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HomeMy WebLinkAboutMinutes 1994-06-15 Mayor Joseph A. Fernekes Council: Jack Drago John R. Penna 7-"Roberta Cerri Teglia Robert Yee MINUTES City Council Municipal Services Building Community Room June 15, 1994 359 AGENDA ADJOURNED REGULAR MEETING CALL TO ORDER: (Cassette No. 1) ROLL CALL: PLEDGE OF ALLEGIANCE: 1. Discussion of the Budget. AC_IIQN TAKEN ADJOURNED REGULAR MEETING 7:11 p.m. Mayor Fernekes presiding. Council Present: Council Absent: Drago, Penna, Teglia, Yee and Fernekes. None. The Pledge was recited. Mayor Fernekes stated the Council would go through the preliminary operating budget, beginning with the City Manager's report, an overview of key policy decisions, then go through department by department, beginning with fire services. He stated that he would allow speakers to speak for no longer than five minutes. He stated that Council should be aware of two things: the budget would not be finished tonight and one or two further meetings would be required; there will be a Closed Session in time for the meet- ing to end at 10:00 p.m. Councilwoman Teglia noted that she had been given two budgets in two different binders, had only worked out of the one binder, had not looked at the other binder and, if there are changes between the two, they should be called out. City Manager Wohlenberg related: changes would be highlighted; Council had reviewed some options and policies in February and had ruled at the time, given the fact there was a $1.2 million projected shortfall, to limit expenditures to not exceed the on- going revenues; staff was to put together a budget proposal consistent with that direction; estimated revenues; funds were set out for the special im- provement programs; there is an assumption the State will not divert further funds from the 6/15/94 Page 1 AGENDA ACTION TAKEN 1. Discussion of the Budget - Continued. 6/15/94 Page 2 36O City in the next three years but, with the budget deficit facing the State, he expects that will change; the assumption is that the compensation for the employees will stay the same throughout these three years, which requires a major shift in Council policy; the challenge lays in reaching financial sta- bility. Discussion followed: the budget shows income vs. expenditures and is out of balance by $176,000; the $200,000 debt service was included in the budget, if it is not included, the undesignated reserve will drop to $2.2 million; this was being shown as a revenue in the General Fund and shown going out as an expenditure; using the $250,000 does not equate to a balanced budget; one time revenues include - $165,000 from a rate reduction from PERS; $117,000 is the total of four new revenues; $175,000 is a reimbursement from the Airport for concluding the East of 101 EIR; $50,000 reimburse- ment from the Scavenger Co. and there would also be a Scavenger reimbursement for the rate review; four new revenues in the amount of $117,000 in- clude - changing the business license tax, sidewalk repairs, an agreement with Colma and the Fire Department and miscellaneous revenues; Council- man Drago noted, next year PERS rates are going up and the City was cautioned to set some of the PERS savings aside and not use the money to bal- ance the budget, because it would create a greater deficit next year; Councilman Penna wanted to be able to access budget information from the computer on his own; tough and hard decisions had been made on service levels by the City living within its means; reductions were from not filling vacant positions; there was a 4% vacancy factor built into the budget; there were also savings in materials and supplies; Councilmembers Drago and Teglia felt the 4% vacancy factor had been depleted for next year, because of the number of eliminated positions this year; the current year had been reduced 2% in vacancy factor from the previous year; staff's as- sumptions were unproven concepts, but no one can determine what is going to be in six months, which was why it was important to use actual numbers; etc. Director of Finance Margolis related: she had used conservative estimates so there would not be issues of one time revenues or figures dropping and leav- ing us with a year end deficit; assumes 2 % increase AGENDA ACTION TAKEN 1. Discussion of the Budget - Continued. Councilman Penna left the Meeting: 6/15/94 Page 3 361 in sales tax; recent Supreme Court ruling on sales tax paid by defense contractors and the requirement it be refunded will affect this year's sales tax; the half cent public safety sales tax could be affected by State legislation; a 2% growth in property tax, due to reassessments; $400,000 one-time windfall from delinquent property taxes; T.O.T. inflated 3 %; reduced revenue from motor vehicle tax; the $250,000 revenue includes Scavenger and Airport reimbursements, sewer franchise fee, Scavenger and commercial parking taxes in effect for a year; build- ing fees were fiat until projects came on line; the turn around in interest rates has helped investment income; etc. Discussion followed: whether the Council was comfortable with $30,228,000 in revenues and, if so, Council was going to drive the expenditures downward to have a balanced budget; etc. Councilman Penna left the meeting at 7:58 p.m. Fire Chief Stark presented his budget: repre- sents an overall growth of 7% in the cost of supplies and services; overtime was reduced; expenditures were reduced $150,000+ - from 21 to 20 men; eliminated three vacant positions; asking that the fulltime manager of the paramedics, the EMS Coor- dinator, be restored, because the job was highly technical and needed expertise; $71,000 for the EMS Coordinator position, which will be a civilian, non-safety position, but his request was that it be made a safety uniformed position at the Captain's level in rank and authority, because to hire a civilian at this point would create problems - wherein he would be paid less than the people he supervises; etc. He had evaluated six options to meet Council's goals and developed a multi-year plan with some funda- mental criteria addressing: type of responses were in medical, co-responses and fire; an increase in revenue; reducing costs; refocus resources and use them more effectively; maintain a balance of the full array of services; utilize new and changing technolo- gy; reduction in staffing through attrition; buying a second ambulance and expanding engine company paramedics; turning the paramedic billing over to a professional firm; new defibulators on all fire en- gines; reduce minimum staffing to 19; contract with Colma will generate $25,000; etc. AG_ENDA ACTION TAKEN 1. Discussion of the Budget - Continued. 6/15/94 Page 4 Mr. Ray Green, 380 Newman Dr., stated he was President of Local 1507 and related: he agreed that the EMS Coordinator should not be a civilian; dif- ferences in the population growth, while there was constancy in the number of firemen - 80 in the past 20 years, since the paramedic program came into effect; during that time we have lost an EMS Coor- dinator, a typist clerk, a safety specialist and an emergency preparedness person from the County; originally the paramedic program was not going through because it was too expensive and the Coun- cil decided to use suppression personnel to handle the program, which creates $110,000 of overtime; Council knew this would be an on-going expense throughout the year; the expense has grown to $220,000-$230,000; the history of the overtime has become lost and it has been attributed to sickness or whatever; average sick leave is three occurrences a year - which is not excessive compared to other departments; overtime is what the Chief keeps ham- mering about and they are suggesting minimum manning - which we are against; budget for this year shows EMS Coordinator - zero, but actually there is a parttime one, so it is not a correct figure. He stated that the Union's main concern on the Fire Chief's proposal is the use of quints and he made reference to the Union's submitted report that out- lined their concerns, as well as an article on Half Moon Bay equipment that parallels the Fire Chief's proposal for two quint fire apparatuses. He pro- ceeded to cite those concerns in buying two quints and ended by asking how the Chief was going to provide quicker cardiac service with the slower quints. Mr. Cris Smith, Firefighter, stated he had a serious concern over the reduction in the level of services, because, in 1991, he and his wife lost their home in the Oakland Hills fire. He learned, after that, the City of Oakland had whittled and lessened its fire department, which he wanted to address - not as a firefighter, but as a victim. He related that the Oakland Chief had said a major catastrophe would never occur and, as a result, he and his wife were deposed of everything they owned. He stated that it would bother him a great deal to have that happen here in S.S.F. and would not like to see anyone go through what they have gone through in the last two years, because it was a horrible experience. AGENDA ACTION TAKEN 1. Discussion of the Budget - Continued. RECESS: RECALL TO ORDER: 6/15/94 Page 5 . 363 He stated that, as professionals, they should realize a fire could break out on Sign Hill and the wind could blow the fire down to the new homes or the fact that the San Andreas fault runs right underneath the hills behind us here and could break loose at any time. He stated he would hate to tell people that the firefighters could have saved someone's home if they had the proper equipment and fire personnel - which they did not have due to budget restraints. Councilman Yee stated he received a yellow package as he came in tonight on this subject and wanted the Fire Chief to prepare some sort of a response, an evaluation for the next meeting, then he would know what the comparison is between a quint and a fire truck. He did not want a debate here but maybe at the next meeting, after seeing a response addressing each issue. Discussion followed: whether the savings had al- ready been incorporated into the budget; both the numbers and reductions were incorporated; the paramedic billing would net the City $128,000; if the billing did not go outside they would be adding $163,000 to the deficit; deficit impacts on the three year proposal, if the Fire Chief's proposal was re- jected; the Fire Chief would have a written response at the next meeting; etc. Council adjourned to a recess at 8:57 p.m. Mayor Fernekes recalled the meeting to order at 9:05 p.m. Police Chief Raffaelli presented his budget: $330,000 savings in the reorganization plan; the Secretary to the Police Chief supervises three indi- viduals who make more money than she does and he proposed a seven and a half percent increase; $160,000 in enhancements in revenues; difference is in the elimination of one Lieutenant's position; civilian to be in charge of communications; hire a parttime civilian to do Court duties; one patrol officer position will go vacant; eliminate two offi- cers, one through the Task Force; etc. Discussion followed: Councilman Drago stated that, due to the severity of the budget, he would not con- sider upgrading positions; what was being done with Proposition 172 funds; will be used for reinstitution of EMS Coordinator and technical improvements in AGENDA _ACI!QN TAKEN 364 1. Discussion of the Budget - Continued. Closed Session pursuant to GC 54956.9 (a), the litigation is United Sign vs. City of S.S.F. with the City Attorney, pursuant to GC 54957.6 labor negoti- ations representatives for negotiations on AFSCME Local 1569, Operating Engineers, IAFF Local 1507 (Firefighters) and Management and Confidential Employees. RECALL TO ORDER: .~ ,~DJOURNMENT: the Police Department; using reserve officers as PSTs; Police Chief described screening program for reserves and related he had increased their duties to include undercover stake outs; etc. Director of Public Works Parini described: the organizational structure of his Department; proposal to eliminate four positions; employee backup for sickness and vacation coverage; street sweeping and sewer preventative maintenance work; there will be changes in street repair by pothole patching; etc. Discussion followed: one budget shows a reduction of 6 and the other a reduction 3 positions; the bound budget book is the correct one; the reduction was for four positions and a reduction of $182,000; was the street sweeper charged against the stormwater operations; Council had added storm drainage activi- ty to the stormwater but not the street sweeping; elimination of the debt service for the Corporation Yard to assist in the budget deficit, which was $1,250,000; etc. Director of Parks, Recreation & Community Ser- vices Nagel presented his budget: proposed budget is status quo, with the same positions for parks; building maintenance materials and services up 2 %; the contract for street medians was lower by sub- stantial numbers; Orange Park Expansion mainte- nance cost is $209,000 for 1996-97 over and above current costs and includes labor and material; setting another budget session date; etc. Council adjourned to a Closed Session at 9:57 p.m. to discuss the item listed on the Agenda. Mayor Fernekes recalled the meeting to order at 10:54 p.m., all Council was present, no action was taken. M/S Teglia/Drago - To adjourn the meeting. Carried by unanimous voice vote. Time of adjournment was 10:55 p.m. 6/15/94 Page 6 AGENDA ACTION TAKEN 365 RESPECTFULLY SUBMITTED, Barbara A. Battaya, City Clerl~_~ City of South San Francisco APPROVED. The entries of this Coun~:il 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. 6/15/94 Page 7