Loading...
HomeMy WebLinkAboutStaff Report 1.B 02/23/2004AM February 23, 2004 Ctv of'Petaluma California I8 5 $" MEETING OF PETALUMA CITY COUNCIL AND PETALUMA COMMUNITY DEVELOPMENT .COMMISSION Draft :City Council Minutes Monday, January , 26, 2004 - 3:00 P.M. Regular Meeting 3:00 P.M.'- CITY COUNCIL 1 CALL TO ORDER 2 3 A. Roll Call 4 5 Present: Mayor Glass, Harris, Healy Vice .Mayor Moynihan, O'Brien, Torliatt 6 Absent: Canevaro 7 8 B. Pledge of Allegiance 9 10 11 PUBLIC COMMENT 12 Teresa Haire, Petaluma High School Music Boosters, addressed the City Council • 13 regarding an upcoming Fundraiser and Dinner.Dance for Petaluma High School Band 14 Members to go to Washington, D.C. 15 16 Blaise Turek, Petaluma High School Music 'Boosters, addressed the City Council and 17 commented on the upcoming Dance to be, held February 20, 2004 6 p.m. to 1 1 p.m. at 18 the Lucchesi Center. Ticket price is $45 per person, with tickets being available at 19 Copperfield's Books, Petaluma. 20 21 Nancee .Tavares, Petaluma Animal Services, addressed the City Council regarding the 22 upcoming Critter Camp and Feline Foto Contest, 23 24 COUNCIL COMMENTS 25 26 Council Member Torliatt asked that the Arts flee issue be placed on the February 23, 2004 27. Council Agenda; and briefly commented on the Water Advisory Committee Meeting 28 where discussion on extending the MOU for operation of the water system are 29 continuing. 30 31 Council Member O'Brien commented on the emails and phone calls he is getting 32 regarding streetlights being out on Western Avenue. He also 'asked that this evening's 33 meeting be adjourned in memory of Yolanda Hromeck and Eleanor Corda. 34 35 Vice Mayor Moynihan noted that the Appropriations Limit hearing is being continued to 36 February 2; 2004 and indicated he wants an adequate amount of time to review the 37 status of the CIP budget, as well as the PCDC budget. He, indicated it would be prudent • 38 to have that review in advance of appropriation changes. 39 1 3 4 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Vol. XX, Page 2 January 26, 2004 Council Member Healy commented there is a street lights number to call listed in the telephone directory and indicated his support for the Arts Fee is being discussed at•the February 23, 2004 Council Meeting. .Mayor Glass .indicated'he is open to have the Arts. Fee, on February 23, 2004 as well. CITY MANAGER COMMENTS City Manager Bierman 'indicated he may have to set some Budget Special Sessions in February and confirmed the Council will be discussing the Arts Fee on February 23, 2004. He then announced the _Employee of the Year, Bill Spaulding, a 25 -year employee, of the Utility and Water Resources Department. Mike Ban, Interim Director of Water Resources r and Conservation, made special remarks about Mr. Spaulding's value to the city as an employee. APPROVAL OF MINUTES Vice Mayor Moynihan briefly left the Council Chambers at this time. APPROVAL OF MINUTES A. City Council /Petaluma Public Financing Corporation Minutes of January 5, 2004. It was noted that the City Clerk had prepared an amended set of Minutes that' added additional City Council discussion regarding the General Plan Item. MOTION to adopt the amended Minutes as presented by the City Clerk: M /S O'Brien and. Torliatt. CARRIED ON A 5 -0 -2 VOTE AS FOLLOWS: AYES: Harris, Healy, O'Brien, Torliatt and Glass NOES: None ABSENT: Canevaro and Moynihan 2. APPROVAL OF PROPOSED AGENDA A. Approval of Proposed Agenda for Council's Regular Meeting 'of February 2, 2004. MOTION to adopt the Proposed Agenda: M/S Torliatt and O'Brien. - CARRIED ON A 5 -0 -2 VOTE AS FOLLOWS: AYES: Harris, Healy, O'Brien_, Torliatt and Glass NOES: None ABSENT: Canevaro and Moynihan • 0 4 January 26, 2004 Vol. XX, Page 3 1 3. PUBLIC HEARING . • 2 3 A. Resolution Amending Resolution No. 2002 -129 N.C.S. and Resolution No. 4 2003 -128 N.C.S. Setting the Appropriations Limit for Fiscal Years 2003 and 5 2004. (Thomas) 6 7 MOTION to call and continue this public hearing to February 2, 2004: 8 9 M/S O'Brien and Torliatt. CARRIED BY A 5 -0 -2 VOTE AS FOLLOWS: 10 1 1 AYES: Harris, Healy, O'Brien, Torliatt and Glass 12 NOES: None 13 ABSENT: Canevaro and Moynihan 14 15 Vice Mayor Moynihan returned to the Council Chambers at this time. 16 17 4. CONSENT CALENDAR 18 19 A. Resolution 2004 -009 N.C.S. Approving a Lot Line Adjustment for 20 Washington Creek Subdivision. (Bates /Moore) 21 22 B. Resolution 2004 -010 N.C:S: Authorizing the Police Department to Accept a 23 Traffic Safety Grant from the California Office of Traffic Safety for Sobriety 24 Checkpoint Mini -Grant in the Arnount of == $28,200.00. (Simms) 25 26 MOTION to adopt'the Consent Calendar as recommended: • 27 28 M /STorliatt and;O'Brien. CARRIED UNANIMOUSLY. 29 30 5. UNFINISHED BUSINESS, - PCDC 31 32 A. PCDC Resolution -M4-00,11 Authorizing the Execution of the First 33 Amendment to an 'Owner Participation Agreement Between LOK Petaluma 34 Marina Hotel Company, LLC and the Petaluma Community Development 35 Commission and the First :Implementation Agreement to Subordination 36 and Standstill Agreement between WG Investments and the Petaluma 37 Community Development Commission ('Marangella) 38 39 Paul Marangella, Economic. Development and Redevelopment Director, 40 gave the staff report and recommended Council approve the first 41 amendment to the Owner . Participation Agreement and the First 42 Implementation Agreement-to Subordination and Standstill. Agreement. 43 44 Vice Mayor Moynihan clarified this would allow Luna Investments to be 45 the managing member. He commented that he feels the City is still at risk 46 by lending additional funds and would prefer to not approve the 47 agreement. He stated he feels this'is throwing good money after bad. 48 49 City Manager Berm y g an enco,urag'ed the Council to approve the 50 51 agreement in order to cut the risks for probable legal ramifications. . 1 3 4 5 6 7 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 Vol. XX, Page 4 January 26, 2004 Mayor Glass commented on how the City is trying to cut .down on exposure to litigation and legal costs. He interjected that he does not know if this is a good:. deal, but knows it is the only deal. He indicated there is no way for the City to recuperate investments to ensure the success of the hotel and commented the City is stuck between a rock and a hard place Council Member O'Brien agreed with Vice Mayor Moynihan'in principal, . but indicated the Council is really stuck with regard to this matter. He noted it is a terrible 'deal that should not have been entered into,in the first place, but '1t would cost less to approve the agreement than it would be to incur litigation costs. Council Member Torliatt indicated the reality is the City has to make the payments, because if the payments aren't made, WG Investments will sue the City and they will win. She went on to note the changes before the Council are not substantial changes. She indicated she was not happy with the deal in the first place, but the reality is the council doesn't have any leverage at this time. Council Member Healy indicated he shares the frustration expressed by other council members and indicated the Council, when this was first approved, was told the City's position was a good one financially. He than asked for the City's Attorney, Gerald Ramiza, McDonough Holland.& Allen PC, to explain the City's best course of action. Gerald Ramiza, McDonough Holland & Allen PC, indicated. the best course of action for the City Council at this point is to approve the proposed amendments. Councif, Member Harris indicated he agrees with the comments made by other council members. Council. Member .Torliatt clarified that when this matter came before the Council the firsCtime, Mr. Keller, who'was serving on the Council at that time, had raised numerous concerns regarding the agreement including the City's financial position. MOTION to adopt the PCDC..Resolution approving the amendments: M/S O'Brien and Torliatt. CARRIED ON A 5 -1 -1 VOTE AS FOLLOWS: AYES': Harris, Healy, O'Brien, Torliatt and Glass NOES: Moynihan ABSENT: Canevaro .6. NEW BUSINESS- CITY"COUNCIL A. Discussion, with Direction to LAFCO Regarding City' of Petaluma's Preference Regarding Alternative. Apportionment for LAFCO Funding for FY 04/05. (Bierman) • ♦J January 26, 2004. Vol. XX, Page 5 After a brief discussion by the C_ ity Council, the following MOTION was 2 ma "d "e: 3 4 MOTION to direct the City Manager to send a letter to LAFCO 5 recommending they retain the 1/3-1/3-1/3 formula currently used by 6 LAFCO. 7 8 M/S O'Brien.and Healy. CARRIED UNANIMOUSLY. 9 10 Council. Member .TOrlicgtt c "ommented, as the Alternate on LAFCO, she 1 1 would like also to send a message stating the desire to move toward a 12 user base fee for LAFCO services, as well'as a fee setting policy. 13 14 Council Member`O'Brien stated his support for such a recommendation. 15 16 ADJOURN TO: CITY COUNCIL CLOSED SESSION 17 18 PUBLIC COMMENT 19 20 There was none. 21 22 ADJOURN TO CLOSEDSESSION 23 24 The City Council adjourned to Closed Session at 3:43 p.m. to discuss the following 25 matters: 26 27 • 0 PUBLIC EMPLOYEE PERFORMANCE EVALUATION: Pursuant to Govt. Code 28 §54957: City Attorney 29 ■ CONFERENCE WITH LABOR N_EGOTIATOR:: Pursuant to Govt. Code §54957:6: 30 Agency Designated Negotiator Bierman. Unrepresented Employee: 31 City Attorney' 32 33 34 MONDAY, JANUARY 26.,2004-m- EVENING SESSION 35 7:00, P:M. 36 37 CALL TO. ORDER 38 39 A: Roll Call 40 41 Present: Mayor Glass, Harris, Healy, Vice Mayor Moynihan, O'Brien, Torliatt 42 Absent: Canevaro 43 44 B. Pledge of Allegiance 45 C. M_ ome`nt.of Silence 46 47 PUBLIC COMMENT 48 49 Richard Sharke, Petaluma, addressed the City Council regarding the temporary 50 replacement for Council Member Keith Canevaro and indicated it has nothing to do 51 with ''party' affiliation.' He further stated "the recent "party" comments made by Council 52 Member Healy in the Press Democrat were uncalled for. Vol. XX, Page 6 January 26, 2004 1 2 Molly Creasy, Petaluma, addressed the City Council regarding the .desire to see the. Swim • 3 Center opened early in March and indicated it could be, a generator of income for the 4 City. 5 6 COUNCIL COMMENTS 7 8 Council Member Harris reported he had spoken at Valley Orchard recently. He also 9 commented on the Center issue and asked when Council would` have an 10 opportunity to have , the, matter placed on an agenda for discussion. - 11 12 CbunclI .Mem . b2r Healy indicated he is .supportive of placing the Swim Center matter on 13 pan upcoming agenda as the 'proponen'ts for opening it early desire a response on the 14 issue. He suggested having it,placed on the next Council Meeting agenda. 15 16 In'response to comments, made by Mr. Sharke, he.pointed out the Press Democrat does 17 not always print what was actually said. He !.stressed anyone is free to express their view 18 regarding this temporary council member replacement issue and pointed out it will be 19 an open and public process. 20 21, Vice Mayor Moynihan suggested having the Recreation,,:Music and Park's Commission's 22 Aquatics Subcom review the request to open the Swim Center early before the . 23 Council acts on the matter. 24 25 In response to comments - made. by Mr. Sharke, Vice Mayor Moynihan agreed partisan 26 comments have no place at this level. 27 28 Vice Mayor Moynihan then remarked on the salary and benefits information that Wds 29 given to the Council last week. He indicated he understands the need to be 30 competitive with regard .to the workforce ..with surrounding cities, but he feels the 31 surrounding cities pay their, employees too much, too. He comme:nded'doing business 32 differently and using.'the approach of evaluating positions and their salaries He would 33 recommend a wage freeze until such time'at study like that is done. He also suggested 34 splitting the medical benefits •50/50 with employees and limiting retirement .packages to 35 10% of ,one's overall salary. He would .like to* =see this matter .placed on the next Council 36 agenda for discussion. 37 38 Council Member Torliatt noted at the first' meeting in January she had requested Council 39 to participate- and set up a joint- meeting between the. Council, the Fairgrounds Board 40 and the School District to discuss the Kenilworth .property. She urged staff to move 41 forward with , setting up that meeting in the next month or two. 42 43 With regard to the, ; Swim Center. issue, she referenced a plan put together by the 44 Aquatics Committee in 2001;. She asked staff to take a look at the plan and ' try to' 45 implement it, indicating it could generate: a lot of revenue for the City.. 46 47 In conclusion, Council Member Torliatt. acknowledged Council. M. ember Canevaro was 48 not present this eve_ ning and wished him and his family well,, as well as a speedy return to 49 the Council. 50 51 Mayor Glass commented .on the, City: Council vacancy issue and indicated the best way 52 to get through this process is for an open process to be followed. He noted. the filing . January 26, 2004 Vol. XX, Page 7 0 51 1 deadline for ,persons interested in serving in this temporary position to file their letter of 2 interest by:`the. close of business, Friday, February 13, 2004. He noted the Council is slated 3 to discuss and make a decision regarding the appointment, at the. February 23, 2004 City 4 Council Meeting. 5 6 Mayor Glass continued by commenting on:the budget and pension deficit liabilities. He 7 also noted other cities and businesses that are experiencing budget shortfalls. 8 9 CITY MANAGER COMMENTS 10 1 1 City Manager Bierman noted he will put the Aquatics issue on the February 2nd Agenda 12 for City Council discussion and noted he -had not seen the Aquatics Committee 2001 13 Plan. 14 15 7. PUBLIC HEARING 16 17 A. Public Hearing and Introduction of Ordinance 2172 N.C.S. Ado pting a 18 Precise Plan tine for Caulfield Lane. Between Lakeville Street and Hopper 19 Street. (Moore) 20 21 Craig Spaulding, City Engineer, gave the staff report and recommended 22 the Council approve the proposed alignment and introduce an 23 ordinance adopting the Caulfield. Lane Precise Plan Line. He also 24 recommended authorizing the City manager to sign and forward the PUC 25 application for a Caulfield, Lane at =grade crossing. • 26 27 Vice Mayor Moynihan questioned if the existing General Plan has any 28 design lines for this project.. He commented if this doesn't conform to the 29 existing General Plan, wouldn't it require a General Plan Amendment to 30 move forward? 31 32 Mike Moore; Director of Community b.evelopment, responded that staff is 33 implementing the extension of Caulfield as is called for in both the 34 General Plan and the Specific Plan. 35 36 Mayor Glass opened the public hearing. Hearing no requests to speak, 37 the public hearing was closed. 38 39 MOTION to adopt the resolution, SECONDED by Council Member Healy. 40 41 Council Member Torliatt stated she }is basically 'in ' concurrence with 42 moving this forward, but asked staff; to continue to pursue looking into a 43 couple of issues. First, as part of 'the PUC application which talks about 44 the frontage road on Lakeville from D Street to where the crossing is on 45 Hopper Street, she wants to make sure the City is preserving ownership of 46 that area; if in fact the City has .ownership of that area. She also wants to 47 make sure the access to that frontage road is; also provided for because it 48 is a key piece of property that would provide for the opportunity to work 49 with the adjacent property owners ;in the future to provide either 50 pedestrian access and /or an area when that corner parcel develops. 0 51 Vol. XX, Page 8 January 26, 2004 Secondly, as this will be a huge intersection and the `railroad crossing ,at Caulfield• is going to be large` as well, she indicated she wants to make • sure the City',pursues looking at the aesthetics and the functibnality of ''the; railroad crossing in that area. She indicated she feels we- need to be cognizant of the pedestrian scale of this intersection. in particular; she mentioned the new single homeless 'facility will be located right there and will be the primary access for people that would not be in 'a vehicle, 'to access from Lakeville to Hopper Street. She asked that staff focus on the design and how people are going .to get across those railroad tracks in the most easy w' ay., as well as aesthetically and functionally. Also, as part of the proposal talks about closing off Hopper. Street„ sh ;e indicated she would like to see the City preserve the Hopper Street entrance and exit the way it is now with the crossing arms existing there, as opposed to, retrofitting it. She would like to retain the open feel that'it currently has as opposed to the proposal for automatic gate -type crossing 'protection and pre -cast or cast -in=place 'reinforced concrete panels along the railroad. In conclusion, she commented on her concern with the alignment of how this :goes into the existing city property and how that parcel will. be developed, how the alignment will affect it by bisecting or going around the parcel. Council, Member Healy noted if Council Member Torliatt is referring to the Jack's Produce property on the corner, his understanding was that was penciled in to be part of'the team track facility. • Mr Moore indicated the team track-, which is the track located on the Depot site would be relocated across D Street onto that corner piece. He referenced the thoroughfare map provided to the Council he indicated" you,can see that there will be a street connection that will go behind that property and ultimately connect with Copeland Street. He clarified for Council Member Healy that the Bay Area Ridge Trail segment would cross the tracks at Caulfield. Council .Member TorliatF referenced the area next to Jack's Produce. She noted it might not' always be what we' are proposing it to be with this rail spur line. She stressed the need to preserve the right -of -way and make sure we have ownership or try to retain control of that area so we can work with the entire property to make it a more usable piece. Vice Mayor Moynihan expressed concern regarding this recommendation to move forward with Caulfield while 'the City is still in the process of updating the° General Plan. He sees this as pre - empting the process by adopting a precise design line. Mayor Glass indicated he had occasion to go to the SMART -Rail Authority almost a year ago - it was a difficult to get that group to agree to a process back then.. Ultimately, the result of 'that the refurbishment of the three buildings over at the train depot. He stressed we need to ra January 26, 2004 Vol. XX, Page 9 1 relocate the storage tracks that are making a perfectly good parcel • 2 inaccessible. He indicated he feels that will trigger hundreds of millions of 3 dollars of economic activity inside the Central Petaluma Specific Plan 4 area. He indicated he would be voting to move this forward this evening. 5 6 Mayor Glass noted there was a. MOTION to adopt for consideration: 7 8 M/S O'Brien and Healy. CARRIED'ON A 5 -1 -1 VOTE AS FOLLOWS: 9 10 AYES` Harris, Healy, O'Brien, Torliatt and Glass 11 NOES: Moynihan 12 ABSENT:- Canevaro 13 14 8. UNFINISHED BUSINESS 15 16 A. Continued Discussion of the 2003 -2004 Budget Due to State Budget 17 Impacts: (Bierman) 18 19 City ffiqr agqr 'Bierman commented: staff will be coming back to the 20 Council to review the Capital Improvement Programs and the PCDC 21 Budget, including the ERAF funds and how affects bonding capacity and 22 enterprise funds. He indicated, for.now, there is more at risk in the General 23 Fund. He noted ,at the end of discussions last week, if was noted the City 24 had a'probiem of $1.9M and recommended the use of two reserves to 25 bring that shortfall down to $1 (That included $400,000 for the • 26 27 retirement payouts that were not .needed in fiscal year '04 and $287,000 of .fiscal year '03 surplus funds). He noted budget resolutions would be 28 brought back for Council consideration to move forward with those 29 recommendations if Council concurs. 30 31 He continued -by indicating additional mid -term adjustment resolutions will 32 include -the street maintenance and street reconstruction, fund. Staff 33 would, also transfer $300,000 that is in Gas Tax Funds that is earmarked for 34, the :D Street `Bridge 2and that would be put into the street and 35 maintenance fund. That would bring the,-,street maintenance fund up to 36 about $2.7M. He also noted funds would need to be placed into the 37 museum roof project which has been completed. He indicated there are 38 several changes in the Water and Sewer Budgets to adjust for both 39 operating and- capital.issues. 40 41 He stated all of those issues would come back to the Council inform of 42 resolutions making changes to th'e budget, 'which will. result in a $1.2M 43 budget shortfall' and some additional monies for street maintenance. He 44 continued by stating the issue of the shortfall of $1.2M still remains and 45 both sides of the equation (revenue and expenditure sides) must be 46 looked at to solve this issue. With reference to the revenue side, the City 4.7 Manager noted on February 23, 2004, staff would bring to the Council 48 adjustments of the administrative fees: He noted the managing'of assets 49 would still need to beaooked at, indicating there are- rental facilities that 50 are in need of reviewing;' for a possible increase in rent. Referencing the 51 Aquatics Program, the City Manager noted most cities have pools that • 52 are self- supporting or corporations donate funds for people to swim. In Vol. XX, Page 10 January 26, 2004 conclusion, he noted the need to build the tax base, which is more of a long -term goal, but if should be built with retail that is other than auto • sales. On the expense side, he commented there needs to be organizational and operational reviews. He indicated staff has looked at additional use of reserves and will need to set some service level priorities. He added he would need to review the possibility of selected cuts and labor negotiations. In, addition, he noted the workforce has been reading the ,newspapers and there is a lot of concern and turmoil shared by employees. He indicated his intent to meet with employees within' the next week to ten days in a general session to discuss the issues, and be given an .opportunity to ask questions and give suggestions on how they might help solve the problem. He. noted he will be getting information,:to the Council on the inew PERS rates, but,indicated they will have an impact on next years budget in the range of'about $1.6M, with'$1.2M of that being from the General Fund. Summarizing, he .noted he will be bringing to the Council at the next meeting -a discussion regarding aquatics, and resolutions, fpr the $400,000 $287,000 and $300,000 for street' maintenance. Vice Mayor Moynihan commented the., situation the Council 'is looking at is not a good one.. He indicated Council couldn't afford to wait until next year's budget to address the issues. He stressed the need to , tackle and .make adjustments this year at mid -year and not wait until next year's • budget.. He added.the issue is how to provide services to the community with the resources we currently have. He indicated his.desire to see an increase in ,appropriations and use of gas tax monies that we currently have. He continued by commenting on existing current vacant positions, which result in an excess of funds in the budget, noting he would like to see those .funds, backed out at mid -year. He added if a position were not being back filled, he: would dike to, see it eliminated. Vice Mayor Moynihan then requested:a list of positions that can be eliminated •through attrition and stressed the need to look at the cost of benefits being paid to employees, including those being provided to the Council. He concluded by stating he would like to see a PERS cap at 10% of one's base salary. .City Manager Bierman reiterated that the financidl problems the city is experiencing came about because of State .and sales tax issues: He stressed the need to look, of fees, as well as impacts from the change in VLF funds, 'He commented =on the employee positions that are currently budgeted and noted vacancies exist because of revenue shortfalls- and, wouldn't call them "fat'' in the budget. Council Member Healy commented the .course outlined by the City Manager is one the Council should take at this point. He added the fiscal situation is likely to get worse and the example used by the City Manager regarding, the choice not to fill the •Assistant City Manager position after r January 26, 2004 Vol. XX, Page l 1 1 2 ,Mr. _Beatty left, is reflective that City Hall can adapt. He conceded. the Council may..be looking at service level reductions and supports the 3 recommendations currently presented by the City manager. He 4 concluded by stating he is, glad to hear the City Manager is seeking input 5 from employees. 6 does business. He stated the need„ for a compensation audit and his 7 Council Member Torliatt indicated she too is glad to see the City Manager 8 will engage employees -in the process., She suggested when the Council 9 looks at next year's budget that they look at potentially increasing the 10 number of capital projects that can be completed. She noted the City 1 1 does take: an administrative fee: off of some of those projects that are non- 12 general fund projects that we can use for some revenue sources. 13 Because of the economic times on some of the projects we've actually 14 come in underbid on . a lot of the enterprise fund projects. She indicated 15 capital; projects should be moved; forward and "kicked up" - and 16' referenced specifically the second phase of the Recycled Water Pipeline 17 Project. She concluded by stating the recommendation by the City 18 Manager is a good course of' action and the City is in this predicament 19 because the state took the money away, not because the City hasn't 20 budgeted in a prudent manner. 21 but the Pentamation Program should be available very soon. This will 22 Council Member Harris stated he appreciated the City Manager's 23 prudent approach and that he 'is glad, to see an additional $300,000 24 proposed to go to . street maintenance. He, too, supported the 25 involvement of employees for input and stressed the need for appropriate 26 economic development to move forward. • 27 28 Vice Mayor Moynihan commented the council should have a proactive 29 approach, rather`than a reactive approach. He indicated steps should be 30 taken now forthe future and stressed the need to revaluate how the city 31 does business. He stated the need„ for a compensation audit and his 32 concerns regarding leaving positions frozen but still "funded" in the 33 budget. He then commented on the 5% administrative fee on capital 34 improvement projects and indicated doing $54M in capital improvement 35 projects over the next year is unrealistic. He urged the City Council to set 36 a compensation policy as -a; proactive approach to the budget problem. 37 38 City Manager Bierman disagreed with that approach. 39 40 Mayor Glass noted 55% of the City's budget goes to the Police and Fire 41 Departments and explained the City's binding arbitration process. He 42 indicated the City would be involved in negotiations with the Fire 43 Department this year and the Police Department next year. 44 45 City Manager Bierman noted variance. reports have not been available, 46 but the Pentamation Program should be available very soon. This will 47 result in departments receiving monthly reports, which has not previously 48 been the case. 49 50 Mr. Thomas explained the full use of the Pentamation Program would be • 51 available for use for next year's budget. 52 Vol. XX, Page 12 January 26, 2004 I The City Council acknowledged. Mr. Thomas -for the strides made in fiscal 2 accounting over the last couple 'of years and commended' him for a job well 3 done. 4 5 ADJOURN 6 7 The City Council adjourned the meeting at 8:25 p.m. in memory of Eleanor Corda and 8 Yolanda Hromek. 9 10 12 13 14 David Glass, Mayor 15 16 Attest: 17 18 19 20 21 Gayle Petersen, City Clerk 22 23 24 * * * * * * * * * * * * * * ** 25 27 • 27 28 29 30 31 32 33 •