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HomeMy WebLinkAboutMin 06-23/24-98253 MINUTES OF THE UKIAH CITY COUNCIL Special Meeting - Budget Session Tuesday, June 23, 1998 The Ukiah City Council met at a Special Meeting on June 23, 1998, the notice for which had been legally noticed and posted, at 10:02 a.m. in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. The purpose of the meeting was to review and discuss the proposed Fiscal Year 1998-99 Budget. Roll was taken and the following Councilmembers were present: Chavez, Ashiku, Kelly, Mastin, and Mayor Malone. Staff present: Director of Finance Elton, Risk Manager/Budget Officer Harris, City Manager Horsley, Director of Public Works Kennedy, Director of Community Services DeKnoblough, Community Services Supervisor Weselsky, Ukiah Valley Conference Center Manager Jenny, Acting Museum Director Smith-Fen-i, Director of Public Utilities Barnes, Water/Sewer Operations Superintendent Borecky, Police Chief Williams, Fire Chief Sandelin, Customer Service Supervisor Archibald, Director of Planning Sawyer, Airport Manager Bua, and City Clerk Ulvila. City Manager Horsley provided the highlights of her written budget message. She noted that every City Department was exceedingly conservative. This year staff met to initiate an annual long-range planning and strategy program to prepare for the needs and requirements of the City and community in the next 5 to 10 years. Finance Director Eiton provided an overview of the fund summaries, transfers, and debt summary. Councilmember Kelly noted an error for the total employees on the Authorized Personnel section, which should be 153~A, not 151½. Finance Director Eiton apologized for the error, noting it will be corrected. He advised that the pages were manually totaled, where the other spreadsheets had formulas built in to do the calculations. Mayor Malone referred to the Observatory house rental and suggested credit be given for caretaking the property and that the rental amount reflect in-lieu cost. City Manager Horsley recommended it be referenced in the Parks budget. She discussed possible impacts of the proposed Vehicle License Fees refund possibly going into effect this next year. The City of Ukiah has submitted letters to state agencies and has been informed the League of California Cities will adamantly pursue the issue as well. This potential refund can mean a loss of up to $600,000 to the City of Ukiah. The City has already cut non-essential programs and services, reduced staff by ten positions, and deferred equipment replacement and this cut would hit us in an already weakened condition. She gave recognition to Gordon Elton and Mike Harris for all their hard work in preparing the budget. PUBLIC WORKS Public Works Director Kennedy provided an overview of the Divisions within his Department. He noted there would be no changes in personnel, and various allowances for expenditure accounts are the same as previous years with the exception of machinery and equipment. The Engineering Department is proposing to replace an old ammonia blueprint machine with a larger copier that will be able to make larger copies of prints without emitting toxic fumes as in the case with the current ammonia blueprint machine. The used machinery would go through the City's Surplus Program. Other City Departments, such as Planning could also utilize the new copier. ~ There was discussion concerning the reconstruction project on Orchard Avenue, rehabilitating Perkins Street, construction of the Orchard Avenue Bridge at Orr Creek, and improvements to Waugh Lane and collector streets. Director Kennedy advised that a survey was conducted among residents of the Marlene Street neighborhood and staff will be evaluating their responses regarding the speed humps and the effectiveness of the partial closure of Marlene Street. Councilmember Mastin made reference to Page ES-4 of the City Manager's Budget Message under Budget Session - June 23-24, 1998 Page 1 254 Street Maintenance, "...correcting traffic signal loops at State and Wabash...", correcting the statement to read "... State and Washington...' Public Works Director Kennedy discussed the Landfill's proposed budget; noting contractual services may be lower this year. He proposed changes to the Shop Attendant position, maintenance of vehicles and equipment, with a large portion of the Garage Mechanic' s duties centering on Landfill equipment. Pre-closure cost for the Landfill is estimated at $1.1 million. He summarized benzene monitoring in the Landfill and its impact to groundwater at the east side of the site. He urged the need to prepare for Landfill closure costs. The City will continue with the upkeep and litter abatement of Vichy Springs Road. There was some discussion conceming street sweeping, weed abatement, and leaf removal, and their impact on the landfill. Mr. Kennedy discussed the proposed purchase of a 4-wheel drive pickup while noting the current vehicle would be used in the vehicle pool for employee's transportation to seminars. RECESSED: 11:25 a.m. RECONVENED: 11:32 a.m. COMMUNITY SERVICES Community Services Director DeKnoblough discussed the proposed phased project to repair the Civic Center roof, which is included in Fund 800. He discussed the proposal for a "combined" employee, Golf/Park Superintendent. Projects for the upcoming year include the completion of Observatory Park and improvements to playground equipment in all parks. He noted the main expense with Observatory Park is irrigating the landscaping. There was discussion concerning recreational activities for youth at the parks and the development of Observatory Park. City Manager Horsley noted Riverside Park development would be a cross over with the Planning Department and the Coastal Conservancy. This matter will be reviewed once the budget is finalized. There was also discussion concerning the use of herbicides. There was discussion concerning the use of the Montgomery Wards building site for recreational purposes and the long-range planning for a joint use agreement with the Ukiah Unified School District if they choose the site for a new school. Mr. DeKnoblough noted the City's need for extra facilities for such things as gyms and a recreation center, with the obstacle being money to fund the project. Discussion pursued concerning sharing resources and facilities with the School District, developing a joint use agreement, and the possible use of Redevelopment Funds to assist in this endeavor. Mr. DeKnoblough noted Redevelopment Funds could be used to eliminate blight. Community Services Supervisor Weselsky noted the City is limited in space and there is a need to work with the School District for its programs. The Community Services Department is involved in discussion with the School District at this time. RECESS: 12:27 p.m. RECONVENED: 12:37 p.m. RECREATION, ADMINISTRATION Community Services Supervisor Weselsky advised there is no increase to the budget. Aquatics Community Services Director DeKnoblough advised they are conducting a survey of other communities' aquatic programs and are looking at ways to best utilize the pool facility for all age groups in the community. Community Services Supervisor Weselsky discussed the use of the pool by the Ukiah Unified School District. Maintenance of the pool is an important cost factor, noting their survey should be of assistance in finding alternative solutions for both maintenance and use of the facility. Grace Hudson/Sun House Museum/Museum Grant Funds Acting Director Sherri Smith-Ferri presented an overview of the Museum funding and the high Budget Session - June 23-24, 1998 Page 2 255 level of attendance. Formation of a committee is currently underway to assist in the five-year plan, with emphasis on funding sources. She noted the Guild is having a fund raiser in commemoration of Pat Denny. The endowment will need to take over the expenses in the future, which is part of the five-year plan. She discussed their proposal to purchase an oversized color monitor, which will assist the current Director in utilizing their graphic design techniques for publications, thereby reducing costs. She discussed budget cuts in her salary and explained that part of her time will be funded by a grant from the National Science Foundation. Municipal Golf Course Community Services Director DeKnoblough advised there will be no fee increase, however, they are looking at how the fees are structured. He discussed the possible impacts if the County builds a golf course on the coast. He advised the use of herbicides at the Golf Course is limited and he is working with the Public Utilities and Engineering Departments regarding the herbicide program. UKIAH VALLEY CONFERENCE CENTER Conference Center Manager Jenny discussed the revenues of the Conference Center, noting growth potential for wedding receptions and other events. City Manager Horsley explained that the Conference Center has reached equity and payments will begin towards payment of its debts, noting that originally they thought it would to take 10 years to become stable. Once revenues are higher than expenses, the remainder will go towards interest on the loan. PUBLIC UTILITIES Public Utilities Director Barnes gave an overview of the Electric Utility's budget, which increased by $300,000. These increases are reflected in salary and benefits, tree trimming, replacement generator, drafter and plotter, and repair of damaged traffic signals. He discussed major allocations for contractual services, equipment and repair, and the construction of a storage and shop facility at the plant. City Manager Horsley noted the City should be able to pay off.the bonds earlier than anticipated. Public Utilities Director Barnes discussed the increase in capital expenditures at the water plant for proposed structures. Additionally, a 5% increase in salary for the Water Treatment Plant Supervisor and other personnel is recommended as the result of a study of similar positions in other cities. RECESSED: 1:30 p.m. RECONVENED: 1:33 p.m. PUBLIC SAFETY _ Polic~ Police Chief Williams discussed the objectives of the Police Department, noting a reorganization of the Department. Of particular importance is to evaluate and prioritize current areas of responsibilities of patrol supervisors to allow supervisors a majority of their time in the field supervising patrol officers. He discussed completing the implementation of a P.C. based network and records management program. Additional objectives discussed were the expansion of the Citizens Police Academy and exploring the opportunities for new computer programs with crime analysis and mapping capabilities as well as electronic storage for record management. Fire Chief Sandelin outlined the significant differences during the past year and noted the Fire Department is operating efficiently. There was a brief discussion of the plans to complete the fire training tower. The Fire Department will continue to support fire prevention activities as well as the volunteer program already in place. He discussed initiating a West Hills Vegetation Management Plan and identified the western hills as a hazardous fire zone. Residents in this area have been very cooperative in curbing fire dangers. There was discussion between staff and the Council regarding future use of Station 652 (North Fire Budget Session - June 23-24, 1998 Page 3 256 Station) in addition to major maintenance projects on the structure. Staff noted that the City is in negotiations with another agency that will help maintain the building. Councilmember Mastin voiced his opposition to the location of the training tower, noting the Civic Center property site puts the City in a difficult position from a planning standpoint. Parkine District City Manager Horsley reported that the City would be conducting a survey of the Downtown Parking District. Customer Service Supervisor Archibald reported the City is still accepting parking permit applications from County administration employees, with approximately 50% of them responding. The City will extend the response time one more month. There was discussion concerning a parking area for persons serving on a jury. The City continues to monitor the parking meter collections. It was noted the Post Office would be relinquishing up to 25 spaces from Lot A due to the relocation of their distribution center. There was discussion regarding upgrading how tickets are recorded and processed. FINANCE Director of Finance EIton gave an overview of the Finance Department's budget, noting that it includes the sof~ware to the year 2000. They are researching fixed asset software as well as the replacement of the AS400, which will be assessed by the Finance Department. There was discussion between staff and the Council regarding Business License Fees, and a regular inventory of assets. He noted the auditors have not informed him of a plan for completing the inventory, and at this time each Department is supposed to identify items that have been disposed. Recessed: 2:57 p.m. Reconvened: 3:10 p.m. PLANNING Director of Planning Sawyer advised they are requesting $10,000 this year to hire an historical preservation expert to assist in the assessment of properties, and staff will prepare an ordinance. An existing inventory was completed in the 1980's, which the consultant could use. The consultant would probably be selected through the RFP process. It expects many debates from the community once the inventory is complete and property owners are notified. City Manager Horsley advised that Reno, Nevada is going through this type of situation with an old motel, weighing the cost to preserve the structure versus its historical value. There was discussion between staff and the Council regarding the Demolition Permit Committee and the prospect of the Planning Commission being involved in the historical preservation process. The need to incorporate both short and long range planning in the budget with regard to meeting the needs of the General Plan was discussed. It was noted that long-range planning sessions have been ongoing and will be very beneficial in the coming year. Director of Planning Sawyer expressed the need to reserve money in the budget for a substitute Building Inspector to replace the current Building Inspector during vacation time. He noted that combining the positions of Building InSpector with the Code Enforcement Officer has proven to be very helpful and the Department is running more efficiently. He discussed building permit fees and the lack of large projects. He discussed his request for a computer for the Building Inspector, which will have CD ROM capability so they will be able to install all building codes on the computer. This will make plan checking more efficient and be more assessable to customers' needs. ELECTED AND APPOINTED OFFICIALS City. Council There was discussion between staff and the Council concerning the salaries of City Councilmembers, with City Manager Horsley advising she will research the matter. A discussion of travel and Budget Session - June 23-24, 1998 Page 4 257 conference expenses followed. Counciimember Mastin presented an idea of providing a fund for each Councilmember to use for such items as attending conferences which are not budgeted, or for supporting an individual group in the community, noting that the Mendocino County Board of Supervisors are allocated a fund for a variety of things. City Manager Horsley noted that the Board of Supervisors allocates funds for special projects in their District. Discussion continued concerning the establishment of an expense fund and how funds are currently allocated to non-profit agencies in the community. It was determined that policies and guidelines would need to be considered prior to establishing such a fund. Consensus of the Council was to establish a fund totaling $2,000 for the City Council as a whole, with the City Council to vote on each expenditure request. The voice vote was 4 to 1, with Councilmember Ashiku opposing the proposal. Councilmembers discussed the two offices at City Hall, which are not used very often by Councilmembers and the Mayor. Consensus of the Council was to use the current office occupied by the Mayor for use by all Councilmembers and that it be furnished with a couch for a lounge type atmosphere and also have a table or desk for writing needs. Staff could better utilize the vacated office space and furnishings. It was noted that other meeting rooms are available at City Hall for larger meetings. City Manager Horsley discussed reorganizing the offices of Risk Manager Harris and City Clerk Ulvila, as they are most affected by the noise of the general public. She will research costs involved for the transition and report her findings to Council at a later date. City. Clerk/Elections City Manager Horsley requested a new computer for the City Clerk' s office since the one in use has been malfunctioning for some time. She noted that the objectives listed in the Budget were developed prior to City Clerk Ulvila's appointment. City Treasurer City Manager Horsley advised the budget is the same as last year. City Attorney City Manager Horsley advised the budget is the same as last year. MUNICIPAL AIRPORT AND SPECIAL AVIATION Airport Manager Bua advised the Airport anticipates an increase in revenue. He explained that CDF is constructing a new facility at the Airport. He discussed purchasing a fuel truck, whether new or used, and how it would enhance the fuel capabilities at the Airport. He presented an update on the proposed commuter service being established at the Airport. They are currently in negotiations with the Federal Aviation Administration for a sublease with the City to establish their business. Discussion followed concerning the benefits of a commuter service to the Ukiah area. He noted the business will begin with airfreight and passenger service in 1999. With regard to Fund 305, Mr. Bua explained that newer recycling containers would be included this year. There was discussion concerning usable space near the Airport, such as north of the Federal Express building and a narrow strip along the east side of the Airport. OTHER FUNDS Civic Center Bond Interest and Redemption Risk Manager/Budget Officer Harris advised that the bond will maturing in the year 2005. Special Revenue Risk Manager/Budget Officer Harris briefly discussed Special Revenues. Budget Session - June 23-24, 1998 Page 5 258 Federal Emergency Shelter Grant Risk Manager/Budget Officer Harris advised that the City would receive a small amount of the administration fee. The total grant over a two-year period will be approximately $250,000. He noted the grant is specifically for the homeless. Community Development Block Grant Staff and Council made a brief review of the budget. Community_ Development Commission Risk Manager/Budget Officer Harris advised that the funds would be generated from the Community Development Block Grant. Equipment Replacement Risk Manager/Budget Officer Harris reviewed the fund balances per department. CITY MANAGER City Manager Horsley informed Council that she has requested a pager for herself this year. She advised that she is waiting for analysis and may approach Council after the fiscal year with regard to an amendment to the Assistant City Manager position. Personnel/Risk Management There was discussion between staff and Council concerning the use of recycling bins that have multi- receptacles rather than a single unit. Councilmember Chavez requested recycling programs be printed in Spanish as well as English. City Manager Horsley noted that the AB 939 Task Force also felt recycling information should be printed in Spanish as well as English. She reported that Melody Harris is doing a great job in Personnel Department. Secretarial Pool City Manager Horsley reported the budget request for a color printer would allow staff to develop brochures in house. There was a brief discussion of the purchase of $12,000 copier and it was noted the copier is used considerably. Community. Outreach/Public Information City Manager Horsley discussed advertising, promotion, and the development of a Web page for the City, with a budget request of $5,000. She discussed an alternative City logo as well as possibly establishing a City flag. She discussed the promotional uses for a City flag. The development of a Web page would be a joint effort between the City and the Chamber of Commerce. Considerable discussion followed concerning the Web page layout and the information it would contain. It was noted that the City has approval rights on the City/Chamber combined Web page. There was discussion between staff and the Council concerning providing assistance for maintenance work at the County Library as a non-monetary exchange although it was uncertain the impact it would have on City staff. It was noted that the City does not provide maintenance to the library at the present time. It was recommended that staff check the status of the long-term lease of the library. Miscellaneous General Government City Manager Horsley briefly discussed dues and subscriptions. Franchise Fee City Manager Horsley distributed information to the Council concerning the possibility of a Franchise Fee reduction. Discussion followed concerning the public's view on the matter, noting it is not a tax, but a fee. It was noted that City Attorney Rapport has indicated the City is within their rights. In comparison to P.G.&E., the City's electric rates are higher. City Manager Horsley reportedly discussed the matter with Director of Public Utilities Barnes and was advised that even if the Franchise Fee was reduced by 3°A, we couldn't lower the utility rates. Mayor Malone noted that this is his sixth City budget review and everything included in the budget this year is very beneficial. Budget Session - June 23-24, 1998 Page 6 259 At 5:28 p.m., Mayor Malone adjourned the meeting to the Joint Ukiah Valley Sanitation District meeting on June 24, 1998, at 3:00 p.m. Continuation - Budget Session Wednesday, June 24, 1998 Mayor Malone convened the second day of the City Council Budget Session, the notice for which having was noticed and posted, at 5:15 p.m., in the Civic Center Council Chambers, 300 Seminary Avenue, Ukiah, California. The following Councilmembers were present: Chavez, Ashiku, Kelly, Mastin, and Mayor Malone. Staff present: Director of Finance Elton, Risk Manager/Budget Officer Harris, City Manager Horsley, and City Clerk Ulvila. City Manager Horsley distributed copies of changes made to the budget from yesterday's budget session, most notably depreciation values. There was discussion between staff'and the Council concerning the Franchise Fee for electric utilities and the UVSD's portion of the land rental fee. It was suggested by City Manager Horsley that the City reduce the General Fund by $77,760, as a safeguard. Fund 541 and 612 were also reviewed. Consensus of the City Council was to keep the revenue at the higher amount, $77,760, on Fund 612 and transfer money to Fund 541. Reference to those changes will be made in adoption of the budget. Director of Finance Eiton explained that the Airport borrowed money from the Electric Utility to build a hangar, at an interest rate of 10%. A lower interest rate could be obtained from another source. He proposed changing the interest rate on this loan to 6% and the budget for the Airport will remain the same. Payments would remain the same and the balance would be reduced faster. He reported that the Coastal Conservancy Grant has potential for funding a riverside park. When the funds are received by the City, they will then be entered into the budget. M/S Mastin/Kelly to adopt Resolution 98-45, Adopting the 1998-99 Fiscal Year Budget, as amended, 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 5:45 p.m. Marie Ulvila, City Clerk Budget Session - June 23-24, 1998 Page 7