.

Well, yeah, I understand we're all on that same page. Okay. And then my kind of my other question is uh you know, from from where I sit and I think I could maybe lean on the vice mayor on this as well. You know, I would love our public to be able to see this data if they so wanted, right? A website or some way for them to be able to interact so they could see it. You know, I I know we're doing back the badge for our police department. And if they saw the overall asset conditions of of what's there, right? not doesn't have to be as complicated as the operational dollars and the allocation of the budgets, but if they knew what assets are in what condition based on this or they're able to go on a website and do it like are is there or a task force or uh a community group or an education system. Is there any plans for any of that

coming soon? Uh so we we'll be talking with the council in the spring about the budget development process and this will be a big part of it. uh the capital component is something that will play a more predominant role in our budget going forward because we'll have these numbers that we know we're up against to to be able to roll it out. So, uh I don't have a plan for a website today. I don't think anyone on staff is we're not quite there yet because we haven't quite completed the the technical work. Um I don't know if Colin wants to add to that, but um but definitely the budget development work that we do will need to have this as a strong component. If you could recall Adam's uh presentation, one of the slides and the project approach, the last item was communication and uh Mr. Mayor that we would like to also make this data be available for the public's knowledge and consumption on this. So, uh Tom is working with us to develop uh a communication material but also the results of the uh the Iris analysis as part of a dashboard could be integrated into uh a website perhaps that will provide you know real-time view of you know what's the state of the infrastructure for the city of Pleasant

and and uh I will not dictate how it goes at all but I do know public comment that I received from constituents was if you look at the facilities, it's an identified area of need in the more red sections and you were to take off uh Sentry House, which is why I kind of asked on that and 157 Maine, how does that alter the overall picture of the rest of the facilities of the city? Right. And I think, you know, we have a pretty astute community that would love to work in that. So, I I'll leave it there. We don't need to go from there. Um, I don't know if I have terribly much more comments other than I really do appreciate it. It's turned into a project that I personally, like the vice mayor said, um, think is the backbone for a lot of really good in our future. Really laying out the, um, the non flashy but essential work that we do here for the city to deliver services for our residents. So, I truly appreciate it. Um, why don't we just go around again real quickly? We've obviously spent a lot of time. If anyone has any closing quick comments, the same order. Vice Mayor, any comments? Um not a whole lot just uh a great big thank you again for undertaking this effort and uh everything that um Mr. Chun has contributed, everything our staff has contributed. I know it's a monumental effort um and as I mentioned before there a whole range of um value propositions in this a lot of benefits that can acrue um I won't repeat them but there are a lot and uh um yeah I expect it to be of great use in the future. Thank you.

Thank you. Council member Gatos any comments? Um just one final comment just to reiterate that when it is you know put to us in some sort of a ending document or file that you know we we have a listing of assets with assigned values of you know distinguished by sort of categories. So that's all. Thank you. Okay. Uh council member Ta.

Um I yeah I think I'm Gosh. Um just I it really was um a a gift of information. I think it's a a great um tool going forward. So, thank you for your work. Okay. Council member Reker, I just wanted to thank you again for your work on this.

Yeah, I'll just um highlight it is I I found it very uh glass uh half full. Yeah, half full. uh 94% uh good, very good or excellent in our general fund uh maintained assets. Um I believe we're being pretty prudent with the taxpayer money by implementing this now so that we can rank uh based on how critical something is and obviously uh um the condition of it so that we can be as prudent as possible with limited resources. Everyone's got limited resources. That's always how it is. Um and then just maintaining the service levels in the city as our residents expect us to do. So great appreciation for this report and I'm sure we will appreciate the followup uh in next spring. So stay tuned. All right, thank you very much. Uh it is 9:00. We've been out of a bit so we're going to take a quick 5m minute recess uh before we begin. We have two remaining items for everyone. Uh item number 20, which is the item previously known as item number nine and item 21, the item previously known as item one. We'll be right back. Thank you.

Welcome back. We're uh continuing our December 16, 2025 council meeting. It is 9:04 p.m. and we are proceeding with item number 20, which was previously known as item number nine. Council member Iker, you pulled the item. Uh would you like to start us off? Would you like a staff report or questions? Uh actually I I pulled it only because you know the uh the uh I don't have a problem with the content of of this uh council report where I would thought we needed a more of a council discussion was in the scope of the policy decision that's raised in here which is to raise the city manager signing authority from 100,000 to 200,000. Um, you know, my concern is the the transparency for council and the community on on that gap that's in there. And uh I had a prior meeting with the uh manager today and he may have a solution to help help me get over my concern with that. But I figured we ought to at least have the conversation uh in a public meeting.

Okay. Okay. Uh be maybe what we do is let me just see if there's questions. Let me then invite public comment and then we can go from there. Perfect. Okay. So with that, are there any additional questions of item number 20, previously known as item number nine? Yeah. No questions. No. Nope. Okay. Uh I'm going to open up for public comment. If you would like to speak on item nine, please approach the podium at this time. Hearing none. Seeing none, we'll close public comment and bring it back. Uh and so city manager, I think you were do you want to bridge this? do not um I

I'll give it a shot. And then our finance director, Susan Shay, is here as well and has some context that might be relevant. But what I would say is the the intent here was to to clean up a few things. We had some emergency situations uh that we didn't really address in our procurement policy. We hadn't we hadn't updated it in a more comprehensive way in a while. Uh there's about 50 agenda reports per year on average that come forward with between 100,000 and 200,000 uh dollars. Those are very rarely uh I can't recall one that's been discussed in any detail. Uh they're usually on consent. And so the goal here was to to be a little bit more efficient, especially with our finance department's limited staff resource time. Uh we also noticed that uh some cities around us had shifted their uh city manager signing authority up to be able to um to be more efficient and um and also to address just the the rising cost of the things that we uh enter into contracts for. So, the solution uh that council member Iker and I I don't think it's talking out of school uh discussed is uh like a a a regular report where it's a quarterly report or something like that that covers those contracts between 100,000 and $200,000 that would go directly to the city council, not as part of an agendaized item just to keep a flow of information and a transparency around the the work that's being done. uh that uh that report should be a lot more efficient than 50 to 60 staff reports per year uh and would still help us. And I don't know if our our finance director Susan Shay would like to add to that or um or modify any of those uh points, but that's that's the solution that we were talking about.

Yeah, I just want to add a little more context to what Jerry just mentioned. Um, in terms of other cities in the Chai Valley, uh, like, uh, Dublin, Livermore, and, uh, and San Leone, currently, they don't report out contracts to the city council, uh, if they're within staff's uh, signing authority. So, I just want to share with the council. Okay. Uh, council member Aker, um, does that, uh, suggestion that was made by the city manager uh, satisfy you? I I think it does. Yes. Okay. Uh, do we have additional? Would that be a a formal formality or would that just be a policy added on? We don't need that in the motion, per se. Uh, if you're comfortable not, we'll we'll just put it on a quarterly and uh and get you an update on the contracts that get signed within those those dollar amounts.

Okay. With that, I'll make a motion to approve it. I'll second. Okay. We have a motion made and seconded. Any additional comments on item 20 before we take a vote? Okay. I'll just mention um I have seen exactly as reported out by the city manager uh in a couple of these JPAs that I sit on, they are all evaluating this. Uh some of them have uh altered the actual amount and some of them have done the report out. So I don't think it uh that's why it didn't uh flag out. Okay, we are voting electronically I believe, right, city clerk? Motion made and seconded. All right, please lock in your votes. Still throws me off. Final answer. Yeah, final answer.

The motion passes unanimously. Thank you. Okay, thank you very much. That concludes item number 20, formerly known as item nine. I just like saying that we're going to move to item 21, formerly known as item one. Council member Tessa, you pulled this. Would you like to let us know?

Yes. I just wanted to say that I'm um I appreciate the u majority of the assignments. I um have received but there is one that I am not able to fill and that is the Alimont landfill community monitoring committee. So I am not accepting that um assignment. I did want to um suggest that if there wasn't another council member who was available or interested in doing that, that is um an assignment that we would be able to give to a community member. Having already sat on that um committee for more than three years in the past, um I I don't think it is um strategically important to um a Pleasanton city council member to be there. Um our that is not even where our um recycling and and um garbage goes. And as sitting on that, I often wondered why. Well, I do know why there was a settlement. Pleasanton was a part of that settlement back at at that point. And so, we were given a seat on that um committee. But again, it does not have to be an elected position. So, um that's what I'm sharing.

Okay. Uh Council Member Gatos, you sit on that currently. Uh is do you know how frequently? They meet quarterly. Correct. It is. It's once every three months. Okay. Is there another council member that would like to uh step in on that uh committee? Uh we could also open it up to the public, but then we wouldn't have someone until we do spring recruitment. How about how about if we open it up to the public, but I would take it until we do that.

And as I said, I I'm happy to continue for continuity sake. I do understand the point Council Member Testa's taken. Um, you know, somebody with a a science background, somebody with a background in that who's, you know, we have there's people from the Sierra Club there. Um, it's it's a it's a good group, but um, I I do understand sometimes it feels a little out of place. Um, and there's a lot of technical data and there there may be someone in the community that may be much more interested and suited to it. So, I'm happy to continue to serve until we find a a community placement if that's the direction that we go. Okay. So, so excuse me if if I may. So, uh we do spring and fall recruitments generally with the rest of our stuff and we place other county level things. Clerk, we could add this to that at that time. Correct. Yes, that's correct.

Okay. So, maybe we just do that if council member Gatos, you wanted to stay on it. Sure. Can I also mention I think it would be great to bring forward to our ENE committee. I I think there's a um a real um interest in recycling and I think some people there might really be eager to be a part of that discussion. Anyone that's not a council member that would sit on it will have to still report out to us. So that's the only nuance about this. Yeah. Council member or vice mayor

just I agree with what director council member said. Um, it would be right up the alley of perhaps someone on the E and committee that uh is scientifically oriented and who really loves looking at groundwater uh uh and um well so we and hazardous uh material assessments and that type of thing. It's right up their alley. Uh okay. Well, so I uh my proposal is we open it up to the public. That way an ENE member or even community member could do it and we could just add it as the city clerk said in the spring and gados would be our appointment right now until we could do that and complete that if that's fine.

And and I'll say I think that's a great way to go. It's just the ENE it would probably be a quicker transition and ask them to have an appointment to it would and let it be in their ballpark going forward that that would be an assignment that they would find a liaison for but just just my thoughts that's yeah that's fine okay so are you making the motion to have gatos on that and everything else per the slate sure okay I'll make that motion okay we have a motion made can I get a second I'll second

all All right, just to clarify, uh the motion is to uh do as proposed except for the alteration of Altimont Community Monitoring Committee, Shelby Gatos, with the intention to open it up to the public in the spring recruitment process. We have a motion made and seconded. Any comments before we continue to vote? Seeing none, go ahead and lock in your votes, please. The motion passes unanimously. Thank you. Thank you very much. Uh I would almost congratulate congratulate the new vice mayor, but it takes effect January 1st. So there you go. Just a little longer. Yeah. Appreciate the honor.

All right. Uh with that, that completes all the items on the public hearings and we're going to move to matters initiated by council. Do we have any matters initiated for the last meeting of the year?

I I had something I just wanted to I've brought up a few times. um you know, seeing so um so so many businesses that have been um hit and going out of business in Pleasanton and everywhere really right now. Um but specifically for our downtown, and I've mentioned this before and just wondered why we haven't pursued it. um a vacancy tax. Is that a discussion that we could have in future? I love that our um PDA did the uh windows so that the store the vacant storefronts look cheerful instead of bleak. Um, but there's been more that are closing and some that have gone on so incredibly long, it seems like a real disservice to our downtown to allow those to stay vacant. And um I've talked to colleagues in other communities and they've instituted vacancy tax to um discourage um vacancies for such long periods of time. Is that a discussion that I would have support on having in the future?

I'd support that. Okay. Any additional support hearing? None. not sufficient support. Okay. Anything else? I I would just have a question of why that would not be because I it just seems like a logical thing. Is there some reason that there is um we're not going to be able to discuss the matter. It's not agendaized. So, you've matters initiated and there's insufficient support. Wow.

Okay. Uh anything else for matters initiated? Seeing none, we'll close that and we're going to move on to council reports. So, right now, um I just want to clarify for my fellow council members that I uh spoke with the city attorney and uh I've notice on the agenda there's not a place for the city manager to report out for possible city business and some other just general activities. So, uh not necessarily for this. I'm springing it on the city manager. I'm sorry, but uh uh the city attorney confirms it would go into council reports. We could start off with the city manager report. Do you have something at this time as I'm springing this on you? I I don't for tonight, but I will for January 20th.

Yes, please. And if we could ask the city clerk to possibly just uh I know we don't have it in the agenda software, but we'll just keep it in this spot. Uh and the city attorney can help us with that. All right. So, with that, uh we're going to go through the order. So, uh vice mayor for the last uh time as vice mayor, council reports. Um, of course, like all of us, had the pleasure of uh being in the holiday parade and uh spreading the good cheer that went with that. Uh, I attended um the uh Livermore Ammer Valley Water Management Agency special meeting that was held last week as the chair. Um the main item was um considering a contract amendment for the construction management contractor for the critical rebuild of a pumping station. Uh this is a system that discharges treated water to the bay. Um and uh there were sign significant concerns about um going over the not to exceed amounts on the part of the contractor but driven primarily by poor performance of the construction contractor um along with regulatory restrictions and delays that contributed to that less than stellar performance. Um ultimately that contract amendment was approved um after um a lengthy discussion with the the con construction management contractor. Uh also attended the Amador uh county mosquito abatement district meeting. Um some good news to report there in terms of Westnile virus. There were no dead birds uh that had Westnile virus infections that were found in Pleasanton for all of 2025. Uh which is a good thing and uh that's if I recall correctly. So, uh, operational results are reported out every month and made a note of that one. Thank you.

Thank you very much. Uh, council member Gatos for the last time this year. Thank you. Uh, in addition to the hometown holiday parade, the mayor Balch and I attended the city and PUSD meeting on the Tuesday the 9th where we got an update about the first street in Bernal property. That was very interesting. First kind of look at that of what their conceptual design is. uh talked also about their interest in cell towers on some school district property and then on the 11th I attended both the points and uh two meetings with stop waste the recycling committee opting to cover for someone who couldn't make it uh and several good pieces of information about that but those are the only two out for report so thank you

thank you uh council member Tessa um holiday parade um best turnout ever um really great event and Again, kudos to all the staff that made that happen. Um I and uh the council um member I know your name.

I thank you. Um um we attended an uh commission ad hoc committee that um we've been discussing the reorg reorganization of some of our commissions. Uh I also attended the Lav Mwa meeting Liverour Amador Valley Water Management Association and it was well reported by the vice mayor. Um I attended a valley links and along with my many um regional assignments on this council. Um one of my assignments is the wheels bus and I am assigned to um Valley Links in that capacity. So I attended the Valley Links meeting in that capacity. I also attended uh gosh I think it was just last night goodness village holiday event and that's always such a um a um uplifting um message of our formally unhoused that are um receiving not only um shelter but services in Goodness Village and some really great people that are serving that population. So that's it.

Council member Aker, please. On 12:30, I attended close session council meeting to administer the city manager evaluation along with the rest of the council. On the 6, attended the hometown holiday parade and treelighting celebration. It was a wonderful event and I hope uh more community members get a chance to come to it in the future. On the on the 8th, I attended the ad hoc council subcommittee meeting regarding committees and commissions. And on the 15th, uh I attended a LPFD joint powers authority meeting. And that's all I have.

Okay. Thank you. Uh on December 3rd, I attended AVA Community Energy's executive committee meeting. Tomorrow is Ava's main board meeting. Ava is having a challenge with uh fiscal deficits on the horizon projected. They are evaluating uh changing the value proposition which is how much of a discount from P Gen the AVA product is offered at uh there's also talk of removing the opt out fee if you'd like to go back to P Gen because it is about choice and community investment grants. It's unfortunate that Ava's, you know, AA's having a belt tighten like many organizations and they're trying to figure out how. on the sixth, the hometown holidays as all of us have mentioned and I think we're all very proud of our city at this time and uh the countless people at the city who helped make that come together and the volunteers. So, thank you to the hometown holiday committee as well as our park and rec staff. On the 9th, the PUSD liaison meeting as council member Gatos mentioned. Uh on the 10th, Alama County mayor's conference uh with the city manager. It was in Dublin and we heard about Ursula Jones Dixon's report of the DA's office and the backlogs on uh prosecuting uh capital offenses uh which was staggering. Uh on the 11th, ACTC had a meeting related to audit results, benefits for employees. But the more notable things for my fellow council members is plan Bay Area 2050 plus was presented with an update on that and express lane toll enforcement ordinances to update the express lane tolls for now the vehicles not going uh being allowed to traverse them, but also the new lanes coming online on 680 eventually uh northbound, but currently opening southbound. And just so my um fellow community members know, the southbound pay lanes from approximately Bernell,

Sonol Boulevard, Bernell down to Sonol area will open. They're expecting in spring of 26. So it's right around the corner. Um on the uh 12th, the chambers had a board meeting planning event that I attended. On the 13th, Scott Rton was a 25-year-old killed in a motorcycle accident and resident of this community. His memorial was held at our senior center. It's a it's a horrible story, but uh many people that loved him and knew him came out on the 15th. The LPFD joint meeting as council member Iker reported out. We talked about the fiscal year end budget. There's a modest surplus that will be returned principally to Pleasanton. And one of the notable things that saved money was the labor cost uh labor negotiation contract actually because we were uh five meetings to reach that contract. there was some modest savings there that was able to be reclaimed by uh the JPA which is great to hear. And then uh last night uh council member Iker forgot but we attended PAC 911's Eagle Court ceremony. Seven youth individuals of Pleasanton received the honor of Eagle South in our community. I posted it and then I got called that there was a one on Sunday that I didn't know about and another number of Eagle Scouts were promoted. So, uh, great job for the future leaders of our community. On the 17th, tomorrow morning, if you're interested, uh, PUSD is hosting the forum on youth apprenticeship, trying to encourage apprenticeships for our PUSD students in our community with our employers and local um um um, youth. So, we're we're really supportive of that and I just wanted to point that out. So, with that, uh, thank you very much. Council member Tessa, would you like to take us out, please? The Pleasanton City Council adjourns this meeting with a tribute to our nation's men and women serving in the military and with gratitude for every United States veteran who has bravely

answered the call to serve. Further, we wish to honor the memories of those who have made the ultimate sacrifice in conflicts both past and present in defense of our country. Thank you very much. Please have a happy and safe holiday season and happy new year. This meeting is a