Loading...
HomeMy WebLinkAboutMinutes 061096 - Special Mtng Approved as Submitted Meeting Date: 7/9/96 ATASCADERO CITY COUNCIL SPECIAL MEETING JUNE 10, 1996 MINUTES PURPOSE OF THE MEETING: The City Council met to conduct a workshop with the members of the City's Economic Recovery Task Force relative to their findings and recommendations as submitted to the City Council at their meeting of May 28, 1996. Said findings and recommendations are attached as Exhibit A. The Mayor called the meeting to order at 7:05 p.m. and led the Pledge of Allegiance. ROLL CALL: Present: Councilmembers Bewley, Carden, Johnson, Luna and Mayor Highland Absent: None Also Present: Rudy Hernandez, City Treasurer and Lee Price, City Clerk Staff Present: Andy Takata, City Manager; Steve DeCamp, City Planner; Art Montandon, City Attorney; Brady Cherry, Director of Community Services; Brad Whitty, Finance Director; Bud McHale, Police Chief and Lt. Bill Watton Task Force Members Present: Kathy Pierson, Bob Johnson, Jon Lovgren, Lindsay Hampton, Leo Korba (for Micki Korba), Dwight Huffman, Joan O'Keefe, James Patterson and Shirley Moore Task Force Members Absent: Joanne Peters, Joni Roberts, Mike Hicks, Ralph Dowell, Douglas Byles, Jay DeCou and Joe Grisanti PUBLIC COMMENTS: Eric Greening, 7365 Valle, urged the City Council to make no further commitments to expansion of the City's urban services line or future sewer service (unless Special 6/10/96 Page 1 forced to by the Regional Water Quality Control Board), given the fact that Wastewater funds have been loaned to the General Fund. Bill Zimmerman, 6225 Lomitas, commented that he appreciates this joint meeting and hopes that the exchange will include the reasons behind some of the recommendations made by the Task Force. MEETING HIGHLIGHTS: Using the four-page recommendation plan submitted to the City Council by the Task Force (see Exhibit A), the discussion followed loosely the order outlined in the plan. The following is a summary of the discussion: • Councilmember Carden requested clarification of "No new projects Kathy Pierson explained that the committee realizes that emergencies come up and that it is difficult to anticipate costs, but emphasized that this recommendation would apply to capital expenditures like the recent purchase of Stadium Park. • The recommendation to reduce department head salaries was discussed. The City Attorney reported that compensation for department heads is a negotiated matter and that their salaries are considered contractual agreements confirmed by Council by resolution on an annual basis. • The concept of privatizing the Charles Paddock Zoo was discussed. Shirley Moore reported that the sub-committee considered only a proposal by which the San Luis Obispo County Zoological Society would take over the Zoo. It was determined that it would not be feasible for the Zoo Society to do it, she said, but explained that no other option was reviewed. • Councilmember Johnson asked if there has been any discussion with the County about a subsidy from the County funds, recognizing the fact that the Zoo draws visitors county-wide. Shirley Moore reported that David Blakely has made a discretionary donation, but was pessimistic about County participation in funding the Zoo. Brady Cherry mentioned that some informal discussions with County staff have taken place but noted that it is not likely that the County will make any contribution in light of proposed cuts to other regional programs like the library system. He added that staff has requested that a formal inquiry be made regardless. • Discussion ensued regarding departmental budgets. There was consensus on the part of the committee that certain departments (Zoo, Police & Fire specifically) that consistently go over budget. It was felt that some departments were not being appropriated enough money to cover their costs in an effort to balance the overall budget. It was concluded that departmental budgets should be more realistic. • Regarding the recommendation to create no new or additional positions, Kathy Pierson clarified that the committee did not intend by this recommendation to propose that vacancies presently funded or positions created by possible restructuring should not be filled. Special 6/10/96 Page 2 • Kathy Pierson reported that there is no correlation between columns 3 and 4 on page four of the plan. Departments were rated by the job they do given the funding available, she said. The committee recommends that any cuts be in those departments that rate "more than adequate" under the column entitled, "Adequacy of Funding from General Fund". • The committee concludes that Pavilion fees are not high enough to recover the costs. Councilmember Carden reported that the Finance Committee proposes that the Pavilion be set up as an enterprise fund instead of a special revenue fund, which is subsidized by the General Fund. • James Patterson reported that the committee agreed that continued deferred maintenance of streets, parks and public buildings will result in higher costs in the long run and that maintenance should, therefore, be given a higher funding priority. • There was mutual agreement amongst the committee members that until the City gains control over its monetary problems, the public as a whole will not accept any major changes (i.e.: new assessment districts, taxes, etc.). • Staff reported that voluntary employee furloughs in lieu of raises and furloughs to voluntarily reduce hours have been taken by employees for the past three to four years. • Regarding business licenses, staff reported that they are already looking into the possibility of requiring business licenses for all sub-contractors doing work in the City. • The Fire Chief reported on new trends and issues relative to emergency dispatching. Small dispatchers may want to go to a regional dispatch approach similar to what the California Department of Forestry and the County Sheriffs Department use. Lt. Watton cautioned Council to consider hidden costs (like hardware support and others) associated with regional dispatch services to ensure that a change would be cost-effective. • Lt. Watton responded to questions regarding the Police Department jail. He explained that, with the exception of felony arrests, the facility's holding cells are used on a regular basis for misdemeanor violators. • The City Attorney pointed out that changing bi-monthly payroll to monthly payroll was not permitted by fair labor laws. • The committee chairperson emphasized that the recommendation to increase any fees that are not recovering all costs was not to be taken literally. She noted that the committee recognized that some programs cannot recover all costs but emphasized that the statement's intent was to be a common sense guide to the Council as it relates to fees. Special 6/10/96 Page 3 • Shirley Moore suggested that home occupation business licenses be made easier to get and proposed that the public be educated about the process. • Art Montandon reported that law set forth in the Public Utilities Code allows municipalities to charge franchise fees for certain utilities that transport their product through the community via pipelines. He noted that the difficulty lies with the fact that the City must prove that the utility is using municipal property. He reported that utility companies often acquire legal easements and/or title, and that the City would have to conduct an in-depth records search before it could be determined whether or not a franchise fee could be collected. The fee, he added, is set by State law and represents a certain percentage of the product that is put through the pipeline. Public Comments: Rush Kolemaine, 4850 Potrero Road, commented that the function of the Task Force is one that could serve the City on an on-going, annual basis. He suggested that a long-range fiscal plan be clearly defined and that the Council consider re- development. He also stated that line item amounts within departmental budgets had not been given enough attention by members of the Task Force. Rudy Hernandez, City Treasurer, asserted that borrowing from the Wastewater Fund was unjustifiable and should not have happened. He remarked that the financial crisis must be addressed through revenue enhancements and budget reductions. Sandi Ford, representative for the Service Employees International Union (SEIU), thanked the members of the Task Force for their work. She commented that it was time for city councils countywide to take some responsibility for the fiscal climates of their communities and urged the Council to take action. ---end of public testimony--- Individual members of the City Council expressed gratitude to the members of the Task Force. Kathy Pierson indicated that the committee hopes to remain involved in the process and would like to have the opportunity to do some follow-up. AT 9:53 P.M. THE MEETING WAS ADJOURNED. MINUTES PREPARED BY: LEE PRICE, C.M.0 CITY CLERK Attachment: Exhibit A (ERTF Recommendations) Special 6/10/96 Page 4 ECONOMIC RECOVERY TASK FORCE (ERTF) RECOMMENDATION TO CITY COUNCIL I. SHORT TERM RECOMMENDATIONS: These are actions with an immediate effect. These recommendations are to remain in effect until the budget incorporates the pay-back to the Wastewater Fund, budgets realistic amounts for the Zoo and incorporates a minimum General Fund Reserve as recommended by the auditors. A. SHORT TERM STEPS TO KEEP FROM ADDING NEW DEBT TO THE GENERAL FUND 1. No new projects. 2. Create no new or additional positions. 3. No wage or salary increases. 4. Each department will not exceed its annual budget. B. SHORT TERM COS T CUTTING TO COVER EXISTING DEBT, ANNUAL EXPENSES & MINIMUM GENERAL FUND RESERVE 1. City Manager to be held accountable for control of the budget. 2. Reduction of department head salaries. 3. Reduction of certain employee benefits such as health pay- back for employees without dependents. 4. Department budget reductions based on ERTF rating of individual departments. (See ratings on page 4.) 5. Consider voluntary employee furloughs. C. SHORT TERM REVENUE ENHANCEMENTS 1. Enforce a requirement that all those doing business in the City of Atascadero, including all contractors, subcontractors and suppliers, have an Atascadero business License. 1 UUUU0�) II. LONG TERM RECOMMENDATIONS: r These are actions that may take some time before the effects will be realized. A. LONG TERM COST REDUCTIONS 1. Consider contracting for dispatch services. 2. Adopt enroachment and sidewalk ordinances. 3. Consider monthly payroll or consider contracting out payroll. 4. Centralize purchasing. 5. Enact PG&E recommendations to reduce utility costs at the Pavilion and other City buildings. B. LONG TERM REVENUE ENHANCEMENTS 1. Increase any fees that aren't recovering all costs to the City. This includes the cost of deferred maintenance and administration. 2. Enforce code, permit and license requirements. 3. Charge a hazardous materials franchise fee on pipelines. 4. Before the ERTF could consider a tax increase or city-wide assessment it is deemed necessary that all the short term recommendations be implemented . 000006; C. LONG TERM INCREASE IN SERVICE LEVELS These are to be enacted after the short term recommendations have been implemented. 1. Overlay roads according to the priority,established by the City Engineer. 2. Increase road maintenance staff to previous level. 3. Repair buildings owned by the City . 4. Replace worn out equipment. 5. Hire a Community Development Director and a Public Works Director. D. OTHER 1. A record of the City's financial status should be current and available at all times and should include cash flow projections. The report should also reflect the annual amount budgeted for each department, expected revenues for each department and balances remaining as the fiscal year progresses. 2. Utilize computer for self-service in the Planning Department. 3. Streamline permitting process without reducing standards. 4. Implement a Fixed Asset program and update it annually. 5. Improve collections. Turn delinquent accounts over to collection agency. 6. Implement an incentive program for employee's suggestions that save money. 7. Implement a reward system for departments that come in under budget at the end of the fiscal year. 8. Allow departments to carry over unexpended funds to the next fiscal year. NOTE: The preceding recommendations are not listed in order of priority. J 00000'7 ECONOMIC RECOVERY TASK FORCE (ERTF) RATINGS OF DEPARTMENTS BY SERVICE LEVEL AND ADEQUACY OF FUNDING DEPARTMENT SERVICE LEVELS ADEQUACY OF FUNDING FROM GENERAL FUND Police Adequate More than adequate Fire More than adequate Adequate Finance Less than adequate Less than adequate Community Services Administration Less than adequate Less than adequate Recreation More than adequate More than adequate Parks/Buildings Less than adequate Less than adequate Zoo Less than adequate Less than adequate Street Division Less than adequate Less than adequate Pavilion Less than adequate More than adequate Community Development Less than adequate Less than adequate Administration More than adequate Adequate Wastewater Adequate Not applicable (Enterprise fund) Refer to individual sub-committee reports for each department to gain a better understanding of the ratings. 4 000009