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HomeMy WebLinkAboutMinutes - City Council - 2007-06-21 - Adjourned Special Meeting 148 City Council, Adjourned Special Meeting City Council Chambers 777 Cypress Avenue, Redding, California June 21, 2007, 1 :30 p.m. The meeting was called to order by Mayor Dickerson with the following Council Members present: Bosetti, Jones, Murray and Stegall. Also present were City Manager Starman, Assistant City Manager Bachman, City Attorney Duvernay, Electric Utility Director Feider, Police Chief Moty, Development Services Director Hamilton, Transportation & Engineering Director Tippin, Fire Chief Fry Community Services Director Niemer, Support Services Director Kersten, Personnel Director Johnson, City Treasurer Detwiler, Finance Officer Strong, Information Technology Manager Zempel, City Clerk Strohmayer and Assistant City Clerk Sherman. I City of Redding's Biennial Budget for Fiscal Years 2007-09 - Part II (B-130-070) Police Department Police Chief Moty related that the proposed budget for FY 2007-08 is $25,193,010 and for 2008-09, it totals $26,484,190. He provided a brief power point presentation covering calls for service from 2002 forward with associated response times, arrests, gang-related activities and staffing issues. With regard to staffing issues, Chief Moty said that the Department would like to develop a staffing plan to cover the next 15 years. This would allow the City to add personnel incrementally so that development and community growth do not negatively impact response times which currently average eight minutes. He said that the current budget proposes to move two grant-funded officers to regular-paid officer positions and has sufficient resources to fund two additional officers only through January 2009. He added that this will drop the "officers per 1,000 resident" ratio. Council and staff discussed the proposed new police administration building with Council Member Stegall favoring a sales tax initiative to fund the much-needed facility. Mayor Dickerson and Council Members Jones, Murray, and Bosetti while recognizing that the need is crucial, opposed a sales tax increase. I In response to Council Member Murray, City Manager Starman recalled that some strides toward a new police building have been made given limited funding. The site analysis has been prepared and staff is working with representatives in Sacramento regarding the U.S. Forestry building on Cypress Avenue. He advised that approximately $750,000 is needed to move to the next level which is the design phase, with a total project cost of$35 million in today's dollars. Mr. Starman added that the debt service on that amount would be approximately $3 million annually and those funds are not available in the Ten Y ~ar Plan or in this budget. Council Member Stegall emphasized that while additional funding options are being studied as a means of raising revenue to fund the police facility, she would like information regarding a sales tax increase to be included. She pointed out that Redding's population more than doubles in size during the day with people coming in from outlying areas to work and shop. She observed that the new facility must be built and it can be funded by Redding citizens alone or a sales tax increase where all those who use City services, infrastructure and retail opportunities pay their fair share. Council Member Murray observed that growth impacts public safety resources as well as infrastructure and he suggested implementation of a development fee for the Police Department similar to that recently approved for the Fire Department. I Council concurred that while a police development fee would not fund the entire $35 million project, it could help to move the process along and requested additional information and options including a development impact fee and an analysis of a sales tax increase versus no sales tax increase and,any other possibilities to fund the facility. There are no other significant issues. 06/21/07 149 Development Services Department Development Services Director Hamilton provided a brief power point presentation covering Permit Center, Planning, Building-Construction, and GIS mapping trends, major issues such as the need for a computerized permitting system, support for National Pollutant Discharge Elimination System (NPDES) regulator obligations, meeting industry standards for inspection services and meeting Council priorities. He said that while no new positions are being requested, two part -time positions are being eliminated from the Departmental budget which totals $7,042,920 in FY 2007-08 and $7,310,320 in FY 2008-09. I In response to Council Member Murray, Mr. Hamilton explained that a new automated tracking system would allow the public to access the permit processes online. He indicated that system and data conversions would cost approximately $800,000, staffing support would be $100,000 annually, records conversion and management, approximately $60,000 per year and ongoing direct support costs of $160,000, for a total of $1.4 million over four years for complete system implementation. Mr. Hamilton said that the four-year time frame was necessary to ensure that the project is done right. He explained that since there is no way to recreate old microfilm, the information it contains would have to be converted and made available. By performing preliminary work during the current budget cycle, staff will be prepared to budget for the necessary equipment and personnel in biennial budget 2009-11. While it is difficult to provide a return on investment (ROI) synopsis, Mr. Hamilton believed it would approximate $208,000 each year. He said that staff is proposing to add a 5% surcharge to permits to fund the new technology which would minimally impact current fees. Council Member Bosetti observed that increased customer satisfaction will also be realized and carries significant value and he favored moving forward with an automated tracking system. There are no other significant issues. I Transportation & Engineering Department Transportation & Engineering Director Tippin provided a brief overview of his department which comprises Engineering, Parking, Airports, Streets and the Redding Area Bus Authority (RABA). Mr. Tippin pointed out, however, that as a joint powers, quasi-autonomous agency, RABA is equipped with its own governing authority and develops a separate stand- alone budget. He said the proposed budget for FY 2007-08 is $20,954,990 and for 2008-09 it amounts to $14,224,310. In response to Council Member Bosetti, Mr. Tippin said that while slurry seal may not be the best method to repair and maintain City streets, it does have a ten year life, and allows the City to address the street maintenance backlog at some level. Council Member Murray questioned the fees charged for Airport leases to private individuals and companies suggesting that a study be conducted to ensure that the City is receiving the market rate on these leases. Mr. Tippin acknowledged that lease amounts vary widely, but this is due to long-standing and/or long-term leases which may not be at current market rates because they were entered into some time ago. He said, however, that as leases come up for renewal, the rates are reviewed and increased to current market levels at that time. Gary Cadd, Redding resident, strongly urged Council to add traffic lights at the comers of Rigeview Drive and Whitehawk Drive, Mary Lake Drive and Wisconsin A venue and Placer Street to the list for construction. I In response to Council Member Bosetti, Airports Manager Dinger said that the City has no control over prices charged by the airlines, and Redding fares are higher than those to fly out of Chico due to lower passenger numbers. Mr. Dinger said that staff is working with representatives of United Airlines to bring Redding fares level with those in Chico. There are no other significant issues. Municipal Utilities Department Municipal Utilities Director Cupp stated that the Municipal Utilities Department includes the divisions of Solid Waste, Storm Drains, Water and Wastewater with a proposed budget totaling $81,369,670 in FY 2007-08 and $69,542,330 in 2008-09. Mr. Cupp stated that while there were no significant issues within the Department, he spoke briefly about water 06/21/2007 150 conservation, specifically related to the increasing number of Landscape Maintenance Districts (LMD's). Council Member Murray commented on the lack of recycling opportunities for condominium and apartment residents. Municipal Utility Manager Miralles responded that staff is reviewing methods to increase recycling efforts, however, apartments are difficult to address due to high tenant turnover. There are no other significant issues. Electric Utility Department Electric Utility Director Feider made an overhead presentation entitled "Significant Influences on REU Costs." He said that the proposed Departmental budget totals $128,278,000 for FY 2007-08 and $140,855,340 for FY 2008-09, and includes five new positions. He pointed out, however, that the budget does not include funding to construct the combined cycle generation unit #6 at the Power Plant and may, therefore, have to be amended in the near future. I There are no other significant issues. Support Services Department Support Services Director Kersten provided and overview ofthe Department comprised of the following divisions: Information Technology, Reprographics, the Convention Center and Visitor's Bureau, Fleet Maintenance, Park and Facilities Maintenance and Purchasing. He highlighted a list of challenges the Department is facing and reported that the proposed budget amounts are $14,785,290 and $14,717,700 for FY 2007-08 and FY 2008-09 respectively and includes one additional position. Mr. Kersten said there are no significant issues in the Department. Council Discussion Council Member Murray said that while he did not disagree with the rationale to build the Ten-Year Financial Plan utilizing conservative assumptions and maintaining a 5% reserve, he pointed out that this type of management always produces a lump sum of money in the second year once the budget is adjusted. He expressed concern that this money is then defined as "extra" or "found" money and instead of spending the money on current projects/priorities, new projects are added to the list. He suggested that Council determine how much "extra money" on average, the City can expect to identify and set priorities now on how it will be spent. I Council Member Bosetti concurred stating that many projects and programs designated by Council as priorities are not single-funded but are ongoing such as street maintenance etc. He added that it would be wise to utilize any unanticipated money on these projects. Council Member Murray also asserted that this is a spending budget and the money should be applied to General Fund purposes only, not capital projects or Enterprise Fund projects. He observed that money is being diverted from the City's operating cash flow in order to satisfy an obligatory 5% reserve and believed it more appropriate to spend that money for additional public safety personnel and debt service. In response to Mayor Dickerson, City Manager Starman explained that when staff under- projects certain revenue and receives more, that additional money is built into the Ten Year Plan. However, if it is not possible to maintain that historical balance over a given period of time, the Plan would fall short. I Mayor Dickerson summarized that there is no guarantee that an increase in revenue one year translates into an increase the following year. Council Member Murray said if a 3% growth rate is assumed in terms of sales tax while the historical growth rate is 4.7%, and that same assumption is made each year, the Ten Year Plan reflects that under-estimated growth rate each year, while the City's cash flow increases. Mr. Murray acknowledged that issues such as GASB 45 will have a significant financial impact on the City, but those issues are being addressed. He emphasized that the City must do something about increasing the number of public safety personnel. 06/21/07 151 Council Member Stegall indicated that while she understood Council Member Murray's position, she disagreed. She did not support dedicating additional funds to public safety issues only at this time. She maintained that there are many other crucial issues facing the City and it may be more effective to utilize the money in other ways. Council Member Jones contended that any "extra" money should be spent for street maintenance first with the Police and Fire Departments a close second. He said that while there are many important projects, he believed that street maintenance should be a top priority. I Mayor Dickerson observed this to be a complicated issue and believed that the ramifications of spending money that mayor may not materialize year-after-year could have serious consequences. He suggested that this topic be studied further and that staff be directed to outline the issues and concerns and return to Council at a later date. Assistant City Manager Bachman pointed out that in January or February of 2008, staff will bring a refreshed Ten Year Plan to Council to provide a clearer picture ofthe City's financial status at that time. Council Member Murray highlighted several issues that he believed deserved additional review and discussion by staff and the City Council in the near future such as leasing vehicles for City use versus purchasing vehicles; developing a policy for large developments, such as Westridge, wherein the police department will be provided an opportunity to analyze and address public safety needs for large developments prior to their moving forward; that public safety and other community impacts for these developments be considered at the Planning Commission level and not by City Council. City Manager Starman responded that staffhas examined the issue ofleasing vehicles versus purchasing vehicles for City use at various times in the past. He said that staff will address the issue as a pilot project and prepare an analysis for Council consideration. I Mayor Dickerson said that while the budget does not contain the financial resources to accommodate all the City's needs and wants, he believed it to be a realistic budget and a source of information for individuals interested in the City's financial picture. The City Council commended City Manager Starman and staff for their hard work in preparing and presenting the biennial budget for 2007-09. MOTION: Made by Council Member Pohlmeyer, seconded by Council Member Stegall adopting Resolution No. 2007-127, a resolution of the City Council of the City of Redding adopting and approving the Biennial Budget for Fiscal Years ending June 30, 2008, and June 30,2009 as presented. The Vote: A YES: Council Members: Bosetti, Jones, Murray, Stegall and Dickerson NOES: Council Members: None ABSTAIN: Council Members: None ABSENT: Council Members: None Resolution No. 2007-127 is on file in the Office of the City Clerk. ADJOURNMENT There being no further business, at the hour of 4:35 p.m., Mayor Dickerson declared the meeting adjourned. I APPROVED .{U-r_~ Mayor ATTEST: ~~ ' 71 City Clerk 06/21/2007