Sacramento City Council Meeting - June 11, 2024

The Sacramento City Council met on June 11, 2024, at 5:00 PM (meeting called to order at 5:34 PM) to adopt the FY2024/25 Operating Budget and 2024-2029 Capital Improvement Plan, among other items. The meeting included a consent calendar, public hearings, and discussion of the Measure U Community Advisory Committee's follow-up recommendations. The budget, which closes a $66 million deficit without layoffs, was adopted by a 7-2 vote after extensive public comment and council deliberation.

Consent Calendar

• Item 1: Approved a sole source agreement with Unseen Heroes (CLTRE) for entrepreneurial training and grantmaking, not to exceed $750,000 (two-thirds vote required).
• Item 2: Received and filed the Sacramento-Yolo Mosquito & Vector Control District Annual Report.
• Item 3: Awarded a contract to Goodwin-Cole Co., Inc. for shade canopy repair/maintenance, not to exceed $354,598 over five years.
• Item 4: Adopted Resolution No. 2024-0187 accepting the FY2022/23 Single Audit Report.
• Item 5: Received and filed the FY2022/23 Transportation Development Act Fund Audited Financial Statements.
• Item 6: Received and filed the FY2022/23 Sacramento City Employees’ Retirement System Annual Financial Report.
• Item 7: Suspended competitive bidding for Department of Utilities cleanup services via RFP (two-thirds vote).
• Item 8: Authorized an administrative services agreement with the Housing Authority for property management at 827 K Street.
• Item 9: Received and filed the Measure U Community Advisory Committee 2024 Workplan.
• Item 10: Suspended competitive bidding for on-call electric motor repairs via RFQ (two-thirds vote).
• Item 11: Approved Change Order No. 1 for Rio City Café sewer replacement, increasing total to $692,000, with a budget transfer of $375,000.
• Item 12: Adopted Resolution No. 2024-0189 supporting a grant application for the 8th and R Courtyard Affordable Housing Project (Monarch Project) at 805 R Street, 239 units.
• Item 13: Approved a certified list of on-call general contractors for public facilities via RFQ (two-thirds vote).
• Item 14: Adopted Resolution No. 2024-0190 increasing the Fire Apparatus Program budget by $450,000.
• Item 15: Continued to a later meeting (Ordinance on Active Transportation Commission).
• Item 16: Adopted Resolution No. 2024-0191 accepting an $850,000 SBA grant for infant/toddler care expansion.
• Item 17: Adopted Resolution No. 2024-0192 initiating proceedings for Village Garden Landscape Maintenance District, setting a public hearing for July 23, 2024.
• Item 18: Authorized a three-year lease extension for Triple-R Adult Center at 5962 South Land Park Drive, approximately $203,565.
• Item 19: Renewed contract with Allied Universal Security Services, increasing by $4 million to a total of $27.5 million.
• Item 20: Awarded a contract supplement to West Coast Arborists for tree pruning, not to exceed $2,000,000.
• Item 21: Authorized student intern service agreements with The Community College Foundation and University Enterprises, Inc., each up to $2,500,000.
• Item 22: Authorized a five-year professional auditing services agreement with Macias, Gini, & O'Connell, LLP, not to exceed $1.79 million.

Public Comments & Testimony

• On Consent Calendar: Multiple speakers addressed Item 1 (CLTRE agreement). Mike Snell and Lambert expressed support for the creative economy funding, while Macworthy opposed the suspension of competitive bidding, calling it "bid rigging." Charles Fost criticized the process as benefiting nonprofits. On Item 12, Charles Fost suggested future projects consider gender-nonconforming populations. Sam Cirillo (Item 17) opposed reduced mowing frequency in the Village Garden district.
• On Measure U (Item 24): Public speakers supported participatory budgeting and focus groups. Lambert expressed concern about Measure U funds being combined with the general fund. Keon Bliss urged reinvestment from police vacancies into participatory budgeting. Marbeya Sala thanked the council for funding focus groups ($16,000). Mike Snell (cannabis operator) argued for broader business tax reform.
• On Budget Adoption (Item 23): 47 speakers provided testimony. The majority, representing business and property owners (e.g., Mike Testa of Visit Sacramento, Michael Alt of Downtown Partnership, Josh Leachman of Downtown Railyard Venture, Robert Heid of Metro Chamber), urged support for the city manager's proposed budget with no cuts to public safety. Several speakers recounted personal incidents of violence and homelessness, demanding sustained police funding. Opponents included Keon Bliss, who argued police budget has increased despite vacancies, and advocates for active transportation and free transit for youth. Multiple speakers criticized the shift of ride-free RT funding to school districts, calling for full city funding. A mother and teacher, Vanessa Kutteback, and parent April Ybarra expressed dismay at the negotiation process. The police union president (Dustin Smith) stated the department is "de facto defunded" with 657 officers and 40 dispatchers, needing 1,056 officers.

Discussion Items

• Item 24: Measure U Community Advisory Committee Follow-up Recommendations: Chair Marge Dickinson presented the committee's recommendations, emphasizing equity, homeless services, and restoration of programs. The committee expressed disappointment that participatory budgeting was not funded but was hopeful about focus groups. Councilmember Vang praised the committee's work and highlighted the need for equity in budgeting.
• Item 23: Adoption of FY2024/25 Operating Budget and 2024-2029 Capital Improvement Plan: Finance Director Peter Coletto presented the balanced $1.6 billion budget (847 million in general/Measure U funds). The budget closes a $66 million gap using 55% one-time solutions, with no filled positions eliminated. It includes the mayor's memo restoring $1.59 million in youth programs, language access, and other items. The mayor noted the budget maintains police funding and incorporates a 3.3 million draw from the economic uncertainty reserve, leaving the reserve below the 10% policy minimum. Councilmembers debated public safety, alternative response, and active transportation. Councilmember Valenzuela proposed directing the city manager to explore shifting sworn officers from encampment outreach to patrol and to protect internal affairs positions. The mayor and city manager agreed to a fall workshop on alternative response, including labor partners. Councilmember Vang expressed hesitation, citing the need for more equitable investment. The budget was adopted 7-2.

Key Outcomes

• Budget Adoption: The FY2024/25 Operating Budget and 2024-2029 Capital Improvement Plan were adopted (Resolution No. 2024-0193) by a 7-2 vote. Voting yes: Guerra, Jennings, Kaplan, Maple, Talamantes, Thao, Steinberg. Voting no: Valenzuela and Vang.
• Budget Amendments: The approved budget includes $16,000 for Measure U focus groups, restoration of youth programs, and a language access coordinator. The city manager and mayor committed to a fall workshop on alternative emergency response models.
• Consent Calendar: All items except Item 15 (continued) were approved unanimously.
• Council Comments: Councilmember Talamantes requested a 2:00 PM workshop on sideshows. Councilmember Thao and others announced community events. The meeting adjourned at 9:13 PM in memory of Kevin Brace.