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HomeMy WebLinkAbout05-27-1997 City Council Minutes MINUTES SARATOGa CITY COUNCIL TIME: Tuesday, May 27, 1997 - 5:00 p.m. PLACE: Administration Conference Room, 13777 Fruitvale Avenue, and Senior Day Care Center, 19655 Allendale Avenue TYPE: Adjourned Regular Meeting 1. Roll Call - 5:00 p.m. (Administration conference Room) CoUncilmembers Bogosian, Jacobs, Shaw, Wolfe, and Mayor Moran were present. Also present were Interim City Manager Perlin, Finance Director Fil, Recreation Director Joan Pisani, Deputy City Clerk Cory. 2. Report of city Clerk on Posting of Agenda Pursuant to Government Code 54954.2, the agenda for this meeting was properly posted on May 23. The notice of adjournment from the May 21 Council meeting was properly posted on May 22. 3. Closed Session pursuant to Section 54957,6: CONFERENCE WITH LABOR NEGOTIATOR Agency negotiator: Liebert, Cassidy and Frierson Employee organization: Saratoga Employees Association 'The Mayor reconvened to open session at 6:00 p.m. and announced that no actions had been taken. 4. Interviews with City. Manager Recruitment Firms A. Ralph Andersen and Assoc. - 6:00 p.m. B. Hughes Perx7 and Assoc. - 6245 p.m. The interviews were conducted as scheduled. Councilmembers discussed the firms interviewed and the other firms which had submitted proposals. 5. Oral communications from the Public on Non-Agendised Items - 7:30 p.m. (senior Day Care Center) - None. 6. Budget Workshop/Joint Meeting with Finance Advisory Committee A. Staff presentation on revisions to draft budget presented on May 13. Mr. Fil projected overhead transparencies showing six major areas of revision to the budget since the previous workshop on May 13, starting with the projects showing possible uses of the Parks Development Fund as requested by the City Council at the last budget meeting. Mayor Moran stated she would like to have a meeting for the Council to receive public testimony about the revised priorities for uses of the Parks Development Fund which were proposed by the Parks and Recreation Commission. She feared the budget "placeholders" would give the public the impression that the Council had already made the decisions. She favored deleting the projects from the budget until the Council decided what projects to fund, at what level to fund them, and the appropriate timing for the projects. Councilmember Jacobs agreed and noted that the Council itself had not discussed the Commission's recommendations. Councilmember Wolfe agreed and pointed out that the high school wanted the Council to consider using the funds for a swimming pool. Mr. Fil responded that he would remove the projects, and it would not affect the General Fund. He continued to review the other budget changes, including the Building Rental and Civic Theater Surcharge Fund; the revised estimated revenues for the Recreation Department; minor reallocations of indirect costs; smaller transfers from General Fund than previously estimated; higher General Fund balance than previously estimated. City Council Minutes 2 14ay 27, 1997 Mr. Perlin then reviewed how the Pavement Management Program enables the City to reach a "steady state" in which the value of pavement deteriorating in a given year is equal to the value of pavement replaced. He reviewed two alternative methods of reaching steady state. It can be reached more quickly by putting more money up front (the full recommended program). Putting in less money per year over a longer period of time (the "target" program) results in greater costs over the long term. Councilmember Shaw pointed out that the graphs for both programs remain at approximately the same slope for the first five years, which may give the City some breathing room. Councilmember Wolfe thought that the target program might be a good compromise. In answer to Councilmember Shaw, Mr. Perlin stated that the recommendations of the Pavement Management Program are evaluated and fine-tuned each year on the basis of direct observation. Mr. Fil then distributed and explained the Program Analyses and Standards of Performance documents. Mayor Moran asked how the Council could track performance standards of Volunteer Services. Mr. Fil stated that Volunteer Services were part of Program 7077, and the standards would be]in that program. At least 50% of the Administrative Analyst function would be as Volunteer Coordinator. He expected better service with the oversight of the Administrative Services Director. Jim Ousley asked questions as a member of the Finance Advisory Committee. Mr. Fil explained the large shift in the indirect cost allocation in Recreation. Mr. Ousley then stated there should be a written plan, with goals and milestones, for Recreation to achieve complete cost recovery, including indirect costs. In answer to another question from Mr. Ousley, Mr. Fil then explained where the funds for City Manager recruitment were allocated. As to funds for overtime and temporary help for vacations, Mr. Perlin explained that the only employees eligible for overtime pay are certain maintenance workers and, perhaps, a very few clerical workers. The greatest overtime cost is for public works emergency callout, which probably does not exceed $10,000. Mr. Fil stated he would include that in the back of the budget as part of the recapitulation. Mayor Moran said she was interested in total cost of wages and benefits, since some people were concerned the City spent too much on salaries. Mr. Fil stated he would perform a trend analysis on it. Mr. Ousley then stated there was a possibility that the development staff could be self-sufficient, but if fee revenue does not meet expectations, salaries could drain the General Fund. Mr. Fil stated that the report of fund balances will show development fee revenue. Mayor Moran stated she wished to track this fee revenue monthly. Rick van Hoesen spoke as Chair of the Finance Committee. He questioned the wisdom of expending funds for school playfields when, if Measure D passes, the schools might be able to use those funds for that purpose. Mr. Perlin replied that the City did not know how the Measure D funds would be used, but the staff could ask. Finance Committee Member Kathy Hahn agreed that we should find out if there is an existing policy on use of the funds. Speaking of the previous discussion on goals for the Recreation Department, Councilmember Jacobs considered that a good idea for accountability. Mr. Fil noted that the staff could provide quantification in the goals section of the budget. Mayor Moran agreed that was a good idea. Mayor Moran also believed the budget needed a statement about what the City is not doing any more because of budget cuts. Mr. Perlin felt that should be in a different document because the scope of that issue could cover more than 'the two-years covered by the budget. He suggested Council direct staff to prepare a multi-year plan for full cost recovery in Recreation. Recreation Director Joan Pisani stated that such a plan could be prepared in June after the Parks and Recreation Commission meets. The only area in which they cannot achieve full cost recovery is the teen City Council Minutes 3 May 27, 1997 program. Mr. Fil felt the Recreation cost recovery tracking should be tied into the quarterly budget reviews. Kathy Hahn felt it is important to communicate the down side of the revenue loss. Mr. Fil stated that it could appear in the Budget Message portion written by the City Manager. Mr. Ousley felt that communicating what the City is not doing would show those who said the Utility User Tax was not needed the results of that revenue loss. Mayor Moran thanked the Finance Advisory Committee for their work on the budget and for being aware of the broader issues as well. 7. Joint Meeting with Hakone Foundation Board of Trustees - 8:50 p.m. At Mayor Moran's invitation, all those present in the room introduced themselves. Kay Duffy, President of the Board, reviewed the history and activities of the Foundation, noting that most of the activities are self- supporting. Marge Bunyard, Membership Chair, explained that the Board had changed their dues system to provide for a better cash flow. She reviewed the numbers of members, dues, and gifts. Daryl Becker explained the Foundation budget further and stated they will be able to meet their expenses. They have not reviewed their budget with City staff. Mayor Moran suggested that the "Visitors" item be renamed to make it clear that the funds are being used for visitors such as exchange students and dignitaries. In answer to Councilmember Bogosian, Mr. Becker reviewed the parking fees and explained that increased revenue is expected because of increased publicity. C0uncilmember Shaw suggested that the conference brochure indicate how large a group the facilities can accommodate. In answer to Councilmember Wolfe, the Board stated that signs have been helpful in increasing the usage of Hakone. Bruce Parkinson noted that the Board may also receive a donated redwood sign. In answer to Councilmember Shaw, Mrs. Duffy replied that the Foundation does belong to the Chamber of Commerce. She also mentioned that their increased payroll costs are largely due to the increased activity. She believed they are close to their capacity at some seasons. They are attempting to emphasize business meetings over weddings. A. Proposed revisions to Management and Operntions Agreement and Trust Agreement Mr. Becket stated that the Board approves of the proposed agreement and has authorized their President to execute it. The rental of the caretaker's house, however, is still an open issue. In answer to Councilmember Bogosian, Mrs. Duffy stated that caterers are insured for liability. Mr. Fil stated that although the City is insured, ABAG would seek to indemnify itself. Mr. Perlin stated that the City Attorney would not be involved in liability claims because ABAG has its own attorney to administer claims. Concerning financial reporting, Mr. Fil stated that although the level of reporting would be improved, it would not be an audit. Mayor Moran stated that the Council and the Board should maintain communications as to the Foundation's finances. Mr. Becker said they could supply financial reports quarterly. Mrs. Duffy pointed out that the Board had agreed to pay for the financial compilation; they could continue informal contacts to talk about finances with the Council if the Council wished. Mr. Perlin stated the agreement will be on the Council's June 4 agenda. As to his note on page 2, that concerned the duties of the caretaker. It would be desirable to create one unit of low income housing, using City Council Hinutes 4 Nay 27, 1997 about $40,000 of CDBC funds to renovate the house. However, use of CDBG funds may place limitations on the duties the caretaker is expected to perform. Mrs. Duffy notsd that Teru Ishlhara had lived and worked at Hakone Gardens for many years. When she retires she should be recognized with a ceremonial document from the Council. There was consensus to do so. B. Other 8. Self-Evaluatlon of Previous Heeting - No comments. 9. Agency Assignment Reports - No comments. 10. Other Concerning City Manager recruitment, Mayor Moran announced that the Council had reached consensus to approve the proposal of Hughes Perry, with Rich Perry to be the lead recruiter. Approval of the contract will appear on the Council's June 4 agenda. She directed the staff to thank the other firm interviewed and cancel any appointments with other firms. She felt the contract price in the proposal was acceptable, but they should also prepare an estimate for expenses for travel and other items. Mr. Fil noted that this would be included in a budget amendment resolution on the June 4 Council agenda. 11.' Adjournment The meeting was adjourned at 9:55 p.m. Respectfully submitted, P 1 Interim City Manager