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HomeMy WebLinkAboutMinutes 2011-05-17 -. MINUTES 0.4 _ fi �r ° SPECIAL MEETING `9zric;; W` CITY C COUNC IL OF THE CITY OF SOUTH SAN FRANCISCO CITY HALL CONFERENCE ROOM 400 GRAND AVENUE SOUTH SAN FRANCISCO TUESDAY MAY 17, 2011 1. Called to Order: 6:34 p.m. 2. Roll Call: Present: Present: Councilmembers Addiego, Gonzalez and Matsumoto, Vice Mayor Garbarino, Mayor Mullin. 3. Agenda Review. None. 4. Public Comments — comments were limited to items on the Special Meeting Agenda. None. 5. Operating Budget for 2011 -2012. Budget Manager Tribby presented the Staff Report recommending that Council provide feedback to staff upon review of the proposed 2011 -12 General Fund Operating Budget, Sewer Fund Budget, Storm Water Fund Budget and Master Fee Schedule changes. Budget Manager Tribby began her summary by advising that the General Fund Operating Budget had a surplus of $246,000 before transfers out to the Storm Water Fund and the Health Benefits Fund. She noted the budget included a $550,000 proposed contribution towards the City's Other Post Employment Benefits obligation. These funds would be transferred to the Health Benefits Fund, which had $8.1 million set aside. $ 275,000 was the proposed General Fund contribution to the Storm Water Fund, which would cover increased costs due to compliance requirements. She then reviewed a summary of major revenue and expenditures for 2011 -2012 noting changes to revenues, including property tax ($485,000), sales tax ($947,000), transient occupancy tax ($430,000), business license ( <$113,000 >), commercial parking ($133,000), fines ( <$151,000 >) and interest income ( <$200,000 >). Expenditures included changes in PERS ($900,000), other benefits ($700,000), departmental reductions ( <$526,000 >), vacation, sick retirement /overcap payouts ($200,000), General Fund contribution to Storm Water Regulations ($275,000), Retiree Health OPEB Set -Aside ($550,000). Regarding reserves, the Reserve for Future Economic Development would remain unchanged. The Undesignated Reserve was at $3,692,000- $472,000 less than projected in 2010 -2011, but still within the City Reserve Policy Guidelines. Mayor Mullin requested that the triple -flip pertaining to reserves be explained. He also questioned whether it was tied to ERAF. Budget Manager Tribby explained that the triple -flip referred to a complex set of calculations applied by the state to its repayment of sales tax diversions. She advised projections can vary within $400,000- $500,000 positive or negative of estimates on a yearly basis. This year, the City would receive more than had been projected. She further advised that ERAF was separate from the triple -flip. Councilwoman Matsumoto noted the higher than expected property tax revenue was likely due to a refund from a settlement. Budget Manager Tribby and finance Director Steele confirmed that it was a one -time refund. Budget Manager Tribby then continued to summarize details pertaining to the other funds. She advised that due to a number of actions taken with respect to the RDA in March, the typical RDA summary would be presented when funds were shifted back to the RDA at a later date. Accordingly, the modified report she presented included going forward with the status quo with a brief summary of minor changes. She advised that tax increment (gross) was negative $1,573,000, which matched current County projections consistent with the 2010 -2011 budget. Pass - Throughs to Local Agencies were negative $202,000 consistent with Tax Increment receipts. Finally Transfers to the Housing Fund were down $615,000 consistent with expected Tax Increment receipts. The Sewer Fund included a 5% rate increase which was part of the 3rd year of the 5 -year rate plan. No increases were projected for the upcoming 2 years. The net was a $431,000 increase to the fund. New CIP appropriations related to Sewer would total $7,023,135 and would be presented in the CIP book. The Storm Water Fund would be bumped up by $225,000 due to Measure M Funds from the $10 vehicle registration fee, which would reduce the need for General Fund support. Finally, she summarized City Wide Personnel Changes and noted changes to the Master Fee schedule. Councilwoman Matsumoto questioned whether the Master Fee Schedule included proposed changes to the special event permit. Assistant City Manager Van Duyn advised the same fee amount would be assessed, however the function was being moved out of ECD and into the Police Department. Mayor Mullin questioned reimbursable versus out of pocket expenses relating to the BLS service. Chief White and Analyst Crosby explained the reimbursement rates were dependent upon the type of insurance coverage possessed by the patient and differentiated among MediCal, Medicare and private insurance. Finance Director Steele advised a large portion of the BLS revenue is traditionally written off due SPECIAL CITY COUNCIL MEETING MAY 17, 2011 MINUTES PAGE 2 to Medicare /MediCal insurance discounts Councilwoman Matsumoto questioned non - departmental operating expenditures. City Manager Nagel advised CCAG, Animal Control, and ABAG comprised the majority of this cost. Councilmembers Matsumoto and Addiego questioned progress with reduction of CORE Services. City Manager Nagel advised that staff is still focused on CORE Service issues /modifications. Per Council's direction, the City is holding firm with no lay -offs and relying on attrition. Mayor Mullin explained he expected CORE Services would be part of the general discussion over the next 5 years as 5 -6 million needed to be cut or earned. He noted that the economy was beginning to pick up and might inform the unfolding situation. Director of Finance Steele advised staff would come back to Council during the summer with a revised structural deficit number. Mayor Mullin noted his primary concern was beyond the 5 year structural deficit and more focused on the pension obligations that the City would face years down the road. Finance Director Steele agreed and noted action would need to be taken beyond pay as you go. City Manager Nagel advised the budget would be presented to Council for formal consideration and action at the second regular meeting in June. 6. Capital Improvement Program for Fiscal Year 2011 -2012. Director of Public Works White presented the staff report bringing the proposed 2011/2012 draft version of the capital improvement budget to Council for review. He advised the CIP was the result of collaboration among various departments outlining the needed improvements and the priority of implementation of these projects and purchases. The Planning Commission had reviewed the CIP for consistency with General Plan and the CIP subcommittee also had reviewed the plan. He then introduced Associate Civil Engineer Scramalgia to review highlights and /or additions to the plan. Ms. Scramalgia reviewed CIP Program Books for 2011 -2012. She noted 11.2 million in new appropriations was proposed. The bulk of this allocation came from Sanitary Sewer and Streets. She advised the Street Rehabilitation Program would take the largest amount of new funding in the Streets category. The streets to be rehabbed were still under advisement. Mayor Mullin noted the Noor Corridor was bumpy in San Bruno and smooth in South San Francisco and praised the street rehabilitation program for this condition. SPECIAL CITY COUNCIL MEETING MAY 17, 2011 MINUTES PAGE 3 Director of Public Works White attributed this to a coating that had been put on the street by the City. Ms. Scramalgia then moved to the Storm CIP category and identified the Paradise Valley Storm Drain Rehab Program as part of the proposal. Mayor Mullin questioned whether these improvements were related to the sink hole. Ms. Scramalgia advised the improvements were corrections required to accommodate new repairs to the park. Director White advised the repairs would address concrete sidewalks broken in the repair process, as well as a manhole repair and new turf seed. Ms Scramalgia then moved to Sanitary Sewer. She called Council's attention to the multitude of Water Quality Control Plant ( "WQCP ") projects, including Critical Rehabilitation, Blending Projects, Colma Creek Elimination Project, Blower Replacement Project and other green improvements. She explained the projects collectively totaled almost $7,000,000 for design and construction. Councilman Addiego questioned when the centerfuge rate increase could be expected. Director White responded 3 years. He noted, however, that depending on what happens with flows, the increased rate may or may not be necessary. Mayor Mullin commented it would be a function of the economy. Director White responded that when business activity is strong, flows are up yielding income. Ms Scramalgia next covered Public Facilities where she noted no new major projects. Accordingly, she moved on to Parks noting two types of projects with new appropriations. Common Greens Improvements would total roughly $75,000. The other type included playground replacement projects, for which several grants had been received. Director of Parks and Recreation Ranals advised that in addition to KaBoom, the City was pursuing other grants. She advised the KaBoom grant would assist with some of the Playground rehab at Orange Park, but would not cover the total cost. Mayor Mullin questioned whether the Orange Memorial Park Master Plan had been abandoned in lieu of economic reality. Director Ranals advised the plan was not abandoned at all. She noted acquisition of the Cal Water property was key to processing the plan. Relocation of an active soccer field to the space would free up more park area for development. Grant funding for the acquisition was presently being pursued. Ms. Scramalgia then moved to the Traffic Category where she identified the Grand Avenue SPECIAL CITY COUNCIL MEETING MAY 17, 2011 MINUTES PAGE 4 Magnolia Avenue Signal Project. She noted the project included not only installing traffic signals, but removing arches and storm drains. An all inclusive grant application was being pursued for the project. Councilwoman Matsumoto noted that a project related to the bicycle pedestrian master plan was going to be awarded. Councilman Gonzalez questioned what the miscellaneous traffic improvements category entailed. Ms. Scramalgia advised it referred to improvements that come up from the traffic advisory committee. It also included the costs associated with running BPAC. Councilman Gonzalez questioned whether the Red -light Camera Program was still profitable. Chief of Police Massoni advised that at last report it was. Councilwoman Matsumoto noted three Information Technology Category projects ranging from $25,000 up to $55,000. Mayor Mullin pointed out IT costs in the future might include social media related programs. Director White advised the CIP would be brought to Council for public hearing and action at the second meeting in June. 7. Adjournment. Being no further business, Mayor Mullin adjourned the meeting at 8:09 p.m. Submitted by: Approved: .. 4 _ / ee,„_,744.1). Krista art' clli, Ci Kevin Mullin, Mayor City of Sou 1 , an Francisco City of South San Francisco SPECIAL CITY COUNCIL MEETING MAY 17, 2011 MINUTES PAGE 5