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HomeMy WebLinkAboutMin 06-25/26-97128 MINUTES OF THE UKIAH CITY COUNCIL Adjourned Regular Meeting - Budget Session Wednesday, June 25, 1997 The Ukiah City Council met in an Adjourned Regular Meeting on Wednesday, June 25, 1997, the notice for which had been legally noticed and posted, at 8:04 a.m., in the Council Chambers, Civic Center, 300 Seminary Avenue, Ukiah, California. The purpose of the meeting was to review and discuss the proposed fiscal year 1997-98 Budget. Roll was taken and the following Councilmembers were present: Councilmembers Chavez, Ashiku, Kelly, Mastin, and Mayor Malone. Staff present: Finance Director Elton, Assistant-City Manager Harris, City Manager Horsley, and City Clerk Henderson. Councilmember Mastin announced that he would be absent from the meeting at 2:30 p.m. on Thursday, June 26, 1997, as he had a conflicting appointment. City Manager Horsley provided the highlights of her written budget message. She noted a two- thirds reduction in the General Fund deficit from the previous year's budget. The revenue projections in the draft budget are conservative. There has been a great deal of cooperation on the part of staff to achieve this deficit reduction Finance Director Elton provided an overview of the fund summaries, transfers, and debt summary. He noted the Northern California Power Agency (NCPA) debt is not considered a debt of the City of Ukiah. He noted sales tax is responsible for 42 percent of City revenues, with property tax revenues only accounting for 7 percent of City funding. There has been a growth in sales tax revenues and in ambulance fees collected. City Manager Horsley noted the number of employees has been reduced by 10 over the last year. There were no layoffs of staff, but some retirements and some transfers within the City instead. This approach to personnel reduction was beneficial to morale. She complimented Assistant City Manager Harris and Finance Director Elton on their preparation of the budget and noted the many hours they devoted to the process. Finance Director Elton explained the concept of reimbursable credits between departments, noting the calculations for these transfers were based on time studies within each department. PUBLIC WORKS Public Works Director Kennedy provided an overview of the divisions within his department. He noted his budget was a lean one, with minimal staffing in Engineering and with decreased gas tax reimbursements, revenues are not available for new projects. The signalization project at Low Gap Road and State Street will have to be downsized as the bids were considerably above estimations. The highest priority of the Street Division is pothole patching. Included in the budget is the resurfacing of Perkins Street from Highway 101 into town. He addressed the closure and post- closure of the Landfill, noting once the Landfill equipment is no longer needed, it will be sold. These revenues have been factored into the post-closure costs. There was discussion between staff and the Council regarding participation agreements with the County of Mendocino and real estate developers, when major projects affecting City streets are proposed and built. Mr. Kennedy agreed the City Council and Board of Supervisors need to act in unison in this regard. There was also discussion of Mendocino Council of Governments funding for certain projects within the City. RECESSED: 10:11 a.m. RECONVENED: 10:28 a.m. City Manager Horsley noted the letter the Council received from Richard Howland suggesting the City ask for proposals regarding insurance rates. The procedure suggested, by Mr. Howland is exactly the procedure currently in use by the City. Mr. Kennedy reviewed the Landfill's proposed budget. He mentioned it was conservative, not based on any additional waste from Willits or Fort Bragg. Staff will adapt to meet those needs, if and when there is an additional waste stream from those cities. He stated the Perimeter Gas Extraction project is on schedule. Bids will be awarded at the July 2, 1997 Council Meeting. Post-closure procedures will include gas monitoring. The draft budget also includes consultant fees for monitoring the benzene levels at and near the Landfill. Budget Session - June 25-26, 1997 Page 1 129 Street sweeping is currently done every other week in residential neighborhoods and weekly in the commercial areas. Tree tdmming and debds control is done in-house on an as-needed basis. Major tree trimming is contracted out. PUBLIC UTILITIES Electric Public Utilities Director Barnes noted the Electdc Utility's budget is approximately the same as last year's. The meter replacement program is to be continued and routine maintenance upheld. There are no large projects in need of funding this year. The meter replacement and Calibration program will take another few years. Most of the large commercial customers have been serviced, the residential customers are now being processed. The project is being closely coordinated with the Finance Department as meters need to be tracked through that department for billing purposes. In response to questions regarding the City's membership assessment for NCPA, Mr. Barnes noted the membership assessment pays for the overhead costs of running the NCPA office in Roseville, business functions to which the City subscribes, and legislative efforts. The fee does not include power generation costs. City Manager Horsley noted the City does not make money on the sale of power, it just covers its costs. The franchise fee to the City is now at approximately 5.2 to 5.5 percent. Water and Sewer Mr. Barnes noted the Water Division budget represents no new projects. City crews are finishing Phase II of the Grove Street system improvements. This is the only major project currently under construction. The Sewer Division is holding the status quo on maintenance. Sludge needs to be extracted from the holding ponds; the ponds and levees held up well with all the winter rains. The Sewer Plant is near capacity, and an expansion study needs to be performed. The monitoring of the sewer lines with video equipment will locate major incidents of insurgence into the lines. RECESSED: 12:17 p.m. RECONVENED: 12:49 p.m. ..PUBLIC SAFETY Police Police Operations Captain Williams noted the Police Department budget remained constant this year due to tight financial restrictions. The budget, as proposed, includes only absolute necessities. The patrol car fleet is aging, so maintenance costs will be higher than usual. An additional K-9 Unit has been added to the force. The Abandoned Vehicle Abatement Program will continue, with personnel costs being reimbursed by the State. Digital cameras are to replace older cameras for quicker results and less cost of development. The storage area in the rear of the Civic Center is still greatly needed. The Reserve and Cadet Programs have been very successful as an introductory program for individuals interested in law enforcement careers. The Parking District is now under the auspices of the Police Department. The City continues, by contract, to provide dispatch services to Fort Bragg. If that contract is not renewed, the Police Department dispatch staff will be reorganized. Fire Fire Operations Chief Sandelin noted this was also a "hold the line" budget, just the essentials for operating an efficient department. The radio scanning equipment will be replaced, updated, and converted to be compatible with the administration's IBM computer equipment. A program for urban search and rescue training is being implemented. Flooding, earthquakes, and construction-related accidents require Fire Department personnel to have specialized knowledge and training. Discussion ensued regarding computer and software needs and purchases. The Volunteer Program budget is also a tight budget with the major expense being for medical and psychological examinations for volunteer personnel. Proper pre-placement examinations help minimize Workers Compensation claims later on. RECESSED: 1:54 p.m. RECONVENED: 2:08 p.m. Budget Session - June 25-26, 1997 Page ::2 130 CITY MANAGEMENT & ADMINISTRATION City Council City Manager Horsley explained two or three Councilmembers traditionally go to the League of California Cities Annual Conference. The Council should decide how much money to allot for the League Conference, Redwood Empire Division meetings, League committee meetings, and the Mayors/Councilmembers Conference in Monterey. City Clerk City Clerk Henderson explained this budget had been cut down to bare essentials. The Council needs to look at the salary of this position as cost of living increments have never been included. The Council Chamber recording device is scheduled for replacement. Elections The budgeted amount includes the cost of paying the County of Mendocino to conduct an election should the City require one under Proposition 218. City Treasurer An increase has been allowed for contractual services necessary for investment policy advice. City Attorney No request for increased fees have been made in the'City Attorney's contract. City Manager The travel and conference line item has been cut to reflect only minimal attendance at the League of California Cities annual conference. Personnel/Risk Management Personnel Officer Revheim noted there were no increases in this year's budget. She also noted the success of the Ergonomics Consultant Program. She noted hiring preference would be given to bilingual applicants. She also mentioned she had worked with various agencies to attract applicants from welfare reform and retraining programs. Giovanni Leoni, 1250 Boonville Road, offered to take Councilmembers or staff to the Olympic Club in San Francisco the following day to hear a program by the investment counselor who advises the City of San Francisco and the Plumbers' Union. City Manager Horsley replied she would be pleased to call Mr. Leoni to discuss the City's financial situation. Secretarial pool Executive Assistant Yoast mentioned three new computers are proposed for the Secretarial Pool to allow upgrading of these stations to Word Perfect 6.0. The discrepancy between regular and non- regular salades is due to a part-time position formerly paid from the 110 account, which is now being charged to the 111 account, and an increase in the minimum wage for several part-time positions. City Manager Horsley commented the Community Outreach effort includes new Internet hookup charges, directional signage for City facilities, and the promotional banner to hang over State Street. Community Organization Support funds were not included in this budget. Councilmember Kelly was interested in maintaining a City website and in distributing Community Organization Support funds, particularly to the Mendocino County Library. City Manager Horsley inquired if the Council wished to include Community Organization Support funds at this time. The Council discussed the matter. It was the general consensus to wait to see how revenues and expenses balanced throughout the year. Budget Session - June 25-26, 1997 Page 3 131 Mayor Malone queried the Council regarding its interest in advertising in the Redwood Empire Association (REA) publication. There was general discussion regarding marketing, Chamber of Commerce responsibilities therefor, effectiveness of the REA advertising venue, and website advertising. Miscellaneous General Government Expense Finance Director Elton noted the largest part of this budget category is due to purchasing and billing expenses. Other Funds These are the Bond Interest and Redemption funds for the debt service on the Civic Center. As to the City's insurance coverage, City Manager Horsley mentioned the Redwood Empire Municipal Insurance Fund (REMIF) recognized Ukiah for it safety record this year. The underground fuel storage tanks are in the process of being removed. RECESSED: 3:32 p.m. RECONVENED: 3:48 p.m. pLANNING DEPARTMENT Planning Director Sawyer indicated he would like to see the staffing level in this department remain at the present level now that the Building Division has been reorganized into one position at a $65,000 annual savings to the City. Mayor Malone noted the importance of attendance at training programs for staff and Planning Commissioners. The Council concurred the new Planning Commissioners should attend the League of California Cities Annual Conference. Due to the rapid progress of the City's budget review, the meeting of the Ukiah Redevelopment Agency scheduled for June 27, 1997, was rescheduled to June 26, 1997, at 2:30 p.m. At 3:57 p.m., Mayor Malone adjourned the Budget Session to June 26, 1997, at 8:00 a.m. Continuation - Budget Session Thursday, June 26, 1997 Mayor Malone convened the second day of the City Council Budget Session, the notice for which having was noticed and posted, at 8:05 a.m., in the City Council Chambers, Civic Center, 300 Seminary Avenue, Ukiah, California. The following Councilmembers were present: Chavez, Kelly, Mastin, and Mayor Malone. Councilmember Ashiku arrived a few minutes later. Staff present: Finance Director Elton, Assistant City Manger Harris, City Manager Horsely, and City Clerk Henderson. Assistant City Manager distributed a revised proposed budget resolution noting fund revisions in several accounts. COMMUNITY SERVICES Community Services Director DeKnoblough outlined the General Government Buildings section of the proposed budget, noting the repainting of the Civic Center is being accomplished in stages so all the expense is not incurred in one fiscal year. Parks Parks Supervisor Wise commented maintenance costs for the parks are lower than last year. He answered Council questions regarding the use of herbicides and pesticides in the parks. The ongoing vandalism to Vinewood Park was discussed. Options on how to deal with the problem will be brought before the Council at a later date. Mr. DeKnoblough noted the design of Observatory Park is included in this budget, with the planting to be scheduled for the fall of 1998, which is another budget cycle. There is a significant neighborhood group participating in the design of the park. Budget Session - June 25-26, 1997 Page 4 132 Recreation Community services Supervisor Weselsky noted an increase in salaries due to the national increase in the minimum wage. She outlined the City's Sports Program, noting these programs are self-funded, as is Summer Day Camp. The City has a high level of safety in the Aquatics Program, with revenues being significantly higher this year. However, the operation and maintenance of the swimming pool is heavily subsidized by the City. The high diving board is a liability issue; staff is looking into some possible changes in its use. Grace Hudson Museum Museum Director Wilson noted visitation to the Grace Hudson Museum and Sun House increased 35 percent over the past year, while the budget has been reduced 11 percent. The Sun House Guild raises approximately $40,000 per year directly for the benefit of the Museum complex. The Museum Endowment Fund is well in excess of $250,000, the interest from which will eventually be used for the operation and maintenance of the Museum and its collection. He further noted a donor solicitation program is being explored as are ongoing grant possibilities. Judy Pruden, 304 South Hortense, suggested the development of a specific list of projects towards which donors may direct their contributions. Mr. Wilson mentioned the receipt of a second National Science Foundation Grant, noting the grant underscores the importance of the Museum on a national level. These grants are very competitive and are tied to specific projects, rather than being for operation and maintenance. Ukiah Municipal Golf Course Community Services Director DeKnoblough noted play and revenues have been increased on the Course. The cart paths will be upgraded soon, drainage work continues, and overall the Course is in good repair. The Golf Course Committee has reviewed the proposed Golf Course budget and recommended its adoption. In response to questioning, Mr. DeKnoblough described the maintenance of the greens and the improvements being made in that regard. Financing procedures for the back 8 holes and the Clubhouse remodeling were discussed. Payments escalate over the years, however, there are no balloon payments at the end. As to the contract with the golf professional, he is paid by an exchange of a percentage of green fees and a percentage of the concessions, and he is held to performance standards. As to rumors that the Golf Course was for sale, City Manager Horsley noted it was not listed; however, if someone wants to make an offer, she would keep an open mind. She has received no offers. Ukiah Valley Conference Center Community Services Director DeKnoblough pointed out this is the first time the Conference Center budget has included funds for marketing. Conference Center Director Jenney distributed a list of Conference Center clients. He noted the budget includes the purchase of a dance floor. He is looking into ways to reduce the cost of linens used by the Center. He will also be marketing the Center locally and throughout Northern California. City Manager Horsley noted the Conference Center budget is projected to be balanced this year, with revenues covering expenses. Any excess revenues will be returned to the General Fund to start paying back startup loans. Judy Pruden noted the usage of the Center is primarily by Mendocino and Lake Counties residents and groups. Mr. Jenney stated 25 percent of the customers are from out of Mendocino County and approximately 40 percent of the revenues generated at the Center are regional, not local dollars. Judy Pruden felt the Center needs more local, positive public relations. Discussion ensued regarding the Center's Microenterprises. The rents are meant to be Iow, the leases short term. The two stores in the front are more permanent, and they pay close to market rate rents. Budget Session - June 25-26, 1997 Page 5 133 Finance Director Elton noted the Plaza debt is a Redevelopment Agency, not City debt. RECESSED: 9:66 a.m. RECONVENED: 10:05 a.m. City Manager Horsley stated the Ukiah Redevelopment Agency Closed Session could be held anytime. The Council would not need to wait until the conclusion of the 2:30 p.m. Redevelopment Agency meeting to conduct this emergency Closed session. FINANCE Finance Director Elton noted the Finance Department budget is relatively static, with no major changes. The mechanics of the changes in operations and programs instituted earlier this year are still being implemented. The biggest challenge for this department is preparing the computer systems for the year 2000. An assets inventory was prepared several years ago by an outside consultant. The Finance Department keeps an update of the inventory on paper, without doing a new, physical inventory each year. Computer Support Services Finance Director Elton noted Computer Support Services are handled by a staff of one. He would like to establish a Technology Planning Committee to review the overall needs of the City in this regard and to develop City-wide guidelines for purchasing computer and high-tech equipment. Business Improvement District The Business Improvement District fund is a separate fund which is used to finance the Main Street Program. The funds are generated by the businesses within the Downtown Parking and Improvement District as a self-imposed assessment. PurchasinQ Purchasing Supervisor Kennedy noted there are no dollar limits on purchases, however, it is the usual practice to obtain three quotes prior to purchasing goods or services. Local businesses are given the opportunity to provide quotes on prices. Bulk purchases are common, especially in the area of paper supplies. Office products are purchased by a yearly Request for Proposal. The best price on office supplies is evaluated quarterly. The Purchasing Department oversees all $5,000- $10,000 purchases. Any purchase over $10,000 requires Council approval. Billin~l and Collection Billing and Collection make up the largest function of the Finance Department. The utilities billing and collection are handled through this Division. It has been a goal of the Finance Department to cross train the staff, providing for smoother replacements on vacation and sick leave days. This is the Division in which bilingual skills would be the most helpful as this is the Division with the greatest customer contact. AIRPORT Airport Manager Bua noted the primary goal at the Airport was to complete the Compass Rose. Discussion took place regarding the types of travel and conferences necessary to this Department. He described the procedures for the sale of airplane and jet fuel. He did not see the possibility of the Flight Service Station returning to the Airport, nor did he think Ukiah would have commuter flights in the near future. He did think that the Federal Aviation Administration would maintain its lease at the Airport as it keeps weather reading equipment here. The Airport buildings and grounds have been refurbished and gradually improved. The General Fund does not receive a franchise fee from the Airport per Federal regulations. ; MIS MastinlAshiku to adopt Resolution 97-82, Adopting the 1997-98 Fiscal Year Budget, as amended. Councilmember Kelly suggested funding a staff position for the Children's Room at the Mendocino County Library. No decision was made. Budget Session - June 25-26, 1997 Page 6 134 City Manager Horsley again complimented the staff on its diligent work in preparing this budget, and reducing the deficit by $600,000 so that the budget will be back in line in two years, instead of four as originally anticipated. The motion carried by the following roll call vote: AYES: Councilmembers Chavez, Ashiku, Kelly, Mastin, and Mayor Malone. NOES: None. ABSTAIN: None. ABSENT: None. The meeting adjourned at 11:34 a.m. -")Colleen B. Henderson, City Clerk Budget Session - June 25-26, 1997 Page 7