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HomeMy WebLinkAboutJUNE 4,1996 I CITY COUNCil. PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN TIlE OFFICE OF TIlE CITY CLERK 38:0177 OIIO-~O 01.0</"0 ( { MINUTES CITY COUNCil. OF TIlE CITY OF ARCADIA and the ARCADIA REDEVELOPMENT AGENCY ADJOURNED REGULAR MEETING (BUDGET SESSION) JUNE 4. 1996 The City Council and the Arcadia Redevelopment Agency met in an Adjourned Regular Meeting. Budget Session, on Tuesday. JWle 4, 1996, at 5:30 p.m. in the Arcadia City Hall Council Chambers for the prinwy purpose of reviewing the City Operating Budget, Fiscal Years 1996-98 and the CapitaIlmprovement Program for Fiscal Years 1996-1997 to 2000-200 I. ROLL CALL PRESENT: CounciVAgency Members Chang. Harbichl, Lojeski, Young. and Kuhn ABSENT: None 1. SUPPLEMENTAL INFORMA nON FROM STAFF REGARDING AGENDA ITEMS I None. 2. TIME RESERVED FOR THOSE IN TIIE AUDiENCE WHO WISH TO ADDRESS TIIE CITY COUNCil. Drew Krvnicki. 321 Leroy Avenue, stated in part, that as a source of revenue for the City, the COWlcil should look into the feasibility of having Bristol Fanns as a tenant on the currently vacated Foulger Ford property on Huntington Drive. Mr. KJynicki said he had been told by the Economic Development Administrator that Bristol Fanns is not a suitable tenant for the property. Melissa Ornelas. City employee and negotiating team member from the Teamsters Labor Union, which represents miscellaneous employees. stated in part that the membership's morale is low and has been for some time. She believes that the proposal presented to the Teamsters Union will not be received well by the membership. The miscellaneous employees have worked' with the City during budget problems by deferring salary illC1USes. However, with labor negotiations and layoff proposals, it appears that the Teamster bargaining unit will continue to bear the majority of the burden of the budget shortfall while other bargaining units receive raises and perks. and management staff increases in size. Ms. Ornelas appealed to the COWlcil's sense of fairness when making decisions regarding labor negotiations and layoffs that affect Teamster positions. I The City Manager responded to the comment made by Mr. Dnrw KJynicki to say that it is possible to change Redevelopment Agency Resolution No. ARA-I72 to allow uses in the area of the Foulger Ford property other than those currently provided for by the resolution. 1 6/4/96 3. () J :.1<' ".' O.3~() - 30 38:0l;8 Mayor Pro tern Hartlicht commented that Mr. Krynicki is aware that Bristol Fanns was I part of the proposed Santa Anita Entertainment Center. If Bristol Fanns were to occupy another property in Arcadia that would take it away from the Santa Anita project, and this may be pan of Mr. Krynicki's goal-to harm the project, Mayor Pro tern Harbicht felt that audience remarks such as Mr, Krynicki's should be responded to by Council. Council member Young suggested that staff look into how much sales tax is brought to the City of South Pasadena by Bristol Fanns and their cookware store, restaurant, and other things that are not grocery items, DISCUSSION AND RECOMMENDATION TO PROVIDE DIRECfION REGARDING THE CITY'S FISCAL YEAR 1996-1998 OPERA TlNG BUDGET AND THE FISCAL YEAR 1996-200 I CAPITAL IMPROVEMENT BUDGET The Administrative Services Director stated that the five-year Capital Improvement Program (CIP), Fiscal Years 1996.2001, is not a budget but a financial plan and the means of financing the projects, No authorization to spend funds exists until the first year of the program is presented to the Council in the budget. Once the budget is adopted each project or acquisition over S30,000 will be returned to the Council for review and authorization. This year, the five-year plan amounts to almost $26,000.000 in capital projects and S5,000,000 in equipment acquisition. The Administrative Services Director reviewed some of the major improvement projects in the first year of the plan. There will be a revision to the plan with regard to the first year's energy management system program amounting to $510,000, When the budget was put together it was thought that the program would not cost the City any out-of. pocket money. The Gas Company was to provide equipment and installation, the City would finance the $510,000 by signing a lease over 10 years and would pay for the costs out of the savings generated from energy costs. However, after reevaluation, it was found that the City would be better off by paying out-of-pocket and putting the savings into the General Fund. The Administrative Services Director also reviewed the projected costs of S5,OOO,OOO for equipment-most of it for vehicles and major pans. Another large portion of the CIP is for replacement of City computers and software, which become technologically obsolete approximately every five years. I The Administrative Services Director funher reviewed balances in the Capital Outlay Fund, Facility Construction Fund, and the Equipment Replacement Fund. He noted that without a significant increase in parimutuels from the Race Track or some other means, there are limited resources in the Capital Outlay Fund. There is a need to improve the Police Station. However, this is not in the budget. Costs are estimated at between SS million and S7 million for renovation, and $17.20 million for a new Police Station. Anoth~r project not budgeted for due to lack of funds is a major renovation of City Hall, which could amount to as much as $2,000,000. The only major projects in the Facility Construction Fund at this time are renovations to Fire Station No. 3 and, in later years, to Fire Station No. \. The Administrative Services Director reviewed the remaining funds-Gas Tax, Sewer, Parks and Recreation, Equipment Replacement, Water Facilities. and Water Equipment Reserve. The City Manager drew Council's attention to two capital improvement projects. One is land acquisition for the St. Joseph Plant at Secotid Avenue nOM of Santa Clara Street. It is proposed to replace a reservoir built in 192e, Acquisition of adjacent land owned by a private party is required. A portion of the property may then be sold for commercial or industrial development, netting some money back to the Water Fund. The other i11lportant project is the aforementioned energy management system program. I 2 6/4/96 " , .' , ,. " 38:0179 I The money is available to stan the program, which will be provided by the Gas Company. With summer here, the timing is right, as the air conditioning system. which is one system servicing City Hall and the Police Station, is constantly failing. With regard to the Equipment Replacement Fund, the City Manager stated that a reanalysis of the fleet and a centralization of fleet management is underway to ensure that funds are available to replace equipment when needed, The Administrative Services Director anSwered questions from Council with regard to the CIP, In response to a question from Mayor Pro tern Harbicht, the City Manager assured Council that every expenditure for equipment has been scrutinized. Purchases were delayed where possible. and only those which are truly necessary were placed in the CIP. 11Iis applies to computer equipment as well as vehicles. Analysis of the need for purchase of computer equipment has been centralized through the Administrative Services Division by means of an Information Systems Master Plan. The Administrative SeIvices Director pointed out that approximately ten years ago there was only one computer in City Hall; there are now 100, 11Iis is an expenditure which has been increasing greatly over the past few years, as has the price which must be paid for new fire trucks, sweepers. and other vehicles. The City Manager commented that the Library Foundation win be helping the City to buy furniture for the Library. and this win not be a General Fund or Equipment Replacement Fund expenditure. I The City Manager stated that during this fiscal year Council authorized funds to do a Drainage Master Plan, a Sewer Master Plan, and a Water Master Plan, based upon assessing the City's deficiencies and determining what it will cost to correct the deficiencies. During the summer and fall, staff will work with Council to discuss these master plans and also the Information Systems Master Plan. To implement all of the master plans would exceed revenue. The most important is the Water Master Plan. With regard to the fact that there is no money budgeted for a new or remodeled police station, Council member Young recalled that in the past there was discussion that there would never be enough money for a new police station, and at that time the possibility of a bond issue was suggested. It was the consensus of Council that it would be more cost effective to build a new police station rather than remodel the present building. Mayor Pro tem Harbicht suggested that the present Police Department building would then be available for needed City Hall offices. The City Manager suggested the possibility of selling or leasing the Annory property and holding it as a land or cash asset. A new police department building could be constructed in another location on the property and still keep the old station. As the Methodist Hospital expands, there will be the potential need for other medical offices, and the Annory is on a prime piece of property. The sale or lease of the Annory property could help pay for debt service on a bond. Another idea is to build a facility with lease space in it, such as for professional offices, and lease it for a short time to help pay for debt service. Mayor Pro tern Harbicht stated that if Council decides on a bond issue to finance a new police building, the community must be sold on the need for it. A citizens committee, such as helped get the School District bond issue passed, would be the best way to carry the message to the community, Staff will begin developing a policy paper and will submit some ideas, coneepts, and schedules to Council for review. Council member Lojeski suggested a master plan be made with regard to City Hall. to examine what is really needed and how best to provide for it. I Mayor Pro tern Harbicht brought up the matter of the proposed purchase of a pool car for the Administrative SeIvices Department. He asked if pool cars are being used in the most cost-effective manner. The City Manager said a review is being done, He will provide Council with a list of pool cars currently in use. 3 6/4/96 ~ 38:0l80 With regard to the cost of running a print shop in-house. it has been stUdied and I determined that it is more cost-effective than going out for printing services, The proposed purchase of a new tw(KQlor printing press will replace a non-<:olor printer which is over 30 years old and beyond repair, Staff is also working with the School District on the possibility of job-sharing printing needs. In reference to the purchase of furniture for the Library, it was clarified that the Library Foundation was formed specifically for the purpose of raising money to purchase new furnishings for the public portions of the Library, not for the staff areas, for which the City provides funds. Due to time constraints, Council continued the budget session to June 12 and 13, 1996, at 5:30 p,m, in the City Hall Council Chambers. ADJOURN- MENT At 7:05 p.m. the Adjourned Regular Meeting, Budget Session, ADJOURNED sine die. of Arcadia D. Kuhn, Mayor of ATTEST: I ~--"J~~ J D. Alford, ty Clerk I 4 6/4/96