HomeMy WebLinkAbout03/13/1993MINUTES
ADJOURNED REGULAR MEETING OF THE CITY COUNCIL
CITY OF SAN LUIS OBISPO
SATURDAY, MARCH 13, 1993 - 9:00 A.M.
COMMUNITY ROOM - CITY /COUNTY LIBRARY - 995 PALM STREET
SAN LUIS OBISPO, CALIFORNIA
ROLL CALL
Council Members
Present: Penny Rappa, Dave Romero, Allen K. Settle, Vice -Mayor Bill Roalman
and Mayor Peg Pinard
Absent: None
City Staff
Present: John Dunn, City Administrative Officer; Ken Hampian Assistant City
Administrative Officer; Jeff Jorgensen, City Attorney; Kim Condon,
Assistant City Clerk; Mike McCluskey, Public Works Director; Wayne
Peterson, City Engineer; Arnold Jonas, Community Development
Director; Bill Statler, Finance Director, Bob Neumann, Fire Chief; Ann
Slate, Personnel Director, Jim Stockton, Recreation Director, John
Moss, Acting Utilities Director; Deb Hossli, Administrative Analyst;
David Gray, Administrative Analyst.
STUDY SESSION
1. BUDGET WORKSHOP NO. 3 (File No. 233)
A. INTRODUCTION
John Dunn. City Administrative Officer, explained that the City's deficit is caused by several factors;
lower than projected sales tax revenues, the state -wide recession, State budget grabs, and increased
operating costs, and that in order to ensure long -tern financial health, expenses must be substantially
reduced. He reiterated that this was a preliminary recommendation only, and that final budget
adoption would not take place until June.
B. FISCAL SITUATION UPDATE
Bill Stotler, Finance Director, gave a detailed picture of the City's financial condition and explained
that the budget projections used in his research were based on key trends in the last ten years, with
population and cost of living being the two leading indicators.
C. SPECIAL TASK FORCE RECOMMENDATIONS
Erwin Willis. Fire Battalion Chief, reported on the findings of the Tax Override for Public Safety Task
Force. The task force's recommendation was not to pursue a ballot measure to implement a tax on
public safety services.
Deb Hossli. Administrative Analyst, stated that the findings of the Grant Task Force were that State
and Federal grant monies were a viable source of funding and that the City should establish a grants
management policy to control the process.
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Saturday, March 13, 1993 - 9:00 AM
Ann Slate. Personnel Director, summarized the Employee Working Group's conclusions on the
possible steps in the layoff prevention plan, including transfer and retraining of targeted personnel,
salary deferral, a hiring freeze, voluntary work -hour reductions and incentive options for early
retirement.
Wayne Peterson, City Engineer, said the Prevailing Wage Task Force had found a 20 to 25% savings
if prevailing wage was not required on City public works projects.
Bill Statler. Finance Director, said that the Revenue Task Force had identified 20 new revenue sources
as outlined in Section D of the agenda report.
10:35 A.M, Mayor Pinard declared a recess.
11:00 A.M., Council reconvened, all Council Members present.
D. EIGHT POINT STRATEGY FOR PRODUCING A BALANCED BUDGET
John Dunn. City Administrative Officer, reviewed the Eight Point Strategy as outlined in Section A of
the agenda report and then focused on the issues that were before the Council today: A) Reducing
service levels; B) reducing staff; C) using reserves in a creative way to pay cash for the construction
of a Headquarters Fire Station and the Performing Arts Center in order to save money over the next
30 years on debt service; D) implementing revenue increases; E) negotiating for reduced labor costs;
1 F) raising the cable franchise fee from 4 to 5 %; G) increasing the Transient Occupancy Tax to 10 %;
H) implementing reimbursement to the General Fund from water and sewer funds for computer
mapping engineering services; 1) updating public safety fees from 1983 levels; J) adopting proposed
uniform building codes fees.
E. PUBLIC COMMENT PERIOD
Mayor Pinard opened the meeting to public comment at 11:15 a.m.
Berme Reis, a 19 -year City employee, spoke in support of retaining her position as Customer Services
Supervisor.
Warren Sinsheimer. 1745 Tiburon Way, President of the Foundation for the Performing Arts, said that
the Performing Arts Center was a good buy and that the City should stay on course with the project.
Gary Henderson. Water Division Manager, expressed support on. behalf of the Mid - Management
Employee Association of the CAD's recommendations regarding revenue enhancements and
employee negotiations to reduce labor costs.
Amy Shore . 1536 Garden Street, urged Council to fund the Environmental Center and maintain its
current level of funding for ECOSLO.
James Arndt. 1080 Bluebell Way, supported proposed cutbacks in staffing and said the City had too
much administration and did too many studies.
Tim Girvin. SLOCEA President, hoped any reduction in the work force would be only temporary and
supported the use of reserves to prevent lay -offs.
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Saturday, March 13, 1993 - 9:00 AM
Dan Wunsch, a 13 -year veteran and President of the Fire Association introduced Mike Ward and Bob
Wilkenson.
Mike Ward, Fire Engineer /Paramedic, expressed his concern about proposed cuts to Fire Department
staff and said that the department had responded to 2400 emergencies in 1992, 60% more than in
1980.
Bob Wilkenson. Fire Captain, said the Fire Department was responsible for not only fire suppression,
but all emergency services, suggested that a freeze be put on firefighter positions currently vacant
and that the City pursue cost recovery for emergency response.
Pat Veesart.1570 Hansen Lane, representing the Sierra Club /Alternative Transportation, asked Council
not to eliminate contract positions of Bicycle Coordinator, Energy Conservation Coordinator and Solid
Waste Coordinator.
Tom Kneaher, 584 Napa, Morro Bay, urged Council to fund a position of ECOSLO Coordinator to
preserve the Morros.
Douglas Murdock. 4501 Orcult Road, General Manager of La Lomita Ranch, said he hoped the Council
would go forward with the Los Nomadas project.
At 12:10 P.M., Mayor Pinard declared a recess.
1:16 P.M. the meeting was reconvened, all Council Members present.
F. PUBLIC COMMENT PERIOD
Mayor Pinard again opened the meeting to public comment.
Tony Fiore s. P.O. Box 1283, spoke on behalf of Police and Fire personnel and opposed cuts.
Ann Dinshaw, 1473 Monterey, representing the SLO Visitors and Conference Bureau, expressed
opposition to an increased TOT and encouraged more spending on advertising to promote tourism.
Terri Reay. 2491 Tierra Drive, General Manager of the Cuesta Motor Lodge, opposed raising the bed
tax and supported increased promotion.
Larry Tolson, a 17 -year City employee, warned that downsizing the labor force might prove detrimental
to the organization.
Marilyn Barba. 1809 Royal Way, opposed public safety cutbacks while proceeding with the Performing
Arts Center.
Charlie Fruit. 545 Higuera Street, President of the Chamber of Commerce, objected to reductions in
funding for promotional advertising.
Richard Kransdorf, 160 Graves, asked Council to budget for an ECOSLO Coordinator for
environmental stability. 1
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Saturday, March 13, 1993 - 9:00 AM
Mike McGee. 2615 Meadow Street, addressed the Council on retaining the Crime Prevention
Coordinator position.
Marcia McGee. 2615 Meadow, also supported preserving the Crime Prevention Coordinator.
Dave Garth, 2046 San Luis Drive, Chamber of Commerce Director, expressed opposition to raising the
bed tax while decreasing promotional funding.
Charles Noffiett, 2134 Santa Ynez, suggested the paramedic bonus be suspended to save one
paramedic position.
Bill Sutton, 1008 Kerry Drive, Police Department Chaplin, opposed cuts to police personnel.
Paul Allen. 191.Luneta Drive, encouraged the Council to raise fees rather than cut services and asked
that they continue to support alternative transportation.
George Newland. 1635 Hillcrest Place, General Manager of Duality Suites, expressed his opposition
to cutting tourism contracts while raising the Transient Occupancy Tax.
Tom DePriest, President of the Police Officers Association, wanted the public to be aware that there
is a current shortage of police and fire services.
1 Joan Lawrence. 11 Pena Lane, asked Council not to decrease funding to Grants -In -Aid, especially to
those programs benefitting children.
Jesse Norris. 2047 Wilding Lane, owner of the Sands Motel, was against raising the bed tax and
opposed building a new fire station.
Doreen Case. 244 Albert Drive, opposed cuts to police and fire services.
Phil Johnson, 699 Patricia Drive, reminded Council that tourism promotion does pay off and asked
that police and fire services be preserved.
Dan Smith, 1212 Garden Street, owner of the Garden Street Inn, said the City can't afford to lessen
its investment in the tourism industry.
Phil Ashipy 1586 La Cits Court, expressed apprehension over the loss of city planners due to the
effect it would have on environmental issues.
Robert Binkele. 1767 Alrita, Manager of the Best Western Somerset Manor, was against cuts to fire
and police personnel and said advertising to promote tourism should be increased.
Dick Cleeves, 6079 Joan Place, said the BIA was not in favor of reductions in trolley service or tourist
promotion cuts.
Council Member Ranoa read a statement into the record from Jeans Albertson expressing opposition
to police and fire budget cuts.
There was no further public comment.
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Saturday, March 13, 1993 - 9:00 AM
G. SUMMARY OF ISSUES BEFORE THE COUNCIL 1
John Dunn, City Administrative Officer, presented an overview of the policy options before the Council
and asked that they specify the direction that staff needs to prepare the budget.
Council asked for clarification regarding certain contract positions.
Ken Hamoian, Assistant City Administrative Officer, said that the contract position of Solid Waste
Coordinator would continue for another year, and that the Bicycle Coordinator and Energy
Conservation Coordinator positions had been created to accomplish specific tasks in a given contract
period.
Council questioned Enterprise Funds reimbursements to the General Fund.
Bill $tatter. Finance Director, said that the Enterprise Funds did reimburse the General Fund for billing
and other services and that he would review that reimbursement schedule to ensure its equity.
Council Member Settle asked staff to go back to the employee bargaining units to look at alternative
to lay -offs such as deferred increases, a freeze on promotions and reclassifications, reduced working
hours, early retirement programs, transfer of employees whenever possible, hiring freeze, reduced
overtime, temporary and contract positions. He was in favor of exploring a joint powers agreement
for consolidation of purchases. He supported construction of the Performing Arts Center and the fire
station replacement. He said he was not willing to increase the TOT at this time, and that although
some recreation fee increases were appropriate they should also be fair. In regard to long-term
revenue sources, he was amenable to allocating CDBG revenues for economic stability activities and
homeless shelter operations and also thought it prudent to implement paramedic service charges.
However, he said that at this time he was not interested in updating park -in -lieu fees, establishing
transportation development impact fees, cost recovery from special events, or a local property transfer
tax.
Council Member Roalman said that he had five areas he would like staff to examine: 1) Combining
the position of Public Works Director and Utility Director; 2) proceeding with the purchase of property
for the new headquarters fire station but deferring construction; 3) using open space funds to
purchase the Emerson School property; 4) increasing the TOT and increasing promotion; and 5)
ensuring that the water and sewer funds were paying their fair share into the General Fund.
Council Member Romero said he was receptive to personnel reductions by attrition and believes that
it is important that we retain long -time employees because of their knowledge and expertise. He
supported negotiating with employees for reduced hours, closure of City offices between Christmas
and New Year, a hiring freeze, no pay increases or promotions, and retirement incentives. He
supported the Performing Arts Center and the purchase of property for the fire station, but thought
construction on it should be delayed. He asked that a condition be placed on the purchase of the
second fire station site that the Emerson School site be sold, with the City purchasing the green lawn
space on the property with open space funds. He suggested that the $900,000 in bond fund money
that must be used before December be used toward the purchase of the second fire station site, or
toward construction should it be decided to go forward with the project He was in favor of increasing
the TOT to 10% and increasing advertising. In terms of future revenue sources, he supported
examining all options outlined in the staff report
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Saturday, March 13, 1993 - 9:00 AM
Council Member Rappa supported all lay -off prevention measures and said years of service should
be factored in when considering lay-offs. On the revenue enhancement side, she was in favor of
raising the TOT, increasing promotional contracts, and keeping Grants -In -Aid funding at current levels.
She expressed concern over the cost of the new fire station and was open to deferring construction.
She said it was important to move ahead with construction of the Performing Arts Center because it
was a proactive solution for long-term fiscal health.
Mayor Pinard explained that it was important to move forward with the Performing Arts Center as it
honored a commitment made when the TOT was raised from 6% to 9%. She warned that programs
like the Golden Handshake could not be counted as real savings because no City employees currently
eligible for the program were targeted to be laid off. She said that she was not in favor of raising any
fees at this time and said that government existed to provide services, not sustain itself. She said
some recreation fees might be raised, but none that would impact children's programs. She opposed
use of reserves except for the recommended amount to be used to eliminate future debt service.
After discussion, Council reached consensus on the following direction for staff:
Work with employee associations with respect to lay -off mitigation strategies;
Look at some amount of City Hall closure;
Increase recreation fees being sensitive to increases that affect youth programs;
Increase Transient Occupancy Tax while increasing promotional advertising;
No cuts to Grants -In-Aid funding;
Judicious use of reserves for funding the construction of the Performing Arts Center and Fire
Station Headquarters;
Evaluate postponing construction of Fire Station Headquarters while proceeding with purchase
property at Broad and Santa Barbara;
Explore concept of combining Public Works and Utilities;
Examine use of Open Space funds for purchase of the Emerson School site;
Ensure that the General Fund is reimbursed sufficiently from Enterprise Funds;
Improve procurement process
Council Member Rapna asked her colleagues to respond to her memorandum dated March 12, 1993
regarding further reductions to the City Council budget, reducing the Council Secretary position to
half-time, and using old Community Development Block Grant Funds to offset expenditures from the
General Fund to underwrite the EOC Homeless Shelter.
After discussion, Council came to consensus on discussing the use of CDBG funds during their
discussion of the Women's Shelter scheduled at the next Regular meeting on Tuesday, March 16,
1993. A majority of the City Council requested staff evaluate reducing the Council Secretary position
to half-time status.
4:50 P.M. there being no further business to come before the City Council, Mayor Pinard adjourned
the meeting.
APPROVED BY COUNCIL' 4/6/93
KLC