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HomeMy WebLinkAboutMinutes 1993-06-02 Mayor Roberta Cerri Teglia Council: Jack Drago Joseph A. Fernekes ~John R. Penna Robert Yee MINUTE__S City Council City Council Conference Room City Hall June 2, 1993 165 AGENDA ADJOURNED REGULAR MEETING CALL TO ORDER: (Cassette No. 1) ROLL CALL: Resolution approving the 1993-1994 South San Fran- cisco Conference Center Authority Budget. A RESOLUTION APPROVING THE 1993-1994 SOUTH SAN FRANCISCO CONFERENCE CEN- TER AUTHORITY BUDGET ACTION TAKEN ADJOURNED REGULAR MEETING 7:12 p.m. Mayor Teglia presiding. Council Present: Council Absent: Drago, Fernekes, Yee, and Teglia. Penna. Mayor Teglia stated that the Council would hear Item No. 2 first to allow time for Councilman Penna to arrive. She stated that she knew there was a lot of interest in Item 1, however, it was not for public discussion but was a study session for the Council to understand and ask questions. She stated that there would be an opportunity for the public to address the item at a later time. Executive Director Carl presented the Conference Center Fiscal Year 1993-94 Budget for approval and proceeded to describe the document in detail. She stated that the budget assumes restructuring of the debt service, and Measure C tax revenue pro- jections have been lowered from the Peat Marwick projections. She stated that the Authority was considering re- questing the City Council to authorize an outside audit of the transient occupancy tax of all the hotels to gain a more accurate basis for the Center's future financial direction. Discussion followed: possibility of another hotel coming into the City; proposals were being solicited for the audit based on a fee or contingency percent- age of the tax; the proposals would come back at the end of next week; tax impact from the Ramada Inn; 40% occupancy on one hotel waiting to be sold by the end of the year; a greater T.O.T. was 6/2/93 Page 1 ~ENDA _ 2: Resolution - Continued. 1. Discussion of the 1993-1994 Operating Budget. ~12o ACTION TAKEN . 166 anticipated next year; this budget only contained two numbers to play with; the debt service was $240,000 short based on the current bond measure; this was a tight financial plan; impacts from the change in T.O.T.; the audit fee was not included in the budget; the cost of the audit could be higher than the potential income which would not make sense to do; that the sales tax audit cost had been a percentage of the tax collected; some hotels had not been audited for over a year; didn't the Center do the same services we pay the San Mateo County Convention & Visitors Bureau to do; Councilman Penna planned to raise the issue with the Council where 50% of that paid would be earmarked for the Center; there was a $I10,000 cap on the fee to the Visitors & Convention Bureau; that marketing ef- forts from the Convention Center aided the Center; $742,000 for marketing services was for advertising and involvement in industry trade shows and booth spaces; hiring of employees; T.O.T. does not affect people staying at a hotel over 30 days; if they could not restructure the bonds the Center would have to make serious policy changes at the operating level; the bond counsel felt they were in a good position for a restructuring of the bonds; etc. City Attorney O'Toole recommended that the Coun- cil adopt the resolution and direct staff to prepare an audit of the T.O.T. and investigate the refinancing. M/S Drago/Fernekes - To adopt the Resolution and direct staff to prepare a T.O.T. audit of all the City's hotels, and investigate the restructuring of the debt service. RESOLUTION NO. 62-92 Carried by unanimous voice vote. Mayor Teglia stated that she and Councilman Yee served on a Subcommittee and had discussed the proposal prepared by former City Manager Armas after he had left the City. She stated that the staff report contained a sheet of the Subcommittee's proposal for 1993-94 which was different than that proposed by Mr. Armas. She stated that it did not include projects for police and public works because they had not met with the departments, however there would be another Council meeting where the information would be presented on the missing departments. 6/2/93 Page 2 AGENDA ACTION TAKEN . 167 ..L. Discussion - Continued. Councilman Penna Arrived at the Meeting: 6/2/93 Page 3 She stated that there were revenue enhancements yet to be considered by the police and fire departments. She stated that after Council review they might want to restore cuts in departments that suffered the great- est hits in the $1,980,270 savings and look at the cut positions that have the most impact. Councilman Penna arrived at the meeting at 8:17 p.m. Mayor Teglia related: 4% cut in the police depart- ment with the exclusion of sworn personnel; Fire Chief presented a reorganization which resulted in a 3.75% cut rather than a 4% cut; Library a 7.5% cut; Finance a 10% cut; Economic & Community Development a 7.4% cut that was a severe hit; the Treasurer 7%; City Clerk took a heavy cut of 11.5% with a $10,000 savings in not advertising Council agendas other than just a notice of the meet- ing; City Attorney cut 6.8 %, etc. Councilman Yee stated that he was uncomfortable in affecting people's lives and did not want to eliminate any of the positions, but this proposal was just a starting point from the Subcommittee after having met with the department heads. He stated that any employees present whose jobs were affected should not be concerned because this was just a proposal, and he had asked the City Manager to look at different options before the Council executed any kind of layoff that put people on the street. Mayor Teglia stated that a hiring freeze was in effect at this time and it could be that an employee could work in another position. Interim City Manager Martel outlined her staff report: State cuts facing the City; former City Manager being asked to present a balanced 1993-94 budget; imbalance between revenue and expendi- tures; Mr. Armas' budget proposed offered $2.3 million in reductions that exceeded the estimated budget imbalance of $1.7 million to allow a level of flexibility to revise the cuts downward; Subcommit- tee reviewed the proposed reductions; Subcommittee determined spending could be reduced without the need to implement reductions of the proposed mag- nitude; alternate budget strategy presented by staff; etc. AGENDA ACTION TAKEN . 168 1._ Discussion- Continued. 6/2/93 Page 4 She stated that staff needed direction on the target level of proposed reductions; revenue enhancements; and use of undesignated fund balance for technology improvements. Discussion followed: packet information had not been received until last night; cutting $1.9 million; and additional savings due to the 4% vacancy factor; that a million dollar of unearmarked funds could be a realized savings; a $500,000 interfund transfer to the C.I.P.; how the projected figures had been derived; Vice Mayor Fernekes wanted to see a more realistic figure on the vacancy factor; that this did not take into account further cuts from the Governor; developing revenue enhancements to deal with further cuts; support of the half cent sales tax measure; State proposal to reduce or eliminate sales tax on manufactured equipment and other material; Councilman Drago wanted an updated financial report on the T.O.T, and a complete list of vacan- cies by title at the next meeting so the Council could see how many positions could be absorbed through the vacancies; Council was looking at a parcel tax for stormwater which Councilman Drago was against; charging additional paramedic fees for insured people; increasing development fees; Vice Mayor Fernekes wanted to see a list of the enhance- ments, by category, at the next study session; Coun- cilman Yee asked for an organizational chart that shows all positions, including those proposed to be eliminated or vacant; positions to be eliminated; Mayor Teglia proposals on positions to be restored - Assistant Planner, Building Technician; Vice Mayor Fernekes wanted to see a balanced budget; revenue enhancements would address further State cuts, and to reduce eliminated positions; Councilman Penna did not agree with limiting the library to four days a week when teenagers could utilize the facility; that there would be one more study session on the bud- get and there would not be an adopted budget by 7/1/93; staff would go back and work on the reve- nue estimates for the 6/16/93 budget meeting and hope to get clarification on the reductions; staff directed to take the 1.9 million cut and break it down into three categories - a) non personnel, b) existing vacancies, c) positions for elimination; whether the Council could adopt a budget by 9/1/93, etc. AGENDA ACTION TAKEN 169 Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotia- tions and litigation. RECALL TO ORDER: ADJOURNMENT: Council adjourned to a Closed Session at 9:36 p.m. to discuss property negotiations for a two acre parcel located at Oak and Grand pursuant to Government Code 54956.8. Mayor Teglia recalled the meeting to order at 9:54 p.m., all Council present, no action was taken. MIS Drago/Fernekes - To adjourn the meeting 'to 6~3~93 at the Conference Center, 255 South Airport Blvd., for a Closed Session for interviews of City Manager candidates. Carried by unanimous voice vote. Time of adjournment was 9:55 p.m. RESPECTFULLY SUBMITTED, _ltarbara A. Battaya, City Clerk ity of South San Francisco APPROVED. ~oerta Cerri T'~lia, May)~ JCity of South San Francis~:o The entries of this Council meeting show the action taken by the City Council to dispose of an item. Oral communica- tions, arguments, and comments are recorded on tape. The tape and documents related to the items are on file in the Office of the City Clerk and are available for inspection, review and copying. 6/2/93 Page 5