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Home My WebLink AboutJUNE 5,2001 I I I ~IIO tto I 1/)(,,, (II 43:0097 ce CITY COUNCIL PROCEEDINGS ARE TAPE RECORDED AND ON FILE IN THE OFFICE OF THE CITY CLERK () ~ ':'f'} < () 061';. .::).5,- 0/11.)' 'IQ ROLL CALL 1, FY 2001-2003 OPERATING BUDGET () 'd()-~ d MINUTES CITY COUNCIL OF THE CITY OF ARCADIA and the ARCADIA REDEVELOPMENT AGENCY SPECIAL MEETING JUNE 5, 2001 As authorized by Arcadia City Charter Section 408 and California Government Code Section 54956, a Special Meeting of the Arcadia City Council and Arcadia Redevelopment Agency was called to be held at the Arcadia Community Center, 375 Campus Drive, Arcadia, Califomia, at 4:00 p.m. on June 5, 2001. Said meeting was called to consider the following items. 1. Discussion and direction concerning the Fiscal Year 2001-2003 City and Arcadia Redevelopment Agency Operating Budget and the 2001-2006 Capital Improvement and Equipment Program. (CITY COUNCIL AND AGENCY) . 2. Closed Session pursuant to Government Code Section 54957,6 to confer with City labor negotiators Sonny Markus, Dan Cassidy and William R. Kelly regarding Teamsters Local 911, APOA, APWEA, AFFA, Management and non-represented employees. (CITY COUNCIL) PRESENT: Council/Agency Members Chandler, Chang, Kovacic, Marshall and Segal ABSENT: None AUDIENCE PARTICIPATION None, BUDGET STUDY SESSION City Manager Kelly presented the proposed budget report to the City Council/Redevelopment Agency, which had been given to the Council/Agency on May 22nd to review. The budget listed FY 2000-2001 accomplishments in keeping with the priorities previously identified by the COuncil and staff. Substantial progress was made during the past fiscal year, including: Construction drawings for the new Police facility are being finalized; construction is underway on the new Arcadia Historical Museum; a Citywide sign program is being created for entry and directional sign age, and banners for commercial districts; a landscape architect was retained to evaluate the feasibility of a skateboard facility at Bonita Park; the City is in process of completing master plans for water operations, street trees, Library operations, street rehabilitation, parks rehabilitation, sidewalk/handicap ramps and information systems; commercial development continues with the proposed expansion of Westfield ShoppingTown Mall, redevelopment of the former Foulger Ford site and the proposed redevelopment in the commercial areas along Live Oak and Las Tunas Drive; City and School District projects, inCluding traffic safety, an upgrade of the Youth Master Plan, and on-campus programs such as DARE, GREAT and YES (Youth Education Support). Mr. Kelly noted the goal of the budget process is to establish service level efforts and funding in accordance with the service priorities set by the City Council for the coming budget period. In addition, he noted the budget process has adhered to the recommendations of the Citizen's 1 6/5/01 I 43:0098 Financial Advisory Committee. Highlights of the budget report indicated: the Emergency Reserve Fund is not below 10% of the proposed budget; the Emergency Reserve Fund of 20% I of the General Fund Budget was restored in FY 2000-2001 and remains funded in the , proposed FY 2001-2003 budget; since the current Emergency Reserve Fund is adequately funded at the recommended 20% and with General Fund surpluses, the remaining funds have been targeted for infrastructure improvements; all factors were considered in the selection process and the audit firm of Conrad and Associates was retained in FY 1999-2000; excess balances in the Medical/Dental Insurance Reserve are proposed to fund inadequate reserve levels in the Workers' Compensation/Liability Insurance Fund. A complete analysis of these restricted funds, reserve levels, and how they should be utilized was completed in FY 2000- 2001; a policy has been established to fund the new Capital Improvement Fund. and a review of the existing depreciation methods has been completed, and funding strategies are incorporated in the proposed FY 2001-2003 budget; the fund balance in the Equipment Service Fund is estimated to be zero in both fiscal years of the proposed budget; the City has a formal succession plan and delegation of authority to the investment process for City funds; a written policy is in place for controlling the investment process; City staff report on a monthly basis the results of the investment activity and explain any variance in excess of 10% between the City's investment returns and the LAIF index; a Cost Allocation Plan has been completed and the allocation methods recommended are proposed in the FY 2001-2003 budget. , The General Fund revenues for FY 2001-2002 are estimated to be $30,502,230 from all sources for FY 2001-2002, which represents an 8.7% increase from the original estimates for the 2000-2001 FY of $24,186,800, As indicated in the mid-year budget report. February 6, 2001, staff projected that FY 2000-2001 revenues were anticipated to be $2,7 million higher than originally estimated. Revenue increases are anticipated in sales tax, property tax, and approximately 5% in other taxes. Expenditures in the General Fund total $28,839,026, a 1% increase from the 2000-2001 FY I adopted budget, representing an increase in operations, exclusive of employee salaries. Changes in City department budgets was briefly reviewed. FY 2001-2006 The City Manager reviewed the Capital Improvement and Equipment Replacement Program CAPITAL (CIP) for FY 2001-2006, The CIP is a general financial plan for such expenditures and the IMPROVEMENT proposed means of financing them, The program is intending to forecast a schedule of major & EQUIPMENT expenditures for the City's infrastructure (I.e" buildings, parks, roads, sewers, water systems ACQUISITION and similar projects), and for equipment acquisition over a five-year period. PLAN The proposed Capital Improvement Projects for the five-year period (2001-2006) are .J 3..) V . 3 CI segregated into the following major categories and estimated costs; Total $ 5,900,333 13,239,900 3,189,970 18,808,862 691.729 $41,830,794 Streets Building and Grounds Sewer/Storm Drains Water Parks Funding for these projects is obtained from numerous sources. The proposed projects for FY 2001-2002 are estimated at approximately $24,100,000. Equipment acquisition over the five- year plan is estimated at $8,221,350. The City Manager reviewed various proposed five-year projects, including the reconstruction of Fire Station No, 105, located on Santa Anita Avenue above Duarte Road, or the possible relocation of this Fire Station to a southern area of the City and moving Fire Headquarters to I Fire Station No. 106, at the northeast corner of Baldwin Avenue and Huntington Drive. It was noted if Fire Station No. 105 is relocated, the site on Santa Anita could possible be used for a 2 6/5/01 I I I .....o' "','1 43:0099 housing project. City Manager Kelly presented a proposal for funding new Master Plans for the City infrastructure. This in addition to two other Master Plans currently established (Water and Sewer): Proposed Master Plans Street Rehabilitation 5 year cycie $ 9.4 million $ 863,000 annually o 1.Jf' Street Trees 20 years 4.4 million 220,000 ,1 Transportation 15 years 6,9 million 460,000 Parks Rehabilitation 15 years 3,09 million 206,000 City Buildings 50 years 55.0 million 1, 100,000 Sidewalks (commercial) 3 years 1.3 million 430.000 Vehicles/Equipment 20 years 13.4 million 671,000 Totals $93.49 million $3,950,000 annually Water system 5 years $19,006 million $3,810.000 annually Sewer system 5 years 1.109 million 222,000 annually DEV. SVCS, STAFFING NEW POSITIONS SIGN/CODE ENFORCEMENT MASTER PLAN FUNDS WORKERS' COMPo In his presentation, the City Manager noted this would include 15% for permanent staff or contract personnel to do these projects, Mr. Kelly commented the proposed Master Plans are presented for Council's consideration to spend the remaining revenue in the General Fund, to go back into the City infrastructure. He noted, all of the proposed projects wouid not be compieted in one year. The $3.9 is offered as a multi-year investment basic plan. The City Manager advised there is a great need for infrastructure improvements. The Development Services Director reported that Development Services. staff will study current leveis of service and procedures, This with respect to customer service, permits, code enforcement, design review, planning, building and business license, before adding a new position to the department and on-going costs, In response to a, Council question, staff advised, 7,25 new positions are requested, this includes one Code Enforcement Officer. Staff will provide a one-page summary job description of the requested positions by the end of this week or next week. In reference to General Fund funds of $5,000 to upgrade the sign regulations and $46,000 for a Code Enforcement Officer in the proposed operating budget, staff noted, the budget can be amended after the study of Development Services operations, Councii suggested the $3.9 million be placed in a Master Plan Fund each year, then program the funds and prioritize the Master Plans. The City Manager said staff could present each Master Plan to Council for review. then prioritize the projects, Mr. Kelly suggested the $3,9 million be left in the budget program this year and targeted to the Master Plans, The City Manager explained the increase in the Workers' Compensation Fund, which was underfunded, and a large case is pending, Considerable discussion ensued with staff responding to questions regarding communications and marketing; upgrading the Civic Center complex; the railroad bridge decoration; senior housing; traffic signals; and. restricted reserve funds. REFUSE RATE In reference to an adjustment to the refuse contract, staff noted the City's refuse contractor, INCREASE Waste Management, is due an increase in rates in accord with the contract. 3 6/5/01 43:00100 WATER & Following a discussion regarding an increase in water and sewer rates, it was MOVED by I SEWER RATES Council member Kovacic, seconded by Council member Marshall and CARRIED by Council (NO INCREASE) consensus to AUTHORIZE the City Manager to announce that Council is changing the agenda, the water and sewer increases will NOT be considered and the public hearings scheduled for June 19th will be CANCELED. The City Manager noted he would like to have a discussion with the Council and the public at the June 19th meeting about the importance of recycling and compliance with AS 939. The City must be creative and serious about the recycling issue. At 6:06 p,m. the Redevelopment Agency RECESSED and the City Council ENTERED the Close Session. 2a. 0//080 CLOSED SESSION Pursuant to Government Code Section 54957.6 to confer with City labor negotiators Sonny Markus, Dan Cassidy and William Kelly regarding Teamsters Local 911, APOA, APWEA, AFFA, Management and non-represented employees, ADJOURNMENT At 6:40 p.m, the City Council and Arcadia Redevelopment Agency RECONVENED and the Special Meeting ADJOURNED sine die, ATTEST: 4 6/5/01 I I