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HomeMy WebLinkAboutCC Minutes 1998-06-01SRCC MINUTES (Regular) 6/1/98 Page 1 IN THE COUNCIL CHAMBER OF THE CITY OF SAN RAFAEL, MONDAY, JUNE 1, 1998 AT 8:20 PM Regular Meeting: Present: Albert J. Boro, Mayor San Rafael City Council Paul M. Cohen, Councilmember Barbara Heller, Councilmember Cyr N. Miller, Councilmember Absent: Gary O. Phillips, Councilmember Also Present: Rod Gould, City Manager Gus Guinan, City Attorney Jeanne M. Leoncini, City Clerk OPEN SESSION: Mayor Boro announced Closed Session items. CLOSED SESSION: la. Conference with Legal Counsel - Anticipated Litigation Significant Exposure to litigation pursuant to Government Code Section 54956.9 (b) (3) (c) Tort claim of Gary & Ann Kaye lb. Conference with Real Property Negotiator (Government Code Section 54956.8) Property Address: Terrace Lane (Easement), San Rafael Negotiating Parties: City of San Rafael, Christopher and Carter Bradshaw, Kimball and Michelle Kaufman, Leonard and Judy Stein, and Richard D. Murphy, Trustee. Under Negotiation: Instructions to negotiator with respect to price and terms. Assistant City Attorney Gus Guinan announced no reportable action was taken on items la and lb. ORAL COMMUNICATIONS OF AN URGENCY NATURE: PM None. CONSENT CALENDAR: 8:15 Councilmember Miller moved and Councilmember Cohen seconded, to approve the following Consent Calendar items: ITEM RECOMMENDED ACTION 2. Resolution Authorizing Execution of an RESOLUTION NO. 10219 Agreement With Leslie A. Thomsen, Attorney, as the City's Substitute Counsel in Connection With the Development Approval Process for the Dominican College Development Project (CA) - File 4-3-343 x 4-3-310 x 4-3-318 3. City Work Plan Review (CM) - File 237 4. SECOND READING AND FINAL ADOPTION OF ORDINANCE NO. 1726 - An Ordinance of the City of San Rafael Amending the Zoning Map of the City of San Rafael, California, Adopted by Section 14.01.020 of the Municipal Code of San Rafael, California, so as to Reclassify Certain Real Property From the Planned Development (PD 1718) District to the RESOLUTION AUTHORIZING EXECUTION OF AN AGREEMENT WITH LESLIE A. THOMSEN, ATTORNEY, AS THE CITY'S SUBSTITUTE SPECIAL COUNSEL IN CONNECTION WITH THE DEVELOPMENT APPROVAL PROCESS FOR THE DOMINICAN COLLEGE DEVELOPMENT PROJECT. Accepted report. Approved final adoption of Ordinance No. 1726. SRCC MINUTES (Regular) 6/1/98 Page 1 SRCC MINUTES (Regular) 6/1/98 Page 2 (PD 1726) Planned Development District to Allow Retail Uses on Parcels 5 and 6 and Food and Beverage Service Establishments and Amend the Planned District Text Relating to Trip Generation Rates and Use Square Footages (RE: ZC97-10, 1615 East Francisco Boulevard, AP Nos. 9-320-40 through 45) (Shoreline Center) (CD) - File 10-3 x 10-5 x 10-7 5. Resolution Approving Baypoint Lagoon Apartments RESOLUTION NO. 10220 Request for a Waiver of Fees (CD) RESOLUTION AUTHORIZING A - File 5-1-292 x 229 WAIVER OF BUILDING PERMIT FEES, BUT NOT THE WAIVER OF TRAFFIC MITIGATION FEES FOR BAYPOINT VILLAGE APARTMENTS (345 CATALINA STREET). 6. Purchase of Staff Vehicles for the Fire RESOLUTION NO. 10221 Department (FD) - File 4-2-294 x 9-3-31 RESOLUTION AUTHORIZING THE PURCHASE OF FOUR (4) STAFF VEHICLES FROM THE STATE OF CALIFORNIA DEPARTMENT OF GENERAL SERVICES, PROCUREMENT DIVISION FOR THE AMOUNT OF $126,777.24. 7. Resolution of Appreciation to Forrest Craig, RESOLUTION NO. 10222 Deputy Fire Marshal (FD) - File 102 x 9-3-31 RESOLUTION OF APPRECIATION TO FORREST CRAIG, DEPUTY FIRE MARSHAL. 8. Approval of Final Map of Vista Marin RESOLUTION NO. 10223 - Subdivision (PW) - File 5-1-332 RESOLUTION APPROVING FINAL MAP ENTITLED, "MAP OF VISTA MARIN", SAN RAFAEL, CALIFORNIA. 9. Report on Selection of Consultant for Freitas RESOLUTION NO. 10224 Park Rehabilitation Project (PW) RESOLUTION AUTHORIZING THE - File 4-3-344 x 2-1-29 x 12-5 x 9-3-65 x 9-3-66 DIRECTOR OF PUBLIC WORKS TO SIGN A PROFESSIONAL SERVICES AGREEMENT WITH KELLER MITCHELL & COMPANY IN AN AMOUNT NOT TO EXCEED $57,500 (AS CONSULTANT FOR FREITAS PARK REHABILITATION PROJECT). AYES: COUNCILMEMBERS: Cohen, Heller, Miller & Mayor Boro NOES: COUNCILMEMBERS: None ABSENT: COUNCILMEMBERS: Phillips SPECIAL PRESENTATION: 10. PRESENTATION BY SAN PEDRO FIFTH GRADE CLASS ON "VISION FOR THE CANAL" (CD) - File 10-2 Cindy Bradley, teacher at San Pedro Elementary School, presented a model of the Canal area, which had been designed and built by her fifth grade students. She reported her class had participated in the "Architects in the School" program, working with Architect Anne Laird -Blanton of San Rafael. Mrs. Bradley stated that when she met with Ms. Laird -Blanton to decide on a SRCC MINUTES (Regular) 6/1/98 Page 2 SRCC MINUTES (Regular) 6/1/98 Page 3 focus, she had hoped they could tie the student work into their class study of equity, and show that all people could have access to environmental beauty. Thanks to Ms. Laird-Blanton's encouragement, the students began to dream and propose change, and now believe their dreams can come true. Mrs. Bradley hoped the City would support the students, and help them create a better community for their families, and for all of us. Mrs. Bradley introduced students Octavio Gocobachi, Anastasia Gallardo, Cinthya Hernandez, Marisol Zamarripa, and Katherine Stone, who explained the various aspects of the model they had designed. The students explained they had to learn how to use scale in order to work on the model, and Architect Anne Laird -Blanton taught them how to use scale by having them measure and draw themselves on graph paper. The students displayed the models of themselves they had drawn. The students reported historian Lionel Ashcroft visited their classroom and showed them slides of San Rafael and the Canal Area. The students were then given individual maps of the Canal area, which they colored to show the water, their homes, parks, schools, and businesses. They took photographs of their favorite places and buildings, and of "things that do not work", such as garbage, drugs, graffiti, and pollution, designating those places on their maps in black. They also saw slides of a bike path and recreation area being built in San Jose, California. The students created an imaginary city on their maps, discussing what they wanted the Canal area to have in the future, and including those things for their model that were chosen as being most important to them. The students divided into groups, and one group made cars, boats, houses, bridges, and people out of clay; one group made trees out of tissue paper and pipe cleaners; one group made maps for the model and mounted them on cardboard, showing parks, beaches, houses, businesses and schools; one group created a bike path through the Canal area, and used bridges to connect to Montecito and Point San Pedro Road, so they could bike to school and to stores; and one group drew plans and then constructed the model. The students noted they had included a mall, as there is no big shopping or recreation center near the Canal area for those who do not have cars. They created a three story mall with an ice rink, movie theatres, a swim center with water slides, shops, beauty salon, arcade, food court, a glass ceiling on the top level, which can be opened on sunny days, and a climbing rock, which reaches from the lower level to the top of the building. The students stated one of their hopes had been to be able to present this model to the City Council and Planning Commission, and thanked Council for allowing them to do that. They hoped the model would encourage the City to make these changes in the Canal area, so the people in the Canal would have a better place to live. On behalf of the Council, Mayor Boro stated he was very proud to see the model, noting it was a great exhibit, and would be used as input for the update of the City's General Plan. He thanked the students for a wonderful job, and presented Mrs. Bradley with a City flag and City pin, and the students with City pins. OLD BUSINESS: 11. PRESENTATION OF DRAFT 1998/99 BUDGET, PLUS SERVICE OPTIONS (Admin. Svcs.) - File 8-5 City Manager Gould reported Administrative Services Director Nordhoff and his staff had worked with the Department Directors to present the status of the City's financial condition, noting they were working from the assumption that Council's first priority in the budget year would be to maintain the existing levels of service. Mayor Boro clarified Council would be discussing the presentation tonight, and then the budget would be finalized during the two Budget Hearings on June 23rd and 29th, with adoption of the budget on July 6th. Mr. Gould stated that was correct, although staff would like some direction at this time, and would seek further direction at the next meeting, noting this was a budget building process. Administrative Services Director Nordhoff stated this report was very similar to the study session on the budget held May 18th, noting this budget was essentially a "steady service" budget. He pointed out there SRCC MINUTES (Regular) 6/1/98 Page 3 SRCC MINUTES (Regular) 6/1/98 Page 4 were two key elements in developing every budget, establishing the Council's priorities, which were revised in April, as well as continuing to use our fifteen Financial Management Policies, which are the foundation for developing the budget. Mr. Nordhoff described structural changes from the last meeting. First, the City became self-insured for dental insurance in January of this past year, and because of that, a separate fund has been established. He explained each full-time employee is charged a rate for the dental program, and that money is put into a fund to cover claims and administrative costs. He noted this was something new going into 1998/99. Second, Mr. Nordhoff reported that after discussions with Fire Chief Marcucci, they have segregated out the Paramedic/Emergency Medical Service Program. He explained a majority of these costs are funded through a special tax, and some of them are also funded through third -party billing for transportation services. Mr. Nordhoff stated they felt it was important to show what the full cost of running this program was, and the revenues that are generated for it, so Council and the community can have a clear picture of exactly what their taxes are paying for. In addition, Mr. Nordhoff referred to Exhibit E of the staff report, which contains a listing of personnel changes amongst the various departments over a four-year period. Discussing revenue trends, Mr. Nordhoff recalled that several years ago the State shifted 26% of the local property taxes, which we no longer get, and do not anticipate getting back going into next year. He reported that up through 1997/98, that total amounted to $5,389,000 of lost local revenues, which the City has been unable to allocate for programs and Capital needs, and he anticipates losing an additional $1,129,000 next year. In addition, he stated there was presently a threat in Sacramento to either reduce or eliminate Vehicle License Fees. Mr. Nordhoff noted this was currently the City's third largest source of revenue to the General Fund, which is estimated to be $2.1 million next year, and amounts to 6.5% of our General Fund revenues. He reported he had spent a day in Sacramento, as had the Mayor, Police Chief Sanchez, Chief Marcucci, and City Manager Gould, and they all came away realizing it was likely something was going to occur, although it was not clear what that would be. He stated they had built the budget under the assumption that these revenues would continue; however, should they become aware of information that they will not, staff will come back before Council, and make adjustments accordingly. Reporting on major tax sources, Mr. Nordhoff noted we were in the throes of a very strong economy, and we were seeing strong increases in our Sales Tax, noting staff estimated them to be up 7% this year, and looking ahead to next year, up another 4.58%, or approximately $565,000. Mr. Nordhoff reported Sales Tax was getting close to $13 million, representing approximately 40% of the General Fund revenue, and noting it continues to become more and more necessary in terms of funding our operations. Mr. Nordhoff reported Property Taxes, holding aside the loss mentioned earlier, showed an approximate 3% growth, up approximately $190,000 going into next year. He re-emphasized that while Property Taxes would seem to generate a lot of money, even a large construction project valued at $10 million would generate only approximately $12,000 to the City, which might pay for 1/6 of a Police Officer position. He pointed this out to show how much new Property Tax we would have to create in order to fund increased levels of service. Mr. Nordhoff stated, assuming our Motor Vehicle Fees stay with us, they should be up approximately 4% heading into the coming year, but noted we would have to wait and see how that goes. Mr. Nordhoff stated there were several other major tax sources, such as property transfer tax, hotel occupancy tax, and business license tax, and he sees those as being up, collectively, approximately 8% going into next year. He noted they were seeing a strong surge in the Transfer Tax, which is the tax paid upon transfer of title, or sale of property. He pointed out we were in a market where that is happening a lot and, therefore, it was generating a lot of revenue. Mr. Nordhoff reported there would be a modest decline in our Franchise Fees, due to utility deregulation. He noted electric rates were cut 10%, as of the end of March, and because the City's revenues are based upon gross sales of electricity, it was anticipated our revenues in that area would decline heading into next year. Referring to Expenses, Mr. Nordhoff covered major elements that were fairly universal across all the funds and activities of the City. He reported most of the bargaining groups were entering the final year of a three-year contract, noting compensation increases ranging from 3.4 to 4.4% were written into those contracts and, therefore, those costs had been built into the budget, where appropriate. In addition, a cost of living adjustment of 3.4% has been provided, which was tied to the CPI (Consumer Price Index) in the San Francisco Bay Area. He stated they had allowed for SRCC MINUTES (Regular) 6/1/98 Page 4 SRCC MINUTES (Regular) 6/1/98 Page 5 growth, in terms of Operating Expenses, and Capital Outlay for small equipment types of purchases, and allowed the Departments to move that money around within their budgets where they felt it was most appropriate, within the 3.4% guideline. Mr. Nordhoff noted, as Mr. Gould had mentioned, we are in a "steady state" service level budget; however, since January the Council had done such things as approving the Community Oriented Policing Program, and because of that, staff was asked to employ a Sergeant, and that position has been built into the budget. Council also approved the hiring of an additional Engineer to address the traffic, which has also been built into the budget. In addition, staff has included a half-time assistant for the Fire Department, as well as a reduction of one full-time and one half-time Public Works Department staff members, who had been working on Andersen Drive on a contract basis. He noted those employees were no longer factored into the budget. Mr. Nordhoff stated another major impact to the budget was the City's retirement contributions. He reported they had incorporated the rates which were done through the actuarial process by the County last fall, which will translate into an approximate $500,000 reduction in retirement contributions, or roughly 15% of where we are today, noting $359,000 of those reductions would benefit the General Fund. He stated they were anticipating rate increases to the City's Liability and Worker's Compensation Funds of approximately $97,000. Mr. Nordhoff referred to the General Fund, which he explained was the City's major operating fund, and includes all of the City's major services, such as Parks, Library, Police, Fire, and Administration. He reported they had estimated the appropriations, or budget, to be slightly over $30 million, which he stated would include a full year of running the Library programs, and keeping the Planning staffing Council approved last Fall. He noted $80,000 from retirement savings had been set aside, in part to deal with the rate fluctuations, recalling several years ago the City was caught short by a fairly significant increase. Therefore, they have established a $300,000 reserve, so should that occur in future years, beyond 1998/99, we will have some opportunity, and some money, to help mitigate that kind of change. Mr. Nordhoff reported they were also transferring $80,000 into the Americans with Disabilities Act (ADA) Fund, where the City is attempting to meet a number of Capital needs, noting they have earmarked that money for sidewalk wheelchair ramps in the coming year. Mr. Nordhoff stated a portion of General Fund monies, particularly taxes, support the City's Street Maintenance and Street Cleaning programs, as well as partially funding the Recreation and Storm Drain activities. Mr. Nordhoff reported they were holding several types of reserves, which he stated was necessary and prudent financial management. He recalled three years ago the City received $215,000 in Property Taxes, related to the valuation and assessment of the cable television infrastructure; however, he reported this has been the subject of a lawsuit since 1988, and they were holding that money aside in case the lawsuit settles, and we need funds to settle that claim. Mr. Nordhoff recalled last year there had been surplus monies, and a portion of that was used for one-time items. He reported $165,000 of that surplus remains, noting City Manager Gould would address the use of these funds for one-time items later in the meeting. Mr. Nordhoff stated they were also holding aside monies for Revenue Sharing, pursuant to the Memorandums of Understanding and agreements with the bargaining groups, so the City can meet its Policy Objective of compensation levels for the entire staff of the City. Touching on a few other funds, Mr. Nordhoff recalled that when the draft of the Five -Year Financial Forecast was reviewed, the largest unmet need was obviously the City's infrastructure, which related to everything from medians to public buildings, streets, sidewalks, storm drains, bridges, and the like. He noted that report had identified $5.6 million, above and beyond our spending levels, in order to maintain the City's infrastructure at an adequate level. Mr. Nordhoff pointed out there was approximately $2 million in the budget for Capital needs, approximately $1,385,000 for street projects, $147,000 for some portion of our building maintenance, and $600,000 for storm drain projects. He noted that while these may seem like large amounts of money, when compared to the actual results in the Five - Year Forecast, they really were not adequate. Mr. Nordhoff reported Development Impact Fees are collected for traffic mitigation and park purposes, and noted staff was setting aside money to rehabilitate the Hoffman ballfields, to do work at Boyd Park, and for the SRCC MINUTES (Regular) 6/1/98 Page 5 SRCC MINUTES (Regular) 6/1/98 Page 6 rehabilitation of Freitas Park. He reported they would be using a significant amount, approximately $3.9 million, of Traffic Mitigation money, the bulk of which would be to complete the East San Rafael changes approved recently by the Council, as well as the Second Street widening project, which is coupled with the Fair, Isaac project. Mr. Nordhoff noted the Parking Services District was the one fund they continued to struggle with. He stated the expenses for enforcement, foot beat Officers, citation processing, and general maintenance exceed the current revenue sources. He felt it was important to note that the City was estimating to spend $690,000 worth of grant based monies for a variety of programs, and were these grants not available, either these programs would not exist, or they would have to be funded in some other manner. Mr. Nordhoff stated the good news was that we could sustain our current levels of service, and he believed there was even room to make some modest adjustments. Referring to Capital Needs, he pointed out Exhibit C of the staff report identified a variety of services the Department Directors felt were important, noting they had put this list together by working with Management staff. Mr. Nordhoff reported we presently have $115,000 of discretionary money the Council could choose to apply to a number of those options. He recalled there had been a discussion during the meeting of May 18th regarding the Paramedic Tax, and noted if Council chose to do that, which has been approved by the voters, that would generate another $140,000, because there is a cap in place of $.05 per square foot (for commercial), and this money could also be used for discretionary funding. Mr. Nordhoff reported there was approximately $165,000 remaining to fund one-time needs, which were identified in Exhibit D. In summary, Mr. Nordhoff reported all the funds were balanced heading into next year, noting he and his staff had some final refinements to do in terms of Capital Projects and some minor fund modifications, particularly in the areas of grants; however, they did not see the figures presented in Exhibit A altering very much. He stated the total figure of $46 million looked less than where we actually are this year, because they have knocked off a fair number of Capital Projects and, therefore, see that budget declining into next year. Mr. Nordhoff reported after taking direction this evening, staff would be back before Council on June 15th with a shorter list of options. He noted June 23rd and June 29th had been set aside for each department to come forward and present their goals and objectives for the coming year. He noted it was his anticipation that after this was accomplished, we would be able to adopt the budget on July 6th. City Manager Gould referred to Exhibit B-2, stating he had made some assumptions of additions to the current budget, which he believed Council would easily approve, because they were fairly straightforward. He reviewed the following with Council for their concurrence. He noted the City had been underfunding the fuel used to power the City's fleet of vehicles by approximately $18,000 per year, and short of eliminating vehicles, he believed there was no choice but to increase the budget accordingly. Therefore, he had requested that sum be placed into the budget, to represent the current level of service. Similarly, he noted Council had recently approved, and seen implemented, the decorative street tree lighting along Fourth Street. He reported that comes with an ongoing cost of $10,000 for additional energy costs to keep the twinkle lights going year round. Regarding signal maintenance, Mr. Gould reported the number of traffic signals the City owns and controls was being increased this year from 78 to 87, partially as a result of Andersen Drive, and with that would come an additional cost for the City's Contract of Services of $19,600. He noted the Andersen Drive landscaping involved a two-year contract to maintain the landscaping that has been implemented, reporting the contract would lapse at the end of this coming fiscal year, and to finish it out would require another $7,000. He reported the following year, when the City assumes this cost, if we were to contract with someone else, or employ someone to take care of the landscaping, it would cost approximately $42,000 to continue the landscaping and maintenance along Andersen Drive. Mr. Gould requested Council's affirmation of a policy decision. He reported it had been a decade since the City had done a full-blown analysis of its road work and road repair needs. He explained that with a Pavement Management System, testing is done of the major roads, arterials, and side streets, and a listing is made of what needs to be done to the streets, and when, in order to maintain a level of service. Mr. Gould stated staff was suggesting it was time for the City to revise and update its Pavement Management System, noting that although the need for road resurfacing and preventive maintenance far outstrips our abilities to fund, it makes it SRCC MINUTES (Regular) 6/1/98 Page 6 SRCC MINUTES (Regular) 6/1/98 Page 7 that much more important that we be very strategic in where we place our limited resources. Therefore, with Council's concurrence, he recommended taking $100,000, which would otherwise have been used next year for paving, and putting it toward an updated and modern Pavement Management System, noting the technologies and techniques had improved during the last decade, and he believed it made a lot of sense for the City to have a very strong game plan regarding where we are going to put our scarce road money in the future. Mayor Boro asked if this was a one-time charge, and Mr. Gould stated it was. Mayor Boro noted an additional $90,000 from the Paving Fund was also being recommended to fund two positions, and he asked if that would be on an annual basis? Mr. Gould stated that was correct. He clarified the $100,000 would be a one-time charge for the study, and then when we get to the additional street maintenance workers, that would be ongoing expense. Mr. Gould reported there were also two positions for temporary employees, which the San Rafael Sanitation District would offset by reimbursement, and would be at no expense to the City. Referring to the Police Department, Mr. Gould stated when Council approved the change to the Community Oriented Public Service strategy, it included the purchase of a vehicle for the Sergeant who acts as the community mobilizer, and the sum for the actual vehicle purchase has been built into the budget. He explained that with the City's fleet of vehicles, rental rates are charged back to the operating departments, so the City can do the preventive maintenance on the vehicles, and when the time comes, replace them. He stated there would be an additional charge of $6,380 per year for the rental charge of the Sergeant's vehicle, and as he believed this was part of the service level Council had directed, he had asked that this be built into the budget, as well. Mr. Gould reported that for the past four or five years the Police Chief and Captains had gone without any clerical assistance, as a cost saving measure, noting, as far as he was aware, the Police Chief was the only Department Director without any clerical support. Therefore, staff was suggesting three-quarters of a full-time position be added to the Police Department's budget for secretarial support for the Police Chief and his Captains. Mr. Gould stated Council would not be allocating additional funds to the budget, rather Chief Sanchez would change priorities within his current spending plan to absorb that cost. Mayor Boro asked if there would be an overall savings to the City if the three-quarter position was not replaced in Mr. Gould's office, but absorbed by another person, resulting in a net gain? Mr. Gould stated there would, noting he would address that issue later in his report. Mr. Gould reported the Police Department had recently engaged the services of an individual who does crime analysis and statistical work, which has proven to be extremely valuable to the Department. He noted this person was also able, through this data analysis, to generate revenue by such things as collection of overdue fines and fees. Mr. Gould stated it was believed this person would more than off -set the $30,000 cost of his three- quarter time contract, and he assumed that could be built into the budget, as well. As part of the public outreach portion of Community Policing, Mr. Gould recalled that when Chief Sanchez gave his presentation, he addressed how the Police Officers would make a greater effort to be in contact with the City's residents and businesses when they call for service, and afterward. He stated Council approved cellular phones in each of the Police vehicles, and now the City must budget for the operating costs of the phones, which are to be used not just in emergency circumstances, but in the normal course of business, in order to better serve the public. He reported this would cost $19,000, which he believed had been approved by Council, in principle, last March when they received the report on Community Policing. Mr. Gould noted the Police Department had been successful in persuing grant funding for a new Cadet program, announcing the Department would be hiring three Cadets this summer. He reported at this time the cost was being fully off -set by grant funding. Mr. Gould noted there were also some additional costs for Parking Enforcement, for overtime when Police Officers are on vacation or sick leave. He reported there has been an increased cost, which needed to recognized, and $6,000 had been placed in the budget for this purpose. Mayor Boro referred to the money for the three-quarter secretarial position from Mr. Gould's office to the Police Department. He noted the staff report stated a reduction in overtime would absorb this cost for the first year, and asked if Administrative Services would show a net reduction for the position, since that job was being absorbed by another person? Mr. Gould stated there would be an off -set for another position in Management Services. Referring to the $66,000 for the new Cadet program, Mayor Boro SRCC MINUTES (Regular) 6/1/98 Page 7 SRCC MINUTES (Regular) 6/1/98 Page 8 asked if that was unfunded for the year 1999/2000, and if it was a liability for the future? Mr. Gould stated there was a good likelihood there was at least two years of grant funding for that program. Chief Sanchez confirmed this was correct. Addressing the area of Management Services, Mr. Gould reported there had been a fair amount of reorganization in Administrative Services, which will become Management Services. He stated they had found the need for a counter person, for which they are currently contracting, noting this should be recognized as an ongoing need, to better serve the public. Mr. Gould reported this position would cost approximately $37,000, but by having this person to serve the public, which is a very busy position during the day, it would allow some of the other professional employees in the department to do things that are more at their job level, including collecting overdue fines and permit fees, doing desk audits, and persuing delinquencies. He stated staff felt it would be very easy to recoup the expense for this position through better collection procedures, noting this has been an area where we have been somewhat weak in the past, and by staffing properly, he believed we could get caught up, and more than off- set the cost of this position. He added they would also need to purchase a personal computer for that position, at a cost of approximately $2,000. Mr. Gould stated it had been suggested that we increase the hours for a part-time typist/clerk in the Risk Management position, to support both the Liability and Worker's Compensation funds, at a cost of $4,500, and he suggested splitting the cost between those two funds, noting it would have an immaterial affect on the two. He stated that because they have centralized Risk Management, staff was doing a better job of administering claims, pointing out they needed a little higher level of secretarial support to do so. Councilmember Cohen referred to the reorganization in Mr. Gould's office, noting Mr. Gould had reported a secretarial transfer to the Police Department, yet that did not show up. Mr. Gould asked Mr. Nordhoff where the entry level accountant position was shown? Mr. Nordhoff reported this was found in Exhibit C. Referring to the City Attorney and City Clerk budgets, Mr. Gould stated they would like to add $2,000 for temporary staffing for the times the City Attorney's secretary is on vacation or ill, in order to maintain the level of service. In addition, and more importantly, he stated he believed the City needed to extend the City Attorney's contractual services budget by $60,000 per year, which represents the heightened pace of activity this year, and in the coming one, based on the open cases and litigation the City is currently involved in, as well as the activity that permeates throughout the City. Referring to a request from the City Clerk's office, Mr. Gould noted there have been difficulties at Council meetings when we have encountered feedback from our microphone system and from outside sources. He reported our local expert had looked at the system, and he believed the City needed to make a major technological change to update the sound system in the Council Chamber, in order to avoid this problem in the future. Mr. Gould reported there would be a one-time cost of $9,432 to update the sound system so we would not have that trouble in the future. Mr. Gould stated staff believed this would be a worthy investment. Mr. Gould stated the foregoing were his recommendations to Council, just to maintain the level of service the City currently enjoys, and asked if Council was comfortable with these decisions? Mayor Boro referred to Exhibit B-2, and asked, of the items totalling $197,012, how much would be ongoing expense, and how much would be one-time expenses? Mr. Nordhoff reported that for the Public Works Department items, the $100,000 item was one-time, and everything else was ongoing, noting we also had to anticipate that expenses for Andersen Drive would increase $35,000 the following year. Referring to the Police Department, he stated the vehicle would be a one- time purchase, and all other costs would be considered ongoing, even if the grant funding lapsed after two years for the Cadets. Referring to Management Services, he stated those were ongoing costs, except for the computer, which was a one-time outlay; and in the areas of the City Attorney and City Clerk, the sound system would be a one-time cost, and the other expenses would be considered ongoing. Mr. Gould stated it might be that we could adjust the contractual services in the City Attorney's office downward next year, or the following year, noting we would just have to see what occurred. Mayor Boro noted it looked like approximately plus $200,000 on a permanent basis. Mr. Nordhoff stated on Page 6 of the staff report he had identified approximately $239,000, of which $107,000 was off -set, with the others considered new costs, for a net of approximately $132,000. Mr. Gould asked if Council was comfortable with those adjustments, as they build the budget? SRCC MINUTES (Regular) 6/1/98 Page 8 SRCC MINUTES (Regular) 6/1/98 Page 9 Councilmember Cohen suggested that when the budget is prepared there be a little more detail regarding the $60,000 for the City Attorney's office, including why that is, whether we expect it to be permanent, or just during the current workload. Mr. Gould reported one of the things Assistant City Attorney Guinan was working on in the Department was to give Council a litigation status update once a year, so they can see the status of the big cases, and where the Attorneys are spending their time. Mr. Guinan stated one of the reasons this increase was being requested was because as recently as two or three years ago, this fund was budgeted each year at $10,000, and routinely, with even one personnel action, that amount would be utilized and exceeded. He reported they had tried to bring this up to a level they felt would be comfortable, so the account would not be exceeded, noting if they do not use the entire amount for a given fiscal year, that amount would be rolled back into the account for the following year, to be supplemented with enough to bring it back up to the requested level. He pointed out there might be some years where there was very little expended, or there might be others, like more recently, when they are spending quite a bit. Mr. Guinan explained that during the City Attorney's presentation at the budget hearing on June 23rd, they would go into this in more detail. Referring to Exhibit C, Mr. Gould explained these were the requests by the departments for increases in ongoing services, or one-time purchases of specialized equipment. Mr. Gould reiterated Mr. Nordhoff's earlier statement, that currently we anticipate an excess of Revenues over Expenditures, in the range of $115,000. He noted if the Council decides to adjust the commercial charge for emergency medical services to $.05 per square foot, which is currently authorized by the voters, that would generate another $140,000, so there would be approximately a quarter of a million dollars Council could allocate for such ongoing spending. Mr. Gould addressed the Public Works Department and the Garage, and reported they wanted to invest in a computer system that would help track and manage the maintenance of the City's fleet of 150 various vehicles and major pieces of equipment, noting this was what any Fleet Manager would require to do his job. Mr. Gould reported this would be a one-time expense of $27,500. He stated his recommendation on several of the vehicle or equipment purchase items was that the City conduct a good audit of the Vehicle Replacement Fund. He did not believe we had a firm handle on whether we have included all of the vehicles that need to be replaced, or set aside sufficient dollars to replace those vehicles. Therefore, he was requesting Council hold on the decisions for these items, until staff can provide a better picture of where the Vehicle Replacement Fund stands, and then staff will return and ask for Council's decision on these types of purchases. Addressing the Fourth Street sidewalk cleaning, Mr. Gould reported the Redevelopment Agency had invested over $1.5 million in the new sidewalks on Fourth Street, which everyone agrees are a dramatic improvement over the old. He believed it seemed prudent that the City do some ongoing maintenance, and $15,000 represents the contract cost to do high-pressure cleaning of the sidewalks, at least quarterly. Mr. Gould reported there was a line item in the Redevelopment Agency budget, which addressed maintenance in the Downtown, and was currently at a $50,000 figure. With Council's concurrence, they wished to spend $15,000 of that $50,000 for the contract sidewalk cleaning. Mayor Boro noted he and Economic Development Director Ours had, in the past, discussed the possibility of purchasing our own sidewalk cleaner, and asked if this had been considered? Public Works Director Bernardi stated the City had one in the past, but it was not really big enough to do the job on a full-time basis, so it was mainly used for spot cleaning, when there was a particularly dirty area. Mayor Boro asked how much it would cost for one of the machines that looks like a big, riding vacuum cleaner? Mr. Bernardi stated he did not know, but would look into this for discussion during the budget hearings. Mayor Boro noted there were two components to this, the cost of the equipment, and the ongoing cost. He felt we should be talking with our partners in the Downtown, the BID (Business Improvement District), about possibly assisting in some of the ongoing costs to do this. He stated at $15,000 per year, after five years we would have paid $75,000, and we would have clean streets but no equipment. He noted he would like to find out how much the equipment would cost, if we could buy it, and if we could get the BID to pay for part of the operation? Mayor Boro stated he was not opposed to what staff was recommending, he simply wanted us to look at all of the alternatives. Mr. Gould stated staff would return to Council with further information. Mr. Gould stated there was a Resource Allocation recommendation in the area SRCC MINUTES (Regular) 6/1/98 Page 9 SRCC MINUTES (Regular) 6/1/98 Page 10 of Street Maintenance, explaining Public Works Director Bernardi and his Street Maintenance Supervisor had suggested taking $90,000 of monies that would otherwise be spent on street repaving, and hiring two entry level street maintenance workers, who would be employed to improve on patching, pot hole repairs, pump station maintenance, and a whole host of activities necessary to keep up the streets in a very visible, day-to-day fashion. Mr. Gould stated he was comfortable in recommending Council make that resource allocation change, and convert $90,000 of re -pavement money into street maintenance workers, because he believed they would see the benefit in a lot of areas. Councilmember Cohen asked how much area of resurfacing this represented, and whether it would make a significant change? He pointed out we had been on a 45 -year cycle, noting Mr. Bernardi had struggled valiantly to knock it down to 41 years, and asked if this would bring it back up to a 45 -year cycle? Mr. Bernardi explained it cost approximately $100,000 per mile to resurface our streets, so this recommendation would cost one mile of resurfacing. Councilmember Cohen asked how many miles the City resurfaces in a year? Mr. Bernardi stated this year we would be doing approximately nine miles, primarily because of the infusion of the Franchise Fee that was collected specifically for this purpose. He noted this would then become ongoing, with the City doing approximately six miles per year. Mr. Cohen clarified we were talking about doing six miles per year, and eliminating one of those miles each year to put the funds into these two positions. Mayor Boro noted this was the same year the City had agreed to spend $100,000 for a computer program, so we would really be doing 2 miles less. Mr. Bernardi stated that was correct, and $100,000 for the Pavement Management System, which was a one-time expense. Mayor Boro asked if it made sense to do both of these in the same year, if we were going to save money in the long run by having these people out there, and if they were going to take existing streets and make them last longer by being on top of things. Mr. Bernardi stated that was correct. He noted one of Mr. Nordhoff's charts points out the $5.6 million annual need, explaining the bottom line of that chart assumes our infrastructure is going to remain at a constant level. However, the reality is that as time goes on, our infrastructure is going to continue to deteriorate. He reported these two positions would attempt to keep that line flatter, rather than going down over time; therefore, if Council wanted to wait a year, there would be 4,000 hours of maintenance time less to be spent on the infrastructure. Mayor Boro asked if the budget amount of $900,000 for paving did not include approximately $200,000 that has been set aside here, and the $900,000 would go forward? Mr. Bernardi stated the $900,000 would go forward. Mr. Nordhoff explained all the items on the first list, Exhibit B, which Mr. Gould went through, were incorporated in the numbers being seen now, and those items on Exhibit C were not included in the budget at this time. Mayor Boro pointed out there was $100,000 on the first list to pay for the one-time computer program, and there was another potential $100,000 being recommended to pay for two employees; however, the City had recently approved a contract for $900,000 worth of street resurfacing. Mr. Nordhoff stated that was using up 1997/98's allocation of Gas Tax and Franchise Fees. Mayor Boro asked, "If we did not go forward with these two positions, would we have $2.1 million to spend this fiscal year?" Mr. Nordhoff explained that would be for next fiscal year, 1998/99, noting the contract just approved was using up 1997/98 funds. Mayor Boro asked if we were going to spend those funds in 1998/99, and Mr. Nordhoff stated we would begin now, and they would roll over into the next fiscal year. He explained the way the City allocates Capital Project money, Mr. Bernardi is given the allotment, and then we do not worry about the timing, assuming that if he has $900,000 to spend on paving, he bids it and spends it, and we do not worry too much about when we pay the bill. He noted that going into each budget year cycle allocates the new money coming in for the new fiscal year. Mayor Boro felt it was strange that we were allocating $900,000 for paving in April, when the fiscal year ends in June, and we know we are not going to finish it. He asked for clarification that these funds were for the current fiscal year? Mr. Nordhoff stated that was correct, noting part of this was timing, and had to do with weather conditions. Mr. Gould explained in previous years the City had been a little behind in paving, and we have a year and a half worth of paving money. Mayor Boro asked if that was why that money was so inflated? Mr. Gould stated that was correct, noting it would drop down closer to a $600,000 repaving project each year after that. Mr. Gould asked if it was Council's pleasure to defer the hiring of the additional staff for a year? Mayor Boro noted Mr. Bernardi had stated he would be able to save $100,000 by having these people here, as far as the infrastructure was concerned. Mr. Gould acknowledged there would be a lot of work for them to do, noting they were understaffed in the Streets Division. SRCC MINUTES (Regular) 6/1/98 Page 10 SRCC MINUTES (Regular) 6/1/98 Page 11 Mr. Gould reported there was also a request for a one-time purchase to replace a forty year old forklift, which he agreed should be replaced. He noted the San Rafael Sanitation District would pick-up half that cost, and again, he was suggesting they hold any decision on this until they had a review of the Vehicle Replacement audit. Referring to an item a number of departments felt strongly about, Mr. Gould reported the City currently employs a person half-time to remove graffiti throughout San Rafael, and this person would like to work full-time. Mr. Gould reported this person had many skills, noting one of his prior jobs had been as a Police Officer in the City of Berkeley. Mr. Gould stated one of the ongoing complaints the City receives from a number of neighborhoods, particularly those around the Downtown, is that the City does not have sufficient presence in the parks during week -ends and odd hours. Mr. Gould noted the Parks Division was currently understaffed, and the thinking was that if we could make this person's position full-time, he could spend 20 hours a week in the major City parks, cleaning -up, making sure people are not sleeping in the parks, lighting fires, or holding beer parties. Mr. Gould noted this would be a great improvement in service from the standpoint of a number of Neighborhood Associations, stating he believed this individual would be very conscientious, and give the City a very good return on the $28,000 it would cost annually to make the change from part- time to full-time. Mr. Gould noted four out of five of the Department Directors agreed that this was something they would like Council to consider very seriously, as they allocate resources. Addressing the Police Department, Mr. Gould stated that in addition to the vehicle for the COPS Sergeant, Chief Sanchez was requesting an additional Police vehicle. He noted the reason that is necessary is because the current fleet is just large enough, if all the vehicles and their equipment are operational, to put our people on the streets when we are fully staffed on the larger shifts. He noted that if any one of the vehicles is out of service, because the radio, light bar, siren, or other electrical equipment is not working, then Officers wait until another car shows up, so they can trade-off and get back out on the street. Chief Sanchez would like Council to consider an additional vehicle, so the Police Department can put more people on the street. Again, Mr. Gould requested Council hold this decision until they have a better handle on what is going on in the Vehicle Replacement Fund. Mr. Gould stated probably the most frequent request for additional service received by the City, was for additional traffic enforcement. He reported the Police Department was currently staffed with two Motorcycle Officers, one of whom is out on extended leave, leaving one Motorcycle Officer doing traffic enforcement in San Rafael. Mr. Gould noted Chief Sanchez was addressing this situation in a couple of ways; first, he was encouraging the other Officers to begin writing more tickets from their vehicles, which has not been emphasized in the past, but something we are getting back to, as it is an important vehicle safety issue. Mr. Gould reported Chief Sanchez had also applied for an Officer Transportation Safety grant, which we believed we had a very good chance of receiving. He explained that like Federal dollars, this was a State grant that would fund the full cost of the additional Motorcycle Officers the first year, and would drop down to half the cost in the second year, and a third of the cost the third year. He noted Chief Sanchez had submitted an application for two additional Motorcycle Officers, and we should have confirmation within the next month or so that we have received authorization. The issue would then come before Council for a decision. Mr. Gould stated that while it would be easy during the next fiscal year, it would become more problematic down the road, becoming an increased operating cost. During the second year it would be a $75,000 expense to maintain that level of service, and $150,000 after the third year to keep the two Motorcycle Officers on. Mr. Gould noted he told Chief Sanchez that once the community gets used to the higher level of traffic enforcement, they were not going to want to go back; therefore, we would need to have a contingency plan, so in case the economy declines, and the grant monies go away, Chief Sanchez would know what he would recommend come off the bottom in his department, if that were to occur. Mr. Gould stated Council did not need to make a decision on this now, but staff wanted to bring it to their attention, because they felt it would be very desirable to have four Motorcycle Officers in our employ, to address the ever increasing traffic in San Rafael. Mr. Gould believed there would be a 100% improvement in traffic enforcement, noting with that, there would also be an off -set of revenues, as Motorcycle Officers generally write approximately ten tickets per day, and more importantly than the revenues the Officers would generate, we would see a reduction in the number of injury accidents. SRCC MINUTES (Regular) 6/1/98 Page 11 SRCC MINUTES (Regular) 6/1/98 Page 12 Mr. Gould reported an application had been filed for a grant to receive funds for the staffing of a Domestic Violence Investigator, noting this, sadly, was one of the few areas of rising crime in San Rafael, and most communities across California. Mr. Gould noted this grant would pay for a Domestic Violence Investigator, and perhaps a clerical person, although he believed we would likely trim the clerical person out of it. He stated there could be approximately $210,000 from the two-year grant, at full funding, with the possibility of further funding beyond that. Mr. Gould stated Chief Sanchez would very much like to have a full-time Investigator on this issue, and Mr. Gould believed this was an issue the City should address as seriously as it can, noting it would be great to have two years of funding to step up in this area. Mr. Gould noted, as Mr. Nordhoff had stated earlier, the only fund that did not balance easily was the Downtown Parking District, noting Council had three options in order to make the fund balance. Mr. Gould stated staff believed the reason the Parking District has had trouble meeting its expenditures was because the City has added Police Officers over time, for the Downtown foot beat, and because the projections made two or three years ago, regarding the revenues that would accrue if the parking meter rates were raised, have not borne out. Therefore, the Parking District fund is upside down $105,000 per year. Mr. Gould stated Council had several options; one would be to increase the meter rates in the Downtown, noting it would have to be a substantial hike to off -set that kind of revenue. The second option would be to shift one Officer out of the Parking District, and back into the General Fund, which would account for a savings of approximately $75,000 to the Parking District. The third option would be to reduce the level of staffing, and instead of having three Officers dedicated to the Downtown, go to two. Mr. Gould stated this had been discussed at staff level, and it was agreed that having three foot beat Officers has been very effective in the Downtown, and they did not believe it would be desirable to cut back on the level of service. Mr. Gould stated it would be staff's recommendation that Council take a hard look at moving one Officer back into the General Fund, and adjusting meter rates, to make sure the Parking District is whole. Referring to the General Plan Update, Mr. Gould noted this was a "moving target". He recalled last year Council allocated $100,000 to get the General Plan revision started, and at the same time, implemented a surcharge on a number of Planning Fees and Permits, to generate money for the General Plan revision. Mr. Gould stated staff estimated that with the $100,000 Council allocated last year, and the surcharge generating funds last year, this year, and next year, there would be a total of approximately $400,000 available to revise the General Plan during this year and next year. Mr. Gould reported Community Development Director Brown and his staff had done a very detailed analysis of the consulting studies that would be necessary to revise the General Plan, and they believed the cost of doing it right may still be higher, perhaps on the order of a half million dollars. Mr. Gould pointed out the City of Novato recently revised their General Plan at a cost of $1 million, and the City of San Rafael spent nearly $600,000 on its Downtown Vision process, noting, as wild as it sounds to spend a half million dollars revising the General Plan, that was actually a fairly modest sum. Mr. Gould stated that while staff did not have a good figure yet on the total cost of the General Plan revision, there were certainly enough funds to get it started this coming year. He reported Mr. Brown would be presenting the work program for the General Plan revision in July or August for Council's approval, and conversations were already being held with the various stakeholder groups. He stated there was no need for Council to take any action currently, with the exception that when we revise the Business Cost Study in November, they might want to review the surcharge being added to the various Permit Fees, to make certain the City is collecting enough, not only for this General Plan revision, but also the next one ten years hence, so there will be plenty of funds available to do the job that is necessary. Councilmember Cohen stated if Council was giving direction regarding what staff will bring back before the Council, he wanted to further discuss the Parking District. Mr. Cohen noted the Officers had been charged to the Parking District with the understanding that the revenue generated would cover that expenditure, not because there was an inherent connection to the Parking District. He stated if the money was not there to pay for the positions, and we felt the positions were still needed, he felt it made sense to move funding for at least one position back into the General Fund, and get the Parking District closer to being balanced. Mr. Cohen believed that $70,000 should be factored into the General Fund portion of the budget being brought back to Council. Regarding the other $35,000, which is still upside down in the Parking District after we do that, he stated staff would have to look a lot more places before he would be willing to even consider SRCC MINUTES (Regular) 6/1/98 Page 12 SRCC MINUTES (Regular) 6/1/98 Page 13 a meter hike. He pointed out the City had already gone through a meter rate increase, and it was a fairly recent memory, and he felt we should let the current rates stand for a while, and take a harder look at the Parking District budget to see if there are other ways to deal with the $35,000 gap. Mr. Cohen noted staff did not report what the impact would be of moving the $70,000 back to the General Fund, but he assumed it would have a noticeable impact, since everything was so finely balanced. Mr. Nordhoff reported it would use up $70,000 of the $115,000 discretionary money available. Mr. Gould stated if they chose to adjust the EMS Commercial Rate, there would be a little more money to work with, but it would take the bulk of what they know today to be available for additional services. Mr. Cohen pointed out that if they do not do that, the Parking District continues to lose $105,000 per year, and Mr. Gould noted they would also be violating one of the City's financial principles. Mr. Gould stated he did not feel that was an option, and Mr. Cohen agreed. Mr. Cohen stated this was an important point, and one he did not feel could be left for too long. Mr. Gould stated he proposed to bring this back at the meeting of June 15th for Council's decision making. Mayor Boro asked Mr. Gould to also bring back a report on where we are regarding the ratio of Parking Enforcement Officers to revenue. Mr Nordhoff reported we presently had five Parking Enforcement Officers, noting that has been consistent for the past three or four years. Mayor Boro noted Economic Development Director Ours might want to speculate, during the time we are constructing the Cineplex, when the parking structure is torn down and the parking meters are pulled out, how much of a loss that will give us, and whether we need as many Parking Enforcement Officers while that is going on. Mr. Gould stated that was one of the reasons the revenues were down. He explained that during construction of Andersen Drive and other street improvements the City has made, a number of meters were pulled, some of them permanently, which has changed our revenue picture. He confirmed that while the parking structure is down, there will be a loss of revenue during that period. Reporting on the Fire Department, Mr. Gould reported the Fire Chief had a pressing need to replace the breathing apparatus necessary for the Firefighters and Paramedics to wear when they enter smoke-filled buildings. He noted our current equipment is five to ten years old, does not meet the current safety standards, it is becoming increasingly expensive to replace the cylinders that maintain the compressed air, and they are not interchangeable with those used by other Fire Departments throughout the County. Mr. Gould stated it was time to change them, noting we should have been putting this on the Equipment Replacement Schedule and funding it over time, so the money was already there, because we now have to do it all at once. Mr. Gould stated Chief Marcucci had informed him the figure shown of $200,000 would probably be closer to $150,000 to replace the breathing apparatus, noting Chief Marcucci would seek bids and provide Council with a more precise figure. Mr. Gould noted it might be possible to lease/purchase this equipment, so it is a one-time expense. He believed it would be prudent to double -up by putting aside the monies to lease/purchase the equipment, and setting aside money each year for the eventual replacement of this new equipment, so we do not find ourselves in the same bind five or ten years from now. Mr. Gould reported it was estimated that doubling -up would cost approximately $35,000 per year, and he believed this to be a very high priority for our Firefighters. Mayor Boro asked about the OSHA (Occupational Safety and Health Agency) requirement we may be getting of "two in, two out". Mr. Gould reported that requirement would go into effect in July, noting the City would have to write its own implementation policy and train our people on it. He explained if the Fire Department were to staff so there were four Firefighters on each engine, it would mean an additional expenditure of $1.5 million. The alternative would be that if our Firefighters arrive on the scene of a fire where there is a three-person engine, and the building is fully engulfed by flames, but we do not suspect there are any people in the building, then the Firefighters would have to stand by until the next engine arrives before they can enter. He explained the regulation states that before the Firefighters can go inside a building and fight the fire, there must be two Firefighters on the outside, who are ready to go in and save the two Firefighters who are going into the building. Mr. Gould stated this was an attempt to increase staffing levels in small and medium sized cities throughout the Country, noting it had just been adopted by CAL/OSHA (California Occupational Safety and Health Agency), so it becomes an unfunded mandate for San Rafael. Mayor Boro noted that changing our response time, evaluating each situation based on its own merits, and staffing additions were all options. Mr. Gould agreed these were all options; however, he could not imagine the City making the staff additions necessary to maintain the current service level with "two in, two out", SRCC MINUTES (Regular) 6/1/98 Page 13 SRCC MINUTES (Regular) 6/1/98 Page 14 although he noted, happily, the incidence of fire in San Rafael drops each year. Mr. Gould pointed out the Fire Captain on the scene has the right to make the choice, and if he believes, for any reason, there might be people inside the burning building, he can send his people in right away, to preserve life. However, without a belief that there is anyone inside, he has to wait until there are two Firefighters outside for every two who enter the building. Referring to the Library, Mr. Gould recalled last year the Council had quite a discussion about where to add additional Library hours, and they decided to re -institute Monday hours. Mr. Gould reported this has been a tremendous success, with the Library seeing a 20% increase in circulation, noting the Library is at its busiest on Mondays. He stated that at the time, Council had been interested to know what it would cost to provide limited Sunday hours, and Library Director Vaughn Stratford has determined that to offer Sunday hours during the school year, September through May, from 1:00 PM to 5:00 PM, would cost an additional $27,500. Mr. Gould pointed out there would be a partial off -set, because we have been receiving State Public Library funds for a number of years, and those funds increased a couple of years ago to approximately $13,000 per year. He reported that increase seemed permanent; therefore, the actual cost of going to half-time Library hours on Sunday, during the school year, would be more in the range of $14,500, as a budget option. Mr. Gould reported the Library Board and the Librarian caution that because of the increase in activity at the Library, the demands for the new Internet services, and because there are so many more books and tapes going on and off the shelves, it might be prudent to invest in additional staffing, just to maintain the current Library hours, which was estimated at $50,000 per year. Mr. Gould stated he and the Department Directors saw this as a slightly lower priority than going to Sunday hours, but one the Library Board and staff wanted to present to Council as an option. Mayor Boro noted that for approximately $1,200 per month, for the nine months of the school year, they could open the Library on Sunday. Councilmember Cohen stated his question was not about the math, it was about the concept. He asked if the $13,000 in State Public Library Funds would come to the City only if the Library was open on Sunday, or was that money there anyway, and we had not been recognizing it in the budget because we thought it might be discontinued, and now we believe it looks like it will be here permanently? Mr. Gould stated it was discretionary. Mr. Nordhoff explained a funding that is "in place" is one where we have maintained an equal or higher level of expenditures in the Library over the preceding year, although it does not specify how to use those funds. Mayor Boro noted this was a new source. Mr. Cohen agreed, but clarified this was not a new source that was available only if we open the Library on Sunday; rather we could consider it an off -set against the decision made to re -open the Library on Monday, and we could apply the $13,000 to some of the issues raised in the request about dealing with some of the impact of the added hours we put back on Monday. Mr. Cohen stated the cost of opening the Library on Sunday was $27,500, and he believed we had to think about that being the cost to do this, regardless of the $13,000. Mr. Nordhoff noted, up until a couple of years ago, the level of funding from the Public Library Fund was $17,000 per year, and the City was using that to supplement materials and book purchases. Mr. Nordhoff reported we were now up to approximately $30,000, which was believed to be a consistent level of funding looking forward. Mayor Boro asked how the $27,500 was calculated? Mr. Gould reported this assumed each member of the permanent staff would work a Sunday, once a month on a regular basis, and we would supplement with part-time staff to provide an adequate level of staffing during the Sunday hours. Library Director Stratford stated that was correct, noting there would be part- time, non -permanent staff who were "on-call" to work. Mayor Boro asked if the City would pay a premium for them working on Sunday? Mr. Stratford reported on-call employees were not paid a premium. Mr. Gould noted this item would come back on the "short list" for Council's decision making. Addressing Management Services, Mr. Gould noted Mayor Boro had asked about the savings accrued by the elimination of a three-quarter time clerical position in the City Manager's office. He reported there have been a lot of changes in Administrative Services, which is now the Management Services Department, stating they were very happy to have been able to increase the level of professionalism and expertise in that department. Mr. Gould noted there was one more position to be added in order to round out the services in that department, and have it fully staffed to support the operating departments and the public, and that would be the addition of a Junior Accountant. Mr. Gould reported the true cost would be $35,000 per year; however, it was believed we could off -set that cost because we would be reducing the level of clerical staffing in the City Manager's office by $28,000, which is the position that is moving down to the Police SRCC MINUTES (Regular) 6/1/98 Page 14 SRCC MINUTES (Regular) 6/1/98 Page 15 Department. He noted that would leave $7,000 remaining. Mr. Gould stated one of the duties of a Junior Accountant would be to provide purchasing services for the large operating departments, putting contracts for services, goods, and supplies out to bid for the Police, Fire, and Public Works Departments. Mr. Gould noted the three major operating departments suggested they would be happy to contribute $2,000 from their existing operating budgets to help in that area. The Management Services Department would pick up the remaining $1,000. Therefore, with the savings in the reduction in clerical support from his office, and allowing the operating departments to pick up the remainder, this position would be funded. Mayor Boro noted the force count for Management Services had been 15.53, and it was now 19.53. He asked if the Junior Accountant position would bring the total to 20.53? Mr. Nordhoff stated that was correct. Mayor Boro asked if three of those positions were due to the Data Processing coming in-house? Mr. Nordhoff stated that was correct, pointing out that was started this fiscal year. Mayor Boro asked if the fourth person was an addition to the auditing staff? Mr. Nordhoff stated the fourth was the front counter person Mr. Gould had referred to earlier. Mayor Boro clarified a Junior Accountant position would be the fifth, and Mr. Gould stated that was correct, noting they would then be well staffed in Management Services, and he did not expect to increase staff for many years to come. Mr. Cohen asked why the total would increase from 19.53 to 20.53 if the secretary was moving to the Police Department, and they were replacing that position with a Junior Accountant? Mr. Nordhoff explained that at the time they put together the reorganization of Management Services, they had not included the Junior Accountant position into the budget, assuming it was self-funded by the elimination of the secretarial position in the City Manager's Office. Therefore, the Junior Accountant position needed to be added, as they had not included anything in these figures for which Council had not given direction or taken action on. Mr. Nordhoff noted he had reduced the City Manager's count, and then increased the Police Department's count, because that was already built into the budget. Mr. Cohen pointed out that in the current year we had 18.53, so if, before the proposal for the Junior Accountant, we move a secretary to the Police Department, we end up with 19.53, or a net gain of two before the Junior Accountant. Mr. Nordhoff responded negatively, explaining the secretary had been funded out of the City Manager's budget, and that budget had been reduced by a three-quarter position. Discussing Organizational Development, Mr. Gould stated virtually all the departments had a line item account for training, to keep our employees current in their functional areas; however, there was no funding set aside for general training and improvement of City staff, other than the Brown Bag sessions Daryl Chandler has instituted as part of the Human Resources reorganization. Mr. Gould noted he had recently written to the Councilmembers about the need for management team -building with the Department Directors, which he felt was important. He explained this would be a one-time expense. In addition, consistent with Council's priority for customer service, staff also felt we needed to institute ongoing training for the City's employees in the various departments, in such areas as customer service, phone etiquette, and how to deal with difficult customers. He noted they were thinking of finding the right training package to bring in-house, and instituting a regular program. He stated there were also several employees who had begun offering in-house training to their peers, a so-called "trainer of trainers" concept, which staff would like to build upon. Therefore, staff was requesting a little seed money to do that, suggesting an amount of $30,000, which would be an ongoing expense for Organizational Development. Mr. Gould noted that with the City showing a Full-time Equivalence of approximately 400 people, and a budget of over $50 million, this would seem to be a prudent expenditure. Addressing the "big ticket" items, Mr. Gould stated that in order for the City to divest itself completely of the proprietary BRC systems, and to finance the Police and Fire Departments, the City was going to need to set aside a quarter of a million dollars, pointing out we needed to begin doing this as soon as possible. He noted Council had recognized this, in the study session regarding Information Systems Management. Mr. Gould stated if Information Systems Management was deleted from the City's Unfunded Infrastructure Needs, we would still need another $5.4 million per year in additional funding to do the streets, sidewalks, storm drains, curbs and gutters, in order to do it right. Mr. Gould noted that would include $1.6 million for the purchase of the Fire Department and Public Works Department portions of the new radio system. He pointed out Council had set aside monies to replace the Police Department radio system, and now we were waiting for bids, at the end of July, for the Countywide radio system, noting at that time we would have a better idea of what it will cost us; however, assuming the $20 million (Countywide) that has been our working SRCC MINUTES (Regular) 6/1/98 Page 15 SRCC MINUTES (Regular) 6/1/98 Page 16 figure throughout, it could still cost us another $1.6 million that we would have to pay, probably on a lease/purchase format over the next ten years, in order to replace Police and Fire at the same time. He pointed out that because it had been agreed by all that San Rafael would go first of all the agencies, we were going to have to step up and address this sooner, rather than later. Mr. Gould noted the last item he wished to address was not on Council's list, although Mr. Nordhoff had alluded to it earlier, and it had been suggestion by the Mayor. Mr. Gould reported their visit to Sacramento last week had reminded them how important it was to have professional advice from time to time on how best to influence the State Legislature and the Governor regarding issues of great importance to cities, noting we could not rely strictly on our membership in the League of California Cities to make our voice heard in Sacramento. Therefore, he was suggesting staff come back to Council with a rough estimate of approximately $10,000 per year, which could be used to engage the services of a consultant to serve as the City's lobbyist on big matters, such as the Vehicle License Fee proposal currently being debated, which could cost the City upwards of $2.8 million per year if it were completely eliminated. Mr. Gould stated it was very common for larger cities to have their own lobbyists, noting the City of Novato employs a lobbyist, and when he raised this subject at the Managers' Meeting, representatives from a number of other cities agreed that it was a good idea. Regardless of whether the other cities do this, Mr. Gould felt this was something San Rafael should consider, in its own defense. Mayor Boro stated, based on their experience in Sacramento last week, and other experiences he and Mr. Gould have had, he believed it would be very prudent for the City to hire someone on an hourly basis, or a retainer, and as the City needs help, that person could come to our aid. Mayor Boro noted one of the issues that becomes apparent is that while the City looks at a lot of legislation, we really needed to focus on those issues we believe are going to have the most impact on the City in any given year, and then find the right person, who can call and make the appointments for us, and ensure that we get to the Legislators. Mayor Boro noted that with the way the Legislators are changing in Sacramento on a regular basis, we needed to have some contacts, because the long-term arrangements that have historically been there are no longer there. Councilmember Miller asked if we would be able to recoup any kind of funds from some of the various organizations we are already a member of, but do not necessarily serve our interests well, in terms of lobbying? Mr. Gould reported the only organization the City was a member of, which lobbies for cities, per se, is the League of California Cities, and because it has two primary missions, one being Legislative Advocacy, and the other training and conferences, he did not feel we could rely solely on this organization to represent the City's interests in Sacramento. He noted perhaps we might want to consider whether that is an investment the City wants to continue to make each year. Mr. Gould pointed out it would be a very big shock to the system if the City of San Rafael were to drop out of the League, but not unheard of, reporting there were other cities considering similar actions. Mr. Gould stated the League was not well set up to be a lobbying organization. Councilmember Heller asked what the City's annual dues were to the League? Mr. Nordhoff explained that was calculated on a population basis, and as he recalled, it was approximately $22,000 per year, although he would have to verify that figure. Mayor Boro asked staff to return with ideas on two different items. First, he noted that at the recent study session with the Budget Oversight Committee they had discussed the issue of Capital Improvements, and the fact that our biggest problem was we did not have a Capital Improvement Fund. He asked Mr. Nordhoff and Mr. Gould to give some thought to the idea of whether or not we wanted to start this next year, acknowledging there would have to be an off -set, but stating at some point we had to start. He felt one way to begin funding Capital Improvements on an ongoing basis would be to take a percentage each year of projected new Sales Tax Revenue, not via growth, but from new projects that come on-line. As an example, he explained if we were to project $300,000 in new revenue next year, we would take 1/3, or $100,000, and put it in a fund, and then the second year we would take that same $100,000 and continue that, and also take 1/3 of the new revenue in the second year, and eventually, we would end up with a good sized piece of change. He asked Mr. Nordhoff and Mr. Gould to look at what would happen if we were to start this, and took it within the cycle of our five-year plan, what it would look like at the end of five years, and also what the downside would be. Secondly, Mayor Boro stated he was still looking for some "magic pill" SRCC MINUTES (Regular) 6/1/98 Page 16 SRCC MINUTES (Regular) 6/1/98 Page 17 concerning the medians. He noted there was nothing concerning medians in the budget, acknowledging that perhaps all we could do this year was to start talking about it. However, he stated he would like some strategy we could begin to look at, something where the City might be able to go out on a community -wide basis, and appeal to the community with some kind of City/neighborhood type of joint effort. Mr. Gould stated he and Public Works Director Bernardi were aware of Mayor Boro's concerns in this area, and they believed it should be possible to come up with options for Council to consider, so we could offer choices to the neighborhoods regarding what improvements could be made to the medians to make them no- or low - maintenance, even if they are not beautiful, as well as some kind of cost- sharing arrangement; then it would be a matter of whether or not the Associations would want to step up and fund their portion. Mr. Gould stated he had no idea what that would cost, but suggested when Council made the one-time allocations, they might want to consider putting in some seed money if we came up with a plan, and if the neighborhood wanted to jump on it right away, we would have a little money to work with to get it started this year. City Manager Gould stated staff would bring this list back before Council at the meeting of June 15th, after trimming it down from the items that were really not for consideration this year, and based on the analysis, would give Council a little more information on the items flagged for further discussion; then it would be up to the Council to determine which ones they wished to incorporate into the budget. He noted final determinations would be made on July 6th. Councilmember Miller referred to the Traffic Officers and traffic control, stating he felt this was the number one item that should be considered, as the problem he hears about most often from the public is traffic. Mr. Gould stated that with the addition of the Associate Traffic Engineer, which Council had approved, who will help Traffic Engineer Nader Mansourian and Public Works Director Bernardi work with the neighborhoods to explain and analyze traffic improvements, and with the additional traffic enforcement, he hoped we could get on top of a lot of these requests for service. Mayor Boro noted Council had not yet seen the agenda for the next meeting; however, it was known that the St. Vincent's/Silveira proposal would be before the Council, as well as another significant issue. He stated if it appeared the meeting was going to be too long, Council might prefer to incorporate Mr. Gould's next report on the first night of the budget hearings (June 23rd), because he wanted to give the report enough time for discussion. Mr. Nordhoff asked for two points of clarification. He noted Councilmember Cohen had suggested we shift a Police Officer back to the General Fund, and asked if it was Council's consensus that staff do that at this point? Mayor Boro directed that staff show it that way. Mr. Nordhoff pointed out that would reduce discretionary money by a like amount. Secondly, Mr. Nordhoff stated, if Council so directed, staff could build the Commercial Tax Rate increase on the Paramedic Tax, and actually add $140,000 back to discretionary funds. Councilmember Miller stated he was interested in the "pay as you go" principle, and was interested in the rate hike in terms of the parking meters. Mr. Nordhoff stated he would bring back more information on that issue. Mr. Gould stated staff would also present a proposal to adjust the Commercial Rate for the EMS (Emergency Medical Service). Mr. Gould reported there had also been money left over from last year, from one-time sources of funding, noting Council had directed staff hold any further allocation of that sum until they were certain the City could fund the Court Street Plaza project. Mr. Gould stated the Developer had committed $150,000 in construction management costs, as well, and it was believed we would receive another sizeable contribution from the theatre developer. He reported staff was confident the City would be able to get the base plaza, at a minimum, and construct that concurrent with the Macy's project. Therefore, he stated if Council were comfortable, staff would like to go back to the list of one-time expenditures and ask Council to re- examine some of the items on that list. Mr. Gould reported the list included a Council Chamber upgrade, noting this was part of Council's Public Outreach Priority, noting it was clear we were not really set up in the Chamber to make presentations that are clear and understandable to the Council and to the public. He stated an upgrade would involve moving some of the furniture, and getting some new technology in place. He estimated it to be a one-time expenditure of approximately $35,000, which would come back to the City many times over, in greater SRCC MINUTES (Regular) 6/1/98 Page 17 SRCC MINUTES (Regular) 6/1/98 Page 18 public understanding and participation. Second, Mr. Gould stated the carpeting in City Hall had already outlived its expected life span twice - over, and although the carpeting had been improved in the City Manager's and Mayor's offices recently, staff would like to extend that carpeting throughout City Hall, at a one-time cost of $30,000. Mr. Gould reported he had also written the Councilmembers about the City Hall at the Mall project. He noted he was less clear about the actual cost of this project; however, to get into business with City Hall at the Mall, we would need to build -out some tenant improvements, and with whatever space Mace Rich was willing to give to the City, we would need to build displays and create excitement to draw people in, and then staff the office properly. Mr. Gould reported Mace Rich was willing to give the City one- time start-up funds of approximately $50,000 to get the space in shape, and provide the furniture and furnishings, and they were also suggesting $20,000 during the coming year for part-time staffing, in order to achieve the hours it wishes City Hall at the Mall to be open. Mr. Gould explained that, and the $1 per year rent on approximately 1,800 to 2,000 square feet, would be Mace Rich's contribution. Mr. Gould reported it might still take something more, above that, to get the facility in place and ready to go, noting he wanted to make sure we could do this right, and it would be something the City would be proud of. Regarding the computer system for the shop, Mr. Gould stated he wished to hold that item for study of the Vehicle Replacement Fund, as well as the forklift. He stated staff had listed the remaining Unfunded portion of the General Plan Update as $100,000, but noted that was merely a plug number, stating they would know more next year. Mr. Gould stated these were the suggestions of possible ways to expend approximately $165,000 of the one-time funding left over from last year, which staff would like Council to consider. Mr. Gould asked if there was anything Council would like to see added to this list, or removed? As there were no further comments from the Councilmembers, Mr. Gould stated the items on this list would be brought back for Council's consideration on June 15th, unless that Council meeting was too full, in which case the list would be discussed at the first budget hearing on June 23rd. Roz Katz, resident of San Rafael, referred to the request for a new position in Management Services, for a person who would be responsible for the collection of unpaid fines. She asked if staff had considered all of the costs that would go into having that person on board; would this person, or the City, be online with TRW Credit Services, so the City can include information on a person's credit reference; is the City aware that a lot of collections must go through a legal process, which may take up the City Attorney's time; and has the City considered the possibility of outsourcing this type of work to a collection agency, paid only when they produce results? Mr. Gould stated staff had taken a comprehensive look at the City's collection procedures, which he acknowledged were somewhat out of date. He noted staff was also looking at what other cities have done, including the outsourcing of the collection of major delinquent fines. He explained they believed the combination of the additional staffing and outsourcing was probably the best way to go. In addition, he stated that getting our Ordinances in place, and obtaining the assistance of the City Attorney's office, were going to be of key importance, noting the Deputy City Attorney had already provided a certain amount of assistance in this area, and this would likely have to increase. Ms. Katz noted if the City goes after this aggressively, it will increase geometrically. Mr. Gould agreed. Mr. Nordhoff stated he appreciated Ms. Katz comments, and reported there was some money currently in the budget for collection costs. In addition, staff has been looking at opportunities to do things with the Franchise Tax Board, noting they now have a program in place where the City can take delinquent Business Licenses, and other monies that are owed the City and, in essence, attach Income Tax refunds. He pointed out there was no cost to the City for that program, other than some information sharing. Ms. Katz asked if that would be to get money from individuals, or just businesses? Mr. Nordhoff stated be believed it was from both, but he did not know the details of the program, as it was new. Ms. Katz stated she imagined most of the money was owed by individuals. Mr. Nordhoff reported there were a lot of delinquent Business Licenses, which would also fit into this program. He explained the City would look at this on an individual basis. In addition, he stated the City also had the opportunity to work with the County Controller and County Assessor offices, and if it came to that point, the City could lien properties and collect money that way, which was neither a time intensive or costly process for the City. SRCC MINUTES (Regular) 6/1/98 Page 18 SRCC MINUTES (Regular) 6/1/98 Page 19 12. CITY COUNCIL REPORTS: a. ST. VINCENT'S/SILVEIRA PROPERTY - File 9-2-45 x 191 x 193 Mayor Boro reported he and Councilmember Heller had been working with County Supervisors John Kress and Steve Kinsey during the past several months to see if they could reach some kind of plan to go forward with the processing of applications for the St. Vincent's/Silveira site. He stated they have had a number of formal meetings and informal sessions, noting he had already met with the environmental groups, last week they had an informal meeting with one of the property owners, and they would meet with the other property owner shortly. Mayor Boro reported they had initially planned to bring this issue before the Council this evening during a public hearing, but the process was delayed. However, since the issue had originally been scheduled for a hearing this evening, the Board of Supervisors were scheduled to hear the issue at their meeting tomorrow evening. Mayor Boro noted he had agreed to attend the meeting tomorrow night with Supervisors Kress and Kinsey to discuss the issue in detail with some of the environmentalists, to give them the assurances they were looking for. However, since the document will probably not be available until later this week, Council will not hear the issue until June 15th, and the Board of Supervisors will hear it on June 16th, he did not feel it made sense to attend a meeting to explain the document to a group of interested people, when the document had not yet been brought before Council, noting he felt it would be a little presumptuous on his part to do that. Mayor Boro stated, according to an article in the newspaper this evening, that meeting was still scheduled to take place tomorrow evening, and the two Supervisors will be attending to speak to the environmental groups. He stated his concern was that there would be people other than the environmental groups who have an interest in this, and he believed it should be more of a general meeting. In addition, as we do not yet have a document, he did not understand what they were going to be able to discuss, except in principle. He noted the Supervisors had assured him they would not be bringing any documents to the meeting tomorrow evening. Mayor Boro hoped that during the next few days they would be able to get their memorandum out, he and Supervisor Kress would sign it, everyone would have a chance to read it, and the City would have a presentation from Community Development Director Bob Brown and Associate Planner Linda Jackson at the next City Council meeting, for the benefit of the Councilmembers and members of the public. Mayor Boro stated his goal has been two -fold; first, this was an issue along with the Transportation Tax issue, trying to get a resolution on that site, noting it would be great if that could be resolved to the satisfaction of a lot of people. However, if that does not pass, he believed we should have some resolution between the City and the County as to how we are going to go forward with this property, so if there is a development opportunity that comes about, we can process this thing and get it moving. There being no further business, the meeting was adjourned at 10:15 PM. JEANNE M. LEONCINI, City Clerk APPROVED THIS DAY OF 1998 MAYOR OF THE CITY OF SAN RAFAEL SRCC MINUTES (Regular) 6/1/98 Page 19