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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1993-01-20 - Adjourned Regular Meeting1 01/20/93 City Council, Adjourned Regular Meeting Redding Convention Center, Room 125 Redding, California January 20, 1993 1:00 p.m. The meeting was called to order by Mayor Moss with the following Council Members present: Anderson, Arness, Dahl, Kehoe and Moss. Also present were City Manager Christofferson, Assistant City Manager McMurry, Director of Public Works Galusha, Director of Planning and Community Development Perry, Chief of Police Blankenship, Electric Utility Operations Manager Ryan, Fire Chief Bailey, Assistant City Attorney Calkins, Director of Community Services Gorman, Director of Finance Downing, Public Works Operations Manager Russell, Director of General Services Masingale, Director of Recreation and Parks Riley, Police Lieutenant Byard, Director of Information Systems Kelley, Director of Personnel Bristow, Assistant Finance Director Sundin, Airports Director Ruff, Director of Utilities/Customer Services Vokal, Risk Manager Mlinarcik, Budget Services Officer Starman, Senior Accountant Strong, Public Information Officer Bachman and City Clerk Strohmayer. OVERVIEW OF MID-YEAR FISCAL PICTURE (B-130-070) Budget Services Officer Starman reviewed the memorandum to Council dated January 19, 1993, incorporated herein by reference, which provided a comparison of the actual General Fund expenditures and revenues through December 31, 1992, to original budget projections or subsequent revisions. The report also provided a brief review of revenues and expenditures for all enterprise fund departments, as well as selected special revenue funds. In the interest of time and space, information concerning internal service fund departments was not provided. In addition, he provided an overview of the national, state, and local economies. Mr. Starman provided the following General Fund Summary as of December 31, 1992: Beginning Cash Balance $ 1,310,000 Projected Revenue $ 29,832,000 Projected Transfers In $ 1,898,000 Projected Transfers Out $ (150,000) Total Appropriations $(32,219,000) Estimated Ending Cash Balance $ 671,000 Total appropriations in the amount of $32,219,000 excludes supplemental appropriations for prior year encumbrances. This was an information item and no action was required. BUDGET POLICY ISSUES (B-130-070) City Manager Christofferson explained that the following budget policy issues have been developed in order to receive Council's guidance prior to the formation of the 1993-94 fiscal year budget. He indicated that budget kick- off sessions will begin the week of February 8, 1993. a. Reserved Fund Level (B-130-070) Director of Finance Downing referenced the memorandum dated November 3, 1992, incorporated herein by reference, regarding reserved fund balances in local governments. She explained that there is no hard, fast rule as to what level of reserved fund balances should be maintained. The City of Redding currently has a policy that it have a three percent reserve of total General Fund expenditures. Staff is seeking Council's direction as the reserve level it would like for the upcoming fiscal year. Council Member Anderson stated that although he would like to maintain a higher reserve, now is not the time to do so. He believed it would, therefore, be prudent to maintain the three percent reserve for the 1993-94 budget year. 2 01/20/93 Mayor Moss and Council Member Dahl concurred with maintaining a three percent reserved fund level. MOTION: Made by Council Member Kehoe, seconded by Council Member Arness, reaffirming the City's current policy of maintaining a three percent reserved fund level. The Vote: Unanimous Ayes b. Library Support (B-130-070 & L-050) Director of Finance Downing recalled that the City provided funding in the amount of $150,000.00 for the library in the 1992-93 fiscal year budget. She questioned whether Council wanted staff to provide funding for the library in the 1993-94 fiscal year budget process. City Manager Christofferson acknowledged that there is an election scheduled for March 2, 1993, to consider a library measure which, if passed, would provide funding for the entire library system. He indicated that Council may desire to postpone action on this item until after the results of the election are known. Al Weisberg appeared later in the meeting and referenced the library measure scheduled to go before the voters on March 2, 1993. He requested Council's support of the measure which proposes to increase sales tax in Shasta County for three years, thereby providing the endowment necessary to finance the entire library system. If the measure fails, he indicated that the Library Commission would again be requesting the City's financial support of the library system which is a vital community resource. It was the consensus of Council to defer action regarding the City's support of the library until after the results of the March 2, 1993 election are known. c. Community Event Support (B-130-070 & B-130-030) Director of Finance Downing recalled that Council adopted a policy regarding community special events and provided funding in the 1992-93 fiscal year budget in the amount of $34,000.00. She noted that while the banner program was only allocated funding in the amount of $2,500.00, the balance has reached approximately $9,700.00. She related that the Electric Department would also like to receive reimbursement from this account for its time associated with the hanging of street banners. She asked for direction from Council as to its position with regard to community event support for the upcoming fiscal year. Council Member Arness favored continuing to provide community event support. He also supported reimbursing the Electric Department for its services. Council Member Anderson stated that he would like to maintain the same policy for the upcoming fiscal year. He did not, however, support reimbursing the Electric Department for its services, as it places the entire burden upon the General Fund. Council Member Moss concurred with Council Member Anderson. He saw no reason why the Enterprise Funds should not assist in subsidizing these events. It was the consensus of Council to maintain its current policy regarding community event support and maintain its level of support at $34,000.00 for the 1993-94 fiscal year. d. Insurance Reserves (B-130-070 & R-100-375) Risk Manager Mlinarcik updated Council on the City's insurance reserves for liability and workers' compensation claims. He reviewed the 1993-94 Actuarial Funding Recommendations, as well as staff's Funding Recommendations for 1993-94, incorporated herein by reference. He explained that in order to fully fund the City's liability and workers' compensation programs at the 60% confidence level, Risk Management would have to budget a total of $3,646,421.00 for claims in 1993-94 as follows: Liability - $1,604,371.00 and Workers' Compensation - $2,042,050.00. 3 01/20/93 It is the recommendation of the Risk Management Department that Council adopt a policy which sets as its goal fully funded self-insured worker's compensation and liability programs at a minimum 60 percent confidence level. The policy would also direct staff to gradually increase reserves to that level as resources allow. In the 1993-94 fiscal year, such a policy could be implemented by: 1) Maintaining the Risk Management claims budget at approximately the same level as in 1992-93; 2) Transferring any unexpended funds in the 1992-93 Risk Management budget directly to the self-insurance reserves; and 3) Using any reimbursements from the California Joint Powers Risk Management Authority to increase the reserves. Staff expects to receive a reimbursement this coming year of approximately $185,000.00 to $220,000.00. He explained that the City pays a premium each year to the California Joint Powers Risk Management Authority which in turn pays all claims ranging from $500,000.00 to $10,000,000.00. In response to Council Member Anderson, Mr. Mlinarcik estimated the City's current confidence level to be well below 60 percent. Mayor Moss questioned how much of the claims could be attributed to General Fund Departments. Mr. Mlinarcik replied that approximately 60 percent of the claims are General Fund related, with the remaining 40 percent being Enterprise Funds. The method used to determine the cost to departments each year is to divide the cost based on each department's payroll and claims experience. MOTION: Made by Council Member Anderson, seconded by Council Member Arness, to maintain the 1986 Funding Policy and approved the transfer of 1992-93 unexpended funds and reimbursements from the Joint Powers Risk Management Authority to the self-insurance reserves. The Vote: Unanimous Ayes e. Funding Levels and Service Levels (B-130-070) Discussion regarding funding and service levels was not held. f. Street Maintenance (B-130-070 & S-070-200) Public Works Director Galusha discussed the report outlining the 1992-93 budget reductions which were made in the Streets Division totaling $888,000.00, incorporated herein by reference. He explained that the City has historically relied upon the General Fund to pay for street maintenance. Council Member Arness recommended the usage of part-time employees to accomplish the street maintenance projects. It was the consensus of Council to place a high priority on funding the identified deferred street maintenance projects totaling $888,000.00 in the 1993-94 budget and utilize any available discretionary funds to complete said projects. At the hour of 2:58 p.m., Mayor Moss declared the meeting recessed. At the hour of 3:10 p.m., Mayor Moss reconvened the meeting to regular session. g. Assumptions Regarding Utility Rate Increases (B-130-070) Director of Finance Downing stated that when the budget is developed each year, historically staff has followed the policy of maintaining utility rates at the rates in existence at the time of budget adoption. Staff is requesting guidance from Council as to whether utilities rate increases should be included during budget preparation. Council Member Arness favored increasing rates on an annual basis to be consistent with the solvency of the department. He supported considering rate increases during budget preparation. Council Member Anderson opined that the logical time to consider rate increases would be during budget preparation. Council Member Dahl concurred with Council Member Anderson. He noted that the rate could be changed at a later date. 4 01/20/93 Mayor Moss stated the consideration of rate increases at the time of budget preparation might even simplify the budget process. MOTION: Made by Council Member Dahl, seconded by Council Member Anderson, directing staff to provide for utility rate increases at the time of budget preparation. The Vote: Unanimous Ayes h. "Golden Handshake" Program (P-100-200) City Manager Christofferson stated that information was previously provided to Council regarding the "Golden Handshake" program, as well as information received on the program implemented by Shasta County. He indicated that it is uncertain how many employees would take advantage of the program and there are considerable associated up-front expenses. He did not favor the City implementing the program. He questioned, however, if Council would like to give the program further consideration. MOTION: Made by Council Member Arness, seconded by Council Member Dahl, to discontinue any further consideration of the "Golden Handshake" Program. The Vote: Unanimous Ayes i. Implementation of Task Force Reports (B-130-070 & P-150) Police Chief Blankenship explained that the Police Department Task Force Report suggested concentration on the following areas: a) Group homes - Neither the City nor the County have any control over this area, however, positive changes are being seen at the State level; b) Gangs - The department is trying to educate the community and get it involved with the issue of gang activity. A considerable amount of progress is being made in most areas; and c) Narcotics enforcement -Redding is still the only agency fully staffed with three persons. The City of Anderson has not been able to participate because of staff reductions and the Shasta County Sheriffs' Department has reduced their staffing by one in this area. He indicated that the agencies will be requesting the Shasta Interagency Narcotics Task Force (SINTIF) to assist the agencies with their budgetary problems in the area of narcotics enforcement. He continued that while the area is economically depressed, the community continues to grow in both land mass and population. The City is growing at a rate which, during the budget process, will indicate some additional manpower is required as the department has remained relatively flat. Fire Chief Bailey conveyed the value of the Fire Department's Task Force report and hoped to start implementing some of its recommendations in the upcoming year. j. Park and Landscape Maintenance (A-170-075 & P-050) Planning and Community Development Director Perry indicated that there are two issues with regard to park and landscape maintenance which Council has expressed an interest in considering: 1) Application of the landscape maintenance districts to the maintenance of parks in subdivisions; and 2) Potential for allowing subdivisions to maintain the landscaping along their streets. Recreation and Parks Director Riley explained that during the past 20 years, at one time or another, the Recreation and Parks Department has contracted out most of the services it provides. He stated that the only services presently being contracted are the landscape maintenance districts and that utilization of temporary part-time employees made it more economically feasible for the City to perform the work. Council Member Kehoe commented that the Council subcommittee on this matter has met with Mr. Perry. He stated that additional informational meetings will be held and a recommendation will be forthcoming to Council. It was the consensus of Council to defer action on park and landscape maintenance until the recommendation is received from the Council subcommittee. k. Consideration of New Revenue (B-130-070 & P-100-200) 5 01/20/93 City Manager Christofferson explained that staff has been completing an operations review and has identified several possible means of increasing revenue: 1) In-lieu franchise fee; 2) Sell City address lists; 3) Sell advertising in utility bills and on various City property; 4) Charge for use of City property for fund raisers; 5) Place a cap on spending for museums, with a gradual reduction in City support over a period of years; and 6) Implement a users fee for Fire Department medical calls. Mr. Christofferson asked if Council wanted to give further consideration to any of the noted items. It was the consensus of Council to give further consideration to the following items: a) Establish a users fee for Fire Department medical calls; and b) Work toward the goal of making the Museum financially independent. Council Member Anderson opined that in light of the current hiring freeze, Council should not consider any new position requests. He also suggested that individual departments prioritize the services they offer. City Manager Christofferson related that General Fund department directors will be meeting on January 22, 1993, to begin the process of prioritizing services within individual departments. He explained that as circumstances change, Council may be requested to give consideration to position requests. Council Member Dahl recommended that Council meet with department directors and assist with the prioritization of service effort, thereby providing clear direction to staff before the development of the 1993-94 budget. Mr. Christofferson suggested that once the department directors have prioritized services within their respective departments, Council then review the material and provide any recommendations. BUDGET FORMAT (B-130-070) Council Member Arness recommended certain changes in the budget format and provided examples utilizing the Recreation and Parks and Public Works Departments. In the interest of time, he asked each Council Member to review the material and provide him with any comments regarding the suggested format. This was an information item and no action was required. EMERGENCY OPERATIONS PLAN (P-150-050) Fire Chief Bailey presented Council with a copy of the Draft Emergency Operations Plan and asked whether Council had any comments regarding the material. Chief Bailey suggested that the chairs of the three major City commissions serve as the Standby Council referenced in the plan. MOTION: Made by Council Member Arness, seconded by Council Member Kehoe, to accept the draft Emergency Operations Plan and direct staff to bring the final plan back to Council for adoption. The Vote: Unanimous Ayes BUCKEYE WATER TREATMENT PLANT (W-030-600) Public Works Director Galusha and Public Works Operation Manager Russell reviewed the Report to City Council dated January 15, 1993, incorporated herein by reference, which provided an update regarding the Buckeye Water Treatment Plant project and staff's proposed course of action. Mr. Galusha explained that the project is progressing on five fronts: 1) design and construction; 2) right-of-way acquisition; 3) United States Bureau of Reclamation (USBR) water contract amendment; 4) financing; and 5) State Department of Health Services (DOHS) approval. He stated that the only phase of the project that has the potential to delay the start of construction is the USBR water contract amendment. 6 01/20/93 It is the recommendation of staff that Council authorize staff to proceed with the proposed course of action for the completion of the Buckeye Water Treatment Plant project. Staff will request Council's approval on each of the action items required: 1) Approval of the selection of bond underwriter and counsel; 2) Approval to advertise for bids; 3) Approval of Task Order No. 6 with Boyle Engineering for services during construction; 4) Approval of contracts with consultants for surveying services and testing services during construction; 5) Approval of the sale of $9-10 million in revenue bonds; and 6) Award of the three construction contracts. MOTION: Made by Council Member Anderson, seconded by Council Member Kehoe, authorizing staff to proceed with the proposed course of action for the completion of the Buckeye Water Treatment Plant project as outlined in the Report to City Council dated January 15, 1993. The Vote: Unanimous Ayes ANNEXATION POLICY (A-150) Council Member Arness expressed his opposition to future annexation requests as outlined in his memorandum dated January 18, 1993, incorporated herein by reference. Council Member Dahl inquired if the retirement of Buckeye Water Treatment Plant project debt was dependent on future annexations. Public Works Director Galusha replied that the debt would be repaid by users within the existing service area. Council Member Anderson shared some of Council Member Arness' concerns, however, did not have a solution to the problem. He suggested that Council reconsider the entire annexation issue at a later date. In response to Council Member Kehoe, Assistant City Manager McMurry clarified that the Mello-Roos District can be dissolved by a 51 percent vote of the property owners within the area. This was an information item and no action was required. BONNYVIEW OVERPASS WIDENING PROJECT (S-070-050-030) Public Works Director Galusha highlighted the Report to City Council dated January 14, 1993, incorporated herein by reference, which discussed the value engineering study approach to the South Bonnyview and Interstate 5 (I-5) Interchange project. The study resulted in project costs being reduced from $6,000,000 to $3,500,000. The project would widen the South Bonnyview bridge across I-5 to six lanes, and signalize existing ramps and the intersection of South Bonnyview and Churn Creek Road. Planning and Community Development Director Perry stated that the sale of redevelopment bonds will allow staff to proceed with the environmental assessment and engineering for the structure. In response to Council Member Arness, Mr. Galusha was not of the opinion that the project would qualify for 116 funding. This was an information item and no action was required. EMERGENCY MEDICAL DISPATCHING REIMBURSEMENT ARRANGEMENTS (C-175-825-100) City Manager Christofferson recalled that in June 1992, Council enacted a fee for the City's emergency medical dispatching service. No funds have been collected to date and amount to approximately $42,000.00. He stated that the City Attorney would be requesting a closed session at a later date to discuss the possibility of a legal solution to the matter. This was an information item and no action was required. WATER FUND REVENUE/EXPENDITURE BALANCE, 1993-1995 (W-030-400) Public Works Director Galusha reviewed the Report to City Council dated January 15, 1993, incorporated herein by reference, outlining a revenue plan for water rates and water connection fees. 7 01/20/93 Mr. Galusha explained that because Water Utility operating expenses have exceeded operating revenues, a rate increase of nine cents per cubic foot (CCF) is required. This increase would cause an average residential water bill to increase approximately $1.75 per month. In addition, the water connection fee should be increased to $1,825.00 per household equivalent to keep up with construction costs. In order to go forward with the bond sale required as part of the Buckeye Water Treatment Plant project, a revenue program should be adopted prior to bond sales. In response to Mayor Moss, Mr. Galusha indicated that it would be necessary to consider a water rate increase before the 1993-94 fiscal year budget. Without a rate increase, the Water Utility may not meet the required bond debt coverage ratio. This was an information item and no action was required. Public Works Director Galusha will develop a specific plan for Council's consideration at a later date. SURCHARGE FOR LANDFILL CLOSURE (S-020-300) Director of General Services Masingale provided a status report on the Benton Landfill closure in a communication dated January 18, 1993, incorporated herein by reference. He stated that during the 1993-94 budget process, a rate increase will be included to cover the cost of closing Benton Landfill which will be reflected on the utility bill as a separate line item. This dedicated charge will "sunset" once the debt is paid. It is staff's intention to combine the financing for closing Benton Landfill and opening the transfer station. This was an information item and no action was required. FIRE DEPARTMENT OVERTIME (P-100-120 & B-130-070 & A-050-140) Director of Finance Downing explained that this item was continued from the January 5, 1993, Council meeting. She noted that the original report indicated that the amount of overtime in the Fire Department would be offset by approximately $160,000.00 in reimbursements from other fire fighting agencies. Staff has subsequently learned that this figure will actually be closer to $110,000.00. Based on previous Council direction, the Finance Department recommended that Council hire three full-time, temporary fire engineers to mitigate the overtime problem with the understanding that staff will attempt to develop a permanent solution with the development of the 1993-94 fiscal year budget. Ms. Downing commented that if additional monies are not allocated, the Fire Department's overtime expenses will exceed those budgeted. City Manager Christofferson stated that staff will be conducting a meet-and- confer session with the Fire Fighters and should have a better understanding of the situation in approximately two weeks. It was the consensus of Council to defer action on this matter for two weeks. PRIVATIZATION (B-050) City Manager Christofferson recalled that when Council considered this matter in October 1992, each Council Member was to provide a rating of the services to be considered for privatization. To date, not all responses have been received. Staff has, however, continued to work on the issue of privatization, examples of which include the golf course and the Sports Complex. He stated that a City representative might also be attending a conference scheduled on privatization. Mr. Christofferson asked each Council Member to submit their individual rating sheets of services to be considered for privatization. This was an information item and no action was required. CONSOLIDATION OF SERVICES 8 01/20/93 (B-050) City Manager Christofferson provided an update regarding the work done to date on the possible consolidation of services with the County of Shasta and the City of Anderson. He indicated that the agencies have been meeting periodically and developing new information and ideas to consider and evaluate. In response to Council Member Arness, Mr. Christofferson indicated that several groups have been formed and have ongoing discussions in the areas of personnel and purchasing. This was an information item and no action was required. REPORT ON TWO-TIER SYSTEM (P-100-200) No discussion or action was taken with regard to the two-tier system. PAPER WORK REDUCTION (A-050-060) City Manager Christofferson indicated that staff is currently implementing actions to reduce the amount of paper work transmitted to Council. Examples of this include not providing copies of contracts with agenda items, but having the items available for review in the City Clerk's Office. KEEPING CITY EMPLOYEES INFORMED REGARDING CITY'S FISCAL STATUS (B-130-070) Council Member Kehoe stated that it is imperative to keep employees up to date regarding the City's fiscal status and the actions being taken at both the administrative level and Council level. The City Manager has indicated that he will intensify his efforts in areas such as the monthly "Brown Bag" program. City Manager Christofferson added that the City's Dialogue publication is also utilized for keeping employees informed. He provided Council an advance copy of the issue scheduled for release on January 21, 1993 which discusses the impacts of the State's proposed take away of funds on the City's budget. This was an information item and no action was taken. ADJOURNMENT There being no further business, at the hour of 4:30 p.m., Mayor Moss declared the meeting adjourned. APPROVED: ____________________________ Mayor ATTEST: _______________________________ City Clerk