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HomeMy WebLinkAboutcc min 1982/04/05 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA, CALIFORNIA Held Monday - April 5, 1982 at 3 P.M. Council Conference Room - City Hall Councilmen present: Mayor Cox, Councilmembers Scott, Campbell Councilmembers McCandliss and Gillow arrived late Councilmen absent: None Staff present: City Manager Cole, Assistant City Manager Asmus, Development Services Administrator Roberts PRE BUDGET MEETING I. FISCAL OVERVIEW a. Fiscal Indicators. Chief Accountant Renee Franken projected graphs on a screen showing t~e Consumer Price Index (CPI) figures for the years 1978-79 through 1981-82 noting the increase of 47.8% while revenues have increased 31.6% and expenditures 44.4%. As to the total operating revenues versus the total operating expenditures, Mr. Franken stated that in lg78-Tg, through lg7g-80 fiscal years, the revenues and expenditures went up at a constant rate; however, in 1980-81, a trend was started whereby the revenues were not keeping pace with the expenditures - revenues going up 12% and expenditures 13%. In the 1981-82 budget, there was a further erosion of revenues as compared to expenditures showing a gap of $1,840,961. Mr. Franken then discussed the revenues versus expenditures per capita ex- plaining that in lg78-Tg, there was $184 per capita increasing to $215 in 1981-82 (a 17% increase). The expenditures per capita were $175 in 1978-79 increasing by 35% to $237 in 1981-82. As to the selected major sources of revenues, the sales tax figure for 1978-79 was $3,435,712 increasing to $4,100,000 in 1981-82 - an increase of 19.3%; the CPI figure would have shown this increase as 48%. The property taxes show a figure of $2,709,755 for 1978-79 and $3,020,000 for 1981-82 - an increase of 11.5%. The motor vehicle license tax was $1,260,321 in 1978-7g to $1,3g0,000 (10.3% increase) for 1981-82. The State reduced the City's motor vehicles licenses by $460,000 last year. Director of Finance Grant depicted a chart showing the preliminary budget sunana~ figures: estimated reserve for July l, 1982 is $8,432,350 which includes the general fund balance of $2,992,250. There is anticipated the payback of the loan made to the Redevelopment Agency of $542,240. Hr. Grant explained the various fund accounts noting that the Golf Course Revenue Fund shows a deficit of $1,254,030 due to the loan made for renovation. The Special Gas Tax Fund shows a balance of $1,193,200 - this is a high figure because some of the projects approved for construction were held in abeyance due to accumulating funds for the "H" Street road construction. (Councilwoman McCandliss arrived at this time - 3:30 P.M.) The Workers Compensation Trust Fund has a balance of $1,145,760. Mr. Grant explained that he has attempted to get a balance of $1,000,000 to handle the claims inasmuch as the City is self-insured; therefore, the average of $145,760 can be used for the operation of the City . Mr. Grant reported that the Governor wants to change the lien date for pro- perty taxes from the first MondRy in March to June 30, re-appraising all the property changes. If this comes to pass, Chula Vista will get an additional $200,000. Council Conference - 2 - April 5, 1982 As for the sales tax, the Governor, as a one-time acceleration, proposes to have the duly 1982-83 sales tax payment made in dune 1982 which would give Chula Vista an additional $128,700. Other sources of revenues discussed by Mr. Grant were the lodgtng tax, fran- chise taxes, utility unsers' taxes, and motor vehicle license fees. Assistant City Manager Asmus submitted a chart showing the duly 1, 1982 est1- mated operating reserves/estimated 1982-83 Income and Preliminary Operating Expenditures Summary. Mr. Asmus explained that for the past few years, $129,000 has been taken out of the Gas Tax Fund to pay the street maintenance people and although salaries have increased 40% the same a~ount of $12g,000 is being taken out of the Gas Tax Fund again this year in order to keep as much funds as possible in this account for the "H" Street project. Mr. Asmus then discussed estimated opereting reserve for 7-1-82 - $4,915,000; estimated operating income 1982-83 $15,656,000; total operating income available - $20,571,000; preliminary operating expenditures - $17,325,000 and the preliminary operating reserve for 7-1-83 $2,711,000. The tentative reductions are: requested capital outlay - $322,000 and requested new per- sonnel - $213,000 deducted from the preliminar~ operating expenditures, making a total of $17,325,000 and added to the preliminary operating reserve 7-1-83 making that total $3,246,000. This results in a short-fall of $1,669,000. Council discussion followed with staff on the funds to be set aside for "H" Street construction; the need for a plan whereby there will not be a shortfall - the City would not utilize any reserves this must be done within two years; the Council needs to be informed on the questions of what is attainable - what can be obtained - what are the problems in trying to obtain this type of budget; it would be prudent to start making cuts in the budget right now; the only thing that might help the budget would be a "turn-around in the economy." II. ADMINISTRATIVE SERVICES a. Discussion - Need for Public Relations/Citizen Assistance/Mayor/Council Assi stance City Manager Cole explained that this item came about as a result of dis- cussion with the Mayor - his desire to have someone to do some work for him in the line of minor research, studies, citizens complaints, etc. Jim Thomson, Director of Management Services, said he has been working on an Analysts Review along with the Director of Personnel this study will be ready for Council in three to four weeks. Mr. Thomson stated that there are presently 14 Analyst positions in the City - six of which are specialized positions. He then noted the types of assignments applicable to the Analysts positions. Referring to the proposal for a Citizens Assistance Officer for the Mayor/Council, Mr. Thomson listed a few typical duties that could be performed by this Officer. (Councilman Gillow arrived at this time.) Mayor Cox expressed his needs for an Assistant; the members of the Council followed with a discussion pertaining to the present budget constraints and generally the types of duties outlined by Mr. Thomson which could conceivably be done by staff members. b. Report on current Centrex Telephone System Administrative Assistant Marilyn Leuck reported that the Centrex system in- stalled in 1978 reached a cost of $86,570 in 1980-81 and an estimated cost of $103,538 in 1981-82. She expressed the need for a study of the entire system considering the alternatives of (1) modifying the Centrex system or (2) pur- chasing a private system. The recommendation at budget review will be to hire a neutral telecommunication consultant at a cost of approximately $8,000 to do this study. Council Conference - 3 - April 5, 1982 DINNER BREAK: 5:17 to 5:52 P.M. III. LEGAL SERVICES a. Report on current legal service costs City Attorney Lindberg submitted a survey of the cost of legal services for fiscal year 1981-82 for this City as compared with other cities in the County. The remarks of the Council were on the need for developing expertise "in-house;" the desire for the City Attorney to attend the monthly meetings of the Redevelopment Agency; and general discussion on the areas now represented by Special Counsel: Town Centre and Bayfront. IV. PERSONNEL a. Shortened Work Week Director of Personnel Thorsen discussed a voluntary program currently being tried in other areas, particularly the Santa Clara County program in effect since 1976 involving "post" positions. The employee's work week is reduced by a certain percent; however, the work assignments remain the same. There is the provision for "call-back" should the work fall behind. The employee, if he so chooses, could work a 32 hour week - complete his regular 40-hour work assignments - and get paid for the 32 hours. Miss Thorsen said she is still researching this program and will have more information for Council by budget review. V. BUILDING AND HOUSING a. City-wide utility costs/eneroy conservation efforts Director of Building and Housing Grad), presented a chart showing an overview of the total consumption and cost of energy specifically as it applies to the buildings and grounds. Mr. Grady compared the figures from 1971-72 through 1981-82 noting the escalating energy costs - both electrical and water. Ne then reviewed the steps taken to reduce energy costs in the City and future conservation efforts. Senior Civil Engineer Goldkamp discussed the energy costs of street lights commenting that the costs are rising faster than the revenues: one-third of the energy costs of the City are due to the street lights - $550,000. After Proposition 13, the City cut back on a number of street lights and converted a number of them to sodium vapor. Presently, there are 76 groups in the City that are paying for street lights they requested be turned back on. Mr. Goldkamp added that in 1978, the energy cost was $194,000 (2550 street lights) and for 1981-82, the projected cost is $375,000. Development Services Administrator Roberts spoke on the fuel costs reporting that in 1973-74, the cost for fuel was .204 per gallon for 17,460 gallons per month or a cost of $43,000. In 1980-81, the increased cost was $1.20 - 15,815 gallons were used at a total cost of $228,000; however, in 1981-82, the em- ployees cut down on the use of vehicles and the fuel cost decreased to $1.10 - 14,380 gallons per month was used at a total of $190,000. Mr. Roberts noted the actions taken to reduce fuel costs, such as: use of compact cars and trucks, propane gas, radial tires, automated fuel system. VI. LIBRARY a. Automated Services City Librarian Rosemary Lane discussed the three projects proposed for the next fiscal year: (1) a new central processing unit; (2) cataloging informa- tion service; and (3) computer producing cataloging. Miss lane noted the costs, operation and efficiency saving methods of the ALIS II (Automated Council Conference - 4 - April 5, 1982 Library Information System); the OCLC (On-Line Computer Library Center); and COM CAT (Computer Output Microform Catalog). The cost for the ALIS II is $6,175 with a State rebate of $6,000 making a net cost to the City of $175. OCLC's total cost to the City is $7,095; however, there would be a staff reduction figure of $4,233 making the total $2,862. As to the COM CAT cost, it would be $7,640 for 8 microfilm readers and $13,197 of production costs. Miss Lane declared that there would be a five-year savings of $42,000 for this program. CONTINUATION OF AGENDA ITEMS MSUC (Scott/McCandliss) to consider the first page of the agenda only at today's meeting and continue the rest of the items to Thursday, April 8, 1982 at 4 P.M. VII. PARKS & RECREATON a. Update and overview of Open Space Districts/need for Contract Coordinator Director of Parks and Recreation Pfister discussed the formation of the Open Space Districts since 1972 up to the present time whereby the department maintains ten open space districts consisting of 230 acres. Mr. Pfister noted the problems encountered with the maintenance of these districts and what could be done in eliminating the problems if a contract coordinator was hired, such as (1) better management of utilities, especially water usage; (2) supervision of the contractors' performances; and (3) upgrade the level of maintenance without increasing the Maintenance District Assessments. VIII. COMMUNITY DEVELOPMENT a. Funding of Public Relations/Economic Development Program Director of Community Development Desrochers asked for Council's direction in carrying out the recommendation of Caray Company for the formation of an Economic Development Office using 40% City funds and 60% private sector money. Mr. Desrochers indicated that the City funds would be approximately $64,000. He added that there is about $30,000 in redevelopment funds for public relations, 50% of which could be used for the City's share of this program. Council discussion ensued as to the $25,000 budgeted for the past two years for this purpose; the meetings held on this subject; the areas of redevelop- ment for which this office could be used; the need for the City to budget the funds to show "good faith." It was concurred that redevelopment money be used and that Mr. Desrechers and staff start preparation for forming an Economic Development Office. AI~OURI~4ENT at 7:36 P.M. to the meeting scheduled for Tuesday, April 6, 1982 at 7 P.M. and Thursday, April 8, 1982 at 4 P.M. M. Fulasz; CMC, ,~xOennle Clty Cl~frk