HomeMy WebLinkAboutCC_1983-05-23 Budget Workshop Meeting MinutesMORRO BAY CITY COUNCIL
ADJOURNED MEETING - BUDGET WORKSHOP
MAY 23, 1983 - 4:00 P.M.
RECREATION HALL
Mayor Shelton called the meeting
following members present:
PRESENT: Eugene R. Shelton
Rodger J. Anderson
John Lemons
Bruce Risley
Bud Zeuschner *
(* arrived late)
STAFF:
Paul Baxter
Murrel Crump
Dave Howell
Gary Napper
Nick Nichols
Gere Sibbach
Steve Wolter
Bernie Zerr
Peggy Buchanan
ENDA NO.. D-1
Date CA 3 Action
to order at 4:00
p.m.
Mayor
Councilmember
Councilmember
Councilmember
Councilmember
with the
City Administrator
Community Development Dir.
P olice. Chief
Assistant to City Admin.
P ublic Works Director
Finance Director
Recreation Director
Fire Chief
Deputy City Clerk
Mayor Shelton stated that this was a budget workshop for the
purpose of considering the proposed budget for fiscal year 1983-
84.
Mr. Baxter provided Council with an overview and summary of the
proposed budget, and reviewed the revenue picture, the status of
the operating budget, the expected deficit to the General Fund,
as well as outlining areas such as the water, sewer and harbor
funds.
Mr. Sibbach noted that revenues had dropped this last year, and
the City would now have to be looking at cuts in services in
order to balance the budget. Mr. Sibbach explained that non -
dependable revenue sources such as fees for water and sewer
availablity as well as Federal Revenue Sharing, were recommended
to be used for one-time only expenditures such as capital
projects.
Mr. Baxter stated that each department would now provide Council
w ith a summary of their proposed budget.
Mr. Baxter reviewed the proposed budget for Administration,
w hich includes the City Council, City Administrator, and City
Attorney. He noted no major changes to the City Council portion,
e xcepting increased costs for liability, and worker's
compensation insurance and health benefits. The proposed budget
for the City Administrators office showed one major increase for
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MORRO BAY CITY COUNCIL
BUDGET WORKSHOP - MAY 23, 1983
P AGE TWO
t he municipal election scheduled for June 1984, as well as an
additional $4,000 increase in the City Attorney's budget, for
anticipated legal expenses. Mr. Baxter noted that a savings
might be realized by changing the June 1984 municipal election
date to consolidate with the November election, and also added
that in light of the recent claims against the City regarding the
San Mateo boating incident, a $4,000 increase to the City
Attorney's budget might not be substantial enough.
Gary Napper covered the Personnel portion of the Administration
budget, and noted that the largest increase would be fora labor
✓ elations negotiation contract, with smaller costs being for
items such as the mid -management training program and a memory
typewriter.
Mr. Baxter reviewed the charges assessed the non -general funds
such as the Harbor Fund, which reflects an increase. Mr. Baxter
n oted that the contract for property management services would be
increased and a half time clerical position would be added and
these costs would be charged to the Harbor Fund.
Mr. Baxter also described a proposed Revenue Sharing project to
e xpand City Hall by approximately 1,000 square feet, to be used
for storage of records and supplies. Mr. Baxter noted that
current records are being stored in an area of Willard's Barn and
have suffered damage during the recent wet weather.
Councilmember Lemons asked what the revenue sharing funds were
for this year.
Mr. Sibbach stated that if Revenue Sharing was renewed at the
current rate, there would be approximately $238,000 available,
from carry-over funds, interest and new funds.
Mary Phillips suggested that Revenue. Sharing monies be used for
Dial -A -Ride.
Finance - Gere Sibbach reviewed the proposed budget for the
Finance Department, and noted that no major changes were
proposed. The Finance Department was requesting a continuation
o f the Harbor audits for one additional year, and the replacement
o f a vehicle.
Mr. John Laniers questioned the Council regarding the use of City
pool cars.
Mr. Sibbach stated that the cars are used for in and out-of-town
City business, and noted that the City currently has 2 1980
Toyotas, 1 1976 Valiant and a 1968 Chevrolet, proposed to be
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MORRO BAY CITY COUNCIL.
BUDGET WORKSHOP - MAY 23, 1983
PAGE THREE
replaced, due to increased maintenance costs and its lack of
dependability for out-of-town travel.
Recreation - Steve Wolter reviewed the proposed budget for the
Recreation Department, and noted areas proposed to increase. Mr.
W olter stated that the building maintenance division would be
increased by the expansion of the custodial contract. Mr. Wolter
reviewed current projects, and policies regarding the control of
City buildings.
Katherine Walling spoke regarding Coleman Park, and stated that
she hoped the City had not abandoned the Park, and felt that some
improvements should be made to it immediately.
There was a brief discussion regarding improvements around Morro
Rock.
(Councilmember Zeuschner arrived at this point in the meeting.)
Community Development - Mr. Crump reviewed on -going projects
w ithin the department, and noted that in the proposed budget the
inspections services of the Public Works and Building Department
w ould be combined, with a reassignment of personnel to the
Community Development Department. Mr. Crump reviewed other areas
o f the budget and stated that there were no other major changes.
P olice - Chief Howell informed Council that no new personnelwere
being recommended and that there were increases proposed for
✓ eplacement of vehicles, and radio equipment. Chief Howell
✓ eviewed several proposed changes within the department regarding
personnel assignments and the use of non -sworn personnel. The
Chief also noted that building renovations were proposed to begin
t his year, to be phased over several years.
Fire - Chief Zerr stated that the budget proposed wil].maintain the
current level of service, with additional EMT II training
proposed as well as some equipment for the new engine and the
beginning of renovations for the fire station.
P ublic Works - Mr. Nichols informed Council that this year's
proposed budget for the Public Works Department reflects a 22%
✓ eduction in expenditures. Mr. Nichols related that the
Engineering Administration section would be decreased by one
engineering assistant, and inspection services would be
t ransferred to the Community Development Department. The
property maintenance division would also be reduced by 32%, with
the custodial contract under the Recreation Department budget
being increased to handle the extra workload. Mr. Nichols noted
t hat the transportation and street funds had been reduced, and
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MORRO BAY CITY COUNCIL
BUDGET WORKSHOP - MAY 23, 1983
PAGE FOUR
storm drain projects had been deleted. Mr. Nichols informed
Council that the deletion of 3 positions was being proposed, as
street repair and maintenance had been reduced by 70%, and water
line replacement would also be decreased. There would be a
transfer of one half-time street and half-time sewer person to
full time sewer person. Mr. Nichols stated that there would be
increases for certain capital outlay items, such as repairs to
the Harbor Patrol boat, the replacement of a vehicle, and
computer software.
Gladys Swass spoke regarding the proposed cut -backs to Dial -A -
Ride, and felt that many senior citizens in the city would be
adversely affected by any cut -back in service or hours.
Nick Nichols stated that many options had been considered, and
that due to the large amount of money being subsidized by the
General Fund, it had been determined that these cut -backs were
necessary.
Ms. Swass questioned the amount of the savings, and noted that it
would have an impact on all residents.
Gere Sibbach noted that the General Fund assistance to Dial -A -
Ride will have to be about $67,000 even at the proposed reduced
levels of service, and including a rate increase. Mr. Sibbach
stated that the farebox revenues only bring in about $19,000 and
it costs upwards of $200,000 to operate Dial -A -Ride.
Mayor Shelton noted that Morro Bay is the only City in the County
currently using all of its gas tax monies towards transit.
Lila Keiser noted that there are 2,828 citizens over the age of
60 living in Morro Bay, and their transportation needs are
important to the businesses in town, and referred to the
petitions that had been presented in support of Dial -A -Ride.
Mary Phillips suggested that split shifts, Sunday service and the
use of Revenue Sharing Monies would make up the deficit. Mrs.
Phillips felt that the hours of operation should be expanded and
that Dial -A -Ride could also be used to transport school children.
Mayor Shelton noted that the main problem is financial, that the
farebox does not create sufficient revenue to pay for the bus,
and the City cannot afford to continue subsidizing from General
Fund monies.
George Rubaloff, Administrative Assistant in the Public Works
Department, noted that there are many performance indicators that
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MORRO BAY CITY COUNCIL
BUDGET WORKSHOP - MAY 23, 1983
PAGE FIVE
can be referred to that show that Saturdays are low ridership
days and therefore the most logical day to cutback service. Mr.
Rubaloff also noted that there are other methods of
transportation available to senior citizens in the form of the
Run About and North Coastal transit services.
Councilmember Lemons stated that he had requested information
about the feasibility of operating Dial -A -Ride using station
wagons or vans, and had not received this information from staff
as yet.
George Rubaloff stated that such information would be compliled,
and noted that the major cost to this system would be the
purchase of vehicles and gas and maintenance.
Councilmember Risley suggested that an ad -hoc committee be set-up
to review the Dial -A -Ride operation, and study alternatives to
the proposed cut -backs, as this was a vital service to the
community.
There was a discussion regarding revenue necessary to continue
current services.
Mr. Baxter stated that the Dial -A -Ride was the most customized of
all transit services, and noted that although the City did not
expect the farebox to ever meet total operating costs, it was too
far from actual costs for the City to subsidize.
Mayor Shelton asked Councilmember Risley to chair a committee to
study Dial -A -Ride and asked him to appoint members to this
committee and bring back recommendations for Council
consideration.
There were several other comments relating to the operation of
the Dial -A -Ride buses and the proposed service cut -backs.
Councilmember Zeuschner suggested that any additional comments or
suggestions be directed to Councilmember Risley for the review by
the committee.
Mr. Ray Kaltenback stated that he felt the City should continue
its water line replacement program as always, and should not
worry about litigation threats.
Mary Phillips spoke regarding the condition of Ironwood Street,
and felt that the County should be made to repair and maintain
portions of the street that the Whale Rock Reservoir pipeline is
under.
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MORRO BAY CITY COUNCIL
BUDGET WORKSHOP - MAY 23,.1983
PAGE SIX
N ick Nichols stated that the original agreement regarding the
installation and maintenance of this pipeline would have to be
examined.
Councilmember Anderson was concerned over the deletion of all
storm drain projects, and questioned whether this would be cost-
e ffective in the long run if severe flooding should result from
any of these problem areas.
Mayor Shelton asked if there would be sufficient crew remaining
o n the street crew to do a satisfactory job.
N ick Nichols stated that the Department would have to concentrate
o n remedial areas, and would not be able to do the type of job
t hat is needed.
Mr. Baxter stated that if revenues continue to drop, the Council
might have to consider dropping the entire street paving program
u nless additional revenues are found.
S teve Economan, employee with the Public Works Department and
✓ epresentative of the Employee's Association, stated that the
Association was deeply concerned about the proposed layoffs, and
n oted that there are items contained in the proposed budget that
could be cut and are needless, such as equipment and vehicles.
Mr. Economan also felt it would be a better idea to move the
cleaning and maintenance of the sewers over to the Street
Department totally.
Mr. Baxter related that the balance of the proposed 1983-84
budget was Non -Departmental, which consisted of items such as
printing, postage, aid to other agencies, and community
promotions.
Councilmember Risley stated that he had a lengthy list of
✓ equests regarding the budget material, but would present this
list later on in the meeting.
MOTION:
Councilmember Risley moved that the meeting to
adjourned to the regular meeting at 7:30 p.m. The
motion was seconded by Councilmember Lemons and
carried unanimously. (5-0)
The meeting was adjourned at 6:10 p.m.
RESPECTFULLY SUBMITTED,
P EGGY BUCHANAN
DEPUTY CITY CLERK
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