Lancaster, a town in the Antelope Valley north of Los Angeles, underwent significant changes a decade ago, particularly on Lancaster Boulevard, its main commercial artery. The street was transformed by widening the sidewalks, planting numerous trees, and reducing the road from five lanes to two for vehicles. This renovation attracted a surge in visitors and new businesses to the area.
This example serves as a valuable lesson for other regions like the San Fernando Valley, known for its large, arterial streets termed as boulevards. El Cerrito can also draw insights, especially in light of its challenges with San Pablo Avenue. The key takeaway is the importance of enhancing sidewalk life and creating inviting public spaces. Prioritizing placemaking, along with safety, is essential. Incorporating elements like trees and amenities improves the overall urban experience, offering environmental, health, and economic benefits. SF Gate featured this charter city a few days ago:
Lancaster, CA transformed its downtown in just 8 months by redesigning it’s main street from a mini-highway to a tree-lined boulevard.
For the cost of just $11.5M, the project has generated $273M in economic output since 2010, creating 800 jobs, and nearly doubling tax revenue!
Lancaster, CA transformed its downtown in just 8 months by redesigning it's main street from a mini-highway to a tree-lined boulevard.
For the cost of just $11.5M, the project has generated $273M in economic output since 2010, creating 800 jobs, and nearly doubling tax revenue! pic.twitter.com/kS3E4dpjGq
El Cerrito could benefit from successes in thriving communities like Lancaster. Please encourage El Cerrito leadership to seek solutions that not only allow the city to survive, but to also thrive!
Here is how you can help: – Share this post with other residents. – Attend the monthly City Council meetings in person. – Post on Next Door – Voice your concerns. Tell the City Council to require that all Councilmembers reside in the City of El Cerrito during their time on the Council. – Council meetings are remote and in-person, but public comment is now limited to in-person attendees.
If you want to contact City Council Members. All their emails are below: – Councilperson Gabe Quinto gquinto@ci.el-cerrito.ca.us – Councilperson Carolyn Wysinger cywysinger@ci.el-cerrito.ca.us – Councilperson Tessa Rudnick trudnick@ci.el-cerrito.ca.us – Mayor Lisa Motoyama lmotoyama@ci.el-cerrito.ca.us – Councilperson Paul Fadelli pfadelli@ci.el-cerrito.ca.us
In Tuesday’s annual State of the City address, outgoing El Cerrito Mayor Lisa Motoyama delivered a message of optimism and progress for our beloved city. While the tone was cheerful, it’s essential to consider the broader context and some missed points that are crucial for a complete understanding of El Cerrito’s current situation.
Her optimistic perspective failed to foster trust or instill confidence in the city’s leadership. As a result, numerous citizens are left questioning whether our leadership is out of touch with the real challenges facing our community, as the commentary seldom aligns with our lived experiences.
One notable aspect of the Mayor’s address was her advice to discount statements made on social media. While social media can indeed be a source of misinformation, it’s also a vital platform for citizens to engage in discussions and voice their concerns. Discounting these voices might inadvertently undermine the spirit of open dialogue that’s essential for our community’s growth. A few of the most critical challenges ahead are listed here:
State Auditor Recommendations
In March 2023, El Cerrito presented its latest corrective action plan, responding to the critical audit report from 2021 by the California State Auditor. This report, part of a high-risk local government agency audit program, highlighted El Cerrito’s perilous financial condition and excessive spending habits.
While the city has taken steps to address some risk areas, challenges persist in managing spending effectively. The State auditor’s report notes progress yet underscores the city’s struggle to align expenditures with revenues.
Federal relief funding has provided a lifeline, aiding El Cerrito in improving its fiscal health. However, the city continues to dip into its reserves to balance the budget. As of the fiscal year 2021–22, the general fund reserve stood at $16.4 million. Recent decisions to spend a portion of reserves to balance the budget and create an emergency reserve resulted in non-restricted reserves dropping to around $5 million. This reserve amount of $ 5 million is just half the GFOA amount.Consistently dipping into general fund reserves is the same path that led to depleting reserves and reliance on short-term borrowing.
El Cerrito ceased its short-term borrowing in 2022–23, but recent budget updates reveal concerning trends. Immediately following, the mid-year update proposed an increase in both revenue and expenditures, with a significant portion allocated to salary increases and community development projects. This approach continues the pattern of expenditure growth outpacing revenue, a behavior that previously led to financial instability.
Despite avoiding short-term borrowing, El Cerrito’s financial practices suggest a disconnect between spending and revenue. The city has yet to implement critical actions necessary for long-term fiscal stability. As of the latest audit, El Cerrito’s expenditures are projected to exceed its revenues, continuing a cycle that risks future financial health. The practice of presenting a balanced budget with one-time and capital expenditures excluded from budget calculations is a prime example. According to the State Auditor, the budget is technically imbalanced if planned expenditures are omitted, even if the City mentions these planned expenses in the text.
The Library Campaign
Another highlight of the address was the mention of the ongoing library campaign. While this is undoubtedly a noteworthy initiative, it’s equally important to recognize that over $200,000 has already been spent on a previous unsuccessful library campaign. Understanding the challenges and lessons learned from past efforts is crucial for making informed decisions moving forward.
Mayor Motoyama’s address did not touch upon some significant issues, such as missed opportunities – the failure to apply for a state grant, which could have provided much-needed funding for various city projects. Additionally, there was no discussion of the rising costs associated with construction projects or the fact that El Cerrito’s credit rating has declined over time.
One significant financial concern unaddressed in the speech was the increase in pension liability from $57.8 million to $85.0 million. With CalPERS charging 6.8%, this translates to an additional cost of $1.8 million which accounts for about 12% of the city’s budget. These figures deserve serious consideration as they have a direct impact on our city’s financial stability.
El Cerrito faces a crucial juncture. Aligning spending with revenues and building a robust reserve are essential steps toward a stable financial future. The community and its leaders must work together to ensure responsible fiscal management, safeguarding the city’s viability for years to come.
Firstly, initiating the process should involve the creation of a transparent timeline, open to public input and subject to thorough review by the Financial Advisory Board and subsequent consideration by the City Council.
To ensure a more complete and realistic portrayal of the state of the city, it’s crucial that these issues and concerns are addressed transparently. Additionally, the potential for a budget deficit in FY 2024 and a commitment to open governance, including the release of survey data, should be considered as part of our city’s growth and development.
In conclusion, while Mayor Motoyama’s address was cheerful and well-received by some, it’s essential to delve deeper into these unaddressed issues to gain a more comprehensive understanding of our city’s challenges and opportunities. An informed and engaged citizenry is the foundation of a thriving community, and open dialogue should always be encouraged.
Although the departing mayor chose not to address the city’s existing challenges, this situation provides a distinct opportunity for the incoming mayor to prioritize accountability and transparency and to address the recurring concerns voiced by our Citizens.
Here is how you can help: – Share this post with other residents. – Attend the monthly City Council meetings in person. – Post on Next Door – Voice your concerns. Tell the City Council to require that all Councilmembers reside in the City of El Cerrito during their time on the Council. – Council meetings are remote and in-person, but public comment is now limited to in-person attendees.
If you want to contact City Council Members. All their emails are below: – Councilperson Gabe Quinto gquinto@ci.el-cerrito.ca.us – Councilperson Carolyn Wysinger cywysinger@ci.el-cerrito.ca.us – Councilperson Tessa Rudnick trudnick@ci.el-cerrito.ca.us – Mayor Lisa Motoyama lmotoyama@ci.el-cerrito.ca.us – Councilperson Paul Fadelli pfadelli@ci.el-cerrito.ca.us
This blog has been consistently focused on the critical aspects of governance, accountability, and transparency within El Cerrito’s city administration. The Chief Executive Officer, and City Manager, carries the responsibility for overseeing both the operational and financial performance of El Cerrito.
It is essential to note that the City Manager is accountable to the City Council. Unfortunately, despite concerns about the City Manager’s subpar performance, the City Council has not acted in the community’s best interest. Their responsibilities should extend beyond mere photo opportunities, attending business openings, adopting proclamations, taxpayer funded travel and promoting the city. The Council’s primary duty is to safeguard the community’s well-being, and regrettably, they have not fulfilled this duty adequately.
In a state audit conducted in 2021, El Cerrito’s financial practices were found to be severely deficient, placing the city perilously close to financial collapse. This audit ranked El Cerrito among the ten most mismanaged cities in the region. Unfortunately, the situation has not shown significant improvement, as the city now ranks 13th worst out of over four hundred California cities. Surprisingly, no substantial actions have been taken by the City Council in response to these alarming findings.
Before Karen Pinkos assumed the role of City Manager, El Cerrito enjoyed the prestigious A- bond rating. However, shortly after her tenure began in 2018, the city’s bond rating plummeted to BBB-, just one step above junk bond status. The bond rating has only inched up one notch in over two years. Yet, the City Council did nothing.
Costly Sexual Harassment Settlement: Despite facing financial distress and bankruptcy threats, El Cerrito paid out over half a million dollars for a settlement, and the city has not implemented policies to prevent such incidents from happening in the future. Yet, the City Council did nothing and guess what? Another staff member was mistreated by a supervising officer.
El Cerrito’s failure to align pension payments with its unfunded liability has resulted in an enormous $85 million pension liability. Although the city allocated $1 million for the Section 115 trust, the city is not legally obligated to use these funds to reduce the unfunded liability. This places the city’s financial future at risk, potentially leading to state recommendations for bankruptcy. Yet, the City Council did nothing except watch the UAL grow and grow and grow.
Lack of Accountability in Leadership: The absence of performance standards for city leadership, including the City Manager, allows for a range of behavior without consequences and zero performance standards. This lack of accountability has serious repercussions, as evidenced by the city’s lackluster performance and by a recent incident where the City Manager used inappropriate language and told the Director of Public Works to be silent. Such mismanagement not only affects staff well-being but also exposes the city to potential legal actions by its employees. Yet, the City Council did nothing and said nothing.
The City Manager and the Mayor set the agenda of Council Meetings. The practice of including Financial Reports in the City Council packet, with no mention of the Financial Reports on the agenda bypasses opportunity for meaningful discussion about the City’s budget performance. Only those diligent citizens who read all 167 pages of the October 17th packet can locate the few pages of financial statements hidden within.
Moreover, the City Manager often presents items for FAB and City Council approval at the last minute, leaving no room for meaningful changes. This rushed decision-making has resulted in ill-advised choices that have pushed the city to the brink of bankruptcy. Yet, the City Council did nothing.
All these issues have arisen during the tenure of a highly compensated City Manager. Any one of these infractions should raise significant concern, yet the City Council has failed to address these matters adequately.
El Cerrito’s financial and operational management is facing dire challenges, stemming from a lack of governance, transparency, accountability, and sound decision-making. It is imperative for the City Council to address these concerns promptly to prevent further financial deterioration and restore the city’s fiscal health and the well-being of its staff and community.
Your Thoughts? What are your experiences with city services in El Cerrito? Do you see similar issues, or do you have a different perspective? Share your stories and suggestions for how our city can improve. Let’s start a conversation for meaningful change.
Here is how you can help:
Share this post with other residents.
Comment on the post
Attend the monthly Financial Advisory Board meetings in person.
Post on Next Door
Voice your concerns with the Council.
Council meetings are remote and in-person, but public comment is now limited to in-person attendees.
If you want to contact City Council Members or the City Managers, all their emails are below:
In leadership roles within public agencies, the common practice often involves promoting the next person in line for a position. While this approach may have its merits, it’s not always the wisest strategy. Promoting employees solely based on their tenure comes with a set of advantages and disadvantages that warrant careful consideration:
Advantages of Tenure-based Promotion:
Loyalty and Stability: Long-term employees often exhibit a strong sense of loyalty to the organization and possess an in-depth understanding of its culture and operational processes.
Employee Morale: Recognizing and rewarding tenure can significantly boost morale and motivation among staff, as it demonstrates the company’s commitment to and respect for their years of service.
Retention: Tenure-based promotion can encourage employees to stay with the company for an extended period, as they perceive their tenure as valuable and a potential pathway to career advancement.
Predictability: It offers a clear and predictable route for career progression, simplifying human resources planning and employee expectations.
However, while these advantages are compelling, there are critical downsides to consider as well, particularly when it comes to the El Cerrito City Council’s approach. The Council did not consider anyone else besides the Assistant City Manager.
Disadvantages of Tenure-based Promotion in the El Cerrito City Council:
Skill Mismatch: Tenure doesn’t necessarily correlate with skill or leadership ability. Promoting employees solely based on tenure can lead to placing individuals in roles for which they are ill-suited. In the case of El Cerrito, this mismatch became apparent when the city’s bond rating dropped precipitously. The bond rating has yet to recover.
Complacency: Relying solely on tenure as a promotion basis may foster employee complacency. They might rest on their laurels rather than actively striving to develop new skills or enhance their performance. El Cerrito’s city staff, for instance, appeared to be complacent, failing to improve their mediocre performance.
Lack of Innovation: Long-term employees may resist change, potentially stifling innovation and the introduction of fresh ideas. Even when the State Auditor raised concerns about El Cerrito’s governance, the initial response of city management was to discredit the Auditor rather than address the issues, leading to a lack of progress and innovation.
Potential for Stagnation: An organization that predominantly promotes based on tenure may become stagnant, lacking diverse perspectives and fresh approaches to problem-solving. El Cerrito’s reliance on external consultants for financial and information technology matters is a testament to this stagnation.
In light of these disadvantages, it is evident that the El Cerrito City Council’s decision to promote solely based on tenure has been detrimental. Despite the State Auditor’s damning assessment and the city’s declining performance, the council has failed to take corrective action. There are no established performance standards or a clear plan for rectifying past mistakes, leaving the city and its citizens in a precarious situation.
After 12 years as Assistant City Manager, Karen Pinkos became City Manager on January 1, 2019. Since then, several disturbing events have happened under her watch, yet she acknowledges none, nor has she addressed these significant and catastrophic issues.
As the City Manager conducts business as usual, she has two patented phrases. One of her phrases is… “not on my watch!”
Well, this happened on your watch:
State Auditors Report: In a state audit conducted in 2021, El Cerrito’s financial practices were found to be severely lacking, pushing the city dangerously close to bankruptcy. This audit placed El Cerrito among the ten most mismanaged cities in the area. Unfortunately, the situation has not significantly improved, as the city now ranks 13th worst out of over 400 California cities.
BBB- Bond Rating: Prior to Karen Pinkos assuming the role of City Manager, El Cerrito enjoyed a prestigious A+ bond rating. However, shortly after her tenure began in 2018, the city’s bond rating plummeted to BBB-, just shy of a junk bond status.
Costly Sexual Harassment Settlement: El Cerrito faced financial distress and bankruptcy threats, yet the city paid out over half a million dollars for a settlement and the city has failed to implement policies to prevent future occurrences.
Unfunded Pension Liability: El Cerrito’s failure to align pension payments with its unfunded liability has resulted in an enormous $85 million pension liability. While the city allocated $1 million for the Section 115 trust, it is not legally obligated to use these funds to reduce the unfunded liability. The city’s financial future is at risk, with potential recommendations for bankruptcy by the state.
High Turnover in Finance Director Position: The city has had three Finance Directors during the last two years. The city’s toxic work environment led to the shortest tenure of a Finance Director who could have helped rectify its financial issues. The replacement, a much less experienced Finance Director, has been unable to provide accurate financial reports, even placing year-to-date numbers in a column designated for quarter-to-date figures.
The City Manager’s second favorite phrase claims both Accountability and Transparency. We saw this consistently repeated in each mailer for the Library tax, yet The City Manager’s actions reflect an entirely different story. Read on:
Lack of Accountability in Leadership: No performance standards exist for city leadership, including the City Manager. This lack of accountability allows for a range of conduct without consequences and zero performance standards. The lack of accountability leads to the second item:
Telling a Subordinate to STFU: In a recent October 3rd incident, the City Manager was heard using inappropriate profane language and telling the Director of Public Works to be silent. Such mismanagement of anger not only impacts the well-being of the staff but also exposes the City to potential additional legal actions by its employees.
Transparency and Accountability Concerns: The Financial Advisory Board (FAB) meetings, once recorded during the previous Finance Director’s tenure, are no longer recorded. Unfortunately, her position excludes the public from accessing the proceedings unless they are physically present. This allows the City Manager to control the narrative surrounding these meetings, potentially biasing the commentary to her advantage.
Circumventing the Financial Advisory Board: Many high-value items are not presented to the Financial Advisory Board (FAB) for consideration. For example, the City’s initiative for the analysis of the Library costs was not presented to FAB. Recent additions to the City’s budget were not presented to the FAB for consideration. Furthermore, collaborating with a group she consistently bypasses is simply not possible. FAB agendas posted here.
Including Financial reports in the City Council packet, but no mention on the agenda. This tactic circumvents any meaningful discussion about the City’s budget performance. Further, only those astute Citizens who read all 167 pages of the October 17th packet can find the 5-10 pages of financial statements that have been buried within.
Furthermore, the City Manager often presents items for FAB and City Council approval at the last minute, leaving no room for meaningful changes. This rushed decision-making has resulted in ill-advised choices that have pushed the city to the brink of bankruptcy.
All these events have occurred during her tenure as a highly compensated City Manager. Any one of these infractions should be cause for considerable concern, yet the Citizens of El Cerrito are stuck with a litany of transgressions and poor performance by someone who should perform at a much higher level.
El Cerrito’s financial and operational management is in dire straits, with numerous issues stemming from a lack of governance, transparency, accountability, and prudent decision-making. Addressing these concerns is crucial to prevent further financial deterioration and to restore the city’s fiscal health and the well-being of city staff.
Your Thoughts? What are your experiences with city services in El Cerrito? Do you see similar issues, or do you have a different perspective? Share your stories and suggestions for how our city can improve. Let’s start a conversation for change.
Here is how you can help:
Share this post with other residents.
Comment on the post
Attend the monthly Financial Advisory Board meetings in person.
Post on Next Door
Voice your concerns with the Council.
Council meetings are remote and in-person, but public comment is now limited to in-person attendees.
If you want to contact City Council Members or the City Managers, all their emails are below:
As the year draws to a close, it’s important to reflect on the core purpose of this blog. Our goal has always been to promote responsible, sustainable, and transparent governance in El Cerrito. Each post we publish is aligned with this objective.
At El Cerrito Community for Responsible Government, we’re aware that some of our viewpoints might not be widely accepted and could cause discomfort. This is a community with deep roots, where many have longstanding relationships with city officials and staff. There are also valid concerns about property values, excessive fees, and various other local issues. Despite this, we remain committed to fostering transparency in our discussions.
Elevate the Conversation
We welcome your feedback, especially if you spot any inaccuracies or feel something has been overlooked in our posts. However, we urge you to avoid personal attacks, spreading falsehoods, or requesting us to engage directly with city staff. If direct contact with city officials were an effective solution to these issues, there would be no need for this blog.
We appreciate your understanding and engagement with our content. Wishing you all
City Leadership: It’s not Us, It’s You. You just don’t understand.
Citizens: Most residents want a new and improved library. We support the City’s efforts, but clearly not at any cost.
No!
In 2016, the initial attempt to secure a library bond in El Cerrito faced a resounding rejection from the Citizens. The bond measure crumbled due to a widespread lack of faith in the leadership of the City of El Cerrito. This unmistakable message from the community was loud and clear, but unfortunately, the city council and city manager chose to disregard the concerns voiced by its residents.
Ignoring sage advice
Both the Citizens and the Financial Advisory Board had advised the City to take actions that would rebuild their trust. However, rather than heeding this counsel, the City moved in the opposite direction. When the current City Manager assumed her role, the City held a pristine AAA- bond rating. Astonishingly, her tenure saw this rapid decline to a disheartening BBB-. While a BBB- rating is slightly better than a junk bond rating, it’s far from desirable.
The El Cerrito City Council placed Measure V on the 2018 ballot to ask El Cerrito voters to approve an El Cerrito Charter and a tax on real estate sales. At that time, Council Members, some of whom are on the City Council now, promised Citizens that the funding from this tax would pay for the library and senior center. Property purchasers within El Cerrito must also pay a city Transfer Tax and the Documentary Transfer Tax. The rate for this city tax is $12 per $1,000 or fraction thereof.
After many promises to improve the lives of Citizens of El Cerrito, the Council once again reneged on their promises. Instead of funding the library and senior center, they allowed the City Manager to cover her mismanagement by using the revenue from Measure V to balance the budget in 2019, 2020, 2022 and in perpetuity.
Fast forward to 2023
After a bailout from the Federal Government, the City’s bond rating managed to inch to BBB. Simultaneously, the City initiated surveys to gauge public sentiment regarding a Property Tax Measure. The first survey took place in May 2023, but apparently, the results needed to align with the City’s expectations, leading to a second survey in October 2023, all at the taxpayers’ expense. Paradoxically, despite the City Manager’s repeated emphasis on accountability and transparency, they chose not to disclose the survey results, causing further frustration in the community.
After facing considerable public outcry, the City eventually made the survey results public. The findings revealed a decline in public confidence between May and October. Nonetheless, as the City kicked the can to a future ballot measure, the City persists in asserting that the Citizens lack understanding and need more education.
The truth is the community desires a library, ideally one that is cost-effective. However, the community’s expectations do not extend beyond this simple request. The library’s funding hours have been severely reduced, with some days having as few as 48 hours of operation per week, closed two consecutive days. It’s not an exaggeration to say that we’ve fought tirelessly to preserve the few remaining hours. Regrettably, the City squandered $70,000 of taxpayer money, a sum more than sufficient to extend library hours, due to their unwillingness to listen to the voices of Citizens, the Financial Advisory Board, or anyone else for that matter.
Moreover, public trust declined between March and October, a downward trend headed for a cliff.
So, El Cerrito, Council and City Manager – you, not us, need to make a significant change. We know far more than you think we know.
Your Thoughts? What are your experiences with city services in El Cerrito? Do you see similar issues, or do you have a different perspective? Please share your stories and suggestions for how our City can improve. Let’s start a conversation for change.
Here is how you can help:
Share this post with other residents.
Comment on the post
Attend the monthly Financial Advisory Board meetings in person.
Post on Next Door
Voice your concerns with the Council.
Council meetings are remote and in-person, but public comment is now limited to in-person attendees.
If you want to contact City Council Members or the City Managers, all their emails are below:
In previous blogs, we delved further into the intriguing world of governance, or more pointedly, the absence thereof. To date, several people have chimed in to say that all candidates live in El Cerrito. But the blog’s crux is governance, and governance is the epicenter of El Cerrito’s woes.
Time to move on from personal attacks and deal with the root causes of El Cerrito’s problems
In this case: No one has demonstrated that El Cerrito has a policy requiring all Councilmembers to reside in El Cerrito during their tenure on the dais.
Now, as we transition our focus to the captivating concept of Fiscal Responsibility, we unravel the complexities and often overlooked ramifications of embracing self-governance.
This edition of our blog sharpens its lens on a critical aspect often entwined with autonomy: the spiral of excessive spending. Join us as we navigate through this financial labyrinth. Read on to uncover more.
El Cerrito’s residents are increasingly concerned about how their city is being managed, especially when comparing it to nearby Hercules. Despite having fewer residents and a smaller area, El Cerrito employs more than 2X staff as Hercules.
Still, fully staffed and fully funded departments rely heavily on Consultants to perform fundamental tasks essentially costing residents at least double the market rate.
This disparity raises questions about efficiency and accountability in city governance.
Fully Staffed + Consultants
Information Technology: A Funded Department Falling Short While the City Manager’s Group appears to be well-funded and fully staffed, the performance of key departments like Information Technology (IT) is underwhelming. IT is crucial for:
Infrastructure Management: Yet, the city excessively relies on contractors for essential functions.
Support and Services: Basic support is inadequate, with no advancement in tackling complex issues.
Data Management and Security: There’s a noticeable lack in proactively securing and managing city data.
Strategic Planning and Network Management: These areas are crucial but are currently neglected.
Despite ample funding, El Cerrito’s IT department’s failure to perform its fundamental roles is a significant concern, leading to an over-reliance on external contractors for vital tasks such as basic security measures.
Finance Department: A Story of Inefficiency The Finance Department, though fully staffed, is underperforming, especially in:
Budget Preparation: The process lacks transparency and public involvement, deviating from standard practices recommended by GFOA.
Revenue Collection: Outsourcing the budget process, financial analysis, revenue analysis has not been effectively integrated into city planning.
Financial Reporting: Misrepresentations in financial reports (page 56 of the City Council packet) such as comparing annual budgets with quarterly figures, raise concerns about either intentional misleading or sheer incompetence.
These shortcomings are critical, as the Finance Department is essential for the city’s financial health and public service support.
First Column IS the ANNUAL not YTD Budget
A Comparative Perspective: Lessons from Hercules In 2011, Hercules was in a dire financial situation, yet it has since made a remarkable turnaround. The key difference lies in governance. Hercules scored a robust 73.29 out of 100 on the California State Auditor’s ranking, significantly outperforming El Cerrito’s modest 47.29 and in the RED. This gap highlights the impact of effective governance, accountability, and transparency.
Conclusion: The Path Forward El Cerrito faces a choice: continue with the status quo or learn from Hercules and strive for excellence. The city must not only address the inefficiencies in its IT and Finance departments but also embrace a governance model that values accountability and community engagement. The cost of mediocrity is high – not just in financial terms but in the quality of services that residents rightfully expect and deserve.
Your Thoughts? What are your experiences with city services in El Cerrito? Do you see similar issues, or do you have a different perspective? Share your stories and suggestions for how our city can improve. Let’s start a conversation for change.
Here is how you can help:
Share this post with other residents.
Comment on the post
Attend the monthly Financial Advisory Board meetings in person.
Post on Next Door
Voice your concerns with the Council.
Council meetings are remote and in-person, but public comment is now limited to in-person attendees.
If you want to contact City Council Members or the City Managers, all their emails are below:
Businessman falls on a negative statistic. Concept of crisis and problem
As we continue toward the new year, it’s crucial to revisit a topic of utmost importance – the city’s financial health and the looming threat of increased taxes. Originally published in January 2021, this blog post is being brought back to spotlight the ongoing concerns surrounding our city’s fiscal mismanagement. Despite previous warnings, there is persistent overspending, reliance on meager reserves and a ballooning unfunded liability of $85 million.
When a city goes bankrupt: Vallejo case study
El Cerrito is struggling with budget deficits and sluggish revenues and risks bankruptcy unless the council takes decisive action. Bankruptcy is a means by which businesses restructure their organization to pay-off debt. So what happens?
In a 2012 interview with Phil Batchelor, Vallejo City Manager at that time, he described the 2008 implosion of the city budget and subsequent outcomes.
Vallejo declared bankruptcy in 2008 when cities across the nation were hurting due to the economic crash at that time. But the problem in Vallejo can be traced back a decade.
The unemployment rate was soaring up to 15%. Businesses were having a hard time. High unemployment reduced the value of the housing stock.
The state abolished the Redevelopment Agencies, taking back money.
The City Council abdicated responsibility. They set salary formulas based on what other cities paid, not what they could afford, and entered into long-term contracts and MOU’s with employees.
Negotiations were not based on trust and no one wanted to say NO. Neither the politicians nor the Unions. The pension costs were not sustainable.
What happened when the City declared bankruptcy?
When you declare bankruptcy you don’t get a free pass. You are obligated to balance the budget, pay legal bills, and address pensions. You also have to pay off bonds.
Bankruptcy forces all parties to the table including employees and retirees.
Bankruptcy brings a third party to preside over the negotiations – a judge.
In the case of Vallejo, declaring bankruptcy resulted in the following changes:
Closed 3 out of 8 fire stations
Cut fire staffing by 42 percent
Police reduced from 155 down to 90 officers which was a 47 percent cut. Police still had to provide service. but they have fewer assets to do it with
Maintenance was deferred. This results in roads and equipment deteriorating.
Current employees face salary cuts, lay-offs, and find themselves having to do more work with less pay. Morale suffers.
How did Vallejo Recover?
After a few years, with the addition of a new City Council and City Manager, the government gained the confidence of the residents. The officials earned the trust of the residents and were able to pass a tax measure. They raised 10 million dollars a year for 10 years and then restored some of the public safety personnel. Although the city of Vallejo is now facing revenue loss due to COVID, they were able to build a reserve budget to address the present crisis.
Similarities between Vallejo and El Cerrito
Both have a City Manager form of government and 5 council members (Vallejo also has a Mayor and Vice-Mayor)
Both abdicated responsibility for a decade. In 2008 El Cerrito didn’t make the necessary cuts and used up the reserve that we need today.
Both cities repeatedly overestimated revenues for consecutive years, with little scrutiny about budget assumptions.
Both have high pensions costs that are not sustainable
Both have strong Fire and Police Unions. Even with the City on the brink of insolvency, the El Cerrito Police Union is scheduled to receive a COLA on January 1, 2021
No one would argue that bankruptcy caused a lot of harm in Vallejo. And while they left bankruptcy court a few years later they are again going to have to make some serious spending decisions. Paraphrasing the Vallejo City Manager from the narrative of the FY2020-21 adopted budget, the future does not look rosy due to pension and healthcare costs. Without addressing this issue, Vallejo may slip back after much hard fiscal restraint.
So what does El Cerrito need to do to avoid bankruptcy? The State Auditor just issued their report on West Covina. Their criticisms of that city parallel many of our criticisms.
Budgets need to be balanced and need to end with a positive balance. The last budget ended at an estimated 2 million dollar deficit. That is not a balanced budget.
Public safety is half the city’s budget and those contracts need to be renegotiated by someone who is not their boss or friend.
We need long-term fiscal planning. There should be an active 5-year budget.
We need to not get a loan every year to survive and paying that loan off needs to be a priority.
We need to generate real Economic Development to create a tax base to establish a substantial reserve. If we had a reserve we wouldn’t need the loan.
We need a staff person capable of accurate fiscal forecasting. Someone who can articulate what assumptions were made and why they were made. Someone who can be nimble in responding to the many changes in the economy that are occurring.
We need a city manager that can remain impartial and negotiate contracts that may not be popular but be fiscally prudent.
If the City Council does not have the political will to face-off with the City Manager and the Public Safety Unions, we may find ourselves in court. With a decade of neglectful watch over the budget, successive City Managers who have been more inclined to seek out new taxes, take home relatively high compensation, and add new positions while reserves shrunk, someone, needs to be the “adult in the room”.
Moving forward, how will the city keep us from insolvency? Will the city staff provide accurate projections for budget planning? Will the City Council members question and act on faulty assertions? As residents, we can hold our City Council officials accountable. Will City Council members hold the City Manager accountable. Will residents hold the city council accountable? We have two new City Council members but three existing members who have been on the Council for many years. Can they change direction? Can they see the structural issues that make this budget unsustainable for the long-term and make decisions today that will help us in the future? Will they make decisions for the short-term that will doom us now and in the future? We don’t have to abdicate our responsibility. We need to stay on top of the meeting agendas, follow the Financial Advisory Board, be ready to ask questions, make comments, and share information with other residents. We vote in our Council members and we can vote them out.
The City of El Cerrito was originally incorporated as a General Law City in 1917 and became a Charter City in November 2018. The City is organized as a Council-Manager form of local municipal government. The City Council consists of five members elected at large for four- year, overlapping terms.
A California charter city is a city that has adopted a charter to govern itself, granting it more autonomy compared to general law cities. Here are some of the advantages and disadvantages:
Advantages
Local Control and Autonomy: Charter cities have more control over their municipal affairs. This autonomy allows them to tailor laws, regulations, and policies to better suit local needs and preferences.
Flexibility in Government Structure: Charter cities can design their own governmental structures, electing to have different forms of city councils, mayoral powers, or city management styles that are more suitable to their community.
Policy Innovation: With greater autonomy, charter cities often become laboratories for policy innovation. They can experiment with new ideas in governance, zoning, local ordinances, and public services that may not be possible in general law cities.
Fiscal Management: Charter cities often have more control over their finances, including setting tax rates and deciding on budget allocations, which can lead to more efficient use of resources tailored to local needs.
Disadvantages
Complexity in Governance: The flexibility and autonomy come with the responsibility of designing and managing a unique system of governance, which can be more complex and challenging compared to following established general law frameworks.
Potential for Mismanagement: With increased autonomy, there’s a higher risk of mismanagement or corruption if local governance is not transparent and accountable to its citizens.
Legal Challenges: Charter cities can face legal challenges, especially when their ordinances or policies conflict with state or federal laws. Resolving these conflicts can be time-consuming and costly.
Inconsistency and Confusion: Residents and businesses operating in or across different charter cities may face inconsistencies in laws and regulations, leading to confusion and difficulties in compliance.
Overall, while charter cities offer significant autonomy and flexibility, they also require a higher level of diligence in governance and management to ensure their unique frameworks operate effectively and in the best interests of their residents. Reportedly, El Cerrito became a Charter City to have more control over Measure V funds.
However, El Cerrito was at that time and remains a troubled City that severely lacked governance. This decision further weakened an already troubled city.
Subsequent blog posts will delve further into the downfalls and implications of this decision.
Pro Tip: If the City Manager rushes toward a vote, it’s probably a bad long-term decision.
Perhaps one day soon, El Cerrito’s leadership will realize that decisions have both short and long-term implications, and the City Council will require a thorough analysis of agenda items before they vote. #elcerrito
El Cerrito operates under a Council-Manager form of municipal government. This structure involves a five-member City Council, elected at-large for overlapping four-year terms, embodying the legislative responsibilities, while the managerial tasks are overseen by a City Manager.
Charter City Status – A Double-Edged Sword: The shift to a Charter City status bestowed El Cerrito with the autonomy to govern its municipal affairs. However, this freedom has also led to significant challenges, particularly in financial and operational management. This lack of governance and accountability further erodes public trust.
The Residency Debate: A crucial aspect of contention is the residency requirement for City Council members. Unlike the general law, which mandates specific criteria for council members, including U.S. citizenship, age, voter registration, and city residency, the Charter City framework of El Cerrito is conspicuously silent on these residency requirements. This has raised concerns, especially with reports of council members not residing within the city limits.
According to multiple sources, one of the Council Members no longer resides in El Cerrito. But there’s nothing to be done about it – at least not now. According to the Municipal requirements, Councilmembers are not required to live in the City they are responsible for serving and where they make policy decisions that impact El Cerrito residents.
Here is how you can help:
– Share this post with other residents. – Attend the monthly City Council meetings in person. – Post on Next Door – Voice your concerns. Tell the City Council to require that all Councilmembers reside in the City of El Cerrito during their time on the Council. – Council meetings are remote and in-person, but public comment is now limited to in-person attendees.
If you want to contact City Council Members. All their emails are below:
– Councilperson Gabe Quinto gquinto@ci.el-cerrito.ca.us – Councilperson Carolyn Wysinger cywysinger@ci.el-cerrito.ca.us – Councilperson Tessa Rudnick trudnick@ci.el-cerrito.ca.us – Mayor Lisa Motoyama lmotoyama@ci.el-cerrito.ca.us – Councilperson Paul Fadelli pfadelli@ci.el-cerrito.ca.us
The City’s decision to delay the library initiative from the 2024 ballot in favor of public education overlooks a significant opportunity in El Cerrito. Many residents support an improved library, yet surveys reveal a lack of trust in the City’s leadership, a crucial factor for the initiative’s success. To build support, the City must prioritize gaining the community’s trust, recognizing that residents are discerning and value genuine accountability and transparency.
Accountability and transparency should be more than just buzzwords. They need to be core values, consistently demonstrated in every decision and action. This means moving beyond declarations to showing concrete evidence of these values at work. Establishing trust with stakeholders requires not just words, but consistent, tangible actions.
To embark on this journey of rebuilding trust, the City should:
Firstly, the City should facilitate public access to information without unnecessary barriers. Public information requests should be handled promptly, without requiring citizens to attend Council meetings, blog or post on ND to obtain information. This openness is crucial for fostering trust.
Secondly, City finances require clarity and responsible management. Expense reduction should be based on thorough analysis, ensuring financial sustainability.
All financial initiatives must be presented to the Financial Advisory Board (FAB) and the Council in a timely manner, allowing for comprehensive review by both groups. With a fully funded and staffed finance department, there are no excuses for delays or inadequate analysis.
To regain public trust, the City needs to demonstrate a strong commitment to these principles. This approach is vital for the City to effectively engage with its community and advance initiatives like the library project.
The upcoming Council elections present an opportunity for new candidates committed to accountability and transparency to step forward, potentially challenging current members.
EECRG is rerunning this blog primarily because the unfunded liability of El Cerrito Pension Costs has ballooned to $85 million dollars during the year since this post was written.
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Lost in the din of cheering about the progress of going from the 8th worst-ranked City in California to only the 13th worst (out of 482, yay us!) was the fact that El Cerrito is tied with its Rogue’s gallery peers as the least prepared to tackle the future costs of employee pension and benefits. So long as we enjoy this dubious company, El Cerrito’s bond rating and operating deficit will remain stuck in the basement.
Despite the “aggressive” cost-cutting, much of it temporary pay freezes, and the federal windfall that plugged a gaping general fund hole, the City has made zero meaningful progress toward determining how it will pay the long-term liabilities. Sure, many cities have a pension and OPEB (mainly retiree health benefits) funding deficit, but, as the report showed, El Cerrito is one of the least prepared. That distinction is notable because fixing it will take the most resources. Recalling how painful the recent cuts were and the battles they entailed, and how lucky we got ($6.5 million from ARPA and the City’s ability and willingness to skirt the use restriction rules), the casual observer might conclude that pension and OPEB are a festering wound, and they would be right. Adding salt to the wound, RPTT will be a LOT less than the $3.5 million received last year and assumed in the budget. In conclusion, we are looking at dwindling resources and a future of reduced services.
As Greta Thunberg told the world…” it is time to panic.” And plan. And act.
(N.B. If you have ideas for a quick fix or hope for another gift from above, you are dreaming. If you want to talk about eliminating waste, get rich quick development schemes, past fraud, manager pay, no new taxes or shifting blame, please start a separate NextDoor thread.)
Step 1. Plan. Create and codify INTO LAW a Pension Funding Policy.
There are many good examples of Pension Funding Policies out there, and the City’s financial advisory firm is well-equipped to assist in this process, provided the City is committed to committing a fixed set aside each year to fund its Policy. These policies have many elements, but this article focuses on the money piece. The Policy MUST require the City to budget and set aside a meaningful amount of money every year to bring down the unfunded liability. This means paying more than our normal plus amortization cost every year (aka the Actuarily Required Contribution or ARC).
Unfunded pension liability is a debt owed to CalPers on which we pay 6.8% annually, the amount CalPERS expects to earn on its investments. This is very expensive debt, even for a City barely hanging on to a BBB rating. It’s like keeping your credit card outstanding and paying the minimum while still running up expenses, using ever more of your regular income as your balance increases. Are there other ways to pay down this debt other than sending prepayments to CalPers in dribs and drabs (which, BTW, is still better than nothing)? Fortunately, yes.
This is where a Section 115 Trust comes in. Many of you are familiar with trust funds, heck, some of you may be living off one (marry my kid, please). A trust is a vehicle for segregating money for a specific use or person. California Employers’ Pension Prefunding Trust (CEPPT) is an IRC Section 115 Trust (commonly called a “115 Trust”) that public agencies establish exclusively to set aside money to prepay pensions. Once this money is deposited into the fund,it is legally segregated from general fund assets. The plan sponsor is the governing body, i.e., the City Council or an outside sponsor. This is key to its value and one reason it beats stashing the money in a general fund restricted reserve (which, see above, is ALSO better than nothing!). Once in the Trust, the money can only be used to pay down long-term pension and OPEB obligations (which would actually be two separate trusts).
What happens to the money in the 115 Trust? They can be invested with CalPers or with a third-party administrator. There are many third-party investment managers out there seeking this money that claim they can beat CalPers. A competitive process is generally held to hire an investment manager.
As some have pointed out, you can create a 115 Trust with a negligible initial investment. This is meaningless and the equivalent of doing nothing. If the City takes the time, and money, to create a trust which then carries a $0 balance for years, this is WORSE than doing nothing and would and should be used as evidence that the entire creation was a sham intended to make it LOOK like our fair City was committed to paying down its debt.
Step 2: Act: We are looking at YOU City Council!
Time to act. The only way to accomplish this and give it sticking power is to make the Policy Law. We are calling on the City Council to create a Pension Cost Management Committee charged with adopting a Pension Funding Plan. We are calling on FAB to make recommendations to the Committee and City Council for affordable but meaningful pension funding levels. We recommend that this be put in place and numbers finalized so that they can be included in the F.Y. 2023-24 City Budget and the long-range plan.
Hercules, a picturesque city in western Contra Costa County, California, may not be as well-known as some of its neighboring San Francisco Bay Area communities. Still, it boasts a unique and commendable feature that sets it apart from the El Cerrito —its commitment to fiscal responsibility and good governance. In this blog post, we’ll delve into the story of Hercules and its remarkable approach to managing its finances and public policies.
A City with a Difference
Located along the coast of San Pablo Bay, Hercules is positioned just 7 miles north of El Cerrito, making it part of the bustling San Francisco Bay Area. With a population of 26,016 as of the 2020 census, it is comparable in size to neighboring El Cerrito. However, once you scratch beneath the surface, you’ll find that Hercules stands out in several ways.
Hercules is much more efficient
Staffing Efficiency
One of the most notable distinctions between Hercules and El Cerrito is their staffing levels. Hercules operates with a city staff less than half the size El Cerrito’s. This lean approach allows Hercules to work more efficiently and significantly reduces its payroll and CalPERS pension costs.
Commitment to Fiscal Responsibility
Hercules understands that the decisions made today can have far-reaching implications for the future. To ensure responsible financial management, the city holds hearings for public comment on the budget, actively listens to its residents, and updates its economic forecasts as needed. These forecasts are crucial in guiding the city’s financial decisions and ensuring transparency.
Forecasting Policies
One of Hercules’ standout practices is its commitment to robust forecasting policies. Here are some critical elements of these policies:
Frequent Updates: The city maintains a five-to-ten-year Financial Forecast, updated biannually to account for unexpected economic changes or other circumstances.
Realistic Assumptions: Financial forecasts acknowledge economic cycles, differentiate between one-time and base economic growth revenues, and clearly identify the assumptions and associated risks.
Accuracy Targets: Revenue and expenditure estimates aim for a target variance of +/- 2 percent for revenues and +/- 1 percent for expenditures.
Site-Specific Development: On-going revenue increases from site-specific development are incorporated with realistic timing estimates.
Governance Matters
Perhaps the most significant difference between Hercules and El Cerrito is their approach to governance. The California State Auditor’s ranking is telling—El Cerrito received a modest score of 47.29 out of 100, while Hercules secured a much higher 73.29. This substantial gap is a testament to the power of governance, accountability, and transparency.
Another noteworthy distinction lies in the presence of a well-equipped library and a thriving senior center, both managed by City Management. It’s clear that Hercules not only exhibits superior management but also excels in catering to the needs of its community compared to El Cerrito. Perhaps Karen Pinkos could benefit from establishing a rapport with their City Manager to seek valuable insights and guidance.
A leaner El Cerrito
Let’s be crystal clear. EECRG isn’t calling for layoffs of union personnel. EECRG is challenging the City to determine the right size and shape for efficient service delivery and reduce staffing levels as needed through attrition, a reduction of top-heavy management and the introduction of introduction of rigorous performance standards for management.
Conclusion
Hercules, California, may not be the most prominent city in Contra Costa County, but it shines as a model of fiscal responsibility and good governance. By maintaining a lean staffing structure, committing to transparent financial forecasting policies, and embracing governance, Hercules has set itself on a path to a more stable and prosperous future. It’s a remarkable example of how intelligent decision-making and responsible governance can lead to success despite challenges.
El Cerrito could do the same but pretends all is well. The City of El Cerrito must establish a clear and transparent financial process, including the public and figure out a way to operate effectively in a leaner environment.
Here is how you can help:
– Share this post with other residents.
– Attend the monthly Financial Advisory Board meetings in person.
– Post on Next Door
– Voice your concerns.
– Council meetings are remote and in-person, but public comment is now limited to in-person attendees. If you want to contact City Council Members or the City Managers, all their emails are below:
Happy Thanksgiving from the El Cerrito Committee for Responsible Government!
As we gather with our families and friends to celebrate Thanksgiving this year, we at the El Cerrito Committee for Responsible Government want to extend our heartfelt appreciation to each and every one of you – our valued readers and supporters.
This year has been a remarkable journey for us, and it wouldn’t have been possible without your continued readership and support. Your engagement, feedback, and active participation in our community initiatives have been the driving force behind our efforts to foster responsible governance and community involvement in El Cerrito.
Thanksgiving is a time to reflect on the blessings and joys we share. We’re deeply thankful for the growing community of readers who have joined us in our mission to promote transparency, accountability, and positive change in our local government. Your trust and involvement inspire us every day to work harder and bring more meaningful content and initiatives to the forefront.
As we enjoy this season of giving thanks, we are reminded of the strength and resilience of our community. It’s your unwavering commitment to making El Cerrito a better place that motivates us to keep pushing for excellence in governance and community service.
We’re excited about what the future holds and look forward to continuing this journey with you. Your voices and perspectives are crucial in shaping the direction of our community, and we encourage you to stay engaged, informed, and proactive.
Once again, thank you for being an integral part of the El Cerrito Committee for Responsible Government. We wish you and your loved ones a joyful, peaceful, and blessed Thanksgiving!
After substantial public pressure, El Cerrito has released selected findings from the library survey. The results reveal significant concerns about the city’s management and financial planning, particularly regarding the library project.
Key Survey Findings:
Library Project Cost vs. Funding Gap: The projected cost for the library stands at $21,214,000, but identified revenue sources cover only $2,500,000.
Declining Resident Satisfaction: Compared to May 2019, fewer residents are satisfied with the quality of life and the City’s services in El Cerrito.
Dissatisfaction with Public Funds Management: Only 45.6% to 53.6% of residents feel satisfied with the City’s handling of public funds, while 27.0% to 32.9% express total dissatisfaction.
Limited Support for Parcel Tax: Just 32.2% of surveyed residents would definitely support a parcel tax initiative.
The survey results suggest a lack of confidence in the City’s management and transparency, especially in financial matters. Despite having a Finance Director, consultants, and a fully staffed department, the City has been criticized for not providing accurate and complete information.
Library Financing Options: A Closer Look
The City Manager has proposed four potential financing options for the library project, three of which are deemed insufficient:
Existing General Fund and Reserves: Currently woefully inadequate to fund the project.
Private Placement Financing: Challenging to secure due to a BBB bond rating.
State Library Infrastructure Grant: Covers a maximum of 50% of the costs.
The “Forever Tax” Ballot Measure: The only option that could fully fund the library.
EECRG argues that the City Manager has offered non-viable options, leaving the ballot measure as the only feasible choice.
Financial Analysis and Further Questions
The City has yet to disclose a comprehensive financial analysis of the library project. Also, the survey presentation includes two charts that highlight the stark contrast between the project’s expenses and the potential sources of revenue. Additionally, the parcel tax rate has been increased from 10 cents to 17 cents per square foot without explanation.
In March 2023, public funds were used for El Cerrito entered contracts with Gobe Research and Reynolds Strategies for voter research and bond measure strategy planning, totaling $74,775.
BREAKING NEWS: Contracts and Mayoral Transparency Issues
Questions arise regarding library discussions and the mayor’s transparency. In February 2023, the City’s attorney raised concerns about Mayor Lisa Motoyama’s potential conflict of interest in her consultancy role. When the City Attorney Sky Woodruff wrote to the State of California Fair Political Practices Commission, he posed four questions to the commission:
1. May Mayor Motoyama participate in City Council discussions and decisions related to placing a measure on the ballot seeking voter approval for funding a new library in one of the Plaza BART Project affordable housing buildings if she does not participate in other decisions involving the agreement between the City and the Development Team or BART to acquire the property for the library?
2. If the City acquires the necessary property for the library from BART and the necessary funds upon the approval of the related ballot measure, may Mayor Motoyama participate in City.
3. May Mayor Motoyama participate in City Council decisions related to the formation of an enhanced infrastructure financing district(“EIFD”) and inclusion of the Plaza BART Project property in the district?
4. May Mayor Motoyama participate in City Council decisions involving the City’s on-street parking program in the vicinity of the Plaza BART Project?
On July 12, 2023, the Commission responded to the City’s attorney. Here’s an excerpt:
“Under Section 1091(b)(1), Mayor Motoyama has a financial interest in contracts related to the Plaza BART Project resulting from her remote interest in her nonprofit employer, when a client of her nonprofit firm is also a member of BART’s Development Team. Accordingly, she is prohibited from participating in decisions related to the City’s potential contract with BART including City Council decisions related to the ballot measure seeking voter approval for funding for a new library, an essential preliminary step in reaching an agreement with the Development Team or BART to acquire property for a new library.”
EECRG has several concerns:
Timing of the Mayor’s Inquiry: The discussions about the library have been ongoing for an extended period. What prompted the Mayor to seek clarification regarding her role in the library project specifically in February, after years of ongoing discussions? This inquiry seeks to understand the factors influencing the timing of her decision.
Initial Non-Disclosure of Conflict: Given the importance of transparency in public office, it is crucial to question why the Mayor did not disclose her potential conflict of interest at an earlier stage. What were the circumstances or considerations that led to the delay in this disclosure? This query aims to explore the reasons behind the initial withholding of information that could be perceived as a conflict of interest.
Continued Non-Disclosure Post-Advisory: Following the official advisory in July about the conflict of interest, the Mayor chose not to disclose her conflict. What were the reasons or motivations behind the Mayor’s decision to maintain non-disclosure, even after being formally advised of the conflict? This question seeks to delve into the rationale behind the Mayor’s continued non-disclosure, examining the implications of this choice on public perception and trust.
Legal Remedies to Compel Disclosure
As you may recall, EECRG has found free legal resources and will be pursuing this further to compel the release of work product funded by tax dollars. They gave us some sage advice. First, they said “The CPRA exempts from disclosure “[p]reliminary drafts, notes, or interagency or intra-agency memoranda that are not retained by the public agency in the ordinary course of business, if the public interest in withholding those records clearly outweighs the public interest in disclosure.” Govt. Code § 7927.500.
To justify this exemption, the agency must generally prove each of its “statutory conditions”: “(1) The record sought must be a preliminary draft, note, or memorandum; (2) which is not retained by the public agency in the ordinary course of business; and (3) the public interest in withholding must clearly outweigh the public interest in disclosure.” Citizens for a Better Envt. v. Dept. of Food & Agriculture, 171 Cal. App. 3d 704, 711–12 (1985).
Not every “draft” necessarily qualifies for this exemption, the purpose of which “is to provide a measure of agency privacy for written discourse concerning matters pending administrative action” and to “foster robust discussion within the agency of policy questions attending pending administrative decisions.” Id. at 712–13. The exemption can cover “advisory opinions, recommendations, and policy deliberations” but not “compiled factual material or purely factual material” that can be segregated from exempt content. Id. at 713.
The agency must show the withheld records are in fact “drafts … produced in the course of a determinate process” that “results in administrative action,” and they must also prove their “policy and custom concerning retention of preliminary materials.” Id. at 713-14. “If preliminary materials are not customarily discarded or have not in fact been discarded as is customary, they must be disclosed.” Id.
In other words, the City cannot just claim immunity from releasing documents, the City must PROVE their assertion that they are immune from the law requiring them to release the documents.
Then, they took it one step further: If you determine that you would like to pursue litigation, the CPRA provides for legal action to enforce the right to inspect or copy public records. See Govt. Code §§ 7923.000, 7923.100.
In such litigation, a person prevailing against an agency in a CPRA case is generally entitled to recover costs & attorney fees. Govt. Code § 7923.115(a). An agency is not entitled to recover costs or attorney fees from a requester who brings suit unless the court finds the case is “clearly frivolous.” Govt. Code § 7923.115(b).
In litigation, an agency bears the burden of proof to justify withholding requested records. International Federation of Professional & Technical Engineers, Local 21, AFL-CIO v. Superior Court, 42 Cal. 4th 319, 328 (2007).
In other words, in addition to the public embarrassment, the City would foot the bill for legal fees.
Conclusion
What else are they hiding? These findings from the library survey point to pressing issues in El Cerrito’s governance, financial management, and transparency, raising critical questions about the future direction of city projects and policies.
If you want to take action we would suggest writing the council people and asking for additional transparency regarding the outstanding questions and concerns. The library is on tomorrow’s City Council Meeting agenda and you will be able to comment in person.
For those who may not have seen it, EECRG is running this blog originally posted on September 29, 2022.
We previously shared a blog post a little over a year ago, and it has become increasingly evident that the City Manager is pursuing an independent agenda. Despite the 2020 findings of the State Auditor’s Report, she has persistently disregarded its recommendations. Moreover, on the rare occasions when she does engage with the Financial Advisory Board, she selectively disregards any advice that does not align with her plan.
Significant City matters are placed on the consent calendar or omitted from the agenda to minimize public discussions.
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The City Manager and the Mayor set the agenda for each council meeting. Things that are put on the consent calendar get passed all at once. Often this is for items like proclamations etc but in recent El Cerrito history it was also used to pass the September response to the state auditor. Council members can pull something off of the consent calendar though I am uncertain as to whether there needs to be a vote to do this or not.
The agenda for September 20, 2020 has a few financial issues on the consent calendar. The one I will discuss today is Item 5J. You can find the memo on this on page 171 of the packet. First the background. The California State Auditor specially called out “Ineffective Budget Development and Monitoring Practices Drive Overspending.” (CA State Auditor Report page 18 of 64) There is a long discussion as to reasons behind this assessment. At the end the many recommendations were made including the following:
• “To ensure accountability in monitoring the budget, city management should present monthly updates to the city council on the current status of departmental budgets and comparisons to prior-year budgeted and actual amounts. City management should promptly seek approval from the city council of proposed budget adjustments by departments when warranted. City management should also prepare and provide to the city council supporting documentation to justify any proposed budget increases.” (CA State Auditor Report page 24 of 64)
Bold is EECRG
If you read the City Manager’s Report she made the recommendation for the change to the Comprehensive Financial Policy not the Financial Advisory Board (FAB). This change stops the monthly reports the State Auditor recommended and changes the reporting to quarterly. She reports she brought this to FAB in April 2022 (where it failed by a 2-2 vote). She then brought it again to them again on June 26, 2022. At that time, the City Manager was advised that the policy does not incorporate the State Auditor’s recommendations and relaxes the requirement for monthly reporting, which directly opposes the State Auditor’s recommendations. The City Manager’s memo states
“At the August 23, 2022 FAB meeting, staff again presented this proposal and shared their concerns with the FAB that with the current staffing situation in the Finance Department and City Manager’s office, at this time monthly reporting is not achievable. Further, City Council has been receiving quarterly reports over the past fiscal year as advised by the City Council adhoc subcommittee. While the original language proposed to the FAB by staff does not preclude the City Council requiring more frequent reporting as long as it is “no less than quarterly”, staff suggested including additional language to clarify that “Reports may be required on a monthly basis by the City Council if they deem it necessary to more frequently monitor the budget.” The FAB again discussed concerns about the frequency of the reporting to the City Council, and did not approve a recommendation by a 3-2 vote. The FAB did not consider or provide an alternative recommendation to send to the City Council.” (City Council packet for 9/20/22 page 172/233)
3. “To conduct an annual review of the city’s comprehensive financial policy and investment policy and make recommendations regarding the managing of the city’s financial reserves to assure maximum returns on approved investments;”
7.”To review the form and format of budget documents, agenda bills and other recurring financial reports prepared by the city and issue recommendations to the city council and the city manager regarding how the form and format of these documents may be modified to allow for greater clarity in the manner financial information is reported.”
In this instance, the City Manager did her own review and recommendation of a revision of the Comprehensive Financial Plan without the approval of FAB and disregards/does not engage with FAB on the financial reporting they recommend.
The City Manager states in her memo that the City Council Ad-Hoc Committee, appointed to oversee the response to the state auditor, (consisting of Councilpersons Motoyama and Rudnick) have said it was okay to do quarterly reporting even though it contradicts the State Auditor’s recommendation. I want to note that later on the agenda Item 8B is this “FY 2021-22 General Fund Budget Quarterly Update through June 2022“. On September 20, 2022 the City Council is receiving a quarterly budget update for a period that ended in June. Quarterly reporting that happens 3 months after the quarter end becomes semi-annual reporting. We already know that the Council and Staff are not nimble in their responses. By the time Council is aware of any issues that arise it will be too late to address them. I understand that there have been continual complaints that they are understaffed in the Finance Department but after being on the State Auditor’s list for multiple years it should be a Council and Staff priority to get off the list and stay off of the list.
If you want to take an action I would suggest writing the council people and asking this item be removed from the consent calendar and discussed fully.
In March 2023, El Cerrito entered into contracts with both Gobe Research and Reynolds Strategies. One was for a contract for a research survey of El Cerrito voters, and the second was to assist the city with planning a strategy for a library bond measure. One contract was for 34,775 and the other was for 40k. As of the end of October 2023 all of the money had been disbursed with the exception of the last 5k on the bond measure.
The contract with Gobe for the survey states there is to be a report delivered to El Cerrito and both contracts state all materials produced belong to the city.
More than one of us has put in requests to the City Clerk for information in relationship to the work product provided for 70k of tax payor money. While the City Clerk has given access to monies paid and the signed contracts, she refuses to release any work product.
She states
“ The following records are exempt from disclosure:
1. Records that contain information that is exempt under California Government Code Section 7922, as “the public interest served by not disclosing the record clearly outweighs the public interest by disclosure of the record.” This exemption includes, without limitation, the deliberative process privilege, which prohibits the disclosure of information reflecting deliberative or decision-making processes by and between public officials.
2. Records that are “preliminary drafts, notes, or interagency or intra-agency memoranda that are not retained by the public agency in the ordinary course of business” and “the public interest served by not disclosing the record clearly outweighs the public interest by disclosure” under California Government Code Section 7927.500. “
This is saying that either public interests is better served by keeping the secure of what our 35k of taxpayer money paid for or that the company did not give them a final work product for the 35k.
Not sure which of those is worse.
We have been a bit stuck as to our next steps because sadly CA has no mechanism to force disclosure other than court. And the City knows we don’t have the money to hire a lawyer.
However, we have found free legal resources and will be pursuing this further to compel the release of work product funded by tax dollars. Maybe it won’t show anything surprising but given the level of resistance to releasing the information we suspect there is something in there worth hiding.
Stay tuned! And community you are getting the government you have repeatedly voted in despite our warnings. Please pay attention and share this article and encourage others to run and support non-democratic club endorsed candidates.
You just re-elected Gabe Quinto and elected Carolyn Wsyinger. Gabe Quinto has been a particular impediment to transparency for the city. Ms Wysinger confuses us because she has no grasp on the financial issues that we can see nor does she seem to have any interest in doing anything that is not connected with getting her picture taken.
In 2024 Paul Fadelli, Tessa Rudnick and Lisa Motoyama are all up for election.
Please consider running against them in the next election. Until we get someone on the council that is not part of the machine the council will govern as it always has. In secret and fiscally irresponsibly.
El Cerrito’s Tax Dilemma: A Call for Accountability and Transparency
El Cerrito boasts one of the most robust tax bases in California, yet there’s an ongoing push for even higher taxation. Alongside this, questions arise about the city’s responsible use of the previously approved taxes.
Sales Tax in El Cerrito As of October 2023, El Cerrito’s combined sales tax rate is 10.25%* encompassing state, county, and city tax rates. This places El Cerrito among the cities with the highest sales tax in California yet the city struggles to align expenses to this high tax base.
Understanding Property Tax California sets the foundational property tax rate at 1%, giving homeowners a straightforward method for estimating potential property taxes. However, the actual tax rate may vary throughout the city.
To determine property tax, properties are periodically appraised to establish their fair market value. Facto s influencing appraisals include:
Comparative property sales in the vicinity.
Distinct property features, such as pools or garages.
Despite fluctuations in market value, a property’s assessed value can increase only by up to 2% annually unless there are significant alterations or ownership changes.
Example: A 2-bedroom home in El Cerrito with a garage valued at $450,000 and a tax rate of 1.11% would have an annual property tax of $4,995.
Real Property Transfer Tax (RPTT) El Cerrito has a history of promising to spend the money for a specific purpose and then allocating the revenue into the general fund for multi-purpose use.
Since January 14, 2019, El Cerrito has imposed a 1.2% RPTT on property sales. For instance, a property sold for $1.5 million results in a $18,000 tax for the city. The City has collected more than $14 million in revenue since 2020 – enough for 2/3 of the estimated cost of a new library.
Although this tax was promoted to support local amenities, the senior center was defunded, and now there’s a push for a new library paid for by NEW TAX MONEY.
Seeking Greater Transparency Recent City Council meetings have highlighted discrepancies in financial reporting, with significant financial items omitted from Council and public discussions. The City Manager’s approach of presenting budgets to the Financial Advisory Board without ample time for proper review and refusal to allocate time for adjustments also raises significant concerns.
The City Clerk, acting as El Cerrito’s primary information custodian, appears selective about the information released under the Freedom of Information Act. This selectivity often favors the city’s image, sparking concerns about transparency, accessibility and alignment with California law.
Additionally, the Council has rescheduled discussions for the library, initially set for November 7 to November 21. Notably this falls during Thanksgiving week, when many El Cerrito residents may be preoccupied with holiday preparations or travel plans, potentially missing out on the critical discussion.
Fiscal Concerns Beyond transparency issues, there’s the overarching problem of fiscal mismanagement.
The City has not been fiscally responsible in over a decade, sending the City to the brink of bankruptcy, avoiding and ignoring public input and constantly circumventing the Financial Advisory Board by not presenting relevant matters for consideration. Then, the City turns to taxpayers for ongoing day-to-day operations that should be part of the budget, like the library and senior center.
The City has recently seen an uptick in its bond rating, moving from BBB- to BBB. While this has been touted by the City as a significant achievement, it’s essential to put this in context. When the current City Manager assumed her position, the City boasted an AA- bond rating. Regrettably, during the initial years of her leadership, this rating declined to BBB-. To offer further perspective, a BBB- rating is just a notch above junk bond status. So, while a shift to BBB is a step in the right direction, it’s crucial to recognize there’s still a considerable way to go.
Also noteworthy: the slight improvement was compliments of the Federal Bailout temporarily balanced the budget and added to the general fund – not fiscal prowess as City leadership suggests.
BBB has the second-lowest rating
There’s a looming $85 million unfunded pension liability that has been ignored. The City Manager has depleted reserves half the GFOA recommended amount, leaving the city with few options if expenses exceed revenue.
Still, there’s no Senior Center; they want us to pay $21 million for a library for a city with 25,000 residents.
A Need for Better Leadership El Cerrito’s leadership needs to address these concerns head-on rather than ignoring them. Actual progress will only come with transparency, responsible fiscal management, and genuine leadership that serves the interests of its residents.
If the City Manager focused on core city responsibilities and prioritized public engagement instead of spending time and resources on frequent trips, our city would undoubtedly benefit.
Help bring awareness to the El Cerrito happenings:
– Share this post with other residents.
– Voice your concerns. Write to the city clerk at cityclerk@ci.el-cerrito.ca.us and ask that your comments be added to the next board packet.
– Report on Next Door
– Council meetings are remote and in-person, but public comment is now
limited to in-person attendees. The City Council meeting will be on November 7.
– If you want to contact City Council Members or the City Managers, all their
Carol Bartz, who became the CEO of Yahoo in 2009, stirred controversy by warning her staff against leaking company secrets to f-king Mars suggesting she would take extreme measures against any leakers. The Board said Nothing.
However, after overseeing three challenging years with minimal growth at Yahoo, she stepped down in 2011.
In 2013, Jim Hagedorn, the CEO and Chairman of U.S. multinational Scotts Miracle-Gro, came under fire for his choice of words during an investor’s meeting. His notable profane comments included claims about the company’s substantial earnings and frustrations with political proceedings in Washington. Following the board’s admonishment, Hagedorn admitted his choice of words was ill-advised, stating, “Although I sometimes use strong language, I realize my remarks were inappropriate in this instance and I apologize.”
Julie Logan, a professor emeritus of entrepreneurship at City University’s Cass Business School, highlighted the implications of using inappropriate language in leadership roles. She said “A leader sets the tone, and it’s essential to maintain a level of decorum.
The state of California has a higher standard. An employee’s acts constitute misconduct if the employee addresses a coworker on the job in vulgar, profane, abusive, obscene, derogatory, or offensive language of a vile nature if the language is . . . not within the normal exchange and customary good-natured banter between employees.
Earlier this month, the City Manager’s blunt and profane comment (caught on a 🔥 mic) telling a direct report to STFU has yet to elicit a public response or reprimand from the Council, raising questions about the acceptability of such behavior.
The City has been actively committed to condemning hate and hate speech while also ensuring the protection and well-being of El Cerrito residents. However, the City’s silence in response to the City Manager’s profane outburst is inconsistent with these efforts and raises concerns about the organization’s commitment to its values and the community it serves.
The City Council of El Cerrito must step up and address the concerns. The employees and residents of El Cerrito deserve transparent and proactive leadership. It’s (past) time for a response.
Share this post with other residents.
– Voice your concerns. Send an email to the clerk by Thursday noon and require them to add it to the packet cityclerk@ci.el-cerrito.ca.us
– Repost on Next Door
– Council meetings are remote and in-person, but public comment is now
limited to in-person attendees. The City Council meeting will be on November 7.
– If you want to contact City Council Members or the City Managers, all their
El Cerrito Committee for Responsible Government (ECCRG) 