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HomeMy WebLinkAboutMinutes 1994-02-02Mayor Joseph A. Fernekes Council: Jack Drago John R. Penna Roberta Cerri Teglia Robert Yee M!NUI_ES_ City Council City Council Conference Room City Hall February 2, 1994 124 SPECIAL MEETING CITY COUNCIL OF THE CITY OF SOUTH SAN FRANCISCO FEBRUARY 2, 1994 NOTICE IS HEREBY GIVEN, pursuant to Section 54956 of the Government Code of the State of California, that the City Council of the City of South San Francisco will hold a Special Meeting on Wednesday, the 2nd day of February 1994, at 6:00 p.m., in the City Council Conference Room, City Hall, 400 Grand Avenue, South San Francisco, California. Purpose of the meeting: 1. Interviews of candidates for the Personnel Board. 2. Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotia- tions and litigation. Dated: January 31, 1994 City Clerk City of South San Francisco CALL TO ORDER: ROLL CALL: AGENDA (Cassette No. 1) Vice Mayor Yee Arrived at the Podium: ~ Interview of candidates for the Personnel Board. ACTION TAKEN 6:03 p.m. Mayor Fernekes presiding. Council Present: Council Absent: Drago, Penna, Teglia and Fernekes. Yee. Vice Mayor Yee arrived at the podium at 6:06 p.m. Council interviewed the following candidates: Rich- ard Noftsger, Judith Honan (who chose to be inter- viewed for the Planning Commission) and Patsy Jackson-Tobias. 2/2/94 Page 1 AGENDA ACTION TAKEN 125 Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotia- tions and litigation. RECALL TO ORDER: 1. Interview of candidates for the Personnel Board - Continued. ADJOURNMENT: Council adjourned to a Closed Session at 6:45 p.m. to discuss property acquisition pursuant to GC 54956.8, 368 Comur - Jesus Armas, litigation pur- suant to GC 54956.9(a), City of S.S.F. vs. EPOCH aka Shearwater. Mayor Fernekes recalled the meeting to order at 7:12 p.m., all Council was present, no action was taken. Council interviewed Rhonda Ceccato. Discussion followed on the Mayor's meeting with a Personnel Boardmember and the Personnel Director, which would be reported later to the Council. M/S Teglia/Drago - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 7:22 p.m. ~ESPECTFULLY SUBMITTED, Barbara A. Battaya, C~ City of South San Francisco APPROVED. 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. 2/2/94 Page 2 Mayor Joseph A. Fernekes Council: Jack Drago John R. Penna --Roberta Cerri Teglia Robert Yee MINUTES City Council City Council Conference Room City Hall February 2, 1994 126 AGENDA ADJOURNED REGULAR MEETING CALL TO ORDER: (Cassette No. 1) ROLL CALL: Mid-year budget review, adoption of resolutions approving 1993-94 budget amendments, multi-year general fund projections, further consideration of sidewalk repair participation, amusement tax, rental car parking lot tax and fire permits, z.~/2_ O A RESOLUTION APPROVING BUDGET AMENDMENT 94-2 FOR THE 1993-1994 OPER- ATING BUDGET A RESOLUTION APPROVING BUDGET AMENDMENT CIP NO. 94-1 TO THE 1993-1994 CAPITAL IMPROVEMENT BUDGET Discussion on proposed ordinance establishing fees on rental car storage facilities surplus. ~-3"7'7 AN ORDINANCE ADDING SECTION 6.16.048 TO THE SOUTH SAN FRANCISCO MUNICIPAL CODE IMPOSING BUSINESS LICENSE TAX ON OPERATORS OF RENTAL CAR STORAGE FA- CILITIES Discussion on proposed ordinance and adoption of resolutions deleting non-existing positions and includ- ing new positions. AN ORDINANCE OF THE SOUTH SAN FRAN- CISCO CITY COUNCIL AMENDING CHAPTER 3.12 OF THE MUNICIPAL CODE BY ADDING AND DELETING CERTAIN POSITIONS TO AND FROM THE COMPETITIVE AND NON- ACII ON. TAKEN ADJOURNED REGULAR MEETING 7:24 p.m. Mayor Fernekes presiding. Council Present: Council Absent: Drago, Penna, Teglia, Yee and Fernekes. None. City Manager Wohlenberg presented his own agenda and proceeded to follow the seven items for discus- sion: 1) Introduction and outline of meeting objec- tives; 2) Review of General Fund forecasts and data, including additional information and new options offered today - discussion; 3) Review of suggested budget balancing options - discussion and consensus; 4) Discussion of potential spending reduction targets and impacts/implications - discussion and consensus; 5) Review and discussion of potential revenue en- hancements - discussion and consensus; 6) Review of current Special Improvement Projects, including potential revisions, phasing etc. - discussion and consensus; 7) Initial consideration of proposed amendments to the 1993/94 City budget including revisions to the classification-compensation plans - further consideration and action at the Regular Meeting of 2/9/94; 8) Next meetings and/or steps; 9) Adjournment. He spoke in detail: beginning policies to achieve a balance in income and spending; spending reduc- tions and enhancements in revenue; revisit improve- ment projects; revisions to the classification and pay plan will be done at a regular meeting; the forecast- ing process is one tool to aid the Council to achieve financial stability and make sounder poli- cies; if the projections are accurate this could be a planning tool etc. Finance Director Margolis spoke in detail: of the three scenarios; assumptions used; using the most 2/2/94 Page 1 AGENDA ACTION TAKEN 727 -2. Discussion - Continued. COMPETITIVE SERVICE A RESOLUTION APPROVING JOB SPECIFICA- TIONS FOR POSITIONS IN THE MANAGEMENT AND CONFIDENTIAL AND THE POLICE ASSO- CIATION COMPENSATION PLANS A RESOLUTION AMENDING THE CITY OF SOUTH SAN FRANCISCO'S MANAGEMENT AND CONFIDENTIAL EMPLOYEES, AND PO- LICE ASSOCIATION COMPENSATION PLANS conservative projection, they were not going to see a turn around in the three year projections; conservative approach to revenue estimates is that it will be the same as the last few years; State hits were not known; looking at what would happen if there were no salary increases, only in benefits in line with the CPI for the next three years; they had factored in the school property purchase; the second scenario assumes there will be a turn around in 1996; looking at 1.5% increase for each unit in health benefits; the assumption is that the fund bal- ance will be used up by 1996; the assumption is that the number of employees would stay the same; assumption is that by the third year the revenues will exceed expenditures, but assumes no wage increases for the next three years; there would be a gap in the first two years; not using reserves for on-going operations in the next several years in any scenario; assumption of adjusting staff for the extension of Orange Park etc. Discussion followed: anticipated use of the sewer fund loan for the Corporation Yard improvements; $200,000 Orange Park maintenance cost; $250,000 for equipment replacement and $50,000 for new equipment and furnishings; if no other costs or revenues changed, the shortfall going into 1994-95 would be $395,000; Councilmember Teglia felt that, if the City was going to say no raises, they should say no layoffs; she related that the private sector was only giving incentive increases with revenue generation; Councilmember Penna agreed with Councilmember Teglia on no raises and no layoffs; possible revenue sources of $100,000 in develop- ment fees for major projects to put them on a cost reimbursement basis; increasing business license fees for employees from $5.00 to $15.00 amounts to $200,000; sidewalk repairs amounting to $150,000 had been discussed by Council and had abandoned the idea; if the sidewalk repair was not paid by the homeowner it became a lien on the property and was not paid until the property was sold; Councilman Drago did not support any increase in taxes or fees; Council should first learn what it cost to run the government and then look at fees; previous use of one time funds; $600,000+ shortfall; if no other costs or revenues changed, the shortfall going into 1994-95 would be $395,000; revenue decline in the General Fund from the El Camino Corridor; the debt payment; projected assumptions; growth of the deficit; Councilman Drago thought there was a 2/2/94 Page 2 AOENDA ACTION TAKEN Discussion- Continued. 2/2/94 Page 3 balanced budget for 1993-94, yet the expenditures are one million dollars more; this was because of the surplus school property purchase; Mayor Fernekes wanted to know how the City stood on the 4% vacancy factor; Finance Director was projecting we would come in at 1.4% and if, we are to spend everything that has been set aside, it would be 3.8% savings on personnel; there had been four years of cuts; how much had been set aside for the equip- ment replacement fund; $250,000, but only $100,000 is spent and the remainder goes into the 4% savings; the 4% was equal to $102,000; the 4% factor was gambled and plugged into the budget each year because the vacancy number was never known until the end of the year; Councilmember Penna felt, if there were increased services, there should be increased revenues; 1% of the employees is $219,000 a year and, even if all raises were de- ferred, Council was looking at $320,000 - which is a $700,000 shortfall; Councilmember Teglia sug- gested closing down the City for the four days before Christmas and New Year's and looking at what that would save the City; the closure would not affect police and fire people; if the City borrowed the $2.1 million from the Sewer Fund, they have to repay the $217,000 interest; a few years prior, the City charged a franchise fee to pay it off and got accustomed to the revenues in the General Fund; Councilmember Penna suggested the possibility of an inefficiency in the labor force, in the cost of materials or that we are paying too much; there was an increase in expenditures through salary increases to firefighters and police, which makes the assump- tion of expenditures higher for 1994-95, plus in- creases in supplies and cost of living overall that presented a 1.5% increase of $450,000 - that pres- ents a $150,000 gap next year; Councilman Penna felt that development studies should be handled by planning staff rather than by consultants and not raise development fees, which discourage develop- ment; if they could not do the studies, you do not need so many employees in planning and the City would save money etc. Discussion continued: whether the Council wanted a balanced budget or wanted to subsidize the budget; Councilmember Yee felt it was between the Council Subcommittee and staff to deal with the budget and stay within the policies set last year by balancing revenues to expenditures; Councilmember Teglia felt this was the most important work the Council did AGENDA ACTION TAKEN Discussion - Continued. 2/2/94 Page 4 and did not want it delegated to a Subcommittee; - Councilmember Drago wanted the departments to put a written price tag on the programs they provide to see what programs could be eliminated; staff had previously provided an incredibly detailed documen- tation on programs, but that could be updated; Councilmember Yee would not like to be on the Subcommittee if the budget was only going to be handled by the Council and suggested authorizing the City Manager to deal with the options and pres- ent the budget to Council and that the Council not go through the budget line by line etc. Consensus of Council on City Manager agenda Item No. 3 - To give the City Manager responsibility to deal with the options rather than to a Subcommittee. Discussion followed: they were dealing with a substantial deficit; on monitoring the revenues and expenditures; Councilmember Teglia was against any new taxes or fees on businesses; potential revenue enhancements; assessment district for medi- an maintenance, development fees, business licenses and sidewalk repair program; Councilmember Yee noted that the Council did not want to raise revenues and, at the same time, did not want to lay people off when there was a $1.2 million deficit; Council- member Penna felt the City had to stay competitive, which did not mean raising development fees; whether to charge a homeowner for sidewalk repair; a lien could be filed against a property if a home- owner did not pay for the sidewalk repair; property lines run to the curb and it is a public easement; Director of Public Services Parini interpreted the Streets and Highways Code to mean that the side- walk was the responsibility of the property owner; if the City was put on notice that the sidewalk was in a dangerous condition, then it was the responsibility of the City to abate it; if the property owner did not pay for the repair, then a lien was placed on the property; what happens when a City tree causes the problem - who pays for the abatement of the dam- age; amusement and gross receipts taxes; charging for fire permits; establishing a fee on rental car storage facilities; there were only three rental car storage businesses; the draft ordinance applies to cars stored in the City for use at the Airport or wherever they want to use them etc. Consensus of Council - City Manager to get infor- mation back to Council on revenue enhancements; to AGENDA ACTION TAKEN 130 _.3.. Discussion - Continued. 2/2/94 · Page 5 look at sidewalk repairs, with a partial payment from homeowners; no new charge on fire permits; "no", to an entertainment tax; no new vehicle stor- age tax; no new development fees; no new business license taxes. Discussion followed: Councilmember Teglia suggested setting up an enterprise fund for the ga- rage and charge for auto services to the School District and other cities; Mayor Fernekes suggested a joint venture with the School District for one Agency being responsible for maintenance of lawns and fields with consistent standards; Council- member Penna felt that police presence on campuses should be charged to the School District; Council- member Teglia suggested moving City Hall people into the MSB during the retrofitting of City Hall; Councilmember Penna felt the City should petition the State to take over the School District because of duplication of services; Councilmember Yee felt the schools should be looked at for relocation of em- ployees during the retrofitting and wanted staff to investigate using State, either Historical or other, funds to relieve the $3 million burden to retrofit; Councilmembers Drago and Yee felt the Corporation Yard Project should be put on hold; Councilmember Teglia wanted the City to buy a building to house the Corporation Yard and get on with Orange Park; Councilmember Yee was against temporarily moving the Corporation Yard; Mayor Fernekes suggested, put fields in at the Alta Loma City property to meet ballfield needs, put a hold on Orange Park and the Corporation Yard and go ahead with retrofitting City Hall etc. Consensus of Council - To direct staff to look for a permanent place for the Corporation Yard. Mayor Fernekes stated that Item No. 7 would be moved to the next regular meeting, because it was an action item which Councilmember Drago would not vote on at a study session. Discussion followed: Councilmember Yee had a problem spending $10,000 for a parking enforce- ment vehicle and wanted staff to look into com- pressed gas vehicles and grants for purchasing com- pressed natural gas vehicles; he suggested postpon- ing the $185,000 payment for the Mazzanti property and that Mazzanti lease the property for a longer time period; City Manager would contact the AGENDA A~!!QN TAKEN 131 Discussion - Continued. Closed Session for the purpose of the discussion of personnel matters, labor relations, property negotia- tions and litigation. RECALL TO ORDER: ADJOURNMENT: Mazzanti family for a lease back; Councilmember Yee noted Caltrain will be extended to 1st Street and suggested telling BART that we don't want BART through our City etc. Council adjourned to a Closed Session at 10:46 p.m. to discuss labor negotiations, pursuant to GC 54957.6 - Operating Engineers and Police, and per- sonnel matters, pursuant to GC 54957 - City Attor- ney. Mayor Fernekes recalled the meeting to order at 11:09 p.m., all Council was present, no action was taken. M/S Teglia/Penna - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 11:10 p.m. RESPECTFULLY SUBMITTED, Barbara A. Battaya, City Clerk City of South San Francisco APPROVED. Cit~ut~h S~~! Fr~aM~ °ncisJo~ Jos(~h A. Ferne es¥ M~ 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. 2/2/94 Page 6