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HomeMy WebLinkAboutMinutes - City Council - unsigned - 1995-06-19 - Adjourned Regular Meeting Redding City Council Adjourned Regular Meeting City Hall Conference Room 760 Parkview Avenue Redding, California June 19, 1995 8:30 A.M. The meeting was called to order by Mayor Kehoe with the following Council Members present: P. Anderson, R. Anderson, McGeorge, Murray and Kehoe. Also present during the budget study session were City Manager Warren, City Attorney Wingate, Assistant City Manager Perry, Director of Public Works Galusha, Director of Electric Utility Lindley, Chief of Police Blankenship, Interim Planning Director Keaney, Fire Chief Bailey, Police Captain Byard, Police Captain Davidson, Police Captain Dirks, City Treasurer Linville, Administrative Services Director Starman, Director of Community Services Gorman, Battalion Chief Tomicich, Battalion Chief Del Carlo, Director of Finance Downing, Assistant City Engineer Aasen, Public Works Operation Manager Russell, Director of General Services Masingale, Superintendent of Wastewater Craig, Airports Director Perry, Director of Utilities/Customer Service Vokal, Assistant Director of General Services Kohn, Transportation Coordinator Duryee, Management Assistant to City Manager Bachman, Personnel Analyst Sciarra, Senior Accountant Strong, Accountant Bouchard, City Clerk Strohmayer and Assistant City Clerk Moscatello. BUDGET STUDY SESSION & TEN YEAR FINANCIAL PLAN (B-130-070) Mayor Kehoe stated that members of the community were involved in this year's preliminary budget review meetings between the City Manager and departments and are participating in today's budget sessions. He introduced Bob Conley and John Fitzpatrick and acknowledged their contribution to the budget hearing process. City Manager Warren presented the budget for fiscal year 1995-96. He suggested that one or two Council Members participate in next year's preliminary budget meetings with the departments. Mr. Warren stated that staff will be evaluating how cross charges and allocations are computed and make it easier to understand. He conveyed that the City's total budget is $152 million (an 8.1% increase from last year), of which the general fund comprises $33 million. Mr. Warren pointed out that there has been an overall decrease in City employees, and the percentage of employees per 1000 residents has decreased from 9.9 to 9.3, which translates into less government. Mr. Warren submitted a list of Unmet Needs and a list of Unfunded Projects from the Capital Improvement Plan, 1995-2000. He discussed the need for a planning document such as the Capital Improvement Plan, but cautioned that it becomes more speculative the farther out it goes. Mr. Warren outlined the revenue assumptions and summary of expenditures. Mr. Warren explained that the budget increased from last year for the following reasons: SHASCOM, debt service for the Corporation Yard, street maintenance, and cost of living adjustments. He stated that if these four items totalling $2.2 million are backed out of the budget, the budget is less than previous years. Mr. Warren discussed general fund cash flow projections and stated that there is a 5% reserve. City Manager Warren invited comments from the citizen's review committee. Mr. Fitzpatrick stated that it is essential for the City to have a ten-year planning document. He commended the City Council for hiring Michael Warren as City Manager, and he stated that participating in the budget study meetings was a great education, and he was impressed by the management staff of the City of Redding. Mr. Fitzpatrick recommended that the City continue to find cost savings and become more efficient. He commented that government controls on local government are very burdensome and are far worse than government controls on the private sector. Mr. John Fitzpatrick recommended that Council become involved in the departmental budget discussions next fiscal year. He acknowledged that Council Members act as liaisons with various departments; however, he recommended that Council Members become more familiar with those departments outside of their regular assignments. Mr. Fitzpatrick referred to the chart depicting employees to residents and said it would be interesting to see what has happened in the private sector. He suspected that those ratios would be much more harsh and pointed out that consumers pay lower prices because they are doing more of the work. Mr. Fitzpatrick expressed hope that the City will not end its support of the museums in five years, but continue to be involved. Mr. Don Conley stated that participating in budget meetings was a great education and he would encourage any citizen to become involved. He also encouraged Council to become involved in the departmental budget meetings. Mr. Conley said he was impressed with the work that managers and staff were doing. He pointed out that there are no new fees in the budget; and while he is not recommending a wholesale increase in new fees, he suggested that Council regularly review its fee schedule on a case-by-case basis so fees will not reflect large increases later. He said that the people who use the service should pay for it. Recess At the hour of 9:48 a.m., Mayor Kehoe called a recess. At the hour of 10:03 a.m., Mayor Kehoe reconvened the meeting. Council Member Murray drew a distinction between the ten-year financial plan and the revenue assumptions on page A-42 and the current year financial plan and the assumptions on pages A-3 and A-4, and he opined that they should serve two different functions. He suggested that for planning purposes, Council should be goal oriented. He noted that the proposed ten-year plan assumes that all functions will continue at some level; however, there are no assumptions for population growth in correlation with how much funds are available. Mr. Murray recommended that the City prioritize its services based on the creation of a hierarchy of community expectations in which funding is based on its income. He said the plan should be mission driven, not money driven. Council Member R. Anderson stated that the ten-year financial plan should be financially driven, otherwise it is only a dream list. He stressed that all the departments and the services they provide are important and the City must balance its funds between them. He said he does not want to fund only one or two departments. Council Member P. Anderson agreed that the budget must be balanced between the departments. She noted that this is the first time the City has had a ten-year plan; and based on that plan, future Councils can decide what is feasible to build or what services to provide. Council Member P. Anderson noted that the ten-year plan is a tool. Council Member McGeorge agreed with Council Members R. Anderson and P. Anderson and pointed out that most of the City's concerns are addressed on a bi-weekly basis, and the budget study session and budget document are tools to direct Council's course of action. Mayor Kehoe said he is comfortable with the ten-year financial plan and believes it is a good tool. He added that Council Member Murray's points are valid, and there has been some discussion about prioritizing goals reflective of the community's values. He noted, however, that Council should keep a high level of flexibility. Council Member Murray said he would like to see dates tied to the ten- year financial plan and what it means to the departments. He said the plan is tied to nothing other than money and it does not tie in to the level of service. MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge, to adopt the ten-year financial plan as presented. Voting was as follows: Ayes: Council Members - P. Anderson, R. Anderson, McGeorge and Kehoe Noes: Council Members - Murray Absent: Council Members - None General Government Administrative Services Director Starman reviewed the following General Government departments: City Council, City Manager, City Clerk and City Treasurer. City Attorney Wingate reviewed the budget for the City Attorney's department. Council Member Murray pointed out that this year's budget document shows either a decrease or increase in each department's budget compared to last year's budget. However, the amount budgeted this year is compared to last year's adopted budget, rather than the amount actually spent. Therefore, the amount is distorted. It was the consensus of City Council to use last fiscal year's budget, as amended, as a comparison to this fiscal year's budget. Council Member Murray questioned why the allocation from enterprise funds to the general fund is so low. Mr. Starman explained that the formula for allocating costs was conceived in 1987-88, and he agreed that it may be time to take another look at how charges are allocated. Mayor Kehoe said it is the consensus of City Council for staff to review the allocation program and bring a report back to Council. City Manager Warren asked if Council would like to see an allocation page for each department or one page for all departments. Mayor Kehoe suggested that Council make that decision after reviewing staff's report. Council Member P. Anderson questioned when, in view of legislation moving the California primary from June, 1996, to March, 1996, will the City hold its next general municipal election. City Clerk Strohmayer stated that it is her intention to prepare a report to City Council outlining Council's options and a cost comparison between a stand alone election and a consolidated election. Non-Departmental Administrative Services Director Starman reviewed the Non-Departmental budget. Council Member Murray said he would like to review the fees relative to animal regulations because the amount of revenue is less than expenditures. Mary Stegall, Executive Director of the Womens' Refuge, introduced Jerry Peters, Carol Murphy and Vi Klaseen. Ms. Stegall requested that Council consider funding the Womens' Refuge in the amount of $35,000 to help curb domestic violence. She noted that the Womens' Refuge is presently funded through the Community Development Block Grant (CDBG) program and the CDBG Advisory Committee advised the Womens' Refuge that they cannot continue using CDBG funds year after year. She explained that if CDBG funds are not available, the City will not be supporting the program. Ms. Stegall explained that domestic violence is increasing and they provide much needed services for the Police Department and the City. Council Member P. Anderson asked to what extent Shasta County and other cities support the Womens' Refuge. Ms. Stegall stated that Shasta County contributes $30,000, the City of Anderson contributes $5,000 and Shasta Lake contributes $2,500. Council Member Murray noted that the Womens' Refuge also has a contract with the City of Redding for rape crisis counseling. Ms. Stegall conveyed that the City has contracted with the Womens' Refuge for rape crisis counseling in the approximate amount of $2,000 per year. She clarified that the funding she is requesting would be for their domestic violence program. Council Member Murray said he does not know enough about the program at this time to make a decision. He said he would not object to hearing a presentation by Womens' Refuge staff. Kathy Svoboda, representing the Redding Symphony, asked City Council to consider financially supporting the Redding Symphony in the amount of $5,000. She stated that this is the first time the Redding Symphony has asked for financial support. Council Member R. Anderson summarized the following items considered by Council: 1) The summary box in the budget document will compare the proposed budget to the last fiscal year budget as amended; 2) Relative to cost allocations, staff will review and make recommendations on the basis and amount of cross department charges and report back to Council; 3) The City Clerk will present a report on options and cost savings with the possibility of combining the general municipal election with the general primary or other allowable elections; 4) Review the revenue derived from Haven Humane Society for stray animals claimed by owners to determine if the charge is reasonable; 5) Set up the Civic Center as a budget line item; 6) Consider adding additional funds to the City Manager's discretionary fund in the non-departmental budget for emergencies, etc., and 7) Consider the budget requests for the Womens Refuge in the amount of $35,000 and the Redding Symphony for $5,000. Administrative Services Administrative Services Director Starman reviewed the Administrative Services budget including Information Systems, Personnel, Finance and Utilities Customer Service. Mr. Starman conveyed that the number of maintenance contracts for personal computers has been reduced, and it is staff's intent to hire a part-time employee to maintain the computers, except for the AS400 hardware. He explained that it is a pilot program and will be assessed over a 12 month period. Council Member Murray asked what the status of the Information Systems programming backlog is. He questioned why the City does not contract for programming services and opined that a plan is needed to reduce the backlog. Mr. Starman stated that the backlog is getting worse; and unless staff is added, it will not improve. He explained that it takes time to bring a programmer up to speed, and it is generally preferable to use staff for programming. Council Member P. Anderson noted that the City is dependent on in-house programming, and staff may want to evaluate what can be off-loaded to off-the-shelf software. Council Member P. Anderson recalled that Council requested implementation of an employee bonus program retroactive to the employees responsible for building the Solid Waste Division's recycling machine. Mr. Starman noted there were problems with the last program; however, staff is moving forward on implementing a new program. Council Member Murray asked to see the health benefits listed on page C- 17 broken out in the budget. Council Member R. Anderson summarized the following items considered by Council: 1) Include the source of funding on the Summary of Capital Projects Page A-54, such as grant funding, department budget, general fund or enterprise fund; 2) Review, make recommendations and report to Council on the backlog in Information Systems including whether off-the- shelf software should be acquired, if computers should be decentralized from the mainframe and if an outside consultant should be used to create new systems, and 3) Establish an employee bonus program retroactive to construction of the Solid Waste Division recycling machine. Recess At the hour of 12:22 p.m., Mayor Kehoe recessed the meeting. At the hour of 12:51 p.m., Mayor Kehoe reconvened the meeting. Community Services Director of Community Services Gorman reviewed the Community Services budget including the Convention and Visitor's Bureau, Museums, Parks and Recreation and information relative to Park Development/In Lieu fees. Mr. Gorman conveyed that staff is examining the privatization of the Redding Community Access Corporation, and it is staff's intent to return to Council with a recommendation in July. Mayor Kehoe asked if Council can be apprised of how the museums are using funds designated to their operation for this fiscal year in the amount of $690,000. Mr. Gorman stated that he will forward a report to City Council. Mr. Gorman stated that the timeline for merging the museums has been extended and, consequently, each individual museum must develop additional funding to replace City funding. He conveyed that the Carter House Science Museum believes it will meet the goal; however, the Redding Museum must raise $430,000 to make up for City funding. Mr. Gorman said the Redding Museum has begun a concerted development effort, and a four-year development plan to replace City funding is in place. Council Member Murray asked how the Enterprise Park will be maintained without increasing staff. Mr. Gorman said they will supervise staff carefully to become more efficient. City Manager Warren noted that some new equipment has been purchased to increase efficiency. Council Member Murray asked when recreational user fees were reviewed last. Mr. Gorman conveyed that the Recreation and Parks Commission will be reviewing the fee structure soon. City Manager Warren noted that the City currently recoups user fees in the amount of 20% to 25% of costs. He said that figure is low and on average, about 50% of the fee should be recovered. Mr. Warren stated that staff will be reviewing for recreation user fees Mr. Fitzpatrick stated that the museum's ten-year plan is a flexible document that will be continually changing. He noted that the City has a contract with the museums, the Turtle Bay Committee has gained experience and a new director will be coming on board. Mr. Conley stated that recreation is one area where user fees should be reviewed on a case-by-case basis. He noted that some programs are important to the community and should be supported by the City; but, there are programs that could be more self-sufficient. Mr. Arness stated that Council should also consider the positive impact recreation programs have on the crime rate. Council Member R. Anderson summarized the following item considered by City Council: 1) Direct staff to review the fee structure of all recreational activities. Development Services Interim Planning Director Keaney reviewed the Development Services budget including Planning, Building and Community Development. Council Member Murray stated that he would like to see goals and objectives for the plan check program, and he would like to review the concept of privatizing plan checking. Airports Airports Director George Perry reviewed the Airports Department budget. Mr. Perry stated that the budget request is status quo. Mr. Perry stated that their are two major capital improvement projects, including the northeast access project involving a permanent taxiway, road access and utilities. He explained that this project is 90% federal and 10% locally funded. Mr. Perry added that the other project is the underground tank removal which will use 100% local funds. He stated that Council may see an end to federal development of airports. Council Member P. Anderson asked if there is a five to ten year goal to reduce general fund support. Mr. Perry stated that as long as federal grant programs require local government to share the cost of airports projects, he does not think so. He opined that the Airport may be able to generate additional revenues from the Industrial Park. Mayor Kehoe asked if the Airports Department will be able to repay loans made from the general fund. Mr. Perry responded that he can only hope that the Airports Department will reach the point where it can break even. In response to Mayor Kehoe, Administrative Services Director Starman stated that general fund support of the Airports Department is recorded as a loan. Council Member Murray suggested that a page in the budget show who owes what to whom. Council Member Murray inquired as to the status of the CC&Rs for the Airport Industrial Park. Assistant City Manager Phil Perry stated that that project needs to get back on track. He said a draft document has been submitted to the City Attorney. Vi Klaseen, 2295 Oakridge Drive, pointed out that airplanes are public transportation as are trains and buses, and they should be included as an integral part of City planning. She pondered what the result would be if as much money was put into the airport as is channeled into the bus system. Carl Arness, 2216 Oakridge Drive, asked how much money is being proposed for work on the general plan. Mayor Kehoe stated that Council is keeping that open ended. He added that the City will solicit public input and hold a series of public meetings. Council Member R. Anderson summarized the following items considered by City Council: 1) Direct staff to review the desirability of the City continuing the plan check program and report back to Council on options from complete to partial elimination of the program; 2) Include a page in the budget setting forth all interfund loans including their beginning balances, additional advances, repayment of loans, and from whom it was borrowed; and 3) Direct staff to develop a timeline for making the Airport Industrial Park property marketable. Fire Department Fire Chief Bailey reviewed the Fire Department's budget including Fire Suppression, Prevention and Hazardous Materials. Council Member Murray questioned why the Fire Department is projecting a large increase in arson fires. Fire Chief Bailey stated that he will research this question and report back to Council. Administrative Services Director Starman stated that both the Police Department and the Fire Department budgets were predicated on the assumption that SHASCOM's allocation from the City would be $1,138,000. SHASCOM adopted its budget last week in the amount of $1,188,000; therefore, it would be appropriate to increase the Fire Department and Police Department budget by $25,000 each for that purpose. Council Member R. Anderson summarized the following item considered by Council: 1) Increase Fire Department budget by $25,000 for SHASCOM allocation. Police Department Police Chief Blankenship reviewed the Police Department's budget including Field Operations, Investigations and Administrative Services. Police Chief Blankenship conveyed that staff will soon receive the results of the Police Officer Standards Training (POST) audit and will submit it to Council for their information. Police Captain Dirks submitted Police Department Statistical Data relative to the number of budgeted officers, the population, case number and activity load. Vi Klaseen, 2295 Oakridge Drive, conveyed that she has participated in the Police Department's Ride-Along Program, and she was surprised by the amount of social work the officers provide the community. She noted that if the services the Womens' Refuge provides were not available, another program would have to be invented to take care of the problems. She said there is a need to care for the troubled people, and she supports the request of the Womens' Refuge for additional funds. Mr. Conley stated that it is unfortunate there is not more money available to put additional officers on the street. He opined that the issue will have to be addressed in the long run because staffing problems in the Police Department will not go away. City Manager Warren conveyed that during the Police Department's budget meeting, staff went through every line item down to a public address system. The item was cut from the budget and Mr. Conley stepped forward on his own and offered to purchase the system for the Police Department. On behalf of the City, Mr. Warren thanked Mr. Conley for his generous donation. Mr. Fitzpatrick stated that getting the community involved with the Police Department is key to improving law enforcement because there will never be enough officers on the street. Council Member R. Anderson summarized the following item considered by Council: 1) Increase the Police Department's budget by $25,000 for the SHASCOM allocation. Recess At the hour of 2:18 p.m., Mayor Kehoe declared the meeting in recess. At the hour of 2:29 p.m., Mayor Kehoe reconvened the meeting. Public Works Director of Public Works Galusha reviewed the Public Works Department budget including Engineering/Administration, Land Development and Transportation, Streets, Parking, Storm Drainage Utility, Water Utility and Wastewater Utility. Council Member Murray said he is in favor of adopting the overhead allocation for the department at the real amount (58%). He also favored adopting fee increases for enterprise funds on a regular basis. He explained that if the City determines that a fee increase is necessary, it should be adopted in July in conjunction with the budget. Mr. Murray noted that if there is a ten-year plan, it would be advisable to plug in tentative rate increases for planning purposes. City Manager Warren emphasized how important it is for a City Council to keep rate increases current so a City does not fall behind. He explained that once a City falls behind, it becomes almost politically impossible to catch up. Mr. Conley agreed that it is time to determine if utility rates are ahead or behind. Council Member R. Anderson summarized the following items considered by Council: 1) Direct staff to conduct an assessment of Public Works overhead and 2) Report to City Council on anticipating need for future rate increases. In response to Council Member Murray's question, City Manager Warren stated that it is staff's intention to review in-lieu fees this year. Electric Utility Electric Utility Director Lindley reviewed the Electric Utility Department's budget including power production activities. Mr. Lindley submitted photocopies of overhead projections used in the budget presentation. Council Member Murray questioned if the Electric Utility should be self- insured, and he asked if a total insurance program should be devised for the Electric Utility. Mayor Kehoe requested that the projections for the Electric Utility conform with other department's projections in next year's budget. Council Member R. Anderson summarized the following items considered by Council: 1) Direct staff to determine the pros and cons of continuing to self-insure the Electric Department; 2) Reconcile the Electric Department projections with other City departments in next year's budget, and 3) Determine the impact on the budget if the Texas Springs substation is postponed. General Services Director of General Services Masingale reviewed the General Services Department including the Warehouse, Fleet Maintenance, Building Maintenance, Benton Landfill, and Solid Waste. Non-Departmental Council Member R. Anderson noted that Council has already allocated funds from the Fire Department and Police Department for SHASCOM; however, Council must still address several other requests. City Manager Warren outlined the requests for additional funds from the general fund as follows: 1) City Manager's emergency fund--$20,000; 2) Two additional police officers--$25,000; 3) Womens' Refuge--$35,000; 4) Redding Symphony--$5,000, and 5) Development of the General Plan-- $70,000. Mayor Kehoe stated that it is the consensus of Council to request additional information on the Womens' Refuge and Redding Symphony before making a decision to provide funding. Council Member Murray also asked for a report on the request to increase the City Manager's emergency funds by $20,000. MOTION: Made by Council Member R. Anderson, seconded by Council Member McGeorge, to allocate $25,000 for two police officers for the COPS (Ahead) program. The Vote: Unanimous Ayes MOTION: Made by Council Member Murray, seconded by Council Member R. Anderson, to allocate $70,000 for work relative to preparation of the general plan. The Vote: Unanimous Ayes Council Member Murray requested that the information on Budget Page 26, Revenue Per Resident, be placed in columns. Recess At the hour of 4:10 p.m., Mayor Kehoe declared the meeting in recess. At the hour of 4:18 p.m., Mayor Kehoe reconvened the meeting. Carl Arness, 2216 Oakridge Drive, submitted a letter dated June 14, 1995, relative to the budget which is incorporated by reference herein. Mayor Kehoe asked if the City Council can take action on the budget this afternoon. City Attorney Wingate stated that wording on the agenda will only allow Council to adopt the budget in concept at this time. Council Member R. Anderson requested that next year's budget study session agenda provide Council with an opportunity to adopt the budget at the budget study session. MOTION: Made by Council Member R. Anderson, seconded by Council Member P. Anderson, to approve the 1995-96 budget as adjusted by Council, in concept, and direct staff to prepare a resolution formally adopting the budget for consideration by Council at its next regular meeting. Voting was as follows: Ayes: Council Members - P. Anderson, R. Anderson, McGeorge and Kehoe. Noes: Council Members - Murray Absent: Council Members - None ADJOURNMENT There being no further business, at the hour of 4:23 p.m., Mayor Kehoe adjourned the meeting. APPROVED: _______________________________ Mayor ATTEST: _____________________________________ City Clerk