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HomeMy WebLinkAboutSPJT Minutes 1997-06-30SRRA/SRCC (Spec. Jt.) 6/30/97 1 IN THE COUNCIL CHAMBER, CITY HALL OF SAN RAFAEL, MONDAY, JUNE 30, 1997, AT 7:30 PM Special Joint Meeting: Present: Albert J. Boro, Mayor/Chairman San Rafael City Council/ Paul M. Cohen, Councilmember/Member San Rafael Redevelopment Agency Barbara Heller, Councilmember/Member Cyr Miller, Councilmember/Member Gary Phillips, Councilmember/Member Absent: None Others Present: Rod Gould, City Manager/Agency Director Gary T. Ragghianti, City Attorney/Agency Attorney Jeanne M. Leoncini, City Clerk/Agency Secretary SAN RAFAEL REDEVELOPMENT AGENCY 1. RESOLUTION ADOPTING SAN RAFAEL REDEVELOPMENT AGENCY BUDGET FOR FISCAL YEAR 1997/98 (Admin. Svcs.) - File R-103 Administrative Services Director Kenneth Nordhoff presented the final appropriations and budget for the Redevelopment Agency for 1997/98. He noted an information report was discussed during the Agency meeting of June 16th, and Council also had an opportunity to ask questions of staff at the Public Hearings held last week. Mr. Nordhoff reported staff had incorporated all of the projects and operating expenses which were discussed during the previous sessions, and provided Agency with a Resolution to appropriate the funds. Member Cohen pointed out the item on Exhibit "B" referring to the Macy's parking lot, and asked if the $2 million comes back after the Agency sells the land? Mr. Nordhoff stated that was correct. Mr. Cohen noted Mr. Nordhoff had stated earlier in his report that the City would end up with $4 million next fiscal year, and asked if this was inclusive of the $2 million we would get from Macy' s? Mr. Nordhoff stated that it was. Member Heller noted the list of project descriptions included Elementary School Projects, High School Projects, and Community College Projects, and asked if we had already determined what portion the County would get back, and if that amount was already "off the plate"? Mr. Nordhoff reported we had to leave $250,000, noting some of that was already paid this fiscal year, so there was nothing remaining to pay to the County. Member Heller referred to the three long-term options, stating she would like Agency to look at all three of them, and particularly hoped they would explore option No. 3, to see what the Agency can come up with in the way of new tax sources. Executive Director Gould stated this would be imperative to extend the life of the Redevelopment Agency, and he agreed all three options would have to be explored, noting they were not mutually exclusive. Member Phillips referred to the Consolidated Funds Schedule, noting under"Resources" it lists Land Sales of $2,722,514. He asked if $2. 1 million of that was Macy's? Mr. Nordhoff stated that was correct. Mr. Phillips noted that under "Current Expenditures" the Cost of Land Sold, in excess of the sales proceeds, was listed as $3,533,183. He asked if this meant we were selling land beyond what it cost? Mr. Nordhoff stated this was correct, noting in particular staff had projected there would be an acquisition cost of $1,358,000 on Mahon Creek, and reporting Economic Development Director Ours has estimated the sale price on that to be approximately $548,000; therefore, there will be a net, out-of-pocket cost to the Redevelopment Agency for the difference. Mr. Phillips asked if there was any idea when the Agency would see the detail of that? Mr. Ours explained the Redevelopment Agency was buying the Railroad right-of-way property, the property which goes around the Corporation Yard and the Shamrock property, and then selling a portion of that property back to Shamrock for $548,000. Therefore, we are buying the property for $1.3 million, keeping part of the property for our own future flood control work, and selling a portion of the property back to Shamrock. Mr. Ours stated we have already presented an Offer to Purchase to the Railroad, but he does not know how long it will take for the Railroad to respond. He stated staff hoped to be able to come before the Agency within the next couple of months with full details regarding this purchase. Mr. Ours pointed out the Agency did not even want to purchase the land around Shamrock, but the Railroad insisted on one single purchase, stating they did not want to deal with two purchasers, and asking the Redevelopment Agency to buy the entire thing, and then sell a portion of the land back to Shamrock. SRRA/SRCC (Spec. Jt) 6/30/97 1 SRRA/SRCC (Spec. Jt.) 6/30/97 2 Member Cohen noted Mr. Ours had stated the Agency was keeping a portion of the land for future flood control work, and asked if any of that was related to the enhancements to Mahon Creek, or the mitigations to Andersen Drive? Mr. Ours stated it was not related to the mitigations to Andersen Drive, but it did include the enhancements on Mahon Creek. He explained the property runs all the way from Second Street to Lindaro, and runs along the south side of the creek, pointing out some of the Public Works Department's sheds at the Corporation Yard are built on a portion of this property. Member Cohen moved and Member Miller seconded, to adopt the Resolution establishing appropriations for the Redevelopment Agency for fiscal year 1997/98. RESOLUTION NO. 97-28 - RESOLUTION ADOPTING THE BUDGET FOR THE FISCAL YEAR JULY 1, 1997 - JUNE 30, 1998 AND PROVIDING FOR THE APPROPRIATIONS AND EXPENDITURE OF ALL SUMS SET FORTH IN SAID BUDGET (IN THE AMOUNT OF $22,694,666). AYES: MEMBERS: Cohen, Heller, Miller, Phillips & Chairman Boro NOES: MEMBERS: None ABSENT: MEMBERS: None SAN RAFAEL CITY COUNCIL 1. PUBLIC HEARING - TO CONSIDER A REQUEST BY MARIN SANITARY SERVICE FOR A RATE INCREASE FOR REFUSE COLLECTION AND RECYCLING SERVICES, AND ADOPTION OF RESOLUTION AMENDING AGREEMENT SETTING RATES (Admin. Svcs.) - File 4-3-32 Mayor Boro declared the Public Hearing opened, and asked for the staff report. Administrative Services Director Nordhoff reported a review of the rate applications for Marin Sanitary Service's rate structure for 1997/98 had been presented to Council at their meeting of June 16th. He noted at that time they were presented with a detailed review of the elements which necessitate these rate increases, pointing out there are several elements included within the Operating Costs which have contributed to that portion of the increase. In addition, the Council instituted a Franchise Fee last January, although it chose to delay the implementation of that cost until such time as the rate review process could be completed. Mr. Nordhoff stated both the Operating Costs and the Franchise Fee have been factored into the rate request, and were used to determine the funding and the rates now being presented to Council. Mr. Nordhoff stated staff had worked with the consultant for Marin Sanitary Service to provide the Comprehensive Rate Schedules now being presented as part of the staff report, noting the last few updates were done only when the affected rates were changed, and he decided to provide a comprehensive schedule so everyone would be clear as to what all the rates of service are. Mr. Nordhoff reported there has been a change in the "Practices" section, noting that traditionally we have received, at no cost to the City, some level of dumping fees; however, under this structure, we are now going to be billed for those fees. He noted the report may have incorrectly made reference to the fact that this was a "no cost" item, but in fact, the City could be billed up to $129,000 next year for those services. Mr. Nordhoff stated he had provided exhibits which show San Rafael is extremely competitive, noting that when comparing these rates to the rates of the Las Gallinas District to the north, we are very close in both the residential and commercial rates. He pointed out we are a little higher in one area, and a little lower in the other, which he felt showed we were right in the marketplace. Mayor Boro referred to the $129,000 to be charged, and asked if this had been budgeted in the City Budget? Mr. Nordhoff replied that it had, stating staff has accounted for receiving the full amount of the franchise fee, $614,000, anticipating there would be a $129,000 dumping cost; therefore, Net Revenues become $435,000. Councilmember Cohen stated he understood the language in the agreement, but in the context they are discussing now, he wondered whether the language in the amendment being provided makes sense, or is necessary? For example, he noted the language being provided to Council states the agreement shall be amended to read, "Company shall allow the City to dump up to $129,000 in material per year, at its Resource and Recovery Center, for which City will be billed". He asked what would happen if the City wanted to dump $130, 000 worth of material? He stated, at this point, the language as it is written does not make sense. He stated it made sense before to state the City could dump up to a certain amount for free, and if we went over that amount, then presumably we would have been asked to pay for the remainder. He asked why the new language does not simply state the City will be allowed to dump there, and pay the rates for what SRRA/SRCC (Spec. Jt) 6/30/97 2 SRRA/SRCC (Spec. Jt.) 6/30/97 3 we dump? Mr. Nordhoff stated this could be done, reporting they had attempted to make an allowance for what was estimated, based on last year's cost of approximately $125,000, noting as it became later in the fiscal year, if they felt the City was going to exceed this figure, Mr. Nordhoff would have to speak to the Public Works Department and make some kind of determination about how this would be handled. Councilmember Cohen noted Mr. Nordhoff's concern was merely a budgetary one, and asked why the dollar amount had to be in the contract? City Attorney Ragghianti stated this did not have to be in the contract, suggesting the contract read, "The Company shall allow the City to dump material at its Resource and Recovery Center, for which the City will be billed". Mayor Boro noted Mr. Nordhoff had stated it would not make sense to charge the Franchise Fee and then not have the dumping up to a certain amount of money. He stated it seemed this would also impact the rate, as well, and asked if that was the driving force? City Manager Gould stated that was a primary consideration, noting there were many other cities that would charge a 10% Franchise Fee and have dumping rights at a facility within their jurisdiction. He stated our proposal was done to mitigate the other way. Mayor Boro clarified this actually reflected an attempt to keep the rates lower and impose the Franchise Fee, and Mr. Nordhoff stated that was correct, noting it had a value of approximately 2% of the rates. There being no public comment, Mayor Boro closed the public hearing. Councilmember Miller moved and Councilmember Cohen seconded, to accept the rate request as proposed, and adopt the Resolution establishing the rates and indemnification for fiscal year 1997/98. RESOLUTION NO. 9868 - RESOLUTION AUTHORIZING THE EXECUTION OF AN AMENDMENT TO THE AGREEMENT BETWEEN THE CITY OF SAN RAFAEL AND MARIN SANITARY SERVICE TO SET MAXIMUM RATES AND FEES FOR REFUSE AND RECYCLABLE MATERIAL COLLECTION AND DISPOSAL SERVICES AND TO PROVIDE FOR INDEMNIFICATION (30TH AMENDMENT TO AGREEMENT). AYES: COUNCILMEMBERS:Cohen, Heller, Miller, Phillips & Mayor Boro NOES: COUNCILMEMBERS:None ABSENT: COUNCILMEMBERS:None 2.RESOLUTION ADOPTING CITY OF SAN RAFAEL BUDGET FOR FISCAL YEAR 1997/98 (Admin. Svcs.) - FiIP R-5 Administrative Services Director Nordhoff stated this was the fifth opportunity Council has had for discussion regarding the budget, noting two earlier reports had been discussed during previous Council meetings, addressing the financial impacts and Estimates and Assumptions, and Public Hearings had also been held specifically to discuss Goals and Objectives. Pointing out a couple of changes that had been made since the last discussions, he reported he had incorporated information regarding the Parking District at the request of Mayor Boro. He noted there had been some concern about making sure there was full understanding of what is going on, so he has attached a schedule. In addition, as Councilmember Cohen pointed out, staff has included the Franchise Fees, as well as the cost of dumping, and the net difference of $485,000 has been placed in the Street Maintenance Fund, specifically earmarked for Street Resurfacing projects. Mr. Nordhoff stated that at their last meeting Council had given the City Manager discretion to spend up to $500,000 for one-time Capital Improvement projects, and he noted five projects have been incorporated into the total figures. He reported those projects included the pay-off of the Data General System under the BRC contract, some additional dollar investment for Information Technology, a partial amount of money to complete the General Plan revision, with the balance being split between Facility Maintenance projects and the remodeling of the upstairs area where the Community Development and Public Works Departments are housed. Mr. Nordhoff stated staff had not made any other significant changes, noting they have spent their time reviewing the final information, working with the Departments, and making sure their Revenue estimates and Final Expenses were tied down. Mayor Boro referred to Schedule 1 regarding the Parking District, noting he was disturbed by a couple of things that appeared to be happening. He stated it had been his understanding that we started with one Foot Patrol Officer and then went to two, that we had always budgeted for two, and then last year we budgeted a third Officer. Mayor Boro stated the budget did not seem to reflect this, noting it almost seemed as though we were not budgeting for two Foot Patrol Officers in 1995/96, as we go from $319,000 to $439,000, which is the equivalent of two people, but he did not believe we had added anyone to this operation. SRRA/SRCC (Spec. Jt) 6/30/97 3 SRRA/SRCC (Spec. Jt.) 6/30/97 4 In addition, Mayor Boro noted the City had raised the parking meter fees last Fall, which would have been during the 1996/97 budget. Mr. Nordhoff stated staff had actually estimated that revenue to climb to $650,000, but as he tracked this item throughout the year, he recognized that was not the case, noting there could be a variety of factors that contributed to this. He reported he was estimating it would actually come in at $590,000 for this year, versus the $650,000 he had originally estimated. Mr. Nordhoff stated if Council had made a decision to fund another Officer, with the expectation of reaching $650,000, it would not work. Mayor Boro stated there was another issue, recalling Council had found out we never truly had a second Officer budgeted, even though they believed we did. Public Works Director Dave Bernardi stated he did not recall that, but he did remember there had been a snafu when the wrong parking meter parts were sent to the City and had to be returned, causing a two month delay, as well as the time it took to switch the parking meters over, which also set us back. Mayor Boro stated the $607,000 budgeted for this in 1997/98 was a long way from the $650,000, noting this was basically the difference in the overrun. Mayor Boro asked if it was correct that the City had not increased the Parking Fees as yet, and Mr. Nordhoff stated that was correct. Mr. Nordhoff also pointed out the only staff addition was the additional Officer last year, noting we have continued to fund five Enforcement Officers and part of the Public Works Maintenance staff, as well as some billing costs associated with the Administrative Services Department. Mayor Boro stated he had thought Mr. Ours was funding part of the clean-up work, or something else being done through the Redevelopment Agency down at the garage on "B" Street. Mr. Nordhoff reported there are some attendants Mr. Ours manages who are also part of the cost charged to this budget. Councilmember Heller asked if we increased the parking fines, would that go directly into this budget? Mr. Nordhoff stated that was correct. She asked how much a $1.00 to $3.00 increase would amount to per year? City Manager Gould stated it would make the fund self -balancing. Mr. Nordhoff stated as he recalled, $3.00 would generate approximately $80,000 or $90,000 per year. Councilmember Heller referred to the $485,000 for Street Resurfacing, and asked if there was a footnote on this account designating that when we allocate that money it will be allocated to the southern half of the City only, since we are not being paid anything from the northern part of the City, and their streets should not be resurfaced faster? Mr. Nordhoff reported the Street Maintenance projects were divided between two places. Our Gas Tax Funds, which have traditionally paid for street resurfacing, have identified a number of projects which are common throughout the City. The Street Maintenance Fund, which is in a separate account and will be getting the Franchise Fees, will be designated only for things below the hill. Mr. Bernardi stated they were working to prepare the bid sheets so it will be very clear to any auditor coming in that the extra monies are for certain streets in the southern area. Councilmember Phillips asked what "Transfer Out" represented, noting it began in 1996/97, and did not exist in 1995? Mr. Nordhoff explained this was the recovery of the cost of the billing services and overhead related expenses from the General Fund. Mr. Phillips asked if Mr. Nordhoff would be bringing something before the Council, such as increased fines, to balance this? Mr. Nordhoff stated this would come as part of the Business Cost Study, noting it had been discussed at the study session last week, and they were in the process of surveying information so Council will have a place for checks and balances with respect to staff's recommendations. Mr. Gould noted a study session on the Business Cost Study would be scheduled for either July 28th or 29th, at which time the Business Cost Study would be complete, and Council would have the comparison data they would need to evaluate the policy changes. Mayor Boro referred to the Parking Service District, asking Mr. Nordhoff to recap the number of people and the salaries and ranges this was funding from 1994 forward, so Council could see exactly who they were and where they were, because to go from $284,000 to $489,000, when theoretically we only added one Police Officer, seemed a pretty hefty increase. Mr. Nordhoff reported we had to look not only at what was funded or budgeted, but also at vacancies and other things that contribute to what looks like lesser expenses in a particular year, but in fact may not be if all the positions were filled. Mayor Boro stated it was his impression we did not have that position funded, but we were paying for it with Overtime, and probably paid more for it than we should have. He stated we generally had two Police Officers down there, one permanent and one on an Overtime basis, until we got into the issue of full-time and the concept that came out last year. He stated he was still struggling with this number, and asked Mr. Nordhoff to give Council the history of this. Mr. Nordhoff stated he would research this issue, and present Council with a staffing report. SRRA/SRCC (Spec. Jt) 6/30/97 4 SRRA/SRCC (Spec. Jt.) 6/30/97 5 Councilmember Phillips moved and Councilmember Cohen seconded, to adopt the Resolution approving the budget for fiscal year July 1, 1997 through June 30, 1998, and providing for appropriation of expenditures for all sums set forth in said budget. RESOLUTION NO. 9869 - RESOLUTION APPROVING THE BUDGET FOR THE FISCAL YEAR JULY 1, 1997 - JUNE 30, 1998 AND PROVIDING FOR THE APPROPRIATIONS AND EXPENDITURE OF ALL SUMS SET FORTH IN SAID BUDGET (IN THE AMOUNT OF $46,388,590). AYES: COUNCILMEMBERS:Cohen, Heller, Miller, Phillips & Mayor Boro NOES: COUNCILMEMBERS:None ABSENT: COUNCILMEMBERS:None 3.a.RESOLUTION APPROPRIATING UNAPPROPRIATED REVENUES FOR 1996/97 (Admin. Svcs.) - v;io Q -R b.RESOLUTION APPROVING 1997/98 APPROPRIATIONS LIMIT (Admin. Svcs.) - v;io Q -R Administrative Services Director Nordhoff reported the appropriation of unappropriated revenues for 1996/97 was required by law, and staff had put those numbers together. He pointed out that even though it states this is an appropriation limit, it is really a tax ceiling, a level at which Council can raise taxes under the law. Mr. Nordhoff stated that although the language was a little backward, in essence, that was what we were dealing with, noting it was largely tied to the General Fund. Councilmember Cohen moved and Councilmember Phillips seconded, to adopt the Resolutions appropriating unappropriated Revenues and approving the 1997/98 Appropriation Limit as presented. RESOLUTION NO. 9870 - RESOLUTION APPROPRIATING UNAPPROPRIATED REVENUES FOR 1996/97. RESOLUTION NO. 9871 - RESOLUTION APPROVING 1997/98 APPROPRIATIONS LIMIT. AYES: COUNCIL ERS: Cohen, Heller, Miller, Phillips & Mayor Boro NOES: COUNCIL ERS: None ABSENT: COUNCILMEMBERS:None There being no further business, the meeting was adjourned at 8:05 PM. 1998 JEANNE M. LEONCINI, City Clerk/Agency Secretary APPROVED THIS DAY OF , SAN RAFAEL REDEVELOPMENT AGENCY MAYOR OF THE CITY OF SAN RAFAEL/CHAIRMAN, SRRA/SRCC (Spec. Jt) 6/30/97 5