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Home My WebLink About03/18/1991KIM MINUTES ADJOURNED REGULAR MEETING OF THE CITY COUNCIL MONDAY, MARCH 18, 1991 - 12.00 P.M. COUNCIL HEARING ROOM - CITY HALL - 990 PALM STREET SAN LUIS OBISPO, CALIFORNIA ROLL CALL Councilmembers Present Vice -Mayor Bill Roalman, Councilmembers Peg Pinard (arrived at 12:15 p.m.), Penny Rappa, Jerry Reiss and Mayor Ron Dunin (arrived at 12:10 p.m.) Absent: None City Stag Present John Dunn, City Administrative Officer; Ken Hampian, Assistant City Administrative Officer; Jim Gardiner, Police Chief; Jeff Jorgensen, City Attorney; Pam Voges, City Clerk; Bob Neumann, Acting Fire Chief, Bill Staffer, Finance Director, Harry Watson, Transit Manager, Carol Hoon, Recording Secretary PUBLIC COMMENT There was no public comment. BUSINESS ITEMS 1. FINANCIAL PLAN FORMAT AND POLICIES Council considered the organization and form of the 1991 -93 Financial Plan and Financial Plan policies regarding the use of Transportation Development Act funds; allocation of the Transient Occupancy Tax, sales tax, and business tax revenues; Human Resource Management Policy as it affects the use of temporary employees; user fee recovery goals, and development impact fees. John Dunn. City Administrative Officer, gave a brief review of the budget process. This year the Budget Review Team will have a significant role in evaluating individual department budget submissions. Bill Statler. Finance Director, briefly reviewed the Financial Plan organization. It will be composed of the nine major sections which are currently in use (See Exhibit A -1). Two changes will be made to the Operating Program section: the addition of the Solid Waste Management Program and the Risk Management Program, to reflect their emerging importance. The Community Promotion Program is being reclassified to "Economic Development" under the Community Development function in order to better reflect the goals of the activities. By supporting cultural programs, the City is better promoting the community and, therefore, reaping the benefits of the activity. Councilwoman Ranna expressed concern over placing cultural promotion together with economic development. In the past, these activities were promoted for the betterment of the citizens of the community. She felt that this would be lost in the reclassification. She did not feel the purpose of the PCC Grants -in -Aid was economically driven. Mayor Dunin also disagreed with the reclassification. He felt the separation between the programs also provided for the separation of funds. Councilman Roalman stated the purpose of the grants was for cultural events and may have trickle -down effects of attracting outside visitors, but would like it to remain the focus of cultural promotion. 461 City Council Minutes Page 2 Monday, March 18, 1991 - 12:00 p.m. Councilman Reiss supported the division of cultural events and economic development. Councilwoman Pinard also agreed. Upon general consensus, Council directed staff to rework the functional reclassification of the Community Promotion Program. Councilwoman Rappa expressed concern for a procurement and recycling policy. She would like to see it as part of the Financial Plan so that its use is more visible. Councilwoman Pinard stated she would like to see how implementation of this policy is carried out. Upon general consensus, staff directed to give an update on the current implementation of the recycling procurement policy. Bill Statler. Finance Director, reviewed the current TDA revenue policy with the recommendation that all TDA revenues should be allocated to alternative transportation programs, including regional and municipal transit systems, bikeway improvements, and other programs or projects designed to reduce automobile usage. Consequently, the use of TDA revenues for street purposes would be discontinued. Mayor Dunin disagreed with the recommendation. He felt the TDA revenues were important in maintaining the streets. Councilman Reiss concurred with Mayor Dunin and could not support.funds being taken out of the General Fund and felt now was not the time to place any extra burden on the General Fund. Councilwoman Pinard expressed concern for providing a good alternative transportation system so that future roadway problems may be alleviated. She felt the City Council needed a commitment to the future in order to accommodate growth and provide service to the community. Councilwoman Rama stated that if the City does not spend its TDA monies, it is dispersed to the regional system. Mayor Dunin expressed concern for the misuse of TDA monies and cited the trolley as an example. Councilman Roalman supported the policy and echoed the need for a long term commitment to alternative transportation. Harry Watson. Transit Manager, stated that federal funding would be lost if the City was not at 1009/0 spending on its TDA program. Federal funding pays for 75% of new bus purchases and the City's fleet would be up for replacement over the next two to four years. John Dunn. City Administrative Officer, stated that the effect on the General Fund over the next four year period would be minimal. After further discussion regarding the bikeway program, Mayor Dunin stepped down from the discussion and left the meeting at 1:15 pm. Councilwoman Rauna supported the staff recommendation for TDA funding and also felt bikeways were an appropriate inclusion in TDA funding. Councilwoman Pinard supported the staff recommendation with the exception of the bikeway funding which she felt would be negatively impacted if included in TDA funding. Councilman Roalman supported the policy recommendation. 462 City Council Minutes Page 3 Monday, March 18, 1991 - 12:00 p.m. Councilman Reiss did not support allocating all of TDA revenues to transit, but did agree with including bikeways. Council consensus was reached for this policy as stated with TDA funds to be allocated for alternative transportation. Councilwoman Pinard left the meeting at 130 pm. Bill Statler. Finance Director, discussed the current revenue distribution policy which was developed by the Council in 1970. He recommended the following changes: 1) Specific allocations of sales tax and general business tax revenues should be discontinued; revenues should be placed in the General Fund and remain unrestricted; 2) 209x' of TOT revenue should be allocated within the General Fund for community promotion and economic development activities; 3) The 80% remaining TOT revenues should be unrestricted within the General Fund; and 4) Any General Fund balances currently designated for cultural facilities should be transferred to the Capital Outlay Fund. After discussion, Council (3-2, Councilwoman Pinard and Mayor Dunin absent) concurred with the recommendation of staff. 1:55 pm. Councilwoman Pinard returned to the dias. Bill Statler. Finance Director, briefly discussed the Human Resource Management Policy with the recommendation that the revised policy retain its emphasis on managing the growth of the City's regular work force and ensuring that the hiring of temporary employees is not used as an incremental method for expanding the City's work force. After brief discussion, general consensus was reached to support the staff recommendation for the Human Resource Management Policy. Bill Statler. Finance Director, reviewed the user fee policy with the recommendation that the Citizen's Advisory Committee user fee policy be adopted (See Exhibit C), with the change that the current overall Recreation Program cost recovery goal from 409c to 50% be deferred until the Winter of 1991. He also recommended that development impact fees should be implemented in order to ensure that new development pay its fair share of the cost of constructing necessary community facilities. A schedule for revenue actions by the Council was presented with the majority of those actions to be taken prior to the end of fiscal year 1990. Councilwoman Ranua expressed concern with taking separate action on the items presented in Exhibit D and questioned if revenues were dependent on the increases in fees. Bill Statler. Finance Director, stated that projections for 1990 -91 reflect the assumptions that development review fees will increase and that the City will keep recreational cost recovery at 400/c. After brief discussion, Council concurred to retain the schedule for revenue actions as recommended. Councilwoman Pinard requested staff to keep a cumulative summary on prior actions available for Council review. 2:05 p.m. There being no further business to come before the City Council, Vice -Mayor Roalman adjourned the meeting. APPROVED BY COUNCIL: 4/3/91 ch Pat Voges, City CI1 _ _� r