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HomeMy WebLinkAboutcc min 1995/06/14 MINUTES OF A SPECIAL WORKSHOP/MEETING OF THE CITY COUNCIL OF THE CITY OF CHULA VISTA Wednesday, June 14, 1995 Council Chambers 6:10 p.m. Public Services Building CALL TO ORDER 1. ROLL CALL: PRESENT: Councilmembers Alevy, Moot, Padilia, Rindone, and Mayor Horton ABSENT: None ALSO PRESENT: City Manager, John D. Goss; City Attorney, Bruce M. Boogaard; Deputy City Manager, Jim Thomson; Finance Director, Robert Powell; Community Development Director, Chris Salomone; Budget Manager, Dawn Herring; Conservation Coordinator, Michael Meatham; Senior Management Assistant, Gerald Young; and City Clerk, Beverly A. Authelet. BUSINESS 2. REVIEW OF BOARDS AND COMMISSIONS, COMMUNITY PROMOTIONS BUDGETS, DEPART~JENTAL BUDGETS, AND CARRY OVER ITEMS City Manager Goss stated that traditionally the City Council has held this workshop in the Council Chambers since it provides an opportunity to the public to address issues especially when it comes to the Boards and Commissions and ~/lso the Community Promotions budget. Also, tonight there are additional budgets which have not been reviewed: the Capital Improvement Program, the City Attorney's budget, the Community Development, Re, development, and Debt Service. Mr. Goss presented the City Council requested carryover list with the costs. Councilman Rindone stated that Council had asked for some specific amounts and variations. City Manager Goss stated that he was right. The list shows the total price tag as it was presented; there are clearly choices with some of them that might have middle-of-the-road kind of numbers. City Manager Goss stated that Council indicated that they wanted to take a look at the reserve balances which he presented in overheads. He pointed out that the general fund has grown although it is proposed to go down by about $3.2 million. It shows the general percentage which has been about fairly even over the past two to three years. Councilman Rindone requested an analysis of all of the reserve accounts. Finance Director Powell stated this was summarized in the back of the budget on page 364. Councilman Rindone asked is the net increase of the aggregate reserves is about $5 million. City Manager Goss responded yes. Councilman Rindone asked about the Redevelopmerit Agency reserve. Finance Director Powell stated that it was on page 368 at the bottom of the page. It is the same information for the various funds in the Redevelopment Agency. Minutes June 14, 1995 Page 2 Councilman Rindone stated that in following .the same logic, the aggregate reserves conring in for the Re, development Agency is a deficit of $246,000 which includes the housing funds. When will the sale of one or two pieces of property be reflected. Finance Director Powell responded that he was not sure which of the two columns, estimated income or other financing sources, reflected this. Councilman Alevy asked if there were any payment schedules that we are ahead of schedule so that we may choose to lessen our interest rate. Is there anything available that we may free up some funds. Finance Director Powell responded that we are not paying ahead of any schedules. Over the last three years, the City has refmanced about everything that we could retinanee, as we did on the Bayfront Town Centre I Tax Allocation Bonds, we extended the maturity date on those bonds and achieved some savings there. We have refmanced two or three other bond issues in the last couple of years in order to try to reap current savings. BOARDS AND COMMISSIONS BUDGET: City Manager Goss stated that the Budget Manager has reviewed these and made the recommendations. The Boards and Commissions as a whole went through and did an excellent job of recommending reductions for their budgets. There are some issues regarding the Economic Development budget and the overall issue of economic development of the City. It might be more appropriate to discuss this at the time the Community Development budget is being considered. Mayor Horton opened the meeting for public comments. Those addressing Council were: Larry Bntfelder, 1595-57 Mendecino Drive, Chula Vista, 91910, representing the International Friendship Commission. He stated that the rationale for their cuts was that there was a relatively large amount of funds left in the accounts. He pointed out that they were careful not to succumb to the thought that they should spend whatever funds were allocated within a given year in order to be assured that the same amount of funds would be available next year. He felt that this was not being responsible, especially in these fiscal times. They tried to be very frugal and responsible. They are willing to bite the bullet next year in reasonable proportion. He hoped that because they were willing to be frugal, it would give them the credibility to come to Council and discuss how they might need funds, especially for promotional activities. Mayor Horton asked if funds had been included in their budget for a visit from our Sister City, Odawara, Japan. Mr. Britfelder responded that they had turned in their initial proposal, even including the cuts; they did have that in mind. They have extraordinary responsibilities for next year. They were willing to use their money a little 'smarter' than usual in accommodating the additional needs. Obviously there are limits as to how much you can squeeze a budget. Mayor Hotton asked if they were requesting that their budget to remain at $5,000 plus for 95/96. Mr. Britfelder felt that it would be reasonable to do something approaching the normal cuts of approximately 10 percent that the commission suggested. Someone had suggested that if Council had concern about the large amount of promotional funds left in the account, perhaps a small revolving fund could be set up and we could draw funds from that on a periodic basis based on need on a case-by-case basis with authorization from the Council or a delegated staff member. Steve Palma, 176 Montgomery Street, Chula Vista, 91911, representing Parks and Recreation Commission. He stated he did not favor reducing anything in the Parks and Recreation budget including reducing employee salaries. At the next Parks and Recreation Commission meeting, he was going to go on record opposing votes he had cast Minutes June 14, 1995 Page 3 raising fees. He had originally thought that by raising fees, they would improve services. He now felt that will not be the case, nor did he find that the fees which were raised would be returned to the Parks and Rec Department so they could increase services. Suzanne Rameriz, 139 Fifth Avenue, Chula Vista, 91910, representing the International Friendship Commission. She pointed out that this year they spent less than normal because this was an organizational year. They had fewer exchanges this past year and had no grants to administer. She wanted Council to be aware that next year there will probably be a great deal of activity. In pan because most of the organization has boen done, and they expect to be back to business as usual. Also, 1996 is the fifteenth anniversary of our relationship with Odawara, Japan and twenty-fifth anniversary of our relationship with Irapuato, Mexico. There will probably be exchanges both ways. This is always a problem with their budget; a project can start in one budget year and end in another. She asked that the Council go on record, as they have in the past, that although their budget is being cut that the Council will be very receptive when they come back and have actual dollar amounts that they are going to need for promotional activities. Patricia Kelly, 274 Del Mar, Chula Vista, 91910, representing the Design Review Committee. She presented a request from the Design Review Committee regarding account 5221, travel, conferences, and meetings. She stated the budget amount was very minor which had been set at $260 for the past several years. It has been recommended to cut this to $100 this year. They have decided to forgo seminars and workshops this year, but the $100 doesn't cover the single expenditure that they requested to cover the expenses for the committee to attend the annual Beautification Awards dinner. They re, quested an increase to $120 - $160 to cover this expense. Dency Souval, 698 Gilbert Place, Chula Vista, 91910, representing the Cultural Arts Commission. She reported that the Commission wanted to add that they discussed the recommendation of the Ruth Chapman Performing Arts Center manager. They feel very strongly that they would prefer to have the Cultural Arts Coordinator position funded first. City Manager Goss stated that they recommend deferring the funding of the full time Cultural Arts Coordinator by deferring'the Comnxission's request for funding of Mosaic Arts and Humanities Month program, the Chula Vista music competition, the public arts restoration consultant to the 96/97 budget process, but approve $1400 for the Cultural Arts Commissions attendance at the National Assembly of Local Arts Agencies Conference. Mayor Horton recommended that the International Friendship Commission receive the same funding as last year recognizing that they may have to come forward to ask for more funds later for promotional type activities. Councilman Rindone suggested that this be put on the carryover list. He was not going to vote for any funds to enrich any category until we have a vote to see if we are able to remove the drop in pay for the Park and Recreation workers. his (Horton/Rindone) to put this on the carryover list. Mayor Horton stated she would like to carryover the Economic Development Commission's funding request for support of the South County EDC. MS (Horton/Rindone) to also carryover the South County EDC's request. VOTE ON BOTH MOTIONS: Carried unanimously. MSUC (Alevy/Horton) to approved Budget Supplemental 21 to defer all but $1400 to next year and be added to the Cultural Arts Commission's budget to support a Cultural Arts Commissioner's attendance at the 1996 National Assembly of Local Arts Agencies (NALAA) Conference. Minutes June 14, 1995 Page 4 MSUC (Rindone/Alevy) to give conceptual approval to the balance of the Boards and Commission's budgets. CO]~BIUNITY PROMOTIONS City Manager Goss stated there were a number of items being recommended such as suppo~ for the summer concert series, Miss Chula Vista contest, the Chamber of Commerce, the U.N. Day Committee, the Earth Day Committee, and Bonitafest. What has been added in this category has been other events such as Harbor Days, the Fourth of July fireworks, Summer Pops concerts. Also, included inn this budget is the TOT increase which the Chamber of Commerce will be administering to promote business and economic development in the City per our agreement with them. Councilman Rindone asked why did we budget the $100 for Earth Day. City Manager Goss replied that the City Council has approved $300 annually to support Earth Day. Since there is an effort to try to cooperate and participate with other cities around the County for the Earth Day celebration at Balboa Park rather than each city doing their own thing, it was requested that the City chip in $100 instead of $300 for the comh'lg fiscal year. Councilman Rindone supported participation and recognition of the Earth Day activities, but stated he would like to keep the dollars in town. He was not excited about supporting activities in other communities. Conservation Coordinator Meacham stated that the $100 would be sufficient for this year for doing something in town because of the success we have had with the used oil opportunity grants and some other grants that are potentially forthcoming to the City. These funds will probably be used in conjunction with Southwestern College and other agencies within the City. Councilman Rindone stated he would support leaving that $100 in the budget, but with the caveat that it is for some activity for this purpose within the City. He liked the idea of using some of the oil monies for this purpose. Councilman Rindone asked if we were getting our money's worth for the $20,000 for marketing staff of the CONVIS since this is another $20,000 which we send out of the community. Senior Management Assistant Young stated that the $11,025 is the line item for CONVIS dues. That was a budget based on what they had indicated originally was their proposed dues for 95/96. The indication at this point is that they will not be increasing those dues for 95/96, so it will remain at the $10,500 current level. The $20,000 for marketing staff is part of the overall contract that is anticipated with the Chamber of Commerce as part of the agreement regarding the TOT increase which is something that would be administered by the Chamber of Commerce. Councilman Rindone stated that what might be helpful to note someplace (perhaps in the special notes in non- departmental) all the different aggregate funding that we participate with the Chamber, because there is a little bit here and there in the budget. If staff could take note to try to pull those various pieces together to have a summary page in the alternative ways in which City supports the Chamber would be helpful. Councilman Alevy asked if $18,100 toward the provision of new market staff for visitor promotions and then another $20,00 for marketing staff were two separate items or are we giving $38,000 for the same thing. Senior Management Assistant Young replied that the City has had a contract with the Chamber for general information services. When that contract and the visitor information center contract were merged in December, there was some thought that there could be some efficiencies achieved by both of those services being provided by the same group. In anticipating a new contract for convention and visitor promotion services, the thinking on both Minutes June 14, 1995 Page 5 parties was that the labor cost for the preexisting contract could be reduced by $18,100 and compensating for that we were budgeting a new amount of $20,000 for new marketing staff. So the actual increase is approximately $1,900 and is something that we are continuing to negotiate with the Chamber. MSUC (PadiilalAlevy) to give conceptual approval for the Community Promotions budget. CAPITAL BfPROVEMENT PROJECTS BIJD GET City Manager Goss stated he had the transparencies that he used when he presented the Capital Improvement Budget at the initial budget meeting if Council wished to see them again. There was one additional item, Supplemental Budget 17, which relates to the Legislative Office building. We have had State legislators move out and have utilized a portion of this space for the Senior Volunteer Patrol program. Staff is recommending that the CIP budget be modified in order to do some remodeling in the Legislative Office building and the Community Development building in order to accommodate the BECCA staff and to move the Housing staff to this location in order to free up some space in Community Development. Staff is recommending that $33,000 from Low and Moderate Income Housing and HOME funds be included in the Capital Improvement Program in addition to the over $10 million program which was presented earlier. Secondly, there has been an issue regarding creating separate offices for Council. Staff has given some alternatives and suggest that Council give staff some direction in this matter. Thirdly, there is the overall Capital Improvement program and what Council desires are regarding this. Councilman Alevy stated that it would be nice to have separate offices. He personally was not there enough to justify the expenditure in a very tight fiscal time. He felt this could be looked at in another year and should be deferred. As far as the legislative building, he asked if there was a way that the space could be used as it was now on an interim basis. Deputy City Manager Thomson replied that it could be used, but it would not be very satisfactory for the BECCA program. In regard to the funding of this from the Low and Moderate Income Housing fund and the HOME funds, it would not have an impact on the general fund activities. It could be done and if it was Council's direction, staff would make it work as best as they can. Councilman Alevy stated he would be in favor of the alterations to the legislative building but asked that we defer activity on the Council offices to another year. MSUC (Rindoneatorton) to carry over the CIP Budget. CITY ATTORNEY'S BUDGET City Manager Goss stated staff was recommending about $100,000 in legal fees be taken each from Re, development and the City Attomey's office, but on the other hand there needs to be a change. The City Attorney had indicated a commitment to draft some policy and administrative strategies to increase the review of city-wide legal bills for effective review and monitoring on a cost benefit basis of the delivery of all our legal services and strategies. Mayor Horton asked what was the total that we spent for additional legal services. Budget Manager Herring responded that in the current year we budgeted $300,000, but she did not have the figure in front of her as to what was spent. Mayor Horton asked if the attorney had a full-time position currently budgeted that was being filled currently in a part-time capacity. Minutes June 14, 1995 Page 6 City Attorney Boogaard replied yes. He was trying to meet the demand, which is still a four person or greater, with outside legal services. This is more costly on an hourly basis but ends up being less costly, because he is only bringing in an outside attorney to work on a temporary basis for one day a week. So even though their rate may be twice on an hourly basis from a staff person's rate because of the overhead, you have a hard time finding competent help who is willing to work only three days a week. He is going to the attorney pool which already has existing overhead and he has been able to contract at a very low rate with an attorney who has had a long history in municipal services for about a Deputy City Attorney compensation rate. Mayor Horton stated that she has been pushing to hire an additional attorney for a long time and not contracting out the time. With additional attorneys, we will be able to reduce the outside legal assistance to $200,000 this year. MS Otorton/Moot) to conceptually approve the City Attorney's budget. Councilman Moot asked how we budgeted the contingencies for potential legal matters in which the City is a defendant. City Attorney Boogaard replied that if it is 'a garden variety' torte type cases where it follows the tone claim procedure those are budgeted through the torte and insurance fund. The $200,000 is designed to handle specialty litigation that comes up during the year. Councilman Moot asked what about wrongful termination and those types of contingencies. City Attorney Boogaard stated they would be funded out of the $200,000 fee. Some litigation is also funded out of legal services in the Redevelopment Agency's budget. Budget Manager Herring stated that the public liability and propen>' damage budget was listed on page 143 under account 5233 for $602,650. Councilman Rindone asked that a history record for this over the last three to five years be provided to Council at a later date. Councilman Moot asked if we had a non-liability torte liability claim that exceeds the amount budgeted within the City Attorney's budget, does it have to come back to Council for appropriation on a 4/51h vote. City Attorney Boogaard replied yes. The $200,000 figure was designed to allow Council to approve settlement basically with 3/51h vote. VOTE ON MOTION. Carried unanimously 5-0. MSUC (RindonefHorton) to request the City Attorney to prepare a report back to the City Council as a docketed item within 90 days as to the feasibility of an additional attorney in the office in relationship to the workload and the contingencies. COI~gdUNITY DEVELOPMENT BUDGET City Manager Goss stated that this department deals with redevelopment, assisted housing, block grant funding, and economic development. In terms of budgeting, Community Development is treated as a separate department within the operations and gets its support from the Redevelopment Agency. However, under consideration is just the Community Development Department. He called attention that the Economic Development Comrmssion's recommendation of some additional funding for the South County Economic Development Commission as well as the San Diego Economic Commission. Originally, staff recommended that we not do that but keep our limited funds Minutes June 14, 1995 Page 7 in Chula Vista. However, subsequently he has received a memo from the Economic Development Manager to give consideration to participation and representation with the San Diego Economic Development Commission and indicated a number of areas where they could be beneficial to us. They would be willing, and we would require them, if we did this, to measure and report on specific benefits that they would accomplish for us such as plants that have been referred to Chula Vista, clients shown Chula Vista sites, inclusion of Chula Vista marketing materials' related to various projects and activities as part of their local outreach program. Staff was not as supportive of South County Economic Development Commission, because. they felt our resources were limited. It was also brought to our attention by the Mayor that in connection with our BECCA program, there may be more of an opportunity to promote Chula Vista to its economic benefit. The Economic Development Manager just returned from a meeting indicating that we have been invited to be one of four or five communities throughout the United States to participate as founders of the environmental technology leadership challenge along with American companies such as Armond Hammer; and we would join Orlando, Baltimore, Charlottesville, and Chattanooga in taking a leadership role in promoting environmental technology. We feel there may be a need to expand the travel budget in order to promote Chula Vista Border Environmental Commerce Alliance. Mayor Horton stated not only for BECCA, but also for the Hitech/Biotech Zone. There will be opportunities throughout the year to attend different conventions for this industry. She felt it was very important to include funding tbr travel so that the Manager and a Councilmember could attend these conventions. Councilman Rindone enthusiastically supported the recommendation but asked that it be expanded to include the hydrogen fuel cell project for the utilization of some travel funds. Councilman Moot asked what was the logic for supporting the San Diego Economic Development Corporation over the South San Diego Economic Development Council. As a member of the Council, he serves on the South County EDC, The San Diego Economic Development Corporation sends a member to participate on the Sbuth County EDC meeting, so we do get input through them. Community Development Director Salomone responded that the San Diego EDC happens to be a more wide spread network, deals with national and international events, and has brought people to us on a number of occasions, has helped a broker or two play an conciliatory role with those companies. They have been established a number of years, they have networks, resources, and connections that are often the key point of contact in the region, and they have directed people to us. Since our resources were stretch so thin, they made the choice for the more established, long term, larger organization. Jane Signaio-Cox, 701 B Street, San Diego, 92101, Senior Vice President of the San Diego Economic Development Corporation. She asked Council's support of the Chula Vista Economic Development Commission's recommendation to fund them the $10,000. This will help enhance their economic development activities for FY 95/96. Councilman Moot asked if there was anyone from Chula Vista who sits on the Economic Development Corporation's Board. Ms. Cox replied no. Councilman Moot asked how people from Chula Vista learned of their activities and what opportunities through their Economic Development Corporation would be available to Chula Vista. Ms. Cox responded that one of the important groups in Chula Vista that they worked with was a member of the group was EastLake. There are other members, but she apologized that she did not have a list with her. There are monthly newsletters which go out to the general public. Minutes June 14, 1995 Page 8 Councilman Moot stated that if we are going to fund them, then we should be allowed to have active participation with the group and have some member involved. Councilman Alevy asked if they could be a conduit for us to attract more businesses to Chula Vista, not just to the general San Diego region. Ms. Cox replied absolutely. If we hear from a company who has a specific requirement, they will look at what is available. Depending on the time frame, they do site searches to all the different community groups, cities that have economic development organization, major brokers and major developers to ask what is available that will fit that particular criteria. They provide all that material to the client. Secondly, they produce an industrial space guide in which they include all available space throughout the County which is used as a resource for potential locations. Councilman Rindone asked if she had bylaws or limitations on how many members can be on your board of directors. Ms. Cox replied that at the present time there is a set number of twenty two. The current requirements are that three are recommended by the San Diego City, one by the Port, and one by the County. The people they are recommending need to be people of good standing of the Economic Development Corporation, and the others are selected on the basis of targeted industries and represent various geographical areas. Harry Brattin, 1200 A Street, National City, 91950, current President of the South County Economic Development Council. They asked for Council's support. Their major role is that of coordinating a team of economic development which has its focus on the South County area only. Councilman Moot felt this should be carried over; it was worthy of a second look. We have a seat at the table at "'- one of these organizations. We really need to think through the item a little more. He was always willing to support the person who was willing to invite you to the table. Councilman Padilia expressed that we need to take a closer look to see what our return is on this type of investment is before we give $10,000 toward it. Mayor Horton stated she would vote for this, but she was supportive of spending the funds for both organizations because she felt in the long run it will benefit the city many times greater than the expenditure. MSUC (Moot/Padilla) to carryover this item. MSUC (HortonlMoot) to carry over the travel item in all three areas (the San Diego EDC, the South County EDC, and the hydrogen fuel cell program). MSUC (Horton/Padilla) to conceptually approve the remainder of the Community Development budget. * * * Mayor Horton left at 7:55 p.m. * * * DEBT SERVICE City Manager Goss stated that this had been briefly covered previously. This budget is increasing from $10.1 million to $15.3 million. A large part of the increase is due primarily to a large payment by property owners in Assessment District 90-3 causing a one-time increase in debt service to call the related bonds. Also, this is the first full year of debt service payments on the pension obligation bonds that were issued in 1994. Minutes June 14, 1995 Page 9 Councilman Padilia asked if the RDA financing was typically available to both private and public entities that are within the Redevelopmeat Agency to take advantage of funding to achieve improvements. He as curious when he saw that we are serving debt on the construction of the superior court at South Bay which he knew was a County funded operation and a State mandated operation. Community Development Director Salomone responded yes. Under state law, the Agency has the power to directly participate in and give financing to private developments. Councilman Rindone felt it was important to note what was causing an increase in a lot of the proposed fees for this year and what is happening to the quality of life in Chula Vista. He stated that the debt service was the amount of money that the City of Chula Vista has to pay on previous obligations that this Council and previous Councils have made for projects in the redevelopment areas throughout Chula Vista and for services for the City that is funded through the general fund. The increase this year of the debt service that is having to be paid by the general fund is an increase in excess 51.6%. Funds which were previous Redevelopment Agency debts are now in the general fund. Annually, starting last year, there was debts in excess of $3.5 trollion greater than aggregate revenues from the five Redevelopment Agency programs. Of that $3.5 million, an excess of $2 million is now being transferred to the general fund. This is the basis for the major changes that are occurring because the general fund is being asked to help address those debts until we get some major projects completed. Fees for swimming, parking, parks and recreation, and for other services that are being addressed are being added to help cover that shortfall. This is a heavy weight being paid on the smaller tax payer who was not responsible for causing the debt. It is a responsibility of this Council to: (1) understand the debt, (2) understand the magnitude, and (3) develop a plan. He encouraged the Council that if we did nothing else for this coming fiscal year 95/96, that we address a long-term plan, because selling off property and assets to assist the Re, development Agency is only a short-term benefit. Coun~:ilman Moot stated that it has been indicated that the two biggest items in the debt service were Assessment District 90-3, but it was indicated as a one-time increase in debt service. For this fiscal year that is a $4,380,000 obligation. Finance Director Powell stated that on page 150, it indicates that the increase this year of $2.2 million over last year was basically due to a payoff from EastLake. They sold two major parcels and as part of that sale, they committed to pay off assessments against that property. Under the legal terms of the bond indenture, we must call the bonds at the next call date. Therefore, the debt service will be higher this year when we call the bonds and use those proceeds to pay off those bonds. Councilman Moot asked about next year; the one time is the part that confused him. Will the obligation be the same or less next year. Finance Director Powell replied that he could not answer that question unless he knew if EastLake was going to make any major property sales. This debt payment is funded directly by the developer when they sell these properties. This does not come out of City funds; it is an Assessment District. What they have done is sell the properties, take proceeds and pay off these assessments against these properties. We must then take the proceeds and pay off the bonds that were issued against these properties. If they do not sell any more properties or major sales that require payoff of the assessments, this debt payment will reduce back to its normal level last year. Councilman Moot stated that when we are looking at the increase to 51.6%, is that $4 million included in that increase. Finnee Director Powell replied it was included in the increase. It will not be there next year unless something unusual happens again such as these major sales and the need to pay off bonds. Minutes June 14, 1995 Page 10 Councilman Moot asked about the pension obligation bonds which are approximately $1.29 million. Is this an on- going debt payment that rolls over each year and what created this obligation. Finance Director Powell replied that it was an ongoing obligation for a number of years. This is fully offset, and there are actually savings over and above this amount to the general fund by issuing these bonds. What the City did in this ease, was there was an unfunded liability with PERS for our retirement system. The City chose to finance that debt by issuing bonds. This debt payment is then substituted for our payment to the PERS system for the unfunded liability. This is the difference between actuarial assumptions that are made in which our rates are based on and actual experience when we are talking about mortality rates, employment levels, salary increases, etc. and the liability that occurs when those actuarial rates are different from actual experience. We are asked to fund that over a number of years and that becomes what the retirement folks as an 'unfunded liability' that we pay on at a certain interest rate to PERS. Councilman Rindone stated that when we reduce the retirement age then there is a contribution toward that unfunded debt that is accumulated and that is part of this unfunded debt. Finance Director Powell stated that he would assume that if you reduced the retirement age that would increase your unfunded liability. Councilman Rindone felt that it was important that the debt service section contain the aggregate of the general fund and the Re, development Agency debt service. He requested that the format for next year for this section be broken down into those subareas and then the aggregate for purpose of analysis of this council then be made. Finance Director Powell stated that the breakdown is here: the first seven funds listed are all general fund and the last three funds (982,983,984) are all redevelopment. Councilman Rindone stated that the Redevelopment Agency debt obligation that is the aggregate of the first three of the general fund plus the three of the redevelopment agency. You don't clearly see that unless you extrapolate those and pull them together. He did not feel that Council should have to do that, he felt that should be done by staff. Councilman Moot asked where the annual payment to PERS was reflected in the budget and do we know what the aggregate payment is. Budget Manager Herring replied that it can be found in each DepartmenUs budget under the account 5141 for retirement payments. She did not have the figure for the aggregate payments. City Manager Goss stated that when we found out from PERS what the actual rate will be in the coming year, the budget is fairly well developed. Sometimes we will put an adjustment in non-departmental as we did this year which was actually a minus amount of about $400,000. As the final budget is put together, that gets redistributed within all the departments. Councilman Moot asked if someone could total for him at the next budget hearing what the total payments are to PERS including both the debt service payment and what we pay within each department towards retirement on an annual basis. Councilman Rindone also requested that be included in backup information on the item that we will have to reconsider within the negotiation units. MSC (Moot/Rindone) to conceptually approve the Debt Service budget but would like to see what the total payments are to PERS including the Debt Service payment and what we pay within each department on an annual basis. Motion approved 4-0-1 (Horton absent) Minutes June 14, 1995 Page 11 REDEVELOPMIENT AGENCY City Manager Goss stated that this budget is usually presented at a later time and would not be a part of the general operations. But because of the circumstances which we are facing and dealing with over the past year, it has become clear that the Re, development Agency and the general operations have become linked. * * * Mayor Horton returned at 8:25 p.m. * * * Councilman Rindone inquired which property sales were in which year. Community Development Director Salomone responded that in the current year (94/95) the sale of the South Bay Chevrolet site which is in escrow; the sale of Marina View Park which will close in approximately 45 days; and the El Dorado building. All three will close after July 1. Councilman Rindone stated that staff said it would be in 45 days; there are not 45 days left in this year. Finance Director Powell stated that generally we are allowed to accrue revenue that is available within 60 days after the close of the fiscal year if there are indications that the revenues are fixed and certain. So in these instances, if something is approved and goes forward, the agreement is signed, and we expect the revenues within sixty days, then this type of revenue which we accrue and book in this fiscal year would be reflected in the fund balance this year. Councilman Pdndone requested a copy of the chart entitled, "Project Ending Fund Balances', ;~ith an explanation as to what it is and also the development of a chart that is exclusive of land sales along with an explanation. MSUC (PadiilafRindone) to carry this item over. PARKS AND RECREATION City Manager Goss stated that a number of supplemental budget memos have been given to Council. The two major ones are: No. 10 on the Youth Action Program and No. 15 Additional Information on Salary for Part-time Recreation Staff. Mr. Goss stated that compared to National City, San Diego, El Cajon, Escondido, and Oceanside that we are the highest hourly rate for Recreation Leader and in the middle for Recreation Leader and Recreation Specialist. He stated that an option which was explored at the budget level was the 'Y" rate technique where the new rates would be used for new employees only. Other departments achieved their cuts by cutting positions; parks and recreation staff proposed to achieve this by preserving jobs but to cut the salaries, especially the Aides, since they were high within the County. There was also a feeling that the quality of staff would not be affected because we just hired 30-40 new people for the summer out of a pool of over 300 applicants. It was also felt that if people found a job that was more appealing financially, there were others that would gladly fill those positions. Also, in the Library we have part time positions whose entry level positions which is mostly college level people whereas Aides are both high school and college, their level is about $.63 an hour lower than the Recreation Aides. So both internally as well as externally, it would appear that the salary rate is high in the City. There is an issue of fees and swim passes, there are about five or six cities which have no passes at all. Those that have annual passes that the range for adults is $12 to $25 per month. Ours average at $3.33 a month. There have been some valid points made in connection with the fee issue, and so the Department has been charged to come back with some alternate proposals. Councilman Alevy wanted to go on the record to reverse his statement about endorsing and supporting fees for youth. For the amount of money we are talking about, he felt we could be more creative. He knows the money has to come from somewhere, but he felt it needed to come from somewhere else. Minutes June 14, 1995 Page 12 Mayor Horton opened the meeting for public input. Those addressing Council were: Russ Hall, 235 K Street, 91910, representing the Parks and Recreation Commission. He recommended that this entire budget be sent back to staff and be redone and be based on a performance based budget. Lets give the Parks and Recreation Director a fixed budget and allow his staff to give this City the best parks and recreation plan based on a realistic plan. Councilman Rindone stated he would not support this because everything is not equal and fair. The fundamental charge which the Council has is to look at the quality of life in the City and to examine the priories which are most meaningful. The core services are defined as police and fire are of highest priority and get first attention. Second to that is proactive activities such as the latch key and the after school recreation programs. Therefore, if the City is to maintain the quality of life, then he is not about to accept an equal cut among the park and recreation, especially the salaried employees, in one of the most critical services of all because they are helping the youth. Kay Dennison, 659 Jefferson, 91910. She addressed the issue of needing a balance and carefully determine the fairness level for senior citizens and youth. She felt that we needed to keep the Senior Supervisor position so the senior citizens will have a place at the table. She felt that all age groups were valuable and needed a fair share of the city programs and services. Ralph Munoz, 591 Pineridge Court, 91910, representing the Chula Vista Youth Sports Council and the Bonita Valley Girls Softball. He urged Council's support for no fee increases or surcharges for the youth sports leagues in the City. Margaret J. Helton, 162 Mankato Street, 91910, representing the Parks and Recreation Commission. She did not agree with Chairman Hall when he said to send the budget back with a fixed sum. If that fixed sum includes the things which Mr. Goss is already fixing to do then she disagreed. She felt that the staff and commission had both worked with the budget. It was very difficult to make the suggestions they did to send to Council. Ms. Helton further stated that the proposal suggested reducing the mid-management position which addresses and oversees all senior programs. She stated that in Chula Vista there are 21,234 persons over the age of 60. The number under the poverty line in Chula Vista is 15,767. These figures indicate that this is no time to get rid of a person who is imminently qualified to handle programs and needs for the seniors. We are also facing the loss of the Human Services Coordinator which has done a good job for the City in bringing in money for programs. She stated that the majority of our programs serve the youth. This is important; but taking away from 17.8% of the population' the one person who knows how to serve the seniors best was terrible. She felt we needed both the positions; one to assure we have the proper services and the other to bring in special programs. Bob Aguilar, 685 Port Chelsea, 91913, representing Youth Sports Council and Bonita Valley Girls Softball. He spoke against the fee assessment. He had two main concerns: (1) as a member of the Youth Sports Council, he felt that if Parks and Recreation was going to do something which was going to impact the youth, they should at least let them know what was being proposed to City Council. This was not done. (2) The impact on the youth is serious and real. If you shut down any league, the youth will have idle time on their hands. It is very real what happens when youth have idle time. Mayor Hotton stated that in the future, it would be beneficial since they are an organization set up for a purpose when we know we are heading toward a real tight budget year to explain the situation so they could also have an opportunity to review the situation and make recommendations to the department. Councilman Moot requested that the item be carried over since it was obvious that there were a lot of decisions to be made. He would like to hear what the speakers have to say so they won't have to come back, but the budget needs to be reworked since there is too much dissatisfaction with the way it is. Minutes June 14, 1995 Page 13 Mayor Horton asked if Council concurred with Mr.' Moot. She felt Council should express some of their concerns to staff so they can be prepared at the next meeting to address those concerns. She stated that she would not be in support of any increase for the youth sports activities to raise their fee. Councilman Moot felt that the $5,000 that would be generated by charging the youth leagues was not worth the ill will that it was generating. He did not feel it was a cost effective proposal for the City. He did feel that we ne~led to look at the gross differential between what we are paying part-time employees in this department and what is being paid in the private sector for the same service. He did not believe that we should cut anybody's salary; however, he did feel it was necessary to do something to bring these salaries in line for what we are charging the private sector for similar services. We need to look at a freeze in terms of a raise for a period of time, and he would support 'Y rating' that as these positions turn over, then new people coming in at the proposed new salary structures. Anytime government pays substantially more for the same service that is being provided in the private sector, people can legitimately question the wisdom and intelligence of their elected leaders. Councilman Rindone felt that the position which Mr. Moot advocated was one that philosophically elected officials would have no problem with. The problem is in the fairness. He can give half a dozen other categories of employees in this City who make salaries far above the market value for comparable positions in other cities. He did not want to selectively pick on the part timers and the lowest paid individuals to be the scapegoat for this. He felt we needed to be consistent. ***** City Manager Goss stated staff would like to know if Council would want another workshop before consideration of adoption of the final budget. CounCilman Rindone asked if the June 20th agenda was full or could we have a portion of that night to consider the budget items. Assistant City Manager Sid Morris stated that the 20th agenda was a fairly significant agenda, but we have identified a number of issues which could be carried forth. Councilman Rindone felt that staff could bring forth next Tuesday the items which were time sensitive and have the major portion to finish the workshop. Mayor Horton asked if we could meet on the 271h at 4:00 p.m. Council concurred. Councilman Padilia stated he would be in favor of paring down the Council agenda on the 20th and carry as many of those items forward because on the 271h we will be considering the final adoption of the budget. He felt we should also schedule a budget workshop on the 21st so we have the flexibility and time slots available. If we decide on the 20th that we do not need the 21st, then we can cancel it. MSUC (PadillafRindone) that the meeting schedule for June 20th contain essential business items, and the balance of the time be for a budget workshop. In addition, schedule another budget workshop for June 21 at 6:00 p.m., and the June 27 meeting be scheduled for 4:00 p.m. Dorothea Grindie, 600 Anita Street,//22, 91911, representing the Commission on Aging. She was deeply concerned about the cut in the staff position in the Parks and Recreation budget. She felt we should be serving all ages with quality programs. She felt this would be a step backwards to eliminate that staff position. She asked Council to reconsider and on behalf of all seniors in Chula Vista, she asked Council to reconsider that staff position. Minutes June 14, 1995 Page 14 Manuel M. Martinez, 347 Monteelm Street, 91911, representing Parkview Little League. He thanked Council for -"-'- ~ their position regarding the fees. He asked if he needed to come back next to make certain the fees were not a part of the budget. All youth sports teams are run by volunteers. Leticia V. Newton, 2442 Manzana Way, San Diego, 92139. Was not present when name was called. Karen Walden, 362 Delmar Avenue, 91910, Parks and Recreation staff. She spoke against the proposed pay cuts. Diana Ross, 152 Garrett Avenue, No. 22, 91910, Parks and Recreation staff. She spoke against the proposed pay cuts. Tisha Tumangan, 65 East Naples, 91911, Parks and Recreation staff. Was not present when name was called. Mayor HotIon asked staff to address the item regarding the elimination of a staff person. City Manager Goss stated that he thought what they were referring to was in Supplemental No. 18. There are two parts: (1) phase 1 potential revenue enhancement and expenditure cuts, and (2) on page 4 under Table 2, less desirable than the expenditure cuts are the following: #3 elimination of mid-management position in parks and recreation with an estimated savings of $51,000. Jeremy Jones, 8872 Lea Avenue, Spring Valley, 91977, Parks and Recreation staff. He spoke against the proposed pay cuts. Ken Newton, 2442 Manzana, San Diego, Parks and Recreation staff. He spoke against the proposed pay cuts. Mayor Hot'ton stated she would like to continue this item to the meeting of June 20th. MS (Rindone/Padilla) to direct staff not to bring back to the Council the $72,000 in cuts of the three positions in the Parks and Recreation Department, but to bring back to the Council the replacement of $72,000 of funding and then deal with the balance of those issues when the rest of the Department is brought back. Councilman Moot would only support the motion on the condition that what is brought back is an alternative proposal where we look at temporarily freezing the positions and look at bringing new employees in at lower levels so we begin to move closer to parity with the same services being provided in the private sector. Councilman Padilla felt that philosophically Mr. Moot's position was great, but reality is that we also have waste, excess, problems, and not clear priorities in government at all levels. If we were to apply that standard across the board including the Council and all management and all other areas, then he would say okay. The reality is this isn't being done. There are things being done that can be addressed in a broader sense that are unnecessary. There are people being paid more than the going market rate. In some eeses that is the right thing to do. This is not an issue unless we are going to move everything and everybody and talk about all the areas where we could cut. He expressed that we could: (1) do the budget differently in future years and something to be addressed later on and (2) cut a lot more before we decide to start making cuts in the pay rates and personnel, especially in a critical area. He did not feel it necessary to meet our obligations in this fiscal year to consider a slashing or reducing the wages of these people. If we have exhausted everything else, then you start doing that. Councilman Rindone felt that Councilman Moot was correct in his statement to right size government. Philosophically he agrees with this. He did not feel that you single out one particular group or part-time group. If Mr. Moot is willing to support this motion, then he was willing to support a subsequent motion that this will be done across the beard for future budgets. Councilman Moot agreed that it had to be done across the board. --.---~ Minutes June 14, 1995 Page 15 Mayor Horton stated she was not willing to do it across the board tonight, and she was not going to vote for the motion on the floor. She suggested that the motion be bifurcated. VOTE ON BIFURCATED MOTION: To freeze the part-time pay as it is currently for all three positions. Motion approved 5-0. VOTE ON SECOND PART OF BIFURCATED MOTION: To bring back to the Council the replacement of the $72,000. Motion approved 5-0. MSC {A!evy/Rindone) to not raise League fees either at adult or child level. Mayor Horton stated she did want to raise the child's Leagues, but would like to keep the adults. She requested this be carried over. VOTE ON BIFURCATED MOTION: To not raise the children's League fees. Motion carried unanimously VOTE ON SECOND HALF OF BIFURCATED MOTION: To carry over consideration of the adult fees. Motion carried 4-1 (Rindone no). ADJOURNMENT Mayor Horton adjourned the meeting at 10:05 p.m. Respectfully submitted, Beverly A. Authelet, CMC/AAE City Clerk