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HomeMy WebLinkAboutMinutes 2013-05-13 (2)SPECIAL MEETING y MINUTES J O cAZip CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO P.O. Box 711 (City Hall, 400 Grand Avenue) South San Francisco, California 94083 None. Meeting to be held at: CITY HALL CONFERENCE ROOM 400 GRAND AVENUE SOUTH SAN FRANCISCO, CA MONDAY, MAY 13, 2013 5:30 P.M. Call to Order. Time: 5:50 p.m. 2. Roll Call. Present: Councilmembers Addiego, Garbarino and Gupta, Mayor Pro Tern Matsumoto and Mayor Gonzalez. Absent: None. 3. Public Comments — comments are limited to items on the Special Meeting Agenda. 4. Agenda Review. 5. Budget Study Session: a. Operating Budget /General Fund Overview Before presenting the staff report for Council's review, Finance Director Steele introduced Internal Talent Exchange Program participants who had been assigned to the Finance Department and worked on budget preparation: Mich Mercado from the HR Department and Amy Mangubat from the Water Quality Control Plant. He then began the presentation with a summary review of the General Fund and the Operating Budget for the next fiscal year. He explained that since the economic downturn, the City had been operating in recovery mode. He advised signs of economic upturn were on the horizon. While property taxes were not growing at the rate of years prior to 2008, some strong revenue trends were emerging. The Operating Budget included a net surplus of $1.4 million before transfers out, and some changes to department budgets were proposed. The Library reduced payroll costs and took advantage of retirement savings and under filling of positions to deploy more of its resources towards library networking, eservice costs and bolstering Library collections. The Fire Department had proposed converting a contract employee to a full time regular employee for disaster preparedness which would add about $30,000 to the budget. As part of efforts to reorganize, the Parks and Recreation Department was proposing Parks Program Manager and Management Analyst positions in exchange for eliminating the Parks and Facilities Superintendent and Parks Supervisor positions. In addition, it proposed to upgrade an Office Specialist to an Administrative Assistant and add 2 part time Analyst Assistants in exchange for one Office Specialist. The Department also proposed to upgrade the Community Services Site Coordinator to full time Program Coordinator in the facilities area, removing one of the three Tree Trimmer positions, but restoring a Lead Parks Maintenance Worker and a Senior Building Maintenance Custodian. It also proposed to add $200,000 to the Parks and Recreation Budget for buildings and park maintenance, which could help restore some needed funds that were lost during the recession. Finance Director Steele explained that Council would have an opportunity to receive a more detailed analysis of the Parks and Recreation reorganization and ask questions during a May 22, 2013 Special Meeting on the subject. The City Manager's Office proposed adding $69,000 as start up costs for initiating a position to utilize social media for public communications. The City Manager's Office and the City Clerk's Office would work on the project together. The proposal was for a half year of funding and assumed the new City Manager would evaluate the possibility of filling a full time position. In regards to the Police Department, staff was recommending the restoration of a frozen Parking Enforcement Officer to provide more consistent parking enforcement especially around BART and McClellan Drive. The Finance Department was recommending two changes as a result of vacancies. The former Budget Manager position would be replaced by the Financial Services Manager. In addition, the Payroll and Financial Services Supervisor position would become the Payroll Manager position. Both would tie in nicely with the proposed shift towards an Administrative Services Department. Considering the fiscal year embodied an election, the City Clerk's Office proposed $120,000 for election costs. In the Public Works Department, increasing storm and water regulations lead to the proposal of an additional Public Works Worker to enable more consistent creek clean up. Public Works Director White added that with the Water Board's goals in mind, the Department was also focusing efforts on diverting trash and debris from the creek. The recommendation was for $175,000 to be augmented to the Storm Water Fund. Next, Finance Director Steele reiterated staff s recommendation that $1 million be set aside internally to fund the OPEB reserve. Liability was at present $82 million, but with the biennial evaluation, it would probably go up to $100 million. If approved, the internal reserve would go up to $12.7 million. In response to questions from Council, Finance Director Steele clarified that even though staff s SPECIAL CITY COUNCIL MEETING MAY 13, 2013 MINUTES PAGE 2 recommendation was for $1 million, Council could take a look at the reserves and contribute more. Total General Fund Discretionary Reserves were projected to end next year at $24 million. Finance Director Steele also recommended a transfer of $1.36 million from the General Fund to the CIP. Overall, after the CIP, storm water and OPEB transfers, the General Fund would be drawing on reserves by $1.4 million. Thus, the Operating Budget would be balanced, but after taking care of longer term needs, reserves would be drawn down. Regarding revenues, sales taxes were expected to grow by 3.5% year to year. Hotel taxes had been growing and were at a high level historically. In regards to property taxes, Finance Director Steele reminded Council of the dip in past revenues, but advised that there was I% growth this past year and 2% growth expected for next year. Finance Director Steele had sent a Friday memo drawing attention to the excess in Educational Reform Augmentation Funds (ERAF). These funds were leftover at the County after schools had been funded. There have been changes in the way the state is counting school expenditures, and so the County is strongly suggesting that cities not depend on the ongoing level of ERAF refunds. Though very hesitant to project a particular amount, estimates indicate about a 50% decline from $1.8 million to approximately $0.8 million. Mayor Pro Tern Matsumoto proposed consideration of a liquid reserve fund similar to the OPEB fund for future Conference Center expansion. She explained that due to outgrowth, the Conference Center Authority was compelled to look into expansion and the reserve could be used to set aside a percentage of the TOT taxes for that purpose. Councilman Garbarino, who also sits on the Conference Center Authority Board, added that the Conference Center was doing fine with business related to meetings, but was not getting trade show business. Without expansion, small to medium size trade shows could not be accommodated. The County, Redwood City and San Bruno were all considering or planning competing spaces. He agreed with Mayor Pro Tern Matsumoto's suggestion. Councilman Addiego concurred. Mayor Gonzalez mentioned that signal lights all over the City needed to be replaced or repainted. Director White noted that the Department proposed $15,000 in the Operating Budget to rehabilitate and deal with traffic signals. b) Capital Improvement Program ( "CIP ") fiscal year 2013 -2014. Director White explained the new CIP format which was redesigned by Management Analyst Justin Lovell and Associate Civil Engineer Tracy Scramaglia to aid readability. He then presented the staff report reviewing the proposed CIP. He advised the proposal would be presented to the Planning Commission for approval on May 16, 2013 and come to Council at the end of June. Mayor Pro Tern Matsumoto requested that acronyms be reentered in the CIP format. SPECIAL CITY COUNCIL MEETING MAY 13, 2013 MINUTES PAGE 3 Director White began to review the proposed CIP and started with total appropriations by funding source, which showed that $27.9 million worth of CIP funds had previously been approved by Council. He then stated that the value of the ongoing CIP, if approved as submitted, would be $40.5 million. In response to Mayor Pro Tem Matsumoto's query regarding remaining appropriations, Director White explained that some of the projects last for years until they are closed out, while some programs would always be ongoing. He added that there was always the opportunity for modifications to the CIP, which could sometimes lead to cost savings. In response to inquiry from Councilman Gupta on the distinction between appropriations and commitments, Director White advised that once funds are appropriated to the CIP, they are considered encumbered, but are still brought back to Council for final approval after the bid. Councilman Gupta requested addition of a forecast column indicating total future appropriations for the entire scope of a project. Director White next highlighted $500,000 in City -wide ADA improvements. In response to Mayor Pro Tem Matsumoto's inquiry as to the label "other ADA funds," Finance Director Steele explained that several years ago the General Fund had a large number of reserve dollars in addition to closed out developer deposit funds that were put aside into a special ADA reserve. Council previously authorized use of these funds for ADA improvements. Director White then began to review projects with new appropriations. He started with the Library's automated book return system which had a forecast date of June 2014. He then moved to the replacement and re- location of the Main Library generators, which would permit it to serve as the backup EOC. The two new proposed generators would cost roughly $240,000 /each. In response to Councilman Garbarino's inquiry as to the possibility of the Main Library serving as a full EOC backup, IT Director Hollis noted there was currently enough connection for it to function as a back up. However, due to data constraints, it could not function as a full fledged EOC. Councilman Addiego opined that it would be more practical to have a mobile generator which could move to multiple facilities. Library Director Sommer responded that the backup generators were used in emergencies like the San Bruno Pipeline Disaster to permit the continuation of Library Services. The generators, which were installed when the building opened, were not operating at capacity, had a foul smell and were generally not appropriate. Councilman Addiego stated when the generators were originally placed, it was intended that the Library would serve as the EOC in the event of an emergency. Now that the EOC was up and running, he didn't see the need to fund the $500,000 replacement generator proposal. After some discussion, Council decided to remove replacement of the generators at the Main SPECIAL CITY COUNCIL MEETING MAY 13, 2013 MINUTES PAGE 4 Library from the CIP and look into the cost of adding a second floor to the EOC as well as the acquisition of a portable generator. City Manager Nagel advised staff would prepare reports on these two items. Director White continued with his review of new proposals. He stated that the Corporation Yard is subject to increased regulatory supervision and scrutiny related to storm water. Based upon these new regulations, coverage for outside storage bins was proposed. Director White next discussed the proposed emergency generator for the server room at the Miller Avenue Parking Structure. IT Director Hollis advised that initially the generator was proposed exclusively for the server room, but the proposal had been expanded to cover the parking structure as a whole. He advised the cost of the generator for the server room portion only would cost between $50,000 and $100,000. Council decided to remove the generator at the Miller Avenue Parking Structure from the CIP and requested that staff study and review the various alternatives. Director White next discussed roof replacements targeted for the flat portion of the Magnolia Senior Center roof. During discussion with the budget subcommittee, it was decided that since the building was purchased with RDA funds, the minimum maintenance requirements would be performed to repair the leaking roof until further determination on plans for the building. The cost of the repairs would be roughly $100,000. Director White next presented a new appropriation of $120,000 to upgrade air conditioning for the Police Department server room, which gets quite warm due to the addition of equipment over the years. The next project discussed related to design for the proposed Police Department Locker Room renovations. In response to Mayor Pro Tern Matsumoto's query into the appropriateness of using the Police Seizure Fund for the locker room and evidence room renovations, Deputy Chief of Police Brosnan advised that the DOJ has determined that building improvements are an appropriate expenditure of seizure funds. Director White next discussed plans to replace underwater lights and valves at the Orange Memorial Park Swimming Pool and change the filtration system from Chlorine to UV. These projects would cost roughly $250,000. Director White then described proposed funding for renovations in People's Park. In response to questions from Council, Director White noted staff's belief that improvements to the park might increase the frequency of positive community use. Director White then discussed proposed improvements to the Brentwood Park Tennis Courts, which needed to be torn out and resurfaced. Mayor Pro Tem Matsumoto questioned the justification for the project due to the fact that this was identified as a priority by only 8 members of the Brentwood Community. Considering the expensive repairs that needed to be done, she opined that alternatives for the space might be considered. SPECIAL CITY COUNCIL MEETING MAY 13, 2013 MINUTES PAGE 5 Parks and Recreation Director Ranals responded that the park's immediate neighbors expressed concern over change of use and advocated for improvements to the current Tennis Courts. After some discussion, Council directed staff to pull the project and conduct further research on options for the Park. In terms of Sanitary Sewer improvements, there were 2 new projects that were somewhat ongoing and related to investing in lining and minimizing blending. The minimizing blending project involved the design aspect with secondary clarifiers and more work related to the overall aspects of the plant. Director White explained that blending was done during major storm events when treated water was mixed with untreated water and chlorine, then neutralized and released to the Bay. The Regional Board has required the minimization of blending and will probably eliminate it in the future. Director White continued with street rehabilitation. In addition to various paving projects, he noted that the island at Dubuque and East Grand Avenue would be removed since it had been confusing to drivers. In response to Mayor Pro Tern Matsumoto's comments on the state of certain roads and the size of potholes, Director White noted that some streets would be on this year's paving program. In terms of repairs, they were waiting for some better weather during the summer to go out and repair certain roads. Replying to Councilman Garbarino's query on the cost to pave a mile of road, Director White stated that generally it would cost about $1 million, but this amount could fluctuate depending on the width of the street and thickness of the asphalt. Assistant Public Works Director and City Engineer McMinn updated Council on Traffic Items. He advised that staff applied for an MTC traffic signal coordination grant that would appropriate staff time in support of the signal timing project on Spruce Avenue from Miller Avenue to El Camino Real. The next item discussed was a rapid flashing pedestrian beacon at West Orange Avenue and Centennial Way, which would be more visible to drivers. The I -380 Congestion Improvements were then discussed as was the US -101 Produce Avenue Interchange. Assistant Director McMinn then discussed the Evergreen Drive and Mission Road Traffic Signal and the US -101 North Bound Hook Ramp- Utah Avenue Improvements. The Downtown Truck Restriction Project was also proposed for study. 6. Adjournment. Being no further business, Mayor Gonzalez adjourned the meeting at 8:27 p.m. Approved: Pedro Gonzalez, 1�ayor City of South San Francisco SPECIAL CITY COUNCIL MEETING MAY 13, LV 13 MINUTES PAGE 6