Minutes 2001-05-31
MINUTES
SPECIAL MEETING OF THE CITY COUNCIUREDEVELOPMENT AGENCY
THURSDAY, MAY 31, 2001
COUNCIL CHAMBERS, 215 EAST BRANCH STREET
ARROYO GRANDE, CALIFORNIA
1. CALL TO ORDER
The City Council/Redevelopment Agency of the City of Arroyo Grande met in special
session at 6:30 p.m. to consider the Fiscal Year 2001-02 Preliminary Annual Budget, with
Mayor/Chair Michael A. Lady presiding.
2. ROLL CALL
Mayor/Chair Lady, Mayor Pro TemNice-Chair Ferrara, Council/Board Member Runels,
Council/Board Member Dickens, and Council/Board Member Lubin were present. Staff
members present were City Manager Adams, Chief of Police TerBorch, Director of
Administrative Services Wetmore, Director of Building and Fire Fibich, Public Works
Director Spagnolo, Parks, Recreation, and Facilities Director Hernandez, Community
Development Director McCants, Financial Services Director Snodgrass, and Economic
Development Director Sheeley.
3. FLAG SALUTE
Mayor/Chair Lady led the Pledge of Allegiance.
4. CITIZENS' INPUT. COMMENTS. AND SUGGESTIONS
Carl Brandt, President of the Arroyo Grande Firefighters' Association, spoke on behalf of
the Association and expressed support for the proposed funding for a3rd Fire Captain. He
explained that this would result in full-time coverage at the Fire Station. He thanked the
Council for its continued support of the Department.
Jonni Biaggini, Executive Director, San Luis Obispo County Visitors and Conference
Bureau, acknowledged the City's support this past year and expressed appreciation for
the funding. She requested the Council consider an increase in funding next fiscal year to
support the SLOVCB's programs.
5. CONSIDERATION OF FISCAL YEAR 2001-02 PRELIMINARY ANNUAL BUDGET
City Manager Adams presented the FY 2001-02 Preliminary Budget to the City
Council/RDA Board Members. He explained the Budget presentation would include an
overview of goals and accomplishments, revenue projections, fund balances, expenditure
and service level recommendations, capital improvement program, and other issues. He
stated the total budget for 2001-02 was $15,095,853 (8.8% decrease); the General Fund
budget was $9,685,455 (1.9% increase), and the projected year-end available fund
balance in the Reserve Fund was $822,800, a $377,988 increase over the FY 2000-01
amended budget. City Manager Adams then gave a brief overview of issues facing the
SPECIAL CITY COUNCIURDA MEETING MINUTES
MAY 31,2001
PAGE 2
City; the overall budget process; budget priorities for FY 2001-02; accomplishments
during FY2000-01; and goals for FY 2001-02.
Financial Services Director Snodgrass presented an overview of projected 2001-02
Citywide Revenues and Transfers ($17,147,000); reviewed how revenue projections are
made; reviewed types of revenue sources; reviewed growth trend of Citywide revenue;
projected a 2% increase of General Fund revenues; reviewed recurring and one-time
revenues; and reviewed the trend of General Fund revenue growth over the past seven
years. Financial Services Director Snodgrass then reviewed the City's projected Fund
Balances for 2001-02, including General Fund ($1,183,100), Special Revenue Funds
($2,986,200), and Enterprise Funds ($5,927,100).
City Manager Adams gave an overview of City expenditures; methods to address
Redevelopment Agency operating shortfall; methods to increase City reservas; and
methods to address projected utility cost increases; plans for infrastructure maintenance;
proposed funding for the addition of one paid Fire Captain position as a result of the Fire
Department Needs Study; goals to address findings as a result of the City's Risk
Management Study; proposed funding for replacing outdated vehicles/equipment; and
proposed funding for other personnel and project-related items.
Director of Public Works Spagnolo gave an overview of the City's Five-Year Capital
Improvement Program (CIP). He stated that for FY 2001-02, there were 32capital projects
budgeted totaling $7,291,550,66% of which are street projects. He gave a brief overview
of the major projects and projects that may be funded by future grant funding.
Director Spagnolo answered questions from Council regarding projects on The Pike,
Huasna Road, Rancho Grande Park, and for widening Oak Park Boulevard.
Council Member Dickens inquired about plans for improving the City's public restroom
facilities. Director of Parks, Recreation, and Facilities Hernandez responded that
American with Disabilities Act (ADA) retrofits at the public restrooms are funded by
Community Development Block Grant (CDBG) funds, and that staff would be pursuing
other funding mechanisms to accomplish further improvements to the City's public
restrooms.
Director Spagnolo continued with an overview of the FY 2001-02 CIP Proposed Funding
Sources, and FY 2001-02 CIP Expenditures by Project Type. He answered questions
from Council regarding the status of the Reservoir #1 project.
City Manager Adams concluded the budget presentation by reviewing other budget issues
that would require future Council direction, such as the City's financial system upgrade,
community organization request process, legal services budget recommendations, and
other City Council requests/issues.
SPECIAL CITY COUNCIURDA MEETING MINUTES
MAY 31,2001
PAGE 3
Further Council questions and discussion ensued regarding the proposed financial system
upgrade/conversion; clarification on the three-year plan for replacing Police Department
vehicles; funding issues related to Redevelopment Agency projects; the placement of
various documents on the City's web site; the projected date the City could realistically
meet its reserve goal of 15%; the potential for upgrading the Council Chambers to
accommodate televised Council meetings in the future; and clarification on proposed
funds for Public Works contractual services as it relates to the Assistant City Engineer
position.
Mayor Lady opened up the item for public comment.
Dave Spaur, CEO, Economic Vitality Corporation, announced his last day as CEO would
be tomorrow. Ray Johnson has been appointed as interim CEO. He spoke in support of
the EVC's request for continued funding and relayed some of the EVC's goals for
improving better tracking and reporting of activities.
Jonni Biaggini, SLO County Visitors and Conference Bureau, spoke in support of their
funding request and requested that the funds not be taken from the Redevelopment
Agency budget. She requested that the funds be associated with the City's Transient
Occupancy Tax.
Mayor Pro T em Ferrara indicated the City was looking into the potential for generating
additional revenue through a tourism assessment fee and the Council would be receiving
further information regarding the issue at a future meeting.
Hearing no further public comments, Mayor Lady closed the public comment period and
brought the issue back to Council for questions and discussion.
Mayor Pro Tern Ferrara referred to a typographical error to be corrected on page 71,
Department account 4426. He referred to page 247 and inquired how Public Works
positions are funded. Director Spagnolo responded that most of the engineering positions
are divided among the administration and enterprise funds in the Public Works budget.
Mayor Pro Tem Ferrara referred to page 280, CIP Project Summary by Type of Project,
and asked for a brief overview of the line item detail for the EI Campo PSR and 5-Cities
Center. Director Spagnolo responded that the funds for the EI Campo PSR are a
carryover from the previous budget year, and explained the account for the 5-Cities
Center was an expenditure recovery account that is used for collecting reimbursements
from the developer for the project.
Mayor Pro Tern Ferrara referred to the population figure of 16,426 on page 323 and asked
the source of the figure and if the growth rate had been factored in.
SPECIAL CITY COUNCIURDA MEETING MINUTES
MAY 31,2001
PAGE 4
There was further discussion regarding the population figure and Mayor Pro Tern Ferrara
suggested that for planning and budgeting purposes, the City should determine which
figure was going to be used. .
There was no further discussion.
6. ADJOURNMENT to the next Regular Meeting on Tuesday, June 12,2001 at 7:00p.m.
Time: 8:50 p.m.
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