HomeMy WebLinkAboutMinutes 1990-02-21Mayor Richard A. Haffey
Counci 1:
Jack Drago
Gus Nicolopulos
John R. Penna
Roberta Cerri Teglia
AGENDA
ADJOURNED REGULAR MEETING
CALL TO ORDER: (Cassette No. 1)
ROLL CALL:
1. Discussion of a mid-year budget
review.
MINUTES
City Council
City Council Conference Room
City Hal 1
February 21, 1990
ACTION TAKEN
ADJOURNED REGULAR MEETING
7:19 p.m. Mayor Halley presiding.
Council present:
Council absent:
Drago, Nicolopulos,
Penna, Teglia, and
Halley.
None.
City Manager Armas gave an over view
of the mi d-year budget, and related:
that it is a good year - not a great
year, due to increases in sales and pro-
perty taxes; that it was based on conser-
vative estimates and the economy had
proven to be favorable, etc.
Director of Finance Marx provided infor-
mation regarding the status of the
current budget and preliminary estimates
for next fiscal year. She proceeded to
give an in-depth analysis on the infor-
mation in the report (a copy of the
report is on permanent file in the City
Clerk's Office).
City Manager Armas stated that probably
the more significant revenues were prop-
erty tax, and hotel tax to a lesser
extent, and related that the conservative
assumptions made last year would end up
with $10,000,000 as compared to
$9,300,000. He spoke of the hotel tax
for calendar year 1989 having a 74%
occupancy rate, when the anticipated
revenue had been 69%. He stated that in
the third quarter the hotel occupancy
rate was 80%, which he felt to be
surprising, and due to the pricing ele-
ment that made this area more attractive.
Discussion followed: question of whether
Burlingame had experienced a decrease;
that there had been a drop in occupancy
due to the hotel closure from the earth-
2/21/90
Page I
AGENDA ACTION TAKEN
Discussion of a mid-year budget
review - Continued.
quake; that statistics had not been com-
piled to determine if there was a trend
in the upswing in occupancy in this area;
that the Franchise Tax was going up, and
business licenses revenue was decreasing;
that this was do to the 9roupin9 of reve-
nue sources; that the increase in T.O.T.
had nothing to do with Measure C; that
the first payment from Measure C had been
received two weeks ago; that Council was
interested in seeing revenue projections
based on Measure C; that hotel operators
submitted tax payments the month
following the end of the quarter; that
projections would be ready in the Spring
when the budget is presented; the com-
position of the general revenue; that one
strong source of sales tax was attribu-
table to the Price Club, which had not
yet stabilized; that it was too early to
estimate the revenue from Pay'N'Pak; that
there was some growth in retail sales and
business activity; that the City's Sales
Tax was from diversified sources; a
growth in building permits; that
Terrabay's permits were anticipated in
1990 for the residential units;
Councilman Nicolopulos wanted to under-
take a study on the businesses operating
in the City without a business license;
that the City had hired a collection
agency to go after delinquent business
licenses; that the City had hired a con-
sultant on Sales Tax revenue; that the
external auditor had made a recommen-
dation to look at stronger enforcement of
business licenses; that the Fire
Department had contacted every business
in the City, other than large businesses
with multiple business, and found 100
businesses without business licenses;
that the Finance Dept. did not have the
resources to monitor new businesses
coming into the City; that there was a
low cap on employees when charging for a
business license, and Finance wanted to
restructure that and charge a processing
fee; Councilman Nicolopulos wanted a copy
of the Fire Department's report on 100
businesses; Mayor Halley asked the
Director of Finance to put forward a pro-
2/21/90
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A6E NBA ^6T I ON T^KE N
1. Discussion - Continued.
posal to the Council on changes to busi-
ness license fees; that an average
business license fee was $100.00; fund
transfers; that Councilman Nicolopulos
was awaiting a written answer to a list
of questions he had posed to the City
Manager; that an outside consultant was
doing an assessment of computer needs;
interfund transfers; Mayor Halley
suggested setting aside $600,000 or
$700,000 for a long term financing scheme
for a debt service to make capital
improvements to needed public facilities;
setting up a reserve fund for repairs;
that the City had tight budgets in prior
years and could not make needed improve-
ments; Councilman Nicolopulos thought
that transfers from the sewer fund had
been used to rob Peter and pay Paul, and
wanted a complete breakdown of such
administrative costs; Buri Buri Park
expansion; estimated expenditures; pro-
jected salary savings in the Fire Dept.
was due to injuries; Councilman
Nicolopulos wanted a listing of employees
paying their own PERS; policy direction
to staff; that the computer assessment
report would be ready in the Spring for
Council to make some determinations;
catastrophic contingencies; the vehicle
replacement fund, etc.
Concurrence of Council - To set aside
$600,000 or $700,000 for a long term
financing scheme for a debt service to
make improvements to parks, libraries,
and public facilities.
Concurrence of Council - To have staff
look at a two year approach to revenues
and expenditures.
Discussion followed: Police Department
computer needs; Councilmember Teglia had
requested reports on the Fire
Department's fleet, and street cleaning
of the downtown; Councilmember
Nicolopulos requested a report on the
Safety Committee, etc.
2/21/90
Page 3
AGENDA ACTION TAKEN
Part-time and full-time staffing
complement for Library.
3. Project READ Funding.
(Cassette No. 2)
4. Economic Development Strategy.
City Librarian Goodrich gave her staff
report, which responded to prior direc-
tion given by Council (a copy of the
report is on permanent file in the
Clerk's Office).
Discussion followed: ratio of part-time
to full-time employees; benefits to the
public by the change; that there was a
big turn-over in part-time employees;
whether Project Read was duplicating the
School District's efforts to teach people
to read in adult education; that the
School District was turning out illitera-
tes; part-time employees will begin
receiving benefits over the next two
years; that State funding was waning for
Project READ; plan to solicit funds from
the business community; to seek grants;
seek community partnership.
Concurrence of the majority of Council -
To go with a fund raising effort for
$14,000.00.
Mayor Haffey had a philosophical problem
in Project READ being funded by the City.
Concurrence of Council - To go with the
game plan for part-time to full-time
employees.
Director of Economic & Community
Development Costello stated that the
Council last year had started the process
of a more active economic program for the
City (a copy of the staff report is on
permanent file in the Clerk's Office).
Discussion followed: an economic and
business profile based on a completed
survey; a marketing plan to attract busi-
ness; developing a promotional City
brochure; Downtown Central Redevelopment
Projects; enhancing the positive effect
of the City's present, ongoing activity;
samples of other City's promotional
brochures; that the City lost Hospital
Supplies, and $600,000 in sales tax reve-
nue, because the City's image had not
been improved; that there needed to be a
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Page 4
A G E N D A A C T I 0 N T A K E N ~i~-.~ ~' r~ ~ ~:
4. Economic - Continued.
CLOSED SESSION
0
Closed session for the purpose of
discussion of personnel matters,
labor relations, property nego-
tiations and litigation.
ADJOURNMENT:
RESPECTFULLY SUBMITTED,
Barbara A. Battaya, City C]~e'rk
City of South San Francisco
more positive City image projected.
Concurrence of Council - Supportive of
the economic development strategy.
CLOSED SESSION
Council chose not to hold a Closed
Session.
M/S Teglia/Nicolopulos - To adjourn the
meeting to Wednesday, 2/28/90, at 6:30
p.m., Municipal Services Building,
Community Room, 33 Arroyo Drive for the
purpose of a Closed Session for labor
relations.
Carried by unanimous voice vote.
Time of adjournment was 9:40 p.m.
APPROVEp~, ~q
City of South San
~SCO
The entries of this Council meeting show the action taken by the City Council to dispose
of an item. Oral communications, 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.
2/21/90
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