HomeMy WebLinkAboutMinutes - City Council - 1999-06-21 152
Special Meeting, Redding City Council
City Hall Conference Room A
760 Parkview Avenue
Redding, California
June 21, 1999 3 p.m.
The Special Meeting of the City Council was called to order by Mayor Anderson with the following
Council Members present: Cibula, Kight, McGeorge, Pohlmeyer and Anderson.
Also present were City Manager Warren, City Attorney Wingate, Assistant City Manager Perry,
Deputy City Manager Starman, Public Works Director August, Police Chief Blankenship,
Development Services Director Swanson, Fire Chief Wagner, Administrative Services Director
Bachman, Support Services Director Kersten,City Treasurer Clark,Finance Officer Strong,Electric
Program Supervisor Nichols, Budget Officer Davis, Senior Planner Hanson,City Clerk Strohmayer
and Assistant City Clerk Moscatello.
RESOLUTION - Adopting 1999-2001 Biennial Budget and
RESOLUTION - Amending Council Policy 407 (Reinvestment of Property Sales) and Adopting
Council Policy 420(Appropriation Transfers Between Years)and 421 (Reserve Balances in Internal
Service Funds)
(B-130-070 & A-050-060-055)
Mayor Anderson stated that the budget presented to City Council is balanced. He noted that there
were many worthwhile projects that the City Manager was not able to recommend for approval in
order to maintain the 5%reserve throughout the City's ten-year plan. Reiterating that there are many
projects Council Members would like to see funded,he asked Council Members to recommend how
a project should be funded if they want to add additional projects.
City Manager Warren stated that the biennial budget process is more comprehensive and efficient.
He stated that the budget is very lean and after the initial Finance Division review, $2.7 million had
to be cut from the general fund budget. Mr. Warren explained that the budget is revenue driven,and
the overall goal is to maintain services pursuant to Council's direction. The General Fund budget
totals $38.3 million for fiscal year 1999-00 and $39.0 million for fiscal year 2000-01.
Mr. Warren stated that the Airport Fund and Convention and Tourism Fund are balanced and on a
positive financial footing. Noting that the City has been subsidizing these funds up to several
hundred thousand dollars per year, he conveyed that in concert with the City Council,Development
Services Director Swanson, Community Services Director Gorman, Airports Manager Dinger, and
Senior Planner Hanson put forth a tremendous amount of effort to bring these budgets in line.
Mr. Warren stated that Friends of the Library asked the City to increase its $160,000 annual
contribution to the library by $58,334. He explained that staff is recommending approval of these
additional funds contingent upon receipt of matching funds from Shasta County and private
donations. These additional funds in the amount of$175,000 would nearly double the library's
operating hours to 60 hours per week.
Noting that the Redding Plunge(Plunge)municipal swimming pool is badly in need of renovation,
Mr. Warren explained that it will cost approximately$1.2 million to renovate the Plunge. He stated
that the recommended budget includes $30,000 annually for debt service for improvements.
Mr. Warren requested$5,000 in the Non-Departmental Division be moved from Animal Regulation
to Community Special Events for community events. He explained that groups approach staff
during the year requesting funds or staff services to hold community events, and it would be
advantageous to have some additional funds to meet these requests.
Mr. Warren noted that enhancing fire services by increasing the number of personnel on a fire engine
from two to three and the need for a new fire station in the northeastern portion of the City are
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significant issues. He conveyed that Fire Chief Wagner has been creative in developing a method
to use overtime for two more units that would cost$130,000 beginning in 1999-00. Mr.Warren also
recommended that Council consider appointing an ad hoc committee to explore the idea of putting
some sort of tax override to a vote of Redding's electorate to fund enhancements for fire protection.
Mr. Warren outlined the City's list of unmet needs:
• Contingency Fund ($50,000 - $75,000)
• Fire Overtime ($45,000 - $130,000)
• The Plunge ($50,000)
• Cable Consultant ($35,000)
• Convention Center
• Drag Strip
• Economic Development Infrastructure ($5,000,000 - $10,000,000)
• Fire Station in northeast Redding ($1,000,000)
• New Library
• Park Maintenance Position ($40,000)
• Police Station
• Property Acquisition ($100,000/year)
• Sports Complex
• Street Improvements
Noting that all items listed are needed, he prioritized his recommendation to Council as follows:
contingency funds in the amount of$50,000 to $75,000; Fire Department overtime in the amount
of$45,000 to $130,000 and enhancements to the Plunge in the amount of$50,000.
Mr. Warren stated that the City has sound infrastructure and is well positioned for the future. He
thanked David Scott and Mark LaSalles for participating as community liaisons during the budget
process. Noting that it was a real team effort to bring the budget into line, he thanked department
directors for their assistance.
David Scott stated that he was very impressed with the caliber of presentations by directors. Noting
that directors requested funds in order to provide better service to the community, he said he felt
better as a citizen and tax payer for having participated in the process. Mr. Scott said it is difficult
to cut funds for worthwhile projects. He expressed his appreciation for having been given the
opportunity to participate.
Mark LaSalles stated that the presentations were excellent and he was impressed with the depth of
knowledge and conciseness of staff. He said everyone worked together for the good of the entire
City, and there was creativity in leveraging of money. Mr. LaSalles noted that Council made the
tough decision to increase utility rates; but staff is behind Council and working hard to bring the
rates down on time, or before. He pointed out that the Airport and Convention Center funds are in
the black, and the $2.7 million in funding that was cut from the general fund was totally justified.
Mr. LaSalles expressed concern about the need for additional fire personnel and a new fire station
and said the dollars are just not available. Noting that the City is moving into a growth phase, Mr.
LaSalles noted that the City will need additional revenue sources.
On behalf of Council, Mayor Anderson expressed appreciation to David Scott and Mark LaSalles
for participating in the budget process.
Administrative Services Director Bachman stated that a minimum 5%reserve is maintained in the
general fund budget during the ten-year plan. The General Plan reserve ranges from a high of 8.7%
in fiscal year 2001-02 to a low of 5.6% in fiscal year 2005-06. He conveyed that revenue
assumptions during the biennial budget are as follows: property tax revenue is assumed to increase
by 4.0% per year; sales tax revenue will increase by 4.0%; Transient Occupancy Tax will increase
by 4.0%;revenue from other taxes will increase by 4.0%per year;revenue from licenses and permits
will increase by 4.0%;revenue from fines and penalties will increase by 4.0%; motor vehicle in-lieu
fee revenue is assumed to increase by 6.0% and revenue from other governmental agencies will
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increase by 3.0%. Mr.Bachman indicated that personnel costs,as well as operating and capital costs
are assumed to increase by 3.0%per year.
Mayor Anderson expressed concern about projecting sales tax increases of 4.0%per year. He opined
that the City will not receive that much increase over the next two years because the City will not
experience the kind of population growth necessary to support it.
Administrative Services
Administrative Services Director Bachman reviewed the budgets for Finance,Personnel,Volunteer
Services and Risk Management. Mr. Bachman noted that one of the new positions recommended
by the City Manager is the Human Resources Manager. He explained that backfilling that position
will allow him to spend more time on finance issues and special projects. Explaining that funding
for the new position has been made possible through charging appropriate staff time to the Employee
Group Health Fund, Mr. Bachman said that there are sufficient resources to cover the cost of the
position without an increase in group health insurance rates.
Community Services
Senior Planner Hanson reviewed the Community Services budget which includes the Convention
Center, Convention and Visitors Bureau, Recreation and Museums. Mr. Hanson stated that the
budget is balanced. He said the completion of the energy retrofit project at the Convention Center
will reap benefits of approximately $750,000 in the value of new buildings systems and excess
energy savings. Staff will also investigate possible funding sources for renovation of the Plunge.
Mr. Hanson said they look forward to enhancing the quality of life in the community.
Council Member Cibula stated the Plunge is a great asset to the community, and he recommended
that it be a high priority for additional funds.
Development Services
Development Services Director Swanson reviewed the Development Services budget including
Planning, Building, Geographic Information Systems and Airports. Mr. Swanson stated that the
budget is status quo. He conveyed that an additional $60,000 has been budgeted in the Building
Division for outside consulting plan check services in an effort to keep pace with the increased
workload and meet desired plan review turn around times.
Mr. Swanson reported that the Airports fund does not require a general fund subsidy in either fiscal
year. Mr. Swanson stated that the Airport Operations Manager has been included in the budget as
a place-holder, but will not be filled until an analysis is done at least six months into fiscal year
1999-00 to determine if it is both affordable and necessary.
Electric Department
Electric Program Supervisor Nichols, representing Electric Utility Director Feider, presented the
Electric Utility budget. Mr. Nichols stated that the proposed budget is $86,266,141.00, which is a
5.0% decline from fiscal year 1998-99. The proposed budget for fiscal year 2000-01 is
$75,202,113.00, which represents another 12.9% decline. Mr. Nichols explained that most of this
decline is related to the reduction of a power contract payment to PacifiCorp;however,the reduction
is completely offset by a related reduction in wholesale power revenue from PacifiCorp. Therefore,
the net budget impact is zero.
Fire Department
Fire Chief Wagner reviewed the Fire Department's budget. Chief Wagner stated that the fiscal year
1999-00 budget totals$7,479,610.00, which represents a decrease of$494,195. He explained that
this decrease is related to a decrease in capital lease payments and rolling stock replacement funds.
Fire Chief Wagner stated that the requested budget for 2000-01 totals$7,687,715.00,an increase of
$208,105. This increase is related to an increase in the Paid-On Call Firefighter's Program and
materials and supplies.
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Council Member Kight stated his commitment to securing three-person fire engines in the next few
years, and requested that additional fire staff be considered by Council.
City Council, City Manager and Community Development Division
Deputy City Manager Starman related that these budgets are status quo.
City Clerk
City Clerk Strohmayer reviewed the City Clerk and Records Management Division budgets. Ms.
Strohmayer conveyed that the budgets are status quo, with the noted exception that in-house courier
service will be transferred to another division after the new Civic Center is built, and one vacant
Records Management position will not be replaced in preparation for the implementation of the
document imaging program.
City Manager Warren indicated there will be some extra money in the budget, and the City Clerk's
office may be able to use some of that money to provide part-time personnel on the first floor
licensing division. He indicated that staff may come back mid-term if it is determined that additional
personnel is necessary.
City Treasurer
City Treasurer Clark stated that the City Treasurer's budget is status quo.
City Attorney
City Attorney Wingate stated that the City Attorney's budget is status quo.
Non Departmental
Administrative Services Director Bachman reviewed the Non Departmental budget. He recalled that
the City Manager outlined a request to add $5,000 to the outside contingency fund for Community
Special Events. For example, Mr. Bachman noted that during budget preparation, a budget request
was received from Wings and Wheels for a community event. He explained that additional
contingency funds will allow staff to efficiently process small additional requests during the year. Mr.
Bachman stated that funds can be found from within the Non Departmental budget for this purpose.
Relative to the library, Mr. Bachman explained the budget provides for a two-year funding
commitment only.
Police Department
Police Chief Blankenship reviewed the Police Department budget. He noted that crime was down
in 1998 and he attributed part of that success to the Neighborhood Policing effort, the community
clean up program and the cooperation between City departments to remove blight in the community.
Chief Blankenship noted that the department has worked hard to identify and procure grants for
public safety.
Public Works
Public Works Director August reviewed the Public Works Department budget which includes
Engineering, Streets, Storm Drain Utility, Water Utility and Wastewater Utility. Mr. August noted
that pursuant to Council's recent directive, water and sewer rates will increase over the next five
years. He expressed concern about the Storm Drain Utility and noted that the utility will be impacted
by federal regulations being imposed in 2000-01. Mr. August noted that revenue may need to be
augmented to meet those needs.
Solid Waste
Assistant City Manager Perry reviewed the Solid Waste Division budget. Mr. Perry recalled that
Council adopted rate increases over the next five years. He conveyed that Solid Waste will automate
green waste collection during the next two years.
Support Services
Support Services Director Kersten reviewed the Support Services Department budget which includes
Purchasing, Parks Maintenance, Midtown Mall, Customer Service, Reprographics, Information
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Systems, Communications, Building Maintenance and Fleet Maintenance.
Mr. Kersten stated that major issues in this budget involve Information Systems and Parks
Maintenance. He explained that Information Systems is making progress toward meeting the
programming needs of the departments in spite of Y2K, and additional median maintenance and Civic
Center landscaping will impact Parks Maintenance personnel and budget.
Public Comment
Margie Cantrell expressed her concern about the equity of imposing traffic impact fees and the need
to improve street infrastructure to strengthen economic growth. Noting that good commercial
property is located along Twin View Boulevard, Ms. Cantrell recommended street improvements
along Twin View Boulevard to enhance growth in that area.
Ms. Cantrell indicated her understanding that the fast pitch ball park will be torn down after the Civic
Center is built and the community was not informed of this. She also suggested that staff include the
public in the planning process for the Canby-Hilltop/Highway 299 improvements.
Administrative Services Director Bachman clarified that the City has no intention of eliminating the
fast pitch ball park. Assistant City Manager Perry added that the two smaller ball parks are also
protected.
Carol Salani, representing Friends of the Library, stated that the pledge goal set by the Friends of the
Library has been fully attained. She explained that the pledges were obtained from the private sector
under the premise that both the City of Redding and Shasta County would participate in the
partnership. If Shasta County and City of Redding do not participate, the pledges are null and void.
Ms. Salani explained that the additional funds will extend library hours and enable a children's
librarian to be hired. On behalf of Friends of the Library, Ms. Salani expressed their appreciation for
Council's support.
In response to Mrs. Frances Jenkins, Administrative Services Director Bachman outlined the list of
City capital projects which will be funded from Community Development Block Grant funds:
$45,000 for downtown facade; $305,000 for South Market Street improvements; $54,000 for ADA
ramps; $51,000 to remodel old City Hall; $25,000 to resurface play grounds, $30,000 to make
sidewalk improvements in the Parkview neighborhood and$22,000 for code enforcement.
Mrs. Jenkins recommended that Council prioritize Fire Department overtime, economic development
infrastructure and the convention center if discretionary funds are available.
Frank Strazzarino, Executive Director of the Chamber of Commerce, complimented staff on the
budget and conveyed that the budget document is very readable. He congratulated the City Manager
for maintaining a net increase of two employees, and pointed out that the City has done a good job
of keeping the number of additional personnel down. He encouraged Council to do whatever they
could to encourage economic development.
RECESS
At the hour of 4:52 p.m., Mayor Anderson declared the meeting in recess.
At the hour of 4:58, p.m., Mayor Anderson reconvened the Special Meeting.
Funding for Special Projects
Mayor Anderson asked Council to consider any changes to the budget. Mayor Anderson noted that
additional library funding is contingent upon Friends of the Library and Shasta County providing
matching funds.
Council Member Pohlmeyer said he would support additional funding to the library contingent on
matching funds only being received from Friends of Library.
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Mrs. Salani stated that Friends of the Library would have to contact 380 groups to determine if they
were still amenable to pledging their money without receiving matching funds from Shasta County.
Mayor Anderson pointed out that it puts more leverage on each partner if their funds are contingent
on the other.
Council Member Cibula inquired if funding was contingent on matching funds and one of the parties
did not fulfill their obligation,could Council revisit the issue. City Manager Warren assured Council
that the money is in the budget and the matter could be revisited.
Noting that he toured the library and was very impressed with the facility, Council Member
McGeorge agreed with Council Member Pohlmeyer and said he is very pleased with the private
sector's contribution. Council Member Kight concurred with Council Members Pohlmeyer and
McGeorge.
MOTION: Made by Council Member Kight, seconded by Council Member Pohlmeyer, to provide
additional funding to the Library in the amount of$58,333 per year for two years contingent only
upon matching funds being received from the Friends of the Library. The Vote: Unanimous Ayes
Council Member Cibula expressed his support for renovation of the Plunge,and recommended that
the Plunge be considered a high priority item if additional funds should become available. Council
Member Cibula recommended that funds for Fire Department overtime and remaining monies up
to$50,000 for Plunge renovation be included in the budget. Recognizing that sufficient funds may
not be available now,he thereafter recommended additional funds for the contingency fund and the
parks maintenance position.
Noting that Fire Chief Wagner created a method to add another three-person engine through the use
of overtime, Council Member Kight expressed his support to add funds to the Fire Department's
overtime budget.
Council Member McGeorge conveyed his concern about Ca1OSHA's regulation requiring all fire
agencies to have a minimum of five persons present before an interior entry into a burning building.
Noting there was discussion about closing Fire Station No.3,Council Member McGeorge stated that
fire personnel could be redeployed if Station No. 3 was closed. He expressed his support for
additional Fire Department overtime as an interim solution.
Council Member Pohlmeyer said he would like to see the dollars allocated between the contingency
fund,Fire Department overtime and renovation of the Plunge. Council Member McGeorge agreed.
Council Member Kight noted that $1.2 million is a tremendous amount of money for the Plunge
renovation and he suggested that a cost analysis be prepared before he could make an informed
decision. Mayor Anderson stated that the funds are a placeholder, and Council would approve any
contract for the Plunge improvements.
MOTION: Made by Council Member Kight, seconded by Council Member Cibula, to approve the
following: (1) funding for the Fire Department's overtime budget in the amount of$130,000 in
1999-00 and 2000-01 and (2) improvements to the Redding Plunge in the amount of$11,000 in
1999-00 and $36,000 in 2000-01. The Vote: Unanimous Ayes
Mayor Anderson said it was the consensus of Council to find additional funds within the budget to
increase the special events contingency fund by $5,000.
Council Member Cibula supported funding for the parks maintenance position.
Council Member Pohlmeyer stated that he would like additional information on the unmet needs list
including the actual cost to build the various facilities,the operating costs on a continuing basis and
what revenue sources are available. He suggested that Council consider prioritizing the Unmet
Needs list after more information is available.
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Mayor Anderson agreed and noted that due to the increase in street medians, another parks
maintenance position is probably necessary.
Council Member Kight said it is unrealistic to believe the list of unmet needs will be met with
residual monies, and he pointed out that if the City raised its revenue base through economic
development, Council would be able to fund more projects.
City Manager Warren asked Council if they would like staff to form an ad hoc committee to
determine if a tax override for fire protection, including three man engines and a new fire station,
should be put to the electorate. Mayor Anderson stated that staff could pursue that option, along
with all others. He noted that staff should determine if Fire Department personnel are interested in
that option and then report back to Council.
City Manager Warren asked if Council would like to include funds for a consultant to assist with
renewal of the franchise agreement with Falcon Cable, if the City has the ability to receive
reimbursement from Falcon Cable for expenses related to hiring the consultant. Mayor Anderson
stated that if the study is necessary and the City is reimbursed for costs relative to franchise renewal,
it is the consensus of Council to include those funds in the budget.
Council Member Cibula asked City Manager Warren if he had any suggestions in regard to
acquisition of open space and trails. Mr. Warren stated that open space and trails are usually
procured through grants; and in terms of City monies, there are none set aside at this time. Mr.
Warren noted that the policy regarding Reinvestment of Property Sales and Other Certain Revenues
states that "adoption will serve as a useful guide to the Council in dealing with the proceeds of
property sales and other non-recurring unbudgeted revenue in such a manner that the assets of the
City are rolled over from one form to another." Therefore,Mr. Warren confirmed that to the extent
Council would like to move in that direction, funds could be rolled over from the sale of one piece
of property to the purchase of another piece of property.
MOTION: Made by Council Member Kight, seconded by Council Member Pohlmeyer, that
Resolution No. 99-93 be adopted, a resolution of the City Council of the City of Redding adopting
and approving the 1999-2001 Biennial budget.
Voting was as follows:
AYES: Council Members - Cibula, Kight, McGeorge, Pohlmeyer and Anderson
NOES: Council Members -None
ABSTAIN: Council Members -None
ABSENT: Council Members - None
Resolution No. 99-93 is on file in the office of the City Clerk.
MOTION: Made by Council Member McGeorge, seconded by Council Member Cibula, that
Resolution No. 99-94 be adopted,a resolution of the City Council of the City of Redding amending
Council Policy 407 (reinvestment of Property Sales and Other Certain Revenues) and adopting
Council Policies 420 (Appropriation Transfers Between Years) and 421 (Reserve Balances in
Internal Service Funds)
Voting was as follows:
AYES: Council Members - Cibula, Kight, McGeorge, Pohlmeyer and Anderson
NOES: Council Members -None
ABSTAIN: Council Members -None
ABSENT: Council Members -None
Resolution No. 99-94 is on file in the office of the City Clerk.
Mayor Anderson complimented staff and noted that the briefness of the budget hearing is an
indication of Council's confidence in the City Manager and staff.
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ADJOURNMENT
There being no further business, at the hour of 5:22 p.m., Mayor Anderson declared the meeting
adjourned.
APPROVED:
C'
ayor •
ATTEST:
City Clerk
6/21/99