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HomeMy WebLinkAboutMinutes - City Council - 2006-02-13 - Special Meeting 35 City Council, Special Meeting Council Chambers 777 Cypress Avenue Redding, California February 13,2006,6:3:0 p.m. The meeting was called to order by Mayor Mathena with the following Council Members present: Dickerson, Murray, Pohlmeyer, and Stegall. I Also present were City Manager Warren, Assistant City Manager Starman, Deputy City Manager Bachman, City Attorney Duvernay, Finance Officer Strong, City Clerk Strohmayer and Assistant City Clerk Sherman. MID- YEAR BUDGET REPORT AND BUDGET RESOLUTION (B-130-070) Deputy City Manager Bachman provided an overview of the Mid-Year Budget Report explaining that the report focuses primarily on the General Fund but also provides information on the City's enterprise funds. He said that due to some state take-aways and rising health insurance and retirement costs, staff recommends increasing expenditures by $180,530 in Fiscal Year Ending (FYE) 2006 and by $158,200 in FYE 2007. However, the City recently received its Public Employee Retirement System (PERS) rates for FYE 2007 which decreased significantly over staff s estimate and will result in a $1.292 million savings beginning in FYE 2007. Increases in utility fund appropriations of $862,300 in FYE 2006 and $290,570 in FYE 2007 are also recommended. I Mr. Bachman explained that over all, revenues are trending as expected but General Fund revenues are higher than estimated. Due to an earlier-than-anticipated state repayment of $1.453 million in motor vehicle in-lieu fees, staff recommends increasing revenues by $3 .389 million in FYE 2006, but decreasing revenues by $321,000 in FYE 2007. He reported that sales tax revenue continues to grow at double digit rates which is higher than anticipated by staff, and only recently demonstrated a slight decline. It is estimat~d that the General Fund will end Fiscal Year 2005-06 with a reserve of 13.7 % which will not. fall below 5 % during the ten-year forecast period. Property tax revenue is $1.3 million higher than expected, but $400,000 in vehicle license fees must be deducted from that amount. Mr. Bachman pointed out that the General Fund is expected to end the budget period of June. 30, 2007, with $3 + million more in reserves than previously anticipated. When these . changes are included in the modelthat produces the Ten Year Plan, the City has the capacity to add approximately $1.8 million in ongoing expenditures and still maintain a reserve of at least 5 %. This $1.8 million is available for the City Council to apply to any of the City's well-known capital projects (which will be discussed later in the agenda) or, Council may opt to leave the money in the General Fund Ten Year Financial Plan (Plan). Deputy City Manger Bachman recommended that the City Council accept the Mid-Year Budget Report and adopt the associated budget resolution. I Aaron Maready, President of the Redding Police Officers' Association (RPOA) urged the City Council to demonstrate a strong commitment to a safe community by placing City needs above wants. He related that the Redding Police Department continues to experience attrition within its ranks and only minimal interest exists for individuals to relocate to Redding and serve on the Department. Mr. Maready asserted that it is the responsibility of the City Council to ensure public safety and that it must continue to be a top priority. MOTION: Made by Council Member Stegall, seconded by Council Member Pohlmeyer accepting the Mid-Year Budget Report and adopting Resolution No. 2006-19, a resolution of the City Council of the City of Redding approving and adopting the 2300 amendment to City Budget Resolution No. 2005-77 appropriating $1,192,830 for fiscal year 2005-06 and reducing appropriations by $837,220 for fiscal year 2006-07 as part of the Mid- Year Budget Review. The Vote: Unanimous Ayes. Resolution No. 2006-19 is on file in the Office of the City Clerk. 2/13/2006 36 FUNDING MAJOR PROJECTSIPROGRAMS (B-130) Deputy City Manager Bachman related that as discussed during the previous agenda item concerning the Mid-Year Budget Review, a number of positive factors affecting the General Fund made it possible to add approximately $1.8 million in ongoing expenditure funding. This $1.8 million is a~ailable for th~ City Council to apply toward capital projects or leave in the General Fund Ten Year Financial Plan. Mr. Bachman advised that should the City Council determine that it would like to apply some or all of the $1.8 million to these projects/initiatives, needs and wants, a Tiered ProjectlProgram list has been developed (depicted below) for Council consideration. He explained that Tier 1, briefly depicts changes to the 2005-07 Biennial Budget and the Ten- Year Financial Plan as presented earlier this evening. Tier 2 is comprised of stated City Council priority projects or initiatives which should be considered for funding given the newly-identified availab~e resources. Lastly, he said that Tier 3 represents additional items contained in the Biennial Budget and/or General Fund Ten-Year Financial Plan which have been discussed or considered by Council, but which would require additional General Fund resources. Mr. Bachman related that if the Tier 2 projects are funded as recommended, $535,000 in unallocated funding remains and can be applied to projects in Tier 3 as the City Council may direct. I Project/Program Funding Funding Effect on Total Needed Need~d to-Year Ongoing One-Time Ongoing Plan Resources Available Tier t Included Included $ -0- $ 1,800,000 Tier 2 Police Administration (Phase 2) $ 150,000 $ 23,438 $ 1,776,563 Police Contract $ 290,000 290,000 1,486,563 Redding Socc~r Park 1,820,000 284,375 1,202,188 Stillwater Business Park 667,000 667,000 535,188 Tier 3 BMX Park $ 100,000 $ 15,625 $ 519,563 California Horse Park 7,000,000 1,093,750 (574,188) Convention Center Master Plan 150,000 23,438 (597,625) Fire Personnel $ 250,000 250,000 (847,625) Library Operations 170,000 170,000 (1,017,625) Police Administration (Remainder) 2,000,000 2,000,000 (3,017,625) Police Beat 360,000 360,000 (3,377 ,625) SART Team 40,000 40,000 (3,417,625) Street Maintenance 5,000,000 5,000,000 (8,417,625) Veterans Plaza 90,000 14,063 (8,431,688) Youth Task Force 150,000 50,000 73,438 (8,505,125) I PROJECTS NOT UNDER CONSIDERATION AT THIS TIME \ Riverfront Plavhouse (A-050-060) Mary Forbes of the Riverfront Playhouse (Playhouse) commented that while the Playhouse was not on the list or projects forfun~ing consideration, she recalled that it received a No.2+ priority ranking at the City Council's Priority Setting Meeting in April 2004, with the I understanding that creation of a theatre district in the Downtown could move the Playhouse to a No.1 ranking. She said that Playhouse members have identified a property in the Downtown area suitable for its needs and have begun designing the project and campaigning to raise money. She urged Council to remember the Playhouse during funding considerations. Downtown Revitalization (H-150) . Kelly Anthis of Viva Downtown, Jim Koenigsaecker, CEO for Habitat for Humanity, local architect James Theimer, and Dave Ercolanci urged continued financial support of the Downtown area, citing passed accomplishments and events in the Downtown area which helped to spawn community involvement and interest in the area. They also cited 2/13/2006 37 opportunities for affordable housing projects such as the Downtown 300, and opportunities for the sale of surplus property to generate revenue which could be used to fund other projects. TIER 2 PROJECTS I Stillwater Business Park (E-050-500) Frank Strazzarino, CEO ofthe Greater Redding Chamber of Commerce and Cheryl Calhoun, Chair of the Economic Development Corporation of Shasta County supported the Stillwater Business Park Project as the number one priority for the community which will serve as a catalyst for higher-paying jobs, economic diversity and create a "domino effect" for local businesses. Wally St. Clair, Redding resident, urged support for the Stillwater Business Park recalling a similar project in Cheyenne, Wyoming which attracted 14 tenants who purchased 600 acres of a 900-acre park within a year of its opening. He said these same businesses hired approximately 3,000 employees and had a positive impact on the community. He predicted that Stillwater will be a bigger success than anticipated. After some discussion, it was the consensus of the City Council that all Tier 2 projects be funded as depicted in the above chart. TIER 3 PROJECTS I BMX Park (P-050) Nick Scoma, Leonard Burdan, and Coleman Webb said there is a growing need for a BMX Park in Redding. They observed that individuals are not permitted to ride bicycles at the Skate Park and the facility is very overcrowded. They also indicated their willingness to perform fundraising to construct the Park but requested some 'start-up' money from the City. Council Member Dickerson complimented the BMX promoters for their initiative and willingness to perform much of the work themselves while seeking assistance from the City. Mr. Murray suggested that the BMX Park (as a park) should be presented to the Community Services Advisory Commission. I California Horse Park (E-050) The following individuals spoke in support of the California Horse Park project citing economic benefits to the community such as significant increases to sales tax and Transient Occupancy Tax (TOT), the creation of a ripple effect for goods and services to merchants inside and outside the City, a draw for businesses and investors to the area, the flexibility of the facility to host non-equine related events such as dog shows, concerts, tractor pulls, art and craft fairs, and other wholesome, healthy activities for youth, additional trails for area residents, preservation of open space, an opportunity to capture a portion of the $38 billion a year horse industry, the lack of suitable horse facilities in an area with a significant horse population and a potential site for relocating the Redding Rodeo Association and annual Redding Rodeo: Tom Spade, Steven Concepcion, Susan Weale, Lisa Torgersen, Mary Twining, Sarah White, John Steiner, Melissa Chatham, Sylvie Chatham, Dee Hatela,Jeanann Popejoy, Dee Hawes Hatch, Wendy Johnston, Kristen Marelich, Cindy VanSchooten, Ellis Farstedt, Rebecca Andrews, Dan Chapman, Ruth Carrero, Ralph Darrow, Dave Scott, Mike Quinn, Bob Ekin, Greg Norby, Bruce Alexander, Jim Gironda and Sam Cannel. Mike Van Bockern and Michael Czehatowski spoke in opposition to the City's funding of the Horse Park believing it to be a risky proposition and a potential burden to the taxpayers for ongoing debt service. Council Member Pohlmeyer thanked the Horse Park committee members for their efforts and for the report, but pointed out that sales tax growth and TOT cannot be guaranteed. He believed it to be a great project, but also f~lt that the money to fund it must come from other areas such as private investors. Mr. Pohlmeyer stated that the City may be in a better place 2/13/2006 38 financially in the future to assist with infrastructure for the project and relocation of the rodeo grounds, but City assistance must be limited and should not be projected for the next 30 to 40 years. Council Member Stegall concurred with Council Member Pohlmeyer's observations with regard to General Fund assistance and intangible sales tax and TOT projections, but stated she was willing to continue discussions. She questioned the County's willingness to invest in the Park, and she expressed concern regarding McConnell's reluctance to allow private investors to contribute. Ms. Stegall believed that the City of Anderson and other groups and organizations should be invited to participate in some way, and she expressed skepticism that the City could qualify for a bond measure since it will not own any of the Horse Park assets for use as collateral. I Council Member Mathena s~id the Shasta County Board of Supervisors has pledged $1.8 million to the project provided it does not impact the County's General Fund. He observed that the debt service alone would affect the City's General Fund and said he did not support the McConnell Foundation's proposed financing mechanism because of the significant amount of money that will be encumbered over an extended period of time. Council Member Dickerson observed that the focus appears to be on the project's potential for success. While he was convinced about the revenue potential, but he believed that emphasis must be placed on how to finance the project, how the City can participate, and how the project can be funded without impacting the General Fund. Mayor Murray recalled the City's participation in the Sundial Bridge wherein the City set a finite contribution amount and allowed the McConnell Foundation to build the type of bridge it envisioned with the understanding that no additional money would be coming from the City. He believed that the City should be an active partner in projects that benefit the community, but only to the extent it is financially feasible. Mr. Murray also believed that a number of non-General Fund funding options exist, and he suggested that the issue be returned to staff to develop those options and return to Council within sixty (60) days for consideration. Council concurred that the City's participation in the Horse Park fall within the following parameters: 1) There will be no impact on the General Fund, 2) the City will not issue bonds, 3) other priority projects such as the Stillwater Business Park, the Library or the new police building will not be jeopardized, and 4) the City's monetary contribution will be limited and finite. I Council Member Di<;;kerson suggested that staff be directed to enter negotiations with representatives ofthe M<;:Connell Foundation, Shasta County and the California Horse Park Committee and, acting within the parameters specified above, return within a reasonable amount of time with a report identifying funding options for Council consideration of the project, and that Mayor Murray and Council Member Stegall be appointed to serve as Council representatives to said negotiations. Convention Center Master Plan (C-050-050 & C-050-560) Leo Graham, past member of the Community Services Advisory Commission (CSAC) and Jason Waybright, current meIT,lber of CSAC, urged support for the recommendation regarding park funding cont,ained in the Report to City Council dated February 9, 2006, incorporated herein by reference, but expressed concern that the Redding Rodeo grounds may be sold before the Commission can complete the master plan for the Convention Center I and Rodeo Grounds area. They also urged Council to reserve riverfront property for public recreation. Fire Personnel (P-150-070) Fire Chief Fry commented that all the projects listed are worthwhile but concurred that public safety should always be a top priority. He recalled that when Fire Station No.8 opened in the northeast section of Redding, personnel had to be shifted from Fire Station No.5 to staff the new facility. Mr. Fry observed that the City now encompasses sixty (60) square miles, and a major fire tests the limits ofthe Department's ability to fight the fire and adequately staff the fire houses to ensure that the City is fully protected. He commented that this is a two- 2/13/2006 39 decade old problem that worsens as the City grows and it can't be corrected overnight. He explained, however, that even small steps forward will result in incremental improvements overtime. Council Member Dickerson said that funding the police beat is a necessary expenditure but he added that something must be done soon to address the severe staffing shortage at the Fire Department. I Library Operations (L-050) James Finck, YMCA and member of the Library Task Force, urged support for the new Library and also thanked Council Members Stegall and Dickerson for their hard work and ) dedication to the task of developing a governance plan for the facility. He pointed to many individuals in the audience who came to urge support for the Library and cited its immeasurable value to current and future generations. Mr. Finck said there are currently 57,000 users, and he predicted that the number will continue to grow. He urged that Library operations remain a top priority. Police Administration. Police Beat (A-050-270 & P-150-150) Police Chief Moty reported that the proposed new police building is sorely needed. The current 35,000-square-foot facility is extremely overcrowded which impacts the Department's ability to be as efficient as possible and accommodate growth. He said the new 51,000-square-foot building will not only provided the needed space, but also be designed to present a more aesthetically pleasing image to the public utilizing windows and open spaces. I Mr. Moty reported that response time has increased by 35 %, calls for service have increased 15 %, and the crime rate rose 50 %. As the City grows, the Department continues to respond to farther outlying edges of the City and new beats must be developed to cover the growth. He pointed out that each new beat requires a minimum of four officers to adequately cover the beat. Chief Moty commented that the safety of residents must be a top priority. Sexual Assault Response Team (SART) (P-150-150) District Attorney Jerry Benito and Maggie John urged Council support for the SART program explaining that this project is fast disappearing due to the lack of funds necessary to hire health professional (nurses) trained in SART procedures. These individuals have extensive training to perform exams on rape victims and follow strict protocol in gathering evidence necessary f9r prosecution of dangerous rapists. Mr. Benito said that while this program is a County responsibility, nearly two-thirds of the County's rape victims fall under the jurisdiction of the Redding Police Department and local hospitals can no longer fund this program. Mr. Benito and Ms. John asked the City to partner with Shasta County to help provide adequate funding to ensure that trained professionals are available for this program. Street Maintenance (S-070-200) Council Member Mathena commented that street maintenance is not a project but an ongoing City responsibility. He suggested that whenever funding permits, money should continue to be put toward streets. I Veterans Plaza/Memorial/Grove (P-050-475) John Cleckner and Greg Raffa provided a brief history of the Veterans Grove. They explained that the Veterans Memorial Grove is in poor condition; overgrown with weeds and dead trees, this area makes a poor first impression when entering the Turtle Bay Exploration Park. They expressed a willingness to once again work with the City to keep the area well maintained and a source of pride for area veterans. Gary Taylor, on behalf of the Crusaders (a local handicapped aQvocacy group), explained that improvements to the Veterans Memorial Grove are badly needed. He pointed out that there is no wheelchair access to the Grove and those in wheelchairs are forced to remain in the parking lot during ceremonies or when visiting the area. 2/13/2006 40 In response to Council Member Mathena, Support Services Director Kersten indicated that park maintenance staff will do as much as possible to assist with the problems at the Veterans Memorial Grove. Deputy City Manger Bachman responded that the City has a special projects fund and could possibly contribute $30,000 toward the Grove. Mayor Murray suggested that this project be reviewed to determine its eligibility for Americans with Disabilities Act (ADA) funds. Mavor's Youth Task Force (B-080-600- 300) Susan Wilson, representing the Health Improvement Partnership, Tom Armelino, and Robin Glasco expressed support for the Mayor's Youth Task Force and the "40 Developmental Assets." They urged Council support for the Task Force to ensure that the voice of the youth is heard, and believed that a good media program could help spur interest. They thanked City Council for m~king this a top priority. I Council Member Pohlmeyerwas not clear on what the Youth Task Force Project entailed and pointed out that many organizations throughout the community such as the YMCA, PlusOne Mentors, Girl and Boy Scouts, the Cadet Corps, etc. are involved with and promote youth. He believed that if funding is available for the Task Force, it should be channeled to existing groups instead of new programs. Mayor Murray strongly supported formation of the Youth Task Force and pointed out that selling some of the City's surplus property could generate as much as $3 million which would help fund more needs and projects. Council Member Dickerson concurred that selling some of the City's surplus property could go a long way toward funding more of these worthwhile projects. MOTION: Made by Council Member Dickerson, seconded by Council Member Stegall approving funding for Tier 2 Projects as presented and approving funding for Tier 3 projects as follows: 1) Library Operations - $170,000 annually, 2) Police Beat - $360,000 annually, 3) Sexual Assault Response Team (SAR T) - one-time funding at $50,000,4) Mayor's Youth Task Force - directed staff to return to City Council with a method to provide funding, 5) California Horse Park - directed staff to enter negotiations with representatives from the McConnell Foundation, Shasta C,ounty and the California Horse Park Committee and, acting within parameters [(1) there will be no impact on the General Fund, (2) the City will not be required to issue bonds, (3) other priority projects will not be jeopardized, and (4) the City's monetary contribution will be limited and finite], return within a reasonable amount of time with a report for Council consideration of the project, and appointed Mayor Murray and Council Member Stegall to serv~ as Council representatives to said negotiations. I PUBLIC COMMENT (B-130) Frank Jenkins, Redding resident, thanked the City Council and staff for providing this venue and an opportunity for the public to provide input into such important community issues. There being no further business, at the hour of 11:01 p.m.., Mayor Murray declared the meeting adjourned. APPROVED ATTEST: I ~~ City Clerk 1 2/13/2006