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HomeMy WebLinkAboutcc min 2007/04/19 MINUTES OF AN ADJOURNED REGULAR MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA April 19, 2007 6:00 P.M. An Adjourned Regular Meeting of the City Council of the City of Chula Vista was called to order at 6:01 p.m. in the Police Department Community Room, 315 Fourth Avenue, Chula Vista, California. ROLL CALL: PRESENT: Councilmembers: Castaneda (arrived at 6:05 p.m.), McCarm, Ramirez, Rindone (arrived at 6:12 p.m.), and Mayor Cox ABSENT: Councilmembers: None ALSO PRESENT: Interim City Manager Thomson, City Attorney Moore, Assistant City Clerk Norris, and Senior Deputy City Clerk Peoples PLEDGE OF ALLEGIANCE TO THE FLAG AND MOMENT OF SILENCE PUBLIC COMMENTS Bob Thomas, Chula Vista business owner, talked about services his business provides that could result in savings of 10% to 30% for the City. Steven Pavka, Chula Vista resident, commented on alleged predatory towing companies within the City. I. BUDGET WORKSHOP . Introduction Interim City Manager Thomson extended appreciation and compliments to City Staff involved in preparing the budget. He then provided an overview of the workshop agenda. . Fiscal Year 2006 - 2007 Budget Update Finance Director Kachadoorian provided an overview of general fund reserve projections as of June 30, 2007, and noted that the third quarter report would be brought before the Council in the near future. BUDGET WORKSHOP (continued) . Fiscal Year 2007 - 2008 Budget Update Budget and Analysis Director Van Eenoo discussed the findings and recommendations to strengthen the City's financial condition contained in the independent financial review. He then provided information on the base budget gap; items included in the base budget; the base budget reductions; budget balancing criteria; actions taken to close the gap; the budget balancing plan by service area; the budget balancing plan, including the base budget adjustments; fiscal year 2007/2008 position reductions; fiscal year 2007/2008 position reductions by service area; and the proposed base budget reductions by department. Deputy Mayor Rindone stated that consideration needed to be given to alternative resources, such as the expansion of the auto park, which will also provide financial assistance. . Five- Y ear Revenue and Expenditure Forecast Report Update Finance Director Kachadoorian provided the preliminary five-year forecast of the projected deficit and surplus summary. She noted that the updated five-year forecast without the fiscal year 2008/2009 gap closed reflected expenditures rising but revenues falling, resulting in diminished reserves. However, with the gap closed, the reserves would drop but then rise again. She then presented a graph showing the historical and projected sales tax from 1989 through 2013, comparative sales tax growth by the City, and comparative sales tax growth by the County. . Budget Balancing Proposals Budget and Analysis Director Van Eenoo introduced the 19 proposed budget reductions totaling $3.9 million, beginning with the reduction in management level support positions in the City Manager, Community Development, Finance, Human Resources and Library departments, followed by anticipated service impacts. Councilmember Ramirez stated that the new City Manager should handle the downgrading of an Assistant City Manager position to an Economic Development Officer to allow for continued focus on high profile projects in a cost effective manner. Mayor Cox clarified her understanding that this was staff's recommendation for fiscal year 200712008 in order to provide a stronger presence during the next two to six months on the university park and bayfront projects, which need to keep moving forward. Deputy Mayor Rindone supported staffs recommendation, noting the time gap prior to the new City Manager coming on board, as well as the time period the new City Manager would need to make appropriate assessments. Director Van Eenoo then presented proposed reductions in non-management support positions in the Finance, General Services, ITS, Library Services, Human Resources, Fire, Office of Budget and Analysis and Planning and Building departments, including anticipated service impacts. Page 2 - Council Minutes http://www.chulavistaca.2ov April 19, 2007 I I; BUDGET WORKSHOP (continued) Councilmember Castaneda asked about the ability to streamline business license and other City services, to make them more user friendly and perhaps handle them over the City website. Finance Director Kachadoorian responded that the ability to use credit cards has been implemented as the start of the transition to website use for various account collections. Councilmember Ramirez encouraged General Services Director Griffin to explore ways to bring in volunteers to assist staff. Director Griffin addressed the volunteer programs already in effect at the facility, as well as the recently created 501 (c)(3) organization called H.E.A.R.T., which assists in fundraising and volunteer opportunities. Deputy Fire Chief Geering presented the budget reduction proposals for 2007/2008 and their effects on the Fire Department. Budget and Analysis Director Van Eenoo presented the services and supplies reductions, touching on citywide cell phone use, and noted that staff was looking at the implementation of restrictions to reduce costs by 20% or $50,000. Councilmember Castaneda asked if staff was looking primarily at reductions in consumption of supplies and services or competitive contracts, noting that Mr. Thomas stated his firm could provide products and services to the City that would save 30% to 40%. He asked staff to provide an analysis to the Council. Mayor Cox inquired, and Finance Director Kachadoorian responded, that the City piggybacks on competitive city bid contracts throughout the state. Councilmember McCann asked about cell phone contracts. Director Kachadoorian responded that the City has a contract with Verizon, and the Police Department uses Nextel. Deputy Mayor Rindone asked staff to review the possibility of establishing a cap stipend for those who have City cell phones, along with a requirement that the phones be used only for City business. Budget and Analysis Director Van Eenoo provided anticipated servIce impacts based on the proposed services and supplies reductions. Councilmember Ramirez spoke regarding the need for discussion on performance measurements and analyses. Director Van Eenoo responded that in the past, the Office of Budget and Analysis led the budget process. The independent financial review consultant believed the City was on the right track with regard to developing strategic planning, and he spoke regarding the departments that have gone through the managing-for-results process. Mr. Van Eenoo also stated that additional work would be done to link resources to priorities, but without the assistance of outside consultants. Further, there are currently plans and a performance matrix that needs to be fit into the budget process. Page 3 - Council Minutes httn:/lwww.chulayistaca.2.0Y April 19,2007 BUDGET WORKSHOP (continued) Councilmember McCann asked that staff do further analyses and provide information to the Council regarding cell phone contracts, noting that there is a highly competitive market. Director Van Eenoo then presented the proposed extension of the furlough program to include management and confidential staff, and possibly staff who belong to the Western Council of Engineers. Finance Director Kachadoorian introduced the Development Services proposed reductions of $849,000 and noted that the figures assumed that 1,200 building permits will be issued this year and 1,600 next year. Interim City Manager Thomson stated he believed the 1,600 number was too high, and he was looking at scaling it back, which would result in an increased deficit. Acting Assistant City Manager/City Engineer Tulloch stated that Development Services consisted of Planning and Building, Community Development and Engineering, whose efforts have resulted in millions of dollars in new sales and property taxes and thousands of new jobs over the past several years. He additionally noted that the majority of the staff costs were fully recoverable based on the fees charged. Planning and Building Director Sandoval provided an overview of development trends, noting that regionally, most planning and building departments recovered approximately 50% of their costs, whereas Chula Vista's Planning and Building department had recovered 90% and Engineering recovered approximately 80% due to being the fifth fastest growing city in the state. Acting Assistant City Manager/City Engineer Tulloch reviewed the anticipated impacts of the reduction in Development Services' positions and services and supplies budgets. Councilmember Castaneda expressed concerns with the elimination of neighborhood traffic calming programs. Mr. Tulloch responded that they would be continued in a streamlined way, with staff identifying conditions that would lend themselves to traffic calming techniques, and with the engineers applying their learned techniques to solve the problems. With regard to the inability to expand the infrastructure asset management effort, Mr. Tulloch stated that staffwas still committed to implementing the program, but it would take more time to implement than initially planned. Police Chief Emerson addressed the impacts of the proposed budget reductions on his department, noting that they would have to do more with less, and learn to say no occasionally. Mayor Cox called a brief recess at 8:16 p.m. She reconvened the meeting at 8:30 p.m., with all members present. Assistant City Manager/Library Director Palmer provided an overview of the impacts of the proposed reductions in service levels at the Civic Center and South Chula Vista Libraries, as well as the elimination of the Adult Literacy Program and reduced Cultural Arts staffing. Page 4 - Council Minutes httu:llwww.chulavistaca.gov April 19, 2007 BUDGET WORKSHOP (continued) Deputy Mayor Rindone asked that a minimum of one library remain open during the holiday furlough and that staff look elsewhere for cost savings. With regard to the Adult Literacy program, he asked staff to continue to look at partnerships to site the program at the libraries. Councilmember Castaneda asked staff to report back on resources currently available in the community. Mr. Palmer responded that the Library staff has been diligent in looking at community resources, but many programs were fee-based, whereas the Adult Literacy program had been free. Recreation Director Martin provided a brief summary of the proposed reductions for recreation facilities and various operational changes. Public Works Operations Director Byers provided proposed reductions in park servIce maintenance levels, reduced street sweeping services, and reduced tree-trimming services. Councilmember Ramirez asked staff to review the agreements with the leagues that use City facilities, consider a potential fee increase, and perhaps create a partnership whereby the teams assist with routine maintenance such as trash pick -up and restroom clean-up. Mayor Cox spoke regarding reduced tree trimming services and the potential resulting increase in City liability. She assured the residents that if they saw a tree that needed trimming or was damaged, staff would continue to take immediate action. Budget and Analysis Director Van Eenoo introduced the new fee revenues proposed by various departments, potentially amounting to $536,000, and noted that the proposals would be brought to the Council by the individual departments for approval prior to the beginning of fiscal year 2007- 2008. Police Chief Emerson presented his department's proposed new revenues, increased alarm permit and penalty fees for third and fourth false alarms. Councilmember McCann asked that when the department brings the proposal back for Council approval, the report include comparisons of fees currently charged by other cities, if other cities are considering raising fees, and if so, to what. Councilmember Ramirez believed it would be appropriate to create a greater deterrent and increase the fee for a third false alarm to $100 and the fourth to $200, with perhaps greater sensitivity given to residential alarms. Budget and Analysis Director Van Eenoo presented the City Clerk's proposal for the implementation of passport services. Councilmember Castaneda expressed concern that implementation could take away from the provision of core municipal services, and he requested a report on what staff was required to do to process the documents. Councilmember Ramirez expressed concern about taking on a new service that had potential for complaints if something went wrong. Page 5 - Council Minules htto://www.chulavistaca.flov April 19,2007 BUDGET WORKSHOP (continued) Deputy Mayor Rindone expressed confidence in City Clerk Bigelow's staff and stated that if the Post Office could perform these services, he was sure City Clerk staff could, as well. Councilmember Ramirez expressed concern about possibly involving the library in the processing of passports. Interim City Manager Thomson responded that staff felt the provision of services at libraries on weekends would increase the library business. Fire Marshall Gipson provided an overview of various proposed fire permit fees, including fire safety engineering construction permits and fire code inspection operational permits. Assistant Director of Planning and Building/Building Official Remp provided an overview of proposed new fees for distressed property management and property profile reporting programs, noting that the latter would recover costs from those who created the problems. Councilmember Castaneda asked if the City required legal authority to implement such a program. Mr. Remp responded that staff would be returning to the Council with a proposal to create the necessary legal authority, and he assured the Council that this program had been implemented and legally tested in other cities. City Attorney Moore stated that she would work with the department to ensure that the City would not have legal exposure from implementing the program. Recreation Director Martin presented proposed increases in recreation fees, noting the inclusion of an increase in sports league fees and the contractual instructors' class fees. Councilmember Ramirez asked staff review setting limits on scholarships so as not to create a larger group that cannot afford the fees. Mayor Cox suggested that staff compare the fee structure every one or two years against that of other cities, so as not to create the appearance of dramatic increases. Budget and Analysis Director Van Eenoo stated that staff was still looking for ways to fill the remaining $400,000 budget gap. He then provided an overview of other budget items, including the request for the addition of one Fire Prevention Engineer based on increased fee revenues; the addition in General Services of one staff position based on savings resulting from the elimination of the holiday lighting contract; and the anticipated mid-year appropriation of grant funds for additional Police staffing. He provided the next steps in the budget process, which included the finalization of the budget balancing recommendations between April 20 and 30; development of the proposed budget document between May I and 23, the submittal of the proposed budget to the Council on May 24, a presentation on the proposed budget to the Council in early June, and Council adoption ofthe budget on June 19. Councilmember McCann asked staff to look at using a baseline of 1,000 for permits in the future, continue to work on closing the $400,000 gap, make sure to recapitalize reserves by maintaining services but looking at how to continue to meet the 8% and getting some type of buffer, and to review the big picture. He then stated that what would drive the budget and keep the City financially healthy would be the large projects that would bring in revenue without having to raise taxes, such as the Bayfront project, the University, Auto Park, redevelopment and the Eastern Urban Center. Page 6 - Council Minutes http://www.chulavistaca.20V April 19,2007 BUDGET WORKSHOP (continued) Councilmember Ramirez referred to comments by the independent financial review consultant pertaining to reserves under Item C, section 4, stating that he would be interested in conversations with various departments on needs for specific programs. He encouraged staff to bring them forward. Deputy Mayor Rindone expressed his appreciation to staff for their diligence and briefings, noting that with all of the challenges, there was no other city with greater opportunity than Chula Vista for major projects that could positively change and benefit the City. He cited the Urban Core Specific Plan, Bayfront Plan, the expansion of the Auto Park, and the establishment of the Eastern Urban Center, which was actually like building a city. Additionally, Deputy Mayor Rindone stated that City staff needed to stay the course and make sure there was proper staffing to bring the large projects in. He thanked Interim City Manager Thomson for his leadership in looking how to make a difference in the quality oflife for the City's residents. Norberto Salazar, Chula Vista resident, representing the Southwest Chula Vista Civic Association, stated that there were concerns in the communities in southwest Chula Vista, and he encouraged the Council to fund the maintenance and infrastructure needs, and reduce the backlog of infrastructure projects. Further, he believed that redevelopment in Chula Vista was in jeopardy, which meant staff needed to pay closer attention to the needs of and elevate the older communities. Mr. Scott, ChuIa Vista resident, stated he was happy the Council had settled on a new City Manager whom he hoped had negotiating skills. He then expressed his view that once the MOU was reached for the Police Department, its expenditures should have gone down and revenues up, but that was not so. Further, that he felt City employees made too much money, their salaries were not comparable to the military, and since the salaries were ample, employees should not be given high raises. Budget and Analysis Director Van Eenoo thanked the department heads and City staff for their budget proposals. 2. RESOLUTION NO. 2007-093, RESOLUTION OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA DIRECTING STAFF TO BRING FORWARD A ONE- YEAR BUDGET FOR COUNCIL CONSIDERATION BEGINNING FISCAL YEAR 2007-2008 Beginning with fiscal years 2001-2002 and 2002-2003, budget staff prepared a two-year budget for Council consideration. A biennial budget has served the City well over this time. However, there are several factors that make long-term revenue and expenditure projections difficult at this time. Therefore, it is recommended that the practice of preparing a two-year budget be suspended and that a one-year budget be prepared beginning with fiscal year 2007-2008. (Director of Budget and Analysis) ACTION: Deputy Mayor Rindone offered Resolution No. 2007-093, heading read, text waived. Councilmember McCann seconded the motion, and it carried 5-0. Page 7 - Council Minutes htto:! /www.chuJavistaca.gov April 19, 2007 CLOSED SESSION Mayor Cox announced that Closed Session would not be held, and no action was taken on the following items: 3. PUBLIC EMPLOYEE APPOINTMENT PURSUANT TO GOVERNMENT CODE SECTION 54957(b)(I) Title: City Manager 4. CONFERENCE WITH LABOR NEGOTIATORS PURSUANT TO GOVERNMENT CODE 54957.6(a) Umepresented employee: City Manager ADJOURNMENT At 10:03 p.m., Mayor Cox adjourned the meeting to the Regular Meeting of April 24, 2007 at 6:00 p.m. in the Council Chambers. Page 8 - Council Minutes httn://www.chulavistaca.QOV April 19, 2007