REGULAR ADJOURNED MEETING MINUTES
DATE OF MEETING: July 28, 2004
TIME OF MEETING: 7:30 A.M.
PLACE OF MEETING: RED BLUFF COUNCIL CHAMBERS, CITY HALL
The agenda for this meeting was posted pursuant to Resolution No. 28-1995
Councilmembers Present: Forrest Flynn, Mayor
Larry Stevens Mayor Pro Tem
Councilmembers Absent: None
Staff Present: Susan Price, City Manager
Gary Antone, Director of Public Works
Charlie Mullen, Planning Director
Margaret Van Warmerdam, Director of Finance
Tessa Pritchard, Human Resources Director
Gerry Grey, Division Chief
Mike Damon, Fire Chief
Al Shamblin, Police Chief
Robb Gibbs, Director of Parks and Recreation
J D Ellison Sr., Building Director/Official
Venita Philbrick, City Treasurer
Tina Lee, Fire Marshal
Sherryl Arend, Fire Administrative Assistant
Debbie Carlisi, Recreation Supervisor
Mayor Flynn called the meeting to order at 7:30 a.m.
RESOLUTIONS NO. 37-2004, A RESOLUTION FIXING THE AMOUNT OF REVENUE FROM PROPERTY TAXES NECESSARY TO SUPPORT THE RED BLUFF CITY DEPARTMENTS FOR THE 2004/2005 FISCAL YEAR AND 38-2004 A RESOLUTION FIXING THE RATE OF TAXES NECESSARY TO SUPPORT THE RED BLUFF CITY DEPARTMENTS FOR THE 2004/2005 FISCAL YEAR.
M/S/C Avilla, Houghton to adopt Resolutions No. 37-2004 and 38-2004.
AYES: Councilmembers: Avilla, Flynn, Frey, Houghton and Stevens
ABSENT OR NOT VOTING: NONE
PRESENTATION, REVIEW AND POSSIBLE ADOPTION OF 2004/2005 PRELIMINARY BUDGET
City Manager Susan Price and Finance Director Margaret VanWarmerdam gave a short power point presentation of the budget context. At this time the local economic outlook is healthy, but uncertainty of the State of California current and future budgets continues to impact local government. At this time the City is facing a combination of State government raid of local revenues and increases in standard business costs, such as health insurance, property and liability insurance and workers compensation.
The significant issues the Preliminary Budget faces are:
ü A $158,741 reduction in the General Fund due to state budget crisis and Governor’s budget
ü An increase in health insurance of 22% or $81,180
ü An increase in property, liability, and bond insurance of 12.54% or $47,047
ü An increase in police and fire employer paid PERS of 10.573% or $209,806
ü An increase in workers compensation of 50% or $99,697
ü A deficit in Streets/Transportation of $102,824 due to increased state raid of transportation monies
ü A $250,000 WWTP loan repayment reserve to be funded in the Final Budget
Councilmember Avilla requested clarification on the TOT tax of $400,000 and questioned if this was based on 10% and how much additional revenue would be generated if the voters approve the TOT increase.
Ms. VanWarmerdam stated that it was and that the TOT tax total at this time is $355,000 and staff expects it to go over the $400,000 budgeted.
Ms. Price stated that the increase in TOT tax revenue if the measure passes would amount to approximately $90,000, of which 16% would go to the Chamber of Commerce.
Some of the items affecting the Police Department budget are:
ü $10,000 increase in the City share of County Animal Control Facility
ü 39% reduction in LLEBG grant funds for overtime
ü $145,287 1st year OTS grant – traffic overtime, other activities
ü $24,000 for Special Events overtime
ü $16,126 Seat Belt Grant – enforcement overtime
ü Expiration of School Resource Officer grant (High School) in March 2005 – General Fund will need to backfill costs
ü $45,035 salaries decrease for 6 months unfilled Lieutenant position
ü $42,748 salaries decrease for 1 year unfilled 8th Dispatcher position
ü $17,000 reimbursement for Computer Crimes Task Force
ü $141,299 increase in employer paid PERS (not related to 3% at 50 which will take effect on July 1, 2005)
Mayor Pro Tem Stevens questioned the Record Searchlight article that stated that Tehama County had received $500,000 COPS money.
Ms. Price stated that the COPS money would be split $100,000 to Corning, Red Bluff, Tehama (which the County keeps) and the balance to the County Sheriffs Office.
Councilmember Avilla requested clarification on the School Resource Officer funding.
Al Shamblin, Police Chief, explained that the grant was a 4-year grant that was funded for the first 3 years and the City would fund the last year.
Ms. Price added that the high school has a cash match which goes through March 2005 and that staff will request that the high school share to cost for the final year. The City would not be able to obtain another grant unless a 3rd Officer was put in the school.
Councilmember Frey questioned Chief Shamblin what his first priority would be if only allowed one item in the budget.
Chief Shamblin stated that it would be a new facility and that they were just trying to maintain the current level of staffing.
Mayor Pro Tem Stevens questioned if the vehicles taken out of service in the Police Department would be able to be used elsewhere in the City.
Ms. VanWarmerdam stated that staff has the mechanics look at the vehicles rotated out and have them evaluate to see if the vehicle is viable enough to keep for use in another department.
There was discussion by the City Council and staff regarding the overtime and that if the City wanted to keep the special events it needed to support by budgeting for this overtime.
Mayor Flynn requested clarification on the PERS increase.
Tessa Pritchard, Human Resources Director, explained that for the last 5 years the City has been fully funded in PERS, that in fact 2 years ago PERS told the City that it would be funded for 19 years and this has changed in a matter of 2 years and that this ended in July. The biggest factor contributing to this increase was the investments made in the stock market by PERS. Two factors affecting the PERS increase are the 3% at 50, which will in turn spur a lot of retirements.
Councilmember Avilla questioned the estimated actual and if this was the amount of money that has been spent to date.
Ms. VanWarmerdam stated that the amount shown was as of June 30th and that the books would be held open for 60-90 days so that anything related to 03/04 has been accounted for and input. This would be Sales Tax, Motor Vehicle tax that comes a month in arrears.
Councilmember Avilla questioned if the Work Comp costs were going to come back in line at some point.
Ms. Pritchard stated that the City is not covered by State Comp, but is basically self-insured. This allows for lower rates than State Comp, but those Cities in the JPA and the number of claims filed affects the rates in the JPA.
Chief Shamblin stated that the 8th Dispatcher position would not be filled at this time and that hopefully once the 7th Dispatcher is in place the overtime will decrease. Dispatcher is the hardest position to recruit for at this time. He further stated that for a short time he and Lt. Nanfito would be splitting the duties of the vacant Police Captain position.
Changes affecting the Building Department are:
ü Additional full-time Building Inspector
ü Reduction of temporary employees by $9,000
ü No General Fund transfer in needed
ü Increased Building Activity
JD Ellison, Sr, Building Director/Official gave a brief update on the Code Enforcement action on property located on Wernmark. He stated that a Realtor had made a cash offer on the home and that the property owner has said that he would accept if it were presented to him. Auto Zone plans have been received for the Riverside Plaza and that plans for Wendy’s Del Taco and Applebee’s will be coming in within the next week.
Mayor Flynn stated that the Building Department was pretty much self-sufficient at this time.
Ms. Price stated that the goal is to work toward self-maintaining of this department.
Mr. Ellison stated that one wish for his department would be finding out how to recoup expenses for a Code Enforcement Officer and that the department would be working with the Cities of San Jose and Sacramento on ways that the department can recoup those costs associated with Code Enforcement.
Councilmember Avilla questioned Mr. Ellison is he was being conservative in his numbers.
Mr. Ellison stated that he had reviewed the growth the City was currently having, but can see the commercial growth leveling off and the residential growth would now pickup and catch up with the Commercial growth. There are currently 157 homes submitted and that in a year to year a half you anticipate that Commercial growth would pickup again.
There was a discuss on the plan check fees and that currently the Fire Department receives a portion of the fees collected and that staff would be reviewing the charges for current services. The City should not be giving staff time to developers.
The major changes to the Planning Department are:
ü A new Planning Director
ü Sphere of Influence Review - $35,000
ü Increased development activity
The discussion for this department was the goal for recovering staff time through fees.
Charlie Mullen, Planning Director stated that they would provide some free services, but large projects recover time through fees. He stated that he wants the department to be user friendly.
Councilmember Frey questioned Mr. Mullen on what his one priority would be for his wish list.
Mr. Mullen stated that he would like to bring that back next year, so that he may have time to evaluate the department. One of the biggest projects they would be working on would be the update of the General Plan and that he had just started meeting with the County of Tehama on the Sphere of Influence.
Mayor Flynn called a recess at 8:55 a.m.
Mayor Flynn reconvened the meeting at 9:00 a.m.
The major changes to the Fire Department budget are:
ü $92,070 Fire grant for helmets, turnouts, breathing apparatus
ü $10,230 Cash Match from Impact Fees
ü $68,000 Increase in employer paid PERS
ü $5,000 Decrease for Reserve volunteers
Fire Chief Mike Damon and Division Chief Gerry Gray gave a short power point presentation for 2003 showing the following number of calls:
48 Vegetation Fires
25 Vehicle Fires
31 Structure Fires
68 Injury Vehicle Accidents
1,534 Rescue & Medical Emergencies
7 Natural Events & Disasters
Their presentation showed that the number of medical emergencies continue to increase. Fire loss for the year was only $227,000, but the value of property saved by the Red Bluff Fire Department personnel was just over $3 million. Simultaneous calls continue to increase and place a strain on available resources with longer response times (5+ minutes) to southern city limits (south of Kimball Road). Fire Department personnel also participated in 768 business inspections in 2003.
Chief Damon stated that the concerns with the proposed budget is that the reserve personnel budget is proposed at $114,650 and the Reserve personnel enable the department to comply with the 2-in/2-out federal staffing mandate and allows to attack fires immediately upon arrival without waiting for additional personnel and units to arrive. Would like to see this account raised to $119,000. Another area of concern is that of the Capital Outlay Equipment Budget (31-540-100) which is proposed at $12,500. Would like to see this account increased to $33,000 to cover the cost of essential tools and equipment for continued operation. Another area of concern is the Equipment Replacement Fund and he was requesting direction from the City Council on whether or not additional monies should be placed in this fund, which is currently at $145,488 and to purchase a combination fire engine to replace 27-year-old engine (E-2) that is currently in service the department would need $320,000. The prices on equipment are going up and it takes a year to receive once the engine is ordered. He would also like to see the addition of a Prevention Officer to assist with the Fire Marshal’s workload.
Mayor Pro Tem Stevens requested clarification on what items were cut from capital outlay.
Ms. Price stated that a washer/dryer, hose replace and computers had been cut from capital outlay.
Mayor Flynn questioned if money was being set aside for equipment replacement.
Chief Damon stated that in the past it had been, but nothing had been set aside the last two years.
Ms. Price stated that when additional funds are available they would be put toward capital outlay.
Councilmember Frey requested that Capital Outlay be revisited when Final Budget is brought back to the City Council.
Ms. Price stated that she anticipated that the Final Budget would be brought back to the City Council in October or November.
Councilmember Avilla questioned the life span of a fire engine.
Chief Damon stated that 20 years is the life span of an engine and that this engine wasn’t built to do what the department is currently using it for.
Councilmember Frey asked Chief Damon what his priority for the Department would be.
Chief Damon stated that a Fire Prevention Officer and money set aside for a engine would be his priorities.
Mayor Flynn stated that a Fire Prevention Officer had been in the background for several years.
Ms. Price stated that staffing level discussions would come back to the City Council and that the City cannot fund all the staffing levels that are needed.
Tessa Pritchard, Human Resources Director, stated that different departments have different staff needs and that there is a need for a bigger overall need for review and discussion. The overall needs of the City need to be looked at and discussed.
Ms. Price stated that if asked every department would say they need additional personnel and that staffing needs is a discussion the City Council needs to have in the future.
Mayor Pro Tem Stevens stated that he doesn’t deny that, but that it needs to be put on paper so that the City Council knows the staffing needs of all the departments.
Councilmember Houghton requested clarification on the Prevention Officer duties.
Chief Damon stated that this position would assist the Fire Marshal.
Mayor Flynn stated that he was concerned with the cut in the Volunteer personnel budget and stated that if you want to keep good people you need to utilize them.
Chief Damon stated that Red Bluff is one of the few communities in the state that has a viable volunteer program. The reserve program is very fragile and the reserves participate very much in daily activities.
Ms. Pritchard stated that the term “volunteer” is used, but they are reserves and are paid for their time.
Mayor Flynn stated that he would hate to see the department go “backwards”.
Ms. Price stated that Chiefs Damon and Grey have improved the department and that they run the department very professionally, unfortunately the City must look at the state budget. A revised Capital Improvement Program and a staffing discussion will be brought back to the City Council at a later date.
PARKS & RECREATION
The major changes to the budget for this department are:
ü Swimming pool funding restored from 2003/04
ü $3,000 leak detection study for the swimming pool
ü $112,908 Proposition 40 funds for projects
Rob Gibbs, Director of Parks and Recreation distributed a list of items for the City Council to keep in mind. These items for the Parks Department were a rest room at Dog Island Park ($20,000) and a vehicle ($18,000). For the Swimming pool additional funds for the month of June in Personnel Service and materials of $7,000. The department has not hired any full-time employees recently and any cuts to this department are revenue lost to the City. Currently in the process of the Fee Study so additional revenue may be seen. The department has received positive feedback from the community on its support of the pool etc.
Mayor Flynn questioned if Mr. Gibbs was anticipating adjusting fees.
Mr. Gibbs stated that he would recommend the ones he feels are necessary, but children and senior programs should be subsidized.
Councilmember Frey questioned what Mr. Gibbs his number one wish for the Parks Departments was.
Mr. Gibbs stated a vehicle as usually the Parks Department receives pickups used previously in other departments and for the pool he would like to look at the Part-time employees and give them increases as the department does more with Part-time and contractual employees and he would like to offer more. For the Community Center he would like to see an acoustical door for between the Tehama and Rose Rooms be budgeted.
Ms. Price stated that the City needs to go to the County of Tehama and request that they contribute to the center.
Mayor Pro Tem Stevens stated that although it’s not on the list the Community Center is the only place that could house a lot of people in an emergency and that there is a need for a large generator for the Community Center.
Mr. Gibbs stated that he had discussed this with Chief Damon. With regards to the swimming pool it will be closing earlier this year because schools are starting earlier, so this will help with the pool’s opening in June 2005, but he would like to see the pool stay open longer due to the hot weather.
Major changes in the budget are:
ü Salary adjustment for staff funded by grant.
ü No General Fund support needed as this program is fully funded by a grant.
No comments and/or discussion on this department.
Mayor changes in the budget are:
ü New Public Address system for $6,000
ü New annual audit
Councilmember Avilla questioned if the new public address system would replace the old system or is an addition.
Mr. Gibbs stated that the new sound system would be used just for public address speakers, etc. They will keep some of the system currently in place and use for weddings and parties. The new system will be used just for meetings, such as the Board of Supervisors and City Council.
Mayor Flynn questioned if recovery of the cost could be done by charging a fee to the renters that caused the damage.
Mr. Gibbs stated that they are looking at that, but unfortunately what happens is that the renter will say it wasn’t them that did the damage.
Mr. Gibbs stated that some of the projects the Community Center is looking at are:
ü Carpet Replacement (Offices = $6,562.52) and (Conference/Fireside Rooms = $5,922.20)
ü Replacement of vinyl tile (Gardenside, Kitchen, Restrooms & Stage = $10,00-15,000)
ü Roof Replacement = $50,000 – 55,000
ü Sound System = $6,000
ü Stage Black-out curtains = $3,000 – 5,000
ü Acoustical Room Divider = $10,000-40,000
Quotes for these items are being updated at this time.
Mayor Flynn questioned if the City could approach the County and ask the County to pay half.
Venita Philbrick questioned the prognosis of the County continuing their participation in funding the Center.
Ms. Price stated that it is very important that the City keep the County on board and will be working with Matt McGlynn to secure this support.
Mayor Flynn called a recess at 10:16 a.m. and reconvened the meeting at 10:35 a.m.
Councilmember Frey questioned the increase $13,000 to $22,000 in the Professional & Contractual Services Account.
Tessa Pritchard, Human Resources Director, stated that the increase was for a FLSA Audit, which will look at exempt and non-exempt positions. Exempt means that you look at certain requirements to meet exempt status. Concerned that some positions may not meet these requirements. The other increases are for Nicholas & Haeg for labor negotiations and Liebert and Cassidy for the City’s participation in that consortium.
Mayor Pro Tem Stevens stated that he had noticed that the web page had not been updated in a long time.
Ms. Pritchard stated that she would like to make downloadable applications and job descriptions available on the web page.
Margaret VanWarmerdam stated that the department will go right from the Preliminary Budget to the Audit. After that the department will start working on the User Fee Study. GASB 34 for streets and infrastructure and the Cost Allocation Plan. Ms. VanWarmerdam commended her staff for the job that they do. The one item on her wish list would be computers as some of the department’s computers have been just patched together.
Ms. Price stated that the computer list needs to be prioritized with whose computer is the oldest and then bring back with a listing for computer replacement program.
Funding ahs been restored to the Tuition and Training Fund.
Have been trying to allocate some of the City Manager’s salary out to grants and the Cost Allocation Plan will help allocate more of everyone’s time.
The City Clerk has requested a new lap top computer.
The City Attorney has been asked to segregate his billing so that the City can get reimbursed for his work on big projects.
Councilmember Avilla questioned if the City was asking the City Attorney to do more work.
Ms. Price stated that he would be used more due to the increased activity in the City.
Ms. Price stated that the City has done a number of things for TLDC with grants.
Venita Philbrick, City Treasurer, stated that she had suggested that this fund name be changed to Community Promotion/Economic Development.
Councilmember Frey requested and received clarification on the definition of Reserves and the difference between regular reserves and undesignated reserves.
Gary Antone, Public Works Director/City Engineer, thanked the City Council for taking the time to review the preliminary budget. His concerns for are that while one department may be going in the negative other departments are moving forward.
Ms. Price stated that because the State has been continually taking money from streets, there has been less money going into the Street Fund. The amount of allocations has not changed over the years, but with the update of cost allocations this will change.
Mr. Antone stated that was correct, a cost allocation plan must be in place. The most important issue that he is dealing with at this time is staffing. Currently there is one vacant position in the Engineering Department and in the Street Department there is also one vacant position, with one employee retiring, so there will be two positions in the Street Department that are vacant. The greatest need at this point is to fill the positions that we already have.
Ms. Price stated that her perspective is to not fill some positions and that some of the salaries in the Engineering Department have been covered by grant funding. She further stated that Mr. Antone had done an excellent job handling everything that has been given to him.
Mayor Flynn questioned if the City were to fall behind and not get the work done, would the City get additional grants.
Ms. Price stated that the infrastructure needs attention and that it is vital that we keep up.
Mr. Antone stated that he and the City Manager had discussed and will be looking to see how other cities are handling things.
Major items planned are:
ü $59,899 Police Front Counter Security Project
ü $20,535 City Hall HVAC
ü $35,000 Development Impact Fee Study
ü $20,436 Land Division Standards
ü $20,000 City Hall and Fire Department Carpet
ü $15,000 City Hall Parking Lots
ü $ 5,000 City Hall Remodel Front Counter
ü $ 4,000 City Hall locks
Mayor Pro Tem Stevens questioned the change in the locks at City Hall and stated that he prefers the idea of a card reader for the City Hall lock change. Questioned if the Police Department was included in this.
Ms. Price stated there would be a drop box location that the City Council could pickup their mail after hours from and that the City Council needs to decide how much liability they want to have.
Mr. Antone stated that these new locks would just be for City Hall. The parking lots at City Hall referred to are those planned for the old Jefferson House lot and that there would be 7 spaces created and the trash bins relocated.
Mr. Antone stated that things were working against the Streets Department as the stated provides a certain amount of funds and what has happened in this new cycle is that the State has further reduced STIP funding and anything left over from the previous cycle is what the City gets in the next cycle. The next two projects for STIP funding are the Walnut Street beautification project and the Transportation enhancement money, which can’t be used on streets, but can be used on enhancement of the streets, which will be used for the bike path.
M/S/C Stevens, Houghton to add $102,000 from the General Fund to the Transportation Fund.
AYES: Councilmembers: Avilla, Flynn, Frey, Houghton and Stevens
ABSENT OR NOT VOTING: None
Some of the major projects are:
ü $250,000 WWTP loan repayment reserve to be funded in Final Budget
ü $1,200,000 Forward Park & Lassen View Sewage Pump Stations, Force Mains, and Monroe Gravity Sewer Line Project
ü $100,000 Line Replacement Program (2 projects – Diamond Sewer Line replacement at Crystal Motel
ü $50,910 WWTP Small Blower installation
ü $15,829 Land Division Standards
ü $14,000 Airport Sewer Extension
ü $35,000 New Service Truck
ü $30,000 Video Acquisition System (CCTU)
Ms. Van Warmerdam stated that the transfer out for $250,000 was not done for the Forward Park/Lassen View Sewer Pump Stations Project and that the project should be split between Fund 45 and 46.
M/S/C Stevens, Houghton to split the Forward Park/Lassen View Sewer Pump Stations Project between Funds 45 and 46.
AYES: Councilmembers: Avilla, Flynn, Frey, Houghton and Stevens
ABSENT OR NOT VOTING: None
Major projects are:
ü $50,000 Waterline Street Repair
ü $50,000 Water Meter Program
ü #35,000 Water Rate Study
ü $9,593 Land Division Standards
ü $126,000 Property purchase
ü $21,000 Airport Water extension
Mr. Antone stated that there would be a reserve fund set aside of 108%.
Ms. Price stated that may not be able to do some projects, as the payment reserve is a priority.
Mayor Flynn stated that it was his understanding that this department could not show a profit.
Mr. Antone stated that was correct.
Councilmember Avilla questioned if the rates for water had increased.
Mr. Antone stated that they had not and that many customers do not relate that the bill they are receiving is for both water and sewer.
Ms. Price stated that a Water Rate Study is another study that needs to be done.
Mayor Pro Tem Stevens stated that the rate study would be done and then the rates would go up based on what it costs for maintaining the system flow.
Mr. Antone stated that the rate study would include every aspect of the department from pumping out of the ground and getting it to the customers, as well as the cost of materials and employees to maintain the service.
Major projects are:
ü $571,725 Airport Easements Project funded by a grant
ü $37,000 Building roof replacement (already approved by the City Council)
ü $73,500 Runway/Taxiway waterline
ü $10,000 Wetlands Study
ü $10,000 Hangar repair and maintenance
Mr. Antone stated that the City currently had a very good relationship with FAA so it has been successful in obtaining grants for the Airport.
Chief Damon questioned at what point the City would have to look at Fire protection at the Airport.
Mr. Antone stated that at this time he didn’t know, but he did know that although FAA likes to see Fire protection at airports they are currently satisfied that the Fire Department is just 5 minutes away.
Current grant projects:
ü Traffic Control Feasibility Study – CDBG
ü BTA Trails Grant
ü PATH Homeless Shelter/Vista Ridge Apts. – CDBG
ü Kimball Crossing HOME grant
ü Business Façade Improvement Program – RBEG
ü Police Facility Feasibility study – CDBG
ü Redevelopment Study – CDBG
ü HOME Rehabilitation Loans
ü Skatepark Project
ü Safe Routes to School Grant (cash match from school district)
Ms. Price stated that she would be coming back to the City Council with the status of the grants.
Mr. Antone thanked to City Council for the attention devoted to the Department Heads needs and that it was very much appreciated.
Mayor Flynn thanked the Department Heads for their hard work.
Ms. Pritchard stated that she will be very cautious recommending any new hires until she sees the PERS costs for next year.
Mayor Pro Tem Stevens thanked the City Manager, Department Heads and their staff members for the time devoted to preparing the budget.
M/S/C Frey, Houghton to adopt the Preliminary 2004/2005 Budget.
AYES: Councilmembers: Avilla, Flynn, Frey, Houghton and Stevens
ABSENT OR NOT VOTING: None
At 12:30 P.M. Mayor Flynn adjourned the meeting to August 3, 2004 at 7:00 P.M., in the Red Bluff City Council Chambers.
s/b Forrest Flynn