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HomeMy WebLinkAboutCC_1983-07-11 Adjourned Meeting Minutes 3pmMORRO BAY CITY COUNCIL ADJOURNED MEETING - JULY 11, 1983 RECREATION HALL -- 3:00 P.M. AEND?NO. Da - Data. Action Mayor Shelton called the meeting to order at 3:00 p.m. and announced that this was an adjourned meeting of the City Council to consider the proposed budget for 1983--84 Present were Mayor Shelton, Councilmembers Anderson, Lemons, Risley and Zeuschner; staff memebers Paul Baxter, Murrel Crump, Dave Howell, Gary Napper, Nick Nichols, Gere Sibbach, Steve Wolter, Bernie Zerr and Peggy Buchanan Mr. Baxter stated that two additional items had been prepared for Council consideration, those being a Resolution regarding water and sewer rate increases, and a report requesting Council direction regarding the allocation of Community Promotions monies. Mr. Baxter also noted that there were two Public Hearings scheduled for the regular meeting at 7:30 p.m., consideration of an ordinance to increase the bed tax, and consideration of an ordinance to establish a 3% utility users tax. Mayor Shelton stated that this was a Public Hearing, and invited the audience to feel free to speak at any time during the meeting A. RESOLUTION INCREASING WATER AND SEWER RATES: Mr. Sibbach briefly reviewed the Resolution, and the amount of increase proposed Councilmember Risley stated that as proposed, this Resolution does not conform to the rate schedule adopted last year, and felt that the water rates should be increased by a flat 5 rather than the different adjustments proposed. Councilmember Risley felt that it was not an appropriate time to consider these rate increase, considering that two other revenue increasing measures were being prepared Councilmember Lemons stated that the rate structure as adopted last year was unfair to many residents, and gave many out of town property owners a "break". Councilmember Lemons felt that Council should reconsider the water loan or other methods to increase revenues so as to complete the water line replacement in a timely manner. Mr. Ray Kaltenbach felt that the loan should not be accepted, as it would not complete the water line replacement project. Council discussed the status of the water line replacement project, and the amount of work proposed for next year. 1 MORRO BAY CITY COUNCIL ADJOURNED MEETING - JULY 11, 1983 PAGE TWO Councilmember Risley felt that the present course for waterline ✓ eplacement was adequate, and if the Council can work toward a change in legislation to allow City crews to do the work, this would almost double the amount of water line the City would be able to afford to replace. Councilmember Zeuschner felt that a time frame for this ✓ eplacement had been calculated earlier, but there were variances that could not be calculated that cause delays in the schedule. Councilmember Zeuschner stated that the most important point is t hat the City go forward as quickly as possible and not abandon t he committment to replace the water lines. Bob Lane offered Council several alternatives to raise additional ✓ evenues, including an amendment to the full-time City Attorney budget; raising the construction hook-ups for water and sewer to $2,000, and freezing the number of employees and by attrition ✓ educing the total number of employees by 10%. Howard Gaines felt that the City should make personnel cuts, and cut other expenditures rather than trying to raise additional ✓ evenues. Councilmember Risley presented a chart showing that the trend in General Fund reserves from 1981 to date and projections in the future show a huge decrease in reserves. Councilmember Risley stated that he felt the proposed cuts in this year s proposed budget were in the wrong areas, and have not squeezed the City's ✓ xpenses adequately. Mayor Shelton asked if Councilmember Risley had any specific suggestions for additional cuts. Councilmember Risley stated that increases for water and sewer ✓ ates should be tabled. Councilmember Lemons asked what the increased rates would generate in revenues? Mr. Baxter stated that approximately $28,000 would be raised. Council discussed various hook-up rates throughout the County, and noted that the highest were in Cayucos, $1,725.00. Mrs. Collier stated that expenditures needed to be cut rather than increasing fees or taxes. Bob Lane suggested a raise in hook-up fees. 2 MORRO BAY CITY COUNCIL ADJOURNED MEETING - JULY 11, 1983 PAGE THREE Councilmember Anderson felt that perhaps water and sewer hook-ups should be increased as staff proposed, and a study made of the fees necessary to complete the 10-year waterline replacement schedule. Councilmember Anderson noted that fees could be increased as necessary in 6 months at the completion of this study. Council discussed increasing the hook-up fees to $1,500. MOTION: Councilmember Zeuschner moved that the Resolution increasing water and sewer user rates be amended to reflect $1,500.00 for water and sewer availability hook-up charges. The motion was seconded by Council - member Risley and carried unanimously. (5-0) Council then discussed the rates for water and sewer as proposed. MOTION: Councilmember Zeuschner moved that the Resolution increasing water and sewer user rates as amended above be adopted. The motion was seconded by Councilmember Risley and carried by the following roll call vote: AYES: Zeuschner, Anderson, Lemons, Shelton NOES: Risley ABSENT: None Council then discussed the rate increases, and last years rate schedule. Mr. Sibbach stated that the figures for this years increase were taken from Brown and Caldwell's calculations. B. COMMUNITY PROMOTIONS: Mr. Baxter recommended that Council maintain the existing level of funding for the Chamber of Commerce, and any additional allocations be administered by the City Council. Councilmember Risley noted that Measure A should still be taken into consideration as it was still valid to those who voted for it. Councilmember Risley felt that the Chamber should receive 5% of any additional revenues, with Council retaining control over spending for community promotions. 3 MORRO BAY CITY COUNCIL ADJOURNED MEETING - JULY 11, 1983 P AGE FOUR Councilmember Anderson stated that perhaps a community groups should get involved and help to plan a program for Community P romotions. Council discussed possible alternatives for community promotions spending. Howard Gaines stated that Council shouldn't ignore public vote and spending should be kept under control. Mayor Shelton stated that Chamber of Commerce and Community P romotions were not necessarily the same. Council concurred that the funding for the Chamber of Commerce should remain as proposed in the budget, with any additional funds allocated for community promotions controlled by the Council. Mr. Baxter stated that staff would prepare a report outlining a proposed system for Community Promotions spending, and providing information regarding the Chamber of Commerce contract, with a draft of guidelines for reporting. MOTION: The meeting 5:00 p.m. Councilmember Zeuschner moved that the meeting be adjourned to the City Hall Conference Room, to hold interviews for the TV Franchise and Cable Services Board. The motion was seconded by Councilmember Anderson and carried unanimously. (5-0) was adjourned to the City Hall Conference Room at RESPF,CTFULLY SUBMITTED, P EGGY MC([)ANAN DEPUT CITY CLERK 4