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HomeMy WebLinkAboutMinutes - City Council - 1996-06-28 156 Redding City Council Special Meeting City Hall Conference Room 760 Parkview Avenue Redding, California June 28, 1996 9:00 A.M. The meeting was called to order by Mayor McGeorge with the following Council Members present: P. Anderson, R. Anderson, Kehoe, Murray and McGeorge. Also present were City Manager Warren, Assistant City Manager Perry, City Attorney Wingate, Public Works Director Galusha, Development Services Director Swanson, Police Chief Blankenship, Community Services Director Gorman, Administrative Services Director Starman, Fire Chief Wagner, Director of Electric Utility Lindley, Principal Planner Keaney, General Services Director Masingale, Finance Office Strong, Information Systems Operation Manager Erwin, Public Works Operation Manager Russell, Superintendent of Wastewater Craig, City Clerk Strohmayer and Assistant City Clerk Moscatello. Also present were Don Conley and Steve Seward, public liaisons during the budget review process. Budget Study Session (B-130-070) Mayor McGeorge welcomed the City Council, staff and the public to the budget study session. City Manager Warren presented the 1996-97 fiscal year budget message to City Council and submitted a list of significant budget or policy issues by department, a list of significant accomplishments by the City of Redding in 1995-96, and a partial list of projects and tasks for fiscal year 1996-97, which are incorporated herein by reference. Mr. Warren stated that the total City of Redding budget for fiscal year 1996-97 is $161.5 million. The general fund budget is$34.9 million which represents a 2.6% increase over fiscal year 1995-96. The increase can be attributed to costs relative to SHASCOM, two new Police Investigator positions and pre-negotiated increases in personnel costs. The Enterprise Funds budget is $128.2 million and the Internal Service Funds budget is $23.5 million. Mr. Warren stated that the Ten-Year Financial Plan for the General Fund indicates the City will end fiscal year 1996-97 with an 11.6% reserve. Mr. Warren reviewed the General Fund Ten-Year Financial Plan dated April 1, 1996, and requested that City Council accept the Plan. Mr. Warren stated that there are many issues which the City Council must face in the upcoming year; however, there are four issues of major importance which merit special attention of City Council and staff: (1) Proposition 62, (2) the Jarvis Initiative, (3) annexation issues and (4) electric utility restructuring. Mr. Warren introduced Mr. Don Conley and Mr. Steve Seward who participated in the department budget review process as public liaisons. He indicated that they, and Mr. Ron Giddings who also served, brought a wealth of information and experience to the process. Mr. Steve Seward complimented City Manager Warren and staff He noted that staff was very cooperative and instrumental in educating the public liaisons on the City's budget. Mr. Don Conley also thanked and complimented City Manager Warren and staff. He noted that the budget was easier to read this year and the presentation was excellent. Mr. Conley conveyed that his biggest frustration is the list of departments' unmet needs. He explained that more money is needed to do the job right rather than patch things together. Mr. Conley opined that the City's present funding sources will not keep up with its needs and Council must decide how it can increase revenue. He suggested that Council review and maintain its schedule of fees. Mr. Conley stated that the City has an excellent staff, and he would encourage anyone in the community to participate on the budget review committee. Mr. Ron Giddings submitted written comments on the proposed 1996-97 budget to the City Council, incorporated herein by reference, relative to general fund expenditures, other revenue sources, capital expenditures items, computers and establishing the identity of the City of Redding. 6/28/96 157 10-Year General Fund Financial Plan Administrative Services Director Starman reviewed the Ten-Year Financial Plan, incorporated herein by reference, which outlines the general fund cash flow projections, general fund revenue projections and general fund expenditure projects. Council Member R. Anderson recommended that City Council adopt a 3.5% rate of increase in the Transient Occupancy Tax(TOT)rather than 4%. Mr. Starman explained that a 1/2% decrease would represent an $88,000 loss of proposed revenue to the budget. Council Member P. Anderson conveyed that she is uncomfortable with the projected 5% increase in property tax, and asked if last year's property tax increase was 5%. Mr. Starman responded affirmatively. Council Member R. Anderson suggested that Council not tamper with the Ten-year Plan; but, Council should adopt the budget based on what Council believes will occur this year. Council Member Kehoe stated that staff is projecting funding for the two museums to discontinue after fiscal year 1999 and he believes this is unrealistic. He opined that while privatization of the museums is off to a good start, funding will probably not be eliminated. City Manager Warren noted that it is probably unrealistic for a City to not support its cultural arts and museums. Council Member R. Anderson suggested that the Ten-Year Plan be realistic in its projection of museum funding. Council Member Murray pointed out that the museums are on notice that funding will be eliminated, and he is hesitant to send any message other than funding will be cut. He added that if the museums do everything they can to raise revenue and then fall short, they can approach Council with a funding request. City Manager Warren stated that staff can give Council additional latitude by creating a line item in the Ten-Year Plan for contingencies. It was the consensus of City Council to accept the Ten-Year Financial Plan with the exception of maintaining projected revenue from the Transient Occupancy Tax (TOT) at 3.5%, and defer discussion on museum funding to a later date. Administrative Services Administrative Services Director Starman reviewed the budget for Administrative Services which includes Communications, Customer Service, Field Service, Finance, Information Systems, Mail Room/Courier, Purchasing, Reprographics and Risk Management. Council Member Murray noted that the budget document does not include information relative to the computer programming backlog in Information Systems. Mr. Starman responded that Information Systems' goal is to substantially complete the top ten programming projects prioritized by the Information Systems Users Group. Council Member Murray suggested that an indication of the programming backlog would provide the data to determine if the City has enough programmers. Council Member Kehoe requested that a specific goal to reduce the vehicle accident rate be listed as a part of the objective to evaluate and update the City's Injury and Illness Program by June, 1997, as stated on page 55. Council Member R. Anderson directed staff to reduce the amount of paperwork City Council is receiving. He also noted that Worker's Compensation claims are too high and a reduction in the number of claims should be a goal. Mr. Starman explained that many of the claims are insignificant, but they are still noted. Recess At the hour of 10:32 a.m., Mayor McGeorge declared the meeting in recess. At the hour of 10:47 a.m., Mayor McGeorge reconvened the meeting. 6/28/96 158 Community Services Community Services Director Gorman reviewed the Community Services budget which includes the Redding Museum of Art&History and Carter House Natural Science Museum, Convention Center, Convention & Visitors Bureau, Parks, Recreation, Parks In-Lieu Capital Projects, and Park Development Capital Projects. Mr. Gorman stated that the Redding Community Access Channel is not included in the budget because the Access Channel is undergoing privatization at the end of the month. Council Members R. Anderson and Murray felt that the objectives relative to outsourcing requiring policy decisions should be referred directly to the City Council, rather than the Tourism and Convention Commission because the Commission is an advisory body. Mr. Gorman acknowledged the Commission is an advisory body, however, the objective was for the Commission to review staffs proposals and make a recommendation to City Council. After discussion, Mayor McGeorge concluded that it would be appropriate for the Tourism and Convention Commission to review the goals and objectives relative to outsourcing prior to bringing those matters before the Council. Development Services Development Services Director Swanson reviewed the Development Services budget which included the budgets for Planning, Building, Capital Projects, Community Development, Airports and Geographic Information Systems. Council Member R. Anderson requested that a date for commencing the one-stop permit center be listed in the goals and objectives. He also recommended that the department's goal to develop the Redding Airport Business Park include not only the lease of land, but the sale of land. Council Member P. Anderson asked staff to quantify the reduction in plan review times. Mr. Swanson noted that large construction projects placed the Building Division behind schedule and staff is now beginning to catch up. He explained that staff cannot control the number or size of projects that come in; but, staff is examining outside contracting, staff is maintaining close communication with builders/developers, and shifting personnel to focus on plan review or inspections as necessary. Council Member Kehoe suggested that the department's goals be displayed in a manner similar to the performance measures with hard, quantifiable goals. Council Member Murray suggested that the City remove itself from plan checking metal buildings. He requested a report by the end of September on why the City must or does not need to plan check metal buildings. Mr. Swanson conveyed that he and Kent Dagg, representing the Shasta Builders Exchange, are meeting on this subject and a report should be ready in September. Mayor McGeorge said it may be beneficial to provide design guidelines to the real estate community for distribution to those who are purchasing property. He noted that this was an issue raised by the General Plan Task Force. City Manager Warren agreed and he pointed out that there are many developers who want to do a good job and go above and beyond normal expectations. Electric Utility Electric Utility Director Lindley reviewed the Electric Department budget including power production activities. Mr. Lindley submitted graphs and charts depicting the Electric Utility's 1996-97 budget request and reviewed the goals and objectives. Council Member Murray noted that due to Redding's efforts, Modesto-Santa Rosa-Redding Power (MSR) and the Transmission Agency of Northern California(TANC) have been able to reduce their consultant and administrative time and expense. He conveyed that the Northern California Power Association(NCPA) asked for an increase in funding, but Redding has not committed to that increase until the Electric Utility management audit has been completed. NCPA is on notice that the City is only committed to $18,000 for the coming year. Council Member R. Anderson requested that the date of completion of the Redding Power project be listed in the department's goals. 6/28/96 159 It was the consensus of City Council to adopt the Electric Department's budget as a planning tool with the provision that it be revisited in early September after the consultant's Electric Utility audit report is submitted. In addition, Council requested staff to forward the Electric Departments budget to the consultant for review and consideration at the earliest possible date. Relative to the impending electric utility restructuring, Council Member R. Anderson suggested that the reduction of stranded costs be included in the department's goals and objectives after the management audit. Recess At the hour of 12:18 p.m., Mayor McGeorge declared the meeting in recess. At the hour of 12:23 p.m., Mayor McGeorge reconvened the meeting. Fire Department Fire Chief Ken Wagner reviewed the budget for the Fire Department, including Administration, Operations and Fire Prevention. In response to Council Member Kehoe, City Manager Warren stated that the City is not able to place three-person crews on fire engines in the near or distant future without some type of financial trade- off Council Member Murray questioned why there is a projected increase in calls for medical service that is over and beyond the increase in population. He noted that the City should get a handle on the increase. Fire Chief Wagner assured Council that he will report back as to why the department is projecting an increase. Council Member P. Anderson requested that next year's budget list unmet needs in each department's budget. General Government City Manager Warren reviewed the budgets for the City Council, City Manager, City Clerk and City Treasurer. Council Member Murray asked why the City maintains its funds in numerous local banks. Director Starman explained that it is in the City's best interest to obtain the best rate on certificates of deposits and it allows the City to spread its business throughout the community. City Attorney City Attorney Wingate reviewed the budget for the City Attorney's office. Council Member Murray noted that there is no indicator of response time to other City departments established in the goals and objectives. Mr. Wingate noted that the office has instituted a tracking system. Non-Departmental Administrative Services Director Starman reviewed the Non-Departmental budget. He conveyed that there is $10,000 in this budget to replace plants and fix water systems for the landscape maintenance districts. Council Member Murray opined that the taxpayers should not fund the landscape maintenance districts. It was the consensus of City Council to delete $10,000 for the landscape maintenance districts from the general fund. Council Member Murray noted that the Redding Firefighters are sponsoring the Firefighters Combat Challenge in July. He added that it will be covered by ESPN and provide substantial advertising for the City. Noting that the firefighters have raised about $15,000 for the event, Council Member Murray explained that he would like Council to contribute an additional $5,000. Council Member R. Anderson said he would prefer not to contribute at this time. Council Member Murray suggested that staff bring a report before City Council in August to reconsider contributing if the need is there. 6/28/96 160 Council Member Murray stated that he does not want the cost of a building permit to fall below 100% of the recovery cost. He noted that there are no fee increases proposed in the Development Services budget and he would like staff to review the fee schedule and bring the matter before the Council. Development Services Director Swanson stated that he is reviewing development fees with Kent Dagg of the Shasta Builders Exchange. Council Member Murray stated that the study committee has had ample opportunity to review the fee schedule and if a consensus cannot be reached, it's time for Council to move ahead. General Services General Services Director Masingale reviewed the budget for General Services, Fleet Maintenance, Warehouse, Building Maintenance & Construction, Midtown Mall, Benton Landfill Closure/Monitoring and Solid Waste. In response to Council Member Murray's concern about meeting the State of California's mandate to divert 50% of the waste stream by the year 2000, General Services Director Masingale stated that staff is hoping for some legislative relief and plans to increase public participation in recycling and promote the sale of recycled materials. In light of AB939, Council Member Murray stated that he does not want to say there will not be a rate increase when there is a possibility of one. Council Member Murray said if the City has a plan to meet the mandates of the legislation, a cost accounting should be attached to it because the City may have to adopt a rate increase in 1999 to meet the mandate. Police Department Police Chief Blankenship reviewed the Police Department's budget including Administration, Field Operations and Investigations. Chief Blankenship outlined the results of the Community Oriented Policing program in the Parkview and Martin Luther King Park neighborhoods. He noted that the program has effected a significant reduction in crime in these neighborhoods. Chief Blankenship discussed the department's application for a COPS Universal Hiring grant and conveyed that it would provide the department with seven new police officer positions. He explained that, if granted, two officers will be assigned to the Career Criminal Apprehension & Tracking program, one officer will be assigned to Code Enforcement and four officers will be assigned to proactively target gang problems, hate crimes, high risk crime area surveillance and special assignments. Graphs depicting the cost to the City upon receipt of the grant, with and without participation by the school districts, were submitted. Council Member Kehoe asked if parents can be held accountable for the acts of their juveniles and if costs can be recovered from those parents. Chief Blankenship stated that the department will investigate the means to accomplish that goal. Recess At the hour of 2:54 p.m., Mayor McGeorge declared the meeting in recess. At the hour of 3:05 p.m., Mayor McGeorge reconvened the meeting. Public Works Director of Public Works Galusha reviewed the Public Works department budget including Engineering and Administration, Land Development and Transportation, Streets, Parking, Storm Drainage Utility, Water Utility, Development Funds and Wastewater Utility. Public Works Operation Manager Russell reviewed the Water Divisions budget. Mr. Russell submitted tables outlining the current rate structure and proposed rate structure and current connection fees and proposed connection fees for the Water Utility through the year 2005/2006. Public Works Director Galusha stated that a rate increase was not computed into the budget. Council Member Murray suggested that connection fees be considered at the same time as development fees and water rates be considered separately. 6/28/96 161 Superintendent of Wastewater Craig submitted a list of Wastewater Utility cost savings and efficiency improvements implemented since 1994. Also submitted were tables outlining the operating and maintenance fund cash balance with and without a rate increase over the next ten years and tables outlining the capital improvement fund cash balance with and without a fee increase over the next ten years. Council Member Murray stated that the annexation study currently underway will be incomplete if it does not address the impact of annexation on enterprise funds. Budget Issues Council Member Murray opined that a home computer purchase program for employees should be developed using either a payroll deduction method or by offering a discount. He stressed that it should refrain from using any staff time or energy. Council Member Kehoe conveyed that he would like to see a complete staff report before he could support such a program. Council Member Murray noted that it may be possible to create a mutually beneficial long-range joint venture with Shasta County for animal control services. Administrative Services Director Starman stated that staff will follow up on the suggestion; however, he noted that the City has three years remaining on a five-year contract. Council Member Murray suggested that City Council Members participate in the League of California Cities workshop in July regarding Proposition 62, Electric Utility restructuring and the Jarvis Initiative. Mayor McGeorge requested that Council receive handouts relative to the Council Agenda a day or two prior to the meeting to give Council time to assimilate the information. Council Member P. Anderson complimented staff on the budget format and noted that it has improved every year. 111 Resolution Adopting Budget MOTION: Made by R. Anderson, seconded by P. Anderson, that Resolution No. 96-130 be adopted, a resolution of the City Council of the City of Redding adopting and approving the 1996-97 annual budget as presented with the exception of(1) projecting revenue from the Transient Occupancy Tax at the rate of 3.5%; (2) eliminating $10,000 from the Non-Departmental budget for landscape maintenance districts; (3)reducing funds in the amount of$141,000 for wood processing equipment in the General Services budget, and (4) reducing the budget in the Public Works Streets Division to reflect the reduction in ISTEA revenue which reduces the amount of funds for street overlay. Voting was as follows: AYES: Council Members - P. Anderson, R. Anderson, Kehoe and McGeorge NOES: Council Members - Murray ABSENT: Council Members - None Resolution No. 96-130 is on file in the office of the City Clerk. Council Member Murray objected to reviewing and adopting the budget on the same day. He opined that members of the community should be afforded an opportunity to examine and comment on the budget before Council adopts it. Public Comment Carl Arness, 2216 Oakridge Drive, commented on the City's Insurance Services Office (ISO) fire rating as the City grows and the Fire Department's ability to respond, deregulation of the electric utility industry and how it relates to purchasing PG&E facilities, and street maintenance. Frank Strazzarino, representing the Chamber of Commerce, stated that the Chamber is willing to participate on a committee to review the fee schedule. Mr. Strazzarino conveyed that the Chamber does not want to tell Council what to do, but they always welcome the process. Council Member P. Anderson clarified that there are no fee increases built into the budget. Noting that Council has not had the opportunity to discuss Proposition 62 on today's agenda, Council 6/28/96 162 Member R. Anderson suggested that Council adjourn the meeting to discuss Proposition 62. Dean Ward, Chairman of the Board of the Chamber of Commerce, conveyed that the Chamber supports the City's efforts to proceed as it deems appropriate in dealing with Proposition 62 issue. Adjournment There being no further business, at the hour of 4:05 p.m., Mayor McGeorge declared the meeting adjourned to July 2, 1996, at 6:00 p.m., at the City Council Chambers, 1313 California Street, Redding. APPROVED: j dr- David L f Borg;, ayor ATTEST: goz_x_rez, 411, Connie Strohmayer, City Cle r> 6/28/96