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HomeMy WebLinkAbout05-04-1995 City Council Study Session KlltU'lBS CITY COUNCIL STUDY SBSSIOH CITY OP LAXB BLSIHORB 130 SOUTH KAIH STRBBT LAXB BLSIHORB, CALIPORHIA THURSDAY, KAY 4, 1995 ................................................................. CALL !'O ORDBR Mayor Washburn called the City Council study Session to order at 8:36 a.m. PLBDGB OP ALLBGIARCB The Pledge of Allegiance was led by Councilwoman Brinley. ROLL CALL PRESENT: COUNCILMEMBERS: ALONGI, BENDER, BRINLEY, PAPE, WASHBURN ABSENT: COUNCILMEMBERS: NONE Also present were: City Manager Molendyk, city Attorney Harper, Administrative services Director Boone, City Planner LeSlie, Public Services Director Tecca, community Services Director Sapp, Manager of Special projects watenpaugh, Building and Safety Manager Russell and Deputy city Clerk Bryning. Lila Cardoza served The Intent to Recall papers to Councilman Pape, Mayor Pro Tem Bender and Councilwoman Brinley. Mayor Washburn cautioned Ms. Cardoza that if she interrupted the meeting again he would ask to have her removed. DISCUSSION ITBK 1. Summarv and Review of Revenue & Exoenditures for the Pro9osed 1995/96 Budaet. City Manager Molendyk asked that the City Attorney define a Study Session. Ci ty Attorney Harper explained that a Study Session is a regular meeting with the exception that there is no intent for any action to be taken. City Manager Molendyk asked if there was any difference between a Study Session and a Committee Meeting. city Attorney Harper stated that due to the recent newspaper articles he felt that the issue he should address is what constitutes a "Serial Meeting". He noted that while the statute used to use the term "Serial Meeting" and define that issue, now the code does not mention "Serial Meetings" and does not define it, but rather what is stated in section 54952.2 of the Government Code, is that any use of a personal ~_~___A': .............. ...),,~... ; Cf. Amnl nvad bv a ma;oritv of members of the PAGB TWO - CITY COUNCIL STUDY SBSSIOK - KAY 4, 1995 preclude the public body from making decisions without the benefit of the public having seen the input, the discussion and the vote. He further explained that clearly the way that City Manager Molendyk approached the provision of information and the asking and answering of questions during the budget process is the same as its done in every city in California and has never been found to be in violation of the Brown Act, even under the old "Serial Meeting" code. City Attorney Harper explained that the remedy for the violations of the Brown Act is a demand to correct, and this is not the type of si tuation which makes that applicable. Mayor Washburn stated that as he understands it, the article in the newspaper which states that city Manager Molendyk was in conflict and had violated the law is untrue. City Attorney Harper responded that it was untrue. He noted that city Managers cannot violate the Brown Act, City Council can, but not the City Manager. Councilwoman Brinley asked if there would be a correction of that article. Mayor Washburn stated that there would. city Manager Molendyk gave an overview of the Budget for 1995/96 as follows: * Since 1985 the City has enjoyed a strong, stable financial condition, with reserves of $3,000,000. * During this time the State in order to balance its budget, took City and Redevelopment Agency money in the amount of $4.6 to $5 million over a period of three years. As a result, the City has downsized its organization three times through budget eliminations and lay-offs, while also assuming additional responsibilities and staff workloads. During the 1993/94 Budget Year, the City Council negotiated and accepted the Lake from the State Parks and Recreation Department. The concept behind this acceptance was to provide flexibility and allow the City to clean up the Lake, thereby enhancing economic development potential. * Also, to add to the Recreation/Tourism theme, the city and the Redevelopment Agency built a Baseball Stadium/Amphitheater which is now called the Diamond. * * Due to the nature of the Diamond construction and upgrading of certain aspects of the facility, the final cost of construction is approximately $22 million, not the anticipated $15 million . Additional funds came from consolidation of City/RDA revenues. * There was no allowance made for additional revenues to cover estimated annual operation of the Stadium and Lake, which exceeds $1.5 million. * Rn~h n~ ~hARA A~~~r~s WATA d~nA in A nosi~ivA mAnner AS I I I ~ - PAGB THRBB - CITY COUBCIL 8TUDY 8B88IOH - KAY 4, 1995 , budget for 1995/96 as well as prepare a strategy for the next four to five years to provide a financially stable budget situation. He explained that staff has addressed the 1995/96 budget and reduced all possible costs as well as proposing to raise City fees to increase revenues. He noted that it is recommended that a utili ty tax of 6% be established to generate $1.2 million annually. City Manager Molendyk noted that as of this study session, the general fund is balanced, with a reserve of $800,000, but pointed out that the City's enterprise account for the Stadium is unresolved. However, negotiations are taking place between the City Attorney's Office and the Storm Organization to modify the existing contract and generate adequate revenues to support the operations and maintenance of the Diamond. He explained that City Attorney Harper has had preliminary meeting with the storm organization and will have recommendations within the next 30 to 45 days. Mayor Washburn questioned some of the events that the city has underwritten, such as Kids on Track of which a majority of the children are not residents of the City and asked if the School District is going to participate with the funding. Councilman Pape stated that he has talked to two members of the School Board and he was told that they will not be able to help with the funds for this program. Mayor Pro Tem Bender questioned the July 4th, concert and asked if what is presented is this year's or next year's. City Manager Molendyk stated that it is next year's. Councilwoman Brinley stated that the City can still have the celebration, but it must be self supporting. Mayor Washburn stated that it can be done through sponsorship. City Manager Molendyk explained this July 4th, concert and stated that although the City is still responsible for the bills, it was designed to be self supporting including the fireworks. Mayor Pro Tem Bender confirmed the overview of the budget and stressed the dilemma that this Council must deal with is for today and not yesterday. He noted that the reality is to cut expenses and raise revenues, since no one can go back to yesterday and change what has already happened. He stated that it is important to deal with the "real world" situation today. Mayor Washburn requested clarification that police services are not declining and will have a slight increase. ci ty Manager Molendyk explained that all the services levels have been cut with the exception of Fire and Police. He further explained that the City has added a full time crime analyst who is wi th the NAPA program and a full time sergeant to coordinate the enforcement on the Lake, plus an increase in the money provided for fire services. City Manager Molendyk explained that the City went over $200,000 this year and expect an increase of $135,000 next year for our liability insurance through the JPIA which is to cover the Stadium and ~...... T.~lr.... PAGE WOUR - CITY COUNCIL STUDY SESSION - KAY 4, 1995 three years ago. He stated that he feels that staff and the previous Councils have done a good job in keeping costs from being passed on to the citizens. Mayor Washburn stated that he feels that this has been partly a long term effect of proposition 13 and the declining property values. He noted that there has been an increase in sales tax in the city which he feels Wal-Mart and the Outlet Center have had a great deal to do with; which is part of the City's expansion. He explained that the City's economic problems are in part from the recession and the state taking the $4.5 to $5 million dollars over the last three years and without those factors ~ the city would have no problems. Mayor Washburn stated that he felt that Wal-Mart, the Stadium and the Lake improve the quality of life in the community. He noted that since Proposition 13, the per capita revenue is $1.00 per person and the amount of money that is spent on the city for that person is $1.50, and because of this issue the city council is going to have to go to the public to get assistance. Councilman Pape asked if the Code Enforcement is still at 1 1/2 staff and questioned the $160,000 cut. City Manager Molendyk stated that the $160,000 is the funds that would have been allocated to abate property; $25,000 has been allocated to board-ups only, but there is no money allocated for abatement. He asked about ,the police raids and their cost. City Manager Molendyk explained that it is estimated that the cost is approximately $15,000 per raid and the Police Department would like to do four raids next year with an estimated cost of $60,000. He stated that the City still participates in a County wide program and there are still opportunities to implement raids but not to the extent that we have been able to do this year. councilman Pape stated that he would like to see this program continue since he feels that it is a very effective in targeting gang activities. City Manager Molendyk stated that the budget is a fluid document and is an estimate of revenues and there is a possibility that -- there could be more in sales tax revenue and it could be addressed at the time we find out the exact amount of the revenues at Mid Year Budget review. Councilman Pape noted the Special Events portion of the budget and asked if the Celebrate the Children Day still costs the City money since there were several sponsors. Communi ty Services Director Sapp stated that it cost the City $2,500 in staff time. City Manager Molendyk stated that in the upcoming budget all part time staff has been eliminated. councilman Pape questioned the facilities repairs. City Manager Molendyk explained that until a few years ago the City has carried money in the budget for Capital Outlay to replace or repair items in the city. He noted that since the State has taken money from the City none of those items have been addressed unless there is a need to have it done. Councilman Pape questioned the amount set aside for Street Maintenance. Public Services Director Tecca stated that the amount was reduced from $200,000 to $150,000. city Manager Molendyk explained the items removed or not funded in the 1995/96 budget. ___1l___~_ ____ __ .!_______ .!_ '&"'-_ "':...... PAGI PIVB - CITY COUBCIL 8TUDY 8188IOB - KAY 4, 1995 Councilman Alongi stated that he does not appreciate the budget this year and that Council is asking the citizens of the City to subsidize the ball park and the Lake through a utility tax. He explained that because of overspending on the ball field it has forced the Council to make this review and impose a utility tax. City Attorney Harper reminded Council that all the spending for the ball field was done by bonds through the Public Financing Authority or through funds from the Redevelopment Agency. Councilman Alongi asked if the Redevelopment Agency, in the past paid money to the General Fund in the amount of $1.5 million dollars. Administrative services Director Boone stated that it did. Councilman Alongi then asked if the Redevelopment Agency has the $1.5 million dollars to pay the General Fund now. Administrati ve Services Director Boone stated that this year they do not. Councilman Alongi asked why. Administrative Services Director Boone stated that the money was spent. Councilman Alongi asked if the Redevelopment Agency had enough money from revenues to cover the debts of the RDA. Administrative Services Director Boone stated that given the last note issue, the RDA will be covered for the next two years, pending the growth of the assessed value. Councilman Alongi asked if we had enough now. Administrative Services Director Boone stated that we do at this time. councilman Alongi stated that if there is enough money to meet the debt, why is the City asking for the utility tax and increasing fees. He pointed out that in the past there were many things that the City provided to the residents such as free 4th of July shows and public safety issues and he feels that the reason that Council is here today is because we have taken on a tremendous burden, which is the ball field and the Lake which are not sufficiently supporting themselves. Council.an Alongi stated that it is not because of Proposition 13 or anYthing else, but rather the spending habits of the previous Council. He commented on the fact that Councilman Pape had said that there would be no utility tax and that the City had solid funding with no worries. He pointed out the reductions in the different departments and as an example how the City Manager was going to reduce his budget by $47,025. City Manager Molendyk pointed out that some of the expenses were shared by the City and Redevelopment Agency in his budget and this reduction eliminates any promotion for Economic Development. Councilman Alongi questioned the cuts in the Administrative services/Risk Management. Administrative Services Director Boone explained that deposit to the Joint Powers Insurance Authority for 94/95 was $403,000 and next year it is estimated to be $335,000. Councilman Alongi questioned the cuts in the Community Development/ Planning Department. special projects Manager watenpaugh stated that Community Development/Planning is a number of non-reoccurring contract works that the City will not be renewing. Councilman Alongi stated that the community will be paying for this one way or the other and if this were 1985 or 1990, we would not be sitting here talking about these items. He asked if the ball field was not built and the City did not take over the _____...'" ........_ ~~... "'.......... "''''';co .p.;.........,...;..., n....nhlAm t:ndaVA PAGB BIGHT - CITY COUNCIL STUDY SBSSIOK - KAY 4, 1"5 Mayor Washburn admonished Councilman Alongi for his language. Councilman Alongi stated that he did not say 'Bull Shit", but rather 'Bull crap". ~ Councilwoman Brinley stated that she took exception to Councilman Alongi's statements and the fact that Council is not blaming the taxpayer. She explained that when she I. discussed the budget with City Manager Molendyk she realized ~ that the City would have to cut back and possibly sell some of its assets and face the necessary decisions. Councilman Pape asked if there is any possibility that the City can sell some of the City owned property. City Manager Molendyk stated that there are two pieces of property that are under consideration to be sold or are in the process. ADJOURHMBB'l' The meeting was adjourned at 9:4 Respectfully submitted, L. Bryn / 2LL%J VICKI FABAD, CITY CLERK '" ....: