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HomeMy WebLinkAbout06/28/1979City Council Minutes June 28, 1979 - 12:10 p.m. Page 2 CITY STAFF Present: Lee Walton, Administrative Officer; J.H. Fitzpatrick, City Clerk; George Thacher, City Attorney; Rudy Muravez, Finance Director PROMOTIONAL COORDINATING COMMITTEE Present: Sally Punches, Ruth Miles and Charles Long I HUMAN RELATIONS COMMISSION Present: Jerry Kaml, Terry Elfrink, James Griffin, Ruby Siegel, Orloff Miller and Jackie Meagow The City Council continued their review of the 1979 -1980 City Budget: I. Promotional Coordinating Committee Lee Walton, Administrative Officer, reviewed for the City Council the budget request of the P.C.C. and the so- called "formula" for allocation of 20% bed tax revenue, 2% sales tax revenue and 15% business license revenue. He felt that in view of what was happening in the real world of finance, that the Council should look to amending this "Formula ". He then recommended that the P.C.C. budget be approved as follows: Item PCC Request • CAO Recommendation 34,155.00 Grants Advertising $ 32,890.00 $ 27,000.00 Research Promotion (Chamber of Commerce) 349155.00 339000.00 Facilities Grants Publications 32,890.00 6,325.00 27,000.00 52500.00 , Research 1,897.00 -0- Contingency 2,530.00 3,000.00 Facilities Reserve 45,018.00 602200.00 $155,700.00 $155,700.00 Lee Walton continued that with this year's contribution of $60,200 to Facilities Reserve, the total reserve is $120,000. but reminded the Council that $60,000 per year would support a $800,000 bond issue. Sally Punches, Chairperson for the P.C.C., again reviewed the budget requests of the Committee and the reasons for the amount requested. Advertising $32,890.00 Promotion 34,155.00 Grants 32,890.00 Publications 6,325.00 Research 1,897.00 Contingency 2,530.00 Facilities 45,018.00 Committee Expenses 633.00 156.338.00 David Garth, Executive Director of the Chamber of Commerce, spoke in support of the increased allocation of public funds to the Chamber of Commerce for Promotional and Visitors Services. He stated the Chamber of Commerce request from the City was $33,775.00 split up as follows: $19,290.00 Visitor's Contract and $14,485.00 Promotional Contract. In addition to these funds, the Chamber would hope that the City would also fund the following publications: City Council Minutes June 28, 1979 - 12:10 p.m. Page 3 1. New City Map $ 2,000.00 2. Architectural Landmark Brochure 1,200.00 3. Path of History Reprint 1,000.00 4. Media Kit Folder 12200.00 $ 5,400.00 12:40 p.m. Due to the great number of persons attending the meeting and ' lack of chairs, Mayor Cooper adjourned the meeting to the Council Chambers with all Councilmembers present. Mayor Cooper suggested that the City Council take and consider each item recommended by the P.C.C. and vote on each one. On motion of Mayor Cooper, seconded -by Councilman Dunin, that the City Council approve the C.A.O. recommendation and allocate $27,000.00 to advertising. Councilman Jorgensen opposed this piecemeal approval to budget consideration. He felt the suggested amount for advertising was excessive due to severe cuts in other phases of the City's operation and loss of employees. Councilman Bond felt that he needed more time to study the impact funds for the promotional committee would have on overall city budget. Councilman Jorgensen also objected to placing advertising, grants and Chamber contract in the same budget and then putting one against the other to compete for funds. Councilman Dunin stated he was in support of a large allocation of funds for advertising. He continued that the money comes from motels through the bed tax and should be spent to generate more tax money. Councilwoman Billig stated she was not in complete support of advertising/ ' promotion budget due to so many unknowns in the economy. She also questioned the so- called "PCC formula" of sales tax, bed tax and business license tax. Councilman Jorgensen agreed that he did not like being tied down into a fixed formula for expenditures in advertising and promotion, particularly in view of present double digit inflation. He also wanted to discuss the entire PCC budget request and not fragment it into advertising, promotional grants, etc. Councilman Dunin again spoke strongly in support of the PCC formula as he felt it wsa the only way the business community could depend on some sort of fixed amount of promotional funds from taxes they collect. Councilman Dunin called for a vote on the motion. Motion lost on the following roll call vote: AYES: Mayor Cooper and Councilman Dunin NOES: Councilmembers Billig, Bond and Jorgensen ABSENT: None Councilwoman Billig.stated that as-she-reviewed the.request of the Chamber of Commerce and also through the entire city budget, she felt too much public money was being allocated to travel trips, conference and meals. She felt if ' these were eliminated or reduced, the funds could be used for the overall good of the citizens and not just a few employees, etc. Councilman Jorgensen felt that regardless of the so- called "Formula" that the budget request of the P.C.C. should have been cut as was done by all of the operating departments of the city. He felt this cut should be 107 of the 1978 -1979 approved budget and ignore past formulas. He suggested that the Council tentatively approve: 1) Facility Reserve; 2) Grants to local citizens; and 3) promotion and advertising. He asked Council to consider the following: City.Council Minutes June 28, 1979 - 12:10 p.m. Page 4 1) Advertising - 1978/1979 level $ 20,000.00 2) Promotion - 1978/1979 level 299700.00 3) Grants 32,890.00 4) Publications 6,325.00 5) Research Drop 6) Contingency Drop 7) Facility Reserve 662785.00 $155,700.00 Councilman Dunin suggested a 10% cut in all P.C.C. requests after Facility Reserve of $60,200.00. On motion of_Councilman.Jorgensen, seconded by Councilman Dunin, that Council adopt the following budget for the P.C.C. for 1979/1980: 1) Advertising $ 20,000.00 2) Promotion 29,700.00 3) Grants 32,890.00 4) Publications 5,500.00 5) Research -0- 6). Contingency 3,000.00* 7) Facility Reserve 64,610.00 $155,700.00 * Expenditure on approval of City Council only. Motion carried on the following roll call vote: AYES: Councilmembers Billig, Bond, Dunin, Jorgensen and Mayor Cooper NOES: None ABSENT: None On motion of Councilman Jorgensen, seconded by Councilwoman.Billig, staff was asked to research the so- called P.C.C. formula as it exists and make recommendation to Council on adjustments to formula. Motion carried, all ayes. II. Human Relations Commission Lee Walton, Administrative Officer, reported that with the departure of Orloff Miller he would recommend that the CETA employee be financed by the City for three months to complete two fiscal years 1979 -1980, but with no guarantee that this position would be continued after 6/30/80. He also felt that the H.R.C. should take some time to study alternatives to a part - time coordinator. He concluded that he cut the requested budget total to $100,387.00 which included $42,000.00 for grants. Jerry Kaml, Chairman of the H.R.C., reviewed with the City Council a very comprehensive packet of documents supporting their recommendations for public fund grants in the 1979/1980 budget. The H.R.C. made the following recommend- ations: Family Services Center $ 2.1200.00 Grandmother's House 500.00 Grassroots II -0- Hospice 39600.00 Hotline 3,600.00 Other Grant in Aids 18,688.00 $28,688.00 It was the H.R.C.'s feeling that rather than.continue to fund Grassroots II the City should ask for bids from other agencies performing social services to the community in order to see if the city's funds were being properly expended. The notice for bids would cover the services presently being paid by Grassroots II. Service accountability had been difficult to get from Grassroots staff. He concluded his introductory comments by stating he and other members and staff of H.R.C. were available to the Council to answer questions as to their recommendations. 1 1 1 City Council.Minutes June 28, 1979 - 12:10 p.m. Page 5 David Smiley appealed to the Council for special consideration for public funds for Grassroots II, as their funds run out on 7/1/79 and without city money they. would be out of business as their only cash was from the city. He stated he had worked with Grassroots for many years and admits that their administration might be questionable but the service they give the down and outers was real. Councilwoman Billig stated that she felt both the H.R.C. and H.R.C. Coordinator budgets allocated too much money-for travel and other meeting expenses, $900 for H.R.C. and $1,600 for staff. She added that in reviewing the entire budget for the city, she felt that there was too much money allocated to travel meetings and other expenses. Councilman Jorgensen agreed that too much money for travel and other expenses were spread over the entire budget. Harry Fryer, Sr. stated that.he was speaking as an agent for Dr. Mitchell, County Health Officer, and was investigating delivery of social services within the community. As a long time worker in this field, he felt the Council should be generous and give the funds requested by Grassroots II because the job they do for the community. Rose Barger stated she was in support of continuing some sort of funding for Grassroots II. Dr. Donald Cheek, Cal Poly, spoke in-support of funding for Grassroots II. He felt that due to the education of most public employees, they could not communicate with the poor, the minorities, etc. and this is one area that Grassroots was successful as the staff were from minorities and could speak to the clients. John Dearhart, Pacific Rehabilitation Center, spoke in support of the job being done by Grassroots to serve the needy of the city and county. ' On motion of Councilman Jorgensen, seconded by Councilwoman Billig, that Council transfer $500 from H.R.C. expenses and $1,000 from staff expenses and add it to grants account. Also, reduce Coordinator's salary and add to employees services but stay within the $104,367 overall budget. Motion carried, all ayes. The City Council continued further discussion of the Human Relations Commission's budget to 4:00 p.m., Tuesday, July 10, 1979, with the City Clerk to notify interested parties of the meeting. 3. 2:20 p.m. The City Council adjourned to Executive Session with all Councilmembers present. 4. 3:10 p.m. The City Council reconvened in Regular-Session, all Councilmembers present. 5. There being no further business to come before the Council, Mayor Cooper adjourned the meeting at 3:10 p.m. to 12:10 p.m., Friday, June 29, 1979. Approved by Council: �Fi. zpatrick, City Clerk ' August 7, 1979 ------------------------------------------------------------------- - - - - --