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HomeMy WebLinkAboutMinutes - City Council - 1997-06-18 151 City Council, Special Meeting City Hall Conference Room 760 Parkview Avenue Redding, California June 18, 1997 9:00 A.M. The Special Meeting was called to order by Mayor P. Anderson with the following City Council Members present: R. Anderson, Kehoe, McGeorge, Murray and P. Anderson. Also present were City Manager Warren, Assistant City Manager Perry, Deputy City Manager Starman, Finance Officer Strong, Management Analyst II Davis and City Clerk Strohmayer. RESOLUTION - Presentation and Adoption of 1997-98 and 1998-99 Fiscal Year Budgets (B-130-070) City Manager Warren presented the fiscal year 1997-98 budget message to City Council. Mr. Warren conveyed that the budget is extremely lean with an emphasis on efficiencies. He conveyed that service levels will remain the same and will increase in some isolated areas. Mr. Warren stated that the overall budget totals $182.7 million, of which the General Fund totals $36.5 million. In the overall budget, there are three major capital projects (Civic Center, Turtle Bay Pedestrian Bridge & Glass Beneficiating Project) that make up the major differences between the previous year's budget and the 1997-98 budget. He noted that funds for all three of these projects have been set aside and additional funds for these projects will come from outside sources. City Manager Warren referred to a memo to City Council dated June 13, 1997, Amendments to the Proposed Budget, which is incorporated herein by reference. He conveyed that the list of proposed budget amendments includes additional funding for the on-call firefighter program. He explained that program funds were originally reduced to help bring the budget in balance; however, he is now recommending that some of this funding be reinstated. City Manager Warren referenced the Ten- Year Capital Improvement Plan and noted that the document will be referred to the Planning Commission for review and then brought to the City Council for adoption. City Manager Warren stated that projected revenues total $176.9 million and some funds, including the General Fund and several of the Enterprise Funds, will be required to utilize existing reserves to balance the budget. He noted that these reductions are planned and factored into the long-range financial plan for each fund. He conveyed that no new revenue sources or revenue increases are factored into the budget other than those previously adopted by Council. City Manager Warren conveyed that staff is still working with the Shasta Builder's Exchange on formulating a new development fee structure. City Manager Warren conveyed that two enterprise funds, the Airport and Convention Center, are being subsidized by the general fund in the amount of$142,000 and $186,000, respectively, and the other enterprise funds are self-sufficient. Based on current long-range financial projects for the Water and Wastewater funds, he said it may be necessary to consider a minor rate increase in 1998-99. City Manager Warren stated that of the 68 management goals, approximately two-thirds were completed in this fiscal year and the remaining goals are well on their way to being completed in the next fiscal year. City Manager Warren recalled that the concept of a two-year budget was considered a few years ago. Mr. Warren stated that staff, as well as the citizen liaisons, recommends that the City implement a two-year budget. He encouraged Council to adopt a two-year budget under the following conditions: 1) each department and Enterprise Fund stays within their Ten-Year Financial Plan and any recommendation to go beyond those parameters is brought to City Council for consideration; 2) all new positions added to the budget will be reviewed by City Council, and 3) any programs or projects being eliminated or added to the budget will be reviewed by City Council. Mr. Warren pointed out 6/18/97 152 that staff spends many hours working on the budget and that this time could be spent serving the public. City Manager Warren thanked the citizen budget liaisons, Lisa Reiser and Mike Pohlmeyer, for their participation in the budget process and attendance at the departmental budget hearings. Mr. Warren stated that they provided insight and assistance. Mr. Warren also thanked staff for their hard work and participation. Mike Pohlmeyer, representing the Greater Redding Chamber of Commerce, stated that he appreciated the opportunity to participate in the budget process, and he commended the City Council for including citizens in the process. Mr. Pohlmeyer recommended that Council adopt the two-year budget process. He noted that the budget process takes a tremendous amount of staff's time, and he believes there are reliable checks and balances in place. Mr. Pohlmeyer said he was impressed with staff's knowledge and their dedication to the City. He said the budget is as good as it can probably be; and although he is discouraged by the number of unmet needs, he hopes there will be additional money to fund those needs. Mr. Pohlmeyer conveyed that the revenue assumptions appear to be conservative but wisely made. Mayor P. Anderson stated that Lisa Reiser was out of town on business; however, she submitted a letter to City Council dated June 16, 1997, which is incorporated herein by reference. In brief, Ms. Reiser states that 1) it is important to keep the current year's budget in line with future projections, 2) the costs associated with fleet maintenance should be carefully monitored and reviewed to determine other alternatives, 3) special emphasis should be placed on the ability of Information Systems to keep pace with technological changes and 4) a two-year budget process should be adopted. Deputy City Manager Starman reviewed the Ten-Year Financial Plan and summarized the revenue and expenditure assumptions for 1997-98. He conveyed that the general fund departments' budgets increased overall by the rate of inflation, or 3.3%. Administrative Services Deputy City Manager Starman reviewed the Administrative Services budget which includes the following divisions: Communications, Customer Service, Finance, Information Systems, Reprographics, Purchasing and Risk Management. Mr. Starman noted that there are two proposed changes in Information Systems staffing including the transfer of one position from Customer Service to Information Systems and the receipt of a two- year grant by the Police Department for a new network technical position. Mayor P. Anderson asked for a status report on where Information Systems stands relative to the backlog of programming requests and the use of custom programming versus off-the-shelf software. Deputy City Manager Starman stated that staff will provide a status report to Council. Council Member Murray questioned if the backlog is so great that it would be of benefit to contract out some of the programming requests. He asked if there is enough staff to keep up with the programming needs and suggested that a cost benefit analysis be prepared to determine the most economical course for Information Systems to follow. Council Member Murray stated that he would be interested in knowing how the City's Workers' Compensation claims compare to other cities. He questioned if the City is performing comparably well or not. Community Services Director of Community Services Gorman reviewed the Community Services Budget which includes the Museums, Convention Center, Visitors Bureau, Parks and Recreation. 6/18/97 153 Mr. Gorman asked Council to consider appropriating funds to contract out the position of Tourist Bureau manager. He indicated that it would cost approximately$30,000 and it can be funded without altering the budget. Council Member Kehoe questioned if an organization could provide that service. City Manager Warren suggested that Council review the entire budget first and then come back to this item. Council Member R. Anderson opined that this is an important position. Council Member Murray inquired as to the advantage of contracting this position over hiring a City employee. Mr. Gorman explained that contracting this service will continue to move the department in the direction of privatization. Development Services Director of Development Services Swanson reviewed the Development Services budget which includes Planning, Building, GIS, Airports and Community Development. Council Member Murray asked if there is a demand for T-hangars at the Airport. He pointed out that if General Fund subsidies for the Airport are to be eliminated, the Airport must be run like a business. Council Member Murray pointed out that debt is the Airport's largest expense; and if a loan cannot be paid back within the term of that loan, the Airport should not take on that debt. Council Member Kehoe questioned if it is feasible to discontinue the hangar business. Mr. Swanson said it is legally possible, but staff should determine if it is economically feasible. Council Member R. Anderson suggested that consideration be given for privatizing the T-hangars. He asked if the sale of industrial land could be used to reduce debt, and Mr. Swanson replied affirmatively. Mr. Swanson explained that the City is not currently servicing debt on the Industrial Park. It was the consensus of the City Council to confirm that any monies advanced to the Airports be repaid to the General Fund once the Airport goes into the black. With regard to the paving of Old Oregon Trail which was included in the Airport's list of unmet needs, Mr. Swanson advised that the road would allow public access to the Evergreen facility; however, he was not sure if access to the drag strip would be provided. Council Member Murray questioned the rationale behind building two side-by-side roads. City Manager Warren stated that staff will assess the options available to the City. Recess At the hour of 10:40 a.m., Mayor P. Anderson declared the meeting in recess. At the hour of 10:45 a.m., the meeting was reconvened to regular session. Electric Utility Department Assistant City Manager Perry reviewed the Electric Utility budget which includes the Electric Department, Redding Power Plant and bond funded projects. Mayor P. Anderson pointed out that if the City adopts a two-year budget, it will still be necessary to review the Electric Department's budget next fiscal year. Mr. Perry confirmed this and explained that there will be many key issues and matters to consider. Council Member Murray noted that the Electric Utility's budget may be considered a place holder until Council has an opportunity to review it more extensively in October. Fire Department Fire Chief Wagner reviewed the Fire Department's budget which includes Administration, Operations and Fire Prevention. • Council Member Murray.expressed concern about the Fire Department providing services outside the scope of firefighter duties and questioned if ambulance services should be the first provider on 6/18/97 154 medical emergencies. Council Member Murray requested a comprehensive analysis on the issues surrounding first response and asked staff to look aggressively at how the City is spending its money in this area. Mayor P. Anderson pointed out that ambulance companies cannot afford to locate in as many areas as fire stations are located. She noted that volunteer fire departments in Shasta County provide first response on medical emergencies. Mayor P. Anderson explained that many cities employ a system in which dispatchers screen requests for 911 service to reduce the service calls on which firefighters are sent. She conveyed that SHASCOM is reluctant to employ this system. Fire Chief Wagner stated that a comprehensive analysis will be provided to Council. He noted that there is a growing population of individuals who do not maintain a long-term medical provider and choose to access medical professionals by dialing 911. Chief Wagner expressed hope that SHASCOM can be part of the solution. Deputy City Manager Starman noted that the draft budget was amended to include additional funds for on-call fire fighters. GENERAL GOVERNMENT City Council Deputy City Manager Starman reviewed the City Council budget and stated that it is status quo for the upcoming fiscal year. City Manager Deputy City Manager Starman reviewed the City Manager's budget. Council Member Murray said he would like to see departments graded by their customers. He noted that the primary customers of many departments are other City departments. Council Member Murray emphasized that it would be a tool to help establish goals and objectives and determine how each department is responding to their customer's needs. City Manager Warren replied that some departments are already doing this. Council Member Kehoe asked if there will be a nexus for performance evaluation to which Mr. Warren responded affirmatively. Council Member R. Anderson questioned if a separate account should be designated for retired employees who purchase insurance. Deputy City Manager Starman stated that it could be consolidated into one account and charged back to the relevant fund. City Clerk City Clerk Strohmayer reviewed the City Clerk's budget which includes the Records Division. City Treasurer City Treasurer Linville reviewed the City Treasurer's budget. Council Member Murray suggested that different procedures be developed for placing idle funds in banks. Noting that idle funds are spread throughout various banks, he suggested that a formula be developed that combines a bank's asset strength with how much it is working and investing within the community. Council Member Murray qualified that the formula should do nothing to make the City's funds less secure or earn less interest. City Treasurer Linville stated that she will report back to Council. Council Member Kehoe questioned if it is legally permissible to implement such a policy. Noting that City Council gave the City Treasurer direction on investments last year, Mayor P. Anderson expressed concern about changing direction again. 6/18/97 L_ 155 City Attorney City Attorney Wingate reviewed the City Attorney's budget. Human Resources Human Resources Manager Bachman reviewed the Human Resources budget. Mr. Bachman noted that the budget reduction is attributed to the Public Employees Retirement System rebate and other savings achieved from the health insurance program. Non-Departmental Management Analyst II Davis reviewed the Non-Departmental budget which includes General Fund Capital Projects, General City Projects, Animal Regulation and General Fund Debt Service. Council Member Murray suggested that the City place its animal regulation services out to bid prior to expiration of its contract with Haven Humane Society. He noted that by partnering with Shasta County, cost savings could be achieved. Council Member Kehoe concurred and indicated there may be more interest than previously expressed. Deputy City Manager Starman recalled that the City previously undertook a competitive bid process for animal regulation services and Haven Humane Society was the only one that responded at that time. General Services Director of General Services Masingale reviewed the General Services budget which includes Solid Waste, Fleet Management, Building Maintenance, Midtown Mall and Benton Closure and Monitoring. Solid Waste Manager Miralles and Fleetshop Supervisor Lacy were also present. Council Member Murray said he is concerned about the City's fleet maintenance operation. He suggested that the Police Department put its fleet maintenance out to bid for one year to determine if it can operate more efficiently and economical. He added that General Services could also bid on the maintenance contract. Council Member Murray opined that if Fleet Maintenance does not fix a vehicle problem the first time, it should provide free service until its fixed. Mr. Masingale explained that all fleet maintenance costs are allocated to a department and the system does not facilitate not charging on a return trip. City Manager Warren assured Council that staff will take a hard look at Fleet Maintenance and compare its practices to the private sector. Council Member Murray reiterated that a better system of controls is needed. General Services Director Masingale stated that based on the Solid Waste Utility Ten-Year Plan, a rate increase will be necessary in the 1998-99 fiscal year. He explained that tipping fees for the West Central Landfill are expected to increase 16%, electric utility rates are increasing 23% and water and wastewater rates will also increase. Council Member R. Anderson noted that it may not be necessary to have high reserves in the out years and perhaps the utility can get by with no increase in the second year or less of an increase in the other two years. Police Department Police Chief Blankenship and Police Captain Byard reviewed the Police Department's budget which includes Administration, Field Operations and Investigations. Council Member Murray asked if the benefits of the Neighborhood Watch program should be advertised to increase participation. Chief Blankenship explained that the Department's goal to increase resident involvement was specifically addressed toward the Martin Luther King Park area, and the Department is working with Shasta County Citizens Against Racism to encourage involvement in neighborhood revitalization. Council Member Murray asked if Neighborhood Watch programs are increasing, and Chief Blankenship explained that there are over 450 neighborhoods involved in the program and the results are positive. 6/18/97 156 Mayor P. Anderson pointed out that the Police Department has made a big difference in the last five years and she is pleased to have such a successful Police Department. Public Works Director of Public Works Galusha reviewed the Public Works budget which includes Administration/Engineering, Land Development and Transportation, Streets, Parking, Water Utility, Storm Drainage Utility and Wastewater Utility. Public Works Director Galusha presented a Water Plant Operator Workload Indicators worksheet to Council. Mr. Galusha stated that a new position has not been added since 1981, and there is ample justification for adding a new water plant operator position. Council Member Kehoe asked if there are compelling reasons not to add the position. City Manager Warren explained that the City is trying not to increase personnel, and the Utility's rate structure will be impacted. He explained that a rate increase will be necessary in one to two years. City Manager Warren explained that Public Works was the first department to participate in the budget review process and he was probably too conservative when he deleted the original request for the position. He conveyed that there is a need for the position and if it is not added this year, it will be necessary to do so next year. Council Member Murray said he is inclined to adopt the budget as presented and reconsider this matter at a regular City Council meeting. Council Member Murray noted that northern California water interests are coming under attack and it is important to protect the City's interests. City Manager Warren conveyed that City Attorney Wingate is very knowledgeable of these issues and staff will provide a report to Council. Council Members Murray and Kehoe noted that Council has been waiting a long time for the development community to provide input on development fees; and if Council does not hear from them within 60 days, Council should move ahead and consider the development fee structure. It was the consensus of Council to approve the budget for a two year period, provided that Council has the opportunity to review any changes to the budget. Deputy City Manager Starman stated that staff will provide a better format for the two-year budget in the future. MOTION: Made by Council Member R. Anderson, seconded by Council Member Kehoe, that Resolution No. 97-111 be adopted, a resolution of the City Council of the City of Redding adopting and approving the 1997-98 annual budget and the 1998-99 annual budget with the conditions set forth in the resolution. Voting was as follows: Ayes: Council Members - R. Anderson, Kehoe, McGeorge, Murray and P. Anderson Noes: Council Members - None Absent: Council Members - None Abstain: Council Members - None Resolution No. 97-111 is on file in the office of the City Clerk. 6/18/97 157 ADJOURNMENT There being no further business, at the hour of 12:22 p.m., Mayor P. Anderson declared the meeting adjourned. APPROVED: Mayor ATTEST: /o~cz:‘, r City Clerk 6/18/97