HomeMy WebLinkAboutCity Council Minutes 05/22/2002May 22, 2002
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Vol, 37, Page 443
1 City Council Meeting Minutes
2 Wednesday, May 22, 2002 - 7:00 p.m.
3 Budget Workshop
4
5 PRESENT: Mayor Thompson, Vice Mayor Healy, Cader-Thompson,
6 Maguire, Moynihan, O'Brien
7 ABSENT: Torliatt
8
9
10 PLEDGE OF ALLEGIANCE -Finance Director Bill Thomas
11
12 PUBLIC COMMENT
13
14 None
15
16 COUNCIL COMMENT
17
18 None
19
20 BUDGET WORKSHOP
21
22 Transient Occupancy Tax (TOT)
23
24 Finance Director Bill Thomas explained that community organizations' TOT
25 requests are reviewed by asub-committee consisting of Vice Mayor
26 Healy, Councilmember Cader-Thompson and Councilmember Moynihan
27 to make recommendations for funding.
28
29 Councilmember Cader-Thompson clarified that the money removed for
30 the Downtown Association's directory could be reinstated if the budget
31 permits, Mr, Thomas said this would be a priority in the mid-year budget
32 review based on actual TOT money coming in,
33
34 Councilmember Moynihan noted that what was requested was higher
35 than what is shown with $572,200 pared down to $520,200. He suggested
Vol. 37, Page 444 May 22, 2002
1 lowering expenditures below last year to set the tone for the year and
2 feels that there is room in these numbers for further reduction. Asked Mr.
3 Thomas to review the fund balance.
4
5 Mr. Thomas - On page 13, the budget assumes a fund balance of $50,000
6 approximately, but TOT is not as strong as last year but the Sheraton Hotel
7 should help.
8
9 Public Comment
10
11 Angie Sanchez, Hispanic Cultural Development Corporation -Thanked
12 the committee for the $4,000 grant. This will help with the "Day of the
13 Dead" exhibit.
14
15 Marjorie Helm, Petaluma Arts Council -Wanted to second Ms. Sanehez's
16 appreciation of support.
17
18 Gail Wilson, Petaluma Arts Council -This event was very community-
19 inclusive last year. The "Day of the Dead" will be bigger and better this
20 year.
21
22 Samantha Freitas; Petaluma Downtown Association - Thanked the
23 Councilmembers for the start-up money for the "Art and Garden" event.
24 Asked for support for funding of the Downtown Directory as an economic
25 tool for the Downtown.
26
27 Ann Derby, Petaluma City Ballet -TOT funding is the reason that they are
28 growing. The use of TOT funding has increased patronage and this year
29 the "Nutcracker" was completely sold out for the first time.
30
31 Council Comment
32
33 Councilmember Moynihan stated that the objectives of the Petaluma
34 Visitors Program (PVP) were not met by adding administrative support of
35 $1,300. This is basically underwriting copying costs for all the organization.
36 This group will make a proposal to the City in the future for a River
37 Authority and that proposal should be considered at that time.
38 Underwriting the cost of the formation of this group shouldn't be covered
39 under TOT grants. He requested that the PVP allocation be reduced by
40 $1,300. He felt that the Cinnabar Arts grant of $65,000 was high and he
41 would like to reduce that request by $2,000.
42
43 Councilmember O'Brien asked how he arrived at $2,000.
44
May 22, 2002
Vol. 37, Page 445
1 Councilmember Moynihan - It was a small sum that should be
2 acceptable. Going from $65,000 to $63,000 lowers their allocation below
3 last year's. This will set an example and keep a lid on expenditures. There
4 is not enough money to maintain our streets and this is one area that can
5 be trimmed,
6
7 Councilmember O'Brien -Would not be in favor of cutting either one of
8 these, considering the number of visiting yacht clubs that spend about
9 $300 -$400 per boat when they come into town.
10
11 Ms, Freitas -The boating community pours an estimated $600,000 per
12 year into the downtown community and this activity needs to be
13 encouraged. PVP helps with controlling negative publicity about the
14 downtown area,
15
16 Councilmember O'Brien is aware of the efforts of the Visitors Program in
17 helping yacht clubs with their concerns. Part of this $1,300 is for the
18 Wetlands Park Alliance as well. The members of the River Authority are
19 trying to clean up the River to make it more attractive to visitors. Cinnabar
20 Theater is an asset to this community, and he would not support asking
21 them to give up $2,000..
22
23 Councilmember .Maguire -These are dollars that are stretched for the real
24 benefit of the community, There are areas where significant cuts have
25 been made, such as $5,000 from the Petaluma Museum Association. He
26 supports the "Art and Garden" program and expects it will have
27 tremendous payback. Cutting $ l ,800 would not be worthwhile,
28
29 Valerie Richman, Cinnabar Theater -The $65,000 is for advertising and
30 with advertising costs going up each year, the theater must make up the
31 difference.
32
33 Mayor Thompson -Thanked everyone who worked on the budget and
34 the timely presentation, He stated that repairing the streets is a top priority
35 for the Council but that is a large project that will not be part of this
36 budget. He stated that the $140 million would take the entire General
37 Fund budget for the next five years.
38
39 City Manager Fred Stouder -The budget is cost-effective and if another
40 10% were cut, or roughly $3.1 million, drastic services reduction and lay-off
41 of employees who provide these services would have to be done,
42 Depending on how the cuts were done, the largest departments, such as
43 Police and Fire, would be affected the most. He listed the equipment and
44 personnel that would be reduced in the various departments and the
Vol. 37, Page 446 May 22, 2002
1 affect this would have on services provided to the community, He could
2 not support further reductions.
3
4 Councilmember Cader-Thompson -Thanked Mr. Stouder for providing the
5 numbers and felt that this budget could not withstand another 10%
6 reduction.
7
8 Mayor Thompson requested that Mr. Moynihan not repeat what he has
9 said at prior budget meetings. Mr. Moynihan stated that he felt an open
10 discussion is important in a democratic society.
11
12 Councilmember Moynihan stated the budget figure of $358,450 for Street
13 Maintenance was inadequate. He feels that the $1.1 million coming from
14 the Gas Tax, of which $850,000 covers salaries and benefits and other
15 General Fund expenditures, needs to be prioritized. The failure to put
16 money into Street Maintenance requires shilling this to capital
17 improvements and that the cost goes up each year that the streets are
18 not adequately budgeted to be maintained. He stated that tough
19 decisions have to be made in cutting personnel and reductions in other
20 areas. He explained that in five years the General Fund expenditures have
21 increased 42% and that thirty employees have been added and these
22 additional salaries and benefits affect the amount of money to be used
23 for maintenance of the infrastructure of the City,
24
25 Mr. Thomas explained that there was absolutely no increase in City
26 Manager's personnel in this budget. An Assistant City Manager is
27 budgeted. He explained that a portion of the City Manager's salary and
28 benefits are allocated to Redevelopment and that the Assistant City
29 Manager is 100% from the General Fund.
30
31 Councilmember Maguire pointed out that there is a 7% decrease in the
32 budget from last year..
33
34 Vice Mayor Healy clarified that the General Plan budget was what was
35 approved previously affer the Council re-affirmed the program, He was
36 appreciative that the General Plan is expected to be adopted in October
37 of 2003 ,
38
39 Mr, Thomas pointed out that there were transfers into the General Fund to
40 pay about $640,000 of the General Plan,
41
42 General Plan Administrator Pamela Tuff -Yes, the budget reflects the
43 three-year program that was approved in June of last year.
44
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May 22, 2002
Vol. 37, Page 447
Councilmember Moynihan asked if the total General Plan budget is still at
$3 million and Ms. Tuft explained that this includes the Water Resources
Element and the rest of the General Plan. She explained that the
apparent increase from $574,000 to $917,000 repeats funds from last
year's budget that were not spent but committed to contracts.
Councilmember Moynihan asked about the $585,000 for contract services
in this year's budget. Mr. Thomas explained that in last year's budget a lot
of the expenses of the General Plan were not in the General Fund but in
the Water and Water Pollution Control funds. At this point, most of that
work has been done and now the money is coming from Traffic Mitigation
and Redevelopment funds.
Councilmember Moynihan asked if the Gas Tax would be paying for part
of it and didn't see any transfers-in covering the new General Plan. Mr.
Thomas explained that there isn't atransfer-in, it's a charge to other funds
that shows on the allocation overhead charges and it's in the
administrative overhead. He offered to provide these numbers.
Councilmember Moynihan stated that the $585,000 coming out of the
General Fund affects the City's cash flow and maybe this should be
reevaluated if the Council wants to commit $3 million to the General Plan
update. He felt that spreading out or some other alternative could be
used to prevent the $585,000 coming from this year's General Fund even if
it is partially carried over from last year.
Councilmember Maguire wouldn't support this, The Council has set its
priorities and commitments on the General Plan process.
Mr, Stouder -Council can always revisit this as it did eighteen months ago
when Ms. Tuff made a 10% - 15% cut. The General Plan must be kept on
schedule. It is the City's reinvestment and business plan and affects the
CIP that comes from it and the community's future.
Vice Mayor Healy felt that by stretching this out it would actually increase
the cost even if some money would be saved in one fiscal year.
Councilmember Cader-Thompson pointed out that by using the old
General Plan information, the City never has the current information with
which to move forward. She asked that if the majority of Council supports
the budget, they move forward to expedite this process.
Councilmember Moynihan noticed a bb% increase in Geographic
Information Service (GIS), Is there some reason for a growing demand for
this service? Was there an increase in staffing?
Vol. 37, Page 448 May 22, 2002
1 Mr. Thomas explained that there are two places where the increase is
2 coming from. The allocation from the Information Services fund for support
3 they provide to GIS was increased from $5,400 last year to $34,000, of
4 which $10,000 was for capital equipment with staffing remaining the
5 same. Mr. Stouder offered to provide the capital equipment information.
6
7 Ms. Tuff - Councilmernber Moynihan had a question regarding the
8 $25,000 for Professional Contractual Services. She explained that it is
9 primarily for software. The $10,000 is to provide the next level of software
10 services to a number of departments. The $25,000 reflects the fact that
11 the GIS Division consists of one staff member and requires contract
12 services with the company whose software is used for the GIS base data
13 and toward converting the current Auto-CAD database to GIS, Various
14 departments need this information because it delineates the location of
15 sewer and water lines as well as parcel-specific information.
16
17 Ms, Tuff explained this expense has not been in past budgets because it
18 was part of the General Plan budget and prior to that there wasn't a GIS
19 Department, as the services were covered under the Planning
20 Department's budget. To compare this year's and last year's budget
21 would require doing some homework and since GIS Manager Trae
22 Cooper was not available, they would defer until he is available. Mr.
23 Stouder offered to make note of the question as to why aten-times
24 increase in services and supplies has occurred and have it answered in
25 writing.
26
27 Vice Mayor Healy suggested that the GIS presentation emphasize and
28 explain the cost savings and efficiencies that the GIS program will allow
29 the City to achieve in terms of being better-working, smarter-working.
30 What the budget presentation shows is the technical accomplishments,
31 without understanding why these things are so important to the
32 organization.
33
34 Ms. Tuff briefly outlined the efficiencies and accuracy of the GIS
35 information that can be used to the City's benefit. This would assist other
36 departments in maintaining the City's infrastructure and would replace
37 the hand-drawn maps the City currently uses.
38
39 Councilmember Cader-Thompson made the point that it costs money to
40 bring this organization up to the informational level needed and that
41 Council has been working to get to this point to make the organization
42 efficient.
43
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May 22, 2002
vol. 37, Page 449
1 FBuman Resources
2
3 Human Resources Director Dennis Morris summarized the department's
4 budget. The overall budget is down 4% from last year and the full-time
5 employees (FTE's) are going from 4 to 3 'h, including the half-time position
6 being shiffed from the City Clerk's Office, resulting in the elimination of
7 one FTE.
8
9 Councilmember Moynihan requested an explanation of the revenue
10 transfers-in for General Revenue sources, Workers' Comp funds, Employee
11 Benefit Funds and how that has been changing.
12
13 Mr. Morris -That is just the overall claims expense and even with the same
14 number of claims, the costs are going up. In the private and public
15 sector, the overall average increase was due to increased medical costs
16 of 20%. The goal is to decrease Workers' Compensation costs by 10%.
17
18 Mayor Thompson shared that in his experience in the insurance business,
19 and even without any claims, the renewal premiums are up 18% - 30%
20 across the board. Even the lowest paid clerical expenses have gone up
21 15% - 20%,
22
23 Councilmember Moynihan wondered if the City is still doing this internally?
24 Have any municipalities outsourced this type of thing or gone with outside
25 insurance? Mr. Morris explained that there is a combination of in-house
26 and outside staff who provide the legal and administrative assistance to
27 the City. He explained that the City is self-insured and that is the least
28 expensive alternative in his experience in both county and city
29 government.
30
31 Mr. Stouder explained in response to Councilmember Moynihan's question
32 concerning the lid on vacations that this had been removed sometime in
33 the 90's in order to have enough people available to do the work, so
34 employees were allowed to not take vacations. This resulted in the City
35 accumulating a $700 - $800,000 unfunded liability. To solve this liability
36 problem, the number of vacation hours that the Management Team
37 could accrue was capped and a little each year of the amount owed will
38 be paid over aten-year period to each employee.
39
40 Councilmember Moynihan wanted clarification of the increase in
41 employee benefit funds over what has been traditionally spent and the
42 roughly a 30% increase in estimated spending this fiscal year.
43
Vol. 37, Page 450 May 22, 2002
1 Mr. Morris -Primarily shilling some expenses that should have been
2 employee benefits all along from Human Resources to Employee Benefits.
3 These include the Work Enhancement program, Career Development and
4 Employee Assistance. It appears to be an increase, but it is really being
5 budgeted in the proper fund for the first time.
6
7 Councilmember Moynihan asked if in past years there was also a shift for
8 the actuals and the budgeted. Mr. Thomas explained that this hadn't
9 been done. The budget indicates shilling the increase for services and
10 supplies was due to the reserve of $175,000 to cover increased healthcare
11 expenses and the shill of the centralization of the recruitment expenses
12 into one area from Human Resources.
13
14 Councilmember Moynihan asked why there was such a large overage
15 last year in Claims Expense, Wanted clarification of the budget amount of
16 $750,000, when the last three years have resulted in claims expense well in
17 excess of that, Mr. Morris explained that he has developed afour-part
18 strategic plan that will reduce overall claims expense in spite of medical
19 costs increasing. The City's REMIF administrator feels that this will work.
20
21 Vice Mayor Healy noticed that the completed "Personnel Policies and
22 Rules Manual" will be ready for distribution and that this is an
23 accomplishment,
24
25 Finance Department
26
27 Finance Director Bill Thomas - He will be implementing the new financial
28 management soffware package. The RFP should be ready sometime in
29 August to begin implementation of the new package in late fall. Also
30 anticipates the implementation of the GASB 34 requirements as required
31 for the FY 2002-2003 statements, Also proposed to reclassify the Water
32 Financial Manager to Budget Analyst in 2003 to help with water and sewer
33 rate calculations and to assist in budget preparation.
34
35 Vice Mayor Healy -Under Commercial Services in processing utility bills,
36 does the current software allow for use-based sewer rates for residential
37 and tiered rates for water? He wanted this added as a Performance
38 Measure not only for Finance but for the water/sewer utilities as well.
39
40 Mr. Thomas -Yes, at this time it is capable of this or can be modified to do
41 so.
42
43 Councilmember Maguire -Are streets accounted for in GASB 34?
44
May 22, 2002
Vol, 37, Page 451
1 Mr. Thomas -Yes. He will work with existing auditors to do an evaluation of
2 our streets. The package offers a comprehensive change to the way
3 accounting is done and will be more like the public sector than the
4 government sector.
5
6 Councilmember Moynihan had questions about the GASB 34
7 requirements for cities of different sizes to convert at different times.
8
9 Mr. Thomas explained it was not based on population but total revenues.
10 The GASB 34 requirements are for the financial statements, not budget
11 preparation.
12
13 Councilmember Moynihan wanted clarification of what services the
14 Finance Department had taken over and the expenditures associated
15 with this.
16
17 Mr, Thomas explained that in 2001, Risk Management, which included
18 Workers' Comp and employee benefits, was placed under Finance. In
19 2002 Workers' Comp became Human Resources' responsibility and
20 Finance maintained the liability side of Risk Management.
21
22 Councilmember Moynihan noted the variance from last year's budget
23 from $2.8 to $3.5 and asked if that also reflects the changes in services
24 being provided by the Finance Department?
25
26 Mr. Thomas explained that the variance is due to claims expense, which is
27 the liability cost, and the biggest one was Lionsgate last year.
28
29 Councilmember Maguire felt it was important for the Council to realize
30 how much the GASB 34 requirements will require of the Finance Director's
31 time.
32
33 Mr. Thomas - He anticipates long hours because it is the first time.
34
35 Councilmember Moynihan extended a thank you and a compliment to
36 Mr. Thomas and Risk Manager Ron Blanquie. The processes and internal
37 controls in paying liabilities and covering litigation expenses have
38 drastically improved and controls are in place now.
39
40 Mr, Thomas -With Mr. Blanquie's help, we've got subrogation receipts of
41 almost $60,000 in recoveries that we've never received before,
42
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Vol. 37, Page 452 May 22, 2002
1 Public Facilities and Services
2
3 Public Facilities and Services Manager Rick Skladzien explained that the
4 budget divisions are the same and the budget remains the same. The
5 Airport did go up this year as a reflection of the increased landings and
6 take-offs and more fuel sales. They hope to implement an automated
7 system for instrument flights in adverse weather to allow charter flights to
8 land safely. There has been an increase in Turning Basin revenue as well,
9
10 Councilmember Maguire asked if collection of the nightly fee from people
11 has been effective.
12
13 Mr, Skladzien -Yes. There have only been two or three uncollectibles from
14 over 800 users.
15
16 Councilmember Moynihan questioned the $400,000 capital equipment
17 acquisition under Vehicle Replacement.
18
19 Mr, Skaldzien answered that this is for the purchase of Animal Services
20 pick-ups, a new boom truck for Traffic Control, and one new truck to tow
21 the blowpatcher, instead of renting a truck for this purpose,
22
23 Councilmember Moynihan asked if these vehicles would be put into a
24 maintenance program and has it been funded? Has a replacement fund
25 been created?
26
27 Mr, Skladzien -Yes, This is a scaled down version to match the size of the
28 city and to match the revenues available.
29
30 Mr. Stouder -The replacement fund has $3 million plus as noted in the
31 budget. When equipment is transferred from one department to another,
32 the receiving department pays a depreciated cost to the former
33 department.
34
35 Councilmember Moynihan had questions about the pothole patching
36 done internally and that contracted out. He wanted clarification of the
37 contract item for overlays approved for $230,000, and the budget of
38 $108,000 for Services and Supplies, and asked if this was included in the
39 CIP.
40
41 Mr. Skladzien -Yes. He explained that $108,000 is for internal Services and
42 Supplies, The contract involves $230,000 of Gas Tax money that is
43 allocated for the on-call contractor.
44
May 22, 2002
Vol. 37, Page 453
1 Mr. Stouder -The operation and maintenance of the streets are in the
2 Operation and Maintenance budget. The Capital Reinvestment will
3 require $5,000,000 for rebuilding the streets in future years based on
4 revenue sources. Council will be discussing this during the Capital
5 Improvement Program. Major reconstruction of the streets is not in this
6 budget, but operation and maintenance of the streets are.
7
8 Councilmember Moynihan requested clarification of the contract of
9 $220,000 for maintenance and where it appears in the budget. Mr.
10 Skladzien explained that contract maintenance is separate from internal
11 maintenance and Mr. Thomas explained that contract maintenance is in
12 the Gas Tax in summaries at the beginning of the budget.
13
14 Mr. Stouder explained that the crews do the individual potholes and that if
15 a larger area is involved, the on-call contractor is called. This may go out
16 to bid to see if a better price can be found.
17
18 Councilmember Moynihan requested clarification of the Gas Tax
19 Summary and where the transfer of funds to the on-call contract is
20 indicated.
21
22 Mr. Thomas explained the transfer of $850,000 of Gas Tax fund to the
23 General Fund was to support PF&S without aone-to-one ratio. Also, on
24 page 8 on the Gas Tax Summary, there is budgeted $653,000 for on-going
25 Street Maintenance that does not include capital improvements that will
26 be coming under a separate cover.
27
28 Councilmember Moynihan pointed out that under expenditures of Street
29 Maintenance this is a new line item; last year's summary only had Street
30 Projects. The whole amount went into Street Projects, of which a portion
31 was dispersed into the City's budget, and a portion went into the Capital
32 Improvement Program. Now, for Maintenance, even though $800,000 is
33 indicated, it is transferred out and he doesn't see where it is being put into
34 the maintenance program.
35
36 Mr. Thomas explained it is being put in as support of the PF&S Department.
37
38 Councilmember Moynihan stated he understood, but now there is a
39 contract for services, which is covered under the description of Street
40 Maintenance on page 287, and there is a contract of $220,000 and the
41 budget shows Services and Supplies of $108,000.
42
43 Mr. Thomas explained that the contract was being funded from three
44 different sources, the General Fund, Water Utility, and Water Pollution
Vol. 37, Page 454 May 22, 2002
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Control Fund because a portion of the street repairs are due to trenching
and cutouts as a result of water utilities and the sewer repairs.
Councilmember Moynihan stated that explained descriptions of other
transfers into the General Fund but it didn't explain why there is an
expenditure,
Mr. Thomas stated that money would not be transferred into the General
Fund. It would be a direct charge against the Water Fund or the Sewer
Fund for those.
Councilmember Moynihan asked why this wouldn't be shown as an
expenditure under Maintenance, then as different revenue source with a
transfer-in for that,
Mr. Thomas replied that no transferring in is taking place. This is actually a
charge and is shown on the agenda bill with charges to three different
funds.
Councilmember Moynihan needed clarification as to why this isn't put
through as Maintenance, Asked if it shows under Water as Street
Maintenance.
Mr. Thomas referred his question to Water Resources and Conservation
Director Tom Hargis, when he is available. He indicated that included is a
new item in the Gas Tax for Street Maintenance to identify how much
money was spent on Street Maintenance coming from the Gas Tax funds.
Councilmember Moynihan questioned that $1.1 is received in Gas Tax,
and of that, $358,000 among other things, is being spent on street
maintenance?
Mr. Stouder clarified that there is a personnel cost in street maintenance.
Councilmember Moynihan wanted clarification of the $358,000. Does it
include salaries and services, supplies and benefits that would be for the
personnel to do street repair?
Mr, Stouder offered to lay this out in a more descriptive way if it would
make sense for the Council.
Mr, Skladzien indicated that the line item is added into the Gas Tax, This
indicates money is going into the contract maintenance work. The
$108,000 is going into Internal Operations. This separates the two funds,
May 22, 2002
Vol. 37, Page 455
1 and that is what is needed to do the operations by the City, and the
2 balance is for on-call.
3
4 Mr. Stouder clarified that all the Gas Tax being spent on Street
5 Maintenance can be determined by putting together all three to equal
6 the Gas Tax and a chart could be provided to show this,
7
8 Councilmember Maguire pointed out that this budget is clear and
9 delineates specific details. Cannot account for every single dollar in a
10 discrete manner in a budget.
11
12 Councilmember Moynihan questioned the average salary and benefits of
13 around $57,000 - $58,000 for the custodial, supervisor and facility
14 maintenance worker positions. According to his survey with the county
15 and city schools, it appeared that these positions are $10,000 - $15,000
16 higher than neighboring governmental agencies.
17
18 Mayor Thompson deferred to Mr. Morris to answer this. Since this has
19 already been answered, he asked if any other members had any
20 concerns about salary figures and how they compares to other cities,
21
22 Councilmember Moynihan expressed his desire to include his suggestion in
23 the minutes. It would be appropriate for the Council to evaluate the base
24 salaries for all general positions and make sure they are competitive and
25 not high. He also wanted clarification of the 10% budget increase in
26 Animal Services.
27
28 Mr. Skladzien explained that the demands placed upon this division of the
29 department have increased. He gave an example of 210 Baker Street as
30 a situation that increased costs. With the remodeling of the Animal Shelter,
31 increased traffic is expected.
32
33 Councilmember Moynihan questioned the elimination of Licensing and
34 Permit Revenue and charges for services, He sees an increase in General
35 Revenue Sources from $433,000 from last year's budget to $610,950,
36 resulting in a budget increase of 41 % from General Fund, Why is the City
37 paying that much more from General Revenue Sources and not from
38 these other revenue sources?
39
40 Mr, Thomas explained this change in the budget resulted in the
41 elimination of the detail of what is being generated as far as revenues, All
42 revenue in the General Fund that is showing on the summaries is General
43 Fund and the delineation in this budget between General Fund
Vol. 37, Page 456 May 22, 2002
1 Resources, Enterprise Resources, and Internal Services Resources is in the
2 summaries, where the revenues that we receive are specifically identified.
3
4 Councilmember Moynihan was having difficulty associating the Cost
5 Revenue Study with the City's administrative recommendations as to what
6 the proposed charges should be,
7
8 Mr, Thomas explained it would be the increases in fees that were
9 proposed as part of the Cost of Services study that will be coming to
10 Council with the fee schedule and it will show the current and proposed
11 fees delineated by department,
12
13 Councilmember Moynihan wanted clarification of how the numbers
14 added up to a 10% increase from the General Fund and wanted to see a
15 breakdown of License and Permit Revenues that offset Operational
16 Expenses,
17
18 Mr, Thomas replied that qll the revenue put into the General Fund is
19 General Fund resources, since the departments do not budget based on
20 their revenues. At the front of the budget it is shown where the $132
21 million comes from that included Animal Services. The fee schedule will
22 show revenue by department.
23
24 Councilmember Moynihan questioned how the additional revenue from
25 the recent additional traffic officers offset their cost and where would this
26 be shown.
27
28 Mr. Thomas said this is a line item in the General Fund revenues, Traffic
29 Fines and Forteitures is summarized in the back pages and the detail is
30 shown in the front as General Fund Revenues,
31
32 Councilmember O'Brien complimented the Public Facilities and Services
33 Department on their courtesy and response time to complaints of
34 streetlights and traffic lights that are out,
35
36 Vice Mayor Healy understood that the Animal Shelter is in a transitional
37 phase and the new facility,. when it opens, is going to require the
38 department to really increase the volunteer effort to provide the long-
39 term efficiencies and cost-savings needed.
40
41 Mr. Skladzien -With Budget/Grants and Projects Manager Jim Ryan's help,
42 they started this last year with the Budget and Grants Division to do
43 budget tracking and identify where money is not being used and where
44 they are short, so a realignment can be done.
May 22, 2002
Vol. 37, Page 457
1
2 Vice Mayor Healy felt that the salary ranges, with the unions and
3 bargaining units in the City, have been set according to comparable
4 cities. This is public information and is updated periodically, and the
5 salaries don't appear to be over in any significant way.
6
7 Councilmember Cader-Thompson pointed out that staff doesn't seem to
8 ,increase, An example is the Traffic Engineer position. Will there be more
9 people available and on the streets in the future?
10
11 Mr, Skladzien stated Public Facilities and Services Department staffing has
12 remained static in the last several years, even though the City has grown.
13
14 Parks and Recreation Department
15
16 Jim Carr, Parks and Recreation Director -Parks and Recreation and
17 Marina staff try to brokerage resources as much as possible and examples
18 of achievements are: McNear Playground -Petaluma Rotary Club -
19 $60,000, Polly Klaas fundraiser - $265,000, the Coastal Conservancy
20 $450,000 grant to expand the Shollenberger Trail, the Petaluma Senior
21 Center using Proposition 12 funds and fundraising for the renovation, the
22 increased use of the Petaluma Community Center.
23
24 The Park Master Plan was to be part of the General Plan but there wasn't
25 enough input from the community on the direction. The Youth Commission
26 and Teen Council are expanding their youth activities and work closely
27 with the school district bringing in dollars through the school district, and
28 other grants.
29
30 The Marina has new policies and enforcement policies to eliminate the
31 backlog of past-due rent and developing a workout plan with the new
32 Sheraton Hotel. The impact of the hotel is unknown, but with each new
33 office building, there is generally a 5% increase. He wants to free-up dock
34 space to make it a destination for boaters. Negotiations on the hotel's
35 share of the cost will need to be held.
36
37 The Parks and Recreation Department has acquired new maintenance
38 areas and staff is still able to maintain adequately.
39
40 Councilmember Cader-Thompson - The expansion of the polishing
41 wetlands will bring in revenue with TOT dollars and other dollars and be a
42 huge boon to the community. Would like to see Parks and Recreation
43 look at this project and plan.
44
Vol. 37, Page 458 May 22, 2002
1 Councilmember Moynihan complimented staff on their work on the
2 Landscape Assessment Districts (LADs) and other areas and the increase
3 in Revenue Sources from non-General Fund Sources as well as a decrease
4 in spending. The benefits show a 28% increase, Is this reflecting
5 interdepartmental charges?
6
7 Mr, Carr explained it would be primarily salaries and benefits which are
8 negotiated, no increases.
9
10 Councilmember Moynihan requested an explanation regarding the
11 aquatics program increase of 9% from last year, The previous estimate
12 was for a severe drop in salaries, but the number of positions remains the
13 same.
14
15 Mr. Carr explained that the season has been shortened. The pool was
16 replastered the year before. Last year the pool was open from May 1st to
17 Labor Day. The salaries represent the lifeguards and the City has to be
18 competitive to attract employees.
19
20 Councilmember Moynihan .had questions about the lack of Lafferty inter-
21 departmental charges and thought expenditures to date on the project
22 were understated. He also asked if any money was budgeted for
23 litigation.
24
25 Mr. Carr explained that only $160,000 for the first phase of the park was
26 included in this budget. That money was used for litigation and the
27 Environmental Impact Report (EIR). Any other funding didn't come from
28 Parks and Recreation. The EIR is completed, and until the budget is
29 stabilized, no more money is budgeted.
30
31 Councilmember Moynihan requested a full accounting of all expenditures
32 and staff time from all the various departments that contribute to this
33 project so that the community can see the full cost impact.
34
35 Mr. Carr replied that the summary of all costs could be provided.
36
37 Councilmember Moynihan -That summary didn't reflect the time of the
38 City Attorney and other General Fund costs.
39
40 Councilmember Cader-Thompson wanted clarification on the large
41 increase for the Youth Program 2001-2002,
42
43 Mr. Carr explained that Youth and Teens are combining into Youth
44 Programs.
May 22, 2002
Vol, 37, Page 459
1
2 Councilmember Cader-Thompson wanted an update from the Pool
3 Committee and to follow-up on what they have done,
4
5 Mr. Carr gave an update that the Committee was asked to substantiate
6 the Utility and Revenue Sources information and they haven't responded.
7
8 Councilmember Maguire responded to Councilmember Moynihan
9 regarding Lafferty. He would not support using staff time to research and
10 there has been an accounting of legal, staff and EIR costs that satisfies the
11 majority of Council.
12
13 Public Comment
14
15 Victor Chechanover, Petaluma -Had questions about the Marina loan
16 and negotiations with the state.
17
18 Mr. Stouder explained that there are no provisions to repay the state and
19 there is no active negotiation at this time.
20
21 Mr. Chechanover clarified that he meant the inter-departmental loans.
22 What payments are being made: principle, interest or principle and
23 interest?
24
25 Mr, Stouder stated that through negotiations, the City is hoping to erase
26 that obligation, The idea of the Marina was to bring economic
27 development.
28
29 Mr. Chechanover stated that the City's contract was the only one to
30 obligate with General Fund dollars instead of from Marina revenues, He
31 asked if the inter-departmental loans carried the Marina and were there
32 subsidies from other sources, and the interest building up.
33
34 Councilmember Moynihan explained that the Interfund Loan Summary
35 showed that interest was being paid and that the fund balance is
36 negative and will be lower this year. He further explained that PCDC is not
37 being repaid and the money may come out of the General Fund.
38
39 Mr. Thomas explained that he is involved in discussions with a consultant to
40 pursue a plan that will show Boating and Waterways that revenues have
41 been maximized and expenses minimized so that they will consider the
42 loan. This proposal suggests rearranging the docks and working with the
43 Sheraton Hotel to increase revenue. At this point the fund balance is
44 growing negatively from the interest owed. The interfund loans are shown
Vol. 37, Page 460 May 22, 2002
1 on the quarterly Treasurer's Report with loans from PCDC and Water, too.
2 The debt is tied to the Marina and not the General Fund, with the revenue
3 generated from the Marina covering its day-to-day expenses.
4
5 Vice Mayor Healy stated that with the Sheraton opening, it would provide
6 the last opportunity to improve the operations. This may be the opportune
7 time to deal with the issue.
8
9 Councilmember Moynihan had questions about the administration of the
10 Child Care Fund so that it would make less of a demand on personnel. He
11 asked if any other services could be shiffed or eliminated to assist in
12 operations.
13
14 Mr. Carr explained that Petaluma People Services Center (PPSC)
15 administers the program and the City requests payment affer review. He
16 didn't feel that trimming and cutting services would satisfy the .public..
17
18 Community Development
19
20 Community Development Director Mike Moore explained the problem
21 with the staffing level in the department with six vacancies this year. He
22 was grateful for the staffing of three of the frozen positions.
23
24 Mr. Moore acknowledged Plans Examiner Cliff Kendall for his work in the
25 Building Department. The department is working on the final stages of its
26 internal reorganization that will improve the level of customer services and
27 expand code enforcement. They are working toward a full cost recovery
28 that will stabilize staffing, in spite of the business cycle. The four contract
29 planners work at no cost to the City, This is acost-effective way to add
30 staff and experienced planning assistants. Initial meetings on the Central
31 Petaluma Specific Plan (CPSP) will be scheduled and he hopes to have it
32 adopted this year. The department is working on the new development
33 code and hopes to use the regulations developed in the CPSP as a
34 model.
35
36 Technology use is expanding with the new permit tracking software that
37 will allow on-line access to check the status of permits. A planning module
38 is being developed to track applications and encroachment permits. The
39 department's web presence has been expanded and most application
40 forms and handouts are available. The next step is to put the zoning
41 ordinance on the web with afull -color zoning map.
42
43 Councilmember Cader-Thompson asked how many positions were open
44 in the department.
May 22, 2002
Vol. 37, Page 461
1
2 Mr. Moore explained that at present there are six vacancies. There
3 weren't any new positions, only positions that were allocated in the
4 current budget but were frozen. The six vacancies are; Chief Building
5 Official, Planning Technician, Office Assistant II, Associate Engineer,
6 Administrative Secretary, and Permit Processing Technician,
7
8 Councilmember Cader-Thompson wanted a policy in place that would
9 not allow the contract planner reviewing for the City to also write the
10 document.
11
12 Mr. Moore replied that he would like to discuss that issue .separately and
13 doesn't believe it is an issue. He explained that this is similar to when the
14 department prepares environmental documents and presents them as
15 well as a recommendation.
16
17 Councilmember O'Brien complimented staff on their work,
18
19 Vice Mayor Healy asked if the Nexus study and the proposed fee
20 increases were going to be part of this budget document or a separate
21 action. He asked if this will be based on all departments and if a staff
22 report will be provided.
23
24 Mr, Moore said that was.correct.
25
26 Mr. Stouder offered to provide one consolidated memorandum from the
27 previous discussions,
28
29 Mr. Thomas indicated that he is working towards breaking out Community
30 Development as asemi-enterprise fund in the future,
31
32 Councilmember Moynihan questioned the increase in Zoning and
33 Subdivision Revenues from $75,000 to $250,000 and that raising the fees
34 could reduce the demand.
35
36 Mr. Moore explained that the numbers are conservative and .based on
37 actual projects on-line. The Zoning and Subdivision Fees are less certain
38 but have been analyzed based on actual. past experience,
39
40 Councilmember Moynihan asked how this revenue plan was reached. He
41 had questions about the frozen and unfrozen positions and funding for the
42 twenty-two positions, He wanted clarification of .hiring the additional three
43 people and the increase of $60,000,
44
Vol. 37, Page 462 May 22, 2002
1 Mr. Moore explained that the positions are currently unfrozen and budget
2 authorized, but not filled. He explained that the three positions are not
3 new but were frozen due to budget uncertainty.
4
5 Discussion continued to clarify staffing of the Community Development
6 Department. The outcome was an understanding that the total positions
7 funded are twenty-two, with the current number of positions filled being
8 sixteen, with six vacancies.
9
10 Councilmember Maguire had a question regarding the increase in
11 Development and Zoning and Engineering Fees, and the large decrease
12 in the General Revenue Sources.
13
14 Mr. Moore deferred to Mr. Thomas.
15
16 Vice Mayor Healy questioned the feeling in the trade that these types of
17 fees are not terribly price sensitive,
18
19 Mr. Moore explained that with the information he had, this was becoming
20 a standard throughout the state. There is an expectation that someone
21 will be billed for staff time, An internal system needs to be developed to
22 clearly account for staff time spent on each application.
23
24 Vice Mayor Healy explained the budget workshop schedule changes for
25 the public's information..
26
27 Councilmember Moynihan had questions about the fee schedule and
28 was assured it would be available by next week, He questioned the time
29 period for adoption of the budget on July 1St and the need for an
30 emergency ordinance last year. He was assured that an emergency
31 ordinance is routine and that no additional .meetings were necessary.
32
33 ADJOURN
34
35 The meeting was adjourned at 9:40 p.m
36
37
38 E, Clark Thompson, Mayor
39
40 ATTEST;
41
43 ~l
44 Paulette Lyon, Interim Cit~'Clerk