HomeMy WebLinkAboutMin 02-01-05 (Speical)MINUTES OF THE UKIAH CITY COUNCIL
SPECIAL MEETING
TUESDAY, FEBRUARY 1,2005
The Ukiah City Council met at a Special Meeting on February 1, 2005, the notice for
which being legally noticed, at 4:00 p.m. at the Ukiah Valley Conference Center, 200
South School Street, Ukiah, CA. Roll was taken and the following Councilmembers
were present: Crane, McCowen, Rodin, Baldwin, and Mayor Ashiku. Staff present:
City Manager Horsley, Finance Director McCann, Public Utilities Director Ziemianek,
and City Clerk Ulvila.
City Manager Horsley discussed the agenda packet delivered to Council yesterday
containing options for advisory measures. She also reviewed the voting outcome of
previous measures submitted to the voters with regard to a sales tax increase for public
safety purposes.
2. AUDIENCE COMMENTS ON NON-AGENDA ITEMS
No one came forward to address the City Council.
3. BUDGET WORKSHOP
City Manager Horsley explained that the City is facing a significant deficit for the 2004-
2005 fiscal year. She provided an overview of the City's financial history and noted that
the City's budget went from being balanced during the last nine years to a projected
$1.2 million in the red. This was due to the downturn in the economy, state take-away,
and increases to the City's employer's portion of the Public Employees Retirement
System (PERS) due to poor investment performance that hit the City of Ukiah hard last
year. She went on to discuss the City employees' increasing workload since many
positions have been frozen. She discussed major General Fund cuts over the last two
years and projects that were not performed, liability issues, equipment being idle due to
reduced crews, and inability to replace failing equipment. The General Fund Summary
shows that 60% of the General Fund expenses are allocated to public safety, with
approximately 76% of the Police and Fire budgets being personnel costs. That leaves
only 40% of General Fund revenues ($3.6 million) to cover all administration, public
works, engineering, planning, building, parks, risk management, personnel and financial
services that the City provides to the public.
Finance Director McCann discussed the "Finance Director's Overview" of the City's.
financial situation as stated in the Staff Report to Council. He advised that City
revenues were cut in both the General Fund and in Redevelopment due to State take
aways. He continued with discussion of the property tax shift with the State,
Transportation-Traffic Congestion Relief, Fund 342 and Proposition 42 grants, booking
fees, and COPS funding.
Discussion followed between the City Council and Staff with regard to the following
issues and/or concerns:
· Staff recommendations contained in the Staff Report.
· Council needs to list priorities and what the consequences would be if certain
services were limited or cut from the budget. It was noted by City Manager
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Horsley that $24 million is needed for Public Works projects in the next few
years. She also discussed capital improvement items and departmental
equipment needs.
· There was discussion regarding creating a five-year budget model so that the
Council, staff and the community can anticipate future expenses.
· There was discussion concerning the ERAF model and the uncertainty of not
knowing what the City's revenue will be. The City currently has very little stability
in revenues.
· There was discussion of operating costs at Anton Stadium and the
repairs/maintenance needed for the grounds and structure. The agreement with
the School District allowed the City to use the High School gym for recreational
purposes in exchange for the use of Anton Stadium.
· A proposal regarding parking fees at Anton Stadium was suggested by Mayor
Ashiku.
· There was discussion regarding selling advertisement for the outfield at Anton
Stadium and the possibility of corporate sponsorship of the Stadium.
· There was discussion about the future expansion of the Grace Hudson Museum.
It was noted that the original plan was for the Sun House Guild to raise enough
money to pay all operating costs.
· A suggestion was made by Councilmember McCowen of selling some of the
property along Cleveland Lane if it is not needed for Museum expansion.
· There was a general discussion concerning the Ukiah Valley Conference Center
and the possibility of using some sponsorship from local motels to assist in the
cost of operation of the facility
· The municipal pool repairs were discussed and it was noted by staff that staff has
submitted applications for grant funding for this project. Local matching funds in
the amount of approximately $200,000.00 were also discussed. It was noted that
many non-profit groups are interested in volunteering their assistance with work
projects for the pool and Stadium.
Police Chief Williams discussed the situation at the Police Department during the past
10 years and in the future. Over the last several years the Police Department has been
operating on a minimal budget. All furniture and most equipment possessed by the
Department has been purchased with grant monies or through asset forfeiture. While it
may be possible to reduce some of the operating budget, any substantial savings will
only be realized through reductions in personnel. Any such reduction will have a severe
negative impact on the ability of the Department to provide quality law enforcement for
the community and will result in a less safe environment. As the area continues to
grow, demands on law enforcement will increase. Staff reductions will inevitably lead to
diminished services. He explained the COPS funding program and noted that the
Department cannot use it to supplant existing services.
Fire Chief Latipow explained that the Fire Department is attempting to maintain a high
level of service that the community expects. The Department continues to experience
an increase in population and in services to the community, with a reduction in
personnel. He explained that if the department drops below the OSHA mandated "2 in 2
out" requirements for interior fire attack the Fire Department will have to delay
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February 1,2005
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aggressive firefighting. The delay could result in additional property loss and the
potential for a fire to spread to other structures. The elimination of the ambulance would
save little, if any money, as the revenue pays for the additional firefighters hired for the
ambulance service.
Fire Chief Latipow discussed inventory of equipment and large apparatus and the cost
of replacement for the Fire Department. He went on to discuss the ambulance program
and noted that he will be coming before Council in the near future to discuss an
increase in ambulance fees. He noted that as the population increases, it causes an
increase in citizen assist calls and there is a higher density of public safety services in
multi family housing areas.
Public Works Director/City Engineer Steele discussed capital improvement projects
and personnel for the Public Works Department. She advised that STIP funding is on
hold and there is a need for additional funding for needed repairs. She went on to
discuss the possible increased cost in road maintenance should projects be delayed.
Upon questioning by Council regarding specific street conditions within the City, she
explained the road conditions and needed repairs. She noted that the Gibson Creek
and Waugh Lane bridges require high maintenance.
Planning Director Stump discussed the Planning and Building Divisions of the
Community Development Department and noted that the Building Department pays for
itself with the fees it collects, while the Planning Department's fees recovery rate is
approximately 10%. He suggested the City Council direct staff to look at the fee
schedules for planning services and research fees of other cities.
Discussion continued with regard to the General Fund Summary related to the Public
Works Department and public safety increases. City Manager Horsley discussed
Public Works funding for projects as well as Community Service issues concerning the
City maintaining its parks and landscaping at the Conference Center and Alex Thomas
Plaza.
City Attorney Rapport discussed the State's Proposition 218 requirement for local
governments that want to increase revenues. He discussed the difference between
fees, taxes, special taxes, and general taxes. The fees have to be set based on the cost
to provide the service and money is restricted to what the fund was set up to provide.
He discussed the restrictions of transferring Enterprise Fund money to the General
Fund, if the voters approve it. He went on to discuss problems associated with
increasing the City's franchise fee for its utilities. He noted that electric utilities are
specifically excluded from Prop 218.
PUBLIC COMMENT
The following individuals spoke to the issue: Ross Liberty, Gordon Elton, and John
Mayfield.
Police Chief Williams explained that it takes approximately five years to train new
officers once they are hired by the City. He further explained that the initial investment
of the City to hire and train an officer is about a $50,000. There is State mandated
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training of officers that the' City must continue to meet. He noted that with the lack of
experience of an officer, a liability is associated with it.
Discussion followed regarding the following concerns: · Concern with training individuals, only to have them leave for higher pay and the
importance of not having a constant transition in public safety officers.
· Directing Staff to prepare a cost analysis regarding the ambulance service fees.
· Discussion of the Fire Departments insurance rating and how a reduced staff
may affect the insurance rating for the community.
· There was discussion of a Charter City v. General Law City and if the City should
look into the matter of becoming a Charter City.
· Each City Department will be coming before the City Council in the next few
months with regard to revenue enhancements.
It was the consensus of the City Council to have staff provide information to the City
Council with regard to revenue enhancements for City Departments.
Recessed: 6:47 p.m.
Reconvened: 6:58 p.m.
DISCUSSION OF POSSIBLE SALES TAX BALLOT MEASURE - MAYOR ASHIKU
City Manager Horsley explained that Mayor Ashiku has asked for the Council's
discussion regarding a possible sales tax ballot measure. She discussed the recent
analysis of local revenue measures in various cities that were voted on in the November
2004 election. She distributed a list of "Advisory Vote Only" alternatives, as prepared by
City Attorney Rapport for Council's consideration.
Discussion followed concerning
possible sales tax ballot measure:
the following concerns/issues associated with a
Review of the City Attorney's advisory alternatives.
The need to support public safety.
Discussion of whether to have a sales tax proposal and an advisory measure on
the ballot.
Whether the measure should be a general tax or a special tax.
Whether the sales tax increase should be a half cent increase.
Concern was expressed that the City Council needs to make a commitment to
the citizens to focus on core issues affecting the City, utilize resources needed
for public safety, and to present information to the voters so they will understand
the City's concern for the community.
Councilmember McCowen voiced his support for a half cent sales tax increase and an
advisory measure that would specify certain levels of service, noting that without an
increase the City could see a significant decline in service to the community.
It was the consensus of the City Council to move forward with a half cent sales tax
increase ballot measure.
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Ross Liberty, a member of the Mendocino County Employers Council, suggested
offering the voters a half cent sales tax increase with a five-year sunset clause. If the
City Council approved such a proposal, the Employers Council would be willing to share
the cost of a Special Election.
Discussion continued concerning the agenda item with regard to: · Ensuring that the infrastructure of the City is adequately taken care of,
· Providing adequate funding for public safety departments now and in the future.
· Staff expressed the difficulty of the City planning anything for a five-year
timeframe,
· Considerable discussion related to setting a sunset time frame, Suggestions
were made of five to twenty years. It was noted by Staff that a recent sales tax
measure that was passed in Santa Rosa set 20 years as its sunset clause
because of financing concerns,
· The negative, aspects in recruiting quality personnel if the sunset clause were set
at five years,
· Gaining the support of the Police and Fire Departments for a sunset clause.
· Discussion concerning the amount of money the State plans to take from the
City,
· Vehicle License Fees (VLF) bond expense would cost 10% or less of VLF annual
fundingand VLF impacts on future General Fund budgets,
· It was noted that the sales tax revenue from the measure would remain in the
community and the State would not be able to take it from the City
Fire Chief Latipow discussed the possibility of placing a sunset clause on the measure
and how a sunset clause has affected other communities. If the sunset clause is longer,
for example 30 years, it would be easier for City Staff to project adequate planning. He
compiled a spreadsheet with a statistical analysis for the Fire Department and it is
available to the City Council for review.
Benj Thomas and David Smith Ferri spoke to the issue.
Councilmember Crane advised that he is a member of the Employers Council and
does not agree with a five-year sunset clause, however, he thought a sunset clause is
needed. Based on the amount of work the City needs to complete in Public Works, the
Police and Fire Departments, etc., he thought a sunset clause 15 years or more would
be necessary to accomplish the work needed.
City Attorney Rapport explained each of the Advisory Vote alternatives he provided to
Council. He also provided Council with legal advice related to the alternatives
presented. He discussed placing a general tax with an advisory measure on the ballot.
He noted that the City Council is not legally obligated to place an advisory measure on
the ballot.
A consensus of the City Council was agreeable to a half cent sales tax increase.
Council also discussed a general tax verses a special tax, and the possibility of a sunset
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clause. At the next Council meeting, Council will discuss whether to approve an
advisory measure and determine the number of years for a sunset clause. Staff will also
provide revenue and expenditure projections for Council's review.
It was the consensus of the City Council to include an advisory measure with the
sales tax ballot measure for the June 2005 election.
There was a brief discussion with regard to Councilmembers contacting City
departments with regard to any questions they may have concerning projects or budget
item questions.
5, ADJOURNMENT
There being no further business, the meeting was adjourned at 8:07 p.m. to the joint
meeting of the City Council and Ukiah Valley Sanitation District meeting scheduled for
February 2, 2005 at 4:00 p.m.
Marie Ulvila, City Clerk
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February 1,2005
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